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HomeMy WebLinkAboutMay 2, 2006 Agenda AGENDA CITY OF DENTON CITY COUNCIL May 2, 2006 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, May 2, 2006 at 4:45 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Receive a report, hold a discussion, and give staff direction regarding an update on the City's Long-Range Financial Forecast. 2. Receive a report, hold a discussion, and give staff direction regarding Request for Proposal #3482 - Bank Depository Services. 3. Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of May 2, 2006. 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, and receipt of legal advice, regarding potential bargaining issues to be raised by management team representatives during Meet and Confer negotiations with the Denton Police Officers Association, pursuant to Texas Local Government Code sec. 142.051 et seq. A private caucus on this topic is specifically authorized by Texas Local Government Code 142.063(b), and public discussion would otherwise conflict with the duties of the City's attorneys to maintain confidential communications with the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Consider and discuss status of litigation styled Sheldon Bromberg v. City of Denton, Cause No. 2005-40017-362, currently pending in the 362nd District Court, Denton County, Texas. 3. Consultation with the City's attorneys regarding legal issues, including defense of pending litigation filed by JNC Denton Partners, LLC, 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, plat applications, annexation plans, development agreements, City of Denton City Council Agenda May 2, 2006 Page 2 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. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council on Tuesday, May 2, 2006 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 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. Citizens may speak on items listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Consent Agenda. Citizen comments on Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A - P). 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 - P 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. City of Denton City Council Agenda May 2, 2006 Page 3 A. Consider adoption of an ordinance abandoning and vacating a 0.5562 acre public drainage easement from Windjammer, Ltd. to City of Denton recorded by County Clerk file number 2005-38412 of the Real Property Records of Denton County, Texas, and a 0.0794 acre public drainage easement from Windjammer, Ltd. to City of Denton recorded by County Clerk file number 2005-38416 of the Real Property Records of Denton County, Texas, in the M.E.P. & P.R.R. Survey, Abstract No. 950; and declaring an effective date. The Public Utilities Board recommends approval (7-0). B. Consider adoption of an ordinance authorizing the City Manager to approve an amendment to the Memorandum of Understanding (MOU) between the City of Denton and the University of North Texas dated May 1, 2003 to extend the terms of the MOU for an additional three year term; said MOU providing for collaborative research projects; providing for the expenditure of funds therefor; and declaring an effective date. The Public Utilities Board recommends approval (7-0). C. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to submit an application under the National School Lunch Act to obtain funding for the 2006 Summer Food Service Program; if such funding is granted, the City Manager is authorized to execute the Summer Food Service Program agreement with the Texas Health and Human Services Commission and execute a contract with the Denton Independent School District and all additional documents and agreements, as required; authorizing the expenditure of funds to administer the program; and providing an effective date. The Parks, Recreation and Beautification Board recommends approval (4-0). D. Consider adoption of an ordinance amending, repealing and replacing Ordinance No. 2004-206 of the City of Denton, Texas, establishing fees to be charged for emergency ambulance services and standby emergency ambulance services in the City as provided for in Sec. 27-102 of Article IV of Chapter 27 "Vehicles For Hire" of the Code of Ordinances of the City of Denton, Texas; repealing all ordinances in conflict herewith; providing a severability clause; and providing for an effective date. E. Consider approval of tax refunds for the following property taxes: Name Reason year Amount I . LJRN Partners Ltd D(',-\D Supplcmcnt~d 2005 $8. 102.45 Change (~aluc rhangc) W clls L~irgo;Vlcndoz'i. Oscar U~crp"iymcnt 2005 `G2.679.51 3. S 16 N BJ1 LLC DCAD supplemental 2005 $16-16.3 6 Change tiluc changcl 4. Hunt. AVilliam Linda Duplic~itc P,,ivmcnt 2005 $1.652.51 5. First Amcrican Ciu11a. Don Duplicate P,,ivmcnt 2005 `G1.630.70 6. Countr\ vvidc Gasconik. Ampcr U\crp~iymcnt 2005 $1.458.25 7. S 16 N BJ1 LLC DCAD Supplemental 2005 $1.3 5 3.31 Change a1uc changcl 8. Wclls Far(-,oNca1. Phillip&- Melissa Duplic~itc P,,ivmcnt 2005 $1.299.51 9. First Amcrican St,,inscll. John S,,dk Duplicate P~ivmcnt 2005 $1-116.11 City of Denton City Council Agenda May 2, 2006 Page 4 Tax Name Reason Year Amount 10. Wells Fargo/Cowan_ Michael Duplicate Payment 2005 $1.012.94 1 I . AFells L~irgo; S~ila. Dcbra Duplic itc Pavmcnt 2005 $ 961.08 11 \Vclls Fargo;A~ ~1C Vlortgagc Corp Duplicate P~ivmcnt 2005 $ 941.67 13. AFells Fir(-ToJoncs. Vl,irv Duplic itc Pavmcnt 2005 $ 865.03 14. AVclls Fargo Abbott. Mike Duplicate Pavmcnt 2005 $ 560.05 1 AVclls Fargo\Vcstbur~. Sally Duplicate Pavmcnt 200 $ 8510 16. (luinoncz. Alan AVholcsalc Auto U\ crp"ivmcnt 2005 $ 549.17 17. AVclls Fargo Jessup. Robca Duplicate Pavmcnt 2005 $ 544.71 18. AVclls Fargo; Lrikson. Lori Duplicate Pavmcnt 2005 $ 516.67 19. First Amcrican'Sawvcr. Thomas Duplicate Pavmcnt 2005 $ 753.02 20. AVclls Fargo; Sartin. Ottis Duplicate Pavmcnt 2005 $ 707.56 21. First Amcrican'Haskcll. . Cyrus Duplicate Pavmcnt 2005 $ 707.10 First Amcrican Picrcc. Brian Marv Bcth Duplicate Pavmcnt 2005 $ 699.76 23. AVclls FargoKlcin. Pamela Duplicate Pavmcnt 2005 $ 664.1 1 24. Countr\ vvidcScott. C31akc Susan Duplicate Pavmcnt 2005 $ 571.51 2~. First Amcrican'Thomas. Scott Duplicate Pavmcnt 200 $ ~S8.93 26. Wells Fargo/Massey, Robert & Louise Duplicate Payment 2005 $ 507.36 F. Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a professional services agreement with R. J. Covington Consulting, LLC for consulting services relating to Task Order No. 06-E providing for Development of Purchased Power Agreement for Nodal Market for Denton Municipal Electric; authorizing the expenditure of funds therefore; and providing an effective date. The Public Utilities Board recommends approval (6-0.) G. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement with Solutient Geosciences, Inc. for performing assessment monitoring and a groundwater monitoring system re-certification of the City of Denton, Texas Municipal Solid Waste Landfill; authorizing the expenditure of funds therefor; providing for retroactive ratification and approval thereof, and providing an effective date. The Public Utilities Board recommends approval (6-0). H. Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 3498 - 2006 Electrical Energy Transmission Fees Final Matrix in the total amount of $302,370). The Public Utilities Board recommends approval (7-0). L Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order with the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of two 500 gallon pumper trucks for the City of Denton Fire Department by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3500 - Interlocal Agreement for Purchase of Two Fire Trucks with H-GAC awarded to Martin Apparatus, Inc. in the amount of $874,612). City of Denton City Council Agenda May 2, 2006 Page 5 J. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the Parvin 15/21" Sanitary Sewer Line Project for the City of Denton Water/Wastewater Utilities Division; providing for the expenditure of funds therefor; and providing an effective date (Bid 3480 - Parvin Sanitary Sewer Line awarded to Wilson Contractor Services, L.L.C. in an amount not to exceed $238,479.60). The Public Utilities Board recommends approval (7-0). K. Consider adoption of an ordinance approving and authorizing the Mayor to execute a First Amendment to the Asset Purchase Agreement transferring all buses, equipment and other related assets from the City Passenger Motor Carrier Transit System known as LINK to the Denton County Transportation Authority; authorizing an extension of the time for Federal Transit Administration approval to March 30, 2007; authorizing the City Manager to take necessary actions to complete the transfer and providing an effective date. The Mobility Committee recommends approval (4-0). L. Consider an ordinance of the City of Denton, Texas, approving and authorizing the Denton Air Fair Committee and the Association of Competition Air Show Pilots, an Alabama L.L.C. ("ACAP") to hold an Air Fair at the Denton Municipal Airport on May 20 and 21, 2006, authorizing the concession to ACAP and the Denton Air Fair Committee to sell alcoholic beverages at places and locations during the 2006 Air Fair event; amending Chapter 3 "Airports" of the City Code to allow waiver of or substitution of insurance requirements; and providing an effective date. The Airport Advisory Board recommends approval (5-0). M. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Our Daily Bread to assist in providing food supplies for the homeless and destitute in Denton; providing for the expenditure of funds therefor; and providing an effective date. N. Consider adoption of an ordinance of the City of Denton, Texas authorizing settlement of litigation styled Sheldon Bromberg v. City of Denton, Cause No. 2005-40017-362, currently pending in the 362nd District Court of Denton County; authorizing the City Manager and City attorneys to act on the City's behalf in executing any and all documents, and to take other actions necessary to finalize the settlement and release of claims; authorizing the expenditure of funds therefor; and declaring an effective date. 0. Consider approval of a resolution of the City Council of the City of Denton, Texas, consenting to the inclusion of its extraterritorial jurisdiction within the proposed Denton County Emergency Services District No. 1 pursuant to Chapter 775 of the Texas Health and Safety Code; authorizing the Mayor to notify the County Commissioners Court and representative of the Denton County Emergency Services District No. 1 of this consent; and providing an effective date. City of Denton City Council Agenda May 2, 2006 Page 6 P. Consider approval of the minutes of: March 21, 2006 April 3, 2006 April 4, 2006 April 11, 2006 4. PUBLIC HEARINGS A. Hold the second of two public hearings to consider annexing approximately 3,406 acres into the corporate city limits of the City of Denton, Texas. The property is bounded by Tom Cole Road to the north, FM 2449 bisects the property near the center of the development and John Payne Road is the eastern boundary south of FM 2449. Underwood Drive is on the eastern side of the property north of FM 2449. The property is bounded on the west by H. Lively Road/C. Wolfe Road and extends to the south a distance of approximately 6,500 linear feet from FM 2449. The property to be annexed is generally located in the southwestern area of the City of Denton's Extraterritorial Jurisdiction (ETJ). There has been no previous Planning and Zoning Commission action. (A06-0001, Cole Ranch) B. Hold a public hearing and consider adoption of an ordinance regarding a Comprehensive Plan Amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 5.74- acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35. The site is zoned a Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) zoning district. The property is currently undeveloped and the owner proposes to build a rehabilitation hospital. The Planning and Zoning Commission recommends approval (6-0). (CA6-0001, Select Medical) C. Hold a public hearing and consider adopting and ordinance regarding a zoning change for a 5.74-acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35 with consideration being given to the use of an Overlay District to further restrict uses on the subject property. The applicant is requesting a change from Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential-6 (NR-6) zoning districts to a Regional Center Commercial- Downtown (RCC-D) zoning district. The Planning and Zoning Commission recommends approval (6-0). (Z06-0007, Select Medical) D. Hold a public hearing and consider adoption of an ordinance amending portions of Subchapter 16 (Subdivisions) of the Denton Development Code; providing for a severability clause and an effective date. The Planning and Zoning Commission recommends approval (6-1). (DCA06-0003, Subchapter 16 Amendments) E. Continue a public hearing and consider adoption of an ordinance regarding the rezoning of approximately 58.26 acres from a Neighborhood Residential-2 (NR- 2) zoning district to a Neighborhood Residential-4 (NR-4) zoning district with an overlay district. The property is located at the southwest corner of Teasley Lane and Ryan Road. The Planning and Zoning Commission recommends denial (5-0). (Z06-0006, Teasley Park) SUPER MAJORITY VOTE REQUIRED FOR APPROVAL. City of Denton City Council Agenda May 2, 2006 Page 7 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance amending the Water Conservation and Drought Contingency Plan of the City of Denton previously enacted by the City Council in Ordinance No. 2005-121 on the 19th day of April, 2005 by adding to it Appendix "G", "The Land and Landscape Irrigation and Water Waste Ordinance"; amending the Water Conservation and Drought Contingency Plan in accordance with the requirements of the law; establishing lawn and landscape irrigation requirements; implementing water-wasting restrictions; requiring rain sensors and freeze gauges; providing for variances; providing for the revocation of variances; and providing penalties for violations thereof, providing a criminal penalty not to exceed $2,000 per violation; providing a civil penalty not to exceed $1,000 per day per violation and providing legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. The Public Utilities Board recommends approval (7-0). B. Announcement of Council Member Pete Kamp's conflict of interest in the Emergency Shelter Grant Program ("ESGP"), due to her service on the Salvation Army Advisory Council, a potential contract recipient of ESGP funds, in accordance with the requirements of 24 CFR 576.57(d) and consider and take action to authorize the City staff to initiate the process of submitting an application to HUD through the Texas Department of Housing and Community Affairs for an exception to the conflict. C. Consider approval of a resolution ordering Atmos Energy, Mid-Tex Division to show cause regarding the reasonableness of its existing natural gas distribution rates within the City; requiring Atmos Energy, Mid-Tex Division, to submit a rate filing package based on a test year ending December 31, 2005; authorizing the City to join with other cities known as the Atmos Texas Municipalities ("ATM") to direct the activities of lawyers and consultants; authorizing the hiring of attorneys and consultants; directing that such filing shall be made prior to May 31, 2006; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting complies with the Open Meetings Act; making such other findings and provisions related to the subject; and declaring an effective date. D. Consider approval of a resolution authorizing the suspension of the effective date until July 14, 2006 for the Gas Reliability Infrastructure Program Adjustments for calendar year 2005 proposed by Atmos Energy Corporation's Mid-Tex Division (Atmos Energy); authorizing participation in a coalition of cities known as Atmos Texas Municipalities ("ATM"); authorizing the hiring of lawyers and rate experts; authorizing the City's participation to the full extent permitted by law at the Railroad Commission of Texas with regard to any Gas Reliability Infrastructure Program adjustments proposed by Atmos Energy; requiring the reimbursement of municipal rate case expenses; finding that the meeting complied with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. City of Denton City Council Agenda May 2, 2006 Page 8 E. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: A. Bob Clifton regarding city business. B. Jane Wilson regarding city services. C. Jordan Hudspeth regarding concerns of Southeast Denton. D. Lanisha Hudspeth regarding concerns of Southeast Denton. E. Hagar Hudspeth regarding concerns of Southeast Denton. F. Willie Hudspeth regarding concerns of Southeast Denton. G. Lari Gibbons regarding Unicorn Lake. H. Jennifer Larson-Hall regarding Unicorn Lake overlay. L David Radabaugh regarding Unicorn Lake Development Project. J. Jack Deeb regarding trash pickup and city management response. F. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. G. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda H. 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. 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 , 2006 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: May 2, 2006 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding an update on the City's Long-Range Financial Forecast. BACKGROUND In congruence with the agreed process of updating the Council on the financial forecast, I would like to present you with the information shared at the Audit Committee meeting on April 19. Included in this memo are a draft of the meeting minutes and a copy of the issue reports discussed at the meeting. At the May 2 work session you will have the opportunity to ask questions you may have regarding this information. Our next scheduled meeting with the Audit Committee is also Tuesday, May 2. Staff will be presenting the next set of issue reports at this committee meeting. Per the agreed process of disseminating information, the Council will receive additional information in the near future. FISCAL INFORMATION The Long-Range Financial Forecast is used to develop future budgets. ATTACHMENTS 1-April 19 Audit Committee Agenda 2-April 19 Audit Committee AIS 3-April 19 Draft of Audit Committee Minutes 4-March 30 Audit Committee Minutes 5-Internal Audit Control Memorandum 6-General Fund Long Range Financial Forecast Assumption List 7-Financial Forecast 8-Changes to Financial Forecast 9-General Fund Balance Issue Report 10-Municipal Court Technology Fee Issue Report 11-Municipal Court Security Fee Issue Report 12-Utilities: General Fund Issue Report May 2 Agenda Information Sheet Financial Forecast Update Page 2 ATTACHMENTS 13-Utility Expenses Chart 14-Gas, Oil and Diesel Issue Report 15-Gas, Oil and Diesel Chart 16-Fines and Fees Issue Report 17- Fines and Fees Issue Chart 18-Charges to Bond Funds Issue Report 19-Airport Capital Projects Issue Report Respectfully submitted: y" I Jon Fortune Assistant City Manager ity of 215 E. McKinney St. Denton, Texas 76201 (940) 349-8996 • FAX (940) 382-7923 n erna u AUDIT COMMITTEE AGENDA For Meeting: April 19, 2006, 8:30 -10:30 a.m. City Council Work Session Room After determining that a quorum is present, the Audit Committee of the City of Denton, Texas will convene in a regular meeting, Wednesday, April 19, 2006, at 8:30 a.m. in the City Council Work Session room, at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Consider approval of Audit Committee minutes of: A. March 30, 2006 2. Audit Updates - This section allows for brief updates to the Committee concerning activities of the Audit Department or prior Committee activities. A. Review the Internal Audit Control memo, dated April 12, 2006, hold a discussion, and give staff direction regarding their plan of action. 3. Receive a report, hold a discussion, and give staff direction on the City Five-Year Plan. 4. New Business - This item provides an opportunity for the Committee members to suggest items for future agendas or to request information for future meetings. 5. Closed Meeting - The Audit Committee 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. 6. Subsequent Meeting Schedule - Discuss subsequent meeting needs and schedules - A. Determine changes in proposed meeting schedules B. Currently Audit Committee meetings scheduled are: DATE TIME LOCATION May 2, 2006 2:00 PM to 4:00 PM Legal/Accounting Conference Room May 15, 2006 10:00 AM to 12:00 PM Council Work Session Room June 9, 2006 11:00 AM to 1:00 PM Council Work Session Room June 21, 2006 10:00 AM to 12:00 PM Council Work Session Room Dedicated to Quality Service www.cityofdenton.com AUDIT COMMITTEE AGENDA INFORMATION SHEET AGENDA DATE: April 19, 2006 DEPARTMENT: Finance/Budget ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding the City's five- year financial forecast. BACKGROUND Attached you will find the latest draft of the 2006 through 2011 financial forecast. I have also included some additional issue papers to discuss at your April 19th meeting. • General Fund Balance • Municipal Court Technology Fee • Municipal Court Security Fee • Utilities - General Fund • Gas, Oil and Diesel • Fines and Fees • Charges to Bond Funds • Airport Capital Projects For your convenience, tabs are being provided so that you may simply insert this .information into the three-ring binder provided to you on March 24. Also in attempt to help you keep track of changes as they are made during this process, I have attached to the financial forecast a log of changes made since this information was presented to the City Council on April 3. This log will provide a convenient place for you to note changes without having to refer to the material previously provided and compare it to the latest version of the forecast. To help you note specific changes made to assumptions, the assumptions that have changed will be printed in bold font. Thank you for your guidance as we continue to work through specifics of the City's long-range financial plan. I look forward to presenting this information to you on April 19. Until then, please don't hesitate to contact me if you have any questions. Respectfully submitted: 1)dYl ~t~ Jon Fortune ACM DRAFT DRAFT AUDIT OMMITTEE DRAFT APRIL 19, 2006 After determining that a quorum was present, the Audit Committee of the City of Denton, Texas convened in a regular session at 8:31 a.m., Wednesday, April 19, 2006, in the City Council Work Session room, at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Mayor Euline Brock, Councilmember Charlye Heggins, and Councilmember Joe Mulroy EX OFFICIO MEMBERS: Howard Martin, City Manager Jon Fortune, Assistant City Manager Andrea Gage, Internal Auditor Susan Croff, Utility Process/Quality Control Auditor Mayor Euline Brock called the meeting to order at 8:31 a.m. 1. Consider approval of Audit Committee minutes of: A. March 30, 2006 Minutes approved 3-0 as circulated. 2. Audit Updates - This section allows for brief updates to the Committee concerning activities of the Audit Department or prior Committee activities. A. Review the Internal Audit Control memo, dated April 12, 2006, hold a discussion, and give staff direction regarding their plan of action. Councilmember Joe Mulroy stated that due to a limited budget, a consultant should be contracted to perform a high-level assessment of the areas of risk for the City and develop priorities for a 5- year plan for internal control review. A two-tiered approach should be utilized to allow the high-risk areas to be reviewed every 1 to 2 years, and the lower risk areas be reviewed every 3 to 5 years. 3. Receive a report, hold a discussion and give staff direction on the City Five-Year Plan. Changes to Long Range Forecast: The Morrison Milling lease at City Hall East will expire next year. The loss of revenue from the lease was calculated into the budget for 2006-07 as well as the remodel of City Hall East in the following budget years. 1 of 4 DRAFT Police Position Additions: Councilmember Mulroy questioned how could the City ask for money from Council to hire more police officers, when current officers are not being utilized appropriately. ACM Fortune responded that the City is currently looking into which jobs currently filled by Certified Peace Officers could be filled by civilian employees and reviewing efficient use of all resources. Action Item: Councilmember Mulroy requested staff fulfill their commitment and produce the 5-year plan sooner rather than later. In addition, they need to make sure that their operation is efficient before asking for additional resources. Budgeting for Pay Increases: Councilmember Mulroy stated that remuneration should be the first item in the base budget, as opposed to a number based on what is left over or necessary to balance the budget. A benchmark tool could be established similar to other cities to determine cost of living increases, and then allow funds for merit or pay for performance. Councilmember Mulroy requested clarification on "split-years" if a pay increase was granted mid-budget year. ACM Fortune stated they are currently in the high-level planning stages regarding pay increases. Action Item: Councilmember Mulroy requested staff evaluate different benchmarks for cost of living raises along with a strategy for including cost of living and merit increases in the budget. Action Item: Concerning future health insurance costs, Councilmember Mulroy suggested staff needed to build in some flexibility to address future increases in health costs, and not let the 3% become a standard. General Fund Balance: The goal is to obtain 15% fund balance, which currently represents a 55 day reserve. The increased fund balance is one factor needed to help maintain our bond rating of AA. A drop in bond rating would cost approximately $25,000 in additional interest cost per million of debt. Municipal Court Technology Fee: The $4 Misdemeanor Fee pays direct cost allocation to Technical Services for support of all technical systems in Municipal Court Budget. This is a state regulated fee capped at $4. Action Item: Councilmember Mulroy requested that staff determine if we can charge our own technology fee. Municipal Court Building Security Fee: The $3 Fee can only be used for security services in the building housing the court. 2 of 4 DRAFT Utilities - General Fund: Streetlights are non-metered and Denton adds approximately 200 per year. There are currently a few styles that are maintained by the City. Councilmember Mulroy questioned the logic in offering a variety of styles. He requested that staff look at who is responsible for installation and redirecting that cost and responsibility to the developer and require maintenance warranties. Interim City Manager Howard Martin offered that consistency, inventory and maintenance were issues for the City. Although developers offer to maintain them for a period of time, the citizens expect the City to maintain all streetlights. Councilmember Mulroy stated an option would be for HOA's to provide a bond for installation and maintenance of non-conforming styles of streetlights to be installed or maintained, as well as maintaining green spaces and private pavements. Action Item: Councilmember Mulroy requested staff determine who is responsible for installing streetlights, the City or the developers. Staff needs to determine if the developers and Home Owner's Associations can carry the installation costs. In addition, can we standardize streetlights or require bonding and warranties if a builder chooses to use something other than the standard. Currently the City is paying for the utilities and maintenance of the Center for the Visual Arts and the Campus Theater. Mayor Brock offered that the contract with the Greater Denton Arts Council should be changed to where the GDAC is responsible for a portion of the bill, however, if they were responsible for the whole bill, then the Visual Arts Center would have to shut down. Councilmember Mulroy suggested a philosophy should be developed with consideration given to cost sharing and incentives to promote good stewardship. The subject of increasing fees at Animal Control for non-city use of the new incinerator will be on the May 9, 2006 Work Session to improve offset. Budget Amendment request: There will be a budget amendment put before Council for the increased fuel costs. This increase was not anticipated on the original budget. Charges to Bond Funds: Councilmember Mulroy stated that the City should bullet proof any assignment of publicly approved capital funding for administrative charges. He asked that management come up with a better method of assigning costs applied against the bond funds. ACM Fortune stated the City would come back with a recommendation. Action Item: from Councilmember Mulroy: Staff needs to develop a defendable method when assigning any funds approved in the Capital Improvements Plan. Additionally, do contractors pay any portion of bond administration fees as part of the contract with the City? For the Work Session on May 2nd ACM Fortune will provide and update and the additional information requested to Council. 4. New Business - This item provides an opportunity for the Committee members to suggest items for future agendas or to request information for future meetings. 5. Closed Meeting - The Audit Committee 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. 3 of 4 DRAFT 6. Subsequent Meeting Schedule - Discuss subsequent meeting needs and schedules - A. Determine changes in proposed meeting schedules B. Currently scheduled Audit Committee meetings scheduled are: DATE TIME LOCATION May 2, 2006 2:00 PM to 4:00 PM Legal/Accounting Conference Room Ma 15, 2006 10:00 AM to 12:00 PM Council Work Session Room June 9, 2006 11:00 AM to 1:00 PM Council Work Session Room June 21, 2006 10:00 AM to 12:00 PM Council Work Session Room The meeting adjourned at 10:04 a.m. 4 of 4 F 215 E. McKinney St. Denton, Texas 76201 (940) 349-8996 • FAX (940) 382-7923 Internal Audit AUDIT COMMITTEE MINUTES For Meeting: March 30, 2006, 3:12 - 4:53 p.m. City Council Work Session Room After determining that a quorum was present, the Audit Committee of the City of Denton, Texas convened in a regular session at 3:12 p.m., Thursday, March 30, 2006, in the City Council Work Session room, at City Hall, 215 E. McKinney Street, Denton, Texas and the following items were considered: 1. Receive a report, hold a discussion, and give staff direction on the resolution ratifying the Audit Committee and the Council Audit Committee Directive, Audit Committee Bylaws and Internal Audit Charge. ACTION: The Committee recommended 3-0 to present the resolution and three attached documents to Council to establish and give direction concerning the activities of the Audit Committee and the Audit Department. This resolution would supercede Resolution 82005-052 passed on December 13, 2005. DISCUSSION: Andrea Gage gave a brief summary of the three Audit documents recommended to establish and direct the activities of the Audit Committee and Audit Department. A discussion took place concerning the role of the Committee, and two specific items pertaining to the content of the documents. a. Mayor Brock stated that it might take some time to define and determine the role of the Committee. Councilmember Mulroy added that the Committee held a directorial position for audit, both internal and external. However, the Committee was to focus on the principles of presentation and review for financial data that is constructed by management. Councilmember Mulroy added that Council could assign the Committee items to review in greater detail so as not to derail the Council session. Mayor Brock stated that the Committee could get a greater understanding of the information and advise management on presentation requirements as it relates to Council perspective. Interim City Manager Martin stated that the degree of financial oversight will change over time, with the increased ability of management to present the information and transparency is evident. Councilmember Mulroy stated the documents were well written to capture and describe the responsibilities of the Audit Committee functions. Councilmember Heggins Dedicated to Quality Service www.cityofdenton.com stated that the definition of responsibilities very adequately describes the role of the Committee in regards to financial oversight. b. The committee held a discussion concerning the name of the Committee as Audit Committee or Finance/Audit Committee. Andrea Gage handed out additional information identifying differences between the purposes of audit and finance committees. It was determined and agreed that the Audit Committee, as set forth in the charge and bylaws, fulfilled the intended purpose. Adding "finance" to the name of the committee could be portraying a more advisory role as opposed to an oversight role. c. Mayor Brock noted that Audit Committee Bylaws, Section 3.2 was in direct conflict with the charge given to the Council Ethic Committee. It was discussed that the Audit Committee's responsibility would apply only as it relate to financial reporting. 2. Receive a report, hold a discussion, and give staff direction on the City Five-Year Plan. ACTION: The Audit Committee agreed 3-0 that the information presented as the 2006-2011 Financial Forecast was a good beginning to provide a transparent financial overview. Councilmember Mulroy suggested that for future Audit Committee meetings, the Council should receive the information intact, with a copy of the Audit Committee minutes capturing the Committee discussions and conclusions as a cover. This would allow Council the benefit of the discussion detail as well as access to the supporting information. The electric franchise fee was presented in two parts, one for open, and one for closed session. It was requested that the items be presented as one item in the future. Mayor Brock asked that information evaluating property tax incentives be presented to the Economic Development Partnership (EDP) Board and the Chamber of Commerce. The Mayor also requested the status of the Teasley Partners and Denton Crossing sales tax incentives be presented to the EDP Board. Also regarding sales tax, Assistant City Manager (ACM) Jon Fortune suggested a closed session be scheduled for the entire Council to discuss any issues surrounding Acme Brick. Several recommendations were given regarding presentation to Council. First, Councilmember Mulroy suggested management include a discussion on the benefits of having a healthy fund balance. Councilmember Mulroy, along with encouragement from Councilmember Heggins, encouraged management to provide non-technical explanations of both return on investment (ROI) and franchise fees. Several requests concerning information for future Committee meetings were compiled. Councilmember Mulroy suggested that the electric challenges, including the decreasing rate stabilization fund, the Texas Municipal Power Association (TMPA) debt and the impact of the market be a base consideration for the financial forecast. He added that the information regarding electric franchise fees should be simplified to a few bullets and not allowed to focus on the Energy Cost Adjustment during the presentation of the overall financial picture. Councilmember Mulroy stated funds for salary increases need to be included in the budget and not used as a balancing tool at the final stages. In addition, the strategy for future salary savings needs to be evaluated to ensure it is clear and motivates proper behavior. Councilmember Mulroy requested that salary increases related to step be quantified and articulated. Regarding gas wells, Councilmember Mulroy suggested management should make sure that we do not anticipate or depend on gas well revenue. ACM Fortune indicated that he would perform research to determine the proper and best way to record and report gas revenue as it relates to the tax rate calculation, budget and fund balance. DISCUSSION: ACM Fortune, presented the Committee a handout that summarized the presentation on the City's 2006-2001 Financial Forecast and a handout outlining the assumptions used for estimating revenue and expenditures. The information presented on 6 issues included: 1) Ad Valorem Tax, 2) Sales and Use Tax, 3) Denton Municipal Electric Franchise Fees, 4) Denton Municipal Electric Return on Investment, 5) General Debt Service Fund, and 6) Salary Savings. Following are the discussions for each of those issues: a. Councilmember Mulroy stated that the financial forecast could not be completed without taking into consideration the 10-20 year consequences and profile of the electric rate stabilization fund. The impact of the market, decreasing stabilization fund balance, and up-coming TMPA debt requirements, have to be basic drivers when considering the organization's financial forecast. Interim City Manager Martin agreed and stated it was management's intent to do that, and that the information was being compiled and would be presented at a future meeting. b. ACM Fortune noted there were two large items that were potential problems facing the current budget that may require attention in the future. The unanticipated increase in the energy cost adjustment is resulting in an estimated budget utility expense overage of $480,000. In addition, the movement of prior year gas well revenues to a restricted fund, resulted in a decrease in the general fund of approximately $417,000. ACM Fortune also mentioned that the goal is to increase the fund balance to the next level of 14 1/ Councilmember Mulroy stated that management should include a discussion of the of the benefits of a healthy fund balance, such as interest savings/interest avoidance, the City receives in regards to bonds. c. During the discussion of the ad valorem taxes, ACM Fortune noted that the allocation of the delinquent collections would now be distributed between debt service and operations & maintenance funds, at the appropriate ratios for the period the taxes were assessed. ACM Fortune discussed the related assumptions used in the forecast and indicated the current split for ad valorem taxes was set at 70% to operations & maintenance and 30% to debt service. Councilmember Mulroy suggested that management might want to leave a cushion to ensure the general fund is not relying on volatile revenues. ACM Fortune indicated that he would perform research to determine the proper and best way to record and report gas revenue as it relates to the tax rate calculation, budget and fund balance. Councilmember Mulroy also stated that the gas revenue should not be looked at as a repeating source of income, but rather as a one-time extraordinary revenue. When looking at expending gas revenues, costs of the gas well effects, such as road deterioration, should be considered. Councilmember Mulroy also suggested analyzing the gas revenue proportionately to the total tax. d. ACM Fortune presented the information regarding ad valorem tax abatements and rebates. Mayor Brock asked that this information be presented to the Economic Development Partnership (EDP) Board. This information would show the board the impact of incentive decisions, plus help them project the amount of growth needed to support the decision. The Mayor also felt it would be a good presentation to put before the Chamber of Commerce. Councilmember Mulroy added that incentive decision need to remain discretionary so that businesses did not assume that incentives were automatic. Interim City Manager Martin wanted the Committee to be aware that incentives often included additional costs to the City, such as infrastructure costs, that are not included in this analysis, but should be considered in an analysis of the incentive programs. e. ACM Fortune presented the sales tax issue paper. It was stated that there was new information on the possible loss of sales tax from the movement of Acme Brick. ACM Fortune suggested a closed session during the Monday Council presentation to discuss the legal details. Mayor Brock had questions as to the current status of the incentives offered to Teasley Partners and Denton Crossing. Interim City Manager Martin suggested the information requested could be brought before the EDP Board. f. ACM Fortune presented the information on the Denton Municipal Electric (DME) franchise fees. It was noted at this time that a closed session would not be necessary, but would be reserved for the presentation of the electric rate stabilization information. Interim City Manager Martin pointed out that it was important to see the TXU rates as they compared to DME. Councilmember Mulroy agreed that it was important that we analyze the market, the rate stabilization fund decreases and the TMPA debt requirements, and then set parameters as to what is to be used in the future. Councilmember Mulroy suggested that the presentation be streamlined (or simplified) down to a few bullets and to not allow the volatility of the Energy Cost Adjustment (ECA) to detract from the overall picture being presented to Council. g. ACM Fortune presented the return on investment (ROI) issues report which was based on the utilities estimated growth. Councilmember Heggins requested an explanation of ROI. Councilmember Mulroy defined it as the measure of the return or profit given back to contributors/investors for allowing the organization to use their assets. It was then suggested that management articulate a non-technical definition and rational for usage of both ROI and franchise fees. h. ACM Fortune presented the issue paper on debt service. Mayor Brock asked if we had plans to adjust and make up for losses as they pertained to increased construction costs. One solution of lengthening the completion period from 5 to 10 years was discussed. Councilmember Mulroy stated that the public agreed to build the projects, and that increased costs would likely soften in the near future. Lengthening the completion period to 10 years may not be necessary. i. ACM Fortune presented the salary savings issue paper and management recommendation to allow departments to use savings for one-time expenditures. Councilmember Mulroy cautioned management that the strategy could lead to improper motivation and encouraged management to make sure the motivation was clear and not incentive for the wrong behavior. Additionally, ACM Fortune mentioned that salary increases were in the forecast. Councilmember Mulroy recommended that salary increases be considered up front. He noted that there is a high cost to hire and train replacement employees. He suggests consideration be given to cost of living adjustments and merit raises. In addition, step programs need to be analyzed as those programs generally have a higher percentage impact on the organization. He recommended that ACM Fortune articulate what step dollars represent. j. The Committee was very complimentary of the level and kind of information presented in the Committee meeting. 3. CLOSED MEETING - This portion of the meeting was forgone. 4. New Business - This item provides an opportunity for the Committee members to suggest items for future agendas or to request information for future meetings. - NO ACTION 5. Audit Updates - This section allows for brief updates to the Committee concerning activities of the Audit Department or prior Committee activities. A. Review the memo dated March 20, 2006, hold a discussion on the finance responses relating to information requested by the Audit Committee on February 21, 2006. In addition, Councilmember Mulroy wanted to know if management had a time frame for updating the Debt Policy to reflect current practices. ACM Fortune stated that they wanted to look at the policy as a whole. DISCUSSION: Councilmember Mulroy received clarification to ensure that management controls and procedures were adequately in place to promote proper accrual of expenditures. 6. Subsequent Meeting Schedule - Discuss subsequent meeting needs and schedules - A. Determine additional meetings needed and proposed schedule B. Currently scheduled Audit Committee meeting is set for Tuesday, May 2, 2006, 2:00 to 3:30 p.m. in the Legal-Accounting Conference Room, located at City Hall. ACTION: The Committee determined that bi-weekly meetings would be scheduled to accommodate review of the current financial information and any other items that Council directs to the Committee throughout the year. Councilmember Mulroy recommended that information concerning the financial forecast be presented to Council in its entirety, but the minutes should be attached to recap the discussions and directions given by the Audit Committee. Councilmember Mulroy further mentioned that a summary sheet should be utilized to state the main points/questions discussed and the resolution or action associated with those. The summary sheet should be put on the top of the packet with the minutes and supporting documentation behind it. The Committee/Council can reassess this process to determine its effectiveness and make adjustments if necessary. DISCUSSION: Additionally, ACM Fortune mentioned that he wanted to present the budget documents earlier in July, but was having trouble with the scheduling. Councilmember Mulroy suggested that Council will be much more informed with the preliminary opportunities to discuss budget issues as they arise. ACM Fortune stated that he would try to schedule a mid-July meeting to present the Proposed Budget and then possibly an hour a week to cover any recaps or changes. The meeting was adjourned at 4:53 p.m. iq of Finance Department * 215 E. McKinney * Denton, Texas 76201 Telephone (940) 349-8224 * DFW Metr• (972) 434-2259 * Fax (940) 349-7206 MEMORANDUM TO: Audit Committee FROM: Diana G. Ortiz 4t4l DATE: April 12, 2006 SUBJECT: Internal Audit Control At its meeting on February 14, 2006, the Audit Committee asked staff to explore the idea of an external review of the City's internal controls. As requested, staff conducted research with cities (i.e., Cities of Southlake, Fort Worth, Irving and Orleans Parish School Board) already undergoing similar reviews and received the following information. - Conducting an internal control review requires identification of scope (specific target areas like revenues, expenditures, whole organization, all functions); - Depending on its scope, the cost of an internal control review could range from several thousand dollars to several hundred-thousand dollars; and, - Conducting a thorough internal control review averages a period spanning from three to five years. Subsequent discussions were held with the Internal Auditor and the Utility Process/Quality Control Auditor to discuss the project and potential scope of a review of this nature. A review of the entire internal control system within the City may be beneficial. However, the time and cost to document and review each control would be a monumental undertaking at one time. For this reason, a plan of action was developed as follows. Financial personnel will: • Identify the City's top five areas of risk, based on City objectives and priorities, as well as impact to the organization. • Perform an assessment of risk in those areas to determine which area poses the biggest risk to the organization, therefore establishing priority. • Report back to the Audit Committee regarding the findings up to this point, propose a plan of action, and discuss funding sources. If recommended by the Audit Committee, the City will prepare a request for proposal for an agreed-upon procedures engagement in the areas identified through the above process. The engagement will seek an opinion on whether the internal controls around identified risk areas/ functions are appropriate, thorough, and significantly reduce the risk of financial misstatements caused by error or fraud and reduce the risk that the objectives of the City will not be accomplished. cc: Mike Rodgers 1 General Fund Long Range Financial Forecast ASSUMPTIONS: Revenues • No property tax rate increase except for CIP related $.02 of the potential $.04 tax increase for Debt Service in 2007-08. • No property tax appraisal or revenue caps. • No new property/sales tax contracts for Economic Development. • Property tax values @ 8% for years 2006-07 through 2008-09, and 6% for years 2009-10 and 2010-11. This is net of existing Economic Development agreements. • Sales tax increase @ 2.5% for all 5 years. This is net of existing 380 agreements. • Franchise Fees - City of Denton Water & Wastewater utilities, & Solid Waste based on revenue. Atmos Energy & CoServ Gas at 5%, Telecommunications (i.e. Verizon, AT&T, etc...) at -5%, TXU and CoServ Electric at 2%, and Cable (i.e. Charter, Grande, etc...) at -8%. • Electric franchise fee based on $.04 ECA. • No Franchise Fee or ROI payment from Drainage effective 2005-06 and no drainage fee payments from General Fund. • Return on Investment (ROI) based on utility revenue projections. • Increases for individual Fines, Fees, Licenses, Permits, and Misc. Revenues range from 2% to 5%. • Gas well revenues, net of fund balance requirement, are transferred from the General Fund (not Debt Service Fund due to statutory limitations) to a separate fund, except those associated with fees and inspections. Ezpenditures• • Pay Increases - there is 2%0 of total salaries set aside in 2006-07, in years 2007-08 through 2010-11 there is 4% of the total salaries set aside each year. Civil service STEP increases are also b>ldgeted. (No change from previous assumptions, reworded for clarity) • No additional funding for Public Safety Meet & Confer. 4/14/06 10:26 AM 2 • No funding for GASB 45 - post employment benefits other than pension. (Health insurance) • Position changes that are budgeted: 1 ACM position eliminated, 2 new positions in Fire effective 2005-06 (per City Council approval -1 recruiter & 1 firefighter), 1 position transferred from Water Engineering to Streets effective 2006-07. Five police positions in 2009-10, and Fire Medic Unit positions in 2010-11. • No funding for existing progression plans. • City's health insurance cost increase @ 3% for years 1-5. • TMRS - increase @ 7% for year 2006-07 and 6% for 2007-08. For years 2008- 2011 we are projected to be at the maximum rate. • Gas, oil & diesel increase @ 7% for 2006-07 and 2007-08 and @ 4% for the remaining three years. • Electric increase @11% over the current year estimate for 2006-07 and 5% for the remaining four years. • Water/Wastewater increase @ 5% over the current year estimate for 2006- 07, and 2% for remaining four years. • Solid Waste increase @ 17% increase over the current year estimate, and 3% for the remaining four years. • Natural gas increase @ 7% over the current year estimate for 2006-07, 7% for 2007-08, and 4% for the remaining three years. • Expenditures include O&M and positions associated with the 2004-2009 CIP. (GO & CO) • Scheduled vehicle replacements only. • 2006-07 includes the second year cost of Compensation & Class Study - $100,000. (First year cost, $100,000 was included in the 2005-06 budget and is included in the total Operations line item.) 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N M O N r to Cl Cl O C6 0 C O co NONO r 01 r N a 69. v~ yr EA to 6% M M co rto 000 (V tD O tD N r V Cl) to cm V) co ty T T r n r M O to d' I- ao co I- 0 n O Di r o O n n T T N a to V! 4Pr 6s}} w 6% to to N i::- tt) tD D1 :3 O M ~ ~ r O t0 Cfl n N O co m LO m 5;- w O trj M O D1 O O O n n r r N V} V► fR fPr <fl ER CD CD N N t co D O N ) to m O O M r G N d co r O O M M Im U) 't 4 I- w co co O E 1 a, O; rn O U) N W GN GH N} V? fA b4 J Q ~ m Z .J W m w LL a C) LL m w N r a U -CL z o r CL z Q Q Z C7 m N C o rn W Z Z Cl) N c !C `t K m s p W Z > > W° 0 F- M W LL 0 PDUUM DESCRIPTION Unreserved or undesignated general fund balance stated as a percent of total general operating funds is one of the most utilized and analyzed key ratios of determining financial condition for local governments. Accumulated surpluses from prior years provides a means that allows governments to meet current cash flow needs, temporary revenue shortfalls, or unexpected expenditure demands without suddenly adjusting tax rates or cutting expenditures during the budget year. Maintaining a fiscally conservative fund balance can also help local government avoid short-term borrowing by accumulating funds for capital purchases, thereby saving interest costs. The need for reserves is determined primarily by the degree of risk associated with revenues and revenue sources, and by the likelihood of major contingencies and the amount of funds required to respond to them. Some cities, including Addison, Grapevine and San Marcos, receive a significant portion of their total general fund revenues from sales tax that typically represents volatility due to its economic nature. These cities, however, are able to weather sales tax volatility due to their strong historical financial performance along with a high, unreserved general fund balance. The size of a local government's fund balance can affect its ability to withstand financial emergencies. Fund balances may be established at a level sufficient enough to provide operating cash for 30 or 60 days to pay its bills, in case of an unforeseen event. Utilizing reserves to sustain operating deficits can be damaging in two ways: first, the government is left with fewer resources to cope with a financial emergency; second, relying on reserves may affect the governments credit rating, because the credit rating firms examine the history of fund balances. The total fund balance amount in the City's annual financial statement may not be available for appropriation. Nonspecific reserves are usually carried on the books as an unreserved fund balance in the general operating fund, and, it is available for appropriation. TREND ANALYSIS The following information depicts the historical level of general fund balances as a percent of expenditures as well as the budgeted level for 2005-06. The information also demonstrates that a 15 percent fund balance can be attained by 2007-08. 1 Fund Balance 12,000 10,000 8,000 E 6,000 4,000 m 0 2,000 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Dollars 9,571,700 8,033,092 8,442,942 9,504,988 9,718,368 9,789,068 10,713,681 11,612,180 Percentage 18.20% 13.64% 13.64% 14.68% 13.98% 14.00% 14.50% 15.00% ISSUES In 2004, the City Council established a goal of reaching a 15 percent fund balance. This goal will be attained in 2007-08 by increasing the fund balance 0.05 percent annually. A monetary savings benefit in interest costs for debt as it relates to fund balance may be quantified with a comparison of governments bond credit ratings. Governments rated AA will generally incur approximately $25,000 less in interest costs than a government rated A per million dollars of tax-supported debt. For example, the City of Denton's FY2006 certificates of obligation totaling $10 million would expend $250,000 more in interest if the city held a lower bond rating of A. In 2002, FitchRatings published a document dedicated solely to identifying best financial management practices for government issuers. Fund Balance Reserve Policy/Working Capital Reserves was their highest ranked practice. Fiscal discipline and strong management practices have significantly benefited credits. Management practices and policies can add stability to weak credits, maximizing their credit rating potential. Conversely, weak financial management can negatively affect even the strongest economies and local government structures. In extreme cases, poor management can cause rating downgrades to below investment grade, bankruptcy and missed debt service payments. Maintaining an operating reserve, or rainy day fund, is perhaps the most effective practice an issuer can use to enhance its credit rating. It is also the most frequently implemented practice adopted by both large and small local government issuers. 2 CURRENT PRACTICES Over the years, the Denton City Council has followed a policy of maintaining a general fund balance for unforeseen emergencies. In order to place the City in a more favorable position, the 1997-98 fund balance policy level was increased from 10 percent to 12.5 percent. In 1999-00, the percentage was increased to 13 percent. Furthermore, the 2005-06 adopted budget includes a 14 percent level with a 15 percent target in the 2007-08 forecasted budget. Attachment A provides a comparison of fund balance target levels for various cities in the DFW metroplex. The target levels range from Dallas's five percent to Addison's 25 percent. Moody's 2005 Local Government National Medians is published each year and provides some national statistics for government entities of different population sizes. Median levels represent the most commonly held percent by a group of cities. For U.S. Cities rated AAA (the highest credit rating possible) with populations between 100,000 and 500,000, the undesignated general fund balance percent is 12.20 percent and the total general fund balance is 24.60 percent. POLICY RECOMMENDATIONS Maintain the City's policy to establish a reserve at 15 percent of the general operating fund, which equates to 55 days of working capital. Continue to increase the fund balance by 0.05 percent annually until 15 percent is attained. 3 Attachment A Fund Balance Comparisons Fund Balance Target City Level Source Addison 25.0% FY 2006 Budget - Financial Policies, Appendix B Farmers Branch 25.0% FY 2006 Budget - P 1-30 "25% Operating" Hurst 25.0% FY 2006 Budget - Pg 97 "90 Days" McKinney 25.0% FY 2006 Budget - Pg 175 "90 Days Operating Revenues" Bedford 25.0% FY 2006 Budget - Pg 33 Irving 24.0% FY 2006 Budget - Pg 43 Duncanville 16.7% FY 2006 Budget - P 11 "60 Days Expenditures" Allen 16.4% FY 2006 Budget - P 31 "60 Days Operating" Carrollton 16.4% FY 2006 Budget - P 41 "60 Days Operating" DeSoto 16.4% FY 2006 Budget - P 40 "60 Days Expenditures" Richardson 16.4% FY 2006 Budget - P 6 "60 Days" Flower Mound 15.0% FY 2006 Budget - Pg 555 "15% Annual Expenditures" Lancaster 15.0% FY 2005 Budget - Pg 243 "10% Min., 25% Target, 25% Max." Lewisville 15.0% FY 2006 Budget - Pg 44 Financial Policies Mesquite 15.0% FY 2006 Budget - P 29 Denton 14.0% Coppell 10.0% FY 2006 Budget - P 30 Fort Worth 10.0% FY 2006 Budget - Pg C-10 "10% of O&M" Rowlett 10.0% FY 2006 Budget - Pg 25 Arlington 8.3% FY 2006 Budget - Pg 261 "1/12th Expenditures" Euless 8.3% FY 2006 Budget - P 30 "30 Days Expenditures" Garland 8.3% FY 2006 Budget - Budget Policies Section Plano 8.3% FY 2006 Budget - P 470 Dallas 5.0% FY 2006 Budget - P 494 4 REVENUE DESCRIPTION Following authorization by the Texas Legislature, on September 7, 1999, City Council approved Ordinance #99-289 establishing a municipal court technology fund. This fund is allowed under Article 102.0172 of the Code of Criminal Procedure. Provisions of the ordinance include that "the fund may be maintained in an interest bearing account and may be maintained in the general revenue account." The fee is $4.00 and is required of defendants convicted of a misdemeanor offense. Use of these accumulated fees may be used only to finance the purchase of or maintenance of technological enhancements for a municipal court or municipal court of record, including: computer systems, computer networks, computer hardware, computer software, imaging systems, electronic kiosks, electronic ticket writers or docket management systems. The fee became effective upon passage and was scheduled to expire September 1, 2005 but was re-approved and extended indefinitely. HISTORICAL TREND ANALYSIS Collections from the Municipal Court Technology Fee have remained relatively stable over the last four years. While collections grew 4.5 percent from FY2002 to FY2003, they declined by 9.1 percent from FY2003 to FY2004. Collections from FY2004 to FY2005 once again grew 4.3 percent, bringing them just $894 short of the FY2002 level. Municipal Court Technology Fee 120 115 y 110 L ~ y 105 o = ° 100 95 90 2001-02 2002-03 2003-04 2004-05 2005-06 Year 1 ISSUES These fees are going to fluctuate with the activity level in Municipal Court. Currently, these fees are not covering the full cost of providing technology to Municipal Court. See attached chart. CURRENT PRACTICES Currently, these fees are transferred to the Technology Services Fund to cover direct costs itemized in Technology Services' cost allocation for Municipal Court. POLICY RECOMMENDATION Staff recommends that the City of Denton continue to utilize these funds for technology needs in Municipal Court as prescribed by state law. 2 Municipal Court Technology Fee Fiscal Yr Revenues FYE Ending Collected Expenditures* Balance 1998-99** $ 1,923 $ (66,915) $ (64,992) 1999-00 78,988 (90,617) (11,629) 2000-01 102,176 (148,890) (46,714) 2001-02 110,826 (108,733) 2,093 2002-03 115,871 (112,626) 3,245 2003-04 106,165 (109,803) (3,638) 2004-05 109,947 (137,520) (27,573) Notes: * Expenditures based on Technology Services Fund direct cost allocation for Municipal Court. Technology Fee began in September, 1999. 3 REVENUE DESCRIPTION Following authorization by the Texas Legislature, on September 12, 1995, City Council approved Ordinance #95-183 creating a municipal court building security fund. This fund is allowed under Article 102.017 of the Code of Criminal Procedure. Provisions of the ordinance include "That any person convicted in a trial in the City of Denton Municipal Court No. 1 or any other City of Denton Municipal Court which may hereafter be created, shall pay a three dollar security fee as a cost of the court to be collected by the Clerk of the Court." The $3.00 fee is required of defendants convicted of a misdemeanor offense. These accumulated fees may be used only to finance items for the purpose of providing security services for buildings housing a district, county, justice, or municipal court. HISTORICAL TREND ANALYSIS Collections from the Municipal Court Building Security Fee have remained relatively stable over the last four years. While collections grew 3.3 percent from FY2002 to FY2003, they declined by 9.3 percent from FY2003 to FY2004. Collections from FY2004 to FY2005 once again grew 4.3 percent, bringing them just $1,946 short of the FY2002 level. Municipal Court Building Security Fee 90 " 85 N ~ L C _ N 80 O O ❑ t 75 70 2001-02 2002-03 2003-04 2004-05 2005-06 Year 1 ISSUES These fees are going to fluctuate with the activity level in Municipal Court. The average funding required to pay for a police officer assigned to bailiff duties in Municipal Court is over $90,000 per year for salary, benefits and equipment. Currently, the Municipal Court Building Security Fee is not covering the full cost of the bailiff. Any other costs related to security are being paid by the General Fund. CURRENT PRACTICES The $3.00 fee is required of defendants convicted of a misdemeanor offense. Currently, these fees are collected in the Municipal Court Security Fund. The amount collected is transferred to the General Fund to offset the cost of the Court Bailiff. POLICY RECOMMENDATION Staff recommends that the City of Denton continue to utilize these funds for building security needs in Municipal Court as authorized by state law. 2 Municipal Court Building Security Fee Review Fiscal Yr Revenues Expenditures FYE Ending Collected Bailiffs Balance 2001-2002 84,412 (88,869) (4,457) 2002-2003 87,190 (89,683) (2,493) 2003-2004 79,660 (95,214) (15,554) 2004-2005 82,475 (98,546) (16,071) 3 PDUUM DESCRIPTION Utility expenses for the General Fund are handled in two ways. Facility Management is responsible for all of the utilities associated with city buildings that house more than one department. Buildings that house either a single department or a group of departments that belong to a single fund are responsible for their associated utility costs. The exception to this is the Police Department; Facility Management pays all of their utility costs. Included in the utility costs are electric, water, wastewater, solid waste, and natural gas. Street lighting is an additional budgeted expense in the General Fund. Other buildings that the city pays the utility costs for are the Visual Arts building, which is carried in the Facility Management budget, and the Campus Theater, which is in the Finance Miscellaneous budget. Facility Management also pays the water bill for the Day Labor Site. HISTORICAL TREND ANALYSIS Years 2001-05 reflect the actual costs, 2005-06 is an estimate for the current year, and years 2006-07 through 2010-11 are projected in the long-range forecast. Electric service is the biggest utility expense in the General Fund, and fluctuations in the Energy Cost Adjustment (ECA) have a greater impact then fluctuations in the other utility services. Street Lighting is the largest individual electric expense. Over the five-year forecast we are expecting to see a 21.55 percent increase in the cost of electric service. Not all of this increase is due to increase in the energy cost. New CIP projects that have been completed and brought on line, such as the North Branch Library and Central Fire Station, are also increasing utility costs. Other projects that will be completed in the next five years include the expansion of the South Branch Library, Fire Station #7, and the Public Safety Training facility. The associated O&M costs for these projects are carried in the CIP O&M portion of the forecast starting at line 64. For the five- year forecast, a 12 percent increase over the estimate is assumed for electric in 2006-07 and a five percent increase over budget for 2007-08 through 2010-11. For water and wastewater, a five percent increase over the estimate is assumed for 2006-07 and a two percent increase over budget for the remaining four years. For solid waste, a 17 percent increase over the estimate is assumed for 2006-07 and a three percent increase for the remaining four years of the forecast. For natural gas, a seven percent increase over the estimate is assumed for 2006- 07, a seven percent increase over budget for 2008-09, and a four percent increase over budget for the three remaining years. 1 Electric y 3,500 v C y 3,000 0 2,500 2,000 1,500 1,000 500 2001-02 2003-04 2005-06 2007-08 2009-10 -Water/WW Solid Waste - - Natural Gas 350 300 _-r - ~ 250 i 200 150 , i 100 50 2001-02 2003-04 2005-06 2007-08 2009-10 ISSUES The major issue with utilities is trying to budget for electric usage and the ECA rate fluctuation. In previous years fluctuation and growth in the electric rates was minimal. The ECA rate has increased from $.02 just a few years ago to as high as $.08 this year. Another issue is budgeting for street lighting. Street lighting is the largest electric utility expense. Streetlight charges are based on the wattage of the light, not metered usage. The rate covers the cost of the electric usage plus an amount for maintenance of the light and includes an ECA component. The City currently has approximately 10,100 streetlights in service. From 2002 through the end of 2005, 867 streetlights were added, an averages of approximately 200 additional streetlights annually. 2 Increases in the other utility costs do not have the same impact as electric increases have in the General Fund. In the current year, electric represents 84 percent of the total budget for utilities. 3,000 2,500 O t H 2,000 2004-05 Budget 2004-05 Actuals 1,500 ❑ 2005-06 Budget 2005-06 Estimate 1,000 2006-07 Budget 500 Electric W/WW, SW, Natural Gas CURRENT PRACTICES Historically, departments were responsible for budgeting their utility costs and covering any overruns in expenditures within their budget; in order to receive additional funding, departments would submit supplemental funding requests. When no additional funding was available, the departments had to cover the increases in their existing budget. In an effort to assist departments with budgeting for this expense, the Electric Marketing department is assisting in trying to more accurately project what electric costs will be. In working with the Electric Marketing department and doing a monthly analysis on utility expenses, the FY2006 General Fund electric expenses are projected to be over budget by $444,000. A budget amendment to Council to increase the funding for electric utility expenditures will be presented to City Council in the near future. The revenue that will offset this expense is the increased franchise fee received from DME. The FY2006 budget for electric utilities was increased 26 percent over the FY2005 budget in order to address the increases experienced in recent years. At that time the ECA rate was not expected to go as high as $.08. For the 2006-07 budget an 11 perent increase is projected over the current estimate for 2005-06. For the remaining four years of the forecast, a five percent increase over the prior year budget is assumed. Utilities costs for new buildings such as Fire Station #7, the South Branch Library expansion, and the Public Safety Training facility are budgeted in the CIP O&M portion of the long-range forecast. These are the only additional buildings that have been included in the long-range forecast at this time. Increases in other utility expenses do not have the same impact on the budget as electric utilities because the combined dollar value is only approximately $500,000. Continued 3 analysis will enable more accurate budgeting for these expenses and help departments spend their funding on programs instead of utility costs. POLICY RECOMMENDATIONS 1. Continue to work with Electric Marketing and the Street department to find ways to manage streetlight expenses. 2. Continue to work with Electric Marketing in monitoring and forecasting the electric utility accounts. 3. Budget 11 percent over the current year's estimate for electric for 2006-07, and five percent for the remaining four years. 4. Prepare a budget amendment for additional funding for electric utility expenditures in the General Fund. 5. Budget five percent over the current year's estimate for water and wastewater for 2006- 07, and two percent for the remaining four years. 6. Budget 17 percent over the current year's estimate for solid waste for 2006-07, and three percent for the remaining four years. 7. Budget seven percent over the current year's estimate for natural gas for 2006-07, seven percent for 2007-08, and four percent for the remaining three years. 4 Proposed Projected 2005-06 2006-07 2005-06 2005-06 YTD 2004-05 2004-05 Acct No. . Business Unit Budget Estimate Budget Actuals Budget Actuals 105500.7934 Airport 41,345 37,262 30,200 10,946 12,500 18,84< 160099.7722 Campus Theater 55,599 50,108 40,000 23,283 40,000 40,67E 230001.7934 Fac. Mgmt 644,958 581,259 471,103 277,890 413,053 484,97E 301001.7934 Emily Fowler 66,575 60,000 50,000 24,904 17,568 16,57<, 302001.7934 South Branch 37,922 34,177 27,700 11,590.84 27,691 24,52( 303001.7934 North Branch 95,833 86,368 70,000 35,210 75,315 68,57< 320001.7934 Fire Admin 3,217 2,899 2,350 1,344 2,350 2,26, 320100.7934 Fire Oper 138,410 124,740 101,100 40,720 75,875 98,51' 340001.7934 Animal Svcs 17,113 15,423 12,500 8,738 10,000 15,18 352001.7934 Traffic 8,214 7,403 6,000 4,818 5,600 7,00E 353001.7934 Streets 8,214 7,403 6,000 3,127 2,500 2,75E 355001.0000 Street Lighting 68,700 68,700 68,700 34,350 68,700 74,42; 355001.7934 Street Lighting 994,332 896,128 726,300 445,647 536,300 725,49: 401130.7934 LS-Civic Center 42,819 38,590 31,277 7,193 12,400 4,63,- 401140.7934 LS-Denia 43,926 39,587 32,085 12,936 25,083 32,81; 401150.7934 LS-Senior Center 40,236 36,262 29,390 16,278 23,500 31,52 401180.7934 LS-MLK 67,659 60,977 49,421 16,119 34,500 57,84E 401190.7934 LS-North Lakes 51,687 46,582 37,754 26,196 26,350 39,20E 401200.7934 LS-Goldfield Tennis 10,268 9,254 7,500 4,539 6,530 7,83,r 402110.7934 PM-Athletics 100,349 90,438 73,299 15,215 70,623 30,37 130.7934 PM-Park Maint 42;851 38,619 31,300 16,597 31,300 37,48E :140.7934 PM-Landscape 83,975 75,682 61,339 28,733 35,000 54,83E 402150.7934 KDB 6,918 6,235 5,053 2,912 5,012 5,76,- YTD totals 2,671,120 2,414,096 1,970,371 1,069,287 1,557,750 1,882,13( % budget to actual 21 $ over/(under) prior yr budget 700,749 412,621 increase over prior yr budget 36% 26% increase FY2006-07 over estimate 11% , 4/141200610:52 AM 5 Proposed Projected 2005-06 2006-07 2005-06 2005-06 YTD 2004-05 2004-05 Acct No. Business Unit Budget Estimate Budget Actuals Budget Actuals 105550.7934 Airport 2,056 1,958 2,500 770.53 2,100 1,764 230001.7934 Fac. Mgmt 37,523 35,736 32,571 15,188.23 32,571 32,192 301001.7934 Emily Fowler 2,967 2,825 3,150 706.36 907 544 302001.7934 South Branch 2,919 2,780 2,800 1,080.23 2,500 2,505 303001.7934 North Branch 10,126 9,644 2,300 2,978.88 9,044 8,687 320100.7934 Fire Oper 14,394 13,709 11,250 5,222.59 13,440 12,349 340001.7934 Animal Svcs 4,601 4,382 3,500 2,268.27 2,500 3,947 353001.7934 Streets 8,074 7,689 10,000 3,378.65 4,000 6,927 401130.7934 LS-Civic Center 1,011 963 3,200 831.96 3,200 867 401140.7934 LS-Denia 1,507 1,435 1,700 465.51 1,700 1,293 401150.7934 LS-Senior Center 2,552 2,430 1,961 1,061.68 1,600 2,189 401180.7934 LS-MLK 2,930 2,790 2,800 947.61 2,000 2,514 401190.7934 LS-North Lakes 2,697 2,569 2,747 1,479.13 2,747 2,314 401200.7934 LS-Goldfield Tennis 1,048 998 900 409.04 700 899 402110.7934 PM-Athletics 93,685 89,224 63,152 53,056.83 63,152 80,375 402130.7934 PM-Park Maint 55,985 53,319 68,133 26,059.78 68,133 48,031 402140.7934 PM-Landscape 35,852 34,145 28,000 '16,605.96 22,000 30,758 402150.7934 KDB 1,817 1,731 1,250 933.61 1,217 1,559 YTD totals 279,411 266,105 241,914 133,444.85 233,511 239,7'c,' % budget to actual 3% $ over/(under) prior yr budget 37,497 8,403 increase over prior yr budget 16% 4% increase FY2006-07 over estimate 5% 4/14/200610:53 AM 6 -Solid Waste Proposed Projected 2005-06 2006-07 2005-06 2005-06 YTD 2004-05 2004-05 Acct No. Business Unit Budget Estimate Budget Actuals Budget Actuals 105500.7934 Airport 2,321 1,980 2,000 715 1,950 2,004 230001.7934 Fac. Mgmt 15,047 12,838 7,791 5,813 7,791 12,330 301001.7934 Emily Fowler 1,904 1,624 750 676 352 283 302001.7934 South Branch 655 559 1,000 220 800 412 303001.7934 North Branch 2,185 1,865 1,050 796 2,630 1,024 320001.7934 Fire Admin 117 100 500 - 1,000 113 320100.7934 Fire Oper 3,568 3,044 4,800 2,266 4,761 4,756 340001.7934 Animal Svcs 1,343 1,146 1,500 555 1,500 1,064 352001.7934 Traffic 3,484 2,972 705 1,454 1,000 2,700 353001.7934 Streets 515 439 2,141 7,936 4,000 494 401130.7934 LS-Civic Center 2,530 2,159 1,800 970 950 670 401140.7934 LS-Denis 882 753 786 295 786 638 401150.7934 LS-Senior Center 2,113 1,803 950 814 950 1,235 401180.7934 LS-MLK 2,312 1,973 2,200 745 1,300 2,043 401190.7934 LS-North Lakes 1,561 1,332 787 741 787 941 "'2110.7934 PM-Athletics 9,004 7,682 8,500 3,204 6,000 8,637 2130.7934 PM-Park Maint 21,263 18,142 16,000 4,001 16,000 20,398 402140.7934 PM-Landscape 1,759 1,501 1,000 721 - 1,281 402150.7934 KDB 996 850 620 442 350 679 YTD totals 73,559 62,762 54,880 32,365 52,907 61,703 % budget to actual 170, $ over/(under) prior yr budget 18,679 1,973 % increase over prior yr budget 34% 4% % increase FY2006-07 over estimate 17% J. 4/141200610:53 AM 7 Proposed Projected 2005-06 2006-07 2005-06 2005-06 YTD 2004-05 2004-05 Acct No. Business Unit Budget Estimate Budget Actuals Budget Actuals 230001.7932 Fac. Mgmt 67,281 62,879 60,275 51,938 60,275 40,08 303001.7932 North Branch 6,882 6,431 6,480 2,695 15,290 4,10 320001.7932 Fire Admin 3,551 3,319 3,500 1,896 - 2,11 320100.7932 Fire Oper 26,981 25,216 18,405 12,150 18,440 16,07• 340001.7932 Animal Svcs 31,384 29,331 20,000 19,727 20,000 18,69 352001.7932 Traffic 2,234 2,088 1,500 897 1,250 1,33 353001.7932 Streets 1,126 1,052 1,200 632 500 67 401180.7932 LS-Civic Center 9,865 9,220 7,040 5,870 7,040 5,87 401190.7932 LS-Denia 6,355 5,940 3,880 4,482 1,750 3,78 402110.7932 PM-Athletics 2,369 2,214 1,000 368 1,000 1,41 402120.7932 PM - Trades 1,013 947 947 402150.7932 KDB 2,061 1,927 1,400 1,173 2,565 1,22 YTD totals 160,089 149,616 124,680 102,775 128,110 95,37 % budget to actual -26 $ over/(under) prior yr budget 35,409 (3,430) % increase over prior yr budget 28% -3% % increase FY2006-07 over estimate 7% a u. 4/14/200610:53 AM 8 PDUUM DESCRIPTION Gas, oil and diesel are budgeted by department. City departments currently purchase their fuel from Fleet Services, which is an internal service fund. This is done to in an effort to reduce the cost of fuel by buying in bulk. There are currently two fuel islands for city vehicles, one is located at the service center and the other is located at the new Solid Waste facility. Fuel is an expense that in previous years was not automatically adjusted with the budget. In years where additional funding was available departmental budgets were adjusted if the department requested supplemental funding. In years where additional funding was not available departments were expected to cover the increased cost. HISTORICAL TREND ANALYSIS Years 2001-05 are the actual costs, 2005-06 is an estimate for the current year, and years 2006 through 2010 are the projected costs in the long-range forecast. The five-year forecast assumes a seven percent increase for 2006-07 and 2007-08 and for 2008-09 through 2010-11 the increase is projected to be four percent. Over this 10-year period we are expecting to see a 156 percent increase in fuel expenditures. Not all of this increase is due to increase in the cost of fuel, there is a potion of this increase that is due to increases in the number of fleet vehicles. Gas, Oil & Diesel 1,000 C N 800 O 600 O 400 E N 200 O 2001-02 2003-04 2005-06 2007-08 2009-10 Year 1 ISSUES Fuel costs have gone up drastically in the last year and departments are having a harder time covering the increases in their operating budgets. It is difficult to predict what the cost of fuel is going to be in the future and what our future needs are going to be. There are several factors responsible for the increases we are experiencing, one is the cost of fuel, there is an increase in the number of vehicles, and another is the increase in the service area. CURRENT PRACTICES Departments currently purchase fuel from Fleet Services at a bulk rate price with a $0.24 markup to cover the overhead associated with the fuel island operation. The chart below shows an average year-to-date cost comparison for fuel. Due to the increases in the cost of fuel, Fleet Services needs to request a current year budget amendment for an additional $675,000 in spending authority to cover the purchase of fuel for the rest of the year. At this time there will not be any other amendments for the departmental fuel budgets. General Fund is estimating to spend 100 percent of their budget even though historically there were savings. Budgeting 100 percent will help cover the additional $176,000 that is currently estimated to be spent for fuel. In the past the cost of fuel was something that the departments were responsible for covering in their budget. There have been small increases over the past years to departments' fuel expenditure lines. In an effort to more accurately estimate and forecast this expense the city staff is monitoring it on a monthly basis. FUEL COST COMPARISON Fleet Services Dept Avg. YTD Retail Avg. Avg. YTD Cost Cost YTD Cost FY2005-06 FY2005-06 Diesel $ 2.19 $ 2.43 $ 2.70 Unleaded $ 2.05 $ 2.29 $ 2.82 Biodiesel $ 1.30 $ 1.54 The attachment shows the actual fuel costs by department for 2004-05, what has been spent through February 2006, a projected estimate for the current year, and a projection for the subsequent year based on a seven percent increase. The 2005-06 budget for fuel was increased by 23 percent over the 2004-05 budget. The 2004-05 actuals were 39 percent over the 2004-05 budget, which means that our 2005-06 budget for fuel is below what was actually spent for fuel in 2004-05. The proposed increase for fuel for 2006-07 is 48 percent more than the 2005-06 fuel budget, and is seven percent more than the 2005-06 estimate for fuel. This analysis is being done in an effort to help departments budget for the expense and to be able to project the expense in the long-range forecast. 2 POLICY RECOMMENDATIONS 1. Forecast a seven percent increase in years 2006-07 and 2007-08, and a four percent increase for the remaining three years. 2. Present a budget amendment for the Fleet Services Fund to enable them to purchase the needed fuel for the balance of the fiscal year. 3 i - Gid, Proposed Projected 2005-06 2006-07 2005-06 2005-06 YTD 2004-05 2004-05 Acct No. Business Unit Budget Estimate Budget Actuals Budget Actuals 105500.7842 Airport 3,026 2,828 1,700 1,677 1,658 2,25 106001.7842 PIO 789 737 - - 185 59 150001.7842 Human Resources 1,552 1,451 - 53 350 1,17 220100.7842 Building Inspections 13,495 12,612 7,840 5,577 7,840 10,25 230001.7842 Fac. Mgmt 15,723 14,695 6,000 5,304 6,000 11,94 303001.7842 Library 1,880 1,757 1,500 1,089 900 1,42 310100.7842 Police Oper. 232,445 217,239 168,500 88,591 135,550 176,54 310200.7842 Police 27,926 26,099 14,000 10,977 5,000 21,21 310300.7842 Police 22,260 20,804 5,000 6,054 5,000 16,90 320001.7842 Fire Admin 12,616 11,791 9,000 6,608 6,500 9,58 320100.7842 Fire Oper 98,475 92,033 60,000 43,710 48,000 74,79 320200.7842 Fire Prevention 12,393 11,582 5,500 5,757 4,500 9,41 330001.7842 Code Enforcement 7,463 6,975 3,500 2,055 3,500 5,66 340001.7842 Animal Svcs 13,378 12,503 12,000 5,044 12,000 10,16 352001.7842 Traffic 19,903 18,601 13,000 7,798 8,000 15,11 353001.7842 Streets 93,551 87,431 83,000 38,240 70,000 71,05 400001.7842 Park Admin 3,474 3,247 1,100 901 1,825 401130.7842 Leisure Svc 17,746 16,585 8,233 3,774 7,623 402110.7842 PM-Athletics 20,437 19,100 13,000 6,320 9,650 1a,o2 402120.7842 PM-Trades 16,123 15,068 11,136 5,406 6,136 12,24 402130.7934 PM-Park Maint 34,617 32,352 28,735 22,167 24,172 26,29 402140.7934 PM-Landscape 9,495 8,874 4,830 3,843 6,900 7,21 YTD totals 678,767 634,362 457,574 270,946 371,289 515,53 % budget to actual 39 $ over/(under) prioryr budget 221,193 86,285 % increase over prior yr budget 48% 23% % increase FY2006-07 over estimate 7% 4/14/200610:54 AM 4 REVENUE DESCRIPTION Fines and Fees are composed of public safety related enforcement activity (i.e., police department tickets for moving violations, animal control fines, fire department fines, etc...). The purposes of these fines and fees are to gain compliance from violators, increase awareness and reduce repeat violations. Revenue generation is the result of non-compliance and not the primary purpose. HISTORICAL TREND ANALYSIS The estimated amount for FY 2005-06 is $4,138,800. This amount represents an increase of 4.5 percent ($179,322) over the prior fiscal year's actual amount of $3,959,478. The average growth over the last four years has been 6.5 percent. Fines and Fees History w 5000000 v 4000000 N 0 3000000 t 2000000 N m 1000000 O 0 2001-02 2002-03 2003-04 2004-05 2005-06 Year ISSUES Fines and fees are greatly impacted by enforcement efforts, compliance or non-compliance by individuals, and individuals' ability to pay. The collection rate for fines and fees fluctuates with trends in the economy and individual's disposable income. Non-payment of fines and fees results in collection efforts by the City's contracted collection agency, issuance of property liens or issuance of police warrants. The largest source of fines comes from traffic citations. Although there is a direct relationship between the number of citations issued and revenue, there are other factors that impact whether or not a specific citation ever results in revenue to the City. Some of those factors include: changes in federal, state and local statutes, judgments made in the City's Municipal Court, changes in Police Department policies and procedures, and collection l efforts. For example, in FY 2004-05 the City's Police Department provided more emphasis on DWI enforcement. While officers issued numerous DWI-related citations, these citations are handled through the local District Court and not the City's Municipal Courts. Consequently, the City received no revenues from those citations. Beginning with FY 2006-07, the City anticipates that revenues from fines and fees will continue to increase at an annual growth rate of 4.5 percent. Fines and Fees Projections 5400000 5200000 5000000 4800000 4600000 4400000 m 4200000 0 4000000 3800000 2006-07 2007-08 2008-09 2009-10 2010-11 Year CURRENT PRACTICES In recent years, revenue forecasting has been based on the City's population growth, about five percent per year. In the case of public safety fines, revenue forecasting is independent of their input in order to maintain compliance with statutes that forbid ticket quotas. However, Municipal Court and Finance personnel do take into account such things as added police officers, changes in police tactics/ operations and improved collection processes when forecasting future revenues. Changes in statutory laws, as set by legislation and interpreted by the Municipal Court judge, are also factored into revenue forecasting. Beginning in FY 2005-06, the City's Municipal Court implemented a new process to file outstanding citation warrants. This new process involves the use of an electronic imaging system, Laserfiche, which enables a Municipal Court clerk to efficiently sign, file and seal affidavits of probable cause. After the clerk verbally swearing as to the authenticity of the affidavit, the Municipal Court judge then finds, if appropriate, probable cause for a warrant. This new process takes less than a week. In contrast, the "old" manual process could take more than a month, depending on the availability of the Municipal Court Judge. By improving the timeliness of this process and routine warrant "round-ups," the City also increases the timeliness and/or likelihood that defendants will pay outstanding citations. 2 POLICY RECOMMENDATIONS The following assumptions have been made in the current five-year forecast: 1. The forecast assumes fines and fees will continue to increase at an annual growth rate of 4.5 percent. The growth rate of specific individual fines and fees range from two to five percent. 2. No revenue impact from new police officers. 3. Implementation of new collection program as required by state statute. 