Loading...
HomeMy WebLinkAboutSeptember 20, 2005 Agenda AGENDA CITY OF DENTON CITY COUNCIL September 20, 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, September 20, 2005 at 4:30 p.m. in the Council Work Session Room at City Rall, 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 proposed Emergency Services District for Fire and Emergency Medical Services in the Argyle, Bartonville and Copper Canyon jurisdictions and other County areas in the City of Denton's ETJ. 2. Receive a report, hold a discussion and give staff direction regarding annual technology contracts. 3. Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of September 20,2005. 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 Texas Government Code Section 551.071 and Deliberations Regarding Real Property - Under Texas Government Code Section 551.072. 1. Receive legal advice from the City Attorney regarding the status and possible settlement of condemnation proceedings styled City of Denton v. Dana J Beavers, aka Dana J Smith, et ai., Cause No. ED-2004-485, pending in the Probate Court of Denton County, Texas, being an acquisition of a public utility easement out of a tract of land south of McKinney Street on Loop 288. B. Deliberations Regarding Real Property - Under Texas Government Code Section 551.072. 1. Receive a confidential briefing and hold a discussion regarding information relating to valuation and to other factors involved in the proposed abandonment and release of certain blanket electric utility easements owned presently by the City on real property owned by Roligan Land Development, Ltd.; said easements being located on a 160.023 acre tract ofland and being situated in the Gideon Walker Survey, Abstract No. 1330, Denton, Denton County, Texas. City of Denton City Council Agenda September 20, 2005 Page 2 C. Consultation with Attorney - Under Texas Government Code Section 551.0. 1. Consider and discuss status of litigation styled Tower v. City of Denton, Cause No. 4:05cv302, currently pending in the U.S. District Court, Eastern District, Sherman Division. D. Personnel Matters - Under Texas Government Code Section 551.074. 1. Deliberate the evaluation, discipline, and duties, including contractual duties, for the City Manager, City Attorney, and Municipal Court Judge. 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. After determining that a quorum is present, the City of Denton City Council will convene in a Regular Meeting on Tuesday, September 20, 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 1. Consider a Resolution of Appreciation for Kathy DuBose. B. September Yard-of-the-Month Awards C. Recognition of staff accomplishments 3. BUDGET INDIVIDUAL ITEMS FOR CONSIDERATION A. Consider adoption of an ordinance adopting the Budget and first year of the Capital Improvement Plan of the City of Denton, Texas for the fiscal year beginning on October 1, 2005 and ending on September 30, 2006; and declaring an effective date. City of Denton City Council Agenda September 20, 2005 Page 3 B. Consider adoption of an ordinance levying the ad valorem tax of the City of Denton, Texas, for the year 2005, on all taxable property within the corporate limits of the city on January 1, 2005, not exempt by law; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. C. Consider adoption of an ordinance of the City of Denton, Texas, approving the 2005 Tax Rolls; and providing an effective date. 4. BUDGET CONSENT AGENDA Budget Consent Agenda Items A-GG are items that support the proposed 2005-2006 budget and have been previously considered in budget work sessions. Approval of the Budget Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the recommendation. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Budget Consent Agenda Items A-GG will be approved with one motion. A. Consider adoption of an ordinance amending the Schedule of Rates contained in Ordinance No. 2004-386 for electric service; amending the local government service rate (Schedule GL); amending the weekend rate (Schedule WK); amending the athletic field rate (Schedule AF); amending the facility charge on the street lighting rate (Schedule LS); amending the traffic lighting rate (Schedule L T); amending the other lighting rate (Schedule LO); amending the facility charge on the security lighting rate (Schedule DD); amending the facility charge on the downtown decorative lighting rate (Schedule DDL); adding the decorative street light rate (Schedule DSL); amending the temporary service rate (Schedule Tl); amendment of several provisions of the Energysave Program to clarify the meaning thereof (Schedule EP); adding a dark fiber rate (Schedule DFR); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). B. Consider adoption of an ordinance amending the Schedule of Water Rates contained in Ordinance No. 2004-256 for water service and water rates; amending the wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); amending the wholesale raw water pass-through rate for Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WCL); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval ( 5-0). C. Consider adoption of an ordinance amending the Schedule of Wastewater Rates contained in Ordinance No. 2004-257 for Wastewater Service; amending the residential wastewater service - facility charge and volume charge (Schedule SR); amending the mobile home park - facility charge and volume charge (Schedule SMH); amending the commercial/industrial wastewater service - facility charge, City of Denton City Council Agenda September 20, 2005 Page 4 volume charge, pretreatment program charge, sampling and analysis charge, and surcharge; (Schedule SC); amending the commercial/industrial wastewater service rate which measures with dedicated meters (sub-meters) water for wastewater billing - facility charge, volume charge and surcharge (Schedule SCD); amending the commercial/industrial wastewater service rate which measures with dedicated meters (sub-meters) water excluded from wastewater billing - facility charge and surcharge (Schedule SCS); amending the equipment services facilities and restaurants and food service establishment - facility charge, volume charge, pretreatment program charge, sampling and analysis charge, and surcharge (Schedule SEE); amending the metered wastewater inside and outside corporate limits - facility charge, volume charge, pretreatment program charge, sampling and analysis charge, and surcharge (Schedule SM); amending the wholesale wastewater treatment service for a governmental agency, division, or subdivision - facility charge, pretreatment program charge, volume charge, sampling and analysis charge, and surcharge (Schedule SSC); removing the dyno chips rate and adding an asphalt millings rate (Schedule CWM); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). D. Consider adoption of an ordinance amending the schedule of rates for Solid Waste Service contained in Ordinance Number 2004-258 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton Solid Waste Service; amending the Residential Solid Waste Collection Services Schedule (SWR); amending the Residential Recycling and Processing Services Schedule (SWRR); amending the Residential Financial Need Discount Schedule (SWRD); adding the Multi-Family Recycling and Processing Services Schedule (MFR); amending the Commercial Solid Waste Collection Services Schedule (SWC); removing the Collection and Transportation Services Permit Schedule (SWP); amending the Sanitary Landfill Services Schedule (SWI); providing for a repealer; providing for a severability clause; and providing an effective date. The Public Utilities Board recommends approval (5-0). E. Consider adoption of an ordinance providing for the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to City customers and taxpayers contained in Ordinance No. 2004-387 and as also amended during previous FY 2004-2005; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). F. Consider adoption of an ordinance providing for the payment of inspection services fees to the City of Denton for public improvements constructed by developers, related to private development; providing for the superseding of ordinances in conflict with this ordinance; providing an effective date. The Public Utilities Board recommends approval (5-0). City of Denton City Council Agenda September 20, 2005 Page 5 G. Consider adoption of an ordinance of the City of Denton, Texas amending and wholly substituting and superseding the provisions of Chapter 24 of the City of Denton Code of Ordinances as attached hereto, regarding Solid Waste Service; providing for a repealer, providing for a severability clause; and providing an effective date. The Public Utilities Board recommends approval (5-0). H. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Harris Public Utility Billing System and associated software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3373 - Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $56,755). I. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department dispatching and records management 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 3384 - Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $148,079.66). J. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Geographic Information System (GIS) 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 3382 - Purchase of Annual Maintenance for Geographic Information System (GIS) Software Package awarded to Environmental Systems Research Institute (ESRI) in the amount of $35,000.00). K. Consider adoption of an ordinance awarding a contract for the purchase of annual maintenance for the Nortel phone system including 24 hours per day 7 days per week support on all equipment located in City of Denton facilities as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefor; and providing an effective date (File 3378 - Annual Maintenance for Nortel Phone System awarded to Verizon Southwest in the amount of $44,092.85). L. Consider adoption of an ordinance awarding a contract for the purchase of continued software maintenance, and services for the LaserFiche Document Imaging System currently being used by the City of Denton from VP Imaging, as awarded by the State of Texas General Services Commission through the Catalog Information Services Vendor (CIS V), formerly known as Qualified Information Services Vendor (QISV), providing for the expenditure of funds therefor; and providing an effective date (File 3381 - Purchase of Annual Maintenance for LaserFiche Document Imaging System awarded to VP Imaging, in the amount of $42,848.20). City of Denton City Council Agenda September 20, 2005 Page 6 M. Consider adoption of an ordinance authorizing the execution of change order two to a contract for lease purchase financing of PC's, monitors, and peripheral equipment for Utility and General Government (with the exception of Public Safety) Departments between the City of Denton and Dell Government Leasing and Finance; providing for an increase in the time period and an increase in the annual lease payment amount; and providing for the expenditure of funds therefor; and providing an effective date (File 3110 - Dell Government Leasing and Finance awarded in the amount of $1,056,923.70, change order one in the amount of $331,241.64 and change order two in the amount of $116,626.32 for a total of $1,504,791.66). N. Consider adoption of an ordinance awarding a contract approving the expenditure of funds for the purchase of Mitsubishi 80kV A UPS and distribution system 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 3379 - Mitsubishi 80kV A UPS and distribution system awarded to Data Com Power, Inc., in the amount of$61,101). O. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Millennium Library System and associated hardware and software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3371 - Purchase of Annual Maintenance for Millennium Library System awarded to Innovative Interfaces, Inc. in the amount of $33,069). P. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle Relational Database Software 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 3374 - Purchase of Software Maintenance for Oracle Relational Database Software awarded to Oracle USA, Inc. in the amount of $35,860). Q. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld)) 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 3372 - Purchase of Annual Maintenance for Oracle Enterprise One Software Package awarded to Oracle USA, Inc. in the amount of $89,900). R. Consider adoption of an ordinance awarding a contract for the purchase of annual maintenance for the City of Denton Cisco networked devices (Smartnet) including switches, hubs, routers, and Cisco IP phone equipment including 24 hour/7 days per week Technical Assistance Center (TAC) support on all equipment located in City of Denton facilities as awarded by the State of Texas Building and City of Denton City Council Agenda September 20, 2005 Page 7 Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefor; and providing an effective date (File 3377 - Annual Maintenance for Cisco Networked Devices awarded to InterNetwork Experts in the amount of $88,696). S. Consider adoption of an ordinance awarding a contract for the purchase of software maintenance for continued vendor support of the Informix Dynamic Server Relational Database software as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefor; and providing an effective date (File 3370 - Purchase of Software Maintenance for Informix Dynamic Server Relational Database Software awarded to CompuCom Systems, Inc. in the amount of$64,817.00). T. Consider adoption of an ordinance awarding a contract for the purchase of continued software license maintenance for the City of Denton's Novell products as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR); providing for the expenditure of funds therefor; and providing an effective date (File 3380 - Annual Software License Maintenance for Novell Products and Acquisition of Additional Novell Licenses awarded to SHI-Government Solutions in the amount of $98,051.05). U. Consider adoption of an ordinance awarding a contract under the Catalog Information Services Vendor (CISV) program for the purchase of a Unitrends DPU-5000 Data Protection Unit, and DPV-5000 Data Protection Vault as awarded by the State of Texas Building and Procurement Commission contract CISV #1200955787200; providing for the expenditure of funds therefor; and providing an effective date (File 3376 - Purchase of Unitrends DPU-5000 Data Protection Unit, and DPV-5000 Data Protection Vault, awarded to ARW Systems, LLC. in the amount of $198,744). V. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service access and support for the General Packet Radio Services (GPRS) wireless computer network for the Public Safety mobile computers used by City of Denton Police, Fire and EMS personnel 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 3383 - Purchase of Annual Service Access and Support for General Packet Radio Services (GPRS) awarded to Cingular Wireless (formerly AT&T Wireless) in the amount of $117,289.80). W. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Black Chamber of Commerce for the payment and use of hotel tax revenue; and providing an effective date. X. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Chamber of Commerce (Convention and Visitor Bureau) for the payment and use of hotel tax revenue; and providing an effective date. City of Denton City Council Agenda September 20, 2005 Page 8 Y. Consider adoption of an ordinance authorizing the Mayor to execute an interlocal agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Courthouse-on-the-Square, the Bayless- Selby House and the African American Museums; and providing an effective date. Z. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Community Theatre, Inc. for the payment and use of hotel tax revenue; and providing an effective date. AA. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Festival Foundation for the payment and use of hotel tax revenue; and providing an effective date. BB. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Greater Denton Arts Council for the payment and use of hotel tax revenue; and providing an effective date. CC. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton County Historical Commission, Inc. for the payment and use of hotel tax revenue, and providing an effective date. DD. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue; and provide an effective date. EE. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Central Business District Association of Denton, Texas, d/b/a Denton Main Street Association for the payment and use of hotel tax revenue; and providing an effective date. FF. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the North Texas State Fair Association for the payment and use of hotel tax revenue; and providing an effective date. GG. Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Tejas Storytelling Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. 5. 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. City of Denton City Council Agenda September 20, 2005 Page 9 Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A-S). 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-S 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 of the City of Denton authorizing an agreement between the City of Denton, Texas and Opening Doors Immigration Services for provision of assistance to victims of domestic violence; providing for the expenditure of funds therefor; and providing for an effective date. B. Consider adoption of an ordinance authorizing the City Manager to execute a personal services agreement with Barbara T. McCall Associates, Inc. to provide certain information and services with regard to legislation of interest to the city. C. Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 3396 - Electrical Energy Transmission Fees in the total amount of $134,421). The Public Utilities Board recommends approval (4-0). D. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the Dallas Independent School District, Texas under Section 271.102 of the Local Government Code, to authorize participation in various Dallas Independent School District contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 3404 - Interlocal Agreement with the Dallas Independent School District). E. Consider adoption of an ordinance accepting competitive bids by way of an Interlocal Cooperative Purchasing Program Agreement with the Dallas Independent School District under Section 271.102 of the Local Government Code, for the purchase of products and services for an onsite vehicle parts facility; providing for the expenditure of funds therefor; and providing an effective date (File 3405 - Interlocal Agreement for the Purchase of Products and Services for an Onsite Vehicle Parts Facility with the Dallas Independent School District, contract awarded to Genuine Parts Company in the estimated amount of $839,946). F. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a professional services agreement with the firm of Arthur Surveying Co., Inc. to provide professional surveying services in support of the City of Denton Engineering Department; authorizing the expenditure of funds therefor and providing an effective date (PSA 3219 - in an amount not to exceed $200,000). The Public Utilities Board recommends approval (4-0). City of Denton City Council Agenda September 20, 2005 Page 10 G. Consider adoption of an ordinance accepting sealed proposals and awarding a contract for Benefit Consultant Services for the City of Denton; providing for the expenditure of funds therefor and providing an effective date (RFP 3355 - Benefit Consultant Services awarded to McGriff, Seibels and Williams in the annual amount of $48,500). H. Consider adoption of an ordinance of the City Council of the City of Denton, Texas approving payment for the purchase and installation of Caron compactor parts; and providing an effective date (File 3401 - Purchase of Wheels for Landfill Compactor awarded to Caron Compactor Company in the amount of $34,397.84). The Public Utilities Board recommends approval (4-0). I. Consider adoption of an ordinance of the City of Denton, Texas amending the provisions of Chapter 6 relating to Animals by amending Sections 6-27 regarding the keeping of livestock; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. J. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Greater Denton Arts Council for the development and marketing of exhibitions at the Fall Festival; providing for the expenditure of funds therefor; and providing for an effective date. K. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the American Legion to assist in purchasing food, providing monetary assistance to subsidize utility bill and rental payments for citizens and for subsidizing medical costs for senior citizens, providing for the expenditure of funds therefor; and providing for an effective date. L. Consider adoption of an ordinance of the City of Denton, Texas authorizing settlement of an eminent domain action styled City of Denton, Texas v. Dana J Beavers aka Dana J Smith, et ai., Cause No. ED-2004-485, filed in the Probate Court of Denton County; authorizing the City Manager and the City's attorneys to act on the City's behalf in executing any and all documents, and to take other actions necessary to finalize the settlement; authorizing the expenditure of funds therefor; and declaring an effective date. M. Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal agreement by and between the City of Denton, Texas and the Town of Copper Canyon, Texas to provide gas well inspection services; and providing an effective date. The Public Utilities Board recommends approval (5-0). N. Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a First Amendment to Professional Services Agreement with Kimley-Horn & Associates, Inc. for additional Professional Engineering Services related to the Final Design of the Southwest Booster Pump Station and Storage Facilities; 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 September 20, 2005 Page 11 O. Consider approval of an ordinance authorizing the abandonment and release of certain blanket electric utility easements owned by the City, to the extent that they encumber certain real property owned by Holigan Land Development, Ltd. containing approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 1330, Denton, Denton County, Texas; and providing an effective date. The Public Utilities Board recommends approval (4-0). P. 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 Wolfe, Tidwell & McCoy, LLP for professional legal services relating to litigation styled Tower v. City of Denton, Cause No. 4:05cv302 currently pending in the U.S. District Court, Eastern District, Sherman Division; authorizing the expenditure of funds therefor; and providing an effective date. Q. Consider approval of a resolution of the City of Denton finding and determining that the number of inhabitants in the City of Denton is in excess of 100,000; and providing an effective date. R. Consider adoption of an ordinance of the City of Denton, Texas approving and authorizing the Mayor to execute an asset purchase agreement, bill of sale and other documents transferring all buses, equipment and other assets from the city passenger motor carrier transit system known as LINK to the Denton County Transportation Authority and authorizing the Mayor to execute an assignment of that certain agreement to provide the services for the passenger motor carrier transit system known as LINK, with McDonald Transit Associates, Inc. dated April 16, 2002, as amended, to the Denton County Transportation Authority; authorizing the extension of that certain interlocal cooperation agreement with the Denton County Transportation Authority effective October 1, 2004 and an extension of the McDonald Transit Associates, Inc. agreement, if necessary, authorizing necessary actions and the expenditure of funds to complete the transfer; and providing an effective date. S. Consider adoption of an ordinance of the Denton City Council approving and authorizing the Mayor to execute a master lease agreement providing for the lease of certain tracts of realty at the City of Denton Landfill, by and between the City of Denton, Texas, as lessor and the Denton County Transportation Authority, as lessee; authorizing the expenditure of funds therefor; and providing an effective date. 6. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance approving an amendment to the Detailed Plan for Planned Development 173 (PD-173) zoning district for approximately 33.65 acres. The subject property is generally located on the north side of Robson Ranch Road, approximately 2,500 feet east of Florence Road. The Planning and Zoning Commission recommends approval (7-0). (Z05-0017, Robson Ranch Golf Course) City of Denton City Council Agenda September 20, 2005 Page 12 B. Hold a public hearing and consider adoption of an ordinance approving the zoning of 95.16 acres from Neighborhood Residential (NR-2) to Neighborhood Residential (NR-6) with an overlay district. The property is located in Tract 4A of the William Roark Survey and Tract 11 of the J Edmondson Survey and is generally located on the east side of Bonnie Brae, 1,300 feet west of US 377, and 2,800 feet south of Roselawn Drive. The Planning and Zoning Commission recommends approval (7-0). (Z05-0020, GlenwoodMeadows) C. Hold a public hearing and receive citizen input on an ordinance of the City of Denton, Texas amending the Denton Comprehensive Plan to include the Open Space Concept Plan; and providing for an effective date. 7. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a grant agreement from the Texas Department of Housing and Community Affairs for Emergency Shelter Grant Program and to take all other actions necessary; and providing for an effective date. B. Consider appointing a voting delegate and an alternate voting delegate to the National League of Cities Annual Congress of Cities. C. Consider approval of a resolution appointing members to the Board of Directors of the North Texas Higher Education Authority; and declaring an effective date. D. Consider approval of a resolution nominating members to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. E. Consider nominations/appointments to the City's Economic Development Partnership Board. F. Consider nominations/appointments to the City's Boards and Commissions. G. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. H. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda I. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. J. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. City of Denton City Council Agenda September 20, 2005 Page 13 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: September 20, 2005 DEPARTMENT: CM/DCM/ACM: Fire Jon Fortune, Assistant City Manager P SUBJECT Receive a report, hold a discussion and give staff direction regarding a proposed Emergency Services District for Fire and Emergency Medical Services in the Argyle, Bartonville and Copper Canyon jurisdictions and other County areas in the City of Denton's ETJ. BACKGROUND What is the issue? The jurisdictions of Argyle, Bartonville, Copper Canyon, Corral City, Northlake and other contiguous unincorporated Denton County areas within the Argyle Volunteer Fire District are exploring the possibility and feasibility of creating a funding source for the provision of fire protection and emergency medical services (EMS) in those areas. Currently, the Argyle Volunteer Fire District (A VFD) provides this service through contracts with the jurisdictions as well as Denton County. However, as the area continues to grow, the Argyle Fire Department has identified that it needs to move toward a career fire department supplemented by volunteer to meet service requirements. An "Argyle Volunteer Fire District Evaluation and Plan" by Emergency Services Consulting recommends the creation of an Emergency Services District (ESD) to provide emergency medial services, emergency ambulance services, and rural fire prevention and control services and to levy an ad valorem tax up to $0.10 per $100 of assessed value to fund the district. What is an Emergency Services District? Subchapter B of Chapter 775 of the Health and Safety Code outlines the procedure for creating an Emergency Services District (ESD). The process is started by submission of a petition to the County Judge from at least 100 voters who own taxable property within the proposed district. The petition must include: 1. The statement that the creation of the district is in accordance with the relevant sections of the constitution and law. 2. The name of the proposed district. 3. A legal description of the boundaries of the proposed district. 4. A list of services that the proposed district will provide. 5. The mailing address of each petitioner. 6. The name of each city whose consent to form must be obtained. Page 1 of3 The consent to form the ESD is solicited from all cities included within the proposed boundaries. Municipal consent is also required from any city with an extraterritorial jurisdiction (ETJ) designation within the proposed district. In the case of the Argyle Volunteer Fire District (A VFD), the cities of Argyle, Bartonville, Copper Canyon, Corral City, and Northlake are included wholly (or partly) within the district's service area. The City of Denton has designated ETJ in the northern extent of the A VFD. The Commissioners Court has sole jurisdiction to grant or deny the petition. If the proposed boundary of the ESD includes cities or ETJ's, the Court must consider each of the cities and/or ETJ's. If the Court finds that the proposed district fails to meet stipulated requirements, the petition is denied. If the petition is granted, an election is scheduled to confirm the creation of the district and to authorize the imposition of a tax levy within the limits fixed by the Texas Constitution. When the election is certified and the district is created, the Commissioners Court appoints a five-member board of emergency services commissioners to serve as the districts governing board. How would this Emergency Services District impact the City? Since the ESD is in the City's Extraterritorial Jurisdiction (ETJ), the following must be accomplished in accordance with Chapter 775 to create the District: 1. A written request to include the City of Denton's extraterritorial jurisdiction (ETJ) in the district to be created must be presented to the City of Denton's City Council after the petition is filed under Section 775.015. 2. The City of Denton's City Council must give written consent on or before the 60th day after the date on which the City receives the request. 3. If the City of Denton's City Council does not consent to inclusion within the 60-day period as stated above: · A majority of the qualified voters and the owners of at least 50 percent of the territory in the City of Denton extraterritorial jurisdiction that would have been included in the district may petition the City of Denton's City Council to make fire control and emergency medical and ambulance services available. · The petition must be submitted to the governing body not later than the 90th day after the date on which the City of Denton receives the request. 4. If the City of Denton's City Council refuses or fails to act on the petition within six months after the date of which the petition was submitted, then the refusal or failure to act constitutes consent for the territory that is the subj ect of the petition to be included in the proposed district. There are also provisions that allow a municipality to annex territory in a district but this may involve compensation of a pro rated portion of the District's indebtedness. Specifically, Section Page 2 of3 775.022 of the law discusses the annexation of ESD territory into a city. When a city annexes part of the ESD with the intention to provide municipal emergency services in the annexed area, the city must compensate the ESD for the territory's share of any bonded or other indebtedness. In addition, the city may be required by the ESD to purchase any real or personal property used to provide service in the de-annexed area. OPTIONS: The City of Denton will have a number of opportunities to discuss the formation of this Emergency Services District before it is scheduled for a possible election in the spring of 2006. There are several options that the city may consider in making a decision on areas of its ETJ. All the options essentially depend on an annexation policy for the ETJ in the proposed ESD. 1. If the City does not intend to annex the areas of the ESD that fall within the city's ETJ, it could consent to the formation of the district. The advantage to the City is that the Argyle Fire Department will improve in its response capabilities and that will improve the fire protection and EMS mutual aid availability in the southwest portions of the City of Denton, most notably Robson Ranch. 2. If the City determines it may annex this area in its ETJ sometime in the future, it could oppose the district due to future financial liabilities and choose to provide the fire protection and EMS services to the territory with City resources. 3. If the City determines it may annex this area in its ETJ sometime in the future, they could oppose the district due to future financial liabilities and voice its opposition to the Commissioners Court. If you should have any questions, please contact me at 8830. Respectfully submitted: Ross Chadwick Fire Chief Page 3 of3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Technology Services ACM: Kathy DuBose 16. SUBJECT Receive a report, hold a discussion and gIve staff direction regarding annual technology contracts. BACKGROUND The City of Denton uses several software and hardware solutions to conduct daily business in every department. It is essential for the City of Denton to upkeep current maintenance with these vendors to ensure access to upgrades, software fixes, hardware repair/replacement, technical support and licensing of these applications. These maintenance contracts must be renewed annually. Attached are the tables, which track the annual expenditures that have been updated with the current year's information. The Dell lease extension will extend the lease agreement and warranty coverage on the personal computer equipment by one year, and an equipment inventory is also attached. In addition, requests to replace the UPS in the Police Department data center and replacement of the backup system used to backup and restore data for public safety and other departments are also included. The current UPS in the Police Department data center was installed in 1990, and has exceeded its estimated life by five years. The current backup solution was installed in 1995, and can no longer meet the backup and restore requirements for the organization. FISCAL INFORMATION Funding is budgeted in the Technology Services budget. EXHIBITS Cost Analysis Respectfully submitted: ~- Alex Pettit Director of Technology Services "- <O~ ~ ~- >< 8<0 ("\J :88 _ 0_ "<to> 81[) ("\J ;38 _ 0_ ("')~ 8<0 ("\J 88 N ~- >< 8"- ("\J ~8 ;:: ~->< 81[) ("\J I[) o~ 25 U1- 8("') ("\J 88 _ I[)_ 0>("') 8l("') ~ o "- ("') ("') ~ u:: _ C/l 0::: Qj (/) C/l UJ :J t'O o ~ a.Ol a...Q ill ~ .8 c .~ ~ ~ ~ ~ Ol III C :Zt~ III 0 Ol - a._ t:: <r c...~ :J Q) :J co o .!!1 C/l E ~e-.8c .~ ~ :5 ~ .~ Q) ~ ~ :J.8ro..c :2:OlU"" o<l .~ 3l ;:: .~ ~ m ~ ~ ~ g ~ :r: C/l .- U t::~1 0 o<rcnc c.. c.. C I c.. :J "w 0 ~ e ~ ~ o ~.~.~ ~O-oE C ;:: Ol 0 .~ E ~ C c~e~.8 :2~~~Q) .g- ~ ~ ~ ~ ~2~g~ ~8:JO::J o C/la Ola :s 0)- roOO Ol LL C/l 'w >- Iii C <( W o o '0 -0 <( o Ola Co 0_ ~~ o~ (/) ~ 'c x .~ .2 C 2i- 'iij -0 Ol C '0, C Ol C/l ;S C/l C/l Ol U U III C/l Qj C/l :J -0 Ol C/l C Ol ~ C ~ :; U C o U o o I[) C III :5 Ol o :2: Ol Iii ;:: <g C/l Cl ~ ii5 C/l 'C Iii :r: Ol :5 -0 C III Ol Iii ;:: iI:' o C/l (/) o C/l t :J o o Iii a. '0 'c :J :2: Ol U '2: Ol C/l (/) (9 0::: (/) UJ Ol :5 C/l t o a. a. :J C/l Ol C '0, C Ol ~ .~ :il E ";;:: 0 ~E E Ol OJ:: 01- ..-- r-- c:0 c:0 Q) u::: en '(jj ~ ell c <( .... en o o ~8 _ (J)_ LO(J) 8<0 N :g8 _ <0_ "<tN 8<0 N ;38 _ <0_ C')N 8<0 N C') 0 0 0 "<t_ N 0 0 <0 0 N NO 00 _ <O_ X O"<t 0"- N 0 e8 Oro 8<0 N 0 0 0 0 o_ m N (J) N (J) ~ ~ Q) -0 o ~ ~ N "- C') C') ~ u:: Cl f/) c ID 0 t (/) 0 o :J 0 a. _N ~ ~ 0 en m~~~ "g ~ E ~ m _ :J .~ C m Co "";5: 0 gl-g~~- m ~ N ~clC)Z; 8 .~ .E ~ Om>. Q) m-515 3: ~ III C ~ ~ ~~ m +-'- 0 ...::! a. C Q) 0 Q) f/) f/) ~ ~ m ~ "E ~ g .~ ~ ~ .- ~ -0 Ef/) a. UJQ)~.2 ~ ~ ID ~ .8m_~2 (f).~ ~ ~ ~ ~ .~ ~ --'E () a. ~ ..Q a.- 5 .g .2. <( .~ :;:;-0 E~2 .g- ~ 2 .2 m o ~ (/) ~ :J ~ .~ ~:g ~ 02 <(<( ~8 ~o ~ g- Q)~ LL '0 -0 <( ~8 III 0_ ;5:(J) ~C') 0"- (/) Iii :B E f/) 'w >- Iii C <( u; o o Q) 'E C '2 Of/)a. Q) III 0 .~ C Q) e-~9ii -E.2"E ~~~ (3Q)"'C III E UJ O.2~ f/) Q) () 'S; Q; (/) C o ~ E .E C 0::: :r: .2 C o ~ .!,1 a. a. III Q) E ~ .~ III E -0 Q) N 'E o u; :J () III -0 C III f/) E Q) u; >- (/) Iii '0 C III C u:: >- c o f/) Q) .2 ~ Iii () :;:; .E5 C o fj :J -0 o a. .E t:: o a. a. :J f/) "- X "<t N f/) Q) -0 :J U .~ c Q) E f3 E :.c ~ ;5: o -0 (9 ~ - Q) III lI:: g 0- --' Q) (/) g 2 III <( ~ -g ~ ~ 0 E ~~__o_ () 0 Q) ~ ~ =0 ~ ~-E ~ ~ 0 ;5: ~ .::: 0 -0 f/) - UJ m ~ Oc--+-'- -, Q) 0 o~ C c o ~ U ::; Q) () (/) (j) C C f/) 0 o Q) () .~ = -g III 0 f/) a. - III E 0 Q) o .i:: <3 Oo..c Q) ..Q .E5 f/) ..Q :J f/) C >- o~ ~ ~ C :J ..!!! () a.Q) ~S ~tli -I'- ~ <D- ol!) N ~8 _a ;g "<t- al!) N ;g8 ?5 l!)_ >< >< 8tli N 88 2\i(")-><><>< 8[;; N 8~ -(") ~ ro- 8N N o~ -(") 8 ro- aN N (") I'- (") (") ..Q1 u:: en C o ~ ~ ~ u 'w .~ '5 Q) 0.. Q) -0 a. -0 ro ro ~ ~ 2 .~ '5 ~ ~ ~- ~ co ~ ij:: ro 0 -0 -0 't"""""'C Q) .9 o Q) :s .~ oli= 1:5 t: 05 2 ro aQ) Ui I N C ~ E ~ ~ (/) (/)- e (;)"'CQ)Q)~; >-OE~:J Q) en E.- -0 1:: QjE~-ooO -ooo.-oEo. o U co co Q) ~ ~ u 2 .~ Q) ~0g>~c:..Q :S~tO~.8 >-Q)oE~ro ':: Clg-E ~ro +-'~~oo"'C :J..c ID 8-- -ou>roen5 ~ I eoa~ cnc..-..""Cco g>~E I Q) I :: co I ~ ~ 6 ..c13~ g>-9~ >.-+-'::Jro..c~ c:!::::::C""C..cQ)O) ,g:s~~,::s2 c.. Q) C'C ";;:: ~ ..c l.... ";;:: Q) Q) ~ ~ -g 8.. 0... Co .~ ~:5~~ai~;j ena ~8 :J 1'-- m~ LL en 'w >- ro C <( Ui o o -0 -0 <( o ~l!) ro ~_ ~8 0(") en ro :;:; 'c en 'C ro I J:: C o E J:: U ro Q) en Cl C :.c C en Jij o -0 C Q en Q) ~ Q) u ~ ~ cl--Q)- Q) U C e 'iij a. E C Q) .Q (/)f--U- o Q) }j 3l -0 Q) 15 f; CI--c- ~ :; El 2 5 ~ ~f-:~ - C 1:: o ro en a. ~ Eai Sl--~~ ID we ~ -o- m ~~ ~fj <' 0.-.- -E o 0.>< ~5 8 iill- Cen "<t- ro ro- ~ E I'- Q) C u:: 2 <17 >- ro en b o~ ID-~ Q) 8~ roQ) U -Q) S:5 ~ ale:: _~ ~ ~:s: ID~ c 1 ro-t II >- 5 0 'iij >- ro Q) 5 E roal UiQ) ~ ~~ ~J c~ro(9 2ro ~ m~;:c ~:J ~c3m2 s~ 2a~-o -O"=' ::JiOL!)l.... :.=..,C o.(")-"<t 0 0 U E~<I7g enro o~ 10 E- O <17 @) 0 e .~ (/) b :::J ~ c . t: Q) 1ii <( en J:: rou__ - Q)U I ffi en:s .~ 2 >.c"'C1O 10 Q) ..QQ)2u cf; al~ rl~ Q)-o .= roE '6 :::J III Q) ~ ~LL l...."'C ~ ~ g- '5 uro"<tJ:: o:::e co ~ I U c.. ~cClro cc C ro .~ ~ 0 0 ~~~ro :S~ ~~&6 5i5l Q)c::J>- (/)0> Co ~ ~ ~ ~.~ 51-W_ :;:;ai <g enO ~ Q) :J >- (/)__=w ""C:!:::::: co "E 2 ~ f-.~ +:; -coo(/)> ~::> ~~:S:g Sl! ro::J..c~ co-- o en ~- oCS 1:5 Q) E E Q) ~ Q) E ee22 Q)~ '+- '+- co co en l+- E E al 5 -o.~ Q) Q) I- Q) I-- C ro UiUiOUi roE in' in' en ~ ~ l! C> C> b l....- "::;: +-' .~ .~ c 2 ~ 5 ii ii .~ ~ .9 ~ roro(j)_ "'C"'C g>.8::>< ~"* "w C> Q) r- f- 0 rn :J C -0 5 ",,",- ctoQ) wE Q) ~ C '5 ~ E Q)croCl >Q) ..cocnc Q)-+-' ~u~.3 2~ ..c .~ ::J :!:::::: en Ui-l-l C" EUi 6oCSoCS ~~ ~.<= eno...o...~en UQ) .~ -g -g ~ ::> en = a. ro ro 0 .!!! [l Cl E "'i:: "'i:: >. t: 0 .~ ororo:!:::::co ~Q) 0(9(90I <(al = .- E ()) ~ -0 C ro ("\J C Q) Q) 5 W ..Q en Q) en en Q) u o 0.. en 'C ro I 1:5 :J -0 o 0.. Q) :5 .8 -0 Q) -0 -0 ro en Q) :; ro ~ ro C o E -0 -0 ro .8 Q)i:J -0 Q) ro en Q) en ro Q) U .~ -0 Q) en ro Q) U .~ (5 C en ro J:: Ui o U Q) U C ro C Q) C 'iij E Q) o o <DO e ~€t L[)L[) 8("') ("\J o L[)a 00 ~ <0- 0("') o ("\J o "<to 00 ?5 ("\J- 0("') o ("\J 88 _0 ("\J 00- 8~ ("\J ~8 _0 ~ "-- 8~ ("\J o ?28 8"-- a~ ("\J o 00 00 m ..q- 0l<D Ol ~ "<t "- ("') ("') ~ u:: C/l 'w >- Iii c <( W o o Cl C 'w c Ol ~ -0 Ol C/l ro ..Q c , .Q (; o..~ .S:: Q) () () ~ e 00.. o C/la Ola :s U1- ro("') Ol~ LL '0 -0 <( o Ola Co 0_ ~d'; o (/) ~ 'c C/l Qj C/l :J '0 Qj ..Q E :J C Qj Cl ~ ro 1:: o a. a. :J C/l .8 ~ '0 ro a. ro () Ol C/l ro Ol t; c en .~ - - -g <:: a. Ol a. C/l :J Ol C/l C/l c ~--2 - ro "'C .2 Ol a. C/l a. :J ro Ol Iii ~--~ ~~ '5 -() -0 C/l ro c ..!!1 0- ro_ Ol C/l J:: C Ol -0 -0 0)- en ~ Ole Cl 0)2 c.. ~-5 ~ .E:.c Co o 5 5 8C/l iI:' ..q- "E ~ <D ro <175 ~~ OlO 5-, ~o .E ~en en C)Q:) Q) .~ ~ ~ C _ a. Ol C :J .2 ~ ro ~:s :J Co 0 c 5 6 ~ iI:' () ~ ~ ~- ro~ ~ :J Ol Cl ~~ ~ <(0 -0 .0 C C/l "<t ro Ol Ol C/l ~Co ~ g ~ 0 en Q) 10 ~:5 ~ Qj 2- .Q ::;<( ro E~ ~ O2 a. O[]J ro E C :z e 0 ~ ~ c 0 Ol ro ro olt....-o .~ ~ ~ 6 (/) '2: -LL Ol .~ S ~ "0.._ 0 g-~-~ ;::.Qj iil ~ ~ Q:) .~ c ~ co ~ en -g ~ ~ ro C Ol 2 8_.~ ~al ~ > C/l ~ :2:~ .E ~,g ~ -00 ro Ola a. enO~ Q) 6%~ g .!!1 Ol ~ ~ ~~ Ol Ol E~Q:) ~ O~J:: ~ 001- "" o >. ro a. Ol U ro o I'- I'- C') C') ~ u:: <0 0 <0 Ol 0 0 <0 "<t LO ro cD 0 CO Ol 0 ~ N "<t 0 CO "<t LO 0_ Ol 0 Ol >< 0 ~ 0 Ol 0 ~ N 0 N CO Ol "<t "<t LO 0 C') ?i .0 oj 0 <0 "<t 0 C') N C') C') "<t "<t C') LO_ N_ 0 I'- N N I'- N 0 C') 0 N 0 CO 0 CO N 1'-- C')_ e <0 N 0 C') N 0 I'- N 0 0 0 0 25 oj 0 N 0 N 0 N LO 0 "<t_ m I'- Ol N Ol ~ ti Q) f/) Q; c .~ vi Q) c 0 J::: E a. vi Q) 0 u; C') >.0 CL f/) N .2 Q) 0 c 0 >.0 N _J::: .2 'S; a. U ~ Q) 2 Q; c CL ..Q C u:: 0 0 -" () > (;; -" Q) 0 :5 0 5 '0 .8 Q) c c c c 0 0 a f/) 0 'iij Q) 'w Q; "E5 -0 c 'S; ro > f/) f/) 0 a. c Q) Q) 0: x 0 2 0 UJ 0 0 ~ f/) Ol J::: Q) "<t_ C :; LO 0 (;j I'- E Q) C') LL C 0 '0 N -0 .~ <( > Q) <0 .~ (;; ~ f/) N_ 5 co Q) -0 C') f/) (;; ro ~ Q) :r: t; Iii .~ :B - c ro ~ ro u; ..Q :J f/) C Q) Q) f/) ~ E Q) .. 0 .9- e> c c :J ro 0 0 lJ J::: ~ 'w UJ 0 c Q; 0 Q; ro > () a. c f/) ..Q X 0 0 u:: UJ 0 f/) 'w >. Iii c <( u; o o lco l~l !;20 :g ooq-- oooq- N 1.(0) 000 __ 0)_ ooq-I.O gooq- N o ooq-O Oooq- -- - (")N Oooq- o N I 1 I I I II o (")0 00 -- No Oooq- o ("'.I 00 I'- (") (") ~ u::: - CIl -0 ~ Cii CIl -g 1il 0 CIl c ....._ .- (/) X E O)~ 0) t) .~ (/) 1il 'C 2:: 0) >-1:) 0) C (/) 0) (/) 0 ><Wo)..c a:l co. 0...-000. C~-E.O ~ .8 ..... 0) (/) C2-o 0) 0) c .::;: -0 o 0) 0 ..... 'QOc..E 0) (/) ~.~ (/) 0) .- 2:: 0) t) '2 0) 'V5 '2: .EU)_~~ 0) 1il 0 Ol t) CIl t) C (/) CWO) .- 0) CIl (/) -0 c C=O)..::!..c 0) CIl ..c t) t) CII-CCll (ii ~ .(/) E cEO~C"E o 0) 0 0) CIl :;:::::;.....-:;:::::;Et) o.CIlCllCllt:_ 'C $: I 1il CIl '6 Vl "E >,.0 0. 0) 0) CIl +--. ::J 0) ..... OIOU)-ot) 0)0 -00 CIlO ..... co- Oll'- :3-N 0) ..... CIl $: "E CIl I - >- - o (/) 00 >- Cii c <:( - (/) o o - c 0) E 0. 'S 0- W >< L I~I I I I I - - - (/) '00 CIl .0 ..... CIl 0) >- CIl ~ 0) 0) $: N 1.0 ~ 0) 0) $: CIl (/) >- CIl -0 I'- -- ~ ..c ooq- N CIl -5 0) :0 ..S!l '(ii > CIl (/) 0) t) '2: 0) (/) 0) c o ..c 0. Cii :;:::::; C 0) .. (/) c (/) o 0) ~ ~ C-o ..S!l .::;: 0.0 It.til~ ~LO ina 000- aOl N Ol L[)"- 00_ ~"- 00 a~ N "<t<D 0"- ?5 0')- a~ a~ N~ ("')L[) a;;) C\j 0')- 8"- N N:g 1200 o <D- oL[) N o o~ 06XX 8("') N 000 a~ m U1- 8lN ~ o 00 ("') ("') ~ u:: w 'w >- Iii C <( 00 o o w w w w Ol Ol () () () () ro ro -g-g 5 5 IDID C C Iii Iii C C ID ID xx Ol Ol g g 0 ~ ~-(Jfui 00 ~ a> ID ~ ID 0 ~~~~~ 0.. 0.. ID 0.. (; -o-oZ-05 5~~.8~~ ~()()~()~ oo...o...~o...ID w L[) 0 Cl 0 ~~~g-g;E w Ol :; ro Ol LL '0 -0 <( Ol8 roo 56 il:'L[) ON (/) Iii :;:; 'c Qi > o Z xx C .!!! U Ol ro 5 Q) C J:: Cl :J o :5 xxx o weD 2 Ol .~ ~ o..ID -oZ ~.8 W Ol 0-0 0... ~"~ 8 ~~ Ol:J~ xxx W Ol () '2: Ol (/) ~ o t5 ~ is ZQi [L > > 0 oZ -0 C Ol > Ol o E ~ ~ .2 ~ 00-= ~..Q Ol ro C c.. 00 ";;:: co a> c.. 0 "2 -0 C <:: COOl co C 00 <'3 a'ii: [LOl> ~~ID o"~ 00 ~(/):J XXXXX ~~ N ~ U1~~U1 L[)eD~~eD eD.~ 2 ~ ~ ~5>-~o 5g.EOl5 IDe~~~ z(9~[]JN .8.8.8.8.8 Ol Ol Ol Ol Ol ""C ""C ""C ""C ""C ~ ~ ~ ~ ~ C) C) C) C) C) c.. c.. c.. c.. c.. :J:J:J:J:J ui- Ol ro -0 a. :J Ol- ro 5 iI:' o W :5- .8 W :J Ol - 1: Ol o C ~- o 5 -0 C ro 0- <D ~ "<t Ol ("') <17 COO o 8 t5""C ~"S ~ ~ 00 5 o Ol () C Ol Ol () W ~ :J Ol >- c~ "co ~ E :; Iii () Qj Ol >5-E o Ol Ol C ro E ro 5 Ol l..... ~ ~ .EoC) W ro ~a>a> ""C~o "S: a> ~ e ~ C c.. 1:: a> C)oc C :s "co .~ a. E Ol 0 .2 I- c ~ ""C en :s ~ c 0 ro Ol Ol ..Q~:5 IDa>+-- W ~ :J :J ~ ~ .8~~ ClCOO cro<D "~ ~ co_ .~ ~ d'; -ro~ -oE<17 ~a>w ~~8 ~ ~~ 0-0 0 C ~ 5 E Ol w 2; E .go a> t)a>w ~ Co ~ ~~c o :J ~ C) 10 :s "~~ 0 c(ij:S Ol C 0 ~~.8 O:::-oW o~~ Ol ~ c~-g ~ o C co :J ~.c~~ c.B\u\U ~ '3: ~ 5 ~oo~'E UJ<(:J(/) coCXJ a"<t _CXJ L!) - aN a"<t N L!)~ a'" -"- "<t - a~ a"<t N "<tL!) aCO _N '" - 00 a"<t N ",a 00 _a ~6 a'" N NO 00 ;:::0 06 ON N ~ CXJ '" '" ~ u:: ..t o o N ~ -g, ~.g e Lt)~ ro ~ N o..wa Ol _ 0 o eN co 2 c g>~-o -l (/) ~ -0 'c -0 ~'E ro ~~ ~ ro (/) 5: ~.~ Q) () :t::: .~ Ol :;::; :t: (/):JO Z' x- Jf) .- co l..... o I- ~ ~ t- ~ ~ ~ co ~02 5: >- "'C co :t::: Ol 0.. 0 t.~ Ol j9 c ..c (/) :J - t)2-g .!!1, oi ro e.~ ~- (L ID ~ OJOlE c.~ Ol OJ OJ OJ roCro E w_ ~ 6 Ol ~ 2 ~~:o ~ "5 t 0... E ::l 3l Ol '0 ojii:tf ::l8 ~a ..a 0- roO Ol'" LL "0 -0 <( ~8 roO ~ 8- o~ (/) (/) 'w ~ ro c <( 1i) o o ro E .E: Ol J:: () if Ol (/) ro -l jB ci> () c Ol 'w "Dro ~J:: o..() 5: :s Olo... C-o ~ c .E ro (/) Ol 0 -0 ~ .- >- > ro eo... 0.. _ -0 OJ c .~ ro- c 0::: :J :r: 8 -0 () c<( ro - Ol ~:n I- ~ o ro -0... 2jB c c Ol :J E 0 Ol () () () c<( ro - J:: OJ C C Ol 'c Ol c -0 ro :J- _0... () - .~ ~ (/) .- ~& .0 l....- ~ Ol 0.._ ~~ o N >- - ~ c ro Ol.15 ~ .- :s-l o c o o o ~ N ui -0 Ol Ol c OJ c 'm ro .~ Ol N :;::; 'C o .~ -0 c ro (/) (/) :J () .!!1 -0 .8 .l!l Ol Ol E Ol Ol =!:! E E o () c OJ o c ~ g> ~ .~ o..c ~<( N 00 c:0 c:0 W LL CD 0 .... 0 0 C ....... 0 W L!) L!) E 0 0 c:0 I ~ N 0 ro L!) c 0 0 ro ....... 0 X E "<t N 0 c:0 U 0 ij:; N "<t 0 jg 0 0 ..... ....... a_X w c:0 -e 0 c:0 0 N W N C) c:0 0 W 0 0 :5 ....... 0 N L!) -a 0 c 0 ..-- ro N E- w I~ en .... E I ~ Ie c -a .- ::::l ..c t S 0 0:: 0.. 0 0.. ::::l E- en en W c ~ 0 ~ en .... c W W 0.. E 0 I ~ >- u ro c c w ro e> E w Q) E w ~ ....- en c 0 W 0 -g EO) 0) ro w 0 .8 0 0).... roN 0 w c . ..t t roOO ro E E E 0 Q) e e E - en - W en W (/) ~ ro 0 2: (/) 0) ~ ~ en c c ..... <( <( w o 0.. "2 ~ o..w w ro-a -a 0 "5 E ~ ~ ~ en(/) 0) 0) 0 w- 0.. 0.. 5: 0 C) :J :J en en ~ ~ 0 ::::l I~ co w 0 LL - en "c "E -a <( ro I ~ 0 .....- CD ro L!) ro 5: L!) c <1= c:0 .Q 0 ..-- en (/) :> - ro .8 :E c en - W u ro 't: 2 c w -a 'S;: 0 clc .Q en .... w ro-a - c ro ro ..... 0:: ~g (/) W W:J en en ~ ro c <( .... en o o Ol <D 00 0 N_ iD "- a ~ 0 ~ N 0 I[) 0 0 I[) ~ "-- a ~ 0 ~ N I[) "<t N 0 "<t (Vj Ol- 0 ~ 0 ~ N 0 ("')0 e U1_ NN a~ 0 ~ N 0 NO Q 0_ ~<D aOl 0 N <D ~<D !20l o - a~ 0"- N ("') 00 ("') ("') ~ u:: en C/l Ol ~ ~ ~ s: ~.r: ~ :z ~ ~ Ol Ol ..... (iif; >- '5':::: ..0 > :; '2'ro 0 210 Q) :J 0 C/l 0..__ ro_ E Ol J:: C/l o.:::s::: a. a> o ~ 0.2 roo.. :;~ rorn ~(j) o:!: ~.Q Q).~ Q)"'C =0 J::ro -gro ~~ ~:2 ~~ Om 5~ 00 >-0.. 2 2i' g> Iii ~~cng~ roO~-5Q) (/) ro .2 Ol c:> ~ "S; ~ 0 ;;; ..ct>a..a::: ~~~oo.. .,:;00C:> ~OlEOlo --2 cn..c-- Cf)l....c-"O ~~:ge~ e E~8o a.oro~E cQ)O~l....e .Q .~ ~ co m :;; E-Q)06~2 O~~E~~ ~ :E ~ :g .~ ~ OI-_roLLo<: C/l 'w >- Iii c <( 00 o o Ol ro 5 "E ro :r: Iii c o :;:; '6 -0 <( w C/l Ol ~ s: I- o<l ~ >- ~ E g ro :; Cl c o C/l C/l C/l E~ Ol Ol ""C .: Os EI- ~o<l 0..1- c:><( Ol E ~ 0 LL.l:: -" C/l . ~ -0 C/l o l..... C 5 0 Ol Q) ~ E ZO:::1:: ~-oro Olea. ~ro~ E Cl J:: c_ o .- 0 o ~:: >-roo ""2 o -6 Ol Cl.- c- ..c ._ co -J::E o () ~ --0 C/l ro _ (f) g-.~ 80.8 ro >- C/l - C/l cn~Q) C/l ro () ~(/)~ .~ .2 Q) 5:n E O:J:;:; oo.....!. ~~m >-- - 0 Cl Ol _ c ro~~ (/) Ol > o 0 e -()a. -g ~ ..0>- 0.. () ~.~ ~ +-,""CU: C/l Cl-o ~~ffi 6 .E ~ 0.. 10 ~ .. Ol >-~ C () ..0 :2 .~ ~ '0 ~ Ol Ol E co en f; Q) c...~ ""C en x..cc>. UJl-roC/l o ~ ~- LOCO o"<t o~ N o ~ ~- ;;rOl 0C') O~ N N ;g ~- (;)0 O"<t O~ N o C')O 00 N IJ)- ON O~ N o NO e ~- O"<t O~ N Ol o <0_ 23 LO o CO o N N "<t CO C') C') ~ u:: o 23 N8 eN o .~ ~Ol .~ <0_ f/)LO c~ Q)yt E Q) t:: ~ [~ ~ 5 ~~ u::: 0 f/) -0 f/) C :J ro 0 Q) "S: .~ Q) & a. IDS :5 f/) .22 f/) Q) C () o C ~ ~ o Q) f/) C ~'iij Q) E m ~ ,g ~ c..QiI:' o :J 0 :.;:::; a. (/) .9-"'C m <3 .~ :J (/) ~ c Q) C C O:J<( "<t ~C') ~~ '5 ~_ (/)~ f/) 'w >- Iii C <( u; o o ro :E .E 'iij C o 'w :> >- Q) me f/) C .~ Q) :n > :J Q) a.Q) N:5 ID .~ i= f/) Q) .~ E C o Q) f/) Cl -0 ro C Cl ro C ~ 0 E "m Q) m c ~ (/) .~ Q) .~ :> = g Q) Iii .:g ~ ~ "'C C ~ Iii~ ~~ ~ ~ 'E "S: ~ 5 a... If) ~ t) ...: ~ m Q) ~ <(c .~ "'C E c .E <3 m 0 ~ .2 E .,... Q) ~ _:E .~ E <::5 a.:.c; >0 ro Cl f/) ro 0 () C IDa. -;.E! m ~ ";:n .~ m "'C m 0 "m :J 2: 0 n:s"'C;"'::'0 ~~ ~:5 EOlID ~~ ~ '-' ~ Q)_ Q) ~ ~ 0.2 -- 0 ~~ ~o.. 'S; ~ - - 0 Q; - - ,.. e-'- .!:Q 15 E 3: ~ 2 ;...::, .g ; 5~ oU) cuU).:!2a.c ~ ~ ~ .:- ~ ~ ~ ~ ~ ~-m "'0- O~N~~ Q) Q) C LL a..- >. m 0 ~rn ctI_"'O a.-g:CON _ ~ .!:Q ~ ~ ~ g 0 N >- ~ _ ~ - - C Q) - - it) .- .~:E ~ -- co c .0 ~ .~ it) t:: """ 0 "C C g C .- 0 lti 8.. "'C "C a. Q) "E~ LL_a... gg-~a.o g- ~m ~..c ~(/)(/)<DN Q) .~ m u:: ~ ~ Q) m .:!!. If) 3: D:::Q) Q)l... -Eo~m() Q) Q)-= ~.E 60 E oc t)>.~~ :.;:::; .~> ~ a... 0 .s :J t:: >- ~ Q) Q) 0 .- a. () .- .. ~. :5 a. E '0 ~ :J Q) .g .2 .~ ~ co -g g it) ~ ~ 0.. .~ ~ <9_ ~ .~ 5 ~ 5 ';; @. 0 :J ~:.c; a.E OQ)_f/) E- "> m E Elf).... = ~ m Q) "'0 ~~ 88~ ~mQ)o~ ~ C 0 ::::Q)Q) .A'"C ~ lo... > (j) +-' "m ID ...... 0 Qj.E ~ ~ ~ .~ C> C "E ~.~ .g ~:E;' .~ ~ ~!~ ~Ii ~~~~. ~ l~! ~~~~ ~ilii~i ~ [~i jtii& li29Q) ~ EE_ %~_~ ~~~I~ Q) 8~g ~~g~ &~ro~M ~ ~ ~ ro f/) .!,1 :n :J a. f/) C o ~ Q) :J lJ 'w :5 .2 Q) .J::: o o Q) (;; 5 '5 f/) f/) Q) :J f/) .!!1 Cl C :;::; o a. ~ '0 Q) E :;::; .~ ~ :J f/) lJQ) ~=o o (;; CL Cl ~ Q) () C "S; 0 QiU f/) ro f/) Q) ti > Q)ti ~ ~ >-0 Q; () ID 2 > ro ~~ E ~ .~ C o ~ 2 (;j Q) ~ -0 Q) E .~ Cl C :~ ~ ~ rr :J U ~:E ~ f/) .B E ro ";:n Q) Q) B ~ C- ~ .S: C .2 ~ m m ~ m ~ ~ ~ B g -g ~ 0 .E 0 ~ 2:oom -gtf ~ e Q) C ~ 2 Q)-.O' m c~~ ~ ~ ~ ~~~ ~o ~ ~~-~ ~~ ~ .c C ~ ~~ E ~ --- ~ - ~~~ ~~fK~~ ~ ~E~ ~"Ern~ ~ o m C Q) m 0 ~ () a. :J a. 1: a.';;' 0 :S "0 ~ ~ .E ID:E .2 C 5 .2 ~ - ~ (; 1:) Q) 0 1:)~~ +-' g Q) 0.- c- ~mm 2-g~~.2 "O~~ mo..~2:SQ) ~~~ ~m8.s O)~ ..QQ)Q) ~ooCf.) cE o.cm 0 +-' +-' ~ ~ ~ .~ ~ -g ~ i ~ o ~ 0 ~ Q) ~ 0 .~ ~ ~+-,o m~"O~ >>0) m.8.8 ~a.cQ) +:;C ~ ~ Q) ~ 0 m > ~ .~ t::a...:c g(;)~~ 0"0 8..8~ :Bo~m~-g ~"O::J -gcmg- O)+-' Q) C 8 ~ ~ .c~ .~ ~ ~-g5 0 o~ ~ I f ~ .r i ~ ~ ~ ~ g-m.g-* ~O)E~ ~~ ii5 ~~0' f/)E~-g~ O:J 3:(;)C Q)Q)::J o..~ ~~~~ :c~~~ o~ E~~a. ~ ~~a. ~ ~ >- f; :;::; ~ '2: ~ ~ :g .:go8~ a:~<(~ ~O: P.C. COUNTS 2005-06 BUDGET CliENT ,Tn"^' 'jl 'V ~jl 'Vet C<:G fie rMl M cT"vr" .GOV Al [T 'r; Ph V. "GP ,RK ,RK IRK 1P ;r"T'RP '( 'l T"K w w S.W. "1 S.W. SW. 'A PPR 6- y",,, REUSE T"IT' 1M' '^ IV. 10 '^ IV \\ 3AFET ,HTM "OTAL PC CNT 20 4 6 5 22 1 1 7 7 4 8 9 8 15 5 18 5 7 50 17 2 57 9 21 20 2 11 53 117 22 3 18 4 7 7 3 38 11 18 142 7 11 11 5 7 5 5 3 6 3 3 9 4 8 10 1 3 4 8 4 5 4 8 46 3 2 4 8 6 10 997 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Management and Budget ACM: Kathy DuBose SUBJECT Consider adoption of an Ordinance adopting the Budget and first year of the Capital Improvement Plan of the City of Denton, Texas for the fiscal year beginning on October 1,2005, and ending on September 30,2006; and declaring an effective date. BACKGROUND Please find attached an Ordinance to adopt the 2005-06 Budget as directed by City Council. The City Council received the 2005-06 Proposed Budget on July 30, 2005. A Budget workshop was held on August 8, 2005. Finally, the Public Hearing on the 2005-06 Proposed Budget was conducted on September 6, 2005. The tax rate used to balance the General Fund budget is $.60815 per $100 valuation. FISCAL INFORMATION The total 2005-06 budget is listed below: General Fund Electric Fund Water Fund Wastewater Fund Solid Waste Fund Technology Services Fund Materials Management Fund Motor Pool Fund Fleet Management Fund Aquatics Fund Recreation Fund Tourist & Convention Fund Emily Fowler Library Fund Police Confiscation Fund General Debt Service Fund $ 69,921,911 173,216,026 38,536,098 23,496,101 15,585,607 6,319,775 6,230,279 4,558,706 4,421,888 1,879,167 1,317,139 1,078,755 156,737 115,500 10,629,427 $357,463,116 Respectfully submitted: Kathy DuBose Assistant City Manager S:\Our Documents\Ordinances\05\Budget 2005-06 Ordinance.doc ORDINANCE NO. AN ORDINANCE ADOPTING THE BUDGET AND THE FIRST YEAR OF THE CAPITAL IMPROVEMENT PLAN OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2005, AND ENDING ON SEPTEMBER 30, 2006; AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the budget for the City of Denton, Texas, for the fiscal year 2005-2006 was heretofore published at least ten days in advance of said public hearing; and WHEREAS, a public hearing on the said budget was duly held on September 6, 2005, and all interested persons were given an opportunity to be heard for or against any item thereof; and WHEREAS, on 27th day of June the Public Utilities Board recommended the utility operations budgets and capital improvements to be constructed during the coming year; and WHEREAS, the City Manager has furnished a copy of the Planning and Zoning Commission's recommended general obligation bond capital improvements to each member of the City Council more than sixty days prior to the beginning of the budget year, as provided by Section 10.03(6) ofthe City Charter; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The budget for the City of Denton, Texas for the fiscal year beginning on October 1,2005, and ending on September 30,2006 prepared by the City Manager and filed with the City Secretary, as amended by the City Council, is hereby approved and adopted, a copy of which budget is attached hereto and incorporated by reference herein. SECTION 3. The City Council hereby appropriates from available resources to the following funds: General Fund Electric Fund Water Fund Wastewater Fund Solid Waste Fund Technology Services Fund Materials Management Fund Motor Pool Fund Fleet Services Fund Aquatics Fund Recreation Fund Tourist & Convention Fund $69,921,911p173,216,026 38,536,098 23,496,101 15,585,607 6,319,775 6,230,279 4,558,706 4,421,888 1,879,167 1,317,139 1,078,755 .. S:\Our Documents\Ordinances\05\Budget 2005-06 Ordinance.doc Emily Fowler Library Fund Police Confiscation Fund General Debt Service Fund 156,737 115,500 10.629.427 Total $357,463,116 SECTION 4. The City Council approves the first year of the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2005-06 budget. SECTION 5. The budget includes certain unlisted, authorized and lUlpaid encumbrances from the prior fiscal year to be carried over to the 2005-2006 budget as determined by the City Manager or his designee. SECTION 6. The City Manager, or his designee, is hereby authorized to transfer the amolUlts of money for employee benefit and salary adjustments as contained in the 2005-2006 budget to the various departments. SECTION 7. The City Manager, or his designee, shall cause copies of the budget to be filed with the City Secretary and County Clerk of Denton COlUlty. SECTION 8. 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 YMIzf~ BY: PAGE 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance levying the ad valorem tax of the City of Denton, Texas, for the year 2005, on all taxable property within the corporate limits of the city on January 1, 2005, not exempt by law; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. BACKGROUND Please find attached an Ordinance to adopt the ad valorem tax rate for 2005. The proposed rate of $.60815 per $100 valuation is used to balance the 2005-06 Budget and has not changed from the current rate. PRIOR ACTIONIREVIEW Public Hearings on this tax rate were held during the September 6, 2005, and September 13, 2005, City Council meetings. The proposed tax rate is included in the Proposed 2005-06 Annual Program of Services. FISCAL INFORMATION The proposed property tax rate should generate $29,126,595 of which $20,559,837 is budgeted to support general fund services and $8,566,758 is budgeted for debt service. ~Res.pectfullAY s~b~mit~ed: : ~ ; .', ", \:.'_.,- - ~ :" . t '"0 ~ I ~ . _ -_ _ __ ;iII~. ,.,. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\OrdiIiances\05\ad valorem tax.doc ORDINANCE NO. AN ORDINANCE LEVYING THE AD VALOREM TAX OF THE CITY OF DENTON, TEXAS, FOR THE YEAR 2005, ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 2005, NOT EXEMPT BY LAW; PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL EXPENSES, AND FOR INTEREST AND SINKING FUND ON OUTSTANDING CITY OF DENTON BONDS; PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLECTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after notice of two public hearings on a tax increase were published and posted on the home page of the City's website as required by law, on August 28, 2005 and September 4, 2005, the City Council held two public hearings on a proposal to adopt a tax rate of $0.60815 per $100 valuation which would increase total tax revenues from property on the tax roll by 5.2% and the statement showing the effect of the proposed tax increase was included on the home page of the City's web site any additional notices and actions were completed, as required by law; and WHEREAS, at the end of both public hearings, the City Council passed a resolution setting the meeting on which it would vote on the tax rate and announcing that it would vote on the tax rate at its September 20,2005 meeting, which resolutions specified the time and place of this meeting in accordance with the law; and WHEREAS, after the public hearings and before the September 20, 2005 meeting, the City Council recorded its vote and published a Notice of Vote on Tax Rate in accordance with the law; and WHEREAS, the City Council deems it in the public interest to adopt a tax rate for the 2005 tax year; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. By authority of the Charter of the City of Denton, Texas, and the Laws of the State of Texas, there is hereby levied for the year 2005, on all taxable property situated within the corporate limits of the City of Denton on January 1, 2005, and not exempt by the Constitution and laws of the State of Texas or municipal ordinance or by Sections 5,6, and 7 of this ordinance, a tax of $0.60815 on each $100 assessed value of all taxable property. This tax is expected to increase total revenue from properties on the tax roll by 5.2% over 2004 tax revenues. SECTION 2. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX .RATE. THE TAX RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $30. SECTION 3. Of the total tax, $0.42928 of each $100 of assessed value shall be distributed to the General Fund of the City to fund maintenance and operation expenditures of the City. S:\OUf Documents\Ordinances\05\ad valorem tax.doc SECTION 4. Of the total tax, $0.17887 of each $100 of assessed value shall be distributed to pay the City's debt service as provided by Section 26.04(e)(3) of the Texas Property Tax Code. SECTION 5. Pursuant to Article 8, Section I-b of the Texas Constitution, and pursuant to the provisions of Section It.B(n) of the Texas Property Tax Code, one-half percent of the assessed value of residential homesteads, or $5,000 of the assessed value of residential homesteads, whichever amount shall be greater, shall be exempt from City ad valorem taxes. SECTION 6. Pursuant to Article 8, Section I-b of the Texas Constitution., $25,000 of the assessed value of residential homesteads of persons 65 years of age or older shall be exempt from City ad valorem taxes. SECTION 7. Pursuant to Article 8, Section 1-b of the Texas Constitution., $10,000 of the assessed value of residential homesteads of disabled persons shall be exempt from City ad valorem taxes. SECTION 8. For enforcement of the collection of taxes hereby levied, the City of Denton shall have available all rights and remedies provided by law. SECTION 9. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or the application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 10. 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: rMif;J!1u4 PAGE 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Fiscal Operations, Tax Department ACM: Kathy DuBose SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas, approving the 2005 Tax Rolls; and providing an effective date. BACKGROUND Please find attached an ordinance to approve the 2005 tax roll. The approval of the tax roll is an annual process required by the Texas Property Tax Code. The Tax Roll is calculated by taking the 2005 Certified Appraisal Roll (excluding property under protest) and applying the 2005 adopted tax rate. The anticipated collection rate is 100%. FISCAL INFORMATION The approval of the Tax Roll will enable the City to mail tax bills October 1, 2005. ~lY submitted ". . flta- . .. : -' . ;;,< . . . ~. , , . =- ~ . .... -. Diana G. Ortiz Director of Fiscal Operations L,'Dut~5\iaxroll.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE 2005 TAX ROLLS; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the 2005 tax rolls of the City of Denton, Texas, which will result in a tax levy in the amount of $29,126,595 based on the Certified Appraisal Roll as approved by the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK., MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 1JJfrl ~. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 2004-386 FOR ELECTRIC SERVICE; AMENDING THE LOCAL GOVERNMENT SERVICE RATE (SCHEDULE Gl); AMENDING THE WEEKEND RATE (SCHEDULE WK); AMENDING THE ATHLETIC FIELD RATE (SCHEDULE AF); AMENDING THE FACILITY CHARGE ON THE STREET LIGHTING RATE (SCHEDULE LS); AMENDING THE TRAFFIC LIGHTING RATE (SCHEDULE LT); AMENDING THE OTHER LIGHTING RATE (SCHEDULE LO); AMENDING THE FACILITY CHARGE ON THE SECURITY LIGHTING RATE (SCHEDULE DD); AMENDING THE FACILITY CHARGE ON THE DOWNTOWN DECORATIVE LIGHTING RATE (SCHEDULE DDL); ADDING THE DECORATIVE STREET LIGHT RATE (SCHEDULE DSL); AMENDING THE TEMPORARY SERVICE RATE (SCHEDULE Tl); AMENDMENT OF SEVERAL PROVISIONS OF THE ENERGY SA VE PROGRAM TO CLARIFY THE MEANING THEREOF (SCHEDULE EP); ADDING A DARK FIBER RATE (SCHEDULE DFR); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1 . That the Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: RES RG GSS GSM GSL TGS Gl WK AF LS LT LO DD DDL DSL Tl ELECTRIC RATE SCHEDULES PAGE Residential Service Residential Renewable Service General Service Small General Service Medium General Service Large General Service Time of Use Local Government Weekend Athletic Field Street Lighting Traffic Lighting Other Lighting Security Lighting Decorative Downtown Lighting Decorative Street Light Temporary Service Schedule 3 5 7 9 11 13 16 18 20 22 23 24 26 28 29 31 1 EXHIBIT 1 IDR EP UPS ECA UD DGR SFR DFR Industrial Development Rider EnergySave Program Uninterruptible Power Supply Energy Cost Adjustment Discount Rider for State Universities and Colleges Distributed Generation From Renewable Sources Rider Special Facilities Rider Dark Fiber Rate 33 34 38 39 40 41 43 44 2 SCHEDULE RES RESIDENTIAl, SERVICE RATE (Effective 1 % 1/05) APPI JCA TION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE WINTER SUMMER Billing months of November through April Billing months of May through October (1) Facility Charge Single-Phase Three-Phase $8.25/bill $16.50/bill $8.25/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 KWH Additional KWH 5. 70~/KWH 3. 79~/KWH All KWH 5. 70~/KWH plus; (3) Energy Cost Adjustment Charge See Schedule ECA See Schedule ECA MTNTMT JM BIT J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Three-Phase Facility Charge Facility Charge 3 ENERGY C:HARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block TYPE OF SER VTC:E The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 4 SCHEDULE RG RESIDENTIAL RENEW ABLE ENERGY SERVICE RATE (Effective 1 % 1/05) APPTJC:ATTON Applicable to any Customer for single-phase electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE WINTER SUMMER Billing Months of November through April Billing Months of May through October (1) Facility Charge $8.25/bill $8.25/bill plus; (2) Energy Charge per billing period First 600 KWH All Additional KWh 5.70~/KWh 3.79~/KWh All KWh 5. 70~/KWh plus; (3) Renewable Cost Adjustment Charge Variable, see below Variable, see below MTNTMl JM BIT J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Facility Charge 5 ENERGY C:HARGE Billing for the energy charge shall be based on actual KWh consumption during the billing period. Energy Charge = KWh in rate block x rate per KWh in rate block RENEW A HI ,E C:OST A nIT TSTMENT (RC:A) C:H A RGE The Renewable Cost Adjustment Charge shall be based on actual KWh consumption during the billing period. RCA Charge = KWh x Renewable Cost Adjustment The Renewable Cost Adjustment shall be computed during the last month of each fiscal year quarter (December, March, June and September) to be applied within the following quarter. The City shall in no case change the Renewable Cost Adjustment more than once in any three (3) month period. The Renewable Cost Adjustment shall be calculated using the following formula: Renewable Cost Adjustment = (Renewable energy credit and/or purchased energy cost shortfall or overage for current quarter + Projected renewable energy credit and/or purchased energy cost for next quarter)/Projected KWh sales for next quarter In the event that actual plus estimated cumulative costs of renewable energy credits and/or purchased energy are greater than or less than the actual and projected renewable energy revenues by $100,000 or more during the next quarter, the Director of Electric Utilities or his/her designate shall recalculate the Renewable Cost Adjustment and, with Public Utilities Board approval, may establish a Renewable Cost Adjustment that collects or returns such difference during the next three month period. Such change in the Renewable Cost Adjustment shall be applied during the next three-month period. TYPE OF SER VTC:E The City will supply single-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 6 SCHEDULE GSS GENERAl, SERVICE SMAIJ, (Effective 1 % 1/05) APPI .If: A nON The General Service Small (GSS) rate is applicable to any commercial or industrial customer having a maximum demand of less than 20 KW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month exceeds 20 KW, billing will be made under the Rate Schedule GSM and Customer must remain on the GSM rate for a minimum of twelve (12) billing periods. Not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE (1) Facility Charge Single-Phase Three-Phase $15.80/bill $21.10/bill plus; (2) Energy Charge per billing period First 2,500 KWH Additional KWH 7.02~/KWH 3.67~/KWH plus; (3) Energy Cost Adjustment Charge See Schedule ECA MTNTMl JM BIT .I JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Three-Phase F acili ty Charge F acili ty Charge ENERGY f:HARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block 7 TYPE OF SER VTC:E The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 8 SCHEDULE GSM GENERAL SERVICE MEDTIJM (Effective 1 % 1/05) APPI JCA nON The General Service Medium (GSM) rate is applicable to any commercial or industrial customer having a maximum demand of at least 20 KW in anyone of the previous twelve (12) months but less than 225 KW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE (1) Facility Charge Single-Phase Three-Phase $15.80/bill $21.10/bill plus; (2) Demand Charge $4.00/KW (all KW) plus; (3) Energy Charge (GMl) per billing period First 6,000 KWH Additional KWH 4.43~/KWH 3 .66~/KWH plus; (4) Energy Cost Adjustment Charge See Schedule ECA MTNTMT JM BTI J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 9 DETERMTN A nON OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual monthly KW demand as measured during the fifteen (15) minute period of maximum use each month; or (2) Seventy percent (70%) of the maximum monthly actual demand for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block PRTMARY SERVTCE DTSCOTJNT Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive a Energy Charge discount of 0.3~/KWH (GM3). Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage shall receive an Energy Charge discount of O.I~/KWH (GM2). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SER VTCE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 10 SCHEDULE GSL GENERAl, SERVICE I,ARGE (Effective 1 % 1/05) APPIJC:ATTON The General Service Large (GSL) Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 KV A or 225 KW for all electric service supplied at one point of delivery and measured through one meter. Customers with an average actual demand equal to or greater than 200 KV A or 180 KW during the previous twelve month period may be allowed service under this rate, subject to the minimum billing provision. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE (1) Facility Charge $65.55/bill plus; (2) Demand Charge $933/KV A (Minimum of250 KV A billed) plus; (3) Energy Charge (GLl) per billing period First 200,000 KWH Additional KWH 2.14~/KWH 1.21 ~/KWH plus; (4) Energy Cost Adjustment Charge See Schedule ECA MTNTMl JM BIT J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 11 DETERMTN A nON OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly KV A demand as measured during the fifteen (15) minute period of maximum use each month; or (2) 250 KV A; or (3) seventy percent (70%) of the maximum monthly KV A actual demand for any month during the previous billing months of May through October in the twelve (12) month period ending with the current month. ENERGY C:HARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block PRIMARY SERVTC:E DTSC:OIJNT Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive an Energy Charge discount of 0.3~/KWH (GL3). Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage shall receive an Energy Charge discount of O.I~/KWH (GL2). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SER VTC:E The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 12 SCHEDULE TGS GENERAl, SERVICE TIME OF IJSE RATE (Effective 1 % 1/05) APPI JCA nON Applicable to any customer having a minimum demand of 250 KV A for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHT Y RA TE (1) Facility Charge $76.45/bill plus; (2) On-Peak Demand Charge $11.87/KV A plus; (3) Off-Peak Demand Charge $234/KV A plus; (4) Energy Charge (TG 1) per billing period 0.71~/KWH plus; (5) Energy Cost Adjustment Charge See Schedule ECA MTNTMl JM BIT J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Off-Peak Demand Charge plus; 13 (3) The On-Peak Demand Charge DEFTNTTTON OF ON-PEAK HOTJRS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September. The City's on-peak hours may be changed from time to time and the Customer will be notified twelve (12) months before such changes become effective. DEFTNTTTON OF OFF-PEAK HOIJRS The City's system (off-peak) hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. DETERMINATTONOF ON-PEAK DEMAND The demand used in calculating the On-Peak Demand Charge for the billing period shall be the greater of: (1) The KVA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-peak hours as recorded by the City's demand meter, or (2) One hundred percent (100%) of the actual maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. The On Peak Demand Charge will be applied to each billing period. DETERMINA TTON OF OFF-PEAK DEMAND The demand used in calculating the Off-Peak Demand Charge for the billing period shall be the actual KV A demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The Off-Peak Demand Charge will be applied to each billing period. DETERMINATTON OF DEMAND RTLLING FOR C:TJSTOMERS WTTH NO PEAK DEMAND HTSTORYDIJRINGOFF-PEAK MONTHS If the Customer is new or does not have a history of on-peak use for June through September, and elects to come on the TGS rate, the Customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. PRTMARY SERVTC:E DTSC:OIJNT Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive an Energy Charge discount of 0.3~/KWH (TG5 and TG6). Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage shall receive an Energy Charge discount ofO.l~/KWH (TG3 and TG4). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. 14 ENERGY C:HARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH x KWH Rate TYPE OF SER VTC:E The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 15 SCHEDULE Gl I DCAI, CTOVERNMENT SERVICE (Effective 1 % 1/05) APPIJCATTON Applicable to any local City, County or School District for all electric service supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, or to temporary, standby or supplementary service. NET MONTHT ,Y RATE (1) Facility Charge Single-Phase Three-Phase $15.80/bill $21.10/bill plus; (2) plus; (3) plus; (4) Demand Charge $6.81/KW Energy Charge 3.15~/KWH Energy Cost Adjustment Charge See Schedule ECA MTNIMT JM BIT ,I ,TNeT For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, plus; (2) Demand Charge DETERMTN A TTON OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual KW demand supplied during the fifteen (15)-minute period of maximum use during the current month as determined by City's demand meter; or (2) not less than 50% of the highest monthly actual demand determined during the billing months of May through October in 16 the twelve (12) months immediately preceding the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH x KWH Rate TYPE OF SERVTCE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 17 SCHEDULE WK WEEKEND RA TE (Effective 1 % 1/05) APPT ,IrA nON Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. Not applicable to resale service in any event, or to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHT ,Y RATE (1) Facility Charge Single-Phase Three-Phase plus; (2) Demand Charge plus; (3) Energy Charge per billing period First 2,500 KWH Next 3500 KWH Additional KWH plus; (4) Energy Cost Adjustment Charge MTNTMT JM BIT ,I JNG (1) Facility Charge plus; (2) Demand Charge $20. 86/bill $26.08/bill $6.72/KW (First 20 KW not billed) 7.02~/KWH 3.67~/KWH 2. 70~/KWH See Schedule ECA 18 DETERMTN A nON OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual KW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter less 20 KW; or (2) zero (0). ENERGY CHARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block TYPE OF SER VTCE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 19 SCHEDULE AF A THI ,ETTe FIET D (Effective 1 % 1/05) APPT .leA TTON Applicable to all electric service metered at one point for use to light specified areas for athletic events. NET MONTHI ,Y RATE (1) Facility Charge Single-Phase Three-Phase $21.07/bill $31.60/bill plus; (2) Energy Charge per billing period Rilling months of Tune through Septemher Peak (2:00 PM to 7:00 PM) Off Peak (All Other Hours) 7.96~/KWH 3.98~/KWH Rilling months of Octo her through M::IY' All hours 3.98~/KWH plus; (3) Demand Charge Rilling months of Tune through Septemher Peak (2:00 PM - 7:00 PM) Off Peak (All Other Hours) $4.94/KW $1. 17/KW Rilling months of Octo her through M::IY' All hours $1. 17/KW plus; (4) Energy Cost Adjustment Charge See Schedule ECA 20 MTNTMT JM BIT J JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Three-Phase Facility Charge Facility Charge DETERMTN A nON OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the actual KW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter. ENERGY CHARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH in rate block x Rate per KWH in rate block TYPE OF SER VTCE The City will supply single-phase or three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 21 SCHEDULE LS STREET T JGHTTNG (Effective 1 % 1/05) APPT .If: A nON Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHT Y RA TE (1) Facility Charge Rate T ,uminaire Type LSA LSB LSC 100 W Sodium Vapor 250 W Sodium Vapor 400 W Sodium Vapor plus; (2) Energy Cost Adjustment Charge Rate T ,liminaire Type LSA LSB LSC 100 W Sodium Vapor 250 W Sodium Vapor 400 W Sodium Vapor TYPE OF SER VTf:E Facility f:harge $5. 15/bill $7.30/bill $9. 19/bill (Current ECA per Schedule ECA) x (Bulb Wattage Factor where the following Bulb Wattage Factors apply); RlIlh Wattage Factor 48 KWH 105 KWH 159 KWH The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 22 SCHEDULE LT TRA FFTC T JGHTTNG (Effective 1 % 1/05) APPT .If: A nON Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHT ,Y RATE (1) Energy Charge per billing period 5 .62~/KWH plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY f:HARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH x KWH Rate TYPE OF SER VTf:E The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 23 SCHEDULE LO OTHER LIGHTING (Effective 1 % 1/05) APPT JCA nON Applicable to Texas Department of Transportation unmetered and metered safety lighting systems and continuous lighting systems as those terms are defined in Texas Administrative Code, Title 43, Part 1, Chapter 25, Subchapter A, Rule 925.11. LOA (lJnmetered Lighting) NET MONTHT ,Y RATE (1) Energy Charge per billing period 5 .62~/KWH plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Bulb Wattage/lOOO) x (Hours of Operation Per Billing Period) ENERGY CHARGE Billing for the Energy Charge shall be based on estimated KWH consumption during the billing period. Energy Charge = (KWH Rate x Bulb Wattage/lOOO) x (Hours of Operation Per Billing Period) where; Hours of Operation Per Billing Period = 333 hours Bulb Wattage is the rated wattage of the luminaire bulb T,OB (Metered T ,ighting) NET MONTHT ,Y RATE (1) Energy Charge per billing period 5 .62~/KWH plus; (2) Energy Cost Adjustment Charge See Schedule ECA 24 ENERGY C:HARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH x KWH Rate TYPE OF SER VTC:E The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 25 SCHEDULE DD SEnJRTTYTJGHTTNG (Effective 1 % 1/05) APPT Jf:A nON Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHT ,Y RATE (1) Facility Charge Rate T ,1Imin::lire Type F::Icility f:h::lrge DSA DSB DSC DHA DHB 100 W Sodium Vapor 250 W Sodium Vapor 400 W Sodium Vapor 250 W Metal Halide 400 W Metal Halide $8. 14/bill $ 10. 76/bill $12.97/bill $ 12.65/bill $15.07/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DSA 100 W Sodium Vapor 48 KWH DSB 250 W Sodium Vapor 105 KWH DSC 400 W Sodium Vapor 159 KWH DHA 250 W Metal Halide 105 KWH DHB 400 W Metal Halide 159 KWH TYPE OF SER VTf:E The City shall furnish, install, maintain and deliver electric service to automatically controlled, metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) wood pole with the necessary lighting hardware and 26 overhead conductor for each installed light, at a distance not to exceed eighty (80') feet from existing lines, at no charge to the Customer. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. TERM OF C:ONTRAC:T A two (2) year contract shall be agreed to and signed by each Customer desiring Security Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the monthly municipal utilities bill. In the event that a Customer requests the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be canceled by either party upon thirty (30) days notice. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 27 SCHEDULE DDL DOWNTOWN DECOR A TTVE T JGHTTNG (Effective 1 % 1/05) APPT JCA TTON Applicable to any Customer on the perimeter of the square served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHT ,Y RATE (1) Facility Charge $4.04/bill plus; (2) Energy Cost Adjustment(Current ECA per Schedule ECA) x (350 KWH per Customer) TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City's standards and subject to its published rules and regulations. The service is provided between dusk and midnight. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. F ACTT JTY CH A RGE The Facility Charge shall be assessed on each bill rendered. 28 SCHEDULE DSL DEf:ORA nVE STREET T JGHTTNG (Effective 1 % 1/05) APPT ,If: A nON Applicable to street lighting owned and maintained by the customer. This service is contingent to an executed Special Facilities Rider between the legally responsible party and the City of Denton. NET MONTHT ,Y RATE (1) Energy Charge 5 .62~/KWH Energy Charge = (KWH Rate) x (Bulb Wattage Factor) plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DLSA 100 W Sodium Vapor DLSB 250 W Sodium Vapor DLSC 400 W Sodium Vapor DLHA 250 W Metal Halide DLHB 400 W Metal Halide 48 KWH 105 KWH 159 KWH 105 KWH 159 KWH Other - For any lamp types installed by owner that are not included in the list above, a Bulb Wattage Factor will be determined for each unique type. TYPE OF SER VTf:E The City shall deliver single-phase electric service at (60) cycles to the site for automatically controlled metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. If the City is required to maintain the privately owned lights to ensure public safety, the owner of the lights may be subject to additional service charges. 29 ADDITIONAL SERVICE CHARGES Labor (Regular Time) $60.00 minimum up to one (1) hour. $60.00 for each additional hour (to be measured to the nearest one- quarter hour). Labor (Overtime) $75.00 minimum up to one (1) hour. $75.00 for each additional hour (to be measured to the nearest one- quarter hour). Premium time to be added where applicable. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the equipment. Material Any material needed to repair and/or maintain facilities will be billed at Store's cost plus 25%. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 30 SCHEDULE Tl TEMPORARY SERVICE SCHEDULE (Effective 1 % 1/05) APPT JCA nON Applicable when a Customer requests electric service on a short term or temporary basis where a customer has received a permit from the City of Denton's Building Inspections Department. This rate is not applicable after the certificate of occupancy or building final has been issued. NET MONTHT ,Y RATE (1) Facility Charge Single-Phase Three-Phase $15.80/bill $21.10/bill plus; (2) Energy Charge per billing period 7.11~/KWH plus; (3) Energy Cost Adjustment Charge See Schedule ECA MTNTMl JM BIT ,I JNG For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Three-Phase Facility Charge Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual KWH consumption during the billing period. Energy Charge = KWH x KWH Rate TYPE OF SERVICE The City will supply single-phase service at sixty (60) cycles at a standard secondary voltage available at the site. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. 31 ADDTTTONAT, TEMPORARY SERVTC:E C:HARGES Labor (Regular Time) $60.00 minimum up to one (1) hour. $60.00 for each additional hour (to be measured to the nearest one- quarter hour). Labor (Overtime) $75.00 minimum up to one (1) hour. $75.00 for each additional hour (to be measured to the nearest one- quarter hour). Premium time to be added where applicable. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the equipment. Material Material that cannot be salvaged to be billed at Store's cost plus 25%, plus applicable sales tax. At the time a temporary service is removed or converted, any loss in the material installed due to negligence or willful action by the Customer will be billed separately to the Customer at replacement cost plus 25%, plus applicable sales tax. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. FLAT RATE TEMPORARY SERVTC:E Applicable to new construction of underground residential electric service only. Rate: A flat fee of $195 per lot payable when the Customer applies for temporary servIce. 32 SCHEDULEIDR INDlJSTRIAI, DEVEI DPMENT RIDER (Effective 1 % 1/05) A V ATT,ARTTJTY This rider is available to the Customers who receive service from Rate Schedules GSL or TGS. APPI JCA nON This rider is available to electric service supplied at anyone location. It is for firm electric service applicable to new and existing Customers as described below, over a five (5) year period. This rider is available to the following classes of Customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 225 KV A or 200 KW, as estimated and mutually agreed upon by the Director of Electric Utilities and the customer. (2) Existing customers served under Rate Schedules GSL or TGS who increase their prior existing metered demand by 225 KV A or 200 KW. This increase shall be verified by sub-metering (at the Customers expense) the additional load. If sub- metering is not possible, at the discretion of the Director of Electric Utilities, the increase may be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the Director of Electric Utilities and the Customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. NET MONTHT ,Y RATE The Customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period Reduction to Rilling Dem::lnd First Year Second Year Third Year F ourth Year Fifth Year 50% 40% 30% 20% 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 33 SCHEDULE EP ENRRGYSAVEPROGRAM (Effective 1 % 1/05) APPTJC:ATTONIPROGRAM SUMMARY Denton Municipal Electric ("DME") through this program, called "EnergySave", is offering cash payments as incentives in the form of rebates to Customers who purchase and install high- efficiency air conditioners or heat pumps for existing residential or commercial facilities. This program will also provide structure incentives in the form of rebates, in the amount of $2,000 per qualifying structure, to residential builders of single-family residences for meeting specific DME structure requirements. Satisfying these construction requirements will improve a residential structure's heating and cooling system's operating efficiency. Customers requesting to participate in the Structure Incentive program are not eligible to simultaneously participate in the HV AC Equipment Rebate. Apartments and multiple unit residential structures will qualify for the air conditioner rebates, but will not qualify for the structure incentive, if they meet the applicable EnergySave Program Guidelines. The EnergySave Program's objectives are primarily to reduce energy demand and consumption, thereby allowing the Customers of DME to save dollars on their utility bills, reducing the peak load of the City of Denton' s electric system, and promoting energy efficient heating and cooling. The EnergySave Program will be in effect each fiscal year beginning on October 1, until the allotted funding is depleted. At the time the funds are depleted, no additional applications for participation will be accepted until the next fiscal year. PROGRAM GTTTDETJNES I. Qualification Guidelines for HV AC: Equipment A. All installations must be for accounts served by the DME and must meet all applicable national, local, and manufacturers' codes and specifications. B. To qualify for the equipment incentive, the air conditioner or heat pump must be new when installed and have a minimum efficiency rating of 14 SEER. C. All equipment must be purchased. No leased or lease/purchased equipment will qualify for a cash rebate. D. Installations must be made by licensed contractors and/or dealers. E. No rebate will be paid on a partial replacement of an air conditioner. The condenser unit and the evaporator coil must be replaced to qualify for a rebate. F. Requests for payment must be received by DME within thirty (30) days of installation. 34 G. Equipment and installation must be permitted and inspected by the City's Building Inspection Department before final approval for payment is issued. H. The EnergySave Program guidelines and payments are subject to change by DME without prior notice. I. DME may, at any time, discontinue the EnergySave Program, without prior notice. J. Payments shall be credited to the recipient's utility account with DME. II. QU::IlificMion Guidelines for Stmctme Incentive A. $2,000.00 per qualifying structure is offered to a builder or authorized agent. B. Builder, or authorized agent, must be enrolled in the Denton Municipal Electric EnergySave Program (Energy Save ). C. Each home participating in the EnergySave program must be registered with DME prior to construction and must also comply with the 2000 IECC requirements relating to residential structures. D. Install a 1.5-ton or above central air conditioner or heat pump having a minimum efficiency rating of 14 SEER. E. Install minimum insulation of: R49 - ceiling (uniform application) R30 - under decking R30 - cathedral or vaulted ceiling R30 - floor R13 - wall cavity Insulation should not contact radiant barrier roof decking. F. Exterior glass must meet minimum high efficiency standards 0.4 or below - solar heat-gain coefficient 0.4 or below - U-factor G. Programmable Thermostat - EnergyStar approved H. Radiant Barrier Decking Must maintain air gap between insulation and decking I. Acceptable attic ventilation One square inch of ventilation per square foot of attic floor, or rate of air exchange of entire volume of attic air once at per minute 35 J. Structure Incentives for new homebuilders must also comply with the respective restrictions and guidelines set forth by the International Residential Code (IRC). III. General Procedures A. Application 1. Equipment: An application for equipment incentive must be completed and sent to Denton Municipal Electric within sixty (60) days of installation of new or replacement equipment. Participating dealers have application forms and will complete these forms for the purchaser. It is the purchaser's responsibility to see that the dealer completes the form and submits it to DME. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. 2. Structure Incentive: To qualify for residential structure incentives, a builder/developer or authorized agent must be registered as an authorized Denton Municipal Electric EnergySave Authorized Builder. To become a recognized EnergySave builder, applicant must complete and submit a Denton Municipal Electric EnergySave Builder Application form to the Director of Electric Utilities. Applicants must also register as an EnergySave participant when submitting a request under this program or applying for City of Denton building permits. B. Inspections Installations of central air-conditioning systems must be permitted and will be inspected by the City's Building Inspection Department, and must be approved before rebates will be processed. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. New structures will be randomly audited to insure adherence to the required energy efficient construction specifications. C. Payments to Participants 1. Equipment Retrofit (Exi sting resi dences) Cash payments will be made to the purchaser of the qualifying replacement equipment. Participating retail equipment dealers will receive a cash payment of $20 per unit for the sale of window units, central air conditioning systems, or heat pumps to offset their cost for properly filling out the applications for purchasers of retrofit equipment. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. 36 2. New equipment and structure incentive Program participants are responsible for submitting the correct information. DME will not issue any additional payment unless the payment was incorrect due to a mistake in processing by a City employee. The twenty-dollar ($20.00) payments to dealers will be made only if they supply the qualifying equipment to the customer or builder who is paying for the installation of the equipment. Dealers and purchasers may be denied payment for failure to follow program guidelines such as: failing to supply correct SEER/EER figures; installing equipment which is not new; replacing part of a split system; or failure to fill out rebate forms properly. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by DME. Payments will be made to customers who purchase and install new qualifying equipment. If a tenant purchases and installs qualifying equipment, the payment is made to the tenant. If the owner of rental property purchases and installs qualifying equipment, the payment is made to the owner. IV. Payment Schedule SEER/EER Type ofT Tnit Rating Incentive Central Air Conditioning 14.0 + $600/unit Central Heat Pumps 14.0 + $700/unit Geothermal Heat Pump 14.0 + $700/unit Room Air Conditioners 12.0 + $50/unit Room Heat Pumps 12.0 + $50/unit 37 SCHEDULE UPS 1 JNTNTERRlJPTTBLE POWER SlJPPLY (Effective 1 % 1/05) APPT ,If: A nON Applicable to any Customer who, by written agreement, receives service for an uninterruptible power supply for a computer or other electrical equipment. Uninterruptible Power Supplies provided by the City of Denton, Texas are of the standby type. NET MONTHT Y RA TE (1) Facility Charge: 0-300 Watts Uninterruptible Power Supply 301-700 Watts Uninterruptible Power Supply 701-1,200 Watts Uninterruptible Power Supply $7.80/bill $14.90/bill $31.85/bill plus; (2) Installation Charge $25.75 For any Uninterruptible Power Supply other than above, the monthly Customer Charge will be based on the following formula: (1) Monthl y Charge: 5% of Annu::I1 M::Iinten::lnce f:ost 12 months PLUS 6% Annu::I1 Return ofTnvestment 12 months PLUS 8% Interest on a Five ( 5) Year Life TYPE OF SER VTf:E The City shall furnish, install, maintain an automatically controlled alternating current power backup unit conforming to the City's standards and subject to its published rules and regulations. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 38 SCHEDULE ECA ENERGY COST ADTIJSTMENT (ECA) (Effective 1 % 1/05) ECA CALCTJLATTON The Energy Cost Adjustment (ECA) shall be computed during the last month of each fiscal year quarter (December, March, June and September) to be applied to the quarter immediately following. The City shall in no case change the energy cost adjustment more than once in any three (3) month period. The ECA shall be calculated using the following formula: ECA = (Projected energy costs for next quarter)/(projected KWH sales for next quarter) In the event that actual plus estimated cumulative costs of fuel, variable costs of Texas Municipal Power Agency (TMPA) energy and purchased energy (excluding TMPA's fixed charges) are greater than or less than the actual and projected ECA revenues by $500,000 or more during the next quarter, the Director of Electric Utilities or her designate shall recalculate the Energy Cost Adjustment and, with Public Utilities Board approval, may establish an ECA that collects or returns such difference over the next three-month period. Such change in ECA shall be applied evenly to each month during the three-month period. ENERGY COST ADTIJSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual KWh consumption during the billing period. Energy Cost Adjustment Charge = KWh x Energy Cost Adjustment 39 SCHEDULE UD DISCOlJNT RIDER FOR STATE IJNIVERSITTES AND COLLEGES (Effective 1 % 1/05) APPI .TCA TTON Service provided herein is applicable to electric service billed under the otherwise applicable tariffed rate for service supplied to a facility of a "four-year state university, upper-level institution, Texas State Technical College, or college" as provided in the Public Utility Regulatory Act of2003, Chapter 36, Subchapter H, 936.351. CREDIT TO MONTHTYRTTJ, OR MONTHTYRATE Per the Public Utility Regulatory Act of 2003, Chapter 36, Subchapter H, 936.351 a discount of 20% shall be applied to the base rate of the applicable rate schedule of an account. "Base Rates" are defined as the sum of the following charges: the Facility Charge, the Energy Charge and/or the Demand Charge of the applicable rate schedule. Base rates do not include recovery of fuel and purchased energy costs, including, without limitation, energy cost adjustments (the ECA rate or its successors). All other charges and calculations in the rate schedule are unchanged. 40 SCHEDULE DGR DTSTRTRTTTED GENERATTONFROMRENEWARLE SOTTRf:ES RIDER (Effective 1 % 1/05) APPT .If:A TTON This Rider is available to any retail customer receiving electric service under a City of Denton residential electric rate schedule who owns and operates an on-site generating system powered by a renewable resource capable of producing not more than 3 kW of power, and who interconnects with the City of Denton's electric system. Renewable energy technology is any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly or indirectly from the sun or wind. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources. This Rider applies to a Customer-owned generating system that primarily offsets part or all of the Customer's electric service provided by the City of Denton. f:ONDTTTONS OF SERVTf:E All charges, character of service, and terms and conditions of the City of Denton electric rate schedule under which the Customer receives service apply except as expressly altered by this Rider. The Customer shall comply with the current City of Denton technical requirements for distributed generation interconnection. The Customer shall obtain approval from the City of Denton before the Customer energizes the customer's on-site generating system or interconnects it with the City of Denton's electric system. The Customer shall submit to the City a completed interconnection application form and signed agreement. The minimum term of an agreement under this Rider is one year, extended automatically unless terminated by either party with sixty days advance written notice The Customer is responsible for the costs of interconnecting with the City of Denton's electric system, including transformers, service lines, or other equipment determined necessary by the City for safe installation and operation of the Customer's equipment with the City's system. The Customer is responsible for any costs associated with required inspections and permits. METERTNG Metering under this Rider shall be performed by a single meter capable of registering the flow of electricity in two directions (delivered and received) to determine the Customer's net energy flow. RATE Beginning in a billing period after a Customer receives approval to interconnect the Customer's on-site generating system from the City of Denton, if the energy delivered by the Customer's 41 approved system to the City of Denton's electric system exceeds the amount of energy delivered by the City of Denton to the Customer, the City shall credit the Customer's account for the energy generated as described below. The monthly credit, if any, is calculated as follows: Each kWh delivered from the Customer's approved system to the City of Denton's electric system in excess of the kWh delivered by the City of Denton to that Customer is multiplied by the billing period's Energy Cost Adjustment Rate. Any credit shall be applied to the utility charges due from the Customer to the City of Denton for the billing period. 42 SCHEDULE SFR SPECIAL FACILITIES RIDER (Effective 1 % 1/05) (1) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices not normally and readily available at the location which the customer requests service, the total cost incurred by the City of all facilities installed, buried, relocated and/or removed shall be the responsibility of the Customer and subject to a special contract entered into between the Utility and the Customer. This contract shall be signed by both parties prior to the City providing service to the Customer. (2) Billing for services beyond the delivery of electricity, utilized by the Customer, may be subject to a special contract entered into between the utility and the Customer. This contract shall be signed by both parties prior to the City providing service to Customer. 43 SCHEDULE DFR DA RK FTRRR RA TR (Effective 1 % 1/05) APPT ,IrA nON Service is available to any customer to the extent there is any excess capacity respecting Denton Municipal Electric's fiber optic cable facilities, within the area served by Denton Municipal Electric's ("DME") distribution system, for the purpose of point-to-point dark fiber optic cable connectivity intended for the transport of high-speed data. MONTHT Y RA TE (1) Fiber Mileage Charge $400 per fiber pair/mile, per month; and (2) Building Presence Charge $180 per location, per month Total Fiber Rate $580 per fiber pair/mile, per month, per location RATE GT TIDE JNES (1) The minimum quantity of fiber to be leased shall be one (1) fiber pair. All fiber pairs furnished to the customer shall consist of two (2) fibers. (2) The minimum Fiber Mileage Charge is for one (1) fiber pair/mile. (3) Mter the first mile, Fiber Mileage Charge will be charged in increments of the nearest one-tenth (0.1) mile. (4) All costs associated with ingress to a customer's location from the DME right-of-way shall be billed directly to the customer, and are not included in the Fiber Mileage Charge and the Building Presence Charge and shall be paid to Denton Municipal Electric within fifteen (15) calendar days from the date of issuance of the bill. (5) The Fiber Mileage Charge calculation is based upon the actual fiber pair distance along the DME distribution system rights-of-way. The Fiber Mileage Charge is not based upon any other method of calculation. The Fiber Mileage Charge is not based upon any distance determination, such as the distance the crow flies, or from point-to- point. (6) The Fiber Mileage Charge distance shall be capped at two (2) times the direct point-to- point distance. DTsrOT TNTS Special discounts will be applied for fiber pairs to the same location, and for fiber pairs for long- term contracts in the amounts as shown in the table below. The discount applicable to a customer shall not be a cumulative total of all the discounts offered. The discount any customer is entitled to shall be the largest single discount applicable to that customer's service. 44 Discount Type Discount Discount Type Discount T effil ofT ,e::l se % NlImher ofFihers % 5-7 Years 30% 1-2 Fibers /Mileage Charge 0% 8-10 Years 45% 3-6 Fibers/ Mileage 9.7% Chame 7-12 Fibers/Mileage Charge 19% 12 or more Fibers/Mileage 28.7% Charge TYPE OF SER VTC:E The City shall furnish, install, maintain and deliver only point-to-point dark fiber connectivity for the purpose of transporting high-speed data with a maximum loss of no more than 9.0 dB. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF I,EASE C:ONTRAC:T All dark fiber lease contracts shall be for a minimum term of five (5) years. 45 SFrTTON 2 That the Assistant City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedule EP, as the use of more efficient air conditioning compressors and heat pumps is in the best interest of the City of Denton, Texas, as such will reduce the peak-load and conserve energy, which are public purposes of the City. SFrTTON ') That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SFrTTON 4 That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SFrTTON ') That this ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric effective with the first billing issued on and after October 1,2005; and a copy of said rates shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. 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: S:IOur DocumentslOrdinancesl051FY 2006 Electric Rate Ordinance-D1.doc 46 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 2004-256 FOR WATER SERVICE AND WATER RATES; AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); AMENDING THE WHOLESALE RAW WATER PASS-THROUGH RATE FOR UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (SCHEDULE WCL); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SEcnON 1 That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES WR Residential Water Service EAGE 2 WC CommerciallIndustrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 9 WW2 Wholesale Treated Water Service to Upper Trinity Regional Water District 10 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 12 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District 13 from Lake Chapman into Lake Lewisville Water Tap and Meter Fees 14 Fire Hydrant Installation 16 Water Laboratory Testing Fees 17 Special Facilities Rider 18 Exhibit 2 SCHEDULE WR RESIDENTIAl, WATER SERVICE (Effective 1 % 1/05) APPI JCA TION Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units, with or without wastewater service within the corporate limits of the City of Denton, Texas. (WR) Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, Texas with or without wastewater service. (WRO) The rate is also applicable where the metered water is not returned to the wastewater system for collection and treatment, i.e. lawn sprinkler or septic system. (WRN) Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHT Y RA TE (WR) - RESIDENTIAl, WATER SERVICE; AND MONTHLY RATE (WRN) - METERED WATER NOT RETURNED TO WASTEWATER SYSTEM FOR COI .I ,ECTION AND TREA TMENT (1) Facility Charge Per Bill 3/4" Meter $ 9.55 1" Meter $11.40 1-1/2" Meter $16.25 2" Meter $18.10 (2) Volume Charge RMe Per 1 000 G::Illons , RATE BIDCK PER 30 DAYS WINTER SIMMER Billing months of NOV through APRIL Billing months of MAY through OCT 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $2.60 $2.60 $2.60 $2.60 $3.50 $4.3 5 2 MONTHI Y RA TES (WRO) - WATER SERVICE 01 JTSTDE CORPORA TE I JMITS MONTHI ,Y RA TE (1) Facility Charge Per Bill 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter $11. 00 $13.10 $18.65 $20.80 (2) Volume Charge RMe Per 1 000 G::Illons , RA TE BI,OCK PER 10 DA YS WINTER Sl JMMER Billing months NOV through APRIL Billing months MA Y through OCT 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $3.00 $3.00 $3.00 $3.00 $4.05 $5.00 MTNTMl JM Brr J ,ING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECI A I, FA crr ,TTIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOl JJME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: G::Illons in rMe hlock x rate per 1,000 gal. in rate block 1000 gallons 3 PRORA TTON OF VOl HME HI,Of:KS Billing for the summer period volume charges shall be based on water consumption in each rate block and prorated using the following formula. Formula: Actual days in hilling period V I . th t bl k x 0 ume III e ra e oc 30 days RETAIL WATER RATES ONDER DROOGHT f:ONTTNGENf:Y PLAN f:ONDITTONS - ORDTNANf:E NO 2000-00n Under Stage 3 drought conditions, the following residential water rates shall apply for retail customers. Residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. STAGE 3 WR RATE BLOCKS PER THIRTY (30) DAYS IJNDER DROIJGHT f:ONTTNGENf:YPI,AN WTNTER Billing months of NOV through APRIL SI JMMER Billing months of MAY through Of:T 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $2.60 $2.60 $2.60 $2.60 $3.50 $5.22 STAGE 3 WRORATEBLOCKSPER THIRTY (30) DAYS I JNDER DROI JGHT f:ONTTNGENf:Y PI ,AN WTNTER Billing months of NOV through APRIL SIMMER Billing months of MAY through Of:T 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $3.00 $3.00 $3.00 $3.00 $4.05 $6.00 Under Stage 4 drought conditions, the following residential water rates shall apply for retail customers. Residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. 4 STAGE 4 WR RATE BLOCKS PER THIRTY (30) DAYS IJNDER DROIJGHT CONTINGENCYPI,AN WINTER Billing months of NOV through APRIL 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $2.60 $2.60 $2.60 STAGE 4 WRORATEBLOCKSPER THIRTY (30) DAYS IJNDER DROIJGHT CONTINGENCYPI,AN WINTER Billing months of NOV through APRIL 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $3.00 $3.00 $3.00 5 SIMMER Billing months of MAY through OCT $2.60 $4.20 $5.22 Sl JMMER Billing months of MAY through OCT $3.00 $4.86 $6.00 SCHEDULE WC COMMERCTALlTNDlJSTRTAL WATER SERVICE RA TE (Effective 1 % 1/05) APPT JCA nON Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance, for all water provided at one point of delivery and measured through one meter. (WC) Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one point of delivery and measured through one meter, with or without wastewater service. (WCO) Also applicable where the metered water is not returned to the wastewater system for collection and treatment, i.e. water used in production or irrigation or where the wastewater flow is measured separately. (WCN) Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHT Y RA TE (WC) :'Inti (WCN) (1) Facility Charge Per Bill 3/4" Meter I" Meter 1-l/2" Meter 2" Meter 3 " Meter 4" Meter 6" Meter 8" Meter 10" Meter $20.20 $22.20 $25.75 $31.65 $66.25 $122.50 $153.00 $178.00 $214.00 (2) Volume Charge $2.87 per 1,000 gallons MONTHT Y RA TE (WCO) - OlJTSIDE CORPORA TE T JMTTS (1) Facility Charge Per Bill 3/4" Meter $21.50 1" Meter $23.50 1-1/2" Meter $29.60 2" Meter $34.50 3" Meter $75.00 6 4" Meter 6" Meter 8" Meter 10" Meter $141.00 $176.00 $205.00 $247.00 (2) Volume Charge $3.25 per 1,000 gallons MTNTMl JM BIT J JNG Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECI A I, F ACIT ,TTIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOl .lJME CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption x Rate per 1,000 gallons 1,000 COMMERCTATJTNDTTSTRTAL WATER RATES (WC/WCN) TTNDER DROTTGHT CONTINGENCY PI ,A N CONDITIONS - ORDINANCE NO 2000-00n Under Stage 3 drought conditions, the following commercial/industrial water rates shall apply for retail customers. CommerciallIndustrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. STAGE 3 WC/WCN RATE BLOCKS PER THIRTY (30) DAYS ITNDER DROIJGHT CONTINGENCYPI,AN Volume Rate for under 80% volumes $2.87/1,000 Gallons Volume Rate for volume over 80% of Prior Billing Volumes $3.44/1,000 Gallons 7 Under Stage 4 drought conditions, the following commercial/industrial water rates shall apply for retail customers. CommerciallIndustrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. STAGE 4 WC/WCN RATE BLOCKS PER THIRTY (30) DAYS lJNDER DROlJGHT CONTINGENCYPI,AN Volume Rate for under 70% volumes $2.87/1,000 Gallons Volume Rate for volume over 70% of Prior Billing Volumes $3.44/1,000 Gallons COMMERCIALlTNDlJSTRIAL WATER RATES (WCO) lJNDER DROlJGHT CONTINGENCY PLAN CONDITIONS - ORDINANCE NO 2000-00n Under Stage 3 drought conditions, the following commercial/industrial water rates shall apply for retail customers. CommerciallIndustrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. STAGE 3 WCORATEBLOCKSPER THIRTY (30) DAYS lJNDER DROlJGHT CONTINGENCYPI,AN Volume Rate for under 80% volumes $3.25/1,000 Gallons Volume Rate for volume over 80% of Prior Billing Volumes $3.90/1,000 Gallons Under Stage 4 drought conditions, the following commercial/industrial water rates shall apply for retail customers. CommerciallIndustrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. STAGE 4 WCORATEBLOCKSPER THIRTY (30) DAYS 1 JNDER DROl JGHT CONTINGENCY PI ,AN Volume Rate for under 70% volumes $3.25/1,000 Gallons Volume Rate for volume over 70% of Prior Billing Volumes $3.90/1,000 Gallons 8 SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 1 % 1/05) APPT ,IrA nON Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the "Fire Hydrant Meter Use Agreement." DEPOSTT $800.00 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. Deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $3.33 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the "Fire Hydrant Meter Use Agreement", failure by the Customer to return the meter to water utilities by the 3rd day of each month for reading, results in acceptance by the Customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $66.25 per bill PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 9 SCHEDULE WW2 WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY REGIONAl, WATER DISTRICT (Effective 1 % 1/05) APPI JCA nON Applicable to all wholesale treated water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD). Not applicable for temporary, standby, or supplementary service. MONTHT Y CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2) (1) Facility Charge $176.00 per bill (2) Water Volume Rate $0.34 per 1,000 gallons (WD2) (3) Subscribed Demand Rate $406,10700 per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in full, in accordance with the bill payment delinquency provisions provided for below. MTNTMT JM BIT .I ,ING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for anyone day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. If the actual peak demand has an increased daily volume between .05 and .10 MGD from the subscribed demand (50,000 - 100,000 10 gallons per day), the annual water demand charge will be adjusted up and billed at the actual peak demand level. BIT J, PAYMENT DET JNQl JENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 11 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO UPPER TRTNTTYREGTONAL WATER DTSTRTCT (Effective 1 % 1/05) APPT JCA nON Applicable to all raw water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD), per the Interim Sale of Wholesale Raw Water Contract. MONTHT Y CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.3745 per 1,000 gallons PAYMENT Denton shall render bills by the tenth (10th) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. BIT J, PAYMENT DET ,TNQT JENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 SCHEDULE WCL WHOLESALE RAW WATER P ASS-THROUGH TO UPPER TRINITY REGIONAL WATER DISTRICT FROMT,AKE CHAPMANTNTO T,AKE T,EWTSVTTJ,E (Effective 1 % 1/05) APPT JCA nON Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHT Y CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.0212 per 1,000 gallons PAYMENT Denton shall render bills monthly. Bills shall be due and payable within twenty (20) calendar days of the date a bill for service is rendered. BIT .I, PAYMENT DET ,TNQT JENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 13 WATER TAP AND METER FEES (Effective 1 % 1/05) APPI JCA nON This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Size of Tap and Meter Paved Street 1 Jnpaved Street 3/4 inch 1 inch 1 1Iz inch 2 inch $1,410.00 $1,625.00 $2,055.00 $2,275.00 $595.00 $730.00 $1,085.00 $1,410.00 WATER METER FEES Size of Meter 3/4 inch $305.00 1 inch$375.00 1 1Iz inch$490.00 2 inch$630.00 WATER METER REI DCA nONS Size of Meter Relocation of 10 Feet or I,ess 3/4 inch $285.00 1 inch$285.00 1 1Iz inch $340.00 2 inch$390.00 14 WATER TJNE TAPS Size of Tap Paved Street 1 Jnpaved Street 4 inch 6 inch 8 inch 12 inch $2,705.00 $2,920.00 $3,895.00 $4,865.00 $1,625.00 $1,895.00 $2,815.00 $3,730.00 FEES FOR TNST A T J ,A nONS NOT T JSTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinkler systems. 15 FIRE HYDRANT INSTALLATION (Effective 1 % 1/05) APPT .leA nON This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDR A NT TNST AT .I ,A nON FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hyanmt Tnst::lll::Jtion P::Ivea Street T Tnp::Ivea Street Installation Fee $5,030.00 $3,085.00 FEES FOR TNST A T J ,A nONS NOT T JSTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. 16 WATER T ,ARORA TORY TESTING FEES (Effective 1 % 1/05) APPT .leA nON Applicable to all customers and entities requesting testing and analysis services from the City of Denton W ater/W astewater Laboratory. RATE Fee Descn pti on Fee Per Test Colilert (P/ A) Colilert (P/ A) Quantitray Total Coliform Analysis (MPN) Heterotrophic Plate Counts (HPC) Fecal Coliform (MF) $20.00 $20.00 $45.00 $25.00 $30.00 Records Search $25.00/hour The testing and analysis fees are established to recover the cost of testing water and wastewater samples. MTNTMT JM BIT J JNG $20.00 - Testing $25.00 - Records Search PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 17 SPECIAL FACILITIES RIDER (Effective 1 % 1/05) All service shall be offered from available facilities. If a Customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the Customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. 18 SEc:nON 2 That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms of provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SEc:nON ') That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SEc:nON 4 That the Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on and after October 1, 2005; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. 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: 19 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 2004-257 FOR WASTEWATER SERVICE; AMENDING THE RESIDENTIAL WASTEWATER SERVICE - FACILITY CHARGE AND VOLUME CHARGE (SCHEDULE SR); AMENDING THE MOBILE HOME PARK - FACILITY CHARGE AND VOLUME CHARGE (SCHEDULE SMH); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE - FACILITY CHARGE, VOLUME CHARGE, PRETREATMENT PROGRAM CHARGE, SAMPLING AND ANALYSIS CHARGE, AND SURCHARGE; (SCHEDULE SC); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE RATE WHICH MEASURES WITH DEDICATED METERS (SUB-METERS) WATER FOR WASTEWATER BILLING - FACILITY CHARGE, VOLUME CHARGE AND SURCHARGE (SCHEDULE SCD); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE RATE WHICH MEASURES WITH DEDICATED METERS (SUB- METERS) WATER EXCLUDED FROM WASTEWATER BILLING - FACILITY CHARGE AND SURCHARGE (SCHEDULE SCS); AMENDING THE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS AND FOOD SERVICE ESTABLISHMENT - FACILITY CHARGE, VOLUME CHARGE, PRETREATMENT PROGRAM CHARGE, SAMPLING AND ANALYSIS CHARGE, AND SURCHARGE (SCHEDULE SEE); AMENDING THE METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS - FACILITY CHARGE, VOLUME CHARGE, PRETREATMENT PROGRAM CHARGE, SAMPLING AND ANALYSIS CHARGE, AND SURCHARGE (SCHEDULE SM); AMENDING THE WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION - FACILITY CHARGE, PRETREATMENT PROGRAM CHARGE, VOLUME CHARGE, SAMPLING AND ANALYSIS CHARGE, AND SURCHARGE (SCHEDULE SSC); REMOVING THE DYNO CHIPS RATE AND ADDING AN ASHPHALT MILLINGS RATE (SCHEDULE CWM); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SEcnON 1 That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: 1 EXHIBIT 3 WASTEWATER RATE SCHEDULES SR Residential Wastewater Service 3 SMH Mobile Home Park Wastewater Service 6 SC Commercial and Industrial Wastewater Service 9 SCD CommerciallIndustrial Wastewater Service Which Measures With 13 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing SCS CommerciallIndustrial Wastewater Service Which Measures With 15 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SEE Equipment Services Facilities and Restaurants & Food 17 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 20 SGE Sale of Treated Wastewater Effluent 22 SSC Wholesale Wastewater Treatment Service for a Governmental Agency, Division or Subdivision 24 CWM DYNO Dirt Products 26 GBL Grass, Brush, and Leaves 28 ST Wastewater Tap Fees 29 STE Treated Effluent Wastewater Tap Fees 30 OSSF On-Site Sewage Facility Fees 31 SD Storm Drainage Fees 32 Special Facilities Rider 34 2 SCHEDULE SR RESIDENTIAl, W A STEW A TER SERVICE (Effective 10/1/05) APPI .If: A TION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton, Texas water service. Not applicable for sub-billing or other utility billing by service user in any event. MONTHT Y RA TES (SR) - WITH f:TTY OF DENTON WATER SERVTf:E (1) Facility Charge $7.45/bill (2) Volume Charge $2.85/1,000 gallons effluent MONTHT Y RATES (SRO) - OlJTSIDE f:ORPORA TE LIMITS WITH f:ITY OF DENTON WATER SERVTf:E (1) Facility Charge $8.60/bill (2) Volume Charge $3.29/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of6,500 gallons. MTNTMT JM BIT .I ,TNeT - WITH f:ITY OF DENTON WATER SER VTf:E Facility Charge. 3 VOT J TME f:H A ReTE - WTTH f:TTY OF DENTON WATER SER VTf:E With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. f:mrent Aven'lge D::Iily TTs::Ige x 9R% x Rate per 1,000 gallons 1,000 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6500 eT::Illons x 9R% x Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:T AT, FA f:IT ,TTIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. MONTHT Y RA rns (SRNT/SRNO) - WTTHOl JT f:TTY OF DENTON WATER SER VTf:E SRNI SRNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $7.45/bill $8.60/bill (2) Volume Charge $2.85/1,000 gals $3.29/1,000 gals The customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MTNTMl JM BIT J ,TNeT - WTTHOl JT f:TTY OF DENTON WATER SERVTc:E The Facility Charge plus five thousand (5,000) gallons of wastewater. 4 VOT J TME f:H A ReTE - WTTHOT JT f:TTY OF DENTON WATER SER VTf:E The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume x Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:T AT, FA f:rr ,TTIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 5 SCHEDULE SMH MOBTT,E HOME PARK WASTEWATER SERVICE (Effective 1 % 1/05) APPI JCA nON Applicable for mobile home parks that are master water metered to provide residential wastewater service. Wastewater service is billed based on the Customer's winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHl Y RATE (SMH) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $ 19.47/bill (2) Volume Charge $2.85/1,000 gallons effluent MONTHlY RATE (SMHO) - OTTTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.62/bill (2) Volume Charge $3.29/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater Volume Charge for each subsequent month, through the following February. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. 6 MTNTMT JM BIT J ,TNeT - WTTH f:TTY OF DENTON WATER SER VTf:E Facility Charge. VOT UME f:HAReTE - WTTH f:TTY OF DENTON WATER SERVTf:E With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. f:mrent Aven'lge D::Iily TTs::Ige x 9R% x Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Est::lhlished Bill::1hle Volume x Rate per 1,000 gallons x Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:T AT, FA f:IT JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. MONTHT Y RA TE (SMNT/SMNO) - WTTHOTTT f:TTY OF DENTON WATER SERVTf:E SMNI SMNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $19.47/bill $21.62/bill (2) Volume Charge $2.85/1,000 gals $3.29/1,000 gals The Customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MTNTMT JM BIT J ,TNeT - WTTHOl JT f:TTY OF DENTON WATER SERVTc:E The Facility Charge plus five thousand (5,000) gallons of wastewater per mobile home. 7 VOT J TME f:H A ReTE - WTTHOT JT f:TTY OF DENTON WATER SER VTf:E The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume x Rate per 1,000 gallons x Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:T AT, FA f:rr JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 8 SCHEDULE SC COMMERCIAl, AND INDUSTRIAl, WASTEWATER SERVICE (Effective 1 % 1/05) REGULAR COMMERCIAL APPI JCA nON Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. MONTHl Y RA TE (Sf":) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $19.47/bill (2) Volume Charge $3.70/1,000 gallons effluent Billing based on eighty-five (85%) percent of monthly water consumption. Elu.s PRETREA TMENTIPROGRAM CHARGES (As Applicahle) (SCA) (A) Categorical Customer $400.00/bill (SCB) (B) Non-categorical Customer $ 50.00/bill SAMPLING AND ANALYSIS CHARGES (As applicahle) (A) Sampling charge (each) $42.00 (B) Analysis charge (per test) $21.00 MONTHlY RATE (Sf":O) - OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.62/bill (2) Volume Charge $4.26/1,000 gallons effluent Billing based on eighty-five (85%) percent of monthly water consumption. 9 MTNTMT JM BIT J JNG Facility Charge. VOl JJME C:HARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume x: 85 x Rate per 1,000 gallons 1,000 C:OMMERC:IAL AND TNDTTSTRIAL SIJRC:HARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit ofTSS per 1,000 gallons. MONTHT Y RA TE (SCNT/SCNO) - WITHOl JT C:ITY OF DENTON WATER SERVTC:E SCNI SCNO Inside Corporate Outside Corporate l,imits Limits (1) Facility Charge $19.47/bill $21.62/bill (2) Volume Charge $3.70/1,000 gals $4.26/1,000 gals The minimum apartment Volume Charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. 10 MTNTMT TM BIT J JNG (1) Facility Charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility Charge plus other commercial user estimated monthly wastewater volume. VOl .lTME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume x Rate per 1,000 gallons 1,000 Elu.s PRETREA TMENTIPROGRAM CHARGES (As applicahle) (1) Categorical Customer $400/bill (2) Non-categorical Customer $50/bill SAMPLING AND ANALYSIS CHARGES (As applicahle) (1) Sampling charge (each) $42.00 (2) Analysis charge (per test) $21.00 COMMERCIAL AND TNDTTSTRIAL STTRCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu Vu is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. 11 Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one unit ofTSS per 1,000 gallons. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPErl A l , FA rrr JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 12 SCHEDULE SCD COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER FOR WASTEWATER BILLING (Effective 1 % 1/05) APPI .leA nON Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD sub-metered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHT ,Y RA TE (1) Facility Charge Billing Per Bill 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter 3" Meter 4" Meter 6" Meter 8" Meter 10" Meter $25.83 $28.24 $35.56 $41.46 $90.12 $169.43 $211.48 $246.33 $296.80 (2) Volume Charge $3.70/1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MTNTMT JM Bll J ,ING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 13 SPEf:l A l , FA f:rr JTTES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. f:OMMERf:lAL AND TNDTTSTRlAL SlJRf:HARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit ofTSS per 1,000 gallons. VOlJJMEf:HARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume x: 98 x Rate per 1,000 gallons 1,000 14 SCHEDULE SCS COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER EXCT.lIDEDFROMWASTEWATER BIT .I JNG (Effective 1 % 1/05) APPT .leA nON Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer's processes, not returned to the wastewater system, and are therefore excluded from the customer's wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHT Y RA TE (1) Facility Charge Billing Per Bill 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter 3" Meter 4" Meter 6" Meter 8" Meter 10" Meter $25.83 $28.24 $35.56 $41.46 $90.12 $169.43 $211.48 $246.33 $296.80 (2) Volume Charge - None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume submetered. MTNTMl JM BIT .I JNG Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 15 SPEf:l A l , FA f:rr JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. WASTEWATER SlJRf:HARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/l, whichever is greater. is the unit cost factor for treating one unit ofTSS per 1,000 gallons. VOl J JME f:H A RGE EXn J JSlON The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, in other words, removed, from the master meter water volume prior to the wastewater billing volume calculation. 16 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 1 % 1/05) APPT JCA TION Applicable to facilities which perform washing, cleaning or servicing of automobiles, trucks, buses or similar equipment and are categorized by Standard Industrial Code Numbers 5541, 7549, 7542, and/or similar code classifications. Applicable to all restaurants and food service establishments that prepare and serve food directly to customers and are categorized by Standard Industrial Code Numbers 5812,5813 and/or similar code classifications. MONTHT Y RATE (SEE) (1) Facility Charge $19.47/bill (2) Volume Charge $5.11/1,000 gallons effluent Billing based on eighty-five (85%) percent of monthly water consumption. El.us PRETREATMENT /PROGRAM CHARGES (As Applic::Ihle) (SEA) (A) Categorical $400/bill (SEB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING/ANALYSTS CHARGES (As Applic::Ihle) (1) (2) Sampling charge (each) Analysis charge (per test) $42.00 $21. 00 "SEE" RATE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the 17 sanitary sewer. The exemption for the SEE class shall be determined by the City of Denton Environmental Health Services Food Inspection Division. (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/l of BOD and 550 TSS as determined by the monitoring performed in Section 2(b). MTNTMl JM Brr J JNG Facility Charge. W A STEW A TER SlJRCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-500] B + [Su-600] S]) Where: Cu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 500 mg/l, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 600 mg/l, whichever is greater. is the unit cost factor for treating one unit ofTSS per 1,000 gallons. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECT AT, FA crr JTTES 18 All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOTJJMEC:HARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume x: 85 x Rate per 1,000 gallons 1,000 19 SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORA TE T JMTTS (Effective 1 % 1/05) APPT JCA nON Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. MONTHT Y RA TE SMI Inside Corporate Limits SMO Outside Corporate Limits (1) Facility Charge $240. 32/bill $276.37/bill (2) Volume Charge $3.70/1,000 gals $4.26/1,000 gals El.us (3) Pretreatment/Program Charge (As Applicable) (SMA) (A) Categorical $400/bill (SMB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPTJNG/ANATYSTS CHARGE (As Applicable) (1) Sampling charge (each) $42.00 (2) Analysis charge (per test) $21.00 WASTEWATER STJRCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) 20 Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one unit ofTSS per 1,000 gallons. MTNTMT JM BIT J JNG Facility Charge, plus the appropriate Pretreatment/Program Charge, if applicable. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:l A l , FA f:IT JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOl JJME f:HARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 21 SCHEDULE SGE SAT ,E OF TREA TED W A STEW A TER EFFT.l TENT (Effective 10/1/05) APPT .IrA nON Applicable for sales of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODurT A V ATLABTLTTY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHT Y RA TES (1) Facility Charge Per Bill 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter 3" Meter 4" Meter 6" Meter 8" Meter 10" Meter $ 20.20 $ 22.20 $ 25.75 $ 31.65 $ 66.25 $122.50 $153.00 $178.00 $214.00 (2) Volume Charge $1.35/1,000 gallons MTNTMT JM BIT .I JNG Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 22 SPEf:l A l , FA f:rr JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. VOlJJMEf:HARGE Billing for the wastewater volume shall be based on the effluent volume calculated during the billing period. Formula: Effluent volume x Rate per 1,000 gallons 1,000 23 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DTVISTON, OR SlffiDTVISTON (Effective 1 % 1/05) APPT .lCA nON Applicable to any municipal corporation, or other governmental agency or subdivision which operates a wastewater collection system and contracts with the City of Denton for wastewater treatment service. MONTHT Y RA TES (1) Facility Charge $198.43/bill (2) Pretreatment/Program Charge (As Applicable) (A) Categorical $400/bill (B) Non-categorical $50/bill (3) Volume Charge $2.20/1,000 gallons Billing shall be based on one hundred (100%) percent of actual gallons measured. SAMPT.lNG/ANATYSTS CHARGE (As Applicahle) (1) Sampling Charge (each) $42.00 (2) Analysis Charge (per test) $21.00 MTNTMl JM BIT J JNG Facility Charge. WHOLESALE SlJRCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) 24 Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one unit ofTSS per 1,000 gallons. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPEf:l A l , FA f:rr JTTES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOlJJMEf:HARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 25 SCHEDULE CWM DYNO DIRT PRODIJCTS (Effective 10/1/05) APPT JCA nON Applicable to any and all customers, whether residential, commercial, or wholesale, which elect to acquire the City of Denton's Dyno Dirt products for their use. The City of Denton reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. RATES Dyno Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyno Soil (Top Soil Blend) (2) Dyno Dirt (3) Dyno Lite $27.50/Cubic Yard $22.50/Cubic Yard $30.00/Cubic Yard (B) Wood Mulch (1) Dyno Brown Mini Mulch (2) Dyno Deco Colored Mulch (3) Dyno Double Grind $17.50/Cubic Yard $30.00/Cubic Yard $17.50/Cubic Yard Purchases for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discount, purchases greater than 100 cubic yards will receive a 40% discount, and purchases greater than 500 yards will receive a 50% discount. (C) City of Denton departments will receive a 50% discount on all purchases of Dyno Dirt products (D) One cubic foot bags of Dyno Dirt $1.50/bag (50 Bag Minimum Purchase) (E) Asphalt Millings $lO.OO/Cubic Yard PRODUCT A V ATLABTLTTY The City of Denton produces Dyno Dirt products throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. 26 T,Of:ATTON All Dyno Dirt products may be purchased from the City of Denton at the following location: Locati on Address Compost Sales Bldg. Water Reclamation Plant 1100 Mayhill Road, Denton, Texas WHOT,FSAT,F PTJRf:HASFS All Dyno Dirt products purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is requested. 27 SCHEDULE GBL GRASSIBRIJSHII ,EA YES (Effective 10/1/05) APPT .If: A nON Applicable to all City of Denton residents who submit for deposit at the landfill grass clippings, brush, and/or leaves, who shall pay the following rates: GRASSIBRlJSHII ,EAVES' Product f:haracteri stj cs f:harge 1. Uncontaminated bagged or un-bagged $16.25/ton grass, brush, or leaves in less than twelve foot (12') lengths. 2. Uncontaminated bagged or un-bagged $27.00/ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Contaminated grass, brush, or leaves of any length: waste originating within Denton's city limits waste originating outside of Denton' s city limits $33.75/ton (<3 cubic yards) $39.00/ton (>3 cubic yards) $41. OO/ton 4. Whole trees and stumps $48.75/ton MTNTMl JM f:H A RGE $7.50 per load. Professional landscapers, tree trimmers, and yard maintenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer's location. Grass, brush, and leaves shall not be assessed the City of Denton solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not landfilled. 28 SCHEDULE ST WASTEWATER TAP FEES (Effective 1 % 1/05) APPT ,If: A nON This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WTTHf:LEANOlJT Si ze of T::Ip P::Ivea Street T Tnp::lvea Street 4 inch 6 inch 8 inch 10 inch $2,000.00 2,110.00 2,220.00 2,380.00 $1,410.00 1,570.00 1,730.00 1,865.00 M A NHOT ,E RREA KOT JT FEE 6" - 12" Line $165.00 FEES FOR TNST A T J ,A nONS NOT T JSTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 29 SCHEDULE STE TREA TED EFFT DENT W A STEW A TER TAP FEES (Effective 1 % 1/05) APPT ,IrA nON This schedule applies to the installation, removal, or relocation of treated effluent wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: RElJSE WASTEWATER LINE TAPS Si ze of T::Ip P::Ivea Street T Tnp::lvea Street 4 inch 6 inch 8 inch 12 inch $2,705.00 2,920.00 3,895.00 4,865.00 $1,625.00 1,895.00 2,815.00 3,730.00 FEES FOR TNST A T J ,A nONS NOT T JSTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 30 SCHEDULE OSSF ON-SITE SEW AGE F ACTT ,TY PERMIT FEES (Effective 10/01/04) APPI JCA nON This schedule applies to the new construction of aerobic treatment systems, new construction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Construction of aerobic treatment systems $410 New Construction of non-aerobic treatment systems $210 Repair or Alteration fees (All types of OS SF's) $50 31 SCHEDULE SD STORM DRAINAGE FEES (Effective 1 % 1/05) APPI ,IrA TION Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amount of impervious surface cover that results in water runoff into the City of Denton drainage system. MONTHTYFEE- RESIDENTIAl, (SDR) The residential fee is applicable to all single-family through fourplex real properties located within the incorporated limits of the City of Denton, Texas, for which impervious surfaces can be individually identified. The residential fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: Fee Block Per Bill o - 600 Square Feet 601 - 1,000 Square Feet 1,001 - 2,000 Square Feet 2,001 - 3,000 Square Feet 3,001 - 4,000 Square Feet 4,001 - 5,000 Square Feet 5,001 - 6,000 Square Feet Over 6,000 Square Feet $ 0.50 $ 1. 00 $ 3.35 $ 5.45 $ 7.60 $ 9.75 $12.00 $15.50 MONTHT Y FEE - NON-RESIDENTIAl, (SDN) The non-residential fee is applicable to all other real property owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The non-residential fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per bill 32 EXEMPTTONS The following real property owned and located within the incorporated limits of the City of Denton, Texas shall be exempt from imposition of the residential fee or the non-residential fee: 1. Real property with proper construction and maintenance of a wholly sufficient and privately- owned drainage system, not draining into the City of Denton drainage system, upon the real property's inspection and certification by the City; or 2. Real property held and maintained in its natural state, until such time that the real property is developed, and all of the public infrastructure constructed thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a structure has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residential fees or the non-residential fees are applicable. 33 SPEC:TAT, FAC:TTJTTES RIDER (Effective 1 % 1/05) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this rider. (2) The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. 34 SFrnON 2 That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SFrnON:) That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SFrnON 4 That the Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on and after October 1, 2005, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. 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: 35 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NUMBER 2004-258 AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; AMENDING THE RESIDENTIAL SOLID WASTE COLLECTION SERVICES SCHEDULE (SWR); AMENDING THE RESIDENTIAL RECYCLING AND PROCESSING SERVICES SCHEDULE (SWRR); AMENDING THE RESIDENTIAL FINANCIAL NEED DISCOUNT SCHEDULE (SWRD); ADDING THE MULTI-FAMILY RECYCLING AND PROCESSING SERVICES SCHEDULE (MFR); AMENDING THE COMMERCIAL SOLID WASTE COLLECTION SERVICES SCHEDULE (SWC); REMOVING THE COLLECTION AND TRANSPORTATION SERVICES PERMIT SCHEDULE (SWP); AMENDING THE SANITARY LANDFILL SERVICES SCHEDULE (SWL); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SFrTTON 1. That the charges for Solid Waste collection services as authorized by Section 24-42(b) of Article II, Section 24-66 of Article III and Section 24-4 of Article I of Chapter 24; and by Section 32-90 of Article IV of Chapter 32 of the Code of Ordinances of the City of Denton, Texas, are hereby established as follows: SOLID WASTE RATE SCHEDULES .M.G.E SWR Residential Solid Waste Collection Services 2 SWRR Residential Recycling and Processing Services 4 SWRD Residential Financial Need Discount 5 MFR Multi-family Recycling and Processing Services 7 SWC Commercial Solid Waste Collection Services 8 SWCR Commercial Recycling Services 13 SWL Sanitary Landfill Services 15 1 EXHIBIT 4 SCHEDULE SWR RESIDENTTAI, SOI,ID WASTE COI.T ,ECTTON SERVICES (Effective 1 % 1/05) APPI .TCA TTON Applicable for residential family-unit solid waste collection service. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any single unit or living space in which a person or single family resides. MONTHT Y RA TES Containerized Collection Service 1 pickup per week Nominal Size of Containers Large Medium Small 1 Container $ 17.25/bill $ 16.50/bill $15.75/bill 2 Containers $32.50/bill All refuse must be placed within the cart with the lid fully closed. Residents may contact Solid Waste Customer Service to request that the Solid Waste collection personnel reload their refuse cart with additional bagged refuse materials adjacent to the refuse cart at a price of $5.00 per additional cart reload and empty. These reload and extra empty services will be provided if the customer contacts the Customer Service Department and makes the request a minimum of one day prior to their scheduled collection day. Ragged Collection Service 1 pickup per week $19.00/bill MTNTMTTMRTT.T.TNGIRASE RATE SERVICE $15.00 per bill applicable for residential solid waste service for an unoccupied residential family unit which remains vacant for a period for greater than two months. This minimum billing rate shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of six months per calendar year. OTHER CHARGES There is no additional charge for the collection of bagged grass clippings and leaves, or brush and tree limbs which are cut and stacked in less than four foot (4') lengths, if the combined grass/leaves/brush total volume is not over eight cubic yards per collection day. If over eight (8) cubic yards of combined bagged grass clippings, brush, or leaves are placed out for collection on a collection day, excess volume charges will be assessed at $5.00 per cubic yard or part of a cubic yard collected for all cubic yards in excess of eight (8) cubic yards. The Solid Waste Department 2 staff will automatically collect and bill for excess volumes of yard waste if the additional charges are $25.00 or less. Residential customers may be provided metal containers and service at the published commercial rates. Residential customers shall contact Solid Waste Customer Service to request the collection of up to four bulky items per week on their refuse collection day for no additional charge. Customer Service should be contacted a minimum of one day in advance of their scheduled collection day. Bulky items are residential household type items that are consistent with residential household use, such as furniture and selected appliances. Bulky items exclude non-household type items, fencing, remodeling, construction and demolition materials, and those appliances manufactured containing polychlorinated biphenyls (PCB's) or chlorofluorocarbons (CFC's). Residential construction materials (including, but not limited to lumber, brick, fencing, and drywall) will be collected at the rate of $60.00 per pickup plus an additional $10.00 per cubic yard or part of a cubic yard collected above one cubic yard. Materials must not exceed eight (8') feet in length. Customers should contact Solid Waste Department Customer Service during normal business hours to request the collection of residential construction materials. If the customer has over 10 cubic yards of materials for collection, the customer is required to have a city container delivered, if collection service is desired. Appliances manufactured to contain PCB's or CFC's, for which the customer provides no certified removal documentation of the PCB's or CFC's, will be charged $50.00 for the collection and disposal of each appliance and/or the associated materials. There is no charge for the collection of appliances which were manufactured to contain either PCB's or CFC's, if the customer provides a certificate of documentation from an approved business qualified to remove these products indicating that the PCB's or CFC's have been properly removed for disposal. If the Solid Waste Department is not provided a certificate of removal, the $50.00 charge per item will be assessed if the customer requests services through the Solid Waste Department. Other residential services may be provided at fees established by the department, and approved by the Director. The fees established will recoup the special and administrative services provided. When initiating new service, a residential Solid Waste service deposit may be charged. 3 SCHEDULE SWRR RESIDENTIAl, RECYCT JNG AND PROCESSING SERVICES (Effective 1 % 1/05) APPI JCA TION Applicable for residential family-unit recycling materials collection and processing services. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any single unit or living space in which a person or single family resides. MONTHT Y RA TE $3.50 per bill Should any other fees be established by an authorized governmental entity, those fees will be added to the monthly rate to recover those costs. MTNTMT JM BIT J ,ING $3.50 per bill If any other fees are established by an authorized governmental entity, the minimum billing would adjust to include those costs. EXCEPTION TO IMPOSITION OF RATE The residential recycling and processing services rate will not be charged for an unoccupied residential family unit that applies for and is granted the Minimum Billing/Base Rate Service as described in Schedule SWR. This exception shall be effective so long as the Minimum Billing/Base Rate Service rate is applicable to the unoccupied residential family unit. 4 SCHEDULE SWRD RESIDENTIAl, FINANCIAl, NEED DISCOlJNT (Effective 1 % 1/05) APPI JCA TION Applicable for residential family-unit solid waste collection and recycling collection and processing service customers. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any single unit or living space in which a person or single family resides. QlJ ALTFICA TION Residents who wish to receive the Residential Financial Need Discount shall qualify for the discount if the following requirements are met: 1. They receive financial assistance from the Plus One Program; and. 2. They are a City of Denton residential solid waste customer; and. 3. They inform the City's Customer Service Department of their desire to participate in the program. DISCOlJNT TERM The discount is effective for each family for those months in which they receive funding from the Plus One program. MONTHT Y DISCOIJNT RA TE A reduction of the Residential Solid Waste Service charges by $3.50 per bill. The rate reduction applies to both the total monthly refuse and recycling charges. EXCT .I TSIONS The Residential Financial Need Discount IS not applicable if the customer IS on mInImUm billing/base rate service. 5 SCHEDULE MFR MlJLTT-FAMTLYRECYCLTNG AND PROCESSTNG SERVICES (Effective 1 % 1/05) APPT JCA TTON Applicable for multi-family residents living within the City of Denton's solid waste service area. These residents receive, participate in, and benefit from numerous City of Denton recycling and . . proceSSIng servIces. A multi-family unit includes each separate living unit of a four-plex, apartment, condominium, or other such multi-family living facility with four or more residences. Facilities that are constructed as boardinghouses, or contain living facilities with separate bedrooms for lease by each tenant, but that contain one common kitchen and/or open living area, will qualify as one living unit, and one multi-family recycling and processing charge will apply. MONTHT ,Y RA TE $1.75 per bill per multi-family living unit. MTNTMl JM BIT ,I ,TNG $1.75 per bill per multi-family living unit. 6 SCHEDULE SWC COMMERCIAl, SOIJD WASTE COI .I ,ECTTON SERVICES (Effective 1 % 1/05) APPI JCA TTON Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of Denton. New commercial business development and redevelopment requires that commercial solid waste service requirements be reevaluated and services be provided under current service requirements. Business development includes, but is not limited to any of the following: new business construction, existing business expansions or remodeling, and existing business site revisions. With these occurrences, the Denton Development Code and Site Plan Criteria Guidelines will apply. MONTHT Y RA TE Commercial refuse collection services are provided through a volume-based rate system. Refuse will be collected in city approved, city provided containers only. A. PERMANENT FRONT I DAD CONT ATNER SERVICE (Long Term Scheduled Service) 1. R CITRIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 8 $108.00 2 16 $217.00 3 24 $331.00 2. () CITRIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 6 $ 88.00 2 12 $178.00 3 18 $271.00 7 3. 4 nJRTf: YARD f:ONTATNER Front Load Side Load Pickups Cubic Yards Rate Per Rate Per Per Week Per Week Bill Bill 1 4 $68.00 $79.00 2 8 $137.00 $160.00 3 12 $208.00 $242.00 4. 2 & 3 f:1JRTf: YARD f:ONTATNERS Front Load Side Load Pickups Cubic Yards Rate Per Rate Per Per Week Per Week Bill Bill 1 3 $55.00 $65.00 2 6 $112.00 $131.00 3 9 $171.00 $199.00 The Solid Waste Department will establish rates to recover the full cost of service for collection services at frequencies greater than three times per week. New two yard and side load container services are no longer available. Customers currently receiving two yard or side load container services that discontinue these services may not reinstate them in the future. 5. f:ONT A TNER EXTR A SER VTf:E (F or a container reload and extra empty) f:ont::liner Size 2 & 3 CY container 4 CY container 6 CY container 8 CY container f:ollection Service Fee $31.00 per pickup $36.00 per pickup $47.00 per pickup $59.00 per pickup These extra service fees apply if the truck, while on route, remains on-site to provide the additional service. The driver waits while the customer reloads the container. On-site waiting time in excess of fifteen (15) minutes will be charged to the customer at the rate of $85.00 per hour. Waiting time will be billed in fifteen- minute increments. If the driver is called in from off-site to provide same day extra service, there is a $50.00 same day service charge, plus the applicable collection service fee. B. f:OMMERf:TAL f:ART SERVTf:E Commercial cart service is not available city-wide. In those areas where commercial cart collection is available, small quantity waste generators may contract for once per week cart service. All waste must be contained in the cart. Bulky item collection services are not provided for commercial cart service customers. 8 One (1) pickup per week service: Cart Capacity LCart Large $ 17.25/bill 2 Carts $32.50/bill A maximum of two carts is available. Service above this level will require the placement of a metal container. Extra empties performed while on-site will be provided at the one-cart rates listed above. Customers on commercial cart service where fully automated collection service cannot be provided will be charged an additional $2.00 per month per cart for providing semi- automated or manual collection service. C. TEMPORARYFRONTLOADCONTATNER SERVTCE Container Size 4 CY container 8 CY container Monthly Container Rental $34.00/bill $56.00/bill Coli ecti on Servi ce Fee $65.00 per pickup $88.00 per pickup Temporary service accounts incur container delivery charges to initially place the containers. The use of a temporary container requires a minimum collection service and/or billing a minimum of once a month. D. ROT J ,-OFF OPEN TOP CONTATNER SERVTCE Container Size 15 CY container 20 CY container 30 CY container Monthly Container Rental $70.00/bill $85.00/bill $98.00/bill Coli ecti on Servi ce Fee $203.00 per pickup $258.00 per pickup $304.00 per pickup Customers that request the driver wait while they reload the container, in order for the City to provide an additional empty(s), will be charged the collection service fee and on- site waiting time in 15 minute increments at the rate of $85.00 per hour. The use of a temporary roll-off container requires mInImUm service and/or billing a minimum of once a month. The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. Construction and demolition material (C&D) collections will be provided using 20 cubic yard containers. 9 E. ROLL-OFF COMPACTOR CONTAINER SERVICE Container Size 30 CY compactor 42 CY compactor Monthly Container Rental $307.00/bill $351.00/bill Collection Service Fee $356.00 per pickup $411. 00 per pickup The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. F. () CTJRTC YARD COMPACTOR SERVTCE Pickups 1 2 3 Monthly Container Rental $120.00/bill $120.00/bill $120.00/bill Extra Empty while on-site: $75.00 Collection Service Fee $136.00 per pickup $398.00 per pickup $685.00 per pickup G. MUT TT-F AMTT Y RUT XY TTEM COT J ,ECTTON SERVICE Container Size 4 CY SL container 8 CY FL container Monthly Container Rental $ 17.25/bill $19.50/bill Coli ecti on Servi ce Fee $37.00 per pickup $52.00 per pickup These services are provided for the collection of residential household bulky items. Items which will not be collected include: refrigerators, freezers, air conditioners, or any other item manufactured to contain CFC's or PCB's. Collection services using these containers shall occur during the customer's normal refuse collection route service. The customer must contact Customer Service and request the bulky item container collection service on the day prior to the requested collection date. Items placed in the container may not extend beyond seven (7) feet high from the bottom of the container. If the container is not serviced during the scheduled refuse collection route, and the customer desires a special collection service, services will be provided at the standard service fees. If the bulky item container is contaminated with refuse, construction materials, or contains other non-bulky materials, the standard service fees will apply. H. SHARED COMMERCTAL CONTATNERS Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Department staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. 10 I. MTNTMlJM COMMERCIAL CHARGE A minimum charge of $17.25 per bill will be charged to all commercial solid waste customers. Shared accounts are subject to other applicable service fees. Customers on commercial cart service where fully automated collection service cannot be provided will be charged an additional $2.00 per month per cart for providing semi- automated or manual collection service. J. SPECIAL WASTE Denton's acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the waste requested for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the Director of Solid Waste, for the collection and disposal of special waste, will be established based on the type of special waste, and the requirements for collection and disposal of the waste. K. SERVICE REQUIREMENTS AND CHARGES A delivery fee of $75.00 per container will be charged to all customers for roll-off containers. A delivery fee of $50.00 per container will be charged to all customers for front load or side load containers. A relocation fee of $75.00 will be charged for each roll-off container that is relocated at the customer's site, unless relocation occurs during a service. Front load and side load container relocations are charged $50.00 per service. A $50.00 fee will be charged for each request for same day service. The Solid Waste Department Customer service personnel must receive on-demand service requests prior to 11 :00 AM. on the day service is requested in order to provide same day collection service. An access fee will be charged for containers that present accessibility problems, and/or additional services or time. Containers that are inaccessible at the time of collection will be charged an inaccessible fee of $75.00 for roll-off containers and $50.00 for all other containers. On-site waiting time will be charged in fifteen (15) minute increments at the rate of $85.00 per hour. A $125.00 fee will be charged for the Solid Waste Department's installation or removal of container locks. Loaded side-load containers shall not exceed a total weight of one ton. Loaded front-load 11 containers shall not exceed a total weight of two tons. Any container evaluated by the City's collection manager to contain excess weight shall be emptied by the customer to the level determined by the collection manager prior to being serviced. Tickets and/or fines for overweight roll-off loads, and the City's administrative costs, are the responsibility of the customer, and shall be paid by the customer. A minimum of once per week pickup service is required for those containers in which putrescible waste is placed. Bulky items may be delivered to the landfill by the customer. Solid waste customers may deliver up to four (4) times per month, and up to 200 pounds of bulky items per delivery, to Denton's landfill at no charge. Loads in excess of 200 pounds will be charged landfill rates. Appliances manufactured to contain PCB's or CFC's, for which the customer provides no certified removal documentation of the PCB's or CFC's, will be charged $50.00 for the collection and disposal of each appliance and/or the associated materials. There is no charge for the collection of appliances which were manufactured to contain either PCB's or CFC's, if the customer provides a certificate of documentation from an approved business qualified to remove these products indicating that the PCB's or CFC's have been properly removed for disposal. If the Solid Waste Department is not provided a certificate of removal, the $50.00 charge per item will be assessed if the customer requests services through the Solid Waste Department. Overflowing and excess waste containers, which are determined to necessitate collections by solid waste personnel, will be charged a $50.00 service fee, plus a $40.00 charge per cubic yard for overflowing and excess waste outside the container, which is collected, containerized, and serviced by Solid Waste Department personnel. Other commercial services may be provided at fees established by the Solid Waste Department, and approved by the Director of Solid Waste. The fees established will recoup the costs and administration of the special services provided. For permanent containers, a commercial solid waste service deposit, if required, will be charged based on two months of the projected billing amount. Following a service review, if the deposit is determined to be under-projected, additional deposit funds are required to continue receiving service. For temporary containers, a commercial solid waste service deposit is required. It will be charged at 50% of the estimated billing amount, or two months of estimated service, whichever is less. Following a service review, if the deposit is determined to be under- projected, additional deposit funds are required to continue receiving service. 