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HomeMy WebLinkAbout11-30-82 1 AO'T'1CL Ui; WORK SESSION - kLUULAk - SPECIAL CALUW - EMERGENCY MEETING O !'lil: City of Denton City Council OF THE CITY OF DENTON, TEXAS. Notice is hereby given that on the r 30th day of November iy _22, the oFie City of Denton, texas will hold a work session - regular - s ecia called - emergency meeting at 3:00 o'clock, •%T• m., in the Evil Defense Roon of the Municipal Building located at 21S Last McKinney, Denton, 'T'exas. The subjects to be considered are listed on the Agenda which is attached hereto and make a part of this notice. If during the course of the meeting coverect by this notice the board/Commission should determine that an executive meeting of the Board/Commission, or a consultation with the City's attorney should be held or is required, then such executive meeting or consultation with the City's attorney as authorized by Article 6252-17 Revised Civil Statutes of Texas will be held by the Board/Commission at the date, hour, and place given in this notice or as soon after the commencement of the meeting covered by this notice as the Board/Commission may conveniently meet in such executive meeting, or consult with the City's attorney concerning any and all subjects and for any and all purposes permitted by Section 2(b) through Section 2(p), inclusive, of said Article 62$2-17, including, but not limited to, Section 2(c), Section 2(e), Section 2(f), Section 2(g), and Section 2(j) and as marked in the attached Agenda. Should any final action, final decision, or final vote: be required in the opinion of the Board/Commission with regard to any matter considered in such executive meeting or consultation with the City's attorney, then such final action, final decision, or final vote shall be at either: (a) the public meeting covered by this notice upon the reconvening of this public meeting, or (b) at a subsequent public met;zing of the lioa*d/Commission upon notice thereof, as the Board/Commission shall determine. Un this 211 clay of November , 1!1 42 the original of this instrument was filed among the official records of the City of Denton, Texas, and an original copy was posted on the bulletin board in the main lobby of the Municipal Building of the City of Denton at o'clock, ~,,1,___m• on Saiddato. UIlM(LU TH ALLEN, CITY SECRETARY CITY OF 1Jl:-N1'O,`9 TEXAS 0214C + CITY OF DENTON CITY COUNCIL it jay/ a November 30, 1982 3 0o 3:00 P.M. Special Called Meeting'ofvthe City of Denton City Council on Tuesday, November 30, at 3:00. 1. Public Hearings On Site 3:30 P.M. A. Public Vearing concerning annexation of approximately 24 acres of 'and located immediately east of the Denton Sewer Treatment Pl-sat (Z-1550). 3:45 P.M. B. Public Hearing concerning annexation of approximately 122 acres of land beginning in the centerline of Edwards Road approximately 1,800 feet east of Mayhill Road (Z-1549). 4:00 P.M. C. Public Hearing concerning the proposed annexation of approximately 63.89 acres of land located along the east side of Mayhill Road north of the Andrew Corporation (Z-1541). 4:30 P.M. D. Public Hearing concerning the proposed annexation of approximately 111.72 acres of land located along both sides of FM 1830 beginning approximately 200 feet south of Hobson Lane (Z-1542). 5:00 P.M. Special Called Meeting of the City of Denton City Council on Tuesday, November 300 at 5:00 P.M. in the Civil Defense Room of the Municipal Building at which the following items will be considered: 1. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(g), Art 6252-17 V.A.T.S. D. Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. 2. Approval of a Resolution approving an agreemeit by the City of Denton Industrial Development Authority to issue bonds for Union Camp Corporation Facility and the Resolution authorizing the issuance of such bonds and approving doctuaents. 3. Approval of final payment to Floyd Glen Smith for CIP Sidewalks, 1982 in the amount of $15,561.18. 4. Actions taken in Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(9)0 Art 6252-17 V.A.T.S. D. Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. 5. New Business this item pro, ides the Council with an opportunity to state new business to be discussed at future Council Meetings. 0732M AGENDA CITY OF DENTON CIT" COUNCIL November 30, 182 3:00 P.M. Special Called Meeting of the City of Denton City Council an Tuesday, November 3U, at 3:00. 1. Public Hearings On Site 3:30 P.M. A. Public Hearing concerning .annexation of approximately 24 acres of land located immediately east of the Denton Sewer Treatment Plant (Z-1550). 3:45 P.M. B. Public Hearing concerning annexation of approximately 122 acres of land beginning in the centerline of Edwards Road approximately 1,800 feet east of Mayhill Road (Z-1549). 4:00 P.M. C. Public Hearing concerning the proposed annexation of approximately 63.89 acres of land located along the east side of Mayhill Road north of the Andrew Corporation (Z-1541). 4:3U P.N. D. Public Hearing concerning the proposed annexation of approximately 111.72 acres of land located along both sides of FM 1830 beginning approximately 200 feet south of Hobson Lane (Z-1542). 5:00 P.M. Special Called Meeting of the City of Denton City Council on Tu-'-sday, November 30, at 5:00 P.M. in the Civil Defense Room of the Municipal Building at which the following items will be considered: 1. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(g), Art 6252-17 V.A.T.S. D. Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. 2. Approval of a Resoultion approving an agreement by the City of Denton Industrial Development Authority to issue bonds for Union Camp Corporation Facility and the Resolution authorizing the issuance of such bonds and approving documents. 3. Approval of final payment to Floyd Glen Smith for CIP Sidewalks, 1982 in the amount of $15,561.18. 4. Actions taken in Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(g), Art 6252-17 V.R.T.S. 0. Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. 5. New Business this item provides the Council with an opportunity to state new business to be discussed at future Council Meetings. 0732M f ~ ~l C~ ~d PA) STAFF REPORT To: Denton City Council Case No. Z-1550 Date: November 30, 1962 GENERAL INFORMATION Applicant: City of Denton 215 E. McKinney Denton, Texas 76201 Status of Applicant: Owner Requested Action: Annexation Location: Immediatuly East of Sewer Treatment Plant. Approximately 24 acres Size: Existing Land Use: Vacant Surrounding Land Use: North - Vacant South - Vacant East - Vacant Best - Sewer Treatment Plant SPECIAL INFORMATION Physical Characteristics: Vegetation consists of pecan orchard, grass, trees and weeds. Land lies adjacent to city limit. ANALYSIS FThis recently acquired tract will be utilized for sludge disposal. Annexation of this tract will move the City limit in this area eastward to the centerline of Pecan Creek, which is a natural boundary. (Z-1550) Page 2 RECOMMENDATION The Planning and Community Development Department recommends approval of annexation. ATTACHMENTS 1. Map 2. Service Plan 3. Planning and Zoning Commission minutes of meeting of November 3, 1982 • r PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS {WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and 1WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation, NOW1 THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan A. Police (1) Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards, B. Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided on the effective date of annexation. C. Water (1) {Water for domestic, commercial and industrial use will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. D. Sewer (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation, Service Plan Annexed Areas Page two F. Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc,) will begin on the effective date of annexation, (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation. (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. 0. Inspection Services (1) Any inspection services now provided by the city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. H, Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area. 1. Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city, J. Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city will be fol- lowed in expanding the recreational program and facilities in the enlarged city. K. Electric Distribution (1) The city recommends the use of City of Denton for electric power. r Service Plan Annexed Areas Page three L. Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the effective date of annexation. 11. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. Minutes Planning and Zoning Commission November 3, 1982 Page 9 mit if area is annexed. He said that about 10 dwellings exist on property at the present time. He said that staff recommends annexation. Mr. Juren moved to recommend annexation of 122 acres. Seconded by Mr. Bscue and unanimously carried. (5-0) FF. Z-1S50. Consider annexation'of approximately 24 acres Nand located immediately east of the Denton Sewer Treatment Plant. Mr. Watkins explained that area proposed for annexation was recently acquired by the city, that a pecan orchard exists on it at the present time, that property is lo- cated immediately east of the Denton Sewer Treatment Plant and will probably be used for sludge disposal. He said that staff recommends annexation. Mr, bscue moved to recommend annexation of 24 acres. I Seconded by Mr. Juren and unanimously carried. (5-0) G. Consider conclusions of review of proposed Denton Development Ordinance (subdivision and land develop- ment regulations). Air. Fanning summarized proposed changes as agreed on in study session as follows: 1. keplat Procedure (Page 1S) a) All replats of single family lots shall include a courtesy notice to all adjacent property own- ers within 200 feet if they were not notified as provided in the state law notification provision. b) All replats shall go to the City Council for final action. 2. Annexation Policy (Page 17) The current procedure requires only City Council study prior to starting the formal annexation proceedings. The Planning and Zoningg Commission recommends including the Commission in this infor- mal study procedure. STAFF REPORT To: Denton City Council Case No. Z-1549 Date: November 30, 1982 GENERAL INFORMATION Applicant: City of Denton 215 E. McKinney Denton, Texas 16201 Status of Applicant: Owner Requested Action: Annexation Location: 8egins approximately 19800 feet east of Mayh1ll Road Size: Approximately 122 acres Existing Land Use: Approximately ten (10) dwellings and vacant land Surrounding Land Use: North - Vacant South - Vacant East - Vacant West - Housing and Vacant land ;PECIAL INFORMATION s Physical Characteristics: Vegetation consists of grass, trees and weeds. The site is currently served by Edwards Road, which is an unimproved road. ('Z-1549) Page 2 ANALYSIS This is the proposed landfill site located adjacent and south of the city limit. There are approximately ten 10) residential dwellings located on the property. The dwellings and accessory buildingys will belong to the City of Denton. The landfill it- self wiil be located south of the e~.isting dwellings, and the plans call for access to the site by a road to the south from the sewer plant road. RECOMMENDATION The Planning and Community Development Department recommends approval of the proposed annexation. ALTERNATIVES Take no action to continue annexation. 2. Move to discontinue ai,~exation. ATTACHMENTS r_ 1. Map E 2. Service Plan 3. Planning and Zoning Commission minutes of meeting of November 3, 1982 PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan A. Police (1) Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards. B. Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided Pn the effective date of annexation. C. Water (1) Water for domestic, commercial and industrial use will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of the code of the City of Denton; Texas. D. Sewer (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation, Service Plan Annexed Areas Page two F. Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation. (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services (1) Any inspection services now provided by the city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. 11. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area. I. Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city. J. Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city will be fol- lowed in expanding the recreational program and facilities in the enlarged city. K, Electric Distribution (1) The city recommends the use of City of Denton for electric power, Service Plan Annexed Aresis Page three L. Miscellaneous (1) Street name signs inhere needed will be installed within approximately 6 months after the effective date of annexation. II. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. Minutes Planning and Zoning Commission November 3, 1982 Page 8 Mr. Ellison agreed stating that there are a lot of ques- tions that staff has not been able to answer. He said that Ray McFarlane and Larry Luce of NTSU met with De- velopment Review Committee to discuss request for quit claim but no satisfactory answers were obtained about proposed use of streets. He said that individual de- partments voiced opposition with so many streets and utilities involved; that Fire Chief was opposed due'to inade uate access. He continued that the university has agreed to give city easements but apparently in the past the city has had to resort to legal recourse due to pav- ing over streets and easements. He concluded that he felt communication problems could be worked out, that request was put on Planning and Zoning Commission agenda as a consideration item to receive direction. He also agreed that input from public in area was needed. Ray McFarlane of NTSU stated that the university had approached the city several months ago and had met with Development Review Committee in July. He said that re- quest for quit claim is to give flexibility in future planning, that they have no design to close any of the streets most of which are interior to campus. Highland and Maple serve some persons outside