The URL can be used to link to this page

Home My WebLink AboutOctober 02, 2007 Agenda AGENDA CITY OF DENTON CITY COUNCIL October 2, 2007 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, October 2, 2007 at 4:30 p.m.in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1.Requests for clarification of agenda items listed on the agenda for October 2, 2007. 2.Hold a discussion and give staff direction regarding the 2008 Council meeting schedule. 3.Receive a report from the Denton County Geriatric Services Workgroup regarding the current and proposed activities of Denton County Senior Services. Hold a discussion regarding the impact of these activities on the senior community and the city. 4.Receive a report, hold a discussion, and give staff direction regarding a proposed resolution to facilitate certification of a Municipal Setting Designation for property located at the southwest corner of Interstate 35 and Highway 380. NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, including without limitation, Sections 551.071-551.086 of the Texas Open Meetings Act. However, the Council reserves the right to take action at the meeting regarding any item on the agenda. Regular Meeting of the City of Denton City Council on Tuesday, October 2, 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 state under God, one and indivisible.” 2.PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Consent Agenda. Citizen comments on Consent Agenda items are limited to three minutes. City of Denton City Council Agenda October 2, 2007 Page 2 Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – I). 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 – I below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. Consider adoption of an ordinance authorizing the City Manager to execute the second amendment to professional services agreement by and between the City of Denton and T. R. Edgar & Associates; providing for the expenditure of funds therefor; and providing an effective date (approval of professional services agreement by the City Manager on February 7, 2007; approval of first amendment to professional services agreement on the 18th day of July, 2007 by the Purchasing Department; now the second amendment to professional services agreement for the additional professional services of T.R. Edgar & Associates – in the amount of not to exceed $19,200; for the total amount authorized of $118,700). B.Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of sand, soil, lime and aggregate for various City departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3850–Annual Contract for the Sand, Soil, Lime and Aggregate awarded to the lowest responsible bidder meeting specification for each item in the estimated annual amount of $2,000,000). C.Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the rental of heavy equipment for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3851–Annual Contract for Rental of Heavy Equipment awarded to the lowest responsible bidder meeting specification for each item in the estimated annual amount of $750,000). D.Consider adoption of an ordinance accepting requests for proposals and awarding a contract for the purchase of Individual and Aggregate Stop Loss Insurance for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFP 3832–Individual and Aggregate Stop Loss Insurance awarded to ING Employee Benefits with a cost of $41.70 per employee per month for an estimated annual cost of $521,917.20). E.Consider approval of tax refunds for the following property taxes: Tax Name Reason Amount Year 1.Auto Zone DCAD Supplemental Change 2006$ 686.89 2. Auto Zone DCAD Supplemental Change 2005 $ 648.81 F.Consider adoption of an ordinance authorizing the City Manager or his designee to cancel the balance of the non-performed portion of Purchase Order No. 123460 to Jamail Construction Company and pay over the funds held as retainage City of Denton City Council Agenda October 2, 2007 Page 3 by the City of Denton to Jamail Construction Company, and to deny the proposed Change Order No. 2 submitted by Jamail Construction Company for the design- build of the landfill scale house; authorizing the Purchasing Department and the Solid Waste Department to re-bid the construction phase of the landfill scale house project; and providing an effective date (cancellation of the balance of Purchase Order No. 123460 to the non-performed portion of the purchase order to Jamail Construction Company regarding the landfill scale house project, and payment of the remaining retainage amount held by the City of Denton over to Jamail Construction Company). The Public Utilities Board recommends approval (6-0). G.Consider a request for an exception to the Noise Ordinance for the purpose of the United Way Masquerade Ball and Halloween Event, sponsored by NUCONSTEEL Commercial Corporation. The event will be held at the County Courthouse-on-the-Square on Wednesday, October 31, 2007, from 6:00 p.m. to 10:30 p.m. The exception is specifically requested to increase hours of operation for amplified sound from 10:00 p.m. until 10:30 p.m. and to increase the allowable decibels for an outdoor concert from 70 to 72. H.Consider approval of the minutes: August 21, 2007 I.Consider approval of a resolution of the City Council of the City of Denton authorizing the acceptance of deed restrictions prohibiting the use of designated groundwater from beneath the property, containing approximately 8.2424 acres located at the southwest corner of Interstate 35 and US Highway 380, Denton, Texas as described in Exhibit “A,” to facilitate certification of a Municipal Setting Designation (“MSD”) of said property by the Texas Commission of Environmental Quality (“TECQ”), pursuant to the Texas Solid Waste Disposal Act; and providing for an effective date. 4.PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance regarding a Specific Use Permit for a Semi-public, Halls, Clubs, and Lodges use which includes a fraternity or sorority house. The site is at the southeast corner of West Oak Street and Miller Street and is located within a Neighborhood Residential 3 (NR-3) zoning district.(S07-0011, Chi Alpha House) The Planning and Zoning AC Commission recommends denial (6-0). SUPERMAJORITY VOTE BY OUNCIL IS . REQUIRED FOR APPROVAL B. Hold the first of two public hearings to consider, under the annexation procedures for areas exempted from the municipal annexation plan, the annexation and service plan for approximately 835 acres. The property to be annexed is generally located west of the Elm Fork tributary of the Trinity River, east of Collins Road, and north of US 380.(A07-0005, Clear Creek Natural Heritage Area Annexation) City of Denton City Council Agenda October 2, 2007 Page 4 C. Hold the first of two public hearings to consider the voluntary annexation and service plan for approximately 0.123 acres of land, contiguous and adjacent to the City of Denton generally located to the northeast of F.M. 2181/ Teasley Lane, west of Old Alton Road in the southwestern portion of Denton’s Extraterritorial Jurisdiction (ETJ). (A07-0004, Wild Mustang Crossing Annexation) D. Hold a public hearing and consider adoption of an ordinance regarding an amendment to Subchapter 35.7.11.3.D of the Denton Development Code (the Unicorn Lake Overlay District) regarding “Minimum House Size”. The Unicorn Lake Overlay District is generally located on approximately 47 acres south of Wind River Boulevard and west of Unicorn Lake Boulevard. The property is located within a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district.(Z07-0022, Unicorn Lake Overlay District Amendment) The Planning and Zoning Commission recommends approval (4-0). 5.ITEMS FOR INDIVIDUAL CONSIDERATION A.Consider approval of a resolution by the City Council of the City of Denton, Texas, supporting the Community Development Block Grant Program and providing an effective date. B.Consider approval of a resolution of the City Council of the City of Denton, Texas, authorizing the Mayor, as representative of the City, to issue a letter designating the Denton Committee on People with Disabilities for the purposes of promoting aid to disabled persons in the City of Denton; and providing an effective date. C.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving guidelines for operation of the City of Denton Home Improvement Program and eligibility criteria; authorizing expenditures in excess of $25,000 for projects meeting program guidelines and criteria; and providing for an effective date. D.Consider approval of a resolution by the City Council of the City of Denton, Texas supporting the Home Investment Partnerships Program and providing an effective date. E.Consider adoption of an ordinance providing for the sale of real property located at 816 Allen Street as a part of the City’s Infill New Construction Program for affordable housing for sale to low-moderate income buyers; and providing for an effective date. F.Consider approval of a resolution authorizing the city staff to develop an environmentally preferable purchasing policy regarding its public purchasing activities to the extent it is available, to the extent it is practicable, and to the extent reasonably permitted by the Texas state purchasing laws. City of Denton City Council Agenda October 2, 2007 Page 5 G.Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of the "City of Denton Certificates of Obligation ($7,065,000), Series 2007A"; authorizing the issuance of the certificates of obligation, approving and authorizing instruments and procedures relating to said certificates of obligation, and enacting other provisions relating to the subject. H.Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Regional Recyclables Processing Agreement with Visy Recycling, Inc. (d/b/as Pratt Recycling) providing for the construction and operation of a Materials Recovery Facility (“MRF”) located at the City’s landfill; providing additional authority to the City Manager to execute a lease agreement and any other related document; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0). I.Consider approval of a resolution nominating members to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. J.Discuss and consider approval of the creation of a temporary ad hoc committee of the city council to include Joe Mulroy, Chris Watts and Charlye Heggins to study and review code enforcement related issues. K.Consider nominations/appointments to the City’s Boards and Commissions. L.Citizen Reports 1.Review of procedures for addressing the City Council. 2.Receive citizen reports from the following: A.Jerry Yensan regarding the infill ordinance. B.Gerald DeMarsh regarding the annexation of property on Riverside Drive. C.Donna Woodfork regarding diversity with public relations publications. M.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. N.City Manager’s Report O.Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. P.Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. City of Denton City Council Agenda October 2, 2007 Page 6 C E R T I F I C A T E 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 IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY’S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: City Manager’s Office CM: George Campbell, City Manager SUBJECT Hold a discussion and give staff direction regarding the 2008 Council meeting schedule. BACKGROUND Looking forward to the 2008 calendar year, the City Council meeting schedule has been prepared for Council consideration allowing for fourth and fifth Tuesdays and conference schedules. Following the request from Council, no meetings have been designated for the Tuesdays following a Monday holiday. Monday luncheon meetings that fall on the second Monday of the month have also been eliminated. The budget calendar has been incorporated into this schedule th with only the August 7 budget workshop session falling outside a scheduled meeting. A January 7, 2008 Council mini-retreat has also been added for consideration. Respectfully submitted: Jennifer Walters City Secretary ùóèãùíçîùóðï÷÷èóîõøûè÷é Tuesday January 1 New Year’s Day Holiday îÍï××ÈÓÎÕ Monday January 7 ùÍÇÎÙÓÐöÍÐÐÍÅÇÌÊ×ÈÊ×ÛÈ Tuesday January 8 SC Work/Regular Session Tuesday January 15 2 Tuesday Session nd Tuesday January 22 Martin Luther King, Jr. Day, 1/21 –– USCM 1/23-25 îÍï××ÈÓÎÕ Tuesday January 29 îÍï××ÈÓÎÕ Monday February 4 Luncheon Tuesday February 5 Work/Regular Session Tuesday February 12 2nd Tuesday Session Tuesday February 19 Work/Regular Session Tuesday February 26 îÍï××ÈÓÎÕ Monday March 3 Luncheon Tuesday March 4 Work/Regular Session Tuesday March 11 NLC, Washington, DC, 3/8-12 îÍï××ÈÓÎÕ Tuesday March 18 Spring Break, 3/17-21 îÍï××ÈÓÎÕ Tuesday March 25 îÍï××ÈÓÎÕ Tuesday April 1 Work/Regular Session Monday April 7 îÍðÇÎÙÔ×ÍÎ Tuesday April 8 2nd Tuesday Session Tuesday April 15 Work/Regular Session Tuesday April 22 îÍï××ÈÓÎÕ Tuesday April 29 îÍï××ÈÓÎÕ Monday May 5 Luncheon Tuesday May 6 Work/Regular Session Tuesday May 13 2nd Tuesday Session Tuesday May 20 Election Meeting Installation of CC Members Only Tuesday May 27 îÍï××ÈÓÎÕ Monday June 2 Luncheon Tuesday June 3 Work/Regular Session Tuesday June 10 2nd Tuesday Session Tuesday June 17 Work/Regular Session Tuesday June 24 TCMA, Arlington, 6/27-29 îÍï××ÈÓÎÕ Tuesday July 1 July 4 Holiday th îÍï××ÈÓÎÕ Monday July 7 îÍðÇÎÙÔ×ÍÎ Tuesday July 8 Council Recess îÍï××ÈÓÎÕ Tuesday July 15 Work/Regular Session Tuesday July 22 îÍï××ÈÓÎÕ Tuesday July 29 îÍï××ÈÓÎÕ Monday August 4 Luncheon Tuesday August 5 Work/Regular Session Thursday August 7 Budget Workshop Tuesday August 12 2nd Tuesday Session Tuesday August 19 Work/Regular Session Tuesday August 26 îÍï××ÈÓÎÕ A meeting is designated as “Special Called” because it falls on a day other than the first and third Tuesday. Months in purple have only one action meeting. Second Monday luncheons have been designated as “No Luncheon”. First Monday luncheons remain the same. ùóèãùíçîùóðï÷÷èóîõøûè÷é Monday September 1 Labor Day Holiday îÍðÇÎÙÔ×ÍÎ Tuesday September 2 îÍï××ÈÓÎÕ Tuesday September 9 SC Work/Regular Session Tuesday September 16 Work/Regular Session Tuesday September 23 SC Work/Regular Session ICMA, Richmond, 9/19-24 Tuesday September 30 îÍï××ÈÓÎÕ Monday October 6 Luncheon Tuesday October 7 Work/Regular Session Tuesday October 14 2nd Tuesday Session Tuesday October 21 Work/Regular Session Tuesday October 28 TML, San Antonio, 10/29-31 îÍï××ÈÓÎÕ Monday November 3 Luncheon Tuesday November 4 Work/Regular Session Tuesday November 11 NLC, Orlando, 11/11-15 îÍï××ÈÓÎÕ Tuesday November 18 îÍï××ÈÓÎÕ Tuesday November 25 Thanksgiving Holiday, 11/27-28 îÍï××ÈÓÎÕ Monday December 1 Luncheon Tuesday December 2 Work/Regular Session Tuesday December 9 SC Work/Regular Session Tuesday December 16 îÍï××ÈÓÎÕ Tuesday December 23 Christmas Holiday, 12/24-25 îÍï××ÈÓÎÕ Tuesday December 30 îÍï××ÈÓÎÕ A meeting is designated as “Special Called” because it falls on a day other than the first and third Tuesday. Months in purple have only one action meeting. Second Monday luncheons have been designated as “No Luncheon”. First Monday luncheons remain the same. S:\Lists\2008 CC Mtg Dates.doc [Revised 09/25/07] AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development ACM: Howard Martin, 349-8232 SUBJECT Receive a report from the Denton County Geriatric Services Workgroup regarding the current and proposed activities of Denton County Senior Services. Hold a discussion regarding the impact of these activities on the senior community and the city. BACKGROUND A coalition was formed in 1998 in response to the closure of a university-operated community- based perinatal clinic and reports of alarming increases in infant mortality rates for Denton County. The coalition became the Healthy Communities Coalition of Denton County with the purpose of addressing unmet health-care needs. After incorporating feedback from work-groups, the Coalition held a county-wide public hearing to engage communities and their leaders in the vision to achieve "100% Access and Zero Disparity" in affordable health care for the County. The current Denton County Senior Services work-group consists of the leadership and constituency of key geriatric services providers in the County. The participants include senior advocates and consumers, and the leadership of hospitals, nursing homes, assisted living, senior housing, adult day services, senior centers, home health care, independent care management, law enforcement and adult protective services, social services, mental health and mental retardation, the area agency on aging, and two universities. DCSS works to identify issues affecting the wellbeing of senior residents of the County. The most pervasive deficits in the current system include the shortages of appropriate and affordable housing alternatives and severe shortages of direct care workers throughout the County. These findings support the need to conduct strategic planning to improve long term care/supportive services in Denton County. In 2004 a “Denton County Senior Services” website was created to serve as an organizing and service connection tool. In 2005 and 2006 the group concentrated on two priorities: sustainable, affordable housing alternatives and direct care initiatives. Housing and Training taskforces were created to deal with these priorities. Also in 2006, a Texercise group formed to support a pilot Texercise program called Denton Texercise Two-Step: Exercise and Nutrition Education. The Housing taskforce conducted a successful Housing Summit for Denton County, participated in UNT's High Performance Green Building Conference featuring HUD and EPA. In March, housing taskforce speakers participated in the TX State Conference on Aging. In January 2007, an advocacy group was created. Legal, guardianship, transportation, services funding and potential for service fragmentation due to changing demographics, along with mental health service needs, increased need for Alzheimer's care, utility assistance and home modification and weatherization needs issues arose in meetings of the group. The presentation will include information on the following issues: The necessity for collaborative planning and creation of a collaborative planning agenda. Complementary relationships between elder friendly and senior ready. Extension of housing, services, and transportation opportunities as priority needs for community support. Implications for the City of Denton. ESTIMATED PROJECT SCHEDULE DCSS activities are ongoing. PRIOR ACTION/REVIEW (Councils, Boards, Commissions) N/A FISCAL INFORMATION Funding for organizational activities is provided through donations and fundraising. EXHIBITS N/A Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: Barbara Ross Community Development Administrator AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Economic Development CM: George Campbell ________________________________________________________________________ SUBJECT Receive a report, hold a discussion, and give staff direction regarding a proposed resolution to facilitate certification of a Municipal Setting Designation for property located at the southwest corner of Interstate 35 and Highway 380. BACKGROUND th In 2003, the 78 Texas Legislature passed a Municipal Setting Designation (MSD) law concerning requirements for removing contaminants from groundwater. The law authorizes the Texas Commission on Environmental Quality (TCEQ) to receive, process, and certify MSD applications for properties with contaminated groundwater that are located within the corporate limits or extraterritorial jurisdiction of municipalities. However, the TCEQ will only certify MSD applications if there is municipal support, which is typically demonstrated through a municipal resolution or ordinance. Because of this requirement, any person who wishes to pursue State certification of an MSD must gain municipal support. The MSD law provides a new alternative for persons who wish to voluntarily address groundwater contamination. In effect, the MSD law sets conditions for MSD property designations that limit the requirements for contaminated groundwater to be remediated to potable water standards. MSDs are applicable in cases where the designated groundwater is not currently used for potable water, and establish restrictive conditions that prohibit the future use of designated groundwater for potable purposes. This prohibition must be in the form of a restrictive covenant or ordinance that is enforceable by the City and filed in the property records The purpose of the MSD law is to provide a less expensive and faster alternative to existing state environmental regulations concerning groundwater. In general, the MSD law recognizes that in some locations, no one is using groundwater as a potable water source in the vicinity of a contaminated groundwater zone. The law further recognizes that use of the designated groundwater as a future potable source is unlikely because a public supply that relies on another source of water is available. In such cases, a prohibition is placed on the designated groundwater beneath the MSD property to prevent the use of the contaminated groundwater as a potable source. This MSD thus ensures that public health is protected by establishing a legal mechanism that eliminates the possibility of the designated groundwater being used for potable purposes. It is important to note that in addition to municipal support, the MSD is subject to all the additional requirements of TCEQ’s review and final approval. For example, if there is a well within one-half of a mile of the property that is used as a potable supply, then the extent of groundwater contamination must be determined and remediated in accordance with TCEQ policy. In addition, because both people and ecological receptors (fish, wildlife, etc) can be exposed to contamination in other ways, the law still allows the TCEQ to require investigation and remediation of contaminants for other concerns unrelated to potable water use. Examples of additional exposure pathways include inhalation of vapors originating from the groundwater or the discharge of groundwater into streams. The applicant, Standridge Companies, is seeking approval of a resolution (Exhibit 2) that establishes the terms and conditions of a MSD for the property located at the southwest corner of Interstate 35 and US Highway 380. This resolution indicates the City of Denton’s support of the MSD, and is required for the MSD to be certified by the TCEQ. The resolution sets forth the conditions of the designation, including the applicant’s requirements to establish the appropriate deed restrictions for the property, and will be used by the applicant as evidence of municipal support. However, the applicant is still obligated to meet all TCEQ regulations concerning groundwater contamination, investigation, and remediation actions prior to the TCEQ granting the MSD for the property. OPTIONS 1. Support the current resolution 2. Modify the resolution 3. Do not support the resolution RECOMMENDATION Staff recommends approval of the current resolution PRIOR ACTION/REVIEW (Council, Boards, Commissions) None. EXHIBITS Exhibit 1. Property map Exhibit 2. MSD Resolution Respectfully submitted, AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Human Resources CM: George C. Campbell SUBJECT Consider approval of an ordinance authorizing the City manager to execute the second amendment to professional services agreement by and between the City of Denton and T. R. Edgar & Associates; providing for the expenditure of funds therefor; and providing an effective date (approval of professional services agreement by the City Manager on February 7, 2007; th approval of first amendment to professional services agreement on the 18 day of July, 2007 by the Purchasing Department; now the second amendment to professional services agreement for the additional professional services of T.R. Edgar & Associates – in the amount of not to exceed $19,200; for the total amount authorized of $118,700). BACKGROUND At the August 1, 2006, Council meeting, Council authorized the City Manager to enter into a contract with T. R. Edgar and Associates to conduct a wage and salary survey and design a compensation plan for Electric Utilities as well as conduct a wage and salary survey and begin discussing compensation philosophy and mechanics for the rest of the organization. After review of the work Edgar completed for the Electric Utilities, we determined it would be beneficial to implement a similar plan for the rest of the organization. A memorandum was included in the December 22, 2006, reading file updating the Council on our progress and our recommendation for moving forward with a similar plan for the Water, Wastewater, Solid Waste, and General Fund positions. Upon hearing no objections, we contracted with Edgar to develop a “pay for performance” compensation plan for Water, Wastewater, Solid Waste, and General Fund (the professional services agreement, “Agreement”, is attached). The Agreement included performance feedback training for a limited number of managers and supervisors. We realized additional training was going to be needed, so an amendment was made to the Agreement. The original Agreement was for $95,500. The cost for additional training was $4,000, which increased the total contract to $99,500. The new compensation plan has been developed and will become effective October 1, 2007. Undoubtedly we will have questions with the new plan that will require consultation with Tom Edgar. This second amendment to the Agreement, which will not exceed $19,200, will allow us to retain Mr. Edgar to assist us with these questions. 1 PRIOR ACTION/REVIEW (Council, Boards, Commissions) The issue of compensation has been in front of the Council on various occasions since December 5, 2005. More recently, Council authorized the City Manager to contract with T. R. Edgar and Associates on August 1, 2006, to conduct the services listed above. An update was sent to the Council in the December 22, 2006, reading file. FISCAL INFORMATION The amendment will not exceed $19,200, for a total cost of the contract not exceeding $118,700. The cost of the original agreement and the first amendment was covered by funds authorized by Council for a compensation study in the FY 05/06 and FY 06/07 budgets ($100,000 each fiscal year). EXHIBITS 1.Professional Services Agreement signed by the City Manager on February 7, 2007 2.Modified Agreement Respectfully submitted: ______________________________ Carla Romine Director of Human Resources 2 AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Tom Shaw 349-7100 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual contract for the purchase of sand, soil, lime and aggregate for various City departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3850-Annual Contract for the Sand, Soil, Lime and Aggregate awarded to the lowest responsible bidder meeting specification for each item in the estimated annual amount of $2,000,000). BID INFORMATION This bid is for the annual supply of soil, sand, lime and aggregate utilized by various City departments in the maintenance and new construction of streets, utility lines, street cuts and backfilling operations. These materials are ordered on an as needed basis. RECOMMENDATION We recommend award of this bid to the lowest responsible bidder meeting specification for each item as listed on Exhibit A of the ordinance for an estimated annual amount of $2,000,000. PRINCIPAL PLACE OF BUSINESS Anchor Sports 1, Inc. Chemical Lime Co. BWI Companies, Inc. Richardson, TX Hurst, TX Carrollton, TX Eagle Aggregate Transportation Neese Materials Inc. Martin Marietta Materials Denton, TX Garland, TX Lewisville, TX Red River Sand Co. Tim Beaty Builders, Inc. TXI Denison, TX Denton, TX Bridgeport, TX Items 23 and 28-32a will not be awarded at this time since no bids were received for this item. Bids submitted for Items 24 and 24a did not meet specification; therefore these items will not be awarded. Agenda Information Sheet October 2, 2007 Page 2 ESTIMATED SCHEDULE OF PROJECT This price agreement will be in effect for a period of one year from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. FISCAL INFORMATION Funding for each individual order will come from the appropriate budget or bond account of the using department. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AIS-Bid 3850 ORDINANCE NO. __________ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF SAND, SOIL, LIME AND AGGREGATE FOR VARIOUS CITY DEPARTMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3850-ANNUAL CONTRACT FOR THE SAND, SOIL, LIME AND AGGREGATE AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION FOR EACH ITEM IN THE ESTIMATED ANNUAL AMOUNT OF $2,000,000). 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 therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: ITEM NUMBER VENDOR AMOUNT 1, 2, 3, 20, 33 Red River Sand Co. Exhibit A 1a, 2a, 3a, 20a, 33a Tim Beaty Builders, Inc. Exhibit A 4, 4a, 5a, 7, 7a, 8, 8a, 9, 9a, TXI Exhibit A 12, 12a, 34, 34a 5, 6, 6a, 10, 10a, 11, 11a, 13, Martin Marietta Materials Exhibit A 13a, 14, 14a, 15, 17 23a Neese Materials Inc. Exhibit A 21, 22 Anchor Sports 1, Inc. Exhibit A 25, 26, 27, 27a BWI Companies, Inc. Exhibit A 35, 36 Chemical Lime Co. Exhibit A 16, 18, 19 Eagle Aggregate Transportation 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 WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: _________________________________ 3-ORD-3850 AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Tom Shaw 349-7100 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual contract for the rental of heavy equipment for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3851-Annual Contract for Rental of Heavy Equipment awarded to the lowest responsible bidder meeting specification for each item in the estimated annual amount of $750,000). BID INFORMATION This bid is for the annual contract to supply the rental of heavy equipment to all City departments. From time to time, the City of Denton has a need for heavy equipment to supplement our fleet. This annual agreement will allow us quick access to expensive equipment without the delay of the bid process. In addition, the annual agreement for multiple items lends itself to more competitive pricing than incidental usage. No guarantee of any minimal usage is part of this agreement and each rental will have an individual purchase order. The equipment list consists of the most commonly used sizes and types of heavy equipment. RECOMMENDATION We recommend award of this bid to the lowest responsible bidder meeting specification for each item as listed on Exhibit A of the ordinance for an estimated annual amount of $750,000. RECOMMENDATION No bids were received for Items 5, 32, 40, 43, 53, 57 & 58; therefore they will not be awarded at this time. Equipment Support Services, the apparent low bidder on Items 6 and 16, did not bid the required size or horsepower. Hertz Equipment Rental, the apparent low bidder on Items 8 and 27, did not meet specifications for the minimum horsepower and size required. Bane Machinery, the apparent low bidder on Items 21 and 25, did not meet specifications for the minimum horsepower and size required. B&R Equipment, the apparent low bidder on Item 35, did not meet specifications for the minimum horsepower and size required. Rental One, the apparent low bidder on Item 59, did not meet specifications for the minimum horsepower and size required. Landmark Equipment, Inc., the apparent low bidder on Items 66 and 67, did not meet specifications for the minimum horsepower required. Neff Rental Inc., the apparent low bidder on Item 68, did not meet specifications for the minimum horsepower and size required. Agenda Information Sheet October 2, 2007 Page 2 PRINCIPAL PLACE OF BUSINESS Bane Machinery Hertz Equipment Rental B&R Equipment Fort Worth, TX Frisco, TX Keller, TX Equipment Support Services T-K-O Equipment Co. Romco Equipment Co. Euless, TX Irving, TX Dallas, TX Bobcat of Denton United Rentals Gulf, L.P. Neff Rental Inc. Denton, TX Ft. Worth, TX Saginaw, TX Rental One Howard McAnear Equipment Landmark Equipment, Inc. Fort Worth, TX Fort Worth, TX Irving, TX ESTIMATED SCHEDULE OF PROJECT This price agreement will be in effect for a period of one year from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. FISCAL INFORMATION These items will be charged to the using Departments as needed. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AIS-Bid 3851.doc ORDINANCE NO. __________ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE RENTAL OF HEAVY EQUIPMENT FOR VARIOUS CITY OF DENTON DEPARTMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3851-ANNUAL CONTRACT FOR RENTAL OF HEAVY EQUIPMENT AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION FOR EACH ITEM IN THE ESTIMATED ANNUAL AMOUNT OF $750,000). 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 therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: ITEM NUMBER VENDOR AMOUNT 14-16, 19, 23, 27, 30, 55-56 Bane Machinery Exhibit A 69 Bobcat of Denton Exhibit A 3, 4, 6, 21-22, 25, 33, 34, 36B&R Equipment Co. Exhibit A 38, 39, 41, 42, 44, 47, 52 10, 12, 17, 26, 28, 29, 45, 46, Hertz Equipment Rental Exhibit A 49, 50, 61-66 9, 18, 24, 67, 68 Equipment Support Services Exhibit A 2 Howard McAnear Equipment Exhibit A 59 Neff Rental Inc. Exhibit A 20, 60 Landmark Equipment, Inc. Exhibit A 11 Rental One Exhibit A 54 Romco Equipment Co. Exhibit A 1, 8, 13, 31, 35, 37, 48, 51 T-K-O Equipment Co. Exhibit A 7 United Gulf Rentals, L.P. 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 WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: _________________________________ 3-ORD-3851 Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ ÜÑÆÛÎÍ ïÜ±¦»®ô Ý¿¬ Üïð ±® »¯«·ª¿´»²¬ ï¿É»»µ´§ Î¿¬» ï¾Ó±²¬¸´§ Î¿¬» ï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îÜ±¦»®ô Ý¿¬ Üç ±® »¯«·ª¿´»²¬ î¿É»»µ´§ Î¿¬» î¾Ó±²¬¸´§ Î¿¬» î½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íÜ±¦»®ô Ý¿¬ Üè ±® »¯«·ª¿´»²¬ í¿É»»µ´§ Î¿¬»üíôèííòíí í¾Ó±²¬¸´§ Î¿¬»üïïôëððòðð í½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð ìÜ±¦»®ô Ý¿¬ Üé ±® »¯«·ª¿´»²¬ ì¿É»»µ´§ Î¿¬»üîôêêêòêé ì¾Ó±²¬¸´§ Î¿¬»üèôðððòðð ì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð êÜ±¦»®ô Ý¿¬ Üê ±® »¯«·ª¿´»²¬ ê¿É»»µ´§ Î¿¬»üîôïêêòêé ê¾Ó±²¬¸´§ Î¿¬»üêôëððòðð ê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð éÜ±¦»®ô ÔÙÐ Ý¿¬ Üê ±® »¯«·ª¿´»²¬ é¿É»»µ´§ Î¿¬» é¾Ó±²¬¸´§ Î¿¬» é½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° èÜ±¦»®ô Ý¿¬ ÜëÓ ±® »¯«·ª¿´»²¬ è¿É»»µ´§ Î¿¬» è¾Ó±²¬¸´§ Î¿¬» è½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ çÜ±¦»®ô ÔÙÐ Ý¿¬ ÜëÙ ±® »¯«·ª¿´»²¬ ç¿É»»µ´§ Î¿¬»üïôîíëòðð ç¾Ó±²¬¸´§ Î¿¬»üîôçðêòðð ç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëëðòðð ïðÜ±¦»®ô ÔÙÐ Ý¿¬ Üë ±® »¯«·ª¿´»²¬ ïð¿É»»µ´§ Î¿¬»üïôîëðòðð ïð¾Ó±²¬¸´§ Î¿¬»üíôíððòðð ïð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïèðòðð ïïÜ±¦»®ô Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïï¿É»»µ´§ Î¿¬» ïï¾Ó±²¬¸´§ Î¿¬» ïï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïîÜ±¦»®ô ÔÙÐ Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïî¿É»»µ´§ Î¿¬»üïôïëðòðð ïî¾Ó±²¬¸´§ Î¿¬»üíôïððòðð ïî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïéðòðð ÉØÛÛÔ ÔÑßÜÛÎÍ ïíÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèè ±® »¯«·ª¿´»²¬ ïí¿É»»µ´§ Î¿¬» ïí¾Ó±²¬¸´§ Î¿¬» ïí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïìÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèð ±® »¯«·ª¿´»²¬ ïì¿É»»µ´§ Î¿¬»üîôçèëòðð ïì¾Ó±²¬¸´§ Î¿¬»üèôéðëòðð ïì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð ïëÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêê ±® »¯«·ª¿´»²¬ ïë¿É»»µ´§ Î¿¬»üîôèèëòðð ïë¾Ó±²¬¸´§ Î¿¬»üêôðçëòðð ïë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ ïêÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêî ±® »¯«·ª¿´»²¬ ïê¿É»»µ´§ Î¿¬»üîôéìðòðð ïê¾Ó±²¬¸´§ Î¿¬»üëôêéëòðð ïê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð ïéÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çëð ±® »¯«·ª¿´»²¬ ïé¿É»»µ´§ Î¿¬»üîôïðëòðð ïé¾Ó±²¬¸´§ Î¿¬»üìôèððòðð ïé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîèðòðð ïèÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çíè ±® »¯«·ª¿´»²¬ ïè¿É»»µ´§ Î¿¬»üïôìïðòðð ïè¾Ó±²¬¸´§ Î¿¬»üíôìíïòðð ïè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëëðòðð ïçÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîè ±® »¯«·ª¿´»²¬ ïç¿É»»µ´§ Î¿¬»üïôéïðòðð ïç¾Ó±²¬¸´§ Î¿¬»üíôëìëòðð ïç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üìððòðð îðÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîì ±® »¯«·ª¿´»²¬ îð¿É»»µ´§ Î¿¬» îð¾Ó±²¬¸´§ Î¿¬» îð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÓÑÌÑÎ ÙÎßÜÛÎÍ îïÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïî ±® »¯«·ª¿´»²¬ îï¿É»»µ´§ Î¿¬»üïôëððòðð îï¾Ó±²¬¸´§ Î¿¬»üìôëððòðð îï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð îîÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïìð ±® »¯«·ª¿´»²¬ îî¿É»»µ´§ Î¿¬»üïôêêêòêé îî¾Ó±²¬¸´§ Î¿¬»üëôðððòðð îî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ ÛÈÝßÊßÌÑÎÍ îíÛ¨½¿ª¿¬±®ô Ý¿¬ íìë ±® »¯«·ª¿´»²¬ îí¿É»»µ´§ Î¿¬»üíôçèðòðð îí¾Ó±²¬¸´§ Î¿¬»üéôççëòðð îí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð îìÛ¨½¿ª¿¬±®ô Ý¿¬ ííð ±® »¯«·ª¿´»²¬ îì¿É»»µ´§ Î¿¬»üîôêèðòðð îì¾Ó±²¬¸´§ Î¿¬»üêôðíéòðð îì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üçððòðð îëÛ¨½¿ª¿¬±®ô Ý¿¬ íîë ±® »¯«·ª¿´»²¬ îë¿É»»µ´§ Î¿¬»üïôèííòíí îë¾Ó±²¬¸´§ Î¿¬»üëôëððòðð îë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð îêÛ¨½¿ª¿¬±®ô Ý¿¬ íîð ±® »¯«·ª¿´»²¬ îê¿É»»µ´§ Î¿¬»üïôìèéòðð îê¾Ó±²¬¸´§ Î¿¬»üíôççëòðð îê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîëðòðð Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îé ïôëðð øº¬ ´¾÷ ½´¿ îé¿É»»µ´§ Î¿¬»üîôëððòðð îé¾Ó±²¬¸´§ Î¿¬»üêôîððòðð îé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îè íôððð øº¬ ´¾÷ ½´¿ îè¿É»»µ´§ Î¿¬»üîôëîðòðð îè¾Ó±²¬¸´§ Î¿¬»üêôîçðòðð îè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîíðòðð Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îç ëôððð øº¬ ´¾÷ ½´¿ îç¿É»»µ´§ Î¿¬»üíôðèîòðð îç¾Ó±²¬¸´§ Î¿¬»üèôìëëòðð îç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîëðòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ Û¨½¿ª¿¬±®ô Ý¿¬ íîð ©·¬¸ ¦»®± ¬¿·´°·² íð ±® »¯«¿ª¿´»²¬ íð¿É»»µ´§ Î¿¬»üïôçððòðð íð¾Ó±²¬¸´§ Î¿¬»üìôêçëòðð íð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð ÍÑ×Ô ÍÝÎÛÛÒÛÎ Í±·´ Í½®»»²»®ô Ì»®»¨ñÚ·²»´§ ééð ±® íï »¯«·ª¿´»²¬ ó íñèþ ó ïñìþ ½®»»² íï¿É»»µ´§ Î¿¬» íï¾Ó±²¬¸´§ Î¿¬» íï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÌÎËÝÕÍô øÑººóÎ±¿¼÷ Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üîëð ±® íí »¯«·ª¿´»²¬ íí¿É»»µ´§ Î¿¬»üîôïêêòêé íí¾Ó±²¬¸´§ Î¿¬»üêôëððòðð íí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üíðð ±® íì »¯«·ª¿´»²¬ íì¿É»»µ´§ Î¿¬»üîôèííòíí íì¾Ó±²¬¸´§ Î¿¬»üèôëððòðð íì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð Ì®«½µ øÑººóÎ±¿¼÷ô Ý¿¬ Üìðð ±® íë »¯«·ª¿´»²¬ íë¿É»»µ´§ Î¿¬» íë¾Ó±²¬¸´§ Î¿¬» íë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÍÝÎßÐÛÎÍ íêÍ½®¿°»®ô Ý¿¬ êîí ±® »¯«·ª¿´»²¬ íê¿É»»µ´§ Î¿¬»üíôêêêòêé íê¾Ó±²¬¸´§ Î¿¬»üïïôðððòðð íê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð íéÍ½®¿°»®ô Ý¿¬ êîï ±® »¯«·ª¿´»²¬ íé¿É»»µ´§ Î¿¬» íé¾Ó±²¬¸´§ Î¿¬» íé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ íèÍ½®¿°»®ô Ý¿¬ êïë ±® »¯«·ª¿´»²¬ íè¿É»»µ´§ Î¿¬»üîôëððòðð íè¾Ó±²¬¸´§ Î¿¬»üéôëððòðð íè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð íçÍ½®¿°»®ô Ý¿¬ êïí ±® »¯«·ª¿´»²¬ íç¿É»»µ´§ Î¿¬»üîôðððòðð íç¾Ó±²¬¸´§ Î¿¬»üêôðððòðð íç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ÌÎßÝÕ ÔÑßÜÛÎÍ ìïÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çêí ±® »¯«·ª¿´»²¬ ìï¿É»»µ´§ Î¿¬»üîôïêêòêé ìï¾Ó±²¬¸´§ Î¿¬»üêôëððòðð ìï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ìîÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çëí ±® »¯«·ª¿´»²¬ ìî¿É»»µ´§ Î¿¬»üïôêêêòêé ìî¾Ó±²¬¸´§ Î¿¬»üëôðððòðð ìî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ÝÑÓÐßÝÌÑÎÍ ììÝ±³°¿½¬±®ô Ý¿¬ èïë ±® »¯«·ª¿´»²¬ ìì¿É»»µ´§ Î¿¬»üîôëððòðð ìì¾Ó±²¬¸´§ Î¿¬»üéôëððòðð ìì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ìëÝ±³°¿½¬±®ô Ý¿¬ ÝÐëêí ±® »¯«·ª¿´»²¬ ìë¿É»»µ´§ Î¿¬»üïôîíéòðð ìë¾Ó±²¬¸´§ Î¿¬»üîôçéëòðð ìë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîíðòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ ìêÝ±³°¿½¬±®ô Ý¿¬ ÝÍëêí ±® »¯«·ª¿´»²¬ ìê¿É»»µ´§ Î¿¬»üïôîíéòðð ìê¾Ó±²¬¸´§ Î¿¬»üîôçéëòðð ìê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîíðòðð ÉßÌÛÎ ÉßÙÑÒÍ øÑººóÎ±¿¼÷ É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ êïí ±® ìé »¯«·ª¿´»²¬ ìé¿É»»µ´§ Î¿¬»üîôðððòðð ìé¾Ó±²¬¸´§ Î¿¬»üêôðððòðð ìé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ Üîë ±® ìè »¯«·ª¿´»²¬ ìè¿É»»µ´§ Î¿¬» ìè¾Ó±²¬¸´§ Î¿¬» ìè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉßÌÛÎ ÌÎËÝÕÍ øÑ²óÎ±¿¼÷ ìçÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô îôððð ¹¿´ò ìç¿É»»µ´§ Î¿¬»üèçêòðð ìç¾Ó±²¬¸´§ Î¿¬»üîôïððòðð ìç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîððòðð ëðÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô ìôððð ¹¿´ò ëð¿É»»µ´§ Î¿¬»üïôêðëòðð ëð¾Ó±²¬¸´§ Î¿¬»üíôêëðòðð ëð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð Ó×ÈÛÎÍñÎÛÝÇÝÔÛÎÍ Ó·¨»®ñÎ»½§½´»®ô Þ±³¿¹ ïððÎ ±® ëï »¯«·ª¿´»²¬ ëï¿É»»µ´§ Î¿¬» ëï¾Ó±²¬¸´§ Î¿¬» ëï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ó·¨»®ñÎ»½§½´»®ôÝÓ× íîë ±® ëî »¯«·ª¿´»²¬ ëî¿É»»µ´§ Î¿¬»üîôêêêòêé ëî¾Ó±²¬¸´§ Î¿¬»üèôðððòðð ëî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ ßÍÐØßÔÌóÔßÇ ÜÑÉÒ ÓßÝØ×ÒÛ ß°¸¿´¬ ó Ô¿§ Ü±©² Ó¿½¸·²»ô è º¬ó ïë ëì º¬ ëì¿É»»µ´§ Î¿¬» ëì¾Ó±²¬¸´§ Î¿¬» ëì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ßÍÐØßÔÌ ÎÑÔÔÛÎÍ ëëß°¸¿´¬ Î±´´»®ô ç ¬±² ëë¿É»»µ´§ Î¿¬»üçððòðð ëë¾Ó±²¬¸´§ Î¿¬»üîôîêðòðð ëë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ëêß°¸¿´¬ Î±´´»®ô ïî ¬±² ëê¿É»»µ´§ Î¿¬»üéððòðð ëê¾Ó±²¬¸´§ Î¿¬»üîôìêðòðð ëê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ÞÎÑÑÓ ÌÎËÝÕÍ ëçÞ®±½µ ÎÖíëð Þ®±±³ ±® »¯«·ª¿´»²¬ ëç¿É»»µ´§ Î¿¬» ëç¾Ó±²¬¸´§ Î¿¬» ëç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ñ°¬·±²æ ß¼¼ ¹«¬¬»® ¾±±³ ¿¬¬¿½¸³»²¬ ¬± ¾¿» °®·½» ëç¼É»»µ´§ Î¿¬» ëç»Ó±²¬¸´§ Î¿¬» ÞßÝÕØÑÛÍ Þ¿½µ¸±»ô Ý¿» ëèðÓ ±® »¯«·ª¿´»²¬ ó êð èë ¸° ½´¿ êð¿Ü¿·´§ Î¿¬» êð¾É»»µ´§ Î¿¬» êð½Ó±²¬¸´§ Î¿¬» êð¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ Þ¿½µ¸±»ô Ý¿» ëçðÓ ±® »¯«·ª¿´»²¬ ó êï èë ¸° ½´¿ øÜ¿·´§ Î¿¬»÷ êï¿Ü¿·´§ Î¿¬»üîëëòðð êï¾É»»µ´§ Î¿¬»üêððòðð êï½Ó±²¬¸´§ Î¿¬»üïôëçëòðð êï¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïçðòðð êîÑ°¬·±² ¿¼¼»¼ ¬± ¾¿½µ¸±» ¾¿» °®·½»æ ¿ß¼¼ ½¿¾ ©·¬¸ ¿·® ½±²¼·¬·±²·²¹ Ü¿·´§ Î¿¬»üíëòðð É»»µ´§ Î¿¬»üçðòðð Ó±²¬¸´§ Î¿¬»üîêëòðð ¾ß¼¼ ìó©¸»»´ ¼®·ª» Ü¿·´§ Î¿¬»üîëòðð É»»µ´§ Î¿¬»üêðòðð Ó±²¬¸´§ Î¿¬»üïèðòðð ½ß¼¼ »¨¬»²¼¿¼·¹ Ü¿·´§ Î¿¬»üìëòðð É»»µ´§ Î¿¬»üïíëòðð Ó±²¬¸´§ Î¿¬»üìððòðð ÍÕ×ÜÍÌÛÛÎÍ êíÍµ·¼¬»»®ô Ý¿¬ îïê ±® »¯«·ª¿´»²¬ êí¿Ü¿·´§ Î¿¬»üïííòðð êí¾É»»µ´§ Î¿¬»üííëòðð êí½Ó±²¬¸´§ Î¿¬»üéïëòðð êí¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïëðòðð êìÍµ·¼¬»»®ô Ý¿¬ îîê ±® »¯«·ª¿´»²¬ êì¿Ü¿·´§ Î¿¬»üïìîòðð êì¾É»»µ´§ Î¿¬»üíêðòðð êì½Ó±²¬¸´§ Î¿¬»üéëçòðð êì¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïëðòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Û¯«·°³»²¬ Ø»®¬¦ Þ ú Î Þ¿²» Þ±¾½¿¬ ±º Í«°°±®¬ Û¯«·°³»²¬ Û¯«·°³»²¬Ó¿½¸·²»®§Ü»²¬±² Í»®ª·½»Î»²¬¿´ Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æÕ»´´»®ô ÌÈÜ»²¬±²ô ÌÈÛ«´»ô ÌÈÚ®·½±ô ÌÈ ÌÈ êëÍµ·¼¬»»®ô Ý¿¬ îíê ±® »¯«·ª¿´»²¬ êë¿Ü¿·´§ Î¿¬»üïìîòðð êë¾É»»µ´§ Î¿¬»üíêðòðð êë½Ó±²¬¸´§ Î¿¬»üéëçòðð êë¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïëðòðð êêÍµ·¼¬»»®ô Ý¿¬ îìê ±® »¯«·ª¿´»²¬ êê¿Ü¿·´§ Î¿¬»üïééòðð êê¾É»»µ´§ Î¿¬»üììçòðð êê½Ó±²¬¸´§ Î¿¬»üïôðèèòðð êê¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïëðòðð êéÍµ·¼¬»»®ô Ý¿¬ îëê ±® »¯«·ª¿´»²¬ êé¿Ü¿·´§ Î¿¬»üîéëòðð êé¾É»»µ´§ Î¿¬»üëéëòðð êé½Ó±²¬¸´§ Î¿¬»üïôîèëòðð êé¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üìëðòðð êèÍµ·¼¬»»®ô Ý¿¬ îêî ±® »¯«·ª¿´»²¬ êè¿Ü¿·´§ Î¿¬»üíððòðð êè¾É»»µ´§ Î¿¬»üêððòðð êè½Ó±²¬¸´§ Î¿¬»üïôìêîòðð êè¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üìëðòðð êçÍµ·¼¬»»®ô Ý¿¬ îéî ±® »¯«·ª¿´»²¬ êç¿Ü¿·´§ Î¿¬»üîïëòðð êç¾É»»µ´§ Î¿¬»üêìëòðð êç½Ó±²¬¸´§ Î¿¬»üïôçíëòðð êç¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïíðòðð ß¼¼»²¼«³ ýïÇ»Ç»Ò±Ç»Ç» Ü»´·ª»®§ ½¿² ¾» ³¿¼» ·² ÁÁÁÁÁÁ ¼¿§ º®±³ í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® ®»½»·°¬ ±º ±®¼»®ò °»½°»½°»½°»½°»½ Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ ÜÑÆÛÎÍ ïÜ±¦»®ô Ý¿¬ Üïð ±® »¯«·ª¿´»²¬ ï¿É»»µ´§ Î¿¬» ï¾Ó±²¬¸´§ Î¿¬» ï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îÜ±¦»®ô Ý¿¬ Üç ±® »¯«·ª¿´»²¬ î¿É»»µ´§ Î¿¬»üëôèëðòðð î¾Ó±²¬¸´§ Î¿¬»üïéôëððòðð î½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïôëððòðð íÜ±¦»®ô Ý¿¬ Üè ±® »¯«·ª¿´»²¬ í¿É»»µ´§ Î¿¬» í¾Ó±²¬¸´§ Î¿¬» í½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìÜ±¦»®ô Ý¿¬ Üé ±® »¯«·ª¿´»²¬ ì¿É»»µ´§ Î¿¬» ì¾Ó±²¬¸´§ Î¿¬» ì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êÜ±¦»®ô Ý¿¬ Üê ±® »¯«·ª¿´»²¬ ê¿É»»µ´§ Î¿¬» ê¾Ó±²¬¸´§ Î¿¬» ê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° éÜ±¦»®ô ÔÙÐ Ý¿¬ Üê ±® »¯«·ª¿´»²¬ é¿É»»µ´§ Î¿¬» é¾Ó±²¬¸´§ Î¿¬» é½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° èÜ±¦»®ô Ý¿¬ ÜëÓ ±® »¯«·ª¿´»²¬ è¿É»»µ´§ Î¿¬» è¾Ó±²¬¸´§ Î¿¬» è½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ çÜ±¦»®ô ÔÙÐ Ý¿¬ ÜëÙ ±® »¯«·ª¿´»²¬ ç¿É»»µ´§ Î¿¬» ç¾Ó±²¬¸´§ Î¿¬» ç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïðÜ±¦»®ô ÔÙÐ Ý¿¬ Üë ±® »¯«·ª¿´»²¬ ïð¿É»»µ´§ Î¿¬» ïð¾Ó±²¬¸´§ Î¿¬» ïð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïïÜ±¦»®ô Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïï¿É»»µ´§ Î¿¬»üïôðëðòðð ïï¾Ó±²¬¸´§ Î¿¬»üîôêððòðð ïï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïëðòðð ïîÜ±¦»®ô ÔÙÐ Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïî¿É»»µ´§ Î¿¬» ïî¾Ó±²¬¸´§ Î¿¬» ïî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉØÛÛÔ ÔÑßÜÛÎÍ ïíÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèè ±® »¯«·ª¿´»²¬ ïí¿É»»µ´§ Î¿¬» ïí¾Ó±²¬¸´§ Î¿¬» ïí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïìÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèð ±® »¯«·ª¿´»²¬ ïì¿É»»µ´§ Î¿¬» ïì¾Ó±²¬¸´§ Î¿¬» ïì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïëÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêê ±® »¯«·ª¿´»²¬ ïë¿É»»µ´§ Î¿¬» ïë¾Ó±²¬¸´§ Î¿¬» ïë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ ïêÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêî ±® »¯«·ª¿´»²¬ ïê¿É»»µ´§ Î¿¬» ïê¾Ó±²¬¸´§ Î¿¬» ïê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïéÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çëð ±® »¯«·ª¿´»²¬ ïé¿É»»µ´§ Î¿¬» ïé¾Ó±²¬¸´§ Î¿¬» ïé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïèÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çíè ±® »¯«·ª¿´»²¬ ïè¿É»»µ´§ Î¿¬» ïè¾Ó±²¬¸´§ Î¿¬» ïè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïçÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîè ±® »¯«·ª¿´»²¬ ïç¿É»»µ´§ Î¿¬» ïç¾Ó±²¬¸´§ Î¿¬» ïç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îðÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîì ±® »¯«·ª¿´»²¬ îð¿É»»µ´§ Î¿¬»üïôîððòðð îð¾Ó±²¬¸´§ Î¿¬»üíôðððòðð îð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üíððòðð ÓÑÌÑÎ ÙÎßÜÛÎÍ îïÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïî ±® »¯«·ª¿´»²¬ îï¿É»»µ´§ Î¿¬» îï¾Ó±²¬¸´§ Î¿¬» îï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îîÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïìð ±® »¯«·ª¿´»²¬ îî¿É»»µ´§ Î¿¬» îî¾Ó±²¬¸´§ Î¿¬» îî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ ÛÈÝßÊßÌÑÎÍ îíÛ¨½¿ª¿¬±®ô Ý¿¬ íìë ±® »¯«·ª¿´»²¬ îí¿É»»µ´§ Î¿¬» îí¾Ó±²¬¸´§ Î¿¬» îí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îìÛ¨½¿ª¿¬±®ô Ý¿¬ ííð ±® »¯«·ª¿´»²¬ îì¿É»»µ´§ Î¿¬» îì¾Ó±²¬¸´§ Î¿¬» îì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îëÛ¨½¿ª¿¬±®ô Ý¿¬ íîë ±® »¯«·ª¿´»²¬ îë¿É»»µ´§ Î¿¬» îë¾Ó±²¬¸´§ Î¿¬» îë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îêÛ¨½¿ª¿¬±®ô Ý¿¬ íîð ±® »¯«·ª¿´»²¬ îê¿É»»µ´§ Î¿¬» îê¾Ó±²¬¸´§ Î¿¬» îê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îé ïôëðð øº¬ ´¾÷ ½´¿ îé¿É»»µ´§ Î¿¬» îé¾Ó±²¬¸´§ Î¿¬» îé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îè íôððð øº¬ ´¾÷ ½´¿ îè¿É»»µ´§ Î¿¬» îè¾Ó±²¬¸´§ Î¿¬» îè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îç ëôððð øº¬ ´¾÷ ½´¿ îç¿É»»µ´§ Î¿¬» îç¾Ó±²¬¸´§ Î¿¬» îç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ Û¨½¿ª¿¬±®ô Ý¿¬ íîð ©·¬¸ ¦»®± ¬¿·´°·² íð ±® »¯«¿ª¿´»²¬ íð¿É»»µ´§ Î¿¬» íð¾Ó±²¬¸´§ Î¿¬» íð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÍÑ×Ô ÍÝÎÛÛÒÛÎ Í±·´ Í½®»»²»®ô Ì»®»¨ñÚ·²»´§ ééð ±® íï »¯«·ª¿´»²¬ ó íñèþ ó ïñìþ ½®»»² íï¿É»»µ´§ Î¿¬» íï¾Ó±²¬¸´§ Î¿¬» íï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÌÎËÝÕÍô øÑººóÎ±¿¼÷ Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üîëð ±® íí »¯«·ª¿´»²¬ íí¿É»»µ´§ Î¿¬» íí¾Ó±²¬¸´§ Î¿¬» íí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üíðð ±® íì »¯«·ª¿´»²¬ íì¿É»»µ´§ Î¿¬» íì¾Ó±²¬¸´§ Î¿¬» íì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ì®«½µ øÑººóÎ±¿¼÷ô Ý¿¬ Üìðð ±® íë »¯«·ª¿´»²¬ íë¿É»»µ´§ Î¿¬» íë¾Ó±²¬¸´§ Î¿¬» íë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÍÝÎßÐÛÎÍ íêÍ½®¿°»®ô Ý¿¬ êîí ±® »¯«·ª¿´»²¬ íê¿É»»µ´§ Î¿¬» íê¾Ó±²¬¸´§ Î¿¬» íê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íéÍ½®¿°»®ô Ý¿¬ êîï ±® »¯«·ª¿´»²¬ íé¿É»»µ´§ Î¿¬» íé¾Ó±²¬¸´§ Î¿¬» íé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ íèÍ½®¿°»®ô Ý¿¬ êïë ±® »¯«·ª¿´»²¬ íè¿É»»µ´§ Î¿¬» íè¾Ó±²¬¸´§ Î¿¬» íè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íçÍ½®¿°»®ô Ý¿¬ êïí ±® »¯«·ª¿´»²¬ íç¿É»»µ´§ Î¿¬» íç¾Ó±²¬¸´§ Î¿¬» íç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÌÎßÝÕ ÔÑßÜÛÎÍ ìïÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çêí ±® »¯«·ª¿´»²¬ ìï¿É»»µ´§ Î¿¬» ìï¾Ó±²¬¸´§ Î¿¬» ìï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìîÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çëí ±® »¯«·ª¿´»²¬ ìî¿É»»µ´§ Î¿¬» ìî¾Ó±²¬¸´§ Î¿¬» ìî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÝÑÓÐßÝÌÑÎÍ ììÝ±³°¿½¬±®ô Ý¿¬ èïë ±® »¯«·ª¿´»²¬ ìì¿É»»µ´§ Î¿¬» ìì¾Ó±²¬¸´§ Î¿¬» ìì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìëÝ±³°¿½¬±®ô Ý¿¬ ÝÐëêí ±® »¯«·ª¿´»²¬ ìë¿É»»µ´§ Î¿¬» ìë¾Ó±²¬¸´§ Î¿¬» ìë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ ìêÝ±³°¿½¬±®ô Ý¿¬ ÝÍëêí ±® »¯«·ª¿´»²¬ ìê¿É»»µ´§ Î¿¬» ìê¾Ó±²¬¸´§ Î¿¬» ìê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉßÌÛÎ ÉßÙÑÒÍ øÑººóÎ±¿¼÷ É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ êïí ±® ìé »¯«·ª¿´»²¬ ìé¿É»»µ´§ Î¿¬» ìé¾Ó±²¬¸´§ Î¿¬» ìé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ Üîë ±® ìè »¯«·ª¿´»²¬ ìè¿É»»µ´§ Î¿¬» ìè¾Ó±²¬¸´§ Î¿¬» ìè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉßÌÛÎ ÌÎËÝÕÍ øÑ²óÎ±¿¼÷ ìçÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô îôððð ¹¿´ò ìç¿É»»µ´§ Î¿¬» ìç¾Ó±²¬¸´§ Î¿¬» ìç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ëðÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô ìôððð ¹¿´ò ëð¿É»»µ´§ Î¿¬» ëð¾Ó±²¬¸´§ Î¿¬» ëð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ó×ÈÛÎÍñÎÛÝÇÝÔÛÎÍ Ó·¨»®ñÎ»½§½´»®ô Þ±³¿¹ ïððÎ ±® ëï »¯«·ª¿´»²¬ ëï¿É»»µ´§ Î¿¬» ëï¾Ó±²¬¸´§ Î¿¬» ëï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ó·¨»®ñÎ»½§½´»®ôÝÓ× íîë ±® ëî »¯«·ª¿´»²¬ ëî¿É»»µ´§ Î¿¬» ëî¾Ó±²¬¸´§ Î¿¬» ëî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ ßÍÐØßÔÌóÔßÇ ÜÑÉÒ ÓßÝØ×ÒÛ ß°¸¿´¬ ó Ô¿§ Ü±©² Ó¿½¸·²»ô è º¬ó ïë ëì º¬ ëì¿É»»µ´§ Î¿¬»üìôðððòðð ëì¾Ó±²¬¸´§ Î¿¬»üïðôëððòðð ëì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°Ò± Þ·¼ ßÍÐØßÔÌ ÎÑÔÔÛÎÍ ëëß°¸¿´¬ Î±´´»®ô ç ¬±² ëë¿É»»µ´§ Î¿¬» ëë¾Ó±²¬¸´§ Î¿¬» ëë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ëêß°¸¿´¬ Î±´´»®ô ïî ¬±² ëê¿É»»µ´§ Î¿¬» ëê¾Ó±²¬¸´§ Î¿¬» ëê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÞÎÑÑÓ ÌÎËÝÕÍ ëçÞ®±½µ ÎÖíëð Þ®±±³ ±® »¯«·ª¿´»²¬ ëç¿É»»µ´§ Î¿¬»üëìðòðð ëç¾Ó±²¬¸´§ Î¿¬»üïôìíëòðð ëç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üïíðòðð Ñ°¬·±²æ ß¼¼ ¹«¬¬»® ¾±±³ ¿¬¬¿½¸³»²¬ ¬± ¾¿» °®·½» ëç¼É»»µ´§ Î¿¬»Ò± Þ·¼ ëç»Ó±²¬¸´§ Î¿¬»Ò± Þ·¼ ÞßÝÕØÑÛÍ Þ¿½µ¸±»ô Ý¿» ëèðÓ ±® »¯«·ª¿´»²¬ ó êð èë ¸° ½´¿ êð¿Ü¿·´§ Î¿¬»üïîëòðð êð¾É»»µ´§ Î¿¬»üíëðòðð êð½Ó±²¬¸´§ Î¿¬»üïôðððòðð êð¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°éëòððñéëòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ Þ¿½µ¸±»ô Ý¿» ëçðÓ ±® »¯«·ª¿´»²¬ ó êï èë ¸° ½´¿ øÜ¿·´§ Î¿¬»÷ êï¿Ü¿·´§ Î¿¬» êï¾É»»µ´§ Î¿¬» êï½Ó±²¬¸´§ Î¿¬» êï¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êîÑ°¬·±² ¿¼¼»¼ ¬± ¾¿½µ¸±» ¾¿» °®·½»æ ¿ß¼¼ ½¿¾ ©·¬¸ ¿·® ½±²¼·¬·±²·²¹ Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ¾ß¼¼ ìó©¸»»´ ¼®·ª» Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ½ß¼¼ »¨¬»²¼¿¼·¹ Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ÍÕ×ÜÍÌÛÛÎÍ êíÍµ·¼¬»»®ô Ý¿¬ îïê ±® »¯«·ª¿´»²¬ êí¿Ü¿·´§ Î¿¬» êí¾É»»µ´§ Î¿¬» êí½Ó±²¬¸´§ Î¿¬» êí¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êìÍµ·¼¬»»®ô Ý¿¬ îîê ±® »¯«·ª¿´»²¬ êì¿Ü¿·´§ Î¿¬» êì¾É»»µ´§ Î¿¬» êì½Ó±²¬¸´§ Î¿¬» êì¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±®Ê»²¼±® Ø±©¿®¼óÔ¿²¼³¿®µ ÎÑÓÝÑ Ò»ºº Î»²¬¿´ô Í«²¾»´¬ Ó½ß²»¿® Û¯«·°³»²¬ô Î»²¬¿´ Ñ²»Û¯«·°³»²¬ ×²½òÎ»²¬¿´ Û¯«·°³»²¬×²½òÝ±ò Ú±®¬ É±®¬¸ô Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈÍ¿¹·²¿©ô ÌÈÜ¿´´¿ô ÌÈÜ»²¬±²ô ÌÈ ÌÈÌÈ êëÍµ·¼¬»»®ô Ý¿¬ îíê ±® »¯«·ª¿´»²¬ êë¿Ü¿·´§ Î¿¬» êë¾É»»µ´§ Î¿¬» êë½Ó±²¬¸´§ Î¿¬» êë¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êêÍµ·¼¬»»®ô Ý¿¬ îìê ±® »¯«·ª¿´»²¬ êê¿Ü¿·´§ Î¿¬» êê¾É»»µ´§ Î¿¬» êê½Ó±²¬¸´§ Î¿¬» êê¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êéÍµ·¼¬»»®ô Ý¿¬ îëê ±® »¯«·ª¿´»²¬ êé¿Ü¿·´§ Î¿¬» êé¾É»»µ´§ Î¿¬» êé½Ó±²¬¸´§ Î¿¬» êé¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êèÍµ·¼¬»»®ô Ý¿¬ îêî ±® »¯«·ª¿´»²¬ êè¿Ü¿·´§ Î¿¬» êè¾É»»µ´§ Î¿¬» êè½Ó±²¬¸´§ Î¿¬» êè¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êçÍµ·¼¬»»®ô Ý¿¬ îéî ±® »¯«·ª¿´»²¬ êç¿Ü¿·´§ Î¿¬» êç¾É»»µ´§ Î¿¬» êç½Ó±²¬¸´§ Î¿¬» êç¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ß¼¼»²¼«³ ýïÇ»Ç»Ç»Ç»Ò±Ò± Ü»´·ª»®§ ½¿² ¾» ³¿¼» ·² ÁÁÁÁÁÁ ¼¿§ º®±³ í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® í ¼¿§ °»® ®»½»·°¬ ±º ±®¼»®ò °»½°»½°»½°»½°»½°»½ Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ ÜÑÆÛÎÍ ïÜ±¦»®ô Ý¿¬ Üïð ±® »¯«·ª¿´»²¬ ï¿É»»µ´§ Î¿¬»üéôëððòðð ï¾Ó±²¬¸´§ Î¿¬»üîîôëððòðð ï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üìôðððòðð îÜ±¦»®ô Ý¿¬ Üç ±® »¯«·ª¿´»²¬ î¿É»»µ´§ Î¿¬» î¾Ó±²¬¸´§ Î¿¬» î½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íÜ±¦»®ô Ý¿¬ Üè ±® »¯«·ª¿´»²¬ í¿É»»µ´§ Î¿¬» í¾Ó±²¬¸´§ Î¿¬» í½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìÜ±¦»®ô Ý¿¬ Üé ±® »¯«·ª¿´»²¬ ì¿É»»µ´§ Î¿¬» ì¾Ó±²¬¸´§ Î¿¬» ì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êÜ±¦»®ô Ý¿¬ Üê ±® »¯«·ª¿´»²¬ ê¿É»»µ´§ Î¿¬» ê¾Ó±²¬¸´§ Î¿¬» ê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° éÜ±¦»®ô ÔÙÐ Ý¿¬ Üê ±® »¯«·ª¿´»²¬ é¿É»»µ´§ Î¿¬»üîôëððòðð é¾Ó±²¬¸´§ Î¿¬»üêôëëðòðð é½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð èÜ±¦»®ô Ý¿¬ ÜëÓ ±® »¯«·ª¿´»²¬ è¿É»»µ´§ Î¿¬»üïôìððòðð è¾Ó±²¬¸´§ Î¿¬»üìôðððòðð è½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëððòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ çÜ±¦»®ô ÔÙÐ Ý¿¬ ÜëÙ ±® »¯«·ª¿´»²¬ ç¿É»»µ´§ Î¿¬» ç¾Ó±²¬¸´§ Î¿¬» ç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïðÜ±¦»®ô ÔÙÐ Ý¿¬ Üë ±® »¯«·ª¿´»²¬ ïð¿É»»µ´§ Î¿¬» ïð¾Ó±²¬¸´§ Î¿¬» ïð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïïÜ±¦»®ô Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïï¿É»»µ´§ Î¿¬» ïï¾Ó±²¬¸´§ Î¿¬» ïï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïîÜ±¦»®ô ÔÙÐ Ý¿¬ Üì ±® »¯«·ª¿´»²¬ ïî¿É»»µ´§ Î¿¬» ïî¾Ó±²¬¸´§ Î¿¬» ïî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉØÛÛÔ ÔÑßÜÛÎÍ ïíÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèè ±® »¯«·ª¿´»²¬ ïí¿É»»µ´§ Î¿¬»üëôðððòðð ïí¾Ó±²¬¸´§ Î¿¬»üïëôðððòðð ïí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üîôðððòðð ïìÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çèð ±® »¯«·ª¿´»²¬ ïì¿É»»µ´§ Î¿¬» ïì¾Ó±²¬¸´§ Î¿¬» ïì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïëÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêê ±® »¯«·ª¿´»²¬ ïë¿É»»µ´§ Î¿¬» ïë¾Ó±²¬¸´§ Î¿¬» ïë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ ïêÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çêî ±® »¯«·ª¿´»²¬ ïê¿É»»µ´§ Î¿¬» ïê¾Ó±²¬¸´§ Î¿¬» ïê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïéÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çëð ±® »¯«·ª¿´»²¬ ïé¿É»»µ´§ Î¿¬» ïé¾Ó±²¬¸´§ Î¿¬» ïé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïèÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çíè ±® »¯«·ª¿´»²¬ ïè¿É»»µ´§ Î¿¬» ïè¾Ó±²¬¸´§ Î¿¬» ïè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ïçÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîè ±® »¯«·ª¿´»²¬ ïç¿É»»µ´§ Î¿¬» ïç¾Ó±²¬¸´§ Î¿¬» ïç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îðÉ¸»»´ Ô±¿¼»®ô Ý¿¬ çîì ±® »¯«·ª¿´»²¬ îð¿É»»µ´§ Î¿¬» îð¾Ó±²¬¸´§ Î¿¬» îð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÓÑÌÑÎ ÙÎßÜÛÎÍ îïÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïî ±® »¯«·ª¿´»²¬ îï¿É»»µ´§ Î¿¬» îï¾Ó±²¬¸´§ Î¿¬» îï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îîÓ±¬±® Ù®¿¼»®ô Ý¿¬ ïìð ±® »¯«·ª¿´»²¬ îî¿É»»µ´§ Î¿¬» îî¾Ó±²¬¸´§ Î¿¬» îî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ ÛÈÝßÊßÌÑÎÍ îíÛ¨½¿ª¿¬±®ô Ý¿¬ íìë ±® »¯«·ª¿´»²¬ îí¿É»»µ´§ Î¿¬» îí¾Ó±²¬¸´§ Î¿¬» îí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îìÛ¨½¿ª¿¬±®ô Ý¿¬ ííð ±® »¯«·ª¿´»²¬ îì¿É»»µ´§ Î¿¬» îì¾Ó±²¬¸´§ Î¿¬» îì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îëÛ¨½¿ª¿¬±®ô Ý¿¬ íîë ±® »¯«·ª¿´»²¬ îë¿É»»µ´§ Î¿¬» îë¾Ó±²¬¸´§ Î¿¬» îë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° îêÛ¨½¿ª¿¬±®ô Ý¿¬ íîð ±® »¯«·ª¿´»²¬ îê¿É»»µ´§ Î¿¬» îê¾Ó±²¬¸´§ Î¿¬» îê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îé ïôëðð øº¬ ´¾÷ ½´¿ îé¿É»»µ´§ Î¿¬» îé¾Ó±²¬¸´§ Î¿¬» îé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îè íôððð øº¬ ´¾÷ ½´¿ îè¿É»»µ´§ Î¿¬» îè¾Ó±²¬¸´§ Î¿¬» îè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Û¨½¿ª¿¬±®ô ©·¬¸ ¸§¼®¿«´·½ ¾®»¿µ»® îç ëôððð øº¬ ´¾÷ ½´¿ îç¿É»»µ´§ Î¿¬» îç¾Ó±²¬¸´§ Î¿¬» îç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ Û¨½¿ª¿¬±®ô Ý¿¬ íîð ©·¬¸ ¦»®± ¬¿·´°·² íð ±® »¯«¿ª¿´»²¬ íð¿É»»µ´§ Î¿¬» íð¾Ó±²¬¸´§ Î¿¬» íð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÍÑ×Ô ÍÝÎÛÛÒÛÎ Í±·´ Í½®»»²»®ô Ì»®»¨ñÚ·²»´§ ééð ±® íï »¯«·ª¿´»²¬ ó íñèþ ó ïñìþ ½®»»² íï¿É»»µ´§ Î¿¬»üîôëððòðð íï¾Ó±²¬¸´§ Î¿¬»üéôîëðòðð íï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëëðòðð ÌÎËÝÕÍô øÑººóÎ±¿¼÷ Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üîëð ±® íí »¯«·ª¿´»²¬ íí¿É»»µ´§ Î¿¬» íí¾Ó±²¬¸´§ Î¿¬» íí½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ì®«½µô øÑººóÎ±¿¼÷ô Ý¿¬ Üíðð ±® íì »¯«·ª¿´»²¬ íì¿É»»µ´§ Î¿¬» íì¾Ó±²¬¸´§ Î¿¬» íì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ì®«½µ øÑººóÎ±¿¼÷ô Ý¿¬ Üìðð ±® íë »¯«·ª¿´»²¬ íë¿É»»µ´§ Î¿¬»üíôëððòðð íë¾Ó±²¬¸´§ Î¿¬»üïðôëððòðð íë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üéëðòðð ÍÝÎßÐÛÎÍ íêÍ½®¿°»®ô Ý¿¬ êîí ±® »¯«·ª¿´»²¬ íê¿É»»µ´§ Î¿¬» íê¾Ó±²¬¸´§ Î¿¬» íê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íéÍ½®¿°»®ô Ý¿¬ êîï ±® »¯«·ª¿´»²¬ íé¿É»»µ´§ Î¿¬»üíôêéëòðð íé¾Ó±²¬¸´§ Î¿¬»üïïôðððòðð íé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üéëðòðð Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ íèÍ½®¿°»®ô Ý¿¬ êïë ±® »¯«·ª¿´»²¬ íè¿É»»µ´§ Î¿¬» íè¾Ó±²¬¸´§ Î¿¬» íè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° íçÍ½®¿°»®ô Ý¿¬ êïí ±® »¯«·ª¿´»²¬ íç¿É»»µ´§ Î¿¬» íç¾Ó±²¬¸´§ Î¿¬» íç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÌÎßÝÕ ÔÑßÜÛÎÍ ìïÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çêí ±® »¯«·ª¿´»²¬ ìï¿É»»µ´§ Î¿¬» ìï¾Ó±²¬¸´§ Î¿¬» ìï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìîÌ®¿½µ Ô±¿¼»®ô Ý¿¬ çëí ±® »¯«·ª¿´»²¬ ìî¿É»»µ´§ Î¿¬» ìî¾Ó±²¬¸´§ Î¿¬» ìî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÝÑÓÐßÝÌÑÎÍ ììÝ±³°¿½¬±®ô Ý¿¬ èïë ±® »¯«·ª¿´»²¬ ìì¿É»»µ´§ Î¿¬» ìì¾Ó±²¬¸´§ Î¿¬» ìì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ìëÝ±³°¿½¬±®ô Ý¿¬ ÝÐëêí ±® »¯«·ª¿´»²¬ ìë¿É»»µ´§ Î¿¬» ìë¾Ó±²¬¸´§ Î¿¬» ìë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ ìêÝ±³°¿½¬±®ô Ý¿¬ ÝÍëêí ±® »¯«·ª¿´»²¬ ìê¿É»»µ´§ Î¿¬» ìê¾Ó±²¬¸´§ Î¿¬» ìê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÉßÌÛÎ ÉßÙÑÒÍ øÑººóÎ±¿¼÷ É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ êïí ±® ìé »¯«·ª¿´»²¬ ìé¿É»»µ´§ Î¿¬» ìé¾Ó±²¬¸´§ Î¿¬» ìé½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° É¿¬»® É¿¹±²ô øÑººóÎ±¿¼÷ô Ý¿¬ Üîë ±® ìè »¯«·ª¿´»²¬ ìè¿É»»µ´§ Î¿¬»üîôïéëòðð ìè¾Ó±²¬¸´§ Î¿¬»üêôëððòðð ìè½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëëðòðð ÉßÌÛÎ ÌÎËÝÕÍ øÑ²óÎ±¿¼÷ ìçÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô îôððð ¹¿´ò ìç¿É»»µ´§ Î¿¬» ìç¾Ó±²¬¸´§ Î¿¬» ìç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ëðÉ¿¬»® Ì®«½µ øÑ²óÎ±¿¼÷ô ìôððð ¹¿´ò ëð¿É»»µ´§ Î¿¬» ëð¾Ó±²¬¸´§ Î¿¬» ëð½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ó×ÈÛÎÍñÎÛÝÇÝÔÛÎÍ Ó·¨»®ñÎ»½§½´»®ô Þ±³¿¹ ïððÎ ±® ëï »¯«·ª¿´»²¬ ëï¿É»»µ´§ Î¿¬»üîôëððòðð ëï¾Ó±²¬¸´§ Î¿¬»üéôëððòðð ëï½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË°üëëðòðð Ó·¨»®ñÎ»½§½´»®ôÝÓ× íîë ±® ëî »¯«·ª¿´»²¬ ëî¿É»»µ´§ Î¿¬» ëî¾Ó±²¬¸´§ Î¿¬» ëî½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ ßÍÐØßÔÌóÔßÇ ÜÑÉÒ ÓßÝØ×ÒÛ ß°¸¿´¬ ó Ô¿§ Ü±©² Ó¿½¸·²»ô è º¬ó ïë ëì º¬ ëì¿É»»µ´§ Î¿¬» ëì¾Ó±²¬¸´§ Î¿¬» ëì½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ßÍÐØßÔÌ ÎÑÔÔÛÎÍ ëëß°¸¿´¬ Î±´´»®ô ç ¬±² ëë¿É»»µ´§ Î¿¬» ëë¾Ó±²¬¸´§ Î¿¬» ëë½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ëêß°¸¿´¬ Î±´´»®ô ïî ¬±² ëê¿É»»µ´§ Î¿¬» ëê¾Ó±²¬¸´§ Î¿¬» ëê½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ÞÎÑÑÓ ÌÎËÝÕÍ ëçÞ®±½µ ÎÖíëð Þ®±±³ ±® »¯«·ª¿´»²¬ ëç¿É»»µ´§ Î¿¬» ëç¾Ó±²¬¸´§ Î¿¬» ëç½Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Ñ°¬·±²æ ß¼¼ ¹«¬¬»® ¾±±³ ¿¬¬¿½¸³»²¬ ¬± ¾¿» °®·½» ëç¼É»»µ´§ Î¿¬» ëç»Ó±²¬¸´§ Î¿¬» ÞßÝÕØÑÛÍ Þ¿½µ¸±»ô Ý¿» ëèðÓ ±® »¯«·ª¿´»²¬ ó êð èë ¸° ½´¿ êð¿Ü¿·´§ Î¿¬» êð¾É»»µ´§ Î¿¬» êð½Ó±²¬¸´§ Î¿¬» êð¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ Þ¿½µ¸±»ô Ý¿» ëçðÓ ±® »¯«·ª¿´»²¬ ó êï èë ¸° ½´¿ øÜ¿·´§ Î¿¬»÷ êï¿Ü¿·´§ Î¿¬» êï¾É»»µ´§ Î¿¬» êï½Ó±²¬¸´§ Î¿¬» êï¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êîÑ°¬·±² ¿¼¼»¼ ¬± ¾¿½µ¸±» ¾¿» °®·½»æ ¿ß¼¼ ½¿¾ ©·¬¸ ¿·® ½±²¼·¬·±²·²¹ Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ¾ß¼¼ ìó©¸»»´ ¼®·ª» Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ½ß¼¼ »¨¬»²¼¿¼·¹ Ü¿·´§ Î¿¬» É»»µ´§ Î¿¬» Ó±²¬¸´§ Î¿¬» ÍÕ×ÜÍÌÛÛÎÍ êíÍµ·¼¬»»®ô Ý¿¬ îïê ±® »¯«·ª¿´»²¬ êí¿Ü¿·´§ Î¿¬» êí¾É»»µ´§ Î¿¬» êí½Ó±²¬¸´§ Î¿¬» êí¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êìÍµ·¼¬»»®ô Ý¿¬ îîê ±® »¯«·ª¿´»²¬ êì¿Ü¿·´§ Î¿¬» êì¾É»»µ´§ Î¿¬» êì½Ó±²¬¸´§ Î¿¬» êì¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° Exhibit A Þ·¼ ýíëìê íèëï Ñ°»²æ çñïíñðé ÎÛÒÌßÔ ÑÚ ØÛßÊÇ ÛÏË×ÐÓÛÒÌ ÒÑòÜÛÍÝÎ×ÐÌ×ÑÒÊ»²¼±®Ê»²¼±® ÌóÕóÑ Ë²·¬»¼ Û¯«·°³»²¬ Î»²¬¿´ Ù«´ºô Ý±òÔòÐò Ú±®¬ É±®¬¸ô Ð®·²½·°´» Ð´¿½» ±º Þ«·²»æ×®ª·²¹ô ÌÈ ÌÈ êëÍµ·¼¬»»®ô Ý¿¬ îíê ±® »¯«·ª¿´»²¬ êë¿Ü¿·´§ Î¿¬» êë¾É»»µ´§ Î¿¬» êë½Ó±²¬¸´§ Î¿¬» êë¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êêÍµ·¼¬»»®ô Ý¿¬ îìê ±® »¯«·ª¿´»²¬ êê¿Ü¿·´§ Î¿¬» êê¾É»»µ´§ Î¿¬» êê½Ó±²¬¸´§ Î¿¬» êê¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êéÍµ·¼¬»»®ô Ý¿¬ îëê ±® »¯«·ª¿´»²¬ êé¿Ü¿·´§ Î¿¬» êé¾É»»µ´§ Î¿¬» êé½Ó±²¬¸´§ Î¿¬» êé¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êèÍµ·¼¬»»®ô Ý¿¬ îêî ±® »¯«·ª¿´»²¬ êè¿Ü¿·´§ Î¿¬» êè¾É»»µ´§ Î¿¬» êè½Ó±²¬¸´§ Î¿¬» êè¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° êçÍµ·¼¬»»®ô Ý¿¬ îéî ±® »¯«·ª¿´»²¬ êç¿Ü¿·´§ Î¿¬» êç¾É»»µ´§ Î¿¬» êç½Ó±²¬¸´§ Î¿¬» êç¼Ü»´·ª»®§ ÚÑÞ Ü»²¬±² ú Ð·½µóË° ß¼¼»²¼«³ ýïÇ»Ò± Ü»´·ª»®§ ½¿² ¾» ³¿¼» ·² ÁÁÁÁÁÁ ¼¿§ º®±³ í ¼¿§ °»® í ¼¿§ °»® ®»½»·°¬ ±º ±®¼»®ò °»½°»½ AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007Questions regarding this report may be directed to DEPARTMENT: Finance DepartmentScott Payne at 349-7836 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting requests for proposals and awarding a contract for the purchase of Individual and Aggregate Stop Loss Insurance for the City of Denton; providing for the expenditure of funds therefore; and providing an effective date (RFP 3832-Individual and Aggregate Stop Loss Insurance awarded to ING Employee Benefits with a cost of $41.70 per employee per month for an estimated annual cost of $521,917.20). BACKGROUND On December 19, 2006, the Council gave direction to staff to move forward with transitioning from the current fully-insured health benefits program to a self-funded health benefits program. In March of 2007, a Request for Proposal (RFP) #3832 was submitted for administrative service providers for self-funded health and pharmacy benefits. As a result of this process, on June 19, 2007, Council extended authority to staff to begin contract negotiations with Fiserv Health for the provision of self-funded health benefits administration and with Express Scripts, Inc., for self-funded pharmacy benefit management services. Staff is continuing to work with both companies to finalize contracts that will be brought forward for Council approval in the near future. Another major component in the transition to a self-funded health and pharmacy benefits program is the acquisition of plan stop loss insurance. Stop loss insurance provides a cap on medical expenses paid out by the City, on both an individual plan member and aggregate basis during the plan year. Individual, or specific, stop loss insurance (ISL) provides a maximum amount ($100,000 - $150,000 - $175,000) that the employer pays for medical expenses for any one person (employee, retiree, dependent) in a plan year. Once expenses exceed this cap, the costs become the responsibility of the stop loss insurance company, on a reimbursement basis. Additionally, aggregate stop loss (ASL) provides protection for the health plan in totality. If the total medical costs exceed a pre-determined threshold during the plan year, those expenses become the responsibility of the stop loss insurance company, on a reimbursement basis, up to $1,000,000. This pre-determined threshold is typically based on some percentage (10% - 20% - Agenda Information Sheet October 2, 2007 Page 2 BACKGROUND (CONTINUED) In July of 2007, the City sent out RFP #3832 - Individual and Aggregate Stop Loss Insurance. The City received three responses as detailed below: 1. HCC Life Insurance Company (Addison, Texas) 2. ING Employee Benefits (Minneapolis, Minnesota) 3. Fiserv Health (Wausau, Wisconsin) Fiserv submitted responses on behalf of AJ Underwriters, LLC, BP Inc., and HCC Life Insurance Company. The HCC Life Insurance quote provided by Fiserv is identical to the proposal HCC submitted directly to the City. Each of the responses provided proposals with individual (specific) stop loss levels of $100,000, $150,000 and $175,000 and an aggregate stop loss corridor (threshold) of 25%. These options were also presented with both a 12/12 and 12/15 contract option. These contract options refer to the number of months in which claims must be both incurred and paid. For example, the 12/12 option states that the stop loss insurance company will be responsible for those medical expenses above the individual and aggregate levels that are incurred during the 12 months of the plan year and also paid within those same 12 months. Under this option, expenses for medical services that are provided in November or December of the plan year, but are not actually paid for by the administrator (TPA) until possibly January or February, would not be eligible for reimbursement under the stop loss insurance policy. The 12/15 option provides that the medical expenses must still be incurred in the 12 months of the plan year but provides 15 months in which those claims can be paid. Under this option, medical expenses incurred up through the end of December would have until the end of March to get paid and still be eligible for stop loss reimbursement. Attachment 1 provides a detailed comparison grid showing the various proposals and options. RECOMMENDATION Excluding the Fiserv quote on behalf of HCC Life Insurance (since that quote was identical to the one submitted directly by HCC), the responses to the RFP yielded 23 variations to be considered. It is the recommendation of our consultant, McGriff, Seibels and Williams, that those quotes on 12/12 contract basis not be considered. While the annual estimated fixed and overall maximum plan costs are less under the 12/12 proposals, it is actually an artificial savings. The stop loss companies are willing to offer lower rates because they will only be responsible for 9-10 months of claims due to the time lag between when a medical service is provided and when the bill is ultimately received and paid by our TPA. The 12/12 contract may provide some cost savings in the first year, but there is the possibility that 2-3 months of claims would not be covered under the stop loss policy. Agenda Information Sheet October 2, 2007 Page 3 RECOMMENDATION (CONTINUED) Of the remaining variations, the main factor to be evaluated is the level of individual (specific) exposure the City wishes to retain under our self-funded program. Obviously, the lower the ISL retention, the higher the fixed premium costs and vice versa. Based on our medical cost history and experience with similarly sized cities, it is the recommendation of staff and our consultant that the City choose the $150,000 ISL level. In narrowing the focus of our evaluation to the $150,000 ISL level with a 12/15 contract, it appears that ING Employee Benefits provided the most cost effective proposal. The total stop loss premium for ING Employee Benefits is $16,521 more expensive than the proposal submitted by Fiserv, on behalf of BP Inc., but ING provides a potential savings of $362,745 in terms of total maximum plan costs (stop loss premiums + administrative expenses + ASL attachment point). Therefore, staff recommends awarding a contract for individual and aggregate stop loss insurance to ING Employee Benefits, with a $150,000 individual (specific) limit, a 25% aggregate corridor, and a 12/15 contract period. The cost for the individual (specific) stop loss is $40.20 per covered employee/retiree per month with an estimated annual cost of $503,143.20 (based on 1,043 covered employees/retirees). The cost for the aggregate stop loss is $1.50 per covered employee/retiree per month with an estimated annual cost of $18,774 (based on 1,043 covered employees/retirees). The total annual cost for stop loss insurance is estimated to be $521,917.20. ESTIMATED SCHEDULE OF PROJECT October 2, 2007 Present stop loss insurance proposals for Council approval October 2, 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. On June 19, 2007, Council extended support to begin contract negations with Fiserv and Express Scripts to provide self-funded medical plan administrative services. Agenda Information Sheet October 2, 2007 Page 4 FISCAL INFORMATION Funds for stop loss insurance for FY 07/08 have been budgeted in account 850500.6712. The estimated nine months of premium that will be paid in FY 07/08 is approximately $73,560 less than the amount budgeted. The 12-month premium of $521,917.20 is approximately $94,760 less than the amount used in our calculations of potential savings under the self-funded program. BID INFORMATION The RFP and Vendor List is available should the Council wish to review them. Respectfully submitted: ______________________________ Scott Payne Risk Manager Attachment 1 Stop Loss Analysis Summary RFP #3832 ORDINANCE NO. ________________ AN ORDINANCE ACCEPTING REQUESTS FOR PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF INDIVIDUAL AND AGGREGATE STOP LOSS INSURANCE FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 3832-INDIVIDUAL AND AGGREGATE STOP LOSS INSURANCE AWARDED TO ING EMPLOYEE BENEFITS WITH A COST OF $41.70 PER EMPLOYEE PER MONTH FOR AN ESTIMATED ANNUAL COST OF $521,917.20. WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of individual and aggregate stop loss insurance in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation 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 items in the following numbered request for proposal for materials, Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 3832 ING Employee Benefits $41.70/employee/month SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By 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 the day of , 2007. ______________________________ PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:____________________________________ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: _________________________________ AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider approval of tax refunds for the following property taxes: Tax Name Reason Amount Year 1. Auto Zone DCAD Supplemental Change 2006 $ 686.89 2. Auto Zone DCAD Supplemental Change 2005 $ 648.81 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. Refunds due to court order change in value. FISCAL INFORMATION The tax overpayment revenue fund would be reduced by $1,335.70. Respectfully submitted: Bryan Langley Director of Finance AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Solid Waste ACM: Howard Martin, Utilities 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance authorizing the City Manager or his designee to cancel the balance of the non-performed portion of Purchase Order No. 123460 to Jamail Construction Company and pay over the funds held as retainage by the City of Denton to Jamail Construction Company, and to deny the proposed Change Order No. 2 submitted by Jamail Construction Company for the design-build of the landfill scale house; authorizing the Purchasing Department and the Solid Waste Department to re-bid the construction phase of the landfill scale house project; and providing an effective date (cancellation of the balance of Purchase Order No. 123460 to the non-performed portion of the purchase order to Jamail Construction Company regarding the landfill scale house project, and payment of the remaining retainage amount held by the City of Denton over to Jamail Construction Company). (The Public Utilities Board recommends approval 6-0.) BACKGROUND The scale house design/build purchase order was approved by the Public Utilities Board at their meeting of June 13, 2005, and awarded by the City Council at their meeting of July 19, 2005. Project Change Order No. 1 was approved by the City Council at their meeting of June 20, 2006, in the amount of $38,870 to provide civil engineering and survey for the site increasing the project to the total amount of $335,308. Jamail submitted an additional change order for $81,062.00. Since this change order exceeds 25% of the purchase order amount, staff has reviewed the request and conferred with Purchasing and the City Attorney’s office to determine how to proceed. OPTIONS The original purchase order to Jamail Construction was issued through an inter-governmental local agreement with Denton County. Denton County no longer has a contract with Jamail Construction Company, so the City no longer has an inter-governmental local agreement with Denton County for construction services with Jamail Construction that will allow adjustment of the purchase order amount. Jamail has performed the pre-construction portions of the purchase order. At this point staff recommends the cancellation of the construction portion of the purchase order and bidding out the construction portion. RECOMMENDATION The Solid Waste staff recommends the cancellation of the remaining balance of the purchase order number 123460. City staff desires to rebid the construction phase of the project. PRIOR REVIEW The scale house construction contract was recommended by the Public Utilities Board at their meeting of June 12, 2006, and awarded by the City Council at their meeting of June 20, 2006. The cancellation of the balance of the non-performed portion of the purchase order to Jamail Construction Company for the design/build of the Landfill Scale House was an agenda item at the Public Utilities Board meeting of September 24, 2007. FISCAL INFORMATION The Jamail Construction Company design/build project amount currently totals $335,308. Bond funds to construct the project are available in job cost account number 660023583.1360.30100. EXHIBITS 1.Scale House Change Order # 2 Material and Labor Increases 2.Ordinance 3.PUB Minutes Respectfully submitted: A. Vance Kemler Director of Solid Waste Û¨¸·¾·¬ ï Û¨¸·¾·¬ î ORDINANCE NO. 2007-________ AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO CANCEL THE BALANCE OF THE NON-PERFORMED PORTION OF PURCHASE ORDER NO. 123460 TO JAMAIL CONSTRUCTION COMPANY AND PAY OVER THE FUNDS HELD AS RETAINAGE BY THE CITY OF DENTON TO JAMAIL CONSTRUCTION COMPANY, AND TO DENY THE PROPOSED CHANGE ORDER NO. 2 SUBMITTED BY JAMAIL CONSTRUCTION COMPANY FOR THE DESIGN-BUILD OF THE LANDFILL SCALE HOUSE; AUTHORIZING THE PURCHASING DEPARTMENT AND THE SOLID WASTE DEPARTMENT TO RE-BID THE CONSTRUCTION PHASE OF THE LANDFILL SCALE HOUSE PROJECT; AND PROVIDING AN EFFECTIVE DATE (CANCELLATION OF THE BALANCE OF PURCHASE ORDER NO. 123460 TO THE NON-PERFORMED PORTION OF THE PURCHASE ORDER TO JAMAIL CONSTRUCTION COMPANY REGARDING THE LANDFILL SCALE HOUSE PROJECT, AND PAYMENT OF THE REMAINING RETAINAGE AMOUNT HELD BY THE CITY OF DENTON OVER TO JAMAIL CONSTRUCTION COMPANY). WHEREAS, on July 19, 2005 the design-build purchase order for the landfill scale house (Purchase Order No. 123460) was submitted and approved by the City Council, in the amount of $ 296,438, by Ordinance No. 2005-187; and WHEREAS, on June 20, 2006 project Change Order No. 1 to said bid was submitted to the City Council and was approved by the City Council, in the amount of $38,870, by Ordinance No. 2006-166; the total of such purchase order together with change order, then totaled $335,308; and WHEREAS, on June 18, 2007 the vendor, Jamail Construction Company submitted to Staff its requested Change Order No. 2 to the aforesaid purchase order and requested that the city approve yet another change order (Change Order No. 2) in the amount of $81,062, which would bring the total amount authorized by such purchase order and two change orders to $416,370; and after analyzing all relevant facts and circumstances, and considering such Change Order No. 2, Staff is of the opinion that once the retainage amount held by the City is paid to Jamail Construction Company, the remaining unspent balance of Purchase Order 123460, should be in all things cancelled and that the matter of the construction phase of the project be sent out for re-bid; and WHEREAS, Staff, having recommended that the balance of the remaining non-performed portion of the purchase order be cancelled and that the matter of construction for the project should be re-bid; and the Public Utilities Board having favorably considered and unanimously approved the recommendation of Staff at its meeting of September 24, 2007; and the recommendation of the City Manager concurring with Staff and the Public Utilities Board; the City Council is of the opinion that the best interests of the citizens of Denton, Texas is served by cancelling the balance of the remaining non-performed portion of the purchase order and by re-bidding the construction phase of the project; NOW, THEREFOR, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Purchase Order No. 123460 is hereby cancelled and the funds held by the City as retainage under said purchase order shall be surrendered to Jamail Construction Company. SECTION 2. Change Order No. 2, proposed on the project by Jamail Construction Company is hereby denied in its entirety; and the City Manager, or his duly authorized representative, is authorized to communicate that fact, in writing, to Jamail Construction Company. SECTION 3. The construction phase of the design-build project of the Landfill Scale House project shall be re-bid. SECTION 4. 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: _________________________________ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: _________________________________ Û¨¸·¾·¬ í 1 2DRAFT MINUTES 3PUBLIC UTILITIES BOARD 4September 24, 2007 5 6 7After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 8present, the Chair of the Public Utilities Board convened into an Open Meeting on Monday, 9September 24, 2007 at 9:00 a.m. in the Service Center Training Room, City of Denton Service 10Center, 901-A Texas Street, Denton, Texas. 11 Present: 12Chair Charldean Newell, Phil Gallivan, Bill Cheek, John Baines, Randy Robinson 13and Bill Grubbs 14 Absent 15: Dick Smith, excused 16 17 Ex Officio Members: 18 George C. Campbell, City Manager, excused 19 Howard Martin, ACM Utilities 20 214) Consider recommending approval of the cancellation of the balance of the non-preformed 22portion of the purchase order to Jamail Construction Company for the design/build of the 23landfill Scale House. 24 25Chair Newell stated that the caption and backup information should read “non-performed 26portion” in place of “non-preformed portion”. ACM Martin called on Vance Kemler, Director 27of Solid Waste, to present this item. 28 29Kemler stated that the purchase order to Jamail Construction Company for the design/build of 30the landfill scale house was ordered two years ago, utilizing Jamail as a vendor with which 31Denton County held a contract. On this purchase order in 2005 Jamail began plotting and 32planning for the scale house and an estimated cost for construction was provided. The City 33recently approved the plotting and planning, however, the estimates provided are no longer 34accurate under the current market costs due to length of time since the original estimate was 35provided. Jamail submitted a change order request to increase the estimate. There is not a 36method in place to increase the amount of this purchase order since there is not a contract or 37legal instrument in place for this project with Jamail. Therefore, staff is requesting to cancel the 38non-performed portion of this purchase order and open a bid process to complete the 39construction. 40 41Board Member Phil Gallivan questioned the investment so far with Jamail. Kemler responded 42the three invoices paid to date total $94,020.30, including a 5% retainage fee. Nothing more is 43owed. 44 45 Public Utilities Board Agenda September 24, 2007 2 of 2 1Board Member Randy Robinson requested confirmation that the new construction cost would be 2in the $350,000 range. Kemler stated the amount should be in that range. 3 4Board Member Gallivan questioned if Jamail was no longer under contract with Denton County 5due to inferior work. Kemler responded it was not due to inferior work, but he was unaware of 6why they are no longer under contract. 7 Board Member Robinson moved to approve with a second from Board Member Gallivan. 8 The motion was approved by a 6-0 vote. 9 10 11 AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Parks and Recreation ACM: Howard Martin, 349-8232 SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of the United Way Masquerade Ball and Halloween Event, sponsored by NUCONSTEEL Commercial Corporation. The event will be held at the County Courthouse-on-the-Square on Wednesday, October 31, 2007, from 6:00 p.m. to 10:30 p.m. The exception is specifically requested to increase hours of operation for amplified sound from 10:00 p.m. until 10:30 p.m. and to increase the allowable decibels for an outdoor concert from 70 to 72. BACKGROUND The Masquerade Ball and Halloween Event will allow the community to contribute to the United Way of Denton County. The event will provide children the opportunity to play games and to trick-or-treat at the United Way agency booths. The masquerade ball and reception will be held inside the Courthouse and continue onto the lawn area. A dance floor will be set up for Brave Combo’s outdoor performance. Other activities will include a large haunted house in the basement of the Courthouse, jugglers, a mime, magicians, costume contest, and a treasure hunt. There will be clues for treasure hunters that will lead five citizens to keys that will be hidden throughout the city. Each individual will have a chance to try their key to open a lock-box. The winner will receive a cash prize of $1,857. The amount of $1,857 is tied to the city’s Sesquicentennial Celebration. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None EXHIBITS 1.Letter of Request from NUCONSTEEL Commercial Corporation Respectfully submitted: Emerson Vorel Director of Parks & Recreation Prepared by: Janie McLeod Community Events Coordinator Û¨¸·¾·¬ ï CITY OF DENTON CITY COUNCIL MINUTES August 21, 2007 After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Work Session on Tuesday, August 21, 2007 at 4:30 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, Thomson, and Watts. ABSENT: None. 1.Staff responded to requests for clarification of agenda items listed on the agenda for August 21, 2007. 2.The Council received a report, held a discussion and gave staff direction regarding the City’s recycling programs. Vance Kemler, Director of Solid Waste, presented an overview of the recycling program. He stated that the City had implemented on-going public education and awareness activities. Residential Curbside Collection provided recycling services to about 26,000 accounts and Commercial Recycling Services provided services to about 2500 accounts. The City had six locations that provided recycling services to some local businesses, local government facilities, and operated the City’s recycling drop-off centers. The City also had a Home Chemical Collection Service. He stated that combined with the curbside recycling RFP, were requests for three other recycling services. The city additionally requested proposals for cart maintenance services, recycling drop-off center services, and a single stream recyclables processing facility. Curbside recycling proposals were received from three companies. The proposal evaluated by the committee to provide the best benefit to the city was submitted by Allied Waste Services. The monthly rate would be $2.27/month per residence. Cart maintenance services proposals were received from two companies. The committee evaluated the proposals and did not recommend either proposal. City staff could provide the cart maintenance services more efficiently. One recycling drop-off center proposal was received. The proposal received proposed less than one-half the current container capacity provided by the City. The committee recommended that the services continue to be provided by City staff. One Materials Recovery Facility proposal was received. Staff’s review of the proposal was favorable and staff was developing a contract for the project. 3.The Council received a report, held a discussion, and gave staff direction regarding the participation of other agencies in the new animal shelter. City of Denton City Council Minutes August 21, 2007 Page 2 Lieutenant Scott Fletcher, Police Department, stated that the City had entered into an agreement with the Denton Animal Shelter Foundation. This organization had agreed to conduct a fundraising campaign to help build the new shelter. The next step would be the completion of a master plan for the new shelter. This plan would determine the size and amenities of the new shelter, which was required before the cost of the new shelter could be determined. Fletcher stated that the size for the new shelter was determined by examining historical growth trends, current space needs and the anticipated growth trend for the next ten years. Interlocal agencies provided approximately 30 percent of the animals handled in the shelter each year. Current interlocal agreements were with Denton County, Roanoke, Corinth, and Krum. Fletcher advised the Council that provided the interlocal agreements continued, the issue of capital costs could be examined. Because there is no outstanding capital debt on the current shelter structure, there was no capital cost recovery passed on to the interlocal agencies. The City could opt to ask each interlocal agency to finance their percentage of the capital costs of the new structure. However, it would be difficult for the City to be released from such an agreement, particularly if those agencies had made financial contributions on the capital project. The current interlocal agreements provided for each agency to be billed monthly per animal/per service. The majority of the costs for interlocal agency animals were recovered. Under the current billing structure, each agency was billed for the past month’s services. It was difficult for the interlocal agencies to plan and budget for unknown expenses. City staff members spent considerable time each month tracking and compiling billing information for each interlocal agency animal. He also stated that there were a number of animal shelters that provided shelter space for other agencies that utilized an annual flat fee structure. Consensus of the Council was to continue the current interlocal agreements as long as the City shelter had space available and develop an annual flat fee cost to charge the interlocal agencies. 4.The Council received a report, held a discussion, and gave staff direction regarding the 2007-08 Budget and the Capital Improvement Program. Council did not have any questions regarding the budget. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:55 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 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 City of Denton City Council Minutes August 21, 2007 Page 3 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 Aldi (Texas) L.L.C. with respect to development of a distribution center. This discussion included commercial and financial information the City Council had received from Aldi (Texas) L.L.C., 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 was conducting economic development negotiations; including the offer of financial or other incentives. B. Consultation with Attorney – Under TEXAS GOVERNMENT CODE Section 551.071. 1. Considered and discussed status of litigation styled McFarling, et al. v. City of Denton, Cause No. 02-06-00238-CV, currently pending in the Court of Appeals, Second District of Texas, Fort Worth Division. C. Consultation with Attorney -- Under Tex. Gov’t Code §551.071. 1. Discussed legal issues relating to City oil and gas leases, including contemplated litigation, and including 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 chapter. Regular Meeting of the City of Denton City Council on Tuesday, August 21, 2007 at 6:49 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 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 There were no proclamation/awards for this meeting. B.July and August Yard-of-the-Month Awards Mayor McNeill presented July Yard of the Month Awards for: Michael Ebron – 605 Smith Street Sharon & Dick Williams – 3713 Granada Trail Phil Shenk – 3937 Fawn Drive Patti & Bob VonTour – 1548 Valley Creek City of Denton City Council Minutes August 21, 2007 Page 4 Mayor McNeill presented August Yard of the Month Awards for: Michael & Jaylyn Curry – 2131 Westview Trail Ted & Cindy Sherrill – 709 Ticonderoga Mr. & Mrs. Carroll Goen – 2900 Pennsylvania Windy & Joan Fowler – 3116 Deerfield Drive 3. CONSENT AGENDA Mayor McNeill highlighted the items for consideration on the Consent Agenda. Deputy Mayor Pro Tem Mulroy requested that Item 3E be pulled for individual consideration. Mulroy motioned, Heggins seconded to approve the Consent Agenda with the exception of Item 3E. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor McNeill “aye”. Motion carried unanimously. A. 2007-169 – An ordinance of the City of Denton, Texas, amending the Code of Ordinances of the City of Denton, by amending Chapter 18 Article IX, Automated Traffic Signal Enforcement; providing a severability clause; providing for the imposition of a civil penalty of $75.00; and providing an effective date. B. Approved the appointment of an assistant judge to serve as a hearing officer in compliance with the adoption of an ordinance amending Chapter 18 Article IX, relating to automated traffic signal enforcement. C. 2007-170 – An ordinance approving a mutual aid agreement between the City of Denton and Denton Independent School District for mass evacuation during times of catastrophic events, emergencies or disasters; and providing for an effective date. D. Approved a request for an exception to the Noise Ordinance for amplified sound on Sunday, September 23, 2007, for the Texas Bicycle Racing Association event hosted by the Greater Denton Sports Commission. The event will be held from 12:00 noon until 7:00 p.m. and will cover several of the downtown streets. Public address system will be used to make announcements and conduct the races. F. 2007-171 – An ordinance of the City of Denton, Texas approving an agreement between the City of Denton and the Denton Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source, in accordance with the provisions of the state law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3858-Agreement with the Denton Record Chronicle in the amount of $8.40 per column inch for an estimated award of $35,000). G. 2007-172 – An ordinance of the City of Denton, Texas authorizing the City Manager to execute an agreement for Deposit of Costs for Perimeter Paving with AHY, LC; and providing an effective date. City of Denton City Council Minutes August 21, 2007 Page 5 H. 2007-173 – An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Texas Filmmakers to support the 2007 Thin Line Film Festival Celebration; providing for the expenditure of funds therefore; and providing for an effective date. ($100) I. 2007-174 – An ordinance authorizing the City Attorneys to initiate litigation against Range Resources, it’s successors and assigns; authorizing the City Attorney to seek the assistance of outside counsel; and providing an effective date. Item 3E was considered. E. An ordinance approving the expenditure of funds for the purchase of educational commercial airtime for Denton Municipal Electric available from only one source in accordance with the provisions for state law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3849– Purchase of Educational Commercial Airtime for Denton Municipal Electric awarded to Time Warner Cable Media Sales in an amount not to exceed $51,272). The Public Utilities Board recommended approval (4-0). Mulroy motioned, Kamp seconded to continue Item 3E to the next Council meeting. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor McNeill “aye”. Motion carried unanimously. 4.PUBLIC HEARINGS A. The Council held the second of two public hearings to consider, under the annexation procedures for areas exempted from the municipal annexation plan, the annexation and service plan for approximately 129.6 acres of land and the adjacent street right-of-way for Loop 288 containing approximately 9.1 acres generally located west of Interstate 35 North at the proposed extension of Loop 288 in the northwestern portion of Denton's Extraterritorial Jurisdiction (ETJ). (A07-0001, Westview Commercial) The Planning and Zoning Commission recommended approval (5-0). Brian Lockley, Interim Director of Planning and Development, stated that this was a voluntary annexation for the Westview Commercial property, and included the City’s elevated water tank property and the Texas Department of Transportation’s adjacent street right-of-way for Loop 288. The majority of the property was undeveloped with the exception of one gas well site and the City’s elevated water storage tank. He stated that the entire area proposed for annexation was located within the City’s ETJ and was not zoned. The area would not require short-term public improvements that were the responsibility of the City. The proposed annexation area would add additional tax base to the City. The Mayor opened the public hearing. City of Denton City Council Minutes August 21, 2007 Page 6 No one spoke at the public hearing The Mayor closed the public hearing. B. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas designating a certain area within the city limits of Denton as Reinvestment Zone VIII for commercial/industrial tax abatement; establishing the boundaries of such zone; making findings required in accordance with Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto; providing a severability clause; providing for repeal; and providing an effective date. Linda Ratliff, Director of Economic Development, stated that this item was to establish Reinvestment Zone VIII. The property included within the boundaries represented a 120-acre site on Westcourt Road and Spring Side Road. Establishing the reinvestment zone would allow the Council to consider a tax abatement agreement with Aldi (Texas), a Texas limited liability company. The company planned to construct a distribution center of approximately 500,000 square feet at this site. The Mayor opened the public hearing. No one spoke at the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2007-175 AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO. VIII FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING OTHER MATTERS RELATING THERETO; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING AN EFFECTIVE DATE. Mulroy motioned, Thomson seconded to adopt the ordinance. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye” and Mayor McNeill “aye”. Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance authorizing the Mayor to execute a Tax Abatement Agreement with Aldi (Texas) L.L.C.; setting forth all the required terms of the Tax Abatement Agreement in accordance with the terms of Chapter 312 of the Texas Tax Code; setting forth the various conditions precedent to Aldi (Texas) L.L.C., a Texas limited liability company, receiving the Tax Abatement; providing for a severability clause; and providing an effective date. The Economic Development Partnership Board recommended approval (6-0). City of Denton City Council Minutes August 21, 2007 Page 7 Linda Ratliff, Director of Economic Development, stated that Aldi was interested in constructing a 500,000 square foot distribution center on Westcourt Road near the Denton Municipal Airport. She stated that the tax abatement agreement provided for 100% abatement for building and improvements and tangible personal property for a period of five years. If approved, Aldi intended to purchase the property, obtain their zoning, final plat and building permit. The company had an aggressive construction plan and planned to open the distribution center and 20- 24 new grocery stores in the Metroplex in 2009.Two Denton stores were included in their plan. The following individuals spoke regarding this item. Karen Dickson, 1506 Poinsettia, spoke in favor of the tax abatement agreement. The following ordinance was considered: NO. 2007-176 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH ALDI (TEXAS) L.L.C.; SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDITIONS PRECEDENT TO ALDI (TEXAS) L.L.C., A TEXAS LIMITED LIABILITY COMPANY, RECEIVING THE TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye” and Mayor McNeill “aye”. Motion carried unanimously. B. The Council considered approval of a resolution placing a proposal on the September 25, 2007, City Council agenda to adopt a 2007 tax rate that would exceed the effective tax rate; calling two public hearings on a tax increase to be held September 11, 2007, and September 18, 2007; requiring publication of a Notice of Public Hearing on Tax Increase in accordance with the law; and providing an effective date. Bryan Langley, Director of Finance, stated that municipalities were required to publish their rollback tax rates in the newspaper, along with the effective tax rate and other required schedules. He stated that the City’s effective rate was $0.58719/$100 valuation and the rollback rate was $0.68627/$100 valuation. Robert Donnelly, 3900 Quail Creek Road, spoke regarding drainage improvements covered by the one cent tax increase. The following resolution was considered: NO. R2007-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 25, 2007, CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2007 TAX RATE THAT WILL EXCEED THE LOWER OF THE City of Denton City Council Minutes August 21, 2007 Page 8 ROLLBACK RATE OR THE EFFECTIVE TAX RATE; CALLING TWO PUBLIC HEARINGS ON A TAX INCREASE TO BE HELD ON SEPTEMBER 11, 2007, AND SEPTEMBER 18, 2007; REQUIRING PUBLICATION OF A NOTICE OF PUBLIC HEARINGS ON A TAX INCREASE IN ACCORDANCE WITH THE LAW; AND PROVIDING AN EFFECTIVE DATE. Heggins motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye” and Mayor McNeill “aye”. Motion carried unanimously. C. The Council considered adoption of an ordinance directing the publication of Notice of Intention to issue certificates of obligation totaling approximately $7,065,000 for miscellaneous drainage improvements; and providing for an effective date. Bryan Langley, Director of Finance, stated that during the recent budget development process, it was determined that additional funding was needed to construct various drainage improvements throughout Denton. The 2007-08 proposed budget included a one cent tax increase to support the issuance of Certificates of Obligation. The bond proceeds would provide funding for the following drainage projects: Mingo Road and Paisley, Ector Street, Kings Row at Cooper Branch, Magnolia Street Drainage, Cooper Creek improvements and Pecan Creek improvements. The following ordinance was considered: NO. 2007-177 AN ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION TOTALING APPROXIMATELY $7,065,000 FOR MISCELLANEOUS DRAINAGE IMPROVEMENTS; AND PROVIDING FOR AN EFFECTIVE DATE. Mulroy motioned, Thomson seconded to adopt the ordinance. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye” and Mayor McNeill “aye”. Motion carried unanimously. D. The Council considered adoption of an ordinance accepting proposals and awarding a contract for the purchase of “Residential Curbside Single-Stream Recycling Collection and Processing Services” to those Denton Residential Solid Waste Customers as determined by the City Council; providing for the expenditure of funds therefor; and providing an effective date (Request for Proposal No. 3811 [Item 1 of RFP only – “Residential Curbside Single-Stream Recycling Collection and Processing Services; awarded to Allied Waste Services, Inc., dba Allied Waste Systems of Justin). The Public Utilities Board recommended approval (4-0). Vance Kemler, Director of Solid Waste, stated that the existing curbside recycling contract ended on November 4. He stated that the RFP included the curbside recycling contract, cart maintenance services, recycling drop-off center services, and a single stream recyclables processing facility. City of Denton City Council Minutes August 21, 2007 Page 9 Kemler stated that staff recommended the residential curbside recycling contract be awarded to Allied Waste Services. Staff and the selection committee did not recommend a cart maintenance services contract be awarded, and that those services would be provided by the City’s solid waste staff. Staff and the selection committee did not recommend the drop-off recycling services proposal be awarded, and that the City’s recycling division would provide those services. He also stated that staff and the selection committee recommended that city staff continue discussions with Pratt Industries concerning their proposal for the construction and operation of a MRF. Robert Donnelly, 3900 Quail Creek Rd, spoke regarding this item. The following ordinance was considered: NO. 2007-178 AN ORDINANCE ACCEPTING PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF “RESIDENTIAL CURBSIDE SINGLE-STREAM RECYCLING COLLECTION AND PROCESSING SERVICES” TO THOSE DENTON RESIDENTIAL SOLID WASTE CUSTOMERS AS DETERMINED BY THE CITY COUNCIL; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (REQUEST FOR PROPOSAL NO. 3811 [ITEM 1 OF RFP ONLY – “RESIDENTIAL CURBSIDE SINGLE-STREAM RECYCLING COLLECTION AND PROCESSING SERVICES; AWARDED TO ALLIED WASTE SERVICES, INC., DBA ALLIED WASTE SYSTEMS OF JUSTIN). Kamp motioned, Thomson seconded to adopt the ordinance. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye” and Mayor McNeill “aye”. Motion carried unanimously. E. The Council considered nominations/appointments to City boards and commissions. Council Member Montgomery nominated Jim Strange to the Construction Advisory and Appeals Board. On roll vote, Heggins “aye”, Kamp “aye”, Montgomery “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor McNeill “aye”. Motion carried unanimously. F. Citizen Reports 1. Council reviewed the procedures for addressing the City Council. 2. The Council received citizen reports from the following: A. Marti Settle regarding storage trailers in front yards. Ms. Settle, 904 Skylark, stated that she had purchased a lot on Valley Creek and was building a house. She expressed concerns that the neighborhood had a lot of homes with trailers parked on improved surfaces in the front yard. She requested that the Council consider revising the ordinance. City of Denton City Council Minutes August 21, 2007 Page 10 B. Nell Yeldell regarding the City tapping into people’s phone lines. Ms. Yeldell was not at the meeting. C. Yolanda Dale regarding the MLK Center manager. Ms. Dale, 3336 Brooke Street, spoke in support of hiring Bobby Givens as the MLK Center Manager. D. Patsy Brooks regarding the MLK Center Manager. Ms. Brooks, 1208 Polk Street, spoke in support of hiring Bobby Givens as the MLK Center Manager. E. Dorothy Schufford regarding the MLK Center manager. Ms. Schufford, 1400 E. University, #2210, spoke in support of hiring Bobby Givens as the MLK Center Manager. F. Thomas Murray regarding the MLK Center. Mr. Murray, 1400 E. University, #2210, spoke in support of hiring Bobby Givens as the MLK Center Manager. G. Shirley Hillman regarding the MLK Recreation Center manager’s position. Ms. Hillman, 921 Hill Street, requested that funding be placed in the budget for a full-time Manager at the MLK Center and that Bobby Givens be placed in that position. H. Willie Hudspeth regarding the manager of the Martin Luther King Center. Mr. Hudspeth, 623 Newton, spoke in support of hiring Bobby Givens as the MLK Center Manager. I. Marcella Franklin regarding the MLK Center management. Ms. Franklin, 317 Hill, stated that the MLK Center needed a full-time manager. G. New Business and Announcements Mayor McNeill requested a work session item on the September 11 agenda regarding special events. Mayor McNeill requested a memo with the pros and cons of paper ballots versus electronic voting. H. City Manager’s Report City of Denton City Council Minutes August 21, 2007 Page 11 City Manager Campbell did not have any items for Council. I. 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. J. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action from the Closed Meeting. With no further business, the meeting was adjourned at 7:55 p.m. ____________________________________ PERRY R. McNEILL MAYOR CITY OF DENTON, TEXAS ____________________________________ JANE RICHARDSON ASSISTANT CITY SECRETARY CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Economic Development CM: George Campbell ________________________________________________________________________ SUBJECT Consider approval of a resolution of the City Council of the City of Denton authorizing the acceptance of deed restrictions prohibiting the use of designated groundwater from beneath the property, containing approximately 8.22424 acres located at the southwest corner of Interstate 35 and US Highway 380, Denton, Texas as described in Exhibit “A,” to facilitate certification of a Municipal Setting Designation (“MSD”) of said property by the Texas Commission of Environmental Quality (“TECQ”), pursuant to the Texas Solid Waste Disposal Act; and providing for an effective date. BACKGROUND th In 2003, the 78 Texas Legislature passed a Municipal Setting Designation (MSD) law concerning requirements for removing contaminants from groundwater. The law authorizes the Texas Commission on Environmental Quality (TCEQ) to receive, process, and certify MSD applications for properties with contaminated groundwater that are located within the corporate limits or extraterritorial jurisdiction of municipalities. However, the TCEQ will only certify MSD applications if there is municipal support, which is typically demonstrated through a municipal resolution or ordinance. Because of this requirement, any person who wishes to pursue State certification of an MSD must gain municipal support. The MSD law provides a new alternative for persons who wish to voluntarily address groundwater contamination. In effect, the MSD law sets conditions for MSD property designations that limit the requirements for contaminated groundwater to be remediated to potable water standards. MSDs are applicable in cases where the designated groundwater is not currently used for potable water, and establish restrictive conditions that prohibit the future use of designated groundwater for potable purposes. This prohibition must be in the form of a restrictive covenant or ordinance that is enforceable by the City and filed in the property records The purpose of the MSD law is to provide a less expensive and faster alternative to existing state environmental regulations concerning groundwater. In general, the MSD law recognizes that in some locations, no one is using groundwater as a potable water source in the vicinity of a contaminated groundwater zone. The law further recognizes that use of the designated groundwater as a future potable source is unlikely because a public supply that relies on another source of water is available. In such cases, a prohibition is placed on the designated groundwater beneath the MSD property to prevent the use of the contaminated groundwater as a potable source. This MSD thus ensures that public health is protected by establishing a legal mechanism that eliminates the possibility of the designated groundwater being used for potable purposes. It is important to note that in addition to municipal support, the MSD is subject to all the additional requirements of TCEQ’s review and final approval. For example, if there is a well within one-half of a mile of the property that is used as a potable supply, then the extent of groundwater contamination must be determined and remediated in accordance with TCEQ policy. In addition, because both people and ecological receptors (fish, wildlife, etc) can be exposed to contamination in other ways, the law still allows the TCEQ to require investigation and remediation of contaminants for other concerns unrelated to potable water use. Examples of additional exposure pathways include inhalation of vapors originating from the groundwater or the discharge of groundwater into streams. The applicant, Standridge Companies, is seeking approval of a resolution (Exhibit 2) that establishes the terms and conditions of a MSD for the property located at the southwest corner of Interstate 35 and US Highway 380. This resolution indicates the City of Denton’s support of the MSD, and is required for the MSD to be certified by the TCEQ. The resolution sets forth the conditions of the designation, including the applicant’s requirements to establish the appropriate deed restrictions for the property, and will be used by the applicant as evidence of municipal support. However, the applicant is still obligated to meet all TCEQ regulations concerning groundwater contamination, investigation, and remediation actions prior to the TCEQ granting the MSD for the property. OPTIONS 1. Support the current resolution 2. Modify the resolution 3. Do not support the resolution RECOMMENDATION Staff recommends approval of the current resolution PRIOR ACTION/REVIEW (Council, Boards, Commissions) None. EXHIBITS Exhibit 1. Property map Exhibit 2. MSD Resolution Respectfully submitted, AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT - S07-0004 (Chi Alpha House) Hold a public hearing to consider the adoption of an ordinance regarding a Specific Use Permit (SUP) to allow a Semi-public, Halls, Clubs, and Lodges use, which includes a fraternity or sorority house. The subject property is located on the southeast corner of West Oak Street and Miller Street. The subject property is located within a Neighborhood Residential 3 (NR-3) zoning district. The Planning and Zoning Commission recommends denial of this SUP request (6-0). A super majority vote of all members of the City Council qualified to vote is necessary to adopt this SUP request. BACKGROUND Applicant: Messenger Fellowship Denton, TX The applicant is requesting an SUP to use an existing single-family dwelling unit as a fraternity or sorority house. The definition of a fraternity or sorority house by the Denton Development Code is as follows: the structure in which a student or professional organization formed chiefly to pursue common interests, be it cultural, religious, entertainment or social, and which has regular meetings, rituals, and formal membership requirements is housed. These structures also may provide housing to its members. Within an NR-3 zoning district, a Semi-public, Halls, Clubs, and Lodges use is permitted with the approval of an SUP. Semi-public, Halls, Clubs, and Lodges use include fraternity and sorority houses. On December 5, 2006, Code Enforcement received a call from a neighbor requesting that Code Enforcement investigate a potential illegal use. The neighbor stated that the owner of the house has installed a wall sign advertising a church (see Exhibit 6). Review by Building Inspection revealed that no Certificate of Occupancy was ever issued for a church use for the subject property. On December 19, 2006, Code Enforcement cited the applicant with a citation for an illegal use. After receiving the citation, the applicant met with staff to discuss a resolution. According to the applicant, they are a church and that there are five unrelated individuals living in the house. Staff informed the applicant that according to the Code a church cannot have residential dwelling units as part of the primary structure. In addition, according to the Code a single-family dwelling unit shall have no more than four unrelated individuals residing in the same dwelling unit. In order to comply with the Code as a church use, the individuals living in the house must cease residential occupancy. The applicant later changed their use from a church to a fraternity or sorority house. With an approved SUP allowing a Semi-public, Halls, Clubs, and Lodges use, which includes fraternity or sorority house the group can continue to have regular meetings and have the five unrelated individuals currently living in the house reside at the house. As a Semi-public, Halls, Clubs, and Lodges use, the home will no longer be considered a single- family residential use and would be considered a non-residential use. The applicant has agreed to comply with all the non-residential standards and regulations set forth in the Denton Development Code, Fire Code, and Building Code prior to obtaining a Certificate of Occupancy from Building Inspections. The applicant held neighborhood meetings on July 26, 2007 and August 13, 2007 at the subject property regarding the proposed Chi Alpha House. The main concerns from the property owners were the potential noise generated by fraternity and sorority activities, the increase parking demand, decrease of property value, and by granting the SUP this will create the opportunity for other non-residential uses to locate in the area. At the first neighborhood meeting there were four property owners that attended and their main concerns were noise generated by fraternity and sorority activities and increase parking demand. The applicant explained that there have not been any problems/complaints regarding noise generated from the current residents. However, the property owners are concern that the next fraternity or sorority that would occupy the house would not be as quiet. Staff suggested at the meeting that to ensure that noise would not be a potential problem with a different fraternity or sorority, this SUP will expire when the applicant, Chi Alpha House, vacates the property. The applicant agreed to include this as a condition for approval. Another concern from the property owners was increase parking demand. Staff explained that no new off-site parking would be required as a result of this SUP. At the second neighborhood meeting there were three property owners that attended and their main concerns were decrease of property value and by granting the SUP this will create the opportunity for other non-residential uses to locate in the area. The property owners expressed that the increase density and change of use to non-residential would decrease the property value in the area. Staff suggested at the meeting that there be a limit on how many people can reside at the house. The applicant suggested a condition for approval be that no more than six individuals are able to live at the house. In addition, the applicant has agreed to comply with all City standards, codes and regulations from a residential to a non-residential use to minimize the impact on the neighborhood. On August 22, 2007, during the Planning and Zoning Commission public hearing a citizen provided the Commission with a letter stating that the Chi Alpha is the student organization of the General Council of the Assemblies of God, a non-profit organization. The letter originated from the Chi Alpha Campus Ministries, USA. The same citizen provided documentation that the Chi Alpha Campus Ministries, USA non-profit corporation status has been dissolved and revoked due to failure to file a correct and current annual report. Staff contacted the Secretary of State of Missouri and verified the non-profit revocation status. Both letter and documentation is presented in Exhibit 13. Public notification information is provided in Exhibit 5. As of this writing, staff has received 12 responses in opposition from property owners within 200 feet of the subject site. Page - 2 PRIOR ACTION/REVIEW August 22, 2007 Planning and Zoning Commission Public Hearing OPTIONS 1.Approve as submitted. 2.Approve subject to conditions. 3.Deny. 4.Table item. RECOMMENDATION Planning and Zoning Commission recommends denial of this SUP request 6-0. EXHIBITS 1.Staff Analysis 2.Location Map 3.Existing Zoning Map 4.Future Land Use Map 5.Notification Information 6.Site Photos 7.Letter From Applicant 8.Letter From Chi Alpha Campus Ministries 9.Organization Registration Form 10.Site Plan 11.Responses to Public Hearing Notice 12.Planning and Zoning Commission Minutes, August 22, 2007 13.Materials received at the August 22, 2007 Planning and Zoning Commission Public Hearing 14.Ordinance Respectfully submitted: Brian Lockley, AICP Interim Director of Planning and Development Prepared by: Ron Menguit Planner III Page - 3 EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS CASE NO.: DATE TO BE CONSIDERED: S07-0004October 2, 2007 LOCATION: Southeast corner of West Oak Street and Miller Street APPLICANT: Messenger Fellowship 1907 West Oak Denton, TX 76201 OWNER: Messenger Fellowship 1907 West Oak Denton, TX 76201 REQUEST: Adopt an ordinance to regarding a Specific Use Permit (SUP) to allow a Semi-public, Halls, Clubs, and Lodges use, which includes a fraternity or sorority house. RECOMMENDATION: Planning and Zoning Commission recommends denial of this SUP request 6-0. Neighborhood Residential 3 ZONING DISTRICT: The subject site is located within a (NR-3) zoning district. Existing Land Use COMPREHENSIVE The subject site is located within an future land PLAN DESIGNATION: use designation. SITE AND SURROUNDINGS: The subject site is developed with an existing single-family residential dwelling unit. North: Neighborhood Residential 3 (NR-3) – existing single-family residential dwelling unit South: Downtown Residential 2 (DR-2) - existing single-family residential dwelling unit East: Neighborhood Residential 3 (NR-3) – existing single-family residential dwelling unit West: Neighborhood Residential 3 (NR-3) – existing single-family residential dwelling unit BACKGROUND The applicant is requesting an SUP to use an existing single-family INFORMATION: dwelling unit as a fraternity or sorority house. The definition of a fraternity or sorority house by the Denton Development Code is as follows: the structure in which a student or professional organization Page - 4 formed chiefly to pursue common interests, be it cultural, religious, entertainment or social, and which has regular meetings, rituals, and formal membership requirements is housed. These structures also may provide housing to its members. Within an NR-3 zoning district, a Semi-public, Halls, Clubs, and Lodges use is permitted with approval of an SUP. Semi-public, Halls, Clubs, and Lodges use include fraternity and sorority houses. On August 22, 2007, during the Planning and Zoning Commission public hearing a citizen provided the Commission with a letter stating that the Chi Alpha is the student organization of the General Council of the Assemblies of God, a non-profit organization. The letter originated from the Chi Alpha Campus Ministries, USA. The same citizen provided documentation that the Chi Alpha Campus Ministries, USA non-profit corporation status has been dissolved and revoked due to failure to file a correct and current annual report. Staff contacted the Secretary of State of Missouri and verified the non-profit revocation status. Both letter and documentation is presented in Exhibit 13. ANALYSIS: Existing Land Comprehensive Plan The property requesting the SUP is within the Use/Infill Compatibility Analysis: future land use designation. Within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. The proposed Chi Alpha House as a fraternity/sorority house is consistent with the comprehensive plan designation. The proposed use will be compatible with the surrounding neighborhood. The applicant is not proposing to change the density or change the exterior façade of the house. The applicant will provide the required off-street parking as required by Code. No new driveway or off- street parking spaces are proposed with the SUP. Development A Semi-public, Halls, Clubs, and Lodges use is a permitted use Code/Zoning Analysis within the NR-3 zoning district with the approval of an SUP. DEPARTMENT AND The Development Review Committee has reviewed the request for an AGENCY REVIEW: SUP. The following comments were provided to the applicant in a report. The items listed below will need to be addressed by the applicant and inspected by the City of Denton’s Building Inspection prior to a Certificate of Occupancy being issued. Page - 5 Building Inspection: 1.Notes state that the sign on the chimney is a "lit" sign. Sec. 35.15.14.1 E of the Denton Development Code states that "Any ground sign over ten (10) feet in height and any wall sign over fifteen (15) feet in height shall maintain the following setbacks from any property used for a single family residence or property zoned for single family if the sign would be visible from such property." Non-illuminated 100 feet Internally Illuminated 200 feet Externally Illuminated 500 feet 2.It is suggested that the applicant contact the Texas Department of Licensing and Regulations at 800-803-9202 to determine handicap accessibility requirements for converting a structure from a single family residence to a fraternity house with lodging and meeting space. 3.Section 8. E. of the rental agreement states "The Garage will be converted into a ministry game room..." The information provided by the applicant also states that the structure is 2500 sq. ft. plus garage conversion. Our records do not indicate that any permits were obtained for a garage conversion at this address. 