3 N m N M N lfJ m V lfJ N M lfJ r M~ I~ O lfJ O N N M O M (O m M O I~ lfJ l° O M N N M O I~ lfJ M a N N lfJ r lfJ O M M O lfJ M N O M lfJ O r r M M V p d M M (O M I~ r M r~ r O ~ O N M~ CO' ~ O V<<` ~ lfJ O M~ m M M V m c O ~ p M~ ~ N N N Q 0 ~ N ~ N N a N ~ I~ N V m O N N r r M m O O M~~~ M~~ N N O lfJ lfJ O r M O M r m M O O O M~ r M O N N O M lfJ r N lfJ lfJ O (O O lfJ V y 0 (O O V L6 M M r lfJ V M I~ lfJ m O N r N W U 7 M V`~ V ~ l° O ~ 00 N M M N N T O O V3 N ~ O d N O I~ N m M V M I~ N lfJ O V N N~ I~ N T O lfJ r V I~ M M M m O M V (V Oc m M M 0 N m M O<< O N V M M 0 I~ lfJ Mr lfJ r M T' ~ M I~ O M w r M M O O <fJ O M m ~ M W ~ ~ M O ~ O I~ M V <fJ ~fJ N A M I~ r N r M O Ova ~ O d N m N M N N (MO V o ~~fJ N V Na (O~ a Oo a M V N M M O V m N M (O V ❑ O lfJ r V N (O m M N (O m V V N V M V I~ T' M O (p O V lfJ V M I~ r N U^ N M N N O N O Ova ~ O d N O O O O (O O l° 0 0 0 lfJ O (C M O N M O O N O L 0 l° 0 l° O N M (O lfJ O lfJ O M(O V MlfJ O V I~ V LfJ r r N N D I~ N M M m M ~fJ OJ N N N (O N I~ V M (O V V T' V O V V M O I~ r r O O N ° o N I~ N N O M ~ O v3 ~ V O M d N U) W zz w W a. O O O O M O O O O O O O O O O O O O O O W N O O O M (O M ~fJ M (O N N (O 0 0 V lfJ M lfJ lfJ V CO' Z ❑ N O, M M O M V M <fJ O I~ O r m M O V1 F E In << < (O N O O LL W W N W ❑LL o K p w a }z❑ EL z l° O O O lfJ M O O N N lfJ O V lfJ M O O M W U Q N M (O M lfJ V I N M O(C 0 l° q Ml° lfJ lfJ N M O M O 'C J M lfJ r N OlfJ lfJ V O N (O ~ N lfJ M - V Q O N Q O M N V N ~fJ M~ (O V m~ V ~fJ V (O m T' U C N m N M lfJ I m O O lfJ M O T a' U O~ M O QN o N 2 (O O M M M M O I~ V m O m M V (O O M T 0 0 V O N N O C OO Om O a N N lfJ a 0 cr T O ~ I~ m O lfJ N V 0 m I~ r O C~ V I~ N ~ V M M M m V N M I~ O V CO' N O M ~ m ~ M M (O V~ (O (O N I~ ~ M ~ M M M M U O V3 ~ M Q O N ~ O l° ~ O l° V M M N M M m N l° O M A N m M M V O N M O O M O M N cr M ` M M m ~ O r r m O M m I~ O N O V T M O L6 L6 L° L6 M r r V~ V O M lfJ r r O M O N' O (p M (O N V N~ N I~ r M V O V N U O V3 ~ ~ M Q O N M O M m I~ m O N M O O N M m O m M O M l° O lfJ 0 0 O M O I~ O N M N N O S lfJ lfJ M M LfJ M (O lfJ M lfJ N V (O (O M CO (O I~ m~ V (O m N lfJ m V lfJ m M N lfJ M' N O N (O ~fJ V M N N m (O M ~fJ M N U O V3 ~ H Q N N N N ~ LL LL N -O ~ N m ~ ~ ~ ~ ~ ll LL ~p N LL LL LL N to U_ O ll LL T 2 .O) d N N LL N N N ~ C ~ U N Z .N 'O O LL m N E y 'U LL LL LL ) E LL U a o U y o n U= o LL~ m o a m E E o .3 0- m n c o P Y° m 1-5 >m >'E E o 5 > y v m z `m m o 80 »QQQ2LLC)¢` iii cno~~a~LLUU~ REVENUE DESCRIPTION Charges to Bond Funds are service fees charged to bond funded projects. The fees are composed of direct labor charges and indirect administrative charges for various city operations. Direct labor charges are payroll charges billed directly to bond funded projects to off-set operational costs (i.e., work performed by Engineering, Streets, and Traffic personnel) provided to individual projects in the year in which the service was provided. This also allows the City to capitalize these labor related expenses in the individual capital project. Indirect administrative charges are charged to bond funded projects for the provision of various administrative services (i.e., Accounting, Finance, Project Management, etc...). HISTORICAL TREND ANALYSIS The estimated amount for FY 2005-06 is $540,555. This amount represents a decrease of 76.3 percent ($1,737,191) over the prior fiscal year's actual amount of $2,277,746. The decrease is attributable to the decision to move the City's Engineering Department out of the General Fund and into the Water Fund. Historical Charges to Bond Funds 3,500,000 °0 3,000,000 y 'E 2,500,000 0 2,000,000 o 1,500,000 y 1,000,000 c 500,000 y 0 2001-02 2002-03 2003-04 2004-05 2005-06 Year ISSUES Charges to Bond Funds are heavily dependent on the availability of bond-funded projects and the amount of work performed on those projects. In FY 2004-05, the City's Engineering Department was moved out of the General Fund and into the Water Fund, which resulted in a large decrease in revenue to the General Fund. However, there was a I comparable decrease in General Fund expenditures. Although the Engineering Department is no longer in the General Fund, the direct labor charges associated with this department are still being capitalized in the bond funded projects but the revenues to off-set operational expenses are now being recorded in the City's Water Fund. Also, charges for work on non- bond funded projects and other day-to-day services for internal customers (i.e., General Fund, Electric Fund, Waste Water Fund, ect...) are also recorded in the City's Water Fund. Beginning in FY 2005-06, streets and traffic operations are the only General Fund departments billing direct labor charges to bond funded projects. Indirect administrative charges from the General Fund include Accounting, Finance and some Project Management services. The five-year forecast includes a projected $5 million in Capital Improvement Program (CIP) projects for 2009-10 and 2010-11. The current CIP bond program will be completed in 2008-09 at which time the City Council will determine the dollar amounts for the next five-year CIP program. Bond charges for the projected $5 million amount to $225,000 per year to the General Fund. Forecasted Charges to Bond Funds 1,000,000 m 800,000 0 0 600,000 Z = 400,000 E 200,000 6 0 0 2006-07 2007-08 2008-09 2009-10 2010-11 Year CURRENT PRACTICES Prior to FY 2004-05, the City had no standard method for calculating administrative charges for bond-funded projects. The practice in place at that time included charges based on individual departments' projected staff time to be spent on individual projects. These charges were compiled on an annual basis during the City's annual budget process. However, beginning with FY 2004-05, the City implemented a new approach to calculating indirect administrative charges. This was done in conjunction with the City's blue ribbon committee and the passage of the current Capital Improvement Program. A schedule of indirect administrative charges is attached (Attachment A). Although some projects may be charged each category of administrative charge, these charges will only be charged if applicable. For example, a design project will most likely not have an acquisition charge. The acquisition charge will be charged once the project has been designed and the City is ready to acquire the project's land space. The following is a breakdown and explanation of indirect administrative charges by category: 2 1. Financing - This is staff time associated with bond issuance, bond rating and various functions related to City review and approval. 2. Acquisition - This is staff time dedicated to the acquisition of land. 3. Project Management - This is staff time dedicated to design and construction overview and oversight of general project progress up to and including completion. 4. Financial Administration - This is staff time dedicated to various accounting tasks associated with project monitoring and reporting. Based on this new method of calculating indirect administrative charges, Attachment B has been provided, which reflects a listing of capital projects by year and the associated indirect administrative charges. POLICY RECOMMENDATIONS The following assumptions have been included in the current five-year forecast: 1. The forecast includes $5 million in CIP funding for 2008-09 and 2010-11. 2. Continued use of current standardized method of calculating indirect administrative charges based on the percentages included in Attachment A. 3 ATTACHMENT A CAPITAL IMPROVEMENT ESTIMATION TABLE For Administrative Project Costs Project Costs Less than $500K to More than Category $500K $2.5M $2.5M Financing 2.0% 2.0% 2.0% Acquisition 1.0% 1.0% 1.0% Project Management 3.0% 2.0% 1.0% Financial Administration 1.0% 0.5% 0.3% Total Project Percentage 7.0% 5.5% 4.3% Page 4 aS° oS° '$a$~~~~ m N5 ~a~ ao~N oho -,o oooooomoooNO~o 00oooooN000mooooo00 -,o ooooooNOOOmo~o 00ooooomoooN000OOOo -,o oooooo~o~mao~o 000oooo~Nao~NOOOOOo N~~~ ~aNmN m P~ Sm aamN~~ N~~ - - - - - - - - - - - - - i ~ mt ~ m3~ Z,o m3~~ a q0 _ d.2~ E~~o Ulm - ~ ~~3 ;r➢a?~3q_ ~ r xmU~tsii~~y¢¢UUU- mtii ~tsii a'~~yU¢UUUU~a~'a' 0 E a w z w O1 ~ L W U O ~ EE EE EE EE EE EE EE .00000 ~EEEE ~EEEEEE~ U C = - - O OfL FFFFFFFFUUUUU uuFFFFFFUUUUUUFFu $$$$$$$$$$$$$d„ 00000000000000000'. `a 00 00 00 00 00 00 00 00 00 00 00 00 UO 00 00 00 00 00 00 00 00 00 00 00 00 00 00 UO UO UO OU ..m 00000000000000000 0 00000000000000000 0 ~ooooomoooomoo_~oo~o 000ooooomomooo_~o~o oomoooommooooo~o 0 E,_ mm_ m - om m om as m oE~ E ~°zo °zo E zE ELL_ m m mEE - E E m3¢ - m3 LLm~a EEC;~gEEc_- - °01 - F E E - - m 2'a 2 , - - c - - d 0-- E ddE 3o ~-q➢ o aETM c3:3s~q-m dQUa Q O ~m 301 ~~am mN 03~ _ _ o RI O 1UU O1o~a- ~U o mOa- `1 _ _ aW o'~ 5' 2'`m~ a' m. ~muFUWO~att ma'm m.~tiiW_000~z(9u a' m~WU~z(9xa'a'¢a'LL o E a w z w O1 ~ L w U O 0 E h E E E E E E E E E E E E E E E E E E E E E E .00000000 00000 ~'E _ ~EEEEEEE< <EEEEEEEEE EEEEE a a °-EEEEEEE_°- -_____°-EEEEEEEEE -EEEEE O OfL FFFFFFFFUUUUUUUFU uFFFFFFUUUUUUUUUU FFFFUUUUUUUUFa - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sooooo000000000000`~~ .0000000000000000 000000000 o o ooocc ~0000000000000000000000OOOOOOOOUOOUE 000000000000000000000OOOOOOOOOOOUOE 00000000000000 0000000, oouuuuul ISSUE IDENTIFICATION DESCRIPTION The Denton Municipal Airport is the recipient of various state and federal grants to construct improvements of various capital infrastructure items such as a new terminal, apron expansion, taxiway realignment, and runway extension. ISSUES The 2006 proposed bond sale, as previously provided to the City Council, includes the issuance of $700,000 in certificates of obligation to fund the City's match for the runway extension project. The 2006 bond sale will occur in June. Though this money will be necessary in the future, the timing does not require the complete amount for the City match at this time. Also, it is anticipated that the City Council will discuss the use of airport gas well revenues prior to the adoption of the 2006-07 Budget in September. Due to the timing of the various capital projects at the airport it may be necessary for the City to have available matching funds for the capital projects other than or in addition to the runway extension project. POLICY RECOMMENDATIONS In order to allow the airport maximum flexibility in the use of the $700,000 in certificates of obligation while the funding source of the long-term capital program is established, staff recommends that the bond fund project title change from Runway Extension to Airport Capital Projects when the bonds are sold. 1 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Fiscal Operations ACM: Jon Fortune ' SUBJECT Receive a report, hold a discussion, and give staff direction regarding Request for Proposal #3482 - Bank Depository Services. BACKGROUND During a quarterly Investment Committee meeting on February 8, 2006, the committee discussed technological advances in the banking industry, the increased volume of credit card transactions, and lockbox operational issues. The committee directed staff to pursue the potential for improvements to the City's depository services. In a memo dated February 17, 2006, staff notified City Council that a Request for Proposal (RFP) was being pursued. Depository services are provided to the City of Denton by JP Morgan Chase Bank (formerly Bank One) under a contract term that began March 1, 2004. This contract contains three possible one-year extensions for 2006 through 2009. Bank Depository services vary from processing the City's deposits and check disbursements to safekeeping individual investment securities. Other services include wire transfers, automated clearing house transactions, on-line cash management, positive pay, change orders, account reconciliation, check imaging, etc. The proposals are summarized in exhibits one and two. These services are numerous and are grouped into several areas for ease in analysis. The categories are provided in the "Bank Bid Fee Schedule". They include the following service categories: Account Services, Banking Center Services, Vault Services, Depository Services, Disbursement Services, Reconciliation Services, Funds Transfer Services, Automated Clearing House, Information Services, Securities and Safekeeping Services, and Lockbox Services. This contractual relationship has an organization wide impact as it provides a means for the day- to-day financial operations of all City departments. Therefore, a committee was formed to assist with the assessment and refinement of services in a bank depository relationship, and, to review all bank depository proposals based on several criteria included in the RFP. Committee members include several core customers/departments that utilize and/or facilitate the utilization of depository services. The committee members include the following: Agenda Information Sheet May 2, 2006 Page 2 Lori Allen, Bank Reconciliation Accountant Charles Atkinson, Utilities & Customer Service Manager Maura Bilger, Utility Services Supervisor Thomas Josey, Municipal Court Administrator Amanda Green, Parks Department Business Manager Antonio Puente, Budget Coordinator & Accounts Payable Supervisor Mike Rodgers, Controller Diana Ortiz, Chief Financial Officer Lee Ann Bunselmeyer, Treasury & Tax Manager Randee Klingele, Treasury Services Administrator Anthony Caranna, Technology Services Manager Several institutions submitted proposals for the committee to review. Over several days, presentations were made by each depository candidate explaining to the committee the institution's reporting capabilities and its ability to meet the City's needs. Each committee member was asked to provide input during these meetings and to discuss the effects that each particular entity would have on his or her department. Committee members were also charged with the task of identifying potential ways to improve or automate current processes and assess whether a certain entity brought newer technology to the City. After reviewing all of the proposals and presentations, members assessed and ranked each candidate based upon the specific criteria set forth in the Request for Proposal. Except for the cost of service, Exhibit 2 demonstrates that the candidates were assigned a "Yes" or "No" answer to each criterion. Exhibit 2 also includes the points allocated based upon the number of "Yes" answers within each category. The points in the cost of service category were assigned based upon an institution's cost proposal, the lowest cost being awarded the maximum number of points. Using this ranking system, all points were assigned objectively without favoring one specific criterion over another. The proposal with the lowest pricing was submitted by Wachovia Bank. In addition, Wachovia Bank received the most points by the review committee due to the added value provided by additional services. Services that Wachovia provided in their proposal that were not included in other proposals are: 1). Lockbox on-line exception review and accounts receivable conversion (ARC); and, 2). Depository check verification, check conversion to automated clearinghouse (ACH - priority clearing over paper), electronic account reconciliation for positive pay, electronic notification of returned checks and on-line returned item review (NSFs, ACH, etc.). The additional services positively impact other cash management and customer service related functions. For example, the committee anticipates handling and delivering less paper checks which reduces human costs like return items, armored car fees, etc. Agenda Information Sheet May 2, 2006 Page 3 The primary objectives of the depository agreement are to: • employ a Bank that is both capable of providing high quality banking services and willing to be attentive to the City's money matters; • maximize the total dollars earned by the City on invested monies in order to be prudent and effective custodians of the taxpayers' financial sources; • maintain a good working relationship with the depository Bank; • adequately compensate the depository Bank for services provided to the City and to allow a reasonable profit to be earned, subject to competitive forces in the marketplace; and, • fully comply with the requirements of Texas Local Government Code Chapter 105, as amended, The Texas Government Code, Chapter 2257, and all other applicable laws. The initial contract will be for a term of two years beginning June 1, 2006, and ending May 31, 2008, and includes a provision for extensions up to three, additional years or five total years under the same terms and conditions of the contract, subject to the mutual agreement of both parties. PRIOR REVIEW The Investment Committee met on February 8, 2006, and directed staff to pursue an RFP for potential savings. The Depository Review Committee unanimously recommends Wachovia for the City's bank depository for a term commencing on June 1, 2006 and ending May 31, 2008. The Investment Committee met on April 19, 2006, to review the proposals. They unanimously approved that the recommendation for Wachovia be forwarded to City Council for approval. FISCAL INFORMATION The related fees are included in the Treasury Division budget. The proposal by Wachovia includes a total reduction in bank depository fees of approximately $10,000 from prior year (Exhibit 1 and Exhibit 5). Agenda Information Sheet May 2, 2006 Page 4 EXHIBITS I- Bank Bid Fee Schedule 2- Bank Depository Analysis and Bid Key Points 3- 2006 Bank Depository RFP Mailing List 4- RFP #3482 - Depository Services Contract - Bank Bid Questionnaire 5- FY 2004-05 Bank Depository Fees Respectfully submitted: JLO 1014 Diana G. Ortiz Chief Financial Officer EXHIBIT 1 CITY OF DENTON BANK BID FEE SCHEDULE APRIL 2006 JPMORGAN CHASE WACHOVIA WELLS FARGO Estimated Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Volume Per Unit Charges Per Unit Charges Per Unit Charges 1 ACCOUNT SERVICES 2 FDIC Fee 5,262,614 3 Account Maintenance 6 10.00 60.00 10.00 60.00 8.00 48.00 4 ZBA Maintenance Master Account 1 - 5 ZBA Maintenance Sub Account 5 5.00 25.00 6 Additional DDA Statement 4 7 8 Total Account Services 60.00 60.00 73.00 9 10 BANKING CENTER SERVICES 11 Branch Credits Posted 314 015 235.50 0.40 125.60 0.4000 125.60 12 Branch Deposit Immediate Verify 13,142 - 0.0015 19.71 13 Branch Deposit Post Verify 1,345 - 0.0013 1.75 14 Night Drop Armored Car Deposit 371,882 - 0.001_3 483.45 15 Branch Order Currency Strap 18 - 0.0005 0.01 16 Branch Order Coin Roll 70 0.0800 5.60 17 Branch Deposit in Non Std Bag 4 2.50 10.00 18 Commercial Check Cashing 38 5.00 190.00 19 20 Total Banking Center Services 235.50 125.60 836.12 21 22 VAULT SERVICES 23 Vault Deposit 395 0.75 296.25 0.4 158.00 0.0400 15.80 24 Vault Deposit Dollars 673 - 0.0015 1.01 25 Vault Deposit Roller Coin 29 0 0015 0.04 26 Vault Dep Non Std Strap Notes 20,829 - 0.0015 31.24 27 Vault Deposit Std Strap Notes 142 0.0015 0.21 28 Vault Order Currency Std Strap 13 - 0.0005 0.01 29 Vault Standard Orders 6 - 1.00 6.00 30 Vault Order Coin Rolls 164 0.0800 13.12 31 Vault Order Non Standard Strap 248 - - 0.0008 0.20 32 Vault Activity Report Faxed 1 1.00 1.00 5.00 5.00 33 Vault Deposit Adjustment 1 5.00 5.00 34 Cash Vault Base Fee 1 35 Vault Cash Orders-Touchtone 1 0.7500 0.75 36 37 Total Vault Services 297.25 158.00 78.38 38 - - 39 DEPOSITORY SERVICES 40 Credits Posted 1,069 0.10 106.90 0.10 106.90 0.40 427.60 41 Dep Checks On Us 3,557 0.05 160 07 6.04 142 28 0.06 213.42 42 Dep Checks Clearinghouse 2,672 0.05 120 24 0.04 -1-66.88 -6o6 16042 43 Dep Checks Local City 1,370 0.05 61.65 0.04 54.80 0.06 82.20 44 Delp Checks Local City Selects 126 0.05 5.67 0.04 5.04 0.06 7.56 45 Dep Checks Local RCPC 12,385 0.05 557.33 0. 1 04 495.40 0.06 743 10 226.00 0.06 339 00 46 Dep Checks Local RCPC Selects 5,650 0.05 254.25 0.04 47 Dep Checks Local Selects Other 39 0.05 1.76 0.04 1.56 0 06 2.34 48 Dep Checks In District City 692 0.05 31.14 0.04 27.68 0.06 41.52 49 Dep Checks in District RCPC 413 0.05 Ill 0.04 16.52 0.06 2478 50 Dep Checks IN District Country 88 0.05 3-96 0.04 3.52 0 06 5.28 2 51 Dep Checks National Fro City 952 0.05 42.84 0.04 38.08 0.06 57.1 52 Dep Checks National Frb Other 3,742 0.05 168.39 0.04 14.9.68 0.06 224.52 53 Dep Checks High Dollar Group 30 0.05 1.35 0.04 1.20 0.06 1.80 54 Dep Checks Encoding 31,712 0.06 1,902.72 55 Dep Checks MICR Reject Repair - 0.15 56 Dep Checks Deposit Corrections 3 0.06 0.18 57 Delp Return Items Returned 109 2.50 272.50 2.50 272.50 0.06 6.54 58 Dep Return Redeposit Reclear 159 2.00 318.00 2.00 318.00 0.06 9.54 59 60 Total Depository Services 2,124.62 1,966.04 4,249.54 1 EXHIBIT 1 CITY OF DENTON BANK BID FEE SCHEDULE APRIL 2006 JPMORGAN CHASE WACHOVIA WELLS FARGO Estimated Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Volume Per Unit Charges Per Unit Charges Per Unit Charges 61 62 DISBURSEMENT SERVICES - 63 Checks/Debits Posted 171 010 17.10 0.08 13.68 0.05 8.55 64 Cent Dish Funding Transfer 45 0.05 2.25 65 Checks Photocopy Retrieval 31 3.00 . 93.00 1 50 46 50 2.50 77.50 66 Cont Dish Maintenance 1 75.00 75.00 1.00 50.00 15.00 15.00 „ 67 Cent Disb Checks Paid 2,832 0.10 _ 28326 0.08 226.56 0.07 198.24 68 One Net Cs Stop Photo Maint _ 69 Commercial Check Cashing 90 5.00 450.00 70 Stop Payment 10.00 - 10.00 5.00 71 Online Ck Svcs Image Maint 1 15.00 15.00 72 Online Ck Svcs Image Retrieve 9 1.00 9.00 1.00 9.o0 0.01 0.09 _ 73 Online Ck Svcs Image Retrieve 1.00 1.00 74 Cent Disb Subscription per Account 1 - 5.00 5.00 _ 75 76 Total Disbursement Services 492.30 345.74 756.63 77 78 RECONCILIATION SERVICES 79 Full Recon With POS Pay Maint 1 - 20.00 20.00 80 Full Recon With POS Pay Items 2,813 0.06 168.78 0.04 112 52 0.03 84.39 81 Check Exception Return 1 15.00 15.00 - 1 00 1.00- 82 Image Capture Per Item 203 0.03 6.09 O01 2.03 83 Transaction Image Capture 2,611 0.03 78 33 0 01 26.11 84 CD ROM Media Fee 1 - 1.00 15.00 85 CD ROM Maintenance 1 30.00 MOO - - 20.00 20.00 01 28.13 0.02 5626 0.02 56,26 86 CD ROM Check Safekeeping 2,813 6.01- 87 Incoming Trans with Recon 30 - 88 ARP Reject Key Entry 1.00 - 89 ARP Manual Key Entry 1 1.00 1.00 - 90 ARP Outgoing Transmission 1 - - 5.00 5.00 91 ARP Exception Items 2 1 50 3.00 1.00 2 00 92 ARP Checks Paid-FUII 2,813 0.03 84.39 93 ARP Optional Reports 1 _ 94 ARP Statement via CEO 1 95 CEO Image Positive Pay Image 1 0.10 0.10 96 Payee Validation Per Item-Standard 2,813 0.01 28.13 97 Positive Pay Maintenance 1 98 99 Total Reconciliation Services 330.33 183.78 329.41 100 101 FUNDS TRANSFER SERVICES 102 On-line Outgoing Wlre 19 6 00 114 00 5.00 95.00 7.00 133.00 103 Electronic Fed Debit S/T 12 6.00 72.00 5.00 60.00 5 00 60.00 104 Electronic Book Debit S/T 2 4.00 8.00 5.00 10.00 5 00 10.00 105 One Net Book Transfer 3 3.00 9.00 1 00 3.00 106 Incoming Wire 3 5.00 15.00 5.00 15.00 4 00 12.00 107 Fed Credit S/T 1 5.00 5.00 5.00 5.00 5.00 5.00 108 Wire Base Charge 1 0.00 5 00 5.00 109 Wire Template Storage 3 - 0.00 0.50 1.50 110 111 Total Funds Transfer Services 214.00 194.00 229.50 112 113 AUTOMATED CLEARING HOUSE - 114 ACH Maintenance 2 40.00 80.00 35.00 70.00 10.00 20.00 115 Net ACH Debit Originated 1,385 d .b6 83.10 0.04 55.40 0 03 41.55 116 Net ACH Credit Originated 1,939 0.06 116.34 0.04 77.56 0.03 58,17 117 ACH Debi! Received 82 6.'l 0 8.20 0.10 8.20 118 ACH Addenda Records 7 0.03 0.21 119 ACH Return 9 2.00 18.00 1.00 9.00 1.50 13.50 120 ACH Return Notification 9 0.85 7.65 1.00 9.00 121 ACH Delete Item 1 5.00 5.00 122 ACH Fax Service 18 - - 123 ACH Reversal Item 1 5.00 5.00 124 Internet ACH Batch Release Fee 4 - 3.00 12.00 125 - 126 Total Automated Clearing House 313.50 229.16 155.22 127 2 EXHIBIT 1 CITY OF DENTON BANK BID FEE SCHEDULE APRIL 2006 JPMORGAN CHASE WACHOVIA WELLS FARGO Estimated Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Volume Per Unit Charges Per Unit Charges Per Unit Charges 128 INFORMATION SERVICES 129 TOC Previous Day BAI Maint 1 130 TOC Intraday BAI Maintenance 1 - - - - 131 TOC Previous Day BAI Acct 5 15.00 75.00 10.00 50.00 10.00 50.00 132 TOC Previous Day BAI Item 4,549 0:06 272.94 0.05 227.45 0.05 227.45 133 TOC Intraday BAI Account 4 15.00 60.00 10 00 40.00 10.00 40.00 134 TOC Intraday BAI Item 3,245 0.06 194 70 0.05 162 25 0.05 162.25 135 CEO Event Messaging Service (Email) 43 - 0.10 430 136 CEO Search 1 0.30 0.30 137 138 Total Information Services 602.64 479.70 484.30 139 140 SECURITIES/SAFEKEEPING SERVICES 141 Coupon (Interest) Payments 10 - - 142 Maturities 2 25.00 50.00 12.00 24.00 35.00 70.00 143 Holding Fee- Book Entry 100 3.00 300.00 2.50 250.00 8.00 800.00 144 Online Deposit/Withdrawal 6 25.00 150.00 13.00 78.00 35{00 210.00 145 Manual Deposit/Withdrawal 1 45.00 45.00 10.00 10.00 146 Monthly Account Maintenance 1 - 10.00 10.00 147 Security Pledge Fees 6 20.00 120.00 18.75 11150 20.00 120.00 148 149 Total Securities/Safekeeping Services 665.00 464.50 1,220.00 150 151 LOCKBOX SERVICES 152 Account Maintenance 2 250.00 500.00 175.00 350.00 200.00 400.00 153 Image Capture Account Maintenance 2 25.00 50.00 250.00 500.00 - - 154 Payments 17,782 0 230 4,089.86 0.160 2,845.12 0.225 4,000.95 155 Multiples 4,502 0.210 945.42 0.100 450.20 0.300 1,350.60 156 Correspondence 109 0.210 22.89 0.500 54.50 0.260 28.34 157 Check/Coupon Image Item 44,568 0.030 1,337.04 0.022 980.50 0.020 891.36 158 Check/Coupon Image Transmission 1,000 0.030 30.00 0.022 22.00 0.010 10.00 159 Cash Processing 3 10.00 30.00 2.50 7.50 8.000 24.00 160 Stop Payment File Rejects 3 0.200 0.60 0.750 2.25 0.260 0.78 161 Unprocessable Items 105 0.250 26.25 0.120 12.60 0.280 29.40 162 Check Clearing-Deposited Items 17,782 0.045 800.19 0.040 711.28 0.060 1,066.92 163 Items Transmitted 17,782 - 0.003 44.46 0.010 177.82 164 Daily File Transmission 21 200.00 10.00 210.00 - 450.00 165 Daily Image Transmission 21 25.00 25.00 225.00 166 Deposited Items 42 - 1.00 42.00 0.400 16.80 167 Stop File Monthy Maintenance 1 250.00 168 Courier Mail Prep 2 25.00 50.00 169 Mark Sense Dection 200 0.010 2.00 170 Secure Document Destruction 17,784 - 0.001 17.78 171 Wholesale Lockbox Maintenance 1 105.00 105.00 - 172 Stop file, Account Validation File, ARC Opt-out 225.00 675.00 173 Inbound Transmission 3 - - - - 174 Stop File Per Item 100 0.700 70.00 175 Early Transmission Cut-off 2 125.00 250.00 176 177 Total Lockbox Services 8,212.25 6,502.19 9,416.97 178 3 EXHIBIT 1 CITY OF DENTON BANK BID FEE SCHEDULE APRIL 2006 JPMORGAN CHASE WACHOVIA WELLS FARGO Estimated Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Fee Charges/ Total Monthly Volume Per Unit Charges Per Unit Charges Per Unit Charges 179 MONTHLY RECAP OF FEES 180 181 DEPOSITORY SERVICES 182 Account Services 60.00 60.00 73.00 183 Banking Center Services 235.50 125.60 836.12 184 Vault Services 297.25 158.00 78,38 185 Depository Services 2,124.62 1,966 04 4,249.54 186 Disbursement Services 492.30 345.74 756.63 187 Reconciliation Services 330.33 183.78 329.41 188 Funds Transfer Services 214.00 194.00 229.50 189 Automated Clearinghouse 313.50 229.16 155.22 190 Information Services 602.64 479.70 484.30 191 Securities/Safekeeping Services 665.00 464.50 1,220.00 192 193 Total Depository Services 5,335.14 4,206.52 8,412.10 194 195 LOCKBOX SERVICES 196 Total Lockbox Services 8,212.25 6,502.19 9,416.97 197 198 Total Monthly Fees 13,547.39 10,708.71 17,829.07 199 200 201 202 203 204 ANNUAL RECAP OF FEES 205 206 DEPOSITORY SERVICES 207 Account Services 720.00 720.00 876.00 208 Banking Center Services 2826.00 1,507.20 110,033.41 209 Vault Services 3,567.00 1,896.00 940.61 210 Depository Services 25 495 44 23,592 48 50,994.48 211 Disbursement Services 5,907.60 4,148.88 9,079.56 212 Reconciliation Services 3 963 96 21205.36 3,952.92 213 Funds Transfer Services 2,568.00 2,328.00 2,754.00 214 Automated Clearinghouse 3,762 00 2,749.92 1,862.64 215 Information Services 7,231.68 5,756.40 5,811.60 216 Securities/Safekeeping Services 7 980.00 5,574.00 14,640.00 217 Total Depository Services 64,021.68 50,478.24 100,945.22 218 219 LOCKBOX SERVICES 220 Total Lockbox Services 98,547 00 78,026 22 113 003.64 221 222 Total Annual Fees 162,568.68 128,504.46 213,948.86 4 BANK DEPOSITORY ANALYSIS APRIL 2006 POINTS JP MORGAN WELLS CRITERIA ALLOWED CHASE WACHOVIA FARGO TOTAL POINTS EARNED 100 84 98 82 1. Ability to perform the requested services 35 26 33 31 Able to Perform Services (out of 46 Items) 46 34 44 41 A. Account Services FDIC Protection y Y Y Sweep Account Structure y Y Y B. Banking Center Services Armored Car Deposits y Y Y Change Orders y Y Y C. Vault Services Vault Deposits y Y Y Vault Change Orders y Y Y Electronic Deposit Correction Notice N Y Y D. Depository Services Check Clearing Services y Y Y On-line Returned Check Review N Y Y E. Disbursement Services Controlled Disbursement y Y Y Stop Payments y Y Y On-line Check Image Retrieval y Y Y F. Reconciliation Services Full Account Reconciliation y Y Y Monthly Statements-serial sort y Y Y Electronic Recon File N Y Y Check Image Capture y Y Y Deposit Slip Image Capture N Y Y Positive Pay y Y Y Multiple Layers of Fraud Protection y Y Y Electronic Notice of Exceptions y Y Y G. Funds Transfer On-line Wire Transfer Capabilities y Y Y On-line Wire Transfer Detail y Y Y Wire Transfer Detail on Statements y Y Y H. Automated Clearing House ACH Capabilities y Y Y Prepared by the Department of Fiscal Operations 4/21/2006;9:47 AM 1 BANK DEPOSITORY ANALYSIS APRIL 2006 POINTS JP MORGAN WELLS CRITERIA ALLOWED CHASE WACHOVIA FARGO On-line ACH Return Review N Y Y ACH Detail Noted on Statements y Y Y On-line ACH Detail y Y Y 1. Information Services On-line Reporting y Y Y Location Name/Identifiable N Y Y Merchant ID's on Statements y Y Y J. Securities/Safekeeping Services On-line Safekeeping Services y Y Y On-line Safekeeping Reporting y Y Y Provide Electronic Call Notice N Y Y K. Lockbox Services Accept Stop Payment File y Y Y Provide Account Look-up N N Y Provide Address Correction Notice N N Y On-line Imaging y Y Y On-line Exception Review N Y N Provides Image Transmission Files y Y Y ACH Payment Conversion N Y N L. Other Services Check Verification/Check Guarantee N Y N Check Conversion y Y N Daylight Overdraft Services y Y Y Overdraft Services y Y Y Collateral Services y Y Y ATM Services y Y N II. Lowest aggregate cost of banking service 25 18 25 11 a. Annual Fees (schedule attached) $ 162,569 $ 128,504 $ 213,949 Prepared by the Department of Fiscal Operations 2 4/21/2006;9:47 AM BANK DEPOSITORY ANALYSIS APRIL 2006 POINTS JP MORGAN WELLS CRITERIA ALLOWED CHASE WACHOVIA FARGO III. Agreement to points outlined in this Bid and Contract 15 15 15 15 A. List of depository officers y Y Y B. List of depository directors y Y Y C. Ratings on outstanding debt y Y Y D. Proposed Agreements: wire transfer agreement, collateral, safekeeping, controlled disbursement, wire transfer, and stop payment y Y Y E. Additional contracts (lockbox, credit card, ACH, etc.) Y Y Y F. Reference list of agencies using institution's lock-box services y Y Y G. Bank Questionnaire y Y Y H. Transition schedule y Y Y IV. Financial condition & ability to meet collateral requirements 15 15 15 15 A. Audited Financial Statements and last two quarterly FDIC call reports y Y Y B. Paid-up Capital Stock & Permanent surplus for the depository y Y Y V. Safekeeping/collateral agreements accepted 10 10 10 10 Y Y Y A, Acceptance of securities pledged and collateral substitution requirements y Y Y B. Custodian of Collateral y Y Y C. Reporting Requirements y Y Y D. Safekeeping requirements accepted y Y Y Prepared by the Department of Fiscal Operations 3 4/21/2006;9:47 AM CITY OF DENTON Depository Bid Key Points Apr-06 Description JPMorgan Chase Wachovia Wells Fargo OverDraft Protection 3 days 2 days 1 day Unlimited $2,000,000 5,000,000 Check Verification Not Available Available Not Available Check Guarantee Not Available Available Not Available Check Conversion Available Available Not Available On-line Return Check & ACH 2 week Return 24 Hour Return 24 Hour Return Decision & Notification Mail/Fax Notification Electronic Notification Electronic Notification Does not have On-line (real-time) On-line (real-time) On-line Return Return Review Return Review Full Account Reconciliation Services Electronic Transaction Recon File Not Available Available Available Information Reporting Services Electronic Deposit Correction Notice Not Available Available Available Lockbox Response Time on Issues Dedicated Out-of-State Rep Dedicated local Rep Dedicated Local Rep Account Look-up/Verification Not Available Not Available Available Same Day On-line Exception Review Not Available Available Not Available Wire Transfer 15 days in advance 45 days in advance 60 days in advance 4 2006 BANK DEPOSITORY RFP MAILING LIST BANK OF AMERICA BANK ONE TEXAS BANK ATTN: NATHAN R McCLELLAN, ATTN: RANDALL MCDONALD, PRESIDENT ATTN: BRYAN THOMAS, VP PUBLIC SECTOR VICE PRESIDENT 901 MAIN ST - 7T" FLOOR TXI-3279 2525 RIDGMAR BLVD DALLAS TX 75202-3714 1200 W UNIVERSITY DR FORT WORTH TX 76116 DENTON TX 76201 KEN INGRAM WELLS FARGO FIRST UNITED BANK FIRST BANK MAC T5576-022 416 W UNIVERSITY DR 321 W OAK ST 101 S LOCUST DENTON TX 76201-1842 DENTON TX 76201-9037 DENTON TX 76201 FIRST CONVENIENCE BANK FIRST SECURITY BANK FIRST STATE BANK 1515 S LOOP 288 3970 FM 2181 STE 100 1400 N CORINTH BND STE 101 DENTON TX 76205-4729 CORINTH TX 76210-4249 CORINTH TX 76208-5317 GUARANTY BANK INWOOD NATIONAL BANK NORTHSTAR BANK 1444 W UNIVERSITY DR 2220 SAN JACINTO BLVD 400 N CARROLL BLVD DENTON TX 76201-1700 DENTON TX 76205 DENTON TX 76201-9024 POINT BANK SANGER BANK STATE FARM BANK 1700 N. CARROLL BLVD 501 N STEMMONS 2442 LILLIAN MILLER PKWY #115 DENTON, TX 76201 SANGER TX 76266-9375 DENTON TX 76205-2902 POINT BANK TEXAS BANK FIRST UNITED BANK 1-35 & TEASLEY 729 FORT WORTH DRIVE 1517 CENTRE PLACE DRIVE 1720 WESTMINSTER STREET DENTON, TX 76201 DENTON, TX 76201 DENTON TX 76205 PROVIDENT BANK BANK OF AMERICA 2220 SAN JACINTO BLVD 2434 1-35 SOUTH DENTON, TX 76205 DENTON, TX 76201 ADVANTAGE MORTGAGE NETWORK BANK OF AMERICA 2442 LILLIAN MILLER PKWY STE 110 1851 1-35 EAST DENTON, TX 76210 DENTON, TX 76205 WACOVIA BANK WASHINGTON MUTUAL 1696 SOUTH LOOP 288 / FIRST CONVENIENCE BANK DENTON, TX 76205 500 W UNIVERSITY DR DENTON TX 76201 3482 bank depository rfp 3/23/06 BH REQUEST FOR PROPOSAL BANK DEPOSITORY SERVICES CITY OF DENTON, TEXAS MARCH 7,2006 RFP 3482 OPENING DATE: APRIL 4, 2006 Page 1of23 NOTICE TO BIDDERS Sealed bid proposals will be received by the City of Denton, Texas at the office of the Purchasing Agent prior to 2:00 p.m., on April 4, 2006, then publicly opened to purchase the following listed items as per bid instructions and specifications. RFP #3482 - REQUEST FOR PROPOSALS FOR BANK DEPOSITORY SERVICES Qualified prospective bidders may obtain copies of the bid invitation with information to bidders, bid proposals, plans and/or specifications at the office of the Purchasing Agent, located at 901-B Texas Street, Denton, Texas 76209 the Purchasing/Warehouse portion of the Service Center complex. The City of Denton, Texas reserves the right to reject any and all bids and to waive defects in bids. No officer or employee of the City of Denton shall have a financial interest, direct or indirect, in any contract with the City of Denton. Minority and small business vendors or contractors encouraged to bid on any and all City of Denton proj ects. CITY OF DENTON (940) 349-7100 TOM D. SHAW, C.P.M. PURCHASING AGENT This advertisement to run on March 7 and March 14, 2006. Page 2of 23 I. INTRODUCTION The City of Denton is seeking applications from eligible financial institutions (`Bank") to be the banking services depository for public funds of the City. This agreement will not cover any investment transaction activities other than safekeeping services and possible purchase of certificates of deposit within a pre- defined limit. The City plans to manage its own investment portfolio. The contract period will be two (2) years beginning June 1, 2006 and ending May 31, 2008, with a provision for a one (1) year continuation up to three (3) additional years under the same terms and conditions of the contract, subject to the mutual agreement of both parties. The contract will also provide for an extension period not to exceed one hundred twenty (120) days for the transition to the new Bank depository. At the outset, the City wishes to communicate the primary objectives of the depository agreement, an important component of the overall treasury and debt management program of the City of Denton: • To seek a Bank that is both capable of providing comprehensive banking services, and willing to be attentive to the City's money matters. • To maximize the total dollars earned by the City on investment monies in order to be prudent and effective custodians of the taxpayers' financial resources; • To maintain a good working relationship with the depository Bank; and • To adequately compensate the depository Bank for services provided to the City and to allow a reasonable profit to be earned, subject to competitive forces in the market place. • To fully comply with the requirements of Texas Local Government Code Chapter 105, as amended. This Request for Proposal (Bid) is intended to serve as the proposal form for the depository agreement. There are several blanks to fill in and questions to be answered. Any alterations, changes, or deletions to this Bid may be reason for the City to disregard and reject the proposal. Any terms in this Request for Proposal which are in conflict with Chapter 105, as amended, of the Texas Local Government Code shall be deemed superseded by such chapter. Conflicts discovered between this RFP and state law by a bidder should be notes in such bidder's proposal form. Bidders will be required, if awarded the depository agreement bid, to execute the documents attached as Exhibits A, unless bidders note in their bid exceptions to the terminology in such exhibits. City will disregard any exceptions which conflict with Chapter 105 referenced above. All points outlined and materials requested will be incorporated into the bidder's reply to be considered for evaluation. Attachments will be appropriate in order to answer some of the enclosed questions. Questions regarding this Bid may be addressed to: Purchasing Agent, c/o City of Denton - Purchasing Department, 901-B Texas St., Denton, TX 76209; FAX 940-349-7302. Page 3of 23 II. CALENDAR OF EVENTS Target Date Description of Events March 6, 2006 Bid sent to all banks located in Denton and those outside the city limits that requested a copy March 6, 2006 Advertise Bank depository notice in local newspaper April 4, 2006 Receive proposals from interested banks April 11-13, 2006 Bank Presentations and Product Demonstrations April 17-21, 2006 Review recommendation with the Investment Committee May 2, 2006 City Council to review Depository Services Proposals May 9, 2006 City Council to award contract June 1, 2006 New Bank depository contract period begins III. CRITERIA FOR EVALUATION A. The City staff will review the submitted proposals carefully. The recommendations will be based on the proposal determined to be best on behalf of the City and the taxpayers. The following areas will be considered in the evaluation of the proposals: CRITERIA WEIGHTED PERCENTAGE • Ability to perform the requested services 35% • Lowest aggregate cost of banking services 25% • Agreement to points outlined in this Bid and Contract 15% • Financial condition & ability to meet collateral requirements 15% • Safekeeping/collateral agreements accepted 10% Page 4of 23 B. In order to be considered, the depository must be a federal or Texas-chartered bank. Each proposal must provide the following information: 1. The amount of paid-up capital stock and permanent surplus for the depository. 2. Audited financial statements for the most recent reporting year. 3. A list of the depository officers. 4. A list of the depository directors. 5. Ratings on outstanding debt. 6. Proposed wire transfer agreement/contract. 7. Sample account analysis and monthly bank statement (must show city requirements IX.B & E). 8. Availability of funds schedule. 9. Proposed collateral agreement. 10. Proposed custody/security safekeeping agreement. 11. Any additional contracts or agreements requiring City approval (ACH, Credit Card Processing, Lockbox etc.) 12. RFP documents including fee schedule. 13. Daylight overdraft policy. 14. Reference list of agencies currently using your institution's lock-box services. 15. Reference list of agencies currently using your depository services 16. Sample daily lock-box transmission reports. 17. Sample monthly lock-box activity reports. 18. Sample monthly and daily credit card activity reports C. All RFPs must include a completed fee schedule in the form provided. Only the charges listed in Section IV: B. Services and Fees will be acceptable in the monthly account analysis. Once selected as the City's Depository, no additional or increased fees for services in the fee schedule may be charged to the City during the initial two (2) year contract period. An account analysis must be forwarded to the City each month for review. Upon review and any necessary corrections, the City will authorize a debit to its Control Concentration Account. Under most circumstances, the review should be completed in five (5) business days. No interest or other late charge payment shall ever be due. D. Services may be modified by mutual agreement. It is expected the range of services described in this RFP will be used for the length of the contract; however, the City may discontinue any service after sixty (60) days written notification to the depository. Services may also be added, with costs of new services to be negotiated at that time. Page 5of 23 IV. BANK QUESTIONNAIRE The Bank is requested to thoroughly answer the following questions. Additional pages may be appended if space is inadequate. I. How is the Bank chartered? 2. What percent of current loans are classified as non-performing? 3. Does the Bank have any significant problems noted by regulatory agencies in the past twenty-four (24) months? If "yes", please explain. 4. Indicate the Bank's capital to assets ratio for the last five (5) years. 5. What was the Bank's 2005 return on assets (ROA)? 6. Attach copies of the Bank's most recent FDIC (UPBR)call report s. 7. Is the Bank a branch bank or will it soon become a branch bank? If so, please indicate which services will be provided from the Bank's present location and which will be provided from the main Bank. Also, please indicate service location throughout the proposal where applicable. 8. Please list all service locations in Denton. V. ACCOUNT DESCRIPTIONS A. General The City intends to establish the following Bank accounts: Account Name Type Disbursement Account Zero-Balance Account Depository Account Zero-Balance Account Pay Flex Account Zero-Balance Account Tax Lockbox Account Zero-Balance Account Utility Lockbox Account Zero-Balance Account Concentration Account Super Now Account The City reserves the right to open or close any number or type of accounts throughout the period if necessary although no changes are anticipated. Page 6of 23 B. Services and Fees Estimated Monthly Fee Charges/ Total Monthly Depository Services Volume Per Unit Charges Account Services FDIC Fee 5,262,614 Account Maintenance 6 ZBA Maintenance Master Account 1 ZBA Maintenance Sub Account 5 Additional DDA Statement 4 Banking Center Services Branch Credits Posted 314 Branch Deposit Immediate Verify 13,142 Branch Deposit Post Verify 1,345 Night Drop Armored Car Deposit 371,882 Branch Order Currency Strap 18 Branch Order Coin Roll 70 Branch Deposit in Non Std Bag 4 Commercial Check Cashing 38 Vault Services Vault Deposit 395 Vault Deposit Dollars 673 Vault Deposit Roller Coin 29 Vault Dep Non Std Strap Notes 20,829 Vault Deposit Std Strap Notes 142 Vault Order Currency Std Strap 13 Vault Standard Orders 6 Vault Order Coin Rolls 164 Vault Order Non Standard Strap 248 Vault Activity Report Faxed 1 Vault Deposit Adjustment 1 Depository Services Credits Posted 1,069 Dep Checks On Us 3,557 Dep Checks Clearinghouse 2,672 Dep Checks Local City 1,370 Dep Checks Local City Selects 126 Dep Checks Local RCPC 12,385 Dep Checks Local RCPC Selects 5,650 Dep Checks Local Selects Other 39 Dep Checks In District City 692 Page 7of 23 Estimated Monthly Fee Charges/ Total Monthly Depository Services Volume Per Unit Charges Depository Services (Continued) Dep Checks in District RCPC 413 Dep Checks IN District Country 88 Dep Checks National Frb City 952 Dep Checks National Frb Other 3,742 Dep Checks High Dollar Group 30 Dep Checks Encoding 31,712 Dep Checks MICR Reject Repair 0 Dep Checks Deposit Corrections 3 Dep Return Items Returned 109 Dep Return Redeposit Reclear 159 Disbursement Services Checks/Debits Posted 171 Cont Disb Funding Transfer 45 Checks Photocopy Retrieval 31 Cont Disb Maintenance 1 Cont Disb Checks Paid 2,832 Commercial Check Cashing 90 Stop Payment 0 Online Ck Svcs Image Maint 1 Online Ck Svcs Image Retrieve 9 Online Ck Svcs Image Retrieve - Reconciliation Services Full Recon With POS Pay Maint 1 Full Recon With POS Pay Items 2,813 Check Exception Return 1 Image Capture Per Item 203 Transaction Image Capture 2,611 CD ROM Media Fee 1 CD ROM Maintenance 1 CD ROM Check Safekeeping 2,813 Incoming Trans with Recon 30 ARP Reject Key Entry ARP Manual Key Entry 1 ARP Outgoing Transmission 1 ARP Exception Items 2 Page 8of 23 Estimated Monthly Fee Charges/ Total Monthly Depository Services Volume Per Unit Charges Funds Transfer Services On-line Outgoing Wire 19 Electronic Fed Debit S/T 12 Electronic Book Debit S/T 2 One Net Book Transfer 3 Incoming Wire 3 Fed Credit S/T 1 Automated Clearing House One Net ACH Maintenance 2 Net ACH Debit Originated 1,385 Net ACH Credit Originated 1,939 ACH Debit Received 82 ACH Addenda Records 7 ACH Return 9 ACH Return Notification 9 Information Services TOC Previous Day BAI Maint 1 TOC Intraday BAI Maintenance 1 TOC Previous Day BAI Acct 5 TOC Previous Day BAI Item 4,549 TOC Intraday BAI Account 4 TOC Intraday BAI Item 3,245 Securities/Safekeeping Services Coupon (Interest) Payments 10 Maturities 2 Online Deposit/Withdrawal 6 Manual Deposit/Withdrawal 1 21. List any other applicable Bank charges: Only the Bank charges listed above and in this section will be acceptable in the monthly lockbox account analysis. Once selected as the City's Depository, no additional or increased fees for these services in the fee schedule may be charged to the City during the initial two (2) year contract period. Page 9of 23 NOTE: Under a straight fee arrangement with the Bank, analysis charges would be debited to the control concentration account and an analysis fee statement will be mailed to the City each month. Under a compensating balance method, all accounts would be tied to a main account and collected balances would be maintained to offset service charges. Also note, that estimated volume above are projections based on current annual volumes. C. Automatic Payroll Deposit is a service the City offers its employees. The Bank would be required to produce bi-weekly payroll transfers furnished by the City in ACH format for the transfer of funds directly to the employee bank, savings and loan, or credit union account. Please state the Bank's procedure for this service and list appropriate cut-off times that would apply. The City's net payroll is approximately each pay period. State whether the Bank would offer any type of special checking, money market, or loan account for the City employees. D. Does the Bank offer any type of sweep account where excess City funds could be invested at a higher rate overnight than in a Super Now account arrangement? Does the Bank have money market funds consisting of treasuries, agencies, prime commercial paper, prime domestic bankers acceptances and collateralized or insured certificates of deposit, that the City could utilize daily as an investment alternative? If so, please explain the fund's parameters and interest earnings history or attach a separate prospectus. E. Optional Bid: Automated Teller Machines (ATM) Note: The City of Denton reserves the right to remove this section from consideration and to award separately. The Bank will install and maintain ATM units at the following locations: • Denton Municipal Complex, 601 E. Hickory • Water Works Park, 2400 Long Road The City agrees to furnish a lighted, inside location and sufficient electrical power for each machine installation. Page 10of 23 F. Lockbox Note: The City of Denton reserves the right to remove this section from consideration and award separately. The City desires lock-box services for the purpose of collecting and processing the City's utility and property tax revenues. The City separates utility bill collections and tax collections into (2) divisions because of their unique needs and record keeping constraints. The Utility Lockbox Service is a year- round operation, while the Tax Lockbox Service is seasonal (October lst-March 31St) Services and Fees: Estimated Monthly Fee Charges/ Total Monthly 1. Lockbox Services Volume Per Unit Charges Account Maintenance 2 Image Capture Account Maintenance 2 Payments 17,782 Multiples 4,502 Correspondence 109 Check Image Item 22,284 Cash Processing 3 Stop Payment File Rejects 3 Unprocessable Items 105 Daily File Transmission (2 per day) (1 for Tax, 1 for Utilities) Daily Image Transmission (1 per day) (Tax Only) Online Image (Utility Account Only) 2. List any other applicable Bank charges. Only the lockbox charges listed above and in this section will be acceptable in the monthly lockbox account analysis. Once selected as the City's Depository, no additional or increased fees for these services in the fee schedule may be charged to the City during the initial two (2) year contract period. Page 1 lof 23 3. Bank capability to meet the following requirements must be detailed in the proposal. Please note, all the following requirements must be met for full consideration. • The provider must obtain two (2) post office boxes: one for utility payments and one for tax payments. • All payments must be processed within 24 hours. • The provider must be capable of retrieving mail from post office, opening all correspondence, balancing contents, direct deposits to the City's bank account, and transmitted updates/posting to the City of Denton customer accounts. • The provider must be able to process the following payments: - 1 check, 1 coupon - 1 check, multiple coupons - 1 check, 1 spreadsheet with listing of accounts - multiple checks, 1 coupon - check only - electronic bill payments - credit card payments • The provider must be capable of accepting monthly billing transmission files from the City to validate each customer account number, occupancy code, owner name, billing address, and billing amount and prepare a transmission file with validated accounts. Unverified accounts must be forwarded to the City daily for further research. • Provider must have the capabilities of converting checks to ACH payments for priority processing. • Provider must be capable of accepting monthly stop payment files which will include a listing of accounts that the City will not accept payments on. • The provider must have the capability to sort out coupons identified for special processing (Plus One Program, Over-65 Exemption, etc). • The provider must provide the City all miscellaneous correspondence received through lock- box (Le, address changes, payment extension requests, etc), bill stubs/coupons, and non- processable payments within 24 hours. • The provider must submit separate daily and monthly reports, indicating the number of pieces received and the total revenue deposited for both the utilities and tax accounts. • The provider must have the capability to transmit data and images electronically through a billboard or web application, on a daily basis, by 1:00 p.m., in order to expedite cash flow and update customer accounts.. • The provider must designate a dedicated on-site contact person for research and issue resolution. • The provider must provide same day on-line viewing of all check images. • The provider must have the capabilities to return payment envelopes. • Provider must be capable of providing daily e-mail reports and on-line detailed viewing of deposit adjustments and returned checks. Page 12of 23 G. Payment for Services The City intends to pay for all account services provided by the Bank as set forth in Section V. B. The method expected to be used for the payment of these services is the direct payment method. The Bank should debit the appropriate account on a monthly basis. The City will require an account analysis each month which will clearly show volume counts, fees charged, and total price for servicing the account. The account analysis should also show average ledger balances, average uncollected funds, and average collected balances, interest rates and the amount of interest paid or credited to the account. These fees are not subject to change for the length of this account. Please submit a sample of the monthly account analysis statement that will be provided and paid monthly. Please submit a sample of the safekeeping account analysis. H. Collected Funds Definition The City desires to receive same day credit for all funds deposited by 3:00 p.m. The funds should be investable for any investment transactions that can be executed. If not invested, the funds should earn interest at the rate being paid for Super NOW accounts. Please attach availability schedule. Use a separate attachment if necessary. 1. Super NOW Rates Please provide a detailed explanation of the Bank's policy and methodology used in the setting of rates paid on Super NOW accounts. Also, provide a schedule of all rates paid on Super NOW accounts since January 1, 2004. Specifically indicate if the rates are applied to ledger balances or collected balances. Indicate when the rates change and if they are based on a market rate such as T- Bill discount or yield rate. If the Bank proposes to pay the City a different rate on its Super NOW accounts, indicate that proposal. J. Other Services Bank capability to meet the following requirements must be detailed in the proposal. Please note, all the following requirements must be met for full consideration. 1. Point-of-Sale Deposit Services: The City desires services that will offer the latest in check technology that will convert paper checks to electronic transactions at the point-of-sale to improve cash flow, minimize reconciliation efforts, reduce bank fees, and reduce returned checks. Bank capability to meet the following requirements must be detailed in the proposal. - Must have late deposit cut-off times (8:00 p.m.) and allow for same day credit to the City's Control Concentration Account. - Allows for checks deposits to be processed as image replacement documents, ACH, or both. - Deposit batches must appear as a single credit to the bank statement for reconciliation purposes. - Must be able to scan standard-size checks and payment coupons. - Must have the flexibility to include discretionary data fields for the input of customized information. - Must have reporting capabilities for standardized deposit reports. Page 13of 23 Images of payments and coupons must be accessible for on-line viewing up to 180 days. - Allows for same day modification to add new user, change authorization levels, and deletion of users. Provide an explanation of services, identify reduction/increase in fees for this service to those identified in Section B. Services and Fees for traditional deposit services, cost of hardware, and cost of implementation and training. 2. Positive Pay. - Must have capabilities to receive daily disbursement file from the City and verify the check number, check amount, and payee name. - Must provide daily e-mail or on-line notification services of daily exceptions 3. Accounts Payable/ACH processing. The City desires services that will allow the payinent of city liabilities through ACH processing. Please identify the process, costs, and on-line reporting/viewing services associated with this process. Demonstration of ACH on-line services will be required during the Bank Presentations as outlined in section IT. - Must have on-line reporting and viewing capabilities - Must be able to submit electronic data for both debits and credits - Must be able to reverse debits and credits 4. Depository Services Requirements. Bank capability to meet the following requirements must be detailed in the proposal. Please note, all the following requirements must be met for full consideration. - Bank Statements must be available on the 5"' working day - Wire Transfers detailed information must be noted on the bank statement and accessible through on-line reporting services. - ACH detailed information must be noted on the bank statement and accessible through on-line reporting services. - Credit Card Merchant ID's must be noted for deposits, adjustments, and chargebacks on the bank statement and accessible through on-line reporting services. - Deposit Slips must be serialized and must provide location identification numbers. - Deposits must include the serialized numbers and location identifications on the bank statements and on-line reporting services. - All deposit adjustments, returned checks, etc. noted on the bank statement and on-line reporting services must include original deposit information (serialized deposit slip number and location identification). - Must receive daily notification of all ACH rejects, returned checks, deposit adjustments, etc by fax, e-mail, and on-line notification services. - Must receive reconciliation files electronically 5. Please specify any other services available to the City of Denton which may be thought to be beneficial or that may apply to the City. State all related fees. Page 14of 23 VI. SAFEKEEPING/COLLATERAL REQUIREMENTS A. Securities Pledged As security for the deposits of the City of Denton, the Bank shall pledge to the City securities equal to the largest total ledger balances the City of Denton maintains in the Bank. Certificates of deposit and other evidences of deposit shall be collateralized at 102% of market with/by U.S. Treasury Bills, Notes, and Bonds or any other securities approved by the Chief Financial Officer with a remaining maturity of five years or less. The securities so pledged, the amounts thereof and the time for pledging same must satisfy the requirements of Texas Local Government Code Chapter 105, as amended. Additionally, U.S. Treasury securities shall be the primary securities accepted as collateral. B. Collateral Substitutions Any substitutions of the securities or reductions in the total amount pledged may be made only by and with proper written authorization approved by the City Manager, the Assistant City Manger, or Chief Financial Officer, or his designated representative. In the case of reduction, the Bank must provide in writing that collateral will be available when needed to meet normal City balance increases throughout the year. The City must approve all securities pledged. Any state or local government bonds pledged must have a rating of at least A or Al or better by Moody's Investor Services or Standard & Poors Corporation. C. Custodian of Collateral Securities pledged as collateral must be retained by a third party custodian, that is, a subscriber to the Fed Security Wire, and held in joint safekeeping for the Depository and the City. The custodian must be approved by the City and be: • a state or national bank domiciled in Texas, • a federal home loan bank, or • a Federal Reserve Bank or branch of a Federal Reserve Bank. The City shall be provided the original safekeeping receipt on each pledged security which will be filed with the Chief Financial Officer of the City of Denton. Written release by the City is required for all releases or substitutions of pledged accounts. D. Reporting Requirements The Bank shall provide the City a report of securities pledged on a monthly basis or at any time requested by the City Manager, Assistant City Manager, Chief Financial Officer, or a designated representative. This report should reflect the following information as of the end of each month and be delivered to the City by the 5th of each month. Page 15of 23 Total pledged securities itemized by: • Name • Type/Description/Cusip Number • Par Value • Current Market Value • Maturity Date • Moody's or Standard & Poors Rating (both, if available) E. Eligible Securities The following investment securities are approved for collateral: 1. United States Treasury notes, bills or bonds or obligations fully and unconditionally guaranteed as to principal and interest by the full faith and credit of the United States; 2. Obligations of the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation or Federal National Mortgage Association; and 3. FDIC coverage. The City will not allow Government National Mortgage Association securities or any other asset backed/pooled type securities as collateral. These items constitute the only acceptable means of collateralizing the City's deposits. The securities must be held in safekeeping by a third party financial institution pursuant to a safekeeping agreement signed by the Depository Bank and the City. Repurchase agreements are not acceptable as collateral to the City of Denton. F. Safekeeping Requirements The securities pledged shall be held in safekeeping by a separate and different Bank other than the depository Bank. The original copy of all safekeeping receipts shall be filed with the Chief Financial Officer of the City of Denton. The City will reimburse the depository Bank for any safekeeping charges, if any. Specify the safekeeping charges that will apply: The City, Depository Bank, and the Safekeeping Bank shall operate in accordance with a master safekeeping agreement signed by all three parties. The safekeeping agreement must clearly state that the Safekeeping Bank is instructed to release the collateral securities to the City if the City has determined that the Depository Bank has failed to pay on any accounts, or is in default of this agreement, or the City has determined that the City's funds are in jeopardy for whatever reason including involuntary closure or change of ownership, and if the instructions for release have been formally requested by the City Council by ordinance or resolution. A copy of the safekeeping agreement and the name of the safekeeping Bank to be used in the event you are awarded the Bank Depository Agreement must be submitted with the proposal. Page 16of 23 G. Maximum Amount Offered Please state the maximum amount, if any, of pledged securities which the Bank is willing or able to commit for collateralized Super NOW accounts throughout the contract period above the $1,000,000 minimum requirement. $ H. City to Handle Investments The City of Denton will be responsible for handling the investment bidding process. The Depository Bank, along with any eligible financial institution shall be included in the bidding process as deemed appropriate and in accordance with the City's investment policies. 1. Safekeeping/Wire Services Bank capability to meet the following requirements must be detailed in the proposal. Please note, all the following requirements must be met for full consideration. - The Depository may act as transfer agent for some or all security transactions undertaken by the City. All transfers made shall be executed delivery versus payment, (i.e. payment shall not be made until the security is received). - The Depository must have the capability of executing on behalf of the City: physical; DTC; and Federal book entry security purchases and sales through the Federal Reserve Bank or a New York correspondent bank. - The City requires that security purchase and sale instructions be transmitted to the Depository through a web-based application (on-line). - The City also requires the ability to review the status of security transactions on-line. - Controls for securities clearance will be established by mutual agreement. - Please enclose a proposed security clearance/custody agreement with your RFP. - Safekeeping confirmation of all City security transactions will be issued and mailed to the City within two business days of settlement and must be available on a web-based application for exporting/downloading. - Written communication of all security call and put option notices will also be e-mailed or faxed to the City as soon as the Depository receives the notice. - A monthly report listing all City securities held in safekeeping will be mailed to the City within seven working days of the end of each month. The report must be available on a web-based application for exporting/downloading. J. Interest Rates Paid - Certificates of Deposit The City may choose to invest in the certificates of deposit in the depository Bank or any other eligible financial institution. The depository Bank agrees to accept time deposits from the City for investment purposes in the form of certificates of deposits in varying amounts and maturities at rates determined by the depository's competitive bid as submitted in accordance with periodic competitive bid solicitations conducted by the City. Page 17of 23 K. Interest Rate Calculations Interest on all certificates of deposit shall be computed on an actual day basis (365), and the interest will be paid to the City on the maturity date. Interest calculations will include the first day in the investment period but will not include the day of maturity. Payment will be made by crediting the Bank account. VII. OVERDRAFTS A. Definition The City does not intend to have a net overdraft position throughout the course of the contract. An overdraft is defined as a negative demand balance in the City accounts collectively, not by individual account. B. Terms Should an overdraft occur in the aggregate, the following stipulation shall apply: 1. The maximum number of days the overdraft will be allowed is 2. The maximum amount of the net overdraft to be allowed will be $ 3. The interest rate charged for overdrafts will be per annum computed on the actual day basis. VIII. INFORMATION SERVICES A. Account Reconciliation The City will process its own reconciliation for its accounts but requires data as follows: 1. Monthly statements on all accounts showing overall activity shall be mailed within five (5) working days after the close of the calendar month. Statements shall include deposits made on the last day of the period. The accompanying checks shall be arranged in ascending numerical order for the Control Concentration Account which will include operating checks and payroll checks. All other account statements should include debit/credit advices which the City will be responsible for placing in numerical order. The City requires a report reflecting all items paid in serial number sequence, which is balanced to the Bank statement (partial account reconciliation). (Please provide a sample monthly statement with your RFP). 2. The Depository shall also provide the City with a computer file of the transactions for each account. The file is to be transmitted by modem, tape/disk, or e-mail. Requirements for the file will be provided at a later date. A computer printout of all activities should accompany the computer file. Each debit or credit item, other than checks, deposits, or wire transfers, shall be supported by a written explanation identifying such item. Page 18of 23 B. Check Safekeeping Service All paid checks shall be returned to the City monthly along with the monthly statement. In addition to the return of the checks, all checks shall be captured monthly on a compact disk (2 copies) and sent to the City. This process should allow the City to search for cleared checks and print the image of a cleared check. The checks returned in the monthly statement do not require sorting, as long as the compact disk images are available. Please include any software cost associated with this service in the fee schedule section. The City may require a demonstration by the Depository of this service. IX. OTHER STIPULATIONS A. Regulation Notices The Bank will notify the City in writing within ten (10) days of any changes in Federal or State regulations or laws that would thereafter affect the depository agreement. The Bank shall also notify the City of any new services that become available to the City throughout the contract period. B. Wire Transfers The City shall submit all outgoing wire transfers to the Depository according to its published cutoff times established for current customers. The Depository shall maintain wire transfer facilities to the Federal Reserve Bank for investment purchases or sales and other transactions with financial institutions. Written confirmation of such transactions will be provided to the City and a duplicate copy of the debit or credit shall be furnished to the City within twenty-four (24) hours. Notification to the City of incoming wire transfers or problems with outgoing wire transfers shall be made within one (1) hour of the transaction. The City requires that all outgoing wire transfers be released within one hour. In addition, all wire transfers (both incoming and outgoing) must be properly noted on the bank statement. (i.e., Wire Transfer- State Comptroller). The Chief Financial Officer or the Treasury & Tax Manager will authorize all wire transfers on behalf of the City. In the event of computer problems or other unexpected difficulties, the Depository shall use whatever means necessary to ensure that the City's outgoing wire transfers are completed on the date specified through City initiated instructions. C. Debit and Credit Adjustments The City requires that a copy of all debit and credit adjustments be faxed or emailed to the Controller with supporting documentation, as the entries are made throughout each month. The documentation must include reference to the original deposit slip number and location identifier. The City's monthly statement should also include a copy of all debit and credit adjustments. Adjustments should include descriptions, dates, and amounts in order for the City to properly adjust its books. The City shall not be responsible for the cost of credit and debit adjustments necessitated by Bank. Page 19of 23 D. Account Balances The Bank shall have a means of contacting the City prior to 9:00 a.m. each business day to give the ending ledger balances for all accounts from the previous working day. E. Bank Statements Bank statements or statement activity shall be rendered by the fifth working day after the close of the calendar month. The statement must include deposits made on the last day of the month. The accompanying checks must be arranged in numerical order. In addition, the City requires that all transactions (customer deposits, credit card deposits, charge backs) must be noted with a location name or unique identifiable number on the bank statements. F. Right to Audit Records The Banks' records relating to the City of Denton accounts shall be open to review by either City staff members or City-appointed independent auditors during normal business hours. G. Financial Reports The Bank will submit a copy of the last audited annual financial statements and the subsequent quarterly supplements along with an annual year end uniform Bank Performance Report. H. Investment Extension Period The Bank agrees to honor and continue any investments made during the term of the depository contract that will mature after the expiration date of the depository agreement at the same rate established before the expiration of the contract. The investment extension period will not exceed ninety (90) days. 1. Bank Failure Should the Bank fail, close, or be forced into reorganization during the term of this contract, City reserves the right to cancel the contract and re-bid for City's depository services. J. Research Requests The City requests that all research requests be turned around within three (3) business days of the request. Page 20of 23 K. Returned Items All checks deposited by the City that do not clear the first time, should be submitted a second time before returning them to the City. Returned checks that do not clear on the second attempt shall be returned to the City within two (2) business days. The City shall receive same day telephone or e-mail notification of all return items in excess of $5,000. L. Transition Schedule Please provide a schedule documenting the transition of transferring the City's banking services from the current Depository to your institution. X. PROPOSAL INSTRUCTIONS A. Date, Time, Location Sealed proposals clearly marked "Proposal for Bank Depository Agreement" should be delivered to the Purchasing Division located at the City's Service Center, no later than 2:00 p.m., April 4, 2006 to the attention of. Tom Shaw Purchasing Agent 901-B Texas St. Denton, Texas 76209 NO PROPOSAL WILL BE RECEIVED AFTER 2:00 P.M. A. Response to the Bid The proposing Bank should use this Bid form to submit rates and to answer questions wherever possible. However, any point that the Bank cannot agree with should be clearly noted with attachments which explain this disagreement. Please reference the section and paragraph in these cases. Also, please clearly restate the question when supplying answers on any supplemental pages. B. Additional Information The City reserves the right to request additional information or to meet with representatives from proposing organizations to discuss points in the proposal before and after submission, any and all which may be used in forming a recommendation. C. Right to Reject Bids The City reserves the right to reject any and all proposals. Page 21 of 23 XI. OTHER MISCELLANEOUS A. Periodic Review The City of Denton shall require a review meeting at least once every six months to evaluate the working relationship between the City and the depository Bank. The objective will be to address any problems and to seek a responsible solution. More frequent meetings may be called if necessary. B. City Council Action The final appointment of a depository Bank will be made by City Council of the City of Denton. C. Bid Advertisement This Bid will be duly advertised and is being offered for consideration to all financial institutions inside the corporate limits of the City of Denton, as permitted by state laws. D. Designation of Individuals Upon being awarded the contract, the depository Bank shall designate, in writing, an individual to be the official contact person for all correspondence. The City of Denton shall do the same. The Depository Bank shall be responsible for training and communicating the terms of this contract to Bank employees. XII. SUBMISSION CHECK A. "Bid" with fill-in-the-blank format. Please note, all of the requirements/information requested in this proposal must be met for full consideration. B. Sample bank statement (must show city requirements IX B & E). C. Availability of funds schedule. D. Money Market Fund prospectus if applicable. E. Sample monthly collateral report. F. Sample safekeeping agreement with the Federal Reserve Bank for collateral. G. Sample safekeeping agreement with Depository Bank for the City's investment securities. H. Sample controlled disbursement agreement. 1. Sample wire agreement. J. Sample stop payment agreement. Page 22of 23 K. Sample account analysis statement. L. Annual financial statement of the Bank along with the last two quarterly FDIC call reports M. Reference list of agencies currently using your institutions lock-box services. N. Reference list of agencies currently using your bank depository services 0. Reference list of agencies currently using your credit card services P. Sample daily lock-box transmission reports. Q. Sample monthly lock-box activity reports. R. Transition schedule. S. A demonstration of all on-line and desktop depository services as outlined in this bid will be required during the bank presentations noted in section II. Calendar of Events. T. Complete Exhibit B, Bank Bid Questionnaire. Page 23of 23 S:\Agenda Item Shared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doe DEPOSITORY SERVICES CONTRACT STATE OF TEXAS § COUNTY OF DENTON § ARTICLE 1. SELECTION AND TERM , hereinafter referred to as "Depository" at , Denton, Texas , a bank located in the State of Texas and the deposits of which are insured by the Federal Deposit Insurance Corporation, was duly selected in compliance with the terms and provisions of Tex. Loc. Gov't Code Ch. 105, Tex. Loc. Gov't Code §131.903, Tex. Tax Code §6.09, and all other applicable laws, by the City Council of the City of Denton located in Denton County, Texas hereinafter referred to as "City" to serve as the depository of the funds of City. The action of the City Council was duly taken and the Depository is to serve pursuant to this Contract for a period of two years, beginning June 1, 2006 and ending May 31, 2008. Provided, however, that this Contract may be extended for up to three additional one-year terms at the request of the Depository and upon the approval of and sole discretion of the City through its City Council. Depository also agrees that the City shall have up to 90 days from the date the City Council designates it as the City's depository to transfer all municipal funds covered by this Contract from its current depository to Depository. Under no circumstances shall the term of this Contract extend beyond May 31, 2011 or the maximum term allowed by law. It may be sooner terminated by Depository's failure to adhere to all requirements of this Contract. ARTICLE 2. OBLIGATIONS OF DEPOSITORY A. The Depository shall pledge to the City and deposit in safekeeping and trust with another bank acceptable to the City approved security as defined or referred to in Tex. Loc. Gov't Code §105.031, et. seq. and the Collateral for Public Funds Act, Chapter Act, Chapter 2257 of the Texas Government Code, in an amount of market value sufficiently adequate to protect all funds of City on deposit with Depository during the term of this Contract, but not less than that required by Tex. Loc. Gov't Code Ch. 105, Tex. Gov't Code §2257.022, the City's Investment Policy, and all other applicable laws. Depository shall execute the Depository Pledge Agreement attached to this Contract as Exhibit "A" and made a part hereof as if written word for word herein. All deposits, including accrued interest, are to be fully collateralized in accordance with the above terms. Depository will be responsible for determining daily if the collateral is sufficient in accordance with this Contract, the Depositories for Municipal Funds Act, the Collateral for Public Funds Act, and all other applicable laws. Pledged securities will be listed as an addendum to the Depository Contract in Exhibit "A". Pledged securities will be held by the Federal Home Loan Bank in joint custody with the City and the Depository. Provided further that: 1. The approved securities shall be of the kind defined or referred to in Tex. Loc. Gov't Code §105.031 and Chapter 2257 of the Texas Government Code and acceptable to the City, and the amount pledged shall be in a total market value as directed at any time by the City Council in accordance with standards acceptable to the City Council and as required by applicable laws. S:\Agenda Item Shared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc 2. The conditions of the pledge of approved securities required by this Contract are that the Depository shall credit the account(s) of City with the full amount or all State of Texas Warrants presented to Depository for the account of the City no later than the banking day next following the day of Depository's receipt of such warrants; that Depository shall faithfully perform all duties and obligations devolving upon Depository by law and this Contract, including specifically the duty to collect with diligence checks, drafts, and demands for money deposited with Depository; pay upon presentation all checks or drafts drawn on order of the City in accordance with its orders duly entered according to the laws of Texas; pay any time deposit or certificate of deposit of City in Depository upon maturity or after the period of notice required, and faithfully keep, account for as required by law; and faithfully pay over, at maturity or on demand, as City may elect, to any successor depository all balances of funds the City then has on deposit with Depository. 3. The pledge of approved securities required by this Contract shall be a continuing pledge, ceasing only upon the later of the termination of this Contract or the fulfillment by Depository of all of its duties and obligations arising out of this Contract (and a continuing security interest in favor of City shall attach immediately upon any such pledge to all proceeds of sale and to all substitutions, replacements, and exchanges of such securities, and in no event shall such continuing security interest be voided by any act of Depository). But notwithstanding the foregoing Depository shall have the right, with the consent City, to purchase and sell and substitute or replace, any and all of the approved securities pledged pursuant to this Contract with other approved securities, provided that all of the other conditions of this Contract are adhered to by Depository, and such pledge shall be in addition to all other remedies available in law to City. 4. This Contract shall become binding upon City and Depository only upon approval by the City Council of the Contract and the application attached hereto. To the extent of conflict, if any there be, between this Contract and the application, Exhibit "B", and any of the attached exhibits, the terms of this Contract shall control. Nothing in the terms and conditions of the application (Exhibit `B"), including without limitation, any indemnity or venue clauses, shall control or reduce the obligations of Depository under this Contract, it being the intent of the parties that the terms of this Contract shall control and be binding over any conflicting provision in the exhibits. All conflicts in the exhibits shall be resolved in accordance with Article 2 A.10 of this Contract. 5. Upon execution, Depository shall immediately furnish or cause to be furnished to City original and valid safekeeping or trust receipts issued by the bank holding the approved securities pledged pursuant to this Contract, marked by the holding bank on their face to show the pledge and market value as required above. City shall promptly furnish two executed copies of this Contract, photocopies of all such receipts, and photocopies of new receipts for substitutions and additions and written notice of deletion, when made, to Depository. 6. On the execution date of this Depository Contract the Depository agrees to pledge an amount that is equal to funds anticipated to be on deposit from day to day. Page 2 of 7 S:\Agenda Item Shared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc 7. Any closing or failure of Depository, or any event deemed by City to constitute a closing or failure of Depository, shall be deemed to have vested full title to all approved securities pledged pursuant to this Depository Contract in City. City is hereby empowered to take possession of and sell any and all of such pledged approved securities, to the extent not forbidden by law, whether in safekeeping at another bank or in possession of City, and City is specifically so empowered by Depository. 8. Depository agrees that it will act, and the City hereby designates Depository as its primary depository, with both parties agreeing that all funds herein shall be deposited and invested in compliance with all applicable local, state, and federal laws including, but not limited to, the Depository for Municipal Funds Act, Chapter 105, §105.001-105.092 of the Texas Government Code (V.A.T.C.S.); the Collateral for Public Funds Act, Chapter 2257, §2257.001-2257.083 of the Texas Government Code (V.A.T.C.S.); the Public Funds Investment Act, Chapter 2256, §2256.001-2256.104 of the Texas Government Code (V.A.T.C.S.); the City Charter and Code of Ordinances of the City of Denton, Texas as amended; and the Investment Policy adopted by the City. It is also the intention of the parties hereto, in conformance with the above-mentioned laws, that the City shall remain at maximum flexibility to invest its funds prudently to earn the highest rate of return consistent with the City's Investment Policy and all other applicable requirements of the law. 9. Depository shall, in return for the City depositing its funds in the Depository, provide professional banking services as an independent contractor for the charges as set forth in the Depository's application dated which application is attached hereto as Exhibit "B" and made a part of this Contract for all purposes. 10. Depository shall perform all those banking services set forth in Exhibit "A"; its application attached hereto as Exhibit "B"; and the City's Request for Applications for the Performance of Depository Services, which is attached hereto as Exhibit "C" and made a part of this Contract for all purposes. In case of conflicts between this Depository Contract and the aforementioned exhibits or in case of a conflict between such exhibits, the conflict will be resolved as follows: First, this Depository Contract controls over all exhibits; second, Exhibit "A" controls over Exhibits "B" and "C"; third, Exhibit "C" controls over Exhibits "B". 11. Depository shall (a) keep the municipal funds covered by this Contract, (b) perform the duties and obligations imposed on the Depository by law and under this Contract, (c) pay on presentation all checks drawn and personally payable on a demand deposit account with the Depository, (d) pay all transfers properly payable as directed by the designated employee or officer chosen by the city, (e) provide and maintain security at the level required by Tex. Gov't Code Ch. 2257, and (f) account for municipal funds as required by law. B. Depository warrants that each computer, hardware, software, and firmware product or equipment utilized by Depository to deliver financial and depository services under this Contract shall be able to accurately process date data (including, but not limited to, calculating, comparing, and sequencing) from, into, and between the twentieth and twenty-first centuries, including leap year calculations, when used in accordance with the product Page 3 of 7 S:\Agenda Item Shared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc documentation provided by Depository, provided that all other interfaces (e.g., hardware, software, firmware) used in combination with such product properly exchange data with it. If this Contract requires that the Depository's equipment or products must perform as a system in accordance with the foregoing warranty, then that warranty shall apply to Depository's products and equipment as a system. The duration of this warranty and the remedies available to the City for breach of this warranty shall be as defined in, and subject to, the terms and limitations of Depository's standard commercial warranty or warranties contained in the contract(s), provided that, notwithstanding any provision to the contrary in such commercial warranty or warranties, the remedies available to City under this warranty shall include repair or replacement of any Depository-utilized product or equipment whose non-compliance is discovered and made known to Depository in writing and Depository, in accordance with Article 6 hereof, shall indemnify City against losses caused by any breach of this warranty. Nothing in this warranty shall be construed to limit any rights or remedies the City may otherwise have under this Contract with respect to defects other than Year 2000 performance. ARTICLE 3. ADDITIONAL SECURITY Subsequent to the execution date of this Contract, should the amount of deposit exceed that which is initially pledged, said amount will be increased, and the safekeeping receipts of the additional securities will be provided in accordance with Paragraph A(5) of Article 2 herein. ARTICLE 4. ADDITIONAL DEPOSITORIES This Contract shall be non-exclusive and the City reserves the right to designate secondary or additional depositories and to, if necessary, enter into Depository Agreements for other City funds with other banks in Denton County or adjacent counties whenever the interests of the City may demand. The City also reserves the right to contract with other financial institutions under separate contract if the City determines that additional financial services are necessary in the administration, collection, investment, and/or transfer of municipal funds. ARTICLE 5. LEVEL OF COMPETENCY Depository and its officers and employees performing services hereunder agree that in the performance of these depository services, they shall be responsible to the level of competency and shall use the same degree of skill and care as presently maintained by other practicing professionals performing the same or similar types of work in the State of Texas. ARTICLE 6. INDEMNIFICATION Depository shall indemnify and hold harmless the City, its officers, agents, and employees from loss, damage, liability, or expenses on account of any claims, damages, or injuries, whatsoever to all persons including employees of Depository and City, including without limitation breach of the Year 2000 Warranty set forth in Article 2.B., which may arise from any negligence, error, or omission in the performance of this Contract on the part of Depository or any breach of its obligations or duties under this Contract, and Depository shall defend, at its own expense, any suits or other proceedings brought against the City, its officers, agents, and employees, and shall pay any expenses to satisfy all judgments or losses whatsoever which may be incurred or rendered against them or the City. Page 4 of 7 S AAgenda Item Shared\2006 Agenda Foldes\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc ARTICLE 7. EXHIBITS All exhibits attached to this Contract are considered to be integral parts of same, and Depository will fully comply with the terms and conditions of same. ARTICLE 8. VENUE For purposes of determining venue and the law governing this Contract, services performed under this Contract are performed in the City and County of Denton, Texas. Any suit or dispute regarding this Contract shall be decided and settled in a court of competent jurisdiction sitting in Denton County, Texas. ARTICLE 9. COUNTERPARTS This Contract may be executed in any number of counterparts, and each such counterpart shall be deemed for all purposes to have the same effect as if all parties to this Contract had signed one and the same signature page of this Contract. ARTICLE 10. TERMINATION A. The City and Depository shall, as a matter of right without necessity of default on the part of City or Depository, terminate this Contract at any time by giving the City or Depository 90 days prior notice in writing. Should Depository default in any of its obligations to City under this Contract, City shall give Depository notice of default in writing, and Depository shall have 30 days from receipt of the notice to correct the default. If Depository fails to remedy default within this time, City, at its sole option, may cancel this Contract and Depository shall be fully responsible to pay City any and all damages caused by its default. Depository shall be paid for all services satisfactorily performed in accordance with this Contract up to date of any termination hereunder. Depository's filing of a petition in bankruptcy or being declared insolvent by a federal bank regulatory agency shall be considered a material breach of this Contract. Nothing herein shall deprive City of any other remedies in law and equity to enforce the terms, conditions, and obligations of this Contract including, but not limited to, instituting suit for damages or, in the alternative, specific performance of this Contract. B. In the event of termination, Depository shall fully cooperate with the City to transfer all municipal funds to the new depository designated by the City. ARTICLE 11. NOTICES All notices required under this Contract must be given by certified mail or registered mail, addressed to the proper party, at the following addresses: CITY: DEPOSITORY: Howard Martin, City Manager City of Denton 215 E. McKinney Denton, Texas 76201 Page 5 of 7 SAAgenda Item Shared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc Either party may change the address to which notice is sent by giving the other party notice of the new address in the manner provided in this section. ARTICLE 12. ASSIGNMENT Depository shall not assign any interest in this Contract and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of the City thereto. ARTICLE 13. BINDING EFFECT This Contract shall be binding upon and enure to the effect of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Contract. ARTICLE 14. ENTIRE AGREEMENT This Contract and the attached exhibits constitute and express the entire agreement between the parties and shall not be amended or modified except by written instrument signed by both parties. ARTICLE 15. AUTHORITY TO CONTRACT Depository hereby does represent to the City that its officer or officers who have executed this Contract have full and complete capacity and authority to execute a binding Depository Contract which is effective, for all purposes, as to all services to be provided and all terms and obligations under this Contract. ARTICLE 16. DUPLICATE ORIGINALS This Contract is executed by the City and the Depository in three copies, all of which shall be deemed originals. IN WITNESS of which this Contract has been executed on this the of by the duly authorized officers of Depository and City. Page 6 of 7 S:\Agenda Item Sbared\2006 Agenda Folders\May 2006\May 2-2006\2006 Bank Depository RFP\3482 Exhibit A.2006 Depository Contract.doc CITY OF DENTON: By: Date: Name (Print): Euline Brock Title: Mayor Address: City of Denton 215 E. McKinney Denton, Texas 76201 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Depository By: Date: Authorized Signature Name (Print): Title: Page 7 of 7 CITY OF DENTON BANK BID QUESTIONNAIRE 1. This bank has indicated that it has an on-line banking system. a. Is this an internet application or will it require software be loaded on our computers. b. Will we have full authorization to add/delete users as needed or will it require bank personell assistance? c. Does the system allow the City to date wire transfers for a future date? If so, how many days? d. Does the system allow us to view images of the checks that have cleared? e. Does the system transactions show real-time or are they the prior business days activity? d. What is the bank's procedures for failed wire transfers. i.e., the receiving bank is rejecting the wire. 2 Safekeeping a. Will we have direct contact with the third party custodian or will we deal with a bank representative when purchasing securities or for questions? b. Explain the bank's process for purchases & failed securities and timeframes associated with each? c. Will we be notified of called securities? If so, how? Technology 3. Do you provide support services or programming resources for check and credit card transactions or cash management software applications? If you do provide these services, are they in-house or sub-contracted services? 