campus. He said that university would be willing to give easements for utilities; that he had met with Fire Chief Gentry and had worked out adequate or equal fire access to be pro- vided in the event streets were closed. He continued that he felt any action by Planning and Zoning Commis- sion at this time would be premature and suggested that if there are questions they should get with staff and work them out. Chairman agreed. Mr. Ellison asked for direction in handling the issue and Chairman suggested that City Manager and City Council be consulted about best way to proceed. Mr. Escue moved to table request for quitclaim. Seconded by Mr. Juren and unanimously carried. (5-0) E. Z-1549. Consider annexation of approximately 122 acres o and beginning in the centerline of Edwards Road ap- proximately 1800 feet east of Mayhill Road. Mr. Watkins explained that area proposed for annexation was acquired by the city as potential landfill site, that city will come back and request a specific use per- Minutes Planning and Zoning Commission November 3, 1982 Page 9 mit if area is annexed. He said that about 10 dwellings exist on property at the present time. He said that staff recommends annexation. Mr. Juren moved to recommend annexation of 122 acres. Seconded by Mr. Escue and unanimously carried. (5-0) 1 F. Z-1550. Consider annexation of approximately 24 acres o and located immediately east of the Denton Sewer Treatment Plant. Mr. Watkins explained that area proposed for annexation was recently acquired by the city-, that a pecan Orchard exists on it at the present time, that property is lo- cated immediately east of the Denton Sewer Treatment Plant and will probably be used for sludge disposal. Fie said that staff recommends annexation. Mr. Escue moved to recommend annexation of 24 acres. Seconded by Mr. Juren and unanimously carried. (S-0) G. ConsUor conclusions of review of propoosed Denton Development Ordinance (subdivision and land develop- ment regulations). Mr. Fanning summarized proposed changes as agreed on in study session as follows; 1. Replat Procedure (Page 15) a) All replats of single family lots shall include a courtesy notice to all adjacent property own- ers within 200 feet If they were not notified as provided in the state law notificatlon provision, b) All replats shall go to the City COUncil for final action. 2. Annexation Policy (Page 17) The current procedure requires only City Council study prior to starting the formal annexation proceedings. The Planning and Zoning Commission recommends including the Commission fn this infor- mal study procedure. ~y:oa Pµ) PLANNING AND ZONING COMMISSION RECOMMENDATION TO THE CITY COUNCIL To: Denton City Council Case No. Z-1541 Date: November 30, 1982 GENERAL INFORMATION Applicant: City of Denton 215 E. McKinney Denton, Texas 16201 Requested Action: Annexation Purpose: To insure development occurs in accordance with City Standards. Location: East side of Mayhill Road from Page Road southward to existing city limit. Size: Approximate 63.84 acres Existing Land Use: Vacant, except for one (1) residential dwelling Surrounding Land Use: North - Vacant South - Andrew Corporation East - Vacant West - Vacant Master Plan: Low Intensity Area; Mayhill Roao pro- posed as Major Arterial Street in this area; Page Road as a secondary arter- ial. Applicable Regulations: If the property is annexed, the owner will be required to seek appropriate zoning to develop a mobile home park and must develop in accordance with the Mobile Home and Travel Trailer Park Ordinance. (z-1541) • Page 2 SPECIAL INFORMATION Public Utilities: Adequate water and sewer capacity is available and the owner has received City Council approval for extension of water and sewer services. The water line would be extended from its cur- rent termination at the entrance to the Andrew Corporation. Sewer service would come from the 2411 line located east of the site. Public Services: Sanitation service is available. Transportation: Should the mobile home development occur, the ar►.,a will generate approx- imai2ly 3,000-4,000 trips per day. It is anticipated that this amount of traffic will significantly impact "un- improved perimeter streets" in the area. ANALYSIS The property belonging to Mr. Allan Getz consists of approxi- mately 39 acres on the east side of Mayhill Road. The balance of the property included in this proposed annexation is land lying between the current city limit and the Getz property. The City Council recently approved extension of water and sewer facili- ties to the site, which is proposed for mobile home park devel- opment. Should the proposed mobile home park site be annexed, then the developers would have to seek appropriate zoning for a mobile home park and develop the park in accordance with the mobile home park ordinance. The proposed development meets the Denton annexation policy guidelines for determining when annexation should be considered,' and as indicated by the City Council action with respect to extension of water, sewer and electric services, there is ade- quate capacity and ability to provide nurmal urtan services equal to other comparable areas inside the city. If subdivision of the parcel is required, there is no provision for cost participation by the developer for roads around the perimeter of the proposed development if the area is not annexed into the city. (Z-1541) Page 3 ANALYSIS CONTINUED Additionally, if the area is not annexed, the mobile home park would not Piave to meet the development standards as set forth in the mobile home park and travel trailer ordinance. Without ben- efit of the standards in the mobile home park ordinance the city has no means of controlling the quality of land use. As many as 350-400 mobile homes could be located on the property generating 3,500 to 4,000 vehicle trips per day. These figures, which are based upon maximum utilization of the property, indi- cate substantial traffic impact upon nearby unimproved city streets. The section of Mayhill Road along the west side of this tract is a planned major arterial street and the tract is in a designated low intensity area, which is on the edge of a high intensity node. t RECOMMENDATION The Planning and Zoning Commission recommends approval of the proposed annexation by a vote of 5-0. ATTACHMENTS 1. Map 2. Annexation Policy 3. Plan of Service 4. Property owner list 5. Reply form totals 6. Planning and Zoning Commission minutes of meeting of October ~ 20, 1982 and November 3, 1982 i M 678 - 0 1 \ \ • 0 • ' 'V • It ! 