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September 20, 2011 Agenda
AGENDA CITY OF DENTON CITY COUNCIL September 20, 2011 After determining that a quorum is present, the City Council of the City of Denton, Texas will 3:00 p.m. convene in a Work Session on Tuesday, September 20, 2011 at in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clarification of agenda items listed on the agenda for September 20, 2011. 3. Receive a report, hold a discussion, and give staff direction regarding mobile food trailers. 4. Receive a report, hold a discussion and provide direction on the Hickory Street Sidewalk Enhancement project. 5. Receive a report, hold a discussion and give staff direction regarding redistricting of City Council districts as a result of the 2010 census. 6. Receive a report and hold a discussion regarding the Oncor Arco Substation to Krugerville Substation 138 kV Transmission line rebuild project located in east Denton. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the City Council will not conduct a Closed Meeting and will convene at the time listed below for its regular or special called meeting. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the TEXAS GOVERNMENT CODE, as amended, as set forth below. CLOSED MEETING 1.Closed Meeting: A.Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric (“DME”) for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. City of Denton City Council Agenda September 20, 2011 Page 2 B. Consultation with Attorney – Under Texas Government Code Section 551.071 1.Consultation with City’s attorneys with regard to any legal issues that could potentially result from the recent failure of what was referred to as a “Juliet balcony” at 701 Fort Worth Drive, Denton, Texas, and consider the potential legal issues or consequences associated with any amendment of building standards, or the imposition or retrofit of further corrective measures. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE ‘PUBLIC POWER EXCEPTION’). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.” 2. PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 1.Presentation of the Government Finance Officers Association Distinguished Budget Award for the City of Denton FY 2010-11 Budget. 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Pamela Mallory regarding traffic in the Wheeler Ridge community. 2. Donna Woodfork regarding lack of follow-up to citizen reports. City of Denton City Council Agenda September 20, 2011 Page 3 4. BUDGET ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2011, on all taxable property within the corporate limits of the city on January 1, 2011, and adopting a tax rate of $0.68975 per $100 of valuation for 2011; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. B.Consider adoption of an ordinance of the City of Denton, Texas, approving the 2011 tax rolls; and providing an effective date. C.Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2011-2012 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2011, and ending on September 30, 2012; and declaring an effective date. D.Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2011-12 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning October 1, 2011, and ending on September 30, 2012 when the Budget will raise more revenue from property taxes than last year’s budget; and providing an effective date. 5. BUDGET CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Budget Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Budget Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Budget Consent Agenda. Citizen comments on Budget Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Budget Consent Agenda (Agenda Items A – R). This listing is provided on the Budget Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Budget Consent Agenda. If no items are pulled, Budget Consent Agenda Items A – R below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Budget Consent Agenda. A.Consider adoption of an ordinance approving an Agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date. ($255,193) City of Denton City Council Agenda September 20, 2011 Page 4 B.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for Harris Public Utility Billing System and associated Software Modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4770–Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $102,642.68). C. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld)) from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4773– Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $128,814.36). D. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for Interactive Voice Response and Outage Management System and associated Software Modules for Denton Municipal Electric (DME) utility available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4774–Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Milsoft Utility Solutions in the amount of $62,282.53). E. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 4776–Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, Inc. in the amount of $56,250.00). F. Consider adoption of an ordinance awarding a contract for the purchase of continued Software Maintenance and Services for the Laserfiche-DocuNav Document Imaging System currently being used by the City of Denton from VP Imaging, Inc., dba DocuNav Solutions available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4777Purchase of Annual Maintenance for Laserfiche-DocuNav Document Imaging System awarded to VP Imaging, Inc. dba DocuNav Solutions, in the amount of $57,977.53, the first of three payments, for a total three-year maintenance agreement in the amount of $173,932.59). City of Denton City Council Agenda September 20, 2011 Page 5 G. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for VisionAir Public Safety Software System and Associated Modules used for Police and Fire Department dispatching and records management available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4781–Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $205,381.50). H. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE) and 3G (third-generation) wireless computer network from the Texas Department of Information Resources contract (DIR-SDD-597) for the Public Safety mobile computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therfor; and providing an effective date (File 4782–Purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE), and 3G (third-generation) awarded to AT&T Mobility (DIR-SDD-597) in the amount of $129,073.00). I. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, establishing a Street Improvement Fund; defining and committing certain fees and other revenues of the City; providing a severability clause; and providing an effective date. The Audit/Finance Committee recommends approval (3-0). J. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, defining the scope, funding source and purpose of the Recreation Fund; providing a severability clause; and providing an effective date. The Audit/Finance Committee recommends approval (3-0). K. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, defining the scope, funding source and purpose of the Non-Airport Gas Well Fund; providing a severability clause; and providing an effective date. The Audit/Finance Committee recommends approval (3-0). L. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, adopting Governmental Accounting Standards Board (“GASB”) Statement 54; establishing a fund balance policy; and providing an effective date. The Audit/Finance Committee recommends approval (3-0). M. Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates contained in Ordinance No. 2010-288 for electric service; deleting interruptable power supply (Schedule UPS); amend commercial renewable energy service rider (Schedule CGR) to increase term of agreement and to define participation requirement; amend residential renewable energy service rider (Schedule RG) to define participation requirement; amend general service time of use (Schedule TGS) to define participation requirement; amend City of Denton City Council Agenda September 20, 2011 Page 6 economic growth rider (Schedule EGR) to define participation requirement; amend greensense energy efficiency rebate program (Schedule GRP) to define participation requirement; amend distributed generation from renewable sources rider (Schedule DGR) to define participation requirement; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). N. Consider adoption of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2010-233; providing an amendment to the right-of- way inspection fee and the right-of-way overtime inspection fee; providing a repealer; providing for a severability clause; providing for an effective date. The Public Utilities Board recommends approval (5-0). O. Consider adoption of an ordinance of the City of Denton, Texas providing for the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to city utilities customers contained in Ordinance No. 2010-232; amending account and reconnection charges; amending meter charges; amending miscellaneous fees, charges and deposits; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). P. Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2010-231 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton solid waste service; providing for the amendment to the residential refuse and recycling collection services rates and clarification thereof (Schedule SWR); amending the residential multi-family household furniture collection services rate (Schedule SWMFS); amendment to the multi-family chemical collection/recycling rate (Schedule MFR); amendment to the commercial solid waste collection services dumpster rates (Schedule SWC); amendment to the commercial recycling services rate to reflect an increase to the small business recycling cart rate (Schedule SWCR); amendment to the collection and transportation services permit and clarifications (Schedule SWP); amendment to the sanitary landfill services rates (Schedule SWL); providing for a repealer; providing for a severability clause; and providing an effective date. The Public Utilities Board recommends approval (5-0). Q. Consider adoption of an ordinance amending the schedule of wastewater rates contained in Ordinance No. 2010-230; providing for an amendment in the rates for residential wastewater service (Schedule SR); amending the mobile home park wastewater service (Schedule SMH); amending the commercial and industrial wastewater service (Schedule SC); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub-meters) (Schedule SCD); amending the commercial /industrial wastewater service which measures with dedicated water meters (sub-meters) (Schedule SCS); amending the septage & chemical toilet disposal at the Pecan Creek Water Reclamation Plant septage transfer station (Schedule SCH); amending the equipment services City of Denton City Council Agenda September 20, 2011 Page 7 facilities and restaurant & food service establishments wastewater service (Schedule SEE); amending the metered wastewater inside and outside corporate limits (Schedule SM); amending the sale of treated wastewater effluent (Schedule SGE); amending the wholesale wastewater treatment service for a governmental agency, division or subdivision (Schedule SSC); amending the wastewater tap fees (Schedule ST); amending the on-site sewage facility permit fees (Schedule OSSF); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). R. Consider adoption of an ordinance an ordinance amending the schedule of water rates contained in Ordinance No. 2010-229 for water service rates and water rates; amending the residential water service rate (Schedule WR); amending the commercial/industrial water service rate (Schedule WC); amending the metered water from fire hydrant rate (Schedule WFH); amending the wholesale treated water service rate to the Upper Trinity Regional Water District (Schedule WW); amending the wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WC1); amending the water tap and meter fees, amending the water laboratory testing fees; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). 6. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – J). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A – J below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A.Consider a request for an exception to the Noise Ordinance for an increase in amplified sound from 70 decibels to 75 decibels and for an increase in hours of operation from 10:00 p.m. to 12:30 a.m. on Friday, October 28, 2011, for the Sigma Chi Fraternity’s “Fight Night” amateur boxing match that will take place in the parking lot behind Lucky Lou’s, located at 1209 West Prairie Street. The exception is requested for an increase in amplified sound to 75 decibels from noon to 2:00 p.m. for a sound check and from 7:00 p.m. until 12:30 a.m. for the event. Staff recommends approving the request. City of Denton City Council Agenda September 20, 2011 Page 8 B. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the cast in place concrete portions of the Paisley Street Paving and Drainage Improvements project for the extension and connection of Paisley Street, near Lee Elementary School; providing for the expenditure of funds therefor; and providing an effective date (Bid 3516-awarded to the lowest responsible bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $165,190.88). C. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of Two LifePak 15 Defibrillators from Physio Control, Inc., which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4822–Purchase of Two Defibrillators for the City of Denton Fire Department in the amount of $75,383.60). D. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Martha Jensen, proprietor of Mellow Mushroom Pizza Bakery, 217 E. Hickory Street, from the Downtown Incentive Grant Program not to exceed $7,235; and providing for an effective date. The Economic Development Partnership Board recommends approval (8-0-1). E. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from John Cartwright, ownerof 111 N. Elm Street, from the Downtown Incentive Grant Program not to exceed $5,700; and providing for an effective date. The Economic Development Partnership Board recommends approval (8-0-1). F. Consider approval of the minutes of: August 2, 2011 August 4, 2011 August 9, 2011 August 16, 2011 August 25, 2011 G. Consider approval of a resolution of the City Council of the City of Denton, Texas authorizing the filing of a grant application with the United States Environmental Protection Agency for a Brownfield Assessment Grant in the amount of $200,000; and providing for an effective date. H. Consider adoption of an ordinance of the City of Denton, Texas, amending Chapter 21 of the Code of Ordinances by adding Article IV, Sections 21-60 through 21-65, making it unlawful for certain sex offenders to reside within 1,500 feet of premises where children gather; providing that a culpable mental state is not required for committing an offense under this article of the City of Denton Code of Ordinances; providing for affirmative defenses; providing a repealing clause; providing a savings clause; providing a severability clause; providing for penalty of fine not to exceed five hundred dollars ($500.00); and providing for an effective date. City of Denton City Council Agenda September 20, 2011 Page 9 I. Consider approval of a resolution of the City of Denton, Texas, in support of the rd passage of legislation during the 83 State Legislative Session that will revise the current interpretation of the Texas Administrative Code, such that staff of municipal governments and non-profit housing organizations are not designated as mortgage loan originators and are therefore not required to meet state licensing requirements; and providing for an effective date. J. Consider approval of a resolution of the City of Denton, Texas, in support of the rd passage of legislation during the 83 State Legislative Session that will allow the release of information to the public prior to action by the governing body, and allow the discussion and presentation concerning requests for proposals in an open meeting; and providing for an effective date. 7. ITEMS FOR INDIVIDUAL CONSIDERATION A.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving the redistricting of the city’s single-member council districts and establishing new district boundary lines based on 2010 Census data for Denton city council elections; directing the city’s redistricting consultant to submit the adopted plan for preclearance under Section 5 of the Federal Voting Rights Act; and providing for an effective date. B.Consider nominations/appointments to the City’s boards and commissions. 1.Health & Building Standards Commission 2.Public Art Committee 3.Zoning Board of Adjustment 8.PUBLIC HEARINGS A.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Regional Center Commercial Neighborhood (RCC-N) zoning district classification and use designation to a Regional Center Commercial Downtown (RCC-D) zoning district classification and use designation, on 1.441 acres of land located on the north side of Schuyler Road, northeast of Worthington Drive and known as Lot 6, Block A of the Hull Addition, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z11-0010, 3412 Schuyler Street) The Planning and Zoning Commission recommends approval (7-0). B.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending an overlay district and approving an amendment to the Quail Creek Special Sign District for 3.5 acres of land within the 35.5 acre district located at the northeast corner of Brinker Road and Quail Creek Boulevard and also known as Lot 1, Block A of the Biolife Plasma Addition, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (SD11-0004, BioLife Plasma Center) The Planning and Zoning Commission recommends approval with conditions (7-0). City of Denton City Council Agenda September 20, 2011 Page 10 C.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Downtown Residential 1 (DR-1) zoning district classification and use designation to a Downtown Residential 2 (DR-2) zoning district classification and use designation; on approximately 0.51 acres of land located on the north side of Fannin Street and east of Avenue A, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z11-0009, 1118 & 1120 Fannin St.) The Planning and Zoning Commission recommends approval (7-0). D. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Downtown Residential 2 (DR-2) zoning district classification and use designation to a Downtown Commercial General (DC-G) zoning district classification and use designation on approximately 2.083 acres of land located south of Eagle Drive, west of Bernard Street, east of Beatty Street and north of Fannin Street, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z11-0016, Crosswind Village) The Planning and Zoning Commission recommends approval, subject to a restrictive overlay district (6-1). E. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from Rural Residential 5 (RD-5) zoning district classification and use designation to Industrial Center General (IC- G) zoning district classification and use designation, on 10.49 acres, located on the east side of South Mayhill Road, approximately 468 feet south of Morse Street, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date.(Z11-0011, Pecan Orchard) The Planning and Zoning Commission recommends approval (7-0). 9. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Bob Clifton regarding the proposed budget. 2. Hatice Salih regarding protocol, decorum and common courtesy during citizen reports; and the proposed budget. 10. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding City of Denton City Council Agenda September 20, 2011 Page 11 holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. C. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the ________day of ___________________, 2011 at ________o'clock (a.m.) (p.m.) __________________________________________ CITYSECRETARY NOTE: THECITYOFDENTONCITYCOUNCILCHAMBERSISACCESSIBLEIN ACCORDANCEWITHTHEAMERICANSWITHDISABILITIESACT.THECITYWILL PROVIDESIGNLANGUAGEINTERPRETERSFORTHEHEARINGIMPAIREDIF REQUESTEDATLEAST48HOURSINADVANCEOFTHESCHEDULEDMEETING. PLEASECALLTHECITYSECRETARY'SOFFICEAT349-8309ORUSE TELECOMMUNICATIONSDEVICESFORTHEDEAF(TDD)BYCALLING1-800-RELAY- TXSOTHATASIGNLANGUAGEINTERPRETERCANBESCHEDULEDTHROUGHTHE CITYSECRETARY’SOFFICE. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT Receive a report, hold a discussion, and give staff direction regarding mobile food trailers. BACKGROUND Mobile food vendors are currently permitted to travel throughout the city and to prepare and sell food; however, they are not allowed to park or stay stationary for more than fifteen (15) minutes in one place. Currently there is interest from the public to consider allowing Mobile food carts/trailers within the city, and to allow these carts/trailers to park for some reasonable length of time to prepare and sell food. Per our research, this is currently being allowed in cities such as Austin, San Antonio, Seattle, and Portland. In these cities mentioned, a food vendor can obtain a permit to park his or her food carts/trailers and sell food to the public. These private ventures have been very successful according to many articles published recently. With the apparent success of Mobile Food Vendors in other cities, increasing interest for permitting this use is being expressed here in Denton. In our opinion, this may be due to the fact that the start-up financial investment and risk is marginal compared to that of a brick-and-mortar establishment. Since the concept of mobile food cart/trailers has not been considered in Denton previously, the current Food Establishment Ordinance does not address this use. In considering the allowance of permanent mobile food vendors, many valid issues have surfaced. While the responses to these issues vary, the most common ones are as follows: 1.Location and duration of stay: Research of different cities show that the length of stay in one location varies from 24 hours to an unlimited stay; however, all cities require the cart/trailer to be mobile and ready to be moved at any given moment. Mobile Food Cart/Trailer permitted locations are typically regulated by the local zoning regulations. Research revealed that one city (San Antonio) allows vendors to sell in residential zones during set hours. All cities have regulations addressing minimum distance separation from permanent brick and mortar food establishments. The minimum separation ranges from 20 feet to 300 feet. Some cities allow the minimum separation distance to be reduced with written permission from the existing permanent establishment. 2.Connection to utilities: Research shows that all cities prohibit connections (permanent or temporary) to utilities. This is due to the fact that these food carts/trailers are intended to be mobile units and connections to utilities would be in conflict with this requirement. 3.Fees, Permits, Certificate of Occupancy, and Inspections: The costs of permit fees vary across cities. However, most cities require the following fees: an annual fee; a plan review fee (requires a plan of the layout of the mobile unit); a certificate of occupancy fee (if the mobile unit is to stay at one location for an extended length of time); an application fee (for those applying for their initial permit); and a background check fee. 4.Waste Disposal: Staff found that each mobile food establishment is responsible for the disposal of their created waste. This includes not only solid waste, but also waste water and grease. In addition, as most of these mobile units do not have restroom facilities on-board, they are required to have access to a functioning restroom, including hand washing and toilet facilities, within an established maximum distance. This distance varies from 150 to 300 feet, and the owner of the mobile food unit is required to show written permission to use the restroom facilities. OPTIONS 1.Direct the Building Inspection Division to continue enforcing the current Food Establishment Ordinance in matters concerning Mobile Food Vendors; or, 2.Direct the Building Inspection Division to amend the current Food Establishment Ordinance to allow the permitting of Mobile Food Cart/Trailers with associated fees: a.To stay for an unlimited time in one location; or, b.To stay for a limited amount of time in one location. PRIOR ACTION/REVIEW None to date EXHIBITS 1.Current Food Establishment Code Prepared by: Kurt S. Hansen Building Official Respectfully submitted: Mark A. Cunningham, AICP, CPM Director of Planning and Development AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Transportation Operations ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion and provide direction on the Hickory Street Sidewalk Enhancement project. BACKGROUND In the fall of 2009, staff initiated a design for a basic sidewalk enhancement improvement as part of the Downtown Denton Transit Center (DDTC) project. The original plan was to install sidewalk and pedestrian improvements on the south side of Hickory Street from Railroad Avenue and Hickory (DDTC) west to the Hickory Street and Bell Avenue intersection. When these plans were shared with Planning Department staff, it was agreed that the sidewalk project should be delayed until the Downtown Denton Implementation Plan (DTIP) could be finalized and presented to Council for approval. Staff wanted to ensure that the proposed sidewalk project would complement the design that was to be developed and approved as part of the DTIP, thus providing a template for future sidewalk enhancement projects in the Downtown area. As you may recall, a key component of the DTIP plan is to create a pedestrian-oriented environment that allows visitors and residents to walk safely to the many destinations in Downtown Denton. After the DTIP was approved by Council in September 2010, Engineering initiated a traffic study to ensure the DTIP did not negatively impact mobility through Downtown. Staff needed to ensure that proposed enhancements in the sidewalk plan, such as pedestrian bulb outs and constriction of traffic lanes, would match the complete street concept outlined in the DTIP and conform to the mobility needs established in the traffic study. At the same time, old water and wastewater lines located underneath Hickory Street between the DDTC and Bell Avenue were replaced to avoid the potential negative impact that future reconstruction activities would have on recently completed sidewalk enhancements and street improvements. Jacobs, the sidewalk design consultant, submitted 90-percent plans to the Planning Department on September 7, 2011. Comments are expected back to Jacobs by September 21, 2011. The scope of the project is to provide sidewalks on both the north and south sides of Hickory Street from the Downtown Denton Transit Center to Bell Avenue as well as provide appropriate pedestrian crossings across the Union Pacific Railroad and Bell Avenue. The plan incorporates design elements of the recently completed Downtown Denton Transit Center and existing sidewalk features found on Cedar Street and on the Square. Exhibit 1, Concept N, provides an overview of the proposed enhancements including: on both the north and south side of Hickory, Sidewalk will include brick accents similar to the Square and Cedar Street, Agenda Information Sheet September 20, 2011 Page 2 of 3 Street trees, Public street furniture, Pedestrian bulb-outs (landings), Pedestrian lighting, Establishment of crosswalks at the Hickory Street/Bell Avenue intersection, Pedestrian enhancements (buttons) for the Hickory Street/Bell Avenue signal, Parallel parking, Relocation of railroad signals and gate arms, and Extension of railroad street panels for pedestrian rail crossings. It is hoped that 100-percent design documents will be completed by the end of September and the project can be bid in October with construction beginning in November. Jacobs estimates a three to six month construction schedule depending on weather. Staff continues to work through Union Pacific Railroad (UPR) representatives to receive direction and permission to facilitate improvements on UPR property and make adjustments and/or relocation of UPR infrastructure. UPR has indicated that based on their internal development review process, it could take approximately 12 months to review, approve and construct any proposed enhancements in and to UPR property. To meet Federal Rail Administration (FRA) safety regulations and UPR development procedures, it may be necessary to bid the project in two phases. FRA regulations require that no work be conducted within 25 feet of centerline of a rail line, known as the without approved safety measures. To ensure proper safety measures are in place, UPR development procedures require that any modification to their infrastructure and any work completed on their right of way follow the UPR development process which will include an encroachment agreement, UPR approval of proposed enhancements and the inclusion of a UPR safety plan as defined by UPR staff. Due to the anticipated 12-month timeline for UPR enhancements, staff is working with UPR representatives and City of Denton Engineering to identify options for a temporary pedestrian pathway across the UPR main line and auxiliary track. Because no sidewalk currently exists between the Transit Center plaza to the Center for Visual Arts, pedestrians are often observed to identify options to implement a temporary pedestrian pathway that provides a safer environment for those walking to and from the Transit Center until final enhancements outlined in the overall Hickory Street Sidewalk Enhancement Project can be completed. PRIOR ACTION/REVIEW The Mobility Committee provided staff direction to include parallel parking as part of the overall Hickory Street Enhancement Project design at the December 2010 Mobility Committee Meeting. City Council was provided a brief overview of the 30-percent documents as part of the Denton th County Transportation Authority A-train implementation presentation at the June 7Council th meeting. The Mobility Committee was provided a brief summary at the September 13 Mobility Committee Meeting. Agenda Information Sheet September 20, 2011 Page 3 of 3 FINANCIAL In June 2011, Jacobs submitted probable costs for the sidewalk enhancement, based on 30- percent design and substantial railroad infrastructure costs, to be approximately $1.5 million. Phase I of those improvements, outside of the UPR , Jacobs provided a probable cost of $972,000 for the Phase II enhancements, improvements to UPR infrastructure. This initial estimate included the replacement and upgrade of four railroad crossing arms at a cost of $150,000 each. UPR has indicated that they may not require replacing the existing signals and crossing arms. Instead, they are considering a relocation of the existing infrastructure to facilitate the proposed sidewalk enhancements. If the UPR signals and crossing arms are not replaced or upgraded, a significant cost reduction to Jacobs probable cost estimate can be expected. RECOMMENDATION Staff recommends proceeding with the current 90-percent plans. SCHEDULE 90-percent plans were submitted to Planning on September 7, 2011. Staff is hopeful all comments can be resolved so that 100-percent plans may be submitted by the consultant by the end of September to allow for an October bid date for Phase I enhancements. If bids are approved in early November, a three to six month construction schedule initiating in mid- November is expected. Phase II enhancements are currently under review by UPR officials and staff has been advised that any work on UPR infrastructure could take up to 12-months from the August 18, preliminary engineering agreement between UPR and the City of Denton. EXHIBITS 1.Hickory Street Concept N and Cedar Street graphic 2.Hickory Street Enhancement Power Point Presentation Respectfully Submitted: Mark Nelson Transportation Director AGENDA INFORMATION SHEET AGENDA DATE : September 20, 2011 DEPARTMENT : Utilities Administration ACM: Howard Martin, 349-8232 SUBJECT ReceiveareportandholdadiscussionregardingtheOncorArcoSubstationto KrugervilleSubstation138kVTransmissionlinerebuildprojectlocatedineastDenton. BACKGROUND CouncilrequestedanupdatefromOncorElectricDeliveryconcerningthistransmission linerebuildprojectscheduledforlaterthisyear.StaffcontactedOncorElectricDelivery representativesandtheywelcomedtheopportunitytovisitwiththeCounciltoprovide anupdateontheprojectandansweranyquestions. Respectfully prepared and submitted by, Phil Williams General Manager Electric Administration Denton Municipal Electric AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2011, on all taxable property within the corporate limits of the city on January 1, 2011, and adopting a tax rate of $0.68975 per $100 of valuation for 2011; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. BACKGROUND The proposed tax rate of $0.68975 per $100 valuation is used to balance the FY 2011-12 Budget. This proposed tax rate is the same as the prior year, and is below the effective rate of $0.70199. Of the proposed tax rate, $0.47088 will be applied to fund operations and maintenance in the General Fund and $0.21887 will be applied to fund tax-supported General Obligation and Certificates of Obligation debt. The property tax exemptions provided by the City Council are also described in the attached ordinance. Per the direction of the City Council, the over 65 exemption has been increased from $35,000 to $40,000 in FY 2011-12. The attached tax rate ordinance also indicates that the over 65 exemption will be increased by $5,000 each subsequent fiscal year until the exemption equals $50,000 in FY 2013-14; however, each increase in the over 65 exemption will need to be approved by the City Council each year when the tax rate is adopted. All other exemptions remain at the same level as in previous years. PRIOR ACTION/REVIEW The FY 2011-12 Budget was submitted to the City Council on July 29, 2011. A workshop to present the details of the Budget to the City Council was conducted on August 4. The City Council also discussed the proposed budget during Work Sessions on August 9, August 16, September 6, and September 13. A public hearing on the Budget was held on September 6, 2011. Agenda Information Sheet September 20, 2011 Page 2 FISCAL INFORMATION The proposed property tax rate will generate $44,213,486, of which $30,183,756 will be used to fund operations and maintenance in the General Fund and $14,029,730 will be used to fund tax- supported General Obligation and Certificates of Obligation debt. Respectfully submitted: Bryan Langley Chief Financial Officer AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, approving the 2011 tax rolls; and providing an effective date. BACKGROUND As a component of the budget process, the City is required by the Texas Property Tax Code Chapter 26 to approve the tax roll on an annual basis. The tax levy is calculated by taking the 2011 Certified Appraisal Roll (excluding property values under protest) and applying the 2011 adopted tax rate. The anticipated collection rate is 100 percent. FISCAL INFORMATION The approval of the tax roll will enable the County to mail tax bills in October 2011. Respectfully submitted: Bryan Langley Chief Financial Officer. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2011- 2012 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2011, and ending on September 30, 2012; and declaring an effective date. BACKGROUND The City Council received the FY 2011-12 Proposed Budget on July 29, 2011. A workshop to present the details of the Budget was conducted on August 4, 2011. Further Work Session discussions on the Budget were held on August 9, August 16, September 6, and September 13, 2011. A public hearing on the Proposed Budget was also held on September 6 to solicit citizen feedback. Proposed Budget Revisions Since the Proposed Budget was presented at the end of July, changes have been recommended by the City Council. Below is a summary of the changes that have been incorporated into the final version of the budget that is being presented to the City Council for consideration. General Fund Due to an increase in the sales tax forecast, staff increased the level of funding for Council initiatives from the proposed amount of $192,616 to $333,676. As discussed, these funds can be used for additional street maintenance, the implementation of the bike plan, additional traffic signals, Denton County Transportation Authority (DCTA) downtown shuttle operating costs, or any other City Council priority. At the September 13 meeting, staff was directed to allocate an additional $50,000 for bike plan improvements. With this increase, the FY 2011-12 Proposed Budget now includes a total of $100,000 to implement some elements of the bike plan, and the level of funding remaining for other Council initiatives will be reduced from the previously discussed amount of $333,676 to $283,676. These remaining funds will be included in the non- departmental budget for the General Fund in FY 2011-12. Once additional details are known regarding the other identified Council initiatives, staff will bring these items back to the City Council for their consideration at that time. Additionally, the City Council has directed staff to increase the level of funding for street -12 Proposed Budget, 25% of the growth Agenda Information Sheet September 20, 2011 Page 2 in franchise fees compared to the FY 2010-11 budget amount was recommended to be transferred to the Street Improvement Fund. As discussed on August 16 and September 6, the City Council has directed staff to transfer 100% of the growth in franchise fees (compared to the FY 2010-11 budget) to the Street Improvement Fund. For FY 2011-12, this will reduce General Fund franchise fee revenue by $439,827 and increase street maintenance funding by the same amount in the Street Improvement Fund. Further, since the level of expenditures in the Street Improvement Fund is being increased, the General Fund will be required to transfer additional one-time resources to establish a fund balance equivalent to 15% of expenditures in the Street Improvement Fund. Accordingly, the General Fund will increase the one-time transfer of funds from the proposed amount of $855,805 to $921,779, a difference of $65,974. In the General Fund, the expenditure budget for FY 2011-12 will be increased from the original proposed amount of $88,255,716 to $88,462,750. Due to various changes outlined above, the General Fund revenue budget for FY 2011-12 will also decrease from the proposed amount of $87,171,622 to $86,872,855 (excluding use of reserves). The below table indicates the changes that are being incorporated. FY 2011-12 Revenue Budget $87,171,622 Increase sales tax revenues $141,060 Decrease franchise fee revenue share for General Fund ($439,827) Use of Reserves ($1,084,094 in Proposed Budget) $1,589,895 Total Revised FY 2011-12 Proposed Revenue Budget $88,462,750 Proposed FY 2011-12 Expenditure Budget $88,255,716 Increase in Council Initiatives $141,060 Increase in one-time transfer to Street Improvement Fund $65,974 Total Revised FY 2011-12 Proposed Expenditure Budget $88,462,750 In addition, the following changes have also been made based on City Council direction received during the various budget work sessions over the past several weeks: Street Improvement Fund: -12 Revenue Budget $6,561,171 Increased franchise fee revenues $439,827 Increase in one-time transfer from the General Fund $65,974 Total Revised FY 2011-12 Proposed Revenue Budget $7,066,972 -12 Expenditure Budget $5,705,366 Increased street maintenance funding $439,827 Total Revised FY 2011-12 Proposed Expenditure Budget $6,145,193 Agenda Information Sheet September 20, 2011 Page 3 Non-Airport Gas Well Fund: -12 Expenditure Budget $600,000 Increased expenses for potential property purchase $1,000,000 Total Revised FY 2011-12 Proposed Expenditure Budget $1,600,000 Finally, the Tourist and Convention Fund expenditure budget was increased from $1,315,060 to $1,315,360 to correct an error in the Denton Holiday Festival Association budget. All of the above changes are reflected in the attached Budget Resource and Expenditure Summary (Exhibit 1). In summary, the total revised City of Denton budget is recommended to increase by $1,647,161 to $587,028,209 FISCAL INFORMATION The total 2011-12 expenditure budget is listed by fund below: General Fund $88,462,750 General Debt Service Fund 39,075,952 Electric Fund 140,391,103 Water Fund 38,740,430 Wastewater Fund 24,801,568 Solid Waste Fund 22,904,336 Airport Fund 1,669,896 Technology Services Fund 8,025,502 Materials Management Fund 6,102,754 Fleet Management Fund 13,269,934 Risk Retention Fund 2,731,038 Health Insurance Fund 18,524,862 Street Improvement Fund 6,145,193 Recreation Fund 1,605,351 Tourist and Convention Fund 1,315,360 Police Confiscation Fund 207,000 Traffic Safety Fund 377,000 Non-Airport Gas Wells Fund 1,600,000 Parks Gas Well Fund 350,000 Tree Mitigation Fund 50,000 Public Education Government Fund 272,927 McKenna Trust Fund 46,678 Miscellaneous Special Revenue Fund 25,000 Park Land Dedication Trust Fund 330,000 Park Development Trust Fund 215,000 Total Operating Expenditures $417,239,634 Agenda Information Sheet September 20, 2011 Page 4 Grant Program $7,074,219 Capital Improvements Program $162,714,356 TOTAL EXPENDITURES $587,028,209 EXHIBITS - 1 Budget Resource & Expenditure Summary - 2 Ordinance Respectfully submitted: Bryan Langley Chief Financial Officer BUDGETRESOURCE&EXPENDITURESUMMARY 201112 200910201011201011201112 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALOPERATINGRESOURCES TOTALRESOURCES 200910201011201011201112 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALOPERATINGEXPENDITURES TOTALEXPENDITURES AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2011-12 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning October 1, 2011, and ending on September 30, 2012 when the Budget will raise more revenue from property taxes than last BACKGROUND Chapter 102 of the Local Government Code (LGC) requires certain provisions to be taken when the adoption of a budget will require raising more revenue from property taxes than in the previous year. Specifically, Chapter 102.007 Section C of the LGC states: Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax C The FY 2011-12 Proposed Budget will require raising more revenue from property taxes than in the previous year. Because of this, the City Council is required to take separate action to vote to ratify the property tax increase in the budget. FISCAL INFORMATION The FY 2011-12 proposed tax rate is $0.68975 per $100 valuation, which is the same tax rate as FY 2010-11. The FY 2011-12 Proposed Budget will generate approximately $1,257,119 or 2.93 percent more property tax revenue than FY 2010-11. Of this amount, $927,148 is tax revenue related to additional value from new construction over the past year. Respectfully submitted: Bryan Langley Chief Financial Officer AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date ($255,193). BACKGROUND The City Council and the Denton Chamber of Commerce first entered into an economic development partnership agreement in 1986. The attached contract represents the 2011-12 annual agreement and funding for the Denton Chamber of Commerce Economic Development program. The 2011-12 agreement reflects a $44,993 increase over funding. Thirty thousand dollars of the total increase will be allocated toward Denton Airport image and -11, the General Fund, Utility Fund and Airport Enterprise Fund dollars and provides for the administration and operation budget of the Chamber of Commerce, which includes: Prospect generation activities Marketing activities, i.e. trade shows, publishing/printing, website(s) administration, marketing materials Airport branding and marketing efforts Economic Development Partnership Board support Small Business Development Center support In addition to City funds, the Chamber of Commerce solicits private sector funding to enhance marketing and allies development efforts. PRIOR ACTION/REVIEW The Economic Development Partnership Board reviewed the budget and work plan for the 2011-12 fiscal year and recommended approval of the $255,193 budget at their July 13, 2011 meeting. FISCAL INFORMATION The proposed contract provides for a total City contribution of $255,193, to be funded as follows: General Fund - $60,897; Utility Fund - $164,296; Airport Enterprise Fund - $30,000 Agenda Information Sheet September 20, 2011 Page 2 EXHIBITS Ordinance Denton Chamber of Commerce Economic Development Agreement Respectfully submitted: _______________________________ Linda Ratliff, Director Economic Development Department AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for Harris Public Utility Billing System and associated Software Modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4770-Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $102,642.68). FILE INFORMATION The City of Denton uses the Harris Public Utility Billing System software for maintaining utility customer accounts, producing utility bills, and processing utility revenues. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any vendors within the city limits that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Harris Computer Systems, Inc. is the sole source vendor for maintenance for the Harris Public Utility Billing System and associated software modules. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Harris Computer Systems, Inc. in the amount of $102,642.68. PRINCIPAL PLACE OF BUSINESS Harris Computer Systems, Inc. Ottawa, Ontario, Canada ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for the time period of November 1, 2011 through October 31, 2012. Agenda Information Sheet September 20, 2011 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-12 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Support Calls Exhibit 4: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4770 9ãwz,z· Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING SYSTEM AND ASSOCIATED SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4770-PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING AWARDED TO HARRIS COMPUTER SYSTEMS, INC. IN THE AMOUNT OF $102,642.68). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4770 Harris Computer Systems, Inc. $102,642.68 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4770 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 6-ORD-File 4770 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld)) from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4773-Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $128,814.36). FILE INFORMATION The City of Denton uses the Oracle EnterpriseOne software package for Job Cost, Warehouse Inventory and Procurement, Financials, General Ledger Accounting, Human Resources, Employee Information, and Payroll. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Oracle USA, Inc. is the sole source vendor for maintenance for the Oracle EnterpriseOne Software Package and associated software modules. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Oracle USA, Inc. in the amount of $128,814.36. PRINCIPAL PLACE OF BUSINESS Oracle USA, Inc. Chicago, IL Agenda Information Sheet September 20, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT Maintenance is being paid for the time period of November 1, 2011 through October 31, 2012. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-12 Technology Services operating account number 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4773 Exhibit 1 . Jason Haydel jason.haydel@oracle.com (512)671-5652 Page 1 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Jason Haydel (512)671-5652 jason.haydel@oracle.com JasonHaydeljason.haydel@oracle.com Page2 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page3 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page4 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page5 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 107,345.30 Page6 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page7 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page8 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page9 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 21,469.06 128,814.36 JasonHaydel (512)671-5652jason.haydel@oracle.com Page10 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Page11 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 . - - - - - - - - - - Page12 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 128,814.36 Agreement: Billing Address (associated with Credit Card) City,State,andZip(associatedwithCreditCard) JasonHaydel jason.haydel@oracle.com AK, AZ, CA, HI, ID, NV, OR, UT, WA: Oracle America, Inc. PO Box 44471 San Francisco, CA 94144-4471 All other States: Oracle America, Inc. PO Box 71028 Chicago,IL60694-1028 Page13 of 13Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v030109 Exhibit 2 9600 North Mopac Expressway STE 700 Austin, TX, 78759 July 25, 2011 City of Denton James Barnes 215 EAST MCKINNEY STREET Denton, TX 76201 Dear James, This letter is to confirm that Oracle has the unique expertise a Oracle program licenses. Oracle creates the proprietary program provided as part of Oracle's technical support services. As the s support services (including the proprietary program updates crea offers the services to Oracle customers for purchase on an annua from Oracle or, on limited occasion, indirectly from an Oracle a http://www.oracle.com/support/policies.html. Please contact me should you have questions. Regards, Jason Haydel Support Sales Representative, Oracle Support Services Oracle USA, Inc. 9600 North Mopac Expressway STE 700 Austin, TX, 78759 512.671.5652 719.757.4309 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE ORACLE ENTERPRISEONE (FORMERLY PEOPLESOFT ENTERPRISEONE (FORMERLY JD EDWARDS ONEWORLD)) FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4773-PURCHASE OF ANNUAL MAINTENANCE FOR ORACLE ENTERPRISEONE SOFTWARE PACKAGE AWARDED TO ORACLE USA, INC. IN THE AMOUNT OF $128,814.36). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4773 Oracle USA, Inc. $128,814.36 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4773 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4773 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Interactive Voice Response and Outage Management System and associated software modules for Denton Municipal Electric (DME) utility available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4774-Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Milsoft Utility Solutions in the amount of $62,282.53). FILE INFORMATION Denton Municipal Electric (DME) uses the Milsoft Utility Systems software and automated interactive voice response system (IVR) to efficiently respond to electric utility service outages. This IVR solution provides DME with answering and message routing ability, additionally providing caller address identification supporting the Outage Management System (OMS). The OMS solution provides DME with the ability to partially automate the response to power outages and dispatch service crews, inform customers of outage status, and provide estimated restoration times. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors in the city limits that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Milsoft Utility Solutions is the sole source vendor for maintenance for the IVR and OMS systems and associated software modules. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Milsoft Utility Solutions in the amount of $62,282.53. PRINCIPAL PLACE OF BUSINESS Milsoft Utility Solutions Abilene, TX Agenda Information Sheet September 20, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for the time period of December 16, 2011 through December 15, 2012. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-2012 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4774 Exhibit 1 Quote Quote Number:41187 Date:08/02/2011 Account Manager:Bart Brockway Email:bart.brockway@milsoft.com Phone:800.344.5647 Valid Until:10/03/2011 Bill ToShip To John DurnellJohn Durnell Denton Municipal UtilitiesDenton Municipal Utilities 1701 C Spencer Road1701 C Spencer Road Denton, TX 76205Denton, TX 76205 USAUSA Support QuantityProductList PriceExt. Price 1IVR support $41,096.39$41,096.39 December 16, 2011 December 15, 2012 and will be invoiced on No 1, 2011. 12OMS Support$1,141.66$13,699.92 Billed the first of each month and is now $975.00 per month. AVL / Crew Management support will be added to th is OMS monthly invoice 60 days after install ation and each adds $83.33 per month respectively. 12Call Center Fee $400.00$4,800.00 Fee is b illed the first of each month. Calls are billed additionally as incurred and monthly call charge s will vary. 1Conversion Tool & Software Support$2,686.22$2,686.22 Annual maintenance fee for Conversion Tool of $1,800.00 and Misc Software support of $886.22. These are invoiced together on Dec and will cover the period January 01, 2012 December 31, 2012. Support Total:$62,282.53 Grand Total Total:$62,282.53 Quote Number: 41187800.344.5647 - bart.brockway@milsoft.com - www.milsoft.comPage 1 of 2 Terms and Conditions All payment must be made in U.S. Dollars. Milsoft products are MultiSpeak compliant, and interfaces with o development by Milsoft of any custom interfaces to non-MultiSpea quoted at additional cost. No other interface policy is expresse Quote Acceptance This Quote constitutes the entire understanding and agreement be understandings and agreements between the parties with respect t of any representation or promise not expressly contained herein. Account: Denton Municipal Utilities Accepted By: Print Name: Date: PO# (if required): To submit this form, please fax it to 325.690.0338 or mail it to: Milsoft Utility Solutions, Inc. 4400 Buffalo Gap Rd Suite 5150 Abilene, TX 79606 If you have any questions regarding this quote, please call 800.344.5647 and ask for Bart Brockway or email Bart at bart.brockway@milsoft.com. Quote Number: 41187800.344.5647 - bart.brockway@milsoft.com - www.milsoft.comPage 2 of 2 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR INTERACTIVE VOICE RESPONSE AND OUTAGE MANAGEMENT SYSTEM AND ASSOCIATED SOFTWARE MODULES FOR DENTON MUNICIPAL ELECTRIC (DME) UTILITY AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4774-PURCHASE OF ANNUAL MAINTENANCE FOR MILSOFT UTILITY SYSTEMS AWARDED TO MILSOFT UTILITY SOLUTIONS IN THE AMOUNT OF $62,282.53). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as gent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4774 Milsoft Utility Systems $62,282.53 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4774 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4774 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed to DEPARTMENT: Materials Management Kevin Gunn at 940 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 4776-Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, Inc. in the amount $56,250.00). FILE INFORMATION CodeRED Emergency Notification System allows the Emergency Management Coordinator in the Fire Department and other authorized individuals to utilize a web-based program to place telephone calls at high speed to the citizens of Denton during emergency situations such as hazardous materials spills, missing children, special events, etc. The System can also be used to notify groups such as off-duty personnel to report to work, Emergency Operations Center activations, Leadership Team notifications, etc. CodeRED Weather Warning Service is a prerecorded weather warning notification process that can automatically call residents when warnings are issued by the National Weather Service for tornadoes, flash flooding, severe thunderstorms, and winter storms. The CodeRED agreement automatically renews annually on October 7 unless the City of Denton cancels it. The annual renewal includes replacing the current minute bank back to 150,000 minutes at a cost of $37,500 and the Weather Warning module in the amount of $18,750 for a total annual renewal cost of $56,250. The Technology Services department could not identify any local vendors that could provide this type of service. Therefore, procuring this service from the above vendor is the best value for the City of Denton. Emergency Communications Network, Inc. is the sole source vendor for service of the CodeRED Emergency Notification and CodeRED Weather Warning Service. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. Agenda Information Sheet September 20, 2011 Page 2 RECOMMENDATION Award to Emergency Communications Networks, Inc. in the amount of $56,250.00. PRINCIPAL PLACE OF BUSINESS Emergency Communications Network, Inc. Ormond Beach, FL ESTIMATED SCHEDULE OF PROJECT Annual service is being paid for the time period of October 1, 2011 through September 30, 2012. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-2012 Technology Services operating budget account 830500.7804 EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4776 Exhibit 1 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION SYSTEM AND CODERED WEATHER WARNING SERVICE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4776- PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION AND CODERED WEATHER WARNING SERVICE AWARDED TO EMERGENCY COMMUNICATIONS NETWORK, INC. IN THE AMOUNT $56,250.00). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4776 Emergency Communications Network, Inc. $56,250 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4776 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-File 4776 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn, 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance awarding a contract for the purchase of continued software maintenance and services for the Laserfiche-DocuNav Document Imaging System currently being used by the City of Denton from VP Imaging, Inc., dba DocuNav Solutions available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids providing for the expenditure of funds therefore; and providing - an effective date (File 4777Purchase of Annual Maintenance for Laserfiche-DocuNav Document Imaging System awarded to VP Imaging, Inc. dba DocuNav Solutions, in the amount of $57,977.53, the first of three payments, for a total three-year maintenance agreement in the amount of $173,932.59). BACKGROUND This request covers the software license maintenance and services for the Laserfiche-DocuNav Document Imaging solution that is being used by the City of Denton for applications in the following departments: Accounting/Payroll, Budget/Treasury (Tax), Building Inspections, City Management, Fire, Human Resources, Legal, Library, Municipal Court, Municipal Judge, Planning, Police, Purchasing, Risk Management, Solid Waste Disposal, Technology Services, Wastewater Administration, Water Customer Service, Water Distribution, Water Engineering, Water Production, and Water Utility Administration. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes and access to knowledge and support resources. The Technology Services department could not identify any local vendors that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. VP Imaging, Inc., is the sole source vendor for upgrades and continued support of the Laserfiche-DocuNav integration and associated software modules of the Imaging System. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. Agenda Information Sheet September 20, 2011 Page 2 RECOMMENDATION Award to VP Imaging, Inc., DBA DocuNav Solutions, an amount of $57,977.53 for the first of three annual payments of a three-year system and services maintenance agreement in the amount of $173,932.59. The three-year maintenance agreement provides the best value to the City of Denton by taking advantage of the annual ten-percent discount of $6,094.72 for a three-year savings of $18,284.16 and by locking in the cost of the existing software services for three years. PRINCIPAL PLACE OF BUSINESS VP Imaging, Inc. Plano, Texas ESTIMATED SCHEDULE OF PROJECT Annual software license maintenance and services will cover fiscal year 2011-2012 for the Laserfiche-DocuNav Document Imaging Applications. The contract period is October 25, 2011 through October 25, 2012. FISCAL INFORMATION: Funding for this purchase order is budgeted in the fiscal year 2011-2012 Technology Services Operating Budget account number 830500.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole-Source Letter Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4777 Exhibit 1 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF CONTINUED SOFTWARE MAINTENANCE AND SERVICES FOR THE LASERFICHE-DOCUNAV DOCUMENT IMAGING SYSTEM CURRENTLY BEING USED BY THE CITY OF DENTON FROM VP IMAGING, INC., DBA DOCUNAV SOLUTIONS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS PROVIDING FOR THE EXPENDITURE - OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4777 PURCHASE OF ANNUAL MAINTENANCE FOR LASERFICHE-DOCUNAV DOCUMENT IMAGING SYSTEM AWARDED TO VP IMAGING, INC. DBA DOCUNAV SOLUTIONS, IN THE AMOUNT OF $57,977.53, THE FIRST OF THREE PAYMENTS, FOR A TOTAL THREE-YEAR MAINTENANCE AGREEMENT IN THE AMOUNT OF $173,932.59). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4777 VP Imaging, Inc. $173,932.59 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under the File 4777 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4777 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department Dispatching and Records Management available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4781-Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $205,381.50). FILE INFORMATION The City of Denton uses the VisionAir Public Safety Software Suite for managing all aspects of Public Safety Dispatching as well as managing the Public Safety Records of Police and Fire Departments. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. VisionAir, Inc. is the sole-source vendor for maintenance for the VisionAir Public Safety Software Suite of modules. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to VisionAir, Inc. in the amount of $205,381.50. PRINCIPAL PLACE OF BUSINESS VisionAir, Inc. Castle Hayne, NC Agenda Information Sheet September 20, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for the time period of October 1, 2011 through September 30, 2012. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-2012 Technology Services operating budget account 830700.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Exhibit 4: Support Calls Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4781 Exhibit 1 Invoice IVC4001993 Date 8/8/2011 Page 1 10/1/2011 Date Due tj Use r ÞÞÞuÝzz z©u- . ©, 7 .Ò;Ý ©7 a zt / ·; I ä;r b/ C ãt Bill To: Denton TX, City of 601 East Hickory, Suite E EXEMPT Tax ID: 601 East Hickory, Suite E Tiffany Wei Contact: Denton TX 76205 Tiffany.Wei@cityofdenton.com Email: Fax:(940) 349-8979 Ext. 0000 Maint. Beg. DateMaint. End DatePayment Due Date: Purchase Order No.Customer IDMaster No. 2011.2012DENPDFDTX0110/1/20119/30/201210/1/2011 QuantitItem NumbeDescriptionUnit PriceExt. Price yr 1 VMECAD002CAD 24x7 Software Suppor $42,387.59 $42,387.59 t #0000196 CAD server and workstations, #062050, #071048, #081061, #091103 GeoRela y 1 VMERMS001RMS 8x5 Software Suppor $20,869.24 $20,869.24 t #000196 RMS Server and workstations, #082008, #082093 Automated Citation Importer, #091066 RMS BarCode 1 VMEJAL001Jail 8x5 Software Suppor $5,920.86 $5,920.86 t #000196 Jail server and workstations, #057122 1 VMEMBL002Mobile 24x7 Software Suppor $90,347.50 $90,347.50 t #000196 Mobile server and clients, #082008 1 VMEFRE001Fire 8x5 Software Suppor $5,389.82 $5,389.82 t #000196 Fire server and clients 1 VMEINF001INFORM 8x5 Software Suppor $3,925.58 $3,925.58 t #017160 1 VMEOTH002Fingerprint Interface Software Suppor $2,221.56 $2,221.56 t #072053 1 GEOMTE002GeoComm GeoLynx 9-1-1 Software Suppor $7,326.98 $7,326.98 t #062050, #091099, #071048, #091103 1 GEOMTE010GeoComm GeoLynx Mobile Software Suppor $25,812.07 $25,812.07 t #062058, #071075 1 VSETRN010LMS User Subscription $780.30 $780.30 #092003 1 VOTOTH002Remote Support Connectivity (Formerly Go $400.00 $400.00 ) Tax ID 56-174732 4 Subtotal $205,381.50 Disputed Payments Mail To: VisionAIR, 5601 Misc $0.00 Barbados Boulevard, Castle Hayne, NC Tax $0.00 28429 Attn: Accounts Receivable. Questions: Call $205,381.50 Total Ext 5162. Remit to: VisionAIR, Dept AT 952157, Atlanta, GA 31192-2157 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AND ASSOCIATED MODULES USED FOR POLICE AND FIRE DEPARTMENT DISPATCHING AND RECORDS MANAGEMENT AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4781-PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AWARDED TO VISIONAIR, INC. IN THE AMOUNT OF $205,381.50). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4781 VisionAir, Inc. . $205,381.50 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4781 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 6-ORD-File 4781 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE) and 3G (third-generation) Wireless Computer Network from the Texas Department of Information Resources contract (DIR-SDD-597) for the Public Safety Mobile Computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing the expenditure of funds therfor; and providing an effective date (File 4782-Purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE), and 3G (third-generation) awarded to AT&T Mobility (DIR-SDD-597) in the amount of $129,073.00). FILE INFORMATION The City of Denton uses the AT&T Mobility EDGE/3G Network along with a dedicated network connection to AT&T Network Operations Center and the Netmotion Virtual Private Network solutions to provide Public Safety MDC (Mobile Data Computer) wireless access to the City Enterprise Network. This combination of networking, hardware and software systems provides public safety personnel direct access to public safety dispatching for Police and Fire, the Records Management System, and the Denton Repeat Offender Program. This system is certified by the Texas Law Enforcement Telecommunications System (TLETS) to access the National Criminal Justice Information System network. It is essential for the City of Denton to maintain the current wireless connectivity with the established vendor to ensure continued service and support of this network system. AT&T Mobility is the sole-source vendor for EDGE/3G wireless connectivity in the Denton area. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. If the City chose to change wireless carriers, the equipment, professional services, and telecommunication changes would cost the City approximately $130,000 and require approval from TLETS to switch to a new carrier. Therefore, continued use of the AT&T Mobility EDGE/3G network is the best value for the City of Denton. RECOMMENDATION Award to AT&T Mobility in the amount of $129,073.00. Agenda Information Sheet September 20, 2011 Page 2 PRINCIPAL PLACE OF BUSINESS AT&T Mobility Hurst, TX ESTIMATED SCHEDULE OF PROJECT Monthly access is being paid for the time period from October 1, 2011 through September 30, 2012. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2011-2012 Technology Services operating budget account 830700.7944. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4782 Exhibit 1 To: City of Denton Attn: Tiffany Wei From: Sue Northrup Government Account Executive AT&T 208 S. Akard Dallas, Tx. 75202 972.754.8937 Monthly Recurring Charge:Account # 994860867 $69.99 per line less $7.40 credit - $18.20 discount = $44.39 per line $44.39 x 202 = $8966.78 Monthly Recurring Charge: Account # 870585087 (Frame) $1599.00 per month less 26% discount $1,183.26 = net cost for T1 Frame Each IP = $3.00 per IP per month $3.00 x 202 IP addresses = $606.00 per month Grand Total of Services: $10,756.04 month with T1 Frame. AT&T Mobility is providing service to the City of Denton under the Cellular Voice and Data Access Services Contract, Contract No. DIR-SDD-597. This agreement is expected to be renewed for subsequent terms beginning October, 2011. The City of Denton is able to automatically renew their participation in this agreement unless prices increase more than 15% in one year. Respectfully submitted, Sue Northrup Confidential - 1 - August 2011 Exhibit 2 October 1, 2011 through September 30, 2012 AT&T Mobility is the sole source provider of wireless internet access compatible with the hardware utilized by the City of Denton. The agreement is expected to be renewed for subsequent terms beginning in October 2011. Sue Northrup Government Account Executive 214-754-8937 sue.northrup@att.com Confidential - 1 - August 2011 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR ENHANCED DATA RATES FOR GSM EVOLUTION (EDGE) AND 3G (THIRD-GENERATION) WIRELESS COMPUTER NETWORK FROM THE TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT (DIR-SDD-597) FOR THE PUBLIC SAFETY MOBILE COMPUTERS USED BY CITY OF DENTON POLICE, FIRE AND EMS PERSONNEL AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING THE EXPENDITURE OF FUNDS THERFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4782-PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR ENHANCED DATA RATES FOR GSM EVOLUTION (EDGE), AND 3G (THIRD- GENERATION) AWARDED TO AT&T MOBILITY (DIR-SDD-597) IN THE AMOUNT OF $129,073.00). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4782 AT&T Mobility $129,073.00 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under the File 4782 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4782 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, establishing a Street Improvement Fund; defining and committing certain fees and other revenues of the City; providing a severability clause; and providing an effective date. The Audit/Finance Committee Recommends Approval (3-0). BACKGROUND The Governmental Accounting Standards Board (GASB) has adopted Statement No. 54, which states that Special Revenue Funds are used to account for specific revenue sources that are restricted or committed to expenditures for purposes other than debt service or capital projects. In order to comply with GASB 54, the City Council must adopt an ordinance specifying its intent to create a Special Revenue Fund and commit specific revenues. In conjunction with the FY 2011-12 Proposed Budget, staff recommended the creation of a Special Revenue Fund to be called the Street Improvement Fund. In order to create this fund, staff is recommending that the City Council adopt an ordinance committing a portion of franchise fees previously accounted for in the General Fund, bond interest savings from the sale or refunding of Utility System (Electric, Water and Wastewater) debt, street cut fees, and other related revenues. This revenue will provide a dedicated mechanism to account for street maintenance and improvement activities. Furthermore, to establish a beginning fund balance in the Street Improvement Fund, a transfer of $921,779 from the General Fund FY 2010-11 unassigned fund balance to the Street Improvement Fund is proposed. These funds will allow sufficient working capital for the Street Improvement Fund in FY 2011-12. PRIOR ACTION/REVIEW On September 6, 2011, the Audit/Finance Committee discussed this item and recommended approval to the City Council. On this date, the Audit/Finance Committee also discussed the GASB 54 pronouncement in detail, and the agenda item materials related to this discussion are attached as Exhibit 1. RECOMMENDATION Staff recommends that the attached ordinance establishing the Street Improvement Fund be approved by the City Council. Agenda Information Sheet September 20, 2011 Page 2 EXHIBITS 1September 6, 2011, Audit/Finance Committee Agenda Item related to GASB 54 2 Excerpt of draft minutes from September 6, 2011, Audit/Finance Committee Meeting 3 Ordinance Respectfully Submitted: Bryan Langley Chief Financial Officer AFC AGENDA #: 5 AGENDA INFORMATION SHEET AGENDA DATE: September 6, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding implementation of Governmental Accounting Standards Board (GASB) Statement Number 54. BACKGROUND The Governmental Accounting Standards Board (GASB) released Statement No. 54 – “Fund Balance Reporting and Governmental Fund Type Definitions” on March 11, 2009, effective for the fiscal year ending on September 30, 2011. This new Statement is intended to improve the usefulness of the amount reported in fund balance by providing a more structured classification. GASB 54 applies to fund balances reported in the General Fund, the Special Revenue Funds, the Debt Service Fund and the Capital Project Fund. It does not apply to Enterprise Funds (Electric, Water, Wastewater, Solid Waste, and Airport) or Internal Service Funds (Materials Management, Fleet Services, Technology Services, Risk Management, and Health Insurance). Currently, fund balance is classified as “reserved” or “unreserved” and focuses on whether resources are available for budget appropriations. Unreserved fund balance may be further allocated into designated and undesignated classifications. GASB 54 changes how fund balance will be reported in FY 2010-11 and subsequent fiscal years. The hierarchy of the five GASB 54 classifications is as follows: 1.Non-spendable Fund Balance – includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Examples include any inventory or the principal of a permanent fund. 2.Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and hotel occupancy taxes. 3.Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision- making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Examples include the Tree Preservation Fund and Traffic Safety Fund (Red-light Cameras) passed through ordinances. 4.Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5.Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Staff has attached a comparison schedule for the General Fund, which illustrates the presentation differences of fund balance under GASB 54 for FY 2009-10. Another aspect of GASB 54 includes clarifying the existing governmental fund type definitions to improve the comparability of financial statements and help users to better understand the purposes for which governments have chosen to use particular funds. Accordingly, the following definitions have been established: General Fund – to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds – to account for and report the proceeds of specific revenue sources restricted or committed to expenditures for specific purposes other than debt service or capital projects. The restricted and committed revenue sources should be expected to comprise a substantial portion of the inflows reported in these funds. Capital Project Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays. Debt Service Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Permanent Funds – to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes supporting the reporting government’s programs. The City does not currently have any permanent funds. In addition, governments will be required to disclose more information in the notes to the financial statements about amounts reported in fund balance including: Description of authority and actions that lead to committed or assigned fund balance, The City’s policy regarding order in which restricted, committed, assigned and unassigned amounts are spent, Description of formally adopted minimum fund balance policies, The purpose of each major special revenue fund, and Encumbrances, if significant. In order to address the requirements of the GASB 54 implementation, staff is providing specific ordinances for consideration on the September 6 agenda. Specifically, the following items are being proposed: A formal fund balance policy. An ordinance establishing and committing revenues for a new Street Improvement Fund to expenditures for street maintenance and improvement activities. An ordinance committing existing fund balance as well as revenues generated by the Recreation Fund to expenditures for recreation programs. An ordinance committing existing fund balance in the Non-Airport Gas Well Fund to specifically identified expenditures. Following the recommendation of the Audit/Finance Committee, the various policies and ordinances discussed above, will be presented for consideration to the City Council at their September 20, 2011, meeting. EXHIBITS Fund Balance Comparison – General Fund Respectfully Submitted: Bryan Langley Chief Financial Officer CITY OF DENTON TEXAS , BALANCE SHEET GENERAL FUND 2010 SEPTEMBER 30 , GASB 54 Presentation on Fund Balance () General Fund ASSETS: Cash cash euivalents and investments ,q, at fair value$ 19373330 ,, Receivables net of allowances , for uncollectibles: Taxes4 208643 ,, Accrued interest83 889 , Other2 622864 ,, Interfund receivables136 235 , Due from other governments371,943 Total assets 26$ 796904 ,, LIABILITIES AND FUND BALANCES LIABILITIES: Accounts aable 2932040 py,, Due to other overnments 231 g Other liabilities 508883 , Deferred revenues1 828971 ,, Total liabilities5 270125 ,, (PRE-GASB 54 FORMAT) FUND BALANCES: Reserved for: Unreserved,, designated f or: - Unreserveddesignatedfor:- Unreserved, undesignated reported in: General fund21,526,779 Special revenue funds- Total fund balances21,526,779 Total liabilities and fund balances26,796,904$ (GASB 54 FORMAT) FUND BALANCES: endable: - Nons p Restricted for: - Committed to: - Assigned to: - Use of reserves 1,231,233 Unassigned: 20,295,546 Total fund balances 21526779 ,, Total liabilities and fund balances26,796,904$ 6. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance creating a standalone Street Improvement Fund to account for street maintenance and improvement activities. Langley explained that the FY 2011-12 Proposed Budget contemplated an $855,000 transfer from the General Fund, representing fifteen percent (15%) of the expenditures for that fund for next year. When talking with Council about doing more in street maintenance and taking one hundred percent (100%) of growth in franchise fees and putting these additional resources into street maintenance, the expenditure budget for the Street Improvement Fund had grown, and fifteen percent (15%)of that higher number is now $921,779. Council Member Watts requested that FY 2010-f the City of Denton elects to commit 100% of any increase in franchise fees over the budgeted level in 2010- 11 to account for street maintenance and improvement activities in the fiscal year ending September 30, 2012; Committee recommended that the ordinance establishing the Street Improvement Fund be forwarded to the City Council for consideration. 7. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance defining the scope, funding source, and purpose of the Recreation Fund. Langley stated that the Recreation Fund ordinance is very similar to the Street Improvement Fund except the revenue sources are different. The fund was established as a Special Revenue Fund in 1981, but staff realized the need to have an ordinance that would meet the requirements of GASB 54 and recommends that City September 30, 2011. Staff would like to put this item on the September 20 Council Meeting agenda. The Committee discussed the fees that serve as revenue sources for the Recreation Fund. Council Member Watts requested a more succinct definition of the fees used for the revenue sources for the Recreation Fund. City Manager, George Campbell, joined the meeting at 1:55 p.m. Langley offered to attach a list of all fees that serve as the revenue sources for the Recreation Fund to the agenda item that will be considered by the City Council on September 20. Assistant City Manager, Jon Fortune suggested some flexibility in listing the fees. The list should be specific in what the fees are but not so detailed that it would limit the City in the future to only those that are identified. Langley suggested that the list not be part of the ordinance but included in the backup. Fortune pointed out that in the Recreation Fund there are no facilities being paid for, only programs. Committee recommended that the ordinance establishing the Recreation Fund be forwarded to the City Council for consideration and include additional information on fees that serve as the revenue source as part of the backup. AGENDA INFORMATION SHEET AGENDA DATE: September 6, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, defining the scope, funding source and purpose of the Recreation Fund; providing a severability clause; and providing an effective date. The Audit/Finance Committee Recommends Approval (3-0). BACKGROUND The Governmental Accounting Standards Board (GASB) has adopted Statement No. 54, which states that Special Revenue Funds are used to account for specific revenue sources that are restricted or committed to expenditures for purposes other than debt service or capital projects. In order to comply with GASB 54, the City Council must adopt an ordinance defining the scope, funding source and purpose of the Recreation Fund, a Special Revenue Fund. The purpose of the Recreation Fund is to account for fee-based recreation programs and activities that are self-supporting. While the Recreation Fund has existed as a Special Revenue Fund since 1981, staff has been unable to locate a specific ordinance that would meet the intent while ensuring compliance with GASB 54. Along with objectives described above, staff is recommending that the City Council commit the unassigned fund balance contained in this fund for the fiscal year ending September 30, 2011. that the Recreation Funds will only be allowed for recreation program funding, and this action is necessary to comply with the requirements of GASB 54. Furthermore, the City Council should commit recreational program revenues/fees that are charged to recover the costs associated with the recreational programs they support. PRIOR ACTION/REVIEW On September 6, 2011, the Audit/Finance Committee discussed this item and recommended approval to the City Council. On this date, the Audit/Finance Committee also discussed the GASB 54 pronouncement in detail, and the agenda item materials related to this discussion are attached as Exhibit 1. During the September 6 meeting, the Audit/Finance Committee requested a detailed listing of the activities that are accounted for in the Recreation Fund. Attached as Exhibit 3 is a listing of the principal activities that are accounted for in the Recreation Fund. Agenda Information Sheet September 20, 2011 Page 2 RECOMMENDATION Staff recommends that an ordinance defining the scope, funding source and purpose of the Recreation Fund be approved by the City Council. EXHIBITS 1 September 6, 2011, Audit/Finance Committee Agenda Item related to GASB 54 2 Excerpt of draft minutes from September 6, 2011, Audit/Finance Committee Meeting 3 Recreation Fund Activities 4 Ordinance Respectfully Submitted: Bryan Langley Chief Financial Officer AFC AGENDA #: 5 AGENDA INFORMATION SHEET AGENDA DATE: September 6, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding implementation of Governmental Accounting Standards Board (GASB) Statement Number 54. BACKGROUND The Governmental Accounting Standards Board (GASB) released Statement No. 54 – “Fund Balance Reporting and Governmental Fund Type Definitions” on March 11, 2009, effective for the fiscal year ending on September 30, 2011. This new Statement is intended to improve the usefulness of the amount reported in fund balance by providing a more structured classification. GASB 54 applies to fund balances reported in the General Fund, the Special Revenue Funds, the Debt Service Fund and the Capital Project Fund. It does not apply to Enterprise Funds (Electric, Water, Wastewater, Solid Waste, and Airport) or Internal Service Funds (Materials Management, Fleet Services, Technology Services, Risk Management, and Health Insurance). Currently, fund balance is classified as “reserved” or “unreserved” and focuses on whether resources are available for budget appropriations. Unreserved fund balance may be further allocated into designated and undesignated classifications. GASB 54 changes how fund balance will be reported in FY 2010-11 and subsequent fiscal years. The hierarchy of the five GASB 54 classifications is as follows: 1.Non-spendable Fund Balance – includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Examples include any inventory or the principal of a permanent fund. 2.Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and hotel occupancy taxes. 3.Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision- making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Examples include the Tree Preservation Fund and Traffic Safety Fund (Red-light Cameras) passed through ordinances. 4.Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5.Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Staff has attached a comparison schedule for the General Fund, which illustrates the presentation differences of fund balance under GASB 54 for FY 2009-10. Another aspect of GASB 54 includes clarifying the existing governmental fund type definitions to improve the comparability of financial statements and help users to better understand the purposes for which governments have chosen to use particular funds. Accordingly, the following definitions have been established: General Fund – to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds – to account for and report the proceeds of specific revenue sources restricted or committed to expenditures for specific purposes other than debt service or capital projects. The restricted and committed revenue sources should be expected to comprise a substantial portion of the inflows reported in these funds. Capital Project Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays. Debt Service Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Permanent Funds – to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes supporting the reporting government’s programs. The City does not currently have any permanent funds. In addition, governments will be required to disclose more information in the notes to the financial statements about amounts reported in fund balance including: Description of authority and actions that lead to committed or assigned fund balance, The City’s policy regarding order in which restricted, committed, assigned and unassigned amounts are spent, Description of formally adopted minimum fund balance policies, The purpose of each major special revenue fund, and Encumbrances, if significant. In order to address the requirements of the GASB 54 implementation, staff is providing specific ordinances for consideration on the September 6 agenda. Specifically, the following items are being proposed: A formal fund balance policy. An ordinance establishing and committing revenues for a new Street Improvement Fund to expenditures for street maintenance and improvement activities. An ordinance committing existing fund balance as well as revenues generated by the Recreation Fund to expenditures for recreation programs. An ordinance committing existing fund balance in the Non-Airport Gas Well Fund to specifically identified expenditures. Following the recommendation of the Audit/Finance Committee, the various policies and ordinances discussed above, will be presented for consideration to the City Council at their September 20, 2011, meeting. EXHIBITS Fund Balance Comparison – General Fund Respectfully Submitted: Bryan Langley Chief Financial Officer CITY OF DENTON TEXAS , BALANCE SHEET GENERAL FUND 2010 SEPTEMBER 30 , GASB 54 Presentation on Fund Balance () General Fund ASSETS: Cash cash euivalents and investments ,q, at fair value$ 19373330 ,, Receivables net of allowances , for uncollectibles: Taxes4 208643 ,, Accrued interest83 889 , Other2 622864 ,, Interfund receivables136 235 , Due from other governments371,943 Total assets 26$ 796904 ,, LIABILITIES AND FUND BALANCES LIABILITIES: Accounts aable 2932040 py,, Due to other overnments 231 g Other liabilities 508883 , Deferred revenues1 828971 ,, Total liabilities5 270125 ,, (PRE-GASB 54 FORMAT) FUND BALANCES: Reserved for: Unreserved,, designated f or: - Unreserveddesignatedfor:- Unreserved, undesignated reported in: General fund21,526,779 Special revenue funds- Total fund balances21,526,779 Total liabilities and fund balances26,796,904$ (GASB 54 FORMAT) FUND BALANCES: endable: - Nons p Restricted for: - Committed to: - Assigned to: - Use of reserves 1,231,233 Unassigned: 20,295,546 Total fund balances 21526779 ,, Total liabilities and fund balances26,796,904$ 6. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance creating a standalone Street Improvement Fund to account for street maintenance and improvement activities. Langley explained that the FY 2011-12 Proposed Budget contemplated an $855,000 transfer from the General Fund, representing fifteen percent (15%) of the expenditures for that fund for next year. When talking with Council about doing more in street maintenance and taking one hundred percent (100%) of growth in franchise fees and putting these additional resources into street maintenance, the expenditure budget for the Street Improvement Fund had grown, and fifteen percent (15%)of that higher number is now $921,779. Council Member Watts requested that FY 2010-f the City of Denton elects to commit 100% of any increase in franchise fees over the budgeted level in 2010- 11 to account for street maintenance and improvement activities in the fiscal year ending September 30, 2012; Committee recommended that the ordinance establishing the Street Improvement Fund be forwarded to the City Council for consideration. 7. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance defining the scope, funding source, and purpose of the Recreation Fund. Langley stated that the Recreation Fund ordinance is very similar to the Street Improvement Fund except the revenue sources are different. The fund was established as a Special Revenue Fund in 1981, but staff realized the need to have an ordinance that would meet the requirements of GASB 54 and recommends that City September 30, 2011. Staff would like to put this item on the September 20 Council Meeting agenda. The Committee discussed the fees that serve as revenue sources for the Recreation Fund. Council Member Watts requested a more succinct definition of the fees used for the revenue sources for the Recreation Fund. City Manager, George Campbell, joined the meeting at 1:55 p.m. Langley offered to attach a list of all fees that serve as the revenue sources for the Recreation Fund to the agenda item that will be considered by the City Council on September 20. Assistant City Manager, Jon Fortune suggested some flexibility in listing the fees. The list should be specific in what the fees are but not so detailed that it would limit the City in the future to only those that are identified. Langley suggested that the list not be part of the ordinance but included in the backup. Fortune pointed out that in the Recreation Fund there are no facilities being paid for, only programs. Committee recommended that the ordinance establishing the Recreation Fund be forwarded to the City Council for consideration and include additional information on fees that serve as the revenue source as part of the backup. EXHIBIT 3 PARKS AND RECREATION DEPARTMENT REVENUES BY FUND Recreation Fund ACTIVITYDESCRIPTION Concession SalesSales of drinks and snacks at Parks and Recreation events. Recreational ClassesFitness, dance, yoga, zumba, swimming lessons, pre-school progra etc. Recreational Sports LeaguesSoftball, basketball, dodgeball, volleyball, indoor soccer, etc. After school programming at various recreation centers throughou After School Care City for Denton ISD students. Summer CampsYouth summer camps and outdoor nature programs. Fitness MembershipsMembership fees at each recreation center. Special Events/ActivitiesLiberty Run, Reindeer Romp, Seniorcise, Outdoor Nature Programs, Climbing, Dog Obedience Lessons, Senior Travel Programs, etc. Note: Recreation Fund programs are supported by the user fees c General Fund ACTIVITYDESCRIPTION Natatorium/Water ParkAll fees collected for facility rentals, admissions, annual pass concession sales, swim lessons, locker rentals, and special even Facility rental fees for parks, pavilions, gymnasiums, athletic Park Facilities general-purpose rooms. CemeteryPlot sales, burial/interment permit and monument permits. Recreation CentersRecreation passes for use of free-play areas, rental fees, and a sales at the Civic Center Pool, and athletic program fees paid b sponsored groups (DBBI, DSA, DYFL). MiscellaneousVendor permits and special event application fees. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, defining the scope, funding source and purpose of the Non-Airport Gas Well Fund; providing a severability clause; and providing an effective date. The Audit/Finance Committee Recommends Approval (3-0). BACKGROUND The Governmental Accounting Standards Board (GASB) has adopted Statement No. 54, which states that Special Revenue Funds are used to account for specific revenue sources that are restricted or committed to expenditures for purposes other than debt service or capital projects. In order to comply with GASB 54, the City Council must adopt an ordinance defining the scope, funding source, and purpose of the Non-Airport Gas Well Fund, a Special Revenue Fund. T regarding the Non-Airport Gas Well Fund and ensure compliance with GASB 54. The purpose of this fund is to account for royalties produced from gas wells and gas well pooling agreements associated with City owned property, other than Airport or Parks property, and property in which the City retains or has an ownership of mineral rights (example, Vintage Parkway). In prior years, property and sales taxes associated with gas wells were also deposited in this fund, but this practice was discontinued in FY 2009-10. Along with the objectives described above, staff is recommending that the City Council commit the unassigned fund balance contained in this fund for the fiscal year ending September 30, 2011 for the purpose of funding one-time, non-operating projects. The term fund balance will only be allowed for one-time, non- operating projects and this action is necessary to comply with the requirements of GASB 54. Since staff anticipates that this fund will contain little or no fund balance at the end of the fiscal year ending September 30, 2012, it is anticipated that this fund will be closed at the conclusion of FY 2011-12 and any residual amounts will be transferred to the General Fund. PRIOR ACTION/REVIEW On September 6, 2011, the Audit/Finance Committee discussed this item and recommended approval to the City Council. On this date, the Audit/Finance Committee also discussed the GASB 54 pronouncement in detail, and the agenda item materials related to this discussion are attached as Exhibit 1. Agenda Information Sheet September 20, 2011 Page 2 RECOMMENDATION Staff recommends that the attached ordinance defining the scope, funding source and purpose of the Non-Airport Gas Well Fund be approved by the City Council. EXHIBITS 1 September 6, 2011, Audit/Finance Committee Agenda Item related to GASB 54 2 Excerpt of draft minutes from September 6, 2011, Audit/Finance Committee Meeting 3 - Ordinance Respectfully Submitted: Bryan Langley Chief Financial Officer AFC AGENDA #: 5 AGENDA INFORMATION SHEET AGENDA DATE: September 6, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding implementation of Governmental Accounting Standards Board (GASB) Statement Number 54. BACKGROUND The Governmental Accounting Standards Board (GASB) released Statement No. 54 – “Fund Balance Reporting and Governmental Fund Type Definitions” on March 11, 2009, effective for the fiscal year ending on September 30, 2011. This new Statement is intended to improve the usefulness of the amount reported in fund balance by providing a more structured classification. GASB 54 applies to fund balances reported in the General Fund, the Special Revenue Funds, the Debt Service Fund and the Capital Project Fund. It does not apply to Enterprise Funds (Electric, Water, Wastewater, Solid Waste, and Airport) or Internal Service Funds (Materials Management, Fleet Services, Technology Services, Risk Management, and Health Insurance). Currently, fund balance is classified as “reserved” or “unreserved” and focuses on whether resources are available for budget appropriations. Unreserved fund balance may be further allocated into designated and undesignated classifications. GASB 54 changes how fund balance will be reported in FY 2010-11 and subsequent fiscal years. The hierarchy of the five GASB 54 classifications is as follows: 1.Non-spendable Fund Balance – includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Examples include any inventory or the principal of a permanent fund. 2.Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and hotel occupancy taxes. 3.Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision- making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Examples include the Tree Preservation Fund and Traffic Safety Fund (Red-light Cameras) passed through ordinances. 4.Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5.Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Staff has attached a comparison schedule for the General Fund, which illustrates the presentation differences of fund balance under GASB 54 for FY 2009-10. Another aspect of GASB 54 includes clarifying the existing governmental fund type definitions to improve the comparability of financial statements and help users to better understand the purposes for which governments have chosen to use particular funds. Accordingly, the following definitions have been established: General Fund – to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds – to account for and report the proceeds of specific revenue sources restricted or committed to expenditures for specific purposes other than debt service or capital projects. The restricted and committed revenue sources should be expected to comprise a substantial portion of the inflows reported in these funds. Capital Project Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays. Debt Service Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Permanent Funds – to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes supporting the reporting government’s programs. The City does not currently have any permanent funds. In addition, governments will be required to disclose more information in the notes to the financial statements about amounts reported in fund balance including: Description of authority and actions that lead to committed or assigned fund balance, The City’s policy regarding order in which restricted, committed, assigned and unassigned amounts are spent, Description of formally adopted minimum fund balance policies, The purpose of each major special revenue fund, and Encumbrances, if significant. In order to address the requirements of the GASB 54 implementation, staff is providing specific ordinances for consideration on the September 6 agenda. Specifically, the following items are being proposed: A formal fund balance policy. An ordinance establishing and committing revenues for a new Street Improvement Fund to expenditures for street maintenance and improvement activities. An ordinance committing existing fund balance as well as revenues generated by the Recreation Fund to expenditures for recreation programs. An ordinance committing existing fund balance in the Non-Airport Gas Well Fund to specifically identified expenditures. Following the recommendation of the Audit/Finance Committee, the various policies and ordinances discussed above, will be presented for consideration to the City Council at their September 20, 2011, meeting. EXHIBITS Fund Balance Comparison – General Fund Respectfully Submitted: Bryan Langley Chief Financial Officer CITY OF DENTON TEXAS , BALANCE SHEET GENERAL FUND 2010 SEPTEMBER 30 , GASB 54 Presentation on Fund Balance () General Fund ASSETS: Cash cash euivalents and investments ,q, at fair value$ 19373330 ,, Receivables net of allowances , for uncollectibles: Taxes4 208643 ,, Accrued interest83 889 , Other2 622864 ,, Interfund receivables136 235 , Due from other governments371,943 Total assets 26$ 796904 ,, LIABILITIES AND FUND BALANCES LIABILITIES: Accounts aable 2932040 py,, Due to other overnments 231 g Other liabilities 508883 , Deferred revenues1 828971 ,, Total liabilities5 270125 ,, (PRE-GASB 54 FORMAT) FUND BALANCES: Reserved for: Unreserved,, designated f or: - Unreserveddesignatedfor:- Unreserved, undesignated reported in: General fund21,526,779 Special revenue funds- Total fund balances21,526,779 Total liabilities and fund balances26,796,904$ (GASB 54 FORMAT) FUND BALANCES: endable: - Nons p Restricted for: - Committed to: - Assigned to: - Use of reserves 1,231,233 Unassigned: 20,295,546 Total fund balances 21526779 ,, Total liabilities and fund balances26,796,904$ 8. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance defining the scope, funding source, and purpose of the Non-Airport Gas Well Fund. Langley shared information on funding one-time projects not specified in the ordinance. The projects are for the potential purchase of property and comprehensive plan update. This ordinance is required to get this in compliance with GASB 54. There is no additional income stream into this fund. Once the current funds are spent, this fund will be closed. Committee recommended that the ordinance defining the scope, funding source and purpose of the Non-Airport Gas Well fund be forwarded to the City Council for consideration. 9. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance establishing a fund balance policy for each of the m Langley stated the need to have a fund balance policy to be compliant with GASB 54. Staff has developed that policy with definitions and categories and a policy on unassigned fund balance. In the General Fund , the policy is that Fund Balance will be maintained at twenty percent (20%) of budgeted expenditures but will be allowed to go as low as fifteen percent (15%) if within a five year period, we can restore the reserve balance to the twenty percent (20%). This allows flexibility in the case of economic recession or if there is a need to draw the fund balance down for a short period of time. We have also included information for the non-governmental fund balances. GASB 54 does not require a fund balance policy for non-governmental funds, but staff has included proposed policies for each of the utility funds. These policies are consistent with what has been discussed with the City Council and PUB during the development of the FY 2011-12 Budget. Following a short discussion on the need to have this policy in place, the Committee recommended that the ordinance establishing a fund balance policy for each of the major operating funds be forwarded to the City Council for consideration. 10. Receive a report, hold a discussion, and give staff direction regarding a planned upgrade of the JD Edwards financial software system. Kevin Gunn, Director of Technology Services, gave the Committee a report on the JD Edwards software system, the current status, the need for a planned upgrade, and the cost involved in the process of upgrading the system. Langley reminded the Committee that the JE Edwards upgrade was discussed during the budget process. Staff is not requesting formal approval but wanted to bring this back to you before the budget is approved on September 20 for any questions or additional information you may request. Following the evaluation by staff, the recommended firm to perform the upgrade will be discussed with this Committee on November 8 and a professional services contract will be presented to Council for consideration on November 15, 2011. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, adopting Governmental Accountin policy; and providing an effective date. The Audit/Finance Committee Recommends Approval (3-0). BACKGROUND The Governmental Accounting Standards Board (GASB) released Statement No. 54 , effective for the fiscal year ending on September 30, 2011. This new Statement is intended to improve the usefulness of the amount reported in fund balance by providing a more structured classification. As part of GASB 54, governments are required to adopt and disclose information in the notes to the financial statements about amounts reported in fund balance. This additional information will include: Description of authority and actions that lead to committed or assigned fund balance, the order in which restricted, committed, assigned and unassigned amounts are spent, Description of formally adopted minimum fund balance policies. It is essential that governments maintain adequate levels of fund balance to mitigate current and future risks. und balance goals, staff had attached a proposed fund balance policy for your review. The proposed fund balance policy is consistent with the funding parameters that have been discussed with the City Council and the Public Utilities Board (PUB) during the development of the FY 2011-12 Budget. PRIOR ACTION/REVIEW On September 6, 2011, the Audit/Finance Committee discussed this item and recommended approval to the City Council. On this date, the Audit/Finance Committee also discussed the GASB 54 pronouncement in detail, and the agenda item materials related to this discussion are attached as Exhibit 1. RECOMMENDATION Staff recommends that the City Council approve the fund balance policy which is described in the attached ordinance. Agenda Information Sheet September 20, 2011 Page 2 EXHIBITS 1September 6, 2011, Audit/Finance Committee Agenda Item related to GASB 54 2 Excerpt of draft minutes from September 6, 2011, Audit/Finance Committee Meeting 3 Ordinance Respectfully Submitted: Bryan Langley Chief Financial Officer AFC AGENDA #: 5 AGENDA INFORMATION SHEET AGENDA DATE: September 6, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding implementation of Governmental Accounting Standards Board (GASB) Statement Number 54. BACKGROUND The Governmental Accounting Standards Board (GASB) released Statement No. 54 – “Fund Balance Reporting and Governmental Fund Type Definitions” on March 11, 2009, effective for the fiscal year ending on September 30, 2011. This new Statement is intended to improve the usefulness of the amount reported in fund balance by providing a more structured classification. GASB 54 applies to fund balances reported in the General Fund, the Special Revenue Funds, the Debt Service Fund and the Capital Project Fund. It does not apply to Enterprise Funds (Electric, Water, Wastewater, Solid Waste, and Airport) or Internal Service Funds (Materials Management, Fleet Services, Technology Services, Risk Management, and Health Insurance). Currently, fund balance is classified as “reserved” or “unreserved” and focuses on whether resources are available for budget appropriations. Unreserved fund balance may be further allocated into designated and undesignated classifications. GASB 54 changes how fund balance will be reported in FY 2010-11 and subsequent fiscal years. The hierarchy of the five GASB 54 classifications is as follows: 1.Non-spendable Fund Balance – includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Examples include any inventory or the principal of a permanent fund. 2.Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and hotel occupancy taxes. 3.Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision- making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Examples include the Tree Preservation Fund and Traffic Safety Fund (Red-light Cameras) passed through ordinances. 4.Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5.Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Staff has attached a comparison schedule for the General Fund, which illustrates the presentation differences of fund balance under GASB 54 for FY 2009-10. Another aspect of GASB 54 includes clarifying the existing governmental fund type definitions to improve the comparability of financial statements and help users to better understand the purposes for which governments have chosen to use particular funds. Accordingly, the following definitions have been established: General Fund – to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds – to account for and report the proceeds of specific revenue sources restricted or committed to expenditures for specific purposes other than debt service or capital projects. The restricted and committed revenue sources should be expected to comprise a substantial portion of the inflows reported in these funds. Capital Project Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays. Debt Service Funds – to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Permanent Funds – to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes supporting the reporting government’s programs. The City does not currently have any permanent funds. In addition, governments will be required to disclose more information in the notes to the financial statements about amounts reported in fund balance including: Description of authority and actions that lead to committed or assigned fund balance, The City’s policy regarding order in which restricted, committed, assigned and unassigned amounts are spent, Description of formally adopted minimum fund balance policies, The purpose of each major special revenue fund, and Encumbrances, if significant. In order to address the requirements of the GASB 54 implementation, staff is providing specific ordinances for consideration on the September 6 agenda. Specifically, the following items are being proposed: A formal fund balance policy. An ordinance establishing and committing revenues for a new Street Improvement Fund to expenditures for street maintenance and improvement activities. An ordinance committing existing fund balance as well as revenues generated by the Recreation Fund to expenditures for recreation programs. An ordinance committing existing fund balance in the Non-Airport Gas Well Fund to specifically identified expenditures. Following the recommendation of the Audit/Finance Committee, the various policies and ordinances discussed above, will be presented for consideration to the City Council at their September 20, 2011, meeting. EXHIBITS Fund Balance Comparison – General Fund Respectfully Submitted: Bryan Langley Chief Financial Officer CITY OF DENTON TEXAS , BALANCE SHEET GENERAL FUND 2010 SEPTEMBER 30 , GASB 54 Presentation on Fund Balance () General Fund ASSETS: Cash cash euivalents and investments ,q, at fair value$ 19373330 ,, Receivables net of allowances , for uncollectibles: Taxes4 208643 ,, Accrued interest83 889 , Other2 622864 ,, Interfund receivables136 235 , Due from other governments371,943 Total assets 26$ 796904 ,, LIABILITIES AND FUND BALANCES LIABILITIES: Accounts aable 2932040 py,, Due to other overnments 231 g Other liabilities 508883 , Deferred revenues1 828971 ,, Total liabilities5 270125 ,, (PRE-GASB 54 FORMAT) FUND BALANCES: Reserved for: Unreserved,, designated f or: - Unreserveddesignatedfor:- Unreserved, undesignated reported in: General fund21,526,779 Special revenue funds- Total fund balances21,526,779 Total liabilities and fund balances26,796,904$ (GASB 54 FORMAT) FUND BALANCES: endable: - Nons p Restricted for: - Committed to: - Assigned to: - Use of reserves 1,231,233 Unassigned: 20,295,546 Total fund balances 21526779 ,, Total liabilities and fund balances26,796,904$ 8. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance defining the scope, funding source, and purpose of the Non-Airport Gas Well Fund. Langley shared information on funding one-time projects not specified in the ordinance. The projects are for the potential purchase of property and comprehensive plan update. This ordinance is required to get this in compliance with GASB 54. There is no additional income stream into this fund. Once the current funds are spent, this fund will be closed. Committee recommended that the ordinance defining the scope, funding source and purpose of the Non-Airport Gas Well fund be forwarded to the City Council for consideration. 9. Receive a report, hold a discussion, and give staff direction regarding the adoption of an ordinance establishing a fund balance policy for each of the m Langley stated the need to have a fund balance policy to be compliant with GASB 54. Staff has developed that policy with definitions and categories and a policy on unassigned fund balance. In the General Fund , the policy is that Fund Balance will be maintained at twenty percent (20%) of budgeted expenditures but will be allowed to go as low as fifteen percent (15%) if within a five year period, we can restore the reserve balance to the twenty percent (20%). This allows flexibility in the case of economic recession or if there is a need to draw the fund balance down for a short period of time. We have also included information for the non-governmental fund balances. GASB 54 does not require a fund balance policy for non-governmental funds, but staff has included proposed policies for each of the utility funds. These policies are consistent with what has been discussed with the City Council and PUB during the development of the FY 2011-12 Budget. Following a short discussion on the need to have this policy in place, the Committee recommended that the ordinance establishing a fund balance policy for each of the major operating funds be forwarded to the City Council for consideration. 10. Receive a report, hold a discussion, and give staff direction regarding a planned upgrade of the JD Edwards financial software system. Kevin Gunn, Director of Technology Services, gave the Committee a report on the JD Edwards software system, the current status, the need for a planned upgrade, and the cost involved in the process of upgrading the system. Langley reminded the Committee that the JE Edwards upgrade was discussed during the budget process. Staff is not requesting formal approval but wanted to bring this back to you before the budget is approved on September 20 for any questions or additional information you may request. Following the evaluation by staff, the recommended firm to perform the upgrade will be discussed with this Committee on November 8 and a professional services contract will be presented to Council for consideration on November 15, 2011. CITY OF DENTON FUND BALANCE POLICY Purpose and Overview The purpose of this policy is to establish guidelines for fund balance levels within each of City of Denton’s funds. It is essential that the City maintain adequate levels of fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, or adverse circumstances. The fund balance level is also designed to provide an appropriate amount of working capital for the City’s general operations. In general, the City of Denton should strive to avoid appropriating fund balance for recurring expenses. However, in the event that fund balance is used to support recurring expenses, the budget should clearly identify the uses of fund balance and provide an explanation of the circumstances requiring the use of fund balance. In addition, the budget should also address the future potential uses of fund balance for operating expenditures. Definitions and Categories Fund Balance – Defined as the difference between a fund’s assets and liabilities. According to the Governmental Accounting Standards Board (GASB) statement number 54, fund balance must be allocated into one the following five categories: 1.Non-spendable Fund Balance – includes amounts that are not in a spendable form or are legally or contractually required to be maintained intact. Examples include inventory or endowments. 2.Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and hotel occupancy taxes. 3.Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. 4.Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5.Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Note: The above fund balance categories only apply to governmental funds. Fund Balance Policy Committed Fund Balance The City Council is the City’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance adopted by the City Council. The ordinance must either adopt or rescind the commitment, as applicable, prior to FUND BALANCE POLICY (Continued) the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. Assigned Fund Balance The City Council authorizes the City Manager or his/her designee as the official authorized person to assign fund balance to a specific purpose approved by this fund balance policy. Order of Expenditure of Fund Balance When multiple categories of fund balance are available for expenditure and approved for use by the City Council (for example, a construction project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds. Normally this would result in the use of restricted, then committed, then assigned, and lastly, unassigned fund balance. Minimum Unassigned Fund Balance It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 20% of budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. The fund balance level, however, may be reduced to the equivalent of 15% of budgeted expenditures in unusual financial circumstances. However, if such a situation occurs, the City will implement necessary corrective action within a five-year plan to restore the unassigned fund balance to the equivalent of twenty percent (20%) of budgeted expenditures. Non-governmental fund balances The fund balance categories discussed above do not apply to proprietary funds according to GASB 54. While not required by the GASB, the City recognizes the need to apply a minimum balance policy to the proprietary funds maintained by the City. Therefore, the City shall maintain a minimum ending working capital balance (current assets minus current liabilities) of at least eight percent (8%) of budgeted expenditures for each of the proprietary funds. If the working capital level should fall below the desired minimum, the City will implement necessary corrective action within a five-year plan to restore the working capital balance to 8% of budgeted expenditures. Additionally, for the Electric, Water, Wastewater, and Solid Waste funds, minimum rate stabilization reserve balance levels are also established according to the unique operational aspects of each utility. The rate stabilization funds are intended to minimize the fluctuation in rates due to unforeseen revenue and expenditure variances. The minimum rate stabilization balance is established as 12% of expenses for the Electric and Wastewater funds, 16% of expenses for the Water fund, and 4% of expenses for the Solid Waste fund. If the rate stabilization balance falls below the desired level, the City will implement necessary corrective action within a five-year plan to restore the rate stabilization balances to the levels outlined above. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Utilities Administration UTILITIES ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates contained in Ordinance No. 2010-288 for electric service; deleting interruptable power supply (Schedule UPS); amend commercial renewable energy service rider (Schedule CGR) to increase term of agreement and to define participation requirement; amend residential renewable energy service rider (Schedule RG) to define participation requirement; amend general service time of use (Schedule TGS) to define participation requirement; amend economic growth rider (Schedule EGR) to define participation requirement; amend greensense energy efficiency rebate program (Schedule GRP) to define participation requirement; amend distributed generation from renewable sources rider (Schedule DGR) to define participation requirement; providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND The attached Electric Rate Ordinance includes no rate increases, deletes one (1) rate, amends one (1) rate, and clarifies the intent of six (6) rates. Deletes “Uninterruptible Power Supply” (Schedule UPS) due to lack of participation. Amends “Commercial Renewable Energy Service Rider” (Schedule CGR) to increase the contract term from six (6) months to twelve (12) months to be consistent with the wholesale purchase of renewable energy credits. Amends Supplementary Rates to add/clarify participation requirement. “Economic Growth Rider” (Schedule EGR) “General Service Time of Use” (Schedule TGS) “Residential Renewable Energy Service” (Schedule RG) “Commercial Renewable Energy Service Rider” (Schedule CGR) “GreenSense Energy Efficiency Rebate Program” (Schedule GRP) “Distributed Generation From Renewable Sources Rider” (Schedule DGR) FISCAL SUMMARY The rates and charges included in the Electric rate ordinance provide the revenues necessary to cover the cost of service to customers and revenues necessary to fund the FY 2011-2012 Annual AIS – CC Agenda September 20, 2011 Page 2 of 2 Program of Services and associated FY 2012-2016 CIP. The Electric rate ordinance proposes no base rate increase for FY 2011-2012. PRIOR ACTION The proposed FY 2011-2012 Electric utility budget and CIP were presented and approved by the Public Utilities Board (“PUB”) during May and June, 2011. This rate ordinance was presented and discussed by the PUB on July 25, and approved for recommendation to City Council on August 8, 2011. The draft rate ordinance was sent to the Council for review on August 10, 2011. The proposed electric rate ordinance included in this agenda item is designed to recover the cost of service for the Electric utility and provide a positive or break-even net income. RECOMMENDATION PUB recommends approval of the proposed ordinance by a vote of 5-0, with an effective date of October 1, 2011. EXHIBIT 1. Proposed FY2011-2012 Electric Rate Ordinance Respectfully submitted, Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2011-_______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 2010-288 FOR ELECTRIC SERVICE; DELETING INTERRUPTABLE POWER SUPPLY (SCHEDULE UPS); AMEND COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (SCHEDULE CGR) TO INCREASE TERM OF AGREEMENT AND TO DEFINE PARTICIPATION REQUIREMENT; AMEND RESIDENTIAL RENEWABLE ENERGY SERVICE RIDER (SCHEDULE RG) TO DEFINE PARTICIPATION REQUIREMENT; AMEND GENERAL SERVICE TIME OF USE (SCHEDULE TGS) TO DEFINE PARTICIPATION REQUIREMENT; AMEND ECONOMIC GROWTH RIDER (SCHEDULE EGR) TO DEFINE PARTICIPATION REQUIREMENT; AMEND GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (SCHEDULE GRP) TO DEFINE PARTICIPATION REQUIREMENT; AMEND DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (SCHEDULE DGR) TO DEFINE PARTICIPATION REQUIREMENT; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: ELECTRIC RATE SCHEDULES PAGE RES Residential Service 3 RG Residential Renewable Energy Service Rider 5 GSS General Service Small 7 GSM General Service Medium 9 GSL General Service Large 11 TGS General Service Time of Use 13 G2 Local Government Small 16 G1 Local Government 18 WK Weekend Service 20 AF Athletic Field 22 LS Street Lighting 24 LT Traffic Lighting 25 UFL Unmetered School Zone/Crossing Flashers 26 ULT Unmetered Traffic Lighting 27 USC Unmetered Security Camera 28 LO Other Lighting 29 DD Security Lighting 31 DDL Decorative Downtown Lighting 33 DSL Non Standard Street Lighting 34 T1 Temporary Service 36 EGR Economic Growth Rider 38 GRP GreenSense Energy Efficiency Rebate Program 40 ECA Energy Cost Adjustment 41 RCA Renewable Cost Adjustment 43 1 DGR Distributed Generation From Renewable Sources Rider 45 IWG Independent Wholesale Generator Rider 47 CGR Commercial Renewable Energy Service Rider 50 SFR Special Facilities Rider 52 DFR Dark Fiber Rate 53 2 SCHEDULE RES RESIDENTIAL SERVICE (Effective 10/01/11) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of November through April May through October (1) Facility Charge Single-Phase $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge 3 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 4 SCHEDULE RG RESIDENTIAL RENEWABLE ENERGY SERVICE RIDER (Effective 10/01/11) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Residential Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Residential Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE WINTER SUMMER Billing Months of Billing Months of November through April May through October (1) Facility Charge $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh All Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Renewable Cost Adjustment Charge See Schedule RCA See Schedule RCA 5 TERM Customers wishing to receive Renewable Energy Service must sign a Residential Renewable Energy Agreement and commit to accept this service for a minimum term of 6 months. At the end of each 6 month period, a customer’s Renewable Energy Service will be extended for another 6 month period unless that customer provides a written request to terminate that service to the City of Denton Customer Service Department 15 days prior to the end of the then-current 6-month participation period. MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 6 SCHEDULE GSS GENERAL SERVICE SMALL (Effective 10/01/11) APPLICATION The General Service Small (GSS) rate is applicable to any commercial or industrial customer having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month is equal to or exceeds 21.0 kW, billing will be made under the Rate Schedule GSM and Customer must remain on the GSM rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Additional kWh 3.67¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block 7 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 8 SCHEDULE GSM GENERAL SERVICE MEDIUM (Effective 10/01/11) APPLICATION The General Service Medium (GSM) rate is applicable to any commercial or industrial customer having a maximum demand that meets or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $4.00/kW (all kW) plus; (3) Energy Charge per billing period First 6,000 kWh 4.43¢/kWh Additional kWh 3.66¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 9 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kW demand as measured during the fifteen (15) minute period of maximum use each month; or (2) seventy percent (70%) of the maximum monthly actual demand for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GM1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GM2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GM3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 10 SCHEDULE GSL GENERAL SERVICE LARGE (Effective 10/01/11) APPLICATION The General Service Large (GSL) Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge $65.55/bill plus; (2) Demand Charge $9.33/kVA (Minimum of 250 kVA billed) plus; (3) Energy Charge per billing period First 200,000 kWh 2.14¢/kWh Additional kWh 1.21¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 11 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kVA demand as measured during the fifteen (15) minute period of maximum use each month; or (2) 250 kVA; or (3) seventy percent (70%) of the maximum monthly kVA actual demand for any month during the previous billing months of May through October in the twelve (12) month period ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GL1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GL2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GL3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 12 SCHEDULE TGS GENERAL SERVICE TIME OF USE (Effective 10/01/11) APPLICATION Applicable to any customer having a minimum demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the General Service Time of Use rate and to mitigate potential risk to ratepayers, any participant in the General Service Time of Use rate must be, at the time this rate is applied for and continuing while such rate is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE (1) Facility Charge $76.45/bill plus; (2) On-Peak Demand Charge $11.87/kVA plus; (3) Off-Peak Demand Charge $2.34/kVA plus; (4) Energy Charge per billing period 0.71¢/kWh plus; (5) Energy Cost Adjustment Charge See Schedule ECA 13 MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1)The Facility Charge, plus; (2)The Off-Peak Demand Charge, plus; (3)The On-Peak Demand Charge DEFINITION OF ON-PEAK HOURS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September excluding Independence Day and Labor Day. The City's on-peak hours may be changed from time to time. DEFINITION OF OFF-PEAK HOURS The City's system (off-peak) hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. DETERMINATION OF ON-PEAK DEMAND The demand used in calculating the On-Peak Demand Charge for the billing period shall be the greater of: (1) the kVA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-peak hours as recorded by the City's demand meter, or (2) one hundred percent (100%) of the actual maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. The On Peak Demand Charge will be applied to each billing period. DETERMINATION OF OFF-PEAK DEMAND The demand used in calculating the Off-Peak Demand Charge for the billing period shall be the actual kVA demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The Off-Peak Demand Charge will be applied to each billing period. DETERMINATION OF DEMAND BILLING FOR CUSTOMERS WITH NO PEAK DEMAND HISTORY DURING OFF-PEAK MONTHS 14 If the Customer is new or does not have a history of on-peak use for June through September, and elects to accept service on the TGS rate, the Customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (TG1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (TG2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (TG3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 15 SCHEDULE G2 LOCAL GOVERNMENT SERVICE SMALL (Effective 10/01/11) APPLICATION Applicable to any local City, County or School District having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month equals or exceeds 21.0 kW, billing will be made under the Rate Schedule G1 and Customer must remain on the G1 rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge 6.45¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate 16 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 17 SCHEDULE G1 LOCAL GOVERNMENT SERVICE (Effective 10/01/11) APPLICATION The Local Government Service (G1) rate is applicable to any local City, County, or School District having a maximum demand that equals or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $6.81/kW plus; (3) Energy Charge 3.15¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, plus; (2) Demand Charge 18 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual kW demand supplied during the fifteen (15) minute period of maximum use during the current month as determined by City's demand meter; or (2) not less than 50% of the highest monthly actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 19 SCHEDULE WK WEEKEND SERVICE (Effective 10/01/11) APPLICATION Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $20.86/bill Three-Phase $26.08/bill plus; (2) Demand Charge $6.72/kW (First 20 kW not billed) plus; (3) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Next 3,500 kWh 3.67¢/kWh Additional kWh 2.70¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING (1) Facility Charge plus; (2) Demand Charge 20 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter less 20 kW; or (2) zero (0). ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 21 SCHEDULE AF ATHLETIC FIELD (Effective 10/01/11) APPLICATION Applicable to all electric service metered at one point for use to light specified areas for athletic events. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $21.07/bill Three-Phase $31.60/bill plus; (2) Energy Charge per billing period Billing months of June through September: Peak (2:00 PM to 7:00 PM) 7.96¢/kWh Off Peak (All Other Hours) 3.98¢/kWh Billing months of October through May: All hours 3.98¢/kWh plus; (3) Demand Charge Billing months of June through September: Peak (2:00 PM - 7:00 PM) $4.94/kW Off Peak (All Other Hours) $1.17/kW Billing months of October through May: All hours $1.17/kW plus; (4) Energy Cost Adjustment Charge See Schedule ECA 22 MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase or three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 23 SCHEDULE LS STREET LIGHTING (Effective 10/01/11) APPLICATION Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge LSA 100 W Sodium Vapor $5.15/bill LSB 250 W Sodium Vapor $7.30/bill LSC 400 W Sodium Vapor $9.19/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor LSA 100 W Sodium Vapor 48 kWh LSB 250 W Sodium Vapor 105 kWh LSC 400 W Sodium Vapor 159 kWh TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120, 240, or 480 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 24 SCHEDULE LT TRAFFIC LIGHTING (Effective 10/01/11) APPLICATION Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHLY RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 25 SCHEDULE UFL UNMETERED SCHOOL ZONE/CROSSING FLASHERS (Effective 10/01/11) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered school zone/crossing flashers. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of school zone/crossing flashers will determine the average kWh usage. This average consumption will be billed for each school zone/crossing flasher once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 48 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 26 SCHEDULE ULT UNMETERED TRAFFIC LIGHTING (Effective 10/01/11) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered traffic signals. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of lighted intersections will determine the average kWh usage. This average consumption will be billed for each lighted intersection once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 904 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 27 SCHEDULE USC UNMETERED SECURITY CAMERA (Effective 10/01/11) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered security cameras. NET ANNUAL RATE (1) Facility Charge $15.80 plus; (2) Energy Charge 5.62¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on technical information of installed equipment. This calculated consumption will be billed for each camera once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = annual kWh per camera kWh Rate Annual Usage = 300 kWh per camera per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 28 SCHEDULE LO OTHER LIGHTING (Effective 10/01/11) APPLICATION Applicable to Texas Department of Transportation unmetered and metered safety lighting systems and continuous lighting systems as those terms are defined in Texas Administrative Code, Title 43, Part 1, Chapter 25, Subchapter A, Rule §25.11. DEFINITION The following definitions apply to this Schedule LO: Hours of Operation Per Billing Period = 333 hours Bulb Wattage is the rated wattage of the luminaire bulb NET MONTHLY RATE LOA (Unmetered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Bulb Wattage/1000) x (Hours of Operation Per Billing Period) ENERGY CHARGE LOA (Unmetered Lighting) Billing for the Energy Charge shall be based on estimated kWh consumption during the billing period. Energy Charge = (kWh Rate x Bulb Wattage/1000) x (Hours of Operation Per Billing Period) NET MONTHLY RATE LOB (Metered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA 29 ENERGY CHARGE LOB (Metered Lighting) Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 30 SCHEDULE DD SECURITY LIGHTING (Effective 10/01/11) APPLICATION Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge DSA 100 W Sodium Vapor $ 8.14/bill DSB 250 W Sodium Vapor $10.76/bill DSC 400 W Sodium Vapor $12.97/bill DHA 250 W Metal Halide $12.65/bill DHB 400 W Metal Halide $15.07/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DSA 100 W Sodium Vapor 48 kWh DSB 250 W Sodium Vapor 105 kWh DSC 400 W Sodium Vapor 159 kWh DHA 250 W Metal Halide 105 kWh DHB 400 W Metal Halide 159 kWh 31 TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled, metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) wood pole with the necessary lighting hardware and overhead conductor for each installed light, at a distance not to exceed eighty (80') feet from existing lines, at no charge to the Customer. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where the eighty (80’) feet distance limit is exceeded or service of the type desired by the Customer is otherwise not available at the point of service. TERM OF CONTRACT A two (2) year contract shall be agreed to and signed by each Customer desiring Security Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the Customer’s monthly municipal utilities bill. In the event that a Customer requests the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be canceled by either party upon thirty (30) days notice. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 32 SCHEDULE DDL DOWNTOWN DECORATIVE LIGHTING (Effective 10/01/11) APPLICATION Applicable to any Customer requesting service on the perimeter of the historic County Courthouse Square located in downtown Denton and served by the City’s existing electric distribution system for outdoor area lighting at said location. NET MONTHLY RATE (1) Facility Charge $4.04/bill plus; (2) Energy Cost Adjustment (Current ECA per Schedule ECA) (350 kWh per Customer) TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City’s standards and subject to its published rules and regulations. The service is provided between dusk and midnight. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. FACILITY CHARGE The Facility Charge shall be assessed on each bill rendered. 