4. Do you operate your own Internet Transaction Gateway? If yes, do you support connections from other Gateway Providers? If no, what Gateway Providers do you support? And do you use an intermediary merchant service? And if so, Who? 1 5. Are you currently providing a coordinated, full-service banking solution, similar to what has been outlined in the City of Denton bid documents, to any government agencies the size of, or possibly larger than, the City of Denton? 6. The City has 17 credit card merchant I.d.s, and 4 Internet merchant I.d.s, does your bank have the capability to provide the location name or merchant I.D. on the bank statement for these deposits made on the City's control bank account? 7. Lock Box Services a. Does your bank have the ability to process payments - without a stub? -Multiple stubs and one check? - a letter or copy of a stub or other correspondence? b. Does your bank have the capability of identifying and rejecting accounts noted as "cash only"? For example, if we generate a file and sent it to them each month with account numbers to reject, would they be able to incorporate that into their system where they could reject the payments? c. Will the transmission file be available for our posting by 3:00 pm.? d. What various methods do you have of transmitting the payment file? i.e, internet, bulletin board, e-mail e. Will itemized reports with statistics of payments received, accepted/rejected etc. be available? Can we expect them as softcopy and/or hardcopy? f, Can you include check numbers on the reports? Payor information? g. Do you currently have an on-line imaging system where we can view checks in cases of discrepancies? h. The Tax lockbox service requested bids for the imaging of checks. Will the transmission file be available along with the payment file each day? 2 i. Will you be able to provide a "local" contact for the Utility Lockbox account? If so, please identify the persons name, contact information and location. j. In most cases, can payment research be completed in one business day? k. Do you have next day delivery of correspondence, rejects and reports? 1. How many other organizations the size of the City of Denton do you provide lockbox services for? 8. ATM Services a. Please explain if your organization has opted to not bid for the ATM services? 9. Basic Banking Services a. Can you bank provide serialized deposit slips which are coded by location? b. Can you provide the location name or Id on the corresponding deposits made on the City's control concentration bank account? c. Can you provide payor identification on the City's control concentration bank account for all wire transfers & ACH Transactions? e. Do you have the ability to provide interactive bank statements? d. Using the Positive Pay system, can you provide an outstanding check list? 3 10 Customer Service a. Will you assign a primary contact to the City? 11 If awarded the contract, will thirty days be sufficient time to transfer all the services we have discussed today. If not, what would be an appropriate time-frame. How many staff members would be dedicated to assisting us in the transfer of services? 4 EXHIBIT 5 FY 2004-2005 Bank Depository Fees Service Analysis Average Average Group Account 201 Number of Average Charge for Total Charge 000000641547252 Units Unit Price Service Total Units Unit Price for Service Account Services FDIC Fee 5,262,614 1 34.97 63,151,369 13.85 419.60 Negative Collected Balance Fee 8,868 1 44.49 106,410 17.00 533.85 Account Maintenance 6 10 60.00 72 120.00 720.00 ZBA Maintenance Master Account 1 - - 12 - - ZBA Maintenance Sub Account 5 - - 60 - - Additional DDA Statement 4 - - 48 - - Banking Center Services - - - - - - Branch Credits Posted 314 1 235.75 3,772 9.00 2,829.00 Branch Deposit Immediate Verify 13,142 - - 157,700 - - Branch Deposit Post Verify 1,345 - - 16,135 - - Night Drop Armored Car Deposit 371,882 - - 4,462,589 - - Branch Order Currency Strap 18 - - 218 - - Branch Order Coin Roll 70 - - 842 - - Branch Deposit in Non Std Bag 4 - - 52 - - Commercial Check Cashing 38 - - 458 - - Vault Services - - - - - - Vault Deposit 395 1 296.25 4,740 6.00 3,555.00 Vault Deposit Dollars 673 - - 8,074 - - Vault Deposit Roller Coin 29 - - 346 - - Vault Dep Non Std Strap Notes 20,829 - - 249,942 - - Vault Deposit Std Strap Notes 142 - - 1,700 - - Vault Order Currency Std Strap 13 - - 158 - - Vault Standard Orders 6 - - 74 - - Vault Order Coin Rolls 164 - - 1,968 - - Vault Order Non Standard Strap 248 - - 2,976 - - Vault Activity Report Faxed 1 1 0.75 9 9.00 9.00 Vault Deposit Adjustment 1 - - 8 - - Retail Lockbox - - - - - - Rib Maintenance 2 250 500.00 24 3,000.00 6,000.00 Rib Image Capture Maintenance 2 23 45.83 22 275.00 550.00 Rib Image Archive Maintenance 1 23 22.92 11 275.00 275.00 Rib Payment 17,782 0 4,089.78 213,380 2.76 49,077.40 Rib Multiples 4,502 0 945.33 54,019 2.52 11,343.99 Rib Courier Mail Prep 2 25 50.00 24 300.00 600.00 Rib Correspondence 109 0 22.89 1,308 2.52 274.68 Rib Check Image Item 2,656 0 79.68 31,873 0.33 956.19 Rib Sannable Doc Capture 817 0 24.52 9,806 0.33 294.18 Rib Cash Processing 3 9 25.83 31 110.00 310.00 Rib Stop File Reject 3 0 0.50 30 2.00 6.00 Rib File Transmission 2 100 200.00 24 1,200.00 2,400.00 Rib Image Transmission Maint 1 23 22.92 11 275.00 275.00 Rib Image Transmission Record 1,446 0 43.38 17,352 0.33 520.56 Rib CD ROM 1 18 18.33 11 220.00 220.00 Rib Image Storage First Month 2,070 0 62.10 24,838 0.30 745.14 1 FY 2004-2005 Bank Depository Fees Service Analysis Average Average Group Account 201 Number of Average Charge for Total Charge 000000641547252 Units Unit Price Service Total Units Unit Price for Service Rlb Unprocessable Item 160 0 40.06 1,923 3.00 480.75 Rlb Courrier Deposit 15 10 151.67 182 120.00 1,820.00 Wholesale Lockbox - - - - - - WLB Maintenance 1 105 105.00 12 1,260.00 1,260.00 WLB Item With Copy 9 0 3.50 105 3.60 42.00 WLB Courier Mail Prep 1 25 25.00 12 300.00 300.00 WLB Image Transmission Maint 0 2 2.08 1 25.00 25.00 WLB Image Transmission Record 4 0 0.11 44 0.03 1.32 Depository Services - - - - - - Credits Posted 1,069 0 106.91 12,829 1.20 1,282.90 Dep Checks On Us 3,557 0 160.05 42,679 0.54 1,920.56 Dep Checks Clearinghouse 2,672 0 120.24 32,063 0.54 1,442.84 Dep Checks Local City 1,370 0 61.67 16,444 0.54 739.98 Dep Checks Local City Selects 126 0 5.69 1,517 0.50 68.27 Dep Checks Local RCPC 12,385 0 557.34 148,623 0.54 6,688.04 Dep Checks Local RCPC Selects 5,650 0 254.25 67,800 0.50 3,051.00 Dep Checks Local Selects Other 39 0 1.75 467 0.50 21.02 Dep Checks In District City 692 0 31.14 8,304 0.54 373.68 Dep Checks in District RCPC 413 0 18.60 4,960 0.54 223.20 Dep Checks IN District Country 88 0 3.96 1,057 0.50 47.57 Dep Checks National Frb City 952 0 42.83 11,420 0.50 513.90 Dep Checks National Frb Other 3,742 0 168.37 44,899 0.54 2,020.46 Dep Checks High Dollar Group 30 0 1.36 363 0.54 16.34 Dep Checks Encoding 31,712 - - 380,549 - - Dep Checks MICR Reject Repair 0 0 0.01 1 0.10 0.10 Dep Checks Deposit Corrections 3 - - 36 - - Dep Return Items Returned 109 3 273.13 1,311 30.00 3,277.50 Dep Return Alternate Address 1 1 1.13 9 10.50 13.50 Dep Return Redeposit Reclear 159 2 318.00 1,908 24.00 3,816.00 Disbursement Services - - - - - - Checks/Debits Posted 171 0 17.10 2,052 1.20 205.20 Cont Disb Funding Transfer 45 - - 538 - - Checks Photocopy Retrieval 18 2 72.33 217 28.00 868.00 Checks Photocopy Retrieval 13 1 39.50 158 9.00 474.00 Cont Disb Maintenance 1 75 75.00 12 900.00 900.00 Cont Disb Checks Paid 2,832 0 283.24 33,989 1.20 3,398.90 Overdraft NSF Item Paid - - - - - - One Net Cs Stop Photo Maint 1 - - 12 - - Commercial Check Cashing 90 - - 1,084 - - Stop Payment 0 2 1.67 1 20.00 20.00 One Net Ck Svcs Image Maint 1 15 15.00 12 180.00 180.00 One Net Ck Svcs Image Retrieve 9 1 9.42 113 12.00 113.00 One Net Ck Svcs Image Retrieve - - - - - - Reconciliation Services - - - - - - 2 FY 2004-2005 Bank Depository Fees Service Analysis Average Average Group Account 201 Number of Average Charge for Total Charge Units Unit Price Service Total Units Unit Price for Service 000000641547252 Full Recon With POS Pay Maint 1 - - 12 - - Full Recon With POS Pay Items 2,813 0 168.80 33,760 0.72 2,025.60 Check Exception Return 1 5 8.75 7 60.00 105.00 Image Capture Per Item 203 0 6.08 2,432 0.03 72.96 Transaction Image Capture 2,611 0 78.32 31,328 0.33 939.84 CD ROM Media Fee 1 - - 12 - - CD ROM Maintenance 1 30 30.00 12 360.00 360.00 CD ROM Check Safekeeping 2,813 0 28.13 33,760 0.12 337.60 Incoming Trans with Recon 30 - - 361 - - ARP Reject Key Entry - - - - - - ARP Manual Key Entry 1 0 0.92 11 4.00 11.00 ARP Outgoing Transmission 1 - - 11 - - ARP Exception Items 2 1 3.00 24 12.00 36.00 Funds Transfer Services - - - - - - One Net Outgoing Wire 19 4 113.50 227 48.00 1,362.00 Electronic Fed Debit S/T 12 3 71.50 143 30.00 858.00 Electronic Book Debit S/T 2 2 8.67 26 20.00 104.00 Electronic Book Debit Repair 0 1 0.58 1 7.00 7.00 One Net Book Transfer 3 2 11.00 33 28.00 132.00 Incoming Wire 3 3 16.67 40 40.00 200.00 Fed Credit S/T 1 2 6.25 15 20.00 75.00 Fed Credit Repair 0 1 2.08 5 15.00 25.00 Book Credit 0 - - 2 - - Mail Advice 0 0 0.33 2 2.00 4.00 Automated Clearing House - - - - - - One Net ACH Maintenance 2 40 73.33 22 480.00 880.00 Net ACH Debit Originated 1,385 0 83.08 16,616 0.72 996.96 Net ACH Credit Originated 1,939 0 116.31 23,262 0.72 1,395.72 ACH Debit Received 82 0 8.18 981 1.20 98.10 ACH Addenda Records 7 0 0.73 88 0.30 8.80 ACH Return 9 2 18.00 108 24.00 216.00 ACH Return Fax Notification 9 1 7.65 108 10.20 91.80 ACH Notification of Change 2 1 4.00 24 16.00 48.00 ACH Fax Noc 2 1 1.70 24 6.80 20.40 Electronic Data Interchange - - - - - - R$ EDI Fax Report - - - - - - Information Services - - - - - - TOC Previous Day BAI Maint 1 - - 12 - - TOC Intraday BAI Maintenance 1 - - 12 - - TOC Previous Day BAI Acct 5 15 75.00 60 180.00 900.00 TOC Previous Day BAI Item 4,549 0 272.95 54,590 0.72 3,275.40 TOC Intraday BAI Account 4 15 65.00 52 180.00 780.00 TOC Intraday BAI Item 3,245 0 194.72 38,944 0.72 2,336.64 TOC Special Report Maintenance 1 35 35.00 12 420.00 420.00 3 FY 2004-2005 Bank Depository Fees Service Analysis Average Average Group Account 201 Number of Average Charge for Total Charge 000000641547252 Units Unit Price Service Total Units Unit Price for Service International Services - - - - - - Foreign Check Deposit (Cad) 0 1 1.46 5 14.00 17.50 Foreign Check Return (Cad) 0 2 2.08 1 25.00 25.00 Securities Services - - - - - - Receive OR Deliver - - - - - - Receipts Held 0 21 21.00 3 252.00 252.00 Maturities - - - - - - Online Deposit/Withdrawal 1 43 43.33 6 520.00 520.00 Manual Deposit/Withdrawal 0 8 7.50 2 90.00 90.00 Receipts Held Fed 1 68 68.00 9 816.00 816.00 Document Reprints and Faxes 0 1 0.83 1 10.00 10.00 Service Charge Amount 11,447.74 137,372.90 4 FY 2004-2005 Bank Depository Fees Service na ysis Average Average Group Account 201 Number of Average Charge for Total Charge 000000641547252 Units Unit Price Service Total Units Unit Price for Service Full Recon With POS Pay Maint 1 - - 12 _ - Full Recon With POS Pay Items 2,813 0 168.80 33,760 0.72 2,025.60 Check Exception Return 1 5 8.75 7 60.00 105.00 Image Capture Per Item 203 0 6.08 2,432 0.03 72.96 Transaction Image Capture 2,611 0 78.32 31,328 0.33 939.84 CD ROM Media Fee 1 - - 12 _ _ CD ROM Maintenance 1 30 30.00 12 360.00 360.00 CD ROM Check Safekeeping 2,813 0 28.13 33,760 0.12 337.60 Incoming Trans with Recon 30 - - 361 - - ARP Reject Key Entry - - - _ - _ ARP Manual Key Entry 1 0 0.92 11 4.00 11.00 ARP Outgoing Transmission 1 - - 11 - - ARP Exception Items 2 1 3.00 24 12.00 36.00 Funds Transfer Services - - - _ One Net Outgoing Wire 19 4 113.50 227 48.00 1,362.00 Electronic Fed Debit S/T 12 3 71.50 143 30.00 858.00 Electronic Book Debit S/T 2 2 8.67 26 20.00 104.00 Electronic Book Debit Repair 0 1 0.58 1 7.00 7.00 One Net Book Transfer 3 2 11.00 33 28.00 132.00 Incoming Wire 3 3 16.67 40 40.00 200.00 Fed Credit S/T 1 2 6.25 15 20.00 75.00 Fed Credit Repair 0 1 2.08 5 15.00 25.00 Book Credit 0 - - 2 Mail Advice 0 0 0.33 2 2.00 4.00 Automated Clearing House - - - _ _ _ One Net ACH Maintenance 2 40 73.33 22 480.00 880.00 Net ACH Debit Originated 1,385 0 83.08 16,616 0.72 996.96 Net ACH Credit Originated 1,939 0 116.31 23,262 0.72 1,395.72 ACH Debit Received 82 0 8.18 981 1.20 98.10 ACH Addenda Records 7 0 0.73 88 0.30 8.80 ACH Return 9 2 18.00 108 24.00 216.00 ACH Return Fax Notification 9 1 7.65 108 10.20 91.80 ACH Notification of Change 2 1 4.00 24 16.00 48.00 ACH Fax Noc 2 1 1.70 24 6.80 20.40 Electronic Data Interchange R$ EDI Fax Report Information Services - - - _ TOC Previous Day BAI Maint 1 - - 12 TOC Intraday BAI Maintenance 1 - - 12 _ _ TOC Previous Day BAI Acct 5 15 75.00 60 180.00 900.00 TOC Previous Day BAI Item 4,549 0 272.95 54,590 0.72 3,275.40 TOC Intraday BAI Account 4 15 65.00 52 180.00 780.00 TOC Intraday BAI Item 3,245 0 194.72 38,944 0.72 2,336.64 TOC Special Report Maintenance 1 35 35.00 12 420.00 420.00 FY 2004-2005 Bank Depository Fees Service Analysis Average Average Group Account 201 Number of Average Charge for Total Charge 000000641547252 Units Unit Price Service Total Units Unit Price for Service International Services - - - - - _ Foreign Check Deposit (Cad) 0 1 1.46 5 14.00 17.50 Foreign Check Return (Cad) 0 2 2.08 1 25.00 25.00 Securities Services Receive OR Deliver - - - _ _ - Receipts Held 0 21 21.00 3 252.00 252.00 Maturities - - - _ _ _ Online Deposit/Withdrawal 1 43 43.33 6 520.00 520.00 Manual Deposit/Withdrawal 0 8 7.50 2 90.00 90.00 Receipts Held Fed 1 68 68.00 9 816.00 816.00 Document Reprints and Faxes 0 1 0.83 1 10.00 10.00 Service Charge Amount 11,447.74 137,372.90 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Utilities C M: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance abandoning and vacating a 0.5562 acre public drainage easement from Windjammer, LTD. to City of Denton recorded by County Clerk file number 2005-38412 of the Real Property Records of Denton County, Texas, and a 0.0794 acre public drainage easement from Windjammer, LTD. to City of Denton recorded by County Clerk file number 2005-38416 of the Real Property Records of Denton County, Texas, in the M.E.P. & P.R.R. Survey, Abstract No. 950; and declaring an effective date. The Public Utilities Board recommends approval (7-0.) BACKGROUND A few years ago, Cinemark USA, Inc. started developing the tract of land known today as the Cinemark Addition at Unicorn Lake. During the platting & design process, the drainage requirements where evaluated by the DRC "Development Review Committee" Drainage Engineer. The drainage study and requirements where discussed and defined with the applicant's engineer. Upon final review of the drainage study, the DRC Drainage Engineer requested the offsite drainage easements on the adjacent property to capture runoff and centralize the drainage into the Cinemark drainage system. Since then the adjacent property known today as Windriver Office Park, has developed and constructed an improved drainage system that connects into the Cinemark drainage system. The owner of Windriver Office Park is requesting the abandonment of the extraneous drainage easements so that it may continue its onsite development. OPTIONS 1. Approve the Ordinance 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff endorses the approval of the draft Ordinance ESTIMATED PROJECT SCHEDULE Developer has completed the required drainage improvements, and City staff has inspected and accepted the improvements. PRIOR ACTION/REVIEW This item was presented to the Public Utilities Board at their April 24th regular meeting. The Public Utilities Board recommends approval 7-0. 1 FISCAL INFORMATION N/A BID INFORMATION Not applicable EXHIBITS 1. Location Map 2. Ordinance 3. PUB Minutes Respectfully submitted, Jimmy D. Coulter Director of Water/Wastewater Water Administration Prepared by: Mark A. Laird Right-of-way Agent Real Estate and Capital Support 2 LOCATION MAP C04 oRq OE4v z O ry ! I DENTON REGIONAL r Q O lij MEDICAL CENTER Z `-,~c T J t R LAKE O iJJ z n/ .J \N IIVIJ fC I`V CR <E RD v 0 ~ I BRIERCLIFF w w J BRIGHTO=N DR. . IJ I- NjC~ N LqKe U EI R D ~ z ® N.T.S. Exhibit 1 NORTH SAOur Documents\Ordinances1061Windjammer Abandonment Ord:doc ORDINANCE NO. AN ORDINANCE ABANDONING AND VACATING A 0.5562 ACRE PUBLIC DRAINAGE EASEMENT FROM WINDJAMMER, LTD.. TO CITY OF DENTON RECORDED BY COUNTY CLERK FILE NUMBER 2005-38412 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND A 0.0794 ACRE PUBLIC DRAINAGE EASEMENT FROM WINDJAMMER, LTD. TO CITY OF DENTON RECORDED BY COUNTY CLERK FILE NUMBER 2005-38416 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, IN THE M.E.P. & P.R.R. SURVEY, ABSTRACT NO. 950; AND _ DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton has received a request from the underlying fee simple owner, WINDJAMMER, LTD., for the abandonment of 0.5562 acre public drainage easement, and for the abandonment of a 0.0794 acre public drainage easement tract, all being particularly described and depicted in Exhibit "A" attached hereto and made a part hereof by. reference (the "Abandonment Area"); and, WHEREAS, staff has reviewed the requested abandonment of the Abandoned Area and has recommended approval; and, WHEREAS, the City Council of the City of Denton, Texas has determined that the it is in the public interest to abandon the Abandonment Area, and the City's interest therein, to the underlying fee owner, and, WHEREAS, notwithstanding any of the above, the City of Denton hereby retains all easement and street right-of-way rights in all other easement and street right-of-way tracts, whether conveyed by other instruments or by plat, in which the easement tracts described for abandonment herein cross and or overlap; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations and findings contained in the preamble of this ordinance are incorporated herein by reference. The Abandonment Area is hereby permanently abandoned with all of the City's right, title and interests being quit claimed to the Owner. A certified copy of this ordinance may be recorded in the Real Property Records of Denton County, Texas to evidence this abandonment and quit claim. j SECTION 2. This ordinance shall become effective immediately upon its passage and approval. Exhibit 2 PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDE CITY A TORNEY BY: Page 2 EXHIBIT A WINDRIVER ABANDONMENT AREA OFFICE PARK CINEMARK ADDTION AT UNICORN LAKE I i I i - - - N.T.S. NORTH I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 24, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order at 9:00 a.m. on Monday, April 24, 2006 in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek, Phil Gallivan, John Baines 11 and Phil Gallivan 12 13 Ex Officio Member: 14 Howard Martin, Interim City Manager 15 16 ITEMS FOR INDIVIDUAL CONSIDERATION: 17 18 5) Consider adoption of an ordinance abandoning and vacating a 0.5562 acre public drainage 19 easement from Windjammer, LTD. to City of Denton recorded by County Clerk file number 20 2005-38412 of the Real Property Records of Denton County, Texas, and a 0.0794 acre public 21 drainage easement from Windjammer, LTD. to City of Denton recorded by County Clerk file 22 number 2005-38416 of the Real Property Records of Denton County, Texas, in the M.E.P. & 23 P.R.R. Survey, Abstract No. 950; and declaring an effective date. 24 25 Paul Williamson, Right-of-Way Agent, stated that the original drainage requirements had 26 changed due to additional development with an improved drainage system. 27 28 Hopkins asked if the new drainage structure was pavement. 29 30 Williamson stated it was comprised of underground pipes and concrete inlets. 31 32 Gallivan moved to approve with a second from Cheek. The motion was approved by a vote 33 of 7-0. 34 Exhibit 3 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Utilities - Environmental Quality Division CM: Howard Martin, 8232 SUBJECT Consider adoption of an Ordinance authorizing the City Manager to approve an amendment to the Memorandum of Understanding (MOU) between the City of Denton and the University of North Texas dated May 1, 2003 to extend the terms of the MOU for an additional three year term; said MOU providing for collaborative research projects; providing for the expenditure of funds therefore; and declaring an effective date. The Public Utilities Board recommends approval (7-0.) BACKGROUND The City of Denton and the University of North Texas (UNT) have performed a number of collaborative projects related to water, wastewater, and mosquito assessment/control. Most of these projects are small (less than $25,000) and are performed on an "as needed" basis. Although the partnership between UNT and the City of Denton has been a great benefit for both entities, substantial personnel time is required to work out the terms for each of these individual research agreements. City staff recognized that this process could be streamlined if both entities adopting a MOU that is applicable to every small project initiated by the City of Denton. A MOU was drafted, reviewed, and approved by the City of Denton and the University of North Texas during May 2003. The 2003 MOU was designed to expire in 3 years, but contained a clause to extend the term of the MOU if mutually agreed upon by both parties. The purpose of this agenda item is to extend the MOU for another 3 years under the current terms and conditions. The amendment included as Exhibit 1 documents this extension, and extends the scope of the MOU to include the entire UNT system, and not just the Institute of Applied Sciences. The following key features of the MOU are still relevant: • Individual projects under this MOU may not exceed $25,000 per project and may not exceed $100,000 per year. • The adoption of this MOU streamlines the process and reduces the personnel resources needed for both the City of Denton and UNT. • The adoption of this MOU will allow the City of Denton to rapidly request and obtain research support from UNT for time sensitive research needs. • The MOU outlines an indemnification clause and other legal/risk related topics that the legal and risk management departments at both the City of Denton and UNT have reviewed. • UNT has agreed to allocate only five percent of the total project cost for project overhead. The usual overhead rate for UNT is 45%. The adoption of the MOU will represent a substantial savings to the City of Denton for research conducted through UNT. OPTIONS 1. Approve the amendment to the MOU as currently written 2. Suggest changes to the MOU amendment. Staff will need to negotiate the terms of the changes with UNT staff 3. Deny approval of the amendment. RECOMMENDATION Staff recommends approval of the MOU amendment. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utility Board unanimously approved the MOU during the April 11, 2003 meeting. The City Council unanimously approved the MOU as a consent agenda item during the May 13, 2003 meeting. This item was presented to the Public Utilities Board at their April 24, 2006 regular meeting. The Public Utilities Board recommends approval 7-0. FISCAL INFORMATION This project will be funded from various budgeted accounts depending upon the project. EXHIBITS 1. Memorandum of Understanding: Amendment 1 2. Memorandum of Understanding 3. Ordinance 4. PUB Minutes Respectfully prepared and submitted: Y Kenneth Banks Manager, Div. of Environmental Quality MEMORANDUM OF UNDERSTANDING Amendment No. I The Memorandum of Understanding ("MOU") made and entered into on May 1, 2003 by and between the City of Denton, Texas, a Texas home rule municipal corporation (the "City") and the University of North Texas, a state university ("UNT") is hereby amended by the mutual agreement of the parties as follows: The preamble and Agreement are changed to delete all references to UNT's Institute of Applied Sciences (IAS) and to replace with UNT. Paragraph 6 is hereby amended to extend the term of this agreement for an additional three years and shall read: 6. Terms and Termination. This MOU shall commence on the effective date below and shall continue in full force and effect for a period of three (3) years. Either party may terminate the agreement at any time by giving not less than thirty (30) days advance written notice to the other party. Termination or cancellation shall not affect the rights and obligations of the parties accrued prior to termination. The City shall be liable for all expenses incurred and all non- cancelable commitments made prior to UNT's receipt of the notice of termination and shall pay UNT for same within thirty (30) days of final invoice. On receipt of payment in full for work performed, UNT shall deliver the results of all previously unreported work in such form as it exists. Paragraph 7 is hereby amended to correct the UNT and City of Denton mailing addresses, and shall read: 7. Payment. For the services for projects including counsel, reports, and other items delivered hereunder, City shall pay UNT on a cost-reimbursable basis in an amount not to exceed $25,000 per Statement of Work. In the performance of work under this MOU, UNT agrees to expend funds in accordance with the budget established for each specific Statement of Work issued under this MOU. UNT shall submit monthly invoices to the City within thirty (30) days for costs incurred during the preceding period for each Statement of Work. All invoices shall be sent to: City of Denton/ Attention Ken Banks 901-A Texas Street Denton, Texas 76209 The City agrees to reimburse UNT for the costs billed within thirty (30) days of receipt of invoice. All payments shall be sent to: Page 1 of 3 Exhibit I Office of Research Services University of North Texas P.O. Box 305250 Denton, Texas 76203-5250 Paragraph 11 is hereby amended to read: 11. Notices. All notices or other communications required or permitted under this Agreement given by either parry to the other shall be in writing and shall be sent by and addressed to the following individuals: For UNT: Kristi Lemmon Director of Sponsored Projects Office of Research Services University of North Texas P.O. Box 305250 Denton, Texas 76203 lemmongunt.edu 940.565.3940 (voice) 940.565.4277 (fax) For City: City Manager, City of Denton City Hall 601 E. McKinney Denton, Texas 76201 940.349.8596 (fax) All other provisions remain unchanged and in effect. IN WITNESS WHEREOF, the parties have executed this modification to be effective this the 1st day of May, 2006. UNIVERSITY OF NORTH TEXAS By: Phillip C. Diebel Vice President for Finance and Business Affairs Date: Page 2 of 3 CITY OF DENTON, TEXAS By: Howard Martin ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO FORM: HERBERT L. PROUTY, CITY ATTORNEY By: Page 3 of 3 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is made and entered into as of the effective date provided herein below, by and between the City of Denton, Texas, a Texas home rule municipal corporation (the "City") and The University of North Texas, a state university ("UNT") and UNT's Institute of Applied Sciences (IAS) acting herein, by and through their duly authorized representatives. WHEREAS, the City and UNT have established an ongoing relationship whereby UNT IAS has performed valuable professional research services for the City; and WHEREAS, the City and UNT IAS desire to memorialize this relationship in this Memorandum of Understanding to continue to provide for such research services; Now, Therefore, in consideration of the covenants and agreements herein contained, the parties agree as follows: Subject to the terms and conditions contained herein, the City will contract with UNT and UNT IAS will provide, as an independent contractor, research services as provided in this MOU and in subsequent statements of work as provided herein. 1. Purpose. The purpose of this MOU is to streamline the process for conducting collaborative research projects that are initiated by the City. This MOU formalizes ongoing collaborative research efforts that have existed between the City and UNT IAS for a number of years. Many of these efforts have involved relatively small (less than $25,000.00) research projects and have primarily involved the use of graduate students conducting research of use to the City and UNT IAS. 2. Scope. Any research project that meets the following criteria will be subject to this MOU: a. It is initiated by the City or jointly between the City and UNT IAS and b. The total project cost is $25,000.00 or less; and c. A scope of work will be determined prior to the initiation of each project and agreed upon by both parties. 3. Statement of Work. Before initiating a project the City will submit to UNT a request for a Statement of Work outlining the scope of work for the project. Within a reasonable time thereafter, UNT shall submit to the City a proposal for the Statement of Work. Such proposal shall be approved by the UNT Office of Research Services and shall set forth the Scope of Work, estimated time of completion and estimated cost. The cost of the project shall be on a cost-reimbursable basis and shall not exceed $25,000.00 (the "Project Cost"). UNT shall allocate five percent (5%) of the total Project Cost for overhead. The City, upon approval of UNT proposal shall notify UNT, per Section 11, of Exhibit 2 the City's desire to proceed with each Statement of Work. Each Statement of Work shall specify the Project Cost and the Term. 4. Performance. UNT shall use all reasonable efforts to perform the services and deliver the reports and other deliverables specified in each Statement of Work within the stated time as agreed to between the parties. 5. Key Personnel. UNT shall provide a Project Director for each Statement of Work. Should the Project Director be removed from employment at UNT for any reason, the parties shall mutually agree to his/her replacement by other UNT personnel. 6. Terms and Termination. This MOU shall commence on the effective date hereof and shall continue in full force and effect for a period of three (3) years. Either parry may terminate the agreement at any time by giving not less than thirty (30) days advance written notice to the other parry. Termination or cancellation shall not affect the rights and obligations of the parties accrued prior to termination. The City shall be liable for all expenses incurred and all non-cancelable commitments made prior to UNT's receipt of the notice of termination and shall pay UNT for same within thirty (30) days of final invoice. On receipt of payment in full for work performed, UNT shall deliver the results of all previously unreported work in such form as it exists. 7. Payment. For the services for projects including counsel, reports, and other items delivered hereunder, City shall pay UNT on a cost-reimbursable basis in an amount not to exceed $25,000 per Statement of Work not to exceed a total of $100,000 per year. In the performance of work under this MOU, UNT agrees to expend funds in accordance with the budget established for each specific Statement of Work issued under this MOU. UNT shall submit monthly invoices to the City within thirty (30) days for costs incurred during the preceding period for each Statement of Work. All invoices shall be sent to: City of Denton/Accounts Payable 215 E McKinney St Denton, Texas 76201 The City agrees to reimburse UNT for the costs billed within thirty (30) days of receipt of invoice. All payments shall be sent to: Office of Grant Accounting University of North Texas P.O. Box 311128 Denton, TX 76203 8. Equipment. Ownership of all permanent and expendable equipment purchased by UNT under this Agreement shall become the sole property of UNT at the time of purchase, and title thereto shall vest solely in UNT. 9. Rights in Data, Copyrights and Publication. Data (which is herein defined as including, but not limited to, software, writings, sound recordings, pictorial reproductions, drawings or other graphical representations, reports, blueprints and works of any similar nature, whether or not copyrighted or copyrightable) first produced or composed by UNT employees in the performance of work under this MOU and any applicable Statement of Work shall be the property of the City, provided however, that the City shall grant to UNT a royalty-free, non-exclusive license to reproduce, modify and use all such data for its own purposes. UNT shall be free to publish the results of work under this MOU and any applicable Statement of Work. Title to and the right to determine the disposition of any copyrights on publications relating to the performance of the work hereunder shall remain with UNT, who shall have the sole right to determine the disposition of those copyrights. 10. Inventions and Patent Rights. Title to any invention or discovery made or conceived in the performance of research by UNT under this MOU and any applicable Statement of Work shall remain with UNT, which shall have the sole right to determine the disposition of any patents or other rights resulting there from, provided however that upon issue of any patent on any such invention or discovery, the City shall have a sixty (60) day option for an exclusive license to practice the invention for a period of time and at a royalty rate to be negotiated. 11. Notices. All notices under this Agreement given by either party to the other shall be in writing and shall be sent by and addressed to the following individuals: For UNT: By Courier: Reata Busby Reata Busby Associate Vice Provost for Research Avenue C @ Chestnut Office of Research Services Administration Bldg. University of North Texas Room 160 P.O. Box 305250 Denton, TX 76203 Denton, Texas 76203-5250 940.565.3940 rbusbynunt. edu 940.565.3940 (voice) 940.565.4277 (fax) For City: City Manager, City of Denton City Hall 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8596 12. Independent Contractor. UNT is an independent contractor and shall be free to exercise its discretion and independent judgment as to the method and means of performance of the services contracted for by the City. UNT employees shall in no sense be considered employees of the City and neither UNT nor City personnel will, by virtue of this MOU or any Statement of Work, be entitled or eligible, by reason of the contractual relationship hereby created, to participate in any benefits or privileges given or extended by either party to its employees. This agreement is not an agreement of joint venture, joint enterprise, partnership or employment. 13. Non-Indemnification. Unless otherwise required by law, neither party shall by reason of this MOU, or any applicable Statement of Work, be obligated to defend, assume the cost of defense, hold harmless, or indemnify the other from any liability to third parties for loss of or damage to property, death, or bodily injury arising out of or connected with the work under this MOU or any applicable Statement of Work. 14. Governing Law and Venue. This MOU and any applicable Statement of Work are fully performable in Denton County, Texas and shall be governed by and construed in accordance with the laws of the State of Texas. 15. Publicity. Neither party to this MOU or any applicable Statement of Work may use the name of the other in news releases, publicity, advertising, or product promotion without the prior written consent of the other, except that UNT may include the City's name in reports as required by state and federal mandates. 16. Assignment. Neither party may assign their rights and/or duties hereunder without the written permission of the other party. 17. Amendments. This MOU may be extended, renewed, or otherwise amended at any time by the mutual written consent of the parties. No modification of this MOU or waiver of the terms or conditions hereof shall be binding upon either party hereto unless approved in writing by an authorized representative, or shall be effected by the acknowledgement or acceptance of purchase order forms containing other or different terms and conditions whether or not signed by an authorized representative of the party. 18. Successors and Assigns. This MOU shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and, except as otherwise provided in this MOU, their assigns. 19. Captions. The captions to the various provisions of this MOU are for informational purposes only and shall not alter the substance of the terms and conditions of this MOU. 20. Alternative Dispute Resolution. Chapter 2260 of the Texas Government Code establishes a dispute resolution process for contracts involving goods, services and certain types of projects. If Chapter 2260 applies to this Agreement, the parties must use the statutory dispute resolution process to attempt to resolve disputes arising under this Agreement. Signed to be effective this the day of , 2003. UNIVERSITY OF NORTH TEXAS By Phillip C. Diebel Vice President for Finance & Business Affairs Date ATTEST: APPROVED AS TO FORM: CITY OF DENTON, TEXAS BY: Michael A. Conduff ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: SA0ur Documents\Ordinances1061UNT MOU- Research Projects.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY DENTON AND THE UNIVERSITY OF NORTH TEXAS DATED MAY 1, 2003 TO EXTEND THE TERMS OF THE MOU FOR AN ADDITIONAL THREE YEAR TERM; SAID MOU PROVIDING FOR COLLABORATIVE RESEARCH PROJECTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on May 1, 2003 the City of Denton and the University of North Texas ("UNT") entered into that certain Memorandum of Understanding providing for collaborative research projects related to water, wastewater, and mosquito assessment/control (the "MOU"); and WHEREAS, the City and UNT desire to enter into an Amendment to the MOU in substantially the same form as the Amendment attached hereto and made a part hereof as Exhibit A (the "Amendment'); and WHEREAS, the City Council finds that the Amendment 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 City Manager, or his designee, is hereby authorized to execute the Amendment on behalf of the City and make the expenditure of funds and carry out the rights and duties of the City under the Amendment. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Page 1 Exhibit 3 APPROVED AS TO LEGAL FORM: EDWIN M. S ER, CITY ATTORNEY BY: Page 2 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 24, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order at 9:00 a.m. on Monday, April 24, 2006 in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek, Phil Gallivan, John Baines 11 and Phil Gallivan 12 13 Ex Officio Member: 14 Howard Martin, Interim City Manager 15 16 CONSENT AGENDA: 17 The Public Utilities Board has received background information, staff's recommendations, and 18 has had an opportunity to raise questions regarding these items prior to consideration. 19 20 Board Member Phil Gallivan pulled item 2 for individual consideration. 21 22 1) Consider recommending adoption of an Ordinance of the City of Denton, Texas authorizing 23 the expenditure of funds for payments by the City of Denton for electrical energy 24 transmission fees to those cities and utilities providing energy transmission services to the 25 City of Denton; and providing an effective date in the total amount of $302,270. 26 27 3) Consider recommending adoption of an Ordinance authorizing the City Manager to approve 28 an amendment to the Memorandum of Understanding (MOU) between the City of Denton 29 and the University of North Texas dated May 1, 2003 to extend the terms of the MOU for an 30 additional three year term; said MOU providing for collaborative research projects; providing 31 for the expenditure of funds therefore; and declaring an effective date. 32 33 Board Member George Hopkins moved to approved Item 1 and 3 with a second from 34 Gallivan. The motion was approved by a vote of 7-0. Exhibit 4 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Parks and Recreation CM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to submit an application under the National School Lunch Act to obtain funding for the 2006 Summer Food Service Program; if such funding is granted, the City Manager is authorized to execute the Summer Food Service Program agreement with the Texas Health and Human Services Commission and execute a contract with the Denton Independent School District and all additional documents and agreements, as required; authorizing the expenditure of funds to administer the program; and providing an effective date. The Parks, Recreation and Beautification Board recommends approval with a vote of 4-0. BACKGROUND: This free lunch program is designed to serve children in areas of low-income populations during the summer months when traditional school lunch programs are not in effect. This program is sponsored and funded by the United States Department of Agriculture, Food and Nutrition Service. This Summer Food Service Program is a continuation of the free lunch program that is offered during the school year. The Texas Department of Human Services has made an effort through outreach to increase the number of cities participating in the program. Cold sack lunches will be prepared by the Denton Independent School District and served at the following locations: 1) MLK Recreation Center, 2) Phoenix Park, 3) Denia Park, 4) Civic Center Park/Center, 5) Owsley Neighborhood, 6) Bonita Vista Apartments, 7) Village East Apartments, 8) Fred Moore Park, 9) Rivera Elementary Summer School, 10) Rayzor Elementary Summer School, 11) Houston Elementary Summer School, 12) McMath Middle School, 13) Mack Park Apartments, 14) Ryan High School, 15) Rosemont Apartments, 16) Clayton Estates. The total estimated cost for this program is approximately $110,000, which is reimbursed by the Texas Health and Human Services Commission. The Parks and Recreation Department first offered the Summer Food Service Program in 1992 at Denia Park, Phoenix Park, Fred Moore Park, Civic Center Park, and two summer school locations. At these six locations, a total of 14,776 lunches were served to children 1 through 18 years of age. The Summer Food Service Program has now expanded to 15 locations and in 2005, there were 34,201 lunches served at a cost of $75,655. OPTIONS Council may approve the contracts with the Texas Health and Human Services Commission and Special Nutrition Programs and Denton Independent School District in its entirety, deny the request or ask staff to make modifications. -1- RECOMMENDATION Staff recommends approval of the proposed ordinance. ESTIMATED SCHEDULE OF PROJECT Summer lunches will be served from May 30, 2006, to August 4, 2006. No lunches will be served on Tuesday, July 4, 2006, in observance of the Independence Day Holiday. PRIOR ACTION/REVIEW The Denton Independent School District recommended approval to contract the preparation of cold sack lunches for this program when the issue was presented to their board on March 28, 2006. The program is scheduled for implementation on May 30, 2006. FISCAL INFORMATION Texas Health and Human Services Commission will reimburse all costs associated with the program, which administers this grant. BID INFORMATION Not applicable. EXHIBITS 1. Ordinance 2. DISD Agreement - Texas Health and Human Services Commission - Certificate of Authority 3. Parks, Recreation and Beautification Board minutes Respectfully submitted: Janet Fitzgerald, Director Parks and Recreation Department AW, = Kathy Schaeffer, Program Area Manager Parks and Recreation Department -2- S:10ur Documentsl0rdinances1061Summcr Food Service 2006.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION UNDER THE NATIONAL SCHOOL LUNCH ACT TO OBTAIN FUNDING FOR THE 2006 SUMMER FOOD SERVICE PROGRAM; IF SUCH FUNDING IS GRANTED, THE CITY MANAGER IS AUTHORIZED TO EXECUTE THE SUMMER FOOD SERVICE PROGRAM AGREEMENT WITH THE TEXAS DEPARTMENT OF HUMAN SERVICES AND EXECUTE A CONTRACT WITH THE DENTON INDEPENDENT SCHOOL DISTRICT AND ALL ADDITIONAL DOCUMENTS AND AGREEMENTS, AS REQUIRED; AUTHORIZING THE EXPENDITURE OF FUNDS TO ADMINISTER THE PROGRAM; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas will submit an application for funding under the National School Lunch Act, to the Texas Department of Human Services for the purpose of making meals available to eligible children at the City's Summer Action Site programs; and WHEREAS, pursuant to the grant, if received, the City will contract with the Denton Independent School District to provide the meals at the various sites; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to execute, on behalf of the City, an application for funding under the National School Lunch Act, and if funded, the Summer Food Service Program Agreement with the Texas Department of Human Services, a copy of which is attached hereto as Exhibit "A" and incorporated by reference herein, along with any other documents and certificates necessary to obtain such funding. SECTION 2. The City Manager is hereby authorized to execute a contract with the Denton Independent School District, substantially in the form of the contract which is attached to and made a part of this ordinance for all purposes, to provide meals for eligible individuals at the various sites, and such other documents and certifications as are necessary to carry out the 2006 Summer Food Service Program, if such program is funded per the terms set forth in Section 1 above, and to handle all fiscal and administrative matters relating to the application and the program. SECTION 3. The expenditure of funds necessary to administer the 2006 Summer Food Service Program is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and .approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR Exhibit 1 i ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, Cl Y B, °l r~ :wr PAGE 2 State of Texas County of Denton AGREEMENT TO FURNISH FOOD SERVICE CITY OF DENTON and DENTON INDEPENDENT SCHOOL DISTRICT FOOD SERVICES THIS AGREEMENT is made and entered into by and between the Denton 'Independent School District and the City of Denton both of whom are local governmental entities authorized to enter into interlocal agreements under Chapter 791 of the Texas Government Code. (Vernon 1994) Whereas, the interlocal agreement contemplates the performance of function or services that a each party to this contract is authorized to perform individually. h g Whereas, that the City of Denton is making payment under this agreement which it is funding from payments from current revenue; whereas, the payments provided by the City of Denton are in an amount that fairly compensates the Denton Independent School District for the services that it is performing. Witnesseth: I. Provision of Meals Denton Independent School District agrees to supply unitized meals inclusive of milk and juice to the City of Denton Parks and Recreation Department. The City of Denton Parks and Recreation Department will pick up meals at designated food preparation site and package coolers with meals and deliver to approved SFSP sites. Breakfast $ 0.00 each Lunches $ L90 each Snacks $ 0.00 each Supper $ 0.00 each Exhibit 2 `II. Menu Records It is further agreed that the Denton Independent School District pursuant to the provisions of the Summer Food Service Program Regulations, will assure that said meals meet the minimum requirements as to nutritive value and content as outlined in the U.S.D.A.'s sponsor Meal Preparation Handbook, and will maintain full and accurate recordings of such, including the following: 1. Menu Records, including amount of food prepared. Meals, including daily number of meals delivered by type. III. Retention of Records These records must be reported to the institution promptly at the end of each week. Denton Independent School District agrees also to retain records required under the preceding clause for- a period of three years and 90 days after the end of the contract period. If audits, claims or litigation have not been resolved, all records must retain beyond the required time period until all issues are resolved in accordance with the Summer Food Service Program Agreement between The City of Denton and The Texas Department of Human Services.e IV. Compliance With Immigration Laws l - The Denton Independent School District agrees to comply with the requirements of the Immigration Reform Control Act of 1986 regarding employment verification and retention of verification forms for any individuals hired after November `6, "1986 who will perform labor or services under this contract. 1 V. Audit The Denton Independent School District agrees to allow for purposes of audit, examination, excerpt, and transcription: the USDA, the Comptroller of the United States, D.S. and any of 'their authorized representatives to have access to any of the contractor's books, documents, papers, and records that, are pertinent to the contract. VI. Energy Efficiency The Denton Independent School District agrees to comply with the required mandatory standards and policies concerning energy efficiency contained in the Texas Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94-163). -VII. Remedies For Breach of Contract The Denton Independent School District agrees that except for small purchase contracts, it will comply with and enforce provisions that allow for administrative, contractual, or legal remedies if contractors violate or breach contract terms, and any appropriate sanctions and penalties. VIA. Compliance With Labor Regulations The Denton Independent School District agrees to be in compliance with Section 103 of the contract Work Hours and Safety Standards Act (40 USC 327-330) as supplemented by the 3 Department of Labor regulations (29 CFR, Part 5). Under this Act, contractors must compute the wages of mechanics and laborers on the basis of standard workday of eight hours and a standard workweek of 40 hours. Work that exceeds the standards must be compensated at least 1'/z times the basic pay rate for overtime hours worked. These requirements do not apply to the purchase of supplies or materials ordinarily available on the open market or contracts for transportation. IX. Equal Employment Opportunity The Denton Independent School District agrees to comply with Executive Order 11246 entitled "Equal Employment Opportunity" as amended by Executive Order 11375 and as supplemented in Department of Labor regulations (41CFR, Part 60). X. Compliance With Laws The Denton Independent School District agrees to comply with all other applicable laws, including without limitation, any additional applicable Federal Laws or regulations contained in the Sumner Food Program Agreement between the City of Denton and the Texas Department of Human Services. XI. Remedy For Breach If the Denton Independent School District fails to provide services in accordance with the. provisions of this contract, the City of Denton may, upon written notice of default to the contractor, immediately terminate the whole or part of this contract.. XIL Consideration The City of Denton agrees to pay Denton Independent School District for all meals ordered on daily basis at the rate agreed upon in this contract. XM. Term The agreement shall be effective as of May 30, 2006 and shall have the same term as the Summer Food Program Agreement between the City of Denton and the Texas Department of Human Services. It may be terminated by notice in writing given by any party hereto to the other parties at least 30 days prior to the bate of termination. XIV. Venue This agreement shall be interpreted in accordance with the laws of the State of Texas. Any litigation filed with regard to this contract shall be tried in a court of competent jurisdiction setting in Denton County, Texas- IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the dates indicted below:. Agreed to this date Agreed to this date U o~~~ D Sponsor Official DISD Sponsor Title: City Manager Title School Board President The location of the food preparation site will be: Rayzor Elementary School 1400 Malone Denton, Texas 76207 APPROVED AS TO LEGAL FORM: EDWIN M. 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Members absent: Ross Richardson and Reginald Heard. Chairman Teresa Andress called the meeting to order at 6:00 p.m. Awards and Recognition - None Approvals of Minutes of March 6, 2006 - Minutes were approved as distributed. ACTION ITEMS Public Art Policy - Janet reviewed the Public Art Policy that had been discussed at the March board meeting. The draft policy under Section V Funding - Public Funding reads, "Annually, commencing with program year 2007, at least 2.4% of the total Hotel Occupancy Tax revenues will be allocated for public arts projects as allowed under Texas Tax Code 351.103 c." Janet said it had been recommended to change the policy wording from "can" to "will". Jo expressed her concerns that the committee proposed the policy as worded and recommended the policy not changed from "will" to "can". ACTION: Jo made a motion to recommend approval of the Public Art Policy as drafted with the wording "will" and support of an ordinance, which establish the Public Art Committee as an advisory committee of the Parks, Recreation and Beautification Board. Patrice seconded the motion and it was approved with a vote of 4-0. Request to Sale Alcohol at Cinco de Mayo - Janet said the Cinco de Mayo is requesting to sale alcohol at the Cinco de Mayo Celebration as they had in previous years. The event is to be held in Civic Center Park on May 6, 2006. Geri asked if proper security would be at the event. Janet said yes and that there haven't been any security issues at the previous events and that the same level of security will be provided at this year's event. ACTION: Geri made a motion to approve the Cinco de Mayo request to sale alcohol in the Civic Center Park on May 6, 2006. Patrice seconded the motion and it was approved with a vote of 4-0. Summer Food Lunch Program - Janet said the Summer Food Program began in 1992 and is funded by a federal grant program. The Summer Food Service Program has 16 locations and in 2005, there were 34,201 lunches served at a cost of $85,655. ACTION: Patrice made a motion to support the Summer Food Service Program and Geri seconded the motion. The motion was approved with a vote of 4-0. Exhibit 3 DRAFT Resolution of Support for STEP Projects - Bob said the Board is being asked to consider adoption of a resolution of support for the submission of a Statewide Transportation Enhancement Program (STEP) grant applications to TXDOT to provide improved pedestrian/bike infrastructure and enhanced streetscapes adjacent to the proposed Downtown Multi-Modal Station, Hickory Street Corridor and Arts Walk and the Denton Branch Rail Trail Bridges for two bridges over Pecan Creek and Loop 288 on the Denton Branch Rail Trail. ACTION: Geri made a motion to support the resolution of support for the STEP projects and Jo seconded the motion. The motion was passed with a vote of 4-0. DISCUSSION ITEMS Eureka Signage - Janet said that at the January 10th Committee on the Environment Ed Soph was asked to work with Dr. Kenny Banks, of the City of Denton, on making changes to the signage and website on the Eureka Playground at South Lakes Park. The Board discussed existing signs and staff reviewed the wording. The Board came to a consensus that the existing signs and website information was adequate and would not recommend any changes at this time. DIRECTOR'S REPORT Project Status Report Civic Center Pool Enhancements - Bob said the pool enhancement bids were too high and it will be re-bid in May. Construction is anticipated to begin as soon as the pool closes in the fall. Clear Creek Natural Heritage Area - Bob announced that an anonymous donation for a matching grant has been made in the amount of $100,000 to construct a program and maintenance building and hat $100,000 in CIP funds will be moved forward for design and infrastructure construction. Keep Denton Beautiful - There were no questions on the distributed report. Bob reminded the Board that the Redbud Festival is this weekend on the Courthouse on the Square lawn. Bob informed the Board that the Dog Park dedication is scheduled for May 8th. He asked the board if they would like a tour of the Dog Park, Rail Trail and the Clear Creek Heritage Area. The board said they would like a tour and asked staff to poll the board for a convenient date. There being no further business, the meeting was adjourned at 6:50 p.m. AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Fire Department ACM: Jon Fortune SUBJECT Consider adoption of an ordinance amending, repealing and replacing Ordinance No. 2004-206 of the City of Denton, Texas, establishing fees to be charged for emergency ambulance services and standby emergency ambulance services in the City as provided for in Sec. 27-102 of Article IV of Chapter 27 "Vehicles For Hire" of the Code of Ordinances of the City of Denton, Texas; repealing all ordinances in conflict herewith; providing a severability clause; and providing for an effective date. BACKGROUND In February 2006, the City approved to outsource patient care reporting and emergency medical service (EMS) billing. New procedures for documenting patient care and processing billing were implemented on April 1, 2006. Preparing for the transition gave us the opportunity to review our costs to provide service and our current fee schedule. The last change in emergency ambulance fees was in July 2004 when resident fees increased from $400 to $475 and non-resident fees increased from $475 to $600. Cost for supplies and mileage remained the same. A comprehensive comparison survey and cost for service study was presented to Council on April 18, 2006. Changes in the flat rate coding were outlined (Resident / Non-resident to BLS - Basic Life Support / ALS - Advanced Life Support) and a proposed fee schedule was presented. PRIOR ACTION / REVIEW (Council, Boards, Commissions) Council approved the last change in EMS fees in July 2004. In February 2006, the Council approved the outsourcing of Patient Care Reporting and EMS Billing. On April 18, 2006, Council gave direction to proceed with the implementation of the proposed fee schedule. FISCAL INFORMATION The new fee schedule will result in estimated revenue of $1.54M for FY06-07. EXIBITS ➢ Existing Ordinance 2004-206 ➢ Proposed Ordinance Respectfully Submitted: 0 & 11,WW_ Ross Chadwick Fire Chief Page 1 of 1 SA0ur Dmumcn1A(hdinonc WAambc1nn= service fm.dx 49 ORDINANCE NO. AN ORDINANCE AMENDING, REPEALING AND REPLACING ORDINANCE NO. 2002- 244 OF THE CITY OF DENTON, TEXAS, ESTABLISHING FEES TO BE CHARGED FOR EMERGENCY AMBULANCE SERVICES AND STANDBY EMERGENCY AMBULANCE SERVICES IN THE CITY AS PROVIDED FOR IN SEC. 27-102 OF ARTICLE IV OF CHAPTER 27 "VEHICLES FOR HIRE" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton has analyzed and studied its fees for emergency ambulance services; and WHEREAS, the City of Denton should operate a cost-effective and efficient emergency medical service; and WHEREAS, the City of Denton desires to maintain its Health Care Finance Administration (HCFA) Method #4; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Ordinance No. 2002-244, enacted by the City Council on August, 2002, is hereby amended, repealed and replaced by hereby approving and establishing the following fees for emergency ambulance services in the City pursuant to Sec. 27-102 of the Code of Ordinances as follows: 1. A basic transportation fee of Four Hundred Seventy Five Dollars ($475.00) will be charged each patient who is a resident of the City of Denton transported from the scene of an emergency to an appropriate medical care facility. In addition, a fee of Nine Dollars ($9.00) per mile from the incident location to the receiving hospital will be charged. 2. A basic transportation fee of Six Hundred Dollars ($600.00) will be charged each patient who is a non-resident of the City of Denton transported from the scene of an emergency to an appropriate medical care facility. In addition, a fee of Nine Dollars ($9.00) per mile from the incident location to the receiving hospital will be charged. 3. A $100.00 care delivered fee will be charged for calls requiring administration of an intravenous solution (IV) or one (1) medication without transport to a medical facility. 4. A $200.00 care delivered fee will be charged for calls requiring administration of an intravenous solution (IV) and one (1) medication, plus one or more treatments including, but not limited to, specialized airways, chest decompression, and/or additional medications without transport to a medical facility. S:50ur Dmu=ms%0rdia nce D4%a ahu]mm servim fmAm 5. Additional fees, if incurred, shall be charged as follows: a. $45.00 fee for bandaging/splinting. b. $45.00 fee for cardiac monitoring. C. $45.00 fee for cardioversion. d. $80.00 fee for administering Cardio Pulmonary Resuscitation (CPR). e. $45.00 fee for defibrillation. f. $45.00 fee for diagnostic 12-lead EKG. g. $20.00 fee for glucometer, blood sugar. h. $45.00 fee for pacing, non-invasive. i. $50.00 fee for carrying a patient down stairs. j. Fees for additional supplies, medications and/or disposable goods administered to each patient will be charged and billed at twenty percent (20%) over the cost charged to Denton Fire Department for said supplies. k. Fees for additional supplies, medications and/or disposable goods administered to each patient who refuses transport or is transported by means other than a City of Denton ambulance will be charged and billed at twenty percent (20%) over the cost charged to the Denton Fire Department for said supplies. 1. A fee of $25.00 will be charged for each medical records request made by attorneys' offices or other agency which requires an affidavit. SECTION 2. That the City shall charge an Emergency Ambulance Standby fee of One Hundred Dollars ($100.00) per hour with a four (4) hour minimum for the use of any City of Denton emergency ambulance for standby at special events such as football games, rodeos, concerts, etc. If any patient is transported, the other fees in the ordinance shall be charged, to the patient, as incurred. SECTION 3. That a copy of this schedule of fees and charges shall be maintained on file in the office of the City Secretary. SECTION 4. That all ordinance or parts of ordinance in force when the provisions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. Page 2of3 S,AOur O(eom RisWWinnnm)00.1nmbu)wce wp =f dw SECTION 5. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton, Texas, hereby declares that they would have enacted such remaining portions despite any such invalidity. SECTION 6. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2004. ~GG EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: d&4 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 43~~ Page 3 of 3 Sd0D-me ,0,dn,.,cesV06Aa bul-, - ice feesm'd.doc ORDINANCE NO. AN ORDINANCE REPEALING AND REPLACING ORDINANCE NO. 2004-206 OF THE CITY OF DENTON, TEXAS, ESTABLISHING FEES TO BE CHARGED FOR EMERGENCY AMBULANCE SERVICES AND STANDBY EMERGENCY AMBULANCE SERVICES IN THE CITY AS PROVIDED FOR IN SEC. 27-102 OF ARTICLE IV OF CHAPTER 27 "VEHICLES FOR HIRE" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton has analyzed and studied its fees for emergency ambulance services; and WHEREAS, the City of Denton should operate a cost-effective and efficient emergency medical service; and WHEREAS, the City of Denton desires to maintain its Health Care Finance Administration (HCFA) Method #4; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Ordinance No. 2004-206, enacted by the City Council on July 20, 2004, is hereby repealed and replaced by hereby approving and establishing the following fees for emergency ambulance services in the City pursuant to Sec. 27-102 of the Code of Ordinances as follows: a. Advanced Life Support ("ALS") and Basic Life Support ("BLS") service base rates, fees for additional supplies, medications and/or disposable goods administered to each patient, and fees associated additional personnel and response codes will be charged: ALS1 Emergency Base Rate 855.00 ALS1 Non-Emergency Base Rate 855.00 ALS2 Emergency Base Rate 900.00 BLS Emergency Base Rate 787.00 BLS Emergency Base Rate in ALS unit 787.00 BLS Non-Emergency Base Rate 787.00 BLS Non-Emergency Base Rate in ALS unit 787.00 ALS Supplies - Airway Management 94.00 ALS Supplies - Autopulse 472.00 ALS Supplies - Capnography 156.00 ALS Supplies - Defibrillation 210.00 ALS Supplies - EKG Pads 36.75 ALS Supplies - External Pacing 210.00 ALS Supplies - Intubation 100.00 ALS Supplies - IO Infusion 262.25 ALS Supplies - IV Therapy 258.00 Sd0D-me ,0,dn,.,cesV06Aa bul-, - ice feesm'd.doc ALS Supplies - Mast Trousers 42.00 ALS Supplies - Needle Thoracostomy 31.50 ALS Supplies - Surgical Airway 314.75 ALS Supplies - Routine Disposable 52.50 BLS Supplies - Routine Disposable 52.50 BLS Supplies - Defibrillation (AED) 42.00 Bone Injection Adult 250.00 Bone Injection Pedi 250.00 Blood Glucose Test 45.64 EKG Interpretation 260.00 ETC02 Bulb Adult 32.50 ETC02 Bulb Pedi 32.50 Oxygen, Administration and Supplies/hr. 119.00 Nu-Trake Surg. Airway 300.00 Pulse Oximeter 94.50 Spinal Immobilization 184.50 Extra Attend - CPR 147.00 Extra Attend - Stairs 50.00 Dispatch Fee 94.00 Emergency Rate 94.00 b. A mileage rate of $15.00 per mile from the incident location to the receiving hospital will be charged. A charge of $100.00 for BLS treatment provided with no transport to a medical facility, and $200.00 for ALS treatment provided with no transport to a medical facility will be administered. c. Fees for medications administered and IV treatments performed to each patient will be charged as follows: Drug - Acetaminophen 5 mL 2.25 Drug - Activated Charcoal 20 cc PO 12.50 Drug - Adenosine 6 mg 66.62 Drug - Albuterol (.83%) 3 mL 19.83 Drug - Albuterol/Ipratropium 36.00 Drug - Aminophyllin 250 mg 88.25 Drug - Aminodarone HCl 150 mg/3 mL 335.71 Drug - Apirin Chewable 81 mg 2.10 Drug - Atropine Sulfate 0.3 mg 14.69 Drug - Butorphanol 2 mg 60.00 Drug - Calcium Chloride 1 gm/ 10 mL 7.75 Drug - Clonodine 0.1 mg 11.00 Drug - Dexamethasone 4 mg 44.00 Drug - Dextrose 25% (1325) 29.50 Drug - Dextrose 50% (1350) 18.88 Drug - Diazepan 5 mg 26.23 Page 2 of 5 Sd0D-me ,0,dn,.,cesV06Aa bul-, service feesm'd.doc Drug - Diltiazem HCl 61.88 Drug - Diphenhydramine 50 mg 9.44 Drug - Dobutamine, per 250 mg 54.55 Drug - Dopamine 22.03 Drug - Enalaprilat 44.00 Drug - EPI 1 mg/10 mL IV 9.32 Drug - EPI 1 mg/cc IV 15.74 Drug - EPI Pen 60.00 Drug - EPI Pen Pedi 60.00 Drug - Etomidate 1 Vial 33.57 Drug - Flumazenil 60.00 Drug - Furosemide 20 mg 20.72 Drug - Glucagon 1 mg 136.38 Drug - Haloperidol 5 mg 26.25 Drug - Ibuprofen for Children 4 oz 2.25 Drug - Ipecac 5 cc 5.25 Drug - Ipratropium Bromide .18 mg 5.25 Drug - Isoproterenol HCl .5% 20.98 Drug - Ketorlac 15 mg 48.00 Drug - Labetolol 10 mg 44.59 Drug - Lidocaine Drip 1 gm/25 mL 52.50 Drug - Lidocaine HCl (2%) 50 mg 26.23 Drug - Lorazepam 2 mg 43.01 Drug - Mag Sulfate, per 500 mg 22.03 Drug - Mannitol 104.91 Drug - Meperidine HCl 100 mg 35.50 Drug - Methylprednisolone 125 mg 41.44 Drug - Midazolam HCl 1 mg 41.96 Drug - Morphine Sulfate, 10 mg 58.75 Drug - Nalbuphine HCl 10 mg 24.65 Drug - Naloxone Img IV 12.65 Drug - Nitrous Oxide 80.00 Drug - Norcuron 10 mg 94.42 Drug - NTG Spray 0.4 mg SL 6.99 Drug - Oral Glucose Gel 15 g 6.29 Drug - Oxytocin 10 IU 19.93 Drug - Procainamide HCl 39.45 Drug - Promethazine, 50 mg 33.05 Drug - Propranolol HCl 1 mg 11.04 Drug - Revex 100 mcg 60.00 Drug - Rocuronium/Zemuron 119.00 Drug - Sodium Bicarbonate per CC 7.74 Drug - Sublimaze 75.75 Drug - Succinylcholine 20 ml 8.39 Drug - Terbutaline Sulfate 1 mg 26.02 Page 3 of 5 Sd0D-me ,0,dn,.,cesV06Aa bul-, - ice feesm'd.doc Drug - Tetracaine 19.50 Drug - Thiamine 100 mg IV 3.36 Drug - Basopressin 40 units 54.55 Drug - Vecuronium 10 mg 110.00 Drug - Verapamil 2.5 mg 60.00 Drug - Xopenex 1.25 mg 35.50 IV - 5% Dextrose/NS 500 CC 42.00 IV - D5W 1000 CC 47.75 IV - D5W 500 CC 42.00 IV - Normal Saline 1000 CC 47.75 IV - Normal Saline 100 CC 39.60 IV - Normal Saline 250 CC 39.60 IV - Normal Saline 500 CC 41.90 IV - Ringers Lactate 1000 CC 47.75 IV - Blood Draw Procedure 21.00 IV - Collection Tubes 18.75 d. A fee of $40.00 will be charged for each medical records request made by attorneys' offices or other agencies which requires an affidavit. SECTION 2. The City shall charge an Emergency Ambulance Standby fee of $150.00 per hour with a four hour minimum for the use of any City of Denton emergency ambulance for standby at special events such as football games, rodeos, concerts, etc. If any patient is transported, the other fees in the ordinance shall be charged, to the patient, as incurred. SECTION 3. A copy of this schedule of fees and charges shall be maintained on file in the office of the City Secretary. SECTION 4. All ordinances or parts of ordinances in force when the provisions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton, Texas, hereby declares that they would have enacted such remaining portions despite any such invalidity. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. Page 4 of 5 Sd0D,mme ,0,dn,.,cesV06Aa bul-, service feesm'd.doc EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY cc f- BY: Page 5 of 5 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Tax ACM: Jon Fortune SUBJECT Consider approval of tax refunds for the following property taxes: Name Reason year Amount 1. F.JRN Partners Ltd DCAD Supplemental Change 2005 $8,162.45 (value change) 2. Wells Fargo Mcndoza, Oscar Overpayment NM5 $237481 3. 516 N Bell LL(' DCAD Supplemental Changc 2005 $2.626.36 (value cNmgc) 4. Ilunt, William & Linda Duplicate Paymcnnt 2005 $1,652.51 5. First Amcrican/Ciulla, Don Duplicate Paymcnt NM5 $1 A3170 6. Courntiywide Gascornik, Amper Overpayment 2005 $1,455.25 7. 516 N Bell LLC DCAD Supplemental Changc 2005 $1,353.31 (value change) 8. Wells FargoNcal, Phillip & Melissa Duplicate Paymcnt 2005 $1,299.51 9. First Amc&wi Sumsell, .John & Sally Duplicate Payment 2005 $1,216.11 10. Wells Fargo Co«an, Michael Duplicate Payment 2005 $1,012.84 11. Wells Fargo/Sala, Debra Duplicate Payment 2005 $ 961.08 12. Wells Fargo NN'MC Mortgagc Corp Duplicatc Paymcnt 2005 $ 941.67 15. NN"clls Far-o'Joncs, Maw Duplicatc Paymcnt 2005 $ 565.05 14. Wells Fargo Abbott, Mikc Duplicatc Paymcnt 2005 $ 560.05 15. Wells Fargo NN'cstbuw, Sally Duplicate I'aymcrnt 2005 $ 552.50 16. Muirnoiiez, Ad,,tii 'holcsalc Auto Overpayment 2005 $ 849.17 17. Wells Fargo Jessup, Robert Duplicate Paymcnnt 2005 $ 844.71 15. Wells Fargo/Erikson, Lori Duplicatc Paymcnt 2005 $ 516.67 19. First Amcrican'Sawycr, Thomas Duplicatc Paymcnnt 2005 $ 753.02 20. Wells Fargo/Sartin, Ottis Duplicatc Payment 2005 $ 707.56 21. First Amcricarnl Iaskcll, Cyrus Duplicatc Paymcnnt 2005 $ 707.10 22. First Amcrican%Pierce, Brian it Maw Beth Duplicate Paymcnt 2005 $ 699.76 23. Wells Fargohlcin, Pamela Duplicatc Paymcnt 2005 $ 664.11 21 County He Scott, Blake & Susan Duplicatc Paymcnt NM5 $ 571.51 25. First Amcrican/Thomas, Scott Duplicatc Paymcnt 2005 $ 555.93 26. Wells Fargo/Massey, Robert & Louise Duplicate Payment 2005 $ 507.36 BACKGROUND Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $500.00. FISCAL INFORMATION The tax overpayment revenue fund would be reduced by $35,282.98. Respectfully submitted: Diana G. Ortiz Chief Financial Officer 2 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Electric Utility CM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a professional services agreement with R. J. Covington Consulting, LLC for consulting services relating to Task Order No. 06-E providing for Development of Purchased Power Agreement for Nodal Market for Denton Municipal Electric; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0.) BACKGROUND DME uses two sources of energy to serve its customers. The first source is its 21.3% share of the output of the TMPA Gibbons Creek coal fired power plant. Gibbons Creek supplied approximately 57% of DME's total energy needs in FY05. The remainder of DME's energy requirements was supplied through the existing Transition Power Agreement (TPA) with Constellation. The TPA also provides the energy scheduling and settlement functions required by the Electric Reliability Council of Texas (ERCOT). The TPA and the TMPA agreements are the two most critical DME agreements. DME FY05 expenditures under the TPA represented 42% of DME's total FY05 expenditures. The TPA expires in June of 2006. The major changes that will occur in the structure of the electric wholesale market in ERCOT in 2009 make the power purchasing/scheduling/settlement agreement that replaces the TPA even more critical to DME's ability to remain competitive. The new nodal market design that has been adopted by the Public Utility Commission of Texas for ERCOT will create a much more volatile and risky energy market and require sophisticated short-term modeling and hedging activities in order to be successful. Therefore, the process of choosing a vendor to provide those products and services is an extremely important effort. This process, which began in July of 2005 has been very challenging and required a great deal of effort and expertise. Drafting of the Request for Proposal document was complex because of the need address with both the existing and new wholesale market designs. The development of an RFP structured to solicit all possible options available from the wholesale marketplace required multiple drafts and reviews. Because the RFP was so through, DME received responses from almost all of the significant players in the ERCOT wholesale market, some of which were unique in their approach. These unique offers required an extraordinary amount of time and effort to work with those respondents to clarify, model, and evaluate their proposals. Additionally, and most importantly, the development and ultimate approval of the nodal wholesale market design for ERCOT has greatly complicated the negotiation efforts with the selected short-listed responders to the RFP. If implemented on the anticipated schedule, the ERCOT nodal wholesale market design takes effect approximately two and one half years into the proposed term of the agreement being negotiated. The uncertainty associated with the ultimate structure of the nodal market, its impact on supplying wholesale power, and the potential for high risk premiums to cover the unknown impact of potentially high price differentials at various market nodes (or pricing points) has created a situation where both DME and potential suppliers are trying to negotiate terms and conditions to cover future activity in a market that does not exist today and has never existed in ERCOT or any other market in it's current form. This is true both for developing the pricing structure of purchased power and determining roles and responsibilities for the potential supplier and DME regarding acting as DME's scheduling and settlement agent with ERCOT both for DME's load and for Gibbons Creek. This has resulted in working with the selected short listed respondents to develop a completely new contracting structure rather than negotiating traditional terms and conditions. If these negotiation efforts are successful, DME could be in a position to have a power supply with a high degree of cost certainty that will bridge it far enough into the operation of the ERCOT nodal market that negotiation of its next power supply contract will can be done after the market has matured. In order to minimize expenditures, DME maintains a very small administrative staff that manages day-to-day activities and supervises outsourced activities on an as-needed basis. That small staff is augmented with special expertise, through outsourcing, as needed to accomplish specialized tasks. Development and issuance of an RFP for a replacement of the TPA and negotiation of a new agreement is such a specialized task. R. J. Covington Consulting has done the majority of the actual drafting, modeling, and negotiation interface with the respondents under the review and supervision of the Director of Electric Utilities. The $94,400 of funds approved under the initial Task Order 05-C for this work has been exhausted. DME does not have sufficient staff to complete the process without assistance. Task Order 06-E is estimated to provide the funds to complete the negotiation of a new power purchase agreement for DME. OPTIONS 1. Approve Task Order 06-E. 2. Do not approve Task Order 06-E. Accept the risk that the Director of Electric Utilities will not be able to successfully complete both the negotiation of this agreement and manage her other responsibilities. RECOMMENDATION DME recommends approval of Task Order 06-E PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented to the Public Utilities Board at their April 10th regular meeting. The Public Utilities Board recommends approval 6-0. FISCAL INFORMATION Task Order Cost not to exceed $45,000 EXHIBITS 1. Ordinance 2. Task Order 06-E 3. Agreement 4. PUB Minutes Respectfully submitted, Sharon Mays Director of Electric Utilities ORDINANCE NO. 2006- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH R. J. COVINGTON CONSULTING, LLC FOR CONSULTING SERVICES RELATING TO TASK ORDER NO. 06-E PROVIDING FOR DEVELOPMENT OF PURCHASED POWER AGREEMENT FOR NODAL MARKET FOR DENTON MUNICIPAL ELECTRIC; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it in the public interest to continue to engage the firm of R. J. Covington Consulting, LLC of Austin, Texas ("Covington"), to provide further professional consulting services to the City relating to Task Order No. 06-E; which includes, without limitation, services for development of revised contract structure for a future nodal market and to developing contract language to implement developed contract structure for Denton Municipal Electric; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the above-described specialized professional services, and that limited City staff cannot adequately perform the services and tasks with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act," generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and WHEREAS, Covington has represented DME continuously and ably over the last ten (10) years, and has proven to be a valuable, reliable, affordable, and competent professional resource that has expertise in, and is well-acquainted with the electric operations as well as the financial and regulatory framework of Denton Municipal Electric. Covington's operations are located in Austin, Texas. Covington and his staff are particularly familiar with the characteristics, operations, and present rate structure of DME: and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the professional services, as set forth in the Professional Services Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the City Manager is hereby authorized to execute a Professional Services Agreement with R. J. Covington Consulting, LLC of Austin, Texas, for professional consulting services relating to Task Order No. 06-E relating to the City and to Denton Municipal Electric, in an amount not to exceed $45,000; in substantially the form of the Professional 1 Exhibit 1 Services Agreement that is attached hereto and incorporated herewith by reference as Exhibit 4"A." SECTION 2: That the award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of Covington and the ability of Covington to perform the professional services needed by the City for a fair and reasonable price. SECTION 3: That the expenditure of funds as provided in the attached Professional Services Agreement is hereby authorized. SECTION 4: That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: ~l SAOur Documents\Ordinances\06\R J Covington Consulting LLC-DME-Ord Aprv TO 06-E 2006.doc 2 ATTACHMENT PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF DENTON TEXAS AND R. J. COVINGTON CONSULTING, LLC TASK ORDER NO. 06-E DEVELOPMENT OF PURCHASED POWER AGREEMENT FOR NODAL MARKET This Task Order is directed at assisting Denton Municipal Electric ("DME") to work with respondents to DME's previously issued RFP for Purchased Power in developing a Purchased Power Agreement ("PPA") that will afford DME an energy price based on current or future gas prices, at DME's option, and a fixed multiplier which will remain in effect during the anticipated initial implementation of the nodal market design. In addition, R. J. Covington Consulting, LLC ("RJC") will assist DME in working with respondents to developing contract language that will effectively allow the respondent to serve as DME's agent for scheduling both load responsibility and DME's owned generation resource production in a manner that reduces DME's exposure to potential energy price differences between DME's load points in North Texas and the price of energy at DME's generation resource points. Task 1 Development of Revised Contract Structure for Future Nodal Market 1. Conversion of zonal market terms and conditions to accommodate nodal market design requirements per nodal protocols approved by the Texas Public Utility Commission on March 8, 2006. 2. Work with respondents to define rights and responsibilities of each party under nodal market design. 3. Determine cost responsibility of each party for purchase of power, scheduling of DME load, and scheduling of DME owned generation resource projection, and financial settlement with ERCOT under developed structure. 4. Work with respondents to finalize structure of PPA under future nodal market. Task 2 Develop Contract Language to Implement Developed Contract Structure 1. Draft contract language to capture rights and responsibilities of respondent and DME under revised contract structure for future nodal market. 2. Submit contract language to both respondent and DME for review and editing. 3. Work with both parties to finalize contract language. 4. Develop final PPA contract for execution by DME and respondent. I Exhibit 2 Budget The not-to-exceed budget for the above scope of services for both labor and out-of- pocket expenses is $45,000. This amount will not be exceeded without prior written approval of the City of Denton, Texas. This scope of services budget assumes that RJC continues to act as primary contact with respondent and that DME will assist in negotiations if particular issues develop that involve policy issues that require DME attention. RJC will bill this Task Order monthly, with supporting documentation of activities performed. The work performed will be under the supervision of the Director of Electric Utilities, and may be modified at any time upon appropriate notice to RJC. EXECUTED this day of , 2006. AUTHORIZED BY: ACCEPTED BY: CITY OF DENTON, TEXAS R. J. COVINGTON CONSULTING, LLC A Municipal Corporation By: By: ! HOWARD MARTIN BILL S ARNES INTERIM CITY MANAGER ITS VICE PRESIDENT ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: - SAOur Documents\Contracts\06\R J Covington -TO No 06-E RFP -PPA.doc 2 STATE OF TEXAS § COUNTY OF DENTON § PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES PERTAINING TO DENTON MUNICIPAL ELECTRIC THIS ,AGREEMENT is made and entered into on the day of , 2006, by and between the City of Denton, Texas, a Municipal Corporation, with its principal office at 215 East McKinney Street, Denton, Texas 76201 ("CITY"); and R. J. COVINGTON CONSULTING, LLC, a Texas Limited Liability Corporation, with its principal office at 11044 Research Boulevard, Suite A-325, Austin, Texas 78759, hereafter "COVINGTON"; acting herein by and through their duly authorized representatives. WITNESSETH, that in consideration of the covenants, promises and agreements herein contained, the CITY and COVINGTON do hereby AGREE as follows: ARTICLE I EMPLOYMENT OF CONSULTANT The CITY hereby contracts with COVINGTON, as an independent contractor, and COVINGTON hereby agrees to perform the services herein in connection with the Scope of Services as stated in the Articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. ARTICLE 11 SCOPE OF SERVICES A. COVINGTON shall provide to the CITY professional consulting services pertaining to development of a purchased power agreement for nodal market and for development of contract language to implement developed contract structure respecting Denton Municipal Electric ("DME"), and providing analysis thereon. COVINGTON agrees to perform those services and tasks more particularly and specifically described in Task Order No. 06-E attached hereto and incorporated herewith by reference. B. To consult with the City Manager, Assistant City Manager/Utilities, the Director of Electric Utilities, the Utility Attorney, and any other designated administrative personnel regarding any and all aspects of the services to be performed pursuant to this Agreement. ARTICLE III PERIOD OF SERVICE This Agreement shall become effective on the date this Agreement is approved and upon the issuance of a notice to proceed by DME. The termination date of this Agreement shall be upon the earliest to occur of the following events: completion of the work described herein and in the attached Task Order No. 06-E; or upon the depletion and exhaustion of the $45,000 not-to-exceed i Exhibit 3 amount provided for herein; or upon fifteen (15) day's written notice to terminate, issued by the Director of Electric Utilities, DME. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement. COVINGTON shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule established by the CITY, acting through its Director of Electric Utilities. ARTICLE IV COMPENSATION A. COMPENSATION TERMS: "Direct Non-Labor Expense" is defined as that expense for any assignment incurred hereunder by COVINGTON for supplies, long-distance telephone, telecopier, reproduction expense, overnight courier, photocopy expense, transportation, travel, communications, subsistence and lodging away from home and similar incidental~expenses reasonably incurred in connection with that assignment. B. BILLING AND PAYMENT: 1. For and in consideration of the professional services to be performed by COVINGTON herein, the CITY agrees to pay COVINGTON, a total fee, including reimbursement for direct non-labor expense, not to exceed $45,000 for those services described in Task Order No. 06- E. 2. The fee for the services described in this Agreement to be performed by COVINGTON are to be billed the rates as set forth in Exhibit "A" attached hereto and incorporated herewith by reference. Billing shall be reported in minimum one-quarter (1/4) hour increments. 