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HomeMy WebLinkAboutNovember 15, 2005 Agenda AGENDA CITY OF DENTON CITY COUNCIL November 15, 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, November 15, 2005 at 4:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Hold a discussion and give staff direction regarding the 2006 Council meeting schedule. 2. Receive a report, hold a discussion and give staff direction regarding the Denton Public Art Policy Process. 3. Receive a report, hold a discussion and give staff direction on the funding of LEED certification for Fire Station #7. 4. Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of November 15, 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 - 1. Consultation with the City's attorneys regarding legal issues associated with annexation of real property in the City's northern ETJ, under annexation case no. A05-0002, along with other legal issues related to the annexation, including zoning, land use and subdivision controls, annexation plans, development agreements, annexation agreements, service plans, utility service, and legal issues implicated by alternative proposals advanced by individuals owning property within the proposed annexation area. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas or would jeopardize the City's legal position in any administrative proceedings or potential litigation. B. Deliberations regarding Real Property Under Texas Government Code Section 551.072 and Consultation with Attorney Under Texas Government Code Section 551.071. 1. Deliberate the purchase and value of real property interests for the proposed Downtown Multimodal Station and Catalyst Project and the City of Denton City Council Agenda November 15, 2005 Page 2 proposed South Transit Station in the MayhillBrinker Road area, which acquisitions are for public purposes. Receive legal advice from the City Attorney or his staff concerning legal issues regarding the acquisition and/or condemnation of such real property interests. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SE Q. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Following the completion of the Closed Meeting, the City Council will meet with Leadership Denton. Regular Meeting of the City of Denton City Council on Tuesday, November 15, 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. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards B. November Yard-of-the-Month Awards C. Recognition of staff accomplishments 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. City of Denton City Council Agenda November 15, 2005 Page 3 Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A — L). 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—L 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, Texas amending the provisions of Chapter 6, Section 18 regarding the adoption of dogs, cats, and ferrets; providing for a severability clause; providing a repealer clause; providing for a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. B. Consider adoption of an ordinance amending Ordinance No. 2001-338 to establish an adoption fee for dogs at one hundred twenty dollars ($120), an adoption fee for cats at one hundred and ten dollars ($110), and an adoption fee for ferrets at ten dollars ($10) pursuant to Chapter 6 of the code of ordinances of the City of Denton, Texas; providing that a schedule of fees shall be maintained on file in the office of the City Secretary; providing a savings clause; providing a severability clause; and providing an effective date. C. Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement with the firm of Southridge Animal Hospital to provide sterilization and rabies vaccination services for the City of Denton Animal Services Center; authorizing the collection of funds therefor as reflected in the fee ordinance; and providing an effective date. D. Consider adoption of an ordinance accepting competitive proposals and awarding a best value annual contract for operation of an automated traffic signal enforcement program; providing for the expenditure of funds therefor; and providing an effective date (RFP 3364—Automated Traffic Signal Enforcement System awarded to Redflex Traffic Systems USA). E. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of fencing materials for the Lake Forest Dog Park; providing for the expenditure of funds therefor; and providing an effective date (RFP 3402—Lake Forest Dog Park Fencing awarded to Hurricane Fence in the amount of$25,144.48). F. Consider adoption of an ordinance authorizing the Mayor to execute an amended 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. G. Consider adoption of an ordinance of the City of Denton, Texas terminating that certain airport lease dated November 2, 2004, by and between the City of Denton, Texas and Terrence Jarog, authorizing the City Attorney or his designee to take appropriate legal action if necessary, to effectuate the termination, and providing an effective date. The Airport Advisory Board recommends approval (5-0). City of Denton City Council Agenda November 15, 2005 Page 4 H. Consider and confirm the appointment by the City Manager of a new member to the Civil Service Commission. I. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Agreement with the DENCO Area 9-1-1 District for the purpose of establishing the Denton Police Department as the primary public safety answering point (PSAP) within the DENCO enhanced 9-1-1 system; and providing for an effective date. J. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager to pay the City's annual consolidated water quality fees for FY 2006 to the Texas Commission on Environmental Quality; authorizing the expenditure of funds therefor; providing an effective date. (The Public Utilities Board will consider this item at their November 14th meeting.) K. Consider approval of a resolution granting recognition of Local 1291 of the International Association of Fire Fighters as the sole and exclusive bargaining agent for the non-exempt Denton firefighters, and authorizing the City of Denton to meet and confer with the association under Subchapter C of Chapter 142 of the Texas Local Government Code without conducting an election. L. Consider approval of a resolution reviewing and adopting the Investment Policy for funds for the City of Denton; designating an investment officer; providing a savings and a repealing clause; and providing an effective date. 4. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance regarding a request for a Specific Use Permit for approximately 0.904 acres to allow a drive-through facility. The site is in a Neighborhood Residential Mixed Use (NRMU) zoning district. The subject property is generally located at the southeast corner of Sundown Blvd. and Teasley Lane. A bank with a drive-through is proposed. The Planning and Zoning Commission recommends approval (7-0). (S05-0001, Northstar Bank) 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance of the City of Denton approving a lease agreement between the City of Denton and John Eric Schmitz for the lease of a portion of street right-of-way for the construction, occupancy and maintenance of a porch area in conjunction with a business located at the northeast corner of Walnut and Cedar Streets, which is commonly known as 209 W. Hickory Street, Denton, Texas; and providing an effective date. B. Consider approving an exaction variance of Section 35.20.3.13 of the Denton Development Code concerning sidewalks. The approximately 0.35 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). (V05-0022, Klement Laundry) City of Denton City Council Agenda November 15, 2005 Page 5 C. Consider a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along McKinney Street. The approximately 0.35 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). (V05-0023, Klement Laundry) D. Consider a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along Wood Street. The approximately 0.35 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). (V05-0024, Klement Laundry) E. Consider approval of a resolution casting votes for membership to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. F. Consider approval of a resolution nominating members to the Appraisal Review Board of the Denton Central Appraisal District; and declaring an effective date. G. Consider adoption of an ordinance of the City of Denton, Texas, denying the request of INC Partners Denton, LLC dated November 1, 2005 for inclusion in a three-year annexation plan related to Annexation Case No. A05-0002 and declining its request for arbitration; and providing an effective date. H. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: A. Dr. John Paul Eddy regarding a smoking ban in the Civic Center and the Center for Visual Arts. B. Ed Soph regarding continuing concerns about Eureka! I. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. J. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda K. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. L. 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 November 15, 2005 Page 6 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 IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: City Manager's Office CM: Mike Conduff, City Manager SUBJECT Hold a discussion and give staff direction regarding the 2006 Council meeting schedule. BACKGROUND Looking forward to the 2006 calendar year, the 2006 City Council Calendar has been prepared for Council consideration allowing for 5th Tuesdays and conference schedules. Staff has worked to provide you with adequate time to discuss the issues you have brought forward as needing Council attention. It is our goal not only to schedule those items you have already listed as being your priorities for discussion, but to identify ample time throughout the year outside the Council work sessions and business meetings the first and third Tuesdays of the month, per charter provisions, to address council requests as you bring them to our attention. Respectfully submitted: Jennifer Walters City Secretary Draft 2006 CITY COUNCIL MEETING DATES January 2 No Luncheon New Year's Day Holiday January 3 Work/Regular Session January 10 2nd Tuesday Session January 17 Work/Regular Session January 24 No Meeting USCM, Washington, DC, 1/25-27 January 31 No Meeting February 6 Luncheon February 7 Work/Regular Session AMCC, Corpus Christi, 2110-12 February 14 2nd Tuesday Session February 21 Work/Regular Session February 28 No Meeting March 6 Luncheon March 7 Work/Regular Session March 14 No Meeting NLC, Washington, DC, 3/11-15, Spring Break, 3/13-17 March 21 Work/Regular Session March 28 No Meeting Apri13 Luncheon April 4 Work/Regular Session April 11 2nd Tuesday Session April 18 Work/Regular Session April 25 No Meeting May 1 Luncheon May 2 Work/Regular Session May 9 2nd Tuesday Session May 16 SC Work/Regular Session May 23 Election Meeting Installation of CC Members Only May 30 No Meeting June 5 Luncheon TCMA, Corpus Christi, 6/2-5 June 6 Work/Regular Session USCM, Las Vegas, NV, 6/2-6 June 13 2nd Tuesday Session June 20 Work/Regular Session June 27 No Meeting July 3 No Luncheon Council Recess July 4 No Meeting July 4th Holiday July 11 No Meeting Council Recess July 18 Work/Regular Session July 25 SC Work/Regular Session August 1 Work/Regular Session August 7 Luncheon August 8 2nd Tuesday Session August 15 Work/Regular Session August 22 No Meeting August 29 No Meeting Draft 2006 CITY COUNCIL MEETING DATES September 4 No Luncheon Labor Day Holiday September 5 Work/Regular Session September 12 2nd Tuesday Session ICMA, San Antonio, 9/10-13 September 19 Work/Regular Session September 26 No Meeting October 2 Luncheon October 3 Work/Regular Session October 10 2nd Tuesday Session October 17 Work/Regular Session October 24 No Meeting TML,Austin, 10/25-28 October 31 No Meeting November 6 Luncheon November 7 Work/Regular Session November 14 2nd Tuesday Session November 21 No Meeting Thanksgiving Holiday, 11/23-24 November 28 No Meeting December 4 Luncheon December 5 Work/Regular Session NLC, Reno, NV, 12/5-9 December 12 SC Work/Regular Session December 19 No Meeting December 26 No Meeting Christmas Holiday, 12/25&26 SALists12006 CC Mtg Dates.doc [Revised 11/07/05 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Parks and Recreation Department ACM: Howard Martin, 349-8232 SUBJECT Receive a report, hold a discussion and give staff direction regarding the Denton Public Art Policy Process. BACKGROUND Public art is a mirror that reflects the local environment, cultural values, and artistic vitality of a community in which it exists. At its best, public art is more than just art installed in public places. It is art that involves "the public." It is a community-based process of dialogue, involvement, and participation. Public Art enhances the quality of life for citizens by encouraging a heightened sense of place, enhancing a community's prestige, and enlivening the visual quality of the built environment. Economically successful cities share certain traits, among them is the recognition that an aesthetically appealing community has a clear advantage in attracting and keeping businesses and the people they employ. Public art is entwined with economic development and quality of community life. Across the country and in numerous Texas cities, public art policies provide the framework to guide a city's comprehensive approach to public art. The underlying objective of most public art policies is to enrich the cultural and intellectual life of the community by building and maintaining a unique collection of public art that can be accessed, enjoyed and appreciated by a large number of people including residents, visitors, and tourists. Most policies outline a community vision, and define goals and objectives. A few of the most common objectives include, but are not limited to: • a strategic approach to commissioning and placement of public art, • establishing mechanism(s)for funding public art, • effective and efficient management of public art, and • adequate funding for the ongoing maintenance of public art. Once a public art policy is in place, a public art plan or public art program is developed detailing the strategies to implement policy objectives. Public art is referenced in The Denton Plan as a key design element in achieving quality urban environment. It states that, "Public art provides a number of benefits to the city. It can create interest, create local distinctiveness, provide a memorable image associated with the city or I certain districts within the city, lend character to urban spaces, and make the urban environment more attractive." Goals for Public Art are established both in the Urban Design and Streets section of The Denton Plan and include: ➢ Urban Design • The provision of public art will normally be expected as part of any large development scheme. • Public art should be considered as an integral part of the design of spaces in and around development. • Encouragement is given to the involvement of commission experts, so that opportunities are available to a wide range of artistic talent. ➢ The Street o Adopt standards to guide placement of art in public places, such as landmarks, view corridors, pockets, traffic circles and other locations of prominent stature. Public art was addressed as part of "A Vision For Denton" and more recently in the white paper presented to the City Council in January 2004 on Community Aesthetics. Historically, the City of Denton has received donations and commissioned numerous pieces of art related to various capital construction projects that included indoor and outdoor public facilities. Each art project involved a unique process and selection, however, there has never been an established policy on how the City of Denton accepts, selects, commissions, places, maintains and manages public art. OPTIONS Council may direct staff to initiate a process to research and develop a public art policy for the City of Denton, provide additional information to the Council for consideration, or postpone the development of a public art policy at this time. RECOMMENDATION Staff recommendation is to coordinate the development of a public art policy as a public/private cooperative with the Greater Denton Arts Council. As part of that process, a Public Art Policy Task Force would be formed to guide the development of the policy and insure input from a broad spectrum of public and private stakeholders. The scope of the task force would initially focus on the development of a public art policy, however, Council could charge the task force with a broader scope of responsibility, possibly including an Art Maser Plan for Denton. The following is a proposed process and schedule, along with the proposed composition of the task force. Public Art Policy Development Proposed Process November 7, 2005 Parks, Recreation and Beautification Board reviews policy development process as Discussion Item. 2 November 15, 2005 City Council reviews policy development in Work Session November 25, 2005 Public Art Policy Task Force selection is completed February 2006 Public Art Policy Task Force completes draft policy February 2006 Review by Parks, Recreation and Beautification Board and City Council in Work Session March 2006 Parks, Recreation and Beautification Board makes final recommendation to City Council March/April 2006 City Council final consideration of Public Art Policy Public Art Policy Development Task Force—Proposed Composition Parks and Recreation Department Director Parks, Recreation and Beautification Board Greater Denton Arts Council Director Greater Denton Arts Council Board Local Artists Visual Arts Society of Texas The Arts Guild Texas Woman's University Department of Visual Arts UNT Department of Visual Arts Economic Development Partnership Board Image & Marketing Task Force Leadership Denton Class (ad hoc member) ESTIMATED PROJECT SCHEDULE Final consideration of a Public Art Policy is projected for March 2006. PRIOR ACTION/REVIEW The Parks, Recreation and Beautification Board reviewed this item at the November 7, 2005 meeting. No action was required. FISCAL INFORMATION NA EXHIBITS 1. Survey of Regional City Public Art Programs Respectfully submitted: ........................................................ Janet Fitzgerald, Director Parks and Recreation Department 3 rl 3-I Y 7� cz cz U cd cz cz 7S 116 W m ° O w v cz cz 81 W 00 O O O D U U s.y O L." cd cz r cz cv'd CZ Ct U i—I Y U U O P-I U H U pp CT' Y cz Y yy l(1 cz o " N v �CC C7 —ct cC cz cz ct rs ct f�T- C7 ( U � cz v w D CZ o°n v w cz cz c� v Y CC m o 7D o cz Q pp " bq w Y W cz cz I--I �• cz Cam" sti Y cd a U O O Y ,V—i A O CC cz cz cz cz ' o cz c0 cz cz cz � ~•� .O U U ,y ,°O. U N ,°O.p U '� 3 U O cz N O Y O O CZ cd t7 cz U a U cz cz ct cz ° °? ° o ct cz O o o p a cd CAA cz cz cz '� .U. '—' U ,� U U O O �..' 3 F'"ay' O c O cz �0 W N U ct cz + 4. 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N v' c�C c on [ ¢+ cz o cz p i U N CZ o cz cz cz U cz 3 U a v ' on o O w U o ° 'Y ct Y U 0 cz +' U O �' ct bq U U U 4z, 0 0 o cz cz o o p cz u ° 3 Q a H3 0 o � +� Vl Q-I H O vl Z a) U N T O O .y I� /U cz c 75 U �-I cz �--I cz o cz a O cz A � 3 o z V', 0 � N M cz cC O cz m D D Is) cz Ct� cz cz cz cz o p o � CZ � O 3 CC V c .r ) O cz cz cz p u U U cz U 4 cz cz U U 4.1 .y 7S 0 0 N O v 0 N W ° a 5 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Fire Department if CM/DCM/ACM: Jon Fortune,Assistant City Manager SUBJECT: Receive a report, hold a discussion and receive direction on the funding of LEED certification for Fire Station #7. BACKGROUND: The City has purchased 88 acres in the southwest portion of the City to construct a fire station and training facility. Architect James Kirkpatrick in conjunction with the Fire Department planning committee has nearly completed the design process for this fire station. Due to the significant amount of discussion of constructing a "green" fire station that meets more stringent environmental standards than what the current codes require, Staff is requesting discussion and direction from the City Council. Before Mr. Kirkpatrick and the Fire Department complete final design and go out for construction bids, Staff would like direction from the City Council if the City should pursue specialized certification from Leadership in Energy and Environmental Design (LEED®). The cost to accomplish this is approximately $302,925 as determined by the attached "LEED Project Checklist for Fire Station #7." If the City Council desires LEED certification for station #7, a funding source will need to be identified. What is LEED Certification? A key tool in building green is a voluntary certification known as Leadership in Energy and Environmental Design (LEED®), a program launched by the U.S. Green Building Council representing all segments of the building industry in 1998. The LEED Green Building Rating System is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. Sustainability is ecologically compatible design with a natural systems approach based on a dynamic system of values that will continually redefine itself over time. LEED was established to accomplish the following goals: • Define "green building" by establishing a common standard of measurement. • Promote integrated, whole building design practices. • Recognize environmental leadership in the building industry. • Stimulate green competition. Page 1 of 6 ■ Raise consumer awareness of green building benefits. LEED has quickly become recognized as a "best practices" standard for green building design and operations. Used in the commercial, institutional and residential building markets, the LEED system is a complete framework for planning and assessing a building's performance and environmental sustainability. The LEED system recognizes achievements and promotes expertise in green building through a comprehensive system of project certification, professional accreditation, training and practical resources. LEED certification emphasizes state-of-the-art strategies for sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. LEED is a flexible, point- driven certification of buildings that sets values for design features, construction processes and energy use. LEED organizes green building measurements into six specific categories by which sustainable design can be measured. The attached "LEED Project Checklist for Fire Station#7" shows the complete breakdown of all six categories and the credits in each. 1. Sustainable sites 2. Water efficiency 3. Energy and atmosphere 4. Indoor environmental quality 5. Materials and resources 6. Innovation and design What are the Benefits of a LEED Certified Fire Station? LEED certification offers the opportunity to create an environmentally sound and resource- efficient fire station by using an integrated approach to design that is sensitive to natural resources and their protection. Productivity savings that could be realized are very significant for fire stations because the building is used 24 hours a day, 7 days a week. As energy costs continue to rise, so does the popularity in green buildings. This new direction in building is designed to conserve energy, building materials, land and more while providing tenants with a better place to live and work. It is not only good for the environment, but also has other significant benefits: cost savings from reduced energy and water use; reduced waste; lower operations and maintenance costs; and enhanced occupant productivity and health. A healthful environment at the fire station enhances the health and well being of the crews who live and work there for twenty-four hours at a time. Specifying construction materials and interior-finish products with zero or low emissions improves indoor air quality. Many building materials and cleaning/maintenance products emit toxic gases, like formaldehyde, which can have a negative effect on firefighters' health and productivity. Selecting materials resistant to microbial growth can prevent microbial contamination. Adequate ventilation, heating and cooling systems promote comfortable work and living environments. Page 2 of 6 What are the Potential Cost Savings for LEED Certification? According to a 2004 study of LEED by the U.S. General Services Administration, initial investments in environmentally efficient building technologies often pay for themselves within a facility's first few years of operation. Many green building options require an up- front investment that produces benefits spread out over the life cycle of a building. It is critical, therefore, to take a life cycle perspective in analyzing the costs and benefits of green buildings. The Fire Department's strategic plan suggests a life cycle for a fire station of at least twenty- five years. In addition to significant economic savings associated with worker productivity increases, the use of salvaged materials, water efficient landscaping, and increased energy efficiency will pay substantial dividends to the City in the long term. Two of the most obvious and significant operating costs affected by green options are the costs of energy use and water use. Several green options for Fire Station #7 have the potential to affect energy use and, consequently energy costs of operating the building. Energy costs can be calculated by multiplying electric and natural gas (and any other form of energy used in the building) rates by the amount of energy used and adding any fixed energy costs. One of the biggest challenges to creating sustainable designs is the perception of upfront costs versus long-term operations and maintenance costs. Some green products are more expensive than their less sustainable counterparts. In some cases, design costs can be higher when specifying new technologies that require more time to evaluate quality and durability. In reality, design and construction only represent a small portion of the building's lifetime costs. Recognizing this, the City of Seattle recently adopted an ordinance that specifies city- owned buildings, including fire stations and a public safety training facility, to be designed and constructed to meet sustainable design (LEED) requirements. "It is difficult to quantify dollar value on quality of space how do you quantify the intangibles such as sense of pride, better performance and comfort? This is a huge issue," said Darrell Turner, architect and project manager for the city of Seattle's Joint Public Safety Training Facility, a project that is being designed to meet the requirements for a silver LEED certification. The initial cost impacts that we anticipate analyzing on an incremental basis include at least the following: • Higher costs of more energy-efficient equipment or materials. • Higher costs of water conserving equipment. • Reduced costs of hauling and landfilling construction materials. • Higher costs of recycled, local, and environmentally certified materials. • Higher costs of less polluting, less harmful materials. • Building system commissioning costs. Page 3 of 6 A comprehensive analysis of green buildings in Portland Oregon, "Green City Buildings: Applying the LEED Rating System," in June 2000, estimated the energy consumption savings for a LEED certified fire station to be at least 30%. The biggest potential payoff for Portland, however, was the probable improvements in productivity of the building occupants. These would result from better lighting, airflow, indoor air quality, etc., which would improve worker comfort and reduce complaints, absenteeism, and health problems. The study noted, "The current argument for green buildings promotes the idea that investments will pay off in the long run due to enhanced health and productivity of the workforce." It also pointed out that direct measures of productivity might be inadequate to encompass the effect of green buildings on performance; for example, customer satisfaction, employee retention, and employee attitudes about work and the city may be less tangible, but nevertheless important dimensions of quantifying green building effects. Portland estimated total overall life cycle savings would have been about 15% of the original construction cost with LEED certification. Portland felt they could reduce long-term operating and capital costs based on life cycle cost savings, increase energy efficiency, protect and enhance the environment, and reduce environmental impact. "We determined that we wanted to lead by example, and it was the city's turn to step up," stated City Council Member Nancy Davidson. Other than options that increase productivity, Portland identified these primary opportunities to reduce life cycle costs: • Measures to improve energy efficiency • Measures that reduce water consumption • Use of salvaged materials According to an October 2003 report, "The Costs and Financial Benefits of Green Buildings," issued by California's Sustainable Building Task Force, a minimal increase in upfront costs of about 2 percent would result in life cycle savings of 20 percent of total construction costs. This is 10 times the original investment. The report determined that ecologically compatible practices can reduce life-cycle costs, saving on long-term energy and operating costs. When owners and stakeholders understand this, they are more receptive to higher upfront capital costs. The following chart from the California report was developed from an aggregation of data on actual or modeled costs for 33 green buildings and largely derived from extensive conversations with architects, developers and others. They identified that the financial benefits of green buildings include lower energy, waste, and water costs, lower environmental and emissions costs, lower operations and maintenance costs, and savings from increased productivity and health. These benefits range from being fairly predictable (energy, waste and water savings) to relatively uncertain (productivity/health benefits). Energy and water savings can be predicted with reasonable precision, measured, and monitored over time. In contrast, the report stated that productivity and health gains are much less precisely understood and far harder to predict with accuracy. This is due in part to the complexity of human health and performance issues, the large range in human reactions Page 4 of 6 to indoor environmental quality changes, and the large range of ways that improvements can show up, including lowered insured or uninsured health costs, lower employee turnover or increased productivity. They estimated the significant value of the productivity and health of employees to be $36.89 per square foot over a 20-year life cycle. M M Category 20-year Savings per Square Foot Energy Value $5.79 Emissions Value $1.18 Water Value $0.51 Waste Value (construction only— 1 year) $0.03 Productivity and Health Value $36.89 O & M Value $8.47 Total 20-Year Cost Savings Per Square Foot $48.87 Table 1 Using the previous comprehensive studies of LEED certified facilities and the potential future energy cost savings in Denton, Staff estimates that the savings would be as follows if the City of Denton LEED certified Fire Station #7 with a total square footage of 15,954. Energy savings were determined by starting with Staff s original estimate of annual utility costs of $36,480 with an inflation factor of 5% per year for 25 years. The energy value of 30% was taken from the total 25-year total. The attached "LEED Project Checklist for Fire Station #7" lists many of the benefits of LEED certification, many of which fit into the productivity and health value. It lists $42,000 of potential water savings due to reduced irrigation. The productivity and health value is figured but not added into the potential savings due to the subjectivity of the cost savings. Category 25-year Savings Energy Savings at 30% $559,386 Emissions Value (@$1.18/sq ft) $18,826 Water Value ("LEED Project Checklist for Fire Station#7') $42,000 Waste Value (construction only— 1 year) (@$0.03/sq ft) $479 O & M Value (@$8.47/sq ft) $135,130 Total 25-Year Potential Cost Savings $755,821 Productivity and Health Value ( $36.89/sq ft) $588,543 Table 2 PREVIOUS COMMITTEE ACTIONS: On October 24, 2005 the Committee on the Environment determined the additional costs for LEED certification to be worthwhile to pursue and recommended that Staff bring the issue to the City Council for discussion and direction. The Committee on the Environment directed Staff to provide a more comprehensive study on the potential cost savings for Council consideration. It also identified a possible funding source as the Environmentally Preferable Purchasing program. Page 5 of 6 RECOMMENDATION: Staff believes that providing additional funds for Fire Station #7 to accomplish Silver LEED certification is in the best interests of the community and the Fire Department members who will occupy the facility. Therefore, Staff recommends the City Council use the Environmentally Preferable Purchasing program to fund the additional costs to certify Fire Station#7 to LEED Silver. FISCAL INFORMATION: The original budget of $2.5 million to construct the fire station did not include the funds to accomplish LEED certification. The attached cost estimate for Fire Station #7 shows an estimated total cost of$2,920,523, which includes $241,550 for LEED certification costs, but does not include the $61,375 administrative and engineering costs that make up the total $302,925 for LEED certification. The approved construction budget for Fire Station #7 which was estimated more than two years ago before the current significant increases in construction costs, especially steel and wood, is $2,500,000. Therefore, the LEED certification cost of $302,925 is approximately 12.1% of the budgeted cost or 10.2% of the total current estimated project cost of$2,981,898. Keep in mind that the Portland study estimated savings of 15% of the original construction costs over the life cycle of its fire stations. Using the 15% would save approximately $435,000 for Station #7. California also estimated a life cycle cost savings of 20% of the total construction costs on LEED certified facilities. Using the 20% would save approximately $580,000 for Station #7. The potential savings identified in Table 2 are $755,821 with an additional health and productivity benefit estimated at$588,543. The key point to be made is that there clearly will be substantial cost savings over the life cycle of Fire Station#7 —more than the additional costs to do the LEED certification. If you have any questions please give me a call at 349.8830. Respectfully Submitted: 0 A"'Ww- - -�-:I-- - I I Ross Chadwick Fire Chief Attachments: LEED Project Checklist for Fire Station#7 Cost Estimate for Fire Station#7 Page 6 of 6 N O O N N 4 N O Z rn O 0 'o m C 0 r N N m - - O O C ".O .O N O T c"O - p O O 2 O O > O O N O O O 0 0 0 O O O O O O O O O O N I 00 E Efl Efl O EH O O O O O O N N O O O) CO O O M O O O O O O N N O M O N CO O N CO N O CO O .O a a m Q U C Q _ 7 N V O O y 0 O N •- U •O O O � N t .c uu'i E SO 0 u a Q W p v c Q O Ira s 0 z c v W v u 8 d ¢ ° pl pl N C c c N c c c c U V p c w O E O O O O c c y v V I a o 0 0 o p p E E 'o u u U _ O t t t t N N o �o •U p L ° v a a a a " a a ? v' c c 3 °- O- v d = d >: >: >: v v v v y y t u u v p p u v c T a a a E > c 41 0 0 0 0 N N u�i u�i c c c p N N m N O N uci uci uci v c 0 L rn u E 2 N N N N h h y N c c U U N y y c uci W N N N U N E ?' fO °n N a N > > > > O O p O C 0 p v 0 c c c c c p z 3 3 3: N c *+ _ �' > 3 v v v v " E E o o r v v O v v p E E v v v o c o v W « N O N N N N pl 0 0 c o o c 2 G G7 G7 G7 •p N N N 3 E 3 3 U O m a 0 i U CO CO � � Ws... ... ... ... ... ... ... ... ... ... ... ... ... ... .-. .-. .-. .-. .-. 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O! - � N O o N C O N o t t O o m 0 h °' N Z > > U N °-�� 0 O O 10 O N m a� v v w w o E m Y c c .o h E o Q 9 o O ° s s 0rn °7rn = ° h 4 v ° E ° _ y C y C h O) O) Q U U 2 C L « N c c y y y y E E E u c c o 0 0 0 0 o dO = = o E o a3i 0 - - - E � � ° o ° > g > � � 'v 'v 'v 'v ^nhh U o aaaa � > c c c v � � y y y33 o 0 c v v 0 0 v ° c c c c E U o O U U 0 o o 0 O=° u o 0 U E V v v v 0 0 v E E 0 0 -E -E -E -E U E >en >en '0 c c 0 c c 0 c c 0 ° ° ° ; 0 0 o° o o o o c c Q p v u M a v c v v v c c o o o � c > c c c 3 3 3 3 0 c c H 0 0 0 0 ° t in m' m' m' U U 2 2 = U .3 u+ US > U U 2 2 2 2 E U U G G Y c c c c U N M N N N N V N N M V N N N OL N M V (A N N CO CO V V N N (O N N co co V V V V N (O (O W W d N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y = a a a a a O a G G G G G G G G G G G G G C) C) C) C) C) C) C) C) C) C) C) C) C) o C� o TrI 0 W N Z _y O N aj 0 9 w W H o > F O L O U v �L 4l O O a 0 = = O M y V Q Y C Y Fire Station No.7 Total Page 1 Denton,Texas Enclosed Area Bldg Area First Floor 15,171 Electric Mezzanine 783 15,954 sf Kirkpatrick Architecture Studio, I CES-Computerized Estimating Services 100 W. Mulberry 2823 VZ CR 1222 Denton,Texas 76201 Grand Saline,Texas 75140 File#-158 940-387-8182 800-705-7595 Plan#- 2 James Kirkpatrick Greg Blanchard File name-Fire Station No.7 Design Development Total $/sf %of Site Building Estimate Cost Total Cost Cost General Conditions-11 months 231,354 14.50 7.92% 50,000 181,354 Building Permit none 0.00 0.00% none 0 Testing&Inspection by owner 0.00 0.00% by owner by owner Selective Demolition 980 0.06 0.03% 980 0 Mass Excavation 44,671 2.80 1.53% 44,671 0 Soil Stabilization 16,418 1.03 0.56% 16,418 0 Termite Control 2,200 0.14 0.08% 2,200 Site Utilities 38,880 2.44 1.33% 38,880 0 Landscaping&Irrigation 75,000 4.70 2.57% 75,000 0 Rain Colletion System 29,000 1.82 0.99% 29,000 Wood Fencing 2,400 0.15 0.08% 2,4001 0 Monumental Si na a Letters 2,700 0.17 0.090/0 2,700 0 Pavement Markings 1,354 0.08 0.05% 1,354 0 Site Concrete 247,669 15.52 8.48% 247,669 0 Pourous Pavement 17,632 1.11 0.60% 17,632 0 Building Concrete 291,343 18.26 9.98% 291,343 Masonry 222,788 13.96 7.63% 4,320 218,468 Structural Steel 78,888 4.94 2.70% 78,888 Light Gage Metal Trusses 37,223 2.33 1.27% 37,223 Miscellaneous Steel 18,798 1.18 0.64% 8,470 10,328 Rough Carpentry 35,798 2.24 1.23% 35,798 Millwork 59,583 3.73 2.04% 59,583 W , D ,&Joint Sealants 13,802 0.87 0.47% 2,085 11,717 Building Insulation 35,688 2.24 1.22% 35,688 Prefinished Roofing&Sliding 111,239 6.97 3.81% 111,239 Metal Doors&Frames-Materia 6,495 0.41 0.22% 6,495 Wood Doors-Materials 8,000 0.50 0.27% 8,000 Finish Hardware-Materials 7,315 0.46 0.25% 7,315 Doors, Frames& Hardware-La 5,750 0.36 0.20% 5,750 Special Doors 44,000 2.76 1.51% 44,000 Glass&Glazing 46,123 2.89 1.58% 46,123 Exterior Insulation Finish S ste 12,651 0.79 0.43% 12,651 Drywall&Acoustical 79,654 4.99 2.73% 79,654 Ceramic Tile 22,670 1.42 0.78% 22,670 Carpet&Resilient 25,851 1.62 0.89% 25,851 Sport Flooring 3,965 0.25 0.14% 3,965 Painting&Wall Covering 48,020 3.01 1.64% 2,510 45,510 Liquid Markerboards 640 0.04 0.02% 640 Toilet Partitions&Accessories 4,435 0.28 0.15% 4,435 Aluminum Louvers 1,350 0.08 0.05% 1,350 Flagpole 2,500 0.16 0.09% 2,500 Identification Devices 4,685 0.29 0.16% 4,685 Building Plaque 1,200 0.08 0.04% 1,200 Lockers 5,565 0.35 0.19% 5,565 Fire Extinguishers&Cabinets 965 0.06 0.03% 965 Laundry Equipment 9,200 0.58 0.32% 9,200 Projection Screens 1,275 0.08 0.04% 1,275 Residential Equipment 13,760 0.86 0.47% 13,760 Window Treatment 5,667 0.36 0.19% 5,667 Recessed Entrance Mats 1,296 0.08 0.04% 1,296 Plumbing 99,600 6.24 3.41% 99,600 Fire Protection 19,942 1.25 0.68% 19,942 HVAC 102,500 6.42 3.51% 102,500 Electrical 248,851 15.60 8.52% 18,125 230,726 Fire Alarm 20,740 1.30 0.71% 20,740 Subtotal- 2,470,071 154.82 84.58% 533,214 1,936,858 8%Design Contingency- 197,606 12.39 6.77% 42,657 154,949 General Liability Insurance- 14,672 0.92 0.50% 3,167 11,505 Builder's Risk Insurance- 5,365 0.34 0.18% 1,158 4,207 6.5%Overhead&Fee- 174,701 10.95 5.98% 37,713 136,989 Subtotal- 2,862,4161 179.421 98.01%1 617,9091 2,244,506 General Contractor's Bond- 58,1071 3.641 1.99%1 12,5441 45,563 Design Development Estimate- $2,920,523 $183.06 100.00% $630,453 $2,290,070 $39.52 $143.54 /sf /sf Add Alternate-No.1 - 151,772 Increase Fire Truck Bay Total including the Alternates- $3,072,295 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Police ACM: Jon Fortune it SUBJECT An Ordinance of the City of Denton, Texas amending the provisions of Chapter 6, Section 18 regarding the adoption of dogs, cats, and ferrets; providing for a severability clause; providing a repealer clause; providing for a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. BACKGROUND On February 22, 2005, staff presented Council with a comprehensive analysis of the Denton Animal Shelter. One of the changes suggested by staff was the use of a one-stop adoption program that would facilitate a more efficient adoption process for both staff and adopters as well as improve the overall adoption image of the shelter. Council directed staff to pursue the one-stop adoption program. Chapter 6, Section 18 of the city's Code of Ordinances outlines the requirements for adopting dogs, cats, and ferrets from the city shelter. Previously, a potential adopter was required to obtain a pre-paid receipt from a veterinarian for the required spay/neuter services and vaccinations. Under the one-stop adoption process, potential adopters would select an animal to adopt, complete the paperwork, and pay the adoption fee. The adoption fee would include payment for spay/neuter services, rabies vaccination, pre- surgical examination, testing for certain diseases/conditions, de-worming (if necessary), and the first year registration for city residents. Once the paperwork and payment are handled, the animal would be transported to the veterinarian. The adopter would pick up the animal at the provider following the completion of the services and any necessary recovery time. OPTIONS 1. Council can adopt the ordinance as written. 2. Council can direct staff to make revisions or amend the ordinance and present it for future consideration. 3. Council can reject the proposed ordinance. RECOMMENDATION Staff recommends Council adopt the ordinance as written. 1 PRIOR ACTION/REVIEW Council Work Session February 22, 2005. Council Work Session November 1, 2005. FISCAL IMPACT The recommended changes to the adoption process should not have any negative fiscal impact. It is anticipated that these changes will streamline the process and encourage additional adoptions. Currently, an adopter pays a ten-dollar ($10) adoption fee per animal to the shelter, and city residents pay four dollars ($4) for city registration. The adopter also pays a veterinarian for spay/neuter services and vaccinations. Under the proposed changes, the adopter will pay a flat adoption fee of one hundred twenty dollars ($120)for dogs and one hundred ten dollars ($110)for cats at the time of adoption. Based on the pricing scale provided in Appendix A, this flat fee should be sufficient to cover the projected costs of the majority of the procedures done on animals from the shelter. Based on the varying number of animals adopted and the services that might be required for each, there is no accurate means to project the overall fiscal impact. However, the flat rate fees should be sufficient to provide the same revenue projected under the current process, or slightly more. Respectfully submitted, r Charles Wiley Chief of Police Prepared by: '<VV_Q Z- -- Scott Fletcher Lieutenant Operations Bureau 2 O O O O O O O U O 0 0 0 0 U O U 0 0 CC CC CC CC p 0 p 0 0 0 p 0 p 0 0 CC 69 CC 69 69 69 CC 69 CC 69 69 X � Q O CL U CO U CO CO CO U CO U CO CO 69 � 69 69 69 � 69 � 69 69 � •^� CSC CSC CSC CSC O Ov 'C N ro cz ° o 0 0 0 0 0 0 7� 7� 7� 7� • U o U o p. 0. 0� scos s C-1 v v v u u u u eC eC eC eC o o W to °n � too E to to to n cv n aUawQxa" � u / / \ � 2 J § \ \ 2 . .. . � \ k CL . ... < .... / \ \ § 7 � 2 2 \ � � \ oc \ ( 9 \ § Q to ® � - « 3 « ® o ) » 'a % ° § t R o — / � \ CO) � \ \ \ LH aUakoka - S10ur Documents\Ordinances\05\Anim iAduplioMmendments.doc ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE PROVISIONS OF CHAPTER 6 SECTION 18 REGARDING THE ADOPTION OF DOGS, CATS, AND FERRETS; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR 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. Chapter 6 "Animals" of the Code of Ordinances of Denton, Texas is hereby amended by amending Section 6-18 regulating the adoption of dogs, cats, and ferrets and shall read as follows: Sec. 6-18 Adoption of dogs,cats, and ferrets. (a) The animal control center is authorized to offer for adoption any impounded animal not redeemed by its owner within ninety-six (96) hours or any animal released by its owner for adoption,except where otherwise specified. (b) Animal Services Officers shall be the sole judge as to whether or not an animal is suitable to offer for adoption. A decision to offer a particular animal for adoption shall not constitute a warranty, expressed or implied, of the health, temperament, or age of the animal. (c) In order to adopt a dog or cat, a person shall: (1) Complete the necessary adoption paperwork and pay an adoption fee as established by the city council and kept on file in the office of the city secretary. (2) If required by this article, pay a registration fee as established by the city council and kept on file with the city secretary. (d) In order to adopt a ferret, a person shall: (1) Complete the necessary adoption paperwork; (2) Pay a veterinary clinic for the administration of vaccinations against rabies and other communicable diseases common to the animal species and present a receipt of payment from the veterinary clinic; (3) If required by this article, pay a registration fee as established by the city council and kept on file with the city secretary; and S:\Our Documents\Ordinances\05 WnimalAdoptioMmendmenK.doc (4) Subsequently provide certification from the veterinary clinic that the animal was vaccinated as prescribed within seven (7) days of the animals release from the animal shelter. (e) A person who adopts an animal from the animal control center, that is determined by the city's contracted veterinary provider to be either of insufficient age or medical condition to receive vaccinations or be spayed or neutered as prescribed by law, shall follow the instructions provided by the contracted veterinary provider and ensure that the adopted animal is subsequently vaccinated and spayed or neutered by the contracted veterinary provider when it is medically capable. (f) If a person fails to meet the requirements of this section, the animal center is authorized to impound the animal. It shall be unlawful for any person, who is in violation of this section, to fail or refuse to surrender an animal adopted from the animal control center. SECTION 2. 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 effect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any invalidity. SECTION 3. Save and except as amended hereby, all the provisions, sections, subsections paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 4. 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 of this ordinance is violated shall constitute a separate offense. 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 of 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 Page 2 of 3 S:\Our Documenu\Ordinances\05\AnimalAdoptionAmendments.doc ATTESTED: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER,CITY ATTORNEY BY: Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Police ACM: Jon Fortune SUBJECT An Ordinance amending Ordinance No. 2001-338 to establish an adoption fee for dogs at one hundred and twenty dollars ($120), an adoption fee for cats at one hundred and ten dollars ($110), and an adoption fee for ferrets at ten dollars ($10) pursuant to Chapter 6 of the Code of Ordinances of the City of Denton, Texas; providing that a schedule of fees shall be maintained on file in the office of the city secretary; providing a savings clause; providing a severability clause; and providing an effective date. BACKGROUND This fee ordinance establishes the fees for adopting dogs, cats, and ferrets from the city animal shelter under the proposed change to a one-stop adoption process. The ordinance sets up a flat adoption fee that is designed to be sufficient enough to cover the cost of the contracted veterinary services and the revenue that was projected to be collected under the current adoption process (ten dollars per animal). OPTIONS 1. Council can adopt the ordinance as written. 