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HomeMy WebLinkAboutJune 19, 2007 Agenda $*(1'$ &,7<2)'(1721&,7<&281&,/ -XQH City of Denton City Council Agenda June 19, 2007 Page 2 1. Consider and discuss status and settlement demand in litigation styled McFarling, et al. v. City of Denton, Cause No. 02-06-0023 8-CV, currently pending in the Court of Appeals, Second District of Texas, Fort Worth Division. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOVT. CODE, §551.001, ET SE . (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council on Tuesday, June 19, 2007 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards B. June Yard-of the-Month 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 - J). 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 - J 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 June 19, 2007 Page 3 A. Consider adoption of an ordinance accepting competitive bids and awarding a two-year contract for the purchase of water and sewer parts for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (Bid 3730-Two-Year Contract for Water and Sewer Warehouse Inventory awarded to the lowest responsible bidder for like items, or by section, in the annual estimated amount of $800,000). The Public Utilities Board recommends approval (5-0). B. Consider adoption of an ordinance accepting competitive bids and awarding a three-year contract for the purchase of electric meters, CTs, and meter sockets for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 3781-Three-Year Contract for Electric Meters, CTs and Meter Sockets awarded to the lowest responsible bidder for each item in the annual estimated amount of $250,000). The Public Utilities Board recommends approval (5-0). C. Consider adoption of an ordinance providing for the expenditure of funds for the refurbishing and mounting of an ambulance module on a new 2008 chassis for the Denton Fire Department in accordance with provisions of State Law exempting such purchases from requirements for competitive bidding; and providing an effective date (File 3 807-Emergency Purchase of Refurbishment and Mounting of Ambulance Module on Chassis for the City of Denton Fire Department awarded to Freeway Ford in the amount of $49,400). D. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the installation of a digester cover at the City of Denton Pecan Creek Water Reclamation Plant; providing for the expenditure of funds therefor; and providing an effective date (Bid 3796-Pecan Creek Water Reclamation Plant Digester Improvements awarded to Crescent Constructors, Inc. in the amount of $643,000). The Public Utilities Board recommends approval (5-0). E. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for improvements to Cedar Street including sidewalk replacement, accessibility ramps, landscaping, storm drainage, water line and sanitary sewer improvements; providing for the expenditure of funds therefor; and providing an effective date (Bid 3770-Cedar Street Improvements awarded to The Fain Group, Inc. in the amount of $1,170,263). The Public Utilities Board recommends approval (5-0). F. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of sanitary sewer replacements for Skinner and Wilson Streets; providing for the expenditure of funds therefor; and providing an effective date (Bid 3779-Skinner Street and Wilson Street 8" Sanitary Sewer Replacements awarded to Dickerson Construction Company, Inc. in the amount of $179,277.50). City of Denton City Council Agenda June 19, 2007 Page 4 G. Consider approval of a tax refund for the following property tax: Name Reason Tax Year Amount 1. Campus Pk Denton Ltd DCAD Supplemental Change 2006 $ 8,121.22 H. Approve the minutes of: May 1, 2007 May 15, 2007 May 22, 2007 I. Consider approval of a resolution of the City of Denton, Texas authorizing the denial of Atmos Energy Corporation's Mid-Tex Division's ("Atmos Mid-Tex") Gas Reliability Infrastructure Program adjustments for calendar year 2006; authorizing participation in a coalition of cities known as Atmos Texas Municipalities ("ATM"); authorizing the hiring of lawyers and rate experts; authorizing the City's participation to the full extent permitted by law at the Railroad Commission of Texas in GUD Docket Nos. 9734 and 9726; requiring the reimbursement of municipal rate case expenses; finding that the meeting complied with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. J. Consider adoption of an ordinance authorizing the City Manager to execute an Oil and Gas Lease with Endeavor Energy for 19.45 acres of Cross Timbers Park situated in the N. Britton Survey, Abstract No. 51, in the City of Denton, Denton County, Texas, and related documents; providing severability and an effective date. 4. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance regarding the rezoning of approximately 2,120 acres from Neighborhood Residential 2 (NR-2), Neighborhood Residential 3 (NR-3), Neighborhood Residential 4 (NR-4), Neighborhood Residential 6 (NR-6), Neighborhood Residential Mixed Use 12 (NRMU-12), Neighborhood Residential Mixed Use (NRMU), Community Mixed Use General (CM-G), Planned Development District No. 120 (PD-120), and Rural Residential 5 (RD-5) zoning districts to the Hills of Denton Master Plan Community (Hills of Denton MPC) zoning district. The property is 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. (Z06-0026, Hills of Denton) The Planning & Zoning Commission recommends approval (7-0). B. Hold the second of two public hearings to consider the voluntary annexation and service plan for two sites. The first site is approximately 7.85 acres and the second site is approximately 1.54 acres, totaling approximately 9.39 acres. The sites to be annexed are generally located on the north side of Spencer Road between Woodrow Lane and Brinker Road. The sites are within a tract of land legally described as Municipal Utility Addition, Lot 1, Block 2. (A07-0002, Denton 1Vlunicipal Electric Spencer Complex Annexation) City of Denton City Council Agenda June 19, 2007 Page 5 C. Hold the second of two public hearings to consider the voluntary annexation and service plan for approximately 127.9662 acres. The property to be annexed is generally located in the northwestern area of the City of Denton's Extraterritorial Jurisdiction (ETJ) at the northwest corner of I-35N and the future Loop 288 extension. The parcel is legally described as a tract of land situated in the BBB & CRR Survey, Abstract No. O l 41 A, Denton County, Texas, and a tract of land situated in the Whitlock Survey, Abstract No. A1403A, Denton County, Texas. (A07-0001, Westview Commercial Annexation) 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointing a nominating committee to develop a slate of appointees for the Economic Development Partnership Board. B. New Business and Announcements This item provides a section for Council Members to suggest items for future agendas, request information from the City Manager, and/or make announcements of public interest. C. City Manager's Report D. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. E. 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 , 2007 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 1N 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: June 19, 2007 Questions regarding this report maybe directed to DEPARTMENT: Fiscal Operations/Risk Management Scott Payne at 349-7836 ACM: Jon Fortune ~TIR.TF,CT Receive a report, hold a discussion, and give staff direction regarding Request for Proposal (RFP) #3723, Administrative Services Only (ASO) for Medical and Pharmacy Benefits. BACKGROUND At a Council meeting on December 19, 2006, the Council gave direction to staff to move toward a self funded health and pharmacy benefits program. A comprehensive RFP was developed and distributed in March 2007. The City received 19 responses to the RFP from a variety of providers, including insurance companies, third-party administrators (TPA) and pharmacy benefit managers (PBM). The Risk Management staff and the City's benefits consultant, McGriff, Seibels and Williams, evaluated the proposals and chose the top seven to be given to asix-person evaluation committee for further review and scoring. The evaluation committee selected four finalists who were brought in to make presentations to the City's Employee Insurance Committee (EIC) and to participate in a detailed Question & Answer (Q&A) session with the review committee. Staff and the evaluation committee performed a thorough review of the RFP's, considered the information and quality of the presentations, and weighed the credibility and expertise of the vendor staff participating in the Q&A session. Factors such as overall cost, customer service, long-term partnership with the City, provider network disruption, flexibility of systems, and integration with outside vendors were all evaluated. Please refer to Exhibit 1 -RFP #3723 Evaluation Summary Report, for additional details regarding the evaluation process and recommendations. RECOMMENDATION The evaluation committee and staff recommend entering into contractual negotiations with Fiserv Health, for self funded medical benefits administration, and with Express Scripts, for self funded pharmacy benefit management services. Agenda Information Sheet June 19, 2007 Page 2 ESTIMATED SCHEDULE OF PROJECT June 20, 2007 -Begin contract negotiations and plan implementation July 1, 2007 -Submit RFP for stop loss insurance coverage July 24, 2007 -Present final TPA and PBM contracts for Council approval August 21, 2007 -Present stop loss contracts for Council approval September 24, 2007 -Begin open enrollment process January 1, 2008 -Self funded plan year begins PRIOR ACTION/REVIEW (Council, Boards, Commissions) The City Council received a White Paper on April 4, 2005, that included a discussion of moving to a self funding benefits program. The Audit Committee has reviewed the issue of moving to a self funded medical and pharmacy benefits program during discussion of an Issue Paper on July 14, 2006, and September 13, 2006. The Council approved moving to a self funded program during a work session discussion on December 19, 2006. FISCAL INFORMATION A new internal service fund will be established to separately track medical and pharmacy administrative costs as well as medical and pharmacy claims cost. The following demonstrates the estimated 2008 total plan costs for employees, dependents and retirees and the savings resulting from changing to a self insured plan. This includes an anticipated 7% rate increase in 2008. Fully-Insured Self Insured Self Insured Savings Fiserv/Express Scripts $13,955,475 $12,507,993 X1,447,482 BID INFORMATION The RFP and Vendor List is available should the Council wish to review them. F,XHIRTTS Exhibit 1- RFP #3 723 Evaluation Summary Report Exhibit 2 - RFP #3723 Scoring Tool Exhibit 3 -Council Presentation Respectfully submitted: Scott Payne Risk Manager Exhibit 1 RFP #3723 Evaluation Summary Report DESCRIPTION On December 19, 2006, the City Council received a report regarding the City's plan to move to aself-funded medical and pharmacy benefits program effective January 1, 2008. After discussion, the Council extended its support of this plan. REQUEST FOR PROPOSAL (RFP) PROCESS, RESPONSE AND EVALUATION In March of 2007, the City submitted RFP #3723 -Administrative Services Only (ASO) for Medical and Pharmacy Benefits to the marketplace with a due date of April 5, 2007. The RFP document is not included in this report, but it can certainly be made available upon request. The City received a total of 19 responses to the RFP. Proposals were submitted by insurance carriers, who typically provide both fully-insured health benefits as well as services to self-funded clients, third-party administrators (TPA), who specialize in providing services to self-funded entities, and pharmacy benefit managers (PBM), who provide self-funded pharmacy benefits. Table 1 provides details regarding the companies that submitted responses. Table 1-RFP #3723 Respondents Combany Name T T e Aetna Insurance Com an American Administrative Group Third-Party Administrator Blue Cross Blue Shield of Texas Insurance Company CIGNA Insurance Com an Express Scripts Pharmacy Benefit Manager Fiserv Third-Party Administrator Great west Third-Par Administrator Group & Pension Administrators Third-Party Administrator Health Smart Third-Party Administrator Healthtrans Pharmac Benefit Mana er Medco Pharmacy Benefit Manager Meritain Health Third-Party Administrator Mutual Assurance Administrators Third-Par Administrator Navitus Pharmacy Benefit Manager Scott & ~Xlhite Prescription Services Pharmacy Benefit Manager Texas Munici al Lea ue Insurance Pool United Healthcare Insurance Company ~lalgreens Health Pharmacy Benefit Manager ~1ellD ne Rx Pharmac Benefit Mana er * -Current provider of fully-insured health benefits ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 These 19 proposals were reviewed and evaluated by Risk Management and the City's benefit's consultant, McGriff, Seibels and ~Xlilliams, and narrowed down to seven (two insurance companies, three TPA's and two PBM's) proposals to be reviewed by the evaluation committee. The six-person evaluation committee used a comprehensive scoring tool (see Exhibit 2) to evaluate each of the proposals in accordance with the criteria outlined in the RFP. This included customer service and professional competency (20%), scope of services (20%), cost of services and network discounts (20%), provider disruption (15%), financial stability (10%), reporting capabilities and data management (5%), references and experience with similar clients (5%), and multi-year rate guarantees (5%). Table 2 below illustrates the final scores (out of 100 possible points) by the evaluation committee. Table 2 -Evaluation Committee Scores Com an Name Total Score Medco (PB1V~ 80.96 Ex Tess Scri is B1V~ 77.44 Fiserv A) 77.28 United Healthcare (Insurance Com an) 76.29 CIGNA nsurance Com an) 66.67 Great West PA) 65.93 Grou & Pension Administrators A) 64.87 Based on the results of the scoring evaluation, Medco (top ranked PBM), Fiserv (top ranked TPA) and United Healthcare (top ranked carrier) were selected as finalists and brought in for presentations to the Employee Insurance Committee (EIC) and a question & answer (Q&A) session with the evaluation committee. Express Scripts was later added to the finalist list and asked to provide a presentation and Q&A session for the evaluation committee as well. Reference checks were also performed on all finalists. COMPARISON OF MEDICAL BENEFIT SERVICE PROVIDER FINALISTS The two medical benefit related responses that ranked the highest were Fiserv (TPA) and United Healthcare (UHC) (insurance company). The following sections discuss the merits of each regarding the administration of the medical benefits only. The provision of pharmacy benefits will be discussed later in the paper. 1. TPA vs. Insurance Carrier - As illustrated in Table 2 above, the total scores for (UHC) and Fiserv were very close. Both are large companies that have a good reputation in the marketplace for providing administrative services to self-funded entities. while UHC is an insurance company that also provides self-funded administrative services, Fiserv is a TPA that specializes in providing self-funded services. UHC is offering the City the same services (disease management, wellness, cost containment, etc.) on aself-funded basis that they currently provide under our fully- 2 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 insured program. These services are included in their per employee per month (PEPM) administrative fee, regardless of whether all the services are utilized by the City. Fiserv is offering the City many of the same basic services as UHC as part of their PEPM fee, but other programs are offered on an "ala carte" basis. In this way, the City is able to pick and choose what additional services we feel have the most value to our benefits program and only pay for the services that are used. Another difference between a TPA and an insurance company is the level of flexibility and customization with regard to plan and benefit design. ~Ihile UHC will be much more flexible and creative in these areas for the City as aself-funded client, there are still system limitations based on their fully-insured products. Since the self- funded marketplace is all Fiserv focuses on, their systems are designed to be very flexible and to allow for many different plan designs and benefit levels. 2. Administrative Costs - As mentioned above, Administrative fees are based on a PEPM charge for each employee and retiree enrolled in health coverage. Administrative fees are typically charged for claims processing, network access fees, disease medical management, stop loss interface, etc. Table 3 illustrates the total Administrative fees proposed by UHC and Fiserv. Table 3 -Proposed Administrative fees (PEPM) UHC Fiserv Administration $29.62 $13.50 Network Access Fee N/A $ 3.75 Sto Loss Re ortin /Interface $ 1.00 $ 1.25 Medical/Disease Mana ement Included in Admin $ 6.50 United Behavioral Health $ 3.53 Included above Nurseline $ 1.10 Included above Fiducia $ 0.75 Included above TOTAL PEPM $36.00 $25.00 ESTIMATED ANNUAL ADMINISTRATIVE COST $493,344 $342,600 The Administrative fees cover the overall administration of the program including claims processing, day-to-day customer service, reporting, trend analysis and benefit design evaluation, etc. In the case of UHC, it also includes fees to interface with an outside PBM for pharmacy benefits. The Network Access fee is the fee charged to Fiserv by Texas True Choice (TTC) for access to their network. Since UHC owns their network, there is no Network Access fee. Both UHC and Fiserv are charging a Stop Loss fee for interfacing with an outside stop loss carrier. This fee includes costs for data sharing and reporting. 3 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average ~X~holesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 The Medical~Disease Management fees encompass all programs and processes related to managing the medical claims. This includes large case management, disease state identification, and wellness programs among others. Fiserv's proposal lists these services with a separate fee while UHC includes this in their Administration fee. Additionally, Fiserv includes a 24-hour "nurseline" as part of their medical disease management fee while UHC proposes a separate, $1.10 PEPM fee for this service. Similarly, while Fiserv includes their behavioral health programs in the Administrative fee, UHC lists this service separately. UHC is proposing an additional fee to act as the fiduciary for the City's self-funded plan. Fiserv is proposing limited fiduciary responsibility as part of their administrative fee. The final fiduciary arrangements will need to be negotiated as part of the contract between the City and the selected medical benefits service provider. As Table 3 illustrates, Fiserv's administrative costs are $11.00 PEPM (approximately $150,744 annually) less than the Administrative fees proposed by UHC. Additionally, Fiserv will guarantee their Administrative fees for three years while UHC is only offering these rates for one year. 3. Network Discounts and Disruption -while Administrative fees are an important consideration in the total cost of aself-funded health plan, the cost of the actual medical claims is the most significant piece of the comparison. Both Fiserv and UHC have proposed various programs to assist in reducing our overall health care costs; however, the percentage of negotiated discounts within the medical provider network may have the greatest impact on the ultimate cost of medical claims. UHC's proposal includes the network of physicians and facilities currently being accessed by our employees, dependents and retirees. This network has contracted rates with the medical community that yield an approximate savings of 48.8% off of billed charges. In order to compare that network discount with the discount offered by Fiserv, through the TTC network, UHC provided TTC with approximately six months of paid claims to be re-priced through the TTC network. This re-pricing exercise demonstrated that the TTC network discount is approximately 45.6% off of billed charges. Given the City's projected claim cost for 2008, this 3.2% difference in discount rates equates to approximately $307,000 in additional savings from the UHC network as compared to TTC. Table 4 details the breakdown of discounts within the UHC and TTC networks by physician and facility. Table 4 -Network Discount Com parison UHC TTC Physician Discount 46.1% 42.5% Facilit Discount 51.0% 48.2% Total Discount 48.8% 45.6% 4 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 Another important consideration when evaluating a possible change in provider networks is the disruption that our members may experience if their physician, or a facility they utilize, is not part of the new network. If the City chooses to go with UHC on aself-funded basis, we will continue to access the same network so there will be no disruption to our members. Fiserv and TTC performed a network disruption analysis based on our utilization with UHC to see how many members would be impacted by a change to the TTC network. This analysis showed that approximately 99.5% of the physicians and 91 of the facilities accessed by members are part of the TTC network. The only major provider not included in the TTC network is the North Texas Hospital. This facility has only recently been added to the UHC network. 4. Total Cost -Table 5 details the total estimated medical claim and administrative costs under the UHC and Fiserv proposals for 2008. These totals do not include pharmacy claims or pharmacy administration expenses. Table 5 -Total Self-Funded Health Cost Comparison UHC Fiserv Administration (Health) $ 493,344 ~ 342,600 Health Claims $ 9,605,657 $ 9,913,038 Total $10,099,001 $10,255,638 As presented, the Fiserv proposal is estimated to be approximately $156,637 more expensive than the program proposed by UHC. The major difference is in the network discounts that are obtained with the UHC provider network when compared with the TTC network. It is estimated that the City's total fully-insured health claims and administrative expenses (not including pharmacy or pharmacy Administrative fees) with UHC for 2007 will be $11,400,000. Based on that estimation, both proposals offer significant savings over our current fully-insured program costs. And while UHC's proposal is slightly less expensive (1.55%), there are many other factors to consider as detailed in the following sections. 5. Integration with Outside Vendors -One of the advantages of aself-funded health benefits program is the ability to partner with other providers for specific services related to the delivery of health and pharmacy benefits. Under afully-insured program, the City is limited to using the partners selected by the insurance company. One area that is typically separated under aself-funded program is pharmacy benefits. RFP #3723 was designed to allow vendors to propose on both the medical and pharmacy benefits as one proposal, or to bid on either medical or pharmacy separately. The RFP was very clear that the City reserved the right to award separate contracts if it was in the best interest of the City to do so. 5 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 Both UHC and Fiserv submitted proposals for medical and pharmacy as one proposal. However, while Fiserv has indicated a willingness to work with whatever PBM the City may choose at no additional cost, the UHC proposal is very tightly bound to the use of Medco for pharmacy benefits. In fact, UHC charges additional fees to use a PBM other than Medco. 6. Subjective Considerations -While it is easy to quantify the administrative expenses, network discounts and fees to integrate with outside vendors, there are many other factors that go into a successful self-funded program that are not as easy to quantify. However, in many areas these considerations are equally important. ~ Customer Service -The ability of UHC and Fiserv to service the needs of our members and the City benefits staff is extremely important. UHC has done an adequate job in this area but we continue to have ongoing service issues with communication, responsiveness and accuracy of information. Some of these issues stem from the fact that we are afully-insured client and would most likely change under aself-funded program. However, UHC is proposing the same service team currently assigned to the City. Also, many of the issues are due to UHC's "customer service model" and their customer care team approach to providing service. For example, UHC's ratio of customer representatives to members is 1.6:10,000. By comparison, Fiserv's ratio is approximately 1:2,100. Staff is not comfortable that UHC's service model will meet the needs of the City and our members during this important transition. Although we have no experience with Fiserv's customer service capabilities, the overall impression from the RFP, and from their presentation to the EIC, is that they are much more customer service driven. This is fairly typical in the TPA arena as exceptional customer service and flexibility are the areas that differentiate one from another. It is also supported by Fiserv's much more manageable ratio of customer service representatives to members and from reference checks of some of Fiserv's other public entity clients. ~ Flexibility of Systems -Both UHC and Fiserv tout the flexibility of their systems and their ability to customize plan designs and benefit levels. As afully-insured client of UHC, the City has no experience with the flexibility of the UHC system as we did not have many choices regarding benefit design due to state filing mandates (fully-insured health plans must be filed with the State). While the reference checks on UHC indicated that their system was flexible, our dealings with UHC during this RFP process have not necessarily validated those statements. It appears that UHC still offers a fairly static program design, even to their self-funded clients. As with the Customer Service section above, the City has no experience to evaluate how flexible Fiserv's systems are or the level of customization that will be available to us. Based on the RFP and their presentation, the evaluation 6 ASO - Administrati`Te Sercrices Only Q & A -Question & Answer AWP - A`-erage Wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 committee has confidence in Fiserv's ability to meet our needs in this area. Fiserv's reference checks indicated that this was one of their strengths as well. Generally this is an area where good TPA's typically excel. ~ Partnership - In order for the City to build and develop a successful self-funded health benefits program, it is imperative that we find along-term "partner" to assist us. During our time with UHC they have provided expertise and resources to assist the City i_n managing and developing our health benefits program, but it has certainly been under their terms and bound by the constraints of their fully- insured plans. while we have assurances that UHC is a very different company on aself-funded basis, staff and the evaluation committee still have concerns that the City's plan will always be limited by UHC's self-imposed constraints. To some degree we have already experienced this in UHC's response to the RFP and in our discussions with them during the evaluation process. UHC responded to several questions in the RFP with a statement that essentially said "we are the incumbent so we don't have to answer this question" instead of providing the information requested. As we have had ongoing discussions and made requests of UHC during the RFP evaluation process we have been met with questions of "why do you need that" and delays in data being provided. In contrast, Fiserv already feels like a partner to the City in many ways. They have been incredibly responsive and cooperative during the RFP evaluation process. Fiserv has responded to every request that has been made of them in a timely and professional manner. Fiserv's response has always been "Tell us what you need and we'll get it for you." Staff and the evaluation committee believe strongly that this will continue to be Fiserv's approach to servicing our account and that they will be that long-term partner to help the City achieve a successful self-funded health benefits program. There is no question that the transition from UHC on afully-insured basis to a self-funded program under UHC would be easier and have less disruption to our members and to staff. However, it is important that we do not use the possibility of a little chaos during the transition period as a reason not to develop a relationship with along-term partner. ~ Access to Other Resources -One of the advantages of partnering with a large insurance company like UHC is that due to their size, they have strategic relationships with many other companies and vendors for health related services. For example, through UHC, the City has developed a relationship with Pfizer to assist us with many facets of our annual Benefits & wellness Fair. Pfizer helps defray the cost of many of the blood draws and health screenings, provides numerous "give-aways" and educational information, and provides additional health care related vendors. At this time it is unknown if those same types of 7 ASO - Administrati`Te Sercrices Only Q & A -Question & Answer AwP - A`-erage wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 relationships are in place with Fiserv and if available, if there is an additional charge. COMPARISON OF PBM FINALISTS As stated previously, one of the major advantages of aself-funded health benefits program is the ability to gain more control of the City's benefit program. One way of gaining control is for the City to have direct contracts with, and therefore a direct relationship with, all the various parties who provide specific services related to the delivery of health and pharmacy benefits. In order to accomplish this, the City developed the RFP to specifically allow us to carve-out the pharmacy benefits to the PBM that was most advantageous, without it necessarily being tied to an insurance carrier or TPA. This entails a separate review of the various PBM's. The two highest ranked, stand-alone PBM's after the review process were Medco (the City's current pharmacy provider through contract with UHC) and Express Scripts. 1. Administrative Costs -Administrative costs for PBM services can be charged for a variety of services. In some contracts, there is an administrative fee for each prescription processed. In other contracts the fee is referred to as a dispensing fee per prescription. Table 6 details the proposed Administrative fees for both Medco and Express Scripts. Table 6 -Proposed PBM Administrative fees Medco Express Scripts Per Scri t Annual Est. Per Scri t Annual Est. Admin. Fee $ 2.60 $ 78,718 $ 0.00 ~ 0 Dis ensin Fee $1.75 $ 49,830 $1.50 ~ 42,711 Total $128,548 $ 42,711 Because of the administrative fee charged by Medco, their estimated annual costs are approximately three times more than those proposed by Express Scripts. 2. Rebates -Another component of the total cost of aself-funded pharmacy benefit program is the way that pharmaceutical company rebates are handled by the PBM. Rebates are payments made by the drug manufacturers to the PBM and are essentially incentives for the PBM to keep certain drugs on the PBM's formulary (list of approved drugs). Rebates may be based on the volume of the drugs that are sold and by the tier, or copayment level, that the drug is in. In many cases the PBM will seek to keep all of the rebates. In the RFP the City requested that at least some level of rebates would be shared with the City and that the total amount of any rebates would be disclosed to the City. This will help to achieve transparency within our pharmacy program and ensure that 8 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 the City understands the true costs of our pharmacy benefits and the impact of all incentives the PBM may be receiving from pharmaceutical manufacturers. Table 7 illustrates the rebate distribution proposed by both Medco and Express Scripts, including the guaranteed rebate amount per prescription. Table 7 -PBM Rebate Distribution Medco Express Scripts Per Scri t Annual Est. Per Scri t Annual Est. Retail $10.50 $ 298,977 $ 3.00 $ 85,422 Mail-Order $ 27.00 $ 48,654 ~ 12.00 $ 21,624 Rebate M t Fee 15%) $ 52,145) N/A Total $ 295,486 $107,046 Medco has proposed a much more aggressive guaranteed rebate amount than Express Scripts, but also charges a 15% Rebate Management Fee. However, even with this Fee it is estimated that Medco would return to the City $188,440 in additional rebates over the Express Scripts proposal. It should be noted that currently the City does not receive any rebates under our fully-insured contract with UHC. Any rebates that are available are retained by UHC and/or Medco. 3. Network Discounts and Disruption - As with the evaluation of the medical component providers, the most important consideration is the discounts obtained by the PBM with the pharmacies and the pharmaceutical manufacturers on the drugs that are prescribed to the members. Unfortunately while it is fairly straightforward to compare physician and hospital discounts, it is much more difficult to compare drug discounts. It seems as if each PBM uses a different method to calculate and present the estimated savings. The term Average ~Xlholesale Price (AwP) is still generally accepted as the standard method of evaluating the cost of a particular medication. AwP is based on data obtained from drug manufacturers, distributors and other suppliers as reported by services such as First DataBank or Red Book. Savings are portrayed as AEI' minus some percentage or AWI'-x%. Table 8 lists the retail and mail order drug discounts for brand name and generic drugs as proposed by Medco and Express Scripts. Table 8 -Proposed Pharmaceutical Discounts Medco Ex Tess Scri is Brand -Retail AwP-16.50% A~XIP-16.50% Generic -Retail AwP-54.00% A~XIP-54.00% Brand -Mail Order AwP-23.25% A~XIP-24.00% 9 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average ~X~holesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 Generic -Mail Order AwP-62.00% A~XIP-54.00% Both Medco and Express Scripts report very similar discounts off of A~XIP. ~XIe were unable to perform a re-pricing study, as we did with the medical claims, since UHC would not release the drug data to Medco for that purpose (even though Medco already had the information as our current provider). However, the only significant area of difference is on generic medications through mail order where Medco shows an 8% higher discount. Since mail order prescriptions currently represent a much smaller percentage of our total drug claims than retail, the overall plan savings would be negligible. Another consideration when evaluating the network of retail pharmacies is the level of disruption that will be experienced by our members. Since Medco is our current provider of pharmacy benefits, there will be no network disruption. Under the Express Scripts proposal, all the major chain pharmacies are included in the network, as well as a number of local pharmacies. Although a complete network disruption was not performed, it appears that there will be minimal negative impact to our employees. Additionally, while we certainly want to minimize disruption to our members, unless the member lives in a rural area with few pharmacy options, changing pharmacies is more palatable than changing physicians. 4. Total Cost -Table 9 shows the total estimated administrative and dispensing fees, as well as the estimated rebate savings and pharmacy claim costs as proposed by Medco and Express Scripts. Table 9 -Total Self-Funded Pharmacy Cost Comparison Medco Ex Tess Scri is Administrative fees $ 78,718 $ 0 Rx Dispensing Fees $ 49,830 ~ 42,711 Rebates ~ 295,486) $ 107,046) Pharmacy Claims $1,700,000 ~ 1,700,000 Total $1,533,062 $1,635,665 As presented, the Medco proposal is estimated to be approximately $102,603 less expensive than the program offered by Express Scripts. The major difference is that the level of rebates guaranteed by Medco is considerably higher, even with the Rebate Management Fee, than what is offered by Express Scripts. Express Scripts has evaluated our pharmacy claims cost and believes they can achieve a higher generic drug utilization rate, based on their overall book of business. Express Scripts estimates they would be able to lower our overall pharmacy costs by approximately X50,000 over what we currently pay. 10 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 5. Subjective Considerations - As with the medical benefits evaluation, it is also important to consider factors that are not as easy to quantify as administrative costs, dispensing fees, rebates and drug discounts. ~ Partnership - As previously stated, it is imperative that the City find a strong partner to help us develop and maintain a successful self-funded medical and pharmacy benefits program. ~Xlhile the pharmacy claim dollars aren't as significant a number as the medical dollars, the pharmacy benefit is still probably the most utilized benefit offered. Even though Medco is currently the City's provider of pharmacy benefits, we don't really know what type of partner 1Vledco can be since our relationship with them is filtered through our contract with UHC. For example, there have been numerous communication issues regarding changes to the pharmacy program, both in terms of notification to City staff as well as to the members. whether this is truly a Medco issue or more of a UHC issue is not clear. In that regard, Medco on aself-funded basis is as much of an unknown as Express Scripts. ~ Presentation and Q&A -Following the scoring evaluation, the finalists were selected and asked to prepare a 20 minute presentation for the EIC followed by an hour long Q&A session with the evaluation committee. One of the requests we made of each of the finalists was that the individuals making the presentations be some of the same people that would be working on the City's account. This would give us a better feel for who we would be working with instead of just hearing a sales pitch from people we would have no day-to-day dealings with. Medco was the highest rated responder following the scoring evaluation. They submitted a high quality proposal that was extremely responsive to our questions. However, Medco's presentation was not of the same quality as their proposal. Based on the presentation of the service team, both the EIC and the evaluation committee questioned whether Medco had the ability to provide high quality service to the City and our members. Because of the poor performance in the presentations, the evaluation committee asked Express Scripts to come in for a finalist presentation. Express Scripts was the second highest rated company to respond to the RFP and only a few points behind Medco. Staff and the evaluation committee were extremely impressed with the team assembled by Express Scripts and their presentation. The evaluation committee felt very confident that Express Scripts would meet the needs of the City and be a proactive partner in developing our self-funded pharmacy program. 11 ASO - Administrati`Te Sercrices Only Q & A -Question & Answer AwP - A`-erage wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 ~ Interface with Medical Benefits Provider - It is the City's intention to have direct contracts with both the medical benefits service provider and the PBM. Since separate contracts will be involved it is extremely important that the PBM selected is able to interface and exchange data with the medical benefits service provider. Both Medco and Express Scripts are able to interface with either UHC or Fiserv without issues or additional fees. Additionally, Fiserv has indicated that they can work with either Medco or Express Scripts and can integrate the pharmacy data into their system. This includes being able to display either PBM's pharmacy benefit information and claims data as part of Fiserv's member ~Xlebsite. UHC prefers to provide the pharmacy benefits through their contract with Medco and not have astand-alone PBM. UHC can work with both Medco and Express Scripts on a stand-alone basis for additional Administrative fees but can only display information on the UHC website for members if Medco is chosen. RECOMMENDATION As presented in this paper, there are numerous facets to a successful self-funded program and many "moving parts" to be considered when selecting along-term partner to administer the program. The City was fortunate to have many good companies submit proposals in response to our RFP, but that fact also made the task of selecting between them extremely difficult. Based on an extensive evaluation process that included review of the RFP, presentations, Q&A sessions and reference checks, and involved the opinions and ideas of many different people, the evaluation committee, and staff, recommends beginning negotiations with Fiserv, as the medical benefits TPA, and with Express Scripts, as the City's PBM. In both the comparison of the medical benefit providers and of the PBM's, the overall administrative and claim costs are fairly similar. However, in both comparisons the subjective considerations are weighted heavily toward the two companies that are being recommended. In the case of UHC, their overall costs are estimated to be approximately 1.55% less than Fiserv's. But when evaluating other factors such as customer service, flexibility of systems, and partnership, the evaluation committee and staff believe strongly that Fiserv is the better choice. Similarly, while Medco is estimated to be 6.7% less expensive than Express Scripts, when you factor in the lack of confidence that the evaluation committee and staff have in their ability to properly service the City's account, Express Scripts is the best partner. It is important to note that either combination of providers results in a significant savings to the City in terms of total plan cost, both when compared to our estimated total expenditures 12 ASO - Administrati`Te Sercrices Only Q & A -Question & Answer AwP - A`-erage wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 on afully-insured basis for 2007 and when compared to our projected total health care expenditures in 2008 were we to remain fully-insured with UHC. Table 10 illustrates the total plan cost for employees, dependents and retirees under two possible scenarios compared to the 2007 total fully-insured cost. Table 10 - 2008 Projected Self Funded Cost vs. 2007 Projected Fully-Insured Cost UHC Medco Fiserv Ex Tess Scri is Medical Administrative ~ 493,344 $ 342,600 Medical Claims $ 9,605,657 $ 9,913,038 Pharmac Administrative ~ 128,548 $ 42,711 Pharmac Claims ess Rebates) $1,404,514 $1,592,964 Estimated Stop Loss Insurance ~ 616,680 $ 616,680 Estimated Total Self-Funded Cost 2008 x'12,248,743 x'12,507,993 Est. Fully-Insured Premium 2007 ~ 13,042,500 $13,042,500 Estimated Savings $ 793,757 $ 534,507 The calculations in Table 10 include an estimated allowance for stop loss insurance as this is an additional component to the total self-insured plan costs. Stop loss coverage is purchased to help protect aself-insured plan from catastrophic losses and will be bid out once the TPA and PBM are selected. Table 11 uses the same calculations in Table 10, but compares the total estimated self- funded costs for 2008 with the projected total costs were the City to remain afully-insured client of UHC for 2008. Although we do not know what the exact premium increase would be for 2008, our insurance consultant believes that 7% is a conservative number to use for this calculation. Table 11- 2008 Projected Self Funded Cost vs. 2008 Projected Fully-Insured Cost UHC Medco Fiserv Ex Tess Scri is Medical Administrative ~ 493,344 $ 342,600 Medical Claims $ 9,605,657 $ 9,913,038 Pharmac Administrative ~ 128,548 $ 42,711 Pharmac Claims ess Rebates) $1,404,514 $1,592,964 Estimated Stop Loss Insurance ~ 616,680 $ 616,680 Estimated Total Self-Funded Cost 2008 x'12,248,743 x'12,507,993 Est. Fully-Insured Premium 2008 X13,955,475 $13,955,475 Estimated Savings $ 1,706,732 $ 1,447,482 The estimates provided in Table 10 and Table 11 serve to reinforce the fact that moving to a self-funded health benefits program should provide substantial savings to the City when 13 ASO -Administrative Services Only Q & A -Question & Answer AwP -Average wholesale Price RFP -Request For Proposal EIC -Employee Insurance Committee TPA -Third Party Administrators PBM -Pharmacy Benefits Manager TTC -Texas True Choice PEPM -Per Employee Per Month UHC -United Healthcare Exhibit 1 compared to afully-insured program. Since savings are achieved under both scenarios it is important to look beyond the bottom line costs and choose the TPA and PBM that staff and the evaluation committee believe will perform the best in terms of servicing the needs of the City and our plan members. >\TUT cT~nc Once the medical benefits service provider and PBM are selected, staff and our benefits consultant will begin negotiations with those providers on an acceptable contract. There are many terms and conditions within the proposed contracts that will need to be evaluated and negotiated before a final contract can be presented to Council. The goal is to have this completed and on the agenda for approval at the July 24, 2007, Council meeting. while the contracts are being negotiated staff will also begin preliminary discussions regarding implementation in preparation for open enrollment beginning in late September and plan implementation January 1, 2008. The City will also implement the change to the retiree subsidy that has previously been discussed with Council. Beginning in 2008, the subsidy will be based on the number of years of service the retiree has with the City instead of the flat rate that is currently being applied. Additionally, after the City's self-funded partners have been identified, the RFP for stop loss insurance will be submitted to the market. 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G ~ ~ ~ 0 ' + ~ ~ 0 ~ ~ ~ ~ ~ ~ 0 - 0 ~ ~ ~ ~ op ~ c~ ~ ~ O ~ O f6 O ~ r-I ~ ~ ~ N ~ }' ~ C 'L ~ I~ f0 rl r-I Q) rl ~ rl rl f~ cn ~ rl L N - i qA ~_ •L O U t/') ~ ~ ~ C = C ~ ~ ~ V V U N ~ ~ ~ ~ ~ M m m N N N rl t-I eel ~ U ~ OJ 4A •~ ~ ~ vOi ~ ~ N L +, 4A ~ >' ~ 0 ~ 4A 0 ~ L _ ~, o ~ ~ ~ ~; p ~ 0 3 Q ~ ~ ~' • ~ ~ Q J (6 Q ~ L 0 ~ ~ ~ ~ ~ ~ ~ N i ~ v O C , C c6 s ~ '} Q ~ ~ p v ~ +~ O Q v ~ 0 ~ ~ ~ ~ L ~ ~ ~ L ~ ~ v (~ ~ Q ~' ~ ~ ~ !n ~ O ~ O •~ ~ ~ ~ S . ~ N N ~ } N ~ ~ N N 0 (a f0 ~ ~ ~' ~ v f0 ~ ~ N ~ ~ 0 `~ 0 ~ ~ ~ . i L N (0 N ~ ~ U L N '+~ ~ N ~ ~ 0 u °' N ~ (~ ~ a 3 ~' 0 ~ v v1 ~ ~ ~ ~ (~ v o - > u ~ ~ ~ ~ ~ •> ~ p N L 0 ~ ~ 0 U ~ Q ~ ~ ~ 0 U ~ ~ N ~ cn ~ ±~ ~ ~ +~ ~ ~ ~ U .~ ~ ~ v 4A ~ ~ Vf C v > Vf ~ L 0 N 0 O ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ Q ~ QJ ~ ~ N ._ N ~ ~ ~ 01 ~ ~ 0 0 0 :~ ~ ~ 4A ~ ~ ~ N }' ~ f6 .~ ~ t ~ ~ 0 U ~ N ~ ~ ~ ~ L ~ }' ~ ~ ~ ~ N +~ C ~ _ ~ 0 N N ~ N ~ _ +~ L ~ ~ O (~ ~ _ c~ - biA ~ bA . • 3 0 ~ ~ ~ ~ ~ ~ v ~ ~ ~ ~ () ~ ~ V \ v ~ ~ ~ S ~ 0 O ~ L ~ ~ ~ ~ ~ ~ •~ ° i N ~ 0 > s ~ N ° ~ a~ ~ L ~ ~ Q ~ 0 Q 0 N L ~ M ~ ~ ~ ~ ~ 0 S ~ ~ O ~ ~ OC ~ OC ~ ~ 0 0 ~ cn ~ ~ ~ U ~ ~ •~ v ~ ~ •L S ~ laA C U ~ ~ ~+ ~ ~' u ~ +~ ~ 01 +~ N ~ ~ ~ ~ v +, 3 ~ u o 0 +~ Q o ~ c~ ~ r~ c~ ~ a~ ~ ~ ~ ~ , ~ U ~, ~ ~ ~ > o o +~ ~ o L ~ N ~ ~ ~ 4A ~a ~ -, ~ N L N u ~ Q o ~ L 0 ~ ± 3 ~ ~ 3 + N ~ u ~ O N .~ ~ > N ~ 3 ~ ~ to to a, °° ~ ~ o v ~ ~ a, ~ a ~ ~ U v a ~ ~ ~ ~ ~ u~ L ° a ~ s *' ~ 0 ~ ~ ~ o v an o ~ +~ .~ ~ ~ O ~ p +~ ~ ~ r~ ~ ~ ~ 0 ~ ~ ° ~ v o +~ v ~ ~ v ~ ~ ~ Z ~ ca ±~ ~ ~ ~ ~ ~ ~L 0 +~ ~ O v t ~ ~ ~ ~ ~ •~ v ~ ~ ~ ° ~ ° + ~ ~„ O 0 s p v 0 s 4J ~ _ ~ L ~ cn ~ ~ v ~ ~ L ~ 0 ~ ~ ~ ~ Q ~ ~ ~ ~ ~ ~ ~, ~, ~ ~, 3 ~ o ~ ~ V ~, ~ ~ ~ ~ V ~ ~ ~ 0 U ~ ~ o U ~ ~ a~ ~ ~ ~ ~ L f6 v +~ ~ +~ 0 ~ (~ C ~ ~ rjp ~ 0 N ~ ~ N N ~ ~ S •u O O ~ u1 L 0 ~ O1 +~ C f6 O ~ ~ L c}n ~ ~ N ~ N ~, ~ 0 ~ S ~ _0 +~ +, L ~ ~ ~+ ~ ~+ ~ ~ d1 0• L 0 L ~ 0 Q ~ U +, N ~ O ~ p ~ ~ ~ ~ ~ +' ~ U O ~ ~ V1 N ~ +~ U ++ ~ +~ v - 0 > Q 0 0 ~ ~ ~ ~ ~ a c L ~, ~ O ~ ° a ~ z o > ~ ~ ~ ~ + z o •o • ~ u ~ ~ a ~ ~ O O ~ __ •? ~ C ~ O }' O L N aJ ~ N ~ ( wn p +~ u N t ~ ~ 0 C 0 (wn L ~ L (a N s ~ 0 - 0 ~ 0 0 H ~ +~ X 0 H ~ 7 ~ V ~ l~ Q ~..r V ~ ~ V V1 V V V Q~ ~ ~ V ~ ~..~ V ~..~ ~ w ~..~ qA ~_ 'L O U t/') ~ ~ ~ C C C ~ ~ ~ V V V N ~ N ~ ~ ~ M M M N N N rl t-I rl ~ ~ ~ ~ N ~ ,~ ~ O - ~ ~ c~ +~ ~ ~ >. ~ 3 - s '~ L ~ O ~ ~ _ ~ .N ~ L ~ ~ ~ ~ ~ ~ O O ~ O ~ ~ ~ ~ ~ O ~ ~ ~ ~ O ~ ' ~ ~ O ~ ~ ` U L ~ O N N~ }' U~ ~ ~ f6 `~ OJ - L L 0 •U j U ~ O N E ~~ '> ~ ,~ p ~ U 0 +~ v1 QJ O Q i `~ O L ~~ ~ ~ (, ~ ~ ~ +, ~ ~ ~ ~ ~ O ~ O ~ ~ ~ .~ U 01 ~ L ~ ~ ~ N L ~ ~ ~ U ~ ~ ~ f0 ~~ ~ 01 ~ 0 ~ i O ^1 ~ N W ~ ~ ~ +~ f6 N ~ =_ fa ~ O ~ U C ~ ~ O . ~..1 O L (n ~.d ^ ~.L ~ ~ .1 >~ ~ ~ ~ L ~ ~ S ~ ~ ~ ~ }1 S ~„~ }~ L O 'L ~..1 V~ O ~ ~ ~ U O N al ~ O Q ~ Q ~ ~ +.+ ~ O ~ ~, +~ L L ~ ~ N O = L ~ O Q ~ ~ ~ . ~ 0 i ~ ~ ~ ~ _V > ~ _~ N ~ to p ~ ~ fa ' +~ ~+ ~ 0 C c6 bA ~ ~ 0 m Q ~ ._ cn N ~ +~ f0 ~ +~ ~ Q t' L ~ 0 ~ ~ ~ ~ ~ >, ~ ~ + '~ ~ (a ~ C 0 C c6 bA ~ ~ 0 ~ ~ ~ V N cn ~ ~ ~ ~ N ~ i ~ 41 U U ~ U ~ ~ QJ . ~ > ~ L ~ (~ ~ a L ~ L ~ O ~ S ~ L ~ aJ qp ~ p ~ }' L f~ p ~ }+ ~ ~' N ~ ~ f0 N f6 p ~' ~ L O ~ _ ~ ~ ~ ~ to OC ~ ~ U ~ ~ cn ~ ~ ~ U `~ ~ ~ a ~ ~ ~ ~ O `~ U ~ ~ ~ ~ ~ ~ ~ 4J ~ ~ }' ~ ~ ~ ~ ~ ~ ~ OC L ~ 0~ c C . ~ v1 }, N C ~ ~ `~ ~ ~ ~~-, ~ ~ +~ O ~ tI) ~ ~ Q }, ~ LA L ~ ~ (~ ~ t!1 ~ ~ ~ ~ O ' '~ O L L L ~ ~ ~ ~ +~ D >` ~ 4J ~ - ~ ~ ~ ~' ' - ~ ~ ~ N ~ ~ - V 41 N - O '~ O 01 ~ 4J ~ ~ +~ ~ ~ ~ L - _ t/1 +~ +~ +~ ~ V 3 ~ ~ 0 ~ ~ ~ ~ Q Q f0 ~ f6 ~ f0 }' ~ }, ~ O .L ~ ~ 0 ~ c U ~ ~ ~ a~ ~ - ~ a a v~ a ~ L ~ 3 i ~ o ~ v ~ ~ ~ c U °' . s ~ ~ a ~ . ~ ~ ~ ~ ~ a ' ~ ~ ~ ~ s v 3 u° ~ ~ a ." a~ s ,, ~ 0 ~ ~ Q~ a a p bA ~ ~ N ~ ~ ~ L .~ ~ __ '~ ~ ~ N ~ ~ ~ w ~ 0 ~ a,o to ~ ~ L c ~ (~ u ~ c~ ~ - s ~ ~"~ ~ ~"~ ~ ~ a~ ~ ~ ~ L ~ Q ~ = Q ~ O O ~ ~ O O ~ ~ O L ~ ~ i O ~ ~ ~ L +~ ~ ~ ~ ~ ~ 0 ~ ~ Q C C ~ Q ~ ~ v1 ~ ~ ~ >, N +~ ~ ~ ~ r~ 3 +~ +~ ~ ~ a~ r~ s ~ ~ o ~ o ~ 'u '> v ~ c r~ ~ ~ 0 ~ ~, a ~ f6 L ~ ~- ~ ~ O ~ ~ ~ ~ ~ ~ ~ r-I ~ ~ N ~ ~ ~ Lf~ ~ ~ 00 ~ f0 i OJ ii ~~ o a ~ a r~ a~ a o a ii qA ~_ 'L O U t/') ~ ~ C C ~ ~ V V N ~ ~ ~ M M N N rl t-I N Q ~ U 0 f6 ~ N ~ >~ .~ 0 +~ f~ ~ ~ ~ ~ ~ cn 0 - }' 0 l~ U N ~ ~ cn +~ ~ 0 f~ ~ - ~ ~ 0 ~ o E ~ N ~ V o ~; +~ _ p ~, a ~ ~ C ~ m ~ ~ L ~ 0 V ~ aJ +~ >~ 0 ~ ~ ~ . - ~ ~ v L ~ ~ ~ Q ~ ~ ~ ~ ~ U ~ ~ ~ ~ ~ 0 L ~ ~ 0 ~ ~ ~ ~ ~ ~ O ~ +~ f~ 4J U Q 0 ~ ~ > 0 L c6 vi cn ~ X cn N ~ , ±~ qA ~ ~ ~ N L 0 C ~ 1} ~ ~ ~ ~ ~ ~..~ }~ (, ~ ~ L 0 L ~ M1, ~ L ~ ~ Q~ ~ ~ U ~ ~ ~ .U ~ ~ L ~ ~ ~ ~ ~ ~ ~ ~ ~ L ~ ~ C ~ L1A p ~ LL QJ ~ L Q V 0 (~ O (0 ~ ~ t/1 0 N ~ „ 0 ~ ~+ L L +, ~ ~ ~ - ~ ~ 0 ~ C f0 L N ~ ~ 0 ~ N ~ ~ ~ ~ ~ U ~ ~ ~ 0 ~ ~ N v U ~ ~ v ~ ~~+ ~ .~ ~ ~ ~ .3 3 ~ ~ 0 ~ Q ~ 0 U ~ C >~ ~ ~ 0 ~ ~ c~ ~ ~ ~ ~ ~ u ~ ~ ~ ~ + ~ ~ ~ ~ ~ ~ v ~ .~ c~ .-. a ~ ~ }' ~ ~ ~ aLj 0 _ ~ ~ ~ ~ ~ ~ o ~ ~ o ~ ~3 .L L Q ~ ~ S G U ~ ~ O L 0 ~ L ~ , ~ ~ ~ .U ~ ~ a ~ L ~ ~ f0 ~ 4.l N (~ U 0 a,,, ~ C fa ~ L ~ ~ ~ L U L o ~ °~ ~ ~ ~ ~ ~ ~ c ~ a~ " ~ ~ a~ ~ U ~ L Q ~' 3 ~ ~ v ~ ~ U ~ ~ o ~ ~ a~ ~ ~,, a~ ~ Q ~ ~ ~., ~ ~ • _ ~ 0 +~ ~ ~ ~ ~ -_ a~ ~ ~ c ~ L o m ._ c 0 ~ +~ Q 3 ~ ~ - o ~+ +, f0 ~ ~ ~ ~ ~ ~ ~ ~ N ~ ~ 0 ~ 0 `~ N 0 C ~ ~ ~ ~ L 0 N C Q ,~ ~ ~ L - ~ ~ C 0 ~ ~ ~ L 0 ~ ~ ~ L 0 a", ~ N ~ f0 L v fL6 N U ~ ~ ~ ~ .~ ~+ ~ +~ ~ N ~ +~ cn - l~A ~ L ~ aJ N c~ ~ • • ±' ~ v L ~ ~ `~ t/1 o ~ +~ C ~ a.., +~ ~ 0 +~ ~ c p ~ ~ ~ QJ ~ 0 U 3 0 a~ r~ ~ to ~ L o ~+ L ~ n~ ~ 'V ~ ~ ~ O ~ O Z ~ ~ ~ ~ L ~ ~ QJ ~ r~ ~ +, ~ L N ~ `~ N C L Q o U L N ~ +~ ~ N ~ ~ L . N ~ N ~ ~ L O ~ Q ~ ~ V c~ + ~ ~ 0 > 4J ~ 0 ~ ~ ~ 0 ~ o ~ ~ ~ ~ ~ ~, ~ ~, ~, a~ ~ a~ v a~ +~ ~ ~ ~ ~ u° 0 ~ 3 L ~ ~ p ~ ~ ~ p `~ ~ }' 3 N a ~ o >~ ~ ~ U ~ ~ v `~ ~ ~ v~ o ~ t v ~ ~ ~ ~ ~ '~ ~ 0 v - ~ 0 ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ u ~ a~ ~ > >. ~ ~' ~ ~ o ~ o c . ~ ~ ~ ;v ~ ~ c ~ ~ ~ ~ ° ~ ~ `~ ~ a v a ~ ~ ~ `~ a~ ~ ~ .~ c ° ~ ~, + 0 v ~ ~ L ~ +~ ~ ~ ~ ~ ~ ~ ~ ._ an 0 ~ ~ 0 a~ ~ ~ a~ ~ ~ ~ ~ +, v ~ 0 C ~ ~ Q v , ~ p p ~ '~ Q _ '~ {~ N '~ _ 0 ~ f0 U N . ~ N +.+ ~ N v O p W .L ~ ~ Q = o o ~ N r~ ~ ~ ~ N ~ ~ ~, ~ m v ~ ~ ~ ~! 0 00 ~ L L ~ U U .. X ~ +~+ (6 ~ L rl ~, ~ ~' L c-I d c-I ~ . _ N +~ N ~ ~ N Q N qA ~_ •L O U t/') C V N M N rl ~ z U O L D 0 ~ ~ 4A 0 i N ~ ~ U ~ ~ ~ +~ ~ ~ bA ~ + 0 ~+ ~ ~ ~ L O N to ~ ~ •~ ~ }~ L ('L. ~ ~ a O ~ ~ ~ ~ ~ *' ~ ~ ~ ~' L7 3 p U ~ L O ~ ~ ~ L ~ ~ c 0 ~ .~ 0 4J ~ C ~ ~ ~ ~ O C O ~ ~ ~ ~ Q ~ ~ L ~ ~ +~ N ~ ~ 0 ca ~ ~ ~ ~ U v1 L ~ ~ .L L (~ L ~ ~ ~ ~ _ _ ~ ~ U ~ ~ O ~ ~ ~ L ~ [ ~ N {~ L M1' O - • ~ L L ~ ~ >' 4A ~ L ~ Q O N O +' ~ (~ ~ O L ~ Q `~ QJ ~ L ~ ~ +~ N L +~ 0 ~ 'L 0 ~ O A cn 4J Q }+ L f6 ~ ~ ~ ~ O i ~ Q ~ L ~ ~ ~ Q ~ ~ Q ~ ~ ~ ~ ~ V ~ ~ ~ ~ N ~ ~ ~ ~ ~ ~ .~ ~ i ~ ~ ~ ~ ~ N ~ ~ O C U t1A }' ~ 0 U ~ (~ O >. ~ ~ :.. . r~ cn _ a", +~ ~ ~ 00 ~ ~ ~ ~ ~+ ~ ~ N ~ l~ ~ ~ ~ ~ .~ O C ~ 0 ~ ~ ~ r2 S ~ ~ C Q ~ ~ cn ~ N ~ ~ ~ •- L Q 0 ~ ~ V ~ Q ~ u 3 ~, Q L _ o a~ ~ o o o ~ O ~ ~ V ~ L ~ ~ O L O 0 ~ ~ L L 0 L ~ ~ 0 ~ ~ ~ ~ •~ ~ ~ ~ ~ ~ ~ ~ ~ V O U L O ~ ~ ~ L Q ~ }' ~ ~ ~ ~ ~ ~ N L O S >• L O C ~ L ~ O ~ ~ O +' L O ' i O ~ L 0 ~ U (~ O ~ ~ }' ~ U N ~ N ~ ~ ~ VI •- ~ ~ O ~ ~ ~ N L ~ ~ ~ C ~ V1 Q ~ ~ S ~ QJ ~ }' O L >~ N L O ~ V O ~ 4.l U f6 N f0 ~ ~ ~ ~ ~ L cn ~ ~ C O ~ ~ ~ N L 0 ~ ~ ~ N > f~ Q f~ O L ., a - ~ U ~ ~ ~ ~ 0 0 Q .~ ~ ~ ~ v ~ L O MID ~ ~ f6 Q U N 0 0 L +~ ~ ~ 0 Q ~ ~ ~ ~ N ~ 0 ~ ~ +~ cn f0 C ~ +~ p ~ v 0 +~ O ~ ~ }' N (0 L ~ ~ Q ~ ~ ~ Q1 ~ ~ N .L V N ~ ~ U ~ }~ u L ~ L O V) ~ to ~ (~ O }' O +~ 0 ' ~ (0 i L +~ 4A ~ L u O ~ v Q O •~ •L u ~ ~ N O (~ ~ }' u ~ f6 0 C f6 ~ ~ i Q ~ ~ ~ ~ ~ ~ ~ N ~ ~ o U ~ Q ° +~ ° U ~ ~ ~ ° ~ Q v ~ ~ • c~ L a~ ~ ~ 3 ~ o u ~ a ~ ~; U ~ Q U i a ~ ~ Q ~ ~ 4J a~ > o U o a ~. 'L +~ U • L ~ ~ L ~ ~ o a ~ ~ ~ 4A N ~ ~ ~ ~ c~ ~ ~ O 0 ~ ~ ~ ~ ~ Q ~ ~ c~ vVi O s M1. ~ ~ ~ ~ ~ ~ Q ~ Q ~ ~ ~ ~ 1 ~ c~ ~ v O 0 U ~ al O 4J ~' ~ 0 L N ~ ~ ~ O ~ 0 +~ 4J cn O L 0 0 ~ ~ ~ Q O C ~ Q O • ~ S ~ >` U ~ ~ U •~ L }+ O •L L L ~ •L L _ U DJ G ~ ~"~ > ~ ~ ~ ~..~ ~ }r Q L V U to ~ (n ~ ~ V) +~+ ~ ~ (~ Q~ O (~ ~ ~ (~ O ~ 1 ~ ~ ~ N ~ ~ (n ~ r2 ~ ~ ~ O S .L (/~ ~ ~ ~ 4J ~ ~ ~ ~ 0 4J ~ '~ C O N 0 U ~ N ~ ~ L to 41 ~ }' L Q ~ ~ a (~ 41 +~+ '~ a ~ 3 ~ o ~ ,~ a +~ ~ ~ o L ~, o Q N ~ U o +~ '> ~ ~ ° ~o ~ o ~ rl 0 ~ ~ ~ rl rl ~ ~ ~ ~ S rl ~ ~ N N N N ~ 0 Ll l0 ~ rl rl N ~ N X cv r~ r~ r~ .~ r~ m ~ m Q m Q m a~ ~ rri cri ~ ~ U a Q ~ r~ ~ ~ ~ ui ~ qA ~_ ~L O U t/') C v V N M N rl ~ U ~ ~ - ~ ~ ~ ~ ~ ~ _ U +, ~ ~ ~ v ~ 0 v ~ Q +~ ~ ~ ~ ~ v ~ " v ~ o~ ~ ~ N ~ ~ ~ ~ ~ ~ ~ ~ ~ L o s ~ 3 v - r~ ~ o v ~ L ~, v v1 }' ~ L 0 (6 ~ ~ > ~ ~ U ~ a'd L 0 ~ 4A L = t1A ~ v ~ ~ ~ C +~ O ~ ~ Q f6 L ~ ~_ • O ~ ~ O . ~ ~ ~ ~ L ~ ~ ~ L ~ ~ U _ ~ ~ ~ ~ 'N ~ ~ ~ U > ~ f6 ~ v L ~ U ~ v L C V ~ ~ L v . ~ }~ ~ ~ U . ~ = a..~ v ~ +~ ~ L ~ (n O v ~ ~ Q ~n ~ ~ ~ U ~ ~ +' f~ v ~ ~ ~ ~ in O v U ~ 0 ~ ~ v N ~ U 0 v >` ~ f6 v fa ~ v ~ ~ v o ~ v - v - ~ ~ ~ ~ v ~ ~ ~ U ~ v ~ L ~ L ~ ~ an p ~ ~ s s ~' *' ~ ~ v v ~ ~ ~ a v ~ ~ ~ O +~ ~ ~ O L s r~ v ~ ~ ~ 0 ~ ~ u ~ v O ~ U _ U L .~ ~ ~ S +~ v cn +.' ~ - Q U ~ t~ L ~..i ~ 0 0 ~ ~ ~ Q ~ L (~ C v s v v ~' ~ fa - ~ - ~ '~ ~ ~ ~ ~ v f6 0 ~ u ~ ~ ~ .~ +' ~ C 0 cn 0 L v ~ L V v ca ~ 0 ~ 0 _v ~ +~ v ~ ~ ~ ~ ~ v •, ~ ,V ~ O 'V ~ ~ ~ ~ Q S ~ Q N 0 ~ ~ v _ 0 ~C ~ ~ '~ +' ~ i ~ Q i v V ~ ~ p }' ~ v 3 ~ '~ ~ U ~ Q ~ to L ._ ~ + v ~ v1 O ~ L ~ O L v ~ ~ ~ ~ ~ S +~ > ~ ~ >~ ~ ~ s v - v ~ v v U ~ }' ~ 0 L ~ '~ v > Q ~ ~ ~ C f0 ~ O L ~ ~ ~ ~ i ~ Q ~= v ~ ~ ~ ~ v v CAA ~ Q 0 ~ ~ +~ v ~ S ~ ~ ~ ~ ~ f6 ~ ~ ,~ ~ ~ +~ ~ ~ U Q ~L ~ 0 0 U v ~ C ~ L p U ~ v 0 ~ U v s .O ~ V ~ a cn ~ v ~ ~ - L ~ ~ v ~ ~ ~ '~ - v ~ ~ ~ ~ L Q O ~ ~ _ ~ to ~_ Q L fa U ~ i ~ > _0 O v cn ~ L ~ +~ O ~ ~ O O p i p ~ L O v ~ s ~ ~ 0 ~ O ~ a ~ S ~ O O ~ ~ ~ ~ L ~ 0 U 0 4A ~ ~ U __ N ~ ~ ~ L ~ ~ ~ f6 ~ ~ +~ L 0 +~ cn 0 ~ L ~ ~ L = O U v u c~ >~ C ~ C ~ v ~ 0 p u g +~ v 0 ~ ~ ~ ~ ~ ~ ~ ~ w 3 ~ ~ ~ u ~ u ~ ~ u ~ ~ ~ ~ ~ ~ ~ ' ~ v V ~ ~ V ~ r~ ~ ~ +~ ~ s +~ ~ U O u v > r~ v .L u ~ v p ~ t +~ ._ ~ cn - ~ ~ 0 ~ ~ ~, s ~••~ ~ U ~ v 0 L v v > v s Q v L s +~ v s +~ v ~ s +~ ~ ~ v ~ ~ ~ U ~ v ~ v ~ .-. ~ ~ ~_ f6 ~_ ~ O v L O L ~ v ~ ~ ~ ~ v 0 v ~ • ~ • • . . L ~ ~ 00 to O V1 O v1 ~ ~ v fa ~ U ~ ~ U ~ ~ O U v ~ ~ ~ (n v > ~ N ~ ~ U ~ (~ ~ ~ ~ ~ v ~ v +, v O ~ C (n (n . ~ !n v ~ ~ v s v ~ •L ~ ~ o p o ~ o ~ o Q ~ v ~ v u ' v v ~ ~ o o a o o ~ L a o Q ~ Q ~ ~ ~ ~ o 00 ~ N +~ o V o a~ o ~ O Q a~ N a ~ s o v I.f1 O v 00 00 rl rl ~ rl ~ N ~ v i rl ~ ~ S ~ l0 N ~ rl ~ rl ~ rl L X Ln s ~ Ll1 Lf~ Lf~ 0 ~ Lf1 L Lf1 t/1 LP) U _ ~ l0 ~ l0 ~ f0 lD L Q l0 (!~ l0 fa 00 O v ~ qA ~_ •L O U t/') C V N M N rl ~ O ~ ~ ~ N ~ U 3 U M1• 0 f0 C ~ ~ f0 U ~ ~ • ~ , ~ N ~ C qp 0 C •~ ~ _ ~ ~ ~ ~ ~ +~ M1• ~ 0 = ~ •- ~ N C i ~ L N ~ 0 ~ ~ N v ~ ro ~ ~ ~ N ~ ~ ~ .V - ~ • ~ > N Q N r~ s ~ +' ~ ~ L ~ L ~ ~ 0 ~ Q f0 ~ ~ U ~ ~ ~ ~ +~ ~ •~ cn ~ O Q - ~ CL• U M1• L C ~ ~ 0 ~ ~ s c~ ~ r~ ~ '~ ~ > ~ ~ >. o ~ ~ ~ ~ ~ `" ~ ~ ~ ' . - ~ ~ = r~ z u OJ ~ N ~ N w U ~ •~ • ~ ~ r~ C +' o L •~ 0 Q O U ~ ~ N J L ~ Q~ Q~ ~ ~ ~ ~ a ~ `~ ~ • a z ~ '~ r~ lD w X o0 r~ U o0 ~7 ._ x w ~V C O U U O N D O O N N C n ~ o'S ~ ~ ~ V O ~ C ~ ~ 0 ~ ~ L ~ ~ ~ (n ~ ~ ~ O ~ ~ ~~ ~ fa Q) N ~ L.L ~ ~ ~ ~ ~ U ~ ~ _ ~ -a ~ ~ N ~N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ vi ~- oC ~ O ~ ~' c! 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N ~X LL N U .~ N C/) i O U m .~ C O rB L Q~ a--~ H L V) ~ a"r ~ .Q f~ i = V fa ~ Cn a--~ Q~ N ~- ~ W N 00 ~ ~ ~ O D ~ ~ ~ O = a ~ .v O ~ ~ ra O L U ~ c +~ a~ o ~ Q c C ~ ~ m '~ ~ D U ~ ~ ~ .~ ~ ~ ~ ~ ~ m ~ ~ ~' ~~ ~ ~ > o ~ o ~ ~ ~ ~ U ~ U ~ O .~ co O U a--+ O U O O N N N M n 00 ~ ~O I~ O n ~ ~ ~i ~i ~ ~ ~ ~ ~ ~ ~~ ~ O ^ ~ N ~ W N ,--i N ,--i ~ ~ Ll') Ll') ~ ~ L Ll') Ll') ~ ~ M M ,--I ,--I ~~ ~ ~ LL 4~ V C~ 4~ Z ~ ~ Q~ L a--~ Q~ ._ L O Q ~ ~ •V i (~ ~ ~ ~ ~ i ~ ~ O c U° ~ E ~ o ~' - c ~ c ,~, c~i~ cn ~ o Q +~ ~ ~ ~- ~ v' ~ ~ C ~ O C ~ ~ ~ C v L V O O O ~ can C ~1 C a C }, a1 •C ~U ~ ~ ~ m C a--' CA ~ ~ ~ ~ I •~ ~ ~ a~i ~ ~ m m ~ L ~ o ~ c./) ~ o ca N o0 ~ o I ^ o o~ o O a.=r N i N N ~ ~ ~ O O ~' L ,--i ~- N ,--i N E ,-i E N O ~~ N ra ~ ~ Q ~ j ~ Q ~ ~ Q ~ ~ n .~ n~ n~ Q U (n n z AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: General Government CM/DCM/ACM: George Campbell, City Manager ~T IR.TF,CT Receive a report, hold a discussion and give staff direction regarding the outcome of the 2007 State Legislative Program of the City of Denton during the 80th Texas Legislature, including future legislative issues and strategies. BACKGROUND: For the 80th Regular Session of the Texas Legislature, the City of Denton compiled its key legislative issues into the 2007 State Legislative Program. This Program was adopted by City Council Resolution R2006-036 on October 3, 2006. The Program consisted of issues anticipated to be considered by the Texas Legislature, primarily relate to state initiatives that impact city finances, development and land use, right-of ways, regional transportation, utility, and public sa ety issues. On January 3, 2007, a request for proposals was sent out to several qualified individuals and firms to assist us in the advancement of the City's 2007 State Legislative Program. Six proposals were received and Hil1Co Partners was selected for having the best fit for the City. In February 2007, a one year contract was negotiated with Hil1Co Partners for $78,000 per year for their services in monitoring, tracking, analyzing and reporting, legislative advocacy and representation, and interim activities and legislative agenda development. The contract does have an option to renew for a second year. Hil1Co was instrumental in helping Denton maintain a presence with the state legislature and key elected officials during the 80th Regular Session. According to the Texas Municipal League (TML), the 80th Legislature was a "Session Characterized by Havoc and Pandemonium, A Complete Breakdown was Narrowly Averted." The 2007 session featured two battles over the House Speaker's chair, numerous "personal privilege" speeches, alate-night walk-out by enough House members to break a quorum, and a near melt-down in the Senate over a contested roll call vote. But on the final day, lawmakers regrouped long enough to address unfinished business and wrap up the most contentious session in recent memory. This Session shattered all previous bill-filing records (see below chart). With a bill count 18 percent higher than 2005, hundreds of bills died simply because time ran out. The sponsors of those bills went looking for other bills to amend. The result was an amendment free-for-all during the final days, as bills thought to be dead sprang back to life as amendments at all hours of the day and night. This, of course, is dangerous because bills that we have worked hard on all session long to kill were resurrected and had to be tracked down again and again. ADA/EOE/ADEA www.cityofdenton.com (TDD 800-735-2989) 6/15/07 80th Legislature and Denton's Legislative Program Page 2 of 4 Year Total Bills Total Bills City-Related Bills City-Related Bills Introduced* Passed Introduced Passed 1987 4,343 1,204 420+ 175+ 1989 5,256 1,339 625+ 180+ 1991 4,684 970 840+ 180+ 1993 4,560 1,089 800+ 140+ 1995 5,147 1,101 800+ 140+ 1997 5,741 1,502 1,100+ 130+ 1999 5,908 1,638 1,230+ 130+ 2001 5,712 1,621 1,200+ 150+ 2003 5,754 1,403 1,200+ 110+ 2005 5,369 1,397 1,200+ 105+ 2007 6,374 1,495 1,200+ 120+ Includes bills and proposed Constitutional amendments; regular session only. SOURCE: Texas Municipal League (June 2007) ADA/EOE/ADEA www.cityofdenton.com (TDD 800-735-2989) 6/15/07 80th Legislature and Denton's Legislative Program Page 3 of 4 So How Did Denton Fare? The biggest victory for Denton and other Texas cities was the defeat of hundreds of bad bills that would have lowered or broadened the current cap on annual increases in property tax appraisals, imposed a property tax revenue cap, enacted costly unfunded mandates, or eroded municipal authority to conduct local affairs. We will benefit from the many good bills, including legislation that will expand purchasing/contracting authority, increase funding for local parks, and enact improvements in the "conflicts disclosure" procedures adopted by the legislature in 2005. Unfortunately, we will once again face new state fees on municipal court fines, restrictions on the use of red light cameras, new limitations on the use of eminent domain, and a new training mandate relating to emergency management. The limitations on eminent domain are embodied in H.B. 2006, which will undoubtedly make it much more expensive to obtain land for public purposes. As of the time of the writing of this document, the governor had still not signed this bill into law and many local governments, including Denton, have contacted the governor and asked him to veto this bill. The governor has until June 17 to sign bills, veto them, or let them become law without his signature. We were successful in opposing some revenue cap bills such as HJR 53, HB 3534 and CSSB- 163 8, and worked closely with TML and Hil1Co Partners in maximizing our efforts. We also coordinated the opposition to HB 1434 and SB 49, both were sales tax holiday for textbooks bills that could have cost approximately $1,620,000 in annual sales tax revenue loss for the City. Much work was done on transportation bills. Most notably, HB 2084 that supported the Tri-Party Agreement to exempt the locally authorized portion of the state sales tax cap that is dedicated to public transit. Unfortunately, even after much work we were not successful in getting this bill out of the House Calendars Committee. The wording from HB 2084 was successfully added to HB 2510 by Sen. Carona, however this amendment was taken off later in the House on a point of order. There were also several Comprehensive Development Agreements (CDA) moratorium bills that could have had a negative impact to SH 121 CDA. After much maneuvering by both the House and Senate, HB 1892 was passed and sent to the Governor's Office. We were successful in working with DCTA and Hil1Co Partners in having the Senate recall the bill back from the House to make revision to this bill that would protected SH 121 CDA. HB 1892 was eventually vetoed by the Governor as part of a deal struck with House and Senate members, and SB 792 was passed instead and sent to the Governor. Most North Texas projects, including SH 121, were exempted from any moratorium in this bill. Several bills were filed that would have negatively impacted our Red Light Camera (RLC) enforcement program. Unfortunately, early in the session cities became divided on the revenue sharing component of this issue proposed by Sen. Carona. Denton, Plano and Dallas went down to the wire opposing the sharing of any revenue from these programs with the State. Unfortunately, the following bills did pass and were sent to the Governor. • HB922 -Prohibit use of photographic enforcement for speed • HB 1052 -Posting of warning signs before photographic enforcement intersection • SB 1119 -Comprehensive RLC bill. This bill also includes SB 125 and the same provisions as HB922 and HB 1052. ADA/EOE/ADEA www.cityofdenton.com (TDD 800-735-2989) 6/15/07 80th Legislature and Denton's Legislative Program Page 4 of 4 We are still assessing the impact of these bills, but we know that we will have to begin sharing 50% of revenues from this program with the State, who in turn will use to fund certified trauma centers. We were successful in leading the opposition to HB 3779 by Rep. Bonnen that could have had an approximately $1,912,000 negative impact to our beneficial reuse (Dyno Products) operations. We testified against this bill and contacted other cities that also entered opposition to this bill. This bill was not able to get out of committee, which is interesting since it was the committee chair's bill. We were also engaged on several other issues including: land use bills affecting our authority to annex or over our ETJ, Billboards, Eminent Domain, Drainage Fee, Parks Funding, Public Safety and Personnel issues. Attached is some more information on bills that were passed and sent to the Governor's Office. Some of these bills will become effective as soon as they are signed; others (unless vetoed) will become effective on Monday, August 27. The specific effective date for each bill can be found on the Internet at Texas Legislature Online. RECOMMENDATION Continue to work with TML and Hil1Co Partners in the interim on addressing legislative issues of importance to the City of Denton. PRIOR ACTION/REVIEW (Council, Boards, Commission): None FISCAL INFORMATION: The City has a one year contract with Hil1Co Partners for $78,000/year for their services in monitoring, tracking, analyzing and reporting, legislative advocacy and representation, and interim activities and legislative agenda development. We have the option to renew for a second year. Respectfully submitted: John Cabrales Jr. Public Information/Intergovernmental Relations Officer Attachment: Hil1Co Partners Final Legislative Report, June 7, 2007 ADA/EOE/ADEA www.cityofdenton.com (TDD 800-735-2989) H I L L ~ ~ ~ 1 ~ ~ ~ ~ Final Legislative Report (Note: Governor has until June 17 to veto) June 7, 2007 The 80th session of the Texas Legislature adjourned sine die on Memorial Day, May 28tH The Senate wrapped up their business around B:OOp.m. But the House didn't finish until the midnight deadline. As the session drew to a close, it became evident that this legislature would be remembered for its reactionary efforts rather than its proactive legislation. HPV - In early February, Governor Rick Perry issued an executive order directing the Health and Human Services Commission to adopt rules requiring all girls age 11 and 12 to receive the Human Papillomavirus (HPV) vaccine prior to entering sixth grade. The legislature responded by passing HB 1098 which overturned the Governor's executive order and prohibits the state from paying for the vaccines if it is mandated by the commission. In mid-May, the Governor announced that he would let the bill become law without his signature. He issued a press release saying, "In early February, I initiated a national debate by ordering the widespread use of the HPV vaccine, which protects women from the deadly human papillomavirus that serves as the most common cause of cervical cancer. Since then, the legislature has countered that order with the passage of HB 1098. During that timeframe, a debate which affects real lives has been hij acked by politics and posturing... Rather than allowing this issue to beheld captive one more day by legislative politics and the inevitable posturing that will ensue during a veto override debate, I have decided to let it become law without my signature." TYC - In early March reports of abuse at Texas Youth Commission facilities were made public. A report released by the Texas Rangers accused two administrators at a TYC facility in Pyote of sexual abuse of minors under their care, leading to the resignation of the TYC Commissioners. The governor appointed Jay Kimbrough as TYC Special Master (he was later elevated to Conservator of the Texas Youth Commission) charged with leading an investigation, and the Senate and House created the Joint Select Committee on the Operation and Management of the Texas Youth Commission investigate allegations of gross mismanagement at the TYC, sexual misconduct by agency employees or former employees, and failure of the agency to properly investigate or resolve those issues. Ultimately, all of the TYC board members resigned, and the legislature passed SB 103 which establishes an office of inspector general in the TYC to investigate crimes committed by TYC employees and makes other improvements to the operations of TYC. Lt. Governor David Dewhurst said, "Since the day my Senate colleagues and I first learned about the abuse of inmates in the Texas Youth Commission, our first priority was to ensure the safety of the young people in custody and to clean out the bad actors. Now we can begin to rebuild the TYC and restore public trust in the agency by implementing tough, new accountability measures that are included in this legislation." FREW - Inmid-April, the state announced an agreement to settle a 13-year old lawsuit (Frew v. Hawkins) against the state in which plaintiffs argued that the state has not sufficiently funded Medicaid programs. Under the settlement, the Medicaid reimbursement rate for physicians will increase by 25% and the reimbursement rate for dentists will increase by 50%. The legislature had to appropriate $707 million to settle the lawsuit causing budget conferees to renegotiate key aspects of the appropriations bill. A record number of bills and constitutional amendments were~led this session - 6374. 1495 measures were passed. That compares to 1,370 in 2005,1,403 in 2003, 1, 619 in 2001 and 1, 911 in 1999. As the legislature headed into its final week, most of the major issues were still unresolved. By the midnight deadline, almost all of the issues were resolved through reconsiderations and suspensions. Budget -The conference committee report on HB 1, the appropriations bill, was adopted by the House and Senate late on Sunday night sending the record $152.5 billion budget to the governor, who is rumored to be preparing his line-item veto to carve it down. HB 2, which appropriates $4.2 billion in 2008 and $3.8 billion in 2009 to offset school property tax reductions, also passed. Cancer Research - HJR 90, a constitutional amendment establishing a fund providing up to $300 million per year for cancer research and prevention (up to $3 billion over the next 10 years), was adopted. The enabling legislation, HB 14 establishes the Cancer Prevention and Research Institute of Texas. The Senate sponsor, Jane Nelson (R- Lewisville) said, "This is a major victory for the cancer community, but we have just begun to fight. We are going to take this momentum and keep it going as we talk to the people of this state, most of whom have in some way been impacted by this terrible disease, about what it would mean for Texas to lead the way in our search for the cure. This is by far my proudest moment in the Legislature, and I am so grateful to have played apart in this team effort." Children's Health Insurance Program -The legislature passed HB 109, which will add more than 100,000 children to the rolls of the Children's Health Insurance Program (CHIP). Eligible families, those that make less than 200% of the federal poverty level, will only have to enroll children once a year, rather the twice that is in current law. It creates an electronic monitoring system to check the eligibility of families that are close to the upper limit, to ensure that eligible families remain covered. If a family exceeds the income limit, they will receive two weeks notice before they lose coverage. It also removes the 90-day waiting period before CHIP coverage begins after enrollment. Environment -The conference committee report on SB 12, the Texas Emission Reduction Plan and Low-Income Vehicle Repair and Assistance Program bill, was adopted by the House in the final hours of the session. SB 3, the omnibus water resources conservation bill, also passed on the last day. Public Education - SB 1031, which would replace the Texas Assessment of Knowledge and Skills (YAKS) tests with end-of course exams for high school graduation, was passed. Senator Florence Shapiro (R-Plano) authored the bill. She said, "This ensures that no Texas student will take a course in name only, because we will assess the rigorous content we expect students to learn. End-of course exams will allow amore in-depth study of a particular topic, as well as provide a more timely assessment of a student's grasp of that subject." House sponsor, Representative Rob Eisler (R-The Woodlands) said, "It is important to give students multiple pathways to graduation. This bill holds students to high standards while not putting off of the focus on one test." Also passed was SB 1846 which authorizes the Teacher Retirement System to issue a thirteenth check for the retired teachers of the state equal to their normal monthly payment up to $2,500. Vicki Truitt (R-Southlake), the House sponsor said, "I can't tell you how happy I am that we were able to get this bill through both houses of the Legislature and send it to the Governor for his approval. The retired teachers have had no benefit increase in more than six years, while their cost of living has increased significantly." SB 4, which would have brought additional regulations to charter schools, failed. Higher Education - HB 3 828, which would establish incentive funding for institutions of higher education (the Governor's higher education proposal), did not pass; however, the appropriations bill set aside $100 million for the Texas Higher Education Coordinating Board to use for incentive funding. SB 101, which would have cut back on the use of the top 10% rule for automatic admission of students in the top 10% of their graduating class to the state university of their choice, also failed. The conference committee report was voted down in the House by a vote of 64 to 75. Representative Roberto Alonzo (D-Dallas), who led the opposition said, "I am thrilled with the defeat of SB 1010 because our current law as written will continue to work and make higher education accessible and affordable to many young Texans who choose to go to college, particularly our Hispanics, African Americans, and other minorities. The top 10% rule is doing an outstanding job of recruiting and keeping more minorities and students from many of our rural communities in our colleges and universities in Texas." The legislature did pass HB 3900, the Texas Tomorrow Fund II, which is a new pre-paid tuition program. Senate sponsor, Florence Shapiro (R-Plano) said, "The Texas Tomorrow Fund is back. Texas families can once again lock in tomorrow's tuition at today's prices. This new version of the Tomorrow Fund will help parents better plan for their children's future higher education needs, and give them more certainty about the cost of college e ucatlon." Electric Utility - SB 482, which would have made changes to the retail electric market, died after going to conference committee twice and being the subject of several points-of order and a motion to overrule the chair. SB 483, which would have made changes to the wholesale electric market, died in conference committees. Homeland Security -The conference committee report on HB 13, the major homeland security bill, died in the House on a point-of order. Several of the provisions were added to another homeland security bill, SB 1 1, and were adopted. The House sponsor of SB 1 1, Frank Corte (R-San Antonio) said, "After negotiating with Senators and Representatives onboth sides of the aisle, we crafted a bill which will increase the state's ability to detect, deter and respond to man-made and natural disasters. SB 11 addresses statewide mutual aid, creates the border security council to advise the governor on border issues, provides for training through the School Safety Center to avert a Virginia Tech incident in Texas, and addresses the issues of human trafficking and criminal street gangs. Among other provisions, the bill also provides for emergency alert system training to apply lessons recently learned from the tornado in Eagle Pass. I am proud of the efforts of the members of this body who worked diligently to put the safety and security of all Texans before personal politics." Medicaid Reform -The legislature passed SB 10, which reforms the state's Medicaid system. Senator Jane Nelson (R-Lewisville), the bill's author, said, "This legislation lays the foundation for a new approach to health care for the poor, the fragile and the uninsured. It expands our efforts to assist with premiums for the uninsured, discourages inappropriate visits to the emergency room, and focuses heavily on preventive health, which will help contain our acute care costs over the long term and, more importantly, help Texans maintain good health." Upon final passage of the bill, Lt. Governor Dewhurst said, "I want to congratulate Chairwoman Jane Nelson (R- Lewisville) for her hard work and leadership on this very important legislation that will help many Texans who don't have any health insurance obtain health insurance, encourage Texans to lead healthier lives and tailor benefits so folks get the coverage they need instead of aone-size-fits-all plan. This is landmark legislation that will help millions of Texans improve their quality of life and live longer, while allowing the state to make our Medicaid system more efficient." Parks and Wildlife Funding -The legislature adopted HB 12, which creates a funding mechanism for Texas parks by removing the cap on the sporting goods tax. Religious Expression in Schools -After failing in the House, HB 3678 was resurrected on a motion to reconsider. It is the Religious Viewpoints Anti-discrimination Act that gives schools and students guidelines regarding violations of religious freedoms in public schools. The bill's author, Representative Charlie Howard (R-Sugar Land) said, "An overwhelming vote in both the House and Senate sent a strong message that our country was founded on freedom of expression. This bill is a victory for freedom and non-discrimination for every child in Texas. This legislation is consistent with the Constitution and U.S. Supreme Court rulings which provide schools with protection from litigation, assuring our children of their ability to express their religious viewpoints." Tax - HB 3928, the franchise tax reform bill that increases the small business exemption and makes other technical corrections to the new gross margins tax, was passed. Telecommunications Infrastructure Fund - HB 735, which abolishes the Telecommunications Infrastructure Fund tax, passed. The Telecommunications Infrastructure Fund was created in 1995 as a to-year project to extend high-speed Internet infrastructure to schools, libraries, and hospitals. It was a 1.25% tax on telephone bills. Since the purpose of the fund expired in 2005, the legislature has continued the tax and used the money for other purposes. Transportation -Governor Rick Perry vetoed HB 1892, which would institute a two-year moratorium on private toll contracts and put other restrictions on comprehensive development agreements. After negotiations with Senate and House leaders, the legislature passed a similar bill SB 792, which gives local toll road authorities discretion on developing local infrastructure and places atwo-year moratorium on toll road construction using private equity. Representative Wayne Smith (R-Baytown), author of HB 1892 and the House sponsor of SB 792, said, "I am glad that my House and Senate colleagues and I were able to work together so that important decisions on infrastructure development are still in the hands of local interests. This bill ensures a moratorium so that we can more closely study how to address these issues taking into account local concerns. GOVERNOR -Governor Rick Perry likened the session to The Good, The Bad, and The Ugly. He said, "We can say as a result of this session that the border will be more secure, healthcare will be better funded, college will be more accessible and school property tax rates will continue to decrease. However, like the old Clint Eastwood movie, this was a session of the Good, The Bad and the Ugly. Much work was left undone, and I hope legislators will fix their eyes on the unfinished business of the people instead of the political squabbles when they return to Austin. Perry's press release said, "In February, Gov. Perry proposed a budget that established a new higher standard for fiscal responsibility and truth-in-budgeting, while meeting key priorities for Texas. The result would be slowed government growth, $15 billion in property tax relief, and an end to accounting gimmicks with the use of a one-time $5.4 billion payment. Additionally, a $4.3 billion balance in the Economic Stabilization Fund would be left untouched. Yesterday, Lawmakers effectively passed a $153 billion budget financing the record school property tax cut of 2006, creating a cancer research fund, funding a health opportunity pool that will help more Texans buy private health insurance, largely increasing college financial aid, creating a new incentive program to meet higher education goals, and dedicating $100 million to border security. The legislature's budget included many of the governor's priorities presented in his State of the State Address. Though there were some issues left unfinished such as property tax relief, true budget and spending reform, and appraisal relief, Governor Perry commended legislators for their service and looked optimistically toward the future. The governor concluded saying, "My quarrel is not with where the dollars flow, but the lack of transparency, accountability and budgetary honesty involved in how they are allocated. That being said, important investments have been made that legislators can proudly proclaim. Lawmakers came here with high hopes and have laid firm tracks that will continue Texas' stride as a prosperous state." The governor's scorecard listed: The Good: • "SB 10 and a rider in HB 1 give the Health and Human Services Commission the authority to establish a premium assistance program to provide insurance to uninsured Texans. The state is eligible to receive up to $1 billion annually in federal funds that can be used to help individuals purchase private insurance. Preliminary indications estimate funds will be available to cover at least 200,000 adults annually. • Texas passed one of the most aggressive, comprehensive Medicaid reforms in the country. SB 10 includes provisions for healthy lifestyle incentives for Medicaid recipients, hospital financing reforms, establishment of a premium assistance program for the uninsured, customized benefit packages, and co-payments for emergency room use for non-emergency conditions. The bill will help Texas control Medicaid spending while improving outcomes for clients and moving more Texans to private insurance coverage. • The legislature agreed with the governor's proposal to restore Medicaid provider rates. That restoration became an essential part of the negotiations that resulted in a settlement to the Frew v. Hawkins lawsuit. • The Texas Water Development Board identified 19 reservoir sites in the 2007 State Water Plan, which SB 3 designates to keep local government from interfering with their use as reservoirs. • HB 1066 passed, creating the Texas Health Services Authority, anon-profit, public-private collaborative that will receive private sector donations and federal funds to develop health information technology policies and foster regional collaboration. • HB 921 passed, directing state agencies to develop data standards and a system for sharing client data between agencies that provide health/social services to improve the quality and efficiency of services provided. • SB 10, the Medicaid reform bill, includes a new pilot program to promote the adoption of electronic medical records through the Texas Medicaid program. • The legislature passed HB 14 and HJR 90, establishing the Cancer Prevention and Research Institute of Texas. • SB 530 requires students in grades 6, 7, and 8 to take four to six semesters of physical education and students in grades 3-12 to undergo fitness evaluations to raise health awareness. Additionally the budget includes a rider in the Texas Education Agency budget to provide $20 million for grant programs to assist school districts with in-school physical health programs; $18 million to the University of Texas Southwestern for obesity, diabetes and metabolism research; $2 million to the Texas Agriculture Extension Service for obesity research; and $800,000 to the Governor's Advisory Council on Physical Fitness. • For the biennium, Texas will spend nearly $343 million on teacher incentive programs. Of that, $195 million will reward teachers through the Governor's Educator Excellence Awards and Awards for Student Achievement programs, which apply to campuses with high populations of economically disadvantaged students. Another $148 million rewards teachers in all campuses beginning in the 2nd year of the biennium in order to finance an additional teacher pay raise. • The legislature appropriated $20 million to the Texas Workforce Commission for the purpose of increasing childcare reimbursement rates for childcare providers that participate in a school readiness integration project. • $5 million was appropriated to fund the Amachi program, which is a statewide program that provides one-on-one mentors to the children of incarcerated, or paroled, men and women through Big Brothers Big Sisters. • The legislature authorized more than $100 million for grant programs to support high school reform, dropout prevention and college readiness. • For the first time, a portion of funding for higher education institutions will be based on achievement rather than just enrollment. This is a fundamental and appropriate shift in the way taxpayers' funds are appropriated to universities and colleges that will bring about greater accountability. $100 million for incentive funding for the general academic institutions will help the state meet workforce needs by targeting an increased number of graduates, especially in critical fields, and improving the quality of education. • An increase of $145.5 million will help more students afford college. This includes an increase of $96.2 million for Texas Grants, $39.4 million for B-on- Time, $5 million for Texas College Work Study and $5 million for Texas Educational Opportunity Grant. Together, this will help 16,000 more students afford college. • The budget appropriates $14.7 million for the Professional Nursing Shortage Reduction Program to recruit and retain nursing faculty and appropriates $4 million in proceeds from the tobacco lawsuit settlement to support innovative nursing education programs. • Thirty-six special items totaling $123 million are appropriated in line-items in a manner that can be evaluated using gubernatorial veto authority. • The legislature required that a database of state expenditures be established and posted on the Internet in an electronically searchable format, making it easier for the public to track state spending. • HB 735 ends the Telecommunications Infrastructure Fund assessment, saving ratepayers $421 million. • HB 43 8 limits the amount that a homestead's appraised value can increase to no more than 10% in a single year, regardless of when the property was last appraised. • HB 3496 increases taxpayer rights and extends taxpayer deadlines. • HB 3024 requires the appraisal district to establish by clear and convincing evidence the property's value in taxpayer protest hearings. • HB 1634 authorizes the film incentives program to encourage film production in Texas. HB 1 provides $22 million for film incentives. • HB 3560 transfers procurement functions to the comptroller. • $110 million was added to expand existing successful surge operations coordinated by the Governor's Office of Homeland Security. • HB 8 makes repeated sexual abuse of a child or children during at least a thirty day period an offense; sets a twenty five year minimum sentence without the offender having prior convictions; and allows young children witnesses to reference abuse within a 30 day period, rather than a single date for a child to remember. • The budget provides nearly $240 million for rehabilitation and parole beds for offenders. • The legislature appropriated $15.8 million to help state and local governments coordinate when disaster strikes. • HB 1 provides for an $80 million increase in funding or a total of $338 for the biennium for the Texas Emissions Reduction Plan. HB 1 also appropriates an additional $92 million for the Low Income Vehicle Repair Assistance program from the Clean Air Account to repair, retrofit and replace older, higher emission ve is es. • SB 247, the Sudan Divestment bill, requires the state Employees Retirement System and the Teacher Retirement System to divest in companies doing business m Su an. • On May 12, 2007, Texans voted to extend property tax relief to senior citizens and disabled individuals whose property tax amounts are frozen. • HB 1 includes $75 million in new general revenue which along with previous balances and interest results in an estimated $180 million for the Emerging Technology Fund. • HB 1 appropriates an estimated $200 million, including unexpended balances and anticipated interest earnings for the Enterprise Fund. • HB 1 appropriates $51 million to the Skills Development Fund, an increase of $11 million to provide customized j ob training to an additional 8,000 workers. • SB 792 permits Texas' innovative toll road program to continue forward in a cooperative fashion with TxDOT and local toll authorities using a variety of tools to build the roads our growing state needs. Members passed atwo-year moratorium on privately financed roads but exempted every road that would conceivably be built using private financing during the next two years. • HB 160 makes railroad relocation projects that reduce engine idling and air pollution eligible to apply for TERP grants. • HB 2702 provides a monthly health insurance subsidy of $150 through age 18 to parents who adopt foster children who do not qualify for Medicaid. • The legislature retained an existing rider in the Department of Family and Protective Services budget of $1.2 million for faith-based foster family recruitment and training. • HB 15 contains a rider that requires Texas Southern University to establish and implement a rehabilitation plan with an accountability system." The Bad: • "The legislature superseded Executive Order RP65 bypassing HB 1098. As a result, only 25% of the applicable population will likely be vaccinated against the most widespread sexually transmitted disease, as opposed to 95% if the HPV vaccine was man ate . • The amount of financial aid for higher education appropriated is less than half the total requested by the governor, and no progress was made in consolidating the numerous financial aid programs and increasing student accountability. • Legislative leaders did not engage in any meaningful debate about the need for more open and transparent state budget. • HB 2560 would have required disclosure of school district books on the Internet where parents and taxpayers could view school expenditures. The bill died in the Senate. • The governor proposed replacing the use of $1.2 billion in Fund 006 used to finance non-transportation state agency operations and using those funds to maintain and expand the state highway system. The legislature did not adopt this funding strategy. • The current 10% appraisal cap was maintained. Several bills that would have reduced the appraisal cap to an amount less than 10% failed to pass. • Several House and Senate bills, filed at the recommendations of the Task Force on Appraisal Reform, did not receive legislative consideration. The bills would have provided taxpayer protections and improved the fairness of the appraisal system. • The governor's proposed revisions to the spending limit, which would have limited spending to population growth and inflation as calculated during the previous six years, were never debated on the floor of either house. • SB 163 8, which included new property in the calculation of the effective tax rate, failed to pass the Senate. • The Texas Windstorm Insurance Association is not adequately funded; therefore, we must determine what actions can be taken during the interim. • The governor recommended a $20 million appropriation pending the selection of a Texas site for the FutureGen proj ect. The funds were to be used to implement the near-zero emission coal fired power plant project. HB 1 did not include any such appropriation. • The legislature had an opportunity to provide an additional $2.5 billion in property tax relief. HB 2785 would have reduced the property tax rate by additional 6%, beyond the property tax relief provided in 2006. • Despite the governor's proposal to appropriate $100 million to capitalize the Railroad Relocation and Improvement Fund, a record budget surplus, and voters approving the Railroad Relocation and Improvement Fund in November of 2005, the legislature failed to appropriate money to the fund to move freight rail lines out of our dense urban areas. • HB 3973, clarifying the state's authority to enter into a lottery operation agreement, was filed but never made it