3. Payments to COVINGTON will be made by the CITY on the basis of detailed monthly statements rendered to the CITY through its Director of Electric Utilities. The fee bills as submitted, shall be allowed and approved by the Director of Electric Utilities. However, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. 4. Nothing contained in this Article shall require the CITY to pay for any work which is unsatisfactory as reasonably determined by the City Manager or the Director of Electric Utilities, or which is not submitted in compliance with the terms of this Agreement. The City shall not be required to make any payments to COVINGTON when COVINGTON is in default under this Agreement. 5. It is specifically understood and agreed that COVINGTON shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the CITY for any charge, expense or reimbursement above the maximum not-to- exceed fee as stated, without first having obtained written authorization from the CITY. 2 C. PAYMENT If the CITY fails to make payments due COVINGTON for services and expenses within forty (40) days after receipt of COVINGTON'S undisputed statement thereof, the amounts due COVINGTON will be increased by the rate of one percent (1 per month from the said forty (40th) day, and in addition, COVINGTON may, after giving ten (10) days' written notice to the CITY, suspend services under this Agreement until COVINGTON has been paid in full all amounts due for services, expenses and charges provided. However, nothing herein shall require the CITY to pay the late charge of one percent (I%) set forth herein if the CITY reasonably determines that the work of COVINGTON is unsatisfactory, in accordance with this Article IV, Compensation, and the CITY notifies COVINGTON in writing of any such defect. ARTICLE V OBSERVATION AND REVIEW OF THE WORK COVINGTON will exercise reasonable care and due diligence in discovering and promptly reporting to the CITY any defects or deficiencies in his work or the work of any subconsultants performed hereunder. ARTICLE VI OWNERSHIP OF DOCUMENTS All documents, analyses and other data prepared by COVINGTON under this Agreement ("Work Products") are instruments of service and are and shall remain the property of CITY. COVINGTON shall have the right to make and retain copies and use all Work Products; provided, however, the use shall be limited to the intended use for which the services and Work Products are provided under this Agreement. COVINGTON may use and may copyright certain non-sensitive Work Products as property of COVINGTON; provided that prior written approval is obtained from CITY, whose approval shall not be unreasonably withheld, and providing that copywriting will not restrict CITY'S right to retain or make copies of the Work Products for its information, reference and use on the Project or services under the Agreement. The Work Products shall not be changed or used for purposes other than those set forth in this Agreement without the prior written approval of COVINGTON. If CITY releases the Work Products to a third party without COVINGTON'S prior written consent, or changes or uses the Work Products other than as intended hereunder, CITY does so at its sole risk and discretion and COVINGTON shall not be liable for any claims or damages resulting from or connected with the release or any third party's use of the Work Products. ARTICLE VII INDEPENDENT CONTRACTOR COVINGTON shall provide services to the CITY as an independent contractor, not as an employee of the CITY. COVINGTON shall not have or claim any right arising from employee status. 3 ARTICLE VIII INDEMNITY AGREEMENT COVINGTON shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses and expenses, including but not limited to court costs and reasonable attorney's fees incurred by the CITY, and including without limitation, damages for bodily and personal injury, death and property damage, and damage for professional malpractice resulting from the negligent acts or omissions of COVINGTON or any subconsultants, in performance of this Agreement. COVINGTON'S liability under this Article VIII is expressly limited to the amount of COVINGTON'S insurance coverage as set forth in Article IX. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE IX INSURANCE During the performance of the Services under this Agreement, COVINGTON shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an "A-" or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence, and not less than $100,000 in the aggregate. B. Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident; and with property damage limits of not less than $100,000 for each accident. C. Professional Liability Insurance with policy limits of not less than $1,000,000 annual aggregate. D. COVINGTON shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies to the extent legally possible, and shall contain a provision that such insurance shall not be canceled or modified without thirty (30) days prior written notice to CITY and COVINGTON. In such event, COVINGTON shall, prior to the effective date of the change or cancellation, deliver substitute policies furnishing the same coverage to the CITY. 4 ARTICLE X ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties agree to settle any disputes under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. No arbitration or alternate dispute resolution arising out of or relating to, this Agreement involving one party's disagreement may include the other party to the disagreement without the other's approval. ARTICLE XI LIMITATION OF LIABILITY To the extent permitted by law, the total liability of COVINGTON to CITY for any and all claims arising out of this Agreement, whether caused by negligence, errors, omissions, strict liability, breach of contract or contribution, or indemnity claims based on third-party claims, shall not exceed one million dollars ($1,000,000). ARTICLE XII CONSEQUENTIAL DAMAGES In no event and under no circumstances shall COVINGTON be liable to CITY for any interest, loss of anticipated revenues, earnings, profits, or increased expense of operations, or for any consequential, indirect or special damages. ARTICLE XIII PROFESSIONAL STANDARDS COVINGTON will perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same degree of similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services furnished under this Agreement and all implied warranties are disclaimed. ARTICLE XIV TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by giving thirty (30) days advance written notice of termination to the other party. B. This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be effected unless the other party is given: (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance, and not less than ten (10) business days in which to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C. If this Agreement is terminated prior to completion of the services to be provided hereunder, COVINGTON shall immediately cease all services and shall render a final bill for services to 5 the CITY within thirty (30) days after the date of termination. The CITY shall pay COVINGTON for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination in accordance with Article IV, Compensation. Should the CITY subsequently contract with a new consultant for the continuation of services on the Project, COVINGTON shall cooperate in providing information. COVINGTON shall turn over all documents prepared or furnished by COVINGTON pursuant to this Agreement to the CITY on or before the date of termination, but may maintain copies of such documents for its use. ARTICLE XV RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the CITY shall not constitute nor be deemed a release of the responsibility and liability of COVINGTON, or any subconsultants of COVINGTON, for the accuracy and competency of their designs or other work product. ARTICLE XVI NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail at the address shown below, certified mail, return receipt requested unless otherwise specified herein. Mailed notices shall be sent to the parties at the following addresses: To COVINGTON: To CITY: R.J. Covington Consulting, LLC City of Denton, Texas Attn: Richard J. Covington, President Attn: City Manager 11044 Research Blvd., Suite A-325 215 East McKinney Street Austin, Texas 78759 Denton, Texas 76201 and to City of Denton, Texas Attn: Director of Electric Utilities 901-A Texas Street Denton, Texas 76205 All notices shall be deemed effective upon receipt by the party to whom such notice is given or within three days after the date of mailing. ARTICLE XVII ENTIRE AGREEMENT This Agreement consisting of nine (9) pages, and two (2) additional pages consisting of Task Order No. 06-E, constitutes the complete and final expression of the agreement of the parties and is intended as a complete and exclusive statement of the terms of their agreements and supersedes all 6 prior contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. ARTICLE XVIII SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE XIX COMPLIANCE WITH LAWS COVINGTON shall comply with all federal, state, local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE XX DISCRIMINATION PROHIBITED In performing the services required hereunder, COVINGTON shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XXI PERSONNEL A. COVINGTON represents that he has secured, or will secure at his own expense any additional personnel required to perform all the services required under this Agreement. Such personnel shall be subconsultants of COVINGTON, and shall not be employees or officers of, nor have any contractual relations with the CITY. COVINGTON shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by COVINGTON or under his supervision. All personnel engaged in work shall be qualified and shall be authorized and permitted under state and local laws to perform such services. ARTICLE XXII ASSIGNABILITY COVINGTON shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the CITY. 7 ARTICLE XXIII MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing, duly executed; and, the parties further agree that the provisions of this section will not be waived unless as herein set forth. ARTICLE XXIV MISCELLANEOUS A. COVINGTON agrees that CITY shall, until the expiration of three (3) years after the final payment under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of COVINGTON involving transactions relating to this Agreement. COVINGTON agrees that the CITY shall have access during normal working hours to all necessary COVINGTON facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. The CITY shall give COVINGTON reasonable advance notice of any intended audits. B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be governed by, and construed in accordance with the laws of the State of Texas. C. COVINGTON shall commence, carry on, and complete the work required by this engagement with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the work, COVINGTON shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY. D. The CITY shall assist COVINGTON by placing at COVINGTON's disposal all available information pertinent to the work required by this engagement, including previous reports, any other data relative to the project and arranging for the access to, and make all provisions for COVINGTON to enter in or upon, public and private property as required for COVINGTON to perform services under this Agreement. E. The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed in four (4) original counterparts, by its duly authorized City Manager; and R.J. Covington Consulting, LLC has executed this Agreement by its duly authorized officer on this the day of , 2006. 8 "CITY" CITY OF DENTON, TEXAS A Municipal Corporation By: Howard Martin, Interim City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: "COVINGTON" R. J. COVINGTON CONSULTING, LLC A Texas Limited Liability Corporation By: Bill S arnes, Vice President S:\Our Documents\Contracts\06\RJ Covington Consulting LLC-PSA-Contract Negot-TO 06-E DME.doc 9 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 10, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair convened a Closed Meeting on Monday, April 10, 2006 at 9:00 a.m. in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas to consider the following specific agenda items listed below under the Closed Meeting 9 section of this agenda. 10 11 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek (arrived at 9:04 a.m.), 12 Phil Gallivan and Bob Bland 13 14 Absent: John Baines, excused 15 16 EX OFFICIO MEMBER: 17 Howard Martin, Interim City Manager 18 19 CONSENT AGENDA: 20 21 1) Consider approval of Task Order No. 06-E with R. J. Covington Consulting, LLC, Austin, 22 Texas for continued support in the development, analysis, and negotiation of a new contract 23 for provision of DME's energy requirements (above the energy available from Gibbons 24 Creek) and scheduling and settlement services for all DME energy resources. 25 26 2) Consider recommending approval of the unit prices in Bid #3475 and awarding an agreement 27 for the purchase of distribution gang operated air-break switches from Hughes Supply, 28 Corinth, Texas, in the annual estimated expenditure amount of $46,183. 29 30 Board Member Dick Smith moved to approve Items 1 and 2 with a second from Board 31 Member Bob Bland. The motion was approved by a vote of 6-0. 32 Exhibit 4 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Utilities Administration CM: Howard Martin, 8232 SUBJECT Consider approval an ordinance of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement with Solutient Geosciences, Inc. for performing assessment monitoring and a groundwater monitoring system re-certification of the City of Denton, Texas Municipal Solid Waste Landfill; authorizing the expenditure of funds therefor; providing for retroactive ratification and approval thereof, and providing an effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND The Landfill is required to perform and submit ground water monitoring results of the landfill's twenty monitoring wells and two leachate sumps on a semi-annual basis to the Texas Commission on Environmental Quality (TCEQ). The most recent testing of the landfill's groundwater monitoring wells preliminarily revealed the presence of landfill gas in three of the groundwater wells. Retesting confirmed the presence of the gas, and therefore per TCEQ criteria, additional groundwater monitoring requirements are required. The additional testing required results in the need to increase the groundwater- monitoring budget by approximately $30,000 for fiscal year 2006. Testing results obtained through the remainder of fiscal year 2006 will determine if any increase in groundwater monitoring is needed for fiscal year 2007. Solutient is familiar with Denton's hydrogeological site conditions, and possesses staff capable of monitoring and accurately interpreting Denton's groundwater data. Solid Waste has an existing professional services agreement with Solutient GeoSciences, Inc., in the amount of $41,768. OPTIONS The Public Utilities Board may recommend that Solutient GeoSciences, Inc provide ground water assessment monitoring at the City of Denton Landfill, or they may recommend these services be obtained from another firm. RECOMMENDATION Staff recommends the PUB approve the professional services agreement with Solutient GeoSciences, Inc. to provide hydrogeological consulting and ground water assessment monitoring services at the City's Landfill. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board recommended approval of the annual professional services agreement with Solutient GeoSciences, Inc. at their meeting of October 24, 2005. The City Council approved the annual professional services agreement with Solutient GeoSciences, Inc. at their meeting of November 1, 2005. This item was presented to the Public Utilities Board at their April 10th, regular meeting. The Public Utilities Board recommends approval 6-0. FISCAL INFORMATION Solutient GeoSciences Inc. has proposed to provide the landfill hydrogeological consulting and ground water assessment monitoring services for under $30,000. (28,447.80) Funding will be provided from solid waste budget account number 660300.7839. EXHIBITS 1. Ordinance 2. Agreement 3. PUB Minutes Respectfully submitted: A. Vance Kemler Director of Solid Waste ORDINANCE NO. 2006- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH SOLUTIENT GEOSCIENCES, INC. FOR PERFORMING ASSESSMENT MONITORING AND A GROUNDWATER MONITORING SYSTEM RE- CERTIFICATION OF THE CITY OF DENTON, TEXAS MUNICIPAL SOLID WASTE LANDFILL; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING FOR RETROACTIVE RATIFICATION AND APPROVAL THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems that it is in the public interest to continue to engage Solutient Geosciences, Inc., a Corporation, of Tyler, Texas ("SGI"), to provide professional hydrogeological consulting and analytical services for the City pertaining to the City of Denton Landfill (MSW Permit No. 1590A); the City Council has engaged ETTL for a number of consecutive years to perform these services, and has been satisfied as to the quality and reasonable price of their work; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the above-referenced professional consulting services, and that limited City staff cannot adequately perform the specialized services and tasks with its own personnel; and WHEREAS, it is necessary for the professional services provided by SGI to begin on March 1, 2006, and the timing involved in the contract approval process dictates that this ordinance be ratified and approved effective as of March 1, 2006, which continues the professional services contracted by the City with ETTL for similar services for the City's landfill, without interruption; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act", generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the City Manager is hereby authorized to execute a Professional Services Agreement with Solutient Geosciences, Inc., a Corporation, of Tyler, Texas, in an amount not-to-exceed $28,447.80 for assessment monitoring and groundwater monitoring re-certification and analytical services pertaining to the City of Denton Landfill (MSW Permit No. 1590A); in substantially the form of the Professional Services Agreement attached hereto as Exhibit "A" and incorporated herewith by reference. SECTION 2: That the award of this Agreement by the City is on the basis of the continued demonstrated competence, knowledge, and qualifications of SGI and the I Exhibit 1 continued demonstrated ability of SGI to perform the services needed by the City for a fair and reasonable price. SECTION 3: That the expenditure of funds as provided in the attached Professional Services Agreement is hereby authorized. SECTION 4: That the effective date of the Professional Services Agreement approved hereby, is hereby ratified, confirmed, and made effective as of the I" day of February, 2006. SECTION 5: That otherwise, except as stated in Section 4 hereinabove, this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Id" ~~j By: U SAOur Documents\Ordinances\06\Solutient Geosciences-PSA-Landfill-Monitoring-2006.doc 2 STATE OF TEXAS § COUNTY OF DENTON § PROFESSIONAL SERVICES AGREEMENT FOR ASSESSMENT MONITORING AND RULE CHANGE GROUNDWATER MONITORING SYSTEM RE-CERTIFICATION PERTAINING TO THE CITY OF DENTON LANDFILL THIS AGREEMENT is made, entered into, and effective as of the day of . '2006, by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principal offices at 215 East McKinney Street, Denton, Texas 76201 (hereinafter "OWNER'); and Solutient GeoSciences, Inc., a Corporation, with its corporate office at 3800 Paluxy Drive, Suite 260, Tyler, Texas 75703 (hereinafter "CONSULTANT"); the parties acting herein by and through their respective duly-authorized representatives and officers. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually AGREE as follows: ARTICLE I EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the Articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. The professional services set forth herein are in connection with the following described project (the "Project"): Providing assessment monitoring at the City of Denton Landfill to perform an assessment monitoring event at MW-4U, MW-4L, and MW-10U in March 2006, together with an assessment monitoring event at MW-4U in June 2006. All analytical data will be statistically evaluated and included in a report for submission to the Texas Commission on Environmental Quality. Also, to evaluate the existing system groundwater monitoring system versus the new municipal solid waste rules, and re-certify the system or recommend changes in accordance with new rule requirements. The re-certification will be performed by a Professional Geoscientist, where needed for the Project. ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following Basic Services in a professional manner: A. To perform all those services as are set forth in the CONSULTANT's "Proposal" to the City of Denton, Texas contained in that certain three (3) page letter from Leslie A. Jeske, P.G., Hydrogeologist of the CONSULTANT to David Dugger, Landfill Superintendent of OWNER, dated February 23, 2006, which letter is attached hereto as Exhibit "A" and is Page 1 of 11 Exhibit 2 incorporated herewith by reference. B. If there is any conflict that arises between the terms of this Agreement and the "Probable Cost Estimate" (February 23, 2006), Exhibit "A" attached to this Agreement, then the terms and conditions of Exhibit "A" shall control. ARTICLE III ADDITIONAL SERVICES Any Additional Services to be performed by CONSULTANT, if authorized by OWNER, which are not included as Basic Services in the above-described Scope of Services, set forth in Article II above, shall be later agreed-upon by OWNER and CONSULTANT, who shall determine, in writing, the scope of such Additional Services, the amount of compensation for such additional services, and other essential terms pertaining to the provision of such Additional, Services by CONSULTANT. A partial listing of possible Additional Services and the hourly rates and the amounts therefor, are set forth in the "Probable Cost Estimate" which is attached hereto as Exhibit "B" and is incorporated by reference herewith. ARTICLE IV PERIOD OF SERVICE The parties hereby agree that in any event, this Agreement shall be approved retroactively and effective as of February 1, 2006. Work shall commence upon the issuance of a notice to proceed to CONSULTANT by the OWNER. This Agreement shall remain in force for the period that may reasonably be required for the completion of the Project, including Additional Services, if any, and any required extensions approved by the OWNER, or until September 30, 2006, whichever event shall first occur. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in the performance of this Agreement. CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule(s) reasonably established by the OWNER, acting through its Director of Solid Waste or his designee. ARTICLE V COMPENSATION A. COMPENSATION TERMS: 1. "Direct Non-Labor Expense" is defined as that expense [other than "per diem" expense], based upon actual cost plus fifteen (15%) percent, for any out-of-pocket expense reasonably incurred by the CONSULTANT related to its performance of this Agreement, for long distance telephone charges, telecopy charges, messenger services, printing and reproduction expenses, out-of-pocket expenses for purchased computer time, prudently incurred travel expenses related to the work on the Project, and similar incidental expenses incurred in connection with the Project. Page 2 of 11 B. BILLING AND PAYMENT: For and in consideration of the professional services to be performed by CONSULTANT herein, OWNER agrees to pay CONSULTANT, based upon the satisfactory completion of the Basic Services tasks set forth in the Scope of Services as shown in Article H above; as follows: 1. CONSULTANT shall perform its work on this Project on an hourly fee basis, plus reimbursement for all reasonably incurred out-of-pocket expenses, billed monthly, or for longer periods of time. CONSULTANT shall bill from time sheets, in minimum '/4 hour increments of time, at the rates and subject to the terms set forth in CONSULTANT's "Probable Cost Estimate" which is contained as page 3 to Exhibit "A" heretofore referred to in Article III. OWNER shall pay to CONSULTANT for its professional services performed, and for its out-of pocket expenses incurred in the Project, a total amount not to exceed $28,447.80. 2. Partial payments to the CONSULTANT will be made monthly based on the percent of actual completion of the Basic Services, rendered to and approved by the OWNER through its Director of Solid Waste or his designee. However, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. The OWNER may withhold the final five (5%) percent of the above not-to-exceed amount until satisfactory completion of the Project by CONSULTANT. 3. Nothing contained in this Article shall require the OWNER to pay for any work that is not submitted in compliance with the terms of this Agreement. OWNER shall not be required to make any payments to CONSULTANT at any time when CONSULTANT is in default under this Agreement. 4. It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense or reimbursement above the not-to-exceed amount as stated hereinabove, without first having obtained the prior written authorization of the OWNER. CONSULTANT shall not proceed to perform any services to be later provided for under Article III. "Additional Services" without first obtaining prior written authorization from the OWNER. C. ADDITIONAL SERVICES: For Additional Services authorized in writing by the OWNER in Article III. hereinabove, CONSULTANT shall be paid based on a to-be- agreed-upon Schedule of Charges. Payments for Additional Services shall be due and payable upon submission by the CONSULTANT, and shall be in accordance with Exhibit "A" attached hereto, and Article V.B. hereinabove. Statements for Basic Services and any Additional Services shall be submitted to OWNER no more frequently than once monthly. Page 3 of 11 D. PAYMENT: If the OWNER fails to make payments due the CONSULTANT for services and expenses within thirty (30) days after receipt of the CONSULTANT's undisputed statement thereof, the amounts due the CONSULTANT will be increased by the rate of one percent (1%) per month from and after the said thirtieth (30th) day, and in addition, thereafter, the CONSULTANT may, after giving ten (10) days written notice to the OWNER, suspend services under this Agreement until the CONSULTANT has been paid in full for all amounts then due and owing, and not disputed by OWNER, for services, expenses and charges. Provided, however, nothing herein shall require the OWNER to pay the late charge of one percent (1%) per month as set forth herein, if the OWNER reasonably determines that the CONSULTANT's work is not submitted in accordance with the terms of this Agreement, in accordance with Article V.B. of this Agreement, and OWNER has promptly notified CONSULTANT of that fact in writing. ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the work of CONSULTANT. ARTICLE VII OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the CONSULTANT pursuant to this Agreement are instruments of service and shall become the property of the OWNER upon the termination of this Agreement. The CONSULTANT is entitled to retain copies of all such documents. The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this project and OWNER's use of these documents in other projects shall be at OWNER's sole risk and expense. In the event the OWNER uses the Agreement in another project or for other purposes than specified herein any of the information or materials developed pursuant to this Agreement, CONSULTANT is released from any and all liability relating to their use in that project. ARTICLE VIII INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. CONSULTANT shall not have or claim any right arising from employee status. ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officials, officers, agents, attorneys and employees from and against any and all liability, claims, demands, damages, losses and expenses, including but not limited to court costs and reasonable attorney fees incurred by the OWNER, and including without limitation damages for bodily and Page 4 of 11 personal injury, death, or property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, attorneys and employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE X INSURANCE During the performance of the Services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Board or any successor agency, that has a rating with A. M. Best Rate Carriers of at least an "A-" or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. B. Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 for each person and not less than $1,000,000 for each accident and with property damage limits for not less than $100,000 for each accident. C. Worker's Compensation Insurance in accordance with statutory requirements, and Employer's Liability Insurance with limits of not less than $100,000 for each accident. D. Professional Liability Insurance or appropriate Errors & Omissions Insurance with limits of not less than $1,000,000 annual aggregate. E. CONSULTANT shall furnish insurance certificates or insurance policies at the OWNER'S request to evidence such coverages. The insurance policies shall name the OWNER as an additional insured on all such policies to the extent that is legally possible, and shall contain a provision that such insurance shall not be cancelled or modified without thirty (30) days prior written notice to OWNER and CONSULTANT. In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation of coverage, deliver copies of any such substitute policies, furnishing at least the same policy limits and coverage, to OWNER. ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties will make efforts to settle any disputes arising under this Agreement by Page 5 of 11 submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. However, no arbitration or other form of alternate dispute resolution arising out of, or relating to this Agreement involving one party's disagreement may include the other party to the disagreement without the other's approval. ARTICLE XII TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by providing thirty (30) days advance written notice to the other party. B. This Agreement may alternatively be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be effected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance or other reason(s), and not less than thirty (30) calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C. If the Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services upon receipt of the written notice of termination from OWNER, and shall render a final bill for services to the OWNER within twenty (20) days after the date of termination. The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed, and for reimbursable expenses prior to notice of termination being received by CONSULTANT, in accordance with Article V. of this Agreement. Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information to the OWNER and to the new consultant. If applicable, OWNER shall allow CONSULTANT a reasonable time to transition and to turn over the Project to a new consultant. CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its files. ARTICLE XIII RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval of the work by the OWNER shall not constitute nor be deemed a release of the responsibility and liability of the CONSULTANT, its officers, employees, or agents, for the accuracy and competency of their work performed pursuant to this Agreement; nor shall such approval by the OWNER be deemed as an assumption of such responsibility by the OWNER for any defect in the work prepared by the CONSULTANT, its principals, officers, employees, and agents. Page 6 of 11 ARTICLE XIV NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered to; or telecopied to; or mailed to the respective parties by depositing same in the United States mail at the addresses shown below, postage prepaid, certified mail, return receipt requested, unless otherwise specified herein. To CONSULTANT: To OWNER: Solutient GeoSciences, Inc. City of Denton, Texas Les Jeske, P.G. Michael A. Conduff, City Manager 3800 Paluxy Drive, Suite 260 215 East McKinney Street Tyler, Texas 75703 Denton, Texas 76201 Phone: (903) 581-4340 Fax: (940) 349-8596 And David Dugger, Landfill Superintendent City of Denton, Texas 5166 Foster Road Denton, Texas 76208 All notices under this Agreement shall be effective upon their actual receipt by the party to whom such notice is given, or three (3) days after mailing of the notice, whichever event shall first occur. ARTICLE XV ENTIRE AGREEMENT This Agreement consisting of eleven (11) pages and one (1) Exhibit thereto, said Exhibit consisting of three (3) pages that constitutes the complete and final expression of the Agreement of the parties and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, understandings, and agreements which may have been made in connection with the subject matter of this Agreement. ARTICLE XVI SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement, and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement, to the extent reasonably possible, to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing Page 7 of 11 the original intentions of the parties respecting any such stricken provision. ARTICLE XVH COMPLIANCE WITH LAWS CONSULTANT shall comply with all federal, state, local laws, rules, regulations, and ordinances applicable to the work performed by CONSULTANT hereunder, as they may now read or as they may hereafter be amended. ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XIX PERSONNEL A. CONSULTANT represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, nor have any contractual relations with the OWNER. CONSULTANT shall immediately inform the OWNER in writing of any conflict of interest or potential conflict of interest that CONSULTANT may discover, or which may arise during the term of this Agreement. B. OWNER requires that CONSULTANT carefully safeguard all documents, data, and information provided by OWNER to CONSULTANT incident to this engagement. CONSULTANT recognizes that such documents; data; and information; involve sensitive, competitive issues; in some cases, confidential information; and in some cases proprietary information; and the disclosure of such information by CONSULTANT to any third party, without the express written consent of OWNER, is expressly prohibited by OWNER, and would likely cause economic loss and detriment to OWNER. Any such unauthorized disclosure of information by CONSULTANT shall constitute an act of default respecting this Agreement. CONSULTANT represents to OWNER that it will safeguard OWNER's information and will, upon OWNER'S reasonable request, provide OWNER with CONSULTANT'S policies regarding its procedures for identifying conflicts of interest, and its procedures and safeguards which are in place which would apply to CONSULTANT'S treatment and handling of OWNER'S documents, data, and information during this engagement. C. All services required hereunder will be performed by CONSULTANT or under its direct supervision. All personnel engaged in performing the work provided for in this Agreement, shall be qualified, and shall be authorized and permitted under applicable state and local laws to perform such services. Page 8 of I I ARTICLE XX ASSIGNABILITY The CONSULTANT shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the OWNER. CONSULTANT shall promptly notify OWNER of any change of its name as well as of any material change in its corporate structure, its location, and/or in its operations. ARTICLE XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE =1 MISCELLANEOUS A. CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after the final payment made by OWNER under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of the CONSULTANT involving transactions relating to this Agreement. CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct examinations or audits in compliance with this Article. OWNER shall give CONSULTANT reasonable advance notice of all intended examinations or audits. B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. C. For purposes of this Agreement, the parties agree that Leslie A. Jeske ("Jeske"),. shall serve as the Project Manager for CONSULTANT respecting this engagement. This Agreement has been entered into with the understanding that Jeske shall serve as the CONSULTANT's Project Manager and will be the key person serving the OWNER on this Project. Any proposed changes requested by CONSULTANT, respecting Jeske serving as the Project Manager on the Project, shall be subject to the approval of the OWNER, which approval the OWNER shall not unreasonably withhold. Nothing herein shall limit CONSULTANT from using other qualified and competent members of its firm Page 9 of 11 to perform the other services required herein, under its supervision or control. D. CONSULTANT shall commence, carry on, and complete its work on the Project with all applicable dispatch, and in a sound, economical, efficient manner, and in accordance with the provisions hereof. In accomplishing the Project, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the OWNER. E. The OWNER shall assist and fully cooperate with CONSULTANT by placing at the CONSULTANT's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project and arranging for the access to, and make all provisions for the CONSULTANT to enter in or upon, public and private property as required for the CONSULTANT to perform professional services under this Agreement. OWNER and CONSULTANT agree that CONSULTANT is entitled to rely upon background information furnished to it by OWNER without the need for further inquiry or investigation into such information. F. The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS WHEREOF, the City of Denton, Texas has executed this Agreement in four (4) original counterparts, by and through its duly authorized City Manager; and CONSULTANT has executed this Agreement by and through its duly authorized undersigned officer, on this the day of , 2006, but to be effective as of the I 't day of February, 2006. "OWNER" CITY OF DENTON, TEXAS A Municipal Corporation By: Howard Martin, Interim City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: Page 10 of 11 APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: "CONSULTANT" SOLUTIENT GEOSCIENCES, INC. A Corporation By: Cj Lu' G. 5 PRES IDE7uT ATTEST: By: 1~- Secretary S:\Our Documents\Contracts\06\Solutient Geosciences PSA-Landfill-Assessment Monitoring-SW-2006.doc Page 11 of 11 Solutient GeoSciences, Inc. 3800 Paluxy Drive, Suite 260 Tyler, Texas 75703 (903) 581-4340 (903) 581-4399 fax February 23, 2006 David Dugger Landfill Superintendent City of Denton 5166 Foster Road Denton, Tx. 76208 Re: Exhibit A - Proposal Assessment Monitoring and Rule Change Groundwater Monitoring System Re-Certification City of Denton Landfill (MSW Permit No. 1590A) Denton (Denton County), Texas Dear Mr. Dugger: In accordance with your recent request, Solutient GeoSciences, Inc. ("Solutient") is pleased to submit the following proposal for performing assessment monitoring and a groundwater monitoring system re-certification at the City of Denton ("City") municipal solid waste landfill. Scope of Services As we understand it, the work will consist of performing the following tasks. • Assessment Monitoring - perform an assessment monitoring event at MW-4U, MW-4L, and MW- IOU in March 2006, as well as an assessment monitoring event at MW-4U in June 2006. In addition, all analytical data will be statistically evaluated and included in a report for submission to TCEQ. • Groundwater Monitoring System Re-Certification - evaluate the existing groundwater monitoring system versus the new municipal solid waste rules, and re-certify the system or recommend changes in accordance with new rule requirements. Re-certification will be performed by a Professional Geoscientist. Mr. David Dugger, City of Denton February 23, 2006 Page 2 Cost Estimate Based upon the above scope of services and our understanding ofthe project, we have prepared the attached Probable Cost Estimate which shows the estimated quantities of work and unit fees. It is estimated that the total amount of this proposal should not exceed $ 28, 447.80. You will be notified if unforeseen conditions are encountered or there is a necessity to change the scope of work. Additional work will not be performed without first obtaining your approval of the additional costs. An invoice will be submitted on a monthly basis for the percent of work completed for each task. It will be based upon the actual work performed and the unit prices shown in the attached Probable Cost Estimate. If you have any questions after reviewing this proposal, please do not hesitate to contact me at (903) 581-4340. As always, we look forward to assisting the City with this project. Very truly yours, Solutient GeoSciences, Inc. Leslie A. Jeske, P.G. Hydrogeologist Attach: Probable Cost Estimate PROBABLE COST ESTIMATE February 23,2006 (Exhibit A) Alternate Source Demonstration, Assessment Monitoring, and Rule Change Groundwater Monitoring System Re-Certification City of Denton Landfill - MSW Permit No. 1590A Denton (Denton County), Texas tem uanti Unit Unit Rate Cost Task 1- Groundwater Assessment Monitoring Events (March '06 - MW-4U, MW-4L, & MW-10U, and June 106 - MW-40 Project Man er/H dro eolo ist 14 hour $ 115.00 $ 1610.00 Environmental Technician 30 hour $ 55.00 $ 1,650.00 Subsistence 2 day $ 85.00 $ 170.00 Vehicle 3 day $ 50.00 $ 150.00 Mil eaRe 500 mile $ 0,54 $ 270.00 Turbidity Meter 3 da $ 50.00 $ 150.00 Assessment Constituent Analysis - March '06 Event 3 wells 1 trip and 1 field blank 1 duplicate) 6 each $2,129.80 $ 12 778.80 Assessment Constituent Analysis - March '06 Event 1 additional field blank 1 each $2,129.80 $ 2,129.80 Assessment Constituent Analysis - June'06 Event 1 well 1 trip and 1 field blank i duplicate) 4 each $2,129.80 $ 8,519.20 Subtotal: $ 27 427.80 Task 2 -Rule Chan a Groundwater Monitoring System Re-Ce cadon jq_ roiect Man er/H dro eolo ist 8 hour $ 115.00 $ 920.00 CADD Operator 2 hour $ 50.00 L$2844780] 100.0Subtotal: 1020.0TOTAL Notes: 1. Groundwater samples from MW-4U will be collected in March and June 2006. I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 10, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order on Monday, April 10, 2006, at 9:01 a.m. in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek (arrived at 9:04 a.m.), 11 John Baines, Phil Gallivan and Bob Bland 12 13 Absent: John Baines, excused 14 15 EX OFFICIO MEMBER: 16 Howard Martin, Interim City Manager 17 18 CONSENT AGENDA: 19 The Public Utilities Board has received background information, staff's recommendations, and 20 has had an opportunity to raise questions regarding these items prior to consideration. Detailed 21 information is attached to each Consent Agenda item. 22 23 1) Consider approval of Task Order No. 06-E with R. J. Covington Consulting, LLC, Austin, 24 Texas for continued support in the development, analysis, and negotiation of a new contract 25 for provision of DME's energy requirements (above the energy available from Gibbons 26 Creek) and scheduling and settlement services for all DME energy resources. 27 28 Board Member Dick Smith moved to approve Item 1 with a second from Bob Bland. The 29 motion was approved by a vote of 6-0. 30 31 ITEMS FOR INDIVIDUAL CONSIDERATION: 32 33 4) Consider recommending approval of an amendment to a professional services agreement 34 with Solutient GeoSciences, Inc. (Solutient) to supply the Solid Waste Department with 35 hydrogeological consulting and ground water assessment monitoring services at the City's 36 Landfill in an amount not to exceed $30,000. 37 38 Vance Kemler, Director Solid Waste, reminded the Board that the landfill is required to perform 39 and submit ground water monitoring results of the landfill's twenty monitoring wells and two 40 leachate sumps on a semi-annual basis to the Texas Commission on Environmental Quality 41 (TCEQ). Recent testing revealed the presence of landfill gas in three of the groundwater wells. 42 Retesting confirmed the presence of gas and per TCEQ criteria; additional groundwater 43 monitoring will be required. Testing will be continued through the reminder of fiscal year 2006 44 and will determine if continued increased monitoring will be needed for fiscal year 2007. 45 46 Board Member Bob Bland asked if the funds were coming from reserves. Kemler replied yes. 47 48 Bland moved to approve Item 4 with a second from Board Member George Hopkins. The 49 motion was approved by a vote of 6-0. 50 51 The meeting was adjourned at 10:01 a.m. Exhibit 3 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Sharon Mays 349-8487 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 3498-2006 Electrical Energy Transmission Fees Final Matrix in the total amount of $302,370). The Public Utilities Board recommends approval (7-0). BID INFORMATION There are two purchase orders exceeding $25,000 that reflect the 2006 Net Wholesale Transmission Final Matrix cost of transmission of electrical energy from the generation source to the Denton Municipal Electric Distribution System for January 2006 through June 2006. The purchase orders are for payment of a fee imposed by the Public Utility Commission of Texas (PUCT) for planned transmission services of energy delivered to the City of Denton. The Public Utility Regulatory Act of 1995 (PURA 95) required the development of a new, statewide mechanism for electric transmission service in Texas. PURA 95 also placed municipal utilities under the jurisdiction of PUCT for matters related to transmission. As a result, the Denton Municipal Electric Utility has been ordered by the PUCT to pay various other electric utilities in the State specific amounts. The subject purchase orders provide the City of Denton the authority required by the City Charter to make those payments. These purchase orders will encumber funds estimated as costs for services through June 30, 2006. No funds will actually be spent until invoices are received, reviewed, and approved. RECOMMENDATION We recommend approval as follows: Lower Colorado River Authority $268,840 Texas Municipal Power Agency $33,530 $302,370 Agenda Information Sheet May 2, 2006 Page 2 PRIOR ACTIONNIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its April 24 meeting. PRINCIPAL PLACE OF BUSINESS Texas Municipal Power Agency Lower Colorado River Authority Bryan, TX Austin, TX FISCAL INFORMATION Funds to meet these regulatory fee obligations were budgeted in 2005-2006 budget account 600400.6072. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-File 3498 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE OF FUNDS FOR PAYMENTS BY THE CITY OF DENTON FOR ELECTRICAL ENERGY TRANSMISSION FEES TO THOSE CITIES AND UTILITIES PROVIDING ENERGY TRANSMISSION SERVICES TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE (FILE 3498-2006 ELECTRICAL ENERGY TRANSMISSION FEES FINAL MATRIX IN THE TOTAL AMOUNT OF $302,370). WHEREAS, in order to comply with the legislative requirements contained in the Utility Regulatory Act of 1995, for the payment for energy transmission services fees, the City of Denton is required to pay such fees imposed by the Public Utilities Commission of Texas to ten listed utilities set forth in Exhibit "A"; and WHEREAS, the City Manager has reviewed and recommended that the City Council approve and authorize the payment of such fees; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I . The expenditure of funds in the amount of $302,370 to be paid to the Listed Utilities in the specified amount shown on Exhibit "A", which is attached hereto and made a part of this ordinance for all purposes, is hereby authorized. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: -ORD-FILE 3498 EXHIBIT "A" Lower Colorado River Authority $268,840 Texas Municipal Power Agency $33,530 Total $302,370 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 24, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order at 9:00 a.m. on Monday, April 24, 2006 in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek, Phil Gallivan, John Baines 11 and Phil Gallivan 12 13 Ex Officio Member: 14 Howard Martin, Interim City Manager 15 16 CONSENT AGENDA: 17 The Public Utilities Board has received background information, staff's recommendations, and 18 has had an opportunity to raise questions regarding these items prior to consideration. 19 20 Board Member Phil Gallivan pulled item 2 for individual consideration. 21 22 1) Consider recommending adoption of an Ordinance of the City of Denton, Texas authorizing 23 the expenditure of funds for payments by the City of Denton for electrical energy 24 transmission fees to those cities and utilities providing energy transmission services to the 25 City of Denton; and providing an effective date in the total amount of $302,270. 26 27 3) Consider recommending adoption of an Ordinance authorizing the City Manager to approve 28 an amendment to the Memorandum of Understanding (MOU) between the City of Denton 29 and the University of North Texas dated May 1, 2003 to extend the terms of the MOU for an 30 additional three year term; said MOU providing for collaborative research projects; providing 31 for the expenditure of funds therefore; and declaring an effective date. 32 33 Board Member George Hopkins moved to approved Item 1 and 3 with a second from 34 Gallivan. The motion was approved by a vote of 7-0. 35 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Ross Chadwick 349-8830 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order with the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of two 500 gallon pumper trucks for the City of Denton Fire Department by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3500-Interlocal Agreement for Purchase of Two Fire Trucks with H-GAC awarded to Martin Apparatus, Inc. in the amount of $874,612). FILE INFORMATION This file is for the acquisition of two 500 gallon/2000 gpm pumper fire trucks. Each of these custom pumper units is powered by a 485 hp, diesel, caterpillar engine meeting EPA standards with a five speed Allison automatic transmission, seating for four fire fighters, a 500 gallon polypropylene water tank and a 2000 gallon per minute pump. Both trucks have a two-year full warranty with extended warranties on major components with up to five years of coverage. One truck will be assigned to the new Fire Station 7 now under construction. The second unit is a motor pool replacement for a 1993 model International Pumper purchased in 1994 with Certificates of Obligation and paid out in March 2004. This unit has served as a reserve unit for two years, has in excess of 7600 hours of operation, and will be sold at auction when the new unit arrives. In addition to the purchase of these trucks, equipment purchases in the approximate amount of $250,000 will be presented to Council at a later date. The estimated eight month delivery schedule for the trucks and six to eight weeks for equipment, necessitate the different order dates. The total expenditure for each truck (including equipment) is estimated to be $556,000. RECOMMENDATION Award to Martin Apparatus in the amount of $874,612. PRINCIPAL PLACE OF BUSINESS Martin Apparatus, Inc. Denton, Texas Agenda Information Sheet May 2, 2006 Page 2 ESTIMATED SCHEDULE OF PROJECT The estimated delivery date for the trucks is December 2006. FISCAL INFORMATION The motor pool replacement unit will be funded from Certificates of Obligation approved by Council on December 6, 2005 (Ordinance R-2005-050). The second unit will be funded as part of the Certificates of Obligation and Bonds for Fire Station 7. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: H-GAC Pricing Sheet I-AIS-File 3500 Attachment 1 HGAC PRODUCT PRICING BASED ON CONTRACT FS The following details MUST be provided with an purchase order from an End User to H-GA C End User Agency: Denton Fire Department Date: Aril 10, 2006 Dealer: Martin Apparatus, Inc. Product Description: Pierce Pumper A: Base Price in Bid Number: FS12-05 Suffixes: 0007 $ 201,684.00 B: Published Options: (itemized below, or summarized attached sheets) Published $ 184,424.00 Subtotal Column 1: $ 184,424.00 Subtotal Column 2: $ - Total Published Options added to Base Price (Subtotal of "Col t" & " Col 2") $ $ 184,424.00 C: Subtotal of A + B: $ 386,108.00 D: Unpublished Options: (Itemized below, orsummarized attached sheets) 12% NOTE: Unpublished Options cannot conflict with another contractor's base bid contact Unpublished $ 47,098.00 Subtotal Column 1: $ 47,098.00 Subtotal Column 2: $ - Total Unpublished Options added to Base Price (Subtotal of "Col 1 " & "Col 2") $ $ 47,098.00 E: Contract Price Adjustments and Quantity Discounts: (itany, Explain hens) F: Total of C + D +1- E: (Not including H-GAc Fee) $ 433,206.00 G: Quantity Ordered: (Units: 2.00 x F) $ 866,412.00 H: HGAC.Administrative Fee: (From Fee Schedules, Tables) $ 2,000.00 I: Non-Equipment Charges & Credits: (ie, Ext. Warranty, Trade in, factory trips, etc) 212 factory trips 6200.00 Each Qty Total Subtotal of Non-Equipment Charges $ 8,200.00 J: TOTAL PURCHASE PRICE INCLUDING (G + H + 1) $ 874,692.00 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A PURCHASE ORDER WITH THE HOUSTON- GALVESTON AREA COUNCIL OF GOVERNMENTS (H-GAC) FOR THE ACQUISITION OF TWO 500 GALLON PUMPER TRUCKS FOR THE CITY OF DENTON FIRE DEPARTMENT BY WAY OF AN INTERLOCAL AGREEMENT WITH THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE (FILE 3500-INTERLOCAL AGREEMENT FOR PURCHASE OF TWO FIRE TRUCKS WITH H-GAC AWARDED TO MARTIN APPARATUS, INC. IN THE AMOUNT OF $874,612). WHEREAS, pursuant to Ordinance 95-107, the Houston-Galveston Area Council of Government (H-GAC) has solicited, received, and tabulated competitive bids for the purchase of necessary materials, equipment, supplies, or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies, or services can be purchased by the City through the Houston-Galveston Area Council of Government (H-GAC) programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, 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 file for materials, equipment, supplies, or services, are hereby approved. FILE NUMBER VENDOR AMOUNT 3500 Martin Apparatus, Inc. $874,612 SECTION 2. By the acceptance and approval of the above numbered items set forth in the referenced file, the City accepts the offer of the persons submitting the bids to the H-GAC for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the H-GAC, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by H-GAC, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to H-GAC, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated items, 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 , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 3-ORD-File 3500 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Jim Coulter 349-7194 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of the Parvin 15/21" Sanitary Sewer Line Project for the City of Denton Water/Wastewater Utilities Division; providing for the expenditure of funds therefore; and providing an effective date (Bid 3480-Parvin Sanitary Sewer Line awarded to Wilson Contractor Services, L.L.C. in an amount not to exceed $238,479.60). The Public Utilities Board recommends approval (7-0). BID INFORMATION The Parvin 15"/21" Sanitary Sewer Line project consists mainly of the construction of a replacement sanitary sewer line for the existing sanitary sewer line that runs from Parvin Street to Roselawn Avenue. The existing sanitary sewer line is over 40 years old and is exposed at several points by the meandering of the adjacent creek. Future growth projections indicate the loading on the line will increase, requiring the size of the line to be increased to the 15" and 21" sizes designated in the project plans. The new sewer line alignment will position the sewer far enough from the streambed so as to make future exposure by meandering of the creek very unlikely. Bids for the construction phase of this project were received on April 6, 2006. There were eight bidders, with bids ranging from a low base bid of $238,479.60 to a high base bid of $558,253.20. The low bidder for this project, Wilson Contractor Services, L.L.C., appears to meet all the requirements for the qualified low bidder for this project. There are no alternate bid items associated with this project. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its April 24 meeting. RECOMMENDATION Award to Wilson Contractor Services, L.L.C. in an amount not to exceed $238,479.60. Agenda Information Sheet May 2, 2006 Page 2 PRINCIPAL PLACE OF BUSINESS Wilson Contractor Services, L.L.C. Denton, TX STAFF COST ESTIMATE The engineer's estimate for the project was $492,000.00 ESTIMATED SCHEDULE OF PROJECT Construction is scheduled to begin June 2006 with an estimated completion date of September 2006. FISCAL INFORMATION This project will be funded from account 640019537. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment l: Tabulation Sheet 1-AIS-Bid 3480 O L Q) X O ~ ~ ri LO V) V) V) V) N > Cl) O n +--I (A (A (A (A ~ N o ~ O ~ X O L c n ~ N = f6 o u ° 00 a) Q) ru > N N o ~ O L ~ O N M 'p C io Lll LA LA LA LA U Q Lr) N C N Ln C > C Lll U Y Ll) O L. X J O C O J 'p O L Q) c n LA LA LA LA U L C 00 > u ) M V7 N o Q~ u x L U ,a _c C rl LA LA LA LA a O v GJ Q) Ln IC > o Q n o) Q -ull O O L O O O O O _ L M N N N N N U Lr } } } } > o to u N Ln ~ O O u n Lr N v ° O > U 00 J J L ~ N M C Q) U-) O c [p _0 # # # i a co Ln o Z) Z) Z) 4j v o fu m m C C C L, U m a a a m 0 _0 _0 _0 (n Q) N Q Q Q n Lr) \ tG \ a` # Qj 'Q a •m O m a a z ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE PARVIN 15/21" SANITARY SEWER LINE PROJECT FOR THE CITY OF DENTON WATER/WASTEWATER UTILITIES DIVISION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3480-PARVIN SANITARY SEWER LINE AWARDED TO WILSON CONTRACTOR SERVICES, L.L.C. IN AN AMOUNT NOT TO EXCEED $238,479.60). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager, or a designated employee, has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3480 Wilson Contractor Services, L.L.C. $238,479.60 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 3-ORD-Bid 3480 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 24, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order at 9:00 a.m. on Monday, April 24, 2006 in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek, Phil Gallivan, John Baines 11 and Phil Gallivan 12 13 Ex Officio Member: 14 Howard Martin, Interim City Manager 15 16 ITEMS FOR INDIVIDUAL CONSIDERATION: 17 18 2) Consider recommending approval of Bid No. 3480 to Wilson Contractor Services, Inc. for 19 the construction of the Parvin 15"/21" Sanitary Sewer Line project, in an amount not to 20 exceed $238,479.60. 21 22 Gallivan expressed concern over the wide variation of the bids in terms of dollars and wondered 23 if Wilson Contractor Services, Inc., would complete the project based on its bid amount. 24 25 Frank Payne, City Engineer, stated that staff had talked with Wilson Contracting Company and it 26 is standing by its bid and has submitted a letter to that effect. 27 28 Board Member John Baines asked for an update at the completion of the project. 29 Board Member Bill Cheek moved to approve with a second from Board Member Bob 30 Bland. The motion was approved by a vote of 7-0. AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Transportation Operations CM: Howard Martin, 349-8232 SUBJECT Consider the adoption of an ordinance approving and authorizing the Mayor to execute a First Amendment to the Asset Purchase Agreement transferring all buses, equipment, and other related assets from the City Passenger Motor Carrier Transit System known as LINK to the Denton County Transportation Authority; authorizing an extension of the time for Federal Transit Administration approval to March 30, 2007; authorizing the City Manager to take necessary actions to complete the transfer; and providing an effective date. The Mobility Committee recommends approval (4-0). BACKGROUND On September 20, 2005 Council approved Ordinance No. 2005-299, providing for the transfer of all assets owned by the City of Denton LINK System to the Denton County Transportation Authority (DCTA) for the provision of public transportation services in the City of Denton. Part of the approval process required that the Federal Transit Administration (FTA) review and approve the proposed transfer of the LINK assets. FTA approval is necessary since the capital assets; vehicles, computers and other related equipment were purchased with FTA grants. The original Asset Purchase Agreement entered into by the DCTA and the City of Denton contemplated FTA approval would require 60 to 90 days based on conversations that DCTA staff had with FTA officials. With this understanding, DCTA and the City of Denton agreed to an escrow agreement, placing the vehicle titles in escrow for 180 days to allow for FTA approval of the proposed transfer. On February 22, 2006 the FTA provided preliminary approval of the proposed transfer of grant- funded assets as outlined in the original transfer agreement. The FTA conditioned the approval of the proposed asset transfer on the US Department of Labor (DOL) providing formal approval of the proposed transfer. The FTA further conditioned the approval on the DOL until a formal grant effecting the transfer is executed by and between FTA and DCTA. This unanticipated review and approval process through the DOL has resulted in the need to amend the current Asset Purchase Agreement to allow additional time for the FTA to provide final, legally binding, approval of the Asset Purchase Agreement. The original agreement provided for 180 days to receive FTA approval of the transfer and should FTA approval not be received within the stated time frame, the escrowed titles were to be returned to the City of Denton. To ensure DCTA would have equipment to continue providing service should the FTA deny the transfer, the agreement stated that the DCTA and the City of Denton would negotiate a long-term lease agreement for the use of the equipment through the term of all FTA grant compliances associated with the assets. Both parties desire to amend the escrow agreement by extending the time for FTA approval to March 30, 2007. The proposed amendment would terminate the current escrow agreement with the third parry and allow the City to hold the vehicle titles and other transfer documents until final FTA approval. It is anticipated this process will remove the potential of another lengthy review process by the FTA as it relates to a long-term asset lease agreement between the City of Denton and DCTA. DCTA is seeking similar terms to their Asset Purchase Agreement with the City of Lewisville. PRIOR ACTION/REVIEW The Mobility Committee reviewed the proposed amendment at the April 21, 2006 Mobility Committee Meeting and recommends approval 4-0. The Denton County Transportation Authority will consider the amendment at their April 27, 2006 Executive Board Meeting. ESTIMATED SCHEDULE OF PROJECT May 2, 2006 through March 30, 2007 or until final approval by FTA. FISCAL INFORMATION DCTA provided the City of Denton $233,000 on September 30, 2005 as payment for the local share for the LINK vehicles and equipment. EXHIBITS 1. Ordinance 2. First Amendment 3. Mobility Committee Meeting Minutes Respectfully submitted: Mark Nelson Chief Transportation Officer S:IOur Documentsl0rdinances\WDCTA First Amendment Ordinance.doc ORDINANCE NO. AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO THE ASSET PURCHASE AGREEMENT TRANSFERRING ALL BUSES, EQUIPMENT, AND OTHER RELATED ASSETS FROM THE CITY PASSENGER MOTOR CARRIER TRANSIT SYSTEM KNOWN AS LINK TO THE DENTON COUNTY TRANSPORTATION AUTHORITY; AUTHORIZING AN EXTENSION OF THE TIME FOR FEDERAL TRANSIT ADMINISTRATION APPROVAL TO MARCH 30, 2007; AUTHORIZING THE CITY MANAGER TO TAKE NECESSARY ACTIONS TO COMPLETE THE TRANSFER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on September 20, 2005 the City Council passed Ordinance No. 2005-299 authorizing the Mayor to execute an Asset Purchase Agreement of the same date along with other documents, transferring all LINK public transportation service assets to the Denton County Transportation Authority ("DCTA"); and WHEREAS, as a part of that Agreement the parties agreed that the Asset Purchase Agreement and all other asset transfer documents would be held in escrow by a third party escrow agent until approval of the transfer by the Federal Transit Administration of the United States Department of Transportation ("FTA") and if FTA approval was not obtained by the close of business on March 31, 2006 the parties would enter into a lease of all the vehicles by the City as Seller to the DCTA as Buyer; and WHEREAS, the FTA has approved the transfer of title of the vehicles and other assets subject to certain other approvals which have not yet been finalized; and WHEREAS, the FTA final approval has taken longer than anticipated and the parties desire to amend certain terms and conditions of the Asset Purchase Agreement dated September 20, 2005 ("Original Agreement") to extend the time for FTA approval to March 30, 2007, to terminate the escrow agreement and to allow the City to hold the transfer documents in escrow until final FTA approval with the third party escrow agent; and WHEREAS, City Council determines that the First Amendment will fi -ther the objectives of the Asset Purchase Agreement and is in the best interest of the parties. 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. City Council hereby approves and authorizes the Mayor, or in her absence, the Mayor Pro-Tem, to execute the First Amendment to the Asset Purchase Agreement substantially in the form of the attached First Amendment. Exhibit 1 SECTION 3. The City Manager, or his designee, is authorized to expend the funds as authorized in the agreement and to exercise all rights and duties of the City of Denton under the First Amendment to Asset Purchase Agreement. SECTION 4. A true and correct executed copy of this Ordinance will be transmitted to the appropriate officials of the DCTA and FTA by the City Manager or his designee, immediately upon its passage and approval. SECTION 5. This Ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN SNYDER, CITY ATTORNEY BY: STATE OF TEXAS § § First Amendment to Asset Purchase Agreement COUNTY OF DENTON § This First Amendment to Asset Purchase Agreement ("Agreement") is made by and between the Denton County Transportation Authority (`Buyer") and City of Denton, Texas, ("Seller"), acting by and through their respective authorized officers. WITNESSETH: WHEREAS, the parties previously entered into that certain Asset Purchase Agreement dated September 30, 2005 for the purchase and sale of certain assets (the "Original Agreement"); and WHEREAS, the parties desire to amend certain terms and conditions of the Original Agreement as set forth herein in connection with the Federal Transit Administration of the United States Department of Transportation ("FTA") approval of the transfer of title of certain vehicles as contemplated by the Original Agreement; and WHEREAS, the FTA has approved the transfer of title of the Vehicles and other assets which are identified in the Original Agreement subject to certain other approvals which have not yet been finalized; and WHEREAS, the Seller and Buyer have determined that this Agreement will further the objectives of the Original Agreement and is in the best interests of the parties; NOW, THEREFORE, in consideration of the foregoing, and on the terms and conditions hereinafter set forth, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The Parties agree that Section 7.5 of the Original Agreement is hereby amended to read as follows: "7.5 FTA Approval. As in accordance with Section 3.2(d) above, at Closing the Titles were deposited with the Escrow Agent to be held by and then released by the Escrow Agent to the Buyer in accordance with the terms and conditions of the Escrow Agreement upon Seller receiving FTA approval to transfer the Vehicles to the Buyer and promptly executing and delivering to the Escrow Agent the Statement of FTA Approval By the City of Denton, Texas (Exhibit B to the Escrow Agreement) and upon Buyer receiving FTA approval to receive the Vehicles from the Seller and promptly executing and delivering to the Escrow Agent the Statement of FTA Approval By Denton County Transportation Authority (Exhibit C to the Escrow Agreement), as contemplated herein. However, the FTA has approved the transfer and receipt of the Titles subject to other approvals that have not yet been finalized. Accordingly, the Buyer and Seller further agree that since the FTA has tentatively approved, but is not expected to finalize and compete its approval of the sale of the Assets by the Seller to the Buyer and the conveyance and transfer of the Other Buses by the Seller to the Buyer as originally contemplated First Amendment to Asset Purchase Agreement - 1 65105 Exhibit 2 in this Agreement by the close of business on March 31, 2006, that if the FTA has not finally approved the sale of the Assets by the Seller to the Buyer and the conveyance and transfer of the Other Buses by the Seller to the Buyer as contemplated in this Agreement by the close of business on March 30, 2007, the Seller and Buyer shall immediately commence the good faith negotiation of the terms and conditions of an appropriate lease for all of the Vehicles by the Seller to the Buyer for the purpose of the Buyer's unlimited use of the Vehicles in the establishment, operation and maintenance of an intra-city bus line in the City of Denton and such terms and conditions (among others) of such lease shall include, without limitation, each of the following: (a) the Purchase Price shall be deemed by Seller and Buyer to be the full and complete rental to be paid by Buyer and Seller under such lease and therefore Buyer shall not have any other or additional rental obligation under the lease beyond the Purchase Price as paid at Closing; and (b) the term of the lease shall have a schedule date of April 30, 2010. Further, seller and Buyer agree that such lease shall be executed by the Seller and Buyer by no later than the close of business on May 31, 2007 unless such date be extended in writing by Seller and Buyer that shall provide for interim operation by the Buyer." 2. The Parties agree that the Original Agreement is hereby amended to add the following new section to read as follows: "7.6 Delivery of Titles by Escrow e (a) The Seller and Buyer agree to cause the termination of the Escrow Agreement unless the Escrow Agreement has already terminated by its own terms and the Escrow Agent has delivered the Titles to the Seller in accordance with the Escrow Agreement. In the event the Escrow Agent has not already delivered the Titles to the Seller, the Seller and Buyer shall direct the Escrow Agent to deliver the Titles to the Seller which shall hold the Titles until such time as the Seller receives final written FTA approval to transfer the Vehicles to the Buyer and the Buyer receives final written FTA approval to receive the Vehicles from the Seller, at which time the Seller shall deliver the Titles to Buyer. (b) In the event the Escrow Agent has already delivered the Titles to Seller in accordance with the Escrow Agreement, the Seller agrees to hold the Titles until such time as the Seller receives final written FTA approval to transfer the Vehicles to the Buyer and the Buyer receives final written FTA approval to receive the Vehicles from the Seller, at which time the Seller shall deliver the Titles to Buyer." 3. This Amendment to the Original Agreement shall take effect on the last date of execution hereof. 4. Except as amended herein the Original Agreement shall continue in full force and effect. First Amendment to Asset Purchase A event - 2 65105 EXECUTED on this day of , 2006. DENTON COUNTY TRANSPORTATION AUTHORITY By: Charles Emery, President Approved as to Legal Form Peter G. Smith, General Counsel EXECUTED on this day of , 2006. CITY OF DENTON, TEXAS By: Euline Brock, Mayor Approved as to Legal Form Attest: Edwin M. Snyder By: A.4 41, , t'l By: Jennifer Walters, City Secretary First Amendment to Asset Purchase A eement - 3 65105 1 DRAFT MINUTES 2 City Council Mobility Committee 3 Friday, April 21, 2006 4 5 After determining that a quorum of the Mobility Committee of the Denton City Council was 6 present, the Chair convened into an Open Meeting on Friday, April 21, 2006 at 12:36 p.m. in the 7 Civic Center Community Conference Room, 321 E. McKinney Street, Denton, Texas. 8 9 Present: Mayor Euline Brock, Mayor Pro-Tem Perry McNeill, Chair and Council 10 Member Pete Kamp and Council Member Bob Montgomery. 11 12 Ex Officio Members: 13 Howard Martin, Interim City Manager 14 Jim Coulter, Director of Water/Wastewater Utilities 15 Mark Nelson, Chief Transportation Officer 16 17 Also Present: Frank Payne, City Engineer; Ed Witowski, Senior Engineer; Paul Williamson, 18 Right-of-Way; Brian Lockley, Planner IV, Bud Vokoun, Traffic Engineer, John 19 Polster, ITS; and Ann Forsythe, Secretary 20 21 4) Receive a report, hold a discussion and provide staff direction regarding amendments to the 22 Interlocal Agreement between the City of Denton and Denton County Transportation 23 Authority regarding capital asset transfer. 24 25 Mark Nelson, Chief Transportation Officer, reviewed the purchase of the LINK System by the 26 Denton County Transportation Authority (DCTA). Nelson stated that the Federal Transportation 27 Administration (FTA) has provided a conditional approval of the proposed asset transfer. The 28 approval was conditional on an unanticipated review and approval by the Department of Labor. 29 Nelson reported that the processes to amend the agreement between DCTA and the City of 30 Denton and extend the amount of time for FTA's final approval of the Asset Transfer Agreement 31 would be more expeditious than to negotiate a long-term lease with DCTA for the capital assets 32 as contemplated in the original agreement. 33 34 Committee Member Perry McNeill made a motion to approve with a second from 35 Committee Member Bob Montgomery. The motion was approved by a vote of 4-0. 36 37 The meeting adjourned by a consensus at 2:45 p.m. Exhibit 3 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Transportation Operations CM: Howard Martin, 349-8230 SUBJECT Consider an ordinance of the City of Denton, Texas, approving and authorizing the Denton Air Fair Committee and the Association of Competition Air Show Pilots, an Alabama L.L.C. ("ACAP") to hold an Air Fair at the Denton Municipal Airport on May 20 and 21, 2006; authorizing the concession to ACAP and the Denton Air Fair Committee to sell alcoholic beverages at places and locations during the 2006 Air Fair event; amending Chapter 3 "Airports" of the City Code to allow waiver of or substitution of insurance requirements; and providing an effective date. The Airport Advisory Board recommends approval 5-0. BACKGROUND The Denton Air Fair Committee has changed the format of organizing and promoting the 2006 Denton Air Fair. The Denton Air Fair Committee has entered into an agreement with a third party event coordinator, ACAP, also referred to as Extreme Vision Quest (EVQ) to provide a turnkey event. EVQ will provide event planning, acrobatic acts, static displays, ticket sales, concession sales, merchandise sales, ground control services, aerial coordination services (Air Boss), event management and event promotions. EVQ will also assist with the clean up trash, removal of temporary structures at the site and shall comply with all local, state, and federal rules, regulations and guidelines. The Air Fair Committee will be responsible for providing event volunteers, provision of ground vehicle parking services, security and will coordinate and plan logistics through the City of Denton. EVQ has represented to the Air Fair Committee that a national beer distributor is willing to provide a substantial donation for the opportunity to sponsor the event and sell their product. The Denton Air Fair Committee has contacted airport management, the City of Denton Risk Manager, the Police Department and the Parks Department to identify what steps and/or actions may be necessary to facilitate this activity on Airport/City property. Risk Management advised the Air Fair Committee that the insurance policy must include a liquor liability clause to address the sale of alcohol and indemnify the City of Denton. Risk Management further stated that each server would be required to receive training for serving alcoholic beverages through the Texas Alcoholic and Beverage Commission (TABC). The Denton Police Department indicated the event would need to have one additional officer to provide security for each point of sale. The TABC also stated that a three-day permit must be facilitated through the Denton Police Department. Representatives from the Air Fair Committee presented a plan at the April 12, 2006 Airport Advisory Board Meeting that addressed these issues and outlined actions that will be taken by the Air Fair Committee to comply with the requirements as identified. 1 The plan, as presented by the Air Fair Committee, will limit the sale of alcoholic beverages from 12:00 p.m. to 4:00 p.m. each day of the event and shall be restricted to a specific location identified for open containers. The plan identified a limited access chalet area where security personnel and event staff will monitor alcohol sales and prevent alcoholic beverages from being introduced to other locations on the airfield. The Air Fair Committee will also hire additional event security personnel and the Air Fair Committee has agreed to secure all required licenses and permits. It is proposed that the sale of alcoholic beverages will be done on a trial basis and will be evaluated as part of the event debrief. Financial terms and sponsoring information is not available at this time as EVQ and the Denton Air Fair Committee are currently negotiating terms of the proposed agreement with the distributor(s). Air Fair representatives do not anticipate the final terms to be completed until 14 days prior to the event. For the past two years, the Air Fair has provided $5,000,000 in liability coverage for the event. Further review of City Code, as it relates to the sale of alcohol on city property, revealed that liability insurance in the amount of $10,000,000 is required for all air shows. Denton Air Fair Committee represents that the $10,000,000 Liability Insurance requirement would put an undue hardship on the Air Fair Committee and the event coordinator. Airport management conducted an informal survey of several airports that host air show events. The results of this survey have been attached for your review as Exhibit 2. The survey demonstrates that the majority of airports require event coordinators to provide proof of liability insurance between $2,000,000 and $5,000,000. Airport management also received information from Ms. Susan Amey of Insurance Technologies and Programs, Inc. (ITP) which provides insurance coverage for more than 200 air show events across North America each year and has provided the coverage for the Denton Air Fair for the six of the past seven years. Ms. Amey indicates that 60% of the air shows covered by ITP carry limits between $1,000,000 and $2,000,000, 36% of the events carry $5,000,000, and just 4% of the events carry liability insurance in excess of $5,000,000. A letter outlining this information from Ms. Amey has been attached for your review as Exhibit 3. Information gathered by Air Fair Committee Members indicates the only events holding $10,000,000 policies are those events such as the Reno Air Races and the Oshkosh (Wisconsin) Experimental Aircraft Association Fly-in. These events experience a significant number of fly-in participants and host several thousand spectators per day over a five to six day period. The proposed ordinance will grant permission to the Denton Air Fair Committee and EVQ to utilize the Denton Municipal Airport on May 20 and 21, 2006 for the purpose of hosting an air show event, provide the Denton Air Fair with a concession to sell alcohol during the two-day event and provide for an amendment to the City Code Chapter 3, "Airports" as it relates to air meet insurance requirements. More specifically, it provides the City Manager with discretion to adjust the requirements of air show/air meet liability insurance based on consultation with legal staff and risk management provided that the minimum combined single limit is never less than $2,000,000 per occurrence. PRIOR ACTION/REVIEW The Airport Advisory Board recommends approval 5-0 to grant permission to the Air Fair Committee to utilize the Airport for the May 20 and 21, 2006 Air Fair, allow the sale of alcohol 2 provided all requirements are met and to amend the City Code, as necessary, to authorize event liability insurance in the amount of five million dollars. FISCAL INFORMATION Due to the change in format of the event this year, Airport Management has agreed that revenue sharing with the Airport will not be considered for either the event or the sale of alcohol. However in-kind services in the form of marketing exposure and community relations will be anticipated. Revenue sharing opportunities will be negotiated for future events. ESTIMATED SCHEDULE OF PROJECT The Air Fair is a two-day event scheduled for May 20 and 21, 2006. EXHIBITS 1. Ordinance 2. Air Show Event Survey 3. Insurance Technologies and Programs, Inc. Letter 4. Draft Minutes Airport Advisory Board Respectfully submitted: Mark Nelson Chief Transportation Officer 3 S AOur Documents%0rdinances106\Master Venue Agr-Denton Air Fair.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND AUTHORIZING THE DENTON AIR FAIR COMMITTEE AND THE ASSOCIATION OF COMPETITION AIRSHOW PILOTS, AN ALABAMA L.L.C. ("ACAP") TO HOLD AN AIR FAIR AT THE DENTON MUNICIPAL AIRPORT ON MAY 20 AND 21, 2006; AUTHORIZING THE CONCESSION TO ACAP AND THE DENTON AIR FAIR COMMITTEE TO SELL ALCOHOLIC BEVERAGES AT PLACES AND LOCATIONS DURING THE 2006 AIR FAIR EVENT; AMENDING CHAPTER 3 "AIRPORTS" OF THE CITY CODE TO ALLOW WAIVER OF OR SUBSTITUTION OF INSURANCE REQUIREMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton Air Fair Committee as a cosponsor with the Association of Competition Airshow Pilots, an Alabama L.L.C. ("ACAP") desires to hold an Air Fair event at the Denton Municipal Airport ("Airport") on May 20 and 21, 2006; and WHEREAS, the Denton Air Fair and/or ACAP agree to fully comply with the requirements for holding airshows consistent with Chapter 3 "Airports" of the Denton City Code as amended hereby; and WHEREAS, ACAP has requested and the Airport Advisory Board has recommended that ACAP be granted the concession to sell alcoholic beverages at the Airport on the days and times indicated herein and approved by the City Manager; and WHEREAS, the City Manager recommends that Chapter 3 of the City Code be amended to allow the lowering of and the substitution of insurance requirements for airshows based on a recent survey of minimum requirements for airshow events to allow more flexibility in contracting with air fair sponsors and event coordinators; and WHEREAS, the City Council deems it in the public interest to approve the Denton Air Fair Committee and ACAP to hold an airshow at the Denton Municipal Airport on May 20 and 21, 2006, to allow the sale of alcoholic beverages for the 2006 Denton Air Fair event and to change the minimum insurance requirements for airshow events and allow the City Manager to waive or substitute insurance requirements; 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 ACAP and the Denton Air Fair Committee are hereby authorized to hold an airshow at the Denton Municipal Airport and to have a concession to sell alcohol at the Denton Airport for the 2006 Denton Air Fair on May 20 and 21, 2006 during these days and at the times and under the conditions approved by the City Manager or his designee thereto subject to the ACAP's and the Denton Air Fair Committee's compliance with all applicable local, state and federal laws, including without limitation, the Texas Alcoholic Beverages Code and upon the following additional conditions: SA0ur Documentsl0rdinances106Waster Venue Agr-Denton Air Fair.doc 1. They shall provide security necessary for the sale of alcoholic beverages. 2. They shall provide general comprehensive liability insurance in the amount of $5,000,000 and additional insurance as required and approved by the City Manager or his designee and in compliance with applicable provisions of the City Code and all other applicable laws including the Texas Alcoholic Beverage Code and Chapter 3 of the City Code as hereby amended. 3. They shall obtain and pay for all licenses and permits required to conduct the 2006 Denton Air Fair and to sell alcoholic beverages at this event including those required by the Texas Alcoholic Beverage Commission and the City. 4. They shall agree to indemnify the City against any liability relating to the 2006 Denton Air Fair and the sale of alcoholic beverages at the event and name the City as an additional insured on all insurance policies. SECTION 3. Section 3-21 "Minimum insurance for airshow" of Chapter 3 "Airports" is hereby amended to read as follows: i Sec. 3-21. Minimum insurance for airshow. It shall be unlawful for any airshow to be conducted at the Denton Municipal Airport unless insurance coverage is maintained by the sponsor (co-sponsors) or promoter in the following minimum amounts: Airshow I airmeet liability. Combined single limit bodily injury and property damage liability, $5,000,000.00 each occurrence. Different requirements for Airshow/airmeet liability insurance can be substituted if the City Manager, on the recommendation of the Risk Manager taking into consideration the scope of the airshow event, availability of insurance and other related factors, approves Airshow/airmeet liability insurance in different amounts and coverages. Provided, however, the minimum Airshow/airmeet liability insurance combined single limit bodily injury and property damage liability coverage shall never be less than $2,000,000 per each occurrence. The policies of insurance covering the sponsor/promoter as required in this section shall name as additional insureds the City, its officers, agents, employees, city council, commissions, boards and committees. In addition, such policy or policies of insurance shall be endorsed to provide that no material changes in coverage, including, but not limited to, cancellation, termination, nonrenewal or amendment, shall be made without thirty (30) days prior written notice to the City Manager or Airport Manager of the City. Sponsor/promoter shall maintain the required insurance with insurance companies authorized to do business in the State of Texas with an A.M. Best rating acceptable to the City Manager on recommendation of the Risk Manager. SECTION 5. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of Section 3 "Airports" of the Code of Ordinances shall remain in full force and effect. Page 2 of 3 SAOur DocumentAOrdinances\061Master Venue Agr-Denton Air Fair.doc i SECTION 6. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCY, MAYOR i ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 3 of 3 ° y ~ O d ° N p ° ~ O cd O 'O O O Q Q Q Q Q Lr) z z z z z z 1 y o o o > y o3n '3 z Q ~n rn W z z n y a~i ~ p, ~A z z z z z Ri N C) 0 U ~j ° u CIO cn °z z z z o ~ ~ ~ ~ o o ¢ Q Q ¢ ¢ ~ z z z z 'z z z Y W ti yY~-r~i ~y 3 cn z z z z 3¢w Y ° r ao ° w g y 3 P. > 3 o ° 0 O u o°~~ o^ d ~ d d d C7 H cu W z 4° Q z z z z z ° o U ~H z z z z z z zo w° b N C U Y N .fir CC~C m O N O J O b~~A O h id ~ ~ p 'C G' ~ N N ~ N ° O m Y cd O ¢ y.,, y cd cC N b ,L' b0A N O , O U y O O U N y 4 bA 'b N Q H c~ U Q N Q C's 41 ti H gyp-, m ic+-i cd Q Exhibit 2 Q INSURANCE TECHNOLOGIES AND PROGRAMS, INC. 8455 COIeSVille Road, Suite 1025 • Silver Spring, Maryland 20010 301-535-4590 • Fax: 301-585-4098 • Email: 1nsTChPrg@aol.COm Toll Free: 366-535-4590 April 14, 2006 k . Mr. Marls Nelson City of Denton E-mail: Mark.Nelson0cityofdenton.com RE: Denton Air Fair Dear Mark: This letter is in response to questions regarding average limits of liability carried by ` sponsors of air shows and aviation related events. '4e w c . We are the major insurance broker for insurance coverage on air shows in North America. Each year, we provide insurance to more than 200 shows, including many of the larger air shows held each year, i.e. San Francisco Fleet Week, Springfield, IL, Fort Worth, TX, and Cleveland, OH. ,4t 4 - .i tl f a > Of the shows to whom we provide coverage, approximately 60% carry limits of $1 or ;q $2 million; 36% carry limits of $5 million and the remaining 4% carry limits in excess of $5 million. x. Factors which may affect the sponsor's decision on what limit to carry generally include {d o- . anticipated attendance, whether or not attendance is paid or free and the type of activities planned for the event, aerobatics, jet teams, jet cars or monster trucks. x Please note, we are providing statistical information only and in no way recommend any limit of coverage for your specific event. If you need additional information, we will be pleased to provide it. Thank you. x = = Sincerely Aa < r Susan AnieyJ all' t Y •yt. x ' 6'We x n •Tfi+ - . unmrnor Experience Givea You The Edge SImAuihodty Exhibit 3 I DRAFT MINUTES 2 3 AIRPORT ADVISORY BOARD MEETING 4 APRIL 12, 2006 5 6 After determining that a quorum was present, the Airport Advisory Board convened in a 7 Regular Meeting on Wednesday, April 12, 2006 at 5:37 p.m. in the Denton Civic Center 8 Building in the Community Room at 321 East McKinney, Denton, Texas. 