33 SCHEDULE DSL NON-STANDARD STREET LIGHTING (Effective 10/01/11) APPLICATION Applicable to street lighting owned and maintained by the Customer. Availability of this service is contingent on the existence of an executed Special Facilities Rider between the legally responsible party and the City under which the legally responsible party accepts all responsibilities, both legal and financial, related to operation and maintenance of the subject lights, including but not limited to payment of all applicable energy charges. NET MONTHLY RATE (1) Facility Charge $8.14/bill plus; (2) Energy Charge 5.62¢/kWh Energy Charge = (kWh Rate) x (Bulb Wattage Factor) plus; (3) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DLSA 100 W Sodium Vapor 48 kWh DLSB 250 W Sodium Vapor 105 kWh DLSC 400 W Sodium Vapor 159 kWh DLHA 250 W Metal Halide 105 kWh DLHB 400 W Metal Halide 159 kWh Other – For any lamp types installed by owner that are not included in the list above, a Bulb Wattage Factor will be determined for each unique type. TYPE OF SERVICE The City shall deliver single-phase, sixty (60) cycle service at 120 or 240 volts to the site for non- standard streetlight fixtures supplied by the customer, and installed by the City in accordance with Municipal Code requirements. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. 34 ADDITIONAL SERVICE CHARGES If the City is required to maintain the privately owned lights to ensure public safety, the owner of the lights may be subject to additional service charges. The additional service charges shall be the actual cost of performing any work required to perform the necessary maintenance including but not limited to: Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Any material needed to repair and/or maintain facilities will be billed at City of Denton Warehouse cost plus 25%. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 35 SCHEDULE T1 TEMPORARY SERVICE (Effective 10/01/11) APPLICATION Applicable when a Customer requests electric service on a short term or temporary basis where a customer has received a permit from the City Building Inspections Department. This rate is not applicable after the certificate of occupancy or building final inspection has been issued. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period 7.11¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service at sixty (60) cycles at a standard secondary voltage available at the site. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. 36 ADDITIONAL TEMPORARY SERVICE CHARGES Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Material that cannot be salvaged shall be billed at City of Denton Warehouse cost plus 25%, plus applicable sales tax. At the time a temporary service is removed or converted, any loss of the installed material due to negligence or willful action by the Customer will be billed separately to the Customer at replacement cost plus 25%, plus applicable sales tax. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 37 SCHEDULE EGR ECONOMIC GROWTH RIDER (Effective 10/01/11) PURPOSE The purpose of this rider is to facilitate local economic growth and expand the ad valorem tax base of the City of Denton. AVAILABILITY This rider is available to the Customers who: (1)Receive service from Rate Schedules GSL or TGS; and (2)Pay City of Denton ad valorem tax; and (3)Receive no electric service discounts other than those specifically defined in the GSL or TGS rate schedules. APPLICATION This rider is available to electric service supplied at any one location. It is for firm electric service applicable to new and existing Customers as described below, over a five (5) year period. This rider is available to the following classes of Customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 1,000 kVA, as estimated and mutually agreed upon by the DME General Manager and the customer. (2) Existing customers served under Rate Schedules GSL or TGS who increase their prior existing metered demand by 1,000kVA. This increase shall be verified by sub- metering (at the Customers expense) the additional load. If sub-metering is not possible, at the discretion of the General Manager, the increase may be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the General Manager and the Customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. In light of additional costs associated with the Economic Growth Rider and to mitigate potential risk to ratepayers, any participant in the Economic Growth Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. 38 NET MONTHLY RATE The Customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period Reduction to Billing Demand First Year 50% Second Year 40% Third Year 30% Fourth Year 20% Fifth Year 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 39 SCHEDULE GRP GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (Effective 10/01/11) PROGRAM SUMMARY The objective of the GreenSense Energy Efficiency Rebate Program (“Program”) is to reduce energy demand and consumption by promoting energy conservation, thereby reducing the utility bills of Denton Municipal Electric (DME) customers, reducing the peak load of the DME’s electric system, reducing emissions in the state, and promoting energy conservation. The Program offers incentives, in the form of rebates on the electric service bills of DME retail customers and cash incentives to builders. Cash incentives may be paid to residential retail customers for the installation of photovoltaic applications. In light of additional costs associated with the GreenSense Energy Efficiency Rebate Program and to mitigate potential risk to ratepayers, any participant in the GreenSense Energy Efficiency Rebate Program must be, at the time this program is applied for and continuing while such program is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. Program applicants will be able to qualify for multiple incentives simultaneously. A separate application may be necessary for each incentive. The Program will be in effect each fiscal year beginning on October 1, until the allotted funding is depleted or until cancellation of the program by DME. At the time the funds are depleted, no additional applications for participation will be accepted until the next fiscal year. Qualifying applicants must receive electric service from DME. The Program guidelines and payments are subject to change by DME without prior notice. DME may, at any time, discontinue the Program without prior notice. The current program guidelines may be found in the GreenSense Energy Efficiency Rebate Program Manual located at www.dmepower.com. 40 SCHEDULE ECA ENERGY COST ADJUSTMENT (Effective 10/01/11) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA’s energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: ECA Balancing Account = (Actual plus Projected ECA revenue) – (Projected Energy Cost) Where: Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) + (Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA = [(Projected Energy Cost) + (ECA Balancing Account)] / (Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Energy Cost Adjustment Charge = kWh ECA rate 41 EXTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position. 42 SCHEDULE RCA RENEWABLE COST ADJUSTMENT (Effective 10/01/1) The Renewable Cost Adjustment (RCA) rate shall be set by the Public Utilities Board. The RCA rate shall be reviewed on a quarterly basis and adjusted as defined below to recover the cost of renewable energy delivered to customers. Renewable energy cost includes the Energy Cost Adjustment Charge (see Schedule ECA) plus the cost of Renewable Energy Credits (REC) purchased. RENEWABLE COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The RCA Balancing Account shall be calculated using the following formula: RCA Balancing Account = (Actual plus Projected RCA revenue) – (Projected Renewable Energy Cost) Where: Projected Renewable Energy Cost = (Actual plus Projected cumulative ECA cost) + (Actual plus Projected REC cost) During the last month of each fiscal year quarter (December, March, June, and September), the DME General Manager or his/her designee shall calculate the RCA Balancing Account balance. In the event that the RCA Balancing Account balance calculated during the last month of each fiscal quarter is greater than zero dollars ($0) by $100,000 or more during the next quarter, the General Manager or his/her designee shall recommend to the Public Utilities Board an RCA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The Public Utilities Board shall consider that recommendation and may adjust the RCA rate for the quarter immediately following. RENEWABLE COST ADJUSTMENT CALCULATION RCA = ECA + [(Projected Renewable Energy Cost) / (Projected kWh sales)] Where: Projected Renewable Energy Cost = Actual + Projected REC cost RENEWABLE COST ADJUSTMENT CHARGE The Renewable Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Renewable Cost Adjustment Charge = kWh RCA rate 43 EXTRAORDINARY CIRCUMSTANCE RCA RATE ADJUSTMENT In the event that an Extraordinary Circumstance ECA Rate Adjustment is made (see Schedule ECA) the RCA shall be adjusted concurrently with the Extraordinary Circumstance ECA Rate Adjustment by substituting the new ECA rate in the Renewable Cost Adjustment Calculation formula above. 44 SCHEDULE DGR DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (Effective 10/01/11) APPLICATION This Rider is available to any retail customer receiving electric service under a DME electric rate schedule who owns and operates an on-site generating system powered by a renewable resource capable of producing power, and who interconnects with the DME electric system. Renewable energy technology is any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly or indirectly from the sun or wind. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources. This Rider applies to a Customer-owned generating system that primarily offsets part or all of the Customer’s electric service provided by DME. If the Customer-owned generating system larger than 50kW or if the system’s primary purpose is to sell energy to the grid and not offset the Customer’s consumption, special arrangements and contract may be necessary. In light of additional costs associated with the Distributed Generation From Renewable Sources Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Generation From Renewable Sources Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. CONDITIONS OF SERVICE All charges, character of service, and terms and conditions of the electric rate schedule under which the Customer receives service shall apply except as expressly altered by this Rider. The Customer shall comply with the current DME technical requirements for distributed generation interconnection. The Customer shall obtain approval from DME before the Customer energizes the customer’s on-site generating system or interconnects it with the DME electric system. The Customer shall submit to DME a completed interconnection application form and signed Standard Agreement for Interconnection and Parallel Operation of Distributed Generation Agreement. The minimum term of an Agreement under this Rider is one year, extended automatically unless terminated by either party with sixty days advance written notice The Customer is responsible for the costs of interconnecting with the DME electric system, including transformers, service lines, or other equipment determined necessary by DME for safe installation and operation of the Customer’s equipment with the City’s system. The Customer is responsible for any costs associated with required inspections and permits. 45 METERING Metering under this Rider shall be performed by a single meter capable of registering the flow of electricity in two directions (delivered and received) to determine the Customer’s net energy flow. RATE Beginning in a billing period after a Customer receives approval to interconnect the Customer’s on-site generating system from the City of Denton, all energy generated by the Customer’s system and delivered to the DME electric system will be considered renewable energy. The Customer shall be billed for all energy delivered by DME to the Customer under the approved residential rates. For any generation delivered by the Customer’s system to the DME system up to the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Generation Credit = [(kWh delivered from the Customer’s approved system) x (Customer’s base electric service rate)] + [(kWh delivered from the Customer’s approved system) x (RCA rate)] For all energy delivered by the Customer’s system to the DME system that exceeds the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Excess Generation Credit = (kWh delivered from the Customer’s system) x RCA rate (see Schedule RCA). Any Billing Period Credit shall be applied to the utility charges due from the Customer to the City of Denton for the billing period. INDEMNIFICATION The Customer operating the renewable distributed generation system indemnifies DME and holds DME harmless for all damages and injuries to DME, the Customer, or others arising out of Customer’s use, ownership or operation of Customer’s distributed generation facilities in parallel with DME’s system. Customer is solely responsible for providing adequate protection for operating in parallel with DME’s system in such a manner that faults or other disturbances on the DME system do not cause damage to the Customer’s distributed generation equipment. 46 SCHEDULE IWG INDEPENDENT WHOLESALE GENERATOR (Effective 10/1/11) APPLICATION The Independent Wholesale Generator (IWG) rate is applicable to non-renewable generating installations of ten (10) MW or less interconnected to and operating in parallel with DME’s distribution system, for the sole purpose of delivering the net output (gross output minus auxiliary load and step up transformer loses) of said generating installation to the Electric Reliability Council of Texas (ERCOT) transmission grid for sale in the ERCOT wholesale power market. DME will interconnect the IWG pursuant to the terms of the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. Other services or special requirements for interconnection of a specific generating facility not included in the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, requested by the IWG Customer, or required by DME may be provided pursuant to negotiation and agreement by both the IWG Customer and DME. The provision of said additional services or requirements shall be recorded in the form of an addendum to the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. TERMS AND CONDITIONS OF SERVICE At a minimum, the IWG Customer shall comply with the current DME technical requirements for independent wholesale generation interconnection specified in the DME standard Agreement for Interconnection and Parallel Operation of Distributed Generation. The IWG Customer may not begin construction of its facilities until an Agreement for Interconnection and Parallel Operation of Distributed Generation has been signed by both the IWG Customer and the City of Denton. The IWG Customer shall obtain approval from DME before the IWG Customer begins operation of its generating system or interconnects it with the DME electric system. The IWG Customer is responsible for any costs associated with required City of Denton and/or DME inspections and permits. PRE-INTERCONNECTION STUDIES DME may, at its sole discretion perform pre-interconnection studies DME or the City of Denton deems appropriate, which may include, but are not restricted to, a service study, coordination study, emissions impact study, and utility system impact study. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular IWG generation system to be interconnected, DME’s distribution system at the specified proposed location(s), and environmental characteristics of the Denton County area. Such studies will also determine whether the electric interconnection can be made consistent with safe and reliable operation of DME’s distribution system. The cost of such analysis will be the responsibility of the IWG Customer. A cost estimate will be provided and agreed to by the IWG Customer prior to DME or the City performing the studies. 47 SYSTEM MODIFICATIONS The IWG Customer will be required to install, operate, and maintain in good order and repair, and without cost to DME, all facilities required by DME for the safe operation of the IWG system in parallel with DME’s electric system. The IWG Customer’s IWG system shall be installed, operated, and maintained by the IWG Customer at all times in conformity with good electrical practice and shall comply with the National Electric Code, the National Electric Safety Code, any applicable local codes and any applicable DME service standards included in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation Any modifications or additions to DME’s electrical system caused by the addition of the Customer’s IWG system will be solely at the IWG Customer’s expense. However, the IWG Customer will not acquire any ownership in these facilities. The modifications and additions may include, but are not restricted to, the upgrading of transformer insulation levels and lightening arrester ratings, the replacement of circuit breakers due to increased fault current levels, additional protective relaying and any additional metering. Further, DME may require that a communications channel(s) be installed at the IWG Customer’s expense as part of the relay protection, remote control, remote metering, SCADA telemetry, and/or direct voice contact between DME and the IWG Customer. RATE The IWG Customer shall be subject to special contract arrangements and the rates charges to the Customer may consist of a minimum monthly Facility Charge plus a monthly distribution charge plus a monthly distribution line loss charge. These charges shall be calculated as follows: Monthly Facility Charge: The IWG Customer shall pay DME a monthly facility charge sufficient to compensate DME for its investment in special facilities dedicated exclusively to providing the IWG Customer service and/or that are necessary to ensure that the quality of service provided to other customers is not adversely affected pursuant to the requirements of the SYSTEM MODIFICATION provisions set forth above. The minimum monthly facility charge shall be $65.55. Distribution Delivery Charge: The IWG Customer shall pay DME a monthly distribution delivery charge equal to $2.06 times the IWG Customer’s delivery demand. The IWG Customer’s delivery demand shall be the greatest of the IWG Customer’s maximum 15 minute net capacity output as measured at the IWG Customer’s IWG site, the minimum billing kW shall be as established in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, or 1,500 kW. 48 Distribution Line Loss Charge: The IWG Customer shall pay DME a monthly distribution line loss charge equal to the applicable monthly Energy Cost Adjustment (ECA) charge (see schedule ECA) times monthly energy losses. Monthly energy losses shall be calculated as the metered monthly kilowatt-hour output of the IWG Customer’s IWG generating unit(s) as measured at the IWG Customer’s IWG site times five (5.0) percent. Generator Auxiliary Load Standby Charge: The IWG Customer shall pay the DME General Service Large rate for any electric service used by the IWG Customer to serve generator auxiliary load as a result of demand and energy requirements placed upon DME resulting from planned or forced outage of the IWG Customer’s IWG generation unit(s). Electric Service to Structures and Other Facilities Other than Generator Auxiliary Load: All charges, character of service, and terms and conditions of the applicable City of Denton electric rate schedule(s) under which the IWG Customer receives DME electric service for structures or other facilities not specifically supplying auxiliary service directly to its generating unit(s) shall apply except as expressly altered by this Rider. 49 SCHEDULE CGR COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (Effective 10/01/11) This Rider defines the manner by which commercial customers may purchase predetermined 1000 kWh blocks of energy or 100% of actual energy consumption from renewable resources by substituting the Renewable Cost Adjustment Charge (see Schedule RCA) in lieu of the Energy Cost Adjustment (see Schedule ECA) specified in their applicable rate Schedule. APPLICATION This Rider is applicable to any non-residential Customer receiving service under rate schedules GSS, GSM, GSL, G1, TGS, or WK at one point of delivery and measured through one meter. This Rider is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Commercial Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Commercial Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE A customer eligible for service under this Rider may elect to purchase renewable energy at the Renewable Cost Adjustment Charge, determined in accordance with Schedule RCA. Said customer may elect to purchase 1000 kWh blocks of energy at the RCA rate, with the remainder of the customer’s energy use charged at the ECA rate or to purchase all energy used at the RCA rate. All other charges contained in the customer’s applicable rate Schedule shall continue to apply, as specified in said Schedule. Said customer’s energy charge shall be calculated as follows. Either: Total Energy Charge = [(Y x 1000 kWh) x RCA] + {[(Total Energy Used) - (Y x 1000 kWh)] x ECA} Where: Customer has elected to purchase a portion of its energy consumption at the RCA and: Y= Number of 1000 kWh RCA blocks elected by said customer Or: 50 Total Energy Charge = Total Energy Used x RCA Where: Customer has elected to purchase its entire energy consumption at the RCA TERMS OF SERVICE To exercise the energy supply choice made available by this Rider, an eligible customer must enter into a separate written agreement with Denton Municipal Electric that specifies either a specific number of 1000 kWh energy blocks to be purchased at the Renewable Cost Adjustment Charge or specifies that 100% of said customer’s monthly energy consumption is to be purchased at the Renewable Cost Adjustment Charge. The minimum term for a Schedule CGR agreement shall be 12 months. This Rider replaces the Energy Cost Adjustment Charge for participating customers. 51 SCHEDULE SFR SPECIAL FACILITIES RIDER (Effective 10/01/11) (1) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices not normally and readily available at the location which the customer requests service, the total cost incurred by DME for all facilities installed, buried, relocated and/or removed shall be the responsibility of the Customer and subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to the DME providing service to the Customer. (2) Billing for services beyond the delivery of electricity, utilized by the Customer, may be subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to DME providing service to Customer. 52 SCHEDULE DFR DARK FIBER (Effective 10/01/11) APPLICATION Service is available to any customer to the extent there is any excess capacity respecting Denton Municipal Electric’s fiber optic cable facilities, within the area served by Denton Municipal Electric’s (“DME”) distribution system, for the purpose of point-to-point dark fiber optic cable connectivity intended for the transport of high-speed data. MONTHLY RATE (1) Fiber Mileage Charge $400 per fiber pair/mile, per month; and (2) Building Presence Charge $180 per location, per month Total Fiber Rate $580 per fiber pair/mile, per month, per location RATE GUIDELINES (1)The minimum quantity of fiber to be leased shall be one (1) fiber pair. All fiber pairs furnished to the customer shall consist of two (2) fibers. (2)The minimum Fiber Mileage Charge is for one (1) fiber pair/mile. (3)After the first mile, Fiber Mileage Charge will be charged in increments of the nearest one-tenth (0.1) mile. (4)All costs associated with ingress to a customer’s location from the DME right-of-way shall be billed directly to the customer, and are not included in the Fiber Mileage Charge and the Building Presence Charge and shall be paid to Denton Municipal Electric within fifteen (15) calendar days from the date of issuance of the bill. (5)The Fiber Mileage Charge calculation is based upon the actual fiber pair distance along the DME distribution system rights-of-way. The Fiber Mileage Charge is not based upon any other method of calculation. The Fiber Mileage Charge is not based upon any distance determination, such as the distance the crow flies, or from point-to- point. (6)The Fiber Mileage Charge distance shall be capped at two (2) times the direct point-to- point distance. DISCOUNTS Special discounts will be applied for fiber pairs to the same location, and for fiber pairs for long- term contracts in the amounts as shown in the table below. The discount applicable to a customer shall not be a cumulative total of all the discounts offered. The discount any customer is entitled to shall be the largest single discount applicable to that customer’s service. 53 Discount Type Discount Discount Type Discount % % Term of Lease Number of Fibers 5-7 Years 30% 1-2 Fibers /Mileage Charge 0% 8-10 Years 45% 3-6 Fibers/ Mileage 9.7% Charge 7-12 Fibers/Mileage Charge 19% 12 or more Fibers/Mileage 28.7% Charge TYPE OF SERVICE The City shall furnish, install, maintain, and deliver only point-to-point dark fiber connectivity for the purpose of transporting high-speed data with a maximum loss of no more than 9.0 dB. PAYMENT Bills are due when rendered and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF LEASE CONTRACT All dark fiber lease contracts shall be for a minimum term of five (5) years. 54 SECTION 2. That the Assistant City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedule GRP, as the installation of energy efficient is in the best interest of the City of Denton, Texas, as such will reduce energy demand and consumption, reduce the peak load of the DME’s electric system, reduce emissions in the state, and promote energy conservation, which are public purposes of the City. SECTION 3. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 4. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 5. That this ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric effective with the first billing issued on and after October 1, 2011; and a copy of said rates shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the _______ day of ______________________, 2011. _______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ 55 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2010-233; providing an amendment to the right-of-way inspection fee and the right-of-way overtime inspection fee; providing a repealer; providing for a severability clause; providing for an effective date. BACKGROUND The proposed engineering fees rate ordinance is designed to recover the cost of service for the services rendered. The proposed schedule of Engineering Fees includes an increase to the right- of-way inspection fee from $75 per hour to $100 per hour for FY 2011-2012. FISCAL SUMMARY The rates and charges included in the Engineering Fees rate ordinance provide the revenues necessary to cover the cost of service to customers. PRIOR ACTION/REVIEW Proposed FY 2011-2012 Utilities budgets and CIP’s were presented and approved by the Public Utilities Board (“PUB”) during May and June, 2011. The Engineering Fees rate ordinance was presented and discussed by the PUB on July 25, 2011, and approved for recommendation to the City Council on August 8, 2011. The draft rate ordinance was sent to the Council for review on August 10, 2011. It is scheduled for adoption on September 20, 2011. RECOMMENDATION PUB recommends approval of the proposed Engineering Fees rate ordinance by a vote of 5-0, with an effective date of October 1, 2011. EXHIBIT 1.Proposed FY 2011-2012 Engineering Fee rate ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2011 - ________ AN ORDINANCE AMENDING THE SCHEDULE OF ENGINEERING FEES CONTAINED IN ORDINANCE NO. 2010-233; PROVIDING AN AMENDMENT TO THE RIGHT-OF- WAY INSPECTION FEE AND THE RIGHT-OF-WAY OVERTIME INSPECTION FEE; PROVIDING A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas incurs administrative expenses in providing inspection services for public improvements which are constructed by developers, and should be properly borne as fees by developers; and WHEREAS, when contractors or utilities perform work within City of Denton right-of- way, the City incurs right-of-way inspection and administrative expenses, which should be properly borne as fees by the contractor or utility requesting services; and WHEREAS, when commercial establishments require loading zones, or parking lots, or commercial establishments file variances or appeals to the Traffic Safety Commission regarding the proper traffic flow and safety, the City of Denton thereby incurs inspection and administrative expenses, which should be borne as fees to the commercial establishment seeking the City action; and WHEREAS, the City Council finds that such fees as are recited herein bear a reasonable relationship to the actual administrative costs and expenses incurred by the City of Denton to conduct such inspections, and that the following ordinance should be enacted; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. That a public works inspection fee is hereby established in an amount equal to 3.5% of the cost to construct public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City’s authorization to proceed with construction of the public improvements. The cost to construct the public improvements is the cost set forth in the public improvements agreement by and between the City and the developer. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the “Overtime Fee”) shall be paid to the city based upon the following hourly rate: $105.00 per hour as of and after the effective date of this ordinance. A minimum Overtime Fee shall be deposited with the City based upon four hours, at least 24 hours before the overtime inspection is scheduled to start; except that the weekend overtime deposit may be received on or before 12:00 p.m. of the Friday immediately preceding the weekend overtime period. If there are more than four overtime inspection hours, developer will 1 be billed for such additional hours, which shall be paid no later than fifteen (15) days after the date of the billing, and prior to incurring additional overtime inspections. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. SECTION 3. A right-of-way inspection fee is hereby established in an amount equal to $100.00 per hour, with a minimum of one hour for each inspection conducted. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an overtime fee (the “Overtime Fee”) shall be paid to the city at a rate of $135.00 per hour. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking construction or repairs with the City right-of-way no later than fifteen (15) days after the date of the invoice. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. Failure to pay the fee in full may result in the City terminating the contractor’s or utility’s right to work within the City right-of-way. SECTION 4. A parking lot permit inspection fee is to be paid to the City of Denton, and is hereby established in an amount equal the following: Parking lot permit fees 1 – 50 spaces $540.00 51 – 100 spaces $720.00 101 – 250 spaces $900.00 251 – 500 spaces $1,080.00 This parking lot permit inspection fee must be paid to the City by the developer or contractor of such facility prior to the City’s authorization to proceed with construction of the parking lot facilities. SECTION 5. A fee for appeals or for variances to the City of Denton Traffic Safety Commission is to be paid by the Applicant to the City of Denton, and is as follows: Fees for appeals or variances to Traffic Safety Commission Fee per appeal or variance $300.00 SECTION 6: A loading zone permit fee is to be paid by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year 2 That any renewal of a loading zone permit shall require the payment by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year SECTION 7: All ordinances or parts of ordinances in force when the provisions of this ordinance becomes effective which are inconsistent or in conflict with the terms or provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 8: If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 9: The Schedule of Rates herein adopted shall be effective, charged, and applied to all engineering services occurring on and after October 1, 2011; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _________________, 2011. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _________________________________ 3 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to city utilities customers contained in Ordinance No. 2010-232; amending account and reconnection charges; amending meter charges; amending miscellaneous fees, charges and deposits; providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND The Miscellaneous Fees, Deposits, Billings and Procedures For Administrative Services includes several updates to Account Connection and Reconnection Charges, Meter Charges, Miscellaneous Fees, Charges and Deposits. The proposed miscellaneous rate ordinance is designed to recover the cost of service. FISCAL SUMMARY The rates and charges included in the miscellaneous rate ordinance provide the revenue necessary to cover the cost of service to customers. PRIOR ACTION/REVIEW Proposed FY 2011-2012 Utilities budgets and CIP’s were presented and approved by the PUB during May and June, 2011. The miscellaneous rate ordinance was presented and discussed by the PUB on July 25, 2011, and approved for recommendation to the City Council on August 8, 2011. The draft ordinance was provided to the Council for review on August 10, 2011. It is scheduled for adoption by the Council on September 20, 2011. RECOMMENDATION PUB recommends approval of the proposed miscellaneous rates ordinance by a vote of 5-0, with an effective date of October 1, 2011. EXHIBITS Proposed FY 2010-11 Miscellaneous Fees, Charges, and Deposits Ordinance 1. Respectfully submitted: Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2011-________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY UTILITIES CUSTOMERS CONTAINED IN ORDINANCE NO. 2010-232; AMENDING ACCOUNT AND RECONNECTION CHARGES; AMENDING METER CHARGES; AMENDING MISCELLANEOUS FEES, CHARGES AND DEPOSITS; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Denton customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Meter Connection Charge 3 Meter Reconnection Process Charge 3 Unauthorized Usage Penalty 4 New Customer Application Charge 4 B. METER CHARGES Meter Reading 5 Meter Testing 5 Meter Tampering and/or Damage Charge 5 Meter Inaccessibility Charge 6 C. MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge 7 Service Deposits 7 Waiver of Service Deposits 8 1 Late Payment Charge Due on Delinquent Balances 8 Interest Charge on Past Due Account Balance 9 Interest Earned on Contract Retainage 9 2 ACCOUNT CONNECTION AND RECONNECTION PROCESS CHARGES (Effective 10/01/11) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service on a first time basis where no permanent service previously existed and where a new account number is established or, when a customer requests service at an address which has existing or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE First Service Requested $23.00 First Service Requested, guaranteed $61.00 same day service First Service Requested, after $61.00 business hours METER RECONNECTION PROCESS CHARGE APPLICATION Applicable when a customer’s account is processed for disconnection due to nonpayment. CHARGE Delinquent Service Fee $ 46.00 (When service is disconnected at the electric meter socket or the water meter) Delinquent Service Fee $168.00 (When service is disconnected at the electric transformer or the water meter has been removed) Reconnect Charge, guaranteed same day service (In addition to delinquent service fees) $ 61.00 3 Reconnect Charge, guaranteed same day service (When service is disconnected at the transformer or the water meter has been removed) $231.00 When more than one trip, within twenty-four (24) hours, is required to restore a customer’s service, a Return Trip Charge, in addition to the Reconnection Charge, shall be applied for each additional trip. Return Trip Charge during business hours $23.00 Return Trip Charge after business hours $61.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails to request connection of services within 24 hours of occupancy in a new service location. CHARGE Unauthorized Usage Penalty $30.00 NEW CUSTOMER APPLICATION FEE APPLICATION Applicable when a customer requests new service or is added to an existing account and provides Social Security or Tax ID information to verify identity and credit history. CHARGE New ResidentialCustomer Application Charge - per person $ 3.00 New Commercial Customer Application Charge $ 16.00 4 METER CHARGES (Effective 10/01/11) METER READING APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $46.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test $62.00/KWH Electric Meter $93.00/KW/KWH Electric Meter $93.00 Water Meter ACCURACY STANDARDS A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $310.00 minimum per electric connection per system Per Event $200.00 minimum per water connection per system 5 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $46.00 6 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 10/01/11) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer’s or taxpayer’s check, or money order, or bank draft for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker’s bank and returned to the City of Denton unpaid. CHARGE Per Check $27.00 SERVICE DEPOSITS APPLICATION Applicable when a residential customer requests utility service in the City of Denton service area and does not have twelve (12) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of Denton as security for payment. CHARGE Residential Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Commercial Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and 7 April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer’s account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer’s account. WAIVER OF SERVICE DEPOSITS APPLICATION Applicable when an Applicant is a citizen of the City of Denton, Texas and who also is a “victim of family violence,” applies for utility service in the City of Denton, Texas. To be a qualified as a “victim of family violence” an Applicant must secure and provide a certification letter, provided by one of the certifying entities to the Utilities Customer Service Department. If a proper, dated and completed certification letter is presented by or on behalf of the Applicant to the Utilities Customer Service Department, and its issuance is verified by the Utilities Customer Service Department, then the requirement of a utility deposit shall be waived for that Applicant. This provision is applicable solely to “victims of family violence” as defined by Texas Family Code, §71.004, as amended. No other relief from the City’s utility rates, or deposits, or charges, or fees is hereby provided to “victims of family violence.” LATE PAYMENT CHARGE DUE ON DELINQUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $20.00 late payment charge 8 INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month’s billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month’s billing statement. CHARGE 1% / month on all past due charges and account balances unpaid at the time of the current month’s billing calculation.** **Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX. REV. CIV. STAT. ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of interest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. 9 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. This ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 2011; and a copy of said fees and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _______________________, 2011. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 10 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Utilities Administration ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2010-231 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton solid waste service; providing for the amendment to the residential refuse and recycling collection services rates and clarification thereof (Schedule SWR); amending the residential multi-family household furniture collection services rate (Schedule SWMFS); amendment to the multi-family chemical collection/recycling rate (Schedule MFR); amendment to the commercial solid waste collection services dumpster rates (Schedule SWC); amendment to the commercial recycling services rate to reflect an increase to the small business recycling cart rate (Schedule SWCR); amendment to the collection and transportation services permit and clarifications (Schedule SWP); amendment to the sanitary landfill services rates (Schedule SWL); providing for a repealer; providing for a severability clause; and providing an effective date. BACKGROUND The proposed rate ordinance has been developed to provide the revenues required to support the FY 2011-2012 Solid Waste operating budget and CIP. Shown below is a comparison of existing FY 2011 rates and proposed FY 2012 rates. FY 2011 FY 2012 Residential Refuse: Standard Cart $18.65 $19.25 Small Cart $16.45 $17.10 Large Cart $21.00 $21.95 Residential Curbside Recycling $ 5.05 $ 5.15 Multi-family Recycling $ 2.25 $ 2.30 COD Landfill Gate Rate $41.25 / ton $42.25 / ton. State of Texas Landfill Surcharge $ 1.25 / ton $ 1.25 / ton Gross Landfill Gate Rate $42.50 / ton $43.50 / ton Commercial dumpster refuse rates are proposed to increase approximately 3.9%. FISCAL INFORMATION The Solid Waste rates provide the revenues required to support the FY 2012 solid waste operating budget and FY 2012-2016 CIP. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The proposed FY 2011-2012 Solid Waste operating budget and FY 2012-2016 CIP were presented to the PUB during May and June 2011 and approved on June 27, 2011. This rate ordinance was reviewed by the PUB on July 25, 2011, and approved for recommendation to the City Council on August 8th, 2011. The draft rate ordinance was provided to the Council for review on August 10, 2011. This ordinance is schedule for adoption on September 20, 2011. RECOMMENDATION PUB recommends approval of the proposed Solid Waste ordinance by a vote of 5-0, with an effective date of October 1. 2011. EXHIBITS I. Proposed FY 2011-2012 Solid Waste Rate Ordinance Respectfully submitted, Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2011- _______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NO. 2010-231 AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; PROVIDING FOR THE AMENDMENT TO THE RESIDENTIAL REFUSE AND RECYCLING COLLECTION SERVICES RATES AND CLARIFICATION THEREOF (SCHEDULE SWR); AMENDING THE RESIDENTIAL MULTI-FAMILY HOUSEHOLD FURNITURE COLLECTION SERVICES RATE (SCHEDULE SWMFS); AMENDMENT TO THE MULTI- FAMILY CHEMICAL COLLECTION/RECYCLING RATE (SCHEDULE MFR); AMENDMENT TO THE COMMERCIAL SOLID WASTE COLLECTION SERVICES DUMPSTER RATES (SCHEDULE SWC); AMENDMENT TO THE COMMERCIAL RECYCLING SERVICES RATE TO REFLECT AN INCREASE TO THE SMALL BUSINESS RECYCLING CART RATE (SCHEDULE SWCR); AMENDMENT TO THE COLLECTION AND TRANSPORTATION SERVICES PERMIT AND CLARIFICATIONS (SCHEDULE SWP); AMENDMENT TO THE SANITARY LANDFILL SERVICES RATES (SCHEDULE SWL); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLA AND PROVIDING AN EFFECTIVE DATE. SECTION 1. The charges for Solid Waste collection services as authorized by Section 24- 42(b) of Article II, Section 24-66 of Article III and Section 24-4 of Article I of Chapter 24; and by Section 32-90 of Article IV of Chapter 32 of the Code of Ordinances of the City of Denton, Texas, are hereby established as follows: SOLID WASTE RATE SCHEDULES PAGE RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES ............. Rates and Fees .............................................................. 3 Services ......................................................................... 4 Miscellaneous ............................................................... 5 MULTI-FAMILY REFUSE AND RECYCLING SERVICES ..................... Rates and Fees .............................................................. 6 Services ......................................................................... 6 Miscellaneous ............................................................... 7 COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES ............................ 7 Rates and Fees Î Commercial Refuse ............................. Rates and Fees Î Commercial Recycling .......................... Commercial Service Fees ........................................... 11 Shared Container Fees Î Square District ........................ Miscellaneous ............................................................. 14 1 CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES.................................................................... 16 Rates and Fees ............................................................ 16 Miscellaneous ............................................................. 16 LANDFILL SERVICES .............................................. 17 Rates and Fees ............................................................ 17 Services ....................................................................... 18 Miscellaneous ............................................................. 19 COLLECTION AND TRANSPORTATION SERVICES PERMIT ..................................... 20 Fees ............................................................................. 21 Miscellaneous ............................................................. 24 2 SCHEDULE SWR AND SWRR RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/11) Residential accounts are defined as: Each living unit of a residential lot, each unit of a duplex or triplex, and any single unit or living space in which a person or single family resides. All refuse or recycling must be placed within a bag and within the appropriate cart with the lid fully closed, and placed at the curb by 7:00 a.m. on the scheduled collection day. Carts are only collected one time per week. Residential accounts will be bille Rates and Fees Residential Rates and Fees Monthly Service Rates 1 Cart2 Cart3 Cart (SWR) Refuse - Standard Cart $19.25N/AN/A Refuse - Small Cart$17.10N/AN/A Refuse - Large Cart$21.95$40.00$60.00 (SWRR) Recycling$5.15$5.15$8.15 Minimum Monthly Billing Rate$17.85 Excess Refuse per cart reload and empty$6.00 Yard Waste (per Cubic Yard, in excess of 6 cubic yards)$7.00 Large Household Item (per item, in excess of 4 items per year)$5 Appliance with PCB's or refrigerants (per item)$50.00 Electronics (per item)$20.00 Residential C&D (mobilization)$70.00 Residential C&D (per cubic yard)$10.00 Cart Redelivery Fee$25.00 3 Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. Minimum Billing/Base Rate Service A minimum monthly billing rate is applicable for an unoccupied residential unit and shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of six months per calendar year. Excess Refuse Solid Waste collection personnel will reload the refuse cart with additional bagged refuse materials adjacent to the refuse cart. Yard Waste There is no additional charge for the collection of up to 6 cubic yards (CYÓs) of yard waste per week (i.e. bagged grass clippings, bagged leaves, brush, and tree limbs which are cut in less than 4Ó lengths and stacked). If the volume of yard waste exceeds 6 CYÓs but does not exceed CYÓs, the total volume will be collected, and a fee per CY will be charged for each CY in excess of 6 CYÓs. If the total volume exceeds 11 CYÓs the resident shall contact Customer Service to request collection. Large Household Items Solid Waste collection personnel will collect up to four large household items per year, for no additional charge. Large household items are residential household type items that are consistent with household use, such as furniture and selected appliances. Appliances Appliances manufactured to contain PCBÓs or refrigerants will be charged for the collection and disposal of each appliance and/or the associated materials. Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged for the collection, processing, recycling and disposal of these devices. Residential C&D Residential C&D waste includes but is not limited to lumber, brick, fencing, and drywall, not exceeding 8Ó in length. If the customer has over (8) cubic yards of C&D waste for collection at 4 any one pick-up, the customer is required to have a City refuse container of adequate size to contain the waste, and maintain a collection service frequency of at least once per month. Household Hazardous Waste Residential household hazardous wastes are unwanted chemicals that should not be placed in your refuse cart (pesticides, herbicides, cleaning chemicals, paints, oils, etc.). These wastes should be kept in their original container and set on the curb, approximately four feet from the refuse and recycling cart. Redelivery Fee Residential customers will be charged a re-delivery fee to reset each cart pulled for nonpayment. Miscellaneous When initiating new service, a deposit may be charged. Residential customers may be provided commercial containers and service at the published commercial rates. Temporary containers may be placed on residential property for up to thirty 30) days, with no more than three 30-day periods per year. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Other residential services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special and administrative services provided. SCHEDULE MFR AND SCHEDULE SWMFS MULTI-FAMILY REFUSE AND RECYCLING SERVICES (Effective 10/01/11) A multi-family unit includes each separate living unit of a four-plex, apartment, condominium, or other multi-family living facility with four or more residenc Multi-family facilities are provided refuse collection services, and recycling collection services if requested. In addition to those services, multi-family residents receive Household Chemical Collections and Recycling Services and have the option to subscribe to either of the two Large Household Item Collection services offered. 5 Rates and Fees Household Chemical Collections Multi-family household chemicals are unwanted chemicals that should not be placed in your refuse container (pesticides, cleaning chemicals, paints, oils, etc.). Residents shall contact Customer Service for their collection, and the materials should be placed at an agreed upon location. Annual Container Service A furniture container will be placed at a designated location and serviced weekly on the regular collection day. This requires a twelve (12) month service subscription. On-Demand Container Service A furniture container will be placed at a designated location and Customer Service must be notified one day in advance for the container to be serviced. If the furniture container is contaminated with refuse, construction materials, or contains other non-furniture materials, the standard refuse service fees will apply. Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. 6 Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD or plasma displays will be charged for the collection, processing, recycling, and disposal of these devices. Appliances Appliances for multi-family residents are not collected through an appliance collection route, and may only be placed in the facility dumpster if they were not manufactured to contain PCBÓs or refrigerants. If they were manufactured to contain PCBÓs or refrigerants they should be transported by the resident to the landfill. Special Collection Special collection services may be provided to multi-family facilities upon request. Miscellaneous Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. SCHEDULE SWC AND SCHEDULE SWCR COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/11) Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of Denton. Only materials mutually agreed upon by the commercial recycling customer and the City are acceptable in the provided recycling container. The owner/manager of the commercial entity is the party responsible for notifying his/her personnel of proper recycling procedures. New commercial business development and redevelopment will be provided solid waste commercial refuse and recycling services, as outlined in the Denton Development Code and Site Plan Criteria Manual. Refuse and recyclables will be collected in city provided or city approved containers only. All businesses utilizing non-city owned containers shall comply with the requirements of the Collection and Transportation Rate Schedule (SWP) and shall be permitted per the requirements of the schedule. 7 Should any other fees or charges be established by any other authorized government entity, those fees will be added to the monthly rates stated within this ordinance in order that the City may fully recover the additional governmental fees. Commercial accounts will be billed monthly or semimonthly. Rates and Fees Î Commercial Refuse 8 9 On demand municipal solid waste (MSW) collections, excluding construction, deconstruction, and demolition materials, must be collected a minimum of once pe Texas Municipal Solid Waste handling requirements. Commercial Recycling The contamination rate must not exceed 10% of the hauled load to qualify as recyclable materials. On demand recyclables equal to or greater than 10% contamination must be hauled a minimum of once per week. Containers with loads exceeding 10% co MSW and will be hauled and billed by the City of Denton as MSW. The City of Denton has the authority to inspect the contents of any container located within DentonÓs city limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not Rates and Fees Î Commercial Recycling 10 Commercial Refuse and Recycling Cart Service In those areas where commercial cart collection is available, sm generating less than one cubic yard of refuse per week, may contract for once per week cart service. All waste must be contained in the cart, and the cart s 7:00 a.m. on the scheduled collection day. A maximum of four carts are available, two refuse and two recycling. The cart(s) will only be serviced one time per week. Service above this level will require the customer to subscribe to front-load container service. Commercial Service Fees 11 Delivery / Relocation / Inaccessible Fee A fee will be charged for the delivery of a container, the relocation of a container, or if the container is inaccessible at the time of service. Minimum Charge A monthly minimum charge will be charged to all non-cart commercial solid waste customers. Wait Time Fee Customers that request the driver wait so that they can provide an additional service to the customer will be charged an on-site waiting time fee charged in fifteen (15) minute increments. Same-Day Service Fee The Solid Waste Department Customer Service personnel must receive on-demand service requests prior to 11:00 a.m. on the day service is desired in order to provide same day collection service. Lock Installation Fee For the Solid Waste DepartmentÓs installation or removal of container locks. Deposit Fee For containers, a commercial solid waste service deposit is required. Payments to the City that are not received by the due date will result in the customerÓs d next billing cycle. The deposit increase will be based upon the customerÓs billing history. To continue receiving service, the customer is required to remit the previous service balance owed and the increased deposit charges. The General Manager, Solid Waste Services, or designee, may waive the deposit based upon the review of the customerÓs credit history and other criteria. No Parking Zone Fees for Containers in Right-of-Way No Parking Zone fees provide for an identifiable and painted area in the street which is designated as a vehicular No Parking Zone, which provides for road clearance, allowing the CityÓs trucks to always have accessibility to the customerÓs container. The No Parking Zone is designed to prevent the container from being blocked by another vehicle, and therefore eliminates additional service fees from being charged to the cus truck driver to return to the customerÓs address and empty the container once a vehicle blocking a container has moved. Customers may secure a dedicated No Parking Zone for front load and side load containers by completing an application with the City Traffic Engineer. 12 Container Cleaning Fees Commercial container cleaning services are available for front-load or side-load containers. The service is a one-year service subscription that is elected by the customer. The one-year service agreement is on a annual basis, not a fiscal year basis. Only empty containers will be transported and cleaned, and are projected to be off the customerÓs site for no longer than four hours. Shared commercial container customers that desire to have their containers cleaned shall determine the monthly amount to be billed to each customer, which when totaled shall equal the monthly rates for scheduled services or the on-demand service rate. Shared Commercial Containers Î Square District Shared container collection services which include both refuse and recyclables collections at each business site within the Square District of the City of DentonÓs Downtown Implementation Plan area will be provided for the charges listed below. Shared Container Fees Î Square District Property owners within the Square District may have individual business containers on their property if they choose not to use shared container service. Shared Commercial Containers (Outside of Square District) Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Division staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. Shared accounts are subject to other applicable service fees. 13 Miscellaneous All new commercial business development and redevelopment will b commercial refuse and recycling services, as outlined in the Denton Development Code and the Site Plan Criteria Manual. Refuse will be collected in City approved or City provided containers only. All non-City owned containers shall have a container permit affixed to the outside of each container in a location that is clearly visible when viewed by Solid Waste Department employees, from the front of the collection site. Commercial refuse collection services are provided through a volume-based rate system. The City reserves the right to reject recycling loads containing any materials other than the contracted material. If a load is rejected as recyclables by the City, it will be handled as municipal solid waste (MSW) and incur both the rejected recycling charges as well as associated commercial solid waste disposal rates. Other services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special services and administrative services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Special Waste DentonÓs acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the special waste requested from the customer for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the General Manager, Solid Waste, for the collection and disposal of special waste, will be established based on the type of special waste, and the requirements for collection and disposal of the waste. Service Requirements Equipment Uses - All equipment furnished by the City, shall at all times be considered the property of the City. Customer shall keep the equipment free and clear of all levies, liens and encumbrances. Customer shall not modify the equipment or use it set forth herein. The City shall repair, as necessary, the equipment(s) furnished. The Customer, however, agrees to be solely responsible for any damages to or loss of equipment resulting from any negligent acts or misuse by the Customer or Customer's agents or employees, or invitees. The City may temporarily replace the size and/or the type of equipment contracted for with one or more pieces of equipment(s) of equivalent capacity for the purposes of repairing the equipment. Customer agrees that the equipment is in the Customer's care, custody, and control at all times. 14 Equipment Location - Customer shall provide an accessible location for the Equipment that is safe and provides adequate and legal clearance. This means that for a radius of at least five (5) feet around the Equipment there will be no objects or obstructions other than enclosures that meet City-required clearance standards. No container shall be set closer than two (2) feet to any structure (exception: a bollard in an enclosure). Additionally, the path that the CityÓs Service truck must take on CustomerÓs premises, must provide a minimum clearance on each side of the CityÓs truck of at least two (2) feet. Overhead clearance of twenty-five (25) feet is required fo roll-off containers, and twenty (20) feet for front and side-load containers. Failure to maintain or provide these minimum clearances will result in the CityÓs refusal to pay any and all damage claims and/or to service the container. Customer will be solely responsible for providing access to the Equipment at all times, and agrees that Customer shall not be relieved of payment of any charges for Services contracted for, but not provided by the City, because of CustomerÓs failure to maintain continuous prescribed access to the Equipment. Outside of normal wear and tear, the maintenance required to place the Container at another location will be charged to the Customer. Weight Limits - Loaded side-load containers shall not exceed a total weight of one ton. Loaded front-load containers shall not exceed a total weight of two tons. Any container evaluated by the CityÓs collection manager to contain excess weight shall be emptied by the customer to the level determined by the collection manager prior to being serviced. Tickets and/or fines for overweight roll-off loads, and the CityÓs administrative costs, are the responsibility of the customer, and shall be paid by the customer. Indemnification and Hold Harmless - Customer agrees that the City will not be liable to Customer. Customer shall defend, indemnify and hold the City harmless from any and all claims made by CustomerÓs lessor or CustomerÓs lessee at the Service location, and any and all claims made by any other person having an interest in the property situated at the Service location, for any loss, damage or deterioration of the pavement, surface or subsurface materials or facilities at the Service location by reason of use thereof by the CityÓs trucks that are used to Service the Equipment. Customer agrees to release, indemnify, defend and hold harmless the City of Denton, Texas from and against any and all claims for damages to enclosures or screening devices, from solid waste Equipment which do not have an access opening of at least twelve (12) feet inside diameter (ID) for front-load Equipment; and fifteen (15) feet (ID) for roll-off Equipment. Customer further agrees to release, indemnify, defend and hold harmless the City of Denton, Texas, from and against any and all claims of damages related to the furnishing of commercial solid waste service performed by the City. 15 SCHEDULE SWC&D CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES (Effective 10/01/11) For construction, deconstruction, demolition, and renovation sites where the customer requests the City of Denton provide roll-off collection services for the recycling and reuse of the salvaged materials. Rates and Fees Rates are established for roll-off collection, transportation, and processing services of the listed materials and any other mutually agreed upon materials for which recyclable and reuse markets exist. Uncontaminated C&D materials will be accepted on a per ton or a cubic yardage basis. Rates charged will be based on the quantity and quality of materials to be delivered. Miscellaneous The City reserves the right to reject C&D loads containing any materials other than the agreed upon material. If a load is rejected, it will be handled as municipal solid waste (MSW) and incur commercial solid waste disposal rates. Other commercial services may be provided at fees established by the Solid Waste Division, and approved by the General Manager, Solid Waste Services. The fees established will recoup the costs and administration of the special services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stat that the City shall recover those additional costs from the customer. 16 SCHEDULE SWL LANDFILL SERVICES (Effective 10/1/11) Rates and Fees 17 Services Customers with greater than 3,000 monthly tons may receive different rate structures for varied waste categories or guaranteed delivery volumes. Unsecured Loads In compliance with State regulations, solid waste loads that are not adequately secured to prevent the material from spilling will be charged an Unsecured Load Fee Appliances Appliances manufactured to contain PCBÓs or refrigerants for which the customer provides no certified removal documentation of the PCBÓs or refrigerants will be charged for the disposal of each appliance and/or the associated materials. 