HomeMy WebLinkAbout12-16-1986
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~a AGENDA
CITY OF DENTON CITY COUNCIL
December 16, 1986
Work Session of the City of Denton City Council on Tuesday, December
160 19860 at 5:00 psm. to the Civil Defense Poor of the Municipal
Building at which the following items will he considered:
5:00 p.F4
11 Receive an overview report on the proposed utility rate
adjustment.
2. Executive Session:
A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.C.S,
B, Real Estate Under Sec, 2(f), Art, 6252-17 V.AsC.S.
C. Personnel/Board Appointments Under Sec. 2(g), Art
6252-17 VsA.C.S.
5:30 p.m.
1. Discussions with State Representative Jim Horn.
Special Meeting of the City of Denton City Council on Tuesday,
December 16, 19A69 at 6:00 p.mo in the council Chambers of the
Municipal Building at which the following items will he considered:
6:00 p.m$
1. Presentation of Sesquicentennial Denton nook to the City.
2. Receive bids for the purchase of $500,000 City of Denton,
Texas Certificates of Obligation, issue 1987.
3► Consent Agenda:
Each of these items is recommended by the Staff and
approval thereof will be strictly on the basis of the Staff
recommendations. Approval of the Consent Agenda authorizes the Vity
Manager or his designee to implement each item in accordance with
the Staff recommendations.
Listed below are bids to be approved for payment under the
Ordinance section of the agendas Detailed back-upp information is
attached to the ordinances (Agenda items 4.A and 4.B). This listing
is rrovided on the Consent Agenda to allow Council Members to
discuss any item rrior to approval of the ordinance.
A. Bids:
11 Rid F 904 - Fxtension of hid for mobile
radios
city of Denton City COU0C11 Agenda
December 16, 1986
Page Two
21 Bid 0 9685 - Lease/purchasing financing
31 Aid 0 9686 - Riding wowers
4. Bid 0 96P8 • West Hickory and Welch Street
paving and drainage
5. Bid 0 9689 - Painting office complex/ warehouse
49 Ordinances:
A. Consider adoption of an ordinance accepting
competitive bids and providing for the award of
contracts for the purchase of materials, eouipment,
supplies or services
A. Consider adoption of an ordinance accepting
competitive bids and providing for the award of
contracts for public works or improvements.
C. Consider adoption of an ordinance canvassing bond
election returns.
D. Consider adoption of an ordinance authorizing the
Mayor to execute an agreement with Maywood Jordan
McCowen and Gary Juren Architects and Company relating
to the rendering of professional architectural
services for the design of a community building. (The
Community Development Block Grant Committee and the
Parks and Pecreation Board recommend approval.)
F. Consider adoption of an ordinance authorizing the City
of Denton to contract with CTIC Associates for cable
television refranchisement consulti?ig services with
the amount of the contract not to exceed $27,840.00.
(The Cable TV Advisory Board recommends approval.)
F. Consider sdoptioe of an ordinance approving an
agreement providing for the lease of office space at
324 Fast McKinney Street.
G. Consider adoption of an ordinance establishing a
loading zone located at 115 Sycamore Street and
providing for a penalty in the maximum amount of
$200.00 for violations thereof. (The Citizens Traffic
Safety Support Commission recommends approval.)
H. Consider adoption of an ordinance authorizing an
agreement between the City of Denton and Arthur Young
for the purposes of conducting a review of the
management/professional pay plan.
r. Consider adtion of an ordinance authorizing an
agreement 03 Campo Dresser and McKee relating to a
feasibility study for water/sewer fees.
gut, ,
1
1
City of Denton City Council Agenda
December 16, 1986
Page Three
J. Consider adoption of an ordinance authorizing the
issuance of $S009000 City of Penton, Texas
Certificates of Obligation, series 1987 and
approving and authorizing Instruments and
procedures relating thereto.
S. Resolutions:
A. Consider approval of a resolution approving an
agreement between the City of Denton and the
North Texas Repeater Association for emergency
communications assistance.
A. Consider approval of a resolution approving an
agreement between the City of Denton and the YI,
Roses of Texas Repeater Association for emergency
communications assistance,
C. Consider approval of a resolution approving an
agreement authorizing the City Manager to sign
and approve construction plans for certain
highway traffic signals.
D. Consider approval of a resolution Authorizing the
Mayor to execute a Lease Agreement between the
City of Denton, the County of Denton and Flow
Regional Medical Center for the lease of Flow
Memorial Hospital.
•1. Consider approval of a resolution estahlishinp
eligibility standards pursuant to the Lease
Agreement between she City, County and Flow
Regional Medical Cc. ,--era
F, Consider approval of a resolution authorizing a
committee to assist the Public Utilities Board
and the City Council in their consideration of
capital recovery fees,
G. Consider approval of a resolution nominating the
Mayor for ,jppointment to a National League of
Cities committee.
H. Consider approval of a resolution amending a
remo",v ion adopted December 3, 1985 relating to
the employment of the City Attorney.
{ .~~.~.~,T r"' ~•"-..v f'Y ..~'r.4 ~ . , , ~--ter s .
City of Denton City Council Agenda
December 16, 1986
Page Four
6. Consider approval of an amendment to the employment
agreement between the City of Denton and the City
Manager.
74 Miscellaneous matters from the City Manager.
8, New Business:
This item provides a section for Council Members to
suggest items for future agendas.
91 Official Action on Executive Session Items:
A. Legal Matters
B. Real Estate
C. Personnel and/or Board Appointments
10. Executive Session:
A. Legal Matters Under Sec, 2{e), Art. 6252 17
V,A.C.S,
R. Real Estate Under Sec. 2(,f), Art. 625 2 17
V,A,C.S.
C, Personnel/Board Appointments Under Sec, 2(p),
Art 6252-17 V.A.C,S4
f F R T 1 F I C A T F
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 1986 at o'clock
(a.m.) .m.
2485C
AGENDA
CITY Of DENTON CITY COUNCIL
December 160 1986
Work Session of the City of Denton City Council on Tuesday, December
160 19860 at 5:00 P.M. in the Civil Defense Room of the Municipal
Building at which thr following items will he considered:
5:07 p,m.
11 Receive an overview report on the proposed utility rate
adjustment.
21 Executive Session:
A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A,C.S.
B. Real. Estate Under Sec. 2(f), Art, 6252-1'7 V.A.C.S.
C. Personnel/Board Appointments Under Sec. 2(g), Art
6252-17 V.A.C.S.
5:30 P.M.
1. Discussions with State Representative Jim Yarn.
Special Meeting of the City of. Denton City council on Tuesday,,
December 16, 1986, at 6:00 p.m. in the Council Chambers of the
Municipal Building at which the following, items will be considered:
6:00 p.m.
11 Presentation of Sesquicentennial Denton Hook to the Cite,
2. Receive bids for the purchase of $500,000 City of Denton,
Texas Certificates of Obligation, issue 1987,
s. 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.
Listed below are bids to he approved for payment under the
Ordinance section of the agenda. Detailed back-up informallion is
attached to the ordinances (Agenda items 4.A and 4.B), This listing
is provided on the Consent Agenda to allow Council Members to
discuss any item prior to approval of the ordinance.
A. Aids:
i, Aid N 9484 - Fxtension of bid for mobile
radios
,r
s' „'4"'ti'~~Y" r~i`~r rm~, r r +ar.Rs +-c•e y -
City of Denton City Council Agenda
December 16, 1986
Page Two
2. Bid N 9685 - Lease/purchasing financing
3. Bid 0 9686 - Ridirg mowers
4. Bid 0 0689 - West Hickory and Welch Street
paving and drainepe
5. Bid 8 9689 - Painting office complex/ warehouse
4. Ordinances:
A. Consider adoption of an ordinance accepting
competitive bids and providing for the award of
contracts for the purchase of materials, equipment,
supplies or services.
B. Consider adoption of an ordinance accepting
r,ompetitive bids and providing for the award of
contracts for public works or improvements.
C. Consider adoption of an ordinance canvassing bond
election returns.
D. Consider adoption of an ordinance authorizing `he
Mayor to execute an agreement with Haywood Jordan
McCowen and Gary Juren Architects and Company relating
to the rendering of professional architectural
services for the design of a community building. (The
Community Development Block Grant Committee and the
Parks and Recreation Board recommend approval.)
E. Consider adoption of an ordinance authorizing the City
of Denton to contract with CTIC Associates for cable
television refranchisement consul +ing se.rvires with
the amount of the contract not to exceed ,$27 840.00.
(The Cable TV Advisory Board recommends approval.)
F. Consider adoption of an ordinance approving an
agreement providing for the lease of office space at
324 Past McKinney Street.
G. Consider adoption of an ordinance establishing a
loading zone located at 115 Sycamore Street and
providing for a penalty in the maximum amount of
$200.00 for violations thereof. (The Citizens Traffic.
Safety Support Commission recommends approval.)
H. Consider adoption of an ordinance authorizing an
agreement between the City of Denton and Arthur Young
for the purposes of conducting a review of the
management/professional pay plan.
I. Consider adoption of an ordinance authorizing an
agreement with Camp, Dresser and McKee relating to a
feasibility study for water/sewer fees.
I
City of Denton City Council Agenda
December 16, 1986
Page Three
J. Consider adoption of an ordinances authorizing the
issuance of $500,000 City of Denton, Texas
Certificates of obligation, series 1987 and
approving and authorizing. instruments and
procedures relating thereto,
s. Resolutions:
A. Consider approval of a resolution approving an
agreement between the City of Denton and the
North Texas Repeater Association for emergency
communications assistance.
R. Consider approval of a resolution approving an
agreement between the City of Denton and the Y1,
Roses of Texas Repeater Association for emergency
communications assistance.
C. Consider approval of a resolution approving an
agreement authorizing the City Manager to sign
and approve construction plans for certain
highway traffic signals.
I). Consider approval of a resolution authorizing the
Mayor to execute a Lease Agreement between the
City of Denton, the County of Denton and Flow
Regional Medical Center for the lease of Flow
Memorial Hospital.
F. Consider approval of a resolution establishing
eligibility standards pursuant to the Lease
Agreement between the City, County and Flow
Regional Medical Center.
F. Consider approval of a resolution authorizing a
committee to assist the Public Utilities Board
and the City Council in their consideration of
capital recovery fees.
G. Consider approval of a resolution nominstinp the
Mayor for appointment to a National League of
Cities committee.
H. Consider approval of a resolution nniending a
resolution adopted December 3, 1985 relating to
the employment of the City Attorney.
kf. C.
l
City of Denton City Council Agenda
December 16, 1986
Page Four
6. Consider approval of an amendment to the employment
agreement between the City of Denton and the City
Manager.
70 Miscellaneous matters from the City Manager.
81 New Business:
This item provides a section for Council Members to
suggest items for future agendas.
96 official Action on Executive Session Items:
A. Legal Matters
Be Real Estate
co Personnel and/or Roard Appointments
10. Executive Session:
A. Legal Matters Under Sec.. 2(P), Art. 625217
V.A.C.S.
Be Real Estate ~w tinder .Sec. 2(f), Art. 6252-17
V.A.C.S.
C. Personnel/Board Appointments Under ,Sec. 2(g),
Art 6252-17 V.A.C.S.
C F R T I F I C A T P
I certify that the above notice of meeting was posted on the
bulletin board at the City Ha11 of the City of Denton, Texas,
on the day of , 1986 at o'clock
(a.m.) p.m.
CfTY SECRETARY
2i63C
"r as ash-s'gT,4 i)~
'a err. -E:', '+.,s
DATE: December 16, 1986
,(,..~L1 J
CITY COUNCIL AGENDA IT91
TO: MAYOR AND MEMBERS UP THE CITY COUNCIL
PROM: Lloyd Harrell, laity Manager
SUBJECT: RECEIVE REPORT ON ELECTRIC, WATHR, WASTEWATER RATE
STUDY
RECOMMENDATION:
No action is required at this time. Council input
prior to finalizing the report is desired. The Public
Utilities Board, reviewed this report initially on
November 26, 1986 and will review again at 7:00 A.M.
on Decewber 16, 1986
SUMMARY/BACKGROUND;
Management Applications Consulting, Inc. (MAC was
retained by the City to conduct a comprehensive rate
study of the Electric, Water and Wastewater rates.
The recommendation is:
1, No increase in Wastewater rates
2. A 2.9% decrease in Electric rates
(a) 0,55% average decrease to residential
b 41 average decrease to business (more
decrease to small businesses)
(c) 3.31 to 5.81 average decrease to industries
(d) 5,71 decrease to local government (schools,
etc. )
(e) 3.51 deci-aase to churches
3, A 9,S1 increase in Water rates
(a) 9.851 average increase to residential
(1) 7.51 to average 10,000 gallons/month
customers
(ii) 14.61 to larger 300000 gallons/month
customers
(b) 8.451 average increase to commerclul/
Industrial
(c) 9,261 average increase to salos-for-resale
FISCAL IMPACT:
The electric rate reduction includes slightly lower
demand charges and base energy rates. The energy cost
adjustment (ECA) will be reduced from 2.1501KWH to
2.000/KWH, A major change that will aid snAll
businesses and small churches is no demand charge for
M1~ •r .r K r _
Page 2
ui,der 5 KW demand. To accomplish this rate reduction
t'ie electric department will have to reduce budggeted
expenditure by $1,200,000. Approximately $SOO,OOO
Mill be from fuel and purchase power related expendi-
+;ures. $7009000 will have to be from cuts in
operations and maintenance.
Five (51) of the water rite increase is required to
meet 1987 budget expenditures. 9.S% of the increase
is to aid in building a reserve to pay the annual
$108000000 debt service on Ray Roberts that will be
payable in March of 1988. Another 12 to 15% increase
in late 1987 or early 1988 will also be required.
The bxecutive Summary plus selected exhibits of
proposed new water rates, +;atnr bill comparisons,
proposed new electric rates and selected electric,
water, and wastewater financial pro forma's are
included with this Council arenda item, Volume 1 of
the rate study is provide under separate cover,
Volumes 2, 3, and 4 which constitute computer print-
outs of cost allocation factors, probability of
dispatch analysis, and complete set of rate study work
papers are available in the Utility Administration
office,
PROGRAMS, DEPARTMbNTS OR GROUPS AFFELTED:
Citizens of Denton, C'.cy of Denton Municipal
Utilities, City of Denton (jenural Government.
bmitt
R ectf Weil
a Pre
pared by: ity Manager
R, e 0 Y.~ Q
Re B. Nelson
Director of Utilities
Approved:
R 1 Q I ~..G..,.~
Re be Director Utilities
Attachment 1: Rate study Executive Summary
2: Projection of Revenue kequirements
3: Exhibit V A-2, Current vs. Proposed Rates
4: Exhibit V B•S, Rate Comparison
O242n:2
Ir
~a
old
ATTACHMENT 1
Y . ~iCPlIVR sdMN~1~Y
I
,?JlR~11L d11C'
Management Applications Consulting, Inc. IKAC) was retained by
the city of Denton, Department of Utilities, to conduct rate
review studies for their electric, water, and wastewater
utilities. The Utility Dep&rtaent has performed rate studies
previously, both in-house and with outside consultants. MAC has
attempted to build upon the techniques and procedures used in
these prior studies to develop an overall evaluation of utility
rates, short term financial position, and long term revenue
requirement trends. Our findings are:
11 The wastewater utility will not need a rate change for
the coming fiscal year, nor is it likely to need a rate
increase through the fiscal period ending 1989. The
caveat to this finding is that when fiscal year 1986
revenues are finally audited and normalized, that there
will be no significant impact on the overall debt
coverage ratio or funds available for payment of return
on investment.
The watrr utility will have a shortfall in fiscal year
1987 which is likely to continue through the fiscal
period ending 1989. state relief is needed to meet
short term fiscal year 1987 revenue requirements and
will be needed again with the commencement of Denton's
Ray Roberts payments. The proposed revenue increase is
9.53 for fiscal 1987. Approximately 51 is needed to
meet short term financial goals and 4.51 is to be ap-
plied to future Ray Roberts payments. The rate study
8tc-r;ng Committee ourpo.i thgt this initial oAse in is
needsyd Fn svflrw the rake impa--I. of tho 11,1y ilriberts
project. A mechanism should be ostblished to apply
- j -
_ z z °t. an.;.c~a,-..-'f ;'.LL:.. _~,rtcr~.~% _ .z ,;r ..c ~q"„-•yz :'uCq .r _ a~
r
this phase in revenue to the future revenue roquire-
ments resulting from the project.
The increase is applied to rate classes with the
philosophy of moving in the direction of equalised debt
coverage rates. Exhibit 1-1 shows the distribution of
the proposed increase among rate classes.
3. The electric utility will see a decrease in the energy
cost adjustment (RCA) for fiscal year 1987 and a eom-
mitnent to cost containment will allow a sligkit
decrease in base rates. The overall RCA reduction of
2% will act as an across-the-beard decrease while the
has* rate reduction of 3.268 will be directed to move
toward equalising debt coverage ratios between classes.
The proposed overall rate reduction is 2.944 Exhibit t-
2 shows the distribution of the proposed rate decrease.
The overall financial picture for the utilities Department is
sound and has been supported by continuous load growth and a
strong accumulated reserve fund. Tine of day rates have been
proposed on a trial basis along with wheeling, stand-by, and
cogeneration rates for the electric utility.
A separate financial analysis was conducted for each of the
utility functions. The results of these financial models have
been used to set the overall revenue targets for each of the
utilities. A detailed cost of service study has been conducted
for the electric and water utilities. These cost of service
studies have been used to establish class revenue targets and al-
locate the decrease or increase in rates to classes based on
their respective financial performance. A detailed time period
cost analysis wins also conducted for the electric utility to es-
tablish the basis for fhe dovntnrment of innovative rAtes. The
Probability of of r.11.,i 11 m, I'. • I'l wad IJO itt Lhir
detailed time period analysis. This approach has been used and
2 -
EXHIBIT 1- I
OM
0.2-
0.18. s WAV
0.1!
0.14
Aw
b 0.1 s
a 1 M Caw"
f1Mrh ~
OAMS Caw"
1!
0M
0.04
a~u
0
11.M o1.w..