'r ` C E ~ 1 f rf~♦ 00aamass r + . E 1 r i i y ~ ~ •i \ r ` r WY O o~ • . Y O °iler ~y ANNEXATION POLICY: It is the general policy of the City of Denton to assess on a case by case basis the annexation of areas in the Extra Territorial Jurisdiction (ETJ) when significant developments are proposed or occurring. The following are guidelines for determining when annexation should be considered:' 1) Single family developments over five lots; 2) Multi-family industrial or commercial developments over one acre; 3) Any area where the, density exceeds 500 units per square mile, 4) 4ny development or area that might present a significant impact upon.the_City in such ways as service cost, increased ----traffic; utility needs or utilization, safety or health -hazards, substandard construction practices, detrimental aesthetic quality or other similar community impacts. When the above conditions exist, appropriate City staff shall review the proposed development for the-purpose-of considering annexation. The review shall also include consideration of the annexation of logical planning areas around the area of initial concern. In studying the question of whether or not an area should be annexed the following criteria shall be considered as a minimum: 1) The ability of the City to furnish normal urban services equal to other comparable areas inside the city limits. (Dote: water and sewer system capabilities considered, but lines for individual areas normally not City financing responsibility.) 2) The reliability, capacity and future public cost (if any) of current and planned provisions for community facilities such as roads, utilities, etc. (Private facilities will be considered). Annexation Policy 3) The need and quality of land use and building controls. (Private controls will be considered.) 4) Impact on the City both current and long range, including as a minimum; a) fiscal cost*and benefits b) traffic c) infrastructure of roads, utilities and other community facilities d) safety or health e) building/development quality f) aesthetic quality g) community character ' 5) Conformance with and/or need to insure conformance with the Denton Development Guide. If, after preliminary study, the above criteria indicates a need to more seriously consider annexation in order to promote or protect the public interest then the City will initiate formal annexation proceedings to consider.., the..annexation_question in detail. - If a property in the ETJ is contiguous to the City limits and the owner of said property desires that it be annexed in order to be qualified to receive City services when available, and to be afforded zoning-protection, the owner may petition the City for annexation. PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, OF THE CITY OF DENTON, TEXAS: Sectio;,, 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: 1. Basic Service Plan A. Police (1) Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards. B. Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided on the effective date of annexation. C. Water (1) Water for domestic, commercial and industrial use will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of the code of the Cite of Denton, Texas. D. !vv;cr (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. Service Plan Annexed Areas Page two F. Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation, (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services (1) Any inspection services now provided by The city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date o° annexation. H. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area. I, Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city. J, Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city vill be fol- lowed in expanding the recreational program and facilities in the enlarged city. K. Electric Distribution (1) The city recommends the use of City of Denton for electric power. 0 Service Plan Annexed Areas Page three L. Miscellaneous (1) Street name signs •Yhere needed will be installed within approximately G months after the effective date of annexation. II. Capital Improvement Program (CIP) The CIP of the C?.ty consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or oppurtunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. z- s As y TP it e. * y h .fin l ! 1 ~ ro(f / • I-S3 td Cl , b . 6 T' PROPERTY OWNER REPLY FORMS CITY COUNCIL 2-1541 IN FAVOR IN OPPOSITION UNDECIDED George Hopkins, rep. Allan Getz Andrew Corporation Allan Mobile Home First State Bank Bldg. P. 0, Box 1059 Denton, Texas 76201 Lewisville, Tx 382-6814 221-3702 r • ►1i nutes Planning and Zoning Commission October 20, 1982 Page 1 reviewed by Development Review Committee and is accept- able. He said it is fortunate that drive cut complies with city and state requirements and that there were no drainage requirements. On question, Mr. Watkins said that since plat meets requirements there is no basis for denying the plat. Chairman asked that matter be brought to attention of City Manager and suggested that City Manager urge other departments to be aware of platting requirements before issuing permits for taps, etc. He said he would like to be informed of response. Mr. Escue moved to recommend approval of final plat of Jack Briscoe Addition. Seconded by Mr. Juren and unani- mously carried. (5-0) E. IZ-1541. Consider proposed annexation of approximately 63.89 acres located along the east side of Mayhill Road. Mr. Watkins presented proposed annexation stating that the owner of a 39 acre parcel had requested permission of the City Council to extend utilities in order to develop a mobile home park; City Council directed staff to initiate annexation proceedings. Staff is recommend- ing extending current city limits line north to include property between Andrew Corporation and the Getz prop- erty for a total of approximately 63 acres. He advised that first public hearing before City Council is sched- uled for November 9 and second public hearing on site is scheduled for tovember 30, that proposal is brought to Planning and Zoning Commission at this time for a formal recommendation. On question, he said that Andrew Corpo- ration has not been contacted, that notices will be sent to property owners prior to public hearings. He further explained that purpose of annexing Getz property is to assure that mobile home park is developed in accordance with mobile home ordinance. Chairman asked about existing residence at southwest corner of proposed area, questioning annexation without providing benefits. Mr. 51dor commented that it would not be in best interest of city to offset that property. Minutes Planning and Zoning Commission { October 20, 1982 Page 8 Mr. Sidor moved to recommend annexation of 63.89 acres. Seconded by Mr. Claiborne. Mr. Juren amended motion to exclude private residential area at southwest corner. Mr. Escue seconded the amend- ment. Vote was called on amendment: Aye - Claiborne, Escue, Juren and LaForte Nay - Sidor Motion carried. (4-1) Vote was called on motion to annex: Aye - Claiborne, Escue, Juren, LaForte and Sidor Nay - None motion unanimously carried. (5-0) Mr. Watkins.advised_that.total 63.89 acre3 would be advertised for annexation, as smaller but not larger area than-area advertised could be annexed by the city. He said that City Council would be informed of Planning Lnd Zoning Commission recommendation. Mr. Claiborne left meeting. F. -Z-1542... Consider proposed annexation of approximately 111.72 acres located along either side of F. M. 1830. Mr. Watkins presented proposed annexation stating that home owners on the west side of FM 1830 requested per- mission of the City Council to extend wator and sewer to their homes. When this was first brought to Planning and Zoning Commission, it was their recommendation