18 Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged per device for disposal of these devices. Sand, Select Soil, Rock and Crushed Concrete Sales The Solid Waste Department may sell excess sand, select soil, and rock to the public. Note: Customers wishing to purchase large volumes of soil, greater than 50 CYÓs, and load their own vehicles, will be required to provide proof of insurance meeting the cityÓs minimum liability insurance coverage. Large volume sales and the actual rates charged will require pre-approval by the General Manager, Solid Waste. The soils must be excess to the needs of the Solid Waste Department. Pricing for special soils will be established by the General Manager, Solid Waste at a rate to fully recover costs. Special Waste and Other Waste Streams The acceptance by the landfill of and the disposal of special waste or other waste is conditional. Acceptance of special waste or other waste is subject to Federal and State laws and regulations. The City of Denton has the right to refuse to accept or dispose of special waste or other waste at its discretion. Charges for the disposal of special waste or oth on the type, characteristics, and amounts of waste, as well as the requirements for disposal of the waste. Such charges shall be established by the General Manager, Solid Waste, or designee. Miscellaneous The current State of Texas landfill surcharge of (30 TAC 330.602) $1.25 per ton is a pass- through charge collected on behalf of the State of Texas. Any additional assessment or fees established by a governmental entity will be added to the disposal rates and assessed on all waste delivered to the landfill. Other landfill services that are not otherwise listed under this Schedule SWL may be provided by the City at fees established by the General Manager, Solid Waste. Such fees shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the non-listed landfill services. Used Container Sales The Solid Waste Department will sell used metal containers and used surplus carts from time to time, as they become available for sale. 19 SCHEDULE SWP COLLECTION AND TRANSPORTATION SERVICES PERMIT (Effective 10/01/11) Any person, entity, or business engaged in the collection and transport of waste, recyclables, or other materials as classified within this rate schedule, and operating within the City of Denton must possess a current permit issued from the City prior to providing collection and transportation services. Any private container located within the City of Denton for use in waste and recyclables collection services is required to be permitted. Permits for collection and transportation services are required for, but are not limited to, the following wastes and recyclables classifications: Municipal Solid Waste Special Waste Medical Waste Hazardous Waste Restaurant Oil and Grease Grease & Grit Trap Waste Commercial and Industrial Recyclable Materials Î containerized and baled Residential Recyclable Materials Construction and Demolition (C&D) materials, recyclables, reuseables, and discarded C&D materials Waste and recyclable collection service providers operating in newly annexed areas, or contract service providers for the city Refuse or recyclables that the City does not collect and transpo The person shall apply for a permit from the city, and shall pay the required application fees at the time of permit application. All permits are non-transferable and are granted as non-exclusive service permits. Granting permits will be at the discretion of the City to meet the needs of the community. The permit applicant must pay the required fees, and meet all permit requirements prior to the issuance of a permit. Applicants with a Texas Commission of Environmental Quality (TCEQ) poor compliance history may not be permitted. All non-City of Denton container owners (roll-off containers, self contained compactors) are required to annually pay the per cubic yard container fee to the City of Denton for each container located within DentonÓs city limits. Applicants will qualify to be permitted as ÒSmall OperatorsÓ if locations within the City of Denton, and operate with an organizational fleet of two vehicles or less, including trailers, of which each vehicle does not have a Gross Vehicle Weight Rating (GVWR) of more than 14,000 pounds. Granting of Permit As a condition of granting a permit, the person or entity receiving such permit (permittee) agrees 20 to execute and comply with all requirements of the service agreement, carry specific types and amounts of insurance, submit reports, and timely pay the necessary fees. Following the granting of a permit, permit stickers shall be issued by the City and shall be placed by the permittee on vehicles operating within the city limits of Denton and upon all containers placed within the City limits of Denton. Collection and transportation vehicles operating in Denton, and containers set in Denton are required to display a current and valid calendar year permit decal at all times. If decals are lost by the permittee, and are not visible on their vehicles or containers, then the vehicles and/or containers must be re-permitted by the permittee, and all appropriate fees paid, prior to the vehicles or containers being placed in service within DentonÓs city limits. The City of Denton is not responsible for lost decals. stst Permits are issued annually, beginning December 1, and are effective from January 1 or the st date of issuance, whichever is later, through December 31 of the same calendar year. The permit application process should be initiated and fees should be paid as early as possible during the last quarter of each calendar year for the upcoming calendar year so that adequate time is st available for review and processing of the application. Submittal of applications by December 1 st will eliminate the possibility of permits being issued after Jan. City staff, after reviewing the permit application and agreement, and after conducting any necessary research, may issue the permit, issue the permit with conditions, or deny the issuance of the permit. The City will establish the number of permits to be issued in each materials category. Exclusions Individuals living within the City limits of Denton, and hauling personal materials, wastes, or recyclables from their primary living residence are exempt from this requirement. Any person, who transports applicable materials three or fewer times per year, shall register with the City on the forms provided for that purpose. No annual service fees are required, but registration and permitting through the City is required. Fees 21 22 Service providers desiring to provide services in more than one service category are required to complete permit documentation and pay the applicable fees for each service category they desire to provide within DentonÓs City limits. All fees paid are nonrefundable. Application, service, and container fees are payable at the time of application submittal. Right- of-way usage fees are due and payable prior to setting a container in the right-of-way. Service and container fees are non-transferable between vehicles and containers, and are unit specific. Service fees based on a percentage of gross revenues from the collection, disposal, treatment, processing and transportation services provided within Denton are due quarterly and require payment to the City within twenty (20) calendar days following the end of each calendar quarter. Container fees apply to each container placed by the permitee within the City limits of Denton, and non-City owned containers serviced by the City, but do not apply to City of Denton owned containers. Containers are defined as any refuse containment equipment, which can be lifted and emptied using a special vehicle designed for that use, i.e. which are not emptied manually. Container fees are established for each cubic yard of container capacity, per container, as listed within the Fees section. All containers require a container permit fee regardless if the container is or is not placed on the ground. Permitting and fees are applicable and due for all businesses ha from businesses located within DentonÓs City limits. The quarterly calculation of a percentage of revenue, and of materials sales, and of services provided requires that the calculation be provided, with complete financial detail, to the City along with the service fee payment to the City. This written financial disclosure shall provide a detailed explanation of how all calculated service fees were determined, and shall be provided to the City either quarterly or monthly, at each required service fee payment period. 23 If the full payment is not received by the due date (20th day of the month following the end of the reporting quarter) a penalty of 10% of the amount due will be charged, with an additional 1% charge due, for late payments beyond thirty (30) days, for each thirty (30) day period the balance due is not received by the City of Denton. Permittees currently permitted, and choosing not to reapply for st collection and transportation services permit by December 31 , for the upcoming calendar year st beginning January 1 will be assessed an additional $500 fee upon permitting or may not be st granted a permit by the City of Denton. If all permit fees are not paid prior to December 31, all unpermitted containers will be removed from their service provider locations beginning January st 1 by the City of Denton. Collection of these containers by the service provider requires that the time and materials charges incurred by City staff to relocate these containers must be reimbursed to the City by the service provider, prior to the CityÓs release of these containers. Quarter Payment Received by the City t h January - March April 20 t h April - June July 20 t h July - September October 20 t h October - December January 20 Miscellaneous Violations / ÒNo OperationsÓ Declaration A business which has not been permitted by the City to operate within the City limits of Denton; or has been suspended by the City from operating within the City limits of Denton, Texas shall be charged a sum of up to $500.00 per day by the City, for each day of violation of this ordinance, if the provider violates the ÒNo OperationsÓ requirement prior to receipt of a City of Denton permit, or during any suspension of a permit period. Each day of illegal operations during a ÒNo OperationsÓ period is considered a separate violation and the service provider is subject to being charged a sum of up to $500.00 for each day of violation. Following the receipt of a ÒNo OperationsÓ declaration and prior to a service provider being reinstated to legally operate within the City limits of Denton, the service provider must meet with the City staff to update their application and agreement and make payment of all monies owed to the City. If a service provider operates a vehicle within DentonÓs City limits which has not been permitted, or uses a container which has not been permitted, or operates an expired permit, or performs some other permit violation, or does not make payment of the appropriate fees in a timely manner, the city will issue a ÒNo OperationsÓ declaration to the service provider, and assess all applicable permit violation fees. Once a service provider has been issued a ÓNo OperationsÓ declaration from the City, all services to be provided within DentonÓs City limits are required to cease. Non-permitted containers may be collected by the City and stored until collection, storage, and permitting fees associated with each container are paid to the City of Denton. Following a meeting with the City staff, and the payment of all monies owed the City, the status of the permit will be determined. 24 Revocation of Services & Non-Renewal of Permits If the City finds any requirement of the permit to have not been met, or violated, or observes service providers operating within DentonÓs City limits without current permits, the City may institute a ÒNo OperationsÓ declaration, and additionally revoke or not renew the service providers permit, thereby requiring the service provider to cease all operations within the City limits of Denton. Reclassification of Recyclables Recyclables containing ten (10%) percent or more contamination, as determined by the City, will be considered refuse, and its collection may not be provided by under this ordinance. This material shall be reclassified as refuse and will be collected by the City of Denton. The General Manager, Solid Waste Services or his designee, will make the final determination on whether stored recyclables contain excessive contamination, which at the CityÓs determination, may cause the reclassification of these materials to municipal solid waste (MSW), thereby negating the ability of a service provider to tra DentonÓs City limits under their operating permit pursuant to this ordinance. The City of Denton has the authority to inspect the contents of any container located within DentonÓs City limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not Terms and Renewal All collection and transportation permits shall be valid for one calendar year from the date of issuance, and for not more than one calendar year from the date of issuance. SECTION 2. The General Manager of Solid Waste of the City of Denton is hereby authorized to deny the use of the City of Denton landfill to any customer w regarding the origin of, or the composition of the solid waste delivered for disposal to the landfill; or for safety violations committed by a customer within the landfill; or for non- compliance with verbal and written instructions provided to the customer by Solid Waste Department personnel at the landfill; or for nonpayment of delinquent funds owed by the customer to the City of Denton, Texas; or for any violation of t within the landfill; or for any non-compliance by the customer with the Texas Commission on Environmental Quality regulations or policies; or for any non-compliance by the customer with the City of DentonÓs Code of Ordinances or rules; or for any violation of the written landfill rules by the customer as posted by the Solid Waste Department at the entrances to the landfill, from time to time. SECTION 3. It is in the public interest that the provisions of Sections 26-3, 26-4, 26-5, 26- 7, 26-8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. 25 SECTION 4. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6.` This ordinance shall become effective, charged, and applied to all solid waste services rendered by the City of Denton on and after October 1, 2011; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED and APPROVED this ________ day of ____________, 2011. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________ ______ 26 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, Utilities, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of wastewater rates contained in Ordinance No. 2010-230; providing for an amendment in the rates for residential wastewater service (Schedule SR); amending the mobile home park wastewater service (Schedule SMH); amending the commercial and industrial wastewater service (Schedule SC); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub- meters) (Schedule SCD); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub-meters) (Schedule SCS); amending the septage & chemical toilet disposal at the pecan creek water reclamation plant septage transfer station (Schedule SCH); amending the equipment services facilities and restaurant & food service establishments wastewater service (Schedule SEE); amending the metered wastewater inside and outside corporate limits (Schedule SM); amending the sale of treated wastewater effluent (Schedule SGE); amending the wholesale wastewater treatment service for a governmental agency, division or subdivision (Schedule SSC); amending the wastewater tap fees (Schedule ST); amending the on-site sewage facility permit fees (Schedule OSSF); providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND During the budget presentations, the PUB reviewed the Wastewater Utility budget and the proposed rate change that was necessary to support the proposed FY 2011-2012 budget and FY 2011-2016 CIP. The proposed rate increase is designed to increase rate revenues by approximately 11%, recover the cost of service from wastewater tap fee revenue, and provide a positive or break-even net income. The increase also includes funding to support the aging wastewater infrastructure and reserve requirement financial plan objectives. The wholesale wastewater treatment rate is proposed to increase based on a cost of service analysis. Increases to the sampling and analysis charges are also proposed to recover the cost of service from pretreatment program customers. FISCAL SUMMARY The proposed rate increase will provide the revenues necessary to cover the cost of service to customers and support financial plan objectives. The average residential wastewater customer using 6,500 gallons would incur a $2.86 increase in the monthly charge. AIS – City Council Agenda September 20, 2011 Page 2 of 2 PRIOR ACTION/REVIEW Proposed FY 2011-2012 Utilities budgets and CIP’s were presented and approved by the Public Utilities Board (“PUB”) during May and June, 2011. The wastewater rate ordinance was presented and discussed by the PUB on July 25, 2011 and approved for recommendation to the City Council on August 8, 2011. The draft ordinance was sent to the Council for review on August 10, 2011. It is scheduled for adoption on September 20, 2011. RECOMMENDATION PUB recommends approval of the proposed Wastewater rate ordinance by a vote of 5-0, with an effective date of October 1, 2011. EXHIBITS 1.Proposed FY 2011-2012 Wastewater Rate Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2011-_________ AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 2010-230; PROVIDING FOR AN AMENDMENT IN THE RATES FOR RESIDENTIAL WASTEWATER SERVICE (SCHEDULE SR); AMENDING THE MOBILE HOME PARK WASTEWATER SERVICE (SCHEDULE SMH); AMENDING THE COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (SCHEDULE SC); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB- METERS) (SCHEDULE SCD); AMENDING THE COMMERCIAL /INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS) (SCHEDULE SCS); AMENDING THE SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (SCHEDULE SCH); AMENDING THE EQUIPMENT SERVICES FACILITIES AND RESTAURANT & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (SCHEDULE SEE); AMENDING THE METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (SCHEDULE SM); AMENDING THE SALE OF TREATED WASTEWATER EFFLUENT (SCHEDULE SGE); AMENDING THE WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION OR SUBDIVISION (SCHEDULE SSC); AMENDING THE WASTEWATER TAP FEES (SCHEDULE ST); AMENDING THE ON-SITE SEWAGE FACILITY PERMIT FEES (SCHEDULE OSSF); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WASTEWATER RATE SCHEDULES SR Residential Wastewater Service 3 SMH Mobile Home Park Wastewater Service 6 SC Commercial and Industrial Wastewater Service 9 SCD Commercial/Industrial Wastewater Service Which Measures With 13 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing SCS Commercial/Industrial Wastewater Service Which Measures With 15 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SCH Septage & Chemical Toilet Disposal at the Pecan Creek Water 17 Reclamation Plant Septage Transfer Station 1 SEE Equipment Services Facilities and Restaurants & Food 18 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 21 SGE Sale of Treated Wastewater Effluent 23 SSC Wholesale Wastewater Treatment Service for a 25 Governmental Agency, Division or Subdivision CWM DYNO Dirt Products 27 GBL Grass, Brush, and Leaves29 ST Wastewater Tap Fees 30 STE Treated Effluent Wastewater Tap Fees 31 OSSF On-Site Sewage Facility Permit Fees 32 SD Storm Drainage Fees 33 Special Facilities Rider 35 Special Conditions Rider 35 2 SCHEDULE SR RESIDENTIAL WASTEWATER SERVICE (Effective 10/01/11) APPLICATION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton, Texas water service. Not applicable for sub-billing or other utility billing by service user in any event. (SR) MONTHLY RATES - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $8.30/bill (2) Volume Charge $3.20/1,000 gallons effluent (SRO) MONTHLY RATES – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $9.55/bill (2) Volume Charge $3.70/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of 6,500 gallons. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 3 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6,500 Gallons x 98% Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SRNI/SRNO) MONTHLY RATES - WITHOUT CITY OF DENTON WATER SERVICE SRNISRNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge$8.30/bill $9.55/bill (2) Volume Charge $3.20/1,000 gals $3.70/1,000 gals The customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater. VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons 1,000 Wastewater volumes will be capped at a maximum of 18,000 gallons/bill. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 4 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 5 SCHEDULE SMH MOBILE HOME PARK WASTEWATER SERVICE (Effective 10/01/11) APPLICATION Applicable for mobile home parks that are master water metered to provide residential wastewater service. Wastewater service is billed based on the Customer’s winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. (SMH) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.60/bill (2) Volume Charge $3.20/1,000 gallons effluent (SMHO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $24.00/bill (2) Volume Charge $3.70/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater Volume Charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge 6 VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Established Billable Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SMNI/SMNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SMNISMNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $21.60/bill $24.00/bill (2) Volume Charge $3.20/1,000 gals $3.70/1,000 gals The Customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater per mobile home VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 7 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 8 SCHEDULE SC COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (Effective 10/01/11) REGULAR COMMERCIAL APPLICATION Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. (SC) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.60/bill (2) Volume Charge $4.15/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. Plus PRETREATMENT/PROGRAM CHARGES (As Applicable) (SCA) (A) Categorical Customer $400.00/bill (SCB) (B) Non-categorical Customer $ 50.00/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (A) Sampling charge (each) $60.00 (B) Analysis charge (per test) $ Actual cost per test SCO MONTHLY RATE () – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $24.00/bill (2) Volume Charge $ 4.75/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. MINIMUM BILLING Facility Charge 9 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS (SCNI/SCNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SCNISCNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $21.60/bill $24.00/bill (2) Volume Charge $4.15/1,000 gals $ 4.75/1,000 gals The minimum apartment Volume Charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. MINIMUM BILLING (1) Facility Charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility Charge plus other commercial user estimated monthly wastewater volume. 10 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume Rate per 1,000 gallons 1,000 Plus PRETREATMENT/PROGRAM CHARGES (As applicable) (1) Categorical Customer $400/bill (2) Non-categorical Customer $50/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 11 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 12 SCHEDULE SCD COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER FOR WASTEWATER BILLING (Effective 10/01/11) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD sub-metered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $ 46.15 3" Meter $ 96.60 4" Meter $178.45 6" Meter $222.90 8" Meter $259.30 10" Meter $311.75 (2) Volume Charge $4.15/1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be 13 provided subject to the Special Facilities Rider. COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vu x.00834([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume .98 Rate per 1,000 gallons 1,000 14 SCHEDULE SCS COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER EXCLUDED FROM WASTEWATER BILLING (Effective 10/01/11) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer’s processes, not returned to the wastewater system, and are therefore excluded from the customer’s wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $ 46.15 3" Meter $ 96.60 4" Meter $178.45 6" Meter $222.90 8" Meter $259.30 10" Meter $311.75 (2)Volume Charge – None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume sub metered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 15 WASTEWATER SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE EXCLUSION The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, in other words, removed, from the master meter water volume prior to the wastewater billing volume calculation. 16 SCHEDULE SCH SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (Effective 10/01/11) APPLICATION Applicable to all users of the Pecan Creek Water Reclamation Plant Septage Transfer Station. The user must sign the “Agreement for Disposal of Liquid Waste” and comply with the following requirements: 1.Section 26-191 of the City of Denton Code 2.Provide to the City: signed “Application for Permit”, “Agreement for Disposal of Liquid Waste” documents, and provide copy of current TCEQ Registration Certificate, current Insurance Certificate for each vehicle, and current Manager of Operations Driver’s License. 3.Comply with the “Liquid Waste Hauler – Vehicle Inspection Audit” requirements RATE (1) Facility Charge $5.00/bill (2) Volume Charge $32.20/1,000 gallons (3) Permit Fee each vehicle $300.00/per fiscal year MINIMUM BILLING Facility Charge PAYMENT Permit fee is due in full before first disposal at Pecan Creek Water Reclamation Plant Septage Transfer Station. Fee is prorated at $25 per month for current month and each of the remaining months in fiscal year. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. VOLUME CHARGE Billing for the septage volume contained in the septage hauling tank, shall be based on the full tank volume only. 17 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 10/01/11) APPLICATION Applicable to facilities which perform washing, cleaning or servicing of automobiles, trucks, buses or similar equipment and are categorized by North American Industry Classification System (NAICS) numbers: (811111, 811112, 811113, 811118, 811122, 811121, 811192, 811198, 447110, 447190) and /or similar code classifications. Applicable to all restaurants and food service establishments that prepare and serve food directly to customers and are categorized by NAICS numbers: (722110, 722211, 722212, 722213, 722410, 722310, 722320) and/or similar code classifications. (SEE) MONTHLY RATE (1) Facility Charge $21.60/bill (2) Volume Charge $5.70/1,000 gallons effluent Billing based on eighty (85%) percent of monthly water consumption. Plus PRETREATMENT / PROGRAM CHARGES (As Applicable) (SEA) (A) Categorical $400/bill (SEB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING/ANALYSIS CHARGES (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test “SEE” RATE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the sanitary sewer. The exemption for the SEE class shall be determined by the City of 18 Denton Environmental Health Services Food Inspection Division. (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/l of BOD and 600 TSS as determined by the monitoring performed in Section 2(b). MINIMUM BILLING Facility Charge WASTEWATER SURCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-500] B + [Su-600] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 500 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 600 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 19 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 20 SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (Effective 10/01/11) APPLICATION Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. SMISMO MONTHLY RATE Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $266.75/bill $306.80/bill (2) Volume Charge $ 4.15/1,000 gals $ 4.75/1,000 gals Plus (3) Pretreatment/Program Charge (As Applicable) (SMA) (A) Categorical $400/bill (SMB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test WASTEWATER SURCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 21 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. .00834 is the conversion B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. MINIMUM BILLING Facility Charge, plus the appropriate Pretreatment/Program Charge, if applicable PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 22 SCHEDULE SGE SALE OF TREATED WASTEWATER EFFLUENT (Effective 10/01/11) APPLICATION Applicable for sales of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODUCT AVAILABILITY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHLY RATES (1) Facility Charge Per Bill 3/4“Meter $ 21.95 1” Meter $ 26.25 1-1/2” Meter $ 31.10 2” Meter $ 40.15 3” Meter $ 84.00 4” Meter $155.15 6” Meter $193.85 8” Meter $225.45 10” Meter $271.10 (2) Volume Charge $1.35/1,000 gallons MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. 23 VOLUME CHARGE Billing for the wastewater volume shall be based on the effluent volume calculated during the billing period. Formula: Effluent volume Rate per 1,000 gallons 1,000 24 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION (Effective 10/01/11) APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a wastewater collection system and contracts with the City of Denton for wastewater treatment service. MONTHLY RATES (1) Facility Charge $209.75/bill (2) Pretreatment/Program Charge (As Applicable) (A) Categorical $400.00/bill (B) Non-categorical $50.00/bill (3) Volume Charge $2.35/1,000 gallons Billing shall be based on one hundred (100%) percent of actual gallons measured. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling Charge (each) $60.00 (2) Analysis Charge (per test) Actual cost per test MINIMUM BILLING Facility Charge. WHOLESALE SURCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 25 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 26 SCHEDULE CWM DYNO DIRT PRODUCTS (Effective 10/01/11) APPLICATION Applicable to any and all customers, whether residential, commercial, or wholesale, which elect to acquire the City of Denton’s Dyno Dirt products for their use. The City of Denton reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. RATES Dyno Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyno Soil (Top Soil Blend) $30.00 /Cubic Yard (2) Dyno Dirt $25.00 /Cubic Yard (3) Dyno Lite $30.00/Cubic Yard (B) Wood Mulch (1) Dyno Landscape Mulch $27.50/Cubic Yard (2) Dyno Deco Colored Mulch $30.00/Cubic Yard (3) Dyno Double Grind $17.50/Cubic Yard Purchases for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discount, purchases greater than 100 cubic yards will receive a 40% discount. A contractor’s rate will be given to companies or persons who provide a current and valid resale certificate for inspection. The contractor’s rate includes a 30% discount on any purchase of from 1 to 99 cubic yards at any one time of any Dyno Product of the City of Denton. (C) City of Denton departments will receive a 40 % discount on all purchases of Dyno Dirt products. (D) Asphalt Millings $10.00/Cubic Yard PRODUCT AVAILABILITY The City of Denton produces Dyno Dirt products throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. 27 LOCATION All Dyno Dirt products may be purchased from the City of Denton at the following location: Location Address Compost Sales Bldg Water Reclamation Plant 1100 Mayhill Road, Denton, Texas WHOLESALE PURCHASES All Dyno Dirt products purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is requested. 28 SCHEDULE GBL GRASS/BRUSH/LEAVES (Effective 10/01/11) APPLICATION Applicable to all City of Denton residents who submit for deposit at the landfill grass clippings, brush, and/or leaves, who shall pay the following rates: GRASS/BRUSH/LEAVES: Product Characteristics Charge 1. Uncontaminated bagged or un-bagged $20.00/ton grass, brush, or leaves in less than twelve foot (12’) lengths. 2. Uncontaminated bagged or un-bagged $30.00/ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Contaminated grass, brush, or leaves of any length: $41.00/ton 4. Whole trees and stumps $50.00/ton MINIMUM CHARGE $17.50 per load Professional landscapers, tree trimmers, and yard maintenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer’s location. Grass, brush, and leaves shall not be assessed the City of Denton solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not land filled. 29 SCHEDULE ST WASTEWATER TAP FEES (Effective 10/01/11) APPLICATION This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WITH CLEANOUT Size of Tap Paved Street Unpaved Street 4 inch $2,000.00 $1,410.00 6 inch $2,400.00 $1,570.00 8 inch $2,220.00 $1,730.00 10 inch $2,380.00 $1,865.00 MANHOLE BREAKOUT FEE 6” – 12” Line $165.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 30 SCHEDULE STE TREATED EFFLUENT WASTEWATER TAP FEES (Effective 10/01/11) APPLICATION This schedule applies to the installation, removal, or relocation of treated effluent wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: REUSE WASTEWATER LINE TAPS Size of Tap Paved Street Unpaved Street 4 inch $2,705.00 $1,625.00 6 inch $2,920.00 $1,895.00 8 inch $3,895.00 $2,815.00 12 inch $4,865.00 $3,730.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 31 SCHEDULE OSSF ON-SITE SEWAGE FACILTY PERMIT FEES (Effective 10/01/11) APPLICATION This schedule applies to the new construction of aerobic treatment systems, new construction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Construction of aerobic treatment systems $410 Reinspection Fee of aerobic treatment systems $200 New Construction of non-aerobic treatment systems $210 Reinspection Fee of non-aerobic treatment systems $100 Repair or Alteration fees (All types of OSSF’s) $50 32 SCHEDULE SD STORM DRAINAGE FEES (Effective 10/01/11) APPLICATION Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amount of impervious surface cover that results in water runoff into the City of Denton drainage system. (SDR) MONTHLY FEE – RESIDENTIAL The residential fee is applicable to all single-family through fourplex real properties located within the incorporated limits of the City of Denton, Texas, for which impervious surfaces can be individually identified. The residential fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: Fee Block Per Bill 0 – 600 Square Feet $ 0.50 601 – 1,000 Square Feet $ 1.00 1,001 – 2,000 Square Feet $ 3.35 2,001 – 3,000 Square Feet $ 5.45 3,001 – 4,000 Square Feet $ 7.60 4,001 – 5,000 Square Feet $ 9.75 5,001 – 6,000 Square Feet $12.00 Over 6,000 Square Feet $15.50 (SDN) MONTHLY FEE – NON-RESIDENTIAL The non-residential fee is applicable to all other real property owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The non-residential fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per bill EXEMPTIONS The following real property owned and located within the incorporated limits of the City of Denton, Texas shall be exempt from imposition of the residential fee or the non-residential fee: 1. Real property with proper construction and maintenance of a wholly sufficient and privately-owned drainage system, not draining into the City of Denton drainage system, upon the real property’s inspection and certification by the City; or 33 2. Real property held and maintained in its natural state, until such time that the real property is developed, and all of the public infrastructure constructed thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a structure has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residential fees or the non-residential fees are applicable. 34 SPECIAL FACILITIES RIDER (Effective 10/01/11) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this rider. (2) The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/11) If a special condition or circumstance exists not otherwise provided for by the wastewater rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 35 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on and after October 1, 2011, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the ______ day of ________________________, 2011. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _____________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _____________________________ 36 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, Utilities, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of water rates contained in Ordinance No. 2010-229 for water service rates and water rates; amending the residential water service rate (Schedule WR); amending the commercial/industrial water service rate (Schedule WC); amending the metered water from fire hydrant rate (Schedule WFH); amending the wholesale treated water service rate to the upper trinity regional water district (Schedule WW); amending the wholesale raw water service rate to upper trinity regional water district (Schedule WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WC1); amending the water tap and meter fees, amending the water laboratory testing fees; providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND During the budget presentations, the PUB reviewed the Water Utility budget and the proposed rate changes that would be necessary to support the proposed FY 2011-2012 budget and FY 2012-2016 CIP. The proposed rate increase is designed to increase rate revenues by approximately 9.5%, recover the cost of service from various water tap and meter fee revenues, and provide a positive or break-even net income. The increase also includes funding to support the aging water infrastructure and reserve requirement financial plan objectives. An increase to the wholesale treated water service rate to the Upper Trinity Regional Water District (UTRWD) is proposed based on cost of service analysis. Updates to the UTRWD raw water and raw water pass-through rates are also proposed based on contract requirements. FISCAL SUMMARY The proposed rate increase will provide the revenues necessary to cover the cost of service to customers and support financial plan objectives. The average residential customer using 9,200 gallons per month would incur a $3.66 increase in the monthly charge. AIS – Council September 20, 2011 Page 2 of 2 PRIOR ACTION Proposed FY 2011-2012 Utilities budgets and CIP’s were presented and approved by the Public Utilities Board (“PUB”) during May and June, 2011 respectively. This rate ordinance was presented and reviewed by the PUB on July 25, 2011 and approved for recommendation to the City Council on August 8, 2011. The draft ordinance was provided to the City Council for review on August 10, 2011. This ordinance is scheduled for adoption on September 20, 2011. RECOMMENDATION PUB recommends approval of the Water rate ordinance by a vote of 5-0, with an effective date of October 1, 2011. EXHIBITS 1.Proposed FY 2011-2012 Water Rate Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities ORDINANCE NO.2011-__________ AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 2010-229 FOR WATER SERVICE RATES AND WATER RATES; AMENDING THE RESIDENTIAL WATER SERVICE RATE (SCHEDULE WR); AMENDING THE COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (SCHEDULE WC); AMENDING THE METERED WATER FROM FIRE HYDRANT RATE (SCHEDULE WFH); AMENDING THE WHOLESALE TREATED WATER SERVICE RATE TO THE UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WW); AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); AMENDING THE WHOLESALE RAW WATER PASS- THROUGH RATE TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (SCHEDULE WCL); AMENDING THE WATER TAP AND METER FEES, AMENDING THE WATER LABORATORY TESTING FEES; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES PAGE WR Residential Water Service 2 WC Commercial/Industrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 9 WW Wholesale Treated Water Service to Upper Trinity Regional Water District 10 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 12 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District 13 from Lake Chapman into Lake Lewisville Water Tap and Meter Fees 14 Fire Hydrant Installation 16 Water Laboratory Testing Fees 17 Special Facilities Rider 18 Special Conditions Rider 18 SCHEDULE WR RESIDENTIAL WATER SERVICE (Effective 10/01/11) APPLICATION Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units, with wastewater service within the corporate limits (WR) of the City of Denton, Texas. Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, (WRO) Texas with or without wastewater service. Applicable where the metered water is used for domestic purposes and is not returned to the (WRN) wastewater system for collection and treatment. Applicable where the metered water is used for landscape irrigation purposes and is not returned to (WRI) the wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WRIO) treatment. Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. (WR) MONTHLY RATE – RESIDENTIAL WATER SERVICE; (WRN) AND MONTHLY RATE – METERED WATER NOT RETURNED TO WASTEWATER SYSTEM FOR COLLECTION AND TREATMENT (1) Facility Charge Per Bill 3/4 inch Meter $ 12.00 1 inch Meter $ 15.65 1-1/2 inch Meter $ 20.05 2 inch Meter $ 22.90 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. 0-15,000 gals $ 3.30 $ 3.30 15,001-30,000 gals $ 3.30 $ 4.80 30,001-50,000 gals $ 3.30 $ 6.00 Over 50,000 gals $ 3.30 $ 7.20 2 (WRO) MONTHLY RATES – WATER SERVICE OUTSIDE CORPORATE LIMITS MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $ 13.80 1 inch Meter $ 18.00 1-1/2 inch Meter $ 23.05 2 inch Meter $ 26.35 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.80 $3.80 15,001-30,000 gals $3.80 $5.50 30,001-50,000 gals $3.80 $6.90 Over 50,000 gals $3.80 $8.30 (WRI) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $12.00 1 inch Meter $15.65 1-1/2 inch Meter $20.05 2 inch Meter $22.90 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.30 $4.80 15,001-30,000 gals $3.30 $6.00 30,000 – 50,000 gals $3.30 $7.20 Over 50,000 gals $3.30 $8.40 3 (WRIO) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $13.80 1 inch Meter $18.00 1-1/2 inch Meter $23.05 2 inch Meter $26.35 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.80 $5.50 15,001-30,000 gals $3.80 $6.90 30,000 – 50,000 gals $3.80 $8.30 Over 50,000 gals $3.80 $9.65 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: Gallons in rate block rate per 1,000 gal. in rate block 1,000 gallons 4 RETAIL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. Under Stage 4 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. 5 SCHEDULE WC COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (Effective 10/01/11) APPLICATION Applicable to all commercial and industrial users, or other water users not otherwise classified under (WC) this ordinance, for all water provided at one point of delivery and measured through one meter. Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one (WCO) point of delivery and measured through one meter, with or without wastewater service. Applicable where the metered water is used for commercial purposes and is not returned to the (WCN) wastewater system for collection and treatment. Applicable where metered water is used for landscape irrigation purposes and is not returned to the (WCI) wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WCIO) treatment. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. (WC)(WCN) MONTHLY RATE and (1) Facility Charge Per Bill 3/4 inch Meter $21.95 l inch Meter $26.25 l - l/2 inch Meter $31.10 2 inch Meter $40.15 3 inch Meter $84.00 4 inch Meter $155.15 6 inch Meter $193.85 8 inch Meter $225.45 10 inch Meter $271.10 (2) Volume Charge $3.70 per 1,000 gallons 6 (WCO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $46.15 3 inch Meter $96.60 4 inch Meter $178.45 6 inch Meter $222.90 8 inch Meter $259.30 10 inch Meter $311.75 (2) Volume Charge $4.25 per 1,000 gallons (WCI) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $21.95 1 inch Meter $26.25 l -l/2 inch Meter $31.10 2 inch Meter $40.15 3 inch Meter $84.00 4 inch Meter $155.15 6 inch Meter $193.85 8 inch Meter $225.45 10 inch Meter $271.10 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $3.70 $4.45 (WCIO) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $46.15 3 inch Meter $96.60 4 inch Meter $178.45 6 inch Meter $222.90 8 inch Meter $259.30 10 inch Meter $311.75 7 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $4.25 $5.10 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption Rate per 1,000 gallons 1,000 COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 8 SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 10/01/11) APPLICATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the “Fire Hydrant Meter Use Agreement.” DEPOSIT $1,100 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. The deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $ 4.30 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the “Fire Hydrant Meter Use Agreement”, failure rd by the Customer to return the meter to water utilities by the 3 day of each month for reading, results in acceptance by the Customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $ 83.95 per bill PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 9 SCHEDULE WW WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/11) APPLICATION Applicable to all wholesale treated water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD) Not applicable for temporary, standby, or supplementary service. MONTHLY CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2/WW3) (1) Facility Charge $198.00 per bill (2) Water Volume Rate $0.39 per 1,000 gallons (WD2/WD3) (3) Subscribed Demand Rate $456,915 per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in full, in accordance with the bill payment delinquency provisions provided for below. MINIMUM BILLING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for any one day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. 10 BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 11 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/11) APPLICATION Applicable to all raw water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD), per the Interim Sale of Wholesale Raw Water Contract MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.4010 per 1,000 gallons PAYMENT th Denton shall render bills by the tenth (10) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 SCHEDULE WCL WHOLESALE RAW WATER PASS-THROUGH TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (Effective 10/01/11) APPLICATION Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.0245 per 1,000 gallons PAYMENT Denton shall render bills monthly. Bills shall be due and payable within twenty (20) calendar days of the date a bill for service is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 13 WATER TAP AND METER FEES (Effective 10/01/11) APPLICATION This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Tap Meter Paved Street Unpaved Street 1 inch 5/8 inch x 3/4 inch $1,805.00 $ 805.00 1 inch 3/4 inch x 3/4 inch $1,845.00 $ 845.00 1 inch 1 inch $1,875.00 $ 875.00 2 inch 1-1/2 inch $2,570.00 $1,570.00 2 inch 2 inch $2,580.00 $1,580.00 WATER METER FEES Size of Meter 5/8 inch x 3/4 inch $305.00 3/4 inch x 3/4 inch $345.00 1 inch $375.00 1-1/2 inch $670.00 2 inch $680.00 WATER METER RELOCATIONS Size of Meter Relocation of 10 Feet or Less 3/4 inch $285.00 1 inch $285.00 1-1/2 inch $340.00 2 inch $390.00 14 WATER LINE TAPS Size of Tap Paved Street Unpaved Street 1 inch $1,500.00 $500.00 2 inch $1,900.00 $900.00 4 inch $3,200.00 $1,800.00 6 inch $3,400.00 $2,000.00 8 inch $4,400.00 $3,000.00 12 inch $5,500.00 $4,000.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinkler systems. 15 FIRE HYDRANT INSTALLATION (Effective 10/01/11) APPLICATION This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDRANT INSTALLATION FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hydrant Installation Paved Street Unpaved Street Installation Fee $5,030.00 $3,085.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. 16 WATER LABORATORY TESTING FEES (Effective 10/01/11) APPLICATION Applicable to all customers and entities requesting testing and analysis services from the City of Denton Water/Wastewater Laboratory RATE Fee Description Fee Per Test Colilert (P/A) $20.00 Colilert Quantitray (MPN) $25.00 Heterotrophic Plate Counts (HPC) $25.00 Fecal Coliform (MF) $30.00 Records Search $25.00/hour The testing and analysis fees are established to recover the cost of testing water and wastewater samples. MINIMUM BILLING $20.00 - Testing $25.00 - Records Search PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 17 SPECIAL FACILITIES RIDER (Effective 10/01/11) All service shall be offered from available facilities. If a Customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the Customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/11) If a special condition or circumstance exists not otherwise provided for by the water rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 18 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms of provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on and after October 1, 2011; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _____ day of __________________ 2011. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 19 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for an increase in amplified sound from 70 decibels to 75 decibels and for an increase in hours of operation from 10:00 p.m. to 12:30 a.m. on Friday, October 28 e exception is requested for an increase in amplified sound to 75 decibels from noon to 2:00 p.m. for a sound check and from 7:00 p.m. until 12:30 a.m. for the event. Staff recommends approving the request BACKGROUND The Iota Phi Chapter of the Sigma Chi Fraternity at the University of North Texas is hosting its annual philanthropic event where amateur boxers can register to fight in an American Boxing Association regulated boxing match. The goal of this event is to bring an exciting, safe, and successful event for the community, the students of North Texas, and the businesses on Fry street. The event organizers said the businesses are excited to have this opportunity and hope to see it take place. There will be other planned entertainment to accompany the main event. Live disc jockeys and special guests have attended this popular event in the past and Sigma Chi expects to provide the same this year. The event organizers stated that they donated thousands of dollars to the Huntsman Cancer Institute last year and plan to do so again this year. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None RECOMMENDATION Staff recommends approving the 75 decibel level and for an increase in the hours of operation based on previous action taken by City Council on other outdoor activities located in the same area. EXHIBITS 1.Letter of Request Respectfully submitted: Emerson Vorel, Director Prepared by: Janie McLeod Community Events Coordinator August 31, 2011 To the City of Denton: The Iota Phi Chapter of the Sigma Chi Fraternity at the University of North Texas would like to request a noise exemption for our event, Sigma Chi Fight Night, taking place on October 28, 2011, at 1209 West Prairie in the parking lot behind Riprock’s and Lucky Lou’s on Fry Street. Sigma Chi Fight Night is an annual philanthropy event where amateur boxers can register to fight in an American Boxing Association regulated boxing match. Last year we donated thousands of dollars to the Huntsman Cancer Institute, and we would like to do so again with another successful Sigma Chi Fight Night! th Sound check and ring set up it expected to start at around 12pm on October 28 and should last no more than two (2) hours. The actual event is expected to start between 7pm and 8pm, and should last no later than 12:30 October th 28. According to the sound specifications for Sigma Chi Fight Night, the sound will reach DBA of no more than 75 at peak levels. We can reduce this for the sound check portion if requested! The goal of this event is to bring an exciting, safe, and successful philanthropy event for the community and students of North Texas, and for the restaurants and bars on Fry Street. After speaking with these restaurants and bars, they are excited to have this opportunity and hope to see it take place. We believe the economic impact on the Fry Street businesses will be positive, allowing students and residents the opportunity to catch a great philanthropy event, Sigma Chi Fight Night. There are other planned “filler” entertainments to accompany the main event. Live DJs and surprise special guests have attended this popular event in the past and this year Sigma Chi expects to provide nothing less. Thank you in advance for your consideration on this exciting, potential event for the Denton community to enjoy! Cameron Alewel Sigma Chi Fight Night Chairman 972 345 7341 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Frank Payne 349-8946 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the Construction of the Cast in Place Concrete Portions of the Paisley Street Paving and Drainage Improvements project for the extension and connection of Paisley Street, near Lee Elementary School; providing for the expenditure of funds therefor; and providing an effective date (Bid 3516-awarded to the lowest responsible bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $165,190.88). BID INFORMATION The Paisley Street Paving and Drainage Improvements project consists of constructing 1,021 linear feet (lf) of new asphalt roadway extending Paisley Street from Mack Drive in front of Lee Elementary School to the east to connect to the existing portion of Paisley Street Oak Valley (refer to Exhibit 1). The attached proposal consists of the construction of 1,932 linear feet (lf) of concrete curb and gutter, 195 lf of headwalls, five inlets, three junction boxes, surmountable curb, wheel chair ramps, and various miscellaneous items. A line item description of the project cost is included in the attached Project Estimate Information Sheet (Exhibit 2). The actual asphalt street paving will be performed under a separate annual contract. Bid 3516 is an annual contract to provide miscellaneous concrete related repair and for small construction projects. Council stipulated that any projects costing $100,000 or more that are quoted through this bid must obtain separate Council approval. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) Bid 3516 was originally awarded by Council on July 25, 2011 and has been renewed through July 25, 2012. RECOMMENDATION Approve the award of a contract with Floyd Smith Concrete, Inc. in the amount of $165,190.88. Agenda Information Sheet September 20, 2011 Page 2 PRINCIPAL PLACE OF BUSINESS Floyd Smith Concrete, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This project will begin upon Council approval and is estimated to be completed within 180 days. FISCAL INFORMATION This item will be funded from General Obligation Bond account 350291460.1360.40100. Requisition 104641 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Project Location Map Exhibit 2: Project Estimate Information Sheet Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-Bid 3516 ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE CAST IN PLACE CONCRETE PORTIONS OF THE PAISLEY STREET PAVING AND DRAINAGE IMPROVEMENTS PROJECT FOR THE EXTENSION AND CONNECTION OF PAISLEY STREET, NEAR LEE ELEMENTARY SCHOOL; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3516-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION, FLOYD SMITH CONCRETE, INC. IN THE AMOUNT OF $165,190.88). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3516 Floyd Smith Concrete, Inc. $165,190.88 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ______________________________________ 4-ORD-Bid 3516 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Laura Behrens at 349-8844 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of Two LifePak 15 Defibrillators from Physio Control, Inc., which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4822-Purchase of Two Defibrillators for the City of Denton Fire Department in the amount of $75,383.60). FILE INFORMATION External defibrillators are life-saving devices utilized during the course of treating cardiac related medical emergencies. The Texas Department of State Health Services, the licensing agency for Emergency Medical Service (EMS) providers, requires the devices to certify a Fire Department as an Advanced Life Support (ALS) provider. Over the past five years, medical emergency calls have made up approximately 70 percent or more of the Fire 5,200 resulting transports during this time period, 87 percent of the services provided were reported as Advanced Life Support (ALS). The Fire Department utilizes the LifePak brand defibrillator and carries two models of the unit; LifePak 12 and LifePak 15. All Fire Department apparatus are classified as ALS units. Each front line fire and medical vehicle is equipped with a LifePak. Reserve vehicles are also equipped with LifePaks. Currently, there are 15 LifePak units in service and three back-up units. Of the 18 units, 16 are LifePak 12 models and two are LifePak 15 models. LifePak 12 models are no longer being manufactured and cannot be purchased. Therefore, LifePak 12 models are being phased out and all parts and services are being converted to the newer LifePak 15 model. Maintenance and service for the LifePak 12 models will cease in 2018. There are currently two LifePak 15 units in service and two additional units scheduled for purchase through fleet replacements. The 14 remaining LifePak12 units will need to be replaced before 2018. This purchase will allow the Fire Department to continue the conversion process to the LifePak 15 model. Agenda Information Sheet September 20, 2011 Page 2 FILE INFORMATION The Fire Department currently utilizes LifePak models exclusively. LifePak is the industry leader in defibrillator equipment. Consistency in equipment is vital to the effective and efficient deployment of services. The equipment is interchangeable between all Fire Department apparatuses. This also allows for training and proficiency on the equipment to be streamlined. The LifePaks are integrated into our existing LifeNet program, allowing the transmission of patient information to the receiving hospital, and the Intermedix system which consists of patient care reporting and billing. Additionally, protocols established by the current Medical Control Director call for the use of LifePak defibrillators during the course of providing medical treatment due to the electrical current capacity (360 joules) that only LifePak units can administer. The Fire Department could not identify any vendors within the city limits that supply the LifePak defibrillator units. Physio Control, Inc. is the sole provider of the equipment in our marketplace. Physio Control, Inc. also holds the current maintenance agreements for the Fire existing LifePak units. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Staff recommends awarding the purchase of two LifePak15 defibrillator units to Physio Control, Inc. in the amount of $75,383.60. The purchase price includes accessory equipment and a five year maintenance agreement. PRINCIPAL PLACE OF BUSINESS Physio Control, Inc. Redmond, WA ESTIMATED SCHEDULE OF PROJECT A purchase order will be issued upon Council approval. The units are expected to be in service within 30 days from receipt of the purchase order. FISCAL INFORMATION The LifePak units will be funded from operating account 320100.8535. Requisition# 104309 has entered in the Purchasing software system. Agenda Information Sheet September 20, 2011 Page 3 EXHIBITS Exhibit 1: Equipment Quote Exhibit 2: Sole Source Letter Exhibit 3: Memorandum from Battalion Chief Brad Lahart Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4822 Exhibit 1 Exhibit 2 Exhibit 3 ORDINANCE NO. ____________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF TWO LIFEPAK 15 DEFIBRILLATORS FROM PHYSIO CONTROL, INC., WHICH IS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PERTINENT PROVISIONS OF CHAPTER 252 OF THE TEXAS LOCAL GOVERNMENT CODE EXEMPTING SUCH PURCHASES FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 4822-PURCHASE OF TWO DEFIBRILLATORS FOR THE CITY OF DENTON FIRE DEPARTMENT IN THE AMOUNT OF $75,383.60). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4822 Physio Control, Inc. $75,383.60 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4822 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2011. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4822 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Martha Jensen, tenant of 217 E. Hickory Street, from the Downtown Incentive Reimbursement Grant Program not to exceed $7,235; and providing for an effective date. The Economic Development Partnership Board recommends approval 8-0-1.) ( BACKGROUND City Council adopted the Downtown Incentive Reimbursement Grant Program on April 3, 2007, and allocated $50,000 for the 2010-2011 fiscal year. Grants totaling $50,000 depleted this fund earlier this year. However, a balance of $27,035 remained in the FY 2009-10 allocation from projects that were approved but not completed. Council approved additional grants from the 2009-10 allocation, leaving a current balance of $12,935. If Council deems appropriate, these funds could be used for funding this project. Applicant: Martha Jensen Pilot Point, Texas Martha Jensen is renovating 217 E. Hickory for a Mellow Mushroom Pizza Bakery. This building is located between Travelstead and Cellar 22 and was formerly known as Garbage King. The building owner, Brandon Martino, received a previous grant for this building for $15,000 for for $7,235 is for signage and awnings. Ms. Jensen also owns the Mellow Mushroom Pizza in Fort Worth, near Texas Christian University. She hopes to have the Denton store open by the end of 2011. RECOMMENDATION The Economic Development Partnership Board recommends approval 8-0-1. ESTIMATED SCHEUDLE FOR PROJECT The project should be completed by December 2011. PRIOR ACTION/REVIEW On August 11, 2011 the Downtown Task Force reviewed the grant application and recommended a grant in the amount of $7,235 to the Economic Development Partnership Board. On September 6, 2011, the Economic Development Partnership Board reviewed the grant application and recommended a grant in the amount of $7,235 to the Denton City Council. The motion passed 8-0-1. Agenda Information Sheet 217 E. Hickory September 20, 2011 Page 2 FISCAL INFORMATION The total cost of the project is $16,432. A $7,235 grant represents a return on investment of $1:$2. Please note that the $16,432 budget includes only signage and awnings, and does not cost (owner and tenant) of the project is estimated at $800,000. EXHIBITS Excerpt from September 6, 2011 Economic Development Partnership Board Draft Minutes Ordinance Agreement Grant Application Prepared by: ________ Julie Glover, Economic Development Program Administrator Respectfully Submitted, _____________________________ Linda Ratliff, Director Economic Development Excerpt from the September 6, 2011 Economic Development Partnership Board Draft Minutes: 11.Made a recommendation regarding a Downtown Incentive Reimbursement Grant Application for 217 E. Hickory Street of the request in the amount of $7,235 for a Downtown Incentive Reimbursement Grant Application for 217 N. Hickory Street. The motion was seconded by Strange and carried 8-0-1, with Chair Rivers abstaining. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from John Cartwright, owner of 111 N. Elm Street, from the Downtown Incentive Reimbursement Grant Program not to exceed $5,700; and providing for an effective date. Economic Development Partnership Board recommends approval 8-0-1. BACKGROUND City Council adopted the Downtown Incentive Reimbursement Grant Program on April 3, 2007, and allocated $50,000 for the 2010-2011 fiscal year. Grants totaling $50,000 depleted this fund earlier this year. However, a balance of $27,035 remained in the FY 2009-10 allocation from projects that were approved but not completed. Council approved additional grants from the 2009-10 allocation, leaving a current balance of $12,935. If Council deems appropriate, these funds could be used for funding this project. Applicant: John Cartwright Denton, Texas UNT on the Square and the Fine Arts Theatre. The grant request is for awnings and signage. Mr. Cartwright has changed the façade from a 1950s style building back to a th turn of the 20 century look, with a wedding cake parapet wall. The cloth awnings will be replaced with a historically correct, flat wood and metal awning that will be attached to the front wall with bolts and Texas star exterior brackets. RECOMMENDATION The Economic Development Partnership Board recommends approval 8-0-1. ESTIMATED SCHEDULE FOR PROJECT The project should be completed by the end of 2011. PRIOR ACTION/REVIEW The Downtown Task Force reviewed the grant application on August 11, 2011 and recommended a grant in the amount of $5,700 to the Economic Development Partnership Board. Agenda Information Sheet 111 N. Elm Street September 20, 2011 Page 2 On September 6, 2011, the Economic Development Partnership Board reviewed the grant application and recommends a grant in the amount of $5,700 to the Denton City Council. The motion passed 8-0-1. FISCAL INFORMATION The total cost of the project is $110,000. A $5,700 grant represents a return on investment of $1:$19. EXHIBITS Excerpt from September 6, 2011 Economic Development Partnership Board Draft Minutes Ordinance Agreement Grant Application Prepared by: _________ Julie Glover, Economic Development Program Administrator Respectfully Submitted, ______________________________ Linda Ratliff, Director Economic Development Excerpt from the September 6, 2011 Economic Development Partnership Board Draft Minutes: 12.Made a recommendation regarding a Downtown Incentive Reimbursement Grant Application for 111 N. Elm Street he request in the amount of $5,700 for a Downtown Incentive Reimbursement Grant Application for 111 N. Elm Street. The motion was seconded by Strange and carried 8-0-1, with Chair Marty Rivers abstaining. CITY OF DENTON CITY COUNCIL MINUTES August 2, 2011 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 2, 2011 at 4:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member King, Council Member Watts, Council Member Roden, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs. ABSENT: None. Mayor Burroughs stated that Council would be going into Closed Session. 1.Closed Meeting: A.Consultation with Attorneys – Under Texas Government Code Section 551.071. 1.Consult with City’s attorneys regarding the status and potential settlement of pending litigation styled Love’s Travel Stops & Country Stores v. City th of Denton, Cause No. 2010-50304-367, currently pending in the 367 District Court, Denton County. The Council returned to Open Session at 4:53 p.m. 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda items. 2. Requests for clarification of agenda items listed on the agenda for August 2, 2011. Council Member Gregory asked about Consent Agenda Items F and G and why there was no Parks Board recommendation. Emerson Vorel, Director of Parks and Recreation, stated that typically staff did not take donations of parkland property before the Parks Board, only the purchase of parkland property. Mayor Burroughs asked about Consent Item D and if this bid was separated into two bids, was it anticipated that the two lower bidders would qualify for the smaller excavation of pipe. Frank Payne, City Engineer, stated yes. Council Member Roden asked about Consent Agenda Item A and asked whether the City was incurring a cost for the event. Emerson Vorel, Director of Parks and Recreation, stated that the City was not incurring a cost for this event. City of Denton City Council Minutes August 2, 2011 Page 2 3. Receive a report, hold a discussion, and give staff direction regarding a proposed parking ordinance for portions of the Denia Neighborhood related to activities at the UNT football stadium. Fred Greene, Assistant City Manager, stated that this was the result of many meetings between Denia residents, UNT staff, City staff, City management, and City Council members. He stated that this was one of two parts to the solution of the Denia area residents concerns that had been voiced about the utilization of the stadium. The first portion of it had been solved and that was the traffic issues. An Informal Staff Report was sent to the Council in February that outlined what staff’s plan was for the traffic solutions. Staff planned on implementing that on opening day, September 10. He stated that staff intended to evaluate the parking plan after the first four UNT home football games of the 2011 season. Any necessary changes would be brought back to the City Council for consideration. Greene stated that Paul Abbott, Interim Chief of Police, would present the enforcement portion of the ordinance. This ordinance was the second part to the solution related to the parking issue that Denia area residents had voiced concerns about. Abbott stated that staff had proposed an ordinance establishing a “resident only” parking program for on-street parking for a portion of the Denia area neighborhood. The area affected would be bounded by I-35E service road to the north, Willowwood Street to the south, McCormick Street to the east and Bonnie Brae to the west. Residents that resided in the affected area would have the option to purchase resident parking permits issued by the City of Denton. The permit would be in the form of a placard to be hung on the inside rear view mirror facing the vehicle window. Guest and temporary permits would also be available for purchase. The permit was valid beginning September 1 and ending on August 31 of the following year. All permits would be available at the Denia Recreation Center. Abbott stated that prior to the start of stadium events, the City would conspicuously post signs indicating the locations and times for which parking was by permit only and indicating that unauthorized vehicles might be towed at the expense of the owner or operator. The resident parking only zones would become effective upon the posting of signs in the zone. The Police Department would provide personnel to patrol the affected neighborhood before, during and after the event. The cost of the annual permit was $5.00 per vehicle. One permanent guest pass would be issued for each vehicle permit purchased, up to a limit of three (3) guest passes per residence. Temporary passes to accommodate large gatherings would also be available for purchase at a cost of $2.00. Temporary passes would be valid for a single day only and would be provided on an individual basis. Abbott stated that there would be some costs which included the purchase of twenty-one signs and stands at a total cost of $3,112.56, an estimated cost of $900.00 to design and purchase the parking permits, and an estimated cost of $1,536.00 per event for four police officers and one supervisor to monitor and patrol the neighborhood as well as manage the signs and barricades for each event. City of Denton City Council Minutes August 2, 2011 Page 3 Council Member Roden asked how a resident would know when there was going to be an event at the stadium. Greene stated that there was a Denia Neighborhood Meeting scheduled for August 16 or August 18 and that issue would be addressed at that meeting. Roden asked about the cost of signage. He asked if anyone had asked UNT to assist the City with the costs of any of this. Abbott stated that UNT had not offered any assistance. Roden asked what was the justification for asking the residents to pay the fee to get a permit for their own house. Abbott stated the justification was cost recovery on the permits themselves. 