Proposed Class Increases
Residential - Average 9.85
Comma ccial/industrial 8145
Sales for Resale 9,126
Fire protection 18400
antra-Governslent
Raw Water 12.04
Treated water 8145
Total Water System 9151)
*Summer months only (May - October)
3 -
ICI
En~?'F y ,aqt iu-v^w 3."r ~F.~.4 %.¢yn~~,~.:~~ ety.«...:' 'x:' ma a . ,F' c^ •%s~
EXHIBIT 1-2
P"Pow Gobi. now owi.
o,
0
#1
-a
~4 LP a: 0-0
-a
It OP o+
-e
-ic
ode Cww"
Proposed Clogs Decreases
Residential (R-1) 0.01
Residential (R-2) -0.55
General Service (08) -8.09
Gen :c:v Pri (GP) -5.77
Large Prisary (LP) -3.28
Local Gov (01) -5.72
Street Ltq (G2) -3.11
Traffic Signal Ltq (03) 0.00
Dusk-to-Dawn Ltq (D-D) -3.11
Athletic Meld Ltg (AE) -3.58
Religious Worship (RW) -3.87
Teapary Service (TS) -1.86
*Summer motl(h,, i
4-
accepted by the Public Utility Commission of Taxis in rats cases
for the state's investor owned utilities for many years, where
possible, and where available data peruitted, the studies have
been conducted to comply with PUCT guidelines.
Throughout the nation, the utility environment and philosophy is
rapidly changing. Pressures from regulatory authorities and
economic pressures for overall cost containment are forcing
utilities to offer more services and alternative pricing
strategies to most the flexible needs of today's consumer. Com-
petition for now customerv along with the need to keep existing
customers in a strop :ompetitive position aids to this pressure.
These factors will ~orce a re-direction in planning, pricing, and
operating philosophy away from supply side projects (building new
plant) to demand side programs which offer customers a menu of,
services including conservation and load management alternatives.
The first step is for management, the Board, and Council to
recognise this transition and adopt an approach which will ensure
a stable growth for the utility. The next step is to dedicate
more resources to collecting, analyzing and utilising a full
range of customer oriented data needed to deal with these coming
issues:
9
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}
ATTACHMENT 2
City of OVA" tNeteus11ar utiligr 111110 113 of 4
1966 ku Daip Stan
koje tier Of avemse agalreaants
•/---/•MO-O-w//-Y---MYw.H-/-----N-N-----•YY•---MO-Y-' UN/NONw-w-M/--/-/ON-M-M-NYY/wN-
00"Hpblm FY 9.30-!6 FY 9.30.16 fY #-*9 IV 4635-1! FY 4-30.10
-rYr--►r--r / YwYMY-Y-r--r-rr-r-r NON/HOOrr--ww-H / NrN / /err/-/ w r-/Y/ YNY/YNa. ~rYHHN N / NN-!
Nistorical* h" N'tw •.,N-/.wwrNwH-
1 Total Opoet inp Expmus $1, 714, 660 $2,124, 626 33, 2M, 649 33, 316, 376 330641, 439
plus
2 Debt Soviet 110161609 i,121,UD 1,043,799 1,061,716 100370150
3 Capital Additicm Current Fundirsp 41,137 701612 7000 39,006 40,01
4 Not Used 0 0 O 0 0
Less
5 Other Mves" 520624 3310D0 10000 1004000 100,000
6 Non-OW*ti+q by we 143,919 331000 60,400 600000 601000
7 F" is r Cash PavNwe W rvmnt $2,60,432 13, 236, 221 $4,W, 114 34, 349, 900 34,101,190
6 Percent Chimp m 22.1% 31,30 Rem 6.66%
9 Less Debt Soviet $1101A,609 $1,121, 10 =1,013,791 $1,04,116 31,0621160
10 Egw}sr Exwm Wert
Debt r,a" 31, 629,123 $2,107, 646 3,1,136, 310 $3,tp, l62 33, 62t, 010
11,1W I
11 lrsterest portion of Debt 619,669 701,730 672,649 641,718 601,1!0
12 Depreciation Expeme 7664145 766,143 746,146 7660146 766,146
13 ["let Amnssl kimm Awirmi 3,016,621 31675,623 4,5941214 41673,096 4,116,335
14 plant in Soviet $31,919,101 331,690,024 $31,931,161 $32,076,337 $32,2 1JV
16 lass Acmlattl Depreciation $6,616,162 $7042,057 #,211,152 $8,,964,297 39,750,412
16 plus i CWIP Ow d Funded 0 0 0 0 0
17 lass Coatributiem 1449100370 14,9101670 14,910,570 U,910,6h1 141910,570
IS Eqwlsi Net plant in Soviet 10,322,616 90627,446 6,603,039 6,140,40 7,!96,101
19 Opwatirq Revem $4413,934 $4,977,130 $6,22$6,9$7 $5,4p,216 $5,706,777
141141 PavNwt or" NA 163,196 Me$$7 261,291 219,491
20 iau Pate Charge NA 0.00% 06901$ 04001 0,00
21 Not Ustl
22 Paeans (19)-(13) $1,791,401 $1,4010607 $611,773 #14,191 010,442
23 ate of Astw% (22)/(16) 17,42% 14.71% 7.11b 9195% 101674
24 An 66/11 Net^ ate of btum $752,135 6.01k
25 Debt fayes,* Patio ((19)-(1114(2) 3113 2.64 1.11 2.06 2.02
26 Funds Available After Oebt (19)-(7) $2,14402 $1,740,92 :976,111 $1,137,316 :1,102,567
27 Patum on lnvat"m 497, 700 4U,239 416, l00 44,100 466,100
Funds Available After Patum 1,6671802 1,267,663 491,716 652,266 $17,417
29 Horisisq capital
30 Cost per 1004oa1 1.3945 1.3730 1.3731 1,3732 1.3731
f
City Of Dtntcn Yttt*A*W iltiIfty ~f 4 of 4
1916 k" Doi staa~
..w.......w..•.ww...... .w..wr.w..w.......w..r.•wr.rrNl.rw..rgwNN.w...farrMr»rnr.
D~tt1'i~ial FY 9.30J1 F1f 9.3~iT
rwrw.wwr0lwlwll..........rrw+.rrwrrw..rl.r..w.w.wi..ww...... .....wlw. Y.w. w.ww.Nrwww..rrr.r.ww•
Nwanua $4,077, M
:5,226,917
0perat inp Expt M 2,124, M 3, 214, 541
0OW Awanua A=) (140,ODD)
Dobt SarviN 1,124, 5/0 1,003,199
Capital Additiom 70,522 70,122
ktum an lnwtaNnt 453,239 4950100
Working Capital 0 0
AuniMar 112p083 401,111
IOMP) Sala 30a25 3,106
$/1=pl 13130 1.3131
Incraaa (Doc"*)
i
UNIT 1114 14"1 of4
City of Dow ibrter utility
106 bw Culp St*
11004Vio IMquirwnt b*d FW N04ft
•YwlwYlw...Y11YYYw►1w11Y11wwOwYYw1~wYYY........YNww.YYNYN..Y1111Y111111. Nww 00Y10110 1Yww.Ywww►w
Doocription Fr 9-30.16 FT 9630146 FY l/30►67 fY 9.** Fr O.,*o
YAIIA.YYwY.1..YY11www111Y1Y111Y1Yw1wwYw11~Y1~1wY1YY\11YY/1wY1YYYwY11wwY111MN1N1NYYYYY►~11\Yww
O prop E>Ip M"
Personal Servlon :1,140,924 $I,439,623 $1,701,946 $t,7q1042 $1,11141266
(Capitali:od Gabor) (93,992) (76,191) (76,191) ($76,460) ($71,499)
Supplin 201,116 212,126 272,'!60 216,276 240,741
Purdwee ftw 637,019 520,454 d1t,000 MOM 97109.11
ilsintensna 4561742 736,466 677,026 MOM 07,471
ftvh red Mater 46,000 1724100 1,133, 730
Services 780,445 902,302 243,000 245,430 2601339
Im A Sundry 22, 916 26t494 37,160 300743 40,637
Atkin Trans (Non-retk n or Debt) 604, t46 3961649 524,000 639, 720 $61,309
(Other Capitalised Coats) (41460) (61,204) (676204) (250317) (250906)
Subtotal 410121035 41000,101 4,646,969 6,123,191 6,732,966
Other 0eratlnq mvei" I
not aced 0 0 0 0 0
root used 0 0 0 0 0
not led 0 0 0 0 0
rent used 0 0 0 0 O
Tap Foos 211,707 210,000 4001000 4000000 4000000
not used 0 0 0 0 0
not used 0 0 0 0 0
not used 0 0 0 0 0
Other 0 0 0 0 0
5ubtotai 211,707 210,000 4001000 400,000 400,000
Non-Operating pwenufi
Sole Of Sc+ap 750 1,000 31000 $,000 30000
Interest tnooex 182,799 640,000 293,000 293,000 293,000
011500 93,333 20000 55,000 55,000 65,000
not used 0 0 0 0 0
Aid In Constnution 53,642 3,000 31000 30000 3,000
not uW 0 0 0 0 0
Subtotal 330,724 616,000 354,000 354,000 3540000
Other Inforssltion:
not used
not used
not used
am Debts
Sales Ni11 all 3,452 31625 30806 31996 4,156
•
s_'i -s s :'a ~.e-n;.. *"?~li • z.: s t„~ ,.,i tZ;.; j R 2of4
tss~e Growth s 19M 191Y
peso I Some" 5.001 6.0%
WRI io 1.001 2.001
lurch" P&Ar 15.0% 25.001
thiotow" 1.00% 21001
NMwed alter 2o00t 30.001
S"Ic" 1.001 2.001
IN 1 Sundry 5.001 2.001
Adoin Trw (Non.return or OW) 3.Ow1 4.001
met kyow Growth Ulu Gr*A
1917 5.004
1916 5.001
1919 4.001
•xs, g- ; =.,9, if~£:;~r rare.:: , r`-s• r i. _ .:t~.
City of 1WHO 1iWAr Utility Ilya 3 of 4
1916 bts Owty *6
"ation of UIOWA IMyuh+no bo
MrRRrr-rrrrrrr.N r-rrr-rr rrr Nrrrrrr rr►NUNr-rrH...Nrrr rri Hrrr.-.rrrM►Mrr.rHwMrHrrr-
0ucriptian FY 9.30.16 FY 9.30716 FY 9.30-V Fr 9630 FY 9-30-IVI
rHUrrrrrrrrrrarwrrrr rrw HrHrH rww Hlr~-H/-~H1./r~.wwrHrrrrrrr.r urrrrHrurHRMRrrHrwrrwrw• rwrrrr
HiiT l* wrrNrH Srrrrrrr .rwr
1 Total Operating Exptnsas $4,012,0115 $4,090,102 $4,141,919 $6,123,198 $S,732,966
Plusi
2 Debt Service 1,015,693 11411,113 1,440,9Q3 1,416,441 113!5,361
3 by tuber" Pmts 0 0 O 1161/,000 11112,000
4 Capital Addition Cmut Funding 1020452 143,401 1430401 IM0356 1040403
Lass i
5, Odw kvmm 211,707 2101000 400,000 400,000 400,000
6. Non-Opsroting 1"0" 330,124 646,000 314,000 354,000 364,000
7 4011 1 Cuff Aevowe Aequ i reieent 4,641,740 $4, 651, O16 $6, 679, 293 $1,166, 691 $1, 310,126
8 Parant mamp NA 4.50 11169A 36.161 7.66%
9 lass: Debt Sovia $1,01SA3 $1,418,/13 (1,440,923 $1,415,442 $1,393,339
10 4mis i Expunsa Wort
Debt Coverage $3,512,066 $3,371,203 $4,231,310 $6,350,25/ $6,96S,M
Plus!
11 Interat "Ion of Debt 6671483 I,Op,413 1,062,623 I0O16,N2 979,360
12 Depreciation Expeme 513,232 513,232 6130232 513,232 51312'32
13 Equals Accnal kvww "im mt 40952,761 4,9781N6 5,604,125 1,1801130 10451,960
14 Plant in Service $22,161,156 SUJ611156 0,906,151 93,007,513 $23,111,917
13 Ussi Aawlatad Depreciation $7,199,021 $1,212,263 $1,125,415 $p4231,711 19,151090
16 lass Contributiom 6,1570002 1,610,144 1,/13,04 1,116,114 1,119,844
17 Plus CHIP ktid Funded 0 0 0 0 0'
16 4w151 wt Plant in Wes 6,306,13 3,136,669 5,366,129 40951,953 4,540,124
19 Operating Amw $4,4931240 $5,493,231 $S,761,103 $6,01;1,217 $6,29/,539
sue Awam k m MA 9991991 274,662 216, 395 242, 251
20 Bass IN@ Ow" m 0.00% 0.00% 0.00% 01001
21 Not Ibed
22 keturn (l9)-113) ($439,541) $514,313 tf36,233)(f1,123,M3)($2,169,421)
23 We of ktum (22)/(Ig) -7.29% 6,90 -0060 -36.8% -47.5/%
24 Avg 16.11 ktum, Ante of Return ($1,339,632) -14.90
26 Debt Coverage Ratio ((19)(lA)j/(2) 0.16 1,43 1.06 -0.21 -0.46
26 Funds Available Alter Nk (19)-(7) ($15410) $636,215 $0,399 ($1,710,411)($2,562,169)
27 A wm un Investaoot 2921300 266,111 214,900 142,490 1421450
21 Finds Available Alter ktum (446,409) 370,021 (196,301) (11852,661) (2,204,639)
20 Hw flog Capital
30 Cost per 100*1 1.3016 1.5154 1.5155 1.6156 1.3165
~,,`,.{r ;};iK'*a+m rv{;• ,fnr:'~:ria'~~4'.,;~~w xr4 .-v s •t~.F r.. a
City of 1enEOrr NIW RIMY Pap 4 of 4
1916 IMb OMirn st*
p►1►N \ N \Y\NYN\N\N►►1►►\ NpN\ N►NONYY►~►~M►N►NY►►N►NYN►Y►►YYY►►N►N\M►~►►\►►►►Y\\♦
Daeription rN, 9.30\16 $6"
N \Y9MYN \NYYYY\►►\ \►YY►\►MYN►Y►N►\YIN►►\►►Y►N\\►MYNY►Y\NrMM►MY~NN►M\M\\Y•
Aevwms 6,493,231 6,]6],193
OWrotin0 bpe na 4,090,102 4,141,969
0OW ft"M a (166,000) (]!14,000)
Debt Service 1,478,113 1,4401223
Capital Addition 143,401 143,401
ktum on I"tlnt 266,111 28419M
liorkinl capital 0 0
Mn inder 310102] (196,301)
1000Pd Sous 30126 30106
f/1000oe1 Lm 1. ]129
lrkreae (DOMMI) m 3.61#
F►9S#~~ ~"Y'om'": nrw'~,.-s. a ....a~ +t s _ ~.rc w L
A
Doff 1114 Fs~ge 1 0/ 4
city Of Wft o tMc utility
1914 nots ossip so*
Nsl ows M~ulrwisut Upt P4rsmoters
• Y►►►Y • \ i M\►\11110►N 101111►\\i •iiiM1►►NI►►►M►NiM►MMINIMIN~NiNNiNN►iNNi►MI►►1
Description FY 9.30.16 FY 9.30YSi 11f 06" FY 9630\0 fY 9139169
•iYY►ri1Y1 NiNIN►ii11i N►IM►►i \N►►\ \ Y\\YIN \N►\i \ i►IN YI►NiN \►IINiNMIN1 N►NINiMN Ii
owKinO ,
Palo I Servias f2,591,314 $3,!$72,614 $4,631,000 $4,111,909 18112,01
(Cvjitalizid Ubor) OMAN) (307,614) (400,000) (=401,000) ($412,010)
TAVIia 231,198 244,6!9 315,000 3510110 301416
capacity Portion Of Pa dw* Power 210500500 2),791,110 2616910000 2741610512 34,101,566
MOWN 514,3$7 03,10 1,2$7,000 1,300,910 1,336,161
Saviess 2190643 410,791 630,000 636,300 19,021
Ins 6 Sundry 140,331 1504015 211,000 239,310 2141 151
Main Trans (Non-wetum or Ddrt) 1,2V,666 1,314,4W 1,310,000 1,34!,300 1,40J,21t
(Other Capitalized cats) (10,163) (114,131) (132,000) (133,750) (135,911)
Subtotal 26,061, 610 29, 953, 924 34,152,060 36,011, I IZ 43, 336, 3113
Other Electric kvww s:
HTU Capacity 5661110 6.'Y,94O $71160 $7,160 $70760
YNO tapaeity 10033,110 1531010 419,260 419,250 4790250
w cowity 0 0 315,000 315,000 319,000
L'oonoW VoV Sala 3,161,470 2,613,910 1,216,120 I,it2,144 30114,301
(Eew4w Sala cats) (1,316,314) (115110611) (144,010) (1,072,314) (2,095,404)
ConKt Fees 1410000 160,000 1901000 150,000 1600000
aecar»ct Fees 16,000 15,000 15,000 16,000 15,000
Oster tasparing 0 0 0 0 0
collection 200 40000 31000 30000 3,000
Other 900000 136,000 1000000 1000000 100,000
Subtotal 31667,932 2,346,352 1,642,140 1,759,116 2,216,101
Nan-operating ky"ir
Sale Of Serail 5,000 30,000 51000 5,000 SAW
Interest InPA m 1701066 150,000 210,000 210,000 210,000
His" 25,000 9,000 100000 10,001; 10,000
Rouse Norm 31600 1,000 2,500 21500 20500
Aid In Constnution 14,000 65,000 150000 16,000 I5,000
Service linter No 164,341 164,341 1611340 164,310 16010
Subtotal 96¢,010 11019,311 466110 4061M0 4N,M0
Other Inform 101
Fuel + hrdw # Pacer 6wlrgy 20,103,110 15,120,610 141001,410 15,9121300 13,660,161
(Energy For Off System Sala) (1,316,314) (1,531,611) (6440010) (11012,314) (2,060,404)
Not Fool + Nrdwr* Power Energy 19,411,322 13,514,992 13,161,400 N,4l9,932 11,662,656
Old Mu
Sates (MM)*IjM0 6411444 6140172 702,631 737,762 M7,273
Port 2 of 4
Elq~f Awatw Q/glt(ZI 1911 1~
hrtontl Swvlat 6.001 6.001
Ha I.A 2.00%
t~pteity "left Of hwd alt POW 4.00% 26.0
ftintowto 1,001 2.001
StrviM 1.OOt 2.0%
1" 6 Sundry 1,00t 2,001
Mnn trwd (Uon•rtbn or Debt) 1.001 4.00%
brat Awtnut &vwthi Stlta & wth
Iw 6,00%
Im 6.00%
19bb 4.00%
.t~F+~ c ~ . n `k'~~7 ^ ..y`l.R+'yisae: r,~} 'mot ~ ?'i'".'{g"'.,. - "~'9` s. d k 's£" i":~'~$ `i ' _7_w "1 3.. a -.-.n'
MY of Owft tloatrk polity Peps 3 of 4
1916 we OMipn Sk*
Prgtettian of Ilswttw lMlelrti ft
•--------1--N---UN--MMN-N-N-N~N~MN~M-NON-N-MIN-~~--~~NM~-NYN-N~-ANN-MN-•
OacMpti4n FY 9.3016 FT 9.30.16 PY 9.30 1 h 9.304 fr 9.344
----N-NM-N•N-N-N-MN-1--~--M-NM-I-ON-N~N~N-NM~'N--NN-N"ac
- JNN-N-NNNN---Y-Aiifetorfal M-M-NN-N-N ~~-•NN-
I Total Operating -Las
Fual 1 ftvkm Enarpr ft6,D41,690:29,913,924 $34,65i,0~l0 =36,011,112 $43,334,333
Must
2 Dept Service
2,9S1,g0 3,3U,141 3,211,011 3,111,9Q1 3,119,216
3 Capital Additio" WmVt Futtdirtg 650,10 422,363 021000 631,320 541,00
4 Not ilaed p 0 p 0 0
Less:
5 Other Electric Aw"M 3,6 ,932 2,346,362 1,642,740 1,159,1»6 2,2!6,!07
6 NOMOwding Rtwnw 962,010 10010,341 160,140 166,110 40,440
7 Equals: Cash Aewrrte hqui reissttt $24, 941, 3S6 s30, mm =36, 29X, 511 s371 610,134 $44, 312,20
8 Percent champ NA 21.72 19.50 31304 11.131
9 Lase Debt Service :21951,420 $3,311,70 $3,217,041 $3,10,927 $3,119,216
10 Egualst E*Mes Wore
P1uc i Debt Cows" $21, 919, rIA $27,040j564 $33, 074, 470 $31, 321,107 $41,133,753
11 Interest Pao Im of Debt $11823,670 24091,001 2000b,641 109164671 11619,216
12 D"Miation Expense 1,972,60 2,055,467 2316,40 2392,267 2,272,562
13 Egualst Accrual Mwnw Aequiromin 4786,02 311117,069 37,197,497 39,430,761 45,225,620
14 Plant in Service $5210950397 $61,119,953 $6101190951 $00260,951 $6619191951
15 Last kcm mlated Depreciation $2506011270 $29,119,010 $31,235,126 133,427,193 335,700,344
16 Last Contributions 626, 316 64013M 656, 396 6h;, 316 616,316
17 Plust WIF (fond Funded) 0 0 2,141,400 ?,619,000 2,111,000
11 Egwlsi Not Plant in Service 250160,741 31,360,525 31,310,440 3114211113 32,351,221
19 Sala A vww Las ICA $33,170,615 $36,640,711 $37,422;IM $39,293,90 $40,M6,126
Im kvww Growth NA 2,470,179 11712,039 1,01,141 1,511,169
20 One Mate CNmge NA 0.001 0.00: 0.0% 0.001
21 WWI Rite Change 0.001 01001 0.001 0.001
22 Mtum (19)-(13) $71361,463 $4,453,611 $ 5,330 $Ig3,217 ($4,369,794)
23 Rate of htum (22)/(11) 26.551 14.201 0.721 2.714 -13.4%
24 Avg 16-x9 Returno Me of Netum ($1,490,416) -2.148
25 Debt Coverage Akio [(19)-(10))/(2) 3.79 2.59 1.35 1.56 -0.06
26 Funds Available After Debt (19)-(1) $11229,259 $5,282,415 $1,1310315 411783,234 ($3,447,243)
27 getwr on City Equity 1,551,644 1,619,105 1,767,30 10792,139 10822,666
28 Funds Available After Aetum 601615 3,592,710 (636,073) (9,604) (6,269,910)
29 Working Capital
30 base Revenue Far kWh OHO O 010567 0.0667 ;1561 0.0567
31 ECA per kWh 0.0318 0.0216 0.0199 MOM 0.0160
32 Total Cost per kWh 0.0661 D.0713 0.0766 0.0776 0.0127
-7 'n;.. ^ti 11
U- F
Pj .