that area be expanded to include property on east side of road consisting of a total of approximately 111 acres. He continued that condition of the southernmost portion of the property on the west side was a consideration in recommending annexation and pointed out that it has since been learned that a contractor's shop exists along with a residence which business use would be allowed to continue but not expand without a zoning change. Vacant land existing on the east side is beginning to develop and annexation is recommended to ensure compatibility with Forrestridge i and II. c• Mr. LaForte moved to recommend annexation of 111.72 acres on either side of FM 1830. Seconded by Mr. Juren and unanimously carried. (4-0) Minutes Planning and Zoning Commission November 3, 1982 Page 13 half streets; therefore property owners adjacent to these roads have to either post bond or escrow funds which presents a problem with interest money. He said that if curb and gutter is added on an assessment paving system funds are generally not recouped by city. He said there is a problem of enforcing paving policy, and staff would like to leave policy as written excluding state and federal highways. After further discussion, Mr. Claiborne moved to approve the seven changes ppresented by staff, with the exception of bb which is to be deleted. Seconded by Mr. Escue and unanimously carried. (5-0) Sidewalk issue was discussed. On question, Mr. Edwards stated that cost for sidewalks would be $4 to $5 a lineal foot in addition to cost of street. He said that city has no funds budgeted for sidewalk repair the present time. Mr. Panning quoted from propose regula- tions which requires sidewalks on major thore.ghfares ` and collector streets. It was consensus of Commission to leave wording as it exists in the proposed subdivision regulations. Minimum standards for roadway medians was discussed and it was consensus to include proposed standards in the new subdivision regulations. Discussion continued on la of replat procedure. It was agreed to reword la to state that an attempt would be made to send a "courtesy notice" to residents (not prop- erty owners) within 200 feet of replat. ii. Now Business Chairman asked for items of new business to consider. None were offered. l,yr. Watkins explained that at last meeting when Planning and Zoning Commission considered annexation (Z-1541) of area along ,Mayhill Road, recommendation was made to de- lote the parcel where the single family residence was located. Since that time staff has discovered that Andrew Corporation owns that property, fie asked if that would affect recommendation of Planning and Zor.' 3 Commission. Minutes Planning and Zoning Commission November 3, 1982 Page 14 Chairman stated that he assumed a private citizen owned that property and his decision would be affected. Mr. luren suggested that staff take recommendation to City Council to include parcel as Planning and Zoning Commission didn't know that Andrew Corporation owned the property when original motion was made. Commission concurred. Mr. Watkins said he would take amended recommendation to City Council. Meeting adjourned at 8:10 p.m. P,) PLANNING AND ZONING COMMISSION RECOMMENDATION TO THE CITY COUNCIL To: Denton City Council Case No. Z-1542 Date: November 301 1982 GENERA'6 INFORMATION Applicant: City of Denton 215 E. McKinney Denton, Texas 76201 Requested Action: Annexation Purpose: Control existing and future development Location: Both sides of FM 1830 beginning approximately 200 feet south of Hobson Lane. Size: Approximately 111.72 acres Existing Land Use: Two duplex, four single family and four mobile dwellings Surrounding Land Use ' and Zoning: North - Housing and Vacant South - Housing and Vacant East - Residential West - Vacant; Commercial Master Plan: Low Intensity Area SPECIAL INFORMATION Public Utilities: Adequate water and sewer capacity is available. The City Council recently approved utility extension to serve the houses fronting on FM 1830. Public Services: Sanitation services are available. Transportation: Existing land uses have insignificant traffic impact. (z-1542) Page 2 ANALYSIS This parcel meets the first guideline in the annexation policy for determining when annexation should be considered; single family development over five lots. The property is located in an area where the city has the ability to furnish normal urban services. The condition of the structures on the two southern- most lots indicates a need for code enforcement and building controls because of the quality of the existing land use. Because of the scale and location of the site it is anticipated that fiscal benefits will exceed cost, and it is felt that traf- fic infrastructure, safety, and health impacts are insignificant at this time. Since the Planning and Zoning Commission last considered annex- ation of this area it has come to our attention that the parcel owned by Mr. Stapler on the west side of FM 1830 is and has been used as a residence and a contractors shop. If the property is annexed no expansion to this business could occur without a zon- ing change but Mr. Stapler does have the right to continue the business use of the property as is. it is felt that annexation of the property is required to con- trol the expansion of mobile homes on the south side of this land and to prevent the development of incompatible land uses adjacent to Forrestridge I and Forrestridge 11. RECOMMENDATION The Planning and Zoning Commission recommends approval of the proposed annexation by a vote of 4-0. j ATTACHMENTS 1. Map 2. Annexation Policy 3. Service Plan 4. Property owner list 5. Reply form totals u. Planning and Zoning Commission minutes of meeting of October 20, 1982 . • ~ i iJJJ1tIJ~t~tt~~ ' 0 / ~ er • ~ 1 ~ r-- ' l y . • le P r 1 ' eate • V3V i • 377 w ~tN r oir Pa }fig Qar e ~t4TR,.Le o S o ~ ~ r •u,. r r Q r 76 N544 `t7 lob ANNEXATION POLICY: It is the general policy of the City of Denton to assess an a case by case basis the annexation of areas in the Extra Territorial Jurisdiction (ETJ) when significant developments are proposed or occurring. The following are guidelines for determining when annexation should be considered:* 1) Single family developments over five lots; 2) Multi-family industrial or commercial developments over one acre; 3) Any area where the. density exceeds 500 units per square mile; 4) Any development or area that might present a significant impact upon the City in such :rays as service cost, increased ~-traffic-, utility needs or utilization, safety or health ---hazards, substandard construction practices, detrimental aesthetic quality or other similar community impacts. When the above conditions exist, appropriate City staff shall review th•e proposed development for the-purpose-of cons7.de ring annexation. The review shall also include consideration of the annexation of logical planning areas aro4nd the area of initial concern. In studying the question of whether or not an area should be annexed the following criteria shall be considered as a minimum: 1) The ability of the City to furnish normal urban services equal to other comparable areas inside the city limits. (Note: water and sewer system capabilities considered, but lines for individual areas normally not City financing responsibility.) 