out of committee. The legislature missed an unprecedented opportunity to create anywhere from $14 billion to $20 billion in endowments, benefiting the state in perpetuity. • Despite the governor's request that the Legislative Audit Committee meet to determine if Texas Southern University had suffered gross fiscal mismanagement, it has yet to meet. The governor worked with the legislature to craft SB 2039, an option to placing TSU into conservatorship. The compromise language proposed in SB 2039 would have allowed the governor an additional tool to deal with any agency, including universities, suffering from a condition of financial or administrative exigency that created a continuing or pervasive instability in operations an management." The Ugly: • "The legislature not only overturned Executive Order RP 65, but it included a rider in the budget to restrict the use of state funds to purchase or administer a mandatory HPV vaccine program. • The governor's higher education performance incentive funding proposal received less funding than special-item earmarks, the higher education pork proposals that were never debated but added to the budget, in many cases, in the final week of t e session. • Despite repeated efforts from the Governor's Office and others with interest in accountability, the legislature refused to engage in any meaningful debate about the need for more accessible higher education budgets. HB 3795, which repeals the statutory requirement for higher education lump-sum funding, died in subcommittee without a hearing. • The governor's proposed budget included more than $2 billion for truth-in- budgeting; the legislature's budget accomplishes a mere $554 million intruth-in- budgeting. Additionally, budgetary shell games continue, including legislative budget charts that mask more than $2 billion in education spending as property tax relief. This phony number inflates the cost of keeping our property tax promise, and made more difficult the passage of additional property tax relief. • The legislature also passed a funds consolidation bill, HB 3107, which allows the comptroller to sweep various dedicated accounts into the general revenue account for one day in order to certify the budget. This budgetary gimmick flies in the face of honest budgeting. • Despite yearly public outcries for appraisal reform, the legislature again refused to have a meaningful, open debate on this issue. Bills that would have instituted an appraisal cap or revenue cap were left to die in House and Senate committees. • While rehabilitation ofnon-violent offenders is important, so too are the mental health needs oflaw-abiding Texans. Funding for substance abuse at the Department of State Health Services decreased by $20.9 million. In effect, the budget dedicates $205 million to providing treatment to 150,000 prisoners, while cutting treatment funding for 22 million law-abiding citizens." The governor will have until mid-June to veto any bills sitting on his desk. SENATE -The Senate worked until after midnight three nights in the last week accomplishing their business in a lengthy but routine manner. Before adjourning, Senators elected Senator John Carona (R-Dallas) as President Pro Tempore of the Texas Senate. He will serve as Governor of Texas at times when both the Governor and Lt. Governor are out of the state. About the session, Lt. Governor David Dewhurst said, "I want to congratulate members of the Texas Senate and House for their five months of hard work on behalf of the people of this great state. This has been a productive session. We've delivered the largest tax cut in Texas history, increased funding for schools, colleges and universities, enhanced border and homeland security, cracked down on child predators, and held down spending to less than the rate of population growth plus inflation. Key legislation passed by the Texas Senate and the 80th Legislature this year includes: • $152.5 billion budget that reduces local school property taxes by $14.2 billion in Fiscal Years 2008-2009, and sets aside $7.5 billion to guarantee continued property tax relief in 2010-2011. • Texas' version of Jessica's Law to strengthen laws against child predators, including mandatory minimum 25-years to life sentences on a first sexually violent offense and allows prosecutors the option of seeking the death penalty on a second offense. • Comprehensive water legislation to ensure Texas has an adequate new water supply for the future. • Over $200 million for additional law enforcement officers and improved technology to enhance border and homeland security capabilities." Lt. Governor Dewhurst thanked legislators for passing legislation that comprised his Texas Children First initiative. In addition to Jessica's Law, other measures passed including legislation to: enhance penalties against anyone who solicits a minor on the Internet (SB 6); require all public schools to have at least one automated external defibrillator on campus (SB 7); institute mandatory, random steroid testing for high school athletes (SB 8); and require background checks for anyone who comes in contact with children on a public school campus (SB 9). He said, "I believe by protecting our children, we protect the future of our great state and I can't thank the members enough for all they have done this session to make sure our children have the opportunity to grow into safe, healthy and productive adults." Lt. Governor Dewhurst also praised the Legislature for taking action to improve air quality, expand access to children's health insurance, and deliver local school property tax relief to the elderly and disabled. Additional achievements include funding for teacher pay raises and incentives to improve performance and decrease dropouts as well as more than $1.3 billion in new funding for universities and community colleges. HOUSE -The House ended the session in the same way it started - with a speaker's race controversy. While rumors of a move to ask Speaker Tom Craddick (R-Midland) to step down were floating around the last two weeks of the session, the move finally came on Friday night before the Memorial Day deadline for the session to end when Representative Fred Hill (R-Richardson) made the motion to vacate the chair. Craddick responded that he would not recognize that motion, that it is the speaker's prerogative to recognize or not recognize any motion, and that the speaker's decision may not be appealed. He added that the office of the speaker is a constitutional office and therefore, the speaker could only be removed for cause and only by a 2/3 vote. He followed up by entering his formal ruling in the j ournal saying, "The office of Speaker of the Texas House of Representatives is the only constitutionally-mandated officer of the Texas House by virtue of Article 3, Section 9 of the Texas Constitution... The Texas Constitution speaks to the exclusive grounds for the removal of officeholders. Article 3, Section 11 is specific to the legislature, and authorizes each house of the legislature to expel members for offenses upon atwo-thirds vote... Independent of the foregoing, the House Rules do not have a provision for members to remove a Speaker during mid- session..." Later that night, the parliamentarian and assistant parliamentarian resigned their positions and were replaced by former Representatives Terry Keel (R-Austin) and Ron Wilson (D-Houston). Alexis DeLee, issued a statement on the rulings made by Speaker Tom Craddick, "The Speaker's position is that he will see to it that the House conducts the important business of the state. The other side wants to go outside the House Rules to carry out a speaker's race during the session, and we are not going to play that game." Some of the fireworks continued through Saturday and Sunday while Craddick had Speaker Pro Tempore Sylvester Turner (D-Houston) in the chair. Sunday night, Representative Pat Haggerty (R-El Paso) was recognized for a personal privilege speech and preceded to call the roll of House members asking them if they want the speaker replaced. He didn't get very far before he was interrupted by House members who obj ected to their names being called. He then asked his colleagues to take the keys to their voting machines and join him in leaving the chamber. The walk-out broke quorum and required the House to adjourn. Speaker Craddick issued another statement via Alexis DeLee. "Once again, some members chose to divert the House away from important matters and instead tried to drag the members into a Speaker's race while we are in session. Speaker Craddick made a promise to the members of the House that he would make sure their bills would be heard so their constituents concerns would be met. This evening a number of bills were put into j eopardy -bills that would protect our water, fund our parks and historical sites, lower electric rates, enhance air quality, and require steroid testing in our public schools. It is his intention to take up and consider these and other pieces of legislation before the session ends tomorrow at midnight." On Sunday, House members reconvened and passed most of the remaining bills although it took them until midnight to finish their business. Even though the House adjourned sine die with Tom Craddick still in the speaker's chair, there is expected to be a spirited speaker's race in the interim as several challengers to Speaker Craddick have announced their intention to run for speaker including Republican Representatives Fred Hill, Jim Keffer, Brian McCall, Jim Pitts, and Delwin Jones and Democrat Senfronia Thompson. BIOTECHNOLOGY HB 709 by Robert Puente (D-San Antonio) and Jane Nelson (R-Lewisville) requires the executive commissioner of the Health and Human Services Commission to collect information and prepare and update as necessary a brochure based on nationally accepted, peer reviewed, scientific research information regarding stem cells contained in the umbilical cord blood after delivery of an infant. The brochure must be available on the department's website and be made available to physicians and pregnant women upon request. Physicians are required to provide the brochure to their pregnant patients and have to permit the mother to arrange for umbilical cord blood storage or onation upon request. BUDGET HB 1 by Warren Chisum (R-Pampa) and Steve Ogden (R-Bryan) is the general appropriations bill. It appropriates $152.5 billion from all fund sources for the 2008-09 biennium. (That amount excludes $14.2 billion in appropriations for property tax relief.) The appropriated amount represents a $10 billion or 7% increase over the 2006-07 biennial level. General Revenue funds are $80.1 billion, an increase of $8.8 billion (12.3%) over the 2006-07 spending level. Specifics include: Health and Human Services - HB 1 includes $39.8 billion in all funds and $15.8 billion in General Revenue Funds for the Medicaid program. It represents an increase of $2.3 billion in general revenue funds for Medicaid services to address caseload increases, fund acute care cost growth, fund a full biennium of Medicare Giveback (clawback) payments, reduce community care waiting lists, rebase hospital rates, increase staffing at state schools, and fund rate restorations and increases. Also included is $1.8 billion in all funds ($706.7 million in general revenue funds) appropriated in HB 15 to fund settlement of the Frew v. Hawkins lawsuit and $248.6 million for nursing facility rate increases. It includes $2.1 billion in all funds ($637.8 million in general revenue) for the Children's Health Insurance Program. It represents an increase of $213.2 million in general revenue funds to provide two years of pre- and post-natal services and dental premiums, address caseload increases, fund cost growth, and fund rate restorations and increases. It includes an increase of $89.5 million to change CHIP eligibility standards, contingent upon the passage of HB 109. HB 1 provides an increase of $592.3 million in general revenue at the Department of Family and Protective Services to replace other funds from the Economic Stabilization Fund for foster care payments, adoption subsidy payments, and child protective services reform. It includes an increase of $150.5 million in general revenue at DFPS to annualize child protective services and adult protective services reforms. It provides an increase of $82 million in general revenue to increase the availability of mental health crisis services. Public Education - HB 1 includes $24.7 billion in all funds for the foundation school program. (That does not include $14.2 billion necessary to fund the cost of the tax relief provisions in HB 1). The appropriated amount will provide for $1.6 billion in state costs for equalized local enrichment tax effort (a $ l . l billion increase from the 2006-07 biennial level), and $1.6 billion in facilities funding. It provides $342.8 million in general revenue for teacher incentive programs and $280 million for educator salary increases. Higher Education - HB 1 provides debt service for tuition revenue bond increases of $313 million in general revenue to fully fund new authorizations adopted in 2006. Funding for the Higher Education Fund is also increased by $175 million. Student financial aid is increased by $145.5 million. Enrollment growth is funded at the general academic and health-related institutions resulting in a $49.2 million increase in general revenue. Formula funding for all higher education institutions is increased by $261.4 million. Another 449 million in general revenue is included to fund the Texas Tech El Paso Medical School and Texas A&M Pharmacy School in Kingsville. An increase of $100 million in general revenue was added and other items combined to provide for a Higher Education Performance Incentive Initiative (the governor's higher education initiative). Criminal Justice - HB 1 appropriates $4.6 billion in all funds for the incarceration and treatment of adult felons (an increase of $369.4 million in general revenue funds) to fund correctional population increases, increased funding for rehabilitation programs, and increased operating costs. It provides an increase of $108.1 million in all funds for border security operations including funding for local law enforcement surge operations, Joint Operation and Intelligence Centers, a Border Security Operation Center, and additional Department of Public Safety troopers and additional aviation support. Transportation - HB 1 provides $16.7 billion in all funds for transportation planning and design, acquisition ofright-of way, construction, and maintenance and operation of the state's transportation system. The amount represents a $1 billion increase in all funds, including an increase of $0.3 billion in federal funds and an increase of $0.7 billion in other funds over the 2006-07 biennium, primarily due to increased Texas Mobility Fund and State Highway Fund Revenue Bond proceeds. Retirement Benefits -The Teacher Retirement System and Optional Retirement Program state contribution rates are both increased from 6% to 6.58% which results in an all funds increase of $635.7 million and $47.2 million over the 2006-07, respectively. Contributions for retirement for state employees will increase by $87.3 million in all funds and reflects a state contribution rate of 6.7% contingent on the passage of SB 1847 or similar legislation. In the event that SB 1847 does not pass, the appropriations would be reduced by $26.4 million in all funds. Employee Pay Raise -Contingent on sufficient increased revenue, HB 1 recommendations include $262.2 million in general revenue and $419.2 million in all funds for an across-the-board state employee pay raise of 2% with a $50 per month minimum in fiscal year 2008, and an additional 2% with a $50 per month minimum in fiscal year 2009. These amounts also include the cost of a separate pay raise for law enforcement personnel. General Obligation Bonds - HB 1 has $30.3 million in debt service on $263.5 million of currently authorized Proposition 8 Bonds (2001). In addition, it has $56.7 million in debt service on $717.3 million in general obligation bond proceeds for 2008- 09, contingent on the passage of SJR 65 and SB 2033 and authorizes $1 billion in new general obligation bond proceeds and subsequent approval by Texas voters of the bond proposition. HB 2 by Warren Chisum (R-Pampa) and Steve Ogden (R-Bryan) makes appropriations of $4,231,466,000 for the fiscal year ending August 31, 2008 and $3,846,492 for the fiscal year ending August 31, 2009 to the Texas Education Agency to offset local school property tax reductions. HB 15 by Warren Chisum (R-Pampa) and Steve Ogden (R-Bryan) is the supplemental appropriations bill. It makes appropriations to: 1. Austin Community College - $3,678,942 for correcting the institution's underreporting of its state-funded group health insurance enrollment for fiscal years 2006 and 2007. 2. South Plains College - $1,424,764 for correcting the institution's underreporting of its state-funded group health insurance enrollment for fiscal years 2006 and 2007. 3. Texas Department of Criminal Justice - $27 million for providing salaries and wages, hazardous duty and longevity pay, overtime pay, contractual rate adjustments, utilities, and fuel. 4. Texas Department of Criminal Justice - $12,940,619 to provide for correctional managed health care. 5. Texas Medical Board - $1,222,827 to repay the Governor's Emergency and Deficiency Grant awarded in fiscal year 2006 and provide for agency operating expenses for licensing and enforcement; $600,248 for agency operating expenses for licensing and enforcement; and authorizing the board to employ six additional employees. 6. Texas Department of Licensing and Regulation - $463,202 to pay the unanticipated costs of relocating the functions and operations and obligations of the former Cosmetology Commission and the former Board of Barber Examiners. 7. Texas Building and Procurement Commission - $2,847,069 for making utility payments. 8. Texas Southern University - $13,645,120 to provide deferred maintenance, paying outstanding expenses, making emergency maintenance repairs, paying contract deficits, paying audit and legal costs, providing funding for summer school, and providing funding for the TSU/RIDS Charter School (contingent on the passage of SB 2039). 9. Texas Southern University - $12.5 million for each fiscal year for the Texas Southern University Academic Development Initiative (contingent on the passage of SB 2039.) 10. Texas Forest Service - $44,730,767 for reimbursement of costs related to wildfire. 11. University of Houston - $45,000 for salary, office, and travel expenses of the Texas Forensic Science Commission. 12. Adjutant General's Department - $1,681,615 to pay salaries and wages and to provide maintenance and operations. 13. Restoration of Reductions Related to Air Travel - $2,595 for the Structural Pest Control Board; $33,370 to School for the Blind and Visually Impaired; $139,207 from School for the Deaf; and $3,383 to the Eleventh Court of Appeals in Eastland. 14. Supreme Court - $50,747 to provide grants to appellate courts for additional court staff to handle multi-district litigation cases. 15. Health and Human Services Commission - $4.5 million Texas Tech University Health Sciences Center for federal funds match. 16. Health and Human Services Commission -transfer of funds for CHIP services. 17. Health and Human Services Commission - to increase staffing at the commission. 18. Health and Human Services Commission - $110 million to carry out the responsibilities ofthe agency. 19. Health and Human Services Commission - $1,779.9 million for the Frew v. Hawkins lawsuit to provide a 25% increase in physician and other professional reimbursement rates and 50% increase in dental reimbursement rates for services to children enrolled in the medical assistance program. 20. Health and Human Services Commission - $1,073.2 million in federal funds for Frew v. Hawkins settlement. 21. Department of Family and Protective Services - $3,717,114 in state and federal funds for child protective services reforms. 22. Department of Aging and Disability Services - $27,236,354 in state and federal funds to restore community care provider rates to 2003 levels. 23. Department of Aging and Disability Services - $18 million in general revenue and $27.27 million in federal frund for Home Health Provider Rates. 24. Department of State Health Services - $11 million for purchasing antiviral drugs for use in the event of an influenza pandemic. 25. Comptroller of Public Accounts - $4.1 million to support the comptroller's tax administration duties and statewide fiscal responsibilities. 26. General Land Office and Veterans' Land Board - $2 million to remove and dispose of the Zeus jack rig, an off shore oil platform abandoned in the Freeport Channel. 27. Secretary of State - $5 million to reimburse counties for expenses incurred in connection with the May 12, 2007 constitutional amendment election. 28. Texas Commission on Environmental Quality - $2.8 million to support efforts to extinguish the fire in or near the city of Helotes on property owned by H.L. Zumwalt Construction, Inc., that poses a potential threat to Edwards Aquifer groundwater. 29. Texas Youth Commission - $20 million to provide for the agency's operating expenses and video surveillance needs. 30. Data Center Services - $22,165,319 to several agencies for data center services; and $50,351,368 to Department of Information Resources for data center services. HB 3107 by Carl Isett (R-Lubbock) and Steve Ogden (R-Bryan) abolishes all dedicated funds enacted during the 80th Legislative session on August 27, 2007 and re-creates them as accounts within the general revenue fund. It does not apply to transportation reinvestment, cancer prevention and research, nursing home quality assurance fee, state highway funds, revenue collected by the Texas Parks and Wildlife Department, Texas Department of Insurance funds, rural trauma funds, premium payment assistance account, Texas Health Opportunity Pool, Sexual Assault Program, fire prevention and public safety accounts, federal funds, trust funds, bond funds, or constitutional funds. SB 470 by Kim Brimer (R-Fort Worth) and Jim Keffer (R-Eastland) allows the comptroller to prescribe a uniform format for and a uniform method of reporting the financial information included in a state agency's annual financial report and requires state agencies to use the uniform format prescribed by the comptroller. SB 1615 by Kip Averitt (R-Waco) and Carl Isett (R-Lubbock) requires state agencies to report an uncollected and delinquent obligation that meets the referral guidelines established by the attorney general to the attorney general for further collection efforts on or before the 90th day after the date the obligation becomes past due or delinquent. If the attorney general determines it to be economical and in the best interest of the state, the attorney general is authorized to provide legal services for collection of the obligation; authorize the state agency to employ one or more persons to collect the obligation; or contract on behalf of the state agency with one or more persons to collect the obligation. The comptroller is authorized to contract with a person for collecting obligations that do not meet the referral guidelines adopted for collection by the attorney general. The person collecting the obligation could retain no more than 30% of the full amount of the obligation. The comptroller is also authorized to contract with one or more persons to collect delinquent obligations that have been referred to the attorney general that the attorney general has returned to the comptroller after exhausting all reasonable collection efforts (subj ect to the approval of the attorney general). SB 1719 by Steve Ogden (R-Bryan) and Warren Chisum (R-Pampa) makes $8,416,797 in appropriations to pay miscellaneous claims and judgments against the state. SB 2031 by Steve Ogden (R-Bryan) and Warren Chisum (R-Pampa) prohibits the attorney general from entering into a settlement of a claim or action against the state without the consent or approval of the legislature if the settlement requires the state to pay total monetary damages in an amount that exceeds $25 million or commits the state to a course of action that in reasonable probability will entail a continuing increased expenditure of state funds over subsequent state fiscal biennia. It does not apply to a refund of a tax, fee, or any related penalty or interest. SJR 65 by Tommy Williams (R-The Woodlands) and Warren Chisum (R-Pampa) proposes a constitutional amendment to authorize the issuance of up to $1 billion in general obligation bonds for maintenance, improvement, repair, and construction projects and for the purchase of equipment authorized by the legislature administered by the Texas Building and Procurement Commission, the Parks and Wildlife Department, the Adjutant General's department, the Department of State Health Services, the Department of Aging and Disability Services, The Texas School for the Blind and Visually Impaired, the Texas Youth Commission, the Texas Historical Commission, the Texas Department of Criminal Justice, the Texas School for the Deaf, and the Department of Public Safety. ECONOMIC DEVELOPMENT HB 374 by Joe Pickett (D-El Paso) and Judith Zaffirini (D-Laredo) requires state agencies and other state governmental entities to allow a production company to use any state building or grounds under the agency's control to produce a film, national broadcast, episodic television series, or commercial that is approved by the Music, Film, Television, and Multimedia Office. The Office can only approve a proposal if: the state agency approves; the proposal will not significantly interfere with the conduct of state business; the production company provides insurance; and the proposal is to produce a film or broadcast with a total production cost of $250,000 or more or a commercial with a total production cost of $100,000 or more. HB 1188 by Geanie Morrison (R-Victoria) and Florence Shapiro (R-Plano) makes changes to the Texas Emerging Technology Fund including: • Allowing additional investment vehicles including equity, debt instruments, and grants; • Changing the term "grant" to "award" and allows the governor to make awards in the form of loans, charge and receive reasonable interest for the loans, take an equity position in the form of stock or other security in consideration of an award, and sell or otherwise trade or exchange the security for the benefit of the fund; • Allowing funding for activities that have the potential to result in a breakthrough in the area of clean energy. • Providing funding for administrative costs and for the Regional Centers of Innovation and Commercialization; and • Changing the allocation formula to 50% for incentives for private or nonprofit entities to collaborate with public or private institutions of higher education on emerging technology projects with a demonstrated economic benefit to the state; 16.67% (rather than 25%) to be used to match funding from research sponsors other than the state, including federal research sponsors; and 33.33% (rather than 25%) to be used to acquire new or enhance existing research superiority at public institutions of higher education. HB 1470 by Rob Eisler (R-The Woodlands) and Kel Seliger (R-Amarillo) extends the Texas Economic Development Act from December 31, 2007 to December 31, 201 1. HB 1634 by Dawnna Dukes (D-Austin) and Bob Deuell (R-Greenville) changes the name of the Film Industry Incentive Program to the Moving Image Industry Incentive Program and changes qualifications for grants to $1 million in in-state spending (rather than $500,000) and to $100,000 in in-state spending for a commercial (rather than $50,000). It requires at least 70% of the production crew, actors and extras to be Texas residents and at least 80% of the project to be filmed in Texas. It prohibits incentives for "adult only" content productions and allows an application to be denied if the content is inappropriate or portrays Texas or Texans in a negative fashion. HB 2514 by Ruth Jones McClendon (D-San Antonio) and Royce West (D-Dallas) authorizes a municipality with a population of more than one million to designate a defined area in the municipality as an arts and entertainment district to develop a public and private collaboration that plays a vital role in the cultural life and development of the community in the district. HB 2542 by Lois Kolkhorst (R-Brenham) and Craig Estes (R-Wichita Falls) is the sunset bill for the Office of Rural Community Affairs. It continues the agency until September 1, 2013. HB 3446 by Patrick Rose (D-Dripping Springs) and Kevin Eltife (R-Tyler) authorizes the Governor's Office of Economic Development to establish the Genuine Texas Program to develop and expand markets for Texas manufactured products. HB 3694 by Joe Deshotel (D-Beaumont) and Kyle Janek (R-Houston) makes several technical corrections and updates to statutes relating to the enterprise zone program. It raises the number of enterprise projects that can be designated during a biennium from 85 to 105 and allows any designations remaining at the end of a biennium to be carried forward to the next biennium. It authorizes the Texas Economic Development Bank to lower the designation level of a proposed proj ect if there are fewer designations available than applications received or to further the economic interests of the state. It allows the comptroller to monitor qualified business or enterprise project commitments and requires the comptroller to submit a report to TEDB stating the actual amount of capital investment made and the actual number of jobs created as a result of a project's designation after the completion of an enterprise proj ect'sclose-out. It makes enterprise projects eligible for a refund for purchases of all taxable items purchased for use at a qualified business site related to an enterprise proj ect or activity. SB 1089 by Florence Shapiro (R-Plano) and Fred Hill (R-Richardson) authorizes economic development corporations to spend their tax revenue for the development, improvement, expansion, or maintenance of facilities relating to the operation of commuter rail, light rail, or motor buses. SB 1128 by Glenn Hegar, Jr. (R-Katy) and Robby Cook (D-Eagle Lake) changes the name of the Rural Foundation to the Texas Rural Foundation. It changes the number of board members from five to an odd number of members between nine and 14 appointed by the executive committee of the Office of Rural Community Affairs. SB 1237 by Carlos Uresti (D-San Antonio) and Jose Menendez (D-San Antonio) authorizes defense base development authorities to establish and operate an inland port and related port facilities to engage in world trade. SB 1264 by Kim Brimer (R-Fort Worth) and Vicki Truitt (R-Southlake) authorizes a taxing unit that levies taxes on real property in a reinvestment zone to make a loan to the board of directors of the zone for deposit in the tax increment fund for the zone if the taxing unit determines that the loan is beneficial to, and serves a public purpose of the taxing unit. SB 1424 by Kim Brimer (R-Fort Worth) and Todd Smith (R-Euless) repeals the minimum municipality population requirements for the use of the Other Events trust fund. It allows a local organizing committee, endorsing municipality, or endorsing county to request that the comptroller determine the economic impact of a qualifying event six months before the event takes place (rather than three months). SB 1440 by Glenn Hegar (R-Katy) and Bryan Hughes (R-Mineola) authorizes the Office of Rural Community Affairs to assist volunteer fire departments and emergency services districts in rural areas. SB 1509 by Eddie Lucio, Jr. (D-Brownsville) and Lois Kolkhorst (R-Brenham) authorizes the asset management division of the General Land Office to sell real property to an economic development corporation. SB 1523 by Jeff Wentworth (R-San Antonio) and Dawnna Dukes (D-Austin) establishes the Sporting Event Trust Fund to help cities with at least 500,000 residents and counties with a population of at least 800,000 recruit a National Collegiate Athletic Association regional tournament, Senior Olympic activity, or major sporting event. SB 1724 by Steve Ogden (R-Bryan) and Rick Noriega (D-San Antonio) abolishes the Texas Military Facilities Commission and transfers its functions to the Adjutant General. It creates the real property advisory committee to advise the adjutant general on the facility master plan, the future year defense plan, the long range construction plan, the selection of architecture and engineering firms, requests for bonding authority for state military facilities, the disposal or sale of department property, surface leases of department property, natural resources management plans, and environmental studies and agreements. SB 1956 by Leticia Van de Putte (D-San Antonio) and Frank Corte (R-San Antonio) transfers the Defense Economic Adjustment Assistance Grant Program from the Texas Department of Commerce (no longer in existence) to the Texas Military Preparedness Commission and institutes evaluation criteria. ENERGY/ELECTRIC HB 624 by Phil King (R-Weatherford) and Troy Fraser (R-Marble Falls) requires an electric utility or transmission and distribution utility to report to and obtain approval of the Public Utility Commission before closing any transaction in which the electric utility or transmission and distribution utility will be merged or consolidated with another electric utility or transmission and distribution utility; at least 50% of the stock of the electric utility or transmission and distribution utility will be transferred or sold; or a controlling interest or operational control of the electric utility or transmission and distribution utility will be transferred. It requires the commission to approve the transaction if it is in the public interest within 180 days of the report. HB 1090 by David Swinford (R-Dumas) and Mike Jackson (R-Pasadena) requires the Texas Department of Agriculture to develop and administer an agricultural biomass and landfill diversion incentive program to make grants to farmers, loggers, and diverters who provide qualified agricultural biomass, forest wood waste, urban wood waste, or storm-generated biomass debris to facilities that use biomass to generate electrical energy in order to provide an incentive for the construction of facilities for that purpose. HB 1386 by Phil King (R-Weatherford) and Troy Fraser (R-Marble Falls) requires owners of new nuclear electric generation units to pay decommissioning costs. The Public Utility Commission is required to adopt rules to define the company's specific duties as funds administrator and requirements regarding prudent management and investment of nuclear decommissioning trust funds. HB 2713 by Dennis Bonnen (R-Angleton) and Kip Averitt (R-Waco) creates the Interim Special Committee on Electric Energy Generation Capacity and Environmental Impact to conduct an interim study on the state's demand for electric generation capacity for the next 50 years and the infrastructure and technology available for meeting that demand; and the environmental effects of existing electric generating facilities, including the effects on global warming or climate change. SB 484 by Troy Fraser (R-Marble Falls) and Phil King (R-Weatherford) authorizes the Electric Utility Restructuring Oversight Committee to study and seek policies to ensure that fuel resources available to the state are used in a balanced and efficient manner and consider the reliability, economic viability and the environmental impact of new fuels on generation technologies. They are required to meet at least twice annually and to encourage cooperation and coordination with the Public Utility Commission; Texas Commission on Environmental Quality; Railroad Commission of Texas; Electric Reliability Council of Texas; and office of the comptroller. The committee is required to consider and discuss policies and strategies to ensure that fuel resources available to the state are used in a balanced and efficient manner while taking into consideration the reliability, economic viability, and environmental impact of fuels and technologies. SB 495 by Leticia Van de Putte (D-San Antonio) and Joe Straus, III (R-San Antonio) authorizes mtuiicipal electric utilities to enter into hedging contracts for coal and nuclear fuel to protect against loss due to price fluctuations. SB 831 by Rodney Ellis (D-Houston) and Joe Straus, III (R-San Antonio) authorizes energy savings performance contracts to be financed up to 20 years (rather than 15 years) from the final date of installation. It clarifies that performance contracts can include increased revenue capture resulting from more accurate water, electricity, and other utility metering equipment and requires the equipment's accuracy to be reviewed periodically by an independent professional engineer with experience in energy calculation and review. SB 1430 by Leticia Van de Putte (D-San Antonio) and Robert Puente (D-San Antonio) specifies that funding of aloes-income customer assistance program is a lawful operation and maintenance expense of a municipally owned electric or gas utility for a municipality with a population of more than one million. ENVIRONMENT SB 3 by Kip Averitt (R-Waco) and Robert Puente (D-San Antonio) is an omnibus water resources conservation bill. The provisions in the bill on environmental flows are the same as HB 3. All provisions of HB 3 are in SB 3 except the sections relating to the Edwards Aquifer. In addition to the environmental flows provisions, key issues in SB 3 include Water Conservation Awareness Program -The Texas Water Development Board is required to develop and implement a statewide water conservation awareness program to educate residents of the state about water conservation. Regional Water Plans - It requires the TWDB to review water conservation plans and annual reports submitted by water utilities. It authorizes an expedited amendment process for regional water plans and it directs the board to perform compliance reviews of water conservation plans and annual reports. Climate Change Study - It requires the TWDB incoordination with the Far West Texas Regional Water Planning Group to conduct a study on the impact of climate change on surface water supplies from the Rio Grande and to submit a report to the legislature no later than December 3 1, 2008 on the impact. Sustainable Water Supply Research Center -The TWDB is authorized to establish and operate the Sustainable Water Supply Research Center at the University of Texas at Arlington to conduct, sponsor, or direct multidisciplinary research directed toward promoting water conservation through the development of a sustainable water supply; and mitigating the effect of diminishing water supplies on the economy and people of the state. Water Conservation by Home-Rule Municipalities - It authorizes home-rule municipalities to adopt and enforce ordinances requiring water conservation in the municipality and by customers of the municipality's water and sewer utility in the extraterritorial jurisdiction of the municipality. Water Conservation Plan -The TCEQ must require a retail public utility that provides potable water service to 3,300 or more connections to submit to the executive administrator of the board a water conservation plan based on specific targets and goals developed by the retail public utility and using appropriate best management practices or other water conservation strategies. Consolidated Billing and Collection - It authorizes a retail public utility providing water service to contract with a retail public utility providing sewer service to bill and collect the sewer service provider's fees and payments as part of a consolidated process with the billing and collection of the water service provider's fees and payments. Unique Reservoir Designation - It specifies that a site is considered to be a site having unique value for the construction of a reservoir if that site is recommended for designation in the 2007 State Water plan adopted by the TWDB. No state agency or political subdivision of the state may obtain a fee title or an easement that would significantly prevent the construction of a reservoir on any of the designated sites. Region C Study Commission - It creates the Study Commission on Region C Water Supply and requires the TWDB to provide staff support and funding for professional services and for commission-related duties. The commission will review water supply alternatives available to Region C including existing and proposed reservoirs and groundwater supplies. Legislative Joint Interim Committee - It creates a joint interim oversight committee to review financing of water infrastructure projects and funding for water programs administered by state agencies. HB 3 by Robert Puente (D-San Antonio) and Kip Averitt (R-Waco) is an omnibus water resources management bill dealing with environmental flows and the Edwards Aquifer Authority. Key provisions include: Emergency Authority to Set Aside Water - It clarifies that the Texas Commission on Environmental Quality may use state water that is set aside by the agency to meet the needs for freshwater inflows and maybe made temporarily available for other essential beneficial uses if the agency finds that an emergency exists that cannot practically be resolved in another way. It clarifies that the commission may suspend a permit condition or make water available temporarily without notice. Texas Water Trust - It specifies that a fee is not required for a water right that is deposited into the Texas Water Trust. Purposes for Which Water May beAppropriated - It amends the purposes for which water maybe appropriated to clarify that water maybe appropriated to the extent it has not been set aside by the agency to meet downstream instream flow needs for freshwater inflow. It clarifies that all permit conditions relating to freshwater inflows to affected bays and estuaries and instream flow needs must be subject to temporary suspension if necessary for water to be applied to essential beneficial uses during emergencies. Enforcement - It requires TCEQ to enforce water rights that are converted to environmental purposes in the same manner as that of other water rights. Legislative Directive - It directs the TCEQ to establish an environmental set- asidebelow which water should not be available for appropriation in those basins in which water is available for appropriation; and to utilize a variety of market approaches for filling the gap in those basins in which unappropriated water that will be set aside for instream flow and freshwater inflow protection is not sufficient to fully satisfy the environmental flow standards. Environmental Flows Advisory Group - It establishes an Environmental Flows Advisory Group to conduct public hearings and study public policy implications for balancing the demands on the water resources of the state resulting from a growing population with the requirements of the riverine, bay, and estuary systems including granting permits for instream flows. The advisory group is required to define the geographical extent of each river basin and bay system to develop environmental flow regime recommendations and environmental flow standards. Environmental Flows Science Advisory Committee - It establishes the Environmental Flows Science Advisory Committee to serve as an objective scientific body to advise and make recommendations to the advisory group on issues relating to the science of environmental flow protection; and develop recommendations to help overall direction, coordination and consistency relating to environmental flow methodologies and programs and the work of the basin and bay expert science teams. Water Rights for Instream Flows - It prohibits the TCEQ from issuing a new permit for instream flows dedicated to environmental needs or bay and estuary inflows. It allows the agency to approve an application to amend an existing permit or certificate of adjudication to change the use or to add a use for instream flows dedicated to environmental needs or bay and estuary inflows. Civil Penalty - It authorizes the state to seek civil penalties for taking state water without a permit regardless of whether a Watermaster has been appointed for the area where the unlawful use is alleged to have occurred. Parks and Wildlife Department -The Parks and Wildlife Department has the rights of a water right holder of a water right that is help in the Texas Water Trust, including the right to file suit; and the right to prevent any person from appropriating water in violation of the set-aside. Administrative Penalty -TCEQ is authorized to assess an administrative penalty for a violation of a water right regardless of whether a Watermaster has been appointed for the affected water area. Water Rights Permit Applications - It adds as a condition under which the TCEQ may grant an application for a water rights permit that the agency consider any applicable environmental flow standards. Any permit for a new appropriation of water or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted must include a provision for the commission to adjust the conditions included in the permit or amended water right to provide for the protection of environmental flows. TCEQ is prohibited from increasing the amount of the pass- through orrelease requirement for the protection of instream flows of freshwater inflows by more than 12.5%. Environmental Flow Standards and Set-Asides -TCEQ is required to: adopt appropriate environmental flow standards for each river basin and bay system in the state that are adequate to support a sound ecological environment, to the maximum extent reasonable considering other public interests and other relevant factors; establish an amount of unappropriated water, if available, to be set aside to satisfy the environmental flow standards to the maximum extend reasonable when considering human water needs; and establish procedures for implementing an adjustment of the conditions included in a permit or an amended water right. Watermaster Advisory Committees -The executive director of TCEQ must appoint a Watermaster Advisory Committee for each river basin or segment. Water Advisory Committees must make recommendations to the executive director on water rights, review and comment on the annual budget of the Watermaster. Environmental Flows Funding -The Texas Water Development Board is authorized to use money in the agency's research and planning fund. Collection of Instream Flow Data -The deadline for the priority instream flows study is extended from December 31, 2010 to December 31, 2016. Edwards Aquifer Authority -The Edwards Aquifer Authority is authorized to finance and design recharge facilities or contract for those purposes. The authority is required to give notice of its intent to own, finance, design, construct, operate or maintain recharge facilities. In limiting withdrawals of water from the aquifer, the authority is required to recognize the extent of the hydro-geologic connection and interaction between surface water and groundwater. It changes the pumping cap in the Edwards Aquifer from 400,000 acre feet ofwater/year to 572,000 acre feet ofwater/year. Withdrawal from the San Antonio Pool is prohibited unless the level of the aquifer is higher than 675 feet above sea level; flow at Comal Springs is greater than 350 cfs; and the flow at San Marcos Springs is greater than 200 cfs. HB 4 by Robert Puente (D- San Antonio) and Kip Averitt (R-Waco) establishes that it is the policy of the state to encourage voluntary water and land stewardship to benefit the water in the state. Key provisions include: Water Conservation Advisory Council - It establishes the Water Conservation Advisory Council to: monitor trends in water conservation implementation; monitor new technologies for water conservation; monitor the effectiveness of the statewide water conservation public awareness program; develop and implement a state water management resource library; develop and implement a public recognition program for water conservation; monitor the implementation of water conservation strategies; and monitor target and goal guidelines for water conservation. Membership of the board will consist of 33 members from named stakeholder groups to serve staggered terms of six years and elect one of their members to be the presiding officer. The Council is required to conduct a study to evaluate the desirability of establishing a certified water conservation training facilities and programs that provide assistance to retail public utilities in developing water conservation plans; and give preference to certified water conservation training facilities in making loans or grants for water conservation training and education activities. Retail Public Utilities - It requires retail public utilities providing water service to 3,300 or more connections to submit water conservation plans based on specific targets and goals using appropriate best management practices for water conservation. It also requires such entities to submit annual reports, and requires the Texas Water Development Board to establish rules to administer the review of the water conservation plans and for enforcement for failure to submit an annual report. Statewide Water Conservation Public Awareness Program - It requires the Texas Water Development Board to develop and implement a Statewide Water Conservation Public Awareness Program for water conservation education. Reclaimed System Technologies - It requires the Texas Higher Education Coordinating Board to encourage colleges and universities to develop curriculum and instruction for on-site reclaimed system technologies, including rainwater harvesting, condensate collection, or cooling tower blow down. It requires state agencies to incorporate reclaimed system technologies into the design and construction of new state buildings. It amends state standards for harvested rainwater to require, if connected to a public water supply system, cross-connections and prohibits the use of harvested rainwater except for nonpotable indoor purposes. Water Conservation Ordinances - It allows ahome-rule municipality to adopt and enforce ordinances requiring water conservation in the municipality and by customers of the municipality's municipally owned water and sewer utility in the extraterritorial jurisdiction of the municipality. Irrigation Systems - It requires the Texas Commission on Environmental Quality to adopt rules and enforce standards for the design, installation, and operation of irrigation systems; water conservation; and the duties and responsibilities oflicensed irrigators. It prohibits the TCEQ from adopting standards for irrigation that include water conservation, irrigation system design and installation, and compliance with municipal codes, and requires the agency to consult with the Council in setting water irrigation standards. Recycled Wastewater - It exempts from sales tax recycled wastewater used in oil and gas activities. HB 147 by Larry Phillips (R-Sherman) and Kel Seliger (R-Amarillo) authorizes Texas Commission on Environmental Quality to allow a municipally owned utility, a water supply or sewer service corporation, or a district, to defer payment of all or part of an administrative penalty on the condition that the entity complies with all provisions for corrective action in a commission order to address the violation. Any penalty deferred will become due if the commission determines that the entity is not incompliance with a provision for corrective action. HB 536 by Vicki Truitt (R-Southlake) and Jeff Wentworth (R-San Antonio) removes the requirement for one municipality to obtain written consent of another municipality when annexing an area in a water or sewer district that is wholly or partly in the overlapping extraterritorial jurisdiction of two or more municipalities if the area contains less than 100 acres; the annexing municipality, before June 1, 2005, annexed more than 50% of the territory of the water or sewer district, as the district existed on the date of its creation; and the entire water or sewer district would be contained in the annexing municipality after completion of the annexation. HB 713 by Bill Callegari (R-Katy) and Kel Seliger (R-Amarillo) allows fresh water supply districts to enter into a contract with an authorized water district or a water supply corporation to acquire, through the issuance of debt or other means and convey to the authorized water district or water supply corporation all or part of a water supply, treatment, or distribution system, a sanitary sewage collection or treatment system or works or improvements necessary for drainage of land in the district. HB 1251 by Dennis Bonnen (R-Angleton) and Jeff Wentworth (R-San Antonio) allows public agencies, counties, and municipalities to enforce its grant of a franchise or contract for solid waste collection and transportation services within its territory. It authorizes the governing body of a municipality to provide that a franchise it grants or a contract it enters into for solid waste collection and transportation services supersedes inside of the municipality's boundaries any other franchise granted or contract entered into. It prohibits a political subdivision from restricting the right of an entity to contract with a licensed waste hauler for the collection and removal of domestic septage or of grease trap waste, grit trap waste, lint trap waste, or sand trap waste. HB 1254 by Dennis Bonnen (R-Angleton) and Kip Averitt (R-Waco) authorizes the Texas Commission on Environmental Quality to adjust fees they deem necessary to encourage electronic reporting and the use of the commission's electronic document receiving system. HB 1314 by Kevin Bailey (D-Houston) and Mike Jackson (R-Pasadena) authorizes counties with a population of 3.3 million or more to prohibit a person from installing an on-site sewage disposal system or installing a water well, if the lot or parcel of land on which the on-site sewage disposal system or water well is to be installed has access to service from a federally funded water or sewer utility system. HB 1391 by Sylvester Turner (D-Houston) and John Whitmire (D-Houston) requires the regulatory authority for a public utility to adopt standards for maintaining sufficient water pressure for service to fire hydrants adequate to protect public safety in residential areas in a municipality with a population of 1,000,000 or more. It requires the Water Commission to assess residential areas in a municipality with a population of 1,000,000 or more to ensure that the regulatory authority for the area has adopted the required standards and all public utilities serving the residential area are complying with the required standards. HB 1457 by Jim McReynolds (D-Lufkin) and Robert Nichols (R-Nacogdoches) deletes from the list of acceptable ways to dispose of poultry carcasses "cooking for swine food." It allows the storage of poultry carcasses on the site of a poultry facility for more than 72 hours if the carcasses are refrigerated or frozen. HB 1493 by Dennis Bonnen (R-Angleton) and Kyle Janek (R-Houston) creates the Severe Storm Research and Planning Center to work with the University of Houston, Rice University, Texas A&M University, and others to provide sophisticated modeling that provide more accurate warnings when storms approach the Texas coasts. HB 1526 by Wayne Smith (R-Baytown) and Kel Seliger (R-Amarillo) requires the Texas Commission on Environmental Quality to establish a program that allows the owner or operator of a facility to use voluntarily as a supplemental detection method any leak detection technology that has been incorporated and adopted by the Environmental Protection Agency into a program for detecting leaks or emissions of air contaminants. The program must provide regulatory incentives to encourage voluntary use of the supplemental leak detection technology at a regulated facility that is capable of detecting leaks or emissions that may not be detected by methods or technology approvable under the commission's regulatory program for leak detection and repair in effect on the date the commission adopts the program. HB 1656 by Robert Puente (D-San Antonio) and Kip Averitt (R-Waco) requires persons who inspect an irrigation system for a municipality or water district to be licensed. It prohibits a person from licensure if the person engages in or has a financial or advisory interest in an entity that services or repairs irrigation systems. A water district is authorized to adopt and enforce rules that require an installer of an irrigation system to hold a license and to obtain a permit before installing a system within the boundaries of the district. HB 1871 by Helen Giddings (D-De Soto) and Troy Fraser (R-Marble Falls) requires persons who are in the business or recycling, shredding, or destroying plastic bulk merchandise containers before purchasing five or more plastic bulk merchandise containers to obtain proof of ownership for the containers. HB 1956 by Kelly Hancock (R-North Richland Hills) and Kim Brimer (R-Fort Worth) authorizes the Texas Commission on Environmental Quality to order an owner or operator of an underground storage tank that fails to maintain acceptable evidence of financial responsibility to place the tank out of service, and requires an insurance company or other entity that provides insurance coverage or another form of financial assurance to an owner or operator of an underground storage tank to notify TCEQ if the insurance coverage or other financial assurance is canceled or not renewed. HB 1967 by David Farabee (D-Wichita Falls) and Kip Averitt (R-Waco) allows common carrier status for anyone who owns, operates, or managed a pipeline offered to the public for hire to carry carbon gasification feedstock or products, if the person agrees to accept Texas Railroad Commission regulation. It adds pipelines carrying carbon gasification feedstock or products to the list of pipelines under the jurisdiction of the Texas Railroad Commission. HB 2018 by Betty Brown (R-Athens) and Bob Deuell (R-Greenville) removes the 20,000 population limitation in the current law on municipalities for municipal settings designations and would allow cities of any size to utilize municipal settings designations for remediation of groundwater under a property. HB 2285 by Warren Chisum (R-Pampa) and Kel Seliger (R-Amarillo) exempts the applicant for a license or registration related to the disposal of low-level radioactive materials from paying an application fee to the Texas Department of Health. It prohibits the Texas Department of Health from assessing a fee on a local law enforcement agency for the licensing and registration of an X-ray machine that is used to screen packages or other objects the agency suspects may contain an explosive or other item that would pose a danger to the public health and safety. HB 2417 by David Swinford (R-Dumas) and Kip Averitt (R-Waco) transfers responsibility for and the management of the Fuel Ethanol and Biodiesel Production Incentive Program from the Texas Economic Development and Tourism office to the Texas Department of Agriculture. HB 2482 by Robby Cook (D-Eagle Lake) and Craig Estes (R-Wichita Falls) provides for an exception to the prohibition against the Texas Commission on Environmental Quality conditioning permits or the approval of permits for on-site sewage disposal systems using aerobic treatment for single-family residences based on whether they have a maintenance contract for an on-site sewage disposal facility. It allows the homeowner the option of maintaining his/her own on-site sewage disposal facility, except where prohibited by local order or resolution. HB 2541 by David Leibowitz (D-San Antonio) and Carlos Uresti (D-San Antonio) requires Texas Commission on Environmental Quality to adopt rules regarding the size, content, and fire safety for recycling facilities. It authorizes TCEQ to use funds in the Solid Waste Disposal Account to respond to or remediate fires or other emergency situations at solid waste, recycling facilities, or composting facilities, and allows the agency to recover costs from a responsible party. HB 2608 by Bryan Hughes (R-Mineola) and Kevin Eltife (R-Tyler) requires the Texas Higher Education Coordinating Board to expend money from legislative appropriations to support applied research on a clean coal project or electricity generation using lignite coal deposits or integrated gasification combined cycle technology. HB 2714 by Dennis Bonnen (R-Angleton) and Kirk Watson (D-Austin) is the Manufacturer Responsibility and Consumer Convenience Computer Equipment Collection and Recovery Act. Manufacturers - It requires manufacturers of computer equipment to adopt and implement a recovery plan for used computer equipment and affix a permanent, readily visible label to the computer equipment with the manufacturer's brand. The recovery plan must enable a consumer to recycle computer equipment without paying a separate fee at the time of recycling and must include provisions for the manufacturer's collection from a consumer of any computer equipment that has reached the end of its useful life and is labeled with the manufacturer's brand and the recycling or reuse of the computer equipment collected. Recovery Plan -The recovery plan must be reasonably convenient and available to and designed to meet the collection needs of consumers. It may include returning computer equipment by mail, a physical collection site; or a collection event. The recovery plan must include information for the consumer on how and where to return the computer equipment and be provided to the commission, via the Internet, and maybe included in the packaging of the product. Reporting -Manufacturers are required to annually submit to TCEQ a documented report that includes the weight of equipment collected, recycled and reused. Retailers - It prohibits a retailer from selling new computer equipment unless it shows a manufacturer's label and the manufacturer is listed as having a recovery program. Consumer Education -TCEQ is required to educate consumers on the collection, recycling and reuse of computer equipment via an Internet website hosted by the agency or the agency's designee and provide information on the manufacturers' collection and recycling programs and events, sites, and reuse programs. Compliance -TCEQ is authorized to conduct audits and inspections to ensure compliance. The attorney general is authorized to file suit to enjoin an activity in violation of this law. Consumers are responsible for any information left on recycled equipment. Standards -TCEQ is required to adopt standards for recycling or reuse of computer equipment according to Electronics Recycling Operating Practices approved by the Institute of Scrap Recycling Industries or another comparable nationally recognized organization. State Procurement -State vendors must comply with this law and state agencies must require prospective bidders to certify compliance with the law. Preference in contracting must go to a manufacturer that has a program to recycle the computer equipment of other manufacturers. Federal Preemption - If federal law establishes a national computer recycling program that is equivalent, federal law preempts state law. The penalty for a manufacturer that violates this law is $10,000 for the second offense and $25,000 for each subsequent violation. HB 2910 by Dan Gattis (R-Georgetown) and Steve Ogden (R-Bryan) authorizes municipalities to regulate rock quarries if they determine that the health, safety, or welfare of the residents of the municipality may be negatively affected by the disposal of byproducts or operation of the quarry; the quarry site or the operation of the quarry fails to comply with the land use zoning regulations of the municipality; or the quarry site or the operation of the quarry fails to correspond with the municipality's land use and development plans. HB 2983 by Brandon Creighton (R-Conroe) and Glenn Hegar, Jr. (R-Katy) requires a petition for the creation of a fresh water supply district to be signed by a majority of the persons who hold title to land in the proposed district that represents a total value of more than 50% of the value of all land in the proposed district. HB 3017 by Robert Puente (D-San Antonio) and Kip Averitt (R-Waco) makes technical changes to statutes relating to the certification of water treatment specialists. It transfers water treatment specialist licensing requirements from the Health and Safety Code to the Occupations Code but the certification program for water treatment specialists remains with the Texas Commission on Environmental Quality. HB 3070 by Mark Strama (D-Austin) and Kirk Watson (D-Austin) requires the State Energy Conservation Office to conduct a study to examine methods for introducing information into the marketplace about the energy efficiency of residential real property. HB 3098 by Robert Puente (D-San Antonio) and Kip Averitt (R-Waco) allows the Texas Commission on Environmental Quality to levy a fee of not more than $13,000 for reviewing and approving a contributing zone plan if the plan is for a development of more than 40 acres. It would prohibit fee revenues from being expended for anything other than monitoring surface water, stormwater and groundwater quality in the Edwards Aquifer Program areas or developing geographic information systems data layers for the Edwards Aquifer Program. HB 3220 by Gary Elkins (R-Houston) and Mike Jackson (R-Pasadena) expands the classes of persons allowed to participate in the dry cleaner remediation fund to include property owners; extends the benefit eligibility until Dec. 31, 2007, and requires payment of an annual registration fee of $1,500 and late fees for registering as a new participant. HB 3353 by Pat Haggerty (R-El Paso) and Eliot Shapleigh (D-El Paso) repeals subchapter B, Chapter 67.051 of the Water Code which sets out procedures for the dissolving of water supply or sewer corporations and transference of their assets to a municipality. HB 3378 by Vicki Truitt (R-Southlake) and Kim Brimer (R-Fort Worth) requires municipalities with a population of 500,000 or more 1.4 million or more in which two or more cities or town with a population of 300,000 or more are predominately located to give written consent before creation or expansion of water districts. HB 3475 by Pete Gallego (D-Alpine) and Carlos Uresti (D-San Antonio) authorizes counties located adj acent to an international border in which a military installation and a national recreation area are located to acquire, construct, or operate a water supply system or a sewage system to serve unincorporated areas of the county. HB 3554 by Carl Isett (R-Lubbock) and Robert Duncan (R-Lubbock) requires the Texas Commission on Environmental Quality to use risk-based corrective action in response to a release from an underground or aboveground storage tank. It extends the operating period and funding for the Petroleum Storage Tank Remediation Program and extends: the deadline for reimbursements for corrective actions from August 31, 2007 to August 31, 201 l; the deadline for placing sites in the state lead program from July 1, 2007 to July 1, 2011; and the deadline for submitting reimbursement claims from March 1, 2008 to March 1, 2012. It extends the petroleum products delivery fee through August 31, 2011 at a rate equal to one-third the current rate. HB 3581 by Charlie Howard (R-Sugar Land) and Jeff Wentworth (R-San Antonio) include in the costs that a county may asses for abating a nuisance all costs of management, remediation, storage, transportation, disposal, damages or other expenses incurred by the county. HB 3594 by Richard Raymond (D-Laredo) and Judith Zaffirini (D-Laredo) requires Texas Department of Transportation to erect and maintain border inspection facilities along a major highway at or near a border crossing from Mexico in Pharr (rather than Brownsville), Laredo and El Paso for the inspection of motor vehicles for compliance with federal and state commercial motor vehicle regulations. HB 3732 by Rick Hardcastle (R-Vernon) and Kip Averitt (R-Waco) establishes the Advanced Clean Energy Project Grant and Loan Program administered by the State Energy Conservation Office to encourage the development of advanced clean energy projects in an environmentally protective manner. Bonds are authorized to fund the program. The office is authorized to award up to $20 million in grants under the program each biennium and up to $10 million to make or guarantee loans. It requires the Texas Commission on Environmental Quality to establish a permitting procedure for advanced clean energy projects and to issue a final order issuing or denying a permit for an ultraclean energy project within nine months of the completion of the technical review of the application. It requires the Texas Commission on Environmental Quality to establish a nonexclusive list of facilities, devices, or methods for the control of air, water, or land pollution and update the list every three years. It prohibits a tax on the gross receipts from the sale of electricity generated by an advanced clean energy project. The comptroller is required to transfer the first $30 million in revenue collected from the gross receipts of utilities in a biennium to the advanced clean energy project account. HB 3776 by Robert Puente (D-San Antonio) and Jeff Wentworth (R-San Antonio) allows the Texas Water Development Board to approve a regional water plan for District L for the most recent reporting period that was submitted late and include it in the state water plan. HB 3837 by Yvonne Gonzalez Toureilles (D-Alice) and Glenn Hegar Jr. (R-Katy) clarifies that the Railroad Commission had the authority to issue permits for uranium exploration and gives them jurisdiction over uranium exploration holes and cased exploration wells until they are plugged and abandoned or registered with the Texas Commission on Environmental Quality. SB 3 by Kip Averitt (R-Waco) and Robert Puente (D-San Antonio) is an omnibus water resources conservation bill. The provisions in the bill on environmental flows are the same as HB 3. All provisions of HB 3 are in SB 3 except the sections relating to the Edwards Aquifer. In addition to the environmental flows provisions, key issues in SB 3 me u e: Water Conservation Awareness Program -The Texas Water Development Board is required to develop and implement a statewide water conservation awareness program to educate residents of the state about water conservation. Regional Water Plans - It requires the TWDB to review water conservation plans and annual reports submitted by water utilities. It authorizes an expedited amendment process for regional water plans and it directs the board to perform compliance reviews of water conservation plans and annual reports. Climate Change Study - It requires the TWDB incoordination with the Far West Texas Regional Water Planning Group to conduct a study on the impact of climate change on surface water supplies from the Rio Grande and to submit a report to the legislature no later than December 3 1, 2008 on the impact. Sustainable Water Supply Research Center -The TWDB is authorized to establish and operate the Sustainable Water Supply Research Center at the University of Texas at Arlington to conduct, sponsor, or direct multidisciplinary research directed toward promoting water conservation through the development of a sustainable water supply; and mitigating the effect of diminishing water supplies on the economy and people of the state. Water Conservation by Home-Rule Municipalities - It authorizes home-rule municipalities to adopt and enforce ordinances requiring water conservation in the municipality and by customers of the municipality's water and sewer utility in the extraterritorial jurisdiction of the municipality. Water Conservation Plan -The TCEQ must require a retail public utility that provides potable water service to 3,300 or more connections to submit to the executive administrator of the board a water conservation plan based on specific targets and goals developed by the retail public utility and using appropriate best management practices or other water conservation strategies. Consolidated Billing and Collection - It authorizes a retail public utility providing water service to contract with a retail public utility providing sewer service to bill and collect the sewer service provider's fees and payments as part of a consolidated process with the billing and collection of the water service provider's fees and payments. Unique Reservoir Designation - It specifies that a site is considered to be a site having unique value for the construction of a reservoir if that site is recommended for designation in the 2007 State Water plan adopted by the TWDB. No state agency or political subdivision of the state may obtain a fee title or an easement that would significantly prevent the construction of a reservoir on any of the designated sites. Region C Study Commission - It creates the Study Commission on Region C Water Supply and requires the TWDB to provide staff support and funding for professional services and for commission-related duties. The commission will review water supply alternatives available to Region C including existing and proposed reservoirs and groundwater supplies. Legislative Joint Interim Committee - It creates a joint interim oversight committee to review financing of water infrastructure projects and funding for water programs administered by state agencies. SB 12 by Kip Averitt (R-Waco) and Dennis Bonnen (R-Angleton) makes changes to the Texas Emissions Reduction Plan (TERP) and the Low-Income Vehicle Repair Assistance Program (LIRAP): Low Income Vehicle Repair and Assistance Program - It expands eligibility for LIRAP funds to include vehicle owners at 300% of the federal poverty level. It increases the replacement amount of a motor vehicle to $3,000, or $3,500 if replaced with a hybrid vehicle. Eligible vehicles are current model year or previous 3 model years for cars; previous 2 model years for trucks; or previous model year for hybrids. Motor Vehicle Recyclers - It stipulates that recyclers of the LIRAP vehicles are only required to pay for the transport costs to get the vehicle to their facility. Texas Mobility Fund - It retains the transfer of Texas Emission Reduction Program funds from title transfers to the Texas Mobility Fund in 2010, but extends an existing provision requiring reimbursement by Texas Department of Transportaion to keep TERP whole until 2015. Texas Emission Reduction Plan - It increases the per ton cap for TERP programs from $13,000 to $15,000. State Agencies - It requires state agencies and institutions of higher education, in addition to political subdivisions, to implement all cost effective energy efficiency measures and to establish a goal to reduce energy consumption by 5% each year for six years. Residential Code - It allows the State Energy Conservation Office to adopt revisions to the international residential code if recommended by the Energy Systems Lab and requires SEGO to get stakeholder input. Air Quality Violations - It clarifies that self reported Texas Commission on Environmental Quality violations that do not require formal enforcement shall not be included in a proposed enforcement action unless they are repeat violations or they have not been corrected within the timeframe specified by the TCEQ. Concrete Batch Plants - It requires TCEQ to give notice for an application for a concrete batch plant to county and municipal officials. Houston Area Research Center - It makes changes to the administrative practices and structure of the Houston Advanced Research Center which is administering the new technology research and development program and subjects HARC for the first time to open government and public information laws. Engine Testing Facility - It allows TCEQ to make grants for the establishment of an engine testing facility to evaluate advanced technology and fuels for producing emissions reductions. Residential Solar Electric Systems - It requires TCEQ to issue a grant for a demonstration program for installation of residential solar electric systems. SB 387 by John Carona (R-Dallas) and Linda Harper Brown (R-Irving) adds "refuse" (trash, rubbish, garbage, or other discarded material) to the list of loose materials that can only be transported if covered or transported in a way to prevent it from blowing off or spilling over the load-carrying compartment. SB 585 by Leticia Van de Putte (D-San Antonio) and David McQuade Leibowitz (D-San Antonio) requires the Edwards Aquifer Authority to adopt rules for the control of fires in the aquifer's recharge zone. SB 616 by Robert Duncan (R-Lubbock) and Robert Puente (D-San Antonio) authorizes the executive administrator, with the approval of the Texas Water Development Board to acquire, apply for, register, secure, hold, protect, and renew a patent for the invention or discovery of any new and useful process, machine, manufacture, composition of matter, art, or method or any new use of a known (or improvement on a known) process, machine, manufacture, composition of matter, art, or method. SB 622 by John Carona (R-Dallas) and Bill Callegari (R-Katy) requires the executive administrator of the Water Development Board to collect date related to emergency management as part of the Texas Natural Resources Information System. It moves the deadline from September 1 to November first the deadline for the biennial report from The Texas Geographic Information Council on the use of geospatial data (GIS) technology by state government. SB 657 by Kel Seliger (R-Amarillo) and Robert Puente (D-San Antonio) changes the amount from $25,000 to $50,000 for which a water district has to require a contractor to submit a bond before bidding on a construction project. SB 662 by Jeff Wentworth (R-San Antonio) and Harvey Hilderbran (R-Kerrville) requires the Texas Commission on Environmental Quality, in consultation with the Texas Water Development Board, to adopt rules requiring persons who submit subdivision plats to transmit to the Texas Water Development Board and appropriate groundwater conservation districts any groundwater information which would be useful to the agencies. SB 714 by Troy Fraser (R-Marble Falls) and Robert Puente (D-San Antonio) allows a groundwater conservation district to adopt rules requiring an owner or operator of a water well used in connection with oil or gas well operations to report groundwater withdrawals using reasonable and appropriate reporting methods and frequency. SB 747 by Kirk Watson (D-Austin) and Valinda Bolton (D-Austin) authorizes the Barton Springs-Edwards Aquifer Conservation District to increase production fees on all conditional permits and materially amended permits at their next renewal date to not more than the greater of 38 cents per thousand gallons or the raw surface water cost of other wholesale suppliers serving customers in the district. The district is authorized to adopt a differential rate structure for the nonagricultural production fees to promote alternatives to the exclusive use of groundwater resources. The district is also authorized to restrict groundwater production during a drought. SB 814 by Kyle Janek (R-Houston) and Dawnna Dukes (D-Austin) allows the Department of State Health Services to establish standards for follow-up care provided to children with a confirmed blood led level of concern. The standards may include an environmental lead investigation of the child's home, child-care facility (with written permission of the owner or operator), or child-occupied facility that may be a source of a lead hazard causing or contributing to the child's lead exposure. The standards can also include guidance to parents, guardians, and consulting physicians on how to eliminate or control lead exposures that may be contributing to the child's blood lead level. SB 1037 by Robert Duncan (R-Lubbock) and Drew Darby (R-San Angelo) requires The Texas Commission on Environmental Quality to regulate evaporation pits utilized to evaporate water and collect brine water or residual salts and minerals not regulated by the Texas Railroad Commission. It requires owners or operators of an evaporation pit to ensure that the pit has a liner designed by a licensed engineer that meets standards at least as stringent as those applying to a Type 1 landfill. It also requires owners and operators to have financial assurance and requires the Texas Commission on Environmental Quality to adopt rules to protect surface water and groundwater from the risks from commercial groundwater evaporation pits and to levy cost recovery fees. SB 1271 by Royce West (D-Dallas) and Helen Giddings (D-Desoto) authorizes counties to finance (current law allows them to acquire, own, operate, or contract for the operation o~ a water or sewer utility system to provide water and sewer services within the municipality. It lowers the population threshold from 2.8 million to 2 million for counties to serve an area within a municipality. SB 1383 by Kel Seliger (R-Amarillo) and John Smithee (R-Amarillo) establishes procedures related to an investigation and a hearing conducted by a groundwater conservation district in response to a complaint or suit by an owner of a well regarding another person operating or drilling wells without a permit or in violation of the district's rules. SB 1436 by Royce West (D-Dallas) and Brandon Creighton (R-Conroe) transfers the National Flood Insurance Program from Texas Commission on Environmental Quality to the Texas Water Development Board. It requires the Texas Water Development Board to make floodplain maps and make floodplain information accessible to the public through the agency's website and requires them to provide public education and outreach through the agency's field offices to encourage participation in the program. The first 3.05 million of insurance mainte SB 1461 by Kel Seliger (R-Amarillo) and George "Buddy" West (R-Odessa) authorizes the governor to contract for the state with atax-exempt organization including the FutureGen Industrial Alliance, Inc., to implement a clean coal project. It authorizes the governor and the comptroller to j ointly adopt provisions for issuing franchise tax credits to the entity to promote research and development activities related to a clean coal project. The authority expires if FutureGen Industrial Alliance loses its qualification as a tax-exempt entity. The Bureau of Economic Geology and the University of Texas at Austin are required to monitor, measure, and verify the permanent status of sequestered carbon dioxide in which the commission has acquired the right, title and interest. It authorizes the Texas Department of Criminal Justice (in addition to the University of Texas System) to enter into a lease with an owner or operator of a clean coal project. A state agency is authorized to request the attorney general to represent the agency in a legal proceeding that arises from an escape or migration of carbon dioxide captured or sequestered in connection with a clean coal project. If the attorney general declines, the agency can acquire outside counsel for the matter. SB 1524 by Jeff Wentworth (R-San Antonio) and Harvey Hilderbran (R-Kerrville) provides that a person who excavates, removes, destroys, injures, alters in any significant way, or defaces any part of a cave owned by the state without a permit, commits a Class A misdemeanor, except in the case when the person was convicted of a previous violation, in which case the person penalty is a state jail felony. A person who knowingly vandalizes a cave by breaking, cracking, carving, or harming the surface can be charged with a state jail felony. SB 1604 by Robert Duncan (R-Lubbock) and Dennis Bonnen (R-Angleton) transfers the authority to regulate radioactive substances including low-level radioactive waste from the Department of Health and Human Services to Texas Commission on Environmental Quality. It requires the Texas Commission on Environmental Quality to regulate and license the disposal of radioactive substances; the processing or storage of low-level radioactive waste or naturally occurring radioactive material waste received from other persons, except oil and gas naturally occurring radioactive material; the recovery or processing of source material and byproduct material; and sites for the disposal of low- levelradioactive waste, by-product material, or naturally occurring radioactive material waste. It requires license holders authorized to dispose of a radioactive substance from other persons to remit 10% of the license holder's gross receipts - 5% goes to the comptroller and 5% stays in the host county. It allows Texas Commission on Environmental Quality to issue injection well permits for uranium mining. SB 1665 by Kip Averitt (R-Waco) and Dennis Bonnen (R-Angleton) prohibits Texas Commission on Environmental Quality from adopting or enforcing rules which limit emissions from residential water heaters to less than 40 nanograms of nitrogen oxides per joule unless a lower limit is established by a federal statute or rule. SB 1666 by Kip Averitt (R-Waco) and Frank Corte (R-San Antonio) prohibits the Railroad Commission from filing a lien against a person who owned the surface before May 2,1977 of land adversely affected by past mining practices and reclaimed by the commission. SB 1667 by Averitt (R-Waco) and Frank Corte (R-San Antonio) increases the maximum penalty fee for a violation of a coal mining and reclamation operations or underground mining operations permit from $5,000 to $10,000 SB 1670 by Kip Averitt (R-Waco) and Myra Crownover (R-Denton) requires outstanding reconnection fees to be paid by oil and gas operators to be paid before receiving or renewing a certificate of compliance from the Railroad Commission. It prohibits the operation of any well if the person operating the well does not show a certificate of compliance or if the certificate of compliance has been cancelled. SB 1672 by Kip Averitt (R-Waco) and Dennis Bonnen (R-Angelton) changes Texas Commission on Environmental Quality's requirement for the Clean Air Interstate Rule number of control periods from seven to nine by shifting the allocation update from 2016 to 2018. SB 1673 by Kip Averitt (R-Waco) and Dennis Bonnen (R-Angleton) allows the Texas Commission on Environmental Quality to move up the renewal of an air permit to coincide with a permit amendment that requires public notice. SB 1762 by Eliot Shapleigh (D-El Paso) and Ryan Guillen (D-Rio Grande City) requires the Texas Water Development Board incoordination with the Far West Texas Regional Water Planning Group to conduct a study on the possible impact of climate change on surface water supplies from the Rio Grande. SB 1932 by Carlos Uresti (D-San Antonio) and Robert Puente (D-San Antonio) allows local governments to assess fees to fund the implementation, administration and operation of stormwater permitting programs, and prohibits these regulating entities from assessing a fee against property that is exempt from property taxes or subject to an assessment for the same purpose by another entity. SB 2000 by Kevin Eltife (R-Tyler) and Dennis Bonnen (R-Angleton) requires the Texas Commission on Environmental Quality to develop a grant program to assist facilities in reducing emissions of nitrogen oxides from stationary gas-fired, rich-burn compressor engines by installing nonselective catalytic reduction systems or other commission- approvedcontrol systems. PUBLIC EDUCATION HB 121 by Dwanna Dukes (D-Austin) and Juan "Chuy" Hinojosa (D-McAllen) requires school districts to adopt and implement a dating violence policy to be included in the district improvement plan. HB 188 by Scott Hochberg (D-Houston) and Leticia Van de Putte (D-San Antonio) requires the State Board of Education to designate a request for production of textbooks in a subj ect area and grade level by the school year in which the textbooks are intended to be made available in classrooms and not by the school year in which the board makes the request for production. It requires the board to adopt rules for the midcycle review and adoption of a textbook for a subj ect for which textbooks are not currently under review by the board. It allows the board to adopt supplemental textbooks that are not on the conforming or nonconforming list. If the total cost for the supplemental textbooks requisitioned by a school district is less than the limit on the cost for a single textbook on the conforming list for the course, the district is entitled to receive credit. It gives credit to school districts that purchase textbooks at less than the stated cost limit. The credit is shared between the state textbook fund the district 50/50. The district can use the credit toward other textbooks or technology materials. HB 189 by Scott Hochberg (D-Houston) and Kyle Janek (R-Houston) prohibits the superintendent of a school district from receiving any financial benefit for personal services performed by the superintendent for any business entity that conducts or solicits business with the district. Any financial benefit received by the superintendent for performing personal services for any other entity must be approved on acase-by-case basis by the board of trustees in an open meeting. HB 208 by Kino Flores (D-Mission) and Eddie Lucio (D-Brownsville) exempts from no pass/no play laws students enrolled in joint credit or concurrent enrollment programs allowing them to participate in extra-curricular and UIL activities. HB 314 by Rob Eisler (R-The Woodlands) and Leticia Van de Putte (D-San Antonio) allows parents of multiple-birth siblings (twins, triplets, etc) to request placement of the siblings in the same or different classrooms. If school district personnel determine that the requested placement is disruptive to the school, the principal can determine the appropriate classroom placement for the siblings. HB 323 by Mike Hamilton (R-Mauriceville) and John Carona (R-Dallas) requires seat belts on school buses purchased after September 1, 2010 and on all school buses used to transport students after September 1, 2011. Students riding in the buses will be required to wear a seat belt if the bus is equipped with them. Accidents involving school buses must be reported by school districts to Texas Education Agency. HB 566 by Mike Hamilton (R-Mauriceville) and Tommy Williams (R-The Woodlands) allows the board of trustees of a school district to adopt a policy requiring a person who is 18 years of age to attend school until the end of the school year. HB 708 by Robert Puente (D-San Antonio) and Carlos Uresti (D-San Antonio) changes the week schools observe Celebrate Freedom Week from the week of November 11 to the week of September 17. HB 828 by Scott Hochberg (D-Houston) and Florence Shapiro (R-Plano) sets the guaranteed yield per weighted student for the four cents (which increases to six cents in 2009) by which a school district's maintenance and operations tax rate exceeds the state compression percentage and that of Austin Independent School District, or the yield from the previous year if higher. HB 945 by Abel Herrero (D-Robstown) and Juan "Choy" Hinojosa (D-McAllen) allows a school district in a city bordering the Gulf of Mexico with a population of more than 230,000 according to the 1980 census to hold the district election on any Saturday in April of odd numbered years. HB 978 by Wayne Smith (R-Baytown) and Mike Jackson (R-Pasadena) gives school districts 30 more days to produce their annual financial statement; from 120 days following the close of business to 150 days. HB 1059 by Tan Parker (R-Flower Mound) and Jane Nelson (R-Lewisville) is the Emily Lastinger Act. It authorizes the Department of State Health Services to modify or delete any required immunizations. The department is required to annually prepare a list of the required immunizations for admission to public schools and of any additional immunizations the department recommends. School districts that maintain an Internet website must post in English and Spanish a list of the immunizations required for admission; vaccines recommended by the Department of State Health Services; and health clinics in the district that offer the influenza vaccine. The list of recommended immunizations must include the influenza vaccine, unless the department requires the influenza vaccine. HB 1137 by Scott Hochberg (D-Houston) and Judith Zaffirini (D-Laredo) allows students of up to 26 years of age to be admitted to school districts to pursue a high school diploma. If a student is in attendance for at least 75% but less than 90% of the days a class is offered maybe given credit for the class if the student completes a plan approved by the school's principal that provides for the student to meet the instructional requirements of the class. It gives children who have ever been in the conservatorship of the Department of Family and Protective Services eligibility for apre-kindergarten program. HB 1270 by Rob Eisler (R-The Woodlands) and Leticia Van de Putte (D-San Antonio) mandates (rather than only allows) the Commissioner of Education to establish an intensive reading or language intervention pilot programs in school districts. HB 1287 by Warren Chisum (R-Pampa) and Craig Estes (R-Wichita Falls) requires school districts to offer students in grade nine or above an elective course on the Hebrew Scriptures (Old Testament) and its impact and an elective course on the New Testament and its impact; or an elective course that combines the two courses. A student may not be required to use a specific translation as the sole text of the Hebrew Scriptures or New Testament and may use as the basic textbook a different translation from that chosen by the board of trustee course offered under this law must follow applicable law and all federal and state guidelines in maintaining religious neutrality and accommodating the diverse religious views, traditions, and perspectives of students in their school district. The course must not endorse, favor, or promote or disfavor