2. Council can direct staff to make revisions or amend the ordinance and present it for future consideration. 3. Council can reject the proposed ordinance. RECOMMENDATION Staff recommends Council adopt the ordinance as written. PRIOR ACTION/REVIEW Council Work Session February 22, 2005. Council Work Session November 1, 2005. FISCAL IMPACT The recommended changes to the adoption process should not have any negative fiscal impact. It is anticipated that these changes will streamline the process and encourage additional adoptions. Currently, an adopter pays a ten-dollar ($10) adoption fee per animal to the shelter, and city residents pay four dollars ($4) for city registration. The adopter also pays a veterinarian for spay/neuter services and vaccinations. Under the I proposed changes, the adopter will pay a flat adoption fee of one hundred and twenty dollars ($120) for dogs and one hundred and ten dollars ($110) for cats at the time of adoption. Based on the pricing scale provided in Appendix A, this flat fee should be sufficient to cover the projected costs of the majority of the procedures done on animals from the shelter. Based on the varying number of animals adopted and the services that might be required for each, there is no accurate means to project the overall fiscal impact. However, the flat rate fees should be sufficient to provide the same revenue projected under the current process, or slightly more. Respectfully submitted, Charles Wiley Chief of Police Prepared by: Scott Fletcher Lieutenant Operations Bureau 2 O O O O O O O U O 0 0 0 0 U O U 0 0 CC CC CC CC p 0 p 0 0 0 p 0 p 0 0 CC 69 CC 69 69 69 CC 69 CC 69 69 X � Q O CL U CO U CO CO CO U CO U CO CO 69 � 69 69 69 � 69 � 69 69 � •^� CSC CSC CSC CSC O Ov 'C N ro cz ° o 0 0 0 0 0 0 7� 7� 7� 7� • U o U o p. 0. 0� scos s C-1 v v v u u u u eC eC eC eC o o W to °n � too E to to to n cv n aUawQxa" � u / / \ � 2 J § \ \ 2 . .. . � \ k CL . ... < .... / \ \ § 7 � 2 2 \ � � \ oc \ ( 9 \ § Q to ® � - « 3 « ® o ) » 'a % ° § t R o — / � \ CO) � \ \ \ LH aUakoka - S:\Our Documents\Ordinances\05\AnimalFee0rdinance.doc ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2001-338 TO ESTABLISH AN ADOPTION FEE FOR DOGS AT ONE HUNDRED TWENTY DOLLARS ($120), AN ADOPTION FEE FOR CATS AT ONE HUNDRED TEN DOLLARS ($110), AND AN ADOPTION FEE FOR FERRETS AT TEN DOLLARS ($10) PURSUANT TO CHAPTER 6 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT A SCHEDULE OF FEES SHALL BE MAINTAINED ON FILE IN THE OFFICE OF THE CITY SECRETARY; A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE;AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it in the public interest to create a fee for adoption of dogs, cats,and ferrets;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the following fees in the Schedule of Fees established by Ordinance No. 2001-338 are hereby amended to be collected pursuant to the specified provisions of Chapter 6 of the Code of Ordinances: SCHEDULE OF FEES Sec. 6-14 Dog and Cat Registration Fee $ 10.00 annually $ 4.00 annually if unable to procreate Sec. 6-17 Animal Impound Fees (1) Class A Animals (dogs, cats,fowl, each animal) First Impoundment $ 20.00 Second Impoundment $ 30.00 Third Impoundment $ 45.00 Fourth Impoundment $ 70.00 (2) Class B Animals (goats, sheep, lambs, pigs, sows, shoats, calves, foals, and animals of the same approximate size and weight, each animal) First Impoundment $ 30.00 Second Impoundment $ 40.00 Third Impoundment $ 75.00 Fourth Impoundment $113.00 S:\Our Documents\Ordinances\05\AnimalFee0rdinance.doc (3) Class C Animals (cattle, mules, horses, ponies, and animals of the same approximate size and weight, each animal) First Impoundment $ 35.00 Second Impoundment $ 50.00 Third Impoundment $ 75.00 Fourth Impoundment $115.00 (4) Class D Animal (prohibited, exotic, or wild animals requiring capture by center personnel [provided, if the Class D animal is already contained by the owner, then Class B fee schedule shall apply]) First Impoundment $ 34.00 Second Impoundment $ 50.00 Third Impoundment $ 75.00 Fourth Impoundment $115.00 Sec. 6-17 Daily Handling Fee First Day or part of Day $ 15.00 Each Subsequent Day $ 5.00 Sec. 6-18 Adoption Fees Dogs $120.00 Cats $110.00 Ferrets $ 10.00 Sec. 6-21 Carcass Handling/Dead Animal Disposal Fee Drop-off/Animal Brought to Animal Control Center $ 5.00 per animal City Pick-up of Animal $ 25.00 per animal Sec. 6-22 Animal Euthanasia Fees $ 30.00 per animal (1) Burial Box Small Animal up to 15 pounds $ 45.00 Medium Animal 16-30 pounds $ 55.00 Large Animal over 30 pounds $ 65.00 Page 2 of 4 S:\Our Documents\Ordinances\05\AnimalFee0rdinance.doc (2) Cremation Urn Up to 50 pounds Over 50 pounds Injection Mold Urn $ 65.00 $ 85.00 Redwood Box Urn $ 70.00 $ 90.00 Ceramic Urn $ 75.00 $100.00 Sec. 6-24 Quarantine Fees First Day or part of Day $ 15.00 Each Subsequent Day $ 5.00 Rabies Diagnostic Testing $ 70.00 Sec. 6-30 Prohibited Animal Permit Fee $ 50.00 per animal Sec. 6-38 Dangerous Animal Fee $200.00 per animal SECTION 2. The above-mentioned fees as established by the City Council shall be placed on file in the office of the City Secretary and made available to any member of the public who wishes to see a copy of the fees as established by this ordinance. The City Secretary is directed to maintain this Schedule of Fees on file in the City Secretary's office as adopted hereby or as in the future may be established by the City Council. All fees shall be paid to the City at the Animal Control Center in accordance with Article III of Chapter 6 of the Code of Ordinances of the City of Denton. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not effect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any invalidity. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage. Page 3 of 4 S:\Our Documents\Ordinances\05\AnimalFee0rdinance.doc PASSED AND APPROVED this the day of 12005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER- CITY ATTORNEY .4 BY: k= Page 4 of 4 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Charles Wiley 349-7925 ACM: Jon Fortune it SUBJECT Consider adoption of an Ordinance authorizing the City Manager to execute a Professional Services Agreement with the firm of Southridge Animal Hospital to provide sterilization and rabies vaccination services for the City of Denton Animal Services Center; authorizing the collection of funds therefor as reflected in the fee ordinance; and providing an effective date. RFP INFORMATION City Council reviewed this Request for Proposals for Animal Services (RFP 3391) at the November 3, 2005 Work Session. The agenda information sheet that was presented at this meeting is included as Attachment 1. The composite grading sheet, which ranks the four proposals submitted is included as Attachment 2. RECOMMENDATION Award a contract for sterilization and vaccination services to Southridge Animal Hospital. PRINCIPAL PLACE OF BUSINESS Southridge Animal Hospital Denton, TX ESTIMATED SCHEDULE OF PROJECT This is a one-year agreement, which will begin upon Council approval. FISCAL INFORMATION This adoption program and contract with Southridge Animal Hospital will not have a direct fiscal impact on the city. The cost of the services performed by Southridge Animal Hospital will be passed on to the adopters at the time they select an animal for adoption. Agenda Information Sheet November 15, 2005 Page 2 Respectfully submitted: 1 .;7— Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: November 1 Council Work Session Agenda Sheet Attachment 2: Grading Composite 1-AIS-RFP 3391 Attachment 1 AGENDA INFORMATION SHEET AGENDA DATE: November 1, 2005 DEPARTMENT: Police ACM: Jon Fortune SUBJECT: Receive a report, hold a discussion, and give staff direction regarding the vendor selection process for the veterinarian services contract for the Animal Shelter. BACKGROUND On February 22, 2005, staff presented a report to Council concerning an analysis of the Animal Services program. Staff sought direction on a strategic plan designed to address many of the identified problems in the current program. One of the suggested changes involved the current process for adopting animals out of the shelter. Staff recommended changing the current procedure to a one-stop adoption format where animals adopted out of the shelter were sterilized and vaccinated before being released to the adopter. Council directed staff to pursue this program. Staff began the development of a request for proposal. In August 2005, the city released a Request for Proposal seeking bids from qualified veterinarians to provide sterilization and vaccinations services for animals adopted out of the city animal shelter. Selection Criteria The RFP established the following grading criteria to be used in evaluating the vendor proposals: Professional Background and Qualifications of Key Personnel (10%) Relative Prices for Services (25%) Previous Experience in Sterilization Program Projects (10%) References of Previous Clients (15%) Capability to Perform All Aspects of Project(20%) Familiarity and Proximity to Project Location (10%) Description and Methodology to be used in Completing Work(10%) After the RFP was released, the city received proposals from four local veterinarians. A selection committee was established to review the proposals and make a recommendation to Council. The members of the committee are: Stephanie Berry, Assistant City Attorney Officer Jim Bryan, Business and Media Relations, Police Lieutenant Scott Fletcher, Operations Bureau, Police Attachment 1 Captain Scott Langford, Operations Bureau, Police Tom Shaw, Purchasing Agent Marilyn Wells, Denton Humane Society Woodie Wilson, Senior Animal Services Officer, Police Officer Jim Bryan and Marilyn Wells are members of the City's Animal Shelter Advisory Board. The selection committee met September 19° 2005 to discuss the evaluation process and the grading criteria. The proposals were disseminated to the committee members. The committee met again September 28, 2005 and ranked each of the four proposals using the grading criteria. The proposals were ranked as follows: 1. Southridge Animal Hospital 2. Animal Hospital on Teasley Lane 3. Animal Hospital on Milam Road 4. Ponder Veterinary Hospital Selected members of the committee toured the facilities of the top two hospitals on October 4, 2005. The full committee held an oral interview of the veterinarians from these two hospitals on October 6, 2005. The committee met again on October 10, 2005 to discuss the top two proposals and each committee member submitted a grade sheet for the top two hospitals. Appendix A provides a complete grading composite. Recommendation The committee believed that both of the top two hospitals offered an excellent proposal that would meet the needs of the shelter. As shown in the scoring composite, the grades for both hospitals were very close on every aspect. However, there were sufficient differences in some key aspects that determined the recommendation of the committee. The committee felt that Southridge Animal Hospital's proposal offered the best overall program for the animal shelter. Dr. Jones and his staff provided a plan that took in to account the needs of the shelter, the hours of operation, and the overall goal of the shelter in terms of adoptions. While the listed prices for Southridge Animal Hospital were higher than those of the Animal Hospital on Teasley, the price included an array of services that the committee believed were necessary. When prices for those same services were calculated into the other proposal, the prices were very competitive. Southridge Animal Hospital has a staff of three veterinarians that ensures sufficient coverage for the shelter adoption program. Further, Southridge proposes to transport the animals from the shelter at their own cost. Because of the staffing limitations of the shelter, this was an important aspect. Finally, Southridge Animal Hospital recognized and committed to fostering a positive communications triangle including the hospital staff, the shelter staff, and the adopter. It was very clear that the staff doctors envisioned the program as more than a contract to make money. The hospital staff recognized the necessity of running a positive program and the potential benefit to the shelter of ensuring a quality adoption process. Their commitment to this type of program was readily apparent in the proposal, during Attachment 1 the tour of the facilities, and in the interviews. The selection committee recommends the Southridge Animal Hospital for the contract to perform sterilization and vaccination services on animals adopted out of the city animal shelter. OPTIONS 1. Council can direct staff to pursue a contract with Southridge Animal Hospital for sterilization and vaccination services for the animal shelter. 2. Council can direct staff to conduct additional research on vendors for these services. RECOMMENDATION Staff recommends pursuing a contract with Southridge Animal Hospital. PRIOR ACTION/REVIEW 02/22/05 — Council Work Session on Animal Services FISCAL IMPACT This adoption program and contract with Southridge Animal Hospital will not have a direct fiscal impact on the city. The cost of the services performed by Southridge Animal Hospital will be passed on to the adopters at the time they select an animal for adoption. Currently, the animal shelter charges a ten-dollar ($10) adoption fee on each adoption. This money serves to help offset the cost of care for the animals in the shelter. It is anticipated that the city will establish a set adoption fee for dogs and cats that is sufficient to cover the potential cost of services performed by Southridge and allow for a moderate amount of income to cover some of the operation costs for the shelter. With the adoption of this new program and contract with Southridge, staff will bring Council a revised adoption ordinance and a related fee ordinance. Respectfully submitted, Charles Wiley Chief of Police Prepared by: Lt. Scott Fletcher Operations Bureau O C; C1 n N M �t n ° N o in tn P QW) n O N co ON q �n 0 Orz O L(l)H O N O u') O kn O O O O "G 00 N ,--, 00 N C6 vn Qn O Ln O C, d, Q O N oQ O O\ 00 N N c� d• N O N O �n v-, 0 01^ �„� 0 0 0 vi NC O O kn N O N o0 C1 00 r Ot N O d• `O O O T rrte�. po a� as N C G C C C C O C C C C O K C ? a 0 0 0 0 0 00 r!1 0 0 0 0 0 0 a n N a O N g N 0 0 O O N O O Q CL ++ M p a� on i •0 � v �, '0 � 6 A4 cu cz ad n`�i o o d aoi o 0 to y � �' � � •Y y Q O � � � •y � � O N cz cc is v v, _ •�. '� 'a •� > y ,4, U cG �q as ,� v� ¢ ¢ a � r� a, G�iA. c� VwA W a, r� wu: VwA ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH THE FIRM OF SOUTHRIDGE ANIMAL HOSPITAL TO PROVIDE STERILIZATION AND RABIES VACCINATION SERVICES FOR THE CITY OF DENTON ANIMAL SERVICES CENTER; AUTHORIZING THE COLLECTION OF FUNDS THEREFOR AS REFLECTED IN THE FEE ORDINANCE;AND PROVIDING AN EFFECTIVE DATE. 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 Southridge Animal Hospital,to provide vaccination, sterilization and related services for the City of Denton Animal Services Program, a copy of which is attached hereto 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 12005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 3-ORD-RFP 3391 THE STATE OF TEXAS § Consulting Services Contract COUNTY OF DENTON § THIS CONTRACT is entered into on this day of 2005, by and between the CITY OF DENTON, TEXAS, a municipal corporation located in Denton County, Texas (hereinafter referred to as "CITY"), acting by and through its City Manager or his designee, and Southridge Animal Hospital(hereinafter referred to as "CONSULTANT"). WITNESSETH: WHEREAS, CITY desires to obtain professional consulting services in connection with the implementation and maintenance of an on-site spay and neuter and rabies vaccination program for dogs and cats (hereinafter referred to as "Services"); and WHEREAS, CONSULTANT is qualified to provide such Services and is willing to undertake such Services for CITY in exchange for fees hereinafter specified; NOW, THEREFORE, THAT IN CONSIDERATION of the covenants and agreements hereinafter contained and subject to the terms and conditions hereinafter stated,the parties hereto do mutually agree as follows: I. Employment of Consultant CONSULTANT will perform as an independent contractor all Services under this Contract to the prevailing professional standards consistent with the level of care and skill ordinarily exercised by members of its profession,both public and private, currently practicing in the same locality under similar conditions, including reasonable, informed judgments and prompt, timely action. If CONSULTANT is representing that it has special expertise in one or more areas to be utilized in this Contract, then CONSULTANT agrees to perform those special expertise services to the appropriate local, regional or national professional standards. II. Scope of Services The scope of services shall also be performed in accordance with the CONSULTANT's proposal which is on file in the office of the Purchasing Agent and incorporated herein as if written word for word. In case of conflict in the language this Contract shall govern and control. Deviations from the scope of services or other provisions of this contract may only be made by written agreement signed by all parties to this Contract. Deliverables: The Consultant is responsible to provide their own computer equipment, and medical supplies, for on-site work. It is the Consultant's responsibility to alert the City's representative, in writing, of any item that has been left out of the RFP prior to awarding the Contract. CONSULTANT shall set his own hours of work and will decide the methods of performing the work. He shall not be instructed by CITY as to how he will perform his services. No training will be provided by CITY for such consulting services. CITY agrees that CONSULTANT shall not be required to work full time for CITY under this agreement. CONSULTANT is free to work for other cities or corporations during the time of this agreement. He may also advertise his services to the public, at his discretion. CONSULTANT shall not undertake any work under this Contract unless given prior authorization to proceed. For each task or project requested by CITY, CITY shall provide the nature and scope of the task or project. CONSULTANT shall then complete the task or project in a prompt and timely manner. The services provided are to conform in every respect to this Contract and the proposal attached to this contract as Attachment 1, (hereinafter referred to as "Proposal"), said document being made a part hereof for all purposes as though written word for word herein; provided, however, that in case of conflict in the language of this contract and the Proposal, the terms and conditions of this contract shall be final and binding on both parties hereto. III. Compensation CITY agrees to pay CONSULTANT for Services performed under this Contract an amount not to exceed as further described below per animal: Dog Sterilization: Female under six months of age $80.00 Female over six months of age Under 50 lbs. $ 95.00 50-80 lbs. $105.00 Over 80 lbs. $115.00 Pregnant $ 10.00 Additional Cost Male under six months of age $ 75.00 Male over six months of age Under 50 lbs. $ 85.00 Over 50 lbs. $ 95.00 Cryptorchidism $ 25.00 Additional Cost Cat Sterilization: Female $ 90.00 Male $ 80.00 Pregnant No Additional Cost Cryptorchidism $ 30.00 Rabies Vaccination: Dog $ 8.00 Cat $ 8.00 payable within thirty days (30) of the receipt of invoices detailing the services rendered to date. Any sums due hereunder which are not paid when due shall bear interest. CONSULTANT shall bear all expenses associated with his services, and shall have an opportunity for profit or loss, depending upon his expenses. If CONSULTANT needs any assistants to help him deliver his services, he shall hire them and be responsible for their compensation. In addition, he shall furnish his own supplies and tools. Deviations from the requirement to provide his own tools and supplies may only be made by written agreement signed by all parties to this Contract. CITY shall not be required to pay any amount in excess of the original proposed amount unless CITY shall have approved in writing in advance (prior to the performance of additional work) the payment of additional amounts. If at any time it becomes evident that the cost estimates provided to CITY will not be sufficient to complete the authorized work, CONSULTANT will immediately notify CITY in writing of said fact. CONSULTANT is an independent contractor; and, therefore, CITY shall not be providing CONSULTANT workers' compensation coverage,vacation time or sick leave. CITY will not be withdrawing from CONSULTANT's compensation withholding taxes, social security taxes, unemployment insurance contributions and payroll taxes. CONSULTANT agrees to make any reports required by State or Federal law of self-employed persons to be made for compliance with the above-referenced programs and tax agencies. IV. Term This Contract shall begin on the date first written above and shall terminate in accordance with CONSULTANT's proposal which provides for a one year period with the option to extend for two additional twelve month periods.. V. Termination CITY or CONSULTANT may terminate this Contract upon thirty (30) days written notice to the other party. Upon receipt of termination notice, CONSULTANT shall stop all work in progress, including subcontracts. CITY shall pay CONSULTANT for all work performed in accordance with the provisions of this Contract prior to the date of termination only. CONSULTANT shall invoice CITY for all work performed within thirty (30) days of termination notice. CITY shall not be responsible for payment of any invoices received after the expiration of thirty (30) days from notice of termination. CITY shall not be responsible for payment of any "termination expenses". Upon expiration or termination of this Contract, CONSULTANT shall promptly return to CITY all related material and any other material that is owned by CITY. Expiration or termination of this Contract shall not relieve CONSULTANT of its obligations under this Contract regarding proprietary or confidential information. VI. Ownership of Documents Any materials and documents prepared or assembled by CONSULTANT under this Contract shall become the sole property of CITY and shall be delivered to CITY, without restriction on future use. This agreement shall not preclude the CONSULTANT developing for itself, or for others, materials which are competitive with those produced as a result of the Services provided hereunder. VII. Right to Inspect Records CONSULTANT agrees that CITY shall have access to and the right to examine any directly pertinent books, documents, papers and records of CONSULTANT involving transactions relating to this Contract. VIII. Indemnity CONSULTANT shall and does hereby agree to indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, loss or liability of any kind, whatsoever, by reason of death or injury to property or third persons which may arise by the negligent act, error or omission of CONSULTANT, its officers, agents, employees, invitees or other persons for whom it is legally liable, with regard to the performance of this Contract, and CONSULTANT will, at its cost and expense, defend, pay on behalf of and protect CITY and its officers, agents and employees against any and all such claims and demands. IX. Independent Contractor CONSULTANT's status shall be that of an Independent Contractor and not an agent, servant, employee or representative of CITY in the performance of this Contract. No term or provision of or act of CONSULTANT or CITY under this Contract shall be construed as changing that status. CONSULTANT will have exclusive control of and the exclusive right to control the details of the work performed hereunder, and shall be liable for the acts and omissions of its officers, agents, employees, Contractors, subcontractors, and consultants, and that the doctrine of respondeat superior shall not apply between CITY and CONSULTANT, its officers, agents, employees, Contractors, subcontractors and consultants, and nothing herein shall be construed as creating a partnership or joint enterprise between CITY and CONSULTANT. X. Insurance The term CONTRACTOR, as used herein, refers to CONTRACTOR, its agents, subcontractors, employees or one authorized to act on behalf of CONTRACTOR. A certificate of insurance shall be filed with CITY naming the CITY OF DENTON, TEXAS, as an additional insured with regard to this con-tract, and evidencing insurance coverage of limits not less than the following: 1. Workers' compensation as required by Texas law, with the policy endorsed to provide a waiver of subrogation as to CITY; Employer's liability insurance of not less than $100,000 for each accident, $100,000 disease- each employee and $500,000 disease — policy limit 2. COMMERCIAL COMPREHENSIVE GENERAL LIABILITY INSURANCE: CONTRACTOR shall obtain, pay for and maintain at all times during the prosecution of the work under this Contract commercial comprehensive general liability insurance. Limits of liability shall be $500,000 per occurrence It is agreed by all parties to this Contract that the insurance required under this Contract shall: (a)be written with the City of Denton as an additional insured on all policies or coverages except Workers' Compensation and Employer's Liability Insurance (b) provide for thirty (30) days notice of cancellation to CITY, for nonpayment of premium, material change or any other cause; (c) be written through companies duly authorized to transact that class of insurance in the State of Texas; (d) waive subrogation rights for loss or damage so that insurers have no right to recovery or subrogation against CITY, it being the intention that the required insurance policies shall protect all parties to the Contract and be primary coverage for all losses covered by the policies; and (e)provide a Certificate of Insurance evidencing the required coverages to: Tom D. Shaw, Purchasing Agent City of Denton 901-B Texas Street Denton, Texas 76209 CITY reserves the right to review the insurance requirements of this section during the effective period of the Contract and to adjust insurance coverages and their limits when deemed necessary by CITY's Risk Manager based upon changes in statutory law, court decisions or the claims history of the industry as well as CONSULTANT. Approval, disapproval or failure to act by CITY regarding any insurance supplied by CONSULTANT shall not relieve CONSULTANT of full responsibility or liability for damages and accidents as set forth in the Contract. Neither shall the insolvency or denial of liability by the insurance company exonerate CONSULTANT from liability. XI. Default If at any time during the term of this Contract, CONSULTANT or CITY shall fail to commence the work in accordance with the provisions of this Contract or fail to diligently provide Services in an efficient, timely and careful manner and in strict accordance with the provisions of this Contract or fail to use an adequate number or quality of personnel to complete the work or fail to perform any of its obligations under this Contract, then the other party shall have the right, if the defaulting party shall not cure any such default after thirty(3 0) days written notice thereof,to terminate this Contract. Any such act by CITY shall not be deemed a waiver of any other right or remedy of CITY. If after exercising any such remedy due to CONSULTANT's nonperformance under this Contract, the cost to CITY of the performance of the balance of the work is in excess of that part of the Contract sum which has not theretofore been paid to CONSULTANT hereunder, CONSULTANT shall be liable for and shall reimburse CITY for such excess. XII. Confidential Information CONSULTANT hereby acknowledges and agrees that its representatives may have access to or otherwise receive information during the furtherance of its obligations in accordance with this Contract, which is of a confidential, non-public or proprietary nature. CONSULTANT shall treat any such information received in full confidence and will not disclose or appropriate for its own use or the use of any third party, at any time during or subsequent to this Contract, such Confidential Information. As used herein, "Confidential Information" means all oral and written information concerning City of Denton, its affiliates and subsidiaries, and all oral and written information concerning the CITY or its activities, which is of a non-public, proprietary or confidential nature, including without limitation, information pertaining to customer lists, services, methods, processes and operating procedures, together with all analyses, compilation, studies or other documents, whether prepared by CONSULTANT or others, which contain or otherwise reflect such information. The term Confidential Information shall not include such materials which are or become generally available to the public other than as a result of disclosure of CONSULTANT, or are required to be disclosed by a governmental authority. XIII. Successors and Assigns CITY and CONSULTANT each binds himself and his successors, executors, administrators and assigns to the other party of this Contract and to the successor, executors, administrators and assigns of such other party in respect to all covenants of this Contract. Neither CITY nor CONSULTANT shall assign or transfer its interest herein without the prior written consent of the other. XIV. Applicable Law This Contract is entered into subject to the Charter and ordinances of CITY as they may be amended from time to time, and is subject to and is to be construed, governed and enforced under all applicable State of Texas and Federal laws. CONSULTANT will make any and all reports required per Federal, State or local law including, but not limited to, proper reporting to the Internal Revenue Service, as required in accordance with CONSULTANT's income. Situs of this Contract is agreed to be Denton County, Texas, for all purposes including performance and execution. XV. Severability If any of the terms, provisions, covenants, conditions or any other part of this Contract are held for any reason to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants, conditions or any other part of this Contract shall remain in full force and effect and shall in no way be affected, impaired or invalidated. XVI. Remedies No right or remedy granted herein or reserved to the parties is exclusive of any other right or remedy herein by law or equity provided or permitted, but each shall be cumulative of every other right or remedy given hereunder. No covenant or condition of this Contract may be waived without consent of the parties. Forbearance or indulgence by either party shall not constitute a waiver of any covenant or condition to be performed pursuant to this Contract. XVII. Entire Agreement This Contract embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporaneous agreements between the parties relating to matters herein, and except as otherwise provided herein, cannot be modified without written agreement of the parties. XVIII. Non-Waiver It is further agreed that one (1) or more instances of forbearance by CITY in the exercise of its rights herein shall in no way constitute a waiver thereof. XIX. Headings The headings of this Contract are for the convenience of reference only and shall not affect in any manner any of the terms and conditions hereof. XXI. Venue The parties to this Contract agree and covenant that this Contract will be enforceable in Denton, Texas; and that if legal action is necessary to enforce this Contract, exclusive venue will lie in Denton County, Texas. XXII. Equal Employment Opportunity CONSULTANT shall not discriminate against any employee or applicant for employment because of race, age, color, religion, sex, ancestry, national origin, place of birth or disability. CONSULTANT shall take affirmative action to ensure that applicants are employed, and that employees are treated during their employment without regard to their race, age, color, religion, sex, ancestry, national origin, place of birth or disability. This action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection of training, including apprenticeship. XXIII Warranties Professional Standards. Consultant warrants that: all Services shall be performed in accordance with applicable professional standards; and Consultant's provision of Services shall comply in all material respects with the description of Services that appear herein(including performance capabilities,characteristics, standards and functions). IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives duly authorized on the day and year first written above. CITY OF DENTON BY: MICHAEL A. CONDUFF, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: CONSULTANT BY: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared , known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of 12005. Notary Public in and for the State of Texas My Commission Expires: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared , known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of 12005. Notary Public in and for the State of Texas My Commission Expires: AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Charles Wiley 349-7925 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive proposals and awarding a contract for the purchase of an automated traffic signal enforcement system; providing for the expenditure of funds therefore; and providing an effective date (RFP 3364-Automated Traffic Signal Enforcement System awarded to Redflex Traffic Systems USA). RFP INFORMATION City Council reviewed this Request for Proposals for Automated Traffic Signal Enforcement System at its October 3, 2005 Work Session. The agenda information sheet that was presented at this meeting is included as Attachment 1. The composite grading sheet, which ranks the two top proposals submitted is included as Attachment 2. RECOMMENDATION Award a contract for operation of the City's Automated Traffic Signal Enhancement Program to Redflex Traffic Systems USA. PRINCIPAL PLACE OF BUSINESS Redflex Traffic Systems USA Culver City, CA ESTIMATED SCHEDULE OF PROJECT This is a three-year contract effective from the date of award or notice to proceed as determined by the City of Denton Purchasing Department. The contract may be renewed for additional one- year periods with all prices, terms, and conditions remaining the same. Agenda Information Sheet November 15, 2005 Page 2 FISCAL INFORMATION Reference Fiscal Impact section of Attachment 1: October 3, 2005 Agenda Information Sheet. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Agenda Sheet from October 3 Council Work Session Attachment 2: Composite Grading Sheet 1-AIS-RFP 3364 Attachment 1 AGENDA INFORMATION SHEET AGENDA DATE: October 3, 2005 DEPARTMENT: Police ACM: Jon Fortune, Assistant City Manager SUBJECT Receive a report, hold a discussion, and give staff direction regarding the vendor selection process for the automated traffic signal enforcement program. BACKGROUND On October 4, 2004 staff made a presentation to Council in work session on the use of automated traffic signal enforcement. On December 7, 2004, Council adopted an ordinance authorizing the use of red light cameras and instructed staff to develop and pursue the project. In December 2004, the Cities of Plano, Richardson, and Frisco joined together and Iaunched an RFP for the purpose of selecting a vendor for red light cameras for their respective cities. The City of Denton attempted to join in with these other cities on their RFP, but due to logistical complications, we were not able to formally join their consortium. However, these three cities openly welcomed our staff to meet with them and observe the RFP process. City staff members attended committee meetings and vendor presentations in January and February 2005. The City of Denton had two possible routes to take in selecting a red light camera vendor: work though existing interlocal agreements and use the vendor selected by the cities of Plano, Richardson, and Frisco; or develop an RFP and seek proposals from red light vendors on our own. City Staff met in March 2005 and decided that the city had more flexibility and better options if we pursued vendors through our own RFP process. As staff began the RFP development, a number of legal challenges were made to the enabling legislation during the Texas Legislature's regular session. None of the challenges passed during the regular session, and an attempt during the first Special Session failed as well. With these legal challenges no longer a threat, the decision was made to move forward with the red light camera RFP. The RFP was developed and released in August 2005. The RFP set out the criteria to be used in selecting a vendor: Back Office Performance (35%), Technology and Hardware (20%), Experience and Qualifications (10%), Project Termination Plan (10%), Overall Cost of the Program (20%), and Overall Project Approach (5%). Each of these sections is explained below. Back Office Performance (35%) Back office performance is the largest section in the grading criteria, carrying the heaviest weight of any single category. Back office performance includes a subsection on evidence, such as the overall quality of photographs and video and the quality of individual violation photographs. It also includes a subsection on processing, covering issues such as the vendor's capability to process those photos and video in a timely manner, the vendor's ability to obtain motor vehicle registration information, the vendor's software and access to both police and violators over the Internet, and the ability to produce violation notices within seven days. Back office performance also includes the vendor's analytical capabilities on captured data, and their public education program. Technology and Hardware Performance (20%) This section covers the issue of what type of cameras the vendor uses and the overall functionality of the camera system. It includes criteria on Detection, Portability, Installation, and Maintenance. Detection involves the vendor's ability to monitor and capture violations on varying lane types and numbers, capture multiple violations during a single light phase, and the type of detection technology the vendor employees. Portability centers on the vendor's ability to provide equipment for up to ten intersections and their capability to provide a "turn key" solution. Installation concerns the vendor's ability to have the system installed within ninety days from the notice to proceed and their use of subcontractors for the project. Finally, Maintenance involves the ability of the vendor to make timely repairs and adjustments on the system within a minimum timeframe of forty-eight hours. Experience and Qualifications (10%) Research into the field of automated traffic signal enforcement provides a clear picture that there have been many companies that entered the field, but many of them have failed to last for very long. There are a number of vendors who have either filed for bankruptcy or were sold to other competitors. This section reviews the experience of the vendor, including the amount of time they have been in business, prior experience with other cities, and the list of references with other projects. Project Termination Plan (10%) Given the recent legal challenges to the enabling legislation at the State level, there is some concern about entering into a long-term contract without some assurance as to what happens if the legislation is later overturned. This section examines the vendor's position on this issue and the city's financial liability in the event there are legal changes that prevent the use of the system. Overall Cost(20%) The RFP asked for a flat rate monthly price per camera. This section examines the monthly rate, the cost of "dummy" systems, and any contractual guarantees regarding cost and performance. Project Approach (5%) This section takes a comprehensive look at the vendor's approach to the city's desired program. Essentially, this section would be scored based on how each vendor compares to the other vendors. After the RFP was released, the city received proposals from five vendors. A red light camera committee was selected to review the proposals and make a recommendation to Council. The members of the committee are: Curt Arndt, Traffic Operations Manager Stephanie Berry, Assistant City Attorney Lieutenant Loyd Burns, Support Bureau, Police Lieutenant Scott Fletcher, Operations Bureau,Police Keith Gabbard, Streets and Drainage Supervisor Captain Scott Langford, Operations Bureau, Police Tom Shaw, Purchasing Agent Scott Wilson, Lead Signal Technician, Traffic Operations The red light camera committee members met September 1, 2005 and discussed the vendor proposals. At this meeting, the committee ranked the five vendors using the grading criteria from the RFP. The vendors were ranked as follows: 1. Redflex 2. ATS 3. Nestor 4. Peek 5. Lasercraft The top two vendors were invited to make a one-hour oral presentation to the committee. These presentations were made on September 12, 2005. The committee contacted reference cities provided by these two vendors. The committee met again following the presentations and each committee member submitted a grade sheet for the top two vendors. A breakdown of the top two vendors is provided below. A full composite grade sheet is attached in appendix A. Redflex Redflex currently has more than 480 operational systems in the United States, including programs in Chicago, 1L and Scottsdale, AZ. Redflex was recently awarded contracts with the cities of Plano, Richardson, Frisco. They have the capability to process more than 140,000 violations a month. They have a proven track record of running the type of program the City of Denton is looking to employ. They utilize a non-invasive video detection system and employ multiple digital cameras and a video camera to capture violations. They provide a twelve second video of each violation—six seconds before and after each violation. They indicate a willingness to customize much of their program to suit the individual needs of their customer. Their system also provides a live feed that can be used to monitor traffic problems. They provide a fully automated traffic statistics program for use by their customers without the need to request specific reports. Every reference city provided by Redflex expressed their complete satisfaction with the product and the company. Each of these cities, despite the wide variations in the number of cameras systems they have in operation, praised the level of customer service, the work of the company during the design and installation process, and the overall performance of the camera systems. Each of these reference cities have been working with Redflex for at least a year, and several have been operational for a number of years. Two of the five reference cities contacted offered that they have recently extended the Redflex contract or are in the process of expanding the Redflex program. Several staff members of the reference cities stated that Redflex far exceeded their expectations in every area of the program. One city administrator commented that Redflex was the best vendor, in any capacity,that he had worked with throughout the city. Finally, Redflex offers a guaranteed contract to the city. They will adjust the monthly pricing of our system to ensure that there is no net loss — thus preventing the need to supplement the red light camera program with the city's budget. They also have an advantageous project termination plan. In the event the red light program becomes untenable due to legislative changes or judicial rulings, Redflex will terminate the program at no cost to us. Further, should the city become dissatisfied with the program's performance, Redflex will terminate the program without cost to the city. In either case, Redflex will return the affected intersections to their original operating condition. ATS ATS has been involved in photo enforcement programs for a number of years. They were recently partnered with Mulvihill, another photo enforcement company. They have since acquired Mulvihill. ATS has a number of red light camera contracts, including programs in New York, NY and Philadelphia, PA. ATS uses non-invasive video detection and provides high-resolution digital still photographs. They also offer a ten second video clip of each violation. For an additional monthly fee, ATS can provide additional (non violation) cameras for a full video view of an enforcement intersection. ATS offers statistical reports to the city to audit the operation and effectiveness of the red light camera program. Several of the reference cities provided by ATS expressed complete satisfaction with the program. However, none of these cities appear to be operating the complete system that ATS proposes to the City of Denton. In New York, ATS operates the camera system. However,NY City officials conduct all of the back office work on processing and issuing violation notices and the collection of payments. It is also notable that the NY City officials consistently referred to Mulvihill and their staff when speaking of the program assets. Finally, ATS stated in their proposal that they were set to install an additional 50 cameras in NY City by September 2005.NY City staff stated that they were supportive of adding cameras to their system. Unfortunately, due to existing State legislative restrictions, they could not add any cameras to their system without changes to the enabling legislation at the State level. In Philadelphia, city staff members were more than pleased with their system and the performance of ATS. By law,Pennsylvania requires the use of 35mm wet film. Therefore, Philadelphia could not provide any feedback on the digital camera system performance. The third reference provided was Scottsdale, AL Redflex also listed this city as a reference. ATS operated the red light camera program in Scottsdale from 1996 — 1999, when they sold their red light camera business contracts to Redflex. One final issue with references came up with the city of Ft. Collins, CO. This city was listed in the ATS proposal on a reference list of "key programs under development, or delivered and operated by many of the same team members being proposed to the City of Denton". When contacted, Ft. Collins officials stated that they have a red light camera program being run by Redflex and were not aware of any relationship to ATS. In terms of program costs, ATS offers a very competitive monthly rate for their camera systems. However, ATS requires some additional payments for some services that have the potential to inflate the monthly cost. The installation of the four-way video system, as stated above, would add more than one hundred dollars each month per intersection. The monthly rate offered only includes registration information from Texas. There is an additional per violation charge to look up and retrieve out-of-state license plate/registration data. ATS offers a no-cost termination plan in the event of a legislative change that prohibits the use of red light cameras. They do not offer a no-cost termination for any other reason. Finally, ATS does not offer a contract guarantee for the performance of the program. Should the income from paid violations fail to cover the monthly cost of the camera systems, the city would be liable to make up the price difference. The company president did make such an offer during his oral presentation in response to a question, but this guarantee was not provided in writing with the original proposal. Recommendation Based on the information in the written and oral presentations, along with the comments provided by other cities using these companies, the red light camera committee unanimously recommends Redflex as the vendor for the City of Denton Automated Traffic Signal Enforcement Program. Redflex scored higher in every category on every committee member's grading sheet. (See Attachment 1) OPTIONS 1. Council can direct staff to pursue a contract with Redflex as the vendor for the city's Automated Traffic Signal Enforcement Program. 