12 SCHEDULE SWCR COMMERCIAl, RECYCIJNG SERVICES (Effective 1 % 1/05) APPI JCA nON Owners and managers of various multi-family living units, businesses, commercial and institutional businesses, and properties receiving commercial solid waste collection services are subject to receive a refuse audit to determine if they generate enough commercial recyclables to warrant receiving commercial recycling services. Commercial recycling services are available to specific commercial customers only. QIJAI JFICA nON Commercial recycling is not available for all multi-family living units and commercial and institutional businesses operating within the City of Denton. The Director of Solid Waste or designee will evaluate interested and solicited commercial businesses and the projected volume of recyclable materials from these businesses to determine if commercial recycling services justify being provided. MONTHT Y RA TE Rates will recover the cost of service. Rates will vary by container size, frequency of collection service provided, and the commodity collected. Based on the recyclable volumes projected, and the City's recommendation, collection services will be provided using either a fixed or demand response collection schedule. MTNTMl JM BIT J JNG The minimum billing required is the amount of service provided and applicable for billing each month. ACCEPTABLE RECYCLABLE MATERIALS Acceptable materials depend on local commodities markets and will be mutually agreed upon by the commercial recycling customer and the City. NON-ACCEPTABI,E MATERIAl,S Only materials mutually agreed upon by the commercial recycling customer and the City are acceptable in the provided recycling container. The owner/manager of the commercial entity is the party responsible for notifying his/her personnel of proper recycling procedures. 13 RTGHT OF T,OAD REFTTSAT, The City reserves the right to refuse recycling loads contaInIng any materials other than the contracted material. If a load is refused as recycling by the City, it will be handled as municipal solid waste (MSW) and incur both the contracted recycling charges as well as associated commercial solid waste disposal rates. OTHER CHARGES All other solid waste services performed will be charged at listed solid waste rates, or at fees established to recoup the costs and administration of the services provided. RECYCT ,ART ,E MA TERTAT ,S SAT ,ES Recyclable glass, plastic, metals, wood, and fiber materials may be sold at no less than forty-five percent of the current market index price. 14 SCHEDULE SWL SANTT ARY T ,ANDFTT J, SERVICES (Effective 10/1/05) A. MTJNT(:TPAL SOLm WASTE (MSW)DTSPOSAL RATES: 1. RETAIL RATES a. Uncompacted Waste [Load capacity ofless than three (3) cubic yards] [This waste excludes construction and demolition (C&D) materials.] $33.75 per ton for waste originating within Denton's city limits $41.00 per ton for waste originating outside of Denton' s city limits b. Uncompacted Waste [Load capacity of three (3) or more cubic yards] $39.00 per ton for waste originating within Denton's city limits $41.00 per ton for waste originating outside of Denton's city limits c. Compacted Waste $35.00 per ton for waste originating within Denton's city limits $37.00 per ton for waste originating outside of Denton's city limits 2. WHOLESALE RATES a. Compacted Waste [Load capacity equal to twenty-five (25) or more cubic yards] $21.00 per ton for waste originating within Denton's city limits $23.00 per ton for waste originating outside of Denton' s city limits b. Uncompacted Waste [Load capacity equal to fifty (50) or more cubic yards] $21.00 per ton for waste originating within Denton's city limits $23.00 per ton for waste originating outside of Denton' s city limits When the scales are inoperative, or accurate weights cannot be determined, the following rates may be charged based on the gross volume capacity of the vehicle, container, or trailer, if no more accurate method is available. Uncompacted Refuse Compacted Refuse $6.00 per cubic yard $8.50 per cubic yard The current State of Texas landfill surcharge of $1.25 per ton is included in the above disposal rates. Any additional assessment or fees established by a government entity will be added to the disposal rates and assessed on all waste delivered to the landfill. B. MTNTMlJMLANDFTT,L CHARGE There shall be a $10.00 minimum charge per load for all materials delivered to the landfill. 15 C. MTXED LOADS Customers bringing mixed loads of municipal solid waste, yard waste, and bulky items to the landfill will be charged the applicable rate, or rates to cover the cost to handle wastes of various types, characteristics, and amounts. D. TIRES Charge Per Whole Tire Charges for tires not shredded or quartered: 1. Automobile and Pickup tires 2. Commercial and Industrial truck tires 3. Off-road tires with larger than a 24.5" wheel diameter $5.00 $7.00 $15.00 E. YARD WASTE 1. Whole trees and stumps 2. Clean bagged or un-bagged grass, leaves or brush in less than twelve (12') foot lengths 3. Clean bagged or un-bagged grass, leaves, or brush greater than twelve (12') lengths $48.75 per ton $16.25 per ton $27.00 per ton All contaminated yard waste in this category will be charged a MSW disposal rate. F. HI IT KY ITEMS Bulky items may be delivered to the landfill by the customer. Solid waste customers may deliver up to four times per month, and up to 200 pounds of bulky items per delivery, to Denton's landfill at no charge. Loads in excess of 200 pounds will be charged landfill rates. For appliances, which were manufactured to contain PCB's or CFC's, and for which no certified removal documentation is provided, there will be a $50.00 charge per appliance. G. INERT MA TERTAT ,S $10.00 per ton Asphalt/Concrete: Inert materials include clean and uncontaminated loads of millings, concrete, asphalt, road-base, or similar materials, which may be recycled. The posted inert materials rate will be charged, or rates to cover the cost to handle various types, characteristics, and amounts of these and other acceptable inert materials. Periodically these materials may be sold to Denton's citizens. BrickIBlock: Clean and uncontaminated brick and block will be accepted at the landfill at no charge. H. SAND, CLAY, MIXED SOIL, AND ROCK SALES The Solid Waste Department may sell excess sand, clay, mixed soil, and rock to the public. 16 Vehicle Gross Volume - In Cuhic Yards (CY's) 1.0 - 3.0 CY's 3.1- 8.0 CY's 8.1-16.0 CY's 16.1-28.0 CY's 28.1- 50.0 CY's Rates are per Cubic Yard Sand ~ Mixed $5.00 $8.00 $7.50 $3.00 $5.00 $4.50 $2.50 $4.00 $3.75 $2.00 $3.20 $3.00 $1.75 $2.80 $2.64 Customers wishing to purchase large volumes of soil, and load their own vehicles will be required to provide proof of insurance meeting the city's minimum liability insurance coverage. Those customers will pay a rate equal to 50% of the 28.1 to 50.0 cubic yardage volume rate. These large volume sales will require pre-approval by the Director of Solid Waste. The soils must be excess to the needs of the Solid Waste Department. Pricing for special soils will be established by the Director of Solid Waste at a rate to fully recover costs, but will not be less than 20% below the large volume rates. Large Rock will be sold on a per ton basis. 1.0 - 3.0 Tons 3.1 - 50.0 Tons $1.10 per ton $1. 00 per ton I. SPECIAL WASTE The acceptance by the landfill of and the disposal of Special Waste is conditional. Acceptance of Special Waste is subject to Federal and State laws and regulations. The City of Denton has the right to refuse to accept or dispose of special waste at its discretion. Charges for the disposal of Special Waste will be established based on the type, characteristics, and amounts of Special Waste, as well as the requirements for disposal of the waste. Such charges shall be established by the Director of Solid Waste. J. TJNSECTJRED I DADS In compliance with State regulations, solid waste loads that are not adequately secured to prevent the material from spilling will be charged an Unsecured Load Charge of $20.00 for each load. K. OTHER CHARGES Other landfill services that are not otherwise listed under this Schedule SWL, may be provided by the City at fees established by the Director of Solid Waste. Such fees shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the non-listed landfill services. 17 SECTION 2 That the Director of Solid Waste of the City of Denton is hereby authorized to deny the use of the City of Denton landfill to any customer who provides false information regarding the origin of, or the composition of the solid waste delivered for disposal to the landfill; or for safety violations committed by a customer within the landfill; or for non-compliance with verbal and written instructions provided to the customer by Solid Waste Department personnel at the landfill; or for nonpayment of delinquent funds owed by the customer to the City of Denton, Texas; or for any violation of the law committed by the customer within the landfill; or for any non-compliance by the customer with the Texas Commission on Environmental Quality regulations or policies; or for any non-compliance by the customer with the City of Denton's Code of Ordinances or rules; or for any violation of the written landfill rules by the customer as posted by the Solid Waste Department at the entrances to the landfill, from time to time. SECTION 1. That it is in the public interest that the provisions of Sections 26-3,26-4,26-5,26-7, 26-8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. SECTION 4. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION h. That this ordinance shall become effective, charged, and applied to all solid waste services rendered on and after October 1, 2005; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: 18 APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: 19 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY CUSTOMERS AND TAXPAYERS CONTAINED IN ORDINANCE NO. 2004-387 AND AS ALSO AMENDED DURING PREVIOUS FY 2004-2005; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Denton customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Electric Meter Installation Charge 3 Electric and Water Meter Connection Charge 3 Delinquent Service Charge 4 Unauthorized Usage Penalty 4 B. METER CHARGES Meter Reading 5 Meter Testing 5 Meter Tampering and/or Damage Charge 5 Meter Inaccessibility Charge 6 C. MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge 7 Service Deposits 7 1 EXHIBIT 5 Waiver of Service Deposits Late Payment Charge Due on Delinquent Balances Interest Charge on Past Due Account Balance Credit Report Charge Interest Earned on Contract Retainage 8 8 9 9 9 2 ACCOUNT CONNECTION AND RECONNECTION CHARGES (Effective 1 % 1/05) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. ELECTRIC METER INSTALLATION CHARGE APPLICATION Applicable when a customer requests electric service on a first time basis where no permanent service previously existed and where a new account number is established. CHARGE First Service Requested $22.00 First Service Requested, after business hours $35.00 ELECTRIC AND WATER METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service at an address which has eXIstmg or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE Electric Service Requested Water Service Requested $11. 00 $11. 00 Electric Service Requested, after Business Hours $25.00 Water Service Requested, after Business Hours $25.00 3 DELINQUENT SERVICE CHARGE (Effective 1 % 1/05) APPLICATION Applicable when a customer's account is processed for disconnection due to nonpayment. CHARGE Delinquent Service Charge $22.00 Reconnect Charge, after business hours $55.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails to request connection of services within 24 hours of occupancy in a new service location. CHARGE Unauthorized Usage Penalty $30.00 4 METER CHARGES (Effective 1 % 1/05) METER READING APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $25.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test $27.00/KWH Electric Meter $38.00/KW/KWH Electric Meter ACCURACY STANDARDS A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $200.00 minimum per connection per system 5 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $38.00 6 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 1 % 1/05) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer's or taxpayer's check, or money order, or bank draft for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker's bank and returned to the City of Denton unpaid. CHARGE Per Check $27.00 SERVICE DEPOSITS APPLICATION Applicable when a residential customer requests utility service in the City of Denton service area and does not have twelve (12) months of good credit standing with the City of Denton or another utility system for the type of service requested, or does not have a co-signer with twelve (12) months of good credit standing with the City of Denton, or does not request and demonstrate a passing credit rating through a credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) months of good credit standing with the City of Denton, or a commercial letter of good credit from another utility system. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of Denton as security for payment. CHARGE Residential Customer $150.00 or an amount equal to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non- payment, then the customer will be required to pay a deposit sum up to but not greater than 1/6 of the last 12 months of billing at the service location. Commercial Customer $300.00 or an amount equal to 1/6 of the last 12 months of billing at the service location, whichever is greater. If utility service is disconnected for non-payment, then the customer will be required to pay a deposit 7 sum equal to 1/6 of the last 12 months of billing at the service location. Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer's account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer's account. WAIVER OF SERVICE DEPOSITS APPLICATION Applicable when an Applicant is a citizen of the City of Denton, Texas and who also is a "victim of family violence," applies for utility service in the City of Denton, Texas. To be a qualified as a "victim of family violence" an Applicant must secure and provide a certification letter, provided by one of the certifying entities to the Utilities Customer Service Department. If a proper, dated and completed certification letter is presented by or on behalf of the Applicant to the Utilities Customer Service Department, and its issuance is verified by the Utilities Customer Service Department, then the requirement of a utility deposit shall be waived for that Applicant. This provision is applicable solely to "victims of family violence" as defined by Texas Family Code, 971.004, as amended. No other relief from the City's utility rates, or deposits, or charges, or fees is hereby provided to "victims of family violence." LA TE PAYMENT CHARGE DUE ON DELINQUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $10.00 late payment charge 8 INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month's billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month's billing statement. CHARGE 1 % / month on all past due charges and account balances unpaid at the time of the current month's billing calculation. ** **Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. CREDIT REPORT CHARGE APPLICATION This fee is applicable if the customer: (a) cannot provide a satisfactory credit rating through previous service history with Denton Municipal Utilities or another utility service; or (b) cannot provide the city with a qualified co-signer, and (c) provides written authorization for the city to obtain a credit rating from a credit source available to the city. CHARGE Charge per credit report $13 .00 INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX REV. CIV. STAT. ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of interest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. 9 SECTION 2. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. That this ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 2005; and a copy of said fees and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. 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: 8:IOur DocumentslOrdinancesl051FY 2006-Miscellaneous Rate Ordinance-D1.doc 10 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of the Electric, Water, Wastewater, Solid Waste, Miscellaneous and Utility Engineering Rate Ordinances. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The proposed rate ordinances included in this agenda are designed to recover the cost of service for each utility and provide a positive or breakeven net income. During the budget presentations, the Council reviewed each Utilities budget and the proposed rate changes that could be implemented to support the proposed FY 2005-06 budget and FY 2006-10 CIP. Included in the presentations was the increase in the Electric rates that were not increased on January 1,2005. At Council's direction staff developed proposed base rate increases for the remaining rate classes with the goal of having the overall impact of the changes fall as close as possible to the 3.5% average increase previously applied to the residential, commercial, and industrial classes. Wastewater rates were increased based on the direction given by the PUB and Council during the FY 2004-05 budget presentations, which outlined future rate increases. Staff has also developed a rate structure for Solid Waste that will support once per week cart service and a Household Hazardous Waste program. Also included in the attached rate ordinances is the Engineering Inspection Fees Ordinances. In FY 2004-05 Engineering and the associated revenues were transferred to the Water Fund. Staff has since included these fees in the annual rate ordinance review to the Public Utilities Board and received approval. In the past these fees were in several different ordinances and not reviewed on an annual basis. Staff has revised the current rates to reflect full cost recovery and combined all engineering fees into one ordinance. SUMMARY No base rate increases are proposed for Water retail customers. The various Electric, Water Wholesale, Wastewater and Solid Waste rate changes discussed during the budget review are outlined in greater detail below. All changes have been highlighted in red in the attached ordinances. ELECTRIC RATE RECOMMENDATIONS . Increase the Local Government Rate Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Demand Charge from $6.31 to $6. 81/KW Energy Charge from 3.03~ to 3.15~/KWH . Increase the Weekend Rate Single-Phase Facility Charge from $20.00 to $20.86/bill Three-Phase Facility Charge from $25.00 to $26.08/bill Demand Charge from $6.40 to $6.72/KW Energy Charge from 6.75~ to 7.02~/KWH for the first 2,500 KWH 3.00~ to 3.67~/KWH for the next 3,500 KWH 2.65~ to 2.70~/KWH for all additional KWH . Increase the Athletic Field Rate Single-Phase Facility Charge from $20.20 to $21.07/bill Three-Phase Facility Charge from $30.30 to $31.60/bill Demand Charge from $4.70 to $4.94/KW for Peak Hours (June- September) $1.11 to $1.17/KW for All Other Hours (June-September) $1.11 to $1.17/KW for All Hours (October-May) Energy Charge from 7.58~ to 7.96~/KWH for Peak Hours (June-September) 3.79~ to 3.98~/KWH for All Other Hours (June-September) 3.79~ to 3.98~/KWH for all additional KWH (October-May) . Increase the Street Lighting Rate LSA 100 W Sodium Vapor Facility Charge from $4.90 to $5. 15/bill LSB 250 W Sodium Vapor Facility Charge from $6.95 to $730/bill LSC 400 W Sodium Vapor Facility Charge from $8.75 to $9. 19/bill . Increase the Traffic Lighting Rate and Other Lighting Rate Energy Charge from 5.30~ to 5.62~/KWH . Increase Security Lighting Rate DSA 100 W Sodium Vapor Facility Charge from $7.75 to $8. 14/bill DSB 250 W Sodium Vapor Facility Charge from $10.05 to $10.76/bill DSC 400 W Sodium Vapor Facility Charge from $12.35 to $12.97/bill DHA 250 W Metal Halide Facility Charge from $12.05 to $12.65/bill DHB 400 W Metal Halide Facility Charge from $14.35 to $15.07/bill . Increase the Downtown Decorative Lighting Rate Facility Charge from $3.85 to $4.04/bill . Add a Decorative Street Lighting Rate Energy Charge 5.62~/KWH plus applicable ECA rate . Temporary Service Schedule Single-Phase Facility Charge from $15.15 to $15.80/bill Three-Phase Facility Charge from $20.20 to $21.1 O/bill Energy Charge from 6.77~ to 7.11~/KWH . Add a Dark Fiber Rate Fiber Mileage Charge Building Presence Charge Total Fiber Rate $400/fiber pair/mile/month; and $180/location/month $580/fiber pair/mile/month/location WATER RATE RECOMMENDATIONS . Revise the Wholesale Raw Water Rate (WRW) applicable to Upper Trinity Regional Water District (UTRWD). The FY 2005 City of Dallas raw water wholesale rate is projected to be $0.4406/1,000 gallons, an increase of 9.51 % from the existing rate of $0.3987/1,000 gallons. Denton's raw water wholesale rate to UTRWD, which is set at 85% of Dallas' raw water wholesale rate, will correspondingly increase from the existing price of $0.3389/1,000 gallons to $0.3745/1,000 gallons. This rate is determined by the terms of the raw water contract between Denton and UTRWD. . Increase the rate for the pass-through raw water sent from Lake Chapman into Lake Lewisville by the UTRWD per the Cooper Reservoir Project Contract and all "Chapman" water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville. The rate will increase from $0.0207/1,000 gallons to $.0212/1,000 gallons. The rate adjustment is determined by the consumer price index, which as of June 30, 2005 is 2.5% over the same period last year. W ASTEW A TER RATE RECOMMENDATIONS . Increase all retail and wholesale facility, volume, and surcharges by 6% per the budget proposal. . Remove the Dyno Chips product-line as it is no longer produced. . Add an Asphalt Milling rate of $8.00/cubic yard SOLID WASTE RATE RECOMMENDATIONS . Increase the residential cart rate for each cart size per the following: 1 cart servi ce Large from $15.00 to $17.25 Medium from $13.00 to $16.50 Small from $12.00 to $15.75 2 cart servi ce Large from $28.00 to $32.50 . Increase the rate for Residential Manual bagged pickup service from $17.75 to $19.00 for those customers requiring manual pickup and reducing the number of pickups per week from two to one. . Increase the minimum billing rate from $11.70 to $15.00 for unoccupied residential family units remaining vacant for a period greater than two months and maintaining other utility services. . Increase the residential construction materials rate from $50.00 to $60.00 for one cubic yard or less and $10.00 for each additional cubic yard or part of a cubic yard. . Increase the residential recycling rate from $2.99 to $3.50 to fund Household Hazardous Waste. . Establish a multifamily recycling rate of $1.75 per unit to fund recycling and Household Hazardous Waste. . Increase all the commercial collection services by an average of 5%. . Remove Schedule SWP - Collection and Transportation Services Permit . Include in the Sanitary Landfill Services the sale of excess sand, clay, mixed soil and rock at the published rates. MISCELLANEOUS RATE RECOMMENDATIONS . Removal of the "Interest Earned on Contract Retainage" section of the Miscellaneous Rate Ordinance since it is covered by state statute. ENGINEERING INSPECTION FEES RECOMMENA TIONS Right-of-Way Inspections Overtime Inspections $35.00 $50.00 to to $75.00 $90.00 These Right-of-Way and Overtime inspection fees were last updated in 1999 and did not reflect full cost recovery at that time. Parking Lot Inspections 1 - 50 spaces $100.00 to 51 - 100 spaces $200.00 to 101 - 250 spaces $300.00 to 251 - 500 spaces $400.00 to $450.00 $600.00 $750.00 $900.00 Parking Lot Inspections were also last updated in FY 1999. The above increased fees are based on the average number of trips to perform all inspections and the time allocated to those trips multiplied by the proposed hourly rate of $75.00. Fees for appeals and variances to the Traffic Safety Commission have been increased from $250.00 to $300.00. Loading Zone Permits and Renewals Single Loading Zone $132.00 to $175.00 Double Loading Zone $264.00 to $350.00 Loading Zone Permits were last updated in FY 1993. Though the increases may seem excessive, the previous rates were not designed to fully recover cost. The proposed fees have been adjusted to fully recovery inspection costs associated with development, as are all other utilities rates. OPTIONS 1. Approve the rates as recommended by the Public Utilities Board. 2. Recommend different rates than recommended by the Public Utilities Board. RECOMMENDA TION Staff recommends approval of the proposed ordinances. PRIOR ACTIONIREVIEW (Council, Boards, Commission) The Public Utilities Board recommended approval of the proposed rate ordinances on August 22, 2005 by a vote of 5-0. FISCAL SUMMARY The rates and charges included in the utility rate ordinances provide the revenues necessary to cover the cost of service to customers. EXHIBITS 1. FY 2005-06 Electric Rate Ordinance 2. FY 2005-06 Water Rate Ordinance 3. FY 2005-06 Wastewater Rate Ordinance 4. FY 2005-06 Solid Waste Rate Ordinance 5. FY 2005-06 Miscellaneous Rate Ordinance 6. FY 2005-06 Engineering Inspection Fees Ordinance 7. PUB Minutes Respectfully submitted: Howard Martin ACM Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE PAYMENT OF INSPECTION SERVICES FEES TO THE CITY OF DENTON FOR PUBLIC IMPROVEMENTS CONSTRUCTED BY DEVELOPERS, RELATED TO PRIVATE DEVELOPMENT; PROVIDING FOR THE SUPERSEDING OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas incurs administrative expenses in providing inspection services for public improvements which are constructed by developers, and should be properly borne as fees by developers; and WHEREAS, when contractors or utilities perform work within City of Denton right-of-way, the City incurs right-of-way inspection and administrative expenses, which should be properly borne as fees by the contractor or utility requesting services; and WHEREAS, when commercial establishments require loading zones, or parking lots, or commercial establishments file variances or appeals to the Traffic Safety Commission regarding the proper traffic flow and safety, the City of Denton thereby incurs inspection and administrative expenses, which should be borne as fees to the commercial establishment seeking the City action; and WHEREAS, the City Council finds that such fees as are recited herein bear a reasonable relationship to the actual administrative costs and expenses incurred by the City of Denton to conduct such inspections, and that the following ordinance should be enacted; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. That a public works inspection fee is hereby established in an amount equal to 3.5% of the cost to construct public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City's authorization to proceed with construction of the pubic improvements. The cost to construct the public improvements is the cost set forth in the public improvements agreement by and between the City and the developer. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the "Overtime Fee") shall be paid to the city based upon the following hourly rate: $90.00 per hour as of and after the effective date of this ordinance. EXHIBIT 6 A minimum Overtime Fee shall be deposited with the City based upon four hours, at least 24 hours before the overtime inspection is scheduled to start; except that the weekend overtime deposit my be received on or before 12:00 p.m. of the Friday immediately preceding the weekend overtime period. If there are more than four overtime inspection hours, developer will be billed for such additional hours, which shall be paid no later than fifteen (15) days after the date of the billing, and prior to incurring additional overtime inspections. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. SECTION 3. A right-of-way inspection fee is hereby established in an amount equal to $75.00 per hour, with a minimum of one hour for each inspection conducted. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the "Overtime Fee") shall be paid to the city at a rate of $90.00 per hour. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking construction or repairs with the City right-of-way no later than fifteen (15) days after the date of the invoice. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. Failure to pay the fee in full may result in the City terminating the contractor's or utility's right to work within the City right-of-way. SECTION 4. A parking lot permit inspection fee is to be paid to the City of Denton, and is hereby established in an amount equal the following: Parking lot permit fees 1 - 50 spaces 51 - 100 spaces 101 - 250 spaces 251 - 500 spaces $450.00 $600.00 $750.00 $900.00 This parking lot permit inspection fee must be paid to the City by the developer or contractor of such facility prior to the City's authorization to proceed with construction of the parking lot facilities. SECTION 5. A fee for appeals or for variances to the City of Denton Traffic Safety Commission is to be paid by the Applicant to the City of Denton, and is as follows: Fees for appeals or variances to Traffic Safety Commission Fee per appeal or variance $300.00 SECTION 6: A loading zone permit fee is to be paid by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year That any renewal of a loading zone permit shall require the payment by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year SECTION 7. All ordinances of the City of Denton, Texas, including without limitation, Ordinance No. 99-299 and Ordinance No. 2000-300, that are in conflict with this ordinance are hereby superseded by this ordinance, to the extent of any such conflict. This ordinance and Ordinance No. 99-299 and Ordinance No. 2000-300 are controlling over anything contained in the Construction Design Criteria Manual (the "Criteria Manual" of the City) pertaining to inspection fees, including without limitation, Section 1.C. of the Criteria Manual entitled "Inspection Fees;" it never being the intent of the City Council to exempt private developments from paying the inspection fee(s) where the effective preliminary plat was approved prior to October 1, 2005. The fees established by this ordinance and Ordinance No. 99-299 and Ordinance No. 2000-300 are applicable to all developments within the jurisdiction of the City, regardless of the date on which a preliminary plat was approved. SECTION 8. All fees established by this ordinance shall take effect, from and after October 1, 2005. A copy of these fees shall be maintained in the Office of the City Secretary, and shall be open for public inspection. 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: 8:IOur DocumentslOrdinanceslOSIEngineering Fees Ordinance-200S.doc 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 2005 9:00 A. M. DRAFT 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, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 6) Consider recommending approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2005-06. Howard Martin, ACM Utilities, reported to the Board that staff is requesting approval of Utility Rate Ordinances that reflect changes in support of the FY 2005-06 Budget. Martin explained that the Chapter 24 Code of Ordinance was not included in the backup material. Martin wanted to know how the Board wanted to proceed, that is, whether Board Members wanted staff to place the Chapter 24 Rate Ordinance on the next agenda or pull the Solid Waste Rate Ordinance and vote on both items at the same time. It was determined that the Chapter 24 Code of Ordinance would be discussed at the next meeting. Gallivan commented that the increase in the cart service seemed excessive. Martin responded that it has been determined that $4.6M is needed for solid waste operations. The rates were based on several assumptions and will be fined tuned when the customer base has been defined. Gallivan also reminded staff to be consistent when referring to cart sizes. In some instances carts are referenced in gallons and in some instances by size small, medium or large. Newell expressed several concerns as it relates to transitioning to cart service: Page 1 of 3 Exhibit 7 1 2 Lack of Public Education on Cart Service 3 ADA Requirements, as it relates to making cart pickup service available to all 4 citizens 5 Development Code Requirements as it relates to cart pickup in older communities 6 Trash and Recycling scheduled for the same day and the difficulty of 7 maneuvering two carts 8 Potential traffic hazards along some heavily traveled but narrow streets. 9 10 Kemler responded that when and if the Council approves the transition to cart service, an intense 11 Public Education promotion will begin that will address her concerns. Kemler continued to say 12 the Solid Waste staff has been working with the Public Information Staff on educational 13 material. The FY 2005-2006 Budget is scheduled for approval September 20, 14 2005;implementation of cart service is scheduled to begin October 2005. 15 16 Bland asked if the bag distribution will be discontinued. Martin responded that clear bags will 17 continue to be distributed for yard waste. 18 19 Newell called for a motion to approve the Solid Waste Rate Ordinance. 20 21 Bland moved to approve the Solid Waste Rate Ordinance contingent upon the passage of 22 the Chapter 24 Rate Changes that are scheduled to be presented at the next PUB meeting 23 with a second from Cheek. The motion was approved by a vote of 5 to O. 24 25 Newell called for a motion to approve the Electric Rate Ordinance 26 27 Baines expressed concern regarding the impact the rate increases will have on individuals with 28 low and/or fixed incomes. The Board recalled its stated preference for some sort oflifeline rate. 29 30 Gallivan moved to approve the Electric Rate Ordinance with a second from Bland. The 31 motion was approved by a vote of 5 to O. 32 33 Newell called for a motion to approve the Water Ordinance. 34 35 Bland moved to approved the Water Rate Ordinance with a second from Cheek. The 36 motion was approved by a vote of 5 to O. 37 38 Newell called for a motion to approve the Wastewater Ordinance. 39 40 Cheek recommended that the rate for asphalt milling be increased from $8.00/cy to $lO.OO/cy 41 which is more reflective of the market rate. 42 43 Cheek moved to approve the Wastewater Ordinance contingent upon increasing the 44 asphalt milling price to $10.00/cy with a second from Bland. The motion was approved by 45 a vote of 5 to O. 46 Newell called for a motion to approve the Miscellaneous Rate Ordinance. Page 2 of 3 1 2 Cheek asked staff to request clarification from legal regarding use of the word "contractor" on 3 page 9, under the heading Interest Earned on Contract Retainage, is the appropriate usage. It 4 was discussed that "customer" may be the appropriate reference. S 6 Bland moved to approved the Miscellaneous Rate Ordinance with a second from Gallivan, 7 with clarification about the usage of "contractor." The motion was approved by a vote of 5 8 to O. Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Utilities Administration ACM: Howard Martin, Utilities 349-8232 .. SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending and wholly substituting and superseding the provisions of chapter 24 of the City of Denton Code of Ordinances as attached hereto, regarding Solid Waste Service; providing for a repealer; providing for a severability clause; and providing an effective date. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The City of Denton solid waste code, Chapter 24 of the City of Denton Code of Ordinances, was originally codified in 1966, with the most recent update occurring in 2000. Over the past several years solid waste operations and services have changed. In several cases, code revisions were not made to support the operations and services changes. The proposed code changes will provide a code reflective of current services. Recommended Chapter 24 Solid Waste code changes include: Definitional Changes - This included some minor definition changes to reflect the current services provided, and the addition of the state's definition of municipal solid waste. Text Updates - This included replacing outdated text with current terminology. Examples of outdated text included replacing, 'garbage, trash, and rubbish', 'sanitation division', 'head of sanitation division' and 'plus ten percent' with current terminology. Text Deletions - Deleted Sections 24-6, c,d,e,f. These sections do not reflect current operational practices. Deleted Section 24-13; this section is provided for in the solid waste rate ordinance. Clarifications - Examples of clarifications include the updating of the text for mobility and visually impaired customers and the addition of Article IV, Recycling and Processing Services. Additions - Two new sections are recommended to support current operational practices. They are; Sec. 24-43. Residential collection service. Sec. 24-44. Residential containerized collection service. Main points of these sections are: . Providing residential set out and retrieval times . Cart locations and service Exhibit I provides the City Council with a draft red-lined (representing new text), and strike out (representing deleted text) version of the complete Chapter 24, Solid Waste revisions. Exhibit II provides a complete revised and more easily readable Chapter 24, without the red line or strike out text included. OPTIONS The City Council mayor may not recommend the proposed revisions and additions to the City of Denton Code of Ordinances, Chapter 24, Solid Waste. RECOMMENDA TION Staff recommends adoption of the updated City of Denton Code of Ordinances, Chapter 24, Solid Waste. PRIOR ACTIONIREVIEW (Council. Boards. Commissions) The Public Utilities Board approved the proposed updates to the City of Denton Code of Ordinances, Chapter 24, Solid Waste as provided during their meeting of September 12, 2005. FISCAL INFORMATION The costs to revise and provide additions to the City of Denton Code of Ordinances, Chapter 24, Solid Waste will be funded from the Solid Waste Department's fiscal year 2006 budget. EXHIBITS 1. Draft Revised Chapter 24, Solid Waste - Red lined and strike out text version. 2. Proposed Chapter 24, Solid Waste. 3. Ordinance 4. PUB Minutes Respectfully, a-(-l~ A. Vance Kemler Director of Solid Waste Chapter 24 SOLID WASTE ARTICLE I. IN GENERAL Sec. 24-1. Purpose. The accumulation of garbage, trash and rubbish on the premises of private residences, businesses, public and private institutions, vacant lots, and in the streets, and alleys and on other property within efthe city, constitute a public menace and nuisance and greatly increases the danger of the spread of infectious, contagious and epidemic diseases, and the regulations of this chapter are adopted for the purpose of preserving and protecting the public health, safety and general welfare by requiring property owners, tenants, occupants and lessees to secure and maintain containers and receptacles of sufficient size and material for the deposit of garbage, trash, and rubbish, and recyclable materials for collection and removal at regular intervals and to maintain their premises free of accumulations thereof. (Code 1966, 9 12-1) Sec. 24-2. Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Bulky items means any household item that will not fit inside a solid waste container when the lid on the solid waste container is closed. Only items consistent with residential use, such as household furniture and appliances shall be considered bulky items. Commercial means any structure or building other than residential, including business structures, hotels, motels, roominghouses or boardinghouses and structures containing more than four (4) or more dwelling units. Commercial garbage consists of all waste normally generated by each indiyidual establishment, except plant clippings, leayes, tree trimmings, ashes, demolition and remodeling debris and other material that cannot be broken do'.vn to fit in regular garbage containers. Commercial tree trimmer means a person who or firm that engages in and solicits the trimming, and/or cutting of trees as a regular part of the business. Hazardous waste means any commercial or residential garbage, trash, rubbish or other solid waste identified or listed as a hazardous waste by the administrator of the U. S. Environmental Protection Agency (EPA) pursuant to the federal Solid Waste Disposal Act 42 U.S.C. 6901 et seq., as amended. Page I of 13 EXHIBIT 1 Infectious waste means commercial or residential garbage, trash, rubbish, or other waste containing pathogens or biologically active material which because of its type, concentration, and quantity is capable of transmitting disease to persons exposed to the waste, including human and animal tissue, bandages and other material used in health care which become contaminated by pathogenic materials. Municipal Solid Waste (MSW) is solid waste resulting from or incidental to residential, municipal, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, street cleanings, construction and demolition materials, dead animals, and all other solid waste other than special wastes. Residential means a structure, house or building occupied as a dwelling only, and which contains no more than three (3) four (1) dwelling units. Residential garbage consists of all normal household waste, except plant clippings, leaves, tree trimmings, ashes, metal scraps other than cans, large accumulations of boxes, demolition and remodeling debris and other material that cannot be broken down to fit in regular garbage containers. Rubbish trash consists of all '.vaste and refuse material that is not either residential garbage or commercial garbage. Special waste means any commercial or residential garbage, trash, rubbish, hazardous waste, infectious waste, or other solid waste that because of its quantity, concentration, physical or chemical characteristics or biological properties is not collectable by the city's solid waste department. sanitation division. Unusual accumulations, for residential service for each regular collection, means more than one cubic yard eight (8), forty gallon plastic bags of garbage, trash, and other municipal solid waste permitted under this chapter, and/or limbs and cuttings yard waste that exceeds a pile three (3) feet in height, three (3) feet in width and cut to a maximum of four-foot lengths, and heavy, bulky objects and other accumulations unusual for the average household. Unusual accumulations for commercial service means any accumulation of refuse outside of the container. permitted under this chapter that is not ordinarily encountered in the operation of that type of business or an accumulation substantially greater than ordinary for that commercial establishment. (Code 1966, 9 12-2; Ord. No. 91-066, 9 I, 4-30-91; Ord. No. 98-299, 9 1,9-15-98) Cross reference-Definitions and rules of construction generally, 9 1-2. Sec. 24-3. City to provide solid waste services. (a) The city's solid waste department sanitation division shall be the exclusive provider of municipal solid waste collection residential and commercial garbage, rubbish, and refuse collection and disposal services for all premises within the city and it shall be Page 2 of 13 unlawful for any other person or entity to provide municipal solid waste collection residential or commercial garbage, rubbish, or refuse collection or disposal services to any person or entity for compensation within the city, or to make use of the public streets for that purpose, except as provided in this chapter. (Code 1966, 9 12-4; Ord. No. 91-066, 9 III, 4-30-91) Sec. 24-4. Charges for use of city landfill. The charges to be paid by persons for the use of the city's sanitary landfill site shall be in an amount established and as from time-to-time amended by ordinance as adopted by the city council, the ordinances and amendments thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (Code 1966, 9 12-5) Sec. 24-5. Disposal of garbage, trash or rubbish only in authorized locations. (a) It shall be unlawful for any person to dispose of garbage, trash or rubbish in any place in the city, other than as provided in this chapter or authorized by the city. No person shall place any solid waste, bulky items or any other material in, on or next to the solid waste container of another, unless authorized to do so by the person or persons who pay the charge for the solid waste collection service. (b) Any waste, garbage or other solid or liquid matter, residential, industrial or commercial, that possesses characteristics deemed by the state '.'later quality board Texas Commission of Environmental Quality (TCEQ), or the Environmental Protection Agency, or the State Department of Health, or any other federal, state or local agency having jurisdiction to be unsuitable or detrimental to the environment or human health when disposed of in the type of sanitary landfill operated by the city is hereby prohibited. Such material or matter shall be disposed of in the manner prescribed by the agency having jurisdiction and at the expense of the party or parties generating such material or matter. In no case shall such material or matter be placed for collection by the city nor shall it be delivered to or disposed of at the city's sanitary landfill. (Code 1966, 9 12-6; Ord. No. 98-299, 9 II, 9-15-98; Ord. No. 00-042, 9 1,2-1-00) State law references: Water quality standards, v.T.C.A., Water Code 926.124. Sec. 24-6. Receptacles for municipal solid waste. trash and rubbish. (a) Every owner, manager, agent, occupant, tenant, or lessee of any building, house, or structure within the corporate limits of the city shall provide and maintain suitable containers or receptacles of sufficient size and number to hold the municipal solid waste garbage, trash and rubbish which accumulates on the premises. (b) It shall be unlawful to place solid waste in, on or near a solid waste container in a manner that does not allow the lid of the solid waste container to completely close with all the solid waste completely within the container. Page 3 of 13 It shall be a defense to prosecution under this section if the solid waste placed next to the container is a bulky item as defined in section 24-2, and if the bulky item is placed next to the container less than forty-eight hours before the collection. first Thursday of each meHtfl. The defense does not apply if the person placing the bulky item in, on or near the solid waste container was not authorized to use the solid waste container. (c) It shall be unlawful for any person who pays the charge for solid waste container service to allow bulky items to accumulate around the person's solid waste container for more than forty eight (18) hours. (d) The first time subsection (a), (b), or (c) is violated by an individual or a business, the city may send out a written warning notifying the person who pays the solid waste charge that if the violations are repeated then the level of service may be automatically increased at the cost of such person. If the individual or business yiolates subsection (a), (b) or (c) a second time within six (6) months of the first yiolation, the city may send out certified mail notifying the person who pays the solid waste charge that if a yiolation occurs a third time, then the leyel of service will be automatically increased. If the indiyidual or business yiolates subsection (a), (b) or (c) a third time within six (6) months of the first yiolation and if two (2) warnings were sent to the person who pays the solid '.vaste charge, the level of service may be automatically increased. The '.vritten '.varnings and increased level of service are remedies in addition to any criminal prosecutions '.vhich may be brought under this section. (e) Except as otherwise provided in this chapter, plastic bags designed for garbage, trash and rubbish disposal that meet standard city specifications and having a capacity of not more than forty (10) gallons shall be used and placed on the curb or alley and suitably protected from animals and vermin. .^JI bags shall be securely tied or otherw-ise have all openings securely closed. Paper bags designed for garbage disposal and possessing characteristics approved by the director of solid 'Haste as being equal to the plastic bags described in this subsection or otherwise specified by the city may be permitted when placed on the curbline or alley and properly protected. Other containers or receptacles may be used where otherwise permitted under this chapter. (f) The city shall furnish one hundred four (101) bags each year per individual family unit and may make ayailable for sale additional bags to citizens of the city at locations designated by the city. (c) The contents of municipal solid waste trash or rubbish receptacles shall be secured so that neither the wind nor animals can scatter trash or rubbish over the premises or over the streets or alleys or other property within efthe city. (Code 1966, 99 12-8, 12-9(b), (c), 12-11(b); Ord. No. 98-299, 9 111,9-15-98; Ord. No. 00-042, 9 2, 2-1-00) Sec. 24-7. Weight limitations of containers. Page 4 of 13 The total weight of any garbage bag and contents and of any trash and rubbish receptacle and contents shall be fifty (50) pounds or less. (Code 1966, 9 12-10) Sec. 24-8. Removal of unauthorized containers. All solid waste and recycling storage garbage and refuse containers, drums, and barrels, not meeting the requirements of the this chapter shall be removed and disposed of by the city and the city shall not be liable for the removal and disposal of the same. (Code 1966, 9 12-12) Sec. 24-9. Prohibited materials and regulations. (a) The Director of Solid Waste head of the city's sanitation division shall keep a list of special waste that is not acceptable for collection and disposal by the Solid Waste Department sanitation division. The head of the sanitation division Director of Solid Waste may also make reasonable rules regarding the collection and disposal by the Solid Waste Department city's sanitation division of any municipal solid waste garbage, rubbish, trash, or other solid waste that requires special preparation or handling to meet the requirements of any state or federal law or regulation or which are otherwise necessary to safely and properly collect, transport, and provide for disposal. The list of special waste and the rules shall be written and kept on file by the Director of Solid Waste head of the sanitation division and be available for public inspection during regular business hours. (b) No person shall deposit in any container serviced by the Solid Waste Department city sanitation division any special waste. The Solid Waste Department city sanitation diyision may refuse to collect, transport or dispose of special or hazardous waste or any other garbage, rubbish, trash, or other solid waste that does not comply with this chapter or the regulations made by the Director of Solid Waste head of the sanitation diyision. (c) Each property owner shall be responsible for arranging collections with an authorized private hauler for the collection, removal, and disposal of any special waste or other garbage, trash, rubbish, or other solid waste which the city's Solid Waste Department sanitation diyision will not collect. (Code 1966, 9 12-14(a)--(d); Ord. No. 91-066, 9 IV, 4-30-91) Sec. 24-10. Municipal Solid Waste Carbage, trash and rubbish to be drained. All municipal solid waste garbage and all trash and rubbish mixed with water or other liquids shall be drained before being placed in the receptacle. (Code 1966, 9 12-15) Sec. 24-11. Preparation of yard waste, tree limbs and cuttings. Page 5 of 13 (a) Tree limbs, shrubs and hedge cuttings shall not exceed four (4) feet in length and shall be stacked neatly with one (1) cut end toward the street at the curb line. No unit or piece shall weigh more than fifty (50) pounds. Yard waste consisting of small pieces, small cuttings and small loose material shall be placed in approved plastic bags. (b) The director of solid waste community services shall provide for regular collections of yard waste trash and rubbish which has been prepared in accordance with this section. If unusual accumulations are present an4-i.f more than normal work is necessary in making such collection, a reasonable charge shall be made for such service in addition to the regular monthly service charge. (c) Brush, limbs, leaves and cuttings from trees and shrubs which have been trimmed or removed by a commercial tree trimmer shall be disposed of at the expense of the owner or person controlling the same or upon payment of the actual cost of such removal plus an administrative and overhead charge. ten (10) percent of such cost to the city. (Code 1966, 99 12-16(b), (c), 12-17(c)) Cross references - Landscaping, screening and tree preservation generally, Ch. 31. Sec. 24-12. Heavy or unusual accumulations. (a) Construction and demolition materials and other accumulations as a result of construction, remodeling, repairing or destruction shall be disposed of at the expense of the owner. (b) Household furnishings, goods and appliances, including but not limited to stoves, refrigerators, washing or drying machines, het water heaters, sofas, chairs, tables, mattresses and box springs, shall be disposed of at the expense of the owner or person controlling same or, upon request and payment of a fee to recover the cost of providing these additional services, including administrative and overhead costs. established by the city council and on file in the office of the city secretary, shall be removed by the city. (Code 1966, 9 12-17(e), (f)) See. 24 13. Fees for eleaning area surrounding solid waste eontainers. (a) If bulky items are left next to, in, on, or near a solid waste container in violation of section 21 6(b) or 21 6( c), then a forty five dollar ($15.00) fee for the removal of the first bulky item shall be charged to the person '.vho pays the fee for the solid '.vaste container. For each additional bulky item removed, a ten dollar ($10.00) fee per item shall be assessed unless the bulky item is an appliance containing chlorinated fluorocarbons (hereinafter referred to as dc's) or polychlorinated biphenals (hereinafter referred to as pcb's). If the bulky item is an appliance containing dc's or pcb's, the fee shall be t'.venty dollars ($20.00) per appliance. (b) If solid waste, other than bulky items, is left in, on, or near a solid waste container in violation of section 21 6(a) or 21 6(b), then a sixty five dollar ($65.00) fee shall be charged to the person who pays the fee for the solid waste container for the removal of up Page 6 of 13 to one (1) cubic yard of solid '.vaste. '^1n additional fee of thirty dollars ($30.00) for every additional cubic yard of solid waste up to eight (8) cubic yards shall be assessed unless the solid '.vaste exceeds eight (8) cubic yards. ( c) If more than eight (8) cubic yards of solid waste are left in, on, or near a solid waste container in violation of section 21 6(a) or 21 6(b) the solid waste department shall provide written notice to the person who pays the fee for the solid waste container requiring the person to lease appropriate equipment as specified by the solid waste department and provide for the removal of the solid waste. (d) It is unlawful for a person receiving notice to remove solid waste under section 21 13 ( c) to fail to have all the solid 'Haste removed '.vithin forty eight hours (18) of the notice. (e) Up to eight (8) bulky items per month will be picked up without any charge if the bulky items are left by the solid waste container less than forty eight (18) hours before the first Thursday of each month and if the bulky items are not appliances containing pcb's or cfc's. (Ord. No. 00-045, 93,2-1-99) Sec. 24-13. Theft of Service Prohibited. No person shall knowingly place any solid waste, bulky items, or any other material in, on, or next to the solid waste container of another person or entity in the city of Denton, Texas. Secs.24-14--24-40. Reserved. ARTICLE II. RESIDENTIAL COLLECTION SERVICE Sec. 24-41. Residential Solid Waste Services Required. (a) Any owner, occupant, tenant or lessee of any residential premises in the city shall have their municipal solid waste garbage, trash and rubbish regularly removed by the city. (b) The charges for such service shall be included on a regularly scheduled bill. the monthly bill of the applicant, as determined by the utility deposit or service application. (Code 1966, 9 12-18(a), (b)) Sec. 24-42. Charges for residential service. (a) As used in this section, the term "individual family unit" shall mean each side of a duplex, each living unit per subdivided lot, each apartment in an apartment house, up to Page 7 of 13 and including three (3) four (1) units and any unit or living space in which a single family resides. (b) The charge for collecting municipal solid waste garbage, trash and rubbish from each individual family unit shall be in an amount established and as from time-to-time amended by ordinance as adopted by the city council; the ordinance and amendments thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (c) Multiple-dwelling units having either water or electricity billed through a single meter will be billed a single solid waste charge along with the single water or electric charge, regardless of the occupancy of such multiple-dwelling unit. (d) Multiple-dwelling units classified as fraternities, sororities, boardinghouses and dormitories shall be charged as a commercial or institutional service. Any multiple- dwelling unit which requires more than the minimum service described in this chapter is subject to having the charges increased by the director of solid waste community services based upon the additional required service. (e) Mobility or visually impaired customers may receive special collection services. Containers may be placed in locations designated by the city. The resident receiving this special service must be mobility or visually impaired and no member of the household is physically able to place the containers at the curb. Such special services shall require approval by the Director of Solid Waste or designee. The monthly rate for these special collection services will be the same rate as is charged those customers with no impairments. (f) All residential dwelling units shall containerize their waste for collection. use bags as specified under section 21 6(b) and shall place such bags on the curb or alley line as specified by the city. ~ Containers (bags) may be placed in other locations designated by the city if no member of the household is physically able to place such containers on the curbline. Such exceptions shall be at the discretion of the city. (Code 1966, 9 12-19) Sec. 24-43. Residential collection service. (a) All single family residents within the city shall place their residential refuse and recyclables at the curb as specified by the Director of Solid Waste or designee. (b) Residential refuse and recyclables shall be placed at the curb no earlier than 6:00 p.m. on the day prior to the scheduled collection day. To ensure collection, residential refuse and recyclables should be placed at the curb by 7:00 a.m. on the day of collection. (c) Customers whose refuse or recyclables were not collected because; they were not placed at the proper location, they contained unacceptable materials, or they were not Page 8 of 13 placed out for collection by the required time, shall not be collected until the next regularly scheduled collection service. (d) Containers, receptacles and any unaccepted waste or recyclables, shall be removed from the curb or other designated collection point by the customer no later than 8:00 a.m. on the day following the scheduled collection day. (e) All refuse and recyclable containers shall securely contain all contents, and shall be capable of being handled without spillage. Refuse and recyclables determined by the city to not be properly contained shall not be collected. Sec. 24-44. Residential containerized collection service. (a) Carts shall be placed at or near the curb line, a minimum of four (4) feet from any mailbox, vehicle, obstacle, or other container. The cart shall be placed in the street with its wheels against the curb. The Director of Solid Waste or designee may make reasonable exceptions to the foregoing location requirements, as needed, upon request of the customer, to meet unique circumstances. (b) Only authorized refuse and recycling container(s) (carts) provided by the city will be serviced. No other containers, boxes, or bags placed at the collection site will be collected, unless special refuse collection services have been requested. Secs. 24-45--24-65. Reserved. ARTICLE III. COMMERCIAL COLLECTION SERVICE Sec. 24-66. Commercial Solid Waste Services Required. Owner to arrange for eolleetion. Every owner, occupant, tenant or lessee of any business, commercial, industrial, or institutional property, or other property not entitled to receive residential solid waste garbage collection services shall arrange, by contract with the city, for commercial solid waste garbage collection and disposal services from the city's solid waste department sanitation diyision, except as otherwise specified in this chapter. (Code 1966, 9 12-21; Ord. No. 91-066, 9 V, 4-30-91) Sec. 24-67. Charges for commercial, industrial, or institutional service. (a) The charge for collection and removal of municipal solid waste garbage, trash and rubbish from premises used for business, industrial, or institutional purposes shall be based upon the size, type and number of containers in use at such establishments and the frequency with which such containers are scheduled to be serviced by city collection personnel. Such charge shall be in an amount established and as from time to time amended by ordinance as adopted by the city council; the ordinance and amendments Page 9 of 13 thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (b) The service charge for other commercial waste disposal and collection services not otherwise provided for pursuant to this section may be provided upon approval of the Director superintendent of Solid Waste at a cost not to exceed the actual cost plus administrative and overhead costs. ten (10) percent. (Code 1966, 9 12-20; Ord. No. 89-032, 9 I, 2-21-89) Sec. 24-68. Containers furnished by city for commercial and industrial facilities. concerns. (a) The Director of Solid Waste community services may locate and place metal refuse containers for use by commercial, and industrial, and institutional facilities concerns in accordance with the waste storage needs of the individual facility. concern. All facilities concerns for which containers are so provided by the city shall place all refuse and waste materials in such containers and shall not place waste refuse or garbage in any containers except those designated by the director of solid waste. community services for their use. It shall be unlawful for any person using such containers to leave the lid open after placing refuse material therein. (b ) All boxes and cartons must be broken down and placed in proper containers. (c) The maximum weight of the container and contents shall not exceed twelve hundred (1,200) pounds. The net contents shall not exceed six hundred (600) pounds. (d) Reserved. (b) Where more than one (1) commercial establishment uses the same container, the charges shall be prorated according to use, but in no case shall be less than an amount established by the city council and on file in the office of the city secretary. (f) The charges for containers shall apply to all types of approved use except apartment houses and residences served by containers. Such apartment houses and residences shall be charged the regular rate listed in this chapter. (Code 1966, 9 12-22; Ord. No. 91-066, 9 VI, 4-30-91) Sec. 24-69. Annual permit required for special waste and recyclables haulers. (a) No person shall collect or remove for compensation from any property within the city any special waste or recyclables without first obtaining a special waste hauler's permit from the city. division of sanitation. Page 10 of 13 (b) The person applying for a special waste hauler's permit shall make application to the city's sanitation division on efforms provided for that purpose, and pay the required fee. The application shall require the following information: (1) The name and business address of the applicant. (2) The name of the owner of the property and the address where the special waste and recyclables will be collected. (3) A description of the special waste and recyclables to be collected. (4) The location where the special waste and recyclables will be disposed, including proof, when required by the Director of Solid Waste head of the sanitation division, that the applicant is legally authorized to dispose ~ at the specified location. (5) A description and the license number of the motor vehicles to be used in collecting and transporting the special waste and recyclables within the city. (6) Any other information which is reasonably necessary to administer this section. ( c) The Director of Solid Waste head of the sanitation division shall issue the special waste and recyclables hauler's permit to the applicant if: (1) Proper application has been made and the fee paid. (2) The applicant will only be collecting special waste or recyclables as defined in this chapter. (3) The applicant is authorized to use the specified disposal site and the manner and place of disposal does not appear to violate any state or federal law or regulation or city ordinance. (d) The special waste and recyclables hauler's permit shall be valid for one year. Hem the date of issuance. (Code 1966, 9 12-23; Ord. No. 90-003, 9 I, 1-2-90; Ord. No. 91-066, 9 VII, 4-30-91) ARTICLE IV. RECYCLING AND PROCESSING SERVICES. Sec. 24-90. Recyclable Materials. refuse. (a) Nothing in this chapter shall prohibit a person from collecting, gathering, or transporting recyclable materials refuse collected from property within the city. (b) Any person who transports recyclable materials refuse collected from any property inside the city to a point outside the city, more than three times per year shall register Page 11 of 13 with the city's sanitation division, on forms provided for that purpose. There shall be no fee for registration. (c) As used in this section, "recyclable materials refuse" means glass, tin, aluminum, paper, newspaper or other discarded materials, which are not special waste and have been separated from other municipal solid waste garbage, trash, and rubbish at the point of collection for delivery to another location for processing for reuse. (Ord. No. 91-066, 9 VIII, 4-30-91) Editor's note: Ord. No. 91-066, 9 VIII, adopted April 30, 1991, amended former 9 24-70, relative to license terms, in its entirety to read as herein set out. The provisions of former 924-70 derived from Code 1966 9 12-24 and Ord. No. 90-003, 9 II, adopted Jan. 2,1990. Sec. 24-91. Disposing of recyclable materials. It shall be unlawful for a person to place any non-recyclable solid waste in any recycling receptacle or to leave any non-recyclable solid waste on a recycling site in the city of Denton, Texas. (Ord. No. 98-299, 9 IV, 9-15-98) ARTICLE V. POSSESSION OF OPEN GLASS CONTAINERS IN FRY STREET DISTRICT Sec. 24-100. Definitions. Fry Street District: Refers to the area as described in Zoning Ordinance No. 2000-045 as the Fry Street district. The Fry Street district is generally bounded by Welch Street to the east, Oak Street to the North, Ave B to the northwest, Ave A to the southwest, Mulberry Street to the southeast, and Hickory Street to the southwest, which is depicted in Exhibit A attached hereto and made a part hereof by reference. Glass container: Means any glass bottle or receptacle, closed or capable of being closed. Ord. No. 00-045, 9 1,2-1-00) Sec. 24-101. Prohibition of open glass containers. (a) Prohibitions. No person shall possess within the Fry Street district upon or immediately adjacent to any right-of-way, street, sidewalk, pedestrian way, or parking area, any glass container which is open or has been previously opened except for use on the premises where the glass containers are acquired. (b) Exemptions. Notwithstanding any other provision of this section, nothing in this section shall prohibit the possession of the following glass containers in the Fry Street District: Page 12 of 13 (1) Baby bottles containing products for consumption by babies; (2) Glass drug containers containing prescription drugs; (3) Glass containers that are being transported in a trash bag directly to a trash or recycling container for disposal or recycling purposes; (4) Glass lined vacuum picnic containers or thermos bottles, and (5) Any container as permitted by Texas Alcoholic Beverage Code Ann. 28.1 O(b). (Ord. No. 00-045, 9 1,2-1-00) Sec. 24-102. Discretion of police officer. Whenever any police officer shall, in the exercise of reasonable judgement, decide that the presence of any person in any public place is causing or is likely to cause any of the conditions enumerated in subsection 24-1 0 1-+.+(a), he may, ifhe deems it necessary for the preservation of public peace and safety, order that person to leave that place and surrender the open glass container. Any person who shall refuse to leave or surrender an open glass container after being ordered to do so by a police officer shall be in violation of this section. (Ord. No. 00-045, 9 1,2-1-00) Page 13 of 13 Chapter 24 SOLID WASTE ARTICLE I. IN GENERAL Sec. 24-1. Purpose. The accumulation of garbage, trash and rubbish on the premises of private residences, businesses, public and private institutions, vacant lots, and in the streets, and alleys and on other property within the city, constitute a public menace and nuisance and greatly increases the danger of the spread of infectious, contagious and epidemic diseases, and the regulations of this chapter are adopted for the purpose of preserving and protecting the public health, safety and general welfare by requiring property owners, tenants, occupants and lessees to secure and maintain containers and receptacles of sufficient size and material for the deposit of garbage, trash, rubbish, and recyclable materials for collection and removal at regular intervals and to maintain their premises free of accumulations thereof. (Code 1966, 9 12-1) Sec. 24-2. Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Bulky items means any household item that will not fit inside a solid waste container when the lid on the solid waste container is closed. Only items consistent with residential use, such as household furniture and appliances shall be considered bulky items. Commercial means any structure or building other than residential, including business structures, hotels, motels, roominghouses or boardinghouses and structures containing four (4) or more dwelling units. Commercial tree trimmer means a person who or firm that engages in and solicits the trimming, and/or cutting of trees as a regular part of the business. Hazardous waste means any commercial or residential garbage, trash, rubbish or other solid waste identified or listed as a hazardous waste by the administrator of the U. S. Environmental Protection Agency (EPA) pursuant to the federal Solid Waste Disposal Act 42 U.S.C. 6901 et seq., as amended. Infectious waste means commercial or residential garbage, trash, rubbish, or other waste containing pathogens or biologically active material which because of its type, concentration, and quantity is capable of transmitting disease to persons exposed to the EXHIBIT 2 Page I af1I waste, including human and animal tissue, bandages and other material used in health care which become contaminated by pathogenic materials. Municipal Solid Waste (MSW) is solid waste resulting from or incidental to residential, municipal, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, street cleanings, construction and demolition materials, dead animals, and all other solid waste other than special wastes. Residential means a structure, house or building occupied as a dwelling only, and which contains no more than three (3) dwelling units. Residential garbage consists of all normal household waste, except plant clippings, leaves, tree trimmings, ashes, metal scraps other than cans, large accumulations of boxes, demolition and remodeling debris and other material that cannot be broken down to fit in regular garbage containers. Special waste means any commercial or residential garbage, trash, rubbish, hazardous waste, infectious waste, or other solid waste that because of its quantity, concentration, physical or chemical characteristics or biological properties is not collectable by the city's solid waste department. Unusual accumulations, for residential service for each regular collection, means more than one cubic yard of garbage, trash, and other municipal solid waste permitted under this chapter, and yard waste that exceeds a pile three (3) feet in height, three (3) feet in width and cut to a maximum of four-foot lengths, and heavy, bulky objects and other accumulations unusual for the average household. Unusual accumulations for commercial service means any accumulation of refuse outside of the container. (Code 1966, 9 12-2; Ord. No. 91-066, 9 I, 4-30-91; Ord. No. 98-299, 9 1,9-15-98) Cross reference-Definitions and rules of construction generally, 9 1-2. Sec. 24-3. City to provide solid waste services. (a) The city's solid waste department shall be the exclusive provider of municipal solid waste collection and disposal services for all premises within the city and it shall be unlawful for any other person or entity to provide municipal solid waste collection or disposal services to any person or entity for compensation within the city, or to make use of the public streets for that purpose, except as provided in this chapter. (Code 1966, 9 12-4; Ord. No. 91-066, 9 III, 4-30-91) Sec. 24-4. Charges for use of city landfill. The charges to be paid by persons for the use of the city's sanitary landfill site shall be in an amount established and as from time-to-time amended by ordinance as adopted by the Page 2 af1I city council, the ordinances and amendments thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (Code 1966, 9 12-5) Sec. 24-5. Disposal of garbage, trash or rubbish only in authorized locations. (a) It shall be unlawful for any person to dispose of garbage, trash or rubbish in any place in the city, other than as provided in this chapter or authorized by the city. No person shall place any solid waste, bulky items or any other material in, on or next to the solid waste container of another, unless authorized to do so by the person or persons who pay the charge for the solid waste collection service. (b) Any waste, garbage or other solid or liquid matter, residential, industrial or commercial, that possesses characteristics deemed by the Texas Commission of Environmental Quality (TCEQ), or the Environmental Protection Agency, or the State Department of Health, or any other federal, state or local agency having jurisdiction to be unsuitable or detrimental to the environment or human health when disposed of in the type of sanitary landfill operated by the city is hereby prohibited. Such material or matter shall be disposed of in the manner prescribed by the agency having jurisdiction and at the expense of the party or parties generating such material or matter. In no case shall such material or matter be placed for collection by the city nor shall it be delivered to or disposed of at the city's sanitary landfill. (Code 1966, 9 12-6; Ord. No. 98-299, 9 II, 9-15-98; Ord. No. 00-042, 9 1,2-1-00) State law references: Water quality standards, v.T.C.A., Water Code 926.124. Sec. 24-6. Receptacles for municipal solid waste. (a) Every owner, manager, agent, occupant, tenant, or lessee of any building, house, or structure within the corporate limits of the city shall provide and maintain suitable containers or receptacles of sufficient size and number to hold the municipal solid waste which accumulates on the premises. (b) It shall be unlawful to place solid waste in, on or near a solid waste container in a manner that does not allow the lid of the solid waste container to completely close with all the solid waste completely within the container. It shall be a defense to prosecution under this section if the solid waste placed next to the container is a bulky item as defined in section 24-2, and if the bulky item is placed next to the container less than forty-eight hours before the collection. The defense does not apply if the person placing the bulky item in, on or near the solid waste container was not authorized to use the solid waste container. (c) The contents of municipal solid waste receptacles shall be secured so that neither the wind nor animals can scatter trash or rubbish over the premises or over the streets or alleys or other property within the city. Page 3 of II (Code 1966, 99 12-8, 12-9(b), (c), 12-11(b); Ord. No. 98-299, 9 111,9-15-98; Ord. No. 00-042, 9 2, 2-1-00) Sec. 24-7. Weight limitations of containers. The total weight of any garbage bag and contents and of any trash and rubbish receptacle and contents shall be fifty (50) pounds or less. (Code 1966, 9 12-10) Sec. 24-8. Removal of unauthorized containers. All solid waste and recycling storage containers, not meeting the requirements of the this chapter shall be removed and disposed of by the city and the city shall not be liable for the removal and disposal of the same. (Code 1966, 9 12-12) Sec. 24-9. Prohibited materials and regulations. (a) The Director of Solid Waste shall keep a list of special waste that is not acceptable for collection and disposal by the Solid Waste Department. The Director of Solid Waste may also make reasonable rules regarding the collection and disposal by the Solid Waste Department of any municipal solid waste, or other solid waste that requires special preparation or handling to meet the requirements of any state or federal law or regulation or which are otherwise necessary to safely and properly collect, transport, and provide for disposal. The list of special waste and the rules shall be written and kept on file by the Director of Solid Waste and be available for public inspection during regular business hours. (b) No person shall deposit in any container servi ced by the Soli d Waste Department any special waste. The Solid Waste Department may refuse to collect, transport or dispose of special or hazardous waste or any other garbage, rubbish, trash, or other solid waste that does not comply with this chapter or the regulations made by the Director of Solid Waste. (c) Each property owner shall be responsible for arranging collections with an authorized private hauler for the collection, removal, and disposal of any special waste or other garbage, trash, rubbish, or other solid waste which the city's Solid Waste Department will not collect. (Code 1966, 9 12-14(a)--(d); Ord. No. 91-066, 9 IV, 4-30-91) Sec. 24-10. Municipal Solid Waste to be drained. All municipal solid waste mixed with water or other liquids shall be drained before being placed in the receptacle. (Code 1966, 9 12-15) Page 4 af1I Sec. 24-11. Preparation of yard waste, tree limbs and cuttings. (a) Tree limbs, shrubs and hedge cuttings shall not exceed four (4) feet in length and shall be stacked neatly with one (1) cut end toward the street at the curb line. No unit or piece shall weigh more than fifty (50) pounds. Yard waste consisting of small pieces, small cuttings and small loose material shall be placed in approved bags. (b) The Director of Solid Waste shall provide for regular collections of yard waste which has been prepared in accordance with this section. Ifunusual accumulations are present, a reasonable charge shall be made for such service in addition to the regular service charge. (c) Brush, limbs, leaves and cuttings from trees and shrubs which have been trimmed or removed by a commercial tree trimmer shall be disposed of at the expense of the owner or person controlling the same or upon payment of the actual cost of such removal plus an administrative and overhead charge (Code 1966, SS 12-16(b), (c), 12-17(c)) Cross references - Landscaping, screening and tree preservation generally, Ch. 31. Sec. 24-12. Heavy or unusual accumulations. (a) Construction and demolition materials and other accumulations as a result of construction, remodeling, repairing or destruction shall be disposed of at the expense of the owner. (b) Household furnishings, goods and appliances, including but not limited to stoves, refrigerators, washing or drying machines, water heaters, sofas, chairs, tables, mattresses and box springs, shall be disposed of at the expense of the owner or person controlling same or, upon request and payment of a fee to recover the cost of providing these additional services, including administrative and overhead costs. (Code 1966, S 12-17(e), (f)) Sec. 24-13. Theft of Service Prohibited. No person shall knowingly place any solid waste, bulky items, or any other material in, on, or next to the solid waste container of another person or entity in the city of Denton, Texas. Secs.24-14--24-40. Reserved. ARTICLE II. RESIDENTIAL COLLECTION SERVICE Sec. 24-41. Residential Solid Waste Services Required. Page 5 af1I (a) Any owner, occupant, tenant or lessee of any residential premises in the city shall have their municipal solid waste regularly removed by the city. (b) The charges for such service shall be included on a regularly scheduled bill. (Code 1966, 9 12-18(a), (b)) Sec. 24-42. Charges for residential service. (a) As used in this section, the term "individual family unit" shall mean each side of a duplex, each living unit per subdivided lot, each apartment in an apartment house, up to and including three (3) units and any unit or living space in which a single family resides. (b) The charge for collecting municipal solid waste from each individual family unit shall be in an amount established and as from time-to-time amended by ordinance as adopted by the city council; the ordinance and amendments thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (c) Multiple-dwelling units having either water or electricity billed through a single meter will be billed a single solid waste charge along with the single water or electric charge, regardless of the occupancy of such multiple-dwelling unit. (d) Multiple-dwelling units classified as fraternities, sororities, boardinghouses and dormitories shall be charged as a commercial or institutional service. Any multiple- dwelling unit which requires more than the minimum service described in this chapter is subj ect to having the charges increased by the Director of Solid Waste based upon the additional required service. (e) Mobility or visually impaired customers may receive special collection services. Containers may be placed in locations designated by the city. The resident receiving this special service must be mobility or visually impaired and no member of the household is physically able to place the containers at the curb. Such special services shall require approval by the Director of Solid Waste or designee. The monthly rate for these special collection services will be the same rate as is charged those customers with no impairments. (f) All residential dwelling units shall containerize their waste for collection. (Code 1966, 9 12-19) Sec. 24-43. Residential collection service. (a) All single family residents within the city shall place their residential refuse and recyclables at the curb as specified by the Director of Solid Waste or designee. Page 6 af1I (b) Residential refuse and recyclables shall be placed at the curb no earlier than 6:00 p.m. on the day prior to the scheduled collection day. To ensure collection, residential refuse and recyclables should be placed at the curb by 7:00 a.m. on the day of collection. (c) Customers whose refuse or recyclables were not collected because; they were not placed at the proper location, they contained unacceptable materials, or they were not placed out for collection by the required time, shall not be collected until the next regularly scheduled collection service. (d) Containers, receptacles and any unaccepted waste or recyclables, shall be removed from the curb or other designated collection point by the customer no later than 8:00 a.m. on the day following the scheduled collection day. (e) All refuse and recyclable containers shall securely contain all contents, and shall be capable of being handled without spillage. Refuse and recyclables determined by the city to not be properly contained shall not be collected. Sec. 24-44. Residential containerized collection service. (a) Carts shall be placed at or near the curb line, a minimum of four (4) feet from any mailbox, vehicle, obstacle, or other container. The cart shall be placed in the street with its wheels against the curb. The Director of Solid Waste or designee may make reasonable exceptions to the foregoing location requirements, as needed, upon request of the customer, to meet unique circumstances. (b) Only authorized refuse and recycling container(s) (carts) provided by the city will be serviced. No other containers, boxes, or bags placed at the collection site will be collected, unless special refuse collection services have been requested. Secs. 24-45--24-65. Reserved. ARTICLE III. COMMERCIAL COLLECTION SERVICE Sec. 24-66. Commercial Solid Waste Services Required. Every owner, occupant, tenant or lessee of any business, commercial, industrial, or institutional property, or other property not entitled to receive residential solid waste collection services shall arrange, by contract with the city, for commercial solid waste collection and disposal services from the city's solid waste department, except as otherwise specified in this chapter. (Code 1966, S 12-21; Ord. No. 91-066, S V, 4-30-91) Sec. 24-67. Charges for commercial, industrial, or institutional service. (a) The charge for collection and removal of municipal solid waste from premises used for business, industrial, or institutional purposes shall be based upon the size, type and Page 7 af1I number of containers in use at such establishments and the frequency with which such containers are scheduled to be serviced by city collection personnel. Such charge shall be in an amount established and as from time to time amended by ordinance as adopted by the city council; the ordinance and amendments thereto to be kept on file with the city secretary and to be available for public inspection during regular business hours. (b) The service charge for other commercial waste disposal and collection services not otherwise provided for pursuant to this section may be provided upon approval of the Director of Solid Waste at a cost not to exceed the actual cost plus administrative and overhead costs. (Code 1966, 9 12-20; Ord. No. 89-032, 9 I, 2-21-89) Sec. 24-68. Containers furnished by city for commercial and industrial facilities. (a) The Director of Solid Waste may locate and place containers for use by commercial, industrial, and institutional facilities in accordance with the waste storage needs of the individual facility. All facilities for which containers are so provided by the city shall place all refuse and waste materials in such containers and shall not place waste in any containers except those designated by the director of solid waste. It shall be unlawful for any person using such containers to leave the lid open after placing refuse material therein. (b) Where more than one (1) commercial establishment uses the same container, the charges shall be prorated according to use, but in no case shall be less than an amount established by the city council and on file in the office of the city secretary. (Code 1966, 9 12-22; Ord. No. 91-066, 9 VI, 4-30-91) Sec. 24-69. Annual permit required for special waste and recyclables haulers. (a) No person shall collect or remove for compensation from any property within the city any special waste or recyclables without first obtaining a special waste hauler's permit from the city. (b) The person applying for a special waste hauler's permit shall make application to the city on forms provided for that purpose, and pay the required fee. The application shall require the following information: (1) The name and business address of the applicant. (2) The name of the owner of the property and the address where the special waste and recyclables will be collected. (3) A description of the special waste and recyclables to be collected. Page 8 of II (4) The location where the special waste and recyclables will be disposed, including proof, when required by the Director of Solid Waste, that the applicant is legally authorized to dispose at the specified location. (5) A description and the license number of the motor vehicles to be used in collecting and transporting the special waste and recyclables within the city. (6) Any other information which is reasonably necessary to administer this section. ( c) The Director of Solid Waste shall issue the special waste and recyclables hauler's permit to the applicant if: (1) Proper application has been made and the fee paid. (2) The applicant will only be collecting special waste or recyclables as defined in this chapter. (3) The applicant is authorized to use the specified disposal site and the manner and place of disposal does not appear to violate any state or federal law or regulation or city ordinance. (d) The special waste and recyclables hauler's permit shall be valid for one year. (Code 1966, 9 12-23; Ord. No. 90-003, 9 I, 1-2-90; Ord. No. 91-066, 9 VII, 4-30-91) ARTICLE IV. RECYCLING AND PROCESSING SERVICES. Sec. 24-90. Recyclable Materials. (a) Nothing in this chapter shall prohibit a person from collecting, gathering, or transporting recyclable materials collected from property within the city. (b) Any person who transports recyclable materials collected from any property inside the city to a point outside the city, more than three times per year shall register with the city on forms provided for that purpose. (c) As used in this section, "recyclable materials" means glass, tin, aluminum, paper, newspaper or other discarded materials, which are not special waste and have been separated from other municipal solid waste at the point of collection for delivery to another location for processing for reuse. (Ord. No. 91-066, 9 VIII, 4-30-91) Editor's note: Ord. No. 91-066, 9 VIII, adopted April 30, 1991, amended former 9 24-70, relative to license terms, in its entirety to read as herein set out. The provisions of former 924-70 derived from Code 1966 9 12-24 and Ord. No. 90-003, 9 II, adopted Jan. 2,1990. Page 9 af1I Sec. 24-91. Disposing of recyclable materials. It shall be unlawful for a person to place any non-recyclable solid waste in any recycling receptacle or to leave any non-recyclable solid waste on a recycling site in the city of Denton, Texas. (Ord. No. 98-299, 9 IV, 9-15-98) ARTICLE V. POSSESSION OF OPEN GLASS CONTAINERS IN FRY STREET DISTRICT Sec. 24-100. Definitions. Fry Street District: Refers to the area as described in Zoning Ordinance No. 2000-045 as the Fry Street district. The Fry Street district is generally bounded by Welch Street to the east, Oak Street to the North, Ave B to the northwest, Ave A to the southwest, Mulberry Street to the southeast, and Hickory Street to the southwest, which is depicted in Exhibit A attached hereto and made a part hereof by reference. Glass container: Means any glass bottle or receptacle, closed or capable of being closed. Ord. No. 00-045, 9 1,2-1-00) Sec. 24-101. Prohibition of open glass containers. (a) Prohibitions. No person shall possess within the Fry Street district upon or immediately adjacent to any right-of-way, street, sidewalk, pedestrian way, or parking area, any glass container which is open or has been previously opened except for use on the premises where the glass containers are acquired. (b) Exemptions. Notwithstanding any other provision of this section, nothing in this section shall prohibit the possession of the following glass containers in the Fry Street District: (1) Baby bottles containing products for consumption by babies; (2) Glass drug containers containing prescription drugs; (3) Glass containers that are being transported in a trash bag directly to a trash or recycling container for disposal or recycling purposes; (4) Glass lined vacuum picnic containers or thermos bottles, and (5) Any container as permitted by Texas Alcoholic Beverage Code Ann. 28.1 O(b). (Ord. No. 00-045, 9 1,2-1-00) Sec. 24-102. Discretion of police officer. Page 10 af1I Whenever any police officer shall, in the exercise of reasonable judgement, decide that the presence of any person in any public place is causing or is likely to cause any of the conditions enumerated in subsection 24-101(a), he may, ifhe deems it necessary for the preservation of public peace and safety, order that person to leave that place and surrender the open glass container. Any person who shall refuse to leave or surrender an open glass container after being ordered to do so by a police officer shall be in violation of this section. (Ord. No. 00-045, S 1,2-1-00) Page 11 af1I ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING AND WHOLLY SUBSTITUTING AND SUPERSEDING THE PROVISIONS OF CHAPTER 24 OF THE CITY OF DENTON CODE OF ORDINANCES AS ATTACHED HERETO, REGARDING SOLID WASTE SERVICE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR EACH VIOLATION THEREOF; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR THE PUBLICATION OF THE CAPTION THEREOF AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has determined that it is necessary and appropriate to wholly amend, supersede and update the provisions of Chapter 24 of the Denton Code of Ordinances, and that the adoption of this ordinance is found by the City Council to be in the best interest of the citizens of the City of Denton, Texas; and WHEREAS, the City Council desires to substitute the provisions of the new Chapter 24, Denton Code of Ordinances, as attached hereto, and incorporated by reference herein; and it desires to supersede all of the provisions of the existing Chapter 24; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the provisions of the amended Chapter 24, Denton Code of Ordinances, entitled "Solid Waste" which are attached hereto as Exhibit "A", shall be in all things adopted by the City Council on this date; and the existing Chapter 24, Denton Code of Ordinances shall be hereby superseded. SECTION 2. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 1. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4 That this ordinance shall be effective fourteen (14) days after this ordinance is approved by the City Council, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its approval by the City Council. PASSED AND APPROVED this the day of ,2005. 1 EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWINM. SNYDER, CITY ATTORNEY By: S:IOur DocumentslOrdinanceslOSIChapter 24 Amended Ordinance-Solid Waste-200S.doc 2 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR SEPTEMBER 12, 2005 9:00 A. M. DRAFT 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, Sept 12, 2005 at 9:12 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Charldean Newell, Dick Smith John Baines arrived at approximately 11 :06 a.m. EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Phil Gallivan George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 11) Receive a presentation, hold a discussion and provide a recommendation to update the City of Denton Code of Ordinances, Chapter 24, Solid Waste. Vance Kemler, Solid Waste Director, presented this item. Kemler reported that the Solid Waste Department has proposed changes to the Code of Ordinance that will support current operations as well as the new service associated with the citywide cart service program proposed for FY 2006. Newell expressed concern regarding the education plan and the frequently asked questions. She noted that: 1. The answers were too long in regard to the frequently asked questions. 2. Some editing for grammar was needed and there needed to be a clear separation of concepts between marketing and education. 4. The educational process should not just rely on information being posted on the web. Staff should utilize the University news papers and KNTU News to communicate to a wider audience. 5. Documents should make sure that when using the term residential service that it is clearly defined. Residential service does not apply or affect those living in apartments. Page 1 of 2 EXHIBIT 4 1 Newell also volunteered her services to edit the frequently asked questions document. 2 3 Cheek stated that a hotline number should be established to answer questions associated with the 4 implementation of the new cart service. S 6 Newell, notifying the lack of orthodox parliamentary procedure in doing say, asked the Board's 7 indulgence so that she could put the motion on this issue since she had been the one to who had 8 raised so many issues. 9 10 Newell moved to approve with a second by Board Member John Baines. The motion was 11 approved by a vote of 5-0. 12 Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for Harris Public Utility Billing System and associated software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3373- Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $56,755). FILE INFORMATION The City of Denton uses the Harris Public Utility Billing System software for maintaining utility customer accounts, producing utility bills, and processing utility revenues. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. By keeping current maintenance, the City will be able to upgrade to the newest version of the Harris NorthStar 6.0 software over the course of the next year. Harris Computer Systems, Inc. is the sole source vendor for maintenance for the Harris Public Utility Billing System and associated software modules. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Harris Computer Systems, Inc. in the amount of $56,755. PRINCIPAL PLACE OF BUSINESS Harris Computer Systems, Inc. Ottawa, Ontario, Canada ESTIMA TED SCHEDULE OF PROJECT Annual maintenance is being paid for November 1, 2005 through October 31,2006. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2005-06 Technology Services Operating Account 830400.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter Attachment 3: Software Agreement Attachment 4: Cost Analysis l-AIS-File 3373 Attachment 1 Denton, TX Maintenance Proaram Invoice in Harris Current Product Next Invoice Invoice Nov 1/05 - Oct 31/06 Nov 1/04 - Oct 31/05 Software PUBS, CARe & HHI 28,755.00 27,000.00 Report Writer - PUBS 1,865.00 1,750.00 eCARe 12,860.00 12,075.00 Call Centre 1,650.00 1,550.00 Test Server 2,075.00 1,950.00 47,205.00 44,325.00 Cog nos Nov 1/05 - Oct 31/06 Nov 1/04 - Oct 31/05 1 admin @ $250 250.00 250.00 Nov 1/05 - Oct 31/06 Nov 1/04 - Oct 31/05 GUI (155 @ $60) 9,300.00 9,300.00 Attachment 2 Harris Computer, l'ne. Patricia Boisvert 1 Antares DrivejSune 400 ottawa, Ontari:o. Cana.QCi K2E 8C4 Dear patricia: Your firm has been selected asa vendor providing annual maintenance and continued vendor support of the Hams pubHc Utility Bilting System and associatedsafhvare t modulles. You have indIcmed to us that you are lheonly exis'.' vendorofthislthe~e commodities. Due to statutory requirements, unless: you are l "single or 5:01e ,solirce~' of this!these commodities we must bId thefr procurementciomp:enUvely. SinglesDurce, in th~s. case, means that you srethe only company that can . Iy us With this commodB:y. We are required tocormrm tnisstatus with yeu" respond a~ necessary to thefoUowing questions and return this sneet'to llS via U,S. Mail or fax.. Cal! if you have any questions, 1, Are Y9Y. th.e sole 'Or Sfn9Je.. source vendor for thecommoditiel> named above? -LYes __ No 2. 15 there any other vendor th.atoffers this service? _Yes ~. No [f you are not the singJe sourCEi vendor of this servfce please list the :other vendors. we need to contact for bids: ' if you answered questions above as a single source vendor please stgnbelow ta'oertIfy filat you are the slnglesQurce of this material and return to: . Tom Shaw, PurchaSIng Agent 9011 B Texas: Street Denton, Texas 76209 Or Fax ta (940) 349-7302 I certify that weare the sole source 'Of the above listed commo\;ifty or commodities, Signed: ()(1<~~ Title: CoN'fYl<ot).,b'"fL. ~ (Company Offici-al) o..,\,^--<) .~ I 'Z-(:x.JS;- Print Name; p~~c \ 4- ~ ~(7lS:'J-~ Date: Attachment 3 - 1 - Schedule A R R IS Software Support Agreement Standard Guidelines Last Update: May 12,2004 NL - 2 - Purpose The purpose of this document is to provide our customers with information on our standard coverage, the services which are included as part of your annual software support, a listing of call priorities, an outline of our escalation procedures, details on our current service rates. This document will serve as a guideline for the support department but will be superceded by an existing, signed software support contract where applicable. Harris reserves the right to make modifications to this document as required. Standard Support and Maintenance Services The services listed below are services that are included as part of your software support contract. . 800 Telephone support . Software for Life . "On Call" after hours support (Scheduled assistance for installations, upgrades & other special projects, there maybe charges depending on the scope of work) . Technical troubleshooting . E-mail support call logging and notification . Free Harris eSupport access 24 x 7 with the following on-line benefits: Log & close calls View & update calls Update contact information Access published documentation Access available downloads Access Support lmowledge base Participate in Discussion Forums . Standard software releases and updates Defect corrections (as warranted) Planned enhancements Payroll regulated changes Release notes . Limited training questions (15 minutes) . DB tuning / optimization . Customer Care Program Quarterly News Letter with support tips Technical support bulletins Communication on new products and services . Outstanding Calls Report with conference call as required . Design review for potential enhancements or custom modifications . Invitation to annual Customer Conference Last Update: May 12,2004 NL - 3 - Billable Support Services The services listed below are services that are out of scope of your software support contract and are therefore considered billable services. . Extended telephone training . Forms redesign or creation (includes Bill Prints, Notice Prints and Letters) . Setup & changes to handheld interface or creation of new interface . Setup of new services or changes to services ( PAP, ACH, etc) . File imports/exports - Interfaces to other applications . Setting up test areas, database refreshes, backups, restores . Setup of new printers, printer setup changes . Custom modifications (reports, bills, forms, software customizations) . Addition of tokens for Letters module . Setting up additional companies or agencies . Reversal of custom code . Setting up new General Ledgers . Data conversions / global modification to setup table data . Integrity issues due to database updates by non-Harris personnel . Extended Hardware & Operating System support . Upgrades ofthird party software . Installations I re-installations (workstations, servers) Rates Rates are subject to change on an annual basis, quotations will be provided for all billable servIces. HelpDesk Hours Our standard hours of support across all product lines, are from 8:00 a.m. ET to 5 :00 p.m. ET, Monday to Friday, excluding designated statutory holidays. Extended coverage from 5:00 p.m. to 8:00 p.m. is available for west coast clients who are running PUBS & SELECT applications. Last Update: May 12,2004 NL Response Times -4- Response times will vary and are dependant on the priority of the call. We do our best to ensure that we deal with incoming calls in the order that they are received, however calls will be escalated based on the urgency ofthe issue reported. Our response times are as follows: Priority 1: 1 - 4 hours Priority 2: 1 - 8 hours Priority 3: 1 - 24 hours Holiday Schedule Below is a listing of Canadian & US Statutory Holidays. Please note that Harris Support Services will be closed on designated days as outlined below, emergency support will be available from 8am ET to 5pm ET in most cases when there is no US corresponding statutory holiday. New Year's Day Good Friday Memorial Day Victoria Day Canada Day Fourth of July August Provincial Holiday Labour Day Veterans Day Canadian Thanksgiving US Thanksgiving US Thanksgiving (Day After) Christmas Day Boxing Day Closed 8-5 8-5 8-5 8-5 8-5 8-5 Closed 8 - 5 8 - 5 8 - 5 8 - 5 Closed Closed Last Update; May 12,2004 NL - 5 - Call Priorities In an effort to assign our resources to incoming calls as effectively as possible, Harris has identified three types of call priorities, 1, 2 & 3. A Priority 1 call is deemed by our support staff to be an Urgent or High Priority call, Priority 2 is classified as a Medium Priority and Priority 3 is deemed to be a Low Priority. The criteria used to establish guidelines for these calls are as follows: Priority 1 - High . System Down (HW, OS, Database, Application) . Inability to process Payroll checks . Inability to process Accounts Payable checks . Inability to process bills . Program errors without workarounds . Incorrect calculation errors impacting a majority of records . Aborted postings or error messages preventing data integration and update . Performance issues of severe nature impacting critical processes . Hand-held interface issues preventing billing Priority 2 - Medium . System errors that have workarounds . Calculation errors impacting a minority of records . Reports calculation issues . Printer related issues (related to interfaces with our software and not the printer itself) . Security issues . HH issues not preventing billing . Performance issues not impacting critical processes . Usability issues . Workstation connectivity issues (WS specific) Priority 3 - Low . Report formatting issues . Training questions, how to, or implementing new processes . Aesthetic issues . Issues with workarounds for large majority of accounts . Recommendations for enhancements on system changes . Questions on documentation f Last Update: May 12,2004 NL - 6 - Call Process All issues or questions reported to Support Services are tracked via a Support Call, our analysts can not provide assistance unless a support call is logged. Our current process for logging calls is as follows. Place a support call through one of the following methods: 1) eSupport at http://support.harriscomputer.com 2) Email to:support@harrisconwuter.com 3) Phone to: 866-450-6696 4) Fax to: 613-226-3377 );> Your call must contain: Your company name, contact person, software product & version, module and/or menu selection, nature of issue, detailed description of your question or issue, Batch #, Journal #, Account # (if applicable) support call reference # (See Customer Log Form) );> Harris eSupport or the Support Coordinator will provide you with a Call ill to track your issue and your call will be logged into our support tracking database (eFrontOffice). );> Your call will be stored in a queue and the first available support representative will be assigned to deal with your issue. );> As the support representative assigned to your call investigates your issue, you will be contacted and advised as to where the issue stands and the course of action that will be taken for resolution. If we require additional information, you will be contacted by the assigned support representative to supply the information required. );> All correspondence and actions associated with your call will be tracked against the call in our support database. At any time, log onto eSupport to see the status of your call. );> Once your issue has been resolved, you will receive an automated notification by email that your call has been closed. This em ail will contain the entire event history of the call from the time the call was created leading up to the resolution of the call. You also have the option of viewing both your open and closed calls on-line through eSupport. );> If the issue needs to be escalated to a programmer, your issue will be logged into our Development database and you will be provided with a Tracker # to track the progress of your development issue. At this time, your support call will be closed and the Tracker # provided will become your new reference #, your Tracker will remain open until your issue has been completely resolved. Issues escalated to Development will be scheduled for resolution and may not be resolved immediately depending on the nature and complexity of the issue. );> Contact the support department at your convenience for a status update on your Development Tracker, or log onto eSupport to view your Trackers on-line. Last Update: May 12,2004 NL - 7 - Escalation Procedures Our escalation process is defined below. This process has been put into place to ensure that issues are being dealt with appropriately. If at any time you not satisfied with the resolution of your issue or the response to your call, please contact our Support Coordinator and we will have the appropriate individual follow up. Escalation Process Your call is logged with Harris Support JJ If your call is a Priority 1 and it has not been responded to within 4 hours, the support resources responsible for your call are notified by email and your call is escalated internally to a level 1. Priority 2 calls will be escalated if not responded to within 8 hours and Priority 3 calls not responded to within 12 hours will be escalated. JJ If your Priority 1 call has not been responded to 4 hours after the designated timeftame, the Team Leaders are notified and your call is escalated to a level 2. JJ If your Priority 1 call has not been responded to after 5 hours from the designated timeframe, the Director of Support Services is notified and your call is escalated to a level 3. U If your Priority 1 call has not been responded to after 6 hours from the designated timeftame, the VP of Support Services is notified and your call is escalated to a level 4. JJ If your Priority 1 call has not been responded to after 7 hours from the designated timeframe, the senior Management Team is notified and your call is escalated to a level 5, our final level of escalation. Last Update: May 12,2004 NL - 8 - Connection Methods To ensure we can effectively support our clients, we ask that a communication link is established and maintained between our two sites. It is the client's responsibility to ensure the connection is valid at your location so that Harris can connect to your site and resolve the issue at hand. Our supported methods of connection are: . Direct Internet . VPN . RAS . Direct Connection (Modem) . Terminal Services (Remote Desktop Connection) **Select clients will require a backup connection for file transfers. . PC Anywhere (excluding PUBS & Select) Last Update: May 12,2004 NL - 9 - Appendix A HARDWARE SUPPORT AGREEMENT Purpose The pwpose ofthis document is to provide our customers with information on our standard coverage and the services which are included as part of your annual hardware support. This document will serve as a guideline for the support department but will be superceded by an existing, signed hardware support contract where applicable. Harris reserves the right to make modifications to this document as required. Standard Hardware Support and Maintenance Services The services listed below are services that are included as part of your hardware support contract. . 800 Telephone support . "On Call" after hours support (Scheduled assistance for installations, upgrades & other special projects, there may be charges depending on the scope of work) . Modem support (through one of our recommended methods of communication) . Technical troubleshooting On components listed on your Hardware Service Agreement Operating System Development tools/licenses . Limited training questions (15 minutes) . Creation of backup scripts / backup recovery . Recovering data resulting from system crashes . Recommendations on specific hardware requirements Billable Support Services The services listed below are services that are out of scope of your hardware support contract and are therefore considered billable services. Please note we do not provide Hardware support on any Printers. . On-site installation or upgrade of hardware or other components . Extended telephone training . Reconfiguring hardware and file servers . Recovering data resulting from client error . Upgrading of hardware systems . Preventative maintenance monitoring or other services . Recommending or assisting with disaster recovery plans Last Update; May 12,2004 NL - 10 - Call Priorities In an effort to assign our resources to incoming calls according to the urgency of the issue being reported, Harris Computer Systems has identified three types of call priorities, 1, 2 & 3. A Priority 1 call is deemed by our support staffto be an Urgent or High Priority call, Priority 2 is classified as a Medium Priority and Priority 3 is deemed to be a Low Priority. The criteria used to establish guidelines for these calls are as follows: Priority 1 . System Down (HW, OS, Database, Application) . File system full . Performance issues of severe nature impacting critical processes Priority 2 . System errors that have workarounds . Performance issues not impacting critical processes . Workstation connectivity issues (WS specific) . Backup problems Priority 3 . Recommendations for enhancements on system changes . Training on network of IS related functions Last Update: May 12,2004 NL - 11 - Appendix B THIRD PARTY SUPPORT AGREEMENT Purpose The purpose of this document is to provide our customers with information on our standard coverage and the services which are included as part of your annual 3'd party support. This document will serve as a guideline for the support deparbnent but will be superceded by an existing, signed contract where applicable. Harris reserves the right to make modifications to this document as required. Standard Third Party Support and Maintenance Services For those clients with Harris Computer Systems maintenance on 3rd party products, Harris will provide support as described below. Harris provides 1 sl line support for all 3rd party products listed below and will escalate to the vendor if required. Please note that 3rd party installations & preventative maintenance services are not included as part of your maintenance unless otherwise indicated below. . Informix - Standard Engine & Online Engine databases. Support provided for Harris database related issues ODBC installation & connection to Harris databases Updating database to support new Harris software releases Entitlement to new fuformix software shipments Initial Infonnix installation & configuration . Unidata Entitlement to new Unidata software shipments fuitial Unidata installation & configuration 1 slline support for troubleshooting Unidata related issues . GUI Entitlement to new GUI software releases Installation & configuration 1 sl line support for troubleshooting GUI related issues . System Builder & SB+ Entitlement to new SB software releases fustallation & configuration 1 sl line support for troubleshooting SB related issues . Report Writer (Impromptu) - Administrator & User License Initial installation & configuration of Impromptu software. Set up ofImpromptu and establishing a connection with the PUBS software Limited assistance in utilizing standard report writer functionality (15 min. max.) . Report Writer - Data Dictionary Updates to catalog which reflect changes in PUBS upgrades Assistance in locating information within the catalog Direction on an existing report (a copy of the report is needed) . Crystal Reports (run time only) - Configuration ofODBC to run application reports and export data from reports. Applicable for OWF clients only. Last Update: May 12,2004 NL - 12 - . MSS 2000 - Databases Support provided for Harris database related issues ODBC installation & connection to Harris databases Updating database to support new Harris software releases Configuration of Backup Maintenance Plans . Solid Databases Support provided for Harris database related issues ODBC installation & connection to Harris databases Updating database to support new Harris software releases Configuration of Backup Maintenance Plans Billable 3Td Party Services . Upgrades & installations (other than at time of initial purchase) . Report Writer upgrades & installations (other than at time of initial purchase) . Re-establishment of ODBC connection if connection was lost due to actions of non-Harris personnel. . ODBC connections to other 3rd party products . Creation of custom reports . Report Writer training Last Update: May 12,2004 NL <D[B Q f'-.._ U1<D 8U1 N U18 Q 0_ "<t"<t 8U1 N "<to Q~ XX (") U1- 8U1 N (")0 00 N~-XXX 8(") N NO Q~ 000- aN N o~ 25(") o ro- aN N en c o ~ .52 0.. a. ro 2 'S en Q) U ~ o .8 en 'C Iii I E e Q)- ~2 ~ ~ ~ ~ .~ ~ 3l.8 w$ E ro 0-0 Ui 5 :J 0 u= -0 ro Q) , en en c I Q) co 0 Q) O)..c :.;:::::; ""5~..a~ -oJ::Q)Cl oUSQ) ~ C Ie ~(t~~ a. ro "" ~:5~~ai~O ena Q)8 :s f'-..- ro(") Q)N LL "<t C Q) E J:: U ro ~ c 0:.;:::::;""C a:J(ii .C ~ ..c ~~-g -0 -0 <( Q)~ Iii~ 56 il:'a 0(") en ro :;:; 'c en Q) U .;;: Q) -0 ro > Q) 'C ~ ro ro -0 ~-o Q~ 0- 8 ~ N c E Q) 2ro en-o >-0 en E Qj E "E 0 o 8 ~ ro 0.8 5 en >-Q) :!::::: 0) .- c "S~ -0 U C , ro en ClQ) c U = ro ~~ ~E en 'C Iii I c Cl 'w Q) -0 ro :J en .;;: en- Q) ~ -0 Q) :; U 2 Ui ~ en en- Q) Q) ~~ ~~ ~-g U Q) Clro C-o :;:; 0 o E ~~ ~ 8 o ro ~ 0 a. _ E ' J:: C o E J:: U ro Q) en Cl .~ en Q) ~ Q) U C ui ro en C Q) Q) U ~I-e_ ro a. E C Q) .Q en U .Q Q) UI-W_ .!!! en -0 Q) 15 =:; C C -0 .- ~1-2- 5 ~ ~ "t; c "-E ~1- ~- ~ .g-o ~ U ~ :J ~.Q ~ W 2f--c:E Co l....CO C..c ~ 8.~ ro_~ 8 g.x ~5 0_ enl- Cen ~ - ro E ~ m~ J:2 <17 >- ro en '+- -- .::s::. l....- >- o 8m 2(/) Q) ox roQ) g 6~ s:5 co ex:> __ l....- l.... C ~~ Q)J2 -E ll>" ~-g .~ ~ Jg "* ~ ro roc roE :J enQ) sro c ro~ ~ ~roQ)~ "*ro I Q) <' <l. co:S ~c3m2 Su 2a~-o 2 ~~-~o ~{5 E~<I7g enlii o T""" 1 0 O~@)Q ~ri .~ 0 '+- --.J '+-.c ~ ~2~ ~-fi I~(/):S >2 .E' cQ) -o_Q) rou ~ Q) cf; al~ rl~ 3l-o .= roE ii :::J Q) Q) ::Ji Q) LL l.... ""C 0- _ -0 g. .;;: U ro "<t J::- 0::: e ro~IU c.. ~c Clro C C co .~ ~ 6 0 ~~8.~ :s:s 0C 0.0 ~~ ~~~~ (/)0) roal_o Q) C 51-W_ ~;;:; il:'oen~ :;:;~ o en >- 2 :J .::::>-_ (f)___(/) ""C 2"E2~f-~~ C ro en .- ...J ~~:S:g 5 Q) (3 :J ..Q 5l ro :5 en - oCS U Q) E E Qj ~ Q) E cocO) (j)~ ~~ ~ro (/)1: E E al 5 -o'iij 2 Q)1-21-~ E enUioen in' in' en ~ ~ J::_Q) 0) 0) b l....- "> .~ .~ c 2 ~ E .- 0 co 0 e ..Q ..Q 'w S -- roro(i)- ~~ g>.8:>< E10 .- 0) Q) I- l....""- gJ .~ 32 5 I-.E .Ql ctOQ) enE Q) ~ C .;;: ~ E Q)croCl >Q) ..cocnc Q)-+-' ~uffi.3 2~ ..c en ::Ji :!:::::: en Uj--.J~cUj E~ 6oCSoCS ro ~ E"" .!!! 0... 0... ~ 3l 8 Q) ro-g-g~:J en:5 a. ro ro 0 .!!! [l Cl 5 ~ ~ .~ ~ ~.~ 0(9(90I <(al i'i c en 19 o -0 c .Q E OJ -0 C ro N c Q) Q) 5 W ..Q en Q) en en Q) U o 0.. en 'C Iii I U :J -0 o 0.. Q) :5 .8 -0 Q) -0 -0 ro en Q) :; ro ~ ro c o E -0 -0 ro .8 Q) :J -0 Q) Iii en Q) en ro Q) U .~ -0 Q) en ro Q) U c (5 c en ro J:: Ui o U Q) U c ro c Q) ~ ro E Q) o o ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING SYSTEM AND ASSOCIATED SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3373- PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING AWARDED TO HARRIS COMPUTER SYSTEMS, INC. IN THE AMOUNT OF $56,755). 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 3373 Harris Public Utility Billing System $56,755 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: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 6-ORD-File 3373 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 DEPARTMENT: Materials Management ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department dispatching and records management 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 3384-Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $148,079.66). FILE INFORMATION The City of Denton uses the VisionAir Public Safety Software Suite for managing all aspects of Public Safety Dispatching as well as managing the Public Safety Records of Police and Fire Departments. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. VisionAir Inc. is the sole-source vendor for maintenance and support for the VisionAir Public Safety Software Suite of modules. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, do not have to be competitively bid. RECOMMENDA TION Award to VisionAir, Inc. in the amount of$148,079.66. PRINCIPAL PLACE OF BUSINESS VisionAir, Inc. Castle Hayne, NC ESTIMA TED SCHEDULE OF PROJECT Annual Maintenance is being paid from October 1,2005 through October 30,2006. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funding for this purchase order is budgeted in the FY2005-06 Technology Services operating budget account 830700.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter Attachment 3: Cost Analysis l-AIS-File 3384 Attachment 1 Denton TX, City of Tiffany Wei 601 East Hickory, suite E Denton, TX 76205 Invoice: IVC07665 Invoice Date: 7/29/05 Date Due: 9/30/05 24x7 CAD Software Maintenance Renewal (Admin Only) October 1, 2005 through September 30,2006 VisionCAD: 7 Position 24x7 CAD Software Maintenance Renewal (Admin Only) October 1, 2005 through September 30,2006 VisionGEO: 5 Position 8x5 RMS Software Maintenance Renewa(Admin Only) October 1, 2005 through September 30,2006 VisionRMS Base: 40 Position 8x5 Jail Software Maintenance Renewal(Admin October 1, 2005 through September 30,2006 VisionJail: 5 Position, not live Fingerprint 24x7 Mobile Software Maintenance Renewal(Admin) October 1, 2005 through September 30,2006 VisionMobile Message Switch: 100 Position 24x7 Mobile Software Maintenance Renewal(Admin) October 1, 2005 through September 30,2006 VisionMobile Base Package: 85 Position Not Live Paperless Citation Fire Mobile Not Live 8x5 Fire Software Maintenance Renewal(Admin Only) October 1, 2005 through September 30,2006 VisionFire: 20 Position 8x5 Inform SW Maintenance (Admin Only) October 1, 2005 through September 30,2006 VisionInform: 10 Position 24x7 Mobile Software Maintenance Renewal(Admin) October 1, 2005 through September 30,2006 Job#027043 VisionMobile Message Switch: 41-50 Position $38,442.24 $3,551.16 $15, 13 1.44 $4,276.82 $17,619.85 $54,338.02 $0.00 $4,887.29 $3,559.56 $5,873.28 Attachment 1 Denton TX, City of Tiffany Wei 601 East Hickory, suite E Denton, TX 76205 Invoice: IVC07665 Invoice Date: 7/29/05 Date Due: 9/30/05 Go To Assist $400.00 Subtotal: Tax Total: $148,079.66 $0.00 $148,079.66 Remit Payment to: VisionAir, Inc., Dept. at 952157, Atlanta, GA 31192-2157 If you have any questions please call, 800.882.2108 ext. 5166. Attachment 2 r Tiffany Wei Assistant to the Chief for Information Technology and Crime Analysis Denton Police Department 601 E. Hickory St., Suite E Denton, Texas 76205 June 16,2005 Dear Ms. Wei, VisionAir is the sole source provider of support for its software that is used by the Denton Public Safety. Please let me know if you have any questions. We appreciate your business. Warm regards, Mitzi Kincaid Senior Financial Manager o ~ ~- LOCO o"<t o~ N o ~ ~- ;;rOl 0C') O~ N N ;g ~- (;)0 O"<t O~ N o C')O 00 N IJ)- ON O~ N o NO e ~- O"<t O~ N Ol o <0_ 23 LO o CO o N N C') C Q) E .J::: () ro ~ o 23 N8 eN o .~ ~Ol .~ <0_ f/)LO c~ Q)yt E Q) t:: ~ [~ ~ 5 ~~ u::: 0 f/) -0 f/) C :J ro 0 Q) "S: .~ Q) & a. IDS :5 f/) .22 f/) Q) C () o C ~ ~ o Q) f/) C ~'iij Q) E m ~ ,g ~ c..QiI:' o :J 0 :.;:::; a. (/) .9-"'C m <3 .~ :J (/) ~ c Q) C C O:J<( "<t ~C') ~~ '5 ~_ (/)~ ro :E .E 'iij C o 'w :> >- Q) me f/) C .~ Q) :n > :J Q) a.Q) N:5 ID .~ i= f/) Q) .~ E C o Q) f/) Cl -0 ro C Cl ro C ~ 0 E "m Q) m c ~ (/) .~ Q) .~ :> = g Q) Iii .:g ~ ~ "'C C ~ Iii~ ~~ ~ ~ 'E "S: ~ 5 a... If) ~ t) ...: ~ m Q) ~ <(c .~ "'C E c .E <3 m 0 ~ .2 E "'0 Q) ~ ~ .~ E c:5 a.:.c; >0 ._ ro Cl f/) ro 0 () C IDa. -;.E! m ~ ";:n .~ m "'C m 0 "m :J 2: 0 n:s"'C;"'::'0 ~~ ~:5 EOlID ~~ ~ '-' ~ Q)_ Q) ~ ~ 0.2 -- 0 ~~ ~o.. 'S; ~ - - 0 Q; - - ,.. e-'- .!:Q 15 E 3: ~ 2 ;...::, .g ; 5~ oU) cuU).:!2a.c ~ ~ ~ .:- ~ ~ ~ ~ ~ ~-m "'0- O~N~~ Q) Q) C LL a..- >. m 0 ~rn ctI_"'O a.-g:CON _ ~ .!:Q ~ ~ ~ g 0 N >- ~ _ ~ - - C Q) - - it) .- .~:E ~ -- co c .0 ~ .~ it) t:: """ 0 "C C g C .- 0 lti 8.. "'C "C a. Q) "E~ LL_a... gg-~a.o g- ~m ~..c ~(/)(/)<DN Q) .~ m u:: ~ ~ Q) m .:!!. If) 3: D:::Q) Q)l... -Eo~m() Q) Q)-= ~.E 60 E oc t)>.~~ :.;:::; .~> ~ a... 0 .s :J t:: >- ~ Q) Q) 0 .- a. () .- .. ~. :5 a. E (; ~ :J Q) .~ .g :~ ~m -gg I.t)~",,"a.o.. ~ <9_ ~ .~ 5 ~ 5 ';; @. 0 :J ~:.c; a.E OQ)_f/) E- "> m E Elf).... = ~ m Q) "'0 ~~ 88~ ~mQ)o~ ~ C 0 ::::Q)Q) .A'"C ~ lo... > (j) +-' "m ID ...... 0 Qj.E ~ ~ ~ .~ C> C "E ~.~ .g ~:E;' .~ ~ ~!~ ~Ii ~~~~. ~ l~! ~~~~ ~ilii~i ~ [~i jtii& li29Q) ~ EE_ %~_~ ~~~I~ Q) 8~g ~~g~ &~ro~M ~ ~ ~ ro f/) .!,1 :n :J a. f/) C o ~ Q) :J lJ 'w :5 .2 Q) .J::: o o Q) (;; 5 '5 f/) f/) Q) :J f/) .!!1 Cl C :;::; o a. ~ '0 Q) E :;::; .~ ~ :J f/) lJQ) ~=o o (;; CL Cl ~ Q) () C "S; 0 ~ti f/) ro f/) Q) ti > Q)ti ~ ~ >-0 Q; () ID 2 > ro ~~ E ~ .~ C o ~ 2 (;j Q) ~ -0 Q) E .~ Cl C :~ ~ ~ rr :J U ~:E ~ f/) .B E ro ";:n Q) Q) B ~ c- ~ .S: C .2 ~ m m ~ m ~ ~ ~ B g -g ~ 0 .E 0 ~ 2:oom -gtf ~ e Q) C ~ 2 Q)-.O' m c~~ ~ ~ ~ ~~~ ~o ~ ~~-~ ~~ ~ .c C ~ ~~ E ~ --- ~ - ~~~ ~~fK~~ ~ ~E~ ~"Ern~ ~ o m C Q) m 0 ~ () a. :J a. 1: a.';;' 0 :S "0 ~ ~ .E ID:E .2 C 5 .2 ~ - ~ (; 1:) Q) 0 1:)~~ +-' g Q) 0.- c- ~mm 2-g~~.2 "O~~ mo..~2:SQ) ~~~ ~m8.s O)~ ..QQ)Q) ~ooCf.) cE o.cm 0 +-' +-' ~ ~ ~ .~ ~ -g ~ i ~ o ~ 0 ~ Q) ~ 0 .~ ~ ~+-,o m~"O~ >>0) m.8.8 ~a.cQ) +:;C ~ ~ Q) ~ 0 m > ~ .~ t::a...:c g(;)~~ 0"0 8..8~ :Bo~m~-g ~"O::J -gcmg- O)+-' Q) C 8 ~ ~ .c~ .~ ~ ~-g5 0 o~ ~ I f ~ .r i ~ ~ ~ ~ g-m.g-* ~O)E~ ~~ ii5 ~~0' f/)E~-g~ O:J 3:(;)C Q)Q)::J o..~ ~~~~ :c~~~ o~ E~~a. ~ ~~a. ~ ~ >- f; :;::; ~ '2: ~ ~ :g .:go8~ a:~<(~ ~O: ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AND ASSOCIATED MODULES USED FOR POLICE AND FIRE DEPARTMENT DISPATCHING AND RECORDS MANAGEMENT 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 3384-PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AWARDED TO VISIONAIR, INC. IN THE AMOUNT OF $148,079.66). 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 3384 VisionAir Inc. $148,079.66 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: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 5-ORD-File 3384 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit 349-8595 ACM: Kathy DuBose Ii SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for Geographic Information System (GIS) 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 3382 - Purchase of Annual Maintenance for Geographic Information System (GIS) Software Package awarded to Environmental Systems Research Institute (ESRI) in the amount of $35,000.00). FILE INFORMATION The GIS User Group consisting of Public Safety, Water, Electric, Solid Waste, Engineering, Planning and Technology Services meet quarterly to discuss GIS projects for the City. The ESRI software is the tool that has been used to develop GIS solutions that the City's departments utilize. The City of Denton uses the ESRI GIS software package to create and manage City inventories, produce web interactive maps, as well as paper maps, and provide a tool for data integration and analysis to the user departments. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The City of Denton is in the process of upgrading the GIS database server from ArcSDE 8.0 to ArcSDE 9.0. The process for upgrading the software includes installing ArcSDE on the server and configuring the server to be accessible from client workstations. ESRI, as owner and manufacturer, is the sole-source vendor for maintenance contracts for the GIS software package. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Environmental Systems Research Institute in the amount of $35,000.00. Agenda Information Sheet September 20, 2005 Page 2 PRINCIPAL PLACE OF BUSINESS ESRI Redlands, CA ESTIMA TED SCHEDULE OF PROJECT Maintenance is being paid from December 1, 2005 through November 30,2006. FISCAL INFORMATION Funding for this item is budgeted in the FY 2005-06 Technology Service operating account 830400.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter Attachment 3: Cost Analysis l-AIS-File 3382 Attachment 1 I1EII ESRllnc 380 New York Street REDLANDS CA 92373 SUBJECT: MAINTENANCE QUOTE DATE: TO: ORGANIZATION: 07/22/2005 Sylvia Wood CITY OF DENTON TECHNOLOGY SERVICES DEPT 940-566-8533 PHONE #: 940-349-7897 FAX#: FROM: FAX#: EMAIL: Melissa Lestina 909-793-4801 PHONE #: 909-793-2853 Ext. 2459 mlestina@esri.com Number of pages transmitted (including this cover sheet): 6 QUOTATION #25164703 Please find the attached quotation for your forthcoming software maintenance term. As you know, keeping your maintenance current entitles you to exclusive benefits that may include technical support, software upgrades, and User Conference registrations. If you choose to discontinue your maintenance, you will become ineligible for maintenance benefits and services. All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your coverage at a later date. This quote has been prepared using new ArcGIS 9.1 licensing guidelines. At 9.1, Arclnfo will include the functionality and data from ArcScan, ArcPress, Maplex, and StreetMap; ArcEditor will include the functionality and data from ArcScan, ArcPress, and Streetmap; ArcView will include the functionality and data from ArcPress and Streetmap; ArcGIS Engine will include the functionality and data from StreetMap; and ArcGIS Server will include the functionality and data from StreetMap. Due to these changes, these extensions are no longer itemized in maintenance quotes because coverage will be included with the maintenance fee for the core product. Customers who have multiple copies of some ESRI products may have the option of supporting some of their licenses with secondary maintenance. Secondary maintenance entitles users to software upgrades and technical support through a primary license. Users must support at least one primary license for every ten copies of each version of a product (e.g., ArcView 3.x licensing is regarded as separate from ArcView 9.x). Please contact Customer Service to find out more about the availability of secondary maintenance. If you are using ESRI products that are at previous versions, or if you have software that is not currently covered by one of our programs, please contact us for information about the different options that are available to you. I1EII ESRllnc 380 New York Street REDLANDS CA 92373 Do you need training? You can get affordable ESRI software training for your entire organization with a subscription to ESRI Virtual Campus. To find out how, visit the campus: http://campus.esri.com/campus/catalog/subscriptions If you have any questions or need additional information, please contact Customer Service at 888-377-4575. 380 New York Street REDLANDS, CA 92373 Phone: 909-793-28532459 Fax #: 909-793-4801 Quotation Date: 07/22/2005 Quotation Number: 25164703 CITY OF DENTON TECHNOLOGY SERVICES DEPT 601 E HICKORY STE A DENTON TX 76205-4305 Attn: Sylvia Wood Send Purchase Orders To: ESRI, Inc. 380 New York Street Redlands, CA 92373-8100 Attn: Melissa Lestina Please include the following remittance address on your Purchase Order: ESRI Inc. File #54630 Los Angeles, CA 90074-4630 Customer Number: 552 Item Qty Product# Description Unit Price Extended Price IF YOU HAVE ANY QUESTIONS REGARDING YOUR MAINTENANCE QUOTATION, PLEASE CONTACT CUSTOMER SERVICE AT 888-377-4575 10 52384 MAINT,PRIM,AI,FL Arclnfo Floating Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 20 7 52385 MAINT,SCNDRY,AI,FL Arclnfo Floating Secondary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 30 52396 MAINT,PRIM,COGO,FL ArcCOGO Floating Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 40 2 87192 MAINT,PRIM,AV,SU ArcView Single Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 3,000.00 3,000.00 1,200.00 8,400.00 500.00 500.00 400.00 800.00 This quotation is valid for 90 days and is subject to your ESRI License Agreement. The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (ESRI). Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. ESRI reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide ESRI with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Issued By: Melissa Lestina Ext: 2459 [LESTINAM] To expedite your order, please reference your customer number and this quotation number on your purchase order. 380 New York Street Quotation REDLANDS, CA 92373 Phone: 909-793-28532459 Page 2 Fax #: 909-793-4801 Date: 07/22/2005 Quotation Number: 25164703 Item Qty Product# Description Unit Price Extended Price Hardware Platform: GENERIC DESKTOP 50 25 87193 MAINT,SCNDRY,AV,SU 300.00 7,500.00 ArcView Single Use Secondary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: GENERIC DESKTOP 60 7 87193 MAINT,SCNDRY,AV,SU 300.00 2,100.00 ArcView Single Use Secondary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: GENERIC DESKTOP 70 87194 MAINT,PRIM,AV,CU 700.00 700.00 ArcView Concurrent Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: WINDOWS NT-INTEL 80 3 87195 MAINT,SCNDRY,AV,CU 500.00 1,500.00 ArcView Concurrent Use Secondary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: WINDOWS NT-INTEL 90 87198 MAINT,PRIM,AG 3D,CU ArcGIS 3D Analyst Concurrent Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: WINDOWS NT-INTEL 500.00 500.00 100 87213 MAINT,DSG,ASDE,SRVR,2CPU 3,000.00 3,000.00 ArcSDE Developer Support Group Maintenance for 1 Server 2 CPUs and 5 Read and Write Connections Start Date: 12/01/2005 End Date: 11/30/2006 This quotation is valid for 90 days and is subject to your ESRI License Agreement. The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (ESRI). Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. ESRI reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide ESRI with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Issued By: Melissa Lestina Ext: 2459 [LESTINAM] To expedite your order, please reference your customer number and this quotation number on your purchase order. 380 New York Street REDLANDS, CA 92373 Phone: 909-793-28532459 Fax #: 909-793-4801 Quotation Page 3 Date: 07/22/2005 Quotation Number: 25164703 Item Qty Product# Description Unit Price Extended Price 110 92628 500.00 120 93094 130 93094 140 2 97534 150 98696 MAINT,PRIM,AG SRVAN,CU 500.00 ArcGIS Survey Analyst Concurrent Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: WINDOWS NT-INTEL MAINT,PRIM,AV,EXT,SU 1,000.00 ArcView with Extension Single Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: GENERIC DESKTOP 1,000.00 MAINT,PRIM,AV,EXT,SU 1,000.00 ArcView with Extension Single Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: GENERIC DESKTOP 1,000.00 MAINT,AIMS,1 SRVR,2CPU ArclMS 1 Server 2 CPUs Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 2,000.00 4,000.00 MAINT,PRIM,AG PUB,CU ArcGIS Publisher Concurrent Use Primary Maintenance Start Date: 12/01/2005 End Date: 11/30/2006 Hardware Platform: WINDOWS NT-INTEL 500.00 500.00 Subtotal Shipping & Handling Estimated Tax Total 35,000.00 0.00 0.00 $ 35,000.00 This quotation is valid for 90 days and is subject to your ESRI License Agreement. The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (ESRI). Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. ESRI reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide ESRI with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Issued By: Melissa Lestina Ext: 2459 [LESTINAM] To expedite your order, please reference your customer number and this quotation number on your purchase order. 380 New York Street REDLANDS, CA 92373 Phone: 909-793-28532459 Fax #: 909-793-4801 Quotation Page 4 Date: 07/22/2005 Quotation Number: 25164703 Item Qty Product# Description Unit Price Extended Price BY SIGNING BELOW, YOU ARE INDICATING THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION. DO NOT USE THIS FORM FOR ORDER ACTIVATION IF YOUR ORGANIZATION WILL NOT HONOR AND PAY AN INVOICE THAT HAS BEEN ISSUED AT YOUR DIRECTION WITHOUT ADDITIONAL AUTHORIZING PAPERWORK. To expedite your order, either attach a copy of this quotation to your purchase order when it is remitted to ESRI, or sign below and return this quotation to indicate your acceptance. ESRI's address and fax number are provided on the first page of this quotation. If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax ESRI the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional information is required to complete your request. If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order. If you choose to discontinue your support, you will become ineligible for support benefits and services. All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your support coverage at a later date. By signing below, you are authorizing ESRI to issue a software maintenance invoice in the amount of: $ Signature of Authorized Representative Name (Please Print) Title This quotation is valid for 90 days and is subject to your ESRI License Agreement. The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (ESRI). Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. ESRI reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide ESRI with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Issued By: Melissa Lestina Ext: 2459 [LESTINAM] To expedite your order, please reference your customer number and this quotation number on your purchase order. Attachment 2 ~. '.. y,- '-or. ,., ~ : .)~ -.. ....-.- .. - ..~ .~:- :..;;.~'...;. ....-=-= ~"=. E~\~lM , .' . .. .. - . I ~.~~ . ",' '"<''' :' y:~.-. ~f1r'~.~~i~gr.i:~~'~li~~ti~.:~~ . ., '.! ~ }~ ' "L:F':--: . . "~"'_" u:l:!:, on. ...... _~ . ..n . ,. :--.. :-. - ...... -.. . - ... .. . ~.~ ~ .... . i:". - . . . .," .. . ~ . . ... .-. ... y -.... - ....~.I,>;. -'... .~?" ' ......: I. I::: H. ,.....,.._..,~. :.. .',. /:.... ~~. ,.:':..1.... x' ... ........ ;:~r ..I~..m;.18.~.">!Mf' ;1!'fP!IlIIII.11I!_1~".JIIIIrtl;I ~.~I:~ c:0 CD 0 .... 0 0 c ....... 0 w L!) L!) E 0 0 c:0 I ~ N 0 ro L!) c 0 0 ro ....... 0 X E "<t N 0 c:0 U 0 ij:; N "<t 0 jg 0 0 ..... ....... a_X w c:0 -e 0 c:0 0 N W N C) c:0 0 W 0 0 :5 ....... 0 N L!) -a 0 c 0 ..-- ro N E- w I~ en .... E I ~ Ie c -a .- ::::l ..c t S 0 0:: 0.. 0 0.. ::::l E- en en W c ~ 0 ~ en .... c W W 0.. E 0 I ~ >- u ro c c w ro e> E w Q) E w ~ ....- en c 0 W 0 -g EO) 0) ro w 0 .8 0 0).... roN 0 w c . ..t t roOO ro E E E 0 Q) e e E - en - W en W (/) ~ ro 0 2: (/) 0) ~ ~ en c c ..... <( <( w o 0.. "2 ~ o..w w ro-a -a 0 "5 E ~ ~ ~ en(/) 0) 0) 0 w- 0.. 0.. 5: 0 C) :J :J en en ~ ~ 0 ::::l I~ co w 0 LL - en "c "E -a <( ro I ~ 0 .....- CD ro L!) ro 5: L!) c <1= c:0 .Q 0 ..-- en (/) :> - ro .8 :E c en - W u ro 't: 2 c w -a 'S;: 0 clc .Q en .... w ro-a - c ro ro ..... 0:: ~g (/) W W:J .... c w E ..c u ro ~ ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR GEOGRAPHIC INFORMATION SYSTEM (GIS) SOFTWARE P ACKAGE 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 3382 - PURCHASE OF ANNUAL MAINTENANCE FOR GEOGRAPHIC INFORMATION SYSTEM (GIS) SOFTWARE PACKAGE AWARDED TO ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) IN THE AMOUNT OF $35,000.00). 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 3382 Environmental Systems Research Institute $35,000 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. 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 ~~ 5-ORD-File 3382 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose _ SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of annual maintenance for the Nortel phone system including 24 hours per day 7 days per week support on all equipment located in City of Denton facilities as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefore; and providing an effective date (File 3378-Annual Maintenance for Nortel Phone System awarded to Verizon Southwest in the amount of $44,092.85). FILE INFORMATION The Nortel phone system provides mission critical support for all departments within the City including Police and Fire, Electric, Water, Solid Waste, Customer Service, Engineering, Library, City Manager's Office, Tax, Municipal Court, Facility Management and Finance. It is essential for the City of Denton to upkeep current maintenance with the vendor in order to ensure availability of upgrades, software fixes and access to knowledge and support resources. RECOMMENDA TION Award to Verizon Southwest in the amount of $44,092.85. PRINCIPAL PLACE OF BUSINESS Verizon Southwest Dallas, Texas ESTIMA TED SCHEDULE OF PROJECT Maintenance contract is scheduled for the term 2005 to 2006 budget year. FISCAL INFORMATION Funding for this purchase order is budgeted in the FY 2005-06 Technology Services operating budget account 830200.6504. Agenda Information Sheet September 20, 2005 Page 2 Attachment 1: Quote and CISV Certification Attachment 2: CISV Letter Attachment 3: Cost Analysis l-AIS-File 3378 Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1 ~ ver'ZQD CITY OF DENTON 2005 Maintenance Renewal Annual cost Material Prior year Equiped Per Port Pricing at Equipped Location Address Component Code/Serial # ports Ports Approved rates Ports Notes NMA QUOTES CITY HALL 2-2666 215 E. McKinney Meridian Opt 81C PBJ< J00025 Rei 25.15 777 16,924.80 24 X 7 Switch only with meridian mail Meridian Mail 2,102.40 Valcom Paging 102.54 Recorder Announcer 736.86 19,866.60 City Hall West 2-2194 221 N. Elm St Meridian Remote 80 1,968.00 24 X 7 Switch Only 1,968.00 CITY HALL EAST Municipal Center 2-5904 601 E. Hickory Meridian Opt 61C PBJ< L00054 Rei 25.15 437 11,709.60 24 X 7 Switch Only (2-2666) Valcom Paging 561.05 12,270.65 SUBSTATION SPENCER Power Plant 1701 C Spencer Ri Meridian Opt 51 C PBJ< L00098 Rei 25.15 141 3,911.40 24 X 7 Switch Only 2-1031 3,911.40 SERVICE CENTER 2-2665 901 Texas Street Meridian Opt 11C PBJ< 934490 Rei 25.10 225 6,076.20 24 X 7 Switch Only 6,076.20 Monthly payment schedule adds 6% to price 44,092.85 Note: The Prices Quoted are At or Below CISV catalog prices Verizon CISV # 1750573444601/40009 Pricing presented by: Verizon Enterprise Solutions Corporate Account Manager Daniel Mendez 972-719-3203 ph 972-717-7611 fax Daniel. Mendez@Verizon.com Attachment 2 . CISV Letter Texas GSC VID #1750573444600 CISV ORDERING ADDRESS 816 CONGRESS AVENUE SUITE 1500 AUSTIN, TX 78701 This is a true and accurate copy of the catalogue approved with the General Service Commission. Effective Date of Catalogue: August 1, 1998 This catalogue has been updated. Last version of update Is dated Wed Mar 28 10:45:31 2001 VENDOR CONTACT INFORMATION CISV & CMBL Contact Information Daniel Mendez 972-719-3203 972-281-2524 ndez@Verizon.com Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-1 .,..-- .:1""'-- ~"" " ,.. . ~ ._~ .. . t~ QISV Letter PRODUCTI SERVICES INFORMATION Class Codes Available: Cables: Printer, Disk, Network Cameras, Di ital (AIS only s: Accelerator, Graphics, Math Co-Processor ,Memory (RAM and RO ark, SIMMS ication Boards: Fax, Modem Internal ication Control Units: Concentrators, Multi lexors, Cou lers Data Entry and Remote Job Entry Devices, Voice Activated: Voice nition/Di itization, S eech S nthesizers Drives: Compact Disk (CD-ROM) . s, Flopp Disk es, Hard/Fixed Disk Drives, Tape yboards S stems, Microcom uter ion/Accelerator Boards: Hard Drive Controller Cards, Memory, ocessor, SCSI, Video Cards uters, Deskto or Towerbased mputers, Handheld, Laptop, Notebook, Electronic Organizers icrocomputers, Multi-Processor s, External, Data Communications onitors, Color & Monochrome (CGA, VGA, SVGA),Flat Panels otherboards nsion Moduels/Ports, Hubs, Line Drivers,MSAUS, Routers, Transc N Is: Joy Sticks, Graphic Digitizers, Light Pens, Mice, Pen Pads, balls Printers, Dot Matrix inters, Ink'et Printers, Laser Printers, Other les: Printer, Disk, Network ips: Acceleratory, Graphics, Math Co-Processor, Memory (RAM and RO , SIMMS ication Boards: Fax, Modem Internal, Network Cards munication Control Units: Concentrators, Multiplexors, Couplers Communication Processors and Protocol Convertors: Front-End Processor, ark Interface Module, Protocol Interchange, Switching Controls Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-2 ~~ . . QISV Letter Computer S stems, Di ital ansion/Accelerator Boards: Memo , Processor Geographic Information Systems (GIS), Mini/Main Frame Components ms, External, Data Communications Network Components: Adapter Cards, Bridges, Connectors, Expansion Modules/Ports, Hubs, LineDrivers, MSAUS, Routers, Transceivers (LAN, WAN Printers, Dot Matrix Printers, Ink'et inters, Laser inters, Pen Plotter nners, Document: Handheld, Desktop and Hi h Volume als and CRT's: Data Processin S stems s, For Com uters and Peri herals Chargers, For Computer and Peripheral Batteries pe Drive Cleaner puter Instructional Aids and Training Devices (Computer Based T os, CD-ROM) Printer Accessories and Supplies (Internal Consumables): Chemicals, Form Tractors, Inks and Cartridges, Sheet Feeders, Toner Cartridges, Wheels Includes Rec cled and Remanufactured Projection Devices: Interactive Conferencing Boards,LCD Panels, Data . ctors Testing Equipment for Computers (Does Not Include Tools or Tool Kits) ccounting/Financial: Bookkeeping, Billing and Invoicing, Budgeting, Payroll, Taxes Communications: Network and Linkin uter Aided Desi nand Vectorization . er and Hardware Support Programs Expert System ted , Mathematical and Mappin Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-3 ~~ . . QISV Letter h Volume Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-4 ~~ . . QISV Letter air Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-5 ~~ . . QISV Letter CATALOGUE INFORMATION NOTE to State Agencies: If this Qualified Information Systems Vendor provides consulting services and if the value of the consulting contract is reasonably foreseen to exceed $15,000.00, please refer to the Texas Government Code, Subtitle F, Chapter 2254. NOTES to all Eligible Purchasers: . Only Automated Information System (AIS) products and services may be purchased from this catalogue. Products not eligible for the catalogue purchase procedure must be edited out by the vendor. . Any telecommunication services that may be included within this catalogue shall only be procured by the General Services Commission. . Disregard any statement in this catalogue that states that prices and availability may change without notice. This catalogue is required to be kept current by the vendor. . Disregard any "proprietary, confidential, copyright (C), all rights reserved" statements in this catalogue. Eligible purchasers are allowed to make copies of this catalogue. . For services and products offered in this catalogue that have only one price, the price shown may be considered both the list price and state price. . Any terms and conditions in this catalogue that conflict with the Constitution or laws of the state of Texas shall not be enforceable and, therefore, will not be binding. . All AIS products and services offered in this catalogue conform and comply with all applicable standards adopted by the DIR; and all products conform to all state and federal requirements such as ANSI, FCC, NEMA, OSHA and UL standards. Vendor Affirmation By signing the GSC QISV Catalogue Purchasing Program application and submitting this catalogue through the program, the vendor has reviewed T AC 113.19, and agrees to comply with the rules as stated for the QISV program. The vendor will also: . Not give, offer to give, or intend to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with catalogue purchase transactions; . Not currently be delinquent in the payment of any franchise tax owed the State of Texas under Tax Code, Chapter 171 (go to "Certification of Franchise Tax Account Status" for verification); . Update their catalogue as needed to reflect changes in price and the availability of products or services offered. Use or disclosure of this information is subject to the restriction found on the title page of this document. June 7, 2004 1-6 ~~ . . (") lco l~l I 1 I I I II !;20 1.0 - o'<t o'<t - N 1.(0) 000 __ 0)_ '<t1.O g'<t - N 0 '<to O'<t -- - (")N O'<t 0 N 0 (")0 00 -- No O'<t 0 - ("'.I - ~ ell -0 '(3 ~ -0 Cii ell C 1il ..... ell 0 C ..... X- .- E .~ (/) ell 0)..... 0)';:; t) _ - t) .- (/) (/) 0) 2:: 0) >- 0) C (/) (/)UJ (/) 0 '00 >< -0 O)..c ell a:l C C 0. .0 a... ell o 0. ..... ..... ..c 0 ell C 0) o.~ 0) 0- > - C 0) (/) ell C 0) -0 0) 0) () .:; -0 ~ 0 0 ..... 0) ..... 0) ..... .E 0) E 0 t) 0. 0) 2:: (/) $: ~ (/) 0) t) 0) 0) t) N ell () C/) - '2: 1.0 ~ ..... '00 ~ .E1il 0) 0) 0) 0) ell ..... (/) 0) 0 Ol $: t)UJ t) C vi C Cii 0) '6 0) ell ell (/) C CI 0).2 (/) ..c > 0) >..c t) t) ell - C c:+-, 1-. ell -0 (ii () (/) E I'- E (/) - -- C C C "E ~ 0 0) ell 0 0) ell ..c :;:::::; ..... I :;:::::; E t) 0. ell ell t: - '<t $: ~ - N 'C (/) ell '6 t) "E (3 .0 0. ell (/) 0) 0) ell - ::J 0) ..... C 0 I ell C/) -0 t) - 0 0) 0 0) -0 0 :0 ell 0_ ..S!l ..... CO '(ii Ol 0. I'- > :J N ell 0) (/) ..... 0) ell t) $: '2: "E 0) ell (/) I 0) - C 0 ..c 0. Cii :;:::::; C - 0) C (/) 0) C (/) E 0 0) 0. :;:::::; (/) 'S ell 0) 0- C-o ell .- UJ - > >< I 0.0 X ..... I~I I I I IUJ IQ;J L - C ..c ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR THE NORTEL PHONE SYSTEM INCLUDING 24 HOURS PERDA Y 7 DAYS PER WEEK SUPPORT ON ALL EQUIPMENT LOCATED IN CITY OF DENTON FACILITIES AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION THROUGH THE CATALOG INFORMATION SERVICE VENDOR (CISV) CATALOG PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3378-ANNUAL MAINTENANCE FOR NORTEL PHONE SYSTEM AWARDED TO VERIZON SOUTHWEST IN THE AMOUNT OF $44,092.85). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3378 Verizon Southwest $44,092.85 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY. ~ 5-0RD-File 3378 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit, 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of continued software maintenance, and services for the LaserFiche Document Imaging System currently being used by the City of Denton from VP Imaging, as awarded by the State of Texas General Services Commission through the Catalog Information Services Vendor (CISV), formerly known as Qualified Information Services Vendor (QISV), providing for the expenditure of funds therefore; and providing an effective date (File 3381-Purchase of Annual Maintenance for LaserFiche Document Imaging System awarded to VP Imaging, in the amount of $42,848.20). BACKGROUND The initial document imaging system was installed as a pilot project to meet the imaging needs for the City Secretary's Office and the Legal Department. After successful implementations in both of these departments, an Imaging Committee was established to define the needs and set the priority for future imaging projects. The committee was made up of staff members from the departments that had expressed a need for imaging. Based on the Imaging Committee's recommendations, the system was enhanced and imaging has now been successfully deployed in multiple departments throughout the City. The imaging projects include many solutions integrated with GIS, the Internet, and the City's Intranet. To maximize the benefits achieved from the recent Street Paving Project, the information was linked using the GIS, CarteGraph, and the LaserFiche Imaging Systems. The survey resulted in a large amount of data that included over 950,000 pictures, Ground Penetrating Radar (GPR) data, and individual video clips of every 20 feet of city streets. The digital images were loaded into the LaserFiche Imaging System and are now easily managed. The GIS system links all of the data to the exact location on the interactive map, and the Imaging System displays the corresponding pictures. The system provides maximum return of the project investments, has improved employee productivity by easing access to the data, and helps staff to make better- informed decisions. This system ensures records security, eliminates time-consuming document searches, cuts storage space requirements, and meets regulatory compliance. The project has streamlined operations while providing a more cost-effective means of serving our citizens and internal departments. Agenda Information Sheet September 20, 2005 Page 2 The City Secretary's Office has imagined thousands of documents making them accessible. Among the documents imaged were City Council minutes, ordinances and resolutions going back to the 1900's, and cemetery records and abstracts from the 1800's. The City of Denton's Property Tax Rolls dating back to the 1950's, all Property Tax, Hotel Occupancy Tax, Investment records, tax bankruptcy files, and the City's mowing and paving liens are now in digital format. The Tax project saved years of records from destruction and hundreds of square feet of storage space. By using the LaserFiche System, the Tax Office provides the Delinquent Tax Attorney immediate access to files through the Internet. The Human Resources Department has implemented the LaserFiche Imaging System and is now a paperless operation. By integrating the Imaging System, the online application process, and the Internet/intranet applications, the Human Resource Department has developed a user-friendly process that dramatically increased the department's efficiency and effectiveness. The Human Resources Department now receives an average of 475 applications per month from the online application service out of the total average of 628 applications per month (76% of all applications come in from the online process). This request covers the software license maintenance and services for the LaserFiche Document Imaging solution that is being used by the City of Denton for applications in the Police Department, Fire Department, Electric Administration, Utility Administration, City Secretary's Office, Engineering, Tax, Municipal Court, Facilities Management, Legal, and Human Resources. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes and access to knowledge and support resources. RECOMMENDA TION Award to VP Imaging in the amount of $42,848.20. PRINCIPAL PLACE OF BUSINESS VP Imaging Lubbock, Texas ESTIMA TED SCHEDULE OF PROJECT Annual software license maintenance and services will cover FY 2005-06 for the LaserFiche Document Imaging Application. Contract period is October 25, 2005 through October 25, 2006. Agenda Information Sheet September 20, 2005 Page 3 PRIOR ACTIONIREVIEW Phase I: The trial and selection process of using the LaserFiche Document Imaging Application for the City of Denton started on April 13, 2000 Purchase Order 04969. Phase II: On January 8, 2002, the City Council approved Purchase Order 102246 to VP Imaging for initial deployment of LaserFiche document imaging to Human Resources, Fire, Police, Legal, Engineering, Tax, and Utilities. Phase III: On November 5, 2002, the City Council approved File 2909 to VP Imaging for upgrades and enhancements to the LaserFiche Imaging System for Human Resources, Fire, Police, Legal, Engineering, Municipal Court, City Manager's Office, City Secretary's Office, and Utilities, as recommended by the Imaging Committee. On October 21, 2003, the City Council approved Purchase Order 113926 in the amount of $40,265 to VP Imaging for software maintenance and services for FY 2003-04. On October 12, 2004, the City Council approved Purchase Order 119418 in the amount of $41,731.50 to VP Imaging for software maintenance and services for FY 2004-06. FISCAL INFORMATION Funding for this purchase order is budgeted in the 2005-06 Technology Services Operating Budget account number 830500.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote and CISV Certification Attachment 2: CISV Catalog Pricing Attachment 3: Cost Analysis Attachment 1 Ooclit:!Nw@ solut oos QUOTE VP Imaging, Inc. PO Box 94011 Lubbock, Texas 79493 806-784-0055 FAX 806-771-0925 Quote# Date: 31247 8/22/2005 To: Mary Collins VPI Contact: Cody Bettis Customer ID: Denton Note: All quotes expire 30 days from above date. Please call your VPI contact for any changes. City of Denton 215 E. McKinney Street Denton, Texas 76201 Qty Item Descriptions Unit Pr Total 1 VPL Service Contract Agreement for one year. VP Imaging is your $ 36,048.20 $ 36,048.20 Laserfiche provider and front line support service center. Laserfiche Renewal Support for one year, October 25,2005 through October 25, 2006. This includes LaserFiche service packs and point upgrades. VP Imaging Technical Support, one year, unlimited support via phone, fax, email, M-F, 8AM-5PM, CST, Call toll free (800) 353- 2320. LaserFiche LSAP for the following items: LF Enterprise Server Software for SQL system, LF Enterprise Full user 50, LF Enterprise Retrieval user 100, LF Enterprise WebLink, LF Toolkit, LF CD Publisher, LF Snapshot Site, LF Email Site, LF Audit-Trail, DocuNav ToolBar Site, DocuNav AutoFile 4, Court customize software, Zone Capture 80 VPIYR VP Imaging On-Site Training, Technical Support and/or Scanner $ 85.00 $ 6,800.00 Support, one year, @ $85.00per hour plus parts. Hours to be divided as needed. $ - $ - $ - $ - $ - $ - ATTENTION: Quote includes ClSV pricing. VP Imaging, Inc is a ClSV approved vendor. Subtotal $ 42,848.20 VID#1752738222400 Review this quote and once approved, please attach your purchase order Tax and we will process it. We look forward to working with you! Freight $ Thank you, Nadine. - Total $ 42,848.20 ~. . .,' . .tttac~~nt 2 . . . ... I . .... . .-1 . . I. . . . . ~ . ~ . . .. .- - - - . . . . ~ . . .. . 1 1 . . 1 . .. I . . . . 1 . . . I . . . . . . . 1 . , r . ~..: I . I .. 1 . - . . . . .. . . . . . 1 , .. -. . . . III . . I I . . . . I . . . . .- r - . . . . . ~. .;.~ . . . . . f!i .... - .. . . . ~ . . . . ~ I . . t . I . . . . . . I I . II · . I .. . . . DEi . f4 I I . . 1 . I I . . 1 .. . 1 I . . . .. II . r JIi ,:.: . 11 . "I . . . . .. . .. . .. .- _I . . 1 . .. I . . . . .J . . r . J.: . 1 1 ... 1'" ~ r . I . L1 .. .. .:-1 . r . . . . .~. . . . . I - . . . i --J- . . .. . ~ I - .i... · I - .. · · -I. ..... . . :. . . . . r . ~ - ... . .- . . - . . . . . .. - . . . ~ .. . . y - --: . .. . I ... . . -,= . -. . II. . I · . .. I .. . . .. .} -~ 1 I i 1 IL . . .~ . I II I · . . - . 1 . . .1 . ~ ~J I aN a"<t N ~ ~~I a~ a"<t ~ I ~ ~11 cry N_ 00 a"<t ~ C')a 00 N 0_ 00 ~ C') I NO ~8 86 NN C') ..t o o N J:: Ol C :J Ol - 0 E .g E t-- rouN o..~a Ol W 0 o _N _ c c ro .Q .- Ol--o Q)~Q) ~~:g c.~ ro roEOl >--0 ~ ro<(~ ~ ~ Q) u'- u Ol~iE (f)-a ~:J_ y) ._ >< l..... o ro Ol OlI-~ :6 t- ~ :5El2 .- 0 5: _ ~ -0 roo Ol .9- Ol t .~ J:: j9 C +-' (/) :J -0 _ 2 c ~ _ ro .0' g> +oi- l......- C 0... ~ Ol Ol ~ E c c Ol ._'- Ol OlOlro ro c c E W ro c -2 o Ol Ol +,..c~ ~ .g- ~ (i ~ &l Ol _'0 Ol(/)Olro o ro .= LL _2LL (/)0 Ola ~a :J - _0 roo OlC') LL .l!l - c Ol E J:: U ro ~ -0 -0 <( ~8 roO 1;6 o~ (f) ~ .E: 11 Ol J:: U if Ol (/) ro --l (/) . _ Ol U c .~'(jj o ro ~J:: o..u 5: :; Olo... c-o ~ c .E ro (/) -- Ol- -0 e '5 ~ eo... 0.. -0 cii c .~ ro- c 0::: :J :r: 0 u -g~ ro - - Ol x- ro..Q I- ~ o ro -0... .l!l (/) c- Ol c E El Ol u u u ~~ J:: Ol C C Ol c Ol C -0 ro :J- (30... C - .- Ol (/) .~ 150 Olo... "e l.....- 0..2 ~~ o N >; - ~ C ro Ol ~ ~..Q :J:.:J o .c o o o I 1 t 1 - ui -0 Ol Ol C Ol C 'm ro .~ N Ol ~ 'C o .~ -0 C ro (/) (/) :J u .!!1 -0 .8 .l!l Ol Ol E Ol Ol =!:! E E o u C Ol o C ~ "6> ~ ~ 0.. .~ ~<( 1 ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF CONTINUED SOFTWARE MAINTENANCE, AND SERVICES FOR THE LASERFICHE DOCUMENT IMAGING SYSTEM CURRENTLY BEING USED BY THE CITY OF DENTON FROM VP IMAGING, AS AWARDED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION THROUGH THE CATALOG INFORMATION SERVICES VENDOR (CISV), FORMERLY KNOWN AS QUALIFIED INFORMATION SERVICES VENDOR (QISV), PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3381-PURCHASE OF ANNUAL MAINTENANCE FOR LASERFICHE DOCUMENT IMAGING SYSTEM AWARDED TO VP IMAGING, IN THE AMOUNT OF $42,848.20). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3381 VP Imaging $42,848.20 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY ~JRD-3381 ~$- AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance authorizing the execution of change order two to a contract for lease purchase financing of PC's, monitors, and peripheral equipment for Utility and General Government (with the exception of Public Safety) Departments between the City of Denton and Dell Government Leasing and Finance; providing for an increase in the time period and an increase in the annual lease payment amount; and providing for the expenditure of funds therefore; and providing an effective date (File 3110-Dell Government Leasing and Finance awarded in the amount of $1,056,923.70, change order one in the amount of $331,241.64 and change order two in the amount of $116,626.32 for a total of $1,504,791.66). CHANGE ORDER INFORMA TION With the pending release of a new Microsoft Windows operating system and no hardware limitations impeding present city technology needs, it is in the city's best interest to extend it's current lease for an additional year. Extending the lease an additional year will allow time for the new operating system to be released and to be fully tested before deploying it within the city. This will allow for the operating system and hardware lease to remain on the same upgrade cycle and eliminate the need for a mid lease operating system upgrade and the licensing costs associated with an upgrade. The original three-year Utility and General Government PC lease contract began in February 2003 with a lease payment of $352,307.90 per year for a total of $1,056,923.70. Change order one was for 197 Public Safety PC's approved in November 2004, and was an extension of the original lease. The Public Safety portion increased the annual lease payment by $110,413.88 for a three-year total of $331,241.64. Change order two is for a one-year extension to the Utility and General Government PC lease contract that will add an additional $116,626.32 to the total contract amount bringing the total to $1,504,791.66. This additional one-year lease will end in March 2007. This purchase order is for lease payments to extend the current lease an additional 12 months. This extension covers 525 Dell Optiplex GX260 desktop PCs, 80 Dell Latitude C640 notebook PCs, software, peripherals, and services currently being used by the Utility and General Government Departments leased equipment expiring in April 2006. The master lease is through the State of Texas Building and Procurement Commission Department of Information Resources Cooperative Purchasing Agreement. The leasing rate is negotiated by the State of Texas, which makes adding to this existing lease more economical than pursuing a lease on the open market. This allows the City of Denton to take advantage of the leasing power of the State of Texas Building and Procurement Commission. Agenda Information Sheet September 20, 2005 Page 2 RECOMMENDA TION Approval of change order two for twelve monthly payments in the amount of $9,718.86 each for a total cost of $116,626.32. PRINCIPAL PLACE OF BUSINESS Dell Government Leasing and Finance Round Rock, Texas ESTIMA TED SCHEDULE OF PROJECT The lease renewal for the 525 desktop PC's and 80 notebook PC's with software, peripherals and services will begin April 1, 2006. FISCAL INFORMATION Funding is budgeted from Technology Services account 830500.7802. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Dell Government Leasing and Finance Lease Renewal Proposal City of Denton Schedule 11066062-01 8-10-05 Dell Government Leasing & Finance III is pleased to provide the following Purchase/Renewal Options for equipment listed on the above referenced lease schedules. Effective 10/31/05 ("Effective Date") Pav# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Date 1-Nov-2005 1-Dec-2005 1-Jan-2006 1-Feb-2006 1-Mar-2006 1-Apr-2006 1-May-2006 1-Jun-2006 1-Jul-2006 1-Aug-2006 1-Sep-2006 1-0ct-2006 1-Nov-2006 1-Dec-2006 1-Jan-2007 1-Feb-2007 1-Mar-2007 Payment 0.00 0.00 0.00 0.00 0.00 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 9,718.86 All pricing included in this quote is effective on the noted Effective Date, and assumes all rental payments, late fees, applicable sales and property taxes are made to that date. New rental payment will start on the noted Effective/Rental Start Date. Payments do not include any applicable sales tax. All payment and other obligations of the Lessee under the Lease must be satisfied and there must be no continuing defaults there under on the Effective Date. If Lessee fails to pay the Purchase/Renewal price for the Equipment and applicable taxes within 45 days of invoicing, Lessee shall be liable for additional monthly rentals (in the same amount as currently due under the Lease) for each month (full or partial) from the Effective Date until the Purchase/Renewal price and all such additional monthly rentals are paid in full. All advanced payments/deposits are included in the purchase price, and refunds will not be given. Purchase of the Equipment will be without representations or warranties, express or implied, by Dell Government Leasing & Finance III, which sells the Equipment on an "AS IS, WHERE IS" basis. Please indicate your acceptance by signing below. This quote will remain valid through September 30, 2005. If Lessee's signed acceptance is not received as of such date, the Lease, including Lessee's obligation to pay rent there under, will remain in full force and effect. Regards, Todd Stevenson Agreed & Accepted: City of Denton By: Signature: Title: Date: ORDINANCE NO. AN ORDINANCE AUTHORIZING THE EXECUTION OF CHANGE ORDER TWO TO A CONTRACT FOR LEASE PURCHASE FINANCING OF PC'S, MONITORS, AND PERIPHERAL EQUIPMENT FOR UTILITY AND GENERAL GOVERNMENT (WITH THE EXCEPTION OF PUBLIC SAFETY) DEPARTMENTS BETWEEN THE CITY OF DENTON AND DELL GOVERNMENT LEASING AND FINANCE; PROVIDING FOR AN INCREASE IN THE TIME PERIOD AND AN INCREASE IN THE ANNUAL LEASE PAYMENT AMOUNT; AND PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 311 O-DELL GOVERNMENT LEASING AND FINANCE AWARDED IN THE AMOUNT OF $1,056,923.70, CHANGE ORDER ONE IN THE AMOUNT OF $331,241.64 AND CHANGE ORDER TWO IN THE AMOUNT OF $116,626.32 FORA TOTAL OF $1,504,791.66). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, on February 4,2003 the City awarded a 36 Month Master Lease Agreement for PC's, Monitors, Laptop, and Peripheral Equipment to Dell Government Leasing and Finance in the amount of$I,056,923.70 and on November 18, 2003 the City Council approved change order one in the amount of $331,241.64; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Manager having recommend to the Council that a change order be authorized to amend such lease agreement with respect to the scope and price and said change order being in compliance with the requirements of Chapter 252 of the Local Government Code, exempting such purchases from the competitive bid process; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Change order two increasing the amount of the lease agreement between the City and Dell Government Leasing and Finance, a copy of which is on file in the office of the Purchasing Agent, in the amount of One Hundred Sixteen Thousand Six Hundred Twenty Six and 32/100 Dollars ($116,626.32), is hereby approved and the expenditure of funds therefore is hereby authorized. The master lease annual amount is amended to read $1,504,791.66). SECTION 2. By the acceptance and approval of change order two to the master lease on file in the office of the Purchasing Agent, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the change order two wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be substantially the same as the documents on file in the office of the Purchasing Agent; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the change order two, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the listed items set forth in the change order two, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the purchase orders issued by the City or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this _, day of 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 3-0RD-File 3110 Change Order Two AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose III SUBJECT Consider adoption of an Ordinance awarding a contract approving the expenditure of funds for the purchase of Mitsubishi 80kV A UPS and distribution system 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 3379-Mitsubishi 80kV A UPS and distribution system awarded to Data Com Power, Inc., in the amount of $61,10 1). FILE INFORMATION The UPS and distribution system will support mISSIOn critical equipment used by Police Dispatch Operations Center. Systems supported by UPS include Radio Communications, Public Safety Visionair Servers, and the Police CAD Dispatch Equipment. This equipment was selected because the Mitsubishi 80kV A UPS Model 2033D UPS provides a ratio of 1: 1 of engine generator loading to UPS power output using low reflected input current THD (Total Harmonic Distortion) technology and is capable of paralleling with existing Mitsubishi 50kV A Model 2033D UPS. Data Com Power, Inc is the only supplier in the state of Texas and Mitsubishi will not sell direct. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Data Com Power, Inc., in the amount of $61,101. PRINCIPAL PLACE OF BUSINESS Data Com Power, Inc. Piano, Texas ESTIMA TED SCHEDULE OF PROJECT Installation of UPS and distribution system will be completed by December 31,2005. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the Technology Services Bond Fund and in the Facilities Management Special Projects Bond Fund. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter l-AIS-File 3379 Attachment 1 DataCom POWBr, Inc. Critical Power and Environmental Specialists City of Denton UPS System Installation Aug ust 25, 2005 Proposal P-052448 Provide all engineering, project management, and labor to remove old Exide UPS and install a new Mitsubishi 80kVA UPS system. This unit will be used to backup the existing computer room loads which will also include some Police department loads: 1. Provide and connect new Mitsubishi 80kVA, Three Phase UPS with external battery system rated for 14 minutes @ full-load, includes remote status alarm panel and start up. $39,338 $480 2. Provide new UPS Monitoring Package (Netcom). 3. Provide removal of Exide UPS and battery system from building. Then provide freight and inside delivery of Mitsubishi UPS and batteries. $4,1 00 4. Disconnect Exide UPS. Provide new breaker and feeds to new UPS and maintenance bypass panel. Provide and install new output panel to distribute the output, allowing a circuit to go to the Police department equipment room and a circuit to reefed the existing PDU, plus feed the static transfer switch feeding newer PDU. Provide feeds from existing output circuits to new output panel. $17,183 5. Clean premises as they were when project began. TOTAL PRICE FOR UPS PROJECT $61,101 Payment terms are net 30 days after shipment. Pricing is exclusive of any applicable Federal, State or Local Taxes. 3020 Legacy Dr. #100-380 . Plana, Texas. 75023-8321 . (972)491-0987 . (972)491-0718 Fax e-mail: ChrisHowell@DataComPower.com.wwwDataComPower.com Tulsa (918)477-9400 . Oklahoma City (405)917-5100 Attachment 2 Datacom Power, Inc. Steve Blackman 3020 Legacy Drive Suite 100-380 Piano, TX 75023-8321 Dear Steve: Your firm has been selected as a vendor providing Mitsubishi 80kV A Model 2033D UPS providing a ratio of 1:1 of engine generator loading to UPS power output using low reflected input current THD (Total Harmonic Distortion) technology and capable of paralleling with existing Mitsubishi 50kVA Model2033D UPS. You have indicated to us that you are the only existing vendor of this/these commodities. Due to statutory requirements, unless you are the "single or sole source" of this/these commodities we must bid their procurement competitively. Single source, in this case, means that you are the only company that can supply us with this commodity. We are required to confirm this status with you. Please respond as necessary to the following questions and return this sheet to us via U.S. Mail or fax. Call if you have any questions. 1. Are you the sole or single source vendor for the commodities named above? l~Yes No 2. Is there any other vendor that offers this service? _Yes ;/ No If you are not the single source vendor of this service please list the other vendors we need to contact for bids: If you answered questions above as a single source vendor please sign below to certify that you are the single source of this material and return to: Tom Shaw, Purchasing Agent 901 B Texas Street Denton, Texas 76209 Or Fax to (940) 349-7302 I certify th:_~e are Ih~O.. uu~r~ce o'-tlJ~e"boo/ve I' led commodilyor commodities. . Signed: Title: {/(~ e ~.../>,.~/ (Company Official) Print Name:-00v-e /5t";AC,k'.lMU//) Date: gA4/"O-5"' "" / ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF MITSUBISHI 80KV A UPS AND DISTRIBUTION SYSTEM 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 3379-MITSUBISHI 80KV A UPS AND DISTRIBUTION SYSTEM AWARDED TO DATA COM POWER, INC., IN THE AMOUNT OF $61,101). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3379 Data Com Power, Inc. $61,101 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY ~JRD-3379 ~-er:- AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Millennium Library System and associated hardware and software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3371-Purchase of Annual Maintenance for Millennium Library System awarded to Innovative Interfaces, Inc. in the amount of $33,069). FILE INFORMATION The City of Denton uses the III Millennium software for maintaining Library patron accounts, managing the Library collection, and processing fines and fees. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. Innovative Interfaces, Inc. is the sole manufacturer and vendor of the Millennium Library System and thus the sole source for providing maintenance services for the software of this system. Section 252.022 of the Locat Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Innovative Interfaces, Inc. in the amount of $33,069. PRINCIPAL PLACE OF BUSINESS Innovative Interfaces, Inc. Emeryville, CA ESTIMA TED SCHEDULE OF PROJECT Annual Maintenance is being paid for November 1, 2005 through October 31,2006. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2005-06 Technology Services Operating Account 830400.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote and Sole Source Letter Attachment 2: Cost Analysis l-AIS-File 3371 . . .. - ~ 1.1 .... . I · . . . . ~. .... .. . .l r\I. · - rI' .,~. . ... ...~. .. - .~.. -..-.1 · . . ... ( . . .. ~ . . I J 1 . ~. : ...:I.. ..;~i. " II 1-:"-, o. I. ~.' . . . : . . .. I .1 . :. . .. . . . . ~1. . . :. .. I · I . . . .... . . . . . II: · . . I ... I . I . . . .. . rr. . I r . I ......... I . :-:1( .;- . . 0. _. I ~ . .. ~ . I.... .:'. ~ I . I I . . . . . . .... I I . . .. I. ." .J ~ ~ . ~ il~ II. :~ I . . . . . . . . . . .j";. I . . . .~ ~ .. 1:1 . . ... ~=-:- · i-. I . . I I 1. · t. ..... . I ~ ..., :. I I · -===== . . . . . ~ . I . . .. . I . 1 . . 'I I . I ,: I 1- -- :.... . . i:1 .. . ~ . . . . ... . . . .. . .1 :.: If. . N .... C Q) E ..c u ro ~ ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE MILLENNIUM LIBRARY SYSTEM AND ASSOCIATED HARDW ARE AND SOFTW ARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3371-PURCHASE OF ANNUAL MAINTENANCE FOR MILLENNIUM LIBRARY SYSTEM AWARDED TO INNOVATIVE INTERFACES, INC. IN THE AMOUNT OF $33,069). 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 3371 Innovative Interfaces, Inc. $33,069 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. 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 ~~ 4-ORD-File 3371 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 Questions concerning this acquisition may be directed to Alex Pettit 349-8595 DEPARTMENT: Materials Management ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle Relational Database Software 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 3374- Purchase of Software Maintenance for Oracle Relational Database Software awarded to Oracle USA, Inc. in the amount of $35,860). FILE INFORMATION In 1998, a Focus Committee was formed to review and select a new financial reporting system and human resources management system. This new software would replace an eighteen-year old mainframe system. Twelve representatives from Utilities, Treasury, Purchasing and Warehouse, Human Resources, Accounting and Budget, and other end-user departments participated in the evaluation process. The Committee met regularly establishing criteria for selection, identifying possible product solutions and evaluating each potential system provider. After product demonstrations and initial selection of four possible solutions, site visits were made to similar municipal users. The Committee unanimously made the final selection of JD Edwards on September 24, 1999. The City of Denton uses the Oracle Relational Database software package for the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly lD. Edwards OneWorld) System)). This system supports the operation of Accounting and Finance, Human Resources, Payroll, Procurement, and Warehouse. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. Oracle USA, Inc. is the sole source vendor for Oracle Relational Database Software maintenance. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Oracle USA, Inc. in the amount of $35,860. Agenda Information Sheet September 20, 2005 Page 2 PRINCIPAL PLACE OF BUSINESS Oracle USA, Inc. Redwood Shores, CA ESTIMA TED SCHEDULE OF PROJECT Maintenance is being paid for October 28, 2005 through October 27, 2006. FISCAL INFORMATION Funding for this item is budgeted in the FY2005-06 Technology Services Operating Account 830400.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter Attachment 3: Cost Analysis l-AIS-File 3374 Attachment 1 ORACLE' 25-Jul-05 Anthony Caranna* CITY OF DENTON 901 B TEXAS STREET DENTON TX 76201 United States Re: Service Renewal # 1877837 Dear Anthony Caranna*, Please find attached a quotation for the above service renewal. The technical support services and benefits you are receiving will expire, or have expired, on 27-0ct-05. This quotation is provided pursuant to the terms and conditions of the valid license agreement that you executed when you acquired technical support from Oracle or an Oracle authorized Reseller for the licenses referenced on the above service renewal; your service order under this quotation is subject to Oracle's acceptance. The new service level, named Software Update License & Support, reflects the combination of Software Updates and Product Support service levels. All licenses on which you previously had both Software Updates and Product Support have been quoted on this renewal with Software Update License & Support. All licenses on which you previously had only Software Updates have been quoted on this renewal with Software Updates. Your access and entitlement to support services are unaffected. For more detailed information on this change, please refer to http://www.oracle.com/support/standard.html. In order to complete this service renewal and to ensure that there is no interruption to your technical support, please accept this service renewal in accordance with the attached Acceptance Details on or before 28-Sep-05. Once ordered, technical support for the support period defined below is non-cancelable and the related fees are non-refundable. If the pre-tax value of this renewal is $2000 or less, pre-payment in the form of a check or credit card must be received. Purchase orders are no longer acceptable for these transactions. An invoice, including applicable sales tax, GST, or VAT (collectively referred to as "Tax"), will only be issued upon receipt of acceptance. If your company is tax exempt, a copy of your tax exemption certificate must be included with your purchase order or other form of payment. Oracle's technical support policies govern the terms of your technical support and are subject to change in accordance with its terms. The most current technical support policies, including Oracle's Reinstatement Policy, can be found on the web at http://www.oracle.com/support/policies.html. Customers who allow technical support to lapse and later wish to reactivate it will be subject to Oracle's then current Reinstatement Policy. Applicable reinstatement fees may apply in addition to the annual technical support fees. Oracle provides information and notices about technical support via e-mail. Accordingly, it is important that you provide updated e-mail information with your order to ensure that you receive all communication and notices from us. Please note that as part of a corporate restructuring associated with our recent acquisition of PeopleSoft, Inc., Oracle Corporation has transferred substantially all of its U.S. based operations, including our contracts with our customers to, Oracle USA, Inc., effective March 1, 2005. Page 1 of 6 Contract Number: 1877837 ORACLE' Accordingly, Oracle USA, Inc., is now responsible for the performance of all of these obligations under these contracts. Correspondence and invoices relating to these contracts will reflect the name of Oracle USA, Inc. Likewise, any correspondence and payments from you (including the vendor specification on any tax exemption certificates) should be address to Oracle USA, Inc. We expect that Oracle's addresses and your contacts will remain unchanged. I would like to take this opportunity to thank you for your continued business with Oracle. If you require further information, please do not hesitate to contact me at your earliest convenience. Regards, Sara Phillips Oracle Support Services E-mail: sara.jordan@oracle.com Tel.: 7033640017 Fax: 719 757 4303 Page 2 of 6 Contract Number: 1877837 ORACLE. Oracle Service Renewal Quotation Date: 25-Jul-05 Anthony Caranna* CITY OF DENTON 901 B TEXAS STREET DENTON TX 76201 United States Tel.: Fax: E-mail: 940349-7249 940 349-8533 Anthony.Caranna@cityofdenton.com THIS QUOTATION IS VALID THROUGH 27-0ct-05. PLEASE DO NOT CHANGE ANY OF THE INFORMATION BELOW WHEN SUBMITTING YOUR SERVICE RENEWAL. ORDERS IN WHICH THE SERVICE DETAILS HAVE BEEN CHANGED ARE NOT VALID AND YOUR ORDER WILL NOT BE PROCESSED. If a change to the information provided below is required, please contact me and an updated service renewal quote will be provided to you in accordance with Oracle's technical support policies located at http://www.oracle.com/support/policies.html. The service level Software Update License & Support reflects the combination of Software Updates and Product Support. For more detailed information on this change, please refer to http://www.oracle.com/support/standard.html. Service level: Software Update License & Support Product Description CSI # Qty Oracle Database Enterprise Edition - 13995712 5 Processor Perpetual Oracle Database Enterprise Edition - 13995712 Processor Perpetual Internet Developer Suite - Narned 13995712 User Plus Perpetual Page 3 of 6 End Date: 27-0ct-06 License License Start Date Final Price Metric Level/Type FULL USE 28-0ct-05 26,400.00 FULL USE 28-0ct-05 8,800.00 FULL USE 28-0ct-05 660.00 Total Amount: USD 35,860.00 Plus Applicable Tax Contract Number: 1877837 ORACLE. Acceptance Details Oracle processes service renewal orders after receipt of a purchase order or other acceptable form of payment such as a check or credit card for the total fees specified on the Oracle Service Renewal. PURCHASE ORDER. CHECK. CREDIT CARD CONFIRMATION Purchase Order If accepting your service renewal by Purchase Order, your Purchase Order must include the following: Service Renewal #: Term of Service: Local Tax, if applicable 1877837 28-0ct-05 to 27-0ct-06 The terms of your agreement with Oracle and this order supersede the terms of a Purchase Order. Please e-mail or fax your Purchase Order to: Attn: Fax: E-mail: Customer: From: Sara Phillips Oracle Support Services 7197574303 sara .jordan@oracle.com CITY OF DENTON Anthony Caranna* Check If accepting your service renewal by Check, please include the following information: Service Renewal #: Term of Service: Local Tax, if applicable 1877837 28-0ct-05 to 27-0ct-06 Credit Card If accepting your service renewal by Credit Card, please complete the sections below and fax this information to: Attn: Fax: E-mail: Customer: From: Page 4 of 6 Sara Phillips Oracle Support Services 7197574303 sara .jordan@oracle.com CITY OF DENTON Anthony Caranna* Contract Number: 1877837 ORACLE' Credit Card Number Expiration Date Authorized Signature Print Name PAYMENT TERMS Payment Terms for all fees payable to Oracle are 30 NET and will be invoiced annually in advance. ADDITIONAL ORACLE TERMS There are no additional terms. Page 5 of 6 Contract Number: 1877837 ORACLE. Customer Details Please verify and update the following information to enable us to provide an efficient and timely service to your company. If changes are required, please e-mail or fax the updated information to: Attention: E-mail: Fax: Tel.: Company Name: Service Renewal #: For Quotation Contact: Company: Address: Tel.: Fax: E-mail: For Invoice Contact: Company: Address: Tel.: Fax: E-mail: Page 6 of 6 Sara Phillips Oracle Support Services sara .jordan@oracle.com 7197574303 7033640017 CITY OF DENTON 1877837 Anthony Caranna* CITY OF DENTON 901 B TEXAS STREET DENTON TX 76201 United States 940 349-7249 940 349-8533 Anthony. Ca ra nna@cityofdenton.com ACCOUNTS PAYABLE CITY OF DENTON 215 EAST MCKINNEY STREET DENTON TX 76201 United States Contract Number: 1877837 08/15/05 11:41 FAX 141 002 Attachment 2 Oracle USA, Inc. Sara Phillips 1900 Oracle Way Reston, VA 20190 Dear Sara: Your firm has been selected as a vendor providing annual maintenance and continued vendor support of the Oracle Relational Database Management System and associated software modules. You have indicated to us that you are the. only existing vendor of this/these commodities. Due to statutory requirements, unless you are the "single or sole source" of this/these commodities we must bid their procurement competitively. Single source, in this case; means that you are the only company that can supply us with this commodity. We are required to confirm this status with you. Please respond as necessary to the following ;questions and return this sheet to us via U.S. Mail or fax. Call if you have any questions.' 1. Are you the sole or single source vendor for the commodities named above? ~Yes No 2. Is there any other vendor that offers this service? _Yes .; No If you are not the single source vendor of this service please list the other vendors we need to contact for bids: , I I I.. ~- 11~~"--"'>.:.~.Jm.i} v.._ ~ -!:l!I=~ r 1 ~k~~- If you answered questions, above as a single source vendor please sign below to certify that you are the single source of this material and return to: Tom Shaw, Purchasing Agent 901 B Texas Street : i Denton, Texas 76209 I, Or Fax to (940) 349-7302 I certify that we are the sole source of the above listed commodity or commodities. Signed: rivAl / Ill. l%'1Ir) Title: 0~/XJrf SO/(J:S Ref) / . (Co pany Official) ( Print Name: Sora' fh;/J,M Date: Aug" 15.' 2C(}5 , <DO e ~€t L[)L[) 8("') N L[)a 00 _0 "<t - a<D 0("') N "<to 00 _0 ("') - aN 0("') N ("')0 00 _0 N - 000 a~ en N ~ r-+- t NO '2: 0 00 a. _0 Ol a. ~ "-- C/l :J 8~ Ol C/l N :iJr-+- c .2 08 :5 ro _0 -0 .2 o - Ol 0"- C/l a. 0 ~ :J a. N Ol r- f-- ro 0 0 5 Iii 0 0 ro () m 0 "" "<t- Ol "5 Ol >- Ol Ol <D U -0 ~ 00 ~f- c ro ro IDO C/l- :5 c Ol 0 -0 Ol- C/l ~ Ol c Cl C/l Ol 2 a. Qj ~ :J ~ J:: C/l .2 () Ol :J :.c ro '0 8 5 5 Qj 0 C/l iI:' --0 0 ..0 "<t ~ C/l E <D ro <17 5 :J Ol-O 0 C ~UJ >. Qj ~o ro Cl C/l' a. ~ Ol- ~ Ol 0 .2 ("') ro - C/l C/l 1:: Cl~ Ol C 0 "~ ~ ro Ol a. C/l :J -0 E a. c C a. :J Ol :J J:: C/l .2 ~ () ro .8 - :; Iii ~ Ol :J ~ ro () c c c '0 5 0 ro ro iI:' () C/l- a. 0 -0 ro C/l Ol Ol () - C/l X Ol ro c "" :J C/l C Ol Cl ro c "2 :J Ol <(0 ..0 t; -0 .~ .0 c C/l"<t ro , Ol ~ Cl ro C/l c '0 ro Ol J:: 'w 0 ~ () c C/l Ol ro Ol ~:5 ~ a. Qj c -0 2- 0 Ol ::;<( ~ C/l ro a.CI) .2 c -9 E> a. 0 0 O2 a. ~ C/l O[]J ro C/l E - C/l "5 Ol .g C C/l C/l () 0 Ol e () Ol C/l C () 0 [L Ol ~f- ro :iJ8 () .8 '2: J:: () C/l- ~ 0_ Ol :.c ~~ C/l 5 Ol c () Ol~ OCl) '2: LL ""LL Ol - rlc:> C/l '0 = .....J 1:: -0 a. _ 0 <( g-~r- a. 0 a. Ol ~Qj :J ro 0 C/l 0_ ~ C/l Qj 5 "<t :J iI:' 00 'x C E 0 :J ~ 0 CI) ro 00 rg -0 :; :J C () () ro c 'c 2 0 Ol o f-- "~ <( -0 C CI) Ol 0 > C/l ~ 2 c .2 Ol []J ~ C/l - >- -0 0 ro .. Ola a. C/l ()~ Ol c ro Ol () "~ g. Qj c ro Co ~ 5 c Ol Ol Ol a. _ C u E () Qj ~ o ~ J:: 'iij 0 00 I- 2 ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE ORACLE RELATIONAL DATABASE SOFTWARE 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 3374-PURCHASE OF SOFTWARE MAINTENANCE FOR ORACLE RELATIONAL DATABASE SOFTWARE AWARDED TO ORACLE USA, INC. IN THE AMOUNT OF $35,860). 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 3374 Oracle Corporation $35,860 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: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 5-ORD-File 3374 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld)) 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 3372-Purchase of Annual Maintenance for Oracle Enterprise One Software Package awarded to Oracle USA, Inc. in the amount of $89,900). FILE INFORMATION In 1998, a Focus Committee was formed to review and select a new financial reporting system and human resources management system. This new software would replace an eighteen-year old mainframe system. Twelve representatives from Utilities, Treasury, Purchasing and Warehouse, Human Resources, Accounting and Budget, and other end-user departments participated in the evaluation process. The Committee met regularly establishing criteria for selection, identifying possible product solutions and evaluating each possible solution. After product demonstrations and initial selection of four possible solutions, site visits were made to similar municipal users. The Committee unanimously made the final selection of JD Edwards on September 24, 1999. The City of Denton uses the Oracle EnterpriseOne software package for Job Cost, Warehouse Inventory and Procurement, Financials, General Ledger Accounting, Human Resources, Employee Information, and Payroll. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. Oracle USA, Inc. confirms that the PeopleSoft Software is the proprietary property of the Oracle Corporation, the parent company of Oracle, USA, Inc and thus the sole source vendor for maintenance contracts for the Oracle EnterpriseOne software package. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source and protected by copyright or patent; do not have to be competitively bid. RECOMMENDA TION Award to Oracle USA, Inc. in the amount of $89,900. Agenda Information Sheet September 20, 2005 Page 2 PRINCIPAL PLACE OF BUSINESS Oracle USA, Inc. Pleasanton, CA ESTIMA TED SCHEDULE OF PROJECT Maintenance is being paid for November 1, 2005 through October 31,2006. FISCAL INFORMATION Funding for this purchase order is budgeted in the FY2005-06 Technology Services Operating Account number 830400.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Verification Attachment 3: Cost Analysis l-AIS-File 3372 anna - Support Renewal for the City of Denton, TX P Attachment 1 From: To: Date: Subject: "TIM MCNEIL" <tim.mcneil@oracle.com> "Anth ony. Caran na@cityofdenton .com" <Anthony. Caran na@cityofdenton.com> 7/28/20055:14:18 PM Support Renewal for the City of Denton, TX Anthony, Following is the support fee forecast you requested. Please respond to confirm your wish to continue this support and the billing address is correct. Also, please let me know if your city is exempt from state taxes. Thanks. Customer ID: 34340 AB#6557926 Support Period: 11/01/05 to 10/31/06 Supported Products: Licensed modules and users from former JD Edwards. Support Fee: $89,900.00 Billing Address: 215 E. McKinney Denton, TX 76201 Attention: Anthony Caranna Tim McNeil Support Services (925) 694-6689 'A..APG. 24. 2005010: 41 ~M ORACLe Attachment 2 JemE!S McLeod 732 -56S-l9l ~584 p. 1 500 Oracle Parkway Redwood Shores, CA 94065 AUQust18,200S Anthony Caranna City of Denton 215 E. McKinney Denton, TX 76201 Dear Anthony: , This letter shall serve as confirmation lhalt as of the date of this letter, Oracle USA, Inc_ confirms that the PeopleSoft Software is the proprietary property of Oracle Corporation; the parent company of Oracle USA, Inc. Oralc:le USA, Jne. is the sole source provider for 'Support Services for the PeopleSoft Software in the United States. The software fixes, upgrades, new releases, and other SoftvJare Support Se!rvices are not available via any other source. Items are available from only one source because of patents, copyrights, trade secrets, or other proprietary information. , Sincerely, '.-.... --'..ifJtJ-. /i}/.J./~. / v'lames L McLeOr-v 7'f Regional Manager. North America Support Services Sales Oracle USA, Inc, ("') c Ol E J:: () ro ~ <D 0 0 0 in Ol 0 Ol- 0 00 N L[) 0 !;2 0 "<t CO_ O N 0 00 N "<t 0 0 0 (Vj CO_ O N 0 00 N ("') 0 0 0 N "<t 0 6 0 00 N N 0 !;2 0 00 >< 0 "<t- o I'- N 0 0 0 0 0 0 co- o <D N C/l 0 Ol 0 () 0 0 '2: m 0 N- Ol Ol (/) Ol N ~ ~ c 0 Qj ~ -0 E 0 .2 -" E 0 0::: 5 :r: ci ~ C/l .2 c Qj t 0 c C/l 0 0 0 :J 0 a. '0 N ~ ~ Ol m .2 >- C/l C Iii :J Qj Ol a. 0 ..0 Ol a. 0 '0 J:: E ~ ro C/l c Ol .~ Ol ro ro :J Ol ~ C C 0 E 0:: 5 Qj 0 ~ ~ ci-o ro 0_ 'E c C N Iii ~ ro ~N 'iij () ci Cl~ E :;:; :J ~<17 "5 0 c .2 ~ -0 () 'w Ol c () ro ~ Ol N 0 ro J:: 5 'E ~ e '0 0 ro c 0 :J :J a. 0 00 -0 >. a. ro :s :J e ro c- () 0 () a. a. Ol ro ~ ~ Ol C/l C/l .2 E ro C/l -0 Q Ol :J C C/l Ol t; 0 ro 1:: "E Cl 0 ro c -:;: C/l a. ro c .- Ol E a. 5 ro , a. Ol :J -0 E C/l 00 C/l UJ Qj ~ I'- Q) .2 >- 0 C/l C: C/l (/) >< -, C/l Ol Ol Iii "<t .8 ro (/) ~ '0 N ci C Ol C C/l (/) C 0 () ro Ol LL ~ ~ c C -0 (9 () ro u:: :J --' 0 c U () a. Ol C .~ E ..0 a. - Ol C ,g .Q, <( .~ E J:: 0 _ ro c () ~ -0 E- ro 2 Qj :.c c 5 "5 2 Ol 0 Iii > ~ 00 :;:; :J 0 -0 C/l .2' >-:.0 c (9 ~ Ol C/l-o c ~ 0 2 <( <( Iii () e- l--t- Of- C/l 0 0 Ol 0 --' ~ 0 () :J 6 (/) c ro 2 ro ("') <( c Ol ~ Ol LL -0 C '0 Ol 'iij C/l -0 :J 0 E <( ~ 0 'Of- "<t c-- f- Ol 0 '0 .8 Qj 0 Ol ro 0 :5 0 > 5 Ol- 0 ~ iI:' ("') C/l- ~ 00 0 I'- "E E Ol (/) ro 0 5 Iii 5 .l= ..Q :;:; -0 C/l Ol 'c UJ Ol ~ e-t- J:: 0 Br- -, Ol iI:' '0 ~ Ol 0 Ol (/) C ..0 C c "5 0 Ol 0 ~ C/l a. ~ C/l Ol ro :; C/l 0 ..0 .~ C Ol Ol () :J 5 [L Ui Qj c C/l Qj 0 en C/l 0 .. >- c () c C -0 0 Ol 'E c -" ro C/l :5 -0 0 UJ >- .~ Ol ~ ~ Ol ~ 5 0 C/l C :; U -0 a. - ro ro E UJ E 0 ~ a. () ~ 0 0 (t () x ~ 0 .2 -, 0 c UJ ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE ORACLE ENTERPRISEONE (FORMERLY PEOPLESOFT ENTERPRISEONE (FORMERLY JD EDWARDS ONEWORLD)) SOFTWARE P ACKAGE 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 3372-PURCHASE OF ANNUAL MAINTENANCE FOR ORACLE ENTERPRISE ONE SOFTWARE PACKAGE AWARDED TO ORACLE USA, INC. IN THE AMOUNT OF $89,900). 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 3372 PeopleSoft Enterprise One $89,900 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. 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 ~~ 5-ORD-File 3372 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose _ SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of annual maintenance for the City of Denton Cisco networked devices (Smartnet) including switches, hubs, routers, and Cisco IP phone equipment including 24 hour/7 days per week Technical Assistance Center (TAC) support on all equipment located in City of Denton facilities as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefore; and providing an effective date (File 3377-Annual Maintenance for Cisco Networked Devices awarded to InterNetwork Experts in the amount of $88,696). FILE INFORMATION The Cisco network provides mission critical support pathways for all departments using phone and data services including Police and Fire, Electric, Water, Solid Waste, Customer Service, Engineering, Library, City Manager's Office, Tax, Municipal Court, Facilities Management and Finance. It is essential for the City of Denton to upkeep current maintenance with the vendor in order to ensure availability of upgrades, software fixes and access to knowledge and support resources. RECOMMENDA TION Award to InterNetwork Experts in the amount of $88,696. PRINCIPAL PLACE OF BUSINESS InterNetwork Experts Lewisville, Texas ESTIMA TED SCHEDULE OF PROJECT Maintenance contract schedule coverage begins December 1, 2005 and ends on November 30, 2006. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY 2005-06 Technology Services operating budget account 830200.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote and CISV Certification Attachment 2: Cost Analysis l-AIS-File 3377 Attachment 1 6ii nterNetwork EXPERTS Go DIRect Contract Number DIR-BUSOP-012 September 10, 2005 CIICD hUE.' -- PARTNER GDL.II CERTIFIEC City of Denton Cisco Maintenance Summary Page Please reference Contract Number DIR-BU50P-012 on order Quote valid for 30 days Terms are Net 30 Note: The prices quoted are at or below CISV Catalog Prices. InterNetwork Experts 1955 Lakeway Drive Suite 220 Lewisville, TX 75057 CISV# 1-76-065-0041-500 Customer Signature of Acceptance Date <D <DOl ~ ~- 000 o N :gd'; @ ~a_><Ol 8 ~ al- N~ N "<tOO Ol e~ LO 8 L[)- Ol- a<D "<t N ("') 8~ ~ ?\J U1_ C"\J_ 01'- N 01'- N N ("') NO 00 ef2 ~ 8 ~- Rj- N I'- ~a 128 8 Ol- aN N 8~ m ..q- Oll'- OlN ~ N C Ol E J:: () ro ~ u Q) C/l- Qj C .~ C/l- Ol C o J:: a.E cf'* (t) 0.. ~e oOlc~ _ 0 >-ON ~..clt.... :5 g-.E ~ 2 ID ~o..~ ooLL O>t -g~8 z~.8 cOle .Q ~ 6.Q 0.. Q) .w ~ .;;:: ""C C Q) ~.S; ~ E Q) e >< 0 oo..UJO C/la ~~ .a U1- rol'- Ol("') LL '0 -0 <( Ol<D ro0j ~ 00- ~("') ro~ :r: Iii :;:; 'c c Ol E a. 'S IT UJ o () C/l o o o "<t <D- Ol ~ C/l Ol Cl ro J:: o Qj ..0 u:: C/l Ol 2 >- :r: C o E c o N .~ > .~ C/l Ol C/l ro Ol t; .~ Iii ~ ro 00 ..0 :J C/l Q) ~ c 0 .Q 6 10 .w ~ ~ a.c X 0 UJO ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR THE CITY OF DENTON CISCO NETWORKED DEVICES (SMARTNET) INCLUDING SWITCHES, HUBS, ROUTERS, AND CISCO IP PHONE EQUIPMENT INCLUDING 24 HOURI7 DAYS PER WEEK TECHNICAL ASSISTANCE CENTER (TAC) SUPPORT ON ALL EQUIPMENT LOCATED IN CITY OF DENTON FACILITIES AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION THROUGH THE CATALOG INFORMATION SERVICE VENDOR (CISV) CATALOG PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3377-ANNUALMAINTENANCEFOR CISCO NETWORKED DEVICES AWARDED TO INTERNETWORK EXPERTS IN THE AMOUNT OF $88,696). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3377 InterNetwork Experts $88,696 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY '-1C~ 4-0RD-File 3377 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose Ii SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of software maintenance for continued vendor support of the Informix Dynamic Server Relational Database software as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefore; and providing an effective date (File 3370-Purchase of Software Maintenance for Informix Dynamic Server Relational Database Software awarded to CompuCom Systems, Inc. in the amount of$64,817.00). FILE INFORMATION The City of Denton uses the Informix Dynamic Server Relational Database software package for the Utility Billing System, the Municipal Court Management System, and the Geographic Information System. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. RECOMMENDA TION Award to CompuCom Systems, Inc. in the amount of$64,817.00. PRINCIPAL PLACE OF BUSINESS CompuCom Systems, Inc. Dallas, TX ESTIMA TED SCHEDULE OF PROJECT Annual maintenance is being paid for November 1,2005 through October 31, 2006. FISCAL INFORMATION Funding for this purchase order is budgeted in the FY2005-06 Technology Services operating account 830400.6504. Agenda Information Sheet September 20, 2005 Page 2 Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Renewal Notice Attachment 3: Cost Analysis l-AIS-File 3370 ~' ~ ~: I . E o u ;:::) III ~ C. ~ E -Q) III CO >-C'ClM o (/)...JC\I E-~ U 0 lG >< 0<55~ a. LL 1Il~ E ..... C'Cl 0"= U.....C'Cl ,,0 o C (/) >- ell -0 o CO .....Il) .Eo -00 =N ell ~ >..... (/).... .- - c VI o :::l :;::; C) ell :::l oct :::l a (/) :.c I- - .!!J .!'!! (.) cv c. fJ) VI.... Eft Eft L!) N 0 c<) 0 0 ..t c:0 "<t c:0 r--- Eft o o 00 .... (") tF7 c Il) (.) 00 oil) ._ 0 ... 0 ~N D..O cv ~ "CN VIe S""=- (.) .- 0 c:> E. o 0 :.: > U Z c 0 "C E ::::> Z w "C E cve:gWOCD .!!J - 0 cv ... 0 "'iiiNVI::O e-:i: .;:: Cll N cv CVMe-:i:.... clij.....S:g~ we:::: (.) c CV- :Ucvowe::::8 1:: g..c:U~..c cv Cll :::l 1:: C fJ)COcvCll:::l .!:! S ~ fJ) lij e E .:: - .!:! C :; Cll Cll E'- c:2: Cll: >-:> c":::: 0:> >-$: .~ fJ) 0 fJ) E - x Cll .- iii o ~ E:::l _ C ... C -=ct ,Ec cct E o t) c o - c 0) :E o ~ '(3 cv- @) t::c~><co~ CVCVxl-O)O) :2:0 cv ~r-;-t: C)'OI- c~ EO) ._ l::/l 0 M ~Z'....Clo, U .- 0 cv 0 .- uO)od';~ .;..; .. .... t) ~ ~ ~ .9- Qj ::: ...._CllCVNcCll ....cc.... oE Q)oE"C":..cw _Uo"CfJ)D.. o uct ~ ::::J Z' o u ...J ...J () a... o o w o N Eft o o c::i o ..... .....- tF7 cil r::: '0 .;:: a. .... (.) III ... .... r::: o U > (/) u Q) .... III .... (/) ~ :8 ... o .... III .!!! r::: o :;:; .l!! o ::::J e- ll) :.c: .... .E Cl r::: '0 .;:: a. ...J ...J ~ o N W OJ .... o N <D It) .... .., <D .., N co .., .... 'II: Cl o iii 1li () > III U E o () :J c.. E o () c o Cl c 'u .;: ll.. tl ~ 'E o () > !!J () CIl . ,;2 en g := 0- "*.8 ~~ o 'c -::: :::l ;;; t: .- 0 c C. ~ g- l'Cl o~ :J _ C" ..... :E.E _ :::l .E ~ Cl~ .= C C.J ell .;: ..c ll..1- J!2 ><: 1.0 o co N ..... o 0) - o :::l a x 'E ..... .E c c o - c 0) o - o ~ (3 Ui S o Z From: To: Date: Subject: Quotation "Passport Advantage Web" <Passport_Advantage_Web@lotus.com> <ANTHONY.CARANNA@CITYOFDENTON.COM> 8/21/2004 4:03:23 AM Passport Advantage Online Software Maintenance Renewal - Number: 0025279258 ***** Note: ***** This is an automated e-mail message; please do not respond. Dear Passport Advantage customer, Thank you for acquiring Software Maintenance through Passport Advantage. This e-mail is a reminder of the approaching renewal date for your Software Maintenance. We are pleased to provide you with a Web site where you may view a renewal quotation detailing the Software Maintenance which needs to be renewed to assure your continued coverage until 1-Nov-2005. Accessing Your Software Maintenance Renewal Quotation Online: You can access the Web site at: http://www.ibm.com/software/howtobuy/passportadvantage. You will be prompted for the Username and Password that have been assigned to your Passport Advantage Site. If you do not have this information, please contact your eCustomer Care team as indicated below. Once at the Web site, choose "Software Maintenance Renewals" from the "Online Ordering" category in the left navigator. After reviewing your renewal quotation, you may either accept it as is or adjust the quantities listed. In either case, you have the choice of sending your renewal quotation to a Business Partner for final pricing and fulfillment or submitting the order directly to IBM for fulfillment at Suggested Volume Price (SVP). Forwarding Your Software Maintenance Renewal Quotation to a Business Partner: To send your renewal quotation to a Business Partner, select the "E-mail Business Partner" button. You will be prompted to enter your Business Partner's e-mail address. A copy of your renewal quotation will be routed to your Business Partner who will provide you with final pricing and expedite your order. Placing Your Software Maintenance Order Directly with IBM: To place your Software Maintenance order directly with IBM at SVP prices, select "Order Direct". We accept credit cards and purchase orders as methods of payment for your Software Maintenance renewal. Terms: Please note: Software Maintenance benefits will cease to be provided if your Software Maintenance coverage is not renewed prior to the expiration of the current coverage period. Reinstatement of Software Maintenance coverage after expiration of the current coverage period will be subject to higher prices. If you have any questions about your renewal quotation, please contact: Durdan, Beth (E.D.) Phone Number: 1-888-771-7705 x35040 Fax Number: 1-866-268-0002 Emai1 bdurdan@ca.ibm.com Yours sincerely, IBM Passport Advantage eCustomer Care Team For additional contact information https://www-112.ibm.com/software/howtobuy/passportadvantage/paocustomer/docs/e n US/ecare.html emc=10007361822USA <D"- 000 in "<t- >< 8<D N L[)a 08 ~ 0)- 8L[) N "<to 00 ?5 0_ 8ID N ("')0 00 NO >< 0"-- 0"- N NO !;2a ;; ~->< aL[) N ;;~ o~ o L[)- 0("') N 00 a~ m ~- 8l("') ~ ("') c Ol E J:: () ro ~ _ C/l 0::: Qj (/) C/l UJ :J t'O o ~ a.Ol 0...0 ill E .8 ~ Ol Qj .~ en ~ ~ ~ Ol ro c ~ 1:: ~ ro 0 Ol 1::02:1: :J ~ ~ "CO 8 '~.8':: row>.C .~ c 13 ~ .- Q) co :J 5.8 g-~ 2Ol()"" o<l .~ 3l 5 en en co Q) "E ~ ~ ~ co (f) g ~ ~ ~"-;- 0 o <;i Cl g a.a.C I g- ~ .~ 0 ~ ~.~ ~ ~ (; ~.~ .~ 5 Ol .2 ClE~c c ~ e..c ~Q)~~~ a.~"'C~"'C "5 ..c ~ Q) ~ Cf)roC)OC) IDroc..ec.. oO:JD..:J C/l8 ~a :J Ol- roOO Ol LL '0 -0 <( Ol8 Iii 0 5 "-- il:'N o~ (/) Iii :;:; 'c x .~ Q c >. ro -0 Ol .~ Cl C Ol C/l ;S C/l C/l Ol () () ro ~ Ol C/l :J -0 Ol C/l C Ol ~ C ~ 5 () c o () o o L[) c ro :5 Ol o 2 ~ ro 5 iI:' o C/l Cl ~ ii5 C/l 'C Iii :r: Ol :5 -0 C ro Ol Iii ~ o C/l (/) o C/l t :J o o Iii a. '0 'c :J 2 Ol () '2: Ol C/l ~ (9 0::: (/) UJ Ol :5 C/l t o a. a. :J C/l Ol .~ Cl c en Q) c x :il .~ .~ .g a.C E~ OJ:: 01- ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF SOFTWARE MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE INFORMIX DYNAMIC SERVER RELATIONAL DATABASE SOFTWARE AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION THROUGH THE CATALOG INFORMATION SERVICE VENDOR (CISV) CATALOG PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3370-PURCHASE OF SOFTWARE MAINTENANCE FOR INFORMIX DYNAMIC SERVER RELATIONAL DATABASE SOFTWARE AWARDED TO COMPUCOM SYSTEMS, INC. IN THE AMOUNT OF $64,817.00). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3370 CompuCom Systems, Inc. $64,817.00 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY ~JRD-3370 ~~ AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose Ii SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of continued software license maintenance for the City of Denton's Novell products as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR); providing for the expenditure of funds therefore; and providing an effective date (File 3380-Annual Software License Maintenance for Novell Products and Acquisition of Additional Novell Licenses awarded to SHI-Government Solutions in the amount of $98,051.05). FILE INFORMATION Novell applications and services are utilized to provide overall network and user security, to protect citizen information, to distribute applications and functions, and to control access to information and hardware. The Novell licensed products are Netware 6.5, Zenworks, Border Manager, Groupwise, Ichain, Secure Login, Novell Cluster Services, Novell Extend Director, File System Factory, and Nsure Identity Manager used on desktops and servers throughout the City of Denton. Novell Zenworks allows the City of Denton to manage the entire lifecycle of desktops, laptops, servers and handheld devices. Through Policy-Driven Automation, ZENworks decreases administrative burdens and increases enterprise-wide business efficiency. ZENworks Desktop Management allows the City of Denton to automatically and transparently configure, update and troubleshoot workstations from wherever they are-inside or outside the firewall-without having to visit each device. Nsure Identity Manager and Secure Login are components of our security ill vault. They enable City of Denton to manage the full user lifecycle, automating changes to user access rights, passwords and profiles, streamlining administration and simplifying password management. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes and access to knowledge and support resources. Agenda Information Sheet September 20, 2005 Page 2 RECOMMENDA TION Award to SHI-Government Solutions in the amount of$98,051.05. PRINCIPAL PLACE OF BUSINESS SHI - Government Solutions Austin, Texas ESTIMA TED SCHEDULE OF PROJECT Annual Novell software licenses and maintenance will cover FY 2005-06. FISCAL INFORMATION Funding for this item is budgeted in the FY 2005-06 Technology Services Operating Budget account 830500.6504. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Cost Analysis l-AIS-File 3380 SRI Quote # 1275287 Attachment 1 Page 1 of3 Pricing Proposal Quotation #: 1275287 Created On: Jun~16-2005 Valid Until: Jun-30-2005 SHI Account Representative City of Denton ~~~_~~~~~~~~~^~~~_~'.~'~'~O~_"~~~~~~'_'o'~~~~~.'-'<-~~.~.^~o._~_~~~~ Jim Avery 601 E. Hickory, Ste A Denton, TX 76025 Phone: 940-349-7660 Fax: 940-349-8533 Email: jim.avery@cityofdenton.tx.us Sandra Pisula 1250 Capital of Texas Hwy South, Suite 1-350 Austin, TX 78746 Phone: 800-870-6079 Fax: 512-732-0232 Email: sandra_pisula@gs.shLcom All Prices are in US Dollar(USD) Product Qty Your Price Total 1 Novell Open Enterprise Server 1.0 1-User e-Maintenance - Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1st NOVELL MLA - STATE OF TEXAS - Part#: 877-000157-001 1114 ~~~~o~-N-~~~~_~~."~"~~'~~._W'_~~~~O^~~"~~'~~~~WWW-"--~~~~.~_~~,.~'"~~~~0,~.~^~_~~~~o~0"'~~O^~-~~~~~-M~'~~~~~~~~~ $20.41 $22,736.74 '""~~~~W~,,+,~,~_~._'~'O~~'T.~'~~~~~~-'-~"~~~~~~~~'~~~~~~~.~~,~,~~~~""~~~~~'M~'~~~_^~~~~~~W~~ 2 Novell Cluster Services 1.7 for NetWare 6.5 Cluster Server 1 Maintenance - Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005657-001 3 Novell BorderManager 3.8 1-User Maintenance - Annual 981 Maintenance Required With license. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005716-001 $637.76 $637.76 $5.10 $5,003.10 ~~._~~~,+,-+,-~~~~~~~.~~~~~w._w-w-~~~~~~~~_~~~~~~~~w.w-.....~~~~~~~~._~w.w.w-w-"",.^~^.^~, $1.53 $1,809.99 4 Nsure Identity Manager 2.0 Standard Edition 1-ldentity Maintenance - 1183 Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005768-001 '~^.~_~~__~~O~~"""""'^O~~~_~^~_.-'_~"~~T'~-+~'~~.^._---~'~,~~,~~~~~",,,,~~~^__~~~,~~~~~~,o~~<n<n"+W-~~_'~"~~'""~~~~~._~~~'O~~~~"~+._~~ 5 Nsure Identity Manager Integration Module 2.0 for Email1-ldentity 1183 Maintenance - Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005776-001 $0.77 $910.91 __O^_~._,."~"~~^_~..__,.~o~~~~~.~.~~_~^_~~~_,.,....~~~~~T_"~'~.'~~_~_~_~~~""~~~~_~~_~~~"_.'~~~~.'+'-'~~_~~~+'-..~.~~~^. 6 iChain 2.3 1-User Maintenance - Annual Maintenance Required With 900 License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st . NOVELL MLA - STATE OF TEXAS - Part#: MNT-005797-001 $1.28 $1,152.00 ._.,~,~~~~~~~.,._-..+-.+'0~~~_~""'~~~~__~~~~' __,__.__._.~~~~.~~.~~...,~".,..~.~~~_~_~_". ,__~",~~~^,~~~~_~,"'~"~~'~'~__~_~'__'T~ ~__~~~_.~n.~~._' ,,~'~~~~~'__'T__~_._~~.~.n~___,~~~,o__'o,.'~m."'" ,+,-+' 7 SecureLogin 3.5 1-User Maintenance - Annual Maintenance 900 Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-00571 0-001 $9.69 $8,721.00 8 GroupWise 6.5 (Full Product) 1-User Maintenance - Annual 1058 .~..~~~"""~,~~~~_o~~_~~~~~_~~~~~~-c'-w.,~~~~~~~~~'~._~~-~~~~o~'-rl~~~,~~~~~-M'" $16.84 $17,816.72 file:/ /Q: \Agenda%20Itern %20Shared\2005 %20Agenda%20F 0Iders\Septernber%202005\Sep... 9/512005 SRI Quote # 1275287 Maintenance Required With License. Current Maintenance period ends Aug. 31 st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005584-001 Page 2 of3 ~~_,~~o,o,~~~~,~,~~~w-.~O^~-~~.~~,-,~~--~~'~"~~~~~-'~~',~~~_~_~~~~...,.~O^ $16.84 $17,496.76 9 ZENworks 6.5 Suite 1-User Maintenance - Annual Maintenance 1039 Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005843-001 10 Novell exteNd Director 5.2 Enterprise Edition 1-User Maintenance- Annual Maintenance Required With License. Current Maintenance period ends Aug. 31 st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-006011-001 856 ~~~~~...,.w.~~~~~~~~~""~~~~..~~~m__~"~.O~~~~~-_~~~~^~~~_'~.~,~_"~~~w--N-"'~.^~~___~~"~~_~""~~"~.~~"'~"'''~~~'''''w.~~~w-.~~"o~,~~~~~~o'~'~~ $7.65 $6,548.40 ~"~._'n~_0<+"",~~~_~,_"o~~",----~-~'-,+~~.n.._,.~~~-~~~,~~,____~~n"*~^~~","'~"~'~~~~~~'O"T'~_'_~+'+'~~O^_O"'~'_",~_~_~~~~_,__'~'-c'+,~~~o~_..._,..,~~~_~~,~rl-__hn~..~_~...,~,+,~~~._d"'~+'""''M~_O~''P'+'+'~__O~'O~ 11 File System Factory 1.2 1-User Maintenance - Annual Maintenance 1039 Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005827-001 $1.53 $1,589.67 12 GroupWise 6.5 Web/Wireless/Messenger 1-User Maintenance- Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1st NOVELL MLA - STATE OF TEXAS - Part#: MNT-005587-001 65 ~"",~~'~O~~",~'~~~~~~~Ho"__~~~_~""""~~M'-'o"~^.~~-~~-~~~~~^~~~~~~-mo~.",,~~~^.~~'~~~'~~'~~~~'"~~~~~' $4.08 $265.20 13 Education Training Vouchers Market Type 2 Novell MLA Customer Education and Support - Part#: 00662644433905 25 ,_~~~~~~~~O~'~_~M~~~_~~'~~+-H'~~~-~~~~~-H'~~-~~~~~~~~"~-~'~~~.~~~~,_~~~-H'-H'-H'~~~~ $316.84 $7,921.00 .~~~,w-~,~~~~_~~,~,__~~'~'~__~~~O,~_~~.~.~_~~~~T"'~--~-'~~-N-.'~_~~~~~'_~~~~~_'~O~~+~~-^~'~~~~ 14 Nsure Identity Manager Integration Module 2.0 for Windows 1- 1183 Identity Maintenance - Annual Maintenance Required With License. Current Maintenance period ends Aug. 31st; renewal maintenance due each Sept. 1 st NOVELL MLA - STATE OF TEXAS. Part#: MNT-005774-001 $0.77 $910.91 _~~~_,~~~~~~_.~,~",~~~~~,~~~~~~"~~.+,~~~~~~.~'~'~_~~_~~~~."._~?<~~~,~.,~~~~~~~_~<+v+"-"+.~~~~~~.~~~'~..~,...<~~~~~'~_~___"~<~~~~~'~'O__~_C"_~,__',,hM"~~' 15 Nsure Identity Manager Integration Module 2.1 & Prior For Database 1183 1-ldentity E-License Novell MLA Customer Disc 50 pet - Part#: 979-000305-001 $3.06 $3,619.98 -H'~~_~~_~~~~~~~..~~~~~~~__'_~~~~'-H'-H'~~~-H"~~~'-'-'~~~~~-~..~~~~~ $0.77 $910.91 16 Nsure Identity Manager Integration Module 2.1 Database 1-ldentity 1183 Maintenance Novell MLA Customer Disc 49 pet - Part#: MNT -006078-001 Additional Comments Total $98,051.05 ,~~~~.__~~~~.~~~~~~~~O~~~O__._~'O~~~~'T ~~~~_~~~.~~~~~~'~~~~~~~~~~T'T~'~~.^~~'~._~~~~-H'~~~~"-~~~~~~~~.~~.~~~~~ Here is a quote for your renewal for your Novell MLA Renewal for the period of 9/1105 - 8/31/06. Before submitting this order please complete your self audit online at https://selfaudit.novell.com, Print and include a copy with your order. Novell requires a self audit completed each year and included with your purchase order for renewal. PLEASE NOTE: This quote DOES NOT constitute as your actual license count for your self audit. Your Novell MLA membership number is: 127352-M6X0806. If you have any questions please feel free to contact me at sandra_pisula@gs.shLcom file:/ /Q: \Agenda%2OI tem%20Shared\2005 %20Agenda%20F olders\SeptembetlIo202005\Sep... 9/5/2005 SHI Quote # 1275287 Page 3 of3 Thank You for choosing SHI-GS! To ensure the best level of service, please provide End User Name, Phone Number, and E-Mail Address when submitting a Purchase Order. Our DIR Software Contract Number is DIR-SDD-198. For any additional information including Hardware and Software Contract Numbers, please contact an SHI-GS Sales Representative at 800-870-6079. file://Q:\Agenda%20Item%20Shared\2005%20Agenda%20Folders\September%202005\Sep... 9/5/2005 <D~ aL[) ina 000- aOl N L[)0l 0::; ~ ,,- 80 N~ "<t<D 0"- ?5 0')- a~ a~ N~ ("')L[) 0;;; C\j 0)- 8"- N NL[) e~ o <D- oL[) N c;Bl o~-xx 8("') N 000 a~ m U1- 8lN ~ N C Ol E J:: () ro ~ w w- w w Ol Ol () () () () ro ro ~~ 5 5 mID c c Iii Iii c c ID ID xx Ol Ol g g 0 ~ ~(Jfuiw~ Q) ID ~ ID 0 EE~C~ 0.. 0.. Q) 0.. (; -o-oZ-05 6~~.8~~ ~()()~()~ oo...o...~o...ID w L[) 0 Cl 0 ~~~g-g;E w ~ :J ro Ol LL '0 -0 <( Ol8 Iii 0 56 il:'L[) ON (/) Iii :;:; 'c Qi > o Z xx C .!l! U Ol Iii 5 Q) C J:: Cl :J o :5 xxx o weD 2 Q) .~ ~ 0..0) -oZ ~.8 W Ol 0-0 o..roc o ~"co ~:3-~ xxx W Ol () '2: Ol (/) ~ o t5 ~ i:5 ZQi 0.. > > 0 oZ -0 C Ol > Ol o E ~ ~ .2 ~ uf = ~..o ~ ~ en .S:: co Q) c.. 0 .~ -0 C <:: COOl co C en <'3 a'ii: o..Ol> ~~ID o.~ en ~(/):J xxxxx ~~ N ~ U1~~U1 L[)eD~~eD eD.~ 2 ~ ~ ~5>-~o 5g.E~5 Q)e~o~ z(9~[]JN .8.8.8.8.8 Ol Ol Ol Ol Ol ""C ""C ""C ""C ""C ~ ~ ~ ~ ~ en en en en en c.. c.. c.. c.. c.. :J:J:J:J:J ~- ro -0 a. :J Ol Iii- 5 iI:' o W Ol :5- .8 W :J Ol ;i"_ C Ol o C -0 :J- o 5 -0 C ro 0- <D ~ "<t Ol ("') <17 COO o 8 t5-c ~"S ~ ~ 00 5 o Ol () C Ol Ol () W ~ :J Ol >- c~ "co ~ E :; Iii () Qj Ol >5-E o Ol Ol c Iii E ro 5 Ol l..... ~ ~ .EoC) W ro ~Q)Q) ""C~o "S: Q) ~ e ~ c c.. 1:: Q) C)oc c :s "co .~ a. E Ol 0 .2 I- c ~ ""C en :s ~ c 0 ro Ol Ol ..o~:5 IDa>+-- W ~ :J :J ~ ~ .8~~ Clcoo cro<D .~ ~ co_ .~ ~ d'; -ro~ -oE<17 ~Q)(j) ~:58 ~ ~~ 0-0 0 C ~ 5 E Ol w 2; E .goO) t)Q)w ~ Co ~ ~~c o ::J ~ en 10 :s .~ ~ 0 c(ij:S Ol c 0 ~~.8 O:::-oW o~~ Ol ~ c:5-g ~ o c co :J ~.c~~ c.B\u\U ~ '3: ~ 5 ~ en ~ 'E UJ<(:J(/) ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF CONTINUED SOFTW ARE LICENSE MAINTENANCE FOR THE CITY OF DENTON'S NOVELL PRODUCTS AS APPROVED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION DEPARTMENT OF INFORMATION RESOURCES (DIR); PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3380-ANNUAL SOFTWARE LICENSE MAINTENANCE FOR NOVELL PRODUCTS AND ACQUISITION OF ADDITIONAL NOVELL LICENSES AWARDED TO SHI- GOVERNMENT SOLUTIONS IN THE AMOUNT OF $98,051.05). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3380 SHI-Government Solutions $ 98,051.05 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 3-0RD-File 3380 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance awarding a contract under the Catalog Information Services Vendor (CISV) program for the purchase of a Unitrends DPU-5000 Data Protection Unit, and DPV-5000 Data Protection Vault as awarded by the State of Texas Building and Procurement Commission contract CISV #1200955787200; providing for the expenditure of funds therefore; and providing an effective date (File 3376-Purchase of Unitrends DPU-5000 Data Protection Unit, and DPV-5000 Data Protection Vault, awarded to ARW Systems, LLC. in the amount of $198,744). FILE INFORMATION This equipment is being purchased in order to provide faster recovery times and offsite replication for several mission-critical City systems. These systems include, but are not limited to, Public Safety Computer-Aided Dispatch (CAD), Police and Fire Records Management Systems (RMS), Network Directory Services, GroupWise E-Mail, LaserFiche Document Management System, Tax Accounting System, Parks Reservations System, Fleet Maintenance System, Solid Waste Work Orders and Routing System, Planning and Building Inspections Project Management System, Facilities Work Management System, EMS Billing System, and Library Management System. This acquisition was approved by the 2004 Tech Bond Committee and will provide for offsite Disaster Recovery capability for selected applications that have been identified as critical to the effective operations of City Departments. Products and services provided are listed in the vendor's CISV approved catalog and the prices are equal to or less than the published catalog prices. RECOMMENDA TION Award to ARW Systems, LLC. in the amount of$198,744. PRINCIPAL PLACE OF BUSINESS ARW Systems, LLC. Richardson, TX Agenda Information Sheet September 20, 2005 Page 2 ESTIMA TED SCHEDULE OF PROJECT Installation and configuration of equipment is scheduled for completion by November 30,2005. FISCAL INFORMATION Funding for this purchase order is provided in the 2004 Technology Bond Fund. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote l-AIS-File 3376 Attachment 1 ARW Systems 1701 N. Greenville Ave Richardson, TX 75081 P: 972-479-1900 F: 972-479-1904 Information Technology Services Order Company Name JO'y ,~~"'u, Company Name City of Address 601 E. Hickory Address 601 E. Hickory City, State ZI P Denton, TX 76205 City, State ZI P Denton, TX 76205 Contact Anthony Caranna Contact Anthony Caranna Phone 940-349-7249 Phone 940-349-7249 Fax Fax email Anthony. Caran na@citvofdenton.com email Anthonv. Caran na61citvofdenton. co iRO# Sales Person Payment Terms Quotation End Date Quote Number Joe Khan Net 30 DEN5072701 Part Number Description Cost Quantity I Extended Cost All Prices Conform to CISV Guidelines for Contract Number 1200955787200 DPU-5000 5U Data Protection Unit w/24 Drive Bays, Expands to 8.8TB Raid, RX9 compression technology, 2 Gigabit Ethernet port, N + 1 redundant power supplies DPU5000R-24D400 Unitrends - DPU5000 w/8.8TB RAID wI RX9 $ 76,500.00 1.00 $ 76,500.00 GE4P Unitrends - 4 Port Gigabit Adapter $ 535.00 1.00 $ 535.00 Maintenance Unitrends - 24X7X365 Phone Support, DAP5000-3D400 Software Upgrades, Same Day Onsite Service $ 17,881.00 1.00 $ 17,881.00 for 8.8TB RAID Installation DPV-5000 5U Data Protection Vault w/24 Drive Bays, Expands to 8.8TB Raid, RX9 compression technology, 2 Gigabit Ethernet port, N + 1 redundant power supplies DPU5000R-24D400 Unitrends - DPU5000 w/8.8TB RAID wI RX9 $ 76,500.00 1.00 $ 76,500.00 SDS5 Unitrends - Secure Data Sync License $ 3,412.00 1.00 $ 3,412.00 GE4P Unitrends - 4 Port Gigabit Adapter $ 535.00 1.00 $ 535.00 Maintenance Unitrends - 24X7X365 Phone Support, DAP5000-3D400 Software Upgrades, Same Day Onsite Service $ 17,881.00 1.00 $ 17,881.00 for 8.8TB RAID Installation Unitrends - Turn Key Professional Installation and Configuration of Main DPU and Vault up $ 5,500.00 1.00 $ 5,500.00 to 2 Databases (includes Travel and Expenses) Note: Prices do not include applicable shipping charges Sub Total: $ 198,744.00 By signing below, the parties acknowledge and agree to the services stated above, VV'hich shall be governed byViyu's Standard Terms and Conditions. Signed on this _day of __,2005 ("Effective Date"). Com pany: ARW SYSTEMS Signature: Signature: Print: Print: Title: Title: ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT UNDER THE CATALOG INFORMATION SERVICES VENDOR (CISV) PROGRAM FOR THE PURCHASE OF A UNITRENDS DPU-5000 DATA PROTECTION UNIT, AND DPV-5000 DATA PROTECTION VAULT AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION CONTRACT CISV #1200955787200; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3376-PURCHASE OF UNITRENDS DPU-5000 DAT A PROTECTION UNIT, AND DPV-5000 DATA PROTECTION V AUL T, AWARDED TO ARW SYSTEMS, LLC. IN THE AMOUNT OF $198,744). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission Information Service Vendor Catalog Purchase Method provi ded for in Subchapter B of Chapter 2157 of the Texas Government Code (the "CIS V Catalog"); and WHEREAS, the herein described vendor is a qualified vendor in the CISV Catalog and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a CIS V Catalog purchase; 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 purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3376 ARW Systems, LLC. $ 198,744 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY. ~ 3-0RD-File 3376 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose II SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual service access and support for the General Packet Radio Services (GPRS) wireless computer network for the Public Safety mobile computers used by City of Denton Police, Fire and EMS personnel 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 3383-Purchase of Annual Service Access and Support for General Packet Radio Services (GPRS) awarded to Cingular Wireless (formerly AT&T Wireless) in the amount of $117,289.80). FILE INFORMATION The City of Denton uses the Cingular Wireless (formerly AT&T Wireless) GPRS (General Packet Radio Services) Network to provide Public Safety MDC (Mobile Data Computer) wireless access to the City Computer Network thereby affording direct access to the Public Safety Dispatching, Mapping, and Records system of Police and Fire by providing real-time access to information of both departments. It is essential for the City of Denton to upkeep current wireless connectivity with the established vendor to assure there is no break in service or support. Cingular Wireless is the sole-source vendor for GPRS wireless connectivity in the Denton area. No other Denton area wireless access vendor offers signal coverage to the extent required by Public Safety. Cingular Wireless is the only wireless access vendor to offer Fixed IP (Internet Protocol) addressing which further enhances data security. Additionally, to consider another source would require a complete re-fit, including all modem hardware for the entire fleet at a projected cost of $850,000. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDA TION Award to Cingular Wireless in the amount of $117,289.80. PRINCIPAL PLACE OF BUSINESS Cingular Wireless Phoenix, AZ Agenda Information Sheet September 20, 2005 Page 2 ESTIMA TED SCHEDULE OF PROJECT Monthly access is being paid from October 1, 2005 through September 30,2006. FISCAL INFORMATION Funding for this item is budgeted in the FY 2005-06 Technology Services operating budget account 830700.7946. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote Attachment 2: Sole Source Letter Attachment 3: Cost Analysis l-AIS-File 3383 Attachment 1 www.cingular.com/business To: City of Denton Attn: Tiffany Wei From: Stephen Turner Government Account Executive Cingular Wireless 301 NE Loop 820 #500 Hurst TX 76053 817-359-6428 Monthly Recurrin2 Char2e: Account # 0037122588 $69.99 per line less $10.49 discount = $59.50 per line $59.50 @ 150 lines $8925.00 Monthly Recurrin2 Char2e: Account # 0039995532 (Frame) $399.00 per month less $59.85 discount $339.15 = net cost for 128K Frame Monthly Recurrin2 Char2e: Frame Expansion to 256K $549.00 per month less $82.35 discount $466.65 = net cost for larger 256K Frame Each IP = $3.00 per IP / Month less 15% discount = $2.55 per IP / Month $2.55 @ 150 IP addresses = $382.50 per month Grand Total of Services: $9,646.65 / month with 128K Frame option $9,774.15/ month with expanded 256K Frame option Please let me know if you need additional information or pricing. Thanks Stephen Turner Confidential Page 1 9/11/2005 17::Sfn'}4-79 cH1.-gt:1af v.'ifeless 05..:"30,32 p_m 08- j 5-7005 Attachment 2 ...... -; ,. ci ngu.l.a ~. . r"13<:.1I19 '.n e l}l;tr- .......'1 \\-'W\\, .cingular.com/lIOyernmcn! October 1. 2005 through September 30. 2006 Cingular Wireless is the sole provide;- of wireless internet access compatible with the hardware tUllized by the CilY of Denlon_ Step en Turner Cingular Wireless Government Account Executive Ol <D 00 0 N_ iD "- a ~ 0 ~ N 0 L[) 0 0 L[) ~ "-- a ~ 0 ~ N L[) "<t N 0 "<t (Vj Ol- 0 ~ 0 ~ N 0 ("')0 e U1_ NN a~ 0 ~ N 0 NO Q 0_ ~<D aOl 0 N <D ~<D !20l o - a~ 0"- N ("') c Ol E J:: () ro ~ en C/l Ol ~ ~ ~ s: ~.r: ~ :z ~ ~ Ol Ol ..... (iif; >- '5':::: ..0 > :; '2'ro 0 210 Q) :J 0 C/l 0..__ ro_ E Ol J:: C/l o.:::s::: a. a> o ~ 0.2 roo.. :;~ rorn ~(j) o:!: ~.Q Q).~ Q)"'C =0 J::ro -gro ~~ ~:2 ~~ Om 5~ 00 >-0.. 2 2i' g> Iii ~~cng~ roO~-5Q) (/) ro .2 Ol c:> ~ "S; ~ 0 ;;; ..ct>a..a::: ~~~oo.. .,:;00C:> ~OlEOlo --2 cn..c-- Cf)l....c-"O ~~:ge~ e E~8o a.oro~E cQ)O~l....e .Q .~ ~ co m :;; E-Q)06~2 O~~E~~ ~ :E ~ :g .~ ~ OI-_roLLo<: Ol Iii 5 "E ro :r: Iii c o :;:; '6 -0 <( w C/l Ol ~ s: I- o<l ~ >- ~ E g Iii :; Cl c o C/l C/l C/l E~ Ol Ol ""C .: Os EI- ~o<l 0..1- c:><( Ol E ~ 0 LL.l:: -" C/l . ~ -0 C/l o l..... C 5 0 Ol Q) ~ E ZO:::1:: ~-oro Olea. ~ro~ E Cl J:: c_ o .- 0 o ~:: >-roo ""2 o -6 Ol Cl.- c- ..c ._ co -J::E o () ~ --0 C/l ro _ (f) g-.~ 80.8 ro >- C/l - C/l cn~Q) C/l ro () ~(/)~ .~ .2 Q) 5:n E O:J:;:; oo.....!. ~~m >-- - 0 Cl Ol _ c ro~~ (/) Ol > o 0 e -()a. -g ~ ..0>- 0.. () ~.~ ~ +-,""CU: C/l Cl-o ~~ffi 6 .E ~ 0.. 10 ~ .. Ol >-~ C () ..0 :2 .~ ~ '0 ~ Ol Ol E co en f; Q) c...~ ""C en x..cc>. UJl-roC/l ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR THE GENERAL PACKET RADIO SERVICES (GPRS) WIRELESS COMPUTER NETWORK FOR THE PUBLIC SAFETY MOBILE COMPUTERS USED BY CITY OF DENTON POLICE, FIRE AND EMS PERSONNEL 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 3383-PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR GENERAL PACKET RADIO SERVICES (GPRS) AWARDED TO CINGULAR WIRELESS (FORMERLY AT&T WIRELESS) IN THE AMOUNT OF $117,289.80). 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 3383 AT&T Wireless $117,289.80 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: EDWIN M. SNYDER, CITY ATTORNEY BY ~~ 3-ORD-File 3383 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Black Chamber of Commerce for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $15,800 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H01\bIack chamber ordinance.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON BLACK CHAMBER OF COMMERCE FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTNE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Black Chamber of Commerce for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON BLACK CHAMBER OF COMMERCE (pY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Black Chamber of Commerce, a legal entity existing under the laws ofthe State of Texas (the "CHAMBER"): WHEREAS, TEX. TAX CODE 9351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE 9351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, CHAMBER is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE 9351.101(c) authorizes CITY to delegate by contract with CHAMBER, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the m~tua1 covenants and promises contained herein, CITY and CHAMBER agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by CHAMBER under this Agreement, CITY agrees to pay to CHAMBER a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to CHAMBER, sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) mearungs: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. Black Chamber HOT Funding PY2006 - Page 1 (ii). The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day ofthe month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31St, June 30th, September 30 , and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to CHAMBER an amount of money in each contract year equal to the lesser amount of One and Forty-Six One Hundredths percent (1.46%) of the annual base payment amount or the fixed contract amount of Fifteen Thousand and Eight Hundred Dollars ($15,800). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 1.46% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to CHAMBER of those amounts specified in ~1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of CHAMBER. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. Black Chamber HOT Funding PY2006 - Page 2 7 (c) CITY may withhold further allocations if CITY determines that CHAMBER's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to CHA1\1BER of the agreed payments of hotel tax funds specified above, CHAMBER agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by TEx. TAX CODE ~351.101(a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by CHAMBER may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), only if each are directly attributable to work on programs which promote tourism and the hotel and convention industry, and if each promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 351. 10 1 (a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total' administrative costs of CHAMBER for which hotel tax fimds may be used shall not exceed that portion of CHAMBER's administrative costs actually incurred in conducting the activities specified in ~2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. ill. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) CHAMBER shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of CHAMBER funded by hotel tax revenues. This budget shall specifically identify proposed expenditures of hotel tax funds by CHAMBER. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to CHAMBER any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) CHAMBER acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in CHAMBER with respect to the hotel tax funds paid by CITY to Black Chamber HOT Funding PY2006 - Page 3 CHAMBER under this Agreement. CHAMBER shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE ~35l.101(a), and in the budget as approved by CITY. 3.2 Separate Accounts. CHAMBER shall maintain any hotel tax funds paid to CHAMBER by CITY in a separate account, or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. CHAMBER shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by CHAMBER. These funds shall be classified as restricted :funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, CHAMBER shall make such financial records available for inspection and review by the party making the request. CHAMBER understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEx. GOV'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to CITY, CHAMBER shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds, pursuant to TEX. TAX CODE g351.101(c), and (3) a copy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. CHAMBER shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. CHAMBER shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of CHAMBER's Board of Directors, as well as any other meeting of any constituency of CHAMBER, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006 and terminate at midnight on January 31,2007. However, the program period shall commence on January 1, 2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. Black Chamber HOT Funding PY2006 - Page 4 (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse CHAMBER for any contractual obligations of CHAMBER undertaken by CHAMBER in satisfactory performance of those activities specified in ~~2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse CHAMBER or to assume the performance of any contractual obligations of CHAMBER for or under any contract entered into by CHAMBER as contemplated herein shall not exceed 662/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), CHAMBER will provide CITY: I) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. CHAMBER will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by CHAMBER after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of CHAMBER; (b) The insolvency of CHAMBER, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by CHAMBER for the benefit of creditors; (c) The continuation ofa breach of any of the terms or conditions of this Agreement by either CITY or CHAMBER for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of CHAMBER to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the Black Chamber HOT Funding PY2006 - Page 5 non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to 114.3 or 4.4, CHAMBER agrees to refund any and all unused funds, or funds determined by CITY to. have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by CHAMBER with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that CHAJvIBER enters into any arrangement, contractual or otherwise, with such other entity. person or organization, CHAMBER shall cause such other entity, person, or organization to adhere to. conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. CHAMBER shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent. servant, or employee of CITY. CHAMBER shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and CHAMBER shall be solely responsible for the acts and omissions of its directors. officers, employees, agents, and subcontractors. CHAMBER shall not be considered a partner or joint venturer with CITY, nor shall CHAMBER be considered nor in any manner hold itself out as an agent or official representative of CITY. 5.3 Indemnification. CHAMBER AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY CHAMBER OF THOSE SERVICES CONTEMPLATED BY THIS AGREE:MENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF CHAMBER, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVlTEES. 5.4 Assignment. CHAMBER shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: Black Chamber HOT Funding PY2006 - Page 6 - CITY CHAMBER City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Black Chamber of Commerce John Baines P.O. Box 51026 Denton, Texas 76206 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and CHAMBER and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms ofthe section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. CHAMBER shall, at a minimum, provide insurance as follows: 1. $500,000 Conunercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. Black Chamber HOT Funding PY2006 - Page 7 EXECUTED this _ day of , 2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR OF ATTEST: By: JENNIFER WALTERS, CITY SECRETARY ATTEST: By: By: Secretary Black Chamber HOT Funding PY2006 - Page 8 Exhibit A Denton Black Chamber of Commerce Denton Blues Festival and Auto Show 2006 ADVERTISING Brochures $ 1,800 Postage 2,000 Radio 5,000 Newspaper 2,000 Printing 2,500 Signage 2,500 $ 15,800 TOTAL BUDGET $ 15,800 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Chamber of Commerce (Convention and Visitor Bureau) for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $556,155 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\OS\H01\chamber ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE (CONVENTION AND VISITOR BUREAU) FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Chamber of Commerce (Convention and Visitor Bureau) for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. day of ,2005. PASSED AND APPROVED this the EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE (CONVENTION & VISITOR BUREAU) (pY 2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Chamber of Commerce (Convention & Visitor Bureau), a non-profit corporation incorporated under the laws of the State of Texas (the "BUREAU"): WHEREAS, TEX. TAX CODE ~351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE ~351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municip~lity or its vicinity; and WHEREAS, BUREAU is well equipped to perform those activities through its Denton Convention and Visitor's Bureau; and WHEREAS, TEX. TAX CODE ~351.101(c) authorizes CITY to delegate by contract with BUREAU, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and BUREAU agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by BUREAU under this Agreement, CITY agrees to pay to BUREAU a portion ofthe hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to BUREAU sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meamngs: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code ~351.002 and City Ordmance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. CVB PY2006 HOT Fund Contract -- Page 1 - (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day ofthe month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., . fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Afeement is in force. Contract quarters will end on March 31 S\ June 30th, September 30 ,and December 31 sl of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to BUREAU an amount of money in each contract year equal to the lesser amount of Fifty One and Fifty-Six One Hundredths percent (51.56%) of the annual base payment amount or the fixed contract amount of Five Hundred Fifty-Six Thousand One Hundred and Fifty~Five Dollars ($556,155). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 51.56% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to BUREAU of those amounts specified in ~1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility ofBUREAD. CVB PY2006 HOT Fund Contract -- Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that BUREAU's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to BUREAU of the agreed pa)'TIlents of hotel tax funds specified above, BUREAU agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity as authorized by TEx. TAX CODE 9351.101(a). Funds for any calendar year which are unused by midnight December 31 sl ofthat year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by BUREAU may be spent for day-to-day operations, office supplies, salaries, travel expenses and other administrative costs allowed by TEX. TAX CODE 9351.101(f), only if each are directly attributable to work on programs, which promote tourism and the hotel and convention industry, and if each promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 9351. 101 (a). 2.3 Specific Restrictions on Use of Funds. (a) BUREAU agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE 9351.101(f) and 9351.108 (c) and (d). BUREAU shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in ~~2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) BUREAU shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of BUREAU funded by hotel tax revenue. This budget shall specifically identify proposed expenditures of hotel tax funds by BUREAU. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to BUREAU any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. eVB PY2006 HOT Fund Contract -- Page 3 (b) BUREAU acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in BUREAU with respect to the hotel tax funds paid by CITY to BUREAU under this Agreement. BUREAU shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE ~351.101(a), and in the budget as approved by CITY. 3.2 Separate Accounts. BUREAU shall maintain any hotel tax funds paid to BUREAU by CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the revenue source of any given expenditure. 3.3 Financial Records. BUREAU shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by BUREAU. These funds shall be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, BUREAU shall make such financial records available for inspection and review by the party making the request. BUREAU understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEx. GOy'r CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of the hotel tax funds, and within thirty days after the end of every contract quarter, BUREAU shall furnish to CITY: (1) a completed [mancial report , (2) a list of the expenditures made or copies of the invoice or receipts with regard to hotel tax funds pursuant to TEX. TAX CODE ~351.101(c), and (3) a copy of all financial records (e.g., copies offront and back cleared checks or bank statements, and other relevant documentation). BUREAU shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. BUREAU shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. BUREAU shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of BUREAU's Board of Directors, as well as any other meeting of any constituency of BUREAU at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006 and terminate at midnight on January 31, 2007. However, the program period shall commence on January 1, 2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. CVB PY2006 HOT Fund Contract -- Page 4 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse BUREAU for any contractual obligations of BUREAU undertaken by BUREAU in satisfactory performance of those activities specified in '11'112.1 and 2.2 above and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse BUREAU or to assume the performance of any contractual obligations of BUREAU for or under any contract entered into by BUREAU as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), BUREAU will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. BUREAU will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by BUREAU after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term ofthis Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of BUREAU; (b) The insolvency of BUREAU, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by BUREAU for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or BUREAU for more than thirty (30) days after written notice of such breach is given to the breaclting party by the other party; or CVE PY2006 HOT Fund Contract -- Page 5 (d) The failure of BUREAU to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, BUREAU agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by BUREAU with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that BUREAU enters into any arrangement, contractual or otherwise, with such other entity, person or organization, BUREAU shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. BUREAU shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. BUREAU shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and BUREAU shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. BUREAU shall not be considered a partner or joint venturer with CITY, nor shall BUREAU be considered nor in any manner hold itself out as an agent or official representative of CITY. 5.3 Indemnification. BUREAU AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY BUREAU OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF BUREAU, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. CVB PY2006 HOT Fund Contract -- Page 6 5.4 Assignment. BUREAU shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY BUREAU City of Denton 215 E. McKinney Denton, TX 76201 Denton Chamber of Commerce Denton Convention & Visitor Bureau Kim Phillips Vice President P.O. Box Drawer P Denton, Texas 76202-1719 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and BUREAU and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subj ect to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. CVE PY2006 HOT Fund Contract -- Page 7 5.12 Insurance. BUREAU shall, at a rnitrimum, provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 LiquorlDram Shop Liability for any event occumng on City-owned property where alcohol will be provided or served 4. $500,000 Business Automobile Liability on any owned, non-owned or hired vehicles CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by CITY. EXECUTED this ~ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: APPROV~D~A8'TetEflA::L--FORM: ,....--~~- By: JENNIFER WALTERS, CITY SECRETARY DENTON C ~ ATTEST: /APPROVED AS TO LEGAL FORM: By: Secretary By: CVB PY2006 HOT Fund Contract -- Page 8 Exhibit A Denton Chamber of Commerce Convention & Visitor Bureau ADVERTISING Print Advertising $ 64,000 Tourism Promotional Material 5,000 Brochures 10,000 Travel & Trade Shows 6,000 Tourism & PR Services 12,000 Special Projects 2,000 Denton Live Magazine 102,000 dentonlive.com 15,000 dentonlive.com annual hosting fee 3,600 ABA National Convention 5,000 $ 224,600 CVB GENERAL ADMINISTRATION Salaries and Benefits $ 116,800 Liability Insurance 700 Travel & Training 5,000 Memperships & Subscriptions 2,100 Computer Equipment 6,000 Copy Machine 500 Warehouse Storage 700 Desktop Copier Lease 750 Office Supplies 2,000 Telephone 8,000 Printing 1,000 Postage 4,500 Office Rent 14,055 $ 162,105 SPORTS ADVERTISING Convention & Trade Show $ 11,000 SPORTS ADMINISTRATION Salary and Benefits Travel & Training Memberships Printing Postage $ 56,900 5,000 750 1,500 500 $ 64,650 CONVENTION & GROUP MARKETING ADVERTISING Print Advertising Sales & Marketing Mission Trade Shows $ 8,000 20,000 7,000 $ 35,000 PAGE 2 CONVENTION & GROUP MARKETING ADMINISTRATION Salary and Benefits Travel & Training Memberhsips Printing $ 48,800 5,000 2,500 2,500 $ 58,800 TOTAL BUDGET $ 556,155 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an interlocal agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Courthouse-on-the-Square, the Bayless-Selby House and the African American Museums; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $95,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H01\county museum ord.DOC ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE IN SUPPORT OF THE COURTHOUSE- ON-THE-SQUARE, THE BAYLESS-SELBY HOUSE AND THE AFRICAN AMERICAN MUSEUMS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Tex. Tax Code S351.101(a) authorizes the City of Denton, Texas to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity to visit preserved historic sites and museums; and WHEREAS, the County of Denton, Texas is well equipped to perform those activities by its operation of the Courthouse on the Square, the Bayless-Selby House and the African American Musewns; and WHEREAS, Tex. Tax Code S351.101(c) authorizes the City of Denton, Texas to delegate by contract with the County of Denton, Texas, as a govenunental entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; and WHEREAS, both the City of Denton, Texas and the County of Denton, Texas have a secondary source of authority to enter into an interlocal cooperation agreement, pursuant to Chapter 791 of the Texas Government Code, as: the agreement is authorized by both govenunental bodies; the agreement states the purpose, terms, rights, and duties of the contracting parties; the consideration is being paid by City of Denton, Texas out of current revenues; the compensation is fair; and the services to be performed are "museum services" authorized under S791.003(3)(F) of the Texas Government Code, which each party is authorized to perform individually; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Mayor is hereby authorized to execute an interlocal agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Courthouse on the Square, the. Bayless-Selby House and the African American Musewns, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective irnmediately 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..AIIORNEY Page 2 AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY, TEXAS (COURTHOUSE ON THE SQUARE, THE BAYLESS-SELBY HOUSE AND THE AFRICAN AMERICAN MUSEUMS) (pY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and County of Denton, Texas, a governmental entity existing under the laws of the State of Texas, contracting on behalf of its Courthouse-on-the-Square, African American, and Bayless-Selby House Museums (collectively, the "MUSEUMS"): WHEREAS, TEX. TAX CODE 9351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant~ and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE 9351.10l(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as well as to engage in historical restoration and preservation projects and activities and WHEREAS, TEX. TAX CODE 9351.101(c) authorizes CITY to delegate by contract with MUSEUMS, as a governmental entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; and WHEREAS, MUSEUMS are well equipped to perform those activities; and WHEREAS, both CITY and MUSEUMS have a secondary source of authority to enter into this Agreement as an interlocal cooperation agreement, pursuant to Chapter 791 of the Texas Government Code, as: the Agreement is authorized by both governmental bodies; the Agreement states the purpose, terms, rights, and duties of the contracting parties; the consideration is being paid by CITY out of current revenues; the compensation is fair; and the services to be performed are "museum services" authorized under 9791.003(3)(F) of the Texas Government Code, which each party is authorized to perform individually; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and MUSEUMS agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by MUSEUMS under this Agreement, CITY agrees to pay to MUSEUMS a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to MUSEUMS sometimes herein referred to as the "agreed payments" or "hotel tax funds"). HOT Funds PY2006 Denton County Museums Page 1 1.2 Amount of Payments. (a) As used in this Agreement, the following tenns shall have the following specific meamngs: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day ofthe month following the close ofthe relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Afeement is in force. Contract quarters will end on March 31 st, June 30th, September 30t \ and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to MUSEUMS an amount of money in each contract year equal to the lesser amount of: Eight and Eighty-One One Hundredths percent (8.81 %) of the annual base payment amount, or the fixed contract amount of Ninety-Five Thousand Dollars ($95,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 8.81 % of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to MUSEUMS of those amounts specified in ~1.2, above, as determined by the hotel tax revenue collected. HOT Funds PY2006 Denton County Museums Page 2 (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding ofthis project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of MUSEUMS. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that MUSEUMS' expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to MUSEUMS of the agreed pa}TI1ents of hotel tax funds specified above, MUSEUMS agree to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as well as to engage in historical restoration and preservation projects' and activities to encourage tourists and convention delegates to visit preserved historic sites and museums, as authorized by TEX. TAX CODE 9351.101(a)(3) and (a)(5). Funds for any calendar year which are unused by midnight December 31st ofthat year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by MUSEUMS may be spent for day-ta-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 9351.101 (t), only if each such expenditure is directly attributable to work on programs, which promote tourism and the hotel and convention industry, and promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 9351.101 ( a). 2.3 Specific Restrictions on Use of Funds. (a) MUSEUMS agree to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE 9351.101(t) and 9351.108 (c) and (d). MUSEUMS shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in ~~2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. HOT Funds PY2006 Denton County Museums Page 3 III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) MUSEUMS shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of MUSEUMS in which the hotel tax funds shall be used by MUSEUMS. This budget shall specifically identify proposed expenditures of hotel tax funds by MUSEUMS. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to MUSEUMS any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) MUSEUMS acknowledge that I the approval of such budget by the Denton City Council creates a fiduciary duty in MUSEUMS with respect to the hotel tax funds paid by CITY to MUSEUMS under this Agreement. MUSEUMS shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE S351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. MUSEUMS shall maintain any hotel tax funds paid to MUSEUMS by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. MUSEUMS shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by MUSEUMS. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, MUSEUMS shall make such financial records available for inspection and review by the party making the request. MUSEUMS understand and accept that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GoV'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every contract quarter, MUSEUMS shall furnish to CITY: (1) a completed financial report , (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE S351.101(c), and (3) a copy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation), MUSEUMS shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. MUSEUMS shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. HOT Funds PY2006 Dehton County Museums Page 4 3.5 Notice of Meetings. MUSEUMS shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of MUSEUMS' Boards of Directors, as well as any other meeting of. any constituency of MUSEUMS, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006, and terminate at midnight on January 31, 2007. However, the program period shall commence on January 1, 2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse MUSEUMS for any contractual obligations of MUSEUMS undertaken by MUSEUMS in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse MUSEUMS, or to assume the performance of any contractual obligations of MUSEUMS, for or under any contract entered into by MUSEUMS as contemplated herein, shall not exceed 662/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), MUSEUMS will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. MUSEUMS will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by MUSEUMS after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good HOT Funds PY2006 Denton County Museums Page 5 faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any ofthe following events: (a) The termination ofthe legal existence of MUSEUMS; (b) The insolvency of MUSEUMS, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by MUSEUMS for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or MUSEUMS for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of MUSEUMS to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, MUSEUMS agree to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination ofthis Agreeq1ent. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by MUSEUMS with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that MUSEUMS enter into any arrangement, contractual or otherwise, with such other entity, person or organization, MUSEUMS shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. T AX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the" agreed payments and hotel tax funds. 5.2 Independent Contractor. MUSEUMS shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. MUSEUMS shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and MUSEUMS shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and HOT FlUlds PY2006 Denton County Museums Page 6 subcontractors. MUSEUMS shall not be considered a partner or joint venturer with CITY, nor shall MUSEUMS be considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. TO THE EXTENT AUTHORIZED BY LAW, MUSEUMS AGREE TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY MUSEUMS OF THOSE SERVICES CONTEMPLATED BY TillS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF MUSEUM, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. MUSEUMS shall not ~ssign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY MUSEUMS City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton County Courthouse-On- The Square, Bayless-Selby House Museums and the African American Museum Georgia Caraway, Director 110 W. Hickory St., Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and MUSEUMS and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, HOT Funds PY2006 Denton County Museums Page 7 notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these trapsactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms ofthe section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. MUSEUMS shall provide insurance as follows: 1. Statutory Workers' Compensation ($100,000/$500,000/$100,000) and Employers' Liability Proof of coverage shall be submitted prior to any payment by CITY. 5.13 Waiver of Immunity for Suit to Enforce. By executing and authorizing the execution of this contract, DENTON COUNTY, TEXAS expressly waives immunity from any suit brought by CITY for the enforcement of the provisions contained herein, and further expressly waives the presentment required of Tex. Loc. Gov't Code sec. 89.004 as a prerequisite to such suit. . EXECUTED this _ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: APPROVED AS TO LEGAL FORM: ~ By: / DWIN M..SNYDER, CITY ATTORNEY By: JENNIFER WALTERS, CITY SECRETARY HOT Funds PY2006 Denton County Museums Pa~e 8 ATTEST: DENTON COUNTY, TEXAS APPROVED AS TO LEGAL FORM: By: ~ fYlrGnU ~ctary HOT Funds PY2006 Denton County Museums Page 9 Exhibit A Denton County Museums Couthouse on the Square, Bayless-Selby House and African American Museums ADVERTISING Block Ads $ 2,200 Brochures 8,000 Newspaper 11,000 Magazines 8,750 $ 29,950 HISTORICAL Archival Supplies Referemce Books Furnishings & Equipment Tourism Director Salary Curator of Collections Salary Historical Park Manager Salary Contract Labor Membership Dues Office Supplies $ 5,000 500 8,024 10,000 10,000 28,761 2,000 265 500 $ 65,050 TOTAL BUDGET $ 95,000 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Community Theatre, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $16,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H0T\DCTOrd.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COMMUNITY THEATRE~ INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Community Theatre, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK., MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LE . EDW~IN M. sNVDER, CITY ATTO , -.---- .- ..BY:'/ // ( AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COMMUNITY THEATRE, INC. (pY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Community Theatre, Inc., a legal entity incorporated under the laws ofthe State of Texas (the "THEATRE"): WHEREAS, TEX. TAX CODE ~351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE 9351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, THEATRE is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE ~351.101(c) authorizes CITY to delegate by contract with THEATRE, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and THEATRE agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by THEATRE under this Agreement, CITY agrees to pay to THEATRE a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to THEATRE sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanmgs: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 35 I .002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. DCT HOT Funding PY2006 - Page 1 (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31 S\ June 30th, September 30t , and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and . all attachments hereto, CITY shall pay to. THEATRE an amount of money in each contract year equal to the lesser amount of: One and Forty-Eight One Hundredths percent (1.48%) of the annual base payment amount, or the fixed contract amount of Sixteen Thousand Dollars ($16,000). This amount will be divided into quarterly payments equal to 25% ofthe annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated. for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 1.48% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt ofthe required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to THEATRE of those amounts specified in ~1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be pai.d upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of THEATRE. DCT HOT Funding PY2006 - Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that THEATRE's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to THEATRE of the agreed payments of hotel tax funds specified above, THEATRE agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as authorized by TEX. TAX CODE 9351.10l(a) (3). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by THEATRE may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101 (t), only if each such expenditure is directly attributable to work on programs which promote tourism and the hotel and convention industry, and promotes at least one ofthe six statutory purposes enumerated within TEX. TAX CODE 351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of THEATRE for which hotel tax funds may be used shall not exceed that portion of THEATRE's administrative costs actually incurred in conducting the activities specified in ~2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. III. RECORD KEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) THEATRE shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of THEATRE in which the hotel tax funds shall be used by THEATRE. This budget shall specifically identify proposed expenditures of hotel tax funds by THEATRE. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to THEATRE any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a OCT HOT Funding PY2006 - Page 3 breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b ) THEATRE acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in THEATRE with respect to the hotel tax funds paid by CITY to THEATRE under this Agreement. THEATRE shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE ~351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. THEATRE shall maintain any hotel tax funds paid to THEATRE by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. THEATRE shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by THEATRE. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, THEATRE shall make such financial records available for inspection and review by the party making the request. THEATRE understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GoV'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to CITY, THEATRE shall furnish to CITY: (I) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE ~351.101(c), and (3) a copy of all financial records (e.g., copies of front and back of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either detennined or approved by the City Manager or designate. THEATRE shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. THEATRE shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of THEATRE's Board of Directors, as well as any other meeting of any constituency of THEATRE, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006 and terminate at midnight on January 31,2007. However, the program period shall commence on January 1,2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 35] of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for DCT HOT Funding PY2006 - Page 4 funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse THEATRE for any contractual obligations of THEATRE undertaken by THEATRE in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3 .1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse THEATRE, or to assume the performance of any contractual obligations of THEA TRE, for or under any contract entered into by THEATRE as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon tennination pursuant to ~4.2(a), THEATRE will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. THEATRE will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by THEATRE after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term ofthis Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination ofthe legal existence of THEATRE; (b) The insolvency of THEATRE, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by THEATRE for the benefit of creditors; DCT HOT Funding PY2006 - Page 5 (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or THEATRE for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of THEATRE to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, THEATRE agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by THEATRE with another private entity, person, or organi- zation for the performance of those services described in ~2.l above. In the event that THEATRE enters into any arrangement, contractual or otherwise, with such other entity, person or organization, THEATRE shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure ofthe agreed payments and hotel tax funds. 5.2 Independent Contractor. THEATRE shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. THEATRE shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organIzations performing the same, and THEATRE shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. THEATRE shall not be considered a partner or joint venturer with CITY, nor shall THEATRE be considered, nor in any manner hold itself out as, an agent or official representative of CITY. ' 5.3 Indemnification. THEATRE AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR:INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THEATRE OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN DCT HOT Funding PY2006 - Page 6 WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF THEATRE, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. THEATRE shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY THEATRE City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Community Theatre, Inc. A TTN: Eric Bailey P.O. Box 1931 Denton, Texas 76202-1931 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and THEATRE and their respective successors and assigns. 5.7 Application of Laws. All tenus, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specifi~ terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. DCT HOT Funding PY2006 - Page 7 5.12 Insurance. THEATRE shall provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this ~ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR . By: .. ATTEST: By: JENNIFER WALTERS, CITY SECRETARY ATTEST: ~. ptrl-I eG' III A-6 U/f-tteU / APPROVED AS TO LEGAL FORM: By: Secretary By: DCT HOT Funding PY2006 - Page 8 Denton Community Theatre 2006 ADVERTISING Magazines Cable Website Print Advertising $ 6,000 4,000 4,000 2,000 $ 16,000 TOTAL BUDGET $16,000 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Festival Foundation for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $75,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H01\festival foundation ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FESTIVAL FOUNDATION FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Festival Foundation for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION II. 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. S Y AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FESTIVAL FOUNDATION (PY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREE11ENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Festival Foundation, Inc. a legal entity incorporated under the laws of the State of Texas (the "FOUNDATION"): WHEREAS, TEX. TAX CODE ~351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEx. TAX CODE g351.101(a) authorizes the CITY to use revenue from its municipal' hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the FOUNDATION is well equipped to perform those activities; and WHEREAS, TEx. TAX CODE g351.101(c) authorizes the CITY to delegate by contract with the FOUNDATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the FOUNDATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the FOUNDATION under this Agreement, the CITY agrees to pay to the FOUNDATION a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the FOUNDATION sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) mearungs: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Festival Foundation HOT Funding PY2006 - Page 1 Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attomeys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) comt costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31st, June 30th, September 30t\ and December 31 5t of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to FOUNDATION an amount of money in each contract year equal to the lesser amount of Six and Ninety-Five One Hundredths percent (6.95%) of the annual base payment amount or the fixed contract amount of Seventy Five Thousaiid Dollars ($75,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 6.95% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the FOUNDATION of those amounts specified in ~L2, above, as detennined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. Festival Foundation HOT Funding PY2Q06 - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the FOUNDATION. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits ofthe CITY. (c) CITY may withhold further allocations if CITY detennines that FOUNDATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the FOUNDATION of the agreed payments of hotel tax funds specified above, the FOUNDATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as well as the promotion of tourism through the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major arts forms, as authorized by TEx. TAX CODE ~351.101(a). FUllds for any calendar year which are unused by midnight December 31 st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from the CITY by the FOUNDATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), only if each are directly attributable to work on programs which promote tourism and the hotel and convention industry, and if each promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the FOUNDATION for which hotel tax funds may be used shall not exceed that portion of the FOUNDATION's administrative costs actually incurred in conducting the activities specified in ~2.l above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion oflocal tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. Festival Foundation HOT Funding PY2006 - Page 3 .~ '. Ill. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The FOUNDATION shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the FOUNDATION funded by hotel tax revenues. This budget shall specifically identify proposed expenditures of hotel tax funds by the FOUNDATION. In other words, the CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. The CITY shall not pay to the FOUNDATION any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for . tennillation of this Agreement as stated in paragraph 4.2. (b) The FOUNDATION aclrnowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the FOUNDATION with respect to the hotel tax funds paid by the CITY to the FOUNDATION under this Agreement. The FOUNDATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE S 3 51.1 0 1 ( a), and in the budget as approved by the CITY. 3.2 Separate Accounts. The FOUNDATION shall maintain any hotel tax funds paid to the FOUNDATION by the CITY in a separate account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The FOUNDATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the FOUNDATION. These funds shall be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. FOUNDATION understands and acc.epts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOy'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds and within thirty days after the end of every contract quarter, FOUNDATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE 9351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The FOUNDATION shall respond promptly to any request from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. Festival Foundation HOT Funding PY2006 - Page 4 _ _ L. _'.. . _ 3.5 Notice of Meetings. The FOUNDATION shall give the City Manager of the CITY, or his designate, reasonable advance written notice of the time and place of all meetings of FOUNDATION's Board of Directors, as well as any other meeting of any constituency of the FOUNDATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the FOUNDATION to give notice of any executive session of the Executive Committee of the FOUNDATION. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1,2006 and terminate at midnight on January 31,2007. However, the program period shall commence on January 1,2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be tenninated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Se9tion 4.2(a), the CITY agrees to reimburse the FOUNDATION for any contractual obligations of the FOUNDATION undertaken by the FOUNDATION in satisfactory performance of those activities specified in ~~2.l and 2.2 above and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in -U~2.l and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the FOUNDATION or to assume the performance of any contractual obligations of the FOUNDATION for or under any contract entered into by the FOUNDATION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), the FOUNDATION will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The FOUNDATION will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the Festival Foundation HOT Funding PY2006 - Page 5 _. . "+ ~L FOUNDATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination ofthe legal existence of the FOUNDATION; (b) The insolvency of the FOUNDATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the FOUNDATION for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the FOUNDATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of the FOUNDATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is tenninated pursuant to ~~4.3 or 4.4, FOUNDATION agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the FOUNDATION with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that the FOUNDATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the FOUNDATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE eh. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The FOUNDATION shall operate as an independent contractor as to all services to be performed under th.is Agreement and not as an officer. agent, servant, or employee of the CITY. The FOUNDA nON shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same Festival Foundation HOT Funding PY2006 - Page 6 and the FOUNDATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The FOUNDATION shall not be considered a partner or joint venturer with the CITY, nor shall the FOUNDATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE FOUNDATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE FOUNDATION OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON C0MJ\10N, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF FOUNDATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment The FOUNDATION shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY FOUNDATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Festival Foundation, Inc. Carol Short Festival Coordinator P.O. Box 2104 Denton, Texas 76202-2104 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the FOUNDATION and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. Festival Foundation HOT Funding PY2006 - Page 7 5.9 Duplicate Originals. This Agreement is exec~ted in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. The FOUNDATION shall provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this _ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: EDWIN M. S By: JENNIFER WALTERS, CITY SECRETARY DENTON F IV AL FOUNDATION, INC. By: ~ c;zJfin;t Festival Foundation HOT Funding PY2006 - Page 8 Chainnan/Director ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary By: F:lsll"",d\deptILGl.\O... DocurrmISIContrnctsl03\HOT\FestivaL Foundtllioodoc Festival Foundation HOT Funding PY2006 - Page 9 Denton Festival Foundation, Inc Denton Arts & Jazz Festival ADVERTISING Newspaper Magazines Commercials/Photography Brochures Tabloids $ 5,000 10,000 8,000 6,000 6,000 $ 35,000 ART Musicians $ 40,000 TOTAL BUDGET $ 75,000 - Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Greater Denton Arts Council for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $115,000 for FY 2005-06 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\On:linances\05\H01\GDAC ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE GREATER DENTON ARTS COUNCIL FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTNE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Greater Denton Arts Council for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYD ..___--"J.- ..",~".,.,,-,~ ..,..-.,,/' .../''''' ~-- ;c AGREEMENT BETWEEN THE CITY OF DENTON AND THE GREATER DENTON ARTS COUNCIL (PY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Greater Denton Arts Council, a non-profit corporation incorporated under the laws of the State of Texas (the "GDAC"): WHEREAS, TEX. TAX CODE 935 I .002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the city of Denton ofseven percent (7%); and WHEREAS, TEX. TAX CODE g351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, GDAC is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE S351.10l(c) authorizes CITY to delegate by contract with GDAC; as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and GDAC agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by GDAC under this Agreement, CITY agrees to pay to GDAC a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to GDAC sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanings: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code g351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. GDAC PY2006 HOT Funds Contract - Page 1 (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 315\ June 30th, September 30th, and December 315t of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to GDAC an amount of money in each contract year equal to the lesser amount of: Ten and Sixty-Six One Hundredths percent (10.66%) of the annual base payment amount, or the fixed contract amount of One Hundred Fifteen Thousand Dollars ($115,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. Th~ fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 10.66% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to GDAC of those amounts specified in '11.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports, and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. GDAC PY2006 HOT Funds Contract - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility ofGDAC. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that GDAC's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to GDAC of the agreed payments of hotel tax funds specified above, GDAC agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity and by the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms. Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by GDAC may be spent for day-to-day operations, office supplies, salaries, travel expenses and other administrative costs allowed by TEX. TAX CODE g351.101(f), only if each such expenditure is directly attributable to work on programs which promote tourism and the hotel and convention industry, and promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE g351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) GDAC agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE g351.101(f) and g351.108 (c) and (d). GDAC shall not utilize hotel tax funds for any expenditure, which has not been specifically documented to satisfY the purposes set forth in ~~2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. GDAC PY2006 HOT Funds Contract - Page 3 III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) GDAC shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations ofGDAC in which the hotel tax funds shall be used by GDAC. This budget shall specifically identify proposed expenditures of hotel tax funds by GDAC. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to GDAC any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to . submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination ofthis Agreement as stated in paragraph 4.2. (b) GDAC acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in GDAC with respect to the hotel tax funds paid by CITY to GDAC under this Agreement. GDAC shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE 9351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. GDAC shall maintain any hotel tax funds paid to GDAC by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. GDAC shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by GDAC. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, GDAC shall make such financial records available for inspection and review by the party making the request. GDAC understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Texas Public Information Act, TEX. GOY'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every contract quarter, GDAC shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE 9351.1 DI(c), and (3) a copy of all financial records (e.g., copies affront and back cleared checks or bank statements, and other relevant documentation). GDAC shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. GDAC shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. GDAC PY2006 HOT Funds Contract - Page 4 3.5 Notice of Meetings. GDAC shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of GDAC's Board of Directors, as well as any other meeting of any constituency of GDAC, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006, and terminate at midnight on January 31, 2007. However, the program period shall commence on January 1, 2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pwsuant to Section 4.2(a), CITY agrees to reimburse GDAC for any contractual obligations undertaken by GDAC in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full tenn of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse GDAC, or to assume the performance of any contractual obligations of GDAC, for or under any contract entered into by GDAC as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), GDAC will provide CITY: I) Within 10 business days from the temlination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget, the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. GDAC will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by GDAC after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in GDAC PY2006 HOT Funds Contract - Page 5 the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence ofGDAC~ (b) The insolvency of GDAC, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by GDAC for the benefit of creditors~ (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or GDAC for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party~ or (d) The failure ofGDAC to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to -,r-,r4.3 or 4.4, GDAC agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by GDAC with another private entity, person, or organization for the performance of those services described in -,rZ.l above. In the event that GDAC enters into any arrangement, contractual or otherwise, with such other entity, person or organization, GDAC shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. GDAC shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. GDAC shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and GDAC PY2006 HOT Funds Contract - Page 6 GDAC shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. GDAC shall not be considered a partner or joint venturer with CITY, nor shall GDAC be considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. GDAC AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY, OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY GDAC OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF GDAC, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. GDAC shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 ,Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY GDAC City of Denton 215 E. McKiImey Denton, TX 76201 Greater Denton Arts Council ATTN: Julie Schamberg 207 South Bell Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and GDAC and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this GDAC PY2006 HOT Funds Contract - Page 7 . ' Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. GDAC shall, at a minimum, provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City- owned property where alcohol will be provided or served 4. $500,000 Business Automobile Liability on any owned, non-owned or hired vehicles CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by CITY. EXECUTED this _ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR GDAC PY2006 HOT Funds Contract - Page 8 , . ATTEST: By: JENNIFER WALTERS, CITY SECRETARY BY:~~ resident ATTEST: APPROVED AS TO LEGAL FORM: B~~"- retary By: GDAC PY2006 HOT Funds Contract. Page 9 Greater Denton Arts Council 2006 ADVERTISING Direct Promotion Website Salary $ 2,000 12,000 $ 14,000 CONVENTION CENTER Convention Salary $ 16,000 ART Exhibitions and Programs Exhibitions and Programs Salary Administration Salary Office Supplies $ 13,000 20,000 47,000 5,000 $ 85,000 TOTAL BUDGET $ 115,000 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton County Historical Commission, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $12,500 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\OUf Documents\Ordinances\05\HOT\HistoricaI Commission.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY HISTORICAL COMMISSION, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton County Historical Commission for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION II. 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. SNYDE;R,.-GI-T Y ..,",....,,_..- AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY HISTORICAL COMMISSION, INC., FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE IN SUPPORT OF THE DENTON COUNTY HISTORICAL COMMISSION~ INC. (pY2006) THIS AGREEMENT is made between the City of Denton, Texas, a municipal corporation (the "CITY"), and THE DENTON COUNTY mSTORICAL COMMISSION, INC., a legal entity incorporated under the laws of the State of Texas (the "DCHC"): WHEREAS, TEX. TAX CODE ~351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE ~351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry, by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its. vicinity; and WHEREAS, DCHC is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE g351.101(c) authorizes CITY to delegate by contract with DCHC, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and DCHC agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by DCHC under this Agreement, CITY agrees to pay to DCHC a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to DCHC sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) meanmgs: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City HOT Funds PY2006 Denton County Historical Conunission - Page 1 Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and, (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Af"eement is in force. Contract quarters will end on March 31 S\ June 30th, September 30t , and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to DCHC an amount of money in each contract year equal to the lesser amount of: One and Sixteen One Hundredths percent (1.16%) of the annual base payment amount, or the fixed contract amount of Twelve Thousand Five Hundred Dollars ($12,500). This amount will be divided into quarterly payments equal to 25% ofthe annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 1.16% of the base payment amount, whichever is less. Each quarterly payment is subj ect to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" Sl1all mean payments by CITY to DCHC of those amounts specified in ~1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly fmancial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility ofDCHC. HOT Funds PY2006 Denton County Historical Commission - Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that DCHC expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to DCHC of the agreed payments of hotel tax funds specified above, DCHC agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as well as activities to encourage tourists and convention delegates to visit preserved historic sites and museums, as authorized by TEx. TAX CODE ~351.101(a)(3) and (a)(5). Funds for any calendar year which are unused by midnight December 31 st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by DCHC may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE ~351.101(f), only if each such expenditure is directly attributable to work on programs, which promote tourism and the hotel and convention industry, and promotes at least one ofthe six statutory purposes enumerated within TEX. TAX CODE ~351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) DCHC agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE ~351.101(t) and 9351.108 (c) and (d). DCHC shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in ~~2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) DCHC shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of DCHC in which the hotel tax funds shall be used by DCHC. This budget shall specifically identify proposed expenditures of hotel tax funds by DCHC. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds in the separate account relating to hotel tax funds. CITY shall not pay to DCHC any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such HOT Funds PY2006 Denton County Historical Commission - Page 3 respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for tennination of this Agreement as stated in paragraph 4.2. ' (b) DCHC acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in DCHC with respect to the hotel tax funds paid by CITY to DCHC under this Agreement. DCBC shall expend hotel tax funds only in the marmer and for the purposes specified in this Agreement, TEX. TAX CODE 9351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. DCHC shall maihtain any hotel tax funds paid to DCHC by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. DCHC shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by DCHC. These funds are required to be classified as restricted funds for audited [mancial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, DCHC shall make such [mancial records available for inspection and review by the party making the request. DCHC understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOy'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every contract quarter, DCHC shall furnish to CITY: (1) a completed [mancial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE 9351.101(c), and (3) a copy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation), DCHC shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. DCHC shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. DCHC shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of DCHC Boards of Directors, as well as any other meeting of any constituency of DCHC, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006 and terminate at midnight on January 31,2007. However, the program period shall commence on January 1,2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program 'guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for HOT Funds PY2006 Denton County Historical Commission - Page 4 funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse DCHC for any contractual obligations of DCHC undertaken by DCHC (or permitted subcontractor) in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3 .1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance ofthose services contemplated in ~~2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse DCHC, or to assume the performance of any contractual obligations of DCHC, for or under any contract entered into by DCHC as contemplated herein, shall not exceed 662/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), DCHC will provide CITY: 1) Within 10 business days from the termination notification, a short":term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 1 0 business days after receipt by CITY. If formal approval is not given within 1 0 business days, the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget, the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; and, 4) a final accounting of all expenditures and tax funds on the day of termination. DCHC will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by DCHC after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term ofthis Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any ofthe following events: (a) The termination ofthe legal existence ofDCHC; (b) The insolvency of DCHC, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by DCHC for the benefit of creditors; HOT Funds PY2006 Denton County Historical Commission - Page 5 (c) The continuation ofa breach of any: of the terms or conditions of this Agreement by any party for more than thirty (30) days after written notice of such breach is given to the breaclting party by the other party; or (d) The failure of DCHC to submit a'financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial detemlination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-temlinating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to -,r-,r4.3 or 4.4, DCHC agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by DCHC with another private entity, person, or organization for the performance of those services described in -,r2.1 above. In the event that DCHC enters into any arrangement, contractual or otherwise, with such other entity, person or organization, DCHC shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tro:: funds. 5.2 Independent Contractor. DCHC shall operate as an independent contractor as to all services to be performed under this Agreement, and not as an officer, agent, servant, or employee of CITY. DCHC shall have exclusive control of it~ operations and performance of services hereunder, and such persons, entities, or organizations perfomling the same, and DCHC shall be solely responsible for the acts and omissions of' its directors, officers, employees, agents, and subcontractors. DCHC shall not be considered a partner or joint venturer with CITY, nor shall DCHC be considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. TO THE EXTENT AUTHORIZED BY LAW, DCHC AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFF1CERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY DCHC OF THOSE SERVICES CONTEMPLATED BY TillS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, HOT Funds PY2006 Denton County Historical Commission - Page 6 CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF DCHC, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. DCHC shall not assign this Agreement without ftrst obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute. ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail. certifted mail. return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY DCHC City Manager City of Denton 215 E. McKinney Denton. TX 76201 Denton County Historical Commission. Inc. ATTN: Tom Reedy 110 W. Hickory St. Denton. Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every right. duty. obligation. and liability set forth herein shall be binding upon and inure to the beneftt and obligation of CITY and DCHC and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions. and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms ofthe section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. HOT Funds PY2006 Denton County Historical Conunission - Page 7 5.12 Insurance. DCHC shall provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this _ day of ,2005. THE CITY OF DENTON, TEXAS By: ATTEST: EULINE BROCK, MAYOR --_..---_............._---.......~._-- AP.:.~~OVED-As TO LEGAL FORM~ . c' . .--.....--.----------, ~. .., /~ By: JENNIFER WALTERS, CITY SECRETARY //- DENTON / COUNTY COMMISSION, INe. HISTORICAL \\\\\tlll ' ",,," ""\\'~t.B1S Co "",,,''" By: .$' ,';:..\J .........." ('l-9J.~ .::::-c.~...)~' ,#,.~ .::-.............0........ .....If' O~ ::;;~..'" , ...~~ 2 ~ f\* ~ t:I S APPROVED AS TO LEGAL FORM' =0- ~m= . ~LJ:r ~ =~= ~ (f)~ :~~ .;;. '?-'" , ,~~ ;:: ~:.. .....~). "~~'''' ..,\"",~ .# ..-:...."../ '..re....." <J ~ ~..;-? ~ AI"'\\ '!oo.'''' F- tf\ /I '/1 rr ~,~ ,\,,,, By:[' ~-1-4 (. "'fllllllll\\\~ ~ ATTEST: HOT Funds PY2006 Denton County Historical Commission - Page 8 Denton County Historical Commission John B. Denton Days ADVERTISING Texas Monthly Texas Highways True West AAA Journey Heritage Quest Everton's Genealogical Helper $ 8,000 1,460 1,450 1,350 120 120 $ 12,500 TOTAL BUDGET $ 12,500 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $8,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H0T\holiday festival ord.DOC ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON HOLIDAY FESTIVAL ASSOCIATION, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDEB.",_,cr:fV ~..",,--.,.....,.. B -~\ AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON HOLIDAY FESTIV AL ASSOCIATION, INC. (pY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Holiday Festival Association, Inc., a legal entity incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, TEX. TAX CODE g351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax. ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE S351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, ASSOCIATION is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE S351.101(c) authorizes CITY to delegate by contract with ASSOCIATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by ASSOCIATION under this Agreement, CITY agrees to pay to ASSOCIATION a portion of the hotel tax: revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to ASSOCIA nON sometimes herein referred to as the "agreed payments" or "hotel tax: funds"). 1.2 Amount of Payments. (a) meamngs: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax: at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Holiday Festival HOT Funding PY2006 - Page 1 - Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close ofthe relevant fiscal year. (iii) The term "base pa}1l1ent amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during fiscal year 2005, less: (1) attorney and auditing costs incurred during such period for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Afeement is in force. Contract quarters will end on March 31S\ June 30th, September 30t , and December 31 sl of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of Seventy-Four One Hundredths percent (0.74%) ofthe annual base payment amount, or the fixed contract amount of Eight Thousand Dollars ($8,000). This amount will be paid in one lump sum on or before July 25, 2005. 1.3 Dates of Payments. (a) The term "payments" shall mean payments by CITY to ASSOCIATION of those amounts specified in '[1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25111 day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of ASSOCIATION. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. Holiday Festival HOT Funding PY2006 - Page 2 (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to ASSOCIATION of the agreed payments of hotel tax funds specified above, ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by TEX. TAX CODE ~351.101(a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by ASSOCIATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), and only if each such expenditure is directly attributable to work on programs which promote tourism and the hotel and convention industry, and promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 351. 101 (a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of ASSOCIATION for which hotel tax funds may be used shall not exceed that portion of ASSOCIATION's administrative costs actually incurred in conducting the activities specified in ~2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) ASSOCIATION shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "An) as approved by the City Council for each calendar year, for such operations of ASSOCIATION in which the hotel tax funds shall be used by ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by ASSOCIATION. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax. CITY shall not pay to ASSOCIATION any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. Holiday Festival HOT Funding PY2006 - Page 3 (b) ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in ASSOCIATION with respect to the hotel tax funds paid by CITY to ASSOCIATION under this Agreement. ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEx. TAX CODE 9351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. ASSOCIATION shall maintain any hotel tax funds paid to ASSOCIATION by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, ASSOCIATION shall make such financial records available for inspection and review by the party making the request. ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Texas Public Information Act, TEX. GOy'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to CITY, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE 9351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. ASSOCIATION shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. ASSOCIATION shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of ASSOCIATION, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1,2006, and terminate at midnight on January 31,2007. However, the program period shall commence on January 1,2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. Holiday Festival HOT Funding PY2006 - Page 4 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse ASSOCIA nON for any contractual obligations of ASSOCIA nON undertaken by ASSOCIATION in satisfactory performance of those activities specified in -,r-,r2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in -,r3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~-,r2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse ASSOCIATION, or to assume the performance of any contractual obligations of ASSOCIATION, for or under any contract entered into by ASSOCIATION as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), ASSOCIATION will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. ASSOCIATION will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term ofthis Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of ASSOCIATION; (b) The insolvency of ASSOCIATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by ASSOCIA nON for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or Holiday Festival HOT Funding PY2006 - Page 5 (d) The failure of ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by ASSOCIATION with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, ASSOCIATION shall :cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure ofthe agreed payments and hotel tax funds. 5.2 Independent Contractor. ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. ASSOCIATION shall not be considered a partner or joint venturer with CITY, nor shall ASSOCIA TION'be considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. ASSOCIATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY ASSOCIATION OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. Holiday Festival HOT Funding PY2006 - Page 6 5.4 Assignment. ASSOCIATION shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Georgia Caraway Denton Holiday Festival Foundation, Inc. P.O. Box 2765 Denton, Texas 76202-2765 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and ASSOCIATION and theirrespective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of CITY of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. Holiday Festival HOT Funding PY2006 - Page 7 EXECUTED this _ day of ATTEST: ,2005. By: JENNIFER W ALTERS, CITY SECRETARY ATTEST: By:~r~ THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR APPROVED AS TO LEGAL FORM: DENTON HOLID ASSOCIATION, INe. FESTIVAL .I / By: R?~ Chainnan/Director APPROVED AS TO LEGAL FORM: By: Holiday Festival HOT Funding PY2006 - Page 8 Denton Holiday Festival Association, Inc. Denton Holiday Lighting Festival ADVERTISING Newspaper eVB Coops $ 5,000 3,000 $ 8,000 TOTAL BUDGET $ 8,000 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Central Business District Association of Denton, Texas, dba Denton Main Street Association for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This association is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $14,000 for FY 2005-06 and has been included in the Annual Program of Services. submitted: 4;.- " . , ~' : Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H0T\main street ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE CENTRAL BUSINESS DISTRICT ASSOCIATION OF DENTON, TEXAS, d/b/a DENTON MAIN STREET ASSOCIATION FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Central Business District Association of Denton, Texas, d/b/a Denton Main Street Association for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYD~;erTY'ATTORNEY ...-'--- ~ AGREEMENT BETWEEN THE CITY OF DENTON AND THE CENTRAL BUSINESS DISTRICT ASSOCIATION OF DENTON, TEXAS, d/b/a DENTON MAIN STREET ASSOCIATION (PY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE TillS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Central Business District Association of Denton, Texas, Inc., a legal entity incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, TEX. TAX CODE ~351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE ~351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, ASSOCIATION is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE ~351.101(c) authorizes CITY to delegate by contract with ASSOCIATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by ASSOCIATION under this Agreement, CITY agrees to pay to ASSOCIATION a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to ASSOCIATION sometimes hereiri referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) mearungs: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Main Street HOT Funding PY2006 - Page 1 Ordinance. Hotel tax revenue will .include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (I) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Areement is in force. Contract quarters will end on March 31st, June 30th, September 30t , and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of: One and Thirty One Hundredths percent (1.30%) of the annual base payment amount, or the fixed contract amount of Fourteen Thousand Dollars ($14,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 1.30% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to ASSOCIATION of those amounts specified in ~1.2, above, as detennined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt ofthe required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding ofthis program beyond the current contract period. Any. future funding is solely the responsibility of ASSOCIATION. Main Street HOT Funding PY2006 - Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to ASSOCIATION of the agreed payments of hotel tax funds specified above, ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by TEX. TAX CODE ~351.10l(a) (3). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixt~ (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by ASSOCIATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), only if each such expenditure is directly attributable to work on programs which promote tourism and the hotel and convention industry, and promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 35 1. 101 (a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of ASSOCIATION for which hotel tax funds may be used shall not exceed that portion of ASSOCIATION's administrative costs actually incurred in conducting the activities specified in ~2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion oflocal tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) ASSOCIATION shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of ASSOCIATION in which the hotel tax funds shall be used by ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by ASSOCIATION. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to ASSOCIATION any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizmg the expenditure of funds. Failure to submit an Main Street HOT Funding PY2006 - Page 3 annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination ofthis Agreement as stated in paragraph 4.2. (b ) ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in ASSOCIATION with respect to the hotel tax funds paid by CITY to ASSOCIATION under this Agreement. ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE ~351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. ASSOCIA nON shall maintain any hotel tax funds paid to AS SOCIA TION by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, ASSOCIATION shall make such financial records available for inspection and review by the party making the request. ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Texas Public Information Act, TEX. Goy'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to CITY, ASSOCIATION shall furnish to CITY: (I) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE g351.lOl(c), and (3) a copy of all financial records (e.g.. copies of front and back of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. ASSOCIATION shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. , 3.5 Notice of Meetings. ASSOCIATION shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of ASSOCIATION, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term ofthis Agreement shall conunence on January I, 2006, and terminate at midnight on January 31, 2007. However, the program period shall conunence on January 1,2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for Main Street HOT Funding PY2006 - Page 4 funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination ofthe Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party,.with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse ASSOCIATION for any contractual obligations of ASSOCIATION undertaken by ASSOCIATION in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3 .1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~~2.l and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse ASSOCIATION or to assume the performance of any contractual obligations of ASSOCIATION, for or under any contract entered into by the ASSOCIA TIION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), ASSOCIATION will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. ASSOCIATION will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by the THEATRE after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination ofthe legal existence of ASSOCIATION; (b) The insolvency of ASSOCIATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by ASSOCIATION for the benefit of creditors; Main Street HOT Funding PY2006 - Page 5 (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract tenn, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by ASSOCIATION with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, ASSOCIATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. ASSOCIATION shall not be considered a partner or joint venturer with CITY, nor shall ASSOCIA TIONbe considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. THE THEATRE AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE THEATRE OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF Main Street HOT Funding PY2006 - Page 6 NEGLIGENT OR INTENTIONAL ACTS OF THEATRE, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. ASSOCIA nON shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Main Street Association A TTN: Christine Gossett 101 S. Locust, Ste. #500 Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and ASSOCIATION and their respective successors and assigns. 5.7 Application of Laws. All tenns, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial detenninations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, pluase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not ~ffect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. Main Street HOT Funding PY2006 - Page 7 5.12 Insurance. ASSOCIATION shall provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this _ day of , 2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: APPROVED ASTQ-l:;E(JA:I::; ---- By: JENNIFER WALTERS, CITY SECRETARY DISTRICT TEXAS, INC. By: ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary By: Main Street HOT Funding PY2006 - Page 8 Exhibit A Denton Main Street Association Dog Days of Summer Arts Antiques & Autos Retial Tourism ADVERTISING Brochures Dog Days $ 800 AA&A 800 Walking Tour 600 Print Advertising Dog Days $ 1,700 AA&A 2,400 Retail Tourism 1,500 Radio Dog Days $ 300 AA&A 300 Visitor Guide $ 5,600 $ 14,000 TOTAL BUDGET $ 14,000 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the North Texas State Fair Association for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $60,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\H01\NTSF ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE NORTH TEXAS STATE FAIR ASSOCIATION FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the North Texas State Fair Association for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LE : EDWIN ~~/s:NYDER:' CITY ATTORNE ,./'" AGREEMENT BETWEEN THE CITY OF DENTON AND THE NORTH TEXAS STATE FAIR ASSOCIATION (PY2006) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the North Texas State Fair Association, a non-profit corporation incorporated under the laws of the State of Texas (the "ASSOCIATION'): WHEREAS, TEX. TAX CODE 9351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE 9351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, ASSOCIATION is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE 9351.101(c) authorizes CITY to delegate by contract with AS SOCIA TION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by ASSOCIATION under this Agreement, CITY agrees to pay to ASSOCIATION a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to ASSOCIATION sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanings: (i) The term "hotel tax revenue" shall mean the gross monies collected and recei ved by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax North Texas State Fair PY2006 HOT Funds ~ Page 1 ~ Code g351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The tenn "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The tenn "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31 st, June 30th, September 30th, and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of Five and Fifty-Six One Hundredths percent (5.56%) of the annual base payment amount, or the fixed contract amount of Sixty Thousand Dollars ($60,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid rem~inder of 5.56% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to ASSOCIATION of those amounts specified in ,,-r1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. North Texas State Fair PY2006 HOT Funds - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of ASSOCIATION. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to ASSOCIATION of the agreed payments of hotel tax funds specified above, ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by TEX. TAX CODE ~351.101(a). Funds for any calendar year which are unused by midnight December 31 sl of that year shall be refunded to CITY within sixty (60) days. 2.2 Specific Restrictions on Use of Funds. (a) ASSOCIATION agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE ~351.101(t) and 9351.108 (c) and (d). ASSOCIATION shall not utilize hotel tax funds for any expenditure, which has not been specifically documented to satisfy the purposes set forth in ml2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance of the person's job in an efficient and professional manner. ill. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) ASSOCIATION shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of ASSOCIATION in which the hotel tax funds shall be used by ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by ASSOCIATION. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to ASSOCIA nON any hotel tax revenues as set forth in Section I ofthis contract during any program year ofthis Agreement unless a budget North Texas State Fair PY2006 HOT Funds - Page 3 for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in ASSOCIATION with respect to the hotel tax funds paid by CITY to ASSOCIATION under this Agreement. ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX . TAX CODE 9351.101 ( a) and in the budget as approved by CITY. 3.2 Separate Accounts. ASSOCIATION shall maintain any hotel tax funds paid to ASSOCIATION by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonably advance written request of the Denton City Council, the City Manager or designate, or any other person, ASSOCIATION shall make such financial records available for inspection and review by the party making the request. ASSOCIATION understands and accepts. that all such financial records, and any other records relating to this Agreement shall be subject to the Texas Public Information Act, TEX. GOY'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax fund, and within thirty days after the end of every contract quarter, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE ~351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). ASSOCIATION shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. ASSOCIATION shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. ASSOCIATION shall give the City Manager of CITY, or his designate, reasonable advance written no~ice of the time and place of all meetings of ASSOCIA TION's Board of Directors, as well as any other meeting of any constituency of ASSOCIA TION, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006, and terminate at midnight on January 31, 2007. However, the program period shall commence on January I, 2006 and terminate at midnight on December 31, 2006. Only those North Texas State Fair PY2006 HOT Funds - Page 4 expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse ASSOCIATION for any contractual obligations of ASSOCIATION undertaken by ASSOCIATION in satisfactory performance of those activities specified in ~~2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ~3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~'12.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse ASSOCIATION or to assume the performance of any contractual obligations of ASSOCIATION, for or under any contract entered into by ASSOCIATION as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), ASSOCIATION will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. ASSOCIATION will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: North Texas State Fair PY2006 HOT Funds - Page 5 (a) The termination of the legal existence of ASSOCIATION; (b) The insolvency of ASSOCIATION, the filing ofa petition in bankruptcy, either voluntarily or involuntarily, or an assignment by ASSOCIATION for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of ASSOCIA nON to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~'4.3 or 4.4, ASSOCIA TION agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. v. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by ASSOCIATION with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, ASSOCIATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and ASSOCIA nON shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. ASSOCIA nON shall not be considered a partner or joint venturer with CITY, nor shall ASSOCIATION be considered, nor in any manner hold itself out as, an agent or official representative of CITY. North Texas State Fair PY2006 HOT Funds - Page 6 5.3 Indemnification. ASSOCIATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY ASSOCIATION OF THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. ASSOCIATION shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIA nON City of Denton 215 E. McKinney Denton, TX 76201 North Texas State Fair Association Glenn Carlton Executive Director P.O. Box 1695 Denton, Texas 76202 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and ASSOCIATION and their respective successors and assigns. I 5.7 Application of Laws. All tenus, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial detenninations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. North Texas State Fair PY2006 HOT Funds - Page 7 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. ASSOCIATION shall, at a nllnimum, provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$ 500,000/$1 00,000) 3. $250,000 LiquorlDram Shop Liability for any event occurring on City- owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation), and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this _ day of ,2005. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: By: JENNIFER WALTERS, CITY SECRETARY North Texas State Fair PY2006 HOT Funds ~ Page 8 NORTH TEXAS STATE FAIR ASSOCIA T By: ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary By: North Texas State Fair PY2006 HOT Funds - Page 9 North Texas State Fair & Rodeo Association North Texas State Fair & Rodeo Exhibit A ADVERTISING Internet Radio Newspaper/magazine $ 7,200 30,000 22,800 $ 60,000 TOTAL REQUEST $ 60,000 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Tax ACM: Kathy DuBose .. SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Tejas Storytelling Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a one-year term beginning January 1, 2006, through midnight December 31, 2006. Allocations are dependent upon requests for funding, as well as availability of revenues. PRIOR ACTIONIREVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to Council during the Council Work Session on August 8, 2005. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $44,000 for FY 2005-06 and has been included in the Annual Program of Services. Diana G. Ortiz Director of Fiscal Operations S:\Our Documents\Ordinances\05\HOT\ TejasOrd.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEJAS STORYTELLING ASSOCIATION, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Tejas Storytelling Association, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWlN M. SNYD ..----- /"...',#'....... ~'// -----. "",.",,,"'-- . '-. ..-".~ AGREEMENT BETWEEN THE CITY OF DENTON AND TEJAS STORYTELLING ASSOCIATION, INC. (pY2006), PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Tejas Storytelling Association, Inc., a legal entity incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, TEX. TAX CODE 9351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE 9351.101(a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, ASSOCIATION is well equipped to perform those activities; and WHEREAS, TEX. TAX CODe 9351.101(c) authorizes CITY to delegate by contract with ASSOCIATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by ASSOCIATION under this Agreement, CITY agrees to pay to ASSOCIATION a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to ASSOCIATION sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meamngs: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Tejas HOT Funding PY2006 - Page 1 Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day ofthe month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection ofthe hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31st, June 30th, September 30th, and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of: Four and Eight One Hundredths percent (4.08%) of the annual base payment amount, or the fixed contract amount of Forty Four Thousand Dollars ($44,000). This amount will be divided into quarterly payments equal to 25% ofthe annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 4.08% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments to ASSOCIATION. (a) The term "quarterly payments" shall mean payments by CITY to ASSOCIATION of those amounts specified in '1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be pai,d upon receipt ofthe required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. Tejas HOT Funding PY2006 - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of ASSOCIATION. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to ASSOCIATION of the agreed payments of hotel tax funds specified above, ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinitys; as well as the encouragement, promotion, improvement, and application of the arts including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these maj or art forms as authorized by TEX . TAX CODE 9 3 51.1 01 (a). Funds for any calendar year which are unused by midnight December 31 st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by ASSOCIATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), only if each such expenditure is directly attributable to work on programs, which promote tourism and the hotel and convention industry, and promotes at least one ofthe six statutory purposes enumerated within TEX. TAX CODE g351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of ASSOCIATION for which hotel tax funds may be used shall not exceed that portion of ASSOCIATION's administrative costs actually incurred in conducting the activities specified in ';2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry and the performance ofthe person's job in an efficient and professional manner. Tejas HOT Funding PY2006 - Page 3 III. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) ASSOCIATION shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of ASSOCIATION in which the hotel tax funds shall be used by ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by ASSOCIATION. In other words, CITY should be able to audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to ASSOCIATION any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in ASSOCIATION with respect to the hotel tax funds paid by CITY to ASSOCIATION under this Agreement. ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE ~351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. ASSOCIATION shall maintain any hotel tax funds paid to ASSOCIATION by CITY in a separate account or with segregated fund accounting, such that any reasonable person can ascertain the revenue source of any given expenditure. 3.3 Financial Records. ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees or attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, ASSOCIATION shall make such financial records available for inspection and review by the party making the request. ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOV'T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of the hotel tax funds, and within thirty days after the end of every contract quarter, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE ~351.1bl(c), and (3) a copy of all financial records (e.g., copies of front and back of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate .ASSOCIA TION shall respond promptly to any request from the City Manager of CITY, or designate, for additional information relating to the activities performed under this Agreement. Tejas HOT Funding PY2006 - Page 4 3.5 Notice of Meetings. ASSOCIATION shall give the City Manager of CITY, or his designate, reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of ASSOCIATION, at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2006 and terminate at midnight on January 31, 2007. However, the program period shall commence on January 1, 2006 and terminate at midnight on December 31, 2006. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. I (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse ASSOCIATION for any contractual obligations of ASSOCIATION undertaken by ASSOCIATION in satisfactory performance of those activities specified in ,-r,-r2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ,-r3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ,-r,-r2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse ASSOCIATION, or to assume the performance of any contractual obligations of ASSOCIATION, for or under any contract entered into by ASSOCIATION as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ,-r4.2(a), ASSOCIATION will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days, the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget, the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. ASSOCIATION will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered Tejas HOT Funding PY2006 - Page 5 into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of ASSOCIATION; (b) The insolvency of ASSOCIATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by ASSOCIATION for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~~4.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit. nor be construed to prohibit, the agreement by ASSOCIATION with another private entity, person, or organization for the performance of those services described in ~2.1 above. In the event that ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, ASSOCIATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreem4:?nt and not as an officer, agent, servant, or employee of CITY . ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entitjes, or organizations performing the same, and Tejas HOT Funding PY2006 - Page 6 ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. ASSOCIATION shall not be considered a partner or joint venturer with CITY, nor shall ASSOCIATION be considered, nor in any manner hold itself out as, an agent or official representative of CITY. 5.3 Indemnification. ASSOCIATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, :AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY ASSOCIATION OF THOSE SERVICES CONTEMPLATED BY TillS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. ASSOCIATION shall not assign this Agreement without fITst obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Tejas Storytelling Association, Inc. Cristin Thomas P.O. Box 2806 Denton, Texas 76202-2806 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and ASSOCIATION and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. Tejas HOT Funding PY2006 - Page 7 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms ofthe section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. ASSOCIATION shall provide insurance as follows: 1. $500,000 Commercial General Liability, or $1,000,000 Event fusurance, covering all events taking place on City-owned property 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) 3. $250,000 LiquorlDram Shop Liability for any event occumng on City-owned property where alcohol will be provided or served CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by CITY. EXECUTED this _ day of ,2005 THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: APPROVED AS TO LEgMJ~:)O!W. .: _.~-'--- c.--'-.- ~.~... .,.-".rr....~ /./' By: JENNIFER WALTERS, CITY SECRETARY ,;,r' Tejas HOT Funding PY2006 - Page 8 TEJAS STORYTELLING ASSOCIATION, INC. BY~~ rm rrector ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary By: Tejas HOT Funding PY2006 - Page 9 Tejas Storytelling Association Texas Storytelling Festival ADVERTISING Print Advertising Marketing & Promotions Direct Mail Video & Photography Website Radio $ 10,000 3,500 8,000 800 800 10,000 $ 33,100 ART Performers Site Operations $ 5,900 5,000 $ 10,900 TOTAL BUDGET $ 44,000 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Economic Development CM: Mike Conduff_ SUBJECT Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Opening Doors Immigration Services for provision of assistance to victims of domestic violence; providing for the expenditure of funds therefore; and providing for an effective date. BACKGROUND Council member Jack Thomson has requested provision of funding to Opening Doors Immigration Services to provide assistance to victims of domestic violence. ESTIMA TED PROJECT SCHEDULE The funding agreement specifies that the expenditure of all funds should take place before September 30,2005. PRIOR ACTIONIREVIEW(Councils. Boards. Commissions) There was no prior action regarding the allocation of funds to Opening Doors. FISCAL INFORMATION Funding of $500 to be expended under the agreement is from Council contingency funds. EXHIBITS 1. Ordinance 2. Service Agreement Linda Ratliff Director of Economic Development Prepared by: Barbara Ross Community Development Administrator S:\Our Documents\Ordinances\05\Opening Doors ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND OPENING DOORS IMMIGRATION SERVICES FOR PROVISION OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE; PROVIDING FOR THE EXPENDITURE OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Opening Doors Immigration Services, a Texas non-profit corporation, (the "Organization") provides assistance to immigrant households in the City of Denton where one or more residents have been the victim(s) of domestic violence (the "Program"); and WHEREAS, the Organization and the City of Denton desire to enter into an agreement to provide for the continuance of the Program which agreement is substantially in the same form as the agreement attached hereto and made a part hereof by reference (the "Agreement"); and WHEREAS, the City Council ofthe City of Denton hereby finds that the Agreement between the City and the Organization attached hereto and made a part hereofby reference serve a municipal and public purpose and the Agreement is in the public interest; NOW, THEREFORE, ~ THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body ofthis ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Public Service Agreement, including the expenditure of funds as provided in the Public Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR S:\Our Documents\Ordinances\05\Opening Doors ord.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 S:\OUf Documents\Contracts\05\Opening Doors.doc SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND OPENING DOORS IMMIGRATION SERVICES IMMIGRATION SERVICE This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and Opening Doors hnmigration Services, a Texas Non-Profit Corporation, hereinafter referred to as "Opening Doors Immigration Services"; WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided ftmds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest as it will promote tourism and economic development within the City, among other things; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES Opening Doors Immigration Services shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by Opening Doors Immigration Services to assist immigrant households where one or more of the household members have been the victim(s) of domestic violence. Use <?ffunds may include operating costs of the program and training. II. OBLIGATIONS OF OPENING DOORS IMMIGRATION SERVICES In. consideration ofthe receipt of funds from City, Opening Doors hnmigration Services agrees to the following terms and conditions: A. Five Hundred Dollars and no/l 00 ($500.00) shall be paid to Opening Doors Immigration Services by City to be utilized for the purposes set forth in Article I. B. Opening Doors Immigration Services will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement. C. Opening Doors Immigration Services will permit authorized officials of City to review its books at any time. D. Upon request, Opening Doors Immigration Services will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. Opening Doors hnmigration Services will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. Opening Doors hnmigration Services will appoint a representative who will be available to meet with City officials when requested. G. Opening Doors hnmigration Services will submit to City copies of year-end audited financial statements. m. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within the following time frame: August 1,2005 through September 30,2005, unless the contract is sooner terminated under Section VII 1tSuspension or Termination". IV. PAYMENTS A. PAYMENTS TO OPENING DOORS IMMIGRA nON SERVICES. City shall pay to Opening Doors Immigration Services the sum specified in Article IT after the effective date of this Agreement. B. EXCESS PAYMENT. Opening Doors hnmigration Services shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to Opening Doors Immigration Services; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. V. EVALUATION Opening Doors Immigration Services agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. Opening Doors hnmigration Services agrees to make available its financial records for review by City at City's discretion. In addition, Opening Doors hnmigration Services agrees to provide City the following data and reports, or copies thereof: A. All external or internal audits. Opening Doors hnmigration Services shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any major changes in program services. Page 2 of7 D. To comply with this section, Opening Doors Immigration Services agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and the services performed under this Agreement. The record system of Opening Doors Immigration Services shall contain sufficient documentation to provide in,detail full support and justification for each expenditure. Opening Doors Immigration Services agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. E. Nothing in the above subsections shall be construed to relieve Opening Doors Immigration Services of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term of this Agreement, Opening Doors Immigration Services shall deliver to City copies of all notices of meetings of its Board of Directors, setting forth the time and place thereof wherein this program is a part ofthe subject matter of the meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. Opening Doors Immigration Services understands and agrees that Citys representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of Opening Doors Immigration Services' governing body shall be available to City within ten (10) working days of approval. VIT. TERMINATION The City may terminate this Agreement for cause if Opening Doors Immigration Services violates any covenants, agreements, or guarantees of this Agreement, the Opening Doors Immigration Services's insolvency or filing of ban1cruptcy, dissolution, or receivership, or the Opening Doors Immigration Services' violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. vm. EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. Opening Doors Immigration Services shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Opening Doors Immigration Services will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. ill the event of non-compliance by Opening Doors Immigration Services with the non-discrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and Opening Doors Immigration Services may be barred from further contracts with City. Page 3 of7 IX. WARRANTIES Opening Doors Immigration Services represents and warrants that: A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as of the date shown on the information, data, orreport, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of Opening Doors Immigration Services on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of Opening Doors Immigration Services. C. No litigation or legal proceedings are presently pending or threatened against Opening Doors Immigration Services. D. None of the provisions herein contravenes or is in conflict with the authority under which Opening Doors Immigration Services is doing business or with the provisions of any existing indenture or agreement of Opening Doors Immigration Services. E. Opening Doors Immigration Services has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions ofthis Agreement. F. None of the assets of Opening Doors Immigration Services are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by Opening Doors Immigration Services to City. Each ofthese representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. B. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. Page 4 of7 C. Opening Doors Immigration Services shall notifY City of any changes in personnel or governing board composition. XI. INDEMNlFICATION To the extent authorized by law, the Opening Doors Immigration Services agrees to indemnify, hold hannless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Opening Doors Immigration Services or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of Opening Doors Immigration Services, its officers, employees, agents, subcontractors, licensees and invitees. XII. CONFLICT OF INTEREST A. Opening Doors Immigration Services covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Opening Doors Immigration Services further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. Opening Doors Immigration Services further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himselflherself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. XIII. NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand-delivery or facsimile, addressed to Opening Doors Immigration Services or City, as the case may be, at the following addresses: Page 5 of7 CITY SERVICES OPENING DOORS IM:MIGRATION City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8591 Ann Starnes, Executive Director Opening Doors hnmigration Services 2200 N. Bell Avenue Denton, TX 76209 Fax No. 940.891.0466 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XN. MISCELLANEOUS A. Opening Doors hnmigration Services shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. rf any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to Opening Doors Immigration Services hereunder, or any other act or failure of City to insist in anyone or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Opening Doors hnmigration Services. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occuning during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment ofthis Agreement. E. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. Page 6 of7 IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as oithe day of ,2005. 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: OPENING DOORS IMMIGRATION SERVICES By:a~ JIt- r- ANN STARNES -"""'-- EXECUTIVE DIRECTOR ATTEST: BY: BOARD SECRETARY Page 7 of7 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: City Manager's Office CM/DCM/ACM: Michael A. Conduff, City Manager SUBJECT: Consider adoption of an ordinance authorizing the City Manager to execute a personal services agreement with Barbara T. McCall Associates, Inc. to provide certain information and services with regard to legislation of interest to the city. BACKGROUND: Since 1997, Denton has joined the cItIes of Austin and Dallas as part of the Texas Cities Legislative Coalition that contracts for Washington representation by Barbara T. McCall Associates, Inc. Ms. McCall provides representation assistance to local governments and their agencies. As our Washington representative, Ms. McCall provides information about legislative and executive action on issues of common interest, transmits the city's position on issues to the Congressional delegation and to the Administration, and pursues defined projects or individual legislative priorities for each city. This includes establishing and maintaining contact with the Texas Senators and the city's Representatives. As our Washington representative, she maintains communications with the White House and many federal agencies and departments. The services of Barbara T. McCall Associates, Inc. have been beneficial to the City of Denton in keeping elected officials and staff aware of federal grant deadlines and pending legislation that could impact the city. During this last fiscal year, Ms. McCall's services have assisted with HUD funding, airport improvements, homeland security and transportation issues. The 2005-2006 contract provides thirty-six (36) hours of assured-usage hours, optional hours not to exceed one hundred fifty (150), and expenses not to exceed $5,000. As funding for local government initiatives has become more competitive, Ms. McCall's assistance in keeping Denton's priorities before our Congressional delegation has become increasingly important. RECOMMENDA TIONS: Approve the ordinance allowing the City Manager to execute the contract. PRIOR ACTIONIREVIEW (Council, Boards, Commission): Previous contracts have been approved in 1998-2003 with the adoption of Ordinance No. 98- 348, Ordinance No. 99-380, Ordinance No. 2000-356, Ordinance No. 2001-321, Ordinance No. 2002- 290, Ordinance No. 2003-293 and Ordinance No. 2004-294. FISCAL INFORMATION: The contract for fiscal year 2006 is not to exceed $42,750 and reflects no increase in cost. The funding for the contract has been included in the 2005-2006 fiscal year budget scheduled for approval on September 20,2005. Respectfully submitted: Betty Williams Director of Management & Public Information Attachments: Ordinance Contract s:\Our Documents\Ordinances\05\McCall Contract Ordinance 2005.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PERSONAL SERVICES AGREEMENT WITH BARBARA T. MCCALL ASSOCIATES, INC. TO PROVIDE CERTAIN INFORMATION AND SERVICES WITH REGARD TO LEGISLATION OF INTEREST TO THE CITY; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTNE DATE. WHEREAS, the City of Denton wishes to employ Barbara T. McCall Associates, Inc. to prov'ide personal services with regard to legislation which is of interest to the City; and WHEREAS, the City of Denton will be participating with a number of other cities that have entered into similar Personal Services Agreements with Barbara T. McCall Associates, Inc.; and WHEREAS, due to the concurrent participation of other Texas cities and that Barbara T. McCall has unique qualifications and experience that no other person can offer the City during this period of time as a Personal Services Contract, this Contract is exempt from competitive bidding in accordance with Tex. Loc. Gov't Code 9252.002(a)(4); and WHEREAS, the City Council deems it in the public interest to authorize the City Manager to enter into a Personal Services Contract with Barbara T. McCall Associates, Inc. for the above-mentioned legislative services; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to enter into a Personal Services Agreement with Barbara T. McCall Associates, Inc., substantially in the form of the attached Agreement, which is made a part of this ordinance for all purposes, to provide information about legislation and other related personal services to the City. SECTION 2. The City Manager is hereby authorized to make the expenditures as outlined in the attached Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ::wm~ORNEY Page 2 PERSONAL SERVICES AGREEMENT Between the City of Denton, Texas State of Texas, County of Denton and BARBARA T. McCALL ASSOCIATES, INC. Washington, D.C. VYHEREAS, the City of Denton, ("City"), in consultation with other major cities in Texas, has determined that there is a need for jointly sponsored Washington representation; and WHEREAS, this need is particularly pressing in relation to: 1. information about legislative and executive action on issues of common interest, 2. transmitting City positions on these issues to the Congressional delegation and to the Administration, and 3. obtaining individual City servIce to pursue defined projects or individual legislative priorities; and VYHEREAS, Barbara McCall, due to the concurrent participation of other Texas cities has unique qualifications and experience that no other person can offer the city during this period of time; and WHEREAS, Barbara T. McCall is known to the Cities and is capable of and willing to undertake such representation in Washington as a personal services contract exempt from competitive bidding in accordance with Section 252.022 (a) of the Texas Local Government Code; NOW, THEREFORE, the City of Denton, in association with and recognizing the concurrent participation of the Cities of Austin and of Dallas (collectively, the "Cities"), enters into this personal services agreement with Barbara T. McCall Associates, Inc. ("Consultanet). 1 1. OBLIGATIONS OF THE CONSULTANT A. The Consultant will operate a unit to act as a Washington office for the Cities and head this unit and as Washington Assistant to the Cities. The Consultant will furnish requisite staff, office space, utilities, furnishings, and equipment, secretarial services, common-use office supplies and services, and general administrative support. B. The Consultant will consult with the "Committeett (see Section lIE) to determine issues of specific interest to the Cities and to determine policies and positions which the Cities as a group hold and wish to be pursued. In cases in which the City positions differ from or conflict with the Citiest group position, the Consultant will consult with the City and the Committee to determine the proper course of action. C. Information. 1. The Consultant will provide regular information on Washington issues and events of interest to the Cities. This will be done by: a) a regular "Washington Report," b) written reports, bulletins, and memoranda on developments regarding Texas-specific issues, and c) direct phone contact. 2. The Consultant wil1present federal affairs briefmgs for the Cities at times and places specified by the Committee. D. Congressional Relations. The Consultant will establish and maintain on a regular basis contact with the Texas Senators and the Cities' delegation in the House of Representatives. E. Administrative Relations. The Consultant will advise and consult on behalf of the City with the White House and the following federal agencies or departments: Commerce, SBA, Treasury, HUD, Labor, HHS, DOT, EPA, Interior, Justice, DOE, and such other agencies, departments and commissions as may be necessary to the performance of Washington service to the City. 2 F. illdividual City Services. 1. The Consultant will initiate and pursue research, reports, meetings~ consultation and other activities on matters of interest to the City and will respond to requests for similar actions from the City. She will inform the Administration and Congress of the needs of the City. Such services and activities will be provided at a cost of$105.00 per hour. 2. Should billable costs for the contract period appear to exceed the costs specified in Sections n~ B or C. The consultant will notify the City, together with her estimates of the extra amounts expected to be required, the reasons therefore, and her recommendation to the City. II. OBLIGATIONS OF THE CITY A. The City will contract with the Consultant for specified services for a period of one year, commencing October 1, 2005 and ending September 30,2006. B. Service Costs 1. The service cost of this Contract is composed of three elements: a) A retainer of eighteen thousand two hundred and twenty dollars ($18,220.00) per the one year period. b) Thirty-six assured-usage hours of service at one hundred and five dollars ($105.00) per hour, totaling three thousand seven hundred eighty dollars ($3~780.00). c) Optional use hours of service at the rate of one hundred five dollars ($105.00) per hour~ not to exceed fifteen thousand seven hundred fifty dollars ($15,750.00). C. Reimbursable Costs--Not to Exceed five thousand dollars ($5,000.00). 1. Costs incident to travel outside Washington~ D.C. for long-distance telephone calls and for expedited communication services shall be reimbursed to the Consultant upon submission of its invoice to the City. It is understood that travel is to be pre-authorized by the City or the Committee. ill the case of travel authorized by the Committee, the City agrees to pay its pro-rata share of the costs. 2. Costs for the following items which exceed the allocation for such items in the basic contract cost shall~ when authorized by the City and the 3 Committee, be reimbursed to the Consultant upon presentation of an mVOlce: a) Subscription and dues. b) Printing and graphics. c) Supplies. d) Provision oflocal ground transportation in Washington. e) Rental of meeting facilities and other meeting expenses. 3. If an expenditure under this section is authorized by the Committee, the City agrees to pay its pro-rata share. D. Contract costs are payable as follows: 1. The retainer and assured hourly costs of twenty two thousand dollars ($22,000) are payable, quarterly, in advance in these amounts: October 1, 2005 $5,500.00 January 1, 2006 $5,500.00 April 1, 2006 $5,500.00 July 1, 2006 $5,500.00 2. The optional hourly costs above the first thirty-six hours of service are payable upon billing by the Consultant, after the assured hours of service have been exceeded. (Sec. II, B. 2) E. The Committee. 1. The City will appoint a member to a Committee of the Cities associated in this effort. The Committee will appoint its own chairperson and determine the times and places of its meetings. The functions of the Committee are: a) to determine common positions on federal issues which the Consultant is to pursue on behalf of the Cities. b) to discuss apparent conflicts or differences on issues or projects which may arise among the Cities and to resolve them in terms of a course of action for the Consultant. 4 c) to monitor the function and operation of the Washington office to determine ifit is fulfilling the goals and objectives for which it was designed. d) to authorize travel and other reimbursable expenses to be incurred for the common purposes ofthe Cities. F. General. 1. The City will inform the Consultant of the person(s) authorized to request services and to serve as the chief contact. 2. The City will supply the Consultant with a summary of the federal programs in which the City is participating and other information necessary to an understanding of the City's purposes in relation to the federal government. III. THE CITY AND THE CONSULTANT AGREE THAT CERTAIN EXCLUSIONS SHALL APPLY. The Consultant will not: A. Directly or indirectly participate in or intervene in any political campaign on behalf of or in opposition to any candidate for city office. B. Will not represent the interests of local constituents in pursuit of federal business. C. By virtue of this agreement, represent other local agencies in the City except those which are instrumentalities or agencies of the City. D. Perform any legal, engineering, accounting, or other similar professional services. E. Expend more than two thousand five hundred dollars ($2,500.00) provided by this contract in efforts to influence HUD directly, as specified in Sec 7 (d) and 13 (g) of the Department of Housing and Urban Development Act 42 USC 3535 (d) and 3537 beg) and 24 CFR Sec. 86.1. IV. THE CITY AND THE CONSULTANT AGREE A. Either party may terminate this agreement at any time by giving the other at least thirty days' written notice. 5 B. This agreement shall take effect on October 1, 2005. V. PROFESSIONAL COMPETENCY A. The Consultant agrees that in the performance of these personal services, Consultant shall be responsible to the level of competency and shall use the same degree of skill and care presently maintained by other practicing professionals performing the same or similar types of work. For the purpose of this Agreement, the key person who will be performing most of the work hereunder shall be Barbara T. McCalL However, nothing herein shall limit Consultant from using other qualified and competent members of her firm to perform the services required herein so long as they are working in a support role to Ms. McCall. B. The City shall be able to make copies of any reports and documents prepared or obtained under the terms of this Agreement. The City shall be able to use copies of these reports and documents without restriction on their use and without further compensation to Consultant. VI. ESTABLISHMENT AND MAINTENANCE OF RECORDS Full and accurate records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of at least three years after receipt of final payment under this Agreement. VII. AUDITS AND INSPECTION At any time during normal business hours and upon reasonable notice to the Consultant, there shall be made available to the City all of the Consultant's records with respect to all matters covered by this Agreement. The Consultant shall permit the City to audit, examine, and make excerpts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement. VIII. INDEMNITY AND INDEPENDENT CONTRACTOR RELATIONSHIP A. The Consultant shall perform all services as an independent contractor not under the direct supervision and control of the City. Nothing herein shall be construed as creating a relationship of employer and employee between the parties. The City and Consultant agree to cooperate in the defense of claims, actions, suits, or proceedings of any kind brought by a third party which may result from or directly or indirectly arise from any negligence and/or errors or omissions on the part of the Consultant or from any breach of the Consultant's obligations under this Agreement. In the event of any litigation or claim under this Agreement in which the City is joined as a party, Consultant shall provide suitable counsel to defend City and Consultant against such claim, provided the Consultant shall have 6 the right to proceed with the competent counsel of its own choosing. The Consultant agrees to defend, indemnify, and hold harmless the City and all of its officers, agents, servants, and employees against any all such claims to the extent of coverage by Consultant's commercial liability policy. The Consultant agrees to pay all expenses, including, but not limited to attorney's fees, and satisfY all judgments which may be incurred or rendered against the Consultant's commercial liability insurance policy. Nothing herein constitutes a waiver of any rights or remedies the City may have to pursue under either law or equity, including, without limitation, a cause of action for specific performance or for damages, a loss to the City resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. B. Consultant shall maintain and shall be caused to be in force at all times during the term of this Agreement, a legally binding policy of commercial liability insurance, with a rating of at least A- with Best Rated Carriers. Such coverage shall cover any claim hereunder occasioned by the Consultant's negligent professional act and/or error or omission, in an amount not less than $500,000 combined single limit coverage occurrence. ill the event of change or cancellation of the policy by the insurer, the Consultant hereby covenants to forthwith advise the City thereof; and in such event, the consultant shall, prior to the effective date of change or cancellation, serve substitute policies furnishing the same coverage. The Consultant shall provide a copy of such policy or the declarations page of the policy or a certificate of insurance, whichever is reasonably satisfactory, to the City through its City Manager simultaneously with the execution of this Agreement. IX. COMPLIANCE WITH LAWS The consultant shall comply with all applicable laws. x. GOVERNING LAW This agreement shall be governed by the laws of the State of Texas, venue and jurisdiction of any suit or cause of action arising under this agreement shall lie exclusively in a court of competent jurisdiction sitting in Denton County, Texas. 7 In witness hereof~ the City of Denton, Texas, has caused this agreement to be executed by its duly authorized City Manager and Consultant has executed this agreement through its duly authorized President, dated this _ day of2005. FOR THE CITY OF DENTON, TEXAS Michael A. Conduff City Manager Attest: Jennifer Walters City Secretary ~b~",j iJl/c(A Barbara T. McCall, President Barbara T. McCall Associates, Inc. 1212 New York Ave, NW Washington, DC 20005 202-842-5430 Federal Employer ill #: 52-1906049 By: Ed Snyder, City Attorney 8 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Sharon Mays 349-8487 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 3396-Electrical Energy Transmission Fees in the total amount of $134,421). (The Public Utility Board approved this item by a vote of 4-0). BID INFORMATION This item is for an additional "true up" amount to be paid for transmission fees exceeding $25,000 for the time period ending September 30, 2005. Council approved an estimated amount of $268,836 on May 5, 2005. The purchase order is for payment of a fee imposed by the Public Utility Commission of Texas (PUCT) for planned transmission services of energy delivered to the City of Denton. The Public Utility Regulatory Act of 1995 (PURA 95) required the development of a new, statewide mechanism for electric transmission service in Texas. PURA 95 also placed municipal utilities under the jurisdiction of PUCT for matters related to transmission. As a result, the Denton Municipal Electric Utility has been ordered by the PUCT to pay specific amounts to various other electric utilities in the State. Purchase orders provide the City of Denton the authority required by the City Charter to make those payments and encumber funds estimated as costs for services. No funds are actually spent until invoices are received, reviewed, and approved. RECOMMENDA TION Approve payment of electrical transmission fee to Lower Colorado River Authority in the amount of $134,421. PRIOR ACTIONNIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its September 12, 2005 meeting. PRINCIPAL PLACE OF BUSINESS Lower Colorado River Authority Austin, TX FISCAL INFORMATION Funds to meet these regulatory fee obligations were budgeted in 2004-2005 budget account 600400.6072. Agenda Information Sheet September 20, 2005 Page 2 Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent I-AIS-File 3396 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE OF FUNDS FOR PAYMENTS BY THE CITY OF DENTON FOR ELECTRICAL ENERGY TRANSMISSION FEES TO THOSE CITIES AND UTILITIES PROVIDING ENERGY TRANSMISSION SERVICES TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE (FILE 3396-ELECTRICAL ENERGY TRANSMISSION FEES IN THE TOTAL AMOUNT OF $134,421). WHEREAS, in order to comply with the legislative requirements contained in the Utility Regulatory Act of 1995, for the payment for energy transmission services fees, the City of Denton is required to pay such fees imposed by the Public Utilities Commission of Texas to one listed utility set forth in Exhibit "A": and WHEREAS, the City Manager has reviewed and recommended that the City Council approve and authorize the payment of such; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The expenditure offunds in the amount of$134,421 to be paid to the listed utility in the specified amount shown on Exhibit "A", which is attached to and made a part of this ordinance for all purposes is hereby authorized. 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: EDWIN M. SNYDER, CITY ATTORNEY BY. ~ 3-0RD-FILE 3396 Lower Colorado River Authority EXHIBIT A $134,421 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR SEPTEMBER 12, 2005 9:00 A. M. DRAFT 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 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, Sept 12, 2005 at 9:12 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Charldean Newell, Dick Smith John Baines arrived at approximately 11 :06 a.m. EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Phil Gallivan 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 4. 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. Page 1 of 2 1 2 1) Consider recommending approval authorizing the expenditure of funds for payments by the 3 City of Denton for electrical energy transmission fees to those cities and utilities providing 4 energy transmission services to the City of Denton; and providing an effective date (File 5 3396-Electrical Energy Transmission Fees in the total amount of $134,421). 6 7 2) Consider recommending approval for the purchase and installation of replacement Caron 8 landfill compactor wheel tips for use on the Caterpillar Model 826 compactor at the City's 9 landfill from Caron Compactor Company, Escalon, CA., in the amount of $34,397.84. 10 11 3) Consider recommending approval of an ordinance authorizing the abandonment and release 12 of certain blanket electric utility easements owned by the City, to the extent that they 13 encumber certain real property owned by Holigan Land Development, Ltd. containing 14 approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 15 1330, Denton, Denton County, Texas. 16 17 4) Consider recommending approval of a Professional Services Agreement between the City of 18 Denton and Arthur Surveying Co., Inc for the delivery of routine surveying services on a 19 work order basis for fiscal year 2005-2006, in an amount not to exceed $200,000.00. 20 21 Board Member Dick Smith moved to approve Consent Agenda Items 1-4 with a second 22 from Board Member Bob Bland. The motion was approved by a vote of 4 to O. 23 Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 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 authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the Dallas Independent School District, Texas under Section 271.102 of the Local Government Code, to authorize participation in various Dallas Independent School District contracts for the purchase of various goods and services; authorizing the expenditure of funds therefore; and declaring an effective date (File 3404- Interlocal Agreement with the Dallas Independent School District). INTERLOCALAGREEMENT INFORMATION Chapter 271.102 of the Local Government Code, authorizes respective participating governments to enter into j oint contracts and agreements for the purchase of necessary materials, supplies, and services. Over the past several years, the City of Denton and other entities have entered into cooperative purchasing agreements that have been highly beneficial to the taxpayers through anticipated savings. The attached agreement is an authorization to participate in contracts awarded by the Dallas Independent School District and will remain in effect until terminated by either party. Any acquisition exceeding $25,000 will be presented to Council for approval, prior to issuing a purchase order. This Interlocal Agreement will allow the City of Denton to utilize contracts for supplies and services competitively bid by the Dallas Independent School District. In the past, we have purchased such items as police sedans, tires, corrugated metal pipe, lubricants, oils, road materials, and other supplies from similar agreements. The bid process followed by the Dallas Independent School District meets all State bidding requirements and bid opportunities are extended to all local suppliers. ESTIMA TED SCHEDULE OF PROJECT This agreement is effective upon approval by the Dallas Independent School District and will remain in effect until terminated by either party. RECOMMENDA TION Approve this Interlocal Agreement between the City of Denton and Dallas Independent School District. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Each acquisition, based on this agreement, will follow the City of Denton fiscal verification policy and be charged to the appropriate budget account. Respectfully submitted: ~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent l-AIS-File 3404 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE DALLAS INDEPENDENT SCHOOL DISTRICT, TEXAS UNDER SECTION 271.102 OF THE LOCAL GOVERNMENT CODE, TO AUTHORIZE PARTICIPATION IN VARIOUS DALLAS INDEPENDENT SCHOOL DISTRICT CONTRACTS FOR THE PURCHASE OF VARIOUS GOODS AND SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND DECLARING AN EFFECTIVE DATE (FILE 3404-INTERLOCAL AGREEMENT WITH THE DALLAS INDEPENDENT SCHOOL DISTRICT). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee is hereby authorized to execute the Interlocal Cooperative Purchasing Program Agreement with the Dallas Independent School District under Section 271.102 of the Local Government Code, substantially the same as the copy of which is attached hereto and incorporated by reference herein (the "Agreement"). SECTION 2. The City Manager, or his designee is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 2-0RD-Interlocal Agreement With all INTERLOCAL COOPERATIVE PURCHASING AGREEMENT BETWEEN DALLAS INDEPENDENT SCHOOL DISTRICT AND CITY OF DENTON, TEXAS STATE OF TEXAS COUNTY OF DENTON THIS AGREEMENT is made on the day of ,2005, between the City of Denton, and Dallas Independent School District; each referred to herein as participating governments. WHEREAS, the respective partIcIpating governments are authorized by the Interlocal Cooperation Act, v.T.C.A. Government Code, Chapter 791, to enter into joint contracts and agreements for the performance of governmental functions and services including administrative functions normally associated with the operation of government such as purchasing of necessary materials and supplies; WHEREAS, it is the desire of the aforesaid participating governments to comply with and further the policies and purpose of the Interlocal Cooperation Act; WHEREAS, the participating governments cannot normally obtain the best possible purchase price for materials and supplies acting individually and without cooperation; and WHEREAS, it is deemed in the best interest of all participating governments that said governments do enter into a mutually satisfactory agreement for the purchase of certain materials and supplies; WHEREAS, the parties, in performing governmental functions or in paying for the performance of governmental functions hereunder shall make that performance or those payments from current revenues legally available to that party; NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants and conditions contained herein and pursuant to the authority permitted under the Interlocal Cooperation Act, promise and agree as follows: I. Purpose The purpose of this Agreement is to authorize participation of the City of Denton in various contracts for the purchase of various goods and services. Participation in this cooperative program will be highly beneficial to the taxpayers of the City of Denton through anticipated savings to be realized. II. Duration of Agreement This Agreement shall be in effect from the date of execution until terminated by either party to the agreement. III. Relationship of Parties It is agreed that the City of Denton, in receiving products and/or services specified in this agreement, shall act as an independent purchaser and shall have control of its needs and the manner in which they are acquired. Neither the City of Denton, its agents, employees, volunteer help or any other person operating under this contract shall be considered an agent or employee of Dallas Independent School District and shall not be entitled to participate in any pension plans or other benefits that Dallas Independent School District provides its employees. Dallas Independent School District shall notify all participating entities of available contracts to include terms of contract, commodity cost, contact names and addresses. Dallas Independent School District shall keep participating governments informed of all changes to the Cooperative Purchasing list of contracts. Nothing in this agreement shall prevent any participating government from accepting and awarding bids for commodities subject to this agreement individually and in its own behalf. Tom D. Shaw, C.P.M., Purchasing Agent is hereby designated as the official representative to act for the City of Denton in all matters relating to this agreement. IV. Purchase of Goods and Services All products and services shall be procured by Dallas Independent School District in accordance with procedures governing competitive bids and competitive proposals. The participating government will be able to purchase from those contracts established by Dallas Independent School District where notice has been given in the specifications and successful bidder has accepted terms for Cooperative Purchasing Agreements for local governments. The participating governments hereto agree that the ordering of products and services through this agreement shall be their individual responsibility and that the successful bidder or bidders shall bill each participating government directly, or as deemed advantageous to both participating governments. The participating governments agree to pay successful bidders or antIcIpating governments directly for all products or services received from current revenues available for such purchase. Each participating government shall be liable to the successful bidder only for products and services ordered by and received by it, and shall not by the execution of this agreement assume any additional liability. Dallas Independent School District does not warrant and is not responsible for the quality or delivery of products or services from successful bidder. The participating government shall receive all warranties provided by successful bidder for the products or services purchased. In the event that any dispute arises between individual participating government and a successful bidder, the same shall be handled by and between the participating government body and the bidder. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their authorized officers thereon the day and the year first above written. (CONTRACTING ENTITY) CITY OF DENTON By: By: Michael A. Conduff City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Mike Ellis 349-8424 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance accepting competItIve bids by way of an Interlocal Cooperative Purchasing Program Participation Agreement with the Dallas Independent School District under Section 271.102 of the Local Government Code, for the purchase of products and services for an onsite vehicle parts facility; providing for the expenditure of funds therefore; and providing an effective date (File 3405-Interlocal Agreement for the Purchase of Products and Services for an Onsite Vehicle Parts Facility with the Dallas Independent School District, contract awarded to Genuine Parts Company in the estimated amount of $839,946). INTERLOCAL AGREEMENT INFORMATION On March 28, 2005, the Dallas Independent School District opened competitive bids for the purchase of products and services for an onsite vehicle parts facility. Dallas Independent School District's Board awarded the contract on August 25, 2005. The prices received are very competitive and the products and services bid match our existing needs. Section 271.102 of the Local Government Code of the Texas General Code provides that Local Governments may agree to purchase goods and services through Interlocal Agreements. This contract for automotive/vehicle parts facility operation is included in the budget process. Justification for this onsite operation or outsourcing of the vehicle maintenance parts and service is based upon the information shown on Attachment 1, which was submitted by Mike Ellis, Superintendent of Fleet Services. RECOMMENDA TION Award this contract for products and services for an onsite vehicle parts facility based upon the Interlocal Agreement with the Dallas Independent School District. PRINCIPAL PLACE OF BUSINESS Genuine Parts Company dba "NAP A" Mesquite, TX Agenda Information Sheet September 20, 2005 Page 2 ESTIMA TED SCHEDULE OF PROJECT Contract start up is estimated to be October 1, 2005 and run through September 30, 2008 for a three-year term. FISCAL INFORMATION Funding for this item will be provided from Parts Inventory account 820100.7899. Respectfully submitted: ~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Fleet Services Budget Proposal Attachment 2: Contract for Services from Dallas Independent School District l-AIS-File 3405 - C 0) E ..e t) ell :I:: <:( VI 0 1.0 0 I ..... 0) 0 ::: :::l 0 0 1.0 .... 1.0 0 co_ .... 00 'Ot 00 0 VI ..;- Qj I'- '<t .... .... 0 e:::: CO N (") N 0 1.0 tF7 tF7 tF7 N .... 1.0 tF7 tF7 tF7 Ol C '(3 ..... :::l o CI) - :::l o 0) CI) :::l o ..e 0) ..... ell $ ..e Ol :::l o ..... ..e - CI) t: ell a... 0) CI) :::l o ..e 0) ..... ell $ >- ~ :c ..S!l '(ii VI > Qj ell C)CI) Ct: Cll ell ..eo. U -0 CI) "C 0) ..... ... CI) :::l U; ell 0 O~..e c..t)~ o .!: 0 C:.8.... 0)..... :::l 0 -0 0) ~~ .:;: ~ :.+::i c..> ~ C -0 ell e :::l o.c t) C C ell ell 0) -5ro 0) E E ~ C C. 0. ell C ell C ..... o Ol C '(3 ..... :::l o CI) - :::l o -0 0) CI) o 0. o ..... a... CI) 0) t) .~ 0) C/) - C 0) E 0) > o c.~ EE :::l 'eft. ~ 1.0 ..... - 0) ~ LL 0) CI) :::l o ..e 0) ..... ell $ 0) ..e - - CI) o t) 0) Ol ell ..... 0) > ell 0) ..e I- o II) CD ~ 0) - ell E X o ..... 0. 0. ell >- .0 -0 0) t) :::l -0 0) ..... Ol C '(3 ..... :::l o CI) - :::l o o - 0) :::l -0 -0 ell 0) ..e ..... 0) > o Ol C :;::; ell ..... 0) 0. o C Ol C .:;: ell CI) ell :::l C C ell -0 0) 1:5 0) B ..... a... 0) .0 = .~ .;....: -0 0 0) CI) ro Ol ..... C 0) > C ell 0) CI) Ol_ CI) ell ..... :::l 0) C -0 C o ell 0) C CI) ell ell C ..e t) CI) ..... :!::: :::l :::l a... CI) CI) ~ ~O a... a... ell ell :::l CI) C CI) C 0) ell t) ..... e o 0. ..... 0 0) _ .00 Eo :::l0) C'Ot 0)tF7 ..e..... I- 0 CI) Ol C .:;: ell CI) ell :::l C C ell -0 0) 1:5 0) B ..... a... 0) ..... ell CI) 0) ..... :::l CI) ell 0) E 0) t) C ell E ..... .E ..... 0) 0. - C 0) ..... ..... :::l t) C o - C 0) o ~ o o 0) ..... .... ..... o 0) Ol ell ..... 0) > ell C ell >- .0 -0 0) CI) ell 0) ..... t) 0) -0 - CI) o t) C o :;::; :!11 :::l 0- t) ell CI) t: ell 0. - 0) ~ ..... ell E ..... 0) (j:: <:( ..... o 'E~ Qj .- EO - .. 'E .g E C o 0) U > >- VI.o ... 0-0 "C 0) C CI) Qj ell >-5 ..... :::l 0. 0) ~ .0 :::l o 0 _ ..e -'<t ~N E C -..e CI)_ ~ .~ C ~ ~M OClO c-g ~ ell C-o C C ell .8 E C 0) 0)-0 o C '0 0 ~~ O~ '-.: o -0 C 0) > 0) ..e - >- .0 -0 0) c.. 0. :::l CI) CI) ..... 0) :::l CI) 0 :::l..e O'<t ..eN ~ C eIl..e $- - .~ ~~ LL~ C-o .8 C C ell 0)-0 o C ..... ell o E ~O) 0-0 C 0) 0 ~~ _ 0 eIl~ -0 0) ~.o :::l = ~ .~ 0)- ..... t) ell ell $;:' 0) C .0 8 o 0) -..e c- O) C E~ 1il .~ 0) > CI) C 0) ..... ~5l o ell - 0) ~ E > 0) C t) -0 C 0) ell - E ell ..... ~.g CI) 0) UJa... Qj c.. >- - "C C :::l ..... o - ~ >- .c~ C 0 O~ E ,!!! -g :::l :::l C"LL (.)- Cll ell ..... VI 0) t:: C Cll 0) c..C> -0 C 'eft.~ 1.0 0) ~ 1.0 .~ -0 0) 3C/) LL ell ~E - 0) - - :JE ~ o 1.0 ..e t) C ell ..... :E C a:l OO-o,g~ -g - .~ ~ ~ ~ ~ ~ ~ VI..eO ell ell eIl:::l-o ::iOLLC>OLLI-UJ t:OOOOOOO ,~ ~~~~~~~ 00000000 Attachment 2 MASTER AGREEMENT FOR PRODUCTS AND SERVICES BETWEEN DALLAS INDEPENDENT SCHOOL DISTRICT J>.ND GENUINE PARTS COMPANY This Ma~ter Agreement for Products and Services ("Agreement") is between Genuine Parts Company ("Contractor" or "NAPA") and the Dallas Independent School District (hereinafter "DISD" or "District") and shall be effective beg~g S~tember L 2005. This Agreement consists of the terms and conditions on pages I thr'lugh 33 and such Customized Supplemental Services Agreements as may hereinafter be agreed between the parties. The parties agree that the terms and conditions of this Agreement shall govern any Customized Supplemental Services Agreements, mrl~ss specifically modified as provided herein. The parties further agree that the District shall have no obligation to enter any CUstomized Supplemental Services Agreement nor to agree to any particular level of expenditure. RECITALS . WHEREAS, the Contractor has experience and expertise in providing products and services for an on-site parts facility; and. WHEREAS, DISD and the Contractor in response to DISD RFP RT202737 desire to enter into an arrangep:1ent for providing an on~site vehicle and equipment maintenance parts facility; and WHEREAS, Contractor represents itself able and, for consideration, willing to provide the services and products at the price and terms set forth in the Management Summary/Scope of Services and perform the services requireli by the DISD; NOW, THEREFORE, for and in consideration of the promises hereinafter contained, the parties agree as follows: 1. RELATIONSHIP AND AUTHORITY. a. Contractual Relationship. The Board of Till.stees ("Board"), as the governing body of DISD, and Contractor hereby agree that the Board is charged under state law with the duty to provide adequate public schools and the authority to supervise all matters pertaining to the public schools, and that the Board will retain all such authority under this Agreement. The Board, as IDe governing body of DISD, and Contractor further agree that Contractor shall be subject to all policies, rules and regulations of the Board, the Texas Education Agency, and the Texas State Board of Education to the extent as applicable to Contractor's performance under this Agreement or to like contractors generally. Contractor also agrees that Contractor in the provision of goods or the administration of services pursuant to any grant or contract awarded to toe DISD shall be considered a sub grantee or subcontractor of the DISD subject to the same conditions, assurances, and approvals as the DISD pursuant to the applicable grant or contract. b. Authority. The laws of the State of Texas and any federal laws applicable to DISD govern L':1is Agreement. Contractor specifically agrees to also be bJJnd by these laws and any court orders imposed upon DISD in like manner as DISD insofar as those court orders apply~,~ DISD students and services provided by Contractor pursuant to this Agreement. Contractor shall have the power and authority, consistent with the limitations herein, to PAGE 10f33 take suc~ actions as may be necessary or desirable to properly and efficiently provide the goods and services provided, for herem. 2. AVAILABILITY OF FUNDS AND BUDGET AND FISCAL PROVISION AND TERMINATION IN THE EVENT OF NON-APPROPRIATION. . . ia. ,This Agreement is subject to the budget and fiscal policies, regulations and practices of the DISD. Any fm~cial conmritment on the part ofDISD contained in this Agreement is subject to annual appropriation by the Board afdthe parties agree that DISD has no financial obligations under this Agreement other tb<m for the current fiscal year at anypbint during the Term and that the DISD has not irrevocably pledged and held for payment I sufficient cash re~erves for funding Contractor or for providing the services described herein for the entire Term of this Agteement; 'provided however, that nothing in this section shall excuse DISD from payment for products slllppedor services rendered prior to such termination for non-appropriation. b. The amoWlt of the DISD's obligation hereunder shall not at any time exceed the amount herein stated. r c. DISD has no obligation to renew this Agreement after expiration of its term. If ftmds are appropriated foca portion of a fiscal year, this Agreement will terminate, without penalty, at the end of the term for which ftmds are appropriated. d. This section controls against any and all other provisions of this Agreement. 3. TERMOFTHEAGREEMENT The Agreement shall become effective, September 1. 2005, and shall continue for a period of three (3) years; and, may be renewed at the option of the District with Contractor's mutual consent for two successive one- year terms, provided that the District shall give written notice of its intention to renew not later than sixty (60) days prior to the end of the then current contract year. 4, SCOPE OF SERVICES The Contractor shall deliver services as described in Exlubit A - Management Summary/Scope of Services. 5. SOFTWARE LICENSES Refer to Exhibit B. 6. CO:MPENSA TION The Contractor shall be paid in accordance wi.th Exhibit C attached hereto. Requests for compensation shall be invoiced, complete with a breakdown of charges and receipts as applicable. DISD shall make payments by check within 30 days of receipt of invoice. The total amount of money to be paid to the Contractor annually under this Agreement shall not exceed the total amount budgeted by DISD. DISD shall promptly notify Contractor when aggregate purchases by DISD are approaching the total budgeted amount, and shall not place orders for goods after that amount has been reached. Any goods delivered or work performed in excess of said amount sball not be compensated unless authorized by the General Superintendent of DISD in writing. Interest, if any, to be paid on past due sums shall be governed by and paid in accordance v..ith the Texas Education Code. DISD's tax exemption certificate, attached as Exhibit D, shall apply to all ordels placed by and for the DISD pursuant to this Agreement. 7. REPRESENTATIONS AND wARRANTIES PAGE 2 of33 Further warranty information regarding the goods is outlined in Exhibit A- Management Summary/Scope of Services. 8. TERMINATION a. ! Either party may terminate this Agreement without cause at any time by giving thirty (30) days written n~tice <if such tennination. In such an instance, the Contractor shaH be entitled to compensation fOf goods delivered or services performed up to the effective date of tennination. b. i The District shall retain the continuing right to terminate this Agreement without penalty ..t the end of each fiscal y~ar. c. , Upon receipt of written notice that this Agreement is terminated, the Contractor will submit an invoice to the DISD for an amount that represents the value of goods delivered and services actually performed up to the date of termination for which the Contractor has not previously been compensated as per paragraph 6 above. For goods or services for which the DISD agreed to pay on a payment schedule, invoices for payments due shall be submitted at the agreed upon time. Upon approval and payment ofthis/these invoice(s) by DISD, DISD shall be under no further obligation to the Contractor, monetarily or otherwise. 9. lNDEPENDENT CONTRACTOR The Contractor shall be deemed at all times to be an independent contractor and shall be wholly responsible for th~ manner .In which it performs the services required of it by the terms of this Agreement. The Contractor shall be liable for any act or acts of its own, or its agents or employees, and nothing contained herein shall be construed as creating the relationship of employer and employee between the DISD and the Contractor or its agents and employees. 10. MODIFICATION OF AGREEMENT The parties may amend this Agreement in writing by mutual consent. Changes, including any increase or decrease in the amOl.Ult of the Contractor's compensation, shall only be effective upon the execution of a duly authorized written amendment to this Agreement. 11. ASSIGN}.,fENT AND SUBCONTRACTING The Contractor is prohibited from assigning this Agreement or any services provided pursuant to this Agreement unless such assignment is agreed to in writing by DISD, at the sole discretion of the District, and executed in the same manner as this Agreement. In the event Contractor elects to subcontract a portion of the services provided under this Agreement, Contractor shall request approval of the subcontractor from the District and the District shall approve or rej ect such request within sixty (60) days. If the District does not approve orrej eet such request within sixty (60) days, Contractor's request to utilize the applicable subcontractor shall be deemed approved. PAGE 3 of33 No party on the basis of this Agreement shall in any way contract on behalf of or in the name of the other party of this Agreement, and violation of this provision shall confer no rights on any party and shall be void. 12. ADMINIS1RATlVE REMEDY FOR AGREEMENT INTERPRETATION In consideration of this Agreement, Contractor agrees that, prior to pursuing any other remedy, it will fIrst obtain a ~etermination by the General Superintendent as to the true meaning and intent of the Agreement. 13. ,BANKRUPTCY In the event that either party shall cease conducting business in the normal course, becorn~ insolvent, make a gener~l assignment for the benefit of creditors, suffer or pennit the appointment of a receiver for its business or assets or shall avail itself of, or become subject to, any proceeding under the Federal Bankruptcy Act or any other statute qf any sta~e relating to insolvency or the protection of rights of creditors, then at the option of the other party, this. Agteement shall terminate and be of no further force and effect, and any property or rights of such other party, tangibl~or intangible, shall forthwith be returned to it. 9. CONFLICT OF INTEREST AND COMMUNICATIONS Contractor Wlderstands and certifies that it does not know of any facts relating to the award of this Agree~ent that would constitute a violation of Texas Local Government Code Section 171.004. In accordance with Board Policy eRE (Local) and any successor policy, Contractor also ::'.ereby certifIes to the .best of its kIl,o~ledge and belief that no current Board member or employee of DISD, and no one who has been a Board tmember iwithin the last five (5) years or an employee of the DISD within the last two (2) years, has participated in bidding, selling or promoting this Agreement. Furthermore, Contractor certifies to the best of its knowh~dge and belief that no such current or former Board member or employee will derive any pecuniary interest, compepsation or services, directly or indirectly, from this Agreement. Contractor understands that notwithstanding any provision ~f law to the contrary any violation of this provision of the Agreement shall make the Agreement voidaqle by theDISD. During the term of this Agreement Contractor shall not connnunicate with individual members of District's Board with regard to this Agreement. Should Contractor deem it necessary to communicate with the Board, with regard to this Agreement, such communication shall be in writing to all members of the Board, with a contemporaneous copy to the General Superintendent. 15. INDEMNffiCATION CONTRACTOR COVENANTS AND AGREES TO FULLY INDEMNIFY. DEFEND AND HOLD HARMLESS THE DISD AND ITS TRUSTEES, MEMBERS, AGENTS, EMPLOYEES, OFFICERS, DIRECTORS AND REPRESENTATIVES OF THE DISD, INDIVIDUALLY OR COLLECTIVELY, FROM AND AGAINST Ac~ AND ALL COSTS, CL..uMS, LIENS, DAMAGES, LOSSES. EXPENSES, FEES, FINES, PENAL TIES, PROCEEDINGS, ACTIONS, DEMM'DS, CAUSES OF ACTION, LIABILITY AND SUITS OF ANY KIND AND NATURE, INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY OR DEATH AND PROPERTY DAMAGE, MADE UPON DlSD DIRECTLY ARISING OUT OF, RESULTING FROM OR RELATED TO CONTRACTOR'S NEGLIGENT PERFORMANCE OF THIS AGREEMENT, INCLUDING ANY NEGLIGENT ACTS OR OMISSIONS OF CONTRACTOR, ANY AGENT, OFFICER, PAGE 4 of33 DIRECrOR, llliPRESENTATIVE, EMPLOYEE, CONTRACTOR OR SUBCONTRACTOR OF CONTRACTOR AND THEIR RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, DIRECTORS AND REPRESENTATIVES WHILE IN THE EXERCISE OF PERFORMANCE OF THE RIGHTS OR DUTIES UNDER, TIDS AGREEMENT. TIllS OBLIGATION SHALL NOT APPLY TO THE EXTENT SUCH CLAIM,S, COSTS, DAMAGES OR LOSSES ARE CAUSED BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF THE DISD OR ITS EMPLOYEES. CONTRACTOR SHALL PROMPTLY ADVISE THE DISUIN ~TING OF ANY CLAIM OR DEMAND AGAINST THE DISD OR CONTRACTOR KNOWN TO CONTRACTOR RELATED TO OR ARISING OUT OF CONTRACTOR'S NEGLIGENT PERFORMANCE OF TIDS AGREEMENT AND SHALL SEE TO THE INVESTIGATION OF AND DEFE~SE OF SUCH CLAIM OR DEMAND AT CONTRACTOR'S COST. THE DISD SHALL HAVE rim RIGHT, AT ITS OPTION AND AT ITS OWN EXPENSE, TO PARTICIPATE IN SUCH DEFENSE WITHOUT RELIEVING CONtRACTOR OF ANY OF ITS OBLIGATIONS UNDER THIS PARAGRAPH. 16. INSURANCE Contractor will not be issued a Purchase Order and / or this Agreement shall not be in effect until evidence of the required insurance is provided. All payments and certificates of insurance must be submitted with this Agreement. 16.1 CLASSES OF RISK Class D - High limits '-service contracts above $100,000 Contract and insurance requirements: . Hold Harmless Agreement . Waiver of Subrogation . District named as additional insured on general liability and automo')ile coverages Workers' Compensation Employer's Liability Statutory Limits $500,000 per accident/$500,000 per person General Liability Bodily injury & Property damage $1,000,000 combined single limits / $2,000,000 aggregate Automobile Liability Bodily injury Property damage $250,000 per person/$500,000 per accident $250,000 Umbrella Policy $1,000,000 per occmence/$l,OOO,OOO aggregate All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specification, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted: Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least B+. PAGE 5 of33 Liability policies shall be endorsed to provide the following: . Name as additional insured the District. . That.such insurance is primary to any other insurance available to the additional insured. . All policies shall be endorsed to provide thirty (30) days prior written notice or l.;ancellation, non- renewal or reduction in coverage. .. Should any of the required insurance be provided under a claims-made form, Contractor shall maintain such coverage continuously throughout the term of this contract and without lapse. for a period of three years beyond the contract expiration, such that occurrences arising during the contract term which give rise ~o claims made after expiration of the contract shall be covered. .16.2 iINDEPENDENTCONTRACTORSTATUS Contrac~or recognizes that it is engaged as an independent contractor and acknowledges that the District will : have no: responsibility to provide transportation, insurance or other. fringe benefits nonnally associated with : employee status. Contractor. in accordance with its status as an independent contractor, covenants and agrees that it shall conduct itself consistent with such status, that it will neither hold itself out as nor claim to be an officer. ,partner, employee. or agent of the District by reason hereof, and that it will not by reason hereof make any claim, demand or application to or for any right or privilege applicable to an officer, partner, employee or agent of the District, including, but not limited to, unemployment insurance benefits, social security coverage, or retirement benefits. Contractor hereby agrees to make its own arrangements for any of such benefits as it may desire and agrees that it is responsible for all income taxes required by applicable law. 16.3 COMPLiANCE WIlli LAWS In the;execution of the Agreement, the Contractor must comply with all applicable State and Federal laws, including but not limited to laws concerned with. labor, environment, equlil employment opportunity, safety and ; . - ., . mininiwn wages. The Contractor shall make itself familiar with and at all times shall observe and comply with all Federal, State and Loca1laws, ordinances and regulations which in any manner affect the conduct of the Work, and shall indenmify and save harmless the Dallas Independent School District and the Board and its official andlor contractual representatives against any claim arising from violation of any such law, ordinance or regulation by itself or by its subcontractors, or its employees. When requested, competent evidence of compliance with applicable laws shall be furnished. The Contractor shall cooperate with applicable city or other governmental officials at all times where their jurisdiction prevails. The Contractor shall make application for any permits and pennanent utilities, which are required for the execution of the Agreement. 16.4 RIGHT TO AUDIT At any time during the term of this Agreement and for a period of four (4) years thereafter the District or a duly authorized audit representative of the District, or the State of Texas, at its expense and at reasonable times, reserves the right to audit Contractor's records and books directly relevant to all services provided PAGE 60f33 ?I1der this Contract. For any such records requested by the District that Contractor maintains electronically, Contract,!r shall provide such records to the District, but shall not be required to grant direct access (i.e., . password protected access) to its proprietary computer systems to the District. In the event such an audit by . . th.e District reveals any errors/overpayments by the District, the Contractor shall refund the District the full amount of such overpayments within thirty (30) days of such audit fmdings,or the District, at its option, ireservesthe right to deduct such amounts owing the District from any payments due the Contractor. 16.5 ACCESS TO DOCUMENTS :To the ~xtent applicable to this procurement, in accordance with applicable Public Law, Contractor agrees , to allow, during and for a period of not less than four (4) years after the Agreement te:m, access to this : Agreement and its books,. documents, and records; and contracts between Contractor and its subcontractors or related organizations, including books, documents and records relating to same, by the Comptroller General of the United States, other governmental investigative agency, or their duly authorized represe~tative(s), legally authonzed to investigate alleged fraud, overcharge, or other diversion of funds from a public school district receiving Federal and State public funds. 16.6 PROPOSAL GUARANTY BOND REOUIREMENTS In submitting its Proposal, Contractor understands and agrees to be bound by the following tenns and conditions: A. Proposal Guaranty B()nd . NOT REQUIRED 17. LIABILITY POLICIES The form of all insurance policies required by Section 16 shall be subject to the approval of the District's Risk Manager. Prior to the commencement date of this Agreement, Contractor shall deliver to DISD certificates confmning the required insurance. Contractor shall make available to DISD complete copies of the policies for DISD's review at Contractor's corporate offices. The Contractor, or its insurer, shall notify the DISD in writing at least. thirty (30) days in advance of any cancellation, non-renewal or reduction of any of its insurance policies required under this Agreement. 18. NON-DISCRIMINATION Contractor shall at all times provide the services hereunder in compliance with all laws with respect to discrimination. No person shall be subjected to discrimination on the grounds of race, color, religion, national origin, sex, sexual orientation, age, marital status and/or mental disability, physical handicap, matriculation or political affiliation. Contractor shall post notice of such non-discrimination in. a conspicuous place. . 19. PROPRIETARY INFORMA nON OF DlSD PAGE 7 of33 the Contractor understands and agrees that, in its performance under this Agreement or in contemplation thereof, $e Contractor may have access to private or confidential information that may be owned or controlled by the DISD and that such information may contain proprietary details, the disclosure of which to third parties will be damaging to DISD, its employees or students. The Contractor also understands and agrees that the disclosure of such infqnnation ~y violate state and/or federal1aw and may subject the Contractor to civil liability. Consequently, Contractor agrees that an information disclosed by the District to the Contractor shall be held in confidence and used only in performance of the Agreement. The Contractor shall exercise the same standard of care to protect such information as is Used to protect its own proprietary data. 20. THIRD PARTY INTELLECTIJAL PROPERTY RIGHTS DISD warrants that it will not present to Contractor orders which involve the reproduction of materials protect~d under copyright, patent .and/or trademark law unless DISD owns such rights, is an authorized agent of the owner of such rights or has permission to reproduce the materials. In addition, DISD represents and warrants that it will not use the provision of services by Contractor to DISD to violate any law, infringe or violate any intellectual property rights or other rights of third parties including, without limitation, committing. any fraud, violating any rights Of publicity, rights of privacy,copyrights, trademarks, trade secrets and/or licenses, or patellts. DISD grants Contractor permission allowing authorized representatives designated by DISD to reproduce DISD's copyright and trade1J!lU"k~prote:cted materials without restriction for the term of this Agreement. Unless specified otherwise by DISD dn writing, DISD designates all of its employees as DISD's authorized representatives for purposes of this . provision. 21.. LIMITATION OF LIABILITY In no event will either party be liable to the other for lost profits, special, incidental, punitive, consequential or indirect damages (including lost profits) arising under this Agreement, whether based in contract, tort (including negligence), intended conduct or otherwise, even if that party has been advised of the possibility of such damages. the aggregate amount of any liability of Contractor for any claim(s) arising from or relating to th...s Agreement will not exc eed, in. any event, the. amount paid to Contractor under this Agreement for the performance of services during the twelve (12) months immediately preceding the date on which the claim arose. 22. MIWBE PLAN Contractor agrees to allocate work to subcontractors and vendors, which are historically underutilized businesses in accordance with the Minority and Women Owned Business Enterprise (MiWBE) forms and guidelines attached hereto as Exhibit E. No changes to the Plan may be made unless approved in writing by the District. Contractor, prior to the execution of this Agreement, shall report its MAVBE participation goal as a percent of the Contract Sum. During the performance of all Work under this Agreement, Contractor and its agents shall comply with all MlWBE policies of the District. The informatioo shall be identified per firm, discipline and participation. While this Agreement is in effect and until the expiration of one year after final completion, the District may require information from the Contractor, and may conduct audits, to assure that the Plan is being, and was, followed. Contractor shall provide District with quarterly reporting of it.~ MIWBE utilization, or as requested by the J\1!WBE PAGE 8 of33 Departm~nt. GeIJ-uine Parts Company shall have thirty (30) days to comply with any request outside the normal quarterly reporting period. Should Contractor propose the deletion of a W\VBE classified/certified subcontractor or vendor from its employ, :the ContractOT shall substitute a subcontractor or vendor of like classification/certification, and if Contractor is unable to substitute a subcontractor or vendor of like classification, Contractor shall provide District with documep.tation of its best efforts to acquire the services of a M/WBE replacement firm. Changes to the list of subcon~actors :rn,ust be reviewed and approved by the M/WBE Department prior to any changes. If the District does not approve or reject such changewitbin sixty (60) days, Contractor's change shall be deemed approved. 23JFELONY CONVICTION AND CRIMINAL BACKGROUND CHECK Contradtor must give advance notice to the District if the person or an owner or operator of the business entity has been convicted of a felony. The notice must include a general description oftbe conduct resulting in the conviction of a: felony. The District may terminate this Agreement if the District detennines that the person or busineSs < entity failed to give notice as required by this paragraph or misrepresented the <:onduC't resulting in the conviction. This paragraph requiring advance notice does not apply to a publicly held corporation. Contractor will obtain criminal history record information that relates to an employee, applicant for employment, or agent of the Contractor if the employee, applicant, or agent has or will have continuing duties related to the, contract~d services; and the duties are or will be performed on school property or at another location where studen.ts are regularly present. Contractor shall certify to the District before beginning work and at no less than an annlllilbasisthereafter that criminal history record information has been obtained. Contractor shall assume all e;xpeilses associated with the background checks, and shall immediately remove any employee or agent who was convicted of a felony, or misdemeanor involving moral turpitude, as defmed by Texas law, from District property or othe~ location where students are regularly present. District shall be the [mal decider of what constitutes a "location where students are regularly present." Contractor's violation of this section shall constitute a material breach of the Agreement. If Contractor is the person or owner or operator of the business entity, that individual may not self-certify regarding the criminal history record information and its review, and must submit original evidence acceptable to the District with this Agreement showing compliance. 24. ENTIRE AGREEMENT~ The following attached instruments are hereby made a part of this Agreement by this reference: 1.) RFP 202737/Addendum, 2) Genuine Parts Company Response to RFP 202737 dated March 28, 2005, 5) Exhibits A, B, C. D, E, F and G. These instruments together with this Agreement contain the entire Agreement between the parties and no warranties, expressed or implied, representations, promises, or statements have been made by either party unless endorsed herein in writing. T~ the extent there is any conflict the following order of precedence shall govern: 1.) This Agreement, 2.) Genuine Parts Company Response to RFP 202737, dated March 28, 2005, 3.) RFP 202737/Addendum, 4.) Provisions related to the DISD shall prevail over inconsistent general provisions, terms and conditions, and S.) Exhibits A, B, C, D, E,F and G. No change or waiver of any provision hereof shall be valid uhless made in \,;Tiring and executed in the same manner a.s this Agreement. PAGE 9 of33 25. NO WAIVER OF IMMUNITIES Neither the execution of this Agreement by the District nor any other conduct of any representative of the District relating to: the Agreement shall be. considered a waiver of governmental imrrnmities available to the District. 26. CAPTIONS The captions of paragraphs in this Agreement are for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction. 27. GOVERNING LAW ,This Agreement and all of the rights and obligations of the parties hereto and all of the terms and conditions hereof shall be construed, interpreted and applied in accordance with and governed by and enforced under the laws o{the State of Texas. 28. WAIVERS No delay or omission by either of the parties hereto in exercising any right or power accruing upon the non-compliance ,or failure of perfonnance by the other party hereto of any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either oftbe parties hereto of any of the covenants, conditions or agreements hereof to be performed by the other party hereto shall not be construed to be a waiver of any subsequent breach thereof or of any other covenant, condition or agreement herein contained. 29. SEVERABILITY In case any provision hereof shall, for any reason, be held invalid or unenforceable in any respect, such invalidity or Ullenforceability shall not affect any other provision hereof, and this Agreement shall ae construed as if such invalid or unenforceable provision had not been included herein. 3.0. FAMILY CODE CHILD SUPPORT CERTIFICATION By signing this Agreement, the undersigned certifies as follows: "Under Section 231.006, Texas Family Code, the vendor or applicant certifies that the individual or business entity named in this contract, bid, or application is not ineligible to receive the specified grant, loan, or payment and acknowledges that this Agreement may be terminated and payment may be withheld if this certification is inaccurate." 31. SALES TAX CERTIFICATION By signing this Agreement, the undersigned certifies as follows: "Under Section 2155.004, Texas Government Code, the ME Finn(s) certifies that the individual or business entity named in this bid or Agreement is not ineligible to receive the specified Agreement and acknowledges that this Agreement may be terminated and payment withheld if this certification is inaccurate." 32. USE OF DISTRICT'S MATERIALS Contractor acknowledges and agrees that the District has an interest in maintaining and othenvise protecting the image and reputation of the DISD official logo or emblem and any other trademarks, copyrighted or otherwise protected materials of the District (hereinafter referred to as the "Owner's Protected Materials"), aLd that in order to accomplish this purpose, the District must in all cases assure itself that the Owner's Protected Materials are at all times used in a manner consistent with the DISD po:!.icies, administrative regulations, and this Agreement. PAGE 10 of33 ; Contractor agrees that the District must, therefore, have the right to examine and to approve or disapprove such use: in writing in advance of use, the contents, appearance and presentation of any and all advertising, promotio~al or other similar materials proposed by Contractor to be used in connection with any advertising or promotiop. utilizing Owner's Protected Materials. 9ontractor therefore agrees that it: 1. Will not produce, publish or in any manner use or distribute any such advertising promotional or other materials prepared by or on behalf of the Contractor that have no~ been submitted to and approved in writing in advance by the District; 2. Will submit to the District for its examination and approval or disappro.al, in advance of use, samples of such materials together with the script, text, coloring, storyboards and a copy of any photograph proposed to be used. 3. The District agrees that it will promptly hereunder to Contractor examine and either approve or disapprove each submission and promptly notify Contractor of its approval or disapproval. ; The District, on behalf of its minor schoolchildren. reserves the absolute right in its sole discretion to rej ect the content of any submission. Contra\?tor agrees thatnotbing contained in this Agreement shall give to the Contractor any right, title or inten:stin the Owner's Protected Materials and that the Owner's Protected Materials are,and areta be, the sole properW of the District and that any and all use by the Contractor of the Owner's Protected Materials, and the goodwill arising therefrom, shall inure to the benefit of the District. 33. AUDIT AND INSPECTION OF RECORDS Records of Contractor's costs, reimbursable expenses pertaining to the work pursuant to the Agreement and payments shal1be available to District or its authorized representative during business hours and shall be retained for three years after final Payment or tennination of the Agreement, unless District otherwise instructs the Contractor in writing. At any time during the tenn of this Agreement and for a period of four (4) years thereafter the District or a duly authorized audit representative of the District, or the State of Texas, at its expense and at reasonable times, reserves the right to audit the Contractor's records and books directly relevant to all products and services provided undt;r this Agreement. For any such records requested by the District that Contractor maintains electronically, Contractor shall provide such records to the District, but shall not be required to grant direct access (Le., password protected access) to its proprietary computer systems to the District. In the event such an audit by the District reveals any errors!overpayments by the District, the Contractor shall refund the District the full amount of such overpayments within thirty (30) days of such audit fIndings, or the District, at its option, reserves the right to deduct such amounts owing the District from any payments due the Contractor. To the extent applicable to this proc..rrement, in accordance with applicable Public Law, the Contractor agrees to allow, during and for a period of not less than four (4) years after the Agreement term, access to this PAGE 11 oB3 AgreeInent and its books, documents, and records; and contracts between Contractor and its subcontractors or vendors 'or related organizations, including books,documents and records relating to same, by the Comptroller General ,Of the Upited States, other governmental investigative agency, or their duly authorized representative(s), legally allthorizeq.to investigate alleged fraud,~overcharge, or other diversion of funds from a public school district receivinf Federal.and State public funds. 34.;. . DIS~UTE RESOLUTION Anyclairil, dispute or other matter in question arising out of or related to this Agreement shall be subject to nori.~bin~ingme~iation as a condition precedent to the institution of legal or equitable proceedings by either party. Thepll.lti.es shall'share the mediator's fee arid any filing fees equally. The mediation shall be held in Dallas, Texas. Venue for any litigation involving rights or arising under this Agreement shall be Dallas County, Texas. 35J NOTICES TO THE ;PARTIES All notices to be given by the parties hereto shall be in writing and served by depositing same in the United States' Post Office, postage prepaid and r~gistered as follows: . . TO DisD: Dallas Independent School District Michael Brown 3700 Ross Avenue, Box 22 Dallas, TX 75204 TO TIlE CONTRACTOR: . Genuine Parts Company Dean C. Rooks 3033 Military Parkway Mesquite, Texas 7149 36. p'ERFORMANCE BOND The Contractor, at its own expense, shall furnish the District a perfonnance bond and a payment bond as required by Chapter 2253, Public Work Performance And Payment Bonds, Texas Government Code, or its successor ordiriances covering the full performance of the Agreement and the payment of all obligations arising thereunder. This Agreement shall not be in effect until such performance and payment bonds are furnished by the Contractor and approved by the District. 36.1 A good and sufficient performance Bond in the amount of 100% of the total amount proposed, guaranteeing the full and faithful execution of the Services and performance of the Agreement in accordance with the RFP and the Contract documents. 36.2 A good and sufficient Payment Bond in the amount of 100% of the total amount proposed, guaranteeing the full and proper protection of all claimants supplying labor and material in the prosecution of the Services provided for under the Agreement and for the use of each such claimant. 36.3 Each of the above-described bonds shall be executed by the Contractor and one corporate Surety authorized to do business in the State of Texas and acceptable to the District. The Surety shan designate an agent resident in Dallas, Texas, to whom any requisite notices may be delivered and on whom service of process may be had in matters arising out of such suretyship. The Contractor shall be required to absorb any and all costs of said Bonds. PAGE 12 of33 36.4 ~ach of the above-described bonds shall be executed by the Contractor and one corporate Surety authorized to do business in the State of Texas and acceptable to the District. The Surety shall designate an agent resident in Dallas, Texas, to whom any requisite notices may be delivered and on :whom service of process may be bad in matters arising out of such suretyship. The Contractor shall be required to absorb any and all costs of said Bonds. 37. INTERLOCAL AGREEMENT : Contractor understands and certifies that governments are authorized by the Interlocal Cooperation Act, V, t .C.A. Government Code, Chapter 791, to enter into j oint contracts and agreements for the performance of goverDIPental n.u1ctions and services including administrative functions normally associated with the operation of goyernment such as purchasing of necessary materials and supplies. Contractor agrees a locar government that purchases goods and services under this agreem.:;nt satisfies the requirement oftlte local governmentto seek competitive bids for the purchase of the goods and services. Contractor agrees ~o provide the goods and services under this agreement to participating governments in accordance with the lnterlocal Agreement Clause attached hereto as Attachment C. PAGE 13 of33 INWI11'ffiSS WHEREOF the parnes hereto have executed this Agreement the year and date first above written. DALLAS INDEPE~L>ENT SCHOOL DISTRICT 3700 :R~ss Avenue Dallas, Texas 75204 GENIDNE PARTS COMPANY 3033 Military Parkway Mesquite, Texas 75149 By: Lois Parrott, Ph.D. (pRINT N"wE OF DISTRICT REPRESENTATIVE) By: ~ c. S""',~ (PRINT NAME OF PERSON SIGNiNG FOR CONTRACTOR) . Signatllfeand Date: ~ .^ ';;;)~ -.'r~'.VL- ..- (DIST/UI TREPRESENTATIVE SIGNATURE) S1\ and. D'~_ . ~ A~..~ S~ (CONTRACTOR REPRESENTATIVE SIGNATURE) Title: Title: BoatdPresident ~\'E'PI.G\~E"N\ By: Nancy,Bingham. (PRiNT IYAME OF BOARD SECRETARY) APPROVED AS TO FORM: PAGE 14 uf33 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS BY WAY OF AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM PARTICIPATION AGREEMENT WITH THE DALLAS INDEPENDENT SCHOOL DISTRICT UNDER SECTION 271.102 OF THE LOCAL GOVERNMENT CODE, FOR THE PURCHASE OF PRODUCTS AND SERVICES FOR AN ONSITE VEHICLE PARTS FACILITY; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 3405- INTERLOCAL AGREEMENT FOR THE PURCHASE OF PRODUCTS AND SERVICES FOR AN ONSITE VEHICLE PARTS FACILITY WITH THE DALLAS INDEPENDENT SCHOOL DISTRICT, CONTRACT AWARDED TO GENUINE PARTS COMPANY IN THE ESTIMATED AMOUNT OF $839,946). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee is hereby authorized to purchase products and services for an onsite vehicle parts facility in the estimated amount of $839,946 from Genuine Parts Company under competitive bids received by the Dallas Independent School District in accordance with an Interlocal Cooperative Purchasing Program Participation Agreement under Section 271.102 of the Local Government Code which is on file in the office of the Purchasing Agent. SECTION 2. The City Manager, or his designee is authorized to expend funds pursuant to the agreement for the purchase of various goods and services. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 4-0RD-File 3405 ~ AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Frank Payne 349-8946 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance authorizing the City Manager or his designee to execute a professional services agreement with the firm of Arthur Surveying Co., Inc. to provide professional surveying services in support of the City of Denton Engineering Department; authorizing the expenditure of funds therefore and providing an effective date (PSA 3219-in an amount not to exceed $200,000). (The Public Utility Board approved this item by a vote of 4-0). PSA INFORMATION The City of Denton Engineering Department desires to contract with a qualified surveying firm for the delivery of routine surveying services on a work order basis during the 2005-06 fiscal year. Surveying services will include, but not be limited to, providing construction staking, field design surveys, topographic surveys, boundary surveys and analysis, preparation of easement or right-of-way exhibits, GPS monument placement, and other professional surveying services as required. In October of 2003, eleven proposals for survey services were submitted for evaluation. A selection committee consisting of representatives from Engineering, Water Utilities, Purchasing, and Electric Utilities reviewed the proposals. The top five proposals were ranked according to their response to criteria assessing demonstrated competence and qualifications to perform the services required. The Committee ranked Arthur Surveying Co., Inc. the highest based on the information submitted in their response. Subsequent to selection, negotiations with Arthur Surveying resulted in rates for survey crews, registered professional land surveyors, and administrative support that were at or below levels funded within the Engineering Department budget for these services. This, coupled with the fact that the City will only be charged for services when services are performed, will allow for cost effective, responsive survey services to City departments. The award of this agreement for 2005-06 will extend the same services with no change in price, terms, or conditions. Section 252.022 of the Local Government Code provides that professional services do not have to be bid. PRIOR ACTIONNIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its September 12, 2005 meeting. Agenda Information Sheet September 20, 2005 Page 2 RECOMMENDA TION We recommend award of PSA 3219 to Arthur Surveying Co., Inc. in an amount not to exceed $200,000. PRINCIPAL PLACE OF BUSINESS Arthur Surveying Co., Inc. Lewisville, TX ESTIMA TED SCHEDULE OF PROJECT This Professional Services Agreement will begin upon Council approval and be in effect for one year with an estimated expenditure of $200,000. FISCAL INFORMATION Funding for this service will be provided from individual project accounts for each department. All surveying for the Engineering department will be funded from account 351001.7875. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Letter from Arthur Surveying 1-AIS-RFP 3219 co 0 I2l Attachment 1 Arthur Surveying CO.I' Inc. Profes~ional L;md Surveyors ""'------0_._ 220 Elm Street Suite #200 P.O. Box 54 LewisvifJe, Texas 75067 (972) 221-9439 Fax (972) 221-4675 July 25,2005 Frank Payne P.E. City of Denton j Engineering City Hall East 60 I K Hickon'. Suite B ~. Denton, IX 76205 Reference: 2005 / 2006 Contract Dear Frank, It has been a pleasure serving the City of Denton for the pa....t year. T look forward to continuing 01l1: successful business relationsbip. Please accept this letter as authorization from Arthm Surveying Co., Inc. to continue our services for another year at the same fee schedule as the contracted 2004/2005 year. As always, please fed free to contact me with any questions of Comments. llelY, vt DOl'~~hur President / R.P.LS. Arthur Surveying Company, Inc. ~NIAa~ID1S HfiHLHV SL9t 166 6L6 IVd 60:91 NOW SO/SZILO ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH THE FIRM OF ARTHUR SURVEYING CO., INC. TO PROVIDE PROFESSIONAL SURVEYING SERVICES IN SUPPORT OF THE CITY OF DENTON ENGINEERING DEP ARTMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE AND PROVIDING AN EFFECTIVE DATE (PSA 3219-IN AN AMOUNT NOT TO EXCEED $200,000). WHEREAS, The professional services provider (the "Provider) mentioned in this ordinance is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, The fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional associations applicable to the Provider's profession and such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to enter into a professional service contract with Arthur Surveying Co., Inc. to provide professional surveying services for the City of Denton Engineering Department, a copy of which is on file in the office of the Purchasing Agent and incorporated by reference herein. SECTION 2. The City Manager is authorized to expend funds as required by the attached contract. SECTION 3. The findings in the preamble of this ordinance are incorporated herein by reference. 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, CITY ATTORNEY BY. ~ 3-0RD-PSA 3219 Renewal 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR SEPTEMBER 12, 2005 9:00 A. M. DRAFT 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 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, Sept 12, 2005 at 9:12 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Charldean Newell, Dick Smith John Baines arrived at approximately 11 :06 a.m. EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Phil Gallivan 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 4. 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. Page 1 of 2 1 2 1) Consider recommending approval authorizing the expenditure of funds for payments by the 3 City of Denton for electrical energy transmission fees to those cities and utilities providing 4 energy transmission services to the City of Denton; and providing an effective date (File 5 3396-Electrical Energy Transmission Fees in the total amount of $134,421). 6 7 2) Consider recommending approval for the purchase and installation of replacement Caron 8 landfill compactor wheel tips for use on the Caterpillar Model 826 compactor at the City's 9 landfill from Caron Compactor Company, Escalon, CA., in the amount of $34,397.84. 10 11 3) Consider recommending approval of an ordinance authorizing the abandonment and release 12 of certain blanket electric utility easements owned by the City, to the extent that they 13 encumber certain real property owned by Holigan Land Development, Ltd. containing 14 approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 15 1330, Denton, Denton County, Texas. 16 17 4) Consider recommending approval of a Professional Services Agreement between the City of 18 Denton and Arthur Surveying Co., Inc for the delivery of routine surveying services on a 19 work order basis for fiscal year 2005-2006, in an amount not to exceed $200,000.00. 20 21 Board Member Dick Smith moved to approve Consent Agenda Items 1-4 with a second 22 from Board Member Bob Bland. The motion was approved by a vote of 4 to O. 23 Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 Questions concerning this report may be directed to Scott Payne, 349-7836 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance accepting sealed proposals and awarding a two-year contract for Benefit Consultant Services for the City of Denton; providing for the expenditure of funds therefore and providing an effective date (RFP 3355-Benefit Consultant Services awarded to McGriff, Seibels and Williams in the annual amount of $48,500). BACKGROUND The City of Denton has utilized the services of a consultant for our various employee and retiree benefits since the early 1990's. These benefits include health, dental, vision, life, supplemental life, accidental death and dismemberment (AD&D) as well as short and long term disability. The City initially contracted with Foster Higgins Insurance, Actuary and Consulting Services who later merged with Mercer in FY 97/98. Our cost with Mercer was $5.00 per employee per month not to exceed $70,000 per year. We began working with our current consultant, McGriff, Seibels and Williams in July of 2002 at an annual cost of $48,500. As directed by Council, the City of Denton submitted RFSP #3355 to the market place on June 14, 2005, with a due date of July 15, 2005. The following firms provided responses to RFSP #3355: Grizzaffi Darby Holmes Murphy McGriff, Seibels and Williams Rael & Letson - Disqualified (did not supply Addendum #1 Acknowledgement Form) RWL Group Segal- Disqualified (did not supply Addendum #1 Acknowledgement Form) Smith & Associates The attached report provides greater details regarding the respondents, the overall RFSP review process, and staff s recommendation. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) The Council received a report on this topic during the September 6, 2005 Work Session. The Council stated they wanted an additional week to review the information and requested that the topic be brought back during the September 13, 2005, meeting. During the September 13, 2005, meeting, Council gave approval to contract with McGriff, Seibels and Williams for Benefit Consulting Services. Agenda Information Sheet September 20, 2005 Page 2 FISCAL INFORMATION Funds for the Benefits Consultant are budgeted in the FY 05/06 budget in 911001.7854. EXHIBITS Attachment 1 - Evaluation of Benefits Consultant RFSP #3355 Attachment 2 - Letter from Employee Insurance Committee (EIC) Attachment 3 - Copy ofRFSP #3355 Attachment 4 - Evaluation Grid Attachment 5 - Ordinance Respectfull submitted: · ';0: ~'J ~ Diana G. Ortiz Director of Fiscal Operations Attachment 1 - Evaluation of Benefits Consultant RFSP #3355 Review Team The qualified responses were evaluated by a Review Team approved by the City Manager. The Review Team consisted of: . Amanda Green, Parks Program Area Manager and Chairperson of the Employee Insurance Committee (EIC) . Katherine Barnett, Utility Communications & Special Projects Coordinator and a member of the EIC . Tom Shaw, Purchasing Agent . Carol Plant, Health Benefits Administrator . Scott Payne, Risk Manager . Diana Ortiz, Director of Fiscal Operations Evaluation The Evaluation Team evaluated the five responsive respondents and eliminated RWL Group and Smith & Associates. The remaining three respondents were evaluated based on the following weights, as set forth in the RFSP: 40% - Capability of Proposer to provide the services outlined in Section III 20% - Experience (Municipal Preferred and/or 1200+ Employees) 10% - References for Clients (Municipal Preferred) 20% - Cost of Services 10% - Response to Supplemental Questionnaire and Miscellaneous Provisions Additionally, the Review Team conducted in-person interviews with the remaining three respondents. The interview was limited to 30 minutes for each group. The below table illustrates the total points and average points assigned by the Review Team to each respondent based on their responses to the RFSP and their interview: ResDondent Total Points A vera2:e Points McGriff, Seibels & Williams 518 86.33 Holmes Murphy 474 79.00 Grizzaffi Darby 394 65.67 RWL Group NR NR Smith & Assoc. NR NR Rael & Letson DQ DQ Segal DQ DQ NR = Not Reviewed DQ = Disqualified 1 Pros and Cons of Top Three The below information details the pros and the cons of the top three respondents: McGriff. Seibels and Williams (MSW) Pros: . As the incumbent, MSW has a proven track record of successful performance for the City of Denton: o For the plan year beginning January 2004, MSW successfully transitioned the City's health plan from Cigna to United Healthcare, resulting in greater benefits for employees, retirees and dependents and saving the City approximately $700,000. o For the plan year beginning January 2005, MSW successfully negotiated a renewal with United Healthcare saving the City approximately $600,000. o Worked with the City and the EIC to develop the plan design changes that will go into effect January 2006. The plan design changes and MSW's negotiations could save the City approximately $1,670,000 in 2006. . MSW is the 6th largest consulting/brokerage firm in the US and the ih largest in the world. . 100 year history of insurance service as a company . Approximately 18 public entity clients representing 32,000 employees, including Bexar County, City of Garland, City of Grand Prairie, City of Harlingen, City of Mesquite, City of San Marcos, City ofLewisville, and Collin County. . Represent approximately 8,500 covered lives placed with United Healthcare, the City's current health insurance company. . Gold level status with United Healthcare. . Currently participates in various professional organizations for public entItIes including Texas Chapter Public Risk Management Association (PRIMA), State and Local Government Benefits Association (SALGBA) and Texas Municipal Human Resources Association (TMHRA). . Account representative holds Life and Health Counselor License. Cons: . Current account team has only been involved with the City's account since March of2005. . Fee ($48,500) slightly higher than Grizzaffi Darby's proposed fee, but still not an . . Increase over prIor years. . Less lives placed with United Healthcare than Holmes Murphy. . Does not serve on the National Advisory Board of any insurance companies. 2 Holmes Murphv (HM) Pros: . One account executive (Preston Pomykal) was the City's account executive with MSW prior to March of 2005. . 70+ year history of insurance service as a company. . Provides in-house actuarial, legal and benefit communication teams. . Represents approximately 110,000 covered lives placed with United Healthcare. . 80% of total annual revenue comes from clients with 500 or more employees. . Currently participates in various professional organizations for public entities including Texas Chapter Public Risk Management Association (PRIMA), State and Local Government Benefits Association (SALGBA) and Texas Municipal Human Resources Association (TMHRA) as well as the Society for Human Resource Management (SHRM). . Platinum Level status with United Healthcare. . The President of the Dallas office was an inaugural member of and continues to serve on the National Advisory Council for United Healthcare. Additionally, HM personnel also serve on the National Advisory Councils for Aetna and Cigna. . Aggressively growing their public entity book of business with current clients of City of North Richland Hills, City of Round Rock, City of Waco, Jefferson County, City of Pampa, and the City of Brenham. Cons: . No proven track record with proposed account team. . Former MSW employee, Preston Pomykal, is prohibited from working with the City of Denton until February of 2007 due to a non-compete clause. . Proposed account team to be assigned to the City of Denton does not have as much public entity experience as MSW team. . HM is involved in a legal dispute with MSW over two former employees now working with HM. . Fee ($48,500) slightly higher than Grizzaffi Darby's proposed fee, but still not an . . Increase over prIor years. GrizzatJi Darbv (GD) Pros: . Locally owned and operated company since 1996. . Voted one of the Top 15 Places to Work in DFW. . Named as one of the Top 100 Fastest Growing Businesses in DFW. . Currently serves on the National Advisory Boards for BlueCross BlueShield of Texas, GE (Genworth), Great West, Guardian, Humana, PacifiCare, United Healthcare and UnumProvident. . Lower annual fee ($45,000) than MSW and HM. . Gold level status with United Healthcare. . Represent approximately 8,300 covered lives placed with United Healthcare. 3 . Relationships and interaction with local healthcare providers. . Account representatives hold Life and Health Counselor License. Cons: . No proven track record with the City of Denton. . Limited public entity experience with only the City of Corinth (127 employees) and Lamar County (185 employees) as public entity clients. . Limited experience with large employer groups (500 or greater employees). . Less lives placed with United Healthcare than Holmes Murphy or MSW. . Does not participate in professional organizations for public entities such as PRIMA, SALGBA or TMHRA. . 9-year history of insurance service as a company. Recommendation Based on the evaluation of the Review Team, the proposal of McGriff, Seibels and Williams ranked the highest in accordance with the criteria set forth in the RFSP. 4 Attachment 2 CITY OF DENTON. TEXAS 321 E. McKINNEY, DENTON. TEXAS 76201 Memorandum To: Mike Conduff, City Manager From: Amanda Green, Employee Insurance Committee Chair ~ Date: August 19, 2005 Re: Employee Insurance Committee (EIC) Recommendation for Benefit Consultant Services The purpose of the City's RSFP was to select a firm that can provide the City with innovative options and cost analysis as we further expand our efforts to reduce the ever increasing cost of insurance. The City received five responses to RSFP 3355 - Benefit Consultant Services for the City's insurance plan. The proposals were carefully evaluated by a City team that included representatives from the following departments: Risk Management (2), Purchasing (1), Utilities AdministrationlElC member (1), Finance (1), and Parks and RecreationlEIC Chair (1). The proposals were evaluated on the following criterion and weighted percentages: Capability of Proposer to provide services as outlined - 400,/0 Experience (Municipal Preferred and/or 1200+ Employees) - 20% References from Clients (Municipal Preferred) - 10% Cost of Services - 20% Response to Supplemental Questionnaire and Miscellaneous Provisions - 10% After an initial review of the proposals the top three candidates were asked to make a brief presentation to the panel. Each candidate was given 25 minutes to discuss the following topics: Why they should be selected (10 min) Top two trends in insurance industry (10 min) Questions and answers (5 min) www.citvofdenton.com ADA I EOE I ADEA TDD: (800) 735-2989 Based on this extensive screening process McGriff Seibels and Williams (MSW) was the unanimous first ranked candidate. MSW has a proven track record of providing innovative options and cost reduction analysis to the City of Denton. Their market presence and ability to negotiate insurance costs far outweighed that of the other candidates. MSW brings a wider breadth of experience representing large client groups and municipalities as compared to the other two candidates. They currently represent 13 municipalities in Texas and many more nationally; the other two candidates represent five municipalities and one municipality, respectively. During our last meeting, I shared the results of the screening process with the EIC and the Committee asked that I make a formal recommendation to you. Changes in the insurance industry and the need for significant changes in the employee health insurance program demand a partnership with a firm that is capable of providing the best service. The Employee Insurance Committee recommends that the City of Denton select McGriff Seibels and Williams as the City's Benefit Consultant. If you have any questions please contact my office at 349-8382. www.citvofdenton.com ADA I EOE I ADEA TDD: (800) 735-2989 Attachment 3 CITY OF DENTON Request for Sealed Proposal RFSP # 3355 Benefit Consultant Services RFP Opening Date: July 14, 2005 Prepared by: Risk Management RFSP 3355 &l Attachment 3 CITY OF DENTON REQUEST FOR SEALED PROPOSAL FOR BENEFIT CONSULTANT SERVICES TABLE OF CONTENTS Background and General Information Section I Special Instructions Section II Proposal Guidelines Section III Supplemental Questionnaire Section IV Miscellaneous Provisions Section V City of Denton Schedule of Benefits Section VI RFSP 3355 &l Attachment 3 Background & General Information SECTION I Background The City of Denton (the City) is requesting your proposal to provide Benefit Consultant Services for the City's total insurance plan. The effective date will be October 1, 2005 The City currently provides or offers employees the following insurance coverage: a fully insured PPO medical plan, a PPO dental plan, a PPO vision plan, Life/ AD&D insurance, supplemental life insurance, and short-term and long-term disability. The City currently pays the cost of PPO employee only coverage on all eligible employees, basic Life/ AD&D, and long-term disability. The City of Denton is a city of 90,167 (based on 2000 census data and assuming a 5% annual rate of growth) residents and was incorporated in 1866. Denton is located approximately 40 miles north of Dallas and Fort Worth. It sits at the apex of a triangle that encompasses the Dallas-Fort Worth metropolitan area. Although it benefits from the forward thrust and continuous expansion of the largest Consolidated Metropolitan Statistical Area in the state, Denton and its economy stand proudly independent. The City of Denton has a work force of approximately 1120 employees. The City has had an effective safety and risk management program since 1970, an active Wellness Program since 1990, and an insured employee assistance program (EAP) since 1998. Additionally, the City has an Employee Insurance Committee (EIC) representing all departments, providing education and feedback as well as recommendations to City Management and City Council. In general, Denton is a full-service city that provides law enforcement, fire safety, paramedics/rescue, refuse collection, sanitary landfill, electric distribution and transmission, water, wastewater, storm sewer, animal control, parks/recreation, library and airport services. The City has two full-service, private hospitals and several private rest homes. Two major universities-University of North Texas and Texas Woman's University-along with a fully accredited public school system, allow local citizens every educational advantage possible and a rich blend of cultures. The City runs its insurance program on a January 1 plan year. However, the City is in the process of changing to an October 1 plan year to coincide with the City's fiscal year. This transition should be complete October 1, 2006. RFSP 3355 1 &l Attachment 3 General Information 1. All proposals are required to be signed by an authorized representative of the entity submitting the proposal. Proposals received unsigned will not be considered. 2. The proposer shall not sell, assign, transfer or convey any contract resulting from this proposal, in whole or part, without the prior written consent from the City. Such consent shall not relieve the assigned of liability in the event of default by the assignee. 3. Any ambiguity in the proposal as a result of omission, error, lack of clarity or non-compliance by the proposer with specifications, instructions and all conditions shall be construed in the favor of the city. 4. No oral statement of any person shall modify or otherwise change, or affect the terms, conditions or specifications stated in the resulting contract. All change orders to the contract will be made in writing and shall not be effective unless signed by an authorized representative of the City. 5. The City shall have the right to modify this order subject to an adjustment in the price in accordance with the applicable provisions of the purchase order, if any, or pursuant to mutual agreements. No agreement or understanding to modify this order shall be binding on the City unless it is in writing and signed by an authorized representative of the City. 6. The City reserves the right to require additional technical and pricing information and negotiate all elements, which comprise the Vendor's proposal to ensure that the best possible consideration is afforded to all concerned. The City reserves the right to accept all or part of any proposal, to reject any or all proposals, and to re-solicit for proposals. 7. The City reserves the right to schedule interviews, as well as on-site visits, as deemed necessary to make a final selection. 8. All prices quoted by the proposer will remain firm for a minimum of ninety (90) days from the date of the proposal unless otherwise specified by the City or proposer. 9. Although every effort has been made to provide accurate and up-to-date information, companies supplying quotations should contact the Purchasing Agent for any questions that you might have. RFSP 3355 2 &l Special Instructions SECTION II Instructions: These instructions apply to all proposals and become a part of the terms and conditions of any proposal submitted unless a vendor takes specific exception in writing when submitting proposals. The City shall mean the City of Denton, Texas. Format: Proposals should be submitted in an easily understandable format with sections clearly defined. Proposal Returns: One original and three copies of proposals must be sealed in an envelope clearly marked on the outside with RFSP 3355 and addressed to: City of Denton ATTN: Tom Shaw Purchasing Department 901-B Texas Street Denton, Texas 76209 Late Proposals: Proposals must be in the purchasing office prior to the closing date and time, which is 2:00 p.m. on Thursday, July 14,2005. Proposals received after the specified time and date will not be considered. The City is not responsible for unmarked or improperly marked proposals. The City is not responsible for proposals delivered after the scheduled deadline due to the external or internal mail system. The time and date recorded in the Purchasing Office shall be the official time of recei pt. Facsimile Proposals: The City will not accept fax proposals. Acceptance: The right is reserved to accept or reject any or all of the proposals submitted, waive minor technicalities, and accept the offer most advantageous to the City. The City accepts no financial responsibility for any costs incurred by any proposer in the course of responding to these specifications. Authorized Signature: By signing and executing this proposal, the vendor certifies and represents to the City that the vendor has not offered, conferred, or agreed to confer any pecuniary benefit or other thing of value for the receipt of special treatment, advantage, information, recipient's decision, opinion, recommendation, vote, or any other exercise of discretion concerning this proposal. Proposals must show vendor name and address and be manually signed. Failure to do so will disqualify proposal. The person signing the proposal must show title or authority to bind his firm in a contract. Negotiation: The City reserves the right to negotiate once proposals are received. Taxes: The City is exempt from federal excise, state sales, and transportation taxes. Taxes must RFSP 3355 3 &l not be included in the proposal. Tax exemption certificates will be executed by the Purchasing Agent upon request. Proposal Evaluation: The proposals will be evaluated on the factors outlined below which shall be applied to all eligible, responsive proposals in selecting the successful offeror. Award of such a contract may be made without discussion with proposers after responses are received. Proposals should, therefore, be submitted on the most favorable terms. The City reserves the right to void the contract if the successful proposer cannot perform services specified by the proposer's response. Proposal Evaluation Criteria will be grouped into percentage factors as follows: . 40% - Capability of Proposer to provide services outlined in Section III . 20% - Experience (Municipal Preferred and/or 1200 + Employees) . 10% - References from Clients (Municipal Preferred) . 20% - Cost of Services . 10% - Response to Supplemental Questionnaire and Miscellaneous Provisions A2ent of Record: No commissions or other forms of compensation of any type may be included in your pricing. The City will not recognize or name any Agent of Record. Length of Contract: All responses to this RFP shall be for a two-year (2) agreement between the City and the provider. Please provide a two-year (2) initial rate guarantee, with the option to renew for two successive twelve-month agreements. Any changes to the scope of services provided under this contract that may result in changes to the terms, conditions, and fees can be redefined and negotiated after the first year. In that event, any negotiated items must be placed in writing and provided as an amendment to the contract. All proposers must agree to fully warrant and guarantee all information in its response. Termination For Default: The City of Denton reserves the right to enforce the performance of this contract in any manner prescribed by law or deemed to be in the best interest of the City in the event of breach or default of this contract. The City reserves the right to terminate the contract immediately in the event the successful proposer fails to: . provide services specified . otherwise perform in accordance with the accepted proposal Breach of contract or default authorizes the City to award to another proposer and charge the full increase in cost to the defaulting proposer. Confidentiality: All information contained in the proposal is available to the public, if requested. Any information considered confidential by the propsoer should be submitted with the proposal in a separate envelope clearly marked "Confidential." Note: Proposer should provide an explanation for all items considered confidential, giving as much information as possible. RFSP 3355 4 &l Contact Questions about this Request for Proposal and the selection process must be directed in writing to: Carol L. Plant, PHR City of Denton Risk Management 215 E. McKinney Denton, TX 76201 Telephone: (940) 349-8388 Fax: (940) 349-7803 With copies to: Tom D. Shaw, C.P.M. Purchasing Department 901-B Texas Street Denton, TX 76209 Telephone: (940) 349-7100 Fax: (940) 349-7302 All questions received and the corresponding answers will be distributed to all proposers. No information will be given over the vhone. Timetable Release RFSP 3355 Receive and open proposals Interview Finalists, if necessary City Council Presentation Effective Date 06/14/2005 07/14/2005 week of 08/01/2005 09/06/2005 10/01/2005 Deadline for Ouestions The deadline for questions about this proposal will be 5:00 pm, Friday, July 1,2005. The City will not respond to questions after this time and date. Responses to questions will be mailed to all proposers no later than, Thursday, July 7, 2005. Deadline We must receive your responses to this Request for Sealed Proposal by 2:00 p.m. on Thursday, July 14,2005. Proposals received after this time and date will not be considered. RFSP 3355 5 &l Proposal Guidelines for Insurance Consultant Services SECTION III Outline of Expected Services I. Evaluate the current programs and provide Written Analysis within 30 days of receipt of necessary data. A. Assist the City in creating and maintaining a competitive (cost & plan design) benefit program, and in doing so, provide benchmark data from like entities B. Review of Benefit Design C. Review of Benefit Utilization D. Claims analysis including review of large claims E. Review of benefits cost for employees, retirees and the City F. Provide funding analysis, financial underwriting, including renewal analysis and negotiation, budget projections, and quarterly reporting of plan's financial performance G. Evaluate plan design annually, or as required, in light of labor market conditions, cost trends, delivery systems and legal requirements H. Annually analyze, compare and review fully insured vs. self insured plans/ options I. Develop a strategy to transition to a self-funded plan, if required J. Review of current carriers' performance K. Assist in developing long-term strategies and future or proposed benefit plans L. Assist in developing long-term strategies and future for City's Retiree benefits M. Obtain necessary monthly, quarterly and annual reports and data from carriers in a timely manner N. Assist in the monitoring of vendors' quality of service and institute quality standards with penalties for poor performance O. Provide information/ education/ training to City staff related to benefit implementation and administration when requested II. Develop Renewal Strategy A. Conduct annual strategic planning meetings to establish goals, priorities, and identify areas of concern. B. Provide plan design recommendation, with estimated cost implications, for benefit modifications C. Develop a strategy and assist in the transition to an October 1 plan year D. Projected Funding requirements and funding level analysis/ development E. Negotiate with carriers to obtain favorable renewals III. Coordinate Proposal Process A. Collect and organize the information required to obtain competitive bids B. Respond to questions, clarification and requests for additional information of the bid specifications C. Review, evaluate and summarize various benefit options of the competitive proposals D. Review the policies to make sure they are consistent with the bid response E. Meet with proposed carriers regarding contract negotiations, implementation, and other bid requirements IV. RFSP 3355 Assist in the implementation of the Benefit Program 6 &l A. Develop transition plan B. Assist in establishing administrative procedures C. Prepare communication plan and City Benefit Booklet D. Work with carrier/administrators coordinating the enrollment process of all related plans E. Advise and make recommendations regarding on-line open enrollment and electronic communication capabilities V. Administration of Employee Benefits Program A. Keep City advised on new developments involving employee benefit plans B. Act as liaison between City and carriers C. Assist in the timely resolution of claims problems D. Assist in the timely resolution of billing issues E. Assist City Staff in development of multi-media educational programs and presentations, as well as provide support in the preparation of reports and presentations to City Management and Council F. Meet monthly with City Employee Insurance Committee (EIC) regarding current issues G. Appear at City Council Meetings and other necessary meetings as required H. Assist the City with compliance in the areas of COBRA/HIP AA and other benefits related legislation and legal requirements, as well as act as a technical resource to include timely periodic updates on legislative developments, emerging trends, and insurers' status 1. Provide COBRA administration services and/or access to contractual services for COBRA administration and/ or similar programs J. Monitor the prospective markets and changes, which may affect the City of Denton benefit plans. K. Provide research materials on various topics, as requested NOTE: By responding to this RFSP, the Proposer agrees to comply with the above Scope of Services. If you are unable to provide/perform any service, please list that service and provide and explanation. In section C (following), you will have the opportunity to give details of your firm's performance of the Scope of Services. The information submitted shall be divided into tabbed, marked sections and shall include, but not limited to, information for each of the following: A. FIRM OVERVIEW: Proposer is requested to define the overall structure of the Firm to include the following: 1. A descriptive background of Proposer's history 2. State its principal business location and any other service locations, including the primary office servicing the City 3. State its primary line of business 4. State how long it has been providing services as described herein 5. State how many states other than Texas, where services are in use RFSP 3355 7 &l B. PROPOSED PROJECT TEAM, STAFF QUALIFICATIONS, EXPERIENCE, AND CREDENTIALS: Proposer is requested to address services offered by their company to include, but not necessarily limited to, those required services as stated above. 1. Proposer is requested to state the organization's experience, experience of the staff, and technical experience in providing these types of services 2. State level of organizational responsibility of key project staff members 3. Proposer is requested to include certifications held by Proposer's personnel 4. As the City assigns individual projects, successful Proposer shall identify personnel assigned to each specific project requirement 5. Please describe what sets your company apart from other consulting firms C. SCOPE OF SERVICES: As indicated above, please include a detailed explanation of services offered, as they relate to the City's "Outline of Expected Services" provided herein, and your recommended approach to addressing the City's needs. Please provide reasonable estimates of the cost to the City on a monthly and/or annual basis. Please include any services offered that may be above and beyond the Outline of Expected Services indicated by the City. D. REFERENCES: Proposer is requested to provide with the Request for Proposals a list of at least five (5) references where like services or their firm has performed similar projects. Include name of the client, address, telephone number and name of representative. In addition, please include all municipalities or other public entities (and number of employees) served by your firm. E. FEE SCHEDULE: Proposer is requested to provide (1) the cost of services, (2) explain the basis for the above fee and any subsequent annual fees, and (3) identify ad hoc services your company provides and the cost for these services. The City will not recognize or name an Agent of Record. No commissions or other forms of compensation of any type may be included in your pricing. Pricing must be on a flat fee basis, with full disclosure of all fees, including any which may deviate from the flat fee schedule. F. SUPPORTING MATERIALS : Various questions included in this Request for Proposals will be used in making a selection and should be addressed by section and number. Proposer is requested to submit information requested, one (1) original and two (2) copies of descriptive literature sufficient in detail to enable an intelligent comparison of services. G. FINANCIAL STATEMENTS: Proposer is requested to submit recent financial statements with this Request for Proposal. Audited financial statements are not mandatory. Unaudited financial statements will be accepted. If Proposer's firm does, however, have audited financial statements, please include a copy with the response to the RFP. Financial statements must show the name and address of the firm preparing the financial statements and the date thereof. RFSP 3355 Supplemental Questionnaire 8 &l SECTION IV 1. Describe how your firm establishes and monitors performance criteria for all vendors, carriers and contracts. 2. Describe your firm's marketplace leverage in negotiating with carriers in regard to rates, policy terms and plan design. 3. Provide information on litigation pertaining to your role as a benefit consultant over the last three (3) years. 4. Provide information on client turnover for your firm's benefit consulting division over the past three (3) years. 5. Provide information on any National, State or local associations to which your company belongs. 6. Discuss your technological abilities to provide communication in various forms (i.e., web sites, printed materials, enrollment, etc.). 7. Are there any restrictions or pending reviews by Federal or State authorities for non- compliance with Federal or State regulations? If yes, please explain. 8. Has any party brought legal action against the organization during the past three (3) years? If yes, please explain. 9. Have you made any claims against the City in the past three (3) years? If yes, what was the outcome/status? RFSP 3355 Miscellaneous Provisions 9 &l SECTION V 1. Contract Performance: Please confirm that no termination of engagements for insurance consultant services have occurred due to the non-performance, poor performance or other misfeasance in the last 10 years. 2. Conflict ofInterest Statement: Please provide a statement that there is no and will be no conflict of interest in your serving as Benefits Consultant to the City of Denton. 3. Ethics and Interest in a Public Contract: Please confirm that there is no relationship of consanguinity between the principals of your firm and any City Council Member or City official or employee that would result in that member or employee having an interest in a public contract or otherwise violate the states ethics or public contracting laws. 4. EEO Statement: Please provide a statement describing your firm's equal employment opportunity policy. RFSP 3355 10 &l rJ) (!) u 'E (!) Vl ...... ::: cd ...... "3'"0 '3 :g ~~ ::: 0 V (!)U ::: ]~.~ g ~ ;:j ......(!)........ ~~~ I~ If) If) M M ::t:I:: p., Vl ~ ~I 0 'T o ('.l 'D 0 ........ ........ 'D ~I ('.l M ~ .. ~ o .. t"- ~ o o 00\ 00t:::: '" ...... = ... ('.l 0 'D ('.l ........ ('.l ........ 'D 00 ..s::: ~ ~I ~ rJ) (!) a ~I ('.l <3 M ~ 'T ........ 'D ........ 'D 00 00 t"- t"- 00 - ~ ...... M 0 00...... "'1' t"- "'1' ~I 'D M 'T ........ 'D ........ 00 0'\ ~I 0 'T 'D ........ 'D ........ t"- 00 t"- oo 1-1- ..... ..... (!) (!) rJ) i$ o (!) o 'S; ..... (!) p.,~ 00 ~ ~ 'S o .& ~ ~ ]' 0.. ~ .~ ~ u c 2 .~ 3 .3 ~ a ~ ~1: 80.. u 0" " ~~~~~ ~.E~~~~B3.~~ .g~ ~ g + ~~ ~ ~ 8 ~ ~ ~ ~ s ~ :;::.:;: 0 .~ 0 ~ 0 'b 0 iJ'u 0 ::: !j.s 0 -B 2 't. ~ g 1) 't. +"" 't. ~"8 't. 8.. 0.. ~ 't. ~ 0-.0..0 0........-1 1j 0 if.lo~;:jo r:n o..~o +-' 82~~~a~8~~5~~~O~~ '"a ...... o ...... (!) ..s::: ...... (!) > '50 o ...... ,.-.. ~ 'T II ~ o 'T '-"' ...... ..s::: bJ) 'v i$ (!) oS :>-. .D '"0 (!) ...... ~ ...... "3 a rJ) cd i$ (!) ..... o u rJ) ~ ..s::: r-- (!) > o {l ::: .9 ...... u (!) rJ) ..s::: u cd (!) ..... <E o ........ '"0 ::: cd ........ ..... (!) i$ (!) 'S; (!) ~ II ~ ::: (!) (!) Z (!) .D (!) ..... o u rJ) cd ::: ~ C '50 51 rJ) (!) cd ~ i$ u .......s::: (!) u rJ) cd o (!) 0-...... 8<E p., rJ) ..s:::...... u ::: cd '0 ~ 0-. ORDINANCE NO. AN ORDINANCE ACCEPTING SEALED PROPOSALS AND AWARDING A TWO YEAR CONTRACT FOR BENEFIT CONSULTANT SERVICES FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE (RFP 3355-BENEFIT CONSULTANT SERVICES AWARDED TO MCGRIFF, SEIBELS AND WILLIAMS IN THE ANNUAL AMOUNT OF $48,500. WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of Benefit Consultant Services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation 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 items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFSP NUMBER CONTRACTOR AMOUNT 3355 McGriff, Seibels and Williams $48,500 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By acceptance and approval of the above numbered items of the submitted proposals, the City Council hereby authorizes the expenditure offunds therefor in the amount and in accordance with the approved proposals or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. 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. ~ 4-0RD-RFP 3355 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Vance Kemler 349-8044 ACM: Kathy DuBose .. SUBJECT An Ordinance of the City Council of the City of Denton, Texas approving payment for the purchase and installation of Caron compactor parts; and providing an effective date (File 3401- Purchase of Wheels for Landfill Compactor awarded to Caron Compactor Company in the amount of $34,397.84). (The Public Utility Board approved this item by a vote of 4-0). BID INFORMATION In December 2004, the City purchased a used 20011andfill compactor from the City of Brownwood, Texas. This compactor was equipped with wheels manufactured by Caron Compactor Company. The wheel tips on this compactor were worn sufficiently to warrant replacement. The Solid Waste Department requested that a Caron Compactor Company field representative come to our landfill to provide an estimate on the trade in value of a set of Caron wheels on a 1995 compactor, which was scheduled to be sold. The intent was to explore the possibility of using the trade in value for the 1995 compactor wheels as a credit against the cost of furnishing and installing new tips on the 2001 compactor. The trade in of the wheels on the 1995 unit totaled $27,397 including installation. Without the trade, which was rejected, the cost was $34,397.84. On May 2, 2005, the Solid Waste Department authorized Caron Compactor Company to furnish and install the new tips. At the time, Solid Waste Department staff considered Caron Compactor Company to be the sole source for these specialized replacement tips. After installation was complete and invoices received, the Purchasing Office determined that the tips could have been purchased from other heavy equipment dealers that could purchase from Caron and resell to the City, thus making Caron Compactor Company not a sole source provider. PRIOR ACTIONIREVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its September 12, 2005 meeting. RECOMMENDA TION Approve the purchase of replacement tips and authorize Fleet Services to issue a purchase order for payment of invoices. Agenda Information Sheet September 20, 2005 Page 2 PRINCIPAL PLACE OF BUSINESS Caron Compactor Company Escalon, CA ESTIMA TED SCHEDULE OF PROJECT Installation was completed on or about July 15,2005. FISCAL INFORMATION The purchase and installation of the wheel tips will be funded from Motor Pool account 81001.8535. Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Caron Compactor Co. Quote Attachment 2: Caron Invoice 23108 Attachment 3: Caron Invoice 23139 l-AIS-3401 07/29/2005 07:15 2098381464 CARON COfypACTOR CO PAGE 01/Ell . Attachment I 8 QUOTA nON TO: Denton City LandfiU Denton, TX QU01'All0N NUMBER: OSQ0206A.Blt DATE OF QUOTATION! February 4, 200S A'I'TEN'l10N: David Dugser REGARDING: 8260 (gin 7LN07S7) Set ofBMAX PiD~On~ Caps and F"u:ld Service PRONE NUMBEIl (940) 349-8001 FAX NU'MBER: (940) 349-7334 PART No. QUANTITY DESCRIPTION PlUCE 7119-BO 1 Set 8260 Set ofB-MAX Pin-On Caps 5 X 9 Pattern, $ 23.812.00 , Compatible witb Cat Cleanl!3' Bars (Set Consists of 180 BMAX Caps, Including Pms. Springs and Dowels) Surcharge 110ft. Steel Svcbargc S 2.1S7A4" SutJ.Total BMAX Caps 5 16,669.44 LeIS Less Off for Four (4) Whee), from 826<: (sin 87XUl22) -$ 7.000.00 . Total BMAX C.ps S 19,669.44' Freight to Denton, TIC (1rdgllt cbarge IDdudes a 12% Fuel S 1,47&.40' Surdlarge of 51 58.40) FS-EC4-C Labor Remove and Rrpl.a~e BMAX Pin-On Caps - $ 6,250.00 . COMMENTS We at Caron Compactor Co. appnidate JOur business. ~ ~ ESl'IMA'reD SHIP DATE: Parts -In Stock QUOTATION VAUD FOR~ 30 Days SHIPPED FOB: Escalon. CA PA YMENr TERMS: Net. 30 Da)'J OAC ALL PlUCES QUOTED AU SU8JICT TO ANY OR ALL j\WUCc\BLE TABS, TAlUfl'S. 1>\1'1118. OVERSEAS PACKAGING.INSVItANCE ETC. j\ND IS TD rut.L RESPONSIBILITY OF TIIB I'VRCHASER, 1. Tenns are su~t to credit IpPfOval 2.. 1f payment is lIot reeeived within 30 days or aa:ording to te(mS, a late payment charge of 1,S % will be added for each month the aCCoun . nnpaid. Should th!s account be refe(fc:d fur collection, III coUection costs iDcluding reason e I be added to the unpaid balance. 3. Price and rerms OD quotations are no 'ec es er iolreem=ntS unless approved in writing by an .anthorized C~ r 4. Delivery of orden based on. this and. availabUity of material or other causes U 5. Data entry, clerical or computation erron are subject to 6. Conditiom DOt spedfied herein shall be governed. by established trade customs. 7. Terms inecm!li.steot with this quoWioD will not be binding on me seDer. 8. Orders will be prieed in areordant:e with quantities quoted anO teleased for shipment at one time uless cuSlOID=r' is notified of a ~ariatiOD. By: ~M.~ ~ Barbara Humpbrey To place an order I please caD Toll-Free (800) 448-8236 or fax (209) 57&-2833 uc to strike$.accideDtII. fire Title: Assistant Sales Coordinator cc: RB. MS. ST, Distribution. Denton City LQQdfiU LFa618 (file) and QB / . ........ Attachment 2 '~CARQN@ INVOICE INVOICE NO.: 23108 INVOICE DATE: 07/15/2005 COMPACTOR COMPANY, INC. 1204 Ullrey Ave. Escalon, California 95320 (209) 838.2062 (800) 448-8236 _ (209) 838.1404 FAX CARON NO.: 01413 MACHINE SERIAL NO.: 7LN07S7 195150 SOLD TO: SHIP TO: PECOS CREEK 1527 SOUTH MAY HILL ROAD CITY OF DENTON 215 E MCKINNEY JUL 2 8 2005 DENTON, TX 76201 DENTON, TX 76201 GOV 618 TX OTY OTY OTY ORDERED SHIPPED BIO ITEM NUMBER DESCRIPTION UNIT PRICE EXTENDED PRICE ~ 7019-BO ~ o 826G SET OF BMAX pac's 5 x 9 PATTERN COMPATIBLE WITH CAT CLEANER BARS 23,812.00 1 1 SURSTL o 12% STEEL SURCHARGE 2,857.44 ~ .... f \- ,,~(~\) .~: . 23,8~2.00 2,857.44 ~USTOMER IS TAX EXEMPT: #75-6000514 =REIGHT INCLA 12% FUEL SC OF $158.40 .ABOR ON B1572 Please change our billing address to: CARON COMPACTOR CO. 1204 ULLREY AVENUE ESCALON CA 95320 IF PAYMENT IS NOT RECEIVED WITHIN 30 DAYS. A LATE PAYMENT CHARGE OF 1.5% Will BE ADDEO FOR EACH MONTH THE ACCOUNT REMAINS UNPAID. SHOULD THIS ACCOUNT BE REFFERED FOR COLLECTION, ALL COLLECTION COSTS INCLUDING REASON~E ATTDRNEY'S FEES SH}LL BE ADDEO TO THE UNPAID BALANCE. ~() 7~_/____ SUBTOTAL SALES TAX LABOR FRT AND HANDLING INSTALLATION FRT, HNDL, INSTALL TOTAL $26',6'6'9.44 $0.00 $0.00 $1,478.40 $0.00 $0.00 $28,147.84 08/24/05 WED 12:44 FAX 209 838 1404 Caron Dist. ~ A.ttachment 3 INVOICE INVOICE NO.: 23139 INVOICE DATE: 08/02/2005 CARQN@ COMPACTOR COMPANY,INC. 1204 Ullrey Ave. Escalon, California 95320 (209) 838.2062 (800) 448-8236 (209) 838-1404 FAX ~ l4i 002 CARON NO.: 01413 MACHINE SERIAL NO.: 7LN0757 GOV 618 TX 195150 SOLD '1'0: SHIP TO: PECOS CREEK 1527 SOOTH MAY HILL ROAD CITY OF DENTON 215 E MCKINNEY DENTON, TX 76201 DENTON, TX 76201 OTY CTY OlY ORL)[HED SHIPPED B 0 ITFM NUMBER DESCRIP I LUN UNIT PRICE EXTENDED PRICE 1 FS-EC4-C 6,250.00 6,250.00 1 o LABOR EC4-CAPS LINE ITEM NO 1: REMOVE AND REPLACE SDP'S CUSTOMER IS TAX EXEMPT: #75-6000514 PARTS ON A4831 (INV 23108 7/15105) . ,; . ~ , , SUBTOTAL SALES TAX LABOR FRT AND HANDLING JNST ALI..A TION FRT, HNDL, INSTALL TOTAL IF PAYMENT IS NOT RECEIVED WITHIN 30 DAYS. A \.ATE: PAYMENT CHARGE OF 1.5\1, WILL 8E ADDEO ~OR EACH MONTH THE ACCOUNT REMALNS UNPAID. SHOULD THIS ACCOUNT BE RER'ERED FOR COLLECTION, AlL COLLECTION COSTS INCLUDING REASONABLE ATTORNEY'S FEES SHALL ElE ADDEO TO THE. UNPAID ElAlANCE. $6,250.00 $0.00 $0.00 $0.00 $0.00 $0.00 $6,250.00 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPROVING PAYMENT FOR THE PURCHASE AND INSTALLATION OF CARON COMPACTOR PARTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, at the direction of City staff Caron Compactor Company, Inc. ("Caron" or "Contractor") installed certain parts on a City landfill compactor for a total cost for parts and labor of $34,397.84; and WHEREAS, the Caron parts are the only parts compatible with the City's compactor; and WHEREAS, at the time of installation, landfill staffbelieved that Caron was the sole source for the purchase of the Caron parts; and WHEREAS, subsequently it was discovered that compactor dealers also sell the Caron parts, but usually at a higher price; and WHEREAS, because there is a question of whether the parts are available from more than one source, the purchase may not qualify as a sole source purchase; and WHEREAS, notwithstanding the above, the City would be unjustly enriched at the expense of the Contractor if such sum were not paid to the Contractor; and WHEREAS, the City Council finds that the payment of such sum to the Contractor is in the public interest; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The payment of Caron invoice Nos. 23139 and 23108 in the total amount of $34,397.84 for the purchase and installati on of the Caron compactor parts, together wi th any interest and penalties, is hereby authorized and the City Purchasing Agent, or his designee is hereby authorized to pay said sum to the Contractor. 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: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 5-0RD-File 3401 ~~~ 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR SEPTEMBER 12, 2005 9:00 A. M. DRAFT 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 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, Sept 12, 2005 at 9:12 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Charldean Newell, Dick Smith John Baines arrived at approximately 11 :06 a.m. EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Phil Gallivan 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 4. 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. Page 1 of 2 1 2 1) Consider recommending approval authorizing the expenditure of funds for payments by the 3 City of Denton for electrical energy transmission fees to those cities and utilities providing 4 energy transmission services to the City of Denton; and providing an effective date (File 5 3396-Electrical Energy Transmission Fees in the total amount of $134,421). 6 7 2) Consider recommending approval for the purchase and installation of replacement Caron 8 landfill compactor wheel tips for use on the Caterpillar Model 826 compactor at the City's 9 landfill from Caron Compactor Company, Escalon, CA., in the amount of $34,397.84. 10 11 3) Consider recommending approval of an ordinance authorizing the abandonment and release 12 of certain blanket electric utility easements owned by the City, to the extent that they 13 encumber certain real property owned by Holigan Land Development, Ltd. containing 14 approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 15 1330, Denton, Denton County, Texas. 16 17 4) Consider recommending approval of a Professional Services Agreement between the City of 18 Denton and Arthur Surveying Co., Inc for the delivery of routine surveying services on a 19 work order basis for fiscal year 2005-2006, in an amount not to exceed $200,000.00. 20 21 Board Member Dick Smith moved to approve Consent Agenda Items 1-4 with a second 22 from Board Member Bob Bland. The motion was approved by a vote of 4 to O. 23 Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Police ACM: Jon Fortune, Assistant City Manager. SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas amending the provisions of Chapter 6 relating to Animals by amending Sections 6-27 regarding the keeping of livestock; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. BACKGROUND: On July 26, 2005 staff made a presentation to Council during work session regarding proposed changes to Chapter 6 of the Code of Ordinances concerning livestock. Staff recommended the elimination of the existing distance requirements for livestock, other than swine, in order to clear up and consolidate the provisions for keeping and maintaining livestock. Previously, there were separate and somewhat conflicting provisions outlined in Chapter 6 of the Code of Ordinances and in the Development Code. Further, recent court case rulings made the application of the distance requirements significantly different from that which it was originally intended. At Council's direction, staff included specific language to protect an existing property owner, in compliance with these provisions, from being placed in jeopardy by any changes to adjacent property either by a change in ownership or other changes made to the property. During this presentation, staff also recommended the inclusion of a provision requiring owners of livestock to register with the City their use of land for maintaining livestock. This registration was recommended to be free of charge. However, the failure to register with the city would be a violation under the new provision. RECOMMENDA TION Staff recommends approval of the ordinance. PRIOR ACTIONIREVIEW: This ordinance has been reviewed by the Legal Department and approved as to form and content. The City Council reviewed a draft of the ordinance at a work session on July 20, 2005 and directed staff to finalize the ordinance for adoption. FISCAL IMPACT: The adoption of this ordinance will not have any projected or related costs to the City of Denton. Charles Wiley Chief of Police Prepared by: Lt. Scott Fletcher Operations Bureau S:IOur DocumentslOrdinancesl051Chapter 6 Amended Animal Livestock Ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE PROVISIONS OF CHAPTER 6 RELATING TO ANIMALS BY AMENDING SECTIONS 6-27 REGARDING THE KEEPING OF LIVESTOCK; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Chapter 6 of the Code of Ordinances of the City ("Animals") is hereby amended by amending Section 6-27, which shall read as follows: SECTION 6 - ANIMALS ARTICLE I. IN GENERAL Sec. 6-27. Livestock; sanitary conditions and registration requirements. (a) It shall be unlawful for any person to keep or harbor any livestock within the corporate limits of the city if the person does not have a parcel of land at least one acre m sIze. (b) It shall be unlawful for any person to keep or harbor more than two head of livestock within the corporate limits of the city if the person has a parcel of land less than three acres in size. (c) For every parcel of land greater than three acres, a person may have one additional head of livestock for every acre over three acres. (d) In addition to the requirements in subsections (a) through (c), it shall be unlawful for any person to feed or keep any species of swine in any lot, pen, building, stable, or other enclosure in the city, any part of which lot, pen, building, stable or other enclosure is nearer than one-thousand (1,000) feet to any building. If a person is in compliance with this subsection, future changes to adjacent property owned by another will be a defense to prosecution under this ordinance. (e) It shall be unlawful for any person to keep or harbor any livestock within the corporate limits of the city, where there is less than ten thousand (10,000) square feet for each head of cattle or horse and three thousand (3,000) square feet for all other types of livestock. S:IOur DocumentslOrdinancesl051Chapter 6 Amended Animal Livestock Ord.doc (f) It shall be unlawful for any owner or person in control of any livestock to maintain yards, pens, stables, sheds, or other enclosures in which such animals are confined in such a manner as to give off odors offensive to persons of ordinary sensibilities residing in the vicinity, or to breed or attract flies, mosquitoes or other noxious insects or rodents, or in any manner to endanger the public health, safety or welfare, or to create a public nuisance. (g) Manure and droppings shall be removed from pens, stables, yards, coops and other enclosures weekly and handled or disposed of in such a manner as to keep the premises free of any nuisance. (h) Mound storage of droppings of manure between such removals shall be permitted, only under such conditions as to protect against the breeding of flies, rodents, and to prevent the migration of fly larvae (maggots) into the surrounding soil. (i) The feeding of vegetables, meat scraps or garbage to livestock shall be done only in impervious containers or on an impervious platform. G) Watering troughs or tanks shall be provided, which shall be equipped with adequate facilities for draining the overflow so as to prevent the breeding of flies, mosquitoes or other insects. (k) No putrescible material shall be allowed to accumulate on the premises; and all such material used to feed, which is unconsumed, shall be removed and disposed of by burial or other sanitary means. (1) Registration requirements. Persons maintaining livestock within the city limits shall annually register with the City of Denton Animal Services Department. The registration shall include a designation by the owner of the use of the property for livestock, proof of the acreage of the parcel of land, the distance requirements for swine if applicable, and the number and type of livestock kept on the parcel. There shall be no fee for this registration. It shall be unlawful for a person to add additional heads of livestock without amending the registration within thirty days of acquiring the additional livestock SECTION 2. Any person found guilty of violating this ordinance by a court of competent jurisdiction shall be fined a sum not to exceed five hundred dollars ($500) per day. Each day that a provision ofthis ordinance is violated shall constitute a separate offense. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton, Texas, hereby declares that they would have enacted such remaining portions despite any such invalidity. Page 20f3 S:IOur DocumentslOrdinancesl051Chapter 6 Amended Animal Livestock Ord.doc SECTION 4. Save and except as amended hereby, all the proVIsIOns, sections, subsections, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 5. This ordinance providing for a penalty 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, the official newspaper ofthe City of Denton, Texas, within ten (10) days ofthe date of its passage. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY BY: Page 3 of3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: City Manager's Office CM/DCM/ACM: Michael A. Conduff, City Manager SUBJECT: Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Greater Denton Arts Council for the development and marketing of exhibitions at the Fall Festival; providing for the expenditure of funds therefore; and providing for an effective date. BACKGROUND: Mayor Pro Tern McNeill requests his contingency funds be expended to help pay for the marketing and development associated with the Greater Denton Arts Council's Fall Festival. The total amount requested is $100.00. RECOMMENDATION Staff recommends approval of this ordinance ratifying the agreement between the City and the Greater Denton Arts Council for this project. PRIOR ACTIONIREVIEW (Council. Boards. Commission) None FISCAL INFORMATION The contingency fund expenditure request is for $100.00. Betty Williams Director of Management and Public Information Prepared by: ~~i11~fJ.~QVn1 Michelle McCallum Assistant to the City Council s:\Our Documents\Ordinances\05\Denton Arts Council Ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE GREATER DENTON ARTS COUNCIL; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Greater Denton Arts Council has requested funding for the development and marketing of exhibitions at the fall festival (the "Program")and the City of Denton desires to enter into an agreement to provide for the continuance of the Program; and ' WHEREAS, the City Council of the City of Denton hereby finds that the Program and the agreement between the City and the Greater Denton Arts CounciL attached hereto and made a part hereof by reference (the "Agreement") will promote tourism and economic development within the City, serve a mlUlicipal and public purpose, ahd is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Agreement, including the expenditure of funds as provided, in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approvaL PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY, BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 S:\OUT Documents\Contracts\05\Greater Denton Arts Council.doc SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE GREATER DENTON THE ARTS COUNCIL This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and the Greater Denton The Arts Council, a Texas Non-Profit Corporation, hereinafter referred to as "The Arts Council": WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest as it will promote tourism and economic development within the City, among other things; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES The Arts Council shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by The Arts Council for the development and marketing of the following exhibitions at the fall festival, "Joseph Patrick," "Mexican Markets and Gardens," and the "Denton Handweavers Guild". n. OBLIGATIONS OF THE ARTS COUNCIL In consideration of the receipt of funds from City, The Arts Council agrees to the followjng terms and conditions: A. One Hundred Dollars and no/l00 ($100.00) shall be paid to The Arts Council by City to be utilized for the purposes set forth in Article I. B. The Arts Council will establish, operate, and maintain an account system for this program that will allow for a tracing of funds and a review of the financial status of the program. C. The Arts Council will permit authorized officials of City to review its books at any time. D. The Arts Council will reduce to writing all of its rules, regulations, and policies and file a copy with the City along with any amendments, additions, or revisions whenever adopted. E. The Arts Council will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. The Arts Council will appoint a representative who will be available to meet with City officials when requested. G. The Arts Council will submit to City copies of year-end audited financial statements. ID. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within the following time frame: September 17, 2005 through October 26, 2005, unless the contract is sooner terminated under Section VII "Suspension or Termination". N. PAYMENTS A. PAYMENTS TO THE ARTS COUNCIL. City shall pay to The Arts Council the sum specified in Article II after the effective date of this Agreement. B. EXCESS PAYMENT. The Arts Council shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to The Arts Council; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. V. EVALUATION The Arts Council agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. The Arts Council agrees to make available its financial records for review by City at City's discretion. In addition, The Arts Council agrees to provide City the following data and reports, or copies thereof: A. All external or internal audits. The Arts Council shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any major changes in program services. D. To comply with this section, The Arts Council agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status offunds received and the services performed under this Agreement. The Arts' Council's record system shall contain sufficient Page 2 of7 documentation to provide in detail full support and justification for each expenditure. The Arts Council agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. E. Nothing in the above subsections shall be construed to relieve The Arts Council of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term ofthis Agreement, The Arts Council shall deliver to City copies of all notices of meetings of its Board of Directors, setting forth the time and place thereofwherein this program is a part of the subj ect matter of the meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. The Arts Council understands and agrees that City's representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of The Arts Council's governing body shall be available to City within ten (10) working days of approval. VII. TERMINA nON The City may terminate this Agreement for cause if The Arts Council violates any covenants, agreements, or guarantees ofthis Agreement, The Arts Council's insolvency or filing of bankruptcy, dissolution, or receivership, or The Arts Council's violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. Vill. EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. The Arts Council shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. The Arts Council will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. In the event of The Arts Council's non-compliance with the non-discrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and The Arts Council may be barred from further contracts with City. Page 3 of? IX. WARRANTIES The Arts Council represents and warrants that: A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as ofthe date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of The Arts Council on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of The Arts Council. C. No litigation or legal proceedings are presently pending or threatened against The Arts Council. D. None of the provisions herein contravenes or is in conflict with the authority under which The Arts Council is doing business or with the provisions of any existing indenture or agreement of The Arts Council. E. The Arts Council has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. F. None of the assets of The Arts Council are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by The Arts Council to City. Each ofthese representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. B. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. Page 4 of7 C. The Arts Council shall notify City of any changes in personnel or governing board composition. XI. INDEMNIFICATION To the extent authorized by law, The Arts Council agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by The Arts Councilor those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of The Arts Council, its officers, employees, agents, subcontractors, licensees and invitees. Xll. CONFLICT OF INTEREST A. The Arts Council covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. The Arts Council further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. The Arts Council further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself/herself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. XIII. NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand-delivery or facsimile, addressed to The Arts Councilor City, as the case may be, at the following addresses: Page 5 of? CITY GREATER DENTON ARTS COUNCIL C.ha.1~a.I\t~ Margaret C-ftMSCflt, Executive Director Greater Denton Arts Council 207 South Bell Denton, TX 76201 Fax: No. 940.566.1486 City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax: No. 940.349.8591 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XIV. MISCELLANEOUS A. The Arts Council shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision ofthis Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to The Arts Council hereunder, or any other act or failure of City to insist in anyone or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by The Arts Council. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws ofthe State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. Page 6 of7 IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as ofthe day of , 2005. CITY OF DENTON, TEXAS BY: EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYD , CITY ATTORNEY BY: GREATER DENTON ARTS COUNCIL ~~~a~C2.J- MARG T GR.'\l.~iNf a-\AJ...F'" AN T ATTEST: BY: SECRETARY Page 7 of7 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: City Manager's Office CMlDCM/ACM: Michael A. Conduff, City Manager SUBJECT: Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the American Legion to assist in purchasing food, providing monetary assistance to subsidize utility bill and rental payment for citizens and for subsidizing medical costs for senior citizens; providing for the expenditure of funds therefore; and providing for an effective date. BACKGROUND: Council Member Charlye Heggins requests her contingency funds be expended to help pay for agency costs in assisting clients. The total amount requested is $600.00. RECOMMENDATION Staff recommends approval of this ordinance ratifying the agreement between the City and the American Legion. PRIOR ACTIONIREVIEW (Council. Boards. Commission) None FISCAL INFORMATION The contingency fund expenditure request is for $600.00. Respectfully submitted: ~L~~ Betty Williams Director of Management and Public Information Prepared by: %Q~ 1MWJmn Michelle McCallum Assistant to the City Council S:\OUf Documents\Ordinances\05\American Legion Ordillill1ce.doc ,y ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE AMERICAN LEGION TO ASSIST IN PURCHASING FOOD, PROVIDING MONETARY ASSISTANCE TO SUBSIDIZE UTILITY BILL AND RENTAL PAYMENTS FOR CITIZENS AND FOR SUBSIDIZING MEDICAL COSTS FOR SENIOR CITIZENS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTNE DATE. WHEREAS, the City Council of the City of Denton hereby finds that the Program and the agreement between the City and the American Legion. attached hereto and made a part hereof by reference (the "Agreement") serve a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Agreement, including the expenditure of funds as provided in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR I~' ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. S A TORNEY BY: S:\OUf Documents\Contracts\05\American Legion Agreemenldoc SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE AMERICAN LEGION This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and the American Legion, a Texas Non- Profit Corporation, hereinafter referred to as "American Legion": WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES American Legion shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by the American Legion to provide financial assistance for returning veterans and their widows, and to low income persons, which includes help with utility bills, rental assistance, help with prescriptions for senior citizens, scholarship programs, food baskets for the needy during holidays and other related financial assistance. II. OBLIGATIONS OF AMERICAN LEGION In consideration of the receipt of funds from City, American Legion agrees to the following terms and conditions: A. Six Hundred Dollars and no/l 00 ($600.00) shall be paid to American Legion by City to be utilized for the purposes set forth in Article I. B. American Legion will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement. C. American Legion will permit authorized officials of City to review its books at any time. D. Upon request, American Legion will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. American Legion will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. American Legion will appoint a representative who will be available to meet with City officials when requested. G. American Legion will submit to City copies of year-end audited financial statements. m. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within the following time frame: September 6, 2005 through September 6, 2006, unless the contract is sooner terminated under Section VIT "Suspension or Termination". IV. PAYMENTS A. PAYMENTS TO AMERICAN LEGION. City shall pay to American Legion the sum specified in Article IT after the effective date of this Agreement. B. EXCESS PAYMENT. American Legion shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to American Legion; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. V. EVALUATION American Legion agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. American Legion agrees to make available its financial records for review by City at City's discretion. In addition, American Legion agrees to provide City the following data and reports, or copies thereof: A. All external or internal audits. American Legion shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any major changes in program services. D. To comply with this section, American Legion agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and the services performed under this Agreement. American Legion's record system shall contain sufficient Page 2 of7 documentation to provide in detail full support and justification for each expenditure. American Legion agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. E. Nothing in the above subsections shall be construed to relieve American Legion of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term ofthis Agreement, American Legion shall deliver to City copies of all notices of meetings of its Board of Directors, setting forth the time and place thereof wherein this program is a part of the subject matter ofthe meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. American Legion understands and agrees that City's representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of American Legion's governing body shall be available to City within ten (10) working days of approval. VII. TERMINATION The City may terminate this Agreement for cause if American Legion violates any covenants, agreements, or guarantees of this Agreement, the American Legion's insolvency or filing of bankruptcy, dissolution, or receivership, or the American Legion's violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. Vill. EOUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. American Legion shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. American Legion will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. In the event of American Legion's non-compliance with the non-discrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and American Legion may be barred from further contracts with City. Page 3 of7 IX. WARRANTIES American Legion represents and warrants that: A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as ofthe date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of American Legion on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of American Legion. C. No litigation or legal proceedings are presently pending or threatened against American Legion. D. None of the provisions herein contravenes or is in conflict with the authority under which American Legion is doing business or with the provisions of any existing indenture or agreement of American Legion. E. American Legion has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. F. None ofthe assets of American Legion are subj ect to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by American Legion to City. Each ofthese representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. B. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. Page 4 of7 C. American Legion shall notify City of any changes in personnel or governing board composition. XI. INDEMNIFICATION To the extent authorized by law, the American Legion agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the American Legion or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of American Legion, its officers, employees, agents, subcontractors, licensees and invitees. XU. CONFLICT OF INTEREST A. American Legion covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. American Legion further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. American Legion further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himselflherself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. Xli. NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand-delivery or facsimile, addressed to American Legion or City, as the case may be, at the following addresses: Page 5 of7 CITY AMERICAN LEGION City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8591 Harold Williams, Post Commander American Legion 629 Wilson Street Denton, TX 76205 Fax No. 940. Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XN. MISCELLANEOUS A. American Legion shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision ofthis Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to American Legion hereunder, or any other act or failure of City to insist in anyone or more instances upon the terms and conditions ofthis Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by American Legion. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws ofthe State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. Page 6 of? IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the day of , 2005. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ATTEST: BY: SECRETARY Page 7 of7 CITY OF DENTON, TEXAS BY: EULINE BROCK, MAYOR AMERICAN LEGION BY: ,J.J ~ltJ uI~v I. HAROLD WILLIAMS POST COMMANDER AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Legal Department CM/DCM/ACM: Ed Snyder, City Attorney SUBJECT: AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING SETTLEMENT OF AN EMINENT DOMAIN ACTION STYLED CITY OF DENTON, TEXAS V DANA J BEA VERS AKA DANA J SMITH, ET AL, CAUSE NO. ED-2004-485, FILED IN THE PROBATE COURT OF DENTON COUNTY; AUTHORIZING THE CITY MANAGER AND THE CITY'S ATTORNEYS TO ACT ON THE CITY'S BEHALF IN EXECUTING ANY AND ALL DOCUMENTS, AND TO TAKE OTHER ACTIONS NECESSARY TO FINALIZE THE SETTLEMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. BACKGROUND: On February 22, 2005, the City Council passed Ordinance No. 2005-053, authorizing the City to deposit the Special Commissioners' Award ($61,973.00) into the registry of the court. The defendants appealed the Award thereby converting the eminent domain action into a civil trial. Defendants have offered to settle this action for the sum of $71,973.00 which $10,000.00 above the amount ofthe Award. OPTIONS: Agree to the settlement or proceed to litigate the matter as a civil trial. RECOMMENDATION: The Legal Department recommends that the settlement offer be accepted. PRIOR ACTION/REVIEW: Based on Ordinance No. 2005-053 the City deposited the $61,973.00 Special Commissioners' Award into the registry ofthe court on April 5, 2005. FISCAL INFORMATION: $71,973.00. Respectfully submitted, ~ :,... ....... .. .".. .. --. .- .:" .':- -. :. .. . .'. ~~"; . ~ q:<"=~ <- . Ed Snyder City Attorney S:\Our Documents\J'vIiscellaneous\05\agenda information sheet-beavers settlement doc ... . -{ ..:I:r . .-...i.. .. rI' "IIIIIEY'I- = .....,....,... ~ I . . . i;"( . . . y~ . . . .. I L r ~\..:t~: . ~: "'. . . . r . .. . . .. .. ~. ... J . . ~ . II1II . . .11\1 <<Ir ~ 1_4 . . ~ . . .. . I' . . I L .. f . II I' -:=.. . . . .. . ~ . . . . . . . . . - . . .t . . .1 f. · I , . .. . . . . .. I ., . . . . . . . ~.. $:M: . . . AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utility Administration Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider adoption of an ordinance of the City of Denton, Texas approving an Interlocal Agreement by and between the City of Denton, Texas and the Town of Copper Canyon, Texas to provide Gas Well Inspection Services; and provding and effective date. (The Public Utilities Board recommends approval 5-0.) BACKGROUND In April, 2005, the Town of Copper Canyon approved local Ordinance No. 05-203 to enact regulation of natural gas well drilling. The regulatory provisions are similar to the regulations currently enforced within the City of Denton. In June, 2005, Mayor Sue Tejml and Town Administrator Paulette Hartman contacted the City of Denton Staff to request consideration of an interlocal agreement for the Denton Gas Well Inspector to provide inspection services at well sites to be located within the Town of Copper Canyon. The City of Denton Legal Department and Environmental Division reviewed the Copper Canyon regulations and determined that a similar inspection process would be applicable. Consideration was given to the time and resources available to extend inspection services to locations anticipated within Copper Canyon. Due primarily to the fact that original proj ections of inspection activity in Denton were based upon vertical drilling techniques that are largely replaced in the Barnett Shale formation by horizontal drilling that requires fewer drilling sites, Staff determined that sufficient personnel and material resources are available to accommodate the Town of Copper Canyon request for interlocal inspection services. A cost schedule for services has been determined to allow full recovery of out-of-pocket cost as well as general overhead expenses associated with gas well inspection services provided to Copper Canyon. No additional investment or budgeted operating cost will be required by the City of Denton to provide these services; therefore, all revenue collected under a proposed interlocal agreement will apply to funding the current fixed cost of gas well inspection services. An interlocal agreement that stipulates the charge for gas well inspection services and the procedure for conducting and reporting services has been developed by the City of Denton Staff and representatives from Copper Canyon. RECOMMENDA TIONS Staff recommendation is to present the agreement to provide gas well inspection services for the Town of Copper Canyon to the City Council at the September 20, 2005 meeting. PRIOR ACTIONIREVIEW (Council. Boards. Commissions) 1. Notice of pending agreement submitted to Council with weekly Legal Department status report on July 15,2005. 2. PUB approval (5-0) on August 22,2005. FISCAL INFORMATION No additional investment or budgeted operating cost will be required by the City of Denton to provide gas well inspection services for the Town of Copper Canyon; therefore, all revenue collected under a proposed interlocal agreement will apply to funding the current fixed cost of gas well inspection services. EXHIBITS 1. Ordinance 2. Interlocal Cooperation Agreement Between The City of Denton And The Town of Copper Canyon; 3. PUB Minutes Respectfully submitted: r?-~ .. . . .. . . . .. . . . .. ... . ..". ..'" . . .. . . . ... . . .. . . ... .. . .. .. .. ... . .. .. .. . . . .. .... . ::.. ."." .... . . :,..... . Jim Coulter, Director W ater/W astewater Utilities Quentin Hix, Gas Well Inspector S:\Our Documents\Ordinances\05\Interlocal Agrmt-Copper Canyon.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN INTERLOCAL COOPERATION AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE TOWN OF COPPER CANYON, TEXAS TO PROVIDE GAS WELL INSPECTION SERVICES; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves an Interlocal Cooperation Agreement between the City of Denton, Texas and the Town. of Copper Canyon to provide gas well inspection services substantially in accordance with the Interlocal Cooperation Agreement which is attached hereto and incorporated herein by reference (the "Agreement"). The City Manager, or his designee, is authorized to execute the Agreement on behalf of the City. The City Manager, or his designee, is authorized to carry out the City's rights and duties under the Agreement. Any prior actions of the City taken pursuant to the Agreement are hereby ratified. SECTION 2. The City Council finds that the Agreement will benefit the City of Denton and is in the public interest. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: ,By: INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF DENTON AND THE TOWN OF COPPER CANYON THIS AGREEMENT is made and entered into as of the Effective Date as hereinafter defined, by and between the City of Denton, Texas, a home rule municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as " Denton" and the Town of Copper Canyon, Texas, a Texas town generallaw municipality, hereinafter referred to as "Copper Canyon". WHEREAS, Copper Canyon is in need of gas well inspection services; and WHEREAS, Denton and Copper Canyon desire to enter into this agreement under the authority and subject to the provisions of Texas Government Code, Chapter 791, the Interlocal Cooperation Act for the provision of gas well inspection services; and WHEREAS, each party hereto is capable of performing the services provided for herein, and each party paying for the performance of governmental functions or services is making those payments from current revenues available to the paying party and all payments are in an amount that fairly compensates the performing party for the services or functions performed under this agreement; NOW, THEREFORE, it is mutually agreed by the parties hereto as follows: I. The term of this Agreement shall commence as of the Effective Date and shall expire on September 1,2010 unless terminated earlier as provided herein. II. Denton shall provide gas well inspection services as follows: 1. Inspection fee of $1 ,200 per well, unless otherwise agreed to in writing by both parties to this Agreement, would include the following: Two site inspections will be provided with the first inspection following installation of the drilling rig to inspect for compliance with municipal drilling ordinance and the second following completion of the drilling and installation of the operating facilities. Each inspection will include two site visits, the first to inspect and identify any issues of non-compliance to be noted on a Gas W ell Inspection Report and the second to determine if compliance has been achieved in the specified time limit. The site visit following completion of the well will include inspection for proper removal of the rig, remediation of on-site reserve and frac pits, and set-up for operation oftank batteries. EXHIBIT 2 Written Inspection Reports will be provided to Copper Canyon and a copy to the gas well operator for each visit. The only items to be inspected by the Gas Well Inspector will be those agreed upon by both parties and set forth on the Gas Well Inspection Report; 2. Each additional inspection in response to a specific request by the Town Administrator will be performed at a cost of $200, unless otherwise agreed to in writing by both parties to this Agreement, per site visit; 3. Complaints filed with other agencies (i.e. TRC; EP A; TCEQ; etc.) will be the responsibility of Copper Canyon without direct participation by the Gas Well Inspector unless requested as an additional service by Copper Canyon; 4. Enforcement of Copper Canyon gas well regulations will be the sole responsibility of Copper Canyon. The Gas Well Inspector may identify violations and report them to the Town Administrator or designee for enforcement action. The Gas Well Inspector may be required, as an additional service, to testify in court regarding any noted violations of the Copper Canyon gas well regulation ordinance; 5. The Gas Well Inspector may inspect for specific operating safety issues as identified on an Inspection Checklist to be approved by both parties to this agreement as a part of the first inspection (i.e. fire extinguisher installation; no smoking signs; etc.); 6. Site inspection includes collection of water samples from the Reserve Pit for content analysis by a City of Denton Lab. The fee for City of Denton Lab analysis shall be as identified in Exhibit A to this Agreement; additional analysis performed by a non- municipal laboratory may be requested by Copper Canyon for a fee identified in Exhibit A- , 7. Site inspection does NOT include inspection of access route and road damage remediation action; and, 8. Any Denton employee that performs services under this agreement will remain an employee of Denton, but will perform gas well inspection services under the supervision and control of the Copper Canyon Town Administrator. In addition to the fees specified above, for the services of the Denton Gas Well Inspector, Copper Canyon will reimburse Denton the sum of $50.00 per hour. In addition to the gas well inspection services specified in this paragraph, the Town Administrator may request additional services from Denton's Gas Well Inspector. Copper Canyon shall reimburse Denton the sum of $50.00 per hour for any additional services, as defined in this agreement and in addition to the gas well inspection services specified above. III. This Agreement may be terminated in whole or in part, with or without cause, by Denton or Copper Canyon upon forty-five (45) days' written notice to the other via certified mail, return receipt requested, or facsimile at the address or fax numbers set forth below. For Denton: Michael A. Conduff, City Manager City of Denton City Hall 215 E. McKinney Street Denton, Texas 76201 Fax No. 940-349-8596 For Copper Canyon: Paulette Hartman Town Administrator Town of Copper Canyon 400 Woodland Drive Copper Canyon, Texas 75077 Fax No. (940) 241-2727 In the event of termination Copper Canyon shall fully pay Denton for services completed through the effective date of termination. IV. The covenants, conditions and terms hereof are to be construed under the laws of the State of Texas and are performable by all parties in Denton County, Texas. The parties mutually agree that venue for any obligation arising from this Agreement shall lie in Denton County, Texas. V. This writing is intended by the parties as a [mal expression of their agreement and as a complete and exclusive statement of the terms of their agreement. This Agreement can be modified only in writing signed by both of the parties or their duly authorized agents. VI. This Agreement is not intended to extend the liability of the parties beyond that provided by law. Neither Denton nor Copper Canyon waives, nor shall be deemed hereby to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. VII. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. VIII. The undersigned officers and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto and each party hereby certifies to the other that any and all necessary resolutions extending said authority have been duly passed and are now in full force and effect. Signed to be effective the _ day of Date"). , 2005 (the "Effective CITY OF DENTON, TEXAS BY: Michael A. Conduff, City Manager -4- ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: BY: CITY OF COPPER CANYON ATTEST:.. /) ~ P-~-<- BY: - . r--o ., "lfz-xrkJl; HYJ/J}J 'Jbl.,D/JI~ eru.2ei}J:A~ BY: ~Mi::s-;).-:::, - !iJ wAf /fAM/lvl6 fahr '&v.lel/e Htiffmt'-A/ Exhibit A City of Denton Oil and Gas Monitorint! Laboratory Analvsis Price Schedule General Water Quality Analysis Performed by City of Denton Lab: (sample collection included as part of initial inspection fee) Cost to be as shown unless otherwise agreed to in writing by both parties to this Agreement. Analvsis pH (Standard Units) Conductivity (microsiemens) Salinity (as Chloride I ppm) Total Dissolved Solids Cost $15.00 $15.00 $15.00 $15.00 Chloride (ppm) $25.00 TPH (ppm) fiber optic method immunoassay method Combined Cost $30.00 Total $115.00 Note: IfTPH is greater than 15 ppm, site will be re-sampled with approval of Copper Canyon and sample will be sent to independent lab for verification using Gas Chromatograph Detection method. Sampling procedures shall be a minimum of one hour by City of Denton Staff. Independent lab cost to be billed directly to Town of Copper Canyon by lab. 1 2 3 4 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR AUGUST 22, 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 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 22,2005 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, John Baines, Bill Cheek, Phil Gallivan, Charldean Newell, EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Dick Smith George Hopkins ITEMS FOR INDIVIDUL CONSIDERATION: 7) Consider recommending approval of an interlocal agreement to provide gas well inspection services to the Town of Copper Canyon. Quientin Hix, Gas Well Inspector, reported in June, 2005, Mayor Sue Tejml and Town Administrator Paulette Hartman contacted the City of Denton Staff to request consideration of an interlocal agreement for the Denton Gas Well Inspector to provide inspection services at well sites to be located within the Town of Copper Canyon. The City of Denton Legal Department and Environmental Division reviewed the Copper Canyon regulations and determined that a similar inspection process would be applicable. A cost schedule for services has been determined to allow full recovery of out-of-pocket cost as well as general overhead expenses associated with gas well inspection services provided to Copper Canyon. No additional investment or budgeted operating cost will be required by the City of Denton to provide these services; therefore, all revenue collected under a proposed interlocal agreement will apply to funding the current fixed cost of gas well inspection services. Cheek moved to approve with a second from Bland. The motion was approved by a vote of 5 to o. Page 1 of 1 EXHIBIT 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Utility Administration .. ACM: Howard Martin, Utilities 349-8232 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a First Amendment to Professional Services Agreement with Kimley-Horn & Associates, Inc. for additional Professional Engineering Services related to the Final Design of the Southwest Booster Pump Station and Storage Facilities; authorizing the expenditure of funds therefor; and providing an effective date. (The Public Utilities Board recommends approval 5-0.) BACKGROUND The Southwest Booster Pump Station (SWBPS) facilities will provide water service to the upper pressure plane area on the southeast corner of the City's water CCN. The primary customer in the near term will be Robson Ranch, although portions of the Country Lakes Development and the majority of the Hunters Ranch (Peroit property) and portions of the Cole property will also receive water service through this pump station. The preliminary design study for the project was completed by Kimley-Horn and Associates, Inc. (KHA) in the spring of 2002 and a Professional Services Agreement (PSA) was approved by the PUB and City Council on May 6 and May 21, 2002 respectfully (Exhibit 2). The final design effort had reached the 85% level by January of 2003 when representatives from the Robson Ranch Development requested the project to be delayed due to slower than anticipated marketing for their development. Staff indicated a willingness to delay the project until the number of meters installed for the Robson Ranch development achieved the target goals anticipated in the development agreement. Staff continued to monitor the growth in water usage and meters for the development and by the spring of 2005 made efforts to get the proj ect moving forward again. The current schedule will be to finish the final design of the project and release it for bidding in August or September of 2005 with construction completion scheduled for the spring/early summer of 2007. It is projected that the total number of metered connections will be between 950 and 1200 by the time the SWBPS project is completed and the Robson Ranch development is converted from the temporary groundwater based system to the City's surface water system. The proposed amendment to the PSA directly relates to scope changes in the project that were identified during the design phase. These include design for standby electrical power facilities and hydro pneumatic tanks. Both of these items relate to regulatory requirements from the TCEQ and the fact there will be an interim period of operation when the southwestern upper pressure plane will operate without elevated storage in place. Staff had hoped to avoid the construction of these interim improvements by seeking a variance from the TCEQ. This variance request was denied and these facilities will need to be designed and included in the project as a consequence of this decision by the TCEQ. The project delay of approximately two and one half years has also resulted in a request for some additional compensation from KHA that staff has negotiated and reduced to a level they are willing to support. One additional area of scope change relates to the construction phase services portion of the contract. At the time the PSA was negotiated, staff was not certain how the inspection of the project would be staffed and administered. It has since been determined that the best approach will be to use the Construction Projects Manager from the Water Administration Division to provide the day to day inspection and resident representative services for the city. This employee was the city's inspector for the Lake Ray Roberts Water Treatment Plant project and has received significant training from Freese and Nichols on construction management and plant construction inspections and is available to cover this project. Based upon prior experience, staff felt that the PSA with KHA should be expanded to include additional engineering support during the construction phase. The proposed amendment to the PSA includes an additional $25,000 in services to be billed on an hourly basis if needed to cover this additional support from KHA. The revisions to the PSA proposed by staff are discussed in greater detail in the letter from KHA dated July 20, 2005 (Exhibit 3). OPTIONS 1. Approve the amendment to the Professional Services Agreement. 2. Suggest modifications to the amendment to the Professional Services Agreement. RECOMMENDA TION Staff recommends approval of the amendment to the Professional Services Agreement between the City of Denton and Kimley-Horn and Associates, Inc. in the revised amount of $341,000 ($52,000 increase) for additional engineering design and construction phase services for the Southwest Booster Pump Station and Storage Facilities project. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) May 6, 2002 - PUB approved the PSA with Kimley-Horn and Associates, Inc. for Final Design. May 21,2002 - City Council approved the PSA with Kimley-Horn and Associates, Inc. for Final Design. August 8,2005 - PUB approved the $52,000 increase for additional engineering design and construction services. FISCAL INFORMATION The current cost estimate from the engineer for the project is also included in the agenda (Exhibit 4). The current cost estimate for the project has increased from the original cost estimate prepared during the preliminary design report by approximately $600,000 (from 3.1 to 3.7 million dollars). The primary reasons for this are: . Additional cost for installation of emergency stand by power ($350,000). . Additional cost for installation of hydro pneumatic pressure storage tanks ($170,000). . Additional cost due to inflation over a 30-month period ($80,000) The key areas affecting the inflation costs related to structural steel, concrete and fuel costs. The FY 2005-2006 CIP has budgeted $3,105,900 for construction and $60,900 for inspection on the project. Staff will identify available funding to cover the shortfall after bids are received and the bid is awarded. The estimated schedule for bid award is October or November of 2005. This may result in a larger bond sale for the spring of 2006 or a schedule delay for another water CIP proj ect. BID INFORMATION NA EXHIBITS 1. Location Map 2. July 20, 2005 proposal for the PSA amendment from Kimley-Horn and Associates. 3. Original PSA with Kimley-Horn and Associates, Inc. for the design of the Southwest Booster Pump Station and Storage Facilities. 4. Engineer's Final Construction Cost Estimate. 5. Ordinance 6. Agreement Respectfully submitted: ~~ . .. . . .. . . . . . .. ... . ..:......" . . . . .. . . . . .. . .. ... . .. ..... . .. . . . . .. . . .. . .. . .... ... .. . . . . . . ... . . .. Jim Coulter Director of Water Utilities Prepared by Tim Fisher, P.E. Assistant Director of Water Utilities. SOUTHWEST BOOSTER PUMP LOCATION ROBSON RANCH Proposed 24" Waterline Robson Ranch Road \ ~.q... , .~..... . . ';;',. - .', ,- . .' -.. - '" .... . ...~.1Ac. ttdy18, ~ ~. i_Fisher, PJE, ~~orofW_U~ ~~lD~_n . .,-A T~ $tfeet ~13. TX'~ ite:~:tt$mthw~P_~_~~l'- IWANQ.061~S Suite 1025 1IO~ CIIejly Street, Unil11 P!lftWOitll, TW$. 76402'61103 ~''I'..: , . ~ J ~..: ....~..... 'Ii!ll'.ec~.p. _. ...1Q.:W.........q...Ul.:.........~..........................~......................... ......I1}f....:...~....:........... .................~.. .......~....f.......:Qtllj. .......... ....~.... ........ '. ~fertheSo~~~.~ ~-W"P0v~a~ r..~-theb~.~..T.i~. .. =~~=J~~=:-4====O ~ no1Cl!Q~ ~,.......;~~l!loo>2>O ~~.,,~j;mc!R~eo~....<.... .... q'.:"(ilOO8~~ , .=~ft0t' '.. '~~':~";:'~:-;'t._. ~~~tee~i~M;th ~_~:ifil63~t>>tke ~W;;tis a ~~~$iS,fJO():1 ~l#Q#Ct-erJ~co~n~JfN' ~_~~~.nis'$3tJ1}.0fJ8. ~.2.~~.......~.T_.....!""".If;~........i......!'..-..". ..4:~~..... ..........- .... ..aDims:li0rupto2..lOC0~_.~.... ..'1 ..~~ ~_.-..[(~..~~.~.' m..t1~Q.'~ "_C_Q{~tQhEw~~ '~$'d;~~ ==:~=-~:.._...........,.........,~=.=~T .~ .~0ftM~~.-..~twG~ll~ ~~~are~~_tQi.o........... ........... '.. $.,..~,~ ...awe..~~in~~~_:~:i,. ~"-'S0the ....~.~.~.i$.~~,.,..~08~~. _ijl10ta.~~.~_~_;...alows .......-_..i}1,e.at........ .~._~te18~.~~tke ~~~~. ..' .of._~..~tIii~.e ~.~~.c~_~~...~..,.~..~ . - , , .. , . ~ '. ..',.. .'~'~~~''':';r:~:.:.~,~?:~~~;'~:~!;'~:~: '.~:?2. .1 v ,- < 1 . ,<" .,., '~,.,. ,I :.'<;"f.{"~;,:i::;~t~i_~_;;L~~.:~~~~;:~nj~~1~~~~.,~:.,:i.:~.~~~.;.:~~..:.~f~f0t.?.ft~1*'::,'~7t-f-~?~~~~i;.~;~.,t11~~,::~~!~t~~~:~>'.~.~F-?(:::~'~~~~:::~~:}.;\?':~~:" \:~:,.'~~.:~::.>:::;:':. . j .:.. ""';~~:~1~0'0{'~i}'~:r?V~~':~f . ~ :1' . $ 1! ~ i ~ ~ .~ * .~ ~ At=~ol:lIili !M~~~l*"""1lLe .e1::::cq(_N,:;::::l<"himp ~...i_ ; Mt, ri.il"FIs.,;P'~.;_20; ~5,"2 $.- .~...............~yti~.....i.....................>IJi;....i.:,:.~_i&_:'~."',.,'~ol ... ... ,.... .. .~. ~...~.._~t8bE'~lFupt(f)(il W$~j;-' '. Mt.n~,Fi~f,l>.E., l~ ~,_.~P "j .t~ ! .~"'~' ...... '..- ........"'.. .l.........' .,..... ;.'.."'............ ..-L-. .......Ii.. ...~m...... ~~!.~ - ---'~ ~~. , ",": ~,~ - ,', - -" , , ", ., ":. :", ~" ,. I' ..~...... .~. 0',.: -C"'.-" ",'<,"",' ~_b~~ ~ 4> l"'~ . ';ai'~~~ $' ..~- $~$I) 5: 2~,_ ., , ~~~~.~le :' ~~.'S~. $..~~- .~.~SMf.~ . ~~.^"'-' .'.',;: '>"(:t).~ ~ ~~e;~~. .., ..... ..~,~~.l~d.'i .,~:",_c"/~:~.'~ .'" ".,'c $jj~* .~ $~000 ....~~..~-_..~ L-.u p~.~' , ~,...'~"~"""""'" .r..,";.,.' .:."~"...'.......,"'..m.:'~. !'.~" . ,. .~.).;,.u. ' ~:...".".''''''''..., ........',......~'. I ,"'_, ..' . . -, ,'. ..... . ,_. '. .. ' .' . j.' , '. '" - ...' -; '.' :. , ',-~: ~ ' , . , . . ~A,'~'Pji. I ~! .... .....".. . . . ~.: . /' . _". "J ~W5\L~doc ":<. " o o ORDINANCE NO. ~ ()t!tl, -IS7 AN ORDll\TANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING TIIE CIlY ~A:GQ,.,TO :eXBctJTB A PROFESSIONAL SERVICES AGREEMENT WITH IOlMLEY-HOJ;N &. ASSOCIATES, INC. .FOR PROFESSIONAL ENGINEERING SERV1CESIlELATED TO THE FINAL DESIGN OF THE SOU'fHWlEST BOOSTER Pl:IMP ST:A.noN AND STOR,AGE FACILITIES; AUTHquzmG THE ~BNi:)I~ OF FUNDS THEREFOR; AND PR.OVIDING AN EFF1fCTIVE DATE. . ~AS, the City Council deems that it is ill the public inferest to engage ~YM~~ As,Sooiates, Inc. 3: _ C~rporation . ("K-H"), to projle prof~sional ~.~e& .relate4 to the final design of the Southwest Booster Pump Station and S~F~~and ~AS, the City staff has reported to the City Council that there is a. ..$Jid1stant:i3:l~fur tb,e. above-referenced professional engineering. services, and that I~City~~ adequately perform the specialized services and tasks with its OWIl . J~l;..~ ~s,cna,ter 2254 of the Texas Government Code, known as the ~~S$Vices Procurement Act,"genem1lyprovides that a City may not select a ..~... .9f..~. ~ces on the. basis of competitive bids, but must select the .' ~QIl;"~ ofd~(}11Strated cotl:lfeteI1ce, knowledge, and qualUications, and fur alml\$n_~lejtice; NOW 'THEREFORE, 'I'HB C~OF l'HE CITYOjF DENTON HEREBY ORDAINS: ... .. . .~.l,:n.t the City Manager is hereby authorized to. execute a '~6mtJ,~ A~ with Kimley-Hom & Associates, Inc., a CorponWOIl, f'Or ~~. ~~~. serviQe& relating to the final..design of the Southwest Booster ~.i~'",,~~ Fa;ciJ5,~, in a ll.lRlp-sum f~ of $289,000; in SIlb$tantially the '~.~~'~:(:)~ISmric.es Agreement attached h<<eto and incorporated herewith by ~. .,~~~; .111atfb.e.awarcl of this Agreement by the City is on the basis of the ~~~; mowlelige, and qualifications of K-H and the demonstrated ~ ofK.-H~fl~.Fllll the services needed by the City for a fair and reasonable price. . ....~~,l: '!'hat the expenditure. of funds as provided in the attached ~O$l~~U Agreement is hereby authorized. . . . 11'<;.,4: ~ this o:rdinance shall become effective immediately upon its ~~~'Val. . ot PAS$!!) ~ Al'PltOVED this the; 1--- day of I1l. cur- . 2002. 1""\ '. " ......;..,..~Vl~l\.6t.J~> ",,'>~':.<..:^{t. '.. -.:::=~~.T..""'" . :ANt>GR.OOND STOUGETANl{ ..) ii~~~:::fx..~.J~ ."e~Street.~. Texas i.o2O'1'~' "Ef.....;tfj.. ...... ._.;;.N~(::....~n;>wi*#&~at! .,....:',~ ~...,' "<i1_<>.", 1'""1' I'l'" ~.&_.' 1',i'v\lt.TCT.Ft "PC'A iil"""),' .:oL~ '." ........ "'~."<T" ;~..,l'; . ...1''''4_''''''' 'Wii4 \~__Il"!J.. . LV.l:lJi;fV""'I;('U"I'1 .;,.~.:. ,..'. '""",~,.."6 k;....~~. "A~t.. ...~-:.......ja,~+;; . ~_A .Nt^'-'- . , , "'9"~..,. . '" "IiUl'....~uLiCU..'..,p.."'__...~WS 4JW. Q~lS. ,~.f~~t:::::=~-::r~I:t" AB~~I BMPLOVMENTOF CONSULTANT . . . . . . . . . . . ...'''~ ~ts with. CONSUL!l.NTt ~. ~~~tQrtI~ ~...~t& petfor.m ~servlCesbereinm~.tle~t ...P:'::.o~=e~~~~=~= .~QllWia tke f011owing~ projeet(tJIe ItPmjeoclf): ' ...~..............l>~..~'-,o~-::r=:~~~::::t,'~ .../.......:~~""~. . . " _..,<-.~"~~. . 1 . .. .! AR~,n j SCOPBO:FSStWCES I . . I ~'UiIo~TAMr sMIJ per6IJnt tllefbllowmg Basic Servi... ill a p~ ~~~~. ~8$ ~ fimh _!he $<ope ofWotk_Poe~- ..J:!=~~===~ ~~_ ~g three(3)seotioDS: i . f. 1. .....~,I! ~". .... .'..'..c..:<>J.."..II.8:"....',YJeE..... cJ', - .,. '_ ,;,; . -;".: :;.; .;". ,. -':: - '." :,_..,,~.... -' :.: . . . '. . .. .:... . - ,.,', . - . .. .. ,. m~_~r!~~T '~"~'J?~l"1 . , i i ":~'" i$ .'~'..'.:~'....'*r..~~'. ifa.y\~r.y ."$P~Qf~'r~~ in'~Pl:_~ "." ~.........(.1I'~~~.Awj~~rer~' . t ~.~. .~1'AKI' 1Il ~. wi& tile .. .t ,~atfm_00$tj~tm~"" '.. .... " .. ~t fs~......,~~_~~~~~!fOr :~.=E.,~........~:t.:.; . ~.~. ~_eJ ~...~.._tl)e.'.Wf:).'.'" ...an ,..ar.... '~.....:". ,:'.' .. ~i1aIR-;~-<:Im ....--_........_.,with.1he~. . "C: :_. .,__:._",_,..,~~~1~ ~~&.'".'_' ~.jIl~""~l' ; ~ .. o .' ... ....: . -. . . - . .'. , , . !.J .... ....... ..,~~QJJnjt$~:~.~:;Pnljeetitt,~... af"~ ar.e~ _as set Co. ill theItS~Qf' . . " ;;.~2~-=t:~.1.~.~ "~" .,a.tl..1ti ho.ly Billmc Rates... othefW1Je~.FOI","" m -~:=:~~~~ ~'iS. '.~ hereWith ltyreference,. a .total. fee, mclwting reilDb~. for ~~"~i'~ and for its ..~bcontractor expense,..a lump-sum 8lDO~ ..of $~(~ of$2'55,iOO for the Basjc Services refen-ed to herem.; and $3~,200 f".;"W~ees referred wherein). : 2. P_.l~tGthe CONSULTJ\Nl".wiU ~ lDadem()mldyin .~. 'wdI1.the S~~~.I the acttudCQmpleaonof the -Ba$c Services, remem! to land a)~.',~.,_ i~ .thro\tgh. its City M~er [or its A&sisUlBt.CitY. ~set ibr Utifiti.~. , ..,~eJt,.~d$" .110'. eimumstmwes sa;m.. any monthIystatem_ .fPr .~s ex~,.v.l)ftkeservicespcrfetmedat the u,nea statem.isrendeted. ~. No....e~i:n this .Article $ball. n:quire.theOWNERto pay for any work w~ 'is '.~~~Iy determined by the City....~ [or itsAssistam~ity .M~. fPr'~], or which is not submiiloo by CONSULTANT to the owNEtt in ~ wi"r~ temts pi this Agreement. The OWNmt shall not be requin# to m.'~:JI;__,to the CONSULTANt at any time when the CONSULTANT is in defmdt'umlerthW .,eemwm:t. ' 4. It.is~lY ~od and. apeed that the CONSULTANT shall not be authOl1ized 'to ~ #~m'k. plll'Suant to this Agremnent which would .require .additit-l . P~.'by. the :OWNBJ.' for any charge~ expense or reimbursement. above the not-to- ex~~:.smted hemmahove, without fitst having obtained the prior wrltten au~ .~..e OWNER. CONSULTANT shalt not proceed to perfutmiany ~~$tQ .~..'~<.provided. fo~ uDder. Articlem. "Additional Services" without ltirst 0~'~WHtten~on frt)D1 the OWNER. - '. . , C.,AUmn~SE.rreES: . For. adtlitiomd ~amhorized in writing by the OWNElt in ~clem..~, CONSULTANT shall he 'paid basod on a to..be-~~n ~eof~~. . Paym€'llts for additional services shall he due and payableqpon 8~'by the. . CONSUL T ANT, and shall be in accordance with Artiele V .D. I j 'I , "I I ,I 'J I ,1 ; j. i I l I~.~ __"'!-_~_f""~"~ ~'f I I I I I I ! ( , ana.,' ~.> ...,.. .~1110_ .'1,.' .t": IIQ." _:;l_f8- <l>.""" '. nmQ_ "':~-f~ ~ '$1.;-'-: , - .' . ..: ~ , ~, "-; , ~~w.~ lJJ~~ i l i , LlllJl illlllliH U IlL....,.. _ll~~l_.~~B~~~.~ 1 Z 3 4 5 6' 7' 8 tl 1(1 ~,_. ~_. ..... $fP&.OOO 1431,000 $.5t,000 . .15;000 -'060 .. I~,OOO ., $tsi,QOQ . .~~. L~itlJ P~.T_ i':- NOc .'. . .~~.~ Fm\illl;~ ~:_"--...........,.~~ ."-';._~~ ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY-HORN & ASSOCIATES, INC. FOR ADDITIONAL PROFESSIONAL ENGINEERING SERVICES RELATED TO THE FINAL DESIGN OF THE SOUTHWEST BOOSTER PUMP STATION AND STORAGE FACILITIES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems that it is in the public interest to continue to engage Kimley-Horn & Associates, Inc. a Corporation ("K-H"), to provide further professional engineering services related to the final design of the Southwest Booster Pump Station and Storage Facilities; and WHEREAS, the City Council passed and approved an Ordinance on the 21 st day of May, 2002, being Ordinance No. 2002-157, which authorized that a Professional Services Agreement between the parties hereto be entered into. On the 21st day of May 2002, the City of Denton, Texas and Kimley-Horn and Associates, Inc. entered into a "Professional Services Agreement For The design, Bidding and Construction Contract Notification Associated With The Proposed Denton Southwest Pump Station and Ground Storage Tank;" and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the additional above-referenced professional engineering services, and that limited City staff cannot adequately perform the specialized 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; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the City Manager is hereby authorized by the City Council to execute a First Amendment to Professional Services Agreement with Kimley-Horn and Associates, Inc., a Corporation, for further professional engineering services relating to the final design of the Southwest Booster Pump Station and Storage Facilities, for an additional lump-sum fee of $52,000; in substantially the form of the First Amendment to Professional Services Agreement attached hereto and incorporated herewith by reference. EXHIBIT 5 1 SECTION 2: That the award of this Agreement by the City is on the basis of the continued demonstrated competence, knowledge, and qualifications of K-H and the demonstrated ability of K-H to perform the services needed by the City for a fair and reasonable price. SECTION 3: That the expenditure of funds as provided in the attached First Amendment to 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: EDWIN M. SNYDER, CITY ATTORNEY By: S:IOur DocumentslOrdinanceslOSIKimley-Horn & Associates-Final Design-SW Booster-PSA 200S.doc 2 THE STATE OF TEXAS ~ ~ COUNTY OF DENTON ~ FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT to that certain "Professional Services Agreement For The Design, Bidding and Construction Contract Notification Associated With The Proposed Denton Southwest Pump Station and Ground Storage Tank" in the original not- to-exceed amount of $289,000 (hereafter the "Agreement"), executed on May 21,2002; and approved by Ordinance No. 2002-157 enacted by the Council on said date, was heretofore entered into by and between the City of Denton, Texas, a Texas Municipal Corporation with its offices at 215 East McKinney Street, Denton, Texas 76201 (hereafter referred to as "CITY''); and the firm ofKimley-Hom and Associates, Inc., with its offices at 801 Cherry Street, Unit 11, Suite 1025, Fort Worth, Texas 76102, a North Carolina Corporation (hereafter referred to as ''K-H''); acting herein by and through their respective duly authorized signatories; and WHEREAS, the work and projects contemplated by the Agreement have been partially completed, but certain portions of projects remain pending or have changed by the delay of the last three years; neither due to the fault of the CITY nor K-H; and additional monetary authority of not to exceed $52,000 (a total amount of $341,000, including the $289,000 amount of the Agreement) is requested by the CITY and K-H at this time; both the CITY and K-H have a mutual desire to enter into the terms of this "First Amendment to Professional Services Agreement" (hereafter the "First Amendment'') in order to complete all of the services described and provided for in said Agreement and in the First Amendment; and NOW THEREFORE, the City of Denton, Texas and the firm of Kimley-Hom and Associates, Inc. (hereafter collectively referred to as the "Parties"), in consideration of their mutual promises and covenants, as well as for other good and valuable considerations, do hereby AGREE to the following First Amendment, which amends the terms and conditions of the said Agreement, to wit: I. That the provisions of the new Article II.B. shall be inserted immediately following the enumeration of the three (3) sections of the Scope of Work and Fee Proposal labeled Article IT.A. in the Agreement of May 21, 2002, to wit: "B. To perform those professional services as are set forth in the First Amended Scope of Work which is set out in that certain three (3) page letter from Glenn A. Gary, P.E. of Kimley-Hom and Associates, Inc. to Tim Fisher, P.E., Assistant Director of Water Utilities of the City of Denton, Texas, dated July 20, 2005; 1 EXHIBIT 6 which letter is hereby incorporated by reference. (4) sections: 1. 2. 3. 4. This letter is composed of four Item 1 - Electrical Generator Item 2 - Hydropneumatic Tank Item 3 - Delay of Project Item 4 - Construction Phase Services" II. That the provisions of old Article II.R. shall instead be labeled as Article II.C. Article II.C. shall instead read: "C. If there is any conflict, or if any conflict arises between the terms of this First Amendment and the Exhibits attached to the Agreement and the First Amendment, the terms and conditions of this First Amendment shall control over the terms and conditions of the Exhibits:' ill. That the provisions of Article V.B.1., shall be deleted and the following language is substituted for the same. The provision shall instead read: "1. CONSULTANT shall perform its work on this Project in accordance with the provisions of those tasks which are described and as set forth in the "Scope of Services" of Exhibits "A" and "B" attached hereto and incorporated herewith by reference. CONSULTANT shall bill from time sheets, on a once-monthly basis, in minimum ~ hour or smaller time increments, at.the hourly billing rate, or as otherwise provided in Article V. For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay, at an hourly rate as determined by Exhibit "C" entitled "Compensation Effective August 1,2005" which is incorporated herewith by reference, including reimbursement for direct non-labor expenses and for its subcontractor expense. CONSULTANT and OWNER agree that the fee for this First Amendment is not to exceed $52,000. That amount consists of (1) a lump sum fee of $15,000 associated with adding the Electrical Generator, as contained in Item 1 of Exhibit "B" hereto; (2) a lump sum fee of $8,500 associated with the addition of two 15,000 gallon pressure tanks ("Hydropneumatic Tank") as contained in Item 2 of Exhibit "B" hereto; (3) a lump-sum fee of $3,500 associated with the project delay of several years ("Delay of Project") as contained in Item 3 of Exhibit "B" hereto; and (4) a not-to-exceed hourly fee in accordance with Exhibit "C" attached hereto regarding additional construction phase services regarding Item 4 of Exhibit "B" hereto, in an amount not-to-exceed $25,000. The original Agreement executed by CONSULTANT and OWNER on the 21st day of May, 2002, provided for professional fees in the lump sum amount of $289,000. This First Amendment authorizes the expenditure afnot-to-exceed an 2 additional $52,000 in professional fees. Therefore, this First Amendment authorizes the total expenditure by OWNER of not- to-exceed $341,000." IV. That the following language shall be added to Article XXII.A of the Agreement: "Exhibit "B" - First Amendment - Scope of Services - as contained in the letter described hereinabove as Article II.B. "Exhibit :C: - Compensation - attached hereto as Exhibit "c" v. The Parties hereto agree, that except as specifically provided for by this First Amendment, that all of the terms, covenants, conditions, agreements, rights, responsibilities, and obligations of the Parties, set forth in both the Agreement and the First Amendment, shall remain in full force and effect. IN WITNESS WHEREOF, the City of Denton, Texas and the firm of Kimley- Horn and Associates, Inc. have each executed this First Amendment to Professional Services Agreement, in (4) original counterparts, by and through their respective duly authorized representatives and officers on this the _ day of , 2005. "CITY' CITY OF DENTON, TEXAS A Texas Municipal Corporation By: MICHAEL A. CONDUFF, City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: 3 M. EDWIN 11. SNYDER, CITY ATTORNEY By-I iWA ~~ HK - H" KIMLEY-HORN AND ASSOCIATES, INC. A North Carolina Corporation By: /Z~~ GLENN A. GARY, Vice President ATTEST: By: S:\Our Documents\Contracts\05\Kimley-Hom First 4 Exhibit C Kimley-Horn and Associates, Inc. Rates Schedule (Hourly Rate) Senior Professional IT Senior Professional Professional Designer Technical Support Clerical! Administrative Support $150 - $190 $110 - $155 $60 - $110 $95 - $105 $45 - $90 $55 - $70 Effective JanU(lry 1, 2005 C:\Docurnenls and Settings\glenn.gary\My Docurnenls\FfW05 _Ma>ter.doc89 ~-n Kimley-Hom ......: _ r__~ and Associates, Inc. July 20, 2005 Mr. Tim Fisher, P.E. Assistant Director of Water Utilities City of Denton 901-A Texas Street Denton, TX 76205 Re: Denton Southwest Pump Station and Ground Storage Tank KHA No. 061024005 Dear Tim: The following are items not included in the Scope of Services of our current contract for the Southwest Pump Station project. We have provided a description of each item and the fee increase associated with each item. Item 1 - Electrical Generator - The current plan for the service area proposed to be served by the Southwest Pump Station is to delay the construction of elevated storage. The TCEQ requires emergency power for systems with greater than 250 connections and do not meet the elevated storage requirement of 100 gallon per connection. Emergency backup generation is listed in the contract as an additional service but was not included in the total agreement price of $289,000. The additional fee associated with adding this item as stated in the contract is a lump sum of $15,000. The projected additional construction cost for electrical generation is $300,000. Item 2 - Hydropneumatic Tank - If elevated storage is not constructed then the TCEQ allows for up to 2,500 connections to be served by a 30,000 gallon pressure tank. Kimley-Horn submitted a variance request to the TCEQ on behalf of the City of Denton to have variable speed pumps to control pressure rather than a pressure tanlc This request was denied by the TCEQ and a pressure tank will have to be constructed for pressure maintenance unless elevated storage is constructed. Because of the operating pressure at this station two (2) 15,000 gallon pressure tanks are anticipated to be constructed. As you know, pressure tanks are typically used in rural areas where fire demand is not considered, so the demand from the tank is fairly consistent. In this situation even though a pressure tank is not a reliable method to provide fire protection, the design allows the system to operate at fire demands which can be 5 to 10 times higher than the normal anticipated demand. The control of a pressure tank. in this hydraulic condition can become complex to meet the wide range of anticipated demand . TEL 817 3356511 FAX 817 3355070 . Suite 1025 801 Cherry Street, Unit11 Fort Worth, Texas 76102-6803 ~=~ :=~t~lnc. Mr. Tim Fisher, P.E., July 20, 2005, Page 2 conditions. A good portion of the design deals with pump controls that allow the pressure tank to operate through a wide range of demand conditions. The projected fee for the addition of two 15,000 gallon pressure tanks is a lump sum $8,500. The projected additional construction costfor the two pressure tanks is approximately $135,000. Item -3 Delay of Project - The project has been delayed for nearly two years now. We have to change a few contracts with some of our sub consultants to account for the delay of the project. Some of it is related to starting up the project again, some of it is things like having the surveyor verifY property information and comers. The additional fee to cover subs is approximately $3,500. I would like to request that we shift the cost of the reserved funds for geotech to cover Kimley-Hom's cost to stop and start the contract. The geotech information we received early in the project was sufficient to cover the majority of our needs. We have only spent $600 of the budgeted $6,600 to have the geotech sub consultant revise his report. The total additional cost we are requesting for project delay is a lump sum of $3,500. Item 4 - Construction Phase Services - Our current Scope of Services includes only shop drawing review and monthly site visits. You have indicated that there may be a need for more detailed correspondence between your inspector and Kimley-Hom during construction. It is very difficult to project the actual additional fee for this; it is dependant upon contractors, vendors, developer's contractors, and your staff. We propose that the construction phase service of the contract be increased approximately $25,000 to cover these additional services. This would allow an additional 2 to 5 hours per week of services as needed from your staff. This time is not designated to cover errors and omissions by Kimley- Horn, but to allow the staff the flexibility for additional services as needed through the construction period. Additional construction phase services are proposed to be hourly up to a budgeted amount of $25, 000 1II"'1-1n11 Kimley-Hom ......,J _ ~~ and Associates, Inc. Mr. Tim Fisher, P.E., July 20,2005, Page 3 Summary Additional Services - Lump Sum Electrical Generator Hydro Pneumatic Tank Delay Sub consultant Cost Subtotal $ 15,000 $ 8,500 $ 3,500 $ 27,000 Additional Services - Reimbursable Construction Phase Services $ 25,000 Total additional services $ 52,000 Current Contract Amount Proposed Contract Amount $289,000 $34 I ,000 Please review this information and let me know your thoughts, then we can work through how you would like to proceed. Sincerely, KIMLEY -HORN AND ASSOCIATES, INC. /Z--- t:/' ~ Glenn A. Gary, P.E. . GAG:jlp P:\061024.005\LTR"""-ndment2.doc AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Utilities Howard Martin, Utilities 349-8232 .. ACM: SUBJECT Consider approval of an ordinance authorizing the abandonment and release of certain blanket electric utility easements owned by the City, to the extent that they encumber certain real property owned by Holigan Land Development, Ltd. containing approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 1330, Denton, Denton County, Texas; and providing an effective date. (The Public Utilities Board recommends approval 4-0.) BACKGROUND Holigan Land Development, Ltd., is in the process of developing a tract of land consisting of approximately 160.023 acres in the southeast area of Denton designated as the Villages of Carmel. This item is to consider Holigan's request to abandon certain blanket easements on the property. All the background information was presented during the closed session. OPTIONS 1. Approve the abandonment 2. Propose an alternative alignment 3. Do not approve the abandonment and accept the risk of not being able to obtain the needed easement to construct the required transmission line from Spencer to Pockrus RECOMMENDA TION DME recommends approval of the abandonment. ESTIMA TED PROJECT SCHEDULE The easement abandonment will be completed as soon as possible after Council approval. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) The public Utilities Board unanimously recommended approval on September 12, 2005. FISCAL INFORMATION Not Applicable BID INFORMATION Not applicable EXHIBITS 1. Ordinance 2. PUB Minutes Respectfully submitted, ~ll:lII: .................................................................. Sharon Mays Director of Electric Utilities Electric Administration Prepared by: ~~ :1:1: Chuck Sears Engineering Administrator Denton Municipal Electric S:\Our Documents\Ordinances\05\Holigan-Electric Easement Abandonment.DOC ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE ABANDON1vfENT AND RELEASE OF CERTAIN BLANKET ELECTRIC UTILITY EASEMENTS OWNED BY THE CITY THAT WERE PREVIOUSLY ASSIGNED TO THE CITY FROM BRAZOS ELECTRIC POWER COOPERATNE, TO THE EXTENT THEY ENCUMBER CERTAIN REAL PROPERTY OWNED BY HaUGAN LAND DEVELOPMENT, LTD. CONTAINING APPROXIMATELY 160.023 ACRES AND BEING LOCATED IN THE GIDEON WALKER SURVEY ABSTRACT NO. 1330. DENTON COUNTY, TEXAS, AND PROVIDING AN EFFECTNE DATE THEREOF. WHEREAS, Holigan Land Development, Ltd. (the "Owner") is the owner of certain real property located in the City of Denton, Denton County, Texas and containing approximately 160.023 acres of land. as more particularly described in Exhibit "A" attached hereto by reference (the "Property"); and WHEREAS, the Property is encumbered by certain electric easements that are owned by the City through Denton Municipal Electric ('TIME") which easements are more particularly described as follows; That certain easement from Roland Hill and wife, Liffie Ilah Hill to Brazos River Transmission Electric Cooperative. Inc. dated June 3, 1947, recorded in volume 357, page 56 of the Deed Records of Denton County. Texas and that certain easement from J.B. Schmitz to Brazos River Transmission Electric Cooperative, Inc., dated June 4, 1947, recorded in Volume 354, page 394 of the Deed Records of Denton County, Texas, both of which were assigned to the City of Denton, Texas pursuant to that certain Assignment dated October 23, 1987, recorded in Volume 2736, page 825 of the Real Property Records of the Denton County, Texas (the "Existing Easements"); and WHEREAS, the Owner has petitioned the City to abandon the Existing Easement to the extent they encumber the Property in exchange for the granting of a new easement in substantially the same form as the easement entitled Electric Utility and Bik~ Trail Easement attached hereto and made a part hereof by reference as Exhibit "B" (the ''New Easement"); WHEREAS, the City Council finds that: (1) the value of the New Easement exceeds the value of the Existing Easements as they affect the Property; (2) the property interests being exchanged meet the requirements of Section 272.001(k) of the Texas Local Government Code and this ordinance shall also constitute a resolution; (3) and this exchange and abandonment is in the public interest and serves an important public purpose by allowing DME to provide for future routing of electric transmission lines that will better serve the City and its citizens; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: Page 1 EXHIBIT 1 S:\Our Documents\Ordinances\05\Holigan-Electric Easement AbandonmenLDOC SECTION 1. The recitations and findings contained in the preamhle of this Ordinance are incorporated herein by reference. SECTION 2. The City Council hereby authorizes the abandonment and release of the Existing Easements to the extent they encwnber the Property (the "Abandoment Area"), subject to the following conditions: a. The City receives the fully executed and acknowledged New Easement free and clear of all liens and encwnbrances, except for any encwnbrance that may be deemed by the City Manager, or his designee, to not adversely affect the City's use and enjoyment of the New Easement. b. The City, at its own expense, removes the existing utility facilities from the Abandonment Area. Upon the completion of the above conditions the City Manager, or his designee is authorized to execute a document in recordable form and deliver same to the Owner, that evidences the abandonment and release of the Existing Easements from the Abandonment Area. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. S ER, CITY ATTORNEY BY: Page 2 Exhibit A ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE G. WALKER SURVEY ABSTRACT NUMBER 1330, DENTON COUNTY, TEXAS, AND BEING PART OF THE cALLE~ 91.921 ACRE TRACT DESCRIBED IN A DEED TO FLOWERS BAKING co. OF DENTON, LLC, RECORDED IN COUNTY CLERK'S FILE NUMBER 03-R0159272, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND ALSO BEING DESCRIBED AS ALL OF LOT 2, BLOCK A,FLOWERSFOOD ADDITION, AN ADDITION TO THE CITY OF DENTON, ACCORDING TO THE PLAT THEREOF, RECORDED IN CABINET W. PAGES 333 AND 334, PLAT RECORDS, DENTON COUNTY, TEXAS,AND ALL OF LOT 3, BLOCK A, FLOWERS FOOD ADDITION, AN ADDITION TO THE CITY OF DENTON, ACCORDING TO THE PLAT THEREOF, RECORDED IN CABINET W, PAGES 335 AND 336, PLAT RECORDS, DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A FOUND RAILROAD SPIKE AT A NORTHEAST CORNER OF THE FLOWERS BAKING CO TRACT IN EDWARDS ROAD; THENCE SOUTH 02 DEGREES 40 MINUTES 5.5 SECONDS WEST WITH A EAST LINE OF THE FLOWERS BAKING CO. TRACT AND THE WEST LINE OF A CALLED 16.0 ACRE TRACT DESCRIBED IN A DEED TO RICHARD BARIA. RECORDED IN VOLUME 1329, PAGE 202, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, A DISTANCE OF 698.28 FEET TO A FOUND IRON PIN AT AN ANGLE POINT IN THE EAST L1.NE OF THE FLOWERS BAKING CO, TRACT AT THE NORTHWEST CORNER OF A CALLED 0.968 ACRE TRACT DESCRiBED IN A DEED TO HOLlGAN LAND DEVELOPMENT, LTD.,RECORoED IN DOCUMENT NUMBER 2~50040, OFFICIAL PUBLIC RECQRDS, DENTON COUNTY, TEXAS; THENCE SOUTH 02 DEGREES 43 MINUTES 42 SECONDS WEST CONTINUING WITH A EAST LINE OF THE FLOWERS BAKING co. TRACT AND THE WEST LINE OF SAID 6.968 ACRE TRACT, A DISTANCE OF 1249.03 FEET TO A FOUND IRON PIN AT A SOUTHEAST CORNER OF THE FLOWERS BAKING CO TRA.CT ON THE NORTH LINE OF THE 20.057 ACRE TRACT TO HOUGAN LAND DEVELOPMENT, L TD.RECORDED IN COUNTY CLERK"S FILE NUMBER 03.R0135346, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; r J , , j 'I I I ! l IM~ D pll , ~ L3r BetS f' ! ' j I !a' I J THENCE SOUTH 03 DEGREES 19 MINUTES 02 SECONDS WEST WITH A EAST LINE OF THE FLOWERS BAKING co. TRACT AND A WEST LINE OF THE 2.846 ACRE TRACT A DISTANCE OF 472.97 FEET TO A FOUND FENCE CORNER POST AT AN ANGLE POINT IN A EAST LINE OF THE flOWERS BAKING CO. TRACT AND THE NORTHWEST CORNER OF THE CALLED 0..942 ACRE TRACT DESCRIBED IN THE DEED TO HOLlGAN LAND DEVELOPMENT, LTD. RECORDED IN COUNTY CLERK"S DOCUMENT NUMBER 2004-0230, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; ~ U L "!" !\ i i ~ ~ ~. , THENCE NORTH 87 DEGREES 33 MINUTES 17 SECONDS WEST WITH A SOUTH LINE OF ,THE FLOWERS BAKING CO. TRACT AND A NORTH UNE OF SAID 20.057 ACRE TRACT, A DISTANCE OF 622.20 FEET TO A FOUND IRON PIN AT AN INNER ELL CORNER OF THE FLOWERS BAKING CO. TRACT, AND THE NORTHWEST CORNER A CALLED 2.846 ACRE TRACT DESCRIBED IN A DEED TO HOLiGAN LAND DEVELOPMENT, LTD. RECORDED IN COUNTY CLERK.S DOCUMENT NUMBER 2004-0230, REAL PROPERTY RECORDS, DENTON COUNTY, TEXASj THENCE SOUTH 03 DEGREES 01 MINUTES 21 SECONDS WEST CONTINUING WITH A EAST liNE OF THE FLOWERS BAKING CO. TRACT AND THE WEST LINE OF THE 0.942 ACRE TRACT A DISTANCE OF 224.75 FEET TO A FOUND STEEL PIPE AT A SOUTHEAST CORNER OF THE FLOWERS BAKING CO. TRACT ON THE NORTH RIGHT -OF-WAY LINE OF POCKRUSPAGE ROAD; THENCE NORTH 87 DEGREES 56 MINUTES 40 SECONDS WEST WITH A SOUTH LINE OF THE FLOWERS BAKING CO, TRACT AND THE NORTH RIGHT-OF.WAY LINE OF POCKRUS PAGE ROAD, A DISTANCE OF 218.61 FEET TOA FOUND STEEL PIPE AT A SOUTHWEST CORNER OF THE FLOWERS BAKING CO. TRACT AND THE SOUTHEAST CORNER OF THE TRACT OF LAND DESCRIBED IN THE DEED TO BETTY JOHN ROBERTSON ~ConRDED IN VOLUME 2423, PAGE 932 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, J , TEXAS;,_...l= THENCE NORTH 01 DEGREES 47 MINUTES 13 SECONDS EAST WITH A WEST LINE OF THE FLOWERS BAKING CO. TRACT AND THE EAST LINE OF THE ROBERTSON TRACT A DISTANCE OF 683.38 FEET TO A FOUND IRON PIPE AT AN INNER ELL CORNER Of THE FLOWERS BAKING CO. TRACT AND A NORTHEAST CORNER OF THE CALLED 3.980 ACRE TRACT TO KENNETH D. OWEN RECORDED IN VOLUME 763, PAGE 137 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 87 DEGREES 39 MINUTES 54 SECONDS WEST WITH A SOUTH LINE OF THE FLOWERS BAKING CO. TRACT AND THE IIIORTH LINE OF THE OWEN TRACT A DISTANCE OF 363.71 FEET TO A FOUND IRON PIN AT AN INNER ELL CORNER Of FLOWERS BAKING CO. TRACT; THENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST WITH AN EAST LINE OF FLOWERS BAKING CO. TRACT AND THE WEST LINE Of THE OWEN TRACT A DISTANCE Of 397.16 FEET TO A FOUND IRON PIN; i THENCE SOUTH 39 DEGREES 11 MINUTES 49 SECONDS EAST WITH AN EAST LINE OF FLOWERS BAKING CO. TRACT AND THE SOUTH LINE OF THE OWEN TRACT A DISTANCE OF 362.08 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849 AT THE SOUTHERNMOST SOUTHEAST CORNER OF SAID LOT 2, BLOCK A, ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 29 MINUTES 45 SECONDS WEST WITH A SOUTH LINE Of SAID LOT 2, BLOCK A, AND THE NORTH RIGHT-Of-WAY LINE OF POCKRUS PAGE ROAD A DISTANCE OF 26.69 fEET TO A 1f2 INCH IRON PIN SET WITH A YEllOW PLASTIC CAP STAMPED METROPLEX 1849 AT THE SOUTHERN MOST SOUTHWEST CORNER OF SAID LOT 2, BLOCK A, ON THE EAST RIGHT-Of-WAY LINE Of THE OLD M.K.T. RAILROAD; THENCE NORTH 39 DEGREES 14 MINUTES 16 SECONDS WEST WITH A WEST LINE OF FLOWERS BAKiNG CO. TRACT AND THE eAST RIGHT-Of-WAY LINE Of THE OLD M.K.T. RAILROAD, A DISTANCE OF 391.25 FEET TO A FOUND IRON PIN AT THE BEGINNING Of A CURVE TO THE RIGHT; THENCE WITH THE EAST RIGHT-Of-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 13 DEGREES 29 MINUTES 38 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 662.92 FEET (CHORD Of NORTH 32 DEGREES 31 MINUTES 18 SECONDS WEST A DISTANCE OF 661.39 FEET) TO A 1 f2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849; THENCE SOUTH 87 DEGREES 33 MINUTES 17' SECONDS EAST, A DISTANCE OF 1302.08 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849; THENCE NORTH 02 DEGREES 43 MINUTES 42 SECONDS EAST, A DISTANCE OF 1043.62 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849; THENCE NORTH 60 DEGREES 11 MINUTES 50 SECONDS WEST, A DISTANCE OF 294.75 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849; THENCE NORTH 03 DEGREES 08 MINUTES 54 SECONDS EAST, A DISTANCE Of 587.48 fEET TO A 1f21NCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1f'A9 0Ii. THE SOUTH RIGHT-QF-WAY UNE Of ~!)WARDS ROAD; THENCE SOUTH 86 DEGREES 44 MINUTES 08 SECONDS EAST WITH THE SOUTH RIGHT-Of-WAY LINE OF EDWARDS ROAD A DISTANCE OF 434.98 FEET TO A FOUND IRON PIN; THENCE NORTH 03 DEGREES 30 MINUTES 26 SECONDS EAST A DISTANCE OF 35.49 fEET TO A FOUND RAILROAD SPIKE IN EDWARDS ROAD ON THE NORTH LINE OF THE FLOWERS BAKING co. TRACT; THENCE SOUTH 88 DEGREES 03 MINUTES 58 SECONDS EAST WITH THE NORTH LINE OF THE FLOWERS BAKING CO TRACT A DISTANCE OF 172.15 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 29.530 ACRES Of LAND. PROPERTY DESCRIPTION BEING a tract of land situated in the Gideon Walker Survey, Abstract No. 1330, Den ton County, Texas, and being off of those tracts conveyed to Holigan land Development, Ltd. by deeds recorded in Instrument Numbers 03~135346, 04-9230, 03-207472, 03-166531, 03-207472 and 03-150512, and a portion of that tract conveyed to soid Holigan land Development in Instrument Number 03-194979, all in Denton County land Records, Texas, ond a portion of that tract conveyed to Richard A Baria in Volume 1.329, Page 202, Denton County land Records, Texas, and being more particularfy described as follows: BEGINNING at Q 5/8" iron rod set for comer in Pockrus Page Road, said corner being southeast corner of said tract conveyed to Holigan in Instrument No. 04-9230; THENCE N 87'19'30" W, along the south line of said HoUgan tract, 0 distance of 482.63 feet to a 5/8~ iron rod set for corner in said Pockrus Page Road; THENCE N 8T23'.30n W, continuing along the south line of said HaUgan tract, a distance of 1207.27 feet to a 1/2" iron rod found for corner in said Pockrus Page Road; THENCE N 03'25'31" E, 0 distance of 21.29 feet to a 1/2" iron rod found for corner on the north right of way line of said Pockrus Page Road; THENCE N 87"24'50" W, along the south line of said Holigan tract, a distance of 50.17 feet to 0 fence corner post found for corner on the north right of way line of said Pockrus Page Rood; THENCE N 86'57'30" W, a distance of 187.67 feet to a fence comer post found for corner at the southeast carr &r of a tract conveyed to Flowers Baking Corporation by deed recorded in Instrument No. 0.3-15927.?, Denton County Land Records, Texas; THENCE N 03'13'37" E, along an east line of soid Flowers tract, a distance of 225.57 feet to 0 fence corner post fo md for com er; THENCE N 02'~;8'OJ" E, continuing along on east line of said Flowers tract, () distance of 472.47 feet to a corner a( an ell corner of said Flowers tract; THENCE S 87"17'02" E, olong 0 south line of said Flowers tract, paSSing at () distance of 7.5 feet 0 found 3/4" iron pipe and continuing for a total distance of 245.15 feet to a 5/8" iron rod found for corner; THENCE S 87'27'31" E, continuing arong a south line of said Flowers troct, a distance of 384.45 feet to a 1/2" iron rod found for corner in a southeast corner of said Flowers tract; THENCE N 02'55'12" E, along on eost line of said Flowers tract, a distance of 1359.35 feet to a 1/2" iron rod found for comer at 0 fence corner; THENCE S 86'..17'45" E, deporting said eost line and generally along a fence line, a distance of 819_38 feet to a copped iron rod found for corner on the east line of a tract conveyed to Janice L. Val/on by deed recorded in Volume 5107, Page 720, Denton County Land Records, Texas; THENCE N 02'10'32" E, olong the east line of said Vall on tract, a distance of 568.77 to a 5/8" Iron rod set for comer in Edwards Road; THENCE S 8T1T12~ E, a distance Of 219.23 to a 5/8" iron rod set for corner; THENCE S 02.46'48" W, a distance of 140.00 to 0 5/B" iron rod set for corner; THENCE S 8713'12" E, (J distance of 27.15 to 0 5/8" iron rod set for the point of curvature of 0 curve to the right; THENCE in an easterly direction, along the ore of said curve to the right, through 0 centrar angle of 02.28 '09 N, having a radius of 2000.00 feet, a chord bearing of S 85.59'Or E, a chord distance of 86.18 feet and an arc length of 86.19 feet to a 5/8" iron rod set for a corner; THENCE N 49'04'59" E, 0 distance of 13.83 to a 5/8" iron rod set for comer; THENCE N 02".'e;'4g" E, 0 distGnc,~ of "i.32.30 to 0 5/8" iron rod set for corner in the aforementioned Edwards Road; THENCE 5 87"1.3'12" E, a distance of 657.40 feet to a 5/8" iron rod set for corner at the norfhwest corner of a troct conveyed to the Mory L Mason Children's Trust, as recorded in Volume 4074, Page 1828, Denton ".:ounty Land Records, Texas; THENCE S 02'41'24" W. arong the west line of said Mason trust tract, a distance of 1325.52 feet to Q fence corner post found for corner ot the southwest corner of said tract and in the north line of a tract conveyed to HoJigan Land Development by deed in Instrument No. 04-50045, Denton County Land Records, Texas; THENCE N 87"23'32" W, along soid north line, a distance of 556.47 to 0 5/8" iron rod set for corner ot the northwest corner of said Holigan tract;; THENCE S Q1"15'12n W, along a west line of said Holigan tract, a distance of 1.320.92 to the POINT OF BEGINNING and containing 4,065199 square feet or 93..324 acres of land, more or less. I, the undersigned, do hereby declare that this survey substantially complies with the current Texas Society of Professional Surveyors Standards and Specifications for a Category 1A Condition 11 Survey. Cote of Survey 05-27-2004 fy: Brockette-Davis-Drake, Inc. ~~~~~JJ~~____________ "Mi2h;el B. Marx Pegistered Professional Land Surveyor 5181 PROPERTY)$URVEY 93.324 ACRlES[CIR OSS) rOCKRUS rAGIE & IE!D;WARDS ROAD DENTON COUN1Yp TEXAS [3 BROCKETTE . DAVlSi" DRAKE. inc. I:::>r:::::> con su I tin 9 eng in eers Civil & Structural Engineering' Surveying 4144 North Central Expressway, Suitel~lOO Dallas,Texas 75204 (214)824-3647, fox (21:4)824- 7064 CHECKED DRAWN SCALE NOTES ~llE DATE MBM JL 5/27/04 1 n=200' BG C03292BY NO. 37.16 ACRES FIElD NOTES anthat certain lot. iraCt or parcel oHand situated In 1he G.Welker Survey, Abstract Number' 1330, Denton County, Texas end being .. .Ofe calledTrect A andTfIId B.tnicta of land deecrlbed In the Deedfo Murphy Family Partnerahlp, Ltd. . recorded under COUnty CkM1(aFJIe.Number 96-ROO18035 of the .ReeJ Property Records of Denton County, Texasiandbelng. more pei1k:ularty descr1bed:alfoBows:" .. '. BEGINNING at 8 %- iron rod found for th8Southe8st:bomerof the tract being described hentln at lhe Southeat comer of:aald. . Murphy Tract Aat th~ Sot.ithwe8t comer of a tract of lend de8a1b9d In the OeedtoJoy Powell recorded In Volume 1695, Page 972 of theOeed Records of o.nton .COU~,T8X88.arid In a road under apperentpubl~ U88 posted as Paige Road; . . . . THENCE North 86 Oegr1Ies 29 MInule8-25SeconclirWesttiliong aaklroadand wlthlhe South line ofaeld Tract A, adl8tll1ce Of 594.19 feet toa %clIl'On rod found for the Sot.ithwe8toomer Of UldMurphy Tract.Ajlndtf1e Southeast comer of_1d Murphy Tract B In 88Id road;" . . . . . . . . . . . '. . . . . . . THENCE NOrth ee begl"eM 03 Minute8 03 SecOnds Westcontfnulng &long 881d roedandth8 South lne of said MurphY Tract B, a dlsta.nceof 889.21" fMt to 1%- capPed Iron. rod Htfor the,Souihealt comei' oftl18tn1Ct befngdescrlbed han at the SouIhwast comer of said Murphy Tract B, at the SOutheait COI'ijerot a tract of land. clescribeciln..the Deed to Allen P. Lubbers recorded . under CourltyClerk"a FIle Number 960R.0089629 ofba Real Properly Recorda ofDentGri County. Texas; . . . '- . . . . . - .: - . ....'.: . . ..' . :THENCENorlh 02 Degrees3eMInUtea31~ EastWtththeWeattlne of said Mul'phy1raclB. 8 dlstanceOf1320~31 feetto . B %- Iron rod found for the NortheeMcorrier Of I8Id~urphy TractS; .~. THENCE SOuth 87 Degrees 28 Mkllite$i49 ~ East wtth the North Dne of iaId Murphy "rect B,.. dl8t8nceof 620.84 feet to 'e%. Iron rod found for the Northeast said Murphy .ilac:t B. end the Northwest comer ofaaid Murphy Tiact A; '., . .... i' . '.' . ..' . THENCE South 84. DegAHJ835.Mlnutes 41'.S8c0nc:f8Ee8t with theNorIh line of aid Murphy Tract A. a dlataooe.of 509.67 feet to . a %- capped Iron rod set for the Northeast cornerOr' I1e of said Murphy TraCt A; . . , . .' ..; I: .'. . THENCE South 07 Degrees 47Mlnutes 05 ~ East along and neer 8 fence. a (llatance of 94.12 feet to 8 %" capped Iron . rod set for comer; '. ". t . . "J . . , THENCE. Sotith11 Degrees 25 MInuteS. 57.' 8eoQnd:is East along and near a fence. a d1atance of 107; 70 feet to a %- capped Iron rod Set for comer: ., i .' . · .r! . ;- THENCE South 09 Degrees 11'MlnUtea 39 ,~ E8st along and nUf.. fence, a dlatance of 96.39 feet to a %" cappedlron. rod set for comer; ,:,. . . .. . '" "". . . . '." THENCE South'05 Degrees 33 Minutea60 S8C0ndaEaatatong and neIlr a fencei a distance of 148,90 feet to a %- eeppedlron rod set for comer; . .., . - THENCE South 01 Degrees 31 MII1ute833.aecon.E88t along and near.a fenCe. 8 distance Of 201.34 feet toa %-Iron rod found foroomer; . . "':. . THENCE South 03'Degrees 04 Mnut8s18 ~East a dIstanCe of 22.7 .38fMt to 1 %"lrOn rod found for comer; . . - .. . .,. " . THENCE South 02 DegreeS 27 Mlmlt.. .12 Sec6nda Welt alOng and near's fence, B .dIIt&nce of 300.92 feet to a %- IrOn rod found for comer; . . '. THENCE South 01 Oegreea41 Mlnut8a57.Sac:Onds East a distance of 154.71 feet to to .,.PLACE OF BEGINNING and enclosing 37.16 8Ct88 of landrnora or lees. , '. . . . . . . . -. This Slavey'Sketch rwpl888nt8the nuiulm Of anon..the-ground survey made under my dlf9ctlon and ~ on 11-03-00, There are no visible or 8pperent ~Ion..~ or easement8 except as ihown hereon. . I ! . '- .. ,. - . ,. . ., . . --' . " '. .' . ;'."-.. '. ...,. - ,," .... - . -, . . - .. c_5'~'r' ."-. . J.E. THOMPSON lI.fVl.Ls. No 4857 . Job' 001369 . . .. . 6S;~'S-'-~~~o;i" . Date .'_.......~,,- '-"'-..' . FlOOD STATEMENT: I have examlnedthe.F.E.M,A..FIood.lnsurance Ret9Map Denton County. Texa. Comi'nunlty Number 480774. effective date 4-2-97 and that mao lridlcates that thla DrODertv fa wlthtn "Non-Shaded Zone X"deftned 88 · AraM ELECTRIC UTILITY AND IDKE AND BIKE TRAIL EASEMENT CITY OF DENTON EXIDBIT B THE STATE OF TEXAS ~ ~ KNOWN ALL MEN BY THESE PRESENTS: COUNTY OF DENTON ~ That, Holigan Land Development, Ltd., a Texas limited partnership, hereinafter called "Grantor" whether one or more, for an in consideration of Ten Dollars ($10.00), and other good and valuable consideration, to Grantor in hand paid by the City of Denton, a municipal corporation, which is located in Denton County, Texas, and whose mailing address is 215 E. McKinney, Denton, Texas 76201, hereinafter called "Grantee," has granted, sold and conveyed and by these presents does grant, sell and convey unto Grantee an easement and right of way for the purpose of (i) erecting, operating, maintaining and servicing thereon one or more electric power and/or conununication lines, each consisting of a variable number of wires, cables, and all necessary or desirable appurtenances, attachments and complete supporting strucmres, including foundations, guy wires and guy anchorages, and structural components (the "Electric Use") and (ii) erecting, operating, maintaining and servicing a hike and bike trail for recreational uses (the "Hike and Bike Use") in, on, over, under, and across that real property situated in Denton County, Texas, and more particularly described by as follows (the "Easement" or "Easement Property"): Refer to metes & bounds field note description titled Exhibit "A", and survey plat illustration titled Exhibit "B", both attached herewith and made a part hereof. Grantee shall have the right to construct, operate, improve, reconstruct, increase or reduce the capability, repair, relocate, inspect, patrol, maintain or remove such lines and other improvements within such easement as Grantee may from time to time find necessary, convenient or desirable to erect thereon and all rights necessary or convenient for full use of the above grant, including reasonable access over, across and upon the above referenced land to such easement to the extent such access does not materially affect Grantor's operational usage of such land. Grantor shall have the right to use the easement for any purpose not inconsistent with Grantee's full enjoyment of the rights herein granted, except as otherwise specified herein. Grantee shall have the right to trim or remove trees and shrubbery to the extent necessary, in the sole judgment of Grantee, to prevent possible interference with the operation of such lines and other improvements or to remove possible hazards thereto. Grantee shall remove from the Easement tree limbs, and clean up other debris, resulting from Grantee's operations hereunder. Grantee acknowledges that no currently existing buildings and/or structures will be affected by this Easement. Grantee shall have the right to remove or prevent the construction of any or all buildings, structures, signs and obstructions within this Easement. If any such buildings, structures, signs or obstructions are hereafter constructed or permitted by Grantor to exist within the Easement without Page 1 S:\Our Documents\Contracts\05\Holigan-City Electric-Trail Easement.doc prior written consent of Grantee then Grantee shall have the right to remove the same and Grantor agrees to pay to Grantee the reasonable cost of such removal. Grantee shall have no right to fence or enclose the Easement or to use it for any purpose other than as set out above. The right of the Grantor to use the Easement Property for all other purposes that will not interfere with the exercise of the rights of Grantee is reserved to the Grantor; provided that all such uses shall be subordinate to this Easement and all such facilities shall be properly grounded. and shall be so constructed as to provide with respect to Grantee's lines and other facilities the minimum clearance provided by law. and recognized as standard in the electrical industry. Grantor shall not have the right to erect or maintain fences within the Easement Property. Grantee shall not be liable for damage or loss to crops sustained in the future by Grantor resulting from the Grantee t s construction. reconstruction, repair. replacement. or other use of this Easement. .. TO HAVE AND TO HOLD the above Easement and right of way unto Grantee. its successors and assigns, and Grantor hereby warrants and forever agrees to defend the above described Easement and right of way unto Grantee, its successors and assigns. against every person whomsoever lawfully claiming or to claim the same or any part thereof, by. through, or under Grantor, and not otherwise. subject. however. to the rights of the owner or owners of any existing easements within the. Easement Property . . Notwithstanding any provision herein to the contrary, the Easement, right-of-way and rights provided herein for the Electric Use shall at all times and for all purposes be superior to the easemen~. right-of- way and rights provided herein for the Hike and Bike Use. Grantee acknowledges and agrees that Grantor has or intends to convey to the Flowers Baking Co. of Denton, LLC, a Texas limited liability company ("Flowers") certain perpetual, non-exclusive easements for the purpose of drainage and retention of storm and surface waters upon anp. through certain property that includes the Easement Property (the "Flowers Easement"), which: Flowers Easement was recorded in the Real Property Records of Denton County, Texas on June 23. 2005 under Document number 2005-75250. The easements and rights of Flowers provided for in the Flowers Easement shall be subordinate to the easements, right-of way, and rights provided for herein. Notwithstanding any provision herein, Grantor shall have the right to execute. deliver and record the Flowers Easement and the Grantee hereby expressly acknowledges (i) that the easements in favor of Flowers in paragraph 1 of the Flowers Easement are approved by the Grantee. (ii) that the portion of the Easement Property burdened by the this instrument and the easements. right-of-way and rights created hereunder. shall perpetually accept the Existing Discharge (as defmed in the Flowers Easement) subject to the terms and provisions of paragraph 1 of the Flowers Easement either into the Drainage Channels (as defmed in the Flowers Easement) or into the Alternate Drainage Facilities (asdefmed in the Flowers Easement), as applicable, and (iii) that with the Grantee's written consent. which,shall not be unreasonably conditioned, denied or delayed, Flowers shall have the right to enter.. upon the Easement Property to complete any maintenance of the Drainage Channels, Retention Pond (as defined in the Flowers Easement), or Alternate Drainage Facilities that Flowers may be entitled to perform under paragraph 1 of the Flowers Easement. . This easement. together with the other provisions of this grant. shall constitute a covenant running with the land for the benefit of Grantee, it successors and assigns. The right hereby granted is severable and may be assigned either in whole or in part. Page 2 S:\OUf Documents\Contracts\05\Holigan.City Electric-Trail Easement.doc EXECUTED this day of ,2005. HOLIGAN LAND DEVELOPMENT, LTD. By: Printed Name: Title: ACKNOWLEDGMENT THE STATE OF ~ COUNTY OF ~ This instrument was acknowledged before me on this the _ day of , 2005 by , general partner of Holigan Land Development. Ltd., a Texas limited partnership, on behalf of such limited partnership. Notary Public - State of My Commission Expires Accepted this _ day of (Resolution No. 91-073). , 2005 for the City of Denton, Texas By: Paul Williamson Real Estate Manager After Recording, Return to: Paul Williamson, City Hall East City of Denton, 601 E. Hickory, Suite B Denton, Texas 76205 Page 3 S:\OUt Documents\Contracts\05\Holigan-City Electric-Trail Easementdoc T :!&;= 'i~. ~. EXHlBIT' A' PAGE 1 OF3 34102. ' 05/02105 ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEJNG SITUATED IN TIIE G. WALKER SURVEY ABSTRACT NUMBER 1330, DENTON COUNTY, TEXAS, AND BEING PART OF THE CALLED 9].92] ACRE TRACT DESCRIBED IN A DEED TO FLOWERS BAKING CO. OF DENTON, LLC, RECORDED IN COUNTY CLERK'S FILE NUMBER 03~f{O]59272. REAL PROPERTY RECORDS DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRJBED AS FOLLOWS: COMMENCING AT A 112 INCH IRON PIN FOUND AT THE SOUTHERN MOST SOUTHWEST CORNER OF FLOWERS BAKING CO. TRACT AND THE NORTH RIGHT -oF~W A Y LINE OF POCKRUS PAIGE ROAD. SAID PIN ALSO BEING ON THE EAST RIGHT -OF~W A Y LINE OF T'HE OLD M.K. T. RAILROAD; THENCE NORTH 39 DEGREES ]4 MINUTES 16 SECONDS WEST WlTII THE SOUTHWEST LINE OF SAID FWWERS TRACT, A DIST ANeE OF 412.02 FEET TO A ]/2 INCH IRON PIN FOUND ON THE SOUTHWEST LINE OF SAID FWWERS TRACT AND THE BEGINNING OF A CURVE TO 'I1IE; RIGHT; . THENCE WI1llSAID CURVE TO THE RlGHT HAVING A CENTRAL ANGLE OF 02 DEGREES 03 MINUTES 43 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 101.30 FEET, AND A CHORD BEARING NORTH 38 DEGREES 14 MINUTES 15 SECONDS WEST. A DISTANCE OF ] 01.29 FEET TO A POINT ON THE SOUTHWEST LINE OF SAIl) FLOWERS TRACT AND BEING THE POINT OF BEGINNING OF TIlE HEREIN DESCRIBED EASEMENT; THENCE CONTINUING WITH SAID CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE OF 01 DEGREES 25 MINUTES 33 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 70.04 FEET, AND A CHORD BEARING NORTH 36 DEGREES 29 MINUTES 38 SECONDS WEST, A DISTANCE OF 70.04 FEET TO A POINT ON THE SOUTHWEST LINE OF SAID FLOWERS TRACT; THENCE NORTH 51 DEGREES 37 MINUTES 01 SECONDS EAST. A DISTANCE OF 117.28 FEET; THENCE NORTIl 03 DEGREES 03 MINUTES 00 SECONDS EAST, A DISTANCE OF 334.05 FEET; THENCE SOUTH 87 DEGREES 33 MINUTES 17 SECONDS EAST, A DISTANCE OF 940.82 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE NORTH 02 DEGREES 43 MINUTES 42 SECONDS EAST, A DISTANCE OF 1043.62 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE NORTH 60 DEGREES 11 MINUTES 50 SECONDS WEST, A DISTANCE OF 294.75 FEET TO A 112 INCH IRON PIN SET wITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE NORTH 03 DEGREES 08 MINUTES 54 SECONDS EAST, A DISTANCE OF 30.18 FEET; THENCE NORTH 10 DEGREES 34 MINUTES 45 SECONDS EAST,A DISTANCE OF 555.31 FEET; THENCE SOUTH 86 DEGREES 44 MINUTES 08 SECONDS EAST, A DISTANCE OF 380.18 FEET; THENCE SOUTH 03 DEGREES 08 MINUTES 54 SECONDS wEST. A DISTANCE OF 70.00 FEET; " ~,/!" "".;; " PAGE20F3 THENCE NORTH 86 DEGREES 44 MINUTES 08 SECONDS WEST, A DISTANCE OF 318.73 FEET; THEN~E SOUTH 10 DEGREES 34 MINUTES 45 SECONDS WEST, A DISTANCE OF 47257 FEET; . THENCE SOUTH 60 DEGREES 11 MINUTES 50 SECONDS, EAST, A DIST ANCEOF 291.99 FEET; THENCE SOUTH 02 DEGREES 43 MINUTES 42 SECONDS WEST, A DISTANCE OF llS6:.11FEET; lHENCENORTH 87 DEGREES 33 MINUTES 17 SECONDS WEST, A DISTANCE OF 94~.2.1 FEET; THENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST, A DISTANCE OF 96.51 FEET T' TO A 112 INCH IRON PIN FOUND AT THE NORTHWEST CORNER OF A TRACT DES.cRIaED IN A DEED. TO KENNETH D. OWEN. RECORDED IN VOLUME 763, PAGE 137, DEED RECORDS, . DENTON COUNTY, TEXAS AND AN INNER ELL CORNER OF SAID FLOWERS TRACT; TIlENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST WITH lHE EAST LINE OF SAID FLOWERS TRACT AND THE WEST LINE OF SAID OWEN TRACT, A DISTANCE OF 199.86 FEET TO A POINT ON THE WEST LINE OF SAID OWEN TRACT AND THE EAST LINE OF SAID FLOWERS TRACT; THENCE sourn 51 DEGREES 37 MINUTES 01 SECONDS WEST, A DISTANCE OF 151.17 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 5.886 ACRES OF LAND. . '." ,', " . ~ -'- ".. . , ~ ;" ".: ...: ~ .'-..... :"". ~~ ':;'.:.'.:';--:": ': . :........ ~_ c "...~~ "~- ,."' "~.t, ,--'::..._-.~...;,' .V UNE TABLE L1 N39"1416 L2 . N51"37'Ol"E L3 N03"Q3'OO"E L4 58133'17 E L5 NOT 43' 42"E L6 N6D" 11'SO"W L7' N03,"Oa 54 E L8 Nl0"34'45"E L9 ' 586"4408 E Ll0 50JOS'S4*'W L 11 N86'44'08'\Y Ll2 510"34'45'W ' L 13560'11'50"[ L 14 SOT 43' 42"W , L15 N8733'17"W L 16 SOS03'OO"W L 1 7 503'03' L18 551'37'01"W, C ,. . 'i..... ._'~? .: c 'PI EXHI::.BIT B ;PAGEt' 3 OF, 3 -EDWARDS-ROA'D, 412;02 117.28 3~4.05 940.82 1 043.62 294.75 30.18 555.31 380~ 18 70.00 318.73 472.57 , 291.99 1 , 156. 11 941.21 96.51 199.86 151.17 ' C1 C2 RADIUS:, 2,814.79 2814.79 DaTA: 2"03'43.... 1-25'3;:;" LENGTH 101.30 70.04- CHORD: N3S"14'15"W N3S29'38"W N w .E' s , ~iE.'i . ~ SUf\ 30 , . /'-.\.:(...6, NO. ~ 3 G. \N f\/'-.C\ , Ji..eS\ . , fLOWERS BAl<INGCO. OF DENTON lLC CCfOJ-R159272 RPR 5.886 ACRES' 'I&. '0 . N 80 t:i ~:f! -Z'1I:::1l!: . !~~:2 ..1 8. g 15 20 o.:g ~~~ C 80.. N~ c' si ~ ~ ~ PAIGE ROAD . M\etr9plex 'SurveYlng, I.ne. 940-387-0506 223 W. HICKORY, DENTON, TEXAS 76201 info@metropJexsurveying.com lVN. ~RM eKD. BGS SC~1n=300. DATE 05/02/05 I ,..-.2..~_...L 10 " L11 La' I . I I ' I 'L 12 I I FLOWERS SAl<ING co. OF , I '. DENTON LLC I. CCf03-R159272 RPR ..............L13 ..... ...... ' ." + L5 'L 14 , '. L 4 . ~'g"N1~NI 70. UTIUl'1 E"ASEMENT . I t------~-LT5------.... g ~ ~~ $.~~ ~fo.. ~aa: ~~ . () ~ ~ :r NO.34102 , , ~.. ..olI~~ .<'~' -R 'of,".. ,.'.-..:...........!', ....:::.;~f .-...T'.....l;....u, :.~...' .....;::;.:~..",.;JM.....~l.~.>.l ~-~;.. ..i-"l:" 1 2 3 4 5 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR SEPTEMBER 12, 2005 9:00 A. M. DRAFT 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 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, Sept 12, 2005 at 9:12 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Charldean Newell, Dick Smith John Baines arrived at approximately 11 :06 a.m. EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: Phil Gallivan 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 4. 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. Page 1 of 2 EXHIBIT 2 1 2 1) Consider recommending approval authorizing the expenditure of funds for payments by the 3 City of Denton for electrical energy transmission fees to those cities and utilities providing 4 energy transmission services to the City of Denton; and providing an effective date (File 5 3396-Electrical Energy Transmission Fees in the total amount of $134,421). 6 7 2) Consider recommending approval for the purchase and installation of replacement Caron 8 landfill compactor wheel tips for use on the Caterpillar Model 826 compactor at the City's 9 landfill from Caron Compactor Company, Escalon, CA., in the amount of $34,397.84. 10 11 3) Consider recommending approval of an ordinance authorizing the abandonment and release 12 of certain blanket electric utility easements owned by the City, to the extent that they 13 encumber certain real property owned by Holigan Land Development, Ltd. containing 14 approximately 160.023 acres and being located in the Gideon Walker Survey, Abstract No. 15 1330, Denton, Denton County, Texas. 16 17 4) Consider recommending approval of a Professional Services Agreement between the City of 18 Denton and Arthur Surveying Co., Inc for the delivery of routine surveying services on a 19 work order basis for fiscal year 2005-2006, in an amount not to exceed $200,000.00. 20 21 Board Member Dick Smith moved to approve Consent Agenda Items 1-4 with a second 22 from Board Member Bob Bland. The motion was approved by a vote of 4 to O. 23 Page 2 of 2 . . ~ I . .t . . . . . ..... --:.'WI. · ... -.; I . . I . . . I ~... . ~. L . ~ . I . . -I . . . . I -=- r: .... ... ~ ~~~~ .. . .. I .. ~~. . . ~ I . I I I . t . - =- . ^ . . . ...~- . -.:, ..... ..........,.... -~ . . !jj . I .... . . . I ~ :r-.IIi , ....... .. J l. -=.,..,. tII ~ - . . . . . . . ~ . . !f.< . I . t:' . ~ --. .1 . . ~ ,~ ,.. - ~-~ ~ ~ ~ . . . . ~ . . . ... ~ ;;=, . . . . ;.~ . . - ~ . ~. . . . .II ;'i -: :i - : .... L- 'I. ~. ......:.. tI-iL- . . ...-. I .. - . .. . . :II '!M." . . - . . . . . . . . I . . ~ . . . . . . ~ ~ I ~ It.~ . . . I . . . ~ t . . ...,. . . .... ~ i..... ~:-t~' . . . . . ~ j\ . . . . . /. . . .. . . -:it ... .. · :.~_.. t.-.,k ~ ~ . . . . I -., . . · ~ -,: -:...- JIIII.._ I.. . . I: . . . ~ . (A . . . - . . . . . . ... . .. ~' .. I *~ . .. . ~irr . :n~.1 I .. . . ~- . .. ~.. ,\{ ~~ . . - ~ -.. . ,.- - ~ .... f-I . . ~ I-. ...: · -i I ~ .. .,... ..p. r-,.. ~ II . . . . I . I. .. . II ~ :! a-:. '" ~ ~ -~ o. ~. . :. j' ..._ ~ J~ . . . I . . . . I . '.' . A ~ . . " . . . I ~ ~- . . ~~_. -'. ~ . . . . . . . . I ~ . . . - . ~ i I . . - .. . . . [Ii 4 r._ . . . -- . . ~ .. . . I . . . ..~..rtI. . ......, . . . .. )..-= . =- ~ . ~~ . I. . 'g . . . 1 . .c:... -. 1 . . .1:1 . ~ ( . . . . ... . .. 1 . . . I . :. . . -~ .. .'Iifo!!!iif;: . . . - . ... t.~ AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Planning and Development Department ACM: Jon Fortune rt SUBJECT CONSIDER A RESOLUTION OF THE CITY OF DENTON FINDING AND DETERMINING THAT THE NUMBER OF INHABITANTS IN THE CITY OF DENTON IS IN EXCESS OF 100,000; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND Chapter 42 of the Texas Local Government Code establishes the extraterritorial jurisdiction of a municipality. Further, Chapter 42 of the Texas Local Government Code establishes the extraterritorial jurisdiction (ETJ) of a municipality to be within five miles of those boundaries, in the case of a municipality with 100,000 or more inhabitants. The Council has previously discussed the importance of extending the city's ETJ when Denton's inhabitants reached 100,000. The City of Denton has performed appropriate research concerning the number of inhabitants in the City of Denton and has received a report from Dr. Margie Tieslau, a statistician at the University of North Texas, that the number of inhabitants in the City of Denton exceeds 100,000. OPTIONS 1. Approve the resolution. 2. Approve the resolution with amendments. 3. Deny the resolution. 4. Table the resolution for additional information. FISCAL INFORMATION This will extend the physical area of the City of Denton ETJ from the current 3.5 miles to five miles. There is no direct fiscal impact expected. EXHIBITS Resolution Respectfully submitted: ~~ Kelly Carpenter, AICP Planning and Development Director S:\OUf Documents\Resolutions\05\Jnhabitants Resolution.doc RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON FINDING AND DETERMINING THAT THE NUMBER OF INHABITANTS IN THE CITY OF DENTON IS IN EXCESS OF 100,000; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Chapter 42 of the Texas Local Government Code establishes the extraterritorial jurisdiction of a municipality; and WHEREAS, Section 42.021 of the Texas Local Government Code establishes the extraterritorial jurisdiction of a municipality to be within five miles of its boundaries, in the case of a municipality with 100,000 or more inhabitants; and WHEREAS, the July 1, 2004 population of the City of Denton as estimated by the U.S. Bureau of the Census was 98, 288 as set forth by the Bureau in its July 12, 2005 publication; and, WHEREAS, based on City building permit, certificate of occupancy, and utility connection records, other data available to the City, and reliable demographic and statistical analysis, the number of Denton inhabitants exceeds 100,000; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are incorporated herein by reference and are true and correct. SECTION 2. The City Council hereby finds and determines that the number of inhabitants in the City of Denton exceeds 100,000. SECTION 3. 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: Page 1 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Airport and Transportation Operations ACM: Jon Fortune, Assistant City Manager If SUBJECT Consider adoption of an ordinance of the City of Denton, Texas approving and authorizing the Mayor to execute an asset purchase agreement, bill of sale and other documents transferring all buses, equipment and other assets from the city passenger motor carrier transit system known as LINK to the Denton County Transportation Authority and authorizing the mayor to execute an assignment of that certain agreement to provide the services for the passenger motor carrier transit system known as LINK, with McDonald Transit Associates, Inc. dated April 16, 2002, as amended, to the Denton County Transportation Authority; authorizing the extension of that certain interlocal cooperation agreement with the Denton County Transportation Authority effective October 1, 2004 and an extension of the McDonald Transit Associates, Inc. agreement, if necessary, authorizing necessary actions and the expenditure of funds to complete the transfer; and providing an effective date. BACKGROUND In September of 2003, voters approved a 1Iz cent increase in the City of Denton's sales and use tax to provide funding for the Denton County Transportation Authority (DCTA). The purpose of the DCTA is to implement a Service Plan that provides public transportation and transportation related services in those cities in Denton County who have authorized sales and use tax levy. Part of the DCTA Service Plan includes the operation of LINK's Fixed Route, Demand Response services and the University of North Texas bus service. On July 26, 2005 and on August 30, 2005 resolutions were adopted by the City of Denton demonstrating the City's intent to sell or transfer the LINK Operation and related assets to the DCT A. The attached Asset Purchase Agreement, Bill of Sale and related documents provides for the transfer of all assets related to and necessary for the LINK Operations. It is important to note the intent of the agreement is to ensure the sale is approved or otherwise agreed to in FY 2005, but is contingent upon approval of the Federal Transit Administration. The proposed agreement also provides for the assignment of the LINK operating agreement between the City of Denton and McDonald Transit Associates, Inc. to the DCT A. The McDonald operating agreement provides for day-to-day management of operations, dispatching and vehicle maintenance services. The contract has a two-year primary term, October 1, 2002 through September 30, 2004, and three one-year options to extend. In June 2004, the contract was extended for one year, October 1, 2004 through September 30, 2005. Two one year-options remain available for DCT A should they elect to extend the operations agreement with McDonald. A contingency has been included in the ordinance in the event the closing date of September 30, 2005 is not met. This contingency will provide the opportunity to extend current operating agreements with McDonald Transit Associates and DCT A to reduce the potential of a gap in public transportation services. RECOMMENDATION: Staff recommends approval. PRIOR ACTIONIREVIEW: The DCT A Staff and Legal Counsel have approved the agreement. The City Attorney and City Staff have reviewed and approved the agreement. FISCAL INFORMATION: The City of Denton will receive $233,000, in FY 2005, for the sponsor's share of the LINK System. FT A and TxDOT grants provide for 80 percent of public transportation capital costs. The $233,000 is a negotiated price based on the undepreciated value of the City's 20 percent investment in the system. EXHIBITS Ordinance Asset Purchase Agreement Escrow Agreement Other Bus Transfer Instrument Use Agreement Assignment - McDonald Transit Associates Respectfully submitted: -nf~ &AA- Mark Nelson Director of Airport and Transportation S:\Our Documents\Ordinances\05\Asset Transfer and Assignment of McDonald Agreement2.doc ORDINANCE NO. AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN ASSET PURCHASE AGREEMENT, BILL OF SALE AND OTHER DOCUMENTS TRANSFERRING ALL BUSES, EQUIPMENT AND OTHER RELATED ASSETS FROM THE CITY PASSENGER MOTOR CARRIER TRANSIT SYSTEM KNOWN AS LINK TO THE DENTON COUNTY TRANSPORT A TION AUTHORITY AND AUTHORIZING THE MAYOR TO EXECUTE AN ASSIGNIv1ENT OF THAT CERTAIN AGREEMENT TO PROVIDE THE SERVICES FOR THE PASSENGER MOTOR CARRIER TRANSIT SYSTEM KNOWN AS LINK, WITH MCDONALD TRANSIT ASSOCIATES, INC. DATED APRIL 16, 2002, AS AMENDED, TO THE DENTON COUNTY TRANSPORTATION AUTHORITY; AUTHORIZING THE EXTENSION OF THAT CERTAIN INTERLOCAL COOPERATION AGREEMENT WITH THE DENTON COUNTY TRANSPORTATION AUTHORITY EFFECTIVE OCTOBER 1, 2004 AND AN EXTENSION OF THE MCDONALD TRANSIT ASSOCIATES, INe. AGREEMENT, IF NECESSARY; AUTHORIZING NECESSARY ACTIONS AND THE EXPENDITURE OF FUNDS TO COMPLETE THE TRANSFER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 26th day of July! 2005, the City Council passed Resolution No. R2005-028 expressing its intent to sell and transfer all LINK public transportation service assets to the Denton County Transportation Authority ("DCTA") and 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 DCT A or its service contractor until the parties complete negotiations on an Agreement with the DCT A to transfer the LINK assets and the parties have executed the Agreement effectively selling and transferring all the LINK public transportation assets to DCT A; and WHEREAS, on the 30th day of August, 2005, the City Council passed Resolution No. R2005-031 expressing its intent and notifying the Federal Transit Administration (FTA) of the City of Denton's intent to transfer the federal capital interest and certain vehicles and equipment in the City of Denton's possession currently used for public transportation services provided by LINK to the DCTA and expressing the City's desire to assign the rights and responsibilities under Section 5307 federal grant interests with an exception to the DCTA; and WHEREAS, on July 28,2005, DCTA passed Resolution No. R59-05 expressing its intent to purchase from the City all the City's assets that are necessary and appropriate for public transportation service and thereafter passed a Resolution expressing its intent to purchase these assets and to notify the FT A of this intent; and WHEREAS, DCTA and the City have. negotiated an Asset Purchase Agreement, Bill of Sale and other documents which will effectively transfer all assets currently known as the LINK Public Transportation Service to DCT A; and S:\Our Documents\Ordinances\05\Asset Transfer and Assignment of McDonald Agreement2.doc WHEREAS, as a part of the transfer of the LINK assets to DCT A, the City staff recommends that the City assign that certain Agreement to Provide Services for Passenger Motor Carrier Transit System between the City and McDonald Transit Associates, Inc. dated April 16, 2002, as amended, to the DCT A; and WHEREAS, the City Council deems it in the public interest to assign the current agreement with McDonald Transit Associates, Inc. to the DCT A and approve the transfer of the public transportation assets known as LINK and described in the Asset Purchase Agreement to DCTA; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The fmdings 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. That the City Council hereby approves and authorizes the Mayor, or in her absence, the Mayor Pro Tern, to execute the Asset Purchase Agreement, the attached Bill of Sale and other transfer documents necessary to affect the transfer of all the buses, equipment and other assets known as the LINK Public Transportation Service to the DCT A in substantially the form of the attached Asset Purchase Agreement, Bill of Sale and attached documents. SECTION 3. That the City Council hereby approves and authorizes the Mayor, or in her absence, the Mayor Pro Tern, to execute the attached Assignment of the City of Denton's interest in that certain Agreement to Provide Services for Passenger Motor Carrier Transit System with McDonald Transit Associates, Inc. dated April 16, 2002, as amended, to the DCT A in substantially the form attached. SECTION 4. That the City Manager, or his designee, is hereby authorized to make expenditures of funds and take all other actions necessary to complete the transfer of the LINK Public Transportation Service System to the DCTA. SECTION 5. That in the event the closing date for the transfer of all the buses, equipment and other assets known as the LINK Public Transportation Service to the DCTA is extended beyond September 30,2005 the Mayor, or in her absence, the Mayor Pro Tern, and the City Manager or his designee, are authorized to enter into an extension of the futerlocal Cooperation Agreement with the Denton County Transportation Authority, effective October 2004 providing LINK operations ftmding and to extend the above-mentioned Agreement with McDonald Transit Associates, Inc. until November 15, 2005 after said extension agreements have been approved as to the form by the City Attorney. SECTION 6. That a true and correct of an executed copy of this Ordinance will be transmitted to the appropriate officials at the FTA by Mark Nelson, Director of Airport & Transit Operations, immediately upon its passage and approval. Page 2 of3 S:\OUT Documents\Ordinances\05\Asset Transfer and Assignment of McDonald Agreement2.doc 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: APPROVED AS TO LEGAL FORM:: EDWIN M. SNYDER, CITY ATTORNEY BY: /M~ Page 3 of3 ASSET PURCHASE AGREEMENT Between DENTON COUNTY TRANSPORTATION AUTHORITY Buyer And CITY OF DENTON, TEXAS Seller, For the Sale and Purchase of Certain Assets of City of Denton, Texas Dated as of September 30,2005 785236.28JSP3/13144JO 101/091605 ARTICLE I 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15. 1.16. 1.17. 1.18. 1.19. 1.20. 1.21. 1.22. 1.23. 1.24. 1.25. 1.26. 1.27. 1.28. 1.29. 1.30. 1.31. 1.32. 1.33. 1.34. 1.35. 1.36. 1.37. 1.38. 1.39. ARTICLE II TABLE OF CONTENTS Page DE FIN ITI ONS ..... .... ........ ... . .. ......... .... . ... ... ..... ... ... .... ... ... .... ... ..... . .. ..... ...... 1 "A t" 1 greemen . . ... ..... ... ..... ....... ..... ... ... .. ... ... ..... . ..... ..... .. ... .... ... ..... .... .. ..... .... "Assets" ................................................................................................... 1 "Assignment of McDonald Operating Agreement" ................................... 1 "Assignment of Service Marks"......... n..................................................... 1 "Bill Of Sale" . ............ ........... .................................................................... 1 "Buses" ........................... p....................................................................... 1 "B u siness" ............................................................................................... 2 "B' D" 2 uSlness ay........................................................................................ "Business Intellectual Property" ....... ......... ................................ ............... 2 "B u ye r" .. . .. .. . . .. .. . .. .. . .. . .. .. . .. . .. . .. .. . .. . .. . .. . . . .. . .. ... .. .. . .. . .. . .. . .. . .. . . . . .. . .. . .. . .. . .. . . .. .. . 2 "Buyer Documents"......................................................................... n....... 2 "CI . " 2 oSlng ...........................,...................................................................... "Closi ng Date".......................................................................................... 2 "Code" ..................................................................................................... 2 "Effective Time" ....................................................................................... 2 "E' t" 2 qUI pmen . ... ..... ....... ..... ... ..... . .. . ... .... . ... ... .. ...... ... . ... ... ... .... ... .. .... .. ..... ..... "Escrow Agent" .................,................... ...................................................2 "Escrow Agreement" ................................................................................ 2 "FT At! .................................,...................................................................... 2 "Governmental Body" .............................................................................. 3 "Knowledge of Buyer," "Buyer's Knowledge" ...........................................3 "Knowledge of Seller," "Seller's Knowledge" ...........................................3 "Liabilities" .... .......................................... ....................................... ..........3 "Lien" ......................................... P............................................................ 3 "Losses" ................................................................................................... 3 "Master Lease Agreement" ......................................................................3 "Other Buses" ................... ',' ..... ....... .... ....... .. ... ....... ... ... ...... ... ... ...... .. ... .... . 3 "Other Bus Transfer Instrument".............................................................. 3 "Person".........................,.. ....... .................. ............................................... 3 "Purchase Price"...................................................................................... 3 "Seller" ............ ..... .................................................................................... 3 "Seller Docu ments" .. ..... . ... ... . .... . ... ... . . ... ... ..... ... ... .... ... ... .... ... ..... .... .. ......... 4 "Shelters and Benches" .... ... ........ ........ ........ .............. ............ .................. 4 "T axes" .................................................................................................... 4 "Titles" .................................................................................................... 4 "TXDO T" .. . .. . .. .. . .. . . . .. . .. .. . .. . .. .. . .. . .. . .. .. . .. . .. . .. .. . .. . .. . .. .. . .. . .. . .. . .. . .. . ... .. . .. . . .. .. . . 4 "U . S. DOT" .. . .. . . . .. . .. . .. .. . .. . .. .. . .. .. . .. . .. . . . .. . .. . .. .. . .. . .. . .. .. . . .. . .. .. . .. . .. . . .. .. . . .. . .. .. . . 4 "Use Agreement" ................. ........ ........... ......... ....... ............... ...... ..... .......4 'Vehicles" ............................................................................................... 4 SALE AND PURCHASE OF CERTAIN ASSETS AND CONVEYANCE OF OTHER ASSETS........... ...................................... ..............................4 785236.28/SP3/13144/0101/091605 2.1. 2.2. 2.3. ARTICLE III 3.1. 3.2. ARTICLE IV 4.1. ARTICLE V 5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 5.8. 5.9. 5.10. 5.11. 5.12. 5.13. ARTICLE VI 6.1. 6.2. 6.3. 6.4. 6.5. ARTICLE VII 7.1. 7.2. 7.3. 7.4. 7.5. ARTICLE VIII 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. Sale of Certain Assets. ................... ........... ........... .......... ......... .... ..... ....... 4 Transfer of Other Buses. ......................................................................... 5 "AS IS" Transfer....... ............. ................... .......................................... ...... 5 CL OS I NG ................................................................................................ 5 Closing Date. ........................................................................................... 5 Deliveries at the Closing. .........................................................................5 PURCHASE PRiCE...... .... ... ........ .... .... ............... .......... .... ........ ............... 8 Purchase Price. ....................................................................................... 8 REPRESENTATIONS AND WARRANTIES OF SELLER .......................8 Organ ization. ........................................................................................... 8 Authority; Consents and Approvals. ........................................................ 8 Title to Assets and Other Buses. .. ........................................................... 9 No I njunctions or Orders.......... ................ ............................ .................... 9 Compliance with Laws......... ........... ..... ............ ....... ........ ......... ................9 Contracts. ...................................................................................'............. 9 Brokers. ............................. .................................................. .-................ 9 Patent or Trademark Claims.................................................................... 9 Valid Representations and Warranties. .............. ..... ....... .........................9 No Taxes Due............................... ........... .............................................. 10 No Liens. .................. ......................................................................... .... 10 Prudent Business Operation.................................................................. 10 Litigation................................................................................................ 10 REPRESENTATIONS AND WARRANTIES OF BUYER.......................10 Organization. ....................;.................................................................... 1 0 Authority, Consents and Approvals. ...................................................... 10 No I njunctions or Orders........................................................................ 10 Litigation. ................. ........................................... ................... -......... ...... 11 Brokers. ................................................................... .................... .......... 11 FURTHER AGREEMENTS............... ......... ................... ........................ 11 Additional Actions by Seller and Buyer..... ........................................ ..... 11 Announcements............................... ...................................................... 11 Transaction Costs.... ............ ........ ........ ............... .... ...... ......... ........... .....11 Fire and Casualty. ................................................................................. 11 FT A ApprovaL................... ...................................................................... 12 MiSCELLANEOUS...."..................................................................."..... 12 Entire Understanding, Waiver, Etc......................................................... 12 Severability. ....... ............................ .................. ...................................... 13 Accou nting Terms.................................................................................. 13 Notices. ................................................................................................. 13 Successors and Assigns. ...................................................................... 14 Waivers. ................................................................................................ 14 785236.28/SP3I13144/0101/091605 H 8.7. Counterparts...... ......... ........................... ............. ................................... 14 8.8. Attorneys' Fees and Costs. ............. ........ ................................ .............. 14 8.9. Headings. _...... ........... ..... ................~..................... .... ............................. 14 8.10. Governing Law. .................... ................................................................. 14 iii 785236.28/SP3/13144/0 10 1/091605 EXHIBITS Exhibit 1.4 - Assignment of Service Marks Exhibit 1.5 - Bill Of Sale iv 785236.28JSP3I13144JO 101 J091605 SCHEDULES Schedule 1.9 - Business Intellectual Property Schedule 1.16 - Equipment Schedule 1.33 - Shelters and Benches Schedule 1.39 (a) - Buses Schedule 1.39 (b) - Other Buses Schedule 5.6 - Contracts v 785236.28/SP3/13144/01 01 /091605 ASSET PURCHASE AGREEMENT This Asset Purchase Agreement (this "Agreement") is entered into as of the _ day of September 2005, by and between CITY OF DENTON, Texas, a Texas municipal corporation and home rule city ("Seller"), and DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision, and a coordinated county transportation authority created pursuant to Chapter 460, Texas Transportation Code ("Buyer") (occasionally collectively, the "Parties" and individually, a "Party"). WHEREAS, a portion of Seller's operation includes the operation of an intra-city bus line under the name "LINK" (the "Business"); and WHEREAS, Seller desires to sell to Buyer, on the terms and subject to the conditions of this Agreement, the Assets (as defined below) used by Seller in the Business, and Buyer desires to acquire the Assets, upon the terms set forth in this Agreement; NOW, THEREFORE, intending to be legally bound, the Parties agree as follows: ARTICLE I DEFINITIONS The terms defined in this Article shall have the following meanings: 1.1. "Agreement" shall have the meaning set forth in the opening paragraph of this Agreement. 1.2. "Assets" shall have the meaning set forth in Article II of this Agreement. 1.3. "Assignment of McDonald Operating Agreement" means that certain Assignment of McDonald Operating Agreement between McDonald Transit Associates, Inc., a Texas corporation ("McDonald"), and Buyer, which shall be completed, executed and delivered at Closing, and by the terms of which Seller and McDonald assign to Buyer that certain Agreement to Provide Management and Operation Services for Passenger Motor Carrier Transit System dated April 16, 2002 (as amended) between Seller and McDonald. 1.4. "Assignment of Service Marks". means that certain Assignment of Service Marks, in the form of Exhibit 1.4 attached to this Agreement and incorporated herein by reference for all purposes, and which shall be completed, executed and delivered by Seller at Closing. 1.5. "Bill Of Sale" means the bill of sale, in the form of Exhibit 1.5 attached to this Agreement and incorporated herein by reference for all purposes, and which shall be completed, executed and delivered by Seller at Closing. 1.6. "Buses" means as defined in the definition of "Vehicles" below. ASSET PURCHASE AGREEMENT - Page 1 785236.28/SP3I1314410101/091605 1.7. "Business" shall have the meaning set forth in the second recital of this Agreement. 1.8. "Business Day" means any day other than a Saturday, Sunday, or a national holiday in the U.S.A. 1.9. "Business Intellectual Property" means all of the trade secrets, processes, confidential business information, technical formulas, technology and know-how, data, designs, drawings, specifications, supplier lists, pricing and cost information, business and marketing plans and proposals, and all copies and tangible embodiments thereof (in whatever form or medium) that are primarily used in the conduct of the Business or are known by Seller to be necessary for the continued conduct of the Business by Buyer after the Closing Date. 1.10. "Buyer" shall have the meaning set forth in the opening paragraph of this Agreement. 1.11. "Buyer Documents" shall have the meaning set forth in Section 3.2 (b) of this Agreement. 1.12. "Closing" shall have the meaning set forth in Section 3.1 of this Agreement. 1.13. "Closing Date" means the date on which the Closing actually occurs pursuant to Section 3.1 of this Agreement. 1.14. "Code" means the I nternal Revenue Code of 1986, as amended, or any successor statute thereto. 1.15. "Effective Time" means the effective time of the Closing specified in Section 3.1 (b) of this Agreement. 1.16. "Equipment" means, collectively, the computers, servers, printers, scanners, fax machines, automobiles, office furniture, bus-related signs, cabinets, fixtures, telephone system, tools and equipment utilized by Seller in the Business and identified on Schedule 1.16 attached to this Agreement and incorporated herein by reference for all purposes. 1.17. "Escrow Agent" means as defined in the definition of "Escrow Agreement" below. 1.18. "Escrow Agreement" means that escrow agreement by the terms of which Seller, Buyer and American Escrow Company ("Escrow Agent") agree that the fully completed and endorsed negotiable Texas Certificates of Title to each of the Vehicles will be deposited at Closing and in accordance with the terms and conditions set forth therein will be released to the Seller or Buyer, as applicable. 1.19. "FTA" means the Federal Transit Administration of the United States Department of Transportation. ASSET PURCHASE AGREEMENT - Page 2 785236.28/SP3/13144/0101/091605 1.20. "Governmental Body" means any federal, state, local or other governmental department, commission, board, bureau, agency, instrumentality or other authority. 1.21. "Knowledge of Buyer," "Buyer's Knowledge" or any substantially similar term means to the best of Buyer's knowledge. 1.22. "Knowledge of Seller," "Seller's Knowledge" or any substantially similar term means to the best of Seller's knowledge. 1.23. "Liabilities" means any indebtedness, liability, loss, damage, deficiency or obligation, known or unknown, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise, whether or not of the kind required by accounting principles generally accepted in the United States to be set forth on a financial statement, including any liability for Taxes. 1.24. "Lien" means any lien, pledge, mortgage, security interest, claim, lease, charge, option, right of first refusal, easement, servitude, transfer restriction or any other encumbrance, restriction or limitation whatsoever. 1.25. "Losses" means any and all losses, costs, expenses, obligations, liabilities or damages, including, without limitation, court costs, reasonable attorneys' fees and disbursements. 1.26. "Master Lease Agreement" means that written lease agreement between Buyer and Seller, which is the owner of that real estate specifically described therein and commonly known as 1100 Mayhill Road, City of Denton, County of Denton, Texas (collectively, the "Real Property"). 1.27. "Other Buses" means those vehicles referenced in the definition of "Vehicles" below. 1.28. "Other Bus Transfer Instrument" means that document by the terms of which Seller conveys and transfers to Seller all of its right, title and interest to the Other Buses for the consideration therein stated. 1.29. "Person" means an individual, partnership, limited liability company, corporation, trust, unincorporated organization, association or joint venture or Governmental Body. 1.30. "Purchase Price" shall have the meaning set forth in Section 4.1 of this Agreement. 1.31. "Seller" shall have the meaning set forth in the opening paragraph of this Agreement. ASSET PURCHASE AGREEMENT - Page 3 785236.28fSP3/13144f0101/091605 1.32. "Seller Documents" shall have the meaning set forth in Section 3.2 (a) and 3.2 (d) of this Agreement. 1.33. "Shelters and Benches" means each and every pedestrian bus shelter and each pedestrian bench owned by the Seller and identified on Schedule 1.33, attached hereto and incorporated herein by reference for all purposes, on the Closing Date. 1.34. "Taxes" means any federal, state, local or foreign income, gross receipt, license, payroll, employment, excise, severance, occupation, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, estimated or other tax of any kind whatsoever, including any interest, penalty or addition thereto, whether disputed or not. 1.35. "Titles" means, collectively, the negotiable Texas Certificates of Title issued for each of the Vehicles as properly completed, executed and endorsed by Seller (and any lienholder for the purpose of the lienholder releasing its lien). 1.36. "TXDOT" means the Texas Department of Transportation. 1.37. "U.S. DOT" means the United States Department of Transportation which regulates the use of the Buses in the transportation of public passengers in the U.S.A. 1.38. "Use Agreement" means that agreement by the terms of which Seller agrees (among other things) that as to. any Business Intellectual Property owned, licensed to or otherwise utilized by Seller in or related to the Business after Closing, Seller shall provide Buyer unlimited access to and use of same for purposes of operating the Business including, without limitation, the intra-city bus line under the name "LINK" in the City of Denton, Texas to the extent Seller is permitted by contract or law. 1.39. "Vehicles" means collectively all of those vehicles identified on Schedule 1 .39 (a) attached hereto and incorporated herein by reference for all purposes (collectively, the "Buses") and each of those vehicles identified on Schedule 1.39 (b) attached hereto and incorporated herein by reference for all purposes (collectively, the "Other Buses"). ARTICLE II SALE AND PURCHASE OF CERTAIN ASSETS AND CONVEYANCE OF OTHER ASSETS 2.1. Sale of Certain Assets. On the terms and subject to the conditions stated in this Agreement, at the Closing, Seller shall sell, transfer, assign, convey and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller all of Seller's right, title and interest in and to certain of the assets of Seller used in the ASSET PURCHASE AGREEMENT - Page 4 785236.28fSP3/13144/010 1/091605 conduct of the Business (collectively, the UAssets") including each of the following: (a) the Buses identified on Schedule 1.39 (a); (b) the Equipment; (c) the Shelters and Benches; (d) any and all Governmental Body licenses, permits, certificates of authority, certificates of occupancy, authorizations, approvals, registrations, franchises and similar consents relating to the Business, to the extent assignable; (e) any Business Intellectual Property as identified on Schedule 1.9 attached hereto and incorporated herein by reference for all purposes; and (f) the Route Match Software. 2.2. Transfer of Other Buses. Further, subject to the terms and conditions of this Agreement, at the Closing, Seller shall convey and transfer to Buyer all of Seller's right, title and interest in and to each of those Other Buses listed on Schedule 1.39 (b) in consideration of Buyer's agreement (as evidenced by this Agreement) to establish, operate and maintain an intra-city bus system in the City of Denton. 2.3. UAS IS" Transfer. Buyer agrees that all of the Assets are being conveyed and transferred by Seller to Buyer in accordance herewith on an AS IS, WHERE IS basis and that Seller is not making any warranties regarding the suitability of the Vehicles or other Assets for any intended use other than those required by FTA. Further, Buyer agrees that it has examined each of the Vehicles and other Assets and accepts them in their present repaired condition. ARTICLE III CLOSING 3.1. ClosinQ Date. (a) The Closing hereunder (the "Closing") shall take place on September 30, 2005 at _.m. (the "Closing Date"). (b) The effective time of the Closing hereunder will be deemed to have occurred at 5:00 p.m. (Central time) on September 30, 2005 (the "Effective Time"). ' 3.2. Deliveries at the Closina. (a) At the Closing, Seller will deliver to Buyer the following: ASSET PURCHASE AGREEMENT - Page 5 785236.28/SP3!13144/01 01 /091605 i) the Bill Of Sale duly completed and executed by Seller and listing therein, among other things, all Assets (including, without limitation, all Vehicles and Equipment) being sold to Buyer and the Purchase Price for same as determined in accordance with Section 4.1 below; ii) the Other Bus Transfer Instrument duly completed and executed by Seller and listing therein each of the Other Buses being conveyed and transferred by Seller to Buyer in accordance with Section 2.2 above for the consideration therein stated; iii) the Assignment of Service Marks duly executed by Seller; iv) a Certificate of the City Secretary of Seller, certifying (among other things) that attached thereto are true and correct copies of each resolution or ordinance of the City Council of Seller authorizing the execution, delivery and performance of this Agreement, the Master Lease Agreement and the other related agreements and documents referenced herein and executed pursuant to or related to this Agreement; v) all contracts, agreements, commitments and rights pertaining to the Business and other. data relating to its assets, business and operation including, without limitation, all Vehicles and Equipment, except its books of account and supporting records; provided, however, atter Closing, Seller shall provide Buyer with copies of such portions of said 'books of account as Buyer may from time to time require; and vi) all applicable sales, transfer, documentary, use, filing and other taxes and fees that may be due or payable as a result of the conveyance, assignment, transfer, or delivery of the Other Buses and the Assets, property or Business to be conveyed and transferred as provided herein shall be borne by Buyer. vii) Assignment of McDonald Operating Agreement as separately consented to in writing by McDonald; viii) the unrestricted possession of each Vehicle and the other tangible Assets; ix) The entirety of Seller's unused bus pass stock; x) and: (a) such other deeds, bills of sale, endorsements, assignments, and other good and sufficient instruments of conveyance, to vest title in the Buyer to the Other Buses, the Assets, ASSET PURCHASE AGREEMENT - Page 6 785236.281SP3/1314410101/091605 property and Business being transferred to the Buyer from the Seller, free and clear of all Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a Lien granted to TXDOT), in accordance herewith, except the Titles for the Vehicles will be deposited with the Escrow Agent in accordance with Section 3.2(d) below); (b) simultaneously with such delivery, the Seller will take all such steps as may be required to put the Buyer in actual possession, operation and control of the Other Buses, the Assets, properties and Business to be transferred hereunder; xi) and such other instruments, documents or agreements that Buyer may reasonably request to carry out the transactions contemplated by this Agreement or comply with the terms of this Agreement. (b) At the Closing, Buyer will deliver to Seller: i) the Purchase Price in a form acceptable to Seller; ii) a Certificate of the Secretary of Buyer, including resolutions of the Board of Directors, authorizing the execution, delivery and performance of this Agreement and the related agreements and documents; iii) such other instruments, documents or agreements as Seller may reasonably request to carry out the transactions contemplated by this Agreement and to comply with the terms of this Agreement. (c) At the Closing, Seller and Buyer shall mutually complete, execute and deliver to the other party each of the following: i) the Master Lease Agr~ement; ii) the Use Agreement; and Hi) the Escrow Agreement; (d) At the Closing, Seller shall deliver to the Escrow Agent: i) the original negotiable Texas Certificates of Title for each of the Vehicles, completed and properly executed and endorsed by the Seller (and lienholder .for the purpose of releasing its lien) and free and clear of any Liens, encumbrances or restrictions (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794), which is subject to a TXDOT Lien); ASSET PURCHASE AGREEMENT - Page 7 785236. 