or show hostility toward, any particular religion or nonreligious faith or religious perspective. The school district is not required to offer the course if fewer than 15 students at a campus register for the course. HB 1400 by Harold Dutton (D-Houston) and Florence Shapiro (R-Plano) requires the Texas Public Finance Authority to establish a nonprofit corporation to act on behalf of the state to issue revenue bonds to provide loans or other credit support for the obligations of open-enrollment charter schools. HB 1563 by Valinda Bolton (D-Austin) and Eliot Shapleigh (D-El Paso) requires a school district, upon request of the parent, to award a high school diploma posthumously to a student who died while enrolled in the district at grade level 12 if the student was academically on track at the time of death. This law does not apply to a student that was convicted of a felony. HB 1609 by Myra Crownover (R-Denton) and Eliot Shapleigh (D-El Paso) requires the Commissioner of Education to coordinate the efforts of the Communities in Schools program and to set performance goals, obj ectives and measures that consider improvement in student behavior, academic achievement, and promotion, graduation, retention, and dropout rates. It requires the commissioner to adopt policies concerning the responsibility of the agency in encouraging local businesses to participate in local Communities In Schools programs; the responsibility of the agency in obtaining information from participating school districts; the use of federal or state funds available to the agency for the programs; and any other areas concerning the program. If the commissioner determines that a program consistently fails to achieve the performance goals, objectives, and measures established by the commissioner, the commissioner may withhold funding from that program and require the program to compete through a competitive bidding process to receive funding to participate in the program. HB 1748 by Geanie Morrison (R-Victoria) and Florence Shapiro (R-Plano) transfers most of the responsibilities for the Governor's School Program, which develops college readiness for public school students through summer programs, from the Texas Education Agency to the Texas Higher Education Coordinating Board. It adds fine arts to the curriculum that can be offered. HB 1844 by Charlie Howard (R-Sugar Land) and Kyle Janek (R-Houston) requires school districts to permit home-schooled students to take the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT) or college advanced placement test offered by the district. HB 1922 by Lois Kolkhorst (R-Brenham) and Florence Shaprro (R-Plano) rolls forward the eligibility date for the Existing Debt Allotment Program to provide state assistance for the repayment of debt service on bonds for which the district levied taxes and made payments on during the 2006-2007 school year. Those districts are eligible for assistance under the program. HB 2171 by David Swinford (R-Dumas) and Kel Seliger (R-Amarillo) allows school districts that do not offer each grade level from kindergarten through grade 12 and whose prospective or former students generally attend school in another state for the grade levels the school district does not offer to changes the mandatory school start date to begin the school year on any date they choose. HB 2176 by Joe Deshotel (D-Beaumont) and Royce West (D-Dallas) requires the State Board of Education in conjunction with the Office of the Attorney General to develop a parenting and paternity awareness that a school district must use in the high school curricu um. HB 2237 by Rob Eisler (R-The Woodlands) and Florence Shapiro (R-Plano) makes several changes to laws relating to public education including: Dropout Prevention - It requires the Commissioner of Education to contract with one or more education research centers to study best practices for dropout prevention. It creates a pilot program to provide grants to school districts to fund student club activities for students at risk of dropping out of school (limited to $4 million per biennium). It establishes a pilot program to implement a local collaborative dropout reduction grant program to be funded from appropriated funds of up to $4 million per year. It establishes a pilot program to award grants to participating campuses to provide intensive academic instruction during the summer semester to promote college and workforce readiness to students at risk of dropping out of school with state grant awards limited to $750 per student. It requires the Commissioner of Education to award grants to organizations that provide volunteers for programs to enhance college readiness, workforce readiness, dropout prevention, and personal financial literacy. Professional Development - It establishes grants of up to $2.5 million per year to provide technical assistance and professional development activities for teachers and administrators. Math, Science and Technology Instruction - It requires the commissioner to establish a mathematics instructional coaches' pilot program for middle schools, junior high schools, and high schools. The Texas Higher Education Coordinating Board is required to establish and fund mathematics, science, and technology teacher preparation academies at institutions of higher education. It establishes an intensive technology- basedacademic intervention pilot program. Grants may not exceed $50 per participating student and must be matched by other funds. It requires the Commissioner of Education to establish a pilot program to provide grants to rural campuses for technology-based supplemental instruction. High School Completion and Success Initiative Council - It establishes the High School Completion and Success Initiative Council to administer grants and provide technical assistance in support of innovative research-based high school improvement programs and to enhance education practices. New Instructional Facilities Allotment - It allocates an additional $1 million annually to supplement the new instructional facilities allotment to minimize the impact o proration. Reading Instruction - It directs the Commissioner of Education to establish teacher academies for teachers providing reading instruction for students in grades 6 through 8 by June 1, 2008. Attendance in a reading academy is required for teachers of reading, mathematics, science, or social studies in grades 6, 7, or 8 on campuses rated academically unacceptable based on student performance on reading assessments. It directs school districts to administer a reading instrument adopted by the commissioner to each 7th grade student whose performance on the 6th grade reading assessment indicates a lack of reading proficiency and requires school districts to provide additional reading instruction and intervention to 7th grade students to address areas of need identified by the reading instrument. Science Laboratory Grant Program - It creates a science laboratory grant program as a competitive grant program to provide funds to school districts for the purpose of constructing or renovating high school science laboratories. The amount of assistance per proj ect is limited to no more than $200 per square foot for new construction of science laboratories or $100 per square foot for renovation of existing science laboratories. Priority will be given to school districts with low wealth per average daily attendance. In order to qualify for a grant, a school district must demonstrate that its existing science laboratories are insufficient to comply with the curriculum requirements for the recommended and advanced high school programs that include four courses of science. HB 2399 by Dianne White Delisi (R-Temple) and Florence Shapiro (R-Plano) sets up teacher retention demonstration projects. Emphasis is projects that employ innovative, research-based practices to identify and retain highly effective teachers such as a teacher recruitment and selection strategy focused on attracting new and experienced teachers who have deep content knowledge and a commitment to long-term participation in the teaching profession; an alternative certification program that prepares individuals who have deep content knowledge and outstanding academic or professional achievement for long-term participation in the teaching profession; a campus governance model that engages teachers in leading campus management activities, including student assessment data analysis, professional development planning, instructional coaching, and resource allocation; a differentiated compensation plan that addresses teaching shortages in specific subject areas, instructional weaknesses at underperforming campuses, limited advanced academic course offerings or other critical needs identified by the district; or another research-based strategy designed to improve teacher retention rates. HB 2455 by Byron Cook (R-Corsicana) and Kel Seliger (R-Amarillo) allows excused absences for students to appear in court. HB 2503 by Rob Eisler (R-The Woodlands) and Tommy Williams (R-The Woodlands) requires the Commissioner of Education to set up a pilot program in which a participating school district gives a technology literacy assessment to its students. It requires the Texas Education Agency to adopt the assessment instrument designed to assess an individual student's mastery of the essential knowledge and skills in technology. The test must be administered online, be aligned with the essential knowledge and skills requirements for technology applications; and incorporate performance-based measures, including a requirement that students perform certain technological tasks and respond to questions based on the completion of those tasks. The assessment instrument must be designed in a manner to provide the district with an automatic report of the technology literacy proficiency of a district student in a format that is compatible with the school district and state data information systems. HB 2563 by Kelly Hancock (R-Fort Worth) and Leticia Van de Putte (D-San Antonio) outlines the duties of the superintendent and school boards of trustees and officers of regional service centers. HB 2646 by Patrick Rose (D-Dripping Springs) and Kirk Watson (D-Austin) adds teachers certified by the National Board for Professional Teaching Standards to the list of those eligible for stipends under the educator excellence awards program. HB 2814 by Rob Eisler (R-The Woodlands) and Leticia Van de Putte (D-San Antonio) requires the Commissioner of Education to establish a pilot project on dual language immersion programs and the effect of those programs on a student's ability to advance to high school, graduate from high school. HB 2864 by Warren Chisum (R-Pampa) and Florence Shapiro (R-Plano) requires the Commissioner of Education to establish a pilot program under which state grant funds are provided to finance supplemental technology education to rural school districts. HB 3190 by Helen Giddings (D-Dallas) and John Carona (R-Dallas) prohibits persons with intoxication offenses on their record within the previous 1 Oyear-period to drive school buses. HB 3226 by Dan Branch (R-Dallas) and Royce West (D-Dallas) allows school districts to forego state aid if the district is in a position to "net out' positively when recapture funds are compared to entitlement of hold harmless state funds. It authorizes the Commissioner of Education to consider the district to have reduced its wealth per student to the equalized wealth level by deducting the recapture amount from the hold harmless amount of state aid, in lieu of a recapture option that requires an election. HB 3485 by Susan King (R-Abilene) and Florence Shapiro (R-Plano) requires the Texas Education Agency to establish a panel to review and recommend revisions to the career and technical education curriculum and review and recommend revisions for the program in which high schools and articulated postdecondary institutions allow high school students to take advanced technical credit courses. It also allows college credit for advance career and technology courses. HB 3618 by Richard Raymond (D-Laredo) and Judith Zaffirini (D-Laredo) requires the Department of State Health Services in consultation with the Texas Education Agency to adopt criteria for the development of a pilot program that is designed to prevent and detect Type 2 diabetes in a school district located on the Texas-Mexico border. HB 3659 by Jim Dunnam (D-Waco) and Rodney Ellis (D-Houston) prohibits the disclosure of the name of a student involved in an improper relationship with an educator. HB 3678 by Charlie Howard (R-Sugar Land) and Tommy Williams (R-The Woodlands) is the Religious Viewpoints Antidiscrimination Act. It requires school districts to treat a student's voluntary expression of a religious viewpoint in the same manner the district treats a student's voluntary expression of a secular or other viewpoint and prohibits the district from discriminating against the student based on a religious viewpoint expressed by the student. HB 3699 by Brian McCall (R-Plano) and Tommy Williams (R-The Woodlands) adds a new account to the permanent school fund for the management of real estate investments. It is managed by the School Land Board. Mineral interests are also added to the responsibilities of the board. HB 3826 by Geanie Morrison (R-Victoria) and Judith Zaffirini (D-Laredo) requires completion of the recommended or advanced curriculum for high school graduates to be admitted to general academic teaching institutions of Texas under the top 10% rule. SB 7 by Juan Hinojosa (D-McAllen) and Rob Eisler (R-The Woodlands) requires each school campus to have an automated external defibrillator and to train personnel and volunteers in cardiopulmonary resuscitation and the use of the defibrillator. It directs the State Board of Education to include elements related to cardiopulmonary resuscitation and the use of automated external difibrillators a part of the essential knowledge and skills of the Health curriculum. It directs the Commissioner of Education to establish a pilot program to administer cardiovascular screenings to sixth grade students at selected campuses. SB 8 by Kyle Janek (R-Houston) and Dan Flynn (R-Van) requires mandatory, random testing for illegal steroids and other performance enhancing drugs in Texas public high schools. SB 9 by Florence Shapiro (R-Plano) and Dan Branch (R-Dallas) is the School Safety Act. It subjects all public school and charter school personnel to a national criminal history record information review. SB 82 by Leticia Van de Putte (D-San Antonio) and Rob Eisler (R-The Woodlands) requires the Commissioner of Education to develop and adopt an extracurricular activity safety training program for coaches, trainers, or sponsors for an extracurricular athletic activity; physicians employed by or who volunteers to assist with an extraCUrrlCUlar actlVlty; and directors responsible for a school marching band. It must include training in emergency action planning; cardiopulmonary resuscitation; communicating effectively with 9-1-1 emergency service operators and other emergency personnel; and recognizing symptoms of potentially catastrophic injuries, including head and neck injuries, concussions, injuries related to second impact syndrome, asthma attacks, heatstroke, cardiac arrest, and injuries requiring use of a defibrillator. SB 135 by Jeff Wentworth (R-San Antonio) and Rob Eisler (R-The Woodlands) prohibits schools districts from restricting employees from communicating directly with school board trustees. Ex parte communications are prohibited. SB 218 by John Carona (R-Dallas) and Will Hartnett (R-Dallas) adds before-school and after-school programs provided on a tuition basis to the list of programs required to be icense . SB 282 by Mario Gallegos (D-Houston) and Harold Dutton (D-Houston) requires school districts to notify parents of high schools students of available programs providing college credit to them. Posting on the school district's web site is considered notice. SB 370 by Florence Shapiro (R-Plano) and Rob Eisler (R-The Woodlands) prohibits a school district from requiring a district employee to waive immunity from liability for an act for which the employee is immune from liability. It also prohibits a school district from requiring a district employee who acts in good faith to pay for or replace property belonging to a student or other person that is or was in the possession of the employee because of an act that is incident to or within the scope of duties of the employee's position of employment. The district may not require an employee who acts in good faith to pay for an electronic textbook or technological equipment that is damaged. The district is allowed to enter into a written agreement with a school employee whereby the employee assumes financial responsibility for electronic textbook or technological equipment usage off school property. SB 530 by Jane Nelson (R-Lewisville) and Rob Eisler (R-The Woodlands) requires students in grades K-6 to participate in moderate to vigorous daily physical activity for 30 minutes; require grades 6-8 to do the same for at least four semester during those years; and require school districts to provide annual physical fitness assessments of students in grades 3-12. SB 670 by Rodney Ellis (D-Houston) and Hubert Vo (D-Houston) sets a deadline of December 31, 2007 for school district boards of trustees to adopt a resolution to change the terms of the board members. SB 673 by Judith Zaffirini (D-Laredo) and Rob Eisler (R-The Woodlands) requires school districts to prepare a certificate for a special education student who has completed four years of high school, even if the individualized plan has not been completed. The student would be allowed to participate in only one ceremony. SB 827 by Royce West (D-Dallas) and Diane Patrick (R-Arlington) adds middle schools to the schools that can receive grants from the Department of Agriculture. SB 960 by Eliot Shapleigh (D-El Paso) and Pat Haggerty (R-El Paso) allows military dependents to satisfy the exit-level testing requirement through satisfactory performance on one of more alternative nationally recognized norm-referenced assessment instruments if the student, as a result of a military transfer or deployment of the person serving in the military, transfers into the public school system of this state after completion of the student's sophomore year in high school. SB 962 by Eliot Shapleigh (D-El Paso) and Pat Haggerty (R-El Paso) reduces a school district's wealth per student by 25% if the commissioner finds the district must provide additional facilities for students transferred due to base closure or realignment SB 1031 by Florence Shapiro (R-Plano) and Rob Eisler (R-The Woodlands) phases out the TAKS test for grades 9 -11 and phases in end-of course exams assessments starting with 9th grade students in the 2011-1012 school year. It establishes 12 end-of course exams in the four core subject areas of English/language arts, math, science, and social studies. Students will be required to achieve a cumulative score within each content area equal to earning 70 points on each test, in order to graduate. Students must score at least 60 in order to count the score toward the cumulative number. Scores on the end-of course exams will count as 15% of a student's overall course grade. Assessments will include a separate series of questions to measure college readiness and the need for developmental coursework in higher education. Exams in lower level courses will have questions to determine readiness for advanced coursework. Students in the 9th and 10th grades will be required to complete a college readiness diagnostic assessment, followed by a college entrance exam (ACT or SAT) in the 1 l th grade at state expense. It also creates a committee to study the accountability system and directs the legislature to adopt anew accountability system aligned with the new assessments by September 1, 2011. SB 1161 by Mike Jackson (R-Pasadena) and Wayne Smith (R-Baytown) authorizes a school district to file a complaint for referral to a juvenile court if a student fails to attend school without excuse on ten or more days within asix-month period within ten (rather than seven) school days of the student's last absence. SB 1433 by Leticia Van de Putte (D-San Antonio) and Patrick Rose (D-Dripping Springs) requires the State Board of Education to create the Employers for Educational Excellence Award program to honor employers that implement a policy to encourage and support their employees who actively participate in activities of schools. SB 1456 by Carlos Uresti (D-San Antonio) and Joaquin Castro (D-San Antonio) requires the Texas Education Agency to maintain on the agency's Internet website a list of links to websites that provide information regarding child abuse awareness and prevention and to develop and periodically update a training program on prevention of child abuse that a school district can use for staff development. SB 1517 by Kyle Janek (R-Houston) and Scott Hochberg (D-Houston) gives students in advanced placement, international baccalaureate courses, or dual credit honors courses an exemption from the no pass/no play rule requiring suspension from extracurricular activities due to low scores. SB 1713 by Kevin Eltife (R-Tyler) and Diane Patrick (R-Arlington) allows a parent to designate the residence of a grandparent or a child-care facility for purposes of transportation provided by a public school transportation system. SB 1788 by Florence Shapiro (R-Plano) and Jerry Madden (R-Plano) authorizes a virtual school network to provide online education. The State Board of Education is required to establish objective criteria for electronic courses to ensure alignment with the Texas essential knowledge and skills. SB 1871 by Judith Zaffirini (D-Laredo) and Scott Hochberg (D-Houston) requires school districts to report electronically each student's raw score on the reading instrument for use in the school readiness certification system. It requires the Texas Education Agency to contract with the State Center for Early Childhood Development to receive and use scores on behalf of the agency. A school district that is required to offer bilingual education or special language programs must include in the district's Public Education Information Management System report: demographic information on students enrolled in the district's bilingual education or special language programs; the number and percentage of students enrolled in each instructional model of a bilingual education or special language program offered by the district; and the number and percentage of students identified as students of limited English proficiency who do not receive specialized instruction. It prohibits aggregating information on student performance in a bilingual education or special language program. SB 1912 by Eliot Shapleigh (D-El Paso) and Pat Haggerty (R-El Paso) allows temporary certification of educators in districts experiencing growth as a result of the Defense Base Closure and Realignment Act. HIGHER EDUCATION HB 86 by Dan Branch (R-Dallas) and Steve Ogden (R-Bryan) excludes course credits earned to satisfy requirements for a Reserve Officer's Training Corps program from the timely graduation tuition rebate program. HB 125 by Dianne White Delisi (R-Temple) and Leticia Van de Putte (D-San Antonio) extends tuition and fee exemptions to children of members of the armed forces who became totally disabled as aresult of aservice-related injury. HB 317 by Sid Miller (R-Stephenville) and Troy Fraser (R-Marble Falls) requires the Texas Higher Education Coordinating Board to conduct a study to determine the merits of permitting public institutions of higher education to issue revenue bonds to fund capital projects at branch campuses, extension centers, system centers, and multi- institutional teaching centers, regardless of the level of student enrollment at those campuses and centers and any student enrollment levels at those campuses and centers that maybe appropriate to serve as a statutory prerequisite for issuing revenue bonds or other obligations to fund capital projects at those campuses and centers. HB 544 by Mark Strama (D-Austin) and Kirk Watson deletes the prohibition on public junior college districts from charging reduced tuition (resident tuition) to students who reside in an independent school district that meets the criteria for establishment of a junior college district. HB 589 by Jimmie Don Aycock (R-Killeen) and Troy Fraser (R-Marble Falls) institutes anew computation for the requirement that the enrollment at Tarleton State University System Center -Central Texas in Killeen must reach enrollment of 1,000 full-time students to operate as Texas ABM University -Central Texas. Full-time student enrollment would be computed based on all semester credit hours completed during the fall and spring semesters and the summer session of the academic year. It also changes the computation for Texas A&M University -Kingsville System Center -San Antonio and North Texas System Center at Dallas. The computation will be computed in the same way as Texas A&M University -Central Texas. HB 741 by Tracy King (D-Batesville) and Judith Zaffirini (D-Laredo) exempts from tuition and fees children of volunteer law enforcement officers and firefighters that are disabled due to an injury sustained in the line of duty. HB 902 by Myra Crownover (R-Denton) and Craig Estes (R-`Vichita Falls) authorizes the board of regents of Texas Woman's University to charge a student fitness and recreational fee up to $125 per regular semester or $62.50 per summer session to be used for financing, constructing, operating, maintaining, or improving a fitness or recreational facility or for operating a fitness or recreational program. HB 1187 by Geanie Morrison (R-Victoria) and Leticia Van de Putte (D-San Antonio) requires the Texas Veterans Commission to establish a program to issue vouchers for tuition and fees at institutions of higher education to students in grades 6 through 12 or at postsecondary educational institutions to who sound "Taps" on a bugle, trumpet, or cornet during military honors funerals held in Texas for deceased veterans. The voucher equals $25 for each time the student sounds "Taps." HB 1250 by Charlie Howard (R-Sugar Land) and Dan Patrick (R-Houston) allows students to qualify for TEXAS grant or a Texas B-On-Time loan if they graduate from a private high school under the recommended or advanced high school program or its equiva ent. HB 1330 by Fred Brown (R-College Station) and Steve Ogden (R-Bryan) extends the pilot program providing for reduced undergraduate tuition for the summer term at Texas A&M University from August 31, 2007 to August 31, 2009. A student is limited to one reduction for one summer term. HB 1418 by Lois Kolkhorst (R-Brenham) and Steve Ogden (R-Bryan) prohibits the board of Sam Houston State University from changing the name of the university. HB 1427 by Roberto Alonzo (D-Dallas) and Judith Zaffirini (D-Laredo) authorizes the University of Houston to operate an optometry career summer program that prepares highly qualified, economically and academically disadvantaged junior-level, senior-level, and postbaccalaureate students from any public or private institution of higher education for advanced studies in a career in the field of optometry. HB 1614 by Dan Gattis (R-Georgetown) and Steve Ogden (R-Bryan) authorizes the establishment of a columbarium on the campus of a private or independent institution of higher education, that is wholly or substantially controlled, managed, owned, or supported by or affiliated with an organized religious society or sect if a place of worship is located on the campus. HB 2074 by Mike Krusee (R-Round Rock) and Steve Ogden (R-Bryan) authorizes the Temple Junior College District in conjunction with the East Williamson County Multi- Institution Teaching Center, Tarleton State University, Tarleton State University System Center -Central Texas; Texas State Technical College -Waco, or another public or private institution of higher education to provide coordinated higher education opportunities to the residents of the region in which the center is located by offering academic credit courses and programs from the member institutions of the center. The center will be administered under a formal agreement entered into by the Temple Junior College District and with the other member institutions. HB 2103 by Lois Kolkhorst (R-Brenham) and Steve Ogden (R-Bryan) requires the Texas Higher Education Coordinating Board to establish a pilot program to provide assistance in the repayment of student loans for full-time correctional officers who successfully complete a baccalaureate degree program at Sam Houston State University. HB 2173 by Byron Cook (R-Corsicana) and Kim Brimer (R-Fort Worth) is the sunset bill for the Prepaid Higher Education Tuition Board. It continues the agency until 2019. HB 2198 by Kino Flores (D-Mission) and Kyle Janek (R-Houston) requires the Texas Higher Education Coordinating Board to authorize baccalaureate degree programs at each of the public j unior colleges that previously participated in a pilot proj ect to offer baccalaureate degree programs. HB 2371 by Geanie Morrison (R-Victoria) and Judith Zaffirini (D-Laredo) authorizes the Texas Workforce Commission to set a hearing on whether to issue a cease and desist order against a person operating a career school or college without proper authority whether or not the person responds to a written notice from the commission. HB 2702 by Vicki Truitt (R-Southlake) and Florence Shapiro (R-Plano) excludes from the tuition exemption for former foster children who are adopted students whose adoption was an international adoption. It also exempts from tuition and fees foster children who are adopted. It requires the Department of Family and Protective Services to pay $150 per month for health benefits for those adopted children who are not eligible for Medicaid if the adoptive family's income is less than 300% of the federal poverty level. HB 2978 by Geanie Morrison (R-Victoria) and Florence Shapiro (R-Plano) requires the Texas Higher Education Coordinating board to establish aone-week summer program at each institution of higher education that offers an engineering degree program for middle and high school students to expose them to math, science, and engineering concepts. The board would also be required to establish a scholarship program for students pursuing a degree in engineering. It also requires the board to establish and administer a scholarship program for students pursuing a degree in engineering. To qualify for the scholarship, the student must have graduated with a grade point average in the top 20% of the student's high school graduating class; have graduated from high school with a grade point average of at least 3.5 in mathematics and science courses offered under the recommended or advanced high school curriculum; and maintain an overall grade point average of at least 3.0 at the university in which the student is enrolled. HB 3114 by David Swinford (R-Dumas) and Judith Zaffirini (D-Laredo) establishes at student fee advisory committee at the component institutions of the Texas A&M University System to advise the governing board and administration of the institution on the type, amount, and expenditure of compulsory fees for student services. It authorizes the Board of Regents of the Texas A&M University System to charge students at a component institution a recreational sports fee not to exceed $175 per regular semester and $87.5 for each summer session term. The board is authorized to impose an intercollegiate athletics fee on each student enrolled at Texas A&M International University, West Texas A&M University, and Texas A&M University -Commerce of up to $5 per semester credit hour (subject to student voter approval). HB 3291 by John Otto (R-Dayton) and Kip Averitt (R-Waco) prohibits the governing board of an institution of higher education from entering into a contract with a person relating to a permanent improvement project at the institution unless the board is specifically authorized to enter into the contract by law or receives prior approval from the Texas Higher Education Coordinating Board. HB 3382 by Elliott Naishtat (D-Austin) and Carlos Uresti (D-San Antonio) requires a publisher or manufacturer of printed instructional material that is required by an institution of higher education to provide (upon request by the institution) computerized files based on the printed instructional material to assist the institution in producing special instructional material for blind and visually impaired students. HB 3564 by Drew Darby (R-San Angelo) and Robert Duncan (R-Lubbock) transfers Angelo State University to the Texas Tech University System. HB 3827 by Geanie Morrison (R-Victoria) and Judith Zaffirini (D-Laredo) provides that the governing board of a junior college district that holds an open or closed meeting by telephone conference call would only be held if a quorum of the governing board is physically present at the location where the meetings of the board are usually held, it is audible to the public at that location; and tape recorded. The conference call meeting is subj ect to the applicable notice requirements for other meetings. HB 3851 by Geanie Morrison (R-Victoria) and Florence Shapiro (R-Plano) requires the Texas Higher Education Coordinating Board to establish a standard method for computing a student's high school grade point average. It must be based on a four- point scale and must assign additional weight for each honors course, advanced placement course, international baccalaureate course, or dual credit course completed by the student. HB 3900 by Geanie Morrison (R-Victoria) and Florence Shapiro (R-Plano) institutes the Texas Tomorrow Fund II as a prepaid tuition program. An investment in TTF-II would be made by purchasing units, each worth 1 % of one year of tuition and fees. There are three types ofunits -Type 1 is for tuition and fees at the highest priced public university; Type 2 is for tuition and fees at a university at the weighted average (for the student attending amid-priced institution); and Type 3 is for tuition and fees at a community college. When students redeem units, universities must honor their value. A beneficiary may redeem, after the third anniversary of the date of purchase, any type of tuition unit for attendance at a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, or accredited out-of state institution of higher education. HJR 103 by Drew Darby (R-San Angelo) and Robert Duncan (R-Lubbock) proposes a constitutional amendment transferring Angelo State University to the Texas Tech University System and authorizing the continuation of the constitutional appropriation for facilities at the university. SB 276 by Jeff Wentworth (R-San Antonio) and Patrick Rose (D-Dripping Springs) modifies the selection process for student members of the board of regents of a university or university system. It requires a student regent to maintain a grade point average of at least 2.5 throughout the student regent's term. It allows student regents to receive reimbursement for actual expenses incurred in attend meetings of the board. SB 309 by Leticia Van de Putte (D-San Antonio) and Juan Garcia (D-Corpus Christi) requires career schools to adopt a refund policy for students called to active military duty. SB 457 by Kirk Watson (D-Austin) and Jose Menendez (D-San Antonio) extends tuition and fee exemptions to surviving minor children of public employees killed in the line of duty regardless of whether the child was claimed as a dependent on the income tax return in the year preceding the year in which the individual died. SB 469 by Kim Brimer (R-Fort Worth) and Diane Patrick (R-Arlington) requires the Coordinating Board to design and produce a certificate of recognition for presentation by an institution of higher education to a person who contributes a gift or donation of at least $10,000 to an institution of higher education. SB 480 by Kyle Janek (R-Houston) and Dan Gattis (R-Georgetown) includes institutions accredited by the American Bar Association to the definition of "private or independent institutions of higher education." SB 649 by Eliot Shapleigh (D-El Paso) and Geanie Morrison (R-Victoria) authorizes the Texas Higher Education Coordinating Board to conduct a study to determine whether institutions of higher education, including component institutions of different university systems, to effectively enter into joint partnership agreements to develop joint degree programs and j Dint research programs; make j Dint appointments of faculty or other personnel to the partnership and to either or both institutions; and maintain joint facilities to conduct j Dint programs. SB 685 by Leticia Van de Putte (D-San Antonio) and Rick Noriega (D-Houston) grants members of the Texas National Guard assistance with tuition and fees at institutions of higher education (rather than just giving them assistance with tuition). SB 947 by Robert Duncan (R-Lubbock) and Warren Chisum (R-Pampa) dedicates $800,000 (rather than $400,000) from the unclaimed property fund to the rural scholarship fund. SB 1007 by Royce West (D-Houston) and Helen Giddings (D-Desoto) allows student representatives to serve on the Texas Higher Education Coordinating Board and the board's advisory committees. SB 1046 by Jeff Wentworth (R-San Antonio) and Geanie Morrison (R-Victoria) requires notice of meetings of the Texas Higher Education Coordinating Board to be provided at least seven (rather than 30) days prior to the meeting and allows them to hold the meeting via telephone conference call. SB 1050 by Judith Zaffirini (D-Laredo) and Diane Patrick (R-Arlington) requires the Texas Higher Education Coordinating Board to develop a standard contract establishing the roles and responsibilities of participating entities to be used as a model for a memorandum of understanding for awork-study student mentorship program under which students who are enrolled in their junior or senior years at participating eligible institutions who meet the eligibility requirements for employment in the Texas college work-study program to be employed to mentor students. SB 1051 by Judith Zaffirini (D-Laredo) and Ryan Guillen (D-Rio Grande City) allows the governing board of a general academic teaching institution that offers a joint baccalaureate degree program under contract with a foreign college or university to exempt a student enrolled in the j Dint degree program from the government and political science and American and Texas history requirements if the student successfully completes the American Way course. SB 1053 by Judith Zaffirini (D-Laredo) and Jimmie Don Aycock (R-Killeen) requires the Texas Higher Education Coordinating Board to establish a method for assessing the quality and effectiveness of academic advising services available to students at each institution of higher education. SB 1231 by Judith Zaffirini (D-Laredo) and Geanie Morrison (R-Victoria) requires institutions of higher education to refund tuition and fees at 100% or a portion depending on when the student withdraws. The governing board of an institution of higher education is authorized to adopt a policy relating to the maximum number of courses a student is permitted to drop. The Texas Higher Education Coordinating Board may permit a student to drop additional classes upon the showing of a severe illness or other debilitating condition that affects the student's ability to satisfactorily complete a course; the student's responsibility for the care of a sick, injured, or needy person if the care affects the student's ability to satisfactorily complete a course; the death of a family member; or because of active duty in the Texas National Guard or the armed services. SB 1232 by Judith Zaffirini (D-Laredo) and Geanie Morrison (R-Victoria) authorizes institutions of higher education to accept payment for tuition and fees in flexible installment payments. SB 1233 by Judith Zaffirini (D-Laredo) and Geanie Morrison (R-Victoria) authorizes institutions of higher education to require a property deposit of up to $100 from each student to insure the institution against any losses, damages, and breakage for which the student is responsible and to cover any other amounts owed by the student to the institution. The deposit, less applicable deductions must be refunded to the student within 180 days. SB 1234 by Judith Zaffirini (D-Laredo) and Patrick Rose (D-Dripping Springs) requires the Texas Higher Education Coordinating Board to develop a master plan for higher education for a period of years determined by the board to ensure that students enrolled at institutions of higher education are sufficiently prepared to meet the challenges associated with participation in the public affairs of the state and the global economy. SB 1325 by Royce West (D-Dallas) and Brian McCall (R-Plano) prohibits a student who is related to a current member of the governing board of an institution of higher education from receiving a scholarship from the institution unless the scholarship is from a private organization or third party not affiliated with the institution; the scholarship is awarded exclusively on the basis of prior academic merit; is an athletic scholarship; or the person is not within a third degree by consanguinity or the second degree by affinity. SB 1417 by Juan "Choy" Hinojosa (D-McAllen) and Solomon Ortiz, Jr. (D-Corpus Christi) authorizes the board of regents of the Texas A&M University System to impose a student endowment fee of up to $1 per semester credit hour on students at Texas ABM University-Corpus Christi if approved by a vote of the students. SB 1446 by Robert Duncan (R-Lubbock) and Brian McCall (R-Plano) removes indirect cost recovery fees from the list of items that must be accounted for as educational and general funds by institutions of higher education. SB 1640 by Tommy Williams (R-The Woodlands) and Warren Chisum (R-Pampa) authorizes the issuance of $500 million in bonds for student loan programs administered by the Texas Higher Education Coordinating Board. SJR 57 by Tommy Williams (R-The Woodlands) and Warren Chisum (R-Pampa) proposes a constitutional amendment authorizing an additional $500 million in general obligation bonds to finance educational loans. GENERAL BUSINESS HB 89 by Dan Branch (R-Dallas) and Chris Harris (R-Arlington) authorizes the Texas Ethics Commission to not impose a civil penalty for failure to file or a late filing on a general-purpose political committee if a report filed by that committee discloses that the committee did not accept political contributions totaling $3,000 or more, accept political contributions from a single person totaling $1,00 or more or make or authorize political expenditures totaling $2,000 or more during the reporting period or either of the two reporting periods. HB 2278 by Joe Deshotel (D-Beaumont) and Kim Brimer (R-Fort Worth) is a non- substantive recodification of statutes relating to business and commerce. HB 2492 by Leo Berman (R-Tyler) and Tommy Williams (R-The Woodlands) amends the Election Code to include corporations that are organized under the Texas For-Profit Corporation Law in the prohibition on corporate political contributions. HB 3093 by Charlie Howard (R-Sugar Land) and Kyle Janek (R-Houston) allows a business to require a customer who purchases a good or service from the business using a credit card to provide the customer's zip code to verify the customer's identity. The business is allowed to electronically verify with the credit card issuer that the zip code matches the zip code that the credit card issuer has on file. HB 3584 by Aaron Pena (D-Edinburg) and Leticia Van de Putte (D-San Antonio) creates the offense of organized retail theft and provides that a person commits an offense if the person intentionally conducts, promotes, or facilitates an activity in which the person receives, possesses, conceals, stores, barters, sells, or disposes of not less than $1,500 of stolen retail merchandise or merchandise explicitly represented to the personas being stolen retail merchandise. An offense is a state j ail felony if the total value of the merchandise is between $1,500 and $20,000; a third degree felony if the value of the merchandise is between $20,000 and $100,000; a second degree felony if the total value of the merchandise is between $100,000 and $200,000; or a first degree felony if the value of the merchandise is more than $200,000. SB 247 by Rodney Ellis (D-Houston) and Corbin Van Arsdale (R-Houston) prohibits the investment of state funds in any private business entity doing business in Sudan. SB 332 by John Carona (R-Dallas) and Joe Driver (R-Garland) prohibits an employer from permitting a person to drive a commercial motor vehicle during a period in which the employer is subj ect to an out-of service order that affects the driver or the vehicle. An offense is a Class B misdemeanor. SB 333 by John Carona (R-Dallas) and Joe Driver (R-Garland) provides that a person commits an offense if the person drives a commercial motor vehicle on a highway in violation of an out-of service order. SB 548 by John Carona (R-Dallas) and Mike "Tuffy" Hamilton (R-Mauriceville) allows the holder of a dishonored check to notify the issuer of intent to prosecute by first-class mail, with delivery evidenced by an affidavit of service or registered or certified mail with return receipt requested (telegram option is deleted). It requires the issuer of a dishonored check to reimburse the holder of a dishonored check for the cost of sending notice of intent to prosecute by registered or certified mail with return receipt requested. SB 949 by Glenn Hegar (R-Katy) and Stephen Frost (D-Atlanta) prohibits political subdivisions from requiring a private business to contract with or employ a peace officer to provide security services for the business except to provide security services for a public event, provide security services for a private event held at a public facility owned by the political subdivision; to conduct a public escort, to direct traffic on a public roadway, or upon determination by a court. SB 1389 by Leticia Van de Putte (D-San Antonio) and Scott Hochberg (D-Houston) requires a person, manufacturer or retailer offering a rebate over $10 to mail the amount of the rebate to the consumer or electronically pay within the time period promised in the rebate information, or if silent, not later than the 30th day after the date they receive the properly completed rebate request. It requires a company to either process incomplete rebate requests or notify the consumer in writing by mail ore-mail (if the consumer has agreed to be notified by e-mail) of errors or missing paperwork and allow the consumer 30 days to correct and resubmit without penalty. The person offering the rebate has the right to rej ect a rebate request if he/she determines the consumer is attempting to commit fraud; has already received the rebate; or is submitting proof of a purchase that is not legitimate. If a properly completed rebate request is erroneously rejected, the person offering the rebate is required to pay the consumer within 30 days of learning of the error. A violation of the law is subj ect to the Deceptive Trade Practices Act. SB 1729 by John Carona (R-Dallas) and Burt Solomons (R-Carrollton) clarifies the authority of the Texas Commission on Licensing and Regulation to revise versions of the American Society of Civil Engineers Code, the American Society of Mechanical Engineers, related to elevator safety. It authorizes the executive director of the commission to grant a variance, on an application of a person to allow the installation of new technology if it is equivalent or superior to standards adopted by the commission HEALTH HB 14 by Jim Keffer (R-Eastland) and Jane Nelson (R-Lewisville) is the enabling bill for HJR 90. It creates the Cancer Prevention and Research Institute of Texas to create and expedite innovation in the area of cancer research and in enhancing the potential for a medical or scientific breakthrough in the prevention of cancer and cures for cancer; attract, create, or expand research capabilities of public or private institutions of higher education and other public or private entities that will promote a substantial increase in cancer research and in the creation ofhigh-quality new jobs in the state; and develop and implement the Texas Cancer Plano. HB 92 by Dan Branch (R-Dallas) and Jane Nelson (R-Lewisville) requires automated external defibrillators to be approved by the U.S. Food and Drug Administration for over-the-counter sale or acquired from a licensed practitioner or upon a prescription. HB 522 by Beverly Woolley (R-Houston) and Kyle Janek (R-Houston) requires the Commissioner of Insurance to appoint a Technical Advisory Committee on Electronic Data Exchange to advise the commissioner on technical aspects of using the transaction standards and data elements required to be made available by health benefit plan issuers and administrators. To the extent possible, the committee is required to use the framework adopted by the Council for Affordable Quality Healthcare Committee on Operating Rules for Information Exchange. It requires the commissioner to designate a county or counties for initial participation in an identification card pilot program. Health benefit plans that offer coverage in the county/counties selected for the pilot are required to issue identification cards to each enrollee. HB 948 by Yvonne Davis (D-Dallas) and Rodney Ellis (D-Houston) requires the label of a drug to be in plain language and printed in an easily readable font size for the consumer. The Board of Pharmacy is required to adopt rules specifying the information a pharmacist must provide to a consumer when dispensing a prescription to the consumer for self administration. The information must be written in plain language; relevant to the prescription; and printed in an easily readable font size. HB 1066 by Dianne White Delisi (R-Temple) and Jane Nelson (R-Lewisville) creates the Texas Health Services Authority Corporation to implement the state-level health information technology functions identified by the Texas Health Information Technology Advisory Committee by serving as a catalyst for the development of a seamless electronic health information infrastructure to support the health care system in the state and to improve patient safety and quality of care. The authority is established to promote, implement, and facilitate the voluntary and secure electronic exchange of health information and create incentives to promote, implement, and facilitate the voluntary and secure electronic exchange of health information. HB 1082 by Joe Straus (R-San Antonio) and Leticia Van de Putte (D-San Antonio) requires the Executive Commission of the Department of Health and Human Services to establish a pilot program to research and implement procedures for reporting cases of methicillin-resistent staphylococcus aureus. HB 1370 by Garnet Coleman (D-Houston) and Judith Zaffirini (D-Laredo) changes the makeup of the Interagency Coordinating Council for HIV and Hepatitis and requires them to develop a plan that facilitates coordination of agency programs based on statistical information regarding the State of Texas prevention of AIDS, HIV infection, and hepatitis and provision of services to individuals who have hepatitis or are infected with HIV. They are required to identify all statewide plans related to AIDS, HIV, and hepatitis and compile a complete inventory of all federal, state, and local money spent in the state on HIV infection, AIDS, and hepatitis prevention and health care services, including services provided through or covered under Medicaid and Medicare. HB 1373 by Ryan Guillan (D-Rio Grande City) and Judith Zaffirini (D-Laredo) is the Glenda Dawson Act. It creates the Chronic Kidney Disease Task Force administered by the Department of State Health Services to develop a plan to educate health care professionals about the advantages and methods of early screening, diagnosis, and treatment of chronic kidney disease and complications related to chronic kidney disease based on the Kidney Disease Outcomes Quality Initiative Clinical Practice Guidelines for Chronic Kidney Disease or other medically recognized clinical practice guidelines; develop a plan to educate health care professionals and individuals with chronic kidney disease about the advantages ofend-stage renal disease modality education and early renal replacement therapy, including in-center dialysis, home hemodialysis, peritoneal dialysis as well as other options, and transplantation, before the onset ofend-stage renal disease when kidney function is declining; and make recommendations on the implementation of acost-effective plan for early screening, diagnosis, and treatment of chronic kidney disease for the state's population. HB 1379 by Joe Deshotel (D-Beaumont) and Jane Nelson (R-Lewisville) directs the Texas Department of State Health Services to use existing resources to produce and distribute informational materials about approved HPV vaccines including the effectiveness, availability and contraindications. The materials must be available in English and Spanish. HB 1396 by Dawnna Dukes (D-Austin) and Judith Zaffirini (D-Laredo) changes the Office of Minority Health to the Office for the Elimination of Health Disparities and charge them to develop health initiatives to decrease or eliminate health and health access disparities among racial, multicultural, disadvantaged, ethnic, and regional populations. HB 1449 by Dwayne Bohac (R-Houston) Bob Deuell (R-Greenville) designates November as Cancer Awareness Month. HB 1594 by John Zerwas (R-Fulshear) and John Carona (R-Dallas) allows expedited credentialing for a physician who j oins an established medical group that has a current contract in force with a managed care plan. HB 1676 by Dianne white Delisi (R-Temple) and Leticia Van de Putte (D-San Antonio) requires the office of the attorney general to develop a public awareness campaign to educate consumers concerning solicitations for the sale of prescription drugs that are made using electronic mail or the Internet. The public awareness campaign must emphasize the existence of reputable pharmacies and pharmacists that provide services through the Internet and must provide information to assist a consumer in distinguishing a reputable pharmacy or pharmacist from a seller that maybe unlicensed or fraudulent. HB 1919 by Todd Smith (R-Bedford) and Leticia Van de Putte (D-San Antonio) institutes a mandated benefit for treatment of an acquired brain injury including outpatient day treatment services or other analogous post-acute care treatment services. It would prohibit health benefit plans from including any lifetime limitation on the number of days of acute care treatment covered. It prohibits exclusion of coverage in a small employer health benefit plan for cognitive rehabilitation therapy, cognitive communication therapy, neurocognitive therapy and rehabilitation, neurobehavioral, neurophysiological, neuropsychological, or phychophysiological testing or treatment, neurofeedback therapy, remediation, post-acute transition services, or community reintegration services necessary as a result of and related to an acquired brain injury. It also institutes a mandated benefit for autism spectrum disorder to enrollees between two and six years old. HB 1973 by Dianne white Delisi (R-Temple) and Jane Nelson (R-Lewisville) prohibits a member of the Texas Medical Board from serving as an expert witness in a suit involving a health care liability claim against a physician for injury to or death of a patient. It requires the board to perform a needs assessment to determine the performance goals that the board must meet to reduce any unreasonable delays in the timely completion of the physician licensing process and to ensure the process is completed in a reasonable number of days. HB 1977 by Larry Taylor (R-League City) and Kip Averitt (R-warn) exempts the Texas Health Insurance Risk Pool from state taxes, regulatory fees, surcharges, and premium or maintenance taxes or fees. It requires the Commissioner of Insurance to conduct a study concerning a program under which the pool would offer coverage to an individual who is also covered under a group health benefit plan that is provided or offered to the individual through an employer with pool coverage being secondary. HB 2015 by John Smithee (R-Amarillo) and Robert Duncan (R-Lubbock) requires health benefit plan issuers to provide a written report of claim information within 3 o days of a written request from a plan sponsor or plan administrator (but no more than twice in a 12- mont perio ). HB 2132 by Joe Straus, III (R-San Antonio) and Leticia Van de Putte (D-San Antonio) requires the Department of State Health Services to develop and implement a pilot program to create and maintain a diabetes mellitus registry. HB 2252 by Larry Taylor (R-League City) and Tommy Williams (R-The Woodlands) provides that it is not considered discrimination or inducement to provide policyholders, in addition to benefits under the terms of the insurance contract, health-related services orhealth-related information, or to disclose the availability of those additional services and information to prospective policy or certificate holders. It authorizes health insurers to establish premium discounts, rebates, or a reduction in otherwise applicable copayments, coinsurance, or deductibles, or any combination of these incentives, for an insured who participates in programs promoting disease prevention, wellness, and health. HB 2313 by Patrick Rose (D-Dripping Springs) and Robert Nichols (R-Jacksonville) designate the second full week in September as obesity awareness week to raise awareness of the health risks associated with obesity and to encourage Texans to achieve and maintain a healthy lifestyle. HB 2467 by Burt Solomons (R-Carrollton) and Leticia Van de Putte (D-San Antonio) allows an insurer to modify a small or large employer health benefit plan if the modification occurs at the time of coverage renewal; the modification is effective uniformly among all small or large employers covered by that health benefit plan; and the issuer notifies the Commissioner of Insurance and each affected covered small or large employer at least 6o days before the modification takes effect. HB 2827 by Larry Taylor (R-League City) and Mike Jackson (R-Pasadena) requires emergency medical services vehicles to be equipped with an epinephrine injector or similar device to treat anaphylaxis. A licensed physician acting as a medical director for an emergency medical services system is authorized to restrict the use of the administration of epinephrine auto-injector devices. Emergency medical services personnel are required to complete continuing education training in the administration of anaphylaxis treatment. HB 3064 by Dianne Delisi (R-Temple) and Jane Nelson (R-Lewisville) prohibits advertising and marketing material of a discount health care program from containing false, misleading, or deceptive statements including statements that misrepresent the price range of discounts offered by the discount health care program; misrepresent the size or location of the program's network of providers; knowingly misrepresent the participation of a provider in the program's network, or suggest that a discount card offered through the program is a federally approved Medicare prescription discount card. Any advertisement, solicitation, and marketing material of a discount health care program must clearly state that the discount health care program is not insurance. It also institutes licensing and regulation for discount health care programs. HB 3184 by Garnet Coleman (D-Houston) and Bob Deuell (R-Greenville) requires the Department of State Health Services to increase immunization awareness and participation among parents of children in child-care facilities in the state's early childhood vaccination program by publishing information on its web site to educate parents of children in day care facilities about the benefits of annual vaccinations against influenza for children six months to 50 months of age. The executive commissioner of the Health and Human Services Commission is required to study the wholesale distribution of influenza vaccine in the state to determine feasibility of implementing a system that requires giving a priority in filling influenza vaccine orders to physicians and other licensed health care providers authorized to administer the vaccines. HB 3735 by Jim McReynolds (D-Lufkin) and Robert Nichols (R-Jacksonville) requires the Department of State Health Services and the Texas Diabetes Council to assist in the establishment of a diabetes demonstration pilot program at the Memorial Health System of East Texas to provide a comprehensive approach to promoting the prevention and treatment of ancanthosis nigricans and diabetes. HJR 90 by Jim Keffer (R-Eastland) and Jane Nelson (R-Lewisville) proposes a constitutional amendment establishing the Cancer Research Institute of Texas to make grants and loans to institutions of learning and to advanced medical research facilities and collaborations and to support institutions of learning and advanced medical research facilities and collaborations in all stages in the process of finding the causes of all types of cancer in humans. It also authorizes the issuance of bonds of up to $3 billion. SB 10 by Jane Nelson (R-Lewisville) and Dianne White Delisi (R-Temple) is an omnibus Medicaid reform bill. It: • Rewards Medicaid patients who complete smoking cessation, weight loss and other preventative health programs; • Encourages Medicaid managed care plans to enroll patients in "value-added" preventative health services; • Creates customized benefit plans that are tailored to a patient's individual care needs; • Creates a pilot program for Health Savings Accounts under Medicaid; • Expands the effort to assist with the cost of premiums for those who are Medicaid-eligible but have access to employer-based plans; • Expands efforts to stop fraud and abuse; • Authorizes co-pays for non-emergency visits to hospital emergency rooms, providing that there are alternative health care options available; • Standardizes the way hospitals report uncompensated care to eliminate guesswork involved in the state's cost proj ections; • Evaluates possible expansion of integrated care management to areas where it is currently unavailable; • Develop a model in which regional partnerships can be created to allow the state, employers and local governments or charitable entities to join together in efforts to connect Texans with health coverage; • Creates a committee to recommend incentives for more employers to offer health an ong-term care insurance; • Establishes a low income funding pool that can be used to set aside a portion of federal uncompensated care dollars to connect low-income families with private health care; • Expands access to breast and cervical cancer screenings and treatment for women under Medicaid; • Extends Medical services to former foster children who are enrolled in higher education up to age 23; • Allows the Health and Human Services Commission to implement health information technology for the medical assistance program and allows a health information technology pilot program for Medicaid providers; • Directs a study into ways to increase the number of medical residency programs in Texas; and • Maintains the Medicaid Reform Legislative Oversight Committee. SB 27 by Jane Nelson (R-Lewisville) and Dianne White Delisi (R-Temple) requires the Department of Aging and Disability Services to contract with local mental retardation authorities to implement the community living options information process. The department is required to develop an effective community living options information process; create uniform procedures for the implementation of the community living options information process and minimize any potential conflict of interest regarding the community living options information process between a state school and an adult resident, an adult resident's legally authorized representative, or a local mental retardation authority. SB 29 by Jane Nelson (R-Lewisville) and Vicki Truitt (R-Southlake) requires the Department of Information Resources, through TexasOnline and in consultation with the Statewide Health Coordinating Council and the Health Professions Council to collect information on each health professional including the full name and last four digits of social security number; full mailing address; date and place of birth; sex; race and ethnicity; description of primary practice setting; primary practice information; information regarding any additional practice, including description of practice setting, practice location zip code, and county; and educational background and training. SB 91 by Leticia Van de Putte (D-San Antonio) and Bill Zeller (R-Arlington) adds language to the required sign posted at establishments that sell tobacco products, "Pregnant women should not smoke. Smokers are more likely to have babies who are born premature or with low birth weight." SB 138 by Jane Nelson (R-Lewisville) and Susan King (R-Abilene) requires the coordinating board to develop methods to promote the retention and graduation of students enrolled in a professional nursing program and to implement those methods including recommendations on financial aid. SB 139 by Jane Nelson (R-Lewisville) and Lois Kilkhorst (R-Brenham) requires the Coordinating Board in consultation with the Board of Nurse Examiners, to conduct a study to identify methods to improve the curricula of professional and vocational nursing programs. The study must focus on methods to improve instruction on providing safe and high-quality nursing care to patients. SB 140 by Jane Nelson (R-Lewisville) and Lois Kolkhorst (R-Brenham) requires the Department of State Health Services and the Texas Higher Education Coordinating Board to conduct a j oint study of the feasibility of providing immunizations without charge or at a discount to economically disadvantaged students enrolled in health professional degree programs at institutions of higher education. SB 141 by Jane Nelson (R-Lewisville) and Geanie Morrison (R-Victoria) allows the Coordinating Board, in consultation with the administrative head of each agency that is a member of or represented on the Health Professions Council to conduct a study to evaluate the feasibility of institutions of higher education providing courses in which students enrolled in different health science or health profession education programs may enroll to study basic health science curricula together. SB 143 by Royce West (D-Dallas) and Marc Veasey (D-Fort Worth) authorizes the establishment of fetal and infant mortality review teams by local health authorities to examine fetal and infant death instances. It also modifies the sign required to be posted by sellers of tobacco products warning that sales to minors are prohibited by law and health warnings for pregnant women. SB 156 by Florence Shaprio (R-Plano) and Jerry Madden (R-Plano) requires the Health and Human Services Commission to establish anurse-family partnership competitive grant program to award grants for the implementation ofnurse-family partnership programs, or the expansion of existing programs, and for the operation of those programs for at least two years. SB 201 by Jane Nelson (R-Lewisville) and Geanie Morrison (R-Victoria) expands the $500 tuition credit for registered nurses who serve as a clinical preceptor for one additional semester for each semester served and extend the same $500 credit for the children of qualifying clinical preceptors. SB 204 by Jane Nelson (R-Lewisville) and Dianne White Delisi (R-Temple) requires medical records software systems sold to a person who administers immunizations to interface with the state's immunization system and generate electronic reports that contain the fields necessary to populate the immunization registry. SB 288 by Jane Nelson (R-Lewisville) and Dianne White Delisi (R-Temple) requires the Department of State Health Services to establish the Texas Health Care-Associated Infection Reporting System to provide for the reporting of health care-associated infections by health care facilities and the education and training of health care facility staff. It establishes the Advisory Panel on Health Care-Associated Infections to guide the implementation, development, and maintenance and evaluation of a reporting system for reporting prevalence of acquired infections at Texas' hospitals and other health care facilities. SB 289 by Jane Nelson (R-Lewisville) and Geanie Morrison (R-Victoria) authorizes the use of professional nursing shortage reduction program grants to encourage clinical nursing instruction bypart-time faculty at public or private institutions of higher e ucatlon. SB 415 by Eddie Lucio, Jr. (D-Brownsville) and Jim McReynolds (D-Lufkin) requires the University ofTexas-Pan American Border Health Office to administer a risk assessment program for Type 2 diabetes. SB 556 by Eddie Lucio, Jr. (D-Brownsville) and Jim McReynolds (D-Lufkin) creates the State Obesity Council composed of the Commissioners of Agriculture, State Health Services and Education or their designees to discuss the status of each agency's programs that promote better health and nutrition and prevent obesity among children and adults and consider the feasibility of tax incentives for employers who promote activities designed to reduce obesity in the workforce. SB 625 by Kyle Janek (R-Houston) and John Davis (R-Houston) allows the Texas Medical Board to establish a joint committee to recommend to the board a list of narrow therapeutic index drugs. It prohibits a pharmacist from interchanging a drug for immunosuppressive therapy following a transplant without prior consent to the interchange from the prescribing practitioner. SB 811 by Kyle Janek (R-Houston) and Dawnna Dukes (D-Austin) requires the Department of State Health Services to allow each health care provider participating in the vaccines for children program to select any influenza vaccine approved by the US Food and Drug Administration, recommended by the federal Advisory Committee on Immunization practices; and made available under contract with the Centers for Disease Control. SB 943 by Kyle Janek (R-Houston) and Vicki Truitt (R-Southlake) requires licensing and regulation of wholesale distributors of prescription drugs. SB 992 by Jane Nelson (R-Lewisville) and Donna Howard (D-Austin) gives afour-year extension for the Texas Higher Education Coordinating Board to award permanent health funds for programs preparing students for licensure as registered nurses or programs preparing qualified faculty members with a master's or doctoral degree program. SB 994 by Jane Nelson (R-Lewisville) and Dianne white Delisi (R-Temple) authorizes prescriptions for controlled substances to be communicated electronically, telephonically, or orally to a pharmacist. SB 1254 by Kip Averitt (R-Waco) and Larry Taylor (R-League City) makes changes to the Texas Health Insurance Risk Pool to conform to other state and federal laws. SB 1255 by Kip Averitt (R-Waco) and Larry Taylor (R-League City) authorizes a health group cooperative to consist of small employers and at the option of the health group cooperative consist of both small and large employers. Membership in a health group cooperative is allowed to be restricted to small and large employers within a single industry. A health croup cooperative that is composed of small and large employers is considered a single employer. SB 1274 by Leticia Van de Putte (D-San Antonio) and Chuck Hopson (D-Jacksonville) authorizes the Board of Pharmacy to adopt rules governing the procedures for a pharmacist, as part of compounding, to add flavoring to a commercial product at the request of a patient. SB 1391 by Carlos Uresti (D-San Antonio) and Todd Smith (R-Bedford) prohibits a health benefit plan issuer from issuing or offering for sale a health benefit plan that requires an enrollee to travel to a foreign country to receive a particular health care service under the plan or a discount on the amount an enrollee must pay to receive a particular health care service. SB 1500 by Judith Zaffirini (D-Laredo) and Jodie Laubenberg (R-Wylie) designates the Donor Education, Awareness, and Registry Program of Texas as the Glenda Dawson Donate Life-Texas Registry. SB 1566 by Dan Patrick (R-Houston) and Jim Jackson (R-Carrollton) creates the Texas Bleeding Disorders Advisory Council to study and advise the Department of State Health Services, the Health and Human Services Commission, and the Department of Insurance on issues that affect the health and wellness of persons living with hemophilia and other bleeding or clotting disorders. SB 1658 by Robert Nichols (R-Jacksonville) and Chuck Hopson (D-Jacksonville) authorizes a pharmacist to dispense up to a 3o-day supply of a prescription drug other than a controlled substance in the event of a natural or manmade disaster without authorization of the prescribing practitioner if failure to refill the prescription might result in an interruption of a therapeutic regimen or create patient suffering; the natural or manmade disaster prohibits the pharmacist from being able to contact the practitioner; the governor has declared a state of disaster; and the Pharmacy Board notifies pharmacies that pharmacists my dispense up to a 3 o-day supply of a prescription drug. SB 1731 by Robert Duncan (R-Lubbock) and Carl Isett (R-Lubbock) makes several changes to improve transparency in health care including: • Establishes a Consumer Guide to Health Care website at the Department of State Health Services and at the Board of Medical Examiners; • Requires facilities to provide an estimate of charges for elective procedures; • Requires facilities to refund consumers within 3o days of an overpayment; • Expands state data collection to free standing imaging centers and out-patient data; • Authorizes approximately $1 million over the biennium to help fund data collection; • Requires physicians to develop and implement a written policy for billing services; • Provides consumer protections against the practice of balance billing; • Directs the Texas Department of Insurance to implement rules on network adequacy; and • Directs TDI to conduct the network adequacy study through the Network Adequacy Study Group. SB 1832 by Robert Duncan (R-Lubbock) and Dan Gattis (R-Georgetown) requires a person, physician or entity that does not directly supervise or perform anatomic pathology services to disclose in the bill to the patient or the insurer in an itemized statement the name and address of the physician or laboratory that provided the anatomic pathology services; and the net amount paid or to be paid for each anatomic pathology service provided to the patient by the physician of laboratory. SB 1896 by Eddie Lucio, Jr. (D-Brownsville) and Dianne white Delisi (R-Temple) authorizes pharmacists who practice as a consultant for a health care facility or a licensed health care professional responsible for administration of drugs in a penal institution to return to a pharmacy unused drugs other than controlled substances. (Current law allows pharmacists who practice as a consultant for a health care facility to return unused drugs.) HUMAN RESOURCES/EMPLOYMENT HB 550 by Dawnna Dukes (D-Austin) and Judith Zaffirini (D-Laredo) extends unemployment compensation benefits to victims of family violence and employees leaving the workplace to care for the employee's terminally ill spouse if no reasonable alternative care is available. HB 1205 by Jim Keffer (R-Eastland) and Kevin Eltife (R-Tyler) prohibits employment discrimination against an employee who is a volunteer emergency responder and who is absent from or late to the employee's employment because the employee is responding to an emergency in the employee's capacity as a volunteer emergency responder. The emergency responder is not entitled to be absent for more than 14 days in a calendar year without employer approval. Employers with fewer than 50 employees are exempt. Critical employees whose presence is required in order to continue the essential functions of the employer, the absence of which could cause substantial and grievous economic injury, severely compromise the ability of the employer to accomplish mission critical functions, or jeopardize the safety and well-being of others are exempt. Employers can reduce the wages or require the employee to use vacation time, personal leave, or compensatory leave for the time the employee took off. HB 1241 by Pat Haggerty (R-El Paso) and Mike Jackson (R-Pasadena) requires private businesses to maintain the criminal history record of the business's security department personnel on file at the business and make the record available for inspection by the Department of Public Safety. HB 1385 by Mike Villarreal (D-San Antonio) and Carlos Uresti (D-San Antonio) requires small employers (with 50 or less full-time employees) that operate an employer-based day-care facility to get a permit issued by the Department of Human Services. HB 2120 by Joe Deshotel (D-Beaumont) and Tommy Williams (R-The Woodlands) provides that wages received by an individual from employment by employers during the individual's base period (for unemployment compensation purposes) includes wages ordered to be paid to the individual by a final order of the Workforce Commission that were due to be paid to the individual by an employer during the individual's base period and credited to the date on which the payment of those wages was due. SB 311 by Leticia Van de Putte (D-San Antonio) and Rick Noriega (D-Houston) prohibits a private employer from terminating the employment of a permanent employee who is a member of Texas state military forces or the national guard of Texas or another state. SB 679 by Tommy Williams (R-The Woodlands) and Beverly Woolley (R-Houston) requires surplus revenue in the unemployment compensation fund to be used to pay outstanding bond obligations or to provide a surplus credit to an employer entitled to an experience rate on the computation date. SB 1619 by Eddie Lucio, Jr. (D-Brownsville) and Geanie Morrison (R-Victoria) requires the Texas Workforce Commission to establish and enforce reasonable rules governing the confidentiality, custody, use, preservation and disclosure of unemployment compensation information. The rules must include safeguards to protect the confidentiality of identifying information regarding any individual or any past or present employer or employing unit contained in unemployment compensation information, including any information that foreseeably could be combined with other publicly available information to reveal identifying information regarding the individual, employer, or employing unit. INTERNET HB 2559 by John Otto (R-Dayton) and Jeff Wentworth (R-San Antonio) authorizes car dealers to sell or offer to sell a motor vehicle online via the Internet to a buyer who never personally appears at the dealer's established and permanent place of business. HB 3171 by David Swinford (R-Dumas) and Jeff Wentworth (R-San Antonio) requires the Texas Education Agency to develop and make available to school districts a list of resources concerning Internet safety, including a list of organizations and Internet websites to assist teachers and students about the potential dangers of allowing personal information to appear on an Internet website; the significance of copyright laws; and the consequences of cyber-plagiarism and theft of audiovisual works, including motion pictures, software, and sound recordings, through uploading and downloading files on the Internet. HB 3430 by Mark Strama (D-Austin) and Glenn Hegar Jr. (R-Katy) requires the comptroller to establish and post on the Internet a database of state expenditures, including contracts and grants, that is electronically searchable by the public. The database must allow users to search and aggregate state funding by any element of the information; ascertain through a single search the total amount of state funding awarded to a person by a state agency; and download information yielded by a search of the database. The Department of Information Resources is required to put a link to the database on TexasOnline. It requires state agencies to prepare an economic impact statement that estimates the impact on small businesses of a proposed rule. It requires the Legislative Budget Board to post on the Internet information relating to state contracts that exceed $50,000. It requires the comptroller to report on the capital investment and job creation of contracts under the Texas Economic Development Act. It allows institutions of higher education to use money received from health insurance claims filed in connection with the institution's student health center to be used for the construction, improvement, operation, or maintenance of the student health center or to increase or enhance the services offered by the student health center. SB 136 by Jane Nelson (R-Lewisville) and Dan Branch (R-Dallas) requires Texas School Safety Center, in cooperation with the attorney general to develop a program that provides instruction concerning Internet safety, including instruction relating to the potential dangers of allowing personal information to appear on an Internet website; the manner in which to report to inappropriate online solicitation; and the prevention, detection, and reporting of bullying or threats occurring over the Internet. SB 611 by Eddie Lucio, Jr. (D-Brownsville) and Mando Martinez (D-Weslaco) requires the Texas Department of Insurance in conjunction with the Office of Public Insurance Counsel to establish and maintain an Internet website that provides information to enable consumers to make informed decisions relating to the purchase of residential property insurance and personal automobile insurance. SB 687 by Eliot Shapleigh (D-El Paso) and Burt Solomons (R-Carrollton) authorizes the Texas Department of Information Resources to include in TexasOnline a method by which a state agency or local government can track payments, including cash and credit card payments, received by the state agency or local government. It requires the Department of Information Resources to adopt standards for state agency Internet websites to ensure consistency and compatibility with the TexasOnline Project and would require all state agencies to make its Internet website conform to the standards. SB 711 by Eliot Shapleigh (D-El Paso) and Burt Solomons (R-Carrollton) requires TexasOnline, to the extent that resources are available, to include a consolidated business application portal through which businesses can apply and submit payment for original and renewal permits required by state agencies. SB 1083 by John Carona (R-Dallas) and Stephen Frost (D-Atlanta) authorizes a judge or justice of the peace to request and obtain a copy of a defendant's driving record from the Texas Department of Public Safety using TexasOnline. PRIVACY HB 455 by Eddie Rodriguez (D-Austin) and John Whitmire (D-Houston) prohibits disclosure of the home address, telephone number or social security number of an officer or employee of a community supervision and corrections department. HB 460 by Sid Miller (R-Stephenville) and Glenn Hegar, Jr. (R-Katy) prohibits a person from using or possessing identifying information of a deceased natural person, including a stillborn infant or fetus without legal authorization with the intent to harm or defraud. The penalty is a state jail felony if the number of times information was obtained, possessed, transferred, or used is less than five; a third degree felony if the number of times is between five and ten; a second degree felony if the number is between 10 and 50; or a first degree felony for 50 or more. HB 649 by Brian McCall (R-Plano) and John Carona (R-Dallas) prohibits a person from obtaining, possessing, transferring or using the identifying information of a child younger than 18 years of age with intent to harm or defraud. HB 863 by Byron Cook (R-Corsicana) and Rodney Ellis (D-Houston) allows accountants to request the social security number of their clients without adopting a privacy policy. HB 887 by Helen Giddings (D-Desoto) and Rodney Ellis (D-Houston) increases the statute of limitations for identity theft and credit card or debit card abuse to five years. HB 991 by Patrick Rose (D-Dripping Springs) and Bob Deuell (R-Greenville) prohibits the Department of Public Safety from disclosing the names of persons licensed to carry a concealed handgun except to a criminal justice agency. HB 1042 by Aaron Pena (D-Edinburg) and Glenn Hegar, Jr. (R-Katy) makes identifying information of crime victims or claimants confidential and not subject to disclosure under the Public Information Act. HB 1141 by Donna Howard (D-Austin) and Jeff Wentworth (R-San Antonio) makes confidential information from local tax appraisal records of an employee of a prosecutor's office or current or former peace officer or other office with jurisdiction over child protective services matters. HB 1237 by David Farabee (D-Wichita Falls) and Glenn Hegar, Jr. (R-Katy) prohibits from disclosure the home address, home telephone number, e-mail address, social security number, or date of birth of a person licensed to practice law upon request by the person, and the governmental body is notified of the attorney's choice. HB 2002 by Helen Giddings (D-Desoto) and Troy Fraser (R-Marble Falls) requires financial institutions to notify electronic check verification entities that a customer is a victim of identity theft. HB 2061 by Jim Keffer (R-Eastland) and Tommy Williams (R-The Woodlands) authorizes a county or district clerk to disclose a social security number contained in information held by the clerk's office in the ordinary course of business. The clerk is required to establish a procedure under which a social security number of a living person that is contained in information held by the clerk, including information available on an Internet website, would be redacted within a reasonable time by the clerk upon the individual's request. SB 74 by Eddie Lucio (D-Brownsville) and Ryan Guillen (D-Rio Grande City) requires the attorney general to create an address confidentiality program for victims of family violence. SB 123 by Bob Deuell (R-Greenville) and Thomas Latham (R-Sunnyvale) exempts from open records laws personal information of a child younger than 18 including the person's name, age, home address, telephone number, social security number, photograph, or the name of the child's guardian or family members if the information is held by a municipality relating to the participation by a minor in a recreational program Or actlvlty. SB 222 by Rodney Ellis (D-Houston) and Senfronia Thompson (D-Houston) deletes the requirement that a request to put a security freeze on a consumer's file maintained by a consumer reporting agency be accompanied by a copy of a valid police report, investigative report of registered complaint. It also exempts from security freeze requirements a consumer reporting agency that acts only to resell credit information by assembling and merging information contained in a database of another consumer reporting agency or multiple consumer reporting agencies and does not maintain a permanent database of credit information from which new consumer reports are produced. It authorizes a consumer reporting agency to impose a reasonable charge of up to $10 on a consumer for temporarily lifting a security freeze for a designated purpose or for removing a security freeze. SB 277 by Florence Shapiro (R-Plano) and Linda Harper Brown (R-Irving) prohibits the use of the name of an individual who is an active duty or former member of the United States Armed Forces, the reserves, or the state military forces, or a picture of the individual in uniform in an advertisement for a commercial purpose without consent. SB 606 by Steve Ogden (R-Bryan) and Dan Gattis (R-Georgetown) prohibits the disclosure of the name of a student or minor who is a victim of abuse or unlawful conduct by an educator. SB 699 by John Carona (R-Dallas) and Drew Darby (R-San Angelo) requires courts in civil cases to include in its initial pealing the last three numbers of the party's driver's license number and the last three numbers of the party's social security number. PROCUREMENT HB 66 by David Leibowitz (D-San Antonio) and Kirk Watson (D-Austin) requires the Department of Information Resources to select power management software to be used by state agencies to reduce the amount of energy required to operate state computer networks and networked personal computers. HB 119 by Fred Brown (R-College Station) and Steve Ogden (R-Bryan) exempts from competitive bidding requirements state agency purchases of X5,000 or less that are not made under a written contract. HB 273 by Vicki Truitt (R-Southlake) and Chris Harris (R-Arlington) requires school districts that enter into a purchasing contract valued at $25,000 or more to document any contract-related fee, including management fees, and report them annually to the school board. HB 1764 by Edmund Kuempel (R-Seguin) and Jeff Wentworth (R-San Antonio) prohibits counties from making payments through anticipation notes if the payment exceeds 20% of the county's annual budget or $10 million. HB 2918 by Carl Isett (R-Lubbock) and Bob Deuell (R-Greenville) includes assistance organizations in the list of entities for which the Department of Information Resources is authorized to include in a procurement contract for automated information systems or other contracts of $1 million or more. It requires each state agency to prepare a business case and statewide impact analysis for each proposed major contract. A "major contract" is a contract with a value of at least $1 million under which a vendor will perform or manage an outsourced function or process. DIR is required to use the analysis to ensure the proposed major contract does not duplicate existing statewide information resources technology. It requires state agencies to develop, for each major contract, a project plan and file the plan with the Quality Assurance Team and the Texas Building and Procurement Commission before the agency spends more than 10% of allocated funds for a major contract. It requires state agencies to purchase an automated information system using Department of Information Resource information technology contracts or use a purchasing method designated by Texas Building and Procurement Commission to obtain the best value for the state. It repeals section of the Government Code relating to catalogue purchases of automated information systems. HB 3517 by Brandon Creighton (R-Conroe) and Kirk Watson (D-Austin) allows a municipality to use the competitive sealed proposal procedure for the purchase of goods or services, including high technology items. It requires a municipality that is considering using a method other than competitive sealed bidding to determine before notice is given the method of purchase that provides the best value of the municipality. HB 3560 by David Swinford (R-Dumas) and Kyle Janek (R-Houston) changes the name of the Texas Building and Procurement Commission to the Texas Facilities Commission and transfer its authority for overseeing state purchasing to the Comptroller's office. Procurement and management of computer and other high-technology contracts remain with the Department of Information Resources. SB 1765 by Kirk Watson (D-Austin) and Trey Martinez Fischer (D-San Antonio) increases the threshold for municipalities to enter into contracts without competitive bidding from $25,000 to $50,000. It requires a municipality, in making an expenditure of more than $3,000 but less that $50,000 (rather than $25,000) to contract at least two historically underutilized businesses on a rotating basis based on information provided by the Texas Building and Procurement Commission. PROPERTY HB 413 by Rob Eisler (R-The Woodlands) and John Carona (R-Dallas) extends the sign statute to create an offense if a person not only erects prohibited outdoor advertising but if a person allows outdoor advertising to be erected ormaintained onhis/her property. HB 573 by Veronica Gonzales (D-McAllen) and Eddie Lucio, Jr. (D-Brownsville) allows counties to establish street lights along a county road in a subdivision located in the unincorporated area of the county that has territory located within 150 miles of an international border. The county could impose a fee on landowners in the subdivision who benefit from the street lights. HB 610 by Fred Brown (R-Bryan) and Glenn Hegar (R-Katy) requires municipalities, when annexing an area, to include in the service plan a list of all services to be provided in annexed areas within 21/2 years. HB 1067 by Jim Murphy (R-Houston) and Kyle Janek (R-Houston) allows partial replatting in subdivisions located in the City of Houston. HB 1100 by Eddie Lucio, III, (D-Rancho Viejo) and Eddie Lucio, Jr. (D-Brownsville) authorizes persons owning real property in a subdivision to apply to the commissioners court of the county for permission to cancel an existing subdivision plat and to reestablish the property using lots and blocks that are consistent with the previous subdivision plat. This only applies to a subdivision for which a plat has been filed for 75 years or more; the most recent plat describes at least a portion of the property as acreage tracts; a previous plat described a least a portion of the property as lots and blocks; and the county tax assessor-collector lists the property on the tax rolls based on the description in the previous plat. HB 1495 by Bill Callegari (R-Katy) and Robert Nichols (R-Jacksonville) is the Landowner Bill of Rights Act. It would requires the attorney general to prepare a written statement that includes a bill of rights for property owners whose real property maybe acquired by a governmental or private entity through