i'.tty of Das4m Eleetrk Ytiltty 140 4 of 4
19M Hite Dot" it*
YIYNYYNY}ONIMYN}pIMMVN}NIN~NYNNYNfM}~!YlIYNMYNYYN!!N}NM}MYY~Y!}!MlMMN
Dsecriptkn FY 9.30116 FY 9."
fY}YNYNNIN}NA!!lN INNIMI M!!Y}lYINM}N! rllNYfllNN9NlMlMINIYbY}!}lYNIMIN}N!M}
Ia" =37,4?2,126
fol 14,414,619 13,151,400
Total 50,003V
~0, 511, 2;b6
Openti% Expenses 6,224,064 7,961,000
Fuel t kwduse Pareri
Capacity 23, 7N,670 26,694,060
&wv 13, 661,91'2 13351,400
Total 37,340M 39,162, 460
Total 0 i M 43,'372,916 47,610,460
Other Revenws (3,38, 693) (211094664)
Debt Service 3,3171761 302170011
capital Additions 4221 M3 632,000
ktum on lnmtwd 1,680706 14767,30
lion! Capital 0 0
Amindor 41441o256 (636, 073)
I" Sobs 6644172 702, 611
f/kgh 0.07%, 0.0766
lm we (Decrease)
77
sXHISIS V A-2 OS+DeC-!6
City of Denton water. Utility
Current vs. Proposed Rates
Rate c u e Proposed Current
Rates Rates
Residential Rate wi
3/4" x6 ter $5.00 $4.50
First 15,000 gal 1055 1.45
15,000 - 30,000 gal Suwwer 2.05 1180
15,000 - 30,000 gal Winter 1035 1.45
All over 30,000 gal Su ewer 0100 1.80
All over 300000 gal winter 0.00 1.45
Commercial/Industrial Rate W2
3/4;, Meter $16.23 $9.50
Commodity Charge/1000 gal 1.52 1.40
Sales for Resale Rate W3
Minimum Charge $16445 $150.00
Demand Charge per 1,000gal 16.00 HA
Commodity Charge 0.63 1.35
Over 3,000,000gal 4A 1.55
Intra-Government Finished Water Rate W4
3/4" Meter $10.25 $9.50
Commodity Charge/1000 gal 1.52 1.40
Intra Govornment Raw Water Rate W6
Minimum Charge $108075 $97.00
Commodity Charge/10009al 1.00 0.90
Standby Fire Service Rate W7
Line $14.25 $12.00
Lino 21.25 18.00
Metered Hydrants Rate W10
Customer Charge minimum $17.75 $15.00
Commodity Charge/1000gal 1.65 1.40
1
i
r n .
.m, ...-rwm"'"FM > ~'~y";:° sog r ,n +r _.s e.r .Y'e- C i;-•~~(,l .w.+a'fF, «x33,4 #.'N i FX
MINT V A-3
City of Denton Water Utility
Residential Bill CoxvarL"n
Current Rates vs Proposed Rates
City of Denton Water Utility Bill Cow"rison
Billed Proposed Rate "i Current Rate W1 current/Proposod
gal Sumer Winter Sumer Winter Sumer Winter
r r r r r r r r r r u r r r~ r.~ r r r r r r r rrr r rrr r r r r rr- r r r r rrr
0 $5,00 85000 $4.50 $4030 110114 11.114
11000 6655 6055 5095 3,98 10.08 10008
21000 8.10 8010 7.40 7.40 9.46 5x.46
3,000 9165 9.65 8.65 slow, 9.04 9.04
4,000 11.20 11.20 10030 10.30 8.74 8.74
61000 14.30 14.30 13.20 13,x0 8.33 8.33
81000 0.40 17.40 16010 16.10 8,07 8.07
10,000 20,50 20,50 19,00 19.00 7.89 7089
12,000 23.60 23.60 21.90 21.90 7,76 7.76
14,000 26.70 26,70 24.80 24.80 7.66 7,66
15,000 26,25 28,25 26425 29.25 7.62 7,62
17,000 32,35 31,35 29.15 29.15 10.98 7.55
19,000 36.45 34,45 32.05 32,05 13,73 7,49
21,000 40.55 37,55 35030 34,95 14.87 7.44
23,000 44:65 40.65 38.90 37.85 14,78 7,40
25,000 48,75 43.75 42.30 40075. 14.71 7.36
28,000 54.90 48,40 47,90 45410 14.61 7.32
300000 59000 51.50 51,50 48.00 14.6 7.29
33,0011 66.65 56015 56,90 $2035 17.14 7,26
36,000 74,30 60,80 62,30 16070 19.26 7,23
39,000 81195 65,43 67070 61,015 21,05 7,21
430000 92015 71.65 74090 66.65 23,03 7.16
460000 99,80 76.30 60.30 71.20 24.28 7,16
49,000 107,45 80,95 85.70 75,55 23038 7415
50,000 110.00 82.50 87450 77,00 25,71 7.14
53,000 122,75 90,25 96.50 84.25 27.20 7,12
60,000 135,50 98.00 105050 91050 28,44 7,10
Block rrrr Charge
Proposed Rate R. Summer Winter Sumner Winter
Customer Charge 5.00 5.00
First Block 150000 15,000 1.55 1.55
Second Pint-k in, nnn 3x1,000 2 r nr+ 1.55
Third Iti l r" I. ut, nnxF 30 , 000 2.155 1.55
4 s °SG w. 'f sa e,h i7 si'j'..'~i.:r'•",B 3r T,-,..`'` 3 `~tA: "`~~s-~.~:~-~:,r +sp ms pa« *~iv,~#`~~~;r+>~~
4.5
ATTACHMENT 3
RYHISIT v A-2 Ot~DeC-q0
City of`Oenton Water Utility
Current vs. propoaed Rates
date u e Propos ur'n`"'
Rates Rates
Residential Rate WI
3/4" meter $5.00 $4.SO
First 150000 gal 1.55 1.45
1$,000 - 30,000 gal Summer 2.05 1180
15,000 - 30,000 gel Winter 1055 1145
All over 30,000 gal Suamer 0.00 1180
All over 30,000 gel Winter 0.00 1.45
Commercial/Industrial Ra1;a w2
3/4" Meter $10.25 $9.50
Commodity Charge/1000 gal 1.52 1.40
Sales for Resale Rate W3
Minimum Charge $164.25 $150000
Demand Charge per 10000gal 16.00 NA
Commodity Charge 0.63 1.35
Over 3,QOO,000ga1 NA 1.65
antra-Government Finished Water Rate W4
3/4" Mater $10.2.5 $9.50
Commodity Charge/1000 gal 1.52 1,40
Intro-Government Raw Water Rate W6
Minimum Charge $108.75 $97.00
Commodity Charge/10009a1 1+00 0190
Stane',by Fire Service Rate W7
6" Line $1445 $12.00
on Line 21.25 18600
fietered Hydrants Rate WRO
Customer Charge Minimum $17.75 $15.00
Commodity Charge/1000ga1 1,. i;5 1.40
J
i7,;d T€ "5' f-fir q r ~ t w.r N7 +T,n «rg Es." ~ r a ra
IMISIT V A-3
City of Denton Water Utility
Residential Sill Comparison
Cusrs»t Rates vs aropo-ed f~ats-
City of Wnton Watot Utility Bill Comparison
Billed Proposed Rate V1 Current Rate Wl Current/proposed
gal summer Winter Surer Winter surer winter
•--w•--~ ♦-w,--rwr- --w-----
0 $5.00 $5.00 $4.50 $4.50 11411• 11.111
1,000 6055 6.55 5.95 5495 10008 10008
11000 8110 8.10 7.40 7*40 9.46 9.46
30000 9.65 9165 0.85 SIBS 944 9.04
4,000 11.20 11.20 10.30 A0.30 8.74 8.74
60000 14.30 14.30 13.20 13.20 8.33 8.33
8,000 17.40 17.40 16.10 16010 8.07 8.07
101000 20.50 20.50 19.00 19600 7.89 7.89
12,000 23.60 23.60 21.90 21.90 7.76 7.76
14,000 26.70 26.70 24.80 24.50 7.66 7.66
15400 s8.25 28.25 26.25 2645 7.62 7.62
17,000 32.35 31.3: 29.15 29.15 10.98 7.55
19,000 36.45 34.45 32.05 32.05 13.73 7.49
21,000 40.55 37.55 35,30 34.93 14.87 7.44
23,000 44.63 40.65 38.90 37.85 14.78 7.40
25,000 48.75 43.75 42.50 40.75 14.71 7.36
28,000 54.90 48.40 47.90 45.10 14.61 7.32
300,000 59.00 51150 51.50 48.00 14.56 7.29
33,000 66.65 56.15 R6.90 52.35 17.14 7.26
360000 74,30 60.80 62,30 56.70 19.26 7.23
390000 81.95 65.45 67.70 61.05 21.05 7.21
43,000 92.15 71.65 74994 66.85 23.03 7.iS
46,000 99.80 76.30 $0.30 71.20 24.28 7.16
490000 107.43 80095 85.7u 75.55 25.38 7.15
50,000 110.00 62.50 87.50 77.00 25.71 7.14
$5,000 122.'35 90.25 96.50 84.25 27.20 7.12
6A,000 135.50 98400 105050 91030 28.44 7.10
Block Charge
Proposed bate R Summer Winter Suvmr Winter
Customer Charge 3.00 5.00
First Block 150000 15,000 1.55 1.55
Second atom-k in,nnn 30,000 2.n, 1.55
Third 11,1 • 1 !0 fillo 30,000 2 .55 1.55
l?5 ~.°'sryr~,~- M1^,'C. kr~va~...ws+ss ~..E"?~" c "~5` `~i,~,,i .s. .+c...~. a r.3'c ar• ,1p~;sa.. . .,y } ~
X"'WINIT A V•4
City of Denton Water Utility
CoarrcLal Bill Corparison
Current Rates Vs Proposed Rates
City of Denton Water Utility 8311 Con Wison
Billed Proposed Rate W2 Current Rate w2 Current/Proposed
gal Sussier Winter sus r winter Suswier Winter
wr rrwww wrw---wr rrrrrw.uw rrwr wrr wwrrrww www-wwr wwwwrww
0 $10025 $10.25 $9.50 $9,50 739! 7.891
2,500 1445 14.05 13.00 13,00 8.08 8.08
5,000 17.85 17.85 16050 16,50 Sol$ 8118
10,000 25.45 25,45 23,50 23.50 8.30 8.30
120500 29.25 29,25 27.00 27.00 8.33 8.33
150000 33,05 33.05 30.50 30.50 8.36 8.36
170500 36,05 36.85 34.00 34,00 8,38 8.30
20,000 40.65 40.65 37.50 37,50 8.40 8.40
25,000 48,25 48.25 44.50 44,50 8,43 8.43
35,000 63.45 63445 58.50 58150 8,46 8,46
40,000 7145 71,05 65,50 65.50 6.47 8.47
45,000 18,65 70.65 72,50 72,50 6.48 8,48
500000 86.25 65,25 79.50 79.50 4,49 8.49
55,000 93.85 93.85 86450 66.50 8150 8150
600000 101.45 101,45 93,50 93,50 8,50 8.50
65,000 109.05 109,05 100,50 100.50 8151 8151
70,000 116.65 116,65 107.50 107,50 8651 9151
75,000 124,25 124,25 114.50 114,50 8,52 8,52
800000 131,85 131,85 121,50 121,50 8452 8.52
85,000 139,45 139,4S 128,50 128.50 8,52 8,52
90,000 147,05 147,05 135.50 135.50 8152 8,52
95,000 154,63 154,65 142.50 142.50 8.33 8,S3
100,000 162,25 162,25 149,50 1,49,50 8.53 8.53
110,000 177,45 177,45 163,50 ALSO 8,53 8.53
120,000 192,65 192.65 177.50 177,50 8.34 8.S4
130,000 207,85 207,85 191.50 19115' 8,54 8,54
140,000 22345 223,05 205,50 205 SO 0,54 8.54
wrww Block r...-~ Charge
Proposed Rate R Sommer Winter Summer Winter
Customer Charge 10.23 10.25
First Block 0 0 1.52 1.52
Second Fork 1,712 1.52
~.„s. rR ~g~;~'I~4Si~ ~;~.o" , 7'~sZ" »'N'. aF' +aFy~.~„'~'q'~.ysrs 'S.i z zkyr x ✓ - MIDI? A V-S
City Of Denton Water utility
Resale Bill Comparison
Current Rates vs Proposed (fates
City of Denton Water Utility Bill Comparison
Billed Billed Proposed Rate W3 Current Rate W3 Current/Proposed
gal XGD Demand Summer Linter Summer Winter Summer winter
' w r r w r r r r a rr r rr r r w r r r r r rw w w r ww w r w w r w r a a r r w r w Tar a~ rr r a w r r w a r
237,700
13,4i'i,000 894,333 $22,924 $22,924 $21,390 $18,264 7.17• 25.51•
80581,000 247,000 9,516 9,516 13,409 11,734 -29403 -18.91
8,305,000 359,800 11,147 110147 12,953 11,362 o"..3.9S -1.89
6,786,000 3160200 9e492 9,492 10,447 91311 -9.14 1.95
7,429,000 371,000 10,774 10,774 11,508 100179 -6.38 SIBS
st994,000 3940300 12,133 12,133 140090 12,292 -13.99 -1.29
71546,000 487,300 120709 12,709 11,701 10,337 6.61 22.94
8,930,000 483,300 13,517 13,817 13,965 12,206 -3.35 10.74
91572,000 483,700 13,927 13,927 15,044 13,072 -7.42 6.54
210824,000 657,773 24,431 24,431 35,260 29417 -30.71 -17.50
16,397400 890,900 24,742 24,742 26,305 22,286 -5.94 11.02
Block Charge
Proporid Rate R Summer Winter Summer Winter
Customer Charge 157.88 157.08
First Block 0.63 0.63
Li~,,,•n +.:It<., i 16.00 16.00
Alto Comparison Exhibit V 8-5. Pass 1
Rots Schedule ----present Role---- ----Proposed Role---- ---Comweats---
Swmor IMlater 64101010.r Winter
Residential $*twice (A-11
Customer Facility Charge $5.50 16.50 15,50 $6.50 No rata change Is proposed.