28/SP3/13144/01 01/091605 (e) From time to time after the Closing, at the request of the Buyer, the Seller will execute and deliver to the Buyer such other instruments of conveyance and transfer or any other instruments, documents or agreements and take such other action as the Buyer may reasonably require to more effectively convey, transfer to, vest all of Seller's right, title and interest in, and to put the Buyer in possession of, any of the properties, the Other Buses or the Assets to be conveyed, transferred and delivered to the Buyer hereunder or to carry out the transactions contemplated by the Agreement or to comply with the terms of this Agreement. ARTICLE IV PURCHASE PRICE 4.1. Purchase Price. The Purchase Price payable to Seller by Buyer as consideration for the sale, transfer, conveyance and assignment of the Assets (the "Purchase Price") shall be: (a) Two Hundred Thirty Three Thousand Dollars ($233,000). ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby represents and warrants to Buyer as follows: 5.1. Oraanization. Seller is a Texas home rule municipal corporation duly incorporated and chartered and validly existing under the laws of the State of Texas and has all requisite right, power and authority to own, lease and operate all of its properties and assets used in the Business and to carry out the Business as it is presently conducted. 5.2. Authoritv: Consents and Approvals. Seller has all requisite right, power and authority to execute, deliver and perform this Agreement and each other document and agreement referenced in this Agreement or to be executed and delivered by Seller pursuant to this Agreement (together, the "Seller Documents"). The execution, delivery, and performance of the Seller Documents by Seller has been duly and validly authorized and approved by all necessary actions of its City Council. This Agreement constitutes a valid and legally binding obligation of Seller, and the execution, delivery and performance of the Seller Documents by Seller will not violate Seller's Charter or applicable ordinances, as each is amended to the date of this Agreement, or (a) violate in any material respect any applicable provision of law or any rule or regulation of any Governmental Body or any order, writ, injunction, judgment or decree of any court, administrative agency or Governmental Body, (b) require any consent under or constitute a default under any material agreement, indenture, mortgage, deed of trust, lease, or other instrument to which Seller is a party or by which it is bound, or any license, permit or certificate held by it, or (c) result in the creation of any Lien upon any of the Assets or the Other Buses. ASSET PURCHASE AGREEMENT - Page 8 785236.28/SP3/13144/0101/091605 5.3. Title to Assets and Other Buses. At Closing, Seller will have the full right and power to convey and will convey to Buyer, effective as of the Effective Time, all of its right, title and interest to the Assets and the Other Buses, free and clear of any and all Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a TXDOT Lien) except that the Titles will be deposited with the Escrow Agent in accordance with Section 3.2(d). 5.4. No Iniunctions or Orders. Except for the approval of the FTA as is required by Article 8.5 below for the transfer of the Other Buses and the sale of the Buses, there are no other necessary governmental consents, approvals or filings necessary for the conveyance and transfer of the Other Buses or the sale of the Assets by Seller. Seller is not subject to and, to Seller's Knowledge, has not been threatened with any injunctions of any court or orders of any federal, state or municipal court or Governmental Body, which would limit or otherwise adversely affect Seller's ability to convey and transfer the Other Buses or sell the Assets or to conduct the Business substantially as it is currently conducted by Seller. 5.5. Compliance with Laws. Seller has complied in all material respects with all federal, state and local laws and regulations applicable to the Other Buses and the Assets and the Business. 5.6. Contracts. Seller represents that the contracts or agreements listed on Schedule 5.6, attached hereto and incorporated herein by reference for all purposes, are the only contracts or ,agreements Seller has entered into which are in effect and may create a liability for Buyer. 5.7. Brokers. No agent, broker, investment banker or other Person acting on behalf of Seller or under its authority is or will be entitled to any broker's or finder's fee or any other commission or similar fee, directly or indirectly, in connection with the transactions contemplated by this Agreement for which Buyer will be liable. 5.8. Patent or Trademark Claims. The Seller has no knowledge of any claim or reason to believe that it is or may.be infringing or otherwise acting adversely to the rights of any Person under or in respect of any patent, trademark, service mark, trade name, copyright, license, franchise, or other similar intangible right. The Seller is not obligated or under any liability whatever to make any payments by way of royalties, fees or otherwise to any owner or licensee of or other claimant to any patent, trademark, trade name, copyright, franchise, or other intangible asset with respect to the use thereof or in connection with the conduct of the Business or otherwise. 5.9. Valid Representations and Warranties. No representation or warranty by the Seller in this Agreement or in any writing required hereunder or related hereto, contains or will contain any untrue statements of material fact or omits or will omit to state any material fact required to make the statements herein or therein contained not misleading. ASSET PURCHASE AGREEMENT - Page 9 785236.28/SP3/13144/0101/091605 5.10. No Taxes Due. The Seller has filed all federal and state withholding and employment tax returns and paid all taxes that are now due and payable or will be due and payable as of the date of the Closing. 5.11. No Liens. All of the Other Buses and the Assets are being transferred free and clear of any indebtedness or Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a TXDOT Lien), and there are no tax or judgment liens against Seller or the Business to be transferred, except (a) for the approval of the FTA as is required by Article 7.5 below for the transfer of the Other Buses and the sale of the Buses, and (b) the Titles to the Vehicles are being d~posited at Closing with the Escrow Agent in accordance with Section 3.2(d). 5.12. Prudent Business Operation. Seller will continue until the Effective Time on Closing Date to operate the Business in a reasonable and prudent manner. 5.13. Litiaation. Seller is not a party to, nor has any knowledge of any threat of, any litigation in which any Asset of Seller being sold to Buyer hereunder or any Other Bus being conveyed and transferred by Seller hereunder is the subject of any such litigation or is affected by or could be affected by any such existing or threatened litigation. ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER Buyer hereby represents and warrants to Seller as follows: 6.1. Oraanization. Buyer is a political subdivision of the State of Texas and a coordinated county transportation authority created pursuant to Chapter 460, Texas Transportation Code, validly existing under the laws of the State of Texas and has the full right, power and authority to own, lease and operate the Assets and the Business in the State of Texas. 6.2. Authority. Consents and Approvals. Buyer has all requisite, necessary and appropriate power and authority to execute, deliver and perform this Agreement and each other document and agreement referenced in this Agreement or to be executed and delivered by Buyer: pursuant to this Agreement (together, the "Buyer Documents"). The execution, delivery and performance of the Buyer Documents by Buyer have been duly and validly authorized and approved by the governing body of the Buyer. 6.3. No Iniunctions or Orders. Buyer is not engaged in, nor is there pending or, to Buyer's Knowledge, threatened, any action, dispute, claim, litigation, arbitration, investigation or other proceeding at law or in equity or before any Governmental Body or other administrative agency nor are there any injunctions of any court or orders of any federal, state or municipal court or Governmental Body which could adversely affect Buyer's ability to perform any of its obligations under this Agreement or the transactions cont~mplated by this Agreement. ASSET PURCHASE AGREEMENT - Page 10 785236.28/SP3/13144/0101/091605 6.4. Litiaation. There is no pending or, to Buyer's Knowledge, threatened litigation against Buyer that would inhibit Buyer's ability to consummate the transactions contemplated by this Agreement. 6.5. Brokers. No agent, broker, investment banker or other Person acting on behalf of Buyer or under its authority is or will be entitled to any broker's or finder's fee or any other commission or similar fee, directly or indirectly, in connection with the transactions contemplated by this Agreement for which Seller will be liable. ARTICLE VII FURTHER AGREEMENTS 7.1. Additional Actions bY Seller and BuYer. After the Closing, Seller and Buyer shall execute and deliver such documents and do and perform all such other acts as may reasonably be required by the other in order to consummate the transactions described in this Agreement. 7.2. Announcements. The Parties will mutually agree as to the time, form and content before issuing any press releases or otherwise making any public statements or statements to third parties with respect to transactions contemplated by this Agreement, except as may be required by law. 7.3. Transaction Costs. Each of Seller and Buyer shall be responsible for the payment of its own costs and expenses incurred in connection with this Agreement (including, without limitation, any attorneys' fees incurred by its counsel) and the transactions contemplated by this Agreement. 7.4. Fire and Casualty. Subject to the terms and conditions hereof, the Seller assumes all risk of destruction, loss, or damage of any Asset and each of the Other Buses being transferred hereunder due to fire or other casualty up to the Effective Time. Upon said destruction, loss or damage due to fire or other casualty of a substantial portion of the Assets or the Other Buses or the building or buildings in which they are located, the Buyer shall have the option to terminate this Agreement and, in the event of the exercise of such option, all rights of the Buyer and the Seller shall terminate without liability to any party. The Buyer shall notify the Seller within five (5) days after receiving written notice of said destruction, loss or damagedue to fire or other casualty, of its decision to terminate this Agreement. If the Buyer does not timely notify the Seller of termination, this Agreement shaU remain in full force and effect, provided, however, the Purchase Price shall be adjusted at Closing to reflect such destruction, loss, or damage and ,.if the Buyer and Seller are unable to agree upon the amount of adjustment; the dispute shall be determined by an independent appraiser agreed to by Buyer and Seller and such determination shall be binding upon both the Buy~r and the Seller herein: however, on or after the Effective Time the Buyer assumes all risk of destruction, loss or damage of the Assets and the Other Buses being transferred hereunder due to fire or other casualty subject to Section 3.2 (a)(x). ASSET PURCHASE AGREEMENT - Page 11 785236.28/SP3/13144/01 01 /091605 . 7.5. FTA Approval. As in accordance with Section 3.2(d) above, at Closing, the Titles shall be deposited with the Escrow Agent to be held by and then released by the Escrow Agent to the Buyer in accordance with the terms and conditions of the Escrow Agreement upon Seller receiving FT A approval to transfer the Vehicles to the Buyer and promptly executing and delivering to the Escrow Agent the Statement of FTA Approval By the City of Denton, Texas (Exhibit B to the Escrow Agreement) and upon Buyer receiving FTA approval to receive the Vehicles from the Seller and promptly executing and delivering to the Escrow Agent the Statement of FTA Approval By Denton County Transportation Authority (Exhibit C to the Escrow Agreement), as contemplated herein. However, the Seller and Buyer further agree if the FTA has not approved the sale of the Assets by the Seller to the Buyer and the conveyance and transfer of the Other Buses by the Seller to the Buyer as contemplated in this Agreement by close of business on March 31, 2006, the Seller and Buyer shall immediately commence the good faith negotiation of the terms and conditions of an operating lease of all of the Vehicles by the Seller to Buyer for the purpose of the Buyer's unlimited use of the Vehicles in the establishment, operation and maintenance of an intra-city bus line in the City of Denton and such terms and conditions (among others) of such operating lease shall include, without limitation, each of the following: (a) the Purchase Price shall be deemed by Seller and Buyer to be the full and complete rental to be paid by Buyer and Seller under such operating lease and therefore Buyer shall not have any other or additional rental obligation under the operating lease beyond the Purchase Price as paid at Closing; and (b) the term of the operating lease shall have a scheduled expiration date of April 30,2010. Further, Seller and Buyer agree th13t such operating lease shall be executed by Seller and Buyer by no later than close of business on May 31, 2006 unless such date shall be extended in writing by Seller and Buyer that shall provide for interim operation by the Buyer. ARTlClE VIII MISCEL.lANEOUS 8.1. Entire Understandina. Waiver. Etc. This Agreement (including all schedules and exhibits attached to this Agreement) and all other agreements executed and delivered at the Closing set forth .the entire understanding of the Parties and supersede any and all prior; or contemporaneous agreements and understandings relating to the slJbject matter of this Agreement, and the provisions hereof may not be changed, modified, waived or altered except by an agreement in writing signed by the Parties to this Agreement. A waiver by any Party of any of the terms or conditions of this Agreement, or of any breach thereof, shall not be deemed a waiver of such term or condition for the future, or ASSET PURCHASE AGREEMENT - Page 12 785236.28/SP3/13144/0101/091605 of any other term or condition of this Agreement, or of any subsequent breach thereof. 8.2. Severabilitv. If any provision of this Agreement or the application of such provision shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. 8.3. Accountina Terms. All accounting terms not specifically defined in this Agreement shall have the meanings given to them under accounting principles generally accepted in the United States. 8.4. Notices. All notices, requests, demands and other communications that are required or may be given under this Agre~ment shall be in writing. All notices shall be deemed to have been duly given or made: if by hand, immediately upon delivery; if by Federal Express, Express Mail or any other reputable overnight delivery service, one Business Day. after being placed in the control of the courier for overnight delivery; and if mailed by certified mail, return receipt requested, five Business Days after mailing.. All notices are to be given or made to the parties at the following addresses (or to such other address as either Party may designate by notice in accordance with the provisions of this Section): (a) If to Seller: City of Denton Jon Fortune Assistant City Manager 215 E. McKinney Denton, Texas 76201 Facsimile: (940) 349-8596 jon. fortune@cityofdenton.com (b) If to Buyer: Denton County Transportation Authority John Hedrick, Executive Director 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 Facsimile: (972) 221-4601 jhedrick@dcta.net With a copy to: Rider Scott, Esq. Strasburger & Price, LLP 2801 Network Boulevard, Suite 600 Frisco, TX 75034 ASSET PURCHASE AGREEMENT - Page 13 785236.28JSP3f1314410 10 1/091605 I 8.5. 8.6. 8.7. 8.8. 8.9. 8.10. Successors and Assians. Neither this Agreement nor any of the rights or obligations arising under this Agreement shall be assignable without the prior written consent of the Parties to this Agreement. Nothing in this Agreement, express or implied, shall confer upon any Person, other than the Parties to this Agreement, and their successors and permitted assigns, any rights or remedies under or by reason of this Agreement. Waivers. At any time prior to the Closing, any Party to this Agreement may (i) extend the time for the performance of any of the obligations or other acts of the other Party to this Agreement, (ii) waive any inaccuracies in the representations and warranties of the other Party contained in this Agreement or in any document delivered pursuant to this Agreement, and (iii) waive compliance with any of the agreements or conditions contained in this Agreement subject to any specific provisions governing the effect of such extensions or waivers. Any agreement on the part of a Party to this Agreement to grant any such extension or waiver will be valid only if set forth in a written instrument signed on behalf of such Party. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Attorneys' Fees and Costs. Unless otherwise provided in this Agreement to the contrary, in the event any action or proceeding is commenced by any party to this Agreement to determine rights, duties or obligations under this Agreement, determine a breach of this Agreement and obtain damages as a result of such breach or otherwise enforce this Agreement, the prevailing party in such action or proceeding shall be entitled to recover from the non-prevailing party all of the prevailing party's out-of-pocket costs and expenses, including all reasonable attorneys' fees, disbursements and related charges. Headings. The headings contained in this Agreement are for the sole purpose of convenience of reference, and will not in any way limit or affect the meaning or interpretation of any of the terms or'provisions of this Agreement. Governina Law. THIS AGREEMENT SHALL BE CONTROLLED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. (Remainder of Page Intentionally Left Blank-. Signatures Follow) ASSET PURCHASE AGREEMENT - Page 14 785236.2BfSP3f13144fO 10 1f091605 IN WITNESS WHEREOF, this Agreement has been executed by duly authorized officers of each of the Parties all as of the date first above written. ATTEST: JENNIFER WALTERS CITY SECRETARY SELLER: CITY OF DENTON, TEXAS By: Name: Euline Brock Title: Mayor By: ATTEST: DENTON COUNTY TRANSPORTATION AUTHORITY BUYER: DENTON COUNTY TRANSPORTATION AUTHORITY By: Jason Pearce, Secretary By: Name: Charles Emery Title: Chairman ASSET PURCHASE AGREEMENT - Page 15 765236.28/SP3l1314410 10 1/091605 EXHIBIT 1.4 TO ASSET PURCHASE AGREEMENT ASSIGNMENT OF SERVICE MARKS For and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, of which receipt is acknowledged, the CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city (" Assignor"), owner of the entire right, title and interest in the service marks identified on Appendix A attached hereto and incorporated herein for all purposes hereby sells and assigns to DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision, and a coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Assignee"), its entire right, title and interest in the service marks identified on Appendix A along with all good will associated therewith, to be held and enjoyed by the Assignee, its successors, and assigns, as fully and entirely as the same would have been held and enjoyed by the Assignor had this assignment and sale not been made. In testimony whereof, the Assignor has caused this Assignment of Service Marks to be signed by its duly authorized officer( s) this day of , 2005. ASSIGNOR: CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR ATTEST: JENNIFER WAL TERS CITY SECRETARY By: EXHIBIT 1A TO ASSET PURCHASE AGREEMENT- Assianment of Service Marks 786028.21SP&'13144101011091805 APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY , By: STATE OF TEXAS 9 9 COUNTY OF DENTON 9 This instrument was acknowledged before me on the day of 2005, by Euline Brock. Mayor of the City of Denton. Texas, known or proved to me on satisfactory evidence to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed and in the capacity therein stated, on behalf of such municipal corporation. Notary Public, State of Texas [SEAL] My Commission Expires: EXHIBIT 1.4 TO ASSET PURCHASE AGREEMENT- Assianment of Service Marks 786028.2/SP3f13144101 011091605 ApDendlx A to Assianment of Service Marks APPENDIX A TO ASSIGNMENT OF SERVICE MARKS 78602B.2ISP3I13144101 011091605 l:t (I) <IJ U o -- .Q.. o +-J ([) -- Q.. o Q) .0.. b.O c: -- ~ c: -- -- ::: EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT BILL OF SALE THIS BILL OF SALE is made as of September 30, 2005, by the CITY OF DENTON, Texas, a Texas municipal corporation and home rule city("Seller"). WIT N E SSE T H: WHEREAS, the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authoritycreated pursuant to Chapter 460, Tex. Transportation Code ("Buyer") and Seller entered into that certain Asset Purchase Agreement dated as of September 30, 2005 (the "Purchase Agreement") providing, among other things, for the sale bySeller to Buyer of the Assets (as defined in the Purchase Agreement and WHEREAS, in order to effectuate the sale and purchase of the Assets as aforesaid, Seller is executing and delivering this Bill of Sale; NOW THEREFORE, in consideration of the premises, the consideration paid pursuant to the Purchase Agreement, the mutual covenants and agreements contained in the Purchase Agreement and other good and valuable consideration, the receipt ad sufficiency of which are hereby acknowledged, Seller hereby SELLS, ASSIGNS, TRANSFERS, SETS OVER AND DELIVERS, and has hereby SOLD, ASSIGNED, TRANSFERRED, SET OVER AND DELIVERED to Buyer, its successors and assigns, all of its right, title, and interestin and to and under all of the Assets (as defined in the Purchase Agreement) including, without limitation, each of the following(all capitalized terms not herein defined shall have the meaning set forth in the Purchase Agreement~ (a) the Buses; (b) the Equipment; (c) the Shelters and Benches; (d) the use and operation of the Business; (e) the Business Intellectual Property identified on Schedule 1.9 of the Purchase Agreement (f) All of Seller's right, title and interest in and to the Route Match Softvare, as further described in Exhibit A. (g) Customer Data. All of the books, lists, and records of the Seller containing data or information of any kind relating to (i) the customers of the Business as conducted by the Seller with the Assets, and (ii) the Assets. (h) Intangible Assets. All right, title and interest of Seller in, to and under the name "L1 NK" and any derivatives of such nam~ any service marks, labels, logos, copyrights, designs, rights to telephone numbers and all listings pertaining to Seller in all telephone books and other directories pertaining to the Business, internet domain names, web sites created by, licensed by and/or used bySeller in their operation of the business, and any registrations or applications for registrations of theforegoing used in the conduct of the Business, and any right to recovery for infringement thereof (including past infringement) and any and all goodwill associated therewith or connected with the use thereof and symbolized thereby. (i) Goodwill. The. goodwill and going concern value of the Business conducted by the Seller. U) Licenses and Permits. Any and all Governmental Body licenses, permits, certificates of authority, certificates of occupancy, authorizations, approvals, registrations, franchises am similar consents, to the extent assignabl~ owned or used EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT. Bill of Sale - Page 2 785876.10ISP3/13144101011091605 by Seller in the operation ofthe Business, whether issued by any Governmental Body or any other Person. For purposes of this paragraph and this Bill of Sale generally, the following terms have the following meanings: "Applicable Law": All applicable provisions (domestic or foreign) of all (i) constitutions, treaties, statutes, laws (including the common law), rules, regulations, ordinances, codes and Orders of or with any Governmental Body and (ii) Governmental Approvals. "Consenf': Any consent, approval, authorization, action, waiver, permit, grant, franchise, concession, agreement, license, exemption or Order of, registration, certificate, declaration or filing with, or report or notice to, my Person (including foreign Persons), including any Governmental Body. "Governmental Approvaf': Any Consent of, from or with any Governmental Body. "Governmental Body": Any court or any federal, state, municipal or other governmental department, commisson, board, bureau, agency, authority or instrumentality, domestic or foreign. "Order": Any order, writ, injunction, directive, decree, judgment, award, restriction, decision or determination of, or agreement with, any Governmental Body. "Permits": All permits, authorizations, qualifications, certificates, consents, approvals, registrations, variances, exemptions, rightsof~way, franchises, privileges, immunities, grants, ordinances, licenses, waivers and other rights of every kind and character (a) under any (i) Applicable Law, (ii) Order or (iii) contract with any Governmental Body, or (b) granted by any Governmental Body. "Person": An individual, partnership, joint venture, corporation, company, limited liability company, bank, trust, unincorporated oganization, Governmental Body or other entity or group. (k) Claims. All of Seller' rights, claims and causes of action relating to the Assets or the Business. (I) Other Assets. Each of the other Assets listed on Exhibit A attached hereto and incorporated herein by reference for all purposes. Seller and its successors and assigns, further covenants and agrees that Seller will do or cause to be done all such further acts and things and will execute, EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 3 785876.10/SP3/13144/01011091605 acknowledge and deliver, or will cause to be executed, acklOwledged and delivered, any and all such further transfers, conveyances, instruments, powers of attorney and assurances as the Buyer may reasonably require for the better assuring, assigning, transferring and conveying to the Buyer, its successors and assigns, on the terms stated in the Purchase Agreement and herein, all and singular the Assets. As between Seller and Buyer, this Bill of Sale and the Purchase Agreement and any and all other instruments, documents or agreements executed or delivered in accordance with the terms and conditions of the Purchase Agreementconstitute the entire agreement, and supersede all other prior agreements or understandings, whether written or oral, with respect to the subject matter hereof. THIS AGREEMENT SHALL BE CONTRa.LED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. SELLER MAKES NO REPRESENTATIONS WITH REGARD TO THE ASSETS, AND BUYER ACCEPTS THE ASSETS "AS IS, WHERE IS," WITH ALL FAULTS. Nothing contained in this Bill of Sale, express or implied, is intended to confer upon any Person not a party to the Purchase Agreemert any rights or remedies of any nature whatsoever under or by reason of thisBiII of Sale or the Purchase Agreement or any document, instrument, or Agreement referenced therein or executed and delivered pursuant to the terms of the Purchase Agreement EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT. Bill of Sale - Page 4 785876.1 o/sP3/131441010 11091605 IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of the Effective Date. SELLER: CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR ATTEST: JENNIFER WALTERS CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY By: EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 5 765676.10/SP3/13144101011091605 Exhibit "A" to Bill of Sale Route Match Software Description RouteMatch Software RouteMatch Software Version SR239C- 4 licensed users Contract No. CITDEN 152 Windows 2003 for PowerEdge 1000 Server Other Software Software to remain on four Dell Computers: Microsoft Windows XP, Microsoft Office 2000, Citrix Client and Real Player EXHIBIT "A" to Bill of Sale 785876.10/SP3/1314410101/091605 I I . ~hlbit 1.16 to Asset Purchase Agreement i J~m Description Vehicle Identification Number F rd Crown-Victory 2FALP71W4SX174474 F rei Crown-Victory 2FALP71W2VX158262 ncrete slabs for benches & shelters ght Solar power light and Information Display Systems s Shelters B ie System and Inventory Module ~ Software T Dell MFP 1600n PrInters T Dell Computers -Small Minitower Pentium T 0 Delllatilude Laptops odel 5400 Shop Roor Scrubber L NKS Bus Ufts (Hydraulic Repair Lifts) T n Benches wfth Backrest S gns ~ LINK buses S gns - LINK buses logos & ~ping S gns ~ LINK buses decals T 0 Panasonlc Toughbook Computers F ur Workstations ne Dell Computer PowerEdge N !Work Switch R utematch Software H Laser: Printer HPB150 H Color Laser Printer HP4550 H Scan Jet Scanner . H Fax 1020 S n Coin Sorter L ft Pedestal Desk T File Cabinets cretary.Desk S cretary Desk okcase C air R admaster Bec Utility Vehicle (Taylor Dunn) ~ ortel Ootion llC Phone System and Cisco Switch with 10 Phone Des'k Sets Page: 1 SCHEDULE 1.9 TO ASSET PURCHASE AGREEMENT' Business Intellectual Property RouteMatch Software RouteMatch Software Version SR239C - 4 licensed users Contract No. CITDEN 152 Windows 2003 for PowerEdge 1800 SelVer Other Software Software to remain on four Dell Computers: Microsoft Windows XP, Microsoft Office 2000, Citrix Client and Real Player SCHEDULE 1.9 TO ASSET PURCHASE AGREEMENT Business Intellectual Property 787545.1JSP3f13144101011ll91605 " SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT' .' .' ........... , Shelters an.d Benches Passauger .Amen:ftYLocationi' Lqcation CityBenc1l City XDB Rench ~eatTeam UNT Shelter . She1tm: I.JNK Cemral XXXX :x:x 100 Block om . Biakatv Bmi1yPow~ , ~. Libraty X # . ! to 500 Block of Oakland 10JQ6 & . " ~ Gan'lenvciw X , . ! . 3500 Block of Joyce . Odo1.e &Loop .. 288 ... X 'j- . 3600 :Block of .I...: <' orlole . MRT1rAf: & Loop " . ~~ 288 . X 3800 Block of . Mmbt Street I Bell @Peaoh ~. X 1=- . 2400 Block of ' .;g, :aWl . Co1omdo @ Target -. X 2300 Bloo1c of II CoIamdo .~'C!' AVQDI1e 0 @I- , SSE (S1Co'D.- Save) : X 1000 Block of Avenne C Teasley@. PamilyDodoD . :x: . 1500 BlOck of - ,. Teas1w i , :&v.in@ DaDia . " R.=ma:fian Or. X '1000 .Bloclc of Parvin Omrlotte @ I Avm:me G X .2 500 Bloclt of Cha:l:1otte -- SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT - Shelters and Benches - Page 1 187316.11SP3J13144f01 0110911105 . -. ' .. .. . .. ~ Locatlon City Bench City DB Bench Sweat Team 1JNT Shelter Shelter BmmiBBrae & Charl.otte X 2400 Block: of CfJ.arlotte w. Bicikoty & AvamJ8 C X 1700 Block of w. UNT Student Union : X 400 Block of Avenue A W. Oak@ X Cmroll 300 Block ofW. Oak Hicko1y@ Ra:i1road X 600 Block olE. I WiJson@~ X Recreldion Ctr. 1300 Block of Wilson Ruddell @B. X BickoIy 300 Block of ,Ruddell Botmia Brae @ Danton eo. t1 I III {n:.-ffy Hospital X 200BlockofS. Bonnie Brae Mingo @ Village East.Apts. ! X 1700 J310ck of M"mr,-n "RDad Crescent @ Malane' X 1400 Block of CrescmtRoad :Elm @ Seccmd X 1200 Bloclt of Elm Street I SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT- Shelters and Benches - Paae 2 787318. t1SP3I131441l11011091B05 , ~. " -' .,.. .. t~ Loea:tiDn City Bendt" City KDB Bench Sweat Team UNT Shelter Shelter Dallas Drive @ Smith X 300 Block of Dallas Drive RuddeIl @ Phmmix Apts. X 300 Block of Rndda1l BeD. @ Sanior , Cem:er X 200 Block of Be11AWDlle Total: 30 . . SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT - Shelters and Benches - Paae 3 787316.1/SP3113144101011091805 SChe~Ule 1.39(a}to Asset Purchase Agreement Br I ~ D~ 1 87 Flxible Diesel Bus 1 87 Flxible Diesel Bus E CORT RE Propane 30ft Bus E CORT RE Propane 30ft Bus E CORT RE Propane 30ft Bus E CORT RE Propane 30ft Bus C JJ Propane 25ft Paratranslt Bus C II Propane 25ft Paratranslt Bus 2 00 Goshen SENTRY Bus 2 00 Goshen SENTRY Bus 2 00 Goshen SENTRY Bus 2 00 Goshen SENTRY Bus e following assets are not in working order: 1 87 Flxlble Diesel Bus 1 87 Flxlble DIesel Bus 1 87 Flxible Diesel Bus 1 87 Flxlble Diesel Bus Page: 1 License Number 845-952 845-954 828-019 851-184 851-185 851-186 851-182 853-172 806-442 806-211 806-441 806-443 845-953 845-955 845-956 845-957 Vehicle Unit Number 8701 8703 275 335 336 337 330 331 197 199 196 198 8702 8704 9001 9002 Vehicle Identification Number 1 GF5CAFKXHD098862 1 GF5CAFKOHD098885 1 N9RBABG92C084143 1 N9EBABG63C084117 1 N9EBABG43C084116 1 N9EBABG33C084124 1 FDXE45S23HA62793 1 FDXE45S43HA62794 4UZAACBV81 CJ40370 4U~CBV41CJ25767 1 FDVVE35F21HB00441 1 FDVVE35F41HB00448 1 GF5CAFK4HD098890 1 GF5CAFK3HD098864 1 GF5CAFK6LD1 01 006 1GF5CAFK1HD101003 $chedule 1.39(b) to Asset Purchase Agreement Other Buses Description License Number' 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 879-212 879-213 879-214 879-215 879-216 879-217 879-218 879-219 879-220 879-221 879-222 879-223 879-224 879-225 879-226 Page: 1 Vehicle Unit Number 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 Vehicle Identification Number 4UZAACBV21 CH72803 4UZAACBV91 CH72801 4UZAACBV31 CH72809 4UZAACBV81CH72806 4UZAACBV81 CH72823 4UZAACBV91CH72815 4UZAACBV91CH72832 4UZAACBVX1 CH72824 4UZAACBVX1CH72838 4UZAACBV91 CH72846 4UZMCBV01 CH72833 4UZMCBV91CH72829 4UZAACBV11CH72839 4UZAACBV81 CH72840 4UZAACBVX1 CH72841 SCHEDULE 5.6 TO ASSET PURCHASE AGREEMENT Contracts Agreement to Provide Management and Operation Services for Passenger Motor Carrier Transit System dated April 16, 2002 (as amended) between City of Denton, Texas and McDonald Transit Associates, Inc. SCHEDULE 5.6 TO ASSET PURCHASE AGREEMENT Contracts 787546.1ISP3I13144J01G11091505 ESCROW AGREEMENT THIS AGREEMENT, made this 30th day of September, 2005, among the City'of" Denton, Texas, a Texas municipal corporation and home rule city ("Seller"), the Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuant to Chapter 469, Tex. Transportation Code ("Buyer), American Escrow Company, a Texas corporation, having its principal place of business at 2626 Howell, 10th Floor, Dallas, Texas 75204, Attn: Carla Janousek, 214- 855-8879 (hereinafter referred to as "Escrow Agent"), WITNESSETH THAT: WHEREAS, the Seller and Buyer entered into that certain Asset Purchase Agreement (the "Purchase Agreement") dated September 30, 2005, wherein Seller agreed to sell the Buses (as defined in the Purchase Agreement) and certain other assets and agreed to convey and transfer the Other Buses (as defined in the Purchase Agreement), to Buyer described therein (collectively, the "Assets"); and WHEREAS, Seller has deposited the Titles (as defined in the Purchase Agreement) to the Vehicles with Escrow Agent. NOW THEREFORE, the parties hereto agrees as follows: Escrow Agent shall open and maintain an escrow account in the name of Buyer and Seller and hold in such account each of the Titles to the Vehicles listed on Exhibit NAn attached hereto and incorporated herein by reference for all purposes. Upon receipt by the Escrow Agent of an executed copy of the Statement of FTA Approval By the City of Denton, Texas, in the form of Exhibit "B" attached hereto and incorporated herein by reference for all purposes, by close of business on March 31, 2006, and the Statement of FTA Approval By the Denton County Transportation 'Authority, in the form of Exhibit "c" attached hereto and incorporated herein by reference for all purposes, Escrow Agent shall immediately deliver the Titles to the Buyer and, upon doing so, shall not have any further obligation hereunder. However, in the event the Escrow Agent does not receive an executed copy of Exhibit 8 and Exhibit C by close of business on March 31, 2006. Escrow Agent shall promptly deliver the Titles to the Seller and, upon doing so, shall not have any further obligation. hereunder. Buyer shall pay the full cost of the escrow established with Escrow Agent. Escrow Agent is not a party to, or bound by any agreement which may be deposited under, evidenced by, or which arises out of the foregoing instructions. Escrow Agent acts hereunder as a depository only and is not responsible or liable in any manner whatever for the sufficiency, correctness, genuineness or validity of any instrument deposited with it hereunder, or with respect to the form or execution of 1 786880.71SPa113144101 011081605 same; or the identity, authority, or rights of any person executing or depositing the same. The parties hereto further agree that Escrow Agent assumes no liability for and is expressly released from any claim or claims whatsoever in connection with the receiving, retaining and delivering of the above Titles except to account for delivery made thereof as required above. Deposit by Escrow Agent of the instruments comprising this escrow in Court, shall relieve Escrow Agent of all further responsibility and liability, and Escrow Agent is hereby expressly authorized to disregard in its soJe discretion any and all notices or warnings given by any of the parties hereto, or by any other person or corporation, but the said Escrow Agent is hereby expressly authorized to regard and to comply with and obey any and all Orders, Judgments or Decrees entered or issued by any Court with or without jurisdiction, and in case Escrow Agent obeys or complies with any such Order, Judgment or Decree of any Court it shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such Order, Judgment or Decree be entered without jurisdiction or be subsequently reversed, modified, annulled, set aside or vacated. In case of any suit or proceeding regarding this escrow to which Escrow Agent is or may be at any time a party, it shall have a lien on the contents hereof for any and all cost, attorneys' fees, whether such attorneys shall be regularly retained or specially employed and other expenses which it may have incurred or become liable for on account thereof, and it shall be entitled to reimburse itself therefore out of said deposit, and the undersigned jointly and severally agree to indemnify and hold harmless Escrow Agent from all loss, costs or damages incurred, including but not limited to attorneys' fees, by reason of this Agreement or the subject matter hereof or any cause of action which may be filed in connection therewith and to pay Escrow Agent, upon demand all such costs, fees and expenses so incurred. Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, except its own gross negligence or willful misconduct, and Escrow Agent shall have no duties to anyone except those signing this instrument. Escrow Agent may consult with legal counsel in the event of any dispute or questions as to the construction of the foregoing instructions, or Escrow Agent's duties hereunder, and Escrow Agent shall incur no liability and shall be fully protected in acting in accordance with the opinion and instructions or such counsel. Escrow Agent shall not have any liability due to any of the parties, other than Escrow Agent, filing for bankruptcy or the consequences or effect of such a bankruptcy on the documents deposited hereunder. [Remainder of Page Intentionally Left Blank] 2 786880. 7/SP3I13144101 011091605 EXECUTED as of the day and year first above written:' . Seller: Buyer: Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 The City of Denton 215 E. McKinney Denton, Texas 76201 By: Name: Euline Brock Title: Mayor By: Name: Charles Emery Title: Chairman Escrow Agent , Escrow Agent herein, hereby acknowledges receipt of the aforementioned Titles and agrees to act as Escrow Agent herein pursuant to the terms of this Agreement, dated this day of , 2005. Escrow Agent: BY: NAME: TITLE: 3 786880. 7/SP3l131<1410101 f091605 DescrIption 1 1 Flxlble Diesel Bus 1 87 Fbdble Diesel Bus E CORT RE Propane 30ft Bus E CORT RE propane 30ft Bus E CORT RE propane 30ft Bus E RT R.... r-ropane 30ft Bus C II Propane 25ft Paratransit Bus II Propane 25ft Paratranslt Bus Goshen SENTRY Bus Goshen SENTRY Bus 2 Go~~hen SENTRY Bus 2 00 Goshen SENTRY Bus 987 Flxible Diesel Bus 987 Flxible Diesel Bus 987 Fbdble Diesel Bus 987 FbdbIe Diesel Bus EXHIBIT A to Escrow Agreement Ucense Number ~2 845-954 828-019 851-184 851.185 851-186 851-182 853--172 806442 806-211 806-441 806-443 845-953 845-955 845-956 845-957 Vehicle Unit Number 8701 8703 275 335 336 337 330 331 197 199 196 198 8702 8704 9001 9002 Vehicle IdentJftcation ,Number 1GF5CAFKXHOO98862 1 GF5CAFKOHD098885 1 N9RBA8G92C084143 1 N9EBABG63C084117 1N9EBABG43C084116 1 N9EBABG33C084124 1 FDXE45S23HA62793 1FDXE45S43HA62794 4UZAACBV81CJ40370 . 4UZAACBV41CJ25767 1 FDWE35F21 HB00447 1 FDWE35F41HBOO448 1GF5CAFK4HD098890 1 GF5CAFK3HD098864 1GF5CAFK6lD101006 1 GF5CAFK1 HD1 01 003 2001 Champion Bus CT300 879-212 542 4UZAACBV21CH72803 2001 Champion Bus CT300 879-213 543 4UZAACBV91 CH72801 2001 Champion Bus CT300 879-214 544 4UZAACBV31CH72809 2001 Champion Bus CT300 879-215 545 4UZAACBV81CH72806 2001 Champion Bus CT300 879-216 546 4UZAACBV81CH72823 2001 Champion Bus CT300 879-217 547 4UZAACBV91CH72815 2001 Champion Bus CT300 879-218 548 4UZAACBV91CH72832 2001 Champion Bus CT300 879-219 549 4UZAACBVX1 CH72824 2001 Champion Bus CT300 879-220 559 4UZAACBVX1CH12838 2001 Champion Bus CT300 879-221 551 4UZAACBV91 CH72846 2001 Champion Bus CT300 879-222 552 4UZAACBV01 CH72833 2001 Champion Bus CT300 879-223 553 4UZAACBV91CH72B29 2001 Champion Bus CT300 879-224 554 4UZAACBV11CH72B39 2001 Champion Bus CT300 879-225 555 4UZAACBV81CH12840 2001 Champion Bus CT300 879-226 556 4UZAACBVX1CH72841 ExhibitS to Escrow Aareement STATEMENT OF FTA APPROVAL BY CITY OF DENTON. TEXAS I, , of the City of Denton, Texas do hereby swear and affirm that the City of Denton, Texas has received the approval of the FTA to transfer the Vehicles (as defined in the Asset Purchase Agreement between the City of Denton, Texas and the Denton County Transportation Authority dated September 30,2005) to the Denton County Transportation Authority. THIS statement is made to (escrow agent) to complete the transaction contemplated in the Asset Purchase Agreement, and does hereby swear under the penalties of perjury that the foregoing information is true and correct in all respects, and that is authorized to make this statement on behalf of the City of Denton, Texas. EXECUTED effective as of ,20_. By: Name: Title: STATE OF TEXAS s s ~ COUNTY OF DENTON SWORN TO AND SUBSCRIBED BEFORE ME on , in his capacity as _' 2005. by of the City of Denton, Texas. Notary Public, State of Notary's printed name: My commission expires: 786880. 7fSPWl3144101 011091505 Exhibit C to Escrow Aareement STATEMENT OF FT A APPROVAL BY DENTON COUNTY TRANSPORTATION AUTHORITY I, , of the Denton County Transportation Authority do hereby swear and affirm that the Denton County Transportation Authority has received the approval of the FTA to transfer the Vehicles (as defined in the Asset Purchase Agreement between the City of Denton, Texas and the Denton County Transportation Authority dated September 30, 2005) to .the Denton County Transportation Authority. THIS statement is made to (escrow agent) to complete the transaction contemplated in the Asset Purchase Agreement, and does hereby swear under the penalties of pe~ury that the foregoing information is true and correct in all respects, and that is authorized to make this statement On behalf of the Denton County Transportation Authority. EXECUTED effective as of ,20_. By: Name: Title: STATEOFT~S ~ S COUNTY OF DENTON S SWORN TO AND SUBSCRIBED BEFORE ME on , in his capacity as Transportation Authority. _' 2005, by of the Denton County Notary Public, State of Notary's printed name: My commission expires: 786880.7/SP3I1314410101/091605 OTHER BUS TRANSFER INSTRUMENT THIS OTHER BUS TRANSFER INSTRUMENT ("Instrument") is made as of September 30,2005, by the CITY OF DENTON, Texas, a Texas municipal corporation and home rule city ("Seller"). WITN ESSETH: WHEREAS, the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Buyer") and Seller entered into that certain Asset Purchase Agreement dated as of September 30, 2005 (the 'Purchase Agreement") providing, among other things, for the transfer of the Other Buses (as defined in the Purchase Agreement) (as identified on Exhibit A attached hereto and incorporated by reference for all purposes) by Seller to Buyer; and WHEREAS, in order to effectuate the transfer of the Other Buses as aforesaid, Seller is executing and delivering this Instrument; NOW THEREFORE, in accordance with the mutual covenants and agreements contained in the Purchase Agreement , Seller hereby CONVEYS AND TRANSFERS, SETS OVER AND DELIVERS, and has hereby CONVEYED, ASSIGNED, TRANSFERRED, SET OVER AND DELIVERED to Buyer, its successors and assigns, all of its right, title, and interest in and to and under all of the Other Buses. Seller and its successors and assigns, further covenants and agrees that Seller will do or cause to be done all such further acts and things and will execute, acknowledge and deliver, or will cause to be executed, acknowledged and delivered, any and all such further transfers, conveyances, instruments, powers of attorney and assurances as the Buyer may reasonably require for the better assuring, assigning, Page 1 787225.21SP3/13144/0 1 011091405 transferring and conveying to the Buyer, its successors and assigns, on the terms stated in the Purchase Agreement and herein, all and singular the Other Buses. THIS AGREEMENT SHALL BE CONTROLLED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. SELLER MAKES NO REPRESENTATIONS WITH REGARD TO THE OTHER BUSES, AND BUYER ACCEPTS THE OTHER BUSES 'AS IS, WHERE IS', WITH ALL FAUL TS. Nothing contained in this Instrument, express or implied, is intended to confer upon any Person not a party to the Purchase Agreement any rights or remedies of any nature whatsoever under or by reason of this Instrument or the Purchase Agreement or any document, instrument, or Agreement referenced therein or executed and delivered pursuant to the terms of the Purchase Agreement. IN WITNESS WHEREOF, Seller has executed this Instrument as of the Effective Date. SELLER: CITY OF DENTON, TEXAS By: Name: Euline Brock Title: Mayor Page 2 787225.21SP3/13144/0101/091405 Exhibit "An to Instrument Other Buses 787225.2JSP3I13144!01 01 1091405 USE AGREEMENT This Use Agreement ("Agreement") is entered into as of September 30, 2005, by and between the CITY OF DENTON, Texas, a Texas municipal corporation and home rule city ("Seller") and the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Buyer"). WIT N E SSE T H: WHEREAS, Buyer and Seller entered into that certain Asset Purchase Agreement dated as of September[30], 2005 (the "Purchase Agreement") providing, among other things, for the sale by Seller to Buyer of the Assets (as defined in the Purchase Agreement); and WHEREAS, in order to effectuate the orderly transition of the Business (as defined in the Purchase Agreement) and complete the transaction set forth in the Purchase Agreement Buyer and Seller have agreed to execute this Agreement; NOW THEREFORE, in consideration of the premises, the consideration paid pursuant to the Purchase Agreement, the mutual covenants and agreements contained in the Purchase Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, to the extent there is Business Intellectual Property (as defined in the Purchase Agreement) owned, licensed to or othelWise utilized by Seller, Seller grants Buyer unlimited access to and use of the same for purposes of operating tl:Je Business, including without limitation the intra-city bus line under the name "LINK" in the City of Denton, Texas to the extent Seller is permitted to do so by contract or law. SELLER: CITY OF DENTON, Texas, a Texas municipal corporation and home rule city By: Name: Euline Brock Title: Mayor STATE OF TEXAS S S 1 786902.3/SP3J13144/0101l091405 COUNTY OF DENTON s This instrument was acknowledged before me on the day of September, 2005, by Euline Brock, Mayor of the City of Denton, Texas, known or proved to me on satisfactory evidence to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed and in the capacity therein stated, on behalf of such municipal corporation. Notary Public, State of Texas [SEAL] 2 786902.3/SP3/13144/0101/091405 s: \Our Documents\Contracts\05\McDonald Transit.doc ASSIGNMENT OF THAT CERTAIN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND MCDONALD TRANSIT ASSOCIATES, INC. DATED APRIL 16,2002, AS AMENDED DATE: September 20, 2005 ASSIGNOR: The City of Denton, Texas, a Tex~ Municipal Corporation and home rule city. ASSIGNEE: The Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code. CONSENTING CONTRACTOR: McDonald Transit Associates, Inc., a Texas Corporation AGREEMENT: Type: Agreement to provide services for the City of Denton's passenger motor carrier transit system called LINK.. Date: April 16, 2002, amended on several occasions, the last amendment being on June 15, 2004. Parties: City of Denton, Texas and McDonald Transit Associates, Inc. Reference: The Agreement described herein shall hereinafter be referred to as the Agreement. 1. Assignor assigns to Assignee all Assignor's rights, obligations and interest in the Agreement. 2. Assignee Agrees to: a. Assume Assignor's rights, obligations and interests under the Agreement. b. Fully perform all Assignor's obligations under the Agreement's terms and conditions. IN WITNESS WHEREOF, the parties have executed this Assignment of that certain Agreement between the City of Denton, Texas and McDonald Transit Associates, dated April 16, 2002, as amended, as of the _ day of September, 2005, which shall be the effective date. PREVIOUS ASSIGNMENTS: None For Assignor: City of Denton, Texas 215 E. McKinney Denton, Texas 76201 By: Euline Brock, Mayor S:\OUf Documents\Contrncts\05\McDonald Transit.doc Attest: Jennifer Walters, City Secretary By: Approved as to Legal Form: :;4i14!~~meY For Assignee: Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 By: Charles Emery, Chairman Attest: Denton County Transportation Authority By: Jason Pearce, Secretary Approved as to Legal Form By: Rider Scott, General Counsel For Consenting Contractor: McDonald Transit Associates, Inc. 4500 Mercantile Plaza Drive, Suite 307 Fort Worth, Texas 76137 By: Robert T. Babbitt, President Page 2 of3 s:\Our Documents\Contracts\05\McDonald Transit.doc STATE OF TEXAS COUNTY OF DENTON This instrument was aclmowledged before me on the _ day of , 2005, by Euline Brock, Mayor of the City of Denton, Texas, a Texas municipal corporation, on behalf of said Municipal Corporation. [SEAL] Notary Public, State of Texas My Commission Expires (or Notary Stamp) STATE OF TEXAS COUNTY OF DENTON This instrument was aclmowledged before me on the _ day of 2005, by Charles Emery, Chairman of the Denton County Transportation Authority, a Texas political subdivision and a coordinated County Transportation Authority created by Chapter 460, Texas Transportation Code, on behalf of said Political Subdivision. [SEAL] Notary Public, State of Texas My Commission Expires (or Notary Stamp) STATE OF TEXAS COUNTY OF DENTON This instrument was aclmowledged before me on the _ day of , 2005, by Robert T. Babbitt, President of McDonald Transit Associates, Inc., a Texas corporation, on behalf of said Corporation. [SEAL] Notary Public, State of Texas My Commission Expires (or Notary Stamp) Page 3 of3 AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Solid Waste ACM: Howard Martin, Utilities 349-8232 .. SUBJECT CONSIDER ADOPTION OF AN ORDINANCE OF THE DENTON CITY COUNCIL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A MASTER LEASE AGREEMENT PROVIDING FOR THE LEASE OF CERTAIN TRACTS OF REALTY AT THE CITY OF DENTON LANDFILL, BY AND BETWEEN THE CITY OF DENTON, TEXAS, AS LESSOR AND THE DENTON COUNTY TRANSPORTATION AUTHORITY, AS LESSEE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND This agenda item is related to and will be considered only if the City Council approves the preceding agenda item involving the Council's approval of an ordinance regarding the execution of an asset purchase agreement, bill of sale, and other documents transferring all buses, equipment, and other assets from the city passenger motor carrier transit system known as "LINK" to the Denton County Transit Authority (DCT A). If the Council takes no action or does not approve such ordinance, then this matter will not be considered by the City Council on September 20,2005. The City's LINK transportation operation outgrew their office and vehicle operations space at the City's Service Center at the time LINK began bus service to the University of North Texas, and at that time began to maintain their own fleet of buses. The Solid Waste Department offered to provide LINK with the use of temporary office space; vehicle maintenance and fueling facilities; and vehicle parking at their City's Landfill (the Mayhill Road facility). The LINK operation then moved to the City Landfill run by the Solid Waste Department in July of 2004 and has been paying rental to the Solid Waste Department since that time. DCTA wishes to continue using Solid Waste Department at the City's Landfill until such time as they can relocate, in the future, to their own facilities. DCT A desires to enter into a separate Master Lease Agreement with the City in order to permit the LINK operation to continue operating by DCTA, uninterrupted, at the City Landfill. The Master Lease Agreement provides for an initial term of three (3) years from the effective date of the lease. The parties have negotiated two (2) additional one-year renewal terms, which would be available to DCT A, provided that they are not in default in their performance of the lease. The two (2) extension terms permitted would be available to DCT A. These options to extend mainly provide that if DCTA has not completed or made arrangements for its new facility, they may continue in possession for the extension term or terms. There are several paragraphs of the Master Lease Agreement that are still in the process of negotiation between City legal counsel and the DCT A house counsel and outside legal counsel. We expect to provide a final draft of the Master Lease Agreement to you in advance of the September 20, 2005 meeting - as soon as the remaining provisions have been completely negotiated and documented. OPTIONS The City Council may approve a Master Lease Agreement DCTA to use the City Landfill. The City Council may wish not to approve the continued use of City facilities by DCTA. The City Council may carry this agenda item forward to another of its meetings for further consideration. RECOMMENDA TION Staff recommends that the City Council approve the Master Lease Agreement. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) None. FISCAL INFORMATION Revenue of $339,048 to be received by the City in the initial three (3) year lease term. Additional potential revenue of up to $127,200 would be received by the City if both additional one (1) year renewal options to extend the term were exercised by DCT A. EXHIBITS 1. Master Lease Agreement. 2. Proposed Ordinance Respectfully submitted: a-(-l~ A. Vance Kemler Director of Solid Waste THE STATE OF TEXAS ~ COUNTY OF DENTON S MASTER LEASE AGREEMENT AN AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TX. AND THE DENTON COUNTY TRANSPORTATION AUTHORITY This Master Lease Agreement ("Lease") is entered into by and between the City of Denton, Texas, a Texas municipal corporation and home rule city e'Lessor") and the Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuantto Chapter 460, Tex. Transportation Code ("Lessee") on this 30th day of September, 2005, in accordance with the terms and conditions of that certain Asset Purchase Agreement of even date herewith ("Purchase Agreement") by and between Lessor and Lessee as Seller and Buyer, respectively, which contemplated that the Lessor and Lessee would enter into this Master Lease Agreement. Subject to the terms and conditions of this Lease, and in consideration of mutual covenants, obligations, and agreements contained in this Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Lessee each agree as follows (all capitalized terms herein shall be defined herein as stated in the Purchase Agreement unless otherwise defined herein): Article 1 LEASE PREM ISES 1.1 Lease Premises. Lessor does hereby lease, demise, and let to Lessee and Lessee does hereby lease and take from Lessor certain premises situated within the City of Denton, State of Texas, being more particularly described as follows: (a) that .428 acres which is legally described on Exhibit "A," attached hereto and incorporated herein by reference for all purposes, and the improvements thereon ("Tract I") including, without limitation, an approximately 3000 square foot building (commonly known herein as the "Service Bay Building") which contains three (3) vehicle maintenance and repair bays, and permanently attached to the exterior of the Service Bay Building is a vehicle wash rack; (b) that .519 acres which is legally described on Exhibit "B," attached hereto and incorporated herein by reference for all purposes, and the improvements thereon ("Tract II") (commonly known herein as the "Bus Parking Area") on which Lessee's Vehicles (as defined in the Agreement) are to be parked or stored; (c) that .201 acres which is legally described on Exhibit "C," attached hereto and incorporated herein by reference for all purposes, and MASTER LEASE AGREEMENT - PAGE 1 784815.111SP3/13144/0100/091405 EXHIBIT 1 the improvements thereon ("Tract III") and on which is located (i) a triple-wide modular building (Serial Numbers TXLAOK 998437, TXLAOK 008290 and TXLAOK008281) (USus Admin Office"), which Lessor now leases from General Electric Capital Modular Space, a division of Transport International Pool, Inc. ("GECMS") and shall continue to do same during the Term (as defined below) of this Lease and which Lessor shall sublet to Lessee as is provided hereinbelow, and (ii) a 10,000 gallon fuel tank owned by Lessor and located adjacent to Service Bay Building, of which Lessee shall have exclusive use to store fuel for Lessee's Vehicles during the Term (with each of the foregoing tracts and the improvements thereon being collectively called herein the "Premises"). Together with all rights, privileges, easements, appurtenances, and amenities belonging to, or in any way pertaining to, the said Premises, including full rights of ingress and egress to said Premises. 1.2 Condition. Lessee hereby accepts the Premises and the other improvements and fixtures thereon "AS IS, WHERE IS," and agrees that the Seller is not making any warranties regarding the condition or suitability for intended use of the Premises or the other improvements and fixtures thereon. Article 2 TERM 2.1 Initial Term. The initial term of this Lease shall be for thirty-six (36) months, beginning on October 1, 2005 ("Commencement Date") and ending on September 30, 2008 ("Expiration Date") ("Initial Term"). 2.2 Extensions. The Initial Term may be extended for up to two (2) successive one (1) year periods (with each of such extension periods being called herein an "Extension Period") upon Lessee providing written notice to Lessor in accordance with Article 15 below not less than sixty (60) days prior to (i) the Expiration Date, if applicable, or (ii) the last day of the applicable Extension Term. During any Extension Period hereunder, the terms and conditions of this Lease shall remain unchanged and continue to be effective and in full force, subject to the change in monthly rental provided below or any written agreement otherwise entered into between Lessor and Lessee (with the Initial Term and the applicable Extension Periods being collectively known as the "Term"). Article 3 RENT 3.1 Rental in Initial Term. On or before the first day of each month during the Initial Term (beginning on the Commencement Date), Lessee shall pay to Lessor the sum of Nine Thousand Four Hundred Eighteen Dollars ($9,418) per month. MASTER LEASE AGREEMENT - PAGE 2 784815.111SP3/13144/0100/091405 3.2 Rental in Extension Terms. If Lessee exercises its right to extend the Initial Term of this Lease in accordance with Section 2.2 above, on or before the first day of each month (beginning on or before the first day of the applicable Extension Period (which shall be October 1, 2009 or October 1, 2010, respectively)), Lessee shall pay to Lessor the sum of Five Thousand Three Hundred Dollars ($5,300) per month. 3.3 Place of Payment. Lessee shall pay all amounts due under this Lease to: City of Denton clo Director of Solid Waste Solid Waste Fund 1527 South Mayhill Road Denton, Texas 76208 or at such other address of which Lessor shall provide notice to Lessor in accordance with Article 15 below. 3.4 Holding Over. The Term of this Lease (including the Initial Term and each Extension Term if exercised as provided herein) shall expire no later than September 30, 2010. However, if the Lessee does not vacate the Premises upon the expiration of the Term, the Lessee's occupancy of the Premises shall be a month-to-month tenancy, subject to all of the terms of the Lease applicable to a month-to-month tenancy, except that the monthly rental during such tenancy shall be Nine Thousand Five Hundred Dollars ($9,500) per month and shall be due and payable beginning on October 1, 2010 and shall be due and payable thereafter on the first day of each month until such tenancy terminates; however, if such tenancy ends on a day other than the last calendar day of the month, the rental for any fractional calendar month of the tenancy shall be prorated by days. 3.5 Early Termination. Should the Lease be terminated prior to the Expiration Date of the Initial Term for any reason whatsoever, Lessee covenants to pay to Lessor within sixty (60) days of such date of termination the sum of One Hundred Forty-Eight Thousand Two Hundred Forty-Eight Dollars ($148,248.00) minus the sum obtained by multiplying Four Thousand One Hundred Eighteen Dollars 4,118.00) times the number of whole months which have expired since the Commencement Date. Such payment shall be made in lieu of any other remedy under this Lease or in equity. 3.6 Late Fee. If at any time Lessee's rental payment due hereunder is past due for thirty (30) or more days, Lessee shall pay Lessor a Late Fee of One Hundred Fifty Dollars ($150.00). Article 4 LESSOR'S TITLE 4.1 Lessor's Title. Lessor covenants and warrants that it has good and marketable title to the Premises, plus all other real estate shown on Exhibit D, including, without limitation, all means and ways of ingress and egress for the same. Lessor holds the Premises and all other real estate shown on Exhibit D in fee-simple absolute, free MASTER LEASE AGREEMENT - PAGE 3 784815.11/SP3/13144/0100/091405 and clear from any lien, claim or encumbrance that would affect the use and enjoyment of the Premises by the Lessee. 4.2 Lessor's Authoritv. Lessor has full right, power and authority to enter into this Lease and to grant to Lessee the leasehold estate contemplated herein and all rights purported to be herein granted. Article 5 USE AND ENJOYMENT 5.1 Permitted Use. Lessee shall use the Premises as follows: (a) Tract I, including the (i) Service Bay Building and the three ([3]) vehicle maintenance repair bays contained therein, shall be utilized by Lessee to repair and maintain the Vehicles and any vehicle that Lessee may own, rent, lease or use in the future and Lessor and Lessee shall share the operations and use of the vehicle washrack permanently attached to the exterior of the Service Bay Building; and (ii) a 10,000 gallon fuel tank which is owned free and clear of any encumbrance, lien or restriction by Lessor and during the entirety of the Term of this Lease shall be exclusively used by Lessee to store fuel for Lessee's Vehicles (with the uses of Tracts I, II and III of the Premises being collectively known herein as the "Use~'); (b) Tract II, including the paved Bus Parking Area thereon shall be utilized for the parking and storage of the Buses and any other vehicle that Lessee may own, rent, lease or use in the future; and (c) Tract III is the location of (i) the Bus Admin Office which is a triple- wide modular building that shall be used by Lessee as the administrative office for the operation of the intra-city bus line in the City of Denton, Texas (commonly known as "LINK"); AND AS A CONDITION TO LESSEE AGREEING TO ENTER INTO THE PURCHASE AGREEMENT AND THIS LEASE, LESSOR AGREES TO SEEK WRITTEN APPROVAL OF GECMS TO ENTER INTO A SUBLET AGREEMENT SIMULTANEOUSLY WITH LESSOR AND LESSEE EXECUTING AND DELIVERING THIS LEASE, WHEREBY LESSEE SHALL SUBLET FROM LESSOR THAT BUS ADMIN OFFICE DURING THE TERM OF THIS LEASE ON THE SAME TERMS AND CONDITIONS AS LESSOR SHALL CONTINUE TO LEASE THAT BUS ADMIN OFFICE FROM GECMS, THE OWNER OF THE BUS ADMIN OFFICE~ DURING THE ENTIRETY OF THE TERM AND SUCH' SUBLET AGREEMENT SHALL BE COTERMINUS WITH THIS LEASE; AND MASTER LEASE AGREEMENT - PAGE 4 784815.11/SP3/13144/0100/091405 Lessor further covenants and warrants that there are no restrictive covenants, zoning ordinances or other laws, regulations or ordinances (federal, state or local) which will at any time prevent Lessee, or its officers, employees, customers, invitees, contractors, guests or agents, from conducting the Use or otherwise conducting the full and complete operation and functioning of the intra-city bus system commonly known as "LINK" in the City of Denton, Texas, including, without limitation, conducting the parking, operation, maintenance, repair and administration of Lessee's Vehicles within the Premises in a manner reasonably determined by the Lessee. If at any time during the term of this Lease, the Use of the Premises for such described purposes, including the Use of the Bus Parking Area for vehicular driving or parking, should ever be prohibited or prevented by any restriction, ordinance, law, regulation, decision, or otherwise, Lessee shall have the right at any time thereafter to terminate this Lease by giving thirty (30) days written notice to the Lessor in accordance with Article 15 below, whereupon Lessee shall be immediately released from any further obligations of any kind which would otherwise accrue hereunder upon Lessee=except as is provided in Section 3.5 hereof. In connection with the Use of and the related activities in, upon, and about the Premises, Lessee shall materially comply with all federal, state or local laws, statutes, ordinances, permits, regulations, applicable to the Use. 5.2 Peaceful Enioyment. Lessor covenants that Lessee shall and may peacefully have, hold, and enjoy the Premises for the Initial Term and any applicable Extension Period(s), including specifically, having an unrestricted ingress and egress from Mayhill Road in the City of Denton, Texas, into and out of the Premises for the Use herein specified. 5.3 Remedv. Lessor agrees that any use of the Premises by a third-party inconsistent with the terms and conditions of this Lease, shall be prohibited by Lessor upon notice being provided by Lessee to Lessor in accordance with Article 15 below. In particular, an obstruction, improvement, fixture, vehicle, structure, or any other impediment in or on the Premises, or in the ingress or egress access corridors, or adjacent areas shown on Exhibit D, that impairs, disrupts or limits in any manner the Use of the Premises, shall immediately be removed or cured by action of the Lessor upon receipt of written notice from the Lessee in accordance with Article 15 below. Lessor shall maintain whatever signage or notice is necessary to prevent said limitation or impairment of the Use of the Premises by the Lessee and to enforce and effect the removal of said limitation or impairment. Article 6 MAINTENANCE 6.1 Lessor's Repairs. Lessor shall, at its expense, maintain at all times the paved surface condition of the Bus Parking Area of the Premises, including the access lanes for ingress and egress in and to the Premises and the other real estate shown on Exhibit D, in good operable repair and condition. Upon receipt of written notice by Lessee to Lessor provided in accordance with Article 15 below of any defect or need for MASTER LEASE AGREEMENT - PAGE 5 784815.11fSP3f13144f0100f091405 repairs of items to be maintained hereunder by Lessor (including, without limitation, repairing the surface of the Bus Parking Area) Lessor shall commence repair of same within thirty (30) business days after receipt of such notice and diligently pursue such repairs to timely completion. However, if a condition for which Lessor is responsible, prevents Lessee from the defined Use of the Premises, Lessee shall be released from any obligation under the Lease, including the obligation to pay any rental from the day such condition commenced until Use of the Premises is restored in the reasonable opinion of the Lessee. Further, if such condition persists for more than thirty (30) days, then Lessee may terminate this Lease in all respects by five (5) days written notice provided in accordance with Article 15 below to Lessor and thereafter Lessee shall have no further obligation of any kind or nature under this Lease, except as provided in Section 3.5 hereof. 6.2 Other Repairs of the Premises. Except as provided in Section 6.1 above or otherwise herein, Lessee shall make, at Lessee's sole cost and expense, all necessary repairs to the Premises as required to maintain the property in good working order. At reasonable intervals during the hours of 8:00 A.M. to 5:00 P.M. of each Business Day, Lessor shall have the right to conduct periodic maintenance inspections for the purpose of confirming that Lessee's obligations under this provision are performed. 6.3 Alterations and Improvements. Lessee, at Lessee's sole cost and expense, may remodel, redecorate, and make additions, improvements and replacements of, and to all or any part of the Premises except the Bus Admin Office from time to time during the Term, as Lessee may deem desirable (including the right to place and install personal property, trade fixtures, equipment and other temporary installations in and upon the Premises including the Bus Admin Office), provided that such is made or done in a workmanlike manner and that good quality materials are used. All personal property, equipment, machinery, trade fixtures and temporary installations placed or installed upon the Premises by Lessee during the Term shall remain Lessee's property, free and clear of any claim by Lessor, and Lessee shall have the right to remove the same at any time during the Term of this Lease; provided however, that all damage to the Premises caused by any such removal shall be fully repaired by Lessee, at Lessee's expense and shall be done to Lessor's reasonable satisfaction. Article 7 TAXES, INSURANCE, UTILITIES AND SIGNS 7.1 Property Taxes. Lessor covenants and warrants that the Premises is exempt from general real estate taxes of any and all taxing authorities (federal, state or local). Lessee shall be liable for, and solely responsible for, paying all personal property taxes with respect to Lessee's personal property located on or stored at the Premises. MASTER LEASE AGREEMENT - PAGE 6 784815.11/SP3/13144/01001091405 7.2 Insurance. A. Lessor shall maintain "all perils" insurance coverage (including fire and extended coverage insurance) for the Premises in such amounts as Lessor shall deem reasonable in relation to the age, location, type of construction and physical condition of the Premises. However, Lessee shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in or at the Premises. Lessee understands and agrees that Lessor shall in no way be liable respecting Lessee's personal property located on the Premises unless the damage occurred from an act or negligence of Lessor or any of Lessor's officials, officers, employees, guests, agents or invitees. B. Lessee and Lessor shall each, at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities of each on the Premises or on the other real estate reflected on Exhibit D, with the premiums thereon fully paid on or before their due date, issued by and binding upon an insurance company licensed in the State of Texas and rated "A-" or higher by A.M. Best Carriers. Each such policy shall be issued for insurance coverage for an amount of not less than One Million Dollars ($1,000,000) combined single-limit coverage of bodily injury, property damage or a combination thereof. Lessor or Lessee (as applicable) shall be listed as an additional insured on the other party's policy or policies of comprehensive general liability insurance and Lessor and Lessee (as applicable) shall provide the other party with current certificates of insurance evidencing its compliance with this Section. Lessee shall obtain the agreement of Lessee's insurers to notify Lessor that the 'insurance policy required hereunder is due to expire at least thirty (30) days prior to such expiration. Lessor shall assume no liability for and shall not be required to maintain insurance against thefts within or upon the Premises. The risk of loss for theft within or upon the Premises shall be borne solely by Lessee. 7.3 Utilities. Lessor covenants and warrants that all solid waste, sewer water, gas, potable water, electricity, telephone and all other necessary utilities are In all respects available for, and are now fully and completely connected to, the Premises. However, all applications and connections for necessary utility services on or to the Premises shall be made in the name of Lessee only; and Lessee shall be solely liable for, and shall maintain in current status, any and all utility charges as they become due, including those charges for solid waste, sewer, water, gas, potable water, electricity, telephone charges, and charges for any other utilities. Lessor shall separately invoice Lessee on an annual basis for the use by Lessee of the ADT fire alarm system monitoring service located in and on the Service Bay Building and Lessee shall pay such invoice to Lessor no later than twenty-one (21) days after the date of Lessor's invoice. MASTER LEASE AGREEMENT - PAGE 7 784815.11/SP3/1314410100/091405 7.4 Signs. Lessee shall have the right to place on the Premises, at locations selected by Lessee, any signs which are permitted by applicable zoning ordinances and private restrictions which are subject to the prior written reasonable approval of Lessor, which approval will not be unreasonably withheld. Lessor may refuse to consent to any proposed signage that is, in Lessor's opinion, too large, or deceptive, or unattractive or otherwise inconsistent with, or inappropriate to the Premises, but Lessor's consent to Lessee's desired signage will not be unreasonably withheld. Lessor shall assist and cooperate with Lessee in obtaining any necessary permission from all governmental authorities or adjoining owners and occupants of the Premises or the other real estate shown on Exhibit D, for Lessee to place or construct the foregoing signs. Lessee shall repair all damage to the Premises resulting from the removal of all signs installed by Lessee. Article 8 PREMISES RETURN 8.1 Premises Return. Lessee agrees to return the Premises at the conclusion of the Term or upon earlier termination, in a condition reasonably similar to that in which Lessee received said Premises, save and except for ordinary wear and tear. Article 9 ASSIGNMENT 9.1 Assignment. Lessor and Lessee each agree it will not to assign its respective interest under this Lease; and Lessee agrees that it shall not sublet the Premises (or any portion thereof), without the prior consent of the Lessor. Article 10 RIGHT OF ACCESS 10.1 Grant of Right of Access. Lessor hereby grants to Lessee and its successors and assigns (together with their respective officers, employees, customers, visitors, guests, and invitees) a temporary non-exclusive right of access and use ("Right of Access") over and across all parts of the Premises and all other real property shown on Exhibit D including, without limitation, a right of access to the Premises from Foster Road (the "Access Area"). The Right of Access shall provide free, continuous and uninterrupted ingress, egress and regress by all pedestrians or vehicles to and from the Premises. The Lessor agrees not to interfere with or to construct, obstruct, place or permit to be placed any fences, barriers or other obstacles or impediments which will obstruct, hinder or limit in any respect passage of any pedestrian or vehicle to the Premises through the Access Area, including, without limitation, Foster Road. MASTER LEASE AGREEMENT - PAGE 8 784815.11/SP3/1314410100/091405 The Lessor agrees to keep the existing roadways and paths, including, without limitation, Foster Road (as shown on Exhibit D) in good working order, at its sole cost and expense. Upon the default of the Lessor to perform its obligations under this Right of Access, Lessee shall have the right to exercise any rights or remedies provided at law or in equity, including a claim for all court costs and recovery of reasonable attorneys' fees. 10.2 Covenants Runninq With the Land. The Access Area is an appurtenant. The obligations, benefits and burdens contained in this Agreement are those of the Lessees under this Lease, and shall run with the land, and shall be binding upon and inure to the benefit of said owners, tenants and mortgagees and their respective heirs, personal representatives, successors and assigns. If the Lessor or any future owner of the Premises or the other real property reflected on Exhibit D shall hereafter convey title to the Premises or the other real property reflected on Exhibit D, such party's liability under this Lease for obligations performable after the date of such conveyance shall cease and such obligations shall be those of the record owner of the Premises or the other real property reflected on Exhibit D as of such time period. 10.3 Term. The term of the Right of Access shall coincide with the Term of the Lease. Article 11 DEFAULT AND REMEDY 11.1 Lessor. If Lessor fails to comply with any covenant or obligation of Lessor under this Lease, then Lessee shall give Lessor written notice provided in accordance with Article 15 below, specifying the nature of the default and Lessor shall then have 30 days in which to cure such default. (However, Lessor and Lessee agree that a default under the Purchase Agreement shall not be a default under this Lease.) If after the 30- day period of cure, the Lessor has not cured the default, then Lessee shall have the option to declare this Lease terminated in all respects and without any further obligation of any kind or nature, without prejudice to the right of Lessee to recover from Lessor such damages as Lessee sustains as a result of said default. 11.2 Lessee. Should Lessee not comply with the payment of rent described herein, or any other provision of this Lease of which default Lessee shall then have thirty (30) days in which to cure such default after receipt of written notice provided in accordance with Article 15 below, specifying the nature of the defect, it shall be deemed a default under this Lease. (However. Lessor and Lessee aaree that a default under the Purchase Aareement shall not be a default under this Lease.) Lessor shall have, in addition to the remedies provided within this Lease Agreement, all remedies allowed it by law and equity. Lessor shall use reasonable efforts to mitigate its damages. In the event of a breach of this Lease by Lessee, Lessor shall recover from Lessee its reasonable attorney fees and out-of-pocket costs. MASTER LEASE AGREEMENT - PAGE 9 784815.11/SP3/13144/0100/091405 Article 12 ENVIRONMENTAL 12.1 Lessee's Environmental Liability. Lessee shall comply with all material provisions of applicable environmental law, whether Federal, State, or local, respecting the Use of the Premises. Lessee shall fully disclose and contact David Dugger, Landfill Manager, City of Denton, Texas at (940) 349-8001, in the event that any hazardous materials are brought onto the Premises by or for the benefit of Lessee. Additionally, a material safety data sheet ("MSDS") shall be prepared by Lessee, and furnished to Lessor on the next business day after any hazardous materials are brought by Lessee or Lessee's agents onto the Premises. Lessee shall store all hazardous materials within the Service Bay Building in a safe manner. Lessee shall be solely responsible for the clean-up and remediation of any and all environmental liabilities which result from its use of the Premises. 12.2 Lessor's Representations and Warranties. Lessor represents and warrants to the best of Lessor's knowledge and belief that any handling, transportation, storage, treatment or usage of Hazardous Material that has occurred on the Premises to date has been in compliance with all applicable Federal, State, and local laws, regulations and ordinances. Lessor further represents and warrants that no leak, spill, release, discharge, emission or disposal of Hazardous Material has occurred on the Premises to date and that the soil or groundwater on or under the Premises is free of Hazardous Material as of the date that the term of this Lease commences unless expressly disclosed by Lessor to Lessee in writing. 12.3 Definitions. For purposes of this Article 14, the term "Hazardous Material" shall mean any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, or oil as defined in or pursuant to the Resource Conservation and Recovery Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Federal Clean Water Act, as amended, or any other federal, state or local; environmental law, regulation, ordinance, rule, or bylaw, whether existing as of the date hereof, previously enforced or subsequently enacted. Article 13 VENUE 13.1 Venue. Venue for performance and enforcement of this Lease shall at all times be in Denton County, Texas. Article 14 NOTICE 14.1 Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by prepaid United States mail, certified, return receipt requested, addressed as follows: MASTER LEASE AGREEMENT - PAGE 10 78481S.111SP3/13144/0100/09140S To Lessor: To Lessee: City of Denton, Texas Attn: City Manager 215 East McKinney Street Denton, Texas 76201 Denton County Transportation Authority c/o John O. Hedrick, Executive Director 1660 South Stemmons Lewisville, Texas 75057 Phone: (940) 349-8307 Fax: (940) 349-8596 Phone: (972) 221-4600 Fax: (972) 221 4601 And With a copy to: Strasburger & Price, LLP Attn: Rider Scott, Esq. 2801 Network Boulevard Suite 600 Frisco, Texas 75034 Vance Kemler, Director City of Denton, Texas Solid Waste Department 1527 South Mayhill Road Denton, Texas 76208 Phone: (940)349-8044 Fax: (940) 349-8057 Phone: (469) 287 3906 Fax: (469) 227 6578 Lessor and Lessee shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. Article 15 WAIVER 15.1 Waiver. No failure of Lessor to enforce any term of this Lease shall be deemed to be a waiver. Article 16 HEADINGS 16.1 Headings. The headings and paragraph names used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease. Article 17 SUCCESSORS 17.1 Successors. The terms and provisions ofthis Lease shall extend to and be binding upon Lessor and Lessee and their respective legal representatives, officers, directors, successors and assigns. MASTER LEASE AGREEMENT - PAGE 11 784815.11/SP3113144/01001091405 Article 18 CONSENT 18.1 Consent. Lessor shall not unreasonably withhold its consent with respect to any matter for which Lessor's consent is required under this Lease. Article 19 COMPLIANCE WITH LAW 19.1 Compliance with Law. This Lease shall be governed by, interpreted and enforced solely in accordance with the laws of the State of Texas. Venue of any cause of action arising hereunder shall lie exclusively in the courts of Denton County, Texas. Any provision hereof which is deemed or held legally void or unenforceable shall not void this entire Lease, and all other provisions of this Lease shall remain in full force and effect. Article 20 FEDERAL TRANSIT ADMINISTRATION REQUIREMENTS 20.1 Federal Transit Administration ("FTAn) Requirements. Any federal, state and local interest in the Premises will remain with Lessor and will not be altered by this Lease. Both Lessor and Lessee agree to comply with the following Subsections of this Section during the Initial Term, as well as for any applicable Extension Period: A. Energy Conservation Requirements: Lessee agrees to comply with applicable mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plan issued in compliance with the Federal Energy Policy and Conservation Act. B. Federal Changes: Lessee shall at all times comply with all applicable FTA regulations, policies, procedures and directives, including, without limitation, those listed directly or by reference in the agreement between Lessor and FTA, as they may be amended or promulgated from time to time during the Lease. Lessee's failure to comply shall constitute a breach of this Lease. C. Lessee acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as amended, 31 USC 9~3801 et seq.; and U.S. Department of Transportation Regulations entitled "Program Fraud Civil Remedies," 49 CF Part 31, apply to its Use of the Premises. D. All contractual provisions required by U.S. Department of Transportation ("DOT~~) whether or not expressly set forth in this Lease, as set forth in FTA Circular 4220.1 E, as amended, are hereby incorporated by reference. Anything to the contrary herein notwithstanding, all FTA mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this Lease. Lessee shall not perform any act, fail to perform any act, or refuse to comply WIth any requests, which would cause Lessor to be in violation of the FTA terms and conditions. MASTER LEASE AGREEMENT - PAGE 12 784815.11/SP3/13144/0100J091405 Article 21 FINAL AGREEMENT 21.1 FINAL AGREEMENT. THIS LEASE SUPERSEDES ALL PRIOR UNDERSTANDINGS OR AGREEMENTS (ORAL OR WRITTEN) ON THE SUBJECT MATTER HEREOF. THIS LEASE CONTAINS THE ENTIRE AGREEMENT WITH RESPECT TO THE SUBJECT MATTER HEREOF. THERE ARE NO ORAL AGREEMENTS OF THE PARTIES RESPECTING THE SUBJECT MATTER OF THIS LEASE. THIS LEASE MAY BE AMENDED OR MODIFIED ONLY BY A FURTHER WRITTEN DOCUMENT THAT IS DULY EXECUTED AND DELIVERED BY BOTH PARTIES. Article 22 TIME OF ESSENCE 22.1 Time is of the essence with respect to this Lease. Article 23 COUNTERPARTS 23.1 This Lease may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but such counterparts shall together constitute one and the same instrument. [Remainder of Page Intentionally Left Blank-- Signatures Follow] MASTER LEASE AGREEMENT - PAGE 13 784815.11/SP3/1314410100/091405 IN WITNESS WHEREOF, Lessor and Lessee, by and through their duly authorized signatories, have executed and delivered this Lease Agreement in four (4) original counterparts, as of the day and year first above written. LESSOR: LESSEE: City of Denton, Texas 215 E. McKinney Denton, Texas 76201 Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 By: By: HONORABLE EULlNE BROCK MAYOR CHARLES EMERY CHAIRMAN ATTEST: ATTEST: City of Denton. Texas Denton County Transportation Authority By: By: JENNIFER WALTERS CITY SECRETARY JASON PEARCE SECRETARY APPROVED AS TO LEGAL FORM APPROVED AS TO LEGAL FORM: By: By: RIDER SCOTT GENERAL COUNSEL ED SNYDER CITY ATTORNEY MASTER LEASE AGREEMENT - PAGE 14 784815.11/SP3/13144/0100/091405 ORDINANCE NO. 2005- AN ORDINANCE OF THE DENTON CITY COUNCIL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A MASTER LEASE AGREEMENT PROVIDING FOR THE LEASE OF CERTAIN TRACTS OF REALTY AT THE CITY OF DENTON LANDFILL, BY AND BETWEEN THE CITY OF DENTON, TEXAS, AS LESSOR AND THE DENTON COUNTY TRANSPORTATION AUTHORITY, AS LESSEE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton City Council having previously considered and approved on this date an Asset Purchase Agreement, Bill of Sale, and other related documents which manifest the transfer of all assets currently known as the "LINK Public Transportation Service" from the City of Denton, Texas to the Denton County Transportation Authority, a political subdivision and a county transportation authority created pursuant to Chapter 460, Texas Transportation Code; and WHEREAS, the City of Denton, Texas and the Denton County Transportation Authority ("DCT A") also desire to enter into a separate Master Lease Agreement (the "Lease") regarding certain real property owned by the City of Denton, in Denton County, Texas, being three tracts of land totaling approximately 1.148 acres, in the City of Denton Landfill; together with access rights and certain leased facilities, so that DCT A may operate from a location within the City of Denton, Texas; and WHEREAS, the City Council deems it to be advantageous and in the public interest to enter into that certain Master Lease Agreement with DCTA, as lessee, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1 That the City Council hereby approves and authorizes the Mayor, or in her absence, the Mayor Pro Tern, to execute the Master Lease Agreement by and between the City of Denton, Texas, as Lessor and DCTA, as Lessee, in substantially the form of the Master Lease Agreement attached hereto as "Exhibit "A" and incorporated herewith by reference. SECTION 2. That the expenditure of funds, if any, as provided in the Master Lease Agreement is hereby authorized. SECTION 3. That a true and correct certified copy of this executed ordinance will be sent to the appropriate officials at the Federal Transit Administration by Mark Nelson, Director of Airport & Transit Operations ofthe City, immediately upon its passage and approval. SECTION 4. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. 1 EXHIBIT 2 EULINE BROCK, MAYOR ATTEST: JENNIFER W ALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWINM. SNYDER, CITY ATTORNEY By: r~LQQ 4 gJ S:\OUT Documents\Ordinances\05\Master Lease Agreement-Realty-COD and DCTA 2005.doc 2 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Planning and Development Departme~~ CM/DCM/ACM: Jon Fortune, Assistant City Manager SUBJECT Z05-0017 (Robson Ranch) Hold a public hearing and consider adoption of an ordinance approving an amendment to the Detailed Plan for Planned Development 173 (PD-173) zoning district for approximately 33.65 acres. The subject property is generally located on the north side of Robson Ranch Road, approximately 2,500 feet east of Florence Road. The Planning and Zoning Commission recommends approval (7-0). BACKGROUND Applicant: Robson Ranch Development, LP Argyle, Texas The applicant requests approval of a Detailed Plan Amendment for Planned Development 173 (PD-173). The applicant is requesting to add 11.37 acres ofland to the Detail Plan extending the Golf Course. The applicant is also requesting some minor lot line changes within the remaining 22.28 acres of the subj ect site. Public notification information is provided in Attachment 3. As of this writing, staff has received no responses from property owners within 200 feet of the subject site. OPTIONS 1. Approve as submitted. 2. Approved with conditions 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDA TION Based the finding listed below staff recommends approval of the requested Detailed Plan amendment for Planned Development 173: 1. The proposed amendment to the Detail Plan is minor in nature. 2. Outdoor Recreation uses are permitted within Planned Development 173 per Ordinance 2001-247. ESTIMA TED PROJECT SCHEDULE A Preliminary and a Final Plat has been submitted for the subject site. The amendment to the Detailed Plan must be approved prior to the approval of the Preliminary and Final Plat. 1 PRIOR ACTIONIREVIEW The following is a chronology of Planned Development 173, commonly known as Robson Ranch: Application Acreage Approval Date Ordinance Concept Plan 2,725 August 3, 1999 99-265 Detailed Plan for Water Reclamation Plant 2.8 September 7, 1999 99- 319 Detailed Plan for Residential and Golf Course 1,361.3 February 15,2000 2000-059 uses Amended Detail Plan for Robson Blvd. October 19,2000 Staff Level of (Minor Amendment) Approval Detailed Plan for Maintenance Yard 1.4 June 5, 2001 2001-215 Amended Concept Plan to allow gas well 2,275 July 17,2001 2001-247 operations and to amend landscaping requirements Amended Detail Plan for sidewalk setbacks. November 20,2001 Staff Level of (Minor Amendment) Approval Amended Detail Plan for reduction in lot April 16, 2002 Staff Level of yield. (Minor Amendment) Approval Amendment to the Concept Plan and approval 673.36 October 7,2003 2003-324 of a Detailed Plan Amendment to the Detail Plan for Sec 8-1 35.7 September 30,2004 Staff Level of (Minor Amendment) Approval Amendment to the Detail Plan (Minor 30.25 August 8, 2005 Staff Level of Amendment) Approval Amendment to the Detail Plan (Minor 25.18 August 8, 2005 Staff Level of Amendment) Approval Amendment to the Detail Plan (Minor 17.64 August 8, 2005 Staff Level of Amendment) Approval ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification 4. Photos 5. Detailed Plan 6. August 24,2005 Planning and Zoning Commission Minutes 7. Ordinance ~bY Supriya Chewle, Planner I Respectfully submitted: ~~ Kelly Carpenter, AICP Planning and Development Director 2 ATTACHMENT 1 Staff Analysis Summary of Request The Detail Plan encompasses approximately 1,361.3 acres for Planned Development 173 (PD- 173). This amendment will add 11.37 acres to the existing Detail Plat increasing it to a total of 1,372.67 acres. The acres around the subject site are used for Golf Course and Single Family Residential uses. The subject site is shown as Open Space in the Concept Plan. The applicant is also requesting some minor lot line changes within the remaining 22.28 acres of the subject site. Existin2 Condition of Property Property History. February 20, 2002 - The subject property retained the Planned Development 173 (PD-173) zoning status and land use classification by Ordinance 2002-040. The subject property in question is vacant. The subject site is shown as Open Space in the Concept Plan. Adjacent zoning: The subject site is centrally located within the Planned Development 173 and hence is surrounded by PD-173 zoning district. Comprehensive Plan Analysis Proposed Golf Course is located within the "Neighborhood Centers" future land use area. These areas may develop in conventional patterns or may be developed in a pattern of 'neighborhood centers'. Neighborhood centers are oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to-day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school. Development Review Analysis Per Section 35-181 of Chapter 35 of the Code of Ordinances, all planned development districts shall be developed, used, and maintained in compliance with the approved Concept Plan for the di stri ct. Planned Development 173 has been designed to allow the co-existence of residential, non- residential, outdoor recreation, and gas well operations. The proposed amendment to the Detail Plan as submitted is compatible with The Denton Plan and surrounding land uses. 3 ATTACHMENT 2 location/Zoning Map NORTH Future land Use Map 4 ATTACHMENT 3 Public Notification NORTH Scale: None Newspaper Notification Date: August 14, 2005 200' Legal Notices* sent via Certified Mail: 2 - In Opposition: 0 - In Favor: 0 - Neutral: 0 Percent of land within 200' in opposition: 0% *Property in the ET J is not notified 5 ATTACHMENT 4 Photos 6 I~~I I i Ii;, " II I~~; h~ il ;6~ I!~!I ! !III. !!l Ii ~ z~1 . · 1;1- II' i I ~I~ ~~ i~1I11 ! ~I~~~~~ I ~~~ ~~~~. Ii ~~g --'!l! !~'" ~I I' I ~:EB ~~ ~d!il !ii~ ..: 0 laIIllU II 9 11.111 !!~ it !Ill L I ... l!; ~ E;; z lj: :> I~ I , = ~ 3 & II .. = . .. .. ~ il ~ ! 5 H.. II .. I I i j i! :;i1 8 I I~ Ii II "II I I i '1 .... .. .... .. I II 'Ii .. .. .. ~ ! I~ ~ If " "8 I 1m IfI II! g~ i iU ~~ I I I II I I I I Uh I III I ! I .. I i, j I I . . l!1i:l! l! I!!II i d I . ~ ~ ti Iii J. :i: Ii ~ !l! i ~ ~ ~ i c ifi ~ II@ i"u 1999 ~ o. ......-.::~~~~ r--pJ1T--t-...;/ 1/" ~t~~~,~o:::.~ " '''',* ~'<!!!f--..i.. li!l,ll 7 I 'h ,~ ~" ::'::,J 't r --1ff.,if-_~~1 I ,~ -:...."ff-r--- ";:;o~;:;o j!l;" IS! I / , ""1/, 1#'= :=;1:-:--- - _..""'q:l~~=J.."""-__1- I ...HJJJ..... I :;:~.=:.2::!:~::.-t-----__ ~---=---=-.--:......_ ....... ~ICA~' ........f II rei) --::;'I"~=~..:--::-- r--__ --~"":......~ c -- -. -- ...._... , ~'J!jf~, ~"'4- >,,;0.. II/II I -'Jl'trJrr,:,="==-~"," --- -~...... ~:; .L J---iI K--+-_ h --~~~..::-;-...._ '<> I", \ 7"---1 11111 1 I U ........ ", y~~:;., ,1--'-.jJJrr--r-- 11--- ........""-....;:- ..-~'v~.\' A II/If' I ~ .. ..- /~~~';xX\ ~;f;' ~:/:. "~, 1'1,--- ,/ ~. \ ;;$' R...... I ,--- I" \ ...:. \ ___ I II ..- ,~?..-"'" , 1 "'=="''''==- ./~" _/",,'1' ~ , __ r-::::::====== ~~~~, ~ 1 I r--------- ..- II ' -- III " --tl~------- ;r---71 J I ~/l14 ~ \. /' I h ' ""- '/. //1 ~ , :..<<< ..- ;< ~ B 4>.~~~~ ^ ..... .....-e:.tlll.~..~"'" ~ ;' ..... '" .... ~JI!18t ~ .........'\:'. '..... ,.. \.' ..... '&1 i .... ......~~,~\, < ~, --,1>~ ~I\,~" ~... ;....~..... ;'. // ~~.... I ~ '...... \,..i:"-;........, 41 I #~ ' ~ ){.j...W7 ~~'~ ,/ /1/4 ~.~ 'x~~5,r'~ /~~'... -- "........-( ~ ;)f/'....., y ....,...., I I '4/ ~ ,,~ H A ~ --n Ili--$liJ?..-;it' ~..- ..-..-..-- '''' __ fl f ~=-= ' ......;;( '..... ,x... /f~~l/ ....,........ IlL___ <J. , _~Ul~~~ ...... 11111 '...... \ -,-,-T T-~ rr--1!I... ~$,"': 1 1 : : I I Il----r '"". ~J;=_J::'_J:":_J:"'_.I::".J ,U t--..... 1 -:"'--~-41-:"'--:' It--, "''f "( r ==t=~-=F.-I' II , I ...-t 1 I ,'" rr--,.-_~ -$,'" I' 'I"'n , I ~j' .I- 'l;J:rr---r---+ \.~.L.--I.;- - rj '.n J Y I ,Il~-- r-- r--r; 1 1 __-I L__I j II r--~ w Cf) ./ a:: -~~- ::> ~ ~ O~~ oi~ cpii ~ .... Z 0 15 ~ Ii G .J(<) ... .Juawpuaw'v' ueld l!eJaa 9 .lN3V\1H8"if.Ll "if ~II II i !f~ ' 11 15 ~g~ l!l !Q II a 311 1 I is I 1 1 I ! CondenseIt 1M Page 3 1 PROCEEDINGS 1 COMMISSIONER STRANGE: push harder. 2 COMMISSIONER STRANGE: n's 6:30 and a 2 COMMISSIONER ROY: NOW, it's working. 3 quorum is present. So we will call the Wednesday, August 3 COMMISSIONER STRANGE: All right. The 4 24th, 2005 meeting of the Planning and Zoning COIrunission 4 approval of the Consent Agenda passes by a vote of 7-0. 5 to order. And ask that you would join us in the Pledge of 5 6 Allegience to the flag. 6 7 (Thereupon, the Pledges of Allegiance were 7 8 recited.) 8 9 COMMISSIONER STRANGE: Mrs. Carpenter has 9 10 one announcement regarding the Agenda tonight. 10 11 MS. CARPENTER: Thank: you, Mr. Chairman. 11 12 Item 5A, the ADP for an office building on Lillian Miller, 12 13 ADP 05-0004 has been withdrawn by the applicant so you 13 14 don't have to hear it. 14 15 COMMISSIONER STRANGE: okay. I will make a 15 16 comment. We do have several items tonight as public 16 17 hearings. We do have a procedure here that we'd ask 17 18 you-all to follow. 18 19 If you wish to speak on any item at the 19 20 public hearing, either for or against the item, you will 20 21 need to have filled out a yellow card and have turned it 21 22 in at the front. And at the appropriate time we will call 22 23 you down and you will have your opportunity again to speak 23 24 in favor or against any item on the public hearing agenda. 24 25 MS. CARPENTER: unless they're the 25 Page 2 Page 4 I applicant. 1 COMMISSIONER STRANGE: We will now move 2 COMMISSIONER STRANGE: well, unless you're 2 into our public hearings. The first hearing is consider 3 the applicant. Then you've already paid to talk. You 3 making a recommendation to City Council concerning 4 don't have to fill out the card. 4 amendment to the detailed plan for a planned development, 5 Okay. The first item on the Agenda tonight 5 PD.173 zoning district for approximately 11.37 acres. 6 is approval of the minutes of our August lOth meeting. 6 Ms. Chewle. 7 COMMISSIONER WATKINS: Move approval of the 7 MS. CHEWLE: Thank you, Chainnan. The 8 minutes for August the 10th, 2005. 8 applicant is Robison Ranch Development, Argyle, Texas. 9 COMMISSIONER HOLT: second. 9 The subject property is generally located to the north n 10 COMMISSIONER STRANGE: We have a motion by 10 north of Robison Ranch and approximately 2,500 feet east 11 Mr. Watkins and a second by Mrs. Holt. Please, vote. And 11 of Florence Road. The subject property is currently 12 the vote passes 7-0. 12 vacant and is shown as open space in the concept plan. 13 The next item is our Consent Agenda. 13 The applicant is requesting an approval of 14 Planning and Zoning Commission had an opportunity to meet 14 the detailed plan amendment for Planned Development 173. IS with staff prior to tonight's meeting in a Work Session 15 The applicant is requesting to add 11.37 acres to the 16 which we had the opportunity to ask questions and explore ]6 detailed plan for an extension of golf course facilities 17 any items on the Consent Agenda. And so, therefore, we're 17 in the subject location. 18 looking for a -- well, I will ask for a motion for 18 The detailed plan was approved on February 19 approval of the Consent Agenda. 19 15th, 2000, which encompassed approximately 1,361.3 acres 20 COMMISSIONER HOLT: I move approval. 20 for Planned Development 173. This amendment will add 21 COMMISSIONER THIBODEAUX: second. 21 11.37 acres to the existing detailed plan increasing it to 22 COMMISSIONER STRANGB: I have a motion by 22 a total of 1,372.67 acres. The acres around the subject 23 Ms. Holt and a second by Dr. Thibodeaux. Any discussion? 23 site are used for golf course and single family 24 Please, vote. Mr. Roy, your button hasn't worked. 24 residential uses. 25 COMMISSIONER ROY: well, I'm pushing it. 25 The subject site is shown as open space in PLANNING AND ZONING MINUTES AUGUST 24, 2005 Page 1 - Page 4 Page 5 j Page 7 I the concept plan. The applicant is also requesting some 1 it's going to be like an open space? , 2 minor lot line changes -- some minor lot line changes 2 MS. CHEWLE: They already have this space 3 within the site. As you can see here, if you see ~ese . 3 -- okay. This is already golf course, these two, so they 4 dotted lines, this is where the original -- this is how 4 just want to extend these facilities over in this area. 5 the original detailed plan was approved. The portion here 5 That's what they want to do. 6 in this portion will be the amendment that has been added 6 COMMISSIONER ROY: okay. I guess I'm 7 .. is wanting to be added in the detailed plan that was 7 hanging up on the word facility, because the homes that 8 approved prior. 8 are there now are looking out over an open green area, and 9 They have made -- they're changing the lot 9 I just want to know if they're going to be looking out 10 lines -- lot lines in the detailed plan. And that is what 10 over a restroom facility or a building or something, that 11 their expectation is. Two legal notices were sent out and 11 it's going to be golf course type view. 12 staff did not receive any replies regarding this project. 12 MS. CHEWLE: From what we have been -- from 13 Per Section 35-181 of Chapter 35, Code of Ordinances, all 13 what staff bas been informed, it will be used for green 14 planned development shall be developed, used and 14 space as in golf course holes, whatever you call them. 15 maintained in compliance with the approved Concept Plan 15 COMMISSIONER ROY: okay. So it will 16 for the district. 16 continue to be an attractive thing -- 17 Planned Development 173 bas been designed 17 MS. CHEWLE: Yes. 18 to allow co-existence of residential, nonresidential, 18 COMMISSIONER ROY: -- to look out at, out 19 outdoor recreation and gas well operations. The proposed 19 to your back door. Okay. Do you know if those homes are 20 amendment to the detailed plan as submitted is compatible 20 occupied now? 21 with the Denton Plan and surrounding land uses. 21 MS. CHEWLE: NO. 22 This and the above findings, staff 22 COMMISSIONER ROY: They're not occupied or 23 recommends approval of the requested Detailed Plan 23 you don't know? 24 Amendment for Planned Development 173. If you have any 24 MS. CHEWlE: Tbey don't have any addresses 25 questions, I'll take them now. 25 and that is why we did not have any 500 feet notification. Page 6 Page 8 1 COMMISSIONER STRANGE: Anyone have any 1 COMMISSIONER ROY: Thank you. 2 questions of staff? 2 COMMISSIONER STRANGE: Anyone else have 3 Mr. Roy. 3 questions of staff? Okay. We'll open the public hearing. 4 COMMISSIONER ROY: I have a question or 4 Is the applicant here or do they wish to speak? Okay. We 5 two. Is the applicant going to speak? 5 have no cards on this item. Is there anyone bere who 6 MS. CHEWLE: I don't think he's -- they're 6 intended to speak on this item? We will close the public 7 here. 7 bearing. Do we have a motion on this item? 8 COMMISSIONER ROY: okay. Then I'll ask my 8 COMMISSIONER ROY: Move for approval. 9 question of staff. 9 COMMISSIONER HOLT: second. 10 COMMISSIONER STRANGE: okay. 10 COMMISSIONER STRANGE: I have a motion for 11 COMMISSIONER ROY: The current development 11 approval by Mr. Roy and a second by Ms. Holt. Any 12 calls for this to be open space as I understand? ]2 discussion? Please, vote. Okay. The next item -- hold 13 MS. CHEWlE: The Concept Plan calls it as 13 on a minute. The vote passes 7 to O. 14 open space. 14 15 COMMISSIONER ROY: open space, and they're 15 16 going to do something, they're going to put something in 16 I7 there? 17 18 MS. CHEWLE: They're going to put a golf 18 19 course. 19 20 COMMISSIONER ROY: Okay. Now, when you say 20 21 -- this says golf facilities. Are they going to put in, 21 22 like, buildings, golf-related buildings or is that going 22 23 to be greens and -- 23 24 MS. CHEWLE: It's going to be greens. 24 25 COMMISSIONER ROY: so it's going to be -- 25 CondenseIt TM PLANNING AND ZONING MINUTES AUGUST 24,2005 Page 5 - Page 8 S:\Our Documents\Ordinances\05\Z05..QOI7.doc ORDlNANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE 2000-059 TO ADD 11.37 GOLF COURSE ACRES TO THE DETAILED PLAN FOR THE PLANNED DEVELOPMENT 173 (PD-173) ZONING DISTRICT AND LAND USE CLASSIFICATION INCREASING THE TOTAL ACRES IN THE DETAIL PLAN FROM 1361.3 ACRES TO 1,372.67 ACRES; SAID PD-173 CONTAINS APPROXIMATELY 1361 ACRES AND IS COMMONLY KNOWN AS ROBSON RANCH; PROVIDING FOR A SAVING CLAUSE; PROVIDING FORA PENALTY IN THE MAXIMUM: AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTWE DATE. (Z05-00 17) WHEREAS, on August 3, 1999, by Ordinance 99-265 the City Council approved a change in zoning for 2,725 acres of land to Planned Development 173 (PD-173) zoning district, as more particularly described therein; and \VHEREAS, on July 17, 2001, by Ordinance 2001-247 the City Council approved an amendment to the Concept Plan of Planned Development 173 (PD-173) zoning district, as more particularly described therein, and WHEREAS, Devon Energy Operating Company, has applied for an amendment to the concept plan for Planned Development 173 (PD-I73) and the approval for a detailed plan containing 673.4 acres of land; and WHEREAS, on August 27,2003; the Planning and Zoning Commission concluded a public hearing as required by law; and recommend approval of the requested amendment to the concept plan and the approval of a detailed plan; and WHEREAS, the City Council [mds that the amendment to the detail plan is consistent with the Comprehensive Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Ordinance 2000-059, providing approval of the Detail PIan containing 1361.3 acres within the Concept Plan for Planned development 173 (PD-173) zoning district classification and use designation, is amended by the approval of this amendment to the Detail PIan for approximately 33 .65 acres attached hereto as Exhibit "B" and incorporated herein by reference, and more particularly described in Exhibit "A", which is attached hereto and incorporated herein by reference. The amendment adds 11.37 acres to the approved Detail Plan and makes some minor lot line changes to the remaining 22.28 acres within the approved Detail Plan SECTION 2. The provisions of this ordinance as they apply to the amendments herein approved, shall govern and control over any conflicting provisions of Ordinance 2000-059, but all the provisions of Ordinance 2000-059 as they apply to the regulations of the district not herein amended, shall continue in force and effect and shall apply to the remainder of said district. Page 1 of2 S:\OUf Documents\Ordinances\05\Z05-o0 17 .doc SECTION 3. A copy of this ordinance shall be attached to Ordinance 2000-059 showing the amendment herein approved. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision ofthis ordinance is violated shall constitute a separate and distinct offense. SECTION 6. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton., Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the ' day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWINM. SNYDE ITY ATTORNEY BY: Page 2 of2 EXHIBIT - A All THAT CERTAIN LOT, TRACT, OR PARCEL OF LAND SITtJATED IN THE M. SCURLOCK SURVEY, ABSTRACT NUMBER 1141, IN THE CITY OF DENTON. DENTON CQUNTY, TEXAS, AND BEING PART OF THAT TRACT OF lAND DESCRlBED IN A WARRANTY DEED FROM GAl FARLEY BOYS RANCH TO ROBSON DENTON DEVELOPMENT, L.P., AS RECORDED IN VOLUME 4373, PAGE 216 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS. COMMENCING AT A 112." IRON ROO FOUND FOR THE APPARENT SOUTHEAST CORNER OF $AlD Iiil. SCURLOCK SURVEY AND FOR THE MOST SOUTHERLY SOUTHWEST CORNER OF A TRACT OF LAND DEEDED TO HILlWOODlMcCUTCHIN L TO. AS RECORDED IN VOLUME 24m, PAGE 676 OF SAID DEED RECORDS, DENTON COUNTY TEXAS; THENCE NORTH 64'29'51" WEST 8619.09 FEEfTO A 112" IRON ROD FOUND FOR CORNER SAID ROD BEING THE MOST EASTERLY NORTHEAST CORNER OF PENDING ROBSON RANCH SECTION 8-2; THENCE ALONG THE NORTH LINE OF PENDING ROBSON RANCH SECTION 8.2 AS FOLLOWS: NORTH 64.47'40" 80.01 WEST 80,01 FEET; NORTH 87'46'52" WEST 18.71 FEET; NORTH 85"08'24. WEST 81.61 FEET; THENCE NORTH 79'36'43" WEST 188.58 FEET TO A 112" IRON ROO FOUND FOR CORNER, SAID ROO BEING THE MOST SOUTHERLY SOUTHEAST CORNER OF LOT 1, BLOCK A. ROBSON RANCH GOLF COORSE a, PHASE 1 {IS RECORDED IN CABINET "U", PAGE 339, OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS, AND BEING lHE POINT OF BEGINNING OF THIS SURVEY; THENCE SOUTH 63"33'37" WEST 84.99 FEET AlONG THE SOUTH LINE OF SAID LOT 1, BLOCKA, ROBSON RANCH GOLF COURSE B, TO A 112" IRON ROD FOUND FOR CORNER; THENCE NORTH 87"21'50" WEST 139.84 FEET TO A 112' IRON ROO FOUND FOR CORNER. SAID CORNER BEING THE MOST wesTER!.. Y SOUTHWEST CORNER OF SAID lOT 1, BLOCK A, ROBSON RANCH GOLF COURSE B; THENCE, DEPARTING THE SOUTH UNE OF SAID LOT 1, BLOCK A. ROSSON RANCH GOLF COURSE e. NORTH 01 '36'59. EAST 14.77 FEET TO A 1/2" IRON ROD SET FOR CORNER; THENCE NORTH 41.48'39" WEST 617.36 FEET TO A 112' IRON ROD SET FOR CORNER; THENCE NORTH 89'48'56. WEST 416.54 FEET TO A 1/2" IRON ROD SET FOR CQRNER; THENCE NORTH 00.07'11' WEST 238.51 FEET TO A 1 i2" IRON ROO SET FOR CORNER; THENCE NORTH 05'37'54" WEST 96,97 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE NORTH 25'17'58' WEST 101.25 FEET TO A 112' IRON ROD SET FOR CORNER; THENCE NORTH 18'22'32' WEST 70]0 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE NORTH 07'07'41" EAST 70_00 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE NORTH 35"31'12. EAST 432.15 FEETTO A 112~ IRON ROD SET FOR CORNER; THENCE NORTH 49.48'38' EAST 267.01 FEEl TO A 112'1RON ROO SET FOR CORNER; THENCE NORTH 51'44'26" EAST 462.13 FEET TO A 112' IRON ROD SET FOR CORNER SAID CORNER BEING THE MOST NORTHERLY NORTHWEST CORNER OF THIS TRACT; mENCE SOUTH 39'23'26" EAST 365.50 FEET TO A 112c IRON ROO SET FOR CORNER; THENCE SOUTH 39'1T10' EAST 460.52 FEET TO A 112" IRON ROD SET FOR CORNER; ruENCE SOUTH 73'14'36" EAST 152.11 FEET TO A 112" IRON ROO SET FOR CORNER; THENCE SOUTH 70'49'15" EAST 139.58 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 63.17'46" EAST 145.61 FEET TO A 1/2 ROO SET FOR CORNER AT BEGINNING OF A NON-TANGENT CURVE TO THE LEFr: THENCE IN A SOUTHWESTERLY DIRECTION, ALONG SAID NON-TANGENT CURVE TO THE LEFT, HAVING A RADIUS OF 2945.00 FEET, A DELTA ANGLE OF 5"59'52". AND WHOSE LONG CHORD BEARS SOUTH 22"43'24" WEST 308.14 FEET. AND HAVING AN ARC LENGTH OFJ08.26 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE NORTH 69'27'41" WEST 460.13 FEETTO A 112" IRON ROD SET FOR CORNER: THENCE SOUTH 56"38'36" WEST 150.16 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 45.40'26" WEST 76.40 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 56"38'36" WEST 150.00 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 33"09'46" EAST 114.97 FEET TO A 112" IRON ROO SET FOR CORNER; THENCE SOUTH 56"50'12' WEST 50.00 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 33"23'47" EAST 10.10 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE sollrn 56"50'12' WEST 142.61 FEET TO A 112" IRON ROD SET FOR CORNER; THENCE SOUTH 33'O9'~" EAST :;46.12 FEET TO THE POINT OF BEG I NNl NG AND CONTAINING 33.65 ACRES OF LAND MORE OR LESS. ~ .i;!i.~...r; I i I ! ~ i ~ I il ~ i i 'm " '" ! I 8 ~ i I 01: ! I ~j i I @) i liB ~ ~~gl I i Ilf i~ , i.>i;.~ ~~~). ..!~d Ibl d ~~hl~ ~i n nll~ fail h~ ~~ B - ~IBIHX51 i ... l ~ >- ~ ~ -, ~ I " $ . ~ -~~~. " Q ~ :;:! ~~~" j~ ffi~~ ~s ~;~ g~U ~!~ ~~~! ~i~ ~~ ~ ~!!g~: ! ~ ill ~ i!l5 ,i~IU ~~ 0 ~:lf.~ ~~ ~ 1<' ~ ltil ..ilb ~~ S1l' g oi~ !Ir md" ...~~" ~'i~ !tI~ ~il: r AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Planning and Development Departmept CM/DCM/ACM: Jon Fortune, Assistant City Manager SUBJECT - Z05-0020: (Glenwood Meadows) Hold a public hearing and consider adoption of an ordinance approving the zoning of 95.16 acres from Neighborhood Residential (NR-2) to Neighborhood Residential (NR-6) with an overlay district. The property is located in Tract 4A of the William Roark Survey and Tract 11 of the J Edmondson Survey and is generally located on the east side of Bonnie Brae, 1,300 feet west of US 377, and 2,800 feet south of Roselawn Drive. Planning and Zoning Commission recommends approval. (7-0) BACKGROUND Applicant: Wally Creel, Holigan Land Development Dallas, TX The applicant requests the rezoning of the property to NR-6 zoning with an overlay district. The property abuts NR-2 single-family residential neighborhoods to the north, NR-6 to the south and PD-139 to the west. To the east of the subject site is City of Denton Extraterritorial Jurisdiction (ETJ). A chart showing the comparison between the existing NR-2 and the proposed NR-6 is provided in the Staff Analysis section. The requested overlay district includes the following development standards: . The development will consist of single-family detached homes only. . Density will be capped at 2.29 dwelling units/acre for the 95.16 acres. The applicant requested NR-6 in order to utilize the side setbacks (four feet) of that zoning district. Approximately 35 acres of the property are developable. The balance of the acreage is located in the flood plain. An Environmental Alternative Development Plan (EADP) ADP05-0004 is pending on this site that would allow an additional 12 acres to be developed. The density and land use of this property are the same in both the EADP request and the rezoning request. Public notification information is provided in Attachment 3. As of this writing, staff has no responses from property owners within 200 feet of the subject site PRIOR ACTIONIREVIEW Zoning Case Z04-0037 was heard before the Planning and Zoning Commission on October 13, 2004. The Planning and Zoning Commission recommended approval of the request to rezone the subject property from NR-2 to NR-3. The Council considered this Case Z04-0037 on November 16, 2004 and tabled it. This new case Z05-0020 responds to the issues raised by the Council. OPTIONS 1. Approve as submitted. 2. Deny. 3. Postpone consideration. 4. Table item. RECOMMENDA TION The Planning and Zoning recommends approval of the request (7-0). ATTACHMENTS 1. Staff Analysis 2. Maps 3. Publi c N otifi cati on (Property Owner N otifi cati on Map) 4. Site Photos 5. Letter of Intent 6. P&Z Minutes of August 24,2005 7. Ordinance J>repar~(lby: .~ ... ................................................................................. Lori Shelton Planner II Respectfully submitted: ~~ Kelly Carpenter, AICP Director of Planning and Development 2 ATTACHMENT 1 Staff Analysis Summary of Zoning Request The applicant is requesting the rezoning of approximately 95.159 acres, currently zoned NR-2 to a NR-6 zoning district with an overlay district. The property is generally located on the east side of Bonnie Brae, 1,300 feet west of US 377, and 2,800 feet south of Roselawn Drive. Existing Condition of Property The property is currently undeveloped. Adiacent zoning and land uses. North: South: East: West: NR-2 (Undeveloped) NR-6 (Undeveloped) ETJ (Undeveloped) PD-139 (Developed Single Family - The Vintage) Comprehensive Plan Analysis The subject site is located within the "Neighborhood Centers" future land use area. These areas may develop in conventional patterns or may be developed in a pattern of 'neighborhood centers'. Neighborhood centers are oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to-day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school. The request to rezone the subject property is compatible with the Future Land Use Plan and with the surrounding zoning designations. The proposed zoning change is in compliance with the Denton Plan. Development Review Analysis Access and Capacity A Traffic Impact Analysis (TIA) will be required at the time of platting. Because Bonnie Brae is an unimproved roadway, all approved/currently proposed developments, north of Vintage Blvd, with frontage on Bonnie Brae are servicing to the south to Vintage Blvd. and therefore not being required to improve Bonnie Brae. Any access to Bonnie Brea by this development will require construction of Bonnie Brea to a minimum of 25ft width of pavement, ROW dedication and sidewalk from at least the most northerly access point to Vintage Blvd. Therefore, it is recommended that this development access through the development to the south on proposed roadways that access to Vintage Blvd. 3 Public Infrastructure According to current GIS data, an eighteen (18) inch sewer line runs along a portion of the northern border of the subject site. A twenty (20) inch water line runs along a portion of the northern border and continues south along the western border of the site. Development Code / Zoning Analysis The NR-2 zoning district allows a maximum density of 2 dwelling unites per acre. The NR-6 zoning district allows a maximum of 6 dwelling units per acre. However, the proposed overlay district will limit the uses to detached single family and the density to 2.29 lots per acre. The chart below illustrates the differences between the two zoning districts. General Regulations I Existing Zoning I Proposed Zoning NR-2 NR-6 with overlay Maximum Density, dwelling units per 2 2.29* acre Minimum front yard setback 20 feet 10 feet Minimum side yard setback for non- 10 feet 4 feet attached buildings Minimum rear yard setback 10 feet 10 feet Maximum Lot Coverage 30% 60% Minimum Landscaped Area 70% 40% * indicates standard provided by overlay district 4 ATTACHMENT 2 Maps NORTH LOCATION AND ZONING MAP FUTURE LAND USE MAP 5 ATTACHMENT 3 Public Notification Scale: None Newspaper Notification Date: August 14, 2005 Percent of land within 200' in opposition: 0% 200' Legal Notices* sent via Certified Mail: 25 500' Courtesy Notices* sent via 151 Class Mail: 34 In Favor: 0 Opposed: 0 Neutral: 0 ATTACHMENT 4 Site Photographs Looking east from Bmmie Brae 7 ATTACHMENT 5 Letter of Intent IfaltJIllDEVELOI'IfENr. LTO. August 23, 2005 Lori Sholton City of Denton Planning Departmmt 221 NmthBlm Denton. TBUB 76201 Rc: Letter ofIntcnt for ZouiDg Chaoge Dear Lori: Holism Land Developma1t would like to Rc-Zonc from NR-2 to NR-6 (with an overlay to restrict density at 2.291ots per acre). Glenwood Meadows (ZOS-0020). Thaok you. ~ Project Analyst HoJipu. Land Developma1t 15950 North o.nu Pldtway . SaItIi 750 . DaIas, 'lbas 75248 . 972-387.1999 Ezt.103O . !112-317-I6B5 &x Page 65 Page 67 1 COMMISSIONER STRANGE: The next item is 1 MS. SHELTON: well, it's the PD-139, yes, 2 consider making a recommendation to the City Council 2 sir. 3 concerning the rezoning of 95.16 acres from Neighborhood 3 COMMISSIONER ROY: okay. But this will be 4 Residential 2 to Neighoborhood Residential 6, NR-6 with an 4 -- this will be new Code requirements? 5 overlay district. Ms. Shelton. 5 MS. SHELTON: Absolutely. 6 MS. SHELTON: There we go. Good evening. 6 COMMISSIONER ROY: okay. Thank you. 7 This slide shows the location of the subject property. 7 COMMISSIONER STRANGE: Any other questions? 8 You can see Rose Lawn is far to the north of the map. You 8 This is a public hearing. We will open the public 9 can see 1-35 and the Vintage Development there to the 9 hearing. Is the applicant here and do they wish to speak? 10 west. The zoning map shows the current zoning is NR-2 10 MS. THURMAN: Hi. My name is Elsie Thunnan Il with NR-2 to the north, NR-6 to the south and the PD-139, Il and I'm here representing Holigan Land Development. And 1 12 which includes the Vintage Development to the west. 12 prepared a brief presentation, however .. and I'm happy to 13 The future land use map shows the subject 13 go through it, however, if you would just like to ask me 14 property and all surrounding property as being in the 14 questions, I'm happy to do that, too. 15 Neighborhood Center designation. This is the aerial of 15 COMMISSIONER STRANGE: Does anyone wish to 16 the subject property. You can see an existing gas well 16 see the presentation or would we like to just answer 17 there on the west side and the notification map shown here 17 questions? Mr. Roy. 18 -- we did not receive any response from property owners in 18 COMMISSIONER ROY: well, I would just like 19 the surrounding area. 19 you to explain the overlay, what your objectives are and 20 This paragraph is taken from the northern 20 what you're trying to accomplish. That would satisfy me, 21 border of Bonnie Brae looking south. And finally, we come 21 but I'd be happy for -- 22 to the overlay district which is proposed as part of this 22 MS. THURMAN: I'm sorry. Sure. We went 23 zoning. The development standards of the proposed overlay 23 with the NR.6 with an overlay to cap density meaning that 24 district include the development will consist only of 24 we could only build so many lots. 25 single family detached homes. And the density will be 25 COMMISSIONER ROY: you're going to build Page 66 Page 68 I capped at 2.29 lots per acre for the entire 95.16 acres. 1 less than what the NR-6 permits? 2 Now, as some of you may recall, the 2 MS. THURMAN: Yes, sir. 3 previous zoning request on this site was to rezone from 3 COMMISSIONER STRANGE: IS that primarily 4 NR-2 to NR-3 with an overlay district that allowed four 4 because of the flood plain? 5 foot side yards. The City Council had concerns about 5 MS. THURMAN: partly, yes. 6 allowing an overlay district which provided additional 6 COMMISSIONER STRANGE: And the gas well? 7 rights, which in this case would be the reduced side yard 7 MS. THURMAN: That part I'm not sure. Is 8 setbacks. And this is why the applicant has requested the 8 itn 9 NR-6 zoning which allows the four foot side yards and an 9 MS. BUSH: Yes. 10 overlay district that restricts the density. And I'll 10 MS. THURMAN: Yes. 11 answer any questions. 11 COMMISSIONER STRANGE: so if you look at 12 COMMISSIONER STRANGE: Anyone have any 12 the developable part of the -- if you look at the I3 questions of staff? Mr. Roy. 13 developable portion of the property only not giving any 14 COMMISSIONER ROY: This is a new 14 credence to the gas well or the flood plain, you are at 15 development or is this an extension of the existing 15 the NR-6 density? 16 development in the area? 16 MS, BUSH: MY name is Mary Bush and I'm 17 MS. SHELTON: No. This is a new 17 also with HaUgan Land Development and 1 think I can 18 development. 18 answer your questions. The reason we are asking to cap 19 COMMISSIONER ROY: So everything thatfs 19 density is because of the significant amount of flood 20 going to be built there will be built according to our 20 plain on this property. So by all practical purposes, 21 Codes? 21 we're limited to the number of lots that we can build. 22 MS. SHELTON: Correct. 22 The density, if we build only on the flood 23 COMMISSIONER ROY: And the development 23 plain is still within the limits of NR-6, however, we are 24 thatfs across the street there was not built per Code, 24 not going to build six units per acre on the small amount 25 right? That was a PD of -- 25 of non flood plain acreage that we have. Does that answer CondenseIt TM PLANNING AND ZONING MINUTES AUGUST 24, 2005 Page 65 - Page 68 CondenseIt'I'M Page 69 Page 71 1 the question? 1 COMMISSIONER WATKINS: okay. That brings 2 COMMISSIONER STRANGE: Maybe you ought to 2 up another question because I don't see Vintage Boulevard 3 restate that. I don't know that I understood that. 3 at either end. It's not started. 4 You're not -- you're not building NR-6 on the land that 4 MS. BUSH: And Kelly do you want to -- 5 you have available? 5 COMMISSIONER WATKINS: And there's a gas 6 MS. BUSH: The only reason that we have 6 well across the street from the Vintage Housing 7 requested the NR-6 zoning category is so that we can have 7 Development. 8 the four foot side setbacks. 8 MS. BUSH: .. address the schedule of 9 COMMISSIONER STRANGE: side yards is it? 9 construction for that? 10 MS. BUSH: correct. That's the only 10 COMMISSIONER STRANGE: MS. Carpenter, can 11 reason. 11 you help us with that? 12 COMMISSIONER STRANGE: okay. And what 12 MS. CARPENTER: Mr. Chairman, the access 13 density are you developing to on the developable acreage? 13 issues will be resolved at the time of platting but there 14 MS. BUSH: The developable acreage right 14 is a plan to do the construction of Vintage that involves 15 now is approximately 35 acres. It's 34.72, I believe. We 15 the developer of the Vintage and the City of Denton. And 16 do have a pending request to try and reclaim an additional 16 the piece that runs in front of the fire station which is 17 12 acres. That is an ESA, an alternative development plan 17 east of this piece will be constructed by the fall of '06, 18 that is being reviewed by staff right now. 18 so the access to this project will also be in place by the 19 Even if that is approved, we will not build 19 fall of '06 on Vintage. 20 any more lots than we are requesting in this zoning 20 MS. BUSH: And I believe and I know this is 21 request. So on the 35 acres, I believe the density is 6.2 21 probably also a platting issue, but we have also agreed 22 lots per acre; is that correct, on the 35 acres. If we 22 that if we use Bonnie Brae as temporary access into our 23 reclaim the 12 acres to bring it to a total of 46 or 23 property, we will be required to construct the part from 24 approximately 46, then our density is 4.64 lots per acre. 24 Vintage Boulevard to Bonnie Brae, that little curve of the 25 COMMISSIONER STRANGE: okay. So then 25 road. Does that make sense? Page 70 Page 72 1 again, you're back to the primary reason for your overlay 1 COMMISSIONER WATKINS: I hope you have 2 is to get the four foot side yards? 2 four-wheel drives. 3 MS. BUSH: Absolutely. And that was 3 MS. BUSH, We can probably look at-- 4 suggested at the last Council meeting. 4 should we look at the concept plan or -- 5 COMMISSIONER STRANGE: Mr. Watkins. 5 COMMISSIONER WATKINS: so presently to 6 COMMISSIONER WATKINS: Thank you, Mr. 6 access the site, you would come from the north down 7 Chairman. How do you get there? I went down 377 and 7 Hickory Creek and cross the bridge and approach it from 8 turned on to Bonnie Brae and it's all blocked off and it 8 the north? 9 says no through traffic. So I went on to Argyle and got 9 MS. BUSH: Yeah. Where's the little mouse? 10 on 35W and came back to the Ponder exit, the Vintage, and 10 COMMISSIONER WATKINS: And I have a truck 11 then I recalled that we closed the road at the end of the 11 so .. 12 Vintage, the one with the barrels that you could -- 12 MS. BUSH: Here we go. Right here is where 13 MS. BUSH: The plan for access -- 13 Vintage doesn't quite connect to Bonnie Brae. It turns 14 COMMISSIONER WATKINS: -- put in the holes. 14 into a dirt road at that point. 15 MS. BUSH: I'm sorry, sir. Go ahead. 15 COMMISSIONER WATKINS: Yes. 16 COMMISSIONER WATKINS, DO what? 16 MS. BUSH: And for n until Vintage goes on 17 MS. BUSH: The plan for access to the 17 across and we can connect at these points down to the 18 development is through eventually to the south where there 18 south, then we would do some minor improvenlents to Bonnie 19 are .- there's a planned subdivision to the south that has 19 Brae, which the City has told us what we need to do to 20 three entrances that our plan will connect to. It depends 20 allow access into the subdivision right here, but we will 21 upon the construction of Vintage Boulevard continuing on 21 not be accessing from the north. 22 to n is it to 377, Kelly? So we are depending on the 22 COMMISSIONER WATKINS: All right. Thank 23 construction of Vintage Boulevard to provide some access 23 you. 24 to our development. Bonnie Brae will not be the primary 24 COMMISSIONER STRANGE: Any other questions 25 access point to our development. 25 of the applicant? Okay. Thank you very much. The only PLANNING AND ZONING MINUTES AUGUST 24,2005 Page 69 - Page 72 Page 73 Page 75 1 two cards we had speaking for this were the two speakers 1 Code. 2 we just had, Ms. Bush and Ms. Thurman. Is there anyone 2 MR. SNYDER: Mr. Chair, members of the 3 else who wishes to speak for or against this item? Seeing 3 Commission, before you is an amendment to Subchapter 16 of 4 none, we'll close the public hearing. Do we have a motion 4 the subdivision regulations and they address several 5 on this item? Mr. Roy. 5 amendments. One of them is -. change the predesigned 6 COMMISSIONER ROY: I wanted to ask a 6 conference to preapplication conference. The other is to 7 question of staff if I may. You indicate that there's no 7 provide for completeness of application provisions. 8 response from the legal notification and the 100 foot 8 Next is to deal with the expiration tenns 9 mark, there's residences there, but most of those are 9 of the preliminary plat and the general development plan, 10 empty. 10 and the final item deals with more explicit provisions 11 MS. SHELTON: we got a lot of letters back. 11 concerning the provision of water and waste water 12 COMMISSIONER ROY: so there's nobody there 12 services. These are before you tonight. These are 13 to comment. But if you go out to the 500 foot buffer, 13 amendments to the subdivision regulations and not the 14 there are people who are living there, and when you say 14 zoning regulations of the City. 15 there's no response, does that mean there's no response ]5 COMMISSIONER STRANGE: DO we have any 16 from anybody -- 16 discussion or any questions of either staff or legal? 17 MS. SHELTON: From anyone. 17 This is a public hearing. There are no cards. There is 18 COMMISSIONER ROY: n or is it just the 100 18 no one in the auditorium, so I'm assuming that no one 19 or 200 foot? 19 wants to speak on this. So we will open the public 20 MS. SHELTON: NO, I got nothing. 20 hearing and we'll close the public hearing. Any 21 COMMISSIONER ROY: okay. 21 discussion? Mr. Watkins. 22 MS. SHELTON: In fact, I had one phone call 22 COMMISSIONER WATK[NS: Move approval of 23 from the sign, and I described what was happening, and it 23 S[-050021. 24 was a concern over the access, and that was the only 24 COMMISSIONER STRANGE: We have a motion by 25 response I had at all. 25 Mr. Watkins. Do we have a second? Page 74 Page 76 ] COMMISSIONER ROY: okay. Thank you. I COMMISSIONER ROY: second. 2 COMMISSIONER STRANGE: AnY other discussion 2 COMMISSIONER STRANGE: okay. Mr. Roy, you 3 or do we bave a motion? 3 had your light on. Did you have a question, or I guess we 4 COMMISSIONER HOLT: I move approval. 4 can continue on. Do we have any discussion on this item? 5 COMMISSIONER STRANGE: we have a motion by 5 COMMISSIONER ROY: NO, I do not. 6 Mrs. Holt. Do we have a second? 6 COMMISSIONER STRANGE: The only comment I 7 COMMISSIONER ROY: second. 7 would like to make is a couple of comments. I know that 8 COMMISSIONER STRANGE: second with Mr. Roy. 8 we're entertaining these ordinances to bring our Code and 9 Any discussion? If not, please vote. Mr. Roy, you 9 ordinances up to standards. I do see that we are putting 10 haven't registered. There you go. Okay. Vote passes 10 some time frames and some constraints on applicants that 11 7-0. 11 we have not had before. I hope we have put the proper 12 This will be the final item tonight. If 12 time frames in there and the proper penalties for people 13 anybody's been here waiting for SA, I think we announced 13 who have not -- who do not conform to those. I think we 14 earlier, that's gone. So if you're still here, you can 14 have depended on outside counsel for that. So I hope 15 leave on that. 15 that's all com;ct. 16 We're here not to discuss Item E, which is 16 Also, I have a little concern about the 17 consider making a recommendation to the City Council 17 reading of some of this, the language in here. It does 18 concerning the adoption of the ordinance amending the 18 refer you on to other places that you have to read to get 19 City's Platting and Subdivision Regulations contained in 19 answers. I think there needs to be some clarification in 20 Subchapter 16 and Subchapter 21 of the Denton Development 20 here as it relates to some of those other things such as 21 Code, Chapter 34 of the Code of Ordinances and the 21 water and sewer and utility connections. Some of that 22 applicable criteria manuals. Ms. Carpenter. 22 language is not clear to me without referring to other 23 MS. CARPENTER: Mr. Chainnan, I would like 23 places. 24 to pass the baton here to Mr. Snyder to address the 24 And when I read there, sometimes that's not 25 amendments to Subchapter 16 of the Denton Development 25 very clear. This particular modification to our CondenseIt 1M PLANNING AND ZONING MINUTES AUGUST 24, 2005 Page 73 - Page 76 ATTACHMENT 7 Ordinance S.'\Oor~..Q02O.doc ORDINANCE NO. AN ORDlNANCE OF THE CITY OF DENTON. TEXAS. PROVIDING FOR A ZONING CHANGE OF APPROXIMATELY 95.16 ACRES FROM NHlGBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICf CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL 6 (NR-6) WITH AN OVERLAY DISTRICT GENERALLY LOCATED ON THE EAST SIDE OF BONNIE BRAE. 1.300 FEET wEsT OF us 377 AND 2.800 FEET SOUTH OF ROSELAWN DRIVE LOCATED IN TIm WILLIAM ROARK SURVEY ABSTRACT NUMBER. 1087 AND TIlE 1 EDMONDSON SURVEY, ABSTRACf NUMBER 4OO.IN TIlE CITY OF DENTON. DmITON COUNTY, TBXAS; PROVIDlNG FOR A PENALTY IN TIlE MAXIMUM AMOUNT OF 52.000.00 FOR VIOLATIONS THBREOF; PROVIDING A SEVERABILlTY CLAUSE AND AN EFFECTIVE DATE. (ZOS-0020) WHEREAS. Wally Creel, Holigan Land Dcvc10pmcnt ftlitilted . c1umge in zoning for approximately 95.16 acres of land particularly descn"bcd in Exhibit "A" attaohed hereto and made a part hereof as Exhibit "A" (the -propertyj from Neigbbozbood Residcntia12 (NR-2) zoning district cll1l1l1ification and use designation to Neigbbozbood Residentia16 (NR-6). wi1h aD overlay district; and . WHEREAS. on August 24. 2005. ~ PImming and Zoning Cmnmiuitm concluded a public heariDg as rcquiml by law. and ~mended approval of1he requested chanec in zoning; and WHEREAS. 1b City Council makes the following findings: a. The ohange in zoning, including the overlay district, is comisteat with the Comprehcmive Plan; and b. The overlay district will protect and CDbancc the Property and Sl.II'lODIldiDg area. which are distinct from laads 8Dd structures autBide of 1he overlay district and the irnmMiate Dfighborhood; aod c. The replatiom imposed in the overlay district serve important and substamial public intm::sts by preserving, the integrity of the neigbboIbood. SUlJl'mmn.g the overlay district while ofl'ering a different type of residential home to the public and the ncighbmhood; NOW. THEREFORE, TIlE COUNCIL OF THE CITY OF DENTON HBRBBY ORDAINS: SECTION 1. The findingp. and recitations contained in the preamble of1his ordinaoce are iJwmponted herein by reference. SECTION 2. 'I'he zoning district classification and use rlMipons of the Property is hereby changed :from Neigbborhood Residential 2 (NR-2) zoning distriot olassification and use delrig,nmon to Neigbborhood Residential 6 (NR-6) zoning districts 8Dd use dP.lrigJllrtions. with and overlay district (the "Overlay District") containing the following l'CgI11lJtiom: a. Only single family detached land use is permitted. b. The maximum density is 2.29 dwelling units per acre on the entire 95.16 acres. The above regulations shall control within the Overlay District over any conflicting regu1ationA for the NR-6 district contained in the Denton ~eve1opmeut Code. SECTION 3. The City's official zoning map is amended to show the change in ZODing district classi.fication. SECTION 4. If any provision of this ordimmce or the application thereof to any person or clrcumstance 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 S. Any person violating any provision of this ordinance sball, upon oonviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. That this ordirnmce sball become effective fourteen (14) days ftom the date of its pass~ and the City Secretary is hereby directed to cause the caption oftbis ordinance to be published twice in the Denton R.ecord-Chronic1e. a daily newspaper published in the City of DentoD. Texas, within ten (10) days of the date of its passage. , PASSED AND APPROVED this the . day of . 2005. BULINB BROCK, MAYOR ATI'BST: JENNIFER WALTERS. CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYD CITY ATTORNEY BY: EXHIBIT"A ~ DalHIJoIIIIIe 8neJaIIIt V.mft Up):o.atptlIII Glleadl 15 . 1.5, aa_ .:L~ed :l.n t:mI if. IIDIICI!Il!Ol' SUIl'IBY. Abft.. IJO. <1.00, 8. A. nn~ SllR'lft, lINt. lID. 100" ud thII IfILL:wt IIIlWUt stIRVIT. lIboIt. Ho . 101'1', Dent.oll 0I:IImt:y. '1'szu l:lIIiug that Cllrtaill tacl: of lUll! ~ 1;0 ... Ti_ :tilV..~t. ~iarl1. by deed ~ in vo1_ 13". hip n2t O!*I ~I.~ ~t:y'. --. N~ '5.15' acrto. _1111' __ ~1GIlI.m:1Y OIlllllr1.O..:l, .. foll_, ~ K .. 1 :l.IlCIl ~ foImll. at tile -.t: ..~ly aaft!IlNlIt corM%" oe.dd ..., tiDe %l:lVu~. Caz1:Ioftticm. ttaOt. pid peWIt bGDg thll!l caUm ~.t: _ of H14 ~ 8lIIlVII'!"1 'l'lIIM:S alOZli'_~ north 1:lDa ot" .d4... ~ ~ ~tion tnat. .. :5'l1lllW' 8llI1th 811 ~. JlI IIlbmI:d 13 HQOII&I ...t I ~iIIa C!lIl ZIGrth IIDd ~ tlDH o! IcIID:La ~ IiIt_t, ani! aont1DlU.llS, IzL an. 257.H &ft ta .. 1/2 :lIICII. ban :faaDI!! If=t:b. '1'6 ~ 40 ___ I' .~ "'t.. 240." fMt. t.o.. a.R. _.. 1;1. fOWld, ~ 14 ~ D!I aiwta. 37 .1ICCIDdI. ....t. 64.19 t_ 1;0 .. It.R. _ t:!.. fiNaIll ~ 81 agn.. 06 IlliDut_ 51 ........s. ".t, "'.26' fIIat. to .. 1/1 iagb iftIn fGPad, Iwtb 05 ~.. :aa lIiDub. 01 H=aoH B&IIt. 20.11 f_ to .. 1/2 :lZIda :1.-. fCilmo1r Ioa.tb " 4oognou n 1lI!mIe.. 01 MCaDdII _. n.10 1'_ to a a.R. CI!!llI. tw COIDIII, .' IIQrth 13 a.gna. 37 m..ur.e. 0<1. IICOIII1. _t, 13.:15 ~ 1/2 inch im:a. faIIDtl, IICrZ'th 11 ~ 31 __t.. 4.3 .aocrud. "'t. '" .27 fnt 1;0 .. 17 izeb. .1m tzeI t"OUZI4, .ofth 402 __ 27 ad.mI.t_ 51 .~ _I:, 111." fIIat to a 2 iI1ab ~ fOund lit tbII _t aorthKly ~ or Il&id - Ta. I1rWIIIblllltl ~tioD tnc:t1 9r:ruth 12 -.n- .., 1IiIIut.. 31 HCClIl4I BUt. 600.57 fel!lt 1:0 .. It.R. lD:OII. t1lr fllODllll sOUl:b.13 ____ 52 maul:ell 540 IlIOOZ1d11 IIDt. 405." feet; t.O .. 240 1Zlllh bacld:l.:=y trM fcIaDd" 9oW:;b.' 89 ~ 21 1Ili1ll1t111 01 HClI:IDdII ...e. ..t 623.111 fHt pudlllf .. 31 meh p&ClIIl t_ fawIlI. IIIId _1mJ:l.IIg. in aU. 7:11.1'1' fHt to t.IlIi _It ~1y m>rt:bHR corner of ..~ ... '"- %aft~. OIxpaftt.iar. t_. .1I1d pa:lDt. baDer in thII ~ CIIDtU'l.:l.ao of IUczkDEy enllk, i:.~0l!I/iJ th e.wnad-I:a _tm:l~ of ...~ IU.d<oq cre.k. .. llav.th 03 ~ a ..wu:u 4i2 8lll>I>ZIU ".lIt, 1.10 telll:l loath 11 ~ 5111i1luee. 1'1' IICIlIl4II ....t. 11'1'.111 hE, ISwtll 08 ~ 13 llliaatml 10 .1llOIIdII ....t. 131.33 ftllt, lSr:rutll 251 ~ &2 lIiav.t.. 211 ~ ....t 81.551 !tiKI ISwtb. 35 ~ 26 lIiaut.. 411 _aD411 "'t U.02 f.Kj Sailtb. !!i8 ~ O!I IlliDUtlI. 18 IllIClcmdll "'t, 17.412 fMt; SOIld:l U ~. Z2 miDw:H 20 RGOOdll ...t. n.05 fest, lIoRJI IS ~. 12 IIlntH 0lI _000. "'t. ".5'1' fest.; lIoRJI U~. oW mizlu.t.U 53 _CIIlIlUI BUt.. S'.4S t"Mt, IIort:b. Iii ~ " ~. 11 IUCCIIII&l ...~. 51]." fest, !IOrI:l:z. :iII1 __ 18 ___ :It -..dII ".1:. 22.'1"1' flHt., IIzt!I. 71 ~_ 51 IIiD:a.tlII 4i4 MOCIIlIIII ".t. 51.72 flHt.; w=tIL ... o.gn_ 211 lIiII:Uu 31 ~ Ian. 46.63 fat to thIIo _ _I:~ DOZt:hMIIt _ cd! .m.d _ Tt... ~~. : CozDont1Q11 ~ .. ~ _.t. n;ortb.u-1y IX/Z'I;lIIrut 110_ of cbat: ClIlZtdD tract of Lml! ~ to V.D:IIimIIr. by dead ~ in ~ 288. Pagl137. DMd~. DI!II1tDll CcYDtY. TII:aIII; 'rIIIIEII SauI:b. DO dlIgnM l' 1lI1Ill.te.. S1 HCOD!Ii ...st. al'1DlJ thll c_ 1imr ~ .d4 :hw TUtlt ~t. C<:IzDoa.tion tract lIDd iIaid IIw:CIr. ~t, at ".140 fest. ~1.IIi' II 16 iIloJr. 61& trtlll fCIIlDI1 = ..l.d!ln ~ ~aa..u ~.tiQQ t~ UI4 I:h& aortJIHn _ ~ t:9 cart.1D taclt. of l.lUd ~ to ~ ~. by D""- IdPt.ifi<:at:Lo:a lIIO. "-009&lIS5, DfIlld~. ~ Calmt,., '1'ePiI, 'DIIDICI IloiatJr. .1 ~ D8 m:hmttI. 41 HCII:IlId. ~tt. ~ tt. CIOIDCIDo :LS- of Mid ... 'l'iDB IIm!IlI_. Ca:rvont:l.oa II:a.4 lIOllI;o fiz1:llKU:l.p ~ 31'1.'1 fut to .. 1(2 :lDClIl izaa fGtIlIo1 It. tal lCUt.llIrMt. =er of ..... on.. :mn.~. Cozporati_ tmat ill .a1l! IliozIa.:l.IO kP Sez:.ee, '1'IIIIIII:!II1rm'tb 00 ~ 21 rWlutM 1P 1.-dII -.t. IlloDg" ~ _III: limr if:.-id. _ Tl_ ~~. ~t1oD trllGt. 13511.4' teG to "... IOlII'I' 01' am.DDmIiiI UId caatimliAg' 91.15' __ of lad. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Parks and Recreation Department .. ACM: Howard Martin, Utilities 349-8232 SUBJECT Hold a public hearing and receive citizen input on an ordinance of the City of Denton, Texas, amending the Denton Comprehensive Plan to include the Open Space Concept Plan; and providing for an effective date. BACKGROUND The Denton Plan frequently references open spaces to be used for recreational purposes, the preservation of environmental resources, or to serve as a buffer between land uses. Community support for the use of open space to preserve Denton's character was clearly indicated during Denton Plan public meetings and hearings. The Open Space Concept Plan is intended to guide implementation efforts regarding the location and use of open space in Denton and to develop an open space acquisition strategy. The plan defines existing open space in public and private ownership that provide both environmental and social importance in areas of urban development including, local parks, state and federal lands, golf courses, ranches, farms and other agricultural lands. Existing floodplains and riparian areas are defined and designated as important open space areas, including environmentally sensitive areas that are designated in the Denton Development Code. Priorities: The concept plan calls for a system of prioritization to identify lands to be protected. It identifies land that has significant resource value and is most threatened, but does not call out specific tracts of land or prioritize acquisition areas. Key plan elements included the need for: · pursuing a community trail network to link open space areas and other destinations · development of regional parks that provide recreational areas and protect valuable open space · protecting and restoring ecosystem habitats · preserving scenic corridors The plan then identifies the levels of priority including: · the acquisition or protection of environmentally sensitive areas that are under immediate threat of development · high priority areas that not under immediate threat · high priority areas to be considered for long-range consideration 1 The plan also defines several land protection tools and techniques including: . acquisition . land exchange . conservation easements . environmental overlay zones . density transfers . development rights transfers On November 10, 2004, the Planning and Zoning Commission held a public hearing to consider adoption of the Open Space Plan. The sub-committee recommended approval of the plan with the following conditions: 1. Remove specific sites listed in the "Priority Locations" section of the plan; 2. Clearly identify and distinguish between open space resources and areas that need to be protected; 3. Consolidate departmental master plans to develop open spaces into use areas or multiple use corridors for the sake of efficiency; 4. Re-title document as Open Space Concept Plan and Coordination Tool; 5. Parks and Recreation staff, in conjunction with other city departments, study the feasibility of implementing an open space and trail dedication requirement for new subdivisions to connect and provide access/linkages where appropriate and in areas where there is a plan or proposed network in place, and identify incentives; 6. Reword "Implementation Techniques" section as Land Protection Tools and Techniques; 7. Establish a Five-Year Action/Implementation Plan; and 8. Hire a Master Plan Coordinator to achieve Open Space Master Plan. The Planning and Zoning Commission recommended approval of the Open Space Plan by a vote of 5-0. At the January 31, 2005, meeting of the Environment Committee staff presented the Planning and Zoning Commission recommendations for changes and the Committee moved to forward the plan to City Council for adoption with those changes. In addition, The Environment Committee asked for the following modifications: 1. A redline document of the plan showing all revisions from the original document. 2. In reference to the Planning and Zoning Commission recommendation to hire a coordinator to achieve the plan, it was recommended that this should be accomplished with existing staff. On August 1, 2005, staff presented the Open Space Concept Plan to the City Council in Work Session and received direction to proceed to a public hearing. OPTIONS The City Council may: '" Hold a public hearing and receive citizen input on the Open Space Concept Plan '" Provide alternative directives to staff. RECOMMENDA TION Staff recommends that the Open Space Concept Plan be placed on the October 4, 2005, City Council agenda for final consideration. 2 ESTIMATED PROJECT SCHEDULE City Council Regular Session October 4, 2005 PRIOR ACTIONIREVIEW Planning and Zoning Work Session Parks, Recreation and Beautification Board Planning and Zoning Commission Environment Committee City Council Work Session March 10,2004 and April 14, 2004 April 5, 2004 and May 3, 2004 November 10,2004 January 31, 2005 August 1, 2005 EXHIBITS 1. Open Space Concept Plan 2. Proposed Ordinance 3. Parks, Recreation and Beautification Board minutes of April 5, 2004 and May 3, 2004 4. Planning and Zoning Commission minutes of November 10, 2004 (refer to pages 41-57) 5. Memorandum from the Open Space Master Plan Subcommittee of the Planning and Zoning Commission dated November 10, 2004 6. Environment Committee minutes dated January 31, 2005 7. City Council Work Session minutes dated August 1,2005 8. Red-line copy of original document showing revisions recommended during review. Respectfully submitted by: Janet Fitzgerald, Director Parks and Recreation Department 3 The Denton Comprehensive Plan stated that "The City of Denton recognizes the need to value it environmental resources appropriately. By identifying, protecting and preserving those areas with ecological value, further loss of our natural heritage can be avoided." While Denton is a great place to live and work, part of what defines the quality of live in Denton is ready access to open space, both in the City and in the many recreational opportunities nearby. In addition to the quality of life benefits, open space provides wildlife habitat, assists in cooling the fierce heat of the Texas summer, improves air quality, cleans and filters water, and assists in flood mitigation. The Importance of Parks and Open Space: . Natural areas provide opportunities for passive recreational activities such as hiking and nature studies, while trees provide shade in parks for sitting areas. . Quality natural environments and open space amenities have become key decision making factors in the location of employers, as they try to attract workers. . Access to parks and open spaces, augmenting a place's quality oflife has been shown to add to real estate values. . Landscaping with trees, shrubs and perennials minimizes the need for mowing grass and conserves energy and money. . Natural areas provide habitat for a diversity of flora and fauna - conserving and protecting species diversity. . Plants play an important role in recycling of carbon, oxygen, and nitrogen compounds in the atmosphere. . Trees and shrubs are essential to soil development and protect streams and other watercourses from erosion. . Plants improve the quality and supply of ground water slowly releasing moisture into the water table from root systems. . Trees improve air quality by removing airborne pollutants through their leaves. Because of the many critical roles open space can plan in our lives, it has come to be referred to as "Green Infrastructure". "Green Infrastructure is our Nation's natural life support system - an interconnected network of waterways, wetlands, woodlands, wildlife habitats, and other natural areas; greenways, parks and other conservation lands; working farms, ranches, and forests; and wilderness and other open spaces that support native species, maintain natural ecological processes, sustain air and water resources and contribute to the health and quality oflife for America's communities and people." -> '. \:'Aci~Wae ,;, The Purpose of the Denton Open Space Plan All the benefits of Open Spaces will not be realized without a plan of action. This plan provides the framework by which Denton may pursue more specific actions to preserve environmentally sensitive lands and open space. The residents of Denton have clearly articulated their desire to retain open space and the unique character of the region. This plan is meant to build on the foundation laid by the Denton Comprehensive Plan, and the Denton Development Code. Open Space in Denton Today Currently, of the 40,950 acres of the Denton City and ETJ, 3,030 acres are in public ownership of which 1,400 acres are in parks or protected open space. Another 18,000 are vacant, privately owned lands that are undeveloped today. It is on these lands that future development will occur, and where opportunities for new open space exist. li;iiriitf:r:JW .$:~f4:rW;~ .$Indh'fi ~~~~:::!.. ..~ .BQt~qt'?g;i.fr . ,,;....if: ';j,..F' ~",........;. : <:'_~";,:j.;"<",)I..,~,z..');~<:,;.', : _ ~t,{qr l.l';;!}';'l-:!-Il<~,l.m .: .... .....::. .. .. .. .. .. .:-:: .. .. .. .. .. .. .. .. ............. .. .. .. .. .. .. . :.:": . ................................................................ . / Public Ownership The Denton Parks and Recreation Department currently maintains 28 parks, open space and hundreds of acres of yet to be developed land designated for parks. This inventory ranges from active, full-service facilities, such as North Lakes to the public green surrounding the Courthouse. Through the Greenbelt Trail, the City has also realized huge successes with parkland that is utilized in a natural state. In addition, the City has developed an extensive system of bicycle trails and has begun a more comprehensive pedestrian trails system including rail trails, equestrian facilities and greenway trails. Today this extensive inventory includes 23 parks and 4 open space preserve areas, totaling just over 1,200 acres ofland. Parks We all know that parks are important to people. Not only do parks provide a respite from the noise and bustle of traffic and crowds in cities and towns but they also provide the stage for a whole range of social activities. Parks, as a distinct type of open space, are publicly owned recreational areas. They may be a few acres of playing fields, or hundreds of acres of natural areas for hiking, or passive recreation, or a combination of both. However, they are meant to be used by the public, and have open access. Open Space Open Space is a more generic term that includes parks, but also private areas that provide some of the benefits of open space. Therefore golf courses and cemeteries can be considered open space, as are privately owned farms or ranches that have been conserved through purchase of development rights, or natural areas that are privately owned, but similarly conserved. These latter, privately owned open space areas provide many public benefits, without the benefits of entry by the public, but also without the tax burden of ownership and maintenance. One of the most important issues of urban development in the coming years will be identifying and managing areas that have environmental and social importance. Historically, environmentally sensitive areas have been destroyed, in the name of 'progress' to make way for development. Wetlands have been filled, streams buried turned into culverts, and lake shore areas filled and reclaimed. However, in the last few decades, the people of Denton have become increasingly aware of the value of a healthy natural environment and open space. Floodplains & Riparian Areas "Riparian" refers to those areas that are adjacent to streams and lakes; often, it is also used to refer to floodplains, wetlands and natural habitat found within those areas. Riparian areas are beneficial to water quality when they are preserved and when the streams are lined with natural vegetation. These areas, especially when vegetated, provide stream bank stabilization and filter and retain storm water flowing across the stream buffer, thus helping to retain channel location, reduce flood potential, provide important wildlife habitat and help to keep streams and surrounding areas cool. The Denton Development Code classifies these as the areas within 100 feet from streams that drains over a square mile in size, and 50 feet from streams that drain less than a square mile. These streams, and the point at which the stream drains less than one square mile are on the official Environmentally Sensitive Areas map. The Denton Code also works to protect these areas by providing property owners and developers with significant incentives to transfer development densities away from riparian and floodplain areas. However, some of the larger riparian areas and floodplain have such large significance for open space values, they should be considered for open space acquisition, for drainage and flood control, habitat preservation, air quality benefits, and passive water quality treatment. Some of these areas would also provide passive recreation opportunities such as hiking, fishing, or canoeing. Water related habitat lands are farther from the stream, but occupy important floodplain areas and contain generally undisturbed native ecosystems and wetlands important to the stream health and the community's air and water quality. In Riparian and Water Related Habitat lands, Lands, most development activities are prohibited. The intention is to leave these areas in a natural state, including most of their native vegetation. This benefits many elements of Denton's environment, most notably air and water quality and flood mitigation. Floods have been a problem in Denton's urban areas for much of its history, as some of the best places to build in town often are the floodplains of Pecan Creek. In addition to preventing property damage, restricting development in floodplains serves many other important functions. These include water recharge, protection of wildlife riparian habitat, and floodwater storage. The Denton Development Code has fairly strict development limitations on development in floodplain. There are just over 3,000 taxlots that lie partially within the 100-year floodplain, with roughly 600 of those parcels being completely contained within one of Denton's many, floodplains. As a result a significant number of housing units and many businesses already have located in the floodplain, including some of Denton's most urbanized areas, such as the downtown with Pecan Creek running right through it. Cross Timbers Oak Land Cross Timbers oak areas are unique upland habitats to the Denton area. The ones considered significant for open space values are generally larger than 10 acres or more and support a unique upland ecosystem. Standards in the Denton Development Code in these areas require that at least 50% of the habitat in these large stands be conserved. Approximately 75 percent of the Cross Timbers and Prairie vegetation areas are utilized as range and pasture. Maj or crops on the sandy Cross Timber soils are peanuts, fruits, sorghum, wheat, oats, corn, and forages. Dairy operations are common, but beef cattle cow-calf operations are the predominant livestock activities. Agricultural Lands Agricultural lands are valued in Denton for many reasons - their beauty, their contribution to the economy, and their value as open space and buffering from other uses. Agricultural lands protection often is controversial, frequently because agricultural issues are poorly understood. An important aspect to consider when discussing agriculture is that it is a business and, as with any business, profit is essential for its continuance. Residents who move onto agricultural land because of its pastoral nature often are disturbed by the necessities of modern agriculture: around-the-clock harvesting, manure spreading, pesticide and herbicide spraying, and the presence of strong odors and flies. Meanwhile, suburban residents can disrupt the business of agriculture by clogging roads with traffic, making the transport of agricultural equipment difficult and hazardous, owning animals that harass livestock, and filing nuisance complaints against farmers. In agriculture, it also is important to understand that a farmer's land is his or her primary capital asset after a lifetime of work. Urban residents value the open space that agricultural land represents, but zoning that restricts land use to agriculture only is often resisted by the farmer if the land can be sold for urban uses - as that will maximize the return to the farmer. In Texas, where county zoning is not permitted, agricultural land protection can best be accomplished by either transfer of development rights or by the purchase of conservation easements, or agreements in lieu of annexation. (See Implementation Chapter for specifics) Other Wildlife Habitat Important wildlife habitats include prairies and riparian areas as well as forested areas such as the Cross Timbers lands. Many species' existence depends on the continued health and connectivity of these habitats. White-tailed deer, raccoon, armadillo, squirrel, quail, and mourning dove are just a few examples of the abundant wildlife in the regIOn. Setting Priorities Threats to Open Space With the hundreds of thousands of acres of open space that are in and around Denton, a system of prioritization must be established to identify those lands that are best suited to protection. Utilizing the power of Geographic Information Systems (GIS), computer-mapping models have been created to assess the threat and resource values of these lands in and around Denton. This computer model is built into two distinct parts. The first model analyzes the resource potential of all the land, while the second calculates potential threats to these resources from development. Together, these components are brought together to determine that land that is both of most resource value, and that is most threatened. The result is a mapping of areas with the mathematical highest priority for protection, preservation, or acquisition. Vacant Lands Water Modeled Lands Undeveloped Lands Land areas that have yet to undergo significant human alteration are more valuable as open space for numerous reasons. Of utmost importance, conversion to open space can be accomplished without any displacement of human settlement, helping to ensure that no individual resident is forced to take on an undue burden for the good of the rest of Denton's residents. Additionally these lands will be both cheaper to acquire due to lack of development and more likely to contain habitat and natural areas that are considered valuable as open space. Environmentally Sensitive Lands Many of the key habitat and open space resources occur on lands identified in the Denton Code as Environmentally Sensitive Areas. In determining potential value of open space, Floodplains, Riparian Habitat and Upland Habitat are key factors. These areas contain not only areas that are likely to be relatively undisturbed, but also areas that feature prime habitat for a number of species. Preserving these lands can playa crucial role in retaining diversity of species. Residents will also reap the rewards of protection through such issues as flood control, lower temperatures in the summer, better air quality, and access to both the natural areas and potential trails that might be run through these areas. These lands are not as valuable to land owners, as the building potential is lower; accordingly, as with undeveloped land above, these areas will be less expensive than developed, or easily developable areas. Threats Leading to Loss of Open Space Proximity to roads and service The Proximity of open space to infrastructure can help to estimate how threatened a specific site may be. If there is already infrastructure in place, such as roads and sewer, then an area is likely more susceptible to new development. By recognizing these areas, and those where services will soon be extended, a potential threat from development can be identified. Future Population or Employment Concentrations The zoning types in the Denton Code carry much detail, ranging from landscaping to allowed uses. Paramount to Open Space planning is the land use, and subsequently the intensity of future development. Further, while not proscribing zoning for areas outside the city, but inside the ETJ, the Denton Comprehensive Plan provides an estimation of the expected future development density. Densities were analyzed in a gradient fashion, with highest densities having the most potential threat to open space resources. This calculation of likely future was used in conjunction with the proximity of roads and services to determine the combined potential threats from development. Access to population The current Denton parks system serves most of the population with parks within 1J4 mile walking distance. This is quite a high standard for the provision of open space. New development, however, will need to be served with additional open space outside the existing City Limits. In addition, completion of the system of trails within the city should remain a high priority as this contributes the interconnectivity of the overall system of open space as well as to accessibility to a wider population. On February 27,2002, the City of Denton sponsored an Open Space Workshop to help draft a plan for the Denton region. The workshop was designed to help develop both a priority list of sites for the Open Space Network, plus recommendations on methods necessary and a decision making structure to help decide future questions of open space need. The workshop process enabled participants to choose which areas they felt should be of the highest priority and give valuable input about the future of Denton's open space. Participants worked in two small groups to create alternative plans, and those plans were analyzed. The plans were then synthesized into one final conceptual open space plan that incorporated all the key themes and ideas presented throughout the workshop. The workshop resulted in an interconnected open space system featuring continuous trail linkages among the existing and proposed open space acquisitions. The workshop provided numerous specific ideas for the enhancement of the open space system that will form the kernel for its expansion. Most of the ideas are applicable to the wider landscape and can be interpreted Open Space Plan - Introduction Key Plan Elements The plan includes the primary elements that are described in the following discussion. As a plan, the map should be interpreted, not as a parcel- specific plan, but rather as a guide to a conceptual open space master plan. There is considerable flexibility among the component parts in terms of implementation. Conservation sites may ultimately be acquired or dedicated as open space through the development process, and acquisition sites may be partially developed in exchange for public ownership of key areas, but it should be a guiding document for the development of a comprehensive open space system in Denton. Trails or Trail Corridors The Community Trail Network Trails are to be both regional and local in scale and should provide potential destination oriented trips such as work or shopping while also providing a recreational component. Trail networks are identified that establish new, or that enhance existing, regional and cross town routes, connecting major centers of activity with non-motorized routes. Additionally, enhancing the pedestrian connections along local and regional transportation routes also is important. A variety of trail types allows for many different uses. For example, a good trail system employs both hard and soft surfaces. Hard surface trails are generally for use by walkers, skaters, bicyclists, and people with disabilities. These trails are the ones which will serve both recreation and transportation functions. Unlike the hard surface trails, which might start off as natural and only later be paved when funds are available, the soft surface trails will serve the Denton's nature preserves and other areas where the focus on natural resources takes precedence over the need for mobility. In addition to pedestrian-only trails through sensitive natural areas and off-road bicycle trails in less sensitive ones can provide both important access to Denton's Open Space and important transportation links. Denton currently has a trail network that runs just under fifty miles in length. The most notable of Denton's trails are the Ray Roberts Greenbelt connecting the City from Lake Lewisville all the way to lake Ray Roberts, and the more recent Rail to Trial conversion extending Southwest from Downtown Denton to beyond the city limits. Many of the drainages within town, such as Pecan Creek for example, have many places where "Volunteer" trails have been created to supplement the official trail network. These "Volunteer" trails are a result of people walking or biking over the open land, in essence showing us where they would like the improvements. Additional unofficial trails can be seen at North Lakes Park. Regional Parks Regional Parks are places for recreation, education and rejuvenation and provide for a vast array of native fish and wildlife. Regional parks are unique jewels featuring sensitive habitats, awesome landscapes and views, trees, heritage buildings and sites and basic facilities. The North Lakes Park off of Bonnie Brae Road, just North of University Drive is a shining example of a Regional Park. It offers a range of recreation alternatives and serving residents from all parts of the city with its ball fields and courts, Community Recreation Center, Trail and wildlife to name a few attractions. North Lakes Park is also well positioned to serve a future expansion of population to the north, running up to and just past Loop 288. Ecosystem Habitat Many of the habitats in the Denton region have been degraded over the past decades, and in some cases permanently altered, by urban development and sprawl. Protecting and restoring these habitats requires an understanding of comprehensive ecosystem function and all the interconnections that combine to support the health of any particular habitat. An ecosystem approach to management habitat recognizes the interrelated nature of air, land, water and all living beings. Rather than geopolitical boundaries and departmental divisions, this approach calls for creative partnerships that look at natural boundaries, such as watersheds, as the unit of management. Participants at the workshop identified several areas important for their quality ecosystems and amount, or diversity of habitat. One of the highest ecosystem priorities identified is the Hickory Creek drainage, stretching from Lake Lewisville up to at least I-35W. At just about the same level of interest to the group were the Pecan and Cooper Creek drainages. As these two streams get closer to Lake Lewisville the amount and diversity of habitat increases, while at the same time there is less human alteration visible. Scenic Corridors Scenic Corridors are linear open spaces paralleling major thoroughfares that provide a sense of openness for the community by preserving the natural setting, providing views of nearby hilltops, linking vista corridors along major washes and buffering adjacent land uses from traffic. Access points along the corridor make it possible for residents and visitors to experience these areas through hiking, horseback riding, biking, nature studies, bird watching, scenic viewing, picnicking, and more. Scenic corridors are generally described as "the view from the road" and can best be defined as the visible land area outside a road right-of-way. They vary in width according to topography and vegetative cover; flat open areas will have wider corridors than steep, narrow canyons or densely wooded areas. Denton's most popular Scenic Corridor to date is the Lake Ray Roberts Greenbelt, providing access for hikers, bikers, horses and even canoe and kayakers. Participants saw much value in continuing this greenbelt South, to and along Lake Lewisville with an eventual connection to the existing Rail to Trail conversation leading Southeast from town. Additionally much support was shown for a new scenic corridor connecting the Greenbelt to Sherman Drive along Clear Creek. Criteria for Delineating Scenic Corridors Angle and Duration rif View The angle at which the landscape features may be seen from the roadway, in both directions of travel, the foreground features framing them, and the period of time they can be observed all bear on the delineation of the corridor and must be taken into consideration. T opograpry When landforms, such as the crest of a ridge bring the range of vision from the roadway close to the right-of-way, the entire visible area should be included in the corridor. Priority Locations Urgent Environmentally sensitive land that is under immediate threat of development is the highest priority for consideration. An evaluation of potential codes that might protect the critical resources is the first stage. This will establish the basic core that can be protected under regulatory processes. Secondly, the proposed development design should be reviewed to evaluate the degree to which it accommodates other resources that are present on the site. There are often possibilities for improving the sensitivity of the design in the context of the existing resources. Typical Urgent Sites The following are general locations and represent types of open space areas that indicate the highest priorities for consideration. These locations were identified because they are important open space resources, such as flood plains, riparian areas, historic and cultural locations, and/or environmentally sensitive areas. Lower Reaches of Hickory Creek The Hickory Creek green-belt area flows southeast toward its confluence with Lake Lewisville. With much prime habitat and its close proximity to residents in the southern portion of the city, Hickory Creek is a valuable for habitat protection, trail potential, and access to nature. Preservation of this corridor is also vital for pollution control. Much of this area is currently owned by the United States Army Corps of Engineers. Land owned by the Corps can often, and should in this case, be protected through public easements. The use of easements being much more economical than outright purchase, and the unique ownership situation both make this site a distinct short-term possibility. The City has had success to date in signing agreements where the city will agree not to annex the property, if the owner declares that he or she will not develop the property to urban levels. Agricultural and Ranch Lands These lands have cultural value as well as being fine examples of quality prairie land. These lands would be a valuable asset as a regional park combining a fine natural environment with large areas that could be developed as recreational facilities. It could also support prairie restoration. These lands could be considered prime for development due to their size and location in Denton. With a relative lack of environmentally sensitive areas, properties such as this are may prove to be very expensive to acquire. Unfortunately, sites of this size are not very useful if only small easements are purchased. Therefore this type of land tract would likely have to be purchased outright with public monies. Historic and Cultural Locations In addition to agricultural and ranch lands, there are other land areas that hold significant cultural value to the Denton community. These locations may be unique land formations and/or locations of historic events that have become icons to the Denton area and should be protected or preserved. Clear Creek Natural Area Just Northeast of the city limits Clear Creek flows toward the East through some exceptionally well- preserved lands. Acquisition of lands in this area can provide a full array of benefits, ranging from trail linkages and access to nature to habitat protection. Sites such as this can also be excellent locations for interpretive centers. The most urgent targets should include areas most likely to be affected by development first. Currently this is the most eastern sections of Clear Creek. Preservation of this entire corridor is also vital for pollution control. Pecan and Cooper Creek Drainages These two roughly parallel drainage ways were highly valued by the participants at the workshop. Running from Loop 288 to Lake Lewisville, these corridors provide key trail linkages, important access to open space, and preservation of important habitat. These areas are unlikely to be host to any significant public facilities or destinations and therefore are likely best candidates for protection through easements, with outright acquisition as a last resort for any gaps that occur. Near Term Sites that are zoned for high intensity development should be carefully monitored for any indication of imminent planning applications. Any available information on the type of proposed development, number of units and resource lands that might be compromised should be ascertained as soon as possible. Early negotiations with the landowner should address the most valuable resources on the property and potential for protecting or conserving these. Potential acquisitions should also be considered, if the developer is willing to consider this as an option. Additionally for larger developments easements or ownership may possibly be obtained as either an exchange for park fees, or to alleviate the property owner's liability on land that he or she leaves undeveloped. Near Term Sites Include: Upper Reaches of Hickory Creek Hickory Creek flows southeast toward its confluence with Lake Lewisville. The lower reaches of this stream corridor have been identified in the "Urgent" section as a top priority. The upper reaches would make an excellent addition to the previous piece. Adding this stretch will allow the City to build on the trail network, protect additional habitat and provide more public access to open space. This trail could rival the Ray Roberts Greenbelt as an amenity for Denton's residents. Unlike the lower reaches, the ownership patterns in this stretch are more complex. While there should be potential for utilizing easements to grant public access there are likely to be situations where outright purchase will be necessary. Also like the lower reaches, agreements in lieu of annexation may also be employed. As with the lower reaches, pollution control is also an important motivator in protecting this property. Milam Creek Tributary Roughly paralleling Locust at the northern edge of town is a tributary of Milam Creek. Water from this creek ultimately flows into Clear Creek. As trail linkages are established along Clear Creek, this site could be added to the inventory. A trail in this location would provide access in a growing portion of Denton, allowing many to access the greater trail system, including the Ray Roberts Greenbelt without needing to drive. Additionally this site could provide additional access to nature for the new residents that will be living in the area. This is a smaller creek, draining less than one square mile. As a result, the riparian and floodplain protections are less comprehensive than on other streams. Because of the lower level of protection, the parcels along this stretch are more developable than similar parcels along other, larger streams. The higher degree of developability will by necessity result in higher prices. While it may be possible to obtain some of this land through donation, much will need to be simply purchased, either outright, or as easements. Small sites such as this, which fit into more of a long-term vision, are often elevated in priority to suggest purchase early, before development pressure in an area begins to affect land prices. Fletcher Branch of Hickory Creek The Fletcher branch of Hickory creek flows from the southern end of town, due south until it reaches the Creek. Roughly halfway long this branch sits a large area of undeveloped land, roughly between Ryan and Hickory Creek roads. This site has much potential as an active park. Further, with the completion of the Hickory Creek greenbelt, this site could become a convenient access point to Denton's trail network. The branch itself provides potential as a trail linkage as well. While the trail portion may be accessible via easement, the land for the complex itself should be planned as outright purchase. Long Range Larger tracts of land that are not zoned for intensive use, but which might be developed over longer periods of time should be considered for environmental overlay zones. Using the tools currently in the Denton development code relating to transfer of development rights, some of the sites available for rural density development could be configured as conservation developments. This style of development clusters rural housing while maintaining conservation easements accessible to all adjacent landowners. These areas could be restored as prairie, maintained as riparian areas, or set aside as wooded preserves in the context of the overall development. An environmental overlay could be inclusive of many separately owned tracts of land, which could be addressed individually as development occurs. Complete Trail Network The majority of the scenic or waterway corridors listed in this report are intended to be accompanied by trails. As these areas are protected the City will find that it has a truly unique opportunity for a connected trail system both throughout the city and beyond to Denton's natural areas. Most of these trail sites will be acquired through the sites listed in this report. However, there will no doubt be areas where gaps will occur. In many cases, the City may have to purchase land or easements necessary for completing this system. The City may also choose to use nearby roadways to link trails that are otherwise not linkable. These trails may also be acquired through donation at times of development. The trails, fundamental to this Open Space Plan are shown in detail on the accompanying map. Scenic Corridors Much support was shown for a new scenic corridor connecting the Ray Roberts Greenbelt to Sher- man Drive along Clear Creek. Unlike many of the targets in this plan this area is not intended for trails or habitat preservation. This corridor is intended to provide an elegant corridor for autos entering and leaving Denton. Methods of protection will vary, and the standard is not as high as in the waterways. Not all development needs to be precluded; this area could even be home to some clustered rural housing without crossing the intent of the scenic corridor. This roadway will function as a natural gateway for travelers. Much of this land is not currently within the City of Denton's jurisdiction and would require extensive partnerships with other government entities and private landowners. Far Northwest Neighborhood Parks There are currently a number of large, undeveloped tracts of land in the far northwest area of the city. With their connections to Milam, and ultimately Clear Creek, this area could provide an excellent access point to Denton's network of trails. The large size of the sites, along with their proximity to expected future development give it much potential as a location for one or more neighborhood parks. This land would need to be obtained through outright purchase, but may be aided by parkland dedication, and fees in lieu of land for nearby developments. Northwest Urban Trail Much future development is expected near the intersection of Loop 288 and I-35W. Along with, or prior to this development a trail system should be put into place. The route could be roughly circular connecting both sides of each major roadway to each other and to the trail network located to the east. The precise location should be determined through a localized process. Unlike many of the other trails mentioned, this trail does not follow any significant waterway. This means that donations or easements that may normally result from the need to protect the waterway will not apply. There may however be potential for donations of land during time of development. Easements may also be employed for this site. Far Northeast Denton North of Mingo road and east of Loop 288 there sits a large area of relatively undisturbed land. This area, while not containing any significant stream related habitat, could be an important piece of open space for nearby residents. Workshop participants felt that this site would have to be purchased outright, but would be a worthwhile investment. Unique or Opportunity Sites (dependent on availability) Occasionally particularly desirable sites become available for acquisition that would be of substantial benefit to the entire community. There are several examples of particularly fine sites that have the potential of helping define the community. These should be shepherded into public ownership using any appropriate tools to assure their protection for the community benefit. - Key Unique or Opportunity Sites Large Sites Containing Habitat Intensely zoned parcels that contain either water related or upland habitat should be examined for potential protection. Sites Containing Prairie or Park Potential There are several sites around Denton that while they contain quality prairie lands, are not being singled out in this analysis. This is partly because there is little to distinguish these sites from one another, and protecting all of them would mean using up a large portion of Denton's buildable land supply. However, these sites can play an important role. The areas inside the city are well served by neighborhood parks. As development occurs, monitoring other suitable sites in developing areas can help to ensure that the level of park service remains high. There is no general rule in terms of acquiring these properties, as each case may be different. Daylight Downtown Streams Several portions of Pecan Creek and its various branches have been placed underground. These streams are often referred to as the WPA drainages, as they were construction by the works progress administration. Many urban areas have begun experimenting with day lighting or bringing these streams back to the surface and usually adding trails. Sometimes this involves rerouting the stream, but more often channels are simply opened up and the banks reconstructed. These streams can add beauty to an area as well as provide business opportunities such as outdoor cafes that are oriented toward the stream, and a trail along the side. Culp Branch This stream running near and ultimately into the Elm Fork of the Trinity could be useful for pollution control, access to nature, and simple preservation. Multiple methods of protection could be employed, but will likely involve either acquisition or easements. This stream, especially just prior to the confluence was highlighted by the workshop participants. Many such similar situations may arise as development or even further study brings additional areas into the spotlight. Land Protection Tools and Techniques Acquisition Of all the implementation techniques, this is the most flexible, and allows for the permanent ownership of land, the full right of access by any public member, and the full rights of management of the land in the public interest. It is also the most expensive, not only for the purchase price, but the land is removed from the tax roles, no profitable enterprise is conducted on the land, and it then becomes a public burden for maintenance. Since it involves direct expenditure of public funds, this tool is one that should be used sparingly, and only for sites that cannot be protected in any other way. There are special sites that should be protected, regardless of the cost, and this should be used as a final resort to assure their preservation. Therefore, this tool should be used selectively, in areas where either public management is needed, or public access is important for the purpose of the park to be achieved. City park funds - fee in lieu of dedication Money is placed in the general park fund through fees on new development. Large developments will usually be creating their own parks to address their localized needs. Smaller development, and large ones in certain instances provide money in lieu of parkland dedication. Bonds Approved by voter referendum, General Obligation Bonds may be used to finance acquisition, easements, or construction. These bonds are most often used when the proj ect will not generate enough revenue to cover the cost of the improvements. Revenue Bonds are also useful as they can be used for proj ects that will eventually produce enough income to cover their debt. Regional parks are examples of sites where Revenue Bonds can successfully be employed. City drainage funds The City has recently implemented a new surcharge on property to enable compliance with the clean water act, flooding, and other problems associated with runoff. The drainage charge is calculated for impervious surfaces on properties. Impervious surfaces represent surfaces that contribute runoff into the storm water system including the basic building structure, garages, roofs, patios, driveways, parking lots, etc. Many of the improvements associated with protection of stream corridors may fall under the auspice of the purpose of the drainage fund program. Open Space Bonds Funded by Property or Sales Tax Agreements in Lieu of Annexation The City of Denton has achieved some measure of success in signing a contract with a landowner where he or she will agree to not develop the property to urban levels in exchange for the city passing over the option to annex the property. In cases where conservation, not access is the goal, these agreements may be employed. Land Exchange Public entities occasionally have properties that are of suitable size and location to make them attractive to be traded for private lands desired for open space. Land exchanges are done on the basis of appraised value rather than size. Land trades can be time- consuming and complex but can be beneficial to both the seller (no tax for an equal exchange) and the purchaser (no cash required). Under federal and state tax laws a landowner may exchange one tract of land for another. An advantage of such transaction is that capital gains taxes are deferred. For example, the swapping of privately owned land with conservation value for publicly or private nonprofit owned developable land. Acquisition of Development Rights (Conservation Easement) Transfer of specific interests in land (rights) from a landowner to another party. For example, an easement may specify that all or part of the land be left in a natural state through the transfer of all or limited mineral rights, timber rights, subdivision rights, etc. It may allow restricted or unrestricted public access. The landowner may retain ownership and specified reserved uses, while the easement holder has the right to enforce restrictive conditions included in the easement. Appraised value and, therefore, property taxes and estate taxes, are routinely reduced in proportion to the reduction in land value when an easement is donated to a government agency or private nonprofit organization. Easements must be in perpetuity to qualify for federal and state income tax advantages. Regulatory Protection Density Transfer (already established in Denton Code) One of the most effective regulatory provisions in mitigating reduced land values is a density transfer system. With density transfers, a property owner has the right to the same number of units and allowable uses, but the units are transferred on the same parcel from more sensitive land to less sensitive land. With density transfers, the economic effect of environmental protection may be almost benign - especially in residential developments. The focus of a density transfer system is more on how to design with nature, rather than how much to diminish the overall development intensity. We recommend that density transfers be permitted as a property owner's right and not subject to approval through a discretionary decision-making planning process. No action is needed to implement this section, however, developments that occur in areas that have been identified, as key open space areas should be encouraged to use the density transfer provisions to their fullest extent in order to facilitate the implementation of this plan. Transfer of Development rights One method that has been used to protect open space lands is a Transfer of Development Rights (TDR) system. Several states throughout the nation have TDR programs that are two decades old or older. In a TDR system, the area to be protected is designated as a "sending zone," in which a certain number of units per acre are credited to the sending area. A "receiving zone" also is set up where the development rights can be transferred. By buying the development rights from a farmer, a developer can achieve a higher density in the receiving zone than otherwise would be permitted. The beauty of a TDR system is that the compensation amount is determined privately between the property owners involved-and the result is permanent protection of the farmland. Accompanying this document is an appendix that contains a Transfer of Development Rights ordinance that can be added to Denton's development code. Summary This list of strategies is not exhaustive as other programs may be available that have not been brought forward. Strategies noted may be modified or used in combination. The overriding theme is that no one strategy will be acceptable to all property owners nor provide the right mechanisms for achieving the goals of this plan. A number of strategies are listed as it is recognized that it will take a number of different ones working together to be successful. While certain areas have been targeted as examples for a particular strategy, this is not intended to limit the tools that may be brought to bear to achieve the goals of this plan. Conclusion This plan is intended to further this vision of the plan, and lead to specific action that will lead to a Denton that is as good as, or even better, than the place we live today. One thing seems certain to the people of Denton - if we build a successful economy, an efficient transportation system, and a good education system but neglect open space, we will have failed. The public benefits of open space, in its various forms, may range from aesthetic appreciation to food production and recreational uses. These values contribute to the wealth of the region, boosting its economic, social and natural capital, and contributing to the long-term sustainability of the community. Open space, in all its forms, is not just a land use designation, but also a value in its own right, as well as having added value that is associated with other land uses such as agriculture and outdoor recreation. Open space also benefits public safety, preserves scenic resources, provides a buffer and delineation between developments and serves to protect wildlife and natural habitat. It is these open space lands that serve as the heart of Denton's "quality oflife." S:\Our Documents\Ordinances\05\Open Space Concept Plan Ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE DENTON COMPREHENSIVE PLAN TO INCLUDE THE OPEN SPACE CONCEPT PLAN; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on December 7, 1999 the City of Denton adopted the Denton Plan, 1999- 2020; and WHEREAS, the City Council has been presented with an Open Space Concept PIan amending the Denton Plan, a copy of which is attached hereto and made a part hereof by reference; and WHEREAS, the Planning and Zoning Commission, after conducting a public hearing, recommended approval of the Open Space Concept Plan; and WHEREAS, the City Council, after a public hearing, fmds that the Open Space Concept Plan is in the public interest and will promote the health, safety and general welfare of the citizens of Denton; 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 and are true and correct. SECTION 2. The City Council hereby approves the Open Space Concept Plan. SECTION 3. The City staff is directed to change the Denton Plan in conformity with the Open Space Concept Plan. 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 ORM: EDWINM. S , cn ATTORNEY EXHIBIT 2 BY: Parks, Recreation and Beautification Board Minutes American Legion Hall May 3, 2004 Members present: Geri Aschenbrenner, Teresa Andress, Dale Yeatts, Jo Kuhn, and Chuck Smith. Members absent: Ross Richardson and Reggie Heard. Staff present: Janet Simpson, Bob Tickner, Janie McLeod, Emerson Vorel, and Ken Washington. Others present: Jane Malone, Anna Broderick, Hal Evans, and Jim Avera. Chairman Teresa Andress called the meeting to order at 6:00 p.m. Awards and Recognition - The Park Operations staff was congratulated for their work on making the Denton Arts Festival and Cinco de Mayo successful events in spite of the poor weather conditions. Approval of Minutes - The minutes stood as distributed. Action Items Consider a Recommendation to Endorse the Denton Open Space Master Plan. Janet reminded the Board that the Open Space Plan had been brought before them at the March meeting and they directed staff to bring the Plan as an action item before the Plan goes before Planning and Zoning and finally to City Council. Jo Kuhn made a motion to recommend the Denton Open Space Master Plan to the Planning and Zoning Commission. Dale Yeatts seconded the motion and it passed unanimously. Consider a Recommendation to Approve the Lake Forest Conceptual Master Plan. The Board requested this item be brought back as an Action Item at the June meeting. Consider a Recommendation for a Chapter 26 Use of Park land at the New Briercliff Park for Purposes of a Public Street. Bob reviewed the plans and maps for the development of the Briercliff Park. He said that the City Engineering Department has requested the use of 0.546 acres of park land for a new street right-of-way in order to construct a new roadway to avoid a floodway. After the land was purchased for the street, detailed engineering determined the right of way needed to shift to the North to avoid major modifications to a small pond and the stream channel. Geri Aschenbrenner made a motion to allow the construction of the new proposed Unicorn Lake Boulevard onto a 0.546 acre strip of Briercliff Park. Dale Yeatts seconded the motion and it was unanimously approved DISCUSSION ITEMS Receive a Report and Discuss the 2005 Capital Improvement Program. Janet reviewed the process that the Parks and Recreation Department staff used to develop a preliminary list of park and facilities needs, including the 2000 Denton Parks and Recreation Master Plan, individual park EXHIBIT 3 master plans, service and program demand and citizen input. Janet stated that as the process continues the board would have an opportunity to comment and offer suggestions for the future bond program. DIRECTOR'S REPORT Staff Report on the Denton Youth Sports Association. Representatives from various sports organizations gave reports on league participation and anticipated growth in their programs. Jane Malone with the Denton Soccer Association reported a total of 1,545 participants with 147 teams. Jane added that the number of participants could double in the nextlO years. She discussed the need for an indoor soccer facility and that more outdoor practice fields are needed. Anna Broderick with Denton Girls Softball Association reported 268 players with 65 select players making a total of 23 teams and six select teams. Anna said within the next five years there could be 40 or more teams. Hal Evans and Jim Avera with Denton Boys Baseball, Inc. said that they had 960 players with 83 teams and that they play games every day of the week except for Wednesdays and Sundays. They expected their numbers to double within the next 10 years. They stated that more practice fields are needed. Ken Washington, Athletic Coordinator gave a presentation of the responsibilities and duties of the athletic manager position. Customer Requests Bring Changes at Water Works Park for 2004 Season. Janet reviewed the distributed press release regarding the new prices for Water Works Park. CCA Update. Janet provided an update on the annual testing for arsenic levels in the wood at Eureka playground. In addition to testing, staff has placed precautionary and informational signs at the playground and on the department's web site. Project Status Report. Janet commented that the contract for the renovation construction for the Civic Center would be on the May 5th Council agenda. Keep Denton Beautiful Report. There were no questions. Items for Next Meeting. Lake Forest Conceptual Master Plan and the 2004-05 Budget. There being no further discussion, the Vice Chair adjourned the meeting 7: 16 p.m. Parks, Recreation and Beautification Board Water Works Park April 5, 2004 Members present: Jo Kuhn, Geri Aschenbrenner and Reginald Heard. Staff present: Janet Simpson, Bob Tickner, Emerson Vorel, Janie McLeod, John Whitmore and Lancine Bentley. Vice Chair Jo Kuhn called the meeting to order at 6:00 p.m. Awards and Recognition - Janet announced that the department had been presented with three awards from the state TRAPS conference. Approval of Minutes - Minutes were approved as distributed with one correction. Under Discussion Item - Civic Center Concept Plan - in the second paragraph first sentence read: "She added" and should read "He added". ACTION ITEMS Open Space Master Plan. No action taken due to a lack of quorum. Consider a Request from Metzler's Restaurant to Sell Alcohol Beverages at Cinco de Mayo. It was the consensus of the Board members present to allow staff to conduct a poll of absent members on this item. Janie McLeod polled the Board and received unanimous approval for the sell of alcohol beverages at Cinco de Mayo. DISCUSSION ITEM Lake Forest Concept Plan. Bob reviewed the concept plan map and the comments from the public meeting held on February 26th at Lake Forest. The long-range concept plan includes unlighted athletic fields, recreation facilities, tennis courts, picnic and play ground facilities, a dog park, and nature and jogging trails. He said there were about 50 citizens in attendance. Bob added that there were no negative comments about the Dog Park being located in this park but that the residents did say that they did not want lighted athletic fields in the park. There were concerns expressed about the traffic flow on Ryan Road and the current entry location of the park might contribute to more traffic problems. Bob told the residents that issue would be addressed. Bob said the Concept Plan would be brought back to the Board at a later time for the Board's formal approval. DIRECTOR'S REPORT Staff Presentation on Keep Denton Beautiful - Lancine Bentley gave an overview of the Keep Denton Beautiful history, activities, the three main areas, and their committees. Project Status Report. Bob said the skate park bids would be presented to City Council on Tuesday and that the skate park should be operational by the end of June. Keep Denton Beautiful Report - There were no questions on the distributed report. Items for Next Meeting - Open Space Master Plan. There being no further business, the meeting was adjourned at 6:50 p.m. EXHIBIT 4 >'"'~ " ~, ' Q ";} , / ) \ PLANNING & DEVELOPMENT DEPARTMENT MEMORANDUM TO: PLANNING AND ZONING COMMISSIONERS FROM: OPEN SPACE MASTER PLAN SUBCOMMITTEE SUBJECT: OPEN SPACE SUBCOMMITTEE REPORT AND RECOMMENDATIONS (SI04-00 15) DATE: NOVEMBER 10, 2004 In January 2004, the Environmental Committee of the Denton City Council requested that Parks and Recreation staff bring the Open Space Master Plan to the City Council for consideration. The plan was presented to the Planning and Zoning Commission in work session on March 10, 2004 and April 14, 2004. The Planning and Zoning Commission held a public hearing on May 12, 2004, and at this time, the Commission formed an Open Space Subcommittee to review the plan and make a recommendation to the full Commission. The Open Space Subcommittee has met on June 11, July 8, and November 4 to consider the Open Space Master Plan. At the July 8 meeting, the committee requested that the master plan data be made available digitally and staff has been working on this request. Primary considerations included whether or not open space in Denton is already protected through other officially adopted documents, applicability of scenic corridors and time-frames for acquiring or protecting the open spaces identified in the plan. The Subcommittee reviewed and discussed this data at their last meeting and concluded that the digital mapping allows comparison of the master plans of a variety of city departments and their effects of these on open space, and the ability to coordinate open space in a more efficient and effective manner. The Open Space Subcommittee recommends approval of the Open Space Master Plan with the following conditions: 1. Remove specific sites listed in the "Priority Locations" section of the plan; 2. Clearly identify and distinguish between open space resources and areas that need to be protected; 3. Consolidate departmental master plans to develop open spaces into use areas or multiple use corridors for the sake of efficiency; 4. Re-title document as Open Space Concept Plan and Coordination Tool; 5. Parks and Recreation staff, in conjunction with other City Departments, study the feasibility of implementing an open space and trail dedication requirement for new subdivisions to connect and provide access/linkages where appropriate and in areas where there is a plan or proposed network in place, and identify incentives; 6. Reword "Implementation Techniques" section as Land Protection Tools and Techniques; 7. Establish a Five-Year Action/Implementation Plan; and 8. Hire a Master Plan Coordinator to achieve Open Space Master Plan. EXHIBIT 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 DRAFT CITY OF DENTON ENVIRONMENT COMMITTEE MEETING MINUTES January 31, 2005 After determining that a quorum of the Environment Committee of the City of Denton, Texas was present, the Environment Committee convened into an Open Meeting on Monday, January 31, 2005, at 3:30 p.m. in the City Council Work Session Room, City of Denton City Hall, 215 East McKinney Street, Denton, Texas. PRESENT: Mayor Pro- Tem Perry McNeill Councilmember and Committee Chair Joe Mulroy Councilmember Jack Thomson EX OFFICIO MEMBERS Howard Martin, ACM Utilities Jim Coulter, Director of Water Utilities Kenneth Banks, Water Resources Program Manager Katherine Barnett, Utilities Special Project Coordinator ALSO PRESENT: Kelly Carpenter, Director of Planning Janet Simpson, Director Parks and Recreation Dave Wachal, Water Utilities Coordinator Gary Calmes, Utilities Finance Administrator Kiersten Dieterle, Public Information Manager Dedra Ragland, Comprehensive Planning and Research Manager Larry Reichhart, Assistant Director Planning and Development Dottie Palumbo, Sr. Assistant City Attorney The Environment Committee convened its Open Session at 3:42 p.m. Committee Chair, Joe Mulroy, informed the Committee that there were six agenda items for consideration. ITEMS FOR INDIVIDUAL CONSIDERATION: 1) Consider approval of the Environment Committee meeting minutes of: a. November 8,2004. The minutes were approved as circulated. 2) Receive a report, hold a discussion and give staff direction regarding information requested by the Environment Committee addressing gas well development within the City of Denton as it relates to: a. Location of gas pipelines to include gas well sizes and paths b. Effects of tree preservation ordinance on gas well development/gas transmission lines c. Financial impact of gas well drilling d. Mineral rights vs. surface rights Martin stated that this item would have several presenters, Kenneth Banks, Larry Reichart, Dottie Palumbo and Gary Calmes. 1 EXHIBIT 6 1 Kenneth started out talking about (2a) location of gas pipelines to include gas well sizes 2 and paths that was a request from the last meeting. We have used the data that was 3 provided by the Railroad Commission, Banks pointed out that there is a substantial time 4 lag. The information that we were able to get was released October 2004. Due to this, 5 there is a great possibility that the GIS does not reflect what is actually on the ground at 6 this time and should be considered as preliminary only. Banks pointed out on the 7 presentation that the pipelines are divided by sizes. There is a small pipeline proposed 8 that would be near Research Blvd. area. We have also received, since the creation of this 9 map, a preliminary proposal of a larger gas pipeline that would extend from the Hickory 10 Creek basin through the Rails to Trails all the way to TWU to capture from the well site 11 at that location. McNeill ask if this pipeline would be for a single well. Banks stated the 12 pipeline would be new, but it wouldn't be accurate to state that the pipeline would be for 13 a single well only. More wells will tie on to it. Mulroy stated that there would be at least 14 two wells on the TWU golf course. At this time, Banks asked for questions regarding 15 this item. Thomson asked why some are wells are plugged. Banks said there could be a 16 variety of reasons that a well could be plugged. The most common reason would be the 17 gas well is simply no longer viable and has been shut down. McNeill ask the difference 18 in a plugged well and a shut in gas well. Banks explained that a shut in gas well is one 19 that has been developed and will be available for future production. A plugged well is 20 one that was productive at one time and may no longer be economical to keep running. 21 Mulroy asked if we have contacted the major companies for their information. Banks 22 stated that the companies have been contacted however they are reluctant to provide the 23 information in a public forum. They have shared information on proposed pipelines but 24 have asked that we respect their privacy on this information. There are competitive 25 advantages associated with the pipeline distribution going in, in certain areas. Ifwe make 26 this information public, it could preclude any future information from these companies. 27 The existing pipeline information could be requested from them, however it would be 28 piecemeal. The advantage of getting this information from the Railroad is that it is 29 inclusive; the disadvantage is the time lag. The Railroad Commission data is not perfect; 30 there are pieces of information that are not included. There are options that we can 31 pursue on a local basis to try to obtain this information; it will require more work on the 32 part of the city. Mulroy stated that ultimately we want to be responsible for our own 33 map. Worst-case scenario, if an emergency happened with an explosion or catastrophe, 34 we would want to know where the pipelines are and how to tie them off. The fire 35 department will need a comprehensive map. From a revenue standpoint, Mulroy asked if 36 we have any compensation if the pipeline companies go through our right of ways. Do 37 we tax the pipelines on ad valorem basis for the value of the pipeline s stem? Dottie 38 Palumbo stated that we have several i eline a reements. 39 40 If they are actually in 41 our right of way, they pay $9 per linear foot. The process is that the companies have to 42 go through DRC and coordinate with all the cities various departments in their master 43 planning. One item of the agreements is if the cities need the pipeline relocated for any 44 reason, the companies have to relocate at their expense. The city tries to make sure they 45 bury their lines deep enough that they would never have to be relocated. Palumbo 46 believes the fee for collector streets is $1,500, for arterial street $1,000 and local street 47 $500. These agreements are based on a 10- ear a reement. The have to be renewed 48 eve 10 ears. 49 McNeill asked what other cities do. 50 Palumbo stated that the agreements vary from city to city. We have gotten Piano, 51 Carroll ton, Irving and Arlington's right-of-way use agreements and developed our 2 1 agreements from their agreements. McNeill asked if the fee is the same if there is a 2 natural gas pipeline like TXU. Palumbo stated that TXU is considered a gas utility so 3 they pay a franchise fee. Kamp asked how would we go about gathering all the data on 4 the map. Banks replied for pipelines, it would more than likely, be through the right-of- 5 way use agreements. We would have someone extract out everything that isn't included 6 in the railroad commission data and then entering that information. As far as getting the 7 information for gas wells, when the fire department issues a permit, it would trigger a 8 GPS location getting on the map with the associated information. McNeill stated that this 9 is a positive step in the right direction. We need the information when a company puts 10 any type of pipeline in. We have started to put in streets several times only to discover 11 there is a pipeline underneath. Thomson stated he believed there was an oil well. 12 Palumbo replied that she had called the company that was drilling the oil well and found 13 the following information. The oil well company had drilled into the water aquifer. This 14 well will not produce any oil because it was not completed properly to extract oil at this 15 point. 16 17 Action Items: Review permitting and taxing policies and look into the effort it 18 would take to provide more complete and accurate gas well and gas line 19 information. 20 21 Larry Reichhart (2b) discussed the effects of tree preservation ordinance on gas well 22 development/gas transmission lines. The intent was to have the gas well/gas transmission 23 line companies comply with the tree preservation ordinance. We complete a tree 24 inventory to see what trees need to be preserved. He explained that when the company 25 starts development of 100 acres, 25 acres of trees need to be preserved. 26 The only preservation right now for gas well mitigation is if they are in a flood plain. 27 That would be a one for one mitigation. Weare considering coming up with a formula 28 that if you take out a tree you will have to mitigate a tree. Maybe a one for one or 1.5 or 29 one for two. If we had a formula as such, we wouldn't need a tree inventory. As we get 30 going further with these transmission lines, it will become an issue trying to track all the 31 trees. 32 Martin stated that this discussion is very timely in that we will be dealing with this issue 33 very shortly; we have a company that wants to put a gas pipeline down our rails to trails 34 corridor. The plan is to put this gas line on the opposite side of the water line. When this 35 is accomplished, a large number of trees will have to be cleared. McNeill asked the name 36 of the company that would be doing this pipeline. Simpson stated that it would be 37 Crosstex. 38 Reichhart stated that we have just started talking to the fiber optic people providing 39 preliminary maps. Mulroy said that gas well development plat is just the overall 40 calculation of the property, nothing immediate needed right now as far as flood plain. 41 Reichhart replied, unless they are taking out more than the 25% of the trees, then there is 42 an issue. Typically, the companies aren't trying to take out trees; they do try to locate 43 around the trees. Mulroy said that if it is underneath the cap, Martin stressed when you 44 do that you put the burden on the property owner. The property owner understands the 45 effect of tree removal even though it isn't immediate in the resale potential of the 46 property. Martin asked if the committee was confident that would take place. McNeill 47 asked how that would be tracked. Martin said that would be a decision to be made, how 48 do you track it if you are tracking on a partial basis, and you are not getting any 49 mitigation upfront that puts the burden on the property owner when they come in to 50 develop. There is no guarantee that will happen. McNeill clarified "property owner has 51 the property, pipeline comes Ill, and is negotiated they take out 10 trees. How the 3 1 property owner wants to sell the property for housing projects, someone could come in 2 and say you have to mitigate 10 trees. Property owner could say they didn't know about 3 that. Martin suggested further, how do we know it was just 10 trees. Reichhart said it 4 shows on the development plats. If the plans come through Pre DRC, we know. We 5 aren't looking at private property easements. If someone sells a piece of property 6 through the middle of his or her property, we don't see that. Through Pre-DRC we can 7 ask for a tree inventory. McNeill asked how many potential spots are there we are 8 to have to keep track of this. Martin said look at all the properties that this is 9 going to traverse. Weare talking about mitigating each property at some future point and 10 time. Palumbo stated that gas well companies get easements going across property lines. 11 When they come to us, we make them follow the tracts of land as much as we can. Gas 12 wells go across several different properties, and when they file their development plat, 13 you could easily have 5 or 6 property owners, so it is hard to determine who would be 14 responsible. Palumbo also stated that you couldn't put houses on the gas transmission 15 lines. You have to go 20' to either side, and you can't put anything on the top of the line. 16 McNeill asked if it is our place as government to make that decision. He stated he 17 believes it is the property owners decision. Palumbo stated that we have an interest in 18 trying to maintain property values. McNeill disagreed. Reichhart said he didn't disagree 19 until that property owner comes in to complain. Mulroy said there is a burden of 20 diligence with any buyer or seller of property owner. Martin said the concern on the 21 other side is would you realistically ever expect any mitigation for any pipeline. Mulroy 22 said that it is ultimately up to the landowner. Martin asks how do we know what 23 mitigation responsibility for that landowner is. Mulroy said we wouldn't know until he 24 decides to develop the property, and then it works in the formula. 25 Reichhart stated what if the property is in the public right of way, rails to trails being a 26 perfect example. Simpson stated that it would be about 4,400 l/f, and they are asking for 27 a 20' permanent easement and a 25' temporary construction easement. You would have 28 to assume that you would loose 4,400 linear foot x 45' on the trail of trees. Thomson 29 clarified that you can't put trees or the trail on top of the pipeline. Simpson said that we 30 have been communicating with DCTA and they said the pipeline would have to be 31 pushed to the far southwestern section. There is also the question about whether anything 32 could be built if you were going to put a transit station on the rail trail, would the gas line 33 limit future plans. From a parks standpoint we are concerned about the character of the 34 trail and loosing the majority of those trees. Reichhart stated that from a mitigation 35 standpoint, what they would be removing would not equal 25% of the trees in the entire 36 rail trail corridor, which would mean no mitigation. Martin said that if you think about 37 the future use and if we do develop the rail system, there would probably be some 38 advantage to having trees on either side of the rail for ascetic purposes and noise 39 reduction; they would have an added value. Pete Kamp asked why there wouldn't be any 40 mitigation. Reichhart said that would be assuming that the majority of the rails to trails 41 corridor is tree lined. Simpson said that the 4,400 linear feet is just the section that has 42 the trees in it in this area. Reichhart said the remainder of the rails to trails has trees on it. 43 If you look at the entire property, even as the city, we could cut down trees as long as we 44 preserve 25% of the trees. You don't look at just the area being developed you look at 45 the entire property that we own. McNeill asked what is the entire length of the rails to 46 trails. Simpson said that it is 8 miles. McNeill said that would be less than the 25%, 47 Reichhart agreed. Simpson said the other thing related to mitigation and compensation 48 for parks, parkland is protected by state law. To allow this use the proposal has to go 49 though our city council for approval, council has seen the chapter 26 easements come 50 across parkland before. It also requires some kind of compensation for that use. On the 51 rail trail there are a couple of spots, depending on the route they decided to take. If they 4 1 take the southern route on Hickory Creek Rd, there is a section on Cross Timbers Park, if 2 they so the northern route it would cross Lake Forrest Park. Mulroy stated that this is a 3 proposition that is being brought to the city. Simpson agreed. Mulroy asked if Crosstex 4 is a utility. Simpson said it is not. 5 Mulroy asked what would be their choices if we do not strike a deal with them. In 6 Chapter 26, they have to prove out, that this is the only feasible option that they have. 7 Right now, this is the only alternative that they have shown us. 8 Reichhart said this is how hard it is going to be to calculate for the liner transmission 9 lines, how do we implement the tree preservation regulation as it is written. That is why 10 we talked about the 1.5 or something for mitigation. Mulroy said it has to be 11 proportionate. You can't be 1 to 1 or 1.5 to 1 because under the normal mitigation you 12 only have to replace 25% of the trees, which would be .25 to 1. Martin said that this 13 comes down to the methodology that you establish for that mitigation purpose. Even if 14 you want to use .25 depending on how you administer that, you could have some 15 mitigation vs. no mitigation. McNeill, from a practical standpoint that if we use a tree for 16 a tree or if they cut down four trees they have to replace one tree. Either they can pay for 17 that or they can plant the number of trees. Martin said you could either mitigate on that 18 property or you can pay. McNeill said the challenge with the pipeline coming down the 19 rails to trails is the aesthetics of loosing that many trees and noise barrier. Simpson said 20 that it would take out many trees which in some areas it is tremendously wooded. 21 Mulroy asked what size is the pipeline. Simpson didn't know. McNeill said that they 22 need 45' to get the digger down through there. He also said it also depends on the kind of 23 trees that are along the rails to trails. Mulroy said they ask for more footage than is 24 actually necessary. McNeill said we should start the negotiations with the reduction of 25 the easement width. Simpson said that at one point, the width was variable and we asked 26 for something more solid. The question was asked if the company has looked at what the 27 cost would be to go another route other than the rails to trails. Simpson said that is where 28 we are with them right now. They have only shown us this one route, and we said that 29 they would have to prove out other alternate routes. Mulroy said it would also depend on 30 your land configuration, how it is divided up. 31 McNeill said part of the challenge is knowing when something happens. What do the 32 companies have to do; they do not go through DRC with a pipeline. Reichhart said no, 33 not if it is a private easement. McNeill said is there any trigger on the lay in. Reichhart 34 said they are supposed to get a permit from the fire department. The fire department is to 35 inspect the installation of a pipeline. McNeill, when that occurs could something be 36 placed like a notice on the title for that property that is activity has occurred. In the 37 future, the deed could specify what has happened on this property. Mulroy said if you 38 mitigate now at .25 per tree, which may be an additional requirement above the existing 39 tree ordinance. The benefit of putting present day mitigation with that is that you will 40 change behavior. They will maybe locate their transmission lines where they don't go 41 through trees. Martin said that is what we want. Reichardt said that he would 42 recommend adding the .25 mitigation now to the gas transmission lines and fiber optic 43 lines. 44 45 Action Items: Recap, review and forward to 46 47 Martin stated the (2c) financial impact of gas well drilling is in the backup, and asked if 48 there were any questions. McNeill asked if this information was based on the 25-30 49 wells that are in the city right now, Banks agreed. McNeill asked where the 90% 50 depletion comes from. Calmes said that the appraisal district determines a production life 51 and volume for the gas well. They discount that 10-15 percent the first year. Calmes was 5 1 informed that the first year they lose about 90% of their production. After the first year, 2 the value of the well drops considerably. McNeill stated that there might be a huge sum 3 of money, but it won't last long. Calmes responded that the sum of money isn't that great 4 compared with the value of the wells. The tax rate isn't that great. Mulroy asked where 5 the revenue is going. Calmes responded that it goes into the general fund. McNeill said 6 that he doesn't think that money should be going into the general fund. It should be 7 earmarked and something should be done with it. The money will go away before too 8 long, it shouldn't just be dumped into the general fund to dissipate. Mulroy stated that 9 we aren't getting full compensation for the damage to our roads, so we should try to 10 make our streets whole first. Parks has collected about $54,000 in bonus money so far 11 and the money has been put in the general fund because there hadn't been any policy 12 discussions and council had not directed to put in a special fund. McNeill replied that 13 council has directed but the message didn't get across. McNeill said that he and 14 councilman Montgomery have been saying that the money needs to be set aside. There is 15 royalty money, ad valorem money and bonus money that has a finite resource and will go 16 away. All the money should go into a separate fund and then we should make decisions 17 on what to do with the money. Mulroy stated that the Mayor stated about three meetings 18 ago that the money should be treated as one time money and should not be dissipated 19 through out the general fund. 20 21 Action Items: 22 · Next meeting let us know what our choices are. Give us a recap of bonus, 23 royalty and ad valorem total dollars. 24 25 Martin talked about (2d) mineral rights vs. surface rights. He stated that Palumbo was 26 available for questions. Palumbo said that reasonable use fees would be decided by a 27 court. Is it reasonable? Can a well operator accommodate? Is it negligent? Weare 28 expecting this to change within the courts because of the entrance into urban areas. We 29 are monitoring legislation in Texas and in other states where they are trying to have a 30 state law for land use for gas wells. There is also the issue of road damage. We have 31 heard that within the last week that oil and gas well associations are going to the state to 32 try to repel any authority to collect money for damage to roads. McNeill stated that we 33 are familiar with this information but the public isn't familiar with this information. We 34 need to make sure that our citizens know that if they have mineral rights, they are in 35 charge. Banks asked for direction on how to progress with this information. McNeill 36 stated that he thought presentation to council and information on the webpage would be 37 sufficient. Reichhart suggested that we also have a place on DTV for this information. 38 39 40 3) Receive an update, hold a discussion, and give staff direction regarding Open 41 Space Master Plan. 42 43 Janet Simpson stated that after the meeting in October, there was a work session and a 44 public meeting on the open space master plan. The Planning and Zoning Commission 45 recommended approval of the plan. The subcommittee that worked on the open space 46 master plan had eight conditions they wanted to be considered. 47 The first one was to remove any specific sites that were listed under the priority locations. 48 Mulroy asked for Simpson's viewpoint on this recommendation. Simpson responded that 49 the description is broad in its description of planned areas and priority areas. 50 Second was to clearly identify and distinguish between open space resources and areas 51 that need to be protected. Open space resources are general terms and general areas like 6 1 flood plain and riparian areas. Again, the subcommittee would rather that instead of 2 talking about specific areas and protecting specific areas in the city, talk more in general 3 terms of riparian areas and natural habitats. Mulroy asked Simpson her thoughts on this 4 issue. Simpson said that if we deal with item number one that we have also dealt with 5 item number two. 6 Number 3 has already been accomplished. Dianna Sanchez and the planning department 7 have done a great j ob with consolidating master plans and putting a coordination tool 8 together. 9 Number 4 the committee had a concern with the term master plan, and preferred to go 10 with Open Space Concept Plan. Simpson stated think the content is more important. 11 Mulroy asked if the word "Master" was important for the sake of grants. Simpson said 12 that most grants are interested in an adopted plan. 13 Simpson read number 5, and responded we have a park land ordinance that requires 14 residential development to provide fees or land or fees in lieu ofland and the building 15 permit to state also per unit amount for residential development. Our ordinance is 16 specifically for neighborhood park development and nothing else. McNeill stated that he 17 would like to give the developments an option. They can dedicate it to the neighborhood 18 parks, trails etc., flexibility is very important. Mulroy stated that we agree to meet the 19 conditions on this plan and recommendations. 20 Number 6, the subcommittee wanted to reword the Implementation Techniques section to 21 Land Protection Tools and Techniques. Committee agreed that is not a problem. 22 Number 7, the five year action/implementation plan would be the next step after adoption 23 of this plan would be to move into the implementation phase. Committee agreed that this 24 is acceptable. 25 Number 8; hire a master plan coordinator to achieve Open Space Master Plan. McNeill 26 suggested that we take out the term hire, it could be someone that is already on staff 27 designated to be the coordinator. 28 Mulroy stated that we could accommodate the suggestions. Mulroy asked for a redline 29 document with the information. Mulroy said that we would recommend to council that 30 we were going to approve today as stated and then bring it forward for the council to 31 officially adopt. McNeill made a motion we forward the documents to council for 32 approval with the recommended changes that was recommended by P and Z and as 33 modified during the discussion. 34 35 Action Items: 36 · Generalize the specific sites on the open space master plan. 37 38 At this time, Mulroy had Dianna Sanchez to show her presentation for the Open Space 39 Master Plan on the GIS map. Sanchez showed aspects of the GIS map that they had 40 worked on for the master plan. 41 42 4) Receive a report and hold a discussion, and give staff direction regarding web 43 page development and 6 month environmental education campaign activities 44 that have occurred since the November 8, 2004 Environment Committee 45 meeting. 46 47 Martin stated that this is the time for the committee to let them know what they did like 48 and didn't like about the web site. Dieterle added that the site "went live" after the 49 holidays and had a good article from DRC on January 7. Since then, they have updated 50 the highlight section. The plan is for this section to be updated every two weeks. We 51 have updated the topic section and plan to update them at least once a month. Right now, 7 1 we are working on bio-solids and gas well information. Next step will be pretreatment 2 and the tree ordinance. Dieterle said that the topics will be covered on channel 42 and 3 include statements that will say for more information go to our environmental web site. 4 Denton magazine will also have the information. 5 6 7 5) Receive a report and hold a discussion regarding the process of information 8 exchange, staff review and municipal participation in state and federal 9 permitting process. 10 11 Banks asked for feedback from the committee related to municipal participation in the 12 state and federal permitting process. We have been involved in two major state and 13 federal permitting activities, one is for Safety Kleen and the other is for Acme Brick. 14 Banks believes we are at the point that we can evaluate. Banks would like to know what 15 was helpful to the committee, what improvements might be needed for future permits. 16 The air permit for Safety Kleen is not to far down the line. How did staff perform acting 17 as a liaison between the citizens, the City of Denton and the permit team themselves? 18 How much does the Environment Committee want to be involved in this process? 19 McNeill said that an executive summary would be the best. If the committee needs 20 further information, they can contact Banks. McNeill asked if Banks needs anything 21 from the committee as you go through these hearings. Banks said there are lots of 22 request from citizens for information. Banks would like to know if the committee would 23 like a summary of the questions being asked. Mulroy stated that a summary would again 24 be fine, if they have questions or need any information, they will ask. McNeill said it 25 would be helpful if council knew where these request were coming from. A standard 26 quarterly update would be great, unless there are specific issues as in Safety Kleen. 27 28 Action Items: 29 · Banks to e-mail updates quarterly 30 31 6) New business - This item provides an opportunity for Environment Committee 32 Members to suggest items for future agenda or to request information from the 33 Assistant City Manager of Utilities for future meetings. 34 35 Martin said this new business item is where we get input or instruction in where you want 36 to go for any new business that you want to add to the existing direction of this 37 committee. 38 39 McNeill asked how we were going to get rid of the "Goat Heads" in Skiles Park. 40 Simpson stated that when we put together the Integrated Pest Management program 41 together, we had two parks that we defined as totally organic. We were going to treat 42 pest with only organic methods. The parks were, Joe Skiles and Nettie Schultz. Because 43 of the soil conditions at Skiles it lends it selves to the stickers. If there are problems such 44 as poison oak, or fire ants we can treat them with chemicals and will be doing that at Joe 45 Skiles Park. We do post at the park the chemicals that are being used. McNeill asked if 46 we fertilize these parks. Simpson stated that IPM has been misunderstood. Some people 47 think that IPM means completely organic, and it does not. The best thing that we can do 48 at Skiles is to improve the soil condition. Parks plans to put down compost on the area to 49 try and improve the growing of grass. We typically only fertilize the athletic fields and 50 landscape beds. 51 8 1 2 3 4 5 6 7 8 9 10 There being no further business to come before the Committee, the meeting was adjourned at 5:25 p.m. Joe Mulroy, Chairman Howard Martin, ACM/Utilities Kim Mankin, Administrative Assistant 9 CITY OF DENTON CITY COUNCIL MINUTES August 1,2005 After determining that a quorum was present, the City Council convened in a Special Called Meeting on Monday, August 1, 2005 at 11 :30 a.m. in the Council Work Session Room. PRESENT: Mayor Brock; Council Members Heggins, Kamp, Montgomery, Mulroy, and Thomson. ABSENT: Mayor Pro Tem McNeill 1. The Council received a report, held a discussion, and gave staff direction regarding Emergency Medical Services (EMS) Billing and outsourcing opportunities. Laura Behrens, Administrative Assistant-Fire Department, presented information regarding the emergency medical services billing. She reviewed the EMS billing history and the method of billing since 1992. Billing methods included a flat method that was a single flat charge for all ambulance services, based on total operating expenses from the prior fiscal year and did not account for allowable adjustments. The conventional method billed on set rates, mileage and supplies, the amounts were based on Medicare rates or rates of neighboring agencies, was used by most agencies and full cost recovery was difficult. Umbrella billing used pre-set or defined targets considered reasonable and customary by insurance companies, differentiated billing between insurance companies and patient direct allowed for more cost recovery and required intense research and application of statistical methods to be successful. The current Denton method of billing included a flat rate plus mileage plus supplies. Denton's EMS billing currently had one of the highest collection rates compared to other agencies with in-house and outsourced billing. She reviewed current EMS financial statistics dealing with operational costs, administrative costs, and average cost of ambulance run and average cost of recovery per call. Council discussion included: . Philosophy of sending engines out on calls with ambulances. . Consider having ambulances at each station so as not to send out engines with EMS calls. . Only dealing with cost of recovery of ambulance costs and not with cost of engines provided. . Number of times ambulance goes out with no services provided. Behrens continued that all payers were billed the same and remaining balances after payment were forwarded to secondary insurance or the patient. Staff currently worked with 10 major insurance companies but also had 500 miscellaneous insurance companies on file. There currently was a 3% denial rate on submitted insurance claims. After reviewing internal procedures and surveying neighboring cities, it was determined that there were ways to improve billing methods. Intermedics was a firm that was being considered for Denton's EMS billing. Using that firm's billing methods, there would be a 22.8% impact on insurance billing, a greater cost recovery, differentiated billing of insurance and private pay, the tracking of insurance information through daily searches resulting in increased billing, statistical gathering, and addressing identified needs within the department. Outsourcing would provide increased revenue, would be more efficient with effective use of personnel, provide improved statistical EXHIBIT 7 City of Denton City Council Minutes August 1,2005 Page 2 information, maintain compliances and provide cost savings. Items to consider included closeout of the current system, perceived loss of personal service, longevity of the outsourcing company, rates that would be dependent on industry standards with possible fluctuations, and collections. Council discussion included: . If the service were outsourced, what would be the number of full-time employees to reassign - one full-time employee would be maintained to work EMS billing/liaison with outsourcing firm. . Consider providing information on how savings would be realized. . Why were the co-pays waived - city residents already paid taxes so the co-pay was waived. This was a potential issue to consider, as there might be a substantial increase in ambulance costs. . Find out more information regarding the denial of insurance claims. Consensus of the Council was that while there appeared to be a potential benefit to outsourcing, more information was needed with proposals from several companies. 2. The Council received a report, held a discussion and gave staff direction regarding the Denton Open Space Concept Plan. Janet Fitzgerald, Director of Parks and Recreation, stated that the Denton Comprehensive Plan envisioned an extensive system of open spaces for recreation, wildlife enhancement, and flood control. She reviewed the amount of open space in Denton today and the definitions of parks, open space, riparian and floodplains, Cross Timbers land, and agricultural lands. Council Member Heggins left the meeting. Fitzgerald continued with setting priorities. One was assessing the threat and resource values of land in and around Denton. Threats included areas that were most likely to be developed and potentially eliminate open space. Resources included areas that remain undeveloped and held value as open space. Major recommendations included continue trails or trail corridors, continue with regional park acquisition, protect and restore ecosystem habitats, and encourage scenic corridors. Another priority was the urgent category that included environmentally sensitive land that was under immediate threat of development. Near term priority categories were sites that were zoned for high intensity development that should be monitored for any indication of imminent planning applications. Near term general areas included Milam Creek Tributary, upper reaches of Hickory Creek, BriarcliffPark area, Cross Timbers and Lake Forest Park area. Long- term priority category included larger tracts of land that were not zoned for intensive use, but which might be developed over longer periods of time and should be considered for environmental overlay zones. These areas could be restored as prairie, maintained as riparian areas, or set aside as wooded preserves in the context of the overall development. Unique or opportunity priority areas included occasionally particularly desirable sites that would become available for acquisition and would be of substantive interest. A summary of potential implementation strategies included the transfer of development rights, conservation easement City of Denton City Council Minutes August 1,2005 Page 3 purchase, land trust donations, fee simple purchase, open space bonds funded by property tax or dedicated sales tax. Council questioned why priority locations were removed from the document. Fitzgerald indicated that there was a concern that land values would be affected if specific sites were pointed out causing the land to be used in that manner. She continued that the recommendation was to develop a five year action/implementation plan after the adoption of the Open Space Concept Plan to include review of the organization to allow for the coordination of the plan rather than hiring of additional staff, evaluate the Park Land Dedication and development ordinance to include trail funding, and provide a red-line document prior to any public hearing at city council meetings. With no further business, the meeting was adjourned at 1:20 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS City of Denton Open Space Masterplan The Denton Comprehensive Plan stated that "The City of Denton recognizes the need to value it environmental resources appropriately. By identifying, protecting and preserving those areas with ecological value, further loss of our natural heritage can be avoided." While Denton is a great place to live and work, part of what defines the quality of tW€- life in Denton is ready access to open space, both in the City and in the many recreational opportunities nearby. In addition to the quality of life benefits, open space provides wildlife habitat, assists in cooling the fierce heat of the Texas summer, improves air quality, cleans and filters water, and assists in flood mitigation. DRAFT 10/2002 The Importance of Parks and Open Space: Natural areas provide opportunities for passive recreational activities such as hiking and nature studies, while trees provide shade in parks for sitting areas. Quality natural environments and open space amenities have become key decision making factors in the location of employers, as they try to attract workers. Access to parks and open spaces, augmenting a place's quality of life has been shown to add to real estate values. Landscaping with trees, shrubs and perennials minimizes the need for mowing grass and conserves energy and money. Natural areas provide habitat for a diversity of flora and fauna - conserving and protecting species diversity. Plants play an important role in recycling of carbon, oxygen, and nitrogen compounds in the atmosphere. Trees and shrubs are essential to soil development and protect streams and other watercourses from erosion. Plants improve the quality and supply of ground water slowly releasing moisture into the water table from root systems~ Trees improve air quality by removing airborne pollutants through their leaves DRAFT 10/2002 Because of the many critical roles open space can plan in our lives, it has come to be referred lifr " "G to as "Green n astructure. reen Infrastructure is our Nation's natural life support system - an interconnected network of waterways, wetlands, woodlands, wildlife habitats and other natural areas; greenways, parks a~d other conservation lands; working farms, ranches, and forests; and wilderness and other open spaces that support native species, maintain natural ecological processes, sustain air and water resources and contribute to the health and quality oflife for America's communities and people." Manufactured Homes ......... ...... . ...F..tt ETJ ......... v..t The Purpose of the Denton Open Space Plan All the benefits of Open Spaces will not be realized without a plan of action. This plan provides the framework by which Denton may pursue more specific actions to preserve environmentally sensitive lands and open space. The residents of Denton have clearly articulated their desire to retain open space and the unique character of the region. This plan is meant to build on the foundation laid by the Denton Comprehensive Plan, and the newly adopted Denton Development Code. Open Space in Denton Today Currently, of the 40,950 acres of the Denton City and ETJ, 3,030 acres are in public ownership of which 1,400 acres are in parks or protected open space. Another 18,000 are vacant, privately owned lands that are undeveloped today. It is on these lands that future development will occur, and where opportunities for new open space exist. Land Use .., Agricultur o Vacant - ~"'I"''I Commercial p Industrial 0 Tnr.i.. ..inn~1 Multi-Family @ Manufactured Homes @ Open Space @ Recreation p Single-Family @ Public Ownership The Denton Parks and Recreation Department currently maintains 28 parks, open space and hundreds of acres of yet to be developed land designated for parks. This inventory ranges from active, full-service facilities, such as North Lakes to the public green surrounding the Courthouse. Through the Greenbelt Trail, the City has also realized huge successes with parkland that is utilized in a natural state. In addition, the City has developed an extensive system of bicycle trails and has begun a more comprehensive pedestrian trails system including rail trails, equestrian facilities and greenway trails. Today this extensive inventory includes 23 parks and 4 open space preserve areas, totaling just over +GOO 1,200 acres of land. Parks We all know that parks are important to people. Not only do parks provide a respite from the noise and bustle of traffic and crowds in cities and towns but they also provide the stage for a whole range of social activities. Parks, as a distinct type of open space, are publicly owned recreational areas. They may be a few acres of playing fields, or hundreds of acres of natural areas for hiking, or passive recreation, or a combination of both. However, they are meant to be used by the public, and have open access. Open Space DRAFT 1012002 Open Space is a more generic term that includes parks, but also private areas that provide some of the benefits of open space. Therefore golf courses and cemeteries can be considered open space, as are privately owned farms or ranches that have been conserved through purchase of development rights, or natural areas that are privately owned, but similarly conserved. These latter, privately owned open space areas provide many public benefits, without the benefits of entry by the public, but also without the tax burden of ownership and maintenance. One of the most important issues of urban development in the coming years will be identifying and managing areas that have environmental and social importance. Historically, environmentally sensitive areas have been destroyed, in the name of 'progress' to make way for development. Wetlands have been filled, streams buried tumed into culverts, and lakeshore areas filled and reclaimed. However, in the last few decades, the people of Denton have become increasingly aware of the value of a healthy natural environment and open space. DRAFT 10/2002 Floodplains & Riparian Areas "Riparian' 'refers to those areas that are adjacent to streams and lakes; often, it is also used to refer to floodplains, wetlands and natural habitat found within those areas. Riparian areas are beneficial to water quality when they are preserved and when the streams are lined with natural vegetation. These areas, especially when vegetated, provide stream bank stabilization and filter and retain storm water flowing across the stream buffer, thus helping to retain charmel location, reduce flood potential, provide important wildlife habitat and help to keep streams and surrounding areas cool. The Denton Development Code classifies these as the areas within 100 feet from streams that drains over a square mile in size, and 50 feet from streams that drain less than a square mile. These streams, and the point at which the stream drains less than one square mile are on the official Environmentally Sensitive Areas map. The Denton Code also works to protect these areas by providing property owners and developers with significant incentives to transfer development densities away from riparian and floodplain areas. However, some of the larger riparian areas and floodplain have such large significance for open space values, they should be considered for open space acquisition, for drainage and flood control, habitat preservation, air quality benefits, and passive water quality treatment. Some of these areas would also provide passive recreation opportunities such as hiking, fishing, or canoeing. Water related habitat lands are farther from the stream, but occupy important floodplain areas and contain generally undisturbed native ecosystems and wetlands important to the stream health and the community's air and water quality. In Riparian and Water Related Habitat land&, Lands, most development activities are prohibited. The intention is to leave these areas in a natural state, including most of their native vegetation. This benefits many elements of Denton's environment, most notably air and water quality and flood mitigation. F100ds have been a problem in Denton's urban areas for much of its history, as some of the best places to build in town often are the floodplains of Pecan Creek. In addition to preventing property damage, restricting development in floodplains serves many other important functions. These include water recharge, protection of wildlife riparian habitat, and floodwater storage. The Denton Development Code has fairly strict development limitations on development in floodplain. There are just over 3,000 tax lots that he-lie partially within the 100-year floodplain, with roughly 600 of those parcels being completely contained within one of Denton's many., floodplains. As a result a significant number of housing units and many businesses already have located in the floodplain, including some of Denton's most urbanized areas, such as the downtown with Pecan Creek running right through it. Cross Timbers 6.Qak l1,and Cross Timber oak areas are unique upland habitats to the Denton area. The ones considered significant for open space values are generally larger than 10 acres or more and support a unique upland ecosystem. Standards in the Denton Development Code in these areas require that at least 50% of the habitat in these large stands be conserved. Approximately 75 percent of the Cross Timbers and Prairie vegetation areas are utilized as range and pasture. Major crops on the sandy Cross Timber soils are peanuts, fruits, sorghum, wheat, oats, com, and forages. Dairy operations are common, but beef cattle cow-calf operations are the predominant livestock activities. Agricultural Lands Agricultural lands are valued in Denton for many reasons -Jheir beauty, their contribution to the economy, and their value as open space and buffering from other uses. Agricultural lands protection often is controversial, frequently because agricultural issues are poorly understood. An important aspect to consider when discussing agriculture is that it is a business and, as with any business, profit is essential for its continuance. Residents who move onto agricultural land because of its pastoral nature often are disturbed by the necessities of modem a-agriculture: around- the-clock harvesting, manure spreading, pesticide and herbicide spraying, and the presence of strong odors and flies. Meanwhile, suburban residents can disrupt the business of agriculture by clogging roads with traffic, making the transport of agricultural equipment difficult and hazardous, owning animals that harass livestock, and filing nuisance complaints against farmers. In agriculture, it also is important to understand that a farmer's land is his or her primary capital asset after a lifetime of work. Urban residents value the open space that agricultural land represents, but zoning that restricts land use to agriculture only is often resisted by the farmer if the land can be sold for urban uses - as that will maximize the return to the farmer. DRAFT 10/2002 In Texas, where county zoning is not permitted, agricultural land protection can best be accomplished by either transfer of development rights or by the purchase of conservation easements, or agreements in lieu of annexation. (See Implementation Chapter for specifics) Other wWildlife hHabitat Important wildlife habitats include prairies and riparian areas as well as forested areas such as the Cross Timber lands. Many species' existence depends on the continued health and connectivity of these habitats. White-tailed deer, raccoon, armadillo, squirrel, quail, and mm+rning dove are just a few examples of the abundant wildlife in the regIOn. DRAFT 1012002 Setting Priorities Threats to Open Space With the hundreds of thousands of acres of open space that are in and around Denton, a system of prioritization must be established to identify those lands that are best suited to protection. Utilizing the power of Geographic Information Systems (GIS), computer-mapping models have been created to assess the threat and resource values of these lands in and around Denton. This computer model is built into two distinct parts. The first model analyzes the resource potential of all the land, while the second calculates potential threats to these resources from development. Together, these components are brought together to determine that land that is both of most resource value, and that is most threatened. The result is a mapping of areas with the mathematical highest priority for protection, preservation, or acquisition. -..... ..... DRAFT 10/2002 Value of Resources Threat of Loss ...... ,:,':?~ .~ !.:.~~^<:?: '\. ~ ... .: ~.", ( ~.~ tj .....~ ^. ~ I.~ " 'J..;'..V( \. \ !.. l . ..'" ~ I~. Floodpl a; n .1nt ...... ..... ....., Sewer Roads DRAFTt0l2002 Composite Map ~~'ff~'. .-- . .' . Undeveloped Lands Land areas that have yet to undergo significant human alteration are more valuable as open space for numerous reasons. Of utmost importance, conversion to open space can be accomplished without any displacement of human settlement, helping to ensure that no individual resident is forced to take on an undue burden for the good of the rest of Denton's residents. Additionally these lands will be both cheaper to acquire due to lack of development and more likely to contain habitat and natural areas that are considered valuable as open "n::lrp Environmentally Sensitive Lands Many of the key habitat and open space resources occur on lands identified in the Denton Code as Environmentally Sensitive Areas. In determining potential value of open space, Floodplains, Riparian Habitat and Upland Habitat are key factors. These areas contain not only areas that are likely to be relatively undisturbed, but also areas that feature prime habitat for a number of species. Preserving these lands can playa crucial role in retaining diversity of species. Residents will also reap the rewards of protection through such issues as flood control, lower temperatures in the summer, better air quality, and access to both the natural areas and potential trails that might be run through these areas. These lands are not as valuable to land owners, as the building potential is lower; accordingly, as with undeveloped land above, these areas will be less expensive than developed, or easily developable areas. Threats leadin2: to loss of open space Proximity to roads and service The Proximity of open space to infrastructure can help to estimate how threatened a specific site may be. If there is already infrastructure in place, such as roads and sewer, then an area is likely more susceptible to new development. By recognizing these areas, and those where services will soon be extended, a potential threat from development can be identified. Future Population or Employment Concentrations The zoning types in the Denton Code carry much detail, ranging from landscaping to allowed uses. Paramount to Open Space planning is the land use, and subsequently the intensity of future development. Further, while not proscribing zoning for areas outside the city, but inside the ETJ, the Denton Comprehensive Plan provides an estimation of the expected future development density. Densities were analyzed in a gradient fashion, with highest densities having the most potential threat to open space resources. This calculation of likely future was used in conjunction with the proximity of roads and services to determine the combined potential threats from development. Access to population The current Denton parks system serves most of the population with parks within 'fa- y. mile walking distance. This is quite a high standard for the provision of open space. New development, however, will need to be served with additional open space outside the existing City Limits. In addition, completion of the system of trails within the city should remain a high priority as this contributes the interconnectivity of the overall system of open space as well as to accessibility to a 'cler population. DRAFT 10/2002 Working toward Consensus - The Denton Open Space Workshop On February 27, 2002, the City of Denton sponsored an Open Space Workshop to help draft a plan for the Denton region. The workshop was designed to help develop both a priority list of sites for the Open Space Network, plus recommendations on methods necessary and a decision making structure to help decide future questions of open space need. The workshop process enabled participants to choose which areas they felt should be of the highest priority and give valuable input about the future of Denton's open space. Participants worked in two small groups to create alternative plans, and those plans were analyzed. The plans were then synthesized into one final conceptual open space plan that incorporated all the key themes and ideas presented throughout the workshop. The workshop resulted in an interconnected open space system featuring continuous trail linkages among the existing and proposed open space acquisitions. The workshop provided numerous specific ideas for the enhancement of the open space system that will form the kernel for its expansion. Most of the ideas are applicable to the wider landscape and can be I interpreted~ Open Space Plan - Introduction Key Plan Elements The plan includes the primary elements that are described in the following discussion. As a plan, the map should be interpreted, not as a parcel-specific plan, but rather as a guide to a conceptual open space master plan. There is considerable flexibility among the component parts in terms of implementation. Conservation sites may ultimately be acquired or dedicated as open space through the development process, and acquisition sites may be partially developed in exchange for public ownership of key areas, but it should be a guiding document for the development of a comprehensive open space system in Denton. ... N E9 ~... -- .......- ....- - ............. .._- ~ . DRAFT 10/2002 Trails or Trail Corridors The Community Trail Network Trails are to be both regional and local in scale and should provide potential destination oriented trips such as work or shopping while also providing a recreational component. Trail networks are identified that establish new, or that enhance existing, regional and cross town routes, connecting major centers of activity with non- motorized routes. Additionally, enhancing the pedestrian connections along local and regional transportation routes also is important. A variety of trail types allows for many different uses. For example, a good trail system employs both hard and soft surfaces. Hard surface trails are generally for use by walkers, skaters, bicyclists, and people with disabilities. These trails are the ones which will serve both recreation and transportation functions. Unlike the hard surface trails, which might start off as natural and only later be paved when funds are available, the soft surface trails will serve the Denton's nature preserves and other areas where the focus on natural resources takes precedence over the need for mobility. In addition to pedestrian-only trails through sensitive natural areas and off road bicycle trails in less sensitive ones can provide both important access to Denton's Open Space and important transportation links. Denton currently has a trail network that runs just under fifty miles in length. The most notable of Denton's trails are the Ray Roberts Greenbelt connecting the City from Lake Lewisville all the way to lake Ray Roberts, and the more recent Rail to Trial conversion extending Southwest from Downtown Denton to beyond the city limits. Many of the drainages within town, such as Pecan Creek for example, have many places where 'Volunteer" trails have been created to supplement the official trail network. These 'Volunteer" trails are a result of people walking or biking over the open land, in essence showing us where they would like the improvements. Additional unofficial trails can be seen at North Lakes Park. Regional Parks Regional Parks are places for recreation, education and rejuvenation and provide for a vast array of native fish and wildlife. Regional parks are unique jewels featuring sensitive habitats, awesome landscapes and views, trees, heritage buildings and sites and basic facilities. The North Lakes Park off of Bonnie Brae Road, just North of University Drive is a shining example of a Regional Park. lt offers a range of recreation alternatives and serving residents from all parts of the city with its ball fields and courts, Community Recreation Center, Trail and wildlife to name a few attractions. North Lakes Park is also well positioned to serve a future expansion of population to the north, running up to and just past Loop 288. Ecosystem Habitat Many of the habitats in the Denton region have been degraded over the past decades, and in some cases permanently altered, by urban development and sprawl. Protecting and restoring these habitats requires an understanding of comprehensive ecosystem function and all the interconnections that combine to support the health of any particular habitat. An ecosystem approach to management habitat recognizes the interrelated nature of air, land, water and all living beings. Rather than geopolitical boundaries and departmental divisions, this approach calls for creative partnerships that look at natural boundaries, such as watersheds, as the unit of management. Participants at the workshop identified several areas important for their quality ecosystems and amount, or diversity of habitat. One of the highest ecosystem priorities identified is the Hickory Creek drainage, stretching from Lake Lewisville up to at least 1-3 5W At just about the same level of interest to the group were the Pecan and Cooper Creek drainages. As these two streams get closer to Lake Lewisville the amount and diversity of habitat increases, while at the same time there is less human alteration visible. DRAFT 10/2002 Scenic Corridors Scenic Corridors are linear open spaces paralleling major thoroughfares that provide a sense of openness for the community by preserving the natural setting, providing views of nearby hilltops, linking vista corridors along major washes and buffering adjacent land uses from traffic. Access points along the corridor make it possible for residents and visitors to experience these areas through hiking, horseback riding, biking, nature studies, bird watching, scenic viewing, picnicking, and more. Scenic corridors are generally described as "the view from the road" and can best be defined as the visible land area outside a road right-of-way. They vary in width according to topography and vegetative cover; flat open areas will have wider corridors than steep, narrow canyons or densely wooded areas. Denton's most popular Scenic Corridor to date is the Lake Ray Roberts Greenbelt, providing access for hikers, bikers, horses and even canoe and kayakers. Participants saw much value in continuing this greenbelt South, to and along Lake Lewisville with an eventual connection to the existing Rail to Trail conversation leading Southeast from town. Additionally much support was shown for a new scenic corridor connecting the Greenbelt to Sherman Dive along Clear Creek. Criteria for Delineating Scenic Corridors Angle and Duration of View The angle at which the landscape features may be seen from the roadway, in both directions of travel, the foreground features framing them, and the period of time they can be observed all bear on the delineation of the corridor and must be taken into consideration Topography When landforms, such as the crest of a ridge bring the range of vision from the roadway close to the right-of way, the entire visible area should be included in the corridor. DRAFT 10/2002 Priority Locations Urgent Environmentally sensitive land that is under immediate threat of development is the highest priority for consideration. An evaluation of potential codes that might protect the critical resources is the first stage. This will establish the basic core that can be protected under regulatory processes. Secondly, the proposed development design should be reviewed to evaluate the degree to which it accommodates other resources that are present on the site. There are often possibilities for improving the sensitivity of the design in the context of the existing resources. ~ Typical Urgent Sites Lower Reach of Hickory Creek Today the South East Denton Ranch Lands are host to The following are general locations and represent Beginning at Fort V'forth Drive, tIhe Hickory Creek area Drainage flows southeast toward its confluence with Lake Lewisville. With much prime habitat and its close proximity to residents in the southern portion of the city, Hickory Creek is a valuable for habitat protection, trail potential, and access to nature. Preservation of this efltH:e-corridor is also vital for pollution control. Much of this area is currently owned by the United States Army Corps of Engineers. Land owned by the Corps can often, and should in this case, be protected through public easements. The use of easements being much more economical than outright purchase, and the unique ownership situation both make this site a distinct short term possibility. The City has had success to date in signing agreements where the city will agree not to annex the property, if the owner declares that he or she will not develop the property to urban levels. types of open space areas that indicate the highest priorities for consideration. These locations were identified because they are important open space resources, such as flood plains, riparian areas, historic and cultural locations, and/or environmental sensitive areas. a ',vandering herd of Longhoms. This site has cultural ~Agricultural and Ranch Lands These lands have cultural value as well as being a fine example of quality prairie land. These lands would be a valuable asset as a regional park combining a fine natural environment with large areas that could be developed as recreational facilities. It could also support prairie restoration. These lands could be considered prime for development due to its size and its location in Denton. With its relative lack of environmentally sensitive areas properties such as this are may prove to be very expensive to acquire. Unfortunately, sites of this size are not very useful if only small easements are purchased. Therefore the South East Denton Ranch Lands Therefore this type of land tract would likely have to be purchased outright with public monies. ~toDs South of Denton (Pilot Knob) Historic an Cultural Locations Pilot Knob is a 900 foot high protrusion located southwest of Denton on the eastern edge of the Grand Prairies, one of three major physiographic regions in Denton County. The knob, capped by dark bro,:," arenaceous ironstone, consists mostly of sandstone. Centuries of running vmter have formed three cementlike sandstone ledges which, from a highest points in north central Texas, Pilot Knob "vas used as a lookout station or signal point by members of the Caddo Indian confederacy, by Spanish and American pioneers, and later by Texas Rangers. Sam Bass lookout or hiding spot. In the 1890s it became a favorite picnic spot for family outings..J1! addition to agricultural and rach lands, there are other land areas that hold significant cultural value to the Denton community. These locations may be unique land formations and/or locations of historic events that have become icons to the Denton area and should be protected or preserved. DRAFT Clear Creek Natural Area Just Northeast of the city limits Clear Creek flows toward the East through some exceptionally well preserved lands. Acquisition of lands in this area can provide a full array of benefits, ranging from trail linkages and access to nature to habitat protection. Sites such as this can also be excellent locations for interpretive centers. The most urgent target for this drainage is tho land surrounding tho crossing at Shorman Drive and continuing along to the east v/ith the Eastern portion along Hardee ~ a prime target site. Should include areas most likely to be affected by development first. Currently this is the most eastern sections of Clear Creek. Preservation of this entire corridor is also vital for pollution control. Pecan and Cooper Creek Drainages These two roughly parallel drainage ways were highly valued by the participants at the workshop. Running from Loop 288 to Lake Lewisville, these corridors provide key trail linkages, important access to open space, and preservation of important habitat. These areas are unlikely to be host to any significant public facilities or destinations and therefore are likely best candidates for protection through easements, with outright acquisition as a last resort for any gaps that occur. DRAFT 10/2002 Near Term Sites that are zoned for high intensity development should be carefully monitored for any indication of imminent planning applications. Any available information on the type of proposed development, number of units and resource lands that might be compromised should be ascertained as soon as possible. Early negotiations with the landowner should address the most valuable resources on the property and potential for protecting or conserving these. Potential acquisitions should also be considered, if the developer is willing to consider this as an option. Additionally for larger developments easements or ownership may possibly be obtained as either an exchange for park fees, or to alleviate the property owner's liability on land that he or she leaves undeveloped. Near Term Sites Include: Upper Reaches of Hickorv Creek From University Drive Hickory Creek flows southeast toward its confluence with Lake Lewisville. The portion lower reaches of this stream corridor from Fort 'Horth Drive dO'v'm to the lake itself has have been identified in the "Urgent" section as a top priority. The ~ reaches section bet'v'.:een University Drive and Fort 'Horth Drive would make an excellent addition to the previous piece. Adding this stretch will allow the City to build on the trail network, protect additional habitat and provide more public access to open space. With the entirety of the corridor in public ownership, t-Ihis trail could rival the Ray Roberts Greenbelt as an amenity for Denton's residents. Unlike the lower reaches, the ownership patterns in this stretch are more complex. While there should be potential for utilizing easements to grant public access there are likely to be situations where outright purchase will be necessary. Also like the lower reaches, agreements in lieu of annexation may also be employed. As with the lower reaches, pollution control is also an important motivator in protecting this property. Roughly paralleling Locust at the northern edge of town is a tributary of Milam Creek. Water from this creek ultimately flows into Clear Creek. Milam Creek Tributarv As trail linkages are established along Clear Creek this site could be added to the inventory. A trail in this location would provide access in a growing portion of Denton, allowing many to access the greater trail system, including the Ray Roberts Greenbelt without needing to drive. Additionally this site could provide additional access to nature for the new residents that will be living in the area. This is a smaller creek, draining less than one square mile. As a result, the riparian and floodplain protections are less comprehensive than on other streams. Because of the lower level of protection, the parcels along this stretch are more developable than similar parcels along other, larger streams. The higher degree of develop ability will by necessity result in higher prices. While it may be possible to obtain some of this land through donation, much will need to be simply purchased, either outright, or as easements. Small sites such as this, which fit into more of a long-term vision, are often elevated in priority to suggest purchase early, before development pressure in an area begins to affect land prices. Fletcher Branch Athletic Complex of Hickory Creek The Fletcher branch of Hickory e.Greek flows from the southern end of town, due south until it reaches the Creek. Roughly halfway long this branch sits a large area of undeveloped land, roughly between Ryan and Hickory Creek roads. This site has much potential as an athletic complex activity park. Further, with the completion of the Hickory Creek greenbelt, this site could become a convenient access point to Denton's trail network. The branch itself provides potential as a trail linkage as well. While the trail portion may be accessible via easement, the land for the complex itself should be planned as outright purchase. southviest of I3 5E and "vest of State School road lies an area ';/ith significant en'iironmental value. Included on the site are sensitive floodplains, riparian and habitat areas. This land is not a key site for public access, howe'ier it is important for protection of habitat, flood control, and species diversity. Easement should be employed to protect this land from future impacts of development. Long Range Larger tracts of land that are not zoned for intensive use, but which might be developed over longer periods of time should be considered for environmental overlay zones. U sing the tools currently in the Denton development code relating to transfer of development rights, some of the sites available for rural density development could be configured as conservation developments. This style of development clusters rural housing while maintaining conservation easements accessible to all adjacent landowners. These areas could be restored as prairie, maintained as riparian areas, or set aside as wooded preserves in the context of the overall development. An environmental overlay could be inclusive of many separately owned tracts of land, which could be addressed individually as development DRAFT 10/2002 Complete Trail Network occurs. The majority of the scenic or waterway corridors listed in this report are intended to be accompanied by trails. As these areas are protected the City will find that it has a truly unique opportunity for a connected trail system both throughout the city and beyond to Denton's natural areas. Most of these trail sites will be acquired through the sites listed in this report. However, there will no doubt be areas where gaps will occur. In many cases, the City may have to purchase land or easements necessary for completing this system. The City may also choose to use nearby roadways to link trails that are otherwise not linkable. These trails may also be acquired through donation at times of development. The trails, fundamental to this Open Space Plan are shown in detail on the accompanymg map. Sherman Drive Scenic Corridor Sherman Drive, extending from Loop 288, crossing Clear Creek, and on until just past the Ray Roberts Greenbelt was identified in the workshop as a Scenic Corridor. Much support was shown for a new scenic corridor connecting the Ray Roberts Greenbelt to Sherman Drive along Clear Creek. Unlike many of the targets in this plan this area is not intended for trails or habitat preservation. This corridor is intended to provide an elegant corridor for autos entering and leaving Denton. Methods of protection will vary, and the standard is not as high as in the waterways. Not all development needs to be precluded; this area could even be home to some clustered rural housing without crossing the intent of the scenic corridor. This roadway will function as a natural gateway for travelers. Much of this land is not currently within the Citv of Denton's iurisdiction and would require extensive partnerships with other government entities and private landowners. DRAFT 10/2002 North Locust Nei2:hborhood parks North of Loop 288 and '.vost of Locust sits a largo area of undeveloped land. There are currently a number of large, undeveloped tracts of land in the With its connection to Milam, and ultimately Clear Creek, this area could provide an excellent access point to Denton's network of trails. The large size of the site, along with its proximity to expected future development give it much potential as a location for one or more neighborhood parks. This land would need to be obtained through outright purchase, but may be aided by parkland donationsdedication, and even fees in lieu of land for nearby developments. Northwest Urban Trail Much future development is expected near the intersection of Loop 288 and I-35W Along with, or prior to this development a trail system should be put into place. The route could be roughly circular connecting both sides of each major roadway to each other and to the trail network located to the east. The precise location should be determined through a localized process. Unlike many of the other trails mentioned, this trail does not follow any significant waterway. This means that donations or easements that may normally result from the need to protect the waterway will not apply. There may however be potential for donations of land during time of development. Easements may also be employed for this site. Stagecoach Road Area ar Northeast Denton North of Mingo Road and east of Loop 277 there sits a large area of relatively undisturbed land. This area, while not containing any significant stream related habitat, could be an important piece of open space for nearby residents. Workshop participants felt htat this site would have to be purchased outright, but would be a worthwhile investment. Unique or Opportunity Sites (dependant on availability) Occasionally particularly desirable sites become available for acquisition that would be of substantial benefit to the entire community. There are several examples of particularly fine sites that have the potential of helping define the community. These should be shepherded into public ownership using any appropriate tools to assure their protection for the community benefit. Key Unique or Opportunity Sites Large Sites Containing Habitat As a general rule all commercial, intensely zoned parcels greater than 10 acres in size that contain either water related or upland habitat should be examined for potential protection, through either acquisition or easements. Intensely zoned parcels that contain either water related or upland habitat should be examined for potential protection. Sites Containing Prairie or Park Potential There are several sites around Denton that while they contain quality prairie lands, are not being singled out in this analysis. This is partly because there is little to distinguish these sites from one another, and protecting all of them would mean using up a large portion of Denton's buildable land supply However, these sites can play an important role. The areas inside the city are well served by neighborhood parks. As development occurs, monitoring other suitable sites in developing areas can help to ensure that the level of park service remains high. There is no general rule in terms of acquiring these properties, as each case may be different. DRAFT 10/2002 Daylight Downtown Streams Several portions of Pecan Creek and its various branches have been placed underground. These streams are often referred to as the WP A drainages, as they were construction by the works progress administration. Many urban areas have begun experimenting with day lighting or bringing these streams back to the surface and usually adding trails. Sometimes this involves rerouting the stream, but more often channels are simply opened up and the banks reconstructed. These streams can add beauty to an area as well as provide business opportunities such as outdoor cafes that are oriented toward the stream, and a trail along the side. Culp Branch This stream running near and ultimately into the Elm Fork of the Trinity could be useful for pollution control, access to nature, and simple preservation. Multiple methods of protection could be employed, but will likely involve either acquisition or easements. This stream, especially just prior to the confluence was highlighted by the workshop participants. Many such similar situations may arise as development or even further study brings additional areas into the spotlight. DRAFT 1012002 Implementation Tech.'liques Land Protection Tools and Techniques Acquisition Of all the implementation techniques, this is the most flexible, and allows for the permanent ownership of land, the full right of access by any public member, and the full rights of management of the land in the public interest. It is also the most expensive, not only for the purchase price, but the land is removed from the tax roles, no profitable enterprise is conducted on the land, and it then becomes a public burden for maintenance. Since it involves direct expenditure of public funds, this tool is one that should be used sparingly, and only for sites that cannot be protected in any other way. There are special sites that should be protected, regardless of the cost, and this should be used as a final resort to assure their preservation. Therefore, this tool should be used selectively, in areas where either public management is needed, or public access is important for the purpose of the park to be achieved. City fl~ark tEunds - tEee iJn 11ieu of aDedication Money is placed in the general park fund through fees on new development. Large developments will usually be creating their own parks to address their localized needs. Smaller development, and large ones in certain instances provide money in lieu of parkland dedication. Bonds Approved by voter referendum, General Obligation Bonds may be used to finance acquisition, easements, or construction. These bonds are most often used when the proj ect will not generate enough revenue to cover the cost of the improvements. Revenue Bonds are also useful as they can be used for projects that will eventually produce enough income to cover their debt. Regional parks are examples of sites where Revenue Bonds can successfully be employed. City Drainage Funds The City has recently implemented a new surcharge on property to enable compliance with the clean water act, flooding, and other problems associated with runoff.:... The drainage charge is calculated for impervious surfaces on properties. Impervious surfaces represent surfaces that contribute runoff into the storm water system including City drainage funds the basic building structure, garages, roofs, patios, driveways, parking lots, etc. Many of the improvements associated with protection of stream corridors may fall under the auspice of the purpose of the drainage fund program. Open Space bonds funded by Property or Sales Tax Several places around the country have found success in acquiring public funding for important open spaces by going to the ballot box. Austin's Proposition 2 "was a Smart Growth Initiative designed to steer dense development away from environmentally sensitive areas by using Gfity funds to purchase, either in fee or through conservation easements...." (Executive proposal summarylRemarks of Mayor Kirk Watson settlement agreement between Bradley Interests and City of Austin). O(key importance in asking voters to spend additional monies on open space acquisition is to clearly identifY what the public will receive for the money it spends. A balance must be made however, in terms of how much detail is provided. If individual parcels are listed the initiative can be perceived as targeting some individuals over others, and more importantly, can possibly create inverse condemnation problems that may result when the owner's property is suddenly less valuable to developers as a result. Experience has shown the most successful initiatives stress the overall goals of the project, and simultaneously provide both target amounts ofland and rough generalized locations with a fair and equitable distribution. Agreements in Lieu of Annexation The City of Denton has achieved some measure of success in signing a contract with a landowner where he or she will agree to not develop the property to urban levels in exchange for the city passing over the option to annex the property. In cases where conservation, not access is the goal, these agreements may be employed. Land Exchange Public entities occasionally have properties that are of suitable size and location to make them attractive to be traded for private lands desired for open space. Land exchanges are done on the basis of appraised value rather than size. Land trades can be time- consuming and complex but can be beneficial to both the seller (no tax for an equal exchange) and the purchaser (no cash required). Under federal and state tax laws a landowner may exchange one tract of land for another. An advantage of such transaction is that capital gains taxes are deferred. For example, the swapping of privately owned land with conservation value for publicly or private nonprofit owned developable land. Acquisition of Development Rights (Conservation Easement) Transfer of specific interests in land (rights) from a landowner to another party. For example, an easement may specify that all or part of the land be left in a natural state through the transfer of all or limited mineral rights, timber rights, subdivision rights, etc. It may allow restricted or unrestricted public access. The landowner may retain ownership and specified reserved uses, while the easement holder has the right to enforce restrictive conditions included in the easement. Appraised value and, therefore, property taxes and estate taxes, are routinely reduced in proportion to the reduction in land value when an easement is donated to a government agency or private nonprofit organization. Easements must be in perpetuity to qualify for federal and state income tax advantages. Density Transfer (already established In Denton Code) DRAFT 10/2002 Regulatory Protection Density Transfer (already established in Denton Code) One of the most effective regulatory provisions in mitigating reduced land values is a density transfer system. With density transfers, a property owner has the right to the same number of units and allowable uses, but the units are transferred on the same parcel from more sensitive land to less sensitive land. With density transfers, the economic effect of environmental protection may be almost benign - especially in residential developments. The focus of a density transfer system is more on how to design with nature, rather than how much to diminish the overall development intensity. We recommend that density transfers be permitted as a property owner's right and not subject to approval through a discretionary decision-making planning process. No action is needed to implement this section, however, developments that occur in areas that have been identified, as key open space areas should be encouraged to use the density transfer provisions to their fullest extent in order to facilitate the implementation of this plan. Transfer of Development rights One method that has been used to protect open space lands is a Transfer of Development Rights (TDR) system. Several states throughout the nation have TDR programs that are two decades old or older. In a TDR system, the area to be protected is designated as a "sending zone," in which a certain number of units per acre are credited to the sending area. A "receiving zone" also is set up where the development rights can be transferred. By buying the development rights from a farmer, a developer can achieve a higher density in the receiving zone than otherwise would be permitted. The beauty of a TDR system is that the compensation amount is determined privately between the property owners involved - and the result is permanent protection of the farmland. Accompanying this document is an appendix that contains a Transfer of Development Rights ordinance that can be added to Denton's o eve 1 onm ent coo e DRAFT 10/2002 Summary This list of strategies is not exhaustive as other programs may be available that have not been brought forward. Strategies noted may be modified or used in combination. The overriding theme is that no one strategy will be acceptable to all property owners nor provide the right mechanisms for achieving the goals of this plan. A number of strategies are listed as it is recognized that it will take a number of different ones working together to be successful. While certain areas have been targeted as examples for a particular strategy, this is not intended to limit the tools that may be brought to bear to achieve the goals of this plan. Conclusion This plan is intended to further this vision of the plan, and lead to specific action that will lead to a Denton that is as good as, or even better, that the place we five today. One thing seems certain to the people of Denton - if we build a successful economy, an efficient transportation system, and a good education system but neglect open space, we will have failed. The public benefits of open space, in its various forms, may range from aesthetic appreciation to food production and recreational uses. These values contribute to the wealth of the region, boosting its economic, social and natural capital, and contributing to the long-term sustainability of the community. Open space, in all its forms, is not just a land use designation, but also a value in its own right, as well as having added value that is associated with other land uses such as agriculture and outdoor recreation. Open space also benefits public safety, preserves scenic resources, provides a buffer and delineation between developments and serves to protect wildlife and natural habitat. It is these open space lands that serve as the heart of Denton's "quality of life." AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: Economic Development CM: Mike Conduff SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a grant agreement from the Texas Department of Housing and Community Affairs for Emergency Shelter Grant Program and to take all other actions necessary; and providing for an effective date. BACKGROUND The Texas Department of Housing and Community Affairs (TDHCA) awarded Emergency Shelter Grant Programs (ESGP) funds to the City of Denton. The 2005-2006 ESGP award of one hundred fifty six thousand eight hundred and thirty-two dollars ($156,832.00) is a $95,717 or 157% increase over the 2004-2005 ESGP Award of $61,115.00. The 2005-2006 ESGP award will be used to support homeless and homelessness prevention services provided by HOPE, Inc., The Salvation Army, Christian Community Action (CCA), and Denton County Friends of the Family. ESTIMA TED PROJECT SCHEDULE The ESGP award must be expended from September 1, 2005 to August 31,2006. PRIOR ACTIONIREVIEW (Councils. Boards. Commissions) The Denton County Homeless Coalition, the designated lead organization for the local Homeless Continuum of Care, reviewed the Emergency Shelter Grant Program application and award. FISCAL INFORMATION The Emergency Shelter Grant Program requires a 100% match, the match will be provided by HOPE, Inc, The Salvation Army, CCA, and Denton County Friends of the Family. EXHIBITS 1. Ordinance 2. Emergency Shelter Grant Program Contract Respectfully submitted: ~ Linda Ratliff Director of Economic Development Prepared by: ~ /j/cd4 Wendy Nalls Human Services Coordinator s: \Our Documents\Ordinances\05\Emergency Shelter Grant Ordinance. doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE TEXAS DEPARTMENT OF HOUSING AND COMJ\.1UNTY AFFAIRS FOR EMERGENCY SHELTER GRANT PROGRAM AND TO TAKE ALL OTHER ACTIONS NECESSARY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is concerned with the provision of services to residents who are homeless and with providing decent housing, a suitable living environment, and assisting homeless households to achieve self sufficiency; and WHEREAS, the City of Denton, Texas, has a developed and adopted a continuum of care for homeless and potentially homeless households; and WHEREAS, the City of Denton, Texas, wishes to accept a grant award of one hundred fifty six thousand eight hundred and thirty two dollars ($156,832.00) through the Emergency Shelter Grant Program, as authorized by the Stewart B. McKinney Homeless Assistance Act of 1987 as amended (42 U.S.C. Sec. 11371 et seq.), and as administered through the United States Department of Housing and Urban Development; and WHEREAS, the Texas Legislature has designated the Texas Department of Housing and Community Affairs as the administering agency for the Emergency Shelter Grant Program pursuant to Sec. 2306.094, Texas Government Code; and WHEREAS, the City of Denton, Texas, intends to sub-contract with a local social service agency to provide services through the emergency shelter grant program; and WHEREAS, the Texas Department of Housing and Community Affairs requires the appropriate certifications and the City Council deems it in the public interest to authorize the City Manager to execute a grant agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and are true and correct. SECTION 2. The City Council of the City of Denton, Texas, authorizes the City Manager to sign and submit to the Texas Department of Housing and Community Affairs and all appropriate officials thereof, a grant agreement, together with all necessary certifications, and other documents as well as appropriate resources for entitlement of funds under the Stewart B. McKinney Homeless Assistance Act of 1987, as amended and Emergency Shelter Grant Program pursuant to Sec. 2306.094 of the Texas Government Code., and all other applicable laws, as necessary to obtain a grant under the Emergency Shelter Grant Program to provide S:\Our DocumeW.1OrdinaDce~S\Emerg~cy Shelter-Grant OnIioancc.doc services to homeless residents of Denton. The City Manager is authorized to take all other actions necessary to execute an agreement and administer this grant. SECTION 3. The Community Development Administrator is authorized, under the supervision of the City Manager, to handle all fiscal and administrative matters relating to the administration of the Emergency Shelter Grant Program, if it is funded and all other matters connected therewith. SECTION 4. The City Secretary is hereby authorized to furnish true, complete, and correct copies ofthis ordinance to all interested parties. . SECTION 5. 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. S , CI ATTORNEY BY: Page 2 of2 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO. 425117 FOR THE EMERGENCY SHELTER GRANTS PROGRAM CFDA NO. 14.231 SECTION 1. THE PARTIES This agreement is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (herein the "Department") and CITY OF DENTON (herein the "State Subrecipient" or "Subrecipient"). SECTION 2. GRANT PERIOD The period for performance of this agreement, unless earlier terminated, is September 1, 2005 through August 31,2006 (herein the "Grant Period"). SECTION 3. STATE SUB RECIPIENT PERFORMANCE State Subrecipient shall conduct, in a satisfactory manner as determined by Department, an Emergency Shelter Grants Program pursuant to the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.c. Sec. 11371 et. seq.) (herein the "Act"). Subrecipient shall perform all activities in accordance with the terms of the Budget (herein "Exhibit A"); the Match (herein "Exhibit B"); the Applicable Laws and Regulations (herein "Exhibit C"); the assurances, certifications, and other statements made by Subrecipient in its Emergency Shelter Grants Program (herein "ESGP") application, and with all other terms of this grant agreement. SECTION 4. DEPARTMENT OBLIGATIONS A. In consideration of Subrecipient's full and satisfactory performance of this agreement, Department shall reimburse the actual allowable costs incurred by Subrecipient in an amount up to: $156,832.00 B. Department's obligations under this agreement are contingent upon the actual receipt of adequate ESGP funds from the U.S. Department of Housing and Urban Development (herein "HUD"). If sufficient funds are not available to make payments under this grant agreement, Department shall notify Subrecipient in writing within a reasonable time after such fact is determined. Department shall then terminate this agreement and will not be liable for the failure to make any payment to Subrecipient under this agreement. 1 of 14 C. Department shall not be liable to Subrecipient for any costs which: (1) have been reimbursed to Subrecipient or are subject to reimbursement to Subrecipient by any source other than Department; (2) are not allowable costs, as set forth in the Act and Section 6(B) of this agreement; (3) are not strictly in accordance with the terms ofthisagreement, including the exhibits; (4) have not been reported to Department within sixty (60) days following termination of this agreement; or (5) are not incurred during the Grant Period, exclusive of pre-award travel and/or per diem expenses to attend the ESGP Implementation Workshop. D. Subrecipient shall refund to Department any sum of money which has been paid to Subrecipient by Department, which Department determines has resulted in an overpayment, or which Department determines has not been spent strictly in accordance with the terms of this agreement. Subrecipient shall make such refund within fifteen (15) days after the Department's request. SECTION 5. METHOD OF PAYMENT / CASH BALANCES A. Each month Subrecipient may request an advance payment by submitting to Department a properly completed Monthly Funding/Financial/Performance Report (MFFPR) that may include a request for advance funds (Projected Expenses) in an amount not to exceed Subrecipient's actual cash needs for the month for which such advance is sought. B. Subrecipient's requests for advance payments shall be limited to the mmlmum amounts needed for the effective performance of this agreement, and shall be timed as closely as possible with Subrecipient's actual immediate cash requirements. Subrecipient shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Subrecipient. C. Department may use a cost reimbursement method of payment if (1) in excess of need; (2) Department identifies any deficiency in the cash controls or financial management system used by Subrecipient; or (3) Subrecipient fails to comply with any of the reporting requirements of Section 9. D. All funds paid to Subrecipient under this contract are paid in trust for the exclusive benefit of the eligible Subrecipients of ESGP services and for the payment of allowable expenditures. 2 of 14 SECTION 6. ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES A. Except as specifically modified by law or regulation, in performing this agreement, Subrecipient shall comply with the administrative requirements set forth in OMB Circular No. A-110 (nonprofit organizations) or the regulations codified at 24 c.F.R. Part 85 (units of state or local government), whichever is applicable to Subrecipient. B. Except as specifically modified by law or regulation, in performing this agreement, Subrecipient shall comply with the cost principles set forth in OMB Circular No. A- 122 (nonprofit organizations) or OMB Circular No. A-87 (units of state or local government), whichever is applicable to Subrecipient. C. Notwithstanding any other provision of this grant agreement, Department shall only be liable to Subrecipient for costs incurred or performances rendered for activities specified in 24 c.F.R. Sec.576.21(a). Department shall not be liable to Subrecipient for the costs of any other activities, including but not limited to: (1) acquisition of an emergency shelter for the homeless; (2) renting commercial transient accommodations for the homeless (such as hotel or motel rooms) unless the conditions in Section 22(J) of this agreement have been met; (3) renovating, rehabilitating, or converting buildings owned by primarily religious organizations or entities except as specifically authorized by 24 C.F.R. Sec. 576.23(b ). D. Use of Alcoholic Beverages. None of the funds provided under this contract shall be used for the payment of salaries to any employee who uses alcoholic beverages while on active duty. No funds provided under this contract for travel expenses shall be used for the purchase of alcoholic beverages. SECTION 7. MATCH REQUIREMENT A. Subrecipient shall provide an amount of funds equal to the amount of funds provided by Department under this agreement (herein "Subrecipient's Match"). Subrecipient's Match must be provided during the Grant Period from sources other than ESGP funds. Funds used to match a previous ESGP award may not be used to match the award made under this agreement. Subrecipient's Match may include resources provided by any sub-Subrecipient to which Subrecipient provides funds under this agreement. B. Amounts may be counted towards Subrecipient's Match only if such amounts are costs or resources of a type specified in Exhibit B, Match and only if such amounts are computed in accordance with this Section. In calculating the amount of 3 of 14 Subrecipient's Match, Subrecipient may include, but is not limited to, cash donations; the value of any donated material or building; the value of any lease on a building; any salary paid Subrecipient's staff (or that of its sub-Subrecipients) in carrying out the activities required under this agreement; and the time and services contributed by volunteers to carry out such activities, determined at the rate of Five Dollars ($5.00) per hour. Subrecipient shall determine the value of any donated material or building or any lease, using any method reasonably calculated to establish a fair market value. SECTION 8. RETENTION AND ACCESSIBILITY OF RECORDS A. Subrecipient shall maintain fiscal records and supporting documentation for all expenditures of funds made under this agreement in a manner that conforms to OMB Circular No. A-87 or A-122 and this agreement. Subrecipient shall comply with the retention and custodial requirements for records as set forth in OMB Circular No. A- 110 or 24 C.F.R. Part 85. B. Subrecipient shall give HUD, the Comptroller General of the United States, the Auditor of the State of Texas, and any Department authorized representative, access to and the right to reproduce all records belonging to or in use by Subrecipient pertaining to this grant agreement. Such access shall continue as long as Subrecipient retains the records. Subrecipient shall maintain such records in an accessible location. C. Subrecipient shall ensure that any sub subcontractors receiving funds provided under this grant shall comply with the record retention and custodial requirements specified in this Section. SECTION 9. REPORTING REQUIREMENTS A. Subrecipient shall submit to Department such reports on the performance of this grant as may be required by Department including but not limited to the reports specified in this Section. B. Subrecipient shall electronically submit a Monthly Funding/Financial/Performance Report (MFFPR) to the Department on or before the twentieth (20th) day of each month following the reported month in the Grant Period, beginning no later than October 20,2005, regardless of whether Subrecipient makes a fund request. C. Subrecipient shall submit a final MFFPR to the Department within sixty (60) days after the end of the Grant Period. The failure of Subrecipient to provide a full accounting of all funds expended under this agreement within sixty (60) days shall be sufficient reason for Department to deny or terminate any future agreements with Subrecipient. If this contract provides assistance for renovation, rehabilitation, or 4 of 14 conversion, in addition to the electronic final report, Subrecipient shall submit under separate cover photographs ofthe finished construction work. D. Subrecipient shall submit to Department within twenty (20 days) days after the termination of this contract an IDIS Annual Performance Report prepared according to ESGP Policy Issuance instructions. E. Subrecipient shall submit to Department no later than sixty (60) days after the termination of this contract a cumulative inventory report of all equipment having a unit acquisition cost of$500 or more, acquired in whole or in part with funds received under this or previous ESGP contracts. Upon the termination of this contract, Department may transfer title to any such equipment having a unit acquisition cost of $1000 or more to itself or to any other entity receiving ESGP funds from Department. F. If Subrecipient fails to submit, in a timely and satisfactory manner, any audit, report or response required by this agreement including responses to monitoring reports, Department may withhold payments otherwise due to Subrecipient hereunder. If Department withholds such payments, it shall notify Subrecipient in writing of its decision and the reasons therefore. Department may withhold payments until such time as the delinquent obligations for which funds are withheld are fulfilled by Subrecipient. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this agreement. Subrecipient receives ESGP funds from Department over two or more Grant Periods, funds may be withheld or this agreement suspended or terminated for Subrecipient's failure to submit a report or response (including a report of audit) past due under a prior grant agreement. SECTION 10. MONITORING AND TECHNICAL ASSISTANCE Department or its designee may conduct periodic on-site monitoring and evaluation of the efficiency, economy, and effectiveness of Subrecipient's performance of this agreement. Department will advise Subrecipient in writing of any deficiencies noted during such monitoring. Department will provide technical assistance to Subrecipient and will require or suggest changes in Subrecipient's program implementation, accounting, personnel, procurement, or management procedures in order to correct any deficiencies noted. Department may conduct follow-up visits to review and assess the efforts Subrecipient has made to correct previously noted deficiencies. Department may place Subrecipient on a reimbursement method of payment, terminate this contract, or invoke other remedies in the event monitoring or other reliable sources reveal material deficiencies in Subrecipient's performance or if Subrecipient fails to correct any deficiency within a reasonable period oftime. 5 of 14 SECTION 11. INDEPENDENT CONTRACTOR Department is contracting with Subrecipient as an independent contractor. To the extent allowed by law, Subrecipient agrees to hold Department harmless and to indemnify Department from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occurring or in any way incident to, arising out of, or in connection with Subrecipient's performance of this contract. SECTION 12. PROCUREMENT Subrecipient shall develop and implement procurement procedures that conform to the administrative requirements referenced in Section 6 and with any procurement guidelines issued by Department. If Subrecipient is a unit of local government, it shall also comply with all applicable state and local laws relating to procurement. Subrecipient shall not procure supplies, equipment, materials, or services except in accordance with such procurement procedures. SECTION 13. CONFLICT OF INTEREST I NEPOTISM A. Subrecipient shall comply with the conflict of interest provisions at 24 c.F.R. Sec. 576.57(d). B. Subrecipient represents that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict with the performance of this agreement and that no person having such interest shall be employed by Subrecipient or serve as a member of its governing body. C. Subrecipient shall ensure that no officer, employee, or member of the governing body of Subrecipient shall vote for or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of Subrecipient's governing body or to any officer or employee who would directly supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. SECTION 14. LEGAL AUTHORITY A. Subrecipient represents that it possesses the legal authority to enter into this agreement and to perform the services Subrecipient as obligated itself to perform hereunder. 