2) Thu reliability, capacity and future public cost (if any) of cLtrrent and planned provisions for community facilities such as roads, utilities, etc. (Privatre facilities will be considered)$ Annexation Policy 3) The need and quality of land use and building controls. (Private controls will be considered.) 4) Impact on the City both current and long range, including as a minimum: a) fiscal cost'and benefits b) traffic c) infrastructure of roads, utilities and other community facilities d) safety or health e) building/development quality f) aesthetic quality g community character 5) Conformance with and/or need to insure conformance with -the Denton Development Guide. If, after prelimtnary study, the above criteria indicates a need to more seriously consider annexation in order to promote or protect the public interest then the Gicy will initiate formal annexation proceedings to consider_ the._annexation.. question in detail. If a property in the ETJ is contiguous to the City limits and the owner of said property desires that it be annexed in order to be qualified to receive City services when available, and to be afforded zoning protection, the owner may petition the City for annexation. r 1 PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: 1. Basic Service Plan A. Police (1) Patrolling, rad'.o responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexcation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards. B, Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided on the effective date of annexation. C. Water (1) Water for domestic, commercial and industrial use will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. D. Stwer (1) Properties in the annexed area: will be connected to sewer lines in accordance with article 13,06 of appendix A of the code of the City of Denton, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. Service Plan Annexed Areas Page two F. Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation. (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services (1) Any inspection services now provided by the city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. R. Planning and Zoning (1) The Planning and Zoning jurisiiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area. 1. Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city. .1. Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city uill be fol- lowed in expanding the recreational program and facilities in the enlai,god city. K. Electric Distribution (1) The city rec(,mmends the use of City of Denton for electric power. Service Plan Annexed Areas Page three L. Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the effective date of annexation. II. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall cite economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year Oche annexation area will be judged accordingly to the same established criteria as all other areas of the city. Z~tSNI 3, -xv Y ri. I el fr 1) s #,le Pilo C/o l' n ;l 7f~r► ti 4 y, n /-Ely Oenlei E j i 2 ~fi'lX M 3 A?ljlen 9 1 e 1 ~ e 6 ~ l• t arc ).M t -,l 7~ : t At fit LZ~ r• _~~Jlt•~ N. s s o K'i n 6 , 1J., Oil l)►.pocq VI lrr T-r r -Alrdir i PROPERTY OWNER REPLY FORMS CITY COUNCIL Z-1542 IN FAVOR IN OPPOSITION UNDECIDED Millard D. Heath R. 0. Woodson C. J. Bovell 3030 Country Club Road Hobson Lane Route 6, Box 178 383-1481 Denton, Texas 76201 Denton, Texas 7620 Denton, Texas 76201 387-2466 382-5586 Michael R. Woodson Hobson Lane Denton, Texas 387-237j Larry E. Woodson Corinth, Texas 497-4781 ' I J Minutes Planning and Zoning Commission October 20, 1982 Page 8 Mr. Sidor moved to recommend annexation of 63.89 acres. Seconded by Mr. Claiborne. Mr. Juren amended motion to exclude private residential area at southwest corner. Mr. Escue seconded the amend- went. Vote was called on amendment: Aye - Claiborne, Escue, Juren and LaForte Nay - Sidor Motion carried. (4-1) Vote was called on motion to annex: Aye - Claiborne, Escue, Juren, LaForte and Sidor Nay - None Motion unanimously carried. (5-0) Mr. Watkins advised that total 63.89 acres would be advertised for annexation, as smaller but not larger area than area advertised could be annexed by~the city. He said that City Council would be informed of Planning and Zoning Commission recommendation. Fir. Claiborne left meeting. F. -1542. Consider proposed annexation of approximately 111.72 acres located along either side of F. M. 1830. Mr. Watkins.presented proposed annexation stat$ng that home owners on the west side of FM 1830 requested per. mission of the City Council to extend water and sewer to their homes. When this was first brought to Planning and Zoning Commission, it was their recommendation that area be expanded to include property on east side of road consisting of a total of approximately 111 acres. lie continued that condition of the southernmost portion of the property on the west side was a consideration in recommending annexation and pointed out that it has since been learned that a contractor's shop exists along with a residence which business use would be allowed to continue but not expand without a zoning change. Vacant land existing on the east side is beginning to develop and annexation is recommended to ensure compatibility { with Forrestridge I and II. Mr. LaForte moved to recommend annexation of 111.72 acres on either side of F,~-i 1830. Seconded by Mr. Juren and unanimously carried. (4-0) CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8200 MEMORANDUM TO: G. Chris Hartung, City Manager FROM: William H. McNary, Director of Finance DATE: November 23, 1982 SUBJECT: APPROVAL OF THE INDUSTRIAL DEVELOPMENT BOND ISSUE FOR UNION CAMP On the agenda for November 30, 1982 is a resolution approving the issuance of tax exempt bonds previously authorized by the Denton Industrial Development Corporation. State Law requires City Council approval prior to the issuance of any bonds by this corporation. The Denton Industrial Development Corporation approved a $3,000,000 bond issue on behalf of the Union Camp Corporation. The repayment of these bonds is fully guaranteed by Union Camp Corporation. There is no financial claim on the City of Denton. First Southwest Company is the corporation's financial advisor. Attached is their letter of analysis. The letter clearly outlines the financial stability of Union Camp Corporation and its ability to fulfill the conditions of the agreement. Legal interests of the Denton industrial Development Corporation have been represented by McCall, Parkhurst and Horton. They have prepared all the necessary documents. A representative of First Southwest Company will he present at the Council meeting to answer questions. Will am H. chary WHM:mr l Attachment FIRST COMPANY INVESTMENT BAN'KERS MERCANTILE DALLAS BUILDING DALLAS, TEXAS 75201 C. RACER MCCULLEY 12141 742.6461 .6ES DENT November 11, 1982 President and Board of Directors City of Denton Industrial Development Authority c/o Mr. William H. McNary 215 East McKinney Denton, Texas 76201 Gentlemen: You have advised