Energy Charge 0.0465 0.0406 0.0466 0.0466
Residential Service (R-2)
Customer Facility Charge 10.60 $6,60 $6.60 16.50 No rats ehsage, is proposed.
Energy Charge - tat Black 0.0665 010616 0.0646 010616
Energy Charge - 2nd Block 0.0615 0.0465 0.0616 0,0466
General ServIr.1 (GSI
Customer Facility Charge
single P,Iaa $10.00 110.00 110100 $10.00 Hate reduction is proposed.
Threo Phii+ 16.00 16.00 16.00 16.00 Dualining energy block I611141ed.
Demand Chi ;a 6140 6.40 5.76 6.20 First 6 K110 are mot billed,
inergy ^ha ;a
First 01::0. 0.6364 0.0366 0.0760 010760
Second 0;onk 0.0366 0.0365 016360 0.0366
General $or , Primary (GP)
Customer = rily Charge 140.50 141.60 $46.00 $46.00 Rate reduction Is proposed.
Demand Chi 6.20 6.26 6.15 6,76
taergy Cha ;r 0.0325 9.0326 0.1300 0.0360
Large Prlmse, rLP)
Customer Fitilily Charge $46.60 141.6.0 $46.00 $46.00 Asia reduction Is proposed,
Demand Charge 1.00 1.40 6.66 6100
Energy Charge 0.6306 010306 016300 0.0300
Local Government (Oil
Customer Facility Charge
Single Phass 110100 $10.60 $11.10 $10.00 Rale reduction Is proposed.
Three Phase 16,00 14.94 16,60 16.60
Demand Charge 4.00 4.20 436 4.68
Eoargy Charge 0.6350 0.0366 6.0326 610396
n
z
y
A
Rata Comparison Exhibit V 8-6, Pate 2
offset Llghling (02) 6 Dusk-to-Down Lighting (0-0)
--Present Rata--- ---Proposed
- - Rate----
Llhl Type--- -02- W- -02. DD-
low sod?" Vapor ~ $4.70 $6.20 $4.61 $6.00 Rate reduetlos Is proposed.
26011 sodium vapor 1.10 11.20 0.60 6.00
410W Sodium Vapor 6,60 10.10 0.26 1.16
176W Mercury vapor 6116 546 5.25 6.16
250W Mercury Vapor 6.16 7.05 6.26 1.76
40" Mercury Vapor 6,35 10.13 0.10 10160
f0011W Mercury Vapor 15.30 NIA t1176 NIA
Traffic Signal Lighting 103)
Energy Roti per kWh $0.0400 10.0110 No rata choose Is proposed,
---Present Rate---- ----Proposed Rata----
Alhlat:c FrA : Lighting (AF) Sunnier Winter Summer Winter
Cusl Fool as Charge
Single F its 120,60 120.00 $20.00 121,00 Rate reduction Is proposed.
lhfes Phite 30.00 30100 30.00 $0.01
Snarly Chor;o `
Peak Ssat:o
Off Pa Period 0.0110 010410 0.0375 1.0175
On Pea 'trlod 0.0620 010620 0.0150 010150
Off Pea ?Isom
Off Pt. Period 011410 0.0110 0.0375 1.0376
On Pe, 14riod N/A NIA N/A MIA
Demand Cho, It
Peak Sea•:,
Off 1116i Period $1.00 $1,00 $1.10 $1.01
On Pao, ?erlod 4.10 4110 4,64 4.60
Off poll :aason
011 Pea; Period 1,10 110'0 f.4o 1110
On Peo; Period NIA NIA NIA N/A
Raft/loos Warship Service (flW)
- --Pircsent Role---- ----Proposed Rate....
Customer Facifrlisn Charge summer Winter Ummer Winter
Single Phatt $t0.00 110.00 $10.01 $16.00 Rats reduction Is proposed.
Three Phase 15.10 16.00 15.60 16.10 Declining sner/y oleo: Initiated.
Enefty Charge 700 KWH 0.6360 0.0350 0,0760 1.0760 First 5 M are sot billed.
Energy Chs( ge 700 KWH NIA NIA 1.0326 0.1326
Demand Chargt 4.26 4.26 3176 3176
4JNS t N@-
ienptorary Service ITtI Exhibit Y 11-6, Pare 3
--Present Rata---- --Proposed Rate
Customer Facilities Chargo -Sumner Winter Sumoser Winter
tingle Phase 410.00 110.00 110.00 016.60 Nate reductfea Is proposed.
Three Phase 16100 15.00 15100 15,00
Energy Charge 010610 010610 0.0060 0.0060
Standby service (SP)
Firm As Available Mnic
Customer FociI Mae Charge 146.00 145.00 146.00 New rata schedule,
Demand Charge 6.02 1.31 4.15
Energy Charge 0.0300 0.0300 010360
Tlms of Up* - 3ensist Service (TOl
Facility Chergt Present Proposal 1 Proposal 2
Single Pha.~ 020,00 110.00 626.00 Proposal 1 provides for an across
three Pha,• 30.00 W ou 30.00 the board reduction in the TO rate
equal to the radvelloa in the as
Enerrr Charge rate. No changes to fire time
Peak season periods.
Peak Hours 11010400 10.0060 00.1025
011 Peak H-.rs 0.0300 0,0216 0.0460 Proposal 2 ellmlostia TCU demand
Off Peak Se): 010350 010326 NIA charges and narrows. the on peak
Demand Charge weekdaysoanduweokeadndays 00 -11:00
Peak Seeson
Peak Hour: 10,16 10100 N/A
Off Peak r+,: +'s 3.26 3.60 N/A
Off Peak Sea 1 6,40 6.00 N/A
1
If** of Use - Priaairy Str,llcs (TP) Exhibit v 0-6, Pale 1
Present Proposal 1 Proposal 2
Facility Charge $60,00 050.00 $60.00 Proposal I provides tot an 40:064
the board reduatioa In the TO rata
e4u41 to the reduellon In the as
Rattly Charge rate. No chaos*$ to the time
Peek $eaata periods.
Peak Moore $0.0000 1110.067'6 $0.1200
Off Ptak ,Aura 0.0$00 0.0000 0.036 Proposal 2 allaritatea YOU dwand
oil Peak 366san 010360 6.0360 N/A charges sad aarreeas the on peak
period to hours eadlol 13:00 -t0:$#
Demand Charge weekdays and weekend days,
Peak Season
Ptak Hours $0.76 $0.60 N/A
Off Pest Hours 3.25 3.25 N/A ,
Off Ps43. Season 5110 0.26 N/A
Time of use - ",+Idenllal Service ITR)
Proposed
Rate
Cusloator Cho( g• $10.00 No time of use rate was previously
Errory Charge offered residential concuners,
peak MOura 0.1125
Off Peak H::"s 0.0600
Interruptible ice IPI) Present Proposed
Facility Chi 610,60 $16.00 Rate reduction Is
proposed,
Inergy Char; 0.0300 010300 Ulacount I►om LP everppy charge
Demand Chargr 6150 1.60 Is eliminated. The discount from
the LP den,3nd charge Is Increased
to $1.00
_ .w
L
s" --!.'7. -:.sc r..: +n na •.k. .y .,.y , - k Cy ` A F-y
CffV of DENroNt TERM muNram sumomo i DENTok raw yovoi i TELEPHONE (s in QAAgwy
wke of aF* city ;Fbw a
M E M 0 R A N D U M
TO,, Mayor and Members of City Council
FROM: Lloyd V. Harrell, City Manager
LATE: December 12, 1986
SUBJECT: Representative Horn Information
With regard to the discussions we will be having Tuesday
evening with Representative Horn, I am enclosing some TML 1986
resolutions that may be helpful to you,
oy arre
City Manager
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k, ti 3Cf4+t 14'W itt'.V~r;,+ I? : ',rJy jrl,;,. t! J'xwrtt Ih Chra'-
w..._..~. r a4 et rise; Sn ro cisd in this C'cl=w~2s ,dots; rt a?
a t t usd : ~ tr»:*r~+td hvtqu fix apprc val
. r~ ' ~ l~ t~tr Fx:ard 1,f f3fttt7ws vh~.il 1~ facet a
!4A RLSOLMON
> tt!fE3tµ/I/mt I. ii
ULCOMMMMON TO RE dw.
A«~ nE+' #7['d?Vtt',t 4.. r o- t.lYftNf~ t)[15S1(~c!fz• Jry~'~_-
o°! .1'I.et": Wl Y`ll µlh~4 r.l ClTfmlllC~fl
WHE&ZR. :'T*Mroc=t *WA4*W itxeec~fdw 0 MtObm* of d-,e Annual t::nnferrrue f~
NUM-1 oftl uv%k a tf *m"" vbetl hAve hnm a&I.-:19 a'rq it m"Jlxiey SN
WHMAI it the vtfi~c> i P- e~ct m+^rEtkrt'" x
'tFR~tstcYte r~fthre C;nnt m ete~t ;Irni •~+:,aI n at
4147 T)vff C-owftumou iv r:..nmeit:,tl to ..rrtlArr #.~iy'
fzevn&cirX+a t rnnn:irUe+.. A roc>)rgOSl
•"tt:f iQ4EiFf' 1CafCti°yklx.FRIV! lit an P.'y6lel 4tR"2 tC &f'trA'r tr,, rrr_ ;fits,. r4% 1 le*Al , ti +d r'f 1
~E~('r'tHfU~•.fl r)7fKi.~c'~i,C n~t1u'R},y.
• <A # 3 tPre~ 3'kTR• : '2t~~ &Qi&Llr _ ,i ie( 'rte K + sr, r , CA ~ ,
lr .Y'~~°~sr q* cCili]ff) rwr of rl-w Pa2t'
YLi . #.Nift: (79-jr) lil- I, )T.Qy ;A, utl4"r-,f !r ,M ow lloor
C3Gx ' +i ~t vp , satrsc€~ita~rc'sv si. r arty +,c) try tfw moubero6c, In the ixm3nmi i
7 c#.f~ .etitx~iurv C;,:eiL:litt~: ~aat Ar~t~rodC.,oa~mu~;rne!y b'f a r.rt~l~~clr
Aim
- i~lirwroa~ of t•~ -it` `moo ate: ~f
;1c+*t by said Cosnmttithaet aldowbV r prat"doayal;`n►` nature wo +ri eb4d41t~taaiaEA
ll'l Alm AMOVED at He,wn*, Tears this L 1 to sabd" of murA-'.psi electric sysoaio altar side snit
day of i7t4pdber, Im WHEREAP, Kure is no awgftd medvxd ii W of retail
a~lnetlttC, of d"**v;
WOSV, nMEFORE, BE IT RE!iOLVF,D by thedtd*tsa
IAA 74 UTKW assembled at this 74th Anutral Conference of the Tons,
5L4TMT12JCi _ 'ice SIB Ii Lesaat that die Texas Murldpal League hairs •
STATB COM STRIYB TATb4T!$, 23 arot* mood std laderskup role in samri'ng dot the Temaes
L tetun dos taut wx the ehtagauets aaenadntt of-L-ki-
W"MIA& der roes O0 ctsuuet from dw Coy c..i Asada to LC M fs its e6viaS s aR*.
sanaarr") m+amaet♦fe a e err arse of tote and In opp owr4 say k0dadon which would plw; a say pails-
ter vials With s lkty owned and operaatc' mutadpo'. udky systara unda the
WHEMLAAdwomr emt bkk2eass4aeme ntaltisle the use of of fire PttbFlc Utlhcq Comunfaaicgr, eaf Te sas
~iii►ootn t+ W pea Pusses tit himttaatlSpaGlrxy FASSM AND APMOVED at 1•bwaom, 1,'etws this 1 ads
daty of Oaober, 1996:
4HUMA.S, dwae isa tired for all Tome dales to hart tiaa _
o +ra niey to us this snots a ffident aoeapetidw sAW
EA RES14MAJTUW
ING /JAENDME?,tM TO
V~' thosais a need to not the competitive waist OPPOS
Prof Pry r terrier ( calling for THE OPF'N MEETING LAW
s amtreaat'stimhe and efifatt u dsae tm the raint4mere of W IREA% Pm=w 'r1ta, in the wx w oaFdi+dt buNnees,
e pao&w% or aousawtkm of lmprovemmt sl in a&bjoa to arc plowd Me revere disad wav w!nan Mess , nd freec7otr
dte NA ttsdiiwlow procwtowax; and ta( cabal escha nge v m hampered by 7prenwom public disclo-
WTIERSAA Aw* is a nesdto wasitit xmx* amid imunancr SUM 611.4
ic roredne lams pew
i~, ~IT ItF~ by * e deies4ft vi Wo and fair sysesatros for public anti
diaciosure;
wwabled at." 74* ul Cotrfaeow of••' the Testae , BE IT RESOLI&D by the delegates
Mass 4ul Lague dwe-tbe 7 ?alt. asdorsaa poop of m memaW-4d err d ik 74th AnmxA Conference of the Te=s
atinesdsarear t* 2360s, wW," tatxldr (1) repeea'i the popuf la[aa+d;~ai I pgpiae tint hire T'erar Mussidpaal C vague ada•
taboo I4aikt of 50=0 or meeae foe the apph abi* of the mw4aatlir' vpoa OW axnaidment of else open meeting; law
COlwpltit* AaNOW proposd'ptoaett, (2) a mO the seated ' '4'Xim i open ehm utive sm*m to the public and "t
ptu?usd pwass to cover service contracts, and (3) add meadhL sad oppose any ,40446M wddelks wtmtdd add further
insurance and insunubce-ce6oad services to tits list of exxmp~ prom&w l requirements to the tnadoc t► by ' which City
ted p"xm aamsn, and duets :.c Fj*c Dkiwor and his Councd# y04 other pubt - bodies 'their business. '
stiff to t* A measures do amiet in its pow4t, AM urges 4 P~7''r11N~7 APPROVFD at H66won, Text this I Ith
wombeertkioii:.xWdurily tocrxhad dseit representsuves in day of Oo4oi, 1986,
the Legislaure to inform them of the great importance of this -T
bill to every city in Texas and to solicit their support in ■A RESOLUTION
passing It. SUPPORTING) A CAP ON
PASSED AND APPROVED nt Houston, Texas this 1 Ith TORT CLAIMS AGAINST CITIES
day of October, 1986. WHEREAS, damage awn, da are going our of control and
insurance coverage for Texas cities is either unavailable or
p.ohibitive in cost;
0 A RESOLUTION NOW, THEREFORE, BE PC RESOLVED by the deiegates
OPPOSING CERTAIN CHANGE-S IN ELEC MICAL assembled at this 74th Annual Conference of the Texas
SUPPLY TO THE STATE CAPITOL COM~PM Municipal Leatpte that the Texas Municipal League study
WHFREAS, the cities of Texas mcogtdar s preamdent. and recommend trap on Tort Claims awards against Texas
settlag ttsessure ahkdn m.y bat dices by cis! 3'daas L egitlsattre cities, or recommend a return of sovereign immunity for
when the body decides whether to crtntfAue receiving elec Tort Claims against cities; and
trice] saxtV* $ram the City of AuNn or begin receiving BE IT FURTHER RESOLVED that the Texas Municipal
dent:ttic IkiwksefiststheLormwCalbtadoWwrAuthority; League paMclpaw in the efforts of the Texas Civil Justice
and League to raduce the tort liatrllity of Texas cities and to
WHEREAS, t w cola of"A'eats we of the opinion that the co udnerce in gavel.
Testa LetgisWure atxtirtg such a precedent t. abandoning PASSED AND APPROVED at Houston, Texas this I Ith
City elf AuMn el,ectrpexal esevioa In order to recelve service day of October, 19,95.
from the LCRA would grove to be an unwise and potentially
dangerous precedent for Term municipalities; and
WHEREAS, a certificate of conveniene and necessity has ■ A RESOLUTION
been grahited by the Texas Public Utility Commission to the OPPOSING MUNICPAL LIABILITY UNDER Y
City of Au-pin pledrgtheTemState Government Complex THE UIDIOENTC HEALTH CARE AND
within the service rtes of the City of Austin; and TREATMENT ACT
WHEREAS, munldpal revenue bonds are issued only after WHEREAS, those Cities having created Hospital Authori.
careful fore cudeg of futuro revenues from electrical service ties have been made liable for the coat of delivery of health r
,
Tame Too" & city a 20
i
care to indigent residents under aid Indigent Elealth Care Ann. Civ. Stat. Art, 2368a requires that cities may not
and Treatment Act; and expend more than certain altiounts without comply',V with
WHEREAS, It U the opinion of the cities of Texas that the competitive bidding procedure of the Act; and
payment of taxes to Counties for indigent health care, and WHEREAS, it would save cities money and provide More
payment of taxes to Cities for cost of such service subjects flexibility to be able to participate with developers in corn
the residents of cities to double taxation; struction contracts which have been obtained by the devel-
NOW, THEREFORE, BS IT RESOLVFt the de'viittes opers without competitive bidding; ,
assembled at &a 74th Annual Conference of the Texas NOW, THEREFORE, BE IT RESOLVED by the delegates
Municipal League that the Tens Municipal League seek sssemUed at this 74th Annual Conference of the Texas
legislative action to remove municipalities' liability under the Municipal League that the Texas Municipal League support
Indigent Health Care and Treatment Act (Article,4438f, legislation which would aniend the Bond and Warrant Law
Vernon's Texan Civil Statutes), of 1931, Vernon's Ann, Civ. Stat, Art. 2368a to allow cities
PASSED AND APPROVED at Houston, Texas this 11th toparticipare with developers In the construction ofrequired
day of October, 1986. public improvements without the neceWty of competitive
bidding.
- BE IT FURTHER RESOLVED that such legislation should
■ A RESOLUTION also contain safeguards to avoid unnecessary loading of items
RELATING TO THE PLACE OF PAYMENT' of cost, collusion and other abuses.