6 of 14 B. The person signing this contract on behalf of Subrecipient hereby warrants that he/she has been duly authorized by Subrecipient's governing board to execute this agreement on behalf of Subrecipient and to bind Subrecipient to the terms herein set forth. C. Department shall have the right to terminate this contract if there is a dispute as to the legal authority of either Subrecipient or the person signing this contract to enter into this contract or to render performances hereunder. Subrecipient is liable to Department for any money it has received from Department for performance of the provisions of this contract, if Department has terminated this contract for reasons enumerated in this Section 14. SECTION 15. LITIGATION AND CLAIMS Subrecipient shall give Department immediate notice in writing of any action or claim, including any proceeding before an administrative agency, filed against Subrecipient and arising out of the performance of this agreement. Subrecipient shall promptly furnish Department with copies of all pertinent papers received by Subrecipient with respect to such action or claim. SECTION 16. SECTARIAN ACTIVITY The performance of this agreement shall not involve, and no portion ofthe funds received by Subrecipient hereunder shall be used in support of, any sectarian or religious activity. SECTION 17. CHANGES AND AMENDMENTS A. Any change in the terms of this agreement, which is required by a change in state or federal law or regulation is automatically incorporated herein and is effective on the date designated by such law or regulation. B. Except as otherwise expressly provided in this agreement, any change in the terms of this agreement shall be reduced to writing and agreed upon by both parties. Any change to the amount of this contract as shown in Section 4 A shall be by an amendment hereto in writing and signed by both parties. Any change to the amount specified per activity category shall be requested in writing by the contractor and authorized by a letter signed by the director of the Community Affairs Division. Pursuant to Department policy, no Subrecipient-initiated amendments will be approved or processed during the first 90 days or the last 30 days ofthe Grant Period. 7 of 14 SECTION 18. DEPARTMENT ISSUANCES Performance of this grant agreement must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Department by Subrecipient, and the assurances and certifications made to HUD by the State of Texas with regard to the operation of the Texas ESGP. In order to ensure the legal and effective performance of this contract, Department may issue policy directives, which serve to establish, interpret, or clarify the requirements of this agreement. Such directives shall be promulgated by Department in the form of ESGP Issuances and shall be binding upon Subrecipient as if written herein. ESGP Issuances shall not alter the terms of this agreement so as to release Department of any obligation specified in Section 4 to reimburse costs incurred by Subrecipient prior to the effective date of said Issuance. SECTION 19. TERMINATION AND SUSPENSION A. Department may terminate this agreement, in whole or in part, at any time Department determines that Subrecipient has failed to comply with any term of this agreement. Department shall notify Subrecipient of such determination in writing prior to the thirtieth (30th) day preceding the date of termination to provide the reasons for such termination, the effective date of such termination, and in the case of partial termination, the portion ofthe agreement to be terminated. B. Nothing in this Section shall be construed to limit Department's right to withhold payment or immediately suspend Subrecipient's performance of this agreement if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Subrecipient's performance. Suspension shall be a temporary measure pending either corrective action by Subrecipient or a decision by Department to terminate this agreement. C. Upon receipt of notice of suspension or termination, Subrecipient shall cancel, withdraw, or otherwise terminate any outstanding orders or subcontracts related to the performance of this agreement and shall cease to incur costs hereunder. Department shall not be liable to Subrecipient for costs incurred after termination of this agreement. D. Notwithstanding any exercise by Department of its right of suspension or of early termination, Subrecipient shall not be relieved of any liability to Department for damages due to Department by virtue of any breach of this agreement. Department may withhold payments to Subrecipient until such time as the exact amount of damages due to Department by Subrecipient is agreed upon or is otherwise determined and paid. 8 of 14 SECTION 20. AUDIT A. For any fiscal year included within the Grant Period during which the Subrecipient expended $500,000 or more in total federal financial assistance, Subrecipient shall arrange for the performance of an annual audit of the funds received and performances rendered under this grant agreement. The audit shall be made in accordance with the Single Audit Act Amendments of 1996, 31 U.S.c. ch. 75; and OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations". The term "federal financial assistance" includes awards of federal financial assistance received directly from federal agencies, or indirectly through units of state and local government. B. Subrecipient shall submit two (2) copies of the report of such audit to Department within thirty (30) days after the completion of the audit, but no later than nine (9) months after the end of the audit period. Subrecipient shall insure that the audit report is made available for public inspection within thirty (30) days after completion of the audit. Audits performed under this Section are subject to review and resolution by Department or its authorized representative. C. For each fiscal year ending within or immediately after the Grant Period, Subrecipient must submit an "Audit Certification Form" (available from the Department) within sixty (60) days after the Subrecipients fiscal year end. D. Department reserves the right to conduct additional audits of the funds received and performances rendered under this grant agreement. Subrecipient agrees to permit Department or its authorized representative to audit Subrecipient's records and to obtain any documents, materials, or information necessary to facilitate such audit. E. Subrecipient shall be liable to Department for any costs disallowed pursuant to audit(s) of funds received under this agreement. Subrecipient shall reimburse such disallowed costs with funds that are not provided under this contract. SECTION 21. TRAVEL Allowable travel costs under this contract shall be determined in accordance with OMB Circulars A-122 or A-87, as applicable, any Department Issuance on travel, and with Contractor's written travel policy. Contractor's written travel policy shall delineate the rates which Contractor shall use in computing the travel and per diem expenses of its board members and employees. Prior to incurring any costs for travel, contractor must provide Department with a copy of its travel policy and evidence that such policy has been approved by Contractor's governing body. If Contractor has no established written travel policy, the travel regulations applicable to Department employees shall apply. 9 of 14 SECTION 22. SPECIAL CONDITIONS A. Department shall not release any funds under this agreement until Department has determined that Subrecipient's fiscal control and fund accounting procedures are adequate to assure the proper disbursal of and accounting for such funds. B. Department shall not release any funds under this agreement until Department has received a properly completed Depository/Authorized Signatory Form (Department Form) from Subrecipient. C. Subrecipient shall have obligated (as such term is defined in 24 C.F.R. Sec. 576.3) all funds provided under this agreement on or before January 1,2006. Department may recapture any funds not so obligated. D. Subrecipient shall ensure that any building rehabilitated with funds provided under this agreement is maintained as a shelter for the homeless for not less than a three- year period, or for not less than a ten-year period if such funds are used for major rehabilitation or conversion of the building. The applicable period shall be calculated in accordance with 24 C.F.R. Sec.576.53(b). E. If Subrecipient uses funds received under this agreement to provide essential services, homeless prevention, or maintenance and operating costs, the activities must be carried out until all of the funds made available under this agreement for such activities are expended or for the Grant Period, whichever is shorter. Subrecipient may use one or more sites or structures to carry out the activities but it must serve the same general population. The "same general population" means the types of homeless persons originally served with the funds or persons in the same geographical area. F. Subrecipient shall make known that use of the facilities and services funded under this agreement are available to all on a nondiscriminatory basis. Subrecipient also must adopt and implement procedures designed to make available to interested persons information concerning the existence and location of services and facilities that are accessible to persons with a disability. G. Subrecipient shall administer, in good faith, a policy designed to ensure that its homeless facility is free from the illegal use, possession, or distribution of drugs or alcohol. H. Subrecipient shall not expend ESGP funds for any activities that would result in the displacement of persons or businesses. I. Subrecipient shall, to the maximum extent practicable, involve, through employment, volunteer services, or otherwise, homeless individuals and families in constructing, renovation, maintaining, and operating facilities assisted under this agreement, in 10 ofl4 providing services assisted under this agreement, and m providing servIces for occupants of facilities assisted under this agreement. 1. If Subrecipient intends to provide emergency shelter for homeless persons in hotels or motels, or other commercial facilities providing transient housing, Subrecipient must provide the Department with a certification that: (1) leases negotiated between Subrecipient and providers of such housing provide or will provide that the living space will be rented at substantially less that the daily room rate otherwise charged by the facility; and (2) the Subrecipient has considered other facilities as emergency shelter, and has determined that use of the facilities provides the most cost-effective means of providing emergency shelter in its service area. K. Subrecipient shall develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted under this agreement, and that the address or location of any family violence shelter project assisted will, except with written authorization of the person or persons responsible for the operation of such shelter, not be made public. L. Subrecipient shall ensure that any building for which ESGP amounts are used for renovation, conversion, or major rehabilitation must meet local government safety and sanitation standards. M. None of the funds provided under this agreement may be used in connection with any dwelling unit unless the unit is protected by a hard-wired or battery-operated smoke detector installed in accordance with National Fire Protection Association Standard 74. N. Subrecipient shall only subcontract for budget line items under this contract which are not specified in Exhibit A after Subrecipient has submitted information concerning each such proposed subcontract to Department and has obtained Department's prior written approval of Subrecipient's intent to enter into such proposed contract. Subrecipient, in subcontracting for any performances described in this contract, expressly understands that in entering into such subcontracts, Department is in no way liable to Subrecipient's subcontractor(s). In no event shall any provision of this paragraph, specifically the requirement that Subrecipient obtain Department's prior written approval of a subcontract, be construed as relieving Subrecipient of the responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all of the terms of this contract, as if such performances were rendered by Subrecipient. Department's approval under this paragraph does not constitute adoption, ratification, or acceptance of Subrecipient's or subcontractor's performance hereunder and Department maintains the right to insist upon Subrecipient's full compliance with the terms ofthis contract. 110fl4 SECTION 23. POLITICAL ACTIVITY AND LOBBYING A. None of the funds provided under this contract shall be used for influencing the outcome of any election, or the passage or defeat f any legislative measure. This prohibition shall not be construed to prevent any official or employee of Contractor from furnishing to any member of its governing body upon request, or to any other local or state official or employee or to any citizen information in the hands of the employee or official not considered under law to be confidential information. Any action taken against an employee or official for supplying such information shall subject the person initiating the action to immediate dismissal from employment. B. No funds provided under this contract may be used directly or indirectly to hire employees or in any other way fund or support candidates for the legislative, executive, or judicial branches of government of Contractor, the State of Texas, or the government ofthe United States. C. None of the funds provided under this contract shall be expended in payment of the salary for full-time employment of any employee who is also the paid lobbyist of any individual, firm, association, or corporation. None of the funds provided by this contract shall be expended in payment of the partial salary of a part-time employee who is required to register as a lobbyist by virtue of the employee's activities for compensation by or on behalf of industry, a profession or association related to operation of Contractor. A part-time employee may serve as a lobbyist on behalf of industry, a profession, or association so long as such entity is not related to Contractor. Except as authorized by law, no contract funds shall be expended in payment of membership dues to an organization on behalf of Contractor or an employee of Contractor if the organization pays all or part of the salary of a person required to register under Chapter 305, Government Code. D. None of the funds provided under this contract shall be paid to any official or employee who violates any of the provisions of this section. E. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Subrecipient shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 120fl4 SECTION 24. PREVENTION OF FRAUD AND ABUSE A. Subrecipient shall establish, maintain, and utilize internal systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in the performance of this agreement and to provide for the proper and effective management of all program and fiscal activities funded by this agreement. Subrecipient's internal control systems and all transactions and other significant events are to be clearly documented and the documentation shall be readily available for monitoring by Department. B. Subrecipient shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the performance of this agreement. Subrecipient shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. C. Subrecipient may not discriminate against any employee or other person who reports a violation ofthe terms of this agreement or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 25. MAINTENANCE OF EFFORT Funds provided to Subrecipient under this agreement may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Subrecipient had this agreement never been executed. SECTION 26. NO WAIVER No right or remedy given to Department by this contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 27. SEVERABILITY If any portion of this agreement is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. 13 of 14 SECTION 28. PRIOR ORAL AND WRITTEN AGREEMENTS All oral and written agreements between the parties to this contract relating to the subject matter of this agreement that were made prior to the execution of this agreement have been reduced to writing and are contained herein. SECTION 29. EXHIBITS The exhibits identified below are hereby made a part ofthis agreement: 1. Exhibit A, Budget 2. Exhibit B, Match 3. Exhibit C, Applicable Laws and Regulations SIGNED this day of ,2005. CITY OF DENTON TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: Michael A. Conduff City Manager By: Edwina P. Carrington Executive Director This agreement is not effective unless signed by the Executive Director of Departmen or her authorized designee 14 ofl4 EXHIBIT A Contractor: CITY OF DENTON Contract: 425117 Contract Period: 09/01/2005 - 08/31/2006 Activity Category Description of Activities State Administration (City and County Only) Operation Administration Christian Community Action (CCA) $8,000 Director of Family Services HOPE, Inc. $2,000 TAP Case Manager A REHABILITATION B ESSENTIAL SERVICES Salaries 30,000 .00 Salvation Army - Denton Corp Transitional Shelter Coordinator Other 8,000 .00 HOPE, Inc. Childcare C MAINTENANCE, OPERATIONS, AND FURNISHINGS Maintenance (contractual agreements only) .00 Operation (excluding staff but including) 32,400.00 City of Denton Pre-award Travel Expenses 900.00 Denton County Friends of the Family Safe Shelter Repairs (non-deferred) 5,496.00 Telephone 6,000.00 Utilities 10,004.00 Salvation Army - Denton Emergency Shelter Food 7,000.00 HOPE, Inc. Other ( specify) Denton HMIS 3,000.00 15 of 4 Total Funds 6,032.00 10,000.00 .00 38,000.00 32,400.00 Furnishings (list item(s)) D HOMELESSNESS PREVENTION Christian Community Action Rent 13,500.00 Utilities 6,000.00 HOPE, Inc. Rent 34,400 Utility Security Deposits 3,000.00 Other - Security Deposits 3,500.00 Salvation Army - Denton Corp Rent 3,000.00 Utilities 2,000.00 Salvation Army - Lewisville Rent 3,000.00 Utilities 2,000.00 TOTAL 16 of 4 .00 70,400.00 156,832.00 EXHIBIT B Contractor: CITY OF DENTON Contract: 425117 Contract Period: 09/01/2005 - 08/31/2006 Source DONA nONS Materials .00 HOPE, Inc. $1,000 Clothing, toiletries, household supplies, gifts for children from local church groups Building Funds HOPE, Inc. Emergency Food and Shelter Program and CDBG awards Salvation Army Denton Donations LEASE or RENT Denton County Friends of the Family Fair market rent value of safe shelter $3000 FMR x 12 mos = $36,000 HOPE, Inc. Rent paid from General Operating Funds and United Way Funds $3,360 SALARIES Christian Community Action $30,488 3 Caseworkers $101,628 x 30% HOPE, Inc. $27,560 TAP Caseworker $19,860 x 90% $17,860 Intake Worker $19,400 x 50% = $9,700 Salvation Army Lewisville $7,249 Administrative Director $30,204 x 24% Funds $3,360 17 of 4 Dollar Value 1000 .00 62,987.00 39,360.00 65,297.00 VOLUNTEERS (@ $5.00/hour) OTHER TOTAL .00 1000.00 168,644.00 18 of 4 EXHIBIT C APPLICABLE LAWS AND REGULATIONS Grantee shall comply with the Act specified in Section 3 of this agreement; the OMB Circulars and regulations specified in Section 6 of the grant agreement; and with all other federal, state, and local laws and regulations applicable to the activities and performances rendered by Grantee under this agreement including but not limited to the laws, and the regulations promulgated thereunder specified in this Exhibit C. I. NONDISCRIMINATION AND EQUAL OPPORTUNITY Title VI of the Civil Rights Act of 1964, (42 U.S.c. Sec. 2000d et seq.); 24 c.P.R. Part 1, "Nondiscrimination in Pederally Assisted Programs of the Department of Housing and Urban Development - Effectuation of Title VI ofthe Civil Rights Act of 1964"; Title VIII of the Civil Rights Act of 1968, "The Pair Housing Act of 1968" (42 U.S.c. Sec. 3601 et seq.) and implementing regulations; Executive Order 11063, as amended by Executive Order 12249, and 24 c.F.R. Part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063". The failure or refusal of the Contractor to comply with the requirements of Executive Order 11063 of 24 c.F.R. Part 107 shall be a proper basis for the imposition of sanctions specified in 24 C.PR Sec. 107.60.; The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.c. Sec. 6101 et seq.) and implementing regulations at 24 c.F.R. Part 146; The prohibitions against discrimination against otherwise qualified individuals with disabilities under Section 504 of the Rehabilitation Act of 1973 (29 U.S.c. Sec. 794) and implementing regulations at 24 c.F.R. Part 8. Por purposes of the Emergency Shelter Grants Program, the term "dwelling units" in 24 c.P.R. Part 8 shall include sleeping accommodations; The affirmative action requirements of Executive Order 11246 and the regulations issued under the Order at 41 C.PR Chapter 60; and Executive Orders 11625, 12432, and 12138. Contractor shall make efforts to encourage the use of minority and women's business enterprise in connection with activities funded under this contract. II. EMPLOYMENT OPPORTUNITIES Section 3 ofthe Housing and Urban Development Act of 1968 (12 U.S.c. Sec. l70lu). 1 of 4 III. UNIFORM FEDERAL ACCESSIBILITY STANDARDS For major rehabilitation or conversion, the Uniform Federal Accessibility Standards at 24 c.F.R. Part 40, Appendix A. IV. LEAD-BASED PAINT The requirements, as applicable, of the Lead-Based Paint Poisoning Prevention Act (42 U.S.c. Sec. 4821-4846) and implementing regulations at 24 C.F.R. Part 35. In addition, Contractor must also meet the following requirements relating to inspection and abatement of defective lead-based paint surfaces: (1) Treatment of defective paint surfaces must be performed before final inspection and approval of the renovation, rehabilitation, or conversion activity under 24 c.F.R. Part 576; and (2) Appropriate action must be taken to protect shelter occupants from the hazards associated with lead-based paint abatement procedures. V. USE OF DEBARRED, SUSPENDED, OR INELIGIBLE CONTRACTORS The provisions of 24 C.F.R. Part 24 relating to the employment engagement of services, awarding of contracts, or funding of any Contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status. I. FLOOD INSURANCE No site proposed on which renovation, major rehabilitation, or conversion of a building is to be assisted under 24 c.F.R. Part 576, other than by grant amounts allocated to States under Sec. 576.43, may be located in an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards unless: (1) The community in which the area is situated is participating in the National Flood Insurance Program and the regulations thereunder (44 C.F.R. Parts 59 through 79) or (ii) Less than a year has passed since FEMA notification regarding such hazards; and (2) Contractor will ensure that flood insurance on the structure is obtained in compliance with section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.c. Sec. 4001 et seq.). 20f4 VII. COASTAL BARRIERS In accordance with the Coastal Barrier Resources Act, 16 U.S.c. 3501, no financial assistance under the Act may be made available within the Coastal Barrier Resources System. Contractor shall comply, where applicable, with the Coastal Zone Management Act of 1972 (16 U.S.c. Sec. 1451 et seq.) as amended, particularly section 307(c) and (d) (16 U.S.c. Sec. 1456(c) and (d) ). VIII. ENVIRONMENTAL STANDARDS If Grantee is a unit of local government, it shall assume the environmental responsibilities specified in section 104(g)(1) of the Housing and Community Development Act of 1974 and 24 C.F.R. Part 58. Grantee shall assist Department and HUD in their compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.c. Sec. 470 et seq.); Executive Order 11593; and the Archaeological and Historical Preservation Act of 1966 (16 U.S.C Sec. 489a-l et seq.) by: (a) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects by activities funded under this contract and notifying Department and HUD of the existence of any such properties, and (b) complying with all requirements established by HUD to avoid or mitigate adverse effects upon such properties. Grantee shall ensure, pursuant to Executive Order 11783, that the facilities under its ownership, lease, or supervisions which shall be utilized in the accomplishment of this grant agreement are not listed on the Environmental Protection Agency (EPA) list of violating facilities and that it shall notify Department and HUD of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in carrying out this agreement is under consideration for listing by the EP A. Grantee shall comply with the provisions of the National Environment Policy Act of 1969 (P.L. 91-190) and Executive Order 11514, as amended by Executive Order 11991, which promote efforts to prevent or eliminate damage to the environment and biosphere and require an Environmental Impact Statement when plans and programs may affect the quality of the by Executive Order 11991, which promote efforts to prevent or eliminate damage to the environment and biosphere and require an Environmental Impact Statement when plans and programs may affect the quality of the environment. To the extent applicable, Grantee shall comply with all of the requirements of Section 114 of the Clean Air Act, as amended (42 U.S.c. Sec. 1857 et seq.), and Section 308 of the Federal Water Pollution Control Act (33 U.S.c. Sec. 1251 et seq.), respectively, relating to inspection, monitoring, entry, reports, and information, as well as other requirements 30f4 specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder. Grantee shall comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards, and Executive Order 11288, relating to prevention, control, and abatement of water pollution. Grantee shall assist Department and HUD in their compliance with Executive Order 11988, Flood Plain Management, which requires avoidance, to the extent possible, of the long and short term impacts associated with the occupancy and modification of floodplains and avoidance of the direct of indirect support of floodplain development whenever there is a practicable alternative. 40f4 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: City Manager's Office CM: Mike Conduff, City Manager SUBJECT Consider appointing a voting delegate and an alternate voting delegate to the National League of Cities Annual Congress of Cities. BACKGROUND The National League of Cities Annual Business Meeting will be held on Saturday, December 10, 2005 at the Congress of Cities in Charlotte, North Carolina. The City of Denton is entitled to cast two votes at the Annual Business Meeting and the delegate(s) must be present to vote. Consideration of the voting delegate and alternate voting delegate should include whether the individual is able to remain a day longer at the conference to participate in the business meeting. Respectfully submitted: Jane Richardson Assistant City Secretary AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Finance ACM: Kathy DuBose SUBJECT Consider approval of a Resolution appointing members to the Board of Directors of the North Texas Higher Education Authority; and declaring an effective date. BACKGROUND The North Texas Higher Education Authority, Inc. (NTHEA) was established as a non-profit corporation for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans. The cities of Arlington and Denton exercise the powers enumerated under Section 53.47 of the Texas Education Code and the directors of the Authority are appointed by the cities. Under Section 53.47 the Authority may issue revenue bonds or borrow money to provide funds for the purchase of student loans guaranteed under provisions of the Higher Education Act of 1965, as amended. The Authority issued its first revenue bonds for such purpose in 1979. PRIOR ACTIONIREVIEW At its August 16, 2005 meeting NTHEA took action to nominate individuals to Places 6, and 9 on its board for the term October 1, 2005 through September 30, 2007. The incumbents, Dr. Lindsay Keffer, Place 2, and Mr. Jim Brock, Place 9, have expressed a willingness to serve another term. Therefore, the names of Dr. Keffer, and Mr. Jim Brock are respectfully submitted for the Council's consideration for reappointment. Mr. Jay Anderson, who served in Place 8 on the board, has submitted his resignation. NTHEA submits the name of Mr. Jerry Falbo to serve in this place and respectfully asks the City Council to approve the appointment ofMr. Falbo to the board. Mr. Falbo's resume is attached. FISCAL INFORMATION There is no fiscal impact to the City of Denton. EXHIBITS Letter from NTHEA Jerry Falbo Resume Respectfully submitted: Kathy DuBose Assistant City Manager SEP-07-05 WED 03:41 PM HESC FAX NO. 817 792 7879 p, 03/03 North Texas Higher Education Authority, Inc. Higher Education Servicing Corporation September 7, 2005 Honorable Euline Brock Denton City Council City of Denton 215 East McKinney Denton, Texas 76201 Re: North Texas Higher Education Authority, Inc. (NTHEA) Appointment for Places 6, 8 and 9 Dear Mayor Brock: At its August 16, 2005 meeting, the NOlih Texas Higher Education Authority Board took action to nominate individuals to Places 6 and 9 on its board for the term October 1, 2005 through September 30, 2007. The incumbents Dr. Lindsay Keffer, Place 6 and Mr, Jim Brock, Place 9 have expressed a willingness to serve another term. Therefore, the names of Dr. Keffer and Mr. Brock are submitted for the City Council's consideration for re-appointment. Mr. Jay Anderson, who served in Place 8 011 the board, has submitted his resignation, NTHEA submits the name of Mr. Jerry Falbo to serve in this place and respectfully asks the City Council to approve the appointment of Mr. Falbo to the North Texas Higher Education Authority, Inc, board. I will very much appreciate your notifying me of the action taken by the City Council on the nominees. Please extend our contiIllled thanks to the individual Council members for their support of the Authority and its activities. Sincerely, 'i~4~ Kathryn Bryan Executive Director 1250 E. Copeland Rd., Suite 200 · Arlington, Texas 76011-4921 . (817) 265-915H · www.nthca.com JERRY FALBO EDUCATION University of North Texas, Denton, Texas, Master of Business Administration, 1977 Bachelor of Business Administration, 1972 Dallas Theological Seminary, Dallas, Texas Master of Arts in Biblical Studies, 2005 EMPLOYMENT EXPERIENCE 2/98 - Present Denton Bible Church Church Administrator 01/69 - 01/98 First State Bank of Denton Executive Vice President in Commercial Lending, but served in most every position over a 29-year career. PROFESSIONAL ASSOCIATIONS American Institute of Banking, Denton County Chapter, Past President, Director, Instructor for over 15 years Bank Administration Institute, Dallas Chapter, Past President, Secretary, Director; Implemented the Remote site Seminar Program COMMUNITY INVOLVEMENT Or anizations Texas Bank Denton Re ional Medical Center United Way of Denton County Bo Scouts Ann's Haven Hos ice Denton Board of Realtors Salvation Army, Denton County Cha ter Position Held Advisory Director May 2000 - Present Director for 13 ears Lifetime Member of Board of Directors Held all Chairs including Past President, Campaign Chair, and Treasurer. Volunteer for over 25 years Trustee, 1994-1997 Volunteer Past President, Treasurer, Director Chairman 1987 Sustaining Campaign, Director, and Volunteer Volunteer - Sustaining Campaign Volunteer - Ca ital Cam ai n Selected as the 1 st Affiliate Director to the Board Past Chairman, Treasurer PERSONAL: Married 34 years to Pat Children - Cathy, Kristie, and Michael Grandchildren - Haley 6, Ashton 6, Mackenzie 5, Madeleine 5 RESIDENCE: 2012 Vintage Circle, Corinth, Texas 76210 S:\Our Docutnen1.<i\&aolutions\05\Nonh Texas :tligber Ed1l:cation Authority.doc RESOLUTION NO. A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE NORTH TEXAS HIGHER EDUCATION AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for Places 6, 8 and 9 on the Board of Directors of the North Texas Higher Education Authority, Inc. have expired; and WHEREAS, the Board has nominated Lindsay Keffer - Place 6, Jerry Falbo - Place 8, and Jim Brock - Place 9 on the Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That Lindsay Keffer is hereby appointed to Place 6 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2005 and continuing through September 30, 2007. . SECTION 2. That Jerry Falbo is hereby appointed to Place 8 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2005 and continuing through September 30,2007, SECTION 3. That Jim Brock is hereby appointed to Place 9 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1,2005 and continuing through September 30,2007, SECTION 4. 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: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: <JU-MlLuJ AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose .. SUBJECT Consider approval of a resolution nominating members 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 that the term for members on the current DCAD Board of Directors expires December 31, 2005. Therefore, DCAD is seeking nominations from taxing jurisdictions in the district. The attached resolution is available for City Council to make a nomination(s) for members to the DCAD Board of Directors. Once nominations from all taxing jurisdictions are received by DCAD, a ballot will be sent to the City for City Council to cast their vote to elect a member at the November 15, 2005, City Council meeting. The number of votes a taxing unit has is determined by their proportional share of the total levy in the district from the prior tax year. There are a total of 5,000 votes throughout the district. One thousand votes are the maximum number needed to elect a local representative/nominee to the Board of Directors. This year, the City has 163 votes and DISD 692 votes. In 2003, the City and DISD collectively voted and elected Rick Woolfolk. The current DCAD Board Members include Charles Stafford (Denton), Rick Woolfolk (Denton), Lee Baker (Flower Mound), and Ben Harmon (Lewisville). Steve Mossman was made a voting member in July 2005, due to the resignation of Richard Smith. Prior to this appointment, Steve was a non-voting, ex-officio member of the Board as required in the Texas Property Tax Code. SCHEDULE Applies only to every other year: Prior to Oct. 1 - DCAD notifies taxing entities of the number of votes they are entitled to cast for appropriating board members. Prior to Oct. 15 - Nominations for DCAD Board of Directors are submitted to DCAD by each jurisdiction (via resolution). Prior to Oct. 30 - DCAD compiles comprehensive list of nominees and forwards list to each taxing unit in ballot forms. Agenda Information Sheet September 20, 2005 Page 2 Prior to Dec. 15th - Taxing units choose by written resolution a candidate(s). Name(s) of candidate(s) are submitted to DCAD along with the number of votes for each candidate. Prior to Dec. 31 st - DCAD tabulates votes and forwards results to taxing units. The five (5) candidates with the most votes become the Board of Directors as of January 1. Eligibility Guidelines: . The selection process is set forth in Section 6.03 of the Property Tax Code. . 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". . 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. Agenda Information Sheet September 20, 2005 Page 3 EXHIBITS DCAD Board of Directors Nomination Information Resolution Re~pectfully submitted: ~A~- : ~ ; --, ", \:.'_.,- - ~ :" . t '"0 ~ I ~ . _ -_ _ __ ;iII~. ,.,. Diana G. Ortiz Director of Fiscal Operations DENTON CENTRAL ApPRAISAL DISTRICT 3911 Morse Street, P.O. Box 2816 ' Denton, TX 76202-2816 www.dentoncad.com MEMO TO: Denton County, All School Districts and All Cities That Levy A Tax FROM: Joe Rogers SUBJECT: Request for Nominations for Denton CAD Board of Directors DATE: September 7, 2005 It is time again for the taxing jurisdictions to select five individuals to serve as the DCAD Board of Directors. Each jurisdiction may nominate up to five people to be considered for the Board of Directors. According to Section 6.03 of the Property Tax Code, it is the chief appraiser's responsibility to initiate this process, which is the purpose of this memo. Please note that a chief appraiser does not have the authority, or the duty, to investigate, or judge, the qualifications of the nominees. Further, a chief appraiser can not extend the deadline for receiving nominations. Attached is a nominee form. Please return a form for each nominee by October 15, 2005. CALENDAR FOR APPOINTMENTS: 1. Prior to October 1 st - Each juriSdiction will be advised of the number of votes they are entitled to cast for appointing the Board members. (See Attached) 2. Prior to October 15th - The governing body of each jurisdiction nominates candidates to the DCAD Board of Directors. Each taxing jurisdiction can nominate up to five candidates if they wish. The number of votes that each juriSdiction has is not relevant in the initial nomination phase. 3. Prior to October 30th - A comprehensive list of the nominees will be compiled and this information will be sent to the taxing juriSdictions in the form of a ballot. 4. Prior to December 15th - The taxing jurisdictions choose by written resolution the candidate, or candidates, of their choice. The jurisdictions then submit the names of their candidates and the votes they cast for each candidate prior to the December 15th deadline. 5. Prior to December 31 st - A tabulation of the votes will be forwarded to the jurisdictions. The five candidates that have received the most votes become the Board of Directors as of January 1 st. Phone: 940-349-3800 Metro: 972-434-2602 Fax: 940-349-3801 Memo, Appointing Board of Directors, September 7,2005 Page 2 SELECTING A NOMINEE AUTHORITATIVE GUIDELINES - The selection process is set forth in Section 6.03 of the Property Tax Code. This process is not an "election" governed by the Texas Election Code. It is an independent procedure unique to the property tax system. ELIGIBILITY - An appraisal district director must reside in the appraisal district for at least two years immediately preceding the date he or she takes office. Most residents are eligible to serve as a director. An individual that is serving on the governing body of a city, county, or school district is eligible to serve as an appraisal district's 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 if 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 contract with the district or a taxing unit. A chief appraiser may not employ someone closely related to a member of the board of directors". 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. DENTON CENTRAL APPRAISAL DISTRICT 2005 DISTRIBUTION OF VOTES 2004 %OF TOTAL NUMBER JURISDICTIONS TAX LEVY LEVIES OF VOTES SCHOOL DISTRICTS: SOl ARGYLE ISD $11,628,671.44 1.441 % 72 S02 AUBREY ISD $5,234,948.34 0.649% 32 S05 DENTON ISD $111,690,985.68 13.837% 692 S07 KRUM ISD $8,110,622.80 1.005% 50 S08 LAKE DALLAS ISD $18,352,939.72 2.274% 114 S09 LEWISVILLE ISD $301,632,632.53 37.367% 1866 S10 LITTLE ELM ISD $16,689,505.80 2.068% 103 Sl1 NORTHWEST ISD $98,062,250.77 12.]48% 607 S12 PILOT POINT ISD $6,712,756.56 0.832% 42 S13 PONDER ISD $10,014,567.13 1.241 % 62 ' S14 SANGER ISD $9,769,569.31 1.210% 61 SCHOOL DISTRICTS TOTALS $597,899,450.08 74.070% 3701 GOl DENTON COUNTY $91,696,817.12 11.360% 568 CITIES: C26 CITY OF ARGYLE $1,024,754.97 0.127% 6 COl CITY OF AUBREY $426,314.59 0.053% 3 C31 TOWN OF BARTONVILLE $269,016.14 0.033% 2 C42 TOWN OF CLARK $69,964.13 0.009% 1 C03 CITY OF THE COLONY $12,448,889.30 1.542% 77 C04 TOWN OF CORINTH $6,721,510.25 0.833% 42 C27 TOWN OF COPPER CANYON $202,671.84 0.025% 1 C05 CITY OF DENTON $26,353,489.67 3.265% 163 C30 CITY OF DOUBLE OAK $530,275.15 0.066% 3 C07 CITY OF FLOWER MOUND $22,885,144.91 2.S35% 142 C22 TOWN OF HACKBERRY $64,911.67 0.008% 1 C19 TOWN' OF HICKORY CREEK $824,349.40 0.102% 5 COS CITY OF HIGHLAND Vll.LAC $6,765,768.40 0.83S% 42 C09 CITY OF JUSTIN $607,039.50 0.075% 4 C]S CITY OF KRUGERVILLE $147,145.08 0.0]8% ] C]O CITY OF KRUM $470,312.14 0.058% 3 Cll CITY OF LAKE DALLAS $1,683,819.18 0.209% 10 C25 TOWN OF LAKEWOOD VILL $105,236.27 0.013% 1 C12 CITY OF LEWISVILLE $23,591,446.06 2.923% 146 C13 CITY OF LITTLE ELM $2,843,439.99 0.352% IS C23 CITY OF MARSHALL CREEK $43,941.59 0.005% 1 C33 CITY OF NORTHLAKE $224,144.30 0.02S% 1 C24 CITY OF OAK POINT $1,024,267.71 0.127% 6 CI4 CITY OF PILOT POINT $759,331.15 0.094% 5 C15 CITY OF PONDER $208,389.42 0.026% 1 C]7 CITY OF ROANOKE $2,617,892.26 0.324% 16 C16 CITY OF SANGER $1,718,167.24 0.213% 11 C34 TOWN OF SHADY SHORES $464,759.92 0.058% 3 C28 CITY OF TROPHY CLUB $2,517,962.23 0.312% 16 CITIES TOTALS $117,614,354.46 14.570% 730 GRAND TOTALS $807.210,621.66 100.000% 5000 KA THYW\SHEET\2005ALLOC.XLS NOMINATION FORM Please return this form to DCAD no later than October 15th. Reminder....your jurisdiction may nominate up to five candidates to the Denton Central Appraisal District Board of Directors. Please include the address and phone number of your nominees. Name of your jurisdiction: Name of nominee: Name Address City Zip Phone#~___-____ Please provide work or personal experience that would be applicable to an appointment on the Denton Central Appraisal District Board of Directors 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 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\ResoIutions\05\nominate central appraisal district2.doc RESOLUTION NO. A RESOLUTION NOMINATING MEMBERS TO THE BOARD OF DIRECTORS OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for the Board of Directors of the Denton Central Appraisal District will expire on December 31,2005; and WHEREAS, the City of Denton, Texas wishes to nominate members to said Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton, Texas hereby nominates- and as a members to the Board of Directors of the Denton Central Appraisal District for two-year terms to commence January 1, 2006. 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: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2005 DEPARTMENT: Economic Development ~ ACM: Mike Conduff, City Manager SUBJECT Consider nominations/appointments to the City's Economic Development Partnership Board. BACKGROUND The City Council appointed a nominating committee at the September 7,2004 meeting to present a slate of nominees for the Economic Development Partnership Board for Council consideration. The following Board positions will be vacant: Euline Brock - City Council category Jerry Mohelnitzky - Chamber of Commerce Board category Harry Crumpacker - Top Twenty Taxpayer category ESTIMATED SCHEDULE EDP Board members will serve two-year terms. Board members may serve three consecutive terms. Respectfully submitted: Linda Ratliff, Director Economic Development Department - 1 - AGENDA INFORMATION SHEET AGENDA DATE: September 20,2005 DEPARTMENT: City Manager's Office CM: Mike Conduff, City Manager SUBJECT Consider nominations/appointments to the City's Boards and Commissions. BACKGROUND The following is a list of current board/commission vacancies: Construction Advisory and Appeals Board - Council Member Montgomery has a nomination. Zoning Board of Adjustment - There are two alternate "All" positions available for nominations. If you require any further information, please let me know. Respectfully submitted: Jane Richardson Assistant City Secretary S :IAgenda ItemslBoard-Commission vacancies. doc HANDOUT TO COUNCIL ASSET PURCHASE AGREEMENT Between DENTON COUNTY TRANSPORTATION AUTHORITY Buyer And CITY OF DENTON, TEXAS Seller, For the Sale and Purchase of Certain Assets of City of Denton, Texas Dated as of September 30, 2005 78523S.28/SP3/13144/0 1 0 1109 1 905 ~ 11,0\06 :flt:Y'iI 5~ ARTICLE I 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15. 1.16. 1.17. 1.18. 1.19. 1.20. 1.21. 1.22. 1.23. 1.24. 1.25. 1.26. 1.27. 1.28. 1.29. 1.30. 1.31. 1.32. 1.33. 1.34. 1.35. 1.36. 1.37. 1.38. 1.39. ARTICLE II TABLE OF CONTENTS Page DEFI N ITI ONS.......................................................................................... 1 "Agreement" ............................................................................................ 1 "Assets" ................................................................................................... 1 "Assignment of McDonald Operating Agreement" ...................................1 "Assignment of Service Marks"................................................................ 1 "Bill Of Sale" ....................................,.......................................................1 "Buses" .................................................................................................... 1 "Business" ............ ... ........ ... .................. ....................... .... ... ........ ............. 2 "Business Day" ........................................................................................ 2 "Business Intellectual Property" ............... ................................... ............. 2 "Buyer" ..................................................................................................... 2 "Buyer Documents"..... ................. ..... ................................. .... ........ .......... 2 "Closing" .................................................................................................. 2 "Closing Date".............. ...................... ......................................................2 "Code" .......................................................... ...........................................2 "Effective Time" .................. ............. .......................... ..... .... ....... .............. 2 "Equipment" ............................................................................................. 2 "Escrow Agent" ........................................................................................ 2 "Escrow Agreement" ................................................................................ 2 "FTA".......................................................................................................2 "Governmental Body" .............................................................................. 3 "Knowledge of Buyer," "Buyer's Knowledge" ...........................................3 "Knowledge of Seller," "Seller's Knowledge" ...........................................3 "Liabilities" ............................................................................................... 3 "Lien" .............................. ................................................. .........................3 uLosses"........................_.........._..................... ......... ......... .........._..... n....... 3 "Master Lease Agreement" ...........................................:.......................... 3 "Other Buses" .................................................................................... ...... 3 "Other Bus Transfer Instrument" ..............................................................3 "Person"................................................................................................... 3 "Purchase Price" .................................. ...................................... .... .......... 3 "Seller" ..................................................................................................... 3 "Seller Docu ments" ............................................ ......................................4 "Shelters and Benches" ...........................................................................4 liT axeslJ ....... _........... ............. ................................_..............._................... 4 "Titles" ....................................................................................................4 "TXDOT" ................................................ ................................................4 "U .S. DOT" ............................................................................................. 4 "Use Agreement" ..................................................................................... 4 "Vehicles" ............................................................................................... 4 SALE AND PURCHASE OF CERTAIN ASSETS AND CONVEYANCE OF OTHER ASSETS...............................................................................4 785236.2B/{5P3/13144/01 01/091 905 2.1. 2.2. 2.3. ARTICLE III 3.1. 3.2. ARTICLE IV 4.1. ARTICLE V 5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 5.B. 5.9. 5.10. 5.11. 5.12. 5.13. ARTICLE VI 6.1. 6.2. 6.3. 6.4. 6.5. ARTICLE VII 7.1. 7.2. 7.3. 7.4. 7.5. ARTICLE VIII B.1. B.2. B.3. B.4. B.5. B.6. Sale of Certain Assets. ............................................................................4 Transfer of Other Buses. ................................,........................................5 "AS IS" Transfer....... ... ............. .... ......................... ............... ........ ............ 5 CLOSI NG ..............................:................................................................. 5 Closing Date. ........ ........................ ............. ........... ......... ......... ..... ....... ..... 5 Deliveries at the Closing. ......................................................................... 5 PURCHASE PRI CE......... ........................................................................ B Purchase Price. ....................................................................................... B REPRESENTATIONS AND WARRANTIES OF SELLER ....................... B Organization. ......,........................................ ............................................ B Authority; Consents and Approvals. ........................................................B Title to Assets and Other Buses. ............................................................. 9 No Injunctions or Orders..........................................................................9 Compliance with Laws. ...... ............................................... ...... .................9 Contracts. .. ............... ................................... ........... ........... ......................9 Brokers. ........ ........................ ............................. ....... .............................9 Patent or Trademark Claims. ....:.................................................. ... .........9 Valid Representations and Warranties. ...................................................9 No Taxes Due.................... ................... ............. ................ ...... .......... ....10 No Liens. ...................... ...................... .... ...............................................10 Prudent Business Operation. ............ ........ ........... ..... ................... ..........10 Litigation...... ............................... .............................. ............................. 10 REPRESENTATIONS AND WARRANTIES OF BUYER.......................1 0 Organization. ..... ................... ...... ........................... ................................ 1 0 Authority, Consents and Approvals. ......................................................10 No Injunctions or Orders........................................................................10 Litigation. .......... ........................................................ .... ......................... 11 Brokers. ....... .............................................. ............................................ 11 FURTHER AGREEMENTS ...................................................................11 Additional Actions by Seller and Buyer. .................................................11 Announcements..................................................................................... 11 Transaction Costs............... .................................. .................................11 Fire and Casualty. .................................................................................11 FT A Approval............................... .................. .......... ..............................12 MISCELLANEOUS... .......... ............................. ................................. ..... 12 Entire Understanding, Waiver, Etc.........................................................12 Severability. ..... ............ ....................... ... ............ ....................................13 Accounting Terms......................................... ..... ....................................13 Notices. ...... ............ .......... ................... :........ .........................................13 Successors and Assigns. ......................................................................14 Waivers. ...... .... ............ .....i..................... ........... .................... ............ .... 14 7B5236.2B/SP3I13144/01 01/091 905 ii 8.7. Counterparts. .................... ............................ ......... ......... ....................... 14 8.8. Attorneys' Fees and Costs. ................................................................... 14 8.9. Headings. ...... ....................... ...... .................... .............. .................... ..... 14 8.10. Governing Law. ..........................................:...::.....................................14 iii 7B5236.28/SP3f13144101 011091905 EXHIBITS Exhibit 1.4 - Assignment of Service Marks Exhibit 1.5 - Bill Of Sale iv 785236.28fSP3J13144/0 1 01/091905 SCHEDULES Schedule 1.9 - Business Intellectual Property Schedule 1.16 - Equipment Schedule 1.33 - Shelters and Benches Schedule 1.39 (a) - Buses Schedule 1.39 (b) - Other Buses Schedule 5.6 - Contracts v 785236.28fSP3/13144/01 01/091 905 ASSET PURCHASE AGREEMENT This Asset Purchase Agreement (this "Agreement")is entered into as ofthe~ day of September 2005, by and between CITY OF DENTON, Texas, a Texas municipal corporation and home rule city ("Seller"), and DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision, and a coordinated county transportation authority created pursuant to Chapter 460, Texas Transportation Code ("Buyer") (occasionally collectively, the "Parties" and individually, a "Party"). WHEREAS, a portion of Seller's operation includes the operation of an intra-city bus line under the name "LINK" (the "Business"); and WHEREAS, Seller desires to sell to Buyer, on the terms and subject to the conditions of this Agreement, the Assets (as defined below) used by Seller in the Business, and Buyer desires to acquire the Assets, upon the terms set forth in this Agreement; NOW, THEREFORE, intending to be legally bound, the Parties agree as follows: ARTICLE I DEFINITIONS The terms defined in this Article shall have the following meanings: 1.1. "Agreement" shall have the meaning set forth in the opening paragraph of this Agreement. 1.2. "Assets" shall have the meaning set forth in Article II of this Agreement. 1.3. "Assignment of McDonald Operating Agreement" means that certain Assignment of McDonald Operating Agreement between McDonald Transit Associates, Inc., a Texas corporation ("McDonald"), and Buyer, which shall be completed, executed and delivered at Closing, and by the terms of which Seller and McDonald assign to Buyer that certain Agreement to Provide Management and Operation Services for Passenger Motor Carrier Transit System dated April 16, 2002 (as amended) between Seller and McDonald. 1.4. "Assignment of Service Marks" means that certain Assignment of Service Marks, in the form of Exhibit 1.4 attached to this Agreement and incorporated herein by reference for all purposes, and which shall be completed, executed and delivered by Seller at Closing. . 1.5. "Bill Of Sale" means the bill of sale, in the form of Exhibit 1.5 attached to this Agreement and incorporated herein by reference for all purposes, and which shall be completed, executed and delivered by Seller at Closing. 1.6. "Buses" means as defined in the definition of "Vehicles" below. ASSET PURCHASE AGREEMENT - Page 1 785236.2B1SP3f13144101 01 1091905 .- 1.7. "Business" shall have the meaning set forth in the second recital of this Agreement. 1.8. "Business Day" means any day other thana Saturday, Sunday; or a 'national holiday in the U.S.A. 1.9. "Business Intellectual Property" means all of the trade secrets, processes, confidential business information, technical formulas, technology and know-how, data, designs, drawings, specifications, supplier lists, pricing and cost information, business and marketing plans and proposals, and all copies and tangible embodiments thereof (in whatever form or medium) that are primarily used in the conduct of the Business or are known by Seller to be necessary for the continued conduct of the Business by Buyer after the Closing Date. 1.10. "Buyer" shall have the meaning set forth in the opening paragraph of this Agreement. 1.11. "Buyer Documents" shall have'the meaning set forth in Section 3.2 (b) of this Agreement. 1.12. "Closing" shall have the meaning set forth in Section 3.1 of this Agreement. 1.13. "Closing Date" means the date on which the Closing actually occurs pursuant to Section 3.1 of this Agreement. 1.14. "Code" means the Internal Revenue Code of, 1986, as amended, or any successor statute thereto. 1.15. "Effective Time" means the effective time of the Closing specified in Section 3.1(b) of this Agreement. 1.16. "Equipment" means, collectively, the computers, servers, printers, scanners, fax machines, automobiles, office furniture, bus-related signs, cabinets, fixtures, telephone system, tools and equipment utilized by Seller in the Business and identified on Schedule 1.16 attached to this Agreement and incorporated herein by reference for all purposes. 1.17. "Escrow Agent" means as defined in the definition of "Escrow Agreement" below. 1.18. "Escrow Agreement" means that escrow agreement by the terms of which Seller, Buyer and American Escrow Company ("Escrow Agent") agree that the fully completed and endorsed negotiable Texas Certificates of Title to each of the Vehicles will be deposited at Closing and in accordance with the terms and conditions set forth therein will be released to the Seller or Buyer, as applicable. 1.19. "FT A" means the Federal Transit Administration of the United States Department of Transportation. ASSET PURCHASE AGREEMENT - Page 2 785236.28/SP3/13144/0101/091905 -e" 1.20. "Governmental Body" means any federal, state, local or other governmental department, commission, board, bureau, agency, instrumentality or other authority. 1.21. "Knowledge of Buyer," "Buyer's Knowledge" or any substantially similar term means to the best of Buyer's knowledge. 1.22. "Knowledge of Seller," "Seller's Knowledge" or any substantially similar term means to the best of Seller's knowledge. 1.23. "Liabilities" means any indebtedness, liability, loss, damage, deficiency or obligation, known or unknown, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise, whether or not of the kind required by accounting principles generally accepted in the United States to be set forth on a financial statement, including any liability for Taxes. 1.24. "Lien" means any lien, pledge, mortgage, security interest, claim, lease, charge, option, right of first refusal, easement, servitude, transfer restriction or any other encumbrance, restriction or limitation whatsoever. 1.25. "Losses" means any and all losses, costs, expenses, obligations, liabilities or damages, inciuding, without limitation, court costs, reasonable attorneys' fees and disbursements. 1.26. "Master Lease Agreement" means that written lease agreement between Buyer and Seller, which is the owner of that real estate specifically described therein and commonly known as 1100 Mayhill Road, City of Denton, County of Denton, Texas (collectively, the "Real Property"). 1.27. "Other Buses" means those vehicles referenced in the definition of "Vehicles" below. 1.28. "Other Bus Transfer Instrument" means that document by the terms of which Seller conveys and transfers to Seller all of its right, title and interest to the Other Buses for the consideration therein stated. 1.29. "Person" means an individual, partnership, limited liability company, corporation, trust, unincorporated organization, association or joint venture or Governmental Body. 1.30. "Purchase Price" shall have the meaning set forth in Section 4.1 of this Agreement. 1.31. "Seller" shall have the meaning set forth in the opening paragraph of this Agreement. ASSET PURCHASE AGREEMENT - Page 3 765236.26/5 P3/13144101 011091905 " 1.32. "Seller Documents" shall have the meaning set forth in Section 3.2 (a) and 3.2 (d) of this Agreement. 1.33. "Shelters and Benches" means each and every pedestrian bus shelter and each pedestrian bench owned by the Seller and identified on Schedule 1.33, attached hereto and incorporated herein by reference for all purposes, on the Closing Date. 1.34. "Taxes" means any federal, state, local or foreign income, gross receipt, license, payroll, employment, excise, severance, occupation, capital stDck, franchise, profits, withhDlding, sDcial security (Dr similar), unemplDyment, disability, real prDperty, persDnal prDperty, sales, use, transfer, registratiDn, estimated or Dther tax Df any kind whatsDever, including any interest, penalty Dr additiDn thereto, whether disputed Dr not. 1.35. "Titles" means, collectively, the negDtiable Texas Certificates Df Title issued fDr each Df the Vehicles as properly completed, executed and endDrsed by Seller (and any lienholderfor the purpose Df the lienhDlder releasing its lien). 1.36. "TXDOT" means the Texas Department of TranspDrtatiDn. 1.37. "U.S. DOT" means the United States Department Df TransportatiDn which regulates the use Df the Buses in the transpDrtatiDn Df public passengers in the U.S.A. 1.38. "Use Agreement" means that agreement by the terms Df which Seller agrees (among other things) that as to any Business Intellectual Property Dwned, licensed tD or Dtherwise utilized by Seller in Dr related tD the Business after CIDSing, Seller shall prDvide Buyer unlimited access tD and use Df same fDr purpDses Df Dperating the Business including, withDut IimitatiDn, the intra-city bus line under the name "LINK" in the City Df DentDn, Texas tD the extent Seller is permitted by contract or law. 1.39. "Vehicles" means cDllectively all Df thDse vehicles identified on Schedule 1.39 (a) attached heretD and incDrporated herein by reference for all purpDses (collectively, the "Buses") and each Df thDse vehicles identified Dn Schedule 1.39 (b) attached heretD and incDrporated herein by reference fDr all purposes (collectively, the "Other Buses"). ARTICLE II SALE AND PURCHASE OF CERTAIN ASSETS AND CONVEYANCE OF OTHER ASSETS 2.1. Sale of Certain Assets. On the terms and subject tD the conditiDns stated in this Agreement, at the CIDsing, Seller shall sell, transfer, assign, cDnvey and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller all of Seller's right, title and interest in and tD certain Df the assets of Seller used in the ASSET PURCHASE AGREEMENT - Page 4 785236.28/SP3/131441O 1 011091905 ,.,0 cDnduct Df the Business (cDllectively, the "Assets"). including each Df the following: (a) the Buses identified on Schedule 1.39 (a); (b) the Equipment; (c) the Shelters and Benches; (d) any and all Governmental Body licenses, permits, certificates of authority, certificates Df Dccupancy, authorizations, approvals, registrations, franchises and similar consents relating' to the Business, tD the extent assignable; (e) any Business Intellectual Property as identified Dn Schedule 1.9 attached heretD and incorpDrated herein by reference for all purpDses; and (f) the Route Match SDftware. 2.2. Transfer of other Buses. Further, subject tD the terms and cDnditions of this Agreement, . at the Closing, Seller shall convey and transfer to Buyer all Df Seller's right, title and interest in and to each of thDse Other Buses listed on Schedule 1.39 (b) in cDnsideratiDn Df Buyer's agreement (as evidenced by this Agreement) to establish, operate and maintain an intra-city bus system in the City Df Denton. 2.3. "AS IS" Transfer. Buyer agrees that all of the Assets are being cDnveyed and transferred by Seller to Buyer in accordance herewith on an AS IS, WHERE IS basis and that Seller is not making any warranties regarding the suitability of the Vehicles or other Assets for any intended use Dther than thDse required by FT A. Further, Buyer agrees that it has examined each Df the Vehicles and other Assets and accepts them in their present repaired cDndition. ARTICLE III CLOSING 3.1. ClosinQ Date. (a) The Closing hereunder (the "Closing") shall take place on September 30, 2005 at 11 :00 a.m. (the "Closing Date"). (b) The effective time Df the Closing hereunder will be deemed tD have Dccurred at 5:00 p.m. (Central time) Dn September 30, 2005 (the "Effective Time"). 3.2. Deliveries at the CIDsinQ. (a) At the CIDsing, Seller will deliver tD Buyer the follDwing: ASSET PURCHASE AGREEMENT - Page 5 785236.28fSP3/13144!01 01 1091 905 i) the Bill Of Sale duly completed and executed by Seller and listing therein, among other things, all Assets (including, without limitation, all Vehicles and Equipment) being sold to Buyer and the Purchase Price for same as determined in accordance with Section 4.1 below; ii) the Other Bus Transfer Instrument duly completed and executed by Seller and listing therein each of the Other Buses being conveyed and transferred by Seller to Buyer in accordance with Section 2.2 above for the consideration therein stated; iii) the Assignment of Service Marks duly executed by Seller; iv) a Certificate of the City Secretary of Seller, certifying (among other things) that attached thereto are true and correct copies of each resolution or ordinance of the City Council of Seller authorizing the execution, delivery and performance of this Agreement, the Master Lease Agreement and the other related agreements and documents referenced herein and executed pursuant to or related to this Agreement; v) all contracts, agreements, commitments and rights pertaining to the Business and other data relating to its assets, business and operation including, without limitation, all Vehicles and Equipment, except its books of account and supporting records; provided, however, after Closing, Seller shall provide Buyer with copies of such portions of said books of account as Buyer may from time to time require; and vi) all applicable sales, transfer, documentary, use, filing and other taxes and fees that may be due or payable as a result of the conveyance, assignment, transfer, or delivery of the Other Buses and the Assets, p~operty or Business to be conveyed and transferred as provided herein shall be borne by Buyer. vii) Assignment of McDonald Operating Agreement as separately consented to in writing by McDonald; viii) the unrestricted possession of each Vehicle and the other tangible Assets; ix) The entirety of Seller's unused bus pass stock; x) and: (a) such other deeds, bills of sale, endorsements, assignments, and other good and sufficient instruments of conveyance, to vest all right, title, and interest of the Seller in the Buyer to ASSET PURCHASE AGREEMENT - Page 6 7B5236.28/SP3J13144/0 1 01/091 905 property and Business being transferred to the Buyer from the Seller, free and clear of all Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a Lien granted to TXDOT), in accordance herewith, except the Titles for the Vehicles will be deposited with the Escrow Agent in accordance with Section 3.2(d) below); (b) simultaneously with such delivery, the Seller will take all such steps as may be required to put the Buyer in actual possession, operation and control of the Other Buses, the Assets, properties and Business to be transferred hereunder; xi) and such other instruments, documents or agreements that Buyer may reasonably request to carry out the transactions contemplated by this Agreement or comply with the terms of this Agreement. (b) At the Closing, Buyer will deliver to Seller: i) the Purchase Price in a form acceptable to Seller; H) a Certificate of the Secretary of Buyer, including resolutions of the Board of Directors, authorizing the execution, delivery and performance of this Agreement and the related agreements and documents; iii) such other instruments, documents or agreements as Seller may reasonably request to carry out the transactions contemplated by this Agreement and to comply with the terms of this Agreement. (c) At the Closing, Seller and Buyer shall mutually complete, execute and deliver to the other party each of the following: i) the Master Lease Agreement; ii) the Use Agreement; and Hi) the Escrow Agreement; (d) At the Closing, Seller shall deliver to the Escrow Agent: i) the original negotiable Texas Certificates of Title for each of the Vehicles, completed and properly executed and endorsed by the Seller (and lienholder for the purpose of releasing its lien) and free and clear of any Liens, encumbrances or restrictions (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794), which is subject to a TXDOT Lien); ASSET PURCHASE AGREEMENT - Page 7 785236.2B/SP3113144fO 1 0 1/091605 (e) From time to time after the Closing, at the request of the Buyer, the Seller. will execute and deliver to the Buyer such other instruments of conveyance and transfer or any other instruments, documents or agreements and take such other action as the Buyer may reasonably require to more effectively convey, transfer to, vest all of Seller's right, title and interest in, and to put the Buyer in possession of, any of the properties, the Other Buses or the Assets to be conveyed, transferred and delivered to the Buyer hereunder or to carry out the transactions contemplated by the Agreement or to comply with the terms of this Agreement. ARTICLE IV PURCHASE PRICE 4.1. Purchase Price. The Purchase Price payable to Seller by Buyer as consideration for the sale, transfer, conveyance and assignment of the Assets (the "Purchase Price") shall be: (a) Two Hundred Thirty Three Thousand Dollars ($233,000). ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby represents and warrants to Buyer as follows: 5.1. Orqanization. Seller is a Texas home rule municipal corporation duly incorporated and chartered and validly existing under the laws of the State of Texas and has a[1 requisite right, power and authority to own, lease and operate all of its properties and assets used in the Business and to carry out the Business as it is presently conducted. 5.2. Authoritv: Consents and Approvals. Seller has all requisite right, power and authority to execute, deliver and perform this Agreement and each other document and agreement referenced in this Agreement or to be executed and delivered by Seller pursuant to this Agreement (together, the "Seller Documents"). The execution, delivery, and performance of the Seller Documents by Seller has been duly and validly authorized and approved by all necessary actions of its City Council. This Agreement constitutes a valid and legally binding obligation of Seller, and the execution, delivery and performance of the Seller Documents by Seller will not violate Seller's Charter or applicable ordinances, as each is amended to the date of this Agreement, or (a) violate in any material respect any applicable provision of law or any rule or regulation of any Governmental Body or any order, writ, injunction, judgment or decree of any court, administrative agency or Governmental Body, (b) require any consent under or constitute a default under any material agreement, indenture, mortgage, deed of trust, lease, or other instrument to which Seller is a party or by which it is bound, or any license, permit or certificate held by it, or (c) result in the creation of any Lien upon any of the Assets or the Other Buses. ASSET PURCHASE AGREEMENT - Page 8 7 85236.28/SP3f13144101 0 1/091905 5.3. Title to Assets and Other Buses. At Closing, Seller will have the full right and power to convey and will convey to Buyer, effective as of the Effective Time, all of its right, title and interest to the Assets and the Other Buses, free and clear of any and all Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a TXDOT Lien) except that the Titles will be deposited with the Escrow Agent in accordance with Section 3.2(d). 5.4. No Iniunctions or Orders. Except for the approval of the FTA as is required by Article 7.5 below for the transfer of the Other Buses and the sale of the Buses, there are no other necessary governmental consents, approvals or filings necessary for the conveyance and transfer of the Other Buses or the sale of the Assets by Seller. Seller is not subject to and, to Seller's Knowledge, has not been threatened with any injunctions of any court or orders of any federal, state or municipal court or Governmental Body, which would limit or otherwise adversely affect Seller's ability to convey and transfer the Other Buses or sell the Assets or to conduct the Business substantially as it is currently conducted by Seller. 5.5. Compliance with Laws. Seller has complied in all material respects with all federal, state and local laws and regulations applicable to the Other Buses and the Assets and the Business. 5.6. Contracts. Seller represents that the contracts or agreements listed on Schedule 5.6, attached hereto and incorporated herein by reference for all purposes, are the only contracts or agreements Seller has entered into which are in effect and may create a liability for Buyer. 5.7. Brokers. No agent, broker, investment banker or other Person acting on behalf of Seller or under its authority is or will be entitled to any broker's or finder's fee or any other commission or similar fee, directly or indirectly, in connection with the transactions contemplated by this Agreement for which Buyer will be liable. 5.8. Patent or Trademark Claims. The Seller has no knowledge of any claim or reason to believe that it is or may be infringing or otherwise acting adversely to the rights of any Person under or in respect of any patent, trademark, service mark, trade name, copyright, license, franchise, or other similar intangible right. The Seller is not obligated or under any liability whatever to make any payments by way of royalties, fees or otherwise to any owner or licensee of or other claimant to any patent, trademark, trade name, copyright, franchise, or other intangible asset with respect to the use thereof or in connection with the conduct of the Business or otherwise. 5.9. Valid Representations and Warranties. No representation or warranty by the Seller in this Agreement or in any writing required hereunder or related hereto, contains or will contain any untrue statements of material fact or omits or will omit to state any material fact required to make the statements herein or therein contained not misleading. ASSET PURCHASE AGREEMENT - Page 9 785236,29/SP3/13144/0101/092005 5.10. No Taxes Due. The Seller has filed all federal and state withholding and employment tax returns and paid all taxes that are now due and payable or will be due and payable as of the date of the Closing. 5.11. No Liens. All of the Other Buses and the Assets are being transferred free and clear of any indebtedness or Liens (except as to that Vehicle (Texas Vehicle Identification Number 1 FDXE45S43HA62794) which is subject to a TXDOT Lien), and there are no tax or judgment liens against Seller or the Business to be transferred, except (a) for the approval of the FT A as is required by Article 7.5 below for the transfer of the Other Buses and the sale of the Buses, and (b) the Titles to the Vehicles are being deposited at Closing with the Escrow Agent in accordance with Section 3.2(d). 5.12. Prudent Business Operation. Seller will continue until the Effective Time on Closing Date to operate the Business in a reasonable and prudent manner. 5.13. Litiqation. Seller is not a party to, nor has any knowledge of any threat of, any litigation in which any Asset of Seller being sold to Buyer hereunder or any Other Bus being conveyed and transferred by Seller hereunder is the subject of any such litigation or is affected by or could be affected by any such existing or threatened litigation. ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER Buyer hereby represents and warrants to Seller as follows: 6.1. Orqanization. Buyer is a political subdivision of the State of Texas and a coordinated county transportation authority created pursuant to Chapter 460, Texas Transportation Code, validly existing under the laws of the State of Texas and has the full right, power and authority to own, lease and operate the Assets and the Business in the State of Texas. 6.2. Authoritv, Consents and Approvals. Buyer has all requisite, necessary and appropriate power and authority to execute, deliver and. perform this Agreement and each other document and agreement referenced in this Agreement or to be executed and delivered by Buyer pursuant to this Agreement (together, the "Buyer Documents"). The execution, delivery and performance of the Buyer Documents by Buyer have been duly and validly authorized and approved by the governing body of the Buyer. 6.3. No Iniunctions or Orders. Buyer is not engaged in, nor is there pending or, to Buyer's Knowledge, threatened, any action, dispute, claim, litigation, arbitration, investigation or other proceeding at law or in equity or before any Governmental Body or other administrative agency nor are there any injunctions of any court or orders of any federal, state or municipal court or Governmental Body which could adversely affect Buyer's ability to perform any of its obligations under this Agreement or the transactions contemplated by this Agreement. ASSET PURCHASE AGREEMENT - Page 10 765236.28/S P3113144!O 1 0 1/091 905 6.4. LitiQation. There is no pending or, to Buyer's Knowledge, threatened litigation against Buyer that would inhibit Buyer's ability to consummate the transactions contemplated by this Agreement. 6.5. Brokers. No agent, broker, investment banker or other Person acting on behalf of Buyer or under its authority is or will be entitled to any broker's or finder's fee or any other commission or similar fee, directly or indirectly, in connection with the transactions contemplated by this Agreement for which Seller will be liable. ARTICLE VII FURTHER AGREEMENTS 7.1. Additional Actions bv Seller and Buver. After the Closing, Seller and Buyer shall execute and deliver such documents and do and perform all such other acts as may reasonably be required by the other in order to consummate the transactions described in this Agreement. 7.2. Announcements. The Parties will mutually agree as to the time, form and content before issuing any press releases or otherwise making any public statements or statements to third parties with respect to transactions contemplated by this Agreement, except as may be required by law. 7.3. Transaction Costs. Each of Seller and Buyer shall be responsible for the payment of its own costs and expenses incurred in connection with this Agreement (including, without limitation, any attorneys' fees incurred by its counsel) and the transactions contemplated by this Agreement. 7.4. Fire and Casualtv. Subject to the terms and conditions hereof. the Seller assumes all risk of destruction, loss, or damage of any Asset and each of the Other Buses being transferred hereunder due to fire or other casualty up to the Effective Time. Upon said destruction, loss or damage due to fire or other casualty of a substantial portion of the Assets or the Other Buses or the building or buildings in which they are located, the Buyer shall have the option to terminate this Agreement and, in the event of the exercise of such option, all rights of the Buyer and the Seller shall terminate without liability to any party. The Buyer shall notify the Seller within five (5) days after receiving written notice of said destruction, loss or damage due to fire or other casualty, of its decision to terminate this Agreement. If the Buyer does not timely notify the Seller of termination, this Agreement shall remain in full force and effect, provided, however, the Purchase Price shall be adjusted at Closing to reflect such destruction, loss, or damage and if the Buyer and Seller are unable to agree upon the amount of adjustment, the dispute shall be determined by an independent appraiser agreed to by Buyer and Seller and such determination shall be binding upon both the Buyer and the Seller herein; however, on or after the Effective Time the Buyer assumes all risk of destruction, loss or damage of the Assets and the Other Buses being transferred hereunder due to fire or other casualty. ASSET PURCHASE AGREEMENT - Page 11 785236.29/5 P3f 13144fO 1 0 1 1092005 7.5. FTA Approval. As in accordance with Section 3.2(d) above, at Closing, the Titles shall be deposited with the Escrow Agent to be held by and then released by the Escrow Agent to the Buyer in accordance with the terms and conditions of the Escrow Agreement upon Seller receiving FT A approval to transfer the Vehicles to the Buyer and promptly executing and delivering to the Escrow Agent the Statement of FTA Approval By the City of Denton, Texas (Exhibit B to the Escrow Agreement) and upon Buyer receiving FT A approval to receive the Vehicles from the Seller and promptly executing and delivering to the Escrow Agent the Statement of FT A Approval By Denton County Transportation Authority (Exhibit C to the Escrow Agreement), as contemplated herein. However, the Seller and Buyer further agree if the FT A has not approved the sale of the Assets by the Seller to the Buyer and the conveyance and transfer of the Other Buses by the Seller to the Buyer as contemplated in this Agreement by close of business on March 31, 2006, the Seller and Buyer shall immediately commence the good faith negotiation of the terms and conditions of an operating lease of all of the Vehicles by the Seller to Buyer for the purpose of the Buyer's unlimited use of the Vehicles in the establishment, operation and maintenance of an intra-city bus line in the City of Denton and such terms and conditions (among others) of such operating lease shall include, without limitation, each of the following: (a) the Purchase Price shall be deemed by Seller and Buyer to be the full and complete rental to be paid by Buyer and Seller under such operating lease and therefore Buyer shall not have any other or additional rental obligation under the operating lease beyond the Purchase Price as paid at Closing; and (b) the term of the operating lease shall have a scheduled expiration date of April 30, 2010. Further, Seller and Buyer agree that such operating lease shall be executed by Seller and Buyer by no later than close of business on May 31, 2006 unless such date shall be extended in writing by Seller and Buyer that shall provide for interim operation by the Buyer. ARTICLE VIII MISCELLANEOUS 8.1. Entire UnderstandinQ.Waiver, Etc, This Agreement (including all schedules and exhibits attached to this Agreement) and all other agreements executed and delivered at the Closing set forth. the entire understanding of the Parties and supersede any and all prior or contemporaneous agreements and understandings relating to the subject matter of this Agreement, and the provisions hereof may not be changed, modified, waived or altered except by an agreement in writing signed by the Parties to this Agreement. A waiver by any Party of any of the terms or conditions of this Agreement, or of any breach thereof, shall not be deemed a waiver of such term or condition for the future, or ASSET PURCHASE AGREEMENT - Page 12 7B5236.28/SP3113144/0 1 01/091905 of any other term or condition of this Agreement, or of any subsequent breach th e reof. 8.2. Severability. If any provision of this Agreement or the application of such provision shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. 8.3. Accountinq Terms. All accounting terms not specifically defined in this Agreement shall have the meanings given to them under accounting principles generally accepted in the United States. 8.4. Notices. All notices, requests, demands and other communications that are required or may be given under this Agreement shall be in writing. All notices shall be deemed to have been duly given or made: if by hand, immediately upon delivery; if by Federal Express, Express Mail or any other reputable overnight delivery service, one Business Day after being placed in the control of the courier for overnight delivery; and if mailed by certified mail, return receipt requested, five Business Days after mailing. All notices are to be given or made to the parties at the following addresses (or to such other address as either Party may designate by notice in accordance with the provisions of this Section): (a) If to Seller: City of Denton Jon Fortune Assistant City Manager 215 E. McKinney Denton, Texas 76201 Facsimile: (940) 349-8596 j 0 n. fortun e@cityofdenton.com (b) If to Buyer: Denton County Transportation Authority John Hedrick, Executive Director 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 Facsimile: (972) 221-4601 jhedrick@dcta.net With a copy to: Rider Scott, Esq. Strasburger & Price, LLP 2801 Network Boulevard, Suite 600 Frisco, TX 75034 ASSET PURCHASE AGREEMENT - Page 13 7B5236.28/SP3/13 1 44JO 1 01 fQ91905 8.5. Successors and Assiqns. Neither this Agreement nor any of the rights or obligations arising under this Agreement shall be assignable without the prior written consent of the Parties to this Agreement. Nothing in this Agreement, express or implied, shall confer upon any Person, other than the Parties tothi!> Agreement, and their successors and permitted assigns, any rights or remedies under or by reason of this Agreement. 8.6. Waivers. At any time prior to the Closing, any Party to this Agreement may (i) extend the time for the performance of any of the obligations or other acts of the other Party to this Agreement, (ii) waive any inaccuracies in the representations and warranties of the other Party contained in this Agreement or in any document delivered pursuant to this Agreement, and (iii) waive compliance with any of the agreements or conditions contained in this Agreement subject to any specific provisions governing the effect of such extensions or waivers. Any agreement on the part of a Party to this Agreement to grant any such extension or waiver will be valid only if set forth in a written instrument signed on behalf of such Party. 8.7. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 8.8. Attorneys' Fees and Costs. Unless otherwise provided in this Agreement to the contrary, in the event any action or proceeding is commenced by any party to this Agreement to determine rights, duties or obligations under this Agreement, determine a breach of this Agreement and obtain damages as a result of such breach or otherwise enforce this Agreement, the prevailing party in such action or proceeding shall be entitled to recover from the non-prevailing party all of the prevailing party's out-of-pocket costs and expenses, including all reasonable attorneys' fees, disbursements and related charges. 8.9. Headinqs. The headings contained in this Agreement are for the sole purpose of convenience of reference, and will not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement. 8.10. Governinq Law. THIS AGREEMENT SHALL BE CONTROLLED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. (Remainder of Page Intentionally Left Blank-- Signatures Follow) ASSET PURCHASE AGREEMENT - Page 14 785236.28/SP3/13144/01 01/091 905 ~ IN WITNESS WHEREOF, this Agreement has been executed by duly authorized officers of each of the Parties all as of the date first above written. ATTEST: JENNIFER WALTERS CITY SECRETARY By: ATTEST: DENTON COUNTY TRANSPORTATION AUTHORITY By: Jason Pearce, Secretary APPROVED AS TO LEGAL FORM: ASSET PURCHASE AGREEMENT - Page 15 7B5236.2B/SP3/13144/D1 01 JOS 1905 SELLER: CITY OF DENTON, TEXAS By: Name: Title: Euline Brock Mayor BUYER: DENTON COUNTY TRANSPORTATION AUTHORITY By: Name: Charles Emery Title: Chairman APPROVED AS TO LEGAL FORM: By: RIDER SCOTT GENERAL COUNSEL ,. EXHIBIT 1.4 TO ASSET PURCHASE AGREEMENT ASSIGNMENT OF SERVICE MARKS For and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, of which receipt is acknowledged, the CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city ("Assignor"), owner of the entire right, title and interest in the service marks identified on Appendix A attached hereto and incorporated herein for all purposes hereby sells and assigns to DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision, and a coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Assignee"), its entire right, title and interest in the service marks identified on Appendix A along with all good will associated therewith, to be held and enjoyed by the Assignee, Its successors, and assigns, as fully and entirely as the same would have been held and enjoyed by the Assignor had this assignment and sale not been made. In testimony whereof, the Assignor has caused this Assignment of Service Marks to be signed by its duly authorized officer(s) this day of ,2005. ASSIGNOR: CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR ATTEST: JENNIFER WALTERS CITY SECRETARY By: EXHIBIT 1.4 TO ASSET PURCHASE AGREEMENT - . Assicmment of Service Marks 786028.21SP3I1314410101/091605 '- APPROVED AS TO LEGAL FORM: EDWIN M.SNYDER CITY ATTORNEY By: ---.-. STATE OF TEXAS ~ ~ COUNTY OF DENTON ~ This instrument was acknowledged before me on the day of 2005, by Euline Brock, Mayor of the City of Denton, Texas, known or proved to me on satisfactory evidence to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed and in the capacity therein stated, on behalf of such municipal corporation. Notary Public, State of Texas [SEAL] My Commission Expires: EXHIBIT 1.4 TO ASSET PURCHASE AGREEMENT- Assianment of Service Marks 786028.21SP3J13144/0101l091605 Appendix A to Assiqnment of Service Marks - - V) OJ U \J - .Q.. o oI-J OJ - .Q.. o OJ .Q.. b..O C :.Q c "- - - - APPENDIX A TO ASSIGNMENT OF SERVICE MARKS 786028.2/SP3113144/01011091605 EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT BILL OF SALE THIS BILL OF SALE is made as of September 30, 2005, by the CITY OF DENTON, Texas, a Texas municipal corporation and home rule city ("Seller"). WIT N E SSE T H: WHEREAS, the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Buyer") and Seller entered into that certain Asset Purchase Agreement dated as of September 30, 2005 (the "Purchase Agreement") providing, among other things, for the sale by Seller to Buyer of the Assets (as defined in the Purchase Agreement); and WHEREAS, in order to effectuate the sale and purchase of the Assets as aforesaid, Seller is executing and delivering this Bill of Sale; NOW THEREFORE, in consideration of the premises, the consideration paid pursuant to the Purchase Agreement, the mutual covenants and agreements contained in the Purchase Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller hereby SELLS, ASSIGNS, TRANSFERS, SETS OVER AND DELIVERS, and has hereby SOLD, ASSIGNED, TRANSFERRED, SET OVER AND DELIVERED to Buyer, its successors and assigns, all of its right, title, and interest in and to and under all of the Assets (as defined in the Purchase Agreement) including, without limitation, each of the following (all capitalized terms not herein defined shall have the meaning set forth in the Purchase Agreement): (a) the Buses; EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 1 785875.1 O/SP3/13144!01 01/091 905 (b) the Equipment; (c) the Shelters and Benches; (d) the use and operation of the Business; (e) the Business Intellectual Property identified on Schedule 1.9 of the Purchase Agreement; (f) All of Seller's right, title and interest in and to the Route Match Software, as further described in Exhibit A. (g) Customer Data. All of the books, lists, and records of the Seller containing data or information of any kind relating to (i) the customers of the Business as conducted by the Seller with the Assets, and (Ii) the Assets. (h) Intanqible Assets. All right, title and interest of Seller in, to and under the name "LINK" and any derivatives of such name, any service marks, labels, logos, copyrights, designs, rights to telephone numbers and all listings pertaining to Seller in all telephone books and other directories pertaining to the Business, internet domain names, web sites created by, licensed by and/or used by Seller in their operation of the business, arid any registrations or applications for registrations of the foregoing used in the conduct of the Business, and any right to recovery for infringement thereof (including past infringement) and any and all goodwill associated therewith or connected with the use thereof and symbolized thereby. (I) Goodwill. The goodwill and going concern value of the Business conducted by the Seller. U) Licenses and Permits. Any and all Governmental Body licenses, permits, certificates of authority, certificates of occupancy, authorizations, approvals, EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 2 785876,10/SP311314410101/091905 ,. registrations, franchises and similar consents, to the extent assignable, owned or used by Seller in the operation of the Business, whether issued by any Governmental Body or any other Person. For purposes of this paragraph and this Bill of Sale generally, the following terms have the following meanings: "Applicable Law": All applicable provisions (domestic or foreign) of all (i) constitutions, treaties, statutes, laws (including the common law), rules, regulations, ordinances, codes and Orders of or with any Governmental Body, and (ii) Governmental Approvals. "Consent": Any consent, approval, authorization, action, waiver, permit, grant, franchise, concession, agreement, license, exemption or Order of, registration, certificate, declaration or filing with, or report or notice to, any Person (including foreign Persons), including any Governmental Body. "Governmental Approval": Any Consent of, from or with any Governmental Body. "Governmental Body": Any court or any federal, state, municipal or other governmental department, commiSSion, board, bureau, agency, authority or instrumentality, domestic or foreign. "Order": Any order, writ, injunction, directive, decree, judgment, award, restriction, decision or determination of, or agreement with, any Governrnental Body. "Permits": All permits, authorizations, qualifications, certificates, consents, approvals, registrations, variances, exemptions, rights-of-way, franchises, privileges, immunities, grants, ordinances, licenses, waivers and other rights of every kind and character (a) under any (i) Applicable Law, (ii) Order or (Iii) contract with any Governmental Body, or (b) granted by any Governmental Body. "Person": An individual, partnership, joint venture, corporation, company, limited liability company, bank, trust, unincorporated organization, Governmental Body or other entity or group. (k) Claims. All of Seller' rights, claims and causes of action relating to the Assets or the Business. (I) Other Assets. Each of the other Assets listed on Exhibit A attached hereto and incorporated herein by reference for all purposes. EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 3 785876.1 O/SP3113144/0 1 0 1/091 G05 ,. Seller and its successors and assigns, further covenants and agrees that Seller. will do or cause to be done all such further acts and things and will execute, acknowledge and deliver, or will cause to be executed, acknowledged and delivered, any and all such further transfers, conveyances, instruments, powers of attorney and assurances as the Buyer may reasonably require for the better assuring, assigning, transferring and conveying to the Buyer, its successors and assigns, on the terms stated in the Purchase Agreement and herein, all and singular the Assets. As between Seller and Buyer, this Bill of Sale and the Purchase Agreement and any and all other instruments, documents or agreements executed or delivered in accordance with the terms and conditions of the Purchase Agreement constitute the entire agreement, and supersede all other prior agreements or understandings, whether written or oral, with respect to the subject matter hereof. THIS AGREEMENT SHALL BE CONTROLLED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. SELLER MAKES NO REPRESENTATIONS WITH REGARD TO THE ASSETS, AND BUYER ACCEPTS THE ASSETS "AS IS, WHERE IS," WITH ALL FAULTS. Nothing contained in this Bill of Sale, express or implied, is intended to confer upon any Person not a party to the Purchase Agreement any rights or remedies of any nature whatsoever under or by reason of this Bill of Sale or the Purchase Agreement or EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 4 7BSB76.1OJSP3/13144/Q1 011091 905 any document, instrument, or Agreement referenced therein or executed and delivered pursuant to the terms of the Purchase Agreement. IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of the Effective Date. SELLER: CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR ATTEST: JENNIFER WALTERS CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY By: EXHIBIT 1.5 TO ASSET PURCHASE AGREEMENT - Bill of Sale - Page 5 785B76.10/SP3/13144/0101/091905 Exhibit "A" to Bill of Sale Route Match Software Description RouteMatch Software. RouteMatch Software Version SR239C - 4 licensed users Contract No. CITDEN 152 Windows 2003 for PowerEdge 1800 Server Other Software Software to remain on four Dell Computers: Microsoft Windows XP, Microsoft Office 2000, Citrix Client and Real Player EXHIBIT "A" to Bill of Sale 785876.10/SP3/13144/0101/091905 , SCHEDULE 1.9 TO ASSET PURCHASE AGREEMENT Business Intellectual Property RouteMatch Software RouteMatch Software Version SR239C - 4 licensed users Contract No. CITDEN 152 Windows 2003 for PowerEdge 1800 Server Other Software Software to remain on four Dell Computers: Microsoft Windows XP, Microsoft Office 2000, Citrix Client and Real Player SCHEDULE 1.9 TO ASSET PURCHASE AGREEMENT Business Intellectual Property 787545.1/SP3/13144/0101/091605 '" .c Exhibit 1.16 to Asset Purchase Agreement Equipment Description Vehicle Identification Number Ford Crown-Victory Ford Crown-Victory Concrete slabs for benches & shelters Eight Solar power light and Information Display Systems Bus Shellers Basic System and Inventory Module - Software Two Dell MFP 1600n Printers Two Dell Computers -Small Minltower Pentium Two Dell latitude Laptops Model 5400 Shop Floor Scrubber LINKS Bus Lifts (Hydraulic Repair Lifts) Ten Benches with Backrest Signs - LINK buses Signs - LINK buses logos & striping Signs - LINK buses decais TWD Panasonic Toughbook Computers Four Workstations One Dell Computer PowerEdge Network Switch Routematch Software HP Laser Printer HPB 150 HP Color Laser Printer HP4550 HP Scan Jet Scanner HP Fax 1020 Scan Coin Sorter Left Pedestal Desk Two File Cabinets Secretary Desk Secretary Desk Bookcase Chair Roadmaster Else Utility Vehicle (Taylor Dunn) Nortel Option 11 C Phone System and Cisco Switch with 10 Phone Desk Sets 2FALP71W4SX174474 2FALP71 W2VX15B262 Page: 1 , SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT' Shelters and Benches Passenger Am~ty LocationS' Lqcation CityBenel> City KDB B.enel> Sweat Team TINT Shelter Shelter L1NK central XXXX x:x: 100 Block ofE. ffickory Emily Fowler . .,:,.. Library. X It .~ - 500 Block of - Oakland Joyce & .. .. . G;rrdenveiw ! X , 3500 Block of Joyce Oriole & Loop ;.\. 288 j:7:: X 3600 Block of ., Onole Market & Loop -n 288 X 3800 Block of i Market Street Bell @Peach "'~i;;:. X 2400 Blcck of #. Bell Colorado @ Target ~i'i X 2300 Block of . -.-:~ , Colorado AvenueG@I- 35E (Sac-n- Save) : X 1000 Block of Avenue C Teasley@. Family DOWIE X 1500 Block of .' Teaslev ! Irvin@Denia ReDIeman Ctr. X '1000 Block of parvin Charlotte @ , Avenue G X 2500 Block of : Charlotte .. SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT- Shelters and Benches - Paqe 1 187316.1/SPJ/13144/01011091605 L r. -. ~ , Location City Bench City KDB Bench Sweat Team UNT Shelter Shelter Bomrie Brae & Charlotte X 2400 Block of Charlotte W. Hiclrory & Avenue C X 1700 Block of W. Hickory TINT Student Union : X 400 Block of AvcnueA W. Oak@ Carroll X 300 Block ofW. Oak Hickory@ Railroad X 600 Block ofE. , Hickory WIlson@MLK. Recreation Ctr. X 1300 Block of Wilson Ruddell @ E. Hickory X 300 Block of Ruddell Bomrie Brae @ Denton Cormnuoity Hospital X 200 Block of S. Bomrie Brae M]ngo @ Village East Apts. , X 1700 Block of M]ngo'Road Crescent @ Malone X 1400 Block of Crescent Road Elm @ Second X 1200 Block of Elm Street , , SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT- Shelters and Benches - Pace 2 787316.1/SP3/13144101011091605. '. " " " ,.'. Location City Bench City KDB Bench Sweat Tellll1 UNT Shelter Shelter DaIlaB Drive @ Smith X 300 Block of Dallas Drive Ruddell @ Phoenix Apts. X 300 Block of Ruddell Bell @ Senior , Center X 200 Block of Bell Avenue Total: 30 SCHEDULE 1.33 TO ASSET PURCHASE AGREEMENT- Shelters and Benches - Paqe 3 787316.1/SP3113144101011091605 ''- Exhibit 1.39 (a) to Asset Purchase Agreement Buses Description Vehicle License Unit Vehicle. Identification Number Number Number 845-952 8701 1 GF5CAFKXHD098862 845-954 8703 1GF5CAFKOHD098885 828-019 275 1N9RBABG92C084143 851-184 335 1N9EBABG63C084117 851-185 336 1N9EBABG43C084116 851-186 337 1 N9EBABG33C084124 851-182 330 1 FDXE45S23HA62793 853-172 331 1 FDXE45S43HA62794 806-442 197 4UZAACBV81CJ40370 806-211 199 4UZAACBV41CJ25767 806-441 196 1 FDWE35F21 HB00447 806-443 198 1 FDWE35F41 HB00448 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus ESCORT RE Propane 30ft Bus ESCORT RE Propane 30ft Bus ESCORT RE Propane 30ft Bus ESCORT RE Propane 30ft Bus CGII Propane 25ft Paralransit Bus CGII Propane 25ft Paratranslt Bus 2000 Goshen SENTRY Bus 2000 Goshen SENTRY Bus 2000 Goshen SENTRY Bus 2000 Goshen SENTRY Bus The following assets are not in working order: 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 845-953 845-955 845-956 845-957 8702 8704 9001 9002 1 GF5CAFK4HD098890 1 GF5CAFK3HD098864 1GF5CAFK6LD101006 1 GF5CAFK1 HD1 01 003 Page: 1 ,~. Exhibit 1.39 (b) to Asset Purchase Agreement Other Buses Description 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 License. Number. 879-212 879-213 879-214 879-215 879-216 879-217 879-218 879-219 879-220 879-221 879-222 879-223 879-224 879-225 879-226 Page: 1 Vehicle Unit Number 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 Vehicle Identification Number 4UZAACBV21 CH72803 4UZMCBV91 CH72801 4UZMCBV31 CH72809 4UZAACBV81 CH72806 4UZAACBV81CH72823 4UZAACBV91 CH72815 4UZAACBV91 CH72832 4UZAACBVX1 CH72824 4UZAACBVX1CH72838 4UZMCBV91CH72846 4UZAACBV01 CH72833 4UZAACBV91CH72829 4UZAACBV11 CH72839 4UZAACBV81CH72840 4UZAACBVX1CH72841 '- SCHEDULE 5.6 TO ASSET PURCHASE AGREEMENT Contracts Agreement to Provide Management and Operation Services for Passenger Motor Carrier Transit System dated April 16, 2002 (as amended) between City of Denton, Texas and McDonald Transit Associates, Inc. SCHEDULE 5.6 TO ASSET PURCHASE AGREEMENT Contracts 787546.1/SP3!1314410101/091505 , ESCROW AGREEMENT THIS AGREEMENT, made this 30th day of September, 2()05, among the City of Denton, Texas, a Texas municipal corporation and home rule city ("Seller"), the Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuant to Chapter 469, Tex. Transportation Code ("Buyer), American Escrow Company, a Texas corporation, having its principal place of business at 2626 Howell, 10th Floor, Dallas, Texas 75204, Attn: Carla Janousek, 214- 855-8879 (hereinafter referred to as "Escrow Agent"), WITNESSETH THAT: WHEREAS, the Seller and Buyer entered into that certain Asset Purchase Agreement (the "Purchase Agreement") dated September 30, 2005, wherein Seller agreed to sell the Buses (as defined in the Purchase Agreement) and certain other assets and agreed to convey and transfer the Other Buses (as defined in the Purchase Agreement), to Buyer described therein (collectively, the "Assets"); and WHEREAS, Seller has deposited the Titles (as defined in the Purchase Agreement) to the Vehicles with Escrow Agent. NOW THEREFORE, the parties hereto agrees as follows: Escrow Agent shall open and maintain an escrow account in the name of Buyer and Seller and hold in such account each of the Titles to the Vehicles listed on Exhibit "A" attached hereto and incorporated herein by reference for all purposes. Upon receipt by the Escrow Agent of an executed copy of the Statement of FTA Approval By the City of Denton, Texas, in the form of Exhibit "B" attached hereto and incorporated herein by reference for all purposes, by close of business on March 31, 2006, and the Statement of FTA Approval By the Denton County Transportation Authority, in the form of Exhibit "C" attached hereto and incorporated herein by reference for all purposes, Escrow Agent shall immediately deliver the Titles to the Buyer and, upon doing so, shall not have any further obligation hereunder. However, in the event the Escrow Agent does not receive an executed copy of Exhibit B and Exhibit C by close of business on March 31, 2006, Escrow Agent shall promptly deliver the Titles to the Seller and, upon doing so, shall not have any further obligation hereunder. Buyer shall pay the full cost of the escrow established with Escrow Agent. Escrow Agent is not a party to, or bound by any agreement which may be deposited under, evidenced by, or which arises out of the foregoing instructions. ESCROW AGREEMENT - Page 1 786BBO.7/SP3/13144/01 01/091905 ". Escrow Agent acts hereunder as a depository only and is not responsible or liable in any manner whatever for the sufficiency, correctness, genuineness or validity of any instrument deposited with it hereunder, or with respect to the form or execution of same; or the identity, authority, or rights of any person executing or depositing the same. The parties hereto further agree that Escrow Agent assumes no liability for and is expressly released from any claim or claims whatsoever in connection with the receiving, retaining and delivering of the above Titles except to account for delivery made thereof as required above. Deposit by Escrow Agent of the instruments comprising this escrow in Court, shall relieve Escrow Agent of all further responsibility and liability, and Escrow Agent is hereby expressly authorized to disregard in its sole discretion any and all notices or warnings given by any of the parties hereto, or by any other person or corporation, but the said Escrow Agent is hereby expressly authorized to regard and to comply with and obey any and all Orders, Judgments or Decrees entered or issued by any Court with or without jurisdiction, and in case Escrow Agent obeys or complies with any such Order, Judgment or Decree of any Court it shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such Order, Judgment or Decree be entered without jurisdiction or be subsequently reversed, modified, annulled, set aside or vacated. In case of any suit or proceeding regarding this escrow to which Escrow Agent is or may be at any time a party, it shall have a lien on the contents hereof for any and all cost, attorneys' fees, whether such attorneys shall be regularly retained or specially employed and other expenses which it may have incurred or become liable for on account thereof, and it shall be entitled to reimburse itself therefore out of said deposit, and the undersigned jointly and severally agree to indemnify and hold harmless Escrow Agent from all loss, costs or damages incurred, including but not limited to attorneys' fees, by reason of this Agreement or the subject matter hereof or any cause of action which may be filed in connection therewith and to pay Escrow Agent, upon demand all such costs, fees and expenses so incurred. Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, except its own gross negligence or willful misconduct, and Escrow Agent shall have no duties to anyone except those signing this instrument. Escrow Agent may consult with legal counsel in the event of any dispute or questions as to the construction of the foregoing instructions, or Escrow Agent's duties hereunder, and Escrow Agent shall incur no liability and shall be fully protected in acting in accordance with the opinion and instructions or such counsel. Escrow Agent shall not have any liability due to any of the parties, other than Escrow Agent, filing for bankruptcy or the consequences or effect of such a bankruptcy on the documents deposited hereunder. ESCROW AGREEMENT - Page 2 7B68BO.7/SP3!13144/0 1 01 {D9i90S o EXECUTED as of the day and year first above written. Seller: Buyer: The City of Denton 215 E. McKinney Denton, Texas 76201 Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 By: Name: Charles Emery Title: Chairman By: Name: Euline Brock Title: Mayor ATTEST: ATTEST: JENNIFER WALTERS CITY SECRETARY DENTON COUNTY TRANSPORTATION AUTHORITY By: By: Jason Pearce, Secretary APPROVED AS TO LEGAL FORM: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY ~ ~/ B, ~~ By: RIDER SCOTT, GENERAL COUNSEL Escrow Agent , Escrow Agent herein, hereby acknowledges receipt of the aforementioned Titles and agrees to act as Escrow Agent herein pursuant to the terms of this Agreement, dated this day of , 2005. Escrow Agent: BY: NAME: TITLE: ESCROW AGREEMENT - Page 3 7B5BBD. 7 /SP3/131441D1 01/091905 '. Description EXHIBIT A to Escrow Agreement 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus ESCORT RE Propane 30ft Bus ESCORT RE Propane 30ft Bus ESCORT RE P'opane 30ft Bus ESCORT Rc, r.ropane 30ft Bus CGII propane 25ft Paralransit Bus CGII Propane 25ft Parelransit Bus 2000 Goshen SENTRY Bus 2000 Goshen SENTRY Bus 2000 Go:"hen SENTRY Bus 2000 Goshen SENTRY Bus 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 1987 Flxible Diesel Bus 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 License Number 845-952 845-954 828-019 851-184 851-185 851-188 851-182 853-172 806-442 806-211 806-441 806-443 845-953 845-955 845-956 845-957 879-212 879-213 879-214 879-215 879-216 879-217 879-218 879-219 879-220 879-221 879-222 879-223 879-224 879-225 879-226 Vehicle Unit Number 8701 8703 275 335 336 337 330 331 197 199 196 198 542 543 544 545 546 547 548 549 55p 551 552 553 554 555 556 Vehicle Identification Number 1GF5CAFKXHD098862 1 GF5CAFKOHD098885 1 N9RBABG92C084143 1N9EBABG63C084117 1 N9EBABG43C084116 1 N9EBABG33C084124 1FDXE45S23HA62793 1FDXE45S43HA62794 4U2PJ\CBV81CJ40370 . 4U2PJ\CBV41 CJ25767 1 FDVVE35F21HB00447 1 FDVVE35F41 HB00448 8702 8704 9001 9002 1 GF5CAFK4HD098890 1 GF5CAFK3HD098864 1 GF5CAFK6LD1 01 006 1 GF5CAFK1 HD1 01 003 4U2PJ\CBV21CH72803 4U2PJ\CBV91 CH72801 4U2PJ\CBV31 CH72809 4UZAACBV81 CH72806 4UZAACBV81CH72823 4UZAACBV91CH72815 4UZAACBV91 CH72832 4UZAACBVX1 CH72824 4UZAACBVX1 CH72838 4UZAACBV91 CH72846 4UZAACBV01CH72833 4UZAACBV91 CH72829 4UZAACBV11 CH72839 4UZAACBV81 CH72840 4UZAACBVX1 CH72841 ., Exhibit B to Escrow Aqreement STATEMENT OF FTA APPROVAL BY CITY OF DENTON. TEXAS I, of the City of Denton, Texas do hereby swear and affirm that the City of Denton, Texas has received the approval of the FT A to transfer the Vehicles (as defined in the Asset Purchase Agreement between the City of Denton, Texas and the Denton County Transportation Authority dated September 3D, 2005) to the Denton County Transportation Authority. THIS statement is made to (escrow agent) to complete the transaction contemplated in the Asset Purchase Agreement, and does hereby swear under the penalties of perjury that the foregoing information is true and correct in all respects, and that is authorized to make this statement on behalf of the City of Denton, Texas. EXECUTED effective as of _,20_. By: Name: Title: COUNTY OF DENTON s s s STATE OF TEXAS SWORN TO AND SUBSCRIBED BEFORE ME on , in his capacity as' _, 2005, by of the City of Denton, Texas. Notary Public, State of Notary's printed name: My commission expires: 786880. 7!SP3113144/01 0 1/091 905 '. Exhibit C to Escrow AQreement STATEMENT OF FT A APPROVAL BY DENTON COUNTY TRANSPORTATION AUTHORITY I, of the Denton County Transportation Authority do hereby swear and affirm that the Denton County Transportation Authority has received the approval of the FTA to transfer the Vehicles (as defined in the Asset Purchase Agreement between the City of Denton, Texas and the Denton County Transportation Authority dated September 30, 2005) to the Denton County Transportation Authority. THIS statement is made to (escrow agent) to complete the transaction contemplated in the Asset Purchase Agreement, and does hereby swear under the penalties of perjury that the foregoing information is true and correct in all respects, and that is authorized to make this statement on behalf of the Denton County Transportation Authority. EXECUTED effective as of ,20_. By: Name: Title: COUNTY OF DENTON s s s STATE OF TEXAS SWORN TO AND SUBSCRIBED BEFORE ME on , in his capacity as Transportation Authority. _, 2005, by of the Denton County Notary Public, State of Notary's printed name: My commission expires: 786880. 7/SP3!13144101 011091 905 " USE AGREEMENT. This Use Agreement ("Agreement") is entered into as of September. 30, 2005, by and between the CITY OF DENTON, TEXAS, a Texas municipal Corporation and home rule' city ("Seller") and the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Buyer"). WIT N E SSE T H: WHEREAS, Buyer and Seller entered into that certain Asset Purchase Agreement dated as of September 30, 2005 (the "Purchase Agreement") providing, among other things, for the sale by Seller to Buyer of the Assets (as defined in the Purchase Agreement); and WHEREAS, in order to effectuate the orderly transition of the Business (as defined in the Purchase Agreement) and complete the transaction set forth in the Purchase Agreement Buyer and Seller have agreed to execute this Agreement; NOW THEREFORE, in consideration of the premises, the consideration paid pursuant to the Purchase Agreement, the mutual covenants and agreements contained in the Purchase Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, to the extent there is Business Intellectual Property (as defined in the Purchase Agreement) owned, licensed to or otherwise utilized by Seller, Seller grants Buyer unlimited access to and use of the same for purposes of operating the Business, including without limitation the intra-city bus line under the name "LINK" in the City of Denton, Texas to the extent Seller is permitted to do so by contract or law. SELLER: CiTY OF DENTON, TEXAS, a Texas municipal- corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR USE AGREEMENT - Page 1 766902.3/SP3(13144/0 1 01/091905 1 ATTEST: JENNIFER WALTERS CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY By: STATE OF TEXAS ~ ~ COUNTY OF DENTON ~ This instrument was acknowledged before me on the _ day of September, 2005, by Euline Brock, Mayor of the City of Denton, Texas, known or proved to me on satisfactory evidence to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed and in the capacity therein stated, on behalf of such municipal corporation. [SEAL] Notary Public, State of Texas My Commission Expires: USE AGREEMENT - Page 2 7B6902.3/SP3/13144/01 01 f091905 2 c OTHER BUS TRANSFER INSTRUMENT THIS OTHER BUS TRANSFER INSTRUMENT ("Instrument") is made as of September 30, 2005, by the CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city ("Seller"). WIT N E SSE T H: WHEREAS, the DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision and coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Buyer") and Seller entered into that certain Asset Purchase Agreement dated as of September 30, 2005 (the "Purchase Agreement") providing, among other things, for the transfer of the other Buses (as defined in the Purchase Agreement) (as identified on Exhibit A attached hereto and incorporated by reference for all purposes) by Seller to Buyer; and WHEREAS, in order to effectuate the transfer of the other Buses as aforesaid, Seller is executing and delivering this Instrument; NOW THEREFORE, in accordance with the mutual covenants and agreements contained in the Purchase Agreement, Seller hereby CONVEYS AND TRANSFERS, SETS OVER AND DELIVERS, and has hereby CONVEYED, ASSIGNE;D, TRANSFERRED, SET OYER AND DELIVERED to Buyer, its successors and assigns, all of its right, title, and interest in and to and under all of the Other Buses. Seller and its successors and assigns, further covenants and agrees that Seller will do or cause to be done all such further acts and things and will execute, acknowiedge and deliver, or will cause to be executed, acknowledged and delivered, any and all such further transfers, conveyances, instruments, powers of attorney and assurances as the Buyer may reasonably require for the better assuring, assigning, OTHER BUS TRANSFER INSTRUMENT - Page 1 7 87225.2/SP3J13144/01 011091905 o transferring and conveying to the Buyer, its successors and assigns, on the terms. stated in the Purchase Agreement and herein, all and singular the Other Buses. THIS AGREEMENT SHALL BE CONTROLLED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE WITHOUT APPLICATION OF CONFLICTS OF LAW PROVISIONS AND IS IN ALL RESPECTS PERFORMABLE IN DENTON COUNTY, TEXAS. SELLER MAKES NO REPRESENTATIONS WITH REGARD TO THE OTHER BUSES, AND BUYER ACCEPTS THE OTHER BUSES "AS IS, WHERE IS," WITH ALL FAULTS. Nothing contained in this Instrument, express or implied, is intended to confer upon any Person not a party to the Purchase Agreement any rights or remedies of any nature whatsoever under or by reason of.this Instrument or the Purchase Agreement or any document, instrument, or Agreement referenced therein or executed and delivered pursuant to the tenms of the Purchase Agreement. IN WITNESS WHEREOF, Seller has executed this Instrument as of the Effective Date. SELLER: CITY OF DENTON, TEXAS, a Texas municipal corporation and home rule city By: HONORABLE EULlNE BROCK MAYOR OTHER BUS TRANSFER INSTRUMENT - Page 2 787225.2JSP3/13144/0101/091905 ATTEST: JENNIFER WALTERS CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY By rdAl/q OTHER BUS TRANSFER INSTRUMENT - Page 3 7B7225.21SP3/13144/01 01 fOg 1905 >, Description Exhibit "A" to other Bus Transfer Instrument 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 2001 Champion Bus CT300 other Buses >> License Number 679-212 679-213 679-214 679-215 679-216 679-217 679-216 679-219 679-220 879-221 679-222 > 679-223 679-224 879-225 679-228 Exhibit U AU to other Bus Transfer Instrument 787225.21SP3J13144/01 01/091 G05 Page: 1 Vehicle Unit Number 542 543 544 545 546 547 546 549 550 551 552 553 554 555 556 Vehicle Identification Number 4UZAACBV21CH72803 4UZAACBV91CH72801 4UZAACBV31CH72809 4UZAACBV61 CH72806 4UZAACBV61CH72823 4UZAACBV91 CH72615 4UZAACBV91CH72832 4UZAACBVX1CH72624 4UZAACBVX1 CH72638 4UZAACBV91 CH72646 4UZAACBV01CH72833 4UZAACBV91 CH72629 4UZAACBV11 CH72839 4UZAACBV61 CH72640 4UZAACBVX1 CH72641 S:\Our Documents\Co11lracts\05\McDonald TransiLdoc ASSIGNMENT OF THAT CERTAIN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND MCDONALD TRANSIT ASSOCIATES, INC. DATED APRIL 16, 2002, AS AMENDED DATE: September 20, 2005 ASSIGNOR: The City of Denton, Texas, a Texas Municipal Corporation and home rule city. ASSIGNEE: The Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code. CONSENTING CONTRACTOR: McDonald Transit Associates, Inc., a Texas Corporation Reference: Agreement to provide services for the City of Denton's passenger motor carrier transit system called LINK. April 16, 2002, amended on several occasions, the last amendment being on Jnne 15, 2004. City of Denton, Texas and McDonald Transit Associates, Inc. The Agreement described herein shall hereinafter be referred to as the Agreement. AGREEMENT: Type: Date: Parties: 1. Assignor assigns' to Assignee all Assignor's rights, obligations and interest ill the Agreement. 2. Assignee Agrees to: a. Assume Assignor's rights, obligations and interests under the Agreement. b. Fully perform all Assignor's. obligations under the Agreement's terms and conditions. IN WITNESS WHEREOF, the parties have execnted this Assignment of that certain Agreement between the City of Denton, Texas and McDonald Transit Associates, dated April 16, 2002, as amended, as of the _ day of September, 2005, which shall be the effective date. PREVIOUS ASSIGNMENTS: None For Assi gnor: City of Denton, Texas 215 E. McKimley Denton, Texas 76201 By: Euline Brock, Mayor S:\Our DoClImenlS\Contr:J.Cls\05\McDonnld Tr:J.nsit.doc Attest: Jennifer Walters, City Secretary By: Approved as to Legal Form: :~;;;]IlJtA~mc' For Assignee: Denton County Transportation Authority 1660 South Stenmlons, Suite 250 Lewisville, Texas 75067 By: Charles Emery, Chairman Attest: Denton County Transportation Authority By: Jason Pearce, Secretary Approved as to Legal Form By: Rider Scott, General Counsel For Consenting Contractor: McDonald Transit Associates, Inc. 4500 Mercantile Plaza Drive, Suite 307 Fort WDlih, Texas 76137 By: Robeli T. Babbitt, President . S:\Our DOCllmE:nts\Contracts\05\McDonald Tnmsit.doc STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the _ day of 2005, by Euline Brock, Mayor of the City of Denton, Texas, a Texas mllllicipal corporation, on behalf of said Municipal Corporation. [SEAL] Notary Public, State of Texas My Commission Expires (or Notary Stamp) STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the _ day of 2005, by Charles Emery, Chairman of the Denton County Transportation Authority, a Texas political subdivision and a coordinated County Transportation Authority created by Chapter 460, Texas Transportation Code, on behalf of said Political Subdivision. [SEAL] Notary Pnblic, State of Texas My Commission Expires (or Notary Stamp) STATE OF TEXAS COUNTY OF DENTON This instrument was aclmowledged before me on the _ day of 2005, by Robert T. Babbitt, President of McDonald Transit Associates, Inc., a Texas corporation, on behalf of said Corporation. [SEAL] Notary Public, State of Texas My Commission Expires (or Notary Stamp) . n~~~') ~~") HANDOUT TO COUNCIL q \2--0\ 06' :trim ~S"5 THE STATE OF TEXAS s AN AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TX. AND THE DENTON COUNTY TRANSPORTATION AUTHORITY COUNTY OF DENTON S MASTER LEASE AGREEMENT This Master Lease Agreement ("Lease") is entered into by and between the City of Denton, Texas, a Texas municipal corporation and home rule city ("Lessor") and the Denton County Transportation Authority, a political subdivision and a coordinated county transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Lessee") on this 30th day of September, 2005, in accordance with the terms and conditions of that certain Asset Purchase Agreement of even date herewith ("Purchase Agreement") by and between Lessor and Lessee as Seller and Buyer, respectively, which contemplated that the Lessor and Lessee would enter into this Master Lease Agreement. Subject to the terms and conditions of this Lease, and in consideration of mutual covenants, obligations, and agreements contained in this Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Lessee each agree as follows (all capitalized terms herein shall be defined herein as stated in the Purchase Agreement unless otherwise defined herein): Article 1 LEASE PREMISES 1.1 Lease Premises. Lessor does hereby lease, demise, and let to Lessee and Lessee does hereby lease and take from Lessor certain premises situated within the City of Denton, State of Texas, being more particularly described as follows: (a) that .428 acres which is legally described on Exhibit "A," attached hereto and incorporated herein by reference for all purposes, and the improvements thereon ("Tract I") including, without limitation, an approximately 3000 square foot building (commonly known herein as the "Service Bay Building") which contains three (3) vehicle maintenance and repair bays, and permanently attached to the exterior of the Service Bay Building is a vehicle washrack; (b) 'that .519 acres which is legally described on Exhibit "B," attached hereto and incorporated herein by reference for all purposes, and the improvements thereon ("Tract II") (commonly known herein as the "Bus Parking Area") on which Lessee's Vehicles (as defined in the Agreement) are to be parked or stored; (c) that .201 acres which is legally described on Exhibit "C," attached hereto and incorporated herein by reference for all purposes, and MASTER LEASE AGREEMENT - PAGE 1 784815.14/SP3/13144!0100/092005 the improvements thereon ("Tract I"") and on which is located (i) a triple-wide modular building (Serial Numbers TXLAOK998437, TXLAOK008290 and TXLAOK008281) ("Bus Admin Office"), which Lessor now leases from General Electric Capital Modular Space, a division of Transport International Pool, Inc. ("GECMS") and shall continue to do same during the Term (as defined below) of this Lease and which Lessor shall sublet to Lessee as is provided hereinbelow, and (ii) a 10,000 gallon fuel tank owned by Lessor and located adjacent to Service Bay Building, of which Lessee shall have exclusive use to store fuel for Lessee's Vehicles during the Term (with each of the foregoing tracts and the improvements thereon being collectively called herein the "Premises"). Together with all rights, privileges, easements, appurtenances, and amenities belonging to, or in any way pertaining to, the said Premises, including full rights of ingress and egress to said Premises. 1.2 Condition. Lessee hereby accepts the Premises and the other improvements and fixtures thereon "AS IS, WHERE IS," and agrees that the Seller is not making any warranties regarding the condition or suitability for intended use of the. Premises or the other improvements and fixtures thereon. Article 2 TERM 2.1 Initial Term. The initial term of this Lease shall be for thirty-six (36) months, beginning on October 1, 2005 ("Commencement Date") and ending on September 30, 2008 ("Expiration Date") ("Initial Term"). 2.2 Extensions. The Initial Term may be extended for up to two (2) successive one (1) year periods (with each of such extension periods being called herein an "Extension Period") upon Lessee providing written notice to Lessor in accordance with Article 13 below not less than sixty (60) days prior to (i) the Expiration Date, if applicable, or (ii) the last day of the applicable Extension Term. During any Extension Period hereunder, the terms and conditions of this Lease shall remain unchanged and continue to be effective and in full force, subject to the change in monthly rental provided below or any written agreement otherwise entered into between Lessor and Lessee (with the Initial Term and the applicable Extension Periods being collectively known as the "Term"). Article 3 RENT 3.1 Rental in Initial Term. On or before the first day of each month during the Initial Term (beginning on the Commencement Date), Lessee shall pay to Lessor the sum of Nine Thousand Four Hundred Eighteen Dollars ($9,418) per month. MASTER LEASE AGREEMENT - PAGE 2 784815.14/SP3/13144f01001092005 3.2 Rental in Extension Terms. If Lessee exercises its right to extend the Initial Term of this Lease in accordance with Section 2.2 above, on or before the first day of each month (beginning on or before the first day of the applicable Extension Period (which shall be October 1,2009 or October 1,2010, respectively)), Lessee shall pay to Lessor the sum of Five Thousand Three Hundred Dollars ($5,300) per month. 3.3 Place of Pavment. Lessee shall pay all amounts due under this Lease to: City of Denton c/o Director of Solid Waste Solid Waste Fund 1527 South Mayhill Road Denton, Texas 76208 or at such other address of which Lessor shall provide notice to Lessor in accordance with Article 13 below. 3.4 Holdinq Over. The Term of this Lease (including the Initial Term and each Extension Term if exercised as provided herein) shall expire no later than September 30,2010. However, if the Lessee does not vacate the Premises upon the expiration of the Term, the Lessee's occupancy of the Premises shall be a month-to- month tenancy, subject to all of the terms of the Lease applicable to a month-to-month tenancy, except that the monthly rental during such tenancy shall be Nine Thousand Five Hundred Dollars ($9,500) per month and shall be due and payable beginning on October 1,2010 and shall be due and payable thereafter on the first day of each month until such tenancy terminates; however, if such tenancy ends on a day other than the last calendar day of the month, the rental for any fractional calendar month of the tenancy shall be prorated by days. 3.5 Earlv Termination. Should the Lease be terminated prior to the Expiration Date of the Initial Term for any reason whatsoever, Lessee covenants to pay to Lessor within sixty (60) days of such date of termination the sum of One Hundred Forty-Eight Thousand Two Hundred Forty-Eight Dollars ($148,248.00) minus the sum obtained by multiplying Four Thousand One Hundred Eighteen Dollars ($4,118.00) times the number of whole months which have expired since the Commencement Date. Such payment shall be made in lieu of any other remedy under this Lease or in equity. 3.6 Late Fee. If at any time Lessee's rental payment due hereunder is past due for thirty (30) or more days, Lessee shall pay Lessor a Late Fee of One Hundred Fifty Dollars ($150.00). Article 4 LESSOR'S TITLE 4.1 Lessor's Title. Lessor covenants and warrants that it has good and marketable title to the Premises, plus all other real estate shown on Exhibit D, including, without limitation, all means and ways of ingress and egress for the same. Lessor holds the Premises and all other real estate shown on Exhibit D in fee-simple absolute, free MASTER LEASE AGREEMENT - PAGE 3 7848 15.14/SP3/13144/0 1 00/09200 5 and clear from any lien, claim or encumbrance that would affect the use and enjoyment of the Premises by the Lessee. 4.2 Lessor's Authoritv. Lessor has full right, power and authority to enter into this Lease and to grant to Lessee the leasehold estate contemplated herein and all rights purported to be herein granted. Article 5 USE AND ENJOYMENT 5.1 Permitted Use. Lessee shall use the Premises as follows: (a) Tract I, including the (i) Service Bay Building and the three (3) vehicle maintenance repair bays contained therein, shall be utilized by Lessee to repair and maintain the Vehicles and any vehicle that Lessee may own, rent, lease or use in the future and Lessor and Lessee shall share the operations and use of the vehicle wash rack permanently attached to the exterior of the Service Bay Building; and (ii) a 10,000 gallon fuel tank which is owned free and clear of any encumbrance, lien or restriction by Lessor and during the entirety of the Term of this Lease shall be exclusively used by Lessee to store fuel for Lessee's Vehicles (with the uses of Tracts I, II and III of the Premises being collectively known herein as the "Use"); (b) Tract II, including the paved Bus Parking Area thereon shall be utilized for the parking and storage of the Buses and any other vehicle that Lessee may own, rent, lease or use in the future; and (c) Tract III is the location of (i) the Bus Admin Office which is a triple- wide modular building that shall be used by Lessee as the administrative office for the operation of the intra-city bus line in the City of Denton, Texas (commonly known as "LINK"); AND AS A CONDITION TO LESSEE AGREEING TO ENTER INTO THE PURCHASE AGREEMENT AND THIS LEASE, LESSOR AGREES TO SEEK WRITTEN APPROVAL OF GECMS TO ENTER INTO A SUBLET AGREEMENT SIMULTANEOUSLY WITH LESSOR AND LESSEE EXECUTING AND DELIVERING THIS LEASE, WHEREBY LESSEE SHALL SUBLET FROM LESSOR THAT BUS ADMIN OFFICE DURING THE TERM OF THIS LEASE ON THE SAME TERMS AND CONDITIONS AS LESSOR SHALL CONTINUE TO LEASE THAT BUS ADMIN I OFFICE FROM GECMS, THE OWNER OF THE BUS ADMIN OFFICE, DURING THE ENTIRETY OF THE TERM AND SUCH SUBLET AGREEMENT SHALL BE COTERMINUS WITH THIS LEASE; LESSOR SHALL SIGN AND DELIVER TO LESSEE A MASTER LEASE AGREEMENT - PAGE 4 7848 15.14fSP3/13144/0 1 00/09200 5 SUBLET AGREEMENT AT CLOSING, CONSISTENT WITH THE TERMS HEREIN; AND Lessor further covenants and warrants that there are no restrictive covenants, ' zoning ordinances or other laws, regulations or ordinances (federal, state or local) which will at any time prevent Lessee, or its officers, employees, customers, invitees, contractors, guests or agents, from conducting the Use or otherwise conducting the full and complete operation and functioning of the intra-city bus system commonly known as "LINK" in the City of Denton, Texas, including, without limitation, conducting the parking, operation, maintenance, repair and administration of Lessee's Vehicles within the Premises in a manner reasonably determined by the Lessee. If at any time during the term of this Lease, the Use of the Premises for such described purposes, including the Use of the Bus Parking Area for vehicular driving or parking, should ever be prohibited or prevented by any restriction, ordinance, law, regulation, decision, or otherwise, Lessee shall have the right at any time thereafter to terminate this Lease by giving thirty (30) days written notice to the Lessor in accordance with Article 13 below, whereupon Lessee shall be immediately released from any further obligations of any kind which would otherwise accrue hereunder upon Lessee except as is provided in Section 3.5 hereof. In connection with the Use of and the related activities in, upon, and about the Premises, Lessee shall materially comply with all federal, state or local laws, statutes, ordinances, permits, regulations, applicable to the Use. 5.2 Peaceful Enjovment. Lessor covenants that Lessee shall and may peacefully have, hold, and enjoy the Premises for the Initial Term and any applicable Extension Period(s), including specifically, having an unrestricted ingress and egress from Mayhill Road in the City of Denton, Texas, into and out of the Premises for the Use herein specified. 5.3 Remedy. Lessor agrees that any use of the Premises by a third-party inconsistent with the terms and conditions of this Lease, shall be prohibited by Lessor upon notice being provided by Lessee to Lessor in accordance with Article 13 below. In particular, an obstruction, improvement, fixture, vehicle, structure, or any other impediment in or on the Premises, or in the ingress or egress access corridors, or adjacent areas shown on Exhibit D, that impairs, disrupts or limits in any manner the Use of the Premises, shall immediately be removed or cured by action of the Lessor upon receipt of written notice from the Lessee in accordance with Article 13 below. Lessor shall maintain whatever signage or notice is necessary to prevent said limitation or impairment of the Use of the Premises by the Lessee and to enforce and effect the removal of said limitation or impairment. Article 6 MAINTENANCE 6.1 Lessor's Repairs. Lessor shall, at its expense, maintain at all times the paved surface condition of the Bus Parking Area of the Premises, including the access MASTER LEASE AGREEMENT - PAGE 5 784815.14fS P 3/13144/0 1 00/09200 5 lanes for ingress and egress in and to the Premises and the other real estate shown on Exhibit D, in good operable repair and condition. Upon receipt of written notice by Lessee to Lessor provided in accordance with Article 13 below of any defect or need for repairs of items to be maintained hereunder by Lessor (including, without limitation, repairing the surface of the Bus Parking Area) Lessor shall commence repair of same within thirty (30) business days after receipt of such notice and diligently pursue such repairs to timely completion. However, if a condition for which Lessor is responsible, prevents Lessee from the defined Use of the Premises, Lessee shall be released from any obligation under the Lease, including the obligation to pay any rental from the day such condition commenced until Use of the Premises is restored in the reasonable opinion of the Lessee. Further, if such condition persists for more than thirty (30) days, then Lessee may terminate this Lease in all respects by five (5) days written notice provided in accordance with Article 13 below to Lessor and thereafter Lessee shall have no further obligation of any kind or nature under this Lease, except as provided in Section 3.5 hereof. 6.2 Other Repairs of the Premises. Except as provided in Section 6.1 above or otherwise herein, Lessee shall make, at Lessee's sole cost and expense, all necessary repairs to the Premises as required to maintain the property in good working order. At reasonable intervals during the hours of 8:00 A.M. to 5:00 P.M. of each Business Day, Lessor shall have the right to conduct periodic maintenance inspections for the purpose of confirming that Lessee's obligations under this provision are performed. 6.3. Alterations and Improvements. Lessee, at Lessee's sole cost and expense, may remodel, redecorate, and make additions, improvements and replacements of, and to all or any part of the Premises except the Bus Admin Office from time to time during the Term, as Lessee may deem desirable (including the right to place and install personal property, trade fixtures, equipment and other temporary installations in and upon the Premises including the Bus Admin Office), provided that such is made or done in a workmanlike manner and that good quality materials are used. All personal property, equipment, machinery, trade fixtures and temporary installations placed or installed upon the Premises by Lessee during the Term shall remain Lessee's property, free and clear of any claim by Lessor, and Lessee shall have the right to remove the same at any time during the Term of this Lease; provided however, that all damage to the Premises caused by any such removal shall be fully repaired by Lessee, at Lessee's expense and shall be done to Lessor's reasonable satisfaction. Article 7 TAXES, INSURANCE, UTILITIES AND SIGNS 7.1 Propertv Taxes. Lessor covenants and warrants that the Premises is exempt from general real estate taxes of any and all taxing authorities (federal, state or MASTER LEASE AGREEMENT - PAGE 6 784815.14fSP3f13144/0100/092005 local). Lessee shall be liable for, and solely responsible for, paying all personal property taxes with respect to Lessee's personal property located on or stored at the Premises. 7.2 Insurance. A. Lessor shall maintain "all perils" insurance coverage (including fire and extended coverage insurance) for the Premises in such amounts as Lessor shall deem reasonable in relation to the age, location, type of construction and physical condition of the Premises. However, Lessee shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in or at the Premises. Lessee understands and agrees that Lessor shall in no way be liable respecting Lessee's personal property located on the Premises unless the damage occurred from an act or negligence of Lessor or any of Lessor's officials, officers, employees, guests, agents or invitees. B. Lessee and Lessor shall each, at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities of each on the Premises or on the other real estate reflected on Exhibit D, with the premiums thereon fully paid on or before their due date, issued by and binding upon an insurance company licensed in the State of Texas and rated "A-" or higher by A.M. Best Carriers. Each such policy shall be issued for insurance coverage for an amount of not less than One Million Dollars ($1,000,000) combined single-limit coverage of bodily injury, property damage or a combination thereof. Lessor or Lessee (as applicable) shall be listed as an additional insured on the other party's policy or policies of comprehensive general liability insurance and Lessor and Lessee (as applicable) shall provide the other party with current certificates of insurance evidencing its compliance with this Section. Lessee shall obtain the agreement of Lessee's insurers to notify Lessor that the insurance policy required hereunder is due to expire at least thirty (30) days prior to such expiration. Lessor shall assume no liability for and shall not be required to maintain insurance against thefts within or upon the Premises. The risk of loss for theft within or upon the Premises shall be borne solely by Lessee. . 7.3 Utilities. Lessor covenants and warrants that all solid waste, sewer water, gas, potable water, electricity and all other necessary utilities are in all respects available for, and are now fully and completely connected to, the Premises. However, all applications and connections for necessary utility services on or to the Premises shall be made in the name of Lessee only; and Lessee shall be solely liable for, and shall maintain in current status, any and all utility charges as they become due, including those charges for solid waste, sewer, water, gas, potable water, electricity and charges for any other utilities. Lessor acknowledges that telephone, data and internet services are necessary utilities for Lessee, and therefore Lessor shall affirmatively act and cooperate, in all aspects, to assure their timely connection to the Premises. MASTER LEASE AGREEMENT - PAGE 7 784815.141SP3113144f0100/092005 Lessor shall separately invoice Lessee on an annual basis for the use by Lessee of the ADT fire alarm system monitoring service located in and on the Service Bay Building and Lessee shall pay such invoice to Lessor no later than twenty-one (21) days after the date of Lessor's invoice. 7.4 Siqns. Lessee shall have the right to place on the Premises, at locations selected by Lessee, any signs which are permitted by applicable zoning ordinances and private restrictions which are subject to the prior written reasonable approval of Lessor, which approval will not be unreasonably withheld. Lessor may refuse to consent to any proposed signage that is, in Lessor's opinion, too large, or deceptive, or unattractive or otherwise inconsistent with, or inappropriate to the Premises, but Lessor's consent to Lessee's desired signage will not be unreasonably withheld. Lessor shall assist and cooperate with Lessee in obtaining any necessary permission from all governmental authorities or adjoining owners and occupants of the Premises or the other real estate shown on Exhibit D, for Lessee to place or construct the foregoing signs. Lessee shall repair all damage to the Premises resulting from the removal of all signs installed by Lessee. Article 8 PREMISES RETURN 8.1 Premises Return. Lessee agrees to return the Premises at the conclusion of the Term or upon earlier termination, in a condition reasonably similar to that in which Lessee received said Premises, save and except for ordinary wear and tear. Article 9 ASSIGNMENT 9.1 Assiqnment. Lessor and Lessee each agree it will not to assign its respective interest under this Lease; and Lessee agrees that it shall not sublet the Premises (or any portion thereof), without the prior consent of the Lessor. Article 10 RIGHT OF ACCESS 10.1 Grant of Riqht of Access. Lessor hereby grants to Lessee and its successors and assigns (together with their respective officers, employees, customers, visitors, guests, and invitees) a temporary non-exclusive right of access and use ("Right of Access") over and across all parts of the Premises and all other real property shown on Exhibit D including, without limitation, a right of access to the Premises from Foster Road (the "Access Area"). The Right of Access shall provide free, continuous and uninterrupted ingress, egress and regress by all pedestrians or vehicles to and from the Premises. The Lessor agrees not to interfere with or to construct, obstruct, place or permit to be placed any fences, barriers or other obstacles or impediments which will obstruct, MASTER LEASE AGREEMENT - PAGE 8 784815.14fSP3/13144/01001092005 hinder or limit in any respect passage of any pedestrian or vehicle to the Premises through the Access Area, including, without limitation, Foster Road. The Lessor agrees to keep the existing roadways and paths, including, without limitation, Foster Road (as shown on Exhibit D) in good working order, at its sole cost and expense. Lessor agrees to provide all necessary permanent or temporary easements, and rights of way, on, to, or through the Premises and the Lessor's property as depicted on Exhibit "0" to permit and allow the connection to the Premises of telephone, data and internet, or other utility services which are necessary for the use and enjoyment of the Premises. Upon the default of the Lessor to perform its obligations under this Right of Access, Lessee shall have the right to exercise any rights or remedies provided at law or in equity, including a claim for all court costs and recovery of reasonable attorneys' fees. 10.2 Covenants Runninq With the Land. The Access Area is an appurtenant. The obligations, benefits and burdens contained in this Agreement are those of the Lessees under this Lease, and shall run with the land, and shall be binding upon and inure to the benefit of said owners, tenants and mortgagees and their respective heirs, personal representatives, successors and assigns. If the Lessor or any future owner of the Premises or the other real property reflected on Exhibit 0 shall hereafter convey title to the Premises or the other real property reflected on Exhibit 0, such party's liability under this Lease for obligations performable after the date of such conveyance shall cease and such obligations shall be those of the record owner of the Premises or the other real property reflected on Exhibit 0 as of such time period. 10.3 Term. The term of the Right of Access shall coincide with the Term of the Lease. Article 11 DEFAULT AND REMEDY 11.1 Lessor. If Lessor fails to comply with any covenant or obligation of Lessor under this Lease, then Lessee shall give Lessor written notice provided in accordance with Article 13 below, specifying the nature of the default and Lessor shall then have 30 days in which to cure such default. (However, Lessor and Lessee agree that a default under the Purchase Agreement shall not be a default under this Lease.) If after the 30- day period of cure, the Lessor has not cured the default, then Lessee shall have the option to declare this Lease terminated in all respects and except for the obligation arising under Section 3.5, Lessee shall not have any other obligation of any kind or nature arising hereunder, but, without prejudice to the right of Lessee to recover from Lessor such damages as Lessee sustains as a result of said default including without limitation its reasonable attorney's fees and out of pocket costs. MASTER LEASE AGREEMENT - PAGE 9 784815.14/SP3f13144/0100/092005 11.2 Lessee. Should Lessee not comply with the payment of rent described herein, or any other provision of this Lease of which default Lessee shall then have thirty (30) days in which to cure such default after receipt of written notice provided in accordance with Article 13 below, specifying the nature of the defect, it shall be deemed a default under this Lease. (However, Lessor and Lessee agree that a default under the Purchase Agreement shall not be a default under this Lease.) Lessor shall have, in addition to the remedies provided within this Lease Agreement, all remedies allowed it by law and equity. Lessor shall use reasonable efforts to mitigate its damages. In the event of a breach of this Lease by Lessee, Lessor shall recover from Lessee its reasonable attorney fees and out-of-pocket costs. Article 12 ENVIRONMENTAL 12.1 Lessee's Environmental Liabilitv. Lessee shall comply with all material provisions of applicable environmental law, whether Federal, State, or local, respecting the Use of the Premises. Lessee shall fully disclose and contact David Dugger, Landfill Manager, City of Denton, Texas at (940) 349-8001, in the event that any hazardous materials are brought onto the Premises by or for the benefit of Lessee. Additionally, a material safety data sheet ("MSDS") shall be prepared by Lessee, and furnished to Lessor on the next business day after any hazardous materials are brought by Lessee or Lessee's agents onto the Premises. Lessee shall store all hazardous materials within the Service Bay Building in a safe manner. Lessee shall be solely responsible for the clean-up and remediation of any and all environmental liabilities which result from its use of the Premises. 12.2 Lessor's Representations and Warranties. Lessor represents and warrants to the best of Lessor's knowledge and belief that any handling, transportation, storage, treatment or usage of Hazardous Material that has occurred on the Premises to date has been in compliance with all applicable Federal, State, and local laws, regulations and ordinances. Except as disclosed on Schedule 12.2 attached hereto and incorporated herein by reference for all purposes, Lessor further represents and warrants to the best of Lessor's knowledge and belief that no leak, spill, release, discharge, emission or disposal of Hazardous Material has occurred on the Premises to date and that the soil or groundwater on or under the Premises is free of Hazardous Material as of the date that the term of this Lease commences unless expressly disclosed by Lessor to Lessee in writing. 12.3 Definitions. For purposes of this Article 12, the term "Hazardous Material" shall mean any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, or oil as defined in or pursuant to the Resource Conservation and Recovery Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Federal Clean Water Act, as amended, or any other federal, state or local; environmental law, regulation, ordinance, rule, or bylaw, whether existing as of the date hereof, previously enforced or subsequently enacted. MASTER LEASE AGREEMENT - PAGE 10 784815.14/SP3f13144f0100/092005 Article 13 NOTICE 13.1 Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by prepaid United States mail, certified, return receipt requested, addressed as follows: To Lessor: To Lessee: City of Denton, Texas Attn: City Manager 215 East McKinney Street Denton, Texas 76201 Denton County Transportation Authority c/o John O. Hedrick, Executive Director 1660 South Stemmons Lewisville, Texas 75057 Phone: (940) 349-8307 Fax: (940) 349-8596 And Phone: (972) 221-4600 Fax: (972) 221 4601 Vance Kemler, Director City of Denton, Texas Solid Waste Department 1527 South Mayhill Road Denton, Texas 76208 With a copy to: Strasburger & Price, LLP Attn: Rider Scott, Esq. 2801 Network Boulevard Suite 600 Frisco, Texas 75034 Phone: (940) 349-8044 Fax: (940) 349-8057 Phone: Fax: (469) 287 3906 (469) 227 6578 Lessor and Lessee shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. Article 14 WAIVER 14.1 Waiver. No failure of Lessor to enforce any term of this Lease shall be deemed to be a waiver. Article 15 HEADINGS 15.1 Headinqs. The headings and paragraph names used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease. MASTER LEASE AGREEMENT - PAGE 11 784815.14/SP3/13144f01001092005 Article 16 SUCCESSORS 16.1 Successors. The terms and provisions of this Lease shall extend to and be binding upon Lessor and Lessee and their respective legal representatives, officers, directors, successors and assigns. Article 17 CONSENT 17.1 Consent. Lessor shall not unreasonably withhold its consent with respect to any matter for which Lessor's consent is required under this Lease. Article 18 COMPLIANCE WITH LAW 18.1 Compliance with Law. This Lease shall be governed by, interpreted and enforced solely in accordance with the laws of the State of Texas. Venue of any cause of action arising hereunder shall lie exclusively in the courts of Denton County, Texas. Any provision hereof which is deemed or held legally void or unenforceable shall not void this entire Lease, and all other provisions of this Lease shall remain in full force and effect. Article 19 FEDERAL TRANSIT ADMINISTRATION REQUIREMENTS 19.1 Federal Transit Administration ("FT A") Requirements. Any federal, state and local interest in the Premises will remain with Lessor and will not be altered by this Lease. Both Lessor and Lessee agree to comply with the following Subsections of this Section during the Initial Term, as well as for any applicable Extension Period: A. Energy Conservation Requirements: Lessee agrees to comply with applicable mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plan issued in compliance with the Federal Energy Policy and Conservation Act. B. Federal Changes: Lessee shall at all times comply with all applicable FTA regulations, policies, procedures and directives, including, without limitation, those listed directly or by reference in the agreement between Lessor and FTA, as they may be amended or promulgated from time to time during the Lease. Lessee's failure to comply shall constitute a breach of this Lease. C. Lessee acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as amended, 31 USC SS3801 et seq.; and U.S. Department of Transportation Regulations entitled "Program Fraud Civil Remedies," 49 CF Part 31, apply to its Use of the Premises. MASTER LEASE AGREEMENT - PAGE 12 784815.14fSP3/13144/0 1 00/092005 D. All contractual provIsions required by U.S. Department of Transportation ("DOT") whether or not expressly set forth in this Lease, as set forth in FTA Circular 4220.1E, as amended, are hereby incorporated by reference. Anything to the contrary herein notwithstanding, all FTA mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this Lease. Lessee shall not perform any act, fail to perform any act, or refuse to comply with any requests, which would cause Lessor to be in violation of the FT A terms and conditions. Article 20 FINAL AGREEMENT 20.1 FINAL AGREEMENT. THIS LEASE SUPERSEDES ALL PRIOR UNDERSTANDINGS OR AGREEMENTS (ORAL OR WRITTEN) ON THE SUBJECT MATTER HEREOF. THIS LEASE CONTAINS THE ENTIRE AGREEMENT WITH RESPECT TO THE SUBJECT MATTER HEREOF. THERE ARE NO ORAL AGREEMENTS OF THE PARTIES RESPECTING THE SUBJECT MATTER OF THIS LEASE. THIS LEASE MAY BE AMENDED OR MODIFIED ONLY BY A FURTHER WRITTEN DOCUMENT THAT IS DULY EXECUTED AND DELIVERED BY BOTH PARTIES. Article 21 TIME OF ESSENCE 21.1 Time is of the essence with respect to this Lease. Article 22 COUNTERPARTS 22.1 This Lease may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but such counterparts shall together constitute one and the same instrument. [Remainder of Page Intentionally Left Blank-- Signatures Follow] MASTER LEASE AGREEMENT - PAGE 13 784815.14/$P3/13144/0100/092005 IN WITNESS WHEREOF, Lessor and Lessee, by and through their duly authorized signatories, have executed and delivered this Lease Agreement in four (4) original counterparts, as of the day and year first above written. LESSOR: LESSEE: City of Denton, Texas 215 E. McKinney Denton, Texas 76201 Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 By: By: HONORABLE EULlNE BROCK MAYOR CHARLES EMERY CHAIRMAN ATTEST: ATTEST: JENNIFER WALTERS CITY SECRETARY Denton County Transportation Authority By: By: JASON PEARCE SECRETARY APPROVED AS TO LEGAL FORM APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY By: RIDER SCOTT GENERAL COUNSEL By: MASTER LEASE AGREEMENT - PAGE 14 784815.14/SP3/13144/0100/092005 Schedule 12.2 Hazardous Material Violations MASTER LEASE AGREEMENT - PAGE 15 784815.14/SP3/13144/01001092005