9 10 BOARD MEMBERS PRESENT: Chairman Rick Woolfolk, Vice Chairman Don Smith, 11 Bob Eames, Larry Luce, John Kristoferson, and Charles Brown. 12 13 BOARD MEMBERS ABSENT: Jay Anderson, excused absence. 14 15 STAFF MEMBERS PRESENT: Mark Nelson, Chief Transportation Officer, Tim 16 Whitman, Airport Manager, Julie Mullins, Aviation Assistant, and Herb Prouty, 17 Consulting Attorney. 18 19 PUBLIC PRESENT: Bert Yuttal, David Schulman, Mark Hanna and Amanda Addington. 20 21 I. Receive a report, hold a discussion and provide a recommendation on the sale 22 of alcoholic beverages at the 2006 Denton Air Fair. 23 24 Mr. Nelson explained that the Denton Air Fair Committee has requested 25 permission to sell alcohol beverages on Airport property during the May 20 26 and 21, 2006 Denton Air Fair. Mr. Nelson outlined two primary issues: 27 28 1. Is there a desire by the Airport Board to consider the sale of 29 alcohol at the Denton Air Fair and if so what are the 30 parameters for the sale of alcoholic beverages. 31 32 2. The need for City Council consideration if the sale alcohol 33 is recommended for the 2006 Denton Air Fair. 34 35 Mr. Nelson discussed an airport questionnaire on alcohol sales at air show 36 events at other host sites as well as alcohol sales at other events on the City of 37 Denton property, more specifically Jazz Fest. Mr. Nelson requested that the 38 Board consider two other issues related to the sale of alcohol at the Air Fair; 39 will the sale of alcohol promote or otherwise provide a positive benefit or 40 impact to the event, and should the Airport participate in revenue sharing 41 opportunities associated with alcohol sales. 42 43 Amanda Addington, Marketing Director for the Denton Air Fair Committee, 44 gave a report and presented a proposal on the Denton Air Fair Committee 45 request to sell alcoholic beverages at the 2006 Denton Air Fair. Ms. 46 Addington stated that EVQ had been approached by a national beer distributor Exhibit 4 1 to participate as a substantial sponsor for the event in exchange for the 2 opportunity to sell their product at the event. Ms. Addington indicated that 3 she contacted various departments in the City to determine what permits, 4 regulations and procedures would be required to effectuate the sale of alcohol 5 on Airport property during the event. Ms. Addington outlined a proposal that 6 identified steps that would be taken by the Air Fair Committee and EVQ to 7 ensure a safe environment as it relates to alcohol sales stating that the Texas 8 Alcohol and Beverage Commission would grant a three-day permit facilitated 9 through the Denton Police Department for this activity. The plan stated that 10 alcohol will be sold in one central location, alcohol may not be brought out of 11 the designated area, additional security would need to be staged in the area, 12 appropriate training would be provided to those serving alcohol and that 13 alcohol sales would be limited between the hours of 12-4 PM. Ms. Addington 14 further stated that the Air Fair Committee has agreed to include a liquor 15 liability clause as part of the liability policy for the event. 16 17 Mr. Prouty, conferred the liquor liability clause would be required and 18 provided an itemized discussion on the insurance requirements as outlined by 19 Risk Management stating that Risk Management would prefer that insurance 20 company have a rating of A+ or A- and the City of Denton will not be 21 responsible for any additional cost associated with security. 22 23 The Airport Advisory Board recommended the Airport and the Air Fair 24 Committee not enter into a revenue sharing agreement as it relates to revenues 25 generated through the sale of alcoholic beverage since this will be considered 26 a trial opportunity to evaluate the issue. 27 28 Bob Eames made a motion to recommend the approval of alcohol sales at the 29 Denton Air Fair with the provisions of enhanced insurance requirements, 30 adding a liquor liability clause, requiring the insurance company have a A+ or 31 A- rating and ensuring that vendors selling alcohol have requisite training to 32 sell alcohol and if necessary, amend Chapter 3 of the City Code to authorize 33 insurance in the amount of $5,000,000. Mr. Brown seconded the motion. The 34 motion carried 5-0, Dr. Smith abstained. 35 36 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: City Manager's Office CM: Howard Martin, 349-8232 SUBJECT Consider an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Our Daily Bread to assist in providing food supplies for the homeless and destitute in Denton; providing for the expenditure of funds therefore; and providing an effective date. BACKGROUND Mayor Pro Tem Perry McNeill has made a request for the expenditure of $200.00 to Our Daily Bread. Per the contract, the funds are to be used by Our Daily Bread to help support a feeding program for the homeless and destitute in Denton. Funds will be distributed with appropriate receipts upon the approval of the ordinance by the City Council. Respectfully submitted: Howard Martin City Manager Prepared by: Linda Holley Executive Assistant SAOur Documents\Ordinances10610ur Daily Bread Ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND OUR DAILY BREAD TO ASSIST IN PROVIDING FOOD SUPPLIES FOR THE HOMELESS AND DESTITUTE IN DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Our Daily Bread, a Texas Non-Profit Corporation, has requested funding for food supplies to support their feeding program to the homeless and destitute in Denton (the "Program"); and WHEREAS, the City Council of the City of Denton hereby finds that the Program and the agreement between the City and Our Daily Bread. attached hereto and made a part hereof by reference (the "Agreement") serve a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Agreement, including the expenditure of funds as provided in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 52006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. S (ITY ATTORNEY BY: gXontingency FundslCity Council'TY 20061Perry McNei111Our Daily Bread\Our Daily Bread 2006 contract.doc SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE OUR DAILY BREAD This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and Our Daily Bread, a Texas Non-Profit Corporation, hereinafter referred to as "Our Daily Bread": WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest as it will provide for a federal program for the homeless and destitute within the City, among other things; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES Our Daily Bread shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by the Our Daily Bread to help support a feeding program for the homeless and destitute in Denton. 11. OBLIGATIONS OF OUR DAILY BREAD In consideration of the receipt of funds from City, Our Daily Bread agrees to the following terms and conditions: A. Two Hundred Dollars and no/l 00 ($200.00) shall be paid to Our Daily Bread by City to be utilized for the purposes set forth in Article I. B. Our Daily Bread will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement. C. Our Daily Bread will permit authorized officials of City to review its books at any time. D. Upon request, Our Daily Bread will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. Our Daily Bread will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. Our Daily Bread will appoint a representative who will be available to meet with City officials when requested. G. Our Daily Bread will submit to City copies of year-end audited financial statements. III. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within the following time frame: April 20, 2006 through September 30, 2006, unless the contract is sooner terminated under Section VII "Suspension or Termination". IV. PAYMENTS A. PAYMENTS To OUR DAILY BREAD. City shall pay to Our Daily Bread the sum specified in Article II after the effective date of this Agreement. B. EXCESS PAYMENT. Our Daily Bread shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to Our Daily Bread; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. V. EVALUATION Our Daily Bread agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. Our Daily Bread agrees to make available its financial records for review by City at City's discretion. In addition, Our Daily Bread agrees to provide City the following data and reports, or copies thereof: A. All external or internal audits. Our Daily Bread shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any major changes in program services. D. To comply with this section, Our Daily Bread agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and the services performed under this Agreement. Our Daily Bread's record system shall contain sufficient Page 2 of 7 documentation to provide in detail full support and justification for each expenditure. Our Daily Bread agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. E. Nothing in the above subsections shall be construed to relieve Our Daily Bread of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term of this Agreement, Our Daily Bread shall deliver to City copies of all notices of meetings of its Board of Directors, setting forth the time and place thereof wherein this program is a part of the subject matter of the meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. Our Daily Bread understands and agrees that City's representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of Our Daily Bread's governing body shall be available to City within ten (10) working days of approval. VII. TERMINATION The City may terminate this Agreement for cause if Our Daily Bread violates any covenants, agreements, or guarantees of this Agreement, the Our Daily Bread 's insolvency or filing of bankruptcy, dissolution, or receivership, or the Our Daily Bread's violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. VIII. EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. Our Daily Bread shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Our Daily Bread will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. In the event of Our Daily Bread's non-compliance with the non-discrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and Our Daily Bread may be barred from further contracts with City. Page 3 of 7 IX. WARRANTIES Our Daily Bread represents and warrants that: A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as of the date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of Our Daily Bread on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of Our Daily Bread. C. No litigation or legal proceedings are presently pending or threatened against Our Daily Bread. D. None of the provisions herein contravenes or is in conflict with the authority under which Our Daily Bread is doing business or with the provisions of any existing indenture or agreement of Our Daily Bread. E. Our Daily Bread has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. F. None of the assets of Our Daily Bread are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by Our Daily Bread to City. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. B. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. Page 4 of 7 C. Our Daily Bread shall notify City of any changes in personnel or governing board composition. XI. INDEMNIFICATION To the extent authorized by law, the Our Daily Bread agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Our Daily Bread or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of Our Daily Bread, its officers, employees, agents, subcontractors, licensees and invitees. X11. CONFLICT OF INTEREST A. Our Daily Bread covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Our Daily Bread further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. Our Daily Bread further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself/herself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. XIII. NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand-delivery or facsimile, addressed to Our Daily Bread or City, as the case may be, at the following addresses: Page 5 of 7 CITY OUR DAILY BREAD City of Denton, Texas George Gibson, Treasurer Attn: City Manager Our Daily Bread 215 E. McKinney 300 West Oak Street Denton, TX 76201 Denton, TX 76201 Fax No. 940.349.8591 Fax No. 940.891.2718 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XIV. MISCELLANEOUS A. Our Daily Bread shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to Our Daily Bread hereunder, or any other act or failure of City to insist in any one or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Our Daily Bread. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. Page 6 of 7 IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the day of , 2006. CITY OF DENTON, TEXAS BY: EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: OUR DAILY BREAD BY: Zr1 GEOR IBSON,TREASURER ATTEST: BY: BO SECRETARY Page 7 of 7 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Legal Department CM/DCM/ACM: Jerry E. Drake, Jr., Deputy City Attorney SUBJECT: AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING SETTLEMENT OF LITIGATION STYLED SHELDON BROMBERG V. CITY OF DENTON, CAUSE NO. 2005-40017-362, CURRENTLY PENDING IN THE 362ND DISTRICT COURT OF DENTON COUNTY; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEYS TO ACT ON THE CITY'S BEHALF IN EXECUTING ANY AND ALL DOCUMENTS, AND TO TAKE OTHER ACTIONS NECESSARY TO FINALIZE THE SETTLEMENT AND RELEASE OF CLAIMS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. BACKGROUND: In 2005, Sheldon Bromberg filed suit against the City of Denton to invalidate a DME easement and for damages as a result of the placement of an above-ground utility box. OPTIONS: Execute the Compromise Settlement Agreement and Release of All Claims or continue defending the City of Denton. RECOMMENDATION: The Legal Department recommends that the City Council authorize the City Manager to execute the Settlement Agreement and Release of All Claims for reasons previously addressed in the City Attorney Status Report. FISCAL INFORMATION:. The settlement of $100 will be paid out of the Risk Retention Fund. Respectfully submitted, Jerry E. Drake, SAOur Documents\M€scel€aneousNO61agenda information sheet-6romherg.doc Low ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING SETTLEMENT OF LITIGATION STYLED SHELDON BROMBERG V. CITY OF DENTON, CAUSE NO. 2005- 40017-362, CURRENTLY PENDING IN THE 3Q DISTRICT COURT OF DENTON COUNTY; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEYS TO ACT ON THE CITY'S BEHALF IN EXECUTING ANY AND ALL DOCUMENTS, AND TO TAKE OTHER ACTIONS NECESSARY TO FINALIZE THE SETTLEMENT AND RELEASE OF CLAIMS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the Compromise Settlement and Release of All Claims attached hereto and made a part hereof, in litigation styled Sheldon Bromberg V. City of Denton, Cause No. 2005-40017-362, currently pending in the 362nd District Court of Denton County, Texas. SECTION 2. The Interim City Manager and City Attorneys are hereby authorized to act on the City's behalf in approving and executing any and all documents, and to take other actions necessary, to finalize the settlement and release of claims. SECTION 3. The Interim City Manager is hereby authorized to expend the funds in accordance with the settlement. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO AS TO E , B S:\Our IJocurne=\Ordinan=NO6\brandxrg sett3 ordiamce.doc CAUSE NO. 2005-40017-362 SHELDON BROMBERG, § IN THE DISTRICT COURT Plaintiff § V. § 362xD RMICIAL DISTRICT CITY OF DENTON, TEXAS, § Defendant § OF DENTON COUNTY, TEXAS COMPROMISE SETTLEMENT & RELEASE OF ALL CLAIMS KNOW ALL MEN BY THESE PRESENTS: That it is agreed by and between PLAINTIFF, Sheldon Bromberg, and the RELEASED PARTY identified as the City of Denton, Texas (Defendant) and its past, present, and future officers, elected officials, employees, agents, and attorneys (all in both the it official and individual capacities), and their respective insurers, and those in privity with any of thetas, as follows: Within 60 days of the execution of this settlement agreement, the RELEASED PARTY will remove the existing switch box from the Sherwood Mobile Home Park, which is on the real property located at 3750 Pockrus Page Road, Denton, Texas, 76208 (the `property"), and install a rust-free flat plate type metal cover installed flush against the existing pad, and provide fill dirt and sod, if requested by PLAINTIFF, to allow PLAINTIFF to slope the surrounding soil up to near the height of the existing concrete pad. If such fill dirt and sod are requested, it is expressly agreed and understood that RELEASED PARTY makes no warranty with regard to the adequacy of the design or installation, or the impact that such fill may have upon drainage, and that PLAINTIFF assumes all responsibility for the design, and any impact that it may have upon drainage. To the extent that any of these activities require access outside the existing right-of-way or easements, PLAINTIFF hereby grants a temporary license to RELEASED PARTY to access the site and perform the actions set forth herein. Additionally, the RELEASED PARTY will pay to PLAINTIFF the total aggregate sum of one hundred and no/100 dollars ($100.00). In addition, the RELEASED PARTY agrees that - with respect to the Electric Easement at issue in this lawsuit entered into by the RELEASED PARTY and PLAINTIFF and recorded on COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE I October 28, 2003 - the RELEASED PARTY will not locate an above-ground switch or add-on any other above-ground electrical componerts on the property, aside from normal maintenance on existing electrical components on the property, for so long as (1) PLAINTIFF owns the property; and (2) the use of the property does not change. PLAINTIFF and the RELEASED PARTY agree that this settlement agreement is not transferable, and that any subsequent purchaser of the property will not have standing to enforce the terms of this settlement agreement. Similarly, PLAINTIFF and the RELEASED PARTY agree that if any subsequent purchaser of the property elects to take legal action against the RELEASED PARTY for claims concerning the Electric Easement or claims growing out of or in any way connected with the incidents made the basis of this suit, as more fully described in the pleadings on file, PLAINTIFF will NOT and does not indemnify and will NOT and does not save harmless the RELEASED PARTY of and from all such claims, demands, costs, or expenses arising out of any injuries and damages sustained by any such subsequent purchaser of the property or by any of his successors, assigns, or respective natural or adoptive family members or relatives. For and in consideration of said payment and other valuable consideration stated herein, the receipt and sufficiency of which is hereby acknowledged, PLAINTIFF hereby fully releases, discharges, and acquits the RELEASED PARTY from all actions, causes of action, claims (including subrogation claims, claims for contribution or indemnity as to money paid in connection with this settlement), and demands, on account of or in any way growing out of any and all negligence, intentional misconduct, violation of Constitutional or statutory rights, conspiracies, breach of any duty of good faith and fair dealing, damage to reputation; fraud, trespass, mental anguish, psychic injury, loss of wages, loss of profits, loss of money, damage to property, taking of property, attorney fees, pre- and post judgment interest, and all other causes of action and damages whether known or unknown, related to the incidents in question, and whether heretofore asserted or not, owned or possessed by PLAINTIFF against RELEASED PARTY growing out of or in any way connected with the incidents made the basis of this suit, all as more fully described in the pleadings on file herein, to which reference 's made for more complete description; any events or COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE 2 litigation connected with or growing out of said incidents. PLAINTIFF hereby agrees to indemnify and save harmless the said RELEASED PARTY of and from all further claims, demands, costs, or expenses aris ing out of any injuries and damages sustained by PLAINTIFF or by any of his respective natural or adoptive family members or relatives, as a result of said incidents; any of the events connected with, or growing out of, said incidents. Claims for breach cf this settlement agreement are not released by this settlement agreement. PLAINTIFF understands and agrees that this agreement is in full satisfaction of all injuries and damages of a disputed claim arising on account of the above described events, and that he will receive no further compensation therefrom. Further, neither this Agreement nor the consideration paid shall be construed as an admission of liability on the part of the RELEASED PARTY, by whom liability is expressly denied. PLAINTIFF agrees to not assert or prosecute any further claims or lawsuits against the RELEASED PARTY related to claims released, as described above. This release is intended to constitute a general release by PLAINTIFF of the RELEASED PARTY of all claims of any kind, known or unknown, related to the incidents in question. To the extent any claims or causes of action have not been released by this settlement agreement, PLAINTIFF hereby assigns those claims or causes of action to the RELEASED PARTY. For and in consideration of PLAINTIFF'S dismissal of this lawsuit and other valuable consideration stated herein, the receipt and sufficiency of which is hereby acknowledged, the RELEASED PARTY hereby fully releases, discharges, and acquits PLAINTIFF from any and all claims and/or causes of action and/or damages, whether known or unknown, related to the incidents in question, and whether heretofore asserted or not, owned or possessed by the RELEASED PARTY against PLAINTIFF growing out of or in any way connected with the incidents made the basis of this suit, all as more fully described in the pleadings on file herein, to which reference is made for more complete description; any events or litigation connected with or growing out of said incidents. The RELEASED PARTY hereby agrees to indemnify and save harmless the said PLAINTIFF of and from all further claims, demands, costs, or expenses arising out of any injuries COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE 3 and damages sustained by the RELEASED PARTY as a result of said incidents; any of the events connected with, or growing out of, said incidents or this settlement. The RELEASED PARTY understands and agrees that this agreement is in full satisfaction of all injuries and damages of a disputed claim arising on account of the above described events, and that it will receive no further consideration therefrom. Further, neither this Agreement nor the consideration paid shall be construed as an admission of liability on the part of the PLAINTIFF, by whom liability is expressly denied. The RELEASED PARTY agrees to not assert or prosecute any further claims or lawsuits against the PLAINTIFF related to claims released, as described above. This release is intended to constitute a general release by the RELEASED PARTY of PLAINTIFF of all claims of any kind, known or unknown, related to the incidents in question. To the extent any claims or causes of action have not been released by this settlement agreement, the RELEASED PARTY hereby assigns those claims or causes of action to PLAINTIFF. Further, PLAINTIFF expressly warrants that there are no outstanding unpaid property damage subrogation claims and it is expressly understood and agreed that PLAINTIFF has already paid or will pay all property damages associated with the property in question, and that PLAINTIFF will defend, indemnify, and hold harmless the said RELEASED PARTY, of and from the payment of such subrogation claims. PLAINTIFF further represents and warrants that the law firm of Thompson & Knight LLP is the only counsel employed by him to represent him with regard to the aforementioned claim and with regard to the advisability of entering into this Agreement, and PLAINTIFF has been fully advised by said counsel regarding his rights and the execution of this Agreement. However, if there are any other attorneys who have been employed by PLAINTIFF in connection with claims arising from this suit, then PLAINTIFF shall be responsible for these fees or claims and PLAINTIFF shall INDEMNIFY, DEFEND, AND HOLD THE RELEASED PARTY HARMLESS for any such attorney fees or claims made by the other attorneys. PLAINTIFF expressly warrants that that no member of his family has suffered any psychic injury, mental anguish and/or damage to the familial relationship as a result of the events in question COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE 4 or as a result of PLAINTIFF'S alleged damages and injuries. PLAINTIFF agrees to defend, hold harmless and indemnify the RELEASED PARTY from the payment, and for the defense, including, expenses, and reasonable attorney fees, of any and all such claims for loss of consortium, psychic injury, mental anguish anchor damage to the familial relationship. PLAINTIFF hereby represents and warrants to the RELEASED PARTY and to the Court that no promises, representations or agreements not set out herein have been made to him; that this Compromise Settlemert & Release of All Claims is executed without reliance upon any statement or representation of any person or parties released or their representatives, concerning the nature and extent of the injuries, damages and/or legal liability therefor, that acceptance of the consideration set forth herein is a full accord and satisfaction of a disputed claim, which is incapable of being exactly determined, and for which liability is expressly denied, and that this Compromise Settlement & Release of All Claims is made of his own free will and accord after consulting with and acting upon the advice of his attorney. INDEMNITY PLAINTIFF AND THE RELEASED PARTY RELEASE AND GIVE UP ANY CLAIM THAT EITHER HAS AGAINST THE OTHER RELATED TO THE INCIDENTS IN QUESTION. THE PARTIES UNDERSTAND AND AGREE THAT THIS IS A FULL AND FINAL GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT FOR ANY MATTER OR THING DESCRIBED OR REFERRED TO HEREIN. THE PARTIES AGREE THAT THIS GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT MAY BE PLEADED AS AN ABSOLUTE AND FINAL BAR TO ANY AND ALL SUIT OR SUITS PENDING OR WHICH MAY HEREAFTER BE PENDING OR PROSECUTED BY PLAINTIFF OR THE RELEASED PARTY AGAINST THE OTHER, OR ANYONE CLADUNG BY, THROUGH, OR UNDER THE PARTIES, AND PLAINTIFF AND THE RELEASED PARTY AGREE TO BRING NO FURTHER ACTION OF ANY ]KIND AGAINST THE OTHER FOR DAMAGES ARISING FROM THE INCIDENT DESCRIBED ABOVE, AND PLAINTIFF FURTHER AGREES TO COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS -PAGE 5 DEFEND, INDEMNITY, AND HOLD HARMLESS THE RELEASED PARTY FROM ANY ACTION BROUGHT BY, THROUGH, OR UNDER PLAINTIFF, SEEIONG TO RECOVER DAMAGES DIRECTLY OR DERIVED FROM 'T'HOSE DAMAGES OR CLAIMS THE PARTIES ARE CLAIMING AS A RESULT OF THIS INCIDENT. THIS OBLIGATION TO INDEMNIFY, DEFEND, AND HOLD HARMLESS IS BINDING UPON PLAINTIFF REGARDLESS OF THE CAUSE OF INJURIES OR DAMAGES COMPLAINED OF OR OF FAULT. IT IS SPECIFICALLY AGREED THAT PLAINTIFF SHALL DEFEND, INDEMNIFY, AND HOLD HARMLESS THE FOR ITS OWN NEGLIGENCE, IF ANY, AS WELL AS THE NEGLIGENCE, IF ANY, OF ANY OTHER PARTIES MENTIONED OR REFERRED TO IN THIS DOCUMENT, RELATING TO INJURIES WHICH RESULTED FROM THE INCIDENTS MADE THE BASIS OF THIS SUIT, FROM ANY CAUSE OF ACTION BROUGHT BY, THROUGH OR UNDER THE PARTIES. THE PARTIES FURTHER AGREE THAT THIS GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT SHALL BE CONSTRUED UNDER THE LAWS OF THE STATE OF TEXAS. AND FOR THE SAME CONSIDERATION, PLAINTIFF AND THE RELEASED PARTY SOLEMNLY STATE AND AFFIRM: THAT THIS GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT IS NOT BEING MADE BECAUSE OF ANY PERSUASIVE STATEMENT OR REPRESENTATION BY ANYONE WHOMSOEVER OR FOR ANY REASON OTHER THAN THE PAYMENT AND CONSIDERATION STATED HEREIN, AND THAT THIS GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT IS MADE BY THE PARTIES WITH FULL KNOWLEDGE THAT THE PARTIES' INJURIES MAY NOT BE FULLY UNDERSTOOD BY THE PARTIES AT THIS TIME, AND THAT NO RECOVERY ON ACCOUNT OF THE MATTERS DESCRIBED HEREIN MAY HEREAFTER BE HAD FROM ANYONE WHOMSOEVER. PLAINTIFF AGREES THAT THE MONEY PAID COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE 6 FOR THIS GENERAL RELEASE, SETTLEMENT, AND INDEMNITY AGREEMENT IS NO ADMISSION OF LIABILITY AND PLAINTIFF WILL NEVER CLAIM THAT IT IS. FOR THE SAME CONSIDERATION, it is agreed that the above-styled suit will be dismissed with prejudice to refiling the same, and that costs of court will be taxed to the party incurring the same. If any provision of this Settlement Agreement is or may be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless survive and continue in full force and effect without being impaired or invalidated in any way. Although originally drafted by attorneys for the RELEASED PARTY, this Compromise Settlement & Release of All Claims is a contract which is the product of negotiations between the parties and attorneys for the parties and which shall, in the event of any dispute over its meaning or application, be interpreted fairly and reasonably, and neither more strongly for or against either party. This document contains the entire agreement of the parties hereto and supersedes all prior written or oral agreements. This settlement agreement may not be amended, altered, modified or changed in any way except in writing signed by all the parties to this settlement agreement. This settlement agreement shall be governed and construed in accordance with the laws of the State of Texas, except that any conflict of law rule of that jurisdiction that may require reference to the laws of some other jurisdiction shall be disregarded. THE PROVISIONS OF THIS COMPROMISE SETTLEMENT & RELEASE OF ALL CLAIMS ARE CONTRACTUAL AND NOT MERE RECITALS. This agreement may be executed in identical counterparts or copies and/or on separated signature pages and/or by facsimile transmission, any or all of which when taken together shall be deemed an original for all purposes and all of which shall constitute one and the same agreement. COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS - PAGE 7 04/18/2006 30:35 FRX 214 J6y lfhl INu#YSun 5 nnlani p~vVCrv~c W7TNM OUR HANDS this day of 4 ` 2006. Mddm THE STATE OF'S ) COUNTY OF 0 W) This instrument was ad rawledged befont me an &e day of April, 2006, by Sheldon Brombut Notaay Public-sltme of California My Commission Expimrs: Cky of Denm% Terri $y: THE STATE OF 'T'EXAS ) COUNTY OF } This mat was aelrn ged befom me on the day of April, 2006, by de City of Denton, Texas. by Nowt' Public-State of Texas My Commission Expires: COMPROWSE 5ETSLLMEST AND RIEZASE Of ALL CLA00 -FACE 8 i STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) On , 2006, before me. ,~.~.J1 cwt- , a Notary Public in and for said State, personally appeared SHELDON BROMBERG, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand an seal. JILL BROUSARD Cornrnission # 1359M Notary Public - CaGiornis !m Angeles County - UyQx=. Expkas dun 7.2006 Notary P b i AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Fire ACM: Jon Fortune SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas, consenting to the inclusion of its extraterritorial jurisdiction within the proposed Denton County Emergency Services District No. 1 pursuant to Chapter 775 of the Texas Health and Safety Code; authorizing the Mayor to notify the County Commissioners Court and representative of the Denton County Emergency Services District No. 1 of this consent; and providing an effective date. BACKGROUND On April 4, 2006, the City Council held a work session to receive a report on a proposed Emergency Services District for Fire and Emergency Medical Services in the Argyle, Bartonville and Copper Canyon jurisdictions and other County areas in the City of Denton's extraterritorial jurisdiction (ETJ). Since a portion of that proposed district falls within the City's ETJ, the law requires certain notifications and timelines once the district is formally filed with the County Commissioners Court. A written request to include the City of Denton's extraterritorial jurisdiction (ETJ) in the district to be created must be presented to the City of Denton's City Council after the petition is filed under Section 775.015. This written request was officially received on March 6, 2006. The City of Denton's City Council must give written consent on or before the 60"' day after the date on which the City receives the request. This date would be on or before May 5, 2006. At that work session, the Council gave Staff direction to bring back a resolution consenting to the formation of this Emergency Services District. The Argyle Volunteer Fire District (AVFD), the fire department serving the Denton County area south of the City of Denton, Texas, including the territorial limits and jurisdictions of Argyle, Bartonville, Copper Canyon, Northlake and Corral City, as well as the Denton County Fresh Water Supply Districts encompassing the Lantana subdivision filed a petition with the County Judge of Denton County for the formation of an emergency services district pursuant to Chapter 775, Texas Health & Safety Code. It is anticipated that the issue of the creation of this district will be presented to the voters at the November 2006 uniform election. Currently, the Argyle Volunteer Fire District (AVFD) as a non-profit corporation formed by those municipalities provides fire department services through contracts with the jurisdictions as well as Denton County. However, as the area continues to grow, the Argyle Fire Department has identified that it needs to move toward a career fire department supplemented by volunteers to meet increasing service demands. An "Argyle Volunteer Fire District Evaluation and Plan" by Emergency Services Consulting recommended the creation of an Emergency Services District Page 1 of 2 (ESD) to provide emergency medial services, emergency ambulance services, and rural fire prevention and control services and to levy an ad valorem tax up to $0.10 per $100 of assessed value to fund the district. What is an Emergency Services District? Subchapter B of Chapter 775 of the Health and Safety Code outlines the procedure for creating an Emergency Services District (ESD). The process is started by submission of a petition to the County Judge from at least 100 voters who own taxable property within the proposed district. The consent to form the ESD is solicited from all cities included within the proposed boundaries. Municipal consent is also required from any city with an extraterritorial jurisdiction (ETJ) designation within the proposed district. In the case of the Argyle Volunteer Fire District (AVFD), the cities of Argyle, Bartonville, Copper Canyon, Corral City, and Northlake are included wholly (or partly) within the district's service area. The City of Denton has designated ETJ in the northern extent of the AVFD. The Commissioners Court has sole jurisdiction to grant or deny the petition. If the proposed boundary of the ESD includes cities or ETJ's, the Court must consider each of the cities and/or ETJ's. If the Court finds that the proposed district fails to meet stipulated requirements, the petition is denied. If the petition is granted, an election is scheduled to confirm the creation of the district and to authorize the imposition of a tax levy within the limits fixed by the Texas Constitution. When the election is certified and the district is created, the Commissioners Court appoints a five-member board of emergency services commissioners to serve as the districts governing board. RECOMMENDATION: Staff recommends that the City Council of the City of Denton approve a resolution consenting to the formation of the district. Improving the fire and emergency medical services on our southwestern border certainly will benefit the City's overall response plan. If the City annexes the areas within its ETJ in the future, determination of the provision of those services may be made at that time based on the impact of the financial liabilities incurred by the district to the City. This would include the option of contracting with the existing district fire department or providing the services with City resources or a combination of both. If you should have any questions, please contact me at 8830. Respectfully submitted: Ross Chadwick Fire Chief Attachment: Proposed Resolution Page 2 of 2 S:\Our Docurnents\Resolutions\0MESD Resolution-doe RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, CONSENTING TO THE INCLUSION OF ITS EXTRATERRITORIAL JURISDICTION WITHIN THE PROPOSED DENTON COUNTY EMERGENCY SERVICES DISTRICT NO. 1 PURSUANT TO CHAPTER 775 OF THE TEXAS HEALTH AND SAFETY CODE; AUTHORIZING THE MAYOR TO NOTIFY THE COUNTY COMMISSIONERS COURT AND REPRESENTATIVE OF THE DENTON COUNTY EMERGENCY SERVICES DISTRICT NO. 1 OF THIS CONSENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the cities of Argyle, Bartonville, Copper Canyon and other Denton County entities have petitioned the County Commissioners Court to create an Emergency Services District for fire and emergency medical services in the area currently served by the Argyle Volunteer Fire District in accordance with Chapter 775 of the Texas Health and Safety Code; and WHEREAS, the proposed Emergency. Services District No. I includes a portion of the extraterritorial jurisdiction of the City of Denton shown on the attached Exhibit A which is made a part of this Resolution for all purposes; and WHEREAS, in order to be included in the Denton County Emergency Services District No. 1, the City Council must consent to the inclusion of its extraterritorial jurisdiction ("ETJ") within the proposed Denton County Emergency Services District No. 1; and WHEREAS, the City Manager recommends that the City Council consent to the inclusion of the City's ETD's territory shown in the attached Exhibit A to be included within Denton County Emergency Services District No. 1; and WHEREAS, the City Council deems it in the public interest to consent to the inclusion of its ETJ within the Denton County Emergency Services District No. 1; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council hereby consents to the inclusion of the portion of its ETJ shown on the attached Exhibit A within the proposed Denton County Emergency Services District No. 1. SECTION 3. The Mayor is directed to send a true and correct copy of this Resolution to the County Commissioners Court and to the appropriate officials of the Denton County Emergency Services District No. 1 notifying them of the City Council's consent to the inclusion of this portion of its ETJ within the proposed Denton County Emergency Services District No. 1. SA0ur Documents\Reso1utions1061ESD Resolution.doc SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: %40- Page 2 of 2 a QZ x.Yr. ~ i 4 E ~ . g S L G~rpp V/ W - Ii - - Lr W W H Z W J C~ a CITY OF DENTON CITY COUNCIL MINUTES March 21, 2006 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, March 21, 2006 at 5:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Heggins, Kamp, Montgomery, Mulroy, and Thomson. ABSENT: None 1. The Council received a report and held a discussion on the City Manager search process. Mayor Pro Tem McNeill indicated that the Council Appointee Review Committee had met to discuss procedures for the search for a new city manager. He presented a pamphlet developed for the search process. The Committee was recommending that the search be done in-house and not with an outside firm. Council discussed the contents of the pamphlet. Mayor Brock suggested that the wording get away from the reflection of Denton as a "small" town and not use phrases such as "small town atmosphere". She was concerned that the pamphlet did not include any mention of topics such as economic development partnerships, Denton as a center for employment, a banking center, a regional medical destination, an education center, or a research park. She felt that the current wording did not convey what was happening in Denton. The square miles of Denton also needed to be changed since the December annexation. Mayor Pro Tem McNeill stated that the committee centered on a candidate profile rather than other language in the pamphlet. It was suggested that the Council's comments be incorporated into the pamphlet and resubmitted for Council consideration. Council Member Mulroy suggested having someone from the Public Information Office, the Mayor Pro Tem and Mayor to redraft the pamphlet as soon as possible. Mayor Pro Tem McNeill stated that another suggested change was with the budget table. It was felt that the resource and expenditure columns were confusing and suggested changing to the expenditure budget. Mayor Brock stated that the tourist and convention category needed to be reworded, as the category was confusing. Council Member Mulroy suggested using a pie chart similar to the annual brochure or consolidating some of the funds to make it easier to read. Consensus of the Council was to change to an expenditure pie chart and to include current issues such as code enforcement, economic development partnership, downtown, etc. City of Denton City Council Minutes March 21, 2006 Page 2 Council then discussed the candidate profile and whether or not to accept candidates from the private sector. A job description and costs for advertising were distributed. Consensus of the Council was to proceed as recommended. 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for March 21, 2006. Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071 1. Consultation with the City's attorneys regarding legal issues, including defense of pending litigation filed by JNC Denton Partners, LLC, 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. Regular Meeting of the City of Denton City Council on Tuesday, March 21, 2006 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards Mayor Brock presented the following proclamations: Storytelling Month Surveyors' Week Mental Retardation Awareness Month Pat Gobble Day 2. Presentation of American flag by Bob Clyatt. Bob Clyatt presented an American flag that was flown in Iraq to the Council. A. March Yard-of-the-Month Awards Mayor Brock presented the Yard of the Month awards to: Steve and Rosie Roy City of Denton City Council Minutes March 21, 2006 Page 3 Sue Hundt Gene and Sybil Gordon Walter and Cathy Hartman-Watersmart Yard NUCON Steel-Business Yard 3. CONSENT AGENDA Mayor Brock indicated that Item 3B would be pulled for separate consideration. Item 3F would not be considered. Kamp motioned, Heggins seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item 3B and 3F. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Council Member Mulroy left the meeting with a conflict of interest. Item 3B was considered. Thomson motioned, Kamp seconded to approve Item 3B. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Council Member Mulroy returned to the meeting. A. 82006-009 - A resolution by the City Council of the City of Denton approving an extension of time for the issuance of bonds by North Texas Higher Education Authority, Inc. and making certain findings in connection therewith. B. 2006-081 - An ordinance providing for the expenditure of funds for the emergency purchase of a compressor for the air conditioning unit at City Hall East in accordance with provisions of State Law exempting such purchases from requirements of competitive bidding; and providing an effective date. (File 3483- Emergency Purchase of compressor for City Hall East awarded to CBS Mechanical Services, Inc. in the amount of $29,684). C. 2006-082 - An ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement for Architectural or Engineering Services by and between the City of Denton, Texas and Teague Nall and Perkins, Inc. for the design of the Western Boulevard Project; providing for the expenditure of funds therefore; and providing an effective date. D. 2006-083 - An ordinance approving Right-of-Way Use and License Agreement between the City of Denton and Wells Fargo Bank, N.A. that will allow and accommodate the installation of electric facilities between Wells Fargo Bank N.A. property tracts situated adjacent to the right-of-way of Walnut Street and Austin Street; and declaring an effective date. City of Denton City Council Minutes March 21, 2006 Page 4 E. 2006-084 - An ordinance of the City of Denton authorizing an agreement between the city of Denton, Texas and Opening Doors Immigration Services for provision of assistance to victims of domestic violence; providing for the expenditure of funds therefore; and providing an effective date. F. This item was not considered. G. Approved tax refunds for the following property taxes: Name Reason year Amount 1. Nortex Motorsports, Inc Cycle Center of Dupliaite Payment 2005 $ 2,713.63 Denton 2. First Amcrican/Griffin, Lynelle Duplicate Payment 2005 $ 1,723?0 3. Stc«artTitle 0\ crpaymcnt 2005 $ 1,135.02 4. First Amcrican/Fleeting .ieffew & Rachel Duplicate Paymcrnt 2004 $ 1,025.16 5. Caplin~cr, Paul Duplicate Payment 2005 $ 978.80 6. M&A Texas Denton Land Ltd DCAD Supplemental 2005 $ 887.17 Change (value change) 7. First Amcrican'Scligmann, Gusta\; & Karin Duplicate Payment 2005 $ 881.821 8. Capital Title of Texas Duplicate Payment 2005 $ 825.49 9. First Amcrican/Picou, Gary Duplicate Payment 2005 $ 813.68 10. First Amcrican/Castro, An(,cl Duplicate Payment 2004 $ 811.71 11. LSI Tax Ser\ices 'Rodcr, Kenneth & Gay Duplicate Payment 2005 $ 798.34 12. First Anicnc,,in Collins«orth, Marcilla Ovcrpaymcrnt 2005 $ 793.75 13. CN11 I Parks, Inc o\ crpaymcnt 2005 $ 754.29 14. First Amcrican/Sccly .Ii-, Arthur Duplicate Paymcrnt 2005 $ 722.70 15. First Amcrican/Prickett, Joe Duplicate Payment 2005 $ 70192 16. First Amcrican/Smith, Kathleen Duplicate Payment 2005 $ 574.15 17. First Amcrican/Griffin, Lyncllc Duplicate Payment 2005 $ 560.00 18. First American/Calderon, Jose & Cruz, Duplicate Payment 2005 $ 514.17 Alicia H. Approved the minutes of: February 14, 2006 February 20, 2006 February 21, 2006 March 6, 2006 March 7, 2006 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of ordinance amending Section 35.5 of the Denton Development Code ("CODE") by adding Section 35.5.2.4, entitled "Mixed Use Residential Protection Overlay", amending the first sentence of Section 35.7.3 of the Code relating to overlay districts. The Planning and Zoning Commission recommended approval (5-0). City of Denton City Council Minutes March 21, 2006 Page 5 Brian Lockley, Plan Implementation Coordinator, stated that this was an amendment to the Code to clarify the overlay zoning process. It would add language on how to use increased setbacks, landscaping, screening or buffer requirements along the borders of existing residential uses, or to impose additional use or performance-based restrictions on proposed uses. It also indicated that a Mixed-Use Residential Protection Overlay could be established through a Zoning Amendment Procedure in conjunction with an amendment of the underlying mixed use zoning classification. The Zoning Amendment procedure would be used rather than the Denton Plan Amendment Procedure for overlay districts. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2006-085 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SECTION 35.5 OF THE DENTON DEVELOPMENT CODE ("CODE") BY ADDING SECTION 35.5.2.4, ENTITLED "MIXED USE RESIDENTIAL PROTECTION OVERLAY"; AMENDING THE FIRST SENTENCE OF SECTION 35.7.3 OF THE CODE RELATING TO OVERLAY DISTRICTS; PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE. Mulroy motioned, Montgomery seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. Agenda Item 4B dealing with an amendment of the city `s subdivision regulations was pulled from the agenda due to a court order from the Fort Worth Court of Appeals. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance of the City of Denton, Texas, certifying funding and support for the Statewide Transportation Enhancement Program Nomination Form 2006 with the Texas Department of Transportation, authorizing the city Manager to submit an application to receive funding to build the Hickory Street Corridor and Arts Walk Project under the Program and, if the grant is approved, to execute the grant agreement and take other actions necessary to implement the program; and providing an effective date. Linda Ratliff, Director of Economic Development, stated that funding would compliment other projects already in progress. The City's commitment was 20% of the funding for the project. The City would find out in April if the funding were granted. The Council's Mobility Committee recommended approval. City of Denton City Council Minutes March 21, 2006 Page 6 The following ordinance was considered: NO. 2006-086 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, CERTIFYING FUNDING AND SUPPORT FOR THE STATEWIDE TRANSPORTATION ENHANCEMENT PROGRAM NOMINATION FORM 2006 WITH THE TEXAS DEPARTMENT OF TRANSPORTATION, AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO RECEIVE FUNDING TO BUILD THE HICKORY STREET CORRIDOR AND ARTS WALK PROJECT UNDER THE PROGRAM AND, IF THE GRANT IS APPROVED, TO EXECUTE THE GRANT AGREEMENT AND TAKE OTHER ACTIONS NECESSARY TO IMPLEMENT THE PROGRAM; AND PROVIDING AN EFFECTIVE DATE. Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. Citizen Reports 1. Review of procedures for addressing the City Council. Council Member Kamp left the meeting. 2. The Council received citizen reports from the following: A. Petering Washington Ms. Washington was not present. B. Bob Clifton Mr. Clifton stated that he had found money for the city to paint the water towers. The money would come from the consulting contracts with Mike Conduff and Herb Prouty. He did not understand those contracts. He questioned why the city spent that money. C. Ed Soph Mr. Soph spoke about the safety of Safety-Kleen. He urged residents to attend a public meeting regarding Safety-Kleen's proposed expansion project in Denton. Safety-Kleen had had numerous fires on site and violations during the past several years. D. Hagar Hudspeth Ms. Hudspeth not present. City of Denton City Council Minutes March 21, 2006 Page 7 E. Lanisha Hudspeth Ms. Hudspeth not present. F. Jordan Hudspeth Ms. Hudspeth not present. G. Willie Hudspeth Mr. Hudspeth reviewed all of the topics he had brought up to council over all the years he had been coming to Council. He felt the council was not listening to the issues he had raised. He was using his right as a citizen in the hopes that someone some day would be elected who would listen to him. H. Robert Donnelly Mr. Donnelly thanked council for a response to the question he raised regarding a prior vote on an expansion of an apartment complex. He presented photos of the drainage site next to that development that showed the drainage measures were not working. He asked that the council step back and stop the project until something was in place that would work for the drainage. C. New Business The following items of New Business were suggested by Council for future agendas: 1. Council Member Mulroy asked for a memo regarding Mr. Donnelly's concerns and the related sequencing of events. 2. Mayor Pro Tem McNeill requested a work session discussion on how long campaign finance reports should be kept. 3. Council Member Heggins requested the procedure for installing speed bumps on Chambers Street. 4. Council Member Montgomery requested information on the handling of tree limbs in street right-of-ways. D. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Interim City Manager Martin did not have any items for Council. City of Denton City Council Minutes March 21, 2006 Page 8 E. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. F. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Close Meeting Items. With no further business, the meeting was adjourned at 7:40 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 3, 2006 After determining that a quorum was present, the City Council convened in a Closed Session on Monday, April 3, 2006 at 11:05 a.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Heggins, Kamp, Montgomery, Mulroy, and Thomson. ABSENT: None 1. The Council considered the following in Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071. 1. Discussed legal strategies and alternatives regarding potential litigation concerning street failures in selected subdivisions. Following the completion of the Closed Session, the City Council reconvened in open session at 12:10 p.m. 1. The Council received a report, held a discussion, and gave staff direction regarding the City's Long-Range Financial Forecast. Jon Fortune, Assistant City Manager, presented the Long-Range Financial Forecast to the Council. He stated that the responsibilities of the City Council Audit Committee had been broadened to include review of the five-year financial forecast. Fortune stated that at this point the financial forecast was not balanced. Many assumptions had been used in figuring the financial forecast. The forecast listed current revenue and expenditure assumptions and also included detailed reports on specific issues that impacted the City's financial picture. The assumptions for the Ad Valorem Tax - O&M Component of the forecast included an 8% growth in property taxes through 2008-09 and a 6% growth for 2009-10 and forward. No property tax rate increase except for CIP related $.02 of the potential $.04 tax increase for Debt Service in 2007-08. The forecast assumed no legislative changes to the tax cap on property homestead appraisals and no tax freezes for persons over the age of 65 and disabled. The forecast also assumed no new economic development agreements. Fortune stated the projection for Sales and Use Tax assumed a 2.5% growth net of existing economic development agreements. The current year-to-date budget was $409,000 over budget. The forecast did not include the impact of loss of revenue from the Fort Worth/Acme Brick agreement or the reclassification of gas well collections to a Non-Airport Gas Well Fund. It assumed no new 380 agreements. Fortune stated that there were two issues related to DME's franchise fee payments to the General Fund: the method used to calculate DME's franchise fee payment and the stability of franchise fee revenues to the General Fund because of the variable cost of natural gas, which was one of the factors impacting the Energy Cost Adjustment (ECA) rate. Currently DME pays a 4% franchise fee. City of Denton City Council Minutes April 3, 2006 Page 2 Fortune stated that the following assumptions were included in the forecast: ROI payment for all utilities was 3.5% of gross revenues. Projected ROI revenues to the General Fund assumed a 4.5% average annual increase over the next five years. No franchise fee or ROI payment from Drainage. No drainage fee payments from the General Fund. Fortune stated that they would continue the current debt issuance plan for the General Debt Service Fund. The forecast assumed an 8% growth in property taxes through 2008-09 and a 6% growth for 2009-10 and forward. Fiscal year 2007-08 assumed a $.02 cent tax rate increase - the first tax rate increase incorporated in the 2005 bond referendum. The forecast assumed no legislative changes to the tax cap on property homestead appraisals or tax freezes for persons over the age of 65 and disabled. The forecast also assumed no additional abatements or rebates. Fortune stated that the General Fund currently budgeted an amount for salary savings. This was done in order to capture the dollars that would not be spent due to vacancies. The departments would like to use their salary savings but were not able to because it was a budgeted savings. It was staff's recommendation to no longer budget an amount for salary savings, but to establish procedures to ensure that departments used the savings for one-time expenditures because it was a one-time source of funds. Forecast Assumptions Highlights included: No gas well revenues for the General Fund, except those associated with fees and inspections. Merit increases and Civil Service increases for FY2006-07 through FY2010-11 were budgeted at 4% yearly. Some position changes were budgeted. No funding for existing progression plans. Health insurance increases at 3%. TMRS increase at 7% in FY2006-07 and at 6% in FY2007-08. Council Member Mulroy stated that during the budget process, salary increases should be the first line item considered instead of last as had always been done in the past. Other forecast assumptions were: Gas, oil and diesel increases. Utilities increases. Scheduled vehicle replacements only. Did not include funding for Meet and Confer. Did include O&M for CIP projects. Included increase in fund balance 0.5% to meet 14.5% goal. Several council members stated that the detailed reports on the specific issues presented with the financial forecast were very helpful. Council Member McNeill asked the Interim City Manager if the Council would be considering an ordinance redefining the duties of the Audit Committee. Martin stated that the Audit Committee had reviewed the ordinance and the Council would consider it an upcoming meeting. Fortune briefed the Council on the FY2007 Budget Calendar. Council Member Kamp left the meeting at 1:20 p.m. The Council was to have convened in a Closed Meeting to consider the following: A. Deliberations regarding certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. City of Denton City Council Minutes April 3, 2006 Page 3 1. Receive competitive public power and financial information regarding the operations and long range financial forecast of Denton Municipal Electric; and discuss, deliberate, consider, and provide staff with direction regarding such matters. This item was not considered. With no further business, the meeting was adjourned at 1:25 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JANE RICHARDSON ASSISTANT CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 4, 2006 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 4, 2006 at 4:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Heggins, Kamp, Montgomery, Mulroy, and Thomson. ABSENT: None 1. The Council received a report, held a discussion, and gave staff direction regarding impounding vehicles for Failure to Maintain Financial Responsibility (no insurance) and the limitations of the City of Denton Vehicle Pound. Capt. Paul Abbott, Denton Police Department, presented information on the current impound yard. The current location was at the Service Center and had been at that location since 1980. The initial capacity was 75 vehicles in 1980 and was still 75 vehicles in 2006. There were associated environmental issues with the current pound with runoff from the cars into a creek next to the pound fence. The vehicle pound cost more than the revenue received. Options included maintain the current facility, build a new facility, or outsource the towing and storage. Staff was recommending outsourcing the towing and storage of the vehicles. A proposed ordinance would only apply to police initiated towing and storage requests. He had spoken with area towing businesses and they appeared to be in favor of such a proposed ordinance. The police department would maintain a smaller impound lot at the current site for evidentiary holds. Council asked if the procedure were outsourced how many officers could be redirected. Abbott replied an estimated 1.6 full time employees could be redirected. Council asked if there would be convenient storage locations if outsourced. Abbott replied that there would have to be a two- hour turnaround time. Abbott continued with information concerning towing for no insurance. Currently the city did not have the space to tow in cars with no insurance. In 2005, there were 3,136 citations for no financial responsibility. Staff was requesting direction from Council on whether to impound all non-insured vehicles identified as a result of a traffic stop or collision or impound non-insured vehicles identified as a result of a collision investigation. Staff was recommending Option 2 to impound non-insured vehicles identified as a result of a collision investigation. This would give staff time to gather information from other cities on their procedures. Council discussion - • Option 2 provided no incentive to keep up insurance. • Option 2 was a step in the right direction but did not provide a long-term solution to keeping insurance current. • An important element would be the latitude for officers to make judgment decisions on when to tow and when to not tow. • Companies would have to apply for a permit with a rotation list similar to the present practice. The companies would be local. 0 Make sure no gap in liability and insurance requirements. City of Denton City Council Minutes April 4, 2006 Page 2 Consensus of Council was to proceed with the outsourcing of the towing and storage and option 1 for towing with no insurance. 2. The Council received an updated report, held a discussion and gave staff direction regarding a proposed Emergency Services District for Fire and Emergency Medical Services in the Argyle, Bartonville and Copper Canyon jurisdictions and other County areas in the City of Denton's ETJ. Ross Chadwick, Fire Chief, stated that in the past, staff had discussions with Council on the legal ramifications of this District and how it would impact the City of Denton. The District had now been formed and Denton had 60 days to make a decision on whether to agree or oppose that formation. An election was schedule for November 2006 to form the EMS District. If the City did not plan to annex any of this area, it might consent to the district formation. If it did intend to annex some of the district it might want to oppose the formation due to financial liabilities. The staff recommendation was to provide written consent prior to May 5, 2006 for the formation of the district as filed with the County and determine the provisions of fire and EMS services to the annexed areas in the future. Consensus of the Council was to proceed with the staff recommendation. 3. The Council received a report, held a discussion, and gave staff direction regarding Fire Station #7 construction bids. Council Member Mulroy left the meeting. Ross Chadwick, Fire Chief, stated that the design specifications and plans for Fire Station #7 had gone out with 5 bids received. The average base bid was $3.4 million with a budget of $2.5 million. The selection process involved an interview committee of 9 members. The scoring process involved 7 voting members with posted scoring criteria that included cost amount and completion time; experience and reputation; personnel and subcontractors; and financial history and safety. Using these four areas, the scores were placed in a spreadsheet with the Hisaw firm rating highest. The staff recommendation was to contract with Hisaw and Associates for $3.4 million. That would require an additional $941,460 to the budget. The staff recommendation was to also allocate the expenditure of additional funds to achieve silver award LEED. The approved budget would also authorize the purchase of a fire engine and equipment for Station 7. That would require the issuance of Certificates of Obligation for $1 million to fund the additional financial requirements. Council Member Mulroy returned to meeting. 4. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of April 4, 2006. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:35 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. City of Denton City Council Minutes April 4, 2006 Page 3 1. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071 1. Consultation with the City's attorneys regarding legal issues, including defense of pending litigation filed by JNC Denton Partners, LLC, 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, plat applications, 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. 2. Considered and discussed status of litigation styled Sheldon Bromberg v. City of Denton, Cause No. 2005-40017-362, currently pending in the 362nd District Court, Denton County, Texas. 3. Consultation with the City's attorneys regarding legal issues pertaining to the place of business of an entity for determining sales tax liability, and related legal issues. 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. Item 2 of the Closed Session was not considered. Closed Session ended at 6:31 p.m. Regular Meeting of the City of Denton City Council on Tuesday, April 4, 2006 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Recognition of the receipt of the National Arbor Day Foundation's Tree City USA award presented by the Texas Forest Service to the City of Denton. City of Denton City Council Minutes April 4, 2006 Page 4 Courtney Blevins, Texas Forest Service, presented the National Arbor Day Foundation's Tree City award. Mayor Brock presented proclamations for Denton Redbud Festival Day and Sexual Assault Awareness Month. 3. CONSENT AGENDA Mayor Brock indicated that Items O and P would be pulled for separate consideration. Item F was pulled from consideration. Thomson motioned, Heggins seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Items O and P. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. A. 2006-087 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Tejas Storytelling Association for supplemental funding for entertainment at the Texas Storytelling Festival; providing for the expenditure of funds therefor; and providing an effective date. B. Approved tax refunds for the following property taxes: Name Reason year Amount 1. Lout', .lay S: Stephanie Overpayment 2005 $ 7,953.11 I Cyclc Center of Denton Duplicate Paymcnt 2005 $ 2,713.63 3. Bakcr Distributing Co ( erpaymcrnt 2005 $ 2,326.69 4. Dinsmore, Gerald Overpaymennt 2005 $ 1,502.06 5. Presbyterian Ilospital of Denton Duplicate Paymcnt 2005 $ 1,156.52 6. Presbyterian Ilospital of Denton Duplicate Paymcnt 2005 $ 1,140.35 7. Glendora Management LLC Duplicate Paymcnt 2005 $ 957.52 5. Glcndora Management LLC Duplicate Paymcnt 2005 $ 560.61 9. Glcndora Mana(reinem LLC Duplicate Paymcnt 2005 $ 800.61 10. First American Title Ins/Pearson, Duplicate Payment 2005 $ 699.76 Douglas 11. First Amencarn/I lardesty, Gerald Duplicate Paymcnt 2005 $ 615.-15 SL Susan 12. Citi Mortgage Inc Duplicate Payment 2005 $ 50399 C. 2006-088 - An ordinance of the City of Denton, Texas to declare the intent to reimburse expenditures from the Unreserved Fund Balance of the General Fund with Certificates of Obligation so that a crematorium for the Animal Shelter can be replaced; declaring an emergency and amending the 2005-06 Capital Improvement Budget to allow funding for said project; and providing an effective date. (Related costs - $90,000) D. 2006-089 - An ordinance providing for the expenditure of funds for the emergency purchase of a replacement crematorium for the Animal Services Department in accordance with provisions of State Law exempting such City of Denton City Council Minutes April 4, 2006 Page 5 purchases from requirements of competitive bidding; and providing an effective date (File 3491 - Emergency Purchase of Animal Services Crematorium awarded to FC Industries, Inc. in the amount of $75,004). E. 2006-090 - An ordinance of the City of Denton, Texas approving the First Amendment to Interlocal Cooperation Agreement by and between the DCTA and the City of Denton for the ELAP Program dated January 1, 2004; authorizing the Mayor to execute and deliver said First Amendment; accepting and recognizing that certain Letter of Understanding dated March 14, 2006, issued to the City by the Executive Director of the Denton County Transportation Authority; providing for the expenditure of funds therefor; and providing an effective date. The Mobility Committee recommended approval. F. This item was not considered G. 2006-091 - An ordinance approving an Interlocal Cooperation Agreement by and between the City of Denton, Texas and the City of Corinth, Texas to provide gas well inspection services; and providing an effective date. The Public Utilities Board recommended approval (5-0). H. 82006-010 - A resolution authorizing the City of Denton, as Trustee, to sell certain real property; consenting to the sale of certain real property to the highest bidder as provided by law; authorizing the Mayor of the City of Denton, Texas to execute a deed without warranty and any other documents necessary or appropriate to convey certain real property sold by the City of Denton, as Trustee, pursuant to section 34.05 of the Texas property tax code; and providing for an effective date. L 2006-092 - An ordinance accepting competitive bids and awarding a two year contract for Mowing for various City departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3463 - Two Year Contract for Mowing awarded to the lowest responsible bidder, for each section, in the annual estimated amount of $299,368.22). J. 2006-093 - An ordinance accepting competitive bids and awarding an annual contract for park land maintenance products; providing for the expenditure of funds therefor; and providing an effective date (Bid 3468 - Annual Contract for Park Land Maintenance Products awarded to the lowest responsible bidders as listed on Exhibit A for each section in the annual estimated amount of $45,000.) K. 2006-094 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order through the Buy Board Cooperative Purchasing Network for the acquisition of eleven refuse trucks, a scraper, a vacuum excavation system, and a Unimog for the City of Denton Solid Waste Department, and a dump truck for Water Distribution by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3484 - Interlocal Agreement for the purchase of Refuse Trucks and Heavy Equipment for Solid Waste Department and Water Distribution awarded to Holt CAT in the City of Denton City Council Minutes April 4, 2006 Page 6 amount of $564,740.00, Rush Peterbilt Dallas in the amount of $1,194,114.00, Freightliner of San Antonio, LTD. in the amount of $223,971.00, Earle Kinlaw Associates, Inc. in the amount of $40,567.30, and McNeilus Truck and Manufacturing in the amount of $749,461.00, for a total award of $2,772,853.30). The Public Utilities Board recommended approval (7-0). L. 2006-095 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order with the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of one motor pool replacement vehicle each for the City of Denton Electric Operations, Drainage, Water Production and Wastewater Biosolids Divisions by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3485 - Interlocal Agreement for the purchase of Fleet Vehicles for Electric Operations, Drainage, Water Production and Wastewater Biosolids with H-GAC awarded to Philpott Ford in the amount of $55,238, and to Romeo Equipment in the amount of $585,280 for a total award of $640,518). The Public Utilities Board recommended approval (7-0). M. 2006-096 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order through the Buy Board Cooperative Purchasing Network for the acquisition of a 12 cubic yard dump truck with OX dump body and a 2.5 cubic yard wheel loader for the City of Denton Street Division by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3486 - Interlocal Agreement for the purchase of 12 Cubic Yard Dump Truck awarded to Rush Peterbilt Dallas in the amount of $93,295, and 2.5 Cubic Yard Wheel Loader awarded to Holt CAT in the amount of $145,900 for a total award of $239,195). N. 2006-097 - An ordinance authorizing the City Manager to execute a Professional Services Agreement with the firm of Booziotis and Company Architects to provide architectural services for the design of the South Branch Library Expansion and redesign of the existing parking lot; authorizing the expenditure of funds therefor; and providing an effective date (File 3407 in an amount not to exceed $126,925). 0. 2006-098 - An ordinance of the City of Denton, Texas to declare the intent to reimburse expenditures from the Unreserved Fund Balance of the General Fund with Certificates of Obligation so that a contract may be awarded for the construction of Fire Station 7 and the purchase of a fire engine; declaring an emergency and amending the 2005-06 Capital Improvement Budget to allow funding for said project; and providing an effective date. (Related costs - $1,000,000) P. 2006-099 - An ordinance accepting sealed competitive proposals and awarding a contract for the construction of Fire Station # 7; providing for the expenditure of funds therefor and providing an effective date (RFSCP 3458 - Fire Station #7 awarded to Hisaw and Associates in an amount not to exceed $3,441,460). City of Denton City Council Minutes April 4, 2006 Page 7 Q. 2006-100 - An ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of ten Mobil Vision In- Car Digital Recording Systems for the City of Denton Police Department, which are available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 3489 - to L-3 Communications Mobile Vision, Inc. in the amount of $58,059). Council Member Mulroy left the meeting with a conflict of interest. Item O was considered. Jon Fortune, Assistant City Manager, stated that this was a mechanism to reimburse current funds by issuing certificates of obligation in next bond sale, which was scheduled in May. Kamp motioned, McNeill seconded to approve Item O. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Item P was considered. Ross Chadwick, Fire Chief, stated that this item was for the construction contract for Fire Station #7. Staff had performed a comprehensive selection process for selection of this contractor. They had agreed on a time frame and contract price with the selected bidder. Kamp motioned, McNeill seconded to approve Item P. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "nay", Thomson "aye" and Mayor Brock "aye". Motion carried with a 5-1 vote. Council Member Mulroy returned to the meeting. 4. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered a request for an exception to the Noise Ordinance for the purpose of a music festival, Fry Street Fair, conducted by Delta Lodge, in the area of Fry Street, behind Lucky Lou's, and the backyard of the Delta Lodge. The event is to be on Saturday, April 22, 2006, from 12:00 p.m. to 9:00 p.m. The exception is specifically requested for an increase in the maximum allowable decibels for an outdoor music festival from 70 decibels to 75 decibels. Charles Wiley, Police Chief, indicated that the Police Department had requested that the music end at 8:00 p.m. for security reasons and to disband the crowd. The Delta Lodge was requesting that the music end at 9:00 p.m. to allow for a better opportunity to provide a more favorable Fair to their customers. They were also requesting an increase in the noise level from 70 to 75 decibels. Amplified sound would be used for both music and public announcements. City of Denton City Council Minutes April 4, 2006 Page 8 Council discussion - • What was the staff assessment of the level of cooperation with Delta Lodge - Staff responded it was more than in previous years. • Were there any outstanding debts from the prior year left to pay - The Lodge needed to prepay UNT by April 10th in order to use UNT parking lots this year. There were no other outstanding debts. • What was the decibel level last year - Staff responded it was 70 last year with a request for 75 this year. Mark Teich, 1305 W. Oak, Denton 76201, spoke in favor of the request. Council continued discussion - • The wording of the agenda item indicated that there would be an increase in allowable decibels from 70-75. Staff had determined that the level was the same as last year so no new ground was being broken with the requested decibel level. • The main issue was a public safety issue - the changing from dispersing the crowd from dusk to dark with more potential problems with dispersing the crowd in the dark. Mulroy motioned, McNeill seconded to approve the variance subject to the public safety issue of the permit. The hours of the event would be 12 noon - 9:00 p.m. with 75 decibels allowed for the music. Delta Lodge would still need to work with the Fire Marshal's office for required permits. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. The Council considered nominations/appointments to the City's Boards and Commissions. Mayor Pro Tem McNeill nominated Charles Brown to the Airport Advisory Board. He asked that the Council consider waiving the rules and voting on the nomination at this meeting. McNeill motioned, Montgomery seconded to suspend Council rules and vote on the nomination at this meeting. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. McNeill motioned, Mulroy seconded to approve the nomination of Charles Brown to the Airport Advisory Board. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Council Member Montgomery nominated Bob Ralph to the Construction Advisory and Appeals Board. City of Denton City Council Minutes April 4, 2006 Page 9 Council Member Kamp nominated Alyson Coe to the Parks, Beautification and Recreation Board. Mayor Pro Tem McNeill nominated Philip Jordan to the Zoning Board of Adjustment as an alternate. C. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Council received citizen reports from the following: A. Bob Clifton regarding city business. Mr. Clifton indicated that the City Council needed to hire a consulting firm to hire a new city manager. He spoke on the storm drainage fee. He requested information on an explanation on information he received from a previous open records request. B. Anna Campbell regarding a noise variance and time extension for the Fry Street Fair. Ms. Campbell did not speak. C. Connie C. Williams regarding Utility and Solid Waste charges. Ms. Williams spoke on utility charges recently added regarding solid waste charges. She was a resident of Primrose Apartments. The residents of Primrose live on fixed incomes. They had their own waste disposal system and did not need city services. She felt it was an invalid charge and requested that the resident's bills be reduced by 20% and not have any solid waste charges. D. Peggy LaPoint regarding Planning Department Procedures. Ms. LaPoint spoke on the overlay zoning for the Unicorn Lake area. All of the brush and trees had been removed from the property. The developer did not have a clear-cut permit. She felt there was a serious flaw in the regulations on environmental protection for the city. She suggested there be a staff member to assist with such matters. E. Jordan Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. F. Lanisha Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. G. Hagar Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. City of Denton City Council Minutes April 4, 2006 Page 10 H. Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth was not present at the meeting. L Gerald DeMarsh regarding issues with the Denton Police Department. Mr. DeMarsh stated that in law enforcement not everyone was perfect. He had a theft of property with nothing ever recovered. He felt people in the police department and police officers should not continue employment if they did not produce results. D. New Business The following items of New Business were suggested by Council for future agendas: 1. Council Member Mulroy requested a follow up on Ms. Williams's citizen report on utility service to Primrose Apartments. 2. Council Member Mulroy requested a follow up on Ms. La Point's citizen report on clearing and grading with a synopsis on events and potential Development Code problems. E. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Interim City Manager Martin did not have anything for Council. F. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of Closed Meeting. G. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 8:00 p.m. EULINE BROCK JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEAS CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 11, 2006 After determining that a quorum was present, the City Council convened in Closed Session on Tuesday, April 11, 2006 at 4:00 p.m. in the City Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Heggins, Kamp, Montgomery, Mulroy, and Thomson. ABSENT: None In keeping with the provisions of the Public Power Utility Closed Session items, a vote was taken to determine that the item listed in 1.B.1. was an electrical competitive matter. Mulroy motioned, Kamp seconded to approve the item for a Closed Session discussion. On roll vote, Heggins "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Council convened into Closed Session at 4:08 p.m. to discuss the items listed below. 1. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071 1. Consulted with the City's attorneys on legal issues, and receive legal advice regarding proposed amendments to the codes, ordinances and standards concerning multi-family uses, mixed uses, exactions and impact fees, design standards, and the Comprehensive Plan. ["Before the City Council ("Council") may discuss, deliberate, vote, or take final action on this agenda item posted as an "electric competitive matter" under the provisions of Texas Government Code Section 551.086(c) relating to "Public Power Utility" items, and the Council must make a good faith determination by a majority vote of the members of the Council that this agenda item is an "electrical competitive matter," and satisfies the requirements of Texas Government Code Section 551.086(b)(3). A vote must be taken. The vote shall be taken during the Closed Meeting and shall be included in the certified agenda or the tape recording of the Closed Meeting. If the Council fails to determine by a majority vote of its members that this particular agenda item satisfies the requirements of Section 551.086(b)(3), then the Council may not discuss, deliberate or take any further action on that agenda item in its Closed Meeting.] B. Deliberations regarding certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086 1. Received a presentation from DME staff regarding public power and business matters regarding the pending request for proposals, and information and analysis regarding power purchase contracts; and discussed, deliberated, considered and provided staff with direction regarding such matters. 2. Received a report and held a discussion of the electric customer and megawatt-hour forecasts. City of Denton City Council Minutes April 11, 2006 Page 2 C. Consultation with Attorney - Under Texas Government Code Section 551.071 1. Consulted with the City's attorneys regarding legal issues, including defense of pending litigation filed by JNC Denton Partners, LLC, 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, plat applications, 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. Following the completion of the Closed Session that ended at 5:35 p.m., the Council convened in a 2nd Tuesday Session. 1. The Council received a report, held a discussion and gave staff direction regarding strategies for maintaining and revitalizing neighborhoods. Rick Jones, Fire Marshal, and Lancine Bentley, Parks Area Program Manager, presented strategies for maintaining and revitalizing neighborhoods. Portions of the presentation included council direction, response to community issues, multiply year process, multiple department involvement and long-term solutions. Council Member Kamp left the meeting. The International Property Maintenance Code set minimum property maintenance standards, was a centralized code, was specific to the Denton community, would be reviewed and modified on a regular basis and was consistent with other adopted codes. The IPMC recommendations included adopting the IPMC as amended, amending the IPMC to include codes found in the Denton Code of Ordinances and Denton Development Code and including additional provisions. Those additional provisions would include garage sales, storage of solid waste carts, PODS, outside storage, temporary carports, number of vehicles, general penalty for violations, single- family certificate of occupancy renewal, and a multi-family licensing inspection program. A schedule and process for adoption of the IPMC would include public input and education, a review by the Construction Advisory and Appeals Board, a review by the Planning and Zoning Commission and City Council review. IPMC resource recommendation included the addition of two Code Officers for the 2006-07 budget proposal. Property Assessment Survey - The Property Assessment Survey established base-line information for exterior structure evaluation and nuisance violations. This would be an approximate 5+ month process with a cost estimate of $80,000-$100,000. Rental Inspection Program - The Rental Inspection Program was a multi-family licensing and inspection program, and a single-family certificate of occupancy renewal program. The Multi- City of Denton City Council Minutes April 11, 2006 Page 3 Family Licensing and Inspection Program was an annual licensing and inspection program of exteriors of all multi-family properties and up to 10% of unoccupied multi-family interiors. Fees and revenue included $12.60 per unit annual licensing fee, no fee for initial inspection or 1st re- inspection, $20 for 2nd re-inspection of un-remediated violations not to exceed $40 per unit. This would produce an estimated annual revenue of $231,895. Resource recommendations included four additional Code Enforcement officers, vehicles, office and training costs with an annual expense of $283,000 for the first year. Single-Family Certificate of Occupancy renewal - This program would deal with internal and external inspections with a change of occupancy. It would involve unoccupied inspections and a certificate of occupancy issued to the owner of the property. Fees and revenue would include a $12.60 fee per year for single-family rentals, $25.20 per year for duplex rentals with no inspection or re-inspection fees. Resource recommendations included two additional Code Enforcement officers, vehicle, office and training costs. Substandard Housing - The first recommendation for this program was to complete the property assessment survey. Repair and rehabilitation compliance would be done through Code Enforcement. Resource recommendations included two additional Code Enforcement officers, vehicles, office and training costs. Summary of recommendations for 2006-07: (1) adopt IPMC, (2) conduct a property assessment survey, (3) hire two additional Code Enforcement officers and (4) begin the substandard housing program with prioritization of substandard housing and the hiring of one Code Enforcement Officer. Summary of recommendations for 2007-08: (1) rental property inspection program with the hiring of 4 Code Enforcement officers, continue to review and update the IPMC and continue the implementation of the Substandard Housing Program. 2008-09 summary recommendations: (1) continue rental property inspection program, (2) hire two Code Enforcement Officers, and (3) continue Substandard Housing Program with the hiring of a second Code Enforcement Officer. Council discussion - • There was a need to look at the property owner's perspective with the right amount of regulation for desired outcome for property standards. • Public input and education was needed before starting the process - need stakeholder's buy-in before implementing the process. Search out groups for that type of input. • Commitment was needed by Council to work these suggestions into the budget - need conceptual buy-in and keep process going to meet with various community groups. Consensus of the Council was to proceed with the staff recommendations. 