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HomeMy WebLinkAboutResolutions R2008-001 to R2008-042RESOLUTION s:\our documents\resolutions\OS\solid waste gran[ authorization-jan 2008.doc RESOLUTION NO. R2008- OO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE FILING OF A PROJECT APPLICATION WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR A REGIONAL SOLID WASTE PROGRAM - LOCAL IMPLEMENTATION PROJECT; DELEGATING AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNATE, TO ACT ON BEHALF OF THE CITY IN ALL MATTERS THAT ARE RELATED TO THTS PROJECT APPLICATION, PLEDGING THAT IF FUNDING FOR THIS PROJECT IS RECEIVED, THE CITY OF DENTON, TEXAS WILL COMPLY WITH ALL PROJECT REQUIREMENTS OF THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY, AND THE STATE OF TEXAS, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the North Central Council of Governments ("NCTCOG") has been directed by the Texas Commission on Environmental Quality ("TCEQ") to administer solid waste project funds for the implementation of the NCTCOG adopted goal "Time to Recycle"; and WHEREAS, the City of Denton, Texas is qualified to apply for project funds under the "FY 2008 Request for Applications"; and WHEREAS, the City Council of the City of Denton has expressed their support and interest regarding the above-referenced solid waste project; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby delegates and authorizes the City Manager, or his designate, to complete the application and send in the application to request project funding under the North Central Texas Council of Governments' "Request for Applications" for the implementation of the Regional Solid Waste Management Plan; and the City Council hereby further empowers and authorizes the City Manager, or his designee, to act on the behalf of the City in all matters that are related to the project application, and any subsequent project contract(s) that may result therefrom. SECTION 2. Should the project be funded, then the City of Denton, Texas shall comply with the requirements of the North Central Texas Council of Governments, the Texas Commission on Environmental Quality, and the State of Texas. SECTION 3. The project funds and any project-funded equipment and facilities will be used solely for the purposes for which they are intended under the Project. SECTION 4. The activities of the city shall comply with and support the adopted local and regional solid waste management plans adopted for the geographical area in which the activities are performed. s:\nur documents\resolu[ions\OS~solid waste grant au[horivz[ion-jan 2008doc SECTION 5. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the D`Gk day of_~~, 2008. . ~~~`~~~ PERK R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APP VEDA O LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION S:\Out Documents\Resnlntions\08\Resolulion (or FY 2009 Congressional Priority Projects (Peb. 200R).dnc RESOLUTION NO./~~,~ A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S FISCAL YEAR 2009 CONGRESSIONAL PRIORITY PROJECTS FOR THE SECOND SESSION OF THE 110"` CONGRESS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Second Session of the 110`" Congressional Session convened on January 3, 2008; and WHEREAS, the Congressionatdelegation has made a request for Congressional Priority Projects which are projects that are eligible for Federal funding; and WHEREAS, the City Council desires to approve the City of Denton's fiscal year 2009 Congressional Priority Projects, attached as Exhibit "1 "; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton's fiscal year 2009 Congressional Priority Projects for Second Session of the 110"' Congressional Session are approved as set forth in Exhibit "l," incorporated herein and made a part of this Resolution for all purposes. SECTION 2. The Mayor and City Council, City Manager, and the City Attorney, or their designees shall communicate the items included in the fiscal year 2009 Congressional Priority Projects to members of the Second Session of 110`h Congressional delegation. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~-om~, ~~ ~ h~~ o.~~ APPRcC)VED AS'TO LEGAL FORM: EDWIN M. SNY - E ,CITY ATTORNEY R. McNETLL, MAYOR ~_~~ BY. EXHIBIT 1 `; . _<- city ®fficials Mayor Perry McNeill Mayor Pro Tem Pete Kamp Deputy Mayor Pro Tem Joe Mulroy Councilmember Charlye Heggins Councilmember - Jack Thomson i Councilmember Chris Watts Councilmember Bob Montgomery 4 i CITY STAFF City Manager George Campbell ' Assistant City Manager Howard Martin Assistant City Manager Jon Fortune Assistant City Manager Fred Greene For more information please contact: John Cabrales Public Information/Intergovernmental Relations Officer 215 E. McKinney St. Denton, TX 76201 940-349-8509 john.cabrales@cityofdenton.com _.. _ _ FY 2009 Table ®# C®n$e11t~ PROJECTS PAGE ~ a~ ,. e .-:.... Denton Municipal Airport [DTOI Safety and Security Enhancements The City of Denton appreciates the delegation's support for this priority and fully re- spectfully request continued support for this priority project. DTO plays. an important role in the regional economy, serving as a general aviation hub for North Texas. As a result of substantial capital investments by the City of Denton and TxDOTAviation, the Denton Airport has increased the number of private developments on the field. These developments have in turn increased the airfield employment base by more than 40 percent and the development pace is projected to continue to grow. The Denton Airport is requesting $990,000 in discretionary funding for security enhancements. These improvements include security fencing and controlled access points to increase airport security and wildlife control. This project is recognized in the current Airport Master Plan. FAA personnel have identified the lack of security fencing as a weakness that needs to be addressed. The installation of the security fencing will further facilitate the current growth trend on the facility as more and more corporate aircraft operators will only utilize secured facilities. ~ E cn~ ~ ~" r 0 DENTQN FY 2009 Denton Airport has approximately 240 based aircraft and experiences more than 100,000 operations per year with a large amount of corporate jet and a steady increase in air cargo activity. The airport attracts aircraft operations from all over i the world due to its major maintenance facilities as well as its location and. con- '_ venience. The addition of the newly aligned primary taxiway has increased the j safety and capacity of the airport for airport users. Completed projects over the past year at the airport include: • Completion of a new terminal and administration building. • Completion of a new parallel taxiway which can serve as an emergency landing surface should the runway be closed or unusable.. Future planned projects at the airport include: • The extension of the runway to 7,000 feet. • The design and construction of a new taxiway from the runway to the southeast side of the airport to improve development opportunities. For more information please contact: Airport Mark Nelson Transportation Director 5000 Airport Road Denton, TX 76207 940-349-7702 mark nelson@cityofdenton.com The Hickory Street Corridor Project will link Downtown Denton's historic square (on the Na- tional Register of Historic Places) to the future Denton County Transportation Authority (DCTA) rail station and the Multimodal Transit Facility on the east and to the University of North Texas (UNT) to the west. This connectivity is critical to the City of Denton as we work to improve mobility to and through our Downtown Square. Also, a major catalyst project that will create more than 430 new residential units and:over 50,000 square feet of new office. and retail space is in the planning stages. The project is located on the southeast corner of the Downtown Square. New, wider, safer and accessible sidewalks are needed to facilitate pedestrian and bicycle traffic generated by new commercial development and the transit station in the Downtown area. Downtown Denton Development Improvements In the Summer of 2007, the City selected a site for the $3.1 million Downtown Denton Multimodal Transit Facility that will compliment the proposed DCTA commuter rail station off of E. Hickory Street and Railroad Street. The Hickory Street Corridor will be the critical link from the Downtown Denton Multimodal Transit Facility to historic Downtown area and to the Univer- sity of North Texas. The City greatly appreciates the federal funding the delegation obtained for this important project. Denton Downtown Development Improvements: Hickory Street CorridorProiect FY 2009 Cedar Street Capital Improvement Project On August 20, 2007, work began on the Cedar Street Capital Improvement Project; we anticipate that it will be completed by March 2008. The Cedar Street Improvements will mirror the look of the square improvements, which were completed in 2001. The Cedar Street Project will replace all water and sewer lines, many of which are over 50 years old. The project will also widen sidewalks, making it ADA accessible for the first time in history. Street trees, benches, bike racks and pedestrian amenities will also be added. The estimated cost for this project is $1.2 million; more than $800,000 of it comes from CDBG Economic Development Initiative and Neighborhood Initiative funds. This project will help enhance mobility and aesthetics as well as upgrade utility lines on the west side of the Downtown Square. please contact: Downtown Development Linda Ratliff Director of Economic Development 215 E. McKinney St. Denton, TX 76201 940-349-7774 linda. ratliff@cityofdenton.com Denton Regional Public Safety Training.Facility The City of Denton appreciates the FY 2008 funding provided for this project, is requesting $4.1 million in discretionary funding for technology uses associated with the planked con- struction of astate-of-the-art joint police and fire regional public safety training facility: The new facility presents the City of Denton an opportunity to become a leader in setting higher standards for quality emergency service training; which adds to homeland security pre- paredness and improved community safety. The City expects to exceed both. the academic and technical requirements for emergency responders as well as responders from the entire region. Partnerships with area, colleges, as well as other area public safety agencies, . are already being developed. In November 2004, the City purchased an 88-acre site for the building of this regional train- ing facility at a cost of $2.03 million. In July 2005, the City hired Kirkpatrick Architectural Studio for $205,500 to work on the master plan for the facility. Several meetings have been held with stakeholders of the training center, such as North Central Texas College (tJCTC), to establish their needs and criteria for this regional facility. In Ju1y2007, the City Council approved almost $12.6 million for the construction of this regional training facility that will include: atwo-story residence burn building, outdoor class room, high rise burn building, an Urban Search and Rescue structural collapse area, a trench rescue site, a confined space rescue site, a 10-lane shooting range and a shoot house. There will also be a 20;500 square foot classroom that will allow public safety personnel from around the region to meet and exceed ongoing day-to-day training requirements from basic academies to advanced programs through our partnership with NCTC. This regional training will also improve mu- tual aid and interjurisdictional relationships. Our hope is to open the regional public safety training facility sometime in early 2009. FY 2009 Fire Station #7 The first phase of the regional public safety training facility began on April 30, 2007, with the opening of fire station #7 on a portion of this 88 acre site. This fire station was awarded a Gold Leadership in Energy and Environmental Design (LEED).rating from the United States Green Building Council (USGBC). This is only the second fire station in the nation to receive this rat- ing. This building was designed and built using LEED standards to provide a state of the art fire station and incorporate the concepts of sustainable site development, water savings, energy efficiency, environmentally "friendly' materials selection, and indoor environmental quality. The facility received 42 LEED. points, 39 points are required for a Gold rating. The building serves as an educational tool that can be used to demonstrate the benefits of LEED and Green Build- ing designs. 1 classroom multimedia technology. For more information please contact: Public Safety Fred Greene Assistant City Manager 215 E. McKinney St. Denton, TX 76201 940-349-8354 fred.greene@cityofdenton.com The $4.1 million discretionary funding request will be used to fund the advanced. technical needs of this regional public safety training facility. Specific technology requests include $3.5 million to fund Use of Force and Driving simulators and $600,000 to fund administrative/ RESOLUTION S:\Our Documents\Resolutions\08\Tax Abatement Policy.doc RESOLUTION NO. aDQ 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, RENEWING A POLICY FOR TAX ABATEMENT FOR THE CITY OF DENTON TO ESTABLISH GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT AGREEMENTS; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on June 6, 2000, the City Council adopted guidelines and criteria, known as the Denton Policy for Tax Abatement (sometimes referred to as "Policy"), passing by Resolution No. 82000-028; and WHEREAS, on May 1, 2001, the City Council amended the Policy to allow waiver of the five million dollar threshold and the maximum tax abatement percentage; to define professional positions; to make other changes as set forth in the amended Policy; and WHEREAS, on August 19, 2003, the City Council amended the Policy to make additional changes in the Policy and under the provisions of the Tax Code the Policy expired on August 19, 2005; and WHEREAS, on December 6, 2005, the City Council amended the Policy to make additional changes in the Policy; and WHEREAS, the City Council desires to promote economic development within Denton; and WHEREAS, providing tax abatement and other economic development incentives within the City and its extraterritorial jurisdiction will likely contribute to the economic development of . Denton by encouraging major investment, the creation of jobs, and other economic development benefits; and WHEREAS, the Property Development and Tax Abatement Act, Chapter 312 of the Tex. Tax Code, allows the city to establish its own criteria for tax abatement and the City has previously adopted guidelines for tax abatement by passing resolutions Nos. 890-018, 898-004, 82000-028, 82001-020, 82003-021, and 82005-057; and WHEREAS, the City Council deems it in the public interest to continue to be eligible for participation in tax abatement and to adopt policies, guidelines and criteria governing tax abatement agreements to be known as the Denton Policy for Tax Abatement; NOW, i THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The polices, guidelines and criteria found in the Denton Policy for Tax Abatement, attached hereto as Exhibit A and,made a part of this Resolution and incorporated S:\Our Documents\Resolu[ions\08\Tax Abatement Policy.doc herein for all purposes, are in all things approved and adopted. From and after the effective date of this Resolution, the attached Denton Policy for Tax Abatement shall constitute policy guidelines and criteria governing tax abatement agreements for the City of Denton in accordance with Chapter 312 of the Tex. Tax Code. SECTION 2. Pursuant to Tex. Tax Code Section 312.002(c) the guidelines and criteria adopted herein shall be effective for two (2)~ years, during which time the guidelines may be amended or repealed by a vote of/< of the members of the Council. SECTION3. The City Council hereby reasserts its decision to become eligible to participate in tax abatement. The City Council provides certain tax incentives applicable to business enterprises in various reinvestment zones which are established in the City, in accordance with the applicable provisions of Chapter 312 of the Tex. Tax Code and in accordance with the guidelines and criteria established in the attached Exhibit A and in the amended Policy. SECTION 4. This Resolution shall become effective immediately upon its passage and ` approval at the regular meeting of the City Council of the City of Denton, Texas, on the day of , 2008, at which meeting a quorum was present and which meeting was held in accor once with e provisions of Tex. Gov.'t Code §551.001, et seq. PASSED AND APPROVED this the S~J day of , 2008. t ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. ~ APPR ~ VEDA TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ~...~ ~~ z%4/~i t C ®D PERRY . McNEILL, MAYOR Page 2 of 2 December 2005 Tax Abatement Policy EXHIBIT A DENTON POLICY FOR TAX ABATEMENT L GENERAL PURPOSE AND OBJECTIVES The City of Denton (City) is committed to the promotion of high quality development in all parts of the city and to an ongoing improvement in the quality of life for its citizens. Insofar as these objectives are generally served by the enhancement and expansion of the local economy, the City will, on a case-by-case basis, give consideration to providing tax abatement as a stimulus for economic development in Denton. It is the policy of the City that said consideration will be provided in accordance with the procedures and criteria outlined in this document. Nothing herein shall imply or suggest that the City is under any obligation to provide tax abatement to any applicant. All applicants shall be considered on a case-by-case basis. Abatements will be considered only as inducements to generate development that otherwise would not occur. Abatements will not be considered if construction of a project already has begun. Tax abatements, as described in this Policy, will be available for new and/or existing facilities and structures and for businesses wanting to locate, expand or modernize, existing or new facilities and structures, including, without limitation, basic industries, corporate office headquarters or distribution centers, except as this Policy may be limited for property described in Section 312.211(a) of the Texas Property Tax Code (Vemons Texas Civil Statutes Annotated, hereinafter referred to as "Tax Code."1 II. ECONOMIC DEVELOPMENT PARTNERSIIIP BOARD Requests for tax abatement shall be reviewed by the Economic Development Partnership Board ("Board"), the Board being comprised of two City Council members, two Chamber of Commerce Board members, two representatives from the top twenty taxpayers, and one representative from the University of North Texas. The Board serves as a recommending body to the City Council regarding whether economic development incentives should be offered in each individual case. Its recommendation shall be based upon an evaluation of information submitted in the tax abatement application and any additional information requested by the Board or presented to the Board. The Tax Abatement Application shall be substantially in the form of Exhibit A of this Policy. All meetings of the Board shall be held in compliance with the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. III. VALUE OF INCENTIVES The criteria outlined in the Application will be used by the Board in determining whether or not it is in the best interests of the City to recommend that tax abatement be offered to a particular project. December 2005 Tax Abatement P°licy Specific considerations will include the degree to which the individual project furthers the goals and objectives of the community as described in the Denton Comprehensive Plan, as well as the relative impact on growth, employment, expansion of the tax base, and economic development. New, expanding and modernizing businesses may be considered for abatement if the minimum threshold, as described in Table 1 below, is met. Once a determination has been made that tax abatement should be offered, the value and term of the abatement may be determined by referencing the following table: TABLE l: Establishes a framework for considering the length and percentage of abatement according to assessed real property value of improvements and of tangible personal property located on the real property. VALUE OF STRUCTURE AND PERSONAL PROPERTY IN MILLION DOLLARS YEARS OF ABATEMENT PERCENTAGE OF ABATEMENT 100 IO 25% 80 9 25% 65 8 25% 50 7 25% 35 6 25% 20 5 25% 15 4 25% 10 3 25% 5 • 2 25% To qualify, companies must meet the minimum threshold of the Policy in the first 24 months from the execution of the agreement or as specified in the tax abatement agreement. If upon initial application a project qualifies for tax abatement under the guidelines set forth in this Policy, the City may consider granting an additional 5% abatement for each one of the following factors provided, however, that the total tax abatement does no[ exceed 50% annually or continue for a period of more than ten years. No applicant may receive credit for more than five of the following factors: • The project will occupy a building that has been vacant for at least two years; • The project will create high-skilled, high-paying jobs as documented by the applicant; (A breakdown of number of jobs perjob classification and entry level wage per classification will be used to determine eligibility); • The project will involve a significant relationship with one of the two universities in Page 2 of 16 December 2005 Tax Abatement Policy Denton; • At least 25% of the new jobs created by the project will be filled by Denton residents; • The project will provide knowledge-based jobs (at least 25 percent of jobs require college bachelors degree at entry level); • The project will donate significant public art to the community. (To qualify, donation must be approved by Greater Denton Arts Council and City Council); • The project will donate significant materials/equipment to the public schools (to qualify, donation must be approved by DISD and City Council); • The project will create improvements to the Denton Central Business District; • The project will result in the formation of a business park; • The project is an international or national headquarters facility. • The project is a medical manufacturing or research facility. The total tax abatement may not exceed 50% annually for ten years. All abatements are subject to final approval of the City Council. Even though a project may meet the criteria as set forth in this Policy, an application may be denied at the discretion of the City. Tax abatement shall not apply to any portion of the land value of the project. The thresholds as described in Table 1 are considered guidelines for establishing the Tax Abatement Agreement terms. However, the City may determine that a lower or higher percentage and/or a shorter or longer term of abatement may be more appropriate for an individual project. If abatement is approved, the City may consider applying all or a portion of the abatement in the first year or during any shorter period within the term of the tax abatement agreement. For example, an approved abatement of 25 percent for four years may be applied as 100 percent abatement for one year. When the City of Denton determines that incentives are required to retain existing businesses, which propose to improve or redevelop property within the City limits, the Denton City Council may consider these "special projects" on a case-by-case basis and reserve the right to waive the minimum threshold and/or exceed fifty percent (50%) in tax abatement. The City of Denton may also take into consideration as "special projects" the expansion redevelopment of existing businesses that create new or additional professional jobs. Abatement hereunder will only apply to the increased valuation of the improvements over the appraised value of the property prior to such improvements as same is established by the Denton Centml Appraisal District the year in which the tax abatement agreement is executed. The City may also consider other tax incentives authorized bylaw. Professional jobs are defined as "occupations which require specialized and theoretical knowledge which is usually acquired through college training or through work experience and other training which provides comparable knowledge; a calling requiring specialized knowledge and often long and intensive academic preparation; requires some research, analysis, report writing and presentations. Special licensing, certification, or registration may be required to perform the job task; the work of professional positions is creative, analytical, evaluative, or interpretive, and is characterized by personal responsibility to keep abreast of and exercise judgment and broad perspective in the application of an organized body of knowledge that is constantly studied to make new discoveries and interpretations or to improve the data, materials and methods; may involve some supervision and budgeting/planning." Page 3 of l6 December 2005 Tax Abatement Policy A business park is defined as a multi-building, multi-tenant, master planned complex of approximately one million square feet or more of under roof, constructed to house manufacturing, distribution, assembly, and office facilities. When the City determines that abandoned property may require additional incentives to promote economic development that generally satisfies the requirements of this Policy, the City may waive the minimum threshold and/or exceed fifty percent (50%) in tax abatement, or consider other tax incentives for special projects to redevelop abandoned buildings consistent with existing law. For the purpose of this Policy, an abandoned building is defined as a building that has been identified as being suitable for commercial or industrial development, has been vacant for a minimum of five years or has substantially declined in appraised value. Abatement would only be considered on the increased valuation of the improvements in each year covered by the tax abatement agreement over the value of the property for the year in which the tax abatement agreement is executed. The City may also consider other tax incentives authorized bylaw. Preliminary Application 1V. PROCEDURAL GUIDELINES Any person, organization or corporation desiring that the City consider providing tax abatement to encourage location or expansion of facilities within the limits of the jurisdictions shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that the City is under any obligation to provide tax abatement to any applicant. A. Applicant shall complete the attached "Application for Tax Abatement." B. Applicant shall prepare a map or other documents providing the following: • precise location of the property and all roadways within 500 feet of the site • existing uses and conditions of real property • proposed improvements and uses • any proposed changes in zoning • compatibility with the Denton Comprehensive Plan and applicable building codes and City ordinances. C. A complete legal description shall be provided. Applicant shall complete all forms and information detailed in the Application and submit all information to the City Manager, City of Denton, 215 E. McKinney, Denton, TX 76201. D. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. E. The application will be distributed to the appropriate City departments for internal review and comments. Additional information may be requested as needed. Page 4 of 16 December 2005 Tax Abatement Policv Copies of the complete application package and staff comments will be provided to the Board. G. Fiscal agents of the City will review the application for comments and recommendation. Additional information may be requested as needed. Consideration of the Aaalication H. The Board will consider the application at a regular or called meeting(s). Additional information may be requested as needed. I. The recommendation of the Board will be forwarded, with all relevant materials, to the City Council. J. If the City Council decides to grant a tax abatement, it shall call a public hearing to consider establishment of a tax reinvestment zone in accordance with Section 312201 of the Tax Code. The reinvestment zone must meet one or more of the criteria of Section 312.202 of the Tax Code. K. The City Council shall hold a public hearing and determine whether the project is "feasible and practical and would be of benefit to the land to be included within the zone and City after the expiration of the tax abatement agreement in accordance with Section 312.201." Special consideration shall be given to policies noted in the Denton Comprehensive Plan when designating a tax reinvestment zone. L. The City Council may consider adoption of an ordinance designating the area described in the legal description of the proposed project as a commercial/industrial tax abatement zone. M. The City Council may consider adoption of an ordinance or resolution approving the terms and conditions of a contract between the City and the applicant governing the provision of the tax abatement and the commitments of the applicant, including all the terms required by Section 3 ]2.205 of the Tax Code and such other terms and conditions as the City Council may require. Should the commitments subsequently not be satisfied, the tax abatement shall be null and void (unless the tax abatement agreement provides for a recapture of the property tax revenue lost proportionate to a partial failure to meet the minimum thresholds set forth in the agreement) and all abated taxes shall be paid immediately to the City of Denton and all other taxingjurisdictions participating in the tax abatement agreement. Provisions to this effect shall be incorporated into the agreement. N. The City reserves the authority to enter into tax abatement agreemenu at differing percentages and/or terms as set forth in the guidelines of this Policy, consistent with the requirements of the Tax Code. Page 5 of 16 December 2005 7"as Abatement Policy Any tax abatement agreement will address various issues, including but not limited to, the following: 1. General description of the project; 2. Amount of the tax abatement and percent of value to be abated each year; 3. Method of calculating the value of the abatement; 4. Duration of the abatement, including commencement date and termination date; 5. Legal description of the property; 6. Kind, number, location and timetable of planned improvements; 7. Specific terms and conditions to be met by applicant; 8. The proposed use of the facility and nature of construction; 9. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration and assignment. Annual Evaluation Upon completion of construction, the City Council shall receive from the City Manager an annual evaluation of each abatement to insure compliance with the agreement and to report possible violations of the agreement to the taxing entities. After new tax base numbers are received in July of each year, the City Manager and his staff will have ninety (90) days to review and prepare a breakdown of those figures. Local Businesses and Historically Underutilized Businesses Businesses receiving a tax abatement are asked to use diligent efforts to purchase all goods and services from Denton businesses whenever such goods and services are comparable in availability, quality and price. The~City of Denton also encourages the use, if applicable, of qualified contractors, subcontractors and suppliers who are historically underutilized businesses based on information provided by the General Services Commission pursuant to Chapter 2161 of the Government Code. In the selection of subcontractors, suppliers or other persons or organizations proposed for work on this Agreement, the OWNERS agree to consider this Policy and to use their reasonable and best efforts to select and employ such companies and persons for work on this Agreement. Job Recruitine from Low-Moderate Income Census Tracts Businesses receiving tax abatements are asked to endeavor to make available, or endeavor to cause lessees or assignees to make available, full-time or part-time employment with on-the job training for Denton citizens. In this effort, the business, lessee or assignee is encouraged to recruit from the low-moderate income Census tracts as further defined in the Concentration of Low/Mod Income by Block Groups shown below. Page 6 of 16 December 2005 Tas Abatement Policy DENTON,TEXAS Concentration of Low/Moderate Income households by Block Groups vPa 0 Concentration of Low/Mod Income by Block Groups 0-50% 51%-60% 61% -70% 71%-80% 81%-90% 91 % - 100% Page 7 of I6 December 2005 Tax Abatement Policy EXIDBIT A The City of Denton Tag Abatement Application About the Application... The Tax Abatement Application provides the City with specific information on the project. The information requested in the Application is designed to address the criteria developed within the City of Denton's Tax Abatement Policy. The information serves as the basis for fiscal analysis and overall project evaluation. This evaluation is provided to Council Members and serves as a source document during City Council deliberations. The Application And The Agreement.. Specific information from the Application (such as value of new investment and employment commitments) is incorporated into the Abatement Agreement. In fact, the Application is an attachment to [he Agreement. Since the agreement is a binding contract, it is important that each question on the application be answered in full and as realistically as possible. Simply put, the application is part of the process from start to finish so you'll want to make sure you're comfortable with the contents. When is The Application Final? The answer to this question is very simple: When you tell us, "It's final." It is not uncommon for a property owner(s) to submit numerous Applications as drafts for informational and evaluative purposes only. As conversations continue, the property owner will submit a finalized version of the Application that includes all of the commitments agreed to during the discussions. WhatAbout Confrdentiality7 Section 312.003 of the Texas Tax Code makes confidential information provided to the City as a part of this application that describes the specific processes or business activities to be conducted or the equipment or other property to be located on the property. This information is not subject to public disclosure until the tax abatement agreement is executed. Section 522.131 of the Texas Government Code (Texas Public Information Act) makes confidential information which relates to economic development negotiations between the City and a business prospect that the City seeks Io have locate, stay or expand in or near the territory of the City. The information must relate to a trade secret of the business prospect, commercial or financial information which the business prospect can demonstrate based on specific factual evidence that disclosure would cause substantial competitive harm to the person from whom the information was obtained or information about a financial or other incentive being offered to the business prospect by the City or by another person. Information about a financial or other incentive being offered to the business prospect is required to be disclosed when an agreement is made with a business prospect. The City is subject to disclosing most records and documents upon request under the Public Information Act. Acrnrdingly, please clearly indicate and mark any information you consider proprietary. This would include anything in your application which you consider a trade secret, commercial or financial information which you can demonstrate by speck factual evidence that would cause substantial competitive harm if disclosed, information which describes the specific processes or business activities to be conducted or the equipment or other property for which the taa abatement is sought, any financial or other incentive you may be seeking from the City or any other information you deem to be confidential under the law. Who is Authorized To Sign the ApplicationP Because the Application itself is non-binding, the person signing need not be the property owner or even Page 8 of 16 December 2005 Taa Abatement Policy an individual duly authorized to sign on behalf of the property owner. However, if an Agreement is reached, the Application will be an attachment to the Agreement and its contents will be binding through the authorized signature required on the Agreement. Page 9 of 16 December 2005 Tax Abatement Policy ~'"'UQ~pt~O~ ~ N A ~ ~O o/ D• O~ ~ ~ ~ V i B O d O G ~ ~ y ' r O N t ~('~O~~O 0~17~~000Or City of Denton Taz Abatement Application City of Denton Department of Economic Development Denton, Texas 76201 (940) 349-8305 (940) 349-8518 FAX www. c ityofdenton. com Linda. Ratliff(a cityofdenton.com Page 10 of 16 December 2005 Tax Abatement Policy APPLICATION FOR TAX ABATEMENT CITY OF DENTON, TEXAS 1. Property Owner .Company or Project Name Mailing Address Telephone Fax No. Websi[e Contact Name Title Mailing Address Telephone Fax No. Email Address 2. Provide a chronology of plant openings, closing and relocations over the past 15 years. 3. Provide a record of mergers and financial restructuring during the past ] 5 years. 4. Will the occupants of the project be owner or lessee? If lessee, are occupancy commitments already existing? 5. Is the project a relocation of existing facility or a new facility to expand operations? If relocation, give current location. Page 11 of 16 December 2005 Tax Abatement Policy 6. If an existing Denton business, will project result in abandonment of existing facility? If so, the value of [he existing facility will be subtracted from the value of the new facility to arrive at total project value. 7. Property Description. - Attach a copy of the legal description detailing property's metes and bounds. - Attach map of project including all roadways, land use and zoning within 500 feet of site. 8. Current Value. Attach copy of latest property tax statement from the Denton County Central Appraisal District (include both real and personal property). 9. Increased Value/Estimated Total Cos[ of Project. Structures $ Site Development $ Personal Property $ Other Improvements $ 10. {.,is[ any other 5nancial incentives this project will request/receive Estimated Estimated Water/Wastewater Infrastructure Assistance ~ $ 11. Give a brief description of the activities to be performed at this location, including a description of products to be produced and/or services to be provided. Page 12 of 16 Indicate amount of tax abatement and number of years requested for each taxing entity. December 2005 Tax Abatement Policy 12. Project Construction Phase A. Estimate percentage of project development and construction dollars [o be spent with Denton based contractors or sub-contractors. Construction costs $ Percentage local contractors B. Construction Employment Estimates: Start Date (Mo/Yr) Completion Date (Mo/Yr) No. of Construction Jobs Estimated Total Construction Payroll $ C. Describe any off-site infrastructure requirements: • Water • Wastewater • Streets • Drainage • Other Page 13 of 16 December 2005 Tax Abatement Policy 13. Project Operation Phase. Provide employment information for the number of years tax abatement is requested. At Project Ezisting Start Date At Term of Employment Information Operation (mo/yr) Abatement (if applicable) _/ A. Total number of permanent, full-time jobs B. Employees transferzed from outside Denton C. Net permanent full-[imejobs (A. minus B.) E. Total annual payroll for all permanent, full-time jobs (A.) F. Types of jobs created. List the job titles and number of positions in each category that will be employed at the facility. Provide average wage for each category. G. Estimate annual utility usage for project: 14. Describe any other direct benefits to the City of Denton as a result of [his project (e.g., sales tax revenue or project elements identified in Tax Abatement Policy, Section III). I5. Is property zoned appropriately? Yes No Current zoning. Zoning required for proposed project. Anticipated variances. Page 14 of 16 December 2005 Tax Abatement Policy 16. Is property platted? Yes No Will replatting be necessary Yes No 17. Discuss any environmental impacts created by the project. A. List any permits for which applicant must apply. Applicant will be required to provide City with copies of all applications for environmental permits upon completion of application(s). B. Provide record of compliance [o all environmental regulations for the past five years. 18. Provide specific detail of any businesses/residents that will be displaced and assistance that will be available from the requesting company. 19. Provide description of any historically significant area included within the project's area as determined by [he Historic preservation Officer. If any, give detail of how the historically significant area will be preserved. 20. Justification for Tax Abatement Request: Substantiate and more fully describe thejustification for this request. Include the amount of the abatement requested and show how it will contribute to the financial viability of the project. Submit attachments if necessary. 21. List additional abatement factors to be considered for [his project as outlined on pages 3 and 4 of [he Tax Abatement Policy. Page 15 of 16 December 2005 Tax Abatement Policy 22. Financial Information: Attach a copy of the latest audited financial statement or, in the case of a new project, a business plan. This [ax abatement application is submitted with the acknowledgement that additional certified financial information may be required. Authorized Signature Page 16 of ]6 RESOLUTION RESOLUTION NO. R2008-~ A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS REQUIRING THAT ALL SPECIAL EVENTS THAT ARE ON CITY REAL PROPERTY WITHIN THE CITY LIMITS OF DENTON, TEXAS SHALL HAVE MANDATORY RECYCLING SERVICES; THAT ALL SPECIAL EVENTS SPONSORED BY THE CITY OR ITS DEPARTMENTS WILL HAVE MANDATORY RECYCLING SERVICES FOR VENDORS AND ATTENDEES WHETHER ON OR OFF OF CITY REAL PROPERTY IN THE CITY OF DENTON, TEXAS; THAT THERE SHALL BE MANDATORY RECYCLING SERVICES AS TO ALL SPECIAL EVENTS THAT ARE CONDUCTED ON CITY-OWNED REAL PROPERTY IN THE CITY OF DENTON, TEXAS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, a municipal corporation, is committed to environmental concerns and environmental programs that reflect a serious municipal involvement and awareness on issues that affect the environment; and which environmental programs have a positive effect and impact on the City of Denton; and WHEREAS, the State of Texas has recognized the need for governmental recycling by enacting Texas Health & Safety Code, Section 361.425; and WHEREAS, the City of Denton, Texas has encouraged voluntary city-wide recycling activity for the past several years; and the City Council is of the opinion that it should further actively promote and require recycling, for the good of the overall community environment and as a good example of community stewardship to the environment; and WHEREAS, in furtherance of this policy, the Committee on the Environment of the City Council and the City Council have considered and discussed requiring mandatory recycling at all special events that are sponsored by Denton City Departments, and all special events that are conducted on City of Denton owned real property irrespective of the sponsor; and WHEREAS, the city staff is also committed to expanding recycling education efforts to encourage that special events not held on city-owned property can also offer recycling services; and WHEREAS, the City Council requires that from and afer the effective date of this Resolution, that any person or entity seeking to schedule a special event on City of Denton real property shall, in conjunction with its authorization to conduct the special event, at the same time, contact the city's Solid Waste Department, Recycling Division and arrange for such recycling services that are necessary and appropriate for the scheduled special event; and WHEREAS, the City Council requires that from and after the effective date of this Resolution, that for special events held and those not held on city real property, in which the City of Denton and/or a city department is listed as a sponsor of the event, and/or displays the city's logo or any department marker, it shall be the responsibility of the event's coordinator to arrange for such recycling services as are necessary and appropriate for the scheduled event, from the city's Solid Waste Department, Recycling Division; and WHEREAS, the City Council requires that from and after the effective date of this Resolution, that for special events, held by any entity on city real properties, where the city is not a sponsor it shall be the responsibility of the event's coordinator to arrange for such recycling services if necessary and appropriate for the scheduled special event, from the city's Solid Waste Department, Recycling Division; and WHEREAS, this Resolution is appropriate and 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 recitations contained in the above Preamble are hereby incorporated by reference as a part of this Resolution. SECTION 2. The City Council of the City of Denton, Texas hereby authorizes the adoption of mandatory recycling regarding all special events sponsored by the City of Denton, Texas, to be effective upon the effective date of this Resolution. SECTION 3. The City Council of the City of Denton, Texas hereby authorizes the adoption of mandatory recycling regarding all special events that are conducted by other entities or organizations or persons, on the real property owned by the City of Denton, Texas, to be effective upon the effective date of this Resolution. SECTION 4 The city staff shall be committed to expanding recycling education efforts to encourage that special events not held in city buildings and/or city owned real property can also offer recycling services. SECTION 5. The City Council may, from time-to-time consider changes to this policy as will be reflected by their future action. SECTION 6. This resolution shall become effective for all special events which occur on or after July 1, 2008. PASSED AND APPROVED on this the day of~ 2008. Q ~ ~y~ PERRY R. McNEILL, MAYOR ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: q APPROVED AS TO LEGAL FORM: EDWIN 1M~SNY~DER, CITY ATTORNEY BY~ /1 ~ RESOLUTION s:\our documents\resolutions\08\ro[ary club mardi gras alcohol selLdoc RESOLUTION NO.ICaDO P-OdS A RESOLUTION ALLOWING DENTON ROTARY CLUB TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE ROTARY CLUB MARDI-GRAS CELEBRATION ON FEBRUARY 9, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center and through the Park and Recreations Department co-sponsors the Rotary Club Mardi-Gras Celebration at the Civic Center; and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Rotary Club Mardi-Gras Celebration; and WHEREAS, Tom LaPoint doing business as Denton Rotary Club (called "Club"), has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Rotary Club Mardi-Gras Celebration on February 9, 2008; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that Club be the sole participant allowed to sell alcoholic beverages at the Rotary Club Mardi-Gras Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Club shall be the sole participant allowed to sell alcoholic beverages at the Rotary Club Mardi-Gras Celebration on Februazy 9, 2008 at the Civic Center upon the following conditions: 1. They shall be responsible to obtain the temporazy license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Rotary Club Mardi-Gras Celebration. S:\Our Documents\Resolutions\OSUto[ary Club Mardi Gras alcohol sell.doc SECTION 2. The City Manager or his designee is authorized to execute an agreement in conforinity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2008. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. \ ~ ~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: `!/. Page 2 of 2 c:\docume-1\jtmcleodUocels-1\temp\~cpgrpwise\rotary club mardi gaz celebration agrcementdoc QUAKERTOWN PARK AGREEMENT FOR THE ROTARY CLUB MARDI-GRAS CELEBRATION STATE OF TEXAS COUNTY OF DENTON This Agreement, made this ~ day of 2008, by and between the City of Denton, a municipal corporation, hereinafter referred to the "CITY" and Tom LaPoint doing business as DENTON ROTARY CLUB. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE 1 GENERAL The City grants to DENTON ROTARY CLUB the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter set forth, for the ROTARY CLUB MARDI-GRAS celebration on Febmary 9, 2008 to be held at the Quakertown Park. Attached hereto and made a part hereof by is a copy of the resolution passed by the City Council of Denton, Texas authorizing this privilege. This privilege does not extend beyond the date of the ROTARY CLUB MARDI-GRAS celebration set for the yeaz 2008. ARTICLE 2 SCOPE OF SERVICES DENTON ROTARY CLUB in order to exercise the privilege to sell alcoholic beverages must perform the following: A. DENTON ROTARY CLUB shall be solely responsible for the rental and payment for any booth space necessary for the sale of alcoholic beverages at the ROTARY CLUB MARDI-GRAS Celebration. B. DENTON ROTARY CLUB shall be solely responsible to obtain any temporary license and permit necessary for the selling of alcoholic beverages at the ROTARY CLUB MARDI-GRAS Celebration. C. DENTON ROTARY CLUB shall be solely responsible for the obtaining and paying for any security necessary for their sale of alcoholic beverages at the ROTARY CLUB MARDI-GRAS Celebration. DENTON ROTARY CLUB's failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the ROTARY CLUB MARDI-GRAS Celebration. ARTICLE 3 LOCAL RULES AND REGULATION DENTON ROTARY CLUB agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Quakertown Pazk Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. DENTON ROTARY CLUB shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. DENTON ROTARY CLUB will exercise reasonable caze and due diligence in their sale of alcoholic beverages at the ROTARY CLUB MARDI-GRAS Celebration. ARTICLE 4 INDEMNITY AGREEMENT DENTON ROTARY CLUB shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of DENTON ROTARY CLUB or its officers, shazeholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses aze hereby expressly reserved. ARTICLE 5 INSURANCE During the performance of the Agreement, DENTON ROTARY CLUB shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carvers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not less than $100,000 in the aggregate. B. DENTON ROTARY CLUB shall furnish insurance certificates or insurance policies at the CITY'S request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such 2 insurance shall not be canceled or modified without written notice to the CITY and DENTON ROTARY CLUB. In such event, DENTON ROTARY CLUB shall, prior to the effective date of the change or cancellation, serve substitute policies famishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To DENTON ROTARY CLUB DENTON ROTARY CLUB Tom LaPoint 1900 Highland Point Circle Denton, Texas 76210 (940)369-7776 To CITY: CITY OF DENTON: City Manager 215 E. McKinney Denton, Texas 76201 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of five (5) pages and one (1) exhibit, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE 8 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE 9 DISCRIMINATION PROHIBITED In performing the services required hereunder, DENTON ROTARY CLUB shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE 10 PERSONNEL A. DENTON ROTARY CLUB represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. ARTICLE 11 ASSIGNABILITY DENTON ROTARY CLUB shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits are attached to and made a part of this Agreement: Exhibit "A" Resolution N~ Q~'~s B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN WTINESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and DENTON ROTARY CLUB has executed this ement through its duly authorized undersigned officer on this the ~ day of 2008. CITY OF DENTON, TEXAS G RG C. CAMPBELL, C TYI MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY B fv APPR D AS LEGAL FORM: EDWIN SNYDER, CITY ATTORNEY BY: DENTON ROTARY CLUB TOM LaPOINT WITTIESS: BY: s:\our documents\resolutions\08trotary club mardi gran alcohol sell EXHIBIT A RESOLUTION NO./C ~C.'~1 ~' -(}~, j~'j~ A RESOLUTION ALLOWING DENTON ROTARY CLUB TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE ROTARY CLUB MARDI-GRAS CELEBRATION ON FEBRUARY 9, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center and through the Park and Recreations Department co-sponsors the Rotary Club Mazdi-Gras Celebration at the Civic Center: and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Rotary Club Mazdi-Gras Celebration; and WHEREAS, Tom LaPoint doing business as Denton Rotary Club (called "Club"), has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Rotary Club Mardi-Gras Celebration on February 9, 2008; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that Club be the sole participant allowed to sell alcoholic beverages at the Rotazy Club Mardi-Gras Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Club shall be the sole participant allowed to sell alcoholic beverages at the Rotary Club Mardi-Gras Celebration on February 9, 2008 at the Civic Center upon the following conditions: 1. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Rotary Club Mardi-Gras Celebration. S:\Our DocumenGSUtesolutions\08\Ro[ary Club Mardi Gras alcohol sell.doc SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the`J~ day of %~,1~. 2008. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY ~~~~ Page 2 of 2 RESOLUTION °- '~ s:\our documents\resolu[ions\OS\dcta rtc grant.doc RESOLUTION NO. ~Q ~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ENDORSING THE DENTON COUNTY TRANSPORTATION AUTHORITY APPLICATION TO THE REGIONAL TRANSPORTATION COUNCIL FOR A REGIONAL TOLL REVENUE FUNDING INITIATIVE (RTRFI) GRANT TO FACILITATE IMPLEMENTATION OF REGIONAL RAIL SERVICE FROM DENTON, TEXAS TO CARROLLTON, TEXAS WITH A CONNECTION TO THE DALLAS CENTRAL BUSINESS DISTRICT, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton County Transportation Authority ("DCTA") was created by Act of the 77th Session of the Texas Legislature in 2001; and WHEREAS, a Denton County Transportation Authority Interim Executive Committee was created and appointed contemporaneously with the effective date of the Act; and WHEREAS, the Interim Executive Committee, with significant input from the citizens of Denton County, authored a comprehensive Service Plan to provide public transportation to and for Denton County citizens; and WHEREAS, citizens of the City of Denton, Texas, elected to fund DCTA through a sales and use tax; and WHEREAS, the implementation of the Service Plan has been timely advanced, including: a county-wide confirmation election for DCTA; selection of a locally preferred alternative for the commuter line; environmental clearance for the alignment and preparation of initial design plans for the commuter rail line; and WHEREAS, to enable the Denton County Transportation Authority to meet its commitment to link with DART in Carrollton, Texas in late 2010, a funding commitment, secure financial plan and contract approvals for purchase of equipment and materials are now required to meet that timeline; and WHEREAS, the Denton County Transportation Authority regional rail line is an important component of the 2030 Mobility Plan for the North Texas Region to achieve congestion mitigation and air quality improvements; and WHEREAS, DCTA, as an eligible Denton County participant, has submitted an application to participate in the Regional Toll Revenue Funding Initiative which was created to equitably distribute the concession payment received from the State Highway 121 Comprehensive Development Agreement; and WHEREAS, DCTA has received Regional Transportation Council approval for Phase I funding of $57 million to contract for and acquire new railcars with innovative technology allowing operation on both non-electrified regional and electrified light rail trackage and has submitted an application for Phase II funding, in the RTRFI "New Project" category, to complete the final engineering and design, right-of--way acquisition, and construction documents to build - ~ s:\our documents\resolutions\OS\dcta rtc grantdoc the commuter rail line and necessary facilities to implement regional rail service for Denton County; NOW,'THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas, does hereby commend the Denton County Transportation Authority, its Board of Directors, officers, agents and employees for their efforts to build a public transportation system for the benefit of the residents of Denton County and have achieved remarkable progress in making regional rail a reality. SECTION 2. The City of Denton, Texas, does hereby endorse and recommend for approval by the Regional Transportation Council the funding application submitted by the Denton County Transportation Authority for Regional Toll Revenue Funding Initiative, including the Phase II component to fund and construct the DCTA regional rail line to Carrollton ($193 mil.) as a "New Project" submittal. SECTION 3. The City of Denton, Texas is hereby directed to transmit a copy of this Order, subsequent to its execution, to both the Chair of the Regional Transportation Council and the Chairman of the Board of the Denton County Transportation Authority. SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the '/ z/C day of ~ , 2008. -~3"~ PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ,@J'~ ~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION s:\our dowmen[s\resolutions\08\nthea res 2008 bonds (3).doc RESOLUTION NO. 2 p - O7 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority") was established as anon-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans; and WHEREAS, the City of Denton and the City of Arlington have requested the Authority to exercise the powers provided for in Section 53B.47 of the Texas Education Code, as amended; and WHEREAS, pursuant to such request, the Authority has issued student loan revenue bonds or otherwise borrowed money to obtain funds to purchase student loans which are guaranteed under the provisions of the Higher Education Act of 1965, as amended, and additional funds are now needed to continue the program; and WHEREAS, the Authority requests that the City approve the issuance of additional bonds to augment the Authority's student loan program; and WHEREAS, the Authority must restructure its current financings due to the ratings downgrade of the bond insurer insuring certain of its bonds; and WHEREAS, the Authority requests that the City approve the issuance of bonds to refund the Authority's insured student loan revenue bonds; and WHEREAS, the City wishes to approve the issuance of the Authority's bonds provided that City is not responsible in any way for such bonds; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver during 2008 taxable student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $95,000,000. The bonds or other obligations are to be issued for the purposes of refunding outstanding obligations of the Authority, obtaining funds to purchase student or parent loan notes which are guaranteed under the Higher Education Act of 1965, as amended, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. sooa~oso.t s:\our documcnls\resolutions\08\nthca res 2008 bonds (3).doc SECTION 2. That, in addition to the student loan revenue bonds approved in Section 1, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver during 2008 additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $60,000,000, to consist of student loan revenue bonds utilizing a 2008 Private Activity Bond Allocation. The bonds or other obligations are to be issued for the purposes of obtaining funds to purchase student or parent loan notes which are guaranteed under the Higher Education Act of 1965, as amended, refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 3. That, in addition to the student loan revenue bonds approved in Sections 1 and 2, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Tnc. to issue and deliver during 2008 additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $660,000,000 in order to refund its insured student loan revenue bonds. The bonds or other obligations are to be issued for the purposes of refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations, to the extent permitted by the pertinent financing documents and the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 4. That the City Council of the City of Denton, Texas, hereby grants its approval to the application of North Texas Higher Education Authority, Inc. fora 2008 Private Activity Bond Allocation Carry forward in an amount not to exceed $200,000,000, and hereby authorizes the Mayor to execute such application. SECTION 5. The City of Denton, Texas requests that the Authority exercise the powers enumerated and provided for in Section 53B.47, Texas Education Code, as amended, and that such non-profit corporation shall, in this connection, exercise such powers for and on behalf of the City of Denton, Texas and the State of Texas, as contemplated by Section 53B.47(e), (f) and (g), Texas Education Code, as amended. , SECTION 6. The City of Denton, Texas does not agree to assume any responsibility in connection with the administration of the Authority's student loan program. Sole responsibility for the administration of the Authority's student loan program is assumed by the Authority. SECTION 7. Further, it is recognized by the City of Denton, Texas that the instruments which authorize the issuance of bonds, notes, or obligations by the Authority will specifically state that the City of Denton, Texas is not obligated to pay the principal of or interest on the bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the payment of any obligations of said Authority whether theretofore or hereafter incurred; and in this connection, attention is called to the Constitution of the State of Texas, wherein it is provided that a city may incur no indebtedness without having made provisions for its payment, and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any 50049959.1 2 s:\our documents\resolutions\08\nthea res 2008 bonds (3).doc present or future funds, assets or money for the payment of any indebtedness or obligation of the Authority. SECTION 8. It is hereby officially found and determined that the meeting at which this resolution is passed is open to the public, as required by law, and that public notice of the time, place and purpose of said meeting was posted, as required by law. SECTION 9. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of / , 2008. V ~ /~%~ PERK . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APP VEDA O LEGAL FORM: EDWIN M. SNYD ITY ATTORNEY BY: 50049959.1 CERTIFICATE OF SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON following: I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the 1. On the 4th day of March , 2008, the City Council of the City of Denton, Texas convened in regular session at its regulaz meeting place in Ci Hall, with the duly constituted members of the City Council being as follows: Perry McNeil] Mayor Chazlye Heggins Council Member, District 1 Pete Kamp Council Member, District 2 and Mayor Pro Tem Jack Thomson Council Member, District 3 Chris Watts Council Member, District 4 Bob Montgomery Council Member, At Lazge Place 5 Joe Mulroy Council Member, At Lazge Place 6 and Deputy Mayor Pro Tem and all Counci] Members were present at said meeting, excepbthe following: Charlye Heggins Among other business considered at said meeting, the attached resolution, entitled: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH was introduced and submitted to the Council for approval and passage. After presentation and due consideration of the resolution, and upon a motion by Pete Kamp seconded by Joe Mulroy ,the resolution was duly passed and adopted by the City Council, to be effective immediately, by the following vote: b voted "For" 0 voted "Against" 0 abstained all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date. 50049959.1 2. The attached resolution is a true and correct copy of the original resolution on file in the official records of the City of Denton, Texas. The duly qualified and acting members of the City Counci] of the City of Denton, Texas, on the date of the aforesaid Council meeting are those persons above named; and according to the records of my office, each member of the City Council was given advance notice of the time, place and purpose of the meeting, and that said meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the entitled resolution, was posted and given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government Code. IN WITNESS THEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the 12th day of March , 2008. Jennifer Walters, City Secretary City of Denton, Texas (Seal) 50049959.1 2 RESOLUTION 's:\our documents\resolurions\OS\aviation program resolutiondoc RESOLUTION NO. ~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, SUPPORTING THE UNIVERSITY OF NORTH TEXA5 IN THE CREATION OF A FOUR- YEAR COMPREHENSIVE AVIATION SCIENCES PROGRAM AT THE DENTON, TEXAS CAMPUS, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the north Central Texas Council of Governments (NCTCOG) completed a study titled New Technologies and Industry Trends as part of the regional General Aviation and Heliport System Plan; and WHEREAS, the New Technology and Industry Trends report demonstrates that the 16- County North Central Texas Region is home to a diverse and thriving aviation industry; and WHEREAS, the New Technologies and Industry Trends outlines the need to train additional aviation professionals to avoid a regional and national shortage in the aviation workforce; and WHEREAS, the State of Texas lacks a public university with a comprehensive four-year college program for students who want to pursue an aviation career; and WHEREAS, the NCTCOG is supporting the establishment of a four-year collegiate aviation program in North Texas that would benefit the airlines and aviation-related businesses and would help further establish the region's leadership in the aviation industry; and WHEREAS, the 2003 Denton Airport Master Plan supports the establishment of an aviation educational institute; and WHEREAS, the administration at the University of North Texas, Denton has advised City of Denton officials they have a strong interest in participating in the establishment of an aviation program; and WHEREAS, many of the core curriculum needed for an aviation program may already exist in established Colleges in the University of North Texas, Denton encouraging efficient and effective delivery of educational services; and WHEREAS, the Denton City Council Mobility Committee and the Denton Airport Advisory Board support the establishment of a collegiate aviation program and recommend a resolution to be adopted demonstrating the City of Denton's support of such a program; and WHEREAS, the Denton County Transportation Authority has an established public transportation system that will be further enhanced with regional rail in December 2010 and will provide quality public transportation services for students from across the region to access the University of North Texas, Denton and other regional educational institutions; NOW, THEREFORE, ~, ~ _ ~ ,s:\our documents\resoWtions\OS\avia[ion program resolutiortdoc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The establishment of a four-year program at the University of North Texas, Denton will improve educational opportunities for Texas youth, advance workforce development for many businesses in Denton and the 16-County North Central Texas region and improve economic development opportunities in the region for the aviation industry. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~~~ day of , 2008. E . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION FILE REFERENCE FORM R2008-009 Additional File Exists  Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials JR Amended by Resolution No. R2009-006 03/03/09 JR Section V rescinded by Resolution No. R2009-015 06/16/09 JR Amended by Resolution No. R2009-028 11/03/09 s:\our documents\resolulions\OS\inves[mcnt policy.doc RESOLUTION NO. A RESOLUTION REVIEWING AND ADOPTING REVISIONS TO THE INVESTMENT POLICY FOR FUNDS FOR THE CITY OF DENTON; AND PROVIDING AN EFECTIVE DATE. WHEREAS, the City Council passed Resolution No. 96-061 on October 15, 1996, which adopted an Investment Policy for Funds for the City, in compliance with the Public Funds Investment Act, 74`h Leg., ch. 402, 1995 Tex. Sess. Law Serv. 2958 (Vernon) (TEX. GOVT CODE Ann. Ch. 2256); and WHEREAS, by Resolution No. 97-026, passed by the City Council on June 10, 1997, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 97-077, passed by the City Council on December 16, 1997, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 98-067, passed by the City Council on December 15, 1998, the City's Investment Policy was reviewed and adopted; and WHEREAS, by Resolution No. 99-047, passed by the City Council on September 21, 1999, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2000-065, passed by the City Council on December 19, 2000, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2001-072, passed by the City Council on December 18, 2001, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2002-055, passed by the City Council on December 10, 2002, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2004-008, passed by the City Council on February 3, 2004, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2005-008, passed by the City Council on February 22, 2005, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2005-047, passed by the City Council on November 15, 2005, the City's Investment Policy was amended; WHEREAS, by Resolution No. 2007-028, passed by the City Council on September 25, 2007, the City's Investment Policy was amended; and WHEREAS, the City Council desires to revise the Investment Policy to allow the investment of additional public funds in local government investment pools and in compliance with the Public Funds Investment Act, TEX. GOVT CODE ch. 2256, by the 80`h Legislature; NOW, THEREFORE, s:\our documents\resolutionsl08\investment policy.doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council has reviewed the attached City of Denton Investment Policy, which contains the City's investment policies and investment strategies for each of the funds under its control and hereby adopts the attached Investment Policy, which is made a part of this Resolution for all purposes. SECTION 2. The City Council authorizes the City's designated Investment Officers to investment additional public funds in the local government investment pool in accordance with the Investment Policy and Public Funds Investment Act, TEX. GOVT CODE ch. 2256. SECTION 3. All resolutions or parts of resolutions in force when the provisions of this resolution became effective which aze inconsistent or in conflict with the terms or provisions contained in this resolution are hereby repealed to the extent of any such conflict only. The non- conflicting sections, sentences, paragraphs, and phrases shall remain in full force and effect. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of Resolution No. 96-061, Resolution No. 97-026, Resolution No. 97-077, Resolution No. 98-067, Resolution No. 99-047, Resolution No. 2000-065, Resolution No. 2001-072, Resolution No. 2002-055, Resolution No. 2004-008, Resolution No. 2005-008, Resolution No. 2005-047, and Resolution No. 2007-028 shall remain in full force and effect. SECTION 5. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~iL~l day of , 2008. C~f~"~ PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR VEDA TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY B //!~ ~_ Page 2 of 2 CITY OF DENTON Page 1 of 13 POLICY/ADMINISTRATPJE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: FINANCE POLICIES REFERENCE NUMBER: 403.06 SUBJECT: INVESTMENTS INITIAL EFFECTIVE DATE: 02/17/87 LAST REVISION DATE: TtTLE: INVESTMENT POLICY 9/07 I. PURPOSE This policy shall provide the guidelines by which the City of Denton "City" will maintain the minimum amount of cash in its bank accounts to meet daily needs, and to provide protection for its principal and liquidity while receiving the highest yield possible from investing all temporary excess cash. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy. The policy and strategy shall be reviewed annually by the Investment Committee and City Council who will formally approve any modifications. This investment policy, as approved, is in compliance with the provisions of the Public Funds Investment Act of Tex. Gov't. Code Ann. Chapter 2256, hereinafter referred to as the "Act", as amended and effective September 1, 1997. II. SCOPE A. This Investment Policy applies to the investment activities of the City of Denton, Texas. The specific funds cited hereafter in Section IIB, shall be excluded from this Investment Policy. [All financial assets of all funds, including the General Fund and any other accounts of the City not specifically excluded in these policy guidelines are included. These funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR).] These funds, as well as funds that may be created from time-to-time, shall be administered in accordance with the provisions of these policies. All funds will be pooled for investment purposes. The strategy developed for this pooled fund group will address the varying needs, goals, and objectives of each fund. B. This policy shall not govern funds, which aze managed under separate investment programs in accordance with Section 2256.004 of the Act. Such funds currently include; Employees' Retirement Fund of the City of Denton; the Firemen's and Policemen's Pension Funds of the City of Denton; other funds established by the City for deferred employee compensation; revenue bond reserve funds; and certain private donations. The Ciry shall and will maintain responsibility for these funds to the extent required by: Federal and State Law; the City Charter; and donor stipulations. III. INVESTMENT OBJECTIVE & STRATEGY It is the policy of the "City" that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with State and Federal Regulations, applicable Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance in accordance with Section 2256.005(d) of the Act), apply for each of the City's investment strategies: Paee 2 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 A. Suitability -Understanding the suitability of the investment to the financial requirements of the City. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety -Preservation and safety of principal. All investments will be of high quality securities with no perceived default risk. Market price fluctuations will however occur, by managing the weighted average days to maturity for each fund type as specified. C. Liquidity - To enable the City to meet operating requirements that might be reasonably anticipated, the City's investment portfolio will remain sufficiently liquid. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. D. Marketability -Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer prices of a particular security Type of less than a quarter of a percentage point shall define an efficient secondary market. E. Diversification -Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. F. Yield - Attaining a competitive market yield for comparable security-types and portfolio restrictions are the desired objective. The yield of an equally weighted, rolling six-month treasury bill portfolio shall be the minimum yield objective or "benchmark". A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool, money market mutual fund or average Federal Reserve discount rate. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Even though steps will be taken to obtain this goal, the City's staff shall constantly be cognizant of the standazd of care and the investment objectives pursuant to the provisions of the amended Act, Section 2256.006(a). The Director of Finance shall avoid any transactions that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in Section 2256.006(b) of the Act. IV. INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS Each major fund type has varying cash flow requirements and liquidity needs. Therefore specific strategies shall be implemented considering the fund's unique requirements and the following shall be considered sepazate investment strategies for each of the funds mentioned below. The City's funds shall be analyzed and invested according to the following major fund types: Paee 'i ~f 13 POLICY/ADMINISTRATPi'E PROCEDURE/ADMIHISTRATIVE DIRECTIVE V TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 A. Operating Funds -Investment strategies for operating funds and commingled pools containing operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to structure a portfolio, which will minimize volatility during economic cycles. This may be accomplished by purchasing high quality, short-term securities, which will complement each other in a laddered maturity structure. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity date of each security. B. Debt Service Funds -Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date, which exceeds the debt service payment date. A dollar weighted average maturity of 550 days or less will be maintained and calculated by using the stated final maturity date of each security. C. Debt Service Reserve Funds -Investment strategies for debt service reserve emergency and contingency funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate fund from securities with a low degree of volatility. Securities should be of high quality and, except as may be required by the bond ordinance specific to an individual issue, of short to intermediate-term maturities with stated final maturities not exceeding five (5) years. Volatility shall be further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity and quality range, without paying a premium, if at all possible. Such securities will tend to hold their value during economic cycles. A dollar weighted average maturity of 650 days or less will be maintained. C. Construction and Special Purpose Funds -Investment strategies for construction projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity of each security. E. Market prices for all public fund investments will be obtained and monitored through the use of Interactive Data Inc., an on-line data service or a similar qualified successor agency. V. INVESTMENT COMMITTEE Members -There is hereby created an Investment Committee consisting of the City Manager, Assistant City Manager, Duector of Finance, Mayor, and one member of the City Council. Scope -The Investment Committee shall meet at least quarterly to determine general strategies and to monitor results. Included in its deliberations will be such topics as: economic outlook, portfolio diversification, maturity structure, potential risk to the City's funds, authorized brokers and dealers, and the target rate of return on the investment portfolio. Paee 4 of ] 3 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 Procedures -The Investment Committee shall provide minutes of its meetings. Any two members of the Investment Committee may request a special meeting, and four members shall constitute a quorum. The Investment Committee shall establish its own rules of procedures. VI. RESPONSIBILITY AND STANDARD OF CARE A. Delegation & Training -The management responsibility for the investment program is hereby delegated to the Assistant City Manager, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to the individual(s) responsible for investment transactions. The primary individual who shall be involved in investment activities will be the Director of Finance. The Director of Finance may delegate the day to day activities to a responsible individual who has received the appropriate training required by state statute. The Assistant City Manager and Director of Finance are designated as the Investment Officers, pursuant to section 2256.005 subsection f of the Act. Accordingly, the investment officers shall attend at least one training session relating to their responsibility under the Act within 12 months after assuming duties. These sessions and additional investment training sessions must be completed no less often than once every two fiscal years commencing September 1, 1997 and these financial officers shall receive not less than 10 hours of instruction relating to investment responsibilities. The training must include education in investment controls, security risks, strategy risks, mazket risks, and compliance with the Public Funds Investment Act. The investment training session shall be provided by an independent source approved by the investment committee. For purposes of this policy, an "independent source" from which investment training shall be obtained shall include a professional organization, an institute of higher learning or any other sponsor other than a Business Organization with whom the City of Denton may engage in an investment transaction. Thus, these independent sources will be training sessions sponsored by Government Treasurers Organization of Texas (GTOT), University of North Texas (UNT), Government Finance Officers Association of Texas (GFOAT). No persons may engage in investment transactions except as provided under the terms of this policy and the procedures established by the Assistant City Manager. The Assistant City Manager shall be responsible for all transactions undertaken, and shall establish a system of control to regulate the activities of the Director of Finance. The controls shall include a quarterly process of independent review by an individual or firm designated by the Assistant City Manager, and an annual review by an external auditor. The reviews will provide internal control by assuring compliance with policies and procedures. The Assistant City Manager, Director of Finance, Mayor, City Council, City Manager and other Finance employees shall be personally indemnified in the event of investment loss provided the Investment Policies and Guidelines are followed. B. Conflicts of Interest -All participants in the investment process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. C. Disclosure -Anyone involved in investing City funds shall file with the Assistant City Manager and the Investment Committee a statement disclosing any personal business relationship and any material financial interest in a business organization that handle City of Page 5 of 13 YOLICY/ADNIIHISTRATPVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 Denton investments. An investment officer has a personal business relationship with a business organization if: The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; 2. Funds received by the investment officer from the business organization exceed 10% of the investment officers gross income for the prior year; or The investment officer has acquired from the business organization during the prior year investments with a book value of $2,500 or more for the personal account of the investment officer. Any investment officer who is related within the second degree by affinity or consanguinity as determined under the Tex. Gov't. Code Ann. Ch. 573 to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship with the City Council and the Texas Ethics Commission. D. Prudence -The standazd of prudence to be used by the investment officials shall be the "Prudent Person Rule", as set forth in Tex. Gov't. Code Ann. Sec. 2256.006 and will be applied in the context of managing an overall portfolio: "Investments shall be made with judgement and care under circumstances then prevailing -which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." Investment officials acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibilities for an individual security's credit risk or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. E. Reporting Quarterly -The Director of Finance shall prepare and present to the Investment Committee and City Council a written report on the City's investment transactions for the preceding reporting period. The report shall: 1) describe in detail the investment position of the City as of the end of the reporting period, 2) prepared jointly by all investment officers, 3) signed by each investment officer, 4) contain a summary statement of each pooled fund including a) beginning market value for the reporting period, b) additions and changes to the market value during the period; c) ending market value for the period; and d) fully accrued interest for the reporting period. The summary statement for each fund group must be prepared in compliance with Generally Accepted Accounting Principles (GAAP). 5) State the book value and market value of each sepazately invested asset at the beginning and end of the reporting period by type of asset and fund Type invested; 6) state the maturity date of each separately invested asset that has a maturity date, 7) state the account or fund or pooled group fund for which each individual investment was acquired; and 8) state the compliance of the investment portfolio of the City as it relates to the investment strategy of the City and with relevant provisions of the Tex. Gov't. Code ch. 2256. Paee 6 of 13 POLICY/ADMDISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 Annually -Within one hundred-twenty (120) days of the end of the Fiscal Year, the Director of Finance shall present a comprehensive annual report to the City Council on the investment program and investment activity. The annual report shall provide a separate quarterly comparison of returns and suggestions for improvements that might be made in the investment program. The City Council shall review and approve the investment policy and investment strategies at least annually and be documented by rule, order, ordinance or resolution which shall include any changes made. Compliance Audit -The City's external, independent auditor will conduct an annual review of the quarterly reports in conjunction with the annual financial audit. The results of the audit will be reported to City Council upon receipt. The audit will review compliance with management control on investments and adherence to this policy. F. The guidelines of retaining records for seven years as recommended in the Texas State Library Municipal Records Manual should be followed. The Director of Finance shall oversee the filing and/or storing of investment records. VII. SUITABLE AND AUTHORIZED INVESTMENT SECURITIES A. Active Portfolio Management -The City intends to pursue an active versus a passive investment management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. (Subsection E) B. Authorized Investments (Per HB 2459 and Sections 2256.009 through 2256.017 of the Act) - Assets of funds of the government of the City of Denton may be invested in: 1. Obligations of the United States of America, its agencies and instrumentalities (maturing in less than five (5) years; which have a liquid market with a readily determinable market value; 2. Investment -grade, direct obligations of the State of Texas (maturing in less than two (2) yeazs); 3. Obligations of the States, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm, and having received a rating of not less than "AA" or its equivalent (maturing in less than two (2) years); 4. Fully insured or collateralized Certificates of Deposit issued by state and national banks or savings bank or a state or federal credit union, domiciled in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; secwed by obligations described in 1 through 3 above, and that have a market value of not less than the principal amount of the certificates but excluding those mortgage backed securities as described in the Tex. Gov't. Code Sec. 2256.009(6). (maturing in less than one (1) yeaz); Paoe 7 of I2 POLICY/ADMIHISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 Fully collaterized direct repurchase agreements (whose underlying purchased securities consist of the foregoing) with a defined termination date secured by obligations of the United States or its agencies and instrumentalities pledged with a third party, selected and approved by the City through its Director of Finance, other than an agency for the pledgor and deposited at the time the investment is made with the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. Each issuer of repurchase agreements must sign a copy of the City's Master Repurchase Agreement (termination date must be 30 days or less); 6. Commercial paper that has a stated maturity of 270 days or less from the date of issuance and is rated A-1 or P-1 or an equivalent rating by at least two nationally recognized rating agencies. a. Public Fund Investment Pools with a weighted average maturity of 90 days or less. The pool must be approved (by resolution) by the City Council to provide services to the City. The pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service. A public funds investment pool created to function as a money market mutual fund must mark to market daily and, stabilize at a $1 net asset value. b. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circulaz or other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (] 0) the name and address of the independent auditor of the pool; (il) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar- weighted maturities, and expense ratios. Paee R of 14 POLICY/ADMIl`TISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE V TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to [he investment officer or other authorized representative of the entity: (1) investment transaction confirmations;and (2) a monthly report that contains, at a minimum, the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current average dollar-weighted maturity, based on the stated maturities of the pool; (C) the curzent percentage of the pool's portfolio in investments that have stated maturities of more than one year; (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (H) a listing of daily transaction activity of the entity participating in the pool; (I) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. 8. An SEC-registered, no load money market mutual fund which has a dollar weighted average stated maturity of 90 days or less whose assets consist exclusively of the assets described in section B.1. and whose investment objectives includes the maintenance of a stable net asset value of $1 for each share: furthermore, it provides the City with a prospectus and other information required by the SEC Act of 1934 or the Investment Advisor Act of 1940 and which provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 USC. Section 78a et. Seq.) or the Investment Company Act of 1990 (15 USC Section 80a-1 et. Seq.). 9. Other such securities or obligations which are authorized by the Act as approved by City Council upon recommendation of the Investment Committee. C. Prohibited Investments -The City's authorized investment options are more restrictive than those allowed by State law. Furthermore, this policy specifically prohibits investment in the following investment securities. Obligations, whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. 3. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years. Pa9P 9 of i Z POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIItECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. D. Diversification - It is the policy of [he City to diversify i[s investment portfolios. The diversification will protect interest income from the volatility of interest rates and the avoidance of undue concentration of assets in a specific maturity sector; therefore, portfolio maturities shall be staggered. Securities shall also be selected and revised periodically by the Investment Committee. In establishing specific diversification strategies, the two (2) following general policies and constraints shall apply: Risk of market price volatility shall be controlled through maturity diversification and by controlling unacceptable maturity extensions and a mismatch of liabilities and assets. The maturity extension will be controlled by limiting the weighted average maturity of the entire portfolio to 550 days. All long-term maturities will be intended to cover long-term liabilities. In addition, five (5%) percent of the funds in the portfolio will be liquid at all times. 2. The Investment Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in U.S. Treasury Securities, federal agency instrumentalities, repurchase agreements, and insured/collateralized certificates of deposit and other securities or obligations. The Investment Committee shall conduct a quarterly review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. 3. Risk of principal loss in the portfolio as a whole shall be minimized by diversifying investment types according to the following limitations. 7nveshnent Tvpe % o(Portlolio • U.S. Treasury Notes/Bills 100% • U.S. Agencies & Instrumentalities 100% • State of Texas Obligations & Agencies 15% • Local Government Investment Pools 50% • Local Government Obligations (AA) 10% • Repurchase Agreements 25% • Certificates of Deposit 1 Op% • U.S. Government Money Market Funds 50% • U.S. Treasury Notes & U.S. Agency Callables 35% By Institution: Repurchase Agreements No more than 10% All Other No more than 40% E. Security swaps may be considered as an investment option for the City. A swap out of one instrument into another is acceptable to increase yield, realign for disbursement dates, extend or shorten maturity dates and improve market sector diversification. Swaps may be initiated by brokers/dealers who aze on the City's approved list. A horizon analysis is Paee 10 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE V TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 required for each swap proving benefit to the City before the trade decision is made, which will accompany the investment file for record keeping. F. All investments (governments or bank (r.D.'S) will be solicited on a competitive basis with at least three (3) institutions. The Investment Committee can approve exceptions on a case by case basis or on a general basis in the form of guidelines. These guidelines shall take into consideration the investment type maturity date, amount, and potential disruptiveness to the City's investment strategy. The investment will be made with the broker/dealer offering the best yield/quality to the City. The quotes may be accepted orally, in writing, electronically, or any combination of these methods. G. Arbitrage -Due to the bond issuance sizes of which the City incurs on a regular basis, arbitrage should be addressed. The Tax Reform Act of 1986 provided limitations restricting the City's investing of tax- exempt General Obligation Bond proceeds and debt service income. New arbitrage rebate provisions require that the City compute earnings on investment from each issue of bonds on an annual basis to determine if a rebate is required. To determine the City's arbitrage position, the City is required to perform specific calculations relative to the actual yield earned on the investment of the funds and the yield that could have been earned if the funds had been invested at a rate equal to the yield on the bonds sold by the City. The rebate provision states that periodically (not less than once every five years, and not later than sixty days after maturity of the bonds), the City is required to pay the U.S. Treasury a rebate of excess earnings based on the City being in a positive arbitrage position. The Tax Reform restrictions require extreme precision in the monitoring and recording facets of investments as a whole, and particulazly as they relate to yields and computations so as to insure compliance. Failure to comply can dictate that the bonds become taxable, retroactively from the date of issuance. The City's investment position relative to the new azbitrage restrictions is the continued pursuit of maximizing yield on applicable investments while insuring the safety of capital and liquidity. It is a fiscally sound position to continue maximization of yield and rebate excess earnings, if necessary. Paoe 1 l of l Z POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE u TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 VIII. SELECTION OF BANKS AND DEALERS A. Depository -City Council shall, by ordinance, "select and designate one or more banking institutions as the depository for the monies and funds of the City" in accordance with the requirement of Tex. Loc. Gov't. Code ch. 105. The bank shall be selected primarily on "solvency and stability" and secondly, on rate of interest available. The Director of Finance shall conduct a comprehensive review of prospective depositories' credit chazacteristics and financial history. The bank shall be selected through a formalized bidding process in response to the City's request for proposal (RFP) outlining all services required. The Investment Committee shall have the discretion to determine the time span for rebidding the banking services contract; however, a two year period will be the minimum length of time between bidding with a 5 year maximum period. Banks and savings and loans associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program shall submit financial statements, evidence of Federal insurance and other information as required by the Director of Finance. B. Investment Brokers/Dealers -The Investment Committee shall be responsible for adopting the list of brokers and dealers of government securities. Their selection shall be among only primary government securities dealers that report directly to the New York Federal Reserve Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. The Investment Committee shall base its evaluation of security dealers and financial institutions upon: 1. Financial conditions, strength and capability to fulfill commitments; 2. Overall reputation with other dealers or investors; 3. Regulatory status of the dealer; 4. Background and expertise of the individual representatives. 