HomeMy WebLinkAboutOctober 3, 2006 Agenda
AGENDA
CITY OF DENTON CITY COUNCIL
October 3, 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, October 3, 2006 at 4:30 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 direction regarding the CIP Oversight
Committee's recommendations. (approximately 10 minutes)
2. Receive a report, hold a discussion and give staff direction on the annexation of land in
the northwestern area of the City of Denton's extraterritorial jurisdiction generally located
to the north of Loop 288, west of Locust Street (F.M. 2164), south of Milam Road and
east of Bonnie Brae Street; which may include without limitation an approximate 1199
acres tracts owned by Denton 288 LP. (A 06-0005, Hills of Denton) (approximately 15
minutes)
3. Receive a report, hold a discussion and give staff direction related to abandoned trash and
debris at the curb of vacant properties. (approximately 15 minutes)
4. Requests for clarification of consent agenda items listed on the consent agenda for today's
City Council regular meeting of October 3,2006. (approximately 15 minutes)
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. Legal advice concerning land use legal issues including multi-
family, fair housing, vested rights, development exactions,
annexations, and takings issues.
2. 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, zoning, land use
and subdivision controls, plat applications, annexation plans,
development agreements, annexation agreements, service plans,
utility service, and legal issues relating to the creation of special
districts in the ETJ requested by JNC and White Cake Denton, L.P.
A public discussion of these legal matters would conflict with the
City of Denton City Council Agenda
October 3, 2006
Page 2
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 9551.086 OF THE TEXAS GOVERNMENT CODE (THE 'PUBLIC POWER
EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED
MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, 9551.001, ET
SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA
OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED
MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS
ACT, INCLUDING, WITHOUT LIMITATION 9551.071-551.086 OF THE TEXAS OPEN MEETINGS
ACT.
Regular Meeting of the City of Denton City Council on Tuesday, October 3,2006 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 - C). 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 - C 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
October 3, 2006
Page 3
A. Consider approval of tax refunds for the following property taxes:
Name Reason Tax Amount
Year
1. Coe, Edwin & AllysonlParker, DCAD Supplemental 2005 $2,256.40
Charles & Kathryn Change
2. Coe, Edwin & AllysonlParker, DCAD Supplemental 2004 $2,238.02
Charles & Kathryn Change
3. Parker, Charles & Kathryn DCAD Supplemental 2003 $2,088.52
Change
4. Coe, Edwin & AllysonlParker, DCAD Supplemental 2002 $2,015.73
Charles & Kathryn Change
5. Chase Home Finance/Ghaffari, Duplicate Payment 2005 $ 903.28
Hakimeh
6. Daugherty Homes Inc Overpayment 2005 $ 666.19
B. Consider approval of a resolution of the City of Denton, Texas, adopting the City
of Denton's 2007 State Legislative Program for the 80th Texas Legislature;
providing a repealer; and providing an effective date.
C. Consider adoption of an ordinance of the City of Denton, Texas approving a lease
amendment between the City of Denton and FMP Denton, L.P., for the City Hall
in the Golden Triangle Mall; authorizing the expenditure of funds therefor; and
providing an effective date. The Public Utilities Board recommends approval
( 6-0).
4. ITEMS FOR INDIVIDUAL CONSIDERATION
A. Consider adoption of an ordinance of the City of Denton, Texas authorizing the
City Manager to execute an agreement between the City and Fred Moore Day
Nursery School to provide for improvements to the childcare facility at 821
Crosstimber Street, Denton, TX 76205; authorizing the expenditure of funds
therefore, not to exceed $195,000; and providing for an effective date
B. Consider adoption of an ordinance of the City Council of the City of Denton,
Texas approving an agreement between the City of Denton and the Denton
Affordable Housing Corporation; providing for the terms of said contract,
authorizing the City Manager to execute the agreement and to expend funds with
respect to the agreement; not to exceed $140,000; and providing for an effective
date.
C. Consider adoption of an ordinance amending Ordinance No. 2006-232 concerning
amendments to the City Charter to correct a typographical error; providing a
severability clause, providing an open meetings clause, and providing an effective
date.
D. Citizen Reports
1. Review of procedures for addressing the City Council.
2. Receive citizen reports from the following:
City of Denton City Council Agenda
October 3, 2006
Page 4
A. Robert Donnelly regarding city business.
B. Bob Clifton regarding Denton Municipal Electric.
E. New Business
This item provides a section for Council Members to suggest items for future
agendas or to request information from the City Manager.
F. Items from the City Manager
1. Notification of upcoming meetings and/or conferences.
2. Clarification of items on the agenda.
3. Response to past citizen inquiries.
G. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the
Texas Open Meetings Act.
H. 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:
October 3, 2006
DEP ARTMENT:
Utility and CIP Engineering
Howard Martin, 8232 ..
ICM:
SUBJECT
Receive a report, hold a discussion, and gIve staff direction regarding the CIP Oversight
Committee's recommendations.
BACKGROUND
The CIP Oversight Committee held five meetings this year, receiving reports from staff on
project status and developing a user-friendly tracking and monitoring for the CIP projects.
During a five-year CIP, the timing of some projects may need to be adjusted to correspond with
other infrastructure improvements. Staff was directed to explore options on how to augment CIP
funding to allow for the completion of the approved CIP projects. Staff is proposing making
various changes to the current 5-year CIP in order to coordinate with various utility activities.
OPTIONS
Approve changes recommended by staff.
Approve but with alternative changes to the CIP.
Do not approve.
RECOMMENDATION
The CIP Oversight Committee recommends the following changes to the current 5-year CIP
schedule:
1. Use Economic Development Funds for the 1-35 Service Road repaving project associated
with the Granite Properties project.
2. Use of Miscellaneous Road Improvement money for the Duncan Street Project.
3. To continue to pursue agreements with TxDOT for sole-source funding and improvements to
U.S. Hwy. 377.
4. That available saving on projects and Denton County Interlocal funding is diverted to
compensate for shortfalls on Shady Oaks Drive, Brinker Road and Hickory Creed Road.
5. That staff proceed with the hiring of a consultant for survey and schematic preparation on
Mayhill Road upon approval of the revised route for this road on the Mobility Plan by City
Council. ROW acquisition and final design services for this roadway should be delayed until
spring 2007 in anticipate of revenue from Hwy. 121 tolling.
6.
PRIOR ACTION/REVIEW (Council.. Boards.. Commissions)
The Chair of the CIP Oversight Committee made an initial update to Council on June 29, 2006.
This update provides information and recommendations from the September 7, 2006 CIP
Oversight Committee meeting.
Agenda Information Sheet
October 3, 2006
Page 2 of2
EXHIBITS
1. Minutes from September 7, 2006 CIP Oversight Committee meeting
2. Agenda Item 3 from September 7,2006 CIP Oversight Committee meeting.
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Jim Coulter
Director Water/Wastewater Utilities
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DRAFT MINUTES
CITIZENS ADVISORY OVERSIGHT COMMITTEE
Thursday, September 7,2006
After determining that a quorum of the Citizens Advisory Oversight Committee of the City of
Denton, Texas was present, the Chair of the Citizens Advisory Oversight Committee convened
into an Open Meeting on September 7,2006 at 1 :39 p.m. in the City Council Work: Session
room, 215 E. McKinney Street, Denton, Texas.
Present:
Chair Mark: Burroughs, Roni Beasley, Polly Diebel and Rick: Woolfolk:
Absent:
Randy Robinson
Ex Officio Member:
Jim Coulter, Director Water Wastewater Utilities
Staff:
Frank: Payne, City Engineer, Mark: Nelson, Chief Transportation Officer, Gary
Calmes, Utilities Finance Administration, and Ann Forsythe, Secretary
1) Consider approval of the Citizens Advisory Oversight Committee minutes of:
a. May 11,2006
The minutes were approved as circulated.
2) Receive a report and consider a Reimbursement Resolution regarding the reconstruction of
the 1-35 service road in association with the Granite Properties 380 Agreement.
Jim Coulter stated that initially it was thought that a reimbursement resolution and the selling of
additional bonds in the spring would be the best way to fund this project. Staff now has two
options they would lik:e the Committee to consider. Currently, there is $220,000 available in
Miscellaneous Road Improvements CIP bond money from the current fiscal year; or, as
previously discussed, money is available from Economic Development funds used to build
Metro Street
Frank: Payne, City Engineer, reported that staff originally thought that TxDOT would fund the
upgrade of the service road, which technically was a road that has provided access to land lock:ed
property to the south, through their maintenance funds. However, TxDOT's maintenance funds
are already allocated through 2010. Granite Properties now owns the property and TXDOT has
no plans to improve the road as an on-ramp for IH35W.
An estimate for the repair/rehabilitation of the service road was solicited from Jagoe-Public
through its annual contract with the City for asphalt paving. The estimate received for the
project was in the amount of $112,840.50, with additional amounts necessary to cover surveying,
engineering and inspections. Staff has been talk:ing with the County about various projects and
has prepared an Interlocal Agreement to assist with funding them, some of which could be used
for this project. Another possibility for funding would be the use of Certificates of Obligation
Exhibit 1
1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 2 of7
4
5
6 (CO's) from economic development funds approved for use with the Metro Street project. More
7 than enough money remains in that fund to pay for either an overlay or complete rebuild of the
8 service road.
9
1 0 Staff would now ask: the Committee to consider the use of those Economic Development funds
11 for this proj ect.
12
13 Burroughs ask:ed if monies were set aside for projects and, if for some reason they could not be
14 utilized, was there a list of transportation projects where that money could be utilized quickJy.
15 Payne replied there was money, and that currently there was a project on Duncan Street where
16 CDBG funding was inadequate and utilizing this k:ind of money would go toward completing
17 these k:inds of projects.
18
19 The Committee concurred with staff's recommendation to use Economic Development
20 funds instead of Miscellaneous Bond Funds for the service road reconstruction.
21
22 The Committee also recommended the Duncan Street project for the expenditure of the
23 Miscellaneous Road Improvements money, but directed that any alternative or future
24 choices for road projects should be brought back for Committee review and
25 recommendation.
26
27 3) Receive a status update on transportation projects associated with the Five-Year Capital
28 Improvement Program.
29
30 Coulter stated that this item was slated in response to a request from the Chair for a report on the
31 status of projects affected by last year's economic climate. Coulter stated that in the time since
32 our last meeting, there have been some decent bids, oil prices are dropping, hurricanes are not an
33 issue so far this year, and staff is starting to have a little less pessimistic view concerning
34 completion of projects.
35
36 Frank: Payne then provided a status update on the following active projects for the budget year:
37
38 Mayhill Road - Staff is work:ing with the revised realignment of Mayhill Road to get it through
39 the Mobility Committee and then through P&Z and Council for approval. Staffthink:s next
40 Tuesday night at CC a route will be approved.
41
42 Shady Oak:s and Brink:er - This is moving forward as a single design project with funding
43 approved for design with construction projected to begin in the summer of2007 with a one year
44 projected timeframe for completion. Because of price concerns, staffhas instructed the
45 consultant to fully design the project but to bid it with an option for either two-lanes or four-
46 lanes of construction depending on affordability.
47
48 The Chair ask:ed if this area should develop in the future, could it possibly be considered for an
49 agreement similar to the 380 Agreement in order to have tax increases help fund the shortfalls.
1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 3 of7
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6 Payne replied it could be a possibility, but that no one had come forward stating they were going
7 to develop that area. Until such time as a development comes forward with a request for platting
8 and a cooperative agreement, this type of funding is not really an option.
9
10 Hobson Lane Intersection Improvement at F.M. 1830 and U.s. Hwy 377 - Staffhas met with the
11 TxDOT local office, which was receptive to the idea of doing the widening ofHwy. 377, the
12 bridge project and the intersection job all as a single project funded by TxDOT with the City
13 paying only for environmental clearances (thought to be between $100,000 and $200,000).
14 TxDOT had indicated that it would send a letter about funding availability, which has not been
15 received at this time.
16
17 Western Boulevard - A contract was awarded on March 21,2006 to Teague Nail & Perk:ins for
18 the design of this proj ect. Design is underway and there is a proj ected beginning construction
19 date of spring/summer 2007. It is thought that the construction period will be no more than one
20 year. At this time, not all of the right-of-way has been dedicated; however, staff met with Razor
21 Properties and a developer of its choice, to suggest alternatives for the road alignment, one of
22 which was selected. Staff is now waiting for the execution of ROW dedication documents.
23
24 Payne next provided an update on funding considerations, which continues to be a major
25 concern.
26
27 Mayhill Road - $500,000 was approved for engineering and right-of-way acquisition to get the
28 project rolling. The "Mayhill Road Route Study" report by Teague Nail & Perk:ins in February
29 2006 projected the total cost of construction at approximately $25 million, which included a
30 revised alignment up through Bridges Street to Morse (it is not thought that this pricing will be
31 significantly different than the current recommended route). In addition to the $25 million
32 projected for construction, engineering fees are projected at approximately $2 million, which
33 includes environmental clearances, permitting modeling and geotechnical investigations, and
34 right-of-way acquisition is projected at $9 million. The City is talk:ing with TXDOT about this
35 being tak:en forward as a metropolitan highway project. TxDOT funds such projects at a 90/10
36 share, which would put the City's share at about $2.5 million. This puts the City's total
37 projected outlay at $13.5+/- million. Unless the City receives significant revenue from the
38 tolling of S.H. 121, it appears that another bond election would be required before construction
39 could start on this project.
40
41 Shady Oak: Drive at Brink:er Road - Again these projects are being treated as a single design and
42 construction project with a projected construction cost of approximately $4.6 million. The total
43 funding available for this project is $4.26 million. Freese & Nichols design contract with the
44 City was approved in an amount of$381,583.00. ROW for the project through the American
45 Legion tract could cost as much as $900,000.00 or more. The total projected outlay for full
46 construction of these two projects is approximately $6.0 million at this time. If construction is
47 scaled back: to 2 lanes only for each roadway and other cost-cutting measures are pursued, the
48 project costs might be reduced by as much as $750,000 to $1 million. However, this would not
49
1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 4 of7
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6 be the road we initially thought we'd have, and even if we scale back:, the shortage will still be
7 about $1 million.
8
9 Beasley stated she was reluctant to scale it back: to 2 lanes because she believed that area needs
1 0 the additional lanes.
11
12 Payne replied that if two lanes are built now, when that area is developed, the developer will
13 have to increase it to 4 lanes, depending on traffic loading and the agreements reached upon
14 ROW dedication.
15
16 Hobson Lane Intersection Improvements at F.M. 1830 and u.s. Hwy. 377 and u.s. Hwy 377
17 Bridge at Union Pacific Railroad - Engineering and ROW acquisition in the amount of
18 $100,000.00 and construction in the amount of$I,100,000.00 was budgeted in FY2004-FY2005
19 for the Hobson Lane Intersection Improvements. Engineering and ROW acquisition in the
20 amount of $220,000.00 and construction in the amount of$I,780,000.00 was budgeted in
21 FY2007-FY2008 for the U.S. Hwy. 377-railroad bridge project. An approximate amount of
22 $1.37 million dollars remains in existing bond funds for the bridge project. As discussed,
23 funding of all U.S. Hwy. 377 improvements, including this intersection and bridge, are being
24 pursued through TxDOT. It is staffs understanding that the City will be responsible for paying
25 for the environmental studies required to clear the ROW for the entire project, which could cost
26 between $100,000.00 and $200,000.00. The total amount available from both the intersection
27 and bridge projects is approximately $4.57 million dollars. If the total outlay from the City can
28 indeed be limited to existing expenditures plus funding of the overall environmental study for the
29 project limits, it may be possible for the City to reprogram upwards of $4.37 million dollars of
30 the remaining money into other bond projects.
31
32 Western Boulevard - Engineering and ROW acquisition for this project is to be paid from
33 existing bond funds allocated for this project in the amount of approximately $780,000.00.
34 Construction funding for this project was budgeted in the amount of $3,640,000.00 in FY2005-
35 FY2006. Total project budget is $4.42 million dollars. Teague Nail and Perk:ins has projected a
36 probable construction cost at approximately $3.90 million dollars. Teague Nail and Perk:ins'
37 professional services fee for the project was approved at $381,825.00. Total project expenditures
38 are currently estimated to be $4,281,825.00 plus inspections, testing and other staff time. It
39 appears that this project is adequately funded at this time based on these numbers.
40
41 Payne next provided updated information on the following existing projects:
42
43 Vintage Boulevard - The Vintage Park:way Paving Improvements project was funded in 2003 as
44 part of the Capital Improvements Program for the purpose of constructing an extension of
45 Vintage Boulevard Park:way from Bonnie Brae Street to U.S. Highway 377. A total of$I.90
46 million dollars was budgeted for the project, of which approximately $1.33 million dollars has
47 been expended to date for engineering, ROW acquisition, survey, construction of the at-grade
48 crossing of the railroad by Union Pacific Railroad (UPRR), testing of materials, and construction
49
1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 5 of7
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6 of site grading and sub grade preparation. Approximately $0.57 million remains from the
7 original funding. A total of $1.60 million dollars was appropriated in this fiscal year through the
8 sale of certificates of obligation. Bids were received on June 15,2006 for the construction of
9 Vintage Boulevard from Bonnie Brae to U.S. Hwy. 377, with a low bid in the amount of
10 $1,314,007.25, which was subsequently awarded to Jagoe-Public Company at the City Council
11 meeting on July 18, 2006. It is projected that an additional amount of just over $700,000.00 will
12 be required to fully complete the proj ect. It would cover such items as construction of the
13 connector road to existing Vintage Boulevard on the west side of Bonnie Brae, TxDOT
14 mandated changes at U.S. Hwy. 377 (permit comments were not received until after bids were
15 already received), fencing contracts across affected properties, additional consultant fees for
16 permitting through FEMA, construction materials testing, and other miscellaneous items. Total
17 projected expenditures for completion, including construction costs and additional projected
18 costs, will be approximately $2.10 million dollars. Total available funds for completion,
19 including remaining bond funds
20 and additional appropriated monies, is approximately $2.17 million dollars. It appears that this
21 project is adequately funded at this time based on these numbers.
22
23 Hick:ory Creek: Road - The Hick:ory Creek: Road project was funded in 2000 as part of the
24 Capital Improvements Program for the purpose of constructing a widening of existing Hick:ory
25 Creek: Road to a 4-lane divided section from F .M. 2181 (Teasley Lane) to Riverpass Drive. A
26 total of$2.25 million dollars was budgeted for the project, of which $1.50 million dollars was
27 provided through an agreement with Denton County. A total of approximately $0.51 million
28 dollars has been expended to date on ROW acquisition and engineering, leaving a balance of
29 approximately $1.74 million dollars, some of which will be needed to wrap up the plans, bid the
30 project, and provide for materials testing and inspection. The consultant, Teague Nail and
31 Perk:ins, produced a revised opinion of probable construction cost of approximately $3.20 million
32 dollars in early 2005, prior to the massive inflationary trends seen beginning in the fall of2005.
33 If an inflationary amount of up to 35% is applied to the estimate previously prepared, the total
34 needed for construction alone is almost $4.32 million dollars, or $2.58 million dollars more than
35 is currently available in the project budget (could be more or less depending on actual
36 inflationary amounts and remaining expenditures).
37
38 In summary, the design alone of Mayhill Road appears to be under funded by as much as $1.5
39 million dollars; however, progressing a roadway design project through 100% completion
40 without ROW acquisition (projected at $9.0 million dollars) would not be prudent. The total
41 projected shortfall for Shady Oak:s Drive and Brink:er Road is at least $1 million dollars. The
42 total projected shortfall for Hick:ory Creek: Road is upwards of $2.58 million dollars.
43
44 On the positive side, if staff is able to negotiate the funding of all U.S. Hwy. 377 improvements
45 through TxDOT, a possible funding surplus of as much as $4.37 million dollars may be realized
46 from the bridge and intersection projects. Denton County has made $1.25 million dollars
47 available for use at the City's discretion from funds previously allocated to Lak:eview Boulevard
48 with the potential to garner an additional $1.2 million dollars set aside by the County
49 Commissioner Jim Carter for improvements to F.M. 1830. In addition, Innovative
1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 6 of7
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6 Transportation Systems, Inc., the City's regional transportation consultant, is projecting massive
7 revenues available to all of the entities in Denton County (TxDOT, County, etc.) through the
8 tolling ofHwy. 121.
9
10 Beasley ask:ed if staff was noticing any easing on construction costs. Coulter replied that electric
11 was struggling with copper wiring, but that over the past month, had seen a 30% drop in one
12 basic wire size. Coulter also stated that staff was seeing some drop in bids, specifically on
13 Vintage Blvd. That bid was reasonable and did not it cause staff concern with completing that
14 proj ect.
15
16 Staffs recommendation was:
17 1. To continue to pursue agreements with TxDOT for sole-source funding and improvements to
18 u.S. Hwy. 377.
19 2. That available savings on projects and Denton County interlocal funding be diverted to
20 compensate for shortfalls on Shady Oak:s Drive, Brink:er Road and Hick:ory Creek: Road.
21 3. That staff proceed with the hiring of a consultant for survey and schematic preparation on
22 Mayhill Road upon approval of the revised route for this road on the Mobility Plan by City
23 Council. ROW acquisition and final design services for this roadway should be delayed until
24 spring 2007 in anticipation of revenue from Hwy. 121 tolling.
25
26 Chair Burroughs asked for a motion to recommend. Beasley moved to recommend
27 approval with a second from Rick Woolfolk. The motion was approved by a vote of 4-0.
28
29 4) ICM Update:
30
31 a. CIP Reporting as of July 31, 2006
32
33 Beasley inquired about the progress of renovations at the South Branch Library. Coulter stated
34 that geotechnical work: was being done and once that information is completed, the design work:
35 will begin.
36
37 Woolfolk: inquired as to why the airport terminal project, which was part of the CIP process, was
38 not brought to the Committee before going to the City Council.
39
40 Coulter replied that he believed it had to do with it being a CO as opposed to a GO. If the
41 Committee would lik:e, staff could go back: and tak:e a look: at that. There are a lot of CO projects
42 that are out there, some of them larger than others.
43
44 Woolfolk: stated that he believed the Committee should consider some of the bigger projects,
45 such as Fire Station #7, which are really going to be visible in the community. He thought that it
46 might help staff to have another ally when going to the Council.
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1 Draft Minutes - Citizens Advisory Oversight Committee
2 September 7, 2006
3 Page 7 of7
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6 Burroughs stated that he thought the Committee had interplay between GO and CO funds and
7 that part of the Committee's charge was to go review and determine which ones were best for
8 whatever reasons. That a lot of it had to do with what is funded with what. Also, a number of
9 CO projects are listed and he thought the Committee could be of assistance in trying to work:
1 0 through some of the public side of the proj ects. He believed that was a purpose of an oversight
11 committee.
12
13 Burroughs further stated that if there were funding questions, especially shortfalls or some new
14 unforeseen circumstance, the Committee had discretionary funds which it could use to help
15 overcome any unforeseen. It can mak:e a recommendation and is a resource that need not be
16 overlook:ed.
17
18 5) New Business: This provides an item for the Citizens Advisory Oversight Committee to
19 suggest items for future agendas or to request information from the City Manager.
20
21 Woolfolk: ask:ed about who would be mak:ing a report to the City Council and when it would be
22 made.
23
24 Chair Burroughs stated he had made a report to the City Council and that it had gone well
25 considering it was somewhat of a shak:e up report to let them lrnow there were going to be over
26 runs, and to also let the public lrnow.
27
28 Chair Burroughs will mak:e the next report and Woolfolk: volunteered to mak:e the next one.
29
30 Woolfolk: thought it was time to begin think:ing about another Citizens Bond Committee.
31 Chair Burroughs stated that was a good idea and could staff provide a report on bonds allocated
32 having to do with projected sales tax revenue and that status of income from those bonds.
33
34 Action Items:
35
36 1. Provide an update on sales and issues associated with bond pack:ages.
37
38 2. Discuss the need and time for the next citizens bond committee.