2. The Council received a report, held a discussion and provided staff direction concerning a Lawn and Landscape Irrigation and Water Waste Ordinance. Dave Wachel, Water Utilities Coordinator, presented background information on the lawn and landscape irrigation ordinance. It was recently updated to comply with a series of bills passed to fulfill a statewide water conservation initiative mandated in 2003. The lawn and landscape ordinance was intended to minimize water in landscape irrigation. Initially the ordinance was to City of Denton City Council Minutes April 11, 2006 Page 4 have been implemented in two phases. However staff was suggesting implementing the ordinance in 2006 due to the possibility of a continued drought and suggestions by council members to begin implementation. Council Member Kamp returned to the meeting. Elements of the ordinance would include no outdoor watering with sprinklers during certain times of the day, requirements for new irrigation systems, prohibition of outdoor watering during any form of precipitation, and enforcement of the ordinance by a system of warnings followed by fines for continued or repeated violations. There would also be a water waste component to the ordinance, which would prohibit leaking outside faucets, leaks on customer service lines and excessive leakage of interior plumbing. The first year of implementation would only have warnings issued. Council discussion - • Not sure if want to terminate water service as the final penalty for repeated violations, consider the continued doubling of fines instead. • Not in favor of freeze/rain sensor requirement as that was too much governmental control. • Most new systems now have those types of sensors included in the system. • Consider dropping off some of the warnings issued over a period of years for better enforcement. • Do not include the termination of service, rather double the fines and then see how it goes. Consensus of the Council was to eliminate the termination of service and add the doubling of the fine again with an additional warning also added. 3. The Council received a report and held a discussion regarding the Water, Wastewater, and Solid Waste Forecasts. This item was not considered. With no further business, the meeting was adjourned at 6:45 p.m. EULINE BROCK JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Planning & Development CM: Howard Martin, 349-8232 SUBJECT A06-0001 (Cole Ranch Annexation) Hold the second of two public hearings to consider annexing approximately 3,406 acres into the corporate city limits of the City of Denton, Texas. The property is bounded by Tom Cole Road to the north. FM 2449 bisects the property near the center of the development and John Payne Road is the eastern boundary south of FM 2449. Underwood Drive is on the eastern side of the property north of FM 2449. The property is bounded on the west by H. Lively Road/C. Wolfe Road and extends to the south a distance of approximately 6,500 linear feet from FM 2449. The property to be annexed is generally located in the southwestern area of the City of Denton's Extraterritorial Jurisdiction (ETJ). BACKGROUND Applicant: SLF Cole Property, LP Dallas, TX On April 18, 2006 City Council held the first of two public hearings to consider the annexation of 3,406 acres into the corporate city limits of the City of Denton, Texas. A voluntary annexation proceeding is being considered by the City of Denton for the Cole Ranch Development. In accordance with the City's Annexation Policy Plan, approved in June 1993, the City will "access on a case by case basis" the annexation of areas in the ETJ when significant developments are proposed. • The applicant, SLF Cole Property, LP, petitioned for the voluntary annexation of approximately 3,406 acres of land into the City on January 30, 2006. The applicant is proposing to develop a mixed-use development in four phases beginning in 2008 with a projected completion date of 2025. The applicant introduced the mixed-use development to the City Council in a work session on January 30, 2006. • On February 21, 2006, staff received direction from the City Council to proceed with the annexation. • The City of Denton issued a letter of intent to annex to property owners on March 17, 2006. • On March 31, 2006, neighboring property owners were notified of the voluntary annexation with an "intent to annex" letter and official public hearing notification. To date, staff has received no letters in opposition from property owners within 200' of the proposed annexation area. (See Attachment 3). • The Comprehensive Plan identifies this area to be within Rural Areas, Industrial Areas, Regional Mixed Use Centers, Employment Centers, and Neighborhood Centers land use designations and Environmentally Sensitive Areas. OPTIONS 1. Maintain land area. 2. Delete land area. 3. Amend Service Plan. 4. Deny. RECOMMENDATION Staff recommends that the annexation proceed on schedule. ESTIMATED PROJECT SCHEDULE The annexation process is scheduled to be completed by July 18, 2006. PRIOR ACTION/REVIEW The Denton City Council held a work session regarding the proposed development on January 30, 2006. The annexation request was again heard before the Denton City Council on February 21, 2006. The City Council directed staff to proceed with the annexation. The first of the two required public hearings to consider annexing approximately 3,406 acres into to the corporate city limits of the City of Denton was heard before the Denton City Council on April 18, 2006. FISCAL INFORMATION Development of this property will increase the assessed value of the city. It will require no short-term public improvements that are the responsibility of the city. ATTACHMENTS 1. Letter from Applicant 2. Annexation Schedule 3. Location Map 4. Service Plan 5. Service Analysis 6. Notification Map Prepared By: ee,V4 vj~ Lori Shelton Planner II Respectfully submitted: Brian Lockley, AICP Acting Planning & Development Director ATTACHMENT 1 Letter from Applicant ~F pllrwdlt~ ~ Aw B~nE WUIw AID ~BOaF~aet ftr1e30d ~i?~!~ OffiWTONAM "Rome LE M CF INTENT CUFF RXWECF Oftl04 JM&WW 2% 20M Ttue Cola IV Itewd piopwa atllea IA ra P■* d swuma gwoo , and which (atom* &W le I81e amob Ofrnc" ea aavomp we ! master pianwW conm~un>- Cw aonlt Mww IF *UMMdta inWuda a Maw ftof ft rOM as aealdanlal Ianduaae Blaming a variagFd W ohs ad dK4M M but ve an ova danalgr not w ao=W Sonde hsfrunbb m JNIIW} -"wtai r■apae vmId * aarvad by Mlfp schxm acrd NgWdwQ-dqg "a $DO aIesaapPInaO0lfcMMUM W& ~facllMias. earawssaadllra edamm onad bygop upaamd agrrnmrtdLoop2BBilmugl+ ffanr and6ertam+a aflCa pvwmjgr to I,w gad dar P, v on Muds w Akpona i g Pic S1 emount of I aanllg No been PraPowd as to low! Bowe go th, d the Prop" wneietaat wwkh to CRY of D"Oft ww Ph N. Tha iddW Cm*drelr+ja~ aya- lhatir aaa Gold Ranchwntaara s d amo~ari offload I" IaNd p is bast useda anow* dgpenapexam+O9 dwcamm*,ThaLWOMWOFNorth Tam■andtmaky OfDenturshm ahgMaased iateieatiYt ihv I ~ Igg, amen also s~caan~xaadebed aA d+s~ ~ w~ -ibis ppportunMy sad Pampa Ttlfaderalapr+~Matdldpetas an approraarete fill bulda cIdo 16oftloMA amu and befg m last r Ffaalda~ut+l = 12,000 ttaellok or L~ni 3 000 tiotal bsildrryp . tnduam ■ ZXO.000 NO b LWn0 $VVIS lbet ATTACHMENT 2 ANNEXATION SCHEDULE OF Cole Ranch Annexation (A06-0001) Tuesday, April 18, 2006 City Council conducts first public hearing at 6:30 PM Wednesday, April 26, 2005 Planning and Zoning Commission public hearing to make a recommendation to City Council regarding the proposed annexation. Tuesday, May 2, 2006 City Council conducts second public hearing at 6:30 PM Tuesday, May 23, 2006 City Council conducts first reading of annexation ordinance. (Special Called Meeting) Wednesday, May 24, 2006 Planning and Zoning Commission public hearings - make a recommendation to City Council regarding the zoning and comprehensive plan amendment Tuesday, July 18, 2006 Second reading and adoption of annexation ordinance and public hearing for zone change and comprehensive plan amendment request. City Council by simple majority vote takes final action of zone change request. ATTACHMENT 3 Location Map F IAan Ranch Lend atyUff" We Ranch urn~ Q PMMW ATTACHMENT 4 SERVICE PLAN CITY OF DENTON ANNEXATION PLAN FOR A06-0001 (Cole Ranch - 135 and Tom Cole Road) 1. AREA ANNEXED The annexation area is located in the southwestern portion of Denton's Extraterritorial Jurisdiction and contains approximately 3,406.12 acres generally located west of Interstate 35 West, south of Tom Cole Road. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021, 43.065, and 43.065(b)-(o) (Vernon 1999, as amended). Municipal facilities and services to the annexed area described above will be provided or made available on behalf of the City in accordance with the following plan. The City shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the city with similar topography, land use, and population density. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection, Code Enforcement, and Animal Control Police service, including patrolling, response to calls, and other routine functions, will be provided to the property upon the effective date of the annexation using existing personnel and equipment. Code enforcement and animal control services will also be provided to the property upon the effective date of the annexation. B. Fire Protection Fire protection (within the limits of existing hydrants) and emergency medical services will be provided to the property upon the effective date of the annexation. The estimated emergency response time in this area is 10 minutes, which is similar to responses for surrounding properties within the city limits. The City of Denton will provide emergency medical services ("EMS"). C. Roads and Streets Roads and streets, which have been properly platted, duly dedicated, and accepted by the City of Denton and/or Denton County shall be maintained by the City of Denton on the effective date of the annexation. Installation and maintenance of street signs, street lighting and traffic control devices will be maintained by the City of Denton on the effective date of the annexation. D. Parks and Recreation Facilities Parks and recreational facilities in the area to be annexed will begin upon the effective date of the annexation according to the 2000 Parks and Recreation Master Plan. No parks are currently located within the proposed annexation area. Denton neighborhood park facilities are located within reasonably close distance of the proposed annexation area. Residents of the proposed annexation area will be able to use existing City of Denton park and recreation facilities and programs. E. Library Services Library services will be made available on the effective date of the annexation on the same basis and at the same level as similar library facilities are maintained throughout the city. F. Building Inspections and Consumer Health Services Building inspections and consumer health services will be made available on the effective date of the annexation on the same basis and at the same level as similar facilities are maintained throughout the City. Both services are provided on a "cost recovery" basis, and permit fees offset the costs of services delivered. Incomplete construction must obtain building permits from the Building Inspections Department of the City of Denton. G. Planning and Development Services Planning and development services will be made available on the effective date of the annexation. The Planning and Development Department currently services this property by way of administration of the Denton Development Code of the Code of Ordinances, concerning subdivision and land development regulations. City Council adopted The Denton Plan, the city's 1999-2020 comprehensive plan, by Ordinance 99- 439 on December 7, 1999. The Future Land Use Plan addresses both land in the city and its ETJ, and the subject tracts contain Neighborhood Centers, Industrial Centers, Regional Mixed Use Centers, Employment Centers and 100 year Floodplain/ Environmentally Sensitive Areas. The Denton Plan designates future land uses to manage the quality and quantity of growth by organizing the land use patterns, by matching land use intensity with available infrastructure, and by preserving floodplains as environmental and open space corridors. The Denton Plan will be used as a basis for final zoning classifications after the properties are annexed. UTILITY (RATEPAYER) SERVICES H. Solid Waste Collection The City of Denton is the exclusive residential and commercial solid waste service provider in the City. The Department is an entirely fee based operation and received no resources from taxes. Solid waste collection service will be provided to the property upon the effective date of the annexation using existing personnel and equipment. Residential and commercial properties have the option to choose solid waste service from a private company or the City of Denton during the first two years after the effective date of annexation, after which the City of Denton will become the exclusive service provider. The City of Denton Solid Waste Department will honor existing contracts with private solid waste service providers after the effective date of this annexation in accordance with Texas Local Government Code, Section 43.056(o) (Vernon Supp. 2000). To receive solid waste collection service, the customer must contact the City of Denton Customer Service Office and submit a request/application for service. 1. Water/Wastewater Facilities Maintenance of water and wastewater facilities in the area to be annexed that are not within the service area of another water or wastewater utility will begin upon the effective date of the annexation using existing personnel and equipment. Currently, the majority of the area to be annexed is provided with a private water well and a private wastewater system. A City of Denton waterline exists in the annexation area. The City shall provide a level of water and wastewater service, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or projected in the area. J. Drainage Services Drainage maintenance will be provided to the property upon the effective date of the annexation. The City shall provide a level of drainage services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or projected in the area. K. Electrical Services Denton Municipal Electric is certified by the State and is obligated to provide electric utility service to the annexation area should a request be made by a property owner. Electric utility service will be made available on the effective date of the annexation on the same basis and at the same level as similar facilities are maintained throughout the city. OTHER SERVICES Other services that may be provided by the City, such as municipal and general administration will be made available on the effective date of the annexation. The City shall provide a level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City with topography, land use, and population density similar to those reasonably contemplated or projected in the area. II. CAPITAL IMPROVEMENTS PROGRAM (CIP) No new construction of additional water, sewer, street, and drainage facilities is contemplated within the annexed area as a result of this annexation because the annexed area on the date of annexation will have a level of full municipal services equal to other areas within the City having similar characteristics of topography, land use, and population density. Thus, no construction of public improvements is contemplated as a result of this annexation that would begin within two and a half (2/z) years after the effective date of the annexation. The City shall consider construction of other public improvements as the needs dictate on the same basis as such public improvements are considered throughout the City for areas having similar characteristics of topography, land use, and population density. UNIFORM LEVEL OF SERVICES MAY NOT BE REQUIRED Nothing in this plan shall require the City to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056 (Vernon Supp. 2000). AREP11 r Y1410 ~ David "W%f' er Date ATTACHMENT 5 Service Analysis ANNEXATION REQUEST SERVICE AREA ANALYSIS A06-0001 The Planning and Development Department has received a request for annexation of: 3,406.12 acres on the west of Interstate 35 West, south of Tom Cole Road. See attached map. Size. 3,406.12 acres Location. West of Interstate 35 West, south of Tom Cole Road. The property is bounded by Tom Cole Road to the north. FM 2449 bisects the property near the center of the development and John Payne Road is the eastern boundary south of FM 2499. Underwood Drive is on the eastern side of the property north of FM 2449. Proposed use. Mixed use development consisting of residential, commercial, recreational, and industrial uses. Proposed zoning. Default Rural Development-5 (RD-5) until zoning component is finalized. The purpose of the service area analysis is to determine how the city would provide services to the area should it be annexed into the city. A service area analysis form is attached. Please provide the requested information and any other pertinent information. To determine the city's ability to provide services to the proposed area it is necessary to document: • each department's existing capacity to provide an adequate level of service to the proposed area; • additional personnel and capital equipment/facilities necessary to provide an adequate level of service to the proposed area; and • cost of providing additional service. Existing Conditions: Proximity to existing arterial and collector roads. Several rights of way traverse the property and the property is bounded by Tom Cole Road to the north, John Payne Road on the east, Underwood Drive on the east, and C. Wolfe Road on the west. Existing land use: Currently the vast majority of the property is undeveloped. One occupied residence exists on the property. Prominent natural features: The Environmentally Sensitive Areas map of the Denton Plan shows this property lies within a stream buffers area and Riparian Habitat. This property is affected by the 100 year floodplain, in the northeastern portion of the site. Proximity to other service providers: This property is along the western border of the City of Denton, solely within the City of Denton' Thank you for your consideration of this request. Please submit any other information that you believe is pertinent to evaluate the provision of services to this area to Lori Shelton in the Planning and Development Department by March 17, 2006 and call 349-7274 if there are any questions. The annexation request/petition is scheduled for the April 18, 2006 City Council Agenda. Location Map of the Proposed Annexation T-1 , Denton Una UW" Rob= Rmid SERVICE ANALYSIS A06-0001 Fire 1. Fire and Emergency Medical Services can be provided to the area from station(s) # 3 , located at 135E and McCormick 2. Estimated response time. 10 minutes 3. Appropriate response time in the City. 5 minutes 4. Is a new fire station approved in the CIP that could serve this area? yes If yes, what is the CIP program year? 2007 5. Will a new fire station be requested in upcoming CIP proposals to serve this area? no_. If yes, when should this station be operational? NA 6. Total estimated funding for equipment, employees and/or facilities needed to serve this area strictly based on annexation and proposed development. 7. Please comment on the cumulative impact of annexation and development. At what population level would another fire station facility be required? 20,000 Is there an accepted facility/equipment to population ratio that can be used for planning purposes? 20,000 Is there an accepted fire fighter to population ratio that can be used for planning purposes? 1 for 1,000 Additional Comments: The area would be covered by existing fire equipment and personnel. The addition of Station Seven will help this area tremendously. Rick Jones March 20, 2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Parks and Recreation What neighborhood park and recreational facilities are currently serving this area or are capable of serving this area if annexed and/or developed (federal, state, or local)? None are within the proposed annexation. The closest Denton Parks properties to the proposed annexation area are Robson Ranch Park .75 miles to the west, and the Vintage-Roark Branch creek open space, 1 mile to the east across 1-35E. Current residents will be able to use existing City of Denton parks, facilities and programs. 1. What projects and/or equipment will be needed to adequately serve this area if annexed and/or development based on the parks and recreation master plan or similar standards? The 2000 Denton Park and Recreation Master Plan does extend to the general area of the proposed annexation. Existing is an open space park at Robson Ranch Development near Lively Road. Base on information provided by the Developer, 12,000 residential units may be constructed. This equals into approximately 84 acres of new parkland. As neighborhood subdivision development occurs, neighborhood parks and community parks with athletic facilities will be necessary. Neighborhood Parks: 2.5 acres per 1,000 population. (to be dedicated at time of development) 5 acres minimum size. Neighborhood Park Development cost per acre is approximately $60,000. Community Parks: 3.0 acres per 1,000 population. 30 acre minimum 2. How much additional funding will be needed for maintenance if additional park facilities are developed to serve this area? None required for Parks at this time. However additional mowing for street right of ways will be needed. Annual cost for street right of way mowing for 5 cycles is estimated at $4,302.00 for the 8.66 miles or 20.99 acres of new right of way mowing areas to come into the city. Service Standard: Based on $41.00 per acre per mowing cycle. 3. How many additional personnel would be needed to properly serve this area if annexed and developed? No additional personnel for Parks maintenance required at this time. However additional resources will be required for road right of way mowing along FM2449, Lively Road, Tom Cole Road, John Paine Road, Westcourt Road, Underwood Road, and Springside Road. Additional Comments: Denton Parks and Recreation Department will attempt to coordinate placement of park facilities proposed for development by the developer or use funds from the Park Land Dedication requirements to purchase or expand existing parks within the service area of this development. Bob Tickner, Superintendent of Park Planning and Development Person to contact if there are questions Date: 3-17-06 SERVICE ANALYSIS A06-0001 Police 1. Estimated average response time for this area based on current department conditions: Priority 18 minutes Non-priority 35 minutes Average 23 minutes 2. Appropriate average response time in the city based on current department conditions: Priority 11 minutes Non-priority 27 minutes Average 19 minutes 3. If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? Yes If yes, how many? What type? 4 Patrol officers would allow for continuous coverage of the area on each shift 4. Will additional equipment and funding be needed to serve this area? No if yes, what type? 5. Will a police substation or other facility be needed to serve this area as a result of annexation and development? No If yes, when should the new facilities be operational? 6. Please comment on the cumulative impact of annexation and development. At what population level would another police facility be required? It is not anticipated that this development would require another police facility. Is there an accepted facility/equipment to population ratio that can be used for planning purposes? No Is there an accepted officer to population ratio that can be used for planning purposes? Currently, 1.79 Officers per 1,000 residents Additional Comments: Lt. Lenn Carter 3/15/06 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Library 1. Estimated additional funding needed strictly based on proposed annexation and development. $0.00 2. Please comment on the cumulative impact of annexation and development. The proposed annexation will have no direct impact on library services provided by the three branches in the City of Denton. 3. At what population level would another library facility be required? 131,738 4. Is there an accepted circulation to population ratio that can be used for planning purposes? Yes, 8.04 per capita 5. Is there an accepted employee to population ratio that can be used for planning purposes? Yes. 1.0 / 2,500 6. If annexed, can anticipated service demands be met using existing materials, facilities, and personnel? Yes 7. If not, how many additional employees and what type of facilities and materials will be needed to provide services? Additional Comments: Eva Poole, Director of Libraries March 17, 2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Solid Waste 1. Is residential solid waste service available to the proposed area for annexation? Yes 2. Is commercial solid waste service available to the proposed area for annexation? Yes 3. What is the estimated cost to provide this area with solid waste service? Equipment and Maintenance. Initially, with one residence, $16.50 / month Personnel. A portion of one employee's time 4. What is the typical revenue collected per: Household. $16.50 per month Commercial Business $68 to $108 per month depending on container size 5. Will additional equipment be needed to serve this area if annexed or developed? Type of Equipment. No additional employees will be needed Cost of Equipment. Not Applicable 6. Will additional employees be needed to serve this area if annexed or developed? Type of Employees. No additional employees will be needed Number of Employees. Not Applicable Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? Too variable to establish Is there an accepted equipment to population ratio that can be used for planning purposes? No Is there an accepted employee to population ratio that can be used for planning purposes? No Additional Comments: Scott Lebsack x 8069 March 1, 2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Electric Utilities 1. What is the distance to, location of, and size of the nearest City of Denton electric line? Denton Municipal Electric has transmission service at the Denton West Interchange located on the south side of FM 2449. Denton Municipal Electric has distribution lines at Tom Cole Road and West Court. 2. What type of lines and facilities would be required to serve this area? Denton Municipal Electric would have to construct distribution facilities to the area. Depending on electrical lad a distribution substation would ultimately be constructed at the Denton West Interchange. 3. Are any new lines or facilities proposed for construction to serve this area? None at this time. 4. Are there any potential responsibilities if this area is annexed? With annexation, the City of Denton would provide street lighting and electric utility service according to the Denton Municipal Electric Service Standards. 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? Electric Load Dependent, not population Is there an accepted equipment to population ratio that can be used for planning purposes? Not Applicable Is there an accepted employee to population ratio that can be used for planning purposes? Not Applicable Additional Comments: The Public Utility Commission of Texas determines electric service classification. Donald L. McLaughlin March 8, 2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Water/Wastewater 1. What is the nearest City of Denton water line? Size of water line. 16 inch Location of water line. Vintage Blvd at 1-35 W Distance from proposed annexation. 10,100 ft 2. What is the nearest City of Denton sewer line? See attached Wastewater Exhibit Size of sewer line. Location of sewer line. Distance from proposed annexation. 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location Water lines 36-inch 2010 Bonnie Brae and Corbin Road Sewer lines 4. Are there any City of Denton lines included in the proposed annexation? 12 inch waterline in Westcourt at northeast corner of property line 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? 18,750 Is there an accepted equipment to population ratio that can be used for planning purposes? One Crew per 18,750 Is there an accepted employee to population ratio that can be used for planning purposes? One Employee per 5,770 population Additional Comments: The size and location of this property will require a water distribution system master plan to be prepared and submitted by the developer's engineer at the time the property is submitted for preliminary plat review to identify how water service can be extended from the city's existing water distribution system to serve the development. This plan must consider existing system capacity constraints and proposed capital improvements within the city's five-year CIP as well as proposed line extensions at the developer's expense as well as the proposed phasing of these improvements related to the proposed phasing of the development. The water distribution system master plan for the development must be prepared by a licensed engineer with water distribution system modeling experience and shall be in accordance with the city's water and wastewater design criteria manual. The attached "Wastewater Exhibit" shows the existing and proposed sewer lines that would serve the Cole Ranch. There is an existing 18-inch sewer line at Bonnie Brae that was oversized to accommodate flows beyond the needs of the Vintage development. An approximately 5,400 feet off-site extension from Cole Ranch by the developer will be required to bring flows to the existing 18-inch sewer line from the northern tract of the development. The southern part of the development will be served by a future sewer line in the Roark Branch watershed and an off-site extension by the developer, as shown in the exhibit. The sewer line sizes to serve the development will be based on yet to be determined wastewater flows from the development. The developer will generate the wastewater flow data from Cole Ranch. The off-site developer required sewer extensions and the future sewer lines shown in the "Wastewater Exhibit" are currently not in the 5-year capital improvement plan. A "Wastewater Service Agreement " must be negotiated with the developer based on the wastewater master plan for the Cole Ranch to determine funding requirements by the developer and the city for the construction of wastewater facilities to serve the development. Tim Fisher March 17, 2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Engineering and Transportation 1. What existing roads, bridges and other transportation facilities will be impacted by this proposed annexation and development in terms of needed improvements or upgrades? Name and location Type of Improvement Approximate Cost Underwood Road maintenance to City standards Unknown - see below C Wolf Road maintenance to City standards Unknown - see below Tom Cole Road maintenance to City standards Unknown - see below John Payne Road maintenance to City standards Unknown - see below The County bridges at John Payne Road at Roark Branch and at Tom Cole Road at Hickory Creek were recently reconstructed by Denton County under the Texas Dept. of Transportation Off-System Bridge Replacement Program. Bridge Replacement is needed at Underwood Road at Hickory Creek. This bridge qualifies for replacement under the present Texas Dept. of Transportation Off-System Bridge Replacement Program. Estimated administrative costs are $25,000, excluding right-of-way acquisition costs which are the responsibility of the City. The Replacement Bridges constructed under this program do not span the entire floodplain (see Additional Drainage Comments below). Automated roadway flood pates will be required at two bridge locations, at an approximate costs of $100,000 each for a total of $200,000. Gates are not required at the smaller John Payne Road box culverts because flows are lower. 2. Are any of these improvements presently scheduled to be done at state or federal expense? Yes If yes, please identify facility and anticipated date improvements will begin. Bridge Replacement needed at Underwood Road at Hickory Creek qualifies for replacement under the Texas Dept. of Transportation Off-System Bridge Replacement Program. Estimated administrative costs to the City are $25,000, excluding right-of- way acquisition costs which are the responsibility of the City. The bridge could be reconstructed within the next 2 years. 3. Please list any drainage improvements that may require local funding, and include estimated cost (if no specific improvements can be determined, please make general comments concerning drainage). The developer typically funds the drainage improvements required to prevent adverse impacts and downstream flooding, consistent with the requirements of the City's Development Code and Drainage Criteria Manual. Drainage culvert improvements will be required for two crossings at C. Wolfe Road to meet the standards of the City's Development Code and Drainage Criteria Manual. These culverts can be improved when development occurs that will increase the flows to the culverts. 4. Will additional equipment and facilities be needed as a specific result of this annexation and development? Yes . If yes, what type of equipment or facility? 1 - backhoe; 2 -12yd dump trucks; 1 - crew truck; 1- concrete saw & truck; 1 - crew of 5 men, including hand tools. The City's existing drainage maintenance equipment and facilities are adequate for maintaining the annexed area in its present land use. 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? Not Applicable to determine severity of increased wear on roadways until additional traffic is applied. Is there an accepted equipment to population ratio that can be used for planning purposes? No Is there an accepted employee to population ratio that can be used for planning purposes? No Additional Comments: STREETS The streets listed above are typical chip seal type roadways of this area and constructed for low volume, minimal truck related traffic volumes, constructed for accessing rural farms. Other public roadways or parts thereof may also apply. It is expected that future development will contribute to the improvements of these roadways prior to any expected traffic volume increases. However, if any part of the property contained within this annexation is allowed to develop prior to roadway improvements, substantial maintenance will be required to keep these roads in passable condition until the roadway is constructed to meet minimum City standards. The vehicles and personnel noted above are probable needs for this maintenance. Theses roads will also require speed studies and speed limit signing, as well as additional signing and markings as are appropriate. Bernard Vokoun (Streets) 03/10/2006 Person to contact if there are questions Date DRAINAGE There are two existing Lakes within the annexation area that were constructed by the Soil Conservation Service (now called National Resources Conservation Service). As the area develops, flows entering these lakes will be increased, the dam safety hazard classifications for these lakes may be re-classified to high hazard status. TCEQ requires the lake owners to conduct annual dam safety inspections for high hazard dams. The lake owners would also be responsible for spillway improvements, maintenance and repairs to the dam structures to comply with the TCEQ dam safety requirements. The City would assume these responsibilities if these lakes were acquired with a golf course or recreational area as City parkland. Costs cannot be predicted, but can be quite expensive (exceeding $1,000,000 each) for studies design and construction of larger spillway structures and seepage control systems for dams of this size. Clear zones downstream from these lakes across the Cole Ranch can be established to prevent these dams from being classified as high hazard dams. Residential and commercial development would not be allowed in the zones, because the areas would flood if a dam breach occurred. These dams cannot be removed because they currently provide the benefits of reducing downstream sedimentation and flooding in the Hickory Creek drainage basin through the City. The ownership and maintenance responsibility for these dams and clear zones must be addressed during the conceptual master-planning phase for the entire development. To construct new bridges spanning the approximately 1,500-feet wide floodplains at the Underwood Road and Tom Cole Road locations would cost more than $6,000,000 each. The hydraulic capacity of the new multiple box culvert structure at John Payne Bridge has not been evaluated by the City at this time. The smaller John Payne culvert can be improved by the developer as required by the City's Development Code. Additional culverts could be added to the existing structure. The City should consider planning a CIP Program and funding mechanism to construct new bridges spanning the floodplains at Underwood Road and Tom Cole Road in the future if this annexation is successful. Edward Witkowski (Drainage) 03/17/2006 Person to contact if there are questions Date SERVICE ANALYSIS A06-0001 Denton Independent School District Education services are currently provided by: Denton ISD and Ponder ISD 1. If annexed, can anticipated service demands be met using existing materials, facilities and personnel? 2. If not, how many additional employees and what type of facilities and materials will be needed to provide services? Estimate additional funding needed strictly based on proposed annexation and development. Will projected school taxes from this development provide that additional funding? 3. Please comment on the cumulative impact of annexation and development. 4. At what population level would other school facilities be required for the City of Denton? 5. Is there an acceptable employee to population ratio that can be used for planning purposes? Additional Comments: Gene Holloway Person to contact if there are questions Date WASTEWATER EXHIBIT I-FF f4uw ATTACHMENT 6 Notification Map 5 v (r Wp1,FE RUR a 200 FEET BUFFER r NUNN 0 ®n loll ir Public Newspaper loll Notification Date: April oil 2, 2006 IMF/ 200' Legal Notices* sent via Certified Mail: 27 500' Courtesy Notices mailed: 28 Number of responses to 200' Legal Notice: 5-, P ■ In Opposition: 0 ■ In Favor: 0 ■ Neutral: 0 500 FEET BUFFER L~IAe- LEGEND 0 Parcels A06 - 0001 RgWsed Mrroution Ara 0 200 feet radius bridy 0 500 feet _radius _6ndy rear = cvle_ranch_bndy 0 750 1.5M s,m° AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Planning and Development De art ment CM: Howard Martin, 349-8232 SUBJECT - CA06-0001 (Select Medical) Hold a public hearing and consider adopting an ordinance regarding the Comprehensive Plan Amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 5.74-acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35. The site is zoned a Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) zoning district. The property is currently undeveloped and the owner proposes to build a rehabilitation hospital. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Applicant: Spring Brook Planning Group Grapevine, TX The applicant is requesting a Comprehensive Plan amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 5.74-acre tract of land. The applicant is requesting the amendment to allow for the eventual development of a rehabilitation hospital on the subject site. Prior to the adoption of the Development Code on February 20, 2002, the property was zoned General Retail Service District, which designated hospitals as a permitted use. However, the property was designated `Neighborhood Centers' in the Future Land Use component of the Denton Plan. Upon adoption of the Development Code, the property was rezoned to Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) to comply with `Neighborhood Centers' future land use designation. The subject property is a portion of a larger tract of land that has been proposed for development. The developer of the larger tract has approached the city about their proposed development plans that may include hospital related uses, office uses and portions reserved for residential uses. However, neither specific plans nor applications have been submitted for staff review on the larger tract. The applicant is also requesting a zoning change from Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) to Regional Center Commercial Downtown (RCC-D). The zoning case (Z06-0007) is being processed concurrently with this Comprehensive Plan amendment. Public notification and property owner responses are provided in Attachment 3. As of this writing, staff has not received any responses from property owners within 200 feet of the subject site. 1 Staff recommended approval of the requested zoning change based on the following findings: 1. The proposed amendment is compatible with the surrounding land uses. 2. The proposed amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation is consistent with The Denton Plan land use goals and principles. 3. The proposed development adjacent to the subject property may include hospital related uses, office uses and portions reserved for residential uses. OPTIONS 1. Approve. 2. Approve with conditions. 3. Deny. 4. Postpone consideration. 5. Table. RECOMMENDATION Planning and Zoning Commission recommends approval to the Comprehensive Plan Amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 5.74-acre tract of land 6-0. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification Map 4. Site Photographs 5. Letter of Intent 6. Planning and Zoning Commission Meeting Minutes 7. Ordinance Prepared by: Supriya Chewle Planner II Respectfully submitted: Brian Lockley, AICP Acting Director of Planning and Development 2 ATTACHMENT 1 Staff Analysis Summary of Comprehensive Plan Amendment Request The applicant is requesting a Comprehensive Plan amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 5.74-acre tract of land. The applicant is requesting a Comprehensive Plan Amendment to allow for the eventual development of a rehabilitation hospital on the subject site. Existing Condition of Property The property is currently vacant and unplatted. Property History. December 7, 1999 - The subject property was placed into the `Existing Neighborhood/Infill Compatibility' land use designation. February 20, 2002 - The subject property was rezoned to the Neighborhood Residential Mixed Use Residential (NRMU) and Neighborhood Residential 6 (NR-6) zoning district. Adjacent land use designations and uses: North: Neighborhood Centers (mostly undeveloped, Single Family structure) South: Downtown University Core District, (Hospitals and closely related uses) East: Neighborhood Centers (undeveloped) West: Neighborhood Centers (undeveloped) Adjacent zoning: North: Neighborhood Residential 6 (NR-6) South: Downtown General Commercial (CM-G) East & West: Neighborhood Residential Mixed Use (NRMU) Comprehensive Plan Analysis The subject site is located in the "Neighborhood Centers" future land use area of the Denton Plan. According to the Denton Plan, "Within the undeveloped urban and urbanizing areas of the city, new neighborhoods may develop in traditional patterns. Mixed-use and mixed housing types will be allowed to develop in a pattern of "neighborhood centers These are oriented inwardly, focusing on the center of the neighborhood. These neighborhoods will exempla the interrelationship between quality of development, density, services and provision for adequate facilities. These developments should locate the center of the neighborhood within a five to ten minute walking distance from the edge of the neighborhood. The center contains uses necessary to support the surrounding neighborhood. These support uses could include service-oriented retail such as a small grocery, hair salon, dry 3 cleaner or small professional offices. Residential uses may occur at higher densities with town homes or residential flats above service oriented uses. Open space occurs in neighborhood centers with park uses including central neighborhood "greens" and floodplain preservation. Civic uses such as fire stations, schools, libraries, and mass transportation nodes are encouraged to be essential elements of neighborhood centers as landmarks that are a focus to the neighborhood. Limited multistory development in the neighborhood may be developed to incorporate shops on the ground floor and offices or residences on the upper floors. " The Neighborhood Centers land use designation is designed to include mainly residential uses along with some other uses such as Schools, Civic uses, Open space, Limited Retail and Offices. The applicant is requesting a Comprehensive Plan Amendment to allow for the eventual development of a rehabilitation hospital on the subject site. The subject site is currently zoned Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) zoning district, which does not permit the proposed hospital use. The other zoning district categories within the Neighborhood Center land use designation prohibit hospital uses as well. The surrounding property is currently vacant. The property to the south of the subject site includes the Presbyterian Hospital along with other medical related uses. The developer of the larger tract has approached the city about their proposed development plans that may include hospital related uses, office uses and portions reserved for residential uses. Staff is of the opinion that the subject site is a good location for medical uses with regards to the surrounding. In accordance with the Denton Development Code and Denton Plan, hospitals are allowed in the following land use designations and zoning districts: 1. Downtown University Core District: ■ Downtown Commercial Neighborhood ■ Downtown Commercial General 2. Regional Mixed Use Centers: • Regional Center Commercial Neighborhood ■ Regional Center Commercial Downtown 3. Employment Centers: ■ Employment Center Commercial According to the Denton Plan, the "Downtown University Core District" reads as follows: "Specified commercial areas of the downtown university core district should be places of great vitality, with a mix of educational, residential, retail, office, service, government, cultural, and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn, and play in the same neighborhood. It includes different uses which may occur on each floor of the building. " The Downtown University Core District was designed to protect environmentally sensitive areas and to promote the continued vitality of the downtown area; particular attention should be given to the retail core, including encouragement of hospitality uses. Although the properties to the 4 south of Scripture Road are within the Downtown University Core District this district was developed as a unique and dominant area within the center of the city. Therefore, staff is of the opinion that Downtown University Core District should be limited to the central older areas of the city. According to the Denton Plan, the "Employment Centers" reads as follows: "Employment centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. Employment centers are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child-care. Adequate public facilities shall be a criterion by which zoning is granted. " The Employment Center land use designation was designed to allow some light manufacturing uses. Though the properties across Interstate 35 are zoned for Industrial Uses, the subject site will not be appropriate for industrial uses. According to the Denton Plan, the "Regional Mixed Use Centers" reads as follows: "For a regional activity center, the focus area contains the shopping, services, recreation, employment, and institutional facilities supported by and serving an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high-density housing. A regional activity center is considerably larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. height & mass. " The Regional Mixed Use Centers land use designation was designed to allow uses such as shopping services and recreation that supports the entire region. The current medical land uses within the subject area qualify this area as a regional activity center, which is serving the community at a larger scale. Considering the development intentions of the property owner adjacent to the subject property, staff is of the opinion that Regional Mixed Use center land use designation is consistent with The Denton Plan land use goals and principles. The application shall address the impact of the proposed change on the following: a. The Goals and Objectives of The Denton Plan, The Denton Plan requires that distribution of various types of uses in well- located settings. The proposed project is well-located and compatible with the surrounding area. It also encourages the location of uses within or adjacent to activity centers in order to share public facilities and help establish these areas as focal points. The area around I-35 and Scripture has developed into a focal point with the location of several medical uses. Therefore, the proposed development of a rehabilitation hospital is in harmony with the existing uses in the area. 5 b. The Future Land Use element of The Denton Plan, The land use designation change does not have an adverse impact on the Future Land Use element of the Denton Plan. c. The balance of land uses in the City; The recent expansion of Presbyterian Hospital into a regional hospital along with the new medical offices being constructed has created a need for supplemental uses in the area such as the proposed rehabilitation hospital. The other location of such land uses is around Denton Regional Medical Center. d. Adequate Public Facility elements of the Denton Plan, and how the proposed change will affect the provision of the services anticipated in The Denton Plan. The application had adequate public facilities and does not create any adverse effect on them. The actions in Section 35.3.3.A shall be further evaluated under the following factors to balance the interest in promoting the public health, safety, morals, or general welfare against the right to the use of the property in issue: a. The existing land use pattern surrounding the property and the possible impact on existing or future development or uses that are in accordance with existing regulations; The existing uses surrounding the subject property are compatible with the proposed use on the subject property, which is in accordance with the existing regulations. The proposed development will not impede the orderly development of the surrounding properties. b. The possible creation of an isolated district unrelated to adjacent and nearby districts; The proposed development is compatible with the adjacent districts and therefore the amendment does not create an isolated district. c. The population density in order to facilitate the adequate provision of transportation, water, sewer, schools, parks, public convenience, and other public requirements; The development will not increase the density, as an Overlay District that restricts the intensity of the development is being imposed. d. The cost to the City and other governmental entities in providing, improving, increasing or maintaining public utilities, schools, streets and other public safety measures; It is anticipated that the existing public utilities and roads are adequate to serve the subject site. Any improvements will be at the developer's expense. The proposed use will have no impact on schools or other public safety measures. 6 e. The possible impact on the environment, including but not limited to, drainage, soil erosion and sedimentation, flooding, air quality and water quantity; The above calculations are not required with a Comprehensive Plan Amendment process. Therefore, staff is unable to indicate the impacts of this project at this time. However, the applicant will have to adhere to all subdivision regulations during the platting process. f. Whether there are substantial reasons why the property cannot be used in accordance with existing zoning or that proposed by the Future Land Use Map; and The property is currently zoned for Neighborhood Residential uses and does not permit hospital uses. Mostly medical uses are built along Scripture Road and the proposed use fits the character of the surrounding area. g. The action shall be made with reasonable consideration of the character of the district and its peculiar suitability for particular uses, and with a view of conserving the value of buildings and encouraging the most appropriate use of land throughout the City. Since Scripture Road has predominantly medical uses, staff believes that a Hospital use is an appropriate use of the subject property. 7 ATTACHMENT 2 Existing Land Use Map NORTH Proposed Land Use Map Scale: None 8 ATTACHMENT 2 Zoning Map NORTH Scale: None 9 ATTACHMENT 3 Public Notification NORTH F' N 5•' r sY. t 'r - F Lf ~ a : SCRIPTURE 5:. "r ...Y ~ e 5 Scale: one Public Notification Date: 3/08/06 200' Legal Notices* sent via Certified Mail: 5 Number of responses to 200' Legal Notice ■ In Opposition: 0 ■ In Favor: 0 ■ Neutral: 0 Percent of land within 200' in opposition: 0 % *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 10 ATTACHMENT 4 Photo raphs Subject site from Scripture Road Scripture and I-35 Intersection Clinics across the subject property. Presbyterian Hospital Medical uses along Scripture Road Hillview Ranch property 11 • _ ATTACHMENT 5 - LETTER OF INTENT ~ L Pp anninggroup January 23, 2005 Ms. Kelly Carpenter Director of Planning and Development City of Denton 11 221 N Elm Denton, TX 76201 Re: Comprehensive Plan Amendment for a proposed 44 bed Rehabilitation Hospital generally located north of Scripture Road between Bonnie Brae and Interstate 35 in the City of Denton, Texas. Dear Ms. Carpenter: Select Medical is proposing to develop a 44 bed, free standing Rehabilitation Hospital on a 500' by 500' site (5.7± acres) generally located on the north side of Scripture Road between Bonnie Brae and 1-35, approximately 300' east of 1-35 (Exhibit 1). Theproposed site is part of a .larger master planned -development that is currently being designed by Texas Land and Building Company for the property owners. Although not completed at this time, medical uses and offices are anticipated along the frontage of Scripture Road. The following items are included as part of the submission: ® Survey Map of the entire 265+ acre "Razor" property (Exhibit 2), ■ Survey Map of the proposed 5.7+ Select Medical site (Exhibit 3). ■ Property Description of parcel being amended (Exhibit 4). ■ Assessment of public facilities (Exhibit 5). ■ Preliminary Site Plan (Exhibit 6). Please note that the site plan, as proposed, will need an ADP for parking in front of the building and is being submitted only to show how the site will potentially look. Comprehensive Plan Amendment: The subject parcel is currently zoned Neighborhood Residential Mixed Use (NRMU) with a Land Use Classification of Neighborhood Centers. None of the "NR" zoning districts associated with the Neighborhoods Centers Land Use Classification allow for hospital development. In order to rezone the property to a zoning designation that does allow hospital uses the underlying Land Use Designation must first be amended. Based on our evaluation (see below) we are requesting to amend the Land Use Designation to Regional Mixed Use Centers. 2405 Mustang Drive / Grapevine, Texas 76051 / 469-955-8580 / 817-329-4453 (Fax) Select Medical - Scripture Road Comp Plan Amendment Page 2 of 4 t A number of criteria were evaluated to determine which Land Use Designation would be most appropriate for the site. The first criterion investigated were the zoning districts that do allow forthe development of r a hospital. The five zoning districts that allow for a hospital use (Exhibit 1) include; 1) Downtown Commercial Neighborhood (DC-N), 2) Downtown Commercial General (DC-G), 3) Regional Center Commercial Neighborhood (RCC-N), 4) Regional Center Commercial Downtown (RCC-D), and 5) Employment Centers Commercial (EC-C). Based on this analysis, there are 3 different land use categories that could be utilized for the site. They are; 1) Downtown University Core District (associated with the DC-N and DC-G zoning districts), 2) Regional Mixed Use Centers (associated with the RCC-N and RCC-D zoning districts), and 3) Employment Centers (associated with the EC-C zoning district). To determine which of the three is most appropriate, The Denton Plan was utilized for further guidance: Page 43 -Commercial Land-Use Classifications, states; Regional Mixed Use Activity Center Fora regional activity center, the focus area contains the shopping, services, recreation, employment, and institutional facilities supported by and serving" an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high-density housing. A regional activity center is considered larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. Downtown University Core District Specified commercial areas of the downtown university core district should be places of great vitality, with a mix of educational, residential, retail, office, service, government, cultural, and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn, and play in the same neighborhood. It includes different uses which may occur on each floor of the building. Select Medical - Scripture Road Comp Plan Amendment Page 3 of 4 Page 56 -Special Districts, partially states; Residents will continue to view the downtown university core as a unique and dominant area in the heart of the city that merits special attention. Page 50 -Industrial Land-Use Classifications, states; Employment Centers Employment centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. Employment centers are also intended to accommodate secondary uses that compliment or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child-care. Adequate public facilities shall be a criterion by which zoning is granted. Another criterion utilized was the surrounding land uses and the future land uses that might develop on the remainder of the property. The most dominate feature in the area is the Presbyterian Hospital of Denton (across the street from the subject property) along with medical facilities adjacent to the hospital. The area is developing into a regional medical destination. That alone, is one of the main reasons Select Medical wants to locate in this area. Additionally, Texas Land and Development Company (the agent for Razor Investment LTD) has indicated that the concept plans that are being developed, all include medical uses, primarily doctor's offices, along Scripture. The final consideration is how would the proposed amendment impact the remainder of the Razor property? Will the amendment and subsequent zoning of the subject parcel . correspond with the future development of the Razor property? Obviously, the ultimate development of the property will have a major impact on the city. It's highly visible from I- 35 and could be a major gateway into the city. Although there are no guarantees at this time, it is highly likely that the development of this quadrant of the site will be greatly influenced by the Presbyterian Hospital. It's much easier and logical to build upon a success (the hospital) than to develop a new market niche. Similar to the property on Oak Street across from the hospital that was recently rezoned to allow medical offices, it is expected that the property opposite the hospital on Scripture will be medical related and build upon the success of the hospital. This is a similar pattern of development that has been seen near Denton Regional Medical Center with doctor offices along Colorado Blvd and a surgery center across from the hospital. Therefore, the land use designation forthe subject parcel should also be appropriate for potential future development along Scripture. Analysis: Of the three land uses that could support the type of development considered (Downtown University Core District, Regional Mixed Use Centers and/or Employment Centers) { Regional Mixed Use Centers appears to be the most logical. It allows for the property to be rezoned allowing for the development of the rehabilitation hospital, expands upon the existing regional draw, and although not guaranteed, should be appropriate for the remainder of the Razor property along Scripture. Below is a brief analysis of each district considered; f i Select Medical - Scripture Road Comp Plan Amendment Page 4 of 4 i ■ Downtown University Core District: Although the Downtown University Core District may be appropriate as it does correspond to the current land use designation of Presbyterian Hospital and allows for the development of the rehabilitation hospital, its expansion into the Razor property, so far from the core of the district (`downtown"), is not appropriate based on the intent of the Denton Plan. Ultimate expansion of this district is more appropriate nearer to downtown. ■ Employment Centers: The main issue associated with this district is its industrial connotation and the ability for light manufacturing. It maybe appropriate for this one parcel, but would not be for the remainder of the frontage along Scripture. ■ Regional Mixed Use Centers: The proposed rehabilitation hospital is intended to have a regional draw and will serve residence beyond Denton. It will allow for the ! expansion of the existing regional influence of Presbyterian Hospital and is compatible with potential future development along Scripture. Additionally, it is the same designation as the area around Denton Regional Medical Center. In addition to the Comprehensive Plan Amendment, we are also requesting, 'under separate application, the subject parcel be rezoned from its current Neighborhood Residential Mixed Use (NRMU) zoning district to Regional Center Commercial Downtown (RCC-D). The proposed zoning district corresponds with the Regional Mixed Use Land, Use Classification, expands on the "downtown" classification of Presbyterian Hospital and allows the proposed hospital use. If you have any questions regarding this proposal, please call. Sincerely, Spring Brook Planning Group Lawrence C. Reichhart, ASLA, AICP i I EXHIBIT 1 Downtown Regional Mixed Employm University Core Use Centers ent Centers DC-N DC-G RCC-N RCC-D EC-C Agriculture P P P P P Livestock L(7) L(7) L(7) L(7) L(7) Single-Family Dwellings N N N N N Accessory Dwelling Units N N N N N - Attached Single Family Dwelling P P P P N J Dwellings above Business P P P P N m Live/Work Units P P P P N c Duplexes P N N N N _0v Comm. Homes For the Disabled P P P P N U) Group Homes N SUP SUP SUP N Multi-Family Dwellings L(5) L(5) LL64 & LL64 & N Manufactured Housing Dev's. N N N N N Home Occupation P P P P N Sale of Products Grown on Site N N N N N Hotels N P P P P Motels N N P N P Bed and Breakfast P P L(9) P N Retail Sales & Service L(17) P L(13) P P o Movie Theaters SUP SUP P P N Restaurant or Private Club L(11) P P P P U Drive-through Facility N SUP P P P Professional Service & Offices L(11 7 P L(11 4 P P Quick Vehicle Servicing N SUP P P P _0 Vehicle Repair N SUP N P P C J Auto & RV Sales N L(20) N P P Laundry Facility P P P P P Equestrian Facilities N N N N N E Outdoor Recreation N N N N P E E Indoor Recreation N P P P P U Major Event Entertainment N SUP SUP SUP P Commercial Parking Lot L(28) L(28) P P P Admin. and Research Facilities L(11 4 SUP L(11 4 P P Broadcasting of Production Studio P P P P P Sexually Oriented Business N N N N N Temporary Uses L(38) L(38) L(38) L(38) L(38) Light Gray Lettering - No Difference Page 1 of 2 Downtown Regional Mixed Employm ent University Core Use Centers Centers DC-N DC-G RCC-N RCC-D EC-C Printing / Publishing N P N N P Bakeries L(21) P L(21) P P Man. of Non-odoriferous Foods N N N N P Feed Lots N N N N N Food Processing N N N N N Light Manufacturing N N N L(23) P °Heavy manufacturing N N N N N Wholesale Sales N SUP N N P U L(36) SUP N N N Wholesale Nurseries N L(36) Distribution Center N N N N N J_ Wholesale Storage & Distribution N N N N N Self-service Storage N N N N P L Construction Material Sales N N N N N 0 Junk Yard & Auto Wrecking N N N N N Kennels N N N N P Veterinary Clinics L(26) P L 14 P P Landfills N N N N N Gas Wells SUP SUP L(27) L(27) L(27) L(27) L(27) Basic Utilities SUP SUP SUP SUP P Community Services P P P P P Parks and Open Space P P P P P o Churches P P P P P GO' Semi-public, Halls, Clubs & M Lodges P P P P P Business / Trade Schools L(26) P L 14 P P P P P P P _0 Kindergarten, Elementary School P N P N N J Middle School P N P P N High School N N P P N C Colleges SUP P P P P Hospital P P P P P Elderly Housing L 13 P P P P Medical Centers P P P P P Cemeteries N N N N N Mortuaries P P P P P Light Gray lettering - No Difference Page 2 of 2 EXHIBIT 2 a m I 5~ o.A I/_ - m Ygj2gq ~~a I o~ na~"~I ~ ~m o~ +e ° s 1 ~s ~ Z V aOi o Pe: ~r ~:°e °I' J` ipyc9Ee a m3 r ~5' J Z U j 0 A- x 2 a :5 13~ O CJ n e§ 3z€ 2 N o v e = d o 9 " $ss gam " \gg/ 4S r^ O cli c V c_ U c c v~ z~goao.~ ~ a / \1 Q U = p z C o C e a 5 g ° ~ II` • _ I ~ n y ~ m O y~ L ~ 0 2 e Rim t _~o hem ~m~ f/ om~~~N o~m >e 'c` °"D aia - c warvisv3atsi3uas~ _ / N m Q O d O CL q E$ e / ~etl N rv ~ry J~ - a = ~ i / ~c om IJVa~sev E W 1 21 1% m n 0 b a O H fl Col ll ] b J 7 f7 OO b e o' W a ° ~3 (,j, A,3 Syl~ O 335) ~ a F 1332115, 4 HlJ Yz 0 l IAT~- A1,99,lZ.lO S i b~ 31N 908 ll ,l0'9£bl o XSb.l1.10 s - I ~ .,~I e~ .csp e. .n 0091 At GZd£.l0 5 y q ffJ3 a - 101 N Q ~j II G II3 LL ~ ~N ~ M ^ Ie~ o a c l it Ij„V I s a ~ = III I~ a f~ a 11 10 Ifi I~ - to N I w ~ III ° e ~ o ° ° I f - a 3 0 Q I IIti f m~ N~ +I a ~s y ~ Ilf cJ n ~3 II ~ I E3 t.W'1 ~ ~ d°. "_p m o NG P fi ` ~ °m' c l~ N ego' 5 1300' ' T z z F o s w 1. ND• 3 8 _ w. W S ?,N ~ ~~2d-!' y ~ ~ ~ \{•1 • 4• p0. 0.Y ~ Mre n4'e» b~'^4 . E Ifi OCZ-.)~ C.D EXHIBIT 3 •uo6atins ay} yo 146uuano ~o abpaj-4 ay) inoylim apow s opjap jo - CO. s c!Wnilo -moluoa ,(ow puo Ja(wns ayi to aojio 04i. W paiodaid- lou .kdwo: y Z M (0: o A-41 sl 1-- passogwa W41 1noti px Adoa uogduosap jo dow AW •loas F o ~ - ~ CV. s uo.(anms P.-N.. ao moluoa mm uoaxay Ioaddo sawou asayM _q puo m a -&bl- a41 ,{g paJodwd suoilduxap puo sdow ~Gwns to sadoa lou!6po 11V w t- dl W d• ' a - . j C4 L n 00 V,) d v (n O co X X X UV E~ p'I r.E tie n x~ cY,E;. ht ~.l o U m 9! 2.2 216 u 3 °o LO U ` rt+ c m o G Li o O a Z.Z n di E c N cn CL lOi: iU Ear - _ oy w fn $ V3`°o Vz T E N -o.a °£o`..vu v 'l 00`006 'M SZ.t S V N - ~ a I-Q LU ~ooE Q. LL o v a 1 E m O 1 Q of Z~~ a Ec Q Q O Lr~ 00) E v $ O I`- 0 a *K? /v~l Panq~o CV >s7 OO E 1 AL e 97 o Op 4m Z' o 0 0 CP N to 0 3 °z to N LO i eaz~ 72 Q= vii c4 .r,s.. m. o R Z z o e to N E o v. ° ~ \ ti v ~ v .10 ,00'005 '3.9ZA N Q - n .10 N C~ ej.. ~V) s co n t~ a C~ : o. o : i C) C) M.:..Cd _ 3JVNMd'p 3LY4IX011dy .MU {C m M ° 40 °d a o 0 3 ARE UN Z tWG P ON?) y a / C ~BPp \G~L ~o,'WS ~d c tk z 3g56~j- ^ ~ C o ; . 00 0% owe6 5 • Y U 5 H1G~WA~ Z . r ~EO~'~`- - EXHIBIT 4 Situated in the City of Denton, Denton County, Texas, and being a tract of land in the B.B.B. & C. R.R. COMPANY SURVEY, Abstract No. 192, and embracing Tracts One, Two, and Three of Section Nine of that certain deed to Rayzor Investments, Inc., recorded in Volume 1796, Page 601, of the Denton County Deed Records, and also embracing all of Lot 3, Pearcy/Christon Addition No. 1, as shown on plat thereof recorded in Cabinet B, Slide 34, of the Denton County Plat Records, and all being more fully described as follows: BEGINNING at the most southerly southwest corner of said Tract One, said point being the southeast corner of a "corner clip" in the northeast quadrant of the intersection of the easterly line of Interstate Highway 35 with the north line of Scripture Street (60 foot wide right-of-way per adjacent lots), and from which point a fence corner post bears North 16 degrees, 05 minutes West, 3.3 feet, and a "Gerry Curtis RPLS 1640" capped 5/8" iron rod set for reference at the point of intersection of said easterly line and north lines extended bears South 88 degrees, 35 minutes East, 300 feet, To the PLACE OF BEGINNING. THENCE North 01 degree, 25 minutes East, 500 feet THENCE South 88 degrees, 35 minutes East, 500 feet THENCE South 1 degree, 25 minutes West, 500 feet THENCE North 88 degrees, 35 minutes West, 500 feet, to the PLACE OF BEGINNING, and containing 5.7392 acres. i EXHIBIT 5 Allison Engineering Group, LP P.O. Box 1975, Denton, Texas 76202 (940) 380-9453 Office (940) 380-9431 Fax January 19, 2006 Larry Reichart Spring Brook Planning Group 2405 Mustang Dr. Grapevine, Texas 76051 Re: Select Medical - Rehabilitation Hospital Analysis of Impact on Infrastructure Dear Mr. Reichart: Allison Engineering Group has prepared an analysis of the impact this facility will have upon the public infrastructure. The analysis was based upon the level of detail necessary to support the consideration of a zoning request. Additional analysis will be necessary for the actual design of new facilities. Select Medical is proposing a 44 bed rehabilitation hospital with an ability to expand to 60 beds. It is located on a site of approximately 5.75 acres. The following analysis uses the 60 beds and the 5.75 acres as the basis for estimating the impact on the infrastructure. Our findings are as follows: i Water Demand: The City of Denton is the provider of water service. Average Daily Flow: 60 beds x 100 gpbd = 6,000 gpd = 4.17 gpm 1 Maximum Daily Demand: 6,000 gpd x 2.2 = 13,200 gpd = 9.17 gpm Peak Hour Demand: 13,200 gpd x 1.7 = 22,440 gpd = 15.58 gpm Fire Flow (Medium Intensity Commercial): 3,000 gpm G Fire Flow + Average Day: 3,000 gpm + 4.17 gpm = 3,004.17 gpm It is not likely that the demand will be distributed evenly over a 24 hour day. The instantaneous demands will more likely be in the range of 50 to 100 gpm. City utility maps indicate that a 6 inch diameter water main exists on the suth side of Scripture Street. It is about 520 feet east of the south east corner of this site. The frontage is 500 feet. Therefore a water main extension of about 1,020 feet will be required. It is also expected that a 1,020 foot dead end 6 inch diameter water main will not provide sufficient capacity for the required fire flows. However, a fire sprinkler system may mitigate some of the demand for fire flows. Page 1 of 3 J &nnings eumanunW6 - De,6 gtdng; tfie Sgaterm I hat Sexue J fim EXHIBIT 5 Wastewater Demand. The City of Denton is the provider of sanitary sewer service. Average Daily Flow: 60 beds x 100 gpbd = 6,000 gpd = 4.17 gpm Peak 2-hour Flow: 6,000 gpd x 5 = 30,000 gpd = 20.83 gpm City utility maps indicate that a 6-inch diameter gravity sanitary sewer main exists on the north side of Scripture Street. It runs the full length of Scripture. It should have sufficient capacity to serve this facility. i Traffic Volumes. The following trip volumes were determined using the Institute of Traffic Engineers Trip Generation Manual, Land Use 620, Nursing Home. Average Day: 144 Average Vehicle Trip Ends Peak Hour Weekday: 13 Average Vehicle Trip Ends Peak Hour Weekend: 28 Average Vehicle Trip Ends it is not expected that this site will have any unusual impact upon the traffic in the area. Drainage: Preliminary analysis indicates that the flow for the 100 year storm event across the existing site is 25.40 cfs and that the flow across the site once it is developed is 54.11 cfs. Both of these analysis consider the off site areas as remaining in their current undeveloped condition. It is expected that they will retain any increase in flow. This site must retain flows equivilant to 28.71 cfs. The site drains in two different directions. One drainage area consists of 4.60 acres offsite and 4.77 acres on site. The other drainage area consists of 1.61 acres off site and 0.97 acres on site. The existing flows generally drain on to Scripture Street and into whatever storm sewer system may exist there. By detaining the increased flows on site, the development in this zone should have no impact on the existing storm sewer system. Solid Waste: The City of Denton is the provider of solid waste services. The proposed facility is consistent with the land use plan and surrounding land uses. It's generation of solid waste is not unusual. It should not generate as much waste as the neighboring hospital; particularly hazardous waste. It will generate waste along the lines of the clinics and doctors offices that are also in the area. Therefore we see that the facility will not have any impact upon the City's services other than planned growth. Page 2 of 3 Y&uutingG 6owu rtWen - De6* ng ffw Sy,6& o fiat Seaae Awn c t EXHIBIT 5 I Respectfully Submitted, Allison Engineering Group Lee K. Allison, P.E., FNSPE f l i Page 3 of 3 J &Wununitiea - DeaWuag tie &goeew .I Prat Sew.I fwn. EXHIBIT 6 v - L x O O O rv 9 ry m ui ~ cv m ~ O a~ A a~ 0 z A 0 o pq a N 9 W o ~ ~ Q a x a ~ s ~ o e d m o d o ~ N> .a O s 9 9 d z O W z N O^ m m d W O U d a 0 O m m "o Ow d O O i/ H/lH1 9 a~9 o O ~o mm~ Q W O U O z z z v o N 6 6, N 0 r ~ ~ ~ d U N ~ J Y Y ~ lh m K N Z 6 V~ N N 6~~ Q O ~ Q ~ ? Q Q d I I 1 m Z a rn a a LL a Q O u LL d F Qm ~ C)a yQa ANN ~ z X z z~ z z x o O ~d -K ~U mm ad © ~00 F F F U L F E E z D-7 Wz d~ Nd dO~A LLN~V .00'OOS M.OO,GUO 5 OS ebb d mr ~ m m do _ aP Q~ p o~ xN Z W 3 WOZ N UO~ OQN - - - qU ~ml~L ON LLI W~ m vN ~ a i v U Qo W x g 4 LLv S~ ❑ ® d ® ww ® ww yy a 8 8 ~ I ~ ~ a inai ,os'~bb L~ N 6 m oooos 3 „ooszoio N 0 i CQladenselt" ATTACHMENT 6 - P&Z MINUTES Page 41 Page 43 1 COMMISSIONER sTRANciE: The next item is 1 site is a good location for medical use with regards to 2 Item No. 4C, which is a Comprehensive Plan Amendment from 2 the surrounding. In accordance with the Denton 3 a Neighborhood Center to a Regional Mixed Use Center for 3 Development Code and Denton Plan, hospitals are allowed in 4 5.74 acres at the intersection of Scripture and Interstate 4 the following land use designations and zoning districts, 5 35. I would think what we would do is entertain the S Downtown Commercial Neighborhood, Downtown Commercial 6 presentation of Items C and D and we can vote on them 6 General, Regional Center Commercial Neighborhood, Regional 7 separately if that meets the favor of the rest of the 7 Center Commercial Downtown, Employment Center Conunercial. 8 Commission. 8 According to the Denton Plan, the Downtown 9 COMMISSIONER HOLT: I didn't hear you. 9 University Core District Land Use designation was designed 10 COMMISSIONER STRANGE: I said if you don't 10 to promote environmentally sensitive areas and to promote 11 mind we will take the presentations for C and D together . 11 the continued vitality of the downtown area. Particular 12 since it's one item but we will vote on them separately. 12 attention should be focused to the retail core including 13 Is that okay? All right. 13 engagement of hospitality uses- The properties to the 14 Ms. CnEWLE: Good evening, Commissioners. 14 south of the Scripture Road are within the Downtown 15 The applicant Springbrook. Planning Group from Grapevine, 15 University's Core District. Staff is of the opinion that 16 Texas is requesting a Comprehensive Plan Amendment on a 16 this land use designation should be limited to the heart 17 5.74 acre tract of land located on the northeast corner of 17 of the City and not grow to the center of the City. 18 Scripture Road and Interstate 35 intersection from 18 The Employment Center Land Use designation 19 Neighborhood Centers Land Use designation to Regional 19 was designed to allow some light manufacture uses. Though 20 Mixed Use Land Use Designation. 20 the properties across Interstate 35 are zoned for 21 A zoning change request is associated with 21 industrial uses, the subject site will not be an 22 this Comprehensive Plan which Mr. Chuck Russell will 22 appropriate site for industrial uses. The Regional Mixed 23 present to you later on in this Agenda. The subject 23 Use Center Land Use designation was designed to allow 24 property is currently undeveloped and a rehabilitation 24 users such as shopping services and recreation that 25 hospital is proposed. The subject property is a portion 25 supports the entire region. The current medical land uses Page 42 Page 44 1 of a larger.unpiatted tract of land with a homestead. 1 with the subject area qualified this area as a regional 2 Properties to the north, east and west of 2 activity center which is serving the community at a larger 3 the subject property are within Neighborhood Centers Land 3 scale. 4 Use designations and are mostly vacant. Properties to the 4 Considering the development intentions of 5 south are within the Downtown University Core Districts 5 the property owner adjacent to the subject property, staff 6 and have hospitals and closely related uses. Prior to the 6 is of the opinion that this land use designation is 7 eruption of the Development Code, the subject property was 7 consistent with the Denton Plan, Land Use goals, and 8. zoned General Retail Service District which permitted 8 principles. As of this writing, staff has not received 9 hospital uses. 9 any responses from the property owners within the 200 feet 10 According to the Denton Plan, Neighborhood 10 of the subject site. Staff recommends approval of the 11 Centers Land Use designation are designed to include 11 requested Comprehensive Plan Amendment. And I'll have Mr. 12 mainly residential uses along with some other uses such as 12 Russell present the zoning case. Thank you. 13 school, civic uses, open space, limited retail and 13 COMMISSIONER ROY: could staff do something 14 offices. The subject site is currently zoned Neighborhood 14 to kind of quieten things down? It's distracting and it's 15 Residential Mixed Use and Neighborhood Residential 6, 15 hard to concentrate on what we're doing. 16 which does not permit the proposed hospital use. The 16 COMMISSIONER STRANGE: Please close the 17 other zoning district categories within this land use 17 doors. If not, why don't we just ask them to move outside 18 designation prohibits hospital use as well. 18 and continue their conversation. 19 The developer of the larger tract of land 19 CommissioNER Roy: Thank you. 20 has approached the City about their proposed development 20 COMMISSIONER STRANGE: Let's give them just .21 plan that may include hospital-related uses, offices, and 21 one second and maybe they can get that quieted down for 22 portions reserved for residential uses. The.property to 22 us. Thank you. 23 the south of the subject site includes the Presbyterian 23 MR. RUSSELL: Mr. Chair, members of the 24 Hospital along with other medical-related uses. 24 Planning and Zoning Commission, the next item on your 25 Staff is of the opinion that the subject 25 Agenda is Item 4D, which is the zoning case, the companion PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 41 - Page 44. i CondenseIt' Page 45 Page 47 1 item to the case that Ms. Chewie just presented. The 1 starting out 44 beds, approximately you know, anywhere 2 applicant is requesting a change in zoning on the same 2 from 45 to 55,000 square feet possible expansion to 66 3 5.74 acre tract of land to an RCCD Regional Center 3 beds. It's a single story structure. We did look at all 4 Commercial Downtown Zoning District. The current zoning 4 of the other alternatives if you're going to be putting a 5 on the property is a combination of an NRmu Neighborhood 5 hospital rehabilitation hospital here, as was mentioned 6 Residential Mixed Use District and an NR-6 Neighborhood 6 by staff, it didn't make sense to expand the Downtown .7 Residential District. 7 District farther from downtown. It didn't make sense to 8 Up on the screen right now are some slides 8 go to the Employment Centers because of the 9 of the subject property. Again, the subject property on 9 industrial-type uses which led us to the Regional, and we 10 the north side of Scripture, is currently undeveloped and 10 do agree with the overlay. You know, we're looking, we I 1 is a part of a larger tract of land that is in the 11 think medical-related uses in this area even office uses 12 planning stages of a master plan type development. 12 adjacent to the hospital, we think this is how that area 13 The subject property on the lower left 13 is going to be or is going to develop. We are looking 14 corner, again, combination of existing zoning. The red is 1.4 to go to the Regional Mixed Use Center. And then zone it 15 the NRMu zoning district and just a tiny portion of the 15 RccD as identified with the overlay. 16 subject property is zoned NR-6, which is in the white 16 Very quickly, here's a rendering of of 17 yellowish color. Subject site, and again, the requested 17 potentially what the hospital will look like. Again, it's 18 RCC-D zoning District. Staff is in support of this 18 a single-story facility. We are looking and, again, 19 request based on, first, the Comprehensive Plan Amendment 19 don't take this for granted. The site plan might change. 20 being approved or recommended for approval by by you as 20 But we anticipate we'll need an Alternative Development 21 well as being adopted by the City Council. With that, 21 Plan because we are parking in front of the building for 22 though, even though we feel staff feels that the 22 reasons we'll get into later. But a lot of green space on 23 proposed use of the rehabilitation hospital is an 23 the site. We said parking in the front. But quite 24 appropriate use of this location, the RCCD District that's 24 honestly, it's we feel that it's a just a tremendous 25 being requested allows for that hospital use, but at the 25 use in this area adjacent to Presbyterian Hospital. Page 46 Page 48 1 same time it does bring in along a whole family of uses 1 Also, with me tonight is Mr. Richard Fisk, 2 that we don't think are necessarily compatible with that 2 who is the vice president of Business Development for 3 adjacent NR-6 zoning. 3 Select Medical and Mr. Randy Watts, who is the Director of 4 Keeping in mind that the proposal is to 4 Real Estate Development and Construction with Select 5 re-develop this whole piece of property, and for some 5 Medical. So if you have specific questions related to 6 reason that doesn't happen, we don't necessarily want to 6 their development or their what they do, these two 7 entertain certain uses that would eventually be adjacent 7 folks can definitely answer it. 8 to a Single Family Zoning District. 8 We agree with staff. We'd like to get both 9 So with that, we are recommending approval, 9 the Comp Plan Amendment approved tonight and the zoning. 10 but we're also recommending that an Overlay District be 10 I'll be happy to answer any questions you may have. 11 placed on the property that would limit uses on this site 1 I COMMISSIONER STRANGE: Does anyone have any 12 strictly to medical office and hospital, which again, we 12 questions of Mr. Reichbart? Mr. Watkins. 13 feel are compatible uses with what's being developed along 13 COMMISSIONER WATKINS: where did you get 14 Scripture. And we think that the zoning would also be 14 road 15 compatible with what's coming along down the road should 15 MR. REICHHART: Excuse me. 16 it happen for the remainder of the property. I'd be happy 16 COMMISSIONER WATKINS: where did you get 17 to answer any questions. 17 road Scripture Road? 18 coMMISS[oNER STRANGE: Any questions of 18 MR. REICHHART: I think I pulled it off one 19 staff? Thank you very much. We'll now open the public 19 of the maps. 20 hearing. Is the applicant here and do they wish to speak? 20 coMMlsstoNER WATKINS: oh, you did. 21 MR. REICHHART: Here and I always like to 21 MR, REICHHART: I believe so. Is it Street 22 speak. Thank you. Larry Reichhart, Springbrook Planning 22 or I will change it. 23 Group, 2405 Mustang Drive in Grapevine. And thank you. I 23 COMMISSIONER WATKINS; I've just never 24 won't elaborate much more than what staff has said. 24 heard it, you know, Decatur Road I've heard it called 25 We are proposing a rehabilitation hospital, 25 many things, Jim Christal, but I've never heard it called PLANNING AND ZONING. MINUTES APRIL 12, 2006 Page 45 - Page 48 CondenseIt" Page 49 Page 51 I Scripture Road. 1 MR. REICHHART: And I've seen the 2 MR. REICHHART: Well, I'll verify that. 2 conceptual Master Plans for this project. They're not 3 Thank you. 3 I can't get my hands on them. But, you know, they're 4 COMMISSIONER STRANGE: I've got --anyone 4 keeping them pretty close, but this site was this 5 else have any questions? I just have a couple questions. 5 specific site and that specific building were identified 6 One question is back over here on Exhibit 5 from Allison 6 on that Master Plan. We're working with buying the 7 Engineering Group, and this will lead to my second 7 property from the land developer and the property owner 8 question. I suppose it talks in here about the fact 8 who is working on that Master Plan. So we are 9 that he's done all of these analysis for just the 5.75 9 coordinating, at least, the land uses and the medical use 10 acre tract. 10 along Scripture as part of that Master Plan, 11 MR. REICHHART: just the 5.75 acre tract. 11 Drainage, what we're proposing to do is 12 COMMISSIONER STRANGE: And the one down 12 deal with our development, quite honestly. We're going to 13 there about the water demand where he's saying that 1,020 13 general do a general development on the entire parcel, 14 feet of dead-end six-inch line is not going to be 14 take a look at the general drainage patterns and there's 15 sufficient capacity for a fire flow, Are you addressing 15 basically four because it's coming off a hill, and one of 16 that? 16 them is heading in this direction, We're looking to do. a 17 MR. REICHHART: we'll either we will 17 retention on our property in the front of the property 18 address it. We'll probably end up looping the system 18 because that's the low part, which pushes the building 19 through our site. There's also not part of our 19 back. 20 development, but there are other developments that are 20 But those plans will be coordinated with 21 looking to come forward right adjacent to us, too. But we 21 future development, I mean, we'll come in and GDP the .22 will have to plat the property, identify where we're going 22 entire property for our to be able to pull out this one 23 to do the curb cuts and all of the utilities. But I would 23 5.75 acre parcel. An alternative and once that plan does 24 anticipate we'll have some type of loop interior our 24 come forward or if it never does, but once it does come 25 system at a minimum probably for fire and such. But that 25 forward, they'll have to amend that plan, incorporate what Page 50 Page 52 1 will be addressed as we go forward. 1 we've done into their development pattern. 2 COMMISSIONER STRANGE: And that kind of 2 Right now the road network is proposed to 3 leads to my second question. I had asked staff and legal 3 be one lot east of where our site is located right now. 4 both, based on my time here, I don't know that we've 4 So they have looked at connectivity throughout the whole 5 looked at just a small tract like this and an overall 5 development. Our site will provide cross-access as 6 . tract where we have not had a platting process for the 6 required by the Code to deal with those type of internal 7 entire tract. 7 cross-access issues, but as far as the entire Master Plan, 8 And I know that we are looking at this as a 8 this site has been specifically identified on the Master .9 part of a or that whole tract as a master plan. That's 9 Plan for this use. So it is being coordinated 10 all through our backup here information. But I was a 10 COMMISSIONER STRANGE: I don't think I'm as 11 little concerned about the spot-zoning aspect of taking 11 concerned as much about the use because we can all look 12 one little tiny spot of this thing and moving it out and 12 across the street and see what the uses in that area are. 13 moving forward with it at this time before we have 13 I'm more concerned about the other aspects.of moving ahead 14 information on the whole tract about the drainage 14 with not knowing what's happening with the drainage and 15 patterns, the traffic flow, the utilities, how you are 15 the roadways and the utilities and all of that, 16 going to loop utilities. 16 particularly when I read and hear from an engineer that 17 I'm just wondering about how much of that 17 he's got the same concerns. 18 we've taken into consideration in looking at this tract, 18 MR. REICHHART: well, and because we don't 19 the ramifications that could happen later, what are we 19 know what the uses are going to the ultimate uses of 20 doing about that? 20 this entire property are, I mean, quite honestly, we're 21 MR. REICHHART: What was that last part? 21 focusing on our use and making sure we have adequate fire 22 COMMISSIONER STRANGE: The ramifications of 22 and water protection for our use. And we believe the 23 what's going to happen with this Master Plan on the other 23 existing system, what we have to update, we'll have to 24 tract with this tract sitting there by itself already 24 update, but at the same time, working with the property 25 pulled out and zoned, 25 owner, if we have to extend water to the property, it just PLANNING AND.ZONING MINUTES APRIL 12, 2006 Page 49 - Page 52 CondenseItT' Page 53 Page 55 I makes sense to say, you know, if we have to extend eight I commissiONER STRANGE: okay. Is there 2 inch, your development might need 12 inch. Let's upsize 2 anyone else who does wish to speak? 