5. Ability to provide additional advisory services. The Director of Finance shall conduct business with securities dealers approved by the Investment Committee or with banks selected as outlined in VIII. Furthermore, the committee must annually review this list of qualified brokers authorized to engage in investment transactions with the City. The above criterion will be evidenced by the following indicators: delivery method for securities, capitalization of firm, lawsuits pending against firm, credit worthiness of firm, reports and research that aze available, training of staff, primary versus secondary status of firm, and the presentment of a signed qualified broker statement. Each indicator will be weighted equally in the overall evaluation. Investment Officers shall not conduct business with any firm with whom public entities have sustained losses on investments or whose name the Investment Committee has removed from an approved list. Pace 12 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DII2ECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 C. Compliance - A qualified representative from any firm offering to engage in investment transactions with the City is required to sign a written instrument. This certifies that they have received and reviewed a written copy of the City's Investment Policy. The firm must acknowledge that it has implemented reasonable procedures and controls in an effort to preclude investments between the City and the firm that are not authorized by the City's investment policy. Approved brokers and dealers must complete Exhibit A and return it to the Director of Finance. The City's investment officer(s) may not transact business from a person who has not delivered the required written instrument to the City. IX. PRINCIPAL PROTECTION AND SAFEKEEPING A. All banks' and savings and loan associations' deposits and investments of City funds shall be secured by pledged collateral with a market value equal to no less than 102 percent of the principal plus accrued interest less an amount insured by FDIC or FSLIC. Evidence of proper collateralization in the form of original safekeeping receipts held in the institution's trust department or at a third parry institution not affiliated with the bank or bank holding company will be maintained in the office of the Director of Finance all time. The Assistant City Manager, Director of Finance or other authorized City Representative will approve and release all pledged collateral. Collateral will be reviewed monthly to assure the market value of the securities pledged exceeds investments and/or the related bank balances. The Committee shall request additional collateral in the event they deem that their deposits and investments are not sufficiently protected by the pledged collateral. B. Safekeeping procedures shall be established by the Investment Committee, which clearly define steps for gaining access to the Collateral should the City determine that the City's funds are in jeopardy. Collateral safekeeping and substitution agreements will be a part of the procedure. C. Collateral Defined -The City of Denton shall accept only the following securities as collateral: FDIC and FSLIC insurance coverage. 2. United States Treasuries & Agencies. 3. Other securities as approved by the Investment Committee. D. Delivery vs. Payment -All transactions will be executed with authorized security dealers and financial institutions on adelivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the Trustee received the collateral. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. Securities will be held by the City's safekeeping agent, which shall be selected through a competitive process (RFP) or that agent's representative in New York City, or in its account at the Federal Reserve Bank. E. Subject to Audit -All collateral shall be subject to inspection and audit by the Director of Finance, or designee, as well as, the City's independent auditors. Paee 13 of 17 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 X. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance, or designee, shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed include the following: Imperative Controls: - Custodian safekeeping receipts records management - Avoidance of bearer-form securities Documentation of investment bidding events - Written confirmation of telephone transactions - Reconcilements and comparisons of security receipts with the investment subsidiary records - Compliance with investment policies Verification of all interest income and security purchase and sell computations Controls Where Practical: - Control of Collusion - Separation of duties Separation of transaction authority from Accounting and Record-keeping Clear delegation of authority - Accurate and timely reports - Validation of investment maturity decisions with supporting cash flow data - Adequate training and development of Investment Officials Review of financial conditions of all brokers, dealers, and depository institutions - Staying informed about market conditions, changes and trends that require adjustments in investment strategies. ~soLUTrorr ' ~ ,_ s:\our documentslresolutions108\texpool.doc - J RESOLUTION NO. 200 ' D/D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON AMENDING THE CITY'S DESIGNATED AUTHORIZED REPRESENTATIVES TN THE TEXAS LOCAL GOVERNMENT INVESTMENT POOL ("TEXPOOL"); AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("Participant") is a local government of the State of Texas and is empowered to delegate to the public funds investment pools the authority to invest funds and to act as custodian of investments purchased with local investment funds; and WHEREAS, it is in the best interest of the Participant to invest local funds in investments that provide for the preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act; and WHEREAS, the Texas Local Govemment Investment Pools ("TexPool"), a public funds investment pools, were created on behalf of entities whose investment objectives in order of priority are preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The individuals, whose signatures appear in this Resolution, are Authorized Representatives of the Participant and are each hereby authorized to transmit funds for investment in TexPool and are each further authorized to withdraw funds from time to time, to issue letters of instruction, and to take all other actions deemed necessary or appropriate for the investment of local funds. SECTION 2. An Authorized Representative of the Participant may be deleted by a written instrument signed by all remaining Authorized Representatives provided that the deleted Authorized Representatives (1) is assigned job duties that no longer require access to the Participant's TexPool account or (2) is no longer employed by the Participant. 'SECTION 3. The Participant may, by Amending Resolution signed by the Participant, add an Authorized Representative provided the additional Authorized Representative is an officer, employee, or agent of the Participant. List the Authorized Representatives of the Participant. Any new individuals will be issued personal identification numbers to transact business with TexPool Participant Services. 1. Name: Jon Fortune Phone/Fax/Em Signature: Title: Assistant Citv Manaeer s:bur documents\resolu[ions\08\tezpool.doc 2. Name: Bryan Lanelev Phone/Fax/Em Signature: 3. Name: Caroline Finley Title: Treas & Debt Mana er Phone/Fax/Email: 940.349.7743 / 940.349 7206 / cazoline finleyna citvofdenton com ___ ,_ Signature: L,,,~ 4. Name: Antonio Puente, Jr. Phone/FaxBm Signature: 5. Name: xanaee nungeie Phone/Fax/Em Signature: List the name of the Authorized Representative listed above that will have primary responsibility for performing transactions and receiving confirmations and monthly statements under the Participation Agreement. Name: Randee Klineele In addition and at the option of the Participant, one additional Authorized Representative can be designated to perform only inquiry of selected information. This limited representative cannot perform transactions. If the Participant desires to designate a representative with inquiry rights only, complete the following information Name: Title: SECTION 4. This Resolution and its authorization shall continue in full force and effect until amended or revoked by the Participant, and until TexPool Participant Services receives a copy of any such amendment or revocation. SECTION 5. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ 2 day of ~U2 , 2008. l./ - ~~ ~~ PE R. McNEILL, MAYOR Page 2 Title: Director of FinanrP Title: Revenue & Treasury Analyst 'Title: Treasury Services Specialist a( s:\nur documentsUcsolu[ions\OS\Iexpool.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED ALTO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BYi/~~~y ~ T, /,. Page 3 RESOLUTION s:\our documents4esolutions\OS\a[m show cause resolution.doc RESOLUTION NO. ,o0p' OIL A RESOLUTION OF THE CITY OF DENTON, TEXAS, DETERMINING THE CURRENT RATES OF THE ATMOS ENERGY CORPORATION, MID-TEX DIVISION TO BE UNJUST AND UNREASONABLE; PROVIDING FOR A REASONABLE NOTICE AND HEARING; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE WHEREAS, Atmos Energy Corporation -Mid-Tex Division ("Atmos") filed a Statement of Intent with the City of Denton, Texas ("City") on September 20, 2007 to increase its system- wide, annual revenue requirement, by approximately $51.9 million; and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos' rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in a coalition of cities known as Atmos Texas Municipalities ("ATM") and authorized the hiring of lawyers and rate experts; and WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad Commission of Texas, which has docketed the appeal along with other appeals as Gas Utilities Docket No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atmos; and WHEREAS, Atmos and ATM have entered into a settlement agreement resolving all disputes regazding the appropriate rates, terms and conditions for Atmos; and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the settlement agreement, it must reestablish its original jurisdiction over the rates of Atmos; and WHEREAS, the Gas Utilities Regulatory Act authorizes municipalities exercising original jurisdiction over gas utilities to issue a Show Cause as to their rates, terms and conditions, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The statements set out in the preamble to this Resolution are hereby in all things approved and adopted. s:\our documen[s\resolutions\OSta[m show cause resolu[ion.doc SECTION 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos aze unreasonable and determines that Atmos should Show Cause why such rates, terms and conditions should not be changed. SECTION 3. In light of the fact that a settlement agreement has been reached between Atmos and ATM resolving all issues, it is reasonable to proceed to a hearing on the settlement agreement without additional notice to Atmos and it is reasonable to hold such heazing at the same city council meeting as the meeting at which this Resolution is adopted. SECTION 4. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Govermnent Code, Chapter 551. SECTION 5. This Resolution shall become effective from and afterits/passage. PASSED AND APPROVED this the ~ ~2 day of ~ , 2008. PERK R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: t APPR ED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ~ ~i .. - Page 2 RESOLUTION s:\our documen[s\resolutions\08~atm settlement resolu[ion.doc RESOLUTION NO. 2®OO -d~Z A RESOLUTION OF THE OF CITY OF DENTON, TEXAS, APPROVING A SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORPORATION, MID-TEX DIVISION AND ATMOS TEXAS MUNICIPALITIES; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING RATE ADJUSTMENTS CONSISTENT WITH THE SETTLEMENT AGREEEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation -Mid-Tex Division ("Atmos") rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has participated in prior cases regarding Atmos as a part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), including Railroad Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to Section 104.301 of GURA, and GUD Docket No. 9670; and WHEREAS, ("Atmos") filed a Statement of Intent with the City on or about September 20, 2007 to increase its system-wide, annual revenue requirement, by approximately $51.9 million; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in ATM and authorized the hiring of lawyers and rate experts; and WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad Commission of Texas, which has docketed the appeal along with other appeals as GUD No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atmos; and WHEREAS, Atmos and ATM have entered into a Settlement Agreement resolving all disputes regazding the appropriate rates, terms and conditions for Atmos; and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the Settlement Agreement, it has reestablished its original jurisdiction over the rates of Atmos by issuing a Show Cause against Atmos; and s:\our documen[sUesolutions\08\atm setllemem resolution.doc WHEREAS, the City has given reasonable notice to Atmos regarding the consideration of the Settlement Agreement and WHEREAS, the Settlement Agreement will resolve several previously-litigated cases and will resolve all issues currently pending before the Railroad Commission in GUD No. 9762, as well as issues relating to franchise agreements with Atmos; and WHEREAS, the Settlement Agreement will result in Atmos receiving a $10 million system-wide rate increase, which is significantly smaller than the $51.9 million sought by Atmos, and WHEREAS, the Settlement Agreement creates an experimental and expedited rate review process ,called the Rate Review Mechanism ("RRM") in lieu of the Section 104.301 filings, which will allow for a consideration of both increases and decreases in expenses and investments and will allow for increased participation by City regulators in future rate cases; and WHEREAS, the RRM will also allow Atmos a greater opportunity to earn its authorized rate of return, but no more, by use of a "true-up" calculation contained within the RRM tariff; and WHEREAS, the Settlement Agreement calls for a reduction in customer changes for residential and commercial customers and WHEREAS, the Settlement Agreement excludes specified expenses from recovery by Atmos; and WHEREAS, the Settlement Agreement contains a "most-favored-nations" clause that provides City with the benefit of any other RRM settlement or any other settlement of the issues related to the September 20, 2007 Statement of Intent or GUD No. 9672, under certain conditions; and WHEREAS, the Settlement Agreement authorizes other changes in rates and tariffs that should enable Atmos to provide efficient service at reasonable rates and provides for the reimbursement of ATM expenses; and WHEREAS, the Settlement Agreement provides for quarterly meetings between Atmos and City representatives in order to improve communication and cooperation; and WHEREAS, the Settlement Agreement provides a mechanism for the City to amend or renew its franchise agreement with Atmos at 5% of Gross Revenues; and WHEREAS, the Settlement Agreement resolves numerous cases currently pending on appeal and provides for payment to ATM associated with such cases; and Page 2 s:\our documents\resolutions\OS\atm settlement resolution.doc WHEREAS, the City desires to avoid the cost and uncertainty of litigating the cases at the Railroad Commission and the courts; and WHEREAS, the ATM lawyers as well as numerous representatives from the ATM Cities have negotiated with Atmos on several occasions; and WHEREAS, the ATM lawyers have recommended the approval of the Settlement Agreement: and WHEREAS, the City has examined the Settlement Agreement and its attached taziffs, rates, terms and conditions; and WHEREAS, the Settlement Agreement as a whole is consistent with the public interest; and WHEREAS, the tariffs, rates, terms and conditions attached to the Settlement Agreement should be found to be just, reasonable and in the public interest; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The statements set out in the preamble to this Resolution are hereby in all things approved and adopted. SECTION 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos aze unreasonable and determines that such rates, terms and conditions should be changed. SECTION 3. The City Council finds that the Settlement Agreement, which is attached hereto and incorporated herein as Attachment A, is in the public interest and is hereby endorsed in all respects. SECTION 4. The City Council finds that the new taziffs, which are attached hereto and incorporated herein as Attachment B, aze just and reasonable and aze hereby adopted. SECTION 5. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. SECTION 6. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 7. A copy of this Resolution shall be sent to Atmos Mid-Tex, caze of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, Herrera and Boyle, PLLC, 860 Congress Avenue, Suite 1120, Austin, TX 78701. Page 3 s:\our documents\resolu[ions\OSta[m settlement resolu[ion.doc SECTION 8. This Resolution shall become effective from and after its passage with rates authorized by the attached Taziffs to be effective in accordance with the terms of the Settlement Agreement. PASSED AND APPROVED this the ~~Z day of ~~t/L~. , 2008. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR VEDA O LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY „- Page 4 ATTACHMENT A WHEREAS, this settlement agreement is entered into and by Atmos Energy Corp's Mid-Tex Division and Atmos Texas Municipalities ("ATM") whose members include the Cities of'Austin, Balch Springs, Bandera, Baztlett, Belton, Blooming Grove, Bryan, Cameron, Cedaz Pazk, Clifton, Commerce, Copperas Cove, Corsicana, Denton,' Electra, FYedericksbmg, Galesville, Georgetown, GoldWwaite, Granbury, Greenville, Groesbeck, Hamilton, Henrietta, Hickory Creek, Hico, Hillsboro, Hutto, Kerens, Lampasas, Leander; Comets, Longview, Mart, Mexia, Olney, Pflugervillle, Ranger; Rice, Riesel, Rogers, Round Rock, San Angelo, Sanger, Somerville, Star Harbor, Trinidad, Trophy Club, and Whitney; and WHEREAS, ATM is an active intervenor in Statement of Intent Filed by Atmos Energy Corporation to Increase Utility Rates Within the Unincorporated Areas Served by the Atmos Energy Corp, Mid-Tex Division, GUD Docket No. 9762 at the Railroad Commission of Texas ("Commission'); and WI-AREAS, ATM has hued experts and lawyers to analyze the rates and iiders proposed by Atmos Energy Corp.'s, Mid-Tex Division ("Atmos" or "Company's in GUD Docket No. 9762; and WHEREAS, the Settlement Agreement resolves all issues between Atmos and ATM ("Lhe Signatories") regarding GUD Docket No. 9762, which is currently pending before the Commission, in a manner that the Signatories believe is consistent with the public interest, and the Signatories represent diverse interests; and WHEREAS, the Signatories believe that the resolution of the issues raised in GUD Docket No.. 9762 can best be accomplished by each ATM City approving this Settlement Agreement and the rates, terms and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A; NOW, THEREFORE, in consideration of Ure mutual agreements and covenants established herein, the Signatories, through their undersigned representatives, agree to the following Settlement Terms as a means of fully resolving all issues in the pending appeal between the ATM Cities and Atmos: Settlement Terms Upon the execution of'this Settlement Agreement, each ATM city will issue a show cause against Atmos, following appropriate city procedures.. After the issuance of the show cause, Atmos and the counsel for the ATM cities will recommend that an ordinance or resolution be adopted to approve this Settlement Ageement and implement the rates, terms and conditions reflected in the tariff's attached to this Settlement Agreement as Exhibit A. Said tariffs should allow Atmos an additional $10 million in annual revenue by implementation of'rates shown in the proof of revenues attached as Exhibit B. The uniform implementation of gas rates, terms and conditions established by this Settlement Agreement shall be effective for bills rendered on or after March 1, 2008, or as soon thereafter as the ATM city adopts an 1 SEITLEMENI AGREEMENT GAS tJi'II.TIIES DOCKET N0.9762 (AND CONSOLIDATED CASES) FEaRUARY11,2008 ordinance or resolution to implement for the ATM city the sates, terms, and conditions reflected in the taziffs attached to this Settlement Agreement.. 2. The net plant amount of $1,243,607,206 is reasonable for the plant that is used and useful in providing gas utility service. 3. In an effort to sneamline the regulatory review process, Atmos and ATM have agreed to undertake a new mechanism for reviewing the Company's cost of'service on an annual basis.. The new mechanism is lmown as the Rate Review Mechanism ("Rider RRM'~. Rider RRM provides for an annual rate adjustment to reflect changes in billing determinants, operating and maintenance expense, depreciation expense, other taxes expense, and revenues as well as changes in capital investment and agsociated changes in Boss revenue related taxes. 4.. Atmos and ATM agree that the Rider RRM shall be implemented annually over a tluee-yeaz hial period.. On or after December 31, 2010, any ATM City that opposes the continued use of the Rider RRM to set rates for areas within its original ,jurisdiction shall provide written notification to the Company of'this fact..' Such notice shall be provided no later-than .January .31, 2011. Upon receipt of'such written notification, Atmos shall cease making an annual Rider RRM filing with the notifying ATM City and instead, shall file a general rate case with the notifying ATM City within eighteen months fiom the date the notification is received by the Company.. The last effective rates under the Rider RRM shall remain in effect for the notifying ATM City until such time as new rates aze established for that city in a general rate case.. 1n the absence of such notification, Rider RRM shall continue subject to any changes that may be agreed to in writing between the ATM Cities and Atmos. Atmos agees that effective with the implementation of the first RRM rate adjustment, Atmos shall file with the ATM Cities a revised Rate R-Residential Sales Taziff to reduce the customer' charge per bill firm $10.69 per- month to $7.00 per monffi and to increase the volumetric portion of'the rate (shown as $1.271 in Exhibit A) to tlrf; appropriate level to reflect the reduction in customercharge firm. $10.69 to $7.00, as well as to reflect any change resulting from the RRM implementation. Atmos further agrees that effective with the implementation of the fast RRM adjustment, Atmos shall file with the ATM Cities a revised Rate C- Commercial Sales Tariff to reduce the customer chazge per bill finm $20.•28 to $1.3..50 per month and to increase the volumetric portion of the rate (shown as $.,7104 in Exhibit A) to the appropriate level to reflect the reduction in customer charge from $20,28 to $13..50, as well as to reflect any change resulting fiom the RRM implementation. The fast RRM rate adjustment shall occur October 1, 2008. Atmos and the ATM Cities agree that following the initial RRM adjustment any subsequent implementation of RRM adjustments shall be supported as described in the Killer RRM, and shall limit changes to residential and commercial customer charge to no mare than 20%. Further, the patties agree that any approved adjustment in excess of the 20% limitation on the residential and commercial customer chazge shall be recovered through the volumettic portion of the rate. sErrL.En~LENT acxEEMENr GAS UTII,I'TTES DOCKET N0.9762 (AND CONSOLIDATED CASES) F~tixUARV 11, 2008 6.. The following types of expenses shall be removed fiom all expense and rate base amounts included within Rider RRM filings for each Evaluation Period-and corresponding Rate Effective Period: • Amounts incurred for travel, meals or entertainment of employee spouses.. • Amounts far au Navel that exceed published commercial coach air faz es. ^ Amounts inewred for hotel moms exceeding $250 per' night inclusive of taxes and fees assessed on such rooms.. • Amounts for alcbhohc beverages, ^ Amounts paid for admission to entertainment, sports, art or cultural events, and all event sponsorship costs. • Amounts for social club dues or fees. With respect to the RRM, Atmos fiuther agrees to pay all reasonable and necessary expenses of each entity having original jwisdiction that are incwted to review the Company's annual RRM filings. Atmos fwther agrees .that in calculating the proposed rate for any Rate Effective Period, the Company shall not include: (1) any external legal, expert; or consultant coats to prepaze and/or provide supportive information related to its filing; or (2) reimbwsements to original jwisdiction entities. 8. Notwithstanding pazagaph 7 of this Settlement Agreement, Atmos and ATM agree that in the event of an appeal of an original jwisdiction entity's decision regarding a proposed RRM adjustment, recovery of rate case expenses shall be detemrined according to Chapters 103 and 104, TF.x. UTa. CODE ANN, Fhther, in the event of such appeal(s), Atmos shall recover any reimbursement made to the original jwisdicfion entity tluough a swchazge to all customer rates that are subject to the Commission's,jwisdicdon in that pioceeding or proceedings that might be joined therewith, regazdless of whether such reimbwsements are made dwing the initial review period or appeal period.. 9. It is the intention of'the Signatories that the ATM Cities receive the benefit of any agreed upon annual RRM adjustment that Atmos enters into with any other RRM- implementing city within the Mid-Tex division dwing the same yeaz,. Therefore, Atmos agrees that if; as determined by the ATM Cities, the annual RRM adjustment agreed to between Atmos and an RRM-unplementing city is more beneficial to the ATM Cities, Abnos will make the more beneficial annual RRM adjustment available to the ATM Cities for adoption. 10, The ATM Cities agree that they will not challenge the legal basis of the rates, terms, and conditions reflected in Exhibit A, or any annual RRM adjustment that is implemented pwsuant to Rider RRM,. 11, Atrnos and the ATM Cities further agree that the express terms of'the Rider RRM aze supplementai to the filing, notice, regulatory review, or appellate procedwal process of the ratemaking provisions of Chapter 104 of'the Texas Utilities Code. If' the statute requires a mandatory action on behalf of the municipal regulatory authority or Atmos, the pazties will follow the provisions of such statute. If' the statute allows discretion on behalf' of the municipal regulatory authority, the ATM SETILBMENI AGREEMENT GAS iJTILITIES DOCKET N0.9762 (AND CONSOIIDAiED CASES) F$BRiJARY 11, 2UU8 Cities agree that they shall exercise such discretion in such a way as to implement the provisions of'the RRM tazifl'. If'Atrnos appeals an action or inaction of'an ATM City regarding an RRM filing to the Railroad Commission, the ATM Cities agree that they will not oppose the implementation of interim rates or advocate the imposition of'a bond by Atmos consistent with the RRM tariff:. Atmos agrees that it will make no filings on behalf' of its Mid-Tex division under the provisions of TEX.. UI¢. CDDB Axrr.. § 104.301 while the Rider RRM is in place, and any such filings pending at the time the RR1VI is approved will be hued-up for revenue and rate base components prior to implementation of the annual RRM.. In the event that a regulatory authority fails to act or enters an adverse decision regadding the proposed annual RRM adjustment, the Railroad Commission of Texas shall, pursuant to the provisions of the Texas Utilities Code, have exclusive appellate jurisdiction to review the action or inaction of'the regulatory authority exercising exclusive original jurisdiction over the RRM request. In addition, the Signatories agree that this Settlement Agreement shall not be construed as a waiver of the ATM Cities' right to initiate a show cause proceeding or the Company's light to file a Statement of Intent under the provisions of the Texas Utilities Code. 12.. Atmos and ATM commit that during the Initial Implementation Period, as defined in the RRM tariff; Atmos and the ATM Cities will not devote resources or efforts to advocate statutory changes involving rate stabilization mechanisms or the Gas Reliability Infrastructure Program that is currently codified under TEX. UrtL. Conn § 104 301. 13 Atmos and the ATM Cities agree that the gas cost portion of uncollectible expense shall be recovered through the Company's Ridet GCR rather than through base rates. The change in accounting for the gas cost portion of'uncollectible expense (including both the accrual of expense and write-off' of accounts) shall become effective with the implementation of'the first RRM rate adjustment..The first RRM. rate adjustment is expected to occur October 1, 2008. 'In calculating the rate for the first Rate Effective Period, the Company shall htilize the same methodology as used in the Company's September 20, 2007 Statement of Intent with the only modification being to exclude the effects of the gas cost portion of uncollectible expense fiom the base rate calculation. 14 Atmos and the ATM Cities fiuther ogee that expense associated with lost and unaccountable gas shall, based on an annual period, be recoverable tluough the Company's Rider GCR up to a maximum of five (5) percent of the quantity of metered gas, as provided under Commission Rule 7.5525, Lost and Unaccounted for Gas. Such change shall be effective with the complete 12 month reporting period ending .June 30, 2008.. 15. .Included as part of Exhibit A to this Settlement Agreement is a new gas conservation program tariff (Rider CEE) that will be effective October 1, 2008. Atmos and the ATM Cities agree that Atmos will fund $1 million of the allowable expenses incurred annually, with a customer late component providing the remainder' $1 million of funding. All customer-supplied funds will, prior to the commencement of the program, be used toward program implementation efforts sErf LEIvtENr aGREEtv1ENr GAS UTILITIES DOCKET N0.9762 (AND CONSOLIDAIED CASES) FEBRUARY 11, 2008 and, upon implementation, be applied drrectly to the gas conservation materials and supplies. 16, Atmos and the ATM Cities agree that the Company's requested revision of its weather normalization adjustment ("WNA'~ mechanism is appropriate and should be approved as set forth in Exhibit A to this Settlement Agreement. Specifically, the revision excludes non-weather sensitive commercial customers and modifies the WNA mechanism to calculate the WNA adjustment based on weather stations at a regional level rather than under the current practice of associating all customers with a single weather location for purposes of determining the WNA adjustment. 17. Atmos and the ATM Cities agree that the three-year gas cost review process that is currently in effect for the Mid-Tex division should be eliminated.. Atmos and the ATM Cities further agee to collaborate to establish an alternate process wherein the prudence of gas costs recovered through the Rider GCR can be addressed. Until an agreed upon replacement mechanism has been established, the current gas cost review process shall remain in effect, unless changed by order of'the Cornmission. 18_ It is the intention of the Signatories that the ATM Cities receive the benefit of any settlement agreement that Atmos enters into with other entities azising out of the September 2Q 2007 Statement of Intent or GUD No. 9672 (consolidated cases) or any associated appeals of GUD No. 9672.. Therefore, Atmos agees that ifthe rates, revenues, terms and conditions, or benefits accruing to the settling entity would be more beneficial to the ATM Cities than the terms of'this Settlement Agreement, as determined by the ATM Cities, such mote favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the ATM Cities, Similarly, if'the Final Order in GUD No.. 9672 or orders resulting from any associated appeals are determined by the ATM Cities to result in rates, revenues, terms and conditions, or benefits that are more beneficial than the terms or this Settlement Agreement, such more favorable terms, revenues, terms and conditions shall additionally accrrie to the ATM Cities.. The ATM Cities' exercise of'this right is conditioned upon the ATM Cities' acceptance of all rates, revenues, terms and conditions of'the Final Order in GUD No. 9672 in tote.. If there is a subsequent settlement ageement azising out of the September 20, 2007 Statement of Intent or GUD No. 9672 (consolidated cases) or any associated appeals of GUD No.. 9672 that is deemed by the ATM Cities to be more beneficial than this Settlement Agreement, the ATM Cities shall be required to accept all of'the rates, revenues, terms and conditions of'such set$ementagieement in tote.. 19, Atmos and the ATM Cities agree that all reasonable rate case expenses directly incurred by Atmos in wnnection with the September 20, 2007 Statement of'Intent filed on behalf' of its Mid-Tex Division through kebruazy 29, 2008, as well as all expenses reimbursed to the ATM Cities for such cases shall be recoverable through a surehazge to all customer rates within the ATM Cities. The amount to be recovered through the surohazge to customers within the ATM Cities shall be determined on a pro rata basis, consistent with the ATM Cities' percentage of'total Mid-Tex residential load.. The surcharge shall be recovered over athirty-six month period beginning in April of 2008, or as soon thereafter as approved by the last SETILEMENI AGREEMENI ~ ' GAS iITII..ITIES DOCKET NO.. 9762 (AND CONSOLIDAIED CASES) F~ERUARY11,2008 ATM City.. Atmos fmther agrees that it will continue to reimburse ATM Cities for the rate case expenses intoned in connection with the September 20, 2007 Statement of Intent on a monthly basis in accordance with the agreement entered between the Signatories on October I5, 2007. 20 Atmos and the ATM Cities agree that Atmos may make all future filings, including, but not limited to, the annual RRM adjustment and any Statement of Intent filing with the ATM Cities on an eectonic basis, rather than by paper copy.. Electronic Filings shall fulfill the requuements of TEx.. IJIII.. CODE §104.103. The appropriate ATM Cities representative shall provide a list of the ATM Cities to Atmos by Mareh 1, 2008, and agrees to notify Atmos of any change in the ATM Cities Coalition within 30 days of the effective date of any such change in order for Atmos to maintain adequate service records. Atmbs further agrees to make paper copies of filings available to any ATM City that requests a copy. 21. In the spirit of improving communication and cooperation, Atmos agrees to initiate quazterly meetings with the ATM Cities to provide information, answer questions, and receive input from the ATM Cities regazding capital projects in the Mid-Tex service territory. As pazt of the quarterly meetings, Atinos will update the ATM Cities of its activities is the cities, as well as any service related issues associated with the provision of gas utility services to ATM city customers., Atmos and the ATM Cities will work cooperatively regarding the level of project detail to be presented at the quarterly meetings. Until changed by the patties, the level of project detail supplied by Atmos at such meetings shall be similaz to the project spreadsheets on GRIP projects attached to the prefiled duect testimony of'James S. Powell in GUD No 9762. Atmos shall not be required to obtain the pre-approval of the ATM Cities to place projects in service. 22. Atmos and the ATM Cities agree that each ATM city should approve this Settlement Agreement and adopt an ordinance or resolution to implement for the ATM Cities the rates, terms, and conditions reflected in the tariffs attaches to this Settlement Agreement as Exhibit A. 23 The Signatories agree that the terms af'the Settlement Agreement aze interdependent and indivisible, and that if'any ATM city enters an order that is inwnsistent with this Settlement Agreement, then any Signatory may withdraw without being deemed to have waived any procedural right or to have taken any substantive position on any fact or issue by virtue of that Signatory's enhy into the Settlement Agreement or its subsequent withdrawal. If any ATM city rejects this Settlement Agreement, then this Settlement Agreement shall be void ab ir:itio and counsel for the ATM Cities shall thereafter only take such actions as are in accordance with the Texas Disciplinary Rules of Professional Conduct.. 24.. Atmos agrees that it will accept and approve a request pursuant to this Agreement by any municipality that is currently receiving franchise payment from the Company to execute or amend that municipality's applicable 5anchise agreement to increase the franchise fee payment payable by the Company under the terms of the municipality's franchise agreement to not more than 5% of'Gross Revenues (as that 6 SETILEMENI AGREEMENT GAS UTIIITIES DOCKET N0.4162 (AND CONSOLIDAIED CASES) FEBRUARY 11,2008 team is defined in the applicable franchise_ The terms of this pazagraph shall supersede any and all language currently contained in the applicable franchise, as amended or extended, ganting the right to increase the periodic franchise fee payment following the passage and approval of a new, amended, or renewed franchise that provides for a higher franchise fee payment with another municipality. Any municipality that elects to exercise the option granted herein shall notify the Company of such election by written notice given not less than sixty (60) days prior to the effective date of the increase.. Upon receipt of the written notice from the electing municipality, the Company and the municipality shall enter into a new, amended or renewed franchise agreement (hereinafter referred to as an "Amendment"). The Company shall calculate the 5% on the gross revenue (as that fern is defined in the applicable franchise) from the prior yeaz• or the prior quarter, depending on the franchise teems; based upon the gross revenue for the prior yeaz or quarter', respectively. The payment that is made during the current year or quarter is for the privilege of gas operations durirrg that time period.. This interpretation applies to.all payments made or to be made under the franchise ag<ement. Each city shall adopt the Amendment in a manner that is consistent with their chazter or applicable laws in the case of a general law city.. The effective date. of the Amendment shall be May 1, 2008 or the date the Amendment is adopted if' after May 1, 2008. The Company shall be entitled to collect any franchise fees, whether or not increased under the terms hereof; from customers within each municipality pursuant to the terms of the Company's hider FF . 25.. In exchange for ATM's dismissal oYnon-suit of'tlre sorts specified below, Atmos agrees to pay the ATM Cities $560,000 for expenses associated with all 2003, 2004, 2005, and 2006 GRIP filings and related court appeals within 30 days of'the date of the last ATM city ordinance or resolution approving this Settlement Ag<eement is entered. Such payment shall be recovered through the surehazge to customers within the ATM Cities at a rate of $.0053 per Mcf. Atmos and the ATM Cities further agree that the surcharge shall be recovered over a twelve month period begirmirrg with the implementation of the first annual Rate Review Mechanism ("RRM'~ adjustment, which is expected to occur. on October i, 2008. 26. Within .30 days following the date the last ATM city ordinance or resolution approving this Settlement Agreement is entered, Atmos and the ATM Cities agree to file a Notice of Non-Suit or Motion to Dismiss, whichever is applicable, in the following proceedings: Cause No. D-I-GN-06-000337 (Consolidated); Atmos Cities Steeling Committee v. The Railroad Commission of Texas, Tn the 345th District Court, Travis County, Texas. This case includes the following cases: a. Cause No.. D-1-GN-502179 - Atmos Texar Municipalities v The Railroad Commission of Texas, In the 250x` Disttict Court, Travis County, Texas. ** b. Cause No.. D-1-GV-06-000057 -Cities of'Caldwetl, Celina, Copperas Cove, Corsicana, Crowley, Denton, Fredericksburg Frost, Galesville, Goldthwaite, Greenville, Groesbacl~ Hamilton, Hickory Creek, Hillsboro, SETTLEMENT AGREEMENI GAS UTIL•TIIES DOCKET N0.9762 (AND CONSOLIDAIED CASES) FEBRUARY 11, 200$ Lexington, Llano, Longview, Mart, Whitney ("Cities') v. The Railroad Dishict Court, Ttavis County, Texas. Mexia, Somerville, 77torndale, and Commission of Texas, 111 the 35.3`a c.. Cause No D-1-GV-06-000061 -City of Ranger ("City') v. The Raiboad Commission of'Texar, In the 200x' District Court, Travis County, Texas, d. Cause No.. D-1-GV-06-000076 -City of'McGregor ("City) v. -The Raiboad Commission of'Texas; In the 126a' Dishict Court, Travis County, Texas.. e. Cause No. D-1-GV-06-000077 -City oJ' West ("City) v. The Railroad Commission of'Texas, Tn the 200x' District Court, Travis County, Texas. f'. Cause No. D-1-GV-06-000078 -Cities of Balch Springs, Belton, Cron, Commerce, Dublin, Electra, Lampasas, Lometa, PJlugerville, San Saba and Seymour ("Cities) v. The Railroad Commission of Texas, In the 201" Dishict Coutt, Travis County, Texas.. g. Cause No.. D-1-GV-06-000079 -Cities of Burnet, Coleman and Round Rock ("Cities') v. The Raiboad Commission of Texas, In the 250x' District Court, Travis County, Texas.. h. Cause No. D-1-GV-06-000106 -City of Kemp ("City') v. The Railroad Commission of Texas, In the 98u District Court, Travis County, Texas.. i. Cause No. D-1-GV-06-001095 -The Cities of Balch Springs, Belton, Bwnet, Clifton, Coleman, Copperas Cove, Corsicana, Denton, Dublin, Fredericksbwg, Frost, GatesvilJe, Goldthwaite, Cranbury, Grandview, Greenville, Groesbeck, Hillrboro, Lampasas, Leander, Llano, Lometa, Longview, Mexia, Pflugerville, Ranger, Riesel, Round Roc1~ San Saba, Somerville, TYinidad and Whitney ('Atmos Texas Municipalities" w' 'ATM) v. The Raiboad Commission of Texas, In the 126th Dishict Coutt, Travis County.. j. Cause No. D-1-GV-06-000578 - Atmos Texas Municipalities v. The Texas Railroad Commission of Texas, In the 201st Dishict Court, Travis County, Texas..** k. Cause Number: 03-06-00580-CV; Atmos Energy Corpaiation, as successor by merger to TXU Gas Company, Allied Coalition of Citea, and City of Dallas v. Raiboad Commission of Texas; In the Third Dishict Court of Appeals at Austin, Texas, **Non-suit or Dismissal will occur only with respect to the defendant, Atmos Energy, Corp., Mid-Tex division SETTI.EMENI AGItEEMENI GAS UTILITIES DOCKET NO. 9162 (AND CONSOLIDAIED CASES) FEBRUARY 11, 200$ 27, The Signatories agree that all negotiations, discussions and conferences related to the Settlement Agreement aze privileged, inadmissible, and not relevant to prove any issues associated with GUD Docket No. 9762. 28. The Signatories agree that neither this Settlement Agreement nor any oral or written statements made dwing the cowse of settlement negotiations may be used for any pwpose other than as necessazy to support the entry by the ATM Cities of an ordinance or resolution implementing this Settlement Agreement.. 29.. The Signatories agree that this Settlement Agreement is binding on each Signatory only for the pwpose of settling the issues set fo[th herein and for no other pwposes, and, except to the extent the Settlement Ag<eement governs a Signatory's rights and obligations for futtue periods, this Settlement Ageement shall not be binding or precedential upon a Signatory outside this proceeding. 30. The Signatories agree that this Settlement Agreement may be executed in multiple counterparts and maybe filed with facsimile signatures. SETTLEMENT AGREEMEN I GAS UTIL17tES POCKE7N0..9162 (AND CONSOLiDA7ED CASES) FEBRUARY 11, 20pp--S Agreed to this (L~Oday of Februazy, 2008 A7MOS ENERGY CORP., MID•SEX DIVISION B ~ ~ ' ~~ Y~ _ 7o A Patis ident, Ind-TeY Division 10 SEI'ILEMENT AGREEMENT GAS UTTLIIIES DOCKET NO 9162 (AND CONSOLIDAIED CASES) FEBRUARY 11, 2,Op$ Agreed to this `~ day of'Febiuary 2008 ATTORNEY FOR AIMOS IEXAS MUNICIPALITIES, WHOSE MEMBERS INCLUDE THE CITIES OF AUSTIN, BALCH SPRINGS, BANDERA, BARTLETT, BECTON, BLOOAdING GROVE, BRYAN, CAMERON, CEDAR PARK, CLIFTON, COMMERCE, COPPERAS COVE, CORSICANA, DENTON, ELECTRA, FREDERICKSBURG, GATESVILLE, GEORGETOWN, GOLDTHWAITE, GRANBURY, GREENVILLE, GROESBECK, HAMILTON, HENRIETTA, HICKORY CREEK, HICO, HILLSBORO, HUTTO, KERENS, LAMPASAS, LEANDER, LOMETA, LONGVIEW, MART, MEXIA,.OLNEY, PFLUGERVII.LLE, RANGER, RICE, RIESEL, . ROGERS, ROUND ROCK, SAN ANGELO, BANGER, SOMERVILLE, STAR HARBOR, TRINIDAD, TROPHY UB, AND WHTI'NEY By: '~ . B ale * Subject to approval by ATM City Cb~lncils 11 ATTACHMENT B EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: TABLE OF CONTENTS APPLICABLE TO: Entire System REVISION DATE: EFFECTIVE DATE: PAGE: 7 OF 1 UTILITY OPERATIONS II. CITIES AND COUNTIES SERVED III.. DEFINITIONS N. GAS SERVICE RATES 8 RIDERS Rate R - Resitlential Sales Rate C -Commercial Sales Rate I - IndusVial Sales Rate T - Transportatlon Rider CT - CompefiUve Transport Rider GCR -Gas Cost Recovery Rider FF -Franchise Fee Adjustment Rider STIR=Surcharges Rata LEP-Line E#enslon Policy Rate M -Miscellaneous Charges Rider RA -Retention Adjustment Rider TAX -Tax Adjustment Rider WNA-Weather Normalization Adjustment Rider RRM -Rate Review Mechanism Rider CEE - Conservatiori and Energy Efrciency V. SERVICE RULES AND REGULATIONS IXHIBIT A TARIFF FOR GAS SERVICE ATINOS ENERGY CORP., unn_rev m~ne~n~~ RATE SCHEDULE: Rate R -Residential Sales APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE:1 OF 1 RATE R -RESIDENTIAL SALES Appllcatton Appllceble to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter.. Type of Service Where seMce of fhe type desired by Customer is not alfeady available at the Point of Delivery, additional charges end special contract arrengements between Companyand Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Md charges to the amwnts due under the riders listed below: Gas Cost Recovery: Plus an amdunt for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, df Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount forweadier normalization calwlated in accordance with Rider WNA Rale Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount forfranchise fees celwlated M accordance with Rider FF. Tax Adjustmeht: Plus an amount for tax calculated In accordance with Rider TAX Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).. Agreement An Agreement for Gas SeMce may be required.. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having Jurisdiction and to the Company's Tariff for Gas Service. EXHIBR A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., YIn TCV 1'\I\IICIf1~1 RATE SCHEDULE: Rate C -Commercial Sales APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 1 OF 1 RATE C -COMMERCIAL SALES Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 3,000 Md Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Companyand Customer maybe required prior to service being fumished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below. Custbmer Charge per Bill $ 20.28 per month Commodity Charge -All Mcf $ 0.7104 per Mcf Gas Cost Recovery: Plus en amount for gas costs and upstream trehsportatlon costs calculated in accordande with Part (a) and Part (b), respectivety, of Rider GCR.. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as glculated In accordance with Rider RRM.. Franchise Fee Adjustment: Plus an amauntforfranchlsefees calculated In accordance with Rider FF.. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required.. Notrca Service hereunder and the rates for services provided are subJect to the orders of regulatory bodies having judsdictlon and to the Company's Tariff for Gas Service. EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., Mm_TFY nNICIffN RATE SCHEDULE: .Rate 1-Industrial Sales APPLICABLE TO: Entire System REVISION: DATE: EFFECTNE DATE: PAGE: 1 OF 2 RATE 1 • INDUSTRIAL SALES Appllcatlon Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Clistomars with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Companys sole option and will require special contrail arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contrail arrangements between Company and Customer may be required priorto service being furnished. Monthly Rate Customer's monthty bill will be plculated by adding the following Customer end MMBtu charges to the amounts due under the riders listed below: Gas Cost Recovery: Plus an amount forges costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees glculated'm accordance with Rider FF.. Tax Adjustment: Plus an amount for tax calculated fit accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).. Curtellment Overpull Fee Upon notiFlceUon by Company of en event of curtailment or Interruptlon of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of cutallment or interruption, pay Company200% of the midpoint price for the Katy point listed In Platte Gas Dally published for the applicable Gas Day In the table entitled'Daily Price Survey" EXHIBR A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.., M lrl_TFY nNISIf1W RATE SCHEDULE: Rata I -Industrial Sales APPLICABLE TO: Entire System REVISION: DATE: EFFECTNE DATE: PAGE: 2 OF 2 February 1; 2008 Replacementlndex In the event the °rrlidpolnt" or °common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" Is no longer published, Company will calculate the applicable imbalance fees utilizing a dally price Index recognized as authoritative by the natural gas Industry and most closely approximating the applicebie Index Agreement An Agreement for Gas Service maybe required.. Notice Service hereunder and the retes for services provided ara subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receNe service under Rate I, Customer must have the type of meter required by Company.. Customer must pay Company all costs associated with the acquisition and installation of the meter. FJgiIBR A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TIX.DIVISION RATE SCHEDULE: Rater-Transportation APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE:1 OF 2 RATE T • TRANSPORTATION Application Applicable, In the event that Comparry has entered Into a Transportation Agreement, ro a customer dlrecUy connected to the Atmos Energy Corp ,Mid-Tex Division Distribution System (Customer for thetransportation of all natural gas supplied by Cusomer or Customer's agent at one Point of Delivery for use in Customer's facility. Type of service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and spedal contract anangements between Companyand Customermay be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Upstream Trensportatlon Cost Recevery: Plus an amount for upstream transportation costs In accordance with Part (b) df Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Retention Adjustment. Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an emountfarftanchisefees celculated In accordance with Rider FF.. Tax Adjustment: Plus en amount for tax calculated In accordance with Rider TAX. Surdharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).. Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Trensportatan Agreement and quantities will not be aggregated for any Customer with multiple Transportation agreements for the purposes of such fees.. Monthly Imbalance Fees Customer shall pay Company the greater of (i) $0..10 per MMBtu, or (ii)150% of the difference per MMBtu between the highest and lowest "mldpoinY price for the Katy point listed in PNatts Gas Deity in the table entitled "Daily Price Survey' during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.., MIn.TFY 111VISIr1N RATE SCHEDULE: Rate T • Trenspokatfon APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 2 OF 2 February 1, 2008 defined In the applicable Transportation Agreement; at the end of each month that exceeds 10% of Cusiomer's receipt quantifies for the month.. Curtailment Overpull Fee Upon notification by Company of an event of curtailment or Interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Compariy 200% of the midpoint price for the Katy point listed in Plans Gas Da11y publlshed for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common° price for the Katy point listed in Platts Gas Dally In the table entitled "Dally Price Survey is no longer publlshed, Company w(II celwlate the applicable Imbalance fees utilizing a dairy price Index recognized as authoritative by the natural gas industry and most closely approximating the applicable Index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Companys Tariff for Gas Service. Special Conditions In order to receive service under Rata T, customer must have the type of meter required by Company.. Customer must pay Company all costs associated with the acquistlion and installation of the meter.. EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TFJt DNISION RIDER: Rider GCR -Gas Cost Recovery APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 1 OF. 3 Octoher 7, 2008 Rider GCR -Gas Cost Recovery Applicable to Rate R, Rate C, and Rate I for alt gas sales made by Company, and applicable to Rate R, Rate C, Rate I, and Rate T for recovery of Pipeline System casts. The total gas cost recovery amount due Is determined by adding the gas cost calculated in Section (e) below and the pipeline cost calculated in Section (b) below The amount due for gas cost (Section (a)) is determined by multiplying the Gas Cost Recovery Factor (GCRF) by the Customer's monthly volume.. For Customers receiving service under Rate R and Rete C, monthly volume will be calculated on an Mcf basis For Customers receiving service under Rate I, mgnthty volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to recover actual costs. The amount due for pipeline cost (Section (b)) Is determined by multiplying the Pipeline Cost Factor (PCF) by the Customer's monthly volume. For Customers regeiving service under Rate R and Rate C, monthly volume will be calculated on an Mcf beefs.. For Customers receiving service under Rate I and Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted es necessary to recover actual costs (a) Gas Cost Method of Calculation The monthly gas cost adjustment fs calculated by the application of a Gas Cost Recovery Factor (GCRF), as determined with the following formula: GCRF =Estimated Gas Cost Factor (EGCF) + Recenclllation Factor (RF) + Taxes (TXS) + Adjustments (ADJ) EGCF = Estimated cost of gas, Incuding lost and unaccounted for gas atbibuted to residential, commercial, and indusNial sales, and any reconciliation balance of unreCOVered gas costs, divided by the estimated total residential, commercial, and industrial sales. RF = Calcuieted by dividing the dlffetence between the Actual Gas Cost Incurred, Inclusive of Interest, over the preceding twelve-month period ended June 30 and the Acual Gas Cast Billed aver that same twelve-month per'wd by the estimated total residential, wmmercial, and industrial sales for the succeeding OGOber through June billing months. Actual Gas Cost Incurred =The sum of the costs booked in Atmos Energy Corp.., Mid-Tex Division account numbers 81X1 through 813 and 858 of the NARUC Unkortn System of Accounts, Including the net Impact of injecting and withdrawing gas from storage. Also includes a credit or debk for any out-of•period adjustments or unusual or nonrecurting costs lypicalty considered gas costs and a credk for amounts received as Imbalance Fees or Curtailment Overpull Fees. Actual Gas Cost Billed =EGCF mukiplied by the monthly volumes billed to Residential, Commercial and Industrial Sales customers, less the total amount of gas cost datertnined to have been uncollectible and written off which remain unpaid for each month of the reconciliation perdd. EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DMStON RIDER: Rider GCR -Gas Cost Recovery APPLICABLE TO: Entire System REVISION: DATE: EFFECTNE DATE: PAGE: 2 OF 3 October 1, 2008 Any amount remaining in the reconciliation balance after the conclusion of the period of amortization will be maintained in the recencillatton balance and included In fhe collection of the next RF. Atmas Energy shall file annual reports with the Commission, providing by month the following amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off, Gas Cost Collected and Margin Collected TXS =Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by the estimated total resldentlal, commercial, and industrial sales ADJ =Any surcharge or refund ordered by a regulatory authority, inclusive of Interest, divided by the estimated total resldentlal, commercial, end industrial sales. (b) Pipeline Cost Method of Calculation Eadt month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class . listed below. The formula for the PCF is: PCF = PP / S, where: PP = (P - A) x D, where: P =Estimated monthly cost of pipeline service calculated pursuant to Rate CGS D =Pipeline service allocation factor for the rate class es approved In ttie Company's most recant rate case, as follows: Pl aline Cost Rata Class Allocation Factor D Rate R - Residential Service .634783 Rate C -Commercial Service .302805 Rate I - Industda! Service and Rate T -Trans ortation Service .062412 A =Adjustment applied In the curcent month to cored for the dffference between the actual and es8mated pipeline cost revenue of the second preceding month, calculated by the formula: A = R - (C - A2), where: R =Actual revenue received from the application of the PP component in the second preceding month., C =Actual pipeline crosts for the second preceding month.. A2 =The adjustment (A) applied to the PP component in the second preceding month.. S =Estimated Mcf or MMBtu for the rate lass for the curent billing month.. The PCF is calculated to the nearest 0.0001 cent EXHIBR A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., ..~~ rte.. ~~~~~...~ RIDER: Rider GCR • Gas Cost Recovery APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 3 OF 3 October 1, 2008 The Pipeline Cost to be billed Is determined by multiplying the Mcf or MMBtu used 6y the appropriate PCF. The Pipeline Cost is determined to the nearest whole cent TARIFF FOR GAS 3ERVICE EXHIBIT A ATMOS ENERGY CORP,., MID-TEX DIVISION RIDER: Rider CEE -Conservation & Energy Efficiency APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE:1 OF 1 RIDER CEE - Conservation & Enerav Efflclencv Purpose Atmos Energy Mid-Tex is proposing to Institute a complete Conservation & Energy Efficiency program which will offer assistance to qualified customer segments in reducing energy consumption and lowering energy utility bills. The proposal Is one where Atmos Energy shareholders will fund a percentage of the allowable expenses incurred annually, with a customer rate component providing the remainder of the funding., Fdlowing is ahigh-level, concept summary of the proposal. Atmos Energy Mid-Tex Division proposes to work with the communities it serves to develop the details of a new tariff and programs addressing conservation and energy efflciericy. Synoosis: Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos Mid-Tex.. Qualified Customers will receive up to two hundred dollars ($200.00) worth of caulking, weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving devices such asdock-thermostats, set-back devices ("covered Items") from approved suppliers /retailers.. Company will undertake efforts to enlist support from community groups, including its own Employee Action Program, to assist wstomers wRh Installation. If it is determined that professional Installation capabilities are necessary, the parties will agree on labor assistance amounts.. Eli ibi' Low Income -Low-income rate-payers that qualify for heating bill assistance through LIHFI~P agencies and all agencies that distribute Atmos "Share. the Warmth° funds.. Agencies that allocate assistance funds denote customer es Low Income, a status that lasts for one year. Senior Ckizen -Primary accountholder can request eligibility through ATM call center or web-site. Customer provides primary SSN which Is verified through Social Security Administration. And account holder that is or turns 65 years old in that year becomes eligible. Fundinc Initial program funding will be at two million dollars ($2,000,000). Atmas Energy shareholders will contribute one million dollars ($1,000;000..00) to this initiative annually with ratepayers providing one million dollars ($1,000,000..00) per year. It Is proposed that the program operate on an October 1 through September 30 year, with benefits being capped at the two million dollar level for the initial program period. Administration: A third-party administretdr will coordinate qualificedon of customers, voudier distribution, subsequent veriflcatbn and reimbursement of eligible expenditures and general program administretion. Program administration expenses will be funded from the annual approved budget. Program audits will be concluded and the results provided to any interested party within 120 days of the end of each program year to determine effectiveness. EXNISR A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: RiderWNA-WeatherNOrmaliZationAdjustment APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 1 OF 3 November 1, 2008 RIDER WNA-Weather Normallzatlon Adiustment Provisions for Adiustrnent the base rate per' Mcf' (1,000,000 Btu) Cor gas service set forth in any Rate Schedules utilized by the cities of'the Mid-Iex Division service area for determining notxnalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Nrntnalization Adjustment shall apply to all temperature sensitive residential, and commercial bills based on meters read during the revenue months of'November through April. Computation of Weather Normalization Adiustment The Weather Nortnalizatioa Adjustment F actor shall be computed to the nearestone-hundredth cent per Mcf by the following fottrnila: (HSFi x (NDD-ADD) ) WNAFi Ri (BLi + (HSFi x ADD) ) Where = any pazticulaz Rate Schedule or billing classification within any such pazticulaz Rate Schedule drat contains more than one Billing classification WNAF{ = Weather Normalization Adjustment Factor for the i~ mte schedule or classification expressed in cents per Mcf Ri base rate of'tettgrerature sensitive sales for the ith schedule m classification approved by the entity exercising original jurisdiction. HSF i = heat sensitive factor for the i~ schedule or classification calculated as the slope of the lineaz regressian of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule of classification and weather station as part of'the RRM filing,. NDD = billing cycle normal heating degree days calculated as the sirttple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days.. Bli = base load sales for the i~ schedule or classification calculated as the y- intercept of dte linear regression of'average sales per bill (Mcf) and actual heating degree days by month for the test yeaz by schedule or classification TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID•TEX DNISION RIDER: Rider WNA- Weather Normalizatlon AdJustment APPLICABLE TO: Entire System REVISION: DATE: EFFECTNE DATE: PAGE: 2 OF 3 November 1, 2008 and weather station as part of the RRM filing the Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA; = WNAF; x qU Where qq is the relevant sales quantity for the jth customer in ith rate schedule. Filings with Entities Exercising Orieinal Jurisdiction As part of its azmual RRM filing the Company will file (a) a copy of each computation of'the Weather Normalization Adjustment Factor, (b) a schedule showing the effective date of'each such Weather Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer bills, with customer information deleted, for each rate schedule or classification to which the WNA was applied in the preceding 12 month period.. To the extent that source data is needed to audit the WNA application, such data will be provided by the Company as part of the annual RRM tiling. If'the RRM is discontinued, as provided in the Rider RRM tariff; the information required herein to be filed with the entities exercising original jurisdiction shall be filed on Match 1 of each yeaz.. Base Use/Heat Sensitivity (HS Factors Residential Commercial Base use HSF Base use F1SF Weather Siririon Mcf Mcf/FTT1T) MrF a,r..artrnn Abilene 1.14 .0131 8.11 V.0631v Austin 1.31 ,0136 18.05 .0669 Dallas 1.57 .0185 18.08 .0925 Waco 1,20 .0138 10.97 .0606 Wichita Falls 1.27 0147 11.58 .0581 EXHIBIT A TARIFF FOR GAS SERVICE ATMO3 ENERGY CORP., MID-TEX DIVISION RIDER: Rider WNA-Weather Normalization Adjustment APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: PAGE: 3 OF 3 November 7, 2008 Sample WNAF~ Calculation: 1533 perMcf' = 12267 x Where i = Ri = HSFi = NDD = ADD = Bli = (.0131 x (30.17) ) (1..14 + (.0131 x 17) ) Residential Single Block Rate Schedule 1.226'7 per MCF (Rate R -Final (hda GUD No. 9670) .0131 (Residential -Abilene Area) 30 HDD (Simple ten=year average of Actual FIDD for Abileae Area - 9/15/06 -10!14/06) 17 HDD (Actual HDD for' Abilene Area - 9/15/06 -10/14/06) 1.14 Mcf' (Residential -Abilene Area) EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.., MID-IEX DNISION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTNE DATE:. PAGE: 1 of 10 RIDER RRM-RATE REVIEW MECHANISM se: Ihis atecbanism is designed to provide amoral earnings transparency All rate calculations under this tariff' shall be made on a system wide basis. 1£ through the implementation of the provisions of this mechanism, it is determined that rates should be decreased or iacteesed, thw rates will be adjusted accordmgly in the manner set forth herein.. The rote adjustments implemented under this mechanism will reflect annual changes in the Company's cost of service end rote base. This adjustment will be authorized for an btitiai Impkaxaffition Period. With the conclusion of the fmal tale adjustment, if any, for the Initial Implementation Period, each entity having original jurisdiction may revoke, amend, or approve Subsequem Itaplenrenffition Period(s) for, the mechanism. Definitions a) the Annual Evaluatlon Date shall be the date the Company will make its annual Sling under this mechanism. The Annual Evaluation Date shall be no later than Mazch 1, of each year, This filing shall be effective in electronic fomr where practicable. the initial filing shall be made the Isar of March 31, 2008 or upon approval of this tariff b) Aadited Financial Data shall mean the Company's books and records related to the Company's Mid- Tex operating area and shared services operntions Audited Financial Dafa shall not require the schedules and information provided under this tariff to undergo a separate financial audit by an outside auditing film similar to the Company's affiual financislaudik. c) the Evaluatloa Period is defined as the twelve month period ending December 31, of each calendar yeaz. The initial Evaluation Peiod shall be calendar yam 2007 d) the Rete Effective Period is defined as the earlier of the twelve month period for which rotes determined under this mechanism will be is effect or subsequent rotes are implemented e) Per• Connection Baeis is defned as the existing average number of Mid-I ex active meters to customers during the Evaluation Period. f) Inttlal Implementation Period is defined as the three (3) yeaz period commencing with the Company's filing order this mxhanism for the calendar year 2007, effectivc October 1, 2008, and shall c6nclude with the implementation of rote adjustments, if any, for Ure third Rate Effective Period.. g) Sabsequwt Intplementatlon Period is defined as any flux (3) year period after the conchtsion of'the Ini[ialImplemenffitionPeriod b) Final Order is defined es the most recent order establishing the Company's latest effective rotes for the area in which the mechanism is implemented, and shall include municipal rate ordinances and resolutions.. EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP, MID-TEX DNISION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 2 of 10 hate Review Mechanism the Company shall ffie with each regulatory authority having original jurisdiction over the Company's rates the schedules specified below for the Evaluation Period, with the filing to be made by the Armual Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the Company's Audited Financial Data, sa adjusted, and provided in the same format ere Atmos' rate filing with municipalities on September 20, 2007, will include the following: a) Company's 13 month average actual gross plant in service, accumulated depreciatioq accn~itated deferred income taxes, iavealory, working capiml, and -other rate base components for the Evaluation Period, A 13 month average will be used for these items for the true up calculation; Evaluation Period ending balances for these items will be used for the calculation of rates for the Rate Effective Period The ratemaking treatments, principles, fmdmgs and adjustments included in the Final Order will apply Regulatory adjustments due [o prior regulatory rate base adjustment disallowances will be maintained, Cash working capital will be calculated using the lead/lag days approved in the Final Order. Accumulated defernd income taxes (ADfI) will be calculated using the methodology used in the Final Order. The RRM Schedules & Information section of this tariff identifies those ADIT components [o be included m the calculation of rate base for both the Evaluation Period and Rate Effective Period calculations.. b) The Company's depreciation expense, operating and ma+a+P^~^ce expense, and taxes other than income taxes booked is the period will be used for the We-up calculation purposes. Depreciation rates booked in the period will be those approved in the Final Order, or the rote most recently approved. All calculation methodologies will be those approved in the Final Order except when noted err included in this tariff or is the most recent order addressing the methodology. - ffi additioq the Company shall exclude from operating and maintenance expense the discretionazy costa to be disallowed from Rider RRM filings listed is the RRM Schedules and Lifomiativn section of this tariff . c) Rehm on Egidty (ROE) shall be maintained at 9 6%. d) Cost of debt will reflect actual cost fns the Evaluation Period. A l3 month average cost of debt sad capital stmcture will be used for the true up calculation; Evaluation Period ending balances for cost of debt and capital suucturo will be used for the calculation of rotes for the Rate Effective Period, Capital strucnne will be the actual Evaluation Period ratio of long-term debt and equity, with percentage equity sot to exceed die percentage established in the Final Order in G U.D.. No, 9670 (48 1% equity), based on the calculation methodology outcomes used above. e) All applicable accounting adjustments along with all supporting work papers. Such adjustments may include: EXIiIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP, MID-TEX DIVLSION RIDER Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 3 of 10 I) Pro-forma adjustments to update and annualize costs and revenue billing deterrrdrraats for the Rate Effective Period. 2) Pro-forma or other adjustments required to properly account for atypical, unusual, or nonrecurring events recorded during the Evaluation Period, t) Shared Services allocation factors shall be recalculated each year based on fhe latest component factors used during the Evaluation Perind, but the methodology used will be that approved in the Final Order.. Calculation of Rate Adiustment a) The Company shall ~ provide additional schedules indicating the following revenue deficiency/sufficiency calculations using the methodology accepted in the Final Order, a 13 month average will be used for the specified items for the true up calculation, Evaluation Period ending balances will be used for the calculation of rotes for the Rate Effective Period. These schedules shall identify the rote adjustments necessary for both a tore-up of revenue for the Evaluation Period and the setting of prospective rates fm' the Ra[e Effective Period. The net result of these rate adjustments ahaE be reflected in the proposed new rotes to be established for the Rate Effective Period. In calculating the required rate adjust~nt4, such edjustmeats will be made pro- ratably to the customer charge and usage charge based upon actual revenue generated, as adjusted under the Company's approved Weather Nmrnalization Adjustment (WNA) Rider Provided, however, that neither the Residential nor the Commercial customer charges may increase more than 20% per year b) If' Coarpaay's earnings druing the Evaluation Period exceed 9..6°/, return on common equity, the Coarpany shall calculate a decrease to rotes to reduce the revenue required to achieve a return on equity of 9.6%for the Evaluation Period. If'Corrrpaay's earnings during the Evaluation Period aze below 9.6% rohun oa common equity, the Company shall calculate an increase in rates to collect the additional revenue requited to increase its return oa equity for the Evaluation Period to 9 6%.. In order to avoid double-counting of huo-up revenues, any true-up revenue booked during the Evaluation Period that is related to prior periods will be removed in determining both the prospective rates for the Rate Effective Period and the truo-up increase o: decrease related m tbe currem Evaluation Period. Ilre RRM Schedule & Lil'ormatioa section of this tariff provides an example calculation. After the prospective rates for the Rate Effective Period are calculated, the truo-up element shall be added to or deducted from those rates in order [o determine the rates that shall thereafter be recovered c) The Company may also adjust rates for the Rate Effative Period to include recovery of any known and measurable changes to operating and maintenance costs including, bnt not limited to, all payroll and corttpensation expense, all beceflt expense, all pension expense, insurance costs, materials and supplies, bad debt costs, all medical expense, transportation and 6uIlding and lease costs for the Rate Effective Period Provided, however, that adjustments may only be made for costs that are reasonable sad necessary. Additionally, utiEty plant and rate base for the Rate EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP, MID-TEX DMSION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 4 of 10 Effectve Period well be established by using the Evaluation Period ending balances, including associated changes in depreciation and amorOZation expense and taxes. ffi calculating the Company's known and measurable changes for prospective F.RM adjustment purposes, the following limitations will apply, oa a Per Concectian Basis Operating and Maintenance expenses per connectien for the Rate Effective Period cannot increase more than 5% per yeaz without specific identification and justifiwtioa. Any proposed adjustment above 5% per yeaz, is subject to the provisions of the Evaluation Procedure of this tariff Such procedures provide that the regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work collaboratively to seek agreement on the proposed adjust~ats to the Company's schedules and proposed rates. Justifrration for such expenditures over the cap shall include en eveW or combination of events beyond the control of the Company. The beginning adjusted Operation and Maintenance expense pet connection for the 2007 RRM Evaluation period will be limited to not exceed $151 million divided by the connections for the period The increase in adjusted Operation and Maintenance expenses per connection for the 2008 Rate Effective Period and subsequent Rate Effective periods cannot exceed 5% per year, without specific identification and justification The RRM Schedule & htformation section of this tariff provides an example calcuhition of the 5% limit 2.. Net pleat investrneat per connection for the Rate Effective Period cannot increase more than 5% per yeaz without specific idetnification end justification. Any proposed adjustretem above 5% per year, is subject to the provisions of the Evaluation Procedures of this tariff. Such procedures provide that tht regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work wllaboraflvely seek agreement on the proposed adjustments to the Company's schedules and proposed rates. However, m performing a cap test to verify compliance, Company shall exclude any changes is net plant investment associated with federal, state, or local mandates related to safety, compliance, or road moves. The 2007 true up calculation shall be made using the net plant investment of $1,243,607,206. The initial 2008 prospective rate wrll be set using net plant ]inrihd to not excad [$1,243,607,206 divided by average active melees far the 13 months ended June 30 2007] daces 1 025 times the average active meters for calendar year 2007.. Subsequent filittg calculations of net plant investment will be made using the same method used in the Company's September 20, 2007 Statement of Intern with the following exceptions: 1) A 13 atonth average will be used for net plantin the true up calculation and 2) Evaluation Period ending balances will be used for net plant in the calculation of rotes for the Rah Effective Period the rate increase limitations set forth in this taziff~ shall not preclude the Company from recovering any excluded net plant costs during a subsequent Evaluation Period in which Oce 5% lindtation for net plant investment is not reached or in a subsequent Statement of Intent case To the extent that the Company seeks to recover any excluded net plant costs during a subsequem Evaluation Period is which the 5% limitation for net plant investment is not reached m in a subsequent Statement of Intent case, the Company shall EXHIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 5 of 10 identify these costs as a specific line item in the schedule accorvpanying the RRM rate adjustment Sling. the regulatory authority may disallow any net plant investment that is not shown to be prudently iacu[red. Approval by the regulatory authority of net plant investment puranni In the provisions of this tariff shall constitute a finding that such net plant investment wes prudenly incurred. Such finding of prvdence shall not be subject to further review in a subsequent Evaluation Period or Statetaeat of Lrteat lrling.. d) the Company also shall provide a schedule demonshating the `proof of revenues" relied upon to calculate the proposed rate for the Rate Effective Period.. The proposed rates shall conform as closely as is pmctfcable to the revenue allocation principles approved in the Final Order. Attestation A sworn statement shall be filed by the Company's Chief Officer in Charge of Mid-Iex Operation affirming that the filed schedules are in wtapliance with the provisions of'this mechanism and are tnre and correct to the best ofhis/her knowledge, information and belief No testiatony shall be filed, Evaluation Procedures the regulatory authority having original jurisdiction over the Company's rates shall have no less than ninety (90) days to review the Company's filed schedules and work papers The Corrgtany will be prepared to provide all supplemental information as may be requested to ensure adegnte review by the relevant regulatory authority.. The Company shall not unilaterally impose any limits upon the provision of supplemental infmmatlon and such information shall be provided within ten (10) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the schedules into compliance with the above provisions. Outing and following the ninety (90) day review period and a thirty (30) day response period, the Company and the regulatory authority will work collaboratively and seek agreement on, the proposed adjustments to the Company's schedule and proposed rates. If agreement has been reached by the Coayrany and the regulatory authority, the regulatory authority shall authorize an increase ar decrease to Ote Company's rotes so as to achieve the revenue levels indicated for the Rate Effective Period If, at the end of the thirty (30) day response period, the Company and the reguhrtary authority have not reached agreement on the proposed adjustments, the Company shall have the right to appeal the regulatory authority's action m unction to the Railroad Commission of Texas Upon the filing of any appeal, the Company shall have the right to implenreat the proposed RRM rate adjustment, subject to refund. If approved 6y the entity exercising original jurisdiction, the rates established pursuant to the Rate Review Mechanism for rho first Rate Effective Period shall be effective on Oetober 1, 2008. Thereafter, rates established pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as provided herein, shall be effective oa July IS of each year Reconsideration end A~txal EXFIIBIT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVLSION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 6 of 10 Orders issued pursuant to this mechanism are mtea>aldng orders and shalt be subject to appeal under Sections 302.001(b) and 103 021, et seq ; of the Texas Utilities Code (Vernon 2007). once Notice of'the annual Rate Review Mechanism filing shall be provided pursuant to Section L04 103, Ilnt.. Ulu.. Cone ANN, ao later than forty-five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following iafoaffition: a) a description ofthe proposed revision of'mtes and schedules; b) the effect the proposed revision of retes is expected to have oa the rates applicable to each customer class and on an average bID for each affected customer; c) the service area or areas in which the propoud mte adjustment would apply; d) the date the proposed rate adjusmtem was filed with the regulatory authority; and e) the Company's address, telephone number and website where information concerning the proposed mte adjustment maybe obtained. RRM Schedules and Informatlog Accumulated Deferzed Inwme Iax ("ADII'~ Item Ia Be Reeog>L+~Pdm Rate Base r i Ibe following list identifies thou ADII components to h included is the calculation of rate base for both . the Evaluation Period and Rate Effective Period calculations: Mid-Iax: Gas Plant in Service Insurance Acciuals Benefit Accruals Deferred Expense Projects Allowance for Doubtful Aaounts Customer Advances UNICAP Section 263A Costs (which shall be removed from Atari Mid-Tex when these costs ere tmnsfemd lb Atmos Pipeline Iexas) Regulatory Asset -Mid Tex Regulatory Liability -Mid-Tex Other Plant ~ - EXHIBTf A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DNISION RIDER: Rider RRM - Rale Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTNE DATE: PAGE: 7 of 10 Accumulated Deferred Income Iax ("ADIII Items 7o Be Reco~ d i_ Rat Base (continued) SSU - Customer Support: Gas Plant m Service SSU -General O[IIce: Gas Plant in Service Lssnrance Accmals BenCfifs Ac«va19 Deferred Expense Projects Prepaid Expenses Regulatory Liability - Atmos 109 FAS 115 Adjustment Treasury Lock Adjustment Revenue Agent Report Canyforward~Adjustments 1990.1985 Tex Net Operating Loss Credit Cazryfmwards State Bonus Depreciation R & D Credi[ Valuation Allowance Other Plant I)iscretiomrv Costs to Be Disallo - fiom Rider R7N linos the following types of'employce reimbtnsed expenses and directty incurred costs are to be reraoved from ell expense and rate base amounts included within Rider RRM filings for the Evaluation Period and for the Rate Effective Period: Amounts incurred for have], meals or entertainment of'employee spouses A~ums for air travel that exceed,publiehedcoramercial coach air fazes Amounts iacuned for hotel rooms exceeding $250 per night inclusive of'taxes and fees assessed on such rooms. Amounts for alcoholic beverages. Amounts paid for admission to entertainment, sports, art or cultural ~ events, and all event sponsorship costs Amounts for social club dues or fees. EXHIBTI' A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DNISION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTNE DATE: PAGE: 8 of 10 Exarrgtle Calculation A -Revenue for RRM I'mo-tlp Portion of'Rate '•POR IL LUSIRAIION PURPOSES ONLY. AMOUNI S ARE HYPOIHETICAL, AND DO NOI CORRESPOND WITH OTHER EXAIvIPLE SCHEDULES'` Ptt Dooks Revenue, excluding Irve-Up Revenue from prior Evaluation Periods Per-Books Itue-Up Revenue based on 2007 .Evaluation Period [l] Per-Hooka Irue-Up Revrnue basal on 2008 Evaluation.Period (1] Per-Hooks Truo-Up Revenue based on 2009 Evaluation Period [ 1 ] Iotal Per-Books Revenue Add / (Subtract): Revemte from Riders GCR, FF, & 7AX Surcharges for Rate Case Cost Recovery Irue-Up Revenue for 2007 Evaluation Period [ I ] Irue-Up Revenue frn 2008 Evaluation Period [i] Remove out-of-period and unusual items Realized Revenue for Irue-Up Calculation Calendar Calendar Calendar Calrndar Calrndar - 2001 2008 2009 2010 2011 $150,000 $156,000 5157;700 5158,200 $158;700 800 1,200 (364) (546) 234 351 $150,000 $156,800 $158,536 $157,888 $159,051 (110,000) (111,000) (112,000) (200) (200) .(200) (800) (1,200) 364 39,800 44,800 45,500 Revenue Requiretrtent at 9 6% ROE [2] 41,800 43,890 46,085 True-Up Increase (Decrease), subject to Revenuo- Related Iax Cuoas-up $ 2,000 $ (910) $ SSS [1] For illustration proposes, example assumes 40Y° of'the total calculated truo-up is collected in the following calendar year, Each true-up is subject to a proof of wEection or retwd after the collectionhefundperiod, and any residual amount will be refwded rn w1leMed in the subaequrnt period. [2] Since realized revenue for the true-up calculation excludes Riders OCR. FF, and IAX, as well as surchages for rate case cost recovery, the revenue requirement for purposes of the trve-up calculation also excludes all wrresponding expenses for the Evaluation Period.. EXFIIBTT A TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: EFFECTIVE DATE: PAGE: 9 of 10 Example Calculation B -Revenue for RRM Prospective Portion of Rate "FOR ILLUSTRAIION PURPOSES ONLY. AMOUNIS ARE HYPOIHEIICAL, AND DO NOI CORRESPOND WIIH 07HER EXAMPLE SCHEDULES' Oct 2008 -Sept July 15, 2009 - July 15, 2010 - 2009 July 14, 2010 July 14, 2011 Rate Effective Period Revenue Rico-Out at Cwrent Rates [l] $ 60,000 $ 65,000 $ 68,000 Remove Irue-Up Portion of Revenue [2] Revenue at Curnnt Rates for Rate Effective Period Deficiency Calculation ' ~ (2,500) 1,100 60,000 62,500 69,100 Revenue Requirement for Rate Effective Period 65,000 68,250 71,663 Rate Effective Period Revenue Increase / (Decrease) before Irve-Up, subject to Revanue Iax Gross-Up [3] $ ~ 5,000 $ ~ 5,750 $ 2,563 [1 ] To be calculated using pro•forma armualized billing detemunants, ea provided for in this tatifT; priced out at the cuttrnt rates at the time of the deficiency calculation.. [2] Io be calculated using profmma annualized billing detertmnanta, as provided for in this tariff, priced out at the portion of current rotes at the time of the deficiency calculation intended to true up.prior Evaluation Period(s) [3] Ihis represents tire prosputive deficiatey portion of'the RRM adjustment the truFUp adjustment, demonsnated in Example Calculation A, will be combined with this adjusmtent to determine the total adjustment for the Rate Effective Period. TARIFF FOR GAS SERVICE EXHIBIT A ATMOS ENERGY CORP.., MID-TEX DNISION RIDEER: Rider RRM -Rate Review Mechanism APPLICABLE TO: Entire Mid-Tex Division REVISION DATE: . EFFECTNE DATE: PAGE: 10 of 10 Exar~rle Calculation C - Operation & Maintenance Expense Cap Iest ++All Amounts are Hypothetical, and do not correspond with other exaagde calculations++ Evelulatbn Pedod (Calendar VeSC Benchmark O&M Per Camectlan Qncreasetl 5%ennualty) Gas SaMCe Connections [1] Me~dmum 08M PJloxetl ::44Z 144@ i~ S 97.23 $ 702,09 E 107.19 1,653,000 1560,000 1,567,000 S 151,000,000 E 159,260,400 6 167,966,730 [7 ] For ilhlstration ptnposes only, Gas Service Connecfioas are estimated for 2007 and are assumed to increase 7,000 camections per year Therefore, 'Maximum O&M Allowed' is estimated for 2008 and 2009: Actual Gas Service Connections for 2007 will be used to calculate the 2007 O.@M per Connection, For each subsequent Evaluation Period, the poor period O&M per Connection will be increased by 5°.6, and then multiplied by the actual Gas Service ConnxHons for the same period to derive the 'Maximum O&M Allowed'. Q N m O `u~ a W W F v W H ZO qQ Q 2 y. J ~ W w a ~O( V8~ ~~w~ •~ m ~ W ? O V f ~ m ~'~ ~' W W ~z~~ 9 N m m a~~ ° ~ ~ a ggam,, ~ ~ gg,, ~ ~ a~Ep oo~ O ° ° ry o,~ i 5 ~S a O m o m ~ 00 0 OiG ~ ~ t~ Gr r L O G O , N O L v av ~Q E i ~ ~ V 8. N 1~ In N O A ~, O b w w w w w w w w w w ttpp rem ^w ry~nN~n mm~ u°3. mc~i ° wm f01~ M 1~ f001 N~ N ~~N I~ ' W!~ {~{~0~ W OfOh 1~ O W m ~O Op ~~~~y~ .-gqaot~tVV omaN~ a o~ ~N~y~n~~ ~9 ~f~N~ ~m N W W I~N N r ' O ^G m N < ' a w w w w w w w w w w ~n~~ vm~w~ iq .~-~m ~3i~ ~~~im 8 opf~ ~epp ~~pp C ~+ {~ m m W cC ya Oryryl V ~ t0 W OCmm at0 <1yy~ < OY boy NOD r tri O N t6 O m N tO+f ~ V .m ~ N Y r ~ W ~ N~ a w w w w w w N M w w ~~yr~p F m ~ ° ~ ~ W ~ S m 9 ~- ~ ~ 3 ~¢ ~Kap C €~m ~~^~ a88 ~~LL ~ ~~~ ~~a ~~ ~~~~ ~~ a a~~ VE'~ SSS~ ~f~~ ~U~y~ C ~~ ~ €SE E€E ~~~~ Ka ggK fii ~C7LL~ ~d~ c~~cY~ g?~~ $~S~ ~¢a~saa ~N17<N Dhtp W O~N"^f0'CO W N NNNN ~ NN N Q N d 0 ~N y d ~kqk~ dWZ saw ~~n ~qaz~ °u~Z ~ W ~~~m W ~} Q r O r w tlf A O _~ m r W r m A ~ m ~ ~ N ~i o mr M N yO W M N N I~~ dl+ W IW ~ tom') bb ( l RI r pp d p y W Si R °i m w w a ~ ~ N N ~ ? 0 LL LL LL ~ ~ ~ ~ y3 } N N _~ ~ m C ~ ~ Q Cpl $ L y ~ ' m qp1 C a a '¢' F ~ m E v U J (7 (7 ~ ~ ~ $$Q ` ~ ~ ~ mm m o m m m ~ 5 RR C 5 C U ~-NM<ilf fp f~ Cf W r'~~~~~0en- 6i W p C NNNN Ercata ATMOS ENERGY CORPS, MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING JUNE 30, 2007 Rate R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rate Characteristics: Customer Charge Consumption Charge ($/Mcf) Rider GCR Part A Rider GCR Part B Billing Units (1 ): Bilis Total MCF Present Revenue W P J-4 Page 1 of 3 Reference (c) $10..69 CCs $1.2710 ccS $7..5520 Schedule H , $0..5990 schedwe I 17,144,647 WP J-11 76,798,906 wP J-t t Customer Charge $ 183,276,276 Consumption Charge 97,611,410 Base Revenue $ 280,887,686 Rider GCR Part A 579,988,302 Rider GCR Part B 46,003,459 Subtotal $ 906,879,447 Revenue Related Taxes 52,686,332 Total Proposed Revenue- Rate R $ 959,565,779 Note 1: See Billing Determinants Study for details Errata ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING JUNE 30, 2007 Descrlptlon . Total Rate C 1 Rate Characteristics: W P_J-4 Page 2 of 3 Reference 2 Customer Charge $20.28 ccs 3 4 Consumption Charge ($1Mcf) $0.7104 ccs 5 6 Rider GCR Part A $7.5520 scneduie H 7 Rider GCR Part B $0.5001 seneduie i 8 9 Billing Units (1 ): 10 Bills 1,471,279 WP J-12 11 Total MCF 49,665,131 WP J-12 12 13 Present Revenue: 14 Customer Charge $ 29,837,538 15 Consumption Charge 35,282,109 16 Base Revenue $ 65,119,847 17 Rider GCR Part A 375,072,987 18 Rider GCR Part B 24,837,930 19 Subtotal $ 465,030,564 20 Revenue Related Taxes 27,016,551 21 22 TotalProposed Revenue- Rate C 492,047,115 23 24 Note 1: See Billing Determinants Study for details ~r Errata W P_J-4 Page 3 of 3 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING JUNE 30, 2007 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 i6 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (a) (b) --- ~C). Rate I &T Rate Characteristics: Customer Charge $344.75 ccs Block 1 ($/MMBTU) $0.2200 CCS Block 2 ($/MMBTU) $0.1600 ccs Block 3 ($/MMBTU) $0.0493 cCS Rider GCR Part A $7.5520 schedule H Rider GCR Part B $0.2804 scneduie i Consumption Characteristics: Block 1 (First 1,500 MMBTU) 0.21691 t~). Block 2 (Next 3,500 MMBTU) 0,24651 t~) Block 3 (Over 5,000 MMBTU) 0.53657 t~) Billing Units (11: BIIIS 11,542 WP J-13 Block 1 9,694,939 wP J-93 Block 2 11,018,084 WP J-13 Block 3 23,982,442 WP J-1 3 Total MMBTU 44,695,485 Sales Volumes 2,858,579 WP J-1 3 Present Revenue: Customer Charge Block 1 Black 2 Block 3 Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Proposed Revenue- Rate 18T $ 3,979,105 2,132,887 1,762,893 1,182,334 $ 9,057,219 21,082,128 12,534,050 $ 42,673,397 2,479,166 $ 45,152,563 Note 1: See Billing Deterrnlnants Study for details. RESOLUTION s:\our documents\resolutions\08\cap & mo rcpt police prajecLdoc RESOLUTION NO. zO - 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, SETTING A MAXIMUM EXPENDITURE LIMIT OF $720,814 FOR THE POLICE CITY HALL EAST EXPANSION PROJECT; REQUIRING MONTHLY REPORTING TO THE CITY COUNCIL OF THOSE FUNDS; AND PROVIDING AN EFFECTNE DATE. WHEREAS, on March 4, 2008, the City Council of the City of Denton authorized the expenditure of funds by Ordinance No. 2008-052 related to the renovation of space at the City of Denton Police City Hall East Expansion Project ("Project") by the Facilities Department; and WHEREAS, the City Council desires to set a limit of the amount of funds to be spent for the Project; and WHEREAS, the City Council requests that the Facilities Department provide a monthly report of expenditures for the Project; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council is setting a limit of $720,814 for expenditures related to the renovation of space at the City of Denton Police City Hall East Expansion Project, as referenced in Exhibit A, which is attached hereto and made a part hereof. The $700,000 will be acquired from bond funding. The $20,000 for construction management will come out of the Facilities Management 2007-2008 budget as shown in exhibit "A" SECTION 2. The City Council is requiring that a report be provided to Council showing the expenditures for the Project on a month-to-month basis, as referenced in the example Exhibit B, which is attached hereto and made a part hereof. Exhibit "B" is an example report and its contents and format may change at the City Council or City Managers request SECTION 3. This Resolution shall become effective immediately upon its passage and approval. G PASSED AND APPROVED this the ~`sy day of , 2008. ~c~~ PERK R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: s:\nur documents\resolmions\08\cap & mo rept police projccl.doc APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ~ ~ Page 2 Exhibit A + BRUCE HENINGTON, CFM EXECUTIVE DIRECTOR OF FACILITIES MANAGEMENT & FLEET SERVICES OFFICE: (940) 349-7200 (940)349-8134 FAX : (940) 381-5401 EMAIL: brute.henington®cityofdenton.com www.cityo/denton.com 60d E. HICKORY • DENTON, TEXAS • ]0205 lob Name: Police CHE Expansion April 2008 lob No.: 7777 Page 1 of 3 Date: March 14, 2008 Ref.owg.: MEP1A7777 Design by: David Robinson Chkd. By: bh~POIICe 1. NEW CONSTRUCTION INTERIOR SHELL FINISH-OUTTO INCLUDE (BASIC CONSTRUCTION): YELLOW (#1) ON ATTACHED MAP (Estimated Cost: $276,182) • Hard the surface for Sft wide hallways emergency lighting • Paint, sand, light texture sheet rock metal stud finish; no insulation • Minimum of 4 electrical outlets in every office • 2 New HVAC with 2 zones only for 13 new offices, radio room, squad room, and storage • Approximately 114 data/phone drops • Emergency exit lighting and electric to meet code • Solid wood core doors; not to match expensive existing • Permitting • All to meet Municipal Code • No plumbing (water, sewer, gas, waste lines) • No structural changes • Fire sprinklers new • No emergency generator 1) Ceiling 3,840 sq ft 2) Sprinkler 3,840 sq ft 3) Carpet 380 sq yds 4) 10' Wall/9'6" Ceiling 1,150 Linear feet 5) Paint Texture 1,150 Linear feet 6) Electrical (Lighting, plug, ex it) 3,840 sq ft 7) Data Ports 114 ea 8) New A/C 2 units/ 2 Tstats 9) 16 Doors and Hardware 16 ea 10) Demo Equipment/Roof Repair 11) Ceramic Tile 1,200 sq ft lA. NEW CONSTRUCTION OF FURTURE SPACE ON ATTACHED MAP (Estimated Cost: $143,040) • Fire sprinklers New • Electric to meet code • Short 6'hallwaywalls • One office, storage closet, and conference room • One 40' x 72' room for future 1) Ceiling 3,840 sq ft Exhibit A 2) Sprinkler 3,840 sq ft 3) Carpet 430 sq yds 4) 10' Wall/9'6" Ceiling 350 Linear feet Paint Texture 350 Linear feet 6) Electrical (Lighting, plug, exit) 3,840 sq ft 7) Data Ports 10 ea 8) New A/C 2 units/2 Tstats 9) Doors and Hardware 6 ea 10) Demo Equipment/Roof Repair 2. USED SPACE NEEDING REMODELED: ON ATTACHED MAP (Estimated Cost: $87,397) • Traffic Room • New Traffic Sergeants Office • New Report Room • New Weight room (same as new construction using some existing walls) 1) Ceiling 1,500 sq ft 2) Rearranging Sprinkler 1,500 sq ft 3) Carpet 166 sq yds 4) 10' Wall/9'6" Ceiling 724 Linear feet un-insulation 5) Paint Texture 724 Linear feet 6) Electrical (Lighting, plug, exit) 1,500 sq ft 7) 10 Data Ports 8) Rearrange A/C 5 ton 9) Move existing A/C from old report room to new report room 10) 6 Doors and Hardware 6 ea 11) Ceramic Tile 250 sq ft 3. OLD SPACE MINOR WORK BASIC /REFURBISH: ON ATTACHED MAP (Estimated Cost: $19,695) • Change swing of one door • No wall movement • Paint • New carpet • Small amount of ceiling repair 1) Change swing of a door 2) Paint clean up 940 Linear feet 3) New carpet 200 sq ft 4) Ceiling repair 500 sq ft Exhibit A 4. ~ . - (Estimated Cost: $134,500) 1) Architect or engineer fee (6% of Construction) 2) Sale of Bonds 3) Furniture 4) Move and clean up 5) Testing and balancing 6) Fire alarm security (per code) City Hall East Police Department Renovations Expenditures Construction Estimate $660,814 Contingenty 40 000 Total Project Cost $700,814 *Construction Mgmt $ 20,000 Resources 2008 COs $500,000 From Reimbursement Ordinances Approved 3-5-08 2007 COs $ 36,946 From account number 30-454-100120454 2000 COs 163 868 From account number 30-437-300001437 $700,814 *Construction Mgmt $ 20,000 (Not included in the total project cost) *NOte: Construction management is funded by 2007-08 Facilities Management budget. Modified 3-10-OS NORTH u YB ~ „~ , E t g 1 N ~~ ! Q ~ . ~ u, ~~~ _ ~ i v7n~ p `i ~l..J 6!J ~.ILJ ;~~ ~~~ ~~ ~~ ~~- °o ~ ! jfl ~~' ~ ~ i _ _-. ... _..... m __ ... ........ ®®..__~ _.~ O~ 8 ~o s a ~ ~ °O ~ o® ~ ~ ~ 4 Q da ~ 3 `L10 ~~ 6~ ~ : pltlal ~..'r`+~ lc~ o 9~ d r ,IL/ M .~ ~ ~ ;::, d ir{ ~~ mlJ' ~ I _i~}~~I .._..._...- -... ... -- _. wl _ 6 t~ ~ a a fi~ I' ~~ f ~`~ ~~ ~ ~~: a r~ r." ~ „~ O ~ O 7 ~~~ ~ 0 "'' ~ S~ ~: O~ ~~ 4 r 80 ~ ~ ®o ~ $ r-n ;, ~? MONTHLY ExhibFt s PROJECT REPORT PROJECT NAME: City Hall East Police Renovation RESOURCES: 2008 COs $ 500,000.00 2007 COs $ 36,946.00 2000 COs $ 163,868.00 Facilities Management 2007-2008 budget $ 20,000.00 Total $ 720,814.00 BUDGET: Construction Administration Cost Construction Mgmt Contingency SCHEDULE/DATE: Architect Contract Mgmt Bid Specs Permitting Asbestos Construction Plumbing HVAC/test & balance Electrical Data Fire Protection Security Roof Flooring Administrative PROJECT MANAGER: Bruce Henington Expended to Prop osed eudeet Bud get to date date Differerice' $ 526,314.00 $ 526,314.00 $ - $ j $1 Y34,500.00 $ 134,500.00 $ - $ ~ )- $ 20,000.00 $ 20,000.00 $ - $ ~) - 1$ do';ooo.oo $ 40,000.00 S - $ 11 - 4 ~ ti .Remaininw/Short S i11 I ;,;~ . j~1,. „ -~- CHANGES or CHANGE ORDERS: 1 ~ I I!! Amount COMMENTS: ° ° ° (~ cx~ ra n n ~ n T. a n li s~i rt~ ~ .tea /~ rk~ aa. ~wi ~ U CGIIl~UU8611~J bVll(~IUIlC9J~l~tiltlll~.tlll6 RESOLUTION S:\Our Documents\Resolution5108\Cinco De Mayo alcohol sell.doc RESOLUTION NO. .ZOO - ,~ A RESOLUTION ALLOWING LA MEXICANA RESTAURANT TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY 3, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Park and through the Park and Recreations Department co-sponsors a Cinco De Mayo Celebration at the Quakertown Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, Valentin Carmona, doing business as La Mexicana Restaurant (called "La Mexicana"), has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Cinco De Mayo Celebration on May 3, 2008; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that La Mexicana be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. La Mexicana shall be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration on May 3, 2008 at the Quakertown Park upon the following conditions: 1. They shall be responsible to obtain the temporary license and permit for_ selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00; 4. Liquor/Dram Shop Liability in the amount of $250,000 per occurrence for any event occurring on City-owned property where alcohol will be provided or served; S:\Our DocumenlsUtesolu[ions\08\Cinco De Mayo alcohol sdl.doc They agree to indemnify the City incident to the selling of alcoholic Celebration. of Denton against any liability beverages at the Cinco De Mayo SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~Jr~h day of ~,,~~ , 2008. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY B ~ .