39
40 3. Next meeting date for the Committee will be early December.
41
42 The meeting was adjourned by consensus at 2:58 p.m.
CITIZENS ADVISOY OVERSIGHT COMMITTEE
AGENDA INFORMATION SHEET
AGENDA DATE: September 7,2006
DEPARTMENT: Utilities Administration
eM: Howard Martin, 349-8232 _
SUBJECT
Receive a status update on transportation projects associated with the Five- Year Capital
Improvement Program.
BACKGROUND
Overall Status
The bond election held in February 2005 approved a slate of projects for the Five- Year Capital
Improvement Program (CIP) for General Government. The Utility and CIP Engineering division
of Water Utilities is responsible for the planning and execution of the street and intersection
(transportation) and sidewalk projects associated with this CIP. The shortened nature of the
FY2004-FY2005 fiscal year together with the "holding pattern" implemented at that time in
anticipation of the possible receipt of funding through the North Central Texas Council of
Governments (NCTCOG) Partnership Program III Arterial Streets and Arterial Intersection
Projects program resulted in a delay of bond project progress.
Successful funding through the NCTCOG Program III Projects was not achieved. Considering
that fact and the rising cost of fuel and construction, the CIP Oversight Committee has advised
City Council that the CIP program may have to be restructured to ensure that the most critical
proj ects are funded.
The following listing provides a status update on active projects per budget year:
1. FY2004-FY2005
Fiscal year 2004 to 2005 would normally have started in October 2004; however, bond funds
for this fiscal year did not become available for use until after the election. The effective
period of the fiscal year was foreshortened to approximately 3 months, making meaningful
progress during the initial fiscal year difficult to achieve. The following projects are in
various stages of production:
A. Mayhill Road - Funding was approved for design and ROW acquisition only for this
particular project. The consultant originally hired to perform the alignment study for
widening Mayhill Road in 2002, Teague Nail and Perkins, was retained to update the
EXHIBIT 2
AIS - CIP Oversight Committee Agenda Item #3
September 7, 2006
Page 2 of8
study to reflect possible changes to the mobility plan (shifting the alignment to the west
north of the Colorado/State School intersection up to Spencer or Morse streets) as well as
platting changes to the affected area in the period of time since the original study was
prepared. Following the receipt of the updated schematic, a proposed change to the
Mobility Plan was carried forward to the Mobility Committee for approval in January
2006. The Mobility Committee endorsed the revised route. Staff then carried the
Mobility Plan Amendments to the public for feedback, and returned to the Mobility
Committee with recommended modifications. The route recommended by staff and
endorsed by the Mobility Committee is shown on the proposed Mobility Plan
amendments included herein as Exhibit 1. This exhibit was presented in a Public Hearing
at the Planning and Zoning Commission on August 23,2006 and was approved
unanimously. The revised Mobility Plan is scheduled for consideration by City Council
at the September 12, 2006 meeting. Requests for Qualifications (RFQs) for the design of
this project will be issued to various engineering consultants after confirmation of a route
with a goal of having an approved Professional Services Agreement (PSA) executed with
a consultant shortly thereafter. The Utility and CIP Engineering group along with
Innovative Transportation Solutions (ITS) intends to pursue funding of the construction
phase of this project through the Texas Department of Transportation (TxDOT) under the
municipal highway classification. Requirements or restrictions on the reimbursement of
funds associated with this type of funding may protract the length of time necessary to
place a consultant under contract.
B. Shady Oaks Drive - Funding was provided for the design of this project in this fiscal
year. The Utility and CIP Engineering group prepared a schematic design of the
roadway. A proposal for the design of this roadway was solicited from Freese and
Nichols, Inc., and a professional services agreement was approved at City Council on
July 18,2006. Design is underway, and construction is projected to begin in the summer
of2007 with a one year projected timeframe for completion.
C. Brinker Road - Funding was provided for the design and construction of this project in
this fiscal year. The Utility and CIP Engineering group prepared a schematic design of
the roadway. A proposal for the design of this roadway was solicited from Freese and
Nichols, Inc., and a professional services agreement was approved at City Council on
July 18,2006. Design is underway, and construction is projected to begin in the summer
of2007 with a one year projected timeframe for completion.
D. Hobson Lane Intersection Improvements at F.M. 1830 and U.S. Hwy 377 - This project
was funded for design initiation and construction in this fiscal year. TxDOT is planning
improvements to U.S. Hwy 377 that may complement or duplicate the efforts associated
with this project. Funding assistance was applied for through the NCTCOG Partnership
Program III process; therefore, detailed design efforts on the project were delayed until
the results of the grant application process could be determined in order to avoid the loss
of funds by spending them prematurely or prior to a better understanding of the scope and
AIS - CIP Oversight Committee Agenda Item #3
September 7, 2006
Page 3 of8
possible benefits of the planned TxDOT widening of U.S. Hwy. 377 project. In late
February 2006, staff found out that funding through the NCTCOG Partnership Program
III process was unsuccessful. Staff is exploring alternatives with the assistance of ITS to
fund the entire widening of U.S. Hwy. 377, the widening of the Union Pacific Railroad
(UPRR) Bridge over U.S. Hwy. 377 and the improvements to this intersection as a single
project through TxDOT, possibly freeing these funds for use on other projects. TxDOT
has been receptive to this strategy.
E. Western Boulevard - The ROW for this project has been established for the most part,
other than some adjustments in the southern reach of the project between F.M. 1515 and
Jim Christal Road with respect to possible adjustments requested by potential developers
of the property. Staff has been meeting with the representatives for the landowner and
potential developers in order to achieve a definitive alignment through this stretch of the
roadway. The firm of Teague Nail and Perkins was awarded a contract for the design of
the project at the City Council meeting held on March 21,2006. Design is underway,
and construction is projected to begin in the summer of2007 with a one year projected
timeframe for completion.
F. U.S. Hwy. 377 Bridge at Union Pacific Railroad -This project was previously budgeted
with GO bonds in 2002 at approximately $1.0 million dollars with matching money from
Denton County in the amount of$930,000.00, of which approximately $1,372,778.00
remains. Project design is nearing completion; however, projected construction costs of
approximately $6.0 million dollars for the bridge still indicates that a budget shortfall
exists for this proj ect. As discussed herein, staff is pursuing the funding of this proj ect,
the intersection improvements at U.S. Hwy. 377 and F.M. 1830 and the widening of U.S.
Hwy. 377 all as a single project through TxDOT in exchange for the City of Denton
performing the full environmental assessments for the U.S. Hwy. 377 widening and
bridge.
2. FY2005-FY2006
Fiscal year 2005 to 2006 began on October 1,2005; however, funds for use on the projects
approved in this particular fiscal year did not become available until July of 2006. As
discussed for FY2004-FY2005, staff was hesitant to aggressively program these projects
forward prior to receiving notification of the results of the success of the funding applications
for them through the NCTCOG partnership program. The following projects are slated for
production in FY2005-FY2006:
A. Shady Oaks Drive/Brinker Road - Construction funding was provided for the Shady Oaks
project in this fiscal year. Both projects are being handled as a single construction
contract at this time, although this approach could be modified in the future if project
specific issues develop for either roadway (permitting issues, affordability, ROW, etc.).
Inasmuch as the construction of these projects will likely not actually start until mid
2007, bond sales for the construction phase of Shady Oaks were postponed until FY2006-
AIS - CIP Oversight Committee Agenda Item #3
September 7, 2006
Page 4 of8
FY2007. The ability to initiate the construction of this project in the scheduled year will
depend on the availability of funding for these and other bond projects and the continuing
trends in fuel prices and project bidding.
B. Western Boulevard - Construction funding was provided for this project in this fiscal
year. Inasmuch as the construction of this project is not likely to begin until mid 2007,
bond sales for the construction phase of Western Boulevard were postponed until
FY2006-FY2007. The ability to initiate the construction of this project in the scheduled
year will depend on the availability of funding for this and other bond projects and the
continuing trends in fuel prices and project bidding.
Financial Considerations
Funding considerations for transportation projects continue to be a major concern. Bidding
fluctuations associated with the hurricanes from last year together with rising fuel costs have
produced a climate of uncertainty and inflation in estimating and actual pricing that continues
today. The CIP Oversight Committee warned City Council that projects slated for initiation in
the various years of the bond program may have to be revised in scope, delayed or even cut in
order to ensure the affordability of remaining projects. The following listing provides funded
project levels, projected project costs and other funding considerations for various transportation
projects.
Projects From the January 2005 Bond Election
A. Mayhill Road - Engineering and ROW acquisition for this project were budgeted in the
amount of$500,000.00 in FY2004-FY2005. The "Mayhill Road Route Study" report
prepared by Teague Nail and Perkins in February 2006 listed a preliminary opinion of
probable construction cost for this project at approximately $25.0 million dollars.
Engineering fees are expected to be as much as $2.0 million dollars, which would include
allowances for environmental clearances, permitting, modeling and geotechnical
investigations. As discussed, funding through TxDOT will be pursued by the
classification of Mayhill Road as a municipal highway. ROW acquisition was projected
in the route study report to cost as much as $9.0 million dollars, of which the City would
be responsible for 100% of the costs under this program. With a 90/10 split with the State
on construction costs, the City's total outlay projected at this time is approximately $13.5
million dollars for this project. At this point, financial participation by the County and/or
additional "cost recovery" or funding as a result ofHwy. 121 tolling are an unknown.
Available funding from the bond election for this project is thought to be sufficient to
cover the costs for environmental studies, survey and schematic preparations. TxDOT
typically prefers to produce their own environmental studies for on-system projects, so
this work may actually be performed by consultants retained by the State.
B. Shady Oaks Drive and Brinker Road - Engineering and ROW acquisition in the amount of
$350,000.00 in FY2004-FY2005 and construction in the amount of $2,200,000.00 in
AIS - CIP Advisory Committee Agenda Item #3
September 7, 2006
Page 5 of8
FY2006-FY2007 were budgeted for Shady Oaks Drive. Engineering and ROW acquisition
in the amount of $200,000.00 and construction in the amount of $710,000.00 were
budgeted in FY2004-FY2005 for Brinker Road. Denton County has committed to
providing a total of $800,000.00 for the construction of Brinker Road through an interlocal
agreement. These projects are being treated as a single design project at this time. Total
funding for both projects is therefore $4,260,000.00. Freese and Nichols has projected a
preliminary opinion of probable construction cost for this project of approximately $4.6
million dollars. The total fee associated with Freese and Nichols' professional services
agreement is $381,583.00. ROW has been donated for Shady Oaks Drive and the northern
portion of Brinker Road; however, the section of ROW across the American Legion tract
on Spencer Road will have to be purchased. ROW for Spencer Road across this same
tract was purchased several years ago for approximately $6.00 per square foot (SF). The
needed ROW across the tract for Brinker Road is almost 150,000 SF, so using $6.00/SF as
a possible cost for the ROW, the use of this property could cost as much as $900,000.00 or
more. If these costs are valid, total project costs for constructing both Shady Oaks Drive
and Brinker Road as 4-lane secondary arterials is projected to approach $6.0 million
dollars at this time. If construction is scaled back to two lanes only for each roadway and
other cost-cutting measures are pursued, the project costs may be able to be reduced by as
much as $750,000.00 to $1,000,000.00. The consultant has been instructed to set up
bidding documents with alternates for 2-lane and 4-lane construction. If the listed
potential savings are realized, the total projected shortfall for these two projects is as much
as $1.0 million dollars.
c. Hobson Lane Intersection Improvements at F.M. 1830 and u.S. Hwy. 377 and u.S. Hwy.
377 Bridge at Union Pacific Railroad - Engineering and ROW acquisition in the amount
of$100,000.00 and construction in the amount of$I,100,000.00 were budgeted in
FY2004-FY2005 for the Hobson Lane Intersection Improvements. Engineering and ROW
acquisition in the amount of $220,000.00 and construction in the amount of $1,780,000.00
were budgeted in FY2007-FY2008 for the bridge project. A total of approximately $1.37
million dollars remain from existing bond funds for the bridge project. As discussed,
funding of all u.S. Hwy. 377 improvements, including this intersection and bridge, is
being pursued through TxDOT. It is staffs understanding that the City will then be
responsible for paying for the environmental studies required to clear the ROW for the
entire project, which could cost between $100,000.00 to $200,000.00. The total amount
available from both the intersection and bridge projects is approximately $4.57 million
dollars. If the total outlay from the City can indeed be limited to existing expenditures
plus funding of the overall environmental study for the project limits, it will be possible
for the City to reprogram upwards of$4.37 million dollars of the remaining money into
other bond projects.
D. Western Boulevard - Engineering and ROW acquisition for this project are to be paid
from existing bond funds allocated for this project in the amount of approximately
$780,000.00. Construction funding for this project was budgeted in the amount of
AIS - CIP Advisory Committee Agenda Item #3
September 7, 2006
Page 6 of8
$3,640,000.00 in FY2005-FY2006. Total project budget is therefore $4.42 million
dollars. Teague Nail and Perkins has projected the preliminary opinion of probable
construction cost as approximately $3.90 million dollars. Teague Nail and Perkins'
professional services fee for the project was approved at $381,825.00. Total project
expenditures are currently estimated at $4,281,825.00 plus inspections, testing and other
staff time. It appears that this project is adequately funded at this time based on these
numbers.
Existing Projects
E. Vintage Boulevard - The Vintage Parkway Paving Improvements project was funded in
2003 as part of the Capital Improvements Program for the purpose of constructing an
extension of Vintage Parkway from Bonnie Brae Street to U.S. Highway 377. A total of
$1.90 million dollars was budgeted for the project, of which approximately $1.33 million
dollars have been expended to date for engineering, ROW acquisition, survey,
construction of the at-grade crossing of the railroad by Union Pacific Railroad (UPRR),
testing of materials, and construction of site grading and sub grade preparation.
Approximately $0.57 million remains from the original funding. A total of $1.60 million
dollars was appropriated in this fiscal year through the sale of certificates of obligation.
Bids were received on June 15,2006 for the construction of Vintage Boulevard from
Bonnie Brae to U.S. Hwy. 377, with a low bid in the amount of$I,314,007.25, which was
subsequently awarded to Jagoe-Public Company at the City Council meeting on July 18,
2006. It is projected that an additional amount of just over $700,000.00 will be required to
fully complete the project, covering such items as construction of the connector road to
existing Vintage Boulevard on the west side of Bonnie Brae, TxDOT mandated changes at
U.S. Hwy. 377 (permit comments were not received until after bids were already
received), fencing contracts across affected properties, additional consultant fees for
permitting through FEMA, construction materials testing, and other miscellaneous items.
Total projected expenditures for completion, including construction costs and additional
projected costs, is therefore approximately $2.10 million dollars. Total available funds for
completion, including remaining bond funds and additional appropriated monies, is
approximately $2.17 million dollars. It appears that this project is adequately funded at
this time based on these numbers.
F. Hickory Creek Road - The Hickory Creek Road project was funded in 2000 as part of the
Capital Improvements Program for the purpose of constructing a widening of existing
Hickory Creek Road to a 4-lane divided section from F.M. 2181 (Teasley Lane) to
Riverpass Drive. A total of $2.25 million dollars was budgeted for the project, of which
$1.50 million dollars was provided through an agreement with Denton County. A total of
approximately $0.51 million dollars has been expended to date on ROW acquisition and
engineering, leaving a balance of approximately $1.74 million dollars, some of which will
be needed to wrap up the plans, bid the project, and provide for materials testing and
inspection. The consultant, Teague Nail and Perkins, produced a revised opinion of
AIS - CIP Advisory Committee Agenda Item #3
September 7, 2006
Page 7 of8
probable construction cost of approximately $3.20 million dollars in early 2005, prior to the
massive inflationary trends seen beginning in the fall of 2005. If an inflationary amount of up
to 35% is applied to the estimate previously prepared, the total needed for construction is
almost $4.32 million dollars, or $2.58 million dollars more than is currently available in the
project budget (could be more or less depending on actual inflationary amounts and remaining
expenditures).
SUMMARY
The design alone of Mayhill Road appears to be under funded by as much as $1.50 million
dollars; however, progressing a roadway design project through 100% completion without ROW
acquisition (projected at $9.0 million dollars) would not be prudent. The total projected
shortfall for Shady Oaks Drive and Brinker Road is at least $1.00 million dollars. The total
projected shortfall for Hickory Creek Road is upwards of $2.58 million dollars.
On the positive side, if staff is able to negotiate the funding of all u.s. Hwy. 377 improvements
through TxDOT, a possible funding surplus of $4.37 million dollars may be realized from the
bridge and intersection proj ects. Denton County has made $1.25 million dollars available for use
at the City's discretion from funds previously allocated to Lakeview Boulevard with the potential
to garner an additional $1.20 million dollars set aside by the County Commissioner Jim Carter
for improvements to F.M. 1830. In addition, Innovative Transportation Systems, Inc., the City's
regional transportation consultant, is projecting massive revenues available to all of the entities
in Denton County (TxDOT, County, etc.) through the tolling ofHwy. 121.
RECOMMENDATION
Staff recommends the following:
1. That staff continue to pursue agreements with TxDOT for sole-source funding and
improvements to u.S. Hwy. 377.
2. That available savings on projects and Denton County interlocal funding be diverted to
compensate for shortfalls on Shady Oaks Drive, Brinker Road and Hickory Creek Road.
3. That staff proceed with the hiring of a consultant for survey and schematic preparation on
Mayhill Road upon approval of the revised Mobility Plan by City Council. ROW acquisition
and final design services for this roadway are recommended to be delayed until spring 2007
in anticipation of revenue from Hwy. 121 tolling.
PRIOR ACTION/REVIEW (Council.. Boards.. Commissions)
Not applicable.
FISCAL INFORMATION
Provided above.
BID INFORMATION
Not applicable.
AIS - CIP Advisory Committee Agenda Item #3
September 7, 2006
Page 8 of8
DATE SCHEDULED FOR COUNCIL APPROVAL
Mobility Plan amendments are scheduled for Council approval on September 12,2006.
EXHIBITS
1. Denton Mobility Plan - Proposed Changes July 2006 - Roadway Component - presented at
August 23,2006 P&Z meeting.
~Res~_~ctfuI~IY s~bmitted,
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Jim Coulter
Director Water Wastewater Utilities
Prepared by
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Frank G. Payne, P.E.
City Engineer
AGENDA INFORMATION SHEET
AGENDA DATE:
October 3, 2006
DEP ARTMENT:
CM:
Planning and Development
Howard Martin, 349-8232 ..
SUBJECT
Receive a report, hold a discussion and give staff direction on the annexation of land in the
northwestern area of the City of Denton's extraterritorial jurisdiction generally located to the
north of Loop 288, west of Locust Street (F .M. 2164), south of Milam Road and east of Bonnie
Brae Street; which may include without limitation an approximate 1199 acres tracts owned by
Denton 288 LP. (A06-0005, Hills of Denton)
BACKGROUND
Applicant: Tomlin Investments Addison, TX
Denton 288 LP has assembled 2120.6 acres of land as shown in exhibit #2. The applicant is
requesting annexation of 1199 of the 2,120.6 acres. The 1199 acres are within the City of
Denton's Extraterritorial Jurisdiction (ETJ) and remaining 921 acres are within the city limits. In
the future the applicant proposes to rezone this property for a mixed-use development.
The subject site is currently undeveloped. Access to the property is from Locust Street, Loop
288, and Bonnie Brae. Other roadways that provide access are proposed for the site in the
update of the Mobility Plan.
In accordance with the City's annexation policy plan, approved in June 1993, the City will
"assess on a case by case basis the annexations of areas in the ETJ when significant
developments are proposed." Prior proposed annexations have required a City Council Work
Session to direct staff to pursue or not pursue an annexation.
Annexation should be considered when a property is located within the designated urbanizing
area; is expected to accommodate urban growth in the next twenty years; and if the annexation is
contiguous to existing city limits, city roads and rights-of-way. The Hills of Denton site is
located in Denton's ETJ. As such, development is subject to only the City's subdivision
regulations and not zoning regulations. Platting is required prior to development of the site.
Incorporation of this site into the City would require the annexation of up to 1200 acres.
The annexation timeline is at least two months. There is a 30-day notice of intent requirement
for all voluntary annexations. If City Council directs staff to proceed with the annexation, the
30-day notification will be sent out on November 10, 2006 and staff can move forward with the
annexation after December 12, 2006. At the earliest, the annexation can be completed by
February 20, 2007. Please refer to Attachment 1.
I
DENTON MOBILITY PLAN
Proposed Changes July 2006
Roadwa Com onent
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Proposed Changes
1 Hickol)' Creek RdlCreekdaIe
Realignment
4 4 lane extension
(From U.S. H\\)'. 77 to t-.1ilam Rd.)
5 Remove Nicosia Connection
to Loop 288
6 East Windsor Realignment
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2 Mills E:.."tension (west)
3 Bonnie Brae at U.S. Hwy. 77 Realignment
7 Audra Realignment
8 Mayhill Rd. Realignment
9 Karina Ex"tension to MayhiU
10 Southerly east-west roadway (new 4 lanes)
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11 Loop 288 Parallel CoUectors
U N-S Connection - CreekdaIe to
Rvan Rd. Remove Montecito
in" same limits.
13 Bonnie Brae eX"lension (new alignment - 6 lanes
14 Ganzer RdlLong Rd connection (6 lanes)
15 Outer Loop - NCTCOG Corridor
16 NorthlSouth connection (new 4 lanes)
17 Nortberl), east-west connection (new 4 lanes)
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Mobility Ph" apdl:ed Feb:=}' 21. 2roS
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Legend
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Not to Scale
Th is map is a graphic rcp-c:scntatioo prepared by
the City ofDcnIflO. GIS Oq=tmenland is
mlmded for use 001)' as a referenu. Dna
depicted here is oot gua:nmkal for lICaU2Cyand
may be subject 10 r",-isiou at a:ny time "-ithoclI
ootifteation. A Registc:rcd Swve)'or for the State
of T exes ""as oot consulted. for Sun'"" I",'el
accura<:)', supcn-isiou a:nd ce:rtifiutioo ~fthe pr0-
duced data b\' a ~istaed Professional Land
Sun'",'or for'the S~ of Texas "=Jd ha,'e lobe
perf~ed.
Notes:
1. Guideline minimum spacing for arterials and collectors for new
devdopment iJ detailed in the Transportation Design Criteria Manual
2. Roadway classifications shown are considered to be a minimum standard
and could be superceded by a more stringent classification as required by
the devdopment's Traffic Impact AnalysiJ.
3. Outer loop shown to indicate a preferred corridor consistent
with NCTCOG planning doannents.
4. Mayhill Road iJ to be tol1!tructed as a metropolitan highway to
TxDOT standarch.
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Staff seeks direction from City Council on pursuing annexation of these properties.
OPTIONS
1. Direct staff to proceed with annexation.
2. Direct staff to not proceed with annexation.
3. Direct staff to bring the Council additional information
ESTIMATED SCHEDULE OF PROJECT
Attachment 1 sets forth a proposed schedule.
PRIOR ACTION/REVIEW
A pre-application was submitted and reviewed for this project.
FISCAL INFORMATION
The studies necessary for annexation will address fiscal impacts.
EXHIBITS
1. Proposed Annexation Schedule
2. Location Map
Respectfully submitted:
Kelly Carpenter
Planning and Development Director
Respectfully submitted:
Supriya Chewle
Planner II
EXHIBIT 1
Proposed Annexation Schedule
A06-0005 - Hills of Denton
Notices to Intent to Annex (30 day prior to 1 st PH) will be send on November 10, 2006.
Tuesday, 12/12/2006
Tuesday, 12/19/2006
Wednesday, 12/20/2006
Tuesday, 1/9/2007
Sunday, 1/14/2007
Tuesday, 2/20/2007
City Council conducts first public hearing. (SC W ork/
Regular Session)
. Public notice must be no less than 10 days and no more than 20
days before public hearing.
o Annexation Study prepared and available for public review.
o Service Plan prepared and available for public review.