us that you are giving consideration to the issuance of an amount not to exceed $3,000,000 in industrial development revenue bonds (the "Bonds") with the proceeds to be loaned to Union Camp Corporation ("Union Camp" or the "Company11), a Virginia corporation. Union Camp is to guarantee unconditionally the full, complete and prompt performance of each and every representation, covenant and agreement with regard to the loan including, specifically, the agreement to make Installment loan payments to a trustee bank (the "Trustee") as shall be necessary to enable the Trustee to make full and prompt payments when due of the principal of, premium, if any, and interest on all Bonds and all other amounts required to be paid by the Trustee. You have requested that we undertake a review and analysis of Union Camp and provide you with our opinion of the financial condition of the Company as related to this proposed loan. We are pleased to comply with this request. For the purpcr,e of this analysis, we have examined (i) the audited financial statements of the Company for the years ended December 31, 1981 through December 31, 1977, (ii) the unaudited statements for the nine months ended September 30, 1982 and September 30, 1981, (iii) the information available through various financial reporting services, including Moody's Investors Service, Inc. and Standard do Poor's Corporation. While we have no reason to believe otherwise, we have relied upon this Information to be complete and factual and containing no misstatements or omissions of any material fact. We have not conducted interviews with representatives of the management of Union Camp, nor have we visited the facilities of the Company. The opinion expressed herein is based upon our analysis of the financial condition of the Company on September 30, 1982, and on market, economic and other conditions as they exist at the date of this letter. Some of the major factors we have considered in our analysis are listed below: (l) Union Camp, whose stock is listed on the New York Stock Exchange, Is an integrated producer of various paper products, other timber related products and chemicals. Principal business segments include the manu- facture and sale of paper and paper board, accounting for 65.46 of 1981 sales, packaging products, building products, the production and FIRST 6o,(d eve& aompANr City of Denton Industrial / Development Authority November 11, 1982 Page 2 sale of chemicals, and through 49 Homecrafters Center Outlets, the distribution of building materials and home improvement products. Substantially all of the Company's sales are made east of the Rocky Mountains. Bond proceeds are to be used for the purchase of existing facilities utilized in the manufacture of multlwall bags and will assist Union Camp in expanding coverage of present markets. (2) Net sales for the fiscal year ended December 31, 1981 were $1.7 billion, an increase of $91.0 million from fiscal 1980, and refl:ctive of an annual compounded growth rate of 11.4% for the years 1981 through 1977. Net income for the 1981 fiscal year was $168.9 million, an increase of 2.3% from the $165.1 million reported in 1980. As a result, the Company recorded a 9.5% return on total assets in 1981. (3) During 1982) both sales and net income have suffered declines as the current economic recession has continued to adversely affect sales of paper and paperboard products. Net sales for the nine months ended September 30 1982 were $1.1 billion and net income was $94.7 million, a decrease of 155.3 million and $38.6 million respectively for a similar period ending September 30, 1981. (4) The Company had a current ratio of 2.2x times and a quick ratio of 1.2x times at December 31, 1981. Though recessionary pressures have forced down sales and net income in 1982, the Company has maintained a stable liquidity position. As of September 30, 1982, the current ratio was 2.5x times and the quick ratio was 1.5x times. Capitalization at September 30, 1982 was 24.9% long-term debt and 75.1% stockholders' equity. With $374.0 million in long-term debt at September 30, 1982, the issuance of some $3,000,000 in debt will increase long-term debt by less than 1.0% and will have a minimal effect on the capital structure. (5) As a result of a favorable capital structure, thb Company has experi- enced ample coverage of earnings before interest and taxes. This ratio has ranged from 13.4x times for the year ended December 310 1981 to ' 55.4x times for the year ended December 31, 1979. With the addition of some $3,000,000 in long-term debt, interest expense, at a rate of 10.0%, by way of example, would increase the 1981 level of interest by $300,000 or 1.5% and produce on a pro forma basis an annual interest coverage of 10.1 x times before interest and taxes based on 1981 income figures. (6) For informational purposes only, we have included the bond ratings on the outstanding long-term debt of Union Camp as prescribed by the two primary bond rating services. The corporate bonds are rated Aal by Moody's Investors Service, Inc. and AA by Standard do Poor's Corporation and are judged to be of high investment grade. These designated ratings F1HST,6OilMWea' OOMPANy City of Denton Industrial Development Authority November 11, 1982 Page 3 are an indication of historic operations, current financial position and the appraisal of long-term risk as they relate to the investment quality of the currently outstanding debt and are not a guarantee of the ratings of future debt issues or the financial Integrity of the Company. (7) We have been informed that the Bonds are to be marketed through an underwriting prepared by Goldman Sachs Company of New York. The Bonds are to be offered through a "best efforts" sale and will ultimately be placed either with a sophisticated financial institution or marketed publicly. The Bonds will be priced with fixed maturities and interest rates prior to authorization by the City of Denton Industrial Development Corporation. Union Camp has applied to Moody's Investors Service, Inc. for a rating on the Bonds. Therefore, it is our opinion, based on this review and analysis and our knowledge and investigation, that Union Camp Corporation has the financial resources to provide reasonable assurance that the proposed loan, including interest thereon, will be paid as principal and interest payments become due. Sincerely, C. Rader McCulley CRM:vrw UNION CAMP CORPORATION Cost Analysis (Unaudited) Nine Months Ended For the Years Ended September 30 December 31 1982 1981 1981 1980 1979 1978 1977 Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.'11% Cost of Sales 67.5 64.7 65.4 65.9 66.0 65.4 66..1; Gross Profit 32.5 35.3 34.6 34.1 34.0 34.6 33. Selling, General and Administrative Expenses 21.7 19.3 19.7 18.7 18.2 19.3 17. r Operating Margin 10.8 16.0 14.9 15.4 15.8 15.3 15. Other Income 1.3 1.1 1.5 1.5 1.1 1.4 1. Interest Expense (0.7) (1.2) (1.2) (0.7) (0.3) (0.3) Income Before Tax 11.4 15.9 15.2 16.2 16.6 15.9 16. Income Tax 3.1 5.6 5.1 5.7 7.5 5.6 5. NET PROFIT MARGIN 8.3% 10.3% 10.1% 10.5% 10.9% 10.3% 10. r% UNION CAMP CORPORATION Statistical Analysis (Unaudited) Nine Months Ended