~~ ~ . ~~~ PE Y R. McNEILL, MAYOR Page 2 of 2 ,. ... s:bm documcn[sbontracts~08kinco de mayo conuactdoc CIVIC CENTER/QUAKERTOWN PARK AGREEMENT FOR THE CINCO DE MAYO CELEBRATION STATF, OF TEXAS COUNTY OF DENTON This Agreement, made this ~J~~`Z day of , 2008, by and between the City of Denton, a municipal corporation, hereinafter referred to as the "CITY" and Valentin Carmona doing business as LA MEXICANA RESTAURANT (called "LA MEXICANA"). WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE I GENERAL The City grants to LA MEXICANA the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter set forth, for the Cinco De Mayo celebration on May 3, 2008, to be held at the Civic Center/Quakertovvn Pazk. Attached hereto and made a part hereof by is a copy of the resolution passed by the City Council of Denton, Texas authorizing this privilege. This privilege does not extend beyond the date of the Cinco De Mayo celebration set for the yeaz 2008. ARTICLE 2 SCOPE OF SERVICES LA MEXICANA in order to exercise the privilege to sell alcoholic beverages must perform the following: A. - LA MEXICANA shall be solely responsible for the rental and payment for any booth space necessary for the sale of alcoholic beverages at the Cinco De Mayo Celebration. B. • LA MEXICANA shall be solely responsible to obtain any temporary license and permit necessary for the selling of alcoholic beverages at the Cinco De Mayo Celebration. C. - LA MEXICANA shall be solely responsible for the obtaining and paying for any security necessary for their sale of alcoholic beverages at the Cinco De Mayo Celebration. LA MEXICANA's failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the Cinco De Mayo Celebration. ARTICLE 3 LOCAL RULES AND REGULATION - LA MEXICANA agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Denton Civic Center Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. LA MEXICANA shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. LA MEXICANA will exercise reasonable care and due diligence in their sale of alcoholic beverages at the Cisco De Mayo Celebration. ARTICLE 4 INDEMNITY AGREEMENT LA MEXICANA shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the CffY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of LA MEXICANA or its officers, shareholders, agents, or employees in the execution, operation,, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone. not a party to this Agreement, including the defense of governmental immunity, which defenses azc hereby expressly reserved. ARTICLE 5 INSURANCE ` During the performance of the Agreement, LA MEXICANA shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not Icss than $100,000 in the aggregate. B. Liquor/Dram Shop Liability in the amount of $25Q000 per occurrence for any event occurring on City-owned property where alcohol will be provided or served. Cisco De Mayo Celebration Agreement -Page 2 C. ^ LA MEXICANA shall furnish insurance certificates or insurance policies at the CITY'S request to evidence such wverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without written notice to the CITY and LA MEXICANA. In such event, LA MEXICANA shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To LA MEXICANA: LA MEXICANA RESTAURANT Valentin Carmona 619 S. Locust St. Denton, Texas 76201 (940)230-7806 To CITY: CITY OF DENTON City Manager 215 E. McKinney Denton, Texas 76201 All notices shall be deemed effective upon receipt by the parry to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of five (5) pages and one (1) exhibit, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE 8 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. Cisco De Mayo Celebration Agreement-Page 3 ARTICLE 9 DISCRIMINATION PROIIIBTTED In performing the services required hereunder, LA MEXICANA shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE 10 PERSONNEL A. - LA MEXICANA represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. ARTICLE 11 ASSIGNABILITY LA MEXICANA shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless-such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits are atta hed to and ma¢e a part of this Agreement: (list exhibits) Exhibit "A" Resolution Na. ZDOB' O~'7" B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. The captions of this Agreement aze for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. Cinco De Mayo Celebration Agreement -Page 4 IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and LA MEXICANA has executed this Agr emenl through its duly authorized undersigned officer on this the J~f day of _-~'n~~ ' 2008. CITY OF DENTON, TEXAS i GEORGE C. CAMPBEL ,CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY~~~ LA MEXICANA j/ BY: ~ ~ VAL CARMONA WITNESS: BY: Cinco De Mayo Celebration Agreement -Page 5 S:\Our Documents\Resolu[ions\08\Cinco De Mayo alcohol sc EXHIBIT A RESOLUTION NO. .2~0 - A .RESOLUTION ALLOWING LA MEXICANA RESTAURANT TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY ~ 3, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Park and through the Pazk and Recreations Department co-sponsors a Cinco De Mayo Celebration at the Quakertown Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, Valentin Carmona, doing business as La Mexicana Restaurant (called "La, Mexicana"), has requested that they be the sole participant allowed to sell alcoholic beverages at this yeaz's Cinco De Mayo Celebration on May 3, 2008; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that La Mexicana be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION L La Mexicana shall be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration on May 3, 2008 at the Quakertown Park upon the following conditions: ]. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00; 4. Liquor/Dram Shop Liability in the amount of $250,000 per occurrence for any event occun•ing on City-owned property where a]cohol will be provided or served; S:\Our DocumenLS\Resolutions\08\Cinco De Mayo alcohol sell.doc 5. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Cinco De Mayo Celebration. SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /`~~ ~/Z day of ~~,~/J~(~ , 2008. PE Y R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY ~~ Page 2 of 2 RESOLUTION S:\Our Documents\Rcsolutions\OSWrts & Jazz Fcs[ival Res.doc RESOLUTION NO. ZOO -Ql,~j A RESOLUTION ALLOWING ROY METZLER'S FOOD & BEVERAGE TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE DENTON ARTS & JAZZ FESTIVAL APRIL 25-27, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Pazk and through the City of Denton co-sponsors the Denton Arts & Jazz Festival at the Quakertown Park; WHEREAS, the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, Roy Metzler's Food & Beverage has requested that they be sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, the Parks, Recreation and Beautification Board has recommended that Roy Metzler's Food & Beverage be the sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Roy Metzler's Food & Beverage shall be the sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival on April 25-27, 2008 at the Quakertown Park upon the following conditions: 1. They shall be responsible for rental of any booth space necessary; 2. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 3. They shall provide the security necessary for the sale of alcoholic beverages; 4. They shall provide general comprehensive liability insurance from a responsible cattier, with the City as an additional insured, in the amount of $500,000.00. Agrees to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Denton Arts & Jazz Festival. SECTION 2. The City Council authorizes rescinding of the prior contract authorized by Resolution No. R2007-010 passed by the City Council on April 17, 2007. SECTION 3. The City Manager or his designee is authorized to execute an agreement in conformity with this resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /5t~ day of , 2008. • `~~ ~4%~ PE R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY c:~documo-t~slclemmoVoealrl\tempbepgrpwtise~arh andjau f®d~ml eontracLdoc CIVIC CENTER AGREEMENT WI'CH ROY METZLER'S FOOD & BEVERAGE STATE OF TEXAS COUNTY OF DENTON § This Ageement, made this l5 ~ day of a~~ , 2008, by and between the City of Denton, a municipal corporation, hereinafter referred to as the "CITY" and Roy. Metzler's Food & Beverage, hereinafter referred to as "METZLER'S". WTTNESSETH, that in consideration of the covenants and ageements herein contained, the parties hereto do mutually agee as follows: ARTICLE 1 GENERAL The City grants to METZLER'S the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter sel forth, for the Denton Ar[s and Jazz Festival celebration on Apri125-27, 2008, to be held at the Quakertown Pazk. Attached hereto and made a part hereof by is a copy of the resolution passed by the City Council of Denton, Texas authorizing this privilege. ARTICLE 2 SCOPE OF SERVICES METZLER'S in order to exercise the privilege to sell alcoholic beverages must perform the following: A. METZLER'S shall be solely responsible for the rental and payment for any booth space necessary for the sale of alcoholic beverages at the Denton Arts and Jana Festival. B. METZLER'S shall be solely responsible to obtain any temporary license and permit necessary for the. selling of alcoholic beverages at the Denton Arts and Jazz Festival. C. METZLER'S shall be solely responsible for the obtaining and paying for any security necessary for their sale of alwholic beverages at the Denton Arts and Jazz Festival. METZLER'S failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the Denton Arts and Jazz Festiva]. ARTICLE 3 LOCAL RULES AND REGULATION METZLER'S agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Denton Civic Center Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. METZLER'S shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. METZLER'S will exercise reasonable care ahd due diligence in their sale of alcoholic beverages at the Denton Arts and Jazz Festival ARTICLE 4 INDEMNITY AGREEMENT METZLER'S shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of METZLER'S or its officers, shazeholders, agents,. or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be constmed to create a liability to any person who is not a party to this Ageement, and nothing herein shall waive any of the parties' defenses, both at .law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE 5 INSURANCE During the performance of the Ageement, METZLER'S shall maintain the- following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any- successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less .than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not less than $]00,000 in the aggregate. B. METZLER'S shall finnish insurance certificates or insurance policies at the CITY'S request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance Denton Arts and Jazz Festival Celebration Agreement -Page 2 shall not be canceled or modified without written notice to the CITY and METZLER'S In such event, METZLER'S shall, prior to the effective date of the change or cancellation, serve substitute policies famishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: ROY METZLER'S FOOD & BEVERAGE CITY OF DENTON: P.O. Box 1545 City Manager. Denton, Texas 76201 215 E. McKinney (940) 591-1652 Denton, Texas 76201 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of-five (5) pages and ~ exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof ARTICLE 8 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. in such event; the parties shall reform this Agreement to replace such stricken provision with a valid' and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. Denton Arts and Jazz Festival Celebration Agreement -Page 3 ARTICLE 9 DISCRIMINATION PRA In performing the services required hereunder, METZLER'S shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE 10 PERSONNEL METZLER'S represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. ARTICLE 11 ASSIGNABILITY METZLER'S shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. ARTICLE 12 MODIFICATION No waiver or modification of this Ageement or of any covenant, condition, or limitation hercin contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits aze attached to and made a part of this Agreement: Exhibit "A" Resolution No. ~, 2°~`J B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. The captions of this Agreement aze for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. Denton Arts and Jazz Festival Celebration Agreement -Page 4 IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executcd by its duly authorized City Manager; and ROY METZLER'S FOOD & BEVERAG has executed this Agreement through its duly authorized undersigned officer on this the f day of , 2008. CITY OF DENTON, TEXAS ~~_ t~--~ GEO( R-~ E CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ROY METZLE~,'S FQOD & BEVERAGE BY: WI1NE S: ~~/ Denton Arts and Jazz Festival Celebration Agreement -Page 5 EXHIBIT A S:\Our DocumentsUtesolutions\O8\Arts & Jaa Fe,~~~a~-..o,:aoc - RESOLUTION NO. ~(Jl/' -Q/,`] A RESOLUTION ALLOWING ROY METZLER'S FOOD & BEVERAGE TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE DENTON ARTS & JAZZ FESTIVAL. APRIL 25-27, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTNE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Park and through the City of Denton co-sponsors the Denton Arts & Jazz Festival at the Quakertown Park; WHEREAS, the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, Roy Metzler's Food & Beverage has requested that they be sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, the Parks, Recreation and Beautification Board has recommended that Roy Metzler's Food & Beverage be the sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Roy Metzler's Food & Beverage shall be the sole participant allowed to sell alcoholic beverages at the Denton Arts & Jazz Festival on April 25-27, 2008 at the Quakertown Park upon the following conditions: 1. They shall be responsible for rental of any booth space necessary; 2. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 3. They shall provide the security necessary for the sale of alcoholic beverages; 4. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. 5. Agrees to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Denton Arts & Jazz Festival. SECTION 2. The City Council authorizes rescinding of the prior contract authorized by Resolution No. R2007-010 passed by the City Council on April 17, 2007. SECTION 3. The City Manager or his designee is authorized to execute an agreement in conformity with this resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ f/! day of ~ , 2008. PE R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ` ~ ~ RESOLUTION ' s:\aur documents\resolu[ions\OS\35e resolution.doc RESOLUTION NO. ~ ' D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, REQUESTING THAT THE TEXAS DEPARTMENT OF TRANSPORTATION (TxDOT) AND THE NORTH TEXAS TOLLWAY AUTHORITY (NTTA) WAIVE THE REQUIREMENT TO DEVELOP A MARKET VALUATION FOR INTERSTATE 35 EAST AS ALLOWED BY SENATE BILL 792, FURTHER REQUESTING THAT NTTA WAIVE ITS RIGHT TO DEVELOP THE PROJECT AND SUPPORT TxDOT'S DEVELOPMENT OF THE IH35E PROJECT FROM INTERSTATE HIGHWAY 635 TO US HIGHWAY 380, AND ACKNOWLEDGE THAT NTTA'S PRIMARY ROLE WILL BE TO PROVIDE THE ASSOCIATED TOLL OPERATIONS AT A REASONABLE COST. WHEREAS, Interstate 35 East (IH35E) is a major north south transportation route in Denton County that dramatically impacts mobility, air quality and economic vitality of the entire North Central Texas region; and WHEREAS, the City of Denton supported the tolling of SH 121 predicated on funding and development of IH35E from IH635 to US 380 in a "near time frame"; and WHEREAS, the SH 121Memorandum of Understanding executed by Denton County, TxDOT, the North Central Texas Council of Governments (NCTCOG), the City of Grapevine, the City of Coppell, the City of Lewisville, the City of Carrollton, and the City of The Colony affirmed the Region's intent to fund and open IH35E to traffic by 2011; and WHEREAS, Denton County has funded more than $250 million in "on-system" roadway improvements, through its road bond program, to roadways connecting to IH35E; and WHEREAS, the success of the $250 million in "on-system" improvements by Denton County are directly impacted by the timely development of IH35E; and WHEREAS, Denton County, TxDOT and the NCTCOG are scheduled to make recommendations related to the expenditure of SH 121 Regional Toll Revenue funs in April 2008; and WHEREAS, in March 2008 Denton County initiated the development of a new bond program for the November 2008 election; and • ~s:\our documents\resolu[ions\O8\35e resolution.doc WHEREAS, the City of Denton believes that the region's best interests are served if IH35E is developed and funded in a manner that permits construction from IH635 to US 380 beginning no later than 2010; and WHEREAS, any delay to the development of IH35E and its managed lanes due to the Market Valuation process outlined in Senate Bi11792 will dramatically increase the ultimate cost of IH35E and cause increased congestion, thereby negatively impacting the air quality, economy and overall quality of life for residents in Denton County and North Central Texas; and WHEREAS, Sec. 228.0111 of SB 792 states in part that the "department and local toll project entity may after agreement on term as and conditions agree to waive the requirement to develop a market valuation under this section", NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas, does hereby request that the Texas Department of Transportation and the North Texas Tollway Authority waive the requirement to develop a market valuation for IH35E as allowed by SB 792 under the Terms and Conditions that the corridor be developed utilizing the Regional Transportation Council's Managed Lanes Policy. Further we request that the North Texas Tollway Authority waive their right to develop the project, strongly support TxDOT's development of the IH35E Managed Lanes Project from IH635 to US 380 and acknowledge that NTTA's primary role will be to provide the associated toll operations at a reasonable cost. SECTION 2. This resolution shall be transmitted to the NCTCOG, NTTA and TxDOT Dallas District immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of-~d`P~' 2008. ~ /-~~.~1 PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY ~s:\aur documents\resolutions\OS\35e resolution.doc APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION RESOLUTION N0. R2008- Ol7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPROVING THE EXECUTION BY THE CITY OF THE "AIR NORTH TEXAS PARTNER AGREEMENT" OF THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS AND THE REGIONAL TRANSPORTATION COUNCIL, WHEREIN THE CITY OF DENTON SUPPORTS THE PRINCII'LES, GOALS, ACTIVITIES AND RECOMMENDATIONS OF THE PARTNERSHIP; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Regional Transporting Council, comprised primarily of local government elected officials, the regional transportation body that is associated with the North Central Texas Council of Governments (NCTCOG) has been and continues to be a forum for cooperative decisions on transportation; and WHEREAS, the City of Denton, Texas is a Texas Home-Rule City and a Municipal Corporation that supports the Regional Transportation Council and the goals and mission statements of the "Air North Texas" campaign; and WHEREAS, the Dallas-Fort Worth area is a federally designated nonattainment area for the pollutant ozone and air quality impacts the public and economic health of the entire region; and WHEREAS, the primary goal of air quality management is the protection of public health and welfare, reducing and improving the health impacts caused predominately by mobile-source emissions with the assistance of partnering entities while preserving the economic vitality of the region; and WHEREAS, the North Central Texas Council of Governments has formed alliances with public and private entities in the region to assist and support in the development of the Air North Texas campaign elements, and the dissemination of information; and WHEREAS, the "Air North Texas" campaign is a collaborative intuitive involving partners from public, private and non-profit entities that will promote a consistent regional message; and WHEREAS, the "Air North Texas" campaign is committed to increasing air quality awarehess to citizens and residents in the North Texas region; and WHEREAS, the City of Denton recognizes that this Agreement is anon-binding mutual expression of cooperation to support the principles stated in the "Air North Texas Partner Agreement;" and this Agreement is not intended to confer or create a financial obligation, or expectation of payment to or from an Air North Texas Partner, or the North Central Council of Governments, or the Regional Transportation Council WHEREAS, the City of Denton, Texas pledges to acknowledge and support the principles, goals, activities and recommendations of "Air North Texas," and hereby adopts and executes the "Air North Texas Partner Agreement." WHEREAS, the City of Denton City Council Committee on the Environment, at its regularly called meeting of April 7, 2008 has recommended approval of this Agreement; and WHEREAS, the City Council of the City of Denton, Texas is of the opinion, in the interest of its citizens, that it should enter into the above-referenced Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby authorizes its Mayor, or his designee, to enter into the attached "Air North Texas Partner Agreement"; and supports the principles, goals, activities and recommendations contained in said Agreement. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the !~~ day of , 2008. PE R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ,~i14'./ ~~i~ ,~,~1'/~~~- APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By:~~~~ ~~!~ u ~. Page 2 of 2 northtezas AIR NORTH TEXAS PARTNER AGREEMENT WHEREAS, the Regional Transportation Council, comprised primarily of local elected officials, is the regional transportation policy body associated with the North Central Texas Council of Governments, and has been and continues to be a forum for cooperative decisions on transportation; and, WHEREAS, the City of Denton supports the Regional T ransportation Counci I and the goals and mission statements of the Air North Texas campaign; and, WHEREAS, the Dallas-Fort Worth area is a federally designated nonattainment area for the pollutant ozone and air quality impacts the public and economic health of the entire region; and, WHEREAS, the primary goal of air quality management is the protection of public health and welfare, reducing and improving the health impacts caused predominantly by mobile-source emissions with the assistance of partnering entities while preserving the economic vitality of the region; and, WHEREAS, the North Central Texas Council of Governments has formed alliances with public and private entities in the region to assist and support in the development of the Air North Texas campaign elements, and the dissemination of information; and, WHEREAS, the Air North Texas campaign is a collaborative initiative involving partners from public, private and non-profit entities that will promote a consistent regional message; and, WHEREAS, the Air North Texas campaign is committed to increasing air quality awareness to citizens and residents in the North Texas region; and, AIR NORTH TEXAS PARTNERS PLEDGE TO ACKOWLEDGE AND ACCOMPLISH THE FOLLOWING, AS IT APPLIES OR AS APPROPRIATE: Section 1. Air North Texas Goal and Mission Statement 1.1 A voluntary effort and creative platform to develop a regional brand to generate increased awareness that will foster behavioral changes to improve air quality 1.2 An all-inclusive branding effort that will serve to bridge existing and developing air quality programs into one comprehensive and mutually complementary initiative Section 2. Air North Texas Support to Partners 2.1 Promotion and placement of partner logos on www.airnorthtexas.org 2.2 Air North Texas partners will be promoted and recognized throughout the run of the campaign as a regional partner, generating consistent brand visibility 2.3 Sample press releases are available for download online 2.4 Advertising collateral and campaign materials are available for download online 2.5 Partner recruitment tools will be provided to aid in the process of soliciting new and potential members 2.6 Shared results generated from the annual performance evaluation process 2.7 Shared results generated from audience survey Section 3. Partners Supporf to Air North Texas (where applicable and as appropriate) 3.1 Branding 3.1.1 Placement of the Air North Texas brand/logo on relevant printed collateral for air quality efforts and initiatives, or where applicable 3.1.2 Provide a link to the official Air North Texas campaign Web site on your Web site. Air North Texas Web site buttons are available for download or the URL can be listed that shows the link: www.ai rnorthtexas.o rp 3.2 Implementation 3.2.1 Air Quality Education and Outreach a. Plan, host and/or participate in one or more public event to generate awareness of the Air North Texas campaign b. Plan, host and/or support one or more press, promotional, or partner recognition event for media or other stakeholders c. Recruit and encourage general public audience to sign up as an Air North Texas member to promote clean air 3.2.2 Shared Resources (non-monetary) a. Assist new and existing partners by providing guidance and resources needed to fulfill partner commitments (resources may be in the form of promotional/educational materials, marketing collateral, and services) b. Provide discounted or complementary services to Air North Texas partners for article placement, advertising, conference registrations and/or other events that promote the partnership and/or campaign 3.2.3 Media Relations a. Issue one or more press release(s) announcing your membership and participation in the Air North Texas campaign. Sample press releases and boilerplate information are available for download on our Web site b. Each quarter, publicize your organization's involvement with the Air North Texas campaign. Sample advertising collateral are available for download from the Air North Texas Web site 3.2.4 Regional Partner Recruitment and Solicitation a. Inform your members or constituents about the partnership and promote the benefits of being involved in the regional initiative b. Publish articles or other informational materials endorsing the partnership c. Identify and provide opportunities for Air North Texas partners to communicate with your members or constituents about the Air North Texas campaign and the partnership d. Recruit new Air North Texas partner(s) to assist in the planning and implementation of this regional air quality collaborative effort 3.2.5 Progress Reporting /Annual Recognition a. Provide an annual status report on implemented tasks b. Share and exchange information with Air North Texas partners highlights and successes of your promotional efforts c. Qualify and/or participate in annual recognition event for partners and members of the Air North Texas community d. Distribute a survey about the Air North Texas campaign's overall performance to your member and/or constituents This partner agreement is anon-binding mutual expression of cooperation to support the principles outlined in section 1. This agreement is not intended to confer or create a financial obligation or expectation of payment to or from an Air North Texas Partner, the North Central Texas Council of Governments, or the Regional Transportation Council. Execution Date~04/15//200n8~D ~~ ~, , L~/'~~/ y Name Perry R. McNeill Title Mayor Entity City of Denton RESOLUTION .- s:\our documenis\resolutions\08\solid waste grant authorisation-jan 2008.doc RESOLUTION NO. R2008- Q/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE FILING OF A PROJECT APPLICATION WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR A REGIONAL SOLID WASTE PROGRAM - LOCAL IMPLEMENTATION PROJECT; DELEGATING AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNATE, TO ACT ON BEHALF OF THE CITY IN ALL MATTERS THAT ARE RELATED TO THIS PROJECT APPLICATION, PLEDGING THAT IF FUNDING FOR THIS PROJECT IS RECEIVED, THE CITY OF DENTON, TEXAS WILL COMPLY WITH ALL PROJECT REQUIREMENTS OF THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY, AND THE STATE OF TEXAS, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the North Central Council of Governments (NCTCOG~ has been directed by the Texas Commission on Environmental Quality (°fCEQ~ to administer solid waste project funds for the implementation of the NCTCOG adopted goal`°fime to Recycld; and WHEREAS, the City of Denton, Texas is qualified to apply for project funds under the `FY 2008 Request for Applications' ;and WHEREAS, the City Council of the City of Denton has expressed their support and interest regarding the above-referenced solid waste project; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby delegates and authorizes the City Manager, or his designate, to complete the application and send in the application to request project funding under the North Central Texas Council of Government `Request for Application~'for the implementation of the Regional Solid Waste Management Plan; and the City Council hereby further empowers and authorizes the City Manager, or his designee, to act on the behalf of the City in all matters that aze related to the project application, and any subsequent project contract(s) that may result therefrom. SECTION 2. Should the project be funded, then the City of Denton, Texas shall comply with the requirements of the North Central Texas Council of Governments, the Texas Commission on Environmental Quality, and the State of Texas. SECTION 3. The project funds and any project-funded equipment and facilities will be used solely for the purposes for which they aze intended under the Project. SECTION 4. The activities of the city shall comply with and support the adopted local and regional solid waste management plans adopted for the geographical area in which the activities aze performed. ~` t s:\our documcnts\resolutions\OS\solid waste grant authorin[ion-jan 2008.doc SECTION 5. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of .2008. c . y PE R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO D AS LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 2 RESOLUTION • s':\our ducumentskesolutions\08\2008 action plan resolutioudoc RESOLUTION NO. r7s ~IO - O A RESOLUTION BY THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT A 2008 ACTION PLAN FOR HOUSING AND COMMUNITY DEVELOPMENT WITH APPROPRIATE CERTIFICATIONS, AS AUTHORIZED AND REQUIRED BY THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED AND THE NATIONAL AFFORDABLE HOUSING ACT OF 1990, AS AMENDED; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is concerned with the development of viable urban communities, including decent housing, a suitable living environment and expanded economic opportunities; and WHEREAS, the City of Denton, Texas, has a special concern for persons of low and moderate income; and WHEREAS, the City of Denton, Texas, as a CDBG entitlement City and a HOME participating jurisdiction, has prepared, through a citizen participation process, a program for utilizing its 2008-year entitlement funds, program income and reallocated funds in the approximate amount of $1,800,000; and WHEREAS, citizen participation requirements, including the holding of public hearings; have been met; and WHEREAS, the Community Development Act of 1974 and the National Affordable Housing Act of 1990 require an application and appropriate certifications included in the Consolidated Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, authorizes the City Manager to sign and submit to the Department of Housing and Urban Development a 2008 Action Plan and appropriate certifications for entitlement funds under the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended. SECTION 2. The City Council of the City of Denton, Texas, authorizes the Community Development Administrator to handle all fiscal and administrative matters related to the application, the Action Plan and the certifications. SECTION 3. The City Secretary is hereby authorized to furnish copies of this resolution to all interested parties. S:AOur Documents\ResolutionsV03VCnmm. Dev Action Nlan Res.dnc. 2003 SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the~J"="day of , 2008 PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Q,--. APPROVED AS TO LEGAL FORM: EDWIN SNYDER, CITY ATTORNEY BYi/%~~~f ~/~`E~"~ RESOLUTION s:Anur documen[skesolulionsVOS~notice oC iNenLdoc RESOLUTION NO. ?tJ ~ ~ Q A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AUTHORIZING ISSUANCE OF A NOTICE OF INTENT THAT THE CITY OF DENTON INTENDS TO ESTABLISH A TAX INCREMENT FINANCING REINVESTMENT ZONE, PURSUANT TO THE TAX INCREMENT FINANCING ACT, TEXAS TAX CODE ANN., CHAPTER 311, FOR THE CITY OF DENTON, TEXAS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton intends to' establish a Tax Increment Financing Reinvestment Zone for the City of Denton pursuant to the Tax Increment Financing Act ("Act") for the purpose of encouraging development; and WHEREAS, the boundaries of the Tax Increment Financing Reinvestment Zone No. 1 (TIF No. 1), are described in the attachment designated as Exhibit "A" and shown on the map attached hereto as Exhibit "B", said area for TIF No. 1 being within the city limits of the City of Denton; and WHEREAS, Section 31 ].003 of the Act provides that not less than the 60`~ day before the date of the Public Hearing, the governing body of the municipality must notify iu writing the governing body of each taxing unit that levies real property taxes in the proposed Zone that the municipality intends to establish a Tax Increment Financing Reinvestment Zone; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Manager is hereby directed to send all taxing entities a copy of the Notice of Intent to create Tax Increment Financing Reinvestment Zone No. 1 (TIF No. l). SECTION 2. The Notice shall include all descriptions and other documents as required by State law. SECTION 3. This resolution shall be effectiv~e/immediately upon its passage. PASSED AND APPROVED this the c32_" day of ~Ei , 2008. Q-M 4.YyIF~~..~ PERRY R. McNEILL, MAYOR s.Aour documentsUesolulionsVOS~nolice of in~en Ldoc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ~ ' Page 2 EXHIBIT A C[TY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1 BOUNDARY DESCRIPTION Beginning at the southwest corner of the ROW intersection of Congress and Carroll Blvd., the POINT OF BEGINNING; THENCE, west along the north property line of Carroll Park Addition, Block 3, Lot 8 to is northwest corner; THENCE, south along the west property lines of Carroll park Addition, Block 3, Lot 8 and Lot 16, continuing south across Parkway and south along the west property lines of Carroll Park Addition, Block 2, Lot 8 and Lot 1, continuing south across E. McKinney Street and south along the west property line of Carroll Park Addition, Block I, Lot 1 to the north property line of Town Hill Addition Block 1, Lot 2; THENCE, west along the north property line of Town Hill Addition, Block 1, Lot 2 to its northwest corner; THENCE, south along the west property line of Town Hill Addition, Block I, Lot 2 and Oak Carroll Addition Block A, Lot 1, continuing across W. Oak to the north property line of Saunders Addition, Lot 1 A; THENCE, west along the north property line of Saunders Addition, Lot 1 A to is northwest comer; THENCE, south along the west property lines of Saunders Addition, Lot 1 A and Lot 1 B, continuing across W. Hickory to the south ROW of W. Hickory; THENCE, east along the south ROW of W. Hickory to the northwest comer of William Neill, Tract 110; THENCE, south along the west property line of William Neill, Tract 1 10 to the north property line of William Loving, Tract 37; THENCE, west along the north property line of William Loving, Tract 37 to its northwest corner; THENCE, south along the west property line of William Loving Tract 37, continuing across Mulberry to the south ROW of Mulberry; THENCE, east along the south ROW of Mulberry to the northwest corner of William Loving, Tract 68; ' THENCE, south along the west property lines of William Loving, Tract 68, Tract 69 and Tract 70 to the southwest comer of Tract 70; THENCE, east along the south property line of William Loving, Tract 70 to the northwest corner of William Loving, Tract 72; THENCE, south along the west property line of William Loving, Tract 72, continuing south across Sycamore and south along the west property line of H. Cisco, Tract 139 thru 147 to the north property line of Carroll Blvd. Addition, Block A, Lot l; THENCE, west along the north property line of Carroll Blvd. Addition, Block A, Lot 1 to its northwest comer; THENCE, south along the west property line of Carroll Blvd. Addition, Block A, Lot 1 to the north property line of William Loving, Tract 77; THENCE, west along the north property line of William Loving, Tract 77 and continuing along the north property line of Jester Addition, Lot A-1 to its northwest corner; THENCE, south along the west property line of Jester Addition, Lot A- I to the north property line of William Loving, Tract 79; THENCE, west along the north property line of William Loving, Tract 79 to its northwest comer; THENCE, south along the west property line of William Loving, Tract 79 and continuing south along the west property line of William Loving, Tract 89 to the south ROW of Highland; THENCE, east along the south ROW of Highland to the west ROW of Carroll Blvd; THENCE, southeasterly along the west ROW of Carroll Blvd. to the south ROW of Eagle Drive and the northeast corner of A. Hill, Tract 216; ' THENCE, south along the west property line of A. Hill, Tract 216 and continuing south along the west property line of A. Hill, Tract 220 to its southwest corner and continuing across Collins to its south ROW; THENCE, east along the south ROW of Collins continuing across Fort Worth Drive to its east ROW; THENCE, northeasterly along the east ROW of Fort Worth Drive to the southwest comer of Sanger Brothers Addition, Block 1, Lot 1 (Part); THENCE, east along the south property line of Sanger Brothers Addition, Block I, Lot 1 (Part) continuing across North Locust Street to its east ROW; THENCE, north along the east ROW of North Locust Street to the southwest comer of A. Hill, Tract 192; THENCE, east along the south property line of A. Hill, Tract 192 to the west property line of A. Hill, Tract 190, 191; THENCE, south along the west property line of A. Hill, Tract 190, 191 to its southwest corner; THENCE, east along the south property lines of A. Hill, Tract 190, 191 and A. Hill, Tract 188 continuing east across North and South Locust Street to its east ROW; THENCE, north along the east ROW of North and South Locust Street to the south ROW of Eagle Drive; THENCE, east along the south ROW of Eagle Drive continuing across the Union Pacific rail line to its east ROW; THENCE, northeast along the east ROW of the Union Pacific rail line across the Union Pacific spur and continuing across Robertson to its north ROW and the southeast comer of H. Cisco, Tract 134; THENCE, northeasterly along the east property line of H. Cisco, Tract 134 to the south ROW of East Prairie; THENCE, east along the south RO W of East Prairie to a point directly south of the southeast comer of Jasper Addition, Block l Lot 1; THENCE, north across East Prairie to the southeast corner of Jasper Addition, Block 1, Lot l; THENCE, north along the east property lines of Jasper Addition, Block 1, Lot 1, H. Cisco, Tract 139 thru 147 and William Loving, Tract 73 to the south ROW of Sycamore; THENCE, east along the south ROW of Sycamore to a point directly south of the southeast comer of H. Cisco, Tract 21; THENCE, north across Sycamore to the southeast corner of H. Cisco, Tract 21; THENCE, north along the east property lines of H. Cisco, Tract 21, H. Cisco, Tract 22, 23 and H. Cisco Tract, Tract 29 to the south property line of a Fred Hill Addition drainage and utility easement; THENCE, east and north along the south and east property line of a Fred Hill Addition drainage and utility easement to the southeast corner of Fred Hill Addition, Block A, Lot I; THENCE, north and west along the east and north property line of Fred Hill Addition, Block A, Lot 1 to the southeast corner of H. Cisco, Tract 31; THENCE, north along the east property line of H. Cisco, Tract 31 and continuing north across East Hickory and north along the east ROW of Bradshaw and continuing north across East McKinney to the southeast corner of College View, Block 5, Lot 14; THENCE, north along the east property line of College View, Block 5, Lot 14 to its northeast corner; THENCE, west along the north property line of College View, Block 5, Lot 14 continuing across Bradshaw and along the north property line of College View, Block 7, Lot 1,2 (west part each) to the east property line of College View, Block 7, Lot 1,2; THENCE, north, west and south along the property line of College View, Block 7, Lot 1,2 to the northeast corner of BBB &CRR, Tract 238, 242, 245; THENCE, west and south along the north and west property line of BBB &CRR, Tract 238, 242, 245 to the north property line of BBB &CRR, Tract 239; THENCE, west, south, west, south west and south along the irregular property line of BBB &CRR, Tract 239 to a point directly opposite the northeast corner of BBB &CRR, Tract 280; THENCE, directly across Frame Street to the said northeast corner of BBB &CRR, Tract 280; THENCE, west along the north property line of BBB and CRR, Tract 280 to the west property line of Railroad Avenue Addition, Block I, Lot 2; THENCE, north along the east property line of Railroad Avenue Addition, Block 1, Lot 2 to its intersection with the east ROW of Railroad Avenue; THENCE, northeasterly along the east ROW of Railroad Avenue to a point directly opposite the north ROW of Withers; THENCE, west across Railroad Avenue and continuing west along the north ROW of Withers to the west ROW of Oakland THENCE, south along the west ROW of Oakland to the north ROW of Congress; THENCE, west along the north ROW of Congress to the west ROW of Carroll Blvd.; THENCE, south across Congress to the southwest corner of the ROW intersection of Congress and Carroll Blvd. and the POINT OF BEGINNING, and containing a total of approximately 443.86 acres. Exhibit B Proposed TIF Boundaries 4/30/08 -Bell ~: c -i u, cn ~ ~ ~ O ~ ~ z ~ n c~ D ~ ~ cn r cn~z ~ ~ r ~ Z T ~ T o ~ ~ ~ ~ v W ~ co m m a C. m RESOLUTION RESOLUTION N0~008- Dom? / A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, STAYING THE ENFORCEMENT OF THE $75.00 ACCESS FEE IMPOSED BY ORDINANCE NO. 2007-211 (THE SOLID WASTE RATE ORDINANCE), SCHEDULE SWC (COMMERCIAL SOLID WASTE COLLECTION SERVICES), SECTION L, FOURTH SUBPARAGRAPH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on September 25, 2008 the City Council adopted the Solid Waste Rate Ordinance, being Ordinance No. 2007-211 which set forth in detail the rates, fees, and charges that are required of ratepayers; and WHEREAS, in Schedule SWC (Commercial Solid Waste Collection Services), in Section L, Fourth Subparagraph of said Ordinance there is the following provision: "An access fee will be charged for containers that present accessibility problems, and/or additional services or time. Containers that are inaccessible at the time of collection will be charged an inaccessible fee of 590.00 for roll-off containers and $75.00 for all other containers." WHEREAS, at issue is the language "and $75.00 for all other containers." The Denton Property Maintenance Committee is currently considering, among other things, the matter of the policy underlying, and the imposition of the $75.00 fee in the above stated Ordinance; and the Denton Public Utilities Board has agreed to temporarily suspend this fee pending review and resolution of this matter, and accordingly has not made its final recommendation to the City Council regarding this provision; and WHEREAS, in the interests of the citizens of the City of Denton, the City Council hereby resolves that the enforcement of the $75.00 fee provided hereinabove should be stayed, pending further resolution by the City Council of the policy underlying the fee and the imposition of the fee; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton Ordinance No. 2007-211 (the "Solid Waste Rate Ordinance") shall be, and it is hereby stayed, in part, solely as to the provision "and $75.00 for all other containers" as stated in Schedule SWC, Paragraph L, Fourth Subparagraph, pending further consideration of this matter. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 3Q~ day of June, 2008. ~~~~ PER R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: RESOLUTION s:\our dowmenls\resolutions\08\911 nominate membecdoc RESOLUTION NO. pf 0~,~'Qof~i A RESOLUTION NOMINATING. A MEMBER TO THE BOARD OF MANAGERS OF THE DENCO AREA 9-1-1 DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office of Harlan ,lefferson, Town of Flower Mound, a member of the Board of Managers of the Denco 9-1-1 District, will expire on September 30, 2008; and WHEREAS, Section 772.306(c)(2) of the Health and Safety Code (V.A.C.S.) provides that two voting members of the Board of Managers of an Emergency Communication District shall be appointed jointly by participating municipalities located in whole or in part in the District; and WHEREAS, the City of Denton, Texas wishes to nominate a member to said Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas hereby nominates Harlan Jefferson as a member to the Board of Managers for the Denco Area 9-1-1 Emergency Communication District of Denton County for atwo-year term to commence October 1, 2008. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~3"_"`~ day of , 2008. ~~~c~~ PERRY R. McNEILL, MAYOR ATTEST: JENN~IFE^R WALTERS, C~IeTY SECRETARY BY: V1k1 P(~N1 ~ 0 _ I I)V'1 ~ ~A .n APPROVED AS "FO LEGAL FO~ EDWIN M. SNYDEA; 61TY AT'fpRNEY BY: RESOLUTION s:\our documcnts4esolu[ionsl08\impac[ fee guidelines.doc RESOLUTION NO A RESOLUTION ADOPTING NEW PROGRAM GUIDELINES TO REDUCE THE AMOUNT OF PER UNIT ASSISTANCE UNDER THE IMPACT FEE INCENTIVE GRANTS PROGRAM TO PAY WATER AND WASTEWATER IMPACT FEES FOR SINGLE FAMILY AFFORDABLE HOUSING RESIDENTIAL UNITS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council passed Resolution No. 98-052 on September 15, 1998 to provide for single family equivalent grants to pay water and wastewater capital recovery fees for thirty-nine affordable housing residential units constructed within the corporate limits of the city by non-profit corporations, provided the units comply with criteria for affordability, habitability, and other requirements established by the City; and WHEREAS, the City Council passed Resolution 2000-046 on September 5, 2000 and as required by Resolution No. 98-052 reviewed the Impact Fee Incentive Grant Program for Affordable Housing and has decided to extend the Program through the 1999-2000, 2000-2001 and for future fiscal years for which funding is allocated by the City Council; and WHEREAS, the Council deems it in the public interest to continue the Impact Fee Incentive Grant Program to promote affordable housing units within the City of Denton and wishes to revise the guidelines to reduce the level of assistance to each unit and thereby increase the number of units assisted under the program; NOW, THEREFORE, THE CITY COUNCIL OF THE C[TY OF DENTON HEREBY RESOLVES: SECTION 1. The attached City of Denton Impact Fee Incentive Grant Program Guidelines and Application Information reducing the level of per unit assistance to $2,500 are hereby approved and shall replace the previous Guidelines. SECTION 2. That save and except as amended hereby, all the sections, sentences, clauses and phrases of Resolutions No. 98-052 and Resolution No. 2000-046 shall remain in full force and effect. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~"-day of , 2008. PE R. McNEILL, MAYOR s:\our documentsUesolutions108\impact (ee guidelines.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. APPROVED AS TO LEGAL FORM: EDW[N M. SNYDER, CITY ATTORNEY B Y: City of Denton Impact Fee Incentive Grant Program Guidelines and Application Information 1. Purpose The Impact Fee Incentive Grant program is established to provide non-profit developers incentives to constmct affordable housing within the City of Denton, for the following purposes: (a) To reduce the housing cost burden for low and moderate-income households; (b) To provide home ownership opportunities for low and moderate-income households; (c) To provide affordable housing for low-mod income, elderly and disabled households; (d) To expand affordable housing within the corporate limits of the City of Denton to encourage further employment, increase sales tax revenues, to expand economic development, to enhance the City's property tax base; and (e) To provide an incentive to constmct additional affordable housing units in Denton. 2. Definitions The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: • Affordable housing means owner-occupied single family homes that do not exceed City of Denton Homebuyer Assistance Program loan-to-income guidelines, or housing for low income renter households that costs less than 30% of household income. Low-income household means a household that has an annual income less than 80% of the median household income for the Dallas metropolitan area, adjusted for household size, as per the applicable federal definition or as per the findings of the United States Secretary of Housing and Urban Development, in accordance with 42 USC §12745. • Non profit corporation means the equivalent of a "not-for-profit" corporation. It means a corporation no part of the income of which is distributable to its members, directors, or officers and which meets all the requirements of Article 1396 § 1.01, et seq., the Non-Profit Corporation Act, Vemons Annotated Civil Statutes. 