2. Council can direct staff to conduct additional research on vendors for the city's Automated Traffic Signal Enforcement Program. RECOMMENDATION Staff recommends pursuing a contract with Redflex for the city's Automated Traffic Signal Enforcement Program. PRIOR ACTION/REVIEW 10/04/04—Council Work Session on Red Light Cameras. 12/07/04—Council adoption of Red Light Camera Ordinance. FISCAL IMPACT Should Council approve the recommendation of Redflex as the vendor for the program, there will be a fairly minimal impact on the city budget. Because Redflex offers a guaranteed contract, there should be no additional cost to the city from the contract with Redflex. Should the program produce any revenue above the monthly cost of the contract, the existing ordinance provides for the revenue to be deposited in a "Public Safety"account. This account is dedicated to expenditures for the operation of the camera program and can only be used for this purpose or to fund specific public safety programs and improvements, such as signal/intersection improvements, Iaw enforcement traffic enforcement programs, and other related activities. Regardless of which vendor is selected, the city is responsible for establishing a part time Hearing Officer to listen to appeals of citizens who receive violation notices. Revenues, as stated above, could cover this Hearing Officer position, as it is part of the overall program. However, this position is not included in the vendor contract. As such, it is not covered by the contract guarantee provided by Redflex. The city is obligated to fund this position in the event there are not sufficient revenues to pay for it. ATTACHMENT I. Composite Grading Sheet Respectfully submitted, Charles Wiley Chief of Police Prepared by: Lt. Scott Fletcher Operations Bureau en fq wM4000v. �, t aawMnn `° � n t� kn v co n N '" In c n kin Ln w O O N ,� In O k 0, W) M iy en O 0 0 0 N vy a M N N M m O b N �. _ N M °° d N N N m oo n M 4-J tnoa o n on n o 43 to N N QI M n 00 3 �rr1 y/}..yy.� 1%4 Y Y 0 o a o a a. Q u a 0 � � a o V „ � 0 0 0 0 a'O W� 0 0 0 0 O ! O 0 0 0 0 0 0 0 0 0 0 0 0 0 ,.kt;4' CC�Cd R .S+ L 42 c� cl Cl tC � v o to z O y u y O u G H V d sue, � ^' Ct �� WFw � Od, E-€ d aaHwwOaH ORDINANCE. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A BEST VALUE ANNUAL CONTRACT FOR OPERATION OF AN AUTOMATED TRAFFIC SIGNAL ENFORCEMENT PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 3364-AUTOMATED TRAFFIC SIGNAL ENFORCEMENT SYSTEM AWARDED TO REDFLEX TRAFFIC SYSTEMS USA). WHEREAS, the City has heretofore solicited, received, and tabulated competitive best value bids, for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and the City of Denton, Texas ordinances; and WHEREAS, the City Manager or a designated employee of the City with authority, have reviewed and recommended that the herein described bids are the best value bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore based on the selection criteria set forth in the requests for bids; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and conclusions set forth in the preamble of this ordinance are incorporated within the body of the ordinance. SECTION 2. The options in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, is hereby accepted and approved as being the best value bid for such items: RFP NUMBER DESCRIPTION VENDOR AMOUNT 3364 Automated Traffic Signal Redflex Traffic Systems USA Fee Structure Enforcement Program Inc. in Contract SECTION 3. By the acceptance and approval of the above items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION 4. The City Manager is hereby authorized to execute any and all necessary written contracts for the performance of the services in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with and relating to the items specified in Section 1, which written contract(s) shall be attached hereto; provided that the written contract is in accordance with the above Request to Submit Bids, Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 5. 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 6. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 4-ORD-RFP 3364 AGREEMENT BETWEEN THE CITY OF DENTON AND REDFLEX TRAFFIC SYSTEMS, INC. FOR PHOTO RED LIGHT ENFORCEMENT PROGRAM This Agreement (this "Agreement") is made as of this _day of(insert month), 2005 by and between Redflex Traffic Systems, Inc. with offices at 6047 Bristol Parkway 1St Floor, Culver City, California 90230 ("Redflex"), and The City of Denton, a municipal corporation,with offices at 215 E. McKinney, Denton, Texas 76201, (the "Customer"). RECITALS WHEREAS, Redflex has exclusive knowledge, possession and ownership of certain equipment, licenses, applications, and citation processes related to digital photo red light enforcement systems; and WHEREAS, the Customer desires to engage the services of Redflex to provide certain equipment, processes and back office services so that sworn police officers of the Customer are able to monitor, identify and enforce red light running violations as prescribed under Ordinance No.2004-389 (Insert ordinance 4); and WHEREAS, it is a mutual objective of both Redflex and the Customer to reduce the incidence of vehicle collisions at the traffic intersections and city streets that will be monitored pursuant to the terms of this Agreement. NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other valuable consideration received, the receipt and sufficiency of which are hereby acknowledged,the parties agree as follows: AGREEMENT 1. 0Q7AITI0,1VS In this Agreement, the words and phrases below shall have the following meanings: I.I. "Authorized Officer" means the Police Project Manager or such other individual(s) as the Customer shall designate to review Potential Violations and to authorize the Issuance of Citations in respect thereto, and in any event, a sworn police officer. 1.2. "Authorized Violation" means each Potential Violation in the Violation Data for which authorization to issue a citation in the form of an Electronic Signature is given by the Authorized Officer by using the Redflex System. 1.3. "Citation" means the notice of a Violation, which is mailed or otherwise delivered by Redflex to the violator on the appropriate Enforcement Documentation in respect of each Authorized Violation. 1.4. "Confidential or Private Information" means, with respect to any Person, any information, matter or thing of a secret, confidential or private nature, whether or not so labeled, which is connected with such Person's business or methods of operation or concerning any of such Person's suppliers, licensors, licensees, customers or others with whom such Person has a business relationship, and which has current or potential value to such Person or the unauthorized 1 disclosure of which could be detrimental to such Person, including but not limited to: 1.4.1. Matters of a business nature, including but not limited to information relating to development plans, costs, finances, marketing plans, data, procedures, business opportunities, marketing methods, plans and strategies, the costs of construction, installation, materials or components, the prices such Person obtains or has obtained from its clients or customers, or at which such Person sells or has sold its services; and 1.4.2. Matters of a technical nature, including but not limited to product information, trade secrets, know-how, formulae, innovations, inventions, devices, discoveries,techniques, formats,processes, methods, specifications, designs, patterns, schematics, data, access or security codes, compilations of information, test results and research and development projects. For purposes of this Agreement,the term "trade secrets" shall mean the broadest and most inclusive interpretation of trade secrets. 1.4.3. Notwithstanding the foregoing, Confidential Information will not include information that: (i)was generally available to the public or otherwise part of the public domain at the time of its disclosure, (ii)became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission by any party hereto in breach of this Agreement, (iii)was subsequently lawfully disclosed to the disclosing party by a person other than a party hereto, (iv) was required by an opinion of the Texas Attorney General or by a court of competent jurisdiction to be described, or(v)was required by applicable state law to be described. 1.5. "Designated Intersection Approaches" means the Intersection Approaches set forth on Exhibit A attached hereto, and such additional Intersection Approaches as Redflex and the Customer shall mutually agree from time to time. 1.6. "Electronic Signature,, means the method through which the Authorized Officer indicates his or her approval of the issuance of a Citation in respect of a Potential Violation using the Redflex System. 1.7. "Enforcement Documentation" means the necessary and appropriate documentation related to the Photo Red Light Enforcement Program, including but not limited to warning letters, citation notices (using City specifications), a numbering sequence for use on all citation, instructions to accompany each issued Citation (including in such instructions a description of basic adjudication procedures, payment options and information regarding the viewing of images and data collected by the Redflex System), chain of custody records, criteria regarding operational policies for processing Citations (including with respect to coordinating with the Department of Motor Vehicles), and technical support documentation for adjudication personnel . 1.8. "Equipment" means any and all cameras, sensors, equipment, components, products, software and other tangible and intangible property relating to the Redflex Photo Red Light System(s), including but not limited to all camera systems,housings, radar units, severs and poles. 2 1.9. "`Fine" means a monetary sum assessed for Citation, but excluding suspended fines. 1.10. "Governmental Authority" means any domestic or foreign government, governmental authority, court, tribunal, agency or other regulatory, administrative or judicial agency, commission or organization, and any subdivision, branch or department of any of the foregoing. 1.11. "Installation Date of the Photo Red Light Program" means the date on which Redflex completes the construction and installation of at least one (1) Intersection Approach in accordance with the terms of this Agreement so that such Intersection Approach is operational for the purposes of functioning with the Redlight Photo Enforcement Program. 1.12. "Intellectual Propert y" means, with respect to any Person, any and all now known or hereafter known tangible and intangible (a) rights associated with works of authorship throughout the world, including but not limited to copyrights, moral rights and mask-works, (b) trademark and trade name rights and similar rights, (c) trade secrets rights, (d) patents, designs, algorithms and other industrial property rights, (e) all other intellectual and industrial property rights (of every kind and nature throughout the universe and however designated), whether arising by operation of law, contract, license, or otherwise, and (f) all registrations, initial applications, renewals, extensions, continuations, divisions or reissues hereof now or hereafter in force (including any rights in any of the foregoing), of such Person. 1.13. "Intersection Approach" means a conduit of travel with up to four (4) contiguous lanes from the curb (e.g., northbound, southbound, eastbound or westbound) on which at least one (1) system has been installed by Redflex for the purposes of facilitating Redlight Photo Enforcement by the Customer. 1.14. "Operational Period" means the period of time during the Term, commencing on the Installation Date, during which the Photo Red Light Enforcement Program is functional in order to permit the identification and prosecution of Violations at the Designated City Streets and Intersection Approaches by a sworn police officer of the Customer and the issuance of Citations for such approved Violations using the Redflex System. 1.15. "Person" means a natural individual, company, Governmental Authority, partnership, firm, corporation, legal entity or other business association. 1.16. "Police Project Manager" means the project manager appointed by the Customer in accordance with this Agreement, which shall be a sworn police officer and shall be responsible for overseeing the installation of the Intersection Approaches and the implementation of the Redlight Photo Enforcement Program, and which manager shall have the power and authority to make management decisions relating to the Customer's obligations pursuant to this Agreement, including but not limited to change order authorizations, subject to any limitations set forth in the Customer's charter, city code or other organizational documents of the Customer or by the city council or other governing body of the Customer. 1.17. "Potential Violation" means, with respect to any motor vehicle passing through a Designated City Street and/or Intersection Approach,the data collected 3 by the Redflex System with respect to such motor vehicle, which data shall be processed by the Redflex System for the purposes of allowing the Authorized Officer to review such data and determine whether a Red Light Violation has occurred. 1.18. "Proprietary Propert y" means, with respect to any Person, any written or tangible property owned or used by such Person in connection with such Person's business, whether or not such property is copyrightable or also qualifies as Confidential Information, including without limitation products, samples, equipment, files, lists, books, notebooks, records, documents, memoranda, reports, patterns, schematics, compilations, designs, drawings, data, test results, contracts, agreements, literature, correspondence, spread sheets, computer programs and software, computer print outs, other written and graphic records and the like,whether originals, copies, duplicates or summaries thereof, affecting or relating to the business of such Person, financial statements, budgets, projections and invoices. 1.19. "Redflex Marks" means all trademarks registered in the name of Redflex or any of its affiliates, such other trademarks as are used by Redflex or any of its affiliates on or in relation to Photo Red Light Enforcement at any time during the Term this Agreement, service marks, trade names, logos, brands and other marks owned by Redflex,and all modifications or adaptations of any of the foregoing. 1.20. "Redflex Project Manager" means the project manager appointed by Redflex in accordance with this Agreement, which project manager shall initially be (insert name), or such person as Redflex shall designate by providing written notice thereof to the Customer from time to time, who shall be responsible for overseeing the construction and installation of the Designated Intersection Approaches and the implementation the Photo Red Light Enforcement Program, and who shall have the power and authority to make management decisions relating to Redflex's obligations pursuant to this Agreement, including but not limited to change-order authorizations. 1.21. "Redflex Photo Red Light System" means, collectively, the SmartCamTM System, the SmartOpsTM System, the Redlight Photo Enforcement Program, and all of the other equipment, applications, back office processes and digital red light traffic enforcement cameras, sensors, components, products, software and other tangible and intangible property relating thereto. 1.22. "Photo Red Light Enforcement Program" means the process by which the monitoring, identification and enforcement of Violations is facilitated by the use of certain equipment, applications and back office processes of Redflex, including but not limited to cameras, flashes, central processing units, signal controller interfaces and detectors (whether loop, radar or video loop) which, collectively, are capable of measuring Violations and recording such Violation data in the form of photographic images of motor vehicles. 1.23. "Photo Redlight Violation Criteria" means the standards and criteria by which Potential Violations will be evaluated by sworn police officers of the Customer, which standards and criteria shall include, but are not limited to, the duration of time that a traffic light must remain red prior to a Violation being deemed to have occurred, and the location(s) in an intersection which a motor 4 vehicle must pass during a red light signal prior to being deemed to have committed a Violation, all of which shall be in compliance with all applicable laws, rules and regulations of Governmental Authorities. 1.24. "SmartCamTM System" means the proprietary digital redlight photo enforcement system of Redflex relating to the Photo Red Light Enforcement Program. 1.25. "SmartOpsTM System" means the proprietary back-office processes of Redflex relating to the Photo Red Light Enforcement Program. 1.26. "SmartSceneTM System" means the proprietary digital video camera unit, hardware and software required for providing supplemental violation data. 1.27. "Traffic Signal Controller Boxes" means the signal controller interface and detector, including but not limited to the radar or video loop, as the case may be. 1.28. "Violation" means any traffic violation contrary to the terms of the Vehicle Code or any applicable rule, regulation or law of any other Governmental Authority, including but not limited to operating a motor vehicle contrary to traffic signals, and operating a motor vehicle without displaying a valid license plate or registration. 1.29. "Violations Data"means the images and other Violations data gathered by the Redflex System at the Designated City Streets and/or Intersection Approaches. 1.30. "Warning Period" means the period that only warning notices and not citations for violations shall be sent during the 30 day period commencing with the installation of a traffic-control signal monitoring device. 1.31. 2. TERW The term of this Agreement shall commence as of the date hereof and shall continue for a period of three (3) years after the Installation Date (the "Initial Term"). The Customer shall have the right, but not the obligation, to extend the term of this Agreement for up to three (3) additional consecutive and automatic one (1) year periods following the expiration of the Initial Term (each, a "Renewal Term" and collectively with the Initial Term, the "Term"). The Customer may exercise the right to extend the term of this Agreement for a Renewal Term by providing written notice to Redflex not less than thirty(3 0) days prior to the last day of the Initial Term or the Renewal Term, as the case may be. 3. SERVECES Redflex shall provide the Photo Red Light Enforcement Program to the Customer, in each case in accordance with the terms and provisions set forth in this Agreement. 3.1. INSTALLATION. With respect to the construction and installation of (1) the Designated Intersection Approaches and the installation of the Redflex System at such Designated Intersection Approaches, the Customer and Redflex shall have the respective rights and obligations set forth on Exhibit B attached hereto. 3.2. MAINTENANCE. With respect to the maintenance of the Redflex System at the Designated Intersection Approaches the Customer and Redflex shall have the respective rights and obligations set forth on Exhibit C attached hereto. 5 3.3. VIOLATION PROCESSING. During the Operational Period, Violations shall be processed as follows: 3.3.1. All Violations Data shall be stored on the Redflex System; 3.3.2. The Redflex System shall process Violations Data gathered from the Designated City Streets and/or Intersection Approaches into a format capable of review by the Authorized Officer via the Redflex System; 3.3.3. The Redflex System shall be accessible by the Authorized Officer through a virtual private network in encrypted format by use of a confidential password on any computer equipped with a high-speed internet connection and a web browser; 3.3.4. Redflex shall provide the Authorized Officer with access to the Redflex System for the purposes of reviewing the pre-processed Violations Data within four (4) days of the gathering of the Violation Data from the applicable Designated City Streets and/or Intersection Approaches 3.3.5. The Customer shall cause the Authorized Officer to review the Violations Data and to determine whether a citation shall be issued with respect to each Potential Violation captured within such Violation Data, and transmit each such determination in the form of an Electronic Signature to Redflex using the software or other applications or procedures provided by Redflex on the Redflex System for such purpose, and REDFLEX HEREBY ACKNOWLEDGES AND AGREES THAT THE DECISION TO ISSUE A CITATION SHALL BE THE SOLE, UNILATERAL AND EXCLUSIVE DECISION OF THE AUTHORIZED OFFICER AND SHALL BE MADE IN SUCH AUTHORIZED OFFICER'S SOLE DISCRETION (A "CITATION DECISION"), AND IN NO EVENT SHALL REDFLEX HAVE THE ABILITY OR AUTHORIZATION TO MAKE A CITATION DECISION; 3.3.6. With respect to each Authorized Violation, Redflex shall print and mail a Citation within two (2) days after Redflex's receipt of such authorization; provided, however, during the Warning Period, warning violation notices shall be issued in respect of all Authorized Violations; 3.3.7. Redflex shall provide a toll-free telephone number for the purposes of answering citizen inquiries. 3.3.8. Redflex shall permit the Authorized Officer to generate monthly reports using the Redflex Standard Report System. 3.3.9. Upon Redflex's receipt of a written request from the Customer and in addition to the Standard Reports, Redflex shall provide, without cost to the Customer, reports regarding the processing and issuance of Citations, the maintenance and downtime records of the Designated Intersection Approaches and the functionality of the Redflex System with respect thereto to the Customer in such format and for such periods as the Customer may reasonably request; provided, however, Redflex shall not be obligated to provide in excess of six (6) such reports in any given twelve (12) month period without cost to the Customer; 3.3.10. Upon the Customer's receipt of a written request from Redflex, the Customer shall provide, without cost to Redflex, reports regarding the 6 prosecution of Citations and the collection of fines, fees and other monies in respect thereof in such format and for such periods as Redflex may reasonably request; provided, however, the Customer shall not be obligated to provide in excess of six (6) such reports in any given twelve (12) month period without cost to Redflex; 3.3.11. During the six (6) month period following the Installation Date and/or upon Redflex's receipt of a written request from the Customer at least fourteen (14) calendar days in advance of the adjudication proceeding, Redflex shall provide expert witnesses for use by the Customer in prosecuting Violations; provided, however, the Customer shall use reasonable best efforts to seek judicial notice in lieu of requiring Redflex to provide such expert witnesses; and 3.3.12. During the three (3) month period following the Installation Date, Redflex shall provide such training to police personnel as shall be reasonably necessary in order to allow such personnel to act as expert witnesses on behalf of the Customer with respect to the Redlight Enforcement Program. 3.4. PROSECUTION AND COLLECTION; COMPENSATION. The Customer shall diligently prosecute Citations and the collection of all Fines in respect thereof, and Redflex shall have the right to receive, and the Customer shall be obligated to pay,the compensation set forth on Exhibit D attached hereto. 3.5. OTHER RIGHTS AND OBLIGATIONS. During the Term, in addition to all of the other rights and obligations set forth in this Agreement, Redflex and the Customer shall have the respective rights and obligations set forth on Exhibit E attached hereto. 3.6. CHANGE ORDERS. The Customer may from time to time request changes to the work required to be performed or the addition of products or services to those required pursuant to the terms of this Agreement by providing written notice thereof to Redflex, setting forth in reasonable detail the proposed changes (a "Change Order Notice"). Upon Redflex's receipt of a Change Order Notice, Redflex shall deliver a written statement describing the effect, if any, the proposed changes would have on the pricing terms set forth in Exhibit D (the "Change Order Proposal"), which Change Order Proposal shall include (i) a detailed breakdown of the charge and schedule effects, (ii) a description of any resulting changes to the specifications and obligations of the parties, (iii) a schedule for the delivery and other performance obligations, and (iv) any other information relating to the proposed changes reasonably requested by the Customer. Following the Customer's receipt of the Change Order Proposal, the parties shall negotiate in good faith and agree to a plan and schedule for implementation of the proposed changes, the time, manner and amount of payment or price increases or decreases, as the case may be, and any other matters relating to the proposed changes; provided, however, in the event that any proposed change involves only the addition of equipment or services to the existing Designated Intersection Approaches, Designated City Vehicles, or the addition of Intersection Approaches to be covered by the terms of this Agreement, to the maximum extent applicable, the pricing terms set forth in Exhibit D shall govern. Any failure of the parties to reach agreement with 7 respect to any of the foregoing as a result of any proposed changes shall not be deemed to be a breach of this Agreement, and any disagreement shall be resolved in accordance with Section 10. Q LIC'47yVS'47;RES ,47fONOF"Cf 7S 4.1. License. Subject to the terms and conditions of this Agreement, Redflex hereby grants the Customer, and the Customer hereby accepts from Redflex upon the terms and conditions herein specified, a non-exclusive, non-transferable license during the Term of this Agreement to: (a) solely within the City of(insert name), access and use the Redflex System for the sole purpose of reviewing Potential Violations and authorizing the issuance of Citations pursuant to the terms of this Agreement, and to print copies of any content posted on the Redflex System in connection therewith, (b) disclose to the public (including outside of the City of (insert name) that Redflex is providing services to the Customer in connection with Photo Red Light Enforcement Program pursuant to the terms of this Agreement, and (c) use and display the Redflex Marks on or in marketing, public awareness or education, or other publications or materials relating to the Photo Red Light Enforcement Program, so long as any and all such publications or materials are approved in advance by Redflex. 4.2. RESERVATION OF RIGHTS. The Customer hereby acknowledges and agrees that: (a) Redflex is the sole and exclusive owner of the Redflex System, the Redflex Marks, all Intellectual Property arising from or relating to the Redflex System, and any and all related Equipment, (b) the Customer neither has nor makes any claim to any right, title or interest in any of the foregoing, except as specifically granted or authorized under this Agreement, and (c) by reason of the exercise of any such rights or interests of Customer pursuant to this Agreement, the Customer shall gain no additional right,title or interest therein. 4.3. RESTRICTED USE. The Customer hereby covenants and agrees that it shall not (a) make any modifications to the Redflex System, including but not limited to any Equipment, (b) alter, remove or tamper with any Redflex Marks, (c) use any of the Redflex Marks in any way which might prejudice their distinctiveness, validity or the goodwill of Redflex therein, (d)use any trademarks or other marks other than the Redflex Marks in connection with the Customer's use of the Redflex System pursuant to the terms of this Agreement without first obtaining the prior consent of Redflex, or(e) disassemble, de-compile or otherwise perform any type of reverse engineering to the Redflex System, the Redflex System, including but not limited to any Equipment, or to any, Intellectual Property or Proprietary Property of Redflex, or cause any other Person to do any of the foregoing. 4.4. PROTECTION OF RIGHTS. Redflex shall have the right to take whatever action it deems necessary or desirable to remedy or prevent the infringement of any Intellectual Property of Redflex, including without limitation the filing of applications to register as trademarks in any jurisdiction any of the Redflex Marks, the filing of patent application for any of the Intellectual Property of Redflex, and making any other applications or filings with appropriate Governmental Authorities. The Customer shall not take any action to remedy or prevent such infringing activities, and shall not in its own name make any 8 registrations or filings with respect to any of the Redflex Marks or the Intellectual Property of Redflex without the prior written consent of Redflex. 4.5. INFRINGEMENT. The Customer shall use its reasonable best efforts to give Redflex prompt notice of any activities or threatened activities of any Person of which it becomes aware that infringes or violates the Redflex Marks or any of Redflex's Intellectual Property or that constitute a misappropriation of trade secrets or act of unfair competition that might dilute, damage or destroy any of the Redflex Marks or any other Intellectual Property of Redflex. Redflex shall have the exclusive right, but not the obligation, to take action to enforce such rights and to make settlements with respect thereto. In the event that Redflex commences any enforcement action under this Section 4.5, then the Customer shall render to Redflex such reasonable cooperation and assistance as is reasonably requested by Redflex, and Redflex shall be entitled to any damages or other monetary amount that might be awarded after deduction of actual costs; provided, that Redflex shall reimburse the Customer for any reasonable costs incurred in providing such cooperation and assistance. 4.6. INFRINGING USE. The Customer shall give Redflex prompt written notice of any action or claim action or claim, whether threatened or pending, against the Customer alleging that the Redflex Marks, or any other Intellectual Property of Redflex, infringes or violates any patent, trademark, copyright, trade secret or other Intellectual Property of any other Person, and the Customer shall render to Redflex such reasonable cooperation and assistance as is reasonably requested by Redflex in the defense thereof, provided, that Redflex shall reimburse the Customer for any reasonable costs incurred in providing such cooperation and assistance. If such a claim is made and Redflex determines, in the exercise of its sole discretion, that an infringement may exist, Redflex shall have the right, but not the obligation, to procure for the Customer the right to keep using the allegedly infringing items, modify them to avoid the alleged infringement or replace them with non-infringing items. S. REPRESE1VW4TIONSf4"W,4RRf41VTIES 5.1. Redflex Representations and Warranties. 5.1.1. Authoritv. Redflex hereby warrants and represents that it has all right, power and authority to execute and deliver this Agreement and perform its obligations hereunder. 5.1.2. Professional Services. Redflex hereby warrants and represents that any and all services provided by Redflex pursuant to this Agreement shall be performed in a professional and workmanlike manner and, with respect to the installation of the Redflex System, subject to applicable law, in compliance with all specifications provided to Redflex by the Customer. 5.2. Customer Representations and Warranties. 5.2.1. Authoritv. The Customer hereby warrants and represents that it has all right, power and authority to execute and deliver this Agreement and perform its obligations hereunder. 5.2.2. Professional Services. The Customer hereby warrants and represents that any and all services provided by the Customer pursuant to this Agreement shall be performed in a professional and workmanlike manner. 9 5.3. LIMITED WARRANTIES. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, REDFLEX MAKES NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,WITH RESPECT TO THE REDFLEX SYSTEM OR ANY RELATED EQUIPMENT OR WITH RESPECT TO THE RESULTS OF THE CUSTOMER'S USE OF ANY OF THE FOREGOING NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREIN, REDFLEX DOES NOT WARRANT THAT ANY OF THE DESIGNATED INTERSECTION APPROACHES OR THE REDFLEX SYSTEM WILL OPERATE IN THE WAY THE CUSTOMER SELECTS FOR USE, OR THAT THE OPERATION OR USE THEREOF WILL BE UNINTERRUPTED. THE CUSTOMER HEREBY ACKNOWLEDGES THAT THE REDFLEX SYSTEM MAY MALFUNCTION FROM TIME TO TIME, AND SUBJECT TO THE TERMS OF THIS AGREEMENT, REDFLEX SHALL DILIGENTLY ENDEAVOR TO CORRECT ANY SUCH MALFUNCTION IN A TIMELY MANNER. 6. T�RIYIINfITION. 6.1. TERMINATION FOR CAUSE: Either party shall have the right to terminate this Agreement immediately by written notice to the other if(i) state statutes are amended to prohibit or substantially change the operation of photo red light enforcement systems; (ii) any court having jurisdiction over City rules, or state or federal statute declares, that results from the Redflex System of photo red light enforcement are inadmissible in evidence; or (iii) the other party commits any material breach of any of the provisions of this Agreement. Either party shall have the right to remedy the cause for termination(Sec 6.1)within forty-five (45) calendar days (or within such other time period as the Customer and Redflex shall mutually agree, which agreement shall not be unreasonably withheld or delayed) after written notice from the non-causing party setting forth in reasonable detail the events of the cause for termination. 6.2. The rights to terminate this Agreement given in this Section 6.1 shall be without prejudice to any other right or remedy of either party in respect of the breach concerned(if any)or any other breach of this Agreement. 6.3. PROCEDURES UPON TERMINATION. The termination of this Agreement shall not relive either party of any liability that accrued prior to such termination. Except as set forth in Section 6.3, upon the termination of this Agreement, all of the provisions of this Agreement shall terminate and: 6.3.1. Redflex shall (i) immediately cease to provide services, including but not limited to work in connection with the construction or installation activities and services in connection with the Photo Red Light Enforcement Program, (ii) promptly deliver to the Customer any and all Proprietary Property of the Customer provided to Redflex pursuant to this Agreement, (iii) promptly deliver to the Customer a final report to the Customer regarding the collection of data and the issuance of Citations in such format and for such 10 periods as the Customer may reasonably request, and which final report Redflex shall update or supplement from time to time when and if additional data or information becomes available, (iv) promptly deliver to Customer a final invoice stating all fees and charges properly owed by Customer to Redflex for work performed and Citations issued by Redflex prior to the termination, and (v)provide such assistance as the Customer may reasonably request from time to time in connection with prosecuting and enforcing Citations issued prior to the termination of this Agreement. 6.3.2. The Customer shall (i) immediately cease using the Photo Red Light Enforcement Program, accessing the Redflex System and using any other Intellectual Property of Redflex, (ii) promptly deliver to Redflex any and all Proprietary Property of Redflex provided to the Customer pursuant to this Agreement, and (iii) promptly pay any and all fees, charges and amounts properly owed by Customer to Redflex for work performed and Citations issued by Redflex prior to the termination. 6.3.3. Unless the Customer and Redflex have agreed to enter into a new agreement relating to the Photo Red Light Enforcement Program or have agreed to extend the Term of this Agreement, Redflex shall remove any and all Equipment or other materials of Redflex installed in connection with Redflex's performance of its obligations under this Agreement, including but not limited to housings, poles and camera systems, and Redflex shall restore the Designated City Vehicles and Designated Intersection Approaches to substantially the same condition such Designated Intersection Approaches were in immediately prior to this Agreement. 6.4. SURVIVAL. Notwithstanding the foregoing, the definitions and each of the following shall survive the termination of this Agreement: (x) Sections 4.2 (Reservation of Rights), 5.1 (Redflex Representations and Warranties), 5.2 (Customer Representations and Warranties), 5.3 (Limited Warranty), 7 (Confidentiality), 8 (Indemnification and Liability), 9 (Notices), 10 (Dispute Resolution), 11.1 (Assignment), 11.17 (Applicable Law), 11.16 (Injunctive Relief, Specific Performance) and 11.18 (Jurisdiction and Venue), and (y) those provisions, and the rights and obligations therein, set forth in this Agreement which either by their terms state, or evidence the intent of the parties, that the provisions survive the expiration or termination of the Agreement, or must survive to give effect to the provisions of this Agreement. 7. CM jWEVF"1ZTY. During the term of this Agreement and for a period of three (3) years thereafter, neither party shall disclose to any third person, or use for itself in any way for pecuniary gain, any Confidential Information learned from the other party during the course of the negotiations for this Agreement or during the Term of this Agreement. Upon termination of this Agreement, each party shall return to the other all tangible Confidential Information of such party. Each party shall retain in confidence and not disclose to any third party any Confidential Information without the other party's express written consent, except (a) to its employees who are reasonably required to have the Confidential Information, (b) to its agents, representatives, attorneys and other professional advisors that have a need to know such Confidential Information, provided that such parties undertake in writing (or are 11 otherwise bound by rules of professional conduct) to keep such information strictly confidential, and (c) pursuant to, and to the extent of, a request or order by any Governmental Authority, including laws relating to public records. 8. IND�11TNIFICfITIONfINDLIfIBILITY. 8.1. Indemnification by Redflex. Subject to Section 8.3 and 8.4, Redflex hereby agrees to defend and indemnify the Customer and its managers, officers, directors, employees, agents, representatives and successors, permitted assignees, or any of them (individually a "Customer Party" and collectively, the "Customer Parties") against, and to protect, save and keep harmless the Customer Parties from, and to pay on behalf of or reimburse the Customer Parties as and when incurred for, any and all liabilities, obligations, losses, damages, penalties, demands, claims, actions, suits, judgments, settlements, costs, expenses and disbursements (including reasonable attorneys', accountants' and expert witnesses' fees) of whatever kind and nature (collectively, "Losses"), which may be imposed on or incurred by any Customer Party arising out of or related to (a) any material misrepresentation, inaccuracy or breach of any covenant, warranty or representation of Redflex contained in this Agreement, or (b) negligence and/or omissions or the willful misconduct of Redflex, its employees or agents, subcontractors or contract laborers performing services under the agreement which result in death or bodily injury to any natural person (including third parties) or any damage to any real or tangible personal property (including the personal property of third parties), except to the extent caused by the subcontractors or contract laborers performing services under this Agreement willful misconduct of any Customer Party. 8.2. Indemnification by Customer. Subject to Section 8.3 and 8.4, and to the extent allowed by law and without waiving any rights, defenses or immunities provided to it by the Texas Tort Claims Act or other applicable law including, without limitation, the defense of governmental or immunity, the Customer hereby agrees to defend and indemnify Redflex and its managers, officers, directors, employees, agents, representatives and successors, permitted assignees or any of them (individually a "Redflex Party" and collectively, the "Redflex Parties") against, and to protect, save and keep harmless the Redflex Parties from, and to pay on behalf of or reimburse the Redflex Parties as and when incurred for, any and all Losses which may be imposed on or incurred by any Redflex Party arising out of or in any way related to (a) any material misrepresentation, inaccuracy or breach of any covenant, warranty or representation of the Customer contained in this Agreement, (b) the negligence and/or omissions of the Customer, its employees, officers or agents which result in death or bodily injury to any natural person (including third parties) or any damage to any real or tangible personal property (including the personal property of third parties), except to the extent caused by the willful misconduct of any Redflex Party, (c) any claim, action or demand not caused by Redflex's failure to perform its obligations under this Agreement, or(d) any claim, action or demand challenging the Customer's use of the Redflex System or any portion thereof, the validity of the results of the Customer's use of the Redflex System or any portion thereof, or 12 the validity of the Citations issued, prosecuted and collected as a result of the Customer's use of the Redflex System or any portion thereof. 8.3. Indemnification Procedures. In the event any claim, action or demand (a "Claim") in respect of which any party hereto seeks indemnification from the other, the party seeking indemnification (the "Indemnified Party") shall give the party from whom indemnification is sought (the "Indemnifying Party") written notice of such Claim promptly after the Indemnified Party first becomes aware thereof, provided, however, that failure so to give such notice shall not preclude indemnification with respect to such Claim except to the extent of any additional or increased Losses or other actual prejudice directly caused by such failure. The Indemnifying Party shall have the right to choose counsel to defend such Claim (subject to the approval of such counsel by the Indemnified Party, which approval shall not be unreasonably withheld, conditioned or delayed), and to control, compromise and settle such Claim, and the Indemnified Party shall have the right to participate in the defense at its sole expense; provided, however, the Indemnified Party shall have the right to take over the control of the defense or settlement of such Claim at any time if the Indemnified Party irrevocably waives all rights to indemnification from and by the Indemnifying Party. The Indemnifying Party and the Indemnified Party shall cooperate in the defense or settlement of any Claim, and no party shall have the right enter into any settlement agreement that materially affects the other party's material rights or material interests without such party's prior written consent, which consent will not be unreasonably withheld or delayed. 8.4. Limited Liability. Notwithstanding anything to the contrary in this Agreement, neither party shall be liable to the other, by reason of any representation or express or implied warranty, condition or other term or any duty at common or civil law, for any indirect, incidental, special, lost profits or consequential damages, however caused and on any theory of liability arising out of or relating to this Agreement. It is further agreed that if a claim or liability should arise from the joint or concurring negligence of both parties hereto, it should be borne by them comparatively in accordance with the laws of the State of Texas. Neither this Section nor any other portion of this agreement shall be construed as, or shall create any, rights for any persons or entities who are not a party to this agreement. 9. NOTICES Any notices to be given hereunder shall be in writing, and shall be deemed to have been given (a) upon delivery, if delivered by hand, (b)three (3) days after being mailed first class, certified mail, return receipt requested, postage and registry fees prepaid, or (c) one Business Day after being delivered to a reputable overnight courier service, excluding the U.S. Postal Service, prepaid, marked for next day delivery, if the courier service obtains a signature acknowledging receipt, in each case addressed or sent to such party as follows: 9.1. Notices to Redflex: Redflex Traffic Systems, Inc. 15020 North 74th Street Scottsdale,AZ 85260 13 Attention: Ms. Karen Finley Facsimile: (480) 607-5552 9.2. Notices to the Customer: City of Denton Attention: City Manager 215 E, McKinney Denton, Texas 76201 Facsimile: (940) 349-8596 10.MSPt7FC RESO1t7FfO,1V Upon the occurrence of any dispute or disagreement between the parties hereto arising out of or in connection with any term or provision of this Agreement, the subject matter hereof, or the interpretation or enforcement hereof (the "Dispute"), the parties shall engage in informal, good faith discussions and attempt to resolve the Dispute. In connection therewith, upon written notice of either party, each of the parties will appoint a designated officer whose task it shall be to meet for the purpose of attempting to resolve such Dispute. The designated officers shall meet as often as the parties shall deem to be reasonably necessary. Such officers will discuss the Dispute. If the parties are unable to resolve the Dispute in accordance with this Section 10, and in the event that either of the parties concludes in good faith that amicable resolution through continued negotiation with respect to the Dispute is not reasonably likely,then the parties may mutually agree to submit to binding or nonbinding arbitration or mediation. 