4.Per Sec 3406.1 of the 2003 International Building Code, the change in occupancy classification will require the structure to meet all new code requirements. This would include exit and emergency lighting, smoke detectors, etc. Electric: 1. Fraternity/Sorority Houses are classified as commercial customers. City of Denton Customer Service will start the process to change the electric rate from residential to small commercial. 2. The maximum electric usage at 1907 West Oak was 4,107- kilowatt hours in the September 2006 billing cycle. Based on the age of the house and the electric usage last summer, it is recommended that Chi Alpha House review the electric service to confirm that the service is adequate for the usage. The electric service may have to be upgraded to provide safe service with the current usage. Fire: The change of use and occupancy classification of this building will Page - 6 require that the building comply with the 2003 International Fire Code and City Ordinance Chapter 29-2 amending the 2003 International Fire Code. 1.The building will be required to be equipped with an automatic fire sprinkler system in accordance with Section 903.2.8 of City Ordinance Chapter 29-2. 2.Other sections of the Fire Code will apply with regards to exit doors, locks and latches, smoke detectors, fire alarm system, exit signs and emergency lighting. Engineering: Further development may require ROW dedication and utility extensions. FINDINGS: Pursuant to subsection 35.6.4.B. a specific use permit shall be issued only if all of the following conditions have been met: 1.That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; Granting the SUP would not be injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity. The applicant will provide all required buffering, screening, and setbacks to ensure compatibility with the neighborhood as prescribed in the Denton Development Code. 2.That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; Granting the SUP would not significantly impede the normal and orderly development of the surrounding vacant property. The applicant is not proposing to change the density or change the exterior façade of the house. 3.That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; The subject site is developed with a single-family residential dwelling unit. Adequate utilities, access roads, drainage and other necessary supporting facilities exist. If the SUP is granted, Denton Municipal Electric will start the process to change the Page - 7 electric rate from residential to small commercial. No changes to other utilities are anticipated with this SUP request. 4.The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; The residents will use the existing driveway for parking and no new driveway or off-street parking spaces are proposed with the SUP that would increase the amount of impervious area. 5.That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration; The subject site is developed with a single-family residential dwelling unit. No new construction is proposed as part of this SUP resulting in offensive odor, fumes, dust, noise and vibration is anticipated. 6.That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and The Chi Alpha House is proposing a lighted wall sign. Lighting of the wall sign shall comply with the development standards addressed in the Denton Development Code. 7.That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. The proposed site will meet all landscaping and tree preservation regulations under Subchapters 13 in the Denton Development Code. The applicant has agreed to provide a 6-foot wood fence and a minimum 10-foot landscape area within one tree every 30 linear feet to provide buffer and screening from adjacent residential uses. Page - 8 EXHIBIT 2 Location Map Page - 9 EXHIBIT 3 Existing Zoning Map Page - 10 EXHIBIT 4 Future Land Use Map Page - 11 EXHIBIT 5 Notification Information Ð«¾´·½ Ò±¬·º·½¿¬·±² Ü¿¬»æ éñèñðé iñØÖÜÑïÎÉÔÚØÊÊØÏÉÇÔÜúØËÉÔ×ÔØÙðÜÔÑïç iúÎÈËÉØÊÄïÎÉÔÚØÊÊØÏÉÇÔÜëØÖÈÑÜËðÜÔÑêê ïÈÐÛØËÎ×ËØÊÍÎÏÊØÊÉÎ iñØÖÜÑïÎÉÔÚØ ×² Ñ°°±·¬·±²æ ïî ×² Ú¿ª±®æ ð Ò»«¬®¿´æ ð Ð»®½»²¬ ±º ´¿²¼ ©·¬¸·² iÔÏÎÍÍÎÊÔÉÔÎÏéïòí û Page - 12 EXHIBIT 6 Site Photos View of the subject property. View of the home to the west of the subject property. View of the home to the east of the subject property. Page - 13 ÛÈØ×Þ×Ì é ÛÈØ×Þ×Ì è January 24, 2007 To whom it may concern: This letter is being sent to you as a clarification of the purpose and background of Chi Alpha nationally, as well as an answer to questions you have addressed concerning the local Chi Alpha chapter at the University of North Texas Campus. Chi Alpha is a well established fraternal organization on 250 campuses nationwide and 40 nations. Chi Alpha is the university student organization of the General Council of the Assemblies of God, Springfield, MO. The Assemblies of God has 12,298 churches in the United States with a membership of 1.6 million. Chi Alpha chapters must charter annually with the national office in Springfield, Missouri to be approved and in good standing. Every campus chapter must first be recommended by the Assemblies of God District (often synonymous with state level church authorities) to be approved and recognized nationally. Many of our chapters own buildings to house students and staff, provide offices, and meeting space for student activities. These facilities provide a service to our students and ultimately the university community. The campus at University of North Texas is a Co-ed Christian Fraternity. Our organization is not a part of Inter-Fraternity Council, because we have an additional set of religious standards that we hold. We have guidelines regarding alcohol and the conduct related to our events. Alcohol is not allowed at any of our events even if a student is of legal drinking age. We exist to encourage and develop students in Christian principles and practice in the university setting. We see ourselves as a service to the university community through student’s involvement in intramurals, studies on Christianity, social activities and service projects, and programs for international students. We do not have a pledge process to become members, but we do have guidelines for becoming an officer. The Chi Alpha fraternity functions as a Christian service organization. Chi Alpha has proven itself to be an upstanding organization and to be a benefit to the campus community as well as the community at large. Chi Alpha purposes to develop outstanding Christian citizens and leaders for the marketplace and Chi Alpha houses and centers are an integral part of this. Sincerely, Dennis Gaylor, National Director Chi Alpha Campus Ministries, USA DG:cv ÛÈØ×Þ×Ì ç ÛÈØ×Þ×Ì ïð úÇÃéÏÛÊÈøÊÛÅÌÇÊÙÔÛÉ×ØÙÍÌÓ×ÉÌÊÓÎÈÈÔÓÉ ØÍÙÇÏ×ÎÈÅÓÈÔÍÇÈÛÅÛÈ×ÊÏÛÊÑ æÓÉÓÈÅÅÅÉÏÛÊÈØÊÛÅÙÍÏÍÊÙÛÐÐ ÛÈØ×Þ×Ì ïï ÛÈØ×Þ×Ì ïî ÛÈØ×Þ×Ì ïí ÛÈØ×Þ×Ì ïì AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT A07-0005(Clear Creek Natural Heritage Area Annexation) Hold the first of two public hearings to consider, under the annexation procedures for areas exempted from the municipal annexation plan, the annexation and service plan for approximately 835 acres of land generally located west of the Elm Fork tributary of the Trinity River, east of Collins Road, and north of US 380, (Exhibit 1). BACKGROUND Applicant: City of Denton Denton, TX An annexation proceeding is being considered by the City of Denton for a portion of the Clear Creek Natural Heritage Area and Greenbelt Trail. The ownership of the property is the U.S. Army Corps of Engineers. The subject property is currently developed with a Nature Center and a Trail System. The proposed annexation is being initiated by the City of Denton. Annexation of the Clear Creek Natural Heritage Area site will be addressed in two phases. Phase one will consist of the western portion of the property in this annexation. This will bring the Nature Center and all areas currently being used for education activities into the city limits. Phase one is generally located west of the Elm Fork tributary of the Trinity River, east of Collins Road, and north of US 380, (Exhibit 1). Phase two will annex an area north of this annexation area up to Elm Bottom Circle Road. This portion is also subject to the Wildlife Management portion of the City of Denton’s lease with the US Army Corps of Engineers. The following items summarize the proposed annexation and important actions taken: On August 31, 2007, staff received direction from the City Council to pursue annexation proceedings for the subject property. The subject property 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 100 Year Floodplain and a Neighborhood Centers land use designation. The annexation is scheduled for completion on December 11, 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 property is not within a platted lot; any subdivision or reconfiguration of the subject property will be subject to the City’s subdivision regulations. Incorporation of this site into the City would not require additional properties. OPTIONS 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 A07-0005 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) 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. EXHIBITS 1.Location Map 2.Annexation Schedule Summary 3.Service Plan 4.Service Area Analysis Respectfully submitted: Brian Lockley, AICP Interim Director of Planning and Development Prepared by: ____________________________ Ron Menguita Planner III Û¨¸·¾·¬ ï NatureCenter LocationMap ? Feet 06001,2002,400 DANA EXHIBIT 2 ANNEXATION SUMMARY SCHEDULE A07-0005 – Clear Creek Natural Heritage Area Annexation st Notices to Intent to Annex (30 day prior to 1 PH) will be sent on August 31, 2007. 10/2/07 Tuesday, City Council conducts first public hearing. 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. 10/16/07 Tuesday,City Council conducts second public hearing. Public notice must be no less than 10 days and no more than 20 days before public hearing. 10/24/07 Wednesday, Planning and Zoning Commission public hearings –make a recommendation to City Council regarding the proposed annexation. 11/6/07 Tuesday, City Council by a four-fifths vote institutes annexation proceedings. 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. 11/11/07 Sunday,Ordinance published The ordinance cannot be acted upon until at least 30 days after publication. 12/11/07 Tuesday, City Council by a four-fifths vote takes final action. Second reading and adoption of the annexation ordinance. Council action must be more than 30 days after publication of ordinance and less than 90 days after council institutes st annexation proceedings (adopts ordinance on 1 reading). The second reading of the ordinance could be held any time between December 11, 2007 and February 4, 2008. 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 st Government Code requires that City Council institute annexation proceedings (1 Reading of the 20 days after the second City Council public hearing but less than 40 Ordinance) more than days from the first City Council public hearing. EXHIBIT 3 CITY OF DENTON SERVICE PLAN FOR A07-0005 – Clear Creek Natural Heritage Area Annexation I.AREA ANNEXED The annexation area is generally located west of Elm Fork of the Trinity River, east of Collins Road, and north of US 380. 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. Animal control services will also be provided to the property upon the effective date of the annexation. B.Fire Protection Fire protection (within the limits of existing hydrants) and emergency medical services will be provided to the property upon the effective date of the annexation. The estimated emergency response time in this area is 10 minutesStation #42110 E. Sherman Dr. from , located at 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 The closest Denton Parks properties to the proposed annexation area are Avondale Park 2.5 miles to southwest, Water Works Park and Natatorium Pool complex 2.85 miles to west, and the Greenbelt Trail 1.1 mile to the east and north. 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 due to existing open space land at Clear Creek Nature Center and the Greenbelt trail. Code enforcement will also be provided to the property upon the effective date of the annexation. 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 regulations. City Council adopted The Denton Plan, the city’s 1999-2020 comprehensive plan, by Ordinance 99-439 on December 7, 1999. The Future Land Use Plan addresses both land in the city and its ETJ, and the subject tract is within the 100 Year Floodplain 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 the properties are annexed. 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 a request/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 the 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/Wastewater Facilities There are no 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 projected 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 ½) years after the effective date of the annexation. The City shall consider construction of other public improvements as the needs dictate on the same basis as such public improvements are considered throughout the City for areas having similar characteristics of topography, land use, and population density. 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 SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation The Planning and Development Department has received a request for annexation of approximately 835 acre generally located west of Elm Fork of the Trinity River, east of Collins Road, and north of US 380. Size: 835 acre Location: West of Elm Fork of the Trinity River, east of Collins Road, and north of US 380 Proposed use: Parks and Open Space Proposed zoning: Unknown 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 bordered by Collins Road to the west and US 380 to the south. The Mobility Plan designates portions Collins Road as a Collector Road and US 380 as a Primary Major Arterial. Future Land Uses. The proposed annexation area is within the 100 Year Floodplain and Neighborhood Centers land use designations. Existing land uses: The subject property is currently developed with a Nature Center and Trail System. Prominent natural features: The Environmentally Sensitive Areas (ESA) map shows that this property contains ESA – Undeveloped Floodplain, Upland Habitat and Riparian Buffers. The majority of the property is within the 100-year floodplain. Proximity to other service providers: This property is along the northeastern border of the City of Denton. Based on the current data, there is no sewer line or water line in close proximity to the subject property. 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 September 14, 2007 Planning and Development Department by , and call 349-8328 if there are any questions. SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Fire 1. Fire and Emergency Medical Services can be provided to the area from station(s) # 42210 E. Sherman Drive , located at . 10 minutes 2. Estimated response time. 5 minutes 3. Appropriate response time in the City. NO. 4. Is a new fire station approved in the CIP that could serve this area? If yes, what is the CIP program year? _____ NO. 5. Will a new fire station be requested in upcoming CIP proposals to serve this area? If yes, when should this station be operational? _____ 6. Total estimated funding for equipment, employees and/or facilities needed to serve this N/A. area strictly based on annexation and proposed development. 7. Please comment on the cumulative impact of annexation and development. N/A. At what population level would another fire station facility be required? Is there an accepted facility/equipment to population ratio that can be used for planning N/A. purposes? Is there an accepted fire fighter to population ratio that can be used for planning N/A. purposes? Additional Comments: Rick Jones, Fire Marshal September 18, 2007 _______________________________ _______________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Parks and Recreation 1. What neighborhood park and recreational facilities are currently serving this area or are None capable of serving this area if annexed and/or developed (federal, state, or local)? are within the proposed annexation. The closest Denton Parks properties to the proposed annexation area are Avondale Park 2.5 miles to southwest, Water Works Park and Natatorium Pool complex 2.85 miles to west, and the Greenbelt Trail 1.1 mile to the east and north. The Army Corp of Engineers open space property is bordered on the east of this annexation. 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 The 2000 Denton Park and Recreation Master Plan does not indicate a standards? need for a Community Park in the general area of the proposed annexation due to existing open space land at Clear Creek Nature Center and the Greenbelt trail. In the event new residential development occurs in the annexation area, a neighborhood park may be necessary. 2.5(to be dedicated at time of Neighborhood Parks: acres per 1,000 population development) . 5 acres minimum size. by the developer cost per acre. Recreation Center: _____square feet per 1,000 population. _____square feet minimum size. _____cost per square foot. Other facilities 3 Community Parks: per 1,000 population. 30 minimum size. _____ cost per square foot. 3. How much additional funding will be needed for maintenance if additional park facilities $172,700.00 are developed to serve this area? $3,454 cost per acre. _____ cost per square foot. 4. How many additional personnel would be needed to properly serve this area if annexed No additional personnel for Parks maintenance required at this and developed? time. However additional resources will be required for maintenance of the Clear Creek Natural Heritage Center as it develops. _____ 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 additional personnel per 1,000 population service) ; $40,000 per year cost per additional personnel Additional Comments: Bob Tickner, Superintendent of Park Planning and Development September 18, 2007 _______________________________ ___________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Police 1. Estimated average response time for this area based on current department conditions: 12 Priority minutes 25 Non-priority minutes 20 Average minutes 2. Appropriate average response time in the city based on current department conditions: 12 Priority minutes 25 Non-priority minutes 20 Average minutes 3. If annexed and developed as proposed will additional personnel be needed as a specific No. result of this proposal? If yes, how many? _____ What type? _____ None. 4. Will additional equipment and funding be needed to serve this area? If yes, what type? _____ 5. Will a police substation or other facility be needed to serve this area as a result of No. annexation and development? 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? _____ Is there an accepted facility/equipment to population ratio that can be used for planning No. purposes? Is there an accepted officer to population ratio that can be used for planning purposes? No. Additional Comments: As this will not be developed with residences, we do not expect our call load to be significantly impacted by this annexation. Scott Langford September 19, 2007 ________________________________ _____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Library 1. Estimated additional funding needed strictly based on proposed annexation and $0.00 development. Since the 2. Please comment on the cumulative impact of annexation and development. proposed use of the annexation area is for parks and open space, the annexation and development of this property will not have a negative impact on library services. 131,738 3. At what population level would another library facility be required? 4. Is there an accepted circulation to population ratio that can be used for planning Yes; 8.7 is the national 2006 annual circulation per capita average for purposes? 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 Yes; according to the Texas Public Library Standards it is 1 FTE per purposes? 1,000 population and 1 MLS (Master of Library Science) degreed librarian per 8,000 population. 6. If annexed, can anticipated service demands be met using existing materials, facilities, Yes. and personnel? 7. If not, how many additional employees and what type of facilities and materials will be N/A needed to provide services? Additional Comments: The annexation of this property will not impact the current level of library services. Eva Poole, Director of Libraries September 14, 2007 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Solid Waste Yes. 1. Is residential solid waste service available to the proposed area for annexation? Yes. 2. Is commercial solid waste service available to the proposed area for annexation? 3. What is the estimated cost to provide this area with solid waste service? Incremental cost only. Equipment and Maintenance. Incremental cost only. Personnel. 4. What is the typical revenue collected per: N/A Household. Based on service level. Commercial Business No. 5. Will additional equipment be needed to serve this area if annexed or developed? None Type of Equipment. N/A Cost of Equipment. No. 6. Will additional employees be needed to serve this area if annexed or developed? N/A Type of Employees. None Number of Employees. 7. Please comment on the cumulative impact of annexation and development. N/A At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning No. purposes? Is there an accepted employee to population ratio that can be used for planning No. purposes? Additional Comments: Scott Lebsack September 12, 2007 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Electric Utilities 1. What is the distance to, location of, and size of the nearest City of Denton electric line? 11,000 feet Overhead line 2. What type of lines and facilities would be required to serve this area? extension of 11,000 feet No. 3. Are any new lines or facilities proposed for construction to serve this area? Street lighting of 4. Are there any potential responsibilities if this area is annexed? public roads 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: Multiple electrical utilities are certified to provide electric service in this area. Electric service by DME will be per DME Electric Service Standards available at dmepower.com. Don McLaughlin September 13, 2007 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area Annexation Water/Wastewater 1. What is the nearest City of Denton water line? 12 Inch Size of water line. Lakeview Blvd. & Hwy 380 Location of water line. 4,750 feet Distance from proposed annexation. 2. What is the nearest City of Denton sewer line? Size of sewer line. _____ Location of sewer line. _____ Distance from proposed annexation. _____ 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location No lines planned for this area Water lines Sewer lines _____ _____ _____ No 4. Are there any City of Denton lines included in the proposed annexation? 5. Please comment on the cumulative impact of annexation and development 18,750. At what population level would additional equipment be required? Is there an accepted equipment to population ratio that can be used for planning one crew per 18,750 population. purposes? Is there an accepted employee to population ratio that can be used for planning one employee per 5,770 population. purposes? Additional Comments: The annexation is within USACOE 1135 project boundaries and mostly floodplain. No water service to this area was included in current city master planning efforts. As of this writing, Planning has not received a response from the Wastewater Department. As soon as information is received, it will be included in the Service Area Analysis. Tim Fisher September 21, 2007 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area 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 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 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 Most of the annexation property is within the comments concerning drainage). floodplains of the Elm Fork Trinity River and Clear Creek, and could not be developed according to the requirements of the current Denton Development Code. Drainage improvements: Existing flooding occurs on Collins Road, about 2,800-feet south of Hartlee Field Road where an unnamed tributary draining over 1,000-acres crosses the road at two locations. The two existing culvert crossings are ancient steel pipe arches; the ages of these structures are unknown. This extent of flooding across the narrow 2-lane road is a safety hazard to traffic. Culvert improvements are not currently planned at this location. The required improvements to bring the stream crossing into compliance with the Development Code would be significant. The area is flat and the roadway would have to be elevated above the flood level, and large box culverts or a bridge and some channelization would be required to contain the flow under the roadway. The cost for these improvements is expected to exceed $500,000. It may be necessary to install flood warning gates across Collins Road at this location, at a cost estimated to be $80,000 as an interim measure. 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 the Transportation Department. As soon as information is received, it will be included in the Service Area Analysis. Ed Witkowski September 10, 2007 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0005 – Clear Creek Natural Heritage Area 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: October 2, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT A07-0004 (Wild Mustang Crossing) Hold the first of two public hearings to consider the voluntary annexation and service plan for approximately 0.123 acres of land, contiguous and adjacent to the City of Denton generally located to the northeast of F.M. 2181/ Teasley Lane approximately 200 feet west of Old Alton Road in the The property is legally described southwestern portion of Denton's Extraterritorial Jurisdiction (ETJ). as a tract of land situated in the J Baker Survey, Abstract No. A0047A, Denton County, Texas. BACKGROUND Applicant: Wild Mustang Crossing, Ltd. Dallas, TX A voluntary annexation proceeding is being considered by the City of Denton for the Wild Mustang Crossing. The property is one of three parcels on this location owned by the applicant. This property is located to the immediate south of Guyer High School. The following items summarize the proposed annexation and important actions taken: The application for the annexation was received by staff on August 6, 2007. Letters to adjacent property owners also in the ETJ were mailed on August 24, 2007 to see if they would be interested in adding their property to the annexation request. Staff has received no response from the two adjacent property owners. On Friday, August 24, 2007, the City Council was informed (reading file) of the request for the voluntary annexation proceedings for approximately 0.123 acres of land legally described as a tract of land situated in the J Baker Survey, Abstract No. A0047A, Denton County, Texas. 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 an Exisitng Land Use designation. The annexation is scheduled for completion on December 11, 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. However, staff did contact adjacent properties east of the subject site to ascertain their interest in annexing to the City, and as of this writing staff has received no response from the property owners. OPTIONS 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 A07-0004 is held as scheduled. 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. EXHIBITS 1.Location Map 2.Annexation Summary Schedule 3.Service Plan 4.Service Area Analysis Respectfully submitted: Brian Lockley, AICP Interim Director of Planning and Development Prepared by: Lori Shelton, AICP Planner II EXHIBIT 1 Location Map EXHIBIT 2 Annexation Summary Schedule Wild Mustang Crossing, Ltd. Annexation st Notices to Intent to Annex (30 day prior to 1 PH) will be sent on August 31, 2007. 10/2/07 Tuesday, City Council conducts first public hearing. 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. 10/16/07 Tuesday,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,10/24/07 Planning and Zoning Commission public hearings –make a recommendation to City Council regarding the proposed annexation. 11/6/07 Tuesday, City Council by a four-fifths vote institutes annexation proceedings. 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. 11/11/07 Sunday,Ordinance published The ordinance cannot be acted upon until at least 30 days after publication. 12/11/07 Tuesday, City Council by a four-fifths vote takes final action. Second reading and adoption of the annexation ordinance. Council action must be more than 30 days after publication of ordinance and less than 90 days after council institutes st annexation proceedings (adopts ordinance on 1 reading). The second reading of the ordinance could be held any time between December 11, 2007 and February 4, 2008. 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 st Government Code requires that City Council institute annexation proceedings (1 Reading of the 20 days after the second City Council public hearing but less than 40 Ordinance) more than days from the first City Council public hearing. EXHIBIT 3 Service Plan CITY OF DENTON SERVICE PLAN FOR A07-0004 – Wild Mustang Crossing Annexation AREA ANNEXED The annexation area is located in the southern portion of Denton’s Extraterritorial Jurisdiction and contains approximately 0.123 acres of land generally located generally located northeast of the bend of F.M. 2181/ Teasley Lane, west of Old Alton Road to the immediate south of Guyer High School and legally described as Tracts 9 & 10 in the J. Baker Survey, A1403A. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021, 43.065, and 43.065(b)-(o) (Vernon 1999, as amended). Municipal facilities and services to the annexed area described above will be provided or made available on behalf of the City in accordance with the following plan. The City shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the city with similar topography, land use, and population density. AD VALOREM (PROPERTY OWNER) TAX SERVICES 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. 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, which is similar to responses for surrounding properties within the city limits. The City of Denton will provide emergency medical services (“EMS”). 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. 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. Residents of the proposed annexation area will be able to use existing City of Denton park and recreation facilities and programs. 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. 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. 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 regulations. City Council adopted The Denton Plan, the city’s 1999-2020 comprehensive plan, by Ordinance 99-439 on December 7, 1999. The Future Land Use Plan addresses both land in the city and its ETJ, and the subject 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 the properties are annexed. UTILITY (RATEPAYER) SERVICES Solid Waste Collection Each residential address will be provided a wheeled refuse cart, which will be serviced one time per week. Residents are required to place their refuse cart(s) at the curb prior to 7:00 a.m. on their collection day. Carts should be placed at the curb for collection no earlier than 6:00 p.m. the evening prior to their collection day. Carts are to be removed from the curb no later than 6:00 a.m. on the day following their collection day. All refuse placed in the cart for collection must be bagged to eliminate wind blown debris and littering. Refuse that is not placed in the cart with the lid closed will not be collected. Additional carts may be provided for an additional monthly charge. Weekly yard waste service is provided. Weekly bulky item collection service is provided. Weekly curbside recycling services are provided by Allied Waste Services. Contact Allied at 1-800-766-1758 to obtain curbside recycling information. Each residential customer’s refuse cart service, curbside recycling service, bulky item collection service, and yard waste service will occur the same day of each week. Please telephone Customer Service, 940-349-8787, to answer any remaining questions, and sign up for service. Commercial Refuse Service 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 type and volume 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 container with the lid closed will not be collected. Refuse placed outside the container is subject to code enforcement regulations, including potential fines. Commercial roll-off containers are available for construction materials. 20 and 30 cubic yard containers. Compactor service is available. Contact the City of Denton Customer Service Office, 940-349-8787, to obtain commercial container sizes, and rates. 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. Water/Wastewater Facilities There are no water facilities and no 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 projected in the area. 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. 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. Denton Municipal Electric is the current electric service provider for this site. 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. 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 ½) years after the effective date of the annexation.The City shall consider construction of other public improvements as the needs dictate on the same basis as such public improvements are considered throughout the City for areas having similar characteristics of topography, land use, and population density. UNIFORM LEVEL OF SERVICES MAY NOT BE REQUIRED Nothing in this plan shall require the City to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056 (Vernon Supp. 2000). EXHIBIT 4 Service Area Analysis A07-0004 – Wild Mustang Crossing The Planning and Development Department has received a request for voluntary annexation and service plan for approximately 0.123 acres of land, contiguous and adjacent to the City of Denton generally located to the northeast of F.M. 2181/ Teasley Lane approximately 200 feet west of Old Alton Road in the southwestern portion of Denton's Extraterritorial Jurisdiction (ETJ). Size: 0.123 acres Location: Northeast of F.M. 2181/Teasley Lane approximately 200 feet west of Old Alton Road Proposed use: Unknown Proposed zoning: Rural Development 5 (RD-5) 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 has no direct access to an arterial or collector road. It is expected that the property will develop in conjunction with two other adjacent parcels under the same ownership as the subject site. The other two parcels have direct access to a primary major arterial. Future Land Uses. The proposed annexation area is within the Existing Land Use designation. Existing land uses: The subject property currently has agricultural buildings on it. Prominent natural features: There are no prominent natural features on the site. Proximity to other service providers: Based on the current data, there are no sewer or water lines on the subject property. SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing FIRE 1.Fire and Emergency Medical Services can be provided to the area from station(s) 2.Estimated response time. _____ minutes 3.Appropriate response time in the City. minutes 4.Is a new fire station approved in the CIP that could serve this area? _____ If yes, what is the CIP program year? _____ 5.Will a new fire station be requested in upcoming CIP proposals to serve this area? _____ 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. _____ 7.Please comment on the cumulative impact of annexation and development. At what population level would another fire station facility be required? _____ Is there an accepted facility/equipment to population ratio that can be used for planning purposes? _____ Is there an accepted fire fighter to population ratio that can be used for planning purposes? _____ As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. _______________________________ _______________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing 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 Cross Timbers Park, 1.5 miles to the northwest. The DISD Guyer High School is adjacent to this site and offers some recreational opportunities to the general public. 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. 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 None are developed to serve this area? 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 None and developed? Service Standards: 0.5 to 0.7 FTE additional personnel per 1,000 population (depending on type of service) $38,000 per year cost per additional personnel Additional Comments: Bob Tickner, Superintendent of Park Planning and Development, 940-349-8275 Person to contact if there are questions Date: 9-18-07 SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing Police 1.Estimated average response time for this area based on current department conditions: 2.Appropriate average response time in the city based on current department conditions: 3.If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? ______ If yes, how many? ________ What type? ________ 4.Will additional equipment and funding be needed to serve this area? _____ 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? _____________ 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? _______________ Is there an accepted facility/equipment to population ratio that can be used for planning purposes? ___________________________________________________________ Is there an accepted officer to population ratio that can be used for planning purposes? As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. _______________________________ _____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing 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 the proposed annexation area contains approximately 0.123 acres of land, the annexation and development of Wild Mustang Crossing 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 average for the legal service area population served by the Denton Public Library (DPL). 5.Is there an accepted employee to population ratio that can be used for planning purposes? Yes; according to the Texas Public Library Standards it is 1 FTE per 1,000 population and 1 MLS (Master of Library Science) per 8,000 population. 6.If annexed, can anticipated service demands be met using existing materials, facilities, and personnel? Yes, with the planned expansion of South Branch. 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 annexation will not impact the current level of library services. Eva Poole, Director of Libraries September 14, 2007 Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing Solid Waste 1.Is residential solid waste service available to the proposed area for annexation? Yes 2.Is commercial solid waste service available to the proposed area for annexation? Yes 3.What is the estimated cost to provide this area with solid waste service? Equipment and Maintenance. Incremental Cost Personnel. Incremental Cost 4.What is the typical revenue collected per: Household. Three residential refuse cart sizes are available. Commercial Business Varies by container and service level. 5.Will additional equipment be needed to serve this area if annexed or developed? No Type of Equipment. NA Cost of Equipment. NA 6.Will additional employees be needed to serve this area if annexed or developed? No Type of Employees. NA 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: Please contact Customer Service, 940-349-8787, for residential refuse and commercial refuse collection rates. S. Lebsack, 940-349-8069 9/18/07 ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing 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 a single-phase primary line providing electric service to the water storage tank. 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 As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. _____________________________ _____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing Wastewater 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. _____ Location of sewer line. _____ Distance from proposed annexation. _____ 3.According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location Water lines _____ _____ _____ 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 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? _____ As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. _______________________________ ______________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004- Wild Mustang Crossing Water 1.What is the nearest City of Denton water line? a.Size of water line. _____ b.Location of water line. _____ c.Distance from proposed annexation. _____ 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. 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? c.Is there an accepted employee to population ratio that can be used for planning purposes? As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. ________________________________ _______________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing 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 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 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? _____. 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? _____ As of this writing, Planning has not received a response from this Additional Comments: department. As soon as information is received, it will be included in the Service Area Analysis. ________________________________ ____________ Person to contact if there are questions Date SERVICE AREA ANALYSIS A07-0004 – Wild Mustang Crossing 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? As of this writing, Planning has not received a response from Denton Additional Comments: 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: October 2, 2007 DEPARTMENT: Planning and Development ACM: Howard Martin, 349-8232 SUBJECT- Z07 -0022 (Unicorn Lake Overlay District Amendment) Hold a public hearing and consider the adoption of an ordinance regarding an amendment to Subchapter 35.7.11.3.D of the Denton Development Code (the Unicorn Lake Overlay District) regarding “Minimum House Size”. The Unicorn Lake Overlay District is generally located on an approximately 47 acres south of Wind River Boulevard and west of Unicorn Lake Boulevard. The property is located within a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district. The Planning and Zoning Commission recommends approval (4-0). BACKGROUND Applicant: City of Denton Denton, TX On May 16, 2006, the Denton City Council approved Ordinance No. 2006-139 which created an Overlay District to allow a single family gated community within the Unicorn Lake development (Tuscan Hills gated community). The Ordinance created Subchapter 35.7.11 of the Denton Development Code (DDC) which provides the development standards for the Overlay District. The requirements of the Overlay District include a minimum residential lot size of 5,000 square feet and a minimum house size of 2,500 square feet of air conditioned living space. The proposed amendment to the DDC would change Subchapter 35.7.11.3.D. to require the minimum house size to be 2,500 square feet under roof rather than 2,500 square feet of air conditioned space. The 2,500 square feet under roof requirement will not include covered patios or porches. Public notification information is included in Exhibit 4. As of this writing, no responses to the public notification letters have been received. OPTIONS 1.Recommend approval as submitted. 2.Recommend denial. 3.Postpone consideration. 4.Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of the Denton Development Code amendment (4-0). EXHIBITS 1. Staff Analysis 2. Location Map 3.Zoning Map 4.Notification Information 5.Sample Site Plan 6.Tuscan Hills Final Plat 7.Proposed Amendment to Subchapter 35.7.11.3 8.Ordinance Respectfully submitted: Brian Lockley, AICP Interim Director, Planning and Development Prepared by: Lori Shelton, AICP Planner II 2 EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS CASE NO.: DATE TO BE CONSIDERED: Z07-0022September 26, 2007 LOCATION: The subject property is located on the south side of I-35 East, south of Wind River Boulevard and west of Unicorn Lake Boulevard. APPLICANT: City of Denton 221 North Elm St. Denton, TX 76201 OWNER: Shelton Development LP 2701 Wind River Lane Denton, TX 76210 REQUEST: Amend Subchapter 35.7.11.3.D of the Denton Development Code, Minimum House Size. RECOMMENDATION: The Planning and Zoning Commission recommends approval of this code amendment (4-0). COMPREHENSIVE Existing Land Use PLAN DESIGNATION: SITE AND The property is located within a Neighborhood Residential Mixed SURROUNDINGS: Use 12 (NRMU-12) zoning district with an Overlay District to allow a gated community. The property is platted and the model home for the development is under construction. North: Regional Center Commercial Downtown (RCC-D); Partially developed retail/office development South: Neighborhood Residential 2 (NR-2); Developed as the Denton State School East: Neighborhood Residential 2 (NR-2); Developed as the Denton State School West: Neighborhood Residential 3 (NR-3) and Neighborhood Residential 4 (NR-4); Developed residential, Sundown Ranch subdivision. BACKGROUND On May 16, 2006, the Denton City Council approved Ordinance No. INFORMATION: 2006-139 which created an Overlay District within the Unicorn Lake development. The Ordinance created Subchapter 35.7.11 of Denton Development Code (DDC) which provides the development standards to allow a gated residential community of no more than 112 single family detached homes. The requirements of the Overlay District include a minimum residential lot size of 5,000 square feet 3 and a minimum house size of 2,500 square feet of air conditioned living space. The Unicorn Lake Overlay District was created to allow a gated residential community of small lots with high quality homes. The property was platted with an average residential lot size of 5,450 square feet. The project homebuilder, Kent Key Custom Homes, found that the minimum house size as defined in the DDC would preclude the development of one story homes to be built on the lots because a garage would not apply to the 2,500 square foot minimum. Using the requirement of the minimum house size of 2,500 square feet of air conditioned living space would effectively require a single story home to have a minimum of 2,980 square feet under roof to meet the code requirement for the minimum house size and provide a garage. This assumes a standard garage is about 480 square feet. Exhibit 5 is a sample site plan that demonstrates a single story home plan on a typical lot within the Overlay District. This sample site plan shows a 2,707 square foot home with a garage. This site plan would not meet the current minimum house size requirement unless the garage was turned into air conditioned living space. A garage could not be added to this site plan and meet all requirements for landscaped area (15% required), setbacks and easement restrictions on the lot. The inability to provide a garage would make the end product, a single story home with no garage, undesirable in the housing market. Two story homes easily meet the existing requirements since additional square footage is on the second floor. Since it was not the intention to preclude the development of single story homes from the Tuscan Hills development, staff is requesting an amendment to change the minimum house size requirement from 2,500 square feet of air conditioned living space to a minimum of 2,500 square feet under roof. The required 2,500 square feet under roof will not include covered patios or porches. FINDINGS: The criteria for approval of Zoning Amendments, per 35.3.4.B.2 of the Denton Development Code is: 1. The proposed rezoning conforms to the Future Land Use element of the Denton Plan, and The requested Development Code amendment conforms to the Future Land Use designation of the Denton Plan. 2. The proposed Development Code Amendment facilitates the adequate provision of transportation, water, sewers, schools, parks, other public requirements and public convenience. 4 This property is final platted and the proposed amendment does not affect the adequate access to adequate transportation, water, sewers, and other public requirements for the overlay district. 5 EXHIBIT 2 LOCATION MAP SUBJECT SITE 6 EXHIBIT 3 ZONING MAP SUBJECT SITE 7 EXHIBIT 4 NOTIFICATION INFORMATION Public Notification Date: September 16, 2007 * 200’ Legal Notices sent via Certified Mail: 35 Number of responses to 200’ Legal Notice: In Opposition: 0 In Favor: 0 Neutral: 0 * - A copy of the notification list is available at City Hall West, 221 N. Elm Street, Denton, TX 8 EXHIBIT 5 SAMPLE SITE PLAN 9 EXHIBIT 6 TUSCAN HILLS FINAL PLAT 10 This close up view of the Tuscan Hills final plat shows a sample of the typical lot size and configuration in the Tuscan Hills subdivision. The typical width is 50 feet with lot sizes ranging from 5,000 to 5,300 square feet not including corner lots. 11 EXHIBIT 7 AMENDED SUBCHAPTER 35.7.11.3 35.7.11.3 Development Standards The City rules and regulations applicable to the development of property located within an NRMU-12 zoning district are applicable to the Unicorn Lake Overlay District with the following exceptions: ßòÐ®·ª¿¬» Í¬®»»¬ ¿²¼ Ë¬·´·¬·»ò ïòß °®·ª¿¬» ¬®»»¬ §¬»³ ©·¬¸ ¹¿¬»¼ ¿½½» ³¿§ ¾» ½±²¬®«½¬»¼ ¬± »®ª» ¬¸» Ð®±°»®¬§ò Ý´«¾¸±«» Ü®·ª» ¸¿´´ ¾» ¿ °«¾´·½ ¬®»»¬ò Ð®·±® ¬± ¬¸» ®»½±®¼¿¬·±² ±º ¿²§ º·²¿´ °´¿¬ ¿´´±©·²¹ ¬¸» ½±²¬®«½¬·±² ±º «½¸ ¿ °®·ª¿¬» ¬®»»¬ §¬»³ô ¼»»¼ ®»¬®·½¬·±² º±® ¬¸» Ð®±°»®¬§ ³«¬ ¾» ®»½±®¼»¼ ·² ¬¸» ¼»»¼ ®»½±®¼ ±º Ü»²¬±² Ý±«²¬§ ½±²¬¿·²·²¹ °®±ª··±² ·² «¾¬¿²¬·¿´´§ ¬¸» ¿³» º±®³ ¿ ¬¸» º±´´±©·²¹ °®±ª··±² ±º Û¨¸·¾·¬ Ý ¿¬¬¿½¸»¼ ¸»®»¬± ¿²¼ ³¿¼» ¿ °¿®¬ ¸»®»±º ¾§ ®»º»®»²½»æ ø¿÷ ß®¬·½´» ×× ø¿²¼ ®»´¿¬»¼ ¼»º·²·¬·±²¿´ °®±ª··±²÷å ø¾÷ Í»½¬·±² ìòïðå ø½÷ ¬¸» °®±ª··±² ±º Í»½¬·±² êòðî ®»¯«·®·²¹ ¬¸¿¬ ´·¿¾·´·¬§ ·²«®¿²½» ¾» ±¾¬¿·²»¼ ·² ¿² ¿³±«²¬ ¿°°®±ª»¼ ¾§ ¬¸» Ý·¬§ô ¿²¼ ²¿³·²¹ ¬¸» Ý·¬§ ¿ ¿² ¿¼¼·¬·±²¿´ ·²«®»¼å ø¼÷ ¬¸» °®±ª··±² ±º Í»½¬·±² ïðòðí °®»½´«¼·²¹ ¿³»²¼³»²¬ ø©·¬¸±«¬ Ý·¬§ ½±²»²¬÷ ±º ¿²§ ±º ¬¸» °®±ª··±² ©¸·½¸ °»½·º·½¿´´§ ®»¯«·®» Ý·¬§ ½±²»²¬ ¬± ¿² ¿³»²¼³»²¬å ¿²¼ ø»÷ Í»½¬·±² ïðòïîò îòÛ¨½»°¬ ¿ ±¬¸»®©·» °®±ª·¼»¼ ¾§ ¬¸· ±®¼·²¿²½»ô °®·ª¿¬» ¬®»»¬ ¿²¼ ·¼»©¿´µ ³«¬ ¾» ¼»·¹²»¼ ¿²¼ ½±²¬®«½¬»¼ ¿½½±®¼·²¹ ¬± °«¾´·½ ¬®»»¬ ¬¿²¼¿®¼ò íòÜ·½±²¬·²«·¬§ ©·¬¸ ±¬¸»® »¨·¬·²¹ ±® º«¬«®» ²»·¹¸¾±®¸±±¼ · «²¿ª±·¼¿¾´» ¼«» ¬± ¿¼¶¿½»²¬ ½±²¼·¬·±² ¿²¼ ½±²¬®¿·²¬ ·²½´«¼·²¹ ¿÷ ¿² »¨·¬·²¹ «¾¼·ª··±² ¬± ¬¸» ©»¬ ±º ¬¸» Ð®±°»®¬§ ¬¸¿¬ ¼±» ²±¬ ¸¿ª» ¬®»»¬ ¬«¾ ¬± ½±²²»½¬ ¬±ô ¾÷ º´±±¼ °´¿·² ¿²¼ ´¿µ» ¿®»¿ ¬± ¬¸» »¿¬ ±º ¬¸» Ð®±°»®¬§ô ©¸·½¸ °®»»²¬ ¿ ·¹²·º·½¿²¬ °¸§·½¿´ ¾¿®®·»®ô ¿²¼ ½÷ Í¬¿¬» Í½¸±±´ °®±°»®¬§ ¬± ¬¸» ±«¬¸ ±º ¬¸» Ð®±°»®¬§ ¬¸¿¬ ¼±» ²±¬ô ¿²¼ ´·µ»´§ ©·´´ ²»ª»®ô °®±ª·¼» ¬®»»¬ ½±²²»½¬·±² °±·²¬ ¬± ¬¸» Ð®±°»®¬§ò Ì¸» °®±°±»¼ ·²¹®» ¿²¼ »¹®» º±® ¬¸» Ð®±°»®¬§ ½±²·¬ ±º ¬©± ¬®»»¬ ¼·®»½¬´§ ½±²²»½¬·²¹ ¬± ¿ ½±´´»½¬±® ®±¿¼©¿§ øÝ´«¾¸±«» Ü®·ª»÷ô ©¸·½¸ °®±ª·¼» ¿¼»¯«¿¬» ·²¹®» ¿²¼ »¹®» º±® ¿ ¼»ª»´±°³»²¬ ±º ïðê ·²¹´»óº¿³·´§ ´±¬ò É¸»² ¼»ª»´±°»¼ º±® ·²¹´»óº¿³·´§ «»ô ¬¸» Ð®±°»®¬§ ©·´´ ¸¿ª» º»©»® «²·¬ ¬¸¿² ¿´´±©»¼ «²¼»® ¬¸» °®·±® ¦±²·²¹ô ¬¸« ³·¬·¹¿¬·²¹ ¿²§ ½±²½»®² ®»¹¿®¼·²¹ ¬¸» ²«³¾»® ±º ·²¹®» ¿²¼ »¹®» °±·²¬ ¿±½·¿¬»¼ ©·¬¸ ¬¸» Ð®±°»®¬§ò ×º ¬¸» Ð®±°»®¬§ · ¼»ª»´±°»¼ ©·¬¸ ¿²§ «» ±¬¸»® ¬¸¿² ¼»¬¿½¸»¼ ·²¹´»óº¿³·´§ «»ô ¬¸» ¿¼»¯«¿½§ º·²¼·²¹ ±º ¬¸· °¿®¿¹®¿°¸ ¸¿´´ ²±¬ ¿°°´§ò ìòÒ±¬©·¬¸¬¿²¼·²¹ ¿²§ ±¬¸»® °®±ª··±² ¬± ¬¸» ½±²¬®¿®§ ·² ¬¸» Ü»²¬±² Ü»ª»´±°³»²¬ Ý±¼» ±® Ý·¬§ ±º Ü»²¬±² ½®·¬»®·¿ ³¿²«¿´ô ¬¸» º±´´±©·²¹ ®»¯«·®»³»²¬ ¿°°´§ ¬± °®·ª¿¬» ¬®»»¬æ ¿òÌ¸» ³¿¨·³«³ ¬®»»¬ ¹®¿¼» º±® Ý´«¾¸±«» Ü®·ª» ¸¿´´ ¾» »·¹¸¬ °»®½»²¬ øèû÷ò ¾òÌ¸» ³¿¨·³«³ ¬®»»¬ ¹®¿¼» ©·¬¸·² ·¨¬§ º»»¬ øêðù÷ ±º ¿² ·²¬»®»½¬·±² ¸¿´´ ¾» »·¹¸¬ °»®½»²¬ øèû÷ò ½òÒ± ¬®¿ºº·½ ½¿´³·²¹ º»¿¬«®» ¿®» ®»¯«·®»¼ò ¼òÝ«´ó¼»ó¿½ ³¿§ ¾» ¿ ³¿¨·³«³ ±º ¬¸®»» ¸«²¼®»¼ º»»¬ øíððù÷ ·² ´»²¹¬¸ò Ý«´ó¼»ó¿½ ³«¬ ¸¿ª» ¿ ³·²·³«³ ®¿¼·« ±º º·º¬§ º»»¬ øëðù÷ò »òÞ¿®®·»® º®»» ®¿³° ¿®» ®»¯«·®»¼ ±²´§ ¿¬ ·²¬»®»½¬·±² ½«®¾ ®»¬«®²ò ºò×² ¬¸» »ª»²¬ ¿²§ ±º ¬¸» ¬®¿²°±®¬¿¬·±² °®±ª··±² ¿¾±ª» º¿´´ ¾»´±© ¿²§ ¿°°´·½¿¾´» Ý·¬§ ¬¿²¼¿®¼ô ¬¸» ³·²·³«³ ¬¿²¼¿®¼ »¬ ¾§ ßÍØÌÑ ¸¿´´ ¿°°´§ò Ú±® °«®°±» ±º ¿°°´§·²¹ ßÍØÌÑ ¬¿²¼¿®¼ô Ý´«¾¸±«» Ü®·ª» ¸¿´´ ¾» ½±²·¼»®»¼ ¿² «®¾¿² ½±´´»½¬±®ò ¹òß´´ °®·ª¿¬» ¬®»»¬ ¸¿´´ ¸¿ª» ¿ ¬±¬¿´ ³·²·³«³ ®·¹¸¬ó±ºó©¿§ ±º º·º¬§ º»»¬ øëðù÷ò ëòß´´ ©¿¬»® ¿²¼ »©»® ´·²» ¬¸¿¬ »®ª» ¬¸» Ð®±°»®¬§ ¸¿´´ ¾» °«¾´·½´§ ±©²»¼ ¿²¼ ³¿·²¬¿·²»¼ò êòß´´ ©¿¬»® ¿²¼ »©»® ´·²» ¸¿´´ ¾» ¼»·¹²»¼ ¿²¼ ¾«·´¬ ¿½½±®¼·²¹ ¬± Ý·¬§ ¬¿²¼¿®¼ò éòß Ð«¾´·½ Ë¬·´·¬§ Û¿»³»²¬ ±® ±¬¸»® ¿¼»¯«¿¬» ©¿¬»® ¿²¼ »©»® »¿»³»²¬ ¸¿´´ ¾» ¼»¼·½¿¬»¼ ¬± ¬¸» Ý·¬§ ±º Ü»²¬±² º±® ¿´´ ©¿¬»® ¿²¼ »©»® ´·²»ò 12 èòË¬·´·¬·» ³¿§ ¾» ´±½¿¬»¼ ©·¬¸·² ¿ °«¾´·½ «¬·´·¬§ »¿»³»²¬ ±® ±¬¸»® ¿¼»¯«¿¬» ©¿¬»® ¿²¼ »©»® »¿»³»²¬ ¼»¼·½¿¬»¼ ¬± ¬¸» Ý·¬§ ±º Ü»²¬±² ¿ ¸±©² ±² Û¨¸·¾·¬ Ü ¿¬¬¿½¸»¼ ¸»®»¬± ¿²¼ ³¿¼» ¿ °¿®¬ ¸»®»±º ¾§ ®»º»®»²½»ò Ì¸» Ý·¬§ · ²±¬ ®»°±²·¾´» º±® ®»°¿·®·²¹ ¼¿³¿¹» ¬± °®·ª¿¬» ¬®»»¬ ®»«´¬·²¹ º®±³ Ý·¬§ ®»°¿·® ¬± «¬·´·¬·» ´±½¿¬»¼ «²¼»®²»¿¬¸ ¬¸» ¬®»»¬ °¿ª·²¹ò Ø±©»ª»®ô ·º ¬¸» Ý·¬§ ³¿µ» «½¸ ®»°¿·®ô ¬¸» Ý·¬§ ¸¿´´ º·®¬ ¹·ª» ¬¸» Ø±³» Ñ©²»® ß±½·¿¬·±² ¬¸» ±°¬·±² ±º °¿§·²¹ ¬± «°¹®¿¼» ¬¸» ®»°¿·® ©±®µ ± ¬¸¿¬ ¬¸» ¬®»»¬ ¿®» ®»°¿·®»¼ ¬± Ý·¬§ ¬¿²¼¿®¼ò Þò Ð»®³·¬¬»¼ Ë»ò Ì¸» º±´´±©·²¹ «» ¿®» °»®³·¬¬»¼æ ø×÷ ¿ ³¿¨·³«³ ±º ïïî ·²¹´» º¿³·´§ ¼©»´´·²¹ «²·¬ô ¿²¼ ¿²§ ¿½½»±®§ «» ¬¸»®»¬± ·²½´«¼·²¹ ¿² ¿³»²·¬§ ½»²¬»®å øî÷ ¹¿ ©»´´ô ·²½´«¼·²¹ ¼®·´´·²¹ ±°»®¿¬·±² ¿²¼ «» ¿½½»±®§ ¬± ¹¿ ©»´´å ¿²¼ øí÷ ±ºº·½» ²±¬ ¬± »¨½»»¼ ¿ ¬±¬¿´ ±º èôððð ¯«¿®» º»»¬ô ¿²¼ ¿²§ ¿½½»±®§ «» ¬¸»®»¬±ò Ð»®³·¬¬»¼ «» ¿®» ®»¬®·½¬»¼ ¬± ¬¸» ¿®»¿ ¸±©² ±² Û¨¸·¾·¬ Þò Ýò Ó·²·³«³ Ô±¬ Í·¦»ò Ì¸» ³·²·³«³ ´±¬ ·¦» ¸¿´´ ¾» ëôððð ¯«¿®» º»»¬ º±® ·²¹´»óº¿³·´§ «»ò Ì¸» ³·²·³«³ ®»·¼»²¬·¿´ ´±¬ ·¦» ®»¯«·®»³»²¬ ·² Í»½¬·±² íëòïîòê ¼± ²±¬ ¿°°´§ò Üò Ó·²·³«³ Ø±«» Í·¦»ò ß´´ ·²¹´»óº¿³·´§ ¸±³» ³«¬ ½±²¬¿·² ¿ ³·²·³«³ ±º îôëðð ¯«¿®» º»»¬ ±º ¿·® ½±²¼·¬·±²»¼ ´·ª·²¹ °¿½» «²¼»® ®±±ºô »¨½´«¼·²¹ ½±ª»® °¿¬·± ¿²¼ °±®½¸»ò Ûò Ó·²·³«³ Ç¿®¼ ß¾«¬¬·²¹ ¿ Í·²¹´»óÚ¿³·´ª Ë» ±® Ü·¬®·½¬ò Ì¸» ³·²·³«³ §¿®¼ ©¸»² ¿¾«¬¬·²¹ ¿ ·²¹´»ó º¿³·´§ «» ±® ¼·¬®·½¬ ¸¿´´ ¾» ¬»² º»»¬ øïðù÷ °´« ±²» º±±¬ ø×ù÷ º±® »¿½¸ º±±¬ ±º ¾«·´¼·²¹ ¸»·¹¸¬ ¿¾±ª» ¬©»²¬§ º»»¬ øîðù÷ò Úò Ó·²·³«³ Í·¼» Ç¿®¼ò Ì¸» ³·²·³«³ ·¼» §¿®¼ º±® ·²¹´» º¿³·´§ «» ¸¿´´ ¾» º·ª» º»»¬ øëù÷ò Ùò Ó¿¨·³«³ Ô±¬ Ý±ª»®¿¹»ò Ì¸»®» · ²± ³¿¨·³«³ ´±¬ ½±ª»®¿¹» ®»¯«·®»³»²¬ º±® ·²¹´» º¿³·´§ «»ò Øò Ó·²·³«³ Ô¿²¼½¿°» ß®»¿ º±® Í·²¹´»óÚ¿³·´§ Ë»ò Ì¸» ³·²·³«³ ´¿²¼½¿°»¼ ¿®»¿ ±² ¿ ·²¹´»óº¿³·´§ ´±¬ ¸¿´´ ¾» º·º¬»»² °»®½»²¬ øïëû÷ò ×ò Ð»¼»¬®·¿² ß½½»ò Í»½¬·±² íëòïíòïðòßòî ¼±» ²±¬ ¿°°´§ò Öò Ü»·¹² Í¬¿²¼¿®¼ º±® Í·²¹´»óÚ¿³·´§ Ë»ò ×² ´·»« ±º ½±³°´§·²¹ ©·¬¸ Í»½¬·±² íëòïíòïíòïô ¿´´ ®»·¼»²¬·¿´ ¾«·´¼·²¹ ¸¿´´ ½±³°´§ ©·¬¸ ¬¸» º±´´±©·²¹ ¬¿²¼¿®¼æ ïòÛ¿½¸ ·²¹´» º¿³·´§ ¼©»´´·²¹ ¸¿´´ ¾» ½±²¬®«½¬»¼ «¬·´·¦·²¹ ¿¬ ´»¿¬ ¬¸®»» ±º ¬¸» º±´´±©·²¹ ¼»·¹² º»¿¬«®»æ ¿òÜ±®³»®ò ¾òÙ¿¾´»ò ½òÎ»½»»¼ »²¬®·»ô ¿ ³·²·³«³ ±º ¬¸®»» º»»¬ øíù÷ ¼»»°ò ¼òÝ±ª»®»¼ º®±²¬ °±®½¸»ò »òÝ«°±´¿ò ºòß®½¸·¬»½¬«®¿´ °·´´¿® ±® °±¬ò ¹òÞ¿§ ©·²¼±©ô ¿ ³·²·³«³ îìþ °®±¶»½¬·±²ò ¸òÝ´¿§ ¬·´»ô ´¿¬»ô ½±°°»®ô ±® ¸·¹¸ ¼»º·²·¬·±² ½±³°±·¬·±² ®±±º·²¹ ³¿¬»®·¿´ò ·òÚ·®»°´¿½» ½¸·³²»§ ³¿¬½¸·²¹ »¨¬»®·±® º·²·¸ ±º ¸±³»ò ¶òÉ·²¼±© ¿²¼ ¼±±® ³¿¼» ±º ©±±¼ô ³»¬¿´ ½´¿¼ ±® ³»¬¿´ ©·¬¸ ¾®±²¦» ¿²±¼·¦»¼ º·²·¸ò µòÜ»½±®¿¬·ª» ©®±«¹¸¬ ·®±² ±® ©±±¼ ®¿·´·²¹ ¿ »¨¬»²·±² ±º ¬¸» ¿®½¸·¬»½¬«®» ±º ¬¸» ¸±³»ò ´òÌ®·³ ¿²¼ ¿½½»²¬ ½±´±® ¬¸¿¬ ¿®» ¼¿®µô ®·½¸ »¿®¬¸ ¬±²» ¬¸¿¬ ½±³» º®±³ ¬¿·² ¿²¼ ®»º·²»¼ ©±±¼ô ³»¼·«³ ¾®±©²ô ±® ³»¼·«³ ¬± ¼¿®µ ¹®»»²ò ³òìæïî ¬± ïîæïî ·²¹´» °·¬½¸ ®±±º ±® ¼±«¾´» °·¬½¸ ®±±º «° ¬± ïîæïîô ©·¬¸ ¸»¼ ®±±º «»¼ ±²´§ ¿ »½±²¼¿®§ »´»³»²¬ò ²òÓ·²·³«³ ¬»² º±±¬ øïðù÷ º·®¬ º´±±® ©¿´´ ¸»·¹¸¬ ¿²¼ ³·²·³«³ ²·²» º±±¬ øçù÷ »½±²¼ º´±±® ©¿´´ ¸»·¹¸¬ò îòÒ± ¹¿®¿¹» ¼±±® ¸¿´´ ±½½«°§ ³±®» ¬¸¿² ìðû ±º ¬¸» ¬±¬¿´ ¾«·´¼·²¹ º®±²¬¿¹»ô «²´» ¬¸» ¹¿®¿¹» ¼±±® · ±² ¿ º®±²¬ º¿½·²¹ ¹¿®¿¹» ´±½¿¬»¼ ¿¬ ´»¿¬ íð º»»¬ ¾»¸·²¼ ¬¸» º®±²¬ ±º ¬¸» ¸±«»ò Ì¸· ®»¯«·®»³»²¬ ¼±» ²±¬ ¿°°´§ ¬± ¹¿®¿¹» º¿½·²¹ ¿² ¿´´»§ ±® ½±«®¬§¿®¼ »²¬®¿²½»ò íòÒ± ¹¿®¿¹» ³¿§ »¨¬»²¼ ¾»§±²¼ ¬¸» º®±²¬ ±º ¬¸» ¸±«»ô »¨½»°¬ ·¼» ´±¿¼ ±® Öó©·²¹ ¹¿®¿¹»ò 13 ìòÒ± »´»ª¿¬·±² ³¿§ ¾» ®»°»¿¬»¼ ³±®» º®»¯«»²¬´§ ¬¸¿² »ª»®§ º·º¬¸ ´±¬ ±² ¬¸» ¿³» ·¼» ±º ¬¸» ¬®»»¬ò Ò± »´»ª¿¬·±² ³¿§ ¾» ®»°»¿¬»¼ ±² ¬¸» ´±¬ ¼·®»½¬´§ ¿½®± ¬¸» ¬®»»¬ ±® ²»¨¬ ¼±±® ¬± ¬¸» ´±¬ ¼·®»½¬´§ ¿½®± ¬¸» ¬®»»¬ò ëòÐ®·³¿®§ »²¬®¿²½» ¸¿´´ º¿½» ¬¸» °®·ª¿¬» ¬®»»¬ ¿²¼ ·¼»©¿´µò êòÉ·²¼±© ¸¿´´ ¾» °®±ª·¼»¼ ©·¬¸ ¬®·³ ±® ¸¿´´ ¾» ®»½»»¼ò É·²¼±© ¸¿´´ ²±¬ ¾» º´«¸ ©·¬¸ »¨¬»®·±® ©¿´´ ¬®»¿¬³»²¬ò éòÛ¨¬»®·±® º·²·¸» ¸¿´´ ½±²·¬ ±º ±²» ±º ¬¸» º±´´±©·²¹ ³¿¬»®·¿´ô ±® ¿²§ ½±³¾·²¿¬·±² ¬¸»®»±ºæ ´±½¿´ ¬±²»ô ¾®·½µô °´¿¬»® ©·¬¸ ¬±²»ô ±® ©±±¼ò Ò± ³±®» ¬¸¿² ¬¸®»» ³¿¬»®·¿´ ¸¿´´ ¾» «»¼ º±® ¬¸» »¨¬»®·±® º·²·¸ ±º ¿ ·²¹´» ¼©»´´·²¹ «²·¬ò Õò Ð¿®µ·²¹ Þ»¸·²¼ Þ«·´¼·²¹ò Í»½¬·±² íëòïíòïíòíòßòè ¼±» ²±¬ ¿°°´§ò Ôò Ì®»» Ð®»»®ª¿¬·±²ò Ì¸» ¬®»» °®»»®ª¿¬·±² ®»¯«·®»³»²¬ ·² Í»½¬·±² íëòïíòé ¼± ²±¬ ¿°°´§ò Óò Þ«ºº»®ò ß ¾«ºº»® ¬¸¿¬ · ¿ ³·²·³«³ ±º º·º¬§ º»»¬ ·² ©·¼¬¸ô ·² ¬¸» ´±½¿¬·±² ¸±©² ±² Û¨¸·¾·¬ Ûô ³«¬ ¾» °®±ª·¼»¼ò ß´¬»®¿¬·±² ¬± ¬¸» ®»¯«·®»¼ ¾«ºº»® ¿®»¿ ¿®» °®±¸·¾·¬»¼ »¨½»°¬ ¿ ²»½»¿®§ ¬± ¼± ¬¸» º±´´±©·²¹æ øï÷ ¿½½±³³±¼¿¬» ¼®¿·²¿¹» º´±© º®±³ ¿¼¶¿½»²¬ ¿²¼ «°¬®»¿³ °®±°»®¬§ ¿²¼ ³»»¬ ¿´´ ¿°°´·½¿¾´» Ý·¬§ ¼®¿·²¿¹» ®»¯«·®»³»²¬å øî÷ ½±²¬®«½¬ ¿ º»²½» ±® ©¿´´ ¿´±²¹ ¬¸» ¾±«²¼¿®§ ±º ¬¸» Ð®±°»®¬§å øí÷ ·²¬¿´´ ¿ ®»¬¿·²·²¹ ©¿´´ ¿´±²¹ ¬¸» »¿¬ ´·²» ±º ¬¸» ¾«ºº»®ô ·º ²»½»¿®§å ¿²¼ øì÷ ®»³±ª» ¼¿²¹»®±«ô ¼·»¿»¼ô ±® ¼»¿¼ ¬®»» º®±³ ¬¸» ¾«ºº»®ò Ì¸» ±²´§ ³¿½¸·²»®§ ¬¸¿¬ ³¿§ ¾» «»¼ ·² ¬¸» ®»¯«·®»¼ ¾«ºº»® ¬± ¼± ¬¸» ©±®µ ¼»½®·¾»¼ ·² ¬¸» °®»½»¼·²¹ »²¬»²½» · ³¿½¸·²»®§ ¬¸¿¬ · ®»¿±²¿¾´§ ²»½»¿®§ ¿²¼ ¿°°®±°®·¿¬» ¬± ¬¸» ½±°» ±º ©±®µ ¾»·²¹ °»®º±®³»¼ò Òò Ý´«¾¸±«» Ü®·ª»ò Ò± ¿¼¼·¬·±²¿´ ´¿²» ¿®» ®»¯«·®»¼ ±² Ý´«¾¸±«» Ü®·ª» ¬± »®ª» ·²¹´» º¿³·´§ ¼»ª»´±°³»²¬ô ©¸»¬¸»® ¿² ¿¼¼·¬·±²¿´ ´¿²» · º±® ¬¸» °«®°±» ±º °®±ª·¼·²¹ ¿ ¬«®² ´¿²» ±® ¾« ´¿²» ±® º±® ¿²§ ±¬¸»® °«®°±»ò 14 EXHIBIT 8 ORDINANCE 15 16 AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development ACM: Howard Martin, 349-8232 SUBJECT Consider approval of a resolution by the City Council of the City of Denton, Texas, supporting the Community Development Block Grant Program and providing an effective date. BACKGROUND Various organizations including the U.S. Conference of Mayors and the National Community Development Association have been actively working to support continued funding of the CDBG program. CDBG provides flexible funding for a variety of eligible activities targeting low and moderate-income neighborhoods and households. If approved, the resolution will be forwarded to Congressman Burgess and Senators Hutchison and Cornyn. ESTIMATED PROJECT SCHEDULE N/A PRIOR ACTION/REVIEW (Councils, Boards, Commissions) Members of the Community Development Advisory Committee recommend approval of the resolution in support of the Community Development Block Grant Program. FISCAL INFORMATION Funding for the CDBG program for 2007-’08 is $897,709 this is a 28% drop in funding since the peak of $1,251,369 allocated to Denton for the 1995 program year. EXHIBITS 1. Resolution Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: Barbara Ross Community Development Administrator Û¨¸·¾·¬ ï Û¨¸·¾·¬ ï AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development ACM: Howard Martin, 349-8232 SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas, authorizing the Mayor, as representative of the City, to issue a letter designating the Denton Committee on People with Disabilities for the purposes of promoting aid to disabled persons in the City of Denton; and providing an effective date. BACKGROUND The Denton Committee on People with Disabilities has been meeting regularly during the past year. The Committee is requesting official recognition and confirmation of their status as the local organization designated to promote programs and seek funding sources to assist persons with disabilities in the Denton community. ESTIMATED PROJECT SCHEDULE The Committee’s work on behalf of persons with disabilities will be ongoing. PRIOR ACTION/REVIEW (Councils, Boards, Commissions) N/A FISCAL INFORMATION The Committee on People with Disabilities will seek funding from all available sources. EXHIBITS 1.Resolution Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: Barbara Ross Community Development Administrator Û¨¸·¾·¬ ï AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development Division ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving guidelines for operation of the City of Denton Home Improvement Program and eligibility criteria; authorizing expenditures in excess of $25,000 for projects meeting program guidelines and criteria; and providing for an effective date. BACKGROUND This ordinance approves guidelines and eligibility criteria for the 2007 Home Improvement Program. Passage of this ordinance authorizes project payments that exceed $25,000 when project meets program eligibility criteria and guidelines. City Council awarded CDBG and HOME grant funds to HIP for the 2007-08 program year as part of the City of Denton 2007 Action Plan for Housing and Community Development. Additional funding sources may include program income, a Denton County Housing Finance Corporation grant, a Federal Home Loan Bank grant, Section 108 Loan Guarantee funds, Denton ALERT funds, and owner-provided personal funds. All rehabilitation and reconstruction projects are competitively or reasonably bid and owners select contractors from eligible or reasonable bids received. The following changes to the 2007 Home Improvement Program guidelines are being recommended: 1.Participants must own and live in their home two or more years. This is a decrease from the three years previously required. 