the use of eminent domain. It must notify each property owner that the property owner has the right to notice of the proposed acquisition; a bona fide good faith effort to negotiate by the entity proposing to acquire the property; an assessment of damages to the owner that will result from the taking of the property; a hearing on the assessment of damages; and an appeal of a judgment in a condemnation proceeding, including an appeal of an assessment of damages. Before a governmental entity begins negotiation with a property owner to acquire real property, the entity must send by first-class mail or otherwise provide a landowner's bill of rights statement. HB 1551 by Scott Hochberg (D-Houston) and Royce west (D-Dallas) eliminates the ability of a defendant to continue maintaining a public nuisance after the defendant has been sanctioned by the courts. It increases the authority of jurisdictions to abate the occurrence of illegal activities at locations including multi-family residential sites, hotels, motels, and other businesses where illegal activities occur. HB 1671 by Mark Homer (D-Paris) and Kel Seliger (R-Amarillo) prohibits a person from erecting a gate across neighborhood or third class roads unless it is approved by the county commissioners' court of the county. HB 1852 by Frank Corte (R-San Antonio) and Leticia Van de Putte (D-San Antonio) allows a county to regulate lighting within 5 miles of a military base if requested by the commanding officer of the base. HB 2006 by Beverly Woolley (R-Houston) and Kyle Janelc (R-Houston) makes several changes to procedures for the state or a political subdivision to exercise the power of eminent domain including restricting eminent domain for economic development purposes to projects that are for a public use and authorizing property owners whose property is acquired for creating an easement to construct streets or roads at any location above the easement. It adds a new section in law entitled the Truth in Condemnation Procedures Act. It requires governmental entities to hold a record vote prior to initiating a condemnation proceeding. If more than one ineinber objects to adopting a single ordinance for all units of property to be condemned, a separate record vote will be required for each unit of property with reasonable notice given to the property owner. An entity exercising eminent domain authority is required to snake a bona fide offer based on a reasonably thorough investigation and honest assessment of the amount of just compensation to acquire the property from the property owner voltuitarily. If a court determines that a condemning entity did not make a bona fide offer to acquire the property voluntarily, the court is required to abate the suit and order the condemnor to make a bona fide offer and order the condemnor to pay court costs and reasonable attorney's fees. If the property is not used for the purpose for which it was acquired within 10 years, the property owner or the owner's heirs are entitled to repurchase the property for the price paid to the owner when the governmental entity acquired the property. An entity other than a governmental entity that is authorized to exercise eminent domain must give the property owner any information the property owner requests. The property owner or the attorney general can go to court to compel the release of requested information and recover court costs and attorneys fees. In eminent domain cases involving the state highway system or a county toll project, the commissioners are required to consider any diminished access to the highway and to or from the remaining property to the extent that it affects the present market value of the real property. A water and sewer utility can only acquire by condemnation easements or lesser property interests reasonably necessary to comply with federal and state regulations relating to sanitation. HB 2281 by Frank Corte (R-San Antonio) and Carlos Uresti (D-San Antonio) authorizes the governing body of a mtuiicipality to delegate the ability to approve minor replats. HB 2819 by Allan Ritter (D-Nederland) and Mike Jackson (R-Pasadena) authorizes the School Land Board to evaluate applications to use coastal public lands and issue authorization for the uses that are determined to be in the best interest of the state. HB 2931 by Tracy King (D-Batesville) and Judith Zaffirini (D-Laredo) authorizes a landowner with real property enclosed by a fence designed to exclude intruders or contain livestock to obtain from a court a judgment entitling the person to a lien against the motor vehicle used to damage the fence. HB 2944 by Jim Murphy (R-Houston) and John Whitmire (D-Houston) prohibits the Texas Department of Transportation from approving a permit for outdoor advertising without the approval of the municipality (in municipalities with a population of more than 1.9 million). HB 2945 by Jim Murphy (R-Houston) and John Whitmire (D-Houston) authorizes municipalities with a population of 1.9 million or more to employ time-amortization as an alternative means of compensation for on-premise signs removed because of regulatory enactment. HB 2991 by Jim Murphy (R-Houston) and Tommy Williams (R-The Woodlands) allows the commissioners court of a county of 3.3 million or more or an adjacent county to deny or designate access to or from a controlled access highway within the county and outside the limits of a municipality, including a state highway, at which access to or from the highway is permitted and determine the type and extent of access permitted at each ocation. HB 3325 by Juan Escobar (D-Kingsville) and Eddie Lucio, Jr. (D-Brownsville) grants the Town of South Padre Island a five mile extension on its extraterritorial jurisdiction. HB 3441 by Larry Phillips (R-Sherman) and Craig Estes (R-Wichita Falls) redefines "eligible highway" in order to authorize the Texas Transportation Commission to adopt rules regarding state requirements for sign placement to mirror federal requirements. HJR 30 by Jim Jackson (R-Carrollton) and Kyle Janek (R-Houston) proposes a constitutional amendment allowing a governmental entity to sell real property acquired through eminent domain to the person or heirs of the person who owned the property immediately before the taking at the price the entity paid if the public use for which the property was acquired is canceled; no actual progress is made toward the public use during a prescribed period of time; or the property is unnecessary for the public use. SB 63 by Judith Zaffirini (D-Laredo) and Juan Escobar (D-Kingsville) authorizes the commissioners' court of a county located within 100 miles of an international boundary, with a population of more than 5,000, and no incorporated municipalities to enact ordinances. SB 182 by Jeff Wentworth (R-San Antonio) and Harvey Hilderbran (R-Kerrville) amends the law relating to trespassing to include a recreational vehicle park as property on which a person commits an offense if the person enters or remains on or in such property of another without effective consent. SB 781 by Eddie Lucio, Jr. (D-Brownsville) and Joe Pickett (D-El Paso) authorizes district courts, at the request of a consumer, to enjoin a violation or threatened violation of Texas' colonia prevention laws and requires the developer of the illegally plotted land to bring the lots into compliance with state law. SB 978 by Kirk Watson (D-Austin) and Craig Eiland (D-Texas City) increases the allowable number of insurance claims filed before the insured is assessed a premium surcharge from one claim during athree-year period to two claims during athree-year perio . SB 1781 by John Carona (R-Dallas) and Drew Darby (R-San Angelo) requires a person with a right of action for the recovery of real property or an interest in real property conveyed by an instrument with defects to bring suit within two years (rather than four years). SB 1867 by Judith Zaffirini (D-Laredo) and Ryan Guillen (R-Rio Grande City) authorizes the commissioners court of a county to approve and issue an amending plat if the amending plat is signed by the applicants to correct an error in a course or distance shown on the plat; to add a course or distance that was omitted on the preceding plat; or to correct an error in a real property description. SJR 44 by Craig Estes (R-Wichita Falls) and Rick Hardcastle (R-Wichita Falls) proposes a constitutional amendment authorizing the legislature to permit the voters of a municipality with a population of less than l 0,000 to authorize the governing body of the municipality to enter into an agreement with an owner of real property in or adj acent to an area in the municipality that has been approved for funding under revitalization or redevelopment programs to prohibit ad valorem tax increases on the owner's property for a limited period. TAX - AD VALOREM HB 5 by Leo Berman (R-Tyler) and Bob Deuell (R-Tyler) limits the school property taxes on the residence homesteads of the elderly and the disabled to reflect the reduction in the tax rates from 2005 to 2006 and to 2007. (This is the enabling bill for SJR 13.) HB 35 by Burt Solomons (R-Carrollton) and Kel Seliger (R-Amarillo) prohibits the compensation of the chief appraiser from being linked directly or indirectly to an increase in the total market, appraised, or taxable value of property located in the appraisal district. HB 264 by Larry Phillips (R-Sherman) and Kevin Eltife (R-Tyler) allows a taxpayer to file a simple check-off form prescribed by the comptroller if the information contained in the taxpayer's most recent rendition statement for the prior tax year continues to be accurate. HB 316 by Sid Miller (R-Stephenville) and Troy Fraser (R-Marble Falls) exempts from ad valorem taxes property that is part of a rail facility owned by a rural rail transportation district. HB 402 by Fred Hill (R-Richardson) and Glenn Hegar, Jr. (R-Katy) prohibits a member of the board of directors of an appraisal district from directly or indirectly communicating (ex parte communications) with the chief appraiser on any matter relating to the appraisal of property by the appraisal district, except in an open meeting of the appraisal district board of directors or another public forum; or closed meeting of the board to consult with the board's attorney about pending litigation. A chief appraiser commits an offense if he/she directly or indirectly communicates with a member of the board of directors of the appraisal district on any matter relating to the appraisal of property except in the same circumstances as above. An offense is a Class C misdemeanor. HB 438 by Scott Hochberg (D-Houston) and Glenn Hegar (R-Katy) limits the maximum percentage increase in the appraised value of a residence homestead for ad valorem taxation to 10% regardless of the number of years since the most recent taX appraisal of the homestead. (This is the enabling bill for HJR 40.) HB 538 by Bill Callegari (R-Katy) and Robert Nichols (R-Jacksonville) provides that a property owner who has not designated an agent to represent the owner at an appraisal review board hearing is entitled to one postponement of the hearing of an appraisal review board without showing cause if requested prior to the date of the hearing. HB 604 by Donna Howard (D-Austin) and Jeff Wentworth (R-San Antonio) adds to the definition of "qualified open-space land" land that is devoted principally to wildlife management; and it qualifies for appraisal as open-space land regardless of the manner in which the land was used in any preceding year. Wildlife management includes actively using land to protect federally listed endangered species under a federal permit if the land is included in a habitat preserve and is subject to a conservation easement or part of a conservation development under a federally approved habitat conservation plan. HB 923 by Vicki Truitt (R-Southlake) and John Carona (R-Dallas) provides that if an assessor mails a tax bill to a mortgagee of a property, the assessor is not required to mail a copy of the bill to any mortgagee. HB 1022 by Harvey Hilderbran (R-Kerrville) and Tommy Williams provides that an individual is entitled to a tax exemption of one motor vehicle owned by the individual that is used in the course of the individual's occupation or profession and is also used for personal activities of the owner. (This is the enabling bill for HJR 54.) HB 1010 by Donna Howard (D-Austin) and Kyle Janek (R-Houston) allows appraisal districts to consolidate appraisal district functions for property located in more than one appraisal district. HB 1210 by Jim Jackson (R-Carrollton) and Chris Harris (R-Arlington) allows the governing body of the taxing unit to extend (for up to two years) the deadline for filing an application for a refund of an overpayment or erroneous payment of ad valorem taxes on showing of good cause by the taxpayer. HB 1680 by David Swinford (R-Dumas) and Kel Seliger (R-Amarillo) prohibits the chief appraiser from appealing an order of the appraisal review board determining a taxpayer protect if the protest involved a determination of the appraised or market value of the taxpayer's property and that value according to the order that is the subj ect of the appeal is less than $1 million or for any other taxpayer protest, the property to which the protest applies has an appraised value of less than $1 million. The chief appraiser can appeal in one of those cases if taxpayer fraud is alleged. HB 1899 by Kirk England (R-Grand Prairie) and Chris Harris (R-Arlington) authorizes the aggregation of multiple tracts of land to be sold at a foreclosure sale when there are five or more year (rather than the current 1 o years) of delinquent taxes on a group of similarly situated parcels. It applies only incases where the delinquent parcels are in a municipality with a population of more than 100,000 situated in two or more counties. HB 1910 by Gary Elkins (R-Houston) and Kirk Watson (D-Austin) subjects a person's personal property to seizure for the payment of a tax imposed on the property before the tax becomes delinquent if the tax collector discovers that property on which the tax has been or will be imposed is about to be sold in a liquidation sale in connection with the cessation of a business and the collector knows of no other personal property in the county from which the tax may be satisfied. HB 1928 by Kino Flores (D-Mission) and Eddie Lucio, Jr. (D-Brownsville) exempts from ad valorem taxes trailer-type units designed primarily for use as a temporary living quarters in connection with recreational, camping, travel, or seasonal use. HB 2087 by Fred Hill (R-Richardson) and Jeff Wentworth (R-San Antonio) prohibits taxing entities that have had two petition elections where the voters did not approve a limitation on the residence homesteads of the elderly or disabled from having another election for three years. HB 2138 by Ken Paxton, Jr. (R-Frisco) and Jeff Wentworth (R-San Antonio) is the Property Tax Lender License Act. It would institute licensing requirements for property tax lenders. HB 2188 by Ken Paxton, Jr. (R-Frisco) and Tommy Williams (R-The Woodlands) exempts information relating to real property sales prices, descriptions, characteristics, and other related information received from a private entity by the comptroller or the chief appraiser from public disclosure laws. HB 2982 by Riclc Hardcastle (R-Vernon) and Kel Seliger (R-Amarillo) sets out a procedure to taY portable drilling rigs and add a market condition factor to the formula for appraisal of real property that has an oil or gas interest. HB 3024 by Stephen Frost (D-Atlanta) and Kevin Eltife (R-Tyler) requires the appraisal district to establish the value of property by clear and convincing evidence (rather than a preponderance of the evidence) if a property owner provides at least two weeks prior to the hearing an appraisal of the property performed with 180 days of the date of the hearing (if the property is valued $1 million or less). HB 3038 by Patrick Rose (D-Dripping Springs) and Kirk Watson (D-Austin) prohibits the chief appraiser or any other person who performs appraisal services for the appraisal district for compensation from being the appraisal district's taxpayer liaison officer. HB 3191 by Fred Hill (R-Richardson) and Royce West (D-Dallas) increases the property tax exemption from 50% to 100% for charitable organizations providing low-income housing in a county with a population of at least 1.4 million. HB 3195 by Fred Hill (R-Richardson) and Toininy Williams (R-The Woodlands) requires a proposed municipal or county budget that will require raising more revenue from property taxes than in the previous year to contain a cover page stating in 18-point or larger type: "This budget will raise more total property taxes than last year's budget by (insert total dollar amount of increase and percentage increase)." Adoption of a budget that requires raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the increase. HB 3492 by John Otto (R-Dayton) and Kyle Janek (R-Houston) requires the comptroller's annual property value study to ensure that different levels of appraisal resulting from protests are appropriately adjusted in the study. HB 3495 by John Otto (R-Dayton) and Tommy Williams (R-The Woodlands) requires the notice of a public hearing where the governing body will vote on a proposed tax rate to include the total tax revenue raised in the previous rear and the tax rate per $100 valuation compared with the total taX revenue proposed to be raised in the current year and the tax rate excluding tax revenue to be raised from new property. HB 3496 by John Otto (R-Dayton) and Tommy Williams (R-The Woodlands) requires notices of appraised value for single-family residences qualifying for a residential homestead exemption to be delivered by April 1St (rather than May 15th). It requires school districts (only in connection with taxes imposed in 2007) to provide in the tax bill information on the amount of tax that would be imposed by applying the district's maintenance and operations rate for the 2004 tax year to current total value for 2007; the amount of tax that would be imposed by applying the district's maintenance and operations rate for the 2007 tax year to current total value for 2007; and the amount, if any, by which the amount calculated exceeds the second calculation, it must be labeled "Estimate of school district maintenance and operations property tax savings attributable to HB 1, Acts of the 79th Legislature, 3rd Called Session." HB 3630 by Corbin Van Arsdale (R-Houston) and Glenn Hegar, Jr. (R-Katy) provides that for land used for single-family residential purposes that is contiguous to agricultural oropen-space land owned by the same person or the person's immediate family, the chief appraiser is required to determine the price for which the land and the contiguous land would sell for if sold as a single parcel of property and the portion of the market value of the single parcel that would be attributable to the land. If the chief appraiser used the market data comparison method of appraisal, he/she is prohibited from using comparable sales data pertaining to the sale of land located in the corporate limits of a municipality or in a platted subdivision or addition. HJR 40 by Scott Hochberg (D-Houston) and Glenn Hegar, Jr. (R-Katy) is a constihrtional amendment providing that a limitation on the inaxiinum percentage increase in the appraised value of a residence homestead for ad valorem taxation established by the legislature applies to a residence homestead regardless of the number of years since the most recent tax appraisal of the homestead. (HB 438 is the enabling bill.) HJR 54 by Harvey Hilderbran (R-Kerrville) and Tommy Williams (R-The Woodlands) is a constitutional amendment to exempt one or more passenger cars or light trucks owned by an individual and used in the course of the owner's occupation or profession and also for personal activities of the owner. (The enabling bill is HB 1022.) SB 57 by Judith Zaffirini (D-Laredo) and Veronica Gonzales (D-McAllen) adds appeals of orders of appraisal review boards to the list of cases given preference by trial courts in counties with a population of less than 175,000. SB 162 by Florence Shapiro (R-Plano) and Linda Harper-Brown (R-Irving) sets a maximum tax rate of 60 cents per $100 taxable value for property subj ect to tax abatement agreements entered into by the Dallas County Utility and Reclamation District pertaining to single-family residential property. SB 426 by Royce West (D-Dallas) and Fred Hill (R-Richardson) continues the ad valorem tax exemption for low-income or moderate-income housing when there is a change in ownership due to a foreclosure sale. SB 456 by Kirk Watson (D-Austin) and Eddie Rodriguez (D-Austin) requires a written communication delivered to a property owner by a taxing unit that threatens a lawsuit to collect a delinquent tax assessed against property that may qualify as a residence homestead to contain a notice that the property owner may qualify for a homestead exemption. SB 796 by Kyle Janek (R-Houston) and Larry Taylor (R-League City) provides that for taxing units located in a county having a population of 250,000 or more that borders a county having a population of 3.3 million or more and the Gulf of Mexico, the governing body of a taxing unit that has its taxes collected by another taxing unit that has adopted the split-payment option, may provide that the split-payment option does not apply to the taxing unit's taxes collected by another taxing unit. SB 812 by Kyle Janek (R-Houston) and Beverly Woolley (R-Houston) authorizes an ad valorem tax exemption for non-profit corporations that engage primarily (rather than exclusively) in providing chilled water and steam to ahealth-related institution. SB 948 by Glenn Hegar, Jr. (R-Katy) and Corbin Van Arsdale (R-Houston) allows the board of directors of an appraisal district to waive the penalty and interest on a delinquent payment of a taxing unit's allocation of the appraisal district's budget for good cause. SB 1063 by Tommy Williams (R-The Woodlands) and Rob Eisler (R-The Woodlands) authorizes the governing body of a taxing unit to waive penalties and interest on a delinquent ad valorem tax if the taxpayer submits evidence showing that the taxpayer attempted to pay the tax before the delinquency date by mail; the taxpayer mailed the tax payment to an incorrect address that in a prior tax year was the correct address for payment of the taxpayer's tax; the payment was mailed to the incorrect address within one year of the date that the former address ceased to be the correct address for payment of the tax; and the taxpayer paid the tax not later than the 21St day after the date the taxpayer knew or should have known of the delinquency. SB 1405 by Jeff Wentworth (R-San Antonio) and Jim Keffer (R-Eastland) requires the chief appraiser to estimate and report the taxable value of property in each county, city, and school district (current law only requires estimating and reporting to school districts.) SB 1520 by Jeff Wentworth (R-San Antonio) and Ken Paxton (R-Frisco) allows a property owner to transfer a tax lien to a person who pays the taxes on behalf of a property owner for delinquent taxes if the property is not subject to a recorded mortgage lien or a tax lien transfer to the same person for one or more prior years on the same property has been executed and recorded. SJR 13 by Kip Averitt (R-Waco) and Leo Berman (R-Tyler) is a constitutional amendment to allow the legislature to limit the school property taxes on the residence homesteads of the elderly and the disabled to reflect the reduction in the tax rates from 2005 to 2006 and to 2007. It was adopted by the voters on May 12, 2007. SJR 29 by John Carona (R-Dallas) and Kino Flores (D-Mission) is a constitutional amendment to authorize the legislature to exempt all or part of the residence homesteads of totally disabled veterans. TAX -BUSINESS/FRANCHISE HB 1207 by Jim Keffer (R-Eastland) and Steve Ogden (R-Bryan) repeals the HB 3 "exit tax" attributable to currently taxable entities leaving the state during 2007. It would also impose an exit tax (generally based on margin from Jan. 1, 2007) on currently non- taxable entities doing business in Texas as of June 1, 2007 but leaving the state prior to January 1, 2008. HB 3928 by Jim Keffer (R-Eastland) is the revised franchise tax technical corrections bill. Key provisions include: Controlling Interest - It amends the definition of "controlling interest" to reduce the threshold from 80% or more to more than 50%. Limited Liability Partnerships - It amends the definition of a "taxable entity" to include limited partnerships and clarifies that the exclusion for a general partnership owned by natural persons does not apply to LLP's. Rental Income - It requires partnerships to include gross rental income instead of net rental income in determining total revenue. Small Business Discount - It applies a sliding discount scale for taxable entities with total revenue between $300,000 and $900,000. Entities with total revenue of less than $300,000 are exempt; entities with total revenue between $300,000 and $4,000 get an 80% discount; entities with total revenue between $400,000 and $500,000 get a 60% discount; entities with total revenue between $500,000 and $700,000 get a 40% discount; and entities with total revenue between $700,000 and $900,000 get a 20% discount. Optional Alternative Calculation - It provides an optional alternative method for calculating tax for businesses with total revenue of $10 million or less. It is calculated by multiplying apportioned total revenue by 0.575%. Taxable entities electing this calculation are eligible for the discounts for taxable entities with total revenue less than $900,000 but may not use tax credits or other adjustments. Combined Groups - It requires a taxable entity that is a combined group to report Texas receipts for entities in the group that do not have nexus with Texas and the amount of those receipts subject to taxation in another state due to the throwback provisions. Business Loss Carryforward - It changes the temporary credit provisions to base the credit on business loss carryforwards that existed before January 1, 20008. The annual business loss carryforwards are multiplied by 4.5%. The amount of carryforward is limited to the liability of the taxable entity claiming the credit. Client Company - It expands the definition of "client company" to include a client of a temporary employment service. Capital Gains -Capital gains from the sale of real property are included in the income that is subj ect to the 90% test for a passive entity. Business Tax Advisory Committee - It creates the Business Tax Advisory Committee to conduct a study on the impact of the franchise tax on Texas businesses. TAX -SALES HB 142 by Jim Jackson (R-Carrollton) and John Carona (R-Dallas) repeals Sections 322.105(4) and 322.107 of the Tax Code relating to the imposition of local sales tax on tangible personal property shipped or delivered from one transit district directly to a purchaser in another transit district. It would eliminate the sales and use tax exemption from sales tax imposed by a transit authority when the taxable items are shipped outside of the authority's boundaries. The seller is required to collect the sales and use tax regardless of where they are delivered based on the location of the seller. HB 261 by Joe Pickett (D-El Paso) and Kyle Janek (R-Houston) exempts motor vehicles sold by a federal, state, or local governmental entity at public auction from statutes relating to the presumptive value of a motor vehicle. HB 373 by Scott Hochberg (D-Houston) and Kip Averitt (R-Waco) institutes a sales tax exemption sales made by individuals of items originally bought by the individual or the individual's family for personal use if the individual does not hold a sales tax permit and the total receipts do not exceed $3,000 in a calendar year. HB 1720 by Jim McReynolds (D-Lufkin) and Steve Ogden (R-Bryan) repeals the population threshold for counties eligible to create a county assistance district and expands the functions for which a county assistance district can be created to include the provision of firefighting and fire prevention services. The combined sales tax rate in the area is still be capped at 2%. HB 3084 by Larry Phillips (R-Sherman) and Bob Deuell (R-Greenville) authorize the governing body of a municipality to call an election to repeal a municipal street maintenance sales tax. HB 3319 by Jim Keffer (R-Eastland) and Robert Duncan (R-Lubbock) is the sales tax clean-up bill. It: • Clarifies that a retailer is entitled to a sale for resale exemption on purchases of cell phones that are provided to customers as part of the customer's purchase of cell phone service. • Narrows the exemption applicable to purchases ofover-the-counter drugs to only those products bearing an FDA Drug Fact Panel. • Moves the date for the annual sales tax holiday from the first weekend in August to the third weekend in August to coincide with the later school start date. • It adds backpacks to the list of items exempted during the sales tax holiday. • Repeals destination-based sourcing rule for sales of services. • It exempts materials used in constructing pharmaceutical biotech cleanrooms. • Exempts hydrogen-powered cars from the Motor Vehicle Sales Tax. • Clarifies that sales tax applies to ready-mix concrete produced by aready-mix concrete contractor and incorporated into real property improvements. • Creates atwo-day annual sales tax holiday over Memorial Day weekend for some household appliances (washers, ceiling fans, dehimidifiers, dishwashers, incandescent and fluorescent light bulbs, programmable thermostats, air conditioners priced at $6,000 or less and regrigerators priced at $2,000 or less) that have the Energy Star efficiency rating. SB 190 by Kim Bruner (R-Fort Worth) and Diane Patrick (R-Arlington) requires the Comptroller, upon request, to provide information to any municipality (not just a municipality with a population of less than 275,000) relating to the amount of sales tax paid to the municipality during the preceding or current calendar year by each person doing business in the municipality who annually remits state and local sales tax payments of more than $500. TAX -OTHER HB 1332 by Warren Chisum (R-Pampa) and Kyle Janek (R-Houston) authorizes a credit or a refund of fuel taxes for purchase of diesel fuel used as feedstock in the manufacturing of tangible personal property for resale or in a medium for the removal of drill cuttings from a well bore in the production of oil or gas. HB 1524 by Ryan Guillen (D-Rio Grande City) and Judith Zaffirini (D-Laredo) authorizes a county located on an international border that has a population of less than 15,000 and that contains no incorporated territory of a municipality to provide for the planning, acquisition, establishment, development, construction, or renovation of a county parks and recreation system as a venue project. It county can call an election for voter approval to finance a venue project. HB 3314 by Jim Keffer (R-Eastland) and Robert Duncan (R-Lubbock) is the comptroller's tax collections bill. It: • Specifies that Travis County district courts are the venue and jurisdiction for tax suits in connection with collection actions taken by the comptroller. • Adds a statutory presumption that a taxpayer has collected taxes when the taxpayer has filed a return showing tax due. • Makes it a Class A misdemeanor for interference, trespass, or theft against seized property. • Makes individual officers, managers, and directors of business entities personally liable for fraudulent tax evasion. • Sets a deadline for bringing a suit to determine the validity of a state tax lien and to create a rebuttable presumption regarding the receipt of proper notice of tax liability. • Adds backpacks with a price of less than $100 to the sales tax holiday. • Allows an exemption or refund of diesel fuel tax paid on diesel fuel used by metropolitan rapid transit authorities providing public school transportation services to a school district. HB 3315 by Jim Keffer (R-Eastland) and Robert Duncan (R-Lubbock) makes several changes to insurance and insurance premium taxes. It: • Authorizes the comptroller to enter into cooperative agreements with other states to enforce state premium tax laws. • Allows the comptroller to enter into reciprocity agreements with other states to mutually set aside their retaliatory provisions in situations where those states determined that retaliation was not the preferred means of protecting their domestic insurers. • Repeals Article 4.11 A relating to the administrative services tax relating to federal preemption under the Employee Retirement Income Security Act statute. • Increases the annual aggregate assessment on insurers for the Volunteer fire Department Assistance Fund to $30 million (from $15 million). SB 242 by Florence Shapiro (R-Plano) and Warren Chisum (R-Pampa) establishes a tax division in the State Office of Administrative Hearings to perform contested case hearings involving the collection, administration, and enforcement of taxes and fees. SB 377 by Kyle Janek (R-Houston) and Warren Chisum (R-Pampa) requires the comptroller by rule to require a taxpayer who paid $10,000 or more in taxes the previous year to file electronically. SB 1502 by Judith Zaffirini (D-Laredo) and Valinda Bolton (D-Austin) authorizes emergency services districts that otherwise would be precluded from adopting a sales and use tax to adopt a sales and use tax, change the rate of its sales and use tax, or abolish its sales and use tax at an election if the board excludes from the election and the applicability of any proposed sales and use tax any territory in the district where the sales and use tax is at the 2% cap; and not later than the 30th day after the date on which the board issues the election order, gives, for informational purposes, written or oral notice on the proposed imposition, increase, or abolition of the sales and use tax, including the reasons for the proposed change, to the commissioners court of each county in which the district is located. TECHNOLOGY HB 320 by Buddy West (R-Odessa) and John Carona (R-Dallas) expands the list of entities authorized to use electronically readable information from a driver's license or personal identification certificate to include businesses for the purpose of check verification at the point of sale. HB 368 by Will Hartnett (R-Dallas) and Kirk Watson (D-Austin) allows the Office of Court Administration to award a grant to a local or state governmental entity in the judicial branch to provide technological support for the judiciary. HB 401 by Betty Brown (R-Athens) and Judith Zaffirini (D-Laredo) makes it an offense to use text messaging or electronic media to solicit sex or distribute sexually explicit material to a minor. HB 674 by David Swinford (R-Dumas) and Kel Seliger (R-Amarillo) authorizes the Department of Information Resources to accept a gift or grant of money, services, or property on behalf of the state for any public purpose related to the duties of the department. HB 675 by David Swinford (R-Dumas) and Kel Seliger (R-Amarillo) allows the heads of agencies that serve on the governing board of the Department of Information Resources to designate an employee on the agency's management or senior staff level to serve in their place. HB 732 by Mike Krusee (R-Round Rock) and Steve Ogden (R-Bryan) allows county clerks to accept any instrument authorized or required to be recorded in the clerk's office to be filed electronically without an original signature. HB 1060 by Tan Parker (R-Flower Mound) and Chris Harris (R-Arlington) allows hospitals to use electronically readable information from a driver's license or personal identification certificate. HB 1795 by Marc Veasey (D-Fort Worth) and Eliot Shapleigh (D-El Paso) authorizes the Finance Commission of Texas to establish rules that enhance customer security at unmanned teller machines through the implementation of new technologies. HB 2235 by Ryan Guillen (D-Rio Grande City) and Judith Zaffirini (D-Laredo) authorizes the executive committee of the Office of Rural Community Affairs to establish a grant program to award grants to public institutions of higher education, public high schools, and governmental entities located in a rural border county for the development and operation ofmulti-institutional technology centers that provide community access to technology, computer literacy programs, educational programs designed to provide concurrent enrollment credit for high school students taking postsecondary courses in information and emerging technologies, training for careers in technology-related fields and other highly skilled industries, and technology-related continuing and adult education programs. HB 2990 by Jerry Madden (R-Plano) and Kel Seliger (R-Amarillo) requires correctional facilities constructed on or after September 1, 2007 to be designed and built to use an electronic monitoring and tracking system to monitor the physical location and safety of all inmates housed in the facility; all employees working in the facility; all third-party vendors or other contractors who work in the facility; and all visitors to the facility who are granted access to areas of the facility to which only employees are normally admitted. The Texas Department of Corrections is authorized to retrofit correctional facilities constructed prior to September 1, 2007 to use an electronic monitoring system. SB 237 by Florence Shapiro (R-Plano) and Jerry Madden (R-Plano) requires the supreme court to adopt rules governing the electronic filing of documents in civil cases injustice of the peace courts. SB 955 by John Whitmire (D-Houston) and Sylvester Turner (D-Houston) authorizes persons screening an individual to work with children if the person is an employee of a public school district ornon-profit organization to use electronically readable information on a driver's license or personal identification certificate. SB 1828 by John Whitmire (D-Houston) and Mike Hamilton (R-Mauriceville) authorizes the use of electronically readable information on a drivers' license or personal identification certificate for alcoholic beverage retailers to determine if the license or certificate holder is over the age of 21. TELECOMMUNICATIONS HB 73 by Dan Flynn (R-Van) and Leticia Van de Putte (D-San Antonio) prohibits a person from fraudulently obtaining or attempting to obtain a telephone record of an individual without authorization of the resident to whom the record pertains by: making a statement the person knows to be false to an agent of a telephone company; making a statement the person knows to be false to a telephone company; fraudulently accessing the record through the telephone company's Internet website; or providing to a telephone company a document that the person knows is fraudulent, has been lost or stolen, has been obtained by fraud, or contains a false, fictitious, or fraudulent statement or representation. It is also an offense to ask another person to obtain a telephone record of a resident of the state knowing that the record will be obtained in a prohibited manner; to sell, transfer, or attempt to sell or transfer a telephone record without authorization; offer to obtain or offer to sell a telephone record that has been obtained without authorization. A violation is a Class A misdemeanor with a fine of up to $20,000. HB 143 by Joe Deshotel (D-Beaumont) and John Carona (R-Dallas) expands the application of the Texas no-call list for mobile telephones to include transmissions of a text or graphic message or image. It does not apply to a transmission made to a mobile telephone number as part of an ad-based telephone service, in connection with which the telephone service customer has agreed with the service provider to receive. HB 735 by Joe Straus, III (R-San Antonio) and Tommy Williams (R-The Woodlands) discontinues the Telecommunications Infrastructure Fund assessment upon the calendar quarter ending September 30, 2008. HB 1459 by Ryan Guillen (D-Rio Grande City) and Kyle Janek (R-Houston) exempts calls made from a pay phone from the sales tax on telecommunications services. HB 1788 by Jim Pitts (R-Waxahachie) and Glenn Hegar, Jr. (R-Katy) requires the Health and Human Services Commission to develop a coordinated strategic plan for information resources management that is consistent with the state strategic plan for information resources developed by the Department of Information Resources. It requires the Department of Information Resources, incoordination with the Legislative Budget Board, the Texas Building and Procurement Commission, and the comptroller to prepare a report assessing the current automated information systems of state agencies. HB 1789 by Jim Pitts (R-Waxahachie) and Glenn Hegar, Jr. (R-Katy) requires all information resources projects to be managed using project management practices including the documented and repeatable methods that a state agency uses to apply knowledge, skills, tools, and techniques to satisfy project activity requirements. The Department of Information Resources is required to establish guidelines for project management practices. SB 757 by Glenn Hegar, Jr. (R-Katy) and Bill Callegari (R-Katy) requires the Department of Information Resources to establish plans and policies for the system of telecommunications services managed and operated by the department. The plan must assess the progress made toward accomplishing the goals of the plan for a state telecommunications network and developing a system of telecommunications services. The plan must also provide information about best practices to assist state agencies in adopting methods for design, deployment, and management of telecommunications services. It eliminates the Telecommunications Planning and Oversight Council and give its duties to the Department of Information Resources. TORT HB 823 by Allan Ritter (D-Nederland) and Tommy Williams (R-The Woodlands) indemnifies professionals who provide architectural or engineering services performed voluntarily and uncompensated during a declared emergency and performed at the request of a federal, state, or local public official. HB 1070 by Jodie Laubenberg (R-Wylie) and Craig Estes (R-Wichita Falls) requires at least $1 million in liability insurance for amusement rides. HB 1183 by John Otto (R-Dayton) and Robert Nichols (R-Jacksonville) limits the liability of a landowner that allows his/her land to be used for radio control flying and related activities. HB 1560 by Bill Callegari (R-Katy) and Mike Jackson (R-Pasadena) indemnifies a governmental unit when property owned by the governmental entity is used for recreational purposes involving paintball use. HB 1602 by Corbin Van Arsdale (R-Houston) and Troy Fraser (R-Marble Falls) provides that venue for lawsuits brought under the federal Employers' Liability Act (the Jones Act) in state court would be either in the county in which the events resulting in the claim occurred; in the county where the defendant's principal office is located; or if the other two options do not apply, in the county where the plaintiff resided at the time the cause of action accrue . HB 2005 by Beverly Woolley (R-Houston) and Robert Duncan (R-Lubbock) adds practicing and retired physical and occupational therapists and their assistants to the list of volunteer health care providers exempted from liability under the Charitable Immunity and Liability Act. HB 2117 by Tan Parker (R-Flower Mound) and Chris Harris (R-Arlington) exempts from liability persons who in good faith administer emergency care as a public safety volunteer whose duties include responding rapidly to an emergency and including a person who administers emergency care using an automated external defibrillator. HB 3281 by Phil King (R-Weatherford) and Robert Duncan (R-Lubbock) authorizes a claimant to recover medical or health care expenses that are actually paid or are incurred on behalf of the claimant. SB 618 by Jeff Wentworth (R-San Antonio) and Will Hartnett (R-Dallas) gives justice, county, and small claims courts jurisdiction in matters up to $10,000 (rather than $5,000). SB 749 by Kyle Janek (R-Houston) and Will Hartnett (R-Dallas) makes the presiding judge a party in interest for the limited purpose of requesting a writ of mandamus from appellate courts to enforce priority setting hearings and trials for asbestos-related or silica-related cases in which the exposed person is living and has been diagnosed with malignant mesothelioma, malignant silica or malignant asbestos-related cancer, or acute silicosis. It authorizes additional compensation for the presiding judge of asbestos or silica cases and authorizes the presiding judge to appoint up to four staff members to address the additional workload. SB 791by Tommy Williams (R-The Woodlands) and Craig Eiland (D-Texas City) classifies oysters as an inherently unsafe product for human consumption. SB 1047 by Kel Seliger (R-Amarillo) and David Swinford (R-Dumas) authorizes information obtained by the consumer protection division of the attorney general's office through a civil investigative demand under the Deceptive Trade Practices-Consumer Protection Act to be maintained by a designated employee of the office of the attorney general (rather than an authorized employee of the consumer protection division). WORKERS' COMPENSATION HB 34 by Burt Solomons (R-Carrollton) and Kim Brimer (R-Fort Worth) prohibits the giving, allowing, or paying (or offering to give, allow or pay) of an improper inducement relating to the delivery of benefits to an injured employee or improperly attempts to influence the delivery of benefits to an injured employee, including through the making of improper threats. A violation is a Class A administrative violation. HB 472 by Burt Solomons (R-Carrollton) and Leticia Van de Putte (D-San Antonio) amends the current third party administrator law to subject TPA's dealing with workers' compensation insurance and workers' compensation self insurers to Texas Department of Insurance licensing and requires them to file an annual report on their activities with the insurance commissioner. HB 473 by Burt Solomons (R-Carrollton) and Leticia Van de Putte (D-San Antonio) authorizes insurance carriers to use an informal voluntary network to obtain a contractual agreement that provides for fees different than the fee guidelines. If a carrier chooses to use an informal voluntary network to obtain a contractual fee, there must be a contractual arrangement between the carrier and the informal voluntary network; and the informal voluntary network and the health care provider. Informal voluntary networks must be certified as a workers' compensation health care network. HB 886 by Helen Giddings (D-Desoto) and Kirk Watson (D-Austin) allows the Commissioner of Insurance to establish an optional preauthorization plan for employers that participate in a pilot program. An employer can make a proposal describing the workplace modifications and other changes that the employer proposes to make to accommodate an injured employee's return to work. HB 888 by Helen Giddings (D-Desoto) and Kirk Watson (D-Austin) requires medical providers, upon written request of an ombudsman, to release medical records at no cost to an ombudsman from the Office of Injured Employee Counsel (OIEC) who is assisting an injured worker. HB 1003 by Helen Giddings (D-Desoto) and Kirk Watson (D-Austin) requires independent review organizations that use doctors to perform reviews of health care services to use only doctors licensed to practice in Texas. HB 1005 by Helen Giddings (D-Desoto) and Leticia Van de Putte allows health care providers that fail to timely submit a claim for payment to the appropriate insurance carrier to not forfeit the provider's right to reimbursement for the claim, if the provider submits proof satisfactory to the commissioner that the claim was erroneously filed with either the insurer that issues a policy of group accident and health insurance under which the injured employee is a covered insured; a health maintenance organization that issues an evidence of coverage under which the injured employee is a covered enrollee; or a workers' compensation insurance carrier other than the insurance carrier liable. The commissioner can also determine that the failure resulted from a catastrophic event that substantially interfered with the normal business operations of the provider. A health care provider who erroneously submits a claim forfeits the provider's right to reimbursement if the provider fails to submit the claim to the correct carrier within 95 days after the date the provider is notified of the erroneous submission of the claim. HB 1006 by Helen Giddings (D-Desoto) and Kirk Watson (D-Austin) requires a utilization review agent or an insurance carrier that uses doctors to perform reviews of health care services to use only doctors licensed to practice in Texas. HB 2004 by Helen Giddings (D-Desoto) and Eddie Lucio, Jr. (D-Brownsville) requires a doctor who reviews a workers' compensation case through peer review or utilization review to be certified in a professional specialty appropriate to the care received by the injured employee. SB 458 by Kirk Watson (D-Austin) and Helen Giddings (D-Desoto) amends the definition of "health care" to include prosthetic or orthotic devices and the fitting of, changing or repair to such devices. SB 471 by Kim Brimer (R-Fort Worth) and Craig Eiland (D-Texas City) requires the Commissioner to prescribe information that must be reported on each workers' compensation claim and thereby remove the information currently deemed necessary by statute. SB 1169 by Kyle Janek (R-Houston) and Gary Elkins (R-Houston) allows for the reimbursement of an insurance carrier for any overpayment of benefits made by the insurance carrier based on an opinion rendered by a designated doctor, if that opinion is reversed or modified by a final arbitration award or a final order or decision of the commissioner or a court. Reimbursement would be from the subsequent injury fund. SB 1627 by John Carona (R-Dallas) and Mando Martinez (D-Weslaco) allows for the prosecution of persons that fraudulently violate the workers' compensation insurance laws. WORKFORCE HB 48 by Norma Chavez (D-El Paso) and Judith Zaffirini (D-Laredo) deletes the sunset date on the law that sets the amount allocated annually from the employment and training investment holding fund at 67% for the Texas Enterprise Fund and 33% for the Skills Development Fund. HB 2383 by Eddie Lucio, III (D-Rancho Viejo) and Eddie Lucio, Jr. (D-Brownsville) authorizes the payment costs of certification exams in career and technology programs provided the student passes the test and demonstrates financial need. It changes the criteria for the Early High School Graduation Scholarship program to require graduation from a "public" high school in Texas; completing high school in no more than 46 (rather than 45); and be a citizen of the United States or be lawfully authorized to be present in the United States. HB 3074 by Brandon Creighton (R-Conroe) and Carlos Uresti (D-San Antonio) deletes the requirement that the Texas Workforce Commission in consultation with local workforce development boards to establish contracting guidelines for boards designed to ensure that an entity that contracts with a local workforce development board to use, display, and advertise the entity's name when providing workforce services for the board. HB 4065 by John Otto (R-Dayton) and Kirk Watson (D-Austin) requires the Texas Workforce Commission to establish a pilot program to provide grants for the construction of facilities for job training and employment services. Additional information can be obtained via the Senate and House websites: www.senate.state.tx.us www.house.state.tx.us AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Economic Development CM: George C. Campbell ~~ ~t IR TF,(~'T Receive a report, hold a discussion and give staff direction regarding the establishment of Public Improvement District (PID) Guidelines. BACKGROUND The City Council received a request from the developers of Hunter's Ranch to consider the creation of a public improvement district (PID) to fund a portion of the public infrastructure costs involved in that project. Council requested that the Economic Development Partnership (EDP) Board review the PID request and report back to the Clty COU11c11. At their October and November 2006 meetings, the EDP Board received information and discussed the purpose and structure of PIDs. A PID allows the City to collect and levy a special assessment on property that is located within the city limits and within the City's ETJ. The funds from the assessment can be used to make public infrastructure improvements and to maintain those improvements. The developer, Clty financial advisors, and bond counsel also participated in the discussions. At their January and May 2007 meetings, the EDP Board drafted the attached guidelines for the City Council's review and discussion tonight. The following is an overview of the guidelines as proposed: Section 1 addresses the quality of the development. The Board recommends that the City Council consider the creation of a PID for high quality developments that do not exist or perhaps are limited within the City. Since the property owners located within the district will be paying this additional assessment, it is important that the developer describe in his application the elements that make the development unique and worthy of the additional assessment. The document provides elements the Board suggests could be considered. Section 2 simply describes the types of improvements that are eligible under the PID Assessment Act. Section 3 addresses two options for funding PIDs. Funding Option 1 ispay-as-you-go. Under this option the assessments are collected and disbursed annually. The amount disbursed cannot exceed the amount collected or the expenses incurred, whichever is less. This is the type of PID we have typically seen in the Metroplex and most frequently used for maintenance projects. -1- Funding Option 2 requires the sale of bonds after construction of the project or a portion of the project has been completed. This is the type of funding the Hunter's Ranch developers are seeking. Under this scenario, the Board recommends the developers incur the cost of the public infrastructure and complete 50% of the buildings (homes or commercial structures) before the bonds could be sold to reimburse the developer. If the project is built in phases, the Council could consider selling bonds as each phase is completed by at least 50%. The Council could consider reducing the percentage of completion required if the financial feasibility report justifies the reduction. The sale of bonds must be structured so that the property owners are responsible for the debt and the City is held harmless. Section 4 recommends an assessment cap. In early discussions the Board considered the amount of $1 per $100 valuation as a cap that would include the City's tax rate and the PID assessment. Some of the water districts in the area have chosen the $1 assessment and have been successful in developing their projects. At present, the City's tax rate is $0.62652 (approximately 60% of $1). A $1 cap would limit the PID assessment to $0.37348 (approximately 40% of $1). The Board recommends the Council adopt a limit for PID assessment of $0.40 per $100 valuation. Should the City's tax rate increase in the future, PIDs could still be eligible up to $0.40 even though the total City and PID assessment could exceed $ l . The decision of a PID assessment rate is one the Council would need to carefully consider on acase-by-case basis. Section 5 outlines information required in the PID application. Additional information can be requested for any project - as requested by staff, Council or City financial advisors or bond counsel. Section 6 requires a deposit of $2,500 at the time of application to be used to reimburse the City's administrative costs. Should a balance remain after the application has been processed, the funds would be returned to the applicant. PRIOR ACTION/REVIEW The Economic Development Partnership Board drafted the guidelines for City Council consideration and stresses that the document is not meant to be a strict policy, but guidelines to follow when considering future PID applications. In addition, the Board believes that PID applications should be carefully considered on acase-by-case basis. The Board is not recommending a PID for any particular development at this time. EXHIBITS: Draft Public Improvement District Guidelines Respectfully submitted: Y ~ y + + I ~~ 'i'~'_ai I~ i ~ }}44 ~~ ~ I ~'A 4 / II M ~ ' ]i. s ~ ~~ • 5 •.I Linda Ratliff, Director Economic Development Department -2- DRAFT Public Improvement District (PID) Guidelines Mixed-Use or Residential PIDs The Public Improvement District (PID) Assessment Act (the "Act") allows a city to levy and collect special assessments on property that is within the city or within the city's extraterritorial jurisdiction (ETJ) to make certain improvements as authorized by the Act to the infrastructure to facilitate economic growth within an area. The following guidelines are intended to aid the City Council in determining if the creation of a PID is financially feasible, practical and in the best interest of the citizens of Denton. This document does not require the City Council to participate in PIDs, nor does it prevent the City Council from establishing PIDs with elements that vary from these guidelines. Section I -Policy Statement The City Council reserves the right to consider PID applications on a case-by-case basis. Projects that bring a unique, high quality desired producfto the City of Denton, and such uniqueness or high quality could not be created unless PID funding is available, may be considered. Consideration will be given to developments that provide the types of development that diversify and enhance the tax base. Desired product is defined as a high quality mixed-use development that does not exist within the City of Denton (or is limited) at the time the PID application is presented. The development must promote the policy of the Denton Plan. Elements of the development may include: • The development should exceed Denton Development Code standards in a combination of areas. Examples might be: o Park land/development o Architectural design o A high quality in building materials not seen in other developments o Lot sizes that exceed the average lot size in Denton o A higher quality of amenities not provided in other developments in Denton • The development provides a significant impact in the quality of residential units on the community. PIDs may also be considered for redevelopment areas such as downtown. • Developments of significant size should have a commercial component that provides services and products that serve the needs of the neighborhood, i.e., cleaners, pharmacy, bank, etc. • The development must have a cohesive theme throughout that identifies the unique nature of the project. • Amenities or characteristics that describe the project as unique must be clearly definable and measurable as the developer will be required to demonstrate the project has been completed as proposed. • Ongoing operation and maintenance costs for amenities or public facilities where the costs are borne by the City of Denton (i.e., library, dedicated parks} may eliminate a project from consideration. Section 2 -Reimbursable expenditures Public amenities and facilities must be available to all City of Denton citizens. Some or all of the following list of improvements may be financed through PID funds; however, the City Council reserves the right to consider each project on acase-by-case basis and will determine the appropriate improvements applicable to any project. • Water, wastewater, health and sanitation, or drainage improvements (including acquisition, construction, or improvements of water, wastewater or drainage improvements}; • Street and sidewalk improvements (acquiring, constructing, improving, widening, narrowing, closing or rerouting sidewalks, streets or any other roadways or their rig ht-of-Way); • Mass transit improvements (acquisition, construction, improvement or rerouting of mass transportation facilities); • Parking improvements (acquisition, construction or improvement of off-street parking facilities}; • Library improvements (acquisition, construction or improvement of libraries}; • Park, recreation and cultural improvements (the establishment or improvement of parks); • Landscaping and other aesthetic improvements (erection of fountains, distinctive lighting and signs); • Art installation (acquisition and installation of pieces of art); • Creation of pedestrian malls (construction or improvements of pedestrian malls) • Similar improvements (projects similarto those listed above); • Supplemental safety services, including public safety and security services; • Supplemental business-related services for the improvement of the district, including advertising and business recruitment and development. Section 3 - FundinglReimbursement of Costs PIDs will not be used for construction financing. The City Council may consider one of two options to reimburse public improvementdistricts for eligible costs. The City Council will review each development on acase-by-case basis to determine the appropriate funding option. A. Funding Option 1 -Pay As You Go. Under this option, the assessed funds are disbursed annually in an amount that does not exceed the expenditures incurred for eligible project costs. No bonds secured by PID assessments shall be sold. Although this option is used most frequently for maintenance projects, the City Council may consider the Pay As You Go Option for any project. The term for Pay As You Go PIDs may not exceed 30 years for capital expenditures. Operation and Maintenance PIDs may be ongoing. B. Reimbursement Option 2 -Revenue Bond Sales After Construction. Under this option, the City Council may approve the sale of bonds secured solely with PID assessments to reimburse eligible costs once a minimum of 50% of the planned residentiallcommercial construction is at full completed value. If the project is built in phases, bonds may be sold for each phase. The comparative size of each phase must be acceptable to the City. A minimum of 50% of the planned residentiallcommercial development of each phase must be constructed and accepted by the City of Denton at full completed value before bonds may be sold. Financial security of the developer and feasibility of the project will be reviewed by the City's financial advisors and bond counsel to ensure viability of the project and that PID assessment funds are sufficient to retire the bond debt. The minimum percentage of completion may be reduced if the City believes the financial feasibility report justifies the reduction in completion percentage. The term may not exceed 30 years for capital expenditures. Operation and Maintenance PIDs may be ongoing. Section 4 -Assessment Cap The City Council must consider an assessment amount at the time a PID is created. Assessments should not exceed $0.40 per $100 valuation regardless of whether the project is within the City limits or the City's ETJ. The assessment may be less than $0.40, and the City Council may even consider an amount higher than the recommended $0.40 cap if they believe it is in the best interest of the community. Section 5 -PID PetitionlDocumentation Developers requesting a PID are required to submit a completed PID petitionlapplication to the Economic Development Partnership Board (EDPB}. The EDPB will review the proposal and make recommendation to City Council. The application will provide the following: A. Description of the development that clearly defines the elements of the project that exceed the Denton Development Code and how those elements of the project will be measured. B. Documentation that the project provides a desired product that is not available or is limited within the city limits or the ETJ. C. Detailed project financials and developer financial information to ensure the viability of the company. If the developer has participated in previous PIDs, success of previous PIDs must be demonstrated. D. Developers must declare whetherthey will hold ownership of the residential property within the development or sell sections/lots to builders, and the proposed timing of the sale of such sections/lots. E. Sample documentation to be provided at the time of sale that clearly discloses the existence of the PID, the amount of the assessment, options for payment, and liability to owner should assessment become delinquent. F. Project financial documents must include payment for City of Denton administrative costs. G. Project financial documents must declare the party responsible for maintenance of the improvements and describe how maintenance will be funded. If an element of the PID funds operation and maintenance, a list of improvements supported by PID funds must be provided. H. Project financial documents must include payment for administrative and reasonable legal costs that may be incurred by the City to foreclose on any property within the project for non-payment of PID assessment. Section 6 -Administrative Costs The PID documentation must provide for the reimbursement of the City's on-going administrative costs relative to reviewing, preparing, auditing the feasibility report, preliminary costs estimates, five-year service and assessment plan and assessment roll. PID applicants must submit a $2,500 deposit at the time of the application request to be applied toward administrative costs. The City will track costs and refund any excess monies once the PID has been established. It may be necessary for applicants to provide additional funds. AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 Questions concerning this acquisition maybe directed DEPARTMENT: Materials Management to Tom Shaw 349-7133 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding atwo-year contract for the purchase of water and sewer parts for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (Bid 3730-Two-Year Contract for Water and Sewer Warehouse Inventory awarded to the lowest responsible bidder for like items, or by section, in the annual estimated amount of $800,000). The Public Utilities Board recommends approval (5-0). BID INFORMATION This bid is for miscellaneous items that are stocked in the Warehouse for ease of accessibility to be used by the Water and Wastewater departments in their daily operations, and for repair and maintenance of their distribution and collection systems. Materials will be ordered on an as needed basis to maintain appropriate stocking levels. Bidders offering lower prices for items were rejected for failure to meet specification, or like items were awarded to the lowest bidder overall for efficiencies in the ordering process. Due to the volatility of prices, PVC and brass item prices maybe adjusted quarterly as market conditions change. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its June 1 1, 2007 meeting. RECOMMENDATION In order to create efficiencies in ordering, receiving, invoicing and payment, recommendation is to award to the lowest responsible bidder for like items or by section as listed in Exhibit A. The vendors and item numbers to be awarded are listed below. TtP,m N»mhPr VPnr~nr Items 1,2,6,7,11,14,16-22,95-108,140-155,195-199,201,202, Ferguson Water Works 204-209,213-227,253-259,263,264 Items 3-5,8-10,12,13,15,23-36,76-80,82-89,128,129,134-136 D&W Utility Supply 229-234,235A Items 38-41,58-75,81,109-127,130-133,156-169,181, Techline Pipe 182,185,186,228,233A,234A,235,236,237,238,239-252 Agenda Information Sheet June 19, 2007 Page 2 RECOMMENDATION(CONTINUED) Items 3 7,42-57,90-94,170-180,183,184,187-194, Eagle Underground Utility Supply 200,203,210 Items 260-262 Texas Water Products Items 13 7,13 8,13 9,21 l ,and 212 will not be awarded at this time. PRINCIPAL PLACE OF BUSINESS Ferguson Water Works D & W Utility Supply Techline Pipe McKinney, TX Waxahachie, TX Dallas, TX Eagle Underground Utility Supply Texas Water Products Dallas, TX Ft. Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a two-year contract with the option to renew for additional one-year periods. At renewal, the bid prices maybe adjusted in accordance with a federal index for related items. FISCAL INFORMATION The items in this bid will be funded out of the Warehouse Working Capital account and charged back to the using department. Respectfully submitted: ~.~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Bid Tabulation 1-AIS-Bid 3730 ~~ L a a °a m ~ 0 ul ~~~ ao +~+ M N M M N lD L.t1 N ~ f~ O O M O O ~n ~ N ~ ~ ~ ~ M O ~ a ~u 3 ~ o X O ~ O ~i ~ O ~ ~ ~D ~ ~ N ~ ~ ~ ~ ~ n ~ 10 ~ M N ~ ~ O O Z a = Gl 7 ~ ~ c ~ O ~ ~ N ~ ~ O O l0 O ~ ~ ~ O N O O~ O~ *~ O W 3 ++ ~ ~ ~ ~ ~ ,~ ~ ~ ~ ~ ~ ~ ~ N ~ N ~ p ~ ,~ ~ p ~ ~ ~ ,~ ~ ~ ~ ~ N ~ N ~ ~ ~ M ~ ,~ ~ pp ~ ,~ ~ ,~ ~ ~ 3 ~ ~ ~ ~ ~ 3 a ~ M o ~n ~n o o ~n o ° ~ o o ° ~ -~ N ' : -~ -~ ~ -~ o 0 O 0 O ~ 0 ~ ~ 01 Lf~ l0 OJ N N M O O Lf~ ~ m ~ ~ ~ ._ ._ ._ ._ O Z ~ ~ ~ w dl ++ ~ O ~ M ,~ In ~ Q1 ~ O O ~0 N N N l0 O ~ f~ lD CO '~ ~ ~ 0 ~ N 0 0 O 0 ~ O O O W ~ 'G . ~ ~} ~ fPr fPr ~} ~ fPr fPr ,~ ~ ~ fPr ,~ fPr ~} Z ~ ~ Z Z Z Z ~ ,~ fPr ,~ ~ ?? ~ 0 C ~ ~ ~ ,~ O N O N In ~ In O ~ ~ -p ~ -p -p -p -p ~ ~ °O ,_ ~ ~ ~ ,~ M 00 +~ ~ Q~ O 11~ ~ O M m ~ Q m m m m ~ N N O Z u a O ~ M ,~ ~ Lr1 0~ ~ O l0 Ln N N N L.f~ ~ ~ lD ~ CO '~ ~ ~ 0 ~ Z O O O W ~ ~ ,~ ,~ ~ Z ~ Z Z Z Z O L ~ u ~ O f~ O Ll1 O Lf~ O L.f~ ~ O L1') ~ Ll~ Ll1 Lf1 N ~~p' O O O O O M ,~-~ ~ l0 O +~ f~ 0~ Lt1 0~ ~ ~ ~ ~ ~ ~ O O O O 00 Z 3~ 3~ N M t~ O +~ lD N ~ ~ O O O O ~ ~ "~ M Lf1 M M ~ O O W ~ 0 ~ ,~ Lr1 ~ ~ N N l0 ,~ ~ '~ ,~ ~ ~ ~ N N ~ N N O ,~ ,~ ~ ~a ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ,~ ~ ~ ~ ~ ~ ~ ~ ~ ~ OG 0 ~ ~ ~, ~ u I,1'l O +~ O O O ~ 0~ ~ O CO ~ N O ~ ~ ~''? 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O ~ O L17 Lf'1 ~ ~ L17 O ~ O L(1 ~ Lf~ 3 ~ ~ X ~ ~ O N ~ ~ ~ N n ~ M 0~ f~ Ln ~ 00 0~ ri ~ '~ N Lf') ~ CO 00 M l0 Z ' ~ 3~ ~ ~ N '~ O N O N (,'1 +~ N ~ +~ M ~ ~ CO N '~ N ~ n O '~ t0 '~ ~ p p '~ ~ ~ N '~ N W ~a ~ ~ tPr ~ ~ ~ t~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ = ai p ~, s 'o ~ -o -o -~ ~ -o -o -a ~ -~ -o 'o -~ ~ -o -o -~ ~ -o -~ -a ~ ~ -o 'o -~ ~ ~ a s X m m m m m m m m m m m m m m m m m m m m m m m m m m m Z ~,, ~~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W V1 ~ Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z ~ ~ D L ~ M l0 ~ M f~ N ~ +~ O l0 Q~ O I.1'l ~ ~ +~ M N OJ M ~ In O l0 O l0 r~ ~ 3 3 = X = M M l0 l0 ~ ,~ In O ~ N p M O ~ M ~ N ~ ~ ~ N ~ CO O ~ ~ ~ Z L ~ ~ Y F ~1 O N N O ~ N M r~ M L.f) 00 OJ ~ +~ ~ p N OJ I~ O ~ ~ ~ O l0 N ,~ N N ~ ,~ N ,~ ,~ N ~ N ,~ ,~ ~ ~ ~a x rn p i s r u~ m m m m oo m m m oo m m m m oo m m m oo m m m oo m m m m o0 Z '~ E f ~- ,~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W U 3~ ~} Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z O ~ 41 ~ O ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ p~ N O O O O ~ Q > ,~' of ~ m m m m m m m m m m m m m m m m m m m 0~ N ~ Lf1 L1~ ~ m Z oa `~ ~ o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ ~ ~ ~ ~ ~ o W ~~ C ~ Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z ~ ~ ~ ~ ~ ~} Z ~ g Z ~_ + + ~ ~ Z ~ ~ N N O Q ~ (n ~ Q W ~~ Q ~ ~ N M d0 W ~ Q ~ ~ X W = ~ N M 00 X X X N Q ~ Q Q ~ ~ W ~ (q X X X - - - ~ (n ~ ~ m ~ ~ M = ~ J Q = = ~ ~ ~ ~ (n W m O m m ~ 2 J - - - - - ~ r r r ('~ M M ~ ~ ~ O 07 ~ O ~ ~ J ~ Q N ~ t~ N ~ O - - m ~ ~ ~ ~ ~ ~ M ,_ ~ O X ~ ~ Q J ~y X X X X X N N ~ ~ ~ W W W W W W N _ ~ X ~ X X ~ Q X ~ ~ ~ its icy ~ X X X X tD X ~ W ~ W ~ W ~ W ~ W ~ W ~ m Z r r (V (V m M r N M ('7 (+') r r r r r r N N ~ J ~ ~ ~ ~ ~ W W W W W W W W W W W W W W W W W W W W m 0 a O O O O O J J J J J J J J J J J J J J J J J J J J 0 ~ m m m m m a a a a a a a a a a a a a a a a a a a a ~ O a a a a a a a a a a a a a a a a a a a a J ca ~ w w w w w z z z z z z z z z z z z z z z z z z z z a ~ a a a Q a a a Q a a a Q Q a a a Q a a a Q a a a a Q a a ~ ~ a w w w w w w w w w w w w w w w w w w w w w w w w w w w ~ ~ 'u ~ ~ ~ ~ 'i ~ ~ O M t0 ~ ~ ~ ~ ('~ f~ CO N t0 N ~ 00 I~ O O ~ O N ~ ~ O o0 _~ a O ~ N ~ N ~ ~ N N N ~ r ~ ~ ~ N O O ~ O ~ ~ ~ ~ ~a~ w L ~~ ~ O O O O O O O O O O O O O O ' N O O O O O O O O O N O N ~ = 3 O O l~ ~ ~ f~ N ~ f` tD ~ f` N ~ f~ O ~ f~ ~ (D f` N tD f` ~ f~ f~ (D (D f~ I~ tD I~ 00 t0 f` N f` f` ( ~ f~ f~ f~ f~ f~ O CO f` O f` f` o0 f~ f~ ~ f~ f~ cD f` f` ~ ~ In N ~ In (D ~ In ~ ~ l!') ~ ~ lf') N r N O Op f~ Z Q Y p v O O O ~ O ~ O ~ O r O ~ O ~ O ~ O r O ~ O ~ O ~ O ~ O ~ O ~ O ~ O ~ O r O ~ O ~ O O O O O O O O O O O O O ~ U 0 00 cD t0 tD tD cD cD cD (D cD cD t0 t0 cD cD t0 tD tD cD cD ao 00 00 0~ ao ao tD O ~ N C4 ~ ~ tD f~ 00 O O ~ N ('~ ~ LC) tD f~ 00 O O ~ N ~ ~ In tD ~ In l!) lf') In In l!') lf') In In lf') tD t0 t0 tD (D CO tD tD (D tD f~ f~ f~ f~ f~ f~ f~ ~ N ~ L ~ ~ +~+ N O O O O O 0~ ~ ~ ~ ~ O ~ ~ ~ O O ~ ~ l0 O ri ('~ N ~ ~ N O p '~ 3 a. ~ X ~ ~ '~ ~ ~ ~ rn rn o rn ,~ ~ N rn o o rn ~ ~ rn ~ ~ rn o rn ~' ri Z ' ~ a. = 0 3 0 ~- F ~ O O f ~ 0~ O ('~ ,~ ,~ ,~ M ~ O N ~ M ~ ~ ~ ' l0 O N Lr1 ~ O ~ ,~ ~ ~ ,~ ,~ ~ ~ ~ ~ ,~ ,~ ,~ ~ ~ ,~ !~ ~ ~ +~ N ( ~ ~ ~ N N ,~ ,~ N ~ ~3 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ 3 ~ 0 a Gl 0 ~ O GO Ili O ' ' lD f~ N ,~ ~ N ~ N l0 N ~ O N O LP) O ~ O O O ~ _ -p ,_ 'p - M N O ('~ O L17 ~ Ll~ O l0 ~ Q L ~ U1 Ln ~ L(1 ( ' 1 I~ L(1 I~ O +~ O l0 L(1 m m m . ~ Z ~ ~ ~ ~ N ~ I~ ~ O N ,~ O O O +~ ~ ~ N ~ N O ~ O 0 0 N In ~ O M O W w a~ ±~ _ ~ ~ ~ ~ ~ ,-I ,-I ~ ~ rl ,--I ~ ~ ~ N ~ ~ ~ ,-I Z Z Z N N ,-I ,-I N ~ ~ _ +~ >> O c ~ f~ N ~ f~ ,~ ,~ ~ ~ ~ ~ ~ oo tD M Q~ N ~ ~ ~ ~ ~ ~ O ~ M ~ ~ '- ~ l0 ~ ~ 0~ O O m O ~0 t0 III ~ N ~ ~ N ~ ~ _ m _ m _ m ~ ~ '~ ~ _ m _ m Z v a ~ M O ~ ~ ~ ~ 0 0~ O ~ N ~ O N E ('~ ~ ~ O 0 0 M ('~ N N 0 0 W ~ ~ ~ ~ ~ ~ ~ ~ Z ~ ~ ~ +ft ~ ~ ~ ~ ~ ~ ~ Z Z Z ~ ~ ~ ~ Z Z ~ ~ L ~ *' ++ O O O O O O O O O O O ~ O Lf~ ~ O O Lf1 L(1 O O O In O O O O Q ~ 3 CX N (~ O 0~ 0~ O I~ O O O 0~ N ~ N N I~ lD ~ ~ ~ O O N O l0 ~ N Z '0 ~ 3 ~ ~ ~ N ~ O O ['~ ,~ ,~ ,~ N ~ O O O (''~ (~'~ N O ' +~ O (''1 ~ Lr1 0~ ~ CO 0 ~ ~ ~ ~ ~ ~ ~ ,~ ,~ ,~ ~ ~ ~ M ~ ~ ,~ N ( ~ ~ ~ N N ,~ ,~ N ati ~a ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ = ai 0 ~, s -o ~ -o -o -~ ~ -o -o -a ~ -~ -o -o -~ ~ -o -o -~ ~ -o -~ -a ~ ~ -o -o -~ Q ~ a s X m m m m m m m m m m m m m m m m m m m m m m m m m m m Z ~,, ~~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W V1 ~ Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z ~ ~ D ~ G ~ ~' ~ ~ ~ O ~ N ~ ('~ ~ ~ (~ ~ ~ N = X O I~ ~ N O ('~ N O O O ('~ ~ ' Z L ~ ~ !~''l l0 ~ O ~ O ('~ O N N N ~ Q1 O Ln ('~ O ~ In O 00 ~ ~ ( N ~ N O W ~ ~ V ~ ~ ~} ~} ~ ~ ~ ,~ ~ ,~ ~ ~ ~ N ~ ~ ,~ ,~ ,~ N ~ rl N ,~ ,~ N CO C ~ H ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Ln l0 ~ l0 OJ N Q ~ ~ 0. '~ m m m m m m m m m m m m m m m m m m m m m O ('~ N [~'~ M ~ Z ~ o .- ~ 0 O 0 0 0 O 0 0 0 O 0 0 0 0 O 0 0 0 O 0 0 N ~ ~ ~ N O W U 3~ Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z ~ ~ ~} ~} ~} ~ ~ 0 ,- ~ ~ -o ~ -o -o -~ ~ -o -o -a ~ -~ -~ -o -~ ~ -o -o -~ ~ -o -~ ~ o o ~ o 0 Q a > ,_ of m m m m m m m m m m m m m m m m m m m m m N O Lr1 ~ ~ O Z ~~ ~ 0 O 0 0 0 O 0 0 0 O 0 0 0 0 O 0 0 0 O 0 0 N N ~ ~ N ~ W 0 C Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z ~ ~ ~} ~} ~} ~} ~ g X ~ W W J (V ~ = ~ X ~ M ~ N N J Q ~ J r N M a ~ ~ X r x X ~ ~ ~ ~ Q ~ W a r z z z a a _ a Z Y 0 r N N ~j r _ r M X ~ W ~ ~ 0 0 0 ~ ~ U Q ~ r r X X X X ~ ~ ~ N ~ (~ (~ N r r ~ M ~ ~ N N ~ m Z Z Z Z Z Z Z r (n (n r N N (A W ~ W ~ W ~ W ~ W ~ W ~ W ~ > ~ W ~ ~ ~ ~ ~ ~ = N J _ fA _ _ (n _ _ (A _ fA _ (A _ (!~ _ _ (n ~ _ cn ~ cn ~ cn ~ cn ~ ~ ~ ~ ~ ~ ~ ~ a N M r N O O O W W W W '~ (~ (~ (~ m m m m m m m m (/~ (~ (~ m m m m U U U J J J J a ~ s ~ 3 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ cn cn cn C~ (~ (~ (~ (~ (~ (~ (~ (~ C~ C~ 0 0 m W W W W W W W W ~ ~ ~ ? ? ? ? Z Z Z Q a a Q ~ m m m U U U U U U U U m m m J J J J J J J o c~ c~ c~ > > > > > > > > a a a a a a a a a a a a a 0 0 0 0 0 0 0 o w w w ~ ~ ~ ~ ~ ~ ~ 0 0 0 0 0 0 u J J J W W W W W W W W W W W 0 0 0 0 0 0 0 ~ ~ ~ ~ ~ ~ ca a a a ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U U U U U U U cn cn cn cn cn cn ~ a a a Q a a a Q a a a Q Q a a a Q a a a Q a a a a Q a a ~ ~ a w w w w w w w w w w w w w w w w w w w w w w w w w w w ~ ~ 'u ~ ~ 3~ 'i ~ N N ~ N ~ O N W W O ~ ~ ~ ~ N ' ~ O N N ~ N ~ O N ~ N _~ a N M In N N ~ ~ r N ( ~ ~ ~ ~ ~ C~ N N ~a~ w L ~~ ~ ~ N O O O O O O O O O O O O O O ' O O O O O (`') N O N O O ~ r 3 O 00 ~ O ~ ~ ~ a0 ~ N a0 ~ ~ O ~ O O ~ O O ~ tD O ~ N O ~ ~ O ~ I~ a0 ~ N O ao ~ O ao O ~ 0o (D N c~ lf ) N c~ 00 N ~ O ~ ~ o0 ~ c~ O N c~ N ~ c~ O O rn O O ~ O O ~ O O rn O r rn l~ N rn Z Q Y p v O ~ O ~ O ~ O ~ O r O ~ O ~ O ~ O r O ~ O ~ O ~ O ~ O ~ O ~ O ~ O ~ O r O ~ O ~ O ~ O r O ~ O ~ O ~ O ~ O ~ V 0 tD (D t0 tD tD (D tD tD (D (D tD t0 t0 tD (D t0 tD tD (D tD tD (D (D (D t0 t0 tD f~ o~ O O ~ N c~ ~ ~ (D I~ a0 O O ~ N c4 ~ ~ tD f~ 00 O O ~ N c~ ~ f~ f~ f~ 00 00 00 00 00 00 00 00 00 a0 O O O O O O O O O O O O O O ~, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N N ~ L ~ ~ ~ CO ,~ ,~ O~J 10 ~ '~ ~ ~ Ln OJ CO L17 M L11 Lf1 l0 ~ ~ O D 'u 3 a. ~ X rn o ~ ~ ~ ~ o ~ ~ ~ ~ rn o ~ N ~n M ~n ~ ~ o °i ~ o N a Z L a = Gl F ~- ~ Q1 M Ll1 OJ O 0~ O ~ ~ M f~ M M 0~ 0~ 0~ l0 ,~ N OJ ,~ N M ,~ Z Gl 3 ~ ,~ ~ M ~ ~ ~ N ~ N ~ ~ ~ ~ ~ ~ ~ l0 ~ l0 ~ l0 ~ ~ ~ ~ ~ O ~ ~ ~ ~ ~ ~ ~ ~ 3 ~ ~~ ~ 3 a ~ O u~ O lD O ~ O ~! -p -p N ~ ~ ~ ~ O O ~ ~ ~ '~ O O O O °~ Q ~ 0 ~ ~ ui ~ N l0 0~ O M O m •- m •- m ~ ~ ~ ~ ~ ~ l0 l0 O f~ m O O V7 O m Z ~ ~ L ~' ~ I~ O N ~ O O O ~ ~ O 0 N ~ ,--i ,--i ~ ~ ~ ~ '~ N O N M M N ~ W W~~ ~ ,~ M ~ N N ~ ~ Z Z ~ O l0 ~ ~ ~ O Q~ Z ~ ~ ~ ~ N C ~, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ t~ >> O c H ~ ~ ~ ~ ~ ~ ~ ~ ~ O ~ ~ O ~ ~ ~ In ,~ O tD ~ ~ m m Q m m ~ O O O m M l~ M N Q Z chi a N ~ N O O O N Z 0 0 ~ ~ O O ~ ,~ N ~ l0 O O ,-i ,~ N +--i z W ~ ~ ~ p ~ ~ ~ ~ Z Z ~ Z Z ~ ~ ~ ~ ,~ ~ ,~ ~ ,~ ~ ,~ ~ ,~ ~ ~ ~ Z ~ ~ ~ ~ O L *' ~ ~ *' t ++ Ln O O O Lf1 O ~ O ~? ~ M ~ M Ln L1~ Lf•~ L17 O L!"1 Lf•1 L(1 ~ ~ ~ M O O O O I.1'l O C u 3 ~ ~ X ,-I L17 O 0~ l0 l0 ~ ~ ~ OJ CO ,-I f~ f~ I~ 0~ 0~ ~ I~ ~ '~ O ~ O ~ Ql N ~ Z '0 ~ 3 F l0 ~ ~ ~ Q1 O 0~ L.t1 L!') ~ OJ M M ,~ 0~ O I~ '~ M Ln ~ Lr1 ~ ,~ W ~ ~ i ,~ M ~ N N ,--~ fPr rn ,--~ ,--~ ~ l0 l0 t0 00 f~ 0~ ~ ,--~ ~--~ ,~ fPr tPr tPr fPr N ~ ~a ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O ~, _ ~; ~ a~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0~ l0 0~ l0 O ~ ~ ~ ~ 1~ N +~ M l0 I11 N ~ O O ~ ~ ~ a p 7 a ~ X m m m m m m m m ~ ~ O N O O 0~ ~ n ~ ~ 10 O ~ ~ ,~ ~ o Z a ~ Z F o O O ~ +~ ~ l0 N ,~ M O ,~ M ~ ,~ N ~ ,~ rn W ~ Vl ~ K ~ Z Z Z Z Z Z Z z '~ fPr '~ {ft ~ ~ ~ ~ ~ ~ ~ '~ ~ '~ ~ '~ ~ ~ ~ ~ ~ ~ N N ~ ~ N _ ~ ~' ~ ~ N f~ 0~ t0 ,~ ~ N ,~ ,~ O M ~ ~ ~ f~ N N ~ O O M o Q ~ 3 = X ~ O N ,~ ,~ ~ M rn O O M ~ ~ l0 ~ M l0 t0 0 ~ O -i N ~ ~ N Z ~ L ~ = F Y ~ ~ ,~ ~ ~ l0 N N O O N ~ ,~ ,~ ~ ~ ~ ~ '~ N O ,, N M ~ +~ ~ W ~ dl *' u ,~ M ~ N N ~ +~ O O M M ~ O l0 ~ ~ ~ O p1 ,~ ~ ~ ~ ~ ~ ~ ~ N O ~ ~ ~~ ~ N M N N ~ ~ ~ ~ ~ ~ O ~ L11 ~ ~ ~ ~ ~ ~ ~ ~ ~' ~ ~ ~ ~ ~ l0 ~ ~ 0~ Q O O m m m ~ N ,--i N m m m m m Q Z ~ ~ ! f~ N I~ ~ ~ ~ ~ z ~ ~ 0 0 0 M N O O ~ ~ ~ 0 O O 0 0 z W U ~ ~ ~ ~ ~ ~ ~ ~ ' ~ ~ Z Z Z ~ ~ ~ ~ , ~ ~ ~ Z Z Z Z Z ~ O ~ ~ ~ ~ O O O O O O O O -p -p O O Ili O ~ O O ~ O O O ~ .O .O ~ ~ ~ p > a ~; l0 M L.f~ O ,~ rn Q •- m •- m ~ ~ O CO ~ ~ ~ O •- m •- m •- m •- m •- m a Z , p a ~ ~ - Lfl ,~ CO M N ~ Lll N OJ N M O O ~ z O 0 N ~ ~ ~ ,~ ~ ,~ l0 ~ ~ ~ ~ n O ~ ~ '~ '~ ~ N 0 O O 0 0 ~ z ~ ~ W U U Y ~ ~ + Q ~ m °0 ~ ~ ~ ~ U U (A N N ~ (n fA (A (A (n (n (A (A (A (A W D ~ ~ ~ ~ ~ 0 a X Q Q ~ Q Q Q Q ~ ~ ~ ~ ~ ~ '~ ~ N ~ O U O U ~ ~ m ~ ~ ~ ~ m m m W ~ ~ w ~ ~ ~ a ~ W M _ m m ~ m m m m - > w ~ w ~ ~ ! d =I ~ J X X r N M ~ N r N X X X J U Q U Q ~ ~ ~ Q W O O X X X X X X X O N N Q LL Q _ ~ ~ ~ M ~ ~ W N N ~ ~ O O O 00 O ~ ~ ~ ~ J J J ~ ' a m m m m J ~ ~ a a a a a a a a ~ d ~ ~ J J J ~ ~ ~ ~ ~ ~ ~ J Q Q Q Q Q Q Q Q Q Q Q Q ~ LL LL LL m U U U U U m w w w w w w w w w w w w w ~ ~ ~ ~ ~ ~ .. .. .. .. .. 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Z ~~ u~ ~ z } W fU 3~ ~ ~ ~ X ~ ~ H ~ p Z ~ a ~ ui ~ cn } ~ ~ } ~ W ~ ~ N ~ ~ D N s 0 m 0 ~ 0 ~ L m ~, O N 'C ~ ~~ O ~ s ~ a ~ ~ .. ~ ~ c~ .N L ~_ ALA'' W rw Y/ 3 ~ ~ m ~ ~ 0 a~i ~ c~ ~ ~ ~ u c~ c Q c~ a ~z o - ~ ~ ~ ~ s ~ ~ ~~~ ' ,_ u _ ~ o ~z ~~~ = f0 .- L C a~ ~ ~_~ wad a ~ ~ ~ L W W } ~ Q~ ~ ~ (~ N_ ~L r~ ~ s ~ Z ~ ~ ~`' ~ Y ~ c (~ 0 r ~k o ~ U o U ~ +, ~ ~ ~ ~ ~, L .N p ~ . L ~ ~ 0 ~ N ~ ~ ~ = D m U Q Q ~_ N U 4 ~ = U (0 ~ ~ o ~ ~ U U ~~ ORDINANCE N0. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING ATWO-YEAR CONTRACT FOR THE PURCHASE OF WATER AND SEWER PARTS FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3730-TWO-YEAR CONTRACT FOR WATER AND SEWER WAREHOUSE INVENTORY AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR LIKE ITEMS, OR BY SECTION IN THE ANNUAL ESTIMATED AMOUNT OF $800,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO VENDOR AMOUNT 3730 1,2,6,7,11,14,16-22,95-108 Ferguson Water Works Exhibit A 140-155,195-199,201,202, 204-209,213-227,253-259,263,264 3730 3-5,8-10,12,13,15,23-36,76-80, D&W Utility Supply Exhibit A 82-89,128,129,134-13 6,229-234,23 SA Exhibit A 3730 38-41,58-75,81,109-127,130-133 Techline Pipe Exhibit A 156-169,181,182,185,186,228, 233A,234A,235,236,237,238,239-252 3730 37,42-57,90-94,170-180,183, Eagle Underground Exhibit A 184,187-194, 200,203,210 Utility Supply Exhibit A 3 73 0 260-262 Texas Water Products Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to pur- chase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION 3. Should the City and the winning bidder(s) wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER VVALTERS, CITY SECRETARY BY: 3-ORD-BID 3730 Exhibit A BID #3730 DATE: April 17, 2007 Two-Year Contract for Water and Sewer Warehouse Inventory Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX SECTION A: 1 89040010 44 EA BOX VALVE EXTENSION 24" $41.04 2 89040020 191 EA BOX VALVE LID $12.24 3 89040036 105 EA BOX VALVE RISER 1 1/2" W/SET SCREW $55.71 4 89040035 101 EA BOX VALVE RISER 1" W/SET SCREW $49.90 5 89040005 482 EA BOX WATER METER 34-A SHORT $50.00 6 89040000 156 EA BOX, VALVE BASE $25.20 7 89040030 244 EA BOX, VALVE TOP SECTION 10" $20.88 8 89040050 327 EA BOX, WATER METER 34-B LONG $51.89 9 89040040 62 EA BOX, WATER METER 55A $117.35 10 89040060 49 EA BOX, WATER METER LID 55A&548A $49.10 11 89040025 532 EA BOX, WATER METER LID FOR 34A/ $17.90 12 89040100 53 EA BOX, WTR METER 548A $105.89 13 89046000 68 EA KEY, WATER METER BOX ,BRASS $6.42 14 89046050 10 EA KEY, WATER METER BOX FORD $6.70 15 89040026 2100 EA LOCK & SPRING, METER BOX LID $7.57 SECTION B: 16 89030051 14 EA MANHOLE RING, PLASTIC 24" X 2" $19.50 17 89030054 27 EA MANHOLE RING, PLASTIC 24" X 4" $39.00 18 89030052 7 EA MANHOLE RING, PLASTIC 24"X1.5" $19.50 19 89030053 5 EA MANHOLE RING, PLASTIC 24"X1.5" $19.50 20 89030000 46 EA MANHOLE, LID 300-24 $85.54 21 89030010 54 EA MANHOLE, LID 400-24 $105.00 22 89030024 55 EA MANHOLE, RING 400-24 $101.16 23 89030039 4 EA MANHOLE, RISER 300X241 112" $158.92 24 89030037 6 EA MANHOLE, RISER 300X24 2112" $167.57 25 89030038 4 EA MANHOLE, RISER 300X24 2" $160.00 26 89030045 6 EA MANHOLE, RISER 300X24 4" $255.68 27 89030047 12 EA MANHOLE, RISER 300X24 6" $281.08 28 89030034 3 EA MANHOLE, RISER 400X241 112 $170.81 29 89030040 5 EA MANHOLE, RISER 400X241" $170.81 30 89030032 2 EA MANHOLE, RISER 400X24 2 314" $183.78 31 89030033 5 EA MANHOLE, RISER 400X24 2" $170.81 Page 1 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 32 89030030 4 EA MANHOLE, RISER 400X24 3" $183.78 33 89030031 5 EA MANHOLE, RISER 400X24 4" $255.14 34 89030035 14 EA MANHOLE, RISER 400X24 6" $278.92 35 21062200 251 EA GASKET, RAM NEK FLEXIBLE 42" $8.00 36 67006020 76 EA SEALER MANHOLE $25.00 SECTION C: 37 67039980 4 EA SLEEVE TAPPING 12" X 12" $854.20 38 67039340 7 EA SLEEVE, SOLID MJ 12" X 12" $82.34 39 67039220 4 EA SLEEVE, SOLID MJ 4" X 12" $25.21 40 67039260 25 EA SLEEVE, SOLID MJ 6" X 12" $38.61 41 67039300 16 EA SLEEVE, SOLID MJ 8" X 12" $50.74 42 67039750 1 EA SLEEVE, TAPPING 10" X 6" SS MJ $375.65 43 67039900 5 EA SLEEVE, TAPPING 12" X 6" SS MJ $386.75 44 67039950 9 EA SLEEVE, TAPPING 12" X 8" SS MJ $542.75 45 67039660 9 EA SLEEVE, TAPPING 6" X 6" SS MJ $341.97 46 67039650 14 EA SLEEVE, TAPPING 8" X 8" SS MJ $471.18 47 67039600 13 EA SLEEVE, TAPPING 8"X6 " SS MJ $350.70 48 67040800 11 EA MEG-A-LUG GLAND KIT 12" $63.54 49 67040600 25 EA MEG-A-LUG GLAND KIT 4" C-900 $20.73 50 67040650 94 EA MEG-A-LUG GLAND KIT 6" C-900 $27.00 51 67040700 26 EA MEG-A-LUG GLAND KIT 8" C-900 $34.25 52 67082175 5 EA BOLT SET FOR 4" TAP VALVE $3.10 53 67082174 5 EA BOLTIGASKET SET-12" FLANGE PK $15.40 54 67082170 8 EA BOLTIGASKET SET-4" FLANGE PACK $4.50 55 67082171 62 EA BOLTIGASKET SET-6" FLANGE PACK $6.55 56 67082172 16 EA BOLTIGASKET SET-8" FLANGE PACK $6.60 57 67052160 12 EA CLAMP FULL CIRCLE 12" X 7.5" $54.30 58 67052180 18 EA CLAMP FULL CIRCLE 2" X 15" $46.26 59 67052050 44 EA CLAMP FULL CIRCLE 2" X 7.5" $23.13 60 67052060 5 EA CLAMP FULL CIRCLE 2.5" X 7" $24.20 61 67052200 5 EA CLAMP FULL CIRCLE 4" X 15" $49.02 62 67052080 5 EA CLAMP FULL CIRCLE 4" X 7.5" $28.59 63 67052220 123 EA CLAMP FULL CIRCLE 6" X 15" $55.48 64 67052100 116 EA CLAMP FULL CIRCLE 6" X 7.5" $31.01 Page 2 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 65 67052120 37 EA CLAMP FULL CIRCLE 8" X 7.5" $36.42 66 67052240 54 EA CLAMP FULL CIRCLE 8"x15" $64.43 67 67044727 30 EA CLAMP, SNAP 40" $2.67 68 67044730 100 EA CLAMP, SNAP, 48" $ 3.30 69 67052280 22 EA CLAMP,FULL CIRCLE,12"X15" $82.88 70 67052440 5 EA CLAMP,REPAIR,11/2" $4.29 71 67052400 11 EA CLAMP,REPAIR,1" $3.87 72 67052460 12 EA CLAMP,REPAIR,2" $9.23 73 67052380 8 EA CLAMP,REPAIR,314" $3.53 74 67052580 2 EA CLAMP,S.S.6"X1"TAP $40.81 75 67052620 2 EA CLAMP,S.S.8"X1"TAP $46.62 76 67082530 4 EA VALVE FL-MJ 12" NON THREADED $972.48 77 67082500 64 EA VALVE FL-MJ 6" $324.36 78 67082510 16 EA VALVE FL-MJ 8" $506.86 79 67070080 6 EA VALVE GATE 1 112" $26.00 80 67070040 4 EA VALVE GATE 1" $14.00 81 67070100 22 EA VALVE GATE 2"-BRASS(NIBCO ONLY $65.00 82 67082030 5 EA VALVE GATE FL 4" W/WHEEL $251.98 83 67082000 26 EA VALVE GATE FL. 3" W/INHEEL $225.49 84 67082160 12 EA VALVE GATE MJ 12" W/O ACCESSORIES $1,019.25 85 67082080 1 EA VALVE GATE MJ 4" W/O ACCESSORIES $254.31 86 67082100 29 EA VALVE GATE MJ 6" W/O ACCESSORIES $324.37 87 67082120 35 EA VALVE GATE MJ 8" W/O ACCESSORIES $516.61 88 67082400 1 EA VALVE TAPPING 12" W/0 ACCESSORIES $1,531.58 89 67082200 4 EA VALVE TAPPING 4" W/O ACCESSORIES $320.83 90 67070120 61 EA VALVE, BALL 2" FIP-FIP $118.62 91 67069600 12 EA VALVE, BALL 3/4-3/4 FL-IP $29.35 92 67069700 4 EA VALVE, BALL METER 1.5" $110.13 93 67069750 8 EA VALVE, BALL METER 2" $151.44 94 67069007 20 EA VALVE, DOUBLE CHECK 2" $175.00 SECTION D: 95 34060340 9 EA HYDRANT 2" 3'BURY 2.5 NOZZLE $928.69 96 34063080 3 EA HYDRANT EXTENSION 12" $248.45 97 34063090 1 EA HYDRANT EXTENSION 12"OLD STY $248.45 Page 3 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 98 34063018 1 EA HYDRANT EXTENSION 18" $292.65 99 34063006 1 EA HYDRANT EXTENSION 6" $212.78 100 34063060 2 EA HYDRANT EXTENSION 6"NEW STYL $212.78 101 34062060 10 EA HYDRANT FLANGE GASKET $8.14 102 34062140 5 EA HYDRANT MAIN VALVE-MUELLER $75.66 103 34063200 2 EA HYDRANT MAIN VALVE-WATEROUS $40.00 104 34062000 14 EA HYDRANT REPAIR KIT NEW STYLE $106.11 105 34063210 12 EA HYDRANT REPAIR KIT-BREAK FLNG $106.11 106 34060150 15 EA HYDRANT, FIRE 4' BURY $1,152.82 107 34060200 43 EA HYDRANT, FIRE 5' BURY $1,206.33 108 44591250 28 EA WRENCH, FIRE HYDRANT $18.65 SECTION E: 109 67039040 5 EA PIPE CAP MJ 8" $24.89 110 67039020 10 EA PIPE, CAP MJ 6" $15.63 111 67039080 6 EA PIPE CAP MJ 12" $47.23 112 67006010 20 QT PIPE COMPOUND SEAL + $21.82 113 67006000 308 QT PIPE LUBRICANT PVC $2.22 114 67039030 6 EA PIPE PLUG MJ 6" $16.91 115 67039050 1 EA PIPE PLUG MJ 8" $24.89 116 67025020 9 RL PIPE, POLY TUBING 2" X 100' $142.00 117 67025400 25 RL ENCASEMENT POLY 29 X 200' $47.64 118 67040550 5 EA BEND, DUCTILE 12" X 22112 CAST IRON $104.36 119 67040350 15 EA BEND, DUCTILE 12"X45 CAST IRON $104.04 120 67040400 6 EA BEND, DUCTILE 6" X 221/2 $36.70 121 67040200 45 EA BEND, DUCTILE 6"X45 CAST IRON $35.74 122 67040450 5 EA BEND, DUCTILE 8"X221/2 C.I. $55.85 123 67040250 21 EA BEND, DUCTILE 8"X45 CAST IRON $55.21 124 67058000 12 EA GLAND KIT M.J. 4" $8.13 125 67058010 332 EA GLAND KIT M.J. 6" $10.53 126 67058020 195 EA GLAND KIT M.J. 8" $12.76 127 67058040 137 EA GLAND KIT M.J. 12" $18.03 128 67036020 62 EA INSERT STIFFENER 1 112" $3.82 129 67036040 203 EA INSERT STIFFENER 2" $3.82 130 67044345 1 EA PLUG,PUSH IN FOR 8" DUCTILE $37.65 131 67044430 10 EA TEE, 6x6x6 (MJXFLXMJ) $77.23 Page 4 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 132 67044355 19 EA TEE, 8X6X8 (MJXFLXMJ) $111.06 133 67044360 22 EA TEE, 12X6X12 (MJXFLXMJ) $185.00 134 46077000 1 EA HOSE, SEWER FLUSH 1" X 500' $2,000.00 135 46077100 2 EA HOSE, SEWER FLUSH 3/4" X 500' $1,945.00 136 72006000 31 EA PUMP UTILITY WITH 6 FT. HOSE $34.26 SECTION F: 140 67037330 27 EA CONNECTOR WATER 1 1/2"MIP-PJ $19.81 141 67037060 25 EA CONNECTOR WATER 1 1/2" PJ-PJ $28.46 142 67037320 280 EA CONNECTOR WATER 1"MIP-PJ $7.90 143 67037050 97 EA CONNECTOR WATER 1" PJ-PJ $8.89 144 67037340 131 EA CONNECTOR WATER 2"MIP-PJ $28.86 145 67037350 26 EA CONNECTOR WATER 2" PJ-PJ $38.43 146 67037100 238 EA CONNECTOR WATER 3/4" IP-PJ $6.68 147 67037020 109 EA CONNECTOR WATER 314" PJ-PJ $8.15 148 89045020 66 EA COUPLING METER 2 BOLT 1 112" $56.58 149 89045040 97 EA COUPLING METER 2 BOLT 2" + $68.60 150 89045000 64 EA COUPLING METER EXPANSION 3/4" $9.33 151 67037410 163 EA ELBOW 1" X 90 BRASS F-F $6.36 152 67037420 8 EA ELBOW 1.5" X 90 BRASS $12.64 153 67037460 23 EA ELBOW 2" X 45 BRASS + $22.63 154 67037450 46 EA ELBOW 2" X 90 BRASS $20.57 155 67037400 7 EA ELBOW, BRASS 3/4X90 $4.12 156 67037610 51 EA NIPPLE 3/4"ALLTHREAD $1.26 157 67037620 136 EA NIPPLE 1"ALLTHREAD $1.86 158 67037740 41 EA NIPPLE, 2"X2"ALL THREAD $5.58 159 67037660 53 EA NIPPLE 3/4" X 2" $1.59 160 67037670 27 EA NIPPLE 3/4" X 4" $2.78 161 67037680 26 EA NIPPLE 3/4" X 6" $4.06 162 67037720 12 EA NIPPLE 1.5" X 2" $3.94 163 67037730 16 EA NIPPLE 1.5" X 4" $7.07 164 67037775 42 EA NIPPLE 1 112"X6" $10.45 165 67037690 71 EA NIPPLE 1" X 2" $2.30 166 67037700 18 EA NIPPLE 1" X 4" $4.03 167 67037780 27 EA NIPPLE 1"X 6" $5.94 168 67037750 60 EA NIPPLE 2"X4" $9.10 Page 5 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 169 67037760 66 EA NIPPLE 2"X6" BRASS $13.44 170 89045140 189 EA NIPPLE METER 1" X 2112" $7.00 171 89045150 99 EA NIPPLE METER 1" X 3" $9.20 172 89045160 42 EA NIPPLE METER 1" X 8112" $15.81 173 89045110 195 EA NIPPLE METER 314" X 21/2" $4.54 174 89045115 164 EA NIPPLE METER 314" X 3" + $5.50 175 89045120 891 EA NIPPLE METER 314" X 81/2" $11.68 176 67037802 8 EA PLUG BRASS 3/4" $1.90 177 67037804 24 EA PLUG BRASS 1" $2.50 178 67037805 2 EA PLUG BRASS 1 112" $4.78 179 67037810 5 EA PLUG BRASS 2" $7.55 180 67037820 33 EA REDUCER BELL BRASS 1 "X3/4" $5.30 181 67037910 2 EA REDUCER BUSHING 1 112"X1" $7.81 182 67037900 3 EA REDUCER BUSHING 1 112"X314" $7.81 183 67037880 56 EA REDUCER BUSHING 1"X314" $1.75 184 67037960 22 EA REDUCER BUSHING 2"X1 1/2" $8.52 185 67037920 28 EA REDUCER BUSHING 2"X1" $9.64 186 67037940 48 EA REDUCER BUSHING 2"X314" $9.64 187 67037870 9 EA REDUCER BUSHING 3/4"X1/2" $1.75 188 67038020 8 EA TEE, BRASS 314" $4.00 189 67038040 17 EA TEE, BRASS 1" $7.12 190 67038100 14 EA TEE, BRASS 2 $22.50 191 67043260 23 EA COUPLING BRASS 1"FEMALE $4.00 192 67043250 35 EA COUPLING BRASS 314" FEMALE $2.64 193 67037280 7 EA COUPLING BRASS,1 1/2" FEMALE $8.50 194 67037300 16 EA COUPLING BRASS,2" FEMALE $14.00 195 67043180 5 EA COUPLING COMPRESSION 1 112"X5' $15.34 196 67043200 5 EA COUPLING COMPRESSION 2"X 5" $20.73 197 67043120 15 EA COUPLING COMPRESSION 3/4" X 5" $8.78 198 67069003 2 EA STOP, ANGLE METER 1" I.P. $19.79 199 67069005 140 EA STOP, ANGLE METER 1" P.J. $23.75 200 67069000 16 EA STOP, ANGLE METER 314" I.P. $14.50 201 67069002 35 EA STOP, ANGLE METER 314" P.J. $17.34 202 67069100 268 EA STOP, CORP. 1"PJ WILOCKNUT $22.09 203 67069250 52 EA STOP, CORP. 2" REG $109.46 Page 6 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 204 67069050 18 EA STOP, CORP. 3/4"PJ $14.59 205 67069550 40 EA STOP, CURB 1" I-I $37.01 206 67069500 302 EA STOP, CURB 1" PJ-IP $41.22 207 67069400 57 EA STOP, CURB 3/4" I-I $24.17 208 67069300 164 EA STOP, CURB. 3/4" PJ-I $27.19 209 67069006 15 EA ANGLE BALL VALVE 2" $96.46 210 89045010 610 PR ADAPTER, METER 3/4" X 1" $8 88 SECTION G: 213 67052800 1 EA SADDLE,TAP,4"X1" BRASS $52.38 214 67052820 1 EA SADDLE,TAP,4"X2" BRASS $66.53 215 67052840 1 EA SADDLE,TAP,6"X314" BRASS $61.69 216 67052860 64 EA SADDLE,TAP,6"X1" BRASS + $61.69 217 67052880 10 EA SADDLE,TAP,6"X2" BRASS $77.54 218 67052920 115 EA SADDLE,TAP,8"X1" BRASS $76.37 219 67052950 17 EA SADDLE,TAP,8"X2" BRASS $87.62 220 67052970 1 EA SADDLE,TAP,10"X1" BRASS $94.62 221 67052999 32 EA SADDLE,TAP,12"X1" BRASS $110.75 222 67052995 15 EA SADDLE,TAP,12"X2" BRASS $127.20 223 67058304 4 EA GASKET 12"T SLEEVE SIDE GASKE $30.00 224 67058640 39 EA GASKET FULLFACE RED RUB 4 $2.13 225 67058660 2 EA GASKET FULL FACE RED RUB. 6 $3.25 226 67058680 5 EA GASKET FULLFACE RED RUB 8 $4.64 227 67058740 1 EA GASKET M.J. 4 $1.63 SECTION H: 228 67058280 10 EA ADAPTER 10"PVC-10"PVC NONSHEAR $24.84 229 67058250 319 EA ADAPTER 4"PVC-4"PVC $3.27 230 67058260 31 EA ADAPTER 6"PVC-6"PVC $6.97 231 67058270 12 EA ADAPTER 8"PVC-8"PVC SHEAR $10.76 231A 67058190 20 EA ADAPTER ECC. 10"C-10"PVC $15.82 232 67058210 5 EA ADAPTER ECC. 12"C-12"PVC $17.45 232A 67058110 100 EA ADAPTER ECC. 4"C-4"PVC $3.37 233 67058130 190 EA ADAPTER ECC. 6"C-6"PVC $7.26 234 67058170 59 EA ADAPTER ECC. 8"C-8"PVC $15.97 233A 67044040 100 EA BEND, PVC, 221/2 X 4" BXS $ 3.78 235 67044060 12 EA BEND, PVC, 221/2 X 6" BXS $7.43 Page 7 of 9 Exhibit A Item CoDWhse Stock Number Est Ann Quantity Unit of Meas iirp Description VENDOR VENDOR VENDOR VENDOR VENDOR Ferguson Waterworks D & W Utility Supply Techline Pipe Eagle Underground Utility Supply Texas Water Products Principal Place of Business: McKinney, TX Waxahachie, TX Dallas, TX Dallas, Tx Ft. Worth, TX 236 67044080 5 EA BEND, PVC, 221/2 X 8" BXS $23.82 234A 67044000 294 EA BEND, PVC, 45 X 4" BXS $ 3.57 237 67044020 3 EA BEND, PVC, 45 X 6" BXS $7.15 238 67044070 11 EA BEND, PVC, 45 X 8" BXS $21.59 235A 67044290 96 EA CLEANOUT W/PLUG 4" $3.69 239 67044295 35 EA CLEANOUT W/PLUG 6" $17.10 240 67025320 166 JT PIPE, PVC WATER, 12"X20' DR-18 $293.20 236A 67025100 5 JT PIPE, PVC, SEWER, 10"X13' $70.70 241 67025050 259 JT PIPE, PVC, SEWER, 4"X14' + $11.62 242 67025060 93 JT PIPE, PVC, SEWER, 6"X14' $25.06 237A 67025080 31 JT PIPE, PVC, SEWER, 8"X14' $45.08 243 67025200 10 JT PIPE, PVC, WATER, 4"X20' DR-18 $40.20 244 67025250 102 JT PIPE, PVC, WATER, 6"X20' DR-18 $79.80 238A 67025300 5 JT PIPE, PVC, WATER, 8"X20' DR-18 $138.40 245 67044720 25 EA SADDLE, WYE FLEXIBLE 4" $25.22 246 67044725 9 EA SADDLE, WYE FLEXIBLE 6" $32.86 239A 67044500 108 EA WYE PVC 45 4X4X4 BXBXB + $6.85 247 67044520 84 EA WYE PVC 45 4X4X4 BXBXS $8.89 248 67044560 56 EA WYE PVC 45 6X6X4 BXBXB $13.90 240A 67044540 24 EA WYE PVC 45 6X6X4 BXBXS $13.90 249 67044565 3 EA WYE PVC 45 6X6X6 BXBXS $16.86 250 67044580 12 EA WYE PVC 45 8X8X4 BXBXB $20.74 241 A 67044575 9 EA WYE PVC 45 8X8X4 BXBXS $ 20.74 251 67044590 2 EA WYE PVC 45 8X8X6 BXBXB $24.73 252 67044570 10 EA WYE, PVC, 45 6"x6"x6" BxBxB $43.12 SECTION I: 253 67037201 1038 EA RESETTER COPPER 314" + $39.61 254 67037200 9 EA RESETTER COPPER 518"X 3/4" $35.39 255 89045615 113 EA RESETTER, COPPER 12" $42.90 256 89045610 21 EA RESETTER, COPPER 15" $44.94 257 67037202 8 EA RESETTER, COPPER, 1 1/2 X 18 " $450.51 258 67037204 11 EA RESETTER,COPPER, 2 X 18" $497.51 259 67037208 12 EA RESETTER,COPPER,1" $77.00 260 67023000 9 RL PIPE, COPPER TUBING 314"x100' $345.00 261 67023100 57 RL PIPE, COPPER TUBING, 1"X100' $435.00 Page 8 of 9 Exhibit A Unit Item CoDWhse Est Ann of Description VENDOR VENDOR VENDOR VENDOR VENDOR Stock Number Quantity Meas iirp Ferguson D & W Utility Techline Eagle Underground Texas Water Waterworks Supply Pipe Utility Supply Products Principal Place of Business: McKinney, Waxahachie, Dallas, TX Dallas, Tx Ft. Worth, TX TX TX 262 67023050 41 RL PIPE, COPPER TUBING, 1"X60' $261.00 SECTION J: 263 67005000 716 EA CEMENT PVC -QUART $5.62 264 67005005 28 EA CLEANER, PVC CEMENT, 1 QT $7.10 Delivery can be made within weeks after receipt of order. Stock - 4 Stock - 4 2 Stock - 3 1 - 4 Bidder is an authorized bidder, by the manufacturer, and is authorized to sell to the City of Denton? Yes No N/A Yes Yes Yes Yes Yes Addendum #1 No Yes Yes Yes Yes Page 9 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 DRAFT MINUTES PUBLIC UTILITIES BOARD June 11, 2007 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on Monday, June 1 1, 2007 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Chair Charldean Newell, Dick Smith, Bill Cheek, Bob Bland, John Baines and Randy Robinson Ex Officio Members George Campbell, City Manager Howard Martin, ACM Utilities Absent: Phil Gallivan, excused OPEN MEETING: CONSENT AGENDA: The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. 