3. Incentive Grant Standards A. Qualified Construction 1. New owner-occupied single family housing units, and/or 2. New renter-occupied, elderly or disabled multifamily housing Revised 10/07 B. Qualified Occupants 1. Low and moderate-income households (see Attachment A), and/or 2. Low-income elderly or disabled households C. Qualified Developers Non-for-profit corporations that develop affordable housing D. Qualified Areas 1. Properties within the corporate limits of the City of Denton, and 2. Properties subject to water/wastewater impact fees E. Maximum Housing Cost 1. Price cap ofowner-occupied unit(s) tied to the annual requirements of the City of Denton's Homebuyer Assistance Program or another comparable program. 2. Price cap ofrenter-occupied units may not exceed the fair market rents established by the Denton Housing Authority (DHA), or may not exceed fair market rents established by HUD for the Dallas/Fort Worth area. F. Dwelling Unit Longevity 1. Qualified owner-occupants must maintain ownership and reside in the unit receiving the grant for a minimum period often (10) years. 2. Eligible multi-family housing units must not exceed total housing cost requirements for a period of not less than ten (10) years. G. Other Requirements 1. The affordable housing unit must be served by existing City infrastructure and services. 2. The design and the construction of the affordable housing unit must meet the criteria established by the City of Denton Community Development Division for habitability, affordability, accessibility, water conservation, and energy efficiency. 5. Availability of Incentive Grants Grants available for the encouragement of the construction of affordable housing shall be limited to a maximum of $2,500 per unit. Grants will be available on a first come, first served basis, based upon the date of submittal of an application for an impact fee exemption. 4. Grant Approval Process A. The Impact Fee Incentive Grant Program will be administered by the City's Community Development Division. Revised 10/07 B. The Community Development Division is authorized to collect any information necessary to determine compliance with the grant requirements. C. Applicants must complete the application and execute the application certification prior to consideration for an exemption(s). D. Participant Developers must execute the following documents (Attachments B, C, and D): i. Impact Fee Incentive Grant Agreement ii. Note iii. Deed of Trust F. Upon approval of the application and execution of the documents listed above, the City Manager will execute the Impact Fee Incentive Grant Agreement. The agreement will be forwarded to the Community Development Division. G. Upon execution of the Impact Fee Incentive Grant Agreement, submission of a receipt showing payment of the impact fees by the applicant developer, and completion of the approved unit, the City of Denton Community Development Administrator will initiate reimbursement of up to $2,500 to the developer. H. if [he applicant fails to finish construction of the affordable housing unit within fifteen months after certification, the Community Development Division Manager may revoke the award. IMPACT FEE INCENTIVE GRANT APPLICATION Applications will be reviewed by the Community Development Division on a first- come, first-served basis. Applicants for the Impact Fee Incentive Grant Program must submit the following information and an executed copy of the "Application Certification to: Community Development Division 601 E Hickory Street Ste B Denton, Texas, 76205 , Please ca11940-349-7235 for application assistance. Applicant Information , 1. Name, address and telephone number of the nonprofit organization 2. Name and telephone of executive director or contact person 3. List of Board of Directors members and officers including contact information. 4. Attach documentation of incorporation and 501(c)(3) nonprofit status including Articles of Incorporation, and letter from Secretary of State's Office showing corporation currently in good standing and any Revised 10/07 documentation from internal revenue service showing tax exempt, non- profit status. II. Development Information 1. Name of development 2. Location (Please provide a general location and a legal description of the property.) Attach a map showing the site. 3. Describe the current status of the project -zoning issues, property acquisition, site preparation, building plans, required permits/approvals, projected start of construction and completion dates. Attach documentation ofsite control. 4. Provide a project budget including a list of all financing sources. Attach copies of award letters or other documentation of secured financing. 5. Other: a. Number of affordable single family units b. Number of affordable multifamily units (elderly & disabled) c. Copy of building permit for project d. Copy of receipt for payment of impact fees III. Affordability Information 1. Describe how the organization will establish and enforce the required period of affordability for the unit(s). 2. What is the household income level of the project beneficiaries? 3. Describe the organization's household income verification procedures. 4. Attach a rent schedule for each affordable rental unit. 5. Attach a price schedule for each affordable owner unit. Revised 10/07 City of Denton Impact Fee Incentive Grant Program Application Certification I, the undersigned duly authorized representative of a Texas not-for-profit corporation which meets the requirements of the Texas non-profit corporation act, (the "Applicant") owner of the proposed residential development described in the attached documents, do hereby make application to the City of Denton for (amount). I do hereby and declare, certify and represent as follows: 1. The applicant intends to construct single family units to be sold to qualified homebuyers or construct and operate a unit multi-family rental residential development (the Development) to be located within the City of Denton, Texas at (address of unit) and desires that the City Provide grants of public funds to assist the Development from payment ofwater/wastewater impact fees in accordance with the Impact Fee Incentive Grant Program Guidelines. 2. The Applicant has received a copy of the Impact Fee Incentive Grant Program Guidelines with accompanying attachments, has reviewed the documents and hereby agrees to comply with all terms and provisions of the guidelines. 3. The Applicant has submitted a completed copy of the Impact Fee Incentive Grant Program Application and to the best of my knowledge, the information contained therein is true and correct. 4. The Applicant, if awarded an incentive grant, hereby agrees to execute a grant agreement (Attachment B) with the City of Denton for receipt of the grant. The Contract contains such provisions as are necessary to carry out the requirements of the Impact Fee Incentive Grant Program. 5. Before issuance of the Certification of Impact Fee Incentive Grant approval, the Applicant will execute a Note (Attachment C) payable to the City of Denton in the amount of the number of incentive grants granted times $2,500 and a Deed of Trust (Attachment D) and or restrictive covenant as required, sufficient to assure that the unit(s) receiving the incentive grant will be occupied by an eligible family with income below 80% of the median family income for the Dallas area and requiring an affordability period often years for owner-occupied housing and multifamily housing. If the unit is not occupied within 15 months of the issuance of the Certificate of Impact Fee Incentive Grant Program approval, the Applicant will not be reimbursed for the $2,500 per unit of impact fees paid on the project. Revised 10/07 Based on the foregoing, the Applicant requests that the City of Denton grant the requested exemption in accordance with the Impact Fee Incentive Grant Program Guidelines. WITNESS MY HAND THIS DAY OF APPLICANT BY: Title: Witness Date Revised 10/07 RESOLUTION S:\Our Documents\Resolulions\O8\Tx DOT Grant Resolution-AitporLdnc RESOLUTION NO. ~Q2D, 0~ 02~ A RESOLUTION, EXPRESSING ON BEHALF OF THE CITY OF DENTON, AN INTEREST [N PARTICIPATING IN A GRANT OFFER FROM THE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT) TO FUND AN AIRPORT BUSINESS PLAN RELATING TO TO THE DENTON MUNICIPAL AIRPORT; DEMONSTRATING THAT THE CITY OF DENTON HAS REQUISITE MATCHING FUNDS 1N THE AMOUNT OF $50,000.00; CONFIRMING AGREEMENT TO PAY A PORTION OF THE TOTAL PROJECT COSTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, intends to make certain improvements to the Denton Municipal Airport relating to a Business Plan; and WHEREAS, the City of Denton is interested in participating in a grant offer from TxDOT to fund an Airport Business Plan; and WHEREAS, TxDOT has asked the City of Denton to designate a Project Representative; and WHEREAS, the City of Denton intends to request financial assistance from the Texas Department of Transportation (TxDOT) for these improvements; and WHEREAS, the City of Denton will be responsible for 50% of the total Project cost, currently estimated to be $50,000 in Fiscal Year 2009; and WHEREAS, the City of Denton names the Texas Department of Transportation (TxDOT) as its agent for purposes of applying for, receiving and disbursing all funds for these improvements and for the administration of contracts necessary for the implementation of this project; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. The City of Denton, Texas, hereby directs the City Manager to execute on behalf of the City of Denton, at the appropriate time, and with the appropriate authorizations of this governing body, all contracts and agreements with the State of Texas, represented by the Texas Department of Transportation (TxDOT), and such other parties as shall be necessary and appropriate for the implementation of the improvements to the Denton Municipal Airport referenced in Exhibit A. SECTION 2. Tliis resolution shall become effective immediately upon its passage and approval. rn~. txrooio,~~x~mnoi~soav.oor c..,.. a~~owuoo-n'~.a~ PASSED AND APPROVED this the ~ / =`t day of , 2008. V/" t /`L~l.~ PERRY . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY sY: ~ APPROVED AS TO-LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: PAGE2 TEXAS DEPARTMENT OF TRANSPORTATION AIRPORT PROJECT PARTICIPATION AGREEMENT (State Assisted Airport Planning Grant) TxDOT CSJ No.: 0918DENTN TxDOT Project No.: AP DENTON 11 TxDOT Contract No.: 9XXAV005 Commission Approval: August 28, 2008 Part I -Identification of the Project TO: The City of Denton, Texas FROM: The State of Texas, acting through the Texas Department of Transportation This Agreement is made between the Texas Department of Transportation, (hereinafter referred to as the "State"), on behalf of the State of Texas, and the City of Denton, Texas, (hereinafter referred to as the "Sponsor"), under the authority granted and in compliance with the provisions of the V.T.C.A., Transportation Code, Title 3, Chapters 21-22, et seq.(Vernon and Vernon Supp.). The project is described as planning services to: prepare an airport business plan at the Denton Municipal Airport. Part II -Offer of Financial Assistance The allowable costs of the project shall not include any costs determined by the State to be ineligible under the V.T.C.A. Transportation Code, Title 3, Chapters 21-22, et seq., (Vernon and Vernon Supp). 2. It is estimated that project costs will be approximately $100,000 (Amount A). It is further estimated that approximately $100,000 (Amount B) of the project costs will be eligible for financial assistance, and that financial assistance will be for fifty percent (50%) of the eligible project costs. Project costs eligible for financial assistance shall be determined by the State. It is estimated that the Sponsor's share of the project costs will be approximately $50,000 (Amount C) and the state's financial assistance share of eligible project costs will be approximately $50,000 (Amount D). Financial assistance is subject to the availability of state funds. This grant should not be construed as block grant funds for the Sponsor, but as a grant for Page 1 of 12 funding of the scope items as listed on page one of this agreement. It is the intent of the Agent to provide funding to complete the approved work items of this grant and not to amend the scope of work to include items outside of the current determined needs of this project. Scope of work may be amended as necessary to fulfill the unforeseen needs of this specific development project within the spirit of the approved scope, subject to the availability of state and/or local funds. If there is an overrun in the eligible project costs, the State may increase the grant to cover the amount of overrun not to exceed the statutory twenty-five (25%) percent limitation, and will advise the Sponsor by amendment of the increase. Upon receipt of the amendment, the maximum obligation of the State is adjusted to the amount specified and the Sponsor will remit their share of the increased grant amount. Participation in additional state eligible costs may require approval by the Texas Transportation Commission. The State will not authorize expenditures in excess of the dollar amounts identified in this Agreement and any amendments, without the consent of the Sponsor. 4. After consultant fee negotiations, if the estimated eligible total project costs exceed Amount A, above, the Sponsor may request the State to void this Agreement, whereupon the State shall agree to void this Agreement upon the satisfaction of the following conditions: a. the Sponsor's request to the State to void the Agreement shall be in writing and dated; and b. if required by the State, the Sponsor shall reimburse the State for funds expended on this project and Sponsor shall assume the responsibility for any future State expenses for contracted services or materials related to the project for which a contract had been executed prior to the Sponsor's request to void the Agreement. Sponsor funds held by the State may be retained until this requirement is satisfied; and failure on the part of the Sponsor to comply with the conditions of this paragraph shall constitute a breach of this Agreement. Upon satisfaction of the conditions specified in Paragraph II-4 above, the State shall declare this Agreement null and void, and this Agreement shall have no force and effect, except that unexpended or unencumbered moneys actually deposited by the Sponsor and held with the State for project purposes shall be returned to the Sponsor within a reasonable time. In the event that state funds are unavailable, this Agreement shall automatically be voided and become of no force and effect, except that unexpended or unencumbered moneys actually deposited by the Sponsor and held with the State for project purposes shall be Page 2 of 12 returned to the Sponsor. Sponsor's share of project costs (Amount C) shall be paid in cash when requested by the State. At project close-out, Sponsor will be reimbursed for any amounts that exceed Sponsor's share. The Sponsor specifically agrees that it shall pay any project costs, which exceed the amount of financial participation agreed to by the State. It is further agreed that the Sponsor will reimburse the State for any payment or payments made by the State which are in excess of the percentage of financial assistance (Amount D) as stated in Paragraph II-2. Sponsor, by executing this Agreement certifies and, upon request, shall furnish proof to the State that it has sufficient funds to meet its share of the costs. The Sponsor grants to the State the right, upon advance written request during reasonable and regular business hours, to audit any books and records of the Sponsor to verify the funds. In addition, the Sponsor shall disclose the source of all funds for the project and its ability to finance and operate the project. Following the execution of this Agreement and upon written demand by the State, the Sponsor's financial obligation (Amount C) shall be due and payable to the State. Should the Sponsor fail to pay the obligation, either in whole or in part, within 30 days of written demand, the State may exercise its rights under Paragraph V-5 and/or V-6. Likewise, should the State be unwilling or unable to pay its obligation in a timely manner, the failure to pay shall be a breach and the Sponsor may exercise any rights and remedies it has at law or equity. The State shall reimburse the Sponsor, at the financial closure of the project, any excess funds provided by the Sponsor which exceed Sponsor's share (Amount C). PART III -Sponsor Responsibilities In accepting the Agreement, the Sponsor guarantees that: a. it will comply with Attachment A, Certification of Airport Fund, attached and made a part of this Agreement; and b. it will, in the operation of the facility, comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State of Texas in connection with the Agreement; and the Airport or navigational facility which is the subject of this Agreement shall be controlled for a period of at least 20 years, and improvements made or acquired Page 3 of 12 under this project shall be operated, repaired and maintained in a safe and serviceable manner for the useful life of the improvements, not to exceed 20 years; and d. consistent with safety and security requirements, it shall make the airport or air navigational facility available to all types, kinds and classes of aeronautical use without unjust discrimination between such types, kinds and classes and shall provide adequate public access during the period of this Agreement; and e. it shall not grant or permit anyone to exercise an exclusive right for the conduct of aeronautical activity on or about an airport landing area. Aeronautical activities include, but are not limited to scheduled airline flights, charter flights, flight instruction, aircraft sales, rental and repair, sale of aviation petroleum products and aerial applications. The landing area consists of runways or landing strips, taxiways, parking aprons, roads, airport lighting and navigational aids; and it shall not permit non-aeronautical use of airport facilities, unless noted on an approved Airport Layout Plan, without prior approval of the State; and g. it shall not enter into any agreement nor permit any aircraft to gain direct ground access to the sponsor's airport from private property adjacent to or in the immediate area of the airport. Further, Sponsor shall not allow aircraft direct ground access to private property. Sponsor shall be subject to this prohibition, commonly known as a "through-the-fence operation," unless an exception is granted in writing by the State due to extreme circumstances; and h. it will acquire all property interest identified as needed for the purposes of this project and comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State of Texas in the acquisition of such property interest; and that airport property identified within the scope of this project and Attorney's Certificate of Property Interests shall be pledged to airport use and shall not be removed from such use without prior written approval of the State; and the Sponsor shall submit to the State annual statements of airport revenues and expenses when requested; and all fees collected for the use of an airport or navigational facility constructed with funds provided under the program shall be reasonable and nondiscriminatory. The proceeds of such fees shall be used solely for the development, operation and maintenance of the airport or navigational facility. Sponsor shall not be required to pledge income received from the mineral estate to airport use unless state and/or federal funds were used to acquire the mineral estate of airport lands or any interest therein; and Page 4 of 12 k. an Airport Fund shall be established by resolution, order or ordinance in the treasury of the Sponsor, or evidence of the prior creation of an existing airport fund or a properly executed copy of the resolution, order, or ordinance creating such a fund, shall be submitted to the State. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. All fees, charges, rents, and money from any source derived from airport operations must be deposited in said Airport Fund and shall not be diverted to the general revenue fund or any other revenue fund of the Sponsor for any purposes other than operation of the airport. All expenditures from the Airport Fund shall be solely for airport purposes. Sponsor shall be ineligible for a subsequent grant or loan by the State unless, prior to such subsequent approval of a grant or loan, Sponsor has complied with the requirements of this subparagraph; and the Sponsor shall operate runway lighting at least at low intensity from sunset to sunrise; and m. insofar as it is reasonable and within its power, Sponsor shall adopt and enforce zoning regulations to restrict the height of structures and use of land adjacent to or in the immediate vicinity of the airport to heights and activities compatible with normal airport operations as provided in Tex. Loc. Govt. Code Ann. §§ 241.001 et seq. (Vernon and Vernon Supp.). Sponsor shall also acquire and retain aviation easements or other property interests in or rights to use of land or airspace, unless sponsor can show that acquisition and retention of such interest will be impractical or will result in undue hardship to Sponsor. Sponsor shall be ineligible for a subsequent grant or loan by the State unless Sponsor has, prior to such subsequent approval of a grant or loan, adopted and passed an airport hazard zoning ordinance or order approved by the State; and n. it will provide upon request of the State, and the engineering or planning consultant, copies of any maps, plans, or reports of the project site, applicable to or affecting the above project; and o. after reasonable notice, it will permit the State and any consultants and contractors associated with this project, access to the project site, and will obtain permission for the State, consultants and contractors associated with this project, to enter private property for purposes necessary to this project. p. all development of an airport constructed with program funds shall be consistent with the Airport Layout Plan approved by the State and maintained by the Sponsor. A reproducible copy of such plan, and all subsequent modifications thereto, shall be filed with the State for approval; and The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the Page 5 of 12 State's agents, employees or contractors from all claims and liability due to activities of the Sponsor, the Sponsor's agents or employees performed under this Agreement. The Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the State's agents, employees or contractors from any and all expenses, including attorney fees which might be incurred by the State in litigation or otherwise resisting said claim or liabilities which might be imposed on the State as the result of such activities by the Sponsor, the Sponsor's agents or employees. The Sponsor and not the State shall, for all purposes, be the "Sponsor" of the project. Sponsor agrees to assume responsibility for operation of the facility in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives before, during and after the completion of this project. 4. The Sponsor shall have on file with the State a current and approved Attorney's Certificate of Airport Property Interests and Exhibit A property map. The Sponsor by execution of this grant certifies that it has implemented, or will implement during this project, an effective airport pavement maintenance-management program and it assures that it will use such program during the period of this Agreement. It will provide upon written request such reports on pavement condition and pavement management programs as the State determines may be useful. Failure to comply with this condition may make the Sponsor ineligible for future grants. PART IV -Nomination of the Agent The Sponsor designates the State as the party to receive and disburse all funds used, or to be used, in payment of the costs of the project, or in reimbursement to either of the parties for costs incurred. The State agrees to assume the responsibility to assure that all aspects of the grant are done in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives, except as otherwise specifically provided. The State shall, for all purposes in connection with the project identified above, be the Agent of the Sponsor. The Sponsor grants the State a power of attorney to act as its agent to perform the following services: Receiving/Disbursing Agent: a. accept, receive, and deposit with the State Treasury any and all project funds Page 6 of 12 granted, allowed, and paid or made available by the Sponsor, the State of Texas, or any other entity; b. pay to the Sponsor, from granted funds, the portion of any approved reasonable and eligible project costs incurred by the Sponsor that are in excess of the Sponsor's share. Paying Agent: c. receive, review, approve and pay invoices and payment requests for services and materials supplied in accordance with State approved contracts; Contracting Agent: d. advertise for professional engineering and/or planning services for, but not limited to, the preparation of planning studies, applications, plans and specifications for the above project; select the consultant, certify consultant selection procedures; provide notification of contract award for professional services; and execute, on behalf of the Sponsor, a professional services agreement as related to this project; e. administer Disadvantage Business Enterprises (DBE) and/or Historically Underutilized Business (HUB) Programs in accordance with state regulations. Contract Management Agent: f. exercise such supervision and direction of the project work, as the State reasonably finds appropriate. Where there is an irreconcilable conflict or difference of opinion, judgment, order or direction between the State and the Sponsor, any engineer, planner, contractor, or materialman, the State shall issue a written order, which shall prevail and be controlling; g. participate in conferences; and issue orders as it deems appropriate regarding project progress, including but not limited to Notices to Proceed, Stop Work Orders, and Supplemental Agreements h. coordinate review and approval of project plans, and conduct progress and final meetings. PART V -Recitals The State and Sponsor shall obtain an audit as required by State regulations. 2. The Sponsor, and not the State, shall be the contractual party to all construction and professional service contracts entered into for the accomplishment of this project. The power of attorney, as granted by the Sponsor to the State in Part IV -Nomination of Agent, is a limited power to perform acts in connection with airport improvements as Page 7 of 12 specified in or necessitated by this Agreement. The Sponsor agrees to pursue and enforce contract items, which are required by federal and/or state regulations, laws and orders to insure satisfactory performance of contract vendors. Such items include, but are not limited to, bid bonds, payment bonds, and performance bonds. Pursuit and enforcement of contract items may require litigation and other remedies of law. 4. This Agreement is executed for the sole benefit of the contracting parties and is not intended or executed for the direct or incidental benefit of any third party. The State shall not be a party to any other contract or commitment, which the Sponsor may enter into or assume, or have entered into or have assumed, in regard to the above project. If the Sponsor fails to comply with the conditions of the grant, the State may, by written notice to the Sponsor, suspend the grant in whole or in part. The notice of suspension shall contain the following: a. The reasons for the suspension and the corrective action necessary to lift the suspension; b. A date by which the corrective action must be taken; Notification that consideration will be given to terminating the grant after the corrective action date. In the case of suspension or termination, the Sponsor may request the State to reconsider the suspension or termination. Such request for reconsideration shall be made within 45 days after receipt of the notice of suspension or termination. This Agreement is subject to the applicable provisions of the V.T.C.A. Transportation Code, Title 3, Chapters 21-22, et seq., (Vernon and Vernon Supp.), and the Airport Zoning Act, Tex. Loc. Govt. Code Ann. §§ 241.001 et seq. (Vernon and Vernon Supp.). Failure to comply with the terms of this Agreement or with the rules and statutes shall be considered a breach of this contract and will allow the State to pursue the remedies for breach as stated below. Of primary importance to the State is compliance with the terms and conditions of this Agreement. If, however, after all reasonable attempts to require compliance have failed, the State finds that Sponsor is unwilling and/or unable to comply with any of the terms and conditions of this Agreement, the State, may pursue any of the following remedies: (1) require a refund of any financial assistance money expended pursuant to the Agreement, (2) deny Sponsor's future requests for aid, (3) request the Attorney General to bring suit seeking reimbursement of any financial assistance money expended on the project pursuant to the Agreement, provided however, these remedies shall not limit the State's authority to enforce Page 8 of 12 its rules, regulations or orders as otherwise provided by law, (4) declare this Agreement null and void, or (5) any other remedy available at law or in equity. b. Venue for resolution by a court of competent jurisdiction of any dispute arising under the terms of this Agreement, or for enforcement of any of the provisions of this Agreement, is specifically set by Agreement of the parties in Travis County, Texas. The State reserves the right to amend or withdraw this Agreement at any time prior to acceptance by the Sponsor. The acceptance period cannot be greater than 30 days after issuance unless extended by the State. 8. The Sponsor's acceptance of this Offer and ratification and adoption of the Agreement shall be evidenced by execution of this Agreement by the Sponsor. The Agreement shall comprise a contract, constituting the obligations and rights of the State of Texas and the Sponsor with respect to the accomplishment of the project and the operation and maintenance of the airport. The Agreement shall become effective upon execution of the Agreement by the State and shall remain in full force and effect for a period of at least 20 years. 9. This Agreement constitutes the full and total understanding of the parties concerning their rights and responsibilities in regard to this project and shall not be modified, amended, rescinded or revoked unless such modification, amendment, rescission or revocation is agreed to by both parties in writing and executed by both parties. 10. All commitments by the Sponsor and the State are subject to constitutional and statutory limitations and restrictions binding upon the Sponsor and the State (including §§ 5 and 7 of Article 11 of the Texas Constitution, if applicable) and to the availability of funds which lawfully may be applied. 11. The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under the contract or indirectly through a subcontract under the contract. Acceptance of funds directly under the contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. Page 9 of 12 Part VI -Acceptance of the Sponsor The City of Denton, Texas does ratify and adopt all statements, representations, warranties, covenants and agreements constituting the described project and incorporated materials referred to in the Agreement, and does accept the Offer, and agrees to all of the terms and conditions of the Agreement. °r~ i - - Executed this < < day of ~~ ~~~^-~ , 20~. The City of Denton, Texas Sponsor e~f;~ Wifiess Signature Sponsor Signature ~-2vi ; o r YGiw ~l ~Go ~~/./ •Ze~ :y x. d ~ ~fl~-.C1P+~11~ Lvti Wifiess Title Sponsor Title Certificate of Sponsor's Attorney I,~=)C~~(1r1 1`1'1 \C~~'1T ,acting as attorney for ~ Y~(3 Texas, do certify that I hav lly examined the Agreement and the pro eedings taken by the Sponsor relating, and find that the manner of acceptance and execution, of the Agreement by the Sponsor, is in accordance with the laws of the State of Texas. Dated at 1/F~+n.'~Qy~ ,Texas, this ~_ day of< ~~GW1~~r , 2008. Wifiess Signature ~ Attorney natu ~ orb r i ~' ~ Wi ess Title Page 10 of 12 Part VII -Acceptance of the State Executed by and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs and grants heretofore approved and authorized by the Texas Transportation Commission. STATE OF TEXAS TEXAS DEPARTMENT OF TRANSPORTATION a`~ ~s~ David S. Fulton, Director Aviation Division Texas Department of Transportation Date: ~ ~/ ~7 ~~ Page 11 of 12 ATTACHMENT A CERTIFICATION OF AIRPORT FUND The Sponsor does certify that an Airport Fund has been established for the Sponsor, and that all fees, charges, rents, and money from any source derived from airport operations will be deposited for the benefit of the Airport Fund and will not be diverted for other general revenue fund expenditures or any other special fund of the Sponsor and that all expenditures from the Fund will be solely for airport purposes. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. The City of Denton, Texas (Sponsor) By: Titl Page 12 of 12 Date: ~~~~ $' -~ CERTIFICATION OF PROJECT FUNDS 1, Bryan Langley Director of Finance (Name) (Title) do certify that sufficient funds to meet the City of Denton share of (Sponsor Name) project costs as identified for the project and will be available in accordance with the schedule shown -below: SPONSOR FUNDS Source Amount Date Available Gas Well Revenue Funds $50,000 June 17, 2008 City of Denton, Texas, By ; Title: Director of Finance Date: h 7 f t . DESIGNATION OF SPONSOR'S AUTHORIZED REPRESENTATIVE I, George C. Campbell City Manager , (Name) (Title) with the City of Denton designate Tim E. Whitman, Airport Manager (Sponsor Name) (Name ,Title) as the City of Denton's authorized representative for the Airport Business Plan project, (Sponsor Name) who shall have the authority to make approvals and disapprovals as required on behalf of the City of Denton (Sponsor Name) City of Denton, Texas (Sponsor) (Stgnatur George C. Camp ell Title: City Manager June 17, 2008 DESIGNATED REPRESENTATIVE Mailing Address: Denton Airport ~rpo enton, *PhysicaVOvernight Address: Denton Airport 5000 Airport Rd., Denton, TX 76207 Telephone Number: Fax Number: 940/349-7744 940/349-7289 E-Mail Address: tim.whitman@cityofdenton.com * ALL GRANT AGREEMENTS ARE SENT BY OVERNIGHT MAIL DESIGNATION OF SPONSOR'S CONSULTANT SELECTION COMIVIITTEE 1, _ George Campbell City Manager (1`l~e) (Title) ' with the City of Denton designate the following named individuals as the (Sponsor Name) Consultant Selection committee, for the Denton Airport Business Plan. The committee is authorized to determine selection criteria, review qualifications and proposals of candidate firms, conduct interviews, if necessary, and select a firm for the award of the design contract, based on a consensus ranking by the committee members. The decision of the selection committee will be final unless some discrepancy is determined to have occurred in the selection process. Name Title (if appropriate): 1. Susan Croff Utilit Process/ unlit Control Auditor 2. Kenneth Banks PhD Mana er Division on Environmental ualit 3. Mark Nelson Director of Trans ortation The City of Denton has caused this to be duly executed in its name, this 30"' day of September 2008. City of Denton Texas (Sponsor) l By: - Title: City Manager RESOLUTION s:\our documentstresolu[ions\08\nthea res 2008 additional bonds.doc RESOLUTION NO. (, - A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF ADDITIONAL BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH ADDITIONAL BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority'.')' was established as anon-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans; and WHEREAS, the City of Denton and the City of Arlington have requested the Authority to exercise the powers provided for in Section 53B.47 of the Texas Education Code, as amended; and WHEREAS, puisuant to such request, the Authority has issued student loan revenue bonds or otherwise borrowed money to obtain funds to purchase student loans which are guaranteed under the provisions of the Higher Education Act of 1965, as amended, and additional funds are now needed to continue the program; WHEREAS, upon request of the Authority, the City Council of the City of Denton, Texas approved the issuance of certain student loan revenue bonds by the Authority on Mazch 4, 2008 by Resolution No. 82008-007; and WHEREAS, the Authority has notified the City that it has been unable to issue such bonds but intends to do so; and WHEREAS, the Authority has now requested that the City Council of the City of Denton, Texas approve the issuance of student loan revenue bonds in addition to those approved by Resolution No. 82008-007 in order to allow the Authority to restructure its debt and take advantage of private activity bond allocations; and WHEREAS, the City .wishes to approve the issuance of the Authority's bonds provided that City is not responsible in any way for such bonds, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That, in addition to the student loan revenue bonds approved by Resolution 82008-007, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver during 2008 taxable student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $5,000,000. The bonds or other obligations aze to be issued for the purposes of refunding outstanding obligations of the Authority, obtaining funds to purchase student or parent loan notes which aze guaranteed under the Higher Education Act of 1965, as amended, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying 500821321 1 s:\our documen[s\resolutions\OS\nthea res 2008 additional bonds.doc the cost of issuing such obligations ih accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 2. That, in addition to the student loan revenue bonds approved by Resolution R2008-007 and Section 1, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $100,000,000, to consist of student loan revenue bonds utilizing a 2008 Private Activity Bond Allocation. The bonds or other obligations aze to be issued for the purposes of obtaining funds to purchase student or parent loan notes which aze guazanteed under the Higher Education Act of 1965, as amended, refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessazy for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 3. That, in addition to the student loan revenue bonds approved in Resolution R2008-007 and Sections 1 and 2, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver during 2008 additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $85,000,000. The bonds or other obligations aze to be issued for the purposes of refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessazy for a reserve and for operating costs, and paying the cost of issuing such obligations, to the extent permitted by the pertinent financing documents and the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 4. The City of Denton, Texas requests that the Authority exercise the powers enumerated and provided for in Section 53B.47, Texas Education Code, as amended, and that such non-profit corporation shall, in this connection, exercise such powers for and on behalf of the City of Denton, Texas and the State of Texas, as contemplated by Section 53B.47(e), (f) and (g), Texas Education Code, as amended. SECTION 5. The City of Denton; Texas does not agree to assume any responsibility in connection with the administration of the Authority's student loan program. Sole responsibility for the administration of the Authority's student loan program is assumed by the Authority. SECTION 6. Further, it is recognized by the City of Denton, Texas that the instruments which authorize the issuance of bonds, notes, or obligations by the Authority will specifically state that the City of Denton, Texas is not obligated to pay the principal of or interest on the bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the payment of any obligations of said Authority whether theretofore or hereafter incurred; and in this connection, attention is called to the Constitution of the State of Texas, wherein it is provided that a city may incur no indebtedness without having made provisions for its payment, and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any present or future funds, assets or money for the payment of any indebtedness or obligation of the Authority. sooszlsz.l 2 s:\our documentsUesolutions\OS\nthea res 2008 additional bonds.doc SECTION 7. It. is hereby officially found and determined that the meeting at which this resolution is passed is open to the public, as required by law, and that public notice of the time, place and purpose of said meeting was posted, as required bylaw. SECTION 8. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of , 2008. PERK . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: W ~~~ APP OVED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 50082132.1 s:\our documen[s\resolutions\08\n[hea res 2008 additional bonds.doc CERTIFICATE OF SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the following: 1. On the ~ day of _, 2008, the City Council of the City of Denton, Texas convened in regulaz ses on~laz meeting place in Citv Hall, with the duly constituted members of the City Council being as follows: Perry McNeill Mayor Charlye Heggins Council Member, District 1 Rudy Moreno Council Member, District 2 Jack Thomson Council Member, District 3 Chris Watts Council Member, District 4 Pete Kamp Council Member, At Lazge Place 5 and Mayor Pro Tem Joe Mulroy Council Member, At Large Place 6 and Deputy Mayor Pro Tem and all Councii Members were present at said meeting, except the following: Among other business considered at said meeting, the attached resolution, entitled: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF ADDITIONAL BONDS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH ADDITIONAL BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH was introduced and submitted to the Council for approval and passage. After presentation and due consideration of the resolution, and upon a motion by ~[,(Y»t~Q-j7 J , seconded by ~~, the resolution was duly passed and adopted by the City Council, to be of ve immediately, by the following vote: voted "For" (~ voted "Against" /!//t abstained all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date. 50082132.1 s:\our documentstresolutions\08\n[hea res 2008 additional bonds.doc 2. The attached resolution is a true and correct copy of the original resolution on file in the official records of the City of Denton, Texas. The duly qualified and acting members of the City Council of the City of Denton, Texas, on the date of the aforesaid Council meeting are those persons above named; and according to the records of my office, each member of the City Council was given advance notice of the time, place and purpose of the meeting, and that said meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the entitled resolution, was posted and given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government Code. IN WITNESS THEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the ~/7~h day of , 2008. Je 'fer Walters, City Secretary City of Denton, Texas (Seal) soos2lsz.i 2 RESOLUTION s:\our documents\resolutions\08\oncor res with suspension.doc RESOLUTION NO. 2,0~~ OZ ~o A RESOLUTION OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE SUSPENSION OF PROPOSED RATES AND THE INTERVENTION IN THE PUBLIC UTILITY COMMISSION PROCEEDING INVOLVING THE REQUEST TO INCREASE ELECTRIC RATES OF ONCOR ELECTRIC DELIVERY COMPANY; AUTHORIZING PARTICIPATION IN A COALITION OF MUNICIPALITIES KNOWN AS THE ALLIANCE OF TXU/ONCOR CUSTOMERS ("ATOC"); PROVIDING FOR THE RETENTION OF EXPERTS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on June 27, 2008 oncor Electric Delivery Company ("oncor") filed a request to increase its transmission and distribution rates by more than $275 million; and WHEREAS, under the Public Utility Regulatory Act § 36.108 a municipality may suspend the effective date for adoption of the request for a change in rates; and WHEREAS, in June 2008 four retail electric providers ("REPs") have gone out of business, forcing thousands of electric customers to purchase electricity at prices which are unheard of in the United States; and WHEREAS, the oncor rate increase request is being filed at a time when the Public Utility Commission of Texas is considering requests for over $5 billion in new transmission projects. A large portion of the costs for these projects will be borne by customers located within the municipalities served by oncor; and WHEREAS, the general rate increase being requested by oncor is in addition to the surcharge being sought for advanced metering services; and WHEREAS, the oncor rate increase requires the specialized expertise of lawyers and experts who concentrate on analyzing utility rate requests; and WHEREAS, the coalition known as the Alliance of TXU/oncor Customers ("ATOC") was active at the Public Utility Commission of Texas in the oncor 2007 rate request proceeding and in the proceeding involving the acquisition of TXU Electric Distribution Company by Texas Entergy Future Holdings; and WHEREAS, participation in ATOC will benefit electric customers within our municipality by helping insure that oncor rates are just and reasonable and WHEREAS, given the complexity it is impossible to complete the review of Oncor's request to increase rates within the time of the original effective date of August 8, 2008; NOW, THEREFORE, • s:\our documents\resolutions\08\oncor res with suspension.doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. The findings set out in the preamble to this resolution are in all things approved and adopted. SECTION 2. The City is authorized to join with other municipalities, public entities and commercial customers in order to participate in the Alliance of TXU/oncor Customers ("ATOC"), to form a steering committee to provide direction and guidance to legal and consulting experts with regard to the oncor 2008 General Rate Request. SECTION 3. The City does hereby suspend the proposed effective date for Oncor's request for an increase in rates for a period of 90 days from August 8, 2008. SECTION 4. The City authorizes the law firm of Herrera & Boyle, PLLC to act on behalf of the City and ATOC in the oncor 2008 General Rate Request and related proceedings. SECTION 4. Legal counsel for ATOC is authorized to take such actions in connection with the oncor 2008 General Rate Request as are in the best interest of the customers of oncor who are located within the City's municipal boundaries, consistent with the instructions of the Steering Committee, including any administrative or judicial proceedings related to Oncor's 2008 General Rate Request. SECTION 6. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 7. This resolution shall become effective from and after its passage. PASSED AND APPROVED this the 5~~ day of ~~,/~~,(,~~ , 2008. MARK A. BUR~JGHS~,i1v1AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ^, ~ 2of3 s:\our documents\resolutions\08\oncor res with suspension.doc APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY ~~' BY: ~_ _ 3 of 3 RESOLUTION c:\docume-1\jericharUocals-I\temp\~cpgrpwise\oversight committee.doc RESOLUTION NO. ,~Q - A RESOLUTION AMENDING RESOLUTION No. R2005-015 BY FILLING A VACANCY OF THE CITIZENS ADVISORY OVERSIGHT COMMITTEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council called and ordered a bond election for February 5, 2005, for the purpose of submitting to the voters of the City of Denton certain capital improvements, which bonds were approved by the voters as a result of the election; and WHEREAS, on April 19, 2005, by Resolution No. 2005-015, the City Council appointed a special five (5) member Citizens Advisory Oversight Committee ("Committee") to monitor, evaluate, and report on the progress of the Five-Year Capital Improvements Program which consisted of Mark Burroughs, the Citizens Advisory Oversight Committee chairperson; Randy Robinson, co-chairperson, Polly Diebel, the Community Development Project Team chairperson, Rick Woolfolk, the Transportation Project Team chairperson, and Roni Beasley, the Parks and Recreation Project Team chairperson; and WHEREAS, on June 25, 2008 during an open meeting of the Committee, Mark Burroughs resigned his position on the Committee; and WHEREAS, the City Council desires to fill the current vacancy by appointing Jerry Mohelnitzky as a new Committee member; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council hereby appoints Jerrv Mohelnitzky as member of the Citizens Advisory Oversight Committee. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY O9m~` s:\our documents\resolutions\08\oversight committee.doc APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM. CITY ATTORNEY BY: Page 2 RESOLUTION C:\DOCUME-IUERICHAR\LOCALS-1\Temp\XPgrpwise\DCTA Board Appointment.doc RESOLUTION NO. ZOOS-D~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPOINTING ONE MEMBER TO THE BOARD OF DIRECTORS OF THE DENTON COUNTY TRANSPORTATION AUTHORITY; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 460.2015(c) of the Transportation Code authorizes the governing body of the City of Denton to appoint one member to the Board of Directors (the "Authority Board") of the Denton County Transportation Authority (the "Authority"); and WHEREAS, pursuant to Resolution No. R2007-034 the City Council of the City of Denton appointed Mark Burroughs as the City of Denton representative to the Authority Board and appointed Mark Nelson as the First Alternate, each for atwo-year term; and WHEREAS, Mark Burroughs has resigned his position and the City Council deems it be in the public interest to appoint a member to the Authority Board to fill. his unexpired term; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this Resolution are incorporated herein by reference. SECTION 2. Guy McElroy is hereby appointed as a member to the Authority Board as a representative for the City of Denton, Texas. Such person is qualified to serve on the Authority Board as having professional experience in the field of transportation, business, government, engineering, or law. SECTION 3. The City Manager is hereby authorized to send a certified copy of this Resolution to appropriate officials of the Authority. SECTION 4. All previous resolutions and orders or parts of resolutions or orders in force when the provisions of this Resolution become effective which are inconsistent or in conflict with the terms or provisions contained in this Resolution are hereby repealed to the extent of any such conflict. SECTION 5. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the J~v day of ~ , 2008. HS,1~~f'OR ' ,' S:\Our Documents\Resolutions\08\DCTA Board Appointment.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: , Page 2 of 2 I RESOLUTION s:\our documents\resolutions\08\blues festival alcohol sell.doc RESOLUTION NO. ~~ A RESOLUTION ALLOWING THE BLACK CHAMBER OF COMMERCE TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE BLUES FESTIVAL ON SEPTEMBER 20, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Blues Festival; and WHEREAS, the Black Chamber of Commerce (called "Chamber") has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Blues Festival on September 20, 2008; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that Chamber be the sole participant allowed to sell alcoholic beverages at the Blues Festival; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Chamber shall be the sole participant allowed to sell alcoholic beverages at the Blues Festival on September 20, 2008 at the Quakertown Park upon the following conditions: 1. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00; 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Blues Festival. SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __1~ day of , 2008. ARK . B GHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Page 2 of 2 s:bur documerns~contracu108~blues festival cor~act.doc QUAKERTOWN PARK AGREEMENT FOR THE BLUES FESTIVAL STATE OF TEXAS COUNTY OF DENTON This Agreement, made this ~~~~day of 2008, by and between the City of Denton, a municipal corporation, hereinafter r rred to as the "CITY" and the Black Chamber of Commerce, (called "CHAMBER"}. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE 1 GENERAL The City grants to CHAMBER the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter set forth, for the Blues Festival on September 20, 2008, to be held at the Quakertown Pazk. Attached hereto and made a pazt hereof by is a copy of the resolution passed by the City Council of Denton, Texas, authorizing this privilege. This privilege does not extend beyond the date of the Blues Festival set for the year 2008. ARTICLE 2 SCOPE OF SERVICES CHAMBER in order to exercise the privilege to sell alcoholic beverages must perform the following: A. CHAMBER shall be solely responsible for the rental and payment for any booth space necessary for the sale of alcoholic beverages at the Blues Festival. B. CHAMBER shall be solely responsible to obtain any temporary license and permit necessary for the selling of alcoholic beverages at the Blues Festival. C. CHAMBER shall be solely responsible for the obtaining and paying for any security necessary for their sale of alcoholic beverages at the Blues Festival. CHAMBER'S failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the Blues Festival. ARTICLE 3 LOCAL RULES AND REGULATION CHAMBER agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Quakertown Park Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. CHAMBER shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. CHAMBER will exercise reasonable care and due diligence in their sale of alcoholic beverages at the Blues Festival. ARTICLE 4 INDENINITY AGREEMENT CHAMBER shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of CHA.~VIBER or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE 5 INSURANCE During the performance of the Agreement, CHAMBER shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not less than $100,000 in the aggregate. B. Liquor/Dram Shop Liability in the amount of $250,000 per occurrence for any event occurring on City-owned property where alcohol will be provided or served. Blues Festival Agreement -Page 2 C. CHAMBER shall furnish insurance certificates or insurance policies at the CITY' S request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a .provision that such insurance shall not be canceled or modified without written notice to the CITY and CHAMBER In such event, CHAMBER shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3} days' mailing: To CHAMBER: Black Chamber of Commerce Kerry Goree; Chairman P.O. Box 51026 Denton, Texas 76206 To CITY: City of Denton City Manager 215 E. McKinney Denton, Texas 76201 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of five {5) pages and one (1) exhibit, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE 8 SEVERABILTI'Y If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible.to expressing the intention of the stricken provision. Blues Festival Agreement -Page 3 ARTICLE 9 DISCRIMINATION PROHIBITED In performing the services required hereunder, CHAMBER shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE 10 PERSONNEL CHAMBER represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. ARTICLE 11 ASSIGNABILITY CHAMBER shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise} without the prior written consent of the CITY. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be chazged therewith; and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits aze attached to and made a part of this Agreement: {list exhibits) Exhibit "A" Resolution No. - ~ .lJ B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. Blues Festival Agreement -Page 4 C. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. LN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and CHAMBE executed this Agreement through its duly authorized undersigned officer on this the _1~day of , 2008. CITY OF DENTON, TEXAS r ~- GEORGE C. CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: BLACK CHAMBER OF COMMERCE BY: RR GOREE, CHAIRMAN WITNESS: BY: Blues Festival Agreement -Page 5 s:\ourdocumenu\resolutions\08\blues festival alcohol sell.do~ EXHIBIT A RESOLUTION NO. ~~ A RESOLUTION ALLOWING THE BLACK CHAMBER OF COMMERCE TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE BLUES FESTIVAL ON SEPTEMBER 20, 2008, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Quakertown Park; and WHEREAS; the consumption of alcoholic beverages is allowed in the Quakertown Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Blues Festival; and WHEREAS, the Black Chamber of Commerce (called "Chamber") has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Blues Festival on September 20, 2008; and WHEREAS, the Pazks, Recreation, and Beautification Board has recommended that Chamber be the sole participant allowed to sell alcoholic beverages at the Blues Festival; and WHEREAS, the City agrees with the recommendation of the Pazks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Chamber shall be the sole participant allowed to sell'alcoholic beverages at the Blues Festival on September 20, 2008 at the Quakertown Pazk upon the following conditions: 1. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00; 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Blues Festival. SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _~ day of , 2008. ~VIARK . B GHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY .~ BY: .~- Page 2 of 2 RESOLUTION S:\Our Documents\Resolutions\08\91 I vote for member.doc RESOLUTION NO. OOg-03 A RESOLUTION VOTING FOR A MEMBER TO THE BOARD OF MANAGERS OF THE DENCO AREA 9-1-1 DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office of Harlan Jefferson, a member of the Board of Managers of the Denco 9-1-1 District, will expire on September 30, 2008; and WHEREAS, Section 772.306 of the Health and Safety Code (V.A.C.S.) provides that two voting members of the Board of Managers of an Emergency Communication District shall be appointed jointly by participating municipalities located in whole or in part in the District; and WHEREAS, the City of Denton, Texas wishes to vote for a member to said Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas hereby votes for Harlan Jefferson as a member to the Board of Managers of the Emergency Communication District of Denton County for a two year term to commence October 1, 2008. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ %~"~ day of ~, 2008. MARK A. B OU AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED A O LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: RESOLUTION S:\Our DocumentsUtesolutions\08\Budget Tax Rate Public Hearing.doc RESOLUTION NO. ~OO~ D~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 23, 2008 CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2008 TAX RATE THAT WILL EXCEED THE LOWER OF THE ROLLBACK RATE OR THE EFFECTIVE TAX RATE; CALLING TWO PUBLIC HEARINGS ON A TAX INCREASE TO BE HELD ON SEPTEMBER 9, 2008 AND SEPTEMBER 16, 2008 AND CALLING A THIRD PUBLIC HEARING ON THE FISCAL YEAR 2008-2009 ANNUAL PROGRAM OF SERVICES OF THE CITY OF DENTON TO BE HELD ON SEPTEMBER 9, 2008; REQUIRING PUBLICATION OF A NOTICE OF THE PUBLIC HEARINGS IN ACCORDANCE WITH THE LAW; REQUIRING THE POSTING OF THE NOTICE OF THE PUBLIC HEARINGS ON A TAX INCREASE ON THE CITY'S INTERNET WEBSITE; REQUIILIl~TG THE POSTING OF THE NOTICE ON THE CITY'S PUBLIC ACCESS CHANNEL; AND PROVIDING AN EFFECTNE DATE. WHEREAS, the City Council desires to adopt the Fiscal Year 2008-2009 Annual Program of Services (Budget) for the City of Denton, Texas; and WHEREAS, in order to adopt the Budget, the City Council must first hold a public hearing on the Budget and provide notice of same in accordance with Article VIII "Budget" of the City Charter and other applicable law; and WHEREAS, the City Council desires to consider adopting a tax rate of $0.6662 per $100 valuation, which will exceed the lower of the rollback rate or effective tax rate, in accordance with the requirements of the Texas Tax Code Chapter 26 (Tax Code) and to schedule two public hearings on the proposed tax increase; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council desires to consider adopting a tax rate for the 2008 tax year of $0.66652 per $100 per valuation that will exceed the lower of the rollback rate or the , effective tax rate. ~ SECTION 3. The City Council hereby approves the placement of an item on the September 23, 2008 City Council public meeting agenda to vote on a proposed tax rate of $0.66652 per $100 valuation that will exceed the lower of the rollback rate or the effective tax rate. SECTION 4. The City Council hereby calls two public hearings on the proposed tax increase to be held in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201 on September 9, 2008 and September 16, 2008 at 6:30 p.m. The public hearings will not be held until at least seven days after notice of the public hearings have been published in the Denton Record-Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Public Hearing on Tax Increase, which is made a S:\Our Documents\Resolutions\08\Budget Tax Rate Public Hearing.doc part of this Resolution for all purposes. The City Manager, or his designee, is hereby directed to publish said notice in accordance with this Resolution and in accordance with Tax Code §26.06. The City Manager or his designee is directed to post the attached Notice of Public Hearing on Tax Increase on the City's Internet website and shall request that the City's public access television channel carry a 60-second notice of the public hearing at the times and for the periods and in accordance with the requirements of Chapter 26 of the Tax Code and other applicable law. At the public hearings, the City Council will afford adequate opportunity for both proponents and opponents of the tax increase to present their views. SECTION 5. The City Council hereby calls a public hearing on the proposed Budget to be held in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201 on September 9, 2008 at 6:30 p.m. The public hearing will not be held until notice of the public hearing has been published in the Denton Record-Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Public Hearing on the Budget, which is made a part of this Resolution for all purposes. This notice shall be published not earlier than the 30`h or later than the 10th day before the date of the public hearing. The City Manager, or his designee, is hereby directed to publish said notice and to provide such other public notice as may be required in accordance with this Resolution and in accordance with Article VIII of the City Charter, Chapter 102 of the Texas Local Government Code and all other applicable law. SECTION 6. This Resolution shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the 19th day of August, 2008, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et sey. The City Secretary is hereby directed to record this Resolution and the vote on the proposal to place the item for a tax increase on the September 23, 2008 City Council agenda. PASSED AND APPROVED this the /9~~ day of ~,/,/f~,/,(,d ~ , 2008. . MARK A. BUR~9'[JG~IS! N~AYOR ATTEST: JENNIFER WALTERS,\CITY SECRETARY B APPR VED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Page 2 r ~ S:\Our Documents\Resolutions\08\Budget Tax Rate Public Hearing.doc Council Member Mark A. Burroughs, Mayor Charlye Heggins Rudy Moreno Jack Thomson Chris Watts Pete Kamp, Mayor Pro Tem Joe Mulroy, Page 3 Voted For Voted A a~ inst Publish in August 31, 2008 Denton Record-Chronicle Notice of Public Hearing on Tax Increase The City of Denton, Texas, will hold two public hearings on a proposal to increase total tax revenues from properties on the tax roll in the preceding tax year by 0.23 percent (percentage by which proposed tax rate exceeds lower of rollback rate or effective tax rate calculated under Chapter 26, Tax Code). Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted. The first public hearing will be held on September 9, 2008 at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas 76201. The second public hearing will be on September 16, 2008 at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas 76201. The members of the governing body voted on the proposal to consider the tax increase as follows: FOR: AGAINST: PRESENT and not voting: ABSENT: The average taxable value of a residence homestead in Denton, Texas last year was $136,546 (average taxable value of a residence homestead in the taxing unit for the preceding tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). Based on last year's tax rate of $0.66652 (preceding year's adopted tax rate) per $100 of taxable value, the amount of taxes imposed last year on the average home was $910.11 (tax on average taxable value of a residence homestead in the taxing unit for the preceding tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). The average taxable value of a residence homestead in Denton, Texas this year is $156,339 (average taxable value of a residence homestead in the taxing unit for the current tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). If the governing body adopts the effective tax rate this year of $0.66502 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $1,039.69 (tax on average taxable value of a residence homestead in the taxing unit for the current tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). If the governing body adopts the proposed tax rate of $0.66652 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $1,042.03 (tax on average taxable value of a residence homestead in the taxing unit for the current tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). Members of the public are encouraged to attend the hearings and express their views. Publish in Denton Record-Chronic/e on Aug. 24, 2008 NOTICE OF PUBLIC HEARING ON BUDGET The City Council for the City of Denton, Texas, will hold a public hearing on the Fiscal Year 2008 - 2009 Annual Program of Services (Budget), on Tuesday, September 9, 2008 at 6.30 p.m. in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201. The meeting will be held for the purpose of receiving community input on the Budget. THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR'S BUDGET BY $1,345,433 OR 3.3%, AND OF THAT AMOUNT $1,204,508 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR. All interested citizens are encouraged to attend and express their views. s:\our documents\miscellaneous\08\notice of public hearing on budget.doc RESOLUTION 1 ~ S:\Our Documents\Resolutions\08\vote on [ax rate2.doc RESOLUTION NO. ~,ODg~' ~3~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ANNOUNCING THAT IT WILL VOTE ON A TAX RATE THAT WILL RESULT IN A TAX REVENUE INCREASE AT ITS MEETING OF SEPTEMBER 23, 2008; PROVIDING FOR PUBLICATION OF NOTICE OF SUCH VOTE ON THE TAX RATE; PROVIDING A RATIFICATION CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, at its meeting of August 19, 2008, the City Council of the City of Denton, Texas (City) voted to place a proposal on the September 23, 2008 City Council agenda to adopt a proposed tax rate of $0.66652 per $100 valuation, which will exceed the lower of the rollback rate or the effective tax rate; and and WHEREAS, the City Secretary duly recorded the vote of the City Council on that matter; WHEREAS, the City Council also called two public hearings on the tax increase, the first for its meeting of September 9, 2008 and the second on September 16, 2008; and WHEREAS, publication and posting of notice of two public hearings on the tax increase were made in accordance with the law, and hearings were held on September 9, 2008 and September 16, 2008, and all proponents and opponents of the tax increase were given an adequate opportunity to present their views at the public hearings; and WHEREAS, at the public hearings the City Council announced the date, time and place of the meeting at which it will vote on the proposed tax rate; and WHEREAS, the City Council wishes to finally set the date, time, and place of the meeting at which it will vote on the tax rate; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council will vote on the proposed tax rate of 0.66652 for each $100 of taxable value that will result in a tax revenue increase at its meeting of September 23, 2008, which will commence at 6:30 p.m. and will be held in the City Council Chambers at City Hall at 215 East McKinney Street, Denton, Texas 76201. SECTION 3. Prior to the vote on the proposed tax rate, the City Manager, or his designee, is directed to publish in the Denton Record-Chronicle, a newspaper having general circulation in the City, the attached Notice of Tax Revenue Increase, which is made a part of this Resolution for all purposes. Such publication to be in compliance with the requirements of the Texas Property Tax Code (Tax Code) and other applicable law. The City Manager, or his designee, is directed to post the attached Notice of Tax Revenue Increase on the City's Internet Y S:\Our Documents\Resolutions\08\vote on tax rate2.doc ~vebsite and shall request that the City's public access television channel carry a 60-second Notice of Tax Revenue Increase at the times and for the periods and in accordance with the requirements of the Tax Code and other applicable law. SECTION 4. The City Council ratifies and approves the form of the Notice of Public Hearing on Tax Increase as published in the Denton Record-Chronicle on August 31, 2008 and the actions of the City Manager or his designee in publishing same. SECTION 5. This Resolution shall become effective immediately upon its passage and approval at the meeting of the City Council of the City of Denton, Texas on this the 16th day of September, 2008, at which meeting a quorum was present and the meeting vas held in accordance with the provisions of Tex. Gov't Code §551.001, et seq. The City Secretary is hereby advised to record this Resolution and the vote on the proposal to place the item for a vote on the tax rate that will result in a tax increase on the September 23, 2008 City Council agenda. PASSED AND APPROVED this the ~~ day of ~ , 2008. M A. G ,MAYOR ATTEST: JENI`TIFER WALTERS, CITY SECRETARY BY: 2m~n- 1~1 ~l ~ (1 ,Y~,r ~~ APPR~JVED PTO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Council Member Mark A. Burroughs, Mayor Charlye Heggins Rudy Moreno Jack Thomson Chris Watts Pete Kamp, Mayor Pro Tem Joe Mulroy, Voted For Voted A_a~ inst Page 2 RESOLUTION , ~ S:\Our Documents\Resolutions\08\vote on budget.doc RESOLUTION NO. 2~01> ' ~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ANNOUNCING THAT IT WILL VOTE ON THE FISCAL YEAR 2008-2009 ANNUAL PROGRAM OF SERVICES (BUDGET) FOR THE CITY OF DENTON AT ITS MEETING OF SEPTEMBER 23, 2008; PROVIDING A RATIFICATION CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, at its meeting of August 19, 2008, the City Council called a public hearing on the Fiscal Year 2008-2009 Annual Program of Services (Budget) for the City of Denton for its meeting of September 9, 2008; and WHEREAS, publication of notice of the public hearing on the Budget was made in accordance with the law, the hearing was held on September 9, 2008, and all proponents and opponents of the Budget were given an adequate opportunity to present their views at the public hearing; and WHEREAS, the City Council wishes to finally set the date, time, and place of the meeting at which it will vote on the adoption of the Budget; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council will vote on the adoption of the Fiscal Year 2008-2009 Annual Program of Services (Budget) at its meeting of September 23, 2008, which will commence at 6:30 p.m. and will be held in the City Council Chambers at City Hall at 215 East McKinney Street, Denton, Texas 76201. SECTION 3. The City Council ratifies and approves the form of the Notice of Public Hearing on Budget as published in the Denton Record-Chronicle on August 24 and August 29, 2008 and the actions of the City Manager, or his designee, in publishing same. SECTION 4. This Resolution shall become effective immediately upon its passage and approval at the meeting of the City Council of the City of Denton, Texas on this the 9th day of September, 2008, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et seq. The City Secretary is hereby advised to record this Resolution and the vote on the proposal to place the item for adoption of the Budget on the September 23, 2008 City Council agenda. PASSED AND APPROVED this the _~ day of ~?~~ , 2008. •~6 ~ ~ S:\Our Documents\Resalutions\08\vote on budget.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: (' APP VED AS LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Council Member Mark A. Burroughs, Mayor Charlye Heggins Rudy Moreno Jack Thomson Chris Watts Pete Kamp, Mayor Pro Tem Joe Mulroy, Voted For Voted Against >/ >/ Page 2 RESOLUTION s:\our documents\resolutions\08\rrm res 08 27 08.doc RESOLUTION NO. 2OOv~ 0.~~ A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING A CHANGE IN THE TARIFFS OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION ("ATMOS") AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES ("ATM"); FINDING THAT THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FIlVDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTNE DATE; AND REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Denton ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation -Mid-Tex Division ("Atmos") rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has participated in prior cases regarding Atmos as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), including Railroad Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to Section 104.301 of GURA, GUD Docket No. 9670 and GUD Docket No. 9762; and WHEREAS, on February 11, 2008, ATM and Atmos entered into a settlement agreement which provided for a new mechanism to review changes in rates known as the "Rate Review Mechanism" or "RRM"; and WHEREAS, pursuant to the new regulatory mechanism Atmos filed for an increase in rates of approximately forty-t~vo million dollars ($42 million), to be effective on October 1, 2008; and WHEREAS, the RRM is a three-year experiment which is aimed at reducing rate case expenses and encouraging a more collaborative effort at arriving at just and reasonable gas rates; and WHEREAS, for over three months the experts representing ATM have been analyzing data and interviewing Atmos' management; and WHEREAS, ATM's experts have concluded that slightly less than half of the amount requested by Atmos should be put into rates; and WHEREAS, Atmos has agreed to reduce its requested increase in rates by more than fifty percent (50%); and WHEREAS, in connection with this • first RRM, the customer charge for residential customers will be reduced from $10.69 to $7.00, benefitting thousands of fixed income and low- use customers; and s:\our documents\resolu[ions\08\rrm res 08 27 08.doc WHEREAS, in connection with the implementation of this rate request, an energy conservation program will be instituted to benefit customers of modest means; and WHEREAS, the Steering Committee of ATM and its lawyers recommend approval of the attached tariffs, set forth as Attachment A; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. SECTION 2. The amended tariffs in Attachment A are hereby adopted to become effective on October 1, 2008. SECTION 3. The proof of revenues in Attachment B, the average bill calculations, and the document entitled "Rate Review Mechanism - 1St Year of Effective Period -Allocation of Settlement Increase by Customer Class" has been relied upon in connection with the adoption of the amended tariffs. SECTION 4. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 5. This resolution shall become effective from and after its passage with rates authorized by the Attached Tariffs to be effective in accordance with the terms of the Settlement Agreement. SECTION 6. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LB J Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1120, Austin, TX 78701. PASSED AND APPROVED this the ~~ day of , 2008. M O ,MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Page 2 s:\our documents\resolutions\08\rrm res 08 27 08.doc APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Page 3 ATTACHMENT A AMENDED TARIFFS ATMOS ENERGY CORPORATION MID TEX DNiSION RRC TARIFF NO: 19843 REVISION NO: 0 RATE SCHEDULE:' R -RESIDENTIAL SALES .APPLICABLE TO: Entire Division {except Environs areas and the City of Dallas) EFFECTIVE DATE: 10!0112008 PAGE: 23 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery,. additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill wail be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Change Amount Customer Charge per Bill $ 7.00 per month Commodity Charge -All Mcf $2.24.10 per Mcf. Gas Gost Recovery: Plus an amount far.gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise Fee Adjustment Plus.an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required: Notice Service. hereunder and' the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/'13/2008 ATMOS ENERGY CORPORATION MID-TEX DNISION RRC TARIFF NO.: 19844 REVISION NO: 0 RATE SCHEDULE: C -COMMERCIAL SALES APPLICABLE TO: Entire Division (except Environs areas and the City of Dallas) EFFECTNE DATE: 10!01/2008 PAGE: 24 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf. Type of Service Where service of the. type desired by Customer is not already. available at the Point of Delivery, additional charges and special contracf arrangements between Company and Customer may be required prior to service being famished. Monthly Rate Customer's monthly bill will. be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill ~ 13.50 per month Commodity Charge -All Mcf $ 0.9809 per Mcf Gas Cost F2ecovery: Plus an amount for gas costs and upstream transportation costs calculated iri accordance rrvitFi Part {a) and Part (b), respectively, of Rider GCR. Weather Normalisation Adjustment: Plus or Minus an amount for weather normalization calculated iri accordance with Rider WNA. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRfVI. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service maybe required. Notice Service hereunder and the rates for services provided. are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION RRC TAR[FF NO: 19842 MID-TEX DIVISION REVISION NO: 0 RATE SCHEDULE: I -INDUSTRIAL SALES APPLICABLE TO: Entire Division (except Environs areas and the City of Dallas} EFFECTNE DATE: 10(0912008 PAGE: 25' Application Applicable to Industrial Customers with a maximum daily usage .(MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day wiil be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service tieing furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge perMeter $ 425.00 per month First 0 MMBtu to 1,500 N1MBtu $ 0.2733 per MMBtu Next 3,500 MMBtu $ 0.1993 per MMBtu All MNIBtu over 5,000 MMBtu $ 0.0427 per MMBtu Gas Cost Recovery` Plus an amount. for gas costs. and upstream. transportation costs calculated in accordance with Part (a) and. Part (b}, respectively, of Rider GCR: Rate Review Nteehanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise .F.ee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits: This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the appl'~cable rider(s}. Curtaitmerit Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy poinf listed iri Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price 5urvey." Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION RRC TARIFF NO: 19842 REVISION NO: 0 RATE SCHEDULE: I -INDUSTRIAL SALES APPLICABLE TO: Entire Division (except Environs areas and the City of Dallas) EFFECTNE DATE: 90/0112008 .PAGE: 26 Replacement tndez Iri the event the "midpoint o~ "common° price for the Katy point listed in Plaits Gas Daily iri the table entitled "Daily Price Survey° is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement Ari Agreemenf for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13!2008 ATMOS ENEf2GY COi2PORATION RRC TARIFF NO: 19845 MID-TEX DIVISION REVISION NO: 0 RATE SCHEDULE: T -TRANSPORTATION APPLICABLE TO: Entire Division (except Environs areas and the City of Dallas) EFFECTIVE DATE: 10/01/2008 PAGE: 2T Application Applicable, in the event that Company has entered Into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp.,. Mid-Tex Division Distribution System (Customer) for the transportation. of all natural gas supplied by Customer or Customer's agent at ane Point of Delivery for use in Customer's facility: Type of Service Where service of the type desired by Customer is not already available at the Point ofDelivery, additional charges and special confract arrangements between Company and Customer may be required prior to service being furnished. Mon#hly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed. below: Charge. Amount Customer Charge per Meter $ 425.00 per month First 0 MNIBtu to '1,500 MMBtu $ 0.2733 per MMBtu Next 3,500 MMBtu ~ 0.1893 per fVIMBtu All MMBtu over 5,000 MMStu $ 0.0427 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation .costs in accordance with Part (bj of Rider GCR: Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment:. Plus an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated irr accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). imbalance Fees All fees charged to Customer under this Rafe Schedule. will be charged based on the quantities determined under the applicable Transportation Agreement.and quantifies will not be aggregated for any Customer with multiple Transportation Agceements~for the purposes of such fees. Issued 13y: David J. Park Vice President, Rates and Regulatory Affairs Dale Issued: 08/13/2008 ATMOS ENERGY CORPORATION RRC TARIFF NO: 19845 MID-TEX DIVI$iON REVISION NO: 0 RATE SCHEDULE: T-TRANSPORTATION APPLICABLE TO: ~ Entire Division {except Environs areas and the City of Dallas) EFFECTIVE DATE: 10/01!2008 PAGE: 28 Monthly Imbalance Fees Customer shall pay Company the greater of {i) $0.10 per MMBtU, or {ii) 150°k of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in P/atfs Gas Daily in the table entitled `Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as det7ned in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities'for the month. Curtailment Overpull Fee Upon notification by~ Company of an event of curtailment or interruption of Customers deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point fisted in P!efts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement lndex In the event the "midpoint° or "common° price for the Katy point listed in Plaits Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas Industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13!2008 ATlti'IOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER: GCR -GAS COST RECOVERY APPLICABLE TO: Entire Division EFFECTIVE DATE: 10/01/2006 PAGE: 40 Applicable to Rate R, Rate C., and .Rate I for al{ gas sales made by Company, and applicable to Rate R, Rate C, Rate I, and Rate T for recovery of Pipeline Systerri costs. The total gas cost recovery amount due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated in Section (b) belovr. The amount due for gas cost {Section (a)) is determined by multiplying the Gas Cost Recovery Factor (GCRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will be calculated on a Mcf basis. For Customers receiving service under Rate I; monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to recover actual gas costs. The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor {PCF) by the Customer's monthly volume. Far Customers receiving service under Rate R and Rate C, monthly volume will be calculated an an Mcf basis. For Customers receiving service under Rate I and Rate T, monthly volume will be calculated on an MMBtu basis and the' quantifies will be adjusted as necessary to recover actual gas costs. (a) Gas Cost Method of Calculation The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF), as determined with the following formula: GCRF =Estimated Gas Cost Factor (EGCF} + Reconciliation Factor (RF) + Taxes (TXS) EGCF =Estimated cost of gas, including lost and unaccounted for gas attributed to residential, commercial, and industrial sales, and any reconciliation balance of unrecove~ed gas costs, divided by the estimated total residential, commercial, and industrial sales. Lost and unaccounted for gas is limited to 5%. RF =Calculated by dividing the difference between the Actual Gas Cost.lncurred, inclusive of interest over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed over that same twelve-month period by the estimated total residential, commercial, and industrial sales for the succeeding October through Jurie billing month"s. The interest rate to be used is the annual interest rate publ'~shed by the PUC every December. The interest rate of~2008 is 4.89%. Actual Gas Cost Incurred =The sum of the costs booked in Atrrios Energy Corp., Mid-Tex Division account numbers 800 through 813.and 858 of the FERC Uniform System of Accounts, including the net impact of injecting and withdrawing gas from storage. Also includes a credit or debit for any out-of-period. adjustments or unusual or nonrecurring costs typically considered gas costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees. Actual Gas Cost Billed =EGCF rimultiplied by the monthly volumes billed to Residential, Commeraal and Industrial Sales customers, less the total amount of gas cost determined fo have been uncollectible and written off which remain unpaid for each month of the .reconciliation period. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER: GCR -GAS COST RECOVERY APPLICABLE TO: Entire Division EFFECTIVE DATE: 10/01/2008 PAGE: 41 Any amount remaining in the reconciliation balance after the conclusion of the period of amortization will be maintained in the reconciliation balance and included in the collection of the next RF. Atmos Energy shall file annual reports with the Commission, providing by month thefollowing amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off, Gas Cost Co{iected and Margin Collected. TXS =Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by the estimated total residential, commercial, and industrial sales. ADJ =Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the estimated total residential, commercial, and industrial sales is to be fnclucied as a separate line item surcharge. (b) Plpeltne Cost Method of. Calculation Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class listed below. The formula for the PCF is: PCF = PP / S, where: PP _ (P - A) x D, where: P =Estimated monthly cost of pipeline service calculated pursuant to Rate CGS D =Pipeline service allocation factor for the rate class as approved in the Company's most recent rate case, as follows: Pi eline Cost Rate.Class. Allocation Factor D Rate R -Residential Service .634698 Rate C -Commercial Service .302824 Rate I - Indus#rial Service and Rate T ~= Trans ortation ServJce .062478. _. . A~=Adjustment applied in the cun'ent month to correct for the difference between the actual and estimated pipeline cost revenue of the second preceding month, calculated by the formula: A = R.- {C - A2), where: R = Ac#ual revenue received from the application of the PP component in the second preceding month. C =Actual pipeline costs for the second preceding month. A2 =The adjustment (A) applied to the PP component in the second preceding month. Issued By: David J. Panic Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 AT1UiOS ENERGY CORPORATION MtD-TEX DNISION REVISION NO: 0 RIDER: GCR -GAS COST RECOVERY APPLtCA6l.E T0: Entire Division EFFECTNE GATE: 10!01/2008 PAGE: 42 S =Estimated Mcf or MMBtu for the rate class for the current billing month. The PCF is calculated to the nearest 0.0001 cent. The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the appropriate PCF. The Pipeline Cost is determined to the nearest whole cent. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER: FF -FRANCHISE FEE ADJUSTMENT APPLICABLE TO: Entire Division EFFECTNE DATE: 1D/01120D8 PAGE: 43 Application Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a municipal franchise fee upon Company for the Gas Service provided to Customer. Franchise Fees to be assessed solely to customers within the municipal IEmits. This does not apply to Environs customers. Monthly Adjustment Company. will adjust Customer's bill each month in an amount equal to the municipal franchise fees payable for the Gas Service provided to Customer by Company. Municipal franchise flees are determined by each municipality's franchise ordinartc?. Each municipality's franchise ordinance will specify the percentage and applicability of franchise fees. From time to time, Company will make further adjustments to Customer's bill to account for any over- or under-recovery of municipal franchise fees by Company. tssued By:. David J_ Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2A08 TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DNISION RtDEFt: Rider WNA -Weather Normalization Adjustment APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 11/0112008 PAGE: 1 OF 2 RIDER WfdA -Weather MormaEization Adiustmenf Provisions for Adiustment The base rate per fdlcf (1,000,000 Bfu) for gas service set forth in any Rate Schedules utilized by.the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential, and comrriercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adlushnent The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Mcf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri -- (Blti + (HSFi x ADD) ) Where i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Mcf Ri = base rate of Temperature sensitive sales for the ith schedule or classification approved by the entity exercising original jurisdiction. HSFi = heat sensitive factor fnr the ith schedule or classification calculated as the slope of the linear regression of average sales per bill (Mcf) and actual heating degree days: by month for the test year'by schedule or classification and weather station as part of the RRM filing. NOD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales far the ith schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA, = WNAF~ x qt TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID TEX DIVISIOPI RATE SCHEDULE: Rate WNA -Weather Normalization Adjustment APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REV[SlON: DATE: EFFECTNE DATE: 'i1/0112008 PAGE: 2 OF 2 Where q~ is the relevant sales quantity for the jth customer in ith rate schedule. F'ilinos with Entities Exercising Original_Jurisdiction As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such Weather Normalization Adjustment and (d) a random sample and~audit of thirty (30) actual customer bills, with customer information deleted, for each rate schedule or classification to which the WNA was applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA application, such data will be provided by the Company as part of the annual RRM filing. If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be filed with the entities exercising original jurisdiction shall be filed on March 1 of each year. Base Use/Heat SehsitivitV (HSF) Factors Residential Commercial Base use HSF Base use HSF tue~Ehe. e~~~;..., 11Mf M~f!{-Inn Mrf Mrf/Hnrl Abilene 1.27 ~ .0130 10.93 .0638 Austin 1.29 ( .0133 1.8.47 .0641 Dallas 1.79 .0186 20.83 .0878 1Naco 1.30 .0141 11.4.1 .0617 Wichita Falls 1.35 .0143 11.62 .0540 Sample WIVAF; Calculation: 1533 per Mcf = Where (.0131 x 1.2267 x (1.14 + (.0131 x 17) ) 1 = Residential Single Block Rate Schedule Ri = 1.2267 per MCF (Rate R -Final Order GUD.No. 9670) HSFi = .0131 (Residential -Abilene Area) NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area - 9115/46 -10114106) ADD = 17 HDD (Actua! HDD for Abilene Area - 9115706 -1 0!14/06) (30-17) ) BLi = 1.14 Mcf (Residential -Abilene Area) ATMOS ENERGY CORPORATION MID-TEX DNISION REVISION NO: 0 RIDER: CEE - CONSERVATION ~ ENERGY EFFICIENCY APPLICABLE TO: Entire Division EFFECTIVE DATE: 1!7/0112008 PAGE: 58 Puraose Atmos Energy Mid-Tex is proposing to institute a complete Conservation & Energy Efficiency program which will offer assistance to qualified customer segments in reducing energy consumption and lowering energy utility bills. The proposal is one where Atmos Energy shareholders will fund a percentage of the allowable expenses incurred annually, with a customer rate component provid€ng the remainder of~ the funding. Following is ahigh-level, concept summary of the proposal. Atmos Energy Mid-Tex Division proposes to work with the communities it serves to develop the details of a new tariff and programs addressing conservation and energy efficiency. Synopsis: Voucher system to provide free energy savings materials and supplies to qualifying customers of Atinos Mid-Tex. Qualified Custorrters will receive up to two hundred dollars ($200.00) worth of caulking, weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving. devices such as clock-thermosta#s:,. set-back devices {°covered items°) from approved suppliers /retailers. Company will undertake efforts to enlist support from community groups, including its own Employee Action Program, to assist customers with installation. If it. is determined that professional installation capabilities are necessary, the parties will agree on labor assistance amounts. Eli ibiii Low Income -Low-income rate-payers that qualify for heating bill .assistance through LIHEAP agencies and all agencies that distribute Atmos °Share the Warmth" funds. Agencies !fiat allocate assistance fuhds denote customer as Low Income, a status that lasts for one year: Senior Citizen -Primary account holder can request eligibility through ATM call center or web-site. Customer provides primary SSN which is verified #hrough Social Security Administration. And account. holder that is or turns 65 years old in~that year becomes eligible. Fundin Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will contribute one million dollars ($1,000,000.00) to .this initiative annuaity with ratepayers providing one million dollars ($1,000,000.00) per year. It is proposed that the program operate on. an October 1 through September 30 year; with benefits being capped at the two million dollar level for the initial program period. Administration: A third-party administrator will coordinate qualification of customers,. voucher distribution, subsequent verification and reimbursemenf of eligible expenditures and general program administration. Program administration expenses will be funded from the annual approved budget Audits wilt be provided all interested parties within 120 days of the end of each program year to determine effectiveness. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION N0: 0 RIDER: CEE.-CONSERVATION & ENERGY EFFICIENCY APPLICABLE TO: Entire Division EFFECTIVE DATE: 10/01/2008 PAGE:- 59 ReQOrt Afmos shall file an annual report detailing cost to administer ttie program with details of the amounts paid ouf of program for energy conversation assistance. The report shall also detail number of appiicanfs, number rejected and accepted and reason rejected. The report shall be filed with the Gas Service Director. Issued By: David J..Park Vice President, Rates and Regulatory Affairs Date Issued: 0 8/1 312 0 0 8 ATTACHMENT B PROOF OF REVENUES AND AVERAGE BILL COMPARISON ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference (a) (b) (c) Rate R 1 Rate Characteristics: 2 Customer Charge 3 2007 RRM True-up 4 5 Consumption Charge ($/Mcf) 6 7 Rider GCR Part A 8 Rider GCR Part B 9 10 Billin4 Units (1 ): 11 Bills 12 Total MCF 13 14 Present Revenue: RRM Settlement Tariff, $10.69 Rate R $0.00 RRM Settlement Tariff, $1.2710 Rate R $8.1244 Schedule H $0.6243 schedule t 17,069,679 Billing Determinants Study 78,708,921 Billing Determinants Study 15 Customer Charge $ 182,474,869 16 2007 RRM True-up - 17 Consumption Charge 100,039,039 18 Base Revenue $ 282,513,907 19 Rider GCR Part A 639,460,135 20 Rider GCR Part B 49,140,231 21 Subtotal $ 971,114,273 22 Revenue Related Taxes 58,440,682 23 24 Total Present Revenue- Rate R $ 1,029,554,955 25 26 Note 1: See Billing Determinants Study for details. ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference (a) (b) (c) Rate C 1 Rate Characteristics: 2 Customer Charge 3 2007 RRM True-up 4 RRM Settlement Tariff, $20.28 Rate C $0.00 RRM Settlement Tariff, 5 Consumption Charge ($/Mcf) $0.7104 Rate C 6 7 Rider GCR Part A $8.1244 Schedule H 8 Rider GCR Part B $0.5228 Schedule I 9 10 Billing Units t1): 11 Bills 1,434,516 Billing Determinants Study 12 Total MCF 50,233,642 Bilging Determinants Study 13 14 Present Revenue: 15 Customer Charge $ 29,091,984 16 2007 RRM True-up - 17 Consumption Charge 35,685,979 18 Base Revenue $ 64,777,964 19 Rider GCR Part A 408,116,524 20 Rider GCR Part B 26,261,046 21 Subtotal $ 499,155,534 22 Revenue Related Taxes 30,038,679 23 24 Total Present Revenue- Rate C $ 529,194,213 25 26 Note 1: See Billing Determinants Study for details. ATMOS ENERGY CORP., MID-TtJC DIVISION SUMMARY PROOF OF REVENUE AT CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference (a) (b) (c) Rate 18T 1 2 3 4 5 6 7 8 9 10 11 12 i3 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 Rate Characteristics: Customer Charge 2007 RRM True-up Block 1 ($/MMBTU) Block 2 ($/MMBTU) Block 3 ($/MMBTU) Rider GCR Part A Rider GCR Part B Consumption Characteristics: Block 1 Block 2 Block 3 Billin4 Units (1): Bills Block 1 Block 2 Block 3 Total MMBTU Sales Volumes Present Revenue: Customer Charge 2007 RRM True-up Block 1 Block 2 Block 3 Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Present Revenue- Rate I&T RRM Settlement, Rate I & $425.00 T $0.00 RRM Settlement, Rate I & $0.1933 T RRM Settlement, Rafe I & $0.1410 T RRM Settlement, Rate I & $0.0302 T $8.1244 $0.2938 Schedule H Schedule I 0.23502 0.26655 0.49843 10,052 9,522,217 10,799,921 20,195,218 40,517,356 2,331,063 $ 4,272,100 1,840,645 1,522,789 609,896 $ 8,245,429 18,494,542 11,902,411 $ 38,642,382 2,325,460 $ 40,967,841 Note 1: See Billing Determinants Study #or details. (~) (~ ) (1} Billing Determinants Study Billing Determinants Study Biling Determinants Study Billing Determinants Study ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference (a) (b) {c) Rate R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rate Characteristics: Customer Charge Consumption Charge ($/Mcf) 2007 RRM True-up {$/Mcf) Rider GCR Part A Rider GCR Part B Billing Units (1): Bills Total MCF Proposed Revenue: Customer Charge Consumption Charge Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Proposed Revenue- Rate R RRM Settlement Agreement, $7.00 Pg 2, Item 5 $2.1600 $0.0810 $8.1244 $0.6243 17,069,679 78,708,921 $ 119,487,753 176,385,175 $ 295,872,928 _639,460,135 49,140,231 $ 984,473,295 59,244,614 $ 1,043,717,909 Note 1: See Billing Determinants Study for details. Settlement Allocation Settlement Allocation Schedule H Schedule I WP J-1.1 WP J-1.1 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference Rate C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rate Characteristics: Customer Charge Consumption Charge ($/Mci) 2007 RRM True-up ($/Mcf) Rider GCR Part A Rider GCR Part B Billing Units (1): Bills Total MCF Prot~osed Revenue: Customer Charge Consumption Charge Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Proposed Revenue- Rate C RRM Settlement Agreement, $13.50 Pg 2, Item 5 $0.9442 $0.0367 $8.1244 $0.5228 1,434,516 50,233,642 $ 19,365,966 49,273,373 $ 68,639,339 408,116,524 26,261,046 $ 503,016,909 30,271,052 $ 533,287,962 Note 1: See Billing Determinants Study for details. Settlement Allocation Settlement Allocation Schedule H Schedule I WP_J-1.2 WP_J-1.2 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference (a} (b) (c) Rate 18T 1 Rate Characteristics: 2 Customer Charge $ 425.00 Settlement Allocation 3 4 Block 1 ($/MMBTU) $0.2352 Settlement Allocation 5 Block 2 ($/MMBTU) $0.1715 Settlement Allocation 6 Block 3 ($/MMBTU) $0.0367 Settlement Allocation 7 2007 RRM True-up ($/MMBTU): Settlement Allocation 8 Block 1 ($/MMBTU) $0.0381 9 Block 2 ($/MMBTU) $0.0278 10 Block 3 ($/MMBTU) $0.0060 11 Rider GCR Part A $8.1244 Schedule H 12 Rider GCR Part B $0.2938 Schedule I 13 14 Consumption Characteristics: 15 Block 1 (First 1,500 MMBTU) 0.23502 ~~~ 16 Block 2 (Next 3,500 MMBTU) 0.26655 (1) 17 Block 3 (C+ver 5,000 MMBTU) 0.49843 (1) 18 19 Billing Units (1): 20 Bills 10,052 WP J-1 21 Block 1 9,522,217 WP_J-1 22 Block 2 10,799,921 WP_J-1 23 Block 3 20,195,218 WP_J-1 24 Total MMBTU 40,517,356 25 26 Sales Volumes 2,331,063 WP_J-1 27 28 Proposed Revenue: 29 Customer Charge $ 4,272,100 30 Block 1 2,602,422 31 BIoGc 2 2,152,424 32 Block 3 862,336 33 Base Revenue $ 9,889,282 34 Rider GCR Part A 18,494,542 35 Rider GCR Part B 11,902,411 36 Subtotal $ 40,286,235 37 Revenue Related Taxes 2,424,385 38 39 . Total Proposed Revenue- Rate 18~T $ 42,710,620 40 41 Note 1: See Billing Determinants Study for details. ATMOS ENERGY CORP., MID-TEX DNISION RATE REVIEW MECHANISM -1ST YEAR RATE EFFECTNE PERIOD ALLOCATION OF SETTLEMENT INCREASE BY CUSTOMER CLASS Line Allocated Total True-Up Prospective No. Customer Class Settlement Increase ~'} Amount ~'~ Amount i'~ (a) (b} (c) (d) 1 Residential $ 14,164,235 $ 6,373,906 $ 7,790,329 2 Commercial 4,095,041 1,842,769 2,252,273 3 Industrial 8~ Transportation 1,740,723 783,326 957,398 4 Total $ 20,000,000 $ 9,000,000 $ 11,000,000 5 6 Note 1: Includes Pass-thru Taxes. ATMOS ENERGY CORP., MID-TEX DMSION REVENUE REQUIREMENTS BY SERVICE CLASS TEST YEAR ENDING DECEMBER 31, 2007 Une No. Description Current Revenues Proposed Revenues 1 Proposed Change Percent Change (a) (b) (c) (d) (e} 1 Total Residential $1,029,554,955 $1,043,717,909 $14,162,954 1.38% 2 Total Commercial 529,194,213 533,287,962 4,093,749 0.77% 3 Total lndustriaVTransportation 40,967,841 42,710,620 1,742,778 4.25% 4 Total Other Revenue 17,199,870 17,199,870 - 0.00% 5 Total Operating Revenues $1,616,916,878 $1,636,916,360 $19,999,481 1.24% 6 7 Note: $ 1 Proposed Revenues are the resuR of the appECation of the proposed rates to b~4ig determErards r. Errata l~ i Rate R ~ a.s Mcf 2 Customer diarge 3 Consu:npSoncharge 4 Rider GCR Part A 5 Rider GCR Part B 6 7 Subtota! 