11.11TISCELLfINEOIls 11.1. ASSIGNMENT. Neither party may assign all or any portion of this Agreement without the prior written consent of the other,which consent shall not be unreasonably withheld or delayed; provided, however, The Customer hereby acknowledges and agrees that the execution (as outlined in Exhibit F), delivery and performance of Redflex's rights pursuant to this Agreement shall require a significant investment by Redflex, and that in order to finance such investment, Redflex may be required to enter into certain agreements or arrangements ("Financing Transactions") with equipment lessors, banks, financial institutions or other similar persons or entities (each, a "Financial Institution" and collectively, "Financial Institutions"). The Customer hereby agrees that Redflex shall have the right to assign, pledge, hypothecate or otherwise transfer ("Transfer") its rights, or any of them, under this Agreement to any Financial Institution in connection with any Financing Transaction between Redflex and any such Financial Institution, subject to the Customer's prior written approval, which approval shall not be unreasonably withheld or delayed. The Customer further acknowledges and agrees that in the event that Redflex provides written notice to the Customer that it intends to Transfer all or any of Redflex's rights pursuant to this Agreement, and in the event that the Customer fails to provide such approval or fails to object to such Transfer within forty-five (45) business days after its receipt of such notice from Redflex, for the purposes of this Agreement, the Customer shall be deemed to have consented to and approved such Transfer by Redflex. Notwithstanding the above,this Agreement shall inure 14 to the benefit of, and be binding upon, the parties hereto, and their respective successors or assigns. 11.2. "SPEED ENFORCEMENT" The Customer and Redflex agree that should legislation or local ordinance be enacted to enable the photo enforcement of speed within the city, and the city requires this capability for public safety then the city will have the option to extend this contract to include additional terms for photo enforcement of speed within the city. 11.3. RELATIONSHIP BETWEEN REDFLEX AND THE CUSTOMER. Nothing in this Agreement shall create, or be deemed to create, a partnership, joint venture or the relationship of principal and agent or employer and employee between the parties. The relationship between the parties shall be that of independent contractors, and nothing contained in this Agreement shall create the relationship of principal and agent or otherwise permit either party to incur any debts or liabilities or obligations on behalf of the other party(except as specifically provided herein). 11.4. AUDIT RIGHTS. Each of parties hereto shall have the right to audit to audit the books and records of the other party hereto (the "Audited Party") solely for the purpose of verifying the payments, if any, payable pursuant to this Agreement. Any such audit shall be conducted upon not less than forty-eight (48) hours' prior notice to the Audited Party, at mutually convenient times and during the Audited Party's normal business hours. Except as otherwise provided in this Agreement, the cost of any such audit shall be borne by the non-Audited Party. In the event any such audit establishes any underpayment of any payment payable by the Audited Party to the non-Audited Party pursuant to this Agreement,the Audited Party shall promptly pay the amount of the shortfall, and in the event that any such audit establishes that the Audited Party has underpaid any payment by more than twenty five percent (25%) of the amount of actually owing, the cost of such audit shall be borne by the Audited Party. In the event any such audit establishes any overpayment by the Audited Party of any payment made pursuant to this Agreement,non-Audited Party shall promptly refund to the Audited Party the amount of the excess. 11.5. FORCE MAJEURE. Neither party will be liable to the other or be deemed to be in breach of this Agreement for any failure or delay in rendering performance arising out of causes beyond its reasonable control and without its fault or negligence. Such causes may include but are not limited to, acts of God or the public enemy, terrorism, significant fires, floods, earthquakes, epidemics, quarantine restrictions, strikes, freight embargoes, or Governmental Authorities approval delays which are not caused by any act or omission by Redflex, and unusually severe weather. The party whose performance is affected agrees to notify the other promptly of the existence and nature of any delay. 11.6. ENTIRE AGREEMENT. This Agreement represents the entire Agreement between the parties, and there are no other agreements (other than invoices and purchase orders), whether written or oral, which affect its terms. This Agreement may be amended only by a subsequent written agreement signed by both parties. 15 11.7. SEVERABILITY. If any provision of this Agreement is held by any court or other competent authority to be void or unenforceable in whole or part, this Agreement shall continue to be valid as to the other provisions thereof and the remainder of the affected provision. 11.8. WAIVER. Any waiver by either party of a breach of any provision of this Agreement shall not be considered as a waiver of any subsequent breach of the same or any other provision thereof. 11.9. CONSTRUCTION Except as expressly otherwise provided in this Agreement, this Agreement shall be construed as having been fully and completely negotiated and neither the Agreement nor any provision thereof shall be construed more strictly against either party. 11.10. HEADINGS. The headings of the sections contained in this Agreement are included herein for reference purposes only, solely for the convenience of the parties hereto, and shall not in any way be deemed to affect the meaning, interpretation or applicability of this Agreement or any term, condition or provision hereof. 11.11. EXECUTION AND COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and such counterparts together shall constitute only one instrument. Any one of such counterparts shall be sufficient for the purpose of proving the existence and terms of this Agreement, and no party shall be required to produce an original or all of such counterparts in making such proof. 11.12. COVENANT OF FURTHER ASSURANCES. All parties to this Agreement shall, upon request, perform any and all acts and execute and deliver any and all certificates, instruments and other documents that may be necessary or appropriate to carry out any of the terms, conditions and provisions hereof or to carry out the intent of this Agreement. 11.13. REMEDIES CUMULATIVE. Each and all of the several rights and remedies provided for in this Agreement shall be construed as being cumulative and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other remedy. 11.14. BINDING EFFECT. This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective executors, administrators, successors and permitted assigns. 11.15. COMPLIANCE WITH LAWS. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and whenever there is a conflict between any term, condition or provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail, but in such event the term, condition or provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, provided that such construction is consistent with the intent of the Parties as expressed in this Agreement. 16 11.16. NO THIRD PARTY BENEFIT. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any Person who is not a party to this Agreement. 11.17. INJUNCTIVE RELIEF; SPECIFIC PERFORMANCE. The parties hereby agree and acknowledge that a breach of Sections 4.1 (License), 4.3 (Restricted Use) or 7 (Confidentiality) of this Agreement would result in severe and irreparable injury to the other party, which injury could not be adequately compensated by an award of money damages, and the parties therefore agree and acknowledge that they shall be entitled to injunctive relief in the event of any breach of any material term, condition or provision of this Agreement, or to enjoin or prevent such a breach, including without limitation an action for specific performance hereof. 11.18. APPLICABLE LAW. This Agreement shall be governed by and construed in all respects solely in accordance with the laws of the State of Texas United States. 11.19. JURISDICTION AND VENUE. Any dispute arising out of or in connection with this Agreement shall be submitted to the exclusive jurisdiction and venue of the courts located in the County of Denton and both parties specifically agree to be bound by the jurisdiction and venue thereof. I2 MOST f4VORED WFfON CL4&SE If during the term of this contract Redflex should enter into any agreement with another municipality within the greater Dallas metropolitan area for photo red light enforcement upon terms and conditions more favorable than those granted to Customer, Reflex agrees to modify this contract to include such favorable terms if so requested by Customer. (The remainder of this page is left intentionally blank) 17 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first set forth above. CITY OF DENTON,TEXAS BY: MICHAEL A. CONDUFF, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDEER- CITY ATTORNEY BY: —� � REDFLEX TRAFFIC SYSTEMS, INC. BY: 18 EXHIBIT"A" Designated Intersection Approaches The contract is for the implementation of up to 10 intersections. Identification of enforced intersection will be based on mutual agreement between Redflex and the City as warranted by community safety and traffic needs. 19 EXHIBIT`B" Construction and Installation Obligations Timeframe for Installation: Fixed Photo Red Light System Redflex will have each specified intersection installed and activated in phases in accordance with an implementation plan to be mutually agreed to by Redflex Traffic Systems and the Municipality. Redflex will use reasonable commercial efforts to install the system in accordance with the schedule set forth in the implementation plan that will be formalized upon project commencement. Redflex will use reasonable commercial efforts to install and activate the first specified intersection within the first forty-five (45) days subsequent to formal project kick-off. The Municipality agrees that the estimated timeframe for installation and activation are subject to conditions beyond the control of Redflex and are not guaranteed. In order to provide the client with timely completion of the photo enforcement project Redflex Traffic Systems requires that the City assist with providing timely approval of City permit requests. The City acknowledges the importance of the safety program and undertakes that in order to keep the project on schedule the customer is to provide city engineers review of Redflex permit requests and all documentation within a two business days. Redflex will also review and correct if necessary any redlines with in two business days. Permits need to be received within five business days of first submittal in order to implement the program in a timely manner. 1. Redflex Obligations. Redflex shall do or cause to be done each of the following (in each case,unless otherwise stated below, at Redflex's sole expense): I.I. Appoint the Redflex Project Manager and a project implementation team consisting of between one (1) and four (4) people to assist the Redflex Project Manager; 1.2. Request current "as-built" electronic engineering drawings for the Designated Intersection Approaches (the "Drawings") from the city traffic engineer; 1.3. Develop and submit to the Customer for approval construction and installation specifications in reasonable detail for the Designated Intersection Approaches, including but not limited to specifications for all radar sensors, pavement loops, electrical connections and traffic controller connections, as required; and 1.4. Seek approval from the relevant Governmental Authorities having authority or jurisdiction over the construction and installation specifications for the Designated Intersection Approaches (collectively, the "Approvals"), which will include compliance with City permit applications. 1.5. Finalize the acquisition of the Approvals; 1.6. Submit to the Customer a public awareness strategy for the Customer's consideration and approval, which strategy shall include media and educational materials for the Customer's approval or amendment(the "Awareness Strategy"); 1.7. Develop the Redlight Violation Criteria in consultation with the Customer; 20 1.8. Develop the Enforcement Documentation for approval by the Customer, which approval shall not be unreasonably withheld; 1.9. Complete the installation and testing of all necessary Equipment, including hardware and software, at the Designated Intersection Approaches (under the supervision of the Customer); 1.10. Cause an electrical sub-contractor to complete all reasonably necessary electrical work at the Designated Intersection Approaches, including but not limited to the installation of all related Equipment and other detection sensors, poles,cabling,telecommunications equipment and wiring,which work shall be performed in compliance with all applicable local, state and federal laws and regulations; 1.11. Install and test the functionality of the Designated Intersection Approaches with the Redflex System and establish fully operational Violation processing capability with the Redflex System; 1.12. Implement the use of the Redflex System at each of the Designated Intersection Approaches; 1.13. Deliver the Materials to the Customer; and 1.14. Issue citation notices for Authorized Violations; 1.15. Redflex shall provide training (i) for up to fifteen (15) personnel of the Customer, including but not limited to the persons who Customer shall appoint as Authorized Officers and other persons involved in the administration of the Redlight Photo Enforcement Program, (ii) for at least sixteen (16) hours in the aggregate, (iii) regarding the operation of the Redflex System and the Redlight Photo Enforcement Program, which training shall include training with respect to the Redflex System and its operations, strategies for presenting Violations Data in administrative adjudication hearing proceedings and a review of the Enforcement Documentation; 1.16. Interact with administrative adjudication hearing personnel to address issues regarding the implementation of the Redflex System,the development of a subpoena processing timeline that will permit the offering of Violations Data in adjudication proceedings, and coordination between Redflex, the Customer and adjudication personnel; and 1.17. Provide reasonable public relations resources and media materials to the Customer in the event that the Customer elects to conduct a public launch of the Redlight Photo Enforcement Program. 1.18. Setup processes to collect payments from citizens on Notice of Violation using a local mailing address in the Dallas metropolitan area and establish a relationship with a collection agency to pursue any unpaid citations 1.19. Citation processing and citation re-issuance 2. CUSTOMER OBLIGATIONS. The Customer shall do or cause to be done each of the following (in each case, unless otherwise stated below, at Customer's sole expense): 2.1.1. Appoint the Police Project Manager; Provide an Administrative Hearing Officer to preside over Appeals Hearing for the City. 2.1.2. Assist Redflex in obtaining the Drawings from the relevant Governmental Authorities; 21 2.1.3. Notify Redflex of any specific requirements relating to the construction and installation of any Intersection Approaches or the implementation of the Redlight Photo Enforcement Program; 2.1.4. Provide assistance to Redflex in obtaining access to the records data of the Department of Motor Vehicles in Redflex's capacity as an independent contractor to the Customer;and 2.1.5. Assist Redflex in seeking the Approvals 2.1.6. Provide reasonable access to the Customer's properties and facilities in order to permit Redflex to install and test the functionality of the Designated Intersection Approaches and the Redlight Photo Enforcement Program; 2.1.7. Provide reasonable access to the personnel of the Customer and reasonable information about the specific operational requirements of such personnel for the purposes of performing training; 2.1.8. Seek approval or amendment of Awareness Strategy and provide written notice to Redflex with respect to the quantity of media and program materials (the "Materials") that the Customer will require in order to implement the Awareness Strategy during the period commencing on the date on which Redflex begins the installation of any of the Designated Intersection Approaches and ending one (1) month after the Installation Date; 2.1.9. Assist Redflex in developing the Redlight Violation Criteria; and 2.1.10. Seek approval of the Enforcement Documentation. 22 Exhibit"E" Additional Rights and Obligations Redflex and the Customer shall respectively have the additional rights and obligations set forth below: 1. Redflex shall assist the Customer in public information and education efforts, including but not limited to the development of artwork for utility bill inserts, press releases and schedules for any public launch of the Redlight Photo Enforcement Program (actual print and production costs are the sole responsibility of the Customer). 2. Redflex shall be solely responsible for installing such Signage. The Customer shall be solely responsible for the fabrication of any signage, notices or other postings required pursuant to any law, rule or regulation of any Governmental Authority ("Signage"), including but not limited to the Vehicle Code, and shall assist in determining the placement of such Signage. 3. The Redflex Project Manager and the Police Project Manager shall meet on a weekly basis during the period commencing as of the date of execution hereof and ending on the Installation Date, and on a monthly basis for the remainder of the Term, at such times and places as the Redflex Manager and the Customer Manager shall mutually agree. 4. The Customer shall not access the Redflex System or use the Redlight Photo Enforcement Program in any manner other than prescribe by law and which restricts or inhibits any other Person from using the Redflex System or the Redflex Photo Enforcement Program with respect to any Intersection Approaches constructed or maintained by Redflex for such Person, or which could damage, disable, impair or overburden the Redflex System or the Redflex Photo Enforcement Program, and the Customer shall not attempt to gain unauthorized access to (i)any account of any other Person, (ii) any computer systems or networks connected to the Redflex System, or (iii) any materials or information not intentionally made available by Redflex to the Customer by means of hacking, password mining or any other method whatsoever, nor shall the Customer cause any other Person to do any of the foregoing. 5. The Customer shall maintain the confidentiality of any username, password or other process or device for accessing the Redflex System or using the Redlight Photo Enforcement Program. 6. Each of Redflex and the Customer shall advise each other in writing with respect to any applicable rules or regulations governing the conduct of the other on or with respect to the property of such other party, including but not limited to rules and regulations relating to the safeguarding of confidential or proprietary information, and when so advised, each of Redflex and the Customer shall obey any and all such rules and regulations. 7. The Customer shall promptly reimburse Redflex for the cost of repairing or replacing any portion of the Redflex System, or any property or equipment related thereto, damaged directly or indirectly by the Customer, or any of its employees, contractors or agents. 25 Insurance 1. During the Term, Redflex shall procure and maintain and Redflex's sole cost and expense the following insurance coverage with respect to claims for injuries to persons or damages to property which may arise from or in connection with the performance of work or services pursuant to this Agreement by Redflex, and each of Redflex's subcontractors, agents, representatives and employees: 2. Commercial General Liability Insurance. Commercial General Liability Insurance with coverage of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for bodily injury and property damage; 3. Commercial Automobile Liability Insurance. Commercial Automobile Liability Insurance with coverage of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for bodily injury or property damage, including but not limited to coverage for all automobiles owned by Redflex,hired by Redflex, and owned by third parties; 4. Professional Liability (Errors and Omissions) Insurance. Redflex will use its commercial best efforts to procure and maintain Professional Liability(Errors and Omissions) Insurance with coverage of not less than One Million Dollars ($1,000,000)per occurrence and in the aggregate. 5. Workers' Compensation and Employer's Liability Insurance. Workers' Compensation Insurance with coverage of not less than the limits required by the Labor Code of the State of (insert name), Employer's Liability Insurance with coverage of not less than One Million Dollars ($1,000,000)per occurrence. 6. With respect to the insurance described in the foregoing Section of this Exhibit E, any deductibles or self-insured retentions must be declared to and approved by the Customer, and any changes to such deductibles or self-insured retentions during the Term must be approved in advance in writing by the Customer. 7. With respect to the Commercial General Liability Insurance the following additional provisions shall apply: 8. The Customer Parties shall be covered as additional insureds with respect to any liability arising from any act or omission of any Redflex Parties on the premises upon which any such Redflex Parties may perform services pursuant to this Agreement, and such coverage shall contain no special limitations on the scope of protection afforded to such additional insureds. 9. The insurance coverage procured by Redflex and described above shall be the primary insurance with respect to the Customer Parties in connection with this Agreement, and any insurance or self-insurance maintained by any of the (insert name) shall be in excess, and not in contribution to, such insurance. 10. Any failure to comply with the reporting provisions of the various insurance policies described above shall not affect the coverage provided to the (insert names), and such insurance policies shall state the such insurance coverage shall apply separately with respect to each additional insured against whom any claim is made or suit is brought, except with respect to the limits set forth in such insurance policies. 11.With respect to the insurance described in the foregoing Section of this Exhibit E, each such insurance policy shall be endorsed to state that the coverage provided thereby shall not be cancelled except after thirty (30) calendar days' prior written 26 notice to the Customer. If any of the Redflex Parties are notified by any insurer that any insurance coverage will be cancelled, Redflex shall immediately provide written notice thereof to the Customer and shall take all necessary actions to correct such cancellation in coverage limits, and shall provide written notice to the Customer of the date and nature of such correction. If Redflex, for any reason, fails to maintain the insurance coverage required pursuant to this Agreement, such failure shall be deemed a material breach of this Agreement, and the Customer shall have the right,but not the obligation and exercisable in its sole discretion, to either (i) terminate this Agreement and seek damages from Redflex for such breach, or (ii) purchase such required insurance, and without further notice to Redflex, deduct from any amounts due to Redflex pursuant to this Agreement, any premium costs advance by the Customer for such insurance. If the premium costs advanced by the Customer for such insurance exceed any amounts due to Redflex pursuant to this Agreement, Redflex shall promptly remit such excess amount to the Customer upon receipt of written notice thereof. 12. Redflex shall provide certificates of insurance evidencing the insurance required pursuant to the terms of this Agreement, which certificates shall be executed by an authorized representative of the applicable insurer, and which certificates shall be delivered to the Customer prior to Redflex commencing any work pursuant to the terms of this Agreement. 27 Exhibit F FORM OF ACKNOWLEDGMENT AND CONSENT This Acknowledgement and Consent,dated as of , 2005, is entered into by and between the City of (the "City") and Redflex Traffic Systems, Inc., ("Redflex"),with reference to the [Agreement for Automated Red Light Photo Enforcement Cameras], dated as of by and between the City and Redflex(the "Agreement"). 1. Redflex has entered into a Credit Agreement, dated as of August 3, 2004 (the "Harris-Redflex Credit Agreement"),with Harris Trust and Savings Bank(the "Bank"),pursuant to which the Bank has provided certain working capital credit facilities to Redflex. Such credit facilities will provide Redflex the working capital that it needs to perform its obligations to the City under the Agreement. 2. Pursuant to the Harris-Redflex Credit Agreement, Redflex has granted Harris a security interest in all of Redflex's personal property as collateral for the payment and performance of Redflex's obligations to the Bank under the Harris-Redflex Credit Agreement. Such security interest applies to and covers all of Redflex's contract rights, including,without limitation, all of Redflex's rights and interests under the Agreement. 3. Redflex will not,by virtue of the Harris-Redflex Credit Agreement,be relieved of any liability or obligation under the Agreement, and the Bank has not assumed any liability or obligation of Redflex under the Agreement. 4. The City hereby acknowledges notice of, and consents to, Redflex's grant of such security interest in favor of the Bank in all of Redflex's rights and interests under the Agreement pursuant to the Harris-Redflex Credit Agreement. 5. The City further acknowledges and agrees that this Acknowledgement and Consent shall be binding upon the City and shall inure to the benefit of the successors and assigns of the Bank and to any replacement lender which refinances Redflex's obligations to the Bank under the Harris-Redflex Credit Agreement. IN WITNESS WHEREOF,the City and Redflex have caused this Acknowledgement and Consent to be executed by their respective duly authorized and elected officers as of the date first above written. .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................... The City: Redflex: [Name of City] REDFLEX TRAFFIC SYSTEMS, INC. By: By: Name: Name: Title: Title: :...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................: 28 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Janet Fitzgerald 349-8274 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive proposals and awarding a contract for the purchase of fencing materials for the Lake Forest Dog Park; providing for the expenditure of funds therefore; and providing an effective date (RFP 3402-Lake Forest Dog Park Fencing awarded to Hurricane Fence in the amount of$25,144.48). BID INFORMATION This bid is for the fencing materials and supplies for perimeter and cross fencing of the approximately 3-acre Lake Forest Dog Park. The vinyl coated galvanized chain link fencing was chosen for longevity, safety, and appearance. The Park Maintenance Division will install the fencing and gates at considerable savings to the City. RECOMMENDATION Award to Hurricane Fence in the amount of$25,144.48 PRINCIPAL PLACE OF BUSINESS Hurricane Fence Denton, TX ESTIMATED SCHEDULE OF PROJECT The Parks Maintenance staff is scheduled to complete installation of the fence by March 2006. FISCAL INFORMATION This item will be funded from Parks account 400041440.1365.40100. Agenda Information Sheet November 15, 2005 Page 2 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AIS-Bid 3402 2 0c ( z \ � - - > ] 4 ( / � \ / e § � } \ \ 0 \ / \ > ) $ _ _ _ _ _ _ 00 0 4 b § - _'IT - _ > - 2 ( z ƒ \ > / } ® ® \ ® ® \ < ) \ k n § \ � / ® _ � ® _ \ 00 / Q & ) P D (9 k -1 / m ( \ \ \ f § 5 � � - - \ % / - ) � R I 6 -C ) k I ) \ [ ) ] § 3 : § j / cu 0) $ ° \ k ) /\ \ � 3f 2 _ o e \ u § /> ( -2 (d 0 § } 3 w d) f � / 3 ) \ \§ a u / \ cu< < § b § j k \ } \ \ 04 2 2 2 k k 2 LU w w ° < $ ® f f R < 2 a 0 z « ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF FENCING MATERIALS FOR THE LAKE FOREST DOG PARK; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 3402-LAKE FOREST DOG PARK FENCING AWARDED TO HURRICANE FENCE IN THE AMOUNT OF $25,144.48). WHEREAS,the City has solicited,received and tabulated competitive bids for the purchase of necessary materials,equipment, supplies or services in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; and WHEREAS,the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials,equipment, supplies,or services, shown in the'Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER VENDOR AMOUNT 3402 Hurricane Fence $25,144.48 SECTION 2. By the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to pur- chase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations,Bid Proposals, and related documents. SECTION 3. Should the City and the winning bidder(s)wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids,the City Manager or his designated representative is hereby authorized to execute a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. 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-ORD-Bid 3402 2 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Tax ACM: Jon Fortune SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an amended 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 On September 7, 2005, the Denton County Historical Commission, Inc. was awarded a contract totaling $12,500 funded by Hotel Occupancy Taxes for the 2006 program year. The approved contract allows for advertising dollars to be expended in the promotion of the John B. Denton Days event. In addition, the agency was to receive quarterly installments of the Hotel Occupancy Tax Funds. In order to actively engage advertising opportunities, the agency has requested to receive the funds in one lump sum during the first quarter of the program year (January 2006). PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed this request and recommends that the contract be amended. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $12,500 for FY 2005-2006 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Chief Financial Officer CI DOCUME-.11cadicklLOCAIS-11Temp1DCHC amended.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED 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 amended 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 TORNEY r AMENDED 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 HISTORICAL 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 1/o); 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 §351.101(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; and WHEREAS, DCHC has requested amendment of a prior agreement, in order to enable payment of hotel taxes as a lump sum, and such request is acceptable to CITY as satisfactory of the purposes to be achieved; 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) As used in this Agreement, the following terms shall have the following specific meanings: AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 1 (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 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 quart er" 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 31St 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 a fixed contract amount of Twelve Thousand Five Hundred Dollars ($12,500) as a lump sum, from hotel tax receipts. 1.3 Dates of Payments. (a) The amount specified in 11.2, above, shall be paid as a lump sum on or before January 25, 2006. 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 currant contract period. Any future funding is solely the responsibility of DCHC. (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. AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 2 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 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 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(#), 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) DCHC agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE §351.101(f) and §351.108 (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 T$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 "X) 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 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) 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 AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 3 this Agreement. DCHC 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. DCHC shall maintain 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 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, DCHC shall make such financial 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. GOVT 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 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., 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 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. AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 4 (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 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 J¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. (c) Further, upon termination pursuant to 14.2(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 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; 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 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 DCHC; (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; (c) The continuation of a 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 breaching 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 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 AMENDED HOT Funds PY2006 Denton County Historical Commission-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 X143 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 12.1 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 tax 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 its operations and performance of services hereunder, and such persons, entities, or organizations performing 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 OFFICERS,AGENTS,AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES,DAMAGE,LOSS, OR LIABILITY OF WHATEVER HIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY DCHC 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 DCHC, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. DCHC 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: AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 6 CITY DCHC City Manager Denton County Historical Commission, Inc. City of Denton ATTN: Tom Reedy 215 E.McKinney 110 W. Hickory St. Denton,TX 76201 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 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 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.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 ($100,0001$500,0001$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. AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 7 EXECUTED this day of 52005. THE CITY OF DENTON, TEXAS By: EULINE BROCK,MAYOR ATTEST: APPROVED AS TO LEGAL FORM: By: JENNIFER WALTERS, EDWIN M. SNYDE CITY SECRETARY CITY ATTORNEY DENTON COUNTY HISTORICAL COMMISSION, INC. By: ATTEST: APPROVED AS TO LEGAL FORM: By: By: Secretary AMENDED HOT Funds PY2006 Denton County Historical Commission-Page 8 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Airport and Transportation O erations ACM: Howard Martin, 349-8232 SUBJECT Consider the adoption of an ordinance of the City of Denton, Texas terminating that certain Airport lease dated November 2, 2004, by and between the City of Denton, Texas and Terrence Jarog; authorizing the City Attorney or his designee to take appropriate legal action, if necessary, to effectuate the termination; and providing an effective date. (The Airport Advisory Board unanimously recommends approval, 5-0.) BACKGROUND Mr. Terrence Jarog has indicated that he will not meet the obligations of the lease agreement dated November 2, 2004. Airport management is agreeable the termination of the lease agreement as it would allow the property to be used for other development opportunities. PRIOR ACTION/REVIEW The City Attorney has reviewed the lease termination and the Airport Advisory Board recommends approval of the proposed cancellation 5-0. Staff recommends approval of the termination of the lease agreement. FISCAL INFORMATION The Jarog lease agreement required an annual land lease payment of$334.80 dollars. EXHIBITS 1. Ordinance Respectfully submitted: Mark Nelson, Director Chief Transportation Official SAOur Documents\Ordina= 051Jarog termination-doe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS TERMINATING THAT CERTAIN AIRPORT LEASE DATED NOVEMBER 2, 2004, 13Y AND BETWEEN THE CITY OF DENTON, TEXAS AND TERENCE JAROG; AUTHORIZING THE CITY ATTORNEY OR HIS DESIGNEE TO TAKE APPROPRIATE LEGAL ACTION, IF NECESSARY, TO EFFECTUATE THE TERMINATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas (the "City") and Terence Jarog (the "Lessee") entered into that certain Airport Lease Agreement dated November 2, 2004 (the "Lease Agreement"); and whereby the City leased to the Lessee for aviation purposes an approximate 2,790 square feet of land which are more particularly described in the Lease Agreement by reference (the"Leased Property"); and WHEREAS, pursuant to the Lease Agreement, the Lessee has the duty and obligation to pay rental in the amount of$27.90 per month for the Leased Property beginning on December 1, 2004 (the"Rent"); and WHEREAS, the Lessee's obligation to pay the rent is a material obligation of the Lessee under the Lease Agreement; and WHEREAS,no payment of the rent has been made to date; and WHEREAS, on September 6, 2005, the Lessee was given written notice that he was in default under the Lease Agreement for non payment of rent and other breaches of the Lease, given 30 days to correct the condition of default or the Lease would be terminated which is attached hereto as Exhibit "A" and incorporated herein by reference and Lessee has failed to correct the default within this period;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 City Council hereby terminates the Lease Agreement due to nonperformance of a material obligation of Mr. Jarog under the Lease Agreement. Should legal action be required to effectuate the termination of the Lease Agreement and/or if it should become necessary to file legal action to remove Mr. Jarog from the Leased Property or to determine and enforce the rights and obligations of the parties under the Lease Agreement, the City Attorney, or his designee is hereby authorized to file such legal actions or lawsuits on behalf of the City. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. EXHIBIT 1 SA0ur Documents\Ordinances1051Tarog termination.doc 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 EXHIBIT A City ` of "DE . 0 . DENTON MUNICIPAL AIRPORT, TERMINAL BUILDING,5000 AIRPORT RD. DENTON, TEXAS 76207 (940)349-7736-(940)349-7744-Fax(940)3.49-7289 September 6, 2005 Terence farog PO Box 3063 Denton, TX 76202 VIA CERTIFIED MAIL: 7004 2890 0403 5971 1187 Dear Mr. 7arog: I wanted to take the opportunity to follow up with you concerning your lease agreement with the City of Denton dated November 2, 2004. As you know,the agreement requires monthly payments in the amount of$27.90 to begin December 1, 2004 and a building permit to be issued 270 days after the execution date of the lease agreement. Airport staff has contacted Building Inspections, Engineering and other development related departments within the city and none of these departments are familiar with your project. Furthermore, we have not received payment on your account per the terms of your lease agreement. These items constitute a material breach of your lease agreement. As such, airport management is providing you written notice to correct the conditions identified above in 30 days, namely,the issuance of a building permit and the payment of $279.00 for the 10 months of past due payments. Failure to correct the identified conditions within 30 days will result in the termination of your lease agreement by a separate written notice. The City of Denton may elect to undertake legal action to collect any delinquent rental or other damages to the City resulting from your default under the terms of your lease agreement. Sincerely, Mar Nelson, CM Director, Airport and Transportation Operations CC: Denton Airport Advisory Board Ed Snyder, City Attorney "Dadicatezt to Quality Serui&' mzow.ci tyo fden to n.co m AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Human Resources ACM: Michael A. Conduff SUBJECT Consider and confirm the appointment by the City Manager of a new member to the Civil Service Commission. BACKGROUND Civil Service Commissioner, Dennis Stephens, ended his term on the Civil Service Commission effective August 2005, as a result of a term limit. Therefore, in compliance with Chapter 143.006(b) of the Texas Local Government Code, the municipality's chief executive (City Manager) shall appoint a member to serve a three-year term and appointment shall be confirmed by the governing body. RECOMMENDATION The City Manager has elected to appoint Abraham Benavides, Assistant Professor of Public Administration at the University of North Texas, to the Civil Service Commission. FISCAL INFORMATION This item has no fiscal impact. Attachment: Chapter 143.006 Dr. Abraham Benavides' bio Respectfully submitted: *Komme'aria J. Director of Human Resources 1 (d) If an election is held under Subsection (b) , a petition for a subsequent election to be held under that subsection may not be filed for at least one year after the date the previous election was held. To be valid, a petition for a subsequent election must contain the signatures of a number of qualified voters of the municipality equal to at least 20 percent of the number of voters who voted in the most recent municipal election. Any subsequent election must be held at the next general municipal election that occurs after the petition is filed. (e) If the governing body of a municipality that has operated under this chapter for at least one year receives a petition requesting an election to repeal this chapter that is signed by at least 10 percent of the qualified voters of the municipality, the governing body shall order an election submitting to the voters the question on whether this chapter should be repealed. If a majority of the qualified voters vote to repeal this chapter, this chapter is void in that municipality. Acts 1987, 70th Leg. , ch. 149, Sec. 1, ef .f. Sept. 1, 1987. Sec. 143.005. STATUS OF EMPLOYEES IF CHAPTER ADOPTED. Each fire fighter or police officer serving in a municipality that adopts this chapter and who has been in the service of the municipality for more than six months at the time this chapter is adopted and who is entitled to civil service classification has the status of a civil service employee and is not required to take a competitive examination to remain in the position the person occupies at the time of the adoption. Acts 1987, 70th Leg. , ch. 149, Sec. 1, ef .f. Sept. 1, 1987. Sec. 143.006. IMPLEMENTATION: COMMISSION. (a) On adoption of this chapter, the Fire Fighters' and Police Officers' Civil Service Commission is established in the municipality. The chief executive of the municipality shall appoint the members of the commission within 60 days after the date this chapter is adopted. Within 30 days after the date the municipality's first full fiscal year begins after the date of the adoption election, the governing body of the municipality shall implement this chapter. (b) The commission consists of three members appointed by the municipality's chief executive and confirmed by the governing 3 body of the municipality. Members serve staggered three-year terms with the term of one member expiring each year. If a vacancy occurs or if an appointee fails to qualify within 10 days after the date of appointment, the chief executive shall appoint a person to serve for the remainder of the unexpired term in the same manner as the original appointment. (c) A person appointed to the commission must: (1) be of good moral character; (2) be a United States citizen; (3) be a resident of the municipality who has resided in the municipality for more than three years; (4) be over 25 years of age; and (5) not have held a public office within the preceding three years. (d) In making initial appointments, the chief executive shall designate one member to serve a one-year term, one member to serve a two-year term, and one member to serve a three-year term. If a municipality has a civil service commission immediately before this chapter takes effect in that municipality, that civil service commission shall continue as the commission established by this section and shall administer the civil service system as prescribed by this chapter. As the terms of the members of the previously existing commission expire, the chief executive shall appoint members as prescribed by this section. If necessary to create staggered terms as prescribed by this section, the chief executive shall appoint the initial members, required to be appointed under this chapter, to serve terms of less than three years. (e) Initial members shall elect a chairman and a vice-chairman within 10 days after the date all members have qualified. Each January, the members shall elect a chairman and a vice-chairman. (f) The governing body of the municipality shall provide to the commission adequate and suitable office space in which to conduct business. (g) The chief executive of a municipality commits an offense if the chief executive knowingly or intentionally fails to appoint the initial members of the commission within the 60-day period 4 prescribed by Subsection (a) . An offense under this subsection is a misdemeanor punishable by a fine of not less than $100 or more than $200. Each day after the 60-day period that the chief executive knowingly or intentionally fails to make a required appointment constitutes a separate offense. (h) The chief executive of a municipality or a municipal official commits an offense if the person knowingly or intentionally refuses to implement this chapter or attempts to obstruct the enforcement of this chapter. An offense under this subsection is a misdemeanor punishable by a fine of not less than $100 or more than $200. Acts 1987, 70th Leg. , ch. 149, Sec. 1, ef .f. Sept. 1, 1987. Sec. 143.007. REMOVAL OF COMMISSION MEMBER. (a) If at a meeting held for that purpose the governing body of the municipality finds that a commission member is guilty of misconduct in office, the governing body may remove the member. The member may request that the meeting be held as an open hearing in accordance with Chapter 551, Government Code. (b) If a commission member is indicted or charged by information with a criminal offense involving moral turpitude, the member shall be automatically suspended from office until the disposition of the charge. Unless the member pleads guilty or is found to be guilty, the member shall resume office at the time of disposition of the charge. (c) The governing body may appoint a substitute commission member during a period of suspension. If a member pleads guilty to or is found to be guilty of a criminal offense involving moral turpitude, the governing body shall appoint a replacement commission member to serve the remainder of the disqualified member's term of office. Acts 1987, 70th Leg. , ch. 149, Sec. 1, ef .f. Sept. 1, 1987. Amended by Acts 1995, 74th Leg. , ch. 76, Sec. 5.95(82) , ef .f. Sept. 1, 1995. Sec. 143.008. ADOPTION AND PUBLICATION OF RULES. (a) A commission shall adopt rules necessary for the proper conduct of commission business. (b) The commission may not adopt a rule permitting the appointment or employment of a person who is: 5 Abraham David Benavides, Assistant Professor in the Department of Public Administration at the University ofNorth Texas joined the faculty in the Fall of 2002. He received his Doctors Degree from Cleveland State University, his Masters Degree from Brigham Young University, and his Bachelors Degree from George Washington University. Before entering academia, Dr. Benavides worked as an accreditation coordinator for county government in the state of Ohio and for the Department of Human Resource Management for the State of Utah. He is currently conducting research in a number of areas and has made national presentations on subjects ranging from local government management and human resources to diversity issues. He currently has an article under consideration for publication in State and Local Government Review entitled, "Hispanic City Managers in Texas: A Small Group of Professional Administrators." He also recently completed a major research project entitled "Municipal Best Practices for the Hispanic Community." Dr. Benavides serves as president of the North Texas Chapter of the American Society for Public Administration, and as vice president for a local nonprofit organization that serves at risk-preschool children in the city of Denton, Texas. AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Police ACM: Jon Fortune SUBJECT Consider approval of an ordinance authorizing the City Manager to execute an Interlocal Agreement with the DENCO Area 9-1-1 District relating to the Denton Public Safety Answering Point(PSAP); and providing an effective date. BACKGROUND The City of Denton Public Safety Communications Section has acted as a DENCO 9-1-1 public safety answering point (PSAP) for approximately 15 years. This agreement constitutes a renewal of the standard agreement with DENCO Area 9-1-1 District. DENCO agrees to provide all hardware, software, equipment, procedures, training, management, and maintenance for the 9-1-1 system. The City agrees to staff the PSAP with trained Telecommunicators on a twenty-four hour a day basis and allow access to the PSAP equipment at all times. Additionally, DENCO will provide the Microwave Radio Network System ("Microwave System") for the purpose of establishing enhanced communications in the geographical area served by DENCO. RECOMMENDATION Staff recommends approval of the ordinance in order to ensure continued 9-1-1 service to its citizens. PRIOR ACTION/REVIEW This ordinance has been reviewed by the Legal Department and approved as to form and content. Agenda Information Sheet November 15, 2005 Page 2 FISCAL IMPACT The adoption of this ordinance will not have any projected or related costs to the City of Denton. EXHIBITS Ordinance Interlocal Agreement Respectfully Submitted, Charles Wiley Chief of Police Prepared by: we-, Lt. Loyd Burns Support Services Bureau "+ i S:\Our Ducuments\ordinances1051Denton PSAP Ord.doc ORDINANCE NO. AN ORDINANCE APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE DENCO AREA 911 DISTRICT RELATING TO THE DENTON PUBLIC SAFETY ANSWERING POINT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denco Area 911 District ("Denco") is a duly organized political subdivision in the State of Texas engaged in providing the enhanced 911 equipment network for emergency services for the benefit of citizens within its jurisdiction; and WHEREAS, Denco and the City desire to establish the Denton Police Department as the primary Public Safety Answering Point ("Denton PSAP"), which will receive 911 calls that originate from areas within and from areas outside of Denton's corporate boundaries and the City would handle all 911 calls in accordance with the procedures adopted by the City and Denco and with the statutes of the State of Texas; and WHEREAS, Denco will provide the Microwave Radio Network System ("Microwave System") for the purpose of establishing enhanced communications in the geographical area served by Denco; and WHEREAS, the City Council deems it in the public interest to enter into an agreement which allows the City and Denco to install Microwave System equipment at the Denton PSAP; 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 Council hereby approves and authorizes the City Manager, or his designee, to execute an Interlocal Agreement between the City of Denton and Denco relating to the establishment of a Denton PSAP, in substantially the form of the Interlocal Agreement which is attached to and made a part of this Ordinance for all purposes. SECTION 3. The City Manager, or his designee, is authorized to make all expenditures and take all actions necessary to implement the terms and conditions of the attached Interlocal Agreement. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. S:lOur Documentsl0rdinances1051Denton PSAP Ord.doc 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 of 2 THE STATE OF TEXAS ) } COUNTY OF DENTON ) INTERLOCAL AGREEMENT TO SERVE AS A DENCO AREA 9-1-1 DISTRICT PUBLIC SAFETY ANSWERING POINT This Interlocal Agreement (the "Agreement") is entered into by and between the City of Denton ("the City") and the Denco Area 9-1-1 District ("Denco"), both entities being located in Denton County, Texas, and hereinafter referred to collectively as the "Parties." The Parties execute this Agreement as hereinafter provided, pursuant to the Texas Government Code, Chapter 791, known as the Interlocal Cooperation Act, and the Health and Safety Code, Section 774.003: WHEREAS, Denco is a duly organized political subdivision of the State of Texas engaged in providing the enhanced 9-1-1 equipment network for emergency services for the benefit of the citizens of Denton County; and WHEREAS, the City is a home-rule municipality engaged in providing ambulance and emergency service and related services for the benefit of the citizens within its jurisdiction; and WHEREAS, Denco and the City desire to establish the Denton Police Department as the primary Public Safety Answering Point ("Denton PSAP"), and as more particularly described in Exhibit "A" attached to and made a part of this Agreement, within the Denco Enhanced 9-1-1 System; and WHEREAS, in general, the Denton P SAP will receive 9-1-1 calls that originate from areas within and from areas outside of its corporate boundaries. In any instance, without regard to the point origination of the 9-1-1 call, the Denton PSAP agrees to handle all 9-1-1 calls in accordance with procedures adopted by the City, Denco and the statutes of the State of Texas; and WHEREAS, Texas Government Code Chapter 791 authorizes local governments to enter into contracts with other local governments to perform governmental functions and services in accordance with the statute cited herein and the terms of this contract; and WHEREAS, both Parties are authorized to perform the services contemplated herein as a governmental function and each Party accepts the consideration expressed herein as reasonable and adequate. NOW, THEREFORE, Denco and the City for the mutual consideration hereinafter stated, agree as follows: 1 1. Term. The Term shall commence as of the date the last Party executes this Agreement. The Agreement shall be for a term of one (1) year and shall automatically renew for successive one year terms unless otherwise terminated as specified herein. 2. Ownership. The City agrees that the 9-1-1 equipment installed or placed at the Denton PSAP remains the property of Denco. 3. Damages to E ui ment. Denco shall be responsible for any damage to the equipment that Denco or its authorized agents, who have been approved in writing by the City, have installed or placed at the Denton PSAP, including normal wear and tear usage and/or loss, unless such damage is caused by an act or omission of the City. 4. Qperation, Maintenance and Modification of System and Equipment. Denco agrees to install, operate, maintain and manage the database, network and equipment management for the 9-1-1 system hardware, software and microwave systems equipment installed at the Denton PSAP. The City agrees that Denco staff or its authorized agents, who have been approved in writing by the City, shall be the only personnel authorized to maintain, modify, move or change the configuration of the 9-1-1 equipment installed at the Denton PSAP without written permission from Denco. This shall include the installation and maintenance of all hardware, software, and microwave systems equipment other than that approved in writing by Denco. 5. Access. The City agrees to provide immediate, unrestricted access to Denco staff, or its authorized agents, who have been approved in writing by the City, to the 9-1-1 equipment, the microwave systems equipment, and the 9-1-1 telephone demarcation point. Denco agrees to provide timely prior notice to the City for need of access to said equipment. It is understood that in the case of an emergency, such prior notice may not be possible. 6. PSAP Operations. The City agrees to provide PSAP operations on a twenty-four hour a day basis and to staff the Denton PSAP with trained Telecommunicator(s) whose training meets the standards set by the City, Denco and the State of Texas. 7. Training. Denco agrees to provide training for 9-1-1 telecommunicators, not to include payment for the telecommunicators' time, benefits, and travel. The City agrees to participate in all equipment-training classes required by Denco. The salary of any personnel attending training shall be the responsibility of the City. S. Accommodations for Equipment. The City agrees to make reasonable modifications, such as providing the necessary dedicated electrical circuits and outlets, physical space, and any other reasonable requirements to allow for the installation of the 9-1-1 equipment and microwave systems equipment. 9. Alternate Power Source. The City agrees to provide an alternate power source (generator) for the 9-1-1 equipment and microwave systems equipment, to test this alternate source under load on a monthly basis, and to maintain such equipment in good working order. 10. Alternate Telephone System. Denco agrees to provide at the Denton PSAP an alternate telephone system, with sufficient telephone numbers and instruments as agreed to by the 2 City and Denco, to receive 9-1-1 calls in the event of a 9-1-1 system failure or overload. Denco will test the alternate telephone system on a regular basis. 11. System Problems. Denco agrees to provide PSAP management with procedures for reporting problems with the 9-1-1 system, including means for escalation. 12. Errors. The City agrees to report all 9-1-1 database and routing errors as they occur through the electronic means provided by Denco. Denco shall be responsible for the resolution of all 9-1-1 system errors. 13. Denton PSAP Relocation. The City agrees that the 9-1-1 equipment, including, but not limited to, an ECS 1000 switch or any other Denco-owned telecommunications equipment and the microwave systems equipment that is installed or placed at the PSAP location, shall not be removed, moved, or modified from its installed location or disconnected or modified or restricted in its operation without one hundred and eighty (180) days advance written prior notice to Denco for Denco to act on the change. The City agrees that it will give Denco one hundred and eighty (180) days advance written prior notice of the expiration of any lease that may be applicable to the PSAP location or of any sale of the PSAP location or of any proposed change or restructure of the PSAP location so that Denco will have one hundred and eighty (180) days to relocate or move the 9-1-1 equipment and the microwave systems equipment. The City agrees to maintain power supply and temperature control until Denco makes the change. If the equipment is not moved or relocated within said time frame, the City may move or relocate the equipment, or cause such work to be done, at Denco's expense. The costs, charges, and expenses incurred in moving or relocating the equipment, or having such work done, shall be a charge to Denco. Denco shall pay for such costs, charges, and expenses within thirty (30) days after the City submits a bill to Denco. The City shall not be responsible for any damage to the equipment which results from moving or relocating the equipment, or causing such work to be done. 14. Manual ALI Query. The City agrees to comply with the attached guidelines, marked as Exhibit "B" and incorporated in this agreement for all purposes, for use of manual Automated Location Identification ("ALI") Query and agrees to execute the attached letter, marked as Exhibit "C" attached hereto requesting the service from the 9-1-1 database provider. 15. Confidentiality. The City and Denco agree that certain information provided through the 9-1-1 system is confidential and agree not to disclose such information to the extent allowed by state law. Any release of this information in compliance with an Attorney General's Opinion or a court order will not be considered a breach of this Agreement. 16. Termination. In the event that either Party desires to terminate this Agreement, the desiring Party shall give written notice thereof to the other Party one hundred and eighty (180) days prior to the expiration of the then in effect one year term. Upon termination, Denco shall promptly remove all equipment installed or placed at the Denton PSAP and shall repair any damage cause by such removal. Denco will have one hundred and eighty (180) days to remove the equipment. If the equipment is not removed within said time frame, the City may remove the equipment, or cause such work to be done, at Denco's expense. The costs, charges, and expenses incurred in removing the equipment, or having such work done, shall be a charge to Denco. Denco shall pay for such costs, 3 charges, and expenses within thirty(30) days after the City submits a bill to Denco. The City shall not be responsible for any damage to the equipment which results from removing the equipment, or causing such work to be done. 17. Governmental Immunity and Res onsibilit . The Parties acceptance of certain responsibilities relating to the rendering of public safety services under this Agreement as a part of their responsibility for providing protection for the public health makes it imperative that the performance of these vital services be recognized as a governmental function and that the doctrine of governmental immunity shall be, and is hereby, invoked to the extent possible under the law. Neither of the Parties waives nor shall be deemed hereby to waive any immunity or defense that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. Each Party shall be responsible for the acts and negligence of its own officers, employees, agents and volunteers engaged in the performance of this Agreement. Each Party shall also be responsible for any property damage or bodily injury caused by their equipment located at the Denton PSAP and for any property damage or bodily injury caused by any act or omission by their officers, employees, agents and volunteers. Each Party further agrees to waive all rights of subrogation against the other Party for losses arising from work performed by either Party at the Denton PSAP. Any contractor or third party hired or utilized by a Party for work on the Microwave System shall comply with the insurance requirements set forth in Exhibit I'D". 18. Notices. Except as may be otherwise specifically provided, all notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, addressed to the parties at the respective addresses set forth below or at other addresses as may have been previously specified by written notice delivered in accordance with this Agreement. The City: Michael A. Conduff City Manager 215 E. McKinney Denton TX 76201 Denco: Mike Pedigo Denco Area 9-1-1 District P.O. Box 293058 Lewisville, Texas 75029-3058 19. Venue and Governing Law. The Parties agree that if legal action is brought under this Agreement, exclusive venue shall Iie in the Courts of Denton County, Texas, and its terms or provisions, as well as the rights and duties of the Parties hereunder, shall be governed by the laws of the State of Texas. 20. Severability. In case any one or more of the terms, sentences, paragraphs or provisions contained in this Agreement shall for any reason he held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not 4 affect any other terms, sentences, paragraphs or provisions thereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained here. 21. Amendments. This Agreement may be amended or modified only by the mutual agreement of the Parties. Such amendment or modification must be in writing and executed by an authorized representative of each Party. 22. CountgMarts. This Agreement may be executed in multiple counterparts and shall be binding on and endure to the benefit of each Party and each counterpart shall be deemed an original for all purposes when duly authorized by the governing body of each Party and signed by such Party's duly authorized representative. 23. Entire A eement and Prior AgKeements Su perseded. This Agreement represents the entire and integrated agreement between Denco and the City and supersedes any prior understandings, negotiations, representations, or written or oral agreements between the parties respecting this subject matter. 24. Binding Nature. This Agreement shall be binding on and inure to the benefit of the Parties and their respective heirs, executors, administrators, Iegal representatives, successors, and assigns as permitted by this Agreement. 25. Other Instruments. The parties agree that they will execute any other instruments and documents that may become necessary or convenient to effectuate and carry out the Project contemplated by this Agreement. 26. No Oral Commitments. This Agreement contains all commitments, agreements, warranties and representations of the Parties. Any oral or written commitments, agreements, warranties or representations not contained herein shall have no force or effect to alter any term or condition of this Agreement. 27. Gender. Whenever the context shall require, all words in this Agreement in any gender shall be deemed to include the masculine, feminine, or neuter gender, all singular words shall include the plural, and all plural words shall include the singular. 28. Si atones. The undersigned officer and/or agents of the Parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the Parties hereto and each Party hereby certifies to the other that any necessary resolutions extended said authority have been duly passed and are now in full force and effect. 29. PayMpnt for Performance of Governmental Functions. Each Party paying for the performance of governmental functions or services must make those payments from current revenues available to the paying Party. 5 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective from the last date signed and marked on this Agreement by a participating Party. CITY OF DENTON BY: MICHAEL A. CONDUFF, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: APPROVED BY DENCO AREA 4-I-1 DISTRICT BOARD OF MANAGERS, DENTON COUNTY, TEXAS: BY: DATE: Mike Pedigo, E ECUTIVE DIRECTOR ATTEST: Carla Flowers, BUSINESS MANAGER APPROVED AS TO FORM: /�L"eddiie Taylor, TORN 6 EXHIBIT "A" LOCATION OF DENTON PSAP The Denton PSAP is located 601 E. Hickory St., Denton. The equipment installed at the PSAP includes, but is not limited to: • 9-1-1 integrated (Telephone, IRR, and TTY) computers workstations and monitors. • Network rack(s) and/or enclosures in equipment room. • Server(s), network switch, routers, and a printer. Printer supplies are responsibility of Denton PSAP. • 9-1-1 controller(s) ["ECS-1000"J hosting Denton, Denton County, Lake Dallas, Roanoke, TWU, and UNT PSAPs. • Microwave radios, digital cross-connects, channel banks, and associated peripherals. 7 EXHIBIT "B" MANUAL ALI QUERY DESCRIPTION: Manual ALI Query is a service that allows a telephone number to be manually input at an E9-1-1 answering position and cause the retrieval and display of the Automatic location Identification record for the number for the E9-1-1 database. GUIDELINES: Manual ALI Query May Be Provisioned Under The Conditions • The 911 customers must apply for the feature in writing. The application shall include acknowledgment by the 911 customer and the PSAP(s) of these guidelines and tariff provisions related to ALI access. • The PSAP must be equipped with CPE that is compatible with the FT/ALI host computer using the existing protocol for identifying manual queries. • Any information obtained from the E9-1-1 ALI database in connection with an emergency call shall be used solely for the purpose of handling and responding to emergency calls in a manner consistent with the nature of the emergency. • Any permanent record associating a subscriber's telephone number with his name or address shall be secured by the PSAP and disposed of in a manner that will retain that security. • Use of this feature and the information obtained is restricted to circumstances where quick response to an in-progress emergency would be aided by having the ALI data for a telephone number associated with the emergency situation. 8 EXHIBIT "C" APPLICATION LETTER FOR NON-SBC-PROVIDED CPE AT PSAP Dear SBC: This letter is to request SBC to enable the "Manual ALI Query" feature at The City of Denton, Texas Public Safety Answering Point (PSAP). The 911 premise equipment provided by Denco Area 9-1-1 District at this PSAP has been configured to allow manual queries, and is compatible with the manual ALI query protocol of the SBC FT/ALI system. It is further acknowledged that a test of the compatibility with the FT/ALI protocol shall be performed with the participation of SBC personnel in conjunction with the activation of this feature, and that SBC shall have ongoing access to the PSAP for testing when required to resolve maintenance issues. This PSAP needs to be able to query ALI records within the community of Denton, Texas, defined in your 911 database as ESN(s) 405,428, 448, 453, 456, Denco Area 9-1-1 District and the City of Denton, Texas operator/user of the PSAP, fully understand and agree to comply with the terms and conditions contained in SBC's E911 service tariff (Sec. 34, Gen. Exch. Tariff) and the conditions specified in SBC's letter to CSEC dated November 28, 1995 under which this feature may be provisioned. Acknowledgment signatures by authorized representatives of contracting 911 agency and PSAP: Mike Pedigo Name Executive Director Title Denco Area 9-1-1 District City of Denton Date Date 9 Exhibit D CITY OF DENTON INSURANCE REQUIREMENTS FOR CONTRACTORS Bidder's attention is directed to the insurance requirements below. It is highly recommended that bidders confer with their respective insurance carriers or brokers to determine in advance of Bid submission the availability of insurance certificates and endorsements as prescribed and provided herein. If an apparent low bidder fails to comply strictly with the insurance requirements, that bidder may be disqualified from award of the contract. Upon bid award, all insurance requirements shall become contractual obligations, which the successful bidder shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurance coverage as indicated hereinafter. As soon as practicable after notification of bid award, Contractor shall file with the Purchasing Department satisfactory certificates of insurance, containing the bid number and title of the project. Contractor may, upon written request to the Purchasing Department, ask for clarification of any insurance requirements at any time; however, Contractors are strongly advised to make such requests prior to bid opening, since the insurance requirements may not be modified or waived after bid opening unless a written exception has been submitted with the bid Contractor shall not commence any work or deliver any material until he or she receives notification that the contract has been accepted, approved, and signed by the City of Denton. All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, 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 A. • Any deductibles or self-insured retentions shall be declared in the bid proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. SAOur DocumentsWiseellaneous\insurance requirments$lm&5K.doc • Liability policies shall be endorsed to provide the following: •• Name as additional insured the City of Denton, its Officials, Agents, Employees and volunteers. •• That such insurance is primary to any other insurance available to the additional insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability. • All policies shall be endorsed to read: "SAID POLICY SHALL NOT BE CANCELLED, NONRENEWED OR MATERIALLY CHANGE WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE BEING GIVEN TO THE OWNER (CITY) EXCEPT WHEN THE POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM IN WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED': • 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 to claims made after expiration of the contract shall be covered. • Should any of the required 'insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the Contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance. • Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. SA0ur Documents lMiscellaneousVnsurance requirments Sim&.5K.doc SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [X] A. General Liability Insurance: General Liability insurance with combined single limits of not less than $1,000,000.00 hall be provided and maintained by the Contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG 0001 current edition)is used: • Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage. • Coverage B shall include personal injury. • Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least: • Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCq exposures. • Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. [X] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than $500,000.00 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract. s:lOur Documents\Miscellaneouslinsurance requirments$lm&5K.doc Satisfaction of the above requirement shall be in the form of a policy endorsement for= • any auto, or • all owned,hired and non-owned autos. [X] Workers Compensation Insurance Contractor shall purchase and maintain Worker's Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction projects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 110.110 of the Texas Worker's Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or Contractor's operations under this contract. Coverage shall be on an "occurrence" basis, and the policy shall be issued by the same insurance company that carries the Contractor's liability insurance. Policy limits will be at least combined bodily injury and property damage per occurrence with a aggregate. [ ] Fire Damage Legal Liability Insurance Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. SAOur Documents\Miscellaneouslinsurancc requirments$lm&5K.doc [ ] Professional Liability Insurance Professional liability insurance with limits not less than per claim with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. [] Builders' Risk Insurance Builders' Risk Insurance, on an All-Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ ] Commercial Crime Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside the premises, burglary of the premises, and employee fidelity. The employee fidelity portion of this coverage should be written on a "blanket" basis to cover all employees, including new hires. This type insurance should be required if the contractor has access to City funds. Limits of not less than each occurrence are required. [ ] Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. S:%Our Documents\Miscellancouslinsurance requirments$lm&5K.doc ATTACHMENT 1 [X) Worker's Compensation Coverage for Building or Construction Projects for Governmental Entities A. Definitions: Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the proj ect. Duration of the project - includes the time from the beginning of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.096) - includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner- operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any overage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the Contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. SAOur DocumentslMiscellaneous\insurance requirments$]m&5K.doe D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: (1) a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and (2) no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The contractor shall contractually require each person with whom it contracts to provide services on a project, to: (1) provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project; (2) provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; SAOur DocumentsWiscellaneouslinsurance requirments$lm&SK.doc (3) provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; (4) obtain from each other person with whom it contracts, and provide to the contractor: (a) a certificate of coverage,prior to the other person beginning work on the project; and (b) a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; (5) retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (6) notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and (7) contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. I By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor's failure to corriply with any of these provisions is a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. SAOur DocumentsWisce llaneouslinsurance requirments$1m&5K.doc AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Utility Administration ACM: Howard Martin, 349-8232 SUBJECT Consider approval of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager to pay the City's annual consolidated water quality fees for FY 2006 to the Texas Commission on Environmental Quality; authorizing the expenditure of funds therefor; providing an effective date. (The Public Utilities Board will consider this item at their November 14th meeting.) BACKGROUND The Texas Commission on Environmental Quality charges the Consolidated Water Quality Fee (CWQ)to all wastewater treatment plants in Texas. This fee is based on the permitted plant capacity and the wasteload allocation allowed to be discharged in the receiving stream. Payment of the CWQ fee is mandatory to continue to operate the Pecan Creek Water Reclamation Plant. The CWQ fee (see invoice Exhibit 1) assessment for the Pecan Creek Water Reclamation Plant(PCWRP) is $63,170. OPTIONS Payment of TCEQ CWQ fee is mandatory to operate the Pecan Creek Water Reclamation Plant. RECOMMENDATION Staff recommends approval of the CWQ fee to TCEQ. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item will be presented to the Public Utilities Board at their November 14th 2005 regular meeting. FISCAL INFORMATION The CWQ Fee will be paid from the FY2006 revenue account. EXHIBITS 1. TCEQ CWQ Fee Invoice 2. PUB Minutes ;Res ectfully submitted: Jim Coulter Director of Water Utilities Prepared by: P�'T" P.S. Arora, RE Assistant Director of Wastewater Utilities 1 ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO PAY THE CITY'S ANNUAL CONSOLIDATED WATER QUALITY FEES FOR FY 2006 TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Public Utilities Board of the City of Denton, Texas has examined, considered, and recommended approval for payment of the Consolidated Water Quality Fees ("CWQ") that have been charged and assessed to the City by the Texas Commission on Environmental Quality ("TCEQ") for the Fiscal Year 2006; that said CWQ fees are now due and owing, and the TCEQ invoice requesting payment of said CWQ fees has been issued to and received by the City; and WHEREAS, all wastewater treatment plants in Texas are charged such fees by TCEQ as provided by applicable law; said CWQ fees are based upon the permitted plant capacity and the wasteload allocation allowed to be discharged in the receiving stream; and WHEREAS, the City of Denton, Texas operates two wastewater treatment plants; the Pecan Creek Water Reclamation Plant ("PCWRP") is currently permitted for 15 million gallons per day ("MGD"); per day; the CWQ fee assessment for the PCWRP is $63,170; and WHEREAS, the City Council finds that it is in the public interest that such fees should be paid, and accordingly, approves the payment of $63,170 for CWQ fees for FY 2006 to the TCEQ; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to pay the sum of$63,170 directly to the Texas Commission on Environmental Quality ("TCEQ"), for the FY 2006 Consolidated Water Quality Fees for the wastewater treatment facility maintained by the City. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2005. EULINE BROCK, MAYOR 1 EXHIBIT 1 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: S:AOur Documents\Ordinances\05\TCEQ-FY 2006 CWQ Fee-Wastewater Treatment.doc 2 AGENDA MITE: 11 ov an her 15, 2 005 I")lm;PAR N-1ENT: Lc ,,i1 `M:DC',M,/A('-,NI: Jerry H. Dr,9k? Tr Aprity CA .Axorney 010131 EAM A RES0110104 OF `-l`t-IL CITY CN DF,N (.N,, T XA_ , f .a', V mm R E("OG ITIO 43]° 1AXAl- 1291 OF .1..I1I- 1 N'f l,,RN " TTONA1 A 0('WI Ian ' 01", HRE FIGnERS AS, THE SOLE A- N;D EXCI-LAIVE BARGAINING AGENT FOR THE N1}N- E F,I IPT E N'T P U-)Y E S Ck I-111v: UENITON I-I RE F PA1 TM I=:° 'J', AND : €.j T T- 0 I .1 l-V"' -C1I,l°8 CITY f- DENTON. T1_XAS 1`( ) NILE'T w-,,ND MNIF..LR WI".I11 L(-)(-'AL. 1291 UNDER SUB HAPTER t_-` OF t It A]"FER 142 ill.. 114E TEXAS M(m'AL GOVE RNNNTE'-NT C.70D -s, (YPTICUTY 1. Pass Q,Q Sesohl rion ru cavYmzj ng We I itc.1.1 1291 of t1w 111terltatia,nal Association of.-l ire F i _",itrt0:r_i as the sole alut MuNve bargat!ting a, it :I61- t„14 li It 'xenipt Cnenibs rs, of tii Det'tLon Fire e Departrrtus, 2. (Tall for ti ":llstea!Llou "{u%T.01 0 V0rtQ t p1TSe10W3:1VC 0e'tllit.Ct$i:° O1Y1_ocal 1291, pursuant to Codc, all lbr an e(MiOt l tit have the %vi rs Wide: the issue dttr iig the '%Eay QJec ion, ti!!n 11 iilt io §141105 o th I ? yl. Local Go'i wrrllaicnL ("odc. FU,' ,' 11 `1 1 A"f-I0 N: %cttic Opal and consi eratic-,ms I aive aa.iread). b4..c1'1 addressed to (_'t;lundl W anorne cli(,:rJ1 (,'0:9111.1iIl nicaaicnis, and closed session legal. coIi L!It rtalltt m C.e4,al stal"1' ',vill be .1va'dalp"JI to 'I'ddre s a!ditioilttl �1Lle�tiOUS ill Closed ses,,si�,j'l, sIa td tltc nCL,d arise "IS Q,1, C IN.01RAIATIO'' 11: c ,aroMs ano6 algid itth in act and ad ca 1b A win nrng seva Ans w il I cI ;a't]"1 r" be grealtcr tl-au die con of not doing `gat. Such ti.ogs I!1(.:iliide increased MAMMA overllS:al legal lies. consultant Le_�s, lost WT f!!1?l`: I, ut-i!g,g I an--,,,,ala1G1`jzg °-ess 1{?'r3�„ €�1LlLt!t.L4J11al prog.rtanis, and ilic corns of al.Iti9° ca')nces; r, ns mate at the hargaiping MO. I"lt,wever, cecen changes in `Melee law do not p rlint the 0111t°g11L ra 'n t:1.on (A the pmpos,al. allhi;? !1,!:i election would caTry its own a!dmini;,avi' r e'p t se, which could lip cuinulati c of other.. expenses depending 01011 HIC .tlt3HIULe outcome or §Ise: efic .tioi . Precise dollar ttninuras ax incapable of .ready ileterl11Et1rxrlon, as the scope of ow negow,ons is iridere tnintita. Mt7,nr ver insoor as t1i issue arises out ski to en, lc:gislal.totl, E.Demo' has IFia hilt ori d bavis I€ r.t13I%"r ng any cgona!n 1 � p, �Ilt!ff' tllI,1Lvt _: „�,._,, _.,. ,- _ .Icrry E.}E�yyL++4411 , .ri, ryy � E.��,.pm A City Y :4�tro Sly.Yt 0 RESOLUTION fit1 A RE= L,1 TON' OF '.HJ--' CITY 0 DEN] ON GRAN'l INN L"(7 -GNI`IO O LOC'Al- 1291 01- IIH E F 'NIT RNNATIO ;`AI ASSOCIATTON OF FIRE FIGI!'.1_I..RS AS THE SOLE AND EXCLUSIVE BAi GRAI INN " C�F IT FOR 1"I"I , :.�3= T1T7� t ot® FIRE 1. 1 1�, 1 !° i f.,. ,y. l: ,' ' 1°[x4:71 1 a e "lIJE ��'1TY 01 i�� ;v -1`O , TEXAS O AND (,-()NFER "plTH 3,vOi'AL 1201 St.. BCI-1 All'l`Ekl fie' (0: ('H BFI1®R 142 GF TIK TEXAS LOC'vU GO FR INTENT ..ODE, WI` FIOUT W1 7l1 REAS_ o_rit Octohc-,-r 18, pursuant to S chop 1,42-10-3, of the Texas Local '),"i 7iment .°odc. ffic (-'it ' of De111jn' ee as rer",jved a Pefittt}n Local !291 of 1lt'� .In,eT-n do n tt Assocnitio 7 Lit as Mcsolc and c.x�lussive I.a,i'gai.n i i�-.Cnl 1i ATT E_= T, : APPROVED AS TO LEGAL JFORNIEI: l' WI N , S M° D E P. r e r�. xry° s,. AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Fiscal Operations ACM: Jon Fortune SUBJECT Consider approval of a resolution reviewing and adopting the Investment Policy for funds for the City of Denton; designating an investment officer; providing a savings and a repealing clause; and providing an effective date. BACKGROUND In accordance with the Public Funds Investment Act of Texas, the City of Denton Investment Policy must be approved by the City Council at least annually. The Policy establishes investment parameters and guidelines for the investment program. It also designates the authorized investment officer responsible for the daily investment activity by the City. The Investment Committee met on Monday, November 7, 2005, and unanimously approved a recommendation for minor "housekeeping" updates, specifically, updating staff titles. PRIOR ACTION/REVIEW Investment Policy 408.04 was presented to the Investment Committee on Monday, November 7, 2005. All Committee members voted for approval and recommended the Policy be submitted to the City Council for consideration (5-0). Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations S:IOur Documents\Resolutions1051investment Policy ReviewIdoc RESOLUTION NO. A RESOLUTION REVIEWING AND ADOPTING THE INVESTMENT POLICY FOR FUNDS FOR THE CITY OF DENTON; DESIGNATING AN INVESTMENT OFFICER; PROVIDING A SAVINGS AND A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council passed Resolution No. 96-061 on October 15, 1996, which adopted an Investment Policy for Funds for the City, in compliance with the Public Funds Investment Act, 74th Leg., ch. 402, 1995 Tex. Sess. Law Serv. 2958 (Vernon) (TEX. GOVT CODE Ann. Ch. 2256); and WHEREAS,by Resolution No. 97-026, passed by the City Council on June 10, 1997, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 97-077, passed by the City Council on December 16, 1997,the City's Investment Policy was amended; and WHEREAS, by Resolution No. 98-067, passed by the City Council on December 15, 1998,the City's Investment Policy was reviewed and adopted; and WHEREAS, by Resolution No. 99-047, passed by the City Council on September 21, 1999, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2000-065, passed by the City Council on December 19, 2000,the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2001-072, passed by the City Council on December 18, 2001, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2002-055, passed by the City Council on December 10, 2002, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2004-008, passed by the City Council on February 3, 2004, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2005-008, passed by the City Council on February 22, 2005, the City's Investment Policy was amended; and WHEREAS, the City Council desires to review the Investment Policy for compliance to the Public Funds Investment Act, TEX. GOV'T CODE ch. 2256, by the 79th Legislature; NOW, THEREFORE, S:IOur Documents\Resolutions1451lnvestment Policy ReviewIdoc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council has reviewed the attached City of Denton Investment Policy, which contains the City's investment policies and investment strategies for each of the funds under its control and hereby adopts the attached Investment Policy, which is made a part of this Resolution for all purposes. SECTION 2. The Assistant City Manager, Jon Fortune, and the Chief Finance Officer are hereby designated as the City's Investment Officers to perform the functions required of them. The Investment Officers are hereby authorized to perform the functions required of them under the Investment Policy and in accordance with TEX. GOV'T CODE ch. 2256 (Code) and shall complete the investment training required in accordance with the Code. SECTION 3. All resolutions or parts of resolutions in force when the provisions of this resolution became effective which are inconsistent or in conflict with the terms or provisions contained in this resolution are hereby repealed to the extent of any such conflict only. The non- conflicting sections, sentences, paragraphs, and phrases shall remain in full force and effect. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of Resolution No. 96-061, Resolution No. 97-026, Resolution No. 97-077, Resolution No. 98-067, Resolution No. 99-047, Resolution No. 2000-065, Resolution No. 2001-072, Resolution No. 2002-055, Resolution No. 2004-008, and Resolution No. 2005-008 shall remain in full force and effect. SECTION 5. 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 AT ORNEY BY: Page 2 of 2 CITY OF DENTON Page I of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: FINANCE POLICIES REFERENCE NUMBER: 403.06 INITIAL EFFECTIVE DATE: SUBJECT: INVESTMENTS 021171 87 LAST REVISION DATE: TITLE: INVESTMENT POLICY 06197 9199 12101 1/04 11/97 12100 12/02 2105 I. PURPOSE This policy shall provide the guidelines by which the City of Denton "City" will maintain the minimum amount of cash in its bank accounts to meet daily needs, and to provide protection for its principal and liquidity while receiving the highest yield possible from investing all temporary excess cash. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy. The policy and strategy shall be reviewed annually by the Investment Committee and City Council who will formally approve any modifications. This investment policy as approved, is in compliance with the provisions of the Public Funds Investment Act of Tex. Gov't. Code Ann, Chapter 2256,hereinafter referred to as the "Act", as amended and effective September 1, 1997. H. SCOPE A. This Investment Policy applies to the investment activities of the City of Denton,Texas. The specific funds cited hereafter in Section IIB, shall be excluded from this Investment Policy. [All financial assets of all funds, including the General Fund and any other accounts of the City not specifically excluded in these policy guidelines are included. These funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR).] These funds, as well as funds that may be created from time-to-time, shall be administered in accordance with the provisions of these policies. All funds will be pooled for investment purposes. The strategy developed for this pooled fund group will address the varying needs, goals, and objectives of each fund. B. This policy shall not govern funds, which are managed under separate investment programs in accordance with Section 2256.004 of the Act. Such funds currently include; Employees' Retirement Fund of the City of Denton; the Firemen's and Policemen's Pension Funds of the City of Denton; other funds established by the City for deferred employee compensation; revenue bond reserve funds; and certain private donations. The City shall and will maintain responsibility for these funds to the extent required by: Federal and State Law; the City Charter; and donor stipulations. III. INVESTMENT OBJECTIVE & STRATEGY It is the policy of the "City" that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with State and Federal Regulations, applicable Bond Resolution requirements,adopted Investment Policy and adopted Investment Strategy. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance in accordance with Section 2256.005(d) of the Act), apply for each of the City's investment strategies: POLICY/ADMINISTR.ATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 2 of 13 TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 A. Suitability---Understanding the suitability of the investment to the financial requirements of the City. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety — Preservation and safety of principal. All investments will be of high quality securities with no perceived default risk. Market price fluctuations will however occur, by managing the weighted average days to maturity for each fund type as specified. C. Liquidity — To enable the City to meet operating requirements that might be reasonably anticipated,the City's investment portfolio will remain sufficiently liquid. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. D. Marketability—Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market. E. Diversification—Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. F. Yield—Attaining a competitive market yield for comparable security-types and portfolio restrictions are the desired objective. The yield of an equally weighted, rolling six-month treasury bill portfolio shall be the minimum yield objective or "benchmark". A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool,money market mutual fund or average Federal Reserve discount rate. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Even though steps will be taken to obtain this goal, the City's staff shall constantly be cognizant of the standard of care and the investment objectives pursuant to the provisions of the amended Act, Section 2256.006(a). The Chief Finance Officer shall avoid any transactions that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in Section 2256.006(b)of the Act. IV. INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS Each major fund type has varying cash flow requirements and liquidity needs. Therefore specific strategies shall be implemented considering the fund's unique requirements and the following shall be considered separate investment strategies for each of the funds mentioned below. The City's funds shall be analyzed and invested according to the following major fund types: POLICYIADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 3 of 13 TTTLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 A. Operating Funds — Investment strategies for operating funds and commingled pools containing operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to structure a portfolio, which will minimize volatility during economic cycles. This may be accomplished by purchasing high quality, short-term securities, which will compliment each other in a laddered maturity structure. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity date of each security. B. Debt Service Funds— Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date, which exceeds the debt service payment date. A dollar weighted average maturity of 550 days or less will be maintained and calculated by using the stated final maturity date of each security. C. Debt Service Reserve Funds —Investment strategies for debt service reserve emergency and contingency funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate fund from securities with a low degree of volatility. Securities should be of high quality and, except as may be required by the bond ordinance specific to an individual issue, of short to intermediate-term maturities with stated final maturities not exceeding five (5) years. Volatility shall be further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity and quality range, without paying a premium, if at all possible. Such securities will tend to hold their value during economic cycles. A dollar weighted average maturity of 650 days or less will be maintained. C. Construction and Special Purpose Funds—Investment strategies for construction projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity of each security. E. Market prices for all public fund investments will be obtained and monitored through the use of Interactive Data Inc.,an on-line data service or a similar qualified successor agency. V. INVESTMENT COMMITTEE Members — There is hereby created an Investment Committee consisting of the City Manager, Assistant City Manager, Chief Finance Officer,Mayor, and one member of the City Council. Scope—The Investment Committee shall meet at least quarterly to determine general strategies and to monitor results. Included in its deliberations will be such topics as: economic outlook, portfolio diversification, maturity structure,potential risk to the City's funds, authorized brokers and dealers, and the target rate of return on the investment portfolio. Page 4 of 13 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 Procedures—The Investment Committee shall provide minutes of its meetings. Any two members of the Investment Committee may request a special meeting, and four members shall constitute a quorum. The Investment Committee shall establish its own rules of procedures. VI. RESPONSIBILITY AND STANDARD OF CARE A. Delegation & Training — The management responsibility for the investment program is hereby delegated to the Assistant City Manager, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to the individual(s) responsible for investment transactions. The primary individual who shall be involved in investment activities will be the Chief Finance Officer. The Cash & Debt Administrator will have a support role. The Assistant City Manager and Chief Finance Officer are designated as investment officers, pursuant to section 2256.005 subsection f of the Act. Accordingly, the investment officers, who shall be the chief financial officer and the investment officer of the City for the purposes of Section 2256.008 of the Act, shall attend at least one training session relating to their responsibility under the Act within 12 months after assuming duties. These sessions and additional investment training sessions must be completed no less often than once every two fiscal years commencing September 1, 1997 and these financial officers shall receive not less than 10 hours of instruction struct on relating to investment responsibilities. The training must include education in investment controls, security risks, strategy risks, market risks, and compliance with the Public Funds Investment Act. The investment training session shall be provided by an independent source approved by the investment committee. For purposes of this policy, an"independent source"from which investment training shall be obtained shall include a professional organization, an institute of higher Iearning or any other sponsor other than a Business Organization with whom the City of Denton may engage in an investment transaction. Thus, these independent sources will be training sessions sponsored by Government Treasurers Organization of Texas (GTOT), University of North Texas ( NT), Government Finance Officers Association of Texas (GFOAT). No persons may engage in investment transactions except as provided under the terms of this policy and the procedures established by the Assistant City Manager. The Assistant City Manager shall be responsible for all transactions undertaken, and shall establish a system of control to regulate the activities of the Chief Finance Officer. The controls shall include a quarterly process of independent review by an individual or firm designated by the Assistant City Manager, and an annual review by an external auditor. The reviews will provide internal control by assuring compliance with policies and procedures. The Assistant City Manager, Chief Finance Officer, Mayor, City Council, City Manager and other Finance employees shall be personally indemnified in the event of investment loss provided the Investment Policies and Guidelines are followed. B. Conflicts of Interest All participants in the investment process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. C. Disclosure — Anyone involved in investing City funds shall file with the Assistant City Manager and the Investment Committee a statement disclosing any personal business relationship and any material financial interest in a business organization that handle City of Page 5 of 13 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 Denton investments. An investment officer has a personal business relationship with a business organization if 1. The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; 2. Funds received by the investment officer from the business organization exceed 10% of the investment officers gross income for the prior year; or 3. The investment officer has acquired from the business organization during the prior year investments with a book value of$2,500 or more for the personal account of the investment officer. Any investment officer who is related within the second degree by affinity or consanguinity as determined under the Tex. Gov't. Code Ann. Ch. 573 to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship with the City Council and the Texas Ethics Commission. D. Prudence — The standard of prudence to be used by the investment officials shall be the "Prudent Person Rule", as set forth in Tex. Gov't. Code Ann. Sec. 2256.006 and will be applied in the context of managing an overall portfolio: "Investments shall be made with judgement and care under circumstances then prevailing — which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation,but for investment, considering the probable safety of their capital as well as the probable income to be derived." Investment officials acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibilities for an individual security's credit risk or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. E. Reporting Monthly - The Chief Finance Officer shall submit monthly an investment report, to the Investment Committee, that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed, describe the portfolio in terms of investment securities, maturities, risk characteristics and other features. The report shall include total investment return to date and compare the return with budgetary expectations or projections. i Quarterly — The Chief Finance Officer shall prepare and present to the Investment Committee and City Council a written report on the City's investment transactions for the preceding reporting period. The report shall: 1) describe in detail the investment position of the City as of the end of the reporting period, 2) prepared jointly by all investment officers, 3) signed by each investment officer, 4) contain a summary statement of each pooled fund including a)beginning market value for the reporting period,b)additions and changes to the market value during the period; c) ending market value for the period; and d) fully accrued interest for the reporting period. The summary statement for each fund group must be prepared in compliance with Generally Accepted Accounting Principles (GAAP). 5) State the book value and market value of each separately invested asset at the beginning and end Page 6 of 13 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 of the reporting period by type of asset and fund type invested; 6) state the maturity date of each separately invested asset that has a maturity date, 7) state the account or fund or pooled group fund for which each individual investment was acquired; and 8) state the compliance of the investment portfolio of the City as it relates to the investment strategy of the City and with relevant provisions of the Tex. Gov't. Code ch. 2256. Annually— Within one hundred-twenty (120) days of the end of the Fiscal Year, the Chief Finance Officer shall present a comprehensive annual report to the City Council on the investment program and investment activity. The annual report shall provide a separate quarterly comparison of returns and suggestions for improvements that might be made in the investment program. The City Council shall review and approve the investment policy and investment strategies at least annually and be documented by rule, order, ordinance or resolution which shall include any changes made. Compliance Audit—The City's external, independent auditor will conduct an annual review of the quarterly reports in conjunction with the annual financial audit. The results of the audit will be reported to City Council upon receipt. The audit will review compliance with management control on investments and adherence to this policy. F. The guidelines of retaining records for seven years as recommended in the Texas State Library Municipal Records Manual should be followed. The Chief Finance Officer shall oversee the filing and/or storing of investment records. VII. SUITABLE AND AUTHORIZED INVESTMENT SECURITIES A. Active Portfolio Management — The City intends to pursue an active versus a passive investment management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. (Subsection E) B. Authorized Investments (Per HB 2459 and Sections 2256.009 through 2256.017 of the Act)— Assets of funds of the government of the City of Denton may be invested in: 1. Obligations of the United States of America, its agencies and instrumentalities (maturing in less than five (5) years; which have a liquid market with a readily determinable market value; 2. Investment - grade, direct obligations of the State of Texas (maturing in less than two (2)years); 3. Obligations of the States, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm, and having received a rating of not less than"AA" or its equivalent(maturing in less than two (2)years); 4. Fully insured or collateralized Certificates of Deposit issued by state and national banks or savings bank or a state or federal credit union, domiciled in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or Page 7 of 13 POLIMADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: REFERENCE NUMBER:INVESTMENT POLICY 408.04 the National Credit Union Share Insurance Fund or its successor; secured by obligations described in 1 through 3 above, and that have a market value of not less than the principal amount of the certificates but excluding those mortgage backed securities as described in the Tex. Gov't. Code Sec. 2256.009(b). (maturing in less than one(1)year); 5. Fully collaterized direct repurchase agreements (whose underlying purchased securities consist of the foregoing) with a defined termination date secured by obligations of the United States or its agencies and instrumentalities pledged with a third party, selected and approved by the City through its Chief Finance Officer, other than an agency for the pledgor and deposited at the time the investment is made with the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. Each issuer of repurchase agreements must sign a copy of the City's Master Repurchase Agreement(termination date must be 30 days or less); 6. Commercial paper that has a stated maturity of 270 days or less from the date of issuance and is rated A-1 or P-1 or an equivalent rating by at least two nationally, recognized rating agencies. 7. a. Public Fund Investment Pools with a weighted average maturity of 90 days or less. The pool must be approved(by resolution)by the City Council to provide services to the City. The pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service. A public funds investment pool created to function as a money market mutual fund must mark to market daily and, stabilize at a$1 net asset value. b. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains,at a minimum,the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating Page 8 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar- weighted maturities,and expense ratios. C. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: (1) investment transaction confirmations; and (2) a monthly report that contains, at a minimum,the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current average dollar-weighted maturity, based on the stated maturities of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (H) a listing of daily transaction activity of the entity participating in the pool; (1) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. 8. An SEC-registered, no load money market mutual fund which has a dollar weighted average stated maturity of 90 days or less whose assets consist exclusively of the assets described in section B.1. and whose investment objectives includes the maintenance of a stable net asset value of$1 for each share: furthermore, it provides the City with a prospectus and other information required by the SEC Act of 1934 or the Investment Advisor Act of 1940 and which provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 USC. Section 78a et. Seq.) or the Investment Company Act of 1990 (15 USC Section 80a-1 et. Seq.). 9. Other such securities or obligations which are authorized by the Act as approved by City Council upon recommendation of the Investment Committee. C. Prohibited Investments—The City's authorized investment options are more restrictive than those allowed by State law. Furthermore, this policy specifically prohibits investment in the following investment securities. 1. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage backed security collateral and pays no principal. 2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. Page 9 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 3. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years. 4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. D. Diversification — It is the policy of the City to diversify its investment portfolios. The diversification will protect interest income from the volatility of interest rates and the avoidance of undue concentration of assets in a specific maturity sector; therefore, portfolio maturities shall be staggered. Securities shall also be selected and revised periodically by the Investment Committee. In establishing specific diversification strategies, the two (2) following general policies and constraints shall apply: 1. Risk of market price volatility shall be controlled through maturity diversification and by controlling unacceptable maturity extensions and a mismatch of liabilities and assets. The maturity extension will be controlled by limiting the weighted average maturity of the entire portfolio to 550 days. All long-term maturities will be intended to cover long-term liabilities. In addition, five (5%) percent of the funds in the portfolio will be liquid at all times. 2. The Investment Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in U.S. Treasury Securities, federal agency instrumentalities, repurchase agreements, and insured/collaterlized certificates of deposit and other securities or obligations. The Investment Committee shall conduct a quarterly review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. 3. Risk of principal loss in the portfolio as a whole shall be minimized by diversifying investment types according to the following limitations. Investment Type %ofPoffolio • U.S. Treasury Notes/Bills 100% + U.S. Agencies&Instrumentalities 100% * State of Texas Obligations&Agencies 15% • Local Government Investment Pools 50% • Local Government Obligations(AA) 10% + Repurchase Agreements 25% • Certificates of Deposit 100% + U.S. Government Money Market Funds 50% • U.S.Treasury Notes&U.S.Agency Callables 35% By Institution: Repurchase Agreements No more than 10% All Other No more than 40% Investment Pools No more than $10,000,000 Page 10 of 13 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 E. Security swaps may be considered as an investment option for the City. A swap out of one instrument into another is acceptable to increase yield, realign for disbursement dates, extend or shorten maturity dates and improve market sector diversification. Swaps may be initiated by brokers/dealers who are on the City's approved list. A horizon analysis is required for each swap proving benefit to the City before the trade decision is made, which will accompany the investment file for record keeping. F. All investments (governments or bank C.D.'s) will be solicited on a competitive basis with at least three (3) institutions. The Investment Committee can approve exceptions on a case by case basis or on a general basis in the form of guidelines. These guidelines shall take into consideration the investment type maturity date, amount, and potential disruptiveness to the City's investment strategy. The investment will be made with the broker/dealer offering the best yield/quality to the City. The quotes may be accepted orally, in writing, electronically, or any combination of these methods. G. Arbitrage — Due to the bond issuance sizes of which the City incurs on a regular basis, arbitrage should be addressed. The Tax Reform Act of 1986 provided limitations restricting the City's investing of tax- exempt General Obligation Bond proceeds and debt service income. New arbitrage rebate provisions require that the City compute earnings on investment from each issue of bonds on an annual basis to determine if a rebate is required. To determine the City's arbitrage position, the City is required to perform, specific calculations relative to the actual yield earned on the investment of the funds and the yield that could have been earned if the funds had been invested at a rate equal to the yield on the bonds sold by the City. The rebate provision states that periodically(not less than once every five years, and not later than sixty days after maturity of the bonds), the City is required to pay the U.S. Treasury a rebate of excess earnings based on the City being in a positive arbitrage position. The Tax Reform restrictions require extreme precision in the monitoring and recording facets of investments as a whole, and particularly as they relate to yields and computations so as to insure compliance. Failure to comply can dictate that the bonds become taxable,retroactively from the date of issuance. The City's investment position relative to the new arbitrage restrictions is the continued pursuit of maximizing yield on applicable investments while insuring the safety of capital and liquidity. It is a fiscally sound position to continue maximization of yield and rebate excess earnings,if necessary. Page 11 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 VIII. SELECTION OF BANKS AND DEALERS A. Depository — City Council shall, by ordinance, "select and designate one or more banking institutions as the depository for the monies and funds of the City" in accordance with the requirement of Tex. Loc. Gov't. Code ch. 105. The bank shall be selected primarily on "solvency and stability"and secondly, on rate of interest available. The Chief Finance Officer shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. The bank shall be selected through a formalized bidding process in response to the City's request for proposal (RFP) outlining all services required. The Investment Committee shall have the discretion to determine the time span for rebidding the banking services contract; however, a two year period will be the minimum length of time between bidding with a 5 year maximum period. Banks and savings and loans associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Chief Finance Officer. B. Investment Brokers/Dealers — The Investment Committee shall be responsible for adopting the list of brokers and dealers of government securities. Their selection shall be among only primary government securities dealers that report directly to the New York Federal Reserve Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. The Investment Committee shall base its evaluation of security dealers and financial institutions upon: 1. Financial conditions, strength and capability to fulfill commitments; 2. Overall reputation with other dealers or investors; 3. Regulatory status of the dealer; 4. Background and expertise of the individual representatives. The Chief Finance Officer shall conduct business with securities dealers approved by the Investment Committee or with banks selected as outlined in VIII. Furthermore, the committee must annually review this list of qualified brokers authorized to engage in investment transactions with the City. Investment Officers shall not conduct business with any firm with whom public entities have sustained losses on investments or whose name the Investment Committee has removed from an approved list. C. Compliance — A qualified representative from any firm offering to engage in investment transactions with the City is required to sign a written instrument. This certifies that they have received and reviewed a written copy of the City's Investment Policy. The firm must acknowledge that it has implemented reasonable procedures and controls in an effort to preclude investments between the City and the firm that are not authorized by the City's investment policy. Approved brokers and dealers must complete Exhibit A and return it to Page 12 of 13 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 the Chief Finance Officer. The City's investment officer(s) may not transact business from a person who has not delivered the required written instrument to the City. D. Diversification—To guard against default possibilities under these conditions, and to assure diversification of bidders, business with any one issuer, or investment broker, should be limited to (40%)percent of the total portfolio at any point in time. In this way, bankruptcy, receivership or legal action would not immobilize the City's ability to meet payroll or other expenses. IX. PRINCIPAL PROTECTION AND SAFEKEEPING A. All banks and savings and loan associations' deposits and investments of City funds shall be secured by pledged collateral with a market value equal to no less than 102 percent of the principal plus accrued interest less an amount insured by FDIC or FSLIC. Evidence of proper collateralization in the form of original safekeeping receipts held in the institution's trust department or at a third party institution not affiliated with the bank or bank holding company will be maintained in the office of the Chief Finance Officer all time. The Assistant City Manager, Chief Finance Officer or other authorized City Representative will approve and release all pledged collateral. Collateral will be reviewed monthly to assure the market value of the securities pledged exceeds investments and/or the related bank balances. The Committee shall request additional collateral in the event they deem that their deposits and investments are not sufficiently protected by the pledged collateral. B. Safekeeping procedures shall be established by the Investment Committee which clearly define steps for gaining access to the Collateral should the City determine that the City's funds are in jeopardy. Collateral safekeeping and substitution agreements will be a part of the procedure. C. Collateral Defined — The City of Denton shall accept only the following securities as collateral: 1. FDIC and FSLIC insurance coverage. 2. United States Treasuries &Agencies. 3. Other securities as approved by the Investment Committee. D. Delivery vs. Payment — All transactions will be executed with authorized security dealers and financial institutions on a delivery-versus-payment (DVP)basis. That is, funds shall not be wired or paid until verification has been made that the Trustee received the collateral. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. Securities will be held by the City's safekeeping agent, which shall be selected through a competitive process(RFP)or that agent's representative in New York City, or in it's account at the Federal Reserve Bank. E. Subject to Audit—All collateral shall be subject to inspection and audit by the Chief Finance Officer,or designee, as well as,the City's independent auditors. Page 13 of 13 POLICUADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: REFERENCE NUMBER: INVESTMENT POLICY 408.04 X. MANAGEMENT AND INTERNAL CONTROLS The Chief Finance Officer, or designee, shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed include the following: Imperative Controls_ - Custodian safekeeping receipts records management - Avoidance of bearer-form securities - Documentation of investment bidding events - Written confirmation of telephone transactions - Reconcilements and comparisons of security receipts with the investment subsidiary records - Compliance with investment policies - Verification of all interest income and security purchase and sell computations Controls Where Practical: - Control of Collusion Separation of duties Separation of transaction authority from Accounting and Record-keeping Clear delegation of authority - Accurate and timely reports - Validation of investment maturity decisions with supporting cash flow data Adequate training and development of Investment Officials - Review of financial conditions of all brokers,dealers,and depository institutions - Staying informed about market conditions, changes and trends that require adjustments in investment strategies. AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Planning and Development ACM: Howard Martin 349-8232 SUBJECT— S05-0001: (Northstar Bank) Hold a public hearing and consider the adoption of an ordinance regarding a request for a Specific Use Permit for approximately 0.904 acres to allow a drive-through facility. The site is in a Neighborhood Residential Mixed Use (NRMU) zoning district. The subject property is generally located at the southeast corner of Sundown Blvd. and Teasley Lane and is platted as 1R-1, Block B Sundown Ranch Commercial Lots. (The Planning and Zoning Commission recommended approval 7-0). BACKGROUND Applicant: Bobby Dollak, G& A Consultants, Inc. Lewisville, TX The applicant is requesting a Specific Use Permit for approximately 0.904 acres to allow a drive-through facility as part of a proposed bank. A bank is allowed in the NRMU zoning; however, a drive-through is allowed only with a specific use permit. Public notification information is provided in Attachment 3. As of this writing, staff has received one response in opposition from property owners within 200 feet of the subject site. PRIOR ACTION/REVIEW The Denton Planning and Zoning Commission voted 6-0 on October 12, 2005 to continue the public hearing to October 26, 2005 so that the applicant could consult with the homeowner's association to address its concerns regarding the location of the proposed drive through. The applicant met with the HOA to discuss the proposed drive through. HOA president, Matt Bowler, spoke at the October 26, 2005 public hearing at the Planning and Zoning Commission in favor of the Special Use Permit request on behalf of the Sundown Ranch Homeowner's Association. Applicant proposes to leave the drive through location as originally proposed; applicant made minor adjustments to the location of the dumpster. Applicant will also be assisting the homeowners association with irrigation and with electricity for the association's sign. OPTIONS 1. Approve as submitted. 2. Approve with conditions. 3. Deny. 4. Postpone consideration. 5. Table item. 1 RECOMMENDATION The Planning and Zoning Commission recommends approval 7-0. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map) 4. Site Photos 5. Building Elevations 6. Site Plan 7. Minutes 8. Letter of Opposition 9. Ordinance Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development Prepared by: z Lori Shelton Planner II 2 ATTACHMENT 1 Staff Analysis Summary of Zoning Request The applicant is requesting a Specific Use Permit for approximately 0.904 acres to allow a drive-through facility. The site is located in a Neighborhood Residential Mixed Use (NRMU) zoning district. The subject property is generally located at the southeast corner of Sundown Blvd. and Teasley Lane. A bank with a drive-through is proposed. Existing Condition of Property The property is currently undeveloped. Adjacent zoning and land uses. North: Neighborhood Residential Mixed Use (NRMU) (undeveloped land) South: Neighborhood Residential Mixed Use (NRMU) (developed office use) East: Neighborhood Residential Mixed Use (NRMU) (undeveloped land) West: Neighborhood Residential Mixed Use (NRMU) (municipal buildings) 3 ATTACHMENT 2 Maps NORTH tt� I � f � - \F 1 y _ Is LOCATION AND ZONING MAP 4 ATTACHMENT 3 Public Notification 12010, F713UF I _ 3 1 E �b i 500 FT BUFFER Scale: None Newspaper Notification Date: Oct 2, 2005 Percent of land within 200' in opposition: <5 % 200' Legal Notices* sent via Certified Mail: 10 500' Courtesy Notices* sent via 1St Class Mail: 48 • In Favor: 2 • Opposed: 1 • Neutral: 0 5 ATTACHMENT 4 Site Photographs } t. I 6 I DD W I i I x i suo1jeAG13 Buippq 9 1N3WHOVii ' I I i ° o I 8 ' o o I o � � p I i Ell Ell i ATTACHMENT 6 Site Plan 01 1 r NN . W[ rit :% 1FM11vtl Iv f�,t V, I, m1 MWO ISQINBOWN BLVD ti t c 50.39' as r i :.� rr�r @ t c Al 1 I , Lk! `i t x Proposed One Story { 5570 SF (Bank Building 4i t , re 5 , r^ } { _ Ia Loo IR t O,`a C K {� r I4+idF., YC£kAL r , & 8 ATTACHMENT 7 Planning & Zoning Minutes October 26, 2005 Can dwwit m 111age 3 1 P ROC BET)IN 0 S 1, ddNcmhRru&1n And[lw,ARmxiatad traffa8- 7w ILannaig 2 w4m isma.-,mass RAN-or: 5=1 ewring.Indies 2 and Zuwti iV CfwarhLsjft iriqwdctod*.c applicant in commie 3 ant]3cnilmiren. Ws&V, And-wc wlIl c)o-rivritic Lhe 3 ynd,,a wqhbKTIiood Lvov to aridmqa de conccrn� 4 (Xiolicir 26th utixting of'llix Planning And Zoning 4 regimfing the frrolcct. Tfi.-applicant flm WiT13 jtw iio,%11w, 5 Co-nilission,and aqR liar yoa will jidir wifth us an the 5 Friday after thc wit:xtitig, 6 Plo*to ft flag, 6 Staff undersm ids that tibc mcm Jim agruad 7 (Thmupon,ittit;Nedgm of A14%ioAm cAw 7 rd€swop pw s1 fiat sr P as xnfnt attad. mr.r3Uw4-,T,0w 1whod-) 8 pRNW01t of dr,R40A if,here Lmighc as WCH as the CUMMEWWR&TRA1*)R: AV first ih3n On 9 applic-nit. And I CEM w4 ;Y may Questions- III ific AgaiRla R to witsidcr 1W approval d the mirmlirs of to C-Z1-MNWW0-;5R STRAMQFz Arty e a i orrs 0" 11 Ov oiaetntg of()Ltobrr 4w 12th,2Q05 My.,Roy. I1 smM Thank you, We will vprrt Llic-public hating ml is 12 110y,Y". I 10cr to Page 12 +.v applicam 1WtC And(to OWY Wish W XPLN11•7 13 33:. I'w mintom do not t the mutes of the v0W. 13 MR.W-LLAK i aim bets. And my,nammn,;-q 14 And it seems they?d=M M-kxi thz resutin;of the wobm f4 flabby Doilak wifli Cj&A CknouftanU. Midi I'd be bappy at o, I tin twwmber tt,but inay t�dmax,Nhoukl be RkmitUdy 15 amsmvir any quoliois. A5 LhGplamicr said we did owct 16 officially to put is dawm. 16 that vory'next Friday and bad a good intreang mb OL, 17 NIS.C-ARVENTIER We'll lokf-,CAM Of OVIL 17 E1w=wmT'm Assorimiort expWining how wctwimu Elbow our 18 kfrd C"U'ry"a"1 18 pw pjo,az4(itLy onoapt wilb the b>,jjk, And Ibc.TiLwo 19 03MOS5EWER ROY;WWI OW Q0=6011i,1 19 vm workrA"with tb=i tho isst i1xil they had Swwvm 20 snow approval of t1w mintno. X aboul'al tic iml P&Z 21 SIRAWifi,JXT W tear,-11 q=)r!& 2f WMM118310NERSTRANGE. had W1121 We'K 22 iomm Issommm LAGU•-mxund• 22 qo;ang is-is Lbo agrecd upon plan? �23 we have a im-lion by 23 Ma L)OLLAr-c-orw.t. !'%v a- 24 tiny, it 24 ki 90rond by Mm Ho h. Please,vote, 24 ximmiRw s kind of1wid w 25 71tv,vat:passes M. 25 sx. Paget Prip 4 1 Nat ibmn m ft AFadm it our Consent; I MR-DGLLAY,: Wdl.krr,14V S:SW W 2 A%.mida. And L&pbinning and Zf.%,ing(7onninkiian had the 2 got Lhc to tioil ham, This ow.is a link,US wr To 3 4�ppnfwftity 0 n with Staff prior:01018 fat's almrin a S�W 11 IEWI a!04,ak-ArlO 4 in it wurk w,;,ron,aixl1 to mvivw 111 of flit itz"'s on Or, 4 5 Comma Agvndai- And,-so do=Inivo a m(nion for Oar 5 mx,wLiiAK! And 0,fm I kind of gn,kccp 6 appioval of the Consent AgOndA• 6 t1m iijpiei up tYx And kind of more jjnpwmndy is how 7 03WESSIK)NIPIR,HOOT, 7 Vr,,W,n=Tl e�--the drivc-Throuo as fat as adding (irnz 8 fXot&j o s s to K m; sips mj e� w wr,b a vu a ,mdl7 8 addiliong!5)vubs aiwtg,this driwAhrough lone,as card 9 X1P,1MW:1KiNt4A THffi0U#,AUX "AW010- 9 jiuck up as Well AS ffteir conczirns abaw Lbeis-it to CDMMn%fJNF1R SrRANOB 'A"t b4N=a M06011 IrY current nomotpunt silo fvw 11wir-,mbdivisim,Pjnd how that I Tjr,f1pli,a trd.by T)r.ILWhadcaux- lls:osv,voto was gonig to Par ma inwinbd and media ortatud" l2 AM d1j,VoW pwiwq 7-0- 12 And tbiq k kiml of dw ouflinc oftlic- 13 • e rt"t iwm on o=Apmda nra putdiu 13 wpcealtnit thstl viVJ•,(itac up w.h1i on how aik bt,,nk w-ps goris 14 lic-mringm. We haw,one]-whlil bmifing tOD04 wbirlik IS 14 to water 010exulant;monuircilt pyrn,the chluch--I fbain No.4A. And this is kit dL,—qppmwqt of a rooskic4t 15 meats,111 hojn-&5�W=,R AIL"I'L W)hlg Ul looimAiij 111t, for a spodric Ux.,FIA"it fcw approxilTimly W4 seas W. 6 bUIS and S1.11 rL and W,VWa piR�tO 01404 N0 131C W&KAWI 7 17 allaw for a&iwtUOUFJ1 fUihtY- M5,Shtlkntl landwalsiog to lbtlp sliiold%mi--thm finis c,-Ltrffoqtzl 'hal lb 1AS,SWLMN:000d covmirg. Th.%ilam igi lb w ih.t A dVy had 0a 19 ContimmiLm k0a 21)wiu Iwafirig"Irst brought maiv 11to 19 BUT t1ley Undt". UXId JW CXPIA1111PR WC )tl The 20 had to put thi,drive-dwou0i on thm smic nod the wluxk: 21 is fc,A Sr�"jyjc Tj, penriL icir a dria-c-1hroUgIl 21 purptm.of-fbr traffic flow and avr2Abirig,. So it W03 22 for dw,Proposed Nmrdumr Bank At 010 Cc=m of sanklmn 22 a P-my good nactifig. 23 Boulvard and T'-aoilcy Lane: 23 24 As ym T"I,die Sundown Ranch Hmraowum 24 exam."twoNER AV 1'. 1 IV=Was .loo a 25 I'Lqsocialion W goinz concLinis about 114 locakion of fl4 25 cowwL about the trash diainpOers. PLANNING AND ZONING MINUTES OCTOBER 26,205 Pagc, I - Page,4 9 con&-moul-M Page 5 Fags 7 1 ML UOLUtk: WL12,IbPF's cor=t. Arid I havu.an electric tra.V-r Lhat'g,m Or ofIT10sibn sick-of Lh,a 2 ILfIfY WU eXP[anftbd,I Meari,U=L's The trash"!pqWt. 2 qW, which is wlx:m-'Ax.'m ons to bc xRle to bi=k off 3 It's the orst before tb:trash dump wus up a firldc bit 3 of and not ha-t%to worry about losing our okxtricat trem 4 farditT MW aboat em-, Stiff mWk U's mova,it bock 4 whoever bnWs on flic other Ni z of the stmet. 5 item and on tho laDdscape phn.the dumpster--after 11ity 5 Onrwatw meter is whm their driveway w,,.q nmllpxi it W:ms CpOosod-,W&nm,sceocftcd Arood,and goin8iobc% 7 licy Unctitmm-4 awl.%t rdaUy oJ41an't put 11 anywhm 7 ag=mnm Aid I think it waa,as Bohby Said,a,mr), 8 elm ot)the sjW. 8 good nweing. So%r hffvc our waW. and r4corwiA lnk.n 9 So!thailk we've tney.Oho staff's 9 Cair,of, ]a reoi=leftls aftd oxNaanad to EiV1==WE=&Why--WhY 10 l--as you 0 sugpswd followed t1-ffoiAh j I is thm and Low We're going 10 Sam it I I with thet erpmerillig delm"Oreat.Con,=ang,4;Tafflc 12 owmmioNER iirmr And what c,,i that 12 signal. And�ofr*bt zicm,t14 traffic eoutor,we 13 Cloud-Ow thing over the wp? 0 alm4y haw itraf`;W counts back., Tht*-'m not sufflciva 14 MR.LY)LLAK: 1,bv c1md--I'll kifid of read 14 fbW 4 S 1pal yam, [%tL wk-D tl.Jqy It"in ftir ftafi-W I(, 15 Haig. It Says Ed]3inKjqw-n Mandl[LiEtwimiktis.bolding withia 15 iriupnta t analysis„Dud Voulkav Las amumki ox that that 16 ft clmdcd ama to he contained--IS:"n=md to the t 16 would push tho nutriben owner dm mquiramems to get a :7 Nortbatitt-imp,40on and uiox4ram- IIi offior WX41,t]it4 ly 17 uaffic&igniiL SQ 1h4t ld,bo in ftovork3 aswcll 18 have°°ih y halve sonic]fights that lot tip IN •signs, 19 So I-I wam 10 Ray that we support*is 19 We're Ong to lie that into the Ovarmal meter.or L4- 1-4 bank,and we suppr a bank,fin oreal!,io tlx llm -V bmjk,a-,;iAvll as tic,diat 14t bit of irtipfl"5 fimi 20 p 21 ifrig;Am iliat aril in with t1w,irri-SpI[on s Ys wn or 21 something. Sic)just dot nk ym-to the Planning arui Zainng 22 U-Norlbsiar BAR"k, 22 fur 1waring mr cromcurjls itod t°r Nurffislat The mcetbiE with 23 (VNIMMONER HG1,1: TIMInk YA.M, 23, L and working that out. 24 COLMMMUMEAVRARON WM!d YOU 51.*that 24 T hank)VU for YOUr 25 pieta"upjust 4 Haw W.so I can See the dumpsbu [25 oullimIn". Paga 6 I thhig? AM rfgbt. 7hapk you, I COMMESSIONF-R 4TR's-ME ArIYWMe13a;'? That lm 2 MR rxA.E.Ax- W,,Choir uxi%ti mg water 2 ffic mity cArd eve had. Is flIcro a nyom clso wino.wighw to I inctiff itim waters thcir whole cntryway lit right that in 3 spmk fcT Ija i1vin? I had no cards speaking against,to 4 tic.driveway, So ftt wgser mter is Ong m Have to be 4 -AV Will Clow ft Public hmrblg 5 relented. Som'rejust going to slWo it up, 5 Dot ue have a i-raction tai this i1cm 6 CO". I&MONEft STRANOB ,any n*=qUe$Ii01'18 6 W,Roy- 7 a tho apphoarO Umiik yotl very iMcb. COMmISSIONEIR ROY- In MEIAU rV,IVY 4tl0fim.1 8 1would mention if anyhoo wijbLs jtt sj.=k S Want In qaytbaa you in,V=develo sr. E flank lhisfig 9 e4lrw for CT Wj#dngt"s itan"*CY 2=j to havc I Ukd iI --thi,,way it was M ndkYJ is vUl 011ir good dale hbor to out a ycllnw cuTd agal mTn it in at the fret. Is 11m, 10 Nerbmr)xNm3jd ba,,,e wanz�l it v)hAve 1jappeo, Anel I H a ry atxc€-w lwm who WisIrs 10 1311cak for this IWM? I I "n mdaisitind that maybt,you didn't disk abalo is a'Ih,- 2 Is jh=any=h=who wisjk8 io g", -a-k 12 bq3inning. 13 Arid one,oflieT 1,[n1z correction,wv did rxcm i apainsi this i=:? 4 mik wywcuK, [,m fi=to spank for 11w ism 1 instruct,we mques&L 'nt=� s a d iffact,=- 5 :15 by lcgA[5mv tin se ago that was,�.an't rcquin or instm(,; Zcnualj�y- 11 my Coar-ag sonw surprise, Blit I Ht it my i 6 m-sponsibilily to 10ually sh1w up- 16 tbmkjmd3o twng�- Batmv,vckarrx�d anus gmxj 7 C04,Jog%ONER STRANOM Ofln Y*U,S31VC 14g)i011r 17 vAjn=ujLkajj-;jns alw1ilis lIcip,3- tiai 1 would like,w move a ria3m and addlictss,pklaso? is appmwal of t1jis,kin,4A, 19 ttz.BOWL 14R,malt B4owlrx,17114 Hotlaw RidtV. 39 s&-,umd. 20 T�jNvarjd pmgaamt of Am Sundmi Rucit I Intiloownm 20 SURAN414.' WC IM 2i AsViCiMiUlt. f+jncc I nude thtwguy%qly.yw up aLi-min this 21 Nit.Reny. n gecon(!by Mrs.Hall. And I would qM lb-m 22 mv6,,l figamd I WUT show yak tip anal I uls,11 waNwil To 22 m awn Ms.800tom&;Rmr-in an let vacatkin to make flial .0 yrwke sum that vmno-d sheir i0ans actually vkz-c,7TCsCnt*d 23 matting. so VV APPM iate Your o(gorts as wt1ll- 24 ir,lhmt of thr actual Planning and Zmhog Cortuninsion. 24 Is REWtv ally otiff dimmion,an this ke,10 125 -floe Ilaineowners mmmiation actimally does 125 l anly F t nas snia l otrua rs, IL's gait Going CoAlcm - PLANNING AND ZONING MYNUTES OCIVRER 26,2005 Page,5-Pap 8 10 CA)UdWS61t"t Page 9 1 sn•vow,bLd I fml ca mpdW to s,,W it- I&ff,haw i0wic po-sunal concert,wiffi ilbe,stackh-S 01-mit una4i 3 pwsibly occim in*osc&Avin Wax or if fficpyhogr 4 mick shows tip at 2,-,00 m FTiday allmmaast tad bloLls up 5 the parkui�Int flut I'vc bmi aspawd by stud`that 6 ag iug has revk-wed thaw and sea:no rmblamwkh it,. 7 So if Ity om no pmhlem wAh it,I guppasz I d(ft a atha. But I Wall WL)aTY akjul alat was day- 9 So we bow a-um Ala,.a 5rcord m'vj jw 10 6�wu.�,sivai,gi w("d you,pleaw vcLA I1 And dr-voir passcs 7-f1. 12 AAd thc,only ctkx km on orw tWwk is `3 wmsidoT arty fwmAp"ait=s Does anyonc haw arty 14 imini? If trot,vm wall movwn m mwiftg at 6A2- I� (Emd Proavdings.) 16 17 19 19 20 21 23 24 25 ANWTW(', AN 11 ZONI NG MI MUTES OCTOBER 26,2005 Vage 9-Patyc 9 11 ATTACHMENT Letter of Opposition NOTICE OF pUBLIC HEARING S05-0001 a public hearing on Wednesday, The Planning and Zoning commission of the city of Denton Will hold October 12, 2005, to consider making a recommendation to city Council regardini a request 41or a r permit for approximately 0.904 acres to allow a drive-thru facility. The site is in a 1�pecific Use zoning district The subject property is generally located Neighoorhood Residential Mixed Use(NRMU) sley Lane. A bank with a drive-thru is proposed, at the southeast corner of Sundown Blvd, and Tea (sc5-0001,Northstar Bank,Lori Shelton) ers of City Hall located at 215 E. The public hearing WJ[start at 6:30 PLMI in the City Council Chamb (200) feet of the McKinney Street, Denton, Texas Because you Own property within two hundred Deity. the Planning and Zoning Commission wouid like to hear how You feel about this subjw,;t prol f the public heafing Please, in order for your opinion to be taken into request and invites you to attenG account, return this form with your comments prior to the date of the public hearing, (This in no waY prohibits yet., from attending and p9rocipating in the public hearing.) you may fax 't to the number located at the bottom or rnail it to the address below or,drop it off in-person� Planning and Development Department 221 N.Elm ST Denton,Texas 76201 Attn. Lori Shelton,Project Manager the percentage of landowners that support and oppose the These forms are used to calculate [n support and in Opposition- request. The Commission is informed of the percent-of responses Please circle One' est opposed to request In favor of request Neittral to reclu Reasons for Opposition: Printed Name: mailing Address-, Telephone Number: P hysi call Add re ss of property within 200 feet: LLC1Ty'_0FDE1VT0N, TEXAS CITYIHALLWEST - DENTON,TEXAS 76201 W,3A9,8541 (9940,34q-7707 12 SA0ur Documents\Ordinances1051S05-0001.doc ATTACHMENT 9 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT FOR A DRIVE-THROUGH FACILITY ON APPROXIMATELY 0.904 ACRES OF LAND, GENERALLY LOCATED AT THE SOUTHEAST CORNER OF SUNDOWN BLVD. AND TEASLEY LANE,LOCATED WITHIN A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT AND IS PLATTED AS LOT 1,BLOCK B SUNDOWN RANCH COMMERCIAL LOTS IN THE CITY OF DENTON,DENTON COUNTY,TEXAS;PROVIDING A SEVERABILITY CLAUSE;PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF$2,000.00 FOR VIOLATIONS THEREOF,AND PROVIDING AN EFFECTIVE DATE.(505- 0001) WHEREAS,G&A Consultants,Inc.has applied for a specific use permit for a drive-through facility for Northstar Bank within a Neighborhood Residential Mixed Use(NRMU)zoning district classification and use designation, on approximately 0.904 acres,generally located at the southeast corner of Sundown Blvd. and Teasley Lane, and is platted as Lot 1, Block B, Sundown Ranch Commercial Lots. WHEREAS, on October 26, 2005, having found that the approval criteria of Sections 35.3.4.B.e and 35.13.11 of the Denton Development Code had been satisfied, the Planning and Zoning Commission recommended approval of the specific use permit for a drive-through facility; and WHEREAS, the City Council concurs in the findings of the Planning and Zoning Commission, and finds that the Specific Use Permit is consistent with the Denton Plan; 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 as true; SECTION 2. The Specific Use Permit attached hereto and incorporated herein as Exhibit A is hereby approved for the property described in the caption of this ordinance; SECTION 3. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end, the provisions of this ordinance are severable. SECTION 4. Any person violating any provision of this ordinance shall,upon conviction,be fined a sum not exceeding$2,000.00,with each day of violation constituting a separate and distinct offense; SECTION 5. This ordinance shall become effective fourteen(14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle,a daily newspaper published in the City of Denton, Texas, within ten(10) days of the date of its passage. PASSED AND APPROVED this the day of 52005 EULINE BROCK,MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY B'c i i PAGE 2 EXHIBIT A - .1 5 D, N RMG1,4 LSMµf.iRlCy(r l:U:'5 I %IIS`'INDOWN BLVD : i5 I "i [Cl 50.39 I ��! A".00,03 tF 2t!�s /o of PT $ +cas a 25,x., �. _ Xs f. - i d3 act { f Proposed One Star! r a I 5570 SF Bonk 1141 Iding x fF=652.0 LjLj 7R-- y-O.:n i :.:i � { /�i ` tw{:7 N?taU I r ,c K ,-w Iiul �,",• ,- -- 1 _ r,x.40.kc I SUNOOM4 R"Ch CtR MLrC AL 1.0 1r'-- - .,c y w,, rrsr f"n— �.�_� araxrs vl!annau PAGE 3 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Economic Development/Downtown Development CM/DCM/ACM: Mike Conduff, 349-8306 H SUBJECT Consider adoption of an ordinance of the City of Denton approving a lease agreement between the City of Denton and John Eric Schmitz for the lease of a portion of street right-of-way for the constriction, occupancy and maintenance of a porch area in conjunction with a business located at the Northeast corner of Walnut and Cedar Streets, which is commonly known as 209 W. Hickory, Denton, Texas; and providing an effective date. BACKGROUND The Economic Development and Downtown Development staffs have met with Eric Schmitz, owner of 209/209 B West Hickory, regarding the expansion of Saltwater Caf6. The proposed plan is to build a patio area out from the existing front and side of the building into the right of way at the corners of Walnut and Cedar Streets (see attached drawing). City Council discussed the proposed project at their September 6, 2005 meeting, at which time staff was instructed to negotiate a lease with Mr. Schmitz that would accommodate the project. Staff met with Mr. Schmitz, reviewed the appraisal information and established a lease rate. The lease provides the following: • A term of 30 years with the option to renew for two additional 10-year terms • An annual lease rate of$1,364. • Requires that constriction of the expansion begin within 180 days. • Requires lessee to submit constriction plans for review and approval. • Requires the design and constriction of the sidewalk to be reviewed and approved by the City Engineer. • Support of the City Council for a variance to the width of the sidewalk, due to site constraints. OPTIONS Approve the lease as written Amend the lease Deny approval of the lease RECOMMENDATION Staff recommends approval. 1 PRIOR ACTION/REVIEW This project was discussed at the City Council Work Session on September 6, 2005, at which time staff was instructed to work with the property owner to create a lease and ordinance supporting the expansion of the property. FISCAL IMPACT The lease will result in an annual lease payment of $1,364, with adjustments occurring every other year based on the United States Consumer Price Index for the Dallas-Fort Worth area. ATTACHMENTS A. Ordinance B. Proposed Lease Agreement C. Property Description D. Site Plan Improvements E. Appraisal F. Site drawing Prepared by: Julie Glover Downtown Development Manager Respectfully submitted: Linda Ratliff Director of Economic Development 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND JOHN ERIC SCHMITZ FOR THE LEASE OF A PORTION OF STREET RIGHT-OF-WAY FOR THE CONSTRUCTION, OCCUPANCY AND MAINTENANCE OF A PORCH AREA IN CONJUNCTION WITH A BUSINESS LOCATED AT THE NORTHEAST CORNER OF WALNUT AND CEDAR STREETS,WHICH IS COMMONLY KNOWN AS 209 W. HICKORY,DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, John Eric Schmitz (the "Owner") is the owner of the west one-half of Lot 1, Block 2 of the Original Town of Denton, being at the northeast corner of Walnut and Hickory Streets, and commonly known as 209 W. Hickory,Denton, Texas(the"Owner's Property"); and WHEREAS,the Owner has requested the lease of adjacent street right-of-way for the purpose of constructing,occupying and maintaining a porch area in conjunction with a business on Owner's Property; and WHEREAS,the City Council has been presented with a proposed lease agreement between the City of Denton and the Owner, a copy of which is attached hereto and made a part hereof as Exhibit "A" (the "Agreement"); and WHEREAS, the City Council hereby;finds that the Agreement will promote economic development, enhance Denton's downtown development, and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference SECTION 2. The Agreement is hereby approved. The City Manager, or his designee is hereby authorized to execute the Agreement on behalf of the City and to carry out the City's rights and duties under the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 52005. EULINE BROCK, MAYOR S:\Our Documents\Ordinances1451Schmitz Lease Ordinance.