City Council conducts second public hearing. (SC W ork/ Regular
Session)
. Public notice must be no less than 10 days and no more than 20
days before public hearing.
Planning and Zoning Commission public hearings - make a
recommendation to City Council regarding the proposed
annexation.
City Council by a four-fifths vote institutes annexation
proceedings. (SC Work/ Regular Session)
First reading of annexation ordinance.
. Action must be more than 20 days after the second public
hearing but less than 40 days from the first public hearing.
Ordinance published
. The ordinance cannot be acted upon until at least 30 days after
publication.
City Council by a four-fifths vote takes final action. Second
reading and adoption of the annexation ordinance. City Council
considers approval of zoning request.
. Council action must be more than 30 days after publication of
ordinance and less than 90 days after council institutes
annexation proceedings (adopts ordinance on 1 st reading). The
second reading of the ordinance and zoning approval could be
held any time between February 14,2007 and April 9, 2007.
Annexations must be rigidly coordinated in conjunction with the City Council public hearing
schedule due to specific timing mandates established by Texas State Law. The Texas Local
Government Code requires that City Council institute annexation proceedings (1 st Reading of the
Ordinance) more than 20 days after the second City Council public hearin2: but less than 40
days from the first City Council public hearin2:.
- 1 -
Exhibit 2
Location Map
N
A
Legend
Annexation Site
"II_II~
- 1- City Limits
i'_II"_
D Entire Project Site
AGENDA INFORMATION SHEET
AGENDA DATE: October 3,2006
DEPARTMENT: Neighborhood Services Division
eM: Howard Martin, 349-8232 ..
SUBJECT
Receive a report, hold a discussion and give staff direction related to abandoned trash and debris at the
curb of vacant properties.
BACKGROUND
Abandoned trash and debris left at the curb of vacated properties is an ongoing issue and complaint in
the community. As a result of current complaints from citizens to Council Members, staff is providing
a background of this issue, existing regulations and processes and potential options for potential
consideration.
Issue & Regulations
In some instances, residential move-outs negatively impact the surrounding neighborhood. Upon
move-out, some homeowners and renters are placing unwanted items at the curb, with the apparent
expectation that "the City" will pick up and dispose of the abandoned trash and debris. Solid Waste
collection is not automatically performed at these vacant properties and as a result, the trash and debris
becomes not only unsightly, but can generate health and safety issues.
Code Enforcement Officers working an area, as well as neighbors, report trash and debris complaints
as they are noticed. Neighbors of nearby properties may also have the same expectation as the former
occupant, that the City will remove the items immediately. The concerns expressed by citizens
regarding this issue are that it is: an eyesore; an unspoken signal that this type of behavior is tolerated
in their neighborhood or by the City, sometimes rummaged through and scattered by others, and at
times dispersed by wind, rain, and animals, thereby creating a larger mess. This problem occurs across
the City, but is most common in areas with more rental properties due to tenant turnover.
To address this issue, the City has adopted an ordinance to restrict the amount of time that owners and
tenants have to remove items illegally placed at the curb. In accordance with the Texas Health and
Safety Code, Chapter 342--Local Regulation of Sanitation, the City of Denton has adopted a seven (7)
day timeframe (Chapter 20-132; 20-134) for the owner and/or tenant of a property to remove trash and
debris from the property. Although current City of Denton code is written to reflect the same seven (7)
day abatement timeframe outlined in state law, municipalities may adopt more restrictive requirements
for their local codes.
Current Abatement Process
The current City process for handling abandoned trash and debris at the curb of vacant properties,
consists of a number of options in addition to the citation, including: abatement by the owner/tenant,
removal by City contractor or potentially court procedures.
This process is somewhat different for trash and debris left at the curb of occupied properties. In the
case of occupied properties, the City does not usually contract for a cleanup. The goal is to gain
voluntary compliance from the occupant. If abatement does not occur, a citation is issued and the
occupant usually comes to court. At which time, the Judge requires the cleanup.
Following is a summary of the current process for vacant properties.
A. Contract Removal & Fee Collection Process
When the City of Denton hires a contractor to remove the trash and debris from the curb of a vacated
property, the contractor is required to perform the specified work within three days of receiving the
work order. Upon completion of the contracted work, Code Enforcement mails an invoice for the
contractor fee, plus an $80 administrative fee, to the property owner for payment. The property owner
has 15 days to appeal the costs in writing to the City Council. The property owner has 30 days in
which to pay the invoice before it becomes delinquent.
The current Code Enforcement contractor charges $37.50 per cubic yard for trash and debris removal
with a three cubic yard minimum equaling $112.50.
Collection System & Process
Under a newly instituted collection system, if after 30 days the invoice payment has not
been received, the property ownership information and the unpaid invoice amount is
forwarded to Credit Systems International, Inc. (CSI) to begin the collection process. If
CSI has not collected on the account within 45 days, they file the delinquent account
information with credit bureaus. After 60 days, if CSI has not collected on the account,
the City files a lien on the property and CSI continues the collection process. The City
does not file a lien until 90 days into the collection process.
CSI receives 21.9% of the administrative fee ($80) and contractor charges collected; the
City receives 100% of the interest collected. CSI sends the City a check for the net
amount collected. The City then releases the lien.
When CSI has successfully collected on an account, they notify the City of Denton Tax
Office via a copy of the payment receipt. At that time, the original lien is pulled and the
deed information is retrieved from the County Clerk's website. A lien release document
is drawn up, signed, and notarized. A check is attached to the original lien release and
mailed or hand-delivered to the County Clerk's Office. Once the lien release is filed,
the County Clerk's Office returns a copy to the City of Denton Tax Office and the
release information is entered into the Tax Office database. If requested, the Tax Office
will send a letter to the citizen confirming the release of the lien.
B. Citation and Court Process
If a trash and debris nuisance violation is not abated within 7 days, the City will issue a citation to the
property owner, former tenant or both. The citizen may choose to pay the citation or appear in court to
dispute the alleged violation. A court appearance date is written on each citation. Citations are mailed.
The court appearance date is approximately 30 days from the date the citation was issued.
If a citizen appears in court and the violation remains unabated, the citizen may set a case for trial or
meet with the Prosecutor and agree to abate the nuisance before the next Environmental Court setting,
usually two weeks. If the nuisance is abated when the citizen returns to court in two weeks, the
2
citation is dismissed; the citizen is placed on six months deferred adjudication, and pays court costs of
$65 - $75. Ifin the next six months the citizen commits another code offense on the same property,
they will be required to pay the new citation as well as the previous citation. If a citizen appears in
court and the contractor has already cleaned the property, the prosecutor, as part of a plea agreement,
requires the defendant to pay the contractor invoice.
Some citizens may choose to pay a citation and not abate the violation. This is not a common
occurrence, except among chronic violators. However, in such a case, the City can automatically re-
cite the citizen without further notice, and continue to cite the citizen until the violation is abated.
Current System & Process Concerns
Due to current state and local regulations, once a complaint is reported and investigated, abandoned
trash and debris can potentially remain at the curb for up to 2 weeks before the City contractor abates
the problem, and even longer if abated by the owner/tenant. As a result, there can be the perception
that the City is not being expedient in seeking a remedy. Staff was asked to investigate potential
options for the removal of abandoned trash and debris to lessen the impact on Denton neighborhoods.
The following options are provided for discussion.
Potential Options
1. Maintain current process for abating abandoned trash and debris at the curb, with 7 -day
abatement period. This process allows the City to write a citation, contract a cleanup, invoice
for the cleanup, and if necessary, file a lien. However, there may be the perception from
citizens and neighborhoods that the City is not being expedient in remedying the problem.
2. Shorten the 7-day abatement period to a 5-day abatement period. Although this is a more
expedient process, it eliminates the City's ability to file a lien for non-payment of contracted
services per Chapter 342 of the Texas Health and Safety Code. As stated earlier, a seven (7)
day abatement period is required by state law in order to file a lien on a property for non-
payment. If the City chooses to pass a more restrictive ordinance, it will lose the right to file a
lien as provided under Chapter 342 of the Texas Health and Safety Code. The city still retains
the authority to write a citation.
3. Eliminate the abatement timeframe altogether, collect the items, and send an invoice. The
problem will be eliminated quickly, however, it makes the assumption that the owner and/or
tenant do not intend to attempt a cleanup and are making a passive request for service. In
addition, as in Option 2, it eliminates the City's ability to file a lien for non-payment of
contracted services per Chapter 342 of the Texas Health and Safety Code. However, the city
still retains the authority to write a citation.
4. Other options as determined by the City Council.
3
EXHIBITS
1. City of Denton Code Ordinances-Chapter 20
2. Texas Health and Safety Code-Chapter 342
Prepared By:
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Lancine Bentley, Program Area Manager
Neighborhood Services
Respectfully submitted:
Janet Fitzgerald, Director
Parks and Recreation Department
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Exhibit 2
AGENDA INFORMATION SHEET
AGENDA DATE:
October 3, 2006
DEP ARTMENT:
Tax
ACM:
Jon Fortune
SUBJECT
Consider approval of tax refunds for the following property taxes:
Name Reason Tax Amount
Year
1. Coe, Edwin & AllysonlParker, Charles & DCAD Supplemental Change 2005 $2,256.40
Kathryn
2. Coe, Edwin & Allyson/Parker, Charles & DCAD Supplemental Change 2004 $2,238.02
Kathryn
3. Parker, Charles & Kathryn DCAD Supplemental Change 2003 $2,088.52
4. Coe, Edwin & Allyson/Parker, Charles & DCAD Supplemental Change 2002 $2,015.73
Kathryn
5. Chase Home Finance/Ghaffari, Hakimeh Duplicate Payment 2005 $ 903.28
6. Daugherty Homes Inc Overpayment 2005 $ 666.19
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 $10,168.14.
;:ct~d:
;~r~-
Jon Fortune
Assistant City Manager
AGENDA INFORMATION SHEET
AGENDA DATE: October 3,2006
DEPARTMENT: General Government
CM/DCM/ACM: Betty Williams, Executive Administrator
Howard Martin, Interim City Manager
SUBJECT:
Consider a resolution of the City of Denton, Texas, adopting the City of Denton's 2007 State
Legislative Program for the 80th Texas Legislature; providing a repealer; and providing an
effective date.
BACKGROUND:
The 80th Regular Session of the Texas Legislature begins in January 2007. As we prepare for that
session, the City Council has met in work sessions, participated in legislative seminars and
received input from city staff on our legislative issues. The attached 2007 State Legislative
Program (Exhibit "A") contains our legislative issues that relate to state initiatives that impact
city finances, development and land use, right-of-ways, regional transportation, utility, and
public safety issues.
The Mayor and staff have also been working with the Texas Municipal League (TML) task
forces, the TML Big City Lobbyist group and other cities to identify possible legislative issues of
interest to Denton. The adoption of this program allows city representatives to work with state
legislators on supporting and opposing legislation that that will accomplish our goals. It also
gives city representatives the ability to react quickly to proposed legislation and authority to
enter testimony, on these issues, on behalf of the City.
OPTIONS
The City Council may adopt the resolution and the City of Denton 2007 State Legislative
Program, or direct staff to make changes and then adopt the legislative program as amended.
RECOMMENDATION
Submit resolutions to TML of the beneficial reuse (compost/mulch) and special districts in a
city's ETJ issues, for consideration at their annual conference.
PRIOR ACTION/REVIEW (Council.. Boards.. Commission):
August 7, 2006, City Council Special Called Work Session
September 26, 2006, City Council Special Called Work Session
ADA/EOE/ ADEA
www.cityofdenton.com
(TDD 800-735-2989)
9/28/06
FISCAL INFORMATION:
None.
Prepared by:
ctC~
John Cabrales Jr.
Public Information Officer
ADA/EOE/ ADEA
City's 2007 Legislative Program
Respectfully submitted:
~rii
! .
Betty Williams
Executive Administrator
www.cityofdenton.com
Page 2 of2
(TDD 800-735-2989)
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF
DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS
LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the 80th Texas Legislature will commence in January 2007; and
WHEREAS, appraisal caps, revenue caps, general government, and many legislative
issues affecting local government will be considered; and
WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas
Legislature, attached as Exhibit "A"; NOW, THERFORE,
THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES:
SECTION 1~ That the City of Denton's 2007 Legislative Program from the 80th Texas
Legislature is adopted as set forth in Exhibit "A," incorporated herein and made a part of this
resolution for all purposes.
SECTION 2. That the Mayor and City COlUlcil, City Manager and the City Attorney, or
their designees shall communicate the items included in the state legislative program to members
of the Texas Legislature.
SECTION 3~ The City Manager, or his designee, is directed to draft appropriate
legislation, seek a sponsor, and actively pursue passage of such legislation by providing
testimony from the Mayor and City council and City Staff and through other appropriate means.
PASSED AND APPROVED this the 3rd day of October 2006.
PERRYR~ McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
City of Denton 2007 State Legis .
October 3, 2006
Page 5
"Exhibit A"
City of Denton
2007 State Le2islative Pro2ram
State of Texas
80th Legislative Session
As approved by the Denton City Council
(October 3, 2006)
TABLE OF CONTENTS
City of Denton Mayor and Council Contact Information 4
City Manager, City Attorney and City Staff Contact Information 5
2007 State Legislative Program Adopting Resolution 6
Denton's Hi2hest Le2islative Priority
. Continue to urge the legislature not to adopt any legislation, such as
reductions in the property appraisal cap or implementation of any type of
revenue cap, which would negatively affect City revenues and economic
development efforts. 7
Erosion of Local Control over City Ri2hts-of-Wav
. Support TML in "seeking introduction and passage" of legislation that
would address the failure of utility companies to relocate their facilities in
a timely manner as required by current law. 7
. Support TML in "seeking introduction and passage" of legislation that
would "grandfather" the provisions of Texas law in any federal cable
franchising bill if any proposed federal law provisions would erode the
provisions of Senate Bill 5 (79th Legislature, Second Called Session). 7
. Support TML in opposing any legislation that would enact any
detrimental amendments to the provisions of Senate Bill 5 or erode the
provisions of Senate Bill 5 (79th Legislature, Second Called Session). 7
Tax and Finance Issues
City's ability to fund necessary local services
. Oppose legislation that would mandate a reduction in the current 10oA.
appraisal growth cap. 8
. Oppose legislation that would impose revenue caps of any type, including a
lowered rollback rate, mandatory tax rate ratification elections, or lowered
rollback petitions requirements. 8
. Oppose legislation that imposes a property tax freeze that can be
implemented by any mechanism other than council action. 8
Textbook Sales Tax Holiday
. Oppose any legislation that would impose a sales tax holiday for textbooks. 9
Municipal Audit Authority
. Support legislation that would allow municipalities to audit a taxpayer's
records for sales tax compliance, and ensures the equal tax treatment of
taxpayers, regardless of their sales method. 9
Re2ional Transportation
Sales Tax for Public Transportation Initiatives
. Support legislation that would exempt from the two-percent cap on local
sales tax any local sales tax committed to public transportation initiatives. 10
Regional Mobility Authority
. Oppose legislation that would create a Regional Mobility Authority in the
four county area of North Central Texas including Dallas, Denton, Collin
City of Denton 2005 State Legislative Program
January 18, 2005
Page 1
and Tarrant Counties for the purpose of administering funds received
through revenue sharing agreements. 10
Utility Issues
Electric subsidies for state universities
. Oppose legislation that would extend the electric subsidy to state four-year
state university, upper-level institution, Texas State Technical College or
college, by municipal owned utilities. 11
Drainage Fees
. Support legislation that repeals the drainage fee exemption for state
entities. 11
Bioreactors and other state-of-the-art landfill technologies
. Propose legislation that would promote and allow the permitting of
Municipal Solid Waste landfill design and operating technologies that can
have a positive effect on the environment and provide improved site
utilization. 11
Retain Local Control over Development Issues and Fees
. Oppose legislation that would erode city annexation authority. 12
. Oppose legislation that would erode city authority in the extraterritorial
jurisdiction over special districts. 12
. Oppose legislation that would allow voters in the ET J to vote on whether
any proposed ordinance or ordinance amendment shall apply in the ET J. 12
. Oppose legislation that would reduce a municipal authority and discretion
to approve the creation of a special district within a city's incorporated
area or ETJ, including the expansion of a district's boundaries or powers. 12
. Oppose legislation that will reduce or eliminate development fees,
exactions or building permits. 12
. Oppose legislation that will restrict cities' ability to adopt or amend zoning
regulations, or vest or otherwise create a property right in a zoning
classification. 12
Red Li2ht Cameras
. Oppose legislation that would restrict a city's ability to implement a
photographic red light enforcement system to use cameras at traffic lights
and impose a civil penalty for running the light. 13
Grandfatherin2 of Existin2 Employees into Civil Service System
. Support legislation that expands the grandfathering clause of newly
classified civil service positions to municipalities that do not meet the
population requirement outlined in current legislation. 13
TML Resolutions proposed by the City of Denton
Beneficial Reuse/Compost/Mulch
. Oppose any legislation that would limit or prohibit a city's ability to make
and sell compost/mulch products, inside and outside of the city limits. 14
Special Districts in City's ETJ
. Support legislation that would place a moratorium on the creation of
special districts until the State Legislature can appoint a task force to
study their adverse affects; and providing for an effective date. 14
City of Denton 2005 State Legislative Program
January 18, 2005
Page 2
Support Le2islation that directly benefits UNT and/or TWU
. Support legislation that directly benefits UNT and/or TWU, if such
proposals do not adversely affect the city's interest. 15
Support Le2islation that directly benefits Denton ISD
. Support legislation that directly benefits Denton lSD, if such proposals do
not adversely affect the city's interest. 15
City of Denton 2005 State Legislative Program
January 18, 2005
Page 3
City of Denton City Council Members
Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201
Voice Mail for all of Council- 940-349-8555
Mayor
Perry McNeill
1508 Gatewood Drive
Denton, TX 76205
E-mail: perry.mcneill@cityofdenton.com
Office: 940-565-2364
Home: 940-591-6080
Cell: 940-390-9463
Fax: 940-381-0106
Council Member - District 1
Charlye Heggins
1606 E. McKinney, #11101
Denton, TX 76209
E-mail: charlye.heggins@cityofdenton.com
Home: 243-7937
Cell: 391-2339
Mayor Pro Tern - District 2
Pete Kamp
110 Friar Tuck Circle
Denton, TX 76209
E-mail: pete.kamp@cityofdenton.com
Office: 940-591-0308
Home: 940-566-5557
Cell: 940-390-9485
Council Member - District 3
Jack Thomson
1401 Amherst Dr.
Denton, TX 76201
E-mail: iack.thomson@cityofdenton.com
Home: 940-382-5176
Cell: 940-390-2296
Council Member - District 4
Guy McElroy
10808 Balentine
Denton, TX 76207
E-mail: guy.mcelroy@cityofdenton.com
Home: 262-1636
Council Member - At Large Place 5
Bob Montgomery
2329 E. Windsor
Denton, TX 76209
E-mail: bob.montgomery@cityofdenton.com
Home: 940-891-0051
Cell: 940-391-6545
Pager: 940-380-5140
Deputy Mayor Pro Tern - At Large Place 6
Joe Mulroy
124 Hollyhill
Denton, TX 76205
E-mail: ioe.mulroy@cityofdenton.com
Home: 940-382-3396
City of Denton 2005 State Legislative Program
January 18, 2005
Page 4
City Manager, City Attorney and City Staff
The Denton City Council and staff would be glad to provide information, research
issues and testify on the City of Denton 2005 Legislative Program.
Municipal Offices:
City of Denton
215 E. McKinney
Denton, Texas 76201
www.citvofdenton.com
George Campbell
City Manager
(940) 349-8306
Ed Snyder
City Attorney
(940) 349-8336
Howard Martin
Assistant City Manager
(940) 349-8232
Jon Fortune
Assistant City Manager
(940) 349-8535
Sharon Mays
Director/Electric Utilities
(940) 349-8487
Betty Williams
Executive Administrator
(940) 349-8302
If you or your legislative staff needs assistance from Denton or has any questions
concerning Denton's legislative priorities, please contact:
John Cabrales, Public Information Officer
(940) 349-8509, (940) 349-7444 Fax, or email: iohn.cabrales@cityofdenton.com
City of Denton 2007 State Legislative Program
October 3, 2006
Page 5
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF
DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS
LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the 80th Texas Legislature will commence in January 2007; and
WHEREAS, appraisal caps, revenue caps, general government, and many legislative
issues affecting local government will be considered; and
WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas
Legislature, attached as Exhibit "A," NOW THERFORE,
THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES:
SECTION 1. That the City of Denton's 2007 Legislative Program from the 80th Texas
Legislature is adopted as set forth in "Exhibit A," incorporated herein and made a part of
this resolution for all purposes.
SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or
their designees shall communicate the items included in the state legislative program to
members of the Texas Legislature.
SECTION 3. The City Manager, or his designee, is directed to draft appropriate
legislation, seek a sponsor, and actively pursue passage of such legislation by providing
testimony from the Mayor and City Council and city staff and through other appropriate
means.
PASSED AND APPROVED this the 3rd day of October 2006.
PERRY McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ED SNYDER, CITY ATTORNEY
BY:
City of Denton 2007 State Legislative Program
October 3, 2006
Page 6
Denton's Lee:islative Priorities
The City of Denton has adopted the following legislative issues as priority issues
for the 80th Texas Legislative Session. The City Council of the City of Denton has
met in workshops, participated in legislative seminars and has received information
from city staff and various groups within the community to set these priorities.
Denton's Hi2hest Le2islative Priority
. Continue to urge the legislature not to adopt any legislation, such as
reductions in the property appraisal cap or implementation of any
type of revenue cap, which would negatively affect City revenues and
economic development efforts.
Background: The City of Denton during the 79th Texas Legislative Session and
subsequent Special Sessions, worked diligently with other local governments in
providing information to the Texas Legislature that helped them adopt school
finance reform legislation that did not negatively impact city revenues or economic
development efforts. The City of Denton continues to urge the Texas Legislature to
not pass any legislation, such as reductions in the property appraisal cap or
implementation of any type of revenue cap, which would negatively affect City
revenues and economic development efforts.
Erosion of Local Control over City Ri2hts-of- W av
. Support TML in "seeking introduction and passage" of legislation
that would address the failure of utility companies to relocate their
facilities in a timely manner as required by current law.
. Support TML in "seeking introduction and passage" of legislation
that would "grandfather" the provisions of Texas law in any federal
cable franchising bill if any proposed federal law provisions would
erode the provisions of Senate Bill 5 (79th Legislature, Second Called
Session).
. Support TML in opposing any legislation that would enact any
detrimental amendments to the provisions of Senate Bill 5 or erode
the provisions of Senate Bill 5 (79th Legislature, Second Called
Session).
Background: Historically, most utilities were required by franchises and state law
to relocate their facilities at their cost when the relocation was required for a public
work's project. Some utility companies are arguing that Chapter 283 of the Texas
City of Denton 2007 State Legislative Program
October 3, 2006
Page 7
Local Government Code (H.B. 1777) altered state law. Denton has experienced
delay in public work's projects due to this confusion and a clarification of state law
IS necessary.
Cities may impose numerous kinds of regulation on entities that use the city's right
of way. These regulations will withstand legal challenge because they are
reasonably connected to protection of the health, safety, or welfare of the public.
Denton opposes any new legislation that limits the ability of cities to control the
right of way.
The Federal Legislature is considering various bills that could erode the provisions
agreed to by all concerned parties in Senate Bill 5 the was passed by the 79th Texas
Legislature during their Second Called Session. Denton opposes any legislation,
Federal or State, which would reduce any of the provisions of Senate Bill 5,
especially the definition and collection of franchise fees, the removal of existing
local cable franchises, and restriction of municipal police powers in public right-
of-ways.
Tax & Finance Issues
City's ability to fund necessary local services
. Oppose legislation that would mandate a reduction in the current
100/0 appraisal growth cap.