1) Consider recommending adoption of an Ordinance accepting competitive bids and awarding a two-year contract for the purchase of water and sewer parts for the City of Denton Warehouse; providing for the expenditure of funds therefore; and providing an effective date (Bid 3730-Two-Year Contract for Water and Sewer Inventory awarded to the lowest responsible bidder for like items, or by section in the annual estimated amount of $800,000). 2) Consider recommending approval of Bid No. 3796 for replacement of the Secondary Digester Cover at the Pecan Creek Water Reclamation Plant to the low bidder Crescent Constructors, Inc. in the amount of $643,000. 3) Consider recommending approval of Bid #3781 for a three year price agreement for electric meters, current transformers and meter sockets in an amount not to exceed $509,100. Board Member Bob Bland moved to approved Items 1-3 with a second from Board Member Randy Robinson. The motion was approved by a 5-0 vote. The meeting was adj ourned by consensus at AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Materials Management ACM: Jon Fortune Questions concerning this acquisition maybe directed to Sharon Mays 349-8487 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding athree-year contract for the purchase of Electric Meters, CTs, and Meter Sockets for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 3781-Three-Year Contract for Electric Meters, CTs and Meter Sockets awarded to the lowest responsible bidder for each item in the annual estimated amount of $250,000). (The Public Utility Board approved this item by a vote of 5-0). BID INFORMATION This bid is for Warehouse items that are used by Electric Metering for all necessary electric revenue meters and associated equipment. The equipment is used to add new customers to the system and to maintain our existing metering system. In order to improve efficiency and reduce purchasing workloads, normal practice is to establish athree-year contract covering all 43 items. The 43 required items are divided into eight categories and the recommendation for award is structured by category. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its June 1 1, 2007 meeting. RECOMMENDATION Award to the lowest responsible bidder for each category/item as listed on Exhibit A. A summary of the recommended items for each vendor is listed below. Item# Vendor Amount 1-3,20-21 Stuart C. Irby Co. Exhibit A 4-15a HD Supply Exhibit A 16-19a,22-34 Wesco Distribution, Inc. Exhibit A 3 5-3 Sh Texas Meter and Device Co. Exhibit A The offer from Texas Electric Cooperative failed to comply with the terms and conditions set forth in the bid specifications, and was not considered. The vendor qualified their bid with payment terms and pricing structure. Agenda Information sheet June 19, 2007 Page 2 PRINCIPAL PLACE OF BUSINESS HD Supply Wesco Distribution, Inc. Texas Meter & Device Company Corinth, TX Fort Worth, TX Waco, TX Stuart C. Irby Co. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a three-year contract with an option to renew for an additional year if agreed upon by both parties. FISCAL INFORMATION These items will be purchased on an as needed basis through the Warehouse and charged back to the appropriate department. Respectfully submitted: c-,~. Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AIS-Bid 3781 Attachment 1 BID # 3781 DATE: May 24, 2007 Three-Year Contract for Electric Meters. CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Texas Electric Wesco Stuart C. Irby Techline, Ltd. Cooperatives Distribution Co. US & S Principle Place of Business: Fort Worth, TX Decatur, TX Haltom City, TX Fort Worth, TX SECTION A: Standard Residential Meter with Itron's RF Technology (ERT Compatible) 1 20 ea Meter, Single Phase, Class 100, 120U, 2 wire, is No Bid $55.50 $61.70 $63.00 2 7000 ea Meter, Single Phase, Class 200, 240U, 3 wire, 2s No Bid $44.45 $48.94 $40.90 3 30 ea Meter, Single Phase, Class 200, 120U, 3 wire, 12s No Bid $123.50 $206.55 $94.50 SECTION B: Expanded Residential Meter with Itron's RF Technology (ERT Compatible) 4 20 ea Meter, Single Phase, Class 320, 240U, 3 wire, 2s No Bid $95.00 $184.80 $84.00 5 10 ea Meter, Single Phase, Class 20, 120-480U, 3 wire, 4s No Bid $163.00 $184.80 $194.25 6 48 ea er, Single Phase, Class 200, 120-480V, 4 wire, 15- M No Bid $163.00 $206.55 $194.25 6s SECTION C: Standard Commercial Meter with Itron's RF Technology (ERT Compatible) to return kWH, kW, and kVA readings as specified in line items below 7 10 ea Meter Single Phase, Class 100, 120U, 2 wire, is, w/ No Bid $162.00 $206.55 $183.75 kW Demand 8 510 ea Meter, Single Phase, Class 200, 120-480V, 3 wire, 2s, No Bid $153.00 $163.00 $183.75 w/ kW Demand 9 8 ea Meter, Single Phase, Class 320, 120-480V, 3 wire, 2s, No Bid $166.00 $184.80 $204.75 w/ kW Demand 10 67 ea Meter Single Phase, Class 20, 120-480U, 3 wire, 4s, w/ No Bid $166.00 $163.00 $194.25 kW Demand 11 146 ea Meter, Three Phase, Class 20, 120-480V, 4 wire, 8-9s, No Bid $180.00 $206.55 $183.75 w/ kW Demand iia Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 $39.00 Page 1 Attachment 1 EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Texas Electric Wesco Stuart C. Irby Techline, Ltd. Cooperatives Distribution Co. US & S Principle Place of Business: Fort Worth, TX Decatur, TX Haltom City, TX Fort Worth, TX 12 50 ea Meter, Three Phase, Class 20, 120-480V, 4 wire, 8-9s, No Bid $318.00 $266.30 $204.75 kWH, kW/kUA Demand 12a Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 $39.00 13 87 ea Meter, Single Phase, Class 200, 120-480V, 3 wire, 12s, No Bid $166.00 $206.55 $194.25 w/ kW Demand 14 204 ea Meter, Three Phase, Class 200, 120-480U, 4 wire, 15- No Bid $180.00 $206.55 $183.75 16s, w/ kW Demand 14a Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 $39.00 15 8 ea Meter, Three Phase, Class 320, 120-480U, 4 wire, 15- No Bid $188.00 $216.65 $204.75 16s, w/ kW Demand 15a Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 $39.00 SECTION D: Expanded Commercial Meter: Load Profile minimum of 4 Channels (15 minute intervals), Modem (2400 baud min) and Multiple Password based security 16 4 ea Meter, Three Phase, Class 20, 120-480V, 4 wire, 8-9s, No Bid $460.00 $222.25 $333.90 kW Demand 16a Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 No Bid Meter, Three Phase, Class 20, 120-480V, 4 wire, 8-9s, 17 4 ea kW/kUA Demand, w/ KYZ (min 2 sets of pulses No Bid $620.00 $283.50 $393.75 kW/kUA) 18 4 ea Meter, Three Phase, Class 200, 120-480U, 4 wire, 15- No Bid $460.00 $162.00 $330.75 16s, w/ kW Demand 18a Option: KYZ Pulse Initiator Board No Bid $40.00 $45.00 $39.00 SECTION E: Smart Meter: Reactive (kW and kVA) w/ Load Profile minimum of 8 Channels (15 minute intervals). Modem (2400 baud min). Power Quality Measurements should include Voltage Sags & Swells, Vector readings and Waveforms. Events from Diagnostics should include, Vectors, Software/Hardware errors/failures, Dates and times for outages, test/resets and programming changes. Multiple Password based security Meter, Three Phase, Class 20, 120-480V, 4 wire, 8-9s, 19 4 ea kW/kUA Demand, w/ KYZ (min 2 sets of pulses No Bid $910.00 $500.00 No Bid kW/kUA) 19a Option : RS232/RS485 No Bid $180.00 $106.00 No Bid 19b Option: Ethernet No Bid No Bid No Bid No Bid Page 2 Attachment 1 EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Texas Electric Wesco Stuart C. Irby Techline, Ltd. Cooperatives Distribution Co. US & S Principle Place of Business: Fort Worth, TX Decatur, TX Haltom City, TX Fort Worth, TX SECTION F: Meter Sockets Socket, Ring-less, 6 Terminal, 20 amp, One piece $166.60 20 5 ea cover, Closure Plate, Seven Pole Test switch, Pre-wired ' $177.00 No Bid $182.50 DME $155.00 with DME s color-coded wiring diagram fora 4S meter. Socket, Ring-less, 13 Terminal, 20 amp, One piece 21 30 ea cover, Closure Plate, Ten Pole Test switch, Pre-wired ' $221.00 No Bid $182.25 $170.46 with DME s color-coded wiring diagram fora 8-9S $200.75 DME meter. SECTION G: Current Transformers Current Transformers: 600 volt, over-bushing type 22 12 ea 200:5, ANSI meter accuracy class .3B-0.1, rating factor $79.00 $59.00 $63.48 $68.20 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G01 or equal. Current Transformers: 600 volt, over-bushing type 23 12 ea 300:5, ANSI meter accuracy class .3B-0.2, rating factor $92.00 $68.00 $63.48 $68.20 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G02 or equal. Current Transformers: 600 volt, over-bushing type 24 6 ea 400:5, ANSI meter accuracy class .3B-0.2, rating factor $87.00 $59.00 $63.48 $68.85 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G03 or equal. Current Transformers: 600 volt, over-bushing type 25 3 ea 600:5, ANSI meter accuracy class .3B-0.5, rating factor $90.00 $59.00 $63.48 $68.85 of 3.0 @ 30 C. ABB Type CMU, Part #7524A75G04 or equal. Current Transformers: 600 volt, over-bushing type 26 3 ea 800:5, ANSI meter accuracy class .3B-0.5, rating factor $83.00 $59.00 $63.48 $68.85 of 3.0 @ 30 C. ABB Type CMU, Part #7524A75G05 or equal. Current Transformers: 600 volt, over-bushing type 27 3 ea 1000:5, ANSI meter accuracy class .3B-0.5, rating $93.00 $60.00 $63.48 $68.85 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G06 or equal. Current Transformers: 600 volt, over-bushing type 28 3 ea 1200:5, ANSI meter accuracy class .3B-0.9, rating $92.00 $60.00 $63.48 $68.85 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G07 or equal. Current Transformers: 600 volt, over-bushing type 29 3 ea 1500:5, ANSI meter accuracy class .3B-0.9, rating 107.00 $ $63.00 $65.10 $68.85 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G08 or equal. Page 3 Attachment 1 EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Texas Electric Wesco Stuart C. Irby Techline, Ltd. Cooperatives Distribution Co. US & S Principle Place of Business: Fort Worth, TX Decatur, TX Haltom City, TX Fort Worth, TX Current Transformers: 600 volt, over-bushing type 30 3 ea 2000:5, ANSI meter accuracy class .3B-1.8, rating $113.00 $65.00 $69.83 $74.41 factor of 1.5 @ 30 C. ABB Type CMU, Part #7524A75G09 or equal. Current Transformers: 200:5 ratio, 600 volt, window 31 6 ea type. 2.5" window, ANSI meter accuracy class .3B-0.5, $85.00 $58.00 $47.65 $42.09 rating factor of 4.0 @ 30 C. ABB Type CMF, Part # 4460A30G01 or equal. Current Transformers: 300:5 ratio, 600 volt, window 32 6 ea type. 3.0" window, ANSI meter accuracy class .3B-0.5, $53.00 $58.00 $39.70 $52.55 rating factor of 3.0 @ 30 C. ABB Type CMS, Part # 7524A79G02 or equal. Current Transformers: 400:5 ratio, 600 volt, window 33 6 ea type. 3.0" window ANSI Meter accuracy class .3B-0.5 ~ $74.00 $55.00 $47.65 No Bid rating factor of 4.0 @ 30 C. ABB Type CMF, Part # 4460A30G03 or equal. Voltage Transformers: ANSI accuracy class 0.3 thru Burden Z, Thermal Rating 1500 VA at 30 degrees C 34 6 ea ambient, 8400:120 voltage rating, single bushing, 110 $957.00 $58.00 $815.85 $843.60 KV BIL, ABB Type VOZ-11M, Part # 7525A91G07 or equal. Current Transformers: ANSI accuracy class .3 thru B- 35 6 ea 0.5, 110 KU, BIL, 13,800 nominal or 15 KU acceptable. Ratio required. Specify rating factor: ANSI C57.13- 4.0 N/A N/A 1993 35a 3 ea 15:5 ABB Type KON-11, Part # 7524A25G02 or $730.00 $485.00 $626.75 $656.00 equal 35b 3 ea 20:5 ABB Type KON-11, Part # 7524A25G03 or $730.00 $503.00 $626.75 $656.00 equal 35c 3 ea 25:5 ABB Type KON-11 Part # 7524A25G04 or ~ $730.00 $503.00 $626.75 $656.00 equal 35d 3 ea 30:5 ABB Type KON-11, Part # 7524A25G05 or $730.00 $503.00 $626.75 $656.00 equal 35e 3 ea 40:5 ABB Type KON-11 Part # 7524A25G06 or ~ $730.00 $503.00 $626.75 $656.00 equal 35f 3 ea 50:5 ABB Type KON-11, Part # 7524A25G07 or $708.00 $503.00 $626.75 $629.00 equal 35g 3 ea 100:5 ABB Type KON-11, Part # 7524A25G09 or $708.00 $530.00 $657.10 $629.00 equal Page 4 Attachment 1 EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Texas Electric Wesco Stuart C. Irby Techline, Ltd. Cooperatives Distribution Co. US & S Principle Place of Business: Fort Worth, TX Decatur, TX Haltom City, TX Fort Worth, TX 200:5 ABB Type KON-11, Part # 7524A25G11 or 35h 3 ea equal $708.00 $530.00 $657.10 $629.00 Various Shipment can be made in days from receipt of order. 120 up to 28 14 - 70 (See bid for notes & exceptions) Bidder is an authorized distributor, by the manufacturer, and is authorized to sell to the City of Denton? Yes or No or N/A Yes Yes Yes Yes Prices shall be bid F.O.B. Denton Page 5 ORDINANCE N0. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING ATHREE-YEAR CONTRACT FOR THE PURCHASE OF ELECTRIC METERS, CTS, AND METER SOCKETS FOR DENTON MUNICIPAL ELECTRIC; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3781-THREE-YEAR CONTRACT FOR ELECTRIC METERS, CTS AND METER SOCKETS AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH ITEM IN THE ANNUAL ESTIMATED AMOUNT OF $250,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO VENDOR AMOUNT 3781 1-3,20-21 Stuart C. Irby Co. Exhibit A 3781 4-15a HD Supply Exhibit A 3781 16-19a,22-34 Wesco Distribution, Inc. Exhibit A 3781 35-35h Texas Meter and Device Co. Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to pur- chase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION 3. Should the City and the winning bidder(s) wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER VVALTERS, CITY SECRETARY BY: 3-ORD-BID 3781 BID # 3781 DATE: May 24, 2007 Exhibit A Three-Year Contract for Electric Meters. CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Wesco Stuart C. Irby HD Supply Texas Meter & Distribution Co. Device Co. Principle Place of Business: Halt TX City, Fort Worth, TX Corinth, TX Waco, TX SECTION A: Standard Residential Meter with Itron's RF Technology (ERT Compatible) 1 20 ea Meter, Single Phase, Class 100, 120V, 2 wire, is $63.00 2 7000 ea Meter, Single Phase, Class 200, 240V, 3 wire, 2s $40.90 3 30 ea Meter, Single Phase, Class 200, 120V, 3 wire, 12s $94.50 SECTION B: Expanded Residential Meter with Itron's RF Technology (ERT Compatible) 4 20 ea Meter, Single Phase, Class 320, 240V, 3 wire, 2s $95.78 5 10 ea Meter, Single Phase, Class 20, 120-480V, 3 wire, 4s $168.00 6 48 ea er, Single Phase, Class 200, 120-480V, 4 wire, 15- $168.00 16s SECTION C: Standard Commercial Meter with Itron's RF Technology (ERT Compatible) to return kWH, kW, and kVA readings as specified in line items below 7 10 ea Meter Single Phase, Class 100, 120V, 2 wire, is, w/ $168.00 kW Demand 8 510 ea Meter, Single Phase, Class 200, 120-480V, 3 wire, 2s, $154.00 w/ kW Demand 9 8 ea Meter, Single Phase, Class 320, 120-480V, 3 wire, 2s, $168 00 w/ kW Demand . 10 67 ea Meter Single Phase, Class 20, 120-480V, 3 wire, 4s, w/ $168.00 kW Demand 11 146 ea Meter, Three Phase, Class 20, 120-480U, 4 wire, 8-9s, $168.00 w/ kW Demand iia Option: KYZ Pulse Initiator Board $42.50 Page 1 BID # 3781 DATE: May 24, 2007 Exhibit A Three-Year Contract for Electric Meters. CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Wesco Stuart C. Irby HD Supply Texas Meter & Distribution Co. Device Co. Principle Place of Business: Halt TX City, Fort Worth, TX Corinth, TX Waco, TX 12 50 ea Meter, Three Phase, Class 20, 120-480U, 4 wire, 8-9s, $321.00 kWH, kW/kVA Demand 12a Option: KYZ Pulse Initiator Board $42.50 13 37 ea Meter, Single Phase, Class 200, 120-480V, 3 wire, 12s, $168.00 w/ kW Demand 14 204 ea Meter, Three Phase, Class 200, 120-480U, 4 wire, 15- $180.25 16s, w/ kW Demand 14a Option: KYZ Pulse Initiator Board $42.50 15 8 ea Meter, Three Phase, Class 320, 120-480U, 4 wire, 15- $193.00 16s, w/ kW Demand 15a Option: KYZ Pulse Initiator Board $42.50 SECTION D: Expanded Commercial Meter: Load Profile minimum of 4 Channels (15 minute intervals), Modem (2400 baud min) and Multiple Password based security 16 4 ea Meter, Three Phase, Class 20, 120-480U, 4 wire, 8-9s, $222 25 kW Demand 16a Option: KYZ Pulse Initiator Board $45.00 Meter, Three Phase, Class 20, 120-480U, 4 wire, 8-9s, 17 4 ea kW/kVA Demand, w/ KYZ (min 2 sets of pulses $283.50 kW/kVA) 18 4 ea Meter, Three Phase, Class 200, 120-480U, 4 wire, 15- $162.00 16s, w/ kW Demand 18a Option: KYZ Pulse Initiator Board $45.00 SECTION E: Smart Meter: Reactive (kW and kVA) w/ Load Profile minimum of 8 Channels (15 minute intervals). Modem (2400 baud min). Power Quality Measurements should include Voltage Sags & Swells, Vector readings and Waveforms. Events from Diagnostics should include, Vectors, Software/Hardware errors/failures, Dates and times for outages, test/resets and programming changes. Multiple Password based security Meter, Three Phase, Class 20, 120-480U, 4 wire, 8-9s, 19 4 ea kW/kVA Demand, w/ KYZ (min 2 sets of pulses $500.00 kW/kVA) 19a Option: RS232/RS485 $106.00 Page 2 BID # 3781 DATE: May 24, 2007 Exhibit A Three-Year Contract for Electric Meters. CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Wesco Stuart C. Irby HD Supply Texas Meter & Distribution Co. Device Co. Principle Place of Business: Halt TX City, Fort Worth, TX Corinth, TX Waco, TX SECTION F: Meter Sockets Socket, Ring-less, 6 Terminal, 20 amp, One piece 20 5 ea cover, Closure Plate, Seven Pole Test switch, Pre-wired $155.00 with DME's color-coded wiring diagram fora 4S meter. Socket, Ring-less, 13 Terminal, 20 amp, One piece 21 30 ea cover, Closure Plate, Ten Pole Test switch, Pre-wired ' $170.46 with DME s color-coded wiring diagram fora 8-9S meter. SECTION G: Current Transformers Current Transformers: 600 volt, over-bushing type 22 12 ea 200:5, ANSI meter accuracy class .3B-0.1, rating factor $63.48 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G01 or equal. Current Transformers: 600 volt, over-bushing type 23 12 ea 300:5, ANSI meter accuracy class .3B-0.2, rating factor $63.48 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G02 or equal. Current Transformers: 600 volt, over-bushing type 24 6 ea 400:5, ANSI meter accuracy class .3B-0.2, rating factor $63.48 of 4.0 @ 30 C. ABB Type CMU, Part #7524A75G03 or equal. Current Transformers: 600 volt, over-bushing type 25 3 ea 600:5, ANSI meter accuracy class .3B-0.5, rating factor $63.48 of 3.0 @ 30 C. ABB Type CMU, Part #7524A75G04 or equal. Current Transformers: 600 volt, over-bushing type 26 3 ea 800:5, ANSI meter accuracy class .3B-0.5, rating factor $63.48 of 3.0 @ 30 C. ABB Type CMU, Part #7524A75G05 or equal. Current Transformers: 600 volt, over-bushing type 27 3 ea 1000:5, ANSI meter accuracy class .3B-0.5, rating $63.48 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G06 or equal. Current Transformers: 600 volt, over-bushing type 28 3 ea 1200:5, ANSI meter accuracy class .3B-0.9, rating $63.48 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G07 or equal. Page 3 BID # 3781 DATE: May 24, 2007 Exhibit A Three-Year Contract for Electric Meters. CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Wesco Stuart C. Irby HD Supply Texas Meter & Distribution Co. Device Co. Principle Place of Business: Halt TX City, Fort Worth, TX Corinth, TX Waco, TX Current Transformers: 600 volt, over-bushing type 29 3 ea 1500:5, ANSI meter accuracy class .3B-0.9, rating $65.10 factor of 2.0 @ 30 C. ABB Type CMU, Part #7524A75G08 or equal. Current Transformers: 600 volt, over-bushing type 30 3 ea 2000:5, ANSI meter accuracy class .3B-1.8, rating $69.83 factor of 1.5 @ 30 C. ABB Type CMU, Part #7524A75G09 or equal. Current Transformers: 200:5 ratio, 600 volt, window 31 6 ea type. 2.5" window ANSI meter accuracy class .3B-0.5, $47.65 rating factor of 4.0 @ 30 C. ABB Type CMF, Part # 4460A30G01 or equal. Current Transformers: 300:5 ratio, 600 volt, window 32 6 ea type. 3.0" window, ANSI meter accuracy class .3B-0.5, $39.70 rating factor of 3.0 @ 30 C. ABB Type CMS, Part # 7524A79G02 or equal. Current Transformers: 400:5 ratio, 600 volt, window 33 6 ea type. 3.0" window ANSI Meter accuracy class .3B-0.5 ~ $47.65 rating factor of 4.0 @ 30 C. ABB Type CMF, Part # 4460A30G03 or equal. Voltage Transformers: ANSI accuracy class 0.3 thru Burden Z, Thermal Rating 1500 VA at 30 degrees C 34 6 ea ambient, 8400:120 voltage rating, single bushing, 110 $815.85 KV BIL, ABB Type VOZ-11M, Part # 7525A91G07 or equal. Current Transformers: ANSI accuracy class .3 thru B- 35 6 ea 0.5, 110 KV, BIL, 13,800 nominal or 15 KU acceptable. Ratio required. Specify rating factor: N/A N/A 3 3.0 35a 3 ea 15:5 ABB Type KON-11, Part # 7524A25G02 or $512.50 equal 35b 3 ea 20:5 ABB Type KON-11, Part # 7524A25G03 or $512.50 equal 35c 3 ea 25:5 ABB Type KON-11, Part # 7524A25G04 or $512.50 equal 35d 3 ea 30:5 ABB Type KON-11, Part # 7524A25G05 or $512.50 equal Page 4 BID # 3781 Exhibit A DATE: May 24, 2007 Three-Year Contract for Electric Meters, CT's and Meter Sockets EST. ITEM ANNUAL UOM DESCRIPTION VENDOR VENDOR VENDOR VENDOR QTY. Wesco Stuart C. Irby HD Supply Texas Meter & Distribution Co. Device Co. Principle Place of Business: Halt TX City, Fort Worth, TX Corinth, TX Waco, TX 35e 3 ea 40:5 ABB Type KON-11, Part # 7524A25G06 or $521.25 equal 35f 3 ea 50:5 ABB Type KON-11, Part # 7524A25G07 or $521.25 equal 35g 3 ea 100:5 ABB Type KON-11 Part # 7524A25G09 or ~ $528.75 equal 35h 3 ea 200:5 ABB Type KON-11, Part # 7524A25G11 or $528.75 equal Shipment can be made in days from receipt of order. 14 - 70 Various (See bid for notes & 28 - 35 Various exceptions) (See bid) Bidder is an authorized distributor, by the manufacturer, and is authorized to sell to the City of Denton? Yes or No or N/A yes Yes Yes Yes Prices shall be bid F.O.B. Denton Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 DRAFT MINUTES PUBLIC UTILITIES BOARD June 11, 2007 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on Monday, June 1 1, 2007 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Chair Charldean Newell, Dick Smith, Bill Cheek, Bob Bland, John Baines and Randy Robinson Ex Officio Members George Campbell, City Manager Howard Martin, ACM Utilities Absent: Phil Gallivan, excused OPEN MEETING: CONSENT AGENDA: The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. 1) Consider recommending adoption of an Ordinance accepting competitive bids and awarding a two-year contract for the purchase of water and sewer parts for the City of Denton Warehouse; providing for the expenditure of funds therefore; and providing an effective date (Bid 3730-Two-Year Contract for Water and Sewer Inventory awarded to the lowest responsible bidder for like items, or by section in the annual estimated amount of $800,000). 2) Consider recommending approval of Bid No. 3796 for replacement of the Secondary Digester Cover at the Pecan Creek Water Reclamation Plant to the low bidder Crescent Constructors, Inc. in the amount of $643,000. 3) Consider recommending approval of Bid #3781 for a three year price agreement for electric meters, current transformers and meter sockets in an amount not to exceed $509,100. Board Member Bob Bland moved to approved Items 1-3 with a second from Board Member Randy Robinson. The motion was approved by a 5-0 vote. The meeting was adj ourned by consensus at AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 Questions concerning this acquisition maybe directed DEPARTMENT: Materials Management to Mike Ellis at 349-8434 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance providing for the expenditure of funds for the refurbishing and mounting of an ambulance module on a new 2008 chassis for the City of Denton Fire Department in accordance with provisions of State Law exempting such purchases from requirements for competitive bidding; and providing an effective date (File 3 807-Emergency Purchase of Refurbishment and Mounting of Ambulance Module on Chassis for the City of Denton Fire Department awarded to Freeway Ford in the amount of $49,400). FILE INFORMATION This acquisition is for the refurbishing of a Frazer Type I 12' GPM ambulance body and replacement of a Ford F-350 chassis damaged by flood water on April 24, 2007. The ambulance was partially submerged in rapidly rising floodwater damaging the chassis beyond repair and requiring major refurbishing of the ambulance module body. The bodywork is being done by the original manufacturer, Frazer Ambulance Company. The chassis, a 2008 Ford F-350 6.4 diesel XLT, is supplied by Freeway Ford. To comply with Texas Motor Vehicle regulations, the purchase order will be issued to Freeway Ford. Due to the limited number of ambulance units available in the Denton Fire Department fleet, this acquisition was determined to be an emergency and exempt from the competitive bidding process. RECOMMENDATION Declare the acquisition an emergency and approve the purchase order to Freeway Ford in the amount of $49,400. PRINCIPAL PLACE OF BUSINESS Freeway Ford Houston, TX ESTIMATED SCHEDULE OF PROJECT The refurbishment and remounting of the ambulance module is estimated to be complete within 30 days. Agenda Information Sheet June 19, 2007 Page 2 FISCAL INFORMATION This item will be funded from account 860002.6553. Respectfully submitted: c-,~. Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Memo form Ross Chadwick, Fire Chief Attachment 2: Quote from Frazer Ambulance Co. 1-AIS-File 3807 Attachment 1 To: Purchasing Agent From: Ross Chadwick, Fire Chief Date: June 5, 2007 Subject: Ambulance Purchase During a recent weather event, a Fire Department ambulance was severely damaged. The ambulance was an assigned front line unit and a reserve ambulance is now operating in its place. The replacement of this apparatus is deemed an emergency as this leaves only one unit available in reserve status and one unit operating at a level beyond its capacity. Your assistance in expediting this purchase is appreciated. Thank you, .,, - - r ` Ross Chadwick Fire Chief Denton Fire Department 332 E. Hickory St. Denton, ~'exas 76201 940.349.8840 www. cityofdenton. com - Attachment 2 a. _, d prd 2, 2007 Nor. N~onty Perry l]entoa~ Fire Department Em.~: monty.perry cityofdenton. co Mr. Perry, Quote # 5U57 Per your request we are quoting ren~aunt~ng and refurbishing of your Fm~er Type ~ ~ ~' ~rP~ onto a 2005 F-35o G.4L diesei ~T chassis. Foy your convenience all pricing has been itemized below. 2005 Fard F-~~~ G.4~ diesel I,T chassis ~ ~,~~~.00 Remount X0,000.00 ~ddi~Q~a1 items listed below} S 40.00 Tam 49,4.00 Remount of moduli„cludes: a} New wheten 400 series grille and intersect LEDs and new speakers b~ New console aid new siren c} Replace all generator cabling d} New boot plate and boat e} New mounting ribber f} Rewire ~ lights g} New under hood brewers h} Flect~cal check-out i}New weatherstrip on doors, new rivets on panels new safety walk caution abrasive tape on all entry thresholds ~ddxtional items: ~eldern~.an air suspension system Furnish and install ~ new 5.5 kw gen set ,OOC~.00 ,4~}0.0~ The price quoted w~ vat due to the extent of water damage that may be found. ~]ue to limited owledge, an inspection shall be performed and ~ revision of additiana~ charges will be submitted for your approval. Note: 1~. The air suspension on the old chassis will not ~t on ~e new 20(18 Ford F~30 chassis. ~. Yawing of rnadulc can be quoted separateXy if you desire. old chassis is to be towed back to D~ntan Fire Department. . There are no Ranchhand Ville guards available for the 2005 Ford F-~~ cUrren~.y therefore all LF~]~ ~a~i have to he mounted on factory grille and fenders. This does not iniude HGA' fee of 600.0, although yon ~,ay not need to o through e~ under this emergency P.~.. Per 'f ~1 we ire qo~n t~~ t~xouh cur iieenec~ franch~~e ~ea~er, Freeway ~~rd. Thank you for the aprtunity to quote this doh. ~ you have any questions pease call me at 858 ~7~-97I. hest beards, ~doiph Garcia Fraser, Ltd. ORDINANCE N0. AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR THE REFURBISHING AND MOUNTING OF AN AMBULANCE MODULE ON A NEW 2008 CHASSIS FOR THE CITY OF DENTON FIRE DEPARTMENT IN ACCORDANCE WITH PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS FOR COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 3807-EMERGENCY PURCHASE OF REFURBISHMENT AND MOUNTING OF AMBULANCE MODULE ON CHASSIS FOR THE CITY OF DENTON FIRE DEPARTMENT AWARDED TO FREEWAY FORD 1N THE AMOUNT OF $49,400). WHEREAS, state law and ordinance require that certain contracts requiring an expenditure or payment by the City in an amount exceeding $25,000 be by competitive bids, except in the case of public calamity where it becomes necessary to act at once to appropriate money to relieve the necessity of the citizens of the city, or in case of unforeseen damage to public property, machinery or equipment or where the procurement is necessary to preserve or protect the public health or safety of the city's residents under Section 252 of the Local Government Code; and, WHEREAS, the City Manager has recommended to the City Council that it is necessary to purchase goods or services due to the following emergency conditions outlined in the memorandum attached hereto, incorporated herein by reference; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby determines that there is a public calamity that makes it necessary to act at once to appropriate money to relieve the necessity of the citizens of the city, or to provide for unforeseen damage to public property, machinery or equipment, or to preserve or protect the public health or safety of the city's residents and by reason thereof, the following emergency purchases of materials, equipment, supplies or services, as described in the "Purchase Orders" referenced herein and on file the office of the Purchasing Agent, are hereby approved: PURCHASE ORDER NUMBER VENDOR AMOUNT 133233 Freeway Ford/Frazer, Ltd. $ 49,400 SECTION 2. Because of such emergency, the City Manager or designated employee is hereby authorized to purchase the materials, equipment, supplies or services as described in the attached Purchase Orders and to make payment therefore in the amounts therein stated, such emergency purchases being in accordance with the provisions of state law exempting such purchases by the City from the requirements of competitive bids. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: 3-ORD-File 3807 AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Materials Management ACM: Jon Fortune Questions concerning this acquisition maybe directed to Jim Coulter at 349-7194 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the installation of a digester cover at the City of Denton Pecan Creek Water Reclamation Plant; providing for the expenditure of funds therefor; and providing an effective date (Bid 3796-Pecan Creek Water Reclamation Plant Digester Improvements awarded to Crescent Constructors, Inc. in the amount of $643,000). The Public Utilities Board recommends approval (5-0). BID INFORMATION The Pecan Creek Water Reclamation Plant (PCWRP) uses a primary and a secondary digester in sequence to stabilize the combined sludge from the primary and secondary treatment processes. The stabilized sludge is then pressed and used as an ingredient in the compost operation. During the recent expansion of the PCWRP to 21 million gallons per day capacity, all of the process units related to heating and mixing of the sludge in the digesters were replaced. At that time, the condition of the digester covers was also evaluated. This condition evaluation determined that the secondary digester cover will need replacement in the near future. The plant has extracted another four years of service from this digester cover, and it is now time to replace the cover. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its June 1 1, 2007 meeting. RECOMMENDATION Award to Crescent Constructors, Inc. in the amount of $643,000. PRINCIPAL PLACE OF BUSINESS Crescent Constructors, Inc. Richardson, TX ESTIMATED SCHEDULE OF PROJECT Completion of this project is estimated to be 300 days from the date that the Notice to Proceed is issue . Agenda Information Sheet June 19, 2007 Page 2 FISCAL INFORMATION Funding for this item is budgeted in account 640013539.1365.40100. Respectfully submitted: c-,~. Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Bid Tabulation 1-AIS-Bid 3796 Bid #3796 Attachment 1 Date: 5/29107 Pecan Creek Water Reclamation Plant Digester Improvements NO. DESCRIPTION Vendor Vendor Crescent Red River Constructors, Construction Inc. Principle Place of Business: Richardson, TX Wylie, TX 4.A Installation of Digester Cover Base $583 000.00 $555 000.00 Bid , , Demolition and Disposal of 4.B Exisitng Cover, Sludge Removal $60,000.00 $95,000.00 and Digester Cleaning Total A and B $643,000.00 $650,000.00 Bid Bond yes yes ORDINANCE N0. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE INSTALLATION OF A DIGESTER COVER AT THE CITY OF DENTON PECAN CREEK WATER RECLAMATION PLANT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3796-PECAN CREEK WATER RECLAMATION PLANT DIGESTER IMPROVEMENTS AWARDED TO CRESCENT CONSTRUCTORS, INC. IN THE AMOUNT OF $643,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3796 Crescent Constructors, Inc. $643,000 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER VVALTERS, CITY SECRETARY BY: 3-ORD-Bid 3796 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 DRAFT MINUTES PUBLIC UTILITIES BOARD June 11, 2007 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on Monday, June 1 1, 2007 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Chair Charldean Newell, Dick Smith, Bill Cheek, Bob Bland, John Baines and Randy Robinson Ex Officio Members George Campbell, City Manager Howard Martin, ACM Utilities Absent: Phil Gallivan, excused OPEN MEETING: CONSENT AGENDA: The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. 1) Consider recommending adoption of an Ordinance accepting competitive bids and awarding a two-year contract for the purchase of water and sewer parts for the City of Denton Warehouse; providing for the expenditure of funds therefore; and providing an effective date (Bid 3730-Two-Year Contract for Water and Sewer Inventory awarded to the lowest responsible bidder for like items, or by section in the annual estimated amount of $800,000). 2) Consider recommending approval of Bid No. 3796 for replacement of the Secondary Digester Cover at the Pecan Creek Water Reclamation Plant to the low bidder Crescent Constructors, Inc. in the amount of $643,000. 3) Consider recommending approval of Bid #3781 for a three year price agreement for electric meters, current transformers and meter sockets in an amount not to exceed $509,100. Board Member Bob Bland moved to approved Items 1-3 with a second from Board Member Randy Robinson. The motion was approved by a 5-0 vote. The meeting was adj ourned by consensus at AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Materials Management ACM: Jon Fortune Questions concerning this acquisition maybe directed to Bob Tickner 349-8275 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for improvements to Cedar Street including sidewalk replacement, accessibility ramps, landscaping, storm drainage, water line and sanitary sewer improvements; providing for the expenditure of funds therefor; and providing an effective date (Bid 3770-Cedar Street Improvements awarded to The Fain Group, Inc. in the amount of $1,170,263). The Public Utilities Board recommends approval of utility related items (5-0). BID INFORMATION The Cedar Street Improvements project consists of the reconstruction of sidewalks and streetscape on Cedar Street from McKinney Street south to Mulberry. As part of this renovation project, portions of the street will be rebuilt and/or resurfaced; consequently, the need for the replacement and rehabilitation of storm drainage, water and sewer utilities was reviewed. All three utilities were in need of replacement because of age and condition, water break histories or operational/maintenance concerns. Award of this contract allows complete replacements in advance of or in conjunction with the street work. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved the utility related sections of this bid at its May 30, 2007 meeting. RECOMMENDATION Award to The Fain Group, Inc. in the amount of $1,170,263. PRINCIPAL PLACE OF BUSINESS The Fain Group, Inc. Fort Worth, TX STAFF COST ESTIMATE Staff estimated the cost of this proj ect at $1,172,129.50. Agenda Information Sheet June 19, 2007 Page 2 ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed within 150 work days or approximately December 1, 2007. FISCAL INFORMATION Funding for this project will come from the following Account numbers: Account# 962004001.13 60.40100 Account# 962004002.13 60.40100 Account# 962005002.1360.40100 Account# 3 09999445.13 60.40100 Drainage Account# 650041560.1360.40100 Drainage Account# 650041559.1360.40100 Water Account# 630062517.1360.40100 Wastewater Account# 640082535.1360.40100 Wastewater Account# 640082536.1360.40100 $374,315.00 $194,185.00 $198,400.00 $ 68,915.00 $ 79,839.29 $ 13,710.71 $142,039.50 $ 9,444.00 $ 89,414.50 $1,170,263.00 Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Bid Tabulation 1-AIS-Bid 3770 Bid #3770 Attachment 1 Date: May 8, 2007 Cedar Street Improvements N0. Description Vendor Vendor Jagoe-Public The Fain Group Inc. Company Principle Place of Business: Denton, TX Fort Worth, TX 1 Total Base Bid Section A No Bid $835,815.00 2 Total Base Bid Section B $544,350.50 $334,448.00 Total Base Bid Section C 3 $1,170,263.00 (Total of A & B) Bid Bond yes yes ADDENDUM # 1 yes yes ORDINANCE N0. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR IMPROVEMENTS TO CEDAR STREET INCLUDING SIDEWALK REPLACEMENT, ACCESSIBILITY RAMPS, LANDSCAPING, STORM DRAINAGE, WATER LINE AND SANITARY SEWER IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3770-CEDAR STREET IMPROVEMENTS AWARDED TO THE FAIN GROUP, INC. IN THE AMOUNT OF $1,170,263). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3770 The Fain Group, Inc. $1,170,263 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER VVALTERS, CITY SECRETARY BY: 3-ORD-Bid 3770 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 AGENDA PUBLIC UTILITIES BOARD May 3 0, 2007 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on Wednesday, May 30, 2007 at 9:05 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Chair Charldean Newell, Dick Smith, Bill Cheek, Phil Gallivan, Randy Robinson and John Baines (arrived at 9:24 a.m.) Ex Officio Members: George Campbell, City Manager, excused Howard Martin, ACM Utilities Absent: Bob Bland, excused OPEN MEETING: CONSENT AGENDA: Approval of the Consent Agenda authorizes the Assistant City Manager of Utilities, or his designee, to implement each item in accordance with the staff recommendations. The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders or other matters to be brought before the Public Utilities Board to be considered and approved for payment or other action under Consent Agenda Items 1 through 2. Detailed information is attached to each Consent Agenda item. This listing is provided on the Consent Agenda to allow Public Utilities Board Members to discuss or withdraw an item prior to approval of the Consent Agenda. If the item is pulled from consideration for separate discussion, prior to its consideration, such item will be considered as the first item(s) taken up under the "Items For Individual Consideration" section of the agenda, set forth below. The remaining Consent Agenda Items will be approved with one motion, a second, and by a majority vote of the Public Utilities Board Members who are present. 1) Consider recommending adoption of an Ordinance awarding a contract under the Texas Multiple Award Schedule (TXMAS) program for the purchase of two 55' aerial device bucket trucks and one hydraulic rotating digger derrick truck as awarded by the State of Texas Building and Procurement Commission contract TXMAS-7-23V040; providing for the expenditure of funds therefore; and providing an effective date (File 3724-Heavy Services Trucks for Denton Municipal Electric awarded to Grande Truck Center in the amount of $385,354). 2) Consider approval of an ordinance accepting competitive bids and awarding contracts for the purchase of temporary employment services to the Solid Waste Department. Board Member Dick Smith moved to approve Item 1 and 2 with a second from Board Member Phil Gallivan. The motion was approved by a 5-0 vote. 1 Public Utilities Board Agenda 2 May 14, 2007 3 Page2of8 4 5 6 ITEMS FOR INDIVIDUAL CONSIDERATION: 7 8 3) Consider recommending approval of the Public Utilities Board meeting minutes of: 9 a. May 14, 2007 10 11 The minutes were approved as circulated. 12 13 4) Consider recommending approval of award of Bid No. 3770 in an amount not to exceed 14 $334,448.00 to Fain Construction, Fort Worth, Texas for the construction of storm drainage, 15 water line and sanitary sewer improvements associated with the Cedar Street Improvements 16 projects. The proj ect location is shown on Exhibit I. 17 18 P.S. Arora, Assistant Director of Wastewater Utilities, presented this item noting that the Cedar 19 Street Improvements proj ect consisted of the reconstruction of sidewalks and streetscape on 20 Cedar Street from McKinney Street south to Mulberry. As part of this renovation project, 21 portions of the street will be rebuilt and/or resurfaced; consequently, the need for the 22 replacement and rehabilitation of storm drainage, water and sewer utilities was reviewed. All 23 three utilities were in need of replacement because of age and condition, water break histories or 24 operational/maintenance concerns and it was desirable to complete these replacements in 25 advance of or in conjunction with the street work. 26 27 Bids were originally taken for the entire project, including the relocations/rehabilitations of the 28 storm drainage, water and sewer lines. Bids were received on January 1 1, 2007 from a total of 29 two bidders. The total bid amount from C. Green Scaping, LP was $1,157,608.15 and from 30 Northstar Construction was $1,327,315.00. The engineer's opinion of probable cost for the 31 entire project was $1,036,979.50. The combined water and sewer bids were high ($348,743.20) 32 for the overall low bidder (C.Green Scaping, LP), and the bid structure did not allow for a 3 3 separate award of the water and sewer portion of the proj ect to the other bidder (Northstar 34 Construction's water and sewer bid was $193,315.00). 35 3 6 In addition to the unfavorable bids for water and sewer and the limitations in the bid language to 37 allow for the separate award for these bid items to the second low bidder, there were also some 3 8 concerns raised after the bid opening about the condition of existing storm drainage lines within 3 9 Cedar Street that were not a part of the original bid package. As a consequence, staff met to 40 discuss alternatives and elected to expand the scope of work to include the additional storm 41 drainage improvements and rebid the proj ect with more flexibility for the city specified in the bid 42 award. 43 44 The rebid of the project allowed for all of the underground improvements (storm drainage, water 45 and sewer) to be bid as a Part B of the bid package while the grant funded sidewalks, street 46 Scaping and pavement work to be bid as Part A of the bid package. The bid package was 47 structured to allow the separate award to the low bidder of Part A only or Part B only or Part 48 A+B. 49 50 1 Public Utilities Board Draft Minutes 2 May 30, 2007 3 Page 3 of 8 4 5 6 The restricted bid package was issued and bids were received on May 8, 2007. There were two 7 bidders. The Fain Company of Fort Worth, Texas was the low bidder for Part A, Part B and the 8 combined Part A+B bid award alternatives. Although the project was rebid and included 9 additional storm drainage work in excess of approximately $75,000.00, the overall project cost to 10 the city in the rebid was only $12,665.00 ($1,170,263.00 vs. $1,157,608.15). In addition, the 11 bids received for water and sewer were under the engineer's estimate and were $107,845.70 less 12 ($240,897.00 vs. $348,743.20) than the original bid. The grant funded portion of the project 13 (Part A) had an overall increase of 3.2% ($26,970.20) as a result of the rebidding of the project. 14 15 Board Member Bill Cheek moved to approve with a second from Board Member Smith. 16 The motion was approved by a 5-0 vote. 17 18 5) Consider recommending approval of the agreement between the City of Denton and Denton 19 288 L.P., a Texas Limited Partnership for the provision of Sanitary Sewer and Water 20 Facilities pertaining to the Hills of Denton, a development located in the City of Denton. 21 22 P.S. Arora, Assistant Director of Wastewater Utilities, presented this item noting that it had been 23 an on-going project since 2002. Denton 288 L.P., aka Tomlinson Investments, bought 2100 24 acres, which have been annexed, with the zoning contingent upon approval of the agreement. 25 The property boundaries are along Loop 288, Locust Street, Bonnie Brae, and 1000 feet south of 26 Milam Road. 27 28 The Hills of Denton has been working with the Water department staff developing agreements 29 for water/wastewater service. The components of the facilities and the responsibilities ofthe 30 Developer and the City are included in the agreement. To provide wastewater service to the 31 Hills of Denton, the Developer's proj ect will include the survey, design and construction of the 32 entire Phase 1 project. The City will procure the off site permanent and temporary construction 33 easements for Phase 1. As Phase 1 begins to reach its capacity of serving 1700 homes, the City 34 will commence Phase II which includes the remaining interceptor sewer and Clear Creek Water 35 Reclamation Plant construction. 36 37 Water service supply to the development is available from the existing 36" transmission pipeline 38 along the north side of Loop 288. There are four existing stub-outs available for extending water 39 mains to the development at the developer's cost. There is an existing 12" waterline on Milam 40 Road available for additional capacity. All expenditures for water service to the development 41 are the responsibility of the developer. No city funds, except for any oversize of water lines, will 42 be spent without approval by the PUB and the City Council. 43 44 Board Member Dick Smith asked if the total cost of Phase I would be the developer's. 45 46 Arora replied that it would. 47 48 Board Member Randy Robinson asked if Phase II had been authorized as part of a bond package. 49 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Public Utilities Board Agenda May 14, 2007 Page4of8 Arora replied that it was at one time, but when the original investor walked away from the project, bond money and the debt obligation were transferred to the electric department. Board Member Dick Smith moved to approved with a second from Board Member Phil Gallivan. The motion was approved by a 6-0 vote. 6) Consider a contract extension to Trinity Waste Services to continue to provide residential curbside recycling services to Denton's citizens. Vance Kemler, Director of Solid Waste, stated this was a revisit of the city's curbside recycling program. The city had experienced a very successful four plus years with Trinity Waste Services now Allied Services. The contract has the ability to extend the original contract and doing so required some changes since the contract was somewhat dated. The amended contract staff is bringing forward for approval has one and only one extension term for curbside recycling with Allied. At the last meeting, staff expected to have a signed fully extended contract to bring forward today of be prepared to go out for bid. Staff has prepared a bid in the event that the contract was not signed. Both parties have agreed to the terms of the extension. Kemler state he had a voice mail from Allied stating that corporate had signed and executed the contract and the contract would be delivered this morning. Since Allied had fulfilled its agreement to sign the contract, Kemler was making staff's recommendation that the city move forward with an extension with Allied for the next 5 years. Board Member Smith asked if conversations had taken place with Trinity regarding the offsite co ections centers. Kemler replied that Trinity was preparing a proposal which staff has not yet received. Kemler was hopeful that the proposal would be delivered along with the curbside contract. Board Member Smith stated that the discussion last meeting was that it would have been advantageous to have both contracts at the same time. Kemler stated that staff hopes to bring that contract to the Board at the next meeting. If Allied does not provide a proposal, or if that proposal is unacceptable, staff is prepared to go out for bids. As part of that bid, staff would also bid a cart maintenance program to see what the cost would be. Currently cart maintenance for the refuse carts is with the cart manufacturer. Recycling carts are done internally. Staff thought there should be some economy by consolidating those services. Board Member Gallivan asked if the Board had directed staff to negotiate other terms. 1 Public Utilities Board Agenda 2 May 14, 2007 3 Page 5 of 8 4 5 6 Kemler replied staff was asked to acquire a quote for drop-off collections which had not been 7 received at this time. 8 9 Board Member Smith suggested that the motion be worded that the contract with Allied not be 10 signed until a proposal for the drop off sites had been received. Hopefully that would give the 11 city some leverage. 12 13 Howard Martin, ACM Utilities, stated that the only negative to doing that would be the time 14 frame in getting a bid out. If no decision is reached by June 11th, that would be a possibility. 15 Also, June 19th is the last Council meeting for a period of about 30 days, so whatever is the 16 decision is, it needs to go to the Council on June 19th. If for some reason, Council does not 17 approve the contract, then the bid needs to be out on the street. 18 19 Martin's general sense was that staff could get a drop off site proposal from Allied for the June 20 11th PUB consideration. 21 22 Chair Newell stated that when a motion is made, it should include the motion that the offsite 23 collection proposal should also be received and the contract for recycling would be withheld 24 until it is received. 25 26 Board Member Gallivan moved to table this item until the June 11, 2007 PUB meeting with 27 a second from Board Member Cheek. The motion was approved by a 6-0 vote. 28 29 7) Receive a report, hold a discussion and give staff direction regarding the removal of property 30 in the downtown area from the floodplain and discuss issues relating to flooding experienced 31 during the April 24th storm. 32 33 Jim Coulter, Director of Water Utilities, presented this item stating that at the March 6, 2007 34 City Council meeting staff was directed to bring cost estimates for removing the downtown area 35 from the 100 year floodplain. What staff looked at was the downtown area basically west of 36 Bell Avenue over to Carroll Boulevard up to U.S. 380 and down to Eagle Drive. Using estimates 37 from the 1996 Pecan Creek Master Plan cost estimates to removed the downtown area from the 38 100 year floodplain used an inflation factor to come up with a $25 million cost for construction 39 only. That's just the channel and concrete. Then, engineering costs would be about $2.5 40 million. Utility relocations a conservative estimated would be around $10 million when you go 41 through the older area of town and excavate deeper and wider on those channels a lot of 42 wastewater lines, water lines are going to have to be relocated to provide service to the 43 community. The easement right-of way acquisitions moving a lot of business, purchase a lot of 44 property to do that project a $10 million estimate and then added contingency. That is $56 45 million number for a ball park estimate of what it would take to remove the downtown portion of 46 the community from the 100 year flood plain. If you look at that same factor that we used from 47 1996 to present, staff added about a 1.4 inflation factor which makes the cost of the project over 48 a ten year period around $78 to $80 million. Council wanted a point of reference if the 49 community wanted to remove all of the downtown area from the floodplain so that development 50 could occur in those lower floodplain areas of the community. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Public Utilities Board Agenda May 14, 2007 Page6of8 Board Member Smith asked how many acres of land would be removed. Coulter replied about 142 acres. Smith asked if that included the floodway and the floodplain. Coulter replied yes. Smith asked if that would give an additional 140 acres of developable property. Coulter, we would get property out of the property. There are already structures in the floodplain. It's just pulling those areas out of the FEMA designation as a 100 year flood. Coulter pointed out that the drainage budget does not have the money to allocate toward that kind of proj ect. To do that kind of proj ect staff would have to triple the drainage fee to pay for that scale of a project. He's not asking for a recommendation on that, but that's something Council wanted staff to bring forward. If Council decides to go forward and continue an investigation an outside engineering firm will need to be hired to do a feasibility analysis of that project and to come up with a good firm dollar estimate on what that would be. The other issue to be discussed at Council is what happened during the recent flood event. As you are aware, recently had a 100 year storm event in parts of the town, we had flooding with 96 street closures,150 homes flooded. The good news is that with approximately 1400 homes and structures located in the FEMA floodplain, only 150 homes flooded. Staff will discuss with the Council how far does Council want to go in trying to remove properties from the floodplain throughout the community. One of the things that the engineering group does on an annual basis is sending out notification to those 1400 properties that they are located in a floodplain. VVe notify residents and business owners and the National Flood Insurance Program is available for them and if interested they should contact their insurance agent to purchases flood insurance. Since the storm event, staff has been gathering a lot of information, flood insurance estimates for properties out there in the community using a $160,000 home with $60,000 worth of contents insurance would be about $2500 a year. If contents are not insured it would be about $1200 yearly. By comparison, a $150,000 home with $50,000 contents not in the floodplain insurance is around $264 a year. Staff will increase its efforts to make sure property owners are informed a out insurance. Coulter presented options which ran the gamut of costs. The first would be to continue the drainage program at its current level. Progress has been made. The current program is making incremental progress in removing properties and prevents people from being washed off of roadways. That is the key area staff is currently focusing on. 1 Along with continue at current level, staff can redouble its efforts to notify those people out in 2 the floodplain areas that flood insurance is available, not only to those in the floodplain but if 3 you have a poor site condition, flood insurance is available as well. 4 5 The next option is to purchase developed properties that are at risk of flooding and remove 6 residents from buildings in the floodplain. If the City purchased all of the 150 homes that were 7 damaged, as a discussion purpose only, at a cost of $80,000 each, it would about $12 million to 8 purchase those homes. 9 10 Another option would be to go through the community, purchase all of the easement, all of the 11 properties, do all of the utility relocations for all of these floodplain areas and try to remove all of 12 the property from the floodplain; again ballpark estimate is in the $200 million range. 13 14 One thing that staff will take to Council to discuss is to request at 10% increase in the drainage 15 fee and that money would be earmarked to start purchasing those flood prone properties. A 10% 16 increase in the drainage fee would yield about $350,000 a year. What staff would do would be to 17 develop criteria that would identify those properties in different areas of town that have the 18 lowest finished floor elevation in relationship to the base flood in that particular area and make 19 an offer. This would be a voluntary program. Once purchased the structure would be moved out 20 or demolished. 21 22 Chair Newell stated there was another option. If the city gets about $350,000 a year from a 10% 23 increase in drainage fee, provide a $2,000 incentive per the 175 most vulnerable homes to buy 24 flood insurance. It doesn't solve the problem but it would be immediate. 25 26 Board Member Smith remarked he was not really sure how he felt. However, the drainage fee as 27 such is political and such a volatile issue that he is not sure that it should be increased. He thinks 28 the drainage revenue needs to go to providing issues of public safety with regard to the overall 29 citizenry of Denton which means roadway equipment. 30 31 Board Member Randy Robinson stated that he did not think that the City could take on the 32 responsibility that FEMA has taken on which is a program of a standard insurance premium that 33 afforded to properties within a floodplain and to go beyond that for the City to do that he not sure 34 that is its role. He agreed with Board Member Smith in that public safety should be foremost 35 and if there is an increase how to earmark that money for public safety. 36 37 Board Member Cheek stated that he was not certain the drainage fee needed to be raised to 3 8 increase public safety. 39 40 Chair Newell asked if Coulter could provide a cost to attacking mainly areas which involved 41 critical north south streets. 42 43 Coulter stated that the problem with road structures inmost cases is even if the height of the road 44 is increased over the channel, without improving the channel the water will go around to 45 wherever it was elevated creating a split section of water. It's going to take a huge investment of 46 money. Staff is working on Carroll and trying to get a north south thoroughfare in the 47 community that doesn't flood. 48 49 50 1 Public Utilities Board Agenda 2 May 14, 2007 3 Page 8 of 8 4 5 6 Consensus of the Board was that due to the magnitude of the problem, it could not be addressed 7 with a 10% increase in the drainage budget and that staff should continue with its current 8 drainage program. 9 10 8) Receive a report, hold a discussion and give staff direction on the Solid Waste Fiscal Year 11 2007-08 Operating Budgets and the Fiscal Year 2008-2012 Capital Improvement Program 12 (CIP). 13 14 Vance Kemler, Director of Solid Waste, presented the solid waste budget stating that this is the 15 first time in many years of solid waste refuse services that staff was not coming forward to ask 16 for a rate increase for residential or commercial refuse services. 17 18 Kemler presented highlights of the budget beginning with a population history that pointed out 19 that beginning in 1991 using five year increments, staff wanted to determine that as the 20 population increase occurred, what happened to waste generation and to the amount of waste 21 landfill. Staff found that during 1991-96 the population increased by 5%, in the next five year 22 period,1996-2000, the population increased 33%, and over the next 5 year period increased 23 20%. What staff found interesting was the amount of material landfill during 1991-96 with a 5% 24 increase realized a 25% increase in the amount of waste landfill. The population increase over 25 the next five year period was 3 3 %, yet the landfill amount only increased by 12%, and even 26 more interesting was during 2001-2006 with a population increase of 20%, the amount of landfill 27 waste increased by 3.5%. 28 29 Chair Newell asked what year curbside recycling begin. 30 31 Kemler responded that the curbside recycling and the public education program began in 2002 32 and that it appears that there is a correlation to public education on waste management 33 techniques reuse recycling and a definite decrease in the amount of landfill waste. 34 35 Kemler next discussed service changes. Several years ago the schedule of refuse collection 36 changed to 4 ten hour days and currently provides refuse service on Monday/Tuesday and 3 7 Thursday/Friday. At the time of transition to the 4 ten hour days, a separate crew was 3 8 established to handle brush and bulky items which is a more efficient way to manage that 39 material. As part of that program staff plans to transition to aMonday/Tuesday, 40 Wednesday/Thursday collection days with no collection on Friday. 41 42 Staff is also looking at rebalancing routes because the Friday route now has an excessive number 43 of stops and requires shifting some routes to a Thursday route. This will produce a more 44 balanced workload and require less overtime for the crew. Also, by changing to a 45 Monday/Tuesday, Wednesday/Thursday collection day there is the potential for increased 46 availability of vehicles. 47 48 Kemler next presented the Curbside Recycling program stating that had not been an increase in 49 five years. The budget this year is established on a $2.05 per month contract change. The 50 budget for all recycling services is based on $4.00 per month which represents an expected 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 increase of about 50% in the curbside program. This is the only area staff is looking at rate increases. Kemler did point out an increase of $143,000 in solid waste area customer services utility billing functions. The current year budget is $670,000. Next year's budget is projected to be $814,000 This is an extremely large increase. Should Allied Services not provide curbside recycling staff has an RFP prepared for those services which would include a package requiring vendors to submit a billing cost if the vendor billed its own recycling services which staff and would compare to the in-house cost. Board Member Smith asked the reason for the increase. Kemler replied that in order to provide more information to customers on utility billing a new line was added for recycling fees. That line item costs $3.50 per transaction for every bill that goes out each month which is 26,000 x 12 = 300,000 plus transactions. The ratio of transactions has increased based on the total customer service bill which has increased the allocation of customer service dollars. Kemler then presented the CIP budget for 2008-2012 which totals $9.35 million. The Department has forecasted a FY 2008 bond sale of approximately $1.85 million to fund landfill improvements, lechate recirculation, the gas collection system, residential and commercial recycling containers, and improved site security. 9) ACM Update: 10) New Business -This item provides an opportunity for Public Utilities Board members to suggest items for future agendas or to request information from the Assistant City Manager or uture meetings. 11) Official Action, if necessary, on Closed Meeting item(s) under §§551.071-551.088 of the Texas Government Code, as amended. The meeting was adjourned by consensus at 11:38 a.m. AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 Questions concerning this acquisition maybe directed DEPARTMENT: Materials Management to Frank Payne 349-8946 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of sanitary sewer replacements for Skinner and Wilson Streets; providing for the expenditure of funds therefore; and providing an effective date (Bid 3779- Skinner Street and Wilson Street 8" Sanitary Sewer Replacements awarded to Dickerson Construction Company, Inc. in the amount of $179,277.50). BID INFORMATION The Skinner and Wilson St. 8" Sanitary Sewer Replacement project was funded in 2007 as part of the Community Development Block Grant (CDBG) Program for the purpose of constructing sanitary sewer improvements in Skinner Street from Robertson Street to Prairie Street and in Wilson Street from Bushy Street to Newton Street. The project consists of two parts, Subtotal Bid A and Subtotal Bid B. Subtotal Bid A includes the replacement of 492 feet of 8-inch sanitary sewer line on Skinner Street and Subtotal Bid B includes the replacement of 1,268 feet of 8-inch sanitary sewer line on Wilson Street. The Total Base Bid is the sum of these two subtotal bids. In both cases the existing sanitary sewer lines will be abandoned in place and the existing service lines will be reconnected to the new sewer mes. Bids for the construction phase of this project were received on May 31, 2007. There were a total of four bidders with bids ranging from $179,277.50 to $346,477.00 for the Total Base Bid. The Skinner and Wilson St. 8" Sanitary Sewer Replacement bid summary is included herein as Attachment 1. RECOMMENDATION Award to Dickerson Construction Company, Inc. in the amount of $179,277.50. PRINCIPAL PLACE OF BUSINESS Dickerson Construction Company, Inc Celina, TX. Agenda Information Sheet June 19, 2007 Page 2 STAFF COST ESTIMATE The engineer's opinion of probable construction cost for this project was approximately $185,000.00 for the Total Base Bid. ESTIMATED SCHEDULE OF PROJECT This project is scheduled to begin in July 2007 and end in September 2007. FISCAL INFORMATION Funding for this project is budgeted in the following City of Denton accounts: Skinner Street CDBG Sewer Line: 640108541.1360.40100-$65,000. Wilson Street CDBG Sewer Line: 640110541.1360.40100- $130,000. Respectfully submitted: cam. Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation sheet 1-AIS-Bid 3779 Bid #3779 Date: May 31, 2007 Attachment 1 SKINNER AND WILSON ST. 8" SANITARY SEWER REPLACEMENT Description Vendor Vendor Vendor Vendor Big River Services, Inc. Red Line Services Saber Development Dickerson Construction Place of Business: Saginaw, TX Irving, TX Dallas, TX Celina, TX Skinner Street Subtotal Bid A $96,263.00 $63,245.62 $105,344.00 $54,098.00 Wilson Street Subtotal Bid B $223,114.00 $136,229.44 $241,133.00 $125,179.50 Total Base Bid $319,377.00 $199,475.06 $346,477.00 $179,277.50 Bid Bond Yes Yes Yes Yes ORDINANCE N0. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF SANITARY SEWER REPLACEMENTS FOR SKINNER AND WILSON STREETS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3779-SKINNER STREET AND WILSON STREET 8" SANITARY SEWER REPLACEMENTS AWARDED TO DICKERSON CONSTRUCTION COMPANY, INC. IN THE AMOUNT OF $179,277.50). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3779 Dickerson Construction Company, Inc. 179,277.50 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2007. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER VVALTERS, CITY SECRETARY BY: 3-ORD-Bid 3779 AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Tax ACM: Jon Fortune SUBJECT Consider approval of a tax refund for the following property tax: Name Reason Tax Amount Year 1. Campus Pk Denton Ltd DCAD Supplemental Change 2006 $ 8,121.22 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 $ 8,121.22. Respectfully submitted: Jon Fortune Assistant City Manager CITY OF DENTON CITY COUNCIL MINUTES May 1, 2007 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, May 1, 2007 at 5:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor McNeill; Deputy Mayor Pro Tem Mulroy; Council Members Heggins, McElroy, Montgomery, and Thomson. ABSENT: Mayor Pro Tem Kamp 1. Staff responded to requests for clarification of agenda items listed on the agenda for May 1, 2007. Council Member Thomson indicated he would pull Item E for separate consideration. Mayor Pro Tem Kamp arrived at the meeting. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:35 p.m. to consider the specific items listed below. 1. Closed Meeting: A. Deliberations regarding consultation with the City Attorney -Under TEXAS GOVERNMENT CODE Section 551.071 and Section 551.087 -Deliberations regarding Economic Development Negotiations. 1. Received a report and held a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also held a discussion regarding granting economic development incentives to Allegiance Development with respect to development at Rayzor Ranch. This discussion shall include commercial or financial information the city Council has received from Allegiance Development, which the city Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives. Regular Meeting of the City of Denton City Council on Tuesday, May 1, 2007 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards City of Denton City Council Minutes May 1, 2007 Page 2 Mayor McNeill presented proclamations for National Preservation Week and Drinking Water Week in Denton. 3. CONSENT AGENDA Mayor McNeill indicated that a speaker card had been submitted for Item 3A on the Consent Agenda. Council Member Thomson requested that Item 3E be considered separately. Bob Clifton, 730 Wainwright, Denton, stated that the ordinance being proposed for Item 3A was advocating a reward for bad behavior. He was not in favor of the ordinance. Mulroy motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item E. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. Item E was considered. Council Member Thomson felt that extending the hours of the event to 1 a.m. seemed to be unreasonable. There were many homes in the area and that hour was too late. He would be voting against the proposal. Council discussed a substitute time for ending the event, the type of event that would be held that day, the comparable time frames as the North Texas State Fair event and how the holders of the event would be sensitive to the neighborhood. Montgomery motioned, Kamp seconded to approve 3E as presented. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "nay" and Mayor McNeill "aye". Motion carried with a 6-1 vote. A. 2007-088 - An ordinance amending Sections 2-243 through 2-250 of Article VIII of Chapter 2 of the Code of Ordinances of the City of Denton, Texas, providing for legal defense and indemnification of city officers and employees; providing for a severability clause, providing for a savings clause; and providing for an effective date. B. 2007-089 - An ordinance accepting competitive bids and awarding a public works contract for the relocation of the Morse Street 18 Inch Sanitary Sewer for the City of Denton; providing for the expenditure of funds therefore; and providing an effective date (Bid 3750-Morse Street 18" Sanitary Sewer Relocation awarded to JT Dersner, Inc. in an amount not to exceed $218,612.75). The Public Utilities Board recommended approval (7-0). C. 2007-090 - An ordinance determining a sole source and approving the expenditure of funds for the purchase of hardware to upgrade the Remote Terminal Units (RTUs) at five Denton Municipal Electric Substations available from only one source in City of Denton City Council Minutes May 1, 2007 Page 3 accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3758- Purchase of Remote Terminal Units for Denton Municipal Electric Substations awarded to Advanced Control Systems, Inc. in the amount of $103,198). The Public Utilities Board recommended approval (7-0). D. 2007-091- An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Retired and Senior Volunteer Program to assist with funding the printing and mailing costs of the agency brochure; providing that this program serves a municipal and public purpose; providing for the expenditure of funds and an effective date. ($500.00) E. Approved a request for an exception to the Noise Ordinance for the purpose of a music festival, the 1St Annual Summer Showdown, sponsored by the North Texas State Fair Association, located at 2217 N. Carroll Blvd. The event is to be held on Saturday, June 9, 2007, beginning at 11:00 a.m. and concluding at 1:00 a.m. The exception is specifically requested for extension of the hours of operation. F. R2007-012 - A resolution of the City Council of the city of Denton, Texas, supporting Super Bowl XLV and its related Super Bowl activities in the North Texas Region; and providing for an effective date. 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance regarding the rezoning of approximately 23.84 acres from Rural Residential (RD-5) to a Regional Center Residential 1 (RCR-1) zoning district. The subject property was generally located at the northwest corner of I-35W and Robson Ranch Road. (Z06-0025, Robson Ranch Retail Zoning) The Planning & Zoning Commission recommended approval (7-0). Brian Lockley, Interim Director of Planning and Development, stated that this was a request to rezone from RD-5 to RCR-l. He reviewed the adjacent property zoning. This property was annexed on April 3, 2007 with an initial zoning of RD-5 placed on the property. The difference in the two zoning categories was that retail sales and services were not permitted in RD-5 but were permitted in RCR-1 with limitation in gross square footage area. No letters of opposition had been received regarding the proposal. The Planning and Zoning Commission had recommended approval 7-0. The Mayor opened the public hearing. Joshua Griffith stated that he would answer any questions from Council. The Mayor closed the public hearing. The following ordinance was considered: City of Denton City Council Minutes May 1, 2007 Page 4 N0.2007-092 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ZONING UNDER THE REGIONAL CENTER RESIDENTIAL 1 (RCR-1) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION, APPROXIMATELY 23.84 ACRES, GENERALLY LOCATED ON THE NORTHWEST CORNER OF I-35W AND ROBSON RANCH ROAD, AND LEGALLY DESCRIBED AS A TRACT OF LAND SITUATED WITHIN THE E.PIZANO SURVEY, ABSTRACT N0. 994, DENTON COUNTY, TEXAS AND BEING A PART OF A TRACT OF LAND DESCRIBED IN A DEED FROM BILLIE J. ESTES BRAHMALL TO GELIA ESTES COLEMAN AS RECORDED IN VOLUME 4498, PAGE 205 OF THE REAL PROPERTY RECORDS DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. (Z06-0025) McElroy motioned, Mulroy seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance regarding the rezoning of approximately 0.66 acres of land from a Neighborhood Residential 2 (NR-2) zoning district to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property was located on the southwest corner of Teasley Lane and Old Alton Road (New) intersection. (Z07-0006, Denton Creek Business Park 1) The Planning & Zoning Commission recommended approval (7-0). Mayor McNeill indicated that Item B and C would be presented together. Brian Lockley, Interim Director of Planning and Development, stated that this was proposed rezoning of two parcels- one located on the southwest corner of Teasley Road and Old Alton Road and the other on the southeast corner of Teasley Lane and Old Alton Road. The purpose was to allow for commercial development on the property. The NR-2 residential designation allowed for a few commercial uses while the NRMU designation allowed for retails uses with limitations. Landscaping and tree canopy requirements would have to be met on the portions of property located within the city limits. The Planning and Zoning Commission recommended approval 6-0. The Mayor opened the public hearing. Don Frazier, representing the applicant, indicated that he was available to answer questions. The Mayor closed the public hearing. Item B was considered. The following ordinance was considered: City of Denton City Council Minutes May 1, 2007 Page 5 N0.2007-093 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM NEIGHBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT TO A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT, THE AREA PROPOSED FOR ZONING CHANGE ENCOMPASSING APPROXIMATELY 0.66 ACRES OF LAND LOCATED ON THE SOUTHWEST CORNER OF TEASLEY LANE AND OLD ALTON ROAD (NEW) INTERSECTION, DESCRIBED AS TRACT OF LAND SITUATED IN THE A. E. CANNON SURVEY, ABSTRACT NUMBER 232, CITY OF DENTON, DENTON COUNTY, TEXAS, AND BEING A REMAINDER OF THE CALLED 14.34 ACRE TRACT DESCRIBED IN THE DEED FROM JOHN CORDON BENNETT ET. AL. TO MAR PROPERTIES, LTD RECORDED IN VOLUME 5314 PAGE 5395 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z07-0006) Thomson motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. Item C was considered. The following ordinance was considered: N0.2007-094 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM NEIGHBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT TO A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT, THE AREA PROPOSED FOR ZONING CHANGE ENCOMPASSING APPROXIMATELY 0.55 ACRES OF LAND LOCATED ON THE SOUTHEAST CORNER OF TEASLEY LANE AND OLD ALTON ROAD (NEW) INTERSECTION, DESCRIBED AS TRACT OF LAND SITUATED IN THE A. E. CANNON SURVEY, ABSTRACT NUMBER 232, CITY OF DENTON, DENTON COUNTY, TEXAS, AND BEING A PART OF LOT 1, IN BLOCK A, OF LOTS 1 THROUGH 6, BLOCK A, DENTON CREEK ESTATES AS RECORDED BY A PLAT THEREOF IN CABINET X, PAGE 484, PLAT RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z07-0007) Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance regarding the rezoning of approximately 0.55 acres of land from a Neighborhood Residential 2 (NR-2) zoning district to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property City of Denton City Council Minutes May 1, 2007 Page 6 was located on the southeast corner of Teasley Lane and Old Alton Road (New) intersection. (Z07-0007, Denton Creek Business Park 2) The Planning and Zoning Commission recommended approval (7-0). This item was considered with Item B. D. The Council held a public hearing and considered adoption of an ordinance amending Subchapters 7, 13 and 23 of the Denton Development Code relating to Infill regulations. (DCA05-0005, Infill Regulations) The Planning and Zoning Commission recommended approval (6-0). Brian Lockley, Interim Director of Planning and Development, presented the objectives for the Infill regulations. Those included (1) allowed flexibility in location, type and density, within the densities supported by the Denton Plan and the Denton Development Code; (2) provided flexibility in lot size, configuration and vehicle access to facilitate Infill development; (3) provided development standards that promoted compatibility between new and existing development and promoted certainty in the marketplace; (4) encouraged development of needed housing inclose proximity to employment and services; (5) promoted neighborhood preservation and enhancement through Infill development of vacant properties; (6) encouraged mixed use development opportunities in order to provide housing and neighborhood services close to jobs; (7) encouraged development that met the city's economic development goals; and (8) encouraged neW development as Well as preservation of a diversity of housing types and price ranges in existing neighborhoods. Lockley reviewed the proposed Infill map. The language of the proposed ordinance deleted references to redevelopment, impact fees and minimum lot size. The ordinance was designed to encourage development on vacant parcels in the city. Additions to the language of the ordinance Were discussed and he indicated that the provisions for sidewalks requirements, set back requirements, perimeter paving, and definition of Infill development had been discussed in a prior work session. Other concerns included the approval process for administrative adjustments and appeals and construction of public improvements. The Planning and Zoning Commission approved the proposal Without the yellow highlighted areas in the agenda backup. Council could adopt the ordinance with or without the areas shown In ye OW. Mayor McNeill asked if staff was recommending the yellow areas. Lockley replied yes. Deputy Mayor Pro Tem Mulroy stated that the highlighted areas went along with the matrix presented at the earlier work session. Council Member Thomson questioned the administrative adjustment and appeal process. He asked if the required neighborhood meeting was to take place before or after the adjustment. Lockley stated that the adjustment would be done after the neighborhood meeting so that the neighbors would know what adjustments would be allowed up to 25% of the requirements. Council Member Thomson stated that if the adjustment was more than 25% it would have to receive approval from both the Planning and Zoning Commission and the City Council. He would prefer that it went to a public hearing at Council rather than to the Planning and Zoning Commission. City of Denton City Council Minutes May 1, 2007 Page 7 The Mayor opened the public hearing. Mayor McNeill indicated that a Comment Card had been received from Elise Ridenour, 2044 W. Oak Street, Denton, 76201, who opposed the proposal indicating that a 200' notice for an administrative adjustment would more fairly serve existing property owners. Steven Friedson, 2044 W. Oak Street, Denton, 76201, spoke during the public hearing. He felt that the neighborhood meeting requirements needed to be firmer with additional language. There should be provisions for a required notice to residents 200' from a proposed infill and a 500' courtesy notice. Mayor McNeill asked if the 25% administrative adjustment was for an already approved plan. Lockley replied no that it was before plan approval. Deputy Mayor Pro Tem Mulroy suggested adding language for notice requirements and for neighborhood meetings. The Planning Department should participate in the meeting and take minutes of the meeting. City Attorney Snyder suggested amending the wording to include record property owners within 500 feet of the proposed infill property would be notified of a neighborhood meeting. That meeting would be attended by one or more City Planners, prior to the approval by the Development Review Committee chair. If protests received at the neighborhood meeting included those of the record owners of 20% or more of the property lying within 200 feet of the proposed infill property, the hearing before the Planning and Zoning Commission would incorporate a public hearing. Adjustments in excess of 25% would require approval of both the Planning and Zoning Commission and the City Council. The Mayor closed the public hearing. The following ordinance was considered: N0.2007-095 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING PORTIONS OF SUBCHAPTER 35.7, 35.13 AND 35.23 OF THE DENTON DEVELOPMENT CODE, PERTAINING TO AN INFILL SPECIAL USE DISTRICT; PROVIDING FOR A PENALTY CLAUSE wITH THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (DCA 05-0005) Mulroy motioned, Thomson seconded to adopt the ordinance as recommended by staff with the highlighted areas of the proposal included. Additional language for public hearings, city participation in neighborhood meetings and notification requirements would be added as recommended by the City Attorney. On ro11 vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimous y. City of Denton City Council Minutes May 1, 2007 Page 8 E. The Council held a public hearing and considered adoption of an ordinance amending the Denton Development Code concerning the standards and processes for allowing gated residential communities. (DCA06-0015, Gated Communities) The Planning and Zoning Commission recommended approval (6-0). Brian Lockley, Interim Director of Planning and Development stated that several developers were interested in properties with gated communities. Staff had been working on an ordinance since September to address concerns gated communities might present from a city perspective and a neighborhood perspective. He reviewed the requirements for a gated community as presented in a prior work session. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: N0.2007-096 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING PORTIONS OF SUBCHAPTER 33.16 OF THE DENTON DEVELOPMENT CODE, PERTAINING TO STANDARDS AND PROCESSES FOR ALLOWING GATED RESIDENTIAL COMMUNITIES AND PRIVATE STREETS; PROVIDING FOR A PENALTY CLAUSE WITH THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE (DCA06-0015). Mulroy motioned, Kamp seconded to adopt the ordinance as presented including the removal of Sections 3 and 4 on the last page of the ordinance as submit in the agenda backup materials. On ro11 vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the furnishing and installation of LED Traffic Signal Lights from Durable Specialties, Inc. and providing an effective date (Requisition No. 80409) to Durable Specialties, Inc. in the amount of $62,143.00. Jim Coulter, Director of WaterlVVastewater, stated that the lights were more efficient and lasted longer than previous types. The State was requiring the City to make these changes with the City being reimbursed for this project. The following ordinance was considered: City of Denton City Council Minutes May 1, 2007 Page 9 N0.2007-097 AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE FURNISHING AND INSTALLATION OF LED TRAFFIC SIGNAL LIGHTS FROM DURABLE SPECIALTIES, INC. AND PROVIDING AN EFFECTIVE DATE. Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. B. The Council considered nominations/appointments to Boards, Commissions and Committees. 1. Public Art Committee -Mayor Pro Tem Kamp Mayor Pro Tem Kamp nominated Robyn Lee. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. C. Citizen Reports 1. Council reviewed the procedures for addressing the City Council. 2. The Council received citizen reports from the following: A. Jordan Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth did not have comments. B. Lanisha Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth did not have any comments. C. Hagar Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth did not have any comments. D. Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth felt that the Council was in violation of the Open Meeting provisions in regards to proclamations and awards. He felt they should be individually noticed on the agenda. He also commented again on the lack of African American firefighters in the City of Denton. It did not appear that the City was willing to change testing procedures that were stacked against African Americans. Council refused to correct this injustice. E. Robert Donnelly regarding City services. Mr. Donnelly spoke about garbage pick-up fees. He was informed that Denton residents must pay to have garbage picked up. He did not like being charged for a service he did not want. He suggested Council consider a provision for an opt-out clause for services not wanted. He asked City of Denton City Council Minutes May 1, 2007 Page 10 for an option to opt out of the required service as the garbage trucks could not get down his road and he had to take his cart all the way out to Mayhill Road. D. New Business and Announcements The following items of New Business were suggested by Council for future agendas: Council Member Heggins requested a report on the placement of citizen reports at the beginning of the meeting instead of at the end. Council complimented staff, especially the Parks staff, on getting the park ready for Arts and Jazz Fest in view of all the recent rain. E. City Manager's Report City Manager Campbell did not have any items for Council. F. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of Closed Meeting. G. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting Items. With no further business, the meeting was adjourned at 8:35 p.m. PERRY R. MCNEILL MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES May 15, 2007 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, May 15, 2007 at 5:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor McNeill; Mayor Pro Tem Kamp; Deputy Mayor Pro Tem Mulroy; Council Members Heggins, Montgomery, and Thomson. ABSENT: Council Member McElroy 1. Staff responded to requests for clarification of agenda items listed on the agenda for May 15, 2007. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:02 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Consultation with Attorney -Under TEXAS GOVERNMENT CODE Section 551.071. 1. Consulted with attorneys regarding safety procedures and avoidance of liability claims. B. Consultation with Attorney -Under TEXAS GOVERNMENT CODE Section 551.071 and Deliberations regarding Real Property - Under TEXAS GOVERNMENT CODE Section 551.072. 1. Legal advice from the City Attorney relating to the Animal Shelter Agreement, facilities, and location and deliberations regarding the purchase or value of real property for a proposed animal shelter. C. Consultation with Attorney -Under TEXAS GOVERNMENT CODE Section 551.071 and Deliberations regarding Real Property - Under TEXAS GOVERNMENT CODE Section 551.072. 1. Legal advice from the City Attorney relating to the lease of City right-of way for property at 207 North Elm and deliberations regarding the lease of City property. D. Deliberations regarding consultation with the City Attorney -Under TEXAS GOVERNMENT CODE Section 551.071 and Section 551.087 -Deliberations regarding Economic Development Negotiations. 1. Received a report and held a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding granting economic development incentives to Allegiance City of Denton City Council Minutes May 15, 2007 Page 2 Development with respect to development at Rayzor Ranch. This discussion shall include commercial or financial information the city Council has received from Allegiance Development, which the city Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives. E. Deliberation regarding personnel matters -Under TEXAS GOVERNMENT CODE section 551.074. 