3 it right now. 3 MR. WATTS: I didn't fill out a card but I 4 1 mean, we're in constant communication 4 would just like to make further comment. 5 with the overall property owner's you know, I can't .5 C-OMMIssIONER STRANGE: If you would please 6 guarantee that that's what we would that that's what 6 came forward and give me your name and address. 7 would happen, but that makes just common engineering sense 7 MR. WATTS: rely name is Randy Watts. Select 8 to try to incorporate that in, And, quite honestly, we 8 Medical, 4716 Mechanicsburg, Pennsylvania. I just wanted 9 haven't gone to that phase of Plat Utility Development 9 to respond to the comment regarding the legal entity 10 until we know we have the use that we can do. 10 that's pursuing this property. We have an option on that 11 commissioNER.sTRANGE: well, I had asked I I property. We have not purchased it. Until we know that 12 staff and legal earlier if this was an issue and I'm going .12 we have the proper zoning in place and our uses are 13 to ask them that in a minute in the public report, but 1 13 permitted uses within that zoning district. Once we know 14 just I have that concern. 14 that that is secured then we'll proceed ahead with the 15 MR. REICHHART: I understand. 15 purchase and sales agreement. 16 COMMISSIONER STRANGE: I just want to get 16 LEGAL: okay. I just wanted to make sure 17 your take on it before I ask them. 17 that, just for the clarification, our procedures require 18 MR. REiCHHART: well, and quite honestly, I 18 that a zoning must be initiated by the property owner or 19 mean, it was a permitted use on the property prior to the 19 the authorized agent of the property owner, and you're not 20 Development Code, but it's the only way to get this use 20 saying anything to the contrary of what Mr. Reichhart said 21 which makes sense in this area on that property is to do 21 about having authorization of the property owner to 22 the Comp Plan Amendment and rezoning, otherwise, you know, 22 proceed in this fashion? 23 amend the Development Code and allow it in NR-6 Or NRMU 23 MR. WATTS: Right. That is correct. Thank 24 zoning, which may not be appropriate, but I mean, it's the 24 you. 25 only way to get it done. 25 Comm issioNER sTRANGI;: Thank you very much. Page 54 Page 56 1 commissloNER STRANGE: okay. Staff. 1 We'll close the public hearing. And I would just before 2 Legal. 2 we ask for a vote, I just want to get a clarification, is 3 LEGAL: I just want to make sure 1 3 this is this a normal practice to look at such a small 4 understand. Did I understand you, Larry, to say that the 4 portion of an overall tract for a rezoning in a Comp Plan 5 applicant, the Select Medical Group is not the owner of 5 Amendment? I ask that either of staff and/or legal. 6 this property yet? 6 MR. RUSSELL: Mr. Chair, I've only been 7 MR. REICHHARM No, they are not. 7 here a short time, so I can't really speak for what might 8 LEGAL: okay. All right. 8 have been done in years past, but 1 feel confident that 9 MR. REiCHHART: we have authorization in 9 staff is able to support.both the Comp Plan Amendment and 10 the files that the property owner has authorized us to 10 the zoning request based on the really based on the I 1 act 11 fact that the land use is an appropriate use and that 12 LEGAL: To pursue this as their agent? 12 we're also confident that there will be a Comprehensive 13 MR. REICHHART: to pursue this as their 13 Plan Amendment and zoning change coming forward for the 14 agent. 14 remainder of the property. Again, it's not a guarantee, 15 LEGAL: okay. 15 but we have seen conceptual plans as well that do account 16 COMMISSIONER sTRANGE: Any other questions 16 for this tract. 17 of the applicant? Thank you very much. We have only one 17 1 think that staff did make the comment 18 card filled out for this itein and it was Mr. Reichhart and 18 early on to this applicant as well as the property owner 19 I suppose you've already spoken unless you want to speak 19 for the remainder of the tract that we did really 20 again. 20 encourage them to work hand in hand and try to try to 21 MR. REICHHART: I hope I'm done. 21 do this at the salve time, but the planning that's going on 22 coMMissioNER STRANGE: so we have no one 22 for the larger piece is just taking taking much, much 23 else here who wishes to speak on this item. 23 longer, and we have an applicant who is prepared to go 24 MR. REICHHART: The representatives from 24 forward and develop their portion of the property, and 25 Select are here to answer questions if you have them. 25 it's time sensitive and they've requested to push that PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 53 - Page 56 CondenseItT" Page 57 Page 59 1 ahead of the rest of the group. 1 commrssioNER STRANGE: okay. So we have an 2 But it's the same property owner, and they 2 amended motion and second or an amendment to the motion. 3 are again, did authorize this request and they are 3 Any other discussion? Please, vote. The vote passes 6-0. 4 communicating with each other. 4 . 5 commissIONER STRANGE: Okay, Thank you. 5 6 Do we have a motion? Staff, 6 7 MR. LOCKLEY: I'm sorry. I just wanted to 7 8 just add an additional comment to staff's earlier 8 9 comment. As the applicant stated, there is additional 9 10 processes that the applicant will undertake in terms of 10 I 1 platting, and at that time, you know, some of these issues 11 12 that are outlined in this rezoning request will be 12 13 addressed during that time. 13 14 So just for Council Commission's 14 15 benefit, you know, the items as they're presented 15 16 currently, you know, staff is continuing to look at those 16 17 and those will be addressed and resolved during that 17 18 planning process. 18 19 coMMrssioNE.R sTRANGE: Mr. Watkins. 19 20 CAMM[ssioNER wATKINS: Thank you, Mr. 20 21 Chairman. I would move approval of the Comprehensive Plan 21 22 Amendment, CA-06-0001. 22 23 COMMISSIONER GuzmAN-RAMON: second. 23 24 COMMISSIONER STRANGE: we have a motion by 24 25 Mr. Watkins and a second by Mrs. Guzinan-Ramon. Any 25 . Page 58 Page 60 1 discussion? Please, vote. Motion passes 6-0. 1 2 Do we have a motion on Item D, the 2 3 rezoning? 3 4 COMMISSIONER THIBODEAUX: Go ahead. 4 5 COMMISSIONER HOLT: I'll move approval of 5 6 Item D. 6 7 COMMISSIONER STRANGE: We have a motion by 7 8 Mrs. Holt. Do we have a second? 8 9 COMMISSIONER THIBODEAUX: Second. 9 10 COMMISSIONER STRANGE: Second by Dr. 10 1I Thibodeaux. Any discussion? 11 12 COMMISSIONER ROY: Yes. 12 13 COMMISSIONER STRANGE: Mr. Roy. 13 14 COMMISSIONER ROY: I just want to be sure, 14 15 I don't want to be troublesome here. But Item D, does 15 16 that automatically include the overlay district, the 16 17 recommendation in Item 2? I just want to make sure. 17 18 COMMISSIONER STRANGE: Mrs. Holt, would you 18 19 clarify that in your motion, please? 19 20 COMMISSIONER HOLT: Yes, it is the 20 21 recommending the overlay district to be placed on the 21 22 property to limit to a medical office and hospital. 22 23 COMMISSIONER STRANGE: Dr. Thibodeaux, your 23 24 second 24 25 COMMISSIONER THIBODEAUX: Yes, second. 25 PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 57 - Page 60 &\Our DocumentslOrdinances1061CA06-0001.dcc ATTACHMENT - 7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR AN AMENDMENT TO THE LAND USE ELEMENT OF THE DENTON PLAN FOR THE CITY OF DENTON, TEXAS FOR APPROXIMATELY 5.74 ACRES OF LAND LOCATED ON THE NORTH SIDE OF SCRIPTURE ROAD BEGINNING AT A POINT 300 FEET EAST OF THE INTERSECTION OF SCRIPTURE ROAD AND INTERSTATE 35, AND BEING A PORTION OF THE B.B.B & C.R.R. COMPANY SURVEY, ABSTRACT NO. 192, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (CA06-0001) WHEREAS, on December 7, 1999, the City of Denton adopted the Denton Plan, 1999- 2020, the Comprehensive Plan of the City of Denton, Texas; and WHEREAS, Spring Brook Planning Group has applied for an amendment to the Land Use Element of the Denton Plan for approximately 5.74 acres of land from "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation; and WHEREAS, on April 12, 2006, the Planning and Zoning Commission recommended approval of the Land Use Plan Amendment; and WHEREAS, the City Council finds that the Land Use Plan Amendment is in the best interests of the health, safety and general welfare of the citizens of the City of Denton, Texas; 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 Land Use Element of the Denton Plan is hereby amended for approximately 5.74 acres of land more particularly described in Exhibit "A", attached hereto and incorporated herein by reference and as depicted on Exhibit "B", attached hereto and incorporated herein by reference. SECTION 3. The City's official Denton Plan land use map is amended to show the change in the land use designation. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. This ordinance shall become effective immediately from and upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FO EDWIN M ShIY CITY ATTORNEY BY:' ~f-- PAGE 2 EXHIBIT A LEGAL DESCRIPTION Situated in the City of Denton, Denton County, Tom, and being a tract of had in the B.S.B. & C. R.R.. COMPANY SURVEY, Abstract No. 192, and embracing Tracts One, Two, and Three of Section Nine of that certain deed to Rayuu Investments, Inc., recorded in Votme 1796 Page 601, of the Denton County Deed Records, and also embracing all of Lot 3, Pearcy/Christoa Addition No. 1, as shown on plat thereof recorded in Cabinet B, Slide 34, of the Denton County Plat Records, and all being more fully descrn'W as follows: BEGINNING at the most southerly southwest corner of said Tract One, said point being the southeast corner of a "corner clip" in the northeast quadrant of the intersection of the easterly line of Interstate Highway 35 with the north line of Scripture Street (60 foot wide right-of-way per adj=nt lots), and from which point a fewe cones post bears North 16 degrees, 05 minutes West, 3.3- feet, and a "Gerry Curtis RPLS 164W" capped 518" iron rod set for reference at the point of intmection of said easterly line and north lines extended bears South 88 degrees, 35 minutes East, 300 feet, To the PLACE OF BEGINNING. THENCE North 01 degree, 25-minutes Fast, 500 feet THENCE South 88 degrees, 35 minutes East, 500 feet THENCE South 1 degree, 25 minutes West, 500 feet THENCE North 88 degrees, 35 minutes West, 500 feet, to the PLACE OF BEGINNING, and containing 5.7392 aces. PAGE 3 EXHIBIT B UNIVERSYTY ' E L 15 m r - rrW fa o. STS RIRTURE r . 0 US O ! . 7 'r K FI C ILID PAGE 4 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Planning and Development CM: Howard Martin, 349-8232 SUBJECT - Z06-0007 (Select Medical) Hold a public hearing and consider adopting and ordinance regarding a zoning change for a 5.74- acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35 with consideration being given to the use of an Overlay District to further restrict uses on the subject property. The applicant is requesting a change from Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential-6 (NR-6) zoning districts to a Regional Center Commercial-Downtown (RCC-D) zoning district. BACKGROUND Applicant: Spring Brook Planning Group Grapevine, TX The applicant is requesting the zoning change in conjunction with a Comprehensive Plan Amendment (CA06-0001) to allow for the development of a rehabilitation hospital. The request is a part of a larger master planned development (Denton Hillside Center) that is still in the planning stages. The proposed medical use is consistent with the current proposals for the surrounding property as well as the existing medical uses across Scripture Road. Staff is recommending that an Overlay District be placed on the property to limit uses to medical office and hospitals in order to protect and enhance the special character of the adjacent single family zoned land and its future development in accordance with Section 35.7.1 of the Denton Development Code. Public notification and property owner responses are provided in Attachment 3. As of this writing, staff has not received any responses from property owners within 200 feet of the subject site. Based on the findings below, staff recommended approval of the requested comprehensive plan amendment. 1. The rezoning request is in compliance with the proposed Denton Plan amendment that staff is supporting. 2. The uses and development standards contained within the proposed RCC-D zoning district are in character with the adjacent zoning to the south of the site across Scripture Road and will comply with the proposed amendment to the Denton Plan for this site. Staff recommends an Overlay District restricting new uses on the site to medical office and hospitals in order to maintain compatibility with the adjacent NRMU and NR-6 districts. 1 PRIOR ACTION/REVIEW This site was rezoned to Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential-6 (NR-6) zoning districts on February 20, 2002. Since then, no further action or review has been brought to the Denton Planning and Zoning Commission. OPTIONS 1. Approve. 2. Deny. 3. Postpone consideration. 4. Table. RECOMMENDATION Planning and Zoning Commission recommends approval of a change in zoning from Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential-6 (NR-6) zoning districts to a Regional Center Commercial-Downtown (RCC-D) zoning district with an Overlay District restricted permitted uses on the property to hospitals and medical offices. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification Map 4. Site Photographs 5. Letter of Intent 6. Planning and Zoning Commission Minutes 7. Ordinance Prepared by: &A& W, pdaa~ Chuck Russell Planner III Respectfully submitted: jAicr Brian Lockley, AICP Acting Planning and Development Director 2 ATTACHMENT 1 Staff Analysis Summary of Zoning Request The applicant is requesting the rezoning of approximately 5.74-acres, currently zoned NRMU and NR-6 zoning districts, to an RCC-D zoning district. The property is located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35 (see attached Map). Existing Condition of Property The request site is currently undeveloped. Adjacent zoning and land uses. North: Neighborhood Residential-6 (NR-6); Undeveloped with a single family residence to the northeast South: Downtown Commercial-General (DC-G); Developed medical offices and hospital East: Neighborhood Residential Mixed Use (NRMU); Undeveloped West: Neighborhood Residential Mixed Use (NRMU); Undeveloped Comprehensive Plan Analysis The subject site is currently located in the "Neighborhood Centers" future land use area of the Denton Plan. The companion case to this zoning request is a proposal to amend the Denton Plan to a "Regional Mixed Use Centers" classification, which reads as follows: "For a regional activity center, the focus area contains the shopping, services, recreation, employment, and institutional facilities supported by and serving an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high-density housing. A regional activity center is considerably larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. " The Regional Mixed Use Centers land use designation was designed to allow uses such as shopping services and recreation that supports the entire region. The current medical land uses within the subject area qualify this area as a regional activity center, which is serving the community at a larger scale. Considering the development intentions of the property owner around the subject property, staff is of the opinion that Regional Mixed Use center land use designation is consistent with The Denton Plan land use goals and principles. The requested RCC-D zoning district is consistent with the Regional Mixed Use Centers land use designation in the Denton Plan. 3 Development Review Anal-- simper the Development Review Committee Access and Capacity Scripture Road is a Collector street. Additional right-of-way will be dedicated during the platting process to ensure adequate street width. Eight-foot sidewalks will be required. A traffic generation study will be required at the time of preliminary plat. Public Infrastructure A drainage study and drainage layout will be required at the time of preliminary plat. Drainage may require offsite easements and a TxDOT permit. An onsite drainage easement will be required for offsite drainage. Water and sanitary sewer load calculations and layouts will be required at the time of preliminary plat. Development Code /Zoning Analysis The following tables highlight the differences in uses between the NR-6, NRMU and RCC-D districts. The RCC-D district permits more commercial and retail uses than the current zoning districts. Categories Residential Land Use • Single Family Dwellings P N N Accessory Dwelling Units SUP N N Attached Single Family Dwellings P L(40) P Dwellings Above Businesses N P P Live/Work Units L(16) P P Duplexes P N N Group Homes N SUP SUP Multi-Family Dwellings N SUP L(6L L(4) Manufactured Housing Developments SUP N N Commercial • Categories Use F Hotels N P P Bed and Breakfast N P P Retail Sales and Service N L(17) P Movie Theaters N N P Restaurant or Private Club N L(11) P Drive-through Facility N SUP P 4 Professional Services and Offices N L(17) P Quick Vehicle Servicing N SUP P Vehicle Repair N N P Auto and RV Sales N N P Laundry Facilities N P P Outdoor Recreation P SUP N Indoor Recreation N N P Major Event Entertainment N N SUP Commercial Parking Lots N N P Administrative or Research Facilities N L(14) P Broadcasting of Production Studio N L(14) P Industrial • Categories Use Bakeries N L(21) P Light Manufacturing N N L(23) Veterinary Clinics N P P Gas Wells L(27) L(27) L(27) • • Categories Use Basic Utilities L(25) L(25) SUP Community Service N P P Semi-public, Halls, Clubs, and Lodges SUP P P Business / Trade School N L(14) P Adult or Child Day Care SUP P P Kindergarten, Elementary School SUP P N Middle School N P P High School N SUP P Colleges N N P Hospital N N P Elderly Housing N P P Medical Centers N P P Mortuaries N N P 5 The chart below illustrates the differences between the NR-6, NRMU and RCC-D zoning district development standards. General Regulations NR-6 NRMU RCC-D Minimum lot area (square feet) 6,000 2,500 None Minimum lot width 50 feet 20 feet None Minimum lot depth 80 feet 50 feet None Minimum front yard setback 10 feet None None Minimum side yard 6 feet 6 feet None Minimum side yard adjacent to a street 10 feet None None Minimum rear yard 10 feet None None 10 feet 20 feet 30 feet plus 1 plus 1 plus 1 foot for foot for foot for Minimum yard abutting a single family each each each use or district foot of foot of foot of building building building height height height above above above 20 feet 20 feet 30 feet Minimum residential unit size 500 SF Maximum FAR 3.0 Maximum Density, dwelling units per 6 30 100 acre Maximum Lot Coverage 60% 80% 90% Minimum Landscaped Area 40% 20% 10% Maximum building height 40 feet 65 feet 100 feet The uses and development standards contained within the proposed RCC-D zoning district are in character with the adjacent zoning to the south of the site across Scripture and will comply with the proposed amendment to the Denton Plan for this site. Staff recommends an Overlay District restricting new uses on the site to medical office and hospitals in order to maintain compatibility with the adjacent NRMU and NR-6 district. The Denton Development Code allows the creation of Overlay Districts that may (in part) limit permitted uses on a site. The staff recommendation to restrict uses on the subject property is consistent with the purpose of Overlay District provisions in the Denton Development Code. 6 ATTACHMENT 2 Existing Zoning Map NORTH Proposed Zoning Map Scale: None 7 Land Use Map g ATTACHMENT 3 Public Notification NORTH F' N 5•' r sY, t 'r - F L} ~ a : SCRIPTURE 5:. "r ...Y ~ e 5 Scale: one Public Notification Date: 3/8/06 200' Legal Notices* sent via Certified Mail: 5 Number of responses to 200' Legal Notice ■ In Opposition: 0 ■ In Favor: 0 ■ Neutral: 0 Percent of land within 200' in opposition: 0 % *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 9 ATTACHMENT 4 Photo raphs Subject site from Scripture Road Scripture and I-35 Intersection Clinics across the subject property. Presbyterian Hospital Medical uses along Scripture Road Hillview Ranch property 10 F J IS ?f ATTACHMENT 5 -LETTER OF INTENT pri piannln9 group January 23, 2005 Ms. Kelly Carpenter Director of Planning and Development City of Denton 221 N Elm Denton, TX 76201 Re: Zoning Amendment for a proposed 44 bed Rehabilitation Hospital generally located north of Scripture Road between Bonnie Brae and Interstate 35 in the City of Denton, Texas. Dear Ms. Carpenter: Select Medical is proposing to develop a 44 bed, free standing Rehabilitation Hospital on a 500' by 500' site (5.7± acres) generally located on the north side of Scripture Road between Bonnie Brae and 1-35, approximately 300' east of 1-35. The proposed site is part of a larger master planned development that is currently being designed by Texas, Land and Building Company for the property owners. Although not completed at this time, medical uses and offices are anticipated along the frontage of Scripture Road. Zoning Amendment: The subject parcel is currently zoned Neighborhood Residential Mixed Use (NRMU) which does not allow a hospital use. In association with the requested comprehensive plan amendment, we are requesting that the subject parcel be rezoned to Regional Center Commercial Downtown (RCC-D). If the land use is amended to the Regional Mixed Use Centers classification than either Regional Center Commercial Neighborhood (RCC-N) or RCC will allow a hospital. As identified on Exhibit 1, there are few differences between the RCC-N & RCC-D zoning districts. RCC-D allows a few more uses than does RCC-N, however, RCC-D has no limitations on office development which would be beneficial for the adjacent property along Scripture if it is developed for medical offices. If desirable, we would be willing to place an overlay on the zoning limiting the use of the subject site to a hospital. i 2405 Mustang Drive / Grapevine, Texas 76051 / 469-955-8580 / 817-329-4453 (Fax) j i I Select Medical -Scripture Road Zoning Amendment j Page 2 of 2 The following items are included as part of the submission: ' ■ Zoning Comparison Table (Exhibit 1) ■ Survey Map of the entire 265+ acre "Razor" property (Exhibit 2). ■ Survey Map of the proposed 5.7+ Select Medical site (Exhibit 3). ■ Property Description of parcel being amended (Exhibit 4). ■ Assessment of public facilities (Exhibit 5). ■ Preliminary Site Plan (Exhibit 6). Please note that the site plan, as proposed, will need an ADP for parking in front of the building and is being submitted only to show how the site will potentially look. If you have any questions regarding this proposal, please call Sincerely, Spring Brook Planning Group Lawrence C. Reichhart, ASLA, AICP EXHIBIT 1 ECC-N & ECC-D COMPARISON TABLE RCC-N RCC-D RCC-N RCC-D Agriculture P P Printing / Publishing IN IN Livestock L(7) L(7) Bakeries L(21) P Single-Family Dwellings N N Man. of Non-odoriferous N N o Accessory Dwelling Units N N Foods Attached Single Family P P Feed Lots N N U Dwelling U) Food Processing N N °U Dwellings above Business P P .o Light Manufacturing N L(23) Live/Work Units P P Heavy manufacturing N N Duplexes N IN U Wholesale Sales N N Comm. Homes For the Wholesale Nurseries N N Disabled P P Distribution Center N N Group Homes SUP SUP Wholesale Storage & Multi-Family Dwellings L(6) & L(6) & J Distribution N N o! L(4) L(4) m Self-service Storage N N Manufactured Housing N IN Construction Material N N Dev's. Sales Home Occupation P P Junk Yard & Auto N N Sale of Products Grown on N N Wrecking Site Kennels N N Hotels P P Veterinary Clinics L(14) P Motels P N Landfills N N Bed and Breakfast L(9) P Gas Wells L(27) I L27 Retail Sales & Service L 13 P Basic Utilities SUP SUP U) Movie Theaters P P Community Services P P o Restaurant or Private Club P P Parks and Open Space P P Drive-through Facility P P .65 Churches P P U Professional Service & 0 Semi-public, Halls, Clubs L(14) P P Offices P & Lodges Quick Vehicle Servicing P P U Business / Trade Schools L(14) P Vehicle Repair N P U; P P J Auto & RV Sales N P Kindergarten, Elementary -Fu Laundry Facility P P School P N Equestrian Facilities N N J Middle School P P E Outdoor Recreation N N High School P P E Indoor Recreation P P Colleges P P U Major Event Entertainment SUP SUP Hospital P P Commercial Parkin Lot P P Elderly Housing P P Admin. and Research L(14) P Medical Centers P P Facilities Cemeteries N N Broadcasting of Production P P Mortuaries P P Studio Light Gray Lettering - No Difference Sexually Oriented Business N N Temporary Uses L(38) L(38) Page 1 of 2 Limitations: L(8) - Travelers' accommodations are permitted provided that: 1. The business-owner or manager shall be required to reside on the property occupied by the accommodations, or adjacent property. 2. That each accommodation unit shall have 1 off street parking space, and the owner, shall have 2 parking spaces. All spaces shall be in conformance with the requirements of the Off-Street parking section of the Chapter. 3. That only one ground or wall sign, constructed of a non-plastic material, non-interior illuminated of 4 sq. ft. maximum size shall be allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or nearby the travelers' accommodations. 4. That the number of accommodation units allowed shall be proportional to the permitted density of the zone. Each traveler's accommodation unit shall be counted as 0.6 units for the purposes of calculating the permitted number of traveler's accommodation. 5. All travelers' accommodations shall be within 200 feet of a collector or arterial. Street designations shall be as determined by the City Comprehensive Plan. Distances shall be measured via public streets or alley access to the site from the arterial. 6. Excluding the business owner's unit and the area of structure it will occupy, there must be at least 400 sq. ft. of gross interior floor space remaining per unit. 7. Traveler's accommodations are limited to no more than 8 guest units. L(9) - All restrictions of L(8), but limited to no more than 15 guest units. L(13) - Uses are limited to no more than 55,000 square feet of gross floor area per lot. L(14) - Uses are limited to no more than 10,000 square feet of gross floor area. L(21) - Bakery and bottling area not to exceed 2,500 square feet. Sales on premises of products produced required in this zone. L(23) - Light manufacturing of products sold on site permitted, area of manufacturing not to exceed 5,000 square feet. Page 2 of 2 EXHIBIT 2 a m I 5~ o.A I/_ - m Ygj2gq ~~a I o~ na~"~I ~ ~m o~ +e ° s 1 ~s ~ Z V aOi o Pe: ~r ~:°e °I' J` ipyc9Ee a m3 r ~5' J Z U j 0 A- x 2 a :5 13~ O CJ n e§ 3z€ 2 N o v e = d o 9 " $ss gam " \gg/ 4S r^ O cli c V c_ U c c v~ z~goao.~ ~ a / \1 Q U = p z C o C e a 5 g ° ~ II` • _ I ~ n y ~ m O y~ L ~ 0 2 e Rim t _~o hem ~m~ f/ om~~~N o~m >e 'c` °"D aia - c warvisv3atsi3uas~ _ / N m Q O d O CL q E$ e / ~etl N rv ~ry J~ - a = ~ i / ~c om IJVa~sev E W 1 21 1% m n 0 b a O H fl Col ll ] b J 7 f7 OO b e o' W a ° ~3 (,j, A,3 Syl~ O 335) ~ a F 1332115, 4 HlJ Yz 0 l IAT~- A1,99,lZ.lO S i b~ 31N 908 ll ,l0'9£bl o XSb.l1.10 s - I ~ .,~I e~ .csp e. .n 0091 At GZd£.l0 5 y q ffJ3 a - 101 N Q ~j II G II3 LL ~ ~N ~ M ^ Ie~ o a c l it Ij„V I s a ~ = III I~ a f~ a 11 10 Ifi I~ - to N I w ~ III ° e ~ o ° ° I f - a 3 0 Q I IIti f m~ N~ +I a ~s y ~ Ilf cJ n ~3 II ~ I E3 t.W'1 ~ ~ d°. "_p m o NG P fi ` ~ °m' c l~ N ego' 5 1300' ' T z z F o s w 1. ND• 3 8 _ w. W S ?,N ~ ~~2d-!' y ~ ~ ~ \{•1 • 4• p0. 0.Y ~ Mre n4'e» b~'^4 . E Ifi OCZ-.)~ C.D EXHIBIT 3 •uo6atins ay} yo 146uuano ~o abpaj-4 ay) inoylim apow s opjap jo - CO. s c!Wnilo -moluoa ,(ow puo Ja(wns ayi to aojio 04i. W paiodaid- lou .kdwo: y Z M (0: o A-41 sl 1-- passogwa W41 1noti px Adoa uogduosap jo dow AW •loas F o ~ - ~ CV. s uo.(anms P.-N.. ao moluoa mm uoaxay Ioaddo sawou asayM _q puo m a -&bl- a41 ,{g paJodwd suoilduxap puo sdow ~Gwns to sadoa lou!6po 11V w t- dl W d• ' a - . j C4 L n 00 V,) d v (n O co X X X UV E~ p'I r.E tie n x~ cY,E;. ht ~.l o U m 9! 2.2 216 u 3 °o LO U ` rt+ c m o G Li o O a Z.Z n di E c N cn CL lOi: iU Ear - _ oy w fn $ V3`°o Vz T E N -o.a °£o`..vu v 'l 00`006 'M SZ.t S V N - ~ a I-Q LU ~ooE Q. LL o v a 1 E m O 1 Q of Z~~ a Ec Q Q O Lr~ 00) E v $ O I`- 0 a *K? /v~l Panq~o CV >s7 OO E 1 AL e 97 o Op 4m Z' o 0 0 CP N to 0 3 °z to N LO i eaz~ 72 Q= vii c4 .r,s.. m. o R Z z o e to N E o v. ° ~ \ ti v ~ v .10 ,00'005 '3.9ZA N Q - n .10 N C~ ej.. ~V) s co n t~ a C~ : o. o : i C) C) M.:..Cd _ 3JVNMd'p 3LY4IX011dy .MU {C m M ° 40 °d a o 0 3 ARE UN Z tWG P ON?) y a / C ~BPp \G~L ~o,'WS ~d c tk z 3g56~j- ^ ~ C o ; . 00 0% owe6 5 • Y U 5 H1G~WA~ Z . r ~EO~'~`- - EXHIBIT 4 Situated in the City of Denton, Denton County, Texas, and being a tract of land in the B.B.B. & C. R.R. COMPANY SURVEY, Abstract No. 192, and embracing Tracts One, Two, and Three of Section Nine of that certain deed to Rayzor Investments, Inc., recorded in Volume 1796, Page 601, of the Denton County Deed Records, and also embracing all of Lot 3, Pearcy/Christon Addition No. 1, as shown on plat thereof recorded in Cabinet B, Slide 34, of the Denton County Plat Records, and all being more fully described as follows: BEGINNING at the most southerly southwest corner of said Tract One, said point being the southeast corner of a "corner clip" in the northeast quadrant of the intersection of the easterly line of Interstate Highway 35 with the north line of Scripture Street (60 foot wide right-of-way per adjacent lots), and from which point a fence corner post bears North 16 degrees, 05 minutes West, 3.3 feet, and a "Gerry Curtis RPLS 1640" capped 5/8" iron rod set for reference at the point of intersection of said easterly line and north lines extended bears South 88 degrees, 35 minutes East, 300 feet, To the PLACE OF BEGINNING. THENCE North 01 degree, 25 minutes East, 500 feet THENCE South 88 degrees, 35 minutes East, 500 feet THENCE South 1 degree, 25 minutes West, 500 feet THENCE North 88 degrees, 35 minutes West, 500 feet, to the PLACE OF BEGINNING, and containing 5.7392 acres. i EXHIBIT 5 Allison Engineering Group, LP P.O. Box 1975, Denton, Texas 76202 (940) 380-9453 Office (940) 380-9431 Fax January 19, 2006 Larry Reichart Spring Brook Planning Group 2405 Mustang Dr. Grapevine, Texas 76051 Re: Select Medical - Rehabilitation Hospital Analysis of Impact on Infrastructure Dear Mr. Reichart: Allison Engineering Group has prepared an analysis of the impact this facility will have upon the public infrastructure. The analysis was based upon the level of detail necessary to support the consideration of a zoning request. Additional analysis will be necessary for the actual design of new facilities. Select Medical is proposing a 44 bed rehabilitation hospital with an ability to expand to 60 beds. It is located on a site of approximately 5.75 acres. The following analysis uses the 60 beds and the 5.75 acres as the basis for estimating the impact on the infrastructure. Our findings are as follows: i Water Demand: The City of Denton is the provider of water service. Average Daily Flow: 60 beds x 100 gpbd = 6,000 gpd = 4.17 gpm 1 Maximum Daily Demand: 6,000 gpd x 2.2 = 13,200 gpd = 9.17 gpm Peak Hour Demand: 13,200 gpd x 1.7 = 22,440 gpd = 15.58 gpm Fire Flow (Medium Intensity Commercial): 3,000 gpm G Fire Flow + Average Day: 3,000 gpm + 4.17 gpm = 3,004.17 gpm It is not likely that the demand will be distributed evenly over a 24 hour day. The instantaneous demands will more likely be in the range of 50 to 100 gpm. City utility maps indicate that a 6 inch diameter water main exists on the suth side of Scripture Street. It is about 520 feet east of the south east corner of this site. The frontage is 500 feet. Therefore a water main extension of about 1,020 feet will be required. It is also expected that a 1,020 foot dead end 6 inch diameter water main will not provide sufficient capacity for the required fire flows. However, a fire sprinkler system may mitigate some of the demand for fire flows. Page 1 of 3 J &nnings eumanunW6 - De,6 gtdng; tfie Sgaterm I hat Sexue J fim EXHIBIT 5 Wastewater Demand. The City of Denton is the provider of sanitary sewer service. Average Daily Flow: 60 beds x 100 gpbd = 6,000 gpd = 4.17 gpm Peak 2-hour Flow: 6,000 gpd x 5 = 30,000 gpd = 20.83 gpm City utility maps indicate that a 6-inch diameter gravity sanitary sewer main exists on the north side of Scripture Street. It runs the full length of Scripture. It should have sufficient capacity to serve this facility. i Traffic Volumes. The following trip volumes were determined using the Institute of Traffic Engineers Trip Generation Manual, Land Use 620, Nursing Home. Average Day: 144 Average Vehicle Trip Ends Peak Hour Weekday: 13 Average Vehicle Trip Ends Peak Hour Weekend: 28 Average Vehicle Trip Ends it is not expected that this site will have any unusual impact upon the traffic in the area. Drainage: Preliminary analysis indicates that the flow for the 100 year storm event across the existing site is 25.40 cfs and that the flow across the site once it is developed is 54.11 cfs. Both of these analysis consider the off site areas as remaining in their current undeveloped condition. It is expected that they will retain any increase in flow. This site must retain flows equivilant to 28.71 cfs. The site drains in two different directions. One drainage area consists of 4.60 acres offsite and 4.77 acres on site. The other drainage area consists of 1.61 acres off site and 0.97 acres on site. The existing flows generally drain on to Scripture Street and into whatever storm sewer system may exist there. By detaining the increased flows on site, the development in this zone should have no impact on the existing storm sewer system. Solid Waste: The City of Denton is the provider of solid waste services. The proposed facility is consistent with the land use plan and surrounding land uses. It's generation of solid waste is not unusual. It should not generate as much waste as the neighboring hospital; particularly hazardous waste. It will generate waste along the lines of the clinics and doctors offices that are also in the area. Therefore we see that the facility will not have any impact upon the City's services other than planned growth. Page 2 of 3 Y&uutingG 6owu rtWen - De6* ng ffw Sy,6& o fiat Seaae Awn c t EXHIBIT 5 I Respectfully Submitted, Allison Engineering Group Lee K. Allison, P.E., FNSPE f l i Page 3 of 3 J &Wununitiea - DeaWuag tie &goeew .I Prat Sew.I fwn. EXHIBIT 6 v - L x O O O rv 9 ry m ui ~ cv m ~ O a~ A a~ 0 z A 0 o pq a N 9 W o ~ ~ Q a x a ~ s ~ o e d m o d o ~ N> .a O s 9 9 d z O W z N O^ m m d W O U d a 0 O m m "o Ow d O O i/ H/lH1 9 a~9 o O ~o mm~ Q W O U O z z z v o N 6 6, N 0 r ~ ~ ~ d U N ~ J Y Y ~ lh m K N Z 6 V~ N N 6~~ Q O ~ Q ~ ? Q Q d I I 1 m Z a rn a a LL a Q O u LL d F Qm ~ C)a yQa ANN ~ z X z z~ z z x o O ~d -K ~U mm ad © ~00 F F F U L F E E z D-7 Wz d~ Nd dO~A LLN~V .00'OOS M.OO,GUO 5 OS ebb d mr ~ m m do _ aP Q~ p o~ xN Z W 3 WOZ N UO~ OQN - - - qU ~ml~L ON LLI W~ m vN ~ a i v U Qo W x g 4 LLv S~ ❑ ® d ® ww ® ww yy 4 a 8 8 ~ I ~ ~ a inai ,os'~bb L~ N 6 m oooos 3 „ooszoio N 0 i CQladenselt" ATTACHMENT 6 - P&Z MINUTES Page 41 Page 43 1 COMMISSIONER sTRANciE: The next item is 1 site is a good location for medical use with regards to 2 Item No. 4C, which is a Comprehensive Plan Amendment from 2 the surrounding. In accordance with the Denton 3 a Neighborhood Center to a Regional Mixed Use Center for 3 Development Code and Denton Plan, hospitals are allowed in 4 5.74 acres at the intersection of Scripture and Interstate 4 the following land use designations and zoning districts, 5 35. I would think what we would do is entertain the S Downtown Commercial Neighborhood, Downtown Commercial 6 presentation of Items C and D and we can vote on them 6 General, Regional Center Commercial Neighborhood, Regional 7 separately if that meets the favor of the rest of the 7 Center Commercial Downtown, Employment Center Conunercial. 8 Commission. 8 According to the Denton Plan, the Downtown 9 COMMISSIONER HOLT: I didn't hear you. 9 University Core District Land Use designation was designed 10 COMMISSIONER STRANGE: I said if you don't 10 to promote environmentally sensitive areas and to promote 11 mind we will take the presentations for C and D together . 11 the continued vitality of the downtown area. Particular 12 since it's one item but we will vote on them separately. 12 attention should be focused to the retail core including 13 Is that okay? All right. 13 engagement of hospitality uses- The properties to the 14 Ms. CnEWLE: Good evening, Commissioners. 14 south of the Scripture Road are within the Downtown 15 The applicant Springbrook. Planning Group from Grapevine, 15 University's Core District. Staff is of the opinion that 16 Texas is requesting a Comprehensive Plan Amendment on a 16 this land use designation should be limited to the heart 17 5.74 acre tract of land located on the northeast corner of 17 of the City and not grow to the center of the City. 18 Scripture Road and Interstate 35 intersection from 18 The Employment Center Land Use designation 19 Neighborhood Centers Land Use designation to Regional 19 was designed to allow some light manufacture uses. Though 20 Mixed Use Land Use Designation. 20 the properties across Interstate 35 are zoned for 21 A zoning change request is associated with 21 industrial uses, the subject site will not be an 22 this Comprehensive Plan which Mr. Chuck Russell will 22 appropriate site for industrial uses. The Regional Mixed 23 present to you later on in this Agenda. The subject 23 Use Center Land Use designation was designed to allow 24 property is currently undeveloped and a rehabilitation 24 users such as shopping services and recreation that 25 hospital is proposed. The subject property is a portion 25 supports the entire region. The current medical land uses Page 42 Page 44 1 of a larger.unpiatted tract of land with a homestead. 1 with the subject area qualified this area as a regional 2 Properties to the north, east and west of 2 activity center which is serving the community at a larger 3 the subject property are within Neighborhood Centers Land 3 scale. 4 Use designations and are mostly vacant. Properties to the 4 Considering the development intentions of 5 south are within the Downtown University Core Districts 5 the property owner adjacent to the subject property, staff 6 and have hospitals and closely related uses. Prior to the 6 is of the opinion that this land use designation is 7 eruption of the Development Code, the subject property was 7 consistent with the Denton Plan, Land Use goals, and 8. zoned General Retail Service District which permitted 8 principles. As of this writing, staff has not received 9 hospital uses. 9 any responses from the property owners within the 200 feet 10 According to the Denton Plan, Neighborhood 10 of the subject site. Staff recommends approval of the 11 Centers Land Use designation are designed to include 11 requested Comprehensive Plan Amendment. And I'll have Mr. 12 mainly residential uses along with some other uses such as 12 Russell present the zoning case. Thank you. 13 school, civic uses, open space, limited retail and 13 COMMISSIONER ROY: could staff do something 14 offices. The subject site is currently zoned Neighborhood 14 to kind of quieten things down? It's distracting and it's 15 Residential Mixed Use and Neighborhood Residential 6, 15 hard to concentrate on what we're doing. 16 which does not permit the proposed hospital use. The 16 COMMISSIONER STRANGE: Please close the 17 other zoning district categories within this land use 17 doors. If not, why don't we just ask them to move outside 18 designation prohibits hospital use as well. 18 and continue their conversation. 19 The developer of the larger tract of land 19 CommissioNER Roy: Thank you. 20 has approached the City about their proposed development 20 COMMISSIONER STRANGE: Let's give them just .21 plan that may include hospital-related uses, offices, and 21 one second and maybe they can get that quieted down for 22 portions reserved for residential uses. The.property to 22 us. Thank you. 23 the south of the subject site includes the Presbyterian 23 MR. RUSSELL: Mr. Chair, members of the 24 Hospital along with other medical-related uses. 24 Planning and Zoning Commission, the next item on your 25 Staff is of the opinion that the subject 25 Agenda is Item 4D, which is the zoning case, the companion PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 41 - Page 44. i CondenseIt' Page 45 Page 47 1 item to the case that Ms. Chewie just presented. The 1 starting out 44 beds, approximately you know, anywhere 2 applicant is requesting a change in zoning on the same 2 from 45 to 55,000 square feet possible expansion to 66 3 5.74 acre tract of land to an RCCD Regional Center 3 beds. It's a single story structure. We did look at all 4 Commercial Downtown Zoning District. The current zoning 4 of the other alternatives if you're going to be putting a 5 on the property is a combination of an NRmu Neighborhood 5 hospital rehabilitation hospital here, as was mentioned 6 Residential Mixed Use District and an NR-6 Neighborhood 6 by staff, it didn't make sense to expand the Downtown .7 Residential District. 7 District farther from downtown. It didn't make sense to 8 Up on the screen right now are some slides 8 go to the Employment Centers because of the 9 of the subject property. Again, the subject property on 9 industrial-type uses which led us to the Regional, and we 10 the north side of Scripture, is currently undeveloped and 10 do agree with the overlay. You know, we're looking, we I 1 is a part of a larger tract of land that is in the 11 think medical-related uses in this area even office uses 12 planning stages of a master plan type development. 12 adjacent to the hospital, we think this is how that area 13 The subject property on the lower left 13 is going to be or is going to develop. We are looking 14 corner, again, combination of existing zoning. The red is 1.4 to go to the Regional Mixed Use Center. And then zone it 15 the NRMu zoning district and just a tiny portion of the 15 RccD as identified with the overlay. 16 subject property is zoned NR-6, which is in the white 16 Very quickly, here's a rendering of of 17 yellowish color. Subject site, and again, the requested 17 potentially what the hospital will look like. Again, it's 18 RCC-D zoning District. Staff is in support of this 18 a single-story facility. We are looking and, again, 19 request based on, first, the Comprehensive Plan Amendment 19 don't take this for granted. The site plan might change. 20 being approved or recommended for approval by by you as 20 But we anticipate we'll need an Alternative Development 21 well as being adopted by the City Council. With that, 21 Plan because we are parking in front of the building for 22 though, even though we feel staff feels that the 22 reasons we'll get into later. But a lot of green space on 23 proposed use of the rehabilitation hospital is an 23 the site. We said parking in the front. But quite 24 appropriate use of this location, the RCCD District that's 24 honestly, it's we feel that it's a just a tremendous 25 being requested allows for that hospital use, but at the 25 use in this area adjacent to Presbyterian Hospital. Page 46 Page 48 1 same time it does bring in along a whole family of uses 1 Also, with me tonight is Mr. Richard Fisk, 2 that we don't think are necessarily compatible with that 2 who is the vice president of Business Development for 3 adjacent NR-6 zoning. 3 Select Medical and Mr. Randy Watts, who is the Director of 4 Keeping in mind that the proposal is to 4 Real Estate Development and Construction with Select 5 re-develop this whole piece of property, and for some 5 Medical. So if you have specific questions related to 6 reason that doesn't happen, we don't necessarily want to 6 their development or their what they do, these two 7 entertain certain uses that would eventually be adjacent 7 folks can definitely answer it. 8 to a Single Family Zoning District. 8 We agree with staff. We'd like to get both 9 So with that, we are recommending approval, 9 the Comp Plan Amendment approved tonight and the zoning. 10 but we're also recommending that an Overlay District be 10 I'll be happy to answer any questions you may have. 11 placed on the property that would limit uses on this site 1 I COMMISSIONER STRANGE: Does anyone have any 12 strictly to medical office and hospital, which again, we 12 questions of Mr. Reichbart? Mr. Watkins. 13 feel are compatible uses with what's being developed along 13 COMMISSIONER WATKINS: where did you get 14 Scripture. And we think that the zoning would also be 14 road 15 compatible with what's coming along down the road should 15 MR. REICHHART: Excuse me. 16 it happen for the remainder of the property. I'd be happy 16 COMMISSIONER WATKINS: where did you get 17 to answer any questions. 17 road Scripture Road? 18 coMMISS[oNER STRANGE: Any questions of 18 MR. REICHHART: I think I pulled it off one 19 staff? Thank you very much. We'll now open the public 19 of the maps. 20 hearing. Is the applicant here and do they wish to speak? 20 coMMlsstoNER WATKINS: oh, you did. 21 MR. REICHHART: Here and I always like to 21 MR, REICHHART: I believe so. Is it Street 22 speak. Thank you. Larry Reichhart, Springbrook Planning 22 or I will change it. 23 Group, 2405 Mustang Drive in Grapevine. And thank you. I 23 COMMISSIONER WATKINS; I've just never 24 won't elaborate much more than what staff has said. 24 heard it, you know, Decatur Road I've heard it called 25 We are proposing a rehabilitation hospital, 25 many things, Jim Christal, but I've never heard it called PLANNING AND ZONING. MINUTES APRIL 12, 2006 Page 45 - Page 48 CondenseIt" Page 49 Page 51 I Scripture Road. 1 MR. REICHHART: And I've seen the 2 MR. REICHHART: Well, I'll verify that. 2 conceptual Master Plans for this project. They're not 3 Thank you. 3 I can't get my hands on them. But, you know, they're 4 COMMISSIONER STRANGE: I've got --anyone 4 keeping them pretty close, but this site was this 5 else have any questions? I just have a couple questions. 5 specific site and that specific building were identified 6 One question is back over here on Exhibit 5 from Allison 6 on that Master Plan. We're working with buying the 7 Engineering Group, and this will lead to my second 7 property from the land developer and the property owner 8 question. I suppose it talks in here about the fact 8 who is working on that Master Plan. So we are 9 that he's done all of these analysis for just the 5.75 9 coordinating, at least, the land uses and the medical use 10 acre tract. 10 along Scripture as part of that Master Plan, 11 MR. REICHHART: just the 5.75 acre tract. 11 Drainage, what we're proposing to do is 12 COMMISSIONER STRANGE: And the one down 12 deal with our development, quite honestly. We're going to 13 there about the water demand where he's saying that 1,020 13 general do a general development on the entire parcel, 14 feet of dead-end six-inch line is not going to be 14 take a look at the general drainage patterns and there's 15 sufficient capacity for a fire flow, Are you addressing 15 basically four because it's coming off a hill, and one of 16 that? 16 them is heading in this direction, We're looking to do. a 17 MR. REICHHART: we'll either we will 17 retention on our property in the front of the property 18 address it. We'll probably end up looping the system 18 because that's the low part, which pushes the building 19 through our site. There's also not part of our 19 back. 20 development, but there are other developments that are 20 But those plans will be coordinated with 21 looking to come forward right adjacent to us, too. But we 21 future development, I mean, we'll come in and GDP the .22 will have to plat the property, identify where we're going 22 entire property for our to be able to pull out this one 23 to do the curb cuts and all of the utilities. But I would 23 5.75 acre parcel. An alternative and once that plan does 24 anticipate we'll have some type of loop interior our 24 come forward or if it never does, but once it does come 25 system at a minimum probably for fire and such. But that 25 forward, they'll have to amend that plan, incorporate what Page 50 Page 52 1 will be addressed as we go forward. 1 we've done into their development pattern. 2 COMMISSIONER STRANGE: And that kind of 2 Right now the road network is proposed to 3 leads to my second question. I had asked staff and legal 3 be one lot east of where our site is located right now. 4 both, based on my time here, I don't know that we've 4 So they have looked at connectivity throughout the whole 5 looked at just a small tract like this and an overall 5 development. Our site will provide cross-access as 6 . tract where we have not had a platting process for the 6 required by the Code to deal with those type of internal 7 entire tract. 7 cross-access issues, but as far as the entire Master Plan, 8 And I know that we are looking at this as a 8 this site has been specifically identified on the Master .9 part of a or that whole tract as a master plan. That's 9 Plan for this use. So it is being coordinated 10 all through our backup here information. But I was a 10 COMMISSIONER STRANGE: I don't think I'm as 11 little concerned about the spot-zoning aspect of taking 11 concerned as much about the use because we can all look 12 one little tiny spot of this thing and moving it out and 12 across the street and see what the uses in that area are. 13 moving forward with it at this time before we have 13 I'm more concerned about the other aspects.of moving ahead 14 information on the whole tract about the drainage 14 with not knowing what's happening with the drainage and 15 patterns, the traffic flow, the utilities, how you are 15 the roadways and the utilities and all of that, 16 going to loop utilities. 16 particularly when I read and hear from an engineer that 17 I'm just wondering about how much of that 17 he's got the same concerns. 18 we've taken into consideration in looking at this tract, 18 MR. REICHHART: well, and because we don't 19 the ramifications that could happen later, what are we 19 know what the uses are going to the ultimate uses of 20 doing about that? 20 this entire property are, I mean, quite honestly, we're 21 MR. REICHHART: What was that last part? 21 focusing on our use and making sure we have adequate fire 22 COMMISSIONER STRANGE: The ramifications of 22 and water protection for our use. And we believe the 23 what's going to happen with this Master Plan on the other 23 existing system, what we have to update, we'll have to 24 tract with this tract sitting there by itself already 24 update, but at the same time, working with the property 25 pulled out and zoned, 25 owner, if we have to extend water to the property, it just PLANNING AND.ZONING MINUTES APRIL 12, 2006 Page 49 - Page 52 CondenseItT' Page 53 Page 55 I makes sense to say, you know, if we have to extend eight I commissiONER STRANGE: okay. Is there 2 inch, your development might need 12 inch. Let's upsize 2 anyone else who does wish to speak? 3 it right now. 3 MR. WATTS: I didn't fill out a card but I 4 1 mean, we're in constant communication 4 would just like to make further comment. 5 with the overall property owner's you know, I can't .5 C-OMMIssIONER STRANGE: If you would please 6 guarantee that that's what we would that that's what 6 came forward and give me your name and address. 7 would happen, but that makes just common engineering sense 7 MR. WATTS: rely name is Randy Watts. Select 8 to try to incorporate that in, And, quite honestly, we 8 Medical, 4716 Mechanicsburg, Pennsylvania. I just wanted 9 haven't gone to that phase of Plat Utility Development 9 to respond to the comment regarding the legal entity 10 until we know we have the use that we can do. 10 that's pursuing this property. We have an option on that 11 commissioNER.sTRANGE: well, I had asked I I property. We have not purchased it. Until we know that 12 staff and legal earlier if this was an issue and I'm going .12 we have the proper zoning in place and our uses are 13 to ask them that in a minute in the public report, but 1 13 permitted uses within that zoning district. Once we know 14 just I have that concern. 14 that that is secured then we'll proceed ahead with the 15 MR. REICHHART: I understand. 15 purchase and sales agreement. 16 COMMISSIONER STRANGE: I just want to get 16 LEGAL: okay. I just wanted to make sure 17 your take on it before I ask them. 17 that, just for the clarification, our procedures require 18 MR. REiCHHART: well, and quite honestly, I 18 that a zoning must be initiated by the property owner or 19 mean, it was a permitted use on the property prior to the 19 the authorized agent of the property owner, and you're not 20 Development Code, but it's the only way to get this use 20 saying anything to the contrary of what Mr. Reichhart said 21 which makes sense in this area on that property is to do 21 about having authorization of the property owner to 22 the Comp Plan Amendment and rezoning, otherwise, you know, 22 proceed in this fashion? 23 amend the Development Code and allow it in NR-6 Or NRMU 23 MR. WATTS: Right. That is correct. Thank 24 zoning, which may not be appropriate, but I mean, it's the 24 you. 25 only way to get it done. 25 Comm issioNER sTRANGI;: Thank you very much. Page 54 Page 56 1 commissloNER STRANGE: okay. Staff. 1 We'll close the public hearing. And I would just before 2 Legal. 2 we ask for a vote, I just want to get a clarification, is 3 LEGAL: I just want to make sure 1 3 this is this a normal practice to look at such a small 4 understand. Did I understand you, Larry, to say that the 4 portion of an overall tract for a rezoning in a Comp Plan 5 applicant, the Select Medical Group is not the owner of 5 Amendment? I ask that either of staff and/or legal. 6 this property yet? 6 MR. RUSSELL: Mr. Chair, I've only been 7 MR. REICHHARM No, they are not. 7 here a short time, so I can't really speak for what might 8 LEGAL: okay. All right. 8 have been done in years past, but 1 feel confident that 9 MR. REiCHHART: we have authorization in 9 staff is able to support.both the Comp Plan Amendment and 10 the files that the property owner has authorized us to 10 the zoning request based on the really based on the I 1 act 11 fact that the land use is an appropriate use and that 12 LEGAL: To pursue this as their agent? 12 we're also confident that there will be a Comprehensive 13 MR. REICHHART: to pursue this as their 13 Plan Amendment and zoning change coming forward for the 14 agent. 14 remainder of the property. Again, it's not a guarantee, 15 LEGAL: okay. 15 but we have seen conceptual plans as well that do account 16 COMMISSIONER sTRANGE: Any other questions 16 for this tract. 17 of the applicant? Thank you very much. We have only one 17 1 think that staff did make the comment 18 card filled out for this itein and it was Mr. Reichhart and 18 early on to this applicant as well as the property owner 19 I suppose you've already spoken unless you want to speak 19 for the remainder of the tract that we did really 20 again. 20 encourage them to work hand in hand and try to try to 21 MR. REICHHART: I hope I'm done. 21 do this at the salve time, but the planning that's going on 22 coMMissioNER STRANGE: so we have no one 22 for the larger piece is just taking taking much, much 23 else here who wishes to speak on this item. 23 longer, and we have an applicant who is prepared to go 24 MR. REICHHART: The representatives from 24 forward and develop their portion of the property, and 25 Select are here to answer questions if you have them. 25 it's time sensitive and they've requested to push that PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 53 - Page 56 CondenseItT" Page 57 Page 59 1 ahead of the rest of the group. 1 commrssioNER STRANGE: okay. So we have an 2 But it's the same property owner, and they 2 amended motion and second or an amendment to the motion. 3 are again, did authorize this request and they are 3 Any other discussion? Please, vote. The vote passes 6-0. 4 communicating with each other. 4 . 5 commissIONER STRANGE: Okay, Thank you. 5 6 Do we have a motion? Staff, 6 7 MR. LOCKLEY: I'm sorry. I just wanted to 7 8 just add an additional comment to staff's earlier 8 9 comment. As the applicant stated, there is additional 9 10 processes that the applicant will undertake in terms of 10 I 1 platting, and at that time, you know, some of these issues 11 12 that are outlined in this rezoning request will be 12 13 addressed during that time. 13 14 So just for Council Commission's 14 15 benefit, you know, the items as they're presented 15 16 currently, you know, staff is continuing to look at those 16 17 and those will be addressed and resolved during that 17 18 planning process. 18 19 coMMrssioNE.R sTRANGE: Mr. Watkins. 19 20 CAMM[ssioNER wATKINS: Thank you, Mr. 20 21 Chairman. I would move approval of the Comprehensive Plan 21 22 Amendment, CA-06-0001. 22 23 COMMISSIONER GuzmAN-RAMON: second. 23 24 COMMISSIONER STRANGE: we have a motion by 24 25 Mr. Watkins and a second by Mrs. Guzinan-Ramon. Any 25 . Page 58 Page 60 1 discussion? Please, vote. Motion passes 6-0. 1 2 Do we have a motion on Item D, the 2 3 rezoning? 3 4 COMMISSIONER THIBODEAUX: Go ahead. 4 5 COMMISSIONER HOLT: I'll move approval of 5 6 Item D. 6 7 COMMISSIONER STRANGE: We have a motion by 7 8 Mrs. Holt. Do we have a second? 8 9 COMMISSIONER THIBODEAUX: Second. 9 10 COMMISSIONER STRANGE: Second by Dr. 10 1I Thibodeaux. Any discussion? 11 12 COMMISSIONER ROY: Yes. 12 13 COMMISSIONER STRANGE: Mr. Roy. 13 14 COMMISSIONER ROY: I just want to be sure, 14 15 I don't want to be troublesome here. But Item D, does 15 16 that automatically include the overlay district, the 16 17 recommendation in Item 2? I just want to make sure. 17 18 COMMISSIONER STRANGE: Mrs. Holt, would you 18 19 clarify that in your motion, please? 19 20 COMMISSIONER HOLT: Yes, it is the 20 21 recommending the overlay district to be placed on the 21 22 property to limit to a medical office and hospital. 22 23 COMMISSIONER STRANGE: Dr. Thibodeaux, your 23 24 second 24 25 COMMISSIONER THIBODEAUX: Yes, second. 25 PLANNING AND ZONING MINUTES APRIL 12, 2006 Page 57 - Page 60 S AOur Documents\Ordinances1061z06-0007.doc ATTACHMENT - 7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 5.74 ACRES OF LAND FROM A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT AND A NEIGHBORHOOD RESIDENTIAL-6 (NR-6) ZONING DISTRICT TO A REGIONAL CENTER COMMERCIAL-DOWNTOWN (RCC-D) ZONING DISTRICT AND USE DESIGNATION WITH AN OVERLAY DISTRICT ON PROPERTY LOCATED ON THE NORTH SIDE OF SCRIPTURE ROAD BEGINNING AT A POINT 300 FEET EAST OF THE INTERSECTION OF SCRIPTURE ROAD AND INTERSTATE 35 AND LEGALLY DESCRIBED AS A PORTION OF TRACT 4, OF THE B.B.B & C.R.R. COMPANY SURVEY IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z06- 0007) WHEREAS, Spring Brook Planning Group initiated a change in zoning for approximately 5.74 acres of land particularly described in Exhibit "A" attached hereto and made a part hereof as Exhibit "A" (the "property") from a Neighborhood Residential Mixed Use (NRMU) zoning district and a Neighborhood Residential-6 (NR-6) zoning district to a Regional Center Commercial-Downtown (RCC-D) zoning district with an overlay further restricting allowed land uses to medical offices and hospitals; and WHEREAS, the City Council makes the following findings: a. The change in zoning, including the Overlay District, is consistent with the Comprehensive Plan; and b. The Overlay District will protect and enhance the Property and surrounding area which are distinct from lands and structures outside of the Overlay District and the immediate neighborhood; and c. The regulations imposed in the Overlay District serve important and substantial public interests by preserving the integrity of the neighborhood surrounding the Overlay District; and WHEREAS, on April 12, 2006, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval of the requested change in zoning; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The zoning district classification and use designation of the Property is hereby changed from a Neighborhood Residential Mixed Use (NRMU) zoning district and a SAOur Documents\OrdiT=ces1061Z06-0007.doc Neighborhood Residential-6 (NR-6) zoning district to a Regional Center Commercial-Downtown (RCC-D) with a zoning overlay further restricting allowed uses to medical offices and hospitals. SECTION 3. The City's official zoning map is amended to show the change in zoning district classification. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding S2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days 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 , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY S:\Our Documents\Ordinances1061Z06-0007.doc EXHIBIT "A" LEGAL DESCRIPTION Situated in t Ci of Ikon, DentOn Cody, Tee, and being a tract of land in the B3Z. & C. RJL COMPANY SURVEY, AbStrWA No. 192, and embracing Try CMe, Two, aid Three of Flo Dine ofdiat certain deed to Rayzor Inv ,1w., recorded in VoMme 1796, Pap of the Denton Cow Deed RRecords~ and ako embracing all. of Lot 3, PearcylChriston :Addition o.1, as shown on plat thereof recorded in Cabinet B. Slide 34, of t Denton qty Pla ids, and all being more fully dmfibed as fuWws: BEGII Uq . G at the most southerly southwest corner of said Tract One, said point being the southeast corner of a "corner clip" in the northeast quadrant of the inter ion of the easterly line of Interstate Highway 35 with the north line of Scripture Street (67 font wide right-of-way per adjacent lots); and from which point a fence coaxer post bears forth lb degrees, 05 minutes West, 31feet, as a "de ry Curtis RPLS 1640" capped 5f$" n rod set for reference at the point of intersectiou of said easterly line and north lines extended heats South gS degrees, 35 mutes East, 300 feet, To the PLACE OF BEGINNING, HEiNC: Nth 01 tic , 25 winutes East., 500 feet THENCE South 88 degree3, 35 minutes East, 500 feet THENCE South I degree, 5 minutes We#, 500 feet THUNCE North SS degrees, 35 motes West, 500 feet, to the PLACE OF BE OWNING, and containing 5.7392 acres AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Planning and Development CM: Howard Martin, 349-8232 SUBJECT DCA06-0003 (Subchapter 16 Amendments) Hold a public hearing and consider adopting an ordinance amending portions of Subchapter 16 (subdivisions) of the Denton Development Code; providing for a severability clause and an effective date. BACKGROUND The proposed amendments to Subchapter 16 exempt development in the extraterritorial jurisdiction ("ETJ") from the requirement of a preliminary plat, and streamline the process by consolidating the preliminary plat and final plat processes for development in the ETJ. State law does not require a preliminary plat. Plat applicants may still utilize the pre-application conference to receive input before making application for a final plat. City records indicate that there has been very limited platting activity in the ETJ. Since 2002, there have only been a total of six final plats ("FP") and seven preliminary plats ("PP") approved in the ETJ. Year 2002: One FP and one PP Year 2003: One FP and two PPs Year 2004: Two FPs and three PPs Year 2005: Two FPs and one PP Staff recommended approved of the proposed amendments to Subchapter 16. RECOMENDATION The Planning and Zoning Commission recommends approval of the proposed amendments to Subchapter 16 by a vote of 6-1. ATTACHMENTS 1. Planning and Zoning Minutes 2. Ordinance Respectfully submitted: AV%P%% Kelly Carpenter, AICP Planning and Development Director ATTACHMENT 1 CondenseltTm Page 5 Page 7 1 COMMISSIONER STRANGE: our next item is for 1 after "final plat approval" strictly for the sake of 2' our public hearings and on your way in tonight outside the 2 clarity. The proposed first sentence would then read, 3 door there are yellow cards. If there's anyone here who 3 "The applicant shall demonstrate that the sanitary sewer 4 wishes to speak on any of our public hearing items 4 system serving the development will be adequate at the 5 tonight, they will need to make sure they have filled out 5 time of preliminary plat approval" no comma "for 6 a card and present them down front. Then we will call the 6 development within the City limits, or at the tune of 7 names and allow people to come forward and speak. If you 7 final plat approval," no comma "for developments 8 do not fill out a card, you will not be able to speak. 8 within the City's extraterritorial jurisdiction." 9 Our first public hearing is Item No. 4A, 9 Again, this is not a major deviation from 10 which regards an ordinance amending Subchapter 16 of the 10 the existing Subehapter 16 Standards. It is within the 11 Denton Development Code. Mrs. Carpenter is not here 11 City's discretion, State law does not require preliminary 12 tonight. So staff would you 12 plats, and staff recommends approval of the change. 13 LEGAL: I can speak to that if you'd like. 13 COMMISSIONER STRANGE: Any questions of 14 commissroNER sTRANGE: Legal will snake the 14 staff? Mr. Roy. 15 - any comments that we have tonight. 15 COMMISSIONER ROY: on the first paragraph 16 LEGAL: Ladies and gentlemen of the 16 in the cover letter, it talks about a severability clause. 17 Commission, we do have an ordinance, a draft ordinance 17 What is that? What's a severability clause? 1.8 before you proposing to make some changes to Subchapter 16 18 LEGAL: Essentially a severability clause 19 of the Denton Development Code. And a relevant part, it's 19 is a clause that you can place in an ordinance or in a 20 essentially a streamlining of the requirements of the 20 contract that says that if any portion of this ordinance 21 development within the extraterritorial jurisdiction of 21 is held invalid that the other provisions would remain .22 the City by removing the preliminary plat requirement from 22 valid. 23 the ET7 from development within the ETr. 23 COMMISSIONER ROY: Thank you. 24 There are roughly four sections of 24 COMMISSIONER STRANGE: Any other questions 25 Subchapter 16 of Chapter 35 that are implicated by this 25 of staff? If not, we will open the public hearing and I Page 6 Page 8 1 change and essentially as set forth in the draft 1 have three cards and so I don't see anybody here to 2 ordinances before you. There were a couple of changes 2 speak in favor. Is there anyone here who wishes to speak 3 that were proposed as this was presented in closed session 3 in favor of this item? Okay. We have three people who 4 that we probably want to incorporate. 4 wish to speak in opposition. I'll call your name. And if 5 On page 2 of the draft ordinance at the top 5 you would, please come forward, give us your name and 6 carry over paragrapb, this would be 35.16.12A, the last 6 address. The first to speak will be Wes Morrison. And 7 sentence would be simplified to read final plats are 7 the next to speak will be Larry Reichhart. 8 within final plats within the extraterritorial 8 MR. MORRISON: Thank you. Good evening. 9 jurisdiction shall satisfy both the requirements of a 9 My name is Wes Morrison representing Mitchell Planning 10 preliminary plat and a final plat. 10 Group, 7065 Confederate Park Road, Suite 300, Port Worth, 11 Also, in 35.16.20 in Subsections G2-13 at 11 Texas. Zip code is 76137. I'm here, as I said, 12 the bottom of Page 2, we're recommending removing a couple 12 representing Mitchell Planning Group. But we represent 13 of commas to snake the sentence read a little bit easier. 13 numerous property owners that would be affected by this 14 The first sentence would then read, "The applicant shall 14 amendment tonight. This amendment that's being proposed 15 demonstrate that the water system serving the development 15 would affect property owners in the ETJ that are not only 16 will be adequate to serve the development at the time of 16 developing one-acre lots or one house on 100 acres, but it 17 preliminary plat approval for development within the City 17 would also develop large scale. And I ask you tonight to 18 limits, or at the time of final plat approval for 18 think about those people that are developing one bouse on 19 developments within the City's extraterritorial 19 100 acres. They're going to have to provide everything 20 jurisdiction." Essentially, we're talking out the comma 20 that a final plat requires, so I'd ask you to look at that 21 after the word "approval." Both after "preliminary 21 and that goes into drainage studies and everything. 22 plat approval" and after "final plat approval." 22 This is something that I would ask the 23 A similar change is recommended on Page 3 23 Commission to table and do a little bit more research on 24 for Subsection 3B where we delete a couple of commas after 24 the basis that I've worked in numerous cities around the 25 "plat approval" after "preliminary plat approval" and 25 State and I've never seen this type of requirement or this PLANNING AND ZONING MINUTES MARCH 8TH, 2006 Page 5 - Page 8 CondenseIt"' Page 9 Page 11 1 type of deviation from the subdivision regs. 1 the area that would be expanded as the ETJ expands. 2 Either you require a preliminary plat or 2 And I'm here in opposition to this for 3 you don't. It's not just for the ETJ. it's not just for 3 several reasons. The first being that before I was an 4 the City. If you're not if you're going to do without 4 attorney, I had a career as a City Planner. So I've had 5 a preliminary plat, then do without it for the entire 5 experience with various with a lot of different City 6 City. Don't just open it up just to ETJ. t feel it's a 6 ordinances and I've done land use work in other states, 7 real negative outlook on the City and it's going to 7 and I've never, ever seen a City that requires a final 8 control development. It's going to really end all 8 plat with no preliminary plat or no step that's prior to 9 developments outside of the ETJ and I don't think that's 9 that, never seen a City. I've probably read 100 10 what the town wants or the City wants to do. 10 Subdivision Ordinances over the last five years. Never I 1 Again, I ask you to table this item and 11 seen anything like this. It's extreme and unprecedented. 12 research more with your staff. Thank you. 12 It's also part of the 72-hour surprise 13 COMMISSIONER STRANGE: Thank you for your 13 which means the City posted the Agenda Friday, it didn't 14 comments. 14 let the development community know. It didn't let anybody 15 MR. REICHHART: rood evening. Larry 15 know. It posted the Agenda and then as of Monday 16 Reichhart, 1608 East Windsor here in Denton 76209. I was 16 afternoon, we were finally afforded a copy of the proposed 17 really coming here for another item on the Agenda and I 17 ordinance to understand what the Agenda meant when it said 18 saw the write-up and my concern is without a preliminary 18 amend the Subdivision Regulations. What does that mean? 19 plat and going right to a final plat, if someone is 19 Does that give anybody notice that gets on your website 20 developing 50 acres, 100 acres, could he 1,000 acres, to 20 and looks to find out what's going on at the P & Z 21 final plat the entire development is very costly. 21 hearing? No, it doesn't. So that's my first problem. 22 All the studies that need to be done, all 22 The second is that this Ordinance is 23 of the engineering work that needs to be done, the life of 23 contrary to state law. Despite what your City attorney 24 the plat is only good for two years. And if you look at 24 has advised you, he's actually correct, State law doesn't 25 the time frame to do that and to develop out an entire 25 require a preliminary plat. But State law does say that Page 10 Page 12 1 subdivision with only a six-month extension that you can I municipalities may adopt regulations for subdivisions. 2 get, it's going to be very difficult, as Wes said, to get 2 And they may impose those regulations in the ETJ. it 3 any development done in the ETJ. 3 doesn't say that they can cause the ETJ and the City to be 4 A lot of times folks go and do the a 4 developed under different subdivision rules. 5 general development plan first and then they preliminary 5 So this is contrary to State law and you 6 and final plat smaller sections of their subdivision as 6 are subjecting yourselves to legal attacks if you adopt 7 the market dictates. That option is no longer available 7 these regulations or if the City Council ultimately does. 8 for developments in the ETJ. That's my that might be 8 I understand you're just giving a recommendation tonight. 9 the object of this this ordinance is to require folks 9 Next, I wanted to say that, of course, you 10 basically to come into the City so we're then you can 10 know that Hughes and Luce represents wc, the developers 11 do a preliminary and final plat, but it's going to be very 1 I and owners of the Craver Ranch project. If this is 12 difficult to do any development in the ETJ because of the 12 designed to stop the Craver Ranch project, that's not 13 costs of engineering a full set of documents. 13 going to accomplish your goal. That project is under an 14 And that's why the GDP, preliminary plat 14 injunction by the Court. So you're unnecessarily 15 and then final plat is the typical way to do it for large 15 affecting all of the owners in the ETJ and making kind of 16 developments. And it's just a concern that I had just 16 a rash decision without getting input from the community. 17 looking over the ordinance very quickly. That's all I 17 And for what reason, I don't know, since we're under an 18 need to say. 18 injunction. 19 COMMISSIONER STRANGE: Thank you for your 19 Last but not least, I wanted to ask that 20 comments. 20 you table this. I'm with Wes Morrison on that point. I 21 Next to speak would be Melissa Lindelow. 21 think you should seek input from the development and 22 MS. LINDELOw: Good evening. I'm Melissa 22 building community, those that are affected. Thank you. 23 Lindelow. My address is 301 Commerce, Fort Worth 76102. 23 commissioNER sTRANcE: Thank you for your 24 I'm with the law firm of Hughes and Luce and we represent 24 comments. Do we have anyone else here who wishes to speak 25 numerous landowners with property in Denton's ETJ and in 25 on this item? We'll close the public hearing. Do we have PLANNING AND ZONING MINUTES MARCH 8TH, 2006 Page 9 - Page 12 Condezlseit' Page 13 Page 15 1 a motion on Item 4A? I within the purview of the City to make this change in this 2 COMMISSIONER HOLT: I've got a question. 2 Ordinance. There's no State law requirement for a 3 coMMiSSIONER STRANGE: Oh, Mrs. Holt. 3 preliminary plat. 4 COMMISSIONER HOLT: Yes.. I would I'd 4 COMMISSIONER STRANGE: Mr. Roy. 5 like to bring up some of these questions. Will it end the 5 COMMISSIONER ROY: Well, legal counsel, 6 development in the ETi and will large developments will 6 just a little bit of variation on that. The suggestion 7 this, you know, be so costly that we won't have any 7 was while we might be able to not require a preliminary 8 development out there? I would like to hear somebody 8 plat in the STi that I believe the statement was that 9 discuss those points. 9 it was against the State law to have different platting 10 COMMISSIONER STRANGE: staff. 10 requirements for within the City limits and in the ETi. I I LEGAL: okay. Brian, do you want to speak 11 Could you comment on that? 12 to the practical issues and I'll speak to the legal issues 12 LEGAL: I know of no support for that 13 or do you want me to take a shot at the practical issues 13 statement. 14 as well? 14 COMMISSIONER STRANGE: Any other questions? 15 COMMISSIONER HOLT: Also, why doesn't 15 Mrs. Holt. 16 anyone else have this? 16 COMMISSIONER HOLT: I'm a little concerned 17 MR. LOCIKLEY: I can actually take a shot at 17 about I do want to be a leader and in the forefront, 18 the practical. What I would just like to interject 18 but we are always trying to attract development to North 19 regarding this is that obviously the market is going to 19 Texas, and if this in any way is going to prevent that, I 20 drive development in that area. And depending upon what 20 don't really understand why we're doing it. 21 the needs are and what's being proposers, that is going to 21 LEGAL: If you're asking me to speak to 22 have an effect on how properties are going to develop, so 22 that, I think that the suggestion to this is not to stifle 23 1 think that was reviewed with this proposal and with the 23 development. The suggestion in making this change is to 24 sentiment being that, you know, as the market continues to 24 amend our processes with regard to with regard to 25 drive development, that if it becomes onerous, and I guess 25 development within the ETi. I think that the process that Page 14 Page 16 1 if we begin to get that feedback from the development l will be allowed for this will still allow for consultation .2 community that, you know, it's beginning to be a 2 with staff for larger developments within the ET7..I 3 restriction or hindrance to them, then maybe that's 3 don't think that there's going to be any significant 4 something that we can take a look at in the future. But, 4 impact for smaller development within the ETi, for larger 5 you know, as it's being presented right now, I think that 5 development within the En They're probably should be 6 has been evaluated by staff. 6 more consultation with staff prior to those going forward. 7 LEGAL: I concur with Brian's statements 7 I think that it will help to ensure that 8 there. I think it's certainly worth a try to take this 8 . Denton has quality development within its ETi and for 9 proposal and we in the legal department have reviewed this 9 those types if the City boundaries ever do expand to 10 at length, and I think it's consistent with the direction 10 envelop these areas that have been developed pursuant to 11 that we and the staff would recommend to the Commission I I these new regulations, that it will help to snake sure that 12 and to the City Council. I guess I'm somewhat flattered 12 better quality developments are included within it. 13 that we're in the vanguard on this. I think it's great 13 COMMISSIONER STRANGE: Mr. Roy. 14 that we're in the lead on this. So as to whether other 14 COMMISSIONER ROY: One of the points that 15 cities have done this before or not, I don't really know 15 was raised had to do with a small development, a person 16 but I'm not particularly concerned about the possibility 16 who just happens to be in the ETi and he wants to build a 17 that other cities may not have. 17 house on his property or something like that. Is there 18 I think that it's the law in this area 18 any logic to making this requirement size-related, you 19 continues to develop. It develops with each and every 19 know, ten acres, 100 acres, or something like that or can 20 year. And it's our recommendation that we go forward with 20 we differentiate between requiring preliminary plats on 21 this change and certainly if if the people speaking 21 small developments and not on big developments? Is that 22 against it are right, that it stifles development to an 22 possible? 23 unwarranted degree, we could certainly go back and take 23 LEGAL: Well, I think that to answer your 24 another look at it at some future time. It's it is 24 question, it certainly adds another layer of complexity to 25 clearly authorized by State law and it's within it's 25 contemplate that kind of a differentiation. Secondly, it PLANNING AND ZONING MINUTES MARCH 8TH, 2006 Page 13 - Page 16 CondenseIfrm Page 17 Page 19 1 sort of begs the question of the justification for that, I I 2 think to the extent that there's been a question raised 2 3 about, you know, why differentiate between the ETj and 3 4 inside the City. It sort of goes a step further to say 4 5 well, we're going to have two different standards within 5 6 the ET7. I think administratively it's going to be kind 6 7 of a difficult standard to maintain. I think that in 7 8 terms of just the sheer simplicity of it, I don't really 8 9 see that this is any kind of a major impediment to 9 10 development within, the ET7 or that it's an unwarranted 10 I 1 I haven't really heard a whole lot of support for the I 1 12 statements that this will be an impediment within the ET7 12 13 and it's a it's a fairly simple change that's proposed. 13 14 And I think that generally speaking, when 14 15 the City proposes legislation the old acronym of keep it 15 16 simple is one that applies very well with respect to 16 17 drafting ordinances and that we should keep as simple of 17 18 an approach as we can. 18 19 COMMISSIONER STRANGE: Thank you. Any 19 20 other questions? Mr. Roy. 20 21 COMMISSIONER ROY: I move approval of Item 21 22 4A with the amending language as described by counsel at 22 23 the beginning of the session. 23 24 COMMISSIONER STRANGE: we have a motion. 24 25 Do we have a second? 25 Page 18 Page 20 1 COMMISSIONER GUZMAN-RAMON: Second. 1 2 COMMISSIONER STRANGE: we have a motion by 2 3 Mr. Roy and a second by Mrs. Guzman-Ramon. Any 3 4 discussion? If not, please vote. And the item passes 4 5 6-1. 5 6 (Coixunissioner Holt voting in opposition.) 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 2$ 25 PLANNING AND ZONING MINUTES MARCH 8TH, 2006 Page 17 - Page 20 ATTACHMENT 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING PORTIONS OF SUBCHAPTER 16 (SUBDIVISIONS) OF THE DENTON DEVELOPMENT CODE; PROVIDING FOR A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2002-040 the City Council of the City of Denton, Texas adopted the Denton Development Code, being Chapter 35 of the Code of Ordinances of the City of Denton, Texas, as amended (the "Development Code"); and WHEREAS, after conducting a public hearing as required by law, the Planning and Zoning Commission has recommended certain changes to Subchapter 16 of the Development Code; and WHEREAS, after conducting a public hearing as required by law, the City Council finds that the subject changes to the Development Code are consistent with the Comprehensive Plan and are 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 and are true and correct. SECTION 2. Subchapter 16 of the Development Code is hereby amended in part as follows: 35.16.11. Preliminary Plats. A. Purpose and applicability. A preliminary plat shall be required for all proposed developments or subdivisions of land within the corporate boundaries of the City, except where otherwise provided in this Subchapter. A relimin lat is neither re wired nor permitted in the extraterritorial jurisdiction.. The required preliminary plat is intended to provide sufficient information to evaluate and review the general design of the development to ensure compliance with the Denton Plan, the Denton Development Code, and the Thoroughfare Plan, and the requirements of this Subchapter. Where a general development plan is required, the preliminary plat shall conform to the approved development plan. 35.16.12. Final Plats. A. Purpose and applicability. A final plat of the property to be subdivided or developed is required of all developments to which this Subchapter applies. The final plat is intended to serve as the official recorded map and plat of the property to be subdivided or SAOur Documents\Ordinances1061subcbapter 16 amendments.DOC developed, showing thereon the boundaries, lots, public streets and easements and public facilities and features which are necessary to serve the development, as required by this Subchapter: For a development to be constructed in phases, the final plat may include only a portion of the land included in the preliminary plat and general development plan. The final plat shall conform to the preliminary plat, when a preliminary p lats_permitted or required. Final plats within the extraterritorial jurisdiction shall satisfy both the requirements of a preliminary plat and a final plat. 35.16.12.2 Processing Procedure for Final Plat and Construction Plans. C. Standards for Approval. The Planning and Zoning Commission shall approve the final plat if the plat complies with the following requirements: 1. Conforms to the Denton Plan, its land uses, and its current and future streets, alleys, parks, playgrounds, and public utility facilities; 2. Conforms to the Denton Plan for the City's future land uses, extension of the City's roads, streets, and public highways with the municipality and in its extraterritorial jurisdiction, taking into account access to and extension of sewer and water mains and the instrumentalities of public utilities; 3. The final plat conforms w44 to the tl+e preliminary plat, when a prelimiM plat is permitted or required; 4. Complies with the provisions for dedication of land and construction of public improvements of in accordance with City Construction standards; and 5. Complies with all applicable ordinances, criteria manuals, and laws. 35.16.20 Construction G. Utility Extension Regulations 2. Adequate water system b. The applicant shall demonstrate that the water system serving the development will be adequate to serve the development at the time of preliminary plat approval for development within the City limits or at the time of final plat Wroval for developments within the Ci 's extraterritorial 'urisdiction. Where a development plan or phased preliminary plat is proposed, the applicant shall demonstrate that each phase of the development Page 2 S:IOur Documents\Ordinances1061Subchapter 16 amendments.DOC will be served by an adequate water system under this standard. The approach main shall be extended to serve the entire development subject to a development plan or phased preliminary plat prior to the time of final plat approval for the second phase of the development plan or phased preliminary plat, unless the extension is part of a funded capital improvement project that the City has initiated consistent with its adopted capital improvements plan for water facilities. 3. Adequate sewer system b. The applicant shall demonstrate that the sanitary sewer system serving the development will be adequate at the time of preliminary plat approval for development within the City limits, or at the time of final lat approval for developments within the City's extraterritorial jurisdiction. Where a development plan or phased preliminary plat is proposed, the applicant shall demonstrate that each phase of the development shall be served by an adequate sanitary sewer system under this standard. The approach main shall be extended to serve the entire development subject to a development plan or phased preliminary plat prior to the time of final plat approval for the second phase of the development plan or phased preliminary plat, unless the extension is part of a funded capital improvement project that the City has initiated consistent with its adopted capital improvements plan for. wastewater facilities. All other provisions of Subchapter 16 not inconsistent with this amendment shall remain in full force and effect. SECTION 3. The Council finds and declares that the provisions of Section 1-12 of the Code of the City of Denton, Texas and Subsections 35.1.10.4A and B do not apply to this ordinance. SECTION 4. If any section, subsection, paragraph, sentence, phrase or word in this ordinance, or application there of to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 5. This ordinance shall become effective immediately from and after its passage. PASSED AND APPROVED this the day of 2006 EULINE BROCK, MAYOR Page 3 SAOur DocumentslOrdinances1061Subchapter 16 amendments.DOC I ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 4 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Planning and Development Department CM: Howard Martin, 349-8532 SUBJECT - Z06-0006: (Teasley Park) Continue a public hearing and consider adopting an ordinance regarding the rezoning of approximately 58.26 acres from a Neighborhood Residential-2 (NR-2) zoning district to a Neighborhood Residential-4 (NR-4) zoning district with an Overlay District. The property is located at the southwest corner of Teasley Lane and Ryan Road. The Planning and Zoning Commission recommends denial (5-0). (Z06-0006, Teasley Park). (REQUIRES A SUPER MAJORITY TO APPROVE) BACKGROUND Applicant: Wallace Creel, HIG Acquisitions, Ltd. Dallas, TX On April 18, 2006 City Council heard this request for rezoning and passed a motion to continue the public hearing to allow staff to prepare an ordinance for the zoning request with an Overlay District. The purpose of this Overlay District is to protect and enhance the Upland Habitat areas as indicated on the site plan as shown in Attachment 4 and to require a north/south connection to Ryan Road. The applicant is requesting to rezone the 58-acre parcel to Neighborhood Residential -4. The applicant proposes to develop the site concurrently with the 22.71 - acre NR-4 parcel to the north with similar residential uses. The subject property contains approximately 30 acres of Upland Habitat as noted on the Environmentally Sensitive Area map of the Denton Development Code. Of this acreage the applicant proposes to develop 50 percent of the habitat and preserve the remaining 50% as required by the Denton Development Code. Public notification information is provided in Attachment 5. As of this writing, staff has received 6 written responses in opposition and 1 written response in support of the request. The responses in opposition represent less than 5 percent of the total property owners within 200 feet of the subject site. The Planning and Zoning Commission voted to recommend denial of this request at the February 22, 2006 Planning and Zoning Commission meeting (5-0). Following the Planning and Zoning Commission hearing, the applicant held a neighborhood meeting on Monday, March 20, 2006 to discuss the neighborhood concerns. The primary concern of the neighborhood expressed at the meeting is the location of the preserved Upland Habitat and the additional traffic on Teasley Lane. In response to these concerns, the applicant revised the lot layout and presented the new site design exhibit shown in Attachment 4. 