. Oppose legislation that would impose revenue caps of any type,
including a lowered rollback rate, mandatory tax rate ratification
elections, or lowered rollback petitions requirements.
. Oppose legislation that imposes a property tax freeze that can be
implemented by any mechanism other than council action.
Background: During the 79th Texas Legislative Session, the City of Denton
adopted a resolution that urged the Legislature not to adopt school finance reforms
that would adversely affect city revenues and economic development efforts. The
city testified and wrote numerous letters during the session, and subsequent special
called sessions. The city continues to oppose state initiatives that restrict a city's
ability to fund necessary local services. TML has also placed these issues in their
oppose category.
City of Denton 2007 State Legislative Program
October 3, 2006
Page 8
Textbook Sales Tax Holiday
. Oppose any legislation that would impose a sales tax holiday for
textbooks.
Background: There is a good chance that the State Legislature will again consider
a bill providing for a "sales tax holiday" for all books bought by a full- or part-time
student at an accredited public or private institution of higher education if the sale
takes place during certain days in August and in January. During the last legislative
session we successfully opposed these types of bills through a coordinated effort
with other "college cities." We estimate that this "sales tax holiday" for books
would result in an approximately $444,000 annual sales tax revenue loss for the
City.
Municipal Audit Authority
. Support legislation that would allow municipalities to audit a
taxpayer's records for sales tax compliance, and ensures the equal
tax treatment of taxpayers, regardless of their sales method.
Background: Under Chapter 151 of the Texas Tax Code, only the State of Texas,
through the Comptroller of Public Accounts and/or their representative, can audit
a taxpayer's records for sales tax compliance. Although the City recognizes the
proprietary and confidential nature of a taxpayer's sales records and
wholeheartedly believes in maintaining an equal and competitive market place,
it is the City's view that manpower limitations in the Comptroller's Office have
negatively impacted its ability to effectively monitor and audit the hundreds of
taxpayers located in the City of Denton and the State of Texas.
By giving municipalities the authority to audit taxpayer sales records, it expands
the manpower available to the Comptroller's Office, increases compliance with
sales tax laws, and places local control on most municipalities largest revenue
source. At the same time, the City would continue to support the equal tax
treatment of all taxpayers, regardless of the sales method. Under Chapter 151 of
the Texas Tax Code, the tax incidence of the Texas Sales and Use Tax is
dependent on both a business' nexus and 'place of business' within the State
of Texas. Therefore, the City would support the continued taxation of all taxable
goods and services, regardless if provided in a traditional bricks and mortar
location or over the internet.
City of Denton 2007 State Legislative Program
October 3, 2006
Page 9
Re2ional TransDortation
Sales Tax for Public Transportation Initiatives
. Support legislation that would exempt from the two-percent cap on
local sales tax any local sales tax committed to public transportation
initiatives.
Background: The City supports the option to exclude the locally authorized transit
sales tax currently dedicated to the Denton County Transportation Authority from
the 2 % cap of the local option sales tax. The state mandates that a municipality
can exercise no more than two percent of the local option sales tax. The City of
Denton meets this cap, with 0.5 percent of local option sales taxes being
contributed to the Denton County Transportation Authority and the other portion of
the cap being applied for general use (1.0 percent) and property tax reduction (0.5
percent). By excluding any current and future sales tax committed to regional
public transportation initiatives from the local option sales tax cap, the City may
have the option to utilize local sales tax for other local needs. This initiative is also
being considered by other communities in the North Central Texas Region as part
of an effort to create local funding options for a seamless regional transportation
network.
Regional Mobility Authority
. Oppose legislation that would create a Regional Mobility Authority
in the four county area of North Central Texas including Dallas,
Denton, Collin and Tarrant Counties for the purpose of
administering funds received through revenue sharing agreements.
Background: The Texas Department of Transportation (TxDOT), The North
Texas Tollway Authority (NNT A) and the North Central Texas Council of
Governments' Regional Transportation Council (RTC) are currently exploring
programming and administration policies as it relates to concession fees and excess
revenue received through Comprehensive Development Agreements (CDA).
TxDOT has suggested that a Regional Mobility Authority be created for this
purpose as well as to develop, implement and finance regional toll projects.
NCTCOG staff is opposed to the creation of an RMA as it will reduce local
autonomy in the development and implementation of regional transportation
infrastructure projects. The RTC staff is currently working with TxDOT and the
NTT A to develop an institution to provide for the administration of the revenue
sharing agreements and ensure financial accountability. The Denton Mobility
Committee supports the RTC/NCTCOG position on this issue.
City of Denton 2007 State Legislative Program
October 3, 2006
Page 1 0
Utility Issues
Electric subsidies for state universities
. Oppose legislation that would extend the electric subsidy to state
four-year state university, upper-level institution, Texas State
Technical College or college, by municipal owned utilities.
Background: In 1995 the Texas Legislature passed a law requiring all electric
utilities in Texas to reduce their base rate charges for electric service provided "to
a facility of a four-year state university, upper-level institution, Texas State
Technical College or college" by 20%. The total impact of this discount on the
City is that the two universities pay approximately $800,000 per year less for their
electric service than it costs to serve them. There is a possibility that state
universities might try to extend this 20% discount on their electric service, since
this discount is eliminated by law at the end of 2006.
Drainage Fees
. Support legislation that repeals the drainage fee exemption for state
entities.
Background: During the 78th Texas Legislature, the legislature enacted legislation
that exempts state properties, state colleges and universities from paying municipal
storm water utility fees. These state entities benefit from the flood prevention and
storm water control provided by city storm water program. All entities should pay
their fair share of the city's efforts to prevent flooding and to respond to costly
federal mandates relating to storm water run-off. When state entities are exempted
from municipal drainage fees, the remaining ratepayers make up the difference.
TML is opposing the exemption of any entity from paying municipal drainage fees.
Bioreactors and other state-of-the-art landfill technologies
. Propose legislation that would promote and allow the permitting of
Municipal Solid Waste landfill design and operating technologies
that can have a positive effect on the environment and provide
improved site utilization.
Background: In March, 2006 the Texas Commission on Environmental Quality
(TCEQ) adopted updated Municipal Solid Waste (MSW) rules, 30 TAC 330. The
draft rules contained provisions to accommodate the permitting of bioreactor
landfills. During the adoption process the portions of the rules regarding
bioreactors was removed and the rule package was adopted without any provision
City of Denton 2007 State Legislative Program
October 3, 2006
Page 11
to allow for the permitting of landfills using current state-of-the-art landfill
technology. This included the use ofbioreactor processes and other processes that
enhance the naturally occurring biodegradation of the organic components to speed
up the chemical and biological stabilization of the waste. The City would like to
explore the possibility of using some of these technologies.
Retain Local Control over Development Issues and Fees
. Oppose legislation that would erode city annexation authority.
. Oppose legislation that would erode city authority in the
extraterritorial jurisdiction over special districts.
. Oppose legislation that would allow voters in the ET J to vote on
whether any proposed ordinance or ordinance amendment shall
apply in the ETJ.
. Oppose legislation that would reduce a municipal authority and
discretion to approve the creation of a special district within a city's
incorporated area or ETJ, including the expansion of a district's
boundaries or powers.
. Oppose legislation that will reduce or eliminate development fees,
exactions or building permits.
. Oppose legislation that will restrict cities' ability to adopt or amend
zoning regulations, or vest or otherwise create a property right in a
zoning classification.
Background: Denton has allocated major staff recourses and spent significant
sums on creating a development strategy, embodied in the Denton Plan, 1999-
2020, and the Denton Development Code. Denton citizens do not want these efforts
to be undermined by legislation eroding local control. The city needs to retain local
authority over annexation, development fees, and building permits to implement
these plans.
Denton provides water and wastewater to its own citizens and also provides water
and wastewater services through interlocal agreements with many smaller cities in
Denton County. There are 12 fresh water supply districts in Denton County. The
City of Denton has had problems with a fresh water supply district forming inside
the city limits and had to file litigation. Fresh water supply districts frequently
have substandard infrastructure and cannot serve the development that the district
City of Denton 2007 State Legislative Program
October 3, 2006
Page 12
projected at build out. These systems are not required to bid competitively and are
very expenSIve.
Developers will often structure the debt to include a bond balloon payment. This
balloon payment is usually due around the time the system is failing. Cities are
then pressured to take over the district through annexation and are forced to spend
substantial sums to correct the problem. This is the same problem Houston faced
in the early 80s. Denton will urge legislators to exercise caution when creating
special districts and make sure that special districts notify and receive permission
from cities before forming.
TML is also opposing all of these types of legislation.
Red Li2ht Cameras
. Oppose legislation that would restrict a city's ability to implement a
photographic red light enforcement system to use cameras at traffic
lights and impose a civil penalty for running the light.
Background. During the 78th Texas Legislature, SB 1184 passed and amended the
Texas Transportation Code to allow cities to use cameras at traffic lights and
impose a civil penalty for running the red light. Each year in the United States
more than 800 people die and over 200,00 are injured in crashes that involve
running of a red light. Texas is ranked fourth in the nation for death rates in red-
light crashes. In April 2006, the City implemented red light cameras and four
intersections in the city. Since that time, the average daily red light violations have
gone down significantly at these intersections, and no motor vehicle accidents have
occurred at these intersections.
Grandfatherin2 of Existin2 Emplovees into Civil Service System
. Support legislation that expands the grandfathering clause of newly
classified civil service positions to municipalities that do not meet the
population requirement outlined in current legislation.
Background: The City is in favor of supporting legislation that lowers the
population requirements for grandfathering newly classified civil service positions
under Chapter 143.021 of the local government code. Current legislation
grandfathers newly classified civil service positions if a municipality meets
population requirements of 220,000 or more. While the City was able to
successfully reclassify some civil service positions through the meet and confer
process, a more permanent solution through legislative change is favored.
City of Denton 2007 State Legislative Program
October 3, 2006
Page 13
TML Resolutions proposed bv the City of Denton
Beneficial Reuse/Compost/Mulch
. Oppose any legislation that would limit or prohibit a city's ability to
make and sell compost/mulch products, inside and outside of the city
limits.
Background: Rep. Dennis Bonnen, District 25, has asked the Texas Attorney
General for an opinion on "whether or not a city can operate a well-organized,
competitive and commercial compost/mulch business and sell its products outside
its city limits in direct competition with private enterprise. If representative
Bonnen receives a favorable opinion from the Attorney General or if he is
successful in passing this type of legislation, this would severely impact the
financial viability of our composting operation.
The City of Denton Water Reclamation Division initiated the composting
operation in 1990. The division had been exploring alternative methods ofbiosolid
disposal and the composting process seemed very promising for an urban
environment. The option exists to put wastewater biosolids in the landfill however
this is not an environmentally responsible solution. If the Water Reclamation
Division stops composting not only will the wastewater biosolids have to be
disposed in the landfill but the construction lumber, wood waste and yard waste
will have to be disposed of in the landfill as well.
To put this volume of waste material in perspective, since 1990 approximately
1,000,000 yards of wood waste and bio solids have been diverted from the landfill.
It is estimated that the value of landfill airspace saved in excess of $2,000,000.
Not only is the composting operation saving landfill space it is extending the
operating life of the landfill.
Special Districts in City's ET J
. Support legislation that would place a moratorium on the creation of
special districts until the State Legislature can appoint a task force to
study their adverse affects; and providing for an effective date.
Background: Special districts were originally formed to allow rural areas to
obtain adequate water and sewer supplies in areas not served by municipal
facilities. In conjunction with the reduction in city authority to annex and vested
rights legislation designed to protect developers, developers of dense urban
City of Denton 2007 State Legislative Program
October 3, 2006
Page 14
developments in rural ETJ areas are using this special district legislation to create
mini-quasi-political subdivisions in the ETJ's of cities.
The incentive for creating special districts is that the developer obtains public
financing where all of his development costs are reimbursed on the front end when
the bonds for special district infrastructure are sold. The bondholders are paid back
through ad valorem taxes assessed against the future homeowners that are typically
at a tax rate that is dramatically higher than normal city tax rates. If the city decides
to annex the special district area it must assume the special district's debt, thus
putting the city in the position of having to pay for infrastructure through a much
lower tax rate. This in turn becomes a disincentive for a city to annex the area until
the debt is paid off, thereby further eroding the city's ability to annex area within
its ETJ.
Cities are not allowed to apply there zoning controls in the ETJ, counties generally
have no zoning controls, and there are no regional or state authorities that have
zoning power in ETJ' s. Under current law cities only have two options, try to
negotiate a development agreement with the developer proposing the special
district or institute involuntary annexation proceedings. However, a city's ability to
involuntary annex property in the ETJ has been greatly curtailed by state law, and
it is often difficult to negotiate a favorable agreement because of the vested rights
laws that lock in development rights once any kind of application is filed. We think
that cities, and not developers, are better suited to look out for the public interest in
these ETJ areas.
Support Le2islation that directlv benefits UNT and/or TWU
. Support legislation that directly benefits UNT and/or TWU, if such
proposals do not adversely affect the city's interest.
Support Le2islation that directlv benefits Denton ISD
. Support legislation that directly benefits Denton lSD, if such
proposals do not adversely affect the city's interest.
City of Denton 2007 State Legislative Program
October 3, 2006
Page 15
AGENDA INFORMATION SHEET
AGENDA DATE:
October 3, 2006
DEP ARTMENT:
Utilities/Customer Service
Howard Martin, 8232"
ICM:
SUBJECT
Consider adoption of an ordinance of the City of Denton, Texas approving a lease amendment
between the City of Denton and FMP Denton, L.P. for the City hall in the Golden Triangle mall;
authorizing the expenditure of funds therefore; and providing an effective date. The Public
Utility Board recommends approval (6-0).
BACKGROUND
Feldman Management Properties LP took over the management of Golden Triangle Mall as of
February 6, 2006. As successor to the original lease, which expires on September 30, 2006, they
have agreed to a lease amendment extending the lease for an additional 3 years. The lease
pertains to space number L-22A at the Golden Triangle Mall, 2201 S. 1-35 E., Denton, Texas,
known as City Hall in the Mall. The amendment to the lease will provide for an extension to
include the time period from October 1,2006 through September 30,2009. The annual lease
base rate of$17,620.00 for the first year lease (October 1,2006 to September 30, 2007) is the
same as the current annual payment. For the remaining two years, starting October 1,2007 and
October 1,2008, the annual lease base rates will be $18,148.60 and $18,694.82 respectively.
This lease amount does not include monthly incidental utility charges paid by the City. This
includes common area cost, property taxes, etc. Currently this is an additional annual payment of
$26,090.76.
Additional information was requested by PUB on September 11, 2006 regarding the City of
Denton's option to terminate the contract. This additional information was presented to the board
on September 25, 2006.
OPTIONS
Option 1 - Approve the amendment to the Mall lease for a contract through December 2007, with
the subsequent ability for either party to terminate the agreement by giving a 6-month notice.
Option 2 - Reject the amendment to lease and vacate City Hall in the Mall.
RECOMMENDATION
Staff recommends Option 1, to continue to provide customer service at the Mall location, but
recommends continued review and analysis of the costs and benefits of the satellite facility to
determine if the City should exercise the early termination clause.
AIS - City Council Agenda Item
October 3, 2006
Page 2 of2
PRIOR ACTION/REVIEW (Council.. Boards.. Commissions)
In 2002, City Hall in the Mall was relocated within the Golden Triangle Mall. At that time,
closing the satellite facility was considered, as the City faced additional costs as it related to the
relocation and remodel of the new space. On December 9,2002, the Public Utility Board
approved a temporary lease with the agreement that a permanent lease would be adopted to
protect our investment in remodeling. On May 13,2003, City Council Ordinance 2003-113
approved a three-year lease between the City of Denton, Texas and the Denton Mall Company,
L.P. for the space currently occupied by City Hall in the Mall located at the Golden Triangle
Mall.
FISCAL INFORMATION
Utility Customer Service Department has budgeted FY 2006/07 for first year lease payments.
The total cost of the 3-year lease for base rent is $54,463, incidental expenses are estimated at
$80,640, for a total amount of$135,103.
BID INFORMATION
Not Applicable
EXHIBITS
1. Ordinance
2. Agreement
3. Minutes
Respectfully prepared and submitted by,
(f},4t~
Charles C. Atkinson
Utilities and Customer Service Manager
s: \Our Documents\Ordinances\06\City Hall in the Mall Amendment.doc
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A LEASE
AMENDMENT BETWEEN THE CITY OF DENTON AND F:MP DENTON, L.P., FOR THE
CITY HALL IN THE GOLDEN TRIANGLE MALL; AUTHORIZING THE EXPENDITURE
OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HERBY ORDAINS:
SECTION 1~ The City Manager, or his designee, is hereby authorized to execute an
amendment to the lease agreement between the City and FMP Denton, L.P. for the City Hall in
the Golden Triangle Mall in substantially the form of the amendment attached hereto and made a
part of this ordinance for all purposes (the "~endment").
SECTION 2~ The City Manager, or his designee, is authorized to make the expenditures
as set forth in the Amendment..
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval~
PASSED AND APPROVED this the
day of
, 2006.
PERRY R~ McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDE Y ATTORNEY
BY:
mmitl1
....,.. ..
~.".
AMENDMENT TO LEASE
. . ..
. . . . ~ .. . .
. . I .
. .'. . 'This Amendinent to Lease ("Amendment") is entered into effective as of the ~
..... ....day of " .. 2006, by and between FMP Dentqn LP, a Delaware limited .'
· partnership ("Landlord") and the City of Denton, a municipal corporation ("Tenant").
. REelT ALS
.. .. A. Landlord is the original or successor landlord and Tenant is the original or . .
". successortenant under that certain Lease (the "Lease") dated June 25, 2003 pertaining to
. . ". ,'spac.e no. L-22A (the "Premises") at Golden Triangle Mall ("Shopping Center").' .
. '.
.. . .
..: B. . Landlord and Tenant .desire to amend the Lease on .the. terms and
:".conditions stated in this Amendment..
AGREEMENT .
. . .
. '. Now, therefore, in consideration of the foregoing and the mutual promises 'and
agreements contained herein, Landlord .and Ten~t agree as follows: .
.1.. Term Extension. The term of the Lease is hereby extended to include the
. time period from October 1, 2006 through September 30, 2009 (the "Extended Term").
2. Minimum Rent Tenant shall pay the following Minimum . Rent during the.. .:
. Extended Term:
Time Period Annual MinimUm Rent
Oct~.l, 2006-Sep.. 30, 2007 $17,- 620..00
'. Oct~ 1,.2007~Sep. 30,.2008 .$18,148.60
:. Oct~ 1, 2008-Sep.. 30, 2009..... $18,694..82'
Monthly Rent
. $1,468..33
$1,512.38
$1~557.90 .'.
. .,. . :... . 3. :. '.. .This. Agreement may.be.t~ated in whole or in part, in' wrlting, by . either party. -- . .
. in the. event of substantial . failure by the other' party. to fulfill its ()bl~gation~ under this .
. Agreement through no fault of the terminating party.... Provided, ..however,' that no such.
':'.:termination maybe affected, unless the other party is given: (1) written.notice (delivered by,..... .
. ....certified mail, return receipt request) of intent to terminate, and 'not .less than 30 calendar.' .' .
'..' ". .:' :'., days to. cure the failure,' and (2) an oppo~ty. for ~nsu1tation with the ..terminating party.'
. ....:priorto..t~a~on. . . .
, . .
_4.~Earlv Termmation Right. - At any time after December 31, 2007, either ...... .
'.Landlqrd or Tenant .shall have the one-time right to terminate .this '.Lease with. six:' (6)'
.>: ....~..months \Yritten'notice to the 'other party~ '. ..' . '. . . ...., . .
. . . .' . . ..5. .....Notices to Landlord. '..Until.Landlord or Tenant gives J;lotice'of different.
'. .....addresses for notic~s under ~the ,Lease', .~o~ces to Landlord and. Tenant sha11..be sent to the.
. .... fol1~wing a~dresses: . . '. . . .. .
. .... .
. .
. FMP penton LP: .
. ... . .. . .
,with a copy to: . .. FMP -Denton LP
. - .. ...
Exhibi1' 2.:.'
'. \. .
... ~ ."
. ..
. .
... .
. . . .
. .. .
. .
.' :".c/o Feldman Mall Properties, Ine, .
'. 2201 East Camelback Road, Suite 350.
'. :'Phoenix, Arizona 85016 .' . . -
.' .': .:'. Attn: Lease Administration
. '. F~: 602.277.7.774
. . .
.... Golden Triangle Mall .'
..... :' 2201 S. 1-35 E. .
. . .'. Dento11-, Texas -76203
..... Attn: General Manager .'
Fax.: 940-382-1990'
:. City of DentonlCity Attorney
:'. .215 E. McKinney
Denton, Tex~ 76201.
. Fax: 940.384.7923
. 5. Payment of Rent.-Rent payments should be paid to FMP Denton LP ~t the :
following address:
FMP Denton LP
. . P.O. Box 95000-2105
. .Philadelphia~ PA 19195-2105.
.6. Miscellaneous. Except as modified .by this Amendment, the Lease shall" " .
'. continue in full force and effect "A capitalized term used in this Amendment without
. . definition shall have the meaning stated in the Lease. This Amendment may be signed in
counterparts. This Amendment has been reached by negotiation and shall therefore -not
. '. be construed against any party based on such party or its counsel having participated in
the drafting of any p~ovision of this Amendment. This Amendment. and the ~ease
constitute the entire _ agreement between Landlord and Tenant regarding the Lease; all'
. other prior oral or written statements or agreements of any-nature are hereby supeiceded
in'. their entirety. '
. . ill .witness whereo~, Landlord. and Tenan_t have placed their signatures.
. . .
.---... - - - . ........ ..-
. ..' ..-.: '._..LANDLORD:. n_ .
. '..:'.PMP Denton LP, ...._
.....' '. a Delaware
. '.' Witnesses:
. . . .
. .. I . r.. .
. .
- ,
~\- ..,
:_:....~..........
. ..
. . .. ~ I .
. .
. .
".. .
. .
. . .
:'.: .:'City of Denton ..' ':. :.
. .
. . .
: ~
.. . I . . .
. .. ~ ."
. . .
. ...
. .
. '. Howard ~artin,. City Manager .
.. .. .
.~. ...
. .. .
.. . ". .
.. ~ . .. .
. .
. .. .
. .
L.._. ..._ . .:...... ...... _.._ .~.... ....._.... .._. .... ..
~ ., .
. l
r
. Attest:
.... Jennifer Walters, City-Sec~etary
By:
... Approved as to Legal Form:
. Edwin M. Snyd.er, City. Atto!"11ey .
.By:
. . .
. . . . .
. .
. . .
...... ..
.. .. : . ..
... .... .:.:. ..
.. .-'.. -: .
. ......................:..
. . .
. ...... -.... . .. . . ..... ..... . ..-, ...
. . .
~.... . . .
.. . ~..
. . .~. .
. . ... ..
AGENDA
PUBLIC UTILITIES BOARD
September 25,2006
After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was
present, the Presiding Officer of the Public Utilities Board convened into an Open Meeting on
Monday, September 25,2006 at 9:02 a.m. in the Service Center Training Room, City of Denton
Service Center, 901-A Texas Street, Denton.
Present:
Chair Newell, Bill Cheek, Phil Gallivan, John Baines, Bob Bland, and Randy
Robinson
Absent:
Dick Smith, excused
Ex Officio Member:
Howard Martin, City Manager
OPEN MEETING:
ITEMS FOR INDIVIDUAL CONSIDERATION:
2) Consider recommending approval ofa lease amendment for a 15 to 36 month lease extension
between the City of Denton and Feldman Mall Properties, L.P., for lease space number L-
22A know as City Hall in the Mall, located in the Golden Triangle Mall.
Charles Atkinson, Utilities and Customer Service Manager, reviewed additional information
requested by the Board during the September 25, 2006, meeting, specifically whether staff could
negotiate options in the lease and where the busiest areas were located that use the Mall.