2.An underwriting policy for determining credit worthiness has been developed and included in the guidelines. 3.The HOME Agreement was revised as per HUD recommendation - Appendix 3. 4.Revision of the Target Area Map to include the Carpenter Rd. area and the Brandywine neighborhoods. No other significant changes are proposed. ESTIMATED SCHEDULE OF PROJECT The program guidelines will be in effect for owner-occupied rehabilitation and reconstruction projects completed from October 1, 2007 through September 30, 2008. PRIOR ACTION/REVIEW (Council, Boards, Commissions) City Council approved funding for the Home Improvement Program activity in the City of Denton 2007- 08 Action Plan for Housing and Community Development on May 15, 2007. FISCAL INFORMATION Housing staff salaries related to program delivery will be paid with CDBG and HOME funds. No general fund dollars are included to administer this program. EXHIBITS 1. Proposed Ordinance 2.Exhibit A: 2007 Home Improvement Program Guidelines Respectfully submitted: Emerson Vorel, Director Parks and Recreation Department Prepared by: Barbara Ross Community Development Administrator Û¨¸·¾·¬ ï AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development ACM: Howard Martin 349-8232 SUBJECT Consider approval of a resolution by the City Council of the City of Denton, Texas supporting the Home Investment Partnerships Program and providing an effective date. BACKGROUND Various organizations including the U.S. Conference of Mayors and the National Community Development Association have been actively working to support continued funding of the HOME program. HOME provides funding for various housing activities that support and improve low and moderate-income housing in communities. If approved, the resolution will be forwarded to Congressman Burgess and Senators Hutchison and Cornyn. ESTIMATED PROJECT SCHEDULE N/A PRIOR ACTION/REVIEW (Councils, Boards, Commissions) Members of the Community Development Advisory Committee recommend approval of the resolution in support of the HOME program. FISCAL INFORMATION Funding for the HOME program for 2007-’08 is $542,079; this is a 19% reduction in funding since the allocation peak of $672,160 allocated to Denton for the 2004 program year. EXHIBITS 1.Resolution Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: Barbara Ross Community Development Administrator Û¨¸·¾·¬ ï AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Community Development ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance providing for the sale of real property located at 816 Allen Street as a part of the City’s Infill New Construction Program for affordable housing for sale to low-moderate income buyers; and providing for an effective date. BACKGROUND In the 2003 and 2005 Action Plans for Housing and Community Development, City Council approved funding for an infill new construction housing program. Under the program, vacant lots that have been struck off to the City through the tax foreclosure process are acquired and used for construction of new single-family units. These units are made available for purchase by low or moderate-income households. The unit on Allen will be the sixth unit constructed using the City’s HOME program funding. Adoption of this ordinance will allow staff to take the necessary steps to sell the unit to an eligible household. ESTIMATED PROJECT SCHEDULE The unit should be completed by early November. Efforts to sell the unit will begin prior to the completion of construction. PRIOR ACTION/REVIEW (Councils, Boards, Commissions) Both the 2003 and 2005 Action Plans describing the program were approved by City Council. The bid for construction of the unit was approved by City Council on March 3, 2007. FISCAL INFORMATION Total cost of the project is $103,392. The sales price will be approximately $95,000. This will provide an immediate equity subsidy to the buyer. EXHIBITS 1. Ordinance Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: Barbara Ross Community Development Administrator Û¨¸·¾·¬ ï AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Utilities CM: Howard Martin, 349-8232 SUBJECT Consider approval of a resolution authorizing the city staff to develop an environmentally preferable purchasing policy regarding its public purchasing activities to the extent it is available, to the extent it is practicable, and to the extent reasonably permitted by the Texas state purchasing laws. BACKGROUND Environmentally Preferable Purchasing practices are currently being accomplished throughout the City departments at varying levels. Using products that have a lesser impact on human health and the environment isachoice that is made to benefit both our employees and the citizens of Denton. Highlights of Denton’s EPP accomplishments over the past year include: Approximately 25% of office supply purchases met EPP and/or recycled standards Fire Station 7 (materials purchases) Requiring Janitorial Supplies that meet mandatory “recycled” and “low voc” requirements Continued use of biodiesel Energy saving equipment performance contract at North Lakes has resulted in over 12 percent reduction in KWh usage. While many of these initiatives have developed over time at either the department or division level, it is important that the organization as a whole understand the principles and underlying goals of EPP. With this in mind, staff would like to present the attached Resolution. If approved, staff will develop an Environmentally Preferable Purchasing policy and the necessary education components necessary to assist staff in moving forward with appropriate purchases. Staff education will center around the recently released EPA Final Guidance on Environmentally Preferable Purchasing. The five guiding principles outlined in the document are as follows: Include environmental considerations as part of the normal purchasing process. Emphasize pollution prevention early in the purchasing process. Examine multiple environmental attributes throughout a product's life cycle. Compare environmental impacts when selecting products. Make purchasing decisions based on accurate and meaningful information about environmental performance of products and services. FISCAL INFORMATION For many office products, environmentally preferable options are available at no additional cost and some offer cost savings. When considering larger purchases such as sustainable building materials and practices, life cycle cost will be weighed against increased initial construction cost to determine payback and feasibility. PRIOR ACTION Presented to City Council Committee on the Environment March 6, 2007, Committee directed staff to forward Resolution to City Council for consideration. OPTIONS 1.No action 2.Adopt Resolution supporting the development of an Environmentally Preferable Purchasing Policy. RECOMMENDATION Staff recommends adoption of a Resolution supporting the development of a policy encouraging Environmentally Preferable Purchasing whenever practicable. EXHIBITS 1.Resolution 2.EPA’s Final Guidance on EPP Table of Contents Respectfully Submitted: Katherine Barnett Special Projects Coordinator Û¨¸·¾·¬ ï RESOLUTION NO. R2007-______ A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY STAFF TO DEVELOP AN ENVIRONMENTALLY PREFERABLE PURCHASING POLICY REGARDING ITS PUBLIC PURCHASING ACTIVITIES TO THE EXTENT IT IS AVAILABLE, TO THE EXTENT IT IS PRACTICABLE, AND TO EXTENT REASONABLY PERMITTED BY THE TEXAS STATE PURCHASING LAWS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, a municipal corporation and a Home-Rule City is committed to environmental quality; and WHEREAS, by incorporating environmental considerations into public purchasing, where legally possible, the City can reduce its burden on the local, regional and global environment; and WHEREAS, the City Council of the City of Denton wishes to conserve natural resources by purchasing both “recycled content materials” and “environmentally preferable materials,” where legally possible; and WHEREAS, the City of Denton wishes to reduce energy consumptions in facilities located within the City, by both energy-efficient new construction and by the retrofitting of existing facilities with the most energy-efficient materials practicable; and WHEREAS,all City departments will do their utmost to ensure that preference is given to environmentally preferable products to the extent that they are available, are practicable and are legally authorized; and WHEREAS,the continued implementation of the use of biodiesel fuel in the City of Denton fleet and the recovery of landfill gas in the biodiesel process are both an added benefit to air quality that Denton is already availing itself of; and WHEREAS,an environmentally preferable purchasing policy will be developed and the necessary tools shall be formulated and provided to assist staff in identifying environmentally preferable options to existing materials; and WHEREAS, this Resolution is in the public interest of the residents of the City of Denton; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby authorizes the development of an “Environmentally Preferable Purchasing Policy” for the future public purchasing needs of the City of Denton, to the extent that the same is available, is practicable, and is legally possible. SECTION 2. The City Council may, from time-to-time consider changes to this policy as will be reflected by their future action. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED on this the ______ day of _______________, 2007. ___________________________ PERRY R. McNEILL, MAYOR ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: ___________________________________ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: ___________________________________ Environmentally Preferable Purchasing -Table of ContentsPage 1of 2 Û¨¸·¾·¬ î Environmentally Preferable Purchasing Recent Additions | Contact Us | Print Version Search: EPA Home > Prevention, Pesticides & Toxic Substances > Pollution Prevention > Environmentally Preferable Purchasing > EPP Guidance > EPA's Final Guidance on Environmentally Preferable Purchasing > Table of Contents EPA's Final Guidance on Environmentally About EPP EPP Guidance Preferable Purchasing Product/Service Information The full text of EPA's Final Guidance on Federal Efforts The Five Guiding Principles Environmentally Preferable Purchasing, the EPP Tool Suite Federal Registrar document is available in PDF EPA's Final Guidance form (3.34MB). EPP Documents Standards Development EPP Links The full text of EPA's Final Guidance on Top 20 Priorities Environmentally Preferable Purchasing is available in PDF form (132 KB). Table of Contents I.Introduction II.Intended Audience of This Guidance III. Overall Approach for Implementing Executive Order 13101 IV.Guiding Principles V.Executive Agency Implementation VI.List of Resources A.EPP Web Site B.Federal Case Studies of Environmentally Preferable Purchasing C.Life Cycle-Based Resources D.Agency Environmental Catalogs E.Federal Trade Commission’s Guides on the Use of Environmental Marketing Claims F.Office of Federal Environmental Executive Website G.Other Resources and Tools VII. Appendices Appendix A : Glossary of Terms Appendix B: Environmental Attributes http://www.epa.gov/oppt/epp/pubs/guidance/finalguidancetoc.htm9/25/2007 Environmentally Preferable Purchasing -Table of ContentsPage 2of 2 1.Menu of Environmental Attributes 2.Definitions for Environmental Attributes Appendix C : Sample EPP Policy Directive Appendix D : Text of Policy Letter on Use of Non-Governmental Entities Issued By the Office of Federal Environmental Executive and U.S. Environmental Protection Agency, April 1998 Back to top Pollution Prevention Home | OPPT Home EPA Home | Privacy and Security Notice | Contact Us Last updated on Friday, June 9th, 2006 URL: http://www.epa.gov/oppt/epp/pubs/guidance/finalguidancetoc.htm http://www.epa.gov/oppt/epp/pubs/guidance/finalguidancetoc.htm9/25/2007 AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of the "City of Denton Certificates of Obligation ($7,065,000), Series 2007A"; authorizing the issuance of the certificates of obligation, approving and authorizing instruments and procedures relating to said certificates of obligation, and enacting other provisions relating to the subject. BACKGROUND During the recent budget development process, it was determined that additional funding is needed to construct various drainage improvements throughout Denton. To address these issues, the FY 2007-08 Proposed Budget includes a one cent tax increase (per $100 in valuation) to support the issuance of Certificates of Obligation. This ordinance authorizes the issuance, sale and delivery of Certificates of Obligation (COs) in the amount of $7,065,000 (including issuance costs) to fund the various neighborhood, Cooper Creek, and Pecan Creek improvements listed below: $ 450,000 Mingo Road and Paisley Box and Channel 900,000 Ector Street Storm Drain 350,000 Kings Row at Cooper Branch 650,000 Magnolia Street Drainage $ 2,350,000 Total Neighborhood Projects $ 1,340,000 Cooper Creek Detention #2 850,000 Cooper Creek Channel Improvement (Mingo Rd Area) $ 2,190,000 Total Cooper Creek Improvements $ 210,450 Channel Modeling 355,500 Channel Locust to Elm 1,063,500 Channel Elm to Sycamore 1,099,500 $ 2,728,950 Total Pecan Creek Improvements Agenda Information Sheet October 2, 2007 Page 2 The total cost of the projects identified is $7,268,950. The additional costs required above the proceeds from the COs will be funded from other available sources in the Capital Improvement Program. Each of these items meets Management Policy [Section 403.07 X(C)] for which COs may be issued. The Policy specifically states that COs may be issued to: finance permanent improvements and land acquisition, the need for which arose between bond elections finance costs associated with capital project overruns acquire equipment/vehicles The City obtained favorable bond ratings of AA- from Aa3 from on our last bond issuance. While the bond rating for the new COs is not yet known, staff expects to receive a similar rating for this bond issuance as well. These certificates will be sold through a competitive process following the guidelines Management Policy [Section 403.07 XII (A)]. Our financial advisor, First Southwest, will be accepting bids on the certificates on October 2, 2007. The bids will then be presented at the City Council meeting on the evening of October 2, 2007, and the final delivery of funds is expected on November 6, 2007. Your agenda information packet includes various documents as it relates to the issuance of the Certificates of Obligation. Included in your backup is the ordinance authorizing the issuance of the certificates, the preliminary official statement, and paying agent/registrar agreement. PRIOR ACTION/REVIEW (Council, Boards, Commission) This item was discussed during the July 25, 2007, City Council budget workshop and at the August 6, 2007, City Council luncheon. The City Council approved an Ordinance on August 21, 2007, directing the publication of a Notice of Intention to issue the Certificates of Obligation. Agenda Information Sheet October 2, 2007 Page 3 FISCAL INFORMATION An estimated debt service schedule is included on page 19 in the attached Preliminary Official Statement. The estimated average annual debt service payment, including principal and interest, will total approximately $550,000. This payment is anticipated and included in EXHIBITS 1. Ordinance 2. Preliminary Official Statement 3. Paying Agent/Registrar Agreement Respectfully submitted: Bryan Langley Director of Finance AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Solid Waste ACM: Howard Martin, Utilities 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Regional Recyclables Processing Agreement with Visy Recycling, Inc. (d/b/as Pratt Recycling) providing for the construction and operation of a Materials Recovery Facility (“MRF”) located at the City’s landfill; providing additional authority to the City Manager to execute a lease agreement and any other related document; authorizing the expenditure of funds therefor; and providing an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND In October 2006, Pratt Industries contacted the City of Denton’s Economic Development Department, and expressed interest in entering into discussions related to the siting, construction, and operation of a paper and cardboard recovery facility located within the Denton area. The City of Denton and the City of Dallas were both contacted by Pratt and were both candidates in Pratt’s selection process for this potential facility. Pratt Industries ultimately did not select the City of Denton or the City of Dallas for the location of their paper and cardboard recycling facility. In July 2007, the Solid Waste Department issued a Request For Proposals, RFP #3811 - Residential Curbside Recycling and Processing Services. A component of the Request for Proposal sought entities interested in entering into a public-private business relationship with the City of Denton for the construction and operation of a Materials Recovery Facility (MRF) at the city’s landfill site. Pratt Industries, USA submitted a proposal to the City of Denton in response to the RFP, and expressed interest in constructing and operating a regional MRF within the Denton area. Pratt Industries, USA is the USA division of Visy Industries. Visy is one of the largest privately owned closed-material-loop manufacturers in the world and one of the largest recycling companies worldwide. Visy’s 2006 revenues exceeded $3 billion, and their current materials sales exceed 50,000 tons per month in Asian markets. Pratt is the seventh largest corrugated packaging company in America, currently operating in more than a dozen states. Currently through 2007, Pratt Industries, USA has opened MRF’s in New York and Georgia, and has proposed a facility for Denton, Texas. Recyclable materials that would be processed through the MRF include: 1.Denton’s residential curbside recyclables. 2.Denton’s drop-off center recyclables. 3.Recyclables collected through the Solid Waste Department’s commercial recycling program. 4.Residential recyclables delivered to the facility from other communities in the surrounding area. 5.Commercial recyclables delivered to the facility from commercial businesses in the surrounding area. City staff has met with Pratt Industries, and has negotiated a public-private business agreement which includes the following: 1.Pratt Industries will design, construct, and operate a single stream processing MRF on the city’s property. The facility would have processing capacity of 32,000 tons annually, with expansion capability in excess of 50,000 tons annually. 2.Pratt Industries will provide all capital funding to construct the building, and install the processing equipment. 3.Pratt Industries will utilize the local work force to seek employees to work in the recycling facility. 4.Pratt Industries will pay all tap fees, impact fees and utilities used at the facility. 5.Pratt Industries will pay the City of Denton revenues for residential curbside materials processed through the facility, revenues for commercial and drop-off recyclable materials delivered to the MRF, and a host fee for materials from other cities curbside recycling programs delivered to the MRF. 6.Pratt Industries will provide the City of Denton funding for recycling education at a rate of $0.80 per ton of curbside material collection within the city. 7.Pratt Industries will enter into a twenty year contract to operate the facility, with the potential for two ten-year extensions 8.Pratt Industries will lease 6 acres with land lease annual revenue of approximately $31,000. The City of Denton will: 1.Provide a site of 6 acres for the MRF. 2.Direct all City of Denton controllable recyclables to the MRF. 3.Promote recycling and the MRF, to aid in securing additional business, in order to increase the level of materials processed through the facility. 4.Agree to purchase the remaining asset life (net asset value) of the MRF if the City of Denton elects to discontinue recycling services in the future, pursuant with the provisions of the contract. During the Public Utilities Board (PUB) meeting of September 10, 2007, the PUB expressed support of the Pratt Agreement, but asked for additional clarification within the agreement, and the opportunity to review the lease document. The PUB requested the agreement be brought to their September 24, 2007 meeting with the Lease Agreement and Exhibit A, the description of the six acres; and with Exhibit B, the Institute of Scrap Recycling Industries (ISRI) definitions and specifications. OPTIONS The City Council may recommend entering into an agreement with Pratt Industries for the construction and operation of a Materials Recovery Facility (MRF) at the city’s solid waste facility, or the City Council may recommend that the City of Denton not enter into an agreement with Pratt Industries for the construction and operation of a MRF. RECOMMENDATION City staff recommends finalizing the agreements with Pratt Industries for the construction and operation of a Materials Recovery Facility (MRF) at the city’s solid waste facility. PRIOR ACTION/ REVIEW August 13, 2007 – PUB discussion of Pratt MRF. August 21, 2007 – City Council discussion. August 27, 2007 – PUB tabled the agenda. September 10, 2007 – PUB discussion. September 24, 2007 – PUB approved the agreements 6-0. FISCAL INFORMATION Under the Regional Recyclables Processing Agreement, capital funding to construct the facility, and operational funding to operate the facility would be provided by Pratt Industries. The City of Denton will receive revenues from: 1)Denton’s residential curbside tons delivered to the facility, based on a rate established by the total tons delivered to the facility. 2)Denton’s commercial recyclables delivered to the facility. Denton will receive revenues for their commercial recyclables delivered equal to 60% of the commodity price for co- mingled materials, and equal to 75% of the commodity price for sorted materials. 3)All curbside collected single stream materials delivered to the MRF from outside the City of Denton, at the rate of $5.00 / ton. 4)City of Denton single stream curbside materials delivered to the MRF. Denton will receive public education revenue on these tons at the rate of $0.80 / ton. 5)The property lease of the city’s six acre site. The first year projected revenue of $178,890 conservatively assumes only Denton's recyclable to be processed. There would be an anticipated first year expense of $38,500. In year five the projected revenue would be in the range of $300,000 to $350,000 with the plant operating at 75% of initial design capacity with an estimated expense of $89,000. In addition, the city’s recyclable materials transportation cost to deliver commercial recyclables to Pratt will be lower than the current transportation cost, thus reducing expenses approximately $48,000 annually for the Commercial Recycling Division. EXHIBITS 1. Regional Recyclables Processing Agreement 2.Lease Agreement 3.Ordinance 4.PUB Minutes Respectfully submitted: A. Vance Kemler Director of Solid Waste Û¨¸·¾·¬ ï ÷äôóúóèû ÷äôóúóèú éÙÊÛÌ éÌ×ÙÓÖÓÙÛÈÓÍÎÉ ùÓÊÙÇÐÛÊ õÇÓØ×ÐÓÎ×ÉÖÍÊîÍÎÖ×ÊÊÍÇÉéÙÊÛÌ¼ö×ÊÊÍÇÉéÙÊÛÌ¼õÐÛÉÉùÇÐÐ×È ìÛÌ×ÊéÈÍÙÑ¼ìÐÛÉÈÓÙéÙÊÛÌ¼÷Ð×ÙÈÊÍÎÓÙÉéÙÊÛÌ¼èÓÊ×éÙÊÛÌ éÙÊÛÌ éÌ×ÙÓÖÓÙÛÈÓÍÎÉ ùÓÊÙÇÐÛÊ êÇÐ×ÉõÍÆ×ÊÎÓÎÕÈÔ×ìÊÍÙ×ØÇÊ×ÉÖÍÊÈÔ×ûØØÓÈÓÍÎ ûÏ×ÎØÏ×ÎÈÍÊåÓÈÔØÊÛÅÛÐÍÖéÌ×ÙÓÖÓÙÛÈÓÍÎÉ õÇÓØ×ÐÓÎ×ÉÖÍÊ îÍÎÖ×ÊÊÍÇÉéÙÊÛÌîö ê×Øï×ÈÛÐÉ îÍÎÖ×ÊÊÍÇÉéÙÊÛÌ ûÐÇÏÓÎÇÏ ö×ÊÊÍÇÉéÙÊÛÌ âÓÎÙ ïÛÕÎ×ÉÓÇÏ õÐÛÉÉùÇÐÐ×È ð×ÛØ ìÛÌ×ÊéÈÍÙÑ îÓÙÑ×Ð éÈÛÓÎÐ×ÉÉ ôÓè×ÏÌ ïÓÄ×Øï×ÈÛÐÉ ìÐÛÉÈÓÙéÙÊÛÌ íÈÔ×Ê ÷Ð×ÙÈÊÍÎÓÙÉéÙÊÛÌ ö×ÊÊÍÇÉéÙÊÛÌöé èÓÊ×éÙÊÛÌ ÷Ð×ÙÈÊÓÙöÇÊÎÛÙ×ùÛÉÈÓÎÕÛÎØöÍÇÎØÊÃõÊÛØ×É éÌ×ÙÓÛÐÐÃìÊÍÙ×ÉÉ×ØõÊÛØ×É ùÛÉÈóÊÍÎõÊÛØ×É éÌ×ÙÓÛÐúÍÊÓÎÕõÊÛØ×É éÈ××ÐöÊÍÏéÙÊÛÌèÓÊ×É êÛÓÐÊÍÛØö×ÊÊÍÇÉéÙÊÛÌ õÐÛÉÉùÇÐÐ×Èõù ìÛÌ×ÊéÈÍÙÑìé õÐÍÉÉÛÊÃÍÖìÛÌ×ÊéÈÍÙÑè×ÊÏÉ ìÛÌ×ÊéÈÍÙÑìé ìÐÛÉÈÓÙéÙÊÛÌì õÇÓØ×ÐÓÎ×ÉÖÍÊ÷Ð×ÙÈÊÍÎÓÙÉéÙÊÛÌ÷é õÇÓØ×ÐÓÎ×ÉÖÍÊèÓÊ×éÙÊÛÌèé õÇÓØ×ÐÓÎ×ÉÖÍÊï×ÈÛÐÉèÊÛÎÉÛÙÈÓÍÎÉ óéêóûÊÚÓÈÊÛÈÓÍÎé×ÊÆÓÙ× éÇÓÈ× ðéÈÊ××Èîå åÛÉÔÓÎÕÈÍÎøù è×Ð öÛÄ ÅÅÅÓÉÊÓÍÊÕ ìê÷öûù÷ èÔ×ÉÈÛÎØÛÊØÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÓÎÙÐÇØ×ØÓÎÈÔÓÉùÓÊÙÇÐÛÊÛÊ×ÓÎÈ×ÎØ×ØÈÍÛÉÉÓÉÈ Ï×ÏÚ×ÊÉÓÎÈÔ×ÚÇÃÓÎÕÛÎØÉ×ÐÐÓÎÕÍÖÈÔ×ÓÊÏÛÈ×ÊÓÛÐÉÛÎØÌÊÍØÇÙÈÉ èÔ×É×ÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÛÊ×Ø×ÊÓÆ×ØÖÊÍÏÏÛÎÃÉ×ÙÈÍÊÉÍÖÈÔ×Ï×ÈÛÐÉÌÛÌ×Ê ÉÈÍÙÑÌÐÛÉÈÓÙÉÕÐÛÉÉÛÎØ×Ð×ÙÈÊÍÎÓÙÉÓÎØÇÉÈÊÓ×ÉÛÎØÛÊ×ÙÍÎÉÈÊÇÙÈ×ØÈÍÊ×Ì Ê×É×ÎÈÈÔ×ËÇÛÐÓÈÃÍÊÙÍÏÌÍÉÓÈÓÍÎÍÖÈÔ×ÏÛÈ×ÊÓÛÐÉÚÍÇÕÔÈÛÎØÉÍÐØÓÎÈÔ× ÓÎØÇÉÈÊÃèÔ×ÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÛÊ×ÓÎÈ×ÊÎÛÈÓÍÎÛÐÐÃÛÙÙ×ÌÈ×ØÛÎØÛÊ×ÇÉ×Ø ÈÔÊÍÇÕÔÍÇÈÈÔ×ÅÍÊÐØÈÍÈÊÛØ×ÈÔ×ÆÛÊÓÍÇÉÙÍÏÏÍØÓÈÓ×É ìÛÊÈÓ×ÉÈÍÛÈÊÛÎÉÛÙÈÓÍÎÏÛÃÉÌ×ÙÓÖÃÌÛÊÈÓÙÇÐÛÊÆÛÊÓÛÈÓÍÎÉÍÊÛØØÓÈÓÍÎÉÈÍ ÈÔ×É×ÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÛÉÛÊ×ÉÇÓÈ×ØÖÍÊÈÔ×ÓÊÉÌ×ÙÓÖÓÙÈÊÛÎÉÛÙÈÓÍÎÉÛÎØÖÍÊÈÔ×ÓÊ ÓÎØÓÆÓØÇÛÐÙÍÎÆ×ÎÓ×ÎÙ×ûÎÃØ×ÆÓÛÈÓÍÎÖÊÍÏÈÔ×ÉÈÛÎØÛÊØÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÔÍÅ ×Æ×ÊÉÔÍÇÐØÚ×ÏÇÈÇÛÐÐÃÛÕÊ××ØÈÍÛÎØÉÍÉÈÓÌÇÐÛÈ×ØÓÎÅÊÓÈÓÎÕÚÃÈÔ×ÌÛÊÈÓ×É ÈÍÈÔ×ÈÊÛÎÉÛÙÈÓÍÎÉ óéêóÏÛÓÎÈÛÓÎÉÛÎûÊÚÓÈÊÛÈÓÍÎé×ÊÆÓÙ×ÛÉÛÏ×ÛÎÉÍÖ×ÎÛÚÐÓÎÕÏ×ÏÚ×ÊÉÈÍ É×ÈÈÐ×ØÓÖÖ×Ê×ÎÙ×ÉÚ×ÈÅ××ÎÈÔ×ÏÉ×ÐÆ×ÉÍÊÚ×ÈÅ××ÎÍÎ×ÍÖÈÔ×ÏÛÎØÛÎÍÎ Ï×ÏÚ×Ê óÎÛØØÓÈÓÍÎÈÔ×¯õÇÓØ×ÐÓÎ×ÉÖÍÊï×ÈÛÐÉèÊÛÎÉÛÙÈÓÍÎÉ®ÙÍÎÈÛÓÎÉÇÌÌÐ×Ï×ÎÈÛÊÃ ÓÎÖÍÊÏÛÈÓÍÎÈÔÛÈÅÓÐÐÛÓØÏ×ÏÚ×ÊÉÓÎÙÍÏÌÐ×ÈÓÎÕÈÔ×ÓÊÚÇÉÓÎ×ÉÉÈÊÛÎÉÛÙÈÓÍÎÉ óÈÓÉÊ×ÙÍÏÏ×ÎØ×ØÈÔÛÈÈÔ×É×õÇÓØ×ÐÓÎ×ÉÚ×Ê×ÆÓ×Å×ØÛÎØÈÔÛÈÏ×ÏÚ×ÊÉÇÉ× ÈÔ×ÏÓÎÙÍÎÒÇÎÙÈÓÍÎÅÓÈÔÈÔ×ÛÙÈÇÛÐÉÌ×ÙÓÖÓÙÛÈÓÍÎÉÓÎÈÔ×ÙÍÎØÇÙÈÍÖÈÔ×ÓÊ ÚÇÉÓÎ×ÉÉ èÔÓÉ×ØÓÈÓÍÎÙÍÎÈÛÓÎÉÉ×Æ×ÊÛÐÙÔÛÎÕ×ÉÈÍ ùÔÛÎÕ×ÉÓÎÈÔ× ×ØÓÈÓÍÎ ÕÇÓØ×ÐÓÎ×É îÍÎÖ×ÊÊÍÇÉéÌ×ÙÓÖÓÙÛÈÓÍÎÉ éÌ×ÙÓÖÓÙÛÈÓÍÎÉÖÍÊÛÐÇÏÓÎÇÏ×ÄÈÊÇÉÓÍÎÉÔÛÆ×Ú××ÎÛØØ×Ø èÔ×Î×ÅÕÇÓØ×ÐÓÎ×ÉÛÊ× èÛÈÛÌÛÕ× èÍÈÍÌÛÕ× èÇÈÇÌÛÕ× ìÛÌ×ÊéÈÍÙÑéÌ×ÙÓÖÓÙÛÈÓÍÎÉ õÇÓØ×ÐÓÎ×ÉÖÍÊìÛÌ×ÊéÈÍÙÑøÍÏ×ÉÈÓÙèÊÛÎÉÛÙÈÓÍÎÉÙÍÎÈÛÓÎÎ×ÅÐÛÎÕÇÛÕ× õÊÛØ×ÉÛÎØ ÔÛÆ×ÇÌØÛÈ×ØÐÛÎÕÇÛÕ×ÛÎØÕÊÛØ× ÔÛÉÚ××ÎÌÇÈÓÎÈÍ ÇÉ× óéêóÉéÙÊÛÌéÌ×ÙÓÖÓÙÛÈÓÍÎÉùÓÊÙÇÐÛÊÓÉÌÇÚÐÓÉÔ×ØÓÎÌÊÓÎÈÍÎÙ×Ì×ÊÃ×ÛÊèÍ ÓÎÉÇÊ×ÃÍÇÔÛÆ×ÈÔ×ÏÍÉÈÇÌÈÍØÛÈ×Æ×ÊÉÓÍÎÆÓÉÓÈÅÅÅÓÉÊÓÍÊÕ ÉÌ×ÙÉ óÉÉÇ×ØÚÃ ùÍÌÃÊÓÕÔÈ? óÎÉÈÓÈÇÈ×ÍÖéÙÊÛÌê×ÙÃÙÐÓÎÕóÎØÇÉÈÊÓ×ÉóÎÙ èÔÓÉØÍÙÇÏ×ÎÈÏÛÃÎÍÈÚ×Ê×ÌÊÓÎÈ×ØÓÎÅÔÍÐ×ÍÊÓÎÌÛÊÈÅÓÈÔÍÇÈÈÔ×ÌÊÓÍÊ ÅÊÓÈÈ×ÎÌ×ÊÏÓÉÉÓÍÎÍÖÈÔ×óÎÉÈÓÈÇÈ×ÍÖéÙÊÛÌê×ÙÃÙÐÓÎÕóÎØÇÉÈÊÓ×ÉóÎÙ ùóêùçðûê ú÷ùûï÷÷öö÷ùèóæ÷ïÛÃ ûîøìê÷æûóðéçîèóðéçì÷êé÷ø÷ø óîéèóèçè÷íöéùêûìê÷ùãùðóîõóîøçéèêó÷éóîù êÇÐ×ÉõÍÆ×ÊÎÓÎÕÈÔ×ìÊÍÙ×ØÇÊ×ÉÖÍÊÈÔ×ûØØÓÈÓÍÎûÏ×ÎØÏ×ÎÈ ÍÊåÓÈÔØÊÛÅÛÐÍÖéÌ×ÙÓÖÓÙÛÈÓÍÎÉ ûÎÃÌ×ÊÉÍÎÏÛÃÖÓÐ×ÛÊ×ËÇ×ÉÈÈÍÛØØîÍÈÓÙ×ÍÖÈÔ×ÛÙÈÓÍÎÈÛÑ×ÎÚÃÈÔ×úÍÛÊØÉÔÛÐÐÚ×ÕÓÆ×ÎÈÍÛÐÐ óÎÓÈÓÛÈÓÍÎÍÖê×ËÇ×ÉÈ ÓÎÈ×Ê×ÉÈ×ØÌÛÊÈÓ×ÉÅÔÍÛÙÈÓÆ×ÐÃÌÛÊÈÓÙÓÌÛÈ×ØÓÎÈÔ×ùÍÏÏÓÈ ÛÏ×ÎØÍÊÅÓÈÔØÊÛÅÛÉÌ×ÙÓÖÓÙÛÈÓÍÎÚÃÉÇÚÏÓÈÈÓÎÕÉÇÙÔ Ê×ËÇ×ÉÈÓÎÅÊÓÈÓÎÕÈÍÈÔ×óéêóìÊ×ÉÓØ×ÎÈÈ××ÌÊÍÙ××ØÓÎÕÛÎØÛÎÃÍÈÔ×ÊÌ×ÊÉÍÎÉÅÔÍÔÛÆ×Ê×ËÇ×ÉÈ×Ø ÓÎÅÊÓÈÓÎÕÎÍÈÓÙ×ÍÖÈÔ×úÍÛÊØ¬ÉÛÙÈÓÍÎîÍÈÓÙ×ÍÖÉÛÓØÛÙÈÓÍÎ èÔ×ìÊ×ÉÓØ×ÎÈÉÔÛÐÐÊ×Ö×ÊÉÇÙÔÊ×ËÇ×ÉÈÈÍÈÔ×ùÔÛÓÊÏÛÎÍÖ ÛÐÉÍÉÔÛÐÐÚ×ÓÎÉ×ÊÈ×ØÓÎÈÔ×ÖÍÐÐÍÅÓÎÕÈÔ×úÍÛÊØ óéêóöÍÙÇÉ óéêó¬ÉéÌ×ÙÓÖÓÙÛÈÓÍÎÉùÍÏÏÓÈÈ××ÈÔ×¯ùÍÏÏÓÈÈ××®ÅÓÈÔ Ï××ÈÓÎÕÛÈÅÔÓÙÔÉÛÓØÛÙÈÓÍÎÅÛÉÈÛÑ×Î ÙÍÌÓ×ÉÈÍ íÎÍÊÚ×ÖÍÊ×ÈÔÓÊÈÃØÛÃÉÛÖÈ×ÊÈÔ×ØÛÈ×ÍÖÈÔ× ûÌÌ×ÛÐ ûóéêó¬ÉíÖÖÓÙ×ÊÉ ÎÍÈÓÙ×Ê×ËÇÓÊ×ØÓÎé×ÙÈÓÍÎÛÎÃÌÛÊÈÃÏÛÃÛÌÌ×ÛÐÈÔ× Ø×ÙÓÉÓÍÎÍÖÈÔ×úÍÛÊØÚÃÅÊÓÈÈ×ÎÎÍÈÓÙ×ÈÍÈÔ×ìÊ×ÉÓØ×ÎÈ úèÔ×ÙÔÛÓÊÏÛÎÍÖÛÎÃóéêóøÓÆÓÉÓÍÎÛÎØ ÍÊùÍÏÏÓÈÈ×× éÛÓØÛÌÌ×ÛÐÉÔÛÐÐÉÈÛÈ×ÈÔ×Ê×ÛÉÍÎÉÈÔ×Ê×ÍÖÛÎØÈÔ× ÈÔÛÈÏÓÕÔÈÚ×ÛÖÖ×ÙÈ×ØÚÃÈÔ×ÉÌ×ÙÓÖÓÙÛÈÓÍÎ Ê×ËÇ×ÉÈ×ØÛÙÈÓÍÎÈÍÚ×ÈÛÑ×ÎîÍÈÓÙ×ÍÖÉÛÓØÛÌÌ×ÛÐÉÔÛÐÐÚ× öÍÐÐÍÅÓÎÕÓÈÉÊ×Ù×ÓÌÈÎÍÈÓÙ×ÍÖÈÔ×Ê×ËÇ×ÉÈÉÔÛÐÐÚ× îÍÈÓÙ× ÕÓÆ×ÎÓÎÛÙÙÍÊØÛÎÙ×ÅÓÈÔé×ÙÈÓÍÎ ÓÎÉ×ÊÈ×ØÓÎÈÔ×ÛÎØÛØÛÓÐÃÎÛÈÓÍÎÛÐÈÊÛØ×ÌÇÚÐÓ óéêóöÍÙÇÉ èÔ×ÛÌÌ×ÛÐÉÔÛÐÐÚ×Ô×ÛÊØÚÃÈÔ×úÍÛÊØÛÈÓÈÉÎ×ÄÈËÇÛÊÈ×ÊÐÃ ÙÛÈÓÍÎÉÇÙÔÛÉéÇÙÔÎÍÈÓÙ×ÉÔÛÐÐ ûÏ×ÊÓÙÛÎï×ÈÛÐïÛÊÑ×È Ï××ÈÓÎÕÖÍÐÐÍÅÓÎÕÊ×Ù×ÓÌÈÈÔ×Ê×ÍÖ ÉÈÛÈ× èÔ×ÛÌÌ×ÐÐÛÎÈÛÎØÛÐÐÓÎÈ×Ê×ÉÈ×ØÌÛÊÈÓ×ÉÉÔÛÐÐÚ×ÕÓÆ×ÎÛÈ ûèÔ×ØÛÈ×ÈÓÏ×ÛÎØÌÐÛÙ×ÛÈÅÔÓÙÔÈÔ×Ê×ËÇ×ÉÈÅÓÐÐÚ× Ð×ÛÉÈÈÅ×ÎÈÃØÛÃÉÎÍÈÓÙ×ÍÖÈÔ×ØÛÈ×ÈÓÏ×ÛÎØÌÐÛÙ×ÍÖÈÔ× ÙÍÎÉÓØ×Ê×ØÚÃÈÔ×ùÍÏÏÓÈÈ×× Ô×ÛÊÓÎÕÛÎØÐÓÑ×ÎÍÈÓÙ×ÉÔÛÐÐÚ×ÓÎÉ×ÊÈ×ØÓÎÈÔ× óéêóöÍÙÇÉ úèÔÛÈÈÔ×ÌÊÍÙ××ØÓÎÕÛÈÅÔÓÙÔÈÔ×Ê×ËÇ×ÉÈÅÓÐÐÚ×ÙÍÎ ÛÈÐ×ÛÉÈÈÅ×ÎÈÃØÛÃÉÌÊÓÍÊÈÍÈÔ×Ô×ÛÊÓÎÕ ÉÓØ×Ê×ØÉÔÛÐÐÚ×ÍÌ×ÎÈÍÈÔ×ÌÇÚÐÓÙ ûÈÈÔ×Ô×ÛÊÓÎÕÈÔ×ÛÌÌ×ÐÐÛÎÈÛÎØÛÎÃÍÈÔ×ÊÓÎÈ×Ê×ÉÈ×ØÌÛÊ ùèÔÛÈÓÎÈ×Ê×ÉÈ×ØÌÛÊÈÓ×ÉÏÛÃÌÛÊÈÓÙÓÌÛÈ×ÓÎÈÔ×ÌÊÍÙ××Ø ÈÃÏÛÃÛÌÌ×ÛÊ×ÓÈÔ×ÊÓÎÌ×ÊÉÍÎÍÊÚÃÅÊÓÈÈ×ÎÌÊ×É×ÎÈÛÈÓÍÎ ÓÎÕÚÃÌ×ÊÉÍÎÛÐÛÌÌ×ÛÊÛÎÙ×ÍÊÚÃÉÇÚÏÓÈÈÓÎÕÅÊÓÈÈ×Î ÛÎØÉÈÛÈ×ÈÔ×ÓÊÊ×ÛÉÍÎÉÖÍÊÈÔ×ÛÌÌ×ÛÐ ÙÍÏÏ×ÎÈÉ èÔ×úÍÛÊØÖÍÐÐÍÅÓÎÕÉÛÓØÔ×ÛÊÓÎÕÉÔÛÐÐÊ×ÆÓ×ÅÛÎØÛÙÈ øûÉÇÏÏÛÊÃÍÖÈÔ×ÉÌ×ÙÓÖÓÙÛÈÓÍÎÛÎØÈÔ×ÏÛÈÈ×ÊÈÍÚ× ÇÌÍÎÈÔ×ÛÌÌ×ÛÐÊ×ËÇ×ÉÈîÍÈÓÙ×ÍÖÈÔ×úÍÛÊØÉÛÙÈÓÍÎÉÔÛÐÐ ÙÍÎÉÓØ×Ê×ØÛÈÈÔ×Ô×ÛÊÓÎÕ Ú×ÕÓÆ×ÎÓÎÛÙÙÍÊØÛÎÙ×ÅÓÈÔé×ÙÈÓÍÎ öÍÐÐÍÅÓÎÕÌÊ×É×ÎÈÛÈÓÍÎÚÃÛÐÐÓÎÈ×Ê×ÉÈ×Ø ùÍÏÏÓÈÈ××ûÙÈÓÍÎ óéêóÉÔÛÐÐÏÛÓÎÈÛÓÎÖÍÊÎÍÈÐ×ÉÉÈÔÛÎÖÓÆ×Ã×ÛÊÉÖÍÐ ê×ÙÍÊØÉ ÌÛÊÈÓ×ÉÈÔ×ùÍÏÏÓÈÈ××ÉÔÛÐÐÊ×ÆÓ×ÅÈÔ×Ê×ËÇ×ÉÈÛÎØ ÐÍÅÓÎÕÈÔ×ØÛÈ×ÍÖÈ×ÊÏÓÎÛÈÓÍÎÍÖÈÔ×ÌÊÍÙ××ØÓÎÕÉÊ×ÙÍÊØÉ ÍÖÈÔ×ÍÊÓÕÓÎÛÐÊ×ËÇ×ÉÈÉÇÏÏÛÊÓ×ÉÍÖÈÔ×Ø×ÐÓÚ×ÊÛÈÓÍÎÉÛÎØ ûûÙÈÇÌÍÎÓÈÓÏÏ×ØÓÛÈ×ÐÃÛÉÉ×ÈÖÍÊÈÔÓÎé×ÙÈÓÍÎÍÊ Ê×ÙÍÏÏ×ÎØÛÈÓÍÎÉÍÖÈÔ×ùÍÏÏÓÈÈ××ÛÙÈÓÍÎÍÖÈÔ×úÍÛÊØ úê×Ö×ÊÓÈÈÍÛÉÇÚÙÍÏÏÓÈÈ××ÖÍÊÊ×ÆÓ×ÅÛÎØÊ×ÙÍÏÏ×Î ÉÇÏÏÛÊÓ×ÉÍÖÈÔ×ÛÌÌ×ÛÐÛÎØÖÓÎÛÐØ×ÙÓÉÓÍÎÓÖÛÎÃÍÖÈÔ× ØÛÈÓÍÎÖÍÊÛÙÈÓÍÎÚÃÈÔ×ÖÇÐÐùÍÏÏÓÈÈ××ÛÈÓÈÉÎ×ÄÈ úÍÛÊØÈÍÕ×ÈÔ×ÊÅÓÈÔÈÔ×ÌÍÉÓÈÓÍÎÉÍÖÓÎÈ×Ê×ÉÈ×ØÌÛÊÈÓ×É Ï××ÈÓÎÕ ÙÍÌÓ×ÉÍÖÎÍÈÓÙ×ÉÉ×ÎÈÈÍÓÎÈ×Ê×ÉÈ×ØÌÛÊÈÓ×ÉÛÎØÓÎÉ×ÊÈ×ØÓÎ ÈÔ×ÛÎØÎÛÈÓÍÎÛÐÈÊÛØ×ÌÇÚÐÓÙÛÈÓÍÎÉÅÊÓÈÈ×Î óéêóöÍÙÇÉ èÔ×ùÍÏÏÓÈÈ××ÉÔÛÐÐÉÇÏÏÛÊÓÂ×ÈÔ×ÌÍÉÓÈÓÍÎÉÛØÆÍÙÛÈ×Ø ÉÈÛÈ×Ï×ÎÈÉÛÎØÈÔ×Ê×ÛÉÍÎÉÖÍÊÊ×ÙÍÏÏ×ÎØÛÈÓÍÎÛÎØÖÓÎÛÐ ÚÃÈÔ×ÆÛÊÓÍÇÉÌÛÊÈÓ×ÉÓÎÈ×Ê×ÉÈ×ØÓÎÈÔ×Ê×ËÇ×ÉÈÛÎØÊ×ÙÍÏ ÛÙÈÓÍÎÚÃÈÔ×ùÍÏÏÓÈÈ××ÛÎØÈÔ×úÍÛÊØ Ï×ÎØÈÍóéêó¬ÉúÍÛÊØÍÖøÓÊ×ÙÈÍÊÉÅÔÛÈÛÙÈÓÍÎÉÔÍÇÐØÚ× ÈÛÑ×Î éÛÓØÊ×ÙÍÊØÉÉÔÛÐÐÚ×ÛÆÛÓÐÛÚÐ×ÖÍÊÊ×ÆÓ×ÅÚÃÈÔ×ÌÇÚÐÓÙ ÇÌÍÎÊ×ÛÉÍÎÛÚÐ×ÎÍÈÓÙ× èÔ×úÍÛÊØÍÖøÓÊ×ÙÈÍÊÉÛÈÓÈÉ úÍÛÊØÍÖøÓÊ×ÙÈÍÊÉûÙÈÓÍÎ ËÇÛÊÈ×ÊÐÃÏ××ÈÓÎÕÛÈÅÔÓÙÔÈÔ×Ê×ÌÍÊÈÛÎØÊ×ÙÍÏÏ×ÎØÛ ÈÓÍÎÍÖÈÔ×ùÍÏÏÓÈÈ××ÔÛÉÚ××ÎÏÛØ×ÉÔÛÐÐÛØÍÌÈÛÏ×ÎØ ÍÊÊ×Ò×ÙÈÈÔ×Ê×ÙÍÏÏ×ÎØÛÈÓÍÎÍÊÈÛÚÐ×ÓÈÌ×ÎØÓÎÕÖÇÊÈÔ×Ê Ê×ÆÓ×ÅÛÎØÊ×ÙÍÏÏ×ÎØÛÈÓÍÎÚÃÈÔ×ùÍÏÏÓÈÈ×× éùêûìéì÷ùóöóùûèóíîéùóêùçðûê õÇÓØ×ÐÓÎ×ÉÖÍÊîÍÎÖ×ÊÊÍÇÉéÙÊÛÌîö åÔ×ÎÈÔ×ÓÎØÓÆÓØÇÛÐÉÙÊÛÌÕÊÛØ×ÉÓÎÈÔÓÉùÓÊÙÇÐÛÊØ×ÎÍÈ×ØÚÃÈÔ×ÆÛÊÓÍÇÉÙÍØ×ÅÍÊØÉÛÊ×ÇÉ×ØÛÎÛÕÊ××Ï×ÎÈÚ×ÈÅ××ÎÌÛÊ îÍÈ× ÈÓ×ÉÓÉÛÐÉÍÚÍÇÎØÚÃÈÔ×È×ÊÏÉÍÖ¯ûÌÌÐ×®ÛÉÓÈÛÌÌ×ÛÊÉÚ×ÐÍÅÇÎÐ×ÉÉÈÔ×È×ÊÏÉÛÎØÙÍÎØÓÈÓÍÎÉÍÖÛÉÌ×ÙÓÖÓÙÙÍÎÈÊÛÙÈÌÊÍÆÓØ×ÍÈÔ×Ê ÅÓÉ×ÓÎÅÔÓÙÔÙÛÉ×ÈÔ×ÉÌ×ÙÓÖÓÙÙÍÎÈÊÛÙÈÇÛÐÌÊÍÆÓÉÓÍÎÉÉÔÛÐÐÕÍÆ×ÊÎ ùíø÷óè÷ïùíø÷óè÷ï ûÌÌÐ×îÍÎÖ×ÊÊÍÇÉè×ÊÏÉ ê÷øï÷èûðé Ûø×ÐÓÆ×ÊÃÍÖÏÍÊ×ÍÊÐ×ÉÉÍÖÈÔ×ÉÌ×ÙÓÖÓ×ØËÇÛÎÈÓÈÃÇÌ ÈÍ Ì×ÊÙ×ÎÈÓÉÌ×ÊÏÓÉÉÓÚÐ× úÛÊÐ×ÃîÍùíìì÷êåóê÷ ÚûÈÍÎÉÔÛÐÐÚ×ÇÎØ×ÊÉÈÍÍØÈÍÚ× éÔÛÐÐÙÍÎÉÓÉÈÍÖîÍÚÛÊ×ÇÎÙÍÛÈ×ØÇÎÛÐÐÍÃ×ØÙÍÌÌ×Ê ÇÎÐ×ÉÉÍÈÔ×ÊÅÓÉ×ÉÌ×ÙÓÖÓ×ØÅÓÊ×ÎÍÈÉÏÛÐÐ×ÊÈÔÛÎîÍúéÅÓÊ×ÕÛÇÕ×õÊ××Î ÙÍÌÌ×ÊÅÓÊ×ÛÎØÔÃØÊÛÇÐÓÙÛÐÐÃÙÍÏÌÛÙÈ×ØÏÛÈ×ÊÓÛÐÈÍ ÙóÖÛÎÃÌÍÊÈÓÍÎÍÖÈÔ×ÕÍÍØÉÙÍÆ×Ê×ØÚÃÛÙÍÎÈÊÛÙÈÛÊ× Ú×ÉÇÚÒ×ÙÈÈÍÛÕÊ××Ï×ÎÈÚ×ÈÅ××ÎÚÇÃ×ÊÛÎØÉ×ÐÐ×Ê ÇÎÉÔÓÌÌ×ØÍÊÇÎØ×ÐÓÆ×Ê×ØÅÓÈÔÓÎÈÔ×ÈÓÏ×ÉÌ×ÙÓÖÓ×ØÓÎ ÛÙÍÎÈÊÛÙÈÈÔ×ÎÈÔÛÈÌÍÊÈÓÍÎÓÉÉÇÚÒ×ÙÈÈÍÙÛÎÙ×ÐÐÛÈÓÍÎ ú×ÊÊÃîÍùíìì÷êåóê÷ ÚÃÈÔ×ÚÇÃ×ÊÛÎØ ÍÊÈÔ×ÚÇÃ×ÊÔÛÉÈÔ×ÊÓÕÔÈÈÍÔÍÐØ éÔÛÐÐÙÍÎÉÓÉÈÍÖÙÐ×ÛÎÇÎÈÓÎÎ×ØÇÎÙÍÛÈ×ØÇÎÛÐÐÍÃ×Ø ÈÔ×É×ÐÐ×ÊÊ×ÉÌÍÎÉÓÚÐ×ÖÍÊÉÇÚÉÈÛÎÈÓÛÈ×ØØÛÏÛÕ×É ÙÍÌÌ×ÊÅÓÊ×ÛÎØÙÛÚÐ×ÎÍÈÉÏÛÐÐ×ÊÈÔÛÎîÍúé óÖÚ×ÙÛÇÉ×ÍÖ×ÏÚÛÊÕÍÛÎØ ÍÊÍÈÔ×ÊÙÍÎØÓÈÓÍÎÉÍÖ ÅÓÊ×ÕÛÇÕ×ÖÊ××ÍÖÚÇÊÎÈÅÓÊ×ÅÔÓÙÔÓÉÚÊÓÈÈÐ×ôÃØÊÛÇÐÓ ÖÍÊÙ×ÏÛÒ×ÇÊ×ÛØ×ÐÓÆ×ÊÃÍÊÉÔÓÌÏ×ÎÈÙÛÎÎÍÈÚ× ÙÛÐÐÃÚÊÓËÇ×ÈÈ×ØÙÍÌÌ×ÊÉÇÚÒ×ÙÈÈÍÛÕÊ××Ï×ÎÈ ÏÛØ×ÚÃÈÔ×ÈÓÏ×ÉÌ×ÙÓÖÓ×ØÈÔ×ÙÍÎÈÊÛÙÈÉÔÛÐÐÊ×ÏÛÓÎ úÓÊÙÔîÍ ùíìì÷êåóê÷ ÆÛÐÓØÛÎØÉÔÛÐÐÚ×ÙÍÏÌÐ×È×ØÌÊÍÏÌÈÐÃÇÌÍÎÐÓÖÈÓÎÕÍÖ éÔÛÐÐÙÍÎÉÓÉÈÍÖÏÓÉÙ×ÐÐÛÎ×ÍÇÉÇÎÛÐÐÍÃ×ØÙÍÌÌ×ÊÅÓÊ× ÈÔ××ÏÚÛÊÕÍÛÎØ ÍÊÙÍÎØÓÈÓÍÎÉÍÖÖÍÊÙ×ÏÛÒ×ÇÊ×ÛÎØ ÔÛÆÓÎÕÛÎÍÏÓÎÛÐÙÍÌÌ×ÊÙÍÎÈ×ÎÈÏÓÎÓÏÇÏ ÈÔ×È×ÊÏÉÍÖÉÛÓØÙÍÎÈÊÛÙÈÉÔÛÐÐÎÍÈÚ×ÙÔÛÎÕ×Ø ÛÉØ×È×ÊÏÓÎ×ØÚÃ×Ð×ÙÈÊÍÐÃÈÓÙÛÉÉÛÃéÔÍÇÐØÚ× ØóÖÖÍÊÛÎÃÌÍÊÈÓÍÎÍÖÛÙÍÎÈÊÛÙÈÈÔ×ÚÇÃ×ÊÖÛÓÐÉÓÎÛ ÖÊ××ÍÖÈÔ×ÖÍÐÐÍÅÓÎÕ÷ÄÙ×ÉÉÓÆ×ÐÃÐ×ÛØ×ØÈÓÎÎ×ØÉÍÐ ÈÓÏ×ÐÃÏÛÎÎ×ÊÈÍÍÌ×ÎÛð×ÈÈ×ÊÍÖùÊ×ØÓÈÛÎØ ÍÊÖÛÓÐÉ Ø×Ê×ØÙÍÌÌ×ÊÅÓÊ×ÚÊÛÉÉÛÎØÚÊÍÎÂ×ÅÓÊ××ÄÙ×ÉÉÓÆ×ÍÓÐ ÈÍÌÊÍÆÓØ×ÌÊÍÌ×ÊÙÍÎÆ×ÃÛÎÙ×ÛÎØ ÍÊÉÔÓÌÌÓÎÕ ÙÍÎÈ×ÎÈÓÊÍÎÛÎØÎÍÎÏ×ÈÛÐÐÓÙÉÙÍÌÌ×ÊÅÓÊ×ÖÊÍÏ ÓÎÉÈÊÇÙÈÓÍÎÉÛÉÉÌ×ÙÓÖÓ×ØÓÎÈÔ×ÙÍÎÈÊÛÙÈÈÔ×ÎÈÔÛÈ ÚÇÊÎÓÎÕÙÍÎÈÛÓÎÓÎÕÓÎÉÇÐÛÈÓÍÎÔÛÓÊÅÓÊ×ÚÇÊÎÈÅÓÊ× ÌÍÊÈÓÍÎÓÉÉÇÚÒ×ÙÈÈÍÙÛÎÙ×ÐÐÛÈÓÍÎÚÃÈÔ×É×ÐÐ×ÊÛÎØ ÍÊ ÅÔÓÙÔÓÉÚÊÓÈÈÐ×ÛÎØÉÔÍÇÐØÚ×Ê×ÛÉÍÎÛÚÐÃÖÊ××ÍÖÛÉÔ ÈÔ×É×ÐÐ×ÊÔÛÉÈÔ×ÊÓÕÔÈÈÍÔÍÐØÈÔ×ÚÇÃ×ÊÊ×ÉÌÍÎÉÓÚÐ× ôÃØÊÛÇÐÓÙÛÐÐÃÚÊÓËÇ×ÈÈ×ØÙÍÌÌ×ÊÉÇÚÒ×ÙÈÈÍÛÕÊ××Ï×ÎÈ ÖÍÊÉÇÚÉÈÛÎÈÓÛÈ×ØØÛÏÛÕ×É ùÛÎØÃîÍô÷ûæãùíìì÷ê óÖÚ×ÙÛÇÉ×ÍÖ×ÏÚÛÊÕÍÛÎØ ÍÊÍÈÔ×ÊÙÍÎØÓÈÓÍÎÉÍÖ éÔÛÐÐÙÍÎÉÓÉÈÍÖÙÐ×ÛÎÇÎÛÐÐÍÃ×ØÇÎÙÍÛÈ×ØÙÍÌÌ×ÊÙÐÓÌ ÖÍÊÙ×ÏÛÒ×ÇÊ×ÛØ×ÐÓÆ×ÊÃÍÊÉÔÓÌÏ×ÎÈÙÛÎÎÍÈÚ× ÌÓÎÕÉÌÇÎÙÔÓÎÕÉÚÇÉÚÛÊÉÙÍÏÏÇÈÛÈÍÊÉ×ÕÏ×ÎÈÉÛÎØ ÏÛØ×ÚÃÈÔ×ÈÓÏ×ÉÌ×ÙÓÖÓ×ØÈÔ×ÙÍÎÈÊÛÙÈÉÔÛÐÐÊ×ÏÛÓÎ ÅÓÊ×ÎÍÈÐ×ÉÉÈÔÛÎ ÍÖÛÎÓÎÙÔÈÔÓÙÑÖÊ××ÍÖÚÇÊÎÈÅÓÊ× ÆÛÐÓØÛÎØÉÔÛÐÐÚ×ÙÍÏÌÐ×È×ØÌÊÍÏÌÈÐÃÇÌÍÎÐÓÖÈÓÎÕÍÖ ÅÔÓÙÔÓÉÚÊÓÈÈÐ×ÚÇÈÏÛÃÓÎÙÐÇØ×ÙÐ×ÛÎÙÍÌÌ×ÊÈÇÚÓÎÕ ÈÔ××ÏÚÛÊÕÍÛÎØ ÍÊÙÍÎØÓÈÓÍÎÉÍÖÖÍÊÙ×ÏÛÒ×ÇÊ×ÛÎØ ôÃØÊÛÇÐÓÙÛÐÐÃÚÊÓËÇ×ÈÈ×ØÙÍÌÌ×ÊÉÇÚÒ×ÙÈÈÍÛÕÊ××Ï×ÎÈ ÈÔ×È×ÊÏÉÍÖÉÛÓØÙÍÎÈÊÛÙÈÉÔÛÐÐÎÍÈÚ×ÙÔÛÎÕ×Ø ×óÖÛÉÓÕÎÓÖÓÙÛÎÈÅ×ÓÕÔÈÍÊËÇÛÐÓÈÃØÓÖÖ×Ê×ÎÙ×ÓÉÛÌÌÛÊ ùÐÓÖÖîÍ ùíìì÷ê ×ÎÈÈÔ×É×ÐÐ×ÊÉÔÍÇÐØÚ×ÎÍÈÓÖÓ×ØÌÊÍÏÌÈÐÃÛÎØÓÖ éÔÛÐÐÙÍÎÉÓÉÈÍÖÏÓÉÙ×ÐÐÛÎ×ÍÇÉÇÎÛÐÐÍÃ×ØÙÍÌÌ×ÊÉÙÊÛÌ Ê×ËÇ×ÉÈ×ØÛÎÍÈÔ×ÊÅ×ÓÕÔÈÍÊËÇÛÐÓÈÃØ×È×ÊÏÓÎÛÈÓÍÎ ÔÛÆÓÎÕÛÎÍÏÓÎÛÐÙÍÌÌ×ÊÙÍÎÈ×ÎÈÏÓÎÓÏÇÏ ÉÔÍÇÐØÚ×ÈÛÑ×Îé×ÐÐ×ÊÛÎØ ÍÊÚÇÃ×ÊÉÔÍÇÐØÚ×ÕÓÆ×Î ÛÉØ×È×ÊÏÓÎ×ØÚÃ×Ð×ÙÈÊÍÐÃÈÓÙÛÉÉÛÃéÔÍÇÐØÚ×ÖÊ××ÍÖ ÈÔ×ÍÌÌÍÊÈÇÎÓÈÃÈÍÛÌÌÍÓÎÈÛÎÓÎØ×Ì×ÎØ×ÎÈÉÇÊÆ×ÃÍÊ ÈÔ×ÖÍÐÐÍÅÓÎÕ÷ÄÙ×ÉÉÓÆ×ÐÃÐ×ÛØ×ØÈÓÎÎ×ØÉÍÐØ×Ê×ØÙÍÌ ÍÊÛÊ×ÌÊ×É×ÎÈÛÈÓÆ×ÈÍÆ×ÊÓÖÃÅ×ÓÕÔÈÉÛÎØ ÍÊËÇÛÐÓÈÃ Ì×ÊÉÙÊÛÌÚÊÛÉÉ×ÉÛÎØÚÊÍÎÂ×É×ÄÙ×ÉÉÓÆ×ÍÓÐÙÍÎÈ×ÎÈ öÍÊÌÇÊÌÍÉ×ÉÍÖÈÔÓÉÉ×ÙÈÓÍÎÈÔ×Ï×ÛÎÓÎÕÍÖÈÔ× ÓÊÍÎÛÎØÎÍÎÏ×ÈÛÐÐÓÙÉÙÍÌÌ×ÊÈÇÚÓÎÕÅÓÈÔÍÈÔ×ÊÈÔÛÎ ÅÍÊØ¯ÉÓÕÎÓÖÓÙÛÎÈ®ÉÔÛÐÐÚ×Ø×È×ÊÏÓÎ×ØÚÃÛÕÊ×× ÙÍÌÌ×ÊÙÍÎÎ×ÙÈÓÍÎÉÍÊÅÓÈÔÉ×ØÓÏ×ÎÈÙÍÌÌ×ÊÅÓÊ×ÖÊÍÏ Ï×ÎÈÚ×ÈÅ××ÎÚÇÃ×ÊÛÎØÉ×ÐÐ×ÊØ×Ì×ÎØÓÎÕÍÎÈÔ× ÚÇÊÎÓÎÕÙÍÎÈÛÓÎÓÎÕÓÎÉÇÐÛÈÓÍÎÔÛÓÊÅÓÊ×ÚÇÊÎÈÅÓÊ× ÙÍÏÏÍØÓÈÓ×ÉÛÎØÈÔ×ÓÊÆÛÐÇ×É ÅÔÓÙÔÓÉÚÊÓÈÈÐ×ÛÎØÉÔÍÇÐØÚ×Ê×ÛÉÍÎÛÚÐÃÖÊ××ÍÖÛÉÔ ôÃØÊÛÇÐÓÙÛÐÐÃÚÊÓËÇ×ÈÈ×ØÙÍÌÌ×ÊÉÇÚÒ×ÙÈÈÍÛÕÊ××Ï×ÎÈ ÖóÖÓÈÓÉÏÇÈÇÛÐÐÃØ×È×ÊÏÓÎ×ØÈÔÛÈÕÍÍØÉØ×ÐÓÆ×Ê×ØØÍ ÎÍÈÙÍÎÖÍÊÏÈÍÈÔ×Ø×ÉÙÊÓÌÈÓÍÎÉÌ×ÙÓÖÓ×ØÓÎÈÔ×ÙÍÎ ùÐÍÆ×îÍùíìì÷êåóê÷îíøçð÷é ÈÊÛÙÈÈÔ×ÎÈÔ×ÉÔÓÌÏ×ÎÈÓÉÉÇÚÒ×ÙÈÈÍÊ×Ò×ÙÈÓÍÎÍÊ éÔÛÐÐÙÍÎÉÓÉÈÍÖîÍÚÛÊ×ÇÎÙÍÛÈ×ØÇÎÛÐÐÍÃ×ØÙÍÌÌ×Ê ØÍÅÎÕÊÛØ× ÅÓÊ×ÉÙÊÛÌÎÍØÇÐ×ÉÙÔÍÌÌ×ØÍÊÉÔÊ×ØØ×ØÖÊ××ÍÖÈÓÎ øÓÉÌÍÉÓÈÓÍÎÍÖÊ×ÌÐÛÙ×Ï×ÎÈÍÖÛÎØ ÍÊÖÓÎÛÎÙÓÛÐ Ð×ÛØÂÓÎÙÛÐÇÏÓÎÇÏÓÊÍÎÍÈÔ×ÊÏ×ÈÛÐÐÓÙÓÏÌÇÊÓÈÓ×É ÛØÒÇÉÈÏ×ÎÈÖÍÊÊ×Ò×ÙÈ×ØÏÛÈ×ÊÓÛÐÉÔÛÐÐÚ×ÉÇÚÒ×ÙÈ×Ø ÓÎÉÇÐÛÈÓÍÎÛÎØÍÈÔ×ÊÖÍÊ×ÓÕÎÙÍÎÈÛÏÓÎÛÈÓÍÎïÓÎÓÏÇÏ ÈÍÏÇÈÇÛÐÛÕÊ××Ï×ÎÈÚ×ÈÅ××ÎÚÇÃ×ÊÛÎØÉ×ÐÐ×Êé×ÐÐ ÙÍÌÌ×ÊõÛÇÕ×ÉÏÛÐÐ×ÊÈÔÛÎîÍúéÅÓÊ×ÛÎØ ×ÊÓÉÊ×ÉÌÍÎÉÓÚÐ×ÖÍÊÖÊ×ÓÕÔÈÙÍÉÈÉ ÔÃØÊÛÇÐÓÙÛÐÐÃÙÍÏÌÛÙÈ×ØÏÛÈ×ÊÓÛÐÉÇÚÒ×ÙÈÈÍÛÕÊ×× úÇÃ×ÊÓÉ×ÄÌ×ÙÈ×ØÔÍÅ×Æ×ÊÈÍ×Ä×ÊÈ×Æ×ÊÃ×ÖÖÍÊÈÈÍ Ï×ÎÈÚ×ÈÅ××ÎÚÇÃ×ÊÛÎØÉ×ÐÐ×Ê ÐÓÏÓÈÊ×Ò×ÙÈÓÍÎÉÍÎÐÃÈÍÈÔÛÈÌÍÊÈÓÍÎÍÖÈÔ×ÉÔÓÌÏ×ÎÈ ùÍÚÊÛîÍ ùíìì÷êåóê÷îíøçð÷é ÅÔÓÙÔÓÉÇÎÉÍÊÈÛÚÐ×ÛÎØÈÍÊ×ÈÇÊÎÈÔ×Ê×Ò×ÙÈ×ØÌÍÊ éÔÛÐÐÙÍÎÉÓÉÈÍÖîÍ ÇÎÛÐÐÍÃ×ØÙÍÌÌ×ÊÅÓÊ×ÉÙÊÛÌÎÍØ ÈÓÍÎÌÊÍÏÌÈÐÃÇÌÍÎÊ×ËÇ×ÉÈÓÖÕÍÆ×ÊÎÏ×ÎÈÊ×ÕÇÐÛ ÇÐ×ÉÙÔÍÌÌ×ØÍÊÉÔÊ×ØØ×ØÏÓÎÓÏÇÏÙÍÌÌ×Ê ÈÓÍÎÉÌ×ÊÏÓÈ ïÛÄÓÏÇÏÏ×ÈÛÐÓÏÌÇÊÓÈÓ×ÉÎÍÈÈÍ×ÄÙ××Ø ÛÐÇ óîéèóèçè÷íöéùêûìê÷ùãùðóîõóîøçéèêó÷éóîù õÇÓØ×ÐÓÎ×ÉÖÍÊîÍÎÖ×ÊÊÍÇÉéÙÊÛÌ ùíø÷óè÷ïùíø÷óè÷ï ÏÓÎÇÏÛÎØ×ÛÙÔÍÖÍÈÔ×ÊÏ×ÈÛÐÉÍÊÓÎÉÇÐÛÈÓÍÎÌÓ×Ù×ÈÍÏ×ÛÉÇÊ×ÏÍÊ×ÈÔÛÎ SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM aluminum bronze and manganese bronze, and not to contain morethanl5%nickel plated material. CODE ITEM Niece NICKEL SILVER TURNINGS To be sold by sample or analysis. Guidelines for Nonferrous Scrap Label NEW BRASS CLIPPINGS Night Shall consist of the cuttings of new unleaded yellow brass sheet or plate, to be clean and free from foreign substances and not to contain more than 10% of clean brass punchings under'/4 inch. To be free of Muntz metal and naval brass. Lace BRASS SHELL CASES WITHOUT PRIMERS Shall consist of clean fired 70/30 brass shell cases free of primers and any other foreign material. Lady BRASS SHELL CASES WITH PRIMERS Shall consist of clean fired 70/30 brass shell cases con- tainingthe brass primers, and containing no other for- eignmaterial. Lake BRASS SMALL ARMS AND RIFLE SHELLS, CLEAN FIRED Shall consist of clean fired 70/30 brass shells freeof bullets, iron and any other foreign material. YELLOW BRASS ROD TURNINGS Shall consist strictly of rod turnings, free of aluminum, manganese, composition, Tobin and Muntz metal turn- ings; not to contain over 3% free iron, oil or other moisture; to be free of grindings and babbitts; tocon- tainnot more than 0.30% tin and not more than 0.15% alloyed iron. Noble NEW YELLOW BRASS ROD ENDS Shall consist of new, clean rod ends from free turning brass rods or forging rods, not to contain more than 0.30% tin and not more than 0.15% alloyed iron. To be free of Muntz metal and naval brass or any other alloys. To be in pieces not largerthanl2"and freeof foreign matter. Nomad YELLOW BRASS TURNINGS Lamb BRASS SMALL ARMS AND RIFLE SHELLS, CLEAN MUFFLED (POPPED) Shall consist of clean muffled (popped) 70/30 brass shells free of bullets, iron and any other foreign material. Ocean Lark YELLOW BRASS PRIMER Shall consist of clean yellow brass primers, burnt or unburnt. Shall be free of iron, excessive dirt, corrosion and any other foreign material. Maize MIXED NEW NICKEL SILVER CLIPPINGS Shall consist of one or more nickel silver alloys and the range of nickel content to be specified, free of chrome or any other plating material. Leaded nickel silver clip- pingsshould bepacked and sold separately. Not tocon- tainmore than 10% of clean punchings under'/4 inch. Major NEW NICKEL SILVER CLIPPINGS AND SOLIDS Shall consist of new, clean nickel silver clippings, plate, rod and forgings, and other rolled shapes, freeof chrome or any other plating material. Must be sold on nickel contentspecificationssuch as10%-12%-15%- 18%-20%. Leaded nickel silver clippings should be packed and sold separately. A description as to its physical characteristics should be made in offering all nickel silver material. Malar NEW SEGREGATED NICKEL SILVER CLIPPINGS Shall consist of one specified nickel silver alloy. Not to contain more than 10% of clean punchings under '/4 inch. Malic OLD NICKEL SILVER Shall consist of yellow brass turnings, freeof alu- minum,manganese and composition turnings, not to contain over 3% of free iron, oil or other moisture; to be free of grindings and babbitts. To avoid dispute, to be sold subject to sample or analysis. MIXED UNSWEATED AUTO RADIATORS Shall consist of mixed automobile radiators, to be free of aluminum radiators, and iron-finned radiators. All radiators to be subject to deduction of actual iron. The tonnage specification should cover the gross weight of the radiators, unless otherwise specified. Pales ADMIRALTY BRASS CONDENSER TUBES Shall consist of clean sound Admiralty condenser tub- ingwhich may be plated or unplated, free of nickel alloy, aluminum alloy, and corroded material. Pallu ALUMINUM BRASS CONDENSER TUBES Shall consist of clean sound condenser tubing which may be plated or unplated, free of nickel alloy and cor- roded material. Palms MUNTZ METALTUBES Shall consist of clean sound Muntz metal tubing which may be plated or unplated, free of nickel alloy, alu- minumalloy, and corroded material. Parch MANGANESE BRONZE SOLIDS Shall have a copper content of not less than 55%, a lead content of not more than 1%, and shall be free of aluminum bronze and silicon bronze. Shall consist of old nickel silver sheet, pipe, rod, tubes, Tablet CLEAN ALUMINUM LITHOGRAPHIC SHEETS wire, screen, soldered or unsoldered. Must not be To consist of 1000 and/or 3000 series alloys, to be free trimmed seams alone, and must also be free of foreign of paper, plastic, excessively inked sheets, and any oth- substances,iron rimmed material and other metals. er contaminants. Minimum size of 3" (8 cm) in any direction. Melon BRASS PIPE Shall consist of brass pipe free of plated and soldered materials or pipes with cast brass connections. To be sound, clean pipes free of sediment and condenser tubes. Naggy NICKEL SILVER CASTINGS To be packed and sold separately. Tabloid NEW, CLEAN ALUMINUM LITHOGRAPHIC SHEETS To consist of 1000 and/or 3000 series alloys, uncoat- ed,unpainted, to be free of paper, plastic, ink, and any other contaminants. Minimum size of 3" (8 cm) in any direction. Guidelines for Nonferrous Scrap CODE ITEM Taboo MIXED LOW COPPER ALUMINUM CLIPPINGS AND SOLIDS Shall consist of new, clean, uncoated and unpainted low copper aluminum scrap of two or more alloys with a minimumthicknessof 0.015 inches(.38 mm)andto be free of 2000 and 7000 series, hair wire, wire screen, punchings less 1/2 inch (1.25 cm) diameter, dirt, and other non-metallic items. Grease and oil not to total more than 1%. Variations to this specification should be agreed upon prior to shipment between the buyerand seller. Taint/ CLEAN MIXED OLD ALLOY SHEET ALUMINUM Tabor Shall consist of clean old alloy aluminum sheet of two or more alloys, free of foil, venetian blinds, castings, hair wire, screen wire, food or beverage containers, radiator shells, airplane sheet, bottle caps, plastic, dirt, and other non-metallic items. Oil and grease not to total more than 1%. Up to 10% Tale permitted. Take NEW ALUMINUM CAN STOCK Shall consist of new low copper aluminum can stock and clippings, clean, lithographed or not lithographed, and coated with clear lacquer but free of lids with seal- ers,iron, dirt and other foreign contamination. Oil not to exceed 1%. INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. CODE ITEM Taldon other plastic, glass, wood, dirt, grease, trash, and other foreign substances. Any free lead is basis for rejection. Any and all aluminum items, other than used beverage cans, are not acceptable. Items not covered in the specifications, including moisture, and any variations to this specification should be agreed upon prior to shipment between the seller and buyer. BALED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a minimum density of 14 pounds per cubic foot (225 kg/m3), and a maximum density of 17 pounds per cubic foot (273 kg/m3) for unflattened UBC and 22 pounds per cubic foot (353 kg/m3) for flattened UBC. Size: Minimum 30 cubic feet (.85 m3), with bale range dimensions of 24" to 40" (61 to 132 cm) by 30" to 52" (76 to 132 cm) by 40" to 84"(102 to 213 cm). The only acceptable tying method shall be as follows: four to six 5/8" (1.6 cm) x .020" (5 mm) steel bands, or six to ten #13 gauge steel wires (aluminum bands or wires are acceptable in equivalent strength and number). Use of skids and/or support sheets of any material is not acceptable. Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and other plastic, glass, wood, dirt, grease, trash, and other foreign substances. Any free lead is basis for rejection. Any and all aluminum items, other than used beverage cans, are not acceptable. Variations to this specifica- tionshould be agreed upon prior to shipment between the buyerand seller. Talc POST CONSUMER ALUMINUM CAN SCRAP Shall consist of old aluminum food and/or beverage cans. The material is to be free of other scrap metals, foil, tin cans, plastic bottles, paper, glass, and other non-metallic Taldork items. Variations to this specification should be agreed upon prior to shipment between the buyer and seller. Talcred SHREDDED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a density of 12 to 17 pounds per cubic foot (193 to 273 kg/m3). Material should contain maximum 5% fines less than 4 mesh (U.S. standard screen size) (6.35 mm). Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and other plastics, glass, wood, dirt, grease, trash, and oth- erforeign substances. Any free lead is basis for rejec- tion.Any and all aluminum items, other than used beverage cans, are not acceptable. Variations to this specification should be agreed upon prior to shipment between the seller and buyer. Taldack DENSIFIED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a biscuit density of 35 to 50 pounds per cubic foot (562 to 802 kg/m3). Each biscuit not to exceed 60 pounds (27.2 kg). Nominal biscuit size range from l0"to 13"x101/4"(25.4x33x26cm)to 20"x 61/4" x 9" (50.8 x 15.9 x 22.9 cm). Shall have banding slots in both directions to facilitate bundle banding. All biscuits comprising a bundle must be of uniform size. Size: Bundle range dimensions acceptable are 41" to 44" x 51" (104 to 112 cm) to 54" x 54" (137 x 137 cm) to 56" (142 cm) high. The only acceptable tying method shall be as follows: Using minimum 5/8" (1.6 cm) wide by .020" (.05 cm) thick steel straps, the bundles are to be banded with one vertical band per row and a mini- mum oftwo firth (horizontal) bands per bundle. Use of skids and/or support sheets of any material is not acceptable. Must be magnetically separated material and free of steel, lead, bottle caps, plastic cans and BRIQUETUED ALUMINUM USED BEVERAGE CAN (UBC) SCRAP Shall have a briquette density of 50 pounds per cubic foot (800 kg/m3) minimum. Nominal briquette size shall range from 12" to 24" (30.5 x 61 cm) x 12" to 24" (30.5 x 61 cm) in uniform profile with a variable length of 8" (20.3 cm) minimum and 48" (122 cm) maximum. Briquettes shall be bundled or stacked on skids and secured with a minimum of one vertical band per row and a minimum of one girth band per horizontal layer. Briquettes not to overhang pallet. Total package height shall be 48 (122 cm) maximum. Banding shall be at least 5/8" (1.6 cm) wide by .020" (5 mm) thick steel strapping or equivalent strength. The weight of any bundle shall not exceed 4,000 pounds (1.814 mt).Mate- rialmust be magnetically separated and free of steel, plastic, glass, dirt and all other foreign substances. Any and all aluminum items other than UBC are unaccept- able.Any free lead is basis for rejection. Items not cov- ered inthe specification, including moisture, and any variations to this specification should be agreed upon prior to shipment between the buyer and seller. Tale PAINTED SIDING Shall consist of clean, low copper aluminum siding scrap, painted one or two sides, free of plastic coating, iron, dirt, corrosion, fiber, foam, or fiberglass backing or other non-metallic items. Talk ALUMINUM COPPER RADIATORS Shall consist of clean aluminum and copper radiators, and/or aluminum fins on copper tubing, free of brass tubing, iron and other foreign contamination. Tall E.C. ALUMINUM NODULES Shall consist of clean E.C. aluminum, chopped or shred SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM ded, free of screening, hair-wire, iron, copper, insulation and other non-metallic items. Must be free of minus 20 mesh material. Must contain 99.45% aluminum content. Tally ALL ALUMINUM RADIATORS FROM AUTOMOBILES Shall consist of clean aluminum radiators and/or con- densers.Should befree ofall other types of radiators. All contaminants including iron, plastic, and foam not to exceed 1% of weight. Any deviation to this specifica- tion,including oxidation and aluminum content, to be negotiated between buyer and seller. Talon NEW PURE ALUMINUM WIRE AND CABLE Shall consist of new, clean, unalloyed aluminum wire or cable free from hair wire, ACSR, wire screen, iron, insu- lationand other non-metallic items. Tann NEW MIXED ALUMINUM WIRE AND CABLE Shall consist of new, clean, unalloyed aluminum wire or cable which may contain up to 10% 6000 series wire and cable free from hair wire, wire screen, iron, insula- tionand other non-metallic items. Tarry A CLEAN ALUMINUM PISTONS Shall consist of clean aluminum pistons to befree from struts, bushings, shafts, iron rings and non-metallic items. Oil and grease not to exceed 2%. Tarry B CLEAN ALUMINUM PISTONS WITH STRUTS Shall consist of clean whole aluminum pistons with struts. Material is to be free from bushings, shafts, iron and non- metallicitems .Oil and grease not to exceed 2%. Tarry C IRONY ALUMINUM PISTONS Shall consist of aluminum pistons with non-aluminum attachments to be sold on a recovery basis or by spe- cialarrangement between buyer and seller. Tassel OLD MIXED ALUMINUM WIRE AND CABLE Guidelines for Nonferrous Scrap CODE ITEM Tutu ALUMINUM EXTRUSION DEALER GRADE Shall consist of old extruded aluminum of one alloy, typically alloy 6063, 6061, or 7075. Material must befree of iron, thermo break, saw chips, zinc corners, dirt, paper, cardboard, and other foreign contamination. Percentages of paint or other alloys to be agreed upon by buyer and seller. Teens SEGREGATED ALUMINUM BORINGS AND TURNINGS Shall consist of aluminum borings and turnings of one specified alloy. Material should be free of oxidation, dirt, free iron, stainless steel, magnesium, oil, flamma- bleliquids, moisture and other non-metallic items. Fines should not exceed 3% through a 20 mesh (U.S. standard) screen. Telic MIXED ALUMINUM BORINGS AND TURNINGS Shall consist of clean, uncorroded aluminum borings and turnings of two or more alloys and subject to deductions for fines in excess of 3% through a 20 mesh screen and dirt, free iron, oil, moisture and all other non-metallic items. Material containing iron in excess of 10% and/or free magnesium or stainless steel or containing highly flammable cutting com- poundswill not constitute good delivery. To avoid dis- pute, material should be sold on basis of definite maximum zinc, tin and magnesium content. Tense MIXED ALUMINUM CASTINGS Shall consist of all clean aluminum castings which may contain auto and airplane castings but no ingots, and to be free of iron, brass, dirt and other non-metallic items. Oil and grease not to total more than 2%. Tepid AIRCRAFT SHEET ALUMINUM Should be sold on recovery basis or by special arrangements with purchaser. Shall consist of old, unalloyed aluminum wire and cable Terse which may contain up to 10% 6000 series wire and cable with not over 1% free oxide or dirt and free from hair wire, wire screen, iron, insulation and other non- metallicitems. Taste OLD PURE ALUMINUM WIRE AND CABLE Shall consist of old, unalloyed aluminum wire and cable containing not over 1% free oxide or dirt and free from Tesla hair wire, wire screen, iron, insulation and other non- metallicitems. Tata NEW PRODUCTION ALUMINUM EXTRUSIONS Shall consist of one alloy (typically 6063). Material may contain "butt ends" from the extrusion process but must be free of any foreign contamination. Anodized material is acceptable. Painted material or alloys other than 6063 must be agreed upon by buyer and seller. Toto ALUMINUM EXTRUSIONS "10/10" Material to consist of new production and old/used 6063 extrusions that may contain up to (but not exceed)10 percent painted extrusions and 10 percent 6061 alloy extrusions. Must not contain other alloys of aluminum. Material should be free of zinc corners, iron attachments, felt, plastic, paper, cardboard, thermo break, and dirt and other contaminants. NEW ALUMINUM FOIL Shall consist of clean, new, pure, uncoated 1000 and/or 3000 and/or 8000 series alloy aluminum foil, free from anodized foil, radar foil and chaff, paper, plastics, or any other non-metallic items. Hydraulically briquet- tedmaterial and other alloys by agreement between buyer and seller. POST CONSUMERALUMINUM FOIL Shall consist of baled old household aluminum foil and formed foil containers of uncoated 1000, 3000 and 8000 series aluminum alloy. Material may be anodized and contain a maximum of 5% organic residue. Materi- almust befree from radar chaff foil, chemically etched foil, laminated foils, iron, paper, plastic and other non- metalliccontaminants. Tetra NEW COATEDALUMINUM FOIL Shall consist of new aluminum foil coated or laminated with ink, lacquers, paper, or plastic. Material shall be clean, dry, free of loose plastic, PVC and other non- metallicitems. This foil is sold on a metal content basis or bysample as agreed between buyerand seller. Thigh ALUMINUM GRINDINGS Should be sold on recovery basis or by special arrangements with purchaser. Guidelines for Nonferrous Scrap CODE ITEM Thirl ALUMINUM DROSSES, SPATTERS, SPILLINGS, SKIMMINGS AND SWEEPINGS Should be sold on recovery basis or by special arrangements with purchaser. Throb SWEATED ALUMINUM Shall consist of aluminum scrap which has been sweat- ed ormelted into a form or shape such as an ingot, sow or slab for convenience in shipping; to be free from corrosion, dross or any non-aluminum inclusions. Should be sold subject to sample or analysis. Tooth SEGREGATED NEW ALUMINUM ALLOY CLIPPINGS AND SOLIDS Shall consist of new, clean, uncoated and unpainted aluminum scrap of one specified aluminum al loy with a minimum thickness of .015" (.38 mm) and to be free of hair wire, wire screen, dirt and other non-metallic items. Oil and grease not to total more than 1%. Also free from punchings less than 1/2" (1.27 cm) in size. Tough MIXED NEW ALUMINUM ALLOY CLIPPINGS AND SOLIDS Shall consist of new, clean, uncoated and unpainted aluminum scrap of two or more alloys with a minimum thickness of .015" (.38 mm) and to be free of hair wire, wire screen, dirt and other non-metallic items. Oil and grease not to total more than 1%. Also free from punchings less than 1/2" (1.27 cm) in size. INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. CODE ITEM excessively oxidized material, air bag canisters, or any sealed or pressurized items. Any variation to be sold by special arrangement between buyer and seller. Tweak FRAGMENTIZER ALUMINUM SCRAP (from Automobile Shredders) Derived from either mechanical or hand separation, the material must be dry and not contain more than 4% maximum free zinc, l%maximum free magnesium, and 1.5% maximum of analytical iron. Not to contain more than a total 5%maximum ofnon-metallics, of which no more than 1% shall be rubber and plastics. To be free of excessively oxidized material, air bag canisters, or any sealed or pressurized items. Any variation to be sold by special arrangement between buyer and seller. Twire BURNT FRAGMENTIZER ALUMINUM SCRAP (from Automobile Shredders) Incinerated or burned material must be dry and not contain more than X% (% to be agreed upon by buyer and seller) ash from incineration, 4%maximum free zinc, l%maximum free magnesium, and 1.5% maxi- mum ofanalytical iron. Not to contain more than a total 5%maximum ofnon-metallics, of which no more than 1% shall be rubber and plastics. To be free of excessively oxidized material, air bag canisters, or any sealed pressurized items. Any variation to be sold by special arrangement between buyer and seller. Tread SEGREGATED NEW ALUMINUM CASTINGS, FORGINGS AND EXTRUSIONS Shall consist of new, clean, uncoated aluminum cast- ings, forgings, and extrusions of one specified alloy only and to be free from sawings, stainless steel, zinc, Saves iron, dirt, oil, grease and other non-metallic items. Troma Aluminum Auto or Truck Wheels Shall consist of clean, single-piece, unplated aluminum wheels of a single specified alloy, free of all inserts, steel, wheel weights, valve stems, tires, grease and oil and other non-metallic items. Variations to this specifi- cationshould beagreed upon prior to shipment between the buyer and seller. Trump ALUMINUM AUTO CASTINGS OLD ZINC DIE CAST SCRAP Shall consist of miscellaneous old zinc base die cast- ings,with orwithout iron and other foreign attach- ments.Must be free of borings, turnings, dross pieces, chunks, melted pieces and skimmings. All unmeltables, dirt, foreign attachments, and volatile substances (such as rubber, cork, plastic, grease, etc.) are deductible. Material containing in excess of 30% iron will not constitute good delivery. Scabs NEW ZINC DIE CAST SCRAP Shall consist of new or unused, clean, zinc base die castings. Castings to be unplated, unpainted, and free from corrosion. Shall consist of all clean automobile aluminum castings of sufficient size to be readily identified and to be free from iron, dirt, brass, bushings, and non-metallic items. Oil and grease not to total more than 2%. Scoot Twang INSULATED ALUMINUM WIRE SCRAP Shall consist of aluminum wire scrap with various types of insulation. To be sold on a sample or recovery basis, subject to arrangement between buyer and seller. Twist ALUMINUM AIRPLANE CASTINGS Shall consist of clean aluminum castings from airplanes and to be free from iron, dirt, brass, bushings, and non- metallicitems. Oil and grease not to total more than 2%. Twitch FLOATED FRAGMENTIZER ALUMINUM SCRAP (from Automobile Shredders) Derived from wet ordry media separation device,the material must be dry and not contain more than 1% maximum free zinc, l%maximum free magnesium, and 1% maximum of analytical iron. Not to contain more than a total 2%maximum ofnon-metallics, of which no more thanl%shall be rubberand plastics.To be free of ZINC DIE CAST AUTOMOTIVE GRILLES Shall consist of clean, old or used zinc base die cast automotive grilles, free from soldered material. All for- eignattachments and extraneous materials are deductible. Scope NEW PLATED ZINC DIE CAST SCRAP Shall consist of new or unused clean, plated zinc base die castings, free from corrosion. Score OLD SCRAP ZINC Shall consist of clean dry scrap zinc, such as sheets, jar lids, clean unalloyed castings and anti-corrosion plates. Borings and turnings are not acceptable. Material must not be excessively corroded or oxidized. All foreign attachments and extraneous materials are deductible. Screen NEW ZINC CLIPPINGS Shall consist of any new pure zinc sheets or stampings free from corrosion. To contain no foreign material or SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM CODE ITEM attachments. Printers zinc, such as engravers zinc, lith- ographsheets and addressograph plates subject to spe- cialarrangements. Printers zinc to be free of routings. Wafer MAGNESIUM CLIPS Scribe CRUSHED CLEAN SORTED FRAGMENTIZERS DIE CAST SCRAP, AS PRODUCED FROM AUTOMOBILE FRAGMENTIZERS To be clean, free of dirt, oil, glass, rubber, and trash. To contain a maximum of 5% unmeltables such as free iron, copper, aluminum and other metals. Scroll UNSORTED ZINC DIE CAST SCRAP Produced from automobile fragmentizers. Material to contain about 55%zinc-bearing scrap. Other nonfer- rousmetals such as aluminum, stainless steel, red met- al,etc., to beabout 40%. Insulated copper wire about 1%. Trash, dirt, glass, rubber, oil, iron, not to exceed 5%.Anyvariationsto besold byspecial arrangement between buyer and seller. Scrub HOT DIP GALVANIZERS SLAB ZINC DROSS (Batch Process) Shall consist only of galvanizers unsweated zinc dross in slab form from hot dip galvanizing (Batch Process) with a minimum zinc content of 92% and shall be free of skimmings and tramp iron. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. Slabs shall not weigh over 100 pounds each. Heavier pieces acceptable upon mutual agreement between buyer and seller. Material from continuous galvanizing operation is not acceptable. Blocks are acceptable upon mutual agreement. Scull ZINC DIE CAST SLABS OR PIGS Guidelines for Nonferrous Scrap Shall consist of clean magnesium clips in crucible size, free of copper, aluminum, and zinc flashings and exces- siveoil and grease. To be free of all foreign attachments. Walnut MAGNESIUM SCRAP Shall consist of magnesium castings, magnesium engine blocks and transmission casings, bomber and car wheels, extrusions, and sheet. Material to be free from brass and copper inserts and all foreign attach- ments. To be free of anodes, hollow castings and explo- sives. Percentages of and penalties for dirt, oil, grease, and iron to be subject to agreement between buyer and seller. Excessively large pieces to be negotiated between buyer and seller. Wine MAGNESIUM ENGRAVER PLATES To be free of copper, aluminum, zinc, and electrotype plates. To be clean and free of all foreign attachments. Magnesium plates shipped loose by agreement between buyer and seller. Wood MAGNESIUM DOCKBOARDS Shall consist of clean magnesium dockboard cut or broken to size agreed upon by buyer and seller. To be free of all foreign attachments. World MAGNESIUM TURNINGS It is recommended that these materials be sold by special arrangement between buyerand seller. Shall consist of melted zinc base die cast materials, in smooth clean solid slabs or pigs. Material to be free from drosses and to contain a minimum zinccontent of 90%. To contain a maximum of 0.1% nickel and Racks maximum of 1% lead. Blocks are acceptable upon mutual agreement. Seal CONTINUOUS LINE GALVANIZING SLAB ZINC TOP DROSS Shall consist of unsweated zinc dross removed from the top of a continuous line galvanizing bath, in slab form not weighing in excess of 100 pounds each, with a minimum zinc content of 90%. Heavier pieces accept- ableupon mutual agreement between buyerand sell- er.Shall befree ofskimmings. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. Seam CONTINUOUS LINE GALVANIZING SLAB ZINC BOTTOM DROSS Shall consist of unsweated zinc dross removed from the bottom of a continuous line galvanizing bath, in slab form not weighing in excess of 100 pounds each, with a minimum zinc content of 92%. Heavier pieces acceptable upon mutual agreement between buyer and seller. Shall be free of skimmings. Broken pieces under 2" in diameter shall not exceed 10% of the weight of each shipment. Shelf PRIME ZINC DIE CAST DROSS Shall consist of metal skimmed from the top of pot of molten zinc die cast metal. Must be unsweated, unfluxed, shiny, smooth, metallic and free from corro- sion oroxidation. Should be poured in molds or in small mounds weighing not over 75 pounds each. Zinc content shall be minimum of 85%. SCRAP LEAD-SOFT Shall consist of clean soft scrap lead, free of other materials such as drosses, battery plates, lead covered cable, hard lead, collapsible tubes, foil, type metals, alu- minum,zinc, iron and brass fittings, dirty chemical lead and radioactive materials. Review packaging specifica- tionsand regulatory status pertaining to shipping with buyer priortosale. Radio MIXED HARD/SOFT SCRAP LEAD Shall consist of clean lead solids, free of other materi- als,such asdrosses, battery plates, lead covered cable, collapsible tubes, type metals, aluminum zinc, ironand brass fittings, dirty chemical lead and radioactive mate- rials. Review packaging specifications and regulatory status pertaining to shipping with buyer priortosale. Rails LEAD BATTERY PLATES Specify whether automotive, industrial or mixed. Also whether they are groups or loose. The only other metallic that might be included could be lead connec- tors. To be free of non-metallics, i.e., plastic or rubber, with the exception that separators may be included. Material to be dry. Maybe bought on an assay basis or a flat price. Submarine plates subject to negotiation. Review packaging specifications and regulatory status pertaining to shipping with buyer priortosale. Rains SCRAP DRAINED/DRY WHOLE INTACT LEAD To be free of any liquid. Cases to be either plastic or rubber and be complete including caps. Non-lead Guidelines for Nonferrous Scrap CODE ITEM INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. CODE ITEM (nicad, ni-fe, carbonaire, etc.) not acceptable. Industrial, steel cased, aircraft (aluminum cased) and partial, cracked or broken batteries and batteries without caps subject to special agreement. Review packaging speci- ficationsand regulatory status pertaining to shipping with buyerpriortosale. Aroma Rakes BATTERY LUGS To be free of scrap lead, wheel weights, battery plates, rubber and/or plastic case material and other foreign material. A minimum of 97% metallic content is required. Review packaging specifications and regulato- rystatus pertaining to shipping with buyer prior to sale. Burly Relay LEAD COVERED COPPER CABLE Free of armored covered cable, and foreign material. Rents LEAD DROSS Should be clean and reasonably free of other materials such as iron, dirt, harmful chemicals or other metals. To be free of radioactive materials, aluminum and zinc. May be bought on an assay basis or as agreed to by buyer and seller. Other metals present such as antimo- ny,tin, etc., to be accounted for as agreed between buyer and seller. Material to be readily dumped from drums. An extra charge may be assessed if material has to be mechanically removed. Review packaging specification and regulatory status pertaining toship- pingwith buyer prior to sale. Rink SCRAP WET WHOLE INTACT LEAD BATTERIES Consisting of SLI (starting, lighting & ignition), automo- tive,truck, 8-D and commercial golf cart and marine- typebatteries. Cases to be either plastic or rubber and to be complete. Non-lead (i.e., ni-cad, ni-fe, carbonaire, etc.) not acceptable. Other types i.e. aircraft (alu- minum)gel-cel,Lawnmower, etc., and partial, cracked or broken batteries or batteries without caps and the amount of liquid content and any variations to the specification subject to special agreement. Review packaging specifications and regulatory status pertain- ing toshipping with buyer prior to sale. Rono SCRAP INDUSTRIAL INTACT LEAD CELLS Consisting of plates enclosed by some form of com- pleteplastic case. Partial, cracked or broken cells, cells without caps and the amount of liquid content and any variations to the specification subject to special agree- ment. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. Roper SCRAP WHOLE INTACT INDUSTRIAL LEAD BATTERIES Consisting of bus, diesel, locomotive, telephone and/or steel cased batteries. Submarine batteries subject to negotiation. Partial, cracked, broken batteries orbat- terieswithout caps and the amount of liquid content and anyvariationstothespecificationsubjecttospe- cialagreement. Review packaging specifications and regulatory status pertaining to shipping with buyer pri- ortosale. Ropes WHEEL WEIGHTS To consist of lead tire balances with or without iron clips. Not to include scrap lead, lugs or plates unless specifically agreed to. To be free of foreign material. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. NEW NICKEL SCRAP Shall consist of clean new sheet, plate, bar, tube, and any other wrought nickel scrap solids. Nickel minimum 99%; Cobalt maximum 0.25%; Copper maximum 0.50%. Free of castings, as well as any foreign attach- ments orother contamination. OLD NICKEL SCRAP Shall consist of old and/or new sheet, plate, bar, tube, and any other wrought nickel scrap solids. Material to contain a minimum of 98% nickel; Copper maximum 0.50%. This grade to be free of castings, soldered, brazed, sweated, or painted material, other metallic coating, foreign attach- ments, orany other contamination. Dandy NEW CUPRO NICKEL CLIPS AND SOLIDS Shall consist of clean, new, segregated (normally accepted analysis grades) either 70/30, 80/20, or 90/10 cupro nickel tube, pipe, sheet, plate, or other wrought solid forms. Must be free of foreign attach- ments orany other contamination. Daunt CUPRO NICKEL SOLIDS Shall consist of old, and/or new, segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nickel tube, pipe, sheet, plate, or other wrought solid forms. Maximum 2% sediment allowable. Any other forms of cupro nickel solids such as castings, gates, risers, spills, etc., packaged separately, mayor may not be included, only upon agreement between buyer and seller. Must be free of foreign attachments and all other contamination. Other particulars con- cerning physical description, analysis and packaging to be agreed upon between buyer and seller. Decoy CURPO NICKEL SPINNINGS, TURNINGS, BORINGS Shall consist of clean, segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nick- el spinnings,turnings, orborings. Particulars concern- ing physical description, analysis, and packaging, to be agreed upon between buyer and seller. Delta SOLDERED CUPRO NICKEL SOLIDS Shall consist of segregated (normally accepted analysis grades) either 70/30, 80/20, 90/10 cupro nickel solids, soldered, brazed, or sweated material. Must be free of trimmed seams and edges and all other contamination. Depth MISCELLANEOUS NICKEL-COPPER AND NICKEL-COPPER IRON Shall consist of miscellaneous scrap in which the basic elements, by weight, are nickel and copper, such as copper nickel peelings, plating racks, and hangers, and all nickel and copper in attached or combined form. In all cases, miscellaneous nickel copperscrap should be sold by description and analysis. Hitch NEW R-MONEL CLIPPINGS AND SOLIDS Shall consist of clean, new, R-Monet sheet, plate, bar, rod, tube, pipe, or any other wrought scrap. Must be free of any foreign attachments or all other contami- nation. SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM House NEW MIXED MONEL SOLIDS AND CLIPPINGS Shall consist of new, clean R and K-Monet solids and clippings. Free of cast material, foreign attachments and all other contamination. Guidelines for Nonferrous Scrap CODE ITEM to agreement between buyer and seller. No excessive steel attachments such as gear reducers, iron bases, and pumps, or loose free iron allowed. Specification not to include sealed units or cast iron compressors. Ideal OLD MONEL SHEET AND SOLIDS Shelmo Shall consist of clean R and K-Monet solids such as sheet, plate, pipe, rods, forgings, screen and wire cloth. Must be free of soldered, brazed, welded, or sweated material, cast material, foreign attachments, and all other contamination. Indian K-MONEL SOLIDS Shall consist of clean K-Monet solids. Junto SOLDERED MONEL SHEET AND SOLIDS Shall consist of soldered and/or brazed miscellaneous grades of Monet alloys in either wrought or cast form. Must be free of trimmed seams and edges, non-metallic filling, foreign attachments, and all other contamination. Particulars concerning physical description, assay, and packaging to be agreed upon between buyer and seller. Lemon MONEL CASTINGS Shall consist of various types of clean Monet castings, assaying minimum 60%nickel. Must be free of foreign attachments or any other contamination. Lemur MONEL TURNINGS Shall consist of mixed Monet turnings and borings con- taining a minimumof 60%nickel content,onadrybasis. Pekoe 200 SERIES STAINLESS STEEL SCRAP SOLIDS Shall consist of all types of clean AISI Series Stainless Steel Scrap Solids, which contain a maximum of .5% cop- per,free offoreign attachments and other contamination. Sabot STAINLESS STEEL SCRAP Shall consist of clean 18-8 type stainless steel clips and solids containing a minimum 7% nickel,l6% chrome, and have a maximum of .50% molybdenum, .50% copper, .045% phosphorous, and.03%sulfur, and oth- erwisefree ofharmful contaminants. Particulars con- cerning physical description, grading, additional analysis, and preparation to be agreed upon between buyerand seller. Ultra STAINLESS STEEL TURNINGS Shall consist of clean 18-8 type stainless steel turnings containing a minimum 7%nickel and 16% chrome, and to be free of nonferrous metals, nonmetallics, exces- siveiron, oil and other contaminants. Particulars con- cerning physical description, assay, and packaging to be agreed upon between buyerand seller. Vaunt EDISON BATTERIES Nickel-iron batteries to be sold free of crates, copper terminal connectors, and excess liquid. Must be free of nickel cadmium batteries. Elmo MIXED ELECTRIC MOTORS SHREDDED ELECTRIC MOTORS (also called "shredder pickings" or "meatballs") Shall consist of mixed copper-bearing material from fer- rousshredding, comprised of motors without cases. May contain aluminum-wound material and insulated copper harness wire, subject to agreement between buyer and seller. Trace percentages of other contaminants and fines may be present. No free iron or sealed units. Zebra (High Density) Shall consist ofhigh-density nonferrous metals pro- duced by media separation technology containing brass, copper, zinc, nonmagnetic stainless steel, and copper wire. Material to be dry and free from excess oxidation. The percentage and types of metals other than these, as well as the percentage and types ofnon- metalliccontamination, are to be agreed upon between the buyerand seller. Zeppelin (Light Density) Shall consist oflight-density nonferrous metals pro- duced by media separation technology and contain thin-gauge aluminum and magnesium. Material to be dry and free from excess oxidation. The percentage and types of metals other than aluminum and magne- sium, aswell asthe percentage and types ofnonmetal- liccontamination, are to be agreed upon between the buyer and seller. Zorba FRAGMENTIZER NONFERROUS MIXED METAL SCRAP (from Automobile Shredders) Shall be made up of a combination of the nonferrous metals: aluminum, copper, lead, magnesium, stainless steel, nickel, tin, and zinc, in elemental or alloyed (solid) form. The percentage of each of these metals within the nonferrous concentrate may be subject to agree- ment between buyerand seller, mayvaryfrom shred- der toshredder and may, in some cases, be zero for a particular metal. Shall be obtained by eddy current, air separation, flotation, screening, other segregation technique(s) or a combination thereof. Shall have passed one or more magnets to reduce or eliminate free iron and/or large iron attachments. Shall be free of radioactive material, dross or ash. Maybe screened to permit description by specific size ranges. May con- tainhigh density non-metallics. Items of exclusion, inclusion or limitation not set out in the above specifi- cations,such asmoisture and free iron and/or attach- ments orthe presence or absence of other metals, are subject to agreement between buyer and seller. Mate- rial to be bought/sold under this guideline shall be identified as Zorba with a number to follow indicating the estimated percentage nonferrous metal content of the material (e.g., Zorba 90-means the material con- tainsapproximately 90% nonferrous metal content). Shall consist of whole electric motors and/or disman- tledelectric motor parts that are primarily copper- wound.May contain aluminum-wound material, subject Guidelines for Nonferrous Scrap Ranch BLOCK TIN Block tin must assay minimum of 98% tin, and to be free of liquids, solder, and brass connections, pewter, pumps, pot pieces, and dirt. Ranks PEWTER Shall consist of tableware and soda-fountain boxes but should contain a minimum of 84% tin. Siphon tops to be accounted for separately. Material must be free of brass, zinc, and other foreign metals. Raves HIGH TIN BASE BABBITT Shall contain a minimum of 78% tin and be free of brassy or zincy metals. Roses MIXED COMMON BABBITT Shall consist of lead base bearing metal containing not less than 8% tin, free from Allens metal, ornamental, antimonial and type metal. Must be free from all zinc and excessive copper in the alloy. Identification Checklist for Precious Metals This Identification Check List for Precious Metals sets up a general basis for identifying types and grades of precious met- alsscrap bythe scrap processor who will be familiar both to the precious metals refiner and to the plants generating pre- ciousmetals scrap. By checking this identification list, the scrap processor gives the refiner a fairly accurate conception of the material the processor has on hand and offers a basis for the refiner to quote an estimated price forthe material. Due to the high values and the constantly changing character of precious metal scrap, it is often the practice in the industry to require a sample to be submitted before giving refining schedules. I. Scrap Sources REFINED SILVER METAL - 99.9 MIN. PERCENT Silver-bearing materials: Anodes Assembl ies-Electrical Batteries Silver/Copper Plated Silver/Cadmium Silver/Zinc Silver/Magnesium Blanking Scrap-Punchings Brazing Alloys Brushes-Electric Motors Bullion Chemical Salts Clad Bi-Metal Parts Coin Silver Contacts Dental Amalgam Films Industrial X-Ray Medical X-Ray INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Lithographic Photographic Negatives Filters-Plating Flake-From Hypo Solution Recovery Systems Hooks-Plating-Nodules Jewelry Sweeps Paints-Paste Paper-Reproduction Plated Parts-Electrical-Electronic Plated Serving Pieces Plated Utensils Plated Wire Powders-Granulated Punchouts Relays-Electrical Resins Silver Lined Bearings-Diesel Locomotives and Aircraft Sludges-Plating and Precipitates Solutions-Plating Sterling Silver Tin Lead Alloys-Contaminated Turnings Wave Guides Wiping Rags REFINED GOLD METAL - 99.5 MIN. PERCENT REFINED GOLD SPONGE - 99.5 MIN. PERCENT Gold-bearing materials: Brazing Alloys Clad Metal Parts Contacts Dental Alloys Dental Scrap Dental Sweeps and Grindings Diodes Filled Scrap Filters-Plating Flakes Fleshings Foil Hooks-Plating-Nodules Jewelry Scrap Jewelry Sweeps and Grindings Paints and Paste Peelings Placer Gold Plated Parts-Electrical Plated Wire Powders Printed Circuit Boards Printed Circuit Boards with Components Punchouts Resins-Plating Salts-Chemical Sludges-Plating Solutions Sponge Tin Lead Alloys-Contaminated Transistors Wiping Rags Wire SCRAP SPECIFICATIONS CIRCULAR 2007 REFINED PALLADIUM METAL-99.9 MIN. PERCENT REFINED PALLADIUM SPONGE-99.9 MIN. Palladium-bearing materials: Catalysts Chemical Salts Clad Materials Contact Points Dental Alloys Dental Scraps Dental Sweeps Jewelry Scrap (Sweeps) Paste Plated Parts Powders Relays-Electrical Sludges Solutions Wire REFINED PLATINUM METAL-99.9 MIN. PERCENT REFINED PALLADIUM SPONGE-99.9 MIN. PERCENT Platinum-bearing materials: Catalysts Chemicals Clad Materials Contacts Dental Alloys Dental Scrap Dental Sweeps, Grindings Jewelry Scrap Jewelry Sweeps Laboratory Ware Magneto Points Powders and Paste Solutions-Plating Spark Plugs-Aircraft Thermocouple Wire Scrap containing combinations of precious metals (gold, silver, platinum and palladium): Assembl ies-Components Bullion Carbon Catalysts Chemicals Chips Drillings Electronic Scrap High Temperature Resistant Alloys Paints Paste Powders Relays-Electrical Resins Ribbons Rings Salts Solutions Sweeps Telephone Switching Scrap Thick Film Wire I I. SCRAP CATEGORIES A. Solution 1. Acid 2. Basic 3. Matrix if known 6. Resin C. Sludges D. Burnable Material 1. Carbon 2. Filters 3. Film 4. Papers 5. Unprepared Sweeps 6. Others E. Sweeps (Prepared) F. Printed Circuit Board 1. Punch Outs 2. Non Assembled 3. Assembled G. Glass to Metal Tubes etc. 1. Solid Precious Metal Parts 2. Alloyed Metal Parts 3. Plated Metal Parts 4. Ceramics 5. Thick Film 6. Other... H. Metal Scrap I. Non-Magnetic 1. Impure Gold 2. Impure Silver 3. Copper Base 4. Aluminum Base 5. Brass Base 6. Bronze Base 7. Molybdenum Base 8. Beryllium Base 9. Lead Base 10. Tin Base 11. Other.... II. Magnetic 1. Kovar Base 2. Stainless Steel Base 3. Iron Base 4. Nickel Base 5. Other.... I. Catalyst 1. Carbon 2. Alumina 3. Rare Earth 4. Silica 5. Other.... Guidelines for Nonferrous Scrap INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Guidelines for Ferrous Scrap: FS-2007 CODE ITEM General Information a. Cleanness. All grades shall be free of dirt, nonferrous met- als, orforeign material of any kind, and excessive rust and cor- rosion.However, the terms "free of dirt, nonferrous metals, or foreign material of any kind" are not intended to preclude the accidental inclusion of negligible amounts where it can be shown that this amount is unavoidable in the customary preparation and handling of the particular grade involved. b. Off grade material. The inclusion in ashipment of apar- ticulargrade ofiron and steel scrap of a negligible amount of metallic material which exceeds to a minor extent the applica- blesize limitations, or which fails to a minor extent to meet the applicable requirements as to quality or kind of material, shall not change the classification of the shipment, provided it can be shown that the inclusion of such off-grade material is unavoidable in the customary preparation and handling of the grade involved. CODE ITEM 204 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include all automo- bile scrap properly prepared. 205 No. 2 heavy melting steel 3 feet x 18 inches. Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include automobile scrap, properly prepared; however, to be free of sheet iron or thin gauged material. 206 No. 2 heavy melting steel 5 feet x 18 inches. Wrought iron and steel scrap, black and galvanized, maximum size 60 x 18 inches. May include automobile scrap, properly prepared; however, to be free of sheet iron or thin gauged material. 207 c. Residual alloys. Wherever the term "free of alloys" is used in the classifications given herein, it shall mean that any alloys contained in the steel are residual and have not been added for the purpose of making an alloy steel. Steel scraps shall be considered free of alloys when the residual alloying elements do not exceed the following percentages: 207A Nickel .45% Molybdenum .10% Chromium .20% Manganese 1.65% The combined residuals other than manganese shall not exceed a total of 0.60 percent. d. Deviations. Any deviations from the general classifica- tions ofiron and steel scrap may be consummated by mutual agreement between buyerand seller. 200 No.1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging. 201 No.1 heavy melting steel 3 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 36 x 18 inches (charging box size) prepared in a manner to insure compact charging. 202 No.1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 18 inches (charging box size) prepared in a manner to insure compact charging. 203 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and galvanized,l/8 inch and over in thickness, charging box size to include material not suitable as No.1 heavy melting steel. Pre- pared in amanner toinsure compact charging. No.1 busheling. Clean steel scrap, not exceeding 12 inches in any dimensions, including new factory busheling (for exam- ple,sheet clippings, stampings, etc.). May not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet contain- ingover 0.5 percent silicon. New black sheet clippings. For direct charging, maximum size 8 feet by 18 inches, free of old automobile body and fender stock, metal coated, lined, vitreous enameled and electrical sheet containing over 0.5 percent silicon. Must lay reason- ablyflat incar. 208 No.1 bundles. New black steel sheet scrap, clippings or skeleton scrap, compressed or hand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot. (Hand bundles are tightly secured for handling with a magnet.) May include Stanley balls or mandrel wound bundles or skeleton reels, tightly secured. May include chemically detinned material. May not include old auto body or fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet contain- ingover 0.5 percent silicon. 209 No. 2 bundles. Old black and galvanized steel sheet scrap, hydraulical- lycompressed tocharging box size and weighing not less than 75 pounds per cubic foot. May not include tin orlead-coated material or vitreous enameled material. 210 Shredded scrap. Homogeneous iron and steel scrap, magnetically sepa- rated,originating from automobiles, unprepared No.1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 50 pounds per cubic foot. 211 Shredded scrap. Homogeneous iron and steel scrap magnetically sepa- rated,originating from automobiles, unprepared No.1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 70 pounds per cubic foot. SCRAP SPECIFICATIONS CIRCULAR 2007 Guidelines for ferrous Scrap CODE ITEM CODE ITEM 212 Shredded clippings. 223 Iron borings. Shredded 1000 series carbon steel clippings or sheets. Clean cast iron or malleable iron borings and drillings, Material should have an average density of 60 pounds free of steel turnings, scale, lumps or excessive oil. per cubic foot. 224 Auto slabs. 213 Steel can bundles. Clean automobile slabs, cut 3 feet x 18 inches and under. Steel can scrap compressed to charging box size and 225 Auto slabs. weighing not less than 75 pounds per cubic foot. Cans Clean automobile slabs cut 2 feet x 18 inches and under. maybe baled without removal of paper labels, but free , of other non-metallics. May include up to 5 gallon tin 226 Briquetted iron borings. coated containers. Analysis and density to consumer's specifications. 214 No. 3 bundles. 227 Briquetted steel turnings. Old sheet steel, compressed to charging box size and Analysis and density to consumer's specifications. weighing not less than 75 pounds per cubic foot. May include all coated ferrous scrap not suitable for inclu- 228 Mill scale. sion in No. 2 bundles. Dark colored, ranging from blue toblack, ferro-mag- neticiron oxide forming on the surface of steel articles 215 Incinerator bundles. during heating and working. Tin can scrap, compressed to charging box size and *The identical designations given for these two classifications weighing not less than 75 pounds per cubic foot. are in accordance with established industry practices in speci- Processedthrough arecognized garbage incinerator. fying t he materials desired. 216 Terne plate bundles. Electric Furnace Casting and Foundry Grades New terne plate sheet scrap, clippings or skeleton scrap, compressed or hand bundled, to charging box 229 Billet, bloom and forge crops. size, and weighing not less than 75 pounds per cubic Billet, bloom, axle, slab, heavy plate and heavy forge foot. (Hand bundles are tightly secured for handling crops, containing not over 0.05 percent phosphorus or with a magnet.) May include Stanley balls or mandrel sulphur and not over 0.5 percent silicon, free from wound bundles or skeleton reels, tightly secured. alloys. Dimensions not less than 2 inches in thickness, not over 18 inches in width, and not over 36 inches in 217 Bundled No.1 steel. length. Wrought iron and/or steel scrap 1/8 inch or over in thickness, compressed to charging box size and weigh- 230 Bar crops and plate scrap. ing not less than 75 pounds per cubic foot. Free of all Bar crops, plate scrap, forgings, bits, jars, and tool metal-coated material. joints, containing not over 0.05 percent phosphorus or sulphur, not over 0.5 percent silicon, free from alloys. 218 Bundled No. 2 steel. Dimensions not less than'/z inch in thickness, not over Wrought iron or steel scrap, black or galvanized,l/8 18 inches in width, and not over 36 inches in length. inch and over in thickness, compressed to charging box size and weighing not less than 75 pounds per 231 Plate and structural steel, 5 feet and under. cubic foot. Auto body and fender stock, burnt or hand Cut structural and plate scrap, 5 feet and under. Clean stripped, may constitute a maximum of 60 percent by open hearth steel plates, structural shapes, crop ends, weight. (This percent based on makeup of auto body, shearings, or broken steel tires. Dimensions not less chassis, driveshafts, and bumpers.) Free of all coated than'/4 inch thickness, not over 5 feet in length and 18 material, except as found on automobiles. inches in width. Phosphorus or sulphur not over 0.05 percent. 219 Machine shop turnings. Clean steel or wrought iron turnings, free of iron bor- 232 Plate and structural steel, 5 feet and under. ings, nonferrous metals in a free state, scale, or exces- Cut structural and plate scrap, 5 feet and under. Clean sive oil. May not include badly rusted or corroded open hearth steel plates, structural shapes, crop ends, stock. shearings, or broken steel tires. Dimensions not less than'/4 inch thickness, not over 5 feet in length and 24 220 Machine shop turnings and iron borings. inches in width. Phosphorus or sulphur not over 0.05 Same as machine shop turnings but including iron bor- percent. ings. 233 Cast steel. 221 Shoveling turnings. Steel castings not over 48 inches long or 18 inches Clean short steel or wrought iron turnings, drillings, or wide, and'/4 inch and over in thickness, containing not screw cuttings. May include any such material whether over 0.05 percent phosphorus or sulphur, free from resulting from crushing, raking, or other processes. alloys and attachments. May include heads, gates, and Free of springy, bushy, tangled or matted material, risers. lumps, iron borings, nonferrous metals in a free state, grindings, or excessive oil. 234 Punchings and plate scrap. Punchings orstampings, plate scrap, and barcrops 222 Shoveling turnings and iron borings. containing not over 0.05 percent phosphorous or sul- Same asshoveling turnings, but including iron borings. phur and not over 0.5 percent silicon, free from alloys. Guidelines for ferrous Scrap INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. CODE ITEM CODE ITEM All materials cut 12 inches and under, and with the taining not more than 0.05 percent phosphorus or sul- exception of punchings or stampings, at least 1/8 inch phur, and free of alloys. in thickness. Punchings or stampings under 6 inches in 247 Alloy free machine shop turnings. diameter may be anygauge. Clean steel turnings, free of iron borings or excessive 235 Electric furnace bundles. oil, containing not more than 0.05 percent phosphorus New black steel sheet scrap hydraulically compressed or sulphur, and free of alloys. May not include badly into bundles of size and weight as specified by con- rusted or corroded stock. sumer. 236 Cut structural and plate scrap, 3 feet and under. Clean open hearth steel plates, structural shapes, crop ends, shearings, or broken steel tires. Dimensions not less thanl/4 inch in thickness, not over3 feet in length and 18 inches in width. Phosphorus or sulphur not over 0.05 percent. 237 Cut structural and plate scrap, 2 feet and under. Same as cut structural and plate scrap, 3 feet and under, except for length. 238 Cut structural and plate scrap, l foot and under. Same as cut structural and plate scrap, 3 feet and under, except for length. 239 Silicon busheling. Clean silicon bearing steel scrap, not exceeding 12 inch- es inany dimension, including new factory busheling (for example, sheet clippings, stampings, etc.), having a silicon content of 0.05 percent to 5.0 percent. 240 Silicon Clippings. Clean steel scrap, including new factory busheling (for example, sheet clippings, stampings, etc.), may not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet containing minimum 1 percent silicon. 241 Chargeable ingots and ingot butts. Chargeable ingots and ingot butts for material to be suitable and acceptable to the consumer containing not over 0.05 percent phosphorus or sulphur and not over 0.05 percent silicon free of alloys. 242 Foundry steel, 2 feet and under. Steel scrap 1/8 inch and over in thickness, not over 2 feet in length or 18 inches in width. Individual pieces free from attachments. May not include nonferrous metals, cast or malleable iron, cable, vitreous enam- eled, ormetal coated material. 243 Foundry steel, l foot and under. Same specifications as 2-foot material, except for length. 244 Springs and crankshafts. Clean automotive springs and crankshafts, either new or used. 245 Alloy free turnings. Clean shoveling steel turnings free from lumps, tan- gled ormatted material, iron borings, or excessive oil containing not more than 0.05 percent phosphorus or sulphur, and free of al toys. 246 Alloy free short shoveling steel turnings. Clean shoveling steel turnings, free of lumps, tangled ormatted material, iron borings, or excessive oil, con- 248 Hard steel cut 30 inches and under. Automotive steel consisting of rear ends, crankshafts, driveshafts, front axles, springs, and gears prepared 30 inches and under. May not include miscellaneous small shoveling steel or any pieces too bulky for gray iron foundry use. 249 Chargeable slab crops. Chargeable slab crops for material to be suitable and acceptable to the consumer containing not over 0.05 percent phosphorus and 0.05 percent sulphurand not over 0.05 percent silicon and free of alloys. 250 Silicon bundles. Silicon sheet scrap, clippings or skeleton scrap, com- pressed orhand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot, hav- ing asilicon content of 0.50 percent to 5.0 percent. 251 Heavy turnings. Short, heavy steel turnings, containing not over 0.05 percent phosphorus or sulphur and free of alloys. May include rail chips. May not include machine shop or other light turnings and must weigh not less than 75 pounds per cubic foot in the original state of produc- tion. Specially Processed Grades to Meet Consumer Requirements Grades of scrap prepared especially to meet with steel mill or foundry requirements, individual specifications to be agreed on between consumer and supplier. Cast Iron Grades 252 Cupola cast. Clean cast iron scrap such as columns, pipes, plates, and castings of a miscellaneous nature, including auto- mobileblocks and cast iron parts of agricultural and other machinery. Free from stove plate, burnt iron, brake shoes or foreign material. Cupola size, not over 24 inches x 30 inches, and no piece over 150 pounds in weight. 253 Charging box cast. Clean cast iron scrap in sizes not over 60 inches in length or 30 inches in width, suitable for charging into an open hearth furnace without further preparation. Free from burnt iron, brake shoes, orstove plate. 254 Heavy breakable cast. Cast iron scrap over charging box size or weighing more than 500 pounds. May include cylinders and driving wheel centers. May include steel which does not exceed 10 percent of the casting by weight. 255 Hammer block or bases. Cast iron hammer blocks or bases. SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM 256 Burnt iron. Burnt cast iron scrap, such as stove parts, grate bars, and miscellaneous burnt iron. May include sash weights or window weights. 257 Mixed cast. May include all grades of cast iron except burnt iron. Dimensions not over 24 inches x 30 inches and no piece over 150 pounds in weight. 258 Stove plate, clean cast iron stove. Free from malleable and steel parts, window weights, plow points, or burnt cast iron. 259 Clean auto cast. Clean auto blocks; free of all steel parts except camshafts, valves, valve springs, and studs. Free of nonferrous and non-metallic parts. 260 Unstripped motor blocks. Automobile or truck motors from which steel and non- ferrousfittings may or may not have been removed. Free from driveshafts and all parts of frames. 261 Drop broken machinery cast. Clean heavy cast iron machinery scrap that has been broken under a drop. All pieces must be of cupola size, not over 24 inches x 30 inches, and no piece over 150 pounds in weight. 262 Clean auto cast, broken, not degreased. Clean auto blocks, free of all steel parts except camshafts, valves, valve springs and studs. Free of nonferrous and non-metallic parts, and must be bro- ken tocupola size,150 pounds or less. 263 Clean auto cast, degreased. Free of all steel parts except camshafts, valves, valve springs, and studs. Free of nonferrous and non-metallic parts, and must be broken into cupola size,150 pounds or less. 264 Malleable. Malleable parts of automobiles, railroad cars, locomo- tives, ormiscellaneous malleable iron castings. Free from cast iron and steel parts and other foreign mate- rial. 265 Broken ingot molds and stools. Broken ingot molds and stools, cast iron, maximum size 2 feet x 3 feet x 5 feet. 266 Unbroken ingot molds and stools. Unbroken ingot molds and stools, cast iron. Special Boring Grades 267 No.1 chemical borings. New clean cast or malleable iron borings and drillings containing not more than 1 percent oil, free from steel turnings, or chips, lumps, scale, corroded or rusty material. Guidelines for ferrous Scrap CODE ITEM 269 Briquetted cast iron borings, cold process. Cast iron boring briquettes, free of steel and nonfer- rousmaterial, hydraulically compressed into a cohe- sivesolid, reasonably free of oil, and having a density of not less than 60 percent. 270 Malleable borings. Clean malleable iron borings and drillings, free of steel turnings scale, lumpsand excessiveoil. 271 No. 2 chemical borings. New clean cast or malleable iron borings and drillings, containing not more than 1.5 percent oil, free from steel turnings, or chips, lumps, scale, corroded or rusty material. Steel From Scrap Tires General Guidelines Items not covered in the specifications, and any variations in the specification, are subject to specialcrrangement between buyer and seller. Percentages listed below are by weight. Preparation Consumer and supplier to agree upon preparation for trans- port,such asthe following: Loose-Whole. Loose-Chopped. If wire is chopped or shredded, parties may wish to specify the means of processing and/or characteristics of the final product (density, length of pieces, etc.). Baled. Bales of wire should maintain their form during loading, shipment, unloading, storage, and handling typical of that done at a consuming facility, unless otherwise specified. Baled-High Density. Hydraulically compressed, no dimension larger than 24", density of at least 75 pounds per square foot. Baled-HRB/Low Density. Density of less than 75 pounds per square foot. Each bale secured with sufficient number of bale ties drawn tight to insure a satisfactory delivery. Other Means of Preparation. Individual specifications to be agreed upon between consumer and supplier. 272 Pulled bead wire (Truck)-Grade 1. Not chopped; made up of loops of wire. Less than five percent (c5%) rubber/fiber. 273 Pulled bead wire (Truck)-Grade 2. Not chopped; made up of loops of wire. Five to ten per- cent (5-10%) rubber/fiber. 274 Pulled bead wire (Truck)-Grade 3. Not chopped; made up of loops of wire. Greater than ten percent (>10%) rubber/fiber. 275 Pulled bead wire (Passenger)-Grade 1. Not chopped; made up of loops of wire. Less than five percent (c5%) rubber/fiber. 268 Briquetted cast iron borings, hot process. 276 Pulled bead wire (Passenger)-Grade 2. Cast iron borings, heated, Briquetted, to a density of Not chopped; made up of loops of wire. Five to ten per- approximately 85 percent, oil and water content under cent (5-10%) rubber/fiber. 1 percent. Guidelines for ferrous Scrap CODE ITEM 277 Pulled bead wire (Passenger)-Grade 3. Not chopped; made up of loops of wire. Greater than ten percent (>10%) rubber/fiber. 278 Processed tire wire (Ferrous)-Grade 1. Chopped. Less than two percent (c2%) rubber/fiber. 279 Processed tire wire (Ferrous)-Grade 2. Chopped. Less than five percent (c5%) rubber/fiber. 280 Processed tire wire (Ferrous)-Grade 3. Chopped. Five to ten percent (5-10%) rubber/fiber. 281 Processed tire wire (Ferrous)-Grade 4. Chopped. Ten to twenty percent (10-20%) rubber/fiber. 282 Processed tire wire (Ferrous)-Grade 5. Chopped. Greater than twenty percent (>20%) rubber/fiber. Railroad Ferrous Scrap* Specifications of Association of American Railroads promul- gated by its Purchases and Materials Management Division (Revised 1973) INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. CODE ITEM (12) Cast Iron, No.1. Cast iron scrap, such as columns, pipes, plates, and/or castings of miscellaneous nature, but free from stove plates, brake shoes, and burnt scrap. Must be cupola size, not over 24 x 30 inches in dimension and no piece to weigh over 150 pounds. Must be free from foreign material. (13) Cast Iron, No. 2. Pieces weighing over 150 pounds, but not more than 500 pounds. Free from burnt cast. (14) Cast Iron, No. 3. Pieces weighing over 500 pounds; includes cylinders, driving wheel centers and/or all other castings. (Free from hammer blocks or bases.) (15) Cast Iron, No. 4. Burnt cast iron scrap, such as grate bars, stove parts and/or miscellaneous burnt scrap. (16) (17) (2) Axles, Steel. Solid car and/or locomotive friction bearing, 8 inch diameter and under (free of axles with key-way (18) between wheel seats, no axles of shorter lengths than distance between wheel seats to be included). (2A) Axles, Steel. (18A) Solid car and/or locomotive friction bearing over 8 inch diameter (free of axles with key-way between wheel seats, no axles of shorter length than distance (23) between wheel seats to be included). (3) Axles, Steel. Cast Iron Brake Shoes. Brakes shoes of all types except composition-filled shoes. Couplers and/or Knuckles. Railroad car and/or locomotive steel couplers, knuckles and/or locks stripped clean of all other attachments. Frogs and/or Switches, uncut. Steel frogs and switches that have not been cut apart, exclusive of manganese. Railbound Manganese Frogs and Switch Points with manganese inserts that have not been cut apart. Malleable. Malleable parts of automobiles, railroad cars, locomo- tiveand/ormiscellaneous malleable castings. Roller bearing 8 inch diameter and under (no axles of (24) Melting Steel, Railroad No. 1. shorter lengths than distance between wheel seats to Clean wrought iron or steel scrap,'/4 inch and over in be included). thickness, not over 18 inches in width, and not over 5 feet in length. May include pipe ends and material 1/8 (3A) Axles, Steel, inch to'/4 inch in thickness, not over 15 inches x 15 Roller bearing over 8 inch diameter (no axles of short- inches. Individual pieces cut so as to lie reasonably flat er length than distance between wheel seats to be in charging box. included). (27) Rail, Steel No. 1. (4) Spikes, Track Bolts and Nuts, and Lock Washers, may Standard section tee rails, original weight 50 pounds include Rail Anchors. per yard or heavier, lO feet long and over. Suitable for (5) Tie Plates. rerolling into bars and shapes. Free from bent and Steel. twisted rails, frog, switch, and guard rails, or rails with split heads and broken flanges. Continuous welded rail (6) Rail Joints, Angle and/or Splice Bars. may be included provided no weld is over 9 inches Steel. from the end of the piece of rail. (9) Bolsters and/or Truck Sides, Frames: Uncut. (28A) Rail, Steel No. 2 Cropped Rail Ends. Cast steel. Standard section, original weight of 50 pounds per (11) Cast Steel, No. 2, yard and over, l8 inches long and under. Steel castings, over 18 inches wide and/or over 5 feet (28B) Rail, Steel No. 2 Cropped Rail Ends. long. Standard section, original weight of 50 pounds per (11A) Cast Steel, No. 1, yard and over, 2 feet long and under. Steel castings, l8 inches and under, not over 5 feet (28C) Rail, Steel No. 2 Cropped Rail Ends. long, including cut truck side frames and bolsters. Standard section, original weight 50 pounds per yard and over, 3 feet long and under. SCRAP SPECIFICATIONS CIRCULAR 2007 CODE ITEM (29) Rail, Steel No. 3. Standard section tee, girder, and/or guard rails, to be free from frog and switch rails not cut apart, and con- tain no manganese, cast, welds, or attachments of any kind except angle bars. Free from concrete, dirt, and foreign material of any kind. (30) Sheet Scrap, No.1. Under 3/,6 inch thick, may include hoops, band iron and/or steel, scoops and/or shovels (free of wood). Must be free from burnt or metal coated material, cushion, or other similar springs. (31) Sheet Scrap, No. 2. Galvanized or tinned material and/or gas retorts, and/or any other iron or steel material not otherwise classified. (32) Steel, Tool. (Specify kind in offering.) (33) Steel, Manganese. All kinds of manganese, rail, guard rails, frogs and/or switch points, cut or uncut. (34) Steel, Spring. Coil and/or elliptical, minimum thickness'/4 inch, may be assembled or cut apart. (34A) Steel, Spring. Coil only. (35) Structural, Wrought Iron and/or Steel Uncut. All steel or steel mixed with iron from bridges, struc- turesand/orequipment that has not been cut apart, may include uncut bolsters, brakebeams, steel trucks, underframes, channel bars, steel bridge plates, frog and/or crossing plates and/or other steel of similar character. Guidelines for ferrous Scrap CODE ITEM (36) Tires. All locomotive, not cut to specified lengths. (38) Turnings. No. 1. Heavy turnings from wrought iron and/or steel railroad axles orheavy forgingsand/or rail chips, to weigh not less than 75 pounds per cubic foot. Free from dirt or other foreign material of any kind. Alloy steel scrap may be excluded from these specifications by mutual agreement between buyer and seller. (38A) Turnings, Drillings and/or Borings. No. 2. Cast, wrought, steel and/or malleable iron borings, turnings and/or drillings mixed with other metals. (40) Wheels, No.1. Cast iron car wheels. (42) Wheels, No. 3. Solid cast steel, forged, pressed and/or rolled steel car and/or locomotive wheels, not over 42 inches diame- ter. (Specify kind in offering.) (45) Destroyed Steel Cars. Bodies of steel cars cut apart sufficiently to load. (Specify kind.) (45A) Destroyed Steel Car Sides and Box Car Roofs. Cut to a maximum length of... and a maximum width of... suitable for use in super presses and shears with- outadditional preparation. *Specifications in force as of publication date. INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Guidelines for Glass Cullet: GC-2007 Container Glass Cullet Specifications Preamble These standards and practices apply to container glass cutlet for purchase or sale in the United States and Canada. Transac- tionscovering shipments to or from other countries may also be in accordance with these standards and practices and may be modified by mutual agreement between buyer and seller. These specifications are guidelines for buying and selling con- tainerglass culletand always subject to the buyer and seller's agreement. 5. Terms Terms shall be "net cash 30 days after date of shipment" unless otherwise agreed upon. Arbitration In the event of a total disagreement between buyer and seller, the dispute should be submitted to ISRI arbitration. In all cases, the cost of arbitration shall be borne by the party found to be at fault, or split in the event of compromise, as determined by the arbitrators. Scrap Glass Definitions Container Glass Cullet: crushed or whole scrap soda-lime-silica container glass. Unprocessed Container Glass Cullet: broken or whole scrap glass containers that comply with the proper ISRI glass specifications. Processed (Furnace Ready) Container Glass Cullet: crushed and whole contaminate-free scrap container glass that com- plieswith the proper ISRI glass specifications. Organic Matter: consists of organic materials that are non container glass items; for example, paper labels should not exceed 0.2%. Ferrous Materials: are magnetic metals, i.e. steel, iron, etc., and therefore must be removed during scrap glass processing. Non-ferrous Materials: are non-magnetic metals, i.e. alu- minum,lead, copper, etc., and therefore must be removed dur- ingglass processing. The Purchase Agreement Each transaction covering the purchase or sale of container glass Cullet should be confirmed in writing and include agree- ment onthe following items: 1. Product Where possible, each container glass cutlet grade shall be specified in accordance with the grade as defined. 2. Quantity Where possible, the quantity shall always be specified in terms of a definite number of tons of 2,000 pounds each. A. If the quantity is specified in tons, the order shall be consid- eredcompleted when aggregate shipments are 5% under or overthe quantity ordered. B. If the quantity is specified in carloads or truckloads, a "load" shall be defined as a truck, trailer, or railroad car loaded to full visible capacity not to exceed established legal weight limits. 3. Packaging It should be stated whether shipped units are to be in boxes, or in bulk by railroad car, truck, or trailer. Where possible, approxi- mate weights should be specified. 4. Price Units The price agreed upon shall be clearly stated in US dollars and cents per 2,000 pounds or in US dollars and cents per hundred weight. UNPROCESSED FLINT CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica beverage or food container glass. Cullet Colors Segregation: Flint Cullet Flint 95-100% Amber 0-5% Green 0-5% Other Colors 0-5% Size: Cullet maybe broken but not pulverized. Moisture: Cullet should be free of excess moisture. Contaminant Listings: Outthrow Materials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non-acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc.) metals, ores, miner- als,bricks, clay, grinding and refractory materials, rocks, clay and ceramic closures. General: The quality of the unprocessed flint container glass cutlet must be such that after beneficiationwith aconvention- alcontainer glass cutlet processor it will be suitable for the pro- duction ofglass containers. UNPROCESSED AMBER CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica beverage or food container glass. Cullet Colors Segregation: Amber Cullet Amber 90-100% Flint 0-5% Green 0-5% Other Colors 0-5% Size: Cullet maybe broken but not pulverized. Moisture: Cullet should be free of excess moisture. Contaminant Listings: Outthrow Materials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non-acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc.) metals, ores, miner- als,bricks, clay, grinding and refractory materials, rocks, clay and ceramicclosures. SCRAP SPECIFICATIONS CIRCULAR 2007 General: The quality of the unprocessed amber container glass cutlet must be such that after beneficiation with aconvention- alcontainer glass cutlet processor it will be suitable for the pro- duction ofglass containers. UNPROCESSED GREEN CONTAINER GLASS GULLET SPECIFICATIONS Composition: soda-lime-silica beverage or food container glass. Gullet Colors Segregation: Green Gullet Green 90-100% Flint 0-10% Amber 0-10% Other Colors 0-5% Size: Gullet may be broken but not pulverized. Moisture: Gullet should be free of excess moisture. Contaminant Listings: Outthrow Materials: Normal container labels; ring and metal closures where processing capabilities permit. Prohibitive Materials: Non-acceptable items include non-con- tainerglass (vision ware, light bulbs, crystal, windows, mirrors, drinking glasses, ceramic, milk glass, etc:) metals, ores, miner- als,bricks, clay, grinding and refractory materials, rocks, clay and ceramic closures. General: The quality of the unprocessed green container glass cutlet must be such that after beneficiation with aconvention- alcontainer glass cutlet processor it will be suitable for the pro- duction ofglass containers. PROCESSED (FURNACE READY) FLINT CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica container glass. Container Glass Gullet Colors Segregation: Flint Gullet Flint 95-100% Amber 0-5% Green 0-1% Other Colors 0-.5% Total NON-Flint Gullet = c5% Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum offine particles. Material size is based upon buyer and seller's agreement. Contaminant Listings: Outthrow Materials: Organic Matter, allowable percentage based upon buyer and seller's agreement. Prohibitive Materials: Ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead-based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) Guidelines for Glass Gullet PROCESSED (FURNACE READY) AMBER CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica container glass Container Glass Gullet Colors Segregation: Amber Gullet Amber 90-100% Flint 0-10% Green 0-10% Other Colors 0-5% Total NON-Amber Gullet= X10% Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum offine particles. Material size is based upon buyer and seller's agreement. Contaminant Listings: Outthrow Materials: Organic Matter, allowable percentage based upon buyer and seller's agreement. Prohibitive Materials: Ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead-based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) PROCESSED (FURNACE READY) GREEN CONTAINER GLASS GULLET SPECIFICATIONS Composition: Soda-lime-silica container glass Container Glass Gullet Colors Segregation: Green Gullet Green 70-100% Flint 0-15% Amber 0-15% Other Colors 0-10% Total NON-Green Gullet= X30% The color green typically consists of a variety of shades, for example: emerald green or lime green. Size: Various sizes from whole glass containers to -100 Mesh. However, the ideal material size is 3/8" to 3/4" with a 10% mini- mum offine particles. Material size is based upon buyer and seller's agreement. Contaminant Listings: Outthrow Materials: Organic Matter, allowable percentage based upon buyerand seller's agreement. Prohibitive Materials: Ferrous Metals Nonferrous Metals Ceramics (such as cups, saucers, dinnerware, pottery, etc.) Other Glass (for example, plate window glass, heat-resist- ant glass-such as Pyrex-and lead based glass-such as crystal ware, television tubes, vision ware, etc.) Other Materials (such as bricks, rocks, etc.) INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Paper Stock: Domestic Transactions Preamble These standards and practices apply to paper stock for repulp- ingonly and are for use in the United States, Canada, and Mex- ico. Transactions may be modified by mutual agreement between Buyer and Seller. Basic to the Success of any Buyer-Seller Relationship is an Atmosphere of "Good Faith:' In keeping with this, the following principles have been estab- lished: 1. Seller must use due diligence to ascertain that shipments consist of properly packed paper stock and that shipments are made during the period specified. 2. Arbitrary deductions, cancellations and/or rejections by the Buyer are counter to acceptable good trade practices. 3. Seller shall provide the quality of paper stock agreed upon but shall not be responsible for the use of the paper stock or of the manufactured product. I. The Purchase Agreement Each transaction covering the purchase or sale of paper stock shall be confirmed in writing and include agreement on the fol- lowing items: 1. Quantity Where possible, the quantity shall always be specified in terms of a definite number of short tons of 2,000 lbs. each or metric tonnes of 2,204.6 pounds each. a. When the quantity is specified in tons or tonnes, the order shall be considered completed when aggregate shipments are 5% under or over the quantity ordered. b. When the quantity is specified in carloads or truck- loads, a "load" shall be defined as a truck, trailer, or railcar loaded to full visible capacity not to exceed established legal weight limits. c. The Buyer and Seller may establish minimum carload and/or truckload weights. 2. Grades Where possible, each grade purchased shall be specified in accordance with the grade as defined in SECTION VI herein. 3. Packing Unit type, i.e.: bales, skids, rolls, pallets, boxes, securely tied bundles or loose should be specified. 4. Pricing and Terms The agreed price and payment terms shall be clearly stat- ed. 5. Shipping Terms Shipping terms shall be indicated with the use of phrases such as "f.o.b. shipping point" or "f.o.b. delivered." 6. Shipping Instructions Shipping instructions should clearly specify shipping schedule, route, carrier and destination. 7. Shipping Period The shipping period shall be understood to be within the same calendar month of the date of the order unless oth- erwisespecified. II. Fulfillment by the Seller The practice of the Seller shall be in accordance with the fol- lowing: 1. Acceptance All orders shall be confirmed in writing. 2. Grading Paper stock sold under the grade names appearing in SECTION VI shall conform to those grading definitions. 3. Baling Each bale must be secured with a sufficient number of bale ties drawn tight to ensure a satisfactory delivery. 4. Tare If agreed to by the Buyer, sides and headers may be used to make a satisfactory delivery of the bales but must not be excessive. The weight of skids, Gaylord boxes and other similar materials shall be deducted from the gross invoice weight. 5. Loading Paper stock shall be loaded as follows: a. Before they are loaded, railcars and trucks shall be free from objectionable materials and odors, and shall have sound floors and doors. b. All loads should consist entirely of one grade of paper stock unless otherwise agreed to. When two or more grades are included in the same load, units of each grade should be kept together in a separate part of the railcar or truck. c. Paper stock must be loaded in a manner that will mini- mizeshifting and breakage. Excessive breakage due to improper loading can be cause for rejection. d. Paper stock shall be loaded in accordance with indus- trysafety best practices. Please refer to the following guide for valuable safety information: http://www.isri.org/safeshipping 6. Shipping Notice/Bill of Lading Shipping by Truck A bill of lading or shipping notice shall accompany each shipment to the Buyer and should include the following: a. Date of shipment b. Release number (if applicable) Paper Stock Industries A NATIONAL CHAPTER OF THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. SCRAP SPECIFICATIONS CIRCULAR 2007 c. Number of bales/rolls d. Grade of paper e. Name of trucking company, trailer number and driver's signature f. Shipper's signature Shipping by Rail When shipping by railcar, a bill of lading with shipping instructions shall be provided to the railroad and to the Buyer immediately upon release of the railcar and these documents should include the following: a. Date of shipment b. Release number (if applicable) c. Number of bales/rolls d. Grade of paper e. Car number f. Weighing instructions g. Routing h. Destination i. Shipper's signature 7. Invoicing Invoices, if required, should conform to instructions on the order and include the following data: a. Date of shipment b. Railcar or truck number c. Customer's order number d. Release Number (if applicable) e. Shipper's invoice number f. FOB point g. Number of units (bales, rolls, skids etc.) h. Weight and grade i. Price and extension j. Payment terms 8. Rejection When notified of a rejection, the Seller must, within two business days, advise the Buyer as to which of the follow- ingprocedures the Seller has decided upon: a. Agree with the Buyer to a compromise acceptance and settlement. b. Inspect the quality of the rejected material. The inspection and final disposition by the Seller shall take place within three business days of the notification. By mutual agreement, this time limit maybe exceeded. c. Order reshipment of the material. d. Request that the Buyer agree to submit the rejected shipment to arbitration. III. Fulfillment by the Buyer The practice of the Buyer shall be in accordance with the fol- lowing: Upon receipt of the shipment, the Buyer is to make all possible effort to inspect the contents while it is still loaded. Paper Stock Domestic Transactions a. Acceptable Loads (i.e. quality of paper stock, weight, bale integrity, moisture, order quantity, etc.) if the shipment appears to be in accordance with the order, the shipping notice and other parame- ters asestablished between the Buyer and the Seller, the Buyer shall proceed with the unloading and shall provide the Seller with the receiving weights within three business days of unloading. b. Unacceptable Loads (i.e. quality of paper stock, weight, bale integrity, moisture, order quantity, etc.) if the shipment does not appear to be in accor- dancewith the order, the shipping notice or any other parameters as established between the Buy- erand the Seller, the Buyer shall immediately noti- fytheSeller. the Buyer shall set aside any portion of the ship- mentthat is controversial and take reasonable care to protect that paper stock from any external deterioration or contamination until the final dis- position ofthat shipment is determined. Buyer has 21 days to downgrade or reject if the Buyer, at anytime with 21 calendar days after receipt of a shipment, finds objectionable materials heretofore not visible, the Buyer shall have the right to downgrade or reject the paper stock and shall immediately notify the Seller. The Seller will then determine the final disposition of the shipment. in the event of a rejection, the Buyer shall be responsible for any paper stock used by the Buyer, and the attendant freight, other than such quanti- ty asmay beconsidered reasonable for laboratory sampling or testing purposes. IV. Miscellaneous Practices 1. Ownership a. If the shipment is purchased "f.o.b. shipping point" and is in accordance with the agreement covering the transaction, it becomes the property of the Buyer when loaded on the transportation vehicle. b. If the shipment is purchased on a "delivered destina- tion" basis and is in accordance with the agreement covering the transaction, it remains the property of the Seller until it is delivered to the Buyer by carrier. c. If the shipment is purchased on an "f.o.b. shipping point-specified freight allowed" basis and is in accor- dancewith the agreement covering the transaction, it becomes the property of the Buyer when loaded on the transportation vehicle. 2. Demurrage Charges a. Any demurrage accrued on a shipment due to the fail- ure ofthe Seller to ship in accordance with the order, except with respect to quality, is the liability of the Seller. b. In the event that a rejection for quality stands, any demurrage accruing on the shipment prior to notifica- tion tothe Seller shall be the Buyer's liability. Paper Stock Domestic Transactions c. In the event that negotiation of a substantiated rejec- tionfor quality results in agreement by the Buyer to accept the shipment, then only the demurrage, follow- ingnotification of rejection-and including 24 hours after the agreement-becomes the liability of the Seller. Demurrage accruing prior to and including the day of notification becomes the liability of the Buyer. 3. Carrier Selection a. FO.B. Shipping Point. Selection of the carrier is at the discretion of the Buyer unless otherwise agreed. b. FO.B. Delivered. Selection of the carrier is at the dis- cretion ofthe Seller unless otherwise agreed. Should the Buyer specify a carrier or routing which results in a freight cost higher than would have occurred had the Seller selected the carrier or routing, the difference shall be charged to the Buyer. c. Any extra switching or excess freight charges accruing on a shipment due to the failure to the Seller topro- tectthe agreed upon minimum rail rate or to ship in accordance with the agreement, is the liability of the Seller. 4. Weight Discrepancies No debits, credits or adjustments shall be issued on any shipment of paper stock when the weight variation is 1% or less. In the event that a discrepancy exceeds those parameters mentioned above as "allowable," the Buyer and Seller shall exchange copies of unloading and loading records showing individual bale weights. In the event that both parties have such records, and errors cannot be determined, it is rec- ommendedthat the weight closest to the public carrier's scale weight be assumed to be correct. In the absence of such records on the part of one of the parties, the records of the other party shall govern. 5. Moisture content a. All paper must be packed air dry. Where excess moisture is present in the shipment, the Buyer has the right to request an adjustment and if a settlement cannot be reached, the Buyer has the right to reject the shipment. 6. Replacement of Shipment a. In the event that any shipment is rejected due to quality: Whether or not the shipment is to be replaced is to be decided by mutual agreement between Buyer and Seller. 7. Promptness of Shipment In the event that shipments are postponed: a. On instructions of the BUYER, the Seller shall have the option of extending the time limit of the order by the same number of days of the postponement, or ofcan- celingthat portion of the order on which shipment was postponed. Seller shall promptly notify Buyer of option selected. b. On the instructions of the SELLER, the Buyer shall have the option of extending the time limit of the order bythe same number of days of the postponement, or of canceling that portion of the order on which ship- INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. ment was postponed. Buyer shall promptly notify Sell- er ofoption selected. V. Arbitration 1. In the event of a total disagreement between Buyer and Seller, the dispute should be submitted to ISRI arbitration. 2. In all cases, the cost of arbitration shall be borne by the party found to be at fault, or split in the event of compro- mise, asdetermined by the arbitrators. VI. Grade Definitions The definitions which follow describe grades as they should be sorted and packed. CONSIDERATION SHOULD BE GIVEN TO THE FACT THAT PAPER STOCK AS SUCH IS A SECONDARY MATERIAL PRODUCED MANUALLY AND MAY NOT BETECH- NICALLYPERFECT. Definitions may not specifically address all types of processes used in the manufacture or recycling of paper products. Specific requirements should be discussed between Buyer and Seller during negotiations. Outthrows The term "Outthrows" as used throughout this section is defined as "all papers that are so manufactured or treated or are in such a form as to be unsuitable for consumption as the grade specified." Prohibitive Materials The term "Prohibitive Materials" as used throughout this sec tion is defined as: a. Any materials which by their presence in a packing of paper stock, in excess of the amount allowed, will make the packaging unusable as the grade specified. b. Any materials that may be damaging to equipment. Note: The maximum quantity of "Outthrows" indicated in con- nectionwith the following grade definitions is understood to be the TOTAL of "Outthrows"and "Prohibitive Materials:" A material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow;" whereas it is "UNUSABLE" in White Ledger and in this case is classified as a "Prohibitive Material: Glossary of Terms A supplemental glossary of paper stock terms is located on page 53. The purpose of this limited list of terms is to help the user better understand specific grade definitions contained within this Circular. (1) Residential Mixed Paper Consists of a mixture of various qualities of paper not limited as to type of fiber content, normally generated from residen- tial,multi-material collection programs. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (2) Soft Mixed Paper Consists of a clean, sorted mixture of various qualities of paper not limited as to type of fiber content. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% SCRAP SPECIFICATIONS CIRCULAR 2007 (3) Hard Mixed Paper (HMP) Consists of a clean, sorted mixture of various qualities of paper containing less than 10%groundwood content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% (4) Boxboard Cuttings Consists of new cuttings of paperboard used in the manufac- ture of folding cartons, set-up boxes and similar boxboard products. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (5) Mill Wrappers Consists of paper used as outside wrap for rolls, bundles, or skids of finished paper. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% (6) News Consists of newspaper as typically generated from news drives and curbside collections. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (7) News, De-ink Quality (#7 ONP) Consists of sorted, fresh newspapers, not sunburned, contain- ing not more than the normal percentage of rotogravure and colored sections. May contain magazines. Prohibitive Materials None permitted Total Outthrows may not exceed '/4 of 1% (8) Special News, De-ink Quality (#8 ONP) Consists of sorted, fresh newspapers, not sunburned, free from magazines, white blank, pressroom over-issues, and paper other than news, containing not more than the normal percentage of rotogravure and colored sections. This grade must be tare-free. Prohibitive Materials None permitted Total Outthrows may not exceed '/4 of 1% (9) Over-Issue News (01 or OIN) Consists of unused, overrun newspapers printed on newsprint, containing not more than the normal percentage of rotogravure and colored sections. Prohibitive Materials None permitted Total Outthrows None permitted (10) Magazines (OMG) Consists of coated magazines, catalogues, and similar printed materials. May contain a small percentage of uncoated news- type paper. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 3% (11) Corrugated Containers (OCC) Consists of corrugated containers having liners of either test liner, jute or kraft. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (12) Double-Sorted Corrugated (DS OCC) Consists ofdouble-sorted corrugated containers, generated from supermarkets and/or industrial or commercial facilities, having liners of test liner, jute, or kraft. Material has been spe- ciallysorted to be free of boxboard, off-shore corrugated, plas- tic,and wax. Paper Stock Domestic Transactions Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (13) New Double-Lined Kraft Corrugated Cuttings (DLK) Consists of new corrugated cuttings having liners of either test liner, jute, or kraft. Treated medium or liners, insoluble adhe- sives,butt rolls, slabbed or hogged medium, are not acceptable in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (14) Fiber Cores Consists of paper cores made from either chipboard and/or liner- board,single ormultiple plies. Metal or plastic end caps, wood plugs, and textile residues are not acceptable in this grade. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (15) Used Brown Kraft Consists of brown kraft bags free of objectionable liners and original contents. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (16) Mixed Kraft Cuttings Consists of new brown kraft cuttings, sheets and bag scrap free of stitched paper. Prohibitive Materials None permitted Total Outthrows may not exceed .1% (17) Carrier Stock Consists of printed or unprinted, unbleached new beverage carrier sheets and cuttings. May contain wet strength addi- tives. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (18) New Colored Kraft Consists of new colored kraft cuttings, sheets and bag scrap, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (19) Grocery Bag Scrap (KGB) Consists of new brown kraft bag cuttings, sheets and misprint bags. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (20) Kraft Multi-Wall Bag Scrap Consists of new brown kraftmulti-wall bag cuttings, sheets, and misprint bags, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (21) New Brown Kraft Envelope Cuttings Consists of new unprinted brown kraft envelopes, cuttings or sheets. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (22) Mixed Groundwood Shavings Consists of trim of magazines, catalogs and similar printed matter, not limited with respect to groundwood or coated stock, and may contain the bleed of cover and insert stock as well asbeater-dyed paper and solid color printing. Paper Stock Domestic Transactions Prohibitive Materials None permitted Total Outthrows may not exceed 2% (23) Telephone Directories Consists of clean telephone directories printed for or by tele- phonedirectory publishers. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (24) White Blank News (WBN) Consists of unprinted cuttings and sheets of white newsprint or other uncoated white groundwood paper of similar quality. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (25) Groundwood Computer Printout (GW CPO) Consists of groundwood papers which are used in forms manu- factured for use in data processing machines. This grade may contain colored stripes and impact or nonimpact (e.g., laser) computer printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (26) Publication Blanks (CPB) Consists of unprinted cuttings or sheets of white coated or filled groundwood content paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (27) Flyleaf Shavings Consists of trim from magazines, catalogs and similar printed matter. May contain the bleed of cover and insert stock to a maximum of 10% dark colors. Beater-dyed paper may not exceed 2%. Shavings of novel news or newsprint grades may not be included in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (28) Coated Soft White Shavings (SWS) Consists of unprinted, coated, and uncoated shavings and sheets of white groundwood-free printing paper. May contain a small percentage of groundwood. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (29) (Grade not currently in use) (30) Hard White Shavings (HWS) Consists of shavings or sheets of unprinted, untreated white groundwood-free paper. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (31) Hard White Envelope Cuttings (HWEC) Consists ofgroundwood-free cuttings, shavings, or sheets of unprinted, untreated, and uncoated white envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (32) (Grade not currently in use) (33) New Colored Envelope Cuttings Consists ofgroundwood-free cuttings, shavings, or sheets of untreated, uncoated bleachable colored envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. (34) (Grade not currently in use) (35) Semi Bleached Cuttings Consists of sheets and cuttings of unprinted, untreated, groundwood-free paper such as file folder stock, manila tabu- latingcard trim, untreated milk carton stock, or manila tag. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (36) (Grade not currently in use) (37) Sorted Office Paper (SOP) Consists of paper, as typically generated by offices, containing primarily white and colored groundwood-free paper, free of unbleached fiber. May include a small percentage of ground- wood computer printout and facsimile paper. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (38) (Grade not currently in use) (39) Manifold Colored Ledger (MCL) Consists of sheets, shavings, and cuttings ofindustrially- generated printed or unprinted colored or white groundwood- freepaper. All stock must be uncoated and free of nonimpact printing. A percentage of carbonless paper is allowable. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (40) Sorted White Ledger (SWL) Consists of uncoated, printed or unprinted sheets, shavings, guillotined books, and cuttings of white groundwood-free ledger, bond, writing, and other paper which has similar fiber and filler content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (41) Manifold White Ledger (MWL) Consists of sheets, shavings, and cuttings ofindustrially- generated printed or unprinted white groundwood-free paper. All stock must be uncoated and free of nonimpact printing. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (42) Computer Printout (CPO) Consists of white groundwood-free paper in forms manufac- turedfor use in data processing machines. This grade may contain colored stripes and impact ornon-impact (e.g. laser) computer printing, and may contain no more than 5% ground- wood inthe pack. All stock must be untreated and uncoated. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (43) Coated Book Stock (CBS) Consists of coated groundwood-free paper, printed or unprint- ed insheets, shavings, guillotined books and cuttings. A rea- sonablepercentage of paper containing fine groundwood may be included. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (44) Coated Groundwood Sections (CGS) Consists of printed, coated groundwood paper in sheets, sec- tions,shavings orguillotined books. This grade may not include news quality groundwood paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% SCRAP SPECIFICATIONS CIRCULAR 2007 (45) Printed Bleached Board Cuttings Consists ofgroundwood-free printed bleached board cuttings, free from misprint sheets, cartons, wax, greaseproof lamina- tion,gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% (46) Misprinted Bleached Board Consists ofgroundwood-free misprint sheets and cartons of bleached board, free from wax, greaseproof lamination, gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 2% (47) Unprinted Bleached Board Consists ofgroundwood-free unprinted, untreated bleached board cuttings, sheets or rolls, free from wax, greaseproof lam- inationand adhesives or coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (48) #1 Bleached Cup Stock (#1 Cup) Consists of untreated cuttings or sheets of coated or uncoated cup base stock. Cuttings with slight bleed may be included. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (49) #2 Printed Bleached Cup Stock (#2 Cup) Consists of printed, untreated formed cups, cup die cuts, and misprint sheets of coated or uncoated cup base stock. Glues must be water soluble. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (50) Unprinted Bleached Plate Stock Consists ofgroundwood-free bleached coated or uncoated, untreated and unprinted plate cuttings and sheets. Prohibitive Materials None permitted Total Outthrows may not exceed '/z of 1% (51) Printed Bleached Plate Stock Consists ofgroundwood-free bleached coated or uncoated, untreated printed plates and sheets. Must be free of coatings or inks that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% Specialty Grades The grades listed below are produced and traded in carload and truckload quantities throughout the United States, and because of certain characteristics (i.e., the presence of wet strength, polycoatings, plastic, foil, carbon paper, hot melt glue), are not included in the regular grades of paper stock. However, it is recognized that many mills have special equip- mentand are able to utilize large quantities of these grades. Since many paper mills around the world do use these special- tygrades, they are being listed with appropriate grade num- bersfor easy reference. Paper Stock Domestic Transactions The Paper Stock Industries Chapter of ISRI is not establishing specific specifications, which would refer to such factors as the type of wet strength agent used, the percentage of wax, the amount of polycoating, whether it is on top of or under the printing, etc. The specification for each grade should be deter- minedbetween Buyer and Seller, and it is recommended that purchase be made based on sample. These specialty grades are as follows: 1-S White Waxed Cup Cuttings 2-S Printed Waxed Cup Cuttings 3-S Plastic Coated Cups 4-S Polycoated Bleached Kraft-Unprinted 5-S Polycoated Bleached Kraft-Printed 6-S Polycoated Milk Carton Stock 7-S Polycoated Diaper Stock 8-S Polycoated Boxboard Cuttings 9-S Waxed Boxboard Cuttings 10-S Printed and/or Unprinted Bleached Sulphate Containing Foil 11-S Waxed Corrugated Cuttings 12-S Wet Strength Corrugated Cuttings 13-S Asphalt Laminated Corrugated Cuttings 14-S Beer Carton Scrap 15-S Contaminated Bag Scrap 16-S Insoluble Glued Free Sheet Paper and/or Board (IGS) 17-S White Wet Strength Scrap 18-S Brown Wet Strength Scrap 19-S Printed and/or Colored Wet Strength Scrap 20-S File Stock 21-S New Computer Print Out 22-S Ruled White 23-S Flyleaf Shavings Containing Hot Melt Glue 24-S Carbon Mix 25-S Books with Covers 26-S Unsorted Tabulating Cards 27-S Colored Tabulating Cards 28-S Carbonless Treated Ledger 29-S (Not currently in use) 30-S Plastic Windowed Envelopes 31-S Textile Boxes 32-S Printed TMP 33-S Unprinted TMP 34-S Manila Tabulating Cards 35-S Sorted Colored Ledger Paper Stock Domestic Transactions Glossary of Paper Stock Terms for Both Domestic and Export Transactions The following is a glossary of paper stock terms used within section VI, Grade Definitions, of the Guidelines for Paper Stock: PS-2005, for both Domestic and Export Transactions. These terms are not intended as a dictionary, but as a guide to help the Circular user better understand specific grade definitions as used in the recovered paper industry. ADHESIVES: Bonding substances that are non-water soluble are considered contaminants in pulpsubs, groundwood and deinking grades. BEATER-DYED: Paper dyed or colored during the paper man- ufacturingprocess. BLEACHED: Paper that has been whitened by chemicals. BOARDS: Paperboard 0.006 inch or thicker. BOGUS: Paper of inferior quality to a standard grade. BOXBOARD: Paperboard made from a variety of recovered fibers having sufficient folding properties and thickness to be used to manufacture folding orset-up boxes. CHEMICAL WOOD-FIBER PULP: Generic for cellulose fiber isolated and purified by a chemical digestive process. CHIPBOARD: Uncoated, non-folding paperboard made from a variety of recovered papers, having sufficient strength and structural properties to be used to manufacture game boards, book covers, notebook backing and similar products. COATINGS: A layer of adhesives, clays, varnish or any barrier applied to paper. CONTAINERBOARD:linerboard and corrugated medium used to manufacture shipping containers. CORES: Papertubes on which rolls of paper maybe wound for shipment. CORRUGATED CONTAINERS: Shipping containers made with kraft paper linerboard and corrugated medium. CUTTINGS: Paper stock by-product of paper converting oper- ations. FILLER/FILLED: Denotes papers that have minerals (clays or other pigments) added for improving quality or color. FLYLEAF/SHAVINGS: Trim scrap from printing operations. FREESHEET: Paper that contains less than 10%groundwood fiber (synonym: groundwood-free). GROUNDWOOD: Paper made with fibers produced without chemical pulping. GILT: Metallic (gold or silver) inks used in printing. HOGGED: Paper that has been mechanically torn or ripped to reduce its original size. HOT MELT: A type of glue or adhesive applied while hot/warm. Considered a contaminant in some grades. IMPACT (PRINTING): A paper printing process that physically applies ink to the paper surface. INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. INSOLVABLE GLUES: Glues that won't dissolve (break down) in water. JUTE: Strong, long-fibered pulp made from hemp. KRAFT: Paper made from sulfate pulp (synonyms: brown and strong). LAMINATED: Paper manufactured by fusing one or more lay- ers of paper together. LINERBOARD: Outside layers of a combination board used to manufacture corrugated shipping containers. MANIFOLD: May denote continuous forms or business forms with several parts (may be interleaved with carbon paper or be carbonless papers). MEDIUM: The inner corrugated fluted material used to manu- facture corrugated shipping containers. NON-IMPACT: Papers having printing images formed without impact. OFFSHORE/ASIAN: Denotes corrugated shipping containers manufactured overseas and containing bogus liners or medi- um. (Color is somewhat lighter/more yellow than North Ameri- can produced materials). PAPERBOARD: Denotes paper products used for packaging (corrugated boxes, folding cartons, set-up boxes, etc.). ROTOGRAVURE: A paper printing (intaglio) process typically used to create the highest quality of smoothness on coated and uncoated papers. Excess quantities are considered anout- throw ingrades #7, #8, and #9. SECTIONS: Unbound, unused printed material with full ink coverage. SHAVINGS: Trim from converting and bindery operations. SIGNATURES: A section of book obtained by folding a single sheet of printing paper. SLABBED: Type of paper stock normally generated by cutting rol Is. SULFITE: Papers and boards made from pulps made from an acid process. SULPHATE: Papers and boards made from alkaline processed pulps. TEST LINER: Liners, which are the outer ply of any kind of paperboard, containing 100% recycled material. TMP: Thermomechanical pulp. TREATED: Paper manufactured with additives. TRIM: Cuttings of paper stock generated at converting or bindery operations which normally have little or no printing. ULTRAVIOLET (UV) INKS/COATINGS: Papers having inks or coatings dried by utilizing an ultraviolet radiation method. Considered a contaminant in deinking grades. WET STRENGTH: Papers that have been treated with a moisture-resistant chemical that inhibits pulping. SCRAP SPECIFICATIONS CIRCULAR 2007 Paper Stock: Export Transactions Preamble These Guidelines apply to paper stock for repulping only and are for use in export transactions from the U.S. and Canada. Basic to the success of any Buyer-Seller relationship is an atmosphere of "good faith." In keeping with this, the following underlying principles have been accepted as necessary to the maintenance of amicable international dealings: 1. Seller must use due diligence to ascertain that shipments consist of properly packed paper stock and that shipment is made during the period specified. 2. Arbitrary rejections, deductions and cancellations bythe Buyer are counterto acceptable good trade practice. 3. Seller shall deliver the quality of paper stock agreed upon but shall not be responsible for its use or the paper or paperboard manufactured therefrom. 4. Unless otherwise mutually agreed to by both Buyer-Seller, all transactions shall conform to the trade practice out- lined inthese Guidelines and the grade descriptions shown in the PSI Standards and Practices Circular. I. The Purchase Agreement Each transaction covering the purchase or sale of paper stock should be confirmed in writing and include agreement on the following items: 1. Quantity Where possible, the quantity shall always be specified in terms of a definite number of metric tons of 2,204.6 pounds each, or short tons of 2,000 pounds each. a. If the quantity is specified in tons, the order shall be considered completed when aggregate shipments are 5% under or over the quantity ordered (unless Letter of Credit restrictions apply). b. If the quantity is specified in truckload and/or contain- erload, this is defined as full visible capacity but not in excess of legal or freight line limits. 2. Grades Where possible, each grade purchased shall be specified in accordance with the grade as defined in the latest Paper Stock Industries Chapter Standards and Practices Circular. Any deviation from the grades listed in the Paper Stock Industries Chapter Standards and Practices Circular should be specified and agreed to by both parties. 3. Packing Whether units are to be bales, skids, rolls, pallets, boxes, or bundles should be stated. Where possible, approximate sizes or weights should be specified. 4. Price The price agreed upon shall be clearly stated in U.S. dollars and cents. 5. Transportation Charges These shall be clearly indicated with the use of the follow- ingphrases such as: "FA.S. harbor," or "C&F," "C.I.F," or "container yard" (CY), "ex-ship," "ex-frontier." 6. Shipping a. Instructions-Should be provided by Buyer at time of order. Information should include: consignee; party to be notified; identification marks; insurance informa- tion;and freight payment information. b. Time Frame-Shipment to be completed within 30 days of receipt of order, Letter of Credit and instruction information, unless otherwise specified. 7. Terms Payment shall be made in U.S. dollars by means of an irrevocable Letter of Credit confirmed by a U.S. bank. 8. Method of Invoicing Invoicing instructions shall be clearly stated in Letter of Credit. II. Fulfillment by the Seller Practices of the Seller shall be in accordance with the follow- ing: 1. Acceptance All orders shall be confirmed in writing. 2. Grading Paper stock which is sold under the grade names appear- ing inthe PSI Standards and Practices Circular shall be warranted to conform to those grading definitions. 3. Baling Each bale must be secured with a sufficient number of bale ties drawn tight to insure a satisfactory delivery. 4. Tare Sides and headers must be adequate to make a satisfacto- rydelivery ofthe bale but must not be excessive. The weight of skids or iron cores should be deducted from a gross invoice weight. 5. Loading Paper stock shall be loaded as follows: a. Before they are loaded, cars, trucks, and containers shall be in sound condition and free from odors and objectionable materials. b. Grades should be loaded in straight loads unless other- wiseagreed to.When two or more grades are included in the same shipment, units of each grade should be kept together in a separate part of the container. Paper Stock Export Transactions c. Paper stock must be loaded in a manner that will mini- mizeshifting and breakage. Excessive breakage prior to unloading may be cause for a claim. 6. Shipping Notice A shipping notice or an invoice showing the date of ship- ment, container number and net weight of contents shall be mailed or telexed to the Buyer within 72 hours of ship- ment. Onrequest, abill of lading shall be furnished. 7. Invoicing Invoicing should conform to instructions on the order and include the following data: a. Date of Shipment b. Container Number c. Ship Name d. Bill of Lading Number e. Customer's Order Number f. Shipper's Invoice Number g. Number of Bales, Rolls, etc. h. Quantity and Grade i. Price and Extension j. Terms 8. Claims When a Seller has been notified of a claim, within five busi- ness days he/she must advise the Buyer as to which of the following procedures he/she has decided upon: a. Require the opportunity to inspect the quality of the material in question within five business days and dur- ingsuch period give Buyer final disposition. b. Agree with the Buyer to a compromise acceptance and settlement. c. Request the Buyer agree to submit the claim to arbitration. III. Fulfillment by the Buyer The practice of the Buyer shall be in accordance with the following: 1. Unloading After arrival of the shipment, the Buyer is to inspect the contents so far as possible while it is still loaded. If the shipment appears to be in accordance with the order and shipping notice, the Buyer shall proceed with the unloading. If the shipment does not appear to be in accordance with the order and shipping notices, or if the quality of the stock is not in accordance with specifications agreed to, the Buy- ershall immediately notify the Seller before unloading. If during the process of unloading, any portion of the ship- mentnot visible in the original inspection is not in accor- dancewith specifications, shipping notice and order, that portion shall be set aside and the Seller immediately noti- fied. If at any time within 21 days after receipt of shipment, the Buyer, upon opening the bales finds objectionable materials heretofore not visible, he shall immediately notify the Seller INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. In the event of any claim, the Buyer shall use due diligence to protect all controversial paper stock from external dete- rioration orcontamination. 2. Claims Other Than Quality The Buyer shall within 10 days of unloading notify the Sell- er ofany necessary changes and shall furnish detailed information with regard to these changes. 3. Rejection In the event of a rejection, the Buyer shall be responsible for any paper stock used by the Buyer and the freight thereon, other than such quantity as may be considered reasonable for laboratory sampling or testing purposes. The Buyer must protect the shipment from weather or any other elements until the claim is settled. IV. Miscellaneous Practices 1. Ownership If the shipment is purchased on a "delivered destination" basis, and is in accordance with the agreement covering the transaction, it remains the property of the Seller until it is delivered to the Buyer by carrier. 2. Demurrage Charges a. Any demurrage accrued on a shipment due to the fail- ure ofthe Seller to ship in accordance with the order, except with respect to quality, is the liability of the Sell- er. b. In the event that a rejection for quality stands, any demurrage accruing on the shipment prior to notifica- tion tothe Seller shall be the Buyer's liability. c. In the event that negotiation of substantiated rejection for quality results in agreement by the Buyer to accept the shipment, then only the demurrage, following noti- fication ofthe rejection-and including 24 hours after the agreement-becomes the liability of the Seller. Demurrage accruing prior to and including the day of notification becomes the liability of the Buyer. 3. Switching and Freight charges Any extra switching or excess freight charges accruing on a shipment due to the failure of the Seller to protect the agreed upon minimum rate or to ship in accordance with the agreement is the liability of the Seller. 4. Weight Discrepancies No debits, credits or adjustments shall be issued on any shipment of paper stock when the weight variation is 2% or less. In the event that a discrepancy exceeds those mentioned above as "allowable;" the Buyerand Sellershall exchange copies of certified weight in containers. In the event that both parties have such records, and errors cannot be determined, it is recommended that the weight closest to the public carrier's scale weight shall be assumed to be correct, Buyer and Seller should agree on the location of the public carrier's scale prior to shipment. In the absence of such records on the part of one of the parties, the records of the other party shall govern. SCRAP SPECIFICATIONS CIRCULAR 2007 5. Moisture Content All paper stock must be packed air dry. A moisture content of 12% is deemed to be air dry. Where excess moisture is present in the shipment, the Buyer has the right to request an adjustment. Whenever possible, such adjustment shall be made on an average air dry basis. 6. Replacement of Shipment In the event that any shipment is rejected due to quality: Whether or not the shipment is to be replaced is to be decided by mutual agreement between Buyer and Seller. 7. Promptness of Shipment a. In the event that Buyer causes shipment to be postponed: On instructions of the Buyer, the Sellershall have the option of extending the time limit of the order by the same number of days of the postponement, or of can- celingthat portion of the order on which shipment was postponed. Seller shall promptly notify Buyer of option selected. b. In the event that Buyer causes shipment to be postponed: On instructions of the Seller, the Buyershall have the option of extending the time limit of the order by the same number of days of the postponement, or of can- celingthat portion of the order on which shipment was postponed. Buyershall promptlynotifySellerof option selected. 8. Outthrows Outthrows shall be understood to be all papers that are so manufactured or treated or are in such form as to be unsuitable for consumption as the grade specified. 9. Prohibitive Materials a. Any materials which, by their presence in a packing of paper stock, in excess of the amount allowed, make the packing unusable as the grade specified. b. Any materials which, by their presence in a package of paper stock, pose a risk of damage to the equipment. Note: In connection with Items 8 and 9, a material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow";whereas it is "UNUSABLE" in White Ledger and in this case classi- fied as a "Prohibitive Material." V. Arbitration In the event of a total disagreement between Buyer and Seller, the dispute should be submitted to ISRI arbitration. In all cases, the cost of arbitration shall be borne by the party found to be at fault, or split in the event of compromise, as determined by the arbitrators. Paper Stock Export Transactions VI. Grade Definitions The definitions which follow describe grades as they should be sorted and packed. CONSIDERATION SHOULD BE GIVEN TO THE FACT THAT PAPER STOCK AS SUCH IS A SECONDARY MATERIAL PRODUCED MANUALLY AND MAY NOT BETECH- NICALLYPERFECT. Definitions may not specifically address all types of processes used in the manufacture or recycling of paper products. Specific requirements should be discussed between Buyer and Seller during negotiations. Outthrows The term "Outthrows" as used throughout this section is defined as "all papers that are so manufactured or treated or are in such a form as to be unsuitable for consumption as the grade specified." Prohibitive Materials The term "Prohibitive Materials" as used throughout this sec- tion isdefined as: a. Any materials which by their presence in a packing of paper stock, in excess of the amount allowed, will make the packaging unusable as the grade specified. b. Any materials that may be damaging to equipment. Note: The maximum quantity of "Outthrows" indicated in connection with the following grade definitions is under- stood to be the TOTAL of "Outthrows"and "Prohibitive Materials." A material can be classified as an "Outthrow" in one grade and as a "Prohibitive Material" in another grade. Carbon paper, for instance, is "UNSUITABLE" in Mixed Paper and is, therefore, classified as an "Outthrow"; whereas it is "UNUSABLE" in White Ledger and in this case is classified as a "Prohibitive Material." Glossary of Terms A supplemental glossary of paper stock terms is located on page 29. The purpose of this limited list of terms is to help the user better understand specific grade definitions contained within this Circular. (1) Soft Mixed Paper Consists of a mixture of various qualities of paper not limited as to type of baling or fiber content. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 10% (2) Mixed Paper Consists of a clean, sorted mixture of various qualities of paper containing less thanl0%of groundwood content. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 3% (3) (Grade not currently in use) (4) Boxboard Cuttings Consists of new cuttings of paperboard used in the manufac- ture of folding cartons, set-up boxes, and similar boxboard products. Prohibitive Materials may not exceed '/z of 1% Total Outthrows may not exceed 2% Paper Stock Export Transactions (5) Mill Wrappers Consists of paper used as outside wrap for rolls, bundles, or skids of finished paper. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 3% (6) News Consists of newspaper as typically generated from news drives and curbside collections. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (7) News, De-ink Quality (#7 ONP) Consists of sorted, fresh newspapers, not sunburned, contain- ing not more than the normal percentage of rotogravure and colored sections. May contain magazines. Prohibitive Materials None permitted Total Outthrows may not exceed 1/4 of 1% (8) Special News De-ink Quality (#8 ONP) Consists of sorted, fresh newspapers, not sunburned, free from magazines, white blank, pressroom over-issues, and paper other than news, containing not more than the normal percentage of rotogravure and colored sections. This grade must be tare-free. Prohibitive Materials None permitted Total Outthrows may not exceed 1/4 of 1% (9) Over-Issue News (01 or OIN) Consists of unused, overrun newspapers printed on newsprint, or securely tied in bundles, containing not more than the nor- malpercentage of rotogravure and colored sections. Prohibitive Materials None permitted Total Outthrows None permitted (10) Magazines (OMG) Consists of coated magazines, catalogues, and similar printed materials. May contain a small percentage of uncoated news- typepaper. Prohibitive Materials may not exceed 1% Total Outtrows may not exceed 3% (11) Corrugated Containers (OCC) Consists of corrugated containers having liners of either test liner, jute, or kraft. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (12) Double Sorted Corrugated (DS OCC) Consists of double sorted corrugated containers, generated from supermarkets and/or industrial or commercial facilities, having liners of test liner, jute, or kraft. Material has been spe- ciallysorted to befree of boxboard, off-shore corrugated, plas- tic,andwax. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (13) New Double- Lined Kraft Corrugated Cuttings (DLK) Consists of new corrugated cuttings having liners of either test liner, jute, or kraft. Treated medium or liners, insoluble adhe- sives,butt rolls, slabbed or hogged medium, are not acceptable in this grade. Prohibitive Materials None permitted INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. (14) Fiber Cores Consists of paper cores made from either chipboard and/or linerboard, single or multiple plies. Metal or plastic end caps, wood plugs, and textile residues are not acceptable in this grade Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 5% (15) Used Brown Kraft Consists of used brown kraft bags free of objectionable liners and original contents. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (16) Mixed Kraft Cuttings Consists of new brown kraft cuttings, sheets and bag scrap free of stitched paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (17) Carrier Stock Consists of printed or unprinted, unbleached new beverage car- riersheets and cuttings. May contain wet strength additives. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (18) New Colored Kraft Consists of new colored kraft cuttings, sheets and bag scrap, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (19) Grocery Bag Scrap (KGB) Consists of new brown kraft bag cuttings, sheets and misprint bags. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (20) Kraft Multi-Wall Bag Scrap Consists of new brown kraftmulti-wall bag cuttings, sheets, and misprint bags, free of stitched papers. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (21) New Brown Kraft Envelope Cuttings Consists of new unprinted brown kraft envelopes, cuttings or sheets. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (22) Mixed Groundwood Shavings Consists of trim of magazines, catalogs and similar printed matter, not limited with respect to groundwood or coated stock, and may contain the bleed of cover and insert stock as well asbeater-dyed paper and solid color printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (23) Telephone Directories Consists of clean telephone directories printed for or by tele- phonedirectory publishers. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% Total Outthrows may not exceed 2% SCRAP SPECIFICATIONS CIRCULAR 2007 (24) White Blank News (WBN) Consists of unprinted cuttings and sheets of white newsprint or other uncoated white groundwood paper of similar quality. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (25) Groundwood Computer Printout (GW CPO) Consists of groundwood papers which are used in forms manu- facturedfor use in data processing machines. This grade may contain colored stripes and impact or nonimpact (e.g., laser) computer printing. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (26) Publication Blanks (CPB) Consists of unprinted cuttings or sheets of white coated or filled groundwood content paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (27) Flyleaf Shavings Consists of trim from magazines, catalogs and similar printed matter. May contain the bleed of cover and insert stock to a maximum of 10% dark colors. Beater-dyed paper may not exceed 2%. Shavings of novel news or newsprint grades may not be included in this grade. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (28) Coated Soft White Shavings (SWS) Consists of unprinted, coated, and uncoated, shavings and sheets of white groundwood-free printing paper. May contain a small percentage of groundwood. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (29) (Grade not currently in use) (30) Hard White Shavings (HWS) Consists of shavings or sheets of unprinted, untreated white groundwood-free paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (31) Hard White Envelope Cuttings (HWEC) Consists ofgroundwood-free cuttings, shavings or sheets of unprinted, untreated and uncoated white envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (32) (Grade not currently in use) (33) New Colored Envelope Cuttings Consists ofgroundwood-free cuttings, shavings, or sheets of untreated, uncoated bleachable colored envelope paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (34) (Grade not currently in use) (35) Semi Bleached Cuttings Consists of sheets and cuttings of unprinted, untreated, groundwood-free paper such as file folder stock, manila tabu- latingcard trim, untreated milk carton stock, or manila tag. Prohibitive Materials None permitted Total Outthrows may not exceed 2% Paper Stock Export Transactions (37) Sorted Office Paper (SOP) Consists of paper, as typically generated by offices, containing primarily white and colored groundwood-free paper, free of unbleached fiber. May include a small percentage of ground- wood computer printout and facsimile paper. Prohibitive Materials may not exceed 2% Total Outthrows may not exceed 5% (38) Grade not currently in use) (39) Manifold Colored Ledger (MCL) Consists of sheets, shavings, and cuttings ofindustrially-gener- ated printed or unprinted colored or white groundwood-free paper. All stock must be uncoated and free of nonimpact print- ing. Apercentage of carbonless paper is allowable. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (40) Sorted White Ledger (SWL) Consists of uncoated, printed or unprinted sheets, shavings, guillotined books, and cuttings of white groundwood-free ledger, bond, writing, and other paper which has similar fiber and filler content. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (41) Manifold White Ledger (MWL) Consists of sheets, shavings, and cuttings ofindustrially-gener- ated printed or unprinted white groundwood-free paper. All stock must be uncoated and free of nonimpact printing. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (42) Computer Printout (CPO) Consists of white groundwood-free paper in forms manufac- turedfor use in data processing machines. This grade may contain colored stripes and impact ornon-impact (e.g. laser) computer printing, and may contain no more than 5% ground- wood inthe pack. All stock must be untreated and uncoated. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (43) Coated Book Stock (CBS) Consists of coated groundwood-free paper, printed or unprint- ed insheets, shavings, guillotined books and cuttings. A rea- sonablepercentage of paper containing fine groundwood may be included. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (44) Coated Groundwood Sections (CGS) Consists of printed, coated groundwood paper in sheets, sec- tions,shavings orguillotined books. This grade may not include news quality groundwood paper. Prohibitive Materials None permitted Total Outthrows may not exceed 2% (45) Printed Bleached Board Cuttings Consists ofgroundwood-free printed bleached board cuttings, free from misprint sheets, cartons, wax, greaseproof lamina- tion,gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed 1/2 of 1% Total Outthrows may not exceed 2% (36) Grade not currently in use) Paper Stock Export Transactions (46) Misprinted Bleached Board Consists ofgroundwood-free misprint sheets and cartons of bleached board, free from wax, greaseproof lamination, gilt, and inks, adhesives or coatings that are insoluble. Prohibitive Materials may not exceed 1% Total Outthrows may not exceed 2% (47) Unprinted Bleached Board Consists ofgroundwood-free unprinted, untreated bleached board cuttings, sheets or rolls, free from wax, greaseproof lam- inationand adhesives or coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (48) #1 Bleached Cup Stock (#1 Cup) Consists of untreated cuttings or sheets of coated or uncoated cup base stock. Cuttings with slight bleed may be included. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (49) #2 Printed Bleached Cup Stock (#2 Cup) Consists of printed, untreated formed cups, cup die cuts, and misprint sheets of coated or uncoated cup base stock. Glues must be water soluble. Must be free of wax, poly, and other coatings that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% (50) Unprinted Bleached Plate Stock Consists ofgroundwood-free bleached coated or uncoated, untreated and unprinted plate cuttings and sheets. Prohibitive Materials None permitted Total Outthrows may not exceed 1/2 of 1% (51) Printed Bleached Plate Stock Consists ofgroundwood-free bleached coated or uncoated, untreated printed plates and sheets. Must be free of coatings or inks that are insoluble. Prohibitive Materials None permitted Total Outthrows may not exceed 1% INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Specialty Grades The grades listed below are produced and traded in carload and truckload quantities throughout the United States, and because of certain characteristics (i.e., the presence of wet strength, polycoatings, plastic, foil, carbon paper, hot melt glue), are not included in the regular grades of paper stock. However, it is recognized that many mills have special equip- mentand are able to utilize large quantities of these grades. Since many paper mills around the world do use these special- tygrades, they are being listed with appropriate grade num- bersfor easy reference. The Paper Stock Industries Chapter of ISRI is not establishing specific specifications, which would refer to such factors as the type of wet strength agent used, the percentage of wax, the amount of polycoating, whether it is on top of or under the printing, etc. The specification for each grade should be deter- mined between Buyer and Seller, and it is recommended that purchase be made based on sample. These specialty grades are as follows: 1-S White Waxed Cup Cuttings 2-S Printed Waxed Cup Cuttings 3-S Plastic Coated Cups 4-S Polycoated Bleached Kraft-Unprinted 5-S Polycoated Bleached Kraft-Printed 6-S Polycoated Milk Carton Stock 7-S Polycoated Diaper Stock 8-S Polycoated Boxboard Cuttings 9-S Waxed Boxboard Cuttings 10-S Printed and/or Unprinted Bleached Sulphate Containing Foil 11-S Waxed Corrugated Cuttings 12-S Wet Strength Corrugated Cuttings 13-S Asphalt Laminated Corrugated Cuttings 14-S Beer Carton Scrap 15-S Contaminated Bag Scrap 16-S Insoluble Glued Free Sheet Paper and/or Board (IGS) 17-S White Wet Strength Scrap 18-S Brown Wet Strength Scrap 19-S Printed and/or Colored Wet Strength Scrap 20-S File Stock 21-S New Computer Print Out 22-S Ruled White 23-S Flyleaf Shavings Containing Hot Melt Glue 24-S Carbon Mix 25-S Books with Covers 26-S Unsorted Tabulating Cards 27-S Colored Tabulating Cards 28-S Carbonless Treated Ledger 29-S (Not currently in use) 30-S Plastic Windowed Envelopes 31-S Textile Boxes 32-S Printed TMP 33-S Unprinted TMP 34-S Manila Tabulating Cards 35-S Sorted Colored Ledger SCRAP SPECIFICATIONS CIRCULAR 2007 Guidelines for Plastic Scrap: P-2007 Baled Recycled Plastic Scrap Commercial Guidelines General Information Commercial Guidelines for Baled Recycled Plastic Scrap were developed to provide industry-wide quality standards. These standards will facilitate commodity trading of these materials. They will also focus suppliers of such material on the quality requirements of their customers. Product These guidelines are designed with the potential for dealing with all recycled plastic in bale form. Initial specifications refer only to bottles. The code framework allows for generation of guidelines for all types of plastic packaging materials (includ- ing rigids and flexibles) with room for expansion to other plas- ticproducts and resins including those which are used to produce durable goods. Guidelines for those products maybe added at a later date. Codes Codes for baled recycled plastics consist of a prefix letter, three digits and two suffix letters. The prefix letter "P"precedes all codes and designates "plastic" material. The first digit corre- sponds tothe SPI resin identification code system and desig- natesthe primary plastic material. The second digit describes the plastic product category. The third digit defines the color/appearance of the product. The first suffix letter indicates the type of recycled plastic. The second suffix letter indicates thesource of the recycled plastic product. (See Table l.) Bale Density Bales shall be compressed to a minimum density of 10 pounds per cubic foot and a maximum density to be determined by individual contract between Buyerand Seller. Increased densi- tymay improve transportation efficiency, but over-compres- sionmay adversely affect the ability of a Buyer to separate, sort, and reprocess the material. Prohibited Material Certain materials are understood to be specified as "prohibit- ed."Such materials will render the bale "non-specification„ and may cause some customers to reject the entire shipment. These may include plastic materials which have a deleterious effect on each other when reprocessed, and materials such as agricultural chemicals, hazardous materials, flammable liquids and/or their containers, and medical waste. Liquids Plastic containers/materials should be empty and dry when baled. The bale should be free of any free flowing liquid of any type. General Shipments should be essentially free of dirt, mud, stones, grease, glass, and paper. The plastic must not have been dam- aged by ultraviolet exposure. Every effort should be made to store the material above ground and under cover. A good faith effort on the part of the supplier will be made to include only rinsed bottles which have closures removed. Definitions for Plastic Materials Rigid Plastic Container A package (formed or molded container) which maintains its shape when empty and unsupported. Plastic Bottle A rigid container which is designed with a neck that is smaller than the body. Normally used to hold liquids and emptied by pouring. Plastic Film A thin flexible sheet which does not hold a particular shape when unsupported. Bale Tying Material Bale wires, ties, or straps shall be made of non-rusting or cor- roding material. Bale Integrity Bale integrity must be maintained through loading, shipping, handling, and storage. Distorted or broken bales are difficult to handle. They are unacceptable and may result in downgrading, rejection, or charge back. Allowable Contamination Unspecified materials must not exceed 2% of total bale weight. Bales which contain over 2% will be subjected to reduction in the contracted price of the material as well as charges for disposal of the contaminants. The reduced per- centagewill vary depending upon the amount and type of con- tamination.Quality ofthe baled plastic is the primary factor which determines the value. Recycled Plastic Plastics composed of either post-consumer or recovered mate- rial orboth. Recovered Plastic Plastic materials which have been recovered or diverted from the solid waste stream. Does not include materials generated from and commonly reused within an original manufacturing process. Post-Consumer Products generated by a business or consumer that have served their intended end use and have been separated or diverted from the solid waste stream for the purpose of recycling. Guidelines for Plastic Scrap INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Baled Recycled Plastic Commercial Guidelines Coding System POOOXX The coding system for baled recycled plastic consists of athree- The second digit describes the plastic/product category. digit number with a prefix letter "P"and atwo-letter suffix. The third digit defines the color/appearance of the product. The prefix "P"designates the category of Plastics and differenti- The first suffix letter indicates the type of recycled plastic. ates the code from similar codes for metals and other materials. The first digit corresponds to the SPI resin identification code The second suffix letter indicates the source of the recycled system and designates the primary plastic material. plastic product. Coding Key: P 0 0 0 X X Plastic Resin Code Product Color Type Source 0 Mixed Resins (1-7) 1 PET 0-Bottles 0-Mixture P-Post Consumer M-Municipal 2 HDPE 1-Rigids 1-Natural 3 PVC R-Recovered I-Industrial 4 LDPE 2-Films 2-Pigment/Dyed 5 PP C-Commercial 6 PS 3-9 To be assigned 3-9 Designated S-Institutional within each category 7 Other 8 To be assigned 9 To be assigned Baled Plastic Material Identification Codes Series Code Resin Categories Series Code Resin Categories P-100 Series-PET P-100 PET Mixed Bottles P-500 Series-PP P-500 PP Mixed Bottles P-101 PET Clear Soda Bottles P-501 PP Natural Bottles P-102 PET Green Soda Bottles P-502 PP Pigmented Bottles P-103 PET Mixed Clear & Green Soda Bottles P-600 Series-PS P-600 PS Mixed Bottles P-601 PS Natural Bottles P-104 PET Custom Bottles P-602 PS Pigmented Bottles P-110 PET Mixed Rigid Containers P700 Series Other/Code7 P-200 Series-HDPE P-200 HDPE Mixed Bottles P-700 OTHER Mixed Bottles P-201 HDPE Natural Bottles P-701 OTHER Natural Bottles P-202 HDPE Pigmented Bottles P-702 OTHER Pigmented Bottles P-300 Series-PVC P-300 PVC Mixed Bottles P-000 Series-Mixed resins (Codes 1-7) P-301 PVC Natural Bottles P-000 MIXED Mixed Bottles P-302 PVC Pigmented Bottles P-001 MIXED Natural Bottles P-002 MIXED Pigmented Bottles P-400 Series-LDPE P-400 LDPE Mixed Bottles P-401 LDPE Natural Bottles NOTE: The existence of a code category does not imply the P-402 LDPE Pigmented Bottles existence of a market for the material. These are representative code c ategories. Other categories may be developed as the need arises. SCRAP SPECIFICATIONS CIRCULAR 2007 Commercial Guideline Baled Recycled Plastic Standard P-100 Resin: PET MIXED Product: Bottles Only Category: Mixed soft drink, liquor, edible oil, etc. bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste No freeflowingliquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-101 Resin: PET CLEAR Product: Bottles Only Category: Beverage containers only (1, 2, 3 liter, l6 oz. soft drink bottles) Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~6 months unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-102 Resin: PET GREEN Product: Bottles Only Category: Beverage containers only (1, 2, 3 liter, l6 oz. soft drink bottles) Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles Guidelines for Plastic Scrap Commercial Guideline Baled Recycled Plastic Standard P-103 Resin: PET CLEAR and GREEN Product: Bottles Only Category: Beverage containers only (1, 2, 3 liter, l6 oz. soft drink bottles) Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-104 Resin: PET CUSTOM Product: Bottles and Jars Only Category: Mixed liquor, edible oil, peanut butter, etc. bottlesljars Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-110 Resin: PET MIXED Product: Rigid Containers Category: Mixed bottles, jars, tubs, trays, etc. Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Guidelines for Plastic Scrap Commercial Guideline Baled Recycled Plastic Standard P-200 Resin: HDPE MIXED Product: Bottles Only Category: Mixed household HDPE bottles (detergent, shampoo, household products, milk, etc.) Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-201 Resin: HDPE NATURAL Product: Bottles Only Category: Milk, water, and juice (quart, ~ gallon, and 1 gallon bottles) Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. Minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-202 Resin: HDPE PIGMENTED Product: Bottles Only Category: Mixed pigmented household HDPE bottles (detergent, shampoo, household products, etc.) Type: Source: Bale Properti es: Dimension: 72' maximum Bulk Density: l0 Ibslcuff. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with UV protective materials INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-300 Resin: PVC MIXED Product: Bottles Only Category: Mixed clear and pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-301 Resin: PVC NATURAL Product: Bottles Only Category: Clear Bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-302 Resin: PVC PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures SCRAP SPECIFICATIONS CIRCULAR 2007 Commercial Guideline Baled Recycled Plastic Standard P-400 Resin: LDPE MIXED Product: Bottles Only Category: Mixed natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-401 Resin: LDPE MIXED Product: Bottles Only Category: Natural Bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-402 Resin: LDPE PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Guidelines for Plastic Scrap Commercial Guideline Baled Recycled Plastic Standard P-500 Resin: PP MIXED Product: Bottles Only Category: Mixed natural and pigmented bottles Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-501 Resin: PP NATURAL Product: Bottles Only Category: Natural Bottles Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-502 Resin: PP PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Guidelines for Plastic Scrap Commercial Guideline Baled Recycled Plastic Standard P-600 Resin: PS MIXED Product: Bottles Only Category: Mixed clear and pigmented bottles Type: Source: Bale Properti es: Dimension: 72" maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-601 Resin: PS NATURAL Product: Bottles Only Category: Clear Bottles Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-602 Resin: PS PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properti es: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plastic or non-plastic material Dirt: Essentiallyfreeof dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~6 months unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Commercial Guideline Baled Recycled Plastic Standard P-700 Resin: CODE #7-OTHER MIXED Product: Bottles Only Category: Mixed natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-701 Resin: CODE #7-OTHER NATURAL Product: Bottles Only Category: Natural bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with UV protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-702 Resin: CODE #7-OTHER PIGMENTED Product: Bottles Only Category: Pigmented Bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contaminatio n: Total allowable: 2% Type: Non-specified plasticor non-plastic material Dirt: Essentially free of dirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No free flowing liquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures SCRAP SPECIFICATIONS CIRCULAR 2007 Commercial Guideline Baled Recycled Plastic Standard P-000 Resin: MIXED RESINS (Coded 1 through 7)-MIXED COLOR Product: Bottles Only Category: Natural and pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticornon-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-001 Resin: MIXED RESINS (Coded 1 through 7)-NATURAL Product: Bottles Only Category: Natural bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu. ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticornon-plastic material Dirt: Essentiallyfree ofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Commercial Guideline Baled Recycled Plastic Standard P-002 Resin: MIXED RESINS (Coded 1 through 7)-PIGMENTED Product: Bottles Only Category: Pigmented bottles Type: Source: Bale Properties: Dimension: 72"maximum Bulk Density: l0 Ibslcu ft. minimum Strapping: Non-rusting material Integrity: Must be maintained through shipping, unloading & storage Contamination: Total allowable: 2% Type: Non-specified plasticornon-plastic material Dirt: Essentiallyfreeofdirt, mud &stones Haz. Mat.: No hazardous or medical waste Moisture: No freeflowingliquid Storage: Outdoor: ~1 month unless covered with Uv protective materials General: Good faith effort to rinse bottles and remove closures Guidelines for Plastic Scrap INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. Guidelines for Electronics Scrap: ES-2007 Electronics Scrap Commercial Guidelines for Electronics Scrap were developed to provide industry-wide quality standards. These standards will facilitate commodity transactions domestically and inter- nationally. Transactions covering shipments to or from other countries may be in accordance with these standards and may be modified by mutual agreement between Buyer and Seller. Electronic Scrap Definitions The following E-Recycling definitions will facilitate a more con- sistentlanguage for both domestic as well as international transactions. Consumer electronic equipment including: Radio sets Television sets Video cameras Video recorders Eli-h recorders Audio amplifiers Musical instruments and other products or equipment for the purpose of recording or reproducing sound or images, including signals or other technologies for the distribution of sound and image by telecommunica- tions "END-OF-LIFE ELECTRONIC PRODUCTSrr EOL Electronic Products are either obsolete for their intended purpose or no longer useful by the current user and lack any significant market value as an operational unit. These products are represented by any of the following categories ofelectron- icproducts: IT and telecommunications electronic equipment including: Centralized data processing: Mainframes Minicomputers Printer units Personal computing: Personal computers (CPU. mouse, screen and keyboard included) Laptop computers (CPU, mouse, screen and keyboard included) Notebook computers Notepad computers Printers Copying equipment Electrical and electronic typewriters Pocket and desk calculators Other products and equipment for the collection, storage, processing, presentation or communication of informa- tion byelectronic means User terminals and systems Facsimile Telex Telephones Pay telephones Cordless telephones Cellular telephones Answering systems Other products or equipment for transmitting sound, images or other information by telecommunications Toys, leisure and sports electronic equipment including: Electric trains or car racing sets Hand-held video game consoles Video games Computers for biking, diving, running, rowing, etc. Sports equipment with electric or electronic components Coin slot machines Medical devices (except all implanted and infected products and radioactive components) including: Radiotherapy equipment Cardiology Dialysis Pulmonary ventilators Nuclear medicine Laboratory equipment or in-vitro diagnostics Analyzers Freezers Fertilization tests Other appliances for detecting, preventing, monitoring, treating, or alleviating illness, injury or disability Monitoring and control instruments including: Smoke detectors Heating regulators Thermostats Measuring, weighing or adjusting appliances for household or as laboratory equipment Other monitoring and control instruments used in industri- alinstallations (e.g. Ira control panels) "E-Recycling" E-Recycling is any process by which End-of-Life (EOL) electron- icproducts which would otherwise become solid waste are col- lected,separated, reused or processed and returned to use in the form of raw materials or products. "E-Demanufacturing" Demanufacturing is the process of separating EOL electronic products (electronic materials) into metallic and non-metallic parts that can be reused or recycled. "E-Dismantler" Dismantler is a person who engages in the manual demanufac- turing of EOL electronic products (electronic materials) to reuse or recycle components and commodities contained within. SCRAP SPECIFICATIONS CIRCULAR 2007 "E- Dismantling" Dismantling is the manual demanufacturing of EOL electronic products (electronic materials) to reuse or recycle components and commodities contained within. "E- Processor" Processor is a person who engages in the mechanical demanu- facturing of EOL electronic products (electronic materials) to reuse or recycle various commodities contained within. "E- Processing" Processing is the mechanical demanufacturing of EOL elec- tronicproducts (electronic materials) to recover various com- moditiescontained within. "E- Broker" Broker is a person who engages in the buying, selling, and trading of electronic products (electronic materials) without demanufacturing. "E- Brokering" Brokering is the buying, selling, and trading of electronic prod- ucts (electronic materials) without demanufacturing. ELECTRONICS SCRAP METALS-ESM ESM 1-Triple-Mixed Aluminum Breakage Shall consist of old sheet, cast, clips, punchings, bare wire and cable, painted sheet or cast of two or more alloys, free from excessive corrosion, oil, dirt and oxidation. Free of all fluids, gases, drosses, sweepings and hazardous materials such as mercury switches. All foreign attachments, non-metallics, iron, and extraneous materials are deductible. Should be sold on a recovery basis or by special arrangements with purchaser. Heavy Breakage: 20%-45% Aluminum content Medium Breakage: 46%-60% Aluminum content Light Breakage: 61%-80% Aluminum content ESM 2-Depot-Mixed Copper/Precious Metals May include any whole or partially demanufactured EOL elec- tronicproducts that are destined for a recycling processing operation. Material may contain printed circuit boards, ribbon cable, monitor yokes and other copper and/or precious metal bearing components. Final acceptance subject to agreement between Buyer and Seller. ESM 3-Dallas-Shredded Copper/Precious Metals Shredded copper/precious metal bearing from an end of life electronic products (EOLEP) shredding operation, with the majority of iron and aluminum removed. Material may contain plastic. The size will be less than one inch and the material will be free of mercury, toner, and batteries. Typically sold on a recovery basis, subject to terms between the Buyer and Seller. ESM 4-Dallas 5-Shredded Copper/Precious Metals Shredded copper/precious metal bearing from an end of life electronic products (EOLEP) demanufacturing operation. Material may contain large quantities of steel, aluminum and plastic. Pieces will be greater than one inch but less than 5 inches. Material will be free of mercury, toner, and batteries. Typically sold on a recovery basis, subject to terms between the Buyerand Seller. ESM 5-Druid-Insulated Copper Wire Scrap Shall consist of copper wire scrap with various types of insula- tion. To besold on a sample or recovery basis, subject to agreement between Buyer and Seller. Guidelines for Electronics Scrap ESM 6-Brant-Fragmentizer Aluminum Scrap (from EOL Electronic Products Shredders) The material, as received, must be dry and not contain more than 3% maximum free zinc, l% maximum free magnesium, and 1.5% maximum free iron and stainless. Not to contain more than a total 5%maximum ofnon-metallics, of which no more than 1% shall be rubber and plastics. To be free of exces- sivelyoxidized material, airbag canisters, or any sealed or pres- surized items. Anyvariation to be sold by special arrangement between Buyer and Seller. ESM 7-Marco-Recyclable Concentrates Of Shredded Mixed Nonferrous Scrap Metal in Pieces-Derived From Fragmen- tizers For Further Separation of Contained Materials Shall be made up of a combination of the nonferrous metals: aluminum, copper,lead, magnesium,stainlesssteel, nickel tin, and zinc, in elemental or alloyed (solid) form. The percentage of each of these metals within the nonferrous concentrate shall be subject to agreement between Buyer and Seller, may vary from shredder to shredderand may, insomecases, be zero for a particular metal. Shall be obtained by air separation, flotation, screening, eddy current, other segregation tech- nique(s) or acombination ofthe same. Shall have passed one or more magnets to reduce or eliminate free iron and/or iron attachments. Shall be free of radioactive material, dross or ash. May be screened to permit description by specific size ranges. May contain high density non-metallics such as rock, glass, rubber, plastic and wood. Items of exclusion, inclusion or limitation not set out in the above specifications, such as mois- tureand free iron and/or attachments or the presence or absence of other metals, are subject to agreement between Buyer and Seller. Material to be traded under this guideline shall be identified as Marco with a number to follow indicating the estimated percentage nonferrous metal content of the material (e.g. Marco 63-means the material contains approxi- mately 63% nonferrous metal content). ELECTRONICS SCRAP GLASS-ESG ESG 1-Jimbo-Intact CRT's Intact CRT's with or without the steel implosion band, Copper yoke must be removed. Material must be free of projection lenses with oil or aluminum frame. ESG 2-Jamers-Furnace Grade CRT Glass Furnace Grade CRT Glass-Plastic-0.50% by weight and 1/8" maximum size, Aluminum-0.25%byweight and 1/8" maximum size, Iron-5.0%byweight and 6"maximum size, Copper-2.0% byweight and 3"maximum size. Glass shall be the balance and 6" maximum in size. Any variation to be sold by special arrangement between Buyer and Seller. ESG 3-Jacamo-Sinter Grade CRT Glass Sinter Grade CRT Glass-Plastic-0.50%byweight and 1/8" max- imumsize,Aluminum-0.50%byweight and'/8" insize, Iron-2.0%byweight and'/s"insize, Copper-1.0%byweight and'/8"insize. Glass to be the balance byweight and shall have a maximum size of 1/4". At least 50% of the Glass Com- ponentmust beless than 1/8"insize. Guidelines for Electronics Scrap ESG-CRT GLASS GULLET CRT Glass Gullet Specifications-This specification includes CRT's that are cutlet size of approximately 3 to 5 inches and prepared for glass to glass recycling. ESG 4-CRT 1 Dirty Mixed Gullet-when the cutlet contains both panel and funnel glass. ESG 5-CRT 2 Dirty Mixed Gullet with Metals-when the cul- letcontains both panel and funnel glass with mixed metals. ESG 6-CRT 3 Dirty Funnel Gullet-when the Gullet is only funnel glass. Electronics Scrap Plastics-ESP Loose Plastics-Postconsumer Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-1 Loose Mixed Plastics Plastic parts from electrical and electronic products Residential or commercial All All Varies Nla Gaylordsl or larger bulk All No haz mat or med waste No free-flowing liquid Fr or non-fr ~2%of mat'Is byweight ~2%of mat'Is byweight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. ESG 7-CRT 4 Dirty Panel Cutlet-when the cutlet is only pan- elglass. ESG 8-CRT 5 Clean Mixed Gullet-when the panel and funnel cutlet have been cleaned of all coatings, frit and metals. ESG 9-CRT 6 Clean Funnel Gullet-when the funnel cutlet has been cleaned of all coatings, frit and metals. ESG 1O-CRT 7 Clean Panel Gullet-when the panel cutlet has been cleaned of all coatings, frit and metals. ESP-2 Loose TV Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight from disassembled TV sets All Varies Nla Gaylordsl or larger bulk All No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight X10%of mat'Is byweight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-3 ESP-4 Loose Computer Plastics Loose Single-Resin Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight from disassembled PC monitors, CPUs, printers, & keyboards All Varies Nla Gaylordsl or larger bulk Plastic parts from electrical and electronic products Residential or commercial > 90%byweight single target resin type ABS, PC, PCIABS, HIPS, PPE, PVC Varies Nla Gaylordsl or larger bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight SCRAP SPECIFICATIONS CIRCULAR 2007 Loose Plastics-Postindustrial Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-5 Loose Mixed Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory, or other plastic scrap All Varies Nla Gaylordsl or larger bulk All No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2%of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight ESP-6 Loose TV Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving TV manufacturers Rejected parts, excess inventory, or other plastic scrap All Varies Nla Gaylordsl or larger bulk All No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0%of mat'Is byweight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Guidelines for Electronics Scrap ESP-7 ESP-8 Loose Computer Plastics Loose Single-Resin Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving PC & peripherals manufacturers Rejected parts, excess inventory, or other plastic scrap All Varies Nla Gaylordsl or larger bulk Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory, or other plastic scrap Minimum 95%byweight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Varies Nla Gaylordsl or larger bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0%of mat'Is byweight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Baled Plastics-Postconsumer Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-9 Baled Mixed Plastics Plastic parts from electrical and electronic products Residential or commercial All All Minimum 20 Ibslcu ft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-10 Baled TV Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight from dissembled TV sets All Minimum201bslcuft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-11 ESP-12 Baled Computer Plastics Baled Single-Resin Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight from dissembled PC monitors, CPUs, printers, & keyboards All Minimum201bslcuft Maximum dimension 72" Strapped Plastic parts from electrical and electronic products Residential or commercial > 90%byweight single target resin type ABS, PC, PCIABS, HIPS, PPE, PVC Minimum201bslcuft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight Guidelines for Electronics Scrap Baled Plastics-Postindustrial Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-13 Baled Mixed Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory or other plastic scrap All Minimum 8 Ibslcu ft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2%of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight ESP-14 Baled TV Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving Tv manufacturers Rejected parts, excess inventory or other plastic scrap All Minimum8lbslcuft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0%of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. ESP-15 Baled Computer Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving PC & peripherals manufacturers Rejected parts, excess inventory or other plastic scrap All Minimum 8 Ibslcu ft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight ESP-16 Baled Single-Resin Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory, or other plastic scrap Minimum 95%byweight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Minimum8lbslcuft Maximum dimension 72" Strapped Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Shredded Plastics-Postconsumer Sources ESP-17 Shredded Mixed Plastics Material Plastic parts from electrical and electronic products Source Residential or commercial Material origin All Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total Non-plastics All Minimum 15 Ibslcu ft 4"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~2%of mat'Is byweight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-18 Shredded TV Plastics Plastic parts from electrical and electronic products Residential orcommercial > 90%byweight from dissembled Tv sets All Minimum151bslcuft 4"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2%of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-19 Shredded Computer Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight from dissembled PC monitors, CPUs, printers, & keyboards All Minimum 15 Ibslcu ft 4"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 10% cumulative by weight ESP-20 Shredded Sorted Plastics Plastic parts from electrical and electronic products Residential or commercial > 90%byweight single target resin type Minimum 95%byweight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Minimum151bslcuft 4"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~2%of mat'Is byweight ~ 2% of mat'Is by weight ~ 10% cumulative by weight SCRAP SPECIFICATIONS CIRCULAR 2007 Shredded Plastics-Postindustrial Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-21 Shredded Mixed Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor moulders Rejected parts, excess inventory, or other plastic scrap All Minimum 10 Ibslcu ft 4"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2%of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight ESP-22 Shredded TV Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor moulders serving Rejected parts, excess inventory, or other plastic scrap All Minimum101bslcuft 4"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0%of mat'Is byweight ~ 2% of mat'Is by weight ~2%of mat'Is byweight ~ 2% cumulative by weight ESP-23 Shredded Computer Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor mouldersserving PC TV manufacturers Rejected parts, excess inventory, or other plastic scrap All Minimum101bslcuft 4"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Guidelines for Electronics Scrap ESP-24 Shredded Sorted Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor moulders & peripherals manufacturers Rejected parts, excess inventory, or other plastic scrap Minimum 95%byweight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Minimum101bslcuft 4"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 2% cumulative by weight Granulated Plastics-Postconsumer Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-25 Granulated Mixed Plastics Plastic parts from electrical and electronic products Residential or commercial All All Minimum25lbslcuft 3I8"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight ESP-26 Granulated TV Plastic Plastic parts from electrical and electronic products Residential or commercial >90%bywtfrom disassembled TV sets All Minimum25lbslcuft 3I8"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight ESP-27 ESP-28 Granulated Computer Plastic Granulated Sorted Plastic Plastic parts from electrical and electronic products Residential or commercial > 90 %bywtfrom disassembled PC monitors, CPUs, printers,& keyboards All Minimum25lbslcuft 3l8"minus Gaylords or bulk Plastic parts from electrical and electronic products Residential or commercial > 90%byweight single target resin type ABS, PC, PCIABS, HIPS, PPE, PVC Minimum25lbslcuft 3I8"minus Gaylords or bulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 2% of mat'Is by weight ~ 2% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight Guidelines for Electronics Scrap Granulated Plastics-Postindustrial Sources Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics ESP-29 Granulated Mixed Plastics Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory or other plastic scrap All Minimum121bslcuft 3I8"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 0% of mat'Is by weight ~ 0% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight ESP-30 Granulated TV Plastic Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving TV manufacturers Rejected parts, excess inventory or other plastic scrap All Minimum121bslcuft 3I8"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 0% of mat'Is by weight ~ 0% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. ESP-31 ESP-32 Granulated Computer Plastic Granulated Sorted Plastic Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders serving PC & peripherals manufacturers Rejected parts, excess inventory or other plastic scrap All Minimum 12 Ibslcu ft 3I8"minus Gaylordsorbulk Plastic parts from electrical and electronic products Manufacturers, suppliers andlor molders Rejected parts, excess inventory or other plastic scrap Minimum 95% by weight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Minimum121bslcuft 3I8"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 0% of mat'Is by weight ~ 0% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr ~ 0% of mat'Is by weight ~ 0% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 0.5% of mat'Is by weight ~ 1% cumulative by weight Cleaned Granulated Plastics with Density Separation- Cleaned Granulated Plastics with Density Separation- PostconsumerSources Postindustrial Sources ESP-33 Cleaned Granulate w/Density Separation Material Source Material origin Plastic resin type Bulk density Size Shipping Quality Color Haz mat Moisture Flame retardant Contamination: Paintedlcoated Laminated Metals Dirt Total non-plastics Plastic parts from electrical and electronic products Residential or commercial Sources > 99% by weight single target resin type ABS, PC, PCIABS, HIPS, PPE, or PVC Minimum 25 Ibslcu ft 3I8"minus Gaylordsorbulk Light or mixed No haz mat or med waste No free-flowing liquid Fr or non-fr 0% of mat'Is by weight 0% of mat'Is by weight ~ 0.1% of mat'Is by weight ~ 0.1% of mat'Is by weight ~ 0.1% cumulative by weight ESP-34 Cleaned Granulate w/Density Separation Material Plastic parts from electrical and electronic products Source Manufacturers, suppliers andlor molders Material origin Rejected parts, excess inventory, or other plastic scrap Plastic resin type Minimum 99% by weight one of the following target resins: ABS, PC, PCIABS, HIPS, PPE, or PVC Bulk density Minimum 12 Ibslcu ft Size 3I8"minus Shipping Gaylordsorbulk Quality Color Light or mixed Haz mat No haz mat or med waste Moisture No free-flowing liquid Flame retardant Fr or non-fr Contamination: Paintedlcoated 0% of mat'Is by weight Laminated 0% of mat'Is by weight Metals ~ 0.1% of mat'Is by weight Dirt ~ 0.1% of mat'Is by weight Total non-plastics ~ 0.1% cumulative by weight SCRAP SPECIFICATIONS CIRCULAR 2007 Guidelines for Tire Scrap: TS-2007 Rubber From Scrap Tires General Guidelines Items not covered in the specifications, and any variations in the specification are subject to special arrangement between Buyer and Seller. Percentages listed below are by weight. Definitions Fines consist of materials that pass a 4.75 mm sieve. These materials may include rubber, fiber, inorganic and organic mat- ter,dirt, and other non-tire materials. Sizes will be determined by sieving. Suitable sieve sizes will be selected. Nest the sieves in order of decreasing size of opening from top to bottom and place the sample on the top sieve. Agi- tatethe sieves by hand or by mechanical apparatus fora suffi- cient period so that additional sieving does not result in substantial additional material passing through the sieves. TDM refers totire-derived material. TDM 3-6 At least 90% must be smaller than 4"; at least 75% must be larger than 1'/z"; at least 90% must be largerthan'/z"; at least 90% must not exceed 1" protrusion of steel; and maximum of5%fines. TDM 3-C At least 90% must be smaller than 4"; at least 75% must be larger than 1'/z"; at least 90% must be largerthan'/z";and maximum of5%fines. TDM 5-A All material must besmallerthan 8"; at Ieast90%must besmallerthan 6"; at least 50% must be larger than 3"; at least 90% must be larger than 1/2"; maximum of 1" protrusion of steel; and maximum of 1%fines. Rubber Primarily Used for civil Engineering TDM 2-A All material must be smaller than 4"; at least 90% must be smaller than 2'/z"; at least 50% must be larger than 1'/z"; at Ieast90%must be largerthan'/z"; maximum of/z" protrusion of steel; and maximum of 1%fines. TDM 2-B All material must be smaller than 4"; at least 90% must be smaller than 2'/z"; at least 50% must be larger than 1'/z"; at Ieast90%must be largerthan'/z"; at least 90% must not exceed 1" protrusion of steel; and maximum of 5%fines. TDM 2-C All material must be smaller than 4"; at least 90% must be smaller than 2'/z"; at least 50% must be larger than 1'/z"; at least 90% must be largerthan'/z";and maximum of 5%fines. TDM 3-A At least 90% must be smaller than 4"; at least 75% must be larger than 1'/z"; at least 90% must be larger than'/z"; maximum of ~" protrusion of steel; and maximum of 1%fines. TDM 5-B All material must besmallerthan 8"; at Ieast90%must besmallerthan 6"; at least 50% must be larger than 3"; at least 90% must be larger than'/z"; at least 90% must not exceed 2" protrusion of steel; and maximum of5%fines. TDM 5-C All material must besmallerthan 8"; at Ieast90%must besmallerthan 6"; at least 50% must be larger than 3"; at least 90% must be larger than'/z";and maximum of5%fines. TDM 8-A At least 90% must be smaller than 12"; at least 75% must besmallerthan 8"; at least 50% must be larger than 3"; at least 75% must be larger than 1'/z"; maximum of 2" protrusion of steel; and maximum of 1%fines. TDM 8-6 At least 90% must be smaller than 12"; at least 75% must besmallerthan 8"; at least 50% must be larger than 3"; at least 75% must be larger than 1'/z"; at least 90% must not exceed 2" protrusion of steel; and maximum of5%fines. Guidelines for Tire Scrap TDM 8-C At least 90% must be smaller than 12"; at least 75% must be smaller than 8"; at least 50% must be larger than 3"; at least75% must be larger than l'/z";and maximum of 5% fines. TDM 12-A At least 90% must be smaller than 18"; at least 50% must be larger than 6"; at least75% must be larger than l'/z"; maximum of 2" protrusion of steel; and maximum of 1% fines. TDM 12-B At least 90% must be smaller than 18"; at least 50% must be larger than 6"; at least75% must be larger than l'/z"; at least 90% must not exceed 2" protrusion of steel; and maximum of 5% fines. TDM 12-C At least 90% must be smaller than 18"; at least 50% must be larger than 6"; at least75% must be larger than l'/z";and maximum of 5% fines. INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. SCRAP SPECIFICATIONS CIRCULAR 2007 Scrap Specifications Circular 2007 Guidelines for Metals Transactions These Guidelines are intended as a reference to assist mem- bers incarrying out their business obligations in a manner consistent with accepted industry practices. While the Guide- linesare not obligatory, it is suggested that potential problems and misunderstandings may often be avoided by following these recommended procedures, in conjunction with ISRI's scrap descriptions. At times, the respective parties to a transaction maybe unaware of the differences in trading practices of the other party. This diversity of interpretation often leads to misunder- standings,disputes, and in some instances expensive lawsuits. It is with the objective of providing members the means of avoiding such friction that ISRI has published these Guidelines, which are based on those practices most common and current in the industry. On those points where it is impractical to provide recommen- dations, it is advised that the points be mutually agreed upon by the parties involved. Part I: Guidelines for Contracts A contract is an agreement between two or more parties to perform a legally enforceable act. Therefore, all contracts should be in writing and set forth in specific terms. Before signing a contract, one should carefully read and understand all terms of it. No discrepancies or ambi- guitiesshould exist at the time the contract is executed. If you receive a contract with terms that are objectionable, you should immediately notify the other party in writing of your objections. An attorney should be consulted when legal advice is needed. It should be kept in mind that if a dispute arises under acon- tract,and acourt is called in to interpret its terms, certain gen- eralrules will be applied. First, contracts will be construed as a "whole," and specific clauses will be subordinated to the con- tract'sgeneral intent. Second, the courts will construe words according to their "ordinary" meaning unless it is clearly shown that they were meant to be used in a technical sense. Also, where provisions appear to be inconsistent, the courts will determine whether some of the provisions are printed (indicating a form contract), as compared to others which are written or typed. The latter kinds of provisions will prevail. It should be remembered that where you and a Buyer (or Sell- er) have reached verbal agreement on a transaction, your fail- ure tosign and return a contract which is sent to you in confirmation of that verbal agreement may not relieve you of the obligations of the terms and conditions enumerated in that contract. These Guidelines were developed to cover routine transac- tions. It isessential that any unusual arrangements must be completely spelledout in acontract. With these factors in mind, the following list of items is enumerated as a Checklist for you to follow, either in the construction of a contract, or for the review of another party's contract proposal. We cannot overemphasizethe need foraccuracyand specificity. Checklist Items (BE SPECIFIC AT ALL TIMES) I. Parties to Agreement: Indicate full name and address of Buyer and Seller. Include name of individual person or persons involved. Buyer's and Seller's signatures are fundamental. II. Date of Contract: (a) Give date the initial agreement was reached (b) Give Contract Number. III. Description of Material: Use NF code names or clearly describe what is being traded. Any allowable quality variation to be so stated. Ex: "X percent moisture allowed" or "Minimum CU content to be X percent" or "X percent painted material allowed." IV. Quantity: State exact quantity expected and indicate allowable toler- ances orminimum/maximum limitations. Ex. "40,000 lbs. (5% More/Less allowed)" or "38,000 to 42,000 lbs." V. Packing: State type of packing allowable and restrictions if such are required. Ex: "Bales not to exceed 60 inches"; "Bales not to exceed 3,500 lbs." VI. Delivery: Show complete address of shipping or delivery point, including where applicable, specific rail siding or junction, forwarding warehouse, and party to be notified. Ex: "FOB (Actual Point of Shipment) Chicago, III."; "FOB (Actual Point of Delivery) St. Louis. Mo."; "FAS Baltimore Container Yard"; "C&F Tokyo. Japan." If these details cannot be furnished at the time of writ- ing ofcontract, itshould state "shipping/delivery instructions to follow." State means of conveyance to be employed. State size and type of truck, rail car, container ornumber ofship- mentsexpected orpermitted. VII. Shipment: Time allowed for shipment or delivery should be clearly stated. Ex: "Shipment by Jan.15, 2007 LATEST"; or "Delivery by Jan. 15, 2007." Indicate at whose option, Buyer's or Seller's, ship- mentshall be made in time period stated. VIII. Price: State price per unit. Ex: "$20.00/CWT"; "20.00 Cents/Pound„; "$400.00/Net Ton"; "$440.92/Metric Ton." and indicate where appropriate "Clean and Dry"; "Full Copper Content." If applica- ble,state exact processing, smelting, refining charge, or unit deductionsfor impurities. (Avoid the use of the word "penal- ties.") IX. Payment: Terms of payment should be explicit. Ex: "Net 30 days after shipment"; "Net 15 days after mill receipt." Avoid phrases such as "usual;" "Net 30;" "Net Cash." Documents required to effect Guidelines for Metals Transactions payment to be clearly stated. Ex: "Bill of Lading";"Invoice"; "Weight Certificate." State how payment shall be made. If there is discussion of compensation for delayed payments, it should be included in the contract. If Letter of Credit is called for as a means of payment, it is advisable that the terms to be included in the Letter of Credit also be stated in the contract. When applicable, contract should state whether Buyer or Seller is responsible for payment of taxes, duties, or any other levies to which a shipment could be subjected. Contract should state whether the Seller's or Buyer's weights shall govern the basis of settlement. X. Assignment: The contract may state whether the Buyer and/or the Seller has the right to assign the contract. If it does, it should empha- sizethat the obligation arising under the contract shall be equally binding on his assignee. XI. Notice: The Seller should specify how notice to be given under the contract should be received-i.e. by hand, by telegram, by certi- fied orregistered mail. One should also specify when notice is deemed to be received by the party to whom it is given. XII. Disclaimer of Warranties: Depending on the type of transaction, or the metal involved, the Seller may want to limit his liability by disclaiming any war- ranties ofinerchantability or offitness for a particular purpose. XIII. Default: The contract should contain a provision setting forth the events which would result in a default of the contract. This pro- visionmight also contain a clause stipulating damages and/or setting forth available remedies (i.e. specific performance) in the event a default does, in fact, occur. XIV. Force Majeure: This item is related to the item of default, as indicated in para- graph Xlll. Selleror Buyer may enumerate, eithergenerally or specifically, what events (i.e. strikes, fires, accidents) constitute circumstances beyond its control and thereby absolve him/her of any liability for damages or delay. XV. Non-Waiver: The Seller or Buyer should state in the contract that his/her failure to insist upon strict performance in any given instance shall not be construed as a waiver or relinquishment for the future of any of the terms, covenants and conditions contained therein. XVI. Claims: The Seller may specify that any claims involved in a metals transaction for contaminated materials, weight shortage, or for any other cause is waived bythe Buyer unless brought to the Seller's attention within a certain number of days after delivery. XVII. Arbitration and Applicable Law: The contract should set forth which state's or country's law will apply in the event of a legal dispute under the contract. It should also provide for arbitration procedure. (If ISRI Arbitra- tion isdesired, the contract should so stipulate.) XVIII. Benefit: The contract should stipulate on whom it is binding. For instance, the Seller or Buyer may want to specify that the con- INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. tract inures to the benefit of the parties, their legal representa- tives,successors and assignees. XIX. Entire Agreement: This provision is especially important in the area of metals transactions, which frequently involve extensive preliminary negotiations. A clause may be inserted into the contract stat- ingthat the contract constitutesthe parties' entire agreement and supersedes all prior agreements and understandings with respect to the subject matter of the contract. XX. Modification: A clause may be included in the contract stating that the con- tract's requirements can only be modified by a written instru- mentsigned by the parties ortheir respective agents. This insures that the parties' informal discussions will not later be construed as affecting an alteration of the contract. Part II: Packing, Weighing, Shipping and Receiving It is recommended that strict adherence to contract terms will minimize many of the potential problems in this area. If there is a question about any item, one should communicate with his/her Buyer/Sellerand clarifythe situation priorto shipping. Listed below are some specific guidelines to be used in avoid- ingthe most frequently reported problems. Packing All Shipments Seller's Responsibility: a. Pack in the manner and form agreed. Example: In sound bales, briquettes, boxes, pallets, drums, loose, etc. b. Be sure that Buyer agrees with your definition of words and phrases, i.e. Bale, Briquette, Coil, etc. as well as allowed dimensions and weights of such. c. Material and packages should be securely tied or support- ed sothat packages will hold in transit and normal han- dling. Buyer's Responsibility: a. Advise Seller of any specific prohibitions, i.e. type or method of packing, size or weight of pieces, units orpack- ages,etc. b. Be sure that Seller agrees with your definition of words and phrases, i.e. Bale, Briquette, Coil, etc., as well as allowed dimensions and weights of such. Weighing, Shipping and Receiving Truck Shipment Seller's Responsibility: a. Each package should be individually weighed and the entire truckload should be checkweighted for comparison. Reconcile or explain any differences. If truck is weighed during inclement weather or wind, make note of this on weight ticket. b. Trailers should bedrop-weighed (both empty and loaded). c. All equipment should be inspected before loading, and cleaned or repaired where necessary to avoid loss or spillage. d. Open top trucks or trailers should be tarped or covered. SCRAP SPECIFICATIONS CIRCULAR 2007 e. Vans and closed trailers should be sealed and seal num- bersindicated onall documents. f. If your customer requires appointments, make one in advance. Otherwise, as a courtesy, advise the Buyer of your anticipated delivery schedules. g. A complete manifest and packing list should accompany each shipment. This should clearly indicate the order num- ber,items shipped, number and type of packages of each commodity, as well as the gross, tare and net weights of each package. This detailed information should be put into an envelope and attached to the inside wall of the truck or van. If this cannot be done, give a complete set of papers to the driver to deliver with the original Bill of Lading cov- ering theshipment. At the very least, notify Buyer bytele- phone,telex orwire of these details on the day shipment leaves. h. Different lots should always be properly segregated and bulkheaded to avoid comingling. Each package should be tagged or marked to aid in proper identification and segre- gation atthe receiving point. i. Be aware that someone at the delivery point will have to unload the shipment. Pay particular attention to door areas to assure that material is loaded safely. Proper care should be taken to insure that the material can be unloaded in a safe and expedient manner. Buyer's Responsibility: a. If Seller requires appointment prior to pickup, make one in advance. Otherwise, as a courtesy, advise the Seller of your anticipated pickup schedule. b. Trailers should bedrop-weighed (both empty and loaded). c. Carefully check shipment advices and compare package count, seal numbers, weights. d. Prior to unloading, if a significant* weight difference is apparent, the Seller should be notified promptly and, if requested, another weight should be taken to determine if spillage or theft might have occurred. e. After unloading, promptly advise Seller of any significant* differences between advised and actual weights, segrega- tion,classification orquality. (Note: Refer to Part IV of the circular for recommended procedures in handling quality problems.) f. Truck or trailer should be completely unloaded including any spilled material which should be picked up, weighed and identified as spilled from original containers. Buyers should cooperate in every way to help minimize losses. Weighing, Shipping and Receiving Rail Shipment Seller's Responsibility: a. Each package should be individually weighed and the entire rail car should be checkweighted for comparison. Reconcile or explain any differences. If rail car is weighed during inclement weather or wind, make note of this on weight ticket. b. Railroad cars should be uncoupled and at rest (if possible) before weighing. Guidelines for Metals Transactions c. All equipment should be inspected before loading, and cleaned or repaired where necessary to avoid loss or spillage. d. Railroad cars should be sealed and seal numbers indicated on all documents. e. A complete manifest and packing list should accompany each shipment. This should clearly indicate the order num- ber,items shipped, number and type of packages of each commodity, as well as the gross, tare and net weights of each package. This detailed information should be put into an envelope and attached to the inside wall of the railroad car. If this cannot be done, mail a complete set of papers to the Buyer on the day shipment leaves. f. Different lots should always be properly segregated and bulkheaded to avoid comingling. Each package should be tagged or marked to aid in proper identification and segre- gation atthe receiving point. g. Be aware that someone at the delivery point will have to unload the shipment. Pay particular attention to door areas to assure that material can be unloaded in a safe and expedient manner. Buyer's Responsibility: a. Railroad cars should be uncoupled and at rest (if possible) before weighing. b. Carefully check shipment advices and compare package count, seal numbers, weights. c. Prior to unloading, if a significant* weight difference is apparent, the Seller should be notified promptly and, if requested, another weight should be taken to determine if spillage or theft might have occurred. d. After unloading, promptlyadvise Sellerof anysignificant* differences between advised and actual weights, segrega- tion,classification orquality. (Note: Refer to Part IV of the circular for recommended procedures in handling quality problems.) e. Rail car should be completely unloaded including any spilled material which should be picked up, weighed and identified as spilled from original containers. Buyer should cooperate in every way to help minimize losses. Weighing, Shipping and Receiving Export/Import Shipment Seller's Responsibility: a. Each package should be individually weighed and the entire container load should becheck-weighed for compar- ison. Ifcontainer isweighed during inclement weather or wind, make note of this on weight ticket. b. Container and chassis should bedrop-weighed, if possible, both empty and loaded. c. Prepare and send to Buyer a complete manifest and pack- inglist indicating the order number, items shipped, number and type of packages of each commodity, as well as the gross, tare and net weights of each package and the seal numbers. d. If shipment is against a Letter of Credit, pay strict atten- tion toall terms. Guidelines for Metals Transactions e. Place seals on all container doors and indicate seal num- bers ondocumentation. f. Material and packages should be properly stowed and braced to prevent movement during shipment. g. Be aware that someone at the delivery point will have to unload the shipment. Pay particular attention to door areas to assure that material is loaded safely. Proper care should be taken to insure that the material can be unloaded in a safe and expedient manner. Buyer's Responsibility: a. Container and chassis should bedrop-weighed, if possible, both empty and loaded. b. Carefully check shipment advices and compare package count, seal numbers, weights. c. Prior to unloading, if a significant* weight difference is apparent, the Seller should be notified promptly and, if requested, another weight should be taken to determine if spillage or theft might have occurred. Seller should be giv- enopportunity toappoint surveyor or representative to verify weights. d. After unloading, promptly advise Seller of any significant* differences between advised and actual weights, segrega- tion,classification orquality. (Note: Refer to Part IV of the circular for recommended procedures in handling quality problems.) e. Container should be completely unloaded including any spilled material which should be picked up, weighed and identified as spilled from original containers. Buyer should cooperate in every way to help minimize losses. *For purposes of this section, the meaning of the word "signifi- cant" shall be determined by agreement between Buyer and Seller, depending on the commodities and their values. Part III: Transportation Guide The mode and type of conveyance should be specified in the contract. If it has not been, then it is important that Buyer and Seller agree upon the mode and type to be used. These guide- lineswill assist in determining the appropriate means of trans- portation toemploy. A. Mode Truck/Trailer 1. Type: a. Dump b. Removable sides c. Van-open orclosed d. Dimensions of unit (20 ft., 40 ft., etc.) e. Determine iftruck/trailer capacity meets minimum weight specified on contract. B. Mode-Rail Car 1. Type: a. Box car or gondola b. Size of door opening, i.e. single or double door INSTITUTE OF SCRAP RECYCLING INDUSTRIES, INC. d. Dimensions of car (40 ft., 50 ft., 60 ft., etc.) e. Determine if rail car capacity meets minimum weight specified on contract. C. Export Shipments 1. Container: a. Type of container, i.e. closed, open-top, flat rack, Hi-cube, etc. b. Size of container (20 ft., 35 ft., 40 ft., 45 ft., etc.) c. Determine if container capacity meets minimum weight specified on contract. 2. Breakbulk Part IV: Rejections-Downgrades-Claims A brief explanation of these items will help one understand and implement the procedures recommended in this section. Rejections: Rejections can occur when a Buyer refuses to accept a shipment of material that does not conform to the description specified in the contract. Usually in such cases, the Buyer cannot utilize the material and the Seller is asked to remove the material from the Buyer's place of delivery. A rejection can occur prior to unloading, but often the cause of the problem cannot be determined until the material has been off loaded and graded. Any part, or all, of the shipment maybe subject to rejection. Downgrades: Downgrades can occur when all, or part, of the material in a shipment is not in conformity with the description specified in the contract. Often, in such cases, the Buyer can utilize the material and is willing to accept delivery of the material, subject to a price commensurate with its value. Claims: This term is used mostly inexport-import movements, and is used generically to encompass both rejections and downgrades, as well as weight shortages. Strict adherence to contract terms can minimize the common causes of these difficulties. However, if a problem arises, it should be given prompt attention and settlement should be attempted as quickly as is practical. It is essential that both parties cooper- ateand keep communications open to minimize expenses and to preserve the relationship. Negotiations should not be conflicting but mutually beneficial and fair. Listed below are some recom- mendedsteps to betaken when a problem arises. Domestic Shipments Buyer's Responsibilities: a. In the event of a rejection Buyer must notify Seller imme- diately bytelephone ortelex. IfSeller fails to respond with- intwo business days, Buyer may return material inmost prudent manner. Subject to contract provisions, Buyer should promptly advise Seller concerning replacement of rejected material. b. In the event of a downgrade Buyer must notify Seller immediately bytelephone ortelex and afford Seller an opportunity to inspect the material prior to its use. If mate- rial is to be inspected by Seller or his/her representative, Buyer should agree to a mutually convenient time to do so. c. Special type D.F, Hi-Cube, etc. SCRAP SPECIFICATIONS CIRCULAR 2007 c. Buyer must give Seller option of removing material if he/she does not agree to downgrade. (All costs ofunload- ingand reloading are for Seller's account.) Seller's Responsibilities: a. In the event of a rejection Seller should respond promptly and advise Buyer ofhis/her intentions. Seller must reply within two business days. Subject to contract provisions, he/she must advise Buyer promptly concerning replace- ment of rejected material. b. In the event of an unacceptable downgrade Seller must advise Buyer within two business days if he/she wishes to inspect material and agree upon a mutually convenient time to do so. c. If Sellerwishesto remove downgraded material from Buy- er'sdelivery point, he/she must advise Buyer promptly. (All costs of unloading and reloading are for Seller's account.) ISRI Arbitration Service ISRI established an arbitration service as a means to enable members to use arbitration to resolve disputes. ISRI arbitration is a voluntary procedure and must be agreed upon by both parties in the dispute. It is not required that both parties to the dispute be ISRI members. The complete procedure for arbitration is set forth in ISRI's "Rules for Arbitration," which are available from Association headquarters in Washington, D.C. The rules contain the neces- saryform that must be completed to initiate arbitration. ISRI treats all filings, awards, and proceedings as confidential. The rules are highlighted below: Anyone may propose arbitration in a dispute, though at least one party must be a member of the association. Both parties must agree to the arbitration by signing a "Submis- sion toArbitrate" form and agreeing to abide by the appli- cableArbitration Rules. 2. A panel of arbitrators has been established by the associa- tion.The arbitrators serve without compensation, except for reasonable expenses. The arbitration parties must draw their arbitrators from the panel. A maximum of three arbi- tratorscan beissued inany proceeding; the parties are encouraged to use a single arbitrator. 3. There is a specific schedule of fees listed in the "Rules for Arbitration." Each party must deposit with the association in advance $500 plus $500 for each arbitrator. The total deposit for each party thus is either $1,000 or $2,000, depending on whether one arbitrator is to be used or three. A portion of the fee is refundable if not required to defray arbitrators' costs. The arbitrators may require the losing party to reimburse the prevailing party for its share of these costs. Guidelines for Metals Transactions Export-import Shipments Buyer's Responsibility: a. In the event of a claim, time is of the essence and notifica- tionshould begiven toSeller within a reasonable period of time after arrival of vessel in receiving port. b. In the event of a claim, the material should be held intact until agreement has been reached. The acceptable portion of the material may be consumed and/or arrangements may be made to sample a portion of material, i.e.,10-25% with balance held intact pending resolution of claim. Seller's Responsibility: a. In the event of a claim, Seller should respond to Buyer's notification promptly bytelephone, telex, wire, orcable. b. When a claim settlement has been agreed upon, terms of settlement must be followed promptly. 4. The arbitration procedure usually includes a hearing, at which time the parties involved are required to appear, present their respective cases, and be available for ques- tioning by the arbitrator(s). All physical evidence (con- tracts, correspondence, relevant comments, etc.) maybe required to be submitted in advance to the arbitrators. A party in the arbitration may be accompanied by counsel but must inform the other party in advance and receive permission from the arbitrators. Witnesses mayalso be called to an arbitration hearing. There is also an optional procedure for conducting the arbitration without an oral hearing. 5. An award by the arbitrator(s) will be made promptly, within 20 days after hearings have been completed or final briefs submitted. The award is made in writing. 6. The rules state that the parties to the dispute shall be deemed to have consented that a judgment upon the award be entered in any court having jurisdiction over an action to enforce the award. Members who wish to provide an automatic basis forthe set- tlement ofany disputes arising from a transaction are encour- aged to provide in their contracts that the ISRI Arbitration Procedure shall prevail in the event of any ensuing controversy and that each party will take all necessary steps to initiate such arbitration. Members are urged to obtain and carefully read the "Rules for Arbitration" before proceeding. For more information, contact Steve Hirsch, 202/662-8516 or email stevehirschC~isri.org. F.XT~TR~T f' EXAMPLES UNDER REGIONAL REC~~LA.BLE PRU~ESS~NG AGREEMENT Ex~M~LE A: Denton Curbside: SOD Tons Denton Commercial OCC: 300 Tons Denton Collection Sites: 1 0 Tons Total Tons: 900 Tans The City would receive $5,OOlper ton for the City Curbside Collected Material ($2,500} because the Total Tons Delivered to the MRF for that calendar month are between 0 and 1000; see chart in 1.09(a}. Additionally, the City would receive either 75% or 60% (depending on whether the tons are clean or unprocessed} of the OBM value for that month depending on the type of material (i.e., mixed paper, steel cans; etc.} for each of the Denton Commercial OCC and Denton Collection Site tons; see chart in 1.o9(b}. ExAMP~E B: Denton Curbside: 500 Tons Denton Commercial OCC: 300 Tons Denton Collection Sites: 200 Tons Other cities'Curbside Collected Material: 40o Tons Other Commercial Recyclables collected by Pratt Recycling: 20 Tons Total Tons: ~ .600 Tans The City would receive $I2.501per ton for the City Curbside Collected Material ($6,250} because the "Total Tons" Delivered to the MRF for that month are more than 1,50o and less than 2,000 tons; see chart in 1.09(a}. The City would also receive $Slper ton for the other cities' Curbside Collected Material($2,000}. Additionally, the City would receive either 75% or 60% (depending on whether the ton is clean or unprocessed} of the OBM value for that month depending on the type of material (i.e., mixed paper, steel cans, etc.} for each of the Denton Commercial and Denton Collection site tans; see chart in 1.09(b}. The City would not be paid a rebate on the "other'' cities' commercial recyclables collected by Pratt Rec}~cling, but the Clther Commercial Recyclables collected by Pratt Recycling would be used to determine the amount of Total Tons Delivered to the MRF. 20 / r ~ S L Exhibit 2 STATE ~F TEXAS COUNTY OF DENTIN LEASE AGREEMENT This Lease Agreement the "Lease Agreement"} is made and entered into effective as of the Effective Date, as set forth below, by and between THE CITY DF DENTON, TEAS thereinafter sometimes referred to as "LESSOR" andlor "the City''}, and ~ISY RECYCLING, INC. dlbla PRATT RECYCLING ~"LESSEE''' andlor "Pratt Recycling''}. WHEREAS, LESSOR awns the City's Solid Waste Services Site the "Site''}, located in the vicinity of 1100 Mayhill Road, Denton, Texas and operates a landfill on the Site the "Landfill"}; and .~ WHEREAS, the City desires to lease to Pratt Recycling a six (6) acre tract of property located at the Site, which property is more specifically outlined on Exhibit 1 thereinafter the "Lease Premises"}; and WHEREAS, Pratt Recycling desires to lease the Lease Premises from the City for .purposes of construction and operation of a materials recovery facility the "MRF"}; and NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and for good and valuable consideration, receipt and sufficiency of which are acknowledged, LESSORIthe City and LESSEEIPratt Recycling, intending to be legally bound, agree as follows: ARTICLE 1 PREMISES 1,1 Lease Premises. LESSOR hereby leases and lets unto LESSEE, and LESSEE hereby leases and lets from LESSOR the Lease Premises, which is that certain tract or parcel of land containing six ~6} acres, more or less, located at the Site, outlined in red on Exhibit 1 attached hereto and made a part hereof and being more full}~ described on Exhibit 2 attached hereto and made a part hereof. ATLANTA:494145g.6 1.Z Use of Premises. The Lease Premises are to be occupied and used by LESSEE for the handling, processing, storage of "Recyclable Materials,'' as defined in that certain Regional Recyclables Processing Agreement, between the City and Pratt Recycling, dated October 2, 2007 the "RRP Agreement"}. In the event LESSEE for any reason desires hereafter to substantially modify andlor substantially change its use of any of the Lease Premises, the nature and terms of such modification and change must be approved in writing by LESSOR and this Lease Agreement must be amended in writing to authorize the same. 1.3 Lessee Construction on Lease Premises. LESSEE shall have the right to construct improvements on the Lease Premises and this right shall continue in effect throughout the term of this Lease Agreement. LESSEE will, as a consideration for LESSOR'S obligations set forth herein and this Lease Agreement, construct, at LESSEE'S cost, a building of approximately 44;000 square feet to be used as a Materials Recovery Facility for processing "Recyclable Material" (as defined in the RRP Agreement}. Throughout the term of this Lease Agreement, LESSEE shall have the right to alter, modify, remodel and demolish any improvements LESSEE has constructed and owns on the Lease Premises; provided, however, if LESSEE exercises its option to demolish the building, then LESSOR is fully excused from the obligation to purchase the building pursuant to Section 5.b of this Lease Agreement. LESSEE agrees to provide to LESSOR a complete set of plans and specifications detailing each improvement which LESSEE proposes to construct on the Lease Premises prior to commencing any construction. The plans and specifications will be reviewed by LESSER only for compliance with the municipal code of Denton, Texas. LESSOR must approve, within fifteen ~ 15} days of the submittal in writing; the proposed improvements which LESSEE plans to construct on the Lease Premises which approval will not be unreasonably withheld or delayed. It is understood that this approval will be only the review of the Solid Waste Department, and will not be any other City required approval that may apply. Said approval shall be deemed granted by the Solid V4~aste Department only unless specific objections are provided to LESSEE u-ithin said fifteen X15} day period. No approval of LESSOR shall be required with respect to any modifications or alterations or remodeling of the interior of any of the improvements. All improvements constructed or placed on the Lease Premises by LESSEE _2_ ATLANTA:4941459.b shall remain the property of LESSEE during the term of this Lease Agreement and any renewal or extension hereof. All real property fixtures shall remain the property of LESSEE, and upon the termination of this Lease, any real property fixtures shall be removed by LESSEE with no damage to the Lease Premises. Upon termination of this Lease, the Lease Premises shall be free and clear of recyclable or recycled materials and shall bebroom-clean. ~.4 Easements. - LESSOR shall provide to LESSEE, when reasonably required by LESSEE in the conduct of its business on the Lease Premises, but in no event later than completion of construction, at no additional consideration, nonexclusive rights of way or easements it has the right to grant over, across and through the Site, including ingress and egress onto the Lease Premises available from one or more points on the west side of the Lease Premises, to the City's perimeter private road leading to the intersection of Spencer Road and Mayhill Road in Denton, Denton County, Texas, which are necessary for the operation of LESSEE's facilities on the Lease Premises as follows: ~a) For connection of water and sanitary sewer facilities to the boundary of the Lease Premises; ~b~ For connection of telephone, electric and gas lines, as approved by the appropriate utility companies, to those installed at or upon the Lease Premises; and (c) For connection of streets and/or roads for vehicular traffic to roads immediately adjacent to or neaz the Lease Premises. In addition, LESSER shall furnish to LESSEE, at no additional cost, additional reasonable, necessary, nonexclusive rights of way or easements over, across and through LESS~R's unleased property at the Site which LESSOR has the right to grant and which are reasonably necessary for the operation of the MRF. All rights of way or easements granted or to be granted shall be located in such a way as to not unreasonably interfere with the orderly utilization of the Landfill. 1.5 Signs. LESSEE shall be entitled to erect, install, and maintain on the Lease Premises identification and advertising signs appropriate to its business, provided, however, that all such -3- ATLANTA:4941459.b signs at all times shall be subject to the prior written approval of LESSER as to location, size, shape, color and content. Said approval shall not be unreasonably withheld. l.b Lien Claims. LESSEE hereby covenants to unconditionally indemnify LESSOR from and against and hold LESSOR harmless from any and all lien claims of any nature whatsoever arising out of or in any manner connected with the construction, installation, erection; maintenance, repair, occupancy, use andlor operation of any improvements, facilities andlor equipment of LESSEE or any third person on or about the Lease Premises by or at the direction of or with the permission of LESSEE, and LESSEE further agrees that it shall, in the event any such liens are filed, forthwith effect their removal andlor satisfaction, provided, however, LESSEE shall have the right, at its sole cost and expense and after having given LESSflR prior written notice of its intent to do so, to contest by appropriate legal proceedings diligently conducted in good faith, the amount, validity or application, in whole or in part, of any such lien or liens, provided ~i} such proceedings shall suspend the collection of such liens}; iii} neither the Lease Premises nor any rent therefor; nor any portion of same; would be in danger of attachment, forfeiture, loss or similar consequence; and viii} that LESSEE shall first furnish security to bond said lien off of the Lease Premises. 1.'1 Inspection andlor Repair of Lease Premises. LESSEE shall at all times maintain the Lease Premises including all improvements thereon in good condition; and LESSEE shall be responsible for all maintenance, repair and replacement of the Lease Premises and all improvements thereon except for repairs or replacements caused by the acts or negligence of LESSER, its agents or employees. 1.8 Warranty. LESSER represents and warrants that it owns the Lease Premises and that LESSER is fully authorized to enter into this Lease Agreement with LESSEE. In addition, LESSER represents and warrants that it has not granted any mortgages or pledges of the property leased hereunder. It is understood and agreed that any mortgage, pledge, or other encumbrance of the property leased hereunder shall be subordinate to this Lease Agreement and that any such mortgage, pledge, or other encumbrance shall contain specific provisions providing that all of -4- ATLANTA:49414~9.6 LESSEE's improvements or appurtenances on the property leased hereunder, as well as any products or other contents in or on said improvements or appurtenances, are excluded from such mortgage, pledge or encumbrance, and that LESSEE hereunder retains the right to remove any and all such improvements or appurtenances, as well as any products or other contents in or on said improvements or appurtenances; in accordance with the teens of this Lease Agreement, and that in the event of a foreclosure, LESSEE shall have the right to continue to occupy the Lease Premises pursuant to the terms of this Lease Agreement so long as LESSEE is not in default hereunder. ARTICLE 2 LEASE TERM 2.1 Primary Term. The Primary Term of this Lease Agreement shall be for a term of twenty (20) years from and after the Effective Date of this Lease Agreement, unless sooner terminated as provided herein. As provided in Section 5.1, the term of this Lease Agreement shall end concurrently with the RRP Agreement. The "Effective Date'' of this Lease Agreement shall be latter of the date on which LESSEE executes this Lease Agreement and the date on which LESSER executes this Lease Agreement. 2.Z Renewal Terms. Provided LESSEE is not in default and this Lease Agreement is otherwise ~n full force and effect, this Lease Agreement may be extended for two ~2} additional terms of ten ~l o} years each. The decision to extend the Lease Agreement must be a mutual decision made by both LESSER and LESSEE. Negotiations to extend this Lease Agreement are to begin approximately one ~ 1 }year before the end of the Primary Term or the First Renewal Term ~as the case may be} of this Lease Agreement. 2.3 Assignment of Lease Agreement LESSEE shall not assign, sublet, mortgage or pledge this Lease Agreement or any interest herein or in the Leased Premises or any part thereof, nor shall any assignment, sublease or transfer of whatever kind of any interest of LESSEE herein by operation of law or by reason of LESSEE'S bankruptcy become effective, without the prior written consent of LESSOR, which -~- ATI.ANTA:49414~9.b consent shall not be unreasonably withheld; provided that the City's refusal to give the City's consent to a potential assignee who is not as creditworthy as Pratt Recycling shall be deemed to be reasonable. Notwithstanding the foregoing, LESSEE shall have the right to assign this Lease Agreement or sublet the Lease Premises to an entity that is controlled by, or under common control with LESSEE, or to a third-party entity that will construct andlor own the MRF and lease it to Pratt Recycling so long as Pratt Recycling remains fully and primarily liable for all of its obligations under this Lease Agreement and the RRP Agreement. ARTICLE 3 RENTALS 3.1 Rentals. The rental for the Lease Premises shall be TWELVE CENTS ~$.1 ~} per square foot per year for the first five years of the Lease Term. The first monthly rental payment will be due on or before the first day of the fvrst month following the date on which Pratt Recycling receives alI of the authorization and permits from the City of Denton and County of Denton to construct the building the "Permit Date"} with equal payments to be made on the same day of each month thereafter throughout the term of the Lease; subject to the terms of rental adjustment indexing} reserved in thi s paragraph. From the Permit Date until the earlier of the "Commencement Date" has defined in the RRP Agreement) or September 1, 200$, the rent for the Lease Premises will be reduced by So%. The rental rate set forth in the First sentence of this Section 3.1 is for purposes of the Lease and shall be defined as the "Initial Base Rental Payment." Such Initial Base Rental Payment will be the rental due under the Lease for years one ~ 1 }through five ~S} of the initial twenty X20} year term of the Lease the "Primary Term''}. Prior to the commencement of the first ~ 1st} day of the sixth 6th} year of the Primary Term, and prior to the commencement of each additional five ~5} year period thereafter throughout the entire term of the Lease, including any renewal terms ~a "Renewal Tenn"}, the rental to be paid by LESSEE to LESSOR under the Lease shall be subject to adjustment based upon adjustments in the consumer price index, as hereinafter defined. The initial base rental payment shall be adjusted upward, downward, or unchanged prior to the commencement of the sixth 6th} year of the Lease to conform to the "Consumer Price Index" now known as U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index, U.S. Cities Average, all items X1967 equal l00}. The adjustment at the _6_ ATLANTA:4941459.6 beginning of year six ~G} of the Lease will be accomplished by multiplying the initial base rental payment by a fraction, the numerator of which shall be such index as of the most recent date published prior to the date of adjustment and the denominator of which shall be the most recently published index as of the Commencement Date, The adjustment for each subsequent five ~5} year period will be calculated in a similar manner except that rather than using the initial base rental payment as the base rentals from which adjustments will be made, the rental figure for the then current year will be substituted for such initial base rental payment. In no five ~5} year period may the rental be increased or decreased more than twenty-five percent X25°~0} of the rental applicable during the five ~5} year period immediately preceding the five ~5} year period for which adjustment is to be made. If the index above referred to shall be discontinued, the parties hereto shall attempt to agree upon a substitute index or formula. In the event of dispute between the parties as to the amount of any adjustment, the rates shall be established through the dispute resolution procedures as described in Article ~I of this Agreement. 