1 PRIOR ACTION/REVIEW This site was rezoned to NR-2 with the adoption of the Denton Development Code in 2002. Since then, no further action or review has been brought to the Denton Planning and Zoning Commission or the Denton City Council. OPTIONS 1. Approve as submitted. 2. Deny. 3. Postpone consideration. 4. Table item. RECOMMENDATION Staff recommends approval of the zoning request with an Overlay District with the following findings: 1. The rezoning request is in compliance with the Denton Plan. 2. The proposed rezoning is consistent with density and general development patterns as the surrounding subdivisions ATTACHMENTS 1. Staff Analysis 2. Maps 3. Lot Layout Exhibit 4. Revised Lot Layout Exhibit 5. Public Notification Map 6. Site Photos 7. Letter of Intent 8. Planning and Zoning Commission Minutes February 22, 2006 9. Ordinance Prepared by: Lori Shelton Planner II Respectfully submitted: ,Acr Brian Lockley, AICP Acting Planning & Development Director 2 ATTACHMENT 1 Staff Analysis Summary of Zoning Request The applicant is requesting the rezoning of 58.258 acres, currently zoned NR-2, to a NR- 4 zoning district. The property is located on the west side of Teasley Lane approximately, south of Ryan Road. Existing Condition of Property The property is currently undeveloped. There are approximately 30 acres of Upland Habitat located on the subject property. The applicant will preserve 50% of the Upland Habitat as is required in the Subchapter 35.17.9 of the Denton Development Code. Adjacent zoning and land uses. North: Neighborhood Residential 4 (NR-4); Developed single family (Hickory Creek Heights) South: Neighborhood Residential 4 (NR-4); Developed single family (Lexington Park Phase 1) East: PD-176; Developed single family (Wheeler Ridge) West: Neighborhood Residential 4 (NR-6); Undeveloped Comprehensive Plan Analysis The subject site is located within the designated "Neighborhood Centers" future land use area of the Denton Development Plan. These areas may develop similar to adjacent residential development patterns or may be developed into a `neighborhood center'. Neighborhood centers are oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to-day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school. The Denton Plan states: "Within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed." The proposed rezoning is consistent with the description of how new residential areas should relate to the existing residential areas with the same density and general development patterns as the surrounding subdivisions. There is NR-4 zoning to the north and south of the subject site. See Attachment 2 Zoning Map. Therefore, staff finds the request to rezone the subject property is compatible with the Future Land Use Plan and with the surrounding zoning designations. The proposed zoning change is in compliance with the Denton Plan. 3 Development Review Anal,, simper the Development Review Committee Access and Capacity A Traffic Impact Analysis (TIA) will be required at the time of platting. Access will be from Teasley Lane and Ryan Road. Staff has prepared proposed changes to the Denton Mobility Plan which includes a north south connection from Creekdale to Ryan Road. This proposed alignment would provide additional connectivity from the Teasley Park subdivision to Ryan Road. Public Infrastructure Engineering staff review of zoning application reports public infrastructure is adequate for project. Development Code /Zoning Analysis The NR-2 zoning district allows a maximum density of 2 dwelling unites per acre. The NR-4 zoning district allows a maximum of 4 dwelling units per acre. The chart below illustrates the differences between the two zoning districts. Proposed Zoning General Regulations Existing Zoning N R-2 N R-4 Maximum Density, dwelling units per 2 4 acre Minimum front yard setback 10 feet 5 feet Minimum side yard setback 6 feet 6 feet Minimum rear yard setback 10 feet 10 feet Maximum Lot Coverage 30% 60% Minimum Landscaped Area 70% 40% The current zoning (NR-2) would allow up to 116 residential lots on the 58.258 acres based only on density allowed. The proposed zoning (NR-4) would allow up to 233 residential lots on the same area. The lot coverage requirement is significantly different between the NR-2 with 30% allowed in NR-2 and 60% lot coverage allowed in NR-4. The NR-2 zoning district requires a 10 foot front yard setback, while the NR-4 district requires only 6 feet. 4 ATTACHMENT 2 Maps NORTH LOCATION AND ZONING MAP FUTURE LAND USE MAP 5 Subject Site AERIAL PHOTO UPLAND HABITAT LOCATION 6 ATTACHMENT 3 Proposed Lot Layout Proposed site design as submitted to Planning & Zoning Commission on March 22, 2006. NOTE: the site design exhibit is not a part of the rezoning ordinance. 7 ATTACHMENT 4 Revised Lot Layout Revised site design exhibit showing connection to Ryan Road and Upland Habitat preserved adjacent to Lexington Park subdivision. NOTE: the site design exhibit is not a part of the rezoning ordinance. 8 ATTACHMENT 5 Notification Map Scale: None x - 200 FT BUFFER I ~I Subject S1te ICI II I{ II - I I ~ I~ i 500 FT BUFFER ~f Newspaper Notification Date: April 2, 2006 Percent of land within 200' in opposition: <5 % 200' Legal Notices* sent via Certified Mail: 103 500' Courtesy Notices* sent via 1St Class Mail: 115 In Favor: 1 Opposed: 6 Neutral: 1 9 ATTACHMENT 6 Site Photographs Photograph taken from Teasley Road looking northwest. 10 ATTACHMENT 7 Letter of Intent HDAW&MMr, iru - Jmumy 9, 2006 I,aei Shelrort - Cityofllenloa PIssmiag & DmbpnmWDept. 221 North Slue bent, Tan 76201 • ltsc Latter a£>~ - TemlayPa& (DP05-WB) Dear Lod: Holm Land DevokpnkeK Ltd. MD) wanld Rm ib request re mmdn8 of apprmximatdy 582M s am located in mxdwsst Dente. ?hs pa vd [Tax ID: 838115] is located co Ryan Reed acid Teasley Lana (FM 2181). This parcel acjdm another pm d that has 22.714 acres shady teamed NR-4. The two parcels will be eoreabdnad to orate the Teadey Ps& subdivision. The total dffdbp nmW is WW2 acres. Our prupabod cmxmptph n hatum --232 - 60•x117• (t)VM lot seine) shW6f ally dahched lots an $0.972 scree. Exbft &ft"O" ZIOsdft The cnteot Ming ib r ibis pm d is NR -2 [58.25$ acres). The requested zoning is NRA. Wift the ptnpead concept plan dte demity would be 3.44 bts per acre wig& the 5$.258 sane. 7tq~go~a Rdgaeq JIoligan Load Development . would h1m to ram this psrW to NR-4 to coincide with evntnuas11 prnpertiee im this am This -•38 acre peroed wffl have s Vmmm a * 200 skSlo. immlly real homes inDishid 4. The property to be tvaoned b ommaIly Theta am appmxkmtdy 34 acres of Uplatud HLs vK The NR -4 maim wM males this pMeot eoomonnadly hamilft was ma dug the rapm d amnrmt of Upland laebiteL no sipfficout amount of Pea spade will alm eahmee thebas lyofthe development fa tbaemjeyanarnoFits reddem. Pe[illc Pleallities 1. Wades. Please see dbdwd map for walm and servo fine locofiaL 2. ' Drdiam Psiltlea boded on Lmcinsion Pak will be pcwidsd in acme this treat. 3. Shook Teasley Park We ►wdbm the Dew lodapendeat Mod lid lMNW&DdmPZhW • Sdtr]Se • no~e,7tsrr MG • 974aM799981 IWO - 971,W-IM fm 11 LAND Q Pia - Flcaw call we vdth any 9ue;li= you may have. 972-387-7999 x l OD9 or email me ehania©hohggrLm n sincerely, k Elsie Harris plojed Manager Holigan Land Developm mt 2 IMM Noah Danu Pmkwq &i& -75D • Da➢ar Ucm 75M W7-W-7M Er 10M • W2-W-IM fa 12 ATTACHMENT 8 Planning & Zoning Minutes ~1, For 5 Pqp 7 l aaeiMMMMOWAIM w9'0 DWnova W 1 apbmd WHO mm bcBmImad vim dvralopitp 2 am•pabkbmdW AadIvSxmdoddmepw*b 2 mOdWa3am.7haappliamtiepw~pa~glamatdk 3 ma~tdla•~ee6 if you vrir5 b vpwk as a~►ii®ittt iv 3 atg9ktra" 4 tivmd la - m6dQ Hmu dal p, dr 4 7hlt eadtildk alowa dv► maehs dfm S C, Ott wrlr Leta - rated tD l5d mtt a ydlow ap$ 3 oadlfa6d6a thm wm amt as de mm psvpmq atwtptp. 5 mdiiamrmiachal~dtatyaow4ehi6aWalmaR 6 '!>rssrpghppasvEp~+pei4yrvme~~ioappovidoamda 7 %how7U vi4fwwOramim aadplpmlos60 7 iawppn~taadevc~rrigRaapardl~pvme~ute $ O"Immtd0feom. 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AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 58.258 ACRES FROM NEIGBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL 4 (NR-4) LOCATED AT THE SOUTHWEST CORNER OF TEASLEY ROAD AND RYAN ROAD AND LEGALLY DESCRIBED AS TRACT 5 IN THE ELI PICKETT SURVEY, ABSTRACT NUMBER 1018, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z06-0006) WHEREAS, Wallace Creel of HIG Acquisitions, Ltd. initiated a change in zoning for approximately 58.258 acres of land particularly described in Exhibit "A" attached hereto and made a part hereof as Exhibit "A" (the "property") from Neighborhood Residential 2 (NR-2) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning districts and use designations; and WHEREAS, on February 22, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended denial of the requested change in zoning; and WHEREAS, the City Council finds the change in zoning is consistent with the Comprehensive Plan; and; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The zoning district classifications and uses designations of the Property is hereby changed from Neighborhood Residential 2 (NR-2) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning district and use designation. SECTION 3. The City's official zoning map is amended to show the change in zoning district classification. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be 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 , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Exhibit A PROPERTY DESCRIPTION ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE ELI PICKETT SURVEY, ABSTRACT NUMBER 1018, DENTON COUNTY, TEXAS, AND BEING ALL OF A CALLED 58.103 ACRE TRACT DESCRIBED INA DEED TO RICHARD 0. STEWART AND SUSANNE S. STEWART, RECORDED IN COUNTY CLERK'S FILE NUMBER 01-128090, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOW: BEGINNING AT A FOUND M" IRON PIN AT THE SOUTHWEST CORNER OF SAID STEWART TRACT, THE NORTHWEST CORNER OF LEXINGTON PARK PHASE TWO, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET V, PAGE 889, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 00 DEGREES 55 MINUTES 30 SECONDS WEST WITH THE WEST LINE OF SAID STEWART TRACT, A DISTANCE OF 1117.89 FEET TO A FOUND M" IRON PIN AT THE NORTHWEST CORNER OF SAID STEWART TRACT AND THE SOUTHWEST CORNER OF A CALLED 22.982 ACRE TRACT, DESCRIBED IN A DEED TO RYAN ROAD JOINT VENTURE, RECORDED IN CLERK'S FILE NUMBER 01-14008 REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 88 DEGREES 55 MINUTES 03 SECONDS EAST WITH THE NORTH LINE OFA SAID STEWART TRACT AND THE SOUTH LINE OF SAID RYAN ROAD JOINT VENTURE TRACT, A DISTANCE OF 1029.62 FEET TO A FOUND IRON PIN AT THE SOUTHEAST CORNER OF SAID RYAN ROAD JOINT VENTURE TRACT AND THE SOUTHWEST CORNER OF HICKORY CREEK HEIGHTS ADDITION, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET N, PAGE 101, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 88 DEGREES 55 MINUTES 25 SECONDS EAST WITH THE NORTH LINE OF SAID STEWART TRACT AND THE SOUTH LINE OF SAID HICKORY CREEK HEIGHTS ADDITION, A DISTANCE OF 1299.25 FEET TO A FOUND %11 IRON PIN AT THE NORTHEAST CORNER OF SAID STEWART TRACT, THE SOUTHEAST CORNER OF SAID HICKORY CREEK HEIGHTS ADDITION, AND BEING ON THE WEST RIGHT-OF-WAY LINE OF F.M. HIGHWAY 2181; THENCE SOUTH 02 DEGREES 22 MINUTES 06 SECONDS EAST WITH THE EAST LINE OF SAID STEWART TRACT AND THE WEST LINE OF SAID F.M. HIGHWAY 2181, A DISTANCE OF 1048.98 FEET TO A % INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849 AT THE SOUTHEAST CORNER OF SAID STEWART TRACT AND THE NORTHEAST CORNER OF LEXINGTON PARK PHASE ONE, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET U, PAGE 734, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE SOUTH 87 DEGREES 14 MINUTES 19 SECONDS EAST WITH THE SOUTH LINE OF SAID STEWART TRACT, A DISTANCE OF 2356.49 FEET TO THE POINT-OF- BEGINNING, AND CONTAINING IN ALL 58.258 ACRES OF LAND. AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Utility Administration CM: Howard Martin, Utilities 349-8232 SUBJECT Consider adoption of an ordinance amending the Water Conservation and Drought Contingency Plan of the City of Denton previously enacted by the City Council in Ordinance No. 2005-121 on the 19th day of April, 2005 by adding to it Appendix "G", "The Lawn and Landscape Irrigation and Water Waste Ordinance"; amending the Water Conservation and Drought Contingency Plan in accordance with the requirements of the law; establishing lawn and landscape irrigation requirements; implementing water-wasting restrictions; requiring rain sensors and freeze gauges; providing for variances; providing for the revocation of variances; and providing penalties for violations thereof, providing a criminal penalty not to exceed $2,000 per violation; providing a civil penalty not to exceed $1,000 per day per violation and providing civil legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. The Public Utilities Board recommends approval (7-0.) BACKGROUND As a component of the City of Denton's Water Conservation and Drought Contingency Plan, the Lawn and Landscape Irrigation and Water Waste Ordinance ("Ordinance") is being implemented in order to conserve water and meet the established water savings goals of the Plan. Due to the current drought condition, the Ordinance is being implemented one year ahead of schedule. The Ordinance was presented to the Public Utilities Board ("PUB") and City Council ("Council") on March 27th and April 11th, respectively. Both the Council and the PUB supported the proposed components of the Ordinance, and the implementation time frame. For a more detailed background on the Ordinance and its components please see Exhibit 2. Staff received more specific feedback from Council and PUB regarding the enforcement of the Ordinance. Enforcement will include the following: • written notice of violation, without fines, for the first two violations; • a fine of up to $250.00 for the third offense; • a fine of up to $500.00 for the fourth offense; and, • a fine of up to $1,000.00 for the fifth offense and subsequent offenses. During the first year of implementation (June 1, 2006 thru May 31, 2007), a third written notice will be administered prior to the violation being subject to a fine. The additional notice without a fine will allow staff to an extra opportunity to educate a citizen or business owner violating the Ordinance on its components and the interpretation and intent of the ordinance. The overall goal of the ordinance is to conserve water by minimizing wasteful irrigation practices. I The Ordinance will be adopted as Appendix G, "Lawn and Landscape Irrigation and Water Waste Ordinance," of the City of Denton's Water Conservation and Drought Contingency Plan. OPTIONS 1) Adopt the proposed Ordinance. 2) Do not adopt the proposed Ordinance. RECOMMENDATION Staff recommends adopting the Ordinance as proposed. PRIOR ACTION/REVIEW (Council, Boards, Commissions) January 24, 2005 Public Utilities Board - Discussed the impending update to the Water Conservation and Drought Contingency Plan; established five and ten-year goals with a plan of how to accomplish the goals; Plan included a Lawn and Landscape Irrigation Ordinance March 19, 2005 Environment Committee Meeting - Presented the updated Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance April 11, 2005 Public Utilities Board - Presented final Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance (as bulleted above); Board voted 4-0 to adopt the updated Plan April 19, 2005 City Council - Presented final Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance; Council voted 6-0 to adopt the updated Plan March 27, 2006 Public Utilities Board - Presented the proposed components of the Lawn and Landscape and Water Waste Ordinance April 11, 2006 City Council - Presented the proposed components of the Lawn and Landscape and Water Waste Ordinance April 24, 2006 Public Utilities Board -Board approval of the Landscape and Water Waste Ordinance 7-0. FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. Lawn and Landscape Irrigation and Water Waste Ordinance 2. CC AIS from April 11, 2006 meeting 3. PUB Meeting Minutes 2 Submitted by: S"g-14-7. I Tim Fisher, P.E. Assistant Director of Water Utilities Prepared by: David Wachal Water Utilities Coordinator 3 ORDINANCE NO. 2006- AN ORDINANCE AMENDING THE WATER CONSERVATION AND DROUGHT CON- TINGENCY PLAN OF THE CITY OF DENTON PREVIOUSLY ENACTED BY THE CITY COUNCIL IN ORDINANCE NO. 2005-121 ON THE 19TH DAY OF APRIL, 2005 BY ADD- ING TO IT APPENDIX "G", "THE LAWN AND LANDSCAPE IRRIGATION AND WATER WASTE ORDINANCE"; AMENDING THE WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW; ESTABLISHING LAWN AND LANDSCAPE IRRIGATION REQUIREMENTS; IMPLE- MENTING WATER-WASTING RESTRICTIONS; REQUIRING RAIN SENSORS AND FREEZE GAUGES; PROVIDING FOR VARIANCES; PROVIDING FOR THE REVOCA- TION OF VARIANCES; AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF; PROVIDING A CRIMINAL PENALTY NOT TO EXCEED $2,000 PER VIOLATION; PRO- VIDING A CIVIL PENALTY NOT TO EXCEED $1,000 PER DAY PER VIOLATION AND PROVIDING CIVIL LEGAL REMEDIES FOR THE CITY OF DENTON, TEXAS; PROVID- ING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, § 11.1271 and 11.1272 of the Texas Water Code and the applicable rules of the Texas Commission on Environmental Quality require the City to include specific, quantified five-year and ten-year targets for water savings and specific quantified targets for water use re- ductions during periods of water shortages and drought in the Water Conservation and Drought Contingency Plan; and WHEREAS, on April 19, 2005, the City Council enacted the ordinance providing for the Water Conservation and Drought Contingency Plan for the city, by enacting Ordinance No. 2005-121; and WHEREAS, the City Council of the City of Denton, Texas recognizes that the amount of water available to the City and its water utility customers is limited, is subject to depletion and should be used efficiently; and the City Council desires to amend the said Water Conservation and Drought Contingency Plan to include further restrictions on lawn and landscape irrigation and to enact a water waste ordinance; and WHEREAS, the City Council finds that this ordinance is necessary to protect the public health of the residents of the City of Denton, Texas, in accordance with §54.001 and §54.004 of the Texas Local Government Code; and WHEREAS, the City Council deems it in the public interest to adopt the following amendments to the Water Conservation and Drought Contingency Plan as are contained in Ap- pendix "G" attached hereto; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That City of Denton Ordinance No. 2005-121, pertaining to the "Water Conservation and Drought Contingency Plan", and codified in Chapter 26 of the Code of Ordi- nances of the City of Denton, Texas, at §§26-233 and 26-234, is hereby amended, by adding to it 1 Appendix "G", which is the "Lawn and Landscape Irrigation and Water Waste Ordinance" which is attached hereto and incorporated by reference herein for all purposes. Sec. 26-233. Water conservation and drought contingency plan. (a) Adoption of plans. The Water Conservation and Drought Contingency Plan of the City dated April 19, 2005, which is attached hereto, is hereby amended and the "Lawn and Land- scape Irrigation and Water Waste Ordinance" attached hereto as Appendix "G" is hereby adopted by reference and is added to, and made a part of this Code of Ordinances for all pur- poses, as if fully set forth herein. Sec. 26-234. Criminal and Civil Penalties. (a) A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Water Conservation and Drought Con- tingency Plan, as amended (the "Plan"). For the purposes of this section, it is presumed that a person has knowingly made, caused, or permitted a use of water contrary to the measures im- plemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply: (1) The Plan prohibits the manner of use; or (2) The amount of water used exceeds the amount allowed by the Plan; or (3) The amount of use or the amount used violates the terms and conditions of a compliance agreement following a variance granted by the Assistant City Manager for Utilities; or (4) The violation of any provision of the "Lawn and Landscape Irrigation and Water Waste Ordinance" [Appendix "G"] (b) The following penalty shall apply during Stages 3 and 4 of the Water Conserva- tion and Drought Contingency Plan, as amended. Any person who knowingly violates any pro- vision of this article shall, upon conviction, be punished by a fine not to exceed two thousand dollars ($2,000.00). Each day that one or more provisions in this Plan is violated shall be con- sidered to be a separate offense. (c) The City Attorney is authorized to commence an action for appropriate legal or equitable relief in a court of competent jurisdiction in addition to the penalty mentioned in the above Subsection (b). Such additional relief may include: (1) An injunction to prevent a violation of this chapter, or of the Water Con- servation and Drought Contingency Plan, as amended; (2) Recovery for expenses incurred by the City in responding to a violation of this Chapter, or of the Water Conservation and Drought Contingency Plan, as amended; 2 (3) A civil fine of up to one thousand dollars ($1,000.00) per day for viola- tions of §26-233 or for violations of the Water Conservation and Drought Contingency Plan, as amended; (4) All other damages, costs, remedies and legal processes to which the City may be entitled. SECTION 2. That this ordinance shall be cumulative of all provisions of ordinances and of the Code of Ordinances of the City of Denton, Texas, as amended, except when provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code. All conflicting provisions of such ordinances and such Code are hereby repealed to the extent of that conflict only. SECTION 3. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph, or section of this ordinance shall be declared unconstitu- tional by the valid judgment or decree of any court of competent jurisdiction, such unconstitu- tionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sec- tions of this ordinance since the same would have been enacted by the City Council without the incorporation of this ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section. SECTION 4. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordi- nance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten days of the date of its passage. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: 3 Appendix "G" Lawn and Landscape Irrigation and Water Waste Ordinance 1. Lawn and Landscape Irrigation Restrictions A. Except for hand-watering and the use of soaker hoses for watering foundations, it shall be unlawful for any person to knowingly irrigate, water, or cause or permit the irrigation or watering of any lawn or landscape located on the premises owned, or leased, or managed by that person, within the corporate limits of the City of Denton, Texas, between the hours of 10:00 a.m. and 6:00 p.m. for each day that is within the period from June 1 through September 30 of each calendar year. B. It shall be unlawful for any person to knowingly or recklessly irrigate, water, or cause or permit the irrigation or watering of a lawn or landscape located on premises owned, leased, or managed by the person, within the corporate limits of the City of Denton, Texas, that causes: 1. a substantial amount of water to fall upon impervious areas instead of upon the lawn or landscape, or excessive irrigation, such that a constant stream of water overflows from the lawn or landscape onto a street or drainage area; or 2. an irrigation system or other lawn or landscape watering device continues to oper- ate during any form of precipitation; or 3. an irrigation system or other lawn or landscape watering device continues to oper- ate within the corporate limits of the City of Denton, Texas when the temperature is below 32 degrees Fahrenheit. C. It shall be unlawful for a person to knowingly or recklessly operate an irrigation sys- tem, or other lawn or landscape watering device, on premises owned, leased, or man- aged by that person, within the City of Denton, Texas, that: 1. has any broken or missing sprinkler heads; or 2. has not been properly maintained in a manner that prevents the waste of water. 2. Water Wasting Restrictions A. It shall be unlawful for any person to knowingly fail to repair a leaking outside faucet, or a service line leak, or any other visible outside water leaks, located on the premises owned, leased, or managed by that person, within the corporate limits of the City of Denton, Texas. 4 3. Rain Sensors and Freeze Gauges A. Any new irrigation system installed within the corporate limits of the City of Denton, Texas, on or after June 1, 2006, must be equipped with rain and freeze-sensing de- vices designed to prevent operation of the irrigation system during any form of pre- cipitation or when the ambient temperature is below 32 degrees Fahrenheit. B. It shall be unlawful for a person, on premises owned, leased, or managed by that per- son, within the city limits of the City of Denton, Texas: 1. to install, or to cause or to permit the installation of, a new irrigation system in violation of Subsection 3(A) of this ordinance; or 2. to operate, or cause or permits the operation of, an irrigation system that does not comply with Subsection 3(A) of this ordinance. 4. Variances A. The Director of Water Utilities or his/her designee may, in special cases, grant vari- ances from the provisions of Subsection 1(A) or Subsection 2(A) to persons demon- strating extreme hardship and need. Variances may be granted only under all of the following circumstances and conditions: 1. the applicant must sign a compliance agreement of forms provided by the direc- tor, and approved by the city attorney, agreeing to irrigate or water a lawn or landscape only in the amount and manner permitted by the variance; and. 2. the variance must not cause an immediate significant reduction to the city's water system; and. 3. the extreme hardship or need requiring the variance must relate to the health, safety, or welfare of the person requesting it; and. 4. the health, safety, and welfare of other persons must not be adversely affected by granting the variance. 5. Revocation of Variances A. The Director of Water Utilities, or his/her designee may revoke a variance granted when the director determines that either of the following acts have occurred: 1. the condition of Subsection 4(A) of this ordinance are not being met or no longer apply; or 2. the terms of the compliance agreement are being violated; or 5 3. the health, safety, or welfare of other persons located within the corporate limits of the City of Denton, Texas are materially or adversely affected, which facts re- quire revocation of the variance. 6. Penalties A. It shall be a separate offense under this ordinance regarding Water Conservation and Drought Contingency - Appendix "G', for each day that a person or entity knowingly violates any provision of this ordinance, or continues to violate any provision of this ordinance. B. The offenses committed under this ordinance shall be punished in the following man- ner: 1. A. written notice of violation for the first two (2) offenses, by a person or entity, within a calendar year, under this ordinance shall be issued to the person or entity violating this ordinance, but shall not give rise to any civil or criminal penalty. 2. However, when a third violation of this ordinance occurs, within a calendar year, a written notice of violation shall be issued to the person or entity violating this ordinance; and upon conviction, the person or entity shall pay a fine of up to $250. 3. When a fourth violation of this ordinance occurs, within a calendar year, a written notice of violation shall be issued to the person or entity violating this ordinance, and upon conviction, the person or entity shall pay a fine of up to $500. 5. When a fifth violation of this ordinance occurs, within a calendar year, a written notice of violation shall be issued to the person or entity violating this ordinance, and upon conviction, the person or entity shall pay a fine of up to $1,000. 6. When there are six, or a greater number of violations of this ordinance, within a calendar year, notice of each such violation shall be issued to the person or entity violating this ordinance, and upon conviction, the person or entity shall pay a fine of up to $1,000, per offense; plus the City Attorney may undertake civil action as set forth in §26-234(c) of the Code of Ordinances of the City of Denton, Texas. S:AOur Documents\Ordinances\06\Drought Plan-Water Conservation Plan- Amended 2006-Ordinance.doc 6 AGENDA DATE: April 11, 2006 DEPARTMENT: Utility Administration ACM: Howard Martin, Utilities 8232 SUBJECT Receive a report, hold a discussion and provide staff direction concerning a Lawn and Landscape Irrigation and Water Waste Ordinance. BACKGROUND On April 19, 2005, the City of Denton updated its Water Conservation and Drought Contingency Plan (the "Plan") as required by the Texas Commission on Environmental Quality. The Plan was updated to comply with a series of bills passed to fulfill a statewide water conservation initiative mandated in 2003 by the 78th Texas Legislature. A comprehensive description of this initiative and Denton's 2005 update is provided in Exhibit 2 and Exhibit 3. Perhaps the most notable of the 2003 water conservation bills is HB 2660, which requires five and ten-year water savings goals in water conservation plans. For municipal water providers, the State Water Conservation Task Force suggests a minimum annual reduction of one percent in total per-capita, based on a five- year rolling average, until a per-capita of 140 or less is achieved. Denton's five and ten-year goals were a reduction of 9 gallons per day per-capita to 180 per-capita by 2009 and 18 gallons per day per-capita to 171 per-capita by 2014. In order to comply with these requirements and meet the established goals, Denton's Plan calls for the continued implementation of Denton's ongoing conservation effort (Exhibit 3) along with both the moderate growth of Denton's effluent reuse program and the implementation of a lawn and landscape irrigation ordinance. A lawn and landscape ordinance is intended to minimize waste in landscape irrigation. In North Central Texas, Dallas, Arlington, Carrollton, Frisco, and Allen all have similar forms of a lawn and landscape irrigation ordinance; Fort Worth is in the process of implementing an ordinance this spring. Dallas' effort to help minimize water waste through an irrigation ordinance began in 2001 and since then has issued 1,491 warnings and 12 citations. Dallas enforces their ordinance through their Code Enforcement Division. Arlington implemented their ordinance in 2004 and enforces their ordinance through both their Water Utility staff and Neighborhood Services Division (Code Enforcement) and, to date, have not had to issue any fines. Frisco and Carrollton implemented their ordinances last year. Both cities enforce their programs entirely through their Water Utility departments and neither has had to issue fines (Carrollton) or terminate service (Frisco). Based on personnel interviews with staff members of the aforementioned cities, the common thread is that generally the enforcement of the ordinance is mostly an educational exercise; outside of a very few difficult customers, implementation and enforcement has not been overly problematic. Proposed Ordinance According to Denton's Plan, the ordinance was to be implemented in 2007, with an educational program preceding it in 2006. However, due to the public's awareness of local water supplies I Exhibit 2 and water conservation issues brought about by the current drought, along with the potential for the drought to persist throughout the summer, staff suggested implementing the ordinance in 2006 (Exhibit 4). Feedback from Council members indicated that it would be prudent to implement the ordinance this year, while potentially in a drought and at a time when there is a high awareness of water conservation. The ordinance being proposed is based on practical, common sense conservation measures that are consistent with other cities in the region and includes the following elements (see draft ordinance, Exhibit 1): Prohibition of outdoor watering with sprinklers from 10:00 a.m. to 6:00 p.m. every day from June 1 through September 30. (Watering with hand-held hoses, soaker hoses, or containers is allowed.) Requirement that all new irrigation systems include rain and freeze sensors. Requirement that all new irrigation systems be in compliance with state design and installation regulations (Texas Administrative Code Title 30, Part 1, Chapter 344). Prohibition of design, operation, or maintenance of irrigation systems that excessively water impervious areas, or generate excessive runoff from over watering, such that a constant stream of water overflows onto a street or drainage area. Prohibition of use of poorly maintained sprinkler systems that waste water (broken or improperly working heads). Prohibition of outdoor watering during any form of precipitation. Enforcement of the ordinance by a system of warnings followed by fines for continued or repeat violators. In addition to the requirements related to irrigation, staff is also proposing a water waste component in the ordinance. The State Water Conservation Implementation Task Force was created to fulfill the mandate of the legislation resulting from the 2003 water conservation bills. The Task Force was assigned several tasks, one of which included identifying, evaluating, and selecting Best Management Practices (BMPs) for municipal water uses. Prohibition of wasting water was among the Task Force's suggested BMPs. Staff is proposing to include the following component in the ordinance: Prohibition of leaking outside faucets, leaks on customer service lines, and excessive leakage of interior plumbing Staff also anticipates there may be special cases where there is an extreme hardship in meeting ordinance requirements. Staff will evaluate those needs on a case-by-case basis and, if necessary, provide relief according to the requirements outlined in the Variance section of the ordinance. Implementation Staff is proposing to implement enforcement of the ordinance through both Utility personnel and the city's existing Code Enforcement Program. As with the other cities in the region implementing irrigation ordinances, enforcement will most likely be initiated by citizen complaints and Utility personnel that observe violations while working out in the field. Staff proposes to enforce the program in the following manner: 1st Offense Door hanger delivered by Utility staff member 2nd Offense Warning issued by a Code Enforcement Officer 3rd Offense Citation issued by Code Enforcement Officer with a fine of $250 4th Offense Termination of water service by Water Utility Department The offenses would accumulate on a per year basis, such that at the beginning of each year every customer would begin with zero offences. Staff is also recommending that for the first year of implementation, only warnings will be given. Prior to implementation of the ordinance, staff will notify all local irrigators and irrigation customers with high demands to inform them of the requirements being proposed in the ordinance, and if necessary, meet with them individually to discuss concerns regarding compliance with the ordinance. In addition, Water Utility staff will meet with Denton's Facilities and Parks and Recreation personnel to discuss issues related to citywide irrigation procedures and ensure that the city's facilities will be in compliance with the ordinance. Proposed Timeline March 27, 2006 Public Utilities Board - Proposed Ordinance and implementation plan April 4, 2006 City Council Work session - Proposed Ordinance and implementation plan April 10, 2006 Public Utilities Board - Vote on passage of the Ordinance May 2, 2006 City Council Regular Meeting - Vote on passage of the Ordinance OPTIONS 1. Proceed with proposed ordinance and implementation plan according to proposed timeline. 2. Do not proceed with proposed ordinance. RECOMMENDATION Staff recommends proceeding with the ordinance and implementation plan as proposed. The City Council approval date has been set for May 2nd in order to: 1) coincide with National Drinking Water Week, and 2) set the effective date of the Ordinance prior to June 1 (the beginning date for time of day watering in the ordinance). In order to meet this date staff would appreciate feedback and direction early in the process. PRIOR ACTION/REVIEW (Council, Boards, Commissions) January 24, 2005 Public Utilities Board - Discussed the impending update to the Water Conservation and Drought Contingency Plan; established five and ten-year goals with a plan of how to accomplish the goals; Plan included a Lawn and Landscape Irrigation Ordinance March 19, 2005 Environment Committee Meeting - Presented the updated Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance April 11, 2005 Public Utilities Board - Presented final Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance (as bulleted above); Board voted 4-0 to adopt the updated Plan April 19, 2005 City Council - Presented final Plan, which included the implementation of a Lawn and Landscape Irrigation Ordinance; Council voted 6-0 to adopt the updated Plan FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. Proposed Lawn and Landscape Irrigation and Water Waste Ordinance 2. CC AIS from April 19, 2005 meeting 3. PUB AIS from January 24, 2005 meeting 4. Tim Fisher's January 13, 2006 Drought Update 5. PUB Minutes Submitted by: S11. "A Tim Fisher, P.E. Assistant Director of Water Utilities Prepared by: David Wachal Water Utilities Coordinator I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 24, 2006 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair called the meeting to order at 9:00 a.m. on Monday, April 24, 2006 in the 7 Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, 8 Texas. 9 10 Present: Chair Newell, George Hopkins, Dick Smith, Bill Cheek, Phil Gallivan, John Baines 11 and Phil Gallivan 12 13 Ex Officio Member: 14 Howard Martin, Interim City Manager 15 16 17 18 ITEMS FOR INDIVIDUAL CONSIDERATION: 19 20 21 4) Consider recommending approval of the Lawn and Landscape Irrigation and Water Waste 22 Ordinance. 23 24 Tim Fisher, Assistant Director of Water/Wastewater Utilities, reviewed the ordinance stating that 25 staff had revised the Ordinance to include changes from the Board and the City Council. 26 27 Board Member Bob Bland moved to approve with a second from Cheek. The motion was 28 approved by a vote of 7-0. 29 Exhibit 3 AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Legal Department CM/DCM/ACM: Herbert L. Prouty, Consulting Assistant City Attorney SUBJECT: Announcement of Council Member Pete Kamp's conflict of interest in the Emergency Shelter Grant Program ("ESGP"), due to her service on the Salvation Army Advisory Council, a potential contract recipient of ESGP funds, in accordance with the requirements of 24 CFR 576.57(d) and consider and take action to authorize the City staff to initiate the process of submitting an application to HUD through the Texas Department of Housing and Community Affairs for an exception to the conflict. BACKGROUND: The City receives ESGP funds from the United States Department of Housing and Urban Development ("HUD") through the Texas Department of Housing and Community Affairs ("TDHCA") the recipient of these funds. We have made inquiries to HUD regarding whether or not Council Member Kamp's service on the Salvation Army Advisory Council constitutes a conflict of interest under the ESGP grant regulations since the Salvation Army is a potential recipient of ESGP funds. Council Member Kamp serves as a non- compensated volunteer on this committee. We have received a preliminary determination from HUD's Office of Counsel that, even if Council Member Kamp abstains from voting on any ESGP matter, that she still is in a position to gain information with regard to ESGP activities. Therefore, her participation on the committee of this agency would be a conflict of interest under Section 24 CFR 576.57(d). Like the recent ESGP conflicts where HUD granted an exception for Council Members Mulroy and Thomson, this is purely a technical conflict which does not involve any financial interest. Council Member Kamp does not have a conflict under the City Charter, City Code, the Local Government Officials Conflict of Interest Act (Section 171 of the Tex. Loc. Gov't Code) or any other state or local law. Even if this was not the case, any conflict under these laws or under your Code of Ethics for Denton Elected and Appointed Officials could be resolved by abstaining from voting or deliberating on the ESGP item. But since Ken McDonald, with the HUD Office of Counsel, made a preliminary determination that there is a conflict under these HUD regulations, in order to resolve the conflict, we must obtain an exception to the conflict from HUD by applying for an exception through the TDHCA to avoid any problem with the future funding of the ESGP. In order to apply for the exception, Council Member Kamp must meet two threshold requirements. The first threshold requirement is that TDHCA - the recipient of the funds - must submit an opinion from its attorney that the Councilmember's service on the Salvation Army Advisory Council would not violate state or local laws. A copy of the opinion that we would request TDHCA to adopt is included in this week's status report. The opinion will be submitted to HUD as a part of their application for the exception. The second threshold mandates that the conflict of interest must be publicly disclosed. This threshold requirement will be satisfied by the Council Member Kamp reading into the record the S:IOur DocumentslMiscellaneous1061050206 AIS~ouncilmember public announcements.doc attached statement which describes this conflict of interest and which has been approved by HUD's Office of Counsel. OPTIONS: 1. Council Member Kamp can read the statement into the record and the City Council can authorize the City staff to begin the process for submission of an application for an exception for a potential conflict of interest under the ESGP through HUD. 2. Council Member Kamp can choose not to read the statement into the record and staff will not be authorized to initiate the application for an exception. RECOMMENDATION: In order to resolve the potential conflict and to avoid any future impairment to the ESGP funding, we recommend that Council Member Kamp read the attached statement into the record, and that the City Secretary incorporate the statement into the minutes and certify this portion of the minutes. HUD has recently granted an exception to Council Members Mulroy and Thomson on similar technical ESGP conflicts of interest. Since the potential conflict of Council Member Kamp is a purely technical conflict, we are cautiously optimistic that HUD will grant the exception. With your approval, we will request TDHCA to submit the certified minutes and attorneys opinion with the exception application. PRIOR REVIEW: The conflict of interest statements which will be read into the record have been reviewed and approved both by our office and by Ken McDonald, of HUD's Office of Counsel. FISCAL INFORMATION: There will be no fiscal impact as a result of this action. However, if this action is not taken, the conflict exception would not be granted. If the conflict exception is not granted, this could possibly impair the City's ability to obtain future ESGP funds. Respectfully submitted, Herb Prouty HLP:cd Attachments Page 2 SAOur DocumentsWiscellaneous1061050206 AIS-councilmember public announcements.doc S:%Our DocumentslMiscellaneous1061Kamp Agenda Item.doc Public Disclosure Statement Agenda Item Announcement of Council member Pete Kamp's conflict of interest in the Emergency Shelter Grant Program ("ESGP") through her serving on the Salvation Army Advisory Council as a non-compensated board member, an agency that has in the past or may in the future receive ESGP funds or who is a contractor or subcontractor of ESGP fiends in accordance with the requirements of 24 CFR 576.57(d) and consider and take action to authorize the City staff to initiate the process for submitting an application to HUD for an exception to the conflict through the Texas Department of Housing and Community Affairs. Statement to be read into the records by Council member Pete Kamp: "The City of Denton is in the process of applying for Emergency Shelter Grant Program ("ESGP") funds from the Texas Department of Housing and Community Affairs, which administers HUD's state ESGP funds in Texas. I, Pete Kamp, want to make it known that since becoming a City Council member, I have served on the Advisory Council of the Salvation Army, as a non-compensated board member. The Salvation Army has in the past or may in the future receive ESGP funds or is a contractor or subcontractor for the ESGP funds administered by the City of Denton. HUD has made a preliminary determination that this creates a conflict of interest under 24 CFR 576.57(d). Although, if required, I will abstain from any participation in any vote concerning the grant of ESGP funds, HUD has determined that I am still in a position to gain information with regard to ESGP activities and that the City should request an exception from this conflict to HUD through the Texas Department of Housing and Community Affairs the recipient of ESGP funds. One of the special requirements for an exception to this conflict is that the conflict be publicly disclosed in accordance with 24 CFR 570.611(d)(1). In order to meet this public disclosure requirement, I, Pete Kamp, am hereby making this public disclosure as part of the City's request for an exception from these conflict of interest provisions. I request that the City Secretary record this statement in the minutes of this meeting." AGENDA INFORMATION SHEET AGENDA DATE: May 2, 2006 DEPARTMENT: Legal CMIDCMIACM: Herbert L. Prouty, Consulting Attorney SUBJECT: Consider approval of a Resolution ordering Atmos Energy, Mid-Tex Division to show cause regarding the reasonableness of its existing natural gas distribution rates within the City; requiring Atmos Energy, Mid-Tex Division, to submit a rate filing package based on a test year ending December 31, 2005; authorizing the City to join with other cities known as the Atmos Texas Municipalities ("ATM") to direct the activities of lawyers and consultants; authorizing the hiring of attorneys and consultants; directing that such filing shall be made prior to May 31, 2006; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting complies with the Open Meetings Act; making such other findings and provisions related to the subject; and declaring an effective date. BACKGROUND: On the 5u' day of March, 2002, the City Council passed Ordinance No. 2002-073 which required all gas utility companies to give specific notice of the impact of any rate requests on the citizens of the City of Denton. On the 15ffi day of April, 2003 the City Council passed Ordinance No. 2003-111 requiring all gas utility companies to file their rate request in such a manner that it would facilitate review by you, and any rate consultants that were hired by you or any coalition of cities which you join to investigate the gas utility rate request. Subsequently, after the passage of these ordinances, TXU challenged their validity at the Railroad Commission. The Railroad Commission upheld the validity of both the ordinances. Accordingly, both TXU and CoServ Gas have since filed rate requests in compliance with the notice and rate filing package ordinances. Subsequent to your passage of the above-mentioned ordinances, Atmos Energy purchased TXU Gas in September of 2004. The TXU Gas service carrier became Atoms Energy Mid-Tex Division. The purchase of TXU Gas almost doubled the size of Atmos. Although base rates were set for the Mid-Tex area in May 2004, under a rate request and filing by TXU Gas, rates have never been set for the Mid-Tex area under the ownership of Atmos - an entirely different company from TXU Gas. The acquisition was supposed to produce substantial savings in operating costs. This is one of the reasons it is believed that Atmos is experiencing excessive earnings. The Gas Utility Regulatory Act authorizes local regulatory authorities (municipalities) to initiate rate proceedings in order to make a determination concerning the reasonableness of existing rates. We anticipate that Atmos will file a new rate increase request prior to or by the end of May or in early June of this year. This will be different than the Atmos GRIP request which you are also considering. This Ordinance orders Atmos to file a complete rate filing package with S:lOur DocumentsWiscellaneous1061AIS Atmos Rate Case.doc Agenda Information Sheet Page 2 the City of Denton before May 31, 2006 and to provide conspicuous notice of the effect of any such rate filing on the gas customers residing in the Denton service area for four consecutive weeks in the Denton Record-Chronicle. Filing such a rate filing package is necessary in order to properly set rates. This will help insure Atmos follows the criteria set forth in the rate filing package and notice ordinance of the City of Denton as set forth above. The cities of Gatesville and Longview have also passed such ordinances. The Resolution also requires Atmos to show cause regarding the reasonableness of its gas rates within Denton. Similar show case proceedings regarding the reasonableness of Atmos's earnings have been initiated in Kentucky, Tennessee, and the City of Dallas. Since Atmos purchased TXU Gas after the passage of these ordinances, we feel it is necessary to pass this Resolution in order to fully inform Atmos of its duties under these ordinances. The Resolution before you also authorizes the City to participate in the Atmos Texas Municipalities C'ATM") coalition of cities through a steering committee which will select experts to work with special counsel to investigate any future rate filings by Atmos. The Resolution authorizes the appointment of Jim Boyle, Alfred Herrera and Daniel Lawton to act as special counsel with regard to proceedings involving Atmos before the City, the Railroad Commission of Texas or any court of law. Both Jim Boyle and Dan Lawton have represented the City successfully in many other gas utility matters and rate requests. Alfred Herrera is a new associate of Jim Boyle who also has experience in gas utility regulatory matters. OPTIONS: 1. City Council can approve the Resolution requiring Atmos to file in accordance with our notice and rate package ordinances, requiring them to show case regarding the reasonableness of their rates and joining the ATM coalition. 2. City Council can refuse to pass the Resolution. RECOMMENDATION: The City staff recommends that you pass the Resolution ordering Atmos Energy to show cause regarding the reasonableness of its existing natural gas distribution rates within the City, and requiring them to submit any future rate requests in accordance with the City's rate filing package and notice ordinances. Failure to pass the Resolution would mean that Atmos could file a rate request without complying with the City notice and rate filing ordinances which would make it much more difficult for you and any consultants hired by ATM to investigate the reasonableness of the rate request. Causing Atmos to show cause regarding the reasonableness of their rates is consistent with action taken by other states and the City of Dallas. This would also help assure current Atoms gas rates are reasonable. FISCAL IMPACT: There will be no initial fiscal impact since the ATM consultants or lawyers involved anticipate that Atmos, as a gas utility, will be under an obligation to reimburse reasonable rate case expenses as in general rate cases that are initiated by the utility. Although we believe ultimately we will collect our rate case expenses from Atmos, we cannot guarantee that Atmos will be SAOur DocumentsNiscellaneous\WAiS Atmos Rate Case.doc Agenda Information Sheet Page 3 required to reimburse the attorneys and other consultants reasonable rate case expenses. The show cause order and the resulting investigation of any rate case filed by Atmos could result in a significant reduction in existing or requested rates to the benefit of Denton gas customers. Respectfully submitted: O~HaerObeAt.routy l-- Consulting Attorney I S:%Our DocumentsWiscellaneouOMAIS Atmos Rate Case.doc 5:1Our Documents\Resolutions1061Resolution ATMOS Rate Case.doc RESOLUTION NO. A RESOLUTION BY THE CITY OF DENTON, TEXAS ORDERING ATMOS ENERGY, MID-TEX DIVISION TO SHOW CAUSE REGARDING THE REASONABLENESS OF ITS EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN THE CITY; REQUIRING ATMOS ENERGY, MID-TEX DIVISION, TO SUBMIT A RATE FILING PACKAGE BASED ON A TEST YEAR ENDING DECEMBER 31, 2005; AUTHORIZING THE CITY TO JOIN WITH OTHER CITIES KNOWN AS THE ATMOS TEXAS MUNICIPALITIES ("ATM") TO DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS; AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS; DIRECTING THAT SUCH FILING SHALL BE MADE PRIOR TO MAY 31, 2006; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos Energy, Mid-Tex Division ("Atmos"); and WHEREAS, the City has the authority under § § 103.001 and 104.151, GURA, to initiate a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any way in violation of any provision of law; and WHEREAS, a different company, known as TXU Gas, had been the natural gas distribution provider for the City until the system was purchased by Atmos Energy Corporation in September 2004; and WHEREAS, due to the acquisition by Atmos Energy Corporation there is a need to determine if Atmos' rates are excessive; and WHEREAS, Atmos should be required to show cause whether its rates and its overall rate of return are reasonable; and WHEREAS, a coalition of cities known as Atmos Texas Municipalities ("ATM") has been organized to review the reasonableness of rates and services in the Mid-Tex region; and WHEREAS, ATM was previously the Alliance of TXU Municipalities and it operated as a coalition of cities for most of the last ten years; and WHEREAS, the City benefits from the expertise and the efficiencies of ATM in reviewing the reasonableness of Atmos' rates and services; and WHEREAS, under GURA § 103.022 Atmos is required to reimburse the reasonable rate case expenses of the ATM cities; NOW, THEREFORE, SA0ur DocumentslResolutions1061Resolution ATMOS Rate Case.doc THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set out in the preamble to this resolution are hereby in all things approved. SECTION 2. Atmos is hereby directed to show cause regarding the reasonableness of its existing natural gas distribution rates within the City. A rate filing package consistent with the rate filing package ordinances of the Cities of Denton and Longview shall be filed by May 31, 2006, based upon a test year ending on December 31, 2005. SECTION 3. In the event that Atmos claims that it is entitled to an increase in rates, Atmos shall provide public notice in a manner which is consistent with the public notice ordinances for the Cities of Leander, Greenville, Burnet, Corsicana, Manor, Bertram, Gatesville, Longview and Denton. SECTION 4. The City shall participate with other cities in the aforementioned proceedings as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM") and ATM shall select the experts to work with special counsel. SECTION 5. Atmos shall reimburse within 30 days after submission the City's reasonable monthly costs associated with the City's activities related to the rate review or in related proceedings. SECTION 6. Subject to the right to terminate employment at any time, the City authorizes Jim Boyle, Alfred R. Herrera and Daniel Lawton to act as special counsel with regard to rate proceedings involving Atmos before the City, the Railroad Commission of Texas or any court of law. SECTION 7. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings act, Texas Government Code, Chapter 551. SECTION 8. This Resolution shall become effective from and after its passage. SECTION 9. The City Attorney or his designee shall send a copy of this Resolution to Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240 and to Mr. Jim Finley, City Attorney, City of Longview Texas at fax number 903-237- 1009. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR Page 2 of 3 ` SA0ur Documents\Resotutions1061Resoiution ATMOS Rate Case.doc ATTEST: 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: May 2, 2006 DEPARTMENT: Legal CMIDCMIACM: Herbert L. Prouty, Consulting Attorney SUBJECT: Consider approval of a Resolution authorizing the suspension of the effective date until July 14, 2006 for the Gas Reliability Infrastructure Program Adjustments for calendar year 2005 proposed by Atmos Energy Corporation's Mid-Tex Division (Atmos Energy); authorizing participation in a coalition of cities known as Atmos Texas Municipalities ("ATM"); authorizing the hiring of lawyers and rate experts; authorizing the City's participation to the full extent permitted by law at the Railroad Commission of Texas with regard to any Gas Reliability Infrastructure Program adjustments proposed by Atmos Energy; requiring the reimbursement of municipal rate case expenses; finding that the meeting complied with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. BACKGROUND: On March 31, 2006, Atmos Energy Mid Tex Division filed its third infrastructure adjustment or Gas Reliability Infrastructure Program ("GRIP") increase requesting a rate increase for the difference in its capital investment for the calendar year 2005 over the proceeding 2004 calendar year. Atmos is seeking an increase of $8.5 million dollars for residential customers and an increase of $2.6 million for commercial customers for "infrastructure" improvements for calendar year 2005. The monthly increase in the customer charge for residential customers is $0.51 and for commercial customers is $1.75. This will be the third increase that Atmos Gas has requested in the last twelve months. Several documents from Atmos's rate filing showing their basis for and the impact of the rate increase are attached. More information on the impact of this increase to the various classes of gas customers in Denton is included in the Legal Department's status report. The Resolution calls for the City to participate with other cities who have worked together under the coalition of cities known as the Atmos Texas Municipalities ("ATM"). Prior to purchase of the TXU Gas, the coalition was known as the Alliance of TXU Municipalities. This coalition has been effective over the last ten years in being an advocate for cities at the Railroad Commission and preserving the City's municipal jurisdiction. The City's activities have generally resulted in lower gas utility rates than would have been approved without the City's participation. i The infrastructure adjustment sought by Atmos goes under the name of the Gas Reliability Infrastructure Program ("GRIP"). The GRIP adjustments for 2003 are now on appeal before Travis County District Court. The adjustments for 2004 will also be before Travis County District Court in the next two months. A decision on 2003 adjustments is expected by October. I i SA0ur DocumentsWiscellaneous106WS Atmos GRIP 4-6-06.doc i i .Agenda Information Sheet 'Page 2 The Railroad Commission has not allowed cities to intervene or participate in a contested proceeding at the Commission dealing with the GRIP adjustments. ATM believes this is a fundamental error. ATM also believes that Atmos has seriously overstated the amount it's allowed to collect under the GRIP statute. Atmos intends to make these rates effective on May 31, 2006. The Utility Code allows the city to suspend the rates for 45 days from the effective date and the Resolution before you in concurrence with ATM's recommendation, recommends the City suspend the effective date of the rates until July 14, 2006. The Resolution also authorizes the City to participate with the ATM coalition of cities in investigating this matter, to hire consultants through a steering committee of ATM cities and to hire utility attorneys Jim Boyle, Alfred R. Herrera and Daniel Lawton to represent us as counsel in this proceeding. OPTIONS: 1. City Council can approve the Resolution suspending the effective date of the rates, joining the ATM coalition of cities and hiring special counsel. 2. City Council can refuse to pass the Resolution and the GRIP increase would go into effect as of May 31 of this year. RECOMMENDATION: The City staff recommends that you pass the Resolution suspending the effective date of the rates until July 14, 2006, joining the ATM coalition of cities and hiring special counsel to investigate this rate increase. It is important to participate in this proceeding so the City does not forfeit rights as a regulatory authority which are currently in review on appeal. Failure to take action would mean the third GRIP increase request by Atmos would go into effect as of May 31 of this year. Suspending the effective date of the requested rates also would give the ATM consultants and special counsel more time to investigate the GRIP increase. FISCAL IMPACT: ATM does not anticipate any initial effect on the City's funds to review and participate with the other ATM cities with regard to Atmos's filings. ATM will seek reimbursement of the rate case expenses from ATM for this and the other GRIP increases. Although reimbursement of rate case expenses is not guaranteed, we believe that all the consultant and special counsel expenses in this proceeding should be approved by the Railroad Commission. Participation in this proceeding will also tend to insure that gas utility customers of Atmos in the Denton service area receive reasonable rates and could result in a reduction of requested rates. Respectfully submitted: Herbert L. routy Consulting Attorney ~I SAO. ➢ocwoe.t.M,eccll~yi &MS Amos GRIP4-".&. ALqP OS RECEIVED MAR 3 1 20M energy . CITY OFENTON DEPT March 31, 2006 TO THE GOVERNING BODY OF ALL MUNICIPALITIES SERVED BY ATMOS ENERGY CORP., MID-TEX DNISION Enclosed for filing in accordance with the provisions of Section 104.301 of the Texas Utilities Code ("Section 104.301") please find tariffs for, gas services provided to customers within your city (the "City") by Atmos Energy Corporation's Mid-Tex D~isian-(the"-lulid-Tex Division".or the.`:Company.°)._Thesctariffs_.will be effective on.... . May 30, 2006, and are attached within the enclosed package in the section designated "Tariffs." Under Section 104.301, as amended, the City is provided the opportunity to review the filing and act before May 30, 2006. The City may also act before May 30, 2006, to suspend the effective date of these Tariffs for forty-five (45) days after that date. These tariffs establish an interim rate adjustment in the Mid-Tex Divisions monthly customer charge or meter charge effective in the City to recover the cost of new investment in new facilities used to provide gas utility services. These tariffs apply only to the distribution portion of the Mid-Tex Division and will only be in effect until the effective date of implementation of rates resulting from the Company's next rate case. All amounts collected under the adjustments of these tariffs are subject to refitnd based upon. the findings in the next rate case. In this interim rate tariff filing, the Mid-Tex Division is implementing an interim rate adjustment based on the difference between the value of the invested capital for the Mid- Tex Division as of December 31, 2005 dedicated to public use and the value of the invested capital for the Mid-Tex Division as of December 31, 2004, as approved by the Commission in GUD Nos. 9615, 9623, 9628 and 9633. Amos Energy Corporation 5420 LBj Freeway, suite 1900, Dallas, Texas 75240 Also enclosed for filing are additional informational materials: (a) The Company's calculations of the Interim Cost Recovery and Rate Adjustment Amount OVA - Company' Section). (b) The Company's calculations demonstrating the earnings of the Mid-Tex Division during 2005 ("EMR - Company" Section). (c) The Project Report describing the investment projects used by the Company in providing utility service which were both completed and placed in service during 2045 as well as the investments retired or abandoned during 2005 ("Project Report'' Section). The Project Report also states the cost, need, and customers benefited by the change in investment. (d) The Relocation Project Report providing certain supplemental information about relocation projects included in the Project Report (`'Relocation Project Report'' Section). (e) The affidavits of Charles R. Yarbrough attesting to (i) the method and date on which notice will be given to all customers, and (ii) relocations. Daniel M. Meziere also provides an affidavit which verifies that the Mid-Tex Division's books and records are kept in. accordance with the rules of the Railroad Commission of Texas. Barbara W. Myers also provides an affidavit which verifies that schedules enclosed are summaries of the Mid-Tex Division's books and records related to the invested capital used by the Company in providing utility service ("Affidavits" Section). The filing herein also includes reports required by the Railroad Commission of Texas, which are enclosed for your review C TRC Reports" Section). Notice of this proceeding will be provided to affected customers within the City by bill insert or individual mailing within 45 days after the date. you receive this filing in accordance with Section 104.301. Finally, the Company respectfully requests that the City not suspend consideration of this filing. Instead, we urge the City to allow the interim rate adjustment to go into effect by operation of law. If the City desires to take some definitive action on the filing, we urge the City to approve or deny the filing by May 30, 2006 in order to allow coordinated handling at the Railroad Commission of any appeals. Respectfully Submitted, a - __R1CllaTdT del- - - - Director of Rates, Atmos Energy Corp., Mid-Tex Division cc (with enclosures): Mr. Stephen L. 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O G 'i3 O _ u Q > 14 U O 4 v~ TO U R3 O L 73 "a (Z r~ ad cz -d- El) (40a 0 to Z 0 .2 U -0 U ~U _ o va,H Hri .a a Q CUSTOMER NOTICE Pursuant to Texas Utilities Code Section 104301, the Mid-Tex Division of Atmos Energy Corporation (the "Company") filed an application for an interim rate adjustment with the Railroad Commission of Texas on March 31, 2006 and with each incorporated municipality served by its natural gas distribution system on March 30 or March 31, 2006. The proposed interim rate adjustment will apply to the Company's entire distribution system and provides a regulated cost recovery for the additional capital investment incurred in 2005 used in providing utility service. These costs were not previously included in any rates for service. The Company proposes to increase its meter charges in the amounts listed in the table. In accordance with Texas Utilities Code Section 104.101; the increase does not constitute a major change in the Company's rates. j Proposed Rate Adjusted 2005 Interim Adjusted Increase Schedules Base Charge Adjustment Charge Each Bill Rate I - _-1ndustriaL-- Sales; $223.49 $78.47 $301.96 $78.47 Rate T - per meter per meter per meter per meter Transportation per month per month per month per month Persons with questions or who want more information about this filing may contact the Company at 1-800-460.3030. A copy of the filing will be posted at the following Web site: and will be available for inspection during normal business www.atmosenergy.com/ hours at the Company's office located at 5420 LBI Freeway, Suite 1800, Dallas, Texas, 75240. Customers who receive service inside the boundaries of an incorporated municipality and who wish to contact the regulatory authority having jurisdiction over this filing should contact their respective municipality. Customers who receive service outside the boundaries of an incorporated municipality and who wish to contact the regulatory authority having jurisdiction over this filing should contact the Gas Services Division, Market Oversight Section, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. CUSTOMER NOTICE Pursuant to Texas Utilities Code Section 104.301, the Mid-Tex Division of Atmos Energy Corporation (the "Company'') filed an application for an interim rate adjustment with the Railroad Commission of Texas on March 31, 2006 and with each incorporated municipality served by its natural gas distribution system on March 30 or March 31, 2006. The proposed interim rate adjustment will apply to the Company's entire distribution system and provides a regulated cost recovery for the additional capital investment incurred in 2005 used in providing utility service. These costs were not previously included in any rates for service. The Company proposes to increase its meter charges in the amounts listed in the table. In accordance with Texas Utilities. Code Section 104.101, the increase does not constitute a major change in the Company's rates. Proposed FTran Adjusted 2005 Interim Adjusted Increase e&_ - - Base Ghar Char e_-._ Each B~li_._ al $223.49 $78.47 $301.96 $78.47 per meter per meter per meter per meter tion er month per month er month per month Persons with questions or who want more information about this filing may contact the Company at 1-800-460-3030. A copy of the filing will be posted at the following Web site: www.atrnoseneray.com/DiR will be available for inspection during normal business hours at the Company's office located at 5420 LBJ Freeway, Suite 1800, Dallas. Texas, 75240. Customers who receive service inside the boundaries of an incorporated municipality and who wish to contact the regulatory authority having jurisdiction over' this filing should contact their respective municipality. Customers who receive service outside the boundaries of an incorporated municipality and who wish to contact the regulatory authority having jurisdiction over this filing should contact the Gas Services Division, Market Oversight Section. Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. C13 a U C t O O N U c U U o U ~ V co N . ~ N 7 'Ej C] ~ N w C7rm a N m U U :2 v c73 m m~2 E c n mW J E a?n eu ~ l, U i~ 0r ~ m K a t w v a S7 _ 0 E CO M c N F) r m c c c~ E ~ U m ~ h V o ~riomo a is is ~ co c dk CO R Q. C E7 r t- ao N h ~i 4 N CO O m EH fi4 EE! 40 m t.4 rnr r m ffl Eo m° rn N L6 ~i NcI s2 ! 33 m U Q o> o r m CA to O ~ r I,9 Q N ' 19 69, 6! EA. ER w m ` K7 y r ~ ® r 4? 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RESOLUTION OF THE CITY OF DENTON TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY CORPORATION'S MID-TEX DIVISION (ATMOS ENERGY); AUTHORIZING PARTICIPATION IN A COALITION OF CITIES KNOWN AS ATMOS TEXAS MUNICIPALITIES ("ATM'); AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS WITH REGARD TO ANY GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS PROPOSED BY ATMOS ENERGY; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on or about March 31, 2006 the Atmos Energy Corporation's Mid-Tex Division ("Atmos Energy") filed an application with the City to increase gas rates for its Gas Reliability Infrastructure Program ("GRIP") for calendar year 2005 pursuant to Section 104.301 of the Gas Utility Regulatory Act ("Act"); and WHEREAS, due to the ratemakiing complexity of Section 104.301 of the Act and the fact that this is just the third application for recovery under that section of the Act; it is therefore necessary to engage the expertise of lawyers and consultants who specialize in ratemaking proceedings before regulatory authorities to assist the City as provided for in Section 103.022 of the Act; and WHEREAS, given the complexity and the need to carefully review the proposed GRIP adjustment it is necessary to suspend the effective date for implementing the GRIP adjustment until at least July 14, 2006 in order to allow the City's rate experts sufficient time to determine the merits of Atmos Energy's proposed GRIP adjustment; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating Atmos Energy's request for a GRIP adjustment it makes sense to coordinate the City's efforts with a coalition of similarly situated municipalities; and WHEREAS, a coalition of municipalities, known as the Alliance of TXU Municipalities ("ATM") has been active in gas utility ratemaking proceedings; and WHEREAS, in light of the sale of TXU Gas to Atmos Energy, the coalition known as the Alliance of TXU Municipalities is now known as the Atmos Texas Municipalities ("ATM"); and WHEREAS, the City will join with other cities participating in ATM in a steering committee in order to coordinate the hiring and direction of legal counsel and consultants working on behalf of ATM and the City; NOW, THEREFORE, S AOur Documents\Resolutions1061Resolution ATMOS GRIP 4-6-06,doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The statements set out in the preamble to this resolution are hereby in all things approved and adopted. SECTION 2. The effective date for the proposed GRIP adjustments by Atmos Energy, and the tariffs related thereto, are hereby suspended until July 14, 2006 in order to complete the review and investigation by City's experts. SECTION 3. The City is authorized to join with other cities in a coalition of cities known as the Atmos Texas Municipalities ("ATM") with the understanding that the steering committee of ATM will provide direction and guidance to the lawyers who are representing said cities. SECTION 4. The City employs Jim Boyle, Alfred Herrera and Daniel Lawton as special counsel to represent the City with regard to the proposed GRIP adjustments of Atmos Energy before local and state regulatory authorities and any court of law and authorizes special counsel to employ such rate experts as are recommended by the ATM Steering Committee. SECTION 5. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to Atmos Energy for reimbursement. SECTION 6. City's legal representatives shall have the right to obtain additional information from Atmos Energy through the service of requests for information, which shall be responded to within twenty (14) days of receipt of such requests for information. SECTION 7. Atmos Energy shall reimburse the City, through the designated representative city of the Steering Committee, for the reasonable costs of attorneys and consultants and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. SECTION 8. The City Attorney or his designee shall notify Atmos Energy of this Resolution by sending a copy of same to Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240-2601 and ATM shall be notified by sending a copy of this resolution to Mr. Jim Finley, City Attorney for the City of Longview by fax to (903) 239-5539. SECTION 8. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings act, Texas Government Code, Chapter 551. SECTION 9. This Resolution shall become effective from and after its passage. Page 2 of 3 S:IOur Documents\Resolutions1061Resolution ATMOS GRIP 4-6-06.doc PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 3 of 3 S:\Our Documents\Ordinances% Master Venue Agr-Denton Air Fairldoc Handout to Council 5/2/06 Item 3L ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND AUTHORIZING THE DENTON AIRFAIR, INC. AND THE ASSOCIATION OF COMPETITION AIRSHOW PILOTS, AN ALABAMA L.L.C. ("ACAP") TO HOLD AN AIR FAIR AT THE DENTON MUNICIPAL AIRPORT ON MAY 20 AND 21, 2006; AUTHORIZING THE CONCESSION TO ACAP AND DENTON AIRFAIR, INC. TO SELL ALCOHOLIC BEVERAGES AT PLACES AND LOCATIONS DURING THE 2006 AIR FAIR EVENT; AMENDING CHAPTER 3 "AIRPORTS" OF THE CITY CODE TO ALLOW WAIVER OF OR SUBSTITUTION OF INSURANCE REQUIREMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton Airfair, Inc. as a cosponsor with the Association of Competition Airshow Pilots, an Alabama L.L.C. ("ACAP") desires to hold an Air Fair event at the Denton Municipal Airport ("Airport') on May 20 and 21, 2006; and WHEREAS, the Denton Airfair, Inc. and/or ACAP agree to fully comply with the requirements for holding airshows consistent with Chapter 3 "Airports" of the Denton City Code as amended hereby; and WHEREAS, ACAP has requested and the Airport Advisory Board has recommended that ACAP be granted the concession to sell alcoholic beverages at the Airport on the days and times indicated herein and approved by the City Manager; and WHEREAS, the City Manager recommends that Chapter 3 of the City Code be amended to allow the lowering of and the substitution of insurance requirements for airshows based on a recent survey of minimum requirements for airshow events to allow more flexibility in contracting with air fair sponsors and event coordinators; and WHEREAS, the City Council deems it in the public interest to approve the Denton Airfair, Inc. and ACAP to hold an airshow at the Denton Municipal Airport on May 20 and 21, 2006, to allow the sale of alcoholic beverages for the 2006 Denton Air Fair event and to change the minimum insurance requirements for airshow events and allow the City Manager to waive or substitute insurance requirements; 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 ACAP and the Denton Airfair, Inc. are hereby authorized to hold an airshow at the Denton Municipal Airport and to have a concession to sell alcohol at the Denton Airport for the 2006 Denton Air Fair on May 20 and 21, 2006 during these days and at the times and under the conditions approved by the City Manager or his designee thereto subject to the ACAP's and the Denton Airfair, Inc.'s compliance with all applicable local, state and federal laws, including without limitation, the Texas Alcoholic Beverages Code and upon the following additional conditions: y S:\Our Documents\0rdinances\06\Master Venue Agr-Denton Air Fairldoc 1. They shall provide security necessary for the sale of alcoholic beverages. 2. They shall provide general comprehensive liability insurance in the amount of $5,000,000 and additional insurance as required and approved by the City Manager or his designee and in compliance with applicable provisions of the City Code and all other applicable laws including the Texas Alcoholic Beverage Code and Chapter 3 of the City Code as hereby amended. 3. They shall obtain and pay for all licenses and permits required to conduct the 2006 Denton Air Fair and to sell alcoholic beverages at this event including those required by the Texas Alcoholic Beverage Commission and the City. 4. They shall agree to indemnify the City against any liability relating to the 2006 Denton Air Fair and the sale of alcoholic beverages at the event and name the City as an additional insured on all insurance policies. SECTION 3. Section 3-21 "Minimum insurance for airshow" of Chapter 3 "Airports" is hereby amended to read as follows: .Sec. 3-21. Minimum insurance for airshow. It shall be unlawful for any airshow to be conducted at the Denton Municipal Airport unless insurance coverage is maintained by the sponsor (co-sponsors) or promoter in the following minimum amounts: Airshow / airmeet liability.' Combined single limit bodily injury and property damage liability, $5,000,000.00 each occurrence. Different requirements for Airshow/airmeet liability insurance can be substituted if the City Manager, on the recommendation of the Risk Manager taking into consideration the scope of the airshow event, availability of insurance and other related factors, approves Airshow/airmeet liability insurance in different amounts and coverages. Provided, however, the minimum Airshow/airmeet liability insurance combined single limit bodily injury and property damage liability coverage shall never be less than $2,000,000 per each occurrence. The policies of insurance covering the sponsor/promoter as required in this section shall name as additional insureds the City, its officers, agents, employees, city council, commissions, boards and committees. In addition, such policy or policies of insurance shall be endorsed to provide that no material changes in coverage, including, but not limited to, cancellation, termination, nonrenewal or amendment, shall be made without thirty (30) days prior written notice to the City Manager or Airport Manager of the City. Sponsor/promoter shall maintain the required insurance with insurance companies authorized to do business in the State of Texas with an A.M. Best rating acceptable to the City Manager on recommendation of the Risk Manager. SECTION 4. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of Section 3 "Airports" of the Code of Ordinances shall remain in full force and effect. Page 2 of 3 y v SA0ur Documents\0rdmancesW6\Master Venue Ag-Denton Air Fair2.doc SECTION 5. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Z", BY: Page 3 of 3 Handout to Council 5/2/06 Item 4E ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 58.258 ACRES FROM NEIGBBRHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL 4 (NR-4) WITH AN OVERLAY DISTRICT LOCATED AT THE SOUTHWEST CORNER OF TEASLEY ROAD AND RYAN ROAD AND LEGALLY DESCRIBED AS TRACT 5 IN THE ELI PICKETT SURVEY, ABSTRACT NUMBER 1018, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z06-0006) WHEREAS, Wallace Creel of HIG Acquisitions, Ltd. initiated a change in zoning for approximately 58.258 acres of land particularly described in Exhibit "A", attached hereto and incorporated herein (the "property"), from Neighborhood Residential 2 (NR-2) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning district classification and use designation; and WHEREAS, on February 22, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended denial of the requested change in zoning; and WHEREAS, the City Council makes the following findings: a. The change in zoning, as further modified by the overlay district herein defined, is consistent with the Comprehensive Plan; and b. The overlay district herein defined will protect and enhance the Property and surrounding area which are distinct from lands and structures outside of the overlay district and the immediate neighborhood; and c. The regulations imposed in the overlay district serve important and substantial public interests by preserving the integrity of the neighborhood surrounding the overlay district; 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 as true. SECTION 2. The zoning district classifications and use designation of the Property is hereby changed from Neighborhood Residential 2 (NR-2) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning district and use designation, subject to the additional requirements of an overlay district (the "Overlay District") containing the following additional regulations: a. The overlay district shall be applicable to the property as described in the attached Exhibit A (property description), and Exhibits A, B and C are hereby incorporated by reference. b. The final plat shall dedicate sufficient right-of-way meeting the City's design criteria for a street providing direct access between Ryan Road and Creekdale (hereinafter referred to as the "north/south connector"), the final location and design section of which shall be defined on the final plat when approved. The north/south connector shall be sized and aligned to meet the traffic volumes/flow appropriate for the development as designed per the City's design criteria. c. The location, shape, size and dimensions of the Upland Habitat areas defined on Exhibits B (Conceptual Site Plan) and C (Upland Habitat Description) as "Upland Habitat 1" and "Upland Habitat 2" shall be preserved as therein defined, and serve as physical buffers between the property and the Lexington Park subdivision to the south, d. The location, shape, size and dimensions of the Upland Habitat area defined on Exhibits B (Conceptual Site Plan) and C (Upland Habitat Description) as "Upland Habitat 3" shall be preserved as therein defined; however the Planning Director, or designate, is hereby delegated the authority to approve minor amendments to the shape, configuration, dimensions and location of the boundary between the defined Upland Habitat 3 area and the right of way for the north/south connector street, as necessary to accommodate realignment of the north/south connector, but such minor amendments may not exceed 20 feet in any single direction. e. Residential lot lines and intersection locations depicted on Exhibit B are conceptual and subject to change, pending definition and approval in the final plat. SECTION 3. The City's official zoning map is amended to show the change in zoning district classification and use designation. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be 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 , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Exhibit A PROPERTY DESCRIPTION ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE ELI PICKETT SURVEY, ABSTRACT NUMBER 1018, DENTON COUNTY, TEXAS, AND BEING ALL OF A CALLED 58.103 ACRE TRACT DESCRIBED INA DEED TO RICHARD O. STEWART AND SUSANNE S_ STEWART, RECORDED IN COUNTY CLERK'S FILE NUMBER 01-128090, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOW: BEGINNING AT A FOUND M" IRON PIN AT THE SOUTHWEST CORNER OF SAID STEWART TRACT, THE NORTHWEST CORNER OF LEXINGTON PARK PHASE TWO, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET V, PAGE 889, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 00 DEGREES 55 MINUTES 30 SECONDS WEST WITH THE WEST LINE OF SAID STEWART TRACT, A DISTANCE OF 1117.89 FEET TO A FOUND IRON PIN AT THE NORTHWEST CORNER OF SAID STEWART TRACT AND THE SOUTHWEST CORNER OF A CALLED 22.982 ACRE TRACT, DESCRIBED IN A DEED TO RYAN ROAD JOINT VENTURE, RECORDED IN CLERK'S FILE NUMBER 01-14008 REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 88 DEGREES 55 MINUTES 03 SECONDS EAST WITH THE NORTH LINE OFA SAID STEWART TRACT AND THE SOUTH LINE OF SAID RYAN ROAD JOINT VENTURE TRACT, A DISTANCE OF 1029.62 FEET TO A FOUND IRON PIN AT THE SOUTHEAST CORNER OF SAID RYAN ROAD JOINT VENTURE TRACT AND THE SOUTHWEST CORNER OF HICKORY CREEK HEIGHTS ADDITION, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET N, PAGE 101, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 88 DEGREES 55 MINUTES 25 SECONDS EAST WITH THE NORTH LINE OF SAID STEWART TRACT AND THE SOUTH LINE OF SAID HICKORY CREEK HEIGHTS ADDITION, A DISTANCE OF 1299.25 FEET TO A FOUND IRON PIN AT THE NOR'T'HEAST CORNER OF SAID STEWART TRACT, THE SOUTHEAST CORNER OF SAID HICKORY CREEK HEIGHTS ADDITION, AND BEING ON THE WEST RIGHT-OF-WAY LINE OF F.M. HIGHWAY 2181; THENCE SOUTH 02 DEGREES 22 MINUTES 06 SECONDS EAST WITH THE EAST LINE OF SAID STEWART TRACT AND THE WEST LINE OF SAID F.M. HIGHWAY 2181, A DISTANCE OF 1048.98 FEET TO A viz INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED METROPLEX 1849 AT THE SOUTHEAST CORNER OF SAID STEWART TRACT AND THE NORTHEAST CORNER OF LEXINGTON PARK PHASE ONE, AN ADDITION TO THE CITY OF DENTON, RECORDED IN CABINET U, PAGE 734, PLAT RECORDS, DENTON COUNTY, TEXAS; THENCE SOUTH 87 DEGREES 14 MINUTES 19 SECONDS EAST WITH THE SOUTH LINE OF SAID STEWART TRACT, A DISTANCE OF 2356.49 FEET TO THE POINT-OF- BEGINNING, AND CONTAINING IN ALL 58.258 ACRES OF LAND. Exhibit B CONCEPTUAL SITE PLAN Anal 44 1. 'T= 1 ,w . n •r v {phi. W"`. a 7,06-0006 Subject Site 112JA ~ y } 15 _ I ' Stye Ll_. w . . j{ l~ F7.- tTA * Residential lot lines and intersection locations are conceptual and subject to and approved in the final plat process. Exhibit C Upland Habitat Description <T E°i LAS r.{ ~ r 3 t. 4, LJ 7 24' .v ry#. ,AW .`•`Y°t"y' fi'r' .3 - - ~ ilk (r L~ ~t )Fp C~ l1 r 'lt. _~..i Exhibit C Upland Habitat 1 r aA1 4 : T .~n Exhibit C Upland Habitat 2 { - 1. A. J a w t~ S X RAG f Exhibit C Upland Habitat 3 CL ti uj ~n a 'nY