Staff was able to extend the lease for three years with a one-time right after December 31, 2007
for either party to terminate the Lease by providing to the other six months prior written notice.
Atkinson then presented an analysis of current year daily mall activity occurring between the
hours of 10:00 a.m. to 5:00 p.m. and after 5:00 p.m., noting that Cycle 5, which is northern most
part of Denton, was the biggest user.
Board Member Bob Bland asked if were possible for all store front activities to be migrated to
the kiosk. Atkinson replied not at this time, but staff was exploring the possibility of doing that
in the future.
Board Member Robinson thought the lease option was good and would allow staff time to look
at the North side of town with its projected growth to determine if services would be needed.
Gallivan noted that the number of transaction at the mall totaled 82,000 versus 137,000 at City
Hall East.
Board Member Bill Cheek expressed a concern with the increase of traffic on Hickory Street if
the Mall office closed.
Exhibit 3
Draft Minutes of the Public Utilities Board
September 25,2006
Page 2 of2
Robinson suggested that staff design a survey for users to determine what and if activities
provided at the Mall could be done on line.
Bland moved to approve Option 1 with a second from Robinson. The motion was
approved by a vote of 6-0.
The meeting was adjourned by consensus at 9:44 a.m.
AGENDA INFORMATION SHEET
AGENDA DATE: October 3,2006
DEPARTMENT: Community Development
Howard Martin, 349-8232 ..
CM:
SUBJECT
Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to
execute an agreement between the City and Fred Moore Day Nursery School to provide for
improvements to the childcare facility at 821 Crosstimber Street, Denton, TX 76205; authorizing
the expenditure of funds therefore, not to exceed $195,000; and providing for an effective date.
BACKGROUND
Fred Moore Day Nursery School provides low-cost day care for low and moderate-income
households. Fred Moore is licensed by the Texas Department of Protective and Regulatory
Services.
City of Denton CDBG funds will be combined with Meadows Foundation funding that has been
requested by the school to complete facility improvements. Proposed improvements include the
following:
. Construction of two additional classrooms - one infant and one toddler
. Move the office to an alternate location
. Construct a gymnasium
. Construct and pave a new parking lot and drive approach
ESTIMATED PROJECT SCHEDULE
The project is currently in the planning stage. Bids will be prepared in the next few weeks with
construction beginning in December or January. All improvements should be completed by
October 2007.
PRIOR ACTION/REVIEW (Councils.. Boards.. Commissions)
The Community Development Advisory Committee recommended approval of funding for
improvements to the Fred Moore Day Nursery School facility. Funding for the project was
included in the City's 2006 Action Planfor Housing and Community Development. City Council
approved the Action Plan on May 16, 2006.
FISCAL INFORMATION
Community Development Block Grant funds have been allocated for the project. Community
Development staff costs to monitor construction and labor standards compliance is also paid
through CDBG.
EXHIBITS
1. Ordinance
2. Funding Agreement
3. Minutes from the March 2,2006 CDAC meeting
Prepared by:
Barbara Ross
Community Development Administrator
Janet Fitzgerald
Director of Parks and Recreation
S:\Our Docum.ent:s\Ordinances\06\fred moore ord 06 07.do::
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND THE FRED
MOORE DAY NURSERY SCHOOL TO PROVIDE FOR IMPROVEMENTS TO THE
CHILD CARE FACILITY AT 821 CROSSTIMBER STREET, DENTON, TX 76205;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE, NOT TO EXCEED
$195,000; AND PROVIDING AN EFFECTIVE DATE~
WHEREAS, the City Council has approved the 2006 Action Plan for Housing and
Community Development which includes $195,000 for improvements to the Fred Moore Day
Nursery School located at 821 Crosstimber Street; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1 ~ The City Manager is hereby authorized to execute the attached Agreement
between the City of Denton and the Fred Moore Day Nursery School to provide for
improvements to the childcare facility noted therein~
SECTION 2. The City Council hereby authorizes the City Manager to expend funds in
the manner and amount specified in the Agreement, not to exceed $195,000 and to take any other
actions necessary to complete the City's obligations under the Agreement.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the
day of
, 2006.
PERRY R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDE ITY TORNEY
BY:
Exhibit 1
Form Lettel's 1
2006-2007
AGREEMENT BETWEEN THE CITY OF DENTON
AND THE FRED MOORE DAY NURSERY SCHOOL
This Agreement is made and entered into by and between the City of Denton, a Texas
municipal corporatio~ acting by and through its City Manager, pursuant to ordinance, hereinaf-
ter referred to as CITY, and Fred Moore Day Nursery School, 821 Crosstirnber Street, Denton
TX 76205, a Texas non-profit corporation, hereinafter referred to as SUBRECIPIENT..
WHEREAS, CITY has received certain funds from the u.S. Department of Housing and
Urban Development under Title I of the Housing and Community Development Act of 1974, as
amended, CDBG Program, CFDA Number 14-218; and
WHEREAS, CITY has adopted a budget for such funds and included therein an author-
ized budget for expenditure of funds for; and
WHEREAS, CITY has designated the Community Development Division as the division
responsible for the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, CITY wishes to engage SUBRECIPIENT to carry out such project;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to
the mutual obligations and to the performance and accomplishment of the conditions hereinafter
described.
1.
TERM
This Agreement shall commence on or as of October 1, 2006, and shall terminate on Sep-
tember 30, 2016, unless sooner terminated in accordance with Section 26 "Termination"..
2.
RESPONSffiILITIES
SUBRECIPIENT hereby accepts the responsibility for the performance of all services
and activities described in the Scope of Services attached hereto as Attachment A, and incorpo-
rated herein by reference, in a satisfactory and efficient manner as determined by CITY, in ac-
cordance with the terms herein. CITY will consider SUBRECIPIENT's executive officer to be
SUBRECIPIENT's representative responsible for the management of all contractual matters per-
taining hereto, unless written notification to the contrary is received from SUBRECIPIENT, and
approved by CITY.
The CITY's Community Development Administrator will be CITY's representative re-
sponsible for the administration of this Agreement.
Exhibit 2
SUBRECIPIENT certifies that the activities carried out with Community Development
Block Grant funds shall meet the program's National Objective of benefit to low and moderate-
income persons. SUBRECIPIENT shall provide services to persons whose income is equal to or
lower than 80% of the median income of the Dallas standard metropolitan statistical area. To
accomplish this, the SUBRECIPIENT shall use the current applicable income limits published
by the Department of Housing and Urban Development for lower income housing assistance un-
der Section 8 of the United States Housing Act of 1937. Income eligibility shall be determined
by the sum of the gross income of all individuals residing in the household. Services must be
provided directly to or on behalf of specific identified eligible clients. Eligibility documentation
must be included in each client's file and updated annually or services must be provided to a cli-
entele that is within a "presumed benefit" category"
3.
CITY'S OBLIGATION
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred pursu-
ant and in accordance with the project budget attached hereto as Attachment B and the
Scope of Services herein attached as Attachment A and incorporated herein by reference.
Notwithstanding any other provision of the Agreement, the total of all payments and
other obligations made or incurred by CITY hereunder shall not exceed the sum of
$195,000"
B. Measure of Liability. In consideration of full and satisfactory services and activities
hereunder by SUBREeIPIENT and receipt of a requisition for payment with appropriate
documentation of expenditures, CITY shall make payments to SUBRECIPIENT based on
the Budget attached hereto and incorporated herein for all purposes as Attachment B,
subject to the limitations and provisions set forth in this Section and Section 7 of this
Agreement. Payments may be contingent upon certification of the SUBRECIPIENT's fi-
nancial management system in accordance with the standards specified in OMB Circular
A-IIO.
(1) The parties expressly understand and agree that CITY's obligations under this
Section are contingent upon the actual receipt of adequate Community Develop-
ment Block Grant (CDBG) funds to meet CITY's liabilities under this Agreement.
If adequate funds are not available to make payments lUlder this Agreement,
CITY shall notify SUBRECIPIENT in writing within a reasonable time after such
fact has been determined. CITY may, at its option, either reduce the amount of its
liability, as specified in Subsection A of this Section or terminate the Agreement.
If CDBG funds eligible for use for purposes of this Agreement are reduced, CITY
shall not be liable for further payments due to SUBRECIPIENT under this Agree-
ment"
(2) It is expressly understood that this Agreement in no way obligates the General
Fund or any other monies or credits of the City of Denton"
Page 2
(3) CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed or is subject to payment or reimbursement,
from any other source;
(b) was incurred prior to the beginning date, or after the ending date specified
in Section 1;
(c) is not in strict accordance with the terms of this Agreement, including all
attaclnnents .attached hereto;
(d) has not been billed to CITY within 90 calendar days following billing to
SUBRECIPIENT, or termination of the Agreement, whichever date is ear-
lier; or
(e) is not an allowable cost as defined by Section 11 of this Agreement or the
project budget.
(4) CITY shall not be liable for any cost or portion thereof which is incurred with re-
spect to any activity of SUBRECIPIENT requiring prior written authorization
from CITY, or after CITY has requested that SUBRECIPIENT furnish data con-
.cerning such action prior to proceeding further, unless and until CITY advises
SUB RECIPIENT to proceed.
(5) CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or ser-
vices.
4.
COMPLIANCE WITH FEDERAL, STATE AND LOCAL. LAWS
A. SUBRECIPIENT understands that funds provided to it pursuant to this Agreement are
fimds which have been made available to CITY by the Federal Government (U.S. Department of
Housing and Urban Development) under the Housing and Community Development Act of .
1974, as amended, in accordance with an approved Grant Application and specific assurances.
Accordingly, SUBRECIPIENT assures and certifies that it will comply with the requirements of
the Housing and Commwrity Development Act of 1974 (p.L. 93-383) as amended and with regu-
lations promulgated thereunder, and codified at 24 CFR 570. The foregoing is in no way meant
to constitute a complete compilation of all duties imposed upon SUBRECIPIENT by law or ad-
ministrative ruling, or to narrow the standards which SUBRECIPIENT must follow.
SUBRECIPIENT further accrues and certifies that if the regulations and issuances prom-
ulgated pursuant to the Act are amended or revised, it shall comply with them, or notify CITY, as
provided in Section 23 of this Agreement.
SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements
of the Office of Management and Budget Circulars Nos. A-122, A-87, A-133 and the regulations
at 24 CFR Part 84 as applicable.
Page 3
B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of
Texas and ordinances of the City of Denton..
c. SUBRECIPIENT is required to comply with the applicable uniform administrative re-
quirements as described in 24 CFR 570.502. 570.505 and 24 CFR 570 subpart K with the
exceptions noted below:
(1) SUBRECIPIENT does not assume CITY'S environmental responsibilities
described at CFR 570..604; and
(2) SUBRECIPIENT does not assume the CITY's responsibility for initiating
the review process under the provisions of 24 CFR Part 52..
D. SUB RECIPIENT agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis-Bacon Act as amended, the provisions of the Contract Work
Hours Safety Standards Act, the Copeland "Anti-Kickback Act (40 U~S.C. 276a-276a-5;
40 use 327 and 40 use 276c) and all other applicable Federal, state and local laws and
regulations pertaining to labor standards and insofar as those acts apply to the perform-
ance of this contract~ SUBRECIPIENT will work. with CITY to obtain and maintain
documentation of compliance.
E~ SUBRECIPIENT agrees to comply with the provisions of Section 3, the regulations set
forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the
execution of this agreement, and shall also be binding on any of the SUBRECIPIENT'S
subcontractors~ The SUBRECIPIENT certifies that no contractual or other disability ex-
ists which would prevent compliance with these requirements. SUBRECIPIENT further
agrees to include a statement in all subcontracts requiring compliance with Section 3 and
requiring subcontractors, to the greatest extent feasible. to provide opportunities for
training and employment to low and moderate-income individuals that are residents of
the proj ect area~
F.. CONTRACTOR certifies that it is not currently listed on the General Services Administra-
tion's List of Parties Excluded from Federal Procmement or Nonprocurement Programs in
accordance with Executive Orders 12549 and 12689 and will not enter into agreements to
expend Federal funds with contractors that are currently listed.
5.
REPRESENTATIONS
A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to
any proper, appropriate and official motion, resolution or action passed or taken, to enter
into this Agreement.
B~ The person or persons signing and executing this Agreement on behalf of SUBRECIPI~
ENT, do hereby warrant and guarantee that he, she, or they have been fully authorized by
Page 4
SUBRECIPIENT to execute this Agreement on behalf of SUBRECIPIENT and to validly
and legally bind SUBRECIPIENT to all terms, performances and provisions herein set
forth.
c. CITY shall have the righ~ at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either SUBRE-
CIPIENT or the person signing the Agreement to enter into this Agreement. SUBRE-
CIPIENT is liable to CITY for any money it has received from CITY for performance of
the provisions of this Agreement if CITY has suspended or terminated this Agreement for
the reasons enumerated in this Section.
D. SUBRECIPIENT agrees that the funds and resources provided to SUBRECIPIENT under
the terms of this Agreement will in no way be substituted for funds and resources from
other sources, nor in any way serve to reduce the resources, services, or other benefits
which would have been available to, or provided through, SUBRECIPIENT had this
Agreement not been executed.
6.
PERFORMANCE BY SUBRECIPIENT
SUBRECIPIENT will provide, oversee, administer, and carry out all of the activities and
services set out in the Work Statement, attached hereto and incorporated herein for all pmposes
as Attachment A, utilizing the funds described in Attachment B, attached hereto and incorpo-
rated herein for all purposes and deemed by both parties to be necessary and sufficient payment
for full and satisfactory performance of the program, as determined solely by CITY and in ac-
cordance with all other terms, provisions and requirements of this Agreement.
No modifications or alterations may be made in the Scope of Services without the prior
written approval of the City's Community Development Administrator.
7.
PAYMENTS TO SUBRECIPIENT
A. The CITY shall pay to the SUBRECIPIENT a maximum amount of money totaling
$195,000 for activities eanied out under this Agreement. CITY will pay these funds on a
reimbursement basis to the SUBRECIPIENT within twenty days after CITY has received
supporting documentation of eligible expenditures. SUBRECIPIENT's failure to request
reimbursement on a timely basis may jeopardize present or future funding.
Funds are to be used for the sole purpose of carrying out the activities described in the
Scope of Services herein attached as Attachment A and based on the budget herein at-
tached as Attachment B.
Page 5
B. Excess Payment. SUBRECIPIENT shall refund to CITY within ten 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 SUBRECIPIENT; 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.
c. Disallowed Costs. Upon termination of this Agreement, should any expense or change
for which payment has been made be subsequently disallowed or disapproved as a result
of any auditing or monitoring by CITY, the Department of Housing and Urban Develop-
ment, or any other Federal agency, SUBRECIPIENT will refund such amount to CITY
within ten working days of a written notice to SUBRECIPIENT, which specifies the
amount disallowed. Refunds of disallowed costs may not be made from these or any
funds received from or through CITY
D. Reversion of Assets. SUBRECIPIENT, upon expiration of this Agreement shall transfer
to the CITY any CDBG funds on hand at the time of expiration and any accounts receiv-
able attributable to the use of CDBG funds. If CITY finds that SUBRECIPIENT is un-
willing and/or unable to comply with any of the terms of this Contract, CITY may require
a refund of any and all money expended pursuant to this Contract by SUBRECIPIENT,
as well as any remaining unexpended funds which shall be refunded to CITY within ten
working days of a written notice to SUBRECIPIENT to revert these financial assets. The
revision of these financial assets shall be in addition to any other remedy available to
CITY either at law or in equity for breach of this Contract.
D. Obligation of Funds. In the event that actual expenditure rates deviate from SUBRE-
CIPIENT's provision of a -corresponding level of performance, as specified in Attach-
ment A, CITY hereby reserves the right to reappropriate or recapture any such underex-
pended funds..
E. Contract Close Out. SUB RECIPIENT shall submit the Agreement close out package to
CITY, together with a final expenditure report, for the time period covered by the last in-
voice requesting reimbursement of funds under this Agreement, within 15 working days
following the close of the Agreement period. SUBRECIPIENT shall utilize the form
agreed upon by CITY-and SUBRECIPIENT.
8.
WARRANTIES
SUBRECIPIENT represents and warrants that:
A. All information, reports and data heretofore or hereafter requested by CITY and fur-
Page 6
nished 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 fmancial condition of SUBRECIPI-
ENT on the date shown on said report, and the results of the operation for the period cov-
ered by the report, and that since said date, there has been no material change, adverse or
otherwise, in the financial condition of SUB RECIPIENT.
c. No litigation or legal proceedings are presently pending or threatened against SUBRE-
CIPIENT.
D. None of the provisions herein contravene or are in conflict with the authority lUlder which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or
agreement of SUB RECIPIENT ..
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments here-
under, and has taken all necessary action to authorize such acceptance lUlder the terms
and conditions of this Agreement..
F. None of the assets of SUB RECIPIENT is subject to any lien or encumbrance of any char-
acter, except for current taxes not delinquent, except as shown in the financial statements
furnished by SUBRECIPIENT to CITY~
G. 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.
9.
COVENANTS
A. During the period of time that payment may be made hereunder and so long as any pay-
ments remain unliquidated, SUBRECIPIENT shall not, without the prior written consent
of the Community Development Administrator or her authorized representative:
(1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the
assets of SUBRECIPIENT now owned or hereafter acquired by it, or permit any
pre-existing mortgages, liens, or other encumbrances to remain on, or attached to,
any assets of SUBRECIPIENT which are allocated to the performance of this
Agreement and with respect to which CITY has ownership herelUlder.
Page 7
(2) Sell, assign, pledge, transfer or othetwise dispose of accounts receivables, notes
or claims for money due or to become due..
(3) Sell, convey, or lease all or substantial part of its assets.
(4) Make any advance or loan to, or incur any liability for any other firm, person, en-
tity or corporation as guarantor, surety, or accommodation endorser.
(4) Sell, donate, loan or transfer any equipment or item of personal property pur-
chased with funds paid to SUBRECIPIENT by CITY, unless CITY authorizes
such transfer.
(5) Enter into any subcontracts with any agency or individual in the performance of
this contract without the written consent of the Grantee prior to the execution of
such an agreement.
B. SUBRECIPIENT agrees, upon written request by CITY, to require its employees to at-
tend training sessions sponsored by the Community Development Division.
10.
ALLOWABLE COSTS
A. Costs shall be considered allowable only if incurred directly and specifically in the per-
formance of and in compliance with this Agreement and in conformance with the stan-
dards and provisions of Attachments A and B.
B. Approval of SUBRECIPIENT's budget, Attachment B, does not constitute prior written
approval, even though certain items may appear herein. CITY's prior written authoriza-
tion is required in order for the following to be considered allowable costs:
(1) CITY shall not be obligated to any third parties, including any contractors of
SUBRECIPIENT, and CITY funds shall not be used to pay for any contract ser-
vice extending beyond the expiration of this Agreement.
Written requests for prior approval are SUBRECIPIENT's responsibility and shall be
made within sufficient time to permit a thorough review by CITY. SUBRECIPIENT
must obtain written approval by CITY prior to the commencement of procedures to so-
licit or purchase services, equipment, or real or personal property. Any procurement or
purchase which may be approved under the terms of this Agreement must be conducted
in its entirety in accordance with the provisions of this Agreement.
11.
PROGRAM INCOME
Page 8
A~ For purposes of this Agreement, program income means earnings of SUBRECIPIENT
realized from activities resulting from this Agreement or from SUBRECIPIENT's man-
agement of funding provided or received hereunder. Such earnings include, but are not
limited to, income from interest, usage or rental or lease fees, income produced from con-
tract-supported services of individuals or employees or from the use or sale of equipment
or facilities of SUBRECIPIENT provided as a result of this Agreement, and payments
from clients or third parties for services rendered by SUBRECIPIENT under this Agree-
ment~
B~ SUBRECIPIENT shall maintain records of the receipt and disposition of program income
in the same marmer as required for other contract funds, and reported to CITY in the for-
mat prescribed by CITY. CITY and SUBRECIPIENT agree, that any fees collected for
services performed by SUBRECIPIENT shall be used for payment of costs associated
with service provision. Revenue remaining after payment of all program expenses for
service provision shall be considered Program Income and shall be subject to all the re-
quirements of this Agreement and the regulations found at CFR, Section 570.504.
c. SUBRECIPIENT shall include this Section in its entirety in all of its contracts which in-
volve other income-producing services or activities.
D. It is SUBRECIPIENT's responsibility to obtain from CITY a prior determination as to
whether or not income arising directly or indirectly from this Agreement, or the perform-
ance thereof, cons~tutes program income~ SUBRECIPIENT is responsible to CITY for
the repayment of any and all amounts determined by CITY to be program income, unless
otherwise approved in writing by CITY.
12.
MAINTENANCE OF RECORDS
A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate,
and complete disclosure of the status of the funds received under this Agreement, in
compliance with the provisions of Attachment B, attached hereto, and with any other ap-
plicable Federal and State regulations establishing standards for financial management
including OMB Circulars A-87, A-122, A-I33 and the regulations at 24 CFR Part 84 as
applicable; Title 24 CFR Section 570.502 (b); Title 24 CFR Sections 570.504 and
570.506 as they pertain to costs incurred, audits, program income, administration and
other activities and functions. SUBRECIPIENT's record system shall contain sufficient
documentation to provide in detail full support and justification for each expenditure.
Nothing in this Section shall be construed to relieve SUBRECIPIENT of fiscal account-
ability and liability under any other provision of this Agreement or any applicable law~
SUBRECIPIENT shall include the substance of this provision in all subcontracts.
B~ SUBRECIPIENT agrees to retain all books, records, documents, reports, and written ac-
counting procedures pertaining to the operation of programs and expenditures of funds
under this Agreement for five years.
Page 9
C.. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of re-
sponsibility for retaining accurate and current records, which clearly reflect the level and
benefit of services provided under this Agreement~
D. At any reasonable time and as often as CITY may deem necessary, the SUBRECIPIENT
shall make available to CITY, HUD, or any of their authorized representatives, all of its
records and shall permit CITY, HOD, or any of their authorized representatives to audit,
examine, make excerpts and copies of such records, and to conduct audits of all contracts,
invoices, materials, payrolls, records of personnel, conditions or employment and all
other data requested by said representatives.
13.
REPORTS AND INFORMATION
At such times and in such form as CITY may require, SUBRECIPIENT shall furnish
such statements, records, data and information as CITY may request and deem pertinent to mat-
ters covered by this Agreement..
SUBRECIPIENT shall submit quarterly beneficiary and financial reports to CITY no less
than once each three months.. The beneficiary report shall detail client information, including
race, income, female head of household and other statistics required by CITY. The financial re-
port shall include information and data relative to all progranunatic and financial reporting as of
the beginning date specified in Section 1 of this Agreement. Beneficiary and fmancial reports
shall be due to City within 15 working days after the completion of each quarter..
Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit an audit
conducted by independent examiners in accordance with Generally Accepted Accounting Princi-
ples. If the SUBRECIPIENT receives and/or expends more than $500,000 in federal funding,
the audit must be conducted in accordance with OMB Circular A-I33 as applicable within thirty
days after receipt of such audit.
14.
MONITORING AND EVALUATION
A.. CITY shall perform on-site monitoring of SUBRECIPIENT's performances under this
Agreement~
B. SUBRECIPIENT agrees that CITY may carry out monitoring and evaluation activities to
ensure adherence by SUBRECIPIENT to the Scope of Services, and Program Goals and
Objectives, which are attached hereto as Attachment A, as well as other provisions of this
Agreement
c. SUBRECIPIENT agrees to cooperate fully with CITY in the development, implementa-
tion and maintenance of record-keeping systems and to provide data determined by CITY
Page 10
to be necessary for CITY to effectively fulfill its monitoring and evaluation responsibili-
ties.
D. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay CITY
in such monitoring and to designate one of its staff to coordinate the monitoring process
as requested by CITY staff.
G. After each official monitoring visit, CITY shall provide SUBRECIPIENT with a written
report of monitoring findings documenting findings and concerns that will require a writ-
ten response to the City. An acceptable response must be received by the City within 60
days from the SUBRECIPIENT's receipt of the monitoring report or audit review letter.