OF THE CABLE TELEVISION TAX PASSED AND APPROVED at Houston, Texas this 11th
WHEREAS, revenue sources for municipalities are not day of October, 1986.
unlimited; and
WHEREAS, the Comptroller of Public Accounts issued"
Rule 3.313 Cable Television Service (Texas Tax Code Ann. ■ A RESOLUTION
Section 151,0101, 151.0033,151.006) effective October 2, AMENDING THE TAX INCREMENT
1984 and ruled in paragraph (1) (1) (A), as follows: FINANCING ACT
"(A) If a seller has only one place of business and that WHEREAS, legislation should be proposed to be intro-
place of business Is inn taxingcity, all twies by theseller are duced in the next session of the Legislatum which would
subject to city sales tax breed on the lom-ion of that place r,,' amend the annual reporting date in the Tsx increment
btuiness. This applies regardless of whete the delivery of Financing Act to 90 days after the fiscal vecT ezd to be
sere .e occurs within the state." (emphasis added); and submJtted to the Texas Attorney General Office;
WHEREAS, taxfb collected from city residents which are NOW, THEREFORE, BE IT RESOLVED by the delegates
unavailable for expenditure within thatcity impose a burden assembled at this 74th Annual Conference of the Texas
upon the taxpayers in such city where such tax is not offset Municipal League that the Texas Municipal League support
by a corresponding benefit; and legislation which would amend theTax Increment Financing
WHEREAS, taxes Ievied on community antenno television Act to provide the annual reporting date to the Areorney
service do not remain in the city where the service is taxed if General as of the fiscal year end and due to the Attorney
the Cable Television supplier does not maintain full service General 90 days after the fiscal year end.
in that municipality; and PASSED AND APPROVED at Houston, Texas this 11th
WHEREAS, as a result thereof, such service tax revenues clay of Octolx'r, 1986.
unfairly benefit another city or political entity merely by
reason of Cable Television (,Tice, location rather than whcrc
the service is rendercd and taxed; 4; RE.SOI-t I I ION
NOW, T11F.REFORE, BE IT Rl3S()I.V;,D by the delegates I-NDORSiNG it Ili 91 1 EMIiRGENCY
assembled at this 74th Annual Cor,'erence of the 'Texas COMNWN'(:AJIONS SYSTEM
Municipal League that the: Texas Municipal League adopt ,a WHEREAS, the spce;i, provision of , mergenc:y service is
position calling on the Texas Legislature to aniend exist r vitally important to cif ens' health, .afety and welfare; and
taxing statures which direct remittance of sales tax or any WHEREAS, thetechr Aogy is cum:ntly available to provide
portion thereof to the city where Cable Television Service such services; and
maintains full service offices wheresuch tax wasco!lcc,ted for WHEREAS, 911 emergency cemmunications systems can
Cable Television services cold in another municipality, and be funded by user .aees;
in the future cause municipality shares of Cable Television NOW, THEREFORE, BE IT RESOLVED by the delegates
taxes to be remitted tothecity wheretheservice is rendered, assembled at this 74th Annual Conference of the Texas
as in electrical and other utility services. Municipal League that the Texas Municipal League support
PASSED AND APPROVED at Houston, Texas this 1 lth and endorse .'he concept of the 911 emergency communica-
day of October, 1986. tions system.
PASSED AND APPROVED at Houston, Texas this 1 lth
day of October, 1986.
■ A RESOLUTION
SUPPORTING LEGISLATION AMENDING
THE 13OND AND WARRANT LA W ■ A RESOLUTION
WHEREAS, many cities have policies and ordina xs autf,- PROPOSING THE IMPOSITION OF A
orizing partidpation with developers inconsttucti ig cywre I SALES TAX ON MOTOR VEHICLES
public Improvements; and Wi iEREAS, TexAr cities are experiencing the loss of federal
WHEREAS, the Bond and Warrant Law of 1931 Vernon's funds from various sources including Revenue Sharing; and
21 • fvn.rmher 1966
ill
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% : c ate` _
014
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r>AL'~5~1lE'~
c t.~ ahstl btr ttts} al<at p(Tarts dirate tfra
` . ittat;lil;" e every maim rst+aci &-on '
bersbtapitothr.aw WffWAS: darn SclurCe of
an +tr It ' t c , L+ut it die tit . tuxari d razveatttai►tY 11R, s astax as s kx w,~er
# >p outalde of an b w, "dier isatepaai s ' sdecs itk>itttt t
m nr{ama# dty, &t o Mae Per cxemt of every WW, M SK)F 4 & IT PXSS0LVW by the MegAf
retail sale ofemI mottnr vehicle "d in ties state apenbled at this 74th Aruuol Co~ of the Tcns
";l ~w ; , to the octtsnty in whdch the to m,mjtkl Lriqw, that the Tt *00*W Le" support
,f aide is locatrd, do ted to dwe R Rod and Build- k*t t which wi Ii bn»ckt+ tieclltilffatf!°tl~ state soloo t= to
inK ROUL inr_ludr. ta"tuxt of ✓Ytu, ri, J" Easton growing rettcx of
NO's'r';fi.rF;t )ftI 0'f-;"•)1:`+/'P,r)I'iytfltdelr9tlt I't•x.t5CA sM,ldny,iRtttol.untitll,lrariempt~onsfntf<XAJvVAw,
r,:~tcin(ti;~ •4 : ~ 1! I' t n...=tf t r,I:It,lun, t Ile tltr 'Ic;t,iw Inr;<,(ttilne, ti'tedti-ral bilk, &+U1 rnecll(al rv!ce°U.
1~itmkA ~ A ; ui tunnlil'' ! 1,ILSST:li) ANN API'Ro( , 6D m Houatol1, 'I OAM this t lth r
,day of Ot toi-&r, ItJNe. 'f
Cilekl9lc,, i :IUI
tall{('1'uc',',n4` L;,~ il 8AIt P,01-(Jilt)N
t4' •~~,Ily r„ , r t, ; ,s,. s c,t4vr.: it ri,; ib.lFNO NG'11-1:. SAI E:S AN[A 1XIF TAX
(r~:s t„ !r,r~lA . ~,a,sen; thr,,, i,I : ;;A rat' inti);ntanc,~ e+f i'1'.CttA:YI'(' INN PRO('" SS TO AT LONV V(_1,11.THE
tlti'shiL l ,r.',a l .+lar ;slri~ t! , A;~~~„'14.i{ rllc~iKh'ti~ x~rtir. t i lIV,'ATiON OF TIIE; LOCATION Of:
( ant ' k(,Ji )AL.FS Atv` USE TAX PhRMCI''1IrE jf
W14F tisAS, the office, of the Comptroller of Public
cd. of 1"X-tuber. 1 X>.
counts Wlleccti atA remits « o' T"exas ritiet the local aptiola
salsa and wie to%in a cast effective, cfficletu and benefic"I
mimner thereby providing a great service to the citi" at d
®,A R;cSOLMION tc,wns af'rrxm,, and
,SL.I OWit'' ; AI3L7TF!t'.NAL CITY SALYS TAXF-S \VHLRF.AS, confusion regarding rip code boutuiaries, city
lO { TRF WD"ICTA;T ON NEEM. OF Cinf-S limit fxmndarim and city- i:(ent(ti;s sometimes esum the
U+,NXTR -S(?.(,)00 P UPUL.ADON (:omtstluller's Office to garlic Iocal sales and use tax funds to 7
\XF1'1j.;kRE',qy f Cl~~ it, t'fXwt w th q--rr N,CM popltl'rltllln +r rCdlt,+, clrv; 010 ' I
[1t !'-f~>t. ^...SR 11f Clikl.l]VCt'11y11( O1lC UN to l:~~lt`1;{
-•~14'C the Qt)rtix~l i' air, 8ftditudnAl ptlf (Iq-) 1;CIIt fiFlit~taK IX 'HEY I:AC J, Ll
7
i
i rt tl t'b,al M111tfrli t ..t4 lijrik~ .i L~jttxn ~ :1~ vpkich -,mie3 nd i,xc, ? : X f(i1 qik hive lv n rernll. ^lI
%X 'b i' LAS, many fTt~."f ky istinIc ~pfeSl 1 tYt infi~,tn(l Jlti 4l,' IT111 ITTr TO t!
[A#1 h6'4C used 6M ~ tAX to q-SAIEt Cti1t18r".• affmTed e.'AIfS ug 1nCil tf$ 0441 1, ~'tsP45 0I shit tl, lfYl1 `tY,ll3g7 9
t'i • , tS to t'tieir comtssunit ` -
- d
a
-
t t.''.'{fa tn-TC9tiis Wi& k" than ui:a }AV}A^ WHEREM, 1i
•I..`~ ,i„ rt(lti:MgltYtliiaar~t71L+'.r1~.att ~;41~7rtu5t.. ~11~! ueinEaellOttSC CarirYl o' ,.,evrnttriqusf A.,ttx:3:asta N +r,~~,y.1t45' ;d
N i'1"'(•i at'Trlm whlb ti-4'• tl`v> ; ~.t~.A•> p':it c.'nt And ('Rli:!'A r'Cot 71(r i i~l'iat5tt!$t? Apr clt~= who
~ F4
' . u
'f ~ 1 y1,r { rJ 'i
R "g~
' "~ti ► rte~i 04 9~stis V? wgd7 ejlr1;arc n,-T errtirtled nril"Ylrerlanddcit trtlinecliiw,lefvby actxtaNawirltrstuttotc r: ,
; th►w r astsa+t~eCM44 r..'sr. as trer+xrimi,bc: C6 the t,cwtrning t+crc§y; u:.tl
WI fk;31<*rM, the pt(ip('xw J ow.Vory owotiM I)ay a }iitrxion of
~e ~1r5 true pr,.",ffu att4 e .ssadrxr► dMridbecl in this 5f of lasr stdsry at auy or, afr,x 20 vice a service and 7Mi of
tt tq t~~tr t att$t~#~t tr,ixed rma tact last salary after 25 yvars of arrow, irprdlesa (If age at
c +lr 7rmar A holk Brest refirevWK; +Mcl
C°t iorxl a 4Verety*ftheCkyinwhich WHERFt.A,il, similar p rr(afon progranuw have resulted in a
a i fa'idtrated 10 roW*tidtocertify City contributim rata of 76% in Uakland, California and
# ey rte athttlettl l yritlal~t unnc9gie~ of 47,05% in, 6-A Angelen, Calfornia, and a similar p;cgtam
>T tR~i #iwtRcmoa tee wittilirtck}' • LX4 ChNUAr and has been dlwntinued iu Dallas, Texas, wtonew employees,
after incurring a 27.5% contribution rate; and
tion of a req i for municipal WHEREAS, the current trend in the United States is
'{rye diet t7ky Tttx C4;ortsrr Of OdWi Perron so towards longer periods oa service and greater age before
,JugVxwj dry Av City Coot-9. in the and use tax tetirernexrr rather than shorter periods; and
prtut'aa!*/ tf+r 9datecm9troilet, i3tri lar to that WHEREAS, the Texm Municpal League believes that all
reiqlfilinewwx Cftfsr'l:e W ,gkahnlie nevwerage C'nmmission emplo>rleat should be created equally and uniformly in pen-
WaVid 060=Or *r, Praeaelaillty of rates and use tail funds sion sya& r w and ether fringe benefits; and
being rAndktrtaii; WHOU:.AS, the TMRS Bortrd of Truataes is unanimously
NOW. TF;ZP.LK'yF.F, BE IT 9 ESOLVFI) by the ijnleptes cppctted to any such chanKe In the law governing the system;
arssemiAtrrx at this 74t% Ana ful inference of the Texas NO' Q, THEltU )RE, BE IT RESOLVED by the ddegvefs
Muniripoi t.7at the'lemm Meenicigal Ixvpe request msemMed at this 740.a Annt,al Conference of the Texas
Ow Cottttxn?lS, FtibhcAs countyroamend the sales and bAr,ricipalLrwnanews 'i?(9' o,s,-orlglyopposeaataylc.-islation
use trat permitting prkv_e&% to lrt::Jw.le a provisiou that the thrxtwould givcsperialtteauitentwithin theTMRStoanyof
Static CoMptxedlex be raga.~ited to Certify the 10C,01011e Of each the Defwrtments of a Member City; or that would remove
;sales and use titer perraittft o n a Iocal opeJnn basis, any author±ry from the governing hody of a Member City to
PASSED ANI-) APP OVt.D at Houston, Texas this I Ith deterrrmlas e[thet its contribution rate to the TMRS or the
day of Octobtr, 1984, participation of any of Its departments in the system; and
directs the Execatiw Director and his staff to take mtasures
to oppose the passage of the bill to be intrahtced on bt,half of
CLEAT.
AA REiSOTI TION PASSED AND APPROVED at Houston, Texas this I Ith
SUPPORTINC?..tUGHTS OF (XMS TO USTABLISH day of October, 1986.
POLIUE,S AND PIt071MRES FOR EMPi.OYE S
REGULAT 0 BY THE STATE CIV iL SERVICE ACT
WHEREAS, City maintained fire and police services are
vital to th,e wellbeing and safety of sash person in th2
communYry; and 0 RESOLUTION
WIal1RLAS, ;here servtrxa in each city are paid for by the PFRMIT711,10 MUNICIPALI•T1FS
citizetav of that articular city; In ASST JMF THE SFiRV[t 7i AREA OF;
NOW,TIU.-JIT-TORE, BF I I' RESOLVED Irv the delegates R1 MAi. 1i/rl'[l li t Y)Ri'I MA"I 1( Usti
as~cntl_,Ie(.l at tliiv '14th Am,tuil ConfVECTrcr Of the 'Icxus
tFll[r_iUill d w (lty ( n,n)(tl „ i:r<,rlt:ut, f i-, , n.,.
Municipal l.eexiw that till l its Mttnif tip 1 I iyur adhere cntly ells q;etl in the:inr wxati(.n rfunirruy or +ttuu'~
tut, ,trp)xrrt and cn(iorse the rights of cstivs to cstablisii their Ann. (;iv. St. Art. 9"10a f Kfini,, 1noc.cis it n, A1, r); and
nwuy)ol4.ie an(Ipr(x'cdurc<.s'ara}lenat~h)ycer,(lireu,en an.~ WHEIU:'A5, tcrrito rr,, wric:i(:d by , ('ity r)i kli;ur Is
poikc) (urrerttly rcrulatcr.I by (he 2itaU Civil Se.vice Act &Lhin the se:wi(e im i +,i n rural ~,v,,tcr dktrYcr r;hu b Ito
PAssj-D AND nirPROVED at Flouston, Texas This 1 I tit vide-s ,ht' art;( wide wat~ I •e•rvitc nni d
y. .n
clay of October, 1986. WFIf_Ri ,v.'i, the City , r1 l srrkhmt, Texas, IS! -mired by Tilt'
Municipal Aw xation X t to extend sewage trrvlul ro tyre
newly annmed errs,; and
NA RBOI.UTION WHEREAS, sewage rrn(,s are commonly tied to tvr -tr con-
OPYC)S1NG PROPt)SED (RANGES IN sumption and thus the City of LA)ckhatt has no i)ractical
THE TEXAS MUNICIPAL RETIREMENT SYS-niM method of setting sewage rates for newly annexed tertitr;ry
PROVIDING SPECIAL. BENEFITS FOR served by tural water distrirt5; and
FIRFFIGHTFR~ AND POLICE OFFICERS WHEREAS, the smaller water lines ordinarily used by rut al
WHEREAS, the Combined Law Enforcement Association water corporations for water serviceare nett adey rate for fire
of Texas ha,, rna,ie it known thrxt it will cause to be intro- protection within uthan areas;
daad in the next regular wsnicntofthe State Legislature a bill NOW, THEREFORE, BE IT RESOLVED by thou delegates
to crr:are a separate cateKcry in the Texas Municipal Retire- assembled at this 74th Animal Confer:nce of the 'i exas
mew Systern h.rr Pekes and Fi;'e Depattnaents that voce to Municipal League that the'Texas Municipal l.r;wtrc support
pottit it mce7 fir. it; and municipal authority to assume the service area of niral water
WIIfil7.!%.4 S, rhrCaty C .4111016 Will havrnovolceorvote in corporations once that wrvice area has bscn annexed by a
outkie) i:att:-la a drreennin:erion; an(1 city under the Municipal Annexation Act.
WiIFAT;i S, she m<m} ci. w,,odd contribute 8% of their PASSED AND APPROVED at i-tutr,,ton,'T.:Ya:, thin I Itit
,ealr>.ry ro (h» fmi,i l:)ti; d,r :-iry's c.(:ntribution would be, day of October, 1986.
23 . N0112M&T 19%
I
■A RESOLUITION GA RESOLUTION
PERMITTING MUNICIPALITIES TO ASSUME THE SUPPORTING A CHANCE IN UNFMPLOYMEW
SERVICE ARL'AS OF ELECTRICAL COOPS COMPENSATION CHAROE-BACK TO CITIES
WHEREAS, the City of Lockhart, 'T'exas, is presently WHEREAS, the State taw now provides that a city employer
enpageu in the annexation of territory under Vernon's Ann. may be charged for unemployment benefits of a former
Civ. St. Art. 970a (Municipal Annotrition Act); and employee; and
WHEREAS, the City of Lockhart provides electric utility WHEREAS, this employee may have quit or been termi-
service to citizens within its corporate boundaries in the nated for cause by either of two employers, the unemploy-
ordinary course of business; and ment benefits are still payable by public and private
WHEREAS, the service, areas of rural electrical co-ops are employers.
often Incorporated into municipalities creating unnecessary NOW, THEREFORE, BE IT RESOLVED by the delegates
complication in servicing those area; and assembled at this 74th Annual Conference of the Texas
WHEREAS, this problem could be easily solved by the Municipal League that the Texas Municipal League support a
Texas Legislature permitting municipalities to assume the change in the State Unemployment Compensation Laws as
service areas of electrical co-ops once those service areas have follows;
been annexed by a municipal cor%wation; Remove governmental entities from the required
NOW, THEREFORE, BE IT RESOLVED by the delegates payment oR unemployment compensaton insur-
assembled at this 74th Annual Conference of the Texas ance benefits for any employee who was termi•
Municipal League that the Texas Municipal League propose nated for cause by a city.
legislation that would permit municipalities to assume the 2) Remove local governments from the payment of
service areas of electrical co-ops upon annexation of those unemployment compensation insurance kwnefits
service areas by a municipal corporations, to former employees who voluntarily left the
PASSED AND APPROVED at Houston, Texas this l I tb employment of the city.
day of October, 1966. PASSED AND APPROVED at Houston, Texas this 11th
day of October, 1986.