8 Rider FF 8 Rider TAX 9 Total 10 11 Custartierdrarga 12 Consumption charge 13 Rider GCR Part A 14 Rader GCR Part B 15 16 Sub~~l 17 Revenuerelafed Tax Reimbursement 18 Total 19 20 21 Rate C r~ 3li.3 Ma 22 Customer charge 23 Constunptiorl charge 24 Rider GCR Part A 25 Rider GCR Part B 2b Z7 28 Subtotal 29 Reverwe•related Tax Reimixasemerit 30 Tatal 31 32 Custorrrercharge 33 Consumption charge 34 Rider GCR Part A 35 Rider GCR Part B 36 37 SuMotal 38 Revernre-re4~ted Taz Refmtxmemerd 39 Total 40 41 ReM 1 ~ 4031 MMBTU 42 Cusloarer drarge 43 Consumption dtarge 44 Consumpton dterge 45 Conuumption charge 46 Rider GCR Part A 47 Rider GCR Part B 48 49 Subtotal 50 Ravarwe-related Talc Reimbursemera 51 Total 52 53 Customer charge 54 Consumption oharpe 55 Cor>tumpikn dmrge 58 Consumption ctwga 57 Rider GCR Part A 58 Rider GCR Part B 59 SuMotal 60 Revenue elated Tax Reimbursement 61 Trial 62 63 Rafe T ~t 4031 MMBTU 64 Customer charge 65 Consumption charge 66 Consranplloncharge 67 Consumption charge 68 Rider GCR Pert B 69 70 Subtotal 71 Reverure-related Tax Refmb~ent 72 Tort T3 74 Custarnercharge 75 Consumption duuge 7S Consumption chrffge n Corut.rwuen 78 Rider GCR Part B T9 Subtotal 80 Revenue{elated Tax Reimbursement 81 Total ATMOS EWERGY CORP., MID-TEX DNISION AVERAGE BILL COMPARISON TEST YEAR ENDING DECEMBER 31, 2007 WP_J3.2 (Avg Cull) rase s a 9 CURRENT PROPOSED 510.69 4.6 MCF X 51.2710 = 5.85 4.6 MCF X $8,1244 = 37.37 4.6 A1CF X 50.6243 2.87 556.78 $56.78 X 0.06018 = 3.42 560.211 E7.00 4.6 MCf X 522410 10.31 4.6 MCF X 58.1244 = 37.37 4.6 MCF X 50.6243 = 2.67 557.55 $57.55 X 0.06018 = 3.46 861.01 CURRENT PROPOSED 52028 35.3 MCf X 50.7104 = 25.04 35.3 MCf X $8.1244 • 286.40 35.3 MCF X $0.5228 = 18.43 5350.15 $350.15 X 0.06078 = 21.07 $37122 513.50 35.3 MCF X 50.8809 34,58 35.3 MCF X $6.1244 = 286.40 35.3 MCF X 50.5228 = 18.43 5352.91 E352.91 X 0.06018 = 2124 5374.15 CURRENT PROPOSED 5425.00 1,500 MMBTU X 50.1933 = 289.95 2,531 MMBTU X 50.1410 356.84 0 MMBTU X 50.0302 0.00 4,031 MMBTU X 58.1244 = 32,747.50 4,031 MMBTU X 502938 1,184.08 535,003.37 536,003.37 X 0.06018 = 2,108.47 537,109.84 S 425.00 1,500 MMBTU X 502733 409.95 2,531 MIABTU X 50.1993 504.38 0 MIABTU X 50.0427 = 0.00 4,037 MMHTU X 58.1244 = 32,747.50 4,031 MMBN X 50.2938 = 1.184.08 535,270.81 535,270.91 X 0.06018 = 2,12257 537,393.48 CURRENT PROPOSED 5425.00 1,500 MMBTU X 50.1933 = 289.&5 2,537 MMBTU X 50.1410 = 356.84 0 MMBTU X 50.0302 = 0.00 4,037 NUABTU X 50.2938 1,184.08 52,255.87 52,255.87 X 0.06018 = 135.76 $2,391.63 S 425.00 1.500 MMBTU X $0.2733 = 409.95 2,531 MMBTU X $0.1993 = 504.38 o MMBTU x so.o427 = o.oo 4,031 Mt+/83TU X 50.2938 = 1.184.08 $2,523.41 52,523.41 X 0.06018 = 151.88 52,675.27 RESOLUTION S:\Our Documents\Resolutions\08\vote on tax rate2.doc RESOLUTION NO. ~~Qg ~~~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ANNOUNCING THAT IT WILL VOTE ON A TAX RATE THAT WILL RESULT IN A TAX REVENUE INCREASE AT ITS MEETING OF SEPTEMBER 23, 2008; PROVIDING FOR PUBLICATION OF NOTICE OF SUCH VOTE ON THE TAX RATE; PROVIDING A RATIFICATION CLAUSE; AND PROVIDING AN EFFECTNE DATE. WHEREAS, at its meeting of August 19, 2008, the City Council of the City of Denton, Texas (City) voted to place a proposal on the September 23, 2008 City Council agenda to adopt a proposed tax rate of 50.66652 per 5100 valuation, which will exceed the lower of the rollback rate or the effective tax rate; and WHEREAS, the City Secretary duly recorded the vote of the City Council on that matter; and WHEREAS, the City Council also called two public hearings on the tax increase, the first for its meeting of September 9, 2008 and the second on September 16, 2008; and WHEREAS, publication of notice of two public hearings on the tax increase were made in accordance with the law, and hearings were held on September 9, 2008 and September 16, 2008, and all proponents and opponents of the tax increase were given an adequate opportunity to present their views at the public hearings; and WHEREAS, at the public hearings the City Council announced the date, time and place of the meeting at which it will vote on the proposed tax rate; and WHEREAS, the City Council v~~ishes to finally set the date, time, and place of the meeting at which it will vote on the tax rate; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council will vote on the proposed tax rate of 0.66652 for each 5100 of taxable value that will result in a tax revenue increase at its meeting of September 23, 2008, which will commence at 6:30 p.m. and will be held in the City Council Chambers at City Hall at 215 East McKinney Street, Denton, Texas 76201. SECTION 3. Prior to the vote on the proposed tax rate, the City Manager, or his designee, is directed to publish in the Denton Record-Chronicle, a newspaper having general circulation in the City, the attached Notice of Tax Revenue Increase, which is made a part of this Resolution for all purposes. Such publication to be in compliance with the requirements of the Texas Property Tax Code (Tax Code) and other applicable law. The City Manager, or his designee, is directed to post the attached Notice of Tax Revenue Increase on the City's Internet S:\Our Documents\Resolutions\08\vote an tax rate2.doc website and shall request that the City's public access television channel to carry a 60-second Notice of Tax Revenue Increase at the times and for the periods and in accordance with the requirements of the Tax Code and other applicable law. SECTION 4. The City Council ratifies and approves the form of the Notice of Public Hearing on Tax Increase as published in the Denton Record-Chronicle on August 31, 2008 and the actions of the City Manager or his designee in publishing same. SECTION 5. This Resolution shall become effective immediately upon its passage and approval at the meeting of the City Council of the City of Denton, Texas on this the 16th day of September, 2008, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et sey. The City Secretary is hereby advised to record this Resolution and the vote on the proposal to place the item for a vote on the tax rate that will result in a tax increase on the September 23, 2008 City Council agenda. PASSED AND APPROVED this the ~ day of ~ , 2008 t~ MARK A. B S, YOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO D AS LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Council Member Mark A. Burroughs, Mayor Charlye Heggins Rudy Moreno Jack Thomson Chris Watts Pete Kamp, Mayor Pro Tem Joe Mulroy, Voted For Voted A ainst f Page 2 Publish in September 19, 2008 Denton Record Chronicle Notice of Tax Revenue Increase The City of Denton, Texas conducted public hearings on September 9, 2008 and September 16, 2008 on a proposal to increase the total tax revenues of the City of Denton, Texas from properties on the tax roll in the preceding year by 0.23 percent. The total tax revenue raised last year at last year's tax rate of $0.66652 for each $100 of taxable value was $40,587,734. The total tax revenue proposed to be raised this year at the proposed tax rate of $0.66652 for each $100 of taxable value, excluding tax revenue to be raised from new property added to the tax roll this year, is $40,728,659. The total tax revenue proposed to be raised this year at the proposed tax rate of $0.66652 for each $100 of taxable value, including tax revenue to be raised from new property added to the tax roll this year, is $41,933,167. The City Council of the City of Denton, Texas is scheduled to vote on the tax rate that will result in that tax increase at a public meeting to be held on September 23, 2008 at the City Council Chambers in City Hall, 215 E. McKinney Street, Denton, Texas 76201 at 6:30 p.m. RESOLUTION s:\our documents\resolutions\08\oncor denial resolution.doc RESOLUTION NO. ~OD~'O,3ly A RESOLUTION OF THE CITY OF DENTON, TEXAS ("CITY") DENYING THE RATE INCREASE PROPOSED BY ONCOR ELECTRIC DELIVERY COMPANY, LLC ("ONCOR"); FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTNE DATE. WHEREAS, oncor filed an application with the City Secretary on June 27, 2008 for an increase in rates of $275 million. The City has suspended the effective date until October 30, 2008; and WHEREAS, the City has joined with a coalition of cities known as the Alliance of TXU/oncor Customers ("ATOC"); and WHEREAS, the application to increase rates by oncor ("Statement of Intent") has a been filed at the Public Utility Commission of Texas ("PUC"); and WHEREAS, the date for filing ATOC's testimony has been set by the PUC for November 26, 2008; and WHEREAS, the experts hired by ATOC have not finished their review of the thousands of pages of responses to discovery; and WHEREAS, it is necessary for the City to act before October 31, 2008 on Oncor's rate request; and WHEREAS, the experts hired by ATOC have preliminarily concluded that the size of the rate increase is not justified; and WHEREAS, based upon the preliminary review of the City's and ATOC's experts the requested rate increase should be denied; THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set out in the preamble to this resolution are in all things approved and adopted. SECTION 2. The City hereby denies Oncor's request to increase rates and in support thereof finds that: a. The Statement of Intent fails to provide sufficient information to justify the requested increase in rates or to justify the changes set forth in the attached tariffs; b. As a preliminary matter, the requested increases for depreciation, storm reserve, and pensions appears excessive. s:\our documents\resolutions\08\oncor denial resolution.doc SECTION 3. The City Secretary shall notify Oncor by sending copy of same to Don J. Clevenger, Oncor Electric Delivery Company LLC, 1601 Bryan Street, Suite 22-070, Dallas, Texas 75201-3411 and ATOC shall be notified by sending a copy to Jim Boyle, Herrera & Boyle, PLLC, Suite 1250, 816 Congress Avenue, Austin, Texas 78701. SECTION 4. That the meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 5. This Resolution shall become effective from and after//irrts passage. PASSED AND APPROVED this the ~l~ day of ~4~ , 2008. MARK A. B~C~UCyI'IS, `~VIAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED AS O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ~ ~~ ~ -i v Page 2 RESOLUTION s:\our documents\re~olutions\08\north texas higher education authority.doc RESOLUTION NO. Od 'Dc~ / A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE NORTH TEXAS HIGHER EDUCATION AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for Places 2 and 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. have expired; and WHEREAS, the Board has nominated Mr. Governor Jackson -Place 2 and Mr. Daniel Tonn -Place 4 on the Board; NOW, THEREFORE, - THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Mr. Governor Jackson is hereby reappointed to Place 2 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2008 and continuing through September 30, 2010. SECTION 2. Mr. Daniel Tonn is hereby reappointed to Place 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2008 and continuing through September 30, 2010. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~}' ~ day of /~~~i~~ , 2008. M A. BURROU , S, MAYOR ATTEST: JENI~~ER WALTERS, CITY SECRETARY BY: APPR VED AS O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: .r ~ l-~ 4 RESOLUTION S:\Our DocumentsUtesolutions\OS\Appraisal Review Board 2008.doc RESOLUTION NO. - O A RESOLUTION NOMINATING MEMBERS TO THE APPRAISAL REVIEW BOARD OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for various Appraisal Review Board members of the Denton Central Appraisal District will expire on December 31, 2008; and WHEREAS, the City of Denton, Texas wishes to nominate members to said Board; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas, hereby nominates William Haskins, Wayne Gillum, and Donald Miller, as members to the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _~~-'- day of ~ , 2008. ATTEST: JENI~TIFER WALTERS, CITY SECRETARY BY: APPR VED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: . RESOLUTION , S:\Our Documents\Resolutions\08\Tarrant regional Trans Coal.doc RESOLUTION NO. ZOO - O A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPOINTING ONE MEMBER AS THE CITY'S REPRESENTATIVE TO THE TARRANT REGIONAL TRANSPORTATION COALITION (TRTC); AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Tarrant Regional Transportation Coalition (TRTC) is anon-profit membership organization that advocates for transportation improvements in the western half of the North Texas Metroplex and is committed to increased investments in transportation, enhancements to the region commuter and freight rail systems, preservation of air quality and the overall improvement in mobility for the region; and WHEREAS, as the Interstate 35-West corridor continues to develop, the City of Denton and Denton County will become more and more involved with planning and development efforts along this corridor and membership in the TRTC will enhance the City's role in the region and assist the City of Denton in advancing planning objectives along the Interstate 35-West corridor; and WHEREAS, the City Council deems it to be in the public interest to participate in the aforementioned activities of the TRTC and to appoint a representative thereto; and WHEREAS, the City Council deems it be in the public interest to appoint Chris Watts as the City's representative to the TRTC; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. The findings and recitations contained in the preamble of this Resolution are incorporated herein by reference. SECTION 2. Chris Watts is hereby appointed as the representative of the City of Denton, Texas to the TRTC. Chris Watts is qualified to serve on the TRTC as having professional experience in the field of transportation, business, government, engineering, or law. SECTION 3. The City Manager is hereby authorized to send a certified copy of this Resolution to appropriate officials of the TRTC. SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the S:\Our DocumentsUtesolutions\08\Tarrant regional Trans Coal.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED AS O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION S:\Our Documents\Resolutions\08\Resolution fort 1 lth Congressional Priority Projects (Dec. 9, 2008).doc RESOLUTION NO. 07 8 ~/~~ A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S 111T" CONGRESS, 1sT SESSION CONGRESSIONAL PRIORITY PROJECTS; AND PROVIDING AN EFFECTNE DATE. WHEREAS, the First Session of the 111`h Congressional Session is scheduled to convene in January 2009; and WHEREAS, our congressional delegation has made a request for congressional priority projects which are projects that are eligible for Federal funding; and WHEREAS, the City Council desires to approve the City of Denton's 111`h Congress, 1st Session Congressional Priority Projects, attached as Exhibit "1"; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton's 111`h Congress, 1st Session Congressional Priority Projects are approved as set forth in Exhibit "1," incorporated herein and made a part of this Resolution for all purposes. SECTION 2. The Mayor and City Council, City Manager, and the City Attorney, or their designees shall communicate the items included in the City of Denton's 111th Congress, 1st Session Congressional Priority Projects to members of our congressional delegation. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ ~~ da of ~ 2008. Y , C~~ MARK A. 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Ü®·ª·²¹ ­·³«´¿¬±®­ ¿²¼ üêððôðð𠬱 º«²¼ ¿¼³·²·­¬®¿¬·ª»ñ½´¿­­®±±³ ³«´¬·³»¼·¿ ¬»½¸²±´±¹§ò Ю±°±­»¼ ­·¬» °´¿² º±® λ¹·±²¿´ Ы¾´·½ Í¿º»¬§ Ì®¿·²·²¹ Ú¿½·´·¬§ Ü»²¬±² λ¹·±²¿´ Ы¾´·½ Í¿º»¬§ Ì®¿·²·²¹ Ú¿½·´·¬§ ß¼ª¿²½»¼ Ì»½¸²·½¿´ Ò»»¼­ üíôëððôððð Ë­» ±º Ú±®½» ¿²¼ Ü®·ª·²¹ ­·³«´¿¬±®­ ü êððôððð Ý´¿­­®±±³ ¿²¼ ¿¼³·²·­¬®¿¬·ª» ³«´¬·³»¼·¿ ¬»½¸²±´±¹§ üìôïððôððð ̱¬¿´ ß¼ª¿²½»¼ Ì»½¸²·½¿´ Ò»»¼­ Ú±® ³±®» ·²º±®³¿¬·±² °´»¿­» ½±²¬¿½¬æ Ы¾´·½ Í¿º»¬§ Ú®»¼ Ù®»»²» ß­­·­¬¿²¬ Ý·¬§ Ó¿²¿¹»® îïë Ûò Ó½Õ·²²»§ ͬò Ü»²¬±²ô ÌÈ éêîðï çìðóíìçóèíëì Ú®»¼òÙ®»»²»à½·¬§±º¼»²¬±²ò½±³ é Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿­ ó ©©©ò½·¬§±º¼»²¬±²ò½±³ Ю±¶»½¬ Í«³³¿®§ п¹» ÒÑÌÛÍ è п¹» Ю±¶»½¬ Í«³³¿®§ Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿­ ó ©©©ò½·¬§±º¼»²¬±²ò½±³ ìÇÚÐÓÉÔ×ØÚÃÈÔ×ùÓÈÃïÛÎÛÕ×ÊÉíÖÖÓÙ×  ÅÅÅÙÓÈÃÍÖØ×ÎÈÍÎÙÍÏ ûøû ÷í÷ ûø÷û èøø    RESOLUTION RESOLUTION NO. ADD A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON' S 2009 STATE LEGISLATIVE PROGRAM FOR THE 81sT TEXAS LEGISLATURE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 81St Texas Legislature will commence in January 2009; and WHEREAS, appraisal caps, revenue caps, general government, and many legislative issues affecting local government will be considered; and WHEREAS, the City of Denton desires to adopt its legislative program for the 81th Texas Legislature, attached as Exhibit "A"; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: SECTION 1. That the City of Denton's 2009 Legislative Program for the 81St Texas Legislature is adopted as set forth in Exhibit "A," incorporated herein and made a part of this resolution for all purposes. SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the state legislative program to members of the Texas Legislature. SECTION 3. The City Manager, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City council and City Staff and through other appropriate means. PASSED AND APPROVED this the 9`~ day of December 2008. ~~~ MARK A. BURROU ,MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO~/ED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ~ L~ .~ -~---- m~ I ~. Pte, „/mxh" r ~,~ ,.x~~ ~la~' ~~ ~ r ~ ~ ~ ~~~ ~ ~ ~ ~ ~ i ,~, rk, s b `' ~~. j , ~~, r~` F ~,: I ~5 ~r ~ ,~" ,rc ta' ~" ,.~Sf f1~~~:..:. qtr",,. ' f 4";'. ~ Y,,.M„ ~~, ~s9"~'. q' ~ f i s ~ ~ „~~' .~rra+^,~;~: ,~"~ ~~~ s.»~ua,~„~ro~_. a~~ar~r; ~ ~~w:,. ,~sre~~'4', w~ ~~hs~.:; ,; mow, rm.~;,;: n+rnffm~g,. F. ~' ~~ ~$ ~ , , F ., ,. ,' • . ~ r ~" ,I , ~~ ~l! , 45 i ~ii ~~', ' II' a ~~ , r ~„ ~ " Ili ~ t ~ ' ~ I I` 4 i +~ ~€' " III ~G~i R~~i~~ i ~mii' ii 1 ~ ''I i t }?~ "` o,r ~ i ~~~ ~. ~ x City of Denton 2009 State Legislative Program State of Texas st 81 Legislative Session As approved by the Denton City Council on December 9, 2008 TABLE OF CONTENTS City of Denton Mayor and Council Contact Information 2 City Manager, City Attorney and City Staff Contact Information 3 2009 State Legislative Program Adopting Resolution 4 General Legislative Policy 5 Denton’s Highest Legislative Priorities 6 Revenue and Taxation 7 Land Use Resource 11 Utilities 12 Transportation 14 Public Safety 15 General Government 17 City of Denton 2009 State Legislative Program October 9, 2008 Page1 City of Denton City Council Members Mailing Address for all of Council:215 E. McKinney, Denton, TX 76201 The City Hall Phone number for Council – 940-349-7717 Mayor Mark Burroughs Cell: 940-390-9702 mark.burroughs@cityofdenton.com Office: 940- 382-4357 Mayor Pro Tem– At Large Place 5 Pete Kamp Home: 940-566-5557 pete.kamp@cityofdenton.com Cell: 940-390-9137 Council Member – District 1 Charlye Heggins Home: 940-566-3479 charlye.heggins@cityofdenton.com Cell: 940-391-2339 Council Member – District 2 Rudy Moreno Home: 940-565-8301 rudy.moreno@cityofdenton.com Cell: 940-368-6228 Council Member – District 3 Jack Thomson Home: 940-382-5176 jack.thomson@cityofdenton.com Cell: 940-435-1943 Council Member – District 4 Chris Watts Cell: 940-391-4422 chris.watts@cityofdenton.com Council Member – At Large Place 6 Joe Mulroy Home: 940-382-3396 joe.mulroy@cityofdenton.com City of Denton 2009 State Legislative Program October 9, 2008 Page2 City Manager, City Attorney and City Staff The Denton City Council and staff are glad to provide information, research issues and testify on the City of Denton legislative issues. Municipal Offices: 940-349-8200 City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com George Campbell Anita Burgess City Manager City Attorney 940-349-8306 940-349-8336 george.campbell@cityofdenton.comanita.burgess@cityofdenton.com Howard Martin Jon Fortune Assistant City Manager Assistant City Manager 940-349-8232 940-349-8535 howard.martin@cityofdenton.comjon.fortune@cityofdenton.com Fred Greene John Cabrales Jr. Assistant City Manager Intergovernmental Relations Officer 940-349-8232 940-349-8509 fred.greene@cityofdenton.com john.cabrales@cityofdenton.com Lindsey Baker Assistant to the City Manager 940-349-8234 lindsey.baker@cityofdenton.com City of Denton 2009 State Legislative Program December 9, 2008 Page3 GENERAL LEGISLATIVE POLICY PRESERVE THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OF PRESERVATION As a general policy, the City of Denton seeks to preserve its current authority to govern the city, its citizens, and its property. The City will oppose any legislation viewed as detrimental to the City’s strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates increased costs or loss of revenues; or that would diminish the fundamental authority of the City. SUPPORT LEGISLATION THAT ADVANCES THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OF SUPPORT The City supports any legislation viewed as advancing the City’s strategic goals; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City’s authority to conduct the public's business. The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations. FORM COALITIONS WITH PARTIES THAT SHARE COMMON GOALS AND INTERESTS WITH THE CITY FORMATION OF COALITIONS The City will form strategic partnerships with cities, political subdivisions, and private sector entities that share common goals with the City of Denton. Additionally, the City will work in coordination with organizations such as the Texas Municipal League (TML) when their adopted positions are in line with the legislative objectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. City of Denton 2009 State Legislative Program December 9, 2008 Page5 Denton’s Highest Legislative Priorities The City of Denton has adopted the following legislative issues as priority st issues for the 81 Texas Legislative Session.The City Council of the City of Denton has met in workshops, participated in legislative seminars and has received information from city staff and various groups within the community to set these priorities. Continue to urge the legislature not to adopt any legislation, which would negatively affect City revenues and economic development efforts. legislation that would mandate a reduction in the Oppose o current 10% cap on annual appraisal growth. legislation that would impose a revenue cap of any Oppose o type, including a reduced rollback rate, mandatory tax rate ratification elections, lowered rollback petition requirements, or exclusion of the new property adjustment in effective rate and rollback rate calculations. legislation that imposes a property tax freeze that can Oppose o be implemented by any mechanism other than council action. legislation that would require that the adoption of a Oppose o new sales tax for property tax relief shall result in a lower property tax rollback rate for the adopting city. legislation that supports local control of budgeting Support o process and decisions. legislation that would enact any sales tax exemption that Oppose would substantially erode the sales tax base. legislation that would lengthen or broaden the scope of Oppose o the current sales tax holiday. any legislation that would impose a sales tax holiday Oppose o for textbooks. legislation that authorizes Transportation Management Support Areas within Texas to form Transportation Districts for the purpose of calling elections for voters to determine if they want to increase City of Denton 2009 State Legislative Program December 9, 2008 Page6 fees and taxes to fund a regional rail system and surface projects that will reduce regional congestion. legislation that would provide municipalities the authority to Support regulate and enforce zoning, building codes, and property maintenance codes within extraterritorial jurisdictions (ETJ). Revenue and Taxation legislation that would allow a council-option city homestead Support exemption of up to 30 percent. legislation that would require mandatory disclosure of real Support estate sales prices. legislation that would authorize the State of Texas to opt into Support the Sales Tax Streamlined Project. legislation that would allow municipalities to audit a Support taxpayer’s records for sales tax compliance, and ensures the equal tax treatment of taxpayers, regardless of their sales method. legislation that would significantly increase the threshold Support requirements for determining whether a warehouse, storage yard, or manufacturing plant can be considered a place of business of the retailer for sales tax sourcing. legislation that would require the Comptroller of Public Support Accounts to notify the affected municipalities and afford each the opportunity to hear and dispute the facts in accordance with established procedures prior to any reallocation of sales tax revenue. legislation that would require the Comptroller of Public Support Accounts to only make the reallocation of sales tax prospectively when the net impact is between multiple municipalities. legislation that would convert the sales tax reallocation Support process from a ministerial process into a more formalized administrative process that would, at a minimum, require prior notice to all affected parties and impose a time limit of three years on the right of a claimant to request a refund. City of Denton 2009 State Legislative Program December 9, 2008 Page7 legislation that would permit a local-option municipal court Support fee on convictions in Municipal court to be used to offset fuel costs. legislation that would clarify that only value lost to a Support senior/disabled tax freeze should be excluded from effective property tax rate calculations. legislation that would enact the following changes to Section Support 255.003 of the Texas Election Code (the statute prohibiting the use of public funds for political advertising): a.provide a clarification in the statute, or by Texas Ethics Commission rulemaking, of the meaning of “advocate” for purposes of the statutory prohibition, including (if possible) illustrative examples of legal and illegal content; b.provide that a member of a municipal governing body does not violate the statute if that person’s only action was to vote to spend public funds in a way that complies with the law at the time of the vote; c.provide that a civil penalty imposed under the statute bars criminal prosecution for the same conduct; d.provide that a violation of the statute by an individual requires a culpable mental state by the actor (e.g., knowing, intentional, or reckless action); e.provide that an individual cannot be punished for violating the statute based solely on the conduct of a third party; f.require that the Texas Ethics Commission make a preliminary, formal finding that a complaint is not frivolous before a complaint may proceed, and require the Texas Ethics Commission to give its reasons for such a finding; g.provide that it is an affirmative defense to civil or criminal prosecution under the statute that the accused acted in reasonable reliance on a court order or a written interpretation of the statute contained in an opinion of a court of record, the attorney general, the Texas Ethics Commission, or the attorney for the political subdivision for which the accused serves. legislation that would extend the authority of property- Support taxing entities to engage in property tax abatements. legislation that would create a new council-option city sales Support tax for property tax relief that may exceed the two-percent local cap. City of Denton 2009 State Legislative Program December 9, 2008 Page8 legislation that would significantly increase the three-sale Support requirement under current law for determining whether a warehouse constitutes a place of business for sales tax sourcing. legislation that would apply hotel occupancy taxes to RV Support parks, except for stays of longer than 30 days. legislation that would increase future local parks funding. Support legislation that would adopt the parks study called for by Support H.B. 12 (2007), thus binding future legislatures to full local parks funding. legislation that would require the General Land Office Support (GLO) to do the following: (a) inform any affected city of the GLO’s intent to purchase or develop land within the city or its ETJ; (b) seek permission from affected cities for any proposed project to develop land owned by the GLO; and (c) adhere to the affected cities’ development regulations when developing land owned by the GLO. legislation that would simplify the effective tax rate Support calculation for notice purposes only, provided the legislation would have no effect on the underlying effective tax rate and rollback tax rate calculations themselves, nor upon the hold harmless exemptions to those rates. legislation that would modify the Super Freeport property Support tax exemption statute to match the related constitutional amendment. legislation that would remove the four-year sunset for future Support street maintenance sales tax elections. legislation that would provide that hotel taxes are due on the Support final cost of the hotel room to the guest. legislation that would permit, but not require, pooled Support collateral for public deposits, provided the legislation contains the following features: (1) a requirement that banks provide 102- percent collateralization; (2) accurate reporting and tracking of collateral amounts; and (3) a requirement that pledged securities be City of Denton 2009 State Legislative Program December 9, 2008 Page9 held by the comptroller or other third party designated by the comptroller. legislation that would impose destination-based sales tax Oppose sourcing. any legislation that would enact any detrimental amendments Oppose to the provisions of Senate Bill 5 or erode the provisions of Senate th Bill 5 (79 Legislature, Second Called Session). legislation that would substantially modify the current Oppose procedures of appraisal arbitration in a way that would substantially harm taxing entities or appraisers. legislation that would erode the concept that appraisals must Oppose reflect the true market value of property. legislation that would impose new mandatory homestead Oppose exemptions or exemption increases. legislation that would impose new property tax exemptions Oppose that substantially erode the tax base. legislation that would impose a property tax freeze that can Oppose be implemented by any mechanism other than council action. legislation that would remove the authority of a city to collect Oppose its own property taxes. legislation that would automatically defer property taxes for Oppose seniors. egislation that would expand to other groups the availability Oppose l of property tax deferrals. legislation that would permit another entity to impose a Oppose property tax on city-owned property. legislation that would extend the “Prop 2” pollution control Oppose property tax exemption to processes, facilities, or end products. City of Denton 2009 State Legislative Program December 9, 2008 Page10 legislation that would allow other local governments or Oppose districts not under the control of the city to reduce existing city sales taxes through the enactment of new sales taxes. legislation that would limit the use of city economic Oppose development incentives based on ancillary social or economic goals. legislation that would expand election requirements for Oppose issuance of any city debt. legislation that would require a city to give special preference Oppose to local depository banks or to public funds investments that would benefit the local economy. legislation that would cut state appropriations for future Oppose local parks grant funding. legislation that would create earmarks of local parks grant Oppose funds. legislation that would require mailed notice of tax rates. Oppose legislation that would prevent a city from applying hotel Oppose occupancy taxes on the final cost of the hotel room to the guest, or prohibit a city from suing any entity necessary to collect such hotel occupancy taxes. legislation that would require municipalities to participate in Oppose a pooled collateral program for municipal funds. Land Use and Resources legislation that would amend Chapter 245 of the Texas Local Support Government Code to clarify vested rights language in the following manner: a.Narrow the definitions of “permit” and “project in 245.001. b.Delete the term “plan for development” in sections 245.002(a)(2) and 245.002(a-1), and the term “property classification” from 245.004(2). City of Denton 2009 State Legislative Program December 9, 2008 Page11 c.Provide that any plan for development that initiated a project following the 2005 amendments, but prior to the 2009 amendments, can be terminated if a consistent permit application has not been filed (and approved) within 2 years of the effective date of the 2009 amendments. d.Provide that section 43.002 is the exclusive vehicle for vesting property rights in advance of annexation. legislation that would address the failure of utility companies Support to relocate their facilities in a timely manner as required by current law. legislation that would allow voters in the ETJ to vote on Oppose whether any proposed ordinance or ordinance amendment shall apply in the ETJ. legislation that would reduce a municipal authority and Oppose discretion to approve the creation of a special district within a city’s incorporated area or ETJ, including the expansion of a district’s boundaries or powers. legislation that would erode city annexation authority. Oppose legislation that would erode city authority in the Oppose extraterritorial jurisdiction over special districts. legislation that will reduce or eliminate development fees, Oppose exactions or building permits. legislation that will restrict cities’ ability to adopt or amend Oppose zoning regulations, or vest or otherwise create a property right in a zoning classification. Utilities legislation that will preserve Congestion Revenue Rights Support (PCRRs) assigned to municipal utilities in exchange for supporting the nodal market construct. legislation that will require a utility rate study that compares Support the statewide utility rate, including electric, water, and natural gas, City of Denton 2009 State Legislative Program December 9, 2008 Page12 to other Sunbelt states to ensure Texas maintains our status as a premier location for future or expanding business ventures. legislation that allows municipal utilities to participate in Support Competitive Renewable Energy Zone (CREZ) transmission construction effort without fear of losing or jeopardizing their tax- free status. legislation that preserves the Self Regulation of Municipal Support Electric Utilities. legislation that protects the ability of governmental entities Support to maintain confidentiality of certain critical documents and activities. legislation that adds wind resources to the transmission grid Support in a staged manner that will ensure the most cost-effective build-out of transmission facilities, maintain grid reliability and avoid the potential for future stranded investment of transmission facilities. legislation that takes a cautious and measured approach to Support any potential carbon or green house gas regulation such that the state of Texas does not inadvertently implement standards more rigorous than federal requirements. legislation that phases in the concept of time-of- use pricing Support in conjunction with advanced metering technology where appropriate. legislation that clarifies that the 20% discount on electric Support service to universities ended September 1, 2007 based on the express terms of Section 63 of Senate Bill 7 (76th Legislature, 1999). legislation that requires market participants and Retail Support Electric Providers (REPs) to be properly capitalized before they are allowed to participate in the ERCOT market. legislation that requires more stringent credit requirements Support for the startup of Retail Electric Providers (REPs). legislation that requires municipal electric utilities to pay Oppose uplifted charges for those ERCOT Retail Electric Providers (REP) that declare bankruptcy or for any other ERCOT short pay charges. City of Denton 2009 State Legislative Program December 9, 2008 Page13 legislation that would extend electric subsidies provided by Oppose municipal utilities to four-year state universities, upper level institutions, Texas state technical colleges or liberal arts colleges. legislation that exempts any further exemptions to the Oppose drainage fee. any legislation that would limit or prohibit a city's ability to Oppose make and sell compost/mulch products, inside and outside of the city limits. any legislation that will increase ERCOT Fees. Oppose Transportation legislation that would mandate the Texas Department of Support Transportation and the Texas Transportation Commission to allow that locally collected toll revenues remain in the region where they were collected, and be administered by the region using policies established in the region. legislation that allows for greater flexibility by cities to fund Support local transportation projects; amend or otherwise modify the Tax Code to help cities fund transportation projects; and provide municipalities additional funding options and resources to address transportation needs that the state and federal governments are unable to address. legislation that would fund options for the highway Support infrastructure in Texas such as incremental transit sales tax less than ½ cent, a one-percent gasoline sales tax, a 1.75-percent motor vehicle sales tax, additional vehicle registration fees, a local option gas tax, a vehicle motor tax, a new resident impact fee, or a transportation property tax. legislation that would exempt cities and counties from the Support state requirement to pay TxDOT’s project administrative costs when cities and counties are providing the funding for state highway projects included in TxDOT’s Unified Transportation Program. legislation that would expand the provisions of TxDOT’s Support Pass Through Toll Program that allow a county to design and City of Denton 2009 State Legislative Program December 9, 2008 Page14 construct a highway improvement on the state’s highway system to apply to both cities and counties when the city or county is providing the funding for any project included in TxDOT’s Unified Transportation Program, provided that the reimbursement provisions of the Pass Through Toll Program would not apply to this expansion of the program. legislation that would exempt from the two-percent cap on Support local sales tax any local sales tax committed to transportation projects, provided such tax permits each affected city to approve the enactment of the tax within its jurisdiction. legislation that would constitutionally protect all revenues in Support Fund 6 and discontinue the diversion of transportation revenues to non-transportation purposes, and appropriate all revenues from highway user fees and taxes to fund transportation. legislation that would index the motor fuels tax to reduce the Support decline in purchase power of transportation funding. legislation that would create a Regional Mobility Authority Oppose in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. Public Safety legislation that expands the grandfathering clause of newly Support classified civil service positions to municipalities that do not meet the population requirement outlined in current legislation. legislation that permits local regulations to prohibit the Support ownership, possession, harboring, maintenance, transportation, or sales of specific breeds of dogs within a local municipality and/or support the repeal of legislation which prohibits breed-specific regulations by home rule municipalities and local municipalities. legislation that would require 100 percent reimbursement of Support costs incurred by cities for services provided during emergency evacuation and shelter operations resulting from an emergency evacuation ordered by the governor or the governor’s Division of Emergency Management. City of Denton 2009 State Legislative Program December 9, 2008 Page15 legislation that would amend Article 102.01111(a)(1) of the Support Texas Code of Criminal Procedure to provide that a defendant convicted of a felony or a misdemeanor shall pay a fee of $15.00 rather than the current fee of $5.00 for the services of a peace officer in issuing a written notice to appear in court following violation of a traffic law, municipal ordinance, or penal law of the state, or making an arrest without a warrant. legislation that would provide consistency and uniformity in Support the compliance deadlines and fees for compliance dismissals of class 'C' misdemeanors. legislation that would amend Article 27.14(b) of the Code of Support Criminal Procedure by eliminating the need to send a certified letter if a plea is received through the mail with no payment and to use regular mail in its place. legislation that would amend Article 43.05(b) and 45.045(a) Support of the Code of Criminal Procedure to allow a defendant arrested on capias pro fine to be brought immediately or the next day before the court or a magistrate at the jail. legislation that would make the impoundment of a vehicle Support optional upon a defendant's conviction of a second "no vehicle liability" charge and that impoundment may be ordered by justice courts of the sheriff and by municipal courts of the chief law enforcement officer of the municipality. legislation that would allow judges to suspend adult driver's Support licenses for failure to appear or for non-compliance with judicial orders on class 'c' misdemeanor cases filed in municipal and justice of the peace courts. legislation that would amend Article 103.0031(i) of the Code Support of Criminal Procedure to allow courts with a contract with a collections vendor to refer cases that were filed prior to June 18, 2003, and to add the prescribed collection fee in order to increase compliance with judicial orders and enhance safe communities. legislation that further restricts a city’s ability to implement Oppose a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. City of Denton 2009 State Legislative Program December 9, 2008 Page16 General Government legislation that heightens environmental standards, improves Support air and water quality and protects the health, safety, and welfare of Texans. legislation that would exempt cities from any federal Support collective bargaining legislation that may become law in the future. legislation that would enact the Community Building Code Support Administration Grant Act of 2007 or similar legislation if filed in Congress in 2009. legislation amending Section 11.1825 of the Tax Code by Support adding that community housing development organizations (CHDOs) must receive an exemption from taxation from any affected municipality prior to receiving a tax exempt status from the local property appraisal district. legislation that directly benefits UNT and/or TWU, if such Support proposals do not adversely affect the city’s interest. legislation that directly benefits Denton ISD, if such Support proposals do not adversely affect the city’s interest. City of Denton 2009 State Legislative Program December 9, 2008 Page17 RESOLUTION " ~ s:\our documents\resolutions\08\purchasing preference due to air quality.doc RESOLUTION NO. ODOR A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE GIVING OF A PREFERENCE TO GOODS AND SERVICES OF A VENDOR THAT DEMONSTRATES THAT THE VENDOR MEETS OR EXCEEDS ANY STATE OR FEDERAL ENVIRONMENTAL STANDARDS, INCLUDING VOLUNTARY STANDARDS, RELATING TO AIR QUALITY OR REQUIRING THAT A VENDOR DEMONSTRATE THAT THE VENDOR MEETS OR EXCEEDS ANY STATE OR FEDERAL ENVIRONMENTAL STANDARDS, INCLUDING VOLUNTARY STANDARDS, RELATING TO AIR QUALITY IF OTHERWISE MEETING THE REQUIREMENTS OF TEX. LOC. GOVT CODE SECTION 271.907; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, air pollution is a significant environmental issue that can threaten human health and negatively impact the ecological systems of the planet; and WHEREAS, the Dallas-Fort Worth (DFW) area is currently ranked as the seventh most polluted United States urban area for ozone pollution by the American Heart and Lung Association; and WHEREAS, the City of Denton is located in the DFW non-attainment area for ozone air pollution as that term is defined by the TEx. HEALTH & sAFETY coDE section 386.001; and WHEREAS, the primary Air Pollutants of concern for the DFW region include NOx, volatile organic compounds (VOCs), particulate matter (PM), carbon dioxide (CO2), and carbon monoxide (CO), all of which must be reduced to improve air quality and meet state and federal regulations; and WHEREAS, some of these Air Pollutants also contribute to climate change and the related environmental concerns; and WHEREAS, the sources of these Air Pollutants include, but are not limited to, vehicles, construction equipment, and stationary "point sources" such as large scale process heaters, boilers, incinerators, metal production facilities, aggregate kilns, lime kilns, cement kilns, and any other point source polluters identified by the North Central Texas Council of Governments (NCTCOG); and WHEREAS, the City of Denton purchases various materials for use in municipal projects; and WHEREAS, the City of Denton is committed to exercising environmental stewardship by developing and implementing policies to improve the health of its citizens and ensure protection of the environment; NOW, THEREFORE, s:\our documents\resolutions\08\purchasing preference due to air quality.doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Manager is hereby authorized to implement the purchasing preference specified in TEx. LoC. Gov'T CODE section 271.907 in order to improve the air quality in the City of Denton and the DFW region. SECTION 2. The City Manager may, so long as the City of Denton remains in an air quality nonattaillment area as defined in TEx. HEALTH & SAFETY CODE section 386.001, give preference to goods or services of a vendor that demonstrates that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality; or require that a vendor demonstrate that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality. SECTION 3. The City Manager may apply this preference only if the cost to the City of Denton for the goods or services would not exceed one-hundred five percent (105%) of the cost of the goods or services provided by a vendor ~vho does not meet the standards. SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 9~G day of ~~~t~~/(/ , 2008. MARK A. BURROUGHS, OR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~ APPROVED AS LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2