Future contract payments can be withheld for SUBRECIPIENT's failure to submit a re-
sponse within 60 days.
H. SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by any
of SUBRECIPIENT's funding or regulatory bodies to CITY within five working days of
receipt by SUBRECIPIENT.
I. SUBRECIPIENT will monitor all subcontracted services on a regular basis to assure
contract compliance. Results of monitoring efforts shall be swnmarized in written re-
ports and supported with documented evidence of follow-up actions taken to correct ar-
eas of noncompliance..
15.
DURECTORS'NUEETlNGS
During the terms of this Agreement, SUB RECIPIENT shall cause to be delivered to
CITY copies of all notices of meetings of its Board of Directors, setting forth the time and place
thereof. 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. - SUBRECIPIENT
understands and agrees that CITY representatives shall be afforded access to all of the Board of
Directors' meetings.
Minutes of all meetings of SUBRECIPIENT' s governing body shall be available to CITY
within ten days after Board approval.
16.
INSURANCE
A. SUBRECIPIENT shall observe sound business practices with respect to providing such
bonding and insurance as would provide adequate coverage for services offered under
this Agreement.
B. The premises on and in which the activities described in Attaclnnent A are conducted,
and the employees conducting these activities, shall be covered by premise liability in-
Page 11
surance, commonly referred to as "Owner/Tenant" coverage with CITY named as an ad-
ditional insured. Upon request of SUBRECIPIENT, CITY may, at its sole discretion, ap-
prove alternate insurance coverage arrangements.
c. SUBRECIPIENT will comply with applicable workers' compensation statues and will
obtain employers' liability coverage where available and other appropriate liability cov-
erage for program. participants, if applicable.
D~ SUBRECIPIENT will maintain adequate and continuous liability insurance on all vehi-
cles owned, leased or operated by 8UBRECIPIENT. All employees of SUBRECIPIENT
who are required to drive a vehicle in the normal scope and course of their employment
must possess a valid Texas driver's license and automobile liability insurance. Evidence
of the employee's current possession of a valid license and insurance must be maintained
on a current basis in SUBRECIPIENT's files.
E~ Actual losses not covered by insurance as required by this Section are not allowable costs
under this Agreement, and remain the sole responsibility of SUBREC IP lENT ·
F. The policy or policies of insurance shall contain a clause which requires that CITY and
SUBRECIPIENT be notified in writing of any cancellation of change in the policy at
least 30 days prior to such change or cancellation.
17.
CIVIL RIGHTS I EQUAL OPPORTUNITY
A. SUBRECIPIENT shall comply with all applicable equal employment opportunity and
affirmative action laws or regulations. The SUBRECIPIENT shall not discriminate
against any employee or applicant for employment because ofmee, color, creed, religion,
national origin, gender, age or disability. The SUBRECIPIENT will take affirmative ac-
tion to insure that all employment practices are free from such discrimination. Such em-
ployment practices include but are not limited to the following: hiring, upgrading, demo-
tion, transfer, recruitment or recruitment advertising, layoff, termination, rates of payor
other forms of compensation and selection for training, including apprenticeship..
B. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Sec-
tion 109 of Title 1 of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities
Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 and Executive
Order 11246 as amended by Executive Orders 11375 and 12086.
c. SUBRECIPIENT will furnish all information and reports requested by the CITY, and
will permit access to its books, records, and accounts for purposes of investigation to as-
certain compliance with local, state and Federal rules and regulations.
Page 1.2
D. In the event of SUBRECIPIENT's non-compliance with the non-discrimination require-
ments, CITY may cancel or terminate the Agreement in whole or in part, and SUBRE-
CIPIENT may be barred from fwther contracts with CITY.
18.
PERS.ONNEL POLICIES
Personnel policies shall be established by SUBRECIPIENT and shall be available for ex-
amination.. Such personnel policies shall:
A.. Be no more liberal than CITY's personnel policies, procedures, and practices, including
policies with respect to employment, salary and wage rates, working hours and holidays,
fringe benefits, vacation and sick leave privileges, and travel; and
B. Be in writing and shall be approved by the governing body of SUBRECIPIENT and by
CITY..
19.
CONFLICT OF INTEREST
A. SUBRECIPIENT covenants that neither it nor any member of its governing body preswo
ently 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.
SUBRECIPIENT 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. SUBRECIPIENT fwther covenants that no member of its governing body or its staff,
contractors or employees shall possess any interest in or use his position for a purpose
that is or gives the appearance of being motivated by desire for private gain for himself,
or others, particularly those with which he 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 or her.personal interest or the interest in any corporation, partnership, or
association in which he or she has a direct or indirect interest.
20.
NEPOTISM
SUBRECIPIENT shall not employ in any paid capacity any person who is a member of
the immediate family of any person who is currently employed by SUB RECIPIENT, or is a
Page 13
member of SUBRECIPIENT's governing board.. The term "member of immediate family" in-
cludes: wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, lUlcle, nephew,
niece, step-parent, step-child, half-brother and. half-sister..
21.
POLmCAL OR SECTARIAN ACTIVITY
A.. Neither the funds advanced pursuant to this Agreement, nor any personnel which may be
employed by the SUBRECIPIENT with funds advanced pursuant to this Agreement shall be in
any way or to any extent engaged in any conduct or political activity in contravention of Chapter
15 of Title 5 of the United States Code.
B.. The SUBRECIPIENT is prohibited from using funds provided herein or personnel em-
ployed in the administration of the program for: political activities; sectarian or religious activi-
ties, lobbying, political patronage or nepotism activities~
c. The SUBRECIPIENT agrees that none of the funds or services provided directly or indi-
rectly under this Agreement shall be used for any partisan political activity or to further the elec-
tion of defeat of any candidate for public office, or for publicity, lobbying and/or propaganda
purposes designed to support or defeat pending legislation~ Employees of the SUBRECIPIENT
connected with any activity that is funded in whole or in part by funds provided to SUBRECIPI-
ENT under this Agreement may not under the term of this Agreement:
1. Use their official position or influence to affect the outcome of an election or nomi-
nation.
2. solicit contributions for political purposes; or
3.. take an active part in political management or in political campaigns..
SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein as
Attachment "C'.' and if necessary, the Disclosure of Lobbying Activities provided by the CITY..
22.
PUBLICITY
A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities. con-
ducted by SUBRECIPIENT under this Agreement. In any news release, sign, brochure,
or other advertising medimn, disseminating information prepared or distributed by or for
SUBRECIPIENT, the advertising medium shall state that the U.S. Department of Hous-
ing and Urban Development's Community Development Block Grant Program funding
through the City of Denton has made the project possible.
B. All published material and written reports submitted under this project must be originally
developed material unless otherwise specifically provided in this Agreement. When ma-
terial not originally developed is included in a report, the report shall identify the source
in the body of the report or by footnote. This provision is applicable when the material is
Page 14
in a verbatim or extensive paraphrase format~
All published material submitted under this project shall include the following reference
on the front cover or title page:
This document is prepared in accordance with the City of Denton's Com-
munity Development Block Grant Program, with funding received from
the United States Department of Housing and Urban Development~
c. All reports, dOClUllents, studies, charts, schedules, or other appended documentation to
any proposal, content of basic proposal, or contracts and any responses, inquiries, corre-
spondence and related material submitted by SUBRECIPIENT shall become the property
of CITY upon receipt~
23.
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. SUBRECIPIENT may not make transfers between or among approved line items within
budget categories set forth in Attachment B without prior written approval of CITY.
SUBRECIPIENT shall request, in writing, the budget revision in a form prescribed by
CITY, and such request for revision shall not increase the total monetary obligation of
CITY under this Agreement. In addition, budget revisions cannot significantly change the
nature, intent, or scope of the program funded nnder this Agreement.
c. SUBRECIPIENT will submit revised budget and program. information, whenever the
level of funding for SUBRECIPIENT or the program(s) described herein is altered ac-
cording to the total levels contained in any portion of Attachment B.
D. 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 writ-
ten amendment hereto, and shall become a part of the Agreement on the effective date
specified by the law or regulation~
E~ CITY may, from time to time during the term of the Agreement, request changes in At-
tachment A, which may include an increase or decreased in the amount of SUBRECIPI-
ENT's compensation. Such changes shall be incorporated in a written amendment hereto,
as provided in Subsection A of this Section.
Page 15
F ~ Any alterations, deletion, or additions to the Contract Budget Detail incorporated in At-
tachment B shall require the prior written approval of CITY"
G~ SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for
work performed under this Agreement at least 30 calendar days in advance of the change~
H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board
composition..
I~ It is expressly understood that neither the performance of Attachment A for any program
contracted hereunder nor the transfer of fimds between or among said programs will be
permitted.
24.
SUSPENSION OF FUNDING
Upon determination by CITY of SUBRECIPIENT's failure to timely and properly per-
form each of the requirements, time conditions and duties provided herein, CITY, without limit-
ing any rights it may otherwise have, may, at its discretion, and upon ten working days written
notice to SUBRECIPIENT, withhold finther payments to SUBRECIPIENT. Such notice may be
given by mail to the Executive Officer and the Board of Directors of SUB RECIPIENT" The no-
tice shall set forth the default or failure alleged, and the action required for cure..
The period of such suspension shall be of such duration as is appropriate to accomplish
corrective action, but in no event shall it exceed 30 calendar days.. At the end of the suspension
period, if CITY determines the default or deficiency has been satisfied, SUBRECIPIENT may be
restored to full compliance status and paid all eligible funds withheld or impounded during the
suspension period.. If however, CITY determines that SUBRECIPIENT has not come into com-
pliance, the provisions of Section 26 may be effectuated"
25.
TERMINATION
A. CITY may terminate this Agreement for cause under any of the following reasons or for
other reasons not specifically enmnerated in this paragraph:
(1) SUBRECIPIENT's failure to attain compliance during any prescribed period of sus-
pension as provided in Section 24.
(2) SUBRECIPIENT's failure to materially comply with any of the terms of this Agree-
ment..
(3) SUBRECIPIENT's violation of covenants, agreements or guarantees of this Agree-
ment~
Page 16
(4) Termination or reduction of funding by the United States Department of Housing and
Urban Development.
(5) Finding by CITY that SUBRECIPIENT:
(a) is in such unsatisfactory fmancial condition as to endanger performance
under this Agreement;
(b) has allocated inventory to this Agreement substantially exceeding reason-
able requirements;
( c) is delinquent in payment of taxes, or of costs of performance of this
Agreement in the ordinary course of business.
(6) Appointment of a trustee, receiver or liquidator for all or substantial part of SUBRE-
CIPIENT's property, or institution of bankruptcy, reorganization, rearrangement of or
liquidation proceedings by or against SUBRECIPIENT.
(7) SUBRECIPIENT's inability to conform to changes required by Federal, State and 10-
callaws or regulations as provided in Section 4, and Section 2 of this Agreement.
(8) The commission of an act of bankruptcy.
(9) SUBRECIPIENT's violation of any law or regulation to which SUB RECIPIENT is
bound or shall be bound under the terms of the Agreement.
CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and
the effective date of termination. Simultaneous notice of pending termination maybe made to
other funding source specified in Attachment B.
B. CITY may terminate this Agreement for convenience at any time. If CITY terminates this
Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed the
total of accrued expenditures as of the effective date of termination. In no event will this
compensation exceed an amount which bears the same ratio to the total compensation as
the services actually.performed bears to the total services of SUBRECIPIENT covered by
the Agreement, less payments previously made.
c. SUB RECIPIENT may terminate this Agreement in whole or in part by written notice to
CITY, if a termination of outside funding occurs upon which SUBRECIPIENT depends
for performance hereunder. SUBRECIPIENT may opt, within the limitations of this
Agreement, to seek an alternative funding source, with the approval of CITY, provided
the termination by the outside funding source was not occasioned by a breach of contract
as defined herein or as defined in a contract between SUBRECIPIENT and the funding
source in question.
Page 1 7
SUBRECIPIENT may terminate this Agreement upon the dissolution of SUBRECIPI-
ENT's organization not occasioned by a breach of this Agreement.
D~ Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw or other-
wise terminate any outstanding orders or subcontracts, which relate to the performance of
this Agreement. CITY shall not be liable to SUBRECIPIENT or SUBRECIPIENT's
creditors for any expenses, encumbrances or obligations whatsoever incurred after the
termination date listed on the notice to terminate referred to in this paragraph..
E. Notwithstanding any exercise by CITY of its right of suspension or termination,
SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by
CITY by virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may
withhold any reimbursement to SUBRECIPIENT until such time as the exact amount of
damages due to CITY from SUBRECIPIENT is agreed upon or otherwise determined.
16.
NOTmCATION OF ACTION BROUGHT
In the event that any claim, demand, suit or other action is made or brought by any per-
800(S), firm corporation or other entity against SUBRECIPIENT, SUBRECIPIENT shall give
written notice thereof to CITY within two working days after being notified of such claim, de-
mand, suit or other action. Such notice shall state the date and hour of notification of any such
claim, demand, suit or other action; the names and addresses of the person(s), firm, corporation
or other entity making such claim, or that instituted or threatened to institute any type of action
or proceeding; the basis of such- claim, action or proceeding; and the name of any person(s)
against whom such claim is being made or threatened. Such written notice shall be delivered ei-
ther personally or by mail.
27.
INDEMNIFICATION
A. It is expressly understood and agreed by both parties hereto that CITY is eontract~
- ing with SUBRECIPIENT as an independent SUBRECIPIENT and that as such,
SUBRECIPIENT shaD save and hold CITY, its officers, agents and employees
harmless from aD liability of any nature or kind, including costs and expenses for,
or on account of, any claims, audit exeeptions, demands, suits or damages of any
character whatsoever resulting in whole or in part from the performance or omis-
sion of any employee, agent or representative of SUBRECIPIENT.
B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold
harmless CITY its agents, employees, or SUBRECIPIENTs from any and aD claims,
suits, eauses of action, demands, damages, losses, attorney fees, expenses, and Habil-
ity arising out of the use of these contraded funds and program administration and
Page 18
implementation except to the extent caused by the wiUful act or omission of CITY,
its agents, employees, or SUBRECIPIENTs.
28.
NON-RELIGIOUS ACTIVITES
The SUBRECIPIENT will provide all services under this Agreement in a manner that is exclu-
sively non-religious in nature and scope. There shall be no religious services, proselytizing, in-
struction or any other religious preference, influence or discrimination in connection with pro-
viding the services hereunder.
29.
MISCELLANEOUS
A. SUBRECIPIENT 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 com-
pany 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 re-
maining 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 SUBRECIPIENT herelUlder, or any other act or failure
of CITY to insist in anyone or more instances upon the terms and conditions of this
Agreement constitute or be construed in any way to be a waiver by CITY of any breach
of covenant or default which may then or subsequently be committed by SUBRECIPI-
ENT~ 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 repre...
sentative or agent of CITY may waive the effect of this provision.
D. This Agreement, together with referenced attachments, constitutes the entire agreement
between the parties hereto, and any prior agreement, assertion, statement, understanding
or other commitment antecedent to this Agreement, whether written or oral, shall have no
force or effect whatsoever; nor shall an agreement, assertion, statement, understanding, or
other commitment occurring during the term of this Agreement, or subsequent thereto,
have any legal force or effect whatsoever, tmless properly executed in writing, and if ap-
propriate, recorded as an amendment of this Agreement.
E. In the event any disagreement or dispute should arise between the parties hereto pertain-
ing to the interpretation or meaning of any part of this Agreement or its governing rules,
codes, laws, ordinances or regulations, CITY as the party ultimately responsible to HOD
for matters of compliance, will have the fmal authority to render or to secure an interpre-
tation.
Page 19
F.. For purposes of this Agreement, all official communications and notices among the par-
ties shall be deemed made if sent postage paid to the parties and address set forth below:
TO CITY:
City Manager
City of Denton
215 E. McKinney
Denton, Texas 76201
TO SUBRECIPIENT:
Executive Director
Fred Moore Day Nursery School
821 Cross Timber Street
Denton, Texas 76205
G. 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 competent jurisdic-
tion sitting in Denton County, Texas..
of
IN WITNESS OF WHICH this Agreement has been executed on this the
, 2006..
day
CITY OF DENTON
BY:
HOWARD MARTIN
INTERIM CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SN ER, ITY ATTORNEY
BY:
Page 20
FRED MOORE DAY NURSERY
BY:
LAURA WILLIAMS
EXECUTIVE DIRECTOR
A TrEST:
BOARD SECRETARY
Page 21
ATTACIDvIENT "A"
SCOPE OF SERVICES
Description of Improvements to be Completed
Improvements include the following:
1. Construction of two additional classrooms - one infant and one toddler..
2.. Move the office to an alternate location..
3. Construct a gynmasium
4. Construct and pave a new parking lot and drive approach
Total CDBG Project Budget
$195,000
Description of Services to be Provided
. Provide a safe, healthy environment that will meet the development needs of the child.
Activities will be designed for each age group to meet the individual and group needs.
The curriculum will include education emphasizing effective earning skills, creative arts,
motor skills, physical development, speech development, personal hygiene and manners.
. Provide breakfast, llUlch, and an afternoon snack for each child.. All meals will meet the
USDA and Texas Department of Hwnan Services Special Nutrition food requirements
for children in childcare..
. Must be licensed by the Texas Department of Protective and Regulatory Services.
. Must meet or exceed the Texas Department of Human Services minimum standards for
Day Care Centers.
. Must be a North Central Texas Childcare Services designated vendor.
. Provide operation hours from 7:00 a..m. to 6:00 p.m. Monday through Friday..
Page 22
ATTACHMENT "B"
BUDGET
Construction costs related to building improvements, parking lot and gymnasium. $195,000
Please note: Prior to the start of construction for any portion of the project, Fred Moore Day
Nursery School shaD provide the Community Development Division with a total project
budget, documentation of aD funding sources and commitments, and a project p1#lnning and
construction schedule.
Page 23
ATTACHMENT "C"
24 CFR ~ 570.505
The standards described in this section apply to real property within the recipient's control which
was acquired or improved in whole or in part using CDBG funds in excess of $25,000.. These
standards shall apply from the date CDBG funds are first spent for the property until five years after
closeout of an entitlement recipient's participation in the entitlement CDBG program or, with
respect to other recipients, until five years after the closeout of the grant from which the assistance
to the property was provided..
(a) A recipient may not change the use or planned use of any such property (including
the beneficiaries of such use) from that for which the acquisition or improvement was made
unless the recipient provides affected citizens with reasonable notice of, and opportwtity to
conunent on, any proposed change, and either:
(1) The new use of such property qualifies as meeting one of the national
objectives in Section 570.208 and is not a building for the general conduct of
government; or
(2) The requirements in paragraph (b) of this section are met..
(b) If the recipient determines, after consultation with affected citizens, that it is
appropriate to change the use of the property to a use which does not qualify lUlder
paragraph (a)(l) of this section, it may retain or dispose of the property for the changed use
if the recipientts CDBG program is reimbursed in the amount of the current fair market
value of the property, less any portion of the value attributable to expenditures of non-
CDBG funds for acquisition of, and improvements to, the property.
( c ) If the change of use occurs after closeout, the provisions governing income from the
disposition of the real property in Section 570.504(b) (4) or (5), as applicable, shall apply to
the use of funds reimbmsed..
(d) Following the reimbursement of the CDBG program in accordance with paragraph
(b) of this section, the property no longer will be subject to any CDBG requirements.
Page 24
ATTACHMENT"D"
24 CFR S 570.503
(a) Before disbursing any CDBG fi.m.ds to a subrecipient, the recipient shall sign a written
agreement with the subrecipient. The agreement shall remain in effect during any period
that the subrecipient has control over CDBG fi.m.ds, including program income.
(b) At a minimum, the written agreement with the subrecipient shall include
provisions concerning the following items:
(1) Statement of Work. The agreement shall include a description of the
work to be performed, a schedule for completing the work, and a budget. These
items shall be in sufficient detail to provide a sound basis for the recipient
effectively to monitor performance under the agreement.
(2) Records and Reoorts.. The recipient shall specify in the agreement the
particular records the subrecipient must maintain and the particular reports the
subrecipient must submit in .order to assist the recipient in meeting its
recordkeeping and reporting requirements.
(3) Prosrram Income. The agreement shall include the program income
requirements set forth in Section 570.504( c).
(4) Uniform Administrative Reauirements. The agreement shall require the
subrecipient to comply with applicable uniform administrative requirements, as
described in Section 570.502.
(5) Other Program Requirements. The agreement shall require the
subrecipient to carry out each activity in compliance with all Federal laws and
regulations described in subpart K of these regulations, except that:
(i) The subrecipient does not assume the recipient's environmental
responsibilities described at Section 570.604; and
(ii) The subrecipient does not assume the recipientts responsibility
for initiating the review process under the provisions of24 CFR Part 52.
(6) Conditions for Religious OrQanizations. Where applicable, the conditions
prescribed by HUB for the use of CDBG.fi.m.ds by religious organizations shall
be included in the agreement.
(7) Suspension and Termination. The agreement shall specify that, in
accordance with 24 CFR 85.43, suspension or termination may occur if the
Page 25
subrecipient materially fails to comply with any term of the award, and that the
award may be terminated for convenience in accordance with 24 CFR 85.44.
(8) Reversion of Assets. The agreement shall specify that upon its expiration
the subrecipient shall transfer to the recipient any CDBG funds on hand at the
time of expiration and any accounts receivable attributable to the use of CDBG
funds. It shall also include provisions to the use of CDBG funds. It shall also
include provisions designed to ensure that any real property lUlder the
subrecipient's control that was acquired or improved in whole or in part with
CDBG funds in excess of$25,000 is either:
(i) Used to meet one of the national objectives in Section 570.208
until five years after expiration of the agreement, or for such longer
period of time as determined to be appropriate by the recipient; or
(ii) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property
less any portion of the value attributable to expenditures of non-CDBG
funds for acquisition of, or improvement to, the property.
(Reimbursement is not required after the period of time specified in
paragraph (b) (8) (1) of this section.)
Page 26
ATTACIDvIENT "D"
24 CFR ~ 570~504
(a) Recording Program Income~ The receipt and expenditure of program income as
defined in Section 570.500(a) shall be recorded as part of the financial transactions of the
grant program~
(b) Disposition of Program Income Received by ReciDients~
(1) Program income received before grant closeout may be retained by the
recipient if the income is treated as additional CDBG funds subject to all
applicable requirements governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that income shall affect
withdrawals of grant funds from the U..S.. Treasury as follows:
(i) Program income in the form of repayments to, or interest
earned on, a revolving fund as defined in Section 57Q..500(b) shall be
substantially disbursed from the fund before additional cash withdrawals
are made from the .U.S. Treasury for the same activity~ (This rule does
not prevent a lump sum disbursement to finance the rehabilitation of
privately owned properties as provided for in Section 570~513.)
(ii) Substantially all other program income shall be disbursed for
eligible activities before additional cash withdrawals are made from the
U.S~ Treasury.
(3) Program income on hand at the time of closeout shall continue to be
subject to the eligibility requirements in Subpart C and all other applicable
provisions of this part until it is expended..
(4) Unless. otherwise provided in any grant closeout agreement, and subject
to the requirements of paragraph (b) (5) of this section, income received after
closeout shall not be governed by the provisions of this part, except that, if at the
time of closeout the recipient has another ongoing CDBG grant received directly
from HOD, funds received after closeout shall be treated as program income of
the ongoing grant program.
(5) If the recipient does not have another ongoing grant received directly
from HOD at the time of closeout, income received after closeout from the
disposition of real property or from loans outstanding at the time of closeout shall
not be governed by the provisions of this part, except that such income shall be
used for activities that meet one of the national objectives in Section 570..208 and
the eligibility requirements described in Section 105 of the Act
Page 27
UNOFFICIAL MINUTES
COMMUNITY DEVELOPMENT ADVISORY COMMITTEE
March 2, 2006
Civic Center Meeting Room
Members Present: Sandra Benavides, Walter Eagleton, Cathy Tedrick, Edward Touraine,
and LaNelle Winn
Members Absent: Ron Aldridge, Cassandra Berry, Larry Collister, and Maureen Jamail
Staff Present: Barbara Ross
Edward Touraine, chairperson, called the meeting to order.