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDE CITY ATTORNEY BY: 4 1I Page 2 LEASE OF CITY PROPERTY This Lease Agreement is made and executed to be effective this day of , 2005 (the"Effective Date') at Denton, Texas,by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor" or "City", and John Eric Schmitz,hereinafter referred to as "Lessee". WITNESSETH: WHEREAS, Lessee is the owner of certain real property located at the northeast corner of Walnut and Cedar streets in the City of Denton, Denton County, Texas, commonly known as 209 W. Hickory Street which is the west one-half of Lot 1,Block 2 of the Original Town of Denton and being more particularly described in Attachment "A" attached hereto and made a part hereof by reference("Lessee's Property"); and WHEREAS, Lessee has requested that it be allowed to lease a portion of the street right-of-way adjacent to Lessee's Property in order to construct, occupy and maintain a porch area in conjunction with the operation of a restaurant on Lessee's Property; and NOW, THEREFORE, for and in consideration of the promises and the mutual covenants contained in this Agreement,the parties agree as follows: 1. TRASEDPRFMTSFS Lessor, for and in consideration of the covenants and agreements herein contained, to be kept by Lessee, does hereby demise and lease unto Lessee, and Lessee does hereby lease from Lessor, for the lease term described in Article 11, the following described land situated in Denton County, Texas: A. Land. A tract of land, being approximately 1,234 square feet, drawn and outlined on the site plan (the "Site Plan") attached hereto and made a part hereof by reference as Attachment `B attached hereto and made a part hereof by reference (the "Leased Premises'). On or before 30 days after the Effective Date, Lessee at its own expense shall deliver to Lessor a survey and metes and bounds description of the Leased Premises which will be attached hereto and made a part hereof as Attachment "C". Should Lessee fail to deliver the survey and metes and bounds description within said time period, the Lessor at its option may extend the time period for compliance or terminate this Lease Agreement rendering it null and void and of no further force and effect. B. TUPROVEMENTS PROVIDED BY LFSSOR: NONE: There will be no improvements provided by Lessor. C.. On the Leased Premises, Lessee shall construct a porch(the"Porch"), and other improvements as shown on the Site Plan the Improvements. The Improvements are also illustrated on Attachment "D" attached hereto and made a part hereof by reference. In addition, Lessee shall construct a city sidewalk and install landscape improvements within the city right-of-way outside of the Leased Premises Page 1 as shown on the Site Plan ("City Improvements") . The Improvements and City Improvements shall be commenced no later than 180 days after the Effective Date as evidenced by the issuance of a building permit (the "Commencement Deadline") and completed no later than 720 days after the Effective Date as evidenced by the issuance of a certificate of occupancy for the porch structure and acceptance by the Lessor of the sidewalk (the "Construction Deadline"). The City Improvements shall become the Lessor's improvements upon completion and acceptance by the City. Notwithstanding anything contained in this Lease Agreement to the contrary, a failure to meet the Commencement Deadline or the Construction Deadline may, at the sole option and discretion of the Lessor, result in the immediate termination and cancellation of this Lease Agreement upon 30 days written notice of cancellation to Lessee. In such case Lessee's rights under the Lease Agreement will immediately cease and be forfeited, and the Porch shall be removed from the Leased Premises at the sole expense of Lessee. If Lessee fails to remove the Porch within 90 days after termination, then the Lessor may do so at the expense of the Lessee. Lessee shall pay Lessor such costs of removal and restoration within 30 days after receipt of an invoice from the Lessor. If the invoice is not paid within said time period alien is hereby established against Lessee's Property to secure payment. In such case Lessor is authorized to file an affidavit in the Denton County Real Property Records against Lessee's Property to evidence the lien. D. APPROVAL OF CDESTRI JCTTQN PLAN . Prior to commencing construction of the Improvements Lessee shall submit to Lessor construction plans for review and approval to make certain that the construction plans are in conformity with the Site Plan. This review is in addition to any review required by the Building Official for issuance of a building permit and to insure compliance with City Codes. No later than 60 days after the completion of the Improvements Lessee shall deliver to Lessor as-built construction plans of the Improvements in a form acceptable to Lessor(the"As-Built Plans"). E. STDF.WALK_ The sidewalk shown on the Site Plan will be reviewed and approved by the City Engineer and will be accepted by the City as a public side walk upon completion. The Site Plan shows the side walk as 5 feet in width. The City Development Code requires an 8 foot wide sidewalk. Because of the physical constraints at this location Lessor's staff will support a variance before,the Planning and Zoning Commission. F. S AFF.TY MEA ST IRES DT TRTNCT CYINSTRT TC:TTC)N. Lessee shall be responsible for providing all safety measures during construction such as barricades to insure that motorists and pedestrians are adequately protected from the construction activities. G. T F.ASFT-TOT D CONNF.C`.TF.T)TOT SSFF,=pEOPF.RTY. This leasehold shall not be severable from the ownership interests of Lessee's Property and the covenants, terms and conditions under this Agreement shall be binding upon and inure to the benefit of the owners and subsequent owners of Lessee's Property. Page 2 II. TERM The term of this Lease Agreement shall be for a period of 30 years, commencing on the I" day of December, 2005 and continuing through the 30th day of November, 2040, unless earlier terminated under the provisions of the Lease Agreement (the "Lease Term'). Lessee has the option to renew for 2 additional 10 year terns by giving at least 180 day advance notice before the end of the Lease Term or the first 10 year option period, as the case may be. The rental and terms to be negotiated shall be reasonable and consistent with the then value,rentals and terms of similar property in downtown Denton. III. PAYME=S, RF.NTAT S AND FEES Lessee covenants and agrees to pay Lessor, as consideration for this Lease Agreement, the following payments,rentals and fees: A. LAND RENTAT.shall be due and payable in the sum of$ 11.00 per square foot or $1,364 per year (the "Original Rent"), payable annually in advance, with the first payment on the Effective Date and each subsequent payment on the same day of each year during the term of this Lease Agreement. The first payment is based on the estimated square footage of the Leased Premises shown on Attachment "A". After the survey is completed and attached hereto as Attachment `B" the rent will be adjusted based on the actual square footage shown on the survey retroactively to the first lease payment. B. PAYMENT, PENALTY, ADJ„iSTMF.NTq. All payments due Lessor from Lessee shall be made to Lessor at the offices of the Director of Economic Development as provided in XII.D below, unless otherwise designated in writing by the Lessor. If a payment is not received on or before the 15th day after the due date, a five percent(5%)penalty will be due as of the 16th day. An additional penalty of one percent (1%) of the unpaid rental amount will be due for each 30 day period thereafter that the payment is delinquent until the unpaid rental payment is made. The Original Rent for the Leased Premises shall be readjusted at the end of every other one year period during the Lease Term beginning December 8, 2008 on the basis of the then current United States Consumer Price Index for all urban consumers (CPI-U) for the Dallas-Fort Worth Bureau of Labor Statistics. The adjustments in the yearly rent shall be determined by multiplying the Original Rent by a fraction, the numerator of which is the index number for the last month prior to the adjustment, and the denominator of which is the index number applicable at the execution of this Lease Agreement. If the product of this multiplication is greater than the Original Rent, Lessee shall pay this greater amount as the yearly rent until the time of the next rental adjustment as called for in this section. If the product of this multiplication is less than the Original Rent there shall be no adjustment in the annual rent at that time, and Lessee shall pay the previous year's annual rent until the time of the next rental adjustment as called for in this section. In no event shall any rental adjustment called for in this section result in an annual rent less than the previous year's annual rent. The adjustment shall be limited so that the annual rental payment determined for any given two-year period shall not exceed the annual rental payment calculated for the previous CPI adjustment by more than twenty percent(20%)percent. Page 3 If the consumer price index for all,urban consumers (CPI-U) for the Dallas-Fort Worth geographical region, as compiled by,the U.S. Department of Labor, Bureau of Labor Statistics, is discontinued during the Lease Term, the remaining rental adjustments called for in this section shall be made using the formula set forth above, but by substituting the index numbers for the Consumer Price Index-Seasonally Adjusted U.S. City Average For All Items For All Urban Consumers (CPI-U) for the index numbers for the CPI-U applicable to the Dallas-Fort Worth geographical region. If both the CPI-U for the Dallas- Fort Worth geographical region and the U.S. City Average are discontinued during the Lease Term, the remaining rental adjustments called for in this section shall be made using the statistics of the Bureau of Labor Statistics of the United States Department of Labor that are most nearly comparable to the CPI-U applicable to the Dallas-Fort Worth geographical region. If the Bureau of Labor Statistics of the United States Department of Labor ceases to exist or ceases to publish statistics concerning the purchasing power of the consumer dollar during the Lease Term, the remaining rental adjustments called for in this section shall be made using the most nearly comparable statistics published by a recognized financial authority selected by Lessor. Should any taxes be levied against the Leased Premises or the Improvements. payment of such taxes shall be the responsibility of the Lessee. N. RIGHTS AND nFIUGATI,O-NS OF I RgSF.F. A. I ISR OF LEASED PREMISES. Lessee's use of the Leased Premises is limited solely to the construction,maintenance and use of the Improvements shown on the Site Plan and As-Built Plans in conjunction with Lessee's Property, unless Lessor gives its advance written approval to the contrary. B. STANDARDS Lessee shall meet or exceed the following standards: 1. Address_ Lessee shall file with the City Manager, or his designee and keep current its mailing addresses, telephone numbers and contacts where it can be reached in an emergency. 2. List. Lessee shall file with the City Manager, or his designee and keep current a list of its tenants and sublessees. 3. C'nndnrt. Lessee shall contractually require its employees and sublessees (and sublessee's invitees) to abide by the terms of this Lease Agreement. Lessee shall promptly enforce its contractual rights in the event of a default of such covenants. 4. Utilities, Taxes and Fees. Lessee shall meet all expenses and payments in connection with the use of the Leased Premises and the rights and privileges herein granted, including the timely payment of utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed. Page 4 5. Law-&. Lessee shall comply with all current and future federal, state and local laws, rules and regulations which may apply to the conduct of business contemplated, including rules, regulations and ordinances promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits. 6. Maintenance of Leased Premises. Lessee shall be responsible for the maintenance, repair and upkeep of the Improvements, including the mowing and maintenance of grass, other vegetation and landscaping on the Leased Premises, and shall keep the Leased Premises neat, clean and in respectable condition, free from any objectional matter or thing, including trash or debris. 7. TTnanthori7ed rise of T,P.nsed Premises. Lessee may not use any of the Leased Premises for any use not authorized herein unless Lessor gives Lessee prior written approval of such additional use. S. Chjit Possession. Lessee shall quit possession of the Leased Premises at the end of the Lease Term or any renewal or extension thereof, or upon cancellation or termination of the Lease Agreement, and deliver up the Lease Premises to Lessor with the Porch being removed. 9. Indemni Lessee shall indemnify, hold harmless and defend the Lessor, its officers, agents and employees, from and against liability for any and all claims, liens, suits, demands and/or actions for damages, injuries to persons (including death), property damage, (including loss of use), and expenses, including court costs, attorneys' fees and other reasonable costs, occasioned by or incidental to the Lessee's occupancy or use of the Leased Premises or activities conducted in connection with or incidental to this Lease Agreement, including all such causes of action based on common, constitutional or statutory law, or based in whole or in part upon the negligent or intentional acts or omissions of Lessee, its officers, agents employees, invitees or other persons. Lessee shall at all times exercise reasonable precautions on behalf of, and be solely responsible for, the safety of its officers, employees, agents, customers, visitors, invitees, licensees and other persons, as well as their property, while in, on, or involved in any way with the use of the Leased Premises. The Lessor is not liable or responsible for the negligence or intentional acts or omissions of the Lessee, its officers, agents, employees, agents, customers,visitors and other persons. The Lessor shall assume no responsibility or liability for harm, injury, or any damaging events which are directly or indirectly attributable to premise defects, whether real or alleged, which may now exist or which may hereafter arise upon the Leased Premises, responsibility for all such defects being expressly assumed by the Lessee. The Lessee agrees that this indemnity provision applies to all claims, suits, demands, and actions arising from all premise defects or conditions. ANT) PROTF.CI THF. IRS SOR FROM THE CONS,-EQITFNC`.FS C)F THE Page 5 T,ESSOR'S OWN NEGLIGENCE WHILE LESSOR„IS PARTICIPATING IN TENS_TEASE_ AGREEMENT WHERE. THAT NF,GUGF.NCF, IS LA CONCURRING CAUSE OF THE INTTTRY,,,,,DFATH, OR DAMAGE NOTWTTHSTANDMG THE TERMS OE THE PRECEDING SENTENCES, THIS INDEMNITY J?R MdSION DOES NOT APPI Y-T ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, S1111 AND LIABILITY WHERE THE INTTTRY, DEATH-,DR DAMAGE R EST JUS FROM THE SOLF. NE,GLTGE.NCEE, OF THE,,,LESSOR OR ANY OF TES EMPLOYEES, CMM A C:TOR S, OR A GFNTS, UNMIXED WITH THE FAT ITT OF ANY OTHER PERSON OR FNTTTY C.SIGNS. No signs, posters, or other similar devices ("Signage") shall be placed on the exterior of the Improvements or on any portion of the Leased Premises without the prior written approval of Lessor. Lessee, at its sole expense, shall be responsible for the creation, installation and maintenance of all such Signage. Lessee shall pay to Lessor any and all damages, injuries, or repairs resulting from the installation, maintenance or repair of any such Signage. Any Signage placed on the Leased Premises shall be maintained at all times in a safe, neat, sightly and good physical condition. All Signage shall be removed from the Leased Premises by Lessee immediately upon receipt of instructions for removal of same from Lessor, including without limitation, upon expiration or termination of this Lease Agreement. If Lessee fails to remove the Signage then Lessor may do so at the sole cost and expense of Lessee. If Lessee fails to remove the Signage within 90 days after termination, then the Lessor may do so at the expense of the Lessee. Lessee shall pay Lessor such costs of removal within 30 days after receipt of an invoice from the Lessor. If the invoice is not paid within said time period a lien is hereby established against Lessee's Property to secure payment. In such case Lessor is authorized to file an affidavit in the Denton County Real Property Records against Lessee's Property to evidence the lien. D. ENTRY. Lessor and its designees shall have the right to enter the Leased Premises upon reasonable advance notice (written or oral) and at any reasonable times for the purposes of inspecting the Leased Premises, and performing any work, which Lessor elects to perform under this Lease Agreement. Nothing in this section shall imply any duty upon Lessor to do any work, which under any other provision of this Lease Agreement Lessee is required to perform, and any performance by Lessor shall not constitute a waiver of Lessee's default. V. COVENANTS BY LESSOR Lessor hereby agrees as follows: P-EACEFT TL ENTOYME,NT. Upon payment of all rent, fees, and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the Leased Premises and all rights and privileges herein granted. Notwithstanding the forgoing, the parties understand that the Leased Premises constitute street right-of-way. In that regard, Lessor shall not be liable to Lessee in the event a court of competent jurisdiction enjoins Lessee from using the Leased Premises under this Lease Agreement. In such case Lessee's sole remedy will be termination of the Lease Agreement. Page 6 VI. EMMLEMFMS Except as otherwise provided in this Lease Agreement, the Improvements constructed upon the Leased Premises by Lessee, except for the sidewalk, shall remain the property of Lessee during the Lease Term,or any extension thereof, subject to the following conditions, terms and provisions: No Improvments may be removed from the Leased Premises, without the written approval of Lessor. The Porch shall be removed from the Leased Premises at Lessee's sole cost at the end of the Lease Term, or any extension thereof or upon termination of this Lease Agreement. VII. STTRROGATION OE TAORMAGE Any person, corporation or institution that lends money to Lessee for construction of the Improvements and retains a security interest Improvements shall, upon default of Lessee's obligations to said mortgagee, have the right to enter upon the Leased Premises and operate or maintain the Improvement according to the terms of this Lease Agreement, for a period not to exceed the term of the mortgage with Lessee, or until the loan is paid in full, whichever comes first, but in no event longer than the Lease Term, or any extension thereof. It is expressly understood and agreed that the right of the mortgagee referred to herein is limited and restricted to those Improvements constructed with funds borrowed from mortgagee, those Improvements purchased with the borrowed funds, and those Improvements pledged to secure the refinancing of the Improvements, and does not include the sidewalk or other public improvements constructed by Lessee. VIII. ASSTGNMF.NT OF T.FASF. Lessee expressly covenants that it will not assign this Lease Agreement in whole or in part without the written consent of Lessor, which consent will not be unreasonably withheld. IX. 1NST JRANC'F A. R FO LMFD INST TR ANC E: Lessee shall maintain continuously in effect at all times during the Lease Term or any extension thereof, at Lessee's sole expense, the following minimum insurance coverages: 1. Comprehensive Commercial (Public) General Liability covering the Lessee and its company, its employees, agents, tenants, customers, invitees and independent contractors. Coverage shall be in an amount not less than $1,000,000 per occurrence and provide coverage for premises/operations, products/completed operations and contractual liability.' 2. All risk property insurance on a replacement cost basis covering loss or damage to the Improvements. Under no circumstances shall the Lessor be liable for any damages to fixtures, merchandise or other personal property of the Lessee or its tenants,including the Improvements. Page 7 B. COVFR AGE RF.CN]TRFMF.NTS: All insurance coverages shall comply with the following requirements: 1. All liability policies shall name the City of Denton, and its officers and employees as additional named insureds and provide for a minimum of 30 days written notice to the City of any cancellation or material change to the policy. 2. All insurance required by this Lease Agreement must be issued by a company or companies of sound and adequate financial responsibility and authorized to do business in the State of Texas. All policies are subject to the examination and approval of the City's office of Risk Management for their adequacy as to content, form of protection and providing company. 3. Required insurance naming the City as an additional insured must be primary insurance and not contributing with any other insurance available to the City whether from a third parry liability policy or other. Said limits of insurance shall in no way limit the liability of the Lessee hereunder. 4. The Lessor shall be provided with a copy of all such policies and renewal certificates. Failure of Lessee to comply with the minimum specified amounts or types of insurance as required by Lessor shall constitute Lessee's default of this Lease Agreement. 5. During the Lease Term, or any extension thereof, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessor. X. CANCELLATION BY LF,SSCIR In the event that Lessee shall file a voluntary petition in bankruptcy or proceedings in bankruptcy shall be instituted against it and Lessee thereafter is adjudicated bankrupt pursuant to such proceedings, or any court. shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall be divested of its estate herein by other operation of law; or Lessee shall fail to perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to correct such condition or cure such default and, if any condition or default shall continue for thirty(30) days after the receipt of such notice by Lessee, then Lessor may terminate this Lease Agreement by written notice to Lessee. XI. CANCELLATION By LESSEE Lessee may cancel this Lease Agreement, in whole or part, and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the Page 8 happening of any one of the following events: (1) issuance by any court of competent juris- diction of a permanent injunction in preventing or restraining its use of the Leased Premises or any part thereof for authorized purposes; or (2) the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of ninety (90) days after receipt of a written notice of the existence of such breach. Upon the happening of any of the events listed in the preceding paragraph, such that the Leased Premises,then the Lessee may cancel this Lease Agreement as aforesaid. M MTSCET.T.AN 01IS PROVISIONS A. ENTIRF ACTRREMENT. This Lease Agreement constitutes the entire understanding between the parties and as of its Effective Date supersedes ali prior or independent Agreements between the parties covering the subject matter hereof. Any change or modification hereof shall be in writing signed by both parties. B. RDMINCT EFFECT_. All covenants, stipulations and agreements herein shall extend to, bind and inure to the benefit of the legal representatives, successors and assigns of the respective parties hereto. C. SF.VFR ARTI,TTY. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, the entire Lease Agreement shall not be void; but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. D. NOI CE. Any notice given by one party to the other in connection with this Lease Agreement shall be in writing and shall be sent by certified mail, return receipt requested,with postage fees prepaid or via facsimile as follows: 1. If to Lessor, addressed to: Linda Ratliff Director of Economic Development City of Denton 101 South Locust, Suite 500 Denton,Texas 76201 Fax No. 940.349.8518 2. If to Lessee, addressed to: John Eric Schmitz P.O.Box 729 Argyle,Texas 76226 Fax No. 940-382-9932 Page 9 I E. HEADINGS. The headings used in this Lease Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement. F. GOVERNING LAW W ANTS VENT TR. This Lease Agreement is to be construed in accordance with the laws of the State of Texas and is fully performable in Denton County, Texas. Exclusive venue for any lawsuit to enforce the terms or conditions of this Lease Agreement shall be a court of competent jurisdiction in Denton County, Texas. G. NO WAIVER. No waiver by Lessor or Lessee of any default or breach of covenant or term of this Lease Agreement may be treated as a waiver of any subsequent default or breach of the same or any other covenant or term of this Lease Agreement. H. NO AGENCY. During all times that this Lease Agreement is in effect,the parties agree that Lessee is and shall not be deemed an agent or employee of the Lessor. IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the Effective Date first above written. CITY OF DENTON, TEXAS BY: MICHAEL A.CONDUFF,CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: zi,BY: ~ ERI CHMITZ Page 10 ACKNOWLEDGMENTS THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the day of 2005 by Michael A. Conduff, City Manager of the City of Denton, Texas, on behalf of said municipality. NOTARY PUBLIC, STATE OF TEXAS THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ff day of , 2005 by John Eric Schmitz. CHRISTINE A:DICK NOTARY PUBLIC, STATE OF TEXAS Notary Publk State of Texas Comm.UP.3.2-2009 Page 11 y ~ Attachment A ALL that certain lot, parcel, or tract of land situated in the W. NEILL SURVEY, ABSTRACT NUMBER 971, City of Denton, Denton County,Texas, and being the West one-half of Lot 1, Block 2 of the Original Town of Denton, Texas, and being more particularly described as follows: BEGINNING at a building corner found at the intersection of the South line of an asphalt road under apparent public use posed as Hickory Street and the East line of an asphalt road under apparent public posted as Cedar Street, for the Northwest corner of the herein described tract; THENCE North 89 degrees 55 minutes 28 seconds East with the South line of Said Hickory Street a distance of 30.01 feet to a building corner found for the Northeast corner of the herein described tract; THENCE South 00 degrees 02 minutes 33 seconds East with the West line of the East one-half of said Lot 1 a distance of 120.18 feet to a building corner found for Southeast corner of the herein described tract; THENCE South 89 degrees 47 minutes 34 seconds West with the North line of an asphalt road under apparent public use posed as Walnut Street a distance of 30.09 feet to a building corner found for the Southwest corner of the herein described tract; THENCE NORTH with the East line of said Cedar Street a distance of 120.25 feet to the POINT OF BEGINNING and enclosing 0.08 acres of land, more or less. Attachment B HICKORY STREET j?Gw w.a�DGw -`°x w Asa pQw��W,r LEGEND Al TFMvErnE Paver TSMN i ® ® rx�u�our _ X Xw f 70 MVM t jY p TFEE o ao ao I O ; Gn MAMHME i uj E E= SCALE:1'= 20' i U ,ecn p GMS NETM CE($EE wo M WA70 MVE i w O.E E=Y I I P PM wX i I Proposed Lease Area 1 ,I? (Approximately 1,234 sq. ft.) i � I J6UlpMG �— € I i16pCM C1(LSiMG � F' i EM E1S BO% 5 j ew+c. 1 a•q M1.aw r[-R nm A paw Nr.IX pdw aR`fX mom A` WALNUT STREET ZO'R ®� 1/[ �y ' Cp�CRETE SGLNµN �._•—_ � �pNC �� 41 1 � I � CVIC. ! I S1Rpl 1 ,I,d R q—z I I r i r� r/ 0 0'J j . I MULLBERRY STREET '"" u r ------ DOWN SkXrWtLX Attachment C On or before 30 days after the Effective Date, Lessee shall deliver to Lessor a survey and metes and bounds description of the Leased Premises which will be attached hereto as Attachment"C". i P ' 3 A0 W 9 � k� °�,� 'III .�:' r._ .m '.,,'�=�• awl Ea Q ' i.�Ff#if o �rxa�e,'� 6.��w■�wr�rs ��� ,i ,� xAk R 777 1 ! k �WV fat rr7, _ Ij IL Vp tir �� 11. 7� � alp�l # •, R�.r AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT- V05-0022 (Klement Laundry, Spring Brook PlanningGronp) Consider approving an exaction variance of Section 35.203.B of the Denton Development Code concerning sidewalks. The approximately 035 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Spring Brook Planning Group applied for a variance of Section 35.203.B of the Denton Development Code and the Transportation Criteria Manual concerning sidewalks along Main Street Mixed Use Collector. The applicant is requesting a variance to reduce the width of the new sidewalk along Wood Street from eight feet to five feet. The Denton Development Code (DDC) requires sidewalks as follows: "All developments shall, within a dedicated right of way or easement, provide sidewalks and/or Pedestrian/Bicycle facilities designed and located in accordance with the Transportation Criteria Manual and street classification along both sides of all streets within the development. " (35.203.B) Additionally the DDC further supports Pedestrian/Bicycle Facilities in Section 35.203.A3. The Criteria Manual requires the following Geometric Standard: 70' MIN C' 4TN. ROW C,' MIN. PARKWAY PARBKINGC LRA RING PAR WAY COMBINATION PEDESTPIAN 39' (BACK EF CURB) C[IMBINATI[I 8 PEDESTRIAN 6 BICYCLE FACILITY & BICYCLE FACILITY Figure I-1-A-15, Main Street Mixed Use Collector Section The Commission may recommend that this exaction variance be approved by the City Council if the following criteria is met: Sec. 34-6.(b) Criteria for variances from development exactions. Where the commission finds that the imposition of any development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute confiscation of the tract to be platted, it may recommend approval of variances to waive such exaction's, so as to prevent such excess, to I the City Council. Waiver of development exactions shall be approved by the City Council. The price the applicant(s) paid for the parcel, or the cost of the proposed building improvements is not a factor in determining reasonable costs. The question is, are the costs associated with the public improvement reasonable and consistent with the type of development proposed and the demand for services created by the development? Applicant presented the variance request to the Planning and Zoning Commission along with two other variances and a Plat Vacation for the project. The Planning and Zoning Commission approved the Plat Vacation (6-0). RECOMMENDATION Planning and Zoning Commission recommends approval to the City Council regarding an exaction variance of Section 35.20.3.B of the Denton Development Code concerning sidewalks (6-0). ATTACHMENTS 1. Location Maps 2. Applicant Letter 3. Planning and Zoning Commission Minutes Respectfully submitted: f '� Kelly Carpenter, AICP Planning and Development Director Prepared by: David Speicher Development Review Administrator 2 ATTACHMENT I Location Maps 3 ATTACHMENT 2 Applicant Letter WOOK W;Spru September 7, 2005 Wood Street sidewalk variance(exaction variance)_.- The request is to reduce the width of new sidewalk along Wood Street from 8'(required)to 5'. The 8'width is a function of the road classification. Sidewalks along collectors are 8'wide because they are intended to be shared by both pedestrians and bicyclists. The classification of Wood Street as a collector, simply because the two corner lots are required to take access to the street fails to consider how the street actually functions. Simply stated, it functions as a local residential street. Currently, there are no sidewalks on the east side of Wood Street between McKinney and Davis, with the exception of the recently constructed 5' wide section mentioned above. If a 5' wide section is sufficient for a city project, it should also be sufficient for a private developer. In summary, I realize that it appears that were requesting special consideration for this site, but the Development Code is not setup for infill development. Each site must be analyzed on its own merits and the impact the existing regulations have on the potential development of the site. Until the code is revised, some common sense needs to prevail if quality infill development is to take place. Thank you in advance for your time and efforts. If you have any questions please do not hesitate to contact me. Larry eichhart, ASLA, AJCP Spring Brook Planning Group 4 ATTACHMENT 3 CondenseItrM Page 85 Page 87 1 COMMISSIONER STRANGE: we'll now move onto 1 Staff recommendation is approval to the request based on 2 Item E,the rezoning of approximately 0.17 acres of land, 2 the following findings: The proposed zoning is necessary 3 a portion of Lot 16R,Block 1,College View Addition from 3 for reasonable use of the property,the proposed zoning 4 a Neighbhorhood Residential NR-4 zoning district to a 4 and the use is compatible with the surrounding 5 Neighbhorhood Residential Mixed Use zoning district. Ms. 5 neighborhood. The proposed zoning change is compatible 6 Chewle. 6 with the City of Denton plan and Denton Development Code. 7 MS.CHEWLE: Good evening,Commissioners. 7 If you have any questions,I'll take them now. 8 The applicant for this project is Springbrook Planning 8 COMMISSIONER STRANGE: Mr.Roy. 9 Group,Grapevine,Texas. The applicant is requesting to 9 COMMISSIONER ROY: You indicate there are 10 rezone the northern portion of Lot--of Lot 16R of the 10 two properties within the 200 foot limit,do you have an 11 College View Addition which is approximately 0.17 acres 11 approximate percentage that you can share with us? 12 from a Neighborhood Residential 4 zoning district to a 12 MS,CHEWLE: Yes,it's .95. 13 Neighborhood Residential Mixed Use zoning district. The 13 COMMISSIONER ROY: .95? 14 applicant wishes to build a laundry on the subject 14 MS.CHEWLE: Right. 15 property. 15 COMMISSIONER ROY: Thank you. 16 Public notification information was 16 COMMISSIONER STRANGE: Any other questions 17 provided in your backup. As of this writing staff has 17 of staff? 18 received two responses in opposition to the request within l8 MS.CHEWLE: or maybe 9.5. 19 the 200 feet subject--of the subject property. 19 MR.REICHHART: 9.5. 20 The subject property is platted but 20 MS.CHEWLE: It doesn't look like.95. 21 currently vacant, A plat vacation is on our Agenda today. 21 COMMISSIONER STRANGE: All right. Okay.We 22 If the plat vacation is approved an amending or a replat 22 will--no other questions of staff,we will open the 23 shall be required in the future. The north and the south 23 public hearing. Is the applicant here and do they wish to 24 uses --the north and the south uses are Neighborhood 24 speak? 25 Residential NR-4 which consists of single family houses. 25 MR,REICHHART: Yes,I am here. I do have Page 86 Page 88 1 The properties to the east and the west are 1 a presentation but I don't know how--any more 2 zoned as Neighborhood Residential NR-4 and NRMU,which has 2 information you would get--I'm sorry. My name is Larry 3 single family and commercial uses. This is--this is the 3 Reichhart,Springbrook Planning Group,Grapevine,Texas 4 northern--this is one--one lot, 16R,but this portion 4 76051. We are looking to rezone the northern--what was 5 of the lot is zoned NR-4 and the--and once it's rezoned 5 at one time the northern 50 foot of this property. That 6 to NRMV,this is how--what it's going to look like. 6 constitutes of the lot that we're looking at right now,a 7 The proposed use is compatible with the 7 little less than 50 percent of the total lot. 8 existing neighborhood and the intent of the Development 8 I found it interesting that the Northstar 9 Code. Access to the subject site is from--excuse me, 9 bank folks said how difficult it was to develop,you know 10 from McKinney and Wood Street. McKinney is classified as 10 a lot that was a little under an acre. Try to do one 11 a primary major arterial and Wood Street is classified as 11 that's about a third of an acre, It is extremely 12 a local street. 12 difficult as you'll see in our other applications. So we 13 Public utilities are available to serve the 13 are respectfully requesting that the northern 50 foot be 14 site. The comparison--the comparison between the 14 rezoned to NRMU, we do think it is compatible. It is 15 permitted NR-4 and NRMU zoning districts are provided in 15 necessary for any development to take place on this 16 your backups. Laundry facility is an allowed use in an 16 property. And I'd be happy to answer any questions that 17 NRMO zoning district. In the--NRMt7 zoning districts 17 you have. 18 provide some commercial uses but mostly with limitations. 18 COMMISSIONER STRANGE: Any questions of the 19 The subject property has two zoning 19 applicant? Mr.Roy. 20 district classifications,NR-4 and NRMV. The NRMU 20 COMMISSIONER ROY: There was a basic 21 district only allows single family uses whereas NRMU 21 question that we brought up with staff earlier about 22 zoning district does not allow any single family use. 22 acting on this particular issue. I noticed that we've got 23 The portion of the property zoned NRMU 23 several other issues to discuss on this property. 24 District does not have a reasonable use of the land 24 MR.REICHHART: Regardless of those other 25 without the rezoning of the subject property to the north. 25 issues,we would like to get this property rezoned. I PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 85 - Page 88 CondenseltTM Page 89 Page 91 1 mean,for anything to be developed on this property,at-- 1 2 this rear portion needs to be rezoned regardless of what 2 3 happens with the other cases. 3 4 COMMISSIONER ROY: Thank you. 4 5 COMMISSIONER STRANGE: Any other questions 5 6 of the applicant? Thank you,Mr.Reichhart. Is there 6 7 anyone else here who wishes to speak in favor of this 7 8 item? Is there anyone who wishes to speak in opposition 8 9 to this item? Seeing none,we will close the public 9 10 hearing. Do we have a motion? 10 11 COMMISSIONER HOLT: so moved--move 11 12 approval. 12 13 COMMISSIONER sTRANGE: we have a motion 13 14 from Mrs.Holt. Do we have a second? 14 15 COMMISSIONER THIBODEAUX: Second. 15 16 COMMISSIONER STRANGE: Second by Dr. 16 17 Thibodeaux. Any discussion? Please,vote. Motion passes 17 18 6-0. 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 Page 90 Page 92 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 89 - Page 92 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT V05-0023 (Spring Brook Planning Group) Consider a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along McKinney Street. The approximately 035 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Spring Brook Planning Group applied for a variance of Section 35.20.2.L.2 of the Denton Development Code and the Transportation Criteria Manual concerning perimeter street dedication along Primary Arterial. The applicant is requesting a variance to reduce the ROW dedication along McKinney Street from 34.12 feet to 22.86 feet. The subject site is approximately 035 acres and is generally located at the northeast , ; F ` corner of McKinney Street and Wood Street f intersection. The applicant wishes to build a t 1 Laundry on the subject property. The ' "Y applicant has also requested for a plat ) , vacation, if the plat vacation is approved it will revert to the plat approved in 1925. The Development Code requires new f perimeter streets as follows. "If an arterial ; � � •� or collector street is proposed by the ° mobility plan on, near or within the ornrgBBC boundary of the development or the development creates the need for a new Plat approved in 1925 perimeter street, the development shall provide the portion of the perimeter street including right of way dedication for which it reasonably creates the need, but in no case shall that portion of the street provided be less than a pavement width of twenty-five (25) feet plus required bicycle lane in the case of an arterial. Minimum right of way dedication for new perimeter streets shall be sufficient to provide the required amount of pavement, the required parkway width for the street classification as shown in the Transportation Criteria Manual, and an additional five 1 feet to provide for any sloping needed between the pavement and the property line of the development. All perimeter streets shall be provided with curb and gutter along the side abutting the development. If the perimeter street is ultimately proposed to serve as a divided arterial street and the development is required to install half of the arterial street, then curb and gutter shall be provided on both sides of the perimeter street so as to provide the curb for the future median of the arterial street." The Criteria Manual requires the following Geometric Standard: 135' PEW I10' BE T❑ 3C C/L C/L 10' 30' MEDIAN MIN SIDEWALK SIDEWALK 40, (LANE WIDTHS) (BACK [IF CURB) Figure I-1-A-23, Primary Arterial Section The Commission may recommend that this exaction variance be approved by the City Council if the following criteria is met: Sec. 34-6.(b) Criteria for variances from development exactions. Where the commission finds that the imposition of any development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute confiscation of the tract to be platted, it may recommend approval of variances to waive such exaction's, so as to prevent such excess, to the City Council. Waiver of development exactions shall be approved by the City Council. The price the applicant(s) paid for the parcel, or the cost of the proposed building improvements is not a factor in determining reasonable costs. The question is, are the costs associated with the public improvement reasonable and consistent with the type of development proposed and the demand for services created by the development? Applicant presented the variance request to the Planning and Zoning Commission along with two other variances and a Plat Vacation for the project. The Planning and Zoning Commission approved the Plat Vacation (6-0). 2 RECOMMENDATION Planning and Zoning Commission recommends approval to the City Council regarding a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along McKinney Street. (6-0). ATTACHMENTS 1. Location Maps 2. Amending Final Plat/Exhibit C 3. Applicant Letter/Exhibit D 4. Planning and Zoning Commission Minutes Respectfully submitted: Kelly Carpenter, AICP Planning and Development Director Prepared by: David Speicher Development Review Administrator 3 ATTACHMENT I Location Maps 3 ATTACHMENT 2 Amending Final Plat EXHIBIT C 1/2'IRF 1/2" IRF IRF/CAP 111F/CAP Lot 17, int 4 1_ . 'IRS r S 39'35'25"E 142:96' J /CAP S t�C1'C35 i� W Lb 50.00 F>� Lk -' to Jockey Dde Q.4dol V,44-e 864,P.qe-977 ' a'P.U,E._. Lot 3 i t F/ ��, TflTA 11,493 ACRE sLO:I< � North Wood Street _. z8.0' Aspt,clt (5,0' ROV ' 35. �; LOT. 16R�,: BLOCi{1 �. 1 r%c�� :-t 0) Lot 3 PUE. 20 u. 0 � y �.1 RF y - _Z177— 5 2844 2&2° � a Al, �, "E tL' ; =K r GAT' gat L10t 1 ` R.C'1.4Y. 8'P'.7AE� ..;; ' ..... ;e 24SZ3' DEDICA71C11t _ (, t. ; il.145-Acre N 89`15'S5'' 143.0 3 IRS/CAP McKirine Street ".0 Asp 7¢tt.(105 RO Viv) 5 ATTACHMENT 3 Applicant Letter 1 ►ri g 6k P group September 7, 2005 McKinney Street ROW (exaction variance § 35.20.2(A.6.)1: Per IDRC comments dated 10102/03, (McKinney is classified as a Primary Arterial requiring a minimum half- section dedication of 67.5 ft. from the centerline of McKinney (a 135" total ROW). TNs requirement results in a 34.12' dedication from the subject property (Exlhib'it C), or approximately 23%of the entire site. This section of IMcKinney is controlled by the City of (Denton. As such, the ultrmate design, alignment and configuration of the ultimate road lis also controlled by the City. A typical road section for a IPrirnary Arterial (Figure I- 1-A-23, IPr'irmary Arterial Section -Transportation Design Criteria (Manual) lincludes two 40"wide read sections, a 24' wide median, two 10"wide planting strips and two 5' wide sidewallks for a total of 134'within the requlired 135" ROW. (Please note that the criteria manual identifies a 30'wide median, but according to a conversation with Bud Vokoun, that measurement is incorrect) If that section is centered over the existing centerlline of McKinney the impact along McKinney will be devastating to the majority of residents and businesses along IMcKinney as lilllustrated below. Fy y & i 6 It is unfikly that this configuration will occurs due to the financial costs of aquidng that much property. In all likelihood two things will probably happen. (First, the road section will be modified to reduce the limpact to properties. The median would probably be reduced from 24'to 14" or possibly 12', and the two 10' pllanting areas would be reduce to Seach or be eliminated. That would reduce the (ROW by at least 20'. Secondly, the road would probably be off-set, similar to what's currently being proposed on IMayhill. Instead of following the existing centerline and impacting both sides of the street, an analysis of the corridor would be done to determine what side of the street would be better (and less expensive) to utilize. In all likelihood, the south side of IMclKlinney (at least in this area) would probably be targeted because it's mostly dingle-famlilly houses which would cost less to acquire. We are requesting that the 34.12' ROW dedication be reduced to 22.86' (a reduction of 11.26'). This amount was calculated from the proposed site Ipllan (Exhibit ID). The proposed building (3,360 sq. ft.) is the smallest building that my client has ever considered for a laundry facilllity and funcfionallly cannot Ibe reduced. The building cannot be shifted to the north because the 20' setback(along the north property line) lis required per code. We considered moving the building south (towards McKinney) and provide parking behind the building. However, that concept was not pursued because of potential safety tissues. Safety is a major concern to any business owner, but especially for a laundry facillity. Glientele typically have cash on them for the coin operated facilities, and are at a disadvantage, or venerable, when loading and unloading vehicles (carrying an arm full of clothes). Therefore, it lis extremely limportant that all areas of the site be visible from the adjacent streets and not tucked away from view. Fina[ly, based on other laundry operations my client owns and operates, the amount of parking cannot be reduced. Putting all those factors together results tin a 11.26' intrusion into the recently dedicated (ROW. �By reducing the dedication by 11.26', the impact to the site is reduced to 15%, which lis still a sizaNe impact, but lit does provide the required 20' setback adjacent to a singlle- family residential use (the property to the north). If an 11.26' reduction tin ROW is granted, 3 potential scenarios exist if and when �McKinney is reconstructed. They are: 1. If the road is built in its current a[igniment(following the current centerline), addition �ROW would have to be acquired only if the current 134' section lis utflized. If the me6an and planting areas are reduced by 21' to 22', enough ROW would have been acquired to facilitate the improvements. 2. The alignment is shifted to the south -the city would have additional (ROW along the frontage of this property. 3. The alignment lis shifted to the north —additional ROW would have to Ibe acquired from the subject property. However, additional ROW would be required with the existing 34'of ROW that was dedicated. Either way, if the alignment is shifted to the north, the city would probably end up condemning the entire property, regardless of how much ROW is dedicated. In summary, a 11.26' reduction, lessens the limpact to the site and has little to no effect on the future redevelopment of(McKinney into a 6 lane primary arterial. 