■ A RESOLUTION _ ■ A RESOLUTION
PERMITTING THE EVIDENTIARY ADMISofBiL Y ENDORSING AN AVIATION FUELS TAX
OF NEW TECHNOLOGIES, SUCH AS THE "ORBIS WHEREAS, theTexas Municipal League and itsaffibate, the
SYSTEM," INTO JUDICIAL AND ADMINISTRATIVE Association of Texas Airport Executives, support the growth
PROCEEDINGS IN THE STATE OF TEXAS and development of aviation and the airport system in Texas;
WHEREAS, the Texas Municipal League has traditionally and
supported safety education and vehicular regulation related WHEREAS, to continue this development a secure source
to traffic safety and roadway triage; and of state funding is necessary; and
WHEREAS, there isa great public concern for driver educa- WHEREAS, the users of aviation in Texas should pay for
tion, driver training and licensing, vehicular safety, roadway iirpe,., development;
usage, traffic congestion, and the enforcernentoftvafficlaws; NOW, Ti ILPFFORE,BE IT RESOLVED by the delegates
Mud as,,vmbled at this 74th Annual Conference of the Texas
WfiEREAS, there is a need for municipal ndminintrautrs to Municipal League t},ai the Texas Municipal Lcai;uc support
more cost effectively utilize their fiscal and limited law passage of all Act in the State i_,aishture authorising an
enforcement personnel resources in traffic control, conges- aviation fuels tax ofappmximvtely $.02 cents;wr y;ellon nit
tion and enforcement; and all aviation fuel delivered into ;ell civil airciatt in Tusks.
WHEREAS, there have ixen many new technological 131- IT FURT11FR RESOLVED that this tax should gener-
develoi rents in vehicular related enforcement and.safety ally be dist.ibutcd as ti)Ilowc: 50';1, to she Texas Aeronautics
devices which can aid law enforcement personnel in traffic Commission forairport planning, developmentand improve-
enforcement, vehicular control and movement, and safety went; 2516 to the School Fund for Scienc_ and Iviath Pro-
programs such as the "a-his System"; and grams utilizing aviation and space light th:mcs, and 25% to
NX/HEREAS, thepresent traffic laws of the State of Texas do the General Revenue Fu..u.
not encompass the utilization of these new technological PASSED AND APPROVED at Houston, Texas this 1 Ith
devices in judicial proceedings or administrative driver day of October, 1986,
license hearings, suspensions, or revocations authorized by
law; NOW, THEREFORE, BE IT RESOLVED by the delegates
assembled at this 74th Annual Conference of the Texas ■ A RESOL.UTEON
Municifal League that the Texas Municipal League support SUPPORTING CONTINUATION OF
legislation in the 70th Session of the Texas Legislature that APPROVED STATE HIGHWAY FUNDING I,I-VEL
would aniend the Texas Motor Vehicle Laws to permit the WHEREAS, the Texas Legislature acted in a Special Session
evidentiary admissibility of new technologies, such as the in the aummer-of 1984 to address a crisis caused by the
"Orbis System", into judicial and administrative proceedings deterioration of the 72,000 mile state highway system; and
In the State of Texas. WHEREAS, years of neglect resulted in Texas having more
PASSED AND APPROVED at Houston, Texas this 11th obsolete and substandard roads and bridges than any other
day of October, 1986. state; and
Texas Town er City a 24
WHEREAS, lack of state highway funding made it impmei- 1) Removes tMnsporration trust funds from the
bee for the State Department of Highways and Public Trans- Unified Federal Budget, allowing revenues from
pottation to adequately maintain and expand roads to serve user fees to flow unimpeded to provide improve-
Incressing numbers of vehicles; and ments In transportation facilities.
WHEREAS, the state's deteriorating highway network Z) Authorizes the Secretary of Transportation to ap-
threatened the safety, economic health, and quality of life of prove the Interstate Cost Fstimateadminiatratively•
every Texan; and 3) Continues the present 85 percent minimum alloca-
WHEREAS, the'rex,s Legislature acted with courage and tion.
wisdom to address the highway funding crisis by increasing 4) Continues to dedicate all fuel tax revenues to the
fees and taxes paid by Texas highway users; and Highway Trust Fund.
WHEREAS, all of the Increase In start highway fwids came 5; Continues general revenue appropriation for tran-
from increases in the state motor fuel tax, vehicle registration sit capital outlays.
fees, and vehicle sales tax; and PASSED AND APPROVED at Houston, Texas this 1 Ith
WHEREAS, Texas highway users supported these increases day of October, 1986,
in fees and taxes with the undetstandiny that revenue would
be used to maintain and improve their roads; and
WHEREAS, the diversion of revenues from fees and taxes
paid by highway users from the State Highway Fund to O A RESOLUTION
general revenues is a breach of faith; and SUPPORTING AN AMENDMENT TO THE
WHEREAS, Texas voters have consistently supported the TEXAS CONSTITUTION
roncept that those who use the highways should pay for TO PERMIT RECEIPT OF SALARY PROVIDED FOR
them; SERVICE ON LOCAL GOVERNING BODIES BY
NOW, II:EREFORE, BE IT RESOLVED by the delegates STATE EMPLOYEES OR OTHERS WHO RECEIVE
assembled at this 74th Annual Conference of the Texas ALL OR PART OF THEIR COMPENSATION FROM
Municipal League that the Texas Municipal League urge., STATE FUNDS
I ) That members of the Texas Senate and House of WHEREAS, Article XVI, Section 40, of theTexas C:onstitu-
RepreRRntatives honor the commitment made in rion prohibits state erapioyees or other persons receiving all
the 1984 Special Session of the Legislature to or ;.art of their compensation from funds of the State from
refresh and improve the state's highways. receiving a salary provided for service as a member of the
7) Tltatessentialhighway Improvement funds not be governing bodies of school districts, cities, towns or other
diverted to other uses. local governmental districts; and
3) That projects to prevent traffic accidents, reduce WHEREAS, this constitutes inequitable and unfair trear-
congestion, and improve mobility of all Texans be ment of such persons who are nevertheless tawfully permit-
completed without delay, ted to serve as mcmbets of such local governing NAILS;
PASSED AND APPROVED at Houston, Texas this I Itit NOW, THEREFORE, BE IT RESOLVED by the delegates
day of October, 1986, assembled at this 74th Annual Conference of the Texas
Municipal League that the Texas Municipal League endorses
- - the passage of legislation submitting for approval by the
■A RESOLUTION qualified voters of the state a proposed constitutional
SUPPORTING CON'T'INUATION OF amendment repealing the aforesaid prohibition, and dirccrs
('URRE'N'T' LEVELS OF FET)ERAL FUNDING the Fxecutive I)ire ctor and his staff to tuke rne;uures to ass'sr
W LREAS, Congress increased tlu federal fuel tax to 94 a in its ;'assage, and urge 1, all member cities 311~11vidoalk to
gallon in the Surface Transportation Act of 1982; and contact their elected state officials to inform rhein of the
WHERF.AS,aitameridmenttothatIegislationcixmsoredby importance of this les4l Fhiion to cities, Wd other local
Senator Lloyd Ikntwn provided equity to each state by governmrntaientitir!;(iftfte',r,,tc,:rntiitosohcittheir su{••port
guaranteetngareturnofatleast85percenroffederal luglnvav for itspnssage.
user taxes collected in that state; and PASSED AND AI'PRC)Vlil) nt iloitston, Iexas this I Ith
WHEREAS, prior to the enactment of the Bentsen amend- day of October, 1986,
ment, Texas wns receiving less than 7 5~ for each dollar paid
into the Highway Trust Fund; and
WHEREAS, the inereara in the fed-ml fuel tax and adoption ■ A RI:SOLU'110N
of the 85 percent provision substantially increased the. fed- SUPPORTING AN AMENDMENT TO THE ELECTION
eral highway funds received by Texas; and CODE TO PROVIDE AN ALTERNATE TIME FOR
WHEREAS, the Increased federal highway funds, together HOLDING AN ELECTION W14EN THE PRES'AUBED
with additional state funds provided by the Legislature, are ELECTION DATE FALLS ON A HOLIDAY
being used in a long overdue program to rehabilitate, WHEREAS, when astateornational holiday coincideswith
improve, Pnd expand the 72,000 mile i exas highway system; one of the uniform election dates prescribed by the Texas
and Election Code, the particpation of voters in the election is
WHEREAS, Congress isconsldering legislation to reautho- thereby diminished; and
rite federal highway and translz programs; WHEREAS, it is in the public: into csr to accotnmcxlate and
NOW, THEREFORE, BE IT RESOLVED by the delegates encourage maximum voter participation in elections by
assembled at this 74th Annua Conference of the Texas avoiding conflict in election dates with state and national
Municipal League that the Texas Municipal League urge the halt ant's, and when a prescribed election dace conflicts with a
me•nbers of the Texas Congressional Delegation to support state or rati;:nal holiday the election date should be held on
lel,4,slation which, an alternate date;
2 5 ■ IYwembtr 19d6
d w aaaLe~gutes~otsthc'~'~w
~4t4e.°rnt'9let~ dr w l °•'}i AnntLal .<?rt$e C of the Tom. to a msb~W max t9f atkkkmW
~ ' •
Muruopd (.eacuctlurt tLe T".as'~4urr yt~~'71i
{ad Lt~ytteuxsdt~t,es a such F W%4& t~.+tT • 00 t9KGjW
t of lcvslrartidrrtxeconrtls"F* Phe afearra&MUt64d. matt wwardsi*hat lev* Participed"M
'
direm the FXPm Utive? Cr W A* aittlf eo U&C aftowo PAPA AW APPEiLC M ac F#awj= , '3ft* t kls, P Tth -Vt
ro stoup u, us passge, aril urgee a.H ~msba pulps individ 4ay Co C,ct mbar, 19FA
ally to contact tlx'r eicaod stag ofd to ia&sta the= of
the great k"patunm ofd* llookcion to dda in tiro sgtlltf , ~.....r. ~ -
srid to atkdt dust heart in pirmb* it. a INA M%XUT i:.
PASSED AND APMYM' at tirnsrowi. Texas this 11th WMEAS. Ott WW tow tt$iels
day of Ckxc>hw. 1996
cis of.ths Stone of 1CM PA*~ tie awdit4ttta aanegedr ,
showed to be kxnttd tritl3irt a ter WkN%w`trrfa~►t11fr't#ir r~
zotiag Im fmdmrt, *1:
BA RFSOLILMOV Vr/HF.lMAS, in r oftWfrfdbar; is as
SU IPUR' 17W THE TEXAS s~ latloris ragufre thwt a aaidc~taft~t , •
ISCONGMW DEVELOPMFNT COMMISSION such lid usr s be ptw i"tc► 311 XM I bye6 j► t
RP-SOLVED, thar the Texas A4 addrxil l e oic suppcx" by vobifiin a notice #z,% rAnvu* per oaf aaMta~~ y t
lt.Oslinioii which will fiord the T"m Ecoswirnic ~vrlop. in ttucountp of tfw FxcVKVed lr n ~ -
ment C omnllssion in a nasrtncr adequstr. to 61ti!tion cvr a par \W ERFAS, it is tbi. LOwin csc'i Tcx-wK k n4.-4%a L *4M
with the ecorv)mlc deve-lo twnent provama of tAbet major dial' rcuch notice rcq!uremr~tns arc strxi q are to prtyarr!y
industrial states. appciFe the teridenta tut dw city cai Tjw* the, Fv(VKx>ed
PASSIM AND AlYROVED at. Hountrm,',Cexas this 1 Ith titxatiOn 4 the. )rate fa<ilitY within the t 0"Imbe"of WWI)
d21; of Wober, 1.986, (Ity, wMd
Wl WR.FAS, a ix,xekhxra s;•t,. 7e(It a,Snttssr,-nay pro: fvk l:ng
to c to or )(x; m but; a fic is peps t9 rsrgtclt>A1 to ptU;1<te a_
■ A RESOLU1110N written ncMict to thr dty in arM& a f dhty is to be
SUPK)RTING AMEM)MPNTS TO 1UE TEXAS locr u:d would rovide en acukiotmd a fectivt n•lc.+ns 4
MUNICIPAL RM7REMFM' SYS:TFk( TO ALLOW notica
FSTABLISHMEM OF ADD11 ZONAL NOW, THERE POP.£, BE TI' RS9M VFD by the dew
CONTR1Bt1 MN RATFS FOR MUNICIPALITIES wwanbied at this 74th AntaW Cotjierr t - of the `T'r,)aw .
VMEREAS, some Texas arias currently paitidpate in the lulu nicurml League that theTexaa Municips! x-agt;e requeaM
Texas Munictpal Retirement System at a nice of 5% for due Legislature of the State of Texas to mmine and reeviov*
employee contribution and 10% for the city';a contribution the notice :equiren:ents which are, presendy roquirod prior
m the employer; and to a decision to either locate or operate a Scats fsciFity within
WkIERFAS, _hose 4drica may wish to incremw the rates of th ecityifmitaofacity and amend suchrellpLA t:hsroptovide
,ontributlon to 7% for t~mpioyees and 14% for the city, but dakt an additional notice, in writing, be provided to thil city
such an enhanced contrilwtion by the city would he linen, governrzntt of the city in which s,,ick faeilitte s are proposed
Tally proldliitive for the city; to ixx lot Ated or ol,arated. f
"JO V1, I i llslZF,l'Oiti?, Jill' i'T ldi~'iOt.VAI )1ty th;r cl; lrE(errti P/k )NP 7 ANN AT1MOVFD ur 11cncstott, Tc:rtx this I .Ith
rsi~tttitl,Li ;a thi; i'lth Amutal ('~ite(crtrnc<: nl rltL Ic,¢ar; i.iyofl),col=t, 1SIf~G.
Mtmiryrtl Jf!,,xtiv rhat ilic.I exsr;+ Muni6lial I A,igtue supix:rtn
A tow
u 'l
10"' ANNIVERSARY t~ oil rxshtrwa, mute es.
T
A
KE A DAY OFF, . . ffl"rr'ts'iaaa1C
[Jdr* lots (A toAcb, but pcm
(torn smoking, Join the 1Qth Annts,:ti Grant up oofree & atop ,
Anwr c an Srrtokeout on Thursday, Novembor 20, Teri evwl" you're quitting
MlUbns of Amertwrvej cow fl)e oruntiy will r«mecloy-
ry)c*e a ftmh start (rid try not to smoke for 24 M*n tnt, Lrge to smoke hns, !
hours. How about you? Or, If you don't smoke, nor fo take ° se `axxis,~' s11ti 4
' tx>i elease tr
adcrt a smoker tnr f t+e (day x d Vom!se to help
that frlefKI get thro.sgh the 24 hours Excxcise to relieve the *r&A).
withod a CigMett9 I Try hw3').)tat'Idy system," corKA
awe, ark o Mend to q# too.
ieerts'r'na,:IiAT l`i'~Y • 26 .
i
" 17 "2?+ RMTIN.,,~R.` " 1' 'T r s t+,'£x °T i i •
0923L
N0.
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDIN41 A CONTRACT
FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES;
PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City has solicitopd, received and tabulated
competitive bids for the purchase of necessary materials, equip-
ment, supplies or services in accordance with the procedures of
state law and City ordinances; and
WHEREAS, the City Manager or a designated employee has
reviewed and recommended that the herein described bids are the
lowest responsible bids for the materials, equipment, supplies
or services as shown in the "Bid Proposals" submitted therefor;
and
WHEREAS, the City Council has go in the Citv Budget
for the appropriation of funds to be used for the purchase of
the materials, equipment, supplies or services approved and
accepted herein; and
WHEREAS, Section 2.36 (f) of the Code of Ordinances requires
that the City Council approve all expeneitures of more than
$10,000; and
WHEREAS, Section 2.09 of the City Charter requires that
every act of the Council providing for the expenditure of fundo,
or for the contracting of indebtedness shall be by ordinance;
NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I.
That the numbered items in the following numbered bids for
materials, equipment, supplies, or services, shown in the "Bid
Proposals" attached hereto, are hereby accepted and approved as
being the lowest responsible bids for such items:
HID ITEM
NUMBER _ NO, VENDOR AMOUNT
9s - toIcaTtemS, s 17„gsa_nn
TEs 1946A _nn
COLOKUL MOTORS 7_aoe_nn
SECTION II.
That by the acceptance and approval of the above numbered
items of the subsitted bids, the city accepts the offer of the
persons submitting the bids for such items and agrees to
' qi 4
t
s yi.:: . .r , S° { c:...; s y jP; `•i ` _ .fiT;+( a ?.~+pq.. .SYY'_ Bi757'R4 +e-M +
d r ti
purchase the materials, equipment, supplies or services in
accordance with the terms, specifications, standards quantities
and for the specified sums contained in the Bid Invitations, Bid
Proposals, and related documents.
SECTION il_i.
That should the City and persons submitting approved j
accepted items and of the submitted bids wish to enter into a
formal written agreement as a result of the acceptance,
approval, and awarding of the bids, the City Manager or his
designated representative is hereby authorised to execute the
written contract which shall be attached hereto; provided that
the written contract is in accordance with the terms, conditions,
specifications, standards, quantities and specified sums
contained in the Bid Proposal and related bid documents herein
approved and accepted.
SECTION IV.
That by the acceptance and approval of the above numbered
items of the submitted bids the City Council hereby authorizes
the expenditure of funds therefor in the amount and in
accordance with the approved bids or pursuant to a written
contract made pursuant thereto as authorized herein.
SECTION V.
That this urdinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this 16 day of December , 1986.
RAY
MAYOR
CITY OF DENTON, TEXAS
ATTEST:
CITY OF DENTON,gTEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAM DRAYOVITCHO CITY ATTORNEY
CITY OF DENTON, TEXAS
BY.,
PAGE TWO
ui~%'' aa..~m.a _ _ _ .]i-~..._ .rN 1YA.iii(L YISI 1.[YX.]~l~dl .l~•~I~ fiYff[7`YYP~~.X;Iu.~(i,.~..