The minutes from February 15th and 16th were approved with no corrections.
Barbara Ross provided the members with a copy of the final numbers from the scoring
sheets completed by CDAC members. Eight committee members completed the scoring
sheets giving a higher number to the applications that they felt were the highest priority.
The scores for each application are listed below:
Fred Moore Nursery Improvements 5 5 5 3 4 5 5 5 37
Home Improvement Program 5 3 5 4 5 3 5 5 35
Homebuyer Assistance Program 4 5 4 5 5 4 4 3 34
MLK Kitchen Renovations 5 2 3 4 5 5 5 4 33
DAHC-AHOP 4 5 3 2 4 4 4 4 30
Minor Repair Program 4 1 3 4 4 5 3 4 28
Skinner Street Sewer Replacement 3 2 3 5 3 5 2 4 27
Wilson Street Sewer Replacement 3 2 2 5 3 5 2 4 26
New Generation Playground 3 3 2 2 3 4 2 4 23
Mulberry A ve. Repave 4 1 1 3 2 5 2 3 21
Exhibit 3
Members reviewed the scoring sheet. Fred Moore Day Nursery School received the
highest score. Members agreed that the Fred Moore improvement project should receive
full funding. Mr. Touraine asked members how they felt about New Generation
Childcare. Members discussed concerns about the structure of the organization. It was
noted that the organization doesn't appear to have a "full board" and also have not
developed a budget that details revenues and expenditures. Members also commented
that the organization rents it's current facility and that they had recently moved from St.
Andrews Church. Members agreed that they might look at future funding but would like
to see a more stable organization with an active board before funding is provided.
LaNelle Winn stated that she felt the infrastructure projects were very important.
Members discussed the sewer projects and the repaving of Mulberry Street.
Ms. Winn also noted that she visited the MLK kitchen and that it was not in good
condition. Cathy Tedrick indicated that she had previously assisted with the Kids
Unlimited Program and that the kitchen did not work well for that program. Members
agreed to fully fund the MLK kitchen renovation.
Ms. Tedrick asked to discuss the Home Improvement Program and noted this was the
highest level of funding requested by any applicant. Ms. Ross explained that currently,
the program primarily carries out "reconstructions" rather than rehabilitations and that
this is why the cost per unit is so high. She noted that a portion of the funding also goes
to program soft costs. Ms. Tedrick asked if a reduction would mean that fewer units
would be rehabbed/rebuilt. Ms. Ross indicated that this was correct.
Ms. Tedrick also noted that the Homebuyer Assistance Program (HAP) had funds left
from the previous year. Ms. Ross commented that home sales were slow last year but
were already picking up. She added that Ms. Rodriguez-Garcia reduced her request due
to the fact that she had funds left from last year. Members agreed that they would not
provide full funding for HAP but would allocate the program-related soft costs from
CDBG for the program.
Mr. Touraine suggested that the Skinner and Wilson Street sewer projects receive full
funding. After correction of the funding sheet, members agreed to fund both sewer
projects. Ms. Ross reviewed previously funded public improvements and their status.
Mr. Touraine suggested that the committee take out the $24,000 of administrative costs
that the Denton Affordable Housing Corporation had requested and provide the agency
with $140,000 for the Affordable Housing Opportunity Program. Members agreed and
DAHC was allocated $140,000 specifically for AHOP.
This action left approximately $16,000 to be allocated. Members agreed not to fund the
Mulberry Repave project and to put the remaining CDBG funds into the Home
Improvement Program.
Ms. Winn moved to approve the allocations as stated. Walter Eagleton seconded the
motion. The motion was unanimously approved. The recommended allocations are
listed below:
2006 CDBG HOME
FUNDING FUNDS FUNDS
VlPPLICATIONS REQUEST $729,574 $532,076
2 COM DEV HOME IMPROVEMENT PROGRAM $598,015 $144,109 $392,076
3 COM DEV HOMEBUYER ASSISTANCE $109,500 $45,000
PROGRAM
4 COM DEV MINOR REPAIR PROGRAM $101,697 $101,700
5 ENGINEERING SKINNER ST. SEWER REPLACEMENT $65,000 $65,000
6 ENGINEERING WILSON ST. SEWER REPLACEMENT $130,000 $130,000
7 ENGINEERING MULBERRY AVE. REPAVE $64,000 $0
8 PARKS & MLK RECREATION KITCHEN $48,765 $48,765
RECR. RENOV A TIONS
9 [NON-PROFIT AFFORDABLE HOUSING $164,000 $0 $140,000
OPPORTUNITY PROGRAM
10 [NON-PROFIT FRED MOORE DA Y NURSERY $195,000 $195,000
SCHOOL IMPROVEMENTS
11 [NON-PROFIT [NEW GENERATION PLA YGROUND $27,091 $0
TOTAL FUNDING RECOMMENDED $1,503,068 $729,574 $532,076
Ms. Ross told the members that April 18th would probably be the date for the CDAC and
the HSAC to present their recommendations to City Council. The public hearing on the
Action Plan would also be held that evening at the regular session. She stated she would
send out the minutes and ask for corrections and approval via email.
The meeting was adjourned.
AGENDA INFORMATION SHEET
AGENDA DATE: October 3,2006
DEPARTMENT: Community Development
Howard Martin, 349-8232 ..
CM:
SUBJECT
Consider adoption of an ordinance of the City Council of the City of Denton, Texas approving an
agreement between the City of Denton and the Denton Affordable Housing Corporation;
providing for the terms of said contract, authorizing the City Manager to execute the agreement
and to expend funds with respect to the agreement; and providing for an effective date.
BACKGROUND
The Denton Affordable Housing Corporation (DAHC) is a State-certified Community Housing
Development Organization (CHDO). HOME Program requirements state that 15% of a
participating jurisdiction's funding be allocated to CHDO-administered programs. On an annual
basis, the City of Denton allocates a minimum of 15% of the City's HOME allocation to DAHC
for the Affordable Housing Opportunity Program (AHOP). Under this program DAHC acquires
existing single-family units, renovates the unit and sells it to an eligible low/moderate household.
HOME funds are reimbursed to DAHC as projects are completed and appropriate documentation
received by Community Development.
ESTIMATED PROJECT SCHEDULE
The AHOP is an ongoing program that the City of Denton has funded for several years. Program
funds allocated for the 2006-07 program year should be expended by November 30,2007.
PRIOR ACTION/REVIEW (Councils.. Boards.. Commissions)
The Community Development Advisory Committee recommended approval of funding for the
Affordable Housing Opportunity Program as administered by the Denton Affordable Housing
Corporation. Funding for the program was included in the City's 2006 Action Planfor Housing
and Community Development. City Council approved the Action Plan on May 16, 2006.
FISCAL INFORMATION
Funding for the proposed project will be from 2006-07 Home Investment Partnerships Program
(HOME). City staff costs for program monitoring are paid from the HOME and CDBG
programs. No general funds are used in this program or to administer the program.
EXHIBITS
1. Ordinance
2. Funding Agreement
Respectfully submitted:
Prepared by:
Barbara Ross
Community Development Administrator
S :\Our Documents\Ordinances\06\DAHC 2006 ord.doc
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON
AFFORDABLE HOUSING CORPORATION; PROVIDING FOR THE TERMS OF SAID
CONTRACT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
AND TO EXPEND FUNDS WITH RESPECT TO THE AGREEMENT; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City has received funds from the U.S. Department of Housing and
Urban Development under the National Affordable Housing Act of 1990 as amended by the
Housing and Community Development Act of 1992; and
WHEREAS, the City has adopted a budget for such funds included therein an authorized
program budget for expenditure of funds, for operating costs and project funding for the Denton
Affordable Housing Corporation ("DAHC"); and
WHEREAS, the City Manager has determined that the DAHC is the only state-certified
community housing development organization ("CHDO") that includes the required number of
low income citizens from the City on its ..board of directors necessary to satisfy federal
requirements to serve the City's geographical area and that DARe has provided management
services to the City to provide affordable housing within the City which has significantly
benefited the community; and
WHEREAS, DAHC has a demonstrated history of significant service to the community
in the area of affordable housing; and
WHEREAS, this Agreement, therefore, qualifies as a sole source procurement in
accordance with S252.022(7)(f) of the TEX. LOC. GOV'T CODE and does not need to be
competitively bid; and
WHEREAS, DAHC is a neighborhood-based non-profit organization and this Agreement
is also authorized by 9373.005 of the TEX. LOC. GOV'T CODE to meet the needs and
objectives of the City's Community Development Plan; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement
for an affordable housing program with the DARe; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council hereby approves the attached Agreement between the
City and the DAHC to provide for an affordable housing program in accordance with the terms
of this Agreement, which Agreement is made a part of this ordinance for all purposes, and
authorizes the City Manager to execute this Agreement
Exhibit 1
S :\Our Documents\Ordinances\06\DAHC 2006 ord.doc
SECTION 2. The City Council authorizes the expenditure of funds for operating costs
and project funding for the DARe in accordance with the terms of the attached Agreement~
SECTION 3. This ordinance shall become effective inunediately upon its passage and
approval.
PASSED AND APPROVED this the
day of
, 2006.
PERRY R~ McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY TTORNEY
BY:
S:\Qur Documents\Coutracts\06\DAHC 2006-2007 Contract-doc
AGREEMENT BETWEEN THE CITY OF DENTON
AND THE DENTON AFFORDABLE HOUSING CORPORATION
This Agreement between the City of Denton and the Denton Affordable Housing
Corporation ("Agreement") is made and entered into by and between the City of Denton, a Texas
municipal corporation ("CITY"), acting by and through its City Manager, pursuant to ordinance,
and the Denton Affordable Housing Corporation, Denton, Texas a certified non-profit community
housing development corporation, ("CONTRACTOR")~
WHEREAS, CITY has received funds from the U. S. Department of Housing and Urban
Development Wlder the National Affordable Housing Act of 1990 as amended by the Housing and
Community Development Act of 1992;
WHEREAS, CITY has adopted a budget for such funds and included therein an authorized
Program Budget for expenditure of funds for provision of an affordable housing program by the
Denton Affordable Housing Corporation includ~ as Attachment liB";
WHEREAS, CITY has designated the Community Development Division as the division
responsible for the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, the City Manager has determined that CONTRACTOR is the only state-
certified community housing development organization (CHDO) that includes the required nmnber
of low-income citizens from the CITY on its board of directors to satisfy federal requirements
necessary to serve the CITY's geographical area; that the CONTRACTOR has provided
management services to the CITY to promote affordable housing within the CITY which has
significantly benefited the community; and CONTRACTOR has a demonstrated history of
significant service to the community in the area _of affordable housing; and
WHEREAS, CITY wishes to engage CONTRACTOR to carry out such project;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the
mutual obligations and to the performance and accomplishment of the conditions hereinafter
described~
" 1.
TERM
This Agreement shall commence on or as of Octo"ber 1., 2006, and shall terminate on
Decenlber 31, 2007, unless adjusted by the CITY. Request for an adjustment must be in writing
and is to be submitted to the Community Development Division.
Exhibit 2
· 2.
RESPONSffiILITIES
A. CONTRACTOR hereby accepts the responsibility for the performance of all
services and activities, described in the Work Statement attached hereto as Attaclnnent "Au and
incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto
as Attachment "B" and the Schedule of Contract Activities attached hereto as Attaclnnent "C" and
incorporated herein as if set forth at length, and as otherwise set forth herein, in a satisfactory and
efficient manner as detennined by CITY, in accordance with the terms herein.
B.. CONTRACTOR's executive director shall be CONTRACTOR's representative
"responsible for the management of all contractual matters pertaining hereto, unless written notifica-
tion to the contrary is received from CONTRACTOR, and approved by CITY.
c. CONTRACTOR agrees that all individual projects under the Affordable Housing
Opportunity Program and the New Construction Program described in Attachment "A" to be
assisted with HOME fimds will have prior approval from the CITY of Denton. CONTRACTOR
agrees that project delivery costs paid with HOME funds or HOME proceeds will not exceed more
than 10% of the total project cost as determined""by the CITY.
D. The CITY's Community Development Administrator will be CITY's representative
responsible for the administration of this Agreement.
E. CONTRACTOR shall be certified as a "Community Housing Development
Organization" (CHDO) with the State of Texas and the City of Denton. CONTRACTOR shall
maintain CHDO Certification for the duration of the contract term.
F. CONTRACTOR shall not requ~st disbursement of funds until they are needed for
payment of eligible costs. The amount of each request will be limited to the amount needed as per
92.504 (c)(3)(viii).
G. CONTRACTOR shall not change the Program Budget without pnor written
approval from the CITY.
H. CITY shall be responsible for performing a general enviromnental review to insure
necessary compliances are met
I. CONTRACTOR shall be responsible for performing a site-specific enviromnental
review prior to acquisition of properties to b~ used for affordable housing projects. The site-
specific review must be submitted to the Connnunity Development Division prior to final project
approval..
J. CONTRACTOR shall conduct ,~a public hearing at least once annually to review
proposed and in-progress activities and receive :"citizen input. Hearing(s) will be advertised at least
15 days in advance. Advertising, at a minimum, must include publication in a newspaper with local
circulation~ The hearing may be combined with CONTRACTOR's annual membership meeting.
A summary of comments from the public hearing will be submitted to the Community
Development Division within 30 days of the date of the public hearing.
Page 2 of 14
K~ CONTRACTOR shall provide Jimely notice to "neighborhood" residents prior to
increasing the number of units in the area by more than two single family or four multifamily units,
or prior to renovating more than five units~ Notice will include contact information or identification
of opportunities for residents to comment on the proposed development. CITY staff will determine
"neighborhood" boundaries~
.. 3.
CITY'S & CONTRACTOR'S OBLIGATIONS
A. CITY shall provide funds in the amount of $140,000 or less in project funds to the
CONTRACTOR for specific housing projects and programs as described the Work Statement,
Attaclunent "A".
B. CONTRACTOR may request a maximum of $30,000 in 2006-'07 funds per unit
Additional project costs may be paid with program proceeds and funds from other sources.
c. CONTRACTOR agrees to hol,d and save harmless the CITY, its officers and
employees from any and al11085, cost, or damage of every kind [including, property damage, bodily
injury or death], nature or description arising under this Agreement.
D. This Agreement and the payments made hereunder are contingent upon receipt of
U.S~ Department of Housing and Urban Dev~lopment funds pursuant to the HOME Investment
Partnership Program, and shall terminate immediately, not withstanding the provisions of Article
XIX hereof, should such funds be discontinued for any reason.
E.. The CONTRACTOR may not request disbursement of funds until they are needed
for payment of eligible costs~ The amoWlt of each request by the CONTRACTOR shall be limited
to the amount needed in accordance with 24 CPR 92~504 (c )(3)(viii) and shall involve the activities
set forth in the "Contract Activity Schedule" attached as Attaclunent C~
F. CONTRACTOR may not request reimbursement for expenditures that occurred
more than ninety (90) days prior to the submission of the reimbursement request to the Community
Development Division.
G~ Upon dissolution of the CONTRACTOR any remaining funds or assets derived
from the expenditure of the CITY's funds, hereinafter sometimes described as the CITY's HO:ME
funds, proceeds or HOME-funded projects, must be immediately returned to the CITY.
",4.
COMPLIANCE WITH FEDE~, STATE AND LOCAL LAWS
A~ The CITY and CONTRACTOR agree to perform their duties arising pursuant to the
Agreement in compliance with the U..S. Deparpnent of Housing and Urban Development HOME
Investment Partnership Program regulations at 24 CFR 92.
B. CONTRACTOR shall comply with all prescribed procedures regarding
nondiscrimination and equal opportunity, affirmative marketing, displacement and relocation, labor
Page 3 of 14
relations, lead-based paint and conflict of interest provisions described in 24 CFR 92 subpart H and
24 CFR 92.504.
c. CONTRACTOR agrees to ensure that all HOME-assisted housing or housing
identified as match for the HOME program meets all affordability requirements identified in 24
CFR 92~252 or 92.254~ CONTRACTOR furth.er agrees to develop a deed of trust for use with all
HOME-assisted llllits that incorporates these r:equirements, including remedies for breach of the
agreement provisions. CONTRACTOR will provide the CITY with a copy of the deed of trust with
provisions described above for approval before the sale of any HOME-assisted llllits.
D. CONTRACTOR agrees that as a certified Commllllity Housing Development
Corporation, they will comply with 24 CFR 92.300 and 92..301 ~
E. If it is determined that the use of the funding provided by the CITY does not meet
the requirements of the U.S. Department of Housing and Urban Development HOME Investment
Partnership Program, the CONTRACTOR shall reimburse the CITY for the costs determined to be
disallowed under the U.S~ Department of Housing and Urban Development HOME Investment
Partnership Program regulations.
F~ CONTRACTOR agrees that all housing assisted under this agreement will meet the
property standards requirements in 24 CFR 92.251 and lead-based paint standards in 24 CFR
92~355.
G. CONTRACTOR agrees to comply with displacement and relocation requirements at
24 CFR 92~504 and 92~353~
H. CONTRACTOR agrees to comply with procurement requirements at 24 CFR 84.44;
84~45; 84~46; 84.47 and 84.48~
I~ C-ONTRACTOR certifies that it is not C1JITel1tly listed on the General Services
Administration's List of Parties Excluded from 'Federal Procurement or Nonprocurement Programs
in accordance with Executive Orders 12549 and112689 and \\1.11 not enter into agreements to expend
Federal funds vvith contractors that are cUITently..listed~
J.. CONTRACTOR agrees to comply with all applicable Federal laws, laws of the
State of Texas and ordinances of the City of Denton.
5.
REPRESENTATIONS
A~ The CITY is providing funding to the CONTRACTOR in order to promote
development of affordable housing. Use of funds for programming will meet this stated goal.
B. The CITY is the only agent authorized to designate changes to the Program Budget
or to approve specific projects and programs authorized pursuant to the non-adrnllristration portion
of the Program Budget
c. CONTRACTOR assures and guarantees that it possesses the legal authority,
Page 4 of 14
pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to
enter into this Agreement.
D. The person or persons signing and executing this Agreement on b.ehalf of
CONTRACTOR, do hereby warrant and guarantee that he, she, or they have been fully authorized
by CONTRACTOR to execute this Agreement on behalf of CONTRACTOR and to validly and
legally bind CONTRACTOR to all terms, performances and provisions herein set forth.
E~ CITY shall have the right, at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either CONTRACTOR or
the person signing the Agreement to enter into this Agreement. CONTRACTOR is liable to CITY
for any money it has received from CITY for performance of the provisions of this Agreement if
CITY has suspended or terminated this Agreement for the reasons enumerated in this Section.
F. CONTRACTOR agrees that the fimds and resources provided CONTRACTOR
under the terms of this Agreement will in no way be substituted for fimds and resources from other
sources, nor in any way serve to reduce the resources, services, or other benefits which would have
been available to, or provided through, CONTRACTOR had this Agreement not been executed.
: 6.
PROGRAM INCOME
A~ HOME program income is defined as all fees and interest payments on HOME-
assisted nnits/projects and any interest income on deposited HOME ftmds or program proceeds
collected by the CONTRACTOR. Program income may be retained by the CONTRACTOR to be
used for HOME-eligible activities included in the Work Statement included herein as Attachment
"A". Provided, however that any interest on deposited HOME funds must be remitted to the CITY
on a quarterly basis.
B. HOME program proceeds are defined as income from the sale of HOME-assisted
housing. Proceeds may be retained by the CONTRACTOR for use on other HOME-eligible
activities included in the Work Statement included here as Attachment "A"~
c~ Any income generated from tQe use of HOME fimds, proceeds, or any income
generated through subsequent use of these funds shall continue to be used by the CONTRACTOR
for HOME-eligible activities included in the Work Statement in the City of Denton. Use of the
fimds on projects or programs other than those:( identified in this Agreement must be approved in
writing by the CITY. Any income retained and used by the CONTRACTOR must be available to
the CITY as a matching contribution for the HOME program~ Upon request, CONTRACTOR will
approve appropriate certifications stating that funding is available as a HOME program match to
the CITY.
i 7.
NVUNTENAN~EOFRECORDS
A~ CONTRACTOR agrees to maintain records that will provide accurate, current,
separate, and complete disclosure of the status of the fimds received pursuant to this Agreement and
pursuant to any other applicable Federal and/or State regulations establishing standards for financial
management. CONTRACTOR's record system. shall contain sufficient documentation to provide
Page 5 of 14
detailed support and justification for each expenditure~ Nothing in this Section shall be construed
to relieve CONTRACTOR of fiscal accountability and liability under any other provision of this
Agreement or any applicable law~ CONTRACTOR shall include the substance of this provision in
all subcontracts.
B.. CONTRACTOR agrees to retain all books, records, documents, reports, and written
accolUlting policies and procedures pertaining.:: to the operation of programs and expenditures of
funds pursuant to this Agreement for the period of time and under the conditions specified by
CITY~
c~ CONTRACTOR shall submit a copy of each annual independent audit or any
organizational audit conducted, to the Community Development Division within 30 days of the
date of completion..
D. Nothing in the above subsections shall be construed to relieve CONTRACTOR of
responsibility for retaining accurate and current records, which clearly reflect the level and benefit
of services, provided pursuant to this Agreement
E.. At any reasonable time and - as often as CITY may deem necessary, the
CONTRACTOR shall make available to CITY, or any of its authorized representatives, all of its
records and shall permit CITY, or any of its authorized representatives to audit, examine, make
excerpts and copies of such records, and to conduct audits of all contracts, invoices, materials,
payrolls, records of personnel, conditions or employment and all other data relating to the program
requested by said representatives.
F~ The CONTRACTOR shall give the City of Denton, the U.S. Department of
Housing and Urban Development, or any of their dilly authorized representatives, access to and the
right to examine all books, acCOlUlts, records, reports, files and other papers belonging to or in use
by the CONTRACTOR pertaining to this Agreement.. Such rights to access shall continue as long
as the CONTRACTOR is required to retain the records..
;,.8.
REPORTS AND INFORMATION
A. CONTRACTOR shall provide quarterly financial and beneficiary reports that shall
contain such records, data and information as '.: CITY may request and deem pertinent to matters
covered by this Agreement. Reports shall be due to the Community Development Division within
45 days of the end of the quarter~ CONTRACTOR shall provide any additional information as
requested by the CITY within 10 days.
B. CONTRACTOR shall submit copies of all public meeting advertisements and
residents notifications setting forth the time and place thereof, including, without limitation, board
of director's meetings, to the Connnunity Development Division office at least 72 hours prior to the
meeting in accordance with Section 16 of this Agreement..
Page 6 of 14
; 9.
INSURANCE
A. CONTRACTOR shall observe sound business practices with respect to providing
such bonding and insurance as would provide, adequate coverage for services offered lUlder this
Agreement~
B. The premises on and in which the activities described in Exhibit A are conducted,
and the employees conducting these activities, shall be covered by premise liability insurance, com-
monly referred to as ffOwner/Tenantf1 coverage with CITY named as an additional insured.. Upon
request of CONTRACTOR, CITY may, at its s~ole discretion, approve alternate insurance coverage
arrangements. "
c. CONTRACTOR will comply with applicable workers' compensation statutes and
will obtain employers' liability coverage where available and other appropriate liability coverage for
program participants, if applicable.
D. CONTRACTOR will maintain :"adequate and continuous liability insurance on all
vehicles owned, leased or operated by CONTRACTOR. All employees of CONTRACTOR who
are required to drive a vehicle in the normal scope and course of their employment must possess a
valid Texas driver1s license and automobile liability insurance. Evidence of the employee's current
possession of a valid license and insurance must be maintained on a current basis in
CONTRACTOR1s files.