For the Years Ended September 30 December 31 1982 1981 1980 1979 1978 1977 Liquidity Current Ratio 2.5x 2.2X 2.1x 1.5x 2.5x 2.9x Quick Ratio 1.5 1.2 1.3 0.8 1.7 1.8 Leverage Capitalization: Long-Term Debt 24.9'X, 22.7% 24.4% 19.7% 20.7% 21.7% Stockholders' Equity 75.1 77.3 75.6 80.3 79.3 78.3 Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Times Interest Earned Before Tax 13.4x 25.5x 55.4x 21.4x 44.4x After Tax 9.3 16.9 36.7 14.2 29.3 Profitability Gross Profit Margin 32.5% 34.6% 34.1% 34.0% 34.6% 33.2% Operating Margin 10.8 14.9 15.4 15.8 15.3 15.3 Net profit Margin 8.3 10.1 10.5 10.9 10.3 10.6 Return on Stockholders' Equity 15.5% 16.8% 17.0% 15.4% 15.9% Return on Capitalization 12.0 12.7 13.7 12.3 12.4 Return on Total Assets 9.5 10.0 10.5 9.9 10.1 CERTIFICATE FOR RESOLUTION APPROVING AN AGREEMENT BY CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY TO ISSUE BONDS FOR UNION CAMP CORPORATION AND THE RESOLUTION AUTHORIZING ThE ISSUANCE OF SUCH BONDS AND APPROVING DOCUMENTS THE STATE OF TEXAS CITY OF DENTON, TEXAS We, the undersigned officers of the City Council of said City, hereby certify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 23RD DAY OF NOVEMBER, 1982., at the designated meeting place, and the roll was called of the duly con- stituted offices and members of said City Council, to-wit: Richard D. Stewart, Mayor Charlotte Allen, Secretary Mark Chew Jack Barton Charles Hopkins Dr. A. Ray Stephens jim Riddlesperger Joe Alford and all of said persons were present, except the following absentees: thu3 constituting a quoram. Whereuaon, among other business, the following was transacted at said Meeting: a written RESOLUTION APPROVING AN AGREEMENT BY CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHOkITY TO ISSUE BONDS FOR UNION CAMP CORPORATION FACILITY AND THE RESOLUTION AUTHORIZING THE ISSUANCE OF SUCH BONDS AND APPROVING DOCUDI£NTS was dull, introduced for the consideration of said City Council and read in full. It waa then duly moved and seconded that said Resolution be adopted; and, after due discussion, said motion, carrying with it the adoption of said Resolution, prevailed and carried by the following vote: AYES: All members of said City Council shown prese~.t above voted "Aye". NOES: ABSTENTIONS: 2. That a true, full, and correct copy of the afore- said Resolution adopted ac the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that said Resolution has been dull re- corded in said City Council's minutes of said Neeting pertaining to the adoption of said Resolution; that the persons named in the above and foregoing paragraph arc: the duly chosen, qualified, and acting officers and members of said Board as indicated therein; and that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for adoption at said Meeting, and each of said officers and members consented, in advance, to the holding of said Meeting for such purposes and that said Meeting was open to the public, and public notice of the time, place, and purpose of said Meeting was given, all as required by Vernon's Ann. Civ. Stat. Article 6252-17. SIGNED AND SEALED the 23rd day of November, 1982. City Secretary Yayor (SE.%'~) CERTIFICATE FOR RESOLUTION APPROVING AN AGREEMENT B CITY OF DENTON INDUSTRIAL DEVELuPMENT AUTHORITY TO ISSUE BONDS FOR UNION CAMP CORPORATION FACILITY AND THE RESOLUTION AUTHORIZING THE ISSUANCE OF SUCH BONDS AND APPROVING DOCUMENTS THE STATE OF TEXAS CITY OF DENTON WHEREAS, the City of Denton Industrial Development Authority was created under the auspices of the City of Denton, Texas; and WHEREAS, it is deemed necessary and advisable that this Resolution be adopted. ThEREFORE, BE IT RESOLVED BY THE CI'T'Y COUNCIL OF THE CITY OF DENTON, TEXAS THAT: Section 1. The Loan Agreement between City of Denton Industrial Development Authority and Union Camp Corporation, in substantially the form and substance as attached to this Resolution and made a part hereof for all purposes, is hereby approved, and Bonds in the principal amount of $3,050,000, may be issued pursuant thereto for the purpose of paying the cost of acquiring and constructing or causing to be acquired and constructed the Project as defined and described therein. Section 2. The "Resolution of City of Denton Indus- trial Development Authority Authorizing the Issuance of Bonds and Approving Documents, in substantially the fora and substance attached to this Resolution and made a part hereof for all purposes, is hereby specifically approved, and the Bonds may be issued as provided therein. . CITY OF DENTON MEMORANDUM DATE OF MEBTING: November 30 1982 CITY COUNCIL AGENDA WORMINAG AS IT PLACED ON AGENDA) Approve final payment to Floyd Glen Smith for CIP Sidewalks 1982. SUM.'NARY : Approve final payment of $15,561.18. Pro)ect is compplete with appearance of work approved by an innovative design in certain areas. No working days remain on the contract. FISCAL SUMMARY: Total payment is $47,776.92 which is a 11.51 cost savings on the project from the estimated $53,714.54. ACTION REQUIRED: Council should approve the final payment. ALTERNATIVES: Not applicable. S'T'AFF RECOMMENDATIONS: Staff recommends approval of final payment. EXHIBITS: 1. Memo to Stick Svehla 11. Invoice ac 1- err Cr "r- -Senior C it Engineer I CITY OF DENTON MEMORANDUM TO: Rick Svehla FROM: Jerry Clark DATE: November 23, 1982 SUBJECT: Final Payment on GIP Sidewalks Work on the CIP Sidewalks was completed November 19, 1982 with no work days remaining. The work has been inspected and accepted by Engineering crews. Final payment is in the amount of $15,561.18. A cost savings of $5,937.62 is due to flexible base material under one section of the sidewalk being deleted. The Engineering staff recommendIs final payment be made on the project. i1 Terry arc Senior v Engineer U P'Sidewalks 1982 Final Estimate Sid #9014 Extension Item Description Quantity Bid Price Total 242 Limestone Base Material 0 S.Y. 13.34/S.Y. $ 0 421 Class A Concrete 13 C.Y. 300.00/S.Y. 3,900.00 432 Class B, Concrete Riprap 268 S.Y. 30.55/S.Y. 89187.40 465-A 27" R.C.P. 37 L.F. 62.24/L.F. 29301.40 465-8 Safety Ends for 27" R.C.P. L.S. 1,300.00/L.F. 12300.00 524-8 Concrete Sidewalk 1908 S.Y. 15.34/S.Y. 29,268.72 SP-2 Sawcut Existing Concrete 60 L.F. 13.67/L.F. 820.20 SP-SA GF-77 Guard Rail 68 L.F. 29.40/L.F. 1,999.20 Total $47,776.92 Previous Payments 32,215.74 Less Retainage 0.00 Amount Owed X61.19 0 working days remaining 14 it r._ f`: + i; r•~, \ Ate. Floyd Smith Jer y r CERTIFICATE OF AUTHENTICITY THIS IS TO CERTIFY that the rnicrophnlographs appeodnq on Ihls illm•Flle • S+atfln~ with CITY COUNCIL AGENDA PACKET 11/30/82 and Indlnp with CITY COUNCIL AGENDA PACKET an occurnta and complete roproduellons of the records of (Company and Depl.) CITY OF DENTON CITY SECRETARY as dolivsmd In the reoulor Course of business for pholographlnp. H Is furthor certlnod that the micrgpholographic processes were accomplished in a manner and on film which ,noels with re9ulrements of Iho Neilonal ru u of Standards 1w pwmansnl microphotogrop;iic copy. : Al"o; Bacgrds CoMP_appY _ ItawA T[CHMOLOCY AT( C..++Or.r.w► PIACEL 61e,LaitlA(g B" State Arlington, Tens 76010 CERTIFICATE OF AUTHENTICITY