~,$gny*i .r,., ° ° `.-F"` ap r 'ria'r:.anr~ r-z . [ --*'c .f5ft _ 'Civ~~.:
DATE: Decaarbar 16. 1906
CI-M COWL NEW
TO:. Mayor and Members of the City•Council
F110M: Lloyd V. Harrell, City Manager
SU16MCT: EXTENSION OF 6104 9484 - MOBILE RADIOS
REC~TIOM: We recommend this bid extension b2 accepted and that the
bid for 12 pc of Item 1 - police radios be awarded to Motorola Communications
in the amount of $1,449.00 ea plus $476.00 for police related crystals.
T: This bid was awarded to Motorola Communications on July 16, 1985
for an annual supply of radio equipment. Motorola has agreed to extend these
bid prices through December 31, 1986. The 12 radios wo wish to purchase are
for the fleet additions approved by Council as a portion of the "Assigned
Officer Program". Motorola was the only bidder when this bid was originally
let and we have had no interest in supplying this type of radio from other
vendors. We also have had no indication of a price reduction, and tierefore
feel this is the best buy for the City of Denton.
Tabulation sheet
Motorola letter dated 11/17/86
~'1E,~6ANi ffLA. tTi~TS 99 0-0-M AFFECTED;
Police Departm w-
,F"=- UM:
These radios will be funded as a portion of a third party
lease purchase agreement 91Di1 9685.
Respectfully submitted:
'r
Cit Manager
Prepared by:
'Folit or. T~M: AssistrntPurchasing Agent '
Approved:
U, CiP+;• !
4
BID 9484 _
BID TITLE MOIL RADIOS - MOTOROLA
OPENED July 9, 1985 2 P.m.
ACCOUNT
N VE d_ V VSN VL+N R VENDOR VENDOR VENDOR~
1 4 i 4 .00
2 4 Low Band 1,420.30 2 10 Low Band DPL 1 558.90
3 2 Portable 1019.62
livery
60-70
r{7 F r, 11. rr fit` ei :.`15~,{~"p N3~n~~ .ti CZ~'Y a.ii Rar'io 1'yri~W~~.1u4
^v?`.^i
November 17, 1986
Mr. Tom D. Shaw
Purchasing Department
City of Denton
901-B Texas Street
Denton, Texas 76201
Dear Mr. Shaw:
In reference to our aonveroations on Thursday, November 6, 19860 we
discussed estend'ing price validity on B$d Nus'er ,`484 dated July 9, 1985.
Wousion of dascribed equipment below will be effective until Docombsr 31,
1986.
a3 nt List
A) T83JJA390C C Mobile 11,449.00
Crystals 76..0.0
VHF High Band Mobile Total Cost $1,o925.00
B) T81JZA290C t Mobile $1,420.30 ,
Crystals
Low Band Mobile Totmi Coat i~
C) W JJA8900 IC Mobile $1058.90
U w Band DPL Capability Crystals 190.00
Total Cost $19748,90
If you have any questions as to the following equipment, cost or options
available for the above mobile communications products, please do not hesitate
to call me.
Sincerely yours,
CV M 0 T 0 a 0 L A
pr Communicattons aad Xlectronias, Ina.
CO
~r~
1 ame4 E. ![autos, Aaoonat Bssantiw
Q Qbweruvmt Markets Division
JU: gjd
~ ~~<tb ~',b p,5,••5`Y, i .F e: e. i„ y 'pp i iyi:~ K
u'.
l`tCIII O
TO:: Mayor and MsWm rs of the City Council
FIe0lla Lloyd V. Harrell, City Manager
ACT: BID# 9686 • RIDING HOMERS
R ~1„TIQ : We rer,on nd this bid be awarded to the low bidder for each
item meeting specifications. Item 1 , two mowers, to raoldthwaites #1 at
$69975.00 each for a total purchase of $13,950.00. Item 2, one mower, to
Colonial Motors at $7,690.00. Total bid award of $21,640.00.
mom: This bid was sent to several local and other area suppliers.
We reetived seven bids and we are recommending the tow bid meeting specifications
for each itew. The mowers are for Water Production, Electric Production
and the 1r.:stawater Treatment Plant. All are budgeted items.
Tabulation Sheet
.M!, MOs OR GROUPS AFFECTEO:
VISCA1r WACT: There is no additional impact on the General Fund.
Respectful submitted:
Ie
Lloyd V. Harrell
City Manager
Prepared by:
A
: n J. Marshall, C.P.M.
FUN: Purchasing Agent
Approved:
Mpt+,aMll, CAM.
I I 1 I I I ! {
BIA 1 968b 1 COLOMIAL IBOLDTHNAITES I T. M, W. 1 0. L, IQOLDTNMAITES 1 FM i NAt11N I ;
SID TITLE R1D1N8 MOIIERB I MOTORS I 1 2 1 EQUIFNENT I PETERSOW I 1 1 1 SEASONS 1019TAINTTTNS I I
WENFO 1219/86 2111 P.M. I Co. I I t I I I 1 I
ACCOUM1l 621-181-1461-9104 1 1 I 1 1 1 I 1 I
621-182-1471-9104 1 1 1 1 1 1 1 I !
I------------- I------------- I------------- I---------- I------------- I------------- I---- I-------------I
0 1 QTY I ITEM DESCRIPTION I VENDOR I VENDOR I VENDOR I VENOM I VENDOR I VENDOR I VENDOR I VENDOR
I
----I- 1---------- I---------------I-------------I----------_--I-------------I-------------I-------------I-------------I------------- 1-------------{
I I 1 I I I 1 I 1 r I
1, 1 2 IROTARY RIDING NOW 61" 1 79441,1! 1 9 '93.11 1 719H.10 1 91815.0 1 61975.11 1 7,149.11 1 11155.00 1 I
I 1 { ! I 1 1 I 1 1 I
1 IROTARY PIDIN8 MOTOR 72" 1 71691.11 1 1293041.1/ 1 9041/.04 1 NA 1 8,485. M 1 81582.10 1 799/1.M I 1
1 I 1 I I i I 1 r I I
I I FOB DEMON I YES I YES I YES I YES I YES I YES I YES 1 I
1 1 I I ( I I ! I
I I I 1 1 I I 1 ! I t
1 I MANFACTUAER I JACOISFN 1 1 DEERE 1 KUIOTA I TORO I DEERE I HMW I I
1 I I I 1 1 I I I I
l I ! I I I ! I { I 1
I 1 I ! I 1 I ! 1 I I
I 1 I 1 I I I I I I I
t. ,Y. '~skill .2.1~'7 SiL SII.. ` :;Lf n~ .rqrib., 'ru it i, r`1° .Y ~'se •Kk .•i''fi •';q~'l 't ft',~.t'
`o-S 4 c e , ~''7^+S~.Ri ~6"'...T"~}YT'~'~m3 m'0. q ss~-i Ni:~t . ~,a°~,,., ~ F ••..3' r Y s° -.~t';a tas` "'.+i''TC
7 0923L
NO.
AN ORDINAMCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE
AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVBNENTS; PROVIDING
FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN
EFFECTIVE DATE.
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
WHEREASs 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 therefore; and
WHEREAS, Section 2.36 (f) of the Code of Ordinances requires
that the City Council approve all expenditures of more than
$10,000; and
WHEREAS, Section 2.09 of. the City Charter requires that
every act of 4.he Council providing for the expenditure of funds
or foi• the Lontracting of indebtedness shall be by ordinance;
,NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I.
That the following competitive bids for the construction of
public works or improvements, as described in the "Bid Invita-
tions", "Bid Proposals" or plans and specifications attached
hereto are hereby accepted and approved as being the lowest
responsible bids:
BID NUMBER CONTRACTOR AMOUNT
96% SECURITY PACIFIC CAPITAL MARKETS 564.107.86 9688 R. L. _ R08ERTS CONSTRUCTION CO. INC. 1990112,
_ 009E PAINTING
SECTION II.
That the acceptance and approval of the above competitive
bids shall not constitute a contract between the City and the
person submittint the bid for construction of such public works
or improvements orein 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
~~n>,•.,h ?'r{~i~ in •.n' ~ 7. i' 'r` "i f'„- 'n : .ti.. .i,'i F r. r ~ [i_i,.
N
. mf f i~K*t'- °C_+rwn4°yT'. ,n_..4"s. ~ a' t', s~:. }`.v 'i ..i °'~-~y~Y'.r2'>#~Y Y.r i-n ,
furnishing of performance and payment bonds, after notification
of the award of the bid.
SECTION I:l.
That 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 bias a...cepted and approved herein, provided that such
contracts are nude 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 IV.
That apon 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 V.
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the 1_ jay of nocomhpr , 1986.
CITY OF DENTON, TEXAS
ATTEST:
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DLNTON, TEXAS
BY.
PAGE Two
A^~gt'4`y~,~+s-m`,g~q~...-"^`R~_ -v:y^TIR.C"'> ~yra~t *i raSm~~-~+n-^ +n~.n°f-r++n~T+n^we. m;?s.'A~'.,..-.y •T'~!?q~lTy: ~
DATE: Oecoomr 16, 1986
CITY =CIL
TOs Mayor and Moberg of the City'Council
FWM: Lloyd V. Harrell, City Manager
S1+i8NL`T: 910# 9685 - LEASE/P ROIA5E F10KIp6
19MUM , we recommend this bid be awarded to the lowest bidder, Security
Pacific Capita? Markets with an annual percentage rate of 6.740% on approxi-
1
mate 634 0^l7.
04. Total Interest for 36 months ;64,107.88.
;EMT:
This bid is for the third party lease/purchase agr"wnt
to fund motor pool equipaent consisting of a roll-off refuse truck, inter
state mower, sludge injection tractor, self loading scraper a!id 12 police
sedans. Estimated cost !634,000.00, the total interest charged at 6.140%
will be 5640107.88.
Tabulation sheet
PRWiRM s DEPARTNEW 00 OM MICTEO;
Finance and Motor Pool
FTC' = 1986/87 Budget Funds for Motor Pool replaceMents and major
fleet additions.
Respe ully submitted:
v
Ll V, Harrell
City Manager
P red by:
Now Tom 0. Shaw, C.P.M.
Title: Assistant Purchasing Agent
AWroved:
J, Marshall, C.P.M.
o*
i
i
i
{
I I I I I I }
BIO f 4685 f CHRYSLER I FIRST I SECURITY I I I i}
F!'D TITLE !EASE/PURCHASE FINANCING I CAPITAL I CONTINE41AL I PACIFIC I I I
OPENED 1219186 2111 P.M. I FINANCE I FINANCE I CAP11AL I I I
ACCODNTI I CORP I CWP I MARKET$ I I I ~
I I I I I 1
.--------I------_..-----_....--_-I- ----------I---------•---I-------------I
8 1 OTY I ITEM DESCRIPTION I VENDOR I VENDOR I VEWOR I VENDOR I VENDOR
----I_._.._---I-------------------------I I--------°°- I------------- I------------- I ------------I
I I 1 t I I I I
1. 1 i I WU4L PEACENT461 RATE 1 7.11 1 6.157 1 6.74 1 1 I
I I I I 1 r I f
I I I s I I I I
I I TOTAL INTEREST COST 1 71,712.9C 1 64,157.56 1 64,111.61 1 1 t
i I I I 1 I i t
I I I I ! 1 I I
I I I 1 1 r
I 1 I I I I ~ I `
1 f I I 1 s 1 ,
i1
f'
i
t
~`Fh `S ~l~~°cf~3(t, M1hi!': 'S ?.lX ~t ~~,r ➢1"~l~ ~l'i ,w 4 K]D' r' : n ! i i
77
GATE: December 16, 1986
TO:. Mayor and Members of the City Council
FW Ms Lloyd V. Harrell, City Manager
SWJECT: BID# 9688 Hickory and Welch Streets Paving and QrainW
1 We recommend this bid be awarded to the low bidder, R.L.Roberts
ons ruc on o. of Sanger, texas for the the total amunt of ;189,112.50.
Y: This bid was secured at this time so the Contractor as required
wi O be able to complete this project within the time that North 'texas State
University is out for the holidays and semester break. The bid for Welch
Street is $66,069.00 with 28 calendar days and Hickory Street $1240043,50
in 30 work days for completion. We have two items in the complete bid that
will be determined if the need arise for rock excavation and hydromulch.
Background Sheet
Memo from Jerry Clark-Eigineering
P1 DEPARTMENTS oft -own N EM;
Street Bond funds - there is no additional impact on the
Get,_. dl Fund.
Rtspectfu ly submitted:
.Harrel
L o
y4gl
City Manager
Prepared by:
tom: hn J . Marshall, .P.M.
T-itle: Purchasing Agent
Approved:
4. Marsholl, C.P.M.
,.:;v f s. 1..u
i
I
3
I { ~ I I 1 }
9688 1 AP AC MITER CREEX 1 AUSTIN I CALVERT 1 11,1., 1 {
HICRORYWELCH PAVING A DRI TEXAS ICOKBTRUCTION I ROAD I PAVING I R09EATS I I
1219/66 2111 P.M. I INC. I INC. I CO. I CO. }CONATRUCTION I I
434••112-5085-9115 I I I I I I I
I I I I I I }
- - 1..-.----------I------------- I------------- I------------- I------------- t-------------I
ITEM DESCRIPTION I VWOR I VEMOOR I VENDOR I VENDOR I 9ENDOR I VENDOR i
I------------- I------------- I-------- {-------------I-------------I
1 I I I I }
i1ELCH 91. 26 SAYS 1 75,489, 04 1 63,497, N f 749J39.99 1 21000.1116 1 0,164,01 1 1
i I ~ I 1 I I
N. HICKORY 91. TI DAYS t 138,871.92 1 125,964.11 1 131,684.71 1 131,111.04 1 124,043.50 t
i i I 1 ! I } ~
i I I t I I } j
TOTAL PROJECT 1 214,365.92 I 189,461, N 1 2115,124,69 1 195,11l.M 1 189,112.51 1 I
I i I } I I ~
DID Bp11D I YES I YES I YES I YES I YES I i
! I I I I I 1
1
i
1
R
f
r fyrG 3r j) s Vt6e Uri,
oil,
CM Of MTON ~ 216 E. McKinney ~ Denton, r xaa 70201
MEMORANDUM
DATE; December 10, 1986
TO: John Marshall, Purchasing Agent
FROM: Jerry Clark, City Engineer
SUBJECT: Bid #9688, Welch 8 Hickory Paving and Drainage
We have reviewed the bids submitted byy R. L. Roberts
Constri,tction on the project. Due to the Critical coordina*+.on
required on the two projects, they should be awarded together
unless major crest savings would result. Bitter Creek was only
$1,500 lower on Welch which is not a significant amount to put
two contractors into the same area. Conflicts with
barricading, road closures, and other critical areas more than
offset that amount.
Our estimate was lower than the bid by about $30,000. The
restrictions on time for Welch and constant access to
businesses on Hickory apparently will cost more than we
expected. The winter months also increase bids some due to
working conditions being limited by cold tewperatures, rain,
snow, and other factors of nature.
The bid of R. L. Roberts Construction is recommended for
approval by City Council after evaluating the factors listed
above.
Jer CI
Ci t ng er
1s
0431E
r kriflw.Y: ~M.Y r.r'4~ M ..a~1W iyrYi. -MW✓. Nh. n . .i . .
DATE: December 16, 1986
CITY COUNCIL RE#roRT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BIM 9689 - PAINTING OFFICE WAREHME COMPLEX
RECOOG~l1DATI We recommend this bid be awarded to the only bidder Geroge
Painting Co. for the total amount of $13,260.00.
SUMMARY: This bid was sent to several prospective painting contractors.
We received only one bid and that from George Painting Company. This bid
requires liability insurance, which ellmated some of the smaller contractors,
Mr. George has already done some smaller painting contracts for us and we
have found his work quality and performance satisfactory.
BACl~ROIplO: Tabulation sheet
pis DEPART1%j S OR OWES AFFECTED:
rim IIiPAC Budgeted item
There is no additional impact on the general fund.
Respect lly subrgitted:
U /
Llo V. Harrell
City Manager
Prepared by:
amr. o J, Marshall, C.P.M.
Title: Purchasing Agent
Approved:
ohn J. Marshall, C.P.M.
Tifj~f Purchasing Agent
I J I I
8[D 1 9b89 I 8EOR8E I { I
DID TITLE PAINTIMB OFFICE COMPLEX/WI PAINTIN8 I I I
OPENED 12/4186 21" P.M, I CO. I I I
ACCOUNT1 I I I I
I I I I
- - - - - I--------- f-------------I
1 I QTY I ITEM DESCRIPTION ! VENDOR I VEMDDR I VENDOR I
_...-.,.--I-------------------------I------------- I-------------I-------------I
{ I I I I
i. I L8 IPAINTINS OFFICE COMPLEX 1 13,251.88 1 ! !
1 LAND WAREHOUSE I I I I
I I I I I
I I 1 I I !
J I I J i I
I I I I I I
1 I I I I I
I 4 I I I I
I I I J I !
I 1 I f I I
I I I I I I '
j
f
s
r
f
f
i
r
CERTIFICATE FOR
ORDINANCE CANVASSING BOND ELECTION RETURNS
THE STATE OF TEXAS :
COUNTY OF DENTON s
CITY OF DENTON :
We, the undersigned officers of said City, hereby certify
as followas
1. The City Council of said City convened in
REGULAR MEETING ON THE 16TH DAY OF DECEMB,9R, 1986,
at tht Municipal Building (City Hall), and the roll was called
of the duly constituted officers and members of said City
council, to-wit:
Charlotte Allen, City Secretary Ray Stephens, Mayor
Mark R. Chew Linnie McAdams
Jane Hopkins Jim Alexander
Jim Riddlesperger Joe Alford
and all of said persons were present, except the following
absenteess ,
thus constitut ng a quorum. ersupon, among other us ness,
the following was transacted at said Meeting: a written
ORDINANCE CANVASSING BOND ELECTION RETURNS
was duly introduced for the consideration of said City Council
and duly read. It was then duly moved and seconded that said
ordinance be passed; and, after due discussion, said motion,
carrying with it the passage of said Ordinance, prevailed and
carried by the following voter
AYES: All members of said City Council
shown present above 1;oted "Aye",
NOESs None.