E. Actual losses not covered by insurance as required by this Section are not allowable
costs under this Agreement, and remain the sole responsibility of CONTRACTOR.
F. The policy or policies of insurance shall contain a clause which requires that CITY
and CONTRACTOR be notified in writing of any cancellation or change in the policy at least thirty
(30) days prior to such change or cancellation.
;"'10.
EQUAL OPPORTUNITY
During the performance of this Agreement, the CONTRACTOR is subject to Executive
Order 11246, as amended, and, therefore, agrees to the following:
(1) The CONTRACTOR will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, or familial status.
The CONTRACTOR will take affmnative action to ensure that applicants who are
employed are treated during employment without regard to their race, color,
religion, sex, national origin, or familial status, concerning such employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or
termination; rates of payor their apprenticeship. The CONTRACTOR agrees to
post in conspicuous places, available to both employees and applicants for
employment, notices to be proyided by the CITY setting forth provisions of this
nondiscrimination clause.
Page 7 of 14
(2) The CONTRACTOR, in all solicitations or advertisements for employees placed by
or on behalf of the CONTRACTOR, shall state that all qualified applicants will
receive consideration for employment without regard to race, color, religion, sex,
national origin, or familial status~
.: 11.
CONFLICT:. OF INTEREST
A~ CONTRACTOR agrees to comply with the federal regulations at 24 CFR 92~356.
B. CONTRACTOR 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 CONTRACTOR 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.
c. CONTRACTOR further covenants that no member of its governing body or its
staff, subcontractors or employees shall possess any interest in or use this position for a pmpose that
is or gives the appearance of being motivated by desire for private gain for themselves, or others,
particularly those with which they have family, business, or other ties.
D~ No officer, member, or employee of CITY and no member of its governing body
who exercises any fimction 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
12.
POLITICAL OR SECTARIAN ACTIVITY
A. None of the performance rendered hereunder shall involve any political activity
(including, but not limited to, any activity to :fi.n1her the election or defeat of any candidate for
public office) or any activity undertaken to jnfluence the passage, defeat or final content of
legislation.
B. None of the performance render~d heretmder shall involve or benefit in any, manner
any sectarian or religious activity.
~.13.
WARRANTIES
CONTRACTOR represents and warrants that:
A. All information, reports and d~ta 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 undergol1e any significant change without written notice to
CITY.
B. Any supporting financial statements heretofore requested by CITY and furnished to
Page 8 of 14
CITY, are complete, accurate and fairly reflect the financial condition of CONTRACTOR on the
date shown on said report, and the results of the operation for the period covered by the report, and
that since said date, there has been no material change, adverse or otherwise, in the financial
condition of CONTRACTOR.
c. No litigation or legal proceedings are presently pending or threatened against
CONTRACTOR.
D.. None of the provisions herein contravenes or is in conflict with the authority under
which CONTRACTOR is doing business or with the provisions of any existing indenture or
agreement of CONTRACTOR.
E~ CONTRACTOR 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 CONTRACTOR is subject to any lien or encumbrance of any
character, except for current taxes not delinquent, except as shown in the financial statements
furnished by CONTRACTOR to CITY.
G. Each of these representations i.-and warranties shall be continuing and shall be
deemed to have been repeated by the submission of each request for payment
14.
COVENANTS
A. During the period of time that payment may be made hereunder and so long as any
payments remain unliquidated, CONTRACTOR shall not, without the prior written consent of the
Conununity Development Administrator or her authorized representative:
(1) Mortgage, pledge, or otherwise encwnber or suffer to be encumbered, any of
the assets of CONTRACTOR now owned or hereafter acquired by it, or
permit any pre-existing mortgages, liens, or other encwnbrances to remain
on, or attached to, any ~sets of CONTRACTOR which are allocated to the
performance of this Agreement and with respect to which CITY has
ownership hereunder.
(2) Sell, assign, pledge, transfer or otherwise dispose of accounts receivables,
notes or claims for money due or to become due~
(3) Sell, convey, or lease all pr substantial part of its assets.
(4) Make any advance or lpan to, or incur any liability for any other finn,
person, entity or corporation as guarantor, surety, or acconunodation
endorser.
(5) Sell, donate, loan or transfer any equipment or item of personal property
purchased with funds paid to CONTRACTOR by CITY, unless CITY
Page 9 of 14
authorizes such transfer..
B. CONTRACTOR agrees, upon written request by CITY, to require its employees to
attend training sessions sponsored by the Comniunity Development Division.
15.
MONITORING AND EVALUATION
A. CITY shall perform on-site monitoring of CONTRACTORfs performance lUlder this
Agreement
B. CONTRACTOR agrees that CITY may carry out monitoring and evaluation
activities to ensure adherence by CONTRACTOR to the Work Statement, and Program Goals and
Objectives, which are attached hereto as Attachment A, as well as other provisions of this
Agreement
c. CONTRACTOR agrees to cooperate fully with CITY in the development,
implementation and maintenance of record-keeping systems and to provide data determined by
CITY to be necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities..
D.. CONTRACTOR agrees to cooperate in such a way so as not to obstruct or delay
CITY in such monitoring and to designate one of its staff members to coordinate the monitoring
process as requested by CITY staff.
E. CITY shall provide a written evaluation of contract performance to the
CONTRACTOR within 30 days of the monitoring. Written notification will be provided to staff
and the board of directors..
F. Within 60 days of notification-by the CITY, the CONTRACTOR shall provide
complete responses include a statement acknowledging any corrective action required to be taken
due to City of Denton monitoring findings and concerns.
G. CONTRACTOR shall submit cQpies of any fiscal, management, or audit reports by
any of CONTRACTOR's fimding or regulatory bodies to CITY within fifteen (15) working days of
receipt by CONTRACTOR.
.16.
DIRECTORS' MEETINGS
A. During the terms of this Agreement, CONTRACTOR shall cause to be delivered
to CITY copies of all notices of meetings of it&. Board of Directors, setting forth the time and
place thereof. Such notice shall be delivered to/CITY in a timely manner to give adequate notice,
and shall include an agenda and a brief descrip~ion of the matters to be discussed.
B. CONTRACTOR lUlderstands and agrees that CITY representatives shall be afforded
access to all of the Board of Directors' meetings~
c. Minutes of all meetings of CONTRACTOR's governing body shall be available to
Page 10 of 14
CITY within ten (10) working days of approvaL
.17.
NEPOTISM
CONTRACTOR shall not employ in any paid capacity any person who is a member of the
immediate family of any person who is currently employed by CONTRACTOR, or is a member of
CONTRACTOR's governing board. The terrh "member of immediate family" includes: wife,
husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece,
step-parent, step-child, half-brother and half-sister.
18.
SUSPENSION OF FUNDING
A. Upon determination by CITY of CONTRACTOR's failure to timely and properly
perform each of the requirements, time conditions and duties provided herein, CITY, without
limiting any rights it may otherwise have, may, at its discretion, and upon ten (10) working days
written notice to CONTRACTOR, withhold further payments to CONTRACTOR. Such notice
may be given by mail to the Executive Officer and the Board of Directors of CONTRACTOR~ The
notice shall set forth the default or failure alleged, and the action required for cure.
B. The period of such suspension shall be of such duration as is appropriate to
accomplish corrective action, but in no event shall it exceed thirty (30) calendar days.. At the end of
the suspension period, if CITY determines the default or deficiency has been satisfied,
CONTRACTOR may be restored to full compliance status and paid all eligible funds withheld or
impounded during the suspension period. If, however, CITY determines that CONTRACTOR has
not come into compliance, this Agreement may be terminated under Section 19 of this Agreement..
19.
TERMINATION
A. The CITY shall have the right to terminate this Agreement, in whole or in part, at
any time whenever the CITY determines that the CONTRACTOR has failed to comply with any
term of this Agreement. The CITY shall notify the CONTRACTOR in writing thirty (30) days
prior to the date of termination, the effective date of such termination, and in the case of partial
terminatio~ the portion of the Agreement to be terminated.. Property shall be subject to disposition.
B. The CITY shall have the righ~ to terminate this Agreement for convenience, in
whole or in part by written notification to the CONTRACTOR which shall include the reason for
such termination, the effective date and the portion to be terminated.
c. If, in the case of a partial terrpination, it is the determination of CITY that the
remaining portion of the award is not sufficient to accomplish the project as described in the Wark
Statement, CITY may require that the entire grant be terminated.
.20.
INDEMNIFICATION
Page 11 of14
A. It is expressly understood and agreed by both parties hereto that CITY is
contracting with CONTRACTOR as an ~dependent CONTRACTOR and that as such,
CONTRACTOR shall save and hold CITY,.its officers, agents and employees harmless from
all liability of any nature or kind, including costs and expenses for, or on account of, any
claims, audit exceptions, demands, suits or damages of any character whatsoever resulting in
whole or in part from the performance or omission of any employee, agent or representative
of CONTRACTOR.
B. CONTRACTOR agrees to provide the defense for, and to indemnify and hold
harmless CITY its agents, employees, or contractors from any and all claims, suits, causes of
action, demands, damages, losses, attorneys fees, expenses, and liability arising out of the use
of these contracted funds and program administration and implementation except to the
extent caused by the willful act or omission of CITY, its agents, employees, or contractors.
21.
NOTICE
For purposes of this Agreement, all of:qcial communications and notices among the parties
shall be deemed made as of the date mailed if sent postage paid to the parties and address set for
below:
TO CITY:
Tn rONTR ArTOR:
City Manager
City of Denton
215 E~ McKinney St
Denton, Texas 76201
Director
D,enton Affordable Housing Corporation
604 N Bell Avenue
D.enton, Texas 76209
22.
VENUE
This Agreement shall be interpreted in .accordance with the laws of the State of Texas and
venue of any litigation concerning this Agree~ent shall be in a court of competent jurisdiction
sitting in Denton County, Texas~ .0
23.
CONSOLIDATION AGREEMENT
This Agreement consolidates and replaces all previous Agreements between CITY and
CONTRACTOR and all Amendments to those Agreements except where otherwise expressed
herein~ Provided, however, that CONTRACTOR shall be required to maintain all affordability
requirements on all HOME funded projects, shall fully perform all continuing obligations required
under these previous Agreements and applicable state, federal and local laws and shall continue to
use all HOME proceeds from any CITY-funded projects since CONTRACTOR's inception for
HOME-eligible activities as described in this Agreement and as may be required by law~
Page 12 of 14
IN WITNESS OF WHICH this Agreement has been executed on this the day of
, 2006.
CITY OF DENTON
B.Y:
HOWARD MARTIN, CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
DENTON AFFORDABLE HOUSING
CORPORATION
BY:
BOARD PRESIDENT
ATTEST:
SECRETARY
Page 13 of 14
ATTACHMENT "An
WORK STATEMENT AND PERFORMANCE OUTCOME GOALS
Denton Affordable Housing Corporation
The Denton Affordable Housing Corporation ('.DARen) was developed to increase the supply of
affordable housing in the Denton area~ The organization is designed to carry out the following
activities but is not limited to these: administration, rehabilitation, acquisition, new construction,
tenant-based rental assistance and public service programs.
Expenditure of City ftmds for housing projects is limited to projects within the city limits of
Denton~ DARe's projects and programs will primarily benefit low and moderate-income
households~ Low and moderate income is defined as households below 80% of the area median
Income~
The Mrordable Homeownership Opportunity Program provides for acquisition, renovation and
sale of single-family units. HOME Program 2006-2007 ftmding in the amount of $140,000 will be
used in the Program. Proceeds from the sale of completed projects will be placed in the AROP
program ftmd for future projects~ Each project must include a minimwn of $5,000 and no more
than $30,000 in 2006-'07 HOME funding. On each project, a non-specified amount of ftmding
must be expended on either acquisition or rehabilitation of the unit. A non-specified amount of
ftmding must also be expended to provide homebuyer assistance and this amount will determine the
extent of the required affordability period~ No more than 10% of the HOME portion of the project
sales proceeds may be used for project delivery costs for the program. The HOME portion of the
proceeds is based on the percentage of HOME funds included in the project.. A minimum nffnur (4)
un its will hp .filnld tn lnw and m ndprntp-inrnmp. hnmp.h1J~JP;r,fil
The Mrordable Housing Construction Program provides funding to construct single-family
units. Properties suitable for single-family housing will be acquired tluough purchase or donation~
Units will be constructed in such a way as to make them affordable to low and moderate-income
households. Units will be sold to HOME-eligible households. Not more than 100/0 of the total
ftmding amount may be used to assist buyers with down payment and closing costs.. A minimu.m t!f
nnp (I) unit will hp r()n/~tr1Jrtpd and ~nld in lnw and mndprnfp.-inrnmp. hnmph'JVp.rs
... ~
ATTACHMENT "Bn
PROGRAM BUDGET
Affordable Homeownership Opportunity Program
Affordable Housing Construction Program
* Both programs will also use program proceed~ for projects.
$140,000
*no 2006-2007 funding
ATTACHMENT "C"
SCHEDULE OF CONTRACT ACTNITIES
Affordable Housing Opportunity Program -
Acquisition, Rehabilitation, Homebuyer
Ass!.
30,000
$30,000
$30,000
$20,000 $140,000
New Construction Program
Use of Program Proceeds to Construct Additional Unit(s)
-::~~ ~~~ ~~>~ y~~~ ~ < ~ ~~ ~ y ~ y ~ ~~~ ~~ ~ ~ ~ ~~ ~ ...>>~~::: ~~~n~~ ~ ~ ~n~~~ ~~~ ~ ~~ ...~<>~~ ~ n~~ ~ ~~< ~ ~ ~ ~::<~~~ > ~~ ~ ~ ~~ n ~ ~
>> ~<~~~~~ ~~~ -::~ ~ ~ ~ ~ ~ ~ ~~ ~~ ~ ~ ~~~~~ ~ ~ ~~~~ ~ ~ ~::~~;:<< ~ ~ ~ ~~n ~ ~ ~~ :~ ::~~>>-<:~:~ ~ ~ ~ ~ ~~<~ ~n ~ ~~ ~ ~ ~ ~
-:- ~ ~ ~ ~ ~ ... ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
S :\Our Documents\Miscellaneous\06\1 00306 A IS charter amendments.doc
AGENDA INFORMATION SHEET
AGENDA DATE: October 3, 2006
DEPARTMENT: Legal Department
CM/DCM/ ACM: Ed Snyder, City Attorney
SUBJECT: An ordinance amending Ordinance No. 2006-232 concerning amendments to the
City Charter to correct a typographical error; providing a severability clause, providing an open
meetings clause, and providing an effective date.
BACKGROUND: On August 28, 2006 the City Council approved Ordinance No.2006-232
calling an election for amendments to the City Charter. We just noticed a typographical error in
the ordinance. Amendment 22 dealing with the regulation of franchised utilities provides for a
revision to Section 13.04 by completely revising paragraph k. Some of the language in the
existing Charter was inadvertently omitted. It should have been included showing it as strock
out The language that was omitted is as follows:
ReqHir0 each utility to file an annual ~."'/ritten report, s....-yom to bjr its Gecretary or president,
";'lith the cit)7 ~ecretary "'y'l/ithin sixt), (60) days after the close of the flGeal
DISCUSSION: The proposed ordinance corrects the typographical error by including the above
language in Amendment 22.. No other changes are being made to Ordinance No. 2006-232. This
does not affect the ballot proposition.
RECOMMENDATION: Staffrecommends approval
Ed Snyder
City Attorney
S :\Qur Documents\Ordinances\06\Ordinance Amending 2006-232.doc
ORDINANCE NO.
AN ORDINANCE AMENDING ORDINANCE NO~ 2006-232 CONCERNING AMEND-
MENTS TO THE CITY CHARTER TO CORRECT A TYPOGRAPHICAL ERROR; PROVID-
ING A SEVERABILITY CLAUSE; PROVIDING AN OPEN MEETINGS CLAUSE; AND
PROVIDING AN EFFECTNE DATE.
WHEREAS, The City Council passed Ordinance 2006-232 ordering an election to be
held for the purpose of submitting to the registered voters of Denton, Texas, amendments to the
Denton City Charter~
WHEREAS, the City Council finds that there was a typographical error in Amendment
No. 22 regarding Section 13~04 of the Charter that should be corrected; and
WHEREAS, the typographical error consisted of the inadvertent omission of certain lan-
guage contained in the existing Charter, which should have been included showing it as struck
out; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance
are incorporated herein by reference.
SECTION 2. Ordinance No.. 2006-232 is hereby amended by amending Amendment
No. 22 in its entirety to read as follows:
AMENDMENT NO. 22
Section 13.04 of the Charter shall be amended to read as follows:
Sec. 13.04. Regulation of utilities.
The city council shall have the power and the duty to:
(a) Determine, fix and regulate the charges, fares or rates of all public utilities operating
within the city, provided the council shall not prescribe any rate of compensation which
will yield more than a fair return upon the fair value of the physical property used and
useful in rendering service to the public.
(b) Require such franchise holders who request an increase in rates, charges or fares to reim-
burse the city for reasonable expenses incurred in employing independent rate consultants
to conduct investigations, present evidence and advise the council on such requested in-
crease.
(c) Prescribe reasonable standards of service and quality of products to be furnished by each
utility and prevent unjust discrimination~
(d) Require such extensions of plant and service and such maintenance of plant and fixtures
as may be necessary to provide adequate and efficient service~
(e) Collect from every public utility operating in the city its fair and just proportion of the
expense of excavating, grading, paving, repaving, constructing, reconstructing, draining,
repairing, maintaining, lighting, sweeping and sprinkling such portions of the alleys,
bridges, culverts, viaducts and other public places and ways of the city as may be occu-
pied or used in whole or in part by such utilities; or compel such public utility to perform,
at its own expense, its just share of such excavating, grading, paving, repaving, construct-
ing, reconstructing, draining, repairing, maintaining, lighting, sweeping and sprinkling.
(f) Prescribe the form of accounts which shall be kept by each utility; provided, that if the
utility shall keep its accounts in accordance with the uniform system of accounts for said
utility as prescribed by the National Association of Railroad and Public Utility Commis-
sioners, the Federal Power Commissi<?n, the Federal Communications Commission, the
Railroad Commission of Texas, or their respective successors, this shall be deemed suffi-
cient compliance with this paragraph.. ~
(g) Examine or cause to be examined at any time the accounts and other records of any utility
operating within the city for the purpose of ascertaining any fact relating to the business
done by such utility and pertinent to the councilfs power of regulation.
(h) The council shall provide means and prescribe regulations for independent testing of all
gas, water, light and other public utility meters on complaint of any person who may be
dissatisfied with the readings of the employees of those utilities, whether owned by pri-
vate corporations or by the City of Denton.
(i) Enact and enforce such reasonable regulations and restrictions as may be deemed desir-
able or conducive to the safety, welfar~ and accommodation of the public.
(1) The City of Denton shall have power. to prohibit the use of any street, alley, highway,
boulevard or grounds of the city by any telegraph, telephone, electric light, street railway,
interurban railway, gas company or any other character of public utility without first ob-
taining the consent of the governing authorities expressed by ordinance, and upon paying
such compensation as may be prescribed and upon such conditions as may be provided
for by such ordinances, and the City of Denton shall have the power to require all tele-
graph, telephone and electric light companies to place their wires underground.
(k) ReQuire each utility operating in the city to file with the city such reoorts and other in-
formation pertaining to its operations that are required bv its franchise agreement with the
city", this charter~ city code" other aoolicable laws.. or that may be reauired from time to
time bv the council. Requ.ire eaeh utilit)~ to file an annual "y"lritten report, L)'y910m to by its
Page 2
secretary or pre~ident, ~y"/ith the city seer0tary '.'l:lithin eiJct)r (60) days after the elose of the
fi.seal-year of such utility, "'.vIDch report 'shall sho.....!:
(1) The aetual cost of the plant and propert)T d8"/oted to publie use in serving eustom
ers in the City of Denton, stating the location and cost of eaeh unit thereof, to
gether "t'?ith the depreciation and present '/ulus of eaeh plant and property~
(2) The other eo~ts or ",aIlle elaimed for sHeh plant or propert)r, sho'ly"'1ing ",vhethor slleh
east or "-laIHe h~ arri'/ed at by book costs, purcha~e eosts, appraiE;ed "lalue, present
in'16stment "laIne, reproduction cost ne~,tl[,] less accmed depreciation or SOMe
other de~eribed method, if the historical east is not a"/ailable~
(3) The properties shall be listed in" detail ~ho'.-vinb tho intaflgible and tangible proper
ties, saeh as lands, machinef)r, buildings, pipes, poles, eireuits, mains, 0te~, each
treated soparately'~
(4) If any federal or state regulatory authority has prescribed any method or yardstick:
b)~ ~,;yhich the property or plant has been '/olued, tS1Reh "lulue and the name of such
authority shall bo stated vlith a reference to the order relied upon~
(5) The amoHnt of any lien or mortgage u.pon the properties composing such plant; if
the lien or mortgage eo:vers so?eral plants or prop0f1:ie~, then the report shall sho','!
the proportionate "/alue of the plant and property in Denton to nIl the property
eo--/ered by the lion or mortgage and shall state ":/aether such proportionate '/ulues
are based on aetuaI historical costs, book eosts, appraieed ",alues or other method,
and the report shall further ShOT,~/ the eomparatit."e IRlmber of meters or customers
served by the Donton plant and their aggrogate liS0 of sen~iee in relation to the
'l/hole proporty eO"lrlered by the lien or mortgage; liko'lTl'ise all other indebtedness
pertaiaiBg to sReh enterprise shall bo sho....;n.
(6) The annual co~t of operating SHch plant or f:))~tem shO'lt'/ilig as separate items the
amount paid for salaries and 'IT~/ab0S, fixed eharg0s, ineluding interest, taJC0S and
insurance, gi"/ing eaeh separatel:y, amoHnt paid for fuel, 6JctoRsionE) and repairs,
gi"/ing each ~eparately and particalarizing the extensions and repairs, the cost of
maintenance, amoant paid for damages, identif)riBf; each claim or ~uit, amount
paid for miscellaneous 0JCpenSes, and, if my machinery or eqilipment i~ aban
dOlled, "~yom out or its US0 dise~ntiHUed, the same ~hall be stated, the original eost
and present --faluo thereof shall be gi'len; and the alloeatioB and the method of aI
Ioeating cost of the basin0ss of sueh utility in Denton shall be Gho~;.m in detail
;llith a statement of the basi~ for each !Such alloeation, proration or di./ision of
costs and 0~cp6nses~
~
(7) Tho report ~hall GhO"~.1 the gross oarnings of such utility from its operations in
Denton; the east of prodacing such earnings, ineluding an itemization of any
Page 3
o"/er all prorated eoets or e~(pensos eharged against the utility'& operations in
Denton; and the net profits from the operations in D0nton~
(8) The report shall also contain any other information roquested by resolution of the
council.
(1) Fix appropriate penalties to enforce compliance with all rules and regulations enacted by
the counciL
(m) Give due notice and a fair hearing to persons or corporations to be affected by such rules
and regulations before they shall be adopted.
SECTION 3. All other terms and conditions of Ordinance No. 2006-232 not amended
by this ordinance will remain in full force and effect..
SECTION 4~ If any section, subsection, paragraph, sentence, clause, phrase, or word in
this ordinance, or application thereof to any ,person or circumstance is held to be unconstitu-
tional, such holding shall not affect the validity of the remaining portions of this ordinance, the
City Council of the City of Denton hereby declares that they would have enacted such remaining
portions despite any such invalidity~
SECTION 5 ~ The City Council has found and determined that the meeting at which this
ordinance is considered is open to the public, and that notice thereof was given in accordance
with the provisions of the Texas open meetings law, Tex. Gov't Code ch. 551, as amended, and
that a quorum of the City Council was present
SECTION 6~ This ordinance shall become effective immediately upon its passage and
approval~
PASSED AND APPROVED this the
day of
, 2006.
PERRY R~ McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
BY:
Page 4