1. Deliberated the evaluation of candidates for the Internal Auditor position including the selection, employment, and evaluation of a future Internal Auditor. Regular Meeting of the City of Denton City Council on Tuesday, May 15, 2007 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards B. May Yard-of the-Month Awards Mayor McNeill presented the Yard of the Month awards for May. 3. CONSENT AGENDA Thomson motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. A. 2007-098 - An ordinance of the City of Denton, Texas amending the provisions of Chapter 16 relating to licenses, permits, and business regulations by amending Section 16-78 to limit the exemption for agricultural vendors and youth organizations; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. B. 2007-099 - An ordinance providing for the expenditure of funds for the emergency purchase of two automatic defibrillators for the Denton Fire Department in accordance with provisions of State Law exempting such purchases from requirements of competitive bidding; and providing an effective City of Denton City Council Minutes May 15, 2007 Page 3 date (File 3792-Emergency Purchase of Two Automatic Defibrillators for the City of Denton Fire Department awarded to eMED in the amount of $29,000). C. 2007-100 - An ordinance determining a sole source and approving the expenditure of funds for the purchase of radios for the City of Denton Fire Department available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3553-Purchase of Radios for Fire Department awarded to Motorola in the amount of $101,133). D. 2007-1 O l - An ordinance determining a sole source and approving the expenditure of funds for the purchase of seventy traffic signal controllers for the City of Denton Traffic Department available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3780-Purchase of Traffic Signal Controllers awarded to Paradigm Traffic Systems in the amount of $142,800). E. R2007-013 - A resolution by the City of Denton, Texas, authorizing the City Manager to sign and submit to the Department of Housing and Urban Development a 2007 Action Plan for Housing and Community Development with appropriate certifications, as authorized and required by the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended; and providing for an effective date. F. Approved a request for an exception to the Noise Ordinance for the purpose of playing music and operating a public address system during the Juneteenth Celebration. The celebration is sponsored by the Juneteenth Committee. The event will be located in the Fred Moore Park on Friday, June 15, 2007, beginning at 6:00 p.m. and concluding at 11:00 p.m., and on Saturday, June 16th beginning at 11:00 a.m. and concluding at 12:00 p.m. The request is for an exception to the hours of operation and an increase in sound decibels to 75 dbls. G. 2007-102 - An ordinance of the City of Denton, Texas amending the provisions of Chapter 4 relating to Alarm Systems by amending Section 4-29 to remove the exception waiving the permit fee for residential alarm permits for residents over the age of 65; by amending Section 4-62 to reduce the number of false burglar alarms allowed before a penalty may be assessed from five to three prior false burglar alarms; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this Ordinance; and providing for an effective date. H. 2007-102 - An ordinance of the City of Denton, Texas, establishing fees to be charged for annual Alarm Permits as provided for in Sec. 4-26 and 4-29 of Article II of Chapter 4 "Alarm Systems" of the Code of Ordinances of the City of Denton, Texas; providing for a severability clause; providing a repealer clause; providing a savings clause; and providing for an effective date. I. Approved tax refunds for the following property taxes: City of Denton City Council Minutes May 15, 2007 Page 4 Name Reason Tax Amount Year 1. Lennal° Homes of Texas Overpayment 2005 $ 4,389.44 2. GE Capital Information Tech DCAD Supplemental Change 2006 $ 2,362.63 J. Approved the Parks, Recreation and Beautification Board recommendation to select George Caddell as the artist for the most recent public art sculpture for the City of Denton. Project budget not to exceed $25,000. The Parks, Recreation and Beautification Board recommended approval (5-0). K. Approved a request for an exception to the Noise Ordinance for the purpose of a music festival, Fry Street Concert Series, conducted by D.H.S. Entertainment in the area of Fry Street, behind Lucky Lou's and Riprocks. The event is to be on Saturday, May 19, 2007, from 2:00 p.m. to 8:30 p.m. The exception is specifically requested for an increase in the maximum allowable decibels for an outdoor music festival from 70 decibels to 75 decibels. L. 2007-104 - An ordinance authorizing the acquisition in Fee Simple, through agreement or eminent domain for municipal purposes, including public utility and drainage purposes, in an approximate 0.257 acre tract of land located in the Gideon Walker Survey, Abstract Number 1330, Denton County Texas and being a parcel of land conveyed to Randy C. Snider, by Deed Recorded Under County Clerk's File Number 96-R0016095, Real Property Records, Denton County, Texas; authorizing the City Attorney or his designee to do all things necessary and appropriate to acquire the property through agreement or eminent domain. The Public Utilities Board recommended approval (7-0). M. Approved the minutes of: April 10, 2007 April 17, 2007 April 23, 2007 N. 2007-105 - An ordinance of the City of Denton, Texas, approving the 2008 Budget of the Denton Central Appraisal District; and providing an effective date. 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance regarding the rezoning of approximately 3.3 acres from a Downtown Residential 1 (DR-1) zoning district to a Downtown Commercial General (DC-G) zoning district. The property was located on the west side of Carroll Boulevard, south of Eagle Drive and north of Collins Street. (Z07-0008, Eagle Crossing) The Planning & Zoning Commission recommended approval (7-0). Brian Lockley, Interim Director of Planning and Development, stated that this was a request to rezone a 3.3 acre parcel on Carroll Blvd. The subject property was comprised of six lots, under a single ownership. The applicant intended to develop the site with retail and/or office uses. If adopted, the property would match and be consistent with property to the east and in the same family of zoning as the property to the west. The Planning and Zoning Commission City of Denton City Council Minutes May 15, 2007 Page 5 recommended approval with the condition that an 8-foot high fence on the western boundary of the property be constructed. The Mayor opened public hearing. The following individuals spoke during the public hearing: Steve McNeill, 2303 Bradwood Court, Arlington, 76011- in favor. Jeremy Sain, 309 West Hickory, Denton, 76201- in favor The Mayor closed the public hearing. The following ordinance was considered: N0.2007-106 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM A DOWNTOWN RESIDENTIAL 1 (DR-1) ZONING DISTRICT TO A DOWNTOWN COMMERCIAL GENERAL (DC-G) ZONING DISTRICT WITH AN OVERLAY CONDITION, THE AREA PROPOSED FOR ZONING CHANGE ENCOMPASSING 3.310 ACRES OF LAND LOCATED ON THE SOUTHWEST CORNER OF CARROLL BOULEVARD AND EAGLE DRIVE INTERSECTION AND LEGALLY DESCRIBED AS TRACTS 216, 217, 218, 219 AND 220 OF THE A. HILL SURVEY, ABSTRACT NUMBER 623, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z07-0008) Mulroy motioned, Heggins seconded to adopt the ordinance as presented. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance regarding a Comprehensive Plan Amendment from a "Neighborhood Centers" land use designation to a "Regional Mixed Use Centers" land use designation on a 7.6-acre tract of land located on the northeast corner of Crawford Road and I-3 5 W. The property was currently undeveloped and the owner proposes the eventual development of commercial land uses. (CA07- 0002, Crawford Retail). The Planning & Zoning Commission recommended approval (7-0). Mayor McNeill stated that the public hearings for Items B and C would be held together. Brian Lockley, Interim Director for Planning and Development, stated that the applicant was requesting a comprehensive plan amendment from a neighborhood center land use designation to a regional mixed use center land use designation. The property was currently undeveloped with future commercial uses proposed. Plans for the proposed site were still in a conceptual stage. The Planning and Zoning Commission recommended approval. In an associated case, the applicant was requesting a zoning change from a Neighborhood Residential Mixed Use Zoning District to Regional Center Commercial Zoning District. City of Denton City Council Minutes May 15, 2007 Page 6 The Mayor opened the public hearing. The following individuals spoke during the public hearing: Patti Martin, 9905 Soriano Street, Denton, 76207 -support J. Rose, 16475 Dallas Parkway, Addison -support A comment card was submitted from Yusufzai Oscar, 1444 Van Winkle Drive, Carrollton, 76204, in opposition. The Mayor closed the public hearings. The following ordinance was considered: N0.2007-107 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A COMPREHENSIVE PLAN AMENDMENT FROM NEIGHBORHOOD CENTERS LAND USE TO A REGIONAL MIXED USE CENTERS LAND USE, ENCOMPASSING APPROXIMATELY 7.5972 ACRES OF LAND LOCATED AT THE NORTHEAST CORNER OF CRAWFORD ROAD AND INTERSTATE 35 WEST INTERSECTION, DESCRIBED AS A TRACT OF LAND SITUATED IN THE ELIZANO PIZANO SURVEY, ABSTRACT N0. 994, CITY OF DENTON, DENTON COUNTY, TEXAS; SAID TRACT BEING ALL OF THAT A CERTAIN TRACT OF LAND DESCRIBER IN SPECIAL WARRANTY DEED WITH VENDOR'S LIEN TO I-35 AND CRAWFORD ROAD PARTNERS, LTD., RECORDED IN VOLUME 4163, PAGE 268 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING FO SEVERABILITY AND AN EFFECTIVE DATE. (CA 07-0002) Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance regarding the rezoning of an approximately 7.6-acre tract of land from a Neighborhood Residential Mixed Use (NRMU) zoning district to a Regional Center Commercial-Neighborhood (RCC-N) zoning district located at the northeast corner of Crawford Road and Interstate 35W. The property was currently undeveloped and the owner proposed the eventual development of commercial land uses. (Z07-0002, Crawford Retail). The Planning & Zoning Commission recommended approval (6-1) with the condition that retail uses be limited to 25,000 square feet. The public hearing was considered with Item B. The following ordinance was considered: City of Denton City Council Minutes May 15, 2007 Page 7 N0.2007-108 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION TO A REGIONAL CENTER COMMERCIAL NEIGHBORHOOD (RCC-N) ZONING DISTRICT CLASSIFICATION WITH OVERLAY CONDITIONS, THE AREA PROPOSED FOR ZONING CHANGE ENCOMPASSING APPROXIMATELY 7.5972 ACRES OF LAND LOCATED AT THE NORTHEAST CORNER OF THE INTERSECTION OF CRAWFORD ROAD AND INTERSTATE 35 WEST, DESCRIBED AS A TRACT OF LAND SITUATED IN THE ELIZANO PIZANO SURVEY, ABSTRACT N0. 994, CITY OF DENTON, DENTON COUNTY, TEXAS; SAID TRACT BEING ALL OF THAT CERTAIN TRACT OF LAND DESCRIBED IN SPECIAL WARRANTY DEED WITH VENDOR'S LIEN TO I-35 AND CRAWFORD ROAD PARTNERS, LTD. RECORDED IN VOLUME 4163, PAGE 268 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z07-0002) Mulroy motioned, Montgomery seconded to adopt the ordinance as presented with the overlay district restricting the size of any retail establishment, not including a hotel, to 2500 square feet. On ro11 vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance regarding a Comprehensive Plan Amendment from "Neighborhood Centers" to "Regional Mixed Use Centers" and "Neighborhood Centers" land use designations on approximately 257 acres of land located on the south side of U. S. Highway 3 80 (West University Drive) between Interstate Highway 35 and Bonnie Brae Street. The site was currently zoned a combination of Neighborhood Residential 6 (NR-6) and Neighborhood Residential Mixed Use (NRMU) zoning districts. The Planning and Zoning Commission recommended approval (7-0). Brian Lockley, Interim Director of Planning and Development, stated that Items D and E would be discussed together. Item D was a Comprehensive Plan Amendment for the southern half of the property and Item E was an amendment of the overlay district to enhance existing and create new standards that would ensure a quality development to enhance and protect the property in accordance with Subchapter 7 of the Denton Development Code. He reviewed the site plan for both the north and south portions. The north parcel would include residential uses, a park with a water feature, big box uses with in-line retail and out parcels for single use retail services. The southern parcel would include out parcels, a regional mall with anchor stores on site, park space, office uses, a proposed continuing care facility, a hotel and residential uses both multifamily and single family. The Mayor opened the public hearings. The following individuals spoke during the public hearings: City of Denton City Council Minutes May 15, 2007 Page 8 Betty Wright,1805 Crescent Street, Denton 76201-favor Dalton Allen, l l l Lexington Lane, Denton, 76205 -favor Jurhee Curtis, P.O. Box 311068, Denton, 76203 -favor Randy Holcombe, applicant -favor Alex Payne, 923 Ridgecrest, Denton, 76201-favor Pat Cheek, 1220 Tulane, Denton, 76201-favor Greg Johnson, 3200 Belmont, Denton, 76210 -favor Billie Ann Kasper, 2816 Southridge Drive, Denton, 76210 -opposed Aida and Joaquin Zihaurtanejo, 3309 Dunes, Denton 76209 -opposed Jackie Tomme, 123 Indian Paint Drive, Justin, 76247 -opposed Larry Feldman, l Ol 0 Northern Blvd., Great Neck, New York,11771- opposed Sammie Harsen, 804 Hillcrest, Denton, 76201-opposed Atticus Cox, 3900 Winston Drive, Denton, 76205 -opposed Ray Twehous, 607 Magnolia, Denton, 76201-favor Andrea Breedlove, 414 Audra Lane, Denton, 76201-opposed Joe Camper, developer -favor A comment card was submitted by John Paul Eddy, 1320 Heather Lane, Denton, 76209. Randy Holcomb was allowed a five minute rebuttal. Jan Carrington spoke in favor. The Mayor closed public hearing Council Member Thomson felt that there was a need for more shopping on the north side of the city. He was pleased that there would be a quality type of mall in the area. He felt that demographic studies indicated the support for two malls. The following ordinance was considered: N0.2007-109 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR AN AMENDMENT TO THE FUTURE LAND USE PLAN OF THE LAND ELEMENT OF THE DENTON PLAN FOR THE CITY OF DENTON, TEXAS, THE AREA FOR AMENDMENT ENCOMPASSING A 256.91 ACRE TRACT OF LAND GENERALLY LOCATED ON THE EAST SIDE OF IH-35, SOUTH OF WEST UNIVERSITY DRIVE/U.S. 380 AND WEST OF BONNIE BRAE STREET, AND MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS IN EXHIBIT "A" AND DEPICTED ON EXHIBIT "B", BOTH OF WHICH ARE ATTACHED HERETO AND INCORPORATED BY REFERENCE HEREIN; AND PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. (CA06-0008) Thomson motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. City of Denton City Council Minutes May 15, 2007 Page 9 E. The Council held a public hearing and considered the adoption of an ordinance amending the provisions applicable to a Special Purpose Overlay District Classification, encompassing approximately 410 acres of land located generally on the north and south sides of U.S. Highway 380 (West University Drive), between Interstate Highway 35 and Bonnie Brae Street; providing for a zoning change on approximately 223 acres of land located therein from Neighborhood Residential 6 (NR-6), Neighborhood Residential Mixed Use 12 (NRMU-12), Neighborhood Residential Mixed Use (NRMU) and Community Mixed Use General (CM-G) zoning districts to a base zoning district of Regional Center Commercial Downtown (RCC-D), as well as the amended Rayzor Ranch Overlay District; amending Chapter 35, Subchapter 7.13 of the City of Denton Code of Ordinances, "Denton Development Code", Special Purpose and Overlay Districts" to amend section 35.7.13 "Rayzor Ranch Overlay District": providing a severability clause; providing a penalty in the maximum amount of $2,000.00 for violations thereof; and an effective date.(Z06-0029 and Z06-0030). The Planning & Zoning Commission recommended approval (7-0). The public hearing for this item was held with Item D. The following ordinance was considered: N0.2007-110 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, REZONING APPROXIMATELY 223 ACRES OF LAND LEGALLY DESCRIBED IN EXHIBIT "B", ATTACHED HERETO, FROM THE EXISTING NRMU-12, NRMU, CM-G AND NR-6 ZONING CLASSIFICATIONS AND USE DESIGNATIONS TO THE RCC-D ZONING CLASSIFICATION AND USE DESIGNATION, AS MODIFIED BY THE TERMS OF THE RAYZOR RANCH OVERLAY DISTRICT CLASSIFICATION HEREIN AMENDED; AMENDING BY SUPERSEDURE CHAPTER 35, SUBCHAPTER 7.13 OF THE CITY OF DENTON CODE OF ORDINANCES, "DENTON DEVELOPMENT CODE: "SPECIAL PURPOSE AND OVERLAY DISTRICTS"; PROVIDING FOR THE REGULATION OF LAND USES AND DEVELOPMENT STANDARDS FOR THE RAYZOR RANCH OVERLAY DISTRICT; APPROVING AND AUTHORIZING EXECUTION, AMENDMENT AND RECORDATION OF A DEVELOPMENT AGREEMENT ATTACHED AS EXHIBIT M AND REMOVAL OF THE TEXT OF SECTION 35.7.13.3.A.5 OF THE DENTON DEVELOPMENT CODE UPON SUCH OCCURRENCE WITHOUT THE NECESSITY OF FURTHER COUNCIL ACTION; PROVIDING FOR SEVERABILITY; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. Mayor Pro Tem Kamp felt both malls could coexist. It was not an either/or situation. Deputy Mayor Pro Tem Mulroy stated he was in favor of the amendment. The developer could not wait until the residential section was completed as he would not be able to afford the retail. Mayor McNeill stated he was pleased with both projects. He was excited about the mall renovation and the new mall in the north. He felt growth was coming to this area and that Denton would be able to support both retail areas. City of Denton City Council Minutes May 15, 2007 Page 10 Council Member Montgomery felt that these changes would keep shoppers from going outside the Denton area to shop. Mulroy motioned, Thomson seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. Item SC was considered C. The Council considered adoption of an ordinance establishing an Economic Development Program under Chapter 380 of the Local Government Code for making grants of public money to promote economic development and to stimulate business activity in the City of Denton; approving an economic development Program Grant Agreement with Allegiance Development regarding the development of an approximate 410 acre parcel of land generally located on both sides of US Highway 3 80 (West University Drive) between I-3 5 and Bonnie Brae; authorizing the expenditure of funds therefor; and providing an effective date. Linda Ratliff, Director of Economic Development, presented an overview of project. She stated that Allegiance Development had requested an economic development incentive to assist in the cost of constructing public infrastructure related to the development of Rayzor Ranch Marketplace and Town Center. Deputy Mayor Pro Tem Mulroy wanted the public to be aware that a maj ority of the money would be used for streets which was advantageous for the public. Ratliff replied that was correct plus for drainage, utilities and the widening of Bonnie Brae. Deputy Mayor Pro Tem Mulroy indicated a portion would be used for park improvements at North Lakes Park. Ratliff stated yes that in addition to other improvements, there would be improvements to the dam, pavilion, docks for the parks and the development of trails. The following individuals submitted Speaker Cards: Alex Payne, 923 Ridgecrest Circle, Denton, 76205 -favor Steve Stone, 6327 Freeman Road, Krum, 76249 -favor Comment Cards were submitted by: John Ryan, 2128 Emerson, Denton, 76209 -support Jimmie Brown, 23 04 Vanderbilt Court, Denton, 76201- support Ruth Bowen,1406 Startford, Denton, 76209 -favor Larry Feldman, 1010 Northern Blvd., Great Neck, New York, 11771 -opposed and requested postponement to work out agreement for stores at mall. Mike Lynn, 750 N. St. Paul, Dallas, 75201-opposed Shane Pollock, 8005 Hidden Path Lane, Denton, 76210 -opposed City of Denton City Council Minutes May 15, 2007 Page 11 Edwina Lowry, 9708 Amber Court, Denton, 76207 -opposed Mayor McNeill stated that this proposal dealt with sales tax incentives and not property taxes. It was not the place for Council to tell business what it could or couldn't do. The following ordinance was considered: N0.2007-113 AN ORDINANCE ESTABLISHING AN ECONOMIC DEVELOPMENT PROGRAM UNDER CHAPTER 380 OF THE LOCAL GOVERNMENT CODE FOR MAKING GRANTS OF PUBLIC MONEY TO PROMOTE ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS ACTIVITY IN THE CITY OF DENTON; APPROVING AN ECONOMIC DEVELOPMENT PROGRAM GRANT AGREEMENT WITH ALLEGIANCE DEVELOPMENT REGARDING THE DEVELOPMENT OF AN APPROXIMATE 410 ACRE PARCEL OF LAND GENERALLY LOCATED ON BOTH SIDES OF US HIGHWAY 380 (WEST UNIVERSITY DRIVE) BETWEEN I-35 AND BONNIE BRAE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. Thomson motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. Council returned to the regular agenda order. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance of the City of Denton, Texas, granting, pursuant to Section 20-1(e)(1)b of the Code of Ordinances of the City of Denton, Texas, an exception to the limitations imposed by that section with respect to sound levels and hours of operations for an outdoor music festival; and providing an effective date. The North Texas State Fair Association was requesting athree-year exception (years 2007-2009) for the North Texas State Fair and Rodeo, which begins on the third Friday of August and ends on the fourth Sunday of August. The exception requested was from 12:00 midnight, Monday through Thursday, 1:00 a.m. Friday and Saturday, and 11:00 p.m. on Sunday. The following ordinance was considered: N0.2007-111 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, GRANTING, PURSUANT TO SECTION 20-1(E)(1)B OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, AN EXCEPTION TO THE LIMITATIONS IMPOSED BY THAT SECTION WITH RESPECT TO SOUND LEVELS AND HOURS OF OPERATIONS FOR AN OUTDOOR MUSIC FESTIVAL; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes May 15, 2007 Page 12 Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. B. The Council considered adoption of an ordinance of the City of Denton, Texas, renaming the Phoenix Park, and declaring an effective date. (The Parks, Recreation and Beautification Board recommended approval (6-0). Emerson Vorel, Interim Director of Parks and Recreation, stated that at the February Parks and Recreation meeting, Council Member Heggins requested a name change of the Phoenix Park to the Carl G. Young, Sr. Park. This proposal had been well publicized with signs posted in the park, ads in the Denton Record-Chronicle, messages on the electronic board, and links on the park website. Fourteen positive responses had been received and four opposed. Of those four in opposition, three had suggested alternative names and one suggested changing the renaming policy. Staff was currently working on a new policy for naming procedures. The following ordinance was considered: N0.2007-112 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, RENAMING THE PHOENIX PARK, AND DECLARING AN EFFECTIVE DATE. Heggins motioned, Mulroy seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNei11 "aye". Motion carried unanimously. C. Citizen Reports 1. Council reviewed procedures for addressing the City Council. 2. Council received citizen reports from the following: A. David Johnson regarding the recent flood. Mr. Johnson was not present at the meeting. B. Nell Yeldell regarding Code Enforcement and replatting of property. Ms. Yeldell spoke about platting and the definition of platting. She felt it was not possible to change the plat map without the property owner's permission. She felt Code Enforcement did not have the right to send out letters to older people regarding their property. People renting homes should take care of their own property and it was not her responsibility as the property owner to do so. City of Denton City Council Minutes May 15, 2007 Page 13 C. Robert Donnelly regarding city services. Mr. Donnelly spoke again on solid waste and trash pickup at his property. He had information that when the southern portion of the Denton North annexation was done, there were 60 residences annexed, 43 names of people in that annexation, and when compared with solid waste records, only 6 individuals were paying for solid waste. If he couldn't opt out of solid waste service, he needed something from the City to hold him harmless when he placed his waste containers out on Mayhill Road. D. New Business and Announcements The following items of New Business were suggested by Council for future agendas: Mayor McNeill requested information regarding the annexation policy and the procedure to allow current solid waste contractors to the service area. Mayor McNeill requested a memo verifying the hours of collection for solid waste. Mayor McNeill requested a work session on the results of the Leadership Denton report. E. City Manager's Report City Manager Campbell did not have any items for Council. F. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. G. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 9:36 p.m. PERRY R. MCNEILL MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY City of Denton City Council Minutes May 15, 2007 Page 14 CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES May 22, 2007 The City of Denton City Council convened in the Work Session Room on Tuesday, May 22, 2007 at 5:30 p.m. to attend a reception honoring City Council. After determining that a quorum was present, the City of Denton City Council convened in a Special Called Meeting on Tuesday, May 22, 2007 at 6:30 p.m. in the Council Chambers at City Hall. PRESENT: Mayor McNeill; Mayor Pro Tem Kamp; Deputy Mayor Pro Tem Mulroy; Council Members Heggins, Mc Elroy, Montgomery, and Thomson. ABSENT: None 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. The Council considered adoption of an ordinance canvassing the returns and declaring the results of the Regular Municipal Election to elect four City Council members to Places 1, 2, 3, and 4 of the City Council of the City of Denton, Texas, held in the City of Denton on May 12, 2007; and providing an effective date. Jennifer Walters, City Secretary, read into the record the vote totals for the four districts. The following ordinance was considered: N0.2007-114 AN ORDINANCE CANVASSING THE RETURNS AND DECLARING THE RESULTS OF THE REGULAR MUNICIPAL ELECTION TO ELECT FOUR CITY COUNCIL MEMBERS TO PLACES 1, 2, 3, AND 4 OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HELD IN THE CITY OF DENTON ON MAY 12, 2007; AND PROVIDING AN EFFECTIVE DATE. McElroy motioned, Mulroy seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", McElroy "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor McNeill "aye". Motion carried unanimously 3. Oath of Office administered to newly elected Council Members. Jennifer Walters, City Secretary, administered the oath of office to the following: District 1- Charlye Heggins; District 2 -Pete Kamp; District 3 -Jack Thomson; and District 4 -Chris Watts. 4. Election of Mayor Pro Tempore. Council Member Thomson nominated Pete Kamp for Mayor Pro Tempore. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye", Watts "aye" and Mayor McNeill "aye". Motion carried unanimously City of Denton City Council Minutes May 9, 2000 Page 2 5. Election of Deputy Mayor Pro Tempore. Mayor Pro Tem Kamp nominated Joe Mulroy for Deputy Mayor Pro Tempore. On roll vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" ,Watts "aye" and Mayor McNeill "aye". Motion carried unanimously 6. Consider approval of Resolutions of Appreciation for Council. Mayor McNeill presented a Resolution of Appreciation for Guy McElroy. Kamp motioned, Mulroy seconded to approve the resolution. On ro11 vote, Heggins "aye", Kamp "aye", Montgomery "aye", Mulroy "aye", Thomson "aye", Watts "aye" and Mayor McNeill "aye". Motion carried unanimously With no further business, the meeting was adjourned at 6:50 p.m. PERRY R. MCNEILL MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS s:laur ~~cumentsliscelianeausl0?1DG1907 atm ais.doc AEI~DA INFDRMATI01~ SHEET 1 S V ~1 i ~~ 1 ~ e V ~ ~ ~ •~ Lf ~a~ DEPARTMENT: legal Deat~ment ~M~DMI1~M: Sohn ~, Knight, Senor ~.ssistant 1ty Attorney SUBJECT: onsxder approval of a resolution of ,~ pity of Denton, Texas .autharizin the . ~ ~ 1 denial of ~tmo Energy orporat~an s iVI~d~Te~ Division's ~"Atos Mid-Tex"} ~eliahi~~t Infrastructure Program adjustments for calendar year aaG; authorizing participation a coalition of cities 1~nawn as Atn~os Texas Municipalities ~"ATM"~; authorizing the Kirin of .. lawyers and rate experts; author~~~.g the 1ty's participation to the full extent permitted by law at the Railroad omn~issian of Texas in STD Docl~et Nos. 9734 ar~d 97~~; requirin the • , , • k/ rexrribursement of mun~c~pal rate case expenses; finding that the meeting complied with the open Meetings pct; making other findings and provisions related to the subject; and dec~arin an effective date BA~I~I~~UND; Two mare has Reliability Infrastructure Program {"R]P"~ filings were made by Atrnas Energy an May ~ ~, Zaa7. conveniently these filings were rriade within three days of the end of the legislative session. The filing ~y Atos Mid-Tex Division with. the pity Secretary calls for a monthly increase of. ~a~ 59 cents far residential customers; ~~} ~ .4S for cai~nn~.ercial customers and $5.90 for industrial customers. The film b Atinos' Pi eline g y P Division was made at the Railroad omn~ission of Texas, In that filing Atn~os is requesten that . 4 ~ ~ . . an additiana~ ~g9 million be placed in its rate base. This is far cost allegedly related to the investment 1>7. transiss1on pipe or pipe h1c~1 is not lcluded 1n the M1d~Tex distr~but7an system, The Railroad ~onnnission Found ~ the last Atinos general rate case that the an~pany had i`mpraperly included expenses related to alcohol, hotel roans, sporting events and high dollar ~neal5ln its ~xR~P f~tings. 1~t this point it appears that the mast appropriate action is to deny the requested CHIP adjustment by the Mid-Tex Division of ~.tmas. The carrent law does not allow enough time far tharau ~ . . . r discovery before local regulatory authorities ~inunicipalities~. ~ the past the Railroad ~omissian has refused to allow municipalities the opportunity to intervene. ATM believes that the position taken by the ~R on tills issue is in error. Frzor TRIP rulings to this effect are on appeal. In order to avoid any inconsistency with Its ~, ellate . Pp position, ATM recommends that it be authorized to intervene in the R~' proceedings which are pending at the an~ssian. S:l~ur Documen~slMisc~llane~us1~710~i90?ATM AFS.doc The AT.1V~ Cities reeom~end that the ouncrl den~r the requested increase ~ rates b the id- . . ~ i * O Tex ~iv~slon and that the Pipeline D~vi~ion of Atmo be required to prove that the increase in invested capital xs consistent with eetio~ 1 ~4.~0 l of the has Uti~~tiy Re ato A.ct as well a a other pert1nent provisions. ~IPT~~N; Approve the Resolution as proposed, not approve the resolution, or nuke modifications. l~E1V~~NDATIN: 'e reeonimend approval of the Agreement. Respect~'ull~ submitted, ohn ~VI. i t enior Assistant City Attorney gage ~ s~laur ~ocumen#s~miscellanenus~~?1~619~7 atm ais.~oc s:lour document~Iresolutions1471~G1947 atmos ene~gy.duc RESOLUTION NO. RESOLUTION OF THE CITY OF DENTON, TEAS AUTHORI~INC~ THE DENIAL OF ATMOS ENERGY CORPORATION' MID-TES DIVISION'S ~"ATMOS MID-TE"} CAS RELIABILYT' Il~FRASTRUCTURE PROGRAM AD~CTSTENTS FOR CALENDAR FEAR ~O~; AUTHOR.I~INO PARTICIPATION IN A COALITION OF CITIES KNOwN AS ATOS TEAS MUNICIl'ALITIES ~"ATM"}; AUTHORI~IN THE Hn~.iNO OF LAWYERS AND RATE EXPERTS; AUTHORI~INO THE CITY' PARTICIPATION TO THE FULL EXTENT PERM'TED BY LAS ''AT THE R.~ILR~AD ~~MII~N ~F TEAS IN CUD DOCKET NOS. J 7~-1 AND ~7i~, REQtTI~Il~ THE RE~REENT OF M~LINICIPAL RATE CASE EENSES; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETING ACT; MAI~INC~ OTHER FIl~DINS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, an or about 1VIay 3I, 2~0~~ At~nos Energy Corporation's Mid-Tex Divisian ~"Atr~os Energy"} filed an application with the City to increase gas rates far its Gas Reliability Infrastructure Program ~"DRIP"} for calendar year 20~~ pursuant to Section 104.1 of the Gas Utility Regulatory Act ~"Act"}; and wHERE.AS, Atmos Pipeline-Texas f iced at the railroad Conlmissian for a ~~IP adjustment for calendar year ~~~; and WHEREAS, due to the raten~al~ing carnplexity of Section 1~4.~1 of the Act it is therefore necessary to engage the expertise of lawyers and consultants who specialise in raterrial~in proceedings before regulatory authorities to assist the City as provided far in Section 1 ~,02~ of the .Act; and WHEREAS, given the complexity and the need to carefully review the proposed CrRIP adjustment it is necessary to deny the GRIP adjustment in order to allow the City's rate experts sufficient time to detern~i.ne the merits of Atmos Energy's proposed GRE' adjustment; and WHEREAS, in order to rnaxine the efficient use of resources and expertise in reviewing, analysing and investigating Atrnos Energy's request for a GRIP adjustment it makes sense to coordinate the City's efforts with a coalition of similarly situated rriunicipalities; and WHEREAS, a. coalition of municipalities, knan a~s the Atn~os Texas ll~unlc~pallt~es ~"ATM"~ has been active ~n gas utlllty rate~naklr~ proceedings; and WHEREAS, the City will join with other cities participating i ATM in a steering co~n~nittee in order to coordinate the hiring and direction of legal counsel and consultants worl~irlg on behalf of ATM and the City; NOS, THEREFORE, s.lo~d~cumentslteso~utions1071~~1~~7 atmos en~rgy.~~c THE CITE' C~UNCIII ~~ THE CITY OF DENTIN, TEAS HERESY RESOLVES: SECTION ~. That the statements set out in the preamble to this resolut~an are hereby in ~~~ thing approved and adopted. SECTION ~. The City hereby denies Atn~os Mid-Tea's request for GRIP adjustments for fiscal year ~~~~, in all respects. SECTION 3. The City ~s author~~ed to ~ oin with other cities in a coalition of e~t~e known as the Atrnas Texas Municipalities ~"ATM"} with the understanding that the steering committee of ATM will provide direction and guidance to the lawyers who are representing said ,. cities, SECTi~N 4, The City employs Jim Boyle, and Alfred Herrera. a special counsel to represent the City with regard to the proposed RTP adjustments of Atmos Energy before local and state regulatory authorities and any court of law and authorises special counsel to employ such rate experts as are recommended by the ATM Steering Con7mittee. ECT~ON . The City authorises special counsel to intervene on behalf of the City and other members of ATM before the Railroad Commission of Texas in OUD Dacl~et Nos, X74 and 97~d. SECTION ~. The City, 1n coordrnation with the Steering Coirimittee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to Atmos Energy for reimbursement. SECTION 7. Atn~os Energy shall reimburse the City, through the designated representative city of the steering Comrtnittee, for the reasonable casts of attorneys and consultants and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. SECTION , The City Secretary shall notify Atrnas Energy of this resolution by sending a copy of same to Ms. Earbara Myers, Atmos Energy Corporation, 5~2~ L~J Freeway, Suite 154, Dallas, Texas 7240 and ATM shall be notified by sending a copy of this resolution to Mr. Jinn Finley, City Attorney far the City of Longview by fax to ~~03~ X39-5~~. SECTION ~. The meeting at which this resolution was approved was in all things conducted 1n strict compliance with the Texas open Meetings act, Texas overr~nent Cade, Chapter J J ~ . SECTION 10. This resolution shall become effective from anal aver its passage. Page ~ s:lour ~ocu~entslreso~uti~ns1~710619~7 atmos energy.~~c P~~RY R. cN~rL~, MAYOR i TLTi .~~NNIF~R A.~TER, ITS ECRETA~ ~Y: APFR~VEI~ A T~ LEC~~AL FARM: ~~]IN ~VI. SN~D~R, CITY ATT~RN~Y BY: Page 3 AI~E~DA IN~'~~NIATI~~ SHEET AC~BNDA DATE: June 1, ~~a7 DEPARTMENT: Legal Department {. MIDMIAM; John . Knight, senior Assistant pity ,tton~ey UBJET; consider an ordinance authorizing the pity Manager to execute a Oil and has Lease with Endeavor Energy for 19.45 ages of dross Timbers Farb situated in the N. Britton u~vey, Abstract No. 51, in the pity of Denton, Denton County, Texas, and related documents; ~` provlding severab111ty and an effective date. BAK~RI~UI~~]: On August I, ~~OG the city Council approved °criteria far the av~ard of leases far ail, gas or other mineral interests lands awned by the City of Denton. ,Ubsequently the C1ty sollc~ted beds for the av~ard of an oil and gas lease on approximately 7D.d1 acres of land situated within Cross Timbers ~ar1~. Only one bid was received. It was submitted by my David Ratner on behalf of endeavor Energy Resources, L,P. and eras far approximately 19.45 acres of the property in question. Mr. Scott Hickey represented the 1llterests of the 1ty lil negotlatlons ~v1th Mr, Cotner. O~TII~N: 1. Pass the ordinance to authorize execution of the oil and gas lease. Z. Decline to pass the ordinance to authorize execution of the oil and gas lease. FIAL Il~~"DRATI~N: Compensation related to this use ~vil1 be set in the Lease agrener~t from the bid offering. It is reasonable to expect that financial consideration for leasing of land and raya~ties on production of gas and oil i11 benefit the City of Dentani Respectfully submitted, ohn M. Knigh enivr Assistant City Attorney s:lour ~QC~III]~I]tS~I171SC~~~~t]~Di15~O~~15 CFQSS ~1~1~3~1'S-endeavor energy.~ac AI~E~DA IN~'~~NIATI~~ SHEET AC~BNDA DATE: June 1, ~~a7 DEPARTMENT: Legal Department {. MIDMIAM; John . Knight, senior Assistant pity ,tton~ey UBJET; consider an ordinance authorizing the pity Manager to execute a Oil and has Lease with Endeavor Energy for 19.45 ages of dross Timbers Farb situated in the N. Britton u~vey, Abstract No. 51, in the pity of Denton, Denton County, Texas, and related documents; ~` provlding severab111ty and an effective date. BAK~RI~UI~~]: On August I, ~~OG the city Council approved °criteria far the av~ard of leases far ail, gas or other mineral interests lands awned by the City of Denton. ,Ubsequently the C1ty sollc~ted beds for the av~ard of an oil and gas lease on approximately 7D.d1 acres of land situated within Cross Timbers ~ar1~. Only one bid was received. It was submitted by my David Ratner on behalf of endeavor Energy Resources, L,P. and eras far approximately 19.45 acres of the property in question. Mr. Scott Hickey represented the 1llterests of the 1ty lil negotlatlons ~v1th Mr, Cotner. O~TII~N: 1. Pass the ordinance to authorize execution of the oil and gas lease. Z. Decline to pass the ordinance to authorize execution of the oil and gas lease. FIAL Il~~"DRATI~N: Compensation related to this use ~vil1 be set in the Lease agrener~t from the bid offering. It is reasonable to expect that financial consideration for leasing of land and raya~ties on production of gas and oil i11 benefit the City of Dentani Respectfully submitted, ohn M. Knigh enivr Assistant City Attorney s:lour ~QC~III]~I]tS~I171SC~~~~t]~Di15~O~~15 CFQSS ~1~1~3~1'S-endeavor energy.~ac :lour document~lardi~ces1U71cross ~tn~ersdeavor er~ergy.dac ~RDINANE NQ. AN ORDINANCE AUTH~RI~ING THE CITY MANAGER T~ EEUTE ~. GIL AND GAS LEASE wITH ENDEAVOR ENERGY FDR ~ 9.4 ACRES Q~' CROSS TnVIEER PARi~ SITUATED IN THE N. BRITTDN UREY, ABSTRACT NO, 51, IN THE CITY OF DENTON, DENTON BOUNTY, TEAS, AND RELATED DDUMENT; PRD~IIDING SE~ERABILITY AND AN EFFETI~E DATE. WHEREAS, the pity council of the pity of Denton has heretofore determined that it is advisable to lease, for oil ar~d gas purposes, certain real property located at brass Tubers Par1~, Denton, Texas; and WHEREAS, the 1 desires to autborl~e the arty Manager to execute the lease wry Endeavor Energy for an ail and gas leased NDw, THEREFORE, THE OUNIL OF THE CITY OF DENTON I~EREBY ORDAINS: SECTION 1, Incarparatian ofPrea.ble. The above and foregoing preamble is incorporated into the body of this Ordnance as ~f capled herein m its entirety. SECTION ~. The pity 1Vlanager ar his designee is hereby authorised to execute an ail and gas lease agreement between the pity afDentan and Endea~var Energy, and related documents, which are attached hereto and incorporated herein by reference. SECTION ~. If any section, article, paragraph, sentence, clause, phrase or word i~. this Ordinance ar application thereafta any person or circumstance is held Invalid or unconstitutional by a Court afcompetent jurisdiction, such balding shall not affect the validity of the remaining pardons of this Ordinance, and the City council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain rn fja11 force .~ effect. SECTION 4. This ordinance sha11 become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of ~~07. PERRY R. McNEILL, MAYOR A.T'~E 1. J~I~NIF'E~ AI1T~~, CITY ~~RETY BY: APP~VED A T~ L~~AL FARM. EDP 1Vi. NYI~EI~, CITY ~TT~RNEY BY: gage 2 NTIE DF ~NFIDENTIALITY RIGHT: IF YOU ARE A NATURAL PERDN, YOU SAY RE~vE ~~ THE ANY DR ALL ~F THE FDLL~wIN INF~- IM.ATION FI~D~ THIS INTRUENT BEFDR.E IT ~ FILED F~~. ~E~RD IN THE PUBLIC REDD: YDUR DIAL SECURITY NUIVIBER ~~ YOUR DRIVER.' LICENSE N~UI~IBE. ~L A1~D A LSE This Dil and has Lca.se this "Lease'} is made on 2007 between T F ENTOI~, xis ~herea~cr called "Lessor," whether one or n~ore~, whose address ~s ~1~ ~, Menney t.~ Demon, ~`e~as 7b~o1 and LNDEAVO~ ERGY lt~~~u~t~, L.P., whose address is X10 ~. a~enfeld quite ~OO~ N~aidiand, Teas 7970 {hereaer cared "Lessee"~. 1. rangy. In consideration of one Thousand and no110os dollars ~~ 1 ~a~.0a} per n~unera~l acre and other goad and valuable canslderat~on in hand paid, Lessor grants and leases exclusively unto Lessee the following described land {the {`Land"~ in Denton County, Texas, far the sole purpose of exPlo~.ng under, drilling under, and to produce, save, treat, process, stare, and transport oil and gas and other products manufactured from oll and gas produced firon~ the Land; 19.4 Acres as more particularly described an Exhibit "A" attached hereto and made paxt hereof. ~. Primary '~errt~. This Lease is far a term of one 1 ear from this date called "Primary Tartu"~ and long therea~er as oil or gas is produced fira~n the Land in Paying quantities. 3. surface Use Pro~ibitedlProtection o~ Pu~Iic Lands. There is hereby excepted and. reserved to LED the full use of the land covered hereby and alI rights with respect to the surface and subsurface thereof far any and ail purposes and all miner- als except those expressly leased herein and only to the extent herein leased to LESSEE. LEER reserves and excepts franc this Lease all of the surface of the land described in Paragraph 1, and LEEE agrees that it will not conduct drilling operations ar any other operations or activities of any nature an the surface of such Land. Lessee its agents, con- tractors, heirs, successors or assigns shah have na rights of ingress or egress upon the sur- face of the Land and herein waives any rights to any implied easement to use the surface of the Land. Unless this Lease specifically provides for the conduct of seismic opera- tions, Lessee is prohibited from using the surface of the Land far any Purpose, but Lessee may engage in directional ar horizontal drilling activities beneath the Land that are can- ducted on the surface of other Iands. Any directional or horizontal drilling must penetrate the Land sufficiently below the surface s to not interfere with the present or future use of the surface of the Land for public park use, and in no event may the directio~.a~ or hori- zontal drilling penetrate the Land less than 2a~ feet below the surface. A directional or horizontal well drilled under this provision shall be considered to be located an the Land. Fagg 10~ 13- ~~. Aim ~~s LEASE ~~ity of Dento~l~~oss Timbers Perk Lease)[swh;0~?0?] s:l~~r docents~COntracts1~71cr~ss timbers park lease 11 jnn0? ~~nal).doc Lessee's surface locations for wells affecting this Lease shall not enter the surface within 50~ feet of the Land. 4. ll~i~er~l~ hovered, This Lease corers only oil and gas. The term "ail and gas" .cans oily gas, and other liquid and gaseous hydrocarbons produced through a well bore. Ra~lty. {a} As royalties, Lessee agrees; { 1 } To deliver free of cast to Lessor at the wells or to the credit of Lessor at the pipeline to which the wells may be connected, twenty five percent, °I~ {the "Royalty Percentage"} of all oil and other liquid hydrocarbons produced and saved from the Land.l~t Lessor's option, which may be exercised firam time to tune, Lessee shall pay to Lessor the sane part of the n~arl~et value at the well of ail and other liquid hydrocarbons of like grade and gravity prevailing on the day the ail and other hydrocar- bons are run from the Lease in the general area in which the Land is located. (2) To pay to Lessor: {i} ~n gas produced from the Land and sold by Lessee or used an ar off the Land and to which the fallowing subparagraphs {ii} and {iii} do not apply, the Loyalty Percentage of the market value at the paint of sale, use, or other disposition. {ii} ~n gas produced from the Land that is processed in a processing plant in which Lessee or an affiliate of Lessee has a direct or indirect interest, the higher of the Royalty Percentage of the market value of the gas at the inlet to the processing plant, or the Royalty Percentage of the ~.arket value of all processed liquids saved from the gas at the plant plus the Loyalty Percentage of the mar- ket value of all residue gas at the point of safe, use, or other disposition. {iii} ~n gas produced from the Land that is processed in facilities other than a processing plank in which Lessee or an affiliate of Les see has a direct or indirect interest, the Royalty Percentage of the rnaret value at the plant of all processed liquids credited to the account of Lessee and attributable to the gas plus the Royalty Percentage of the market value of all residue gas at the point of sale, use, or other dispos~t1on. {b} If gas produced from the Land is Bald by Lessee pursuant to an arms-length contract with a purchaser that is not an affiliate of Lessee, and far a term no longer than that which i usual and customary in the industry at the time the contract i made, then the market value of the gas Bald pursuant to the contract shall be the total proceeds received by Lessee in the sale, subject to the provisions of paragraph ~{c} be- low. Page 2 of 1 ~- ~~, Axe G Ls~ ~~~ of Dento~ICross Timbers Park Lease)[s~v~;~2~7~7J s.lor~ docaments~COntr~cts1071cross limbers park lease ~ 1 j~n~7 ~~}.d~c ~c~ The market value of gas will be determined at the specified loca- tion byreference to the gross heating value {measured 1n British thermal units} and qual~- ty of the gas. The market value used in the calculation of ail and gas royalty will never be less than the total proceeds received by Lessee in connection with the sale, use, or other disposition the oil or gas produced ar sold. far purposes of this paragraph,rf Lessee rece- ive frarn a purchaser of ail ar gas any reimbursement far all ar any part of severance ar production taxes, ar if Lessee realizes proceeds of production after deduction far any ex- pense of production, gathering, dehydration, separation, compression, transportation, treatment, processing, storage, or marketing, then the rein~bursen~ent or the deductions will be added to the total proceeds received by Lessee. ~ayalty will be payable on ail and gas produced firon~ the Land and consumed by Lessee on the Land for compression, de- hydration, fuel, or other use. {d} Lessor's royalty will never bear, either directly ar indirectly, any part of the costs ar expenses of production, separation, gathering, dehydration, cornpres- sion, transportation, trucking, processing, treatment, storage, ar marke~.ng of the ail or gas pradueed frarrr the Land or any part of the costs of construction, operation, or depre- eiation of any plant or other facilities ar equipment used in the handling of oil or gas on the gaoled lands andlar prior to the paint of sale. It is understood and. agreed between Lessor and Lessee that this clause shall not be considered surplusage a per the principles of the e~~~ag~e resources v. atior~s Bask, 9~4 .w.Zd G 19 {Tex. 1997 ease and shall be given its full meaning and effect. Notwithstanding anything herein contained to the contrary, Lessor and Lessee agree that Lessor's royalty an gas {to the extent Lessor has not elected to take his ar her royalty gas in kind} shall bear its proportionate share of post~productian casts associated with such gas to the extent such production costs are in- curred at a point ar paints not an the Tease premises. In the event Lessee andlor its affili- ates provide off-lease past-production services the fee att~.butable to Lessor's royalty gas shall ~e the lesser af~ ~ }the lowest rates charged third parties by Lessee andlor its affili- ates far similar services ar 2~ the lowest rate that could otherwise be ne atiated under an g arms length agreement with bona-fide third parties far the same services, {e} Lessor shall be paid the ~ayalty percentage of all payments and other benefits made under any oil or gas sales contract or other arrangement, including take-or~pay payments and payments received in settlement of disputes; provided that if Lessor receives stake-ar-pa.Y panent or smilax payment far gas that has not been pra~ duced, and. if the gas is subsequently produced, Lessor will only receive its Royalty Per- centage of any payments made for make-up gas taken pursuant to the take ar-pay provi- sion ar similar provision. ~ Lessee must disburse ar cause to be disbursed to Lessor its royalty on production from a particular well not later than a days after completion of the well, in the ease of an oil well, or after the pipeline connection, in the ease of a gas well, The- reafter, Lessee must disburse ar cause to be disbursed to Lessor its royalty an production by the last day of the second month after the month of production, If not paid when due, Lessor's royalty will bear interest at the maximum lawful rate frorri due date until paid, which arnaant Lessee agrees to pay. Acceptance by Lessor of royalties that are past due Page 3 ~f 1 - ~~, Axe G ~s~ {City o~DentonlCross Timbers Park Lease}[swh;~22707~ s:lour dacue~tsleautrac#s1~71eross timbers park lease 1 ~~un~7 (final}.doc will not act as a wai~rer or estoppel of its right to receive interest due thereon unless Les- sor expressly so provides in writing signed by Lessor. The royalty payment obligations under this Lease shall not be affected by any division order ar the provisions of the ec- tian 91.40 of the Texas Natural Resources fade or any similar statute. ~g~ Upon written request by Lessor, Lessee shall tender a full account- ing as to the payment of royalty to Lessor within 3~ days of said request. The format shall be in the form requested by Lessor. However, if no format is specified Lessee shall respond in a format that provides Lessor v~itlh an accurate depiction of the amount of pra- ductian from the well~s~ affecting this Lease for the time period specified and the alloca- tions ofpayments tothe Lessor along with deductions, if any, ~h} As used in this Lease, "affiliate" means ~i~ a corporation, point ~en- ture, partnership, or other entity that owns mare than ten percent of the outstanding vot- ing interest of Lessee cr in which Lessee owns mare than ten percent of the outstanding voting interest; ar iii} a corporation, point venture, partnership, or other entity in which, together with Lessee, mare than ten percent of the outstanding voting interests of both Lessee and the other corporation, point venture, partnership, or other entity is owned or controlled by the same persons ar group of persons. ~i} The receipt by Lessee from a purchaser or a pipeline company of proceeds of production far distribution to Lessor will not result in Lessee acquiring legal or equitable title to those proceeds, but Lessee vll at all time hold the proceeds in trust for the benefit of Lessor, Notthstanding the insolvency, bankruptcy, or other business failure of a purchaser of production firvnh the Land or plpel~ne company transporting pro- ductlan ~ron~ the Land, Lessee mill remain liable for payment to Lessor for, and agrees to pay Lessor all royalties due Lessor together with interest if not timely paid. G. apt-Yn R~yty. While there is a. gas etl on this Lease capable of pra- ducmg gas m paying quantities, but gas is not being sold, Lessee shall pay or tender in advance an annual shut-in royalty of $2aa.a~ per acre leased herein from which gasrs not being Bald. The first payment of Butch sum shall be an or before the first clay of the calen- darmonth at the expiration of ninety ~~~ days from the date the Lease is not maintained b~ productlan, and thereafter subsequent payments may be made at annual intervals. While shut^in royalty payments are timely and properly paid, this Lease will be held as a producing Tease. The right of Lessee to .aintain this Lease , farce bypayment ofshut-in gas royalty is limited to the period of t~vo years that fallow the expiration of the Prim Term. The obligation of Lessee to pay shut-in royalty is a condition and not a covenant. The payment ar tender of royalty under this paragraph nhay be made by the check ofLes- seemailed or delivered to the parties entitled thereto on or before the due date, '7. Dri.~ii.~tg b~igati~n~IDelay R~~t. ~n or before 18~ ~a ~ from this date, Lessee agrees to canunence the actual drilling of a well on Land gaoled pursuant to para- graph 10 below with the Land and thereafter drill it with reasonable diligence and in a goad and womanlike manner to a depth sufficient to test the Barnett Shale Formation via horizontal drilling, While drilling the well, if Lessee encounters conditions that render Page 4 of 13- ~~L AND ~A~ ~E ~~it~ ofDe~tonlCrass ~'imbers Park Lease)[swh;0~~?~?] s:l~~.r doc-imerYtsl~ontractsl~'71~cross timers dark lease 11 jun~7 {f~al~.doc further drilling impractical, Lessee nay commence a substitute well within ~a da s after . y abandoning the wells A substitute we11 that 1s drilled to the depth and m the manner re~ quired far the first we11 will satisfy this drilling obligation. ff Lessee fails tel to com- • F mence the well, or ~f having commenced the well fads to drill ~t to the depth and 1n the manner required, this Lease will terminate. Lessee nay delay the commencement of said we11 to the end of the Primary Term by paying to Lessor ~ ane time delay rental in the amount of $~aa.aa before the end of the first 1 ~a days of this lease, axd Bela rental t . shall be paid directly to Lessor at the address listed above. S. o~tiu,uous Devel~pm~nt. ~a~ lf, at the expiration of the Primary Terre, oil or gas is eat being produced from the Land, but Lessee has co~nrnenced the drilling of a well on lands that will farm, a proratian unit that will Include the Land, the Lease will eat terminate but will remain in effect far so fang thereafter as aperations are carried out with due diligence with no cessation of mare than ~0 days, and if the aperatians result in the production of ail ar gas, the Lease shall remain in farce as otherwise provided herein, Far the purposes of this Lease, the term "operations" means operations far any of the following: drillin , • ,. g testing, completing, rewark~ng, recarnplet~ng, deepening, plugging back, ar reran of a well in search of ar in the endeavor to obtain production. of ail or gas. fib} After the Primary Terre, if this Lease is maintained by production or otherwise, it wi11 remain in force as to all acreage and depths as fang as there is na lapse of more than 18a days between the completion of one well and the commencement of the actual drilling of another well, The comn~ence.ent of actual drilling means the penetration of the surface with a drilling rig capable of drilling tv the anticipated total depth of the well. After a well is camtnenced, drilling operations must continue with dili- gence and in a goad and workmanlike manner in a good faith effort to reach the antic ipated total depth A well will be deemed to have been can~pleted on the date of the re- lease of the drilling rig from the drillsite. The permitted tine between wells shall be cu- rnulattve sa that 1f a well is commenced prior to the date 1t is required to be commenced, the number of days prior to the date an which the well should have been commenced shall be added to the time permitted far the next well. ~c} If at any time the maximum time far the commencement of the ac- tu~.l drilling of a well expires without the commencement of a we11, or upon the expira- tion of the Primary Term if the Lease is eat maintained by continuous drilling, this Lease will terminate except as to a portion of the Land contained in any proration unit with a well that is then producing in paying quantities ar deemed to be producing in paying quantities by virtue of payment of shut-in royalties. The Lease wi11 then terminate a~s to all depths below the stratigraphic equivalent of the base of the deepest producing forma- tion onthe said proration unit, ff production from the said proration unit ceases from an i . cause, this Lease will tern~nte as to the part~on of the Land contained therein unless Lessee commences operations for drilling or reworking on the well tram which produc- tion ceased or on a new well on other lands that would include the Land in the proration unit wig 9a days after the cessation of production, in which case the Lease as to that Page 5 of 1 ~- Orr. Axe Gns LE {pity of De~ntonlCros~ ~'im6ers Park lease}~swh;~~~?07] s:lonr docur~entslr~#racts1~71c~oss tim~e~s park tease 11jun0? (final).doc tract will continue in farce as long as the operations are prosecuted with na cessation of mare than GO consecutive days. ~f the said operations result in production, then this Lease shall remain in farce so long thereafter a there 1s Production frana the tract. ~d} As used in this Lease, the term "horizontal well' means a well that meets the definition of a "horizontal drainhole well" under Statewide Rule 8~ of the Rail rand Commission of Texas, and a "vertical we11" rs a well that is not a horizontal well. A proration unit for a vertical well producing from the Barnett Shale formation naay oat ex~ teed 4a acres. ~f field rules are established later that permit obtaining a drilling permit with less acreage, a proration unit for a vertical well nay not exceed the nalnimun~ size permitted. A proration unit for a horizontal well naay include the mrniurrt acreage speci- fied above far a vertical well plus the additional acreage listed the tables in Rule ~~ {far fields with a Density Rule of 4a Acres ar Less} and. roust amply with the require- ments of Rule 8~ for n~nimu permitted well density, and if the welt is producing from the Barnett shale forrn.ation, the acreage of a Proration unit slaall be assi ed as if well density for vertical wells is 4a acres or less. Each. proration unit for a vertical well must be as nearly the form of a square as is Practical with the we11 in the center of the square and w1 the sides of each square runnhag m the cardinal directions. Each proration unit far a horizontal we11 must be in the form of a rectangle with the horizontal drainhole be- ing a~s nearly as practical along the center line of the long d~naension of the rectangle. . Fooling. Lessor and Lessee recognize that it may in the interest of each Party far portions of the Land to be gaoled with adjacent land to create pooled waits far vertical ar horizontal drilling. A proposed unit will only become effective upon Lessor's consent, which consent will not be unreasonably withheld, if Lessee desires to create a pooled unit, Lessee shall submit a written proposal to Lessor, aril a failure by Lessor to abject to the Proposal within 3a days after native will constitute approval ofthe proposal. Lessor shall oat unreasonably withhold its approval of the paaled unit. 1Vevertheless, Lessee shall goal all of the Lessor's Land into one gaoled unit unless Lessor gives its written consent to do otherwise. Notwithstanding the foregoing, Lessor hereby agrees to pool the Land pursuant to a gas unit designation agreement, identical in form or substan- tially similar to the one attached hereto and made a part hereof as Exhibit "B" 1 a, econdar~ ~covery. Lessee will oat implement any represurin, pres- sure maintenance, recycling, ar secondary recovery operations without the prior written consent ofLessor. ~ 1. urf~c~ T~~e. Unless this Lease specifically Provides far the conduct of seismic operations, Lessee is prohibited from using the surface of the Land far any pur~ pose, but Lessee may engage ~ directional drilling activities beneath the Land that are conducted on the surface of other land. Any directional drilling must penetrate the Land sufficiently below the surface as to not interfere with the present ar future use of the sur~ face of the Land for comn~ereiai ar residential use, anal in no event m.ay the directional Page ~ of 13 * 0~ A~ Gas L~ ~Ci~y afDen~anlxuss Timbers Park Lease}~sv~h;02~7~7] s:lour ~ocumentslcnntra,ctsl~7~cross timbers park 1e~e 11jnnD? (al~.doc drilling penetrate the Land less than X00 feet below the surface. A directional well drilled under this provision shall be considered to be located on the Land. ~~. A$~ig~men. Lessor is granting rights to Lessee that Lessor would not grant to others. Therefore, prior written approval of Lessor is required for an assi ent . Y ~ ar sublease of this Lease, not to be unreasonably withheld. All asi ents and subleases • r must require the assignee or sublessee to assume all of Lessee's obligations under this Lease, but Lessee will remain liable far its obligations regardless of an assi ent or y ~ sublease by it. No assignrrtent or sublease will be effective until a cerd~ied co of the Py recorded document is furnished to Lessor. 1 ~. farce ll~ajeare. Should Lessee be prevented by reason of Farce a'eure . ~ from con~ply~ng with any express or nnplled covenant of this Lease other than a re- qu~ren~ent to pay money}, firorn conducting drilling or reworl~in operations an the Land, ar from producing oil or gas, then while so prevented, that covenant will be sus ended• . ~ Lessee will not be liable for damages for failure to comply therewith; this Lease will be extended so Zang as Lessee is prevented from conducting drilling ar ~rewarin a erations on or g p frorr~ producing oil ar gas from the Land; anal the time while Lessee is so reverted • ~ i will not be counted against Lessee. "Farce ll~a~eure~' means any Act of Cod, an federal Y ar state law, or any rule or regulation of governmental authority, or other similar cause bother than ~neial reasons}. This paragraph is, however, in all thin s sub' ect to the li- . ~ ~ g ~ n~~tat~ons of time during which this Lease may be continued in force by the ent of p~ shut-~n gas royalties. 1 ~. ~~ warr~e~. Lessor m.al~es no warranty of any find with res ect to title p to the Land. ~y acceptance of this Lease, Lessee acl~nowledges that it has been `ven full opportun~.ty to investigate and has conducted sufficient investigation to satisfy itself as to the title to the Land, and Lessee assumes all rile of title failures. If Lessor awns an interest in the Land less than the entire fee simple estate, then the ro alties a able he- y pY reunder witl be reduced proportionately. Lessee, at its option, may dischar a an tax . g y mortgage, or other 11en on the Land, and ~n the event Lessee does so, Lessee will have the option of applying the royalties accruing to Lessor toward payment of it. I5. ~uri~g Default. Should Lessee at any time fail to comply with its obli- gations hereunder regarding construction, in~ntenance, or repair within 3~ da s after . ~' written na~ice from Lessor, Lessor will have the right to da or have done whatever is ne- cessary to fulfil the obligations to its satisfaction, and Lessee shall be liable to Lessor for the reasonable and necessary expenses thus incurred by Lessor, to be aid within ten da s p Y after Lessor furnishes to Lessee an itemized written statement of the ex eases. p 1 ~, o~ce~. Ali natives wi11 be deemed given and reports wi11 be deemed de- livered if sent by certified letter, return recei t re nested ro erI addressed an - p q a p p y d depo sited in the united States Postal Service, postage prepaid, to Lessor anal Lessee at the ad- dresses shown for each party. Any party may designate a new address b ro er notice to yP p the other party or parrt~es. Page 7 ~f ~ 3- ~~, Arm G L~s~ City of Den~o~lCrass Timbers Park ~ease)~swh;0227~7] s:lour do~umentslcantl~7~cross timbers ~ lease 1 ~ jun~7 ~fma~}.doe 17. ~t~o~ey'~ ~'e~s. In the event that Lessor is required to en~play ie al .. ~ counsel far the enforcement of any pro~vfsion of this Lease and preaa~ls, Lessor wrll be entitled to recover from Lessee reasona~hle attorney's fees and expenses incurred b Les y sar, 1 S. In~uranc~ Req~ment~. Lessee shah provide or cause to be provided the insurance described below far each well drilled under the terms of this Lease, such insurance to continue until the v~ell is abandoned and the site restored. Such insurance shall provide that Lessor shah be a ca-insured, without cast, and that said insurance can not he canceled ar teninated without thirty ~3a} days prior notice to Lessor and ten X10} days notice to Lessor for nonpayment of pren~iun~s, a, C~en~raY l~~quiremen. YndeuU~if~catian d ~~pre~~ Neg~Ienc~ ~rn- vi~I~n~. LESSEE shall expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, ar now have or may have, yr assigns Ana . y have, or clam to have, against the LES ~~~, ~t agents, officers, servants, successors, a- signs, sponsors, volunteers, or employees, created by, or arising out of personal injuries, l~nown or unknown, and injuries to property, real or personal, ar in any way incidental to or in connection with the performance of the oil and gas drilling and production per- forme by the LESSEE under this lcase and the LESSEE shall fully defend, prated, in- demnify, and hold harmless the LESSOR, andlor its departments, agents, officers, ser- vants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any anti all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the LESSER, andlor its departments, agents, officers, ser~rants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by LESSEE, its agents, assigns, or any third parties on account af, aris- in out of, or in any way incidental to or in connection with the performance of the oiI and gas well drilling and production performed by the LESSEE under this lease and, the LESSEE agrees to indemnify and hold harmless the LESSER, and~or its depar(n~ents, andlar its officers, agents, servants employees, successors, assigns, sponsors, or volun- teers from any liabilities ar damages suffered as a result of claims, demands, costs, or judgments against the LESSER andlor, it's departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the LESSER occurring an the drill site or operation site in the course and scope of inspedin and permitting the gas wells INCLUDING, BST NAT LIMITED TD, CLAIMS AND DAMAGES ARI- IN IN wHQLE DR IN PART ER~M THE NEGf,I~ENCE DF TIDE LESSGR DC- CURRINC~ GN TITE DRILL SITE GR GPERATIGN SITE IN THE CG~JRSE AND SCG~E GF YTS DCJTIES UNDER THIS LEASE.. IT IS UNDERSTOGD AND ACrREED T~IAT THE IlvDEMNITY PROVIDED ~~~ YN THIS ECTrGN IS AN nV- DENn~ITY EXTENDED BY THE LESSEE TG INDEMNIFY AND PRGTECT THE LESGR ANDIGR ITS DEPAI.VIENTS, AGENTS, OFFICERS, SERVANTS, GR. EIVI- FIJGYEES ~`RGM THE CGNSEUENCES OF THE NEGLIGENCE GF THE CITY DF DENTDN, TEAS ANDIGR ITS DEPARTIVIENT, AGENTS, GFFICERS, SER- ~TANT, GR EM~.'LDYEES, WHETHER THAT NEGLIGENCE IS THE SGLE ~ Page S of ~ - Ud A~ Gas L~as~ (its of Dentanlross ~'it~~ers Park Lease}[sw;02~7Q?~ s:lo~r ~ocamentslconc#~1~"~Icrass umbers pa~C lease ~ ljun~7 ~fma~}.hoc C~NTIBUT~N CAUSE ~~ THE R~ULTANTANT INJURY DEATH ANDI~ a , DAAL, BUT NAT IN THE EVENT ~~ CROSS N~CxLIENCE ANDI~~ ~LL- FUL ~iICDNDUCT, b. Ali policies shall be endorsed to read ,THIS pDL~CY SILL NAT BE CANCELLED ~~ NON-RENEIED ~VITH~UT a DAYS ADVANCED WRITTEN NOTICE TO THB LESDI~ AND THL CITY EXCEPT WHEN THIS POLICE IS BE- lN0 CANCELLED ~~R NONPAYMENT ~~ PEMIU WHICH CASE 1 a DAYS ADVANCE 'ROTTEN N~T~CE I ~.EUIRED", c. Liability policies shall be written by carriers licensed to do business Ted and 1th Companies 1th A; VI~~ or better rating in accordance v~ith the current Best Ivey Rating wide. d. Liability policies shall name as '~Additiona~ insured" the ci and its of~i- 4 cials, agents, employees, and volunteers, e. Certificates of insurance must be presented to the City evidencin all co- verages and endorsements re~u~ixed by Section 35.~~.5 ofthe Denton Devely meat Code as na~v ~vritte~. or as further amended, and the acceptance of a certificate Without the re- quixed limits ar~dlor caveraes shall nat be deemed waiver of these re uirerrzents, ~. Clainis made policies mill not be accepted except far excess licies or ~ulless otherwise pro.ded by this Article. l~equ~r~d Durance a~er~e~. ~. Con~nercra~ General Lrablllt~ Insurance. Coverage should be a n~inin~um Combined Single Limit of $1 ~aaa,aa0 per occurrence for Bodil ln~ury and Property Damage. This coverage must include remises, o , ~ ~ erations, blowout or explosion, products, conipleted operations, blanket contractual liability, underground property damage, broad farm propert d .. ~ aniage, independent contractors protective liability and personal injury. 2. Environmental Impairment far Seepage and Pollution} shall be ei- ther hicluded in the coverage ar Britten a separate coverage. Such cover- age shall not exclude damage to the lease site. ~f Envixoninental ~my'~~Jiair, ~ . ; 4 i .ent for Seepage and Pollution} Coverage 15 v~ritten on a "cla~nis made" basis, the policy must provide that any retroactive date a livable recedes pP ~ the effective date of the issuance of the permit. Coverage shall a l to pp y sudden and nan~sudden pollution conditions resulting Pram the esa a or . ~ release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, li aids or gases, waste n'~at~rial or other 1rr~tants, Cantanlinants or pollutants, Page ~ of 13- 0~, Aim ~~s L~s~ {pity ofDen~o~lross ~"imbers Park Lease}~swh;~~~707] s:lo~x docun~~entsl~o~tracts1~71cross timbers park lean l 1j~n~T (final}.dac ~. ~uto>~no~ile Liability insurance. ~Vimimutn orr~bined Single Lim it of 5~0,0~0 per accurrence far Bodily Yn~ury and Prope Dania e. . Y Such coverage shall include owned, nan-owned, and hired vehicles. 4, ~ porker's ampensatian insurance, ~n addition to the irumunl statutory requirements, ca~rerage shall include Err~player~s Liability iim- its of at least ~ aa,aa0 for each accident, 1 aa,afl0 far each em Io ee and ~ ~ i r . a 5aa,~aa policy l~m~t for occupational disease, anal the insurer a ees to • ~ . wave rights of subrogation aga~ast the city, its af~cials~ agents, en~- ployees, and volunteers for any work performed far the ci h the LES~ y SEE. 5. Excess {or ~Jn~brella} Liability Insurance. Minimum limit of ~ ~,~~~,aa~ covering in excess of the preceding insurance olicies. p ~, antrol of e11 Insurance. a. N~Cinin~,um limit of ,~aa,~aa per occurrence, b. Policy shall saver the fast of cor~tralling a well that is out of control, edr-illi~g or Restoration expenses, Seepage and Pollution Damage, Damage to Property in the LES SEE's Caxe, custody, and on- trol with a sub-limit of Saa,aa~ nay be added. 19. Dispute It~sa~u~ion. In the event of a dispute under this Lease, the artier P agree to aite.pt to resolve the dispute through goad faith rnedlation~ to beheld i~ Denton Jaunty, Texas. ~a, ~C~II1~S ~i0~18. {a} ~ the event this Lease expires for any reason as to all or an art ofthe L Y P and, Lessee shall, wi#hin ~a days thereaer, furnish Lessor with a written, record- ablerelease covering all of the Land or that portion of the Land to be released. {b} Nothing ~n this Lease negates the usual rn~pl~ed covenants un osed upon Lessee. {c} Lessee wzll conduct all operations hereunder in compliance with the rules o the railroadomission of Teas and federal and state environmental laws and regulations. Lessee will give Lessor t Ieast ten days rior native in writin before .. p g conducting drrll~ng, recomletion, ar reworing operations under the Land, U on re nest b Le ~ ~ P ~ y ssor~ Lessee shall f-urmsh to Lessor copes of ppltcat~ons to drill, Bail drilli~ re- . ~' parts, well tests, completion reports, plugging records, gas purchase contracts, and ra- p gage 11~ o~ ~ ~- QII. A~ ~ ~~ City o~Dento~~ros~ T~rn~be~s Paxk Leased{w~;02271~7] s:lour doc~men~slco~trac~1~71cross tit~~ers dark lease ~ 1 jmY~'T [dal}.dos duction reports. Lessor has the right, persanaiiy or by re resentative at Lessor's risk of ~ ~ , access to the derrick Haar to observe a~i operations on all wells drilled an the Land. Les- sor will have the right to inspect and tape samples of alI cores and cut~n s and witness . i the taking of ail Iogs and dr~lli stem tests, and Lessee agrees to furnish Lessor with co ies of ail to s an ~ g surveys taken promptly after taking them, Lessee will divul a to Lessor g correct information as requested by Lessor as to each wets, the roductian therefrarn and . P such technical ~nfarmat~on as Lessee may acquire, Lessor has the ri t to be resent when wells or tanks axe gauged and production metered and has the ri ht to examine ail . g run tickets and to have full 1nforlnat~an as to praduct~vn and runs and to receive co ies of p ail run ticl~ets upon request. ~d} The term "productlQn" means production in paying quantities. No obligation of Lessee to pay money under this Lease will be excused or dela ed b reason Y y of Farce ajeure, Lessee's obligations to pay money under this Lease are to be r- formed in Benton bounty, Texas. Paragraph headings are used in this Lease for coriveni~ ence only and are not to be considered in the interpretation or construction of this Lease. The execution ar ratifcatian by Lessor of any division order, as contract or an other . ~ y document will not alter any pravis~on of this Lease unless the intent to do sa is ex ressl ,p; ~' stated in the dacun~ent. Lessee agrees to ash to Lessor a copy of each title a man or P report obtained by Lessee that cavern all ar any park of the Land to ether with a co of ~ f ~ ~Y each title curative document obtained by Lessee. ~e~ Lessor shall have the right to inspect alI records of Lessee relatin g to this Lease, operat~ans conducted on the Lease, the safe and marketin of roductian .g p from the Lease, and the payment of royait~es, rnciudin the ~ t to audit Lessee's books g insofar a they relate to the foregoing, . ~ ~ o~npliance with ~r~lling ~~di~~nee. Lessee shah, before dr~Iling and well which contains any of the Land ~ the well's drillin ut or Doled unit . g p amply with the 1ty of ~enton's ordinances to include, but not ii~nited to havin a final g approved plat. + fig} This Lease is binding upon and far the benefit of Lessor, Lessee and their respective heixs, personal representatives, successors, and assi s. ~ 1. N~emorandum of ~ca~e. As evidence of this Lease, Lessor and Lessee agree in its stead, to enter into and record in the Real Pia a Records of Denton Ca - p ~ un ty, Texas a IVIE~I-I~R~NDUM of CEASE. executed on the date f>rst written above. gage ~ ~ of ~~~ on Axn GAS ~E (~t~ of Deriton~~ross Timbers Park Lcas~}~sw~;U2~707~ s:lo~r doc~tme~t~lcontracts1~71cross timbers park lease l l~~n~7 final}.doe s-.f J.J ~1 La CITY 0~ 1]ENTO~I, T~xAS, ~ home r~ie n~un~e~ ail E~~E , CAMPBELL, CITY ANAEI~ ATTEST': ,~ENN~PER ALTERS, CITY SECRETARY ~Yi APPR~~~D AS T~ LEGAL ~`~R: ED SNYDER, CITY ATT~~NEY BY: STATE OF TEXAS § COUNTY OF DENTON § Before e. the under ed n ' n otary pub~~c, on this day personably appeared EIRE , CAp~EL~- e Ci N~anaer of the CITY ~~ ~E~T~1~, mho is known to nee to be the person whose name is subscribed to the foregoing instrument, and acl~no~rted ed to me that she exe ' g cured. that ~nstr~unent for the purposes and consideration therein a resell. - iv~en under nay hand and seal of office this day of ~~~~. Notary Aublrc, Mate of Texas ~~$~ 1 ~ Of i ~~ ~tL AND CrAS LEASC (City of ~ento~ICross Timbers Park lease}[swh;0~?Q7] s.laur ~~centslcnnt~ractsl~'?'lcross ti~nt~ers perk lean ~ ~,~~n47 ~f~al}.hoc LESSEE. EN~EA~~~ ~r~V I. lti1:rV~r~1~,~ L,P. BY: PRITEI] NAME: APA~I~Y: STATE OF TEXAS § COUNTY OF § before ~~, ,the u.nder~ ed na ub~ic an . 'Y P th1.s day peranal~y appeared e of Endeavor Energy Resources, L.P. ~vha i known to nee to he the person ~vhase name ~ subscribed to the fare ain i~trument and ae- g knawledged to me that hels~ie executed that instrument far the aces and eansidera, tan therein expressed. ~ri~en under my hand and seal of af~ice this da of y ~ - ~~~ X007. Notary Public, State afTexas Page ~ 3 0~ 13- q~, Anm G~ LEASE ~i ofDentvnlCross T~m~ers Park lease}~swh;~~~?0~~ s.lou~ docw~~n~slcon~rac~s1071cross t~nbers paxk ~ea~e 11 jun~7' (final}.dog u~~~: { ~.~. r~ i~ 5~ 3~ ~ li ~ f . r i ~, , ~' - .. ~~ ~~ {~ ~' a ~ e ` n Y x• kpM ~ i l' ~ `'' ~' ~' ~~ ~ ~.- ~ ~ ~ ` . ~~. ,~ ~ .~~~~ .~ ~.~ ~.~ ~~~~~~ ~~~~,~ ~h~~~ .~,~~ ~~~°~ ~~ ~ c~~.~ ~`~~. ~~ €~ ~h :~~, ~' .~~~ aid c~~~~~,~ i3jj C ~qY r' ..' y...f"~ .' e t r.~ '"w ~"~, `tea: ,~~s~ k2 M1~[ s ~ ~. , ~ t z s -0~ ~~~ , ~~ .ho~~ A ~~ k ~ ~ ~; ~~ ; 7 EXHIBIT A2 N B8'35'29„ E ~ *i ~~~ ~' 1 ~ 4.5 ~r~ .. ~ ^ r ^ //~~~y ~ ~{ ~ ~~~~ Vy ~~ ~ ~ ~ ~ fir, nn ii i~~~+ Vf1~Y .~i~ ACi THE ~. ~U~l'iERI~IN 1iV~~ IV ~ ~ ~~` ~~ ~ x ~ ~ p ~~ ~ SAMARITAN SCOCiE'iY DF SIOUX FA[,LS~ sou~ aA~torA ~~ ` . LET 39, BLACK 1 ~' ° ~ T ' Op~• ~p ~ RYAS RAI~C~ rn CI1 1f OF DEiVTOI~ ~ l:'HASE 1 CAB, , P. 920 ~ ' ~ ~ OL 2~4, P, X91 ~ "UkKE FORE`Sf PARK" ~~ ~~ ~a ~l. T, N 21'48'14 E 2fifi.9~ ~ ~ N 88'32'21" E 253.8} N 00'~7~04" E ~~.~~ ^ w ^ ~ ^ ^ a ~REE~C~A~E DRS E ~ ~, ~~~~ ~ 28'03'3" E 373.1' W ~~~ D ~ ~~ ~ ;~ ~ ~9.4~ ACRES Vf ~ o ~. ~. ~ ~ ~ ~~~ ~~~ ~ ~ ~~~ l~~s t ~~ c~ o SOT 23, BLOCK E W ' ; ~ ' BNQEAVOIi ENr RESGURCES . ,. , RYdN RANCH N 1 ~ 19 04 342.3 PHASE ! ~ ~ ~ ~ ~ '~ i C.F.N. -i a~734 ~ CAB. S, P. 12C P.R.p.C,T, ~ ~ ~ - ~ ~ ' R=1130.0' ~~ ~~ °_ ~ ~; L=217.7' ' ~~ ~-~ 0 ~' CN= ~ 04'47 56" 217,4' ~ a~i1*o~'~s" ~...^^ R~1130,0' ~.=208.$ ' ~ CHI ~ 0fi 00 48 E 208,5 ' ' " ry~~ ~ D-~ 10 35 13 `~ r B9'48'S1" ~ ~4. Vi } M a ^ ~ ^ ^ ^ ~ ~~ ~ ~~,11YC PHASE 3, SECTION A . ~~ ~. ~~ ~~~ LEASE EXHIBIT TRACT 5 ACh~E MEOAUN~T CITY OIL ~EI~T~N ~~~~~l S~QI~~S DENTON COUNTY, T~~CA ~ 5~ 60 ~Il~ 11~ ~I1 4 DAWN, CF JOB ~. 1315 ~• ~, ~DX 6~6 OENTQN, T~~fAS 76$0 CHECICEp: WIC PATE: 3-23-D7 PH~940}~65-8~15,FA~ {940}5~5-980, REV~~Ep: N/A 50ALE; 1 " = 3Q0' 0 5~ 3 p U V~WV~.C~LE~IANSU~YEYING.Ca~I X007 COL.EwIAN ~ ASSOC, SLIRYE1CiNG AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Planning and Development Department ACM: Howard Martin, 349-8232 SUBJECT - Z06-0026 (Hills of Denton) Hold a public hearing and consider an ordinance regarding the rezoning of approximately 2,120 acres from Neighborhood Residential 2 (NR-2), Neighborhood Residential 3 (NR- 3), Neighborhood Residential (NR-4), Neighborhood Residential 6 (NR-6), Neighborhood Residential Mixed Use 12 (NRMU-12), Neighborhood Residential Mixed Use (NRMU), Commercial Mixed Use General (CM-G), Planned Development (PD-120) and Rural Residential (RD-5) zoning districts to the Hills of Denton Master Plan Community (Hills of Denton MPC) zoning district. The property is generally located north of Loop 288, west of Locust Street (F.M. 2164), south of Milam Road and east of Bonnie Brae Street. The Planning and Zoning Commission recommends approval of this rezoning request (7-0) subject to three conditions. Staff recommends that this item be continued to the next scheduled City Council public hearing date of July 17, 2007. The purpose of the continuation is to allow for staff and the applicant more time to address additional comments prior to bringing it forward to Clty COU11c11. BACKGROUND Applicant: Tomlin Investments Addison, TX On April 3, 2007, the City voluntarily annexed approximately 1,199 acres into the City of Denton. The recently annexed property is part of the 2,120 acres the applicant is requesting to rezone into a Hills of Denton MPC zoning district. The Hills of Denton MPC is being designed as a traditional mixed-use development. The development will consist of approximately 1,427 acres of Single Family development, approximately 146 acres of Town home development, approximately 110 acres of Multi-Family development, approximately 183 acres of Commercial, approximately 93 acres of Office/Commercial development, approximately 57 acres of Town Center Commercial development, and approximately 104 acres of Town Center Residential development. The Master Planned Community also includes amenities such as Corridors, Trails, Project Entry, Ponds, an Amenity Center, Community Centers and Hike and Bike Trails. On May 9, 2007, The Planning and Zoning Commission recommended approval of this rezoning request (7-0) subject to the following three conditions: 1. That a legal review is completed and a development plan map is included; and 2. That a phasing plan is included; and 3. That a developer's agreement for water and sewer improvements is approved. The following are development thresholds that apply to only the Hills of Denton development: Maximum Number of Single-Family 5,708 Detached Units Maximum Number of Single-Family 1,756 Attached Town-home Units Average Single-Family Density 4.74 units per acre (includes Town-homes) Maximum number ofMulti-family 2,204 Units Average Multi-family Density 20 units per acre Maximum number of Units in Town 4,152 Center ~* Total Number of Units 13,820 Single-family to Multi-family Ratio 54°%o SF to 46° 01~1F (including Town Center) Single-family to Multi-family Ratio 77?~ o SF to 22.8° o I~IF (excluding Town Center)' A minimum of 2,000 single-family houses shall be constructed (permitted) prior to any multi-family units being constructed. * Based on average maximum density allowed and excludes Town Center. Maximum number of Multi-family units (excluding the Town Center) shall not exceed 2,204 units. *'~Based on Zoning (30 units per acre in Town Center Residential and 18 units per acre in Town Center Commercial). On May 30, 2007, the Public Utilities Board recommended approval of a Developer's Agreement regarding water and wastewater. The agreement was considered and adopted by City Council on June 5, 2007. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 3, 2007 City Council held the second and final reading of the Ordinance to voluntarily annex approximately 1,199 acres of land, which is part of the Hills of Denton Master Planned Community Development. April 1 1, 2007 Planning and Zoning Commission Work Session April 18, 2007 Planning and Zoning Commission Work Session May 9, 2007 Planning and Zoning Commission Public Hearing May 30, 2007 Public Utilities Board Meeting OPTIONS 1. Continue to next City Council public hearing date of July 17, 2007. 2. Deny continuation and hold public hearing. 3. Table item. RECOMMENDATION Staff recommends that this item be continued to the next City Council public hearing date of July 17, 2007. F,XHTRTT~ 1. Staff Analysis 2. Proposed Concept Plan 3. Conceptual Single-Family Density Distribution 4. Proposed MPC Zoning Document 5. Proposed MPC Development Standards Document 6. Existing Conditions 7. Existing Zoning Map 8. Proposed Zoning Map 9. Phasing Plan 10. Future Land Use Map 11. Notification Information 12. May 9, 2007 Planning and Zoning Commission Minutes Respectfully submitted: .,,. 4, ~ ~, . ; ~ ,.~ ~, Brian Lockley, AICP, Interim Director of Planning and Development Prepared by: x . ~.~: +' x .. ... • 'Y ' A f . h .. '{ f Ron Mengutia Planner III EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS CASE NO.: Z06-0026 DATE TO BE CONSIDERED: June 19, 2007 LOCATION: The property is generally located north of Loop 288, west of Locust Street (F.M. 2164), south of Milam Road and east of Bonnie Brae Street. APPLICANT: OWNER: Tomlin Investments 4265 Kellway Circle Addison, TX 75001 Denton 288 L.P. 4265 Kellway Circle Addison, TX 75001 REQUEST: Consider to rezone approximately 2,120 acres of land from Neighborhood Residential 2 (NR-2), Neighborhood Residential 3 (NR-3), Neighborhood Residential (NR-4), Neighborhood Residential 6 (NR-6), Neighborhood Residential Mixed Use 12 (NRMU-12), Neighborhood Residential Mixed Use (NRMU), Commercial Mixed Use General (CM-G), Planned Development (PD-120) and Rural Residential (RD-5) zoning districts to the Hills of Denton Master Plan Community (Hills of Denton MPC) zoning district. RECOMMENDATION: The Planning and Zoning Commission recommends approval of this rezoning request (7-0). COMPREHENSIVE The subject site is located within the Rural Areas, Neighborhood Centers, PLAN DESIGNATION: and Commercial Mixed Use Centers future land use designations. SITE AND The approximately 2,120 acres site is currently undeveloped except for SURROUNDINGS: some existing structures. There are approximately nine existing structures on site, all of which will be removed. North: Extraterritorial Jurisdiction (ETJ) South: Regional Center Commercial Neighborhood (RCC-N) and Planned Development (PD-120) East: Neighborhood Residential2 (NR-2), Neighborhood Residential4 (NR-4), Neighborhood Residential6 (NR-6), Neighborhood Residential Mixed Use (NRMU) and Commercial Mixed Use General (CM-G) West: Extraterritorial Jurisdiction (ETJ) BACKGROUND On April 3, 2007, the City voluntarily annexed approximately 1,199 acres INFORMATION: into the City of Denton. The recently annexed property is part of the 2,120 acres the applicant is requesting to rezone into a Hills of Denton MPC zoning district. The Hills of Denton MPC consists of approximately 2,120 acres and encompasses a traditional mixed-use development. The development will consist of approximately 1,427 acres of Single Family development, approximately 146 acres of Town home development, approximately 110 acres of Multi-Family development, approximately 183 acres of Commercial, approximately 93 acres of OfficelCommercial development, approximately 57 acres of Town Center Commercial development, and approximately 104 acres of Town Center Residential development. The Master Planned Community also includes amenities such as Corridors, Trails, Project Entrys, Ponds, an Amenity Center, Community Centers and Hike and Bike Trails (see Exhibit 1). ANALYSIS: Comprehensive Plan On March 27, 2007, City Council adopted an ordinance that exempted Analysis: Master Planned Communities from the requirements of processing a Comprehensive Plan amendment as part of the MPC proposal if the MPC incorporates the goals and objectives of the Denton Plan. The proposed MPC proposal is consistent with the goals and objectives of the Denton Plan. Development Pursuant to Subchapter 35.7.12.2.D.1 of the Denton Development Code, the Code/Zoning Analysis Hills of Denton MPC must comply with the Code, except where modifications are proposed. The applicant has submitted a MPC Zoning Document and MPC Development Standards Documents that outlines the alternative development regulations and standards that deviate from the provisions of the Denton Development Code. The following are alternative development regulations and standards the applicant is proposing to deviate from: Subchapter 5 of the Development Code is replaced with the following zoning districts: SF Single Family Residential TH Town Homes (Attached Single-Family) MF Multi-family Residential C Commercial O Office TCC Town Center Commercial TCR Town Center Residential Only land use categories listed in Exhibit 4, MPC Zoning Document are permitted in the Hills of Denton development. A list of permitted uses, uses permitted with a Specific Use Permit (SUP), and limitations for each of the land use categories are presented in Exhibit 4. The following general regulations apply to only the Hills of Denton development. General Regulations: General Re ulations SF TH MF C 0 TCC TCR Minimum lot area (square feet) 5,500 None 2,500 2,500 2,500 None None Minimum lot width None None 20' S0' S0' None None Minimum lot depth None None 50' None None None None Minimum front yard setback 20' 10' None None 10' None None Minimum side yard 0' 0' 6' None None None None Minimum setback between 10' 10' N/A NIA N/A NIA NIA dwellings Minimum side yard adjacent ' ' ' 10 10 None None 10 None None to a street Minimum yard abutting a residential use N/A N/A 20' 20' 20' 0' 0' or district Density (dwelling units per acre) 4 12 20 0 0 18 30 Maximum FAR NIA N/A N/A 1.5 1.5 3.0 1.5 Minimum residential unit ~ ~ size (square feet) 1,800 1,400 500 500 0 750 750 Maximum lot coverage 70% 80% 80% 80% 85% 85% 90% Minimum landscape area 30% 20% 20% 20% 15% 15% 10% Maximum building height 45' 45' 65' 65' 100' 100' 100' * Minimum setback between townhouse dwellings (attached single family) refers to groupings of units not individual units. ** Minimum residential unit size may be reduced to 1,300 square feet for an Active Adult Retirement Community (see Site Design Standards for required architectural features) Clustering Standards/Density Transfer: Non-Attached single-family residential units may be clustered within the SF (Single-Family) zoning districts provided the following standards are met: A. The maximum number of single-family units built in the SF (Single- Family) zoning districts may not exceed 5,708 units. a. The total number of platted single-family lots shall be tracked by the developer as individual Final Plats are submitted for review. (4 units per acre) is the controlling be transferred under common ownership. The following are development thresholds that apply to only the Hills of Denton development. Development Thresholds: Maximum Number of Single-Family Units 7,464 Average Single-Family Density (includes TIC 4.74 units per acre Maximum number of Multi-family Units' 2,204 Average Multi-family Density 20 units per acre Single-family to Multi-family Ratios 77.2% SF to 22.8% MF Maximum number of Units in Town Center ~~ 4,153 Single-family to Multi-family Ratio 54% SF to 46% MF (including Town Center) A minimum of 2,000 single-family houses shall be constructed (permitted) prior to any multi- family units being constructed. '~ Based on average maximum density allowed and Excludes Town Center. Maximum number of MF units excludin the Town Center shall not exceed 2,204 units. '~'~Based on Zoning (30 units per acre in TCR and 18 units per acre in TCC). The single-family land use including townhomes has an overall density of 4.74 per acre. Staff had concerns with the proposed single-family use not having different densities. After meeting with staff the applicant is proposing a Conceptual Single-Family Density Distribution Exhibit (see Exhibit 2) to provide a density distribution goal for single-family use. The exhibit illustrates a distribution of density areas. The exhibits illustrates a density of 5.5 units per acre close to the Town Center, 4.5 units per acre extending north away from the Town Center, and 3 units per acre along the northern boundary buffered from the Town Center by the other two density areas. In addition to Subchapter 5, the applicant is proposing to deviate from Subchapter 13, 14, 15, 16, 17 and 23. The propose language to these subchapters are presented in Exhibit 5, MPC Development Standards Document. Because the MPC is proposing a new set of zoning districts, new standards and requirements by zoning district and land use categories had to be modified and/or created. The new standards and requirements are presented in Exhibit 5. The Hills of Denton MPC development shall comply with all standards and requirements in Subchapter 3 5 except as described in Exhibit 5. Modifications to the Denton Development Code include the following: ^ creating a new landscape and tree canopy requirements (requirements are generally less restrictive than what is currently in the code) ^ modifying access, parking and circulation requirements ^ permitting parking structures ^ permitting parking in front in all districts except Town Center Commercial and Town Center Residential ^ modifying site development requirements/standards for single- family, multi-family and non-residential (commercial and office buildings) ^ creating site development standards for Town Center Multi Family, Town Center Nonresidential and Mixed Use Buildings, and Big Box ^ modifying existing parking space requirements and adding new parking space requirements for new land uses ^ creating a graphic exception for effective area of signs ^ modifying expiration time for General Development Plans and Preliminary Plats ^ permitting through lots ^ permitting up to 10% of an area that may be disturbed for trails and clearings, but no closer than 25 feet from the stream bank within a Riparian Buffer and Wetland Related Habitat DEPARTMENT AND The Development Review Committee reviewed the rezoning request and AGENCY REVIEW: provided comments and general information. Staff is working with the applicant to address the following comments. Planning: ^ According to the Master Plan Community ordinance, the zoning document should provide within the development, the approximate locations for schools, fire stations and police stations. These services are proposed, but the locations of these services have not yet been identified on the plan. The applicant's response "If ire stations, police stations, libraries or other public facilities are needed in the future, the applicant will work with and or negotiate with the City and the associated departments on appropriate locations for those uses. The applicant will also meet with the Parks Department on this issue and will strive to locate school sites adjacent to parks and open space. " Engineering: ^ A developer's agreement for the Water and Waste Water must be in place prior to the release of water, waste water and drainage comments. ^ Staff will not support block length of 1000 feet and a cul-de-sac length of 1000 feet. Any platting related comments will be addressed during the platting of the development. FINDINGS: Pursuant to Subchapter 35.7.12.6, before approval or adoption of an application for a MPC Zoning Document, the Planning and Zoning Commission shall find: A. That the development proposed furthers the goals of the Denton Plan. The subject site is located within the Rural Areas, Neighborhood Centers, and Commercial Mixed Use Centers future land use designations. According to the Denton Plan, the future land use designations are described as follows: Large-Lot Rural Single family large-lot residential uses will be regulated. Outside of the urbanizing areas the size of the lots will be based on Denton County requirements. The remaining land within these areas would remain as agricultural uses. The applicant is proposing low density single family development within the Rural Areas future land use designation. In addition, the applicant is proposing to preserve approximately 300 acres of floodplain where much of the Rural Areas future land use designation is located. Nei,~hborhood Centers/New Neighborhoods Within the undeveloped urban and urbanizing areas of the city, new neighborhoods may develop in conventional patterns. Mixed-use and mixed housing types will also be allowed to develop in a pattern of `neighborhood centers'. These are oriented inwardly, focusing on the center of the neighborhood. These neighborhoods will exemplify the inter-relationship between quality of development, density, services and provision for adequate facilities. These developments should locate the center of the neighborhood within a S- to 10-minute walking distance from the edge of the neighborhood. The center contains uses necessary to support the surrounding neighborhood. These support uses could include service-oriented retail such as a small grocery, hair salon, dry cleaner or small professional offices. Residential uses may occur at higher densities with townhomes or residential flats above service oriented uses. Open space is encouraged in neighborhood centers with park uses including central neighborhood "greens " and floodplain preservation. Civic uses such as fire stations, schools, libraries, and mass transportation nodes are encouraged to be essential elements of neighborhood centers as landmarks that are a focus to the neighborhood. Limited multistory development in the neighborhood may be developed to incorporate shops on the ground floor and offices or residences on the upper floors. Neighborhood centers may develop with uses to serve individual neighborhoods as well as the entire city and surrounding area if designed as part of a comprehensively planned large-scale development of 125 acres and above. The Neighborhood Centers land use designation allows new neighborhoods to develop in conventional patterns. It also allows for mixed-use and mixed housing types. The applicant's proposed zoning map is generally consistent with what is designated on the future land use plan. Community Mixed-Use Activity Center The focus area of a community activity center contains the shopping, services, recreation, employment, and institutional facilities that are required and supported by the surrounding community. Thus, a community activity center could contain a supermarket, drug store, specialty shops, service stations, one or more large places of worship, a community park, mid-size offices, and employers, high- to moderate-density housing, and perhaps an elementary or middle school. It includes vertically integrated uses where different uses may occur on each floor of the building. Areas within the Community Mixed Use Activity Centers may be developed with uses to serve the entire city and with supportive residential and commercial uses if designed as part of the comprehensively planned development of 125 acres and above. The future land use plan identifies the northwest corner of Locust and Loop 288 as Commercial Centers (see Exhibit 10). As described above the focus area of a community activity center contains the shopping, services, recreation, employment, and institutional facilities that are required and supported by the surrounding community. The applicant's proposed zoning map is generally consistent with what is designated on the future land use plan. The Hills of Denton MPC is consistent with the goals of the Denton Plan. B. In the case of proposed residential development, that the development will promote compatible buildings and uses and that it will be compatible with the character of the surrounding area. The proposed residential development by utilizing the general regulations and site design standards outlined in the Hills of Denton MPC will promote compatible buildings and uses. The surrounding area is rural and generally undeveloped. As development occurs along the periphery, buffer and screening requirements will be required to provide compatibility with the character of the surrounding area. C. That the provisions for public facilities such as schools, fire protection, law enforcement, water, wastewater, streets, public services and parks are adequate to serve the anticipated population within the MPC District. Based on the Cost Impact Analysis conducted by the applicant the following information is provided.' Schools The analysis identified the type and number of schools required based on the anticipated population within the MPC District. Based on Denton Independent School District factors, S elementary schools, 1.5 Middle Schools, and 0.7 High Schools will be needed to support the development. Water A 36' water transmission line exists along the south side of the subject property (north side of Loop 288) from a point approximately 5000 feet west of Locust to Locust and beyond to the east. Water mains internal to the project will be designed and constructed to provide water service to the entire project from this 36" main. Due to water pressure considerations, services above approximately elevation 705 msl will not be able to be served from this line. Due to the limited amount of land in the project above elevation 705 msl it is currently not anticipated that any property above 705 msl will need to be served. Sanitary Sewer The city has acquired a treatment plant site and identified a sanitary sewer interceptor alignment for the Clear Creek Treatment Plant and interceptor. This proposed interceptor would extend up and into the subject tract along Milan Creek. Depending on the cities analysis of other basin needs an interim solution to the construction of the Clear Creek Plant may be considered. One interim solution may be to place a lift station on the Milan Creek Interceptor and force flow south along Stuart Road to an existing gravity sewer south of Loop 288. Sanitary Sewer mains within the project will be designed and constructed so that all flows will be delivered to the Milan Creek Interceptor. Drainage Virtually the entire project drains to drainage courses located on the project which in turn drain into a section of Milan Creek which is also located entirely on the subject property. The current intent of the project is to preserve existing drainage courses in greenbelt buffers, in part, to convey storm water runoff to Milan Creek and downstream. Preservation of these natural drainage courses will also eliminate the need for onsite detention. Internal drainage systems will be designed and built to convey storm water runoff to these drainage courses located on the property. No offsite easements are anticipated at this time. Traffic The project developers have coordinated with the Mobility Committee and support the current Mobility Plan amendment which identifies several arterial roadways in the project. Detailed traffic analysis will be performed with design phases to justify the size and location of these roadways. Preliminary trip generation projections for the planned project were taken into account when preparing the proposed Mobility Plan Amendment. D. In the case of proposed commercial, industrial, institutional, recreational and other non-residential uses or mixed-uses, that such development will be appropriate in area, location and overall planning for the purpose intended. The location of proposed commercial, institutional, recreational and other non-residential uses or mixed-uses is proposed in appropriate areas. The majority of the proposed Commercial and Office zoning districts are located at the northwest corner Locust and Loop 288. There are four other proposed Commercial zoning districts located along major arterials located throughout the development (see Exhibit 2). Recreational and other non-residential uses or mixed-uses are proposed within the Town Center zoning districts. The Town Center zoning districts are located close to higher density and more intense uses and where two major arterials meet. E. That the development is fiscally sound, as demonstrated in the Cost Impact Analysis, and is consistent with adopted policies, infrastructure plans and applicable Capital Improvement Programs (CIP) and that the Development Plan sets forth the phasing and the plan for paying for the infrastructure and responsibilities for payment. The City of Denton Utilities and Legal Departments and the owner/developer have been negotiating an agreement for the pNOVisions for sanitary seweN and wateN facilities for the development for approximately one year. In negotiating this agreement City Utility Department representatives considered pNOject Nequirements and impacts to planned city facilities to serve the project and the entire Clear Creek basin of north Denton. The agNeement clearly consideNS project water and sewer layout, demand, and loading requirements and the schedule at which additional infoNmation will be NequiNed. The agreement requires the owner to pay the City One Million DollaNS foN which the City will build the first phase of the Clear Creek interceptor and treatment plant/lift station alteNnatives. Exhibit 2 Concept Pla n 2,120.6 TOTAL ACRES L~NI~ UE~ ^ Single Family ~~,427 +~- acres 1 Tawnf~ome ~~4~u.3 +l-acres} _1 Multi-Family ~~~~.2 +~- acres ~~1 l_ ~ commercial ~~~~.