2. That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; that said Ordinance has been duly recorded in said City
council's minutes of said Meeting; that the above and foregoing
paragra?h is a true, full, and correct excerpt from said City
Council s minutes of said Meeting pertaining to the passage of
said Ordinance; that the persons named in the above and fore-
going paragraph are the duly chosen, qualified, and acting
officers and members of said City Council as indicated therein;
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 Ordinance would be introduced and
considered for passage at said Meetings 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. St. Article 6252-17.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinances that the Mayor and the City
Secretary of said City have duly signed said Ordinancel and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
the signing of the attached and following copy of said Ordi-
nance for all purposes.
SIGNED AND SEALED the 16th day of December, 1986.
C ty secretary Mayor
(SEAL)
. r - - - - r - - - - - - - - - - • - - - - - -
We, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
certify that we prepared and approved as to legality the
attached and following Ordinance prior to its passage as
aforesaid.
City Attorney
Bon 4titlirneys
.`T f7i
ORDINANCE NO. 86
ORDINANCE CANVASSING BOND RECUON RETURNS
THE STATE OF TEXAS t
COUNTY OF DM'ON =
CITY OF DENTON :
WHEREAS, the City Council of said City ordered an election
to be held in said City on DECEMBER 13, 1986, on the PROPOSI-
TIONS hereinafter stated] and
WHEREAS, said City Council has investigated all matters
pertaining to said election, including the ordering, giving
notice, officers, holding, and awaking returns of said election]
and
WHEREAS, the election officers who held said election have
duly made the returns of the result thereof, and said returns
have been duly delivered to this City Council.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
1. That the City Council officially finds and determines
that said election was duly ordered, that proper notice of said
election was duly given, that proper election officers were
duly appointed prior to said election, that said election was
duly held, that due returns of the result of said election have
been made and delivered, and that the City Council has duly
canvassed said returns, all in accordance with law and the
ordinance calling said election.
2. That the City Council officially finds and determines
that the following votes were cast at said election on each
submitted PROPOSITION, by the resident, qualified electors of
said City who voted at the election:
PROPOSITION NO, 1
VOTES: FOR )
THE ISSUANCE OF $7,736,000
OF STREET AND TRAFFIC CONTROL
} IMPROVEMENT BONDS
VOTES: AGAINS!r )
PROPOSITION N0, 2
VOTESt FOR )
1 THE ISSUANCE OF $31166,000 OF
DRAINAGE IMPROVEMENT BONDS
VOTESs AGAINST }
PROPOSITION NO, 3
VOTESs FOR )
THE ISSUANCE OF $185,000 OF
ANIMAL CONTROL CENTER BONDS
VOTE-Is AGAINST )
PROPOSITION NO. 4
VOTESs FOR )
THE ISSUANCE OF $700,000 OF
FIAX STATION BONDS
VOTESs AGAINST )
PROPOSITION NO. 5
VOTESt FOR )
THE ISSUANCE OF $5,950,000 OF
PARK IMPROVEMENT (ATHLETIC
FIELD AND NEIGHBORHOOD AND
SENIOR CITIZENS COMMUNITY
CENTER) BONDS
VOTESt AGAINST )
PROPOSITION NO. 6
VOTESt FOR )
THE ISSUANCE OF $1,000,000 OF
LIBRARY BONDS
VOTESt AGAINST )
PROPOSITION Nov 7
VOTESt FOR )
THE ISSUANCE OF $2,600,000 OF
LAW ENFORCEMENT AND COURT
BUILDING BONDS
VOTES t AGAINST )
3. That the City Council officially finds, determines,
and declares the result of said election to be that the fore-
going PROPOSITIONS so submitted have received a favorable
majority vote in all respects and have carried, and that the
bonds voted thereunder may be issued in accordance with law.
r r rr r r r r r r~ r r~ r r r r r r r r r r r r r r r r r r
DATE. 12-16-e
CITY COUNC I L RAEORT FORMAT
TO: Mayor and Members of the City Council
PROM: Lloyd Harrell, City'Nanager
SUBJBCT: ADOPTION OF AN ORDINANCE AUTHORIZING THE MAYOR TO
EXECUTE AN AGREEMENT WITH HAYWOOD JORDAN MCCOWAN
AND GARY JUREN ARCHITECTS & COMPANY RELATING TO
RBCOMM4NDATION: THE RENDERING OF PROFESSIONAL. ARCHITECTURAL SERVICES
The Community neveloph:ent Block Grant Committee
and Parks and Recreation Advisory Board recommend
approval.
SUb1MAR Y:
-The recommendation was reached after Requests'-for
Proposals were solicited and interviews were con-
ducted with staff, CDBG Committee and Parks Board
input.
BACKGROUND:
The Community Development Block Grant Committee
and Parks and Recreation Advisory Board recommended
approval at their joint meeting'of November 60 1986,
` PROGRAMS ► DEPARTMENTS OR GROUPS AFFBCTW4.
The CDBG Program is funding the architectural ser-
vices for the Martin Luther King Jr. Recreation
Center.
li
FISCAL IMPACT:
li Not Applicable
I
Respectfully submitted:
II
III Prepared by: Ll Mari, C ty ager
Eli et Evans
l; Community Development Manager '
APp Ve ,
Jeff Me
Director of Planning and
Development
.3'
MAL
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH
HAYWOOD JORDAN MCCOMAN AND GARY JUREN ARCHITECTS 4 COMPANY
RELATING TO THE RENDERING OF PROFESSIONAL ARCHITECTURAL SERVICES
FOR THE DESIGN ON A C014MUNITY CENTER= AND PROVIDING FOR AN
EFFECTIVE DATE.
1
NOME, THEREFORSt THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I*
That the Mayor is hereby authorized to execute an agreement
with Haywood Jordan McCowan and Gary Juren Architects B Company
relating to the rendering of Professional architectural services
for the design of a community center, a copy of said agreement
being attached hereto and incorporated by reference herein.
SECTION II.
That the expenditure of funds in the amount of $950000 is
hereby authorized.
SECTION III6
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED THIS THE day of 19864
r
M
CITY OF DENTON, TEXAS
ATTEST:
,
CHARLUTTE ALLEN, CITY .
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BYs d
'1,' 71 1
4 t f ' §N
THE AMERICAN INSTITUTE OF ARCHITECTS
.I
AIA Document 8147
Standard Form of Agreement Between
Owner and Architect
1977 EDITION
THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES; CONSULTATION WITH
AN ATTORNEY IS ENCOURAGEO, WITH RESPECT TO ITS COMPLETION OR MODIFICATION
AGREEMENT
made as of the Thirty-first day of October in the year of Nineteen
Hundred and Eighty-six
r
BETWEEN the Owner: City of Denton
and the Architect: Joint Venture
Haywood Jordan McCowan- Dallas
Gary Juren Architeotn & Co.- Denton
For the following project:
?Include detailed description of Project location and scope.)
A 200000 square loot community center located an a
5t5 Aore site at Morse St,Newton Ste Wilson Ste Denton, Tx.
The Owner and the Architect agree as set forth below.
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TERMS AND COND17IONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT
i
A TIC 1 means to previous Statements of Probable Construction
ARCHITECT'S SERVICES AND RESPONSIBILITIES Cost Indicated by changts In tequlremenes or general
market conditions,
BASIC SERVICES 1.3.4 The Architect shall assist the owner in connection
The Architect's Basic Services consist of the five with the Owner's responsibility for (Sprig documents re-
.
phases described In Paragraphs 1r1 through 1,5 and quired for the approval of governmental authorities hav.
incl.;J@ normal structural, mechanical and electrical Ing Jurisdiction over the Project.
engineering services and any other services Included 1,4 BIDDING OR NEGOTIATION PHASE
in Article 15 as part of Basic Services, 1,4.1 The Architect, following the Owner's approval of
1,1 SCHEMATIC DESIGN PHASE the Construction Documents and of the latest Statement
1.1.1 The Architect shall review the program furnished of Probable Construction Cost, shall assist the Owner In
by the Owner to ascertain the requirements of the Project obtaining bids or negotiated proposals, and assist in
and shall review the understanding of such requirements awarding and preparing contracts for construction,
with the Owner. 1,S CONSTRUCTION PHASE-ADMINISTRATION
1.1.4 The Architect shall provide a preliminary evalua- OF THE CONSTRUCTION CONTRACT
tion of the program and the Project budget requirements, 1,3 ,1 The Construction Phase will commence with the
each in terms of the other, subject to the limitations set award of the Contract for Construction end, together with
forth in Subparagraph 3.21. the Architect's obligation 10 provide Basic Service under
1.1,3 The Architect shall review with the Owner alterna- this Agreement, will terminals when final payment to the
tive approaches to design and construction of the Project, Contractor is due, or In The absence of a final Certificate
1.1,4 Based on the mutually agreed upon program and for Payment or of such due date, sixty days after the Date
Project budget requirements, the Architect shall prepare, of Substantial Completion of the Work, whichever occurs
for approval by the owner, Schematic Design Documents first,
consisting of drawings and other documents Illustrating 1.5.2 Unless otherwise provided in this Agreement and
Architect
the scale and relationship of Project comIonerves, Incorporated In the Contract Documents, the
/ 1.1.5 The Architect shall submit to the Owner a State. shall provide administration of the Contract for Construc-
ment of Probable Construction Cost based on current tion as set forth below and In the edition of AIA Docu-
area, volume or other unit costs. ment A201, Central Conditions of the Contract for Con-
1,4 DESIGN DEVEIUPMENT PHASE struction, current as of the date of this Agreement.
1,5.3 The Architect shall be a representative of the
1.2.1 Based on the approved Scher -Wic Design Docu- Owner during the Construction Phase, and shall advise
menu and any adjustments authorized b the Owner in and consult with the Owner. Instructions to the Contrac•
'F the program or Project budget, the Architect shall pre. for shall be forwarded through the Architect. The Archi-
pare, for approval by the Owner, Design Development sect shall have authosily to act on behalf of the Owner
Documents consisting of drawings and other documents only to the extent provided in the Contract Documents
to fix and describe the size and chatacter of the entire unless otherwise modified by written instrument In ac,
Project is to architectural, structural, mechanical and elec- cordance with Subparagraph 13.16,
Irical systems, materials And such other elements as may 1,5,4 The Architect Shall visit the site at Inlema'. AP-
be spproprialer propriale to the stage of construction or as otherwise
1,4.2 The Architect shall submit to the Owner a further agreed by the Architect in writing to become ggenerally
Statement of Probable Construction Cost, familiar with the progress and quality of the Work and to
a 1.3 CONSTRUCTION DOCUMIN16 PHASE determine In general If the Work Is proceeding in accord-
ance with the Contract Documents. HoNe,er, the Archt-
1.3.1 Based on the approved Design Deveioprnent Doc• sect shall not be required to make exhaustive or con-
umenis and ant- further adjustments in the scope or quit' tinuous on-site inspections to check the quality or quan•
Iii, of the Project or In the Project budget authorized by tits of the Work, On the basis of such oh-site obsen+a•
the Owner, the Architect shall prepare, fur appro%ai by tions as an architect, the Architect shall keep the Owner
the Owner, Construction Documents. consisting of DraW• informed of the progress and quality of N S't'ork, and
Inge and Specificatlons setting forth in detail the require. shall endeavor to guard the Owner aga nA defects and
means for the construction of the Project. deficiencies In the Work of the Contractor,
1.3,3 The Architect shall assist the Owner in the prepara• 1,5.3 The Architect shall not have control or charge of
tion of the necessary bidding information, bidding forms, and shall not be responsible for construction means,
the Conditions of the Contract, and the form of Agree- methods, techniques, sequences or procedures, or for
ment between the Owner and the Contractor, • saftty precautions and programs In connection with the
11,111.3 The Architect shall advise the Owner of any adjust. Work, for the acts or omissions of the Contractor, Sub-
AIA twKtimim ow • ow%rkrARCM+ v Ac.(INH', 1"711r~.1N full +irk% AIAt ~ `W.
INI Ar. LMA.% 1`U111TUTt tN ARCH11KIV 1W kta WAN A1INt1, N V t~ ASM VGtUti, D.c ;car.. 6141.1177 3
contractor or any other, persons pedorming any of the nKessary or mMsable for the lmptetnel+tatiort of tht lntent
work, or for the I:, Ilum of any of them to carry out the of the Contract Documents, the Architect will have author-
Work in accordance with the Contract Documents, Ity to require special inspection or testing of the Work In
accordance with l1w provisions of the Contract Docu•
IJA Wor The Architect shell at all times have access to the menu, whether or not such Work be then fabricated, In-
Work whatever It Is in preparation or progress, stalled or completed,
1.3.7 The Architect shall detrrrmine 11x4 amounts owing stalled
The hplettect shall review and approve or take
to the Contractor based ac observations iII the site yind m on o1.5.13 of ther appropriate action upon the Contractor's submituk
evalulihall ations u the Contractor's Payment Applications for Payment, such as Shop Drawings, Product Data and Samples, but
and tissue Certificates for Payment in such amounts, only for conformance with the design concept of the
as prooyl vided in the Contract Documents, Work ane with the Information given In the Contract
1.33 The issuance of a Certificate for Payment shall Documents. Such action shall be taken with reasonable
constitute a representation by the Architect to the Owner, promptness so as to cause no delay. The Architect's Ap•
based on the Architect's observations at the site as pro. proval of a specific Item shall not Indicate approval of an
vided In Subparagraph 1,3,4 and on the data comprlslna assembly of which the Item is a component.
the Contractor's Application for paymen(, that the Work 1,5.14 The Architect shall prepare Change Orders for
has progressed to the hint Indicated; that, to the best of the Owner's approval and execution In accordance with
the Architect's knowledge, information and belief, the qual• the Contract Documents, and shall have authority to order
Ity of the Work is in accordance, with the Contract Docu• minor changes In the Work not Involving an adjustment
menu (subject to an evaluation of the Work for con- in the Contract Sum or an extension of tho Contract Time
formance with the Contract Documents upon Substantial which are not inconsistent with the Intent of the Contract
Completion, to the results of any subsequent tests re- Documents,
quired by or performed under the, Contract Documents,
to minor deviations from th 1.5,16 The Architect shall conduct Inspe ,lions to deter-
e, Contract Documents cor•
Substantial c Completion and final corn-
rectable prior to completion, and to any specific quallfica• mine the Dates Architect
lions stated In the Certificate for 'Payment); and that the pletiun, shall receive and forward to the Owner for the
Contractor Is entitled to payment in the amount certified. Owner's review written warranties and related documents
However, the issuance of a Certlifcate for Payment shall required by the Contract Documents and assembled by
not be a representation that the Architect has made any the Contractor, and "It issue a final Certiflcate for Pay
examination to ascertain how amd for what purpose the ment.
Contractor has used the moneys paid on account of the 1,5.16 The extent of the duties, responsibilities and lim•
Contract Sum, Itations of authority of the Archilect m the Owner's rep-
b the interpreter of the re• resentattve during construction shall not be modified or
1.3.9 The Architect shah be of the Owner, the Con•
consent o +
written
ul►ements of the Contact Documents and the judge of etractorxtended and the without Mchttect,
the performance thereunder by both the Ow and REPRESENTATION BEYOND 111441C URVICES
Contractor. The Architect shall render Imterpretat'.on ons rats. 1.6 P'cO1ECT R
essary for the proper cm„ 'rtian or progress of the Work ,6er and Archtteet agree that more ex-
with reasonable promptness on written request of either 1 1.6.1 1 a If the represe Owner and the site than is described
the Owner or the Contractor, and shall render written der Paragraph 1,5 shall be provided, the Architect shall pro. at In
and o other within matte a r reasonable question betlime, a all claims, disputes vide one or more Project Representatives to assist the
, an an the Owner and the Architect in carrying out such responsibilitles at the site.
Contractor relating g 10 the execution ion or Progress of the
Work dr•the interpretation of the Contract Documents. 1.63 edSuand ch d eeettd byRepresentatives the Architect, shall and the Ard, em-
consistent with the a t decisions the Architect shall shall be compensated therefor as mutually agreed be-
1.5.10
from the tContract 0 unmentsands rehallsbeainl written b or tween the Owner and the Architect as set forth in an ex-
a hip form, In the capacity of Interpreter and judge, hibli appended to this Agreement, which shall describe
the duties, rtsponsibifities and limitations of authority of
the Architect shall endeavor to secure faithful perform.
ante by both the Owner and the Contractor, shall not such Protect Representatives,
show partiality to either, and shall not be liable for the 1.6.3 Through the observatlons by such Project Repre-
result of any Interpretation or decision rendered In good sentatives, the Architect shall endeavor to provide further
faith In such capacity, protection for the Owner against defects and deficiencies
in the Work, but the furnishing of such project reptesenls,,
1.5,11 The A's 04tie. of ect thaO betfinal ifs cronsisitent loth the Inttent of lion shall not modify if e rights, respor+ifb111ties or oI
lions of the Architect as described in Paragraph I.S.
the Contact Documents, the Archilect s dechions on
any other claims, dispulees or other matters, Including 1,7 ADDITIONAL SERVICES
those In question betvretn the Owner and the Contractor, The following Smites are not Included In 9ask
shall be subject to arbitlalton as provided Ir ',his Agree. Services untess so Identified In Article 13. They shall
ment and in the Contrac'. Documents, be, provided if authorized or confirmed In writlmt; by
1.3.12 The Architect sholf have authorltylo reject Work the Owner, and they shall be paid for by tho Owner
which does not conform to the Contisct Documents, as provided in this Agreement, In addition to the
Wtwmevt,, In the Architect's reasonable opinion, It Is compensation for Basic Services.
01~CA AACMITIC1t 1'1.5 N1M• •tKMA1 tMINUt N W, 41,11%0104 DIE, XMIX
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1.T.1 ProW&S analysis Of the Owner's needs, and pro structlon, and furnishing services to be ngtt W in
shamming the requltomionts of the Project. connection with the replacement of IWGri Work.
1.72 Providing financial feasibility or other special 1.7.16 Providing services nude necessary by the default
studies. of thlr Contractor, or by major defects or deficlenclas M
1.73 Providing planning surveys, site m aluations, envi• the Work of the Contractor, or by failure of performance
ronmerttal studies or conrative studies of tive of either the Owner or Contractor under the Contract for
styes, and preparing