4. Receive a report, hold a discussion and give staff direction regarding revisions to the Denton Property Maintenance Code. John Cabrales, Public Information/Intergovernmental Relations, presented the proposed property maintenance code revisions. He stated that the Council Committee had helped staff with the changes. He reviewed the proposed revisions. The definition of accessory structures was changed. They wanted to make sure it matched the description in the Denton Development Code. The definition of outside storage was changed to make it more clearly indicate that it applied to commercial and residential property. They changed the definition of structure to match the definition in the Denton Development Code. Cabrales stated that in the section for Procedures for Abating Nuisance, they eliminated the language requiring citizens to request a hearing for junk vehicles. In the Grass and Weeds section, they eliminated the right of way language. Some rights of way in the city were actually dedicated to the City and it was the City's responsibility to mow those dedicated rights of way. They removed section (k) because it was duplicate language. Cabrales stated that in the section for Outside Storage, they attempted to simplify this section by including the language from the Development Code. They moved the tarp or screening to another section and added play structure wording to clarify what was included in children’s play structures. Cabrales stated that they added wording to clarify the protection of certain items that were stored outside in public view and also included what was stored under carports. He stated that the section pertaining to washers and dryers had been included, sections (c) and (e) had been included, and also section (d) pertaining to firewood had been included. He stated that wording was added to clarify that churches, schools, or state-regulated daycares were allowed to place play structures in the front yard. Council Member Gregory asked if this was for residential only or for commercial also. City of Denton City Council Minutes August 2, 2011 Page 4 Cabrales stated that it was for both. Gregory stated that there were some stores that had seasonal items not in use, on display. Cabrales stated that there was a section that addressed outside display. Cabrales stated that in the section for Exterior Structures specifically protective treatment of those structures, wording was added to clarify that this regulation applied to residential and commercial structures. This was also done in the section for Interior Structures. Cabrales stated that these were the five revisions that staff had. Staff recommended approval of these revisions. General consensus of Council was to bring the revised ordinance back for approval. The Council returned to the Closed Meeting at 5:43 p.m. 1. Closed Meeting B.Consultation with Attorneys – Under Texas Government Code Section 551.071; Deliberations regarding Real Property – Under Texas Government Code Section 551.072. 1.Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the potential purchase of a 2.0 acre tract, more or less, located in the Hiram Sisco Survey, Abstract No. 1184, Denton, County, Texas, and located generally at the corner of McKinney Street and Oakland Street, City of Denton, Texas. Consultation with the City’s attorneys regarding legal issues associated with the potential acquisition of the real property described above where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. C.Deliberations regarding consultation with the City Attorney – Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations – Under Texas Government Code Section 551.087. 1. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding granting economic development incentives to a property owner City of Denton City Council Minutes August 2, 2011 Page 5 for the purpose of redeveloping a major retail facility in the City of Denton, located at Loop 288 and I-35E. This discussion shall include commercial and financial information the City Council has received from the property owner which the City Council seeks to have the property redeveloped in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives. The Closed Meeting adjourned at 7:03 p.m. The Council convened in Regular Session at 7:10 p.m. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U.S. and Texas flags. 2.PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamations/presentations for this meeting. 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. The procedures for addressing the Council were reviewed. B. Receive citizen reports from the following: 1. Rebekah Hinojosa regarding Denton Beyond Coal Campaign. Rebekah Hinojosa, Sycamore Street, stated that she was part of the Denton Beyond Coal Campaign. She stated that Denton still got nearly half its power from dirty coal and burning coal caused and aggravated asthma attacks, led to toxic mercury and heavy metals contaminating the water, and produced 1/3 of all global warming pollution. She presented letters in support of the campaign. 4. CONSENT AGENDA Council Member King motioned, Mayor Pro Tem Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll call vote, Council Member King “aye”, Council Member Watts “aye”, Council Member Roden “aye”, Council Member Gregory “aye”, Council Member Engelbrecht “aye”, Mayor Pro Tem Kamp “aye”, and Mayor Burroughs “aye”. Motion carried unanimously. City of Denton City Council Minutes August 2, 2011 Page 6 Approved the request below. A. Consider a request for an exception to the Noise Ordinance for amplified sound on a Sunday and an increase in decibels from 70 to 75 for an outdoor concert sponsored by Red Bull North America, Inc. Live music would be performed on Sunday, August 28, 2011, in Lucky Lou's parking lot located at 1207 W. Hickory Street. The exception is requested for an increase in amplified sound to 75 decibels on Sunday from noon to 2:00 p.m. for a sound check and from 5:30 p.m. until approximately 10:00 p.m. Staff recommends approval of the applicant's request. Approved the re-appointment below. B. Consider and confirm the re-appointment by the City Manager of Abraham Benavides to the Civil Service Commission. Ordinance No. 2011-118 C. Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order through the Buy Board Cooperative Purchasing Network for the acquisition of a Hybrid Bucket Truck for the City of Denton Electric Department; providing for the expenditure of funds from the American Recovery and Reinvestment Act Grant in the amount of $48,041 therefor; and providing an effective date (File 4763-Purchase of Hybrid Bucket Truck for the City of Denton Electric Department awarded to Rush Truck Center, Crane in the amount of $132,751 and Altec, Inc. in the amount of $140,713 for a total award amount of $273,464). The Public Utilities Board recommends approval (5-0). Ordinance No. 2011-119 D. Consider adoption of an ordinance rejecting any and all competitive bids for a public works contract for the construction of the Preston and Brown Street 8" Sanitary Sewer Replacement/FM 2499 Utility Relocation Hickory Creek Outfall for the City of Denton (Bid Number 4721); and providing an effective date. The Public Utilities Board recommends approval (4-0). Ordinance No. 2011-120 E. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute on behalf of the City of Denton an Airport Project Participation Agreement with the Texas Department of Transportation relating to certain improvements at the Denton Municipal Airport; authorizing and directing the City Manager or his designee to expend funds as provided for in said Agreement and to execute documents on behalf of the City of Denton in order to implement the project; and providing an effective date. The Council Airport Committee recommends approval (3-0). Ordinance No. 2011-121 F. Consider adoption of an ordinance accepting a deed from Forestar (USA) Real Estate Group, Inc., a Delaware Corporation, conveying to the City of Denton an approximate 15.378 acre tract situated in the Gideon Walker Survey, Abstract Number 1330, Denton County, Texas for Park and Recreation purposes; and providing an effective date. City of Denton City Council Minutes August 2, 2011 Page 7 Ordinance No. 2011-122 G. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Landscape and Maintenance Agreement between the City of Denton and the Preserve at Pecan Creek Homeowners Association Inc., a Texas Non-Profit Corporation regarding a 15.378 acre tract of land located in the Gideon Walker Survey, Abstract Number 1330, City and County of Denton, Texas; and providing an effective date. Ordinance No. 2011-123 H. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Contract of Sale, by and between the City of Denton Texas, as Buyer and Krista M. Black and Joel N. Fountain, as Seller, contemplating the sale to and purchase by the City of Denton of an approximate 0.94 acre tract of real property in the M. Yoachum Survey, Abstract Number 1442, Denton County, Texas, being the tract conveyed from Geneva Potts Trust to David Lee Dosier, et ux, recorded in Volume 4130, Page 453, Real Property Records, Denton County, Texas, also known as 228 Mockingbird Lane, Denton, Texas, for the purchase price of one hundred eighteen thousand five hundred and no/100 dollars ($118,500.00); authorizing the City Manager to execute and deliver any and all other documents necessary to accomplish the closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date. This property will be used to enlarge E. J. Milam Park. 5. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2011-124 A. CONTINUED – Consider adoption of an ordinance of the City of Denton, Texas, approving a 1,805.78 acre detailed plan to amend two (2) previously approved detail plans. The subject detail plan will allow (1) the creation and subsequent development of 4,288 single-family residential lots; (2) a golf course; (3) a baseball field; (4) the relocation of a previous gas park (Gas Park 13) approximately 307 feet north from previously approved location; and (5) the elimination of a previously approved gas park (Gas Park 9). The subject site is located north of Crawford Road, south of H. Lively Road, east of Florence Road, and west of Hunter Ranch Master Planned Community (AMPC10-0001); providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z08-0021, Robson Ranch Planned Development, PD-173) The Planning and Zoning Commission recommends approval subject to conditions (4-1). Council Member Gregory motioned, Council Member Engelbrecht seconded to remove the item from the table. On roll call vote, Council Member King “aye”, Council Member Watts “aye”, Council Member Roden “aye”, Council Member Gregory “aye”, Council Member Engelbrecht “aye”, Mayor Pro Tem Kamp “aye”, and Mayor Burroughs “aye”. Motion carried unanimously. Mark Cunningham, Director of Planning and Development, stated that the Council considered this item during the July 19, 2011 Council meeting at which time the public hearing was closed and staff was given direction to work with the applicants to develop some conditions of approval. City of Denton City Council Minutes August 2, 2011 Page 8 This request would amend two Detailed Plans that were previously approved and it would allow the creation and subsequent development of 4,288 single-family residential lots; a golf course; a baseball field; the relocation of a previous gas park (Gas Park 13); and the elimination of a previously approved gas park (Gas Park 9). He stated that at the public hearing he had stated that the plats for both Gas Well Parks D and E were expired and that no wells were present at either Gas Park. He stated that the two Gas Parks within the Robson PD that had expired plats were Gas Parks D and F, not Gas Park E. There were currently five gas wells on Gas Park E. Cunningham stated that the conditions for approval were included in the ordinance presented in the agenda backup materials. Mayor Pro Tem Kamp motioned, Council Member King seconded to approve. On roll call vote, Council Member King “aye”, Council Member Watts “aye”, Council Member Roden “aye”, Council Member Gregory “aye”, Council Member Engelbrecht “aye”, Mayor Pro Tem Kamp “aye”, and Mayor Burroughs “aye”. Motion carried unanimously. B. Consider nominations/appointments to the City’s boards and commissions. 1. Community Development Advisory Committee 2. Health & Building Standards Commission 3. Historic Landmark Commission 4. Library Board Mayor Pro Tem Kamp nominated Jean Greenlaw to the Library Board. Mayor Burroughs nominated Janay Tieken to move from an alternate position to a regular position on the Health & Building Standards Commission. Council Member King motioned, Council Member Watts seconded to approve the nominations. On roll call vote, Council Member King "aye", Council Member Roden "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Watts “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 6. PUBLIC HEARINGS Ordinance No. 2011-125 A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending Subchapters 14 and 23 of the Denton Development Code (DDC) regarding parking requirements for studio/efficiency and one-bedroom multifamily dwelling units and to provide a definition for Dwelling Units, Efficiency and Studio Apartment; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (DCA11-0002) The Planning and Zoning Commission recommends approval (6-0). City of Denton City Council Minutes August 2, 2011 Page 9 Mark Cunningham, Director of Planning and Development, stated that this was a staff initiated amendment to Subchapters 14 and 23 of the Denton Development Code related to off-street parking. Section 35.14.4.A.2.a of the Development Code stated that studio apartments and one- bedroom multi-family dwellings that were less than 500 square feet were required to provide one off-street parking space per unit. However Section 35.12.5 of the Denton Development Code, established a Minimum Floor Area Requirement for these uses and accessory dwellings at 500 square feet. It was not permissible to build these units with less than 500 square feet. Section 35.14 of the DDC required one-bedroom dwellings that were 500 square feet or larger to provide 1.5 off-street spaces per unit. All one-bedroom units (including studio apartments) must be a minimum size of 500 square feet and must provide 1.5 parking spaces per unit. Cunningham stated that in order to eliminate this conflict, staff proposed that all studio/efficiency and one-bedroom multi-family units (regardless of square footage) provide 1.5 parking spaces per unit. Two definitions were also proposed to be added to Subchapter 23 of the DDC for Efficiency Dwelling Unit and Studio Apartment. The Mayor opened the public hearing. No one spoke during the public hearing. The public hearing was closed. Council Member King stated that he understood the need to clarify definitions. He stated that the reason people built efficiencies was to have inexpensive housing for people to rent. Increasing the parking requirement to 1.5 increased the cost of those units. He felt that it would hurt the infill and that there were areas by the universities that needed efficiencies. He stated that he would like to leave the parking requirement at 1 instead of raising it to 1.5. Council Member Gregory suggested 1.25 spaces per dwelling unit. Council Member Engelbrecht asked how other cities were handling this issue. Cunningham reviewed what other cities required for parking at studio/efficiency and one- bedroom multi-family units. Lewisville required two spaces per dwelling unit. Plano required two spaces per dwelling unit, 1.5 per efficiency unit. Grapevine required 2.5 per dwelling unit. Frisco required two for each 1 or 2-bedroom unit, plus one for each additional bedroom. McKinney required one covered space per unit plus .5 spaces per bedroom. Flower Mound required two per dwelling unit. Southlake required one space per 500 sq. ft. of dwelling unit floor area within the building site. The 1.5 that staff was recommending was in line with and lower than a lot of the cities reviewed. Cunningham stated that the Development Code had provisions that allowed up to a 25% reduction in the number of required off-street parking. In cases where there was a mixed use development, where there was residential, office and commercial, the DDC did not specify that you had any required ratio of what those three uses were just that you needed those three types of uses. City of Denton City Council Minutes August 2, 2011 Page 10 Council Member Roden asked if there were any cities that did not have a set minimum or maximum but they determined on the basis of the geography, the mixed use, and the type of development, that it would be a City Council or Planning and Zoning decision where they would look at what sort of off street parking or on-street parking was available. He asked whether this was something that was happening in other towns. Cunningham stated that staff was in the process of looking at the parking requirement in general. This agenda item was intended to be a quick fix to address the conflict in the Development Code. He stated that there were provisions where a development could have reduced parking spaces based on the mass transit availability or based on how close the development was to a mass transit stop. Council Member King stated that he agreed with everything that staff had proposed except he felt that the parking for studio/efficiency units should remain at 1 parking space. Council Member Engelbrecht expressed concern about leaving the parking for studio/efficiency units at 1 space. Council Member Watts stated that the real issue was not a parking issue it was the definition of a one-bedroom apartment. A one bedroom could be 500 square feet or larger and excluding the one-bedroom from the definition of a studio/efficiency. Mayor Burroughs requested clarification of Council Member King’s statement. King stated that the Code should read that a studio/efficiency unit could have 500 square feet or more and could be allowed one parking space/unit. Mayor Pro Tem Kamp asked if the Planning and Zoning Commission had discussed any of this and if so, what was the result of their discussion. Cunningham stated that the Planning and Zoning Commission wanted a little higher parking requirement in order to keep the vehicles off the street. Council Member Gregory proposed 1.25 parking spaces per studio/efficiency unit. Council Member King motioned, Council Member Gregory seconded to accept the recommendation of staff and the Planning and Zoning Commission with the exception that the parking requirement for studios/efficiencies would be 1.25 parking spaces per bedroom. Council Member Engelbrecht expressed concern about the parking requirement. Discussion followed and the motion was amended to include studios/efficiencies of 600 square feet or less. City of Denton City Council Minutes August 2, 2011 Page 11 The Mayor restated the motion. The motion was to accept the recommendation of staff and the Planning and Zoning Commission with the exception that the parking requirement for studios/efficiencies of 600 square feet or less would be 1.25 parking spaces per bedroom. On roll call vote, Council Member King "aye", Council Member Roden "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Watts “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council Member Gregory stated that in regards to the citizen report, he wanted the other Council Members to know that the Committee on the Environment had asked staff to develop new goals for use of renewable energy. He also stated that they had received Informal Staff Report No. 11- 053 with an update on apartment recycling. He stated that he would like to see staff prepare a draft ordinance that would require apartments to provide space to accommodate recycling bins but only for new apartment construction with more than six units. Council Member Roden thanked Rebekah Hinojosa for keeping them updated on renewable energy. He also announced that the Southeast Denton Back to School Event would be on Saturday, August 13 at the MLK Recreation Center. The major donor could not donate backpacks this year and they were about 1,000 backpacks short. Also, he stated that an emergency shelter had been set up and thanked staff members from several entities that had helped to set up this shelter for people to use as long as the temperature was 105 or more. Council Member Watts stated that he had received e-mails from some citizens about the traffic across Nowlin Road and would like an update on where the City was with that issue. He stated that he would like a work session item on apartment recycling. Mayor Burroughs stated that he would like commercial recycling added to the work session item on apartment recycling. Council Member Engelbrecht stated that he would not be at the budget workshop on Thursday. City of Denton City Council Minutes August 2, 2011 Page 12 B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Mayor Burroughs indicated that the Council would not be going back into Closed Session. C. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. Mayor Burroughs indicated that there would be no official action on Closed Meeting items. With no further business, the meeting was adjourned at 8:13 p.m. ____________________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS ____________________________________ JANE RICHARDSON ASST. CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 4, 2011 After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Special Called Work Session on Thursday, August 4, 2011 at 8:30 a.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Gregory, Council Member Watts, Council Member Roden Mayor Pro Tem Kamp, and Mayor Burroughs ABSENT: Council Member Engelbrecht and Council Member King. 1. Receive a report, hold a discussion and give staff direction on the 2011-12 City Manager's Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City Manager Campbell stated that Council had received a copy of the budget proposal. There were no surprises as the budget had been discussed over the past year and those discussions had been incorporated into the proposal. Bryan Langley, Chief Financial Officer, presented the overview and purpose of the discussions. Those included a review of key elements of the Strategic Plan; a discussion on the key assumptions in the General Fund; presentation of the General Fund Supplemental Packages recommended for approval by the City Manager; a review of 2011-12 proposed Five Year Financial Forecast for the General Fund; a discussion on the five year CIP plan and future GO/Co bond issuances; discussion on budget recommendations for the utility funds; a review of other funds and information and an outline of the next steps. Strategic Considerations – this discussion included a review of the Strategic Plan and alignment with the budget development and a discussion on the key focus areas. The key focus areas included organizational excellence; public infrastructure; sustainable economic development and environmental stewardship; safe, livable, and family friendly community; and partnerships and regional leadership. The goals associated with these key focus areas were reviewed. General Fund – The General Fund was discussed in terms of fund balance, revenue characteristics, sales tax, appraised value, and other key revenues. Fund Balance reserves were expected to remain above the target level of the planning horizon. General Fund Revenue components were reviewed. It was noted that approximately 85% of the revenue came from ad valorem taxes, sales taxes, transfers in and franchise fees. Transfers included Return on Investment and administrative cost charges. Council Member Gregory asked for an explanation of the difference between transfers, cost of service and return on investment Langley stated that cost of service was services provided from individuals or departments that were shared throughout the organization and transferred back into the General Fund. Return on Investment was the charge for utilities. Sales Tax – Langley continued with a review of the 2011 monthly changes in sales tax collection which were looking very strong at this point in time. City of Denton City Council Minutes August 4, 2011 Page 2 Council Member Watts asked if the increase included Rayzor Ranch North as it had not achieved a build-out for a rebate. Council Member King joined the meeting. Langley replied that was correct plus the economic development incentives now had its own category and the amount in the fund was backed out from the sales tax revenue. Economic development incentive agreements previously were netted from revenue. A 2% increase in the base sales tax revenue was forecasted for 2011-12. Appraised Values – The certified appraised value was $6.312 billion for 2011. That was a 2.93% increase compared to 2010 value of $6.230 billion. A 2% decline had previously been forecasted. $1.4 million of additional revenue was realized compared to early forecasts, but that was only marginally higher than more recent estimates. In 2009 the Council endorsed a plan to increase the over 65 property tax exemption in $5,000 increments. The goal was to achieve a $50,000 exemption level by 2013-14. The proposed budget included a $5,000 increase in the over 65 exemption level to a $40,000 level for 2011-12. Council Member Roden asked if the sales tax revenue could be tracked on type of business segments and where it was done geographically. Langley stated that the State Comptroller did the categories and were not noted geographically. Downtown TIF – The Downtown TIF was established in 2010 for the purpose of improving development in the Downtown area. The 2010 base was $79 million and the 2011 value was $81 million which resulted in a gain of $2.3 million. Based on this increase in value the TIF would receive $15,871 in property tax revenue for 2011-12. No expenditures had been established at this time by the TIF Board. Council Member Watts asked about new construction versus reconstruction in appraised value. Langley stated he could get those figures from the Appraisal District. He reviewed the appraised valued history from 2002-2012. Property Tax Rate – The property tax rate was comprised of two components; operations and maintenance which were deposited in the General Fund and the GO Debt Service which was deposited into GO Debt Service fund. No tax rate increase was proposed for 2011-12. Mayor Burroughs asked if the COs were similar to the GO debt in that the COs were paid by the General Fund. Langley stated that all were paid out of the GO Debt fund. Truth in Taxation Information – the Texas Property Tax Code mandated the calculation and publication of the effective and rollback rates. The effective tax rate was the calculated rate that would generate the same amount of tax revenue as the previous year based on the new appraised values on existing property. The rollback tax rate was the highest rate the city could set before taxpayers might initiate a rollback petition. If the proposed tax rate exceeded the effective rate, City of Denton City Council Minutes August 4, 2011 Page 3 Council must vote to consider the tax increase on August 16th and hold a public hearing on the thth tax rate on September 6 and 13. The 2011-12 effective tax rate was estimated to be $0.697757 and the rollback tax rate was estimated to be $0.745030. The proposed tax rate of $0.68975 did not exceed the effective tax rate, so a separate vote and hearing was not required by Council. If Council elected to adopt the effective rate, an additional $513,254 in property taxes would be generated. Council Member Roden questioned if there had been a history of going to the effective tax rate. Mayor Pro Tem Kamp stated that it had been done only twice in the past nine years. Other key revenues - Franchise fees were estimated to be $13.4 million in 2011-12. A portion would be accounted for in the newly created Street Improvement Fund in 2011-12. Interest income was expected to remain extremely low due to unusually low interest rates. General Fund expenditures – Langley stated that he would be detailing expenditure characteristics, cost containment strategy/reductions, expenditure enhancements, compensation plan, and proposed 2011-12 General Fund Five Year Forecast. He reviewed expenditure components and the General Fund budget by department. Prior reductions - in 2009-10 approximately $1.1 million in reductions were included in the adopted budget. The 2010-11 General Fund budget included approximately $5.2 million in reductions compared to initial forecasts. Key reductions included overtime, Technology Services, training and travel budget reductions, Efficiency Team implemented initiatives, the elimination of transfers to the Gas Well fund, the transfer of the Keep Denton Beautiful program to Solid Waste, and the elimination of a pay increase. Vacancy Management Plan- no layoffs had occurred but the equivalent of 22 positions were not filled in 2010-11. The Vacancy Management Program sought to achieve at least $1.45 million in savings. For 2011-12, the Vacancy Management Program was recommended to continue. $0.9 million in savings was planned with the number of vacant positions reduced to 14. Cost Containment Strategy - for 2011-12 the intent was to maintain the previous reductions made in 2010-11 and 2009-10. Most prior year reductions were not restored. Additional efficiencies and cost reductions would also be explored throughout the upcoming fiscal year. They were not expected to be as significant as prior years and the focus would be on productivity improvements. GF Supplemental Recommended Packages - $6.0 million and 15.2 full time employees (excluding streets) in supplemental packages were submitted to the City Manager for consideration in the General Fund. Council Member Roden asked about the 14 vacant positions as opposed to the 15 new positions. He questioned if there was a difference in priorities for those positions. Langley stated that the 15.2 new positions were in addition to the 14 vacant positions. The supplemental list was only for new positions. City of Denton City Council Minutes August 4, 2011 Page 4 Council Member Roden asked if the new positions were more necessary than the vacant positions. Langley stated that some of the new positions were more important than vacant positions. Recommended General Fund Supplemental packages – Langley reviewed the General Fund recommended supplemental packages for Parks, Library, Traffic Planning Police, Fire, Cable, Animal Control, and Facilities Management. Council Member Gregory asked if funding was included for a cross walk and signalization at Hickory. Mark Nelson, Director of Transportation, stated that funding for the Hickory Street project was associated with funds for the Transit Center. Council Member Roden asked about the $50,000 funding for the bike plan. Langley stated that staff was bringing that information to the Mobility Committee and the Traffic Safety Commission to determine how to cost that out. City Manager Campbell stated that the first drafts of the plan were in hand and would be reviewed by the Planning and Zoning Commission, the Mobility Committee and the Traffic Safety Commission. There was a minimal amount to start the process. Council Member Roden stated that the street maintenance plan seemed to include striping the street and not other maintenance issues rather than bike path improvement. City Manager Campbell stated that improvements for bike paths would come from the bike plan funding. Council Member Roden asked if dollar figures were attached to the plan when adopted. City Manager Campbell stated that when the plan was adopted, there was no expectation that the bike plan might be recommended in one or two years. The long term plan was to put in dollars that could be implemented for a particular year. Langley stated that the figure was $50,000 for 2011-12 and with recurring costs for future years. Mayor Burroughs asked about the COPS program which was CDBG related and which might be eliminated on the federal level. Langley stated that originally it was anticipated that the city would received five officers but the city did not receive the funding and there was no funding sources in the budget. Mayor Burroughs noted that perhaps in future years, there could be council initiated supplemental packages. City of Denton City Council Minutes August 4, 2011 Page 5 Council Member Gregory asked staff to investigate if there would be enough revenue from the gas well inspection fees to cover the costs of enough inspectors to cover all the gas wells in Denton. Council Member Watts stated that in terms of the $50,000 Downtown Incentive grant there were several grants that were retroactive. He felt there should be a discussion whether the funds were created/achieved their purpose and perhaps re-evaluate how those funds were used. Langley review additional packages that had been recommended for funding. Those included a JD Edwards financial software upgrade; self-contained breathing apparatus, Life Pak defibrillators, personal protective equipment, and mobile data communication unites for the Fire Department; a remodel of Human Resources/Risk Management offices; Fire Station 4 remodel and Station 2 parking lot repairs; and a cost allocation study. General Fund – Overall the General Fund budget had been reduced by $1.8 million compared to 2010-11 with a large portion of the decrease related to the newly created Street Improvement Fund. Recurring revenues were balanced with recurring expenses in FY 2011-12. The 2011-12 budget anticipated a reduction of $1.08 million in the fund balance for the one-time purpose of a transfer of fund balance to a street improvement fund, funding for a comprehensive plan update and other miscellaneous one-time items. The 2011-12 proposed budget also identified $192,616 in funding which could be used for additional street maintenance funding; implementation of various elements of the bike plan; additional traffic signals; Comprehensive Plan update contingency funding; DCTA Downtown shuttle operating costs; or neighborhood improvement incentives. If Council elected to adopt the effective tax rate, an additional $784,978 in property taxes would be available for these initiatives as well. Staff was seeking Council input regarding specific initiatives and funding levels. Council Member King stated that if that money was not spent, the General Fund would be reduced by that amount. Langley stated that was correct. Council Member Roden asked if the $192,616 had to be locked in or could it be in an account for Council discretion for later use. Langley stated that the funds could be set up in a discretionary fund for later use per Council direction. Compensation - Langley stated that compensation in 2009-10 did not include any base rate increase for employees. There was a one-time lump sum payment equivalent to 2% of pay included. Fiscal year 2010-11 did not include any merit increases for employees with a 2% merit increase forecasted for each subsequent year. Fiscal year 2010 and 2011 budgets did include normal step increases for police/fire civil service employees. Public Safety positions were subject to Meet and Confer agreement conditions. For FY 2011-12, an average 2% merit increase was included for non-Civil Service positions and a 2% increase was included for Civil City of Denton City Council Minutes August 4, 2011 Page 6 Service positions. A 2% base pay increase was forecasted for each subsequent year of the five year financial forecast. Mayor Burroughs asked how much a 2% increase represented. Langley stated it was approximately $480,000. Step increases for Civil Service would be an additional amount. Mayor Burroughs asked if staff had a comparison of what other cities were doing in terms of compensation. Langley stated that Arlington was proposing a 4% lump sum; Carrollton 2%; Dallas, Ft. Worth, Irving were still preparing figures; Frisco had proposed a 3% increase; McKinney a 2% increase and Plano a 2% increase. Mayor Pro Tem Kamp requested a matrix of comparison of other cities. Summary of Assumptions – Langley presented a summary of assumptions in the General Fund in terms of appraised value growth, sales tax growth, compensation, tax rate and future bond sales. He also reviewed the proposed 2011-12 General Fund long term plan which assumed a 3% ad valorem growth in 2013 and 4% each year thereafter. It also included a one cent tax increase in 2014-15. Street Improvement Fund – Langley indicated that he would review street maintenance funding challenges, discuss strategic plan objectives, and outline proposed funding solutions. Street Maintenance funding - during the 2011 City Council retreat these street issues were discussed: the OCI rating (quality) of streets had deteriorated over the past several years; the current level of street maintenance funding was insufficient to maintain the current OCI rating; and a long-term strategy should be developed to address maintenance and capital fund requirements. In response to the adopted strategic plan, the 2011-12 proposed budget recommended the creation of a stand-alone “Street Improvement Fund” to be separate and distinct from the General Fund and a $303,384 increase in street maintenance activities. Additional funding could be achieved through the transfer of future increases in the franchise fee revenue compared to 2010-11 or a transfer of interest cost savings from Utility Funds as a result of the issuance of COs instead of Utility System Revenue Bonds. Mayor Burroughs stated that there was a large percentage of COs as opposed to GOs. He requested a break out of the COs listed on page 89 of the budget book which were utility related COs and asked if in the tax rate were all of the utility-related COs removed from that debt service item. Langley stated that page 89 of the budget book indicated those figures. Council Member Roden asked about street maintenance and how it was shown in the overall budget. Langley stated that it was represented in the street improvement fund. City of Denton City Council Minutes August 4, 2011 Page 7 Funding Justification – a linkage existed between franchise fees received and street use. Franchise fees would be used for rights-of-way acquisition and maintenance and use of streets in public rights-of-way by utilities. Franchise fees were not required to be spent on streets or any other purpose. These represented General Fund resources that could be spent on any Council approved purpose. As a result of issuance of COs instead of Revenue Bonds, interest cost savings would be generated in the Utility funds. Interest cost savings were proposed to be transferred from the Utility funds to the newly created Street Maintenance fund. This developed an additional street maintenance revenue stream and was a logical connection with utility operations since there were heavily utilized rights-of-way. He reviewed a proposed increase in funding for street maintenance activities only. For 2011-12 the entire $5.7 million Street Department budget was proposed to be accounted for in the Street Improvement Fund. GO Debt Service Fund – Langley indicated that he would be reviewing the updated long-term forecast and assumptions and the planned future bond sales and potential issues. GO Debt Service Fund 2011-12 - There was no tax rate increase planned for the fund. The appraisal growth assumptions mirrored those in the General Fund with a 3% growth in 2012-13 and a 4% growth in 2013-14 and each subsequent year. Staff recommended issuing $4.0 million in GO bonds (remaining from 2005 bond election) in FY 2011-12. $4 million in COs was also proposed for vehicle replacements and facility improvements. $0.4 million in COs was proposed for traffic signals and $3 million in COs was planned for the Animal Care and Adoption Center consistent with Council direction. GO Debt Service Fund – 2012-13 and Beyond – a $20 million streets only GO Bond Program was proposed for FY 2012-13 which would have to be voter approved. These were required for reconstruction of streets in conjunction with an increase in maintenance; included all costs for engineering, right-of-way, signalization, drainage, and construction activities; required that the Public Safety Training facility be delayed until funding could be obtained; and assumed no tax rate increase in the GO Debt Service Fund. The process for developing specific program detailed for 2012-13 would be discussed with the Council over the new few months. $9 million in COs was planned to be issued for the City's required match on Bonnie Brae and Mayhill projects in 2013-14. An additional $40-50 million bond program was also tentatively planned for 2015-16. Other Major funds – other major funds to be discussed included the Electric Fund, Water Fund, Wastewater Fund, Solid Waste Fund, Health Insurance Fund and other miscellaneous funds. Utility Fund Overview – the Public Utilities Board had recommended the proposed utility budgets to the Council on June 27th. All funds assumed an average 2% increase in compensation for employees which was the same as the General Fund. Expenditure reductions in prior years had been retained to minimize rate increases with an emphasis to maintain service delivery levels. Major impacts on the 2011-12 operating budget, CIP and Five-Year Financial Forecasts included an aging infrastructure which presented challenges; lower growth rates that had reduced revenue forecasts; and the cumulative effects of lower growth which resulted in lower impact fee revenue forecasts. The proposed budgets were subject to the following risks that might affect financial performance: growth projections and commodity market pricing/fuel costs; material and equipment costs; and regulatory compliance requirements. The following strategies and objectives had been developed to strengthen the financial integrity of each utility: City of Denton City Council Minutes August 4, 2011 Page 8 a phase-in for the replacement of aging infrastructure with current revenue funding and reduced reliance on debt financing; reach and maintain sufficient reserve fund balances based on average daily expenses and unique operational aspects of each utility: maintain water and wastewater impact fee reserve balances at $1 million for each utility; maintain water and wastewater development plan line reserve balances at $1 million; and maintain reserve debt coverage ratio at 1/25 or better for each utility. Electric Fund – proposals for the Electric Fund included no base rate increase for electric utility customers; a reduced revenue forecast from the prior year estimate; the addition of two new FTEs. Major 2011-12 CIP projects were reviewed. Water Fund – proposals for the Water fund included a net 0.5 FTE decrease and a 9.5% rate increase proposed for 2011-12. Major 2011-12 CIP projects were reviewed along with the Water Five Year Financial Forecast. Wastewater Fund – The Sanitary Sewer Overflow Program required the addition of 3.5 FTEs, new equipment and capital expenditures. Four new FTEs (2 FTEs in Collections/1.5 FTEs in Wastewater Administration/0.5 FTEs in Pretreatment) were proposed. An 11% rate increase was proposed for 2011-12. Major 2011-12 CIP projects were reviewed along with the Wastewater Five Year Financial Forecast. Council Member Gregory asked for an informal staff report regarding the efficiency and effectiveness study that was done regarding Materials Management and the Warehouse. Solid Waste Fund - Curbside recycling services were recommended to be brought in-house in November 2012 which would result in a net lower cost than private services. Seven FTEs (6 FTEs for Curbside Recycling program/1 FTE for Construction and Demolition Operations) were included in the proposed budget. Six FTEs would be added in the last 2 months of the fiscal year. The proposed budget also included new technologies and expanded services initiatives over the next 5 years with various residential and commercial rate increases proposed for 2011- 12. Major 2011-12 CIP projects were reviewed as well as the Solid Waste Five Year Financial Forecast. He noted that the working capital balance target was 30 days with 8% of expenses and the residential service balance target was 14 days and 4% of expenses. The overall monthly rate impact for the average residential customer was reviewed which represented a $7.22 increase in a monthly bill. Health Insurance Fund – employee insurance premiums were not proposed to increase in 2011- 12. City contributions were proposed to increase 6% with no plan design changes proposed for the next fiscal year. It was expected that the Health Services Clinic would be opened in 2012. Parks Gas Well Fund - $350,000 in expenditures were proposed in the budget which would improve various city parks and facilities. Non-Airport Gas Well fund – the fund was expected to end in 2010-11 with $1.6 million in the unrestricted fund balance. In 2011-12 $0.6 million was proposed for the completion of a Comprehensive Plan update. It also assumed $1 million for a planned purchase of property. That would exhaust the funds in the account. City of Denton City Council Minutes August 4, 2011 Page 9 Fleet Services Fund - DCTA and the City had entered into a discussion concerning a possible partnership for fleet maintenance operations. Figures for that partnership were still preliminary due to ongoing negotiations. Other funds – the HOT Committee had provided recommendations for the Tourism and Convention Fund with the intent to minimize an increase in funding for various organizations. The goal was to increase the fund balance and create future capacity for convention related costs and services. Materials Management Fund was reduced by 1.5 FTE due to the reorganization of the operations. The Risk Retention Fund was proposed to increase by 1 FTE due to the addition of a Benefits Leave Coordinator position. Capital Improvement Program budget and grant funds budget were also included. Summary Information – Langley stated that Summary Information would include a FTE Summary, budget summary, and next steps for Council. Langley reviewed the Full Time employee summary which showed an increase in 27 employees proposed for the next fiscal year. That number included the 14 positions which would not be filled. Total expenditure budget by fund was discussed and the proposed budget by fund was shown. The total budget was $585.4 million for all funds. th Next steps included the publishing of the effective and rollback tax rate on August 7; a budget th work session on August 9; a budget work session and vote to consider the tax rate increase on ththth August 16; budget work sessions and tax rate/budget public hearings on September 6 and 14; and Council adoption of the tax rate and approval of the Annual Program of Services on th September 20. Closed Meeting A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric (“DME”) for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. Council did not meet in Closed Session. With no further discussion, the meeting was adjourned at 1:03 p.m. _____________________________ __________________________ MARK A. BURROUGHS JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 9, 2011 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 9, 2011 at 4:00 p.m.in the City Hall Conference Room at City Hall. PRESENT: Council Member Gregory, Council Member Engelbrecht, Council Member Watts, Council Member Roden, Mayor Pro Tem Kamp, and Mayor Burroughs ABSENT: Council Member King. 1.The Council received a report, held a discussion, and gave staff direction on the 2011-12 Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Mayor Burroughs stated that this item was a placeholder for any additional Council questions. Mayor Pro Tem Kamp asked how the Street Maintenance Fund would look like at the end of five years and what it would look like if all of the incremental part of the franchise fees were put in the Fund. Bryan Langley, Chief Financial Officer, stated that staff would provide that information to Council in their Friday packets. He felt that such a move would have a negative position in the Fund Balance. City Manager Campbell stated that it would get the fund to $6 million much faster. Council Member Roden asked if the $6 million would include only OCI maintenance or all of the streets. Langley stated it would be for the OCI. Council Member Watts stated that in terms of the $192,160 in additional funding, he felt that the Council should keep the mentality of austerity to keep in balance with the budget. He did not want to overspend in light of this good news but rather hold the line on spending. Council Member Gregory spoke regarding the $50,000 for the bike plan. The Mobility Committee had a draft of the bike/pedestrian plan. He questioned how much would be going towards the bike plan. The plan had street sections and prices of projects in the range of $667,394 to $1.6 million which did not include right-of-way and engineering costs. $50,000 was not much in terms of what was needed. He agreed with the concept of not spending the additional dollars but felt there was a plan and a need to fund that plan. Assistant City Manager Martin stated that the short term average cost for the bike plan was $25,000 per mile which would not include right-of-way and engineering costs. Council Member Watts questioned the cost of the right-of-way and engineering. Martin replied that a minimal purchase of right-of-way was anticipated and depended on the segment that was being considered. Council Member Watts felt the he needed education on why the Comprehensive Plan was projected to cost $800,000 - $1 million. City of Denton City Council Minutes August 9, 2011 Page 2 Mayor Burroughs stated that a review was needed to make sure the City was following the plan. The process was already a year behind in implementation. Assistant City Manager Greene stated that staff could show how much each element would cost. Mayor Burroughs asked to include the cost for the prior process. Council Member Engelbrecht stated that he had been involved in two prior Comprehensive Plan reviews and encouraged staff to have public participation and public knowledge of the City activities. Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric (“DME”) for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. This item was not considered. B. Consultation with Attorneys – Under Texas Government Code Section 551.071. 1.Consult with, and provide direction to, City’s attorneys on legal rights, restrictions, obligations, and issues associated with the proposed annexation of DH-7, DH-9, and DH-12, where a public discussion of such legal matters would conflict with the duty of the City’s attorneys to the City of Denton, Texas under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, and where such matters may become an issue in potential litigation. The Council adjourned from the Closed Session at 5:35 p.m. The City Council attended a reception for Board and Commission members in the Council Work Session Room at City Hall. The City Council convened in the Council Chambers at 6:00 p.m. 1. The Council considered approval of a resolution of appreciation for retiring Board/Commission members. City of Denton City Council Minutes August 9, 2011 Page 3 Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to approve the resolution of appreciation. On roll call vote, Council Member Roden "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Watts “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 2.Oath of Office for New and Continuing Board Members. City Secretary Jennifer Walters administered the oath of office to the new and continuing board members. With no further business, the meeting was adjourned. _____________________________ MARK BURROUGHS MAYOR CITY OF DENTON, TEXAS _____________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 16, 2011 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 16, 2011 at 3:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Gregory, Council Member Engelbrecht, Council Member Roden, Mayor Pro Tem Kamp, and Mayor Burroughs ABSENT: Council Members King and Watts 1. Citizen Comments on Consent Agenda Items There were no citizens requesting to speak on Consent Agenda Items. 2. Requests for clarification of agenda items listed on the agenda for August 16, 2011. Council Member Roden indicated that he would not be voting on Consent Agenda Item N and that it would have to be considered individually. Council Member Gregory asked if Consent Agenda Item M would be presented with major points of discussion at this meeting. Mayor Burroughs asked if Council Member Gregory would like to make the discussion of the item more public. Council Member Gregory responded that would be his intent. Mayor Burroughs suggested pulling the item from the Consent Agenda and considering it individually. City Attorney Burgess indicated that a substitute ordinance and service plan had been provided to Council for Consent Agenda Item 5B. She recommended that Council act on those substitutions when they were ready to consider the item. Council Member King arrived at the meeting. 3. Receive a report, hold a discussion and give staff direction on the 2011-12 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Bryan Langley, Chief Financial Officer, presented details on monthly changes in sales tax collections for FY 2010-11. He stated that due to continued strong collections, staff recommended that the sales tax estimate be revised to $22.796 million for FY 2010-11. That was $0.139 million higher than the figure included in the FY 2011-12 proposed budget which increased FY 2010-11 surplus to approximately $1.6 million. Additionally, FY 2011-12 estimate was recommended to be increased to $23.446 million which was $0.141 million higher than FY 2011-12 proposed budget. The additional revenue could increase the fund balance in FY 2011- 12 or be used to fund City Council identified initiatives ($192,616 increased to $333,676). Proposed Increase in Funding – Street Maintenance Activities only – Langley indicated that for FY 2011-12 the entire $5.7 million Street Department budget (including the proposed funding) was proposed to be accounted for in the Street Improvement Fund. He reviewed information on City of Denton City Council Minutes August 16, 2011 Page 2 the current budget, bond sale savings, franchise fee growth, annual funding and cumulative funding for 2011-12. Council Member Roden questioned at what point, in terms of streets, would the funding model for adding bike lanes be on a schedule to redo a street. He asked when it would become one project and not two for street maintenance and one for bike lanes. Jim Coulter, General Manager-Water Administration, indicated that initial implementation would have to determine signage and stripe the lanes. As the project moved further down in the process, it would become part of the regular maintenance procedure. Proposed FY 2011-12 General Fund Long Term Plan – Langley reviewed the proposed 2011-12 General Fund long term plan which assumed a 3% Ad Valorem growth in 2013 and 4% each year thereafter. It also included a 1 cent tax increase in 2014-15. This also included the impact of additional sales tax collections. Potential Revised Increase in Funding – Street maintenance activities were reviewed in terms of the current budget, bond sale savings, franchise fee growth, annual funding and cumulative funding. The figures for the franchise fee growth included 100% of the franchise fee growth over 2010-11 allocated for 2012 and subsequent years. Langley next reviewed the revised 2011-12 General Fund Long Term Plan which assumed a 3% Ad Valorem growth in 2013 and a 4% growth each year thereafter. It included 1 cent tax increase in FY 2014-15 and included the impact of the additional sales tax collection. The revised long term plan did maintain the effective fund balance of 20% throughout the years. General Fund - the 2011-12 proposed budget identified $333,676 in funding which could be used for: additional street maintenance funding; the implementation of various elements of the bike plan; additional traffic signals; comprehensive plan update contingency funding; DCTA downtown shuttle operating costs; or neighborhood improvement incentives. Staff was requesting Council input regarding specific initiatives and funding levels. Mayor Pro Tem Kamp indicated that establishing a separate street fund was a major step forward. She questioned if this would improve the OCI or maintain the current rating. Langley stated that it would help with the OCI but that $10 million was needed. The additional funding would slow the decline but not stop it. There were two pieces of funding for streets - one involved maintenance and one involved reconstruction. Mayor Pro Tem Kamp questioned what would happen to the OCI if 100% of the franchise fee increase were allocated. Langley stated that $5.5 million was needed for one OCI. Council Member Gregory asked about the proposed bond program for streets. Langley stated that $20 million was proposed for 2013. City of Denton City Council Minutes August 16, 2011 Page 3 Council Member Gregory asked how that amount was determined. Langley stated that staff had identified the amount needed for street reconstruction and added right-of-way acquisition and engineering costs to make up the $20 million plus considered the tax rate. Council Member Engelbrecht stated that some streets were not in the reconstruction category and felt that some streets in the reconstruction did not make any difference. He felt how the money was used was more important than just the OCI itself. He questioned if doing streets above the reconstruction level would not change the cost. Coulter stated that would be technical criteria to be considered when staff started having meetings with Council. Some streets in the 40-45 range already were in reconstruction but could still get 5-7 years out of that road before reconstruction was needed. A consideration would be which roads to repair first that would be of the most benefit for the community. Mayor Burroughs asked how the overall OCI was computed. He questioned if when a street went below a certain level did it drop off and was then in a different category and not computed in the OCI. OCI to him meant that the roads were salvageable. Coulter stated that the process was getting the most good out of the money that was available. Mayor Burroughs noted that the worst roads with a low volume could bring down the whole average. Coulter stated that was correct. Mayor Burroughs felt that process distorted what was serviceable. If a road was not serviceable it should be dropped off the list and not included for repair figures. Coulter stated that there may be some low OCI with high volume that might need attention earlier than other streets. Volume would be another category to consider when determining which streets to include. Council Member King stated that at first glance he would be in favor of 100% of the franchise fee growth and put the $333,000 back into the budget. Council Member Roden stated that he had not heard anything about a DCTA downtown shuttle and asked about the operating costs for that service. Mayor Pro Tem Kamp stated that the Mobility Committee had reviewed it. DCTA had presented the proposal to the Mobility Committee. Council Member Roden asked what would be the cost to the City per year. Langley stated that it would be approximately $100,000-155,000 depending on the type of service and the frequency of the service. City of Denton City Council Minutes August 16, 2011 Page 4 Council Member Gregory suggested that the schedule line up with train arrivals so that the shuttle would be operating at those times. Mayor Burroughs asked if the additional funding could be done by specific allocations over the next several months as Council saw a need. He asked if the funds could be put in the Fund Balance and used as necessary. Langley stated that funding could be brought back as the project matured. If Council wanted to do more for street maintenance funding, staff needed to know that now rather than later. If not, the funds could be put into any projects. Mayor Burroughs asked about the traffic signal category. Langley stated that those were intersections that were in need of a signal. Assistant City Manager Martin stated that a supplemental package had 10-12 signals that were ranked high and that would be funded through TxDOT. The City would put in temporary signals until TxDOT put in the final signalization. Other signals that were needed were at Brinker and Colorado and funding could be used for those types of intersections. Council Member Gregory stated that he had looked at the bike plan from the Mobility Committee and at the cost for immediate term and short term projects. Low to high estimates indicated immediate term funding from approximately $663,000 - $1.2 million. If the whole eight year project was looked at in terms of low and high estimates, the average was $262,000 per year to implement the bike plan. Those figures did not include all of the elements of the plan. $50,000 was already in the budget versus $262,000 which was needed per year to implement the plan. He felt that if $200,000 was added to the $50,000 were might be some CIP projects that could provide some relief for the regular budget. He felt Council should pay attention to recommendations when a study was done or don't do the study. Council Member Roden stated that the qualification costs did not include engineering, right-of- way, or a bike plan coordinator. He questioned why those costs were not included and how much those would add to the estimates. Coulter stated that in many cases it was not known if right-of-way would be needed. If right-of- way had to be purchased, costs would be very high. Engineering costs would be different for each project which was why they were not included. Council Member Gregory questioned if the funding only addressed the actual changes in facilities and not funding for a bike coordinator. Coulter stated that there funding amounts designated for certain projects such as Sycamore to Elm which was the cost for the project. Signals were not included in the amount. Council Member Engelbrecht felt that something needed to be done in regards to the bile plan. Mayor Burroughs felt it would be beneficial to identify which elements were the highest priority and could be implemented quickly. His priority would be to connect the universities to the City of Denton City Council Minutes August 16, 2011 Page 5 Downtown and the Transit Center. He felt that was the highest priority for him but funding was not there. Mayor Pro Tem Kamp agreed and felt that Council had neglected this for a long time. She indicated that the Mobility Committee was looking to set a list of priorities. Council Member Gregory suggested earmarking the money now but not spend any until the plan moved from draft to an approved program and then prioritize the projects. Earmark the money so when that happened, the money would be available. Council Member Roden stated that it would help him to see the various price tags on a graph for the various projects so he would know what was needed for investment in the various projects. Mayor Burroughs suggested putting it as a separate item in the budget so Council could consider the funding more specifically at a later date. He felt that allocating the money now would just be picking a number without specifics. The general topics were important but not the specifics at this point. Langley stated that he was hearing that Council preferred the second five-year forecast which allocated 100% of the franchise fee and appropriate the $333,000 as a lump sum for Council initiated projects and bring back to Council as needed. Council Member Gregory asked if there was going to be a discussion of the Downtown Incentive Grant program as part of this budget cycle or wait for a recommendation from the Downtown Task Force. Mayor Burroughs suggested waiting until the next budget year. Council Member Gregory stated that then in the meantime, after consideration of this budget, anymore requests going through the system would be put on hold until deliberations were finished regarding the target figures. City Manager Campbell stated that the 2011-12 budget had same amounts in the budget. Assistant City Manager Fortune stated that all of the allocations were done for this year but that there were several applications in process. Council Member Gregory stated that he was suggesting holding off applications until Council had a discussion on how to proceed. 4. Receive a report, hold a discussion and give staff direction regarding an Interlocal Agreement between the City of Denton and Denton County Transportation Authority (DCTA) for maintenance and repair of DCTA’s fleet of vehicles. Mike Ellis, Fleet Superintendent, presented details on interlocal agreement. He stated that staff had discussed potential fleet maintenance opportunities with Council on April 5, 2011 that might exist between DCTA and the City. The City’s LINK Bus operations relocated to the Landfill in 2004 with approximately 40 buses, 3 light vehicles and 80 employees. DCTA had since taken City of Denton City Council Minutes August 16, 2011 Page 6 over this operation. DCTA had extended their lease and expanded their operation at the Landfill with approximately 75 buses, 10 light vehicles and more than 120 employees. Issue - Solid Waste needed to relocate bus parking to develop the Landfill and would need to use facilities currently occupied by DCTA. The current DCTA-Solid Waste lease was month to month. DCTA and City staff had discussed the partnership for vehicle maintenance. DCTA currently outsourced Fleet Maintenance to a private operation and partnered with the City for fueling services. A service level agreement was in the process of being drafted. Partnership Benefits - Economics of scale could be realized by providing DCTA fleet maintenance services. This would allow DCTA to focus on bus operations instead of maintenance activities and may provide DCTA additional capacity for operations. There was the possibility of consolidation of public infrastructure and operations which may reduce the need for multiple maintenance facilities in the community. Discussion Points - To accommodate DCTA Fleet needs, the issues under consideration included (1) the addition of a 3rd shirt for fleet operations, (2) the addition of 9 full-time employees by the end of 2012, (3) the transfer of existing DCTA contractor's staff to the City, (4) the expansion of Service Center operations, and (5) DCTA would fund all operational costs incurred by the City. Outstanding items to be addressed were: (1) DCTA bus and vehicle parking, (2) future capital expense of approximately $689,000, (3) most capital costs to be covered by DCTA with some consideration for enhancements that would benefit municipal operations, (4) if the Service Center was expanded, Ruddell realignment, rail crossings and traffic patterns would need to be examined, and (5) zoning issues would also need to be considered. Proposed contract specifics included a 7-10 year term which was still in discussion; dedicated technicians for DCTA equipment; proposed total contract value of $1.6 million; budget authority for $450,000 FTA equipment grant; $75/hour rate on an as needed basis for additional service on heavy duty vehicles; and $65/hour rate on any light duty vehicle. Summary – the proposal would include (1) the addition of 9 full-time employees, (2) would have benefits of economics of scale, (3) a shared use facility, (4) would further enhance the City’s partnership with DCTA, (5) a negotiated preliminary fleet maintenance agreement with DCTA in the amount of $1.6 million, and (6) a capital development and cost sharing agreement. Staff was asking for Council direction on the general terms of the proposed agreement. DCTA was also seeking board direction on the general terms of proposed agreement. Mayor Burroughs felt that there was no problem with the concept and questioned if this a good business decision for the city. Ellis replied that it would be good for the City. Mayor Burroughs asked what would happened to the full-time employees and the capital improvements at the end of the 7 year agreement. City of Denton City Council Minutes August 16, 2011 Page 7 Ellis stated that the full-time employees were tied to the contract so there would have to be a reduction in force process. In terms of the capital improvements, the City was moving in that direction any way so they would not be a waste. Council Member Roden asked if the 25 buses included just Denton buses or others. Ellis stated that this was DCTA’s entire fleet. Council Member Roden asked if it included the UNT shuttle. Ellis replied correct. Council Member Roden asked if UNT was paying for servicing of the shuttle buses. Ellis stated that there was a contract between UNT and DCTA for those buses. Council Member Roden asked if the larger projected property was already owned by the City. Ellis stated that it was and that it had a rental house on it with the rest of the property vacant. Council Member Roden stated that there was a large neighborhood in that area that already had to deal with the City's service center. He questioned if an environmental impact study had been done on the quality of life in the neighborhood. Ellis stated no and that DCTA had another piece of property off Shady Shores but they were not interested in using that property. The thought was that there already was municipal activity in this location and to consolidate it in that area rather than develop another location which would lessen the impact on citizens. Council Member Roden asked if the neighborhood had been contacted regarding the proposal. Ellis stated that it had not been done at this point. Council Member Roden asked if it would be done in the future. Ellis stated that some rezoning of the property would be required and at that point the neighborhood would be contacted. City Manager Campbell stated that the DCTA Board was also considering this proposal and staff was working on getting general feedback from them on the plan. After that feedback was received from the Council and the DCTA Board regarding the concept that would be the appropriate time to publicize and get information out to the community. Council Member Gregory indicated that he was comfortable with the direction of the proposal. He questioned the cost for the realignment of the road and questioned if that part of the plan was already in the works. City of Denton City Council Minutes August 16, 2011 Page 8 Assistant City Manager Martin stated that a facility plan done several years ago talked about the realignment of Ruddell. It was not currently in the capital budget but was planned. He indicated that when Ruddell was realigned, two other railroad crossings at Willowwood and Pertain would have to be given up. Council Member Engelbrecht asked if the costs included buffering along the homes in the parking lot. Ellis stated that there was fencing tied to the project. Council Member Engelbrecht indicated that he would asking for buffering in the future plans. Council Member Roden suggested looking at other places to put the bus barn if there was some flexibility in the sites. 