3.2 Taxes. LESSEE agrees to pay all sales andlor use taxes andlor ad valorem assessments andlor taxes which may be legally made upon andlor levied andlor assessed against LESSEE's property on the Lease Premises, before the same shall become delinquent; provided, however, LESSEE shall have the right, at its sole cost and expense and after having given LESSOR prior written notice of its intention to do so, to contest by appropriate legal proceedings diligently conducted in good faith, the validity, amount or application, in whole or in part, of such taxes, levies andlor assessments provided ~i} such proceedings will suspend the collection of the tax, levy, or assessment; and iii}the Lease Premises, nor any rent therefrom, nor any portion of it is in danger of seizure, forfeiture, sale, loss or sinular consequences. 3,3 Late Charges on Rentals. If any installment of rental due from LESSEE is not received by LESSOR within thirty X30) days of the date upon which it is due, without any notice or demand for payment to LESSEE being necessary; LESSEE will pay to LESSOR an additional sum of five percent ~5%} of the overdue rental as a late charge. Acceptance of any late charge shall not constitute a waiver of _~- ATLANTA:4941459.6 LESSEE's default with respect to the overdue amount, nor prevent LESSER from exercising any other rights and remedies available to LESSOR. 3.4 No Additional Fees There shall be no additional fees ar assessments made by LESSER for LESSEE's use or occupancy of the Lease Premises; provided that LESSER shall remain responsible for any impact, connection or building fees associated with the construction of the building. ARTICLE 4 ~PER.ATIUNS 4.1 Pollution Control. LESSEE agrees that it sha11 use its commercially reasonable best efforts to comply with all applicable federal, state and local laws, regulations and common law as they may exist currently or as they may be amended in the future, pertaining to protection of the environment or human health and safety at the MRF andlor in the vicinity of any of its operations or activities that may be permitted hereunder. 4.2 Compliance with Environmental Laws and Indemnification. During the term of this Lease Agreement, LESSEE shall comply with all applicable federal, state and. local laws, regulations and common law, as they may exist currently or as they may be amended in the future, pertaining to protection of the environment or human health and safety at the MRF. LESSER warrants and represents that at the commencement of this Lease Agreement, that to its knowledge there is no Hazardous Substance (as defined herein below) including any petroleum, petroleum product, or other types of hydrocarbons in or on the Lease Premises in contravention of any federal, state or local laws, regulations or .Gammon law pertaining to protection of the environment or human health and safety. Notwithstanding any provision in this Lease Agreement to the contrary, it is expressly understood and agreed that the LESSEE does not assume or agree to be responsible for, and LESSER hereby agrees, only to the extent permitted by applicable law, to indemnify, defend and hold LESSEE, its officers, employees, contractors, agents, customers, licensees, invitees andlor -$- ATLANTA:4941459.6 visitors and any other person for ar on whose behalf LESSEE is liable, harmless from and against any and all claims, obligations, liabilities, casts, expenses including attorneys fees}, losses, suits, fines, penalties or demands, made or sought by or on behalf of any person, fums, corporation or government authority whomsoever, based upon or arising out of any obligation, liability, loss, damage or expense, of whatever nature or kind; contingent or otherwise, known or unknown, incurred under or imposed by any provision of federal, state or local law or regulation, or common law, pertaining to protection of the environment or human health and safety in or an the Lease Premises prior to the Effective Date. Notwithstanding any provision in this Lease Agreement to the contrary, it is expressly understood and agreed that, except as provided in the RRP Agreement, the LESSER does not assume or agree to be responsible for, and LESSEE hereby agrees to indemnify, defend and hold LESSOR, its a~icers, employees, contractors, agents, customers, licensees, invitees andlor visitors and any other person far ar an whose behalf LESSOR is liable, harmless from and against any and all claims, obligations, liabilities, costs, expenses including attorneys' fees}, losses, suits, fines, penalties, or demands, made or sought by or on behalf of any person, firm, corporation or government authority whomsoever, based upon or arising out of the handling, storage or disposal of Hazardous Substances by LESSEE, LESSEE'S agent or anyone on or about the Leased Premises by or at the direction of LESSEE or with the permission of LESSEE during the term of this Lease Agreement. For purposes of this Lease Agreement, the term "Hazardous Substance}' or "Hazardous Substances'' means that term as defined in Section 9601 ~ 14} of the Comprehensive Environmental Response; Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ~"CERCLA"}, but it also includes the term "Regulated Substance" as defined in Section 6991 ~2}, and the term "Hazardous Waste" as defined in Section 69035}, of the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901, et seq. ~"RCRA"}, including all regulations issued pursuant to any of the above statutes, as well as any other contaminant, oil, petroleum, petroleum product or byproduct, radioactive material or byproduct and any unsafe, noxious, toxic or hazardous substance or similar material regulated as a hazardous substance under any applicable state, federal ar local law, and any other applicable _g. ATLANTA:494 ~ 459.6 environmental, land use or similar act, statute or regulation existing as of the date of this Lease Agreement or thereafter. The indemnifications provided by this article shall specifically and reciprocally cover, without limitation, costs intoned in connection with any investigation of site conditions or any cleanup; remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision or other third party: The foregoing environmental indemnity provisions shall survive for a period of five ~5} years after the expiration or termination of this Lease Agreement and any renewals hereof. 4.3 C'omplianee with Laws and Regulations. LESSEE's exercise of such rights andlor privileges as may be extended it hereunder shall at all times be in full compliance v~~ith all applicable laws, rules, and regulations, including safety regulations, of the City of Denton, Texas, the State of Texas, the United States, and other governmental authorities now or hereafter having jurisdiction thereof andlor any of their duly empowered agencies andlor instrumentalities. A copy of all building permits, licenses, and similar authorizing documents will be provided promptly to the LESSOR. 4.4 Lessee insurance. For the term of this Lease Agreement and any renewal thereof, LESSEE will maintain, at its own expense, the following insurance coverage: ~a} Worker's Compensation Insurance in accordance with statutory requirements, and Employer's Liability Insurance with limits of not less than $1,000,000 for each accident; fib} Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence, and not less than $2,040,000 in the aggregate; and with property damage limits of not less than $500,000 for each occurrence, and not less than $1;000,000 in the aggregate; ~c} Automobile Liability Insurance with bodily injury limits of not less than $1,000,000 far each person and not less than $2;400,000 for each accident; and with property damage limits of not less than $500,000 for each accident; and -10- ATLANTA:4441459.b {d} Casualty property insurance on the MRF in an appropriate amount reasonably determined by LESSEE, which amount shall take into account the construction costs of the MRF and other relevant factors. LESSEE shall provide LESSOR with a certificate evidencing the insurance required hereunder together with evidence of premium payment. All such policies of insurance shall require that LESSOR and LESSEE be given at least thirty {30} days prior notice of any modification, termination andlor cancellation of coverages. The insurance policies described in {b} and ~c} above shall name LESSOR as an additional insured party. All insurance policies belonging to LESSEE shall be issued through companies licensed to do business in the State of Texas by the State Insurance Commission or any successor agency, which companies have a rating with A.M. Best Rate Carriers of at least an "A-'' or higher. The insurance requirements set forth in this Section 4.4 are defined as the "Initial Insurance Requirements.'' Such Initial Insurance Requirements will be the requirements under the Lease for the "Primary Terre" has defined in Section 3.1 of this Agreement}. Prior to the commencement of the first { 1st} day of the sixth {6th} year of the Primary Term, and prior to the commencement of each additional five {5} year period thereafter throughout the entire term of the Lease, including any "Renewal Term", the insurance requirements for that period shall be subject to adjustment based upon adjustments in the consumer price index, as hereinafter def ned. The Initial Insurance Requirements shall be adjusted prior to the commencement of the sixth {6th) year of the Lease to conform to the "Consumer Price Index'' now known as U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index, U.S. Cities Average; all items {1967 equal 100}. The adjustments at the beginning of year six {6} of the Lease will be accomplished by multiplying the Initial Insurance Requirements by a fraction, the numerator of which shall be such index as of the most recent date published prior to the date of adjustment and the denominator of which shall be the most recently published index as of the Commencement Date. The adjustments for each subsequent five {5} year period will be calculated in a similar manner except that rather than using the Initial Insurance Requirements as the base insurance requirements from which adjustments v~~ill be made, the insurance requirements for the then current year will be substituted for such Initial Insurance Requirements. In no five ~5} year period may the insurance requirements be increased or decreased more than twenty-five percent {25%} of the insurance requirements applicable during the five {5} year period immediately _I1_ ATLANTA:4941459.b preceding the five ~5} year period for which adjustments are to be made. If the index above referred to shall be discontinued, the parties hereto shall attempt to agree upon a substitute index or formula. In the event of dispute between the parties as to the amount of any adjustment, the rates shall be established through the dispute resolution procedures as described in Article VI of this Agreement. ARTICLE S TEItMINATIUN 5.1 Termination. This Lease Agreement shall terminate pursuant to Article V of the RRP Agreement. Upan termination, LESSEE shall be entitled to remove all personal property from the building and any equipment that LESSEE has installed in the building, shall remove all recyclables and recycling materials from the Lease Premises and shall thereafter quit and surrender the Lease Premises to LESSOR in broom-clean condition and LESSOR shall accept the Lease Premises cc~ 1S''. 5.Z Events of ~]efault. The fallowing shall be "Events of Default" under this Lease Agreement and the terms "Event of Default" ar "Default" shall mean whenever they are used in this Lease Agreement, any one or more of the following events: ~a} The insolvency, assignment for the benefit of creditors, adjudication as a bankruptcy of LESSEE or the appointment of a receiver for substantially all of the LESSEE's property andlor LESSEE's interest in this Lease Agreement; fib} The issuance of execution against LESSEE's interest in this Lease Agreement or any legal process which by operation of law would cause LESSEE's interest in this Lease Agreement to pass to any person other than LESSEE or its successor assignee or sublessee pursuant to Article 2.3; ~c} The failure or refusal of LESSEE to pay or cause to be paid any lease rental, charge andlor assessment hereunder or any installment thereof when due and the continuance of such failure for a period of sixty ~6~} days after written notice thereof; -12- ATLANTA:4941459.6 ~d} The failure or refusal of LESSEE to perform any agreement, covenant, condition, obligation andlor undertaking herein contained or required by operation of law andlor to observe or comply with any of the terms provisions or conditions of this Lease Agreement, and the continuance of such for a period of sixty ~bo}days after written notice thereof; fie} The failure of LESSOR in the observance ar performance of any material term, obligation or covenant required to be performed by LESSOR under this Lease Agreement or by operation of law, shall constitute a default by LESSOR of the Lease Agreement; ~#~ The LESSOR or any mortgagee under any mortgage covering the Lease Premises shall have given prior written notice to LESSEE that such mortgagee is the mortgagee under such a mortgage and such notice includes the address at which notice to such mortgage and such notice includes the address at which notice to such mortgagee may be sent, then LESSEE agrees to give such mortgagee notice simultaneously with any notice given to LESSOR to correct any default of LESSOR as hereinabove provided, Further, LESSEE agrees that the mortgagee shall have the right, within sixty X60}days after receipt of said notice, to corrector remedy such default before LESSEE may take any action under this Lease Agreement by reason of such default. 5.3 Cancellation. If any Default shall occur and continue unremedied or uncorrected for a period of sixty X60} days after LESSOR shall have given LESSEE notice in writing specifying such Default, then at the written option of LESSOR this Lease Agreement and all LESSEE's interests and rights hereunder shall immediately cease and terminate; provided, however, in the case of a Default occurring under Article 5.2 which does not endanger or impair or threaten to endanger or impair LESSOR and which is remediable but will reasonably require in excess of sixty ~6~} days to remedy, LESSEE shall, upon receipt of notice of Default from LESSOR, have notified LESSOR of the probability of such delay and undertake to remedy such Default with due diligence, then termination shall be stayed only for so long as LESSEE in good faith continues its best efforts to remedy such Default without unnecessary delay and with due diligence. ~f any Default shall occur and continue unremedied or uncorrected for a period of sixty X60} days after LESSEE shall have given LESSOR notice in writing specifying such Default, then at the written option of LESSEE this Lease Agreement and all LESSOR's interests and rights hereunder shall immediately cease and terminate; provided, however, in the case of a Default occurring under Article 5.2 which does not endanger or impair or threaten to endanger or -13- ATLANTA:4941459.6 impair LESSEE and which is remediable but will reasonably require in excess of sixty ~~0) days to remedy, LESSOR shall, upon receipt of notice of Default from LESSEE, have notified LESSEE of the probability of such delay and undertake to remedy such Default with due diligence, then termination shall be stayed only for so long as LESSER in good faith continues its best efforts to remedy such Default without unnecessary delay and with due diligence. 5.4 Holding Uver. If LESSEE shall, with the consent of LESSOR, hold over after the expiration or sooner termination of the term of this Lease Agreement, the resulting tenancy shall, unless otherwise mutually agreed, be for an indef Hite period of time on a month-to-month basis. During such month-to-month tenancy, LESSEE shall pay to LESSOR the same rentals, plus an additional payment of holdover rent of twenty-five X25%} percent, per month, payable monthly along with its other rental payment, as set forth herein, unless a different ratets} shall be agreed upon, and shall be bound by all of the provisions of this Lease Agreement insofar as they may be pertinent. 5.5 Waiver of Breach of Default -- Cumulative Remedies. Waiver by any party of any breach or Default of this Lease Agreement shall nat be deemed a waiver of similar or other breaches or Defaults, nor shall the failure of any party to take action by reason of any such breach or Default deprive such party of the right to take action at any time while such breach or Default continues. The rights and remedies created by this Lease Agreement shall be cumulative and nonexclusive of those to which the parties may be entitled pursuant to law. Right of exercise of all such rights and remedies is hereby reserved. The use and availability of one remedy shall not be taken to exclude or waive the right to use of another. In order to entitle any party to exercise any remedy reserved to it in this Lease Agreement, it shall not be necessary to give any notice, other than such notice as is herein expressly required. 5.6 Continuation of Recycling. Pursuant to Section b,08 of the RRP Agreement, Pratt Recycling may elect to require the City to buy the building containing the MRF knot including the equipment}, and if Pratt Recycling so elects to require the City to buy the building, the City shall pay to Pratt Recycling as consideration for the building a sum equal to the "Building Purchase Pee." The Building -14- ATLANTA:494 ! 49.6 Purchase Fee shall be equal to (a} the lesser of (y} Pratt Recycling's actual cost of constructing the building or (z} $2,444,444 multiplied by (b} a fraction, the numerator of which will be twenty (24} minus the number of years (or fraction thereof} the MRF was operated by Pratt Recycling, and the denominator of which will be twenty (24}; provided, however, that if Pratt Recycling elects to demolish the building containing the MRF, then the obligation of the LESSER to pay LESSEE for such building as provided in this Article 5.b, shall terminate and be of no further force and effect. ARTICLE G MISCELLANEOUS 6.1 Quiet En;ayment. LESSER covenants that during the entire term of this Lease Agreement and for so long as LESSEE shall make timely payment of rentals due hereunder and shall perform all covenants on its part to be performed, LESSEE shall and may peaceably and quietly have, hold and enjoy the Lease Premises. In the event of bankruptcy, insolvency; assignment for benef t of creditors, or foreclosure of any mortgage or other encumbrances; by entry or by sale, LESSEE, if it is not then in default, shall peaceably hold and enjoy the Lease Premises for the remainder of the unexpired term of the Lease Agreement upon the same terms, covenants, and conditions as in this Lease Agreement. 6.2 Notices. All notices and other communications required or permitted to be given by any provision of this Agreement shall be in writing and mailed (certified or registered mail, postage prepaid, return receipt requested} ar sent by hand or overnight courier, and such notices shall also be sent by facsimile transmission (with acknowledgment received), charges prepaid and addressed to the intended recipient as follows, or to such other address or number as may be specified from time to time by like notice to the Parties. A courtesy copy of such notice or other communication shall also be sent electronically via email to the email addresses provided in the contact information below; provided, however, that such email copies will not constitute Notice as defined in this Section ~.2: -15- AT~.ANTA.4941459.6 (a) If to the City: City of Denton 2 ~ 5 East McKinney Street Denton; TX 7b201 Attention: City Manager Facsimile: 940-349-8596 With a copy to: City of Denton 1527 South Nlayhill Road Denton, TX 76208 Attention: Director of Solid Waste Services Facsimile: 940-349-8057 Email: ~ance.Kernler a~cityofdenton.com If to Pratt Recycling: Pratt Recycling [To be provided] Denton, TX 7b208 Attention: anager Facsimile: [To be provided] Email: [Plant Manager] With a copy to: Pratt Recycling 1169 Qakleigh Street East Point, GA 30234 Attention: VP of Recycling Facsimile: Email: Lhenao@prattindustrie5.com and Pratt Industries U.S.A.}, Inc. 1800-C Sarasota Parl~way Conyers, GA 30013 Attention: General Counsel Facsimile: 770-388-52b0 Email: jsevy@prattindustries.com -16- AT~.ANTA:494 ! 459.6 Any Party may from time to time specify a different address for notices by like notice to the other Party. All notices and other communications given in accordance with the provisions of this Lease Agreement shall be effective upon receipt of the same. 6,3 Substitution of Performance. If LESSEE shall fail to do anything required to be done by it under the terms of this Lease Agreement, except to pay rent and other charges, LESSOR may, after sixty (60} days written notice to LESSEE, at LESSOR'S sole option, do such act or thing on behalf of LESSEE, and upon notification of the reasonable cost thereof to LESSOR, LESSEE shall promptly pay to LESSOR the amount of that cost. In case of emergency, LESSOR may perform any act or do anything reasonably necessary on behalf of LESSEE and upon notification of the cost thereof to LESSEE, LESSEE shall pay said cost to LESSOR within thirty X30} days from the date the LESSEE receives written notice of LESSOR'S claim. If LESSOR shall fail to do anything required to be done by it under the terms of this Lease Agreement, LESSEE may, after sixty ~bD} days written notice to LESSOR, at LESSEE'S sole option, do such act or thing on behalf of LESSOR, and upon notification of the reasonable cost thereof to LESSOR, LESSOR shall promptly pay to LESSEE the amount of that cost. In case of emergency, LESSEE may perform any act or do anything reasonably necessary on behalf of LESSOR and upon notif cation of the cost thereof to LESSOR, LESSOR shall pay said cost to LESSEE within thirty X30} days from the date LESSOR receives written notice of LESSEE'S claim. LESSEE may elect to deduct such amounts from any amounts otherwise due LESSOR, which election shall be communicated to the LESSOR with the notif cation of the cost of the remedy. 6.4 Eminent Domain. If all or a portion of the Lease Premises or all or any portion of LESSOR's other property comprising the Site shall be taken or sold in any proceeding by public authorities, by means of condemnation, expropriation, appropriation or otherwise be acquired for public or quasi-public purposes, there shall be equitable refund of the rental paid by LESSEE under Article 3.1 above from any award to LESSOR proportionate to the amount taken. Nothing herein shall affect or -17- ATLANTA:494 i 4S9.b diminish LESSEE's right to seek compensation from the condemning entity neither directly or through the LESSOR} for any portion of the Lease Premises taken and LESSEE shall be entitled to all such compensation for its loss or damage. In the event the taking of the Lease Premises or all or a part of LESSOR'S other property comprising the Site is total, this Lease Agreement shall terminate, and LESSEE shall be released from all obligations hereunder, except for any amounts incurred by LESSEE prior to the date of termination which amounts shall be paid to LESSOR within thirty X30} days of the date of termination. In the event the taking of the Lease Premises or LESSOR's other property comprising the Landfill is less than total, then LESSEE shall have the option to terminate this Lease Agreement if continuation of its operations on the Lease Premises is substantially impaired and economically impractical. 6.5 Studies. LESSOR shall provide to LESSEE within fifteen X15} days after LESSOR'S date of receipt of same, all environmental and all other studies concerning the Lease Premises as they are performed during the course of this Lease Agreement. LESSEE shall provide to LESSOR within fifteen ~ 15} days after LESSEE'S date of receipt of same, all environmental and other studies concerning the Lease Premises during the course of this Lease Agreement. 6.6 Recordation. Neither LESSOR nor LESSEE shall record this Lease Agreement without the prior written consent of the other party. LESSOR and LESSEE may execute and acknowledge a "short form" memorandum of this Lease Agreement for recording purposes, substantially in the same form as set forth in EXHIBIT 3 attached hereto. 6.7 Entire Agreement. This Lease Agreement embodies the entire agreement between the parties with respect to the leasing and use of the Lease Premises. There are no representations, terms, conditions, covenants or agreements between the parties which are not mentioned or contained herein. This Lease Agreement shall completely and fully supersede all other prior agreements, other than the _Ig_ ATLANTA:4941459.6 RRP Agreement, bath written and oral, between the parties pertaining to the Lease Premises. No party to any such prior agreement hereafter will have any rights thereunder but shall look solely to this Lease Agreement for definition and determination of its rights, liabilities, or responsibilities relating to the aforesaid matters set forth herein. b.S Captions. The article and subsection headings and captions contained herein are included far convenience only and shall not be considered a part hereof or affect in any manner the construction or interpretation of this Lease Agreement. 6.9 Severability. The parties agree that if it should ever be held by a court of competent jurisdiction that any one or more articles, subsections, clauses or provisions of this Lease Agreement are invalid or ineffective for any reason, any such article, subsection; clause or provision shall be deemed separate from the remainder of this Lease Agreement and shall not affect the validity and enforceability of such remainder. 6,1o Successors and Assigns. The covenants; terms, conditions and obligations set forth and contained in this Lease Agreement sha11 be binding upon and inure to the benefit of LESSOR and LESSEE and their respective successors and assigns. b.ll Disputes and Governing Law. Any disputes arising under this Lease Agreement shall be settled pursuant to Section b.41 of the RRP Agreement. This Lease Agreement shall be construed solely in accordance with the laws of the State of Texas. Exclusive venue for any claim or cause of action under this Agreement shall be, as the case maybe, either in the District Courts of Denton County, Texas, ar the federal district courts of the Northern District of Texas, Dallas Division. TN •wITNESS wHEREDF, this Lease Agreement has been executed by the duly legally authorized representative of LESSER, in multiple copies, each of which, for all purposes, shall be deemed an original and all of which shall evidence but one agreement between. _lg_ ATLANTA:4941459.6 E~CUTED phis day of , ~Oa7. THE CITY ~F DENTQN, TEXAS A Texas Municipal Corporation By: ATTEST JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY TTORNEY By: GEORGE C. CAMPBELL, City Manager _~p_ ATLANTA:4941459.6 IN WITNESS WHEREOF, this Lease Agreement has been executed by LESSEE in the presence of the undersigned witnesses, in multiple copies, each of which, far all purposes, shall be deemed an original and all of which shall evidence but one agreement. WITNESSES: ~O,~t,~r ~ 4 r~ t~ ~tCk~ ,,1~ ~ ~, t ~ ~ Ipp~ t ~ 1 ~r1 +~ ~ ~ ~ ~Ii Y . /~ :~ ~ ~'.~ o rA ~~y~n ~~ • Y ~~- ~.: ~ ~ ~. *~ .. ~;~pUBLtC ,' i •f ~~ ~ '~i~r ~'. ~rem~ei 1 ~.~ ~ 1~`~ YISY RECYCLING, INC. . A Delaware Corporation LUIS HENAD, Executive Yice President, Recycling Division Date: ~ ~~ _~1 _ ATLANTA:4941459.b ~~ ~ 1 ~ , Exhibit 1 Exhibit 2 ~., ~' ~~ .~ ~~ ., ~~ Coleman- ~ .~ss~C, L~ ~~r~r~ .~ ~~ 1'.C~.1.~4~~~t (i~{~i Ue~~~or~. ~1'e~~is 7fi~0`2 1'l~c~iie (~)~[?).~G~~-b~ I:i ~'~3..~ (9=1U~;~{~5-{t$Ofl 6.0 Acre Tract FIELD MOTES to all of that certain tract of land situated in the G. walker Survey Abstract Number 133x, Cite of Denton, Denton County Texas and being a part of the called 29.612 acre tract described in the deed from Harold C. Coe to City of Denton; Texas recorded under Clerks File Number 9S-R~07~063 of the Real Property Records of Denton County, Texas and a part of the called 6.173 acre tract described in the deed from Clifford Harper and ~linson Harper to City of Denton recorded under Clerk's File Number 99- R~08$982 of the said Real Property Records; the subject tract being more particularly described as follo~~rs ~Beax~ng5 basis is Texas Coordinate System of 1983, North Central done-4202}: BIGi~NI~~G in the South line of the tract being described herein at a 112 inch iron rod found at a cross tie fence corner post at the Northerly Northwest earner of Lot A, Solid VL~aste I as shown by the plat thereof recorded in Cabinet V~, Page 943 of the Plat Records of Denton County, Texas and a reentrant corner of the said 29.61 ~ acre tract and also being the hjortheast corner of a called 3.6469 acre exact described in the deed Pram Ronald Bro«m et al to City of Denton, Texas recorded under Clerk's File h1umber 2004 144837 of the said Real Pxaperry Records; THENCE North $8 Degrees 28 Minutes 4S Seconds west with the North line of the said 3.6469 acxe tract and the South line of the 29.612 acre tract passing a salient corner thereof and the Southeast corner of the said 6.173 acre tract and continuing along the same course, in all, a total distance of 364.45 feet to a 112 inch iron rod with a yellow plastic cap stamped "Coleman RPLS 4001" set therein after referred to as 112"IRS} in a chain link fence from which a cross tie fence earner post at the Southwest corner thereof an the East side of Mayhill Road bears North $$ Degrees 2$ Minutes 48 Seconds rest a distance of 348.1 feet; THENCE North 04 Degrees ~1 1~Iinutes 34 Seconds East along the said chain link fence across the 6.173 acre tract a distance of 101.94 feet to a 1 ~Z"fRS at a chain link fence corner past for a reentrant corner of the herein described tract; THENCE North 86 Degrees 04 Minutes 39 Seconds west along the chain link fence across the 6,173 acre tract passing at a distance of 172.67 feet a chain link fence corner past and continuing slang the same . course, in al;, a total distance of 180.36 feel to a 112t'IRS far the South~~rest corner of the herein described tract and being 2Q feet Southeast of the East edge of an asphalt xoad; THENCE North ~ 1 Degrees 15 Minutes 15 Seconds East across the 6.173 acre tract, 2f} feet Southeast of the said asphalt road, a distance of 264,19 feet to a 1I2"IRS; THENCE North Ob Degrees 36 Minutes 24 Seconds East continuing across the 6,173 acre tract passing the North line thereof and the South line of the said 29.612 acre tract and continuing Zd feet Southeast of the said asphalt road, in all, a total distance of 101.76 feet tv a 112"IRS; THENCE i~~orth S 1 Degrees 48 Minutes 37 Seconds East continuing across the 29.612 acre exact, 20 feet Southeast of another asphalt road, a distance of 64.1 b_ feet to a 112"IRS for the Northwest corner of the herein described tract; THENCE South 83 Degrees 49 Minutes 47 Seconds East continuing across the 29.612 acre tract, 10 feet South of a dirt haul road, a distance of 483.85 feet to a 112"IRS for the Northeast corner of the herein described tract; THENCE South 01 Degrees 28 Minutes 23 Seconds hest continuing across the 29.612 acre tract a distance of 461.23 feet to a l12"IRS in the North line of the said Lot A; THENCE North $$ Degrees 28 Minutes O1 Seconds ~~est «rith the North line of Lot A, a distance of 9D.03 feet to the PLACE GF BEGI~~~~G.and enclosing 6.0 acres of land, more o; less. ,~~ 0 F ...• ~ .. ~~•~0~5 ~~~ 9 ~ rt ~rtir• • ~ r~• ~~r. [fi ~~ ~ '~ . .. •rrrr.r~•.• P; `7~ r*rrrr• ~~ ~ ~ ~R~ EXHIBIT " 3" MEMORANDUM ~F LEASE THIS MEMQRANDUM ~F LEASE ~"Memorandum''} is executed as of the day of , 2007, by and between THE CITY OF DENTQN, TEXAS, and VISY RECYCLING, INC.: WITNESSETH: 1. LESSQR is the owner of a tract of land the "Property'''} located in Denton, Texas, and shown outlined in on Exhibit "1"attached hereto. 2. LESSER and LESSEE have entered into a certain Lease Agreement the "Lease''} this day of , 2007, wherein LESSQR~has leased to LESSEE the Property for the term of twenty ~Z0} years cornmencing on the day of 2007. 3. The parties wish to record a reference to the Lease to declare that the Property is subject to all of the provisions contained in the Lease. 4. This Memorandum is not intended to alter any of the terms and provisions of the Lease, but is to serge as notice of the existence of the Lease. ATLANTA:4~41~59.b 1N WITNESS WHEREOF, LESSER and LESSEE have caused this Memorandum of Lease to be duly executed on the day and year first Written above. WITNESSES: THE CITY GF DENTQN, TEXAS VISY RECYCLING, INC. By: By: _Z_ ATI,ANTA:49414a9.6 CITY ACKN4wLEDGEMENT THE STATE 4F TEXAS CQL~NTY OF DENTQN BEFORE ME, the undersigned authority came George C. Campbell, the City Manager of the City of Denton, Texas, who has executed this document as the duly-authorized officer of the City of Denton, Texas; on this the day of , 2007. ~sEai.~ Notary Public in and for the State of Texas THE STATE aF GEORGIA CQUNTY aF RQCKDALE 115 E~b4 ~ BEF~R~ ME, the undersigned notary came [n~e_] _ _ ,the Vice President of Visy Recycling, Inc., who has executed this document as tl~e duly-authorized officer of Visy R in In ~~ ecycl g, c., on this the ~~ day of w _ 1~~~, 2007. ~SEA,.,1~n~u_~., ~ ~~.ft.(~ 1~~~~ttii~~~ir~~~~ Notary Public ~~~~~ g, F '~~i,,~ ~~;..~o~aAr :~ ._ ... ~ '~ ' ~ r ~ . • ~ ~ ~ ~. pUBL~G~;~- ,y.F o..` •.~Q Esc ~`~,~;~~1~ /~rii ~ ~ R , emb. , . ~~ ````~ ~~i,~ ~ C~,, G ~~~~~ -1- ATLANTA:4941459.b E~ibit 3 ORDINANCE N0.2007- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A REGIONAL RECYCLABLES PROCESSING AGREEMENT WITH VISY RECYCLING, INC. (D/B/A PRATT RECYCLING) PROVIDING FOR THE CONSTRUCTION AND OPERATION OF A MATERIALS RECOVERY FACILITY ("MRF") LOCATED AT THE CITY'S LANDFILL; PROVIDING ADDITIONAL AUTHORITY TO THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT AND ANY OTHER RELATED DOCUMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas, having considered the proposed Regional Recyclables Processing Agreement with Visy Recycling, Inc., a Delaware Corporation (d/b/a Pratt Recycling); and having considered the favorable recommendation of the Public Utilities Board to the City Council at its September 24, 2007 meeting; and considering all other relevant factors; and WHEREAS, the City Council finds that there is a substantial need for the hereinabove described facility, and that the City Council has on many prior instances approved and engaged in recycling related pursuits and programs; and WHEREAS, considering the best interests of the City of Denton, Texas, the City Council finds and concludes that the above Agreement is fair, appropriate, and it is in the public interest of the citizens of the City of Denton, Texas; and accordingly should be approved; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations in the preamble are true and correct, and are incorporated herewith as part of this ordinance. SECTION 2. The City Manager is hereby authorized to execute a Regional Recyclables Processing Agreement (the "Agreement"), by and between the City of Denton, Texas and the firm of Visy Recycling, Inc., a Delaware Corporation (d/b/a Pratt Recycling), that relates to the construction and operation of a Materials Recovery Facility by Visy Recycling, Inc. at the City's Landfill Facility, for a term of twenty (20) years, in the form of the Agreement that is attached hereto and incorporated herein by reference. SECTION 3. The City Manager, is hereby authorized to exercise all rights and duties of the City of Denton, Texas under the Agreement; expressly including the execution and delivery of a Lease Agreement for the rental by the City of Denton, Texas, as Lessor of approximately six (6) acres of the City of Denton Landfill Facility to Visa Recycling, Inc., as Lessee, for a term of twenty (20) years; which Lease Agreement shall be subject to approval by the City Attorney, or his designate. 1 SECTION 4. The expenditure of funds, is hereby authorized, as provided in the attached Agreement. 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 WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY ~~ By: 2 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 Exhibit 4 DRAFT MINUTES PUBLIC UTILITIES BOARD September 24, 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 convened into an Open Meeting on Monday, September 24, 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, Phil Gallivan, Bill Cheek, John Baines, Randy Robinson and Bill Grubbs Absent: Dick Smith, excused Ex Officio Members: George C. Campbell, City Manager, excused Howard Martin, ACM Utilities Individual Consideration 5) Consider a recommendation of approval for the City of Denton to enter into a "Regional Recyclables Processing Agreement" and "Lease Agreement" with Visy Recycling, Inc., (d/b/a Pratt Recycling) to construct and operate a Regional Recyclables Materials Recovery Facility (MRF) at the city's landfill facility to provide the City of Denton and other regional communities with single stream recyclables processing services. Chair Newell expressed gratitude on behalf of the Board to Dick Smith for meeting with staff to update the lease agreement with Pratt Recycling to reflect the intentions of the Board. Vance Kemler, Director of Solid Waste, highlighted the changes to the agreement as requested by the Board. In a presentation to the Board, Kemler stated that all City recyclables will go to the Pratt MRF and Pratt can accept other cities' recyclables as well. Pratt will also contribute to the City education program for recycling, and the facility will be located adjacent to the landfill on Mayhill Road on City property. Kemler also reviewed the estimated revenues from the MRF for the City projected through five years with only the City's recyclables as determined by past and current collections. The initial land lease revenue is estimated at $31,350, education revenue at $4,640, half of which Pratt would maintain for the first two years to outfit the education and viewing rooms. Curbside and commercial recycling is estimated, at $5 a ton, producing $29,000 and $140,000 in revenue respective y. Gallivan questioned if the lease was based on acreage utilized by Pratt, or just the building area. Kemler responded that it is based on acreage at $.12 per square foot, for 6 acres, fixed for five years and adjustable every five years thereafter. The education rate is based on $.80 per ton. Both the curbside and commercial recycling revenues are based on a 7% increase in tonnage during the first year and a 5% increase every year thereafter. The City's rate of reimbursement is dependent on the amount of recyclables coming into the facility. Public Utilities Board Agenda September 24, 2007 2of3 2 In a previous meeting of the Public Utilities Board, options for curbside recycling providers were 3 presented. After a comparison of prospective vendors, the current provider, Allied Waste 4 Services provided the most cost savings over the five-year period of the contract. 5 6 Gallivan requested clarification of the reimbursement rate for collection of outside cities for Pratt 7 Recycling. Kemler responded the City will receive $5 per ton for all residential, single-stream, 8 recyclables received from other cities. Gallivan questioned how other cities would be paid for 9 their recyclables. Kemler responded other cities will have individual agreements between their 10 recycling providers and Pratt, and cities may or may not get reimbursed. 11 12 Board Member John Baines questioned how product will be measured upon entering the facility. 13 Kemler responded specific language was added to the agreement that trucks will enter through a 14 certified weighing station upon entrance and exit. The weight will be determined by subtracting 15 exit weight from entrance weight; in addition, the process will be videotaped and audited. 16 17 Baines questioned the audit process, including personnel required to handle it. Assistant City 18 Manager Martin responded Solid Waste does not have a staff auditor, but the City has an Internal 19 Auditor who will oversee the process. 20 21 Baines also questioned if the revenue was true revenue, net after cost. Martin stated that, looking 22 at the backup provided in the five-year estimate, there is approximately $175,000 on the 23 commercial side that is supported by commercial revenues to make up any short-term 24 differences. On curbside, the City is in good shape in terms ofmulti-family and residential, by 25 year five, using even conservative numbers.. 26 27 Kemler responded that expenses for year one included platting and TCEQ applications at 28 $13,000, waste disposal at approximately $13,000, and $2,320 for education fund totaling 29 $28,500 in estimated total expenses. In year five the City expenses were expected to be in the 30 $45,000 to $50,000 range, compared to $300,000 is revenue. 31 32 Baines questioned if these numbers included monitoring costs. Cheek also questioned if fuel 33 service charges were included. Baines wanted to know if the numbers presented were actual, 34 bottom line, net and questioned if there was a beta site that was used to confirm these numbers. 35 Kemler responded that no beta site was used, but the numbers were based on current and prior 36 amounts of material processed through the City's facilities and experience and experience with 37 costs. 38 39 Grubbs requested clarification on section 109.A of the agreement, where all total tons delivered 40 from all sources included just the City. Kemler responded that this language was designed to say 41 that all materials brought into the facility from the City or the City's Contractor will be weighed. 42 That weight will be used to establish the rate of reimbursement for the City. Subparagraph B 43 provides for Clean Commercial Recyclables delivered to the MRF by the City or City's 44 Contractors. Subparagraph C provides for all recyclables delivered to MRF by other cities or 45 respective contractors. 46 Public Utilities Board Agenda September 24, 2007 3 of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Kemler further clarified that wording was added to the contract to include that all incoming recyclables should be weighed and recorded. The charts then determine the City's rate of relm ursement. Grubbs, Gallivan and Cheek discussed the incentive for materials, other than collected by the Clty or City's contractors, being built into the escalating rate. Cheek stated that subparagraph D provides for clarification. Grubbs questioned if the language in the agreement gave the City priority. Kemler confirmed that, above all other entities, the City of Denton will have first priority. Board Member Robinson moved to approve with a second from Board Member Cheek. The motion was approved by a 6-0 vote. AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: Finance ACM: Jon Fortune ~TTR.TFCT Consider approval of a resolution nominating members to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. BACKGROUND The Denton Central Appraisal District (DCAD) has notified the City that the term for members on the current DCAD Board of Directors expires December 31, 2007. Therefore, DCAD is seeking nominations from taxing jurisdictions in the district. The attached resolution is available for the City Council to make a nomination(s) for members to the DCAD Board of Directors. The City Council can make up to five nominations for the Board of Directors. Once nominations from all taxing jurisdictions are received by DCAD, a ballot will be sent to the City. The City Council will then cast their vote to elect a member at the November 6, 2007, City Council meeting. The number of votes a taxing unit has is determined by their proportional share of the total levy in the district from the prior tax year. There are a total of 5,000 votes throughout the district. One thousand votes are the maximum number needed to elect a local representative/nominee to the Board of Directors. In 2005, the City and Denton Independent School District (DISD) collectively voted and elected Rick Woolfolk and Charles Stafford to the Board. This year, the City has 170 votes and DISD has 673 votes. The Denton Independent School District's Board of Trustees met on September 25, 2007, and nominated Rick Woolfolk and Charles Stafford to the DCAD Board of Directors. The current DCAD Board Members include Charles Stafford (Denton), Rick Woolfolk (Denton), Lee Baker (Flower Mound), Pearl Ford (Roanoke), and Doug Killough (Lewisville). Cf'HF,TITTT ,F, Applies only to every other year: Prior to Oct. l - DCAD notifies taxing entities of the number of votes they are entitled to cast for appropriating board members. Prior to Oct. 15 - Nominations for DCAD Board of Directors are submitted to DCAD by each jurisdiction (via resolution). Agenda Information Sheet October 2, 2007 Page 2 Prior to Oct. 30 - DCAD compiles comprehensive list of nominees and forwards list to each taxing unit in ballot forms. Prior to Dec.15th - Taxing units choose by written resolution a candidate(s). Name(s) of candidate(s) are submitted to DCAD along with the number of votes for each candidate. Prior to Dec. 31 St - DCAD tabulates votes and forwards results to taxing units. The five (5) candidates with the most votes become the Board of Directors as of January 1. Eligibility Guidelines: • The selection process is set forth in Section 6.03 of the Property Tax Code. This process is not an "election" governed by the Texas Election Code. It is an independent procedure unique to the property tax system. • An appraisal district director must reside in the appraisal district for at least two (2) years immediately preceding the date he or she takes office. Most residents are eligible to serve as a director. Most residents are eligible to serve as a director. An individual that is serving on the governing body of a city, county, or school district is eligible to serve as an appraisal district's director. • An employee of a taxing unit served by the appraisal district is not eligible to serve as a director. However, if the employee is an elected official, he or she is eligible to serve. • A statute relevant to the Board selection process prohibits nepotism and conflict of interest for appraisal district directors and chief appraisers. In summary, the law states that: ......."a person may not serve as director of closely related to anyone in the appraisal district or if related to anyone who represents owners in the district, or if the person has an interest in a business that contracts with the district or a taxing unit. A chief appraiser may not employ someone closely related to a member of the board of directors". • EXPERIENCE - In considering individuals to serve as directors, taxing units should look for expertise in such areas as accounting, finance, management, personnel administration, contracts, computers, real estate or taxation. Historical involvement in local government activities also indicates that someone should make an excellent Board member. Agenda Information Sheet October 2, 2007 Page 3 • FREQUENCY OF MEETINGS -The applicable statutes require the board of directors to meet not less often than once each calendar quarter. The DCAD Board meets more often than is required by law. FISCAL INFORMATION There is no fiscal impact to the City of Denton. F,X~TTRTT~ DCAD Nomination Process Memo Resolution Respectfully submitted: Bryan Langley Director of Finance DENTON CENTRAL APPRAISAL DISTRICT 3911 MORSE STREET, P O Box 2816 DENTON, T~xAS 76202-816 WWW.DtNTON~AD.COM MEMO T0: Denton County, School Districts and Cities That Levy A Tax . FROM: Joe Rogers, Chief Appraiser SUBJECT: Request for Nominations for Denton CAD Board of Directors DATE: September 7, 2007 It is time again forthe taxing jurisdictions to select five individuals to serve as the DCAD Board of Directors. Each jurisdiction may nominate up to five people #o be considered for the Board of Directors. According to Sectifln 6.03 of the Property Tax Code, it is the chief appraiser's responsibility to initiate this process, which is the purpose -of this memo. Please note that a chief appraiser does not have the authority, or the duty, to investigate, or judge, the qualifications of'the nominees. Further, a -chief appraiser can not extend the deadline for receiving nominations. Attached is a nominee form, Please return a form for each nomonee by October 1 ~9 ~4J~~s CALENDAR FOR APPOINTMENTS: 1. Prior to October 1st -Each jurisdiction will be advised of the number of votes they are entitled to cast fir Board members. See. Attached 2. Prior to October 15th -The governing body of each jurisdiction may nominate up to five candidate{s~ to the DCAD Board of Directors. The number of votes thateach jurisdiction has is not relevant in the initial nomination phase. 3. Priort~o October ~Oth - A carnprehensive list of the nominees will be compiled and this information will be sent to the taxing jurisdictions in the form of a .ballot. 4. Prior to December 15th -The taxing jurisdictions choose by written resolutifln the candidate, or candidates, of their choice.. The jurisdictions then submit the names of their candidates and the votes they cast for each candidate prior to the December 15th deadline. 5. Prior to December 31st - A tabulation of the votes will be forwarded to the jurisdictions. The five~can~idat~es that have received the most votes become the Board of ~Direc~ors as of January 1st. PHONE: (940) 349-3800 METP~O: (972) 434-602 FAX: (940) 349-3fi01 Memo, Appointing Board of Directors, September 7, X007 Page 2 SELECTING A NOMINEE AUTHORITATIVE GUIDELINES -The selection process is set forth in Section 6.03 of the Property Tax Code. This process is not an "election" governed by the Texas Election Code. It is an independent procedure unique to the property tax system. ELIGIBILITY - An appraisal district director must reside in the appraisal district for at least two years immediately preceding the date he.or she takes Office. Most residents are eligible to serve as a director. An individual that is servin on the overnin b . .. 9 g g ody of a city, county, or school d~stri~ct ~s eligible to serve as an appraisal district's director. An employee of a taxing unit served by the appraisal district is not eligible to serve as a director. However, if the employee is anelected official, he or she is eligible to serve. A statute relevant to the Board selection process prohibits nepotism and conflict of interest for appraisal district directors and chief appraisers. In summa ,the law states ry that: .........."a person may not serve as director if closely related to anyone in the appraisal district or if related to anyone who represents owners in the district, or if the person has an interest in a business that contract with the district or a taxing unit. A chief appraiser may not employ someone closely related to a member of the board of directors". FREQUENCY OFMEETINGS -The applicable statutes require the board of directors to meet not less often than once each calendar quarter. . DENTON CENTRAL .APPRAISAL DISTRICT 2007 DISTRIBUTION OF VOTES %OF TOTAL NUMBER JURISDICTIONS 2006 ADNSTED LEVY LEVIES OF VOTES SCHOOL DISTRICTS: SOl ARGYLE ISD........... $13,93$,832.13 1.387% 69 502 AUBREY ISD........... $7,132,299.48 0.710% 35 SOS DENTON ISD........... $135,035,952.05 l 3.437% 573 507 KRUM ISD ............. $10,892,550.09 1.084% S4 508 LAKE DALLAS ISD...... $20,470,954.38 2.037% 102 509 LEWISVILLE ISD....... $3 19,623,115.58 31.805% 1589 S 10 LITTLE ELM ISD....... ~ $22,248,845.78 2.214% 111 S 11 NOR~ST ISD........ $57,704,374.69 5.742% 285 S 12 PILOT POINT ISD...... $5,980,957.72 0.595% 30 S 13 PONDER ISI)........... $12,593,619.21 1.253% 63 S 14 BANGER ISD........... $ ] 0,469,093.36 1.042% 52 503 CAROLLTON-FARMERS BRANCH $44,201,153.00 4.398% 218 504 CELINA ISD $232,115.88 0.023% 1 S 1 S ERA ISD $3,813.00 0,000% 1 506 FRISCOISD $45,752,365.87 4.53% 227 S 17 PROSPER ISD $576,857.30 0.057% 3 S 16 SLIDELL ISD $374,414.90 0.037% 2 SCHOOL DISTRICTS TOTALS $707,231,314.42 ?0.374% 3515 GO1 DENTON COUNTY $101;528,025.23 10.103% 504 CITIES: C26 TOWN OF ARGYLE....... $ 1,225,812.85 0.122% 6 COl CITY OF AUBREY....... $556,838.62 0:055% 3 Cal TOWN OF BARTONVILLE.. $341,174.71 0.034% 2 C42 CITY OF DISH $62,413.33 0.006% 1 C03 CITY OF THE~COLONY... $13,437,472.64 1.337% b7 C04 CITY OF CORINTH...... $7,189,974.70 0.71 S% 36 C27 'OWN OF COPPER CANYON $243,110.02 0.024% 1 COS CITY OF DENTON....... $34,271,158.47 3.410% i70 C30 TOWN OF DOUBLE OAK... $613,982.39 0.061% 3 C07 TOWN OF FLOWER MOUND. $25,287,327.02 2.516% 125 C22 TOWN OF HACKBERRY.... $66,010.00 0.007% 1 C 19 TOWN OF HICKORY CREEK $978,629:57 0.097% 5 C08 CITY OF HIGHLAND VILLAGE $7,633,933.20 0.760% 38 C09 CITY OF JUSTIN....... $732,652.27 0.073% 4 Cl`8 CITY OF KRUGERVILLE.. $199,203.04 0.020% 1 C10 CITY OF KRUM......... $855,046.35 0.085% 4 C 11 CITY OF LAKE DALLAS.. $1,944,616.07 0.194% 10 C'.2S CITY nF T .at~FUtnnn VIi T a~,F aJa.ia ~va.r $142, -24.66 u.0i4% j 1 C12 CITY OF LEWISVILLE... $26,507,069.46 2.638% 13 2 C13 TOWN OF LITTLE ELM... $5,542,328.80 0.551% 28 C23 TOWN OF MARSHALL CREK $44,962.94 0.004% 1 C33 TOWN OF NORTHLAKE.... $354,183.57 O.U35% 2 C24 CITY OF OAK POINT..... $1,203,822.92 0.120% ~ . 6 C14 CITY OF PILOT POINT.. $1,057,382.25 0.105% 5 C 1 S TOWN OF PONDER...... $317,810.58 0.032% 2 C 17 CITY OF ROANOKE...... $3;555,431.81 0.354% 18 C 16 CITY OF BANGER....... ~ $2,009,937.89 0.200% 10 C34 TOWN OF SHADY SHORES X559,054.66 0.056% 3 C28 CITY OF TROPHY CLUB.. $2,592,468.33 0.258% 13 C02 CITY OF CARRflLLTON $25,809,977.00 2:568% 128 CITY OF CELINA ~ $124.71 0.000% I C21 CITY OF COPPELL $368,092.00 0.037% 2 C20 CITY OF DALLAS $6,523,123.00 0.649% 32 Cab CITY OF FORT WORTH $4,057,258.48 0.404% 20 C32 CITY OF FRISCO $15,700,243.27 1.562% 78 C39 CITY OF GRAPEVINE $1,000.83 0.000% 1 C38 CITY OF HASLET $226.00 0.000% 1 C29 CITY OF PLANO $3,758,562.07 0.374% 19 TOWN OF PROSPER $788.15 0.000% 1 C37 CITY OF SOUTHI,AKE $452;897.20 0.045% 2 $I96,1~8,825.84 19:523% 981 $1,004,958,165.49 100.000% 5000 NOMINATION FORM Please return this form to DGAD no later than October ~ 5, 2007. ~REminder.... our Y jurisdiction may nominate up to five candidates to the Denton Central A raisal District 8 pp card of Directors. Please include the address and phone number of your nominees. Name of your jurisdiction: Name of nominee: Name. Address City Zip Phone # (_____} ... - .~ .~ ..~ DENTON CENTRAL APPRAISAL DISTRICT BOARD OF DIRECTORS 2006-07 Rick Woolfolk 115 W. College St. Denton, Texas 76201 Lee Baker 616 Paisley Drive Flower Mound, Texas 75028 Pearl Ford P. 0. Box 381. Roanoke, TX 76262 Doug Killough 709 Juniper Lane Lewisville, Texas 75007 Charles Stafford 1903 Williamsburg Row Denton, Texas 76209 Ex-Officio Member Steve Mossman P. 0. Box 90223 Denton, Texas 76202 s:laur da~umerr~tslresolutionsl~7'lnom~~at~ ccntra~ appraisal dis~ict,dac REOL~JT~ON N0~ A REOLUT~ON NOMII~ATI~ IEMBE~. TO TIDE BOARD OF D~RE~TOR OF THE DE~TO~ CENTRAL APPIAL DISTRICT; AND DE~LAR~1 AN EFFECTIVE DATE WHEREAS, the term of office for the Board of Directors ~~ the Denton central Appraisal District v~ll expire on December 31, X007; and WHEREAS, the zty of Denton, Texas Wishes to nominate ~nen~be~s to std Board; NO~V, THEREFORE, THE COUNCIL OF THE CITY OF DENTON I~EREBY RESOLVES: SECTION I. The ~t~ of Denton, Texas hereby norniriates and as a members to the Board of Directors of the Denton Central Appraisal District for t~vo-dear terms to commence January 1, ~~08. SECTION 2, This resolutlon shall become effectlve i~Yli~ed~ate~ upon 1tS ~}a~~ae and app~ov~al, PASSED AND APPROVED this the dad of , ~0~7. PERRY R. l1~eNEILL, MAYOR ATTEST: ~ENN~IFER V~ALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORII~; EDWIN . SNYDER, CITY ATORNE~Y BY: AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: City Manager's Office CM: George Campbell, City Manager ~TIR.TF,CT Discuss and consider approval of a temporary ad hoc committee of the City Council to include Joe Mulroy, Chris Watts and Charlye Heggins to study and review code enforcement related issues. BACKGROUND Following a period of discussion, in 2006, regarding various property maintenance and other code related issues the City Council requested that the Denton Chamber of Commerce conduct an assessment of existing codes and citizen perceptions of enforcement efforts. In April 2006 the Leadership Denton Class undertook the project on behalf of the Chamber of Commerce. A report of the research and survey conducted by the Leadership Denton Class was delivered to the City Council in April 2007. Pursuant to the presentation by the Chamber, the city staff is preparing to now undertake a comprehensive review of code related issues with the expectation of making recommendations to the City Council to enhance the City's ability to better implement and enforce existing codes and/or improve the codes where appropriate. The City Manager has requested and Council has indicated a desire to appoint a temporary ad hoc committee of Council to work with the staff as determined appropriate to evaluate the code related issues being studied and policy initiatives that may result from such analysis. RECOMMENDATION It is recommended that council appoint an ad hoc temporary committee of Council to work with the City Manager and staff in the study of code related issues. AGENDA INFORMATION SHEET AGENDA DATE: October 2, 2007 DEPARTMENT: City Manager's Office CM: George Campbell, City Manager ~TIR.TF,CT Consider nominations/appointments to the City's Boards and Commissions. BACKGROUND The following boards/commissions require nominations: Construction Advisory & Appeals Board -Deputy Mayor Pro Tem Mulroy Human Services Advisory Committee -Council Member Montgomery Traffic Safety Commission -Michael Kozac has resigned. Council Member Heggins has nominated Michael Green. The City Secretary's office has verified his application and Council may vote on the nomination at this meeting. Zoning Board of Adjustment -Council Member Heggins. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary S:1Boards & CommlAgenda Info Sheet for Vacancies 10.2.07.docx Name: ~ ~ ~ Address 1 ~ t ' . _ c~cy~st~te~ Tele hone: Q p (Home) ~~ ,, (W~rk) Qualified voter of llenton? Oyes ^ no Zip; ~~~ E-maij; Date: Resident of Denton for y~Q years: 7/a.00 r PteQS~ Node: R,~OD6-Da3 "~'thr~s Policy"st~~s thoC pppornted ~,~rc~dls wr~I not be Y~ ornears vrt arry city tars, t~titi~y service char~g~, or over ob~igatians ovVed tie G"f~. 4ccupa~an: (if ~e~red, indite farmer occupation or prafession~ Please indicate hoard ~ eommissf o~n preferences: ~, ~i ort Advisor' Board _ Lfbrary Board ~ . 'on Board Animal Shelter Advisory Committee _ parks, Recreat~an & Beaut~ficat~ _ Community Development Ad~r.Committee ~, planning & ~onin~ Comrnissi4n Canstr~ckian Advisory ~ Appeals Board _ Pr~hlic Art Committee Historic Landmark Commis~ian ~, Public l~tilities Boar uman Services Advlso Committee / T~'affic Safety Commission ~~ ~ . _ Zoning Board of Adjustment e ou ever seared on a Ci of Denton board or eomrnissian~ ^ yes ~ no . Navy ~ Yf fires, which ones ~, ~ Yst an s eciaY w'ied e, edr~cation or erience that ~uali~ies you to se~'e in the areas you ha~'e please 1 y p ~ r lnd]cated. ~+l R f 1 ~ • 11' ~ _ ~ ~ ~. . ~ ~ i ~ ~ ~~ ~ _ . ~ ~ ~ / Awe s _ .a A ~'f A~ ~ ~~ ~ ~ ~ ~ i ~ ti ~ r r r rr rn _ Professional and/or community act(vities: APPt,~CATiori~ ~~: Boards & Commissions Application Office of the Cit~r Secretary City of Denton 215 ~. McKinney Denton, Texas 76201 ~. Fay: (940) 3498596 Z0 ~ ~0 3Jb'd ~SS~I ~F~5Z~8E~~~ ~t~ * 0 Z Baez ~8 i X60