~ +l- acres ETJ ^ office I commercial ~~~ +1-acres) Town ~Ce~ter commercial {~~.2 +~- acers~ .~ ^ T~wr~Center Residential ~~~4.1 +1- aces ~ ~, ~---.._ . - :~meniti~~ f"~B ~ ~~{ Flood PlaJn ~cJnstudJed) I Open Space (Up to 3~O acres) r Corridors I Trails I En trys ~'°.t Ponds ~~ ~ ti ~ - - - ~~; •; AmmenityCenter~6,~~~- 90,~~0 SF) ` ~~~ Cons~ruc~ed wJth Phase l , ~° ,~. ,. ~ --1 f rF } ~~/ . f/r, f! 17 '~r f 1`' '~ ~ ~" Community Center ;, ~~, ~ /~~ /~ . , ~ Hike & Bike Trails ; .%~' '~ .,~ -.: ~y ~``~~~ , '~ f,~ fir ~ r r/ r / I r'. ~r! /~~ ~/ .. _ X1.8 r%~/'/ %If~/,f '~,. ,r 1 ~* t ~ /''r ' ` / /~ ~'., ,, ,, .. J , - ` r '~F ~ r' 1~ Lr:u;ATIi.-N MAP Maycr die CitySecr~ary date SNa N ATU R E B L{ FI: K ~~ ~~ ~. ,~ . ETd ~~ b ~l- A~. 15,1 +,+ . ,~' t,~ 1~5~ +l- AC .~. ac :f!/ rI / f /~- /, ~/ ~ /. r~~ . ~' /r',e - ~ ~r ,.III, .! ~ !f ` ;~ r~T~ .~; % ~ r rr ++. . ~~~r/ rf > f r r; ,;d %: ~ ~ f ~~ 15~ b +I= A~ r" ~r `~` ~ ~ f:~ .~;- r `~ 1~ ~ ~ ~ ~ ti, ~ lib„~ ~~` ~L~. ~ r.~"" 'r% ~f ~~ ~`~'' ~~( .4 ' ~. r TJ b~4. ~ f1- A~'. .r ~ ~/ .~~f `~ ~ r, ~ ^~ ~ . .. ~ /~ / i ~ r s~~ r1 5 -1 ;~ a,. ~ r . - Collector - `;~ 129,E +!- AC. ,, ` ' r ~, . ;~ ~ r 1? r ,. +~ y r I ~~ 'ti ~ '~ ~ #~~~~~~~'i l + ~~'~'i ~_J 1111 ~ ~ ~ `~ 1Q 4 .I 17" ~ #d„ ~/ro .. ~ I { i : . ~ //+* } . `. b5.1 +,f- ,4C. ail ~ 14 ~~i~~ ' , it HILLS OF DENTON E~~„n,~3 Conceptual SF Density Distribution L~:~1~I~ ~T~E ^ Single Family {1,4~~ +~-acres} Averai~~ ir~l~e-F~imil ~~r~it~ ~4 unit per ~i~cre} "u~+~rr~s„ ul#ima#emaxirr~um numk~er~fsinl~-f~irrrilyuni#s. ^ Towr~home {146. +~- acres •~,42~.~ F acres = A maxim~im of ~.~ F uni# Multi-Family {116.2 +~- acres ^~ensity Areas identified would be limited #~- a maximum density as identified ^ Commercial {1~2. +~-acres} ^Ultimate "o~rerall'~ density would = 4 uni#s per acre. ^ office ~ Commercial {~3 +~- acres a ~ensi#y tracked with each plat. a Vince ~,~0~ SF units platted no additional ~F plats approved. ^ Town Center Commercial {6~.2 +~- acers~ a Remaining property cif any} would remain as open space. ^ Town Center Residential {164.1 +~- aces :amenities -'~' Flood Plain unstudied) I Dpen Space ~ Up ~0 3~~ acres) r~ ~orridorslTrailslEn~rys x.6.1- AC ~~ ~ _ +~- AC r ,: .. Ponds , -- - - - ; ,,: 19 7 ,/,~ - - -.+I-.~C ~ 1~ ~ %/ r Amrnenity Center (6,0~~ - 90,~~~ SF) '~~; ~ ' "~' "~ 8~1=~ +1- A~: i.~ ,err ,r, ~i. ~~. Constructed ~vith Phase l ~ :f~:~,'f 1~5 ~~- ,~ ~/ ''.l ..k.. Co~rmuni~y Center ~,~' ~. ~ Density Area ~ ;,, `i.. Hike & Bike grails ~~~%?~Maximum in~le-Family Density= 3 Units perAcre %~r;,. r, Maximum in~le-Family Units =1,~6~5 ;;~~'' `~'~. q~+ r rrf r : : ,: ,•r~ r / r r: } ~~_ M14.: `fir' fff'f r.ff~~• +~rr f//~ r /r:: f /If/////J~jfff/~fff//~Jff!///f~/{~r': ~ ! r r ~l •r %// i ,r ~/ ,r/ l / f l 56 ~ } , //r !r/,ri// ~~~.'~J/~ fir' fr~f~ ~ ~~f~ I/r '~' ~ ~ f 'I'f•/~~' ~f' r~4 t '/`~Jf/f/~~ r~rf r lr~~ ~/: /:r/ ~~! ,,: it : 1'f r lrf : r" f r r/!f~ f r~, r r r' f /'r`r !:•' , r ,r// r r,Jfr ;~/ ~~ rf fr r r '% ' ~~r !{ rrrJ`r`' `!r/~~ '~ f r%/~rJ / ~~ r %i ."~' / i fr' . r /rr'' ; f //fj/// £{//J/ff~//// ~ ,, , ,~, /fir' fj/{/f f~f/f, ~ ~, #.J _ f/ rr'~ ~~ /rrr f{ G/ }T ~ ~ f r /~: I F ;. J J~ ~ /Jr / : J // ~~! ,}//~! r/ ~ r ' f rf ~jr rf rl r £ r ;; ;~.%~ ` Density Area 1 rr/:f ' ~; Maximum Single-Family %' Density = 4.5 Units per Acre r ~ '~ 72 }J- A~. I' %~~-~i Maximum Single-Famly Units = 2,1 fr i/ /~r/f / f ! r , rf r ~f ri 1 ` G:: r'frrr` ~, ' ~~r ~ .~J r ~+ ~ ~ 1$6:.3 +d- ~G / :/~'/r ~ r /~ ' f 1 ~ - ~ r~r /. ' ' ~y{ L i ~ 1 f fF ~ , r +rf / ' 1 rr r '.,' ~ . L r rh S+~~I r J ~ 5 '~~ r ff~.' "~ ,r` Density Area ~ ,r'`~, r, 1%r ~ 71.5 +1- A~. 19.8 +~- ,~~ {~ J ;,ff, k; ~ r~' l Maximum Single-Family f r k Density = 5.5 Units per Acre T `" { ~~ 6 ' ~ 3C1 +! ' ~C ~ M r'' aximum Single-Family Units = ~,~a~• ._ _ .. ~~• ~~. , ~ a 11 ~ ~ ~ ~ 4: a~ ___ li ~ ~r - -- -- ~ _ ~y ~ - . ~ • _p ~ 18.8 t • r - r~sL ~ +~~.~ i~. 65. / A ~ +.1- ~C ~ 1 21 ~ ~, ~ ~ 15~ ~~• ~`~ 16.! ~ ~C «l- ~C f y 3~ 3 ~1- ~~. 23.8 ~ ' ~ ~ ~ - +~4 {, ' w t y ~' `~~ ~~ 3 f +f~~ 29.E *~. ,~~ _. +d- ~C ~ a ..' ~ ~ ~ ~ 6~ .1 +~ - ~~ 53.9 +l ~ ~C ~, ~ ~ r ~_ ~ --- } - ~l• f ~ ~ ~~ *1_ AC, - 1~~ i LOQP ~$ 1~~-~,r~~ o aoo ~aoa Fr . _ _ _ .. ~:~~*'~~~~~~~°~~ -~~~1~~~f ~~~~~ T~ ~11~iLII~ IN~TE~Tl1iEl~T' E~ibit 4 Case Managers Copy Items in Blue indicate deviation from code or additional standards, item in green indicate revisions from the previous submission Hills of Denton Zoning Districts and Limitations May 2007 Planner: Developer: Spring Brook Planning Group Tomlin Investments 2405 Mustang Drive 4265 Kellway Circle Grapevine, TX 76051 Addison, TX 75001 Land Use Districts and Limitations: Subchapter 5 of the Development Code is replaced with the following: Only uses listed in the tables below are permitted in the Hills of Denton development. If there is a question as to whether a use not listed below is permitted, the Director of Planning shall make a determination whether the use is permitted or prohibited. SF Single Family Residential TH Town Homes (Attached Single-Family) MF Multi-family Residential C Commercial 0 Office TCC Town Center Commercial TCR Town Center Residential Permitted use Table: Residential Land Use Categories SF TH MF C 0 TCC TCR Agriculture HL(11) HL(11) HL(11) HL(11) HL(11) HL(11) HL(11) Livestock HL(2) N N N N N N Sin le Famil Dwellin s P P N N N N N Accesso Dwellin Units ~ g SUP HL(1) N N N N N N Attached Single Family Dwellings SUP P HL(10) N N P P Dwellings Above Businesses N N P P N P P Live/Work Units N HL(5) P P N P P Duplexes N P N N N N N Community Homes For the Disabled P P P P N N P Group Homes N N SUP N N N SUP Multi-Family Dwellings N N P N N P P Manufactured Housing Developments N SUP SUP N N N N P = Permitted, N =Not Permitted, SUP =Specific Use Permit Required, L(X) =Limited as defined on page 4 of this section Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 1 of 5 Commercial Uses SF TH MF C 0 TCC TCR Home Occupation P P P N N P P Sales of Product Grown on Site N N N P N N N Hotels N N P P P P P Motels N N N P N N N Bed and Breakfast N N P P SUP P N Retail Sales and Service N N HL(6) P P P P Movie Theaters N N N SUP N P SUP Restaurant or Private Club N N HL(3) P P P P Drive-through Facility N N SUP P P N N Professional Services and Office N N HL(6) P P P P Quick Vehicle Servicing N N SUP P P N N Vehicle Repair N N N P P N N Auto and RV Sales N N N P P N N Laundry Facilities N N P P P P P Equestrian Facilities SUP N N N N N N Outdoor Recreation P P SUP P N N N Indoor Recreation P P N P N N N Major Event Entertainment N N N SUP N P N Commercial Parking Lots N N N P P P P Administrative or Research Facility N N HL(4) P P N N Broadcasting of Production Studio N N HL(4) P P N N Sexually Oriented Business N N N N N N N Temporary Uses H L(9) H L(9) H L(9) H L(9) H L(9) H L(9) H L(9) P = Permitted, N =Not Permitted, SUP =Specific Use Permit Required, L(X) =Limited as defined on page 4 of this section Industrial Land Use Categories SF TH MF C 0 TCC TCR Printing /Publishing N N N P P N N Bakeries N N N P P P P Manufacture ofNon-odoriferous Foods N N N N P N N Feed Lots N N N N N N N Food Processing N N N N N N N Light Manufacturing N N N N P N N Heavy Manufacturing N N N N N N N Wholesale Sales N N N N N N N Wholesale Nurseries HL(12) HL(12) HL(12) HL(12) HL(12) HL(12) HL(12) Distribution Center N N N N N N N Wholesale Storage and Distribution N N N N N N N Self-service Storage N N N N SUP N N Construction Materials Sales N N N N N N N Junk Yards and Auto Wrecking N N N N N N N Kennels N N N N N N N Veterinary Clinics N N P P N N N Sanitary Landfills, Commercial Incinerators, Transfer Station N N N N N N N Gas Wells SUP HL(8) SUP HL(8) SUP HL(8) SUP HL(8) SUP HL(8) N N P = Permitted, N =Not Permitted, SUP =Specific Use Permit Required, L(X) =Limited as defined on page 4 of this section Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 2 of 6 Institutional Land Use Categories SF TH MF C Off TCC TCR Basic Utilities H L(7) H L(7) H L(7) SUP SUP N N Community Services N N P P P P P Parks and Open Space P P P P P P P Churches P P P P P P N Semi-public, Halls, Clubs and Lodges SUP SUP P P P P N Business /Trade School N N HL(4) P P N N Adult or Child Day Care SUP SUP P P P P N Kindergarten, Elementary School P P P N N N N Middle School P P P N N N N High School N N SUP N P N N Colleges N N P P P P P Hospital N N N N P N N Elderly Housing N SUP P N N P P Medical Centers N N P P P P N Cemeteries N N N N N N N Mortuaries N N N P N N N P = Permitted, N =Not Permitted, SUP =Specific Use Permit Required, L(X) =Limited as defined on page 4 of this section. Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 3 of 6 Hills of Denton Limitations: The following define the limitations to land uses when the use table identifies a use as permitted, but limited. HL(1) =Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform to the overall maximum lot coverage and setback requirements of the district. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot. 4. One additional parking space shall be provided that conforms to the off-street parking provisions of the Denton Development Code. HL(2) =Limited too two (2) animals on parcels one (1) to three(3) acres in size. Additional animals may be added at a rate of one per each acre over three. HL(3) =Limited to sit down only, and no drive up service permitted. Limited to no more than 100 seats and no more than 4,000 square feet of restaurant area. HL(4) =Uses are limited to no more than 10,000 square feet of gross floor area. HL(5) =Uses are limited to no more than 1,500 square feet of gross floor area per lot. HL(6) =Uses are limited to no more than 20,000 square feet of gross floor area per use. Square footage may be larger with approval of a Specific Use permit (SUP). HL(7) = If propose use is within 200 feet of a residential zone, approval is subject to a Specific Use permit. HL(8) =Must comply with the provisions of § 35.22 of the Denton Development Code, Gas Well Drilling and Production. HL(9) =Must meet the requirements of § 35.12.9 of the Denton Development Code, Temporary Uses. HL(10) =Limited to a maximum density of 12 units per acre. HL(11) =Permitted on undeveloped parcels or future phases ofmulti-phased developments. Crops such as hay or row crops are permitted. Livestock shall be limited to tracts of 5 acres or larger. HL(12) =Allowed for the purposes of the Hills of Denton development. Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 4 of 6 General Regulations: General Regulations SF TH MF C 0 TCC TCR Minimum lot area (square feet) 5,500 None 2,500 2,500 2,500 None None Minimum lot width None None 20' 50' 50' None None Minimum lot depth None None 50' None None None None Minimum frontyard setback 20' 10' None None 10' None None Minimum side yard 0' 0' 6' None None None None Minimum setback between dwellings 10' 10'* NIA NIA NIA NIA NIA Minimum side yard adjacent to a street 10' 10' None None 10' None None Minimum rear yard 10' 10' 10' None None None None Minimum yard abutting a residential use or district NIA NIA 20' 20' 20' 0' 0 Density (dwelling units per acre) 4 12 20 0 0 18 30 Maximum FAR NIA NIA NIA 1.5 1.5 3.0 1.5 Minimum residential unit size (square feet) ** 1, 800 1,400 500 500 0 750 750 Maximum lot covers a 70% 80% 80% 80% 85% 85% 90% Minimum Landscape area 30% 20% 20% 20% 15% 15% 10% Maximum building height 45' 45' 65' 65' 100' 100' 100' * Minimum setback between townhouse dwellings (attached single family) refers to groupings of units not individual units. ** Minimum detached single-family residential unit size may be reduced to 1,300 square feet for an Active Adult Retirement Community (see Site Design Standards for required architectural features) Clustering Standards/Density Transfer Non-Attached single-family residential units may be clustered within the SF (Single-Family) zoning districts provided the following standards are met: A. The maximum number ofsingle-family units built in the SF (Single-Family) zoning districts may not exceed 5,708 units. a. The total number of platted single-family lots shall be tracked by the developer as individual Final Plats are submitted for review (4 units per acre) is the controlling be transferred under common ownership. DEVELOPMENT THRESHOLDS: Maximum Number of Single-Family Units 7,464 Average Single-Family Density (includes TH) 4.74 units per acre Maximum number of Multi-family Units 2,204 Average Multi-family Density 20 units per acre Single-family to Multi-family Ratios 77.2% SF to 22.8% MF Maximum number of Units in Town Center ~ ~ 4,153 Single-family to Multi-family Ratio (including Town Center) 54% SF to 46% MF A minimum of 2,000 single-family houses shall be constructed (permitted) prior to any multi-family units being constructed. ~ Based on average maximum density allowed and Excludes Town Center. Maximum number of MF units (excluding the Town Center) shall not exceed 2,204 units ~~Based on Zoning (30 units per acre in TCR and 18 units per acre in TCC) Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 5 of 6 DEVELOPMENT PLAN MAP: Prior to any preliminary plat the Developer will submit a General Development Plan (GDP) at the beginning of each phase and for each phase. The GDP shall include proposed land use, identify site access, connectivity, general public improvements, parks, and schools (if required). A GDP shall be reviewed and approved by the Development Review Committee prior to approval of a preliminary plat or conveyance plat. Instead of a GPD the Developer may submit a preliminary plat for each phase. With each submission of a preliminary plat, the developer shall submit a summary of the detached single-family unit count including but not limited to the number of units proposed in the preliminary plat, the total number of units proposed to date and the remaining number of units. Revised 5/31/2007 Hills of Denton Zoning Districts and Limitations Page 6 of 6 Exhibit 5 Case Managers Copy Items in Blue indicate deviation from code or additional standards, item in green indicate revisions from the previous submission Hills of Denton Site Design Standards May 2007 Planner: Developer: Spring Brook Planning Group Tomlin Investments 2405 Mustang Drive 4265 Kellway Circle Grapevine, TX 76051 Addison, TX 75001 Landscape and Tree Canopy Requirements: Landscape and tree canopy requirements shall comply with § 35.13.7.B of the Denton Development Code with the following exceptions: Landscape and Tree Canopy Requirements Percent Tree Districts Percent Canopy Landscape Area Coverage SF Single Family Residential 30% 40% TH Town Homes (Attached Single- 20% 40% Famil y) MF Multi-family Residential 20% 35% C Commercial 20% 3 0% 0 Office 15% 40% TCC Town Center Commercial 15% 20% TCR Town Center Residential 10% 20% Street Tree Requirements: Street tree requirements shall comply with § 3 5.13.7. C of the Denton Development Code with the following exceptions: §35.13.7.C shall be amended as follows: C. Number and Spacing. Street trees shall be planted by the following requirements: 1. Spacing along street a. Single Family Residential -spacing of street trees within single-family residential developments shall be conducted as follows: (1) A minimum of one (1) tree per lot for developments with spacing not to exceed 60' on center. (2) Corner lots for all single-family developments shall require two or more street trees, evenly spaced, depending on the length of frontage on each street for such lots. b. Multi-Family Residential, Townhome and Non-residential Developments -spacing of street trees within multi-family residential, townhome ornon-residential developments shall be one (1) tree for every 45 linear feet of street frontage. Revised 5/30/2007 Hills of Denton Site Design Standards Page 1 of 26 c. Corner lots -street trees on corner lots for all developments shall be located a minimum oftwenty-five (25) feet from the property corner adjacent to the street right-of way intersection. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 2 of 26 Access, Parking and Circulation Requirements: Access, parking and circulation requirements shall comply with § 35.13.10 of the Denton Development Code with the following exceptions: § 35.13.10.B.1.c. shall be amended as follows: Surface parking lots with greater than 150 parking spaces or more shall: o Be divided into separate areas by landscaped areas or walkways at least 10 feet in width, or by a building or group of buildings. o Provide adequate pedestrian circulation within the site. Pedestrian walkways shall be directly linked to entrances and the internal circulation of the building(s). o A raised walkway, of a minimum un-obstructive width of 5', shall be installed through parking areas for developments involving a gross floor area in excess of 40,000 square feet. § 35.13.10.B.1.d. shall be amended as follows: Permeable paving is not required for those surface parking spaces that exceed the number of parking spaces required. For each additional parking space that exceeds the number of parking spaces required; a. 100 sq ft of parking lot tree canopy above and beyond the minimum required, and/or b. 10% of additional parking lot open space shall be provided in the parking lot, and/or c. Permeable paving, and/or d. The equivalent amount of open space (i.e.1,000 sq. ft. excess parking =1,000 excess open space above and beyond minimum required) shall be provided within 100' of the parking lot. e. Any combination of the above. ^ Parking Structures are permitted. All parking structures shall require approval of an Alternative Development Plan. The intent of such approval is to ensure that the proposed architectural elevation is appropriate for the character of the area. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 3 of 26 § 35.13.10.C. shall be amended as follows: Parking Lot landscaping and Screening Standards. All parking lots, which for purposes of this section, include areas of vehicle maneuvering, parking, and loading, shall be landscaped and screened as follows: 1. Landscape Standards. a. A minimum of 7% of the total parking area shall be landscaped b. A minimum of 15% of the required parking shall be covered by tree canopy c. The tree species shall be an appropriate shade tree and shall be selected from the Tree List in the City of Denton Site Design Criteria Manual. d. The landscaped and end cap areas shall be planted with trees, shrubs or groundcover. Landscaped areas should be evenly distributed throughout the parking area and parking perimeter. 2. Screening at Right of Way. Any combination of the following may be used. These requirements are in addition to the street tree requirements: a. A 3 foot high wall made of any combination of wrought iron, masonry, stone or ecoratlve concrete pane s. b. A minimum 1 o foot wide landscape area planted with one large tree for every 40 linear feet, except along areas where parking in front of buildings is permitted. c. A 3 foot high berm with a maximum 3 on 1 side slopes planted with one large tree for every 40 linear feet, except along areas where parking in front of buildings is permltte . 3. Parking between the building and the street is permitted in all districts except Town Center Commercial and Town Center Residential providing: a. That the perimeter parking is screened by any one or any combination of the following; i. A 3 6" high masonry wall, and/or 11. A minimum 48" high tubular steel /wrought iron style fence with masonry columns evenly spaced approximately 40' on center, and/or 111. A 25' wide landscape buffer with a minimum 42" high berm with 1 on 4 maximum side slopes. 1. Landscape area must contain one large tree for every 40 linear feet. b. That the parking area between the building and the street receive: i. An additional 5% tree canopy above and beyond the 15% required (for a total of 20%). Additional canopy coverage cannot be credited towards other canopy requirements. 11. An additional 3% open space above and beyond the 7% required (for a total of 10%). Additional open space cannot be credited towards other open space requirements. 111. Parking lots shall provide interior planting islands between parking spaces at an average of every 1 o parking spaces to avoid long rows of parked cars. The planting islands shall be a minimum of 153 square feet and be protected by a 6-inch high curb on all sides and a 12-inch wide concrete Revised: 5/30/2007 Hills of Denton Site Design Standards Page 4 of 26 step-off area adj acent to parking spaces. A large tree shall be planted within this planting island. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 5 of 26 Hills of Denton Site Development Regulations: Single-Family Architectural Standards: Site Development Requirements for Residential Buildings. Any residential building that is built on a lot of less than 10,000 square feet or contains two or more dwelling units shall comply with the following standards: A. Buildings shall utilize at least three of the following architectural features: 1. Dormers 2. Gables 3. Recessed entries, a minimum of 3' deep 4. Covered front porches (The depth of the porch must be at least 6' in depth to receive credit as an architectural feature). 5. Cupolas 6. Architectural pillars or posts 7. Bay windows, a min. 24" projection 8. Covered front porches that extend along at least 50% of the front facade (excluding the garage) shall receive credit as two features) B. The garage door shall not occupy more than 40% of the total building frontage. This measurement does not apply to garages facing an alley or courtyard entrance such as side entry garages, commonly referred to as J-swings. Any front facing garage may not extend beyond the house front. Front facing garages that are at least 30 feet behind the house front may exceed the 40% frontage minimum. C. Houses with the same facade (represented by "A"below) must be separated by a minimum of three lots. A B C J E L K F A E D K F A C D B E D. Duplex buildings shall be designed to appear as a single unit. E. All walls, except gabled roof areas, which face a public street other than an alley, must contain at least 25% of the wall space in window, faux windows or doors. Only Faux windows with shutters are permitted. F. Primary entrance shall face a public street and sidewalk or be a courtyard entrance. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 6 of 26 G. Windows facing a street shall be provided with trim or shall be recessed. Windows shall not be flush with exterior wall treatment. Windows shall be provided with an architectural surround at the jamb. H. 100% of the surface area of the front side of the residential structure, excluding dormers, gables, porches, windows, doors, and bay windows, shall be masonry. The total percentage of masonry on the entire residential structure, excluding dormers, gables, porches, windows, doors, and bay windows, shall be a minimum of 80%. Masonry includes brick, stone, or stucco. I. No exterior combination of brick color, mortar color, and sand color shall be repeated within 200 lineal feet on the same street. J. A/C compressors, utility meters, and plumbing cleanouts shall be screened from view from the public right-of way using landscaping or fences. 30" (min.) height on planting material after two growing seasons. Where possible (for energy efficiency) A/C compressors should be located on the east or north face of house. K. Garage access shall not be from a primary or side street when alley access is available. L. Each detached single-family dwelling shall have a 2 car enclosed garage. M. The minimum square footage of detached single-family dwellings shall be 1,800 square feet. This requirement maybe reduced to 1,300 square feet for an active adult retirement community development. In such cases a minimum of four (4) of the architectural elements listed in "A" above must be utilized on each structure. N. A minimum of 10% of the detached single family dwellings shall be a minimum of 2,000 square feet and utilize at least four (4) of the architectural features listed in "A" above. 0. A minimum of 10% of the detached single family dwellings shall be a minimum of 2,200 square feet and utilize at least four (4) of the architectural features listed in "A" above. P. The minimum square footage of attached single-family dwellings shall be 1,400 square feet per unit. Q. The minimum square footage oftwo-family dwellings shall be 1,200 square feet per unit (2,400 square feet total). R. All dwellings shall have a roof of slate, the or 20 year composition singles with a weight of at least 240 pounds per 100 square feet. S. The roof pitch of the primary structure shall be 6 ft. in 12. minimum. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 7 of 26 MF Regulations: Any residential building designed for multiple units, either for rental or condominium ownership and their lots shall comply with the following standards: A. Orientation. 1. Orientation requirements for all multi unit buildings, except in Town Center. a.At least 50% of the front yard frontage shall have buildings within 20 feet of the property line or within 30 feet of the curb line of a private street. b.Buildings that are located within 20 feet of property line adjacent to a front yard or within 30 feet of the curb line of a private street shall have at least 40% of the wall facing the street in window or door areas. c.Parking areas shall not be located between buildings and the street. Parking lots maybe located on the sides and behind the buildings. d.On street parking, if permitted, shall count towards required parking. One on street parking space shall count as one off street parking space. 2. All projects must contain a public or private street system. All buildings must be oriented towards the street system, not parking lots. Private streets shall bee required to include sidewalks of at least 5 feet wide and include street trees according to the standards required for public streets. 3. The same exterior design may not be used for more than 3 buildings in a project nor may it be used on adj acent buildings. A variety of compatible exterior materials' use and type, building styles, massing, composition, and prominent architectural features, such as door and window openings, porches, rooflines, shall be used. B. Building materials. 1. Windows shall be provided with trim. Windows shall not be flush with exterior wall treatment. Windows shall be provided with an architectural surround at the ~ am . 2. 80% of the surface area of all exterior walls excluding dormers, gables, porches, windows, doors, and bay windows shall be masonry, provided that 100% masonry shall be required for the front side of residential structures excluding dormers, gables, porches, windows, doors, and bay windows. Masonry includes brick, stone, or stucco. No one masonry element shall be exceed 75% of the entire front facade. Non-masonry materials includes wood. 3. Metal roofs are permitted provided that they are of architectural quality. C. Open Space. 1. An area equal to at least 8% of the lot area, excepting required setbacks, shall be dedicated to open space for recreation for use by the tenants of the development. a. Private decks, patios and similar areas are eligible for up to 5 percent of the 8 percent required open space. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 8 of 26 b. Areas covered by shrubs, bark mulch and other ground covers which do not provide a suitable surface for human use may not be counted toward this requirement. 2. Play area for children should be provided for projects of grater than 50 units that are not designated as age limited or student housing. D. Architectural Requirements 1. Facade modulations/building articulation: Facades must be broken up to give the appearance of a collection of smaller structures. Elements including but not limited to balconies, setbacks and projections maybe utilized to articulate individual units or collections of units. Unarticulated and windowless walls facing streets or principle access lanes are not permitted. 2. Fronts and street sides of buildings visible from the public right of way or private street system shall include changes in relief such as columns, cornices, bases, fenestration, and fluted masonry, for at least 15% of the exterior wall area. 3. Stairwells shall not be the dominant architectural feature along any facade facing a public street or private street system 4. Accessory structures (including detached garages, carports and storage units) visible from the public right-of way, private street system and/or adj acent residential properties shall include at least three (3) of the following on the facade that is visible: a. Facade modulation of at least six (6) inches for every thirty (30) feet of wall length; b. Multiple building materials (e.g. brick, fieldstone, limestone, marble, granite, textured block, architectural pre-cast concrete, concrete composite siding, wood clapboard siding, wood beaded siding, stucco or vinyl siding); c. Multiple surface textures (e.g. rough, striated, imprinted, etc.) or patterns; d. Separation in roof pitch, variation in direction of roof pitches, inclusion or dormers, or other variation on roof design; or 5. Use of false door or window openings shall be defined by frames, sills and lintels. 6. Fronts and street sides of buildings visible from the public right of way shall include changes in relief such as columns, cornices, bases, fenestration, and fluted masonry, for at least 15% of the exterior wall area. 7. Building frontages greater than 100 feet in length shall have recesses, projections, windows, arcades or other distinctive features to interrupt the length of the building facade. 8. Adj acent buildings shall have different elevations. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 9 of 26 9. Any buildings constructed with a flat roof must contain a distinctive finish consisting of a cornice, banding or other architectural termination. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 10 of 26 Town Center Multi Family Regulations: Standards: Multi-family developments within Town Center areas shall, in addition to complying with the basic site design standards for multi-family buildings, conform to the following standards: A. Orientation. 1. At least 75% of the front yard frontage shall have buildings within 10 feet of the ROW. 2. Buildings that are located within 3 0 feet of the property line adjacent to a front yard shall have at least 40% of the ground story wall facing the street in window or door areas. 3. Parking areas shall not be located between the building and the street. 4. On street parking, if permitted, shall count towards required parking. One on street parking space shall count as one off street parking space. 5. Buildings shall be directly accessed from the street and sidewalk. 6. Sidewalks shall be a minimum of 8 feet wide along perimeter streets and 6 feet wide for all other pedestrian walkways. 7. A minimum of one ground floor pedestrian entrance must be oriented toward the street and include a porch. 8. Private garages may only be access from alleys or parking lots. 9. Building frontages greater than 100 feet in length shall have recesses, projections, windows, arcades, or other distinctive features to interrupt the length of the building facade. 10. Architectural Features. Fronts and street sides of buildings visible from public right of way shall include changes in relief such as columns, cornices, bases, fenestrations, and fluted masonry, for at least 15% of the exterior wall area. 11. Height and Bulk. Adj acent buildings shall have different elevations. 12. The top floor of any building must contain a distinctive finish, consisting of a cornice, banding or other architectural termination. 13 . Parking structures are permitted. The first story adj acent to the street (except that area needed for access) must contain commercial or retail space. All parking structures shall require approval of an Alternative Development Plan. The intent of such approval is to ensure that the proposed architectural elevation is appropriate for the character of the area 14. Buildings greater than 30 feet in height shall have architectural elements to break the height of the building facade. 15. Where possible, building shall incorporate different rooflines. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 11 of 26 Non-Residential/Commercial and Office Buildings. Commercial and office/commercial buildings ormixed-used buildings and their lots not in Town Center areas shall comply with the following regulations. A. Orientation. 1. Building frontages greater than 100 feet in length shall have offsets, j ogs, or other distinctive changes in the building facade to create shadow lines. Offsets and j ogs shall be a minimum of 2 feet in depth. 2. Buildings shall incorporate arcades, roofs, alcoves, porticoes and awnings as a design element of the facade. The planting of trees maybe used in place of these architectural elements. 3. The primary entrance of a building or store shall have a clearly defined, highly visible customer entrance with distinguishing features such as a canopy, portico or other prominent element of the architectural design. 4. Buildings shall have their primary orientation towards the street and/or parking lot. 5. Buildings that are within 3o feet of the street shall have an entrance for pedestrians from the street to the building interior. 6. Trash storage areas, mechanical equipment, and similar areas are not permitted to be visible from the street. 7. Loading docks are not permitted to be visible from the street, and may not be accessed directly from the street. 8. Parking areas that are located between the building and the street shall conform to the regulations identified in the Access, Parking and Circulation Requirements. B. Building Materials. 1. Windows shall be provided with trim. Windows shall not be flush with exterior wall treatment. Windows shall be provided with an architectural surround at the ~ am . 2. Fronts and street sides of buildings visible from the public right of way shall be 100% masonry excluding dormers, gables, porches, windows, doors, and trim. 3. Glass. Use of glass for displays and to allow visual access to interior space is permitted. Buildings may not incorporate glass for more than 70% of the building s in. 4. Metal roofs are permitted provided that they are of architectural quality. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 12 of 26 Town Center Nonresidential and Mixed Use Buildings. Non-residential buildings ormixed-used buildings and their lots a Town Center area shall comply with the following regulations. A. Orientation. 1. Buildings shall have their primary orientation toward the street rather than the parking area. The primary entrance must be readily apparent as a prominent architectural component and visible from the street. 2. Any ground floor wall which is within 3 o feet of the main street, plaza or other public open space shall contain at least 50% of the wall area facing the street in display areas, windows, or doorways. Windows must allow views into working areas, lobbies, pedestrian entrances or display areas. Walls facing side streets must contain at least 25% of the wall area facing the street in display areas, windows, or doorways. Blank walls within 3o feet of the street are prohibited. Areas oriented towards service areas or loading areas are exempt from this requirement. 3. At least 60% of the street frontage shall have buildings within 10 feet of the front property line. 4. Trash areas, mechanical equipment, and similar areas are not permitted to be visible from the public street, or are not permitted between the building and the street. 5. Buildings that are open to the public and are within 30 feet of the street shall have an entrance for pedestrians from the street to the building interior. This entrance shall be designed to be attractive and functional, be a distinctive and prominent element of the architectural design, and shall be open to the public during all usiness ours. 6. Developments shall have a minimum Floor Area Ratio of 0.4. Plazas and pedestrian areas shall count towards floor area for the purposes of meeting the minimum floor area ratio. 7. Buildings shall incorporate lighting and changes in mass, surfaces or finish to give emphasis to entrances. 8. The top floor of any building will contain a distinctive finish, consisting of a cornice or other architectural termination. 9. Balconies may project over the public right of way, subj ect to an encroachment agreement issued by the City. 10. Parking areas shall be located in parking garages or in surface lots behind buildings or on one or both sides. All parking structures shall require approval of an Alternative Development Plan. The intent of such approval is to ensure that the proposed architectural elevation is appropriate for the character of the area B. Building Materials. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 13 of 26 1. Windows shall be provided with trim. Windows shall not be flush with exterior wall treatment. Windows shall be provided with an architectural surround at the ~ am . 2. Fronts and street sides of buildings visible from the public right of way shall be 100% masonry excluding dormers, gables, porches, windows, doors, and trim. 3. Glass. Use of glass for displays and to allow visual access to interior space is permitted. Buildings may not incorporate glass for more than 70% of the building s in. 4. Metal roofs are permitted provided that they are of architectural quality. 5. Buildings shall include changes in relief such as columns, cornices, bases, fenestration, and fluted masonry, for at least 15% of the exterior wall area. C. Streetscape. 1. Hardscape (paving material) shall be utilized to designate "people" arrears. Simple materials could be pavers, scored and colored concrete, grasscrete, or a combination of the above. 2. Buildings shall be setback not more than 15 feet from the right of way unless the area is used for pedestrian activities such as a plaza or outside eating area. 3. Outdoor storage areas shall be screened from view from adj acent public rights of way. Loading facilities shall be screened and buffered when adjacent to residentially zoned land and public streets. 4. Outdoor storage areas shall not be located between the building and the street. 5. Loading docks are not permitted to be visible from the street, and may not be accessed directly from the street. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 14 of 26 Big Box Regulations Development involving a gross floor area in excess of 40,000 square feet shall comply with the basic site design standards and conform to the following standards. Building design shall contribute to the uniqueness of the development with predominant materials, elements, features, color range and activity areas tailored specifically to the site and its context. In the case of a multiple building development, each individual building shall include predominant characteristics shared by all buildings in the development so that the development forms a cohesive place within the zone district or community. A standardized prototype design shall be modified as necessary to comply with the requirements of this subsection. Developments involving a gross floor area in excess of 40,000 square feet of a single user shall comply with the following standards: A. Orientation: 1. Architectural features on building facades that are visible from Loop 288, Locust, and/or Gamer/Long Roads (excluding facades facing residential property that are screened by an eight-foot masonry wall and facades facing the side or rear of property zoned and used for commercial purposes or industrial purposes) shall provide all of the following design features: a. Facade walls shall not have an uninterrupted length in excess of one hundred feet (110). b. Facades to provide the following at intervals no greater than one hundred feet (100' ) excluding elements provided in Item d (Entryways) below: (1) Color change, texture change, and material changes within the walls. (2) A change in wall plane no less than 12" in depth extending a length of a minimum of twenty (20'). c. Top of the walls shall have overhanging eaves or horizontal elements. Extending no less than three (3) feet past the supporting walls, or sloped roof element, or cornice expressions or coping detail or minimum twelve inches (12") tall. d. Facades shall also provide at least one of the following: (1) Wall plane projections or recesses having a depth of at least 3% of the length of the facade and extending at least 20% of the length of the facade, not to exceed one hundred feet (100' ). (2) Pilasters projecting from the plan of the wall by a minimum of sixteen inches (16"). The use of pilasters to interrupt horizontal patterns such as accent banding is encourage . (3) Canopies, awnings, or porticos projecting a minimum of six feet (6') from the plane of the primary facade walls. (4) Repetitive orientation including decorative applied features such as wall-mounted light fixtures or applied materials. Repetitive ornamentation shall be located with a maximum spacing of fifty feet (50'). Revised: 5/30/2007 Hills of Denton Site Design Standards Page 15 of 26 (5) Faux window/framed elements. e. Entryways. Each large retail establishment on a site shall have clearly defined, highly visible customer entrances. Stone is required to be used as a maj or portion of a wall material at each customer entrance. f. The buildings shall have design elements that emulate the Hills of Denton signature feature. This includes building materials and architecturally compatible light fixtures. These elements should occur at entryways 2. Architectural features on building facades that are facing residential property and facades facing the side or rear or property zoned and used for commercial purposes or industrial purposes should have the following elements: a. A pattern that includes all of the following elements at intervals of no more than one hundred (100') feet, horizontally. The following pattern is also to occur vertically at least once within the height of the building, above ten feet (10') height: (1) Color change, texture change, and a change in plane, no less than 2' 8" in width, such as an offset, reveal or projecting pilaster with a stepped capital or coping. b. Variation in the top of the wall of a minimum two feet (2') change in height at maximum of two hundred feet (200') intervals. Peaks, arches, or other expressions of front wall form are encouraged and should be used. c. Top of the wall to have a cornice or coping detail a minimum of twelve inches (12") tall. 3. Sidewalk display and cart storage. Areas for customer loading or merchandise shall be clearly delineated and shall not be located in front of any customer entrances, exit door(s) or within fifteen feet (15') on either side of the door(s). 4. Permanent outdoor display, sales and storage. Merchandise may be stored or displayed for sale to customers on the front or side of the building in accordance with this paragraph. a. The total square footage of all permanent outdoor storage, display and sales areas shall be limited to 10% of the footprint of the building, but in no event exceed 20,000 square feet, except for home improvement use, which may not exceed 45,000 square feet of outdoor storage and the 10% footprint restriction does not apply.. b. Permanent outdoor storage, display and sales shall be contiguous to the building and shall not be permitted within seventy-five (75') feet of residential property. c. The permanent storage, display and sales area shall be enclosed by a minimum eight- foot (8') wall of columns minimum two inches (2") wide, of like appearance to the building with wrought iron or tubular steel fencing between, and topped by wrought iron or tubular steel fencing. No merchandise other then trees shall be visible above the wall or fence. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 16 of 26 d. Seasonal outdoor display will be allowed. Size will be limited to 11,000 square feet maximum. Dates for outdoor display will be year round. Merchandise may not exceed ten feet (10') in height except for trees. 5. Rear Storage. Bulk merchandise may be stored behind the building. The sides and back of the storage area shall be screened with a chain link fence covered with a windscreen, except for any side or back that is separated from a residential property by an eight-foot masonry wall and landscaped buffer yard, in which case additional screening is not required. Windscreen shall be maintained in good repair and free of tears. The rear storage area shall not be accessible to customers. Merchandise shall be stacked no higher than 25-feet or level with the top of the adjacent wall of the building, which ever is lower, and may not be stacked above the height of the chain link fence. 6. Wall and landscape bufferyard. An eight-foot masonry wall or brick, stone split block or concrete cast to simulate such materials shall be constructed along the common boundary line of the adjacent residential property, or as close as practicable in the event of intervening alleys, easements or drainage channels. If the large retail store property and residential property are separated by intervening property under separate ownership that is less than 20 feet wide, a wall shall be constructed along the property line of the large retail store facing the residential property 7. Pickup and Delivery. Outdoor storage, pickup, delivery, loading and unloading of merchandise, equipments or other items may occur within 100 feet of residential property. Loading docks must be located to the side or rear of the building unless the loading area is completely screened from the street, and loading docks shall be located more than 100 feet from residential property. Pavement may be located within one hundred feet (100') of residential property. 8. Trash Collection and Compaction. Trash collect and pickup may not occur within 100 feet of residential property and shall be screened from public view. 9. Mechanical equipment. No mechanical equipment may be located within 100 feet of residential property. Mechanical equipment shall be screened from public view. B. Building Material: 1. Fronts and street sides of buildings, excluding windows visible from the public right- of-way shall be non-reflective and shall be of wood, masonry, stone, concrete, decorative block, stucco, HDO board or other high quality material customarily used. For purposes of this subchapter non-reflective means material with exterior visible reflectance percentages less than 27 percent. Acceptable material and color palette: Limestone or varying colors, sizes and textures; Concrete -Architectural finish. Texture coated or textured and colored. Masonry -brick or decorative CMU. Porcelain Tile Galvanized metal panels or prefinished architectural metal panels of a neutral/earth tone color; Painted siding of a warm, neutral/earth tone color in accent areas only; Revised: 5/30/2007 Hills of Denton Site Design Standards Page 17 of 26 EIFS or stucco of a warm, neutral/earth tone color; Access color of a warm, neutral/earth tone range are required but should be in a limited manner Natural metals such as but not limited to zinc and copper; Natural wood, stained or painted; Roofing tile, metal shingles and panels, or slate in galvanized or neutral/earth tone color 2. The Use of ground mounted lighting or pedestrian level accent lighting is encouraged. C. Streetscape/Public Spaces: 1. One square foot of Plaza or Public Space shall be required for every 10 square feet of gross ground floor area. Plaza or Public Space maybe located anywhere within The Hills of Denton. 2. Plazas or public spaces shall incorporate at least 3 of the following 5 elements, which maybe located anywhere within The Hills of Denton.: a. Sitting space - at least one sitting space for each 250 square feet shall be included in the Plaza. Seating shall be a minimum of sixteen inches (16") in height and thirty inches (30") in width. Ledge benches shall have a minimum depth of thirty inches (30"). b. A mixture of areas that provide shade. c. Trees in proportion to the space at a minimum of 1 tree per 800 square feet. d. Water features or public art. e. Outdoor eating areas or foor vendors. f. Planting areas in the sidewalk are encouraged. Pots or above grade planters are allowed, minimum of 15 gallons. 3. Each freestanding, large-scale development building shall have a minimum of 100 square foot of seating area including permanent benches along the front sidewalk area. A minimum of one bike rack shall be included along the storefront. Bench and bike rack should be of an architecturally consistent design. D. Mechanical Equipment Screening: 1. All mechanical equipment shall be fully screened from view from public on site or public pedestrian spaces. Acceptable method for ground mounted equipment is evergreen shrubbery or metal or wood screen wall system. Acceptable method for roof equipment is parapet height extension or screening by slopped roof forms. Color or finish peer acceptable material palette. E. Accessory Use: 1. All accessory uses to a large scale development shall be architecrally compatible with the main structure. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 18 of 26 Parking Standards: Parking requirements shall comply with § 35.14 of the Denton Development Code with the following exceptions: Spaces Required. The number of parking spaces required shall be based on the following table: A. Residential Uses. 1. Single family dwellings. Two (2) spaces per dwelling unit; the spaces can not be tandem parking spaces. 2. Mixed density dwellings. a. Studio units or 1-bedroom units less than 500 sq. ft. 1.00 space/unit. b. 1-bedroom units 500 sq. ft. or larger 1.50 spaces/unit. c. 2-bedroom units 1.75 spaces/unit. d. 3-bedroom 2.00 spaces/unit. e. 4 bedroom and more 1.00 space/bedroom. f. Retirement complexes for seniors 55-years or greater 1.00 space/unit. 3. Amenity Center. Two (2) spaces peer one thousand (1,000) square feet of gross floor area. B. Commercial Uses. 1. Auto, boat or trailer sales, retail nurseries and other open-space uses. One (1) space per one thousand (1,000) square feet of the first ten thousand (10,000) square feet of gross land area; plus one (1) space per five thousand (5,000) square feet for the excess over ten thousand (10,000) square feet of gross land area; and one (1) per two (2) employees. 2. Bowling Alleys. Three (3) spaces per alley, plus additional spaces for auxiliary activities set forth in this section. 3. Business, general retail, person services. • General -one (1) space for two hundred (200) square feet of gross floor area. • Furniture and appliances -one (1) space per five hundred fifty (500) square feet of gross floor area. 4. Chapels and mortuaries. One (1) space per three (3) fixed seats in the main chapel. 5. Offices. Medical and dental -one (1) space per one hundred fifty (150) square feet of gross floor area. General -one (1) space per two hundred fifty (250) square feet of gross Revised: 5/30/2007 Hills of Denton Site Design Standards Page 19 of 26 floor area. 6. Restaurants, bars, ice cream parlors and similar uses. One (1) space per four (4) seats or one (1) space per 100 sq. ft. of gross floor (including outdoor serving areas) area up to 4,000 square feet, whichever is greater, plus one (1) space for each 80 square feet of gross floor area over 4,000 square feet. A minimum of three (3) spaces is required. 7. Skating rinks. One (1) space per one-hundred (100) sq. ft. of gross building area. 8. Theaters, auditoriums, stadiums, gymnasiums and similar uses. One (1) space per three (3) seats or one (1) space for each 3 5 square feet of gross floor area where there are no fxed seats. 9. Hotels and motels. One (1) space for each guest room, plus one (1) space for the owner or manager. Any convention facilities, restaurants, and other facilities shall be computed for their individual parking demand. 10. Stables. One (1) space for each five (5) horses kept on the premises. 1 1. Coin Operated Laundry. One (1) space for each three (3) washing machines. C. Industrial Uses. 1. Industrial uses, except warehousing. One (1) space per five hundred (500) square feet of gross floor area or for each two (2) employees on the largest shift, whichever is greater. 2. Warehousing (used exclusively for storage). One (1) space per one thousand (1,000) square feet of gross floor area or for each two (2) employees, whichever is greater. 3. Warehousing (not used exclusively for storage). One (1) space per five hundred (500) square feet of gross floor area, plus one (1) space per two-hundred fifty (250) square feet of office or sales area. 4. Public utilities (gas, water, telephone, etc.), not including business offices. One (1) space per two (2) employees on the largest shift; a minimum of two (2) spaces is require . D. Institutional and Public Uses. l . Day care facilities having 13 or more children/adults. Two (2) spaces per three (3) employees plus 1 loading space for every 8 children; a minimum of two (2) spaces is require . 2. Churches, temples and other places of assembly not specified elsewhere. One (1) space per three (3) seats within the main auditorium or one (1) space for every thirty-five (35) square feet of seating area within the main auditorium where there are no fixed seats; eighteen (18) lineal inches of bench shall be considered a fixed seat. 3. Golf courses, ~ Regulation Course -Eight (8) spaces per hole, plus additional spaces for auxiliary uses on t e site. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 20 of 26 Driving Range -One (1) space per tee, plus additional spaces for auxiliary uses on t e Slte. Miniature golf courses -Three (3) spaces per hole, plus additional spaces for auxiliary uses on the site. 4. Hospitals. One and three quarters (1.75) spaces per patient bed. 5. Nursing and convalescent homes. One (1) space per four (4) patient beds. 6. Rest homes, homes for the aged, or assisted living. One (1) space per four (4) patient beds or one (1) space per apartment unit. 7. Schools, elementary and junior high. One and one-half (1 1/2) spaces per classroom, or the requirements for public assembly areas as set forth herein, whichever is greater. 8. High schools. One (1) space for each member of the faculty and each employee, plus one (1) space for each six (6) full-time student capacity, or the requirements for public assembly as set forth herein, whichever is greater. 9. Colleges, universities and trade schools. One and one-half (1 1/2) spaces per classroom, plus one (1) space per three (3) students the school is designed to accommodate, plus requirements for on-campus student housing. E. Unspecified Uses. Where parking requirements for any use are not specifically defined in this section, such requirements shall be determined by the Director of Planning and Development based upon the most comparable use specified herein, and other available data. F. Maximum Allowable Number of Spaces. Any spaces over the required number of spaces shall be mitigated per the Access Parking and Circulation Requirements of this document. Spaces provided on-street, or within the building footprint of structures, such as in rooftop parking, or under-structure parking, or in multi-level parking above or below surface lots, shall not apply towards the maximum number of allowable spaces. Credit for On-street Parking. The amount of off street parking required shall be reduced by the following credit provided for on-street parking: one off street parking space credit for every one on-street space. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 21 of 26 Signage: Signage standards and procedures shall comply with § 35.15 of the Denton Development Code with the following exceptions: § 35.15.17.5 of the Denton Development Code shall be amended to include the following graphic exception for effective area of signs within SF, TH and MF districts. ........................................................................................... ............................................................................................ ........................................................................................... ............................................................................................ ........................................................................................... .................................. ......................................... .. ................................. ..................................... . ., :; ~~ .~ .~. r. u i ........................... ............... .......................................... ............................ ................ ........................................... •~. ~• .~. ~:~.~ ,EXCLUDED FROM Signage on Perimeter Fencing & Entry Monuments Revised: 5/30/2007 Hills of Denton Site Design Standards Page 22 of 26 EFFECTIVE AREA Subdivision Standards and Procedures: Subdivision standards and procedures shall comply with § 35.16 of the Denton Development Code with the following exceptions: 35.16.10 General Development Plan. F. Expiration of General Development Plans. A general development plan shall become null and void sixty (60) months from the date of approval by the Commission, unless a preliminary plat is approved by the Commission for all or part of the land subject to the general development plan within that time. The approved preliminary plat will supercede the general development plan to the extent of the land covered by the preliminary plat and shall automatically extend approval of any remaining portion of the general development plan for sixty (60) months from the date of approval of the preliminary plat. G. Extension of General Development Plan. The Commission may extend a general development plan or any phase thereof for a period not to exceed sixty (60) months on the written request of the applicant. The request must be considered by the Commission before the general development plan or phase expires and must document the reasons for the extension. In determining whether to grant a request, the commission shall take into account the reasons for the requested extension, the ability of the applicant to comply with any conditions attached to the original approval, whether extension is likely to result in timely completion of the project, and the extent to which any newly adopted regulations should be applied to the proposed development. In granting an extension, the Commission may impose conditions they deem appropriate to assure that the land will be developed in a timely fashion and that the public interest is served, including compliance with one or more new adopted development standards. More than one extension may be granted. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 23 of 26 35.16.11 Preliminary Plats. E. Expiration of Preliminary Plat. Except for preliminary plats filed prior to the effective date of this Subchapter, a preliminary plat shall become null and void sixty (60) months from the date of approval by the Commission, unless a final plat is filed and approved for all or part of the preliminary plat within that time.. Within sixty (60) months after approval of the final plat for the first phase of the development, a complete application for a final plat must be approved for the next phase of the development, continuing with each successive phase, until final plats have been approved for all of the land subject to the original preliminary plat in accordance with this section. If the applicant fails to receive approval for a final plat for any phase of the development within the prescribed period, or within any extension granted pursuant to section 3 5.16.11 F, the original preliminary plat shall expire for that phase and for all other phases for which a final plat has not been approved. If an approved final plat expires, the preliminary plat for that phase shall also expire F. Extension of Preliminary Plat. The Commission may extend a preliminary plat or any phase thereof for a period not to exceed twenty-four (24) months on the written request of the applicant. The request must be considered by the Commission before the preliminary plat or phase expires and must document the reasons for the extension. In determining whether to grant a request, the commission shall take into account the reasons for the requested extension, the ability of the applicant to comply with any conditions attached to the original approval, whether extension is likely to result in timely completion of the project, and the extent to which any newly adopted regulations should be applied to the proposed development. In granting an extension, the commission may impose such conditions as are needed to assure that the land will be developed in a timely fashion and that the public interest is served, including compliance with one or more new adopted development standards. More than one extension may be granted. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 24 of 26 Subdivision standards and procedures shall comply with § 35.20 of the Denton Development Code with the following exceptions 2. Through Lots: The definition of Double fronted lots (which are the same as Through Lots) states that they are prohibited, however, § 35.20.2.G.3 states that Through Lots are permitted where essential to provide separation of residential development from major traffic arteries. § 20.2.G.3 also states that the minimum lot depth for double fronted lost shall be 110' . Proposed Standard: Through Lots are permitted where essential to provide separation of residential development from major traffic arteries providing that the lot is a minimum of 100 feet. Revised: 5/30/2007 Hills of Denton Site Design Standards Page 25 of 26 Environmentally Sensitive Areas. (REPLACES ~35.17.8A) Riparian Buffer and Water Related Habitat Development Standards. The following uses and activities are allowed in the Riparian Buffer and Water Related Habitats and are in addition to the restrictions for development in this Subchapter, Site Disturbance and shall be delineated on the completed application for Environmentally Sensitive Areas review: A. Permitted Uses and Activities. The following uses and activities are allowed in Riparian Buffer and Water Related Habitats and shall be delineated on the completed application for Environmentally Sensitive Areas review: 1. Up to 10% of the area may be disturbed for private yard structures including but not limited to: gardens, yards, trails, and clearings, but which are no closer than 25 feet from the stream bank or riparian buffer. No disturbance is permitted in delineated wetlands. 2. Repair, replacement or improvement of utility facilities where: a. The disturbed portion of the Environmentally Sensitive Area is restored; and, b. Non-native vegetation is removed from the Environmentally Sensitive Area and replaced with vegetation from the City Native Plant List. 3. Additions, alterations, rehabilitation, or replacement of existing structures that do not increase the existing structural footprint in the Riparian Area or Water Related Habitat Area where the disturbed portion of the area is restored using native vegetative cover. 4. Stream, wetland, riparian and upland enhancement or restoration projects. 5. Agricultural activity, including buildings and structures is permitted outside of the environmentally sensitive areas, unless otherwise permitted through NWP 40, Agricultural Activities or any other permit as required by FEMA or Section 404 or as allowed in this Subchapter. 6. Routine repair and maintenance of existing structures, roadways, driveways, utility facilities, accessory uses and other development. 7. Measures to remove or abate nuisances, or any other violation of State statute, administrative rule, or City Code of Ordinances. 8. Any action taken by the City in an emergency to mitigate an existing or potential hazard. 9. Gas well drilling and production within riparian buffers and water related habitats shall comply with Subchapter 3 5.22 Gas Well Drilling and Production. 10. Up to 10% of the area may be disturbed for trails, and clearings, but which are no closer than 25 feet from the stream bank. No disturbance is permitted in delineated wetlands Revised: 5/30/2007 Hills of Denton Site Design Standards Page 26 of 26 HILLS OF DENTON Exh;b~t6 E i ti C diti °~° x ng s on ons 2,120.6 TOTAL ACRES ~~. f City Limits wr Arron MAv Pro(ect Boundary ~ , II - ~~---- Approx. limits of (unstudied( 100 year Bood plairy 134f ~-puss w~.SYtai9Lp .~ Poixls r _ -- ((''~~ Existing 2TOOt contour ~:J Existing Trees Stands (Scattered) ~ Exisuny Structures (to be removed) d ESA W ater Related Habitat ~j '~~~'` ~ `~ .~ Ns.-gpee m.me eilnYi9 ~ ~ / 71 "~ `~ ~ ~ '- j ~ F ~ ' ljrT C % ESA Stream Buffers .. '` _ _ 3 Il A poll p i i~.-.: :\ ~f '4 ~ ~~ ` ~ _ ~~ ~.., . _, .. ..? r4. ... ~ ~~ ~ y / ~ ` ~` ~~` ~ '.. v- t.. ~ ~ ~ _ _. i ~ ,, G ._ 1 ~. ~zs -n ^. J ~ { i li'i f r ~ ' ~"., I` f 1tr i~ -. r~ ,~i ~ 3 ~f :?'~1 ~ ~ ~ ~', ~1 ice: ^< 5r Yz .r 'L h ~ ~ r ,.. ~q. fl '', :' r .. y{fi~~ ~; ~ „y ' , ,.. ,~ ti ~ .~.f {s' ~ ~ r 1. k T• ~ i -i a,/. .~~~ - ' .- ~ ~ ~ ' f JS t" 1 ,y I .: _ n r ;~~ ~• \, ,, t it /~ J ~ i ~ ^r Exhibit 7 IJ:1:1:\11 -RPS _ ~ DR~I RC DR3 L ~ NR.I ,~ ~~, ~.~A. CCN x NR2 m DLG HR-1 x~~ CF1 G NRJ _ CJA E NRb RCR-t NRiALLt2 t„rv; PCP 2 ® NPFnJ RCGN EXHIBIT 7 RCGD EGL DEL, Existing Zoning Map ILE -'^ IGG PD LtF-~ 0 FBet D soo Tzoo z.oo ETJ EaisHng Zoning Map EXHIBIT 8 Proposed Zoning Map PROJECT 6OUNDARY 1.1'ia:no ® ftO5 DR I RC i`,'_'1 DR NR 2 DCG NR-1 y^~~ CMG NF-f - OdE NR6 RCR.I NR1.1LLi1 ~~ RCP.-3 ® NFLW ~ RCGN HCGD ECC E,. Proposed Zoning Map ICE iCG GD ®!}F-I 0 Feet P 0 YO 1200 2a00 EL HILLS OF DENTON EXn~b~c9 Phasing Plan 2,120.6 TOTAL ACRES ^ ffiasel (1J1+,--arses) ^ Phase II (Sli+~-arses) ^ Phu<e III (!31 +.- an~es) ^ Phase ld Nl9+,'-aa'exl ^ Phase \'UJD+:-aarev) ^ Phase A7 (1?8 +/- arerx) ^ Phase ~-II f31i+J-uses) -~-~- Proposed ROR' Phase I: • Anticipated Cm:shnrtimt s1.vt Aate 9pruts'_OOS, • dnfieipated Build Onf 2 to 3 'ems. Fuhve Phrase? to be bnih neon cumpletiou ofpre~ious phase in auliripnted J fa ~ cev' inrremen L_Ll I~, ~~ ~~~, l! I ~~ I~' ~ ,~ ~ ~~ i ~~I .. \ III / \\, .... / II .., ~ , /// ~. \'I \71 II II r I I II ~.. ~: ~ '~ ~ ~. ~.~-~' ~' . ~:`~ I V .III -III - I\' LOOP 288 ~~ 2006 1 i mil i EXHIBIT 10 Future Land Use Map Location Map 0 v Frei o ~ ,?~ z<ro EXHIBIT 11 Notification Information 1500 FOOT BUFFER) ~~~~.~--• n L'OCATIQN,*OF; P,ROP~R7Y OWNER.IN OPPPO$ITION GANZER ~ CROJECT BOUNDARY m w z z 0 m (200 FOOT BUFFER; ~ ~ ~~ w i . =LOOP388- ~ - .... L'OOP388 .- == U O -- eC~"a ~LL BEACL~ SOL DEL Public Notification Date: 4/30/07 200' Legal Notces* sent via Certified MaIl: 24 500' Courtesy Notices sent via Regular Mail: 20 Number of responses to 200' Legal Notice • In Opposition: 1 • In Favor: 0 • Neutral: 0 Percent of ]and within 200' in opposition: Lees than 5 Notification Map O 0 Feal ° soo tz°o za°o Page I7 1 COMII~I~SION~R TR4.NGE: The next ite~xt mill ~ ~ be item No. 4C, barn 4B, which is in the Agenda has been 2 3 withdrawn. 50 item No. 4C is the rezoning of ~ 4 approximately 2,12 acres from. Neighborhood Residentia~I ~, 4 ~ neighborhood Residential ~, Neighborhood Residential 4, ~ ~ ~ ~eighboi:hood Residential 6, ~~Mr_r•~~, N~MF.1 commercial Mixed 6 7 ~Jse General and Planned Development 1 ~0 Districts into a "7 8 new Denton Master Plan for the bills of Denton. And Mr. 8 ~ Menguita. ~ l ~ , n~Is~r~uFT~; ~rhanl~ you, Mr. Chair, l ~ 11 members of the Commission. ~ l l ~ COMMISSF~I~[ER STRANGE; gold on, Mr, 12 7 ~ Menguita, I~id somebody lose their Blackb~ry~ ~t was 13 14 found downstaixs in one of the chairs. 1 just bought one l4 l5 just like it so l know you'd like t~ have that back. l5 l ~ Nix. Menguita; 1 ~ ~ MR. MENGUI3'A: 'hank you, Mr. C}~ai~', ~ ? l members of the Conmtission, Cn October 17 of 2~0~, the Z S t9 City Council adopted Ordinate l~o~ 206-Q3 amending 19 2~ po~~s of ~ubchapteY ~~r7 Of the Denton Development Code 2~ ~ 1 to pertain to Master flan Development. ~ 1 2~ ~ The Mastex Plan Development Ordinance Z~ ~~ allows for the development of large Comprehensive Plan ~3 24 developments that conforms wiith and enhances the goals and 24 ~5 policies contained within the Denton Plan. On April ~, ~~ ~~~~ ~ s 1 ~4~?, City Council adopted an ordinance annexing portions 1 2 of the dills of Denton development that's currently shown ~ ~ ~ here in red, The propose bills of Denton development is ~ 4 generahy located Wiest of Locust Street, north ofLoop ~ ~5 X88, east of 1~onnie Brae and south of Mi1a~m Road. ~ 6 The future plan land use designation for ~ 7 this are is t~ral areas and neighborhood centers and a 7 S community mixed use center. On March ~7, ~~~7, this year, 8 9 City Council adopted an ardina~ICO that exempted faster ~ 1 ~ Plans as they're proposed from requirements o#' processing l0 l Z a Comprehensive Plan, so, therefore, a Comp Plan would not 1 l Z 2 be required #~or this coning change. l ~ Z 3 Last year in 2~~G, the Mobility Plan Was l ~ l4 also amended. to incorporate the proposed roadways. As you 14 1 ~ can see here in this alignment red, this is the new Bonnie 15 l ~ Brae alignment, which is a primary arterial. This is the 1 ~ 17 extension of Cramer Road, again, pz~mary arterial and then 1? 1 S an introduction of a road, secondary arterial road, that l 8 I9 transects east to west. 19 ~~ This is the current zoning as Mr. Chair had ~0 ~~l mentioned., number of zoning districts that currently 2l ~~ exist. The areas in green are RIB-5 which is the initial 2~ ~~ zordng given to an area that's been recently annexed, ~3 2~ again, back in April Ord of 20~?, these areas in ~ ~4 25 were annexed into City. 2 Page ~ 9 This just basically illustrates the boundary and the location the Mills of Denton ~-the ~xoposed Hills of Denton Master Plan Community. The applicant has submit, a coning plan and I'll real briefly describe to you, the development will consist of approximately ~1,42~ acres of Single Family Development, approximately 146 acres of town home development, approximately l l0 acres of multi#family development, approximately 1 S3 acres of commercial, 93 acres of DfficelCo~r~mercial development, approximately 57 acres of Town Center Commercial and approximately l ~4 Town Center Residential Development. The Master Plan Community also . includes amenities such as cozx~idors, trails, project entries, ponds, an amenity center, comunity centers and a hike and bike trail. This' exhibit here illustrates the proposed density distribution for single fanvly, the area closer to the Town Center is proposed at 5.~ units per acre, this area is proposed to be 4.~ units per acre. And then along the northern portion of the development it is proposed to be three units per acre. Pursuant to Subchapter 3~.7.1~ the Development --Denton Development Code, the dills of Denton Master Planned Community must comply with the Code except where modifications are proposed. The Master Plan ~~~ ~~ honing doctu~ent that the applicant has submitted has identified these proposed zoning districts. Real briefly, dingle Family Residential, Town homes, Multi-family Residential, Commercial, Office, Town Center Commercial, and Town Center Residential. AXong wig the zoning doc~unent, they've also listed their ~ninimun~ lot areas, minimum width, ~ninimurn depth, front yard setbacks, side minimum setbacks between dwellings and so on. 1'd just like to point out the highlighted areas in red, identify the maxiu~um lot area fora Single Family at 5,500, And then the minimum residential unit size at 1,80 square feet. They're also proposing the provisions to allow cluster-type development. with this provision the maximum number of single 1'ainily units detached. within the zoning district, dingle Family honing District may not exceed S?~8 units. Again, with the coning document they have provided a development threshold and these thresholds list the maximum. number of single farzaily units, average single family density, ~r~aximum, number of family units. l'd like to point out that in the items highlighted in red, again, the maximum number of single family uses that includes detached and attached ;s 7,44. Maximum multi-family units 1S ~,~~~. I'd also like to mention that a minimum ~ ,~n~~~r~~rt~ oc, ~v~~l~vur 1~l~ULA;.~.t ,~-1-~N~i 1V.~A]~ ~'1'H, ~~07 tae ~~ -~P~e 20 .:1 C`~nn r~~n c~l't Page ~ X 1 of 2,OQ~ single family houses shall be constr~.cted, ~ permitted prier to any development of a multz-family unit. ~ The fallowing is a list of m.odiflcations, ~ areas that -- yes. ~ car~~~toN EAGLETON; sorry to interrupt. 6 13ut just go lack a couple of pages, you mentioned a 7 maxi~tum lot area? . . ~EN~~mr~: sight. ~ CI~NiMIS~IDNER EAC~~~TON: J~.15t t0 ~~ sure for I ~ the record, you said maximum. Z think you meant rr~inimuzn; 11 is that correct? ~ ~ MR. MENCxL]~TA; Mini~ium R- Ism Sorry, 13 minimum. 14 ~o~~ts~oN ~t,ETON: okay. I just 1 ~ wanted to make sure, ~ ~ II~R, MENCrIIIT~; Thank ~~~. The following is l ~ a list of the modificatians, These are just su~r~.nlaries of 18 what they are proposing to deviate from the I~entan l9 Development Code, Real briefly, creadtag a -- they're ~~ proposing as part of ~e zoning document, creating nee ~I landscape and tree canopy requirements, modifying access, 22 parking and circulation, permitting parking strictures 23 with an App, alternative Development Plan, petting ~~ parking in (rant in ail districts except for Town Center 2~~ Commercial and Town Center Residential, modifying site 1 5 7 S l~ II ~~ 13 l~ I5 ~~ 17 t8 l~ 2~ 21 22 2 24 25 Page 23 that the development propaed furthers the goals of the Dentin Plan which staff feels that they have. In the case of tk~e proposed residential development, that the devel~prr~ent ~ril1 promote campatible buildings and uses that it will be compatible with the character of the surrounding area.. The current proposal we feel is consistent, that the provisions for public facilities such as schoals, ~'r'xe protection, law enforcement, water, waste water streets, public services and parks are adjacent to serve the anticipated population within the n~~c r~istrict. The Eniueoring Depar~ient as well as Legal have been in coordination as far as develapir~g a developer's agreement that addresses some o#'these concerns ar these issues. And, also, the request at the tx~ne of platting will address some of the location of the schools and fire and law enforcement facilities. And lastly, in case of the praposed Carz~m~cial Develapznent, Industrial, Institutional Recreational and nonresidential uses or mixed uses, that such development wi11 be appropriate in areas located in overall planning for the purpose intended. And we feel that the location of the Cornanereial, the Multi-Paznily anal die Town Center as well as the dingle Family uses are cornpatihle and also promote die ~~ are located in a location that is appropriate for those type of uses. Page ~~ Page ~4 1 development require~rients standards for dingle Family, I And Itd like ~ mention that there were ~ Multi-Family and non-residential, creating site 2 three public notices, res oases sent hack to tie lan ' p ~ p n~ng development standards for Town Center Mults-far~ly, Town ~ department, one 1n favors one neutral 8nd one Tn 4 Center non-residential, and ll~ixed Use building including 4 opposition. The locatio~a of that sin that wa i p~' s n ~ big boxes. 5 opposition is -~ address is 780 forth Lacust within the ~ In addttian, they're proposing to ~rodify 6 City of Dentin. That concludes my presentation, I'd be 7 existing parking space requirements, adding parking space 7 happy to answer any questions. S requirements for ne~u Ian,d uses that they're praposing, $ C~MMtI4NER TRANCrE: Any ue5tions of creating ~ graphic exception far effective areas Qf s1~iS, ~ Staff? Thank you, '. ll~errgulta. 1 ~ modifying expiration time far general development plans 10 M~. ~~N~tItT~: oka . Y 11 and prelirr~inazy plats, per~xtitting through lots and within l 1 CQMMIS~ONER TRANCrE; I5 the a licant pP 12 the ESA permitting up to ten percent of an area that may 12 here and do they wish to speak? we'll now o en the ublic p p I3 be disturbed for trails and clearing but no closer than 25 l3 hearing. l ~ feet Df ~e Stream bank, 1 ~ NIR. R~tCHHART: Thank you, Larry l I'd like to mention that the applicant has 15 Reichhart, ~prinbrook Planning Crroup, 24~~5 Mustan Drive g , l6 met wi~i the nearby owners and we had a neig~borbood I G Grapevine, Texas. ~o~te of this will be redundant so I'll 17 meeting on Thursday, May ord. Approximately 25 prope~y 17 try to get tbrougl~ it pretty quick, you've seen the I S ovvrters were in attendance. And the meeting -- the 1 S location. Locust, Leap 288, I-~~. Qur exi5tin g l~ concerns at that meeting were the potential impact to the l9 conditions, we da have F~ water-related. habitat, ponds, ~~ proposed road along Locust as well as the provisions of 2~ flood plain, appz~oxin~ately 3~4 acres, stream buffers. 21 utility services such as water and sewer far that 2I They're scathed trees on the praperty. Dui La~.d Use 22 develapment. 22 Plan you've seen. Rory has presented this. r popped out ~"~ L~~~.lyy pursuant ~ lll}~l~~pter ~~.~ Of t17e 23 the flood plain a little bit darker, SO 1t 0 ~ Quit ~ ~4 .Master Plan zoning, the Following findings shall be in 2~ line bit more for yau on the property. 25 consideration of this coning request. The first one is 25 I~ere's our land use lan. 1427 a r p c es of Ufi A 1-T'AT!'x v 7n~r~~r~ n.r*~r,r,rr ~ ,~ ~ .~-.~,~„~ ~~,. ~~ ~~, ~,~~.~ u~ ~v~rl~r~ ~ruruL~"~1t ~ 11tV~ 1V,~A Y ~1~k1, ~UU7 ~~~ ~ ~ - ~~ ~~ onden Iti Page ~~ . Page 27 1 Ingle Farn~ly at four url~ts per acre. That's #~e yellow, l and we might have talked about that, the x,000 aa~d ~,~~~ ~ Our town homes are in the tannish colors. ll~t~lti-family is ~ square foot, yealx, I went through that once before. I'm 3 the orange. Com~nerc~al i5 tl~ red, as you've seen. i dad 3 sorry. The 1Vlultt-family standards are very solar to the 4 want to point out ~h~t our Town dome areas could also be ~ existing Code. ~u~ isn't required as this is part of the ~ developed as dingle Family. And. our 1Vlulti-family areas ~ 5 has Planned Corrnraunity. The proximity uirement had 6 ~ could be developed as sonnething other than multi-families. 6 been removed but the increased the masonry requirement. e 7 tie discussed earlier, as Commercial or Office Development. 7 added an 80 percent masonry.require~aent to all multi- S Our conceptual density plan, and we went S fancily structures. over this earher, trying to identify how we an1g~]t ~ Nonresidential uali as a aln S1TTLilar to ~ ~ ~ l ~ distribute Boone of the Single Family, but, overall, again, 1 ~ existing Codes, but we allowed the buildings to be 1 I it would be four units per acre for the single family. I I oriented towards the street andlor parking areas. And if 12 Plaasing plan, again, we're looking to start in this I ~ you re~.ember, our parking areas have -- if they _- if you l ~ quadrant right here identified by the brighter yellow. l 3 park between the buildiza and the street there's g l4 i fur permitted uses eve have identified I4 increased landscaping and open space requirements that you 15 different nomenclature for our uses, but they have been l ~ have and buffering requirements, but there's l ~~ ercent p l6 mirrored afar existing uses in the Denton Code, and most 16 masonry requirements for all nonresidential developments. 1? of our nomenclature has been taken after the Denton Code. l7 Additional standards as Ron had identified, l ~ Our development thresholds and we've talked 18 the big boy standards are street standards, parking l ~ about this, and this is -- should be familiar to what you 19 lot designs, as I said, parking standards. Rory went over 20 have in your backup with the greets, and the blues and 2~ than a little bit, the signage on an erahy sign into a ~ I ever~thrng that you've .seen before, and Z've left ~t the 21 subdlvl~lOn. ff it's on a stone Dr beck v~ail the stone 22 same, but our maxi~raum number of single family units ~~ or brick wall doesntt count as part of the sign, just the 23 including the Town Ilorne is 7,~~4 units and, again, x,040 ~3 sign. Trails are permitted ire ~s~ areas. e do have ~~ dingle Family waits would be permitted. And, you know, Z4 school location criteria that we will follow. That is a ~5 we'd permit one, and vae didn't want to gait u~atil it was ~~ brief summary again. we've been through this a ~aumber ofi Page ~6 Page 2 t actually built and'have to be built before the could start 1 tunes and 1'd be happy to answer any questions that yo~t 2 multi-family. That's why it says permitted. 2 may have. ~ Our general regulations, again, we've been 3 COMM~~StONER STRANGE: Any questions of the ~ through these minimum lot a~as, maxunum residential unit 4 applicant? Thank you,1~1r. Reichhart. 5 Sizes. Ron did a good job presenting these. Here'S our ~ MR. REX~HHART: You're welcome. ~ landscape and tree canopy. That's because our dingle eoM[M~~o~v~R STRANGE; we do have one card 7 Family Town Nome Districts changed. e had to create our 7 of a person who wishes to speak on this item. H.~. l~ own landscape and tree canopy and table. $ Shepard. ff you'll crn~e forward and give us your name and 9 dingle Family quality, 1,800 square foot 9 address. I4 minimum lot size. If it's an active adult ~tirement, I0 ' MR. SHEPARD: F met that guy the Other I I that could go down to I,~00 square feet, we taped. about. l I night, PViy name is Shepard. I live across the road from 12 At least ten percent of the houses would be a minimum 12 this development, 8~ l 6 North Locust Street, y property l3 ~,0Q0 square feet and another ten percent would be a l3 is on either side of 1Vlilam Creek. I'm voting no for this I4 minimum ~,~~~ square feet. And if you rem~nber 14 right now because the guy wouldn't tell us anything. Oh, l5 additionally with those, they require additional l S we can"t te11 you now, but give us the zoning and we'll 1 ~ architectural requirements, also. Town home minimum 1 ~ bald it and then you'll see what's going to happen, l? square footage is I;400 square feet which is a fairly good I? l want to know, A, what's going to happen l8 size unit ~'or a Town Dome. Additionally, with the square 18 to all of the flood water that's going to come cut of 1~ -~ Single Family, we have increased the architectural l9 these 70 some odd hundred homes because it's oin to cow g g 20 standards, such as the a~nasonry. They all have two-car ~0 right past ~y house, where tkie sewer pipe's going to go. ~I garages, roof pitch, and there's a number of o~aer -- I'au ~1 I believe that's going to come down Nlilam Creek either ~2 giving you the reduced version tonight, but there's a 2~ right behind my house or right across the creels from my 2~ nu~x~ber of architectural standards that have been ~3 house, tie haven't heard anything about that yet. Aaad 24 increased. 2~ what are we going ~o do v~ith all of the people on Locust ~~ AT J ~ ~ Additional minimum building sizes, also, 'Y7 7Tt Y lY fY ' rr w : ~.~ ....... ~~ Street? This is a two=lane hi wa , t~e're oi~ to hate y g g ~L~iV~~~l~ ~~N1N~ K~~r~LAl~ 1VI~~`~'~,~(]r M~~ ~~, ~~~ ~~~ - ~~ ~~ Co~dens~I~ Page ~9 Page 1 l to shop in Sanger because there's no way in hell we're 1 major arterial on the I1~obilit~ Plan and we recognise that ~ going ~ get into Denton when these people Dome in. ~ we will be participating in the construction of that with ~ 'When we get more details, then I'll 3 the develop~neut of this project. Again, the extent of 4 consider whether l want to vote for these guys or not. 4 that participation will be determined. as we go throe h our ~ But right now, they're going well, give us the zoning and 5 ~~ and the development of the property, ~ then we'll let you know later. That's essentially all of ~ o those are the answers to those ~ my concerns. e don't have enough answers yet. And I 7 questions. Thank you, 8 would also like t~ know if the City is Being to do S co~r~rsr~rr~~ ~~~: Thank you, Mr. anything about -- about the luway out there. T`hat's a ~ ~lelke. Staff, 1~ State -~ are vie going ~ have Locust a six lane or still a 1~ NIx. LoCKLEY; yes. I was also just going l l two-lane? And how are you going to get from Elm Street 11 to add to the gentleman's comments that I'd be more than 1 ~ where Elm, and Locust kind of become parallel all into ~ ~ happy -- we can z~eet with him to ilk about some of these l3 town? Because all of that traffic is going to be dumped l 3 engineering issues that he raises in terms of tie l4 right into that light. It's going to be a mess. Are we 1~ platging, drainage and transportation issues along Locust. I5 going to on this big sewer line, I ua~derstand that they 15 There are plans and provisions in place that the Ci is I were going to wild a sewer station, a second one on Clear l ~ currently reviewing that does address all of those 1 ~ Creek over by Sherman ]give ~- who's paging for that? Are 1? specific issues. I would also -~ I have a question of 1 S these guys going to pay for it ox are we going to do a ~ l S staff as well that deals with the density 'being proposed 1~ bond election? Is it going to come out of my pocket? I l9 on that site in terms of the number of units that are 20 can't see why I want ~ help these guys. I know the -- 2~ being proposed and how we can address some of the densi 21 file dev~lopnient is eonung. There's no way in hell I can 2l issues that are illus#~ated on the plan; but don't ~~ stop zt. But ~'d like ~ know more about 1~ before vie do ~~ necessarily IefleCt the numbers that are also Shown 1n the ~3 that. That's my piece: ~ ~3 plan as well in terms of a Creneral Develo meet plan heir p g Z4 CoI~MrSS~~NE~t STRANGE; Thank yDU for your ~4 included with this Submittal. ~5 comu~ents. That was the or~1y card on this item. Da we ~5 . MENG~'ITA: Let me see if l can find the . Page ~ ~ ~ ~~~ ~~ 1 have anyone else who wishes to speak? Okay. Does the ~ l exhibit. The proposed development sets a maximum dingle ~ appheant ~isb, to issue any rebuttal statements or have ~ F`anvly detach of S,"7~5. The applicant has submit€ed a 3 any comments regarding this item? ~ density distribution plan or map shown here that ~ MR. ZIE~,~,~: chalz~an and. Comrr~lssloners, my 4 ldentifles the areas where the denslt~J, again J,J units ~ name is Rod ~ielke with Tomlin investments, 465 Kelway 5 , per acre within this area here, ~.5 units per acre over 6 Circle in Addison..Tust respond telly quickly to the ~ here, and t~ units p~- acre within this area here. Per 7 gentleman's comments that was just up here. I conducted ~ discussion with the applicant, we're going to identify the ~ the publzc meeting and tried to address answers to that in S number of single #'aznily units here as well as the other ~ the meeting. He had three points, . One he was concerned 9 two areas .and hopefully, we'll come up with the total of to about flood wat~rs~and we tried~to explain that we will be to ~,?