5. Receive a report, hold a discussion, and give staff direction regarding the Solid Waste and Recycling Services overview of the department strategic plan with additional detail the amendment of the facility permit to accommodate expanding services. Vance Kemler, Director of Solid Waste, presented details on the Solid Waste Strategic Plan. Council had established five key focus areas one of which was “sustainable economic development and environmental stewardship”. That key area was formatted into the Solid Waste Strategic Plan. He reviewed the history of the 20 year Master Plan that was developed in 1995. Factors in that plan included cost, flexibility, economic development opportunities, risk, educational opportunities, and environmental stewardship. The 1999 Solid Waste services and goals were included in the Denton Comprehensive Plan and included (1) protect public health, (2) protect the environment and (3) encourage waste minimization and maximize material recovery and reuses. The first area of the plan included organizational excellence to utilize technology to enhance efficiency and productivity. The second major area was to promote superior utility services and facilities that included amending the MSW facility permit to provide greater than 50 years of service capacity and accommodate the solid waste and recycling services needs of the community. The third area was sustainable economic development and environmental stewardship. Tasks under that area were to obtain Council's goal of 40% diversion of waste from the traditional landfill. Mayor Burroughs asked about commercial recycling and questioned if some developments had separate contracts with other entities. Kemler stated correct. Mayor Burroughs asked if that was considered in the 40% reduction figure. Kemler stated that only those associated with the City were considered. Mayor Burroughs asked if there were provisions for new multi-family developments to have recycling facilities or space for such facilities. City of Denton City Council Minutes August 16, 2011 Page 9 Kemler stated that new facilities would have to have provisions to accommodate recycling in the future. He continued with the fourth area of the plan which dealt with a safe, livable and family friendly community. That area would seek clean and healthy neighborhoods in the city. The fifth area was partnerships and regional leadership. Solid Waste had a major project with UTA School of Engineering and UNT Environmental Services. A major project for Solid Waste was the facility expansion. Currently the Landfill was on a 250 permitted area and staff would like to expand the area by 250 acres to the north. Municipal Solid Waste Permits - currently the City had a Type 1 Municipal Solid Waste permit which was the highest level of permit issued by TCEQ for MSW facilities. Denton was one of two facilities in the State that could operate an enhanced leachate recirculation facility. Kemler reviewed a feasibility study done in 2008 to make sure the expansion would meet state and federal requirements. In May 2011 legal and engineering consultants were to develop a soil boring plan. Phase 2 of the permit amendment would include engineering and geotechnical tasks. A master planned industrial facility would be developed through the Planning and Zoning Commission for special use permits. It would also have to secure Corps of Engineers approval. Council Member Engelbrecht suggested a pilot project to put trash carts on one side of street and recycling on other side to avoid trucks having to make so many trips on the streets. Mayor Burroughs indicated that Council would be going into Closed Session and would consider Work Session Item #6 later in the meeting. The City Council convened in a Closed Meeting at 4:50 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric (“DME”) for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. B. Consultation with Attorneys – Under Texas Government Code Section 551.071. 1. Consult with, and provide direction to, City’s attorneys on legal rights, restrictions, obligations, and issues associated with the proposed annexation of DH-7, DH-9, and DH-12, where a public discussion of such legal matters would conflict with the duty of the City’s attorneys to the City of Denton, Texas under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, and where such matters may become an issue in potential litigation. City of Denton City Council Minutes August 16, 2011 Page 10 2. Consultation, discussion, deliberation, and receipt of information from the City’s attorneys regarding potential litigation with Denton County Electric Cooperative, Inc. d/b/a CoServ Electric and CoServ Gas, Ltd. relating to disputes concerning franchise issues, where public discussion of these legal matters would clearly conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. C. Deliberations regarding consultation with the City Attorney – Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations – Under Texas Government Code Section 551.087. 1. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding granting economic development incentives to a property owner for the purpose of redeveloping a major retail facility in the City of Denton, located at Loop 288 and I-35E. This discussion shall include commercial and financial information the City Council has received from the property owner which the City Council seeks to have the property redeveloped in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives. Council convened back into the Work Session at 5:50 p.m. and considered Work Session Item #6. 6. Receive a report, hold a discussion, and give staff direction on the execution of a contract for Professional Services for Wallace Roberts and Todd to serve as the consultant on the update to the City of Denton Comprehensive Plan. Brian Lockley, Development Review Administrator, presented details of the contract. In February 2010 Council directed staff to proceed with an update of the Denton Development Plan. In April 2011, a request for qualifications was issued seeking qualified professionals with considerable experience in citizen involvement, citizen participation, planning, land use, and sustainability to develop an update to the Comprehensive Plan. Five proposals were submitted with staff interviewing three of those firms. Following interviews with those three firms, panel members ranked the interviews. The proposed firm had done other similar projects and would partner with three other firms to assist them with the project. Staff was requesting direction from Council on how to proceed. An actual figure for the project was not yet determined but $800,000 had been set aside for the project. Mayor Burroughs asked about the cost for the original Denton Plan. Bryan Langley, Chief Financial Officer, stated that it was between $250,000-300,000 with staff doing much of the work. City of Denton City Council Minutes August 16, 2011 Page 11 Council Member Gregory stated that his only concern was the negotiation aspect. Since a figure was already set aside for the project, he was concerned that the negotiations would work up to that number. Council Member Roden asked about trying to do the rewrite in-house as an amendment to the current plan. Assistant City Manager Greene stated City staff had the talent to do the rewrite but the problem was objectivity from an outside perspective to apply to the City. Council Member Roden stated that there was a lot of citizen participation in the last process and was concerned that there might not be enough citizen input based with a consultant. Greene stated that staff was looking for the same amount of citizen involvement with the rewrite as with the original plan. Mayor Burroughs stated that with the prior task, the consultant had direction on what to follow but staff implemented it. Council direction was to proceed in the negotiation process. Council convened in a Regular Meeting at 6:30 p.m. in the Council Chambers. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Presentation of 2011 National City Water Taste Test Competition Award Mayor Burroughs presented the award to Randy Markham of the Water Department. 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Caleb O’Rear regarding Smoke Free Denton. Mr. O'Rear presented information concerning a smoke free Denton. He felt Denton was still behind by allowing smoking in restaurants and other buildings. He was the CEO of Presbyterian Hospital and they had gone to a smoke free facility. He encouraged the Council to address the issue of a smoke free Denton and felt this would be an excellent topic for a Council Work Session. City of Denton City Council Minutes August 16, 2011 Page 12 4. CONSENT AGENDA Mayor Burroughs stated that Items M and N would be considered separately. Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Items M and N. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Roden “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Resolution No. 2011-029 A. Consider approval of a resolution of the City of Denton approving a modification to the stipulation made a part of the settlement agreement between the Alliance of Oncor Cities (“AOC”) and Oncor Electric Delivery Company LLC (“Oncor” or “Company”) regarding the Company’s statement of intent to change electric rates in all cities exercising original jurisdiction; determining that this resolution was passed in accordance with the requirements of the Texas Open Meeting Act; repealing any prior resolutions inconsistent with this resolution; requiring delivery of this resolution to the Company and Legal Counsel; and declaring an effective date. Resolution No. 2011-030 B. Consider approval of a resolution of the City Council of the City of Denton, Texas, (“City”) approving a settlement between Atmos Energy Corp’s Mid-Tex Division and Atmos Texas Municipalities (“ATM”) resulting in no change in base rates and approving tariffs which reflect costs related to the Steel Pipe Replacement Program; finding the rates set by the attached tariffs to be just and reasonable; requiring delivery of the resolution to the company and legal counsel; determining that the meeting at which this resolution was approved complied with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. Resolution No. R2011-031 C. Consider approval of a resolution allowing the Black Chamber of Commerce to be the sole participant allowed to sell alcoholic beverages at the Blues Festival on September 17 - 18, 2011, 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. The Parks, Recreation and Beautification Board recommends approval (5-0). Approved the noise exception request listed below. D. Consider a request for an exception to the Noise Ordinance for the purpose of the 13th Annual Denton Blues Festival, sponsored by the Denton Black Chamber of Commerce. The event will be held in Quakertown Park on Saturday, September 17, 2011, from 1:00 p.m. to 10:30 p.m. and Sunday, September 18, 2011, from 1:00 p.m. to 8:30 p.m. The exception is specifically requested to increase hours of operation for amplified sound on Saturday from 10:00 p.m. until 10:30 p.m. City of Denton City Council Minutes August 16, 2011 Page 13 and for amplified sound on Sunday. The amplified sound will not go above the allowable 70 decibels for an outdoor concert. Resolution No. R2011-032 E. Consider approval of a resolution voting for a member to the Board of Managers of the Denco Area 9-1-1 District; and declaring an effective date. Ordinance No. 2011-126 F. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Ed Canada, owner of 207 N. Elm Street, from the Downtown Incentive Grant Program not to exceed $10,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (6-0). Ordinance No. 2011-127 G. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving Bylaws for Tax Increment Reinvestment Zone Number 1 (Downtown TIF). The TIF Board recommends approval (7-0). Ordinance No. 2011-128 H. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving the Project Plan for Tax Increment Reinvestment Zone Number 1 (Downtown TIF). The TIF Board recommends approval (7-0). Ordinance No. 2011-129 I. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving the Finance and Feasibility Plan for Tax Increment Reinvestment Zone Number 1 (Downtown TIF). The TIF Board recommends approval (7-0). Ordinance No. 2011-130 J. Consider adoption of an ordinance authorizing the City Manager to execute an agreement between the City of Denton and CareHere, LLC; approving the expenditure of funds; and providing for an effective date. Ordinance No. 2011-131 K. Consider adoption of an ordinance of the City of Denton approving a Lease Agreement between the City of Denton and Columbia Medical Center of Denton Subsidiary, L.P. d/b/a Denton Regional Medical Center for the City of Denton’s Health Center in the Denton Regional Medical Center Professional Building; authorizing the expenditure of funds therefor; and providing an effective date. Ordinance No. 2011-132 L. Consider adoption of an ordinance of the City of Denton, Texas amending certain provisions of Chapter 17 of the Denton Code of Ordinances, the Denton Property Maintenance Code, including Sections 17-2, 17-35, 17-40, 17-60, 17-153 and 17- 154; providing a severability clause; and providing an effective date. City of Denton City Council Minutes August 16, 2011 Page 14 Item M was considered. Ordinance No. 2011-133 M. Consider adoption of an ordinance establishing an economic development program under Chapter 380 of the Local Government Code for making grants of public money to promote economic development and to stimulate business activity in the City of Denton; approving an agreement with GTM Development, Ltd., regarding the purchase of Golden Triangle Mall and renovation and improvement of an approximate 73.2 acre parcel of land commonly known as Golden Triangle Mall generally located at the northwest corner of I-35 E. West and East Loop 288 in Denton, Texas; authorizing the expenditure of funds therefore; and providing an effective date. Linda Ratliff, Director of Economic Development, presented details of the agreement. Staff had been working with GTM Development since April 2011 regarding a possible Chapter 380 Economic Development Program Grant Agreement. Under the agreement, GTM would purchase Golden Triangle Mall from Chase Bank, renovate or cause renovation of existing properties within the boundaries of the project, construct or cause the construction of new space within the mall proper and/or pad sites, and invest or cause investment of $45-50 million. She reviewed the required investment by GTM, eligible costs, grant payments, agreement terms, and loss of retailers. The grant represented a 20-year agreement to share 50% of the increase in sales tax generated by the project. The total amount of grant payments would be established on October 1, 2014 when the Required Investment must be completed. A minimum Required Investment of $45 million would result in a $7.12 million total incentive. Grant payments would cease at 20 years or $9.5 million, whichever came first. If the minimum Required Investment of $45 million was not reached by October 1, 2014, the agreement would be terminated and grant payments would cease. Mayor Pro Tem Kamp stated that the tax dollars did not come from taxes from residences but rather were incremental sales tax that the property would earn itself. Ratliff stated correct that this development group had many successes in the past with other malls. This was a performance based agreement and would have to produce to receive any funding. Council Member Roden asked about how a representative from the company saw the mall in the future. Gar Herring, GTM Development, stated that the vision for the mall was something better than currently located at the mall. This was the best property in the City but had been ignored for many years and stores had not been remodeled. A lot of the new vision was to remodel the sites inside the mall. The plan was to budget enough money to remodel the stores with additional plans to add significant food at the location and better choices of food. They wanted to make the mall more of a destination. That would include more glass, color and more signage. They were working with the department stores to renovate the inside and outside to make the stores brighter and to provide more choices in the department stores with better merchandise. The goal was to keep shoppers in Denton. They would also like to add another entertainment component to the mall. City of Denton City Council Minutes August 16, 2011 Page 15 Council Member Gregory stated that the developer was making a significant investment in the property and betting that the investment would generate increased sales. Herring stated correct and if it didn’t work, they would not receive any incentives. Council Member King motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Roden “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimous Item N was considered. Ordinance No. 2011-134 N. Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute for and on behalf of the City of Denton, Texas (the “City”) an Easement Encroachment Agreement (the “Agreement”), by and between the City and the University of North Texas (“UNT”), regarding the encroachment by UNT upon a Drainage Basin Easement owned by the City, encumbering an approximate 5.297 acre tract of land, more or less, located in the E. Pulchalski Survey, Abstract Number 996 and the A.N.B. Tompkins Survey, Abstract No. 11246, generally located at 1251 South Bonnie Brae Street, City of Denton, Denton County, Texas; providing for termination of ordinance and agreement upon failure of UNT to approve and execute the agreement, and providing an effective date. The Public Utilities Board recommends approval (5-0). Council Members Roden and Gregory left the meeting with conflicts of interest. City Attorney Burgess reminded Council that a motion should include the substitute document as presented by the Legal Department. Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to adopt the amended ordinance as presented by Council. On roll call vote, Council Member King "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Council Members Roden and Gregory returned to the meeting. 5. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2011-135 A. Consider adoption of an ordinance adopting a Service Plan for an area of land to be annexed to the City of Denton, Texas, pursuant to an annexation plan, generally identified as DH-7 consisting of approximately 143 acres located on the east and north sides of Teasley Lane, south of Teasley Harbor subdivision and west of Southlake Drive, and more specifically identified and depicted in Exhibit “A” attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas; providing a savings clause; and providing an effective date. City of Denton City Council Minutes August 16, 2011 Page 16 Jon Fortune, Assistant City Manager, indicated that he would present information for Items 5 A, B and C. In 2009 staff recommended the annexation of 18 areas of land in the City’s extraterritorial jurisdiction. Of the 18 areas identified, all but three areas were exempted from the 3-year annexation plan requirement under Section 43.025 of the Texas Local Government Code. These three areas were placed in a 3-year Annexation plan and were identified as DH-7, DH-9 and DH-12. The three year annexation processes started in April 2010 with three public hearings and one Planning and Zoning Commission work session. The next step was negotiation for services which included city and property owners required to negotiate. The Denton County Commissioners appointed five representatives for each DH to negotiate. Negotiation meetings were held between July 11th and August 15th. He reviewed the negotiation process for each of the areas and the provisions that were necessary to be included. The DH-7 Service Plan negotiated items included (1) offering non-annexation agreements to eligible property owners for a term of seven years; (2) offering one property to maintain private solid waste provider contract through July 2016; and (3) offering one property owner to receive one residential water and wastewater tap and to pay associated fees. DH-9 Service Plan negotiated items included (1) non-annexation agreements to eligible property owners for a term of seven years; (2) construction of a sidewalk along portions of Swisher Road; (3) installation of temporary traffic calming devices on Swisher near the school; (4) allow private water service taps with conditions for one property owners; (5) wastewater line extensions along Shiloh and Swisher Roads based on a shared cost approach between property owners and City; (6) parking restrictions along Edwards Road; and (7) future access to water and wastewater service and water service to the Green Tree Estates sub-division. Signed agreements had been received from DH-7 and DH-9. In regards to DH-12, the Committee did not accept the service plan including the City's original plan and including a plan with additional services offered by the City. In addition, the DH-12 Committee sought a level of services not acceptable to the City. Staff was recommending approval of the original service plan and the DH-12 Committee was willing to continue discussion of the service plan. Staff was recommending adoption the DH-12 service plan with consideration of future dialog on the plan which could be amended in the future. A motion by Council should include a substitute ordinance for Item 5B. Council Member Gregory motioned, Council Member King seconded to adopt the ordinance for Item 5A, the substitute ordinance for Item 5B and the ordinance for Item 5C. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Roden “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Ordinance No. 2011-136 B. Consider adoption of an ordinance adopting a Service Plan for an area of land to be annexed to the City of Denton, Texas, pursuant to an annexation plan, generally identified as DH-9 consisting of approximately 298 acres located north of Pockrus Page Road, and north, south and northeast of Edwards Road, and more specifically identified and depicted in Exhibit “A” attached hereto, which area is City of Denton City Council Minutes August 16, 2011 Page 17 adjacent to and abuts the existing city limits of the City of Denton, Texas; providing a savings clause; and providing an effective date. Discussion and vote of this item was done under Item 5A. C. Consider adoption of an ordinance adopting a Service Plan for an area of land to be annexed to the City of Denton, Texas, pursuant to an annexation plan, generally identified as DH-12 consisting of approximately 1,167 acres located south of east University Drive, east of north Mayhill Road, north and south of Blagg Road, north and south of Mills Road and east and west of south Trinity Road, and more specifically identified and depicted in Exhibit “A” attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas; providing a savings clause; and providing an effective date. Discussion and vote of this item was done under Item 5A. D. Consider nominations/appointments to the City’s boards and commissions. 1. Animal Shelter Advisory Committee 2. Community Development Advisory Committee 3. Health & Building Standards Commission 4. Historic Landmark Commission 5. Public Art Committee 6. Zoning Board of Adjustment Mayor Burroughs nominated Sally Cavness for the Animal Shelter Advisory Committee, Mayor Pro Tem Kamp nominated Patti Haworth to the Historic Landmark Commission, and Council Member Roden nominated John Murphy to the Traffic Safety Commission. Council Member King motioned, Council Member Roden seconded to approve the nominations. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Roden “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously Ordinance No. 2011-138 E. Consider adoption of an ordinance establishing a resident only parking program in a portion of the Denia Neighborhood to address hazardous conditions caused by adjacent uses and to protect the residents of this neighborhood from harmful conditions and promote the health, safety and welfare of the residents of this neighborhood; and establishing an effective date. Captain Roger White, Denton Police Department, presented the details of the proposal. The proposed ordinance would establish a resident only parking program for a portion of the Denia neighborhood. The new football stadium for UNT had caused concern among residents for parking on game days. The proposed ordinance included Laurelhills and would prevent non- residents from parking in the area on game days. Signs would be posted for resident parking only and towing would be in effect. There would be a $5 fee for resident only parking permits for residents to park on the street with temporary passes available. The no parking signs were City of Denton City Council Minutes August 16, 2011 Page 18 temporary and would be put up and taken down by Denton police officers. Estimated costs were $4300 for the signs, $900 to design and purchase the parking permits and $1500 for police staff. Mayor Burroughs stated that the intent was to do everything to not haul away vehicles but to communicate to the owner of vehicle if no hang tag was visible. White replied yes but to have an ordinance with teeth there was the necessity to be able to tow. Council Member King motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Council Member Roden “aye”, Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 6. PUBLIC HEARINGS A. Hold a public hearing to receive comments from the public regarding proposed redistricting Illustrative Plans concerning proposed new boundaries for City of Denton councilmember districts and provide staff direction regarding such plans. Mayor Burroughs indicated that this item was only to receive public input and that no Council action would be taken at this meeting. City Attorney Burgess stated that there had been three Council work sessions, individual discussions with each individual council member, a published notice of hearing in the paper and redistricting materials available outside the Council Chambers as well as on the city’s website and articles in the Denton newspaper. Why Redistrict? Council had 4 single member districts and 3 members elected at-large. After the census, the city was required by law to determine whether its council member districts were within the legally required population balance; whether the population in each of the districts was relatively equal. The districts could not be out of population balance by more than 10% overall from the most populous to the least populous district. It had been determined, based on the census, that the districts were out of balance and the City must re-draw district lines in order to meet the required 10% population deviation limit. Population Balance Requirements – the ideal district was determined by dividing the new total population reported in the 2010 census by the number of council districts. The ideal number was 28,445 persons per district. The deviation was calculated by comparing the actual population to the ideal population to determine how much each current district was over or under populated. Currently District 4 was over populated by 37.51% over the ideal size and District 3 was 22.14% under populated compared to the ideal size. Denton's total population deviation was 59.66% which exceed the 10% standard. Burgess presented information on the initial assessment and benchmark which was the starting point for the assessment. Legal Requirements for Redistricting included (1) population balance, (2) Section 2 of the Voting Rights Act which indicated that any new redistricting plan could not unreasonably discriminate against minority voters by packing or cracking, (3) Section 5 of the Voting Rights Act which indicated that new redistricting plans must be cleared through the Department of City of Denton City Council Minutes August 16, 2011 Page 19 Justice to determine if the plan was retrogressive to minority voting strength plus the plan could not dilute the voting strength of minority voters to a greater degree than otherwise could be reasonably avoided in achieving population balance, (4) Shaw v Reno which limited the use of race as the predominant basis for redistricting decisions, except to satisfy Sections 2 and 5 of the Voting Rights Act and restricted race-based gerrymandering and the drawing of bizarrely shaped districts. Redistricting Criteria - on April 19, 2011 Council adopted certain redistricting criteria to aid the City in developing redistricting plans and for setting standards for plans. These criteria included the standards of: (1) where possible, easily identifiable geographic boundaries should be followed, (2) communities of interest should be maintained in a single-district where possible and attempts should be made to avoid splitting neighborhoods, (3) to the extent possible, districts should be composed of whole voting precincts and where this was not possible or practicable, districts should be drawn in a way that permitted the creation of practical voting precincts and that ensured that adequate facilities for polling places existed in each voting precincts, (4) although it was recognized that existing districts would have to be altered to reflect new population distribution, any redistricting plan should, to the extent possible, be based on existing districts, (5) districts must be configured so that they were relatively equal in total population according to the 2010 Federal census and in no event should the total deviation between the largest and the smallest district exceed 10%, (6) districts should be compact and composed of contiguous territory and compactness may contain a functional, as well as a geographical dimension, (7) consideration may be given to the preservation of incumbent-constituency relations by recognition of the residence of incumbents and their history in representing certain areas, (8) the plan should be narrowly tailored to avoid retrogression as defined in the Voting Rights Act and (9) the plan should not fragment geographically compact minority community or pack minority voters. Guidelines for Redistricting Proposals - on April 19, 2011 Council also adopted certain guidelines for persons submitting comments and proposals. Those included (1) plans should be in writing, (2) the plan should show total population and voting age population for Blacks, Hispanics, Asians, and Anglo/other for each proposed City Council district based on the 2010 Census data (3) plans should redistrict the entire city, (4) the plan should conform to the criteria as set by Council, (5) comments must be submitted in writing and be legible, even if the person makes comments orally at a public hearing, (6) persons providing comments and those submitting proposed plans must identify themselves by full name and home address and provide a phone number and, if available, an email address, and (7) all comments must be submitted to the Council by the close of the public hearing. Burgess stated that two plans were being presented at this meeting. Both plans had been reviewed the Planning Department, the City Attorney’s Office, and the outside consultant. The plans met all criteria noted. District 4 had been reduced, District 3 enlarged, District 1 had no retrogression and District 2 had changed some. Plan C was within the 10% allowed deviation and also protected more minority voters in District 1. After comments from the Denia neighborhood relative to the splitting of that neighborhood, the consultants drew Illustrative Plan 1 Revised which rejoined the Denia neighborhood. She reviewed the numbers of this revised plan that had a maximum deviation of 9.14%. City of Denton City Council Minutes August 16, 2011 Page 20 Future actions – After the public hearing this evening, staff would review the public comments and adapt the redistricting plan as necessary. The redistricting plan was scheduled to be adopted by Council on September 20, 2011. A Department of Justice submission would be prepared after that and the May 2010 city council candidate election would be the first election under the new council district plan assuming Justice agreed with the plan. Mayor Pro Tem Kamp stated that on Map C, Tremont was also left out and asked if it was now included. Burgess replied correct. Council Member Gregory asked what was the west side boundary of District 2. Burgess replied that it was Hinkle. Council Member Roden felt that once the plan was finally adopted and Justice reviewed the plan, it would be worthwhile to identify the areas of the city that shifted direction and address that to citizens. It would be important to think ahead of that education process and how to do that in general for citizens on how to know where the districts were. Burgess stated that staff would work on that process as well as the Denton Record-Chronicle and the City’s website. Council Member Roden indicated that he was worried that the redistricting was based on current population and the current census. Some areas of the city were growing and some were not growing. Two areas already ahead were Districts 3 and 4 which were projected to grow in the next five years. Burgess indicated that Justice did not look at an anticipatory position. They looked at a snap shot in time and determined if it met the legal requirements. It was recognized that some growth would happen in the City such as the proposed annexations in the future. However, the annexation numbers were not substantial and did not unbalance the districts. Annexations were also submitted to the Department of Justice for clearance. The issue could be looked at again in two years at which time redistricting might have to be considered again. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Carolyn Phillips, 901 Baldwin, Denton, 76205 - expressed concern that the Downtown area was removed from District1 Valorie Thorton, 2030 Golf Court, Denton, 76205- use the plan that keeps the Denia neighborhood in one district Linnie McAdams, 1120 Kendolph, Denton, 76205–keep all of the Denia area in District 4 Gerry Veeder, 1721 Wisteria, Denton, 76205 - thanked Council about responding to concerns about keeping her neighborhood in the revised plan Alice Gore, 2215 Westwood, Denton, 76205 - thanked Council for the revised plan City of Denton City Council Minutes August 16, 2011 Page 21 Charlye Heggins, 1606 East McKinney, Denton, 76209 – concerned about taking Downtown out of District 1. Dana Zoltner, 610 Emery, Denton, 76201 - concerned about the finger going down out of District 2. Roberto Calderon, 1620 Churchill, Denton, 76209 - urged serious consideration of a broader public process than what was allowed in this moment. Hatice Salih, 300 Northridge, Denton, 76201 - concerns about the finger in District 2 and District 1 was completely landlocked by other districts. Mayor Burroughs indicated that Comment Cards had been received from Sarah Bryant, Scooter Thornton and Christopher Walker. Bob Clifton, 1800 Morse, Denton, 76201 - the map needed to be on display to determine the streets and had concerns about how the lines were drawn. The Mayor closed the public hearing. No action was taken by Council at this meeting. 7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council Member Roden announced that Southeast Denton received 1000+ backpacks for its Back-to-School event. Council Member Gregory requested an informal staff report regarding a notice that Oncor would be holding a discussion enlarging its transmission line through the north part of town through the Greenbelt. He suggested a staff report and discussion in a Work Session on how the line might impact neighborhoods and alternatives Oncor might take. Council Member Watts requested an informal staff report for a future work session on a possible ordinance for bike lights and reflectors above State requirements. Council Member Gregory suggested receiving citizen input on what to call people from Denton. City of Denton City Council Minutes August 16, 2011 Page 22 Mayor Burroughs asked staff to look into the possibility getting the redistricting program in order to help citizens manipulate streets for a different versions. Council Member Gregory requested staff take one more look at the redistricting map in regards to the District 2 finger and not have such an odd looking shape without dividing neighborhoods. Council Member Engelbrecht suggested having the consultant available to help the public with possible different redistricting lines. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. C. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action taken on Closed Meeting items. With no further business, the meeting was adjourned at 8:30 p.m. _________________________________ MARK BURROUGHS MAYOR CITY OF DENTON, TEXAS __________________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE : September 20, 2011 DEPARTMENT : Utilities Administration ACM: Howard Martin, 349-8232 SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas authorizing the filing of a grant application with the United States Environmental Protection Agency for a Brownfield Assessment Grant in the amount of $200,000; and providing for an effective date. BACKGROUND The United States Environmental Protection Agency’s (USEPA) defines a brownfield as a “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant”. The USEPA Brownfields Program is designed to help states, communities, and other stakeholders work together to prevent, assess, safely clean up, and sustainably reuse brownfields. The USEPA provides technical and financial assistance for brownfields based on four main goals: protecting human health and the environment, sustaining reuse, promoting partnerships, and strengthening the marketplace. Brownfields grants support these goals by funding environmental assessment, cleanup, and job training activities. Assessment grants provide funding for brownfields inventories, planning, environmental assessments, and community outreach. The resolution provided as Exhibit 1 specifies the City of Denton’s intention to apply for a “community assessment grant”. If successfully awarded, this grant will provide $200,000 for performing brownfield assessments on a community scale. The intention of the grant is to provide the funding needed to complete up to 20 Phase I Environmental Site Assessments (ESAs) and 3-4 Phase II ESAs for properties located predominantly, although not exclusively, in the Downtown Implementation Plan (DTIP) area and the Central Business District. The grant will also provide the funding needed to produce a Brownfields Assessment and Redevelopment Plan. Using the recommendations of the Brownfield Assessment and Redevelopment plan, a smaller, targeted Brownfield Assessment and Redevelopment Guidance Document will be produced for use by the development community. The activities and actions specified in this grant are intended to help remove redevelopment barriers by providing funding for environmental site assessments and providing tools for developers and property owners to understand redevelopment options. OPTIONS 1. Recommend approval of the resolution supporting the grant application. 2. Do not recommend approval of the resolution supporting the grant application. 3. Direct staff to provide additional information. RECOMMENDATION Staff recommends Option 1, approval of the resolution supporting the grant application. FISCAL INFORMATION Staff is proposing to seek the maximum amount of funding for a Community Wide Assessment Grant, which is $200,000. Assessment grants are not required to have matching local funds. This grant requires quarterly USEPA reporting, annual reporting, and overall grant administration. The grant budget provides funds to partially offset the staff resources needed to administer these components of the grant. EXHIBITS 1. Resolution Respectfully prepared and submitted by, Kenneth Banks. Director, Environmental Services and Sustainability AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Police ACM: Fred Greene SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, amending Chapter 21 of the Code of Ordinances by adding Article IV, Sections 21-60 through 21-65, making it unlawful for certain sex offenders to reside within 1,500 feet of premises where children gather; providing that a culpable mental state is not required for committing an offense under this article of the City of Denton Code of Ordinances; providing for affirmative defenses; providing a repealing clause; providing a savings clause; providing a severability clause; providing for penalty of fine not to exceed five hundred dollars ($500.00); and providing for an effective date. BACKGROUND In an effort to protect children from sexual abuse a number of area cities have enacted ordinances which restrict where sex offenders who were convicted of offenses against children may lawfully reside. These laws usually prohibit registered sex offenders who victimized children from living near where children may gather, such as schools or parks. The purpose of sex offender residency laws is to create child safety zones in which registered sex offenders do not live, thereby reducing the risk that they might have the opportunity to victimize children. The City of Denton currently does not have an ordinance regulating the residency of sex offenders. Over the last several months, members of the community, other criminal justice agencies, and school district officials have expressed strong interest in adopting an ordinance to create so-called child safety zones within the city. One hundred thirty-two (132) convicted sex offenders are registered with the State under Denton addresses. These offenders were convicted of various sexual offenses and the ages of their victims range from early childhood through late adulthood. The police department conducts compliance visits with offenders in order to confirm that they reside at their registered addresses. In Denton, convicted sex offenders are free to establish a residence anywhere unless they are on probation or parole. Those offenders who are released from jail or prison, but still serving their sentence on probation or parole can, while under the terms of their sentence, be restricted from residing near areas where children commonly gather. After the completion of their parole or probationary sentence, this group of sex offenders is no longer under any restrictions regarding where they choose to reside. Therefore, they may legally establish residences near schools, daycare centers, parks, and other places where children gather. Most area cities including Lewisville, Flower Mound, Carrollton, and Frisco have adopted ordinances establishing child safety zones which prohibit sex offenders convicted of offenses against minors from residing within at least 1,500 feet of premises where children commonly gather. After adopting child safety zones, these cities reported decreases in the numbers of convicted sex offenders who chose to reside within their city limits after release from incarceration. In addition, all of these cities currently have fewer registered sex offenders than Denton (Table 1). Table 1: Comparison of Registered Sex Offenders by City In 2007, the year in which Lewisville adopted a sex offender ordinance; there were seventy- seven (77) registered sex offenders within the Lewisville city limits. Now that Lewisville has established child safety zones, the number of registered sex offenders has decreased to fifty (50). When Frisco adopted a sex offender ordinance in 2008, thirty-seven (37) offenders were registered. There are currently thirty-seven (37) registered sex offenders in Frisco. Since 2007, Denton has experienced a steady increase in the number of registered sex offenders who choose to reside in Denton for personal reasons or after being paroled to Denton after release from incarceration. In 2007, ninety-seven (97) sex offenders were registered in Denton. The number of these offenders has now reached one hundred thirty-two (132). To date, there have been no documented instances of registered sex offenders reoffending and victimizing children in Denton. However, continual increases in the registered sex offender population adversely impact the ability of law enforcement officers to monitor their activities, which in turn threatens the safety of children. It has been shown that when cities adopt residency restrictions for registered sex offenders, the result is either a leveling out or a downward trend in the number of sex offenders that choose to re-locate to that city. There are at least two reasons that the population of registered sex offenders declines or levels out after the adoption of sex offender exclusion zone ordinances. First, the exclusion zones limit the amount of available housing options for those registered offenders who are seeking to move to the city upon release from jail or prison. Therefore, fewer new registered offenders will relocate to the city. The registered offenders who were exempted from the ordinance because they established residency prior to its adoption will decline due to registration guidelines. Convicted sex offenders are required to register with local law enforcement for either ten years or life. Those registered offenders who are subject to a ten-year registration period are exempted from the ordinance once their registration term expires. In Denton, there are currently thirty-two (32) such offenders. The combination of fewer new sex offender registrants and the gradual decline of ten-year registrants results in a smaller population of registered sex offenders. The proposed sex offender ordinance would make it unlawful for those sex offenders who were convicted of crimes against children from establishing a permanent residence within 1,500 feet of places where children commonly gather. Generally, this includes schools, parks, video arcades and recreational facilities. Day care centers with thirteen (13) or more enrolled children are also included within the exclusion area. The City of Denton will maintain a map depicting the prohibited areas. The map will be reviewed annually and made available to the public via City of Denton Police Department. The ordinance does not apply to juvenile offenders and exempts the permanent residences of those offenders who were registered prior to the date of adoption of the ordinance. Violations of the ordinance are punishable by a five hundred dollar ($500) fine for each offense. After thirty days from the issuance of the first citation, violators are subject to a new citation for each day the ordinance is violated. Most cities in the area have adopted either 1,000 foot or 1,500 foot child safety zones. Maps A and B highlight the proposed child safety zones within the city of Denton. Map A depicts the proposed 1,500 foot child safety zones. Map B shows the same area with 1,000 foot child safety zones. Map C depicts the 1,000 foot sex offender exclusion zone adopted by the City of Carrollton. Map D shows the 1,500 foot coverage area in Flower Mound. The coverage area within the exclusion zones (1,000ft or 1,500ft) does not appear to have any impact on the number of offenders who register in any given jurisdiction. The cities with the highest number of registered sex offenders, Arlington, Denton, and Irving all have either no child safety zone ordinance o offenders with more than two convictions. These cities also have a much higher population of registered offenders than comparison cities with similar overall populations. (Table 2) Table 2: Sex Offender Exclusion Zone Coverage Area by City OPTIONS 1.Council can approve the proposed ordinance as written. 2.Council can direct staff to make additional revisions to the ordinance. 3.Council can reject the proposed ordinance. RECOMMENDATION Staff recommends that Council approve the ordinance as written. PRIOR ACTION/REVIEW September 6, 2011 Council Work Session FISCAL IMPACT Staff does not anticipate any direct, measureable fiscal impact from the proposed ordinance. The potential exists for some limited revenue generated from violations. However, any revenue increase would be limited and temporary as violator behavior is modified. Respectfully submitted, Scott Fletcher Acting Chief of Police Prepared by: Lenn Carter, Captain Sex Offender Exclusion Zone 1,500 Feet From All Public and Private Schools, Parks, Child Care Facilities, Recreation Centers, and Video Arcades ± Legend 1,500' Buffer Parks Schools (Public & Private) Child Care Facilitiies* Excluded Parcels* *Child Care Facilities: Locations gathered from the Texas Department of Family Services. Only Non-Home Based facilities were included. *Excluded Parcels: Only parcels with a property code indicating probable residential use were included. Note: Unless otherwise stated, the information provided on this map represents the current data in the 01,7503,5007,00010,50014,000 Denton GIS system. It is not an official map of the City of Denton and is not to the accuracy standards of a survey map. This map may contain errors and omissions. Feet Sex Offender Exclusion Zone 1,000 Feet From All Public and Private Schools, Parks, Child Care Facilities, Recreation Centers, and Video Arcades ± Legend 1,000' Buffer Parks Schools (Public & Private) Child Care Facilitiies* Excluded Parcels* *Child Care Facilities: Locations gathered from the Texas Department of Family Services. Only Non-Home Based facilities were included. *Excluded Parcels: Only parcels with a property code indicating probable residential use were included. Note: Unless otherwise stated, the information provided on this map represents the current data in the 01,7503,5007,00010,50014,000 Denton GIS system. It is not an official map of the City of Denton and is not to the accuracy standards of a survey map. This map may contain errors and omissions. Feet ± reffub OS NL NACNUDNL NACNUD NL KCIRTAPKRIK NI DVLB TSEROF EKAL DR SSIRROM DR EIRIARP GNOL NL SKAO GINDNIW SO buffer c:\documents and settings\sefletch\local settings\temporary internet files\content.outlook\nqxcq0kj\sex offenderamended2.doc ORDINANCE NO._________________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING CHAPTER 21 OF THE CODE OF ORDINANCES BY ADDING ARTICLE IV, SECTIONS 21-60 THROUGH 21-65, MAKING IT UNLAWFUL FOR CERTAIN SEX OFFENDERS TO RESIDE WITHIN 1,500 FEET OF PREMISES WHERE CHILDREN GATHER; PROVIDING THAT A CULPABLE MENTAL STATE IS NOT REQUIRED FOR COMMITTING AN OFFENSE UNDER THIS ARTICLE OF THE CITY OF DENTON CODE OF ORDINANCES; PROVIDING FOR AFFIRMATIVE DEFENSES; PROVIDING A REPEALING CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PENALTY OF FINE NOT TO EXCEED FIVE HUNDRED DOLLARS ($500.00); AND PROVIDING FOR AN EFFECTIVE DATE. THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Chapter 21 of the City of Denton Code of Ordinances titled Offenses be, and the same is, hereby amended by adding Article IV, Regulations of Sex Offenders Residency, which shall read as follows: ARTICLE IV. REGULATION OF SEX OFFENDERS RESIDENCY Sec. 21-60. Definitions. For the purposes of this Section, the following terms, words, phrases and the derivations thereof shall have the meanings given herein: A facility providing care, training, education, custody, treatment, or Daycare center. supervision for 13 or more children for less than 24 hours a day. shall mean a person younger than seventeen (17) years of age. Minor shall mean a place where a person abides, lodges, or resides Permanent Residence for fourteen (14) or more consecutive days. shall mean a public park, private or public Premise where children commonly gather school, day care center, any public or non-profit recreational facility, or video arcade facility. For the purposes of this Ordinance, planted street medians are not public parks. shall mean a place where a person abides, lodges, or resides for a Temporary Residence period of fourteen (14) or more days in the aggregate during any calendar year and which is not the persons permanent address, or a place where a person routinely abides, resides, or lodges for a period of four (4) or more consecutive or nonconsecutive days in any month and which is not the persons permanent residence. c:\documents and settings\sefletch\local settings\temporary internet files\content.outlook\nqxcq0kj\sex offenderamended2.doc Sec. 21-61. Offenses. For each person required to register on the Texas Department of Public Safetys Sex Offender Database (the Database) because of a violation involving a victim who was a minor as defined herein, it is unlawful for that person to establish a permanent residence or temporary residence within 1,500 feet of any premise where children commonly gather. Sec. 21-62. Evidentiary matters; measurements. A. It shall be prima facie evidence that this Section applies to such a person if that persons record appears on the Database and the Database indicates that the victim was a minor as defined herein. B. For the purposes of determining the minimum distance separation, the requirement shall be measured by following a straight line from the outer property line of the permanent or temporary residence to the nearest property line of the premises where children commonly gather, as described hereinabove. C. A map depicting the prohibited areas shall be maintained by the City of Denton. The City shall review the map at least annually for changes. Said map will be available to the public at the City of Denton Police Department. Sec. 21-63. Culpable mental estate not required. Neither allegation nor evidence of a culpable mental state is required for the proof of an offense defined by this Chapter. Sec.21-64. Affirmative defenses. It is an affirmative defense to prosecution that any of the following conditions apply: (1) The person required to register on the Database has previously established the permanent or temporary residence and has complied with all the sex offender registration laws of the State of Texas, prior to the date of the adoption of this Ordinance. (2) The person required to register on the Database was a minor when he or she committed the offense requiring such registration, and was not convicted as an adult. (3) The person required to register on the Database is a minor. (4) The premises where children commonly gather, as specified herein, within 1,500 feet of the permanent or temporary residence of the person required to register on Page 2 c:\documents and settings\sefletch\local settings\temporary internet files\content.outlook\nqxcq0kj\sex offenderamended2.doc the Database was opened after the person established the permanent or temporary residence and complied with all sex offender registration laws of the State of Texas. (5) The information on the Database is incorrect, and, if corrected, this Section would not apply to the person who was erroneously listed on the Database. Sec. 21-65. Penalty. An offense under this Article shall be deemed to be a misdemeanor and, upon conviction, is punishable by a fine not to exceed Five Hundred Dollars ($500.00) for each offense. After thirty days has passed from the issuance of the first citation for a violation of this ordinance, then each day this ordinance is violated shall constitute a new and separate offense. SECTION 2 . All ordinances of the City of Denton in conflict with the provisions of this ordinance shall be, and the same are, hereby repealed; provided, however, that all other provisions of said ordinances not in conflict herewith shall remain in full force and effect. SECTION 3. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance or of the Code of Ordinances, as amended hereby, be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance or the Code of Ordinances, as amended hereby, which shall remain in full force and effect. SECTION 4 . An offense committed before the effective date of this ordinance is governed by prior law and provisions of the Code of Ordnances, as amended, in effect when the offense was committed and the former law is continued in effect for this purpose. SECTION 5. Any person violating any of the provisions or terms of this ordinance or of the Code of Ordinances as amended hereby, shall be subject to the same penalty as provided for in the Code of Ordinances of the City of Denton, as previously amended, and upon conviction shall be punished by a fine not to exceed the sum of Five Hundred Dollars ($500) for each offense. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ___________________, 2011. __________________________________ MARK A. BURROUGHS, MAYOR Page 3 c:\documents and settings\sefletch\local settings\temporary internet files\content.outlook\nqxcq0kj\sex offenderamended2.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________ ________________ Page 4 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George C. Campbell, City Manager SUBJECT Consider approval of a resolution of the City of Denton, Texas, in support of the passage of legislation rd during the 83 State Legislative Session that will revise the current interpretation of the Texas Administrative Code, such that staff of municipal governments and non-profit housing organizations are not designated as mortgage loan originators and are therefore not required to meet state licensing requirements; and providing for an effective date. BACKGROUND Every year, the Texas Municipal League (TML) gives cities the opportunity to submit resolutions for consideration by the Resolutions Committee. If the committee approves the resolution it is added to TML state legislative program. City staff proposes the following resolution for consideration for submission to TML. st The Texas SAFE Act was passed on June 19, 2009 and became effective July 31, 2010. The stated purpose of the Act was to ensure compliance with the Federal SAFE Act by those considered “mortgage loan originators” in the State of Texas. The Texas Department of Savings and Mortgage Lending (TX SML) was given the responsibility of setting up training, testing and licensing procedures for “loan originators” doing business in the State. It was determined by the TX SML that local government and non-profit housing organization employees that assisted in providing homebuyer assistance and residential rehabilitation loans with Federal and State grant funding, were to be considered “mortgage loan originators” and required these individuals to be licensed to carry out this function. It was also required that the city, county or non-profit organization be enrolled in the National Mortgage Licensing System (NMLS) as the “sponsor” of the mortgage loan originator. It became apparent, as local governments and non-profit housing organizations proceeded to attend training and submit to testing on the commercial mortgage lending information that they were not carrying out the same function as the commercial mortgage loan originators. Information provided at the trainings and the subsequent testing was not applicable to the type of housing assistance provided by cities, counties and non-profits. It was indicated by organizations participating in the process, that it was a significant waste of resources, primarily staff time and the funding expended for unnecessary training, testing and reporting. The intent of the Federal SAFE Act (included as part of the Housing and Economic Recovery Act of 2008 (Pub. L. 110-289, approved July 30, 2008) was to ensure that the mortgage loan crisis that had recently occurred and caused many mortgage holders to lose their homes due to their inability to make their mortgage payments, would not continue or re-occur at any time in the future. However, loans provided by local governments and non-profits for housing repairs and homebuyer assistance are required to meet stricter loan guidelines due to the Federal grant funds involved. As a result, these programs did not have a significant number of defaults as experienced in the private mortgage industry. The recent HOME Final Rule [Docket No. FR-5271-F-03] issued by the U.S. Department of Housing and Urban Development (HUD) on June 30, 2011, stated that employees of governments and housing finance agencies are not subject to the licensing and registration requirements of the Federal SAFE Act. This resolution would revise the current interpretation of the Texas Administrative Code such that the staff of municipal and county governments and non-profit housing organizations are not designated as mortgage loan originators and are therefore not required to meet state licensing requirements. The resolution also directs staff to take all necessary steps to obtain the support of the Texas Municipal League and the inclusion of this matter on TML’s legislative agenda. RECOMMENDATION: Staff recommends adoption of the resolution. PRIOR ACTION/REVIEW (Council, Boards, Commissions) None EXHIBITS Resolution Respectfully submitted: John Cabrales Jr. Public Information/Intergovernmental Relations Officer AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George C. Campbell, City Manager SUBJECT Consider approval of a resolution of the City of Denton, Texas, in support of the passage of legislation rd during the 83 State Legislative Session that will allow the release of information to the public prior to action by the governing body, and allow the discussion and presentation concerning requests for proposals in an open meeting; and providing for an effective date. BACKGROUND Every year, the Texas Municipal League (TML) gives cities the opportunity to submit resolutions for consideration by the Resolutions Committee. If the committee approves the resolution it is added to TML state legislative program. City staff proposes the following resolution for consideration for submission to TML. Texas Government Code 552.104 provides statutory exemption from public disclosure, “information that, if released, would give advantage to a competitor or bidder.” Texas Local Government Code 252.049 provides that “proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps proposals secret during negotiations.” Furthermore, the statute provides after the contract is awarded that, “all proposals are open for public inspection .” Texas Local Government Code 252.042 allows for local government entities to seek “best value” through discussions, revisions, clarifications, and additional negotiations with offerors who have been determined to be reasonably qualified for the award of the contract. A contract has not been awarded until action has been taken by the “governing body” of the local government entity and therefore details of the proposal or ongoing negotiations should not be made public until after the contract has been awarded. The City of Denton believes that Texas Local Government Code 252.049 prohibits disclosure of contents of Requests for Proposals in an open session meeting with city council. Otherwise, the information becomes accessible to the public and competing offerors, prior to the action by the governing body. The only possible alternative is to hold any discussion in a closed session meeting with city council, which may not be possible under the related statute. The City of Denton would propose the following amendment to Texas Local Government Code All proposals are open for public inspection upon written recommendation for award, 252.049: but trade secrets and confidential information in the proposals are not open for public inspection. This resolution will allow the release of information to the public prior to action by the governing body, and allow the discussion and presentation concerning requests for proposals in an open meeting, and thus codify our current practice. The resolution also directs staff to take all necessary steps to obtain the support of the Texas Municipal League and the inclusion of this matter on TML’s legislative agenda. RECOMMENDATION: Staff recommends adoption of the resolution. PRIOR ACTION/REVIEW (Council, Boards, Commissions) None EXHIBITS Resolution Respectfully submitted: John Cabrales Jr. Public Information/Intergovernmental Relations Officer AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: City Manager’s Office CM: George Campbell,City Manager SUBJECT Consider nominations/appointments to the City’s Boards and Commissions. BACKGROUND Below is the list of outstanding Boards and Commissions nominations and the Council Member responsible for the nomination: Health & Building Standards Commission – Alan Nelson has moved outside of the city limits. This is a nomination for Council Member Gregory. There are also two Alternate positions which are nominations for any council member. Public Art Committee – Justin Rouhier has moved outside of the city limits. This is a nomination for Mayor Burroughs. Zoning Board of Adjustment – Alex Payne has moved outside of the city limits. This is a nomination for Council Member Gregory. If a current alternate is moved to a full position, there will be a vacant alternate position for any council nomination. Nominations could be made and voted on at this meeting should the Council desire. Approval would be contingent on completion of the confirmation process. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Regional Center Commercial Neighborhood (RCC-N) zoning district classification and use designation to a Regional Center Commercial Downtown (RCC-D) zoning district classification and use designation, on 1.441 acres of land located on the north side of Schuyler Street, northeast of Worthington Drive and known as Lot 6, Block A of the Hull Addition, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z11-0010). The Planning and Zoning Commission recommends approval (7-0). BACKGROUND The applicant (Spring Brook Planning) proposes to rezone the subject property with the intent to develop a vehicle repair use. The current zoning district does not permit vehicle repair and the proposed zoning district does. The property is currently developed with two (2) warehouse buildings, one (1) with 10,000 square feet of floor area and the other 6,000 square feet of floor area. The owner desires to lease the warehouse structures to a business that will customize commercial vehicles. Although the proposed rezoning is specifically to allow vehicle repair, other development rights would also be permitted including increases in potential residential density, commercial and industrial intensity and building height. Regardless, staff is able to support the request based on the zoning criteria approval set forth in the Denton Development Code. The subject property was platted in 1998 as the Hull Addition, Lot 6. In 1998, the site was located within a Light Industrial (LI) zoning district which permitted vehicle repair. With adoption of the Denton Development Code (DDC) in February 2002, the site was rezoned to Regional Center Commercial Neighborhood (RCC-N) use. The applicant declined to hold a neighborhood meeting. Eight (8) public notices were sent to property owners within 200 feet of the site (Exhibit 7). As of this writing, staff has received three responses to the Notice of Public Hearing from property owners within this boundary area; one neutral to the request and two in favor of the request. OPTIONS 1.Recommend approval as submitted. 2.Recommend approval subject to conditions. 3.Recommend denial. 4.Postpone consideration. 5.Table item. RECOMMENDATION APPROVAL The Planning and Zoning Commission recommends of this rezoning request (7-0). APPROVAL The Development Review Committee recommends of this rezoning request. PRIOR ACTION/REVIEW 1.Planning and Zoning Commission August 10, 2011 EXHIBITS 1. 2.Site Location/Aerial Map 3.Existing Zoning Map 4.Proposed Zoning Map 5.Future Land Use Map 6.Letter from the Applicant 7.Site Photos 8.Notice of Public Hearing Responses 9.Planning and Zoning Commission, August 10, 2011, Meeting Minutes 10.Ordinance Prepared by: Erica Marohnic, AICP Senior Planner Respectfully submitted: Mark Cunningham, AICP, CPM Director of Planning and Development EXHIBIT 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 10, 2011 TYPE: Rezoning CC Date: September 20, 2011 PROJECT #:Z11-0010 Project Number: Z11-0010 Request: Rezoning from a Regional Center Commercial Neighborhood (RCC-N) zoning district to a Regional Center Commercial Downtown (RCC-D) zoning district on approximately 1.441 acres. Applicant: Spring Brook Planning Group 2405 Mustang Drive Grapevine, TX 76051 Property Owner: Jim/Heritage, LP 4401 N I-35E, Ste. 107 Denton, TX 76051 Location: The property is located on the north side of Schuyler Street, northeast of Worthington Drive. Size: 1.441 acres Zoning Designation: Regional Center Commercial Neighborhood (RCC-N) Future Land Use: Regional Mixed-Use Centers Case Planner: Erica Marohnic, AICP DRC Recommendation: APPROVAL The Development Review Committee recommends of this rezoning request. Summary of Analysis: The subject property was platted in 1998 as the Hull Addition, Lot 6, and developed with to warehousing structures totally 16,000 sq. ft. The current owner is proposing to lease the existing structure space to a business that will customize commercial vehicles, specifically the interior of these vehicles. Per the DDC, this customization is classified as a form of vehicle repair. The existing RCC-N district does not permit vehicle repair. The closest zoning district in the Regional Mixed-Use Centers family of uses that does permit this specific use is RCC-D. The applicant is requesting to up-zone the property in order to accommodate a particular use for their property. New uses to be permitted with rezone approval to RCC-D besides vehicle repair include: bed and breakfast, retail sales and service, auto and RV sales, administrative and research facilities, bakeries, light manufacturing, veterinary clinics and business/trade schools. Uses that would no longer be permitted with a rezone to RCC-D include motels and elementary schools. With the proposed rezoning, though some new uses will be permitted and others will no longer be permitted, the area where regulations greatly differ is related to the bulk, dimensional and setback requirements. The RCC-N district requires minimum lot width, depth, front, side and rear setbacks; whereas, the RCC-D district has no minimum requirements. Additionally, the potential Floor Area Ratio (FAR) for commercial and industrial uses doubles and residential density has the potential to increase by 20 dwelling units per acre. Maximum lot coverage increases by 5 percent, minimum landscaped area decreases by 5 percent and the maximum potential height increases by 35 feet if a rezoning were approved. The proposed rezoning is compatible with the underlying future land use category and DDC. Future replatting and construction is not anticipated with approval of the rezoning and future development of the site. Findings of Fact 1. The applicant is requesting to rezone approximately 1.441 acres from a Regional Center Commercial Neighborhood (RCC-N) to a Regional Center Commercial Downtown (RCC-D) zoning district. The subject site is located within the Regional Mixed-Use Centers future land use category. 2.The property is platted as the Hull Addition, Lot 6. There are two existing warehouse structures on the property totally 16,000 sq. ft. The property has historically been utilized for wood truss storage and distribution. 3.Prior to the adoption of the Denton Development Code in 2002, the subject site was zoned Light Industrial (LI). 4.The purpose of Regional Mixed Use Centers is to create centers of activity including shopping, services, recreation, employment and institutional facilities supported by and serving an entire region. 5.Land Use categories within Regional Mixed Use Centers include Regional Center Residential 1 (RCR-1), Regional Center Residential 2 (RCR-2), Regional Center Commercial Neighborhood (RCC-N) and Regional Center Commercial Downtown (RCC-D). 6.The focus area for a regional activity center contains the shopping, services, recreation, employment, and institutional facilities supported by and serving an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high-density housing. A regional activity center is considerably larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. 7.Regional Mixed-Use Activity Centers are to provide convenience & comparative shopping for goods & services to an individual neighborhood as well as the entire city & surrounding area. 8.Adequate public facilities shall be a criterion by which zoning is granted. 9.The subject site is not located within an Overlay, Historic or Conservation District. 10.There are no planned public improvements for potable water, sanitary sewer, drainage or transportation facilities serving the subject site. 11.There are no identified environmentally sensitive areas located on site. 12.Worthington and Schuyler Streets are classified as improved perimeter and Main Street Mixed Use Collector, per the City’s Transportation Criteria Manual a 70 ft. right-of-way is required. The subject site takes sole access from Schuyler Street Circle. 13.An existing 8-inch potable water main is along Schuyler Street and will serve the site. 14.An existing 8-inch gravity main sewer line is available along the Applicant’s western property line and Schuyler Street which will serve the site. 15.Anticipated water demand is approximately 130 gallons per day (GPD). 16.Anticipated wastewater demand is approximately 72 GPD. 17.Anticipated storm water demand is approximately 12.8 cubic feet per second (CFS). 18.Anticipated transportation demand is approximately 2,480 trips per day. 19.Extensions of existing facilities will not be required for development or redevelopment of the subject site, as proposed. Off-site improvements may be required if intensity of proposed future uses necessitates. Planning and Zoning Commission Recommendations APPROVAL The Planning and Zoning Commission recommends of this rezoning request. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development IS CONSISTENT Review Committee finds that with the recommended conditions the request IS CONSISTENT with the surrounding land uses and general character of the area, with the IS CONSISTENT Denton Plan, and with the Denton Development Code. Based upon the findings-of-fact, the Development Review Committee (DRC) recommends APPROVAL ofthis rezoning request. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: RCC-N; Vacant and Undeveloped RCC-N; Nelson Center RCC-N; Nelson Center West: Subject Property: East: RCC-N; Vacant and Undeveloped RCC-N; two Warehouse Structures RCC-N; Nelson Center Southwest: South: Southeast: RCC-D; Warehousing structures, RCC-D; Schuyler Street right-of-RCC-D; Schuyler Street right-of- various tenants way and Office way and Value Place Hotel Source: City of Denton Geographical Information System and site visit by City staff Comprehensive Plan: A.Consistency with Goals, Objectives and Strategies The purpose of Regional Mixed Use Centers is to create centers of activity including shopping, services, recreation, employment and institutional facilities supported by and serving an entire region. Land Use categories within Regional Mixed Use Centers include Regional Center Residential 1 (RCR-1), Regional Center Residential 2 (RCR-2), Regional Center Commercial Neighborhood (RCC-N) and Regional Center Commercial Downtown (RCC-D). The focus area for a regional activity center contains the shopping, services, recreation, employment, and institutional facilities supported by and serving an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high-density housing. A regional activity center is considerably larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. Regional Mixed-Use Activity Centers are to provide convenience & comparative shopping for goods & services to an individual neighborhood as well as the entire city & surrounding area. The existing and proposed zoning districts are consistent with the Goals, Objectives and Strategies of the Denton Plan. B.Land use analysis The existing RCC-N district does not permit vehicle repair. The closest zoning district in the Regional Mixed-Use Centers family of uses that does permit this specific use is RCC-D. The applicant is requesting to up-zone the property in order to accommodate a particular use for their property. New uses to be permitted with rezone approval to RCC-D besides vehicle repair include: Bed and Breakfast, Retail Sales and Service, Auto and RV Sales, Administrative and Research Facilities, Bakeries, Light Manufacturing, Veterinary Clinics and Business/Trade Schools. Uses that would no longer be permitted with a rezone to RCC-D include motels and elementary schools. Residential Land Use Categories RCC-N RCC-D Agriculture P P Livestock L(7) L(7) Single Family Dwellings N N Accessory Dwelling Units N N Attached Single Family Dwellings P P Dwellings Above Businesses P P Live/Work Units P P Duplexes N N Community Homes For the Disabled P P Group Homes SUP SUP L(6) & L(6) & Multi-Family Dwellings L (4) L(4) Manufactured Housing Developments N N Commercial Land Use Categories RCC-N RCC-D Home Occupation P P Sale of Products Grown on Site N N Hotels P P MotelsPN Bed and Breakfast L(9) P Retail Sales and Service L(13) P Movie Theaters P P Restaurant or Private Club P P Drive-through Facility P P Professional Services and Offices P P Quick Vehicle Servicing P P Vehicle Repair NP Auto and RV Sales NP Laundry Facilities P P Equestrian Facilities N N Outdoor Recreation N N Indoor Recreation P P Major Event Entertainment SUP SUP Commercial Parking Lots P P Administrative or Research Facilities L(14) P Broadcasting of Production Studio P P Sexually Oriented Business N N Temporary Uses L(38) L(38) Industrial Land Use Categories RCC-N RCC-D Printing / Publishing N N BakeriesL(21) P Manufacture of Non-odoriferous Foods N N Feed Lots N N Food Processing N N Light Manufacturing NL(23) Heavy Manufacturing N N Wholesale Sales N N Wholesale Nurseries N N Distribution Center N N Wholesale Storage and Distribution N N Self-service Storage N N Construction Materials Sales N N Junk Yards and Auto Wrecking N N Wrecker Services and Impound Lots N N Kennels N N Veterinary Clinics L(14) P Sanitary Landfills, Commercial N N Incinerators, Transfer Stations Gas Wells L(27) L(27) Institutional Land Use Categories RCC-N RCC-D Basic Utilities SUP SUP Community Service P P Parks and Open Space P P Churches P P Semi-public, Halls, Clubs, and Lodges P P Business / Trade School L(14) P Adult or Child Day Care P P Kindergarten, Elementary School P N Middle School P P High School P P Colleges P P Hospital P P Elderly Housing P P Medical Centers P P Cemeteries N N Mortuaries P P WECS (Free-standing Monopole Support SUP SUP Structure) WECS (Building-mounted) SUP SUP RCC-N RCC-D General Regulations Minimum lot area (square feet) None None Minimum lot width 20 feet None Minimum lot depth 50 feet None Minimum front yard setback 10 feet None Minimum side yard 6 feet None Minimum side yard adjacent to a street 6 feet None Minimum rear yard None None 30 feet 30 feet plus 1 plus 1 foot for foot for eacheach Minimum yard abutting a single family foot of foot of use or district buildingbuilding heightheight aboveabove 30 feet 30 feet Minimum residential unit size 500 SF 500 SF Maximum FAR 1.53.0 Maximum Density, dwelling units per 80100 acre Maximum Lot Coverage 85% 90% Minimum Landscaped Area 15% 10% Maximum building height 65 feet 100 feet Maximum WECS height 75 feet 110 feet L(4) = Multi-family is permitted only: 1.With a Specific Use Permit; or 2.As part of a Mixed-Use Development; or 3.As part of a Master Plan Development, Existing; or 4.If the development received zoning approval allowing multi-family use within one year prior to the effective date of Ordinance No. _2005-224; or 5.If allowed by a City Council approved neighborhood (small area) plan. nd L(6) = Permitted only on 2 story and above, when an office, retail, or other permitted commercial use is on the ground floor along any avenue, collector, or arterial street, otherwise office or retail uses are not required. L(7) = Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three L(9) = All restrictions of L(8), but limited to no more than 15 guest units. L(13) = Uses are limited to no more than 55,000 square feet of gross floor area per lot. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area. L(23) = Light manufacturing of products sold on site permitted, area of manufacture not to exceed 5,000 square feet. L(27) = Must comply with the provisions of Subchapter 89, Gas Well Drilling and Production. L (38) = Must meet the requirements of Section 35.12.9. The proposed rezoning is compatible with the underlying future land use category and DDC. C.Future Land Use Allocation/Current Zoning District Allocation Subject Property Future land Use/Zoning allocation Change Based Upon Current Allocation in the City Proposed Allocation 1.441 ± acres Request Regional Center Commercial 1,921.05 acres +1.441 acres 1,922.4 acres Downtown (RCC-D) Regional Center Commercial 1,043.04 acres -1.441 acres 1,041.6 acres Neighborhood (RCC-N) Source: City of Denton Nearest Fire, and EMS Station Approximate Distance From Name of Station Subject Property Fire/EMS Fire Station #5; 2230 W. Windsor Road 2.44 miles± Source: City of Denton GIS, Fire Department, and EMS This submittal has been reviewed for compliance with the 2006 International Fire Code and City Ordinance 2009-098, Section 29-2 Amendments to the Fire Code. The applicant is responsible for compliance with all applicable portions of the Fire Code and City Ordinances even in the absence of review comments. Water and Wastewater Demand and Capacity: A. Estimated Demand and Service Provider: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes 1.441 ± acres Proposed Demand or No) Permitted Density N/A N/A Potable Water 130* Yes Consumption (GPD) Wastewater 72 Yes Generation (GPD) *Estimate as most intense use for RCC-D, which is Multifamily. B. Available Capacity: Water service is available from the existing 8-inch main along Schuyler Street. Sewer service is available from the existing 8-inch gravity main along Schuyler Street and along the western property line. C. Planned Capital Improvements Projects (CIP): Currently there are no CIP planned for this area. Roadways/Transportation Network: A. Estimated Demand: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes Potential Demand 1.441 + acres or No) Permitted Density 3.0 FAR Yes Average Annual 2,480 Yes Daily Trips (AADT) PM Peak Hour Trips 231 Yes B. Available Capacity: The current street network has the capacity to accommodate the transportation needs from this development. However, depending on the type of development, additional off-site improvements may be warranted (i.e. turn lanes, signal cost participation, etc.). C. Roadway Conditions: Worthington and Schuyler Streets are classified as improved perimeter streets. D. CIP Planned Improvements: There are no planned CIP Improvement projects in this area. Environmental Conditions: A. Environmentally Sensitive Areas: There are no ESAs located on the subject site. Wells (Public/Private): Public or private potable water wells are not proposed for the site. The existing development is connected to City water. Airports: The subject site is not within the boundaries of the Denton Municipal Airport Overlay District. Electric: Denton Municipal Electric (DME) has existing overhead facilities on the subject property with sufficient capacity to support future growth. Park Facilities: Does not apply. Comments from other Departments: N/A. Exhibit 2 Site Location/Aerial Map Subject Site Exhibit 3 Existing Zoning Map Subject Site Exhibit 4 Proposed Zoning Map Subject Site Exhibit 5 Future Land Use Map Subject Site Exhibit 6 Letter from the Applicant Exhibit 7 Site Photos Facing Northeast towards the Site Facing North towards Site Facing North towards Site Facing Northeast towards Site Facing Northeast towards Site Exhibit 8 Notice of Public Hearing Responses Eight (8) public notices were sent to residents within 200 feet of the site. As of this writing, staff has received three responses to the Notice of Public Hearing from property owners within this boundary area; one neutral to the request and two in favor of the request. 500 Ft. Radius 200 Ft. Radius Subject Site Public Notification Date: July 29, 2011 200 Legal Notices sent: 8 500 Courtesy Notices sent: 11 Number of responses to 200 Legal Notice: In Opposition: 0 In Favor: 2 (1.76 acres or 21.46 %) Neutral: 1 (0.76 acres or 0.72%) CITY OF DENTON PLANNING AND ZONING COMMISSION MINUTES August 10, 2011 After determining that a quorum is present, the Planning and Zoning Commission convened in a Work Wednesday, August 10, 2011 Session on in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Vice-Chairman Jay Thomas, Commissioner Jean Schaake, Commissioner Patrice Lyke, Commissioner Thom Reece, Commissioner Devin Taylor, Commissioner Frank Conner, and Commissioner Brian Bentley. ABSENT: None. STAFF: Mark Cunningham, Aaron Leal, Fred Greene, Ron Menguita, Johnna Matthews, Erica Marohnic, Cindy Jackson, and Nikole Chew-Jones. WORK SESSION Vice-Chairman Thomas opened the Work Session at 6:00 p.m. Thomas asked that each member introduce themselves and give alittle background, since there are two new members 1. Clarification of agenda items listed in the Regular Session agenda for this meeting, and discussion of issues not briefed in the written backup materials. No clarifications were requested. 2. Consider nominations and elections of Planning and Zoning Commission Chair and Vice-Chair. Thomas discussed with Leal the pros and cons of holding the elections during the work session. Leal stated that the item had been noticed in an acceptable manner. Thomas chose to move forward at this time with the nominations and elections. Thomas opened the floor for nominations for the position of chairman. Reece nominated Jay Thomas for the position of chairman. The nomination was seconded Bentley. Schaake moved to close the nominations. Reece seconded the motion to close the nominations. Thomas called for a vote. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 Thomas opened nominations for vice-chairman. Bentley nominated Lyke. Schaake moved to close nominations. Thomas called for a vote. On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 Chairman Thomas closed the Work Session at 6:14 p.m. REGULAR MEETING After completing the Work Session, the Planning and Zoning Commission will convene a Regular Meeting of the Planning and Zoning Commission of the City of Denton, Texas which will be held on Wednesday, August 10, 2011 and will begin at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time the following items will be considered: Chairman Eagleton convened the Regular Session at 6:38 p.m. 1. PLEDGE OF ALLEGIANCE: A. U.S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas one state under God, one and indivisible." 2. CONSIDER APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES FOR: A. July 20, 2011 Mover: Commissioner Thom Reece Seconder: Commissioner Jean Schaake On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 3. CONSENT AGENDA: Staff recommends approval of the following items because they meet the requirements of the Denton Development Code. Approval of the Consent Agenda includes staff recommendations for approvals and authorizes staff to proceed. The Planning and Zoning Commission has reviewed the applications and has had an opportunity to raise questions regarding the items prior to consideration: A. Preliminary plat of Lot 1, Block 1 of the Lake Dallas Storage Addition. The approximately 6.88 acre property is located south of McKinney Street and approximately 1500 feet west of the intersection of McKinney Street and South Trinity Road. The property is located within the Rural Residential (RD-5) zoning district. (PP11-0008, Atmos Energy-Lake Dallas Storage, Ron Menguita) Mover: Commissioner Patrice Lykemoved to approve the Consent Agenda Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 4. PUBLIC HEARINGS: A. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 0.51 acres of land from a Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. The property is generally located on the north side of Fannin Street and east of Avenue A. (Z11-0009, 1118 & 1120 Fannin Street, Johnna Matthews) Matthews presented this item. The applicant is requesting the rezoning of approximately 0.51 acres of land from Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. Matthews stated that the subject property was rezoned from Single- Family 7 (SF-7) to DR-1 in 2002 by way of the city-wide rezoning. The proposed request is for the purpose of sale and redevelopment as a multi-family use. Notifications were sent out. Seventeen (17) 200 feet (Legal Notices) Fifty-four (54) 500 feet (Courtesy Notices) Staff received one (1) response in favor. Staff received one (1) response in opposition. Staff received zero (0) neutral responses. approval The Development Review Committee recommends of this request for rezoning. The applicant, Larry Reichhart, SpringBrook Planning Group spoke in favor of the request on behalf of the property owners. 6:43 p.m. The public hearing was opened at Various citizens spoke. 6:45 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 B. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 1.441 acres of land from a Regional Center Commercial Neighborhood (RCC-N) zoning district to a Regional Center Commercial Downtown (RCC- D) zoning district. The property is located on the north side of Schuyler Street, northeast of Worthington Drive. (Z11-0010, 3412 Schuyler Street, Erica Marohnic) Marohnic presented this item. The applicant is requesting to rezone approximately 1.441 acres from Regional Center Commercial Neighborhood (RCC-N) zoning district to a Regional Center Commercial Downtown (RCC-D) zoning district. The applicant proposes this rezoning with the intent to develop it as a vehicle repair use. The current zoning does not permit vehicle repair. The owner desires to lease the warehouse structures located on the property to a business that will customize commercial vehicles, specifically, the interior. The new zoning would permit increases in potential residential density, commercial and industrial intensity and building height. Notifications were sent out. Eight (8) 200 feet (Legal Notices) Eleven (11) 500 feet (Courtesy Notices) Staff received two (2) responses in favor. Staff received zero (0) responses in opposition. Staff received one (1) neutral response. approval The Development Review Committee recommends of this request for rezoning. The applicant, Larry Reichhart, SpringBrook Planning Group spoke in favor of the request on behalf of the owner. Reichhart stated that the proposed leasers will not paint or repair the exterior of vehicles on the premises. He also stated that the proposed leaser will only customize the interiors of commercial vehicles. 7:00 p.m. The public hearing was opened at No citizens spoke. 7:02 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Patrice Lyke On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 C. Hold a public hearing and consider making a recommendation to City Council regarding an amendment to the Quail Creek Special Sign District (2003-199) on an approximately 3.5 acre site within a larger 35.5 acre Special Sign District boundary. The property is located at the northeast corner of Brinker Road and Quail Creek Boulevard. (SD11-0004, Biolife Plasma Center, Erica Marohnic) Marohnic presented this item. The applicant is a requesting to amend the Quail Creek Special Sign District (2003-199) to change the location of the monument sign from Quail Creek Boulevard to the corner of Brinker Road and Quail Creek Boulevard. The current owners would like to construct a sign that is more visible from the intersection. The Special Sign District will have to be amended to allow the relocation of the sign. Notifications were sent out. Eight (8) 200 feet (Legal Notices) Ten (10) 500 feet (Courtesy Notices) Staff received zero (0) responses in favor. Staff received zero (0) responses in opposition. Staff received zero (0) neutral responses. approval The Development Review Committee recommends of this request to amend the Special Sign District. The applicant, Build to Suit, Inc. representative Jeff Coate, stated that he believed that Marohnic had presented all the facts and background need to support their request. 7:11 p.m. The public hearing was opened at No citizens spoke. 7:12 p.m. The public hearing was closed at Mover: Commissioner Brian Bentley motioned to approve with the stipulation that the twenty foot sign be removed Seconder: Commissioner Patrice Lyke On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 D. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 0.25 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential 6 (NR-6) zoning district. The subject property is located on the east side of Amarillo Street, approximately 150 feet south of West Congress Street. (Z11-0005, 524 Amarillo Street, Cindy Jackson) Jackson presented this item. This is a request for a rezoning from a Neighborhood Residential 3 (NR-3) zoning district to Neighborhood Residential 6 (NR-6) zoning district. This property was apart of the city-wide rezoning in 2002. It was rezoned to Neighborhood Residential 3 (NR-3). The applicant is requesting this rezoning to build a duplex on the site. It should be noted that the requested zoning would allow use of all the classifications and regulations associated with the NR-6 zoning district. Staff has determined that the requested zoning is inappropriate at this location. If this property is rezoned, it will create spot zoning. Notifications were sent out. Eighteen (18) 200 feet (Legal Notices) Eight-one (81) 500 feet (Courtesy Notices) Staff received one (1) response in favor. Staff received zero (0) responses in opposition. Staff received one (1) neutral response. denial The Development Review Committee recommends of this request to rezone. The applicant, Betty Cooper, spoke in favor and she gave a handout of the proposed duplex that she is proposing to build on the lot. She stated that she knows nothing about zoning. The zoning district of NR- 6 was the zoning that was suggested by the Planning Department. Ms. Cooper stated that when she bought the property it was zoned to allow duplexes, but after the rezoning of the city in 2002 it was changed and the present zoning does not allow for duplexes. She would not be opposed to signing an agreement that offers any limitations that were deemed necessary. Ms. Cooper stated that she lives next to the subject property and she would not do anything that would affect her land value. 7:35 p.m. The public hearing was opened at Five citizens spoke in opposition. 7:50 p.m. The public hearing was closed at Mover: Commissioner Patrice Lykemotion to deny the request for rezoning. Seconder: Commissioner Frank Conner On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 E. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 2.5 acres of land from a Downtown Residential 1 (DR-1) zoning district to a Downtown Commercial General (DC-G) zoning district. The subject property is located on the east side of Cleveland Street, approximately 268 feet south of Eagle Drive. (Z11-0006, Midtown II, Cindy Jackson) Jackson presented this item. The applicant is requesting to rezone this property to expand the Midtown Student Housing Project that they just finished completing construction. the applicant is proposing to build a multi-family development, but the new proposed zoning would allow the use of the regulations and classifications that are permitted within Downtown Commercial General (DC-G). The applicant held a neighborhood meeting on July 19, 2011. He sent out notices to owners within the 500 feet of the property. The owners did not attend the neighborhood meeting. Staff sent out notifications. Twenty-one (21) 200 feet (Legal Notices) Seventy-one (71) 500 feet (Courtesy Notices) Staff received zero (0) responses in favor. Staff received one (1) response in opposition. Staff received one (1) neutral response. approval The Development Review Committee recommends of this request to rezone. This rezoning will require a super majority vote from the City Council. The applicant, Mac Jones, spoke in favor of the requested rezoning to expand the Midtown Student Housing. 8:05 p.m. The public hearing was opened at No citizens spoke in favor or opposition. 8:06 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 5. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. No future items. 6. ADJOURNMENT: Chairman Thomas adjourned the meeting at 8:07 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending an overlay district and approving an amendment to the Quail Creek Special Sign District for 3.5 acres of land within the 35.5 acre district located at the northeast corner of Brinker Road and Quail Creek Boulevard and also known as Lot 1, Block A of the Biolife Plasma Addition, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (SD11-0004). The Planning and Zoning Commission recommends approval subject to conditions (7-0). BACKGROUND The applicant (Build to Suit, Inc.) proposes to amend the approved Special Sign District to change the location of an approved 6-foot tall monument sign on Quail Creek Boulevard to the northeast corner of Brinker Road and Quail Creek Boulevard (see Exhibit 5). The current owner desires to construct a sign that is more visible from the intersection of the roadways serving the site. The Special Sign District must be amended to facilitate relocation of the subject proposed sign. No other amendments are sought at this time. The subject property was platted in 2009 as the Biolife Plasma Addition and developed with one 7,000 sq. ft. office structure per the assigned zoning district of Regional Center Commercial Neighborhood (RCC-N). In 2003, a Special Sign District was approved on 35.5 acres within the Brinker Road, Quail Creek Boulevard, Colorado Boulevard area which included the subject 3.5 acre lot. The zoning of the property has not changed since adoption of the Denton Development Code (DDC) in February 2002. The applicant declined to hold a neighborhood meeting. Eight (8) public notices were sent to property owners within 200 feet of the site (Exhibit 9). As of this writing, staff has not received any responses to the Notice of Public Hearing from property owners within this boundary area. Agenda Information Sheet September 20, 2011 Page 2 OPTIONS 1.Recommend approval as submitted. 2.Recommend approval subject to conditions. 3.Recommend denial. 4.Postpone consideration. 5.Table item. RECOMMENDATION APPROVAL The Planning and Zoning Commission recommends of this amendment request subject to conditions (7-0). APPROVAL The Development Review Committee recommends of this rezoning request. PRIOR ACTION/REVIEW 1.Planning and Zoning Commission August 10, 2011 EXHIBITS 1. 2.Site Location/Aerial Map 3.Zoning Map 4.Future Land Use Map 5.Site Plan 6.Ordinance 2003-199 7.Letter from the Applicant 8.Site Photos 9.Notice of Public Hearing Responses 10.Planning and Zoning Commission, August 10, 2011, Meeting Minutes 11.Ordinance Agenda Information Sheet September 20, 2011 Page 3 Prepared by: Erica Marohnic, AICP Senior Planner Respectfully submitted: Mark Cunningham, AICP, CPM Director of Planning and Development EXHIBIT 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 10, 2011 TYPE: Special Sign District Amendment CC Date: September 20, 2011 PROJECT #:SD11-0004 Project Number: SD11-0004 Request: Amendment to the Quail Creek Special Sign District (2003-199) on an approximately 3.5 acre site within a larger 35.5 acre Special Sign District boundary Applicant: Biolife Plasma Services 3455 Quail Creek Drive Denton, TX 76208 Property Owner: AGRD/KGRD Denton 1805 State Street Bettendorf, IA 52722 Location: The property is located at the northeast corner of Brinker Road and Quail Creek Boulevard. Size: 3.5 acres within 35.5 acre Special Sign District boundary. Zoning Designation: Regional Center Commercial Neighborhood (RCC-N) Future Land Use: Regional Mixed-Use Centers Case Planner: Erica Marohnic, AICP DRC Recommendation: APPROVAL The Development Review Committee recommends of this amendment request. Summary of Analysis: Special Signs Districts (SSD) are mentioned and permitted through established criteria found in Subchapter 15 of the DDC. The Planning and Zoning Commission is to make a recommendation to the City Council if it finds that five criteria are met and that the proposal is “clearly superior” to what would be permitted with the plan. Minimum requirements for establishing a SSD are stated as, “The council may approve the creation of a sign district for any property which has more than three hundred (300) feet of continuous street frontage on one (1) public street if it finds the district: DRC Findings/Recommendation Page 1 of 4 #: SD11-0004 Case 9/8/2011 3:14:33 PM 1.Provides a comprehensive plan for signs that would be clearly superior to what would be allowed without the plan; 2.Would be compatible with surrounding properties. In considering whether a district and sign plan is “compatible” and “clearly superior,” the commission and council shall consider, but are not limited to considering the following: Scale 1.. The relationship between and compatibility of sign scale, site scale and the scale of nearby buildings. Color 2.. The relationship between and compatibility of sign color to the color of nearby buildings and landscaping: The degree to which sign colors are complimentary to its surroundings. Material 3.. The materials of the sign and how they relate to their surroundings. Shape 4.. The shape and design of the signs and how they relate to their surroundings. Landscaping 5.. The relationship of signs to landscaped features in and outside the district. Traffic Safety and Traffic Circulation 6.. The impact of the signs on the driver’s view, the degree to which view obstructions are created or improved, avoidance of confusion with or obstruction of traffic control signs and devises, and the time it takes a motorist to read the sign. Illumination 7.. The impact and compatibility of sign illumination within the district and in relation to neighboring properties. The avoidance of glare and light pollution. Integration 8.. How signs in the district are integrated into a unified development concept with the topography, building design, other signs, landscaping traffic circulation and other development features on the district and nearby property. 3.Is not being used merely to avoid or gain a variance of the sign regulations; 4.Does not violate the spirit or intent of the sign regulations; and 5.Complies with the requirements of this for a special sign district.” At the time the Quail Creek SSD was approved for this site, a Sign “A” six-foot tall maximum monument sign was shown at a driveway access off Quail Creek Boulevard and a Sign “B” 20- foot height monument sign was shown along the site’s Brinker Road street frontage. Quail Creek Boulevard did not exist at the time of the SSD approval. The current owner sought and received permit approval for one Sign “A” 6-foot tall monument sign at their main driveway entrance from Quail Creek Boulevard in November 2010. They have decided not to construct this sign; the permit expired in May 2011. Instead, the property owner desires to move the approved Sign “A” location to the intersection of Quail Creek Boulevard and Brinker Road (Exhibit 4) for overall greater visibility. The applicant does not desire to add additional signs to their property, nor increase the allowable height and effective area of the two allowable signs, nor amend the material shape or colors approved with Ordinance 2003-199. DRC Findings/Recommendation Page 2 of 4 #: SD11-0004 Case 9/8/2011 3:14:33 PM Planning and Zoning Commission Recommendations APPROVAL The Planning and Zoning Commission recommends of this amendment request subject to conditions (7-0). Conditions: a.Sign “A” shall be moved to the northeast intersection of Brinker Road and Quail Creek Boulevard within the 3.5 acre property known as Lot 1, Block A of the Biolife Plasma Addition from its original location near a mutual access taken from Quail Creek Boulevard and shall be developed, constructed, used and maintained in accordance with and limited to the Sign Site Plan attached hereto and made a part hereof as Exhibit “C”. The subject sign shall not be placed within any easements, rights-of-way or other encumbrances and shall adhere to the maximum effective area, dimensions and heights table attached to the original granting ordinance (2003-199). b.The allowed Sign “B” along Brinker Road frontage shall be removed from the Sign Site Plan and only Sign “A” shall be permitted for the entire 3.5 acre property known as Lot 1, Block A of the Biolife Plasma Addition. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development IS CONSISTENT Review Committee finds that with the recommended conditions the request IS CONSISTENT with the surrounding land uses and general character of the area, with the IS CONSISTENT Denton Plan, and with the Denton Development Code. Based upon the findings-of-fact, the Development Review Committee (DRC) recommends APPROVAL ofthis amendment request. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. DRC Findings/Recommendation Page 3 of 4 #: SD11-0004 Case 9/8/2011 3:14:33 PM Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: RCC-N; Vacant and Undeveloped RCC-N; Vacant and Undeveloped RCR-1; Vacant and Undeveloped West: Subject Property: East: RCC-D; Brinker Road right-of-way RCC-N; One Office Structure RCR-1; Vacant and Undeveloped and Home Depot within Denton and Providence Apartments Towne Crossing Southwest: South: Southeast: RCC-D; Brinker Road right-of-way RCC-N; Quail Creek Boulevard RCR-1; Providence Apartments and Railroad Right-of-way and Willow Bend Assisted Living Source: City of Denton Geographical Information System and site visit by City staff DRC Findings/Recommendation Page 4 of 4 #: SD11-0004 Case 9/8/2011 3:14:33 PM Exhibit 2 Site Location/Aerial Map Subject Site Exhibit 3 Zoning Map Subject Site Exhibit 4 Future Land Use Map Subject Site Exhibit 6 Ordinance 2003-199 Exhibit 7 Letter from the Applicant Exhibit 8 Site Photos Facing Southwest from the Site towards Facing Southwest from the Site towards Facing West from Site towards the the proposed sign locationthe proposed sign location proposed sign location Facing North towards the Site and Facing Northwest towards the Site approved sign location Exhibit 9 Notice of Public Hearing Responses Eight (8) public notices were sent to residents within 200 feet of the site. As of this writing, staff has received no response to the Notice of Public Hearing from property owners within this boundary area. 500 ft. Radius 200 ft. Radius Subject Site CITY OF DENTON PLANNING AND ZONING COMMISSION MINUTES August 10, 2011 After determining that a quorum is present, the Planning and Zoning Commission convened in a Work Wednesday, August 10, 2011 Session on in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Vice-Chairman Jay Thomas, Commissioner Jean Schaake, Commissioner Patrice Lyke, Commissioner Thom Reece, Commissioner Devin Taylor, Commissioner Frank Conner, and Commissioner Brian Bentley. ABSENT: None. STAFF: Mark Cunningham, Aaron Leal, Fred Greene, Ron Menguita, Johnna Matthews, Erica Marohnic, Cindy Jackson, and Nikole Chew-Jones. WORK SESSION Vice-Chairman Thomas opened the Work Session at 6:00 p.m. Thomas asked that each member introduce themselves and give alittle background, since there are two new members 1. Clarification of agenda items listed in the Regular Session agenda for this meeting, and discussion of issues not briefed in the written backup materials. No clarifications were requested. 2. Consider nominations and elections of Planning and Zoning Commission Chair and Vice-Chair. Thomas discussed with Leal the pros and cons of holding the elections during the work session. Leal stated that the item had been noticed in an acceptable manner. Thomas chose to move forward at this time with the nominations and elections. Thomas opened the floor for nominations for the position of chairman. Reece nominated Jay Thomas for the position of chairman. The nomination was seconded Bentley. Schaake moved to close the nominations. Reece seconded the motion to close the nominations. Thomas called for a vote. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 Thomas opened nominations for vice-chairman. Bentley nominated Lyke. Schaake moved to close nominations. Thomas called for a vote. On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 Chairman Thomas closed the Work Session at 6:14 p.m. REGULAR MEETING After completing the Work Session, the Planning and Zoning Commission will convene a Regular Meeting of the Planning and Zoning Commission of the City of Denton, Texas which will be held on Wednesday, August 10, 2011 and will begin at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time the following items will be considered: Chairman Eagleton convened the Regular Session at 6:38 p.m. 1. PLEDGE OF ALLEGIANCE: A. U.S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas one state under God, one and indivisible." 2. CONSIDER APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES FOR: A. July 20, 2011 Mover: Commissioner Thom Reece Seconder: Commissioner Jean Schaake On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 3. CONSENT AGENDA: Staff recommends approval of the following items because they meet the requirements of the Denton Development Code. Approval of the Consent Agenda includes staff recommendations for approvals and authorizes staff to proceed. The Planning and Zoning Commission has reviewed the applications and has had an opportunity to raise questions regarding the items prior to consideration: A. Preliminary plat of Lot 1, Block 1 of the Lake Dallas Storage Addition. The approximately 6.88 acre property is located south of McKinney Street and approximately 1500 feet west of the intersection of McKinney Street and South Trinity Road. The property is located within the Rural Residential (RD-5) zoning district. (PP11-0008, Atmos Energy-Lake Dallas Storage, Ron Menguita) Mover: Commissioner Patrice Lykemoved to approve the Consent Agenda Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 4. PUBLIC HEARINGS: A. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 0.51 acres of land from a Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. The property is generally located on the north side of Fannin Street and east of Avenue A. (Z11-0009, 1118 & 1120 Fannin Street, Johnna Matthews) Matthews presented this item. The applicant is requesting the rezoning of approximately 0.51 acres of land from Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. Matthews stated that the subject property was rezoned from Single- Family 7 (SF-7) to DR-1 in 2002 by way of the city-wide rezoning. The proposed request is for the purpose of sale and redevelopment as a multi-family use. Notifications were sent out. Seventeen (17) 200 feet (Legal Notices) Fifty-four (54) 500 feet (Courtesy Notices) Staff received one (1) response in favor. Staff received one (1) response in opposition. Staff received zero (0) neutral responses. approval The Development Review Committee recommends of this request for rezoning. The applicant, Larry Reichhart, SpringBrook Planning Group spoke in favor of the request on behalf of the property owners. 6:43 p.m. The public hearing was opened at Various citizens spoke. 6:45 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 B. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 1.441 acres of land from a Regional Center Commercial Neighborhood (RCC-N) zoning district to a Regional Center Commercial Downtown (RCC- D) zoning district. The property is located on the north side of Schuyler Street, northeast of Worthington Drive. (Z11-0010, 3412 Schuyler Street, Erica Marohnic) Marohnic presented this item. The applicant is requesting to rezone approximately 1.441 acres from Regional Center Commercial Neighborhood (RCC-N) zoning district to a Regional Center Commercial Downtown (RCC-D) zoning district. The applicant proposes this rezoning with the intent to develop it as a vehicle repair use. The current zoning does not permit vehicle repair. The owner desires to lease the warehouse structures located on the property to a business that will customize commercial vehicles, specifically, the interior. The new zoning would permit increases in potential residential density, commercial and industrial intensity and building height. Notifications were sent out. Eight (8) 200 feet (Legal Notices) Eleven (11) 500 feet (Courtesy Notices) Staff received two (2) responses in favor. Staff received zero (0) responses in opposition. Staff received one (1) neutral response. approval The Development Review Committee recommends of this request for rezoning. The applicant, Larry Reichhart, SpringBrook Planning Group spoke in favor of the request on behalf of the owner. Reichhart stated that the proposed leasers will not paint or repair the exterior of vehicles on the premises. He also stated that the proposed leaser will only customize the interiors of commercial vehicles. 7:00 p.m. The public hearing was opened at No citizens spoke. 7:02 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Patrice Lyke On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 C. Hold a public hearing and consider making a recommendation to City Council regarding an amendment to the Quail Creek Special Sign District (2003-199) on an approximately 3.5 acre site within a larger 35.5 acre Special Sign District boundary. The property is located at the northeast corner of Brinker Road and Quail Creek Boulevard. (SD11-0004, Biolife Plasma Center, Erica Marohnic) Marohnic presented this item. The applicant is a requesting to amend the Quail Creek Special Sign District (2003-199) to change the location of the monument sign from Quail Creek Boulevard to the corner of Brinker Road and Quail Creek Boulevard. The current owners would like to construct a sign that is more visible from the intersection. The Special Sign District will have to be amended to allow the relocation of the sign. Notifications were sent out. Eight (8) 200 feet (Legal Notices) Ten (10) 500 feet (Courtesy Notices) Staff received zero (0) responses in favor. Staff received zero (0) responses in opposition. Staff received zero (0) neutral responses. approval The Development Review Committee recommends of this request to amend the Special Sign District. The applicant, Build to Suit, Inc. representative Jeff Coate, stated that he believed that Marohnic had presented all the facts and background need to support their request. 7:11 p.m. The public hearing was opened at No citizens spoke. 7:12 p.m. The public hearing was closed at Mover: Commissioner Brian Bentley motioned to approve with the stipulation that the twenty foot sign be removed Seconder: Commissioner Patrice Lyke On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 D. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 0.25 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential 6 (NR-6) zoning district. The subject property is located on the east side of Amarillo Street, approximately 150 feet south of West Congress Street. (Z11-0005, 524 Amarillo Street, Cindy Jackson) Jackson presented this item. This is a request for a rezoning from a Neighborhood Residential 3 (NR-3) zoning district to Neighborhood Residential 6 (NR-6) zoning district. This property was apart of the city-wide rezoning in 2002. It was rezoned to Neighborhood Residential 3 (NR-3). The applicant is requesting this rezoning to build a duplex on the site. It should be noted that the requested zoning would allow use of all the classifications and regulations associated with the NR-6 zoning district. Staff has determined that the requested zoning is inappropriate at this location. If this property is rezoned, it will create spot zoning. Notifications were sent out. Eighteen (18) 200 feet (Legal Notices) Eight-one (81) 500 feet (Courtesy Notices) Staff received one (1) response in favor. Staff received zero (0) responses in opposition. Staff received one (1) neutral response. denial The Development Review Committee recommends of this request to rezone. The applicant, Betty Cooper, spoke in favor and she gave a handout of the proposed duplex that she is proposing to build on the lot. She stated that she knows nothing about zoning. The zoning district of NR- 6 was the zoning that was suggested by the Planning Department. Ms. Cooper stated that when she bought the property it was zoned to allow duplexes, but after the rezoning of the city in 2002 it was changed and the present zoning does not allow for duplexes. She would not be opposed to signing an agreement that offers any limitations that were deemed necessary. Ms. Cooper stated that she lives next to the subject property and she would not do anything that would affect her land value. 7:35 p.m. The public hearing was opened at Five citizens spoke in opposition. 7:50 p.m. The public hearing was closed at Mover: Commissioner Patrice Lykemotion to deny the request for rezoning. Seconder: Commissioner Frank Conner On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 E. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 2.5 acres of land from a Downtown Residential 1 (DR-1) zoning district to a Downtown Commercial General (DC-G) zoning district. The subject property is located on the east side of Cleveland Street, approximately 268 feet south of Eagle Drive. (Z11-0006, Midtown II, Cindy Jackson) Jackson presented this item. The applicant is requesting to rezone this property to expand the Midtown Student Housing Project that they just finished completing construction. the applicant is proposing to build a multi-family development, but the new proposed zoning would allow the use of the regulations and classifications that are permitted within Downtown Commercial General (DC-G). The applicant held a neighborhood meeting on July 19, 2011. He sent out notices to owners within the 500 feet of the property. The owners did not attend the neighborhood meeting. Staff sent out notifications. Twenty-one (21) 200 feet (Legal Notices) Seventy-one (71) 500 feet (Courtesy Notices) Staff received zero (0) responses in favor. Staff received one (1) response in opposition. Staff received one (1) neutral response. approval The Development Review Committee recommends of this request to rezone. This rezoning will require a super majority vote from the City Council. The applicant, Mac Jones, spoke in favor of the requested rezoning to expand the Midtown Student Housing. 8:05 p.m. The public hearing was opened at No citizens spoke in favor or opposition. 8:06 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 5. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. No future items. 6. ADJOURNMENT: Chairman Thomas adjourned the meeting at 8:07 EXHIBIT A LEGAL DESCRIPTION Lot 1, Block A of the Biolife Plasma Addition EXHIBIT B LOCATION MAP AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT - Z11-0009, 1118 & 1120 Fannin St. Hold a public hearing and consider an ordinance of the City of Denton, Texas, providing for a zoning change from a Downtown Residential 1 (DR-1) zoning district classification and use designation to a Downtown Residential 2 (DR-2) zoning district classification and use designation; on approximately 0.51 acres of land located on the north side of Fannin Street and east of Avenue A; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (Z11-0009). (Planning and Zoning Commission recommends approval 7-0). BACKGROUND The applicant, Larry Reichhart (Spring Brook Planning Group), is requesting the rezoning of the subject property for its proposed sale and redevelopment with a multi-family development. Although the applicant has indicated a desire to construct a multi-family development at this location, it is important to note that if the subject property is rezoned to DR-2 as requested, the property may be developed in accordance with the full use classification and general regulations associated with the DR-2 district. The increased intensity from a DR-1 zoning district to a DR-2 zoning district has been reviewed by staff and has been determined to be appropriate at this location. The property is currently developed with two single family structures and was platted as Lot 6, Block 2 of the Wattam Addition in 1903. However, at some point the lot was subdivided via metes and bounds description and sold as two lots; Lot 6, Block 2, West ½ of the Wattam Addition and Lot 6, Block 2 East ½ of the Wattam Addition. The City of Denton has no record of this subdivision. Furthermore, the City does not recognize metes and bounds subdivision of land. Therefore, the City considers the subject land holding to be one (1) 0.51 acre lot, and the applicant will not be required to replat the lot. The subject property was rezoned from Single Family 7 (SF-7) to DR-1 as a result of the city- wide rezoning in 2002. Uses in the SF-7 zoning district were limited to single family homes with allowances for certain educational and institutional uses, with approval of a Specific Use Permit (SUP). Staff sent seventeen (17) certified notices of the public hearing to property owners within two hundred (200) feet of the subject property and fifty four (54) courtesy notices to residents and property owners within five hundred (500) feet of the property. As of this writing, staff received one (1) notice in opposition of the request and one (1) notice in support of the request. Agenda Information Sheet September 20, 2011 Page 2 PRIOR ACTION/ REVIEW Planning and Zoning Commission August 10, 2011 OPTIONS 1.Approve as submitted. 2.Approve with conditions. 3.Deny. 4.Postpone consideration. 5.Table item. RECOMMENDATION APPROVAL The Planning and Zoning Commission recommends of Z11-0009 (7-0). APPROVAL The Development Review Committee (DRC) recommends of Z11-0009. EXHIBITS 1. Staff Report 2. Site Location/Aerial Map 3. Existing Zoning Map 4. Proposed Zoning Map 5. Future Land Use Map 6. Notification Map 7. Property Owner Responses to Notification 8. Applicant Letter of Intent 9. Site Photos 10. Planning and Zoning Commission Meeting Minutes (August 10, 2011) 11. Ordinance Prepared by: Johnna Matthews Senior Planner Respectfully submitted: Mark Cunningham, AICP, CPM Planning and Development Division Director EXHIBIT 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 10, 2011 TYPE: Rezoning CC Date: September 20, 2011 PROJECT #:Z11-0009 Project Number: Z11-0009, Fannin Street Rezoning Request: Rezone approximately 0.51 acres from a Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. Applicant: Larry Reichhart, Spring Brook Planning Group 2405 Mustang Drive Grapevine, TX 76051 Property Julie Holmes & Jannine McFarland Owners: 2220 W. Sanford Street Arlington, TX 76012 Location: The property is generally located on the north side of Fannin Street and east of Avenue A. Size: 0.51 acres +/- Existing Zoning Designation: Downtown Residential 1 (DR-1) Proposed Zoning Designation: Downtown Residential 2 (DR-2) Future Land Use: Downtown University Core Case Planner: Johnna M. Matthews DRC Recommendation: The Development Review Committee (DRC) recommends APPROVAL of Z11-0009. Summary of Analysis The proposed DR-2 zoning district of is one (1) of four (4) zoning districts within the group of Downtown University Core districts. Zoning districts within the Downtown University Core group include, in the following order of intensity; Downtown Residential 1 (DR-1), Downtown Residential 2 (DR-2), Downtown Commercial Neighborhood (DC-N) and Downtown Commercial General (DC-G). The purpose of this group of zoning districts is to encourage mixed use developments within specified commercial areas of the district. The district is also pedestrian friendly. The existing DR-1 zoning district is primarily a residential zoning district with allowances for only a bed and breakfast with a limitation and temporary uses in the commercial land use category. The existing zoning district does not permit industrial uses, with the exception of gas wells with approval of a Specific Use Permit (SUP); and various institutional uses are permitted, including basic utilities with approval of a SUP, parks and open space, churches, semi-public halls, clubs and lodges, adult or child daycare, and elementary schools. The DR-2 zoning district permits a maximum density of 30 dwelling units per acre with a limitation. Limitation L (5) states that within the district, the density of apartments will be calculated as one bedroom equating to .5 units. Based on the lot in question, the applicant could have 15, 1-bedroom units on the 0.51-acre site, minus any public/private right-of-way dedication, setback requirements, etc. The table below highlights only the differences in uses and general regulations of the existing zoning district of DR-1 and the proposed zoning district of DR-2. Following is a list of limitations associated with various uses, when the below table identifies a use as permitted, but limited. DR-1 DR-2 Residential Land Use Categories (Existing) (Proposed) Attached Single Family Dwellings N P Dwellings Above Businesses N P Multi-Family Dwellings N L(5) DR-1 DR-2 Commercial Land Use Categories (Existing) (Proposed) Bed and Breakfast L(8) L(9) Retail Sales and Service N L(15) Professional Services and Offices N L(15) Laundry Facilities N P Administrative or Research Facilities N SUP Broadcasting of Production Studio N SUP DR-1 DR-2 Industrial Land Use Categories (Existing) (Proposed) Veterinary Clinics N SUP DR-1 DR-2 Institutional Land Use Categories (Existing) (Proposed) Middle School N P Medical Centers N SUP Limitations Within this district the density of apartments will be calculated as one bedroom equating L(5) = to .5 units. L(8) = Travelers’ accommodations, are permitted, provided that: 1.The business-owner or manager shall be required to reside on the property occupied by the accommodation, or adjacent property. 2.That each accommodation unit shall have 1 off-street parking space, and the owners shall have 2 parking spaces. All spaces shall be in conformance with the requirements of the Off-Street Parking section of this Chapter. 3.That only one ground or wall sign, constructed of a non-plastic material, non-interior illuminated of 4 sq. ft. maximum size be allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or nearby the travelersÔ accommodation. 4.That the number of accommodation units allowed shall be proportional to the permitted density of the zone. Each travelerÔs accommodation unit shall be counted as 0.6 units for the purpose of calculating the permitted number of travelerÔs accommodations. 5.All travelerÔs accommodations shall be within 200 feet of a collector or arterial. Street designations shall be as determined by the City Comprehensive Plan. Distances shall be measured via public street or alley access to the site from the arterial. 6.Excluding the business-ownerÔs unit and the area of the structure it will occupy, there must be at least 400 sq. ft. of gross interior floor space remaining per unit. 7.TravelerÔs accommodations are limited to no more than 8 guest un All restrictions of L(8), but limited to no more than 15 guest units. L(9) = L(15) = Uses are limited to no more than 5,000 square feet of gross floor area per lot. An SUP is required for additional square footage for Semi-Public Halls, Clubs and Lodges. Findings of Fact 1.The request is to rezone the approximately 0.51-acre site from DR-1 to DR-2 to facilitate the construction of a multi-family development. There are currently two (2) single family homes on the site. 2.Prior to 2002, when the City of Denton was rezoned, the property was zoned Single Family 7 (SF-10). 3.The site is located within a “Downtown University Core” future land use designation. The Denton Plan states that specified commercial areas of the downtown university core district should be places of great vitality, with a mix of educational residential, retail, office, service, government, cultural and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn and play in the same neighborhood. It includes different uses which may occur on each floor of the building. 4.The proposed (DR-2) zoning districts will not require a comprehensive plan amendment. Both the existing and proposed zoning districts fall within the above future land use designation. Both zoning districts also belong to the Downtown University Core group of zoning districts whose intent is to encourage mixed use developments within specified commercial areas of the district. This district is pedestrian friendly. The University Core group has four (4) zoning districts including Downtown Residential 1 (DR-1), Downtown Residential 2 (DR-2), Downtown Commercial Neighborhood (DCN) and Downtown Commercial General (DC-G). 5.Adjacent zoning districts include DR-1 and DR-2 to the north and south and DR-1 to the west and east. 6.The surrounding area is developed with a mix of various uses. North of the site are existing single-family homes. West of the site is a multi-family development. East of the site is a multi-family development; and south of the site is single family and a proposed multi-family development, which was also rezoned to DR-2 earlier this year. 7.The subject property is the last on the block that are zoned DR-1. 8.There are no Environmentally Sensitive Areas (ESAs) on site. 9.Fannin Street is classified as a Residential Avenue Collector, per the City of Denton Mobility Plan, requiring 32.5 feet from the centerline of the street to the property line. 10.Construction of 8-foot sidewalks is required along the frontage of the property, per Section 1.1.1. of the Transportation Criteria Manual 11.Per Section 35.13.13.7 of the Denton Development Code, all non-residential developments are required to provide container enclosures for both solid waste and recycling storage facilities. 12.Water is available from the existing 6 inch main along Fannin Street. 13.Sewer is available from the existing 8 inch gravity main along Fannin Street. 14.Denton Municipal Electric (DME) is the electric provider for the site. 15.Park land dedication will be required if more than five (5) residential units are constructed. Planning and Zoning Commission Recommendation: The Planning and Zoning Commission recommends APPROVAL of Z11-0009 (7-0). Development Review Committee IS CONSISTENT The Development Review Committee finds that the request with the general IS CONSISTENTIS CONSISTENT character of the area, with the Denton Plan, and with the Denton Development Code. Based on the findings-of-fact, the Development Review Committee (DRC) recommends APPROVAL of Z11-0009. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: Downtown Residential 1 (DR-1) Downtown Residential 2 (DR-2) Downtown Residential 2 (DR-2) Downtown Commercial Downtown Residential 1 (DR-1) Neighborhood (DC-N) West: Subject Property: East: Downtown Residential 1 (DR-1) Downtown Residential 2 (DR-2) Downtown Residential 2 (DR-2) Southwest: South: Southeast: Downtown Residential 1 (DR-1) Downtown Residential 2 (DR-2) Downtown Residential 1 (DR-1) Downtown Residential 1 (DR-1) Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: The area within ¼ mile radius of the site is comprised of approximately 110 acres. Uses within a ¼ mile radius of the site include a range of uses from each land use category of the Denton Development Code, with the exception of industrial uses. Specifically, within a ¼ mile radius, there are 230 lots for which single family residences are located; 51 lots which contain multi- family uses; 73 lots with institutional uses such as schools, churches and various other governmental uses; 14 lots for which commercial uses are located; and approximately 52 undeveloped lots Comprehensive Plan: The proposed rezoning from DR-1 to DR-2 will not require a comprehensive plan amendment. The underlying future land use designation for the area considered for down zoning is Downtown University Core. Pursuant to the Denton Plan (Comprehensive Plan of the City of Denton), specified commercial areas of the downtown university core district should be places of great vitality, with a mix of educational, residential, retail, office, service, government, cultural and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image and quality of life. It is a place where residents can live, work, learn and play in the same neighborhood. It includes different uses which may occur on each floor of the building. Zoning Allocation: Currently, there is approximately 126 acres of land within the city that is zoned DR-1 and approximately 580 acres of land within the city zoned DR-2. The DR-1 land allocation will decrease to 125.49 acres and the DR-2 zoning land allocation will increase to approximately 580.51 acres. Zoning Allocation Zoning District Current Allocation Proposed Allocation DR-1 126 acres 125.49 acres (Existing) DR-2 580 acres 580.51 acres (Proposed) Nearest Elementary, Middle, and High School Name of School Approximate Distance Existing % Capacity Projects Estimated Annual From Subject Property Student Generation 1.7 ± miles 53% 2 Borman Elementary School 1.3 ± miles 64% 1 Calhoun Middle School 2 ± miles 82% 1 Denton High School Source: Denton Independent School District Nearest Fire and EMS Station Approximate Distance From Name of Station Subject Property Fire/EMS Fire Station # 3 (1204 McCormick) 0.3 miles ± Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes Proposed Demand 0.51 ± acres or No) Permitted Density 30 Dwelling Units/Acre Yes Potable Water Consumption 14 (peak) Yes (GPM) Wastewater 8 (peak) Yes Generation (GPM) B. Available Capacity: Water is currently available from the existing 6” main along Fannin Street. Sewer is available from the existing 8” gravity main along Fannin Street. No extensions of public water or sewer mains will be required. C. CIP Planned Improvements: None Planned Roadways/Transportation Network: A. Estimated Demand: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes 0.51 ± acres Proposed Demand or No) Permitted Density 15 units Yes Average Annual 100 Yes Daily Trips (AADT) PM Peak Hour Trips 10 Yes B. Available Capacity: Fannin Street is classified as a Residential Avenue Collector which requires 65’ of ROW; 32.5’ from the centerline of the street to the property line will be required. C. Roadway Conditions: Fannin Street is in fair condition and construction of 8-foot sidewalks will be required. D. CIP Planned Improvements: None Planned Environmental Conditions: There are no Environmentally Sensitive Areas (ESAs) on site. Electric: The electrical provider in the area is Denton Municipal Electric (DME). Exhibit 2 Site Location/Aerial Map Exhibit 3 Existing Zoning Map Exhibit 4 Proposed Zoning Map Exhibit 5 Future Land Use Map Exhibit 6 Notification Map Exhibit 7 Property Owner Responses to Notification Exhibit 8 Applicant Letter of Intent Exhibit 9 Site Photos South side of Fannin Street looking north at the existing sites. Southeast corner of the site looking west. South side of Fannin Street looking northeast at the site. Northwest side of Fannin Street looking east. North side of Fannin Street looking south at the property directly across the street from the subject site. Exhibit 10 Planning and Zoning Commission Meeting Minutes (August 10, 2011) 4. PUBLIC HEARINGS: A.Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 0.51 acres of land from a Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. The property is generally located on the north side of Fannin Street and east of Avenue A. (Z11-0009, 1118 & 1120 Fannin Street, Johnna Matthews) Matthews presented this item. The applicant is requesting the rezoning of approximately 0.51 acres of land from Downtown Residential 1 (DR-1) zoning district to a Downtown Residential 2 (DR-2) zoning district. Matthews stated that the subject property was rezoned from Single- Family 7 (SF-7) to DR-1 in 2002 by way of the city-wide rezoning. The proposed request is for the purpose of sale and redevelopment as a multi-family use. Notifications were sent out. Seventeen (17) 200 feet (Legal Notices) Fifty-four (54) 500 feet (Courtesy Notices) Staff received one (1) response in favor. Staff received one (1) response in opposition. Staff received zero (0) neutral responses. approval The Development Review Committee recommends of this request for rezoning. The applicant, Larry Reichhart, SpringBrook Planning Group spoke in favor of the request on behalf of the property owners. 6:43 p.m. The public hearing was opened at Various citizens spoke. 6:45 p.m. The public hearing was closed at Mover: Commissioner Jean Schaake Seconder: Commissioner Thom Reece On roll call vote: Chairman Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Brian Bentley "aye". Passed: 7/0 AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Downtown Residential 2 (DR-2) zoning district to a Downtown Commercial General (DC-G) zoning district on approximately 2.083 acres of land located south of Eagle Drive, west of Bernard Street, east of Beatty Street and north of Fannin Street, within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z11- 0016). The Planning and Zoning Commission recommends approval, subject to a restrictive overlay district (6-1). BACKGROUND The applicant (Crosswind Development Partners, LLC) proposes to rezone the subject property with the intent to develop student housing with a greater density than what the current zoning permits. The current zoning district allows multifamily development at a maximum of 30 dwelling units per acre. The zoning designation sought would permit up to 150 dwelling units per acre. The applicant is proposing approximately 209 dwelling units (approximately 101 dwelling units per acre), associated structured parking and some space at ground level for leasing and administration of the buildings. Although the proposed rezoning is specifically to increase potential density, other development rights would increase including new uses, commercial and industrial intensity and building height. Retail Sales and Services, Restaurants and Private Clubs and Professional Services and Offices are permitted within the DR-2 zoning district with an L(15) limitation which limits all uses to no more than 5,000 sq. ft. Regardless, staff is able to support the request based on the zoning criteria approval set forth in the Denton Development Code. The subject property is currently platted as seven residential lots within two separate subdivisions, the Hillside and Wattam Additions. Each lot is completely within the Downtown Residential 2 (DR-2) zoning district. Prior to adoption of the Denton Development Code (DDC) in February 2002, the site was wholly within the Multifamily 1 (MF-1) zoning district which permitted multifamily apartments as a use. Multifamily structures were limited in height to three stories or less and required 1,000 sq. ft. of land area per efficiency units, 1,200 sq. ft. per one- bedroom units and an additional 300 sq. ft. for each additional bedroom. Agenda Information Sheet September 20, 2011 Page 2 The applicant held a neighborhood meeting on August 4, 2011 at 1517 Centre Place Drive within the Axis Realty Offices. No one from the general public was in attendance at this meeting. Twenty-six (26) public notices were sent to property owners within 200 feet of the site (Exhibit 7). As of this writing, staff has received four responses to the Notice of Public Hearing from property owners within this boundary area; one in favor of the request and three in opposition. OPTIONS 1.Recommend approval as submitted. 2.Recommend approval subject to conditions. 3.Recommend denial. 4.Postpone consideration. 5.Table item. RECOMMENDATION APPROVAL The Planning and Zoning Commission recommends of this rezoning request, subject to a restrictive overlay district (6-1). APPROVAL The Development Review Committee recommends of this rezoning request. PRIOR ACTION/REVIEW 1.Planning and Zoning Commission August 24, 2011 EXHIBITS 1. 2.Site Location/Aerial Map 3.Existing Zoning Map 4.Proposed Zoning Map 5.Future Land Use Map 6.Letter from the Applicant 7.Site Photos 8.Notice of Public Hearing Responses 9.Planning and Zoning Commission, August 24, 2011, Meeting Minutes 10.Ordinance Agenda Information Sheet September 20, 2011 Page 3 Prepared by: Erica Marohnic, AICP Senior Planner Respectfully submitted: Mark Cunningham, AICP, CPM Director of Planning and Development EXHIBIT 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 24, 2011 TYPE: Rezoning CC Date: September 20, 2011 PROJECT #:Z11-0016 Project Number: Z11-0016 Request: Rezoning from a Downtown Residential 2 (DR-2) zoning district to a Downtown Commercial General (DC-G) zoning district on approximately 2.083 acres. Applicant: Crosswind Development Partners, LLC 2828 Routh Street, Suite 500 Dallas, TX 75201 Property Owners: Gaston Properties, LLC 6837 Regello Drive Frisco, TX 75034-2388 Mr. Jack George 2007 N. St. Andrew’s Court Arlington, TX 76011 Mr. Kent Key 2925 Country Club Road, Suite 106 Denton, TX 76210-8603 Location: The property is located south of Eagle Drive, west of Bernard Street, east of Beatty Street and north of Fannin Street. Size: 2.083 acres Zoning Designation: Downtown Commercial General (DC-G) Future Land Use: Downtown University Core Case Planner: Erica Marohnic, AICP DRC Recommendation: APPROVAL The Development Review Committee recommends of this rezoning request. Summary of Analysis: The subject property is currently developed with six (6) single-family homes and several accessory structures. The property is a combination of seven (7) platted lots from two separate subdivisions, Hillside and Wattam Additions. Crosswind Development Partners, LLC proposes to rezone the subject property with the intent to develop student housing at a greater density than what the current zoning permits. The existence of single-family structures does not render them non-conforming to the current zoning district of DR-2 and the historical zoning district of MF-1. Single-family residential is still and has been a permitted use. With a rezoning to DC-G, single- family residential would no longer be permitted. The amount of intensity sought for multifamily is much greater than currently permitted within the DR-2 as compared to the DC-G. The proposed rezoning is specifically to increase potential density from a maximum of 30 DUs/ac to 150 DUs/ac, however, other development rights would also be permitted including new uses, commercial intensity and building height. The applicant is proposing approximately 209 dwelling units which equates to 101 dwelling units per acre. While uses such as Retail Sales and Services, Restaurants and Private Clubs and Professional Services and Offices are permitted in the DR-2 and would continue to be permitted in the DC-G, they are not limited to 5,000 sq. ft. or less per a limitation, L(15). The proposed rezoning is compatible with the underlying future land use category and DDC. Future plat vacation, replatting (residential replat) and construction are anticipated with approval of the rezoning and future development of the site. Findings of Fact 1.The applicant is requesting to rezone on approximately 2.083 acres from a Downtown Residential 2 (DR-2) to a Downtown Commercial General Downtown (DC-G) zoning district. The subject site is located within the Downtown University Core future land use category. 2.The property is platted as part of the Hillside and Wattam Additions. There are six single-family homes and several accessory structures on the property. The property has historically been utilized for single-family residential. 3.Prior to the adoption of the Denton Development Code in 2002, the subject site was zoned Multifamily 1 (MF-1). 4.The purpose of Downtown University Core District is defined by the Denton Plan as: “Specified commercial areas of the Downtown University Core District should be places of great vitality, with a mix of education, residential, retail, office, service, government, cultural, and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn, and play in the same neighborhood. It includes different uses which may occur on each floor of the building.” 5.Land Use categories within Regional Mixed Use Centers include Downtown Residential 1 (DR-1), Downtown Residential 2 (DR-2), Downtown Commercial Neighborhood (DC- N) and Downtown Commercial General (DC-G). 7.Adequate public facilities shall be a criterion by which zoning is granted. 8.The subject site is not located within an Overlay, Historic or Conservation District. 9.There are no planned public improvements for potable water, sanitary sewer, drainage or transportation facilities serving the subject site. 10.There are no identified environmentally sensitive areas located on site. 12.Eagle Drive is classified as a Secondary Major Arterial. Beatty, Bernard and Fannin Streets are classified as residential Avenue Collectors. Additional right-of-way will be required to be dedicated prior to redevelopment of the site. 13.All four roadways serving the site are improved and considered in fair condition. 14.An existing 8-inch potable water main is along Bernard Street and the existing 6-inch main along Fannin Street will serve the site. 15.An existing 10-inch gravity main sewer line is available along Bernard Street which will serve the site. 16.Anticipated water demand is approximately 187.5 gallons per minute (GPM). 17.Anticipated wastewater demand is approximately 104.2 GPM. 18.Anticipated storm water demand is approximately 18 cubic feet per second (CFS). 19.Anticipated transportation demand is approximately 1,390 trips per day. 20.Extensions of existing facilities will not be required for redevelopment of the subject site, as proposed. Off-site improvements may be required if intensity of proposed future uses necessitates Planning and Zoning Commission Recommendations APPROVAL The Planning and Zoning Commission recommends of this rezoning request, subject to a restrictive Overlay district. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development IS CONSISTENT Review Committee finds that with the recommended conditions the request IS CONSISTENT with the surrounding land uses and general character of the area, with the IS CONSISTENT Denton Plan, and with the Denton Development Code. Based upon the findings-of-fact, the Development Review Committee (DRC) recommends APPROVAL ofthis rezoning request. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: DR-2; Multifamily DR-2; Multifamily DR-2; Multifamily West: Subject Property: East: DR-2; Multifamily DR-2; Six SFD structures and DC-G and DR-2; Commercial/Retail Accessory Structures Southwest: South: Southeast: DR-1; Single-family DC-N and DR-1; Multifamily and DR-2; Multifamily and Single- Single-family family Source: City of Denton Geographical Information System and site visit by City staff Comprehensive Plan: A.Consistency with Goals, Objectives and Strategies The Denton Development Code states the purpose of the Downtown University Core District as to encourage mixed use developments within specified commercial areas of the district. This district is pedestrian friendly. The purpose of Downtown University Core District is defined by the Denton Plan as: “Specified commercial areas of the Downtown University Core District should be places of great vitality, with a mix of education, residential, retail, office, service, government, cultural, and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn, and play in the same neighborhood. It includes different uses which may occur on each floor of the building.” The existing and proposed zoning districts are consistent with the Goals, Objectives and Strategies of the Denton Plan. B.Land use analysis The existing DR-2 district permit multifamily housing, but not at the desired density of approximately 101 dwelling units per acre. The closest zoning district in the Downtown University Core family of districts which permits the proposed use at the desired density is the DC-G. The applicant envisions a 5-story student housing development with structured parking beneath and retail and office space at ground level, an example of “vertically integrated mixed use.” Other approved developments under construction which feature vertical integration of uses include The Fry Street Village. The following charts illustrate new uses to be permitted either by-right, through Specific Use Approval (SUP) or with a limitation (L). Changes in permitted uses are highlighted in yellow. Residential Land Use DR-2 DC-G Categories AgricultureP P LivestockL(7) L(7) Single Family DwellingsPN Accessory Dwelling UnitsPN Attached Single Family P P Dwellings Dwellings Above BusinessesP P Live/Work UnitsP P DuplexesPN Community Homes For the PP Disabled Group HomesNSUP Multi-Family DwellingsL(5) L(5) Manufactured Housing N N Developments Commercial Land Use DR-2 DC-G Categories Home OccupationP P Sale of Products Grown on SiteN N HotelsNP MotelsN N Bed and BreakfastL(9) P Retail Sales and ServiceL(15) P Movie TheatersNSUP Restaurant or Private ClubNP Drive-through FacilityNSUP Professional Services and L(15) P Offices Quick Vehicle ServicingNSUP Vehicle RepairNSUP Auto and RV SalesNL(20) Laundry FacilitiesP P Equestrian FacilitiesN N Outdoor RecreationN N Indoor RecreationNP Major Event EntertainmentNSUP Commercial Parking LotsNL(28) Administrative or Research SUPP Facilities Broadcasting of Production SUPP Studio Sexually Oriented BusinessN N Temporary UsesL(38) L(38) DR-2 DC-G Industrial Land Use Categories Printing / PublishingNP BakeriesNP Manufacture of Non-odoriferous N N Foods Feed LotsN N Food ProcessingN N Light ManufacturingN N Heavy ManufacturingN N SUP/ Wholesale SalesN L(36) SUP/ Wholesale NurseriesN L(36) Distribution CenterN N Wholesale Storage and N N Distribution Self-service StorageN N Construction Materials SalesN N Junk Yards and Auto WreckingN N Wrecker Services and Impound N N Lots KennelsN N Veterinary ClinicsSUPP Sanitary Landfills, Commercial N N Incinerators, Transfer Stations SUPSUP Gas Wells L(27) L(27) Institutional Land Use DR-2 DC-G Categories Basic UtilitiesSUP SUP Community ServiceNP Parks and Open SpaceP P ChurchesP P Semi-public, Halls, Clubs, and P P Lodges Business / Trade SchoolNP Adult or Child Day CareP P Kindergarten, Elementary SchoolPN Middle SchoolPN High SchoolN N CollegesNP HospitalNP Elderly HousingNP Medical CentersSUPP CemeteriesN N MortuariesNP WECS (Free-standing Monopole SUP SUP Support Structure) WECS (Building-mounted)SUP SUP General Regulations DR-2 DC-G Minimum lot area (square feet)4,000 None Minimum lot width40 feet None Minimum lot depth80 feet None Minimum front yard setback10 feet None Minimum side yard6 feet None Minimum side yard adjacent to a 10 feet None street Minimum rear yard10 feet None 10 feet 20 feet plus 1 plus 1 foot for foot for eacheach Minimum yard abutting a single foot of foot of family use or districtbuildinbuildin gg heightheight overover 30 feet 30 feet Minimum residential unit size500 SF500 SF Maximum FAR0.75 3.0 Maximum density, dwelling units 30 150 per acre Maximum lot coverage75%85% Minimum landscaped area25%15% 100 Maximum building height45 feet feet/ L(33) 110 Maximum WECS height55 feet feet/ L(33) L(5) = Within this district the density of apartments will be calculated as one bedroom equating to .5 units. L(9) = All restrictions of L(8), but limited to no more than 15 guest units L(15) = Uses are limited to no more than 5,000 square feet of gross floor area per lot. An SUP is required for additional square footage for Semi-Public Halls, Clubs and Lodges L(20) = Permitted, but outdoor storage of autos prohibited. L(28) = Use allowed as part of consolidated parking plan. L (36) = Permitted when combined with retail sales. The proposed rezoning is compatible with the underlying future land use category and DDC. C.Future Land Use Allocation/Current Zoning District Allocation Subject Property Future land Use/Zoning allocation Change Based Upon 2.083 ± acres Current Allocation in the City Proposed Allocation Request Downtown 580.86 -2.083 acres 578.77 Residential 2 (DR-2) Downtown Commercial General 1,471.23 +2.083 acres 1,473.31 (DC-G) Source: City of Denton Nearest Fire, and EMS Station Approximate Distance From Name of Station Subject Property Fire/EMS Fire Station #3; 1204 McCormick Street 0.53 miles± Source: City of Denton GIS, Fire Department, and EMS This submittal has been reviewed for compliance with the 2006 International Fire Code and City Ordinance 2009-098, Section 29-2 Amendments to the Fire Code. The applicant is responsible for compliance with all applicable portions of the Fire Code and City Ordinances even in the absence of review comments. Water and Wastewater Demand and Capacity: A. Estimated Demand and Service Provider: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes 2.083 ± acres Proposed Demand or No) Permitted Density 100 DUs/acre N/A Peak Potable Water Consumption 187.5 Yes (GPM) Peak Wastewater 104.2 Yes Generation (GPM) B. Available Capacity: The water mains and sewer mains at this location have sufficient available capacities to accommodate the projected demands associated with the proposed development. However, there is not capacity in the sewer system to accommodate additional discharge beyond what is currently proposed for this development. Water is available from the existing 8-inch main along Bernard Street and the existing 6-inch main along Fannin Street. Sewer is available from the existing 10-inch gravity main along Bernard Street. C. Planned Capital Improvements Projects (CIP): Currently there are no CIP planned for this area. Roadways/Transportation Network: A. Estimated Demand: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes 2.083 + acres Potential Demand or No) Permitted Density 209 Yes Average Annual 1,390 Yes Daily Trips (AADT) PM Peak Hour Trips 140 Yes B. Available Capacity: The current street network has the capacity to accommodate the transportation needs from this development. However, depending on the type of development, additional off-site improvements may be warranted (i.e. turn lanes, signal cost participation, etc.). C. Roadway Conditions: Eagle, Bernard, Beatty and Fannin Streets are classified as improved perimeter streets. D. CIP Planned Improvements: There are no planned CIP Improvement projects in this area. Environmental Conditions: A. Environmentally Sensitive Areas: There are no ESAs located on the subject site. Wells (Public/Private): Public or private potable water wells are not proposed for the site. The existing development is connected to City water. Airports: The subject site is not within the boundaries of the Denton Municipal Airport Overlay District. Electric: Denton Municipal Electric (DME) has existing overhead facilities on the subject property with sufficient capacity to support future growth. Park Facilities: There are no neighborhood parks within a ½ mile radius of this project. The closest parks are Quakertown Park which features a civic center, swimming pool, library, and playground and is approximately 5,200 feet to the northeast, Denia Park which features a recreation center, athletic fields and playground approximately 5,800 feet to the south, Owsley Park approximately 5,900 feet to the northwest and McKenna Park approximately 7,000 feet to the northwest. Comments from other Departments: N/A. Exhibit 2 Site Location/Aerial Map Subject Site Exhibit 3 Existing Zoning Map Subject Site Exhibit 4 Proposed Zoning Map Subject Site Exhibit 5 Future Land Use Map Subject Site Exhibit 6 Letter from the Applicant Exhibit 7 Site Photos Facing West towards the Site Facing Northwest towards the Site Facing South towards the Site Facing Southwest towards Site Facing Southwest towards Site Facing South towards the Site Facing Southeast towards the Site Facing Southeast towards Site Facing East towards Site Facing East towards Site Facing North towards Site Exhibit 8 Notice of Public Hearing Responses Twenty-six (26) public notices were sent to residents within 200 feet of the site. As of this writing, staff has received four responses to the Notice of Public Hearing from property owners within this boundary area; one in favor of the request and three in opposition. The response in favor is from a property owner within the project boundary and is not counted. Public Notification Date: August 12, 2011 In Opposition: 3 In Favor: 1 Neutral: 0 MINUTES PLANNING AND ZONING COMMISSION August 24, 2011 After determining that a quorum was present, the Planning and Zoning Commission convened a Wednesday, August 24, 2011 at 5:47 p.m. Work Session on in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which time the following items were considered: PRESENT: Chairman Jay Thomas: Commissioners: Devin Taylor, Frank Conner, Brian Bentley, Thom Reece, Jean Schaake and Patrice Lyke. ABSENT: None. STAFF: Mark Cunningham, Aaron Leal, Chuck Russell, Jennifer Coles, Nana Appiah, PS Arora, Erica Marohnic, Nona Elaine Muncie, Angie Kralik, Cindy Jackson and Fred Greene. WORK SESSION Chairman Thomas opened the Work Session at 5:47 p.m. 1. Clarification of agenda items listed in the Regular Session agenda for this meeting, and discussion of issues not briefed in the written backup materials. Russell stated that staff is requesting that item 3A on the agenda be considered individually and called PS Arora to address the item. Arora stated that item 3A on the agenda is from Robson Ranch. Arora stated that the Water Department has been trying to work with the Robson Ranch developers for the last five years to install some improvements into the system and dedicate a property for the section of the elevation storage tank. There are currently issues in the existing water supply for Robson Ranch. Arora indicated on a map the location of a ground storage tank along John Payne Road to the east and a 20 inch water line that runs underneath Interstate 35 west to serve the Robson Ranch Community. The system that was constructed was to feed the ground storage tank and it is not adequate to serve the entire Robson Ranch Development. There is also a 20 inch water line that was constructed in 2000 along Highway 377 in joint partnership with the Country Lake Estates Development. The City is committed to provide full water service for that development. There are other developments along Highway 377 that utilize this service as well. Arora continued that the Robson Ranch developers knew all along there would not be enough water from the 20 inch water line to sustain the entire development. In the Robson Ranch Master Plan in 1999-2000 there should be an elevated storage tank. The City will construct the storage tank if Robson Ranch will dedicate the property. The property for this has not yet been dedicated. Once the property is dedicated, Arora stated it could take up to three years to design and construct the storage tank. Thomas questioned if that pending storage tank would be 1 exclusively on the Robson Ranch property. Arora responded that it would be when the property is dedicated. Once the property is dedicated it will trigger fees that the Robson Ranch developers would have to pay into. Arora provided a list of outstanding water service issues that Robson Ranch must address before any additional projects are approved on that site. Arora stated that by not approving or tabling this request it would stop any further development at Robson Ranch until the outstanding water service issues have been addressed. The list of outstanding items included: updating the Robson Ranch Water Usage Master Plan (the original plan was based on low usage in another state, the actual Robson Ranch water usage is higher), design a new water usage model applicable to the area and add a design for a 24 inch or 30 inch water service line. Thomas stated that from the presentation it is apparent that the denial of this request is the only leverage the City has to impede future development until the water issues are settled. Arora confirmed this and stated that representatives from the Robson Ranch developers would be meeting with City staff the next morning to discuss the outstanding issues. With no additional questions from the Commission on this topic Chairman Thomas questioned if any additional clarifications were needed on other items on the agenda. Bentley stated he had more of a concern than clarification on item 4B. Bentley stated he would like to table the item until more finite site plans have been established to consider re-zoning the property. Thomas stated that would need to be discussed in the Regular Meeting after the presentation. Taylor also stated, in relation to item 4B, that for his understanding of the process, the area that is along Eagle Drive between Carroll Boulevard and Interstate 35 is in the Comprehensive Plan as University Core; which allows for fairly high density development. There have been several requests before the Commission recently to request for a move to higher density. Taylor questioned if there is or would be a detail plan encompassing the University Core area. Cunningham responded that typically when there is a request to re-zone a property if it is within the same family of zoning districts and is cohesive with surrounding uses the staff will make a recommendation to re-zone the property unless it would be considered an isolated district or spot zoning. Cunningham stated that he did tend to agree that these requests have been coming in piece mill over the last couple of months and it would be beneficial for staff to look at a large scale re-zoning of the area. Taylor questioned if there was a timeline for this project. Cunningham stated it would be added to a list of current Commission requests and will be reviewed for its urgency, but will be addressed in a timely manner. Thomas questioned if at the next work session the Commission could receive an update on the status of items the Commission has requested staff to address ranked by priority. Cunningham confirmed it would be on the next work session. Chairman Thomas closed to Work Session at 6:02 p.m. 2 REGULAR MEETING After completing the Work Session, the Planning and Zoning Commission will convene a Regular Meeting of the Planning and Zoning Commission of the City of Denton, Texas which was held on Wednesday, August 24, 2011 and began at 6:42 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time the following items were considered: 1.PLEDGE OF ALLEGIANCE: A. U.S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas one state under God, one and indivisible." 2. CONSIDER APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES FOR: A. August 10, 2011 Bentley motioned approval of the minutes with a second by Reece. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Motion approved (7- 0). 3.CONSENT AGENDA: Staff recommends approval of the following items because they meet the requirements of the Denton Development Code. Approval of the Consent Agenda includes staff recommendations for approvals and authorizes staff to proceed. The Planning and Zoning Commission has reviewed the applications and has had an opportunity to raise questions regarding the items prior to consideration: A. Final Plat of Lots 1-A-X, 1A-16A, 21A-31A, 34-A-X, Block A, and Lots 1A-4A, 6A-11A, 16A, Block C of Section 7-1 of Robson Ranch Planned Development District (PD 173); being a replat of Lots 1-X, 1-16, 21-33, 34-X, Block A, and Lots 1-12,16, Block C of Section 7-1 of PD 173. The 9.70 acre site is located west of Ed Robson Boulevard and north of Robson Ranch Road. (FR11-0006, Robson Ranch Section 7-1, Nana Appiah) Commissioner Thomas stated that the Commission had been briefed on this item in the Work Session and requested a motion. Schaake moved approval of this item. Reece stated that the item should be moved to individual consideration for additional staff information. Motion failed with no second. Reece motioned move the request to an Item for Individual Consideration with a second by Lyke. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Motion approved (7-0). 3 ITEMS FOR INDIVIDUAL CONSIDERATION A. Final Plat of Lots 1-A-X, 1A-16A, 21A-31A, 34-A-X, Block A, and Lots 1A-4A, 6A-11A, 16A, Block C of Section 7-1 of Robson Ranch Planned Development District (PD 173); being a replat of Lots 1-X, 1-16, 21-33, 34-X, Block A, and Lots 1-12,16, Block C of Section 7-1 of PD 173. The 9.70 acre site is located west of Ed Robson Boulevard and north of Robson Ranch Road. (FR11-0006, Robson Ranch Section 7-1, Nana Appiah) Arora presented the information from the Work Session and stated that the Water Department is recommending denial of this application. Thomas stated that he did not feel that it was the ial water shortage in this instance that could affect fire protection and other users not in Robson Ranch. Arora confirmed this. Reece motioned to post pone this item to a date certain of the first Planning and Zoning Commission meeting in February of 2012 with a second by Bentley. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Motion passes (7-0). 4. PUBLIC HEARINGS: A. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 10.49 acres of land from a Rural Residential 5 (RD-5) zoning district to an Industrial Center General (IC-G) zoning district. The subject property is located on the east side of South Mayhill Road, approximately 468 feet south of Morse Street. (Z11-0011, Pecan Orchard, Cindy Jackson) Jackson stated that the site is comprised of three tracts of land that were a part of the Donut Hole 7 (DH7) annexation in May 2010. The site was developed when it was annexed into the City and uses present on the site are: an office/warehouse facility; self serve storage units; and storage/parking for RVs, boats and vehicles. When the area was annexed it was given a place holder zoning of Rural District 5 (Rural Residential). The Industrial Center General (IC-G) zoning district is compatible with the future land use. Notices were sent to property owners within 200 feet and 500 feet of the subject site and no responses were received in favor, opposition or neutral to the request. The Development Review Committee recommends approval. The applicant was present to speak, but did not have anything to add. No one spoke in favor or opposition of the request. Schaake moved approval of this request with a second by Reece. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", Commissioner Jay Thomas "aye", and Commissioner Brian Bentley "aye". Motion approved (7- 0). 4 B. Hold a public hearing and consider making a recommendation to City Council regarding the rezoning of approximately 2.083 acres of land from a Downtown Residential 2 (DR-2) zoning district to a Downtown Commercial General (DC-G) zoning district. The property is located south of Eagle Drive, west of Bernard Street, east of Beatty Street and north of Fannin Street. (Z11-0016, Crosswinds Village, Erica Marohnic) Marohnic provided a location map, zoning map and map of the location in relation to the University of North Texas (UNT). The site is currently zoned Downtown Residential 2 (DR-2) and the applicant is proposing a zoning change to Downtown Commercial General (DC-G) to allow for higher density. Marohnic then presented a zoning map that indicated that to the east of the subject site there is a property currently zoned DC-G and a land use map that indicated several surrounding multi-family properties. There is one single-family property located to the south of the subject site. The future land use map shows that the property is Downtown University Core and the proposed zoning is compatible. The staff report for this project indicates that the ground floor of the proposed project for this site would be ground level retail and office space with residential above. That is inaccurate. The only office will be the office for the complex. Marohnic provided a comparison of allowable uses and density between the two zoning districts and site photos of the surrounding uses. On the property notification map Marohnic noted that there are more single family uses to the north of the property, though they are not adjacent to the actual subject site. There were 25 notices sent certified mail to property owners within 200 feet of the subject site and 123 courtesy notices were mailed to property owners within 500 feet of the subject site. Three notices were received in opposition and one notice was received in favor of the request. Notices were received up until the day of the presentation and Marohnic stated she was not sure of the percentage of opposition and if a supermajority vote would be required. It appears that the opposition is more than 20% of the surrounding properties, but this could not be immediately verified. The Development Review Committee recommends approval of this request and the olor is represented, but it is indicated that there was one property in favor of the request. Marohnic stated that the in favor notice was from a property owner within the subject site boundary and could not be indicated on the map. Schaake questioned if the opposition, indicated in red, were current surrounding multi-family units. Marohnic stated that there is one single family use that is in opposition directly to the south of the subject site and the rest of the red are multi-family uses. Todd Thomas, 7611 Apple Cross, Cross Wind Development Doug Huffman, 3121 Overlook Circle Todd Thomas and Huffman presented proposed elevations for the property if the rezoning request is approved and highlighted the proposed features of the property. The property would be 6 stories total with 1 level of parking below grade. Todd Thomas noted that the proposed project would have a significant increase in value on the tax rolls. 5 Schaake questioned the location of the proposed entrance to the underground parking would be. Todd Thomas stated that the entrance would be off of Bernard Street and another exit only onto Beatty Street. Huffman noted the increase the tax rolls as well as impact fees that would be paid to the City and improvements that would be made surrounding the property. Taylor stated that there 599 proposed parking spaces with the goal that this property would be a walkable development. Taylor questioned if there were any food establishments, jobs or entertainment venues within walking distance of the property. Huffman responded that there is a store and a bar within the surrounding area, but the property will also have a coffee bar, swimming pool, game room and several entertainment amenities. Huffman also noted that a development of this size is usually spanned on about 15 to 20 acres, from a LEEDS (Leadership in Energy and Environmental Design) perspective it is huge to develop this type of a property on a site of this scale. The location is convenient to UNT to allow for residents to walk to campus. Taylor stated that other than a cash and carry convenience store and a bar, there are no other retail amenities within walking distance of the location. Alex Payne, 1517 Center Place Drive Payne stated that the location is also within walking distance to Carriage Square where there is a club, restaurants and retail stores. There is also a bus stop along Bernard and Eagle. Lyke referred back to Huffman and Todd Thomas that it was indicated that the development was LEED friendly and questioned if this was going to be a LEED development. Huffman stated that there is not a certification to the best of his knowledge for multi-family. Huffman was also questioned on the total height of the proposed development since there would be some subterranean levels. Huffman stated that the height would not exceed 65 feet which would constitute high rise construction in the City and set in motion higher building costs. Taylor questioned staff if in the DC-G if there is a setback requirement based on height. Marohnic responded that there is a requirement as it relates to the location of the building to a single family use. Marohnic stated that there is discussion with staff currently as to the slope and how that is measured if it is to the single family use itself or to the property line. There was one person is support to speak and one person in support who did not wish to speak. Speaking in support: Alex Payne, 1517 Center Place Drive Speaking in opposition: Matt Goble, Denton Green Investors, 814 Bernard, 910 Eagle Drive, 1003 Eagle Drive, 1111 Eagle Drive. Bill Bennett, Denton Green Investors, 814 Bernard, 910 Eagle Drive, 1003 Eagle Drive, 1111 Eagle Drive. 6 The applicant returned for rebuttle. Todd Thomas stated that per the recommendation of staff, his company did host neighborhood meetings to detail the proposal for the site and no one showed up to the meetings. Todd Thomas also stated that the proposal is nothing new to the area, there are several large student housing complexes within the City and the height and usage is appropriate for the neighborhood. Todd Thomas also addressed a concern from the opposition of drainage and flooding stating that they are meeting with all City requirements including on site underground storage of run-off. Schaake moved approval of the request with a second by Frank Conner. Lyke questioned if the outer solitary portion of the development on the south end that looks like a finger, if there was any intention of access from the side street to that location. Todd Thomas responded that all access would be coming through the garage area. There was additional discussion among the Commission regarding if additional restrictions could be added with the approval of the zoning. Leal stated that the heights and setbacks of the structure would be proper as overlay, however, the number of units or beds allowable would not be applicable. Schaake added the restriction of the height as presented in the proposed elevations to her motion with a second by Conner. Bentley added to the discussion that he believes that the item should be tabled until a more finite site plan is developed and presented with the alternative development plan that is intended to come forward next on the project. Bentley noted there have been cases where the zoning was approved based on a proposed project then that project is altered or a different project comes through that is not what the Commission intended to be developed when the zoning change is recommended. Bentley stated he would like to off an additional motion to table this item until the ADP is submitted to tie the site plan to the zoning change. Leal stated that there was an active motion on the floor and the person who made that motion would have to agree or wan The Commission ensued into a discussion over blanket zoning and all of the allowable uses in the DC-G zoning district. Cunningham stated that the zoning change request cannot be tied to an alternative development plan because the site may not require one. Cunningham detailed the process of a zoning change request and that all allowable uses defined in the Denton Development Code would be allowable unless restrictions are placed on it during the request. Huffman stated that the applicant is very willing to add the 65 feet height restriction to the zoning change request. Schaake restated her motion to approve with the restriction of a building height of 65 feet with a second by Conner. On roll call vote: Commissioner Jean Schaake "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", Commissioner Devin Taylor "aye", Commissioner Frank Conner "aye", and Commissioner Jay Thomas "aye". Commissioner Brian Bentley "nay". Motion approved (6-1). 7 5. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. Lyke noted her concern with the previous case with recommending approval of a re-zoning without a site plan. Lyke also stated that she wished there was a mechanism in place to tie a site plan to a zoning change request so that the two projects could travel through the process in harmony. Cunningham noted that it would be difficult to tie the two together and proposed an instance where the site plan requirements were not met and what authority would the City have besides revoking the zoning. The City does not have the staff currently to ensure that the site plan was carried out as approved and it would be difficult or impossible to revoke an approved zoning based on a site plan. Leal noted experience in different states and areas stating it is always a challenge to isolate a zoning change request from the proposed project on that site if the zoning change is approved. The Commission must isolate the zoning from the request and consider if that property is re- zoned to the requested district if it would be in harmony with the area, the surrounding uses and the future development plans of the City. Taylor noted concerns that the current Comprehensive Plan stops at 10,000 feet for the surrounding area and the zoning of the corridors surrounding UNT. Russell stated that there is a tool for the site plan to be tied the project; it is a Specific Use Permit (SUP). An SUP restriction on certain uses would allow for further study and a site plan before that use would be allowed. An SUP is an overlay on top of the base zoning that does require a site plan. Commission discussion continued on concerns of zoning designations that would be cohesive with the area and encourage diverse development that would support higher density multi-family housing. Cunningham stated that staff will review the concerns noted and add it to the on-going list of issues to be addressed. The on-going list of issues will be addressed at the next Planning and Zoning Commission Work Session. Chairman Thomas adjourned the meeting at 8:30 p.m. 8 E.LEGALDESCRIPTION FORCROSSWINDPROPERTY (FOR 2.083 ACRES OFREALPROPERTY) ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATE SURVEY, ABSTRACT NUMBER 996, CITY OF DENTON, DENTON COUNTY, TEXA 1 AND 2, BLOCK 5, WATTAM ADDITION, AN ADDITION TO THE CITY OF DENTON, D TEXAS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 86, PAGE DENTON COUNTY, TEXAS, PART OF LOT 1 AND ALL OF LOT 2, BLOCK 1, H ADDITION TO THE CITY OF DENTON, DENTON COUNTY, TEXAS, ACCORDING TO THE PL RECORDED IN VOLUME 1, PAGE 13, PLAT RECORDS, DENTON COUNTY, TEXA PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT AN 1/2 INCH IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" SET AT THE NORTHEAST CORNER OF SAID LOT 2, BLOCK 5, WATTAM ADDITION, NORTHEAST CORNER OF A TRACT DESCRIBED IN A DEED TO JACKIE WAYNE VOLUME 3205, PAGE 265, REAL PROPERTY RECORDS, DENTON COUNTY, TEX, SAID PIN ALSO BEING AT THE INTERSECTION OF THE SOUTH LINE OF EAGLE DRIVE AND THE WEST L THENCE SOUTH 00 DEGREES 27 MINUTES 43 SECONDS EAST WITH THE EAST 5, WATTAM ADDITION AND THE EAST LINE OF SAID GEORGE TRACT, A DISTANCE 138.14 FEET TO A 1/2 INCH IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" CORNER OF SAID LOT 2, BLOCK 5, WATTAM ADDITION ON THE WEST LINE THENCE SOUTH 88 DEGREES 48 MINUTES 22 SECONDS WEST, A DISTANCE OF 124.99 FEET TO 1/2 INCH IRON PIN FOUND AT THE NORTHWEST CORNER OF LOT 1A, BLOCK 5, W.H. ADDITION TO THE CITY OF DENTON, DENTON COUNTY, TEXAS, ACCORDING RECORDED IN CABINET L, PAGE 310, PLAT RECORDS, DENTON COUNTY, TEXAS AND THE EAST LINE OF A TRACT DESCRIBED IN A DEED TO JACKIE WAYNE GEORGE, RECORDED UNDER 2005-138984, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE SOUTH 00 DEGREES 38 MINUTES 09 SECONDS EAST WITH THE WEST OF SAID LOT 1A, BLOCK 5, A DISTANCE OF 58.41 FEET TO A 1/2 INCH IRON PIN WITH A "METROPLEX 1849" SET ON THE SOUTHWEST CORNER OF SAID LOT 1A, BLO CORNER OF A TRACT DESCRIBED IN A DEED TO JACKIE WAYNE GEORGE, RECORDED UNDER DOCUMENT NUMBER 2005-138986, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 89 DEGREES 50 MINUTES 28 SECONDS WEST, A DISTANCE O INCH IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"RTHEAST CORNER OF SAID LOT 2, BLOCK 1, HILLSIDE ADDITION AND THE SOUTH L WATTAM ADDITION, SAID PIN ALSO BEING AT THE NORTHWEST CORNER EOF-A, BLOCK 1, HILLSIDE ADDITION, AN ADDITION TO THE CITY OF DENTON, DENTON COTEXAS, ACCORDING TO THE PLAT THEREOF RECORDED IN CABINET C, PAGE 198, PLAT RECORDS, THENCE SOUTH 00 DEGREES 27 MINUTES 00 SECONDS WEST WITH THE EAST 1, HILLSIDE ADDITION AND THE WEST LINE OF SAID 4-A, BLOCK 1, HILLSIDE ADDITION, A DISTANCEOF 200.00 FEET TO A 1/2 INCH IRON PIN WITH A YELLOW PLASTIC CAP STA AT THE SOUTHEAST CORNER OF SAID LOT 2, BLOCK 1, HILLSIDE ADDITIO CORNER OF SAID LOT 4-A, BLOCK 1, HILLSIDE ADDITION, SAID PIN ALSO BEING ON THE NORTH LINE OF FANNIN STREET; THENCE NORTH 89 DEGREES 50 MINUTES 18 SECONDS WEST WITH THE SOUT BLOCK 1, HILLSIDE ADDITION AND THE NORTH LINE OF FANNIN STREET, AN X IN CONCRETE SET AT THE SOUTHWEST CORNER OF SAID LOT 2, BLOCK 1, HILLSIDE ADD SOUTHEAST CORNER OF SAID LOT 1, BLOCK 1, HILLSIDE ADDITION, AND TRACT DESCRIBED IN A DEED TO MICHAEL L. VOGEL AND HELENA H.F. MA-VOGEL, RECORDED UNDER DOCUMENT NUMBER 2006-95751, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, SAID PIN ALS BEING ON THE NORTH LINE OF FANNIN STREET; THENCE NORTH 00 DEGREES 27 MINUTES 00 SECONDS EAST WITH THE WEST 1, HILLSIDE ADDITION AND THE EAST LINE OF SAID LOT 1, BLOCK 1, HILLSIDE ADDITION AND VOGEL TRACT, A DISTANCE OF 150.00 FEET TO A 1/2 INCH IRON PIN WITH A Y "METROPLEX 1849" SET ON THE WEST LINE OF SAID LOT 2, BLOCK 1, HI LINE OF SAID LOT, BLOCK 1, HILLSIDE ADDITION, SAID PIN ALSO BEING AT THE NORTHEAST SAID VOGEL TRACT AND THE SOUTHEAST CORNER OF A CALLED TRACT TWO DONALD GASTON, RECORDED UNDER COUNTY CLERK'S FILE NUMBER 96-R0036204, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 89 DEGREES 50 MINUTES 18 SECONDS WEST WITH THE SOUT TWO AND THE NORTH LINE OF SAID VOGEL TRACT, A DISTANCE OF 50.00 WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" SET AT THE SOUTHWEST CORNER OF SAID TRACT TWO AND THE NORTHWEST CORNER OF SAID VOGEL TRACT AND BEING SAID LOT 1, BLOCK 1, HILLSIDE ADDITION, SAID PIN ALSO BEING ON T THENCE NORTH 00 DEGREES 27 MINUTES 00 SECONDS EAST WITH THE WEST LINE OF SAID LOT 1, BLOCK 1, HILLSIDE ADDITION AND THE WEST LINE OF SAID TRACT TWO, A DIST INCH IRON PIN FOUND AT THE NORTHWEST CORNER OF SAID TRACT TWO AN CORNER OF SAID LOT 1, BLOCK 1, HILLSIDE ADDITION, SAID PIN ALSO BEING ON THE EAST LINE OF BEATTY STREET; THENCE SOUTH 89 DEGREES 50 MINUTES 18 SECONDS EAST WITH THE NORT AND THE NORTH LINE OF SAID LOT 1, BLOCK 1, HILLSIDE ADDITION, A INCH IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" SET SAID TRACT TWO, THE NORTH LINE OF SAID LOT 1, BLOCK 1, HILLSIDE CORNER OF SAID LOT 2, BLOCK 5, WATTAM ADDITION, SAID PIN ALSO BETHWEST CORNER OF A TRACT DESCRIBED IN A DEED TO GASTON PROPERTIES, LLC, DOCUMENT NUMBER 2005-142299, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE NORTH 00 DEGREES 05 MINUTES 55 SECONDS WEST WITH THE WEST BLOCK 5, WATTAM ADDITION, A DISTANCE OF 201.33 FEET TO A 1/2 INCH IRON PI PLASTIC CAP STAMPED "METROPLEX 1849" SET AT THE NORTHWEST CORNER WATTAM ADDITION AND THE NORTHWEST CORNER OF A TRACT DESCRIBED IN RECORDED IN VOLUME 4859, PAGE 3917, REAL PROPERTY RECORDS, DENTON ALSO BEING AT THE INTERSECTION OF THE EAST LINE OF BEATTY STREET EAGLE DRIVE; THENCE SOUTH 89 DEGREES 35 MINUTES 36 SECONDS EAST WITH THE NORTH LINE OF SAID BLOCK 5, WATTAM ADDITION AND THE SOUTH LINE OF EAGLE DRIVE, A DISTANCE OF OF BEGINNING AND CONTAINING IN ALL 2.083 ACRES OF LAND. AGENDA INFORMATION SHEET AGENDA DATE: September 20, 2011 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECTPecan Orchard (Z11-0011) Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from Rural Residential 5 (RD-5) zoning district classification and use designation to Industrial Center General (IC-G) zoning district classification and use designation, on 10.49 acres, located on the east side of South Mayhill Road, approximately 468 feet south of Morse Street, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. (Z11-0011) (The Planning and Zoning Commission recommends approval 7-0.) BACKGROUND The applicant, Lydia Wong (Pecan Orchard Park/Storage Zone), is requesting the rezoning of the subject property in order to bring the current uses of the site into conformance with the Denton Development Code. The site is comprised of three (3) tracts of land which were a part of DH-11, an area which was recently annexed into the City. The uses currently existing on site include an office/warehouse facility, self serve storage units, and storage/parking for RVs, boats and vehicles. The proposed IC-G zoning district permits the exiting uses and is compatible with the use of the land and the surrounding area. It is staff opinion that this requested zoning district is appropriate at this location. The site was annexed into the City in May of 2010 as a part of DH-11. The property is not platted and was developed prior to annexation into the city. The applicant held a neighborhood meeting on August 12, 2011, to which he sent notices out to all property owners located within 500 feet. None of the noticed property owners attended the meeting. Seven (7) public notices were sent to property owners within 200 feet of the subject site (Exhibit 6). Ten (10) courtesy notices were also sent to residents within 500 feet of this proposal. As of this writing, staff has not received any responses to the Notice of Public Hearing from property owners within this boundary area. OPTIONS 1.Approve as submitted. 2.Approve subject to conditions. 3.Deny. 4.Postpone consideration. 5.Table the item RECOMMENDATION APPROVAL The Planning and Zoning Commission recommended of this application with a vote of 7-0. APPROVAL The Development Review Committee recommends of this rezoning request. PRIOR ACTION/REVIEW May 2010, site was annexed into the City. EXHIBITS 1.Staff Report 2.Site Location/Aerial Map 3.Existing Zoning Map 4.Proposed Zoning Map 5.Future Land Use Map 6.Letter from the Applicant 7.Notification Map 8.Site Photos 9.Planning and Zoning Commission Draft Minutes 10.Ordinance Prepared by: Cindy Jackson, AICP Senior Planner Respectfully submitted: Mark A. Cunningham, AICP, CPM Planning and Development Director EXHIBIT 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 24, 2011 TYPE: Rezoning CC Date: September 20, 2011 PROJECT #:Z11-0011 Project Number: Z11-0011 Request: 10.49± acres of land from a Rural Residential 5 (RD-5) zoning district to an Industrial Center General (IC-G) zoning. Applicant: Lydia Wong Pecan Orchard Park/Storage Zone 621 W College Street Grapevine, TX 76051 Property Owners: Kukahi Corporate Solutions/Shir AI Group 621 W College Street Grapevine, TX 76051 Location: The subject property is located on the East side of South Mayhill Road, approximately 468 feet south of Morse Street. Size: 10.49± acres Zoning Designation: Rural Residential 5 (RD-5) Future Land Use: Industrial Center Case Planner: Cindy Jackson, AICP DRC Recommendation: The Development Review Committee (DRC) recommends APPROVAL of Z11-0011. Summary of Analysis: The applicant is requesting to rezone the property from the RD-5 zoning district to the IC-G zoning district in order to bring the uses on the site into compliance with the site zoning designation. When the site was annexed into the city, it was given a zoning designation of RD-5. This is considered to be a “place holder” zoning designation in that the site is not considered to be zoned until the property owner submits an application to zone the site. Until such an application is submitted, only new uses which are available to the property owner are those uses permitted in the RD-5 district. The applicant does not plan any additional development on the site. DRC Findings/Recommendation Page 1 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM The underlying future land use designation of Industrial Center is consistent with the requested zoning district designation. The majority of the property to the North is undeveloped, as well as the property located to East and West. A small area to the north, located along Mayhill Road, has small buildings stored on it. The property to the south is developed with a single family residence with a very large metal building located behind (east) of it. Findings of Fact 1.The site is designated as IndustrialCenter on the Future Land Use Map. The Denton Plan states that “Industrial centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations.” 2.The Industrial Centers zoning districts are meant for “locations for a variety of work processes and employment such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations.” 3.The subject site is not located within any overlay or historic districts. 4.Plans for widening Mayhill Road are currently being designed. 5.Mayhill Road is classified as a Primary Major Arterial on the Mobility Roadway Plan. 6.The site is developed with an office/warehouse facility, self serve storage units, and storage/parking for RVs, boats and vehicles. 7.The sites to the north, south and east were also recently annexed and given the placeholder zoning designation of Rural Residential 5 (RD-5). An area which is zoned Industrial Center General zoning district is located approximately 135 feet south of the subject site. The zoning of the property to the south remains RD-5 as the owner of that property has not submitted an application to rezone it.Both the Employment Center Commercial (EC-C) district and the Employment Center General (EC-G) districts are located on the west side of the site. 8.Properties R335352 and R335353 are adjacent to undeveloped floodplain and stream buffer environmentally sensitive areas (ESAs). The existing parking areas might be encroaching already into floodplain and stream buffer ESAs. Areas designated as such are regulated by Sections 35.17.7 and 35.17.8 of the Denton Development Code (DDC). No structures, among other uses, will be allowed in these areas unless a field assessment is performed and no characteristics typical of undeveloped floodplains and stream buffers are found. An Environmentally Sensitive Area Review, per Section 35.17.4, will be required prior to any land disturbance activities within or in close proximity of the stream buffer ESAs, if ESA is confirmed. 9.There are revised FEMA maps dated April 18, 2011 that have been adopted by the City. 10.The nearest City potable water main is an existing 8-inch main along Mayhill Road. The nearest City sewer main is from the existing 8-inch gravity main along Mayhill Road. DRC Findings/Recommendation Page 2 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM 11.Other information stated by DRC. A.Anticipated water demand: 35.4 GPM (peak) (domestic only; not counting fire or irrigation) B.Anticipated wastewater demand. 30.1 GPM (peak) Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development IS CONSISTENT Review Committee finds that the request with the surrounding land uses and IS CONSISTENTIS CONSISTENT general character of the area, with the Denton Plan, and with the Denton Development Code. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: North: Northwest: Northeast: RD-5 RD-5 and EC-I RD-5 Small building storage and undeveloped undeveloped undeveloped Subject Property: West: East: RD-5 EC-C and EC-I Office/warehouse, self serve storage RD-5 undeveloped facility, outdoor storage of RVs, undeveloped boats and vehicles. South: Southwest:Southeast: RD-5 EC-CRD-5 Single family residence and metal Undeveloped undeveloped building Source: City of Denton Geographical Information System and site visit by City staff Comprehensive Plan: A.Consistency with Goals, Objectives and Strategies The subject site is located in the “Industrial Centers” future land use designation. The Industrial Centers land use designation are meant for “locations for a variety of work processes and employment such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations.”. The DRC Findings/Recommendation Page 3 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM uses on this site, office/warehouse, self serve warehousing and outdoor storage are consistent with the future land use designation and therefore the Denton Plan. B.Land Use Analysis: The applicant is proposing to rezone the site to the IC-G district to bring the current land uses on the site into compliance with the zoning designation. The applicant is not proposing to change the uses on the site or add any new development. Given the office, warehouse and outdoor storage uses present on the site, the proposed IC-G district is an appropriate zoning designation for this site. The following tables illustrate the uses permitted in the requested IC-G district: Residential Land Use Categories IC-G Agriculture P Livestock L(7) Single Family Dwellings N Accessory Dwelling Units N Attached Single Family Dwellings N Dwellings Above Businesses N Live/Work Units N Duplexes N Community Homes For the Disabled N Group Homes N Multi-Family Dwellings N Manufactured Housing Developments N P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 DRC Findings/Recommendation Page 4 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM Commercial Land Use Categories IC-G Home Occupation N Sale of Products Grown on Site N Hotels N Motels N Bed and Breakfast N Retail Sales and Service L(18) Movie Theaters N Restaurant or Private Club L(22) Drive-through Facility L(14) Professional Services and Offices P Quick Vehicle Servicing P Vehicle Repair P Auto and RV Sales P Laundry Facilities P Equestrian Facilities N Outdoor Recreation N Indoor Recreation N Major Event Entertainment N Commercial Parking Lots P Administrative or Research Facilities P Broadcasting of Production Studio P SUP / Sexually Oriented Business L(32) Temporary Uses L(38) P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 DRC Findings/Recommendation Page 5 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM Industrial Land Use Categories IC-G Printing / Publishing L(25) Bakeries P Manufacture of Non-odoriferous Foods P Feed Lots N Food Processing P Light Manufacturing P Heavy Manufacturing SUP Wholesale Sales P Wholesale Nurseries P Distribution Center P Wholesale Storage and Distribution P Self-service Storage P Construction Materials Sales P Junk Yards and Auto Wrecking SUP Wrecker Services and Impound Lots L(29) Kennels N Veterinary Clinics N Sanitary Landfills, Commercial Incinerators, SUP Transfer Stations Gas Wells L(27) P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 DRC Findings/Recommendation Page 6 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM Institutional Land Use Categories IC-G Basic Utilities P Community Service P Parks and Open Space P Churches P Semi-public, Halls, Clubs, and Lodges P Business / Trade School P Adult or Child Day Care N Kindergarten, Elementary School N Middle School N High School N Colleges N Hospital N Elderly Housing N Medical Centers N Cemeteries N Mortuaries N WECS (Free-standing Monopole Support SUP Structure) WECS (Building-mounted) SUP P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 DRC Findings/Recommendation Page 7 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM General Regulations IC-G Minimum lot area (square feet) 5,000 Minimum lot width 50 feet Minimum lot depth 50 feet Minimum front yard setback 10 feet Minimum side yard 6 feet Minimum side yard adjacent to a street 10 feet 30 feet, plus 1 foot for each foot Minimum yard when abutting a residential use of or district building height above 30 feet Maximum FAR 0.40 Maximum lot coverage 90% Minimum landscaped area 10% Maximum building height 140 feet Maximum WECS height 150 feet Limitations L(7) = Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area L(18) = Uses are permitted only in association with Gas Stations and are limited to no more than 5,000 square feet of gross floor area except adjacent to I-35 then uses are limited to 10,000 square feet of gross floor area. L(22) = Uses are permitted only in association with Gas Stations and are limited to no more than 25 seats except adjacent to I-35 then the number of seats is limited to 50 L(25) = If proposed use is within 200 feet of a residential zone, approval is subject to a Specific Use Permit L(27) = Must comply with the provisions of Subchapter 89, Gas Well Drilling and Production L(29) = Wrecker Services and Impound Lots must comply with the following provisions: 1.The subject lot shall comply with the provisions of the Texas Administrative Code, regarding Vehicle Storage Facilities. 2.Lot Screening: All stored vehicles shall be opaquely screened from all rights-of- way and residential uses and zoning districts. DRC Findings/Recommendation Page 8 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM 3.Parking and vehicle storage areas associated with wrecker services and impound lots activities are not allowed within undeveloped floodplain, water-related habitat, and riparian buffer environmentally sensitive areas (ESA). 4.Best management practices addressing storm water quality must be implemented and maintained on site. Management practices must attain the pollutant removal capabilities recommended for parking areas in the Integrated Storm Water Management (iSWM) manual, as published by the North Central Texas Council of Governments, or similar practices consistent with low impact development (LID) approaches. L (32) = Not allowed to locate adjacent to an arterial and within 1,000 feet as measured from the nearest property line of a sexually oriented business to the nearest property line of any other sexually oriented business, adult or child daycare, any elderly housing facility, hospital, any residential use, public open space. L(38) = Must meet the requirements of Section 35.12.9. B.Current Zoning District Allocation Subject Property Future land Use/Zoning allocation Change Based Upon Current Allocation in the City Developed Allocation 10.494 ± acres Request Industrial Center 3,515.57 acres 16.2 acres + 10.494 General Source: City of Denton Fire Project narrative describes the existing buildings and property as “grand-fathered”. With respect to the adopted Fire Code, if existing occupancies do not change use or additions constructed, they will be considered legal non-conforming as annexed. However, if there is a change of use or occupancy or additions, the space, building and land may be required to comply with the currently adopted Fire Code. The applicant is directed to contact the Planning Dept, Building Dept. and Fire Prevention Section prior to the use of any of the existing property and buildings. Water and Wastewater Demand and Capacity: A. Estimated Demand and Service Provider: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes Proposed Demand 10.49 ± acres or No) Permitted Density n/a n/a Potable Water Consumption 35.4 gpm (peak) Yes (GPM) Wastewater 30.1 gpm (peak) Yes Generation (GPM) B. Available Capacity: Water service is available from the existing 8-inch main along Mayhill Road. Sewer service is available from the existing 8-inch gravity main along Mayhill Road. DRC Findings/Recommendation Page 9 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM C. CIP Planned Improvements: There are no planned public improvements for the water and sanitary sewer facilities serving the subject site. Roadways/Transportation Network: A. Estimated Demand: Subject PropertyEstimated Impact Analysis Adequate to Serve (Yes 10.49 ± acres Proposed Demand or No) Permitted Density n/an/a Average Annual 662Yes Daily Trips (AADT) PM Peak Hour Trips 91Yes B. Available Capacity: Mayhill Road currently has the capacity to accommodate this development. C. Roadway Conditions: Mayhill Road is classified as a Primary Major Arterial on the Mobility Roadway Plan. D. CIP Planned Improvements: The proposed development fronts Mayhill Road, a primary arterial, which is proposed to be expanded, and is currently in design as a CIP project. If any development is proposed prior to the proposed CIP project construction, construction of 28-feet wide concrete pavement, 5-foot wide sidewalk, curb and gutter, and required drainage improvements will be required along Mayhill Road frontage. Payment in lieu of construction will be required upon platting or development. Environmental Conditions: Properties R335352 and R335353 are adjacent to undeveloped floodplain and stream buffer environmentally sensitive areas (ESAs). The existing parking areas might be encroaching already into floodplain and stream buffer ESAs. Areas designated as such are regulated by Sections 35.17.7 and 35.17.8 of the Denton Development Code (DDC). No structures, among other uses, will be allowed in these areas unless a field assessment is performed and no characteristics typical of undeveloped floodplains and stream buffers are found. An Environmentally Sensitive Area Review, per Section 35.17.4, will be required prior to any land disturbance activities within or in close proximity of the stream buffer ESAs, if ESA is confirmed. DRC Findings/Recommendation Page 10 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM Electric: The existing transformer ID 9981 is not accessible to DME equipment for replacement. DME will require the customer to provide access to the transformer in the event of a transformer failure. Providing access could include removal of a portion of the building. Park Facilities: No Comment Comments from other Departments: N/A. DRC Findings/Recommendation Page 11 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 2 Site Location/Aerial Map DRC Findings/Recommendation Page 12 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 3 Zoning Map DRC Findings/Recommendation Page 13 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 4 Proposed Zoning Map DRC Findings/Recommendation Page 14 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 5 Future Land Use Map DRC Findings/Recommendation Page 15 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 6 Applicants Letter DRC Findings/Recommendation Page 16 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 7 Notification Map and Property Owner Responses Public Notification Date: 8/9/11 200Ô Legal Notices* sent via Certified Mail: 7 500Ô Courtesy Notices sent via Regular Mail: 10 Number of responses to 200Ô Legal Notice In Opposition: 0 In Favor: 0 Neutral: 0 DRC Findings/Recommendation Page 17 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 8 Site Photos North side of subject site adjacent to Mayhill Road Subject site looking east Property located to south of site, behind adjacent residence. Property located on north side of site. Property located on west side of site. Residence located to south of site DRC Findings/Recommendation Page 18 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 9 Planning and Zoning Commission DRAFT Minutes DRC Findings/Recommendation Page 19 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM EXHIBIT 10 Ordinance DRC Findings/Recommendation Page 20 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM DRC Findings/Recommendation Page 21 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM DRC Findings/Recommendation Page 22 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM DRC Findings/Recommendation Page 23 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM DRC Findings/Recommendation Page 24 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM DRC Findings/Recommendation Page 25 of 25 #: Z11-0011 Case 9/8/2011 3:39:02 PM