7 In summary, I realize that it appears that were requesting special consideration for this site, but the(Development Code is not set up for infilll development. Each site must be analyzed on its own merits and the impact the existing regulations have on the potential development of the site. Until the code is revised, some common sense needs to prevail if quality Iinfill development is to take place. Thank you in advance for your time and efforts. If you have any questions please do not hesitate to contact me. /472 arry Re. hart, ASl_A, A___. Spring Brook Planning Group s Exhibit Lot ,•1 L,-A. 4, 15501 to To c . °'Into ._ 4) Y IUB_La4E ` m 9!�1605Q F7 Aa rL .3st a� E e E rf j s` �3 # F s s p rr E R raE a iFl - 44'Asphalt); �IS= PILAN , a lil �,p 2" D" j...d pw .304 WOOD STRM =7ml Donwml,Tema ATTACHMENT 4 tM CondenseIt Page 85 Page 87 1 COMMISSIONER STRANGE: we'll now move onto 1 Staff recommendation is approval to the request based on 2 Item E,the rezoning of approximately 0.17 acres of land, 2 the following findings: The proposed zoning is necessary 3 a portion of Lot 16R,Block 1,College View Addition from 3 for reasonable use of the property,the proposed zoning 4 a Neighbhorhood Residential NR-4 zoning district to a 4 and the use is compatible with the surrounding 5 Neighbhorhood Residential Mixed Use zoning district. Ms. 5 neighborhood. The proposed zoning change is compatible 6 Chewle. 6 with the City of Denton plan and Denton Development Code. 7 MS.CHEWLE: Good evening,Commissioners. 7 If you have any questions,I'll take them now. 8 The applicant for this project is Springbrook Planning 8 COMMISSIONER STRANGE: Mr.Roy. 9 Group,Grapevine,Texas. The applicant is requesting to 9 COMMISSIONER ROY: You indicate there are 10 rezone the northern portion of Lot--of Lot 16R of the 10 two properties within the 200 foot limit,do you have an 11 College View Addition which is approximately 0.17 acres 11 approximate percentage that you can share with us? 12 from a Neighborhood Residential 4 zoning district to a 12 MS,CHEWLE: Yes,it's .95. 13 Neighborhood Residential Mixed Use zoning district. The 13 COMMISSIONER ROY: .95? 14 applicant wishes to build a laundry on the subject 14 MS.CHEWLE: Right. 15 property. 15 COMMISSIONER ROY: Thank you. 16 Public notification information was 16 COMMISSIONER STRANGE: Any other questions 17 provided in your backup. As of this writing staff has 17 of staff? 18 received two responses in opposition to the request within l8 MS.CHEWLE: or maybe 9.5. 19 the 200 feet subject--of the subject property. 19 MR.REICHHART: 9.5. 20 The subject property is platted but 20 MS.CHEWLE: It doesn't look like.95. 21 currently vacant, A plat vacation is on our Agenda today. 21 COMMISSIONER STRANGE: All right. Okay.We 22 If the plat vacation is approved an amending or a replat 22 will--no other questions of staff,we will open the 23 shall be required in the future. The north and the south 23 public hearing. Is the applicant here and do they wish to 24 uses --the north and the south uses are Neighborhood 24 speak? 25 Residential NR-4 which consists of single family houses. 25 MR,REICHHART: Yes,I am here. I do have Page 86 Page 88 1 The properties to the east and the west are 1 a presentation but I don't know how--any more 2 zoned as Neighborhood Residential NR-4 and NRMU,which has 2 information you would get--I'm sorry. My name is Larry 3 single family and commercial uses. This is--this is the 3 Reichhart,Springbrook Planning Group,Grapevine,Texas 4 northern--this is one--one lot, 16R,but this portion 4 76051. We are looking to rezone the northern--what was 5 of the lot is zoned NR-4 and the--and once it's rezoned 5 at one time the northern 50 foot of this property. That 6 to NRMV,this is how--what it's going to look like. 6 constitutes of the lot that we're looking at right now,a 7 The proposed use is compatible with the 7 little less than 50 percent of the total lot. 8 existing neighborhood and the intent of the Development 8 I found it interesting that the Northstar 9 Code. Access to the subject site is from--excuse me, 9 bank folks said how difficult it was to develop,you know 10 from McKinney and Wood Street. McKinney is classified as 10 a lot that was a little under an acre. Try to do one 11 a primary major arterial and Wood Street is classified as 11 that's about a third of an acre, It is extremely 12 a local street. 12 difficult as you'll see in our other applications. So we 13 Public utilities are available to serve the 13 are respectfully requesting that the northern 50 foot be 14 site. The comparison--the comparison between the 14 rezoned to NRMU, we do think it is compatible. It is 15 permitted NR-4 and NRMU zoning districts are provided in 15 necessary for any development to take place on this 16 your backups. Laundry facility is an allowed use in an 16 property. And I'd be happy to answer any questions that 17 NRMO zoning district. In the--NRMt7 zoning districts 17 you have. 18 provide some commercial uses but mostly with limitations. 18 COMMISSIONER STRANGE: Any questions of the 19 The subject property has two zoning 19 applicant? Mr.Roy. 20 district classifications,NR-4 and NRMV. The NRMU 20 COMMISSIONER ROY: There was a basic 21 district only allows single family uses whereas NRMU 21 question that we brought up with staff earlier about 22 zoning district does not allow any single family use. 22 acting on this particular issue. I noticed that we've got 23 The portion of the property zoned NRMU 23 several other issues to discuss on this property. 24 District does not have a reasonable use of the land 24 MR.REICHHART: Regardless of those other 25 without the rezoning of the subject property to the north. 25 issues,we would like to get this property rezoned. I PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 85 - Page 88 CondenseltTM Page 89 Page 91 1 mean,for anything to be developed on this property,at-- 1 2 this rear portion needs to be rezoned regardless of what 2 3 happens with the other cases. 3 4 COMMISSIONER ROY: Thank you. 4 5 COMMISSIONER STRANGE: Any other questions 5 6 of the applicant? Thank you,Mr.Reichhart. Is there 6 7 anyone else here who wishes to speak in favor of this 7 8 item? Is there anyone who wishes to speak in opposition 8 9 to this item? Seeing none,we will close the public 9 10 hearing. Do we have a motion? 10 11 COMMISSIONER HOLT: so moved--move 11 12 approval. 12 13 COMMISSIONER sTRANGE: we have a motion 13 14 from Mrs.Holt. Do we have a second? 14 15 COMMISSIONER THIBODEAUX: Second. 15 16 COMMISSIONER STRANGE: Second by Dr. 16 17 Thibodeaux. Any discussion? Please,vote. Motion passes 17 18 6-0. 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 Page 90 Page 92 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 89 - Page 92 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT V05-0024 (Spring Brook Planning Group) Consider a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along Wood Street. The approximately 035 acres of property is generally located at the northeast corner of McKinney Street and Wood Street intersection. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Spring Brook Planning Group applied for a variance of Section 35.20.2.L.2 of the Denton Development Code and the Transportation Criteria Manual concerning perimeter street dedication along Main Street Mixed Use Collector. The applicant is requesting a variance to reduce the ROW dedication along Wood 11.49 feet to 8.9 feet. The subject site is approximately 035 acres and is generally located at the northeast corner of McKinney Street and Wood Street intersection. The applicant wishes to build a Laundry on the subject property. The applicant has also requested for a plat vacation, if the plat vacation is approved it will revert to the plat approved in 1925. The Development Code requires new y r perimeter streets as follows. "If an arterial or collector street is proposed by the mobility plan on, near or within the t . boundary of the development or the development creates the need for a new perimeter street, the development shall ' provide the portion of the perimeter street ��� including right of way dedication for which it reasonably creates the need, but in no case ' 1 , shall that portion of the street provided be less than a pavement width of twenty-five � s ° (25) feet plus required bicycle lane in the E, o' $ . 'R case of an arterial. Minimum right of way dedication for new perimeter streets shall be Plat approved in 1925 sufficient to provide the required amount of pavement, the required parkway width for the street classification as shown in the Transportation Criteria Manual, and an additional five feet to provide for any sloping needed between the pavement and the property line of the development. All perimeter streets shall be provided with curb and gutter along the side abutting the development. If the perimeter street is ultimately proposed to serve as a divided arterial street and the development is required to install half of the arterial street, then curb and gutter shall be provided on both sides of the perimeter street so as to provide the curb for the future median of the arterial street." 1 The Criteria Manual requires the following Geometric Standard: B' SIDEWALK BACK OF CURB 6' MIN. PARKWAY 8' PARKING 8' PARKING BACK ❑F CURB 6' MIN. PARKWAY 8' SIDEWALK ROW Figure 1-1-A-16, Main Street Mixed Use Collector Plan Views The Commission may recommend that this exaction variance be approved by the City Council if the following criteria is met: Sec. 34-6.(b) Criteria for variances from development exactions. Where the commission finds that the imposition of any development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute confiscation of the tract to be platted, it may recommend approval of variances to waive such exaction's, so as to prevent such excess, to the City Council. Waiver of development exactions shall be approved by the City Council. The price the applicant(s) paid for the parcel, or the cost of the proposed building improvements is not a factor in determining reasonable costs. The question is, are the costs associated with the public improvement reasonable and consistent with the type of development proposed and the demand for services created by the development? RECOMMENDATION Planning and Zoning Commission recommends approval to the City Council regarding a variance of Section 35.20.2.L.2 of the Denton Development Code concerning perimeter streets along Wood Street(6-0). ATTACHMENTS 1. Location Maps 2. Amending Final Plat/Exhibit C 3. Applicant Letter/Exhibit D 4. Planning and Zoning Commission Minutes Respectfully submitted: Kelly Carpenter, AICP Planning and Development Director Prepared by: David Speicher Development Review Administrator 2 ATTACHMENT I Location Maps 3 ATTACHMENT 2 Amending Final Plat EXHIBIT C 1/2'IRF 1/2" IRF IRF/CAP 111F/CAP Lot 17, int 4 1_ . 'IRS r S 39'35'25"E 142:96' J /CAP S t�C1'C35 i� W Lb 50.00 F>� Lk -' to Jockey Dde Q.4dol V,44-e 864,P.qe-977 ' a'P.U,E._. Lot 3 i t F/ ��, TflTA 11,493 ACRE sLO:I< � North Wood Street _. z8.0' Aspt,clt (5,0' ROV ' 35. �; LOT. 16R�,: BLOCi{1 �. 1 r%c�� :-t 0) Lot 3 PUE. 20 u. 0 � y �.1 RF y - _Z177— 5 2844 2&2° � a Al, �, "E tL' ; =K r GAT' gat L10t 1 ` R.C'1.4Y. 8'P'.7AE� ..;; ' ..... e 24SZ3' DEDICA71C11t _ (, t. ; il.145-Acre N 89`15'S5'' 143.0 3 IRS/CAP McKirine Street ".0 Asp 7¢tt.(105 RO Viv) 5 ATTACHMENT 3 Applicant Letter ok .0.-I"g grgup September 7, 2005 Woad Street ROW (exaction variance-§ 35.20.2(A.4.)): Per DRC comments dated 10/02/03,Wood Street meets the standards for an existing collector street and requires a minimum half-section dedication of 35'from the centerline of Wood (a 70'total (ROW). In combination with the (McKinney Street ROW requirements, a total of 30.3% of the site would be dedicated as ROW. Although Woad Street does meet the majority of standards for a collector street it truly does not function as a coillector. (Besides the two commercial properties on the corners, the remaining properties to the north are single- family residences. Additionally, the application of the definition does not take infilll development into consideration. This is the same problem that the Ibank on the corners of Carroll, Westgate, Anne & Sunset had as will any commercial development on a corner near an existing neighborhood. When the site is developed, code requires that access be from the lesser classified read,which then triggers that road into becoming a collector, by definition (Catch 22?). It is unlikely that Wood Street will ever be redeveioped by the city to the standards of a collector. Wood Street is currently a 50' wide ROW and as mentioned above, mostly single-family. The main reason I believe that Wood Street will not be redesigned is again, the cast (bath financially and politically)of acquiring the additional ROW needed (approximately 10'on both sides of the street). Additionally, if the city had any intentions of redeveiopling Wood Street as a collector, the sidewalk return that was recently built along Wood St. (part of the McKinney Street sidewalk project) would have been 8'wide (as required per cede) not the 5" width that was built. Although no ROW dedication wound allow the most flexibility for designing the site, reducing the required 11.49' to 8.9' (see (Exhibit ID) wound allow for more efficient parking on site and provide roam for a decorative screen fence between the parking and the ROW. In summary, I realize that it appears that were requesting special consideration for this site, but the(Development Cade is not set up for infilll development. Each site must be analyzed on its own merits and the limpact the existing regulations have on the potential development of the site. Until the cede is revised, some common sense needs to prevail if quaVlity linfill development is to take place. Thank you in advance for your time and efforts. If you have any questions please do not hesitate to contact me. arry Re' hart, ASIA, A Spring Brook Pianning Group 6 Exhibit Lot I ,•1 I 'to E 3 3 A :, J TO - - 5a i=T LL E -• ' .rah a VvIg a �. M o CL for d ee�� ,w® m �4 4'As pku Il SrM®� I sip' WOOD STRM TX R 7 ATTACHMENT 4 CondenseIt"m Page 85 Page 87 1 COMMISSIONER STRANGE: we'll now move onto 1 Staff recommendation is approval to the request based on 2 Item E,the rezoning of approximately 0.17 acres of land, 2 the following findings: The proposed zoning is necessary 3 a portion of Lot 16R,Block 1,College View Addition from 3 for reasonable use of the property,the proposed zoning 4 a Neighbhorhood Residential NR-4 zoning district to a 4 and the use is compatible with the surrounding 5 Neighbhorhood Residential Mixed Use zoning district. Ms. 5 neighborhood. The proposed zoning change is compatible 6 Chewle. 6 with the City of Denton plan and Denton Development Code. 7 MS.CHEWLE: Good evening,Commissioners. 7 If you have any questions,I'll take them now. 8 The applicant for this project is Springbrook Planning 8 COMMISSIONER STRANGE: Mr.Roy. 9 Group,Grapevine,Texas. The applicant is requesting to 9 COMMISSIONER ROY: You indicate there are 10 rezone the northern portion of Lot--of Lot 16R of the 10 two properties within the 200 foot limit,do you have an 1 I College View Addition which is approximately 0.17 acres 11 approximate percentage that you can share with us? 12 from a Neighborhood Residential 4 zoning district to a 12 MS.CHEWLE: Yes,it's .95. 13 Neighborhood Residential Mixed Use zoning district, The 13 COMMISSIONER ROY: .95? 14 applicant wishes to build a laundry on the subject 14 MS.CHEWLE: Right. 15 property. 15 COMMISSIONER ROY: Thank you. 16 Public notification information was 16 COMMISSIONER STRANGE: Any other questions 17 provided in your backup. As of this writing staff has 17 of staff? 18 received two responses in opposition to the request within 18 Ms.cHEwLE: or maybe 9.5. 19 the 200 feet subject--of the subject property. 19 MR.REICHHART: 9.5. 20 The subject property is platted but 20 MS.CHEWLE: It doesn't look like.95. 21 currently vacant. A plat vacation is on our Agenda today. 21 COMMISSIONER STRANGE: All right. Okay.We 22 If the plat vacation is approved an amending or a replat 22 will--no other questions of staff,we will open the 23 shall be required in the future. The north and the south 23 public hearing, Is the applicant here and do they wish to 24 uses --the north and the south uses are Neighborhood 24 speak? 25 Residential NR-4 which consists of single family houses. 25 MR,REICHHART: Yes,I am here. I do have Page 86 Page 88 1 The properties to the east and the West are 1 a presentation but I don't know how--any more 2 zoned as Neighborhood Residential NR-4 and NRMU,which has 2 information you would get--I'm sorry. My name is Larry 3 single family and commercial uses. This is--this is the 3 Reichhart,Springbrook Planning Group,Grapevine,Texas 4 northern--this is one one lot, 16R,but this portion 4 76051. We are looking to rezone the northern--what was 5 of the lot is zoned NR-4 and the--and once it's rezoned 5 at one time the northern 50 foot of this property. That 6 to NRMLI,this is how--what it's going to look like. 6 constitutes of the lot that we're looking at right now,a 7 The proposed use is compatible with the 7 little less than 50 percent of the total lot. 8 existing neighborhood and the intent of the Development 8 I found it interesting that the Northstar 9 Code. Access to the subject site is from--excuse me, 9 bank folks said how difficult it was to develop,you know 10 from McKinney and Wood Street. McKinney is classified as 10 a lot that was a little under an acre. Try to do one 11 a primary major arterial and Wood Street is classified as 11 that's about a third of an acre. It is extremely 12 a local street. 12 difficult as you'll see in our other applications. So we 13 Public utilities are available to serve the 13 are respectfully requesting that the northern 50 foot be 14 site. The comparison--the comparison between the 14 rezoned to NRMU. we do think it is compatible. It is 15 permitted NR-4 and NRMU zoning districts are provided in 15 necessary for any development to take place on this 16 your backups. Laundry facility is an allowed use in an 16 property. And I'd be happy to answer any questions that 17 NRMU zoning district. In the--NRMu zoning districts 17 you have. 18 provide some commercial uses but mostly with limitations. 18 COMMISSIONER STRANGE: Any questions of the 19 The subject property has two zoning 19 applicant? Mr.Roy. 20 district classifications,NR-4 and NRMu. The NRMU 20 COMMISSIONER ROY: There was a basic 21 district only allows single family uses whereas NRMU 21 question that we brought up with staff earlier about 22 zoning district does not allow any single family use. 22 acting on this particular issue. I noticed that we've got 23 The portion of the property zoned NRMU 23 several other issues to discuss on this property. 24 District does not have a reasonable use of the land 24 MR,REICHHART: Regardless of those other 25 without the rezoning of the subject property to the north. 25 issues,we would like to get this property rezoned. I PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 85 - Page 88 CondenseItTM Page 89 Page 91 1 mean,for anything to be developed on this property,at-- 1 2 this rear portion needs to be rezoned regardless of what 2 3 happens with the other cases. 3 4 COMMISSIONER ROY: Thank you. 4 5 COMMISSIONER STRANGE: Any other questions 5 6 of the applicant? Thank you,Mr.Reichhart. Is there 6 7 anyone else here who wishes to speak in favor of this 7 8 item? Is there anyone who wishes to speak in opposition 8 9 to this item? Seeing none,we will close the public 9 10 hearing. Do we have a motion? 10 11 COMMISSIONER HOLT: So moved--move 11 12 approval. 12 13 coMMISSIoNER STRANGE: we have a motion 13 14 from Mrs.Holt. Do we have a second? 14 15 COMMISSIONER THIBODEAUX: second. 15 16 COMMISSIONER STRANGE: Second by Dr. 16 17 Thibodeaux. Any discussion? Please,vote. Motion passes 17 18 6-0. 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 Page 90 Page 92 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 !8 19 19 20 20 21 21 22 22 23 23 24 24 25 25 PLANNING AND ZONING MINUTES OCTOBER 12, 2005 Page 89 - Page 92 AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Fiscal Operations ACM: Jon Fortune SUBJECT Consider approval of a resolution casting votes for membership to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. BACKGROUND On September 7, 2005, the Denton Central Appraisal District (DCAD) requested nominations to their Board of Directors, as the term for all the current members expires December 31, 2005. The current DCAD Board Members include Charles Stafford (Denton), Rick Woolfolk (Denton), Lee Baker (Flower Mound), Steve Mossman (Lewisville), and Ben Harmon (Lewisville). On October 7, 2003, the City nominated Rick Woolfolk and Charles Stafford. Mr. Stafford and Mr. Woolfolk were elected. On July 16, 2005, Steve Mossman was made a voting member of the Board, due to the resignation of Richard Smith. 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 five-member Board of Directors. This year, the City has 163 votes, and DISD has 692 votes. On October 4, 2005, Council nominated Rick Woolfolk and Charles Stafford to continue to serve on the DCAD Board of Directors. They were also nominated by DISD. On October 21, 2005, DCAD sent a memo (attached) to the City listing the candidates nominated by the taxing jurisdictions. In a concerted effort, DISD has requested that the City cast all of their votes for Rick Woolfolk. DISD will strategically cast their votes at a later date in an effort to get both candidates elected. Votes must be reported to DCAD by December 15, 2005. 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). Agenda Information Sheet November 15, 2005 Page 2 Prior to Oct. 30 - DCAD compiles comprehensive list of nominees and forwards list to each taxing unit in ballot forms. 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. 31st - 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 November 15, 2005 Page 3 EXHIBITS Memo from DCAD Resolution Respectfully submitted: Diana G. Ortiz Chief Financial Officer DENTON CENTRAL APPRAiEAL DiSTRICT 3911 Morse Street, P.O.Box 2816 Denton,TX 76202-2816 www.dentonead.com o ��► 5 MEMO TO: axing Jurisdictions FROM: Joe Rogers DATE: October 21,2005 SUBJECT: -Mndidates to oard'of "" Centrai.A ppraaDisn6t--_. Candidates to the Denton Central Appraisal District Board of Directors are listed below.The list is in alphabetical order by last name. Each voting unit must cast its vote by written resolution and submit it to the Chief Appraiser by December 15th. The unit may cast all Its`votes for one candidate or may distribute the votes among any number of candidates. When a voting unit casts its votes, it must cast the votes for a' person that was nominated and is named on the ballot. There is no provision for write-in candidates. The Tax Code does not permit the Chief Appraiser to count votes cast for someone not listed on the official ballot. The five nominees receiving the most votes will become the Board of Directors. The candidates nominated by the taxing jurisdictions are: Lee A. Baker Lewisville ISD, City of LewisvHle 2. . Pat Carr Town of Trophy Club 3. Pearl Ford Town of Trophy Club 4. Shirley Heisler City of Krum 5. Doug Killough Lewisville ISD,City of Lewisville 6. Jeff Low Aubrey ISD 7. Steve Mossman Lewisville ISD, City of Lewisville,Denton County 8 Robert Redder Town of Trophy Club 9. afford Denton ISD, Cltybf Denton 10. Rick Wooifolk Denton ISD, City of 6enlon Since some of you may not be familiar with the process of selecting the Board, please do not hesitate to co ct Kethy Williams at(940)349-3974 for clarification and/or information. 1 Joe Roge Chief Appraiser Phone: 940-349-3800 Metro: 972-434-2602 Fax: 940-349-3801 DENTON CENTRAL,APPRAISAL DISTRICT 2005 DISTRIBUTION OF VOTES 2004 0/60F TOTAL NUMBER ICTIONS 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%' 32 505 DENTON ISD $111,690,985.68 13.8370/. 692 S07 KRUM ISD $8,110,622:80 1.005°lo'_ 50 S09 . LAKE DALLAS LSD $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% iO3 Sii NORTHWEST ISD $98,062,250.77 12.148°/0 607 IS12 PILOT POINT ISD $6,712,756.56 0.832°/0 42 S13 PONDER ISD $10,014,567:13 1..241'/0 62 X14 $AVER ISD w $9 7 b3 1.2196 61 SCHOOL DISTRICTS TOTALS $597,899,450.08 74.070% 3701 ` G01 DENTON COUNTY $91,696,81,7.12 11.360°/9 568 CITIES C26 CITY OF ARGYLE $1,024,7$4.97 0.127% 6 COl CITY OF AUBREY $4266,314.59 0.053% 3 C31 TOWN OF BARTONVILLE $269,016;14 0.033% 2 AN21 TOWN OF CLARK $69,964,13 0.0090/o 1 CO3 CITY OF THE COLONY $12,448,889.30 1.542% 77 C04 TOWN OFCORINTH $6,721,510.25 0.833% 42 C27 TOWN OF COPPER CANYON $202071,84 0.025°/0 1 C05 CITY OF DENTON $26,353,489.67 3.265% 163 C30 , CITY OF DOUBLE OAK $530,275.15 0,066°/0 3 67 CITY OF FLOWER MOUND $22,$85,144.91 2.835% 142 C22 TOWN OF HACKBERRY $64,911.67 0.008°/0 1 C19 TOWN OF HICKORY CREEK $824,349.40 .0.102% 5 C08 CITY OF HIGHLAND VILLAGE. $6,765,768.40 0.838% 42 C09 CITY OF JUSTIN $607,039.50 0.075% 4 C18 CITY OF KRUGERVILLE $147,145.08 0.018% ; CIO CITY OF KRUM -$470,312,14 0.058% 3 Cl l CITY OF LAKE DALLAS $1,683,$19.1$, 0.209'0 10 C2$ TOWN OF LAKEWOOD VILLAGE $105,23 0 013%, 1 CITY 41x LEWISVII I46 C13 C23 CITY OF MARSHALL CREEK $43,941.59 ' 0.005% 1 C33 CITY OF NORTHLAKE $224,144.30 0.028% 1 C24 CITY OF OAK POINT $1,024,267.71 0.127% 6 C14 CITY OF PILOT POINT $759,331.1$ 0494% 5 CIS CITY OF PONDER $208,.42 0,02604 1 C17 CITY OF ROANOKE $2,617,$51 .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 $2,517,96213 0.312% 16 CITIES TOTALS $11.7,614,354.46 14.570°/0 730 GRAND TOTALS $807,210,621.66 100.0000/0 5000 XATHYWt3HEET12005ALL0C.XLS SAOur Documents\Resolutions1051DCA,D Casting Votes.doc RESOLUTION NO. A RESOLUTION CASTING VOTES FOR MEMBERSHIP TO THE BOARD OF DIRECTORS OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, hereby casts all 163 votes for Rick Woolfolk for membership to the Board of Directors of the Denton Central Appraisal District for the County of Denton, Texas. SECTION 2. 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: November 15, 2005 DEPARTMENT: Fiscal Operations ACM: Jon Fortune ff SUBJECT Consider approval of a Resolution nominating members to the Appraisal Review Board of the Denton Central Appraisal District; and declaring an effective date. BACKGROUND The Appraisal Review Board (ARB) is a body specifically charged with the responsibility of reviewing protested appraisal records. They meet primarily between May and July and as needed thereafter. Members of the ARB serve two-year staggered terms. Approximately half the member's terms expire each year. Terms begin January 1. Nominations to this Board are provided by the taxing jurisdictions and appointed by the Denton Central Appraisal District (DCAD) Board of Directors by a majority vote. City Council may submit as many nominations as they desire. Attached is a brief summary of qualifications for appointment to the ARB and a questionnaire. Nominees must complete and return the questionnaire to the DCAD by November 15, 2005. The Board of Directors is scheduled to make their selection during their December meeting. A list of the current members is also attached. The five members whose terms will expire in December 2005 are as follows: Bill James (Corinth) Jack Weir(Denton) Howard Creamer(Little Elm) Willaim Sinclair(Shady Shores) Patrick Carr(Trophy Club) All five are eligible for reappointment and have expressed a desire to serve another term. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On November 16, 2004, Council nominated George Gibson and David Rowley as members to the Appraisal Review Board of the Denton Central Appraisal District. Agenda Information Sheet November 15, 2005 Page 2 FISCAL INFORMATION There is no fiscal impact to the City. EXHIBITS Appraisal Review Board Summary of Qualifications 2005 Appraisal Review Board Members List Resolution Respectfully submitted: Diana G. Ortiz Chief Financial Officer APPRAISAL REVIEW BOARD Qualifications To serve on the Appraisal Review Board (ARB), you must have lived in the appraisal district for at least two years before taking office. You don't need any special qualifications. The Comptroller's office will provide a course for training ARB members. All ARB members must complete the course to participate in ARB hearings. Persons Ineligible 1. Those who have served all or part of three previous terms on the ARB. 2. Current or former members of the board of directors, officers, or employees of the appraisal district. 3. Those who serve or have served as a member of the governing body or officer of a taxing unit for which the appraisal district appraises property, until the e anniversary of the date the person ceased to be a member or officer. (Our attorney has interpreted an officer to be a member of a Planning and Zoning Board, a member of a Zoning Board of Adjustments, an election official or any officer that has decision-making authority for any entity that the Appraisal District serves.) 4. Those who have ever appeared before the ARB for compensation or if a relative appears, or their work product is used before the ARB for compensation. 5. Employees of the Comptroller's Office or a taxing unit. 6. Those who contract with the appraisal district or with a taxing unit that participates in the appraisal district. Also, if the person or a business entity in which the person has a substantial interest contracts with the appraisal district or a taxing unit that participates in the appraisal district. 7. Those with Delinquent Property Taxes. Appointment The Board of Directors will appoint ARB members by a majority vote and record their decision in a resolution. Terms begin January 1. Members serve two-year staggered terms; approximately half the member's terms expire each year. ARB Compensation The ARB receives a $75.00 minimum for a half day and a maximum pay of$150.00 per day. ARB Meetings Beginning in January, the ARB will meet on the third Wednesday of each month. (Except in May, June and July) Meetings are held at the offices of Denton CAD. ARB reappraisal hearings will start on a daily basis, as needed, from late May until the appraisal roll is approved usually in late July. Meetings will normally be from 9:00 A.M. to 5:00 P.M. Currently the ARB meets one night a week in May, June, and July. Appraisal Review Board Questionnaire The Board of Directors of the Denton Central Appraisal District is considering you as a possible member of the Appraisal Review Board. The Board of Directors will choose members for a two- year term. The selection will be made at the next Board meeting. Would you please answer the following questions and return to the District as soon as possible. Name Address Address Phone Nominating Jurisdiction 1. Would you be willing to serve? (Beginning in January, the ARB will meet on the third Wednesday of each month. (Except in May, June, and July) ARB reappraisal hearings will start on a daily basis from late May until late July from 9:00 A.M.to 5:00 P.M. 2. Have you ever been an officer or employee of the appraisal district? 3. Have you ever served on the appraisal district's board of directors? 4. Have you ever been a member of the governing body or an officer of a taxing unit for which the appraisal district appraises property? If so, has it been the 4tn anniversary of the date you ceased to be a member or officer? 5. Have you ever appeared before the ARB for compensation? 6. How long have you resided in Denton County? 7. Occupation 8. Do you have any prior experiences serving on an appraisal review board or any board that has to do with property value? 9. Could you make a decision based on evidence rather than feelings for the taxpayer? 10. The property tax code requires that all property be valued at 100%of market value. Could you keep this in mind throughout the proceedings? 11. Would you be willing to work nights and weekends if necessary? The Board of Directors will notify you of their decision. Board of Directors Denton Central Appraisal District Denton Central Appraisal District 3911 Morse Street, P O Box 2816 Denton, Texas 76202-2816 (940) 349-3800 2005 DCAD APPRAISAL REVIEW BOARD Original Term—January 2001 Term Expires 12/31/2006 JOHN SOLBERG 2244 Stonegate Denton, TX 76205 940-387-3089 Original Term—April 2001 Term Expires 12/31/2006 JAMES M. DEAR 5122—FM 2931 Aubrey, TX 76227 940-365-9596 Original Term—January 2002 Term Expires 12/31/2005 BILL JAMES 3601 Derby Run Corinth, TX 76210 940-321-1117 Original Term—January 2002 Term Expires 12/31/2005 JACK WEIR 1212 Vista Verde Denton, TX 76210 940-484-8302 Original Term—January 2003 Term Expires 12/31/2006 PATRICIA STEELE 3507 Buckingham Corinth, TX 76210 940-498-9406 Original Term—January 2003 Term Expires 12/31/2006 SHIRLEY 14AISLER 1200 Cowling Rd. Sanger, TX 76266 940-458-3678 Original Term—January 2003 Term Expires 12/31/2005 HOWARD CREAMER P. O. Box 289 Little Elm, TX 75068 972-292-2212 Original Term—January 2003 Term Expires 12/31/2005 WILLIAM SINCLAIR No 52. Hidden Valley Rd. Shady Shores, TX 76208 940-321-3686 Original Term—January 2003 Term Expires 12/31/2005 PATRICK CARR, JR. 1116 Trophy Club Dr. Trophy Club,TX 76262 817-491-1153 Original Term—January 2003 Term Expires 12/31/2006 HURL SCRUGGS, JR. 712 Knollridge Dr. Lewisville,TX 75077 972-221-4323 Original Term—January 2003 Term Expires 12/31/2006 BETTY MCCRARY 1474 College Parkway Lewisville, TX 75077 972-221-1965 Original Term—January 2003 Term Expires 12/31/2006 FRED M.WILLIAMS 2704 Devonshire Dr. Carrollton, TX 75007 972-245-5060 Original Term—January 2002 Term Expires 12/31/2006 LOUIS HALL 717 E. Roewe St. Pilot Point, TX 76258 940-686-0062 Original Term—January 2005 Term Expires 12/31/2006 WILLIAM E. HOSKINS 4305 Essex Ct. Flower Mound, TX 75028 972-539-7574 Original Term—January 2005 Term Expires 12/31/2006 WAYNE GILLUM 504 South Kirby Pilot Point, TX 76258 940-686-2708 Original Term—January 2005 Term Expires 12/31/2006 DONALD L. MILLER 6710 Oliver Creek Road Justin, TX 76247 9410-648-3387 S:10ur Documents\Resolutions1051Appraisal Review Board 2005.doc RESOLUTION NO. A RESOLUTION NOMINATING MEMBERS TO THE APPRAISAL REVIEW BOARD OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for various Appraisal Review Board members 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, TEXAS HEREBY RESOLVES: SECTION 1. The City of Denton, Texas, hereby nominates and as members to the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. 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. SNYD CITY TTORNEY BY: AGENDA INFORMATION SHEET AGENDA DATE: November 15, 2005 DEPARTMENT: Legal Department CM/DCMIACM: Ed Snyder, City Attorney SUBJECT: CONSIDER AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DENYING THE REQUEST OF JNC PARTNERS DENTON, LLC DATED NOVEMBER 1, 2005 FOR INCLUSION IN A THREE-YEAR ANNEXATION PLAN RELATED TO ANNEXATION CASE NO. A05-0002 AND DECLINING ITS REQUEST FOR ARBITRATION; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND. On October 4, 2005 the City received a petition from JNC Partners Denton, LLC ("JNC") to be included in a three-year annexation plan under Subchapter C of Chapter 43 of the Texas Local Government Code. On October 18, 2005 pursuant to Ordinance No. 2005- 323 the City Council denied the petition. On November 1, 2005 JNC filed a new petition renewing its request to be included in a three-year annexation plan and requesting arbitration. This ordinance is a response to that new petition. OPTIONS: Approve the ordinance as proposed or approve an ordinance granting the petition. RECOMMENDATION: Staff recommends approval of the ordinance as proposed for the reasons stated in the proposed ordinance. Respectfully s itted, Ed Snyder City Attorney SAO-1 Doe mt$\Miscellaneous'055110805AISJNCW—Petitimdac ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS,DENYING THE REQUEST OF JNC PARTNERS DENTON, LLC. DATED NOVEMBER 1, 2005 FOR INCLUSION IN A THREE- YEAR ANNEXATION PLAN RELATED TO ANNEXATION CASE NO.A05-0002;DECLINING ITS REQUEST FOR ARBITRATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City proposes to annex approximately 5,800 acres of land(the"Annexation Area"), in Denton Annexation Case No. A05-0002; and WHEREAS, JNC Partners Denton, LLC ("JNC") filed a written petition dated October 4, 2005,pertaining to approximately 1,900 acres of land within the Annexation Area owned by JNC (the"JNC Property'),requesting that the JNC Property be included in a three-year annexation plan under Subchapter C of Chapter 43 of the Texas Local Government Code(the"JNC Petition"); and WHEREAS, on October 18, 2005, pursuant to Ordinance No. 2005-323 (the "Prior Ordinance"), the City Council denied the JNC Petition; and WHEREAS, all of the terms,conditions, and findings contained in the Prior Ordinance are incorporated herein by reference; and WHEREAS,on November 1,2005,JNC delivered to the City Council a new petition,a copy of which is attached hereto and made a part hereof by reference as Exhibit"A"(the"New Petition"), requesting reconsideration of the City Council's decision in the Prior Ordinance and requesting arbitration if the City Council does not reverse its decision;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 true and correct and are incorporated herein by reference. SECTION 2. The City Council hereby makes the following additional findings: a. Items 1 through 8 on pages 2 and 3 of the New Petition were proposed prior to December 31, 2002, and were either completed or withdrawn prior to that date. b. Items I through 8 on pages 2 and 3 of the New Petition relate to properties within Denton's Extraterritorial Jurisdiction("ETJ'),but that are located a considerable distance from the Annexation Area. c. Items 4 and 5 on page 2 of the New Petition were withdrawn by the City and the annexations were not completed. d. Item 7 on page 2 of the New Petition was not an involuntary annexation,as the property Page 1 owner changed it to a voluntary annexation prior to the initiation of the annexation. e. Item 9 on page 3 of the New Petition is incorrect, as the City did not propose or initiate an involuntary annexation along Corbin Road. f. The"Ash Grove Cement''proposed annexation referenced in Item 10 on page 2 of the New Petition was withdrawn by the City Council on November 1, 2005, and was not completed. SECTION 3. The City Council hereby denies the New Petition. The New Petition fails to identify involuntary annexations showing that the City of Denton proposes to circumvent the requirements of Section 43.052 of the Texas Local Government Code,by separately annexing two or more areas described in Subsection(i) of that section. SECTION 4. The City Council hereby declines to enter into arbitration as requested in the New Petition, as JNC fails to make a prima facie showing that the proposed annexation falls within the scope of Subsection 43.052(1)of the Texas Local Government Code. SECTION 5. This ordinance shall take effect immediately from and after 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 ITY TTORNEY BY: Page 2 Exhibit A 1717 Main Street,Suite 2800 HUGHES , WCE LLP Dallas,Texas 75201 ATTORNEYS AND COUNSELORS 214.939.5500 214.939.5849(fax) November 1,2005 Misty.Ventura @HughesLuoe.com Misty Ventura 214.939.5452 VIA HAND DELIVERY City of Denton c/o City of Denton City Council (Mayor Euline Brock,Perry McNeill, Charlye Heggins, Pete Kamp,Jack Thomson, Bob Montgomery, and Joe Mulroy) 215 E. McKinney Denton,Texas 76201 Re: Proposed annexation of approximately 5,800 acres (the"Annexation Area") located within the extraterritorial jurisdiction ("ETJ") of the City of Denton(the "City") pursuant to the City's proposed North Denton Annexation, A05-0002,including approximately 1,900 acres owned by JNC Partners Denton, LLC (the"JNC Property") Dear Mayor and Council Members: Hughes & Luce, LLP, represents JNC Partners Denton, LLC, the owner of the JNC Property. This letter addresses issues created by the City's plans to annex the JNC Property, and is with reservation of any and all rights and remedies my client has regarding that proposed annexation. The purpose of this letter is two-fold. First, in light of the evidence presented below, we would request that the City reconsider its denial of our request that the Annexation Area be included in the City s three-year annexation plan. Second, we hereby request arbitration of this dispute pursuant to Texas Local Government Code §43.052(1) and Hughes v. City of Rockwall, 153 S.W.3d 709 (Tex. App.—Dallas 2005) (attached). The City Has Failed to Take Action to Include the Annexation Area In Its Three-Year Annexation Plan. On September 2, 2005,by notice sent to property owners in the Annexation Area, the City proposed to annex the Annexation Area under Section 43.052(h)(1) of the Texas Local Government Code (the "(h)(1) exception"). On October 5, 2005, and pursuant to Texas Local Government Code § 43.052(i), JNC Partners Denton, LLC, petitioned the 015815.00010:934537.02 HUGHES ,WCE LLP ATTORNEYS AND COUNSELORS City of Denton November 1, 2005 Page 2 City to include the Annexation Area in the City's three-year annexation plan. On October 18, 2005,the City denied the request by approving Ordinance No. 2005-323 and thereby failed to take action to include the Annexation Area in its three-year annexation plan. Denton Has Proposed to Use The (h)(1) Exception At Least Eleven Times Since September 1 1999. The City has proposed, since September 1, 1999, to separately annex the following eleven areas using the (h)(1) exception: 1. On or about January 9, 2001, the City proposed to involuntarily annex approximately 668 acres of the "Ryan Road/Country Club Road" area under the (h)(1) exception. 2. On or about February 20, 2001, the City proposed to involuntarily annex approximately 534.acres of the "US 377/1-35W" area under the (h)(1) exception. 3. On or about April 3, 2001, the City proposed to involuntarily annex the "Blagg Road" area under the (h)(1) exception. 4. On or about July 24, 2001, the City proposed to involuntarily annex the "Masch Branch Road" area under the (h)(1) exception. 5. On or about July 24, 2001, the City proposed to involuntarily annex the "AGF Ranch" area under the (h)(1) exception. 6. On or about July 24, 2001, the City proposed to involuntarily annex the "Robson Ranch North" area under the (h)(1) exception. 7. On or about April 17, 2001, the City proposed to involuntarily annex a portion of the "Hunter Ranch" property under the (h)(1) exception. 8. On or about August 14, 2001, the City proposed to involuntarily annex approximately 104 acres owned by the TRIO Operating Company under the (h)(1) exception. 015815.00010:934537.02 HUGHES,WCE LLP ATTORNEYS AND COUNSELORS City of Denton November 1, 2005 Page 3 9. On or about October 1, 2003, the City proposed to involuntarily annex the "Corbin Road" area under the (h)(1) exception. 10. On or about August 24, 2004, the City proposed to involuntarily annex the "AshGrove Cement" area under the (h)(1) exception. 11. On or about October 4, 2005, the City proposed to involuntarily annex the JNC Property and other neighboring tracts under the (h)(1) exception. The City's serial use of the (h)(1) exception violates § 43.052 of the Texas Local Government Code. Denton's Stated Poli Of ReactionAU Involunt@a Annexation Is Not In Accordance With Generally Accepted Municipal Planning Principles and Practices. As noted in our previous letter, the City's "annexation plan" is really no plan at all. Instead, it is the City's stated policy to assess "on a case-by-case basis the annexation of areas in the extraterritorial jurisdiction (ETJ) when significant developments are proposed, occurring, or likely to occur in the near future." City of Denton Ord. No. 94-150. The City has further stated that"annexation should be used as a tool to manage undesirable growth." Memorandum from Dave Hill to the Mayor and City Council. Members, July 20, 2001. Rather than preparing a true three-year annexation plan to manage growth within its ETJ, the City waits for development to be proposed,then institutes involuntary annexation proceedings against the property. This is not sound planning. Such a process does nothing to produce rational, effective municipal boundaries. Instead, it results in rag tag, gerrymandered boundaries that snake from development to development, omitting vast areas of land in-between. Reactionary annexation also circumvents the will of the Legislature that owners of areas to be annexed be given sufficient time to anticipate and plan for the annexation. Reactionary annexation results in unwise management of municipal growth, gerrymandered municipal boundaries, and unfair treatment of landowners within the City's ETJ. The Annexation Plan Should Be Amended. The Local Government Code provides a safeguard against the approach the City has taken. Section 43.052(1) provides that a municipality may not circumvent the 015815.00010:434537.02 HUGHES ,WCE LLP ATTORNEYS AND COUNSELORS City of Denton November 1,2005 Page 4 requirements of Section 43-052 by proposing to separately annex two or more areas under the (h)(1) exception if no reason exists under generally accepted municipal planning principles and practices for separately annexing the areas. In other words, the (h)(1) exception cannot be used merely to circumvent the statutorily required three-year annexation plan. Not only has the City proposed to separately annex at least eleven properties using the (h)(1) exception, the City's stated annexation policy is to annex in reaction to proposed development within the City's ETJ. Such a reactionary scheme is not in accordance with generally accepted municipal planning principles and practices; as such,the City's actions violate Section 43.052 of the Local Government Code. In Iight of this evidence, JNC Partners Denton, LLC,-" requests that the City reconsider its decision and include the INC Property in the City's formal, three-year annexation plan as required under Chapter 43 of the Local Government Code. INC Partners Denton, LLC, respectfully requests that the City respond to this request no later than November 15,2005. NC Partners Denton LLC Requests Arbitration of This Dispute. JNC Partners Denton, LLC, requested that the Annexation Area be included in the City's three-year annexation plan. The City failed to take the necessary action to include the Annexation Area in the City's plan. Texas Local Government Code § 43.052(1) gives JNC Partners Denton, LLC, the right to request and receive arbitration of this dispute. Hughes v. City of Rockwall, 153 S.W.3d 709 (Tex. App.—Dallas 2005) (attached). JNC Partners Denton, LLC, hereby requests arbitration as provided by Texas Local Government Code § 43.052(i). Please provide a list of arbitrators that are acceptable to the City no later than November 15, 2005, the time period described in Texas Local Government Code § 43.0564(b,) so that we may reach an agreement, if possible, as to the arbitrator who will determine this dispute. Should we be unable to reach an agreement regarding the arbitrator by November 15,2005, as required by Texas Local Government Code §43.0564(b), we ask that the City immediately request a list of seven neutral arbitrations from the American Arbitration Association or the Federal Mediation and Conciliation Service as the statute provides. We also ask that we be copied on any communications between the City and the American Arbitration 015815.00010:934537.02 HUGHES i WCE LLP ATTORNEYS AND COUNSELORS City of Denton November 1, 2005 Page 5 Association or the City and the Federal Mediation and Conciliation Service regarding the list of arbitrators. Respectfplly, V. lb,Misty V ntura cc: City of Denton City Secretary Attorney General Greg Abbott Daxlia Hobbs,Citizens Against Forced Annexation Enclosure 015815.00010:934537.02