~$ to be consistent with what they're proposing. e ~ 1 doing a flood study as part of the development of the 1 ~ will have that exhibit -- the applicant will prepare those l~ property and we'll be compliant with all of the City of 12 numbers and those -- that exhibit that correlates those l3 Denton's rules and ordinances as far as controlling that 13 numbers for -~ for staff. 14 flood water to ensure that his property does not 1~ co~n~t~rar~ ~T4NC~E: Thank you, Mr. l S experience any additional flooding beyond what already 1 S IVlenguita, ~Ve will close the public hearing, I will again 1 ~ ~ exists • l ~ poYnt out for the audience that we have had multiple work I7 The sewer that he mentioned,, we are in, the 17 sessions as a Commission on this and been addressed by the 1 S process now, we have approved an agre~nent, I understand, l S developer and have had many occasions to visit about these l9 die City's taking it before the Public I.]tility Commission 19 issues. There's really three things that came out of a 2~ far' approval in the next couple of weeks, That addresses ~~ Work Session we had prior to tonight's meeting. And it 21 the alignment of the sewer, The City is working on that ~ 1 should be included in any motion that's made on this. ~~ alignment and we will be building that as part of our 2~ one, is that we do need a development plan map. The legal ~3 agreement for the City out of Our dollar's, That'd what 23 review has commenced but has a few items t~ be concluded 24 agreement will Say. And then ~n his comments about ~4 before ~t goes t~ the City Council. There ~s a ~~ Locust, we also -i Locust has always been identified as a ~~ development agreement that was alluded to that's being rL~.ty f~~tV C~ ~ LV IV~11V ~ .~.~[x~Jt.~l~ lll~.~'!'lI~(~ MAC 9TH, ~~~7 gage ~~ - Rage 3~ ~a~denIt Page 33 Page 35 1 worked out right nor between the applicant and the City. ~ ~ That will need to also be ~nal7~ed before it goes to the ~ 3 City Council. And we will be looking at some language ~ 4 regarding a phased review. ~o hose would be items that ~ 4 ~ we would want to include in any motion. Igo we have a ~ G oration on this item? I~r. Thibodeaux. 6 ~ CQMMISi[~l~ER ~'I~I~D~4; I would ~~ to ~ move approval of this item with the cond~tion5 that S 9 t}aere's a completed legal xeview that a development plan ~ I0 reap is included, that phasing plan rs 1ncl~.c~,ed and ~ 1 ~ 11 developer's agreement. And with those conditions, I ir~ove 1 I I ~ approval. I ~ I ~ co~r~~s~raN~R T~a~I~~: we have a mo~ori by 13 1 ~ Dr. Thibodeaux. Do we have a second? I4 I.5 C(~11~NIISS~4N~R ANl)~RSON: Second. 15 1 G ~OI~I~~SSIGhiER STRANGE; ~~ have ~ SeCOnd by 1 ~ 17 MS~ Anderson. Do we have any d~SCUSSIOn`? If not, please 17 . I8 vote. dote passes 7-~. I think it's c~~r in the motion I8 19 but I'll make it clear for the public record that those l9 2~ four. items that I~r, Thibodeaux alluded to and that I also ~~ ~ I .entioned will be included in the documentatioza prior to ~ 1 . 22 going to ~e City Council; ~2 23 ~ ~ 23 ~4 ~4 ~5 ~5 Page ~4 ~ Page 3~ 1 1 Z 2 ~ ~ ~ 4 4 5 5 7 7 . $ S ~ ~ 1~ l~ l~i 1~ I~ ~ 12 13 ~3 I4 I4 l5 15 1~ 16 1~ 17 18 1S I9 19 ~~ ~ 2~ ~~ 2I 22 ~2 23 ~3 24 24 ~ 25 PLANI~INi ~Nl~~i LAIC ~~~ ~~ 9~, ~0~7' ~ Page - Pa~~ ~~ AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT A07-0002 (Denton Municipal Electric Spencer Complex Annexation) Hold the second of two public hearings to consider the voluntary annexation and service plan for two sites. The first site is approximately 7.85 acres and the second site is approximately 1.54 acres, totaling approximately 9.39 acres. The sites to be annexed are generally located on the north side of Spencer Road between Woodrow Lane and Brinker Road (see Exhibit 1). The sites are within a tract of land legally described as Municipal Utility Addition, Lot 1, Block 2. BACKGROUND Applicant: City of Denton Denton, TX A voluntary annexation proceeding is being considered by the City of Denton for portion of the Denton Municipal Electric Spencer Complex property and associated right-of way. The ownership of the property is City of Denton. The subject sites are currently developed as the Denton Municipal Electric Utility Operation facility (see Exhibit 1). The proposed annexation is being initiated by Denton Municipal Electric. The following items summarize the proposed annexation and important actions taken: ^ On June 12, 2007, City Council held the first of two public hearings. ^ On April 27, 2007, staff received direction from the City Council to pursue voluntary annexation proceedings for two sites. The first site is approximately 7.85 acres and the second site is approximately 1.54 acres, totaling approximately 9.39 acres. The two sites are within a tract of land legally described as Municipal Utility Addition, Lot 1, Block 2. ^ The two sites proposed for annexation are located within City of Denton's Extra- territorial Jurisdiction (ETJ) and is not zoned. ^ The Comprehensive Plan identifies this area to be within an Employment Centers land use designation. ^ The annexation is scheduled for completion on September 1 1, 2007 (see Exhibit 2). 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." 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 subject site is located in Denton's ETJ Division 1. As such, development is subject to only the City's subdivision regulations and not zoning regulations. The subject sites are within a platted lot; however, any subsequent subdivision or reconfiguration of the subject sites will be subject to the City's subdivision regulations. Incorporation of this site into the City would not require additional properties. (1PTT(1N~ 1. Proceed with the annexation. 2. Amend the land area proposed for annexation. 3. Amend the Service Plan. 4. Discontinue annexation. RECOMMENDATION Staff recommends that the first public hearing for A07-0002 is held as scheduled, and pending comments received determine if additional information is needed. Staff recommends that the public hearings proceed as scheduled, finding that the need to manage and coordinate development in an orderly manner is a significant city objective that the City of Denton will pursue. PRIOR ACTION/REVIEW (Council, Boards, Commissions) June 12, 2007 First City Council Public Hearing FISCAL INFORMATION Development of this property will increase the assessed value of the city, county, and school district. It will require no short-term public improvements that are the responsibility of the city. The proposed annexation area will add additional tax base to the city. F,XHTRTT~ 1. Location Map 2. Annexation Summary Schedule 3. Service Plan 4. Service Area Analysis Brian Lockley, AICP Interim Director of Planning and Development Prepared by: ~~ v ~~ ,, Ron Menguita Planner III EXHIBIT 1 OCATION MAP ~ y + f - h :.. t •'~ •r '.I i ri ,7 . ^ s •........ L."""" ................ •.• . 7 .... .. s ~r~~ t EXHIBIT 2 ANNEXATION SCHEDULE SUMMARY Denton Municipal Electric Spencer Complex Potential Annexation Notices to Intent to Annex (30 day prior to lst PH) will be sent on May 4, 2007. Tuesday, 6/12/07 City Council conducts first public hearing. (2nd Tuesday Session) • Public notice must be no less than 10 days and no more than 20 days before public hearing. ^ Annexation Study prepared and available for public review. ^ Service Plan prepared and available for public review. Tuesday, 6/19/07 City Council conducts second public hearing. Public notice must be no less than 10 days and no more than 20 days before public hearing. Wednesday, 6/27/07 Planning and Zoning Commission public hearings -make a recommendation to City Council regarding the ro osed annexation and rezoning request. Tuesday, 7/17/07 City Council by afour-fifths vote institutes annexation procee mgs. 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. Sunday, 7/29/07 Ordinance published • The ordinance cannot be acted upon until at least 30 days after publication. Tuesday, 9/11/07 City Council by afour-fifths vote takes final action. Second reading and adoption of the annexation ordinance. City Council considers adoption 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 1st reading). The second reading of the ordinance and zoning approval could be held any time between August 28, 2007 and October 15, 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 (1st Reading of the Ordinance) more than 20 days after the second City Council public hearing but less than 40 days from the first City Council public hearing. EXHIBIT 3 CITY OF DENTON SERVICE PLAN FOR A07-0002 Denton Municipal Electric Spencer Complex Annexation I. AREA ANNEXED The annexation area is located on the north side of Spencer Road between Woodrow Lane and Brinker Road. The parcels are within a tract of land legally described as Municipal Utility Addition, Lot 1, Block 2. II. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021, 43.065, and 43.065(b)-(o) (Vernon 1999, as amended). Municipal facilities and services to the annexed area described above will be provided or made available on behalf of the City in accordance with the following plan. The City shall provide the annexed tract(s) the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the city with similar topography, land use, and population density. III. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection, and Animal Control Police service, including patrolling, response to calls, and other routine functions, will be provided to the property upon the effective date of the annexation using existing personnel and equipment. Code enforcement and animal control services will also be provided to the property upon the effective date of the annexation. B. Fire Protection Fire protection (within the limits of existing hydrants) and emergency medical services will be provided to the property upon the effective date of the annexation. The estimated emergency response time in this area is 3.5 minutes from future Station #2, located at 3309 E. McKinney Street. The City of Denton will provide emergency medical services ("EMS"). C. Roads and Streets Roads and streets, which have been properly platted, duly dedicated, and accepted by the City of Denton and/or Denton County, shall be maintained by the City of Denton on the effective date of the annexation. Installation and maintenance of street signs, street lighting and traffic control devices will be maintained by the City of Denton on the effective date of the annexation. D. Parks and Recreation Facilities Parks and recreational facilities in the area to be annexed will begin upon the effective date of the annexation according to the 2000 Parks and Recreation Master Plan. No parks are currently located within the proposed annexation area. Denton neighborhood park facilities are within reasonably close distance of the proposed annexation area. The closest Denton Parks property to the proposed annexation area is Mack Park, approximately 1.5 miles away. Residents of the proposed annexation area will be able to use existing City of Denton park and recreation facilities and programs. E. Library Services Library services will be made available on the effective date of the annexation on the same basis and at the same level as similar library facilities are maintained throughout the city. F. Building Inspections and Consumer Health Services Building inspections and consumer health services will be made available on the effective date of the annexation on the same basis and at the same level as similar facilities are maintained throughout the City. Both services are provided on a "cost recovery" basis, and permit fees offset the costs of services delivered. Incomplete construction must obtain building permits from the Building Inspections Department of the City of Denton. G. Planning and Development Services Planning and development services will be made available on the effective date of the annexation. The Planning and Development Department currently services this property by way of administration of the Denton Development Code, concerning subdivision and land development regu ations. city Council adopted The Denton Plan, the city's 1999-2020 comprehensive plan, by Ordinance 99-439 on December 7, 1999. The Future Land Use Plan addresses both land in the city and its ETJ, and the subject tract is within the Regional Mixed Use Centers land use designation. The Denton Plan designates future land uses to manage the quality and quantity of growth by organizing the land use patterns, by matching land use intensity with available infrastructure, and by preserving floodplains as environmental and open space corridors. The Denton Plan will be used as a basis for final zoning classifications after t e properties are annexe . IV. UTILITY (RATEPAYER) SERVICES A. Solid Waste Collection The City of Denton is the exclusive residential and commercial solid waste service provider in the City. City Ordinance requires Solid Waste services for all residences and commercial businesses located within the city limits. The City of Denton Solid Waste Department is fully funded through the service fees charged, and receives no funding from city tax revenues. Solid waste refuse collection and recycling collection services will be provided to the newly annexed property immediately upon the effective date of the annexation. To receive solid waste or recycling collection service, the customer must contact the City of Denton Customer Service Office, 940-349-8787, and submit arequest/application for service. Commercial customers are required to complete and submit a Service Agreement to Solid Waste Customer Service prior to receiving service. Commercial Refuse and Recycling Services Each commercial business will be provided with a commercial container(s), which are available in a variety of sizes and frequencies of collection, based on the waste and recyclables types and volumes generated. All refuse placed in the container for collection must be bagged to eliminate wind-blown debris and littering. Refuse that is not placed in the refuse container with the lid closed will not be collected. Refuse placed outside the refuse container is subject to code enforcement regulations, including potential fines. Recyclables placed in a recycling container shall not be bagged. Container lids shall be kept closed at all times during periods of materials storage (when not placing materials in t e container). Landfill Service The City of Denton Solid Waste Landfill hours of operation are 7:00 a.m. to 4:00 p.m. Monday through Friday; and 7:00 a.m. to 12:00 p.m. on Saturdays. For information regarding disposal charges, call the Landfill Office at 940-349-7510. B. Water/WastewaterFaci1ities There are water and wastewater facilities in the area to be annexed. The City will provide a level of water and wastewater service, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or proj ected in the area. C. Drainage Services Drainage maintenance will be provided to the property upon the effective date of the annexation. The City will provide a level of drainage services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or projected in the area. D. Electrical Services Denton Municipal Electric is certified by the State and is obligated to provide electric utility service to the annexation area should a request be made by a property owner. Electric utility service will be made available on the effective date of the annexation on the same basis and at the same level as similar facilities are maintained throughout the city. V. OTHER SERVICES Other services that may be provided by the City, such as municipal and general administration will be made available on the effective date of the annexation. The City shall provide a level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City with topography, land use, and population density similar to those reasonably contemplated or projected in the area. VI. CAPITAL IMPROVEMENTS PROGRAM (CIP) No new construction of additional water, sewer, street, and drainage facilities is contemplated within the annexed area as a result of this annexation. No construction of public improvements is contemplated as a result of this annexation that would begin within two and a half (2 %2) years after the effective date of the annexation. The City shall consider construction of other public improvements as the needs dictate on the same basis as such public improvements are considered throughout the City for areas having similar characteristics oftopography, land use, and population density. VII. UNIFORM LEVEL OF SERVICES MAY NOT BE REQUIRED Nothing in this plan shall require the City to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. VIII. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. IX. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056 (Vernon Supp. 2000). EXHIBIT 4 ANNEXATION REQUEST SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation The Planning and Development Department has received a request for annexation of two parcels, approximately 9.39 acres, located on the north side of Spencer Road between Woodrow Lane and Brinker Road. The parcels are within a tract of land legally described as Municipal Utility Addition, Lot 1, Block 2. Size: 9.39 acres Location: North side of Spencer Road between Woodrow Lane and Brinker Road Proposed use: Basic Utility Proposed zoninq: Employment Center Commercial (EC-C) The purpose of the service area analysis is to determine how the city would provide services to the area should it be annexed into the city. A service area analysis form is attached. Please provide the requested information and any other pertinent information. To determine the city's ability to provide services to the proposed area it is necessary to document: • each department's existing capacity to provide an adequate level of service to the proposed area; • additional personnel and capital equipmentlfacilities necessary to provide an adequate level of service to the proposed area; and • cost of providing additional service. Existing Conditions: Proximity to existing arterial and collector roads. This property is located on the north side of Spencer Road between Woodrow Lane and Brinker Road. Spencer Road is classified as a Collector Road on the City's Mobility Plan. Future Land Uses. The proposed annexation area is within the Employment Centers land use designation. Existing land uses: The subject property is currently developed as a Municipal Electric Utility Operation facility. Prominent natural features: The Environmentally Sensitive Areas (ESA) map shows that this property is not within an ESA or within a floodplain. Proximity to other service providers: The two within a tract of land owned by the City of Denton. The tract of land is currently use as a Municipal Electric Utility Operation facility. There are various water and sewer lines that transect the subject parcels. Thank you for your consideration of this request. Please submit any other information that you believe is pertinent to evaluate the provision of services to this area to Ron Menguita in the Planning and Development Department by May 18, 2007, and call (940)349-8328 if there are any questions. i ~ 'K ti.• 'lf s s ~' ~' ~' '~1 ~ fi ~ ~ I I:' ~ ~L, ~.l .~~, SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Fire 1. 2. 3. Fire and Emergency Medical Services can be provided to the area from station(s) # 2, located at 3309 E. McKinney Street. Estimated response time. 3.5 minutes Appropriate response time in the City. 3.5 minutes 4. Is a new fire station approved in the CIP that could serve this area? NO If yes, what is the CIP program year? 5. Will a new fire station be requested in upcoming CIP proposals to serve this area? NO If yes, when should this station be operational? 6. Total estimated funding for equipment, employees and/or facilities needed to serve this area strictly based on annexation and proposed development. NIA 7. Please comment on the cumulative impact of annexation and development. At what population level would another fire station facility be required? NIA Is there an accepted facility/equipment to population ratio that can be used for planning purposes? NIA Is there an accepted fire fighter to population ratio that can be used for planning purposes? NIA Additional Comments: NONE Rick Jones, (940) 349-8860 Person to contact if there are questions May 17, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Parks and Recreation 1. What neighborhood park and recreational facilities are currently serving this area or are capable of serving this area if annexed and/or developed (federal, state, or local)? None are within the proposed annexation. The closest Denton Parks property to the proposed annexation area is Mack Park,1.5 miles. Since this area is an industrial-government area, no residential currently exist or most likely ever will due to the municipal facilities on the property. 2. What projects and/or equipment will be needed to adequately serve this area if annexed and/or development based on the parks and recreation master plan or similar standards? The 2000 Denton Park and Recreation Master Plan does not indicate a need for a Community Park in the general area of the proposed annexation. Neighborhood Parks: 2.5 (to be dedicated at time of development) acres per 1,000 population 5 acres minimum size. (by developer) cost per acre. Recreation Center: square feet per 1,000 population. square feet minimum size. cost per square foot. Other facilities Community Parks: 3 acres per 1,000 population. 30 acres minimum. cost per square foot. 3. How much additional funding will be needed for maintenance if additional park facilities are developed to serve this area? NONE Based on $3,454 (developed) cost per acre cost per square foot 4. How many additional personnel would be needed to properly serve this area if annexed and developed? NONE additional personnel per 1,000 population; additional personnel per 1,000 square feet of facility; or additional personnel per acre of park. 5. Service Standards: 0.5 to 0.7 FTE (depending on type of service) additional personnel per 1,000 population $38,000 per year cost per additional personnel Additional Comments: NONE Bob Tickner, (940) 349-8275 Person to contact if there are questions May 25, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Police 1. Estimated average response time for this area based on current department conditions: Priority 4 minutes Non-priority 17 minutes Average 10.5 minutes 2. Appropriate average response time in the city based on current department conditions: Priority 4 minutes Non-priority 17 minutes Average 10.5 minutes 3. If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? NO If yes, how many? What type? 4. Will additional equipment and funding be needed to serve this area? NO If yes, what type? 5. Will a police substation or other facility be needed to serve this area as a result of annexation and development? NO If yes, when should the new facilities be operational? 6. Please comment on the cumulative impact of annexation and development. At what population level would another police facility be required? NIA Is there an accepted facilitylequipment to population ratio that can be used for planning purposes? NO Is there an accepted officer to population ratio that can be used for planning purposes? 1.79 Officers per 1,000 citizens Additional Comments: Lt. Lee Creamer Person to contact if there are questions June 5, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Library 1. Estimated additional funding needed strictly based on proposed annexation and development. $0.00 2. Please comment on the cumulative impact of annexation and development. Since this site is not planned for residential development, the annexation and development of the DME Spencer Complex will not have a negative impact on library services. 3. At what population level would another library facility be required? 131,738 4. Is there an accepted circulation to population ratio that can be used for planning purposes? YES; 8.7 is the national 2006 annual circulation per capita mean or average forthe legal service area population served by the Denton Public Library. 5. Is there an accepted employee to population ratio that can be used for planning purposes? YES;1FTE per 2,712 population 6. If annexed, can anticipated service demands be met using existing materials, facilities, and personnel? YES 7. If not, how many additional employees and what type of facilities and materials will be needed to provide services? NIA Additional Comments: This annexation will not impact the current level of library services. Eva Poole, (940) 349-8750 Person to contact if there are questions May 18, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Solid Waste 1. Is residential solid waste service available to the proposed area for annexation? Residential service has not been requested. The area is developed as an electric utility operations facility, receiving commercial service. 2. 3. 4. 5. 6. 7. Is commercial solid waste service available to the proposed area for annexation? Commercial service is currently being provided. What is the estimated cost to provide this area with solid waste service? Equipment and Maintenance. Incremental customer costs Personnel. Incremental customer costs What is the typical revenue collected per: Household. NIA Commercial Business Based on level of service Will additional equipment be needed to serve this area if annexed or developed? Type of Equipment. NIA Cost of Equipment. NIA Will additional employees be needed to serve this area if annexed or developed? Type of Employees. NIA Number of Employees. NIA Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? NIA Is there an accepted equipment to population ratio that can be used for planning purposes? NO Is there an accepted employee to population ratio that can be used for planning purposes? NO Additional Comments: NONE Scott Lebsack, (940) 349-8069 Person to contact if there are questions May 18, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Electric Utilities 1. What is the distance to, location of, and size of the nearest City of Denton electric line? 2. What type of lines and facilities would be required to serve this area? 3. Are any new lines or facilities proposed for construction to serve this area? 4. Are there any potential responsibilities if this area is annexed? 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning purposes? Is there an accepted employee to population ratio that can be used for planning purposes? Additional Comments: Our obligation to provide electric service if it is requested is tied to the Certificate of Convenience and Necessity (CCN) issued to DME by the Public Utilities Commission of Texas. Our authorized CCN does not correspond with the city limits. It includes most, but not all, of the present city limits and quite a bit of area outside the present city limits. If someone requests us to provide electric service anywhere within our CCN, we must provide thatservice, regardless of whether the facility is located within or outside the city limits. Therefore there is never any impact on DME from an annexation. Sharon Mays, (940) 349-8487 Person to contact if there are questions May 7, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Wate rlWastewate r 1. What is the nearest City of Denton water line? Size of water line. Location of water line. Distance from proposed annexation. 2. What is the nearest City of Denton sewer line? Size of sewer line. 12-inch Location of sewer line. Along access road to the Water Plant Distance from proposed annexation. Within the annexation area 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location Water lines Sewer lines None 4. Are there any City of Denton lines included in the proposed annexation?YES,12inch 5. Please comment on the cumulative impact of annexation and development At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning purposes? Is there an accepted employee to population ratio that can be used for planning purposes? Additional Comments: Since the property in question has been served water for years and will add no new population, I have no comments to provide. Tim Fisher, Assistant Director Water, (940) 349-7190 May 4, 2007 P. S. Arora, Assistant Director Wastewater, (940) 349-7189 May 18, 2007 Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Engineering and Transportation 1. What existing roads, bridges and other transportation facilities will be impacted by this proposed annexation and development in terms of needed improvements or upgrades? Name and location Type of Improvement Approximate Cost Spencer Road No improvements, however ROW will be required if not already dedicated 2. Are any of these improvements presently scheduled to be done at state or federal expense? NO If yes, please identify facility and anticipated date improvements will begin. 3. Please list any drainage improvements that may require local funding, and include estimated cost (if no specific improvements can be determined, please make general comments concerning drainage). 4. Will additional equipment and facilities be needed as a specific result of this annexation and development? NO If yes, what type of equipment or facility? 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? NONE Is there an accepted equipment to population ratio that can be used for planning purposes? NO Is there an accepted employee to population ratio that can be used for planning purposes? NO Additional Comments: As of this writing, Planning has not received a response from Drainage. As soon as information is received, it will be included in the Service Area Analysis. Bud Vokoun, (940) 349-7710 Person to contact if there are questions May 7, 2007 Date SERVICE AREA ANALYSIS A07-0002 Denton Municipal Electric Spencer Complex Annexation Denton Independent School District 1. Education services are currently provided by: 2. If annexed, can anticipated service demands be met using existing materials, facilities and personnel? 3. If not, how many additional employees and what type of facilities and materials will be needed to provide services? 4. Estimate additional funding needed strictly based on proposed annexation and development. 5. Will projected school taxes from this development provide that additional funding? 6. Please comment on the cumulative impact of annexation and development. 7. At what population level would other school facilities be required for the City of Denton? 8. Is there an acceptable employee to population ratio that can be used for planning purposes? Additional Comments: As of this writing, Planning has not received a response from Denton Independent School District. As soon as information is received, it will be included in the Service Area Analysis. Person to contact if there are questions Date AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT A07-0001 (Westview Commercial Annexation) Hold the second of two public hearings to consider the voluntary annexation and service plan for approximately 127.9662 acres. The property to be annexed is generally located in the northwestern area of the City of Denton's Extraterritorial Jurisdiction (ETJ) at the northwest corner of I-35N and the future Loop 288 extension. The parcel is legally described as a tract of land situated in the BBB &CRR Survey, Abstract No. O l 41 A, Denton County, Texas, and a tract of land situated in the Whitlock Survey, Abstract No. A1403A, Denton County, Texas. BACKGROUND Applicant: Spring Brook Planning Group Grapevine, TX A voluntary annexation proceeding is being considered by the City of Denton for the Westview Commercial property and associated right-of way. The ownership of the property is Westview Commercial LP. The subject property is currently undeveloped (see Exhibit 1) except for the development of one gas well site. The proposed annexation is being initiated by the applicant, Spring Brook Planning Group, on behalf of the property owner. The following items summarize the proposed annexation and important actions taken: ~ On Friday, April 27, 2007, the City Council was informed (reading file) of the request for the voluntary annexation proceedings for approximately 127.9662 acres legally described as a tract of land situated in the BBB &CRR Survey, Abstract No. 0141A, Denton County, Texas, and a tract of land situated in the Whitlock Survey, Abstract No. A1403A, Denton County, Texas. ~ On Tuesday June 12, the City Council held the first of the two public hearings to consider this voluntary annexation. • The entire area proposed for annexation is located within City of Denton's Extra- territorial Jurisdiction (ETJ) and is not zoned. ^ The Comprehensive Plan identifies this area to be within a Regional Mixed Use Centers land use designation. ^ The annexation is scheduled for completion on September 1 1, 2007 (see Exhibit 2). 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." 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 subject site is located in Denton's ETJ Division 1. As such, development is subject to only the City's subdivision regulations and not zoning regulations. The subject site is not platted; any subsequent subdivision or reconfiguration of the subject site will be subject to the city's subdivision regulations. Incorporation of this site into the city would not require additional properties. (1PTT(1NC 1. Proceed with the annexation. 2. Amend the land area proposed for annexation. 3. Amend the Service Plan. 4. Discontinue annexation. RECOMMENDATION The Development Review Committee recommends that the first public hearing for A07-0001 is held as scheduled. PRIOR ACTION/REVIEW (Council, Boards, Commissions) No prior action/review FISCAL INFORMATION Development of this property will increase the assessed value of the city, county, and school district. It will require no short-term public improvements that are the responsibility of the city. The proposed annexation area will add additional tax base to the city. F,XTTTRTTC 1. Location Map 2. Annexation Summary Schedule 3. Service Plan 4. Service Area Analysis Brian Lockley, AICP Interim Director of Planning and Development Prepared by: ~.. Lori Shelton, AICP Planner II 2 EXHIBIT 1 Location Map EXHIBIT 2 ANNEXATION SCHEDULE SUMMARY Denton Municipal Electric Spencer Complex Potential Annexation Notices to Intent to Annex (30 day prior to lst PH) will be sent on May 4, 2007. Tuesday, 6/12/07 City Council conducts first public hearing. (2nd Tuesday Session) • Public notice must be no less than 10 days and no more than 20 days before public hearing. ^ Annexation Study prepared and available for public review. ^ Service Plan prepared and available for public review. Tuesday, 6/19/07 City Council conducts second public hearing. • Public notice must be no less than 10 days and no more than 20 days before public hearing. Wednesday, 6/27/07 Planning and Zoning Commission public hearings -make a recommendation to City Council regarding the ro osed annexation and rezonin~~uest. Tuesday, 7/17/07 City Council by afour-fifths vote institutes annexation procee mgs. 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. Sunday, 7/29/07 Ordinance published • The ordinance cannot be acted upon until at least 30 days after publication. Tuesday, 9/11/07 City Council by afour-fifths vote takes final action. Second reading and adoption of the annexation ordinance. City Council considers adoption 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 1st reading). The second reading of the ordinance and zoning approval could be held any time between August 28, 2007 and October 15, 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 4 Government Code requires that City Council institute annexation proceedings (1St Reading of the Ordinance) more than 20 days after the second City Council public hearing but less than 40 days from the first City Council public hearing. EXHIBIT 3 CITY OF DENTON SERVICE PLA11T FOR A09-0001- Westview Commercial Annexation ~~ ~~~ i~ 1~~ in the n,~i~~n 'tt~~ ~f ~+~nt~~ ~tit~ T# ~ ~ the ~~~ ~ ~~ ~ 4 ~ ~ Tray ~ a i~ ~ .it~~~~ ~~ ~~~~f ~~ T~TI~ . ~ ~~. u~~l ~~~it,,e~ ~~~ t~ ~ rid ~~ ilk p~i~~~ ~~ rna~~ ~il~~I ~~ f ~~ t~~ i i~ ~~~~r~ ~rit~ ~h~ f~~1~~ ~, T~~ its ~ ~~i~~ ~~ ~~~ trait l~~r~l~ ~~ i~ i.n~r~~ int~r~ m~int~n~ the ~~~~ t~ tl l~~r~t~ ~~` i~~~ ~ ~~~~ur~ rn~int ~~ail~~t~ ~ qtr ~~ ~ it~r i~ ~imil~ YII, AD VALOREM fPROP`~RTY ~~V1~T~Rl TAX SERYICE~ ~~~t~~ i~~~ ~~Iu~.in~ plli.~~ ~~~ Il~# ~~r r~~ti nab ~~ ~~r~~ t1 ~ ~r~v~ ~ ~ ~m~ ~~~ t ~ti~~ t~ ~~ ~~~~n~ ~~ ~'~ ~r~#~~~ ~t ~r~ti~n ~# ~~ Iim~t~ ~~ ~~ai~~ hit~~ ens m~~i~~I ~i~ mill ~~~ t~ # ~~P ~p~~ ~~ '~~~ ~ i~ir~ t~i~ i ~i~~ Thy 1 ~f ~~nt~n i11 ~~i ~ m~~ i ~i ~~~ ~~~~ . ~~~ ~~ and try ~~~t ~ ~ 1 ~f inn ~ ~~~n~ ~u~a ~l ~~ n~t~ ~ ~~ i ~f >~~~~ ~n the ~f#`ti~~ t~ ~~ ~~~. 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I~ ~tl ~ Thy n~ ~l~ni ~ ~1~~ 1~~~ ~~~i~~ ~l~n~ I`~in.arl~~ ~~ ~n I~mt ~~ I T`h~ Futr~r~ L~ ~~ flan ~~~~~~~ 1~ in t ~ i ~~"~~ ~ ~ trait i~ ~ ~ ~~n~1 ~ Use ~ 1~ ~ dc~i~r~ T'l ~~~t~n ~l~ ~~it~~ ~ l~n~ u~ ~~ the ~n~~y q~i~ ~~' v~t~ ~~ ~uni~irr~ the ~~ ~~tt~, ~~ mahi.n~ 1~ u~~ inti its ~1~ i~~~ ~n~ 1 ~~~rin~ f 1~~~al~s ~~ n~m~tal ~ ~~~~r a~~ ~. '1''h~ I~~nt~n P1 X11 ~~ ~~ ~ ~ i~ f~~ .~~~ ~l~~~it~~ri~ a~.~r the pi~~ ~~, 7 1V. UTILI'T'Y TEPAYER SERVICES ~ ia~ ~~~ i~ ~ i* 'l~~ it i~ uir~~ ~li~ 1. T"~~ i ~f ~~ ~li~ t~ part l~ ~ia~ ~im~ u~~ slid ~~ ~ ~~ll~~ ~er~ri~~ l 1 the Mewl ~nne~~~ ~~rt ill u~ the ~'~~ti~rc ate ~f the ~~t. T~ ~~~ ~~Ir~ ~ ~~lle~ti~~ ~~r~i# the ~u.~~~r m ~~~t tie r~~u~$p~litl~~ fir i~~. ~'imi~l ~~st~mer~ ~ ~ ~rvi~ pry to ~~t sri. ~i~~~~~ ~li~ ~ ~r ~~ ~~ iti ~ mill pr~vi ~ t~~ #'u ~ ~i~~i w11I ~~e~ ~~~ t~ per ~ ~~1~ re~u~ t~ ~1~~e tit ~e ~~ the prime ~~1 ~.nL ~n #h~i~r 11~~ ~~, ~ ~~ ~ ~~~ ~~~ ll~~~~ ~~ ~arll~r tI :I~~ p.~f ~~ ~nin~ ~~ ~o tir tl~~ti~~ a~ ~ t~ be r~rno~~ ~~ ~ r~ Ir t ~ ~~~ ~n ~a ~'~11~~ fi~~ir lli~n ~~. 1 ~~fia~~ ~1~~ ~ the ~t ~~r ~~lle~~ ~e ~~ eli.~ir wI ~t~ I~ri~ ~.d Iltt`i~~. ~~ tl~t i~ n~~ ~1 l~ ~ v~it~ the lid ~lo~~~ Dili ~~t b~ ~~~~~t~ ~~n~ ~ ~m~~~ ~ ~iti~r~al rna~nt~l ~h~~e. ~~ ark ~ri~e l~ ~i~, kl ~~ ~t~m Ile~ti~~ ri~~ i~ ~~ ~~1~ ~~i ~~IIn~ ~~~ ~r~~i~e~ 1 Trinity ~ ~~~ ~'~nit ~t ~-~~~~i ~~ t~ ~~t~in ~nri~~ r~~i~ ~r~~~, Ali i~~i~l ~~m~r~~ rye i~~, ~~~~e rI ~~r~i~ lk its I1~ ~i~c~ ~n~ ~d t~ ~~i mil ~~~~r ~~ ~~ l~~~l~ t~l ine~~ mill ~m~~ its ~ r~rri~t~l c~~r~~~~ huh ~il~ I~ ~ i ~f ~i~ ~ fre~~i ~f ~~ll~~tt~~a e~ ~~ the ~~~ ~ v~lr~~ ~~t~~ X11 ~ ~I~ in ~t ~~r 11~~tf~n mgt ~~ ~I~i~~ ~rin~ ~1~ ~~~ri~ li~* a~~ that i~ t pl~~~ ~~ ~ ~~nts.x~~r s the Iid closed will not be collected. l~fus~ ptaced outside the container is subject t~ r.~de e~f'arcement regulations. including potential fines. L~nil i~~ Thy i ~~` ~~nt ~li~ ~~t~ ~ ~'~ ~f ~p~~ ~r~ ~; gym. ~~~Ii F~~n. ugh ~~i~ ~ ~+~I~ ~~. t~ ~; ~. ~n ~ i r ~ ~~~r~~~r F~~Iirti~~ ~~~ it iti F~ ~ ~1 a~ ~ ~n~ t~~ ~i~a ~~ ~~ur~ ~~ t i~ ~~~1~ ~~ ~~~ ~~~~ ~~ rr~~~~~ milt ~~ ~i ~~ n the ~f ~i ~~` ~#,i~n. 1 iil ~r~i ~ i~~~l ~~ ~ ~i t ~ i i~ ~t~~ t~~ ~i with ~~F~~h~ ~~~ ~ p~l~ti~fl ~i ~. ~1mi~r t~ ~~ m~~~~I nt~m~Ik~~ ~~ ~~a~~t ~ i~f~~ f~ ~ti~n ~i ~nt~ f~ ~~~p~m iti ~~ ~u~~t the ruir~rr~~k~ ~~i ~~~ Ft~r ~ F~~~~ ~~i~n ~n~ ~r~~ti~n ~~~~~t.~r~ ~'~ end 1 ~~" ~ i ~~~~nt~n n~~rn ~ n~ f~~min~ th.~ ~,~~ ~~ ~ ~~u~ lit ~ ~ the ~~~thn ~ ~~~ ugh t~ ~~ ~~t~r~ ~~' ~F-} ~ v~~l ~~ in~~ f~ ir~tn ~ t,~i~ ~rl~ a~~ ~it~er ~t ~ ~~~ ~~i~iti~~ ~ ~~~ ~~i ~ t~~m~n mill r~e~uir # pr~p~r ~~~~F~ ~ ~rili ~~1~~~ i~ ~ ~~~~F~~ the iii i ~~~ ~~+ • F t ~~rn~nt~ t~ ant ~~~~~~ imp t~ ~1~~. ~. ~ltriI i~~ I~~ uni~ip~ai ~ltri~ i~ ~ ~}~ ~ t~t~ t~ ~~~i~~ ~I~~~i~ utility ~~r~i~ the ann~~~~ ~ 9 ~ i~ tit ~~ ern r i~~ ~~ rnua~~i~~~ ~n~ e~~r~. Thy 1 ~~ ~r~~i~~ ~ l~rl ~ ~~~~ ~~f~~ ~ ~~~~~ ~ ~~ ~ ~~ ~m~~~ to the i~v~~ ~~ r} i ~ irr~~ ~n~~ ~~~il~ i~ ~~~r ~ ~~ ~~ *~ ~ ~~~~1 ntn~~at ~r ~t~~ in ~ 1ti~n ~~` tip im~ra~ ~~ ~~nt~m~~~ ~s ~ ~~~~ ~~` `~ ~ ~f t ~ti~~, ~ s~ i~~r inn ~~` a 1 i 'f I~ ~~li LEL F ~1~I~E i'Y Nom" ~~ 1~~ .~ ~t ~ ~hi~ ~l ~lli ~~ i t~ u~i~'~ lI ~f futl '~~ ~r~i~~ ~I ~ ~ali~ ~~ ~ i ~~ i ~ ~ yrs. ~~~~~ n~ the i~~ ~lar~ ~t ~ ~t ~ ~i~r~ ~f i ~t~~il~ ~n tit ~~n i~n~ ~~ I~~~~# ac~~~~ ~~ t~i~ ~i~~ ~ ~anr~~rli~ ~~ ~~~~ T i~~ nun~il ~ t ~i ~t~ ~~ n#`~~m t~ t ~}~~ ~nn~~~ ~~ ~u~qu~~t ~urr~n~ r~anok t~ ~~ i f l La 'ch2r~rt r owner ~a 10 EXHIBIT 4 ANNEXATION REQUEST SERVICE AREA ANALYSIS A07-0001- Westview Commercial The Planning and Development Department has received a request for annexation of approximately 127.9662 acres generally located on the west side of I-35N at the proposed extension of Loop 288. Size: 127.9662 acres Location: West of Interstate 35 North at Loop 288 Proposed use: Commercial Development Proposed zoning: Regional Center Commercial Downtown (RCC-D) The purpose of the service area analysis is to determine how the city would provide services to the area should it be annexed into the city. A service area analysis form is attached. Please provide the requested information and any other pertinent information. To determine the city's ability to provide services to the proposed area it is necessary to document: • each department's existing capacity to provide an adequate level of service to the proposed area; • additional personnel and capital equipment/facilities necessary to provide an adequate level of service to the proposed area; and • cost of providing additional service. Existing Conditions: Proximity to existing arterial and collector roads. This property is located on the west side of I35N at the proposed extension of Loop 288. The proposed Loop 288 extension will make up the southern boundary of the site. Both the proposed Loop 288 extension and I35N are designated on the Denton Mobility Plan as Freeways. Future Land Uses. land use designation. The proposed annexation area is within the Regional Mixed Use Centers Existin land uses: The subject property is primarily undeveloped and has one gas well site. Prominent natural features: The Environmentally Sensitive Areas (ESA) map shows protected stream buffers located on the subj ect site. Proximity to other service providers: Based on the current data, there is no sewer line in close proximity to the subject property. There is a 16 inch water line that runs along the northern boundary of the property and a 16 inch water line that runs along I-35 North to the east of the property. 11 12 SERVICE AREA ANALYSIS A07-0001- Westview Commercial FIRE 1. Fire and Emergency Medical Services can be provided to the area from station(s) # 5 , located at 223 0 W. Windsor 2. Estimated response time. _3.5 minutes 3. Appropriate response time in the City. 3.5_ minutes 4. Is a new fire station approved in the CIP that could serve this area? No If yes, what is the CIP program year? 5. Will a new fire station be requested in upcoming CIP proposals to serve this area? No If yes, when should this station be operational? 6. Total estimated funding for equipment, employees and/or facilities needed to serve this area strictly based on annexation and proposed development. _n/a 7. Please comment on the cumulative impact of annexation and development. At what population level would another fire station facility be required? _n/a Is there an accepted facility/equipment to population ratio that can be used for planning purposes? _n/a Is there an accepted fire fighter to population ratio that can be used for planning purposes? _n/a Additional Comments: Rick Jones, Fire Marshal Person to contact if there are questions 5/17/2007 Date 13 SERVICE AREA ANALYSIS A07-0001- Westview Commercial Parks and Recreation 1. What neighborhood park and recreational facilities are currently serving this area or are capable of serving this area if annexed and/or developed (federal, state, or local)? None are within the proposed annexation. The closest Denton Parks property to the proposed annexation area are North Lakes Park,1.5 miles, Northpointe Park, 2.2 miles, McKenna Park, 2.75 miles, Airport Open Space Park, 3,6 miles. Current residents will be able to use existing City of Denton parks, facilities and programs. 2. What projects and/or equipment will be needed to adequately serve this area if annexed and/or development based on the parks and recreation master plan or similar standards? The 2000 Denton Park and Recreation Master Plan does not indicate a need for a Community Parkin the general area of the proposed annexation. Service Standards: Neighborhood Parks: 2.5 acres per 1,000 population (to be dedicated at time of development) 5 acres minimum size. (by developer) cost per acre. Community Parks: 3.0 acres per 1,000 population 30 acres minimum 3. How much additional funding will be needed for maintenance if additional park facilities are developed to serve this area? None Service Standard: Based on $3,454 (developed) cost per acre. 4. How many additional personnel would be needed to properly serve this area if annexed and developed? None Service Standards: 0.5 to 0.7 FTE additional personnel per 1,000 population (depending on type of service) X38,000 per year cost per additional personnel Additional Comments: Person to contact if there are questions Date: 5-4-07 Bob Tickner, Superintendent of Park Planning and Development, 940-349-8275 14 SERVICE AREA ANALYSIS Police A07-0001- VVestview Commercial 1. Estimated average response time for this area based on current department conditions: Priority 4 minutes Non-priority 17 minutes Average 10.5 minutes 2. Appropriate average response time in the city based on current department conditions: Priority 4 minutes Non-priority 17 minutes Average 10.5 minutes 3. If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? NO If yes, how many? What type? 4. Will additional equipment and funding be needed to serve this area? NO If yes, what type? 5. Will a police substation or other facility be needed to serve this area as a result of annexation and development? NO If yes, when should the new facilities be operational? 6. Please comment on the cumulative impact of annexation and development. At what population level would another police facility be required? N/A Is there an accepted facility/equipment to population ratio that can be used for planning purposes? NO Is there an accepted officer to population ratio that can be used for planning purposes? 1.79 Officers per 1,000 citizens Additional Comments: Lt. Lee Creamer Person to contact if there are questions 06/05/2007 Date 15 SERVICE AREA ANALYSIS Library A07-0001- VVestview Commercial 1. Estimated additional funding needed strictly based on proposed annexation and development. $0.00 2. Please comment on the cumulative impact of annexation and development. Since this site is not planned for residential development, the annexation and development of VVestview Commercial will not have a negative impact on library services. 3. At what population level would another library facility be required? 131,738 4. Is there an accepted circulation to population ratio that can be used for planning purposes? Yes; 8.7 is the national 2006 annual circulation per capita mean or average for the legal service area population served by the Denton Public Library. 5. Is there an accepted employee to population ratio that can be used for planning purposes? Yes; l FTE per 2,712 population 6. If annexed, can anticipated service demands be met using existing materials, facilities, and personnel? Yes, as this annexation is designated as commercial. 7. If not, how many additional employees and what type of facilities and materials will be needed to provide services? N/A Additional Comments: This commercial annexation will not impact the current level of library services. Eva Poole, Director of Libraries Person to contact if there are questions May 18, 2007 Date 16 SERVICE AREA ANALYSIS A07-0001- VVestview Commercial 1. 2. 3. 4. 5. Is residential solid waste service available to the proposed area for annexation? Yes Is commercial solid waste service available to the proposed area for annexation? Yes What is the estimated cost to provide this area with solid waste service? Equipment and Maintenance. Incremental Service Cost Personnel. Incremental Service Cost What is the typical revenue collected per: Household. Based on Refuse cart provided. Commercial Business Based on container and frequency of service. Contact Customer Service, 940-349-8787, for service level and cost information. Will additional equipment be needed to serve this area if annexed or developed? Type of Equipment. No Cost of Equipment. No 6. Will additional employees be needed to serve this area if annexed or developed? Type of Employees. No Number of Employees. NA 7. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? NA Is there an accepted equipment to population ratio that can be used for planning purposes? No Is there an accepted employee to population ratio that can be used for planning purposes? No Additional Comments: S. Lebsack, 940-349-8069 Person to contact if there are questions 5/10/07 Date 17 SERVICE AREA ANALYSIS A07-0001- Westview Commercial Electric Utilities 1. What is the distance to, location of, and size of the nearest City of Denton electric line? The nearest electric line is asingle-phase primary line providing electric service to the water stora e. 2. What type of lines and facilities would be required to serve this area? Three phase primary electric lines would be required to provide electric service to this area. 3. Are any new lines or facilities proposed for construction to serve this area? No 4. Are there any potential responsibilities if this area is annexed? NO 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? NA Is there an accepted equipment to population ratio that can be used for planning purposes? NA Is there an accepted employee to population ratio that can be used for planning purposes? NA Additional Comments: Don McLau hg lin (940) 349-7119 Person to contact if there are questions May 17, 2007 Date 18 SERVICE AREA ANALYSIS WactPwatPr A07-0001- VVestview Commercial 1. What is the nearest City of Denton water line? Size of water line. Location of water line. Distance from proposed annexation. 2. What is the nearest City of Denton sewer line? Size of sewer line. 10-inch Location of sewer line. _800 feet north of north boundary of proposed annexation area, and 800 feet west of IH35 ROW Distance from proposed annexation. 800 feet 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location Water lines Sewer lines None included in the Master Plan 4. Are there any City of Denton lines included in the proposed annexation? No 5. Please comment on the cumulative impact of annexation and development At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning purposes? Is there an accepted employee to population ratio that can be used for planning purposes? Additional Comments: P. S. Arora, Assistant Director Wastewater to contact if there are questions May 18, 2007 Person Date 19 SERVICE AREA ANALYSIS Water A07-0001- Westview Commercial 1. What is the nearest City of Denton water line? Along north side of property along FM 1173 and the east side of property along I 35 Service Road. a. Size of water line. 16 inch b. Location of water line. see above c. Distance from proposed annexation. see above_ 2. What is the nearest City of Denton sewer line? a. Size of sewer line. b. Location of sewer line. c. Distance from proposed annexation. 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. i. Size Year Location b. Water lines 20 inch Along Loop 288 c. Sewer lines 4. Are there any City of Denton lines included in the proposed annexation? 5. Please comment on the cumulative impact of annexation and development a. At what population level would additional equipment be required? b. Is there an accepted equipment to population ratio that can be used for planning purposes? One crew per 18,750 Population c. Is there an accepted employee to population ratio that can be used for planning purposes? One FTE per 5,000 Population Additional Comments: The proposed line extension along the ROW extension of Loop 288 will be required by the developer at the time of platting of the property. Tim Fisher, Assistant Director of Water Utilities Person to contact if there are questions May 4, 2007 Date 20 SERVICE AREA ANALYSIS A07-0001- Westview Commercial En~ineerin~ and Transportation 1. What existing roads, bridges and other transportation facilities will be impacted by this proposed annexation and development in terms of needed improvements or upgrades? Name and location Type of Improvement Approximate Cost 2. Are any of these improvements presently scheduled to be done at state or federal expense? If yes, please identify facility and anticipated date improvements will egm. 3. Please list any drainage improvements that may require local funding, and include estimated cost (if no specific improvements can be determined, please make general comments concerning drainage). 4. Will additional equipment and facilities be needed as a specific result of this annexation and development? . If yes, what type of equipment or facility? 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning purposes? Is there an accepted employee to population ratio that can be used for planning purposes? Additional Comments: As of this writing, Planning has not received a response from Engineering and Transportation. As soon as information is received, it will be included in the Service Area Analysis. Person to contact if there are questions Date 21 SERVICE AREA ANALYSIS A07-0001- Westview Commercial Denton Independent School District 1. Education services are currently provided by: 2. If annexed, can anticipated service demands be met using existing materials, facilities and personnel? 3. If not, how many additional employees and what type of facilities and materials will be needed to provide services? 4. Estimate additional funding needed strictly based on proposed annexation and development. 5. Will projected school taxes from this development provide that additional funding? 6. Please comment on the cumulative impact of annexation and development. 7. At what population level would other school facilities be required for the City of Denton? 8. Is there an acceptable employee to population ratio that can be used for planning purposes? Additional Comments: As of this writing, Planning has not received a response from Denton Independent School District. As soon as information is received, it will be included in the Service Area Analysis. Person to contact if there are questions Date 22 AGENDA INFORMATION SHEET AGENDA DATE: June 19, 2007 DEPARTMENT: Economic Development CM: George C. Campbell ~ ~T 1R TF,CT Consider appointing a nominating committee to develop a slate of appointees for the Economic Development Partnership Board. BACKGROUND Economic Development Partnership Board (EDPB) members serve two-year terms and may serve as many as three terms. The process requires that the City Council appoint three members to serve as the nominating committee, two from the City Council and one from the Chamber of Commerce. The committee will meet with the Chamber of Commerce Board Chair to consider recommendations of EDPB members. The committee is asked to confirm with each nominee their willingness to serve. Our ordinance provides that EDPB members must fall into specific categories when they are originally appointed to the Board -City Council member, Chamber of Commerce Board of Directors, Top Twenty Taxpayer and University of North Texas appointment. The following five EDPB members' places are up for reappointment or replacement: EDP Board Member Category Eligible for Reappointment Euline Brock City Council Eligible Jerry Mohelnitzky Chamber of Commerce Eligible Bob Haley Top 20 Taxpayers Not Eligible (1 year remaining on term) Denny Aldridge Top 20 Taxpayers Eligible ESTIMATED SCHEDULE OF PROJECT The City Council is scheduled to receive a report from the nominating committee at their July 17, 2007 meeting. The Council will also vote on the slate of appointees at that time. Respectfully submitted: 'e ~ 6' r .~ i v } •.L1~3 F .. Y Linda Ratliff, Director Economic Development Department -1- ~ ~ Handout to Council -Item 4J 06/19/2007 NOTICE CF CQNFENT~ALIT~ HT~ YF YOU ARE A NATURAL PERSON, YOU MAY REIVI~E R TRII ANY [~R ALL DF THE F~LLDII~~ INF~~- NIATI~N FRAM THIS INSTRUMENT BEFORE IT I FiLEI] FAR REC~I~D IN THE PUBLIC RECORD: YOUR SOCIAL ECU~ITY NUMBED ~R YOUR DRYER'S LICENSE NUMBER. AIL AND SAS 1~AE This Oil and has Lease this "Lease"~ is made on , 2~a7 between 'T 'n'~ ~F D~rrrorr, T~x~~ ~hereai~er called {`Lessor," whether ane yr .ore}, whose address is 1 E. ~c~ey ~., De~tvn, Tee 7~~1 and Er~~~vv~ Ex~~~ REoT.~~E, L.P., whose address is 1101. ar~enfe~d uYte Z4~,1VI~d~and, ~e '~9~"~~ thereafter called "Lessee"}, 1, tint. In consideration ~~ one Thousand and nail ~~s dollars ~~ 1 a~0.~0} per mineral acre and other goad and valuable consideration in hand paid, Lessor grants and leases exclusively unto Lessee the fallowing described land tthe "Land"~ in Denton County, Texas, for the sole purpose of exploring under, drilling under, and to produce, save, treat, process, stare, and transport oit and gas and other products manufactured frarn art and gas produced fxv the Land; 19,4 Acres as mare particularly described vn Exhibit "A" attached hereto and nude part hereof. ~. Primary Term. This Lease is for a term of sue ~. ear from this date tailed "Primary Term"~ and as long thereaer vii yr g is produced from the Land in paying quantities. 3, urce Jae ProhibitedlProtect~an of Public 1,Jnd~. There is hereby excepted and reserved to LESSER the full use of the land covered hereby and all rights with respect to the surface and subsurface thereof far any and all purposes and all miner- als except those expressly leased herein and only to the extent herein leased to LESSEE, LESSER reserves and excepts from this Lease all of the surface of the land described in paragraph 1, and LESSEE agrees that it will not conduct drilling operations or any other operations or activities of any nature on the surface of such Land. Lessee its agents, can- travactors, heirs, successors or assigns shall have no rights of ingress or egress upon the sur- face of the Land and herein waives any rights tv any implied casement #~ use the surface of the Land. Unless this Lease speclf~cally provides far the conduct of se1snuc opera- tions, Lessee is prohibited from using the surface of the Land far any purpose, but Lessee may engage in directional or horizontal drilling activities beneath the Land that are con- ducted an the surface of other lands. Any directional ar horizontal drilling must penetrate the Land sufficiently below the surface as to not interfere with the present ar future use of the surface of the Land for public park use, and in nv event nay the directional or hori- ~vntal drilling penetrate the Land less than Oa feet below the surface. A directional or horizontal well drilled under this provision shall be considered to be located an the Land. Page 1 of 13- ~~ A~ ~s L~as~ City of Dento~lross Timbers Park Lease) [swk~;~22~47] s.lour docttet~slcontr~ets1~71cross timbers park lease ~ ~~~n~7 final},doe y f ' Lessee's surface locations for wells affecting this Lease sha11 not enter ~ surface within 5aa feet ofthe Land. 4, M~e~ hovered. This Lease cavern only oil and gas. The term "ail and gas" weans ail, gas, and other liquid and gaseous hydrocarbons produced through a well bare. 5, Ro~a~ty. ~a} As royalties, Lessee agrees: . ~ ~ ~ To deliver free of cast to Lessor at the wells or to the credit of Lessor at the pipeline tQ which the wells nay be connected, twenty five percent the "Royalty percentage"} of all aid and other liquid hydrocarbons produced and saved from the Land. At Lessor's option, which may be exercised from time to t.e, Lessee shall pay to Lessor the same part of the market value at the well of ail and other liquid hydrocarbons of like grade and gravity prevailing on the day the ail and other hydrocar- bons are run franc the Lease in the general area in which the Land is located. (2) To pay to Lessor: ~i} ~n gas produced from the Land and Bald by Lessee or used on ar off the Land and to which the following subparagraphs iii} and viii} da not apply, the Royalty Percentage of the market value at the point of sale, use, or other disposition. iii} ~n gas produced from the Land that is processed in a processing plant in which Lessee ar an afliate of Lessee has a direct or indirect interest, the higher of the Royalty Percentage of the market value of the gas at the iniot to the processing plant, ar the Royalty Percentage of the market value of all processed liquids saved from the gas t the plant plus the Royalty Percentage of the n~.ar- ket value of alt residue gas at the point of sale, use, ar other dispos~t~an. viii} ~n gas produced from the Land that is processed in facilities other than a processing plant in which Lessee or an affiliate of Les- see has a direct or indirect interest, the Royalty Percentage of the market value at the plant of all processed liquids credited to the account of Lessee and attributable to the gas plus the Royalty Percentage of the market value of all residue gas at the point of sale, use, ar other disposition, {b} If gas produced from the Land is Bald by Lessee pursuant to an arms-length contract with a purchaser that is not an affiliate of Lessee, and for a term no longer than that which is usual and customary in the industry at the time the contract is made, then the market value of the gas sold pursuant to the contract shall be the total proceeds received by Lessee in the sale, subject to the provisions of paragraph Sic} be~ low. Page 2 ~f 1 ~- ~, Alen ~ L~s~ ~~ity ~f I~entonfross Timers Park Lea~se~[~wh;0~2']~?] s:~o~r docume~tslcontrac~s1~71crass umbers pad lease 11 jr~~~7 ~fi~a1).doc (c) The mazket value of gas will be determined at the specified loca- tion by reference to the gross heating value (measured in British thermal units) and quali- ty of the gas. The mazket value used in the calculation of oil and gas royalty will never be less than the total proceeds received by Lessee in connection with the sale, use, or other disposition the oil or gas produced or sold. For purposes of this paragraph, if Lessee rece- ives from a purchaser of oil or gas any reimbursement for all or any part of severance or production taxes, or if Lessee realizes proceeds of production after deduction for any ex- pense of production, gathering, dehydration, separation, compression, transportation, treatment, processing, storage, or mazketing, then the reimbursement or the deductions will be added to the total proceeds received by Lessee. Royalty will be payable on oil and gas produced from the Land and consumed by Lessee on the Land for compression, de- hydration, fuel, or other use. (d) Lessor's royalty will never beaz, either directly or indirectly, any part of the costs or expenses of production, sepazation, gathering, dehydration, compres- sion, transportation, trucking, processing, treatment, storage, or mazketing of the oil or gas produced from the Land or any part of the costs of construction, operation, or depre- ciation of any plant or other facilities or equipment used in the handling of oil or gas on the pooled lands and/or prior to the point of sale. It is understood and agreed between Lessor and Lessee that this clause shall not be considered surplusage as per the principles of the Heritage Resources v. Nations Bank, 960 S.W.2d 619 (Tex. 1997) case and shall be given its full meaning and effect. Notwithstanding anything herein contained to the contrary, Lessor and Lessee agree that Lessor's royalty on gas (to the extent Lessor has not elected to take his or her royalty gas in kind) shall beaz its proportionate share of post-production costs associated with such gas to the extent such production costs aze in- curred at a point or points not on the lease premises. In the event Lessee and/or its affili- ates provide off-lease post-production services the fee attributable to Lessor's royalty gas shall be the lesser of: 1) the lowest rates chazged third parties by Lessee and/or its affili- ates for similaz services or 2) the lowest rate that could otherwise be negotiated under an arms length agreement with bona-fide third parties for the same services. (e) Lessor shall be paid the Royalty Percentage of all payments and other benefits made under any oil or gas sales contract or other arrangement, including take-or-pay payments and payments received in settlement of disputes; provided that if Lessor receives atake-or-pay payment or similaz payment for gas that has not been pro- duced, and if the gas is subsequently produced, Lessor will only receive its Royalty Per- centage of any payments made for make-up gas taken pursuant to the take or-pay provi- sion or similaz provision. (f) Lessee must disburse or cause to be disbursed to Lessor its royalty on production from a particulaz well not later than 90 days a8er completion of the well, in the case of an oil well, or after the pipeline connection, in the case of a gas well. The- reafter, Lessee must disburse or cause to be disbursed to Lessor its royalty on production by the last day of the second month after the month of production. If not paid when due, Lessor's royalty will beaz interest at the maximum lawful rate from due date until paid, which amount Lessee agrees to pay. Acceptance by Lessor of royalties that aze past due Page 3 of l3- On. Alva Gas Lease (City of Denton/Cross Timbers Pazk Lease)[swh;022707] s:lour documeo[s[cootractsW7~cross timbers park lease 1 Ijun07 (fmal).doc will not act as a waiver or estoppel of its right to receive interest due thereon unless Les- sor expressly so provides in writing signed by Lessor. The royalty payment obligations under this Lease shall not be affected by any division order or the provisions of the ec- tior~ I ,4a~ of the Texas Natural resources bode or any sir~.ilar statute. fig} Upon written request by Lessor, Lessee shall tender a full account- ing as to the payment of royalty to Lessor within ~~ days of said. request, The format shall be in the form requested by Lessor, ~Iawever, if na format is specified Lessee shall respond in a format that provides Lessor with an accurate depiction of the amount of pro duc~on from the wells} affecting this Lease for the tine period specified and the alloca- tions of payments to the Lessor along with deductions, if any. ~h} s used in this Lease, "affili.te" means ~i~ a corporation, point ven- tare, partnership, ar other entity that owns more than ten percent of the outstanding vat in interest of Lessee or in which Lessee owns mare than ten percent of the outstanding voting interest; or ~ii~ a corporation, ~ Dint venture, partnership, or other entity in which, together with Lessee, mare than ten percent of the outstanding voting interests of bath Lessee and the other corporation, joint venture, partnership, or other entity is owned or controlled by the same persons or group of persons, ~i} The receipt by Lessee from a purchaser or a pipeline company of proceeds of production for distribution to Lessor will not result in Lessee acquiring legal or equitable title to those proceeds, but Lessee will at all tine bald the proceeds in trust for the benefit of Lessor. l~otwithstanding the insolvency, bankruptcy, or other business failure of a purchaser of production from the Land or pipeline company transporting pro- duction firomthe Land, Lessee will remain liable for payment to Lessor for, and agrees to pay Lessor all royalties due Lessor together with interest if not timely paid. 6. Shat#i~ l~o~~lty. ale there i~ a gas well on this Lease capable of pro- ducing gas in paying quantities, but gas is not being sold, Lessee shall pay or tender in advance an annual shut-in royalty of 2~a.aa per acre leased herein from which gas is not being said, The first payment of such sum shall be on or before the first day of the calen- dar month at the expiration of ninety ~9a~ days from the date the Lease is not maintained by production, and thereafter subsequent payments nay be .ode at annual internals, V~hile shut-~ royalty payments are timely and properly paid, this Lease will beheld as a producing lease. The right of Lessee to maintain this Lease in force by payment of shut-in gas royalty is limited to the period of two years that follow the expiration of the Primary Team, The obliga~.on of Lessee to pay shut-in royalty is a condition and not a covenant, The payment or tender of royalty under this paragraph may be made by the check ofLes- seemailed or delivered to the parties entitled thereto an or before the due date. 7. Dr~I~ing ~~lig~t~o~IDe~ay l~el~t. ~n or before 1S0 da ~ firo>~ this date, Lessee agrees to connnence the actual drilling of a well on land. pooled pursuant to para- graph ~ a below with the band and thereafter drill it with reasonable diligence and ~. a good and workmanlike manner to a depth sufficient to test the Barnett shale Formation via horizontal drilling. while drilling the well, if Lessee encounters conditions that render Page 4 of 13- Gd A~1D GAS ~~ASE City of ~ent~~f~rass Timbers Park Lease~~sw~;~70T] s:l~ur document~lcontracts~171cross timbers park lease l l~un~? final}.doe fher drilling impractical, Lessee play commence a substitute well within a days after abandoning the well. A substitute well that is drilled to the depth and in the manner re- quired far the first well will satisfy this drilling obligation. ~f Lessee fails timely to com- mence the well, or if having cam~nenced the well fails to drill it to the depth and in the manner required, this Lease will terminate. Lessee may delay the conencernent of said well to the end of the Primary Tema by paying to Lessor a one time Bela rental in the Y amount of $Saaa.Oa before the end of the first 1 SD days of this lease. Said delay rental sha11 be paid directly to Lessor at the address listed above. 8. ontinuou~ Devel~p~en~. ~a} If, at the expiration of the Primary Term, ail or gas is not being produced from the Land, but Lessen has commenced the drilling of a wall on lands that will farm a proration unit that will include the Land, the Lease will not terminate but will remain in effect for so long thereafter as operations arc carried out with due diligence with no cessation of more than a days, and if the operations result in the Production of ail or gas, the Lease shall remain in farce a,s otherwise provided herein. Far the purposes of this Lease, the term {`operations" means operations far any of the following: drilling, testing, completing, rewording, recampleting, deepening, plugging bacl~, or repairing of a well in search of or in the endeavor to obtain production of oil or gas. fib} After the Primary Term, if this Lease is maintained by production ar otherwise,lt will remain In force as to all acreage and depths as long as there Is na lapse of more than 1 ~a days between the completion of ane well and the commencement of the actual drilling of another well. The commencement of actual drilling means the penetration of the surface with a drilling rig capable of drilling to the anticipated total depth of the well. After a well is camn~enced, drilling operations must continue with dili~ Bence and in a gaol and worl~.i~c manner in a goad faith effort to reach the antic- ipated total depth. A. well will be deemed to have been completed on the date of the re- lease of the drilling rig franc the drillsite. The permitted time between veils shall be cu- mulative so that if a well is commenced prior to the date it is rewired. to be canan~enced, the number of days prior to the date on which the well should have been commenced shall be added to the tune Permitted far the next well. ~c~ ~f at any time the maxi~.una time for the commencement of the ac- tual drilling of a well expires without tie conatnencement of a well, or upon the expira- tian ofthe Primary Term if the Lease is not maintained by continuous drilling, this Lease viii terminate except as to the portion of the Land. contained in ariy Proration unit with a well that is then producing in paying quantities or deemed to be producing in paying quantities by virtue of payment of shut~in royalties. The Lease will then terminate as to all depths below the stratigraphic equivalent of the base of the deepest producing forma- tion onthe said proration unit. If production from the said proration unit ceases from any cause, this Lease will terrnitaate as to the portion of the Land contained therein unless Lessee commences operations far drilling or reworn on the well from which produc- tion ceased ar an a new well an other lands that would include the Land in the proration unit within 9a days after the cessation of production, in which case the Lease as to that Page 5 of 13- ~~ A~ Gas L~s~ {City oi~Dento~ICross Tubers Park lease}~swh;022747~ s:lo~r docu~aen~slcQn~actsl~7lcro~s t#m~ers park lease 11jun~7 ~~na~t}.doe tract will continue in force as long as the operations are prosecuted with no cessation of more than ~D consecutive days. If the said operations result production, then this Lease shall remain ~ force so long thereafter as there is production from the tract. ~d} As used in this Lease, the term`horizontal well" means a well that meets the definition of a "horizontal drainhole well" under statewide Rule ~~ of the Rail- road Connnission of'fexas, and a "vertical well" is a well that is not a horizontal well. A proration unit far a vertical well producing from the Barnett shale formation nay not ex~ ceed 4a acres. If field rules are established later that permit obtaining a drilling permit with less acreage, a proration unit for a vertical well may not exceed the minimum size permitted. A proration unit for a horizontal well may include the minimum acreage speci- .ed above for a vertical well plus the additional acreage listed in the tables ha Rule SG {Far Fields with a Density Rule of 4a Acres or Less} and must comply with the require- ments of Rule ~~ far minimum. permitted well density, and if the well is producing from the Barnett shale formation, the acreage of a proration unit shall be assigned a if well density for vertical wells is 4~ acres or less. Each proration unit far a vertical well must be as nearly in the form of a square as is practical with the well in the center of the square and with the sides of each square running in the cardinal directions, Eaeh proration unit for a horizontal well must be in the farm. of a rectangle with the horizontal drainhole be- ing as nearly as practical slang the center line of the long dimension of the rectangle. 9. Paa~g. Lessor and Lessee recagni~e that it nay in the interest of each party for portions of the Land to be pooled with adjacent land to create pooled units for verrtical or horizontal drilling. Lessor and Lessee agree that Lessee has the authority to pawl the Land in the Acme gas Unit which said unit shall not exceed ~4~ acres plus 1~% acreage tolerance. Lessee shall goal all of Lessor's Land in said gas unit and shall not release any portion thereof without Lessors written consent. Any other proposed unit will only become effective upon Lessor's consent, which consent will not be unreasona- blywithheld. l a. Secondary Recovery. Lessee will not implement any repressuring, pres- sure maintenance, recycling, or secondary recovery operations without the prior written consent of Lessor. 11. -ce ~J~e. Unless this Lease specifically provides far the conduct of seismic operations, ,Lessee is prohibited from using the surface of the Land for any pur- pose, but Lessee may engage in directional drilling activities beneath the Land that axe conducted on the surface of other land. Any directional drilling must penetrate the Land su~ffciently below the surface as to not interfere with the present or future use of the sur- face of the Land for comrnercial or residential use, and in no event may the directional drilling penetrate the Viand less than ~~0 feet below the surface. A directional well drilled under this provision shall be considered to be located on the Land. l ~. ~in~ents. Lessor is granting rights to Lessee that Lessor would not grant to others. Therefore, prior written approval of Lessor is required for any assignment ar sublease of this Lease, not to be unreasonably withheld. All assignments and subleases Page 6 of ~ ~- ~~, A~ ~ L~s~ ~~ity of~ento~l~ross Timbers Park Lease}~sw~;~~~707] s:lo~r documen~slcontractslD7lcross timbers park lease 11ja~~7 {~mal}.dac must require the assignee or sublessee to assume all of Lessee's obligations under this Lease, but Lessee will remain liable for i obligations regardless of any assignment or sublease by it, loo assignment or sublease will be effective until a certi~.ed copy of the recorded document is furnished to Lessor. ~ 3. Fvree jeure. hauld Lessee be prevented by rea~san of Force a~eure from complying with any express or implied covenant of this Lease bother than a re~ quiren~ent to pay money}, from conducting drilling or reworking operations on the Land, or from producing all or gas, then while so prevented, that covenant will be suspended; Lessee will not be liable far damages for failure to comply therewith; this Lease will be extended o long as Lessee is prevented from can.ducting drilling ar reworking operations an or from producing oil or gas from the Land; and the time while Lessee is sa prevented. will not be taunted against Lessee. "Force ~1a~eure" means any Act of hod, any federal ar state law, or any rule or regulation. of governmental authority, or other similar cause bother than ~cial reasans~. This paragraph is, however, in all things subject to the li- rnitations of time during which this Lease may be continued in farce by the payment of shut-~n gas raya.lties. l4. lea arr~~t~e~. Lessor n~al~es no warranty of any kind with respect to title to the Land, By acceptance of tht.s Lease, Lessee acknowledges that it has been given full opportunity to investigate and has conducted su'ff'icient investigation to satisfy itself as to the title to the Land, and Lessee assumes all risk of title failures. If Lessor owns an interest the Land less than the entire fee simple estate, then the royalties payable he~ reunder will be reduced proportionately. Lessee, at its option, nay discharge any tax, mortgage, or other lien on the Land, and in the event Lessee does sa, Lessee will have the option of applying the royalties accruing to Lessor toward payment of it. 15. ~~rin De~a~lt~. Should Lessee at any tune fail to comply with its obli- gations hereunder regarding construction, maintenance, ar repair within a days after written notice from Lessor, Lessor will have the right to do or have done whatever is ne- cesary to ful~.ll the obligations to its satisfaction, and Lessee shall be liable to Lessor for the reasonable and necessary expenses thus incurred by Lessor, to be paid within ten days after Lessor furnishes to Lessee an itemised written statement of the expenses, I . oti~. All notices will be deemed given and reports will be deemed. de- livered if sent by cer~if~ed letter, return receipt requested, properly addressed and depa~ sited in the United Mates Pasta.l service, postage prepaid, to Lessor and Lessee at the ad- dresses shown for each party. Any porky may designate a new address by proper notice to the other party or porkies. l7. A~torney'~ ~ee~. In the event that Lessor is required to employ legal counsel for the enforcerrlent of any provision of this Lease and prevails, Lessor will be entitled to recover from Lessee reasonable attorney's fees and expenses incurred by Les- sor. Page 7 of ~ 3. 4~ A~vn G L~ pity of DentonlCrvss Timbers Park Leap} [s~h;0~2707~ s.leu~r docume~#sleo~tractsl071cross timbers park lease 1 l~un~7 ~~~}.dac 1 , I~suraace ~~gr~irem~~t~. Lessee shall provide ar cause to be provided the insurance described below far each well drilled under the terms of this Lease? such insurance to continue until the well is abandoned and the site restored. Such insurance shall provide that Lessor shall be a ca-insured, without cost, and that said insurance can not be canceled or terminated without thirty ~3 a~ days prior native to Lessar and ten ~ 1 a} days notice to Lessar for nonpayment of premiums. a. ever ~quire~~n. I~demca~on and E~p~ l~eglience Prv- V~1Q~S. LESSEE shall expressly release and discharge, all clans, demands, actions, judgments, and executions which it ever had, or now have ar may have, or assigns may have, or claim to have, against the LESSOR, It agents, officers, servants, successors, as- signs, spanso~rs, volunteers, ar en~playees, created by, ar arising out of personal Injuries, known or unknown, and in j cries to property, real ar personal, ar In, any ~vay incidental to or m connection with the performance of the oil and gas drril~ng and production per- formed by the LESSEE under this lease and the LESSEE shall fully defend, protect, in- demnify, and. bald harmless the LESSOR, andJor its departments, agents, officers, ser- vants, en~playees, successors, assigns, spar~sars, or volunteers from and against each and every claixn, demand, ar cause of action and any and all liability, damages, obligations, ~udgrnents, losses, fines, penalties, casts, fees, and expenses incurred in defense of the LESSOR, andlor its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by LESSEE, Its agents, assigns, ar any third parties on account af, aris- ing out af, or in any way incidental to ar in connection with the performance of the ail and gas well drilling and production performed by the LESSEE under this lease and, the LESSEE agrees tv indemnify and hold haxtnless the LESSOR, andlor its departments, andlor 1tS afI"1Cers, agents, servants, employees, successors, assigns, sponsors, ar volun- teers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the LESSOR andl~r, it's depar~naents, it's officers, agents, servants, ar employees, created by, or arising out of the acts or omissions of the LESSOR occurring on the drill site or operation site i~ the course and scope of inspecting and p~rrr~rtting the gas v~ells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARIS- ING ~ WHOLE OR IN PART FROM THE NEGLIGENCE OF THE LESSOR OC- CURRI~IG ON THE DRILL SITE OR OPERATION SITE TN THE COURSE AND SCOPE OF IT'S DUTIES UNDER THIS LEASE,. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN IN- DEMNITY EXTENDED BY THE LESSEE TO TNDEMI~IFY AND PROTECT THE LESSOR ANDIOR ITS DEPAR11rIENTS, AGENTS, OFFICERS, SERVANTS, OR EM- PLOYEES FROM THE CONSEQUENCES Off` THE NEGLIGENCE OF THE CITY OF DENTON, TEAS ANDIOR ITS DEPARTMENTS, AGENTS, OFFICERS, SER- vANT, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANTANT INJURY, DEATH, ANDIOR DAMAGE, BUT NOT IN 'THE EVENT OP GROSS NEGLIGENCE ANDIOR wILL- PU~L MISCONDUCT, Pay of 13- Q~ A~ Gas Ise ~~it~ ofDentanl~ross T~nb~rs Park Lease}[swh,;D22~~7] s:lour ~ocume~#~Icon~racts1~71cross ~imb~rs park lean 11 j~~? ~fuia~}.~o~ b. All policies shall be endorsed to read "THIS POLICY wILL NOT BE CANCELLED OR NON-RENEWED wITI~OT ~ DAB ADVANCED WRITTEN NOTICE T`0 TIDE LESSOR AND T Cl'~Y EXCEPT wI~EN TI~I POLICY I BE- ING CANCELLED FOR NONPAYMENT ~~ PRE11riIU, IN wI~ICH CASE I a DAYS ADVANCE WRITTEN NOTICE IS REUIRED'~. c. Lrab~llty pollc~es shall be writ~n by carriers licensed to do business ~n Texas and with companies with A; VIII or better rating in accordance with the current Best fey Rating guide. d. Liabrl~ty policies shall name as "Additional Insured" the city and its offi- cials, agents, employees, and volunteers. e, Certificates of insurance must be presented to the City ev~der~c~n all co- verages and endorsements requixed by Section ~ 5.~2. ~ of the Denton Develap~nent Code as now written or as further amended, and the acceptance of a certificate without the re- quired limits andlor coverages shad not be deemed a waiver of these requirements, f. Claims made policies will not be accepted except far excess policies or unless otherwise provided by this Article. g. Rewired Insurance overage. 1. Commercial General Liability Insurance. Coverage should be a rninin~~un1 Camb~ned Single Lln'~lt of ~,~a0,aaa per occurrence for Bodily Injury and Property Damage. This coverage must include premises, op- erations, blowout or explosion, products, completed operations, blar~et contractual, liability, underground property damage, broad farm property damage, independent contractors protective liability and personal injury. ~. Environmental Impairment for Seepage and Pollutian~ shall be ei- ther included in the coverage or written a separate coverage. Such cover- age shall nat exclude damage to the lease site. If Environental Ipair- ent for Seepage and Pollution} Co~rerage is written on a "claims rr~ade" basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. overage shall a Ito pp y sudden and non~sudden pollution conditions resulting from the escape or release of smol~e} vapors, fumes, acids, alkalis, toxic chemicals, li aids or ~. uses, waste material or other irritants, contaminants or pollutants. . Automabiie Liability Insurance. lirZirnum Combined Sin le Lhn~ it of aa,0~~ per occurrence far Bodily Injury and Property Damage. Such coverage shall include owned, non-owned, and hired vehicles. Page 9 of ~3- U¢, A~ GAS LFdRF City of Dentonl~ross Timbers Park Lease}~swh;42~707] s:~au~ documentslrontractsl~'71c~oss timbers dark l~~se 11ju~0? final}.doc 4, worker's ~ompensatian Insurance. ~n addition to the min~mutn statutory requirements, coverage shall include Employer's Liability li~ its of at least $ ~ Oa,~aa for each accident 1 ~~,Oaa far each employee, and a ~a,a~a policy limit far occupational disease, and the insurer agrees to waive rights of subrogation against the city, its officials, agents, en~~ ployees, and volunteers far any work performed far the city by the L~- ~E. 5. Excess {or ~.J~nbrella} Liability Insurance, ~nin~,u limit of $ I ~,aa~,~0~ covering in excess of the preceding insurance policies. ~, on~ol of well insurance. a, Minimum limit of ,~~a,0aa per occurrence. b. Policy shall cover the host of controlling a well that is out of control, Redrillin or Restoration expenses, seepage and Pollution Damage, Damage to Property in the LEI~~'s dare, custody, and on- trol with sub-limit of 5~a,~~~ may be added. 19, Di~pu~e ~e~olr~tian, the event of dispute under this Lease, the parties agree to attempt to resolve the dispute through good faith mediation to be held in Denton bounty, Texas. ~~, 1Vice1[~nevu~ Provions. ~a} ~n the event this Lease expires for any reason as to all ar any part of the Land, Lessee shall, within ~0 days thereafter, fish Lessor with a written, record- able release covering all of the Land or that portion of the Land to be released, fib} nothing in this Lease negates the usual implied. covenants imposed upon Lessee, ~c} Lessee will conduct ail operations hereunder ~, compliance with the rotes of the Railroad ammission of Texas and federal and state envixonmental laws and regulations. Lessee will give Lessor at least ten days prior notice in writing before conducting drilling, recampletion, or reworking operations under the Land. upon request by Lessor, Lessee shall f~unish. to Lessor copies of applications to drill, daily drilling re- ports, well tests, completion reports, plugging records, gas purchase contracts, and pra- duction reports. Lessor has the right, personally or by representative, at Lessor's risk, of access to the. derrick Haar to observe all operations on all wells drilled on the Land. Les- sor will have the right to inspect and take samples of all cores and cuttings and witness the taking of all logs and drill stem tests, and Lessee agrees to fi~rnish Lessor with copies of all logs and surveys taken promptly after taking them. Lessee will divulge to Lessor correct lnfarmatlan~ as requested by Lessor a to each well, the production therefrom, and such technical information as Lessee m.ay acquire, Lessor has the right to be present Page 1 ~ of ~ ~- Q~ A~ GAS s~ {City ofDento~Cross Timbers Park Lease}~swh;~~27~'~ s:laur documen~slcvnt~cts~~7lcrass #~mbers k lease ~ 1 jun07 (mat}.dac when wells or tanks are gauged and productian metered and has the right tv examine all run tickets and to have full information s to production and runs anal to receive copies of all run tickets upon request. ~d} The term "production" means production in paying quantities, loo obligation of Lessee to pay money under this Lease will be excused ar delayed by reason of Farce aj cure. Lessee's obligations to pay money under this Lease are to be per- formed in Denton bounty, Texas. paragraph headings are used in this Lease far conveni- ence only and are not to be considered ~. the interpretation or construction of this Lease. The execution or ratification by Lessor oB any division order, gas cantrat, or any other document will not alter any provision of this Lease unless the intent to da sa is expressly stated in the document, Lessee agrees to Burnish to Lessor a copy of each title opYriion or report obtained by Lessee that covers all or any part of the Land together with a copy of each title curative dacu~nent obtained by Lessee. ~e~ Lessor shall have the right to inspect all records oB Lessee relating to this Lease, operations conducted on the Lease, the sale and marketing of production from the Lease, and the payment of royalties, including the right to audit Lessee's books insofar as they relate to the foregoing, ~~ C~mpc~ ~vit~ ~ri~n~ ordinance. Lessee shall, before dritling any well which contains any of the Land in the well's dulling unit or pooled unit, comply with the pity of ~enton's ordinances to include, but not limited to having a final approved plat. ~g~ This Lease is binding upon and for the benefit of Lessor, Lessee, and their respective heirs, personal representatives, successors, and assigns. 21. ~+Iemor~ndnm of Leese. As evidence oB this Lease, Lessor and Lessee agree in its stead, to enter rota and retard in the Real Property Records aB Denton oun- Texas a ~~-I~RANDUM o~ L~AE. executed on the date first written above. LESSER: CITY o~ D~~T~N,'I~x~~~ a Name rule municipality E~RCrE . CAFB~LL, IT'Y AI~A~R gage 11 of i3-0~ A~ Gas ~~ ~Cit~ ofDento~fCross Timbers dark Lease}[swh;0~2?~T~ s;lour documentsl~~tractsl~7~cross timbers park lease 1 ~ jun07 ~fin~~).doc Al ~ET~ JENNIFER WALTER, IT E~RETARY BY; APPR~'ED A. T~ LEGAL FARM; EI) NYDER, ITS ATTORNEY BY: STATE OF TEXAS § COUNTY OF DENTON § Before tee. the under~ned notary public, on this day personally appeared EIRE AM.PBELL, the pity N~anager of the QTY F ~]ENTN, ~ha is knan to .e to be the person ~ha~e name i~ subscribed to the foreaing ~nstrurnent, and acknowledged to me that she executed that instrun~.ent far the purposes and consideration therein expressed Given under my hand and seal of afI"iee this day of ~a~?. Natary Public, State of Teas Page 12 of 13 - U~ Axe G L~ (City o~Denta~ICrass Ti~~er~ Park Lease}~swh;D2~~?47] s:lot~' dacume~~slc~ntractslU'7lcross tirp~e~s park lease 11j~n0'~ ~fi~a~}.doc LEE: STATE OF TEXAS § COUNTY OF § END~A~~R N~RGY ~E~~C~, L.P. BY; PRATED NAME: APA~~TY: Befare nee, ,the undersigned notary pubiie, an this day persanaiiy appeared the of endeavor energy Resources, L.P. mho is kna~vn to ~ to be the person ~rhase nave is suhser~hed to the foreg~i~ instrument, and ac~ knaledged to nee that helshe executed that i~astru~nent far the purposes and cansldra- tiontherein expressed. ~xiven >~nder my hand and seal of af~ce this ~ day of , .Da7. Notary Public, Mate of Texas Page ~3 of ~ ~- UII, AND CEASE ~~ity ofDen~anlCross Ti~be~s Park ~~ase)[swh;~22747~ s:lo~r ~acamentslcant~ract~l0~lcross timlaers dark lease ~ 1 jr~n07 (final}.doc ~_ ~j~ . ~'f ~~~~ /' h .. Y~ ~ ~ # . ~/ ]Y ~ ~ 1 ~ ~ ~ ~ Y ~~~~ ~ i a~ ~~tt~~ bra '~'in~~~~ ~, ~e~ ~~ ~. t~ R~~ ~f et~~s; ~T.~ r€ar~.~~. ~~ '~a~~e ~3 ~?, ~:~ ~ ~ o ~~ .~ ~r~~~ ~ord~ of ~n.~~ ~~~~, T ~~ ~€~ ~~~ a ~~ ~~~ ~~ ~I~c ~~ ~~ ~` ~~ ~, BIB ~ ~:~ ~c ~~ a~ ~~.n ~~ ~~ ~~.t ~~~~~ox~. ~~ ~~~~~ ., gage ~ ~~' ~~ '~~~ ~~~r~ ~` ~~t~ ~~~~, 7`e~~; n~ b~~~; ~~~ p~c~.~~ .. ~~~~r~~~ ~ ~olla~~~. ~v ~~~ ~~ ~~ ~~ ~~~ ~o~~r ~ ~~~~ ~ ~ ~~~~ ~c~~ ~~a~~ ~n ~~~ ~~~ ins ~~ ~ c~~~~ ~f ~~ ~a~ ~.~ l ~ ~~~~ ~.~e~~~ ~.~ ~e~ Ana ~~.~ ~~~ o. ~~ ~~~~o~ ~ ~ ~.~'~~ ~~e ~t ~ t~ eat ~~~ ~~ ~.~ ~~d ~~,~ ~ ~ ~ra~ ~ ~t~~~ ~~ ~~.~ ~~~ ~~ a ~~ ~~. ~ ~~~ '~un~ ~~ t~ ~u~ht c~rne~r ~~a~' a~~ t~~ ~~~~ c~~r ~f ~t~ :~ ~~t ~.~~~r~ ~~~ o ~,~~ ~~ .~~:~t~ ~~~~~d ~~r~t :cam ~~ ~ 4;~~ air ~t ~~ ~Te~t ~~~~ ~~~f, ~~ . ~~t~ce ~f ~~~~ ~~~ ~~ ~ ~~.~~~~~~ off' ~ car ~~ ~~~ ~~f ~~n ~ ~. N~~t .~D I~~~~ ~ ~~~~ ~ ~a~ ~ ~ .~~~~ ~ ~..~ foot to ~ ~~~ ~~~~~ ~~~r~~~; ~d~ta ~~ ~~.~ .f~t-~~ ~~ ~o.h ~~o ~ ~.~~e~~`.~ tie o~~~~~ ~~~~r f ~~~ ~~~ :~~~~ ~ of a~~ ~~~ ~.~ use ~; ~~ ~~ort ? ~ ~~~ ~ ~~~~ ~ end ~~~ ~~~~ t~ ~'~~~ ~~~~ ~ Lit ~ a of Lit 3~ ~ ~~~~~~ ~` ~~ ~.1 f~~~ ~~ ~~rt~~t c~r~er ~~e~~, ~~i~ of ~~~. ~~ ~~ ~~ i~ of ~~~~~t~~, "~ ~~~~~~d ~~ '~~~.~ ~~~~, ~a~ ~~~; ~'~~ So~~ ~~ ~~~e~ ~~ ~~~~~~~ 3 ~ ~~~.~ ~~~ ~~ ~ ~ din ~f Lot ~~ ~ ~~ ~~~~ ~ ~~~~~o~'~~ co~.t~~.~~, ~ ~~ ~~t ~~~t~n~e ~f ~,~ ~'~~ ~ ~~ p'. ', r v ~ ~"~ ,f .~'~ ~gg,, ~~yy r ~ o- N. r ~k{' ~ y 0 ~: a ' '~"n 9~ ~ ~W ~{ ~... ~~*+J~~L9'~ 1~~~4 ^ ^ ^ i -ff.+~~1 ~R 3 y ~~ r~ ~~ ~ ~~~ ~-~ ~. L~~ 39, BLOCK # ~ ~ ~~' RYA RANCH ~' PHASE ~ CAS, R, 12B ~ ~1'48'~4" E 266.9' , N a~~~7'0~# E 60.0' ~ CREEKDALE DRIVE N 28'03'30" E 373. ~ W r ° ~ ~ • ~``~~~,~. a~ ~~~~~, o ~ i 0'19'04" V~ 342.3' R=1i3O,0' L=217.7' ~~_ ~ 0~~~7'~6"yl~ ~~~.~' ~~ ^ , ~ R=113~.~' CH= N 06`00'48"E 208.5' TRACT 5 0 19,45 ACRES ^ 11 r ,~ ~~~ LOS' 23, B~.OCK E ~ ~ ~' ~ RYAN RANCH ~ CHASE 1 CAB. 5, P. S20 ~ o ~ ~.,D.C.r. ~ ~ ~ ~ ~ u~ ~AI~IARI'~AN SCOC~~'lt D~ ~10lIX ~AE~S~ S~~JTH ~AKOtA CITY D~ ~~ ^V~ ~i~ ri W +4 "i.AI~E FBR~ST ~AR(C" ?~ 86'3'21" E 253.5' ~... ~... °a ~ cum ~1~ ~c~s ~c~ g~tc~c ~, ~~~avo~ ~r ~ur~~s rn C.F,N. 2~,S~f 61~'~4 ti~~~~ N 89'48`5i" Y~ 620, OAKS BF ~CITo ~,~,~~~ X48. ~, P. 367 LASE ~x~~BIT TRACT 5 ACME M ECAUNIT c QTY o~ ~~NT~~ ~~NTON COUNTY, TEXAS DRAINS CF JOB ~: ~ 375 CH~C~ED: WMC DATE: ~-23-07 REVlS~D~ ~/A cA~; ~ ~ ~ 3oa" EXHIBIT A2 ~~ ,,~~• 4 a s~ ~~ N Coleman & Associates ~ sa 60o Land Surveying P. 0. BOX 68$ DENTON, TEXAS 76202 PH(B4Q~565-8215~FAX (940)565-9800. 0 5a 3pp www.co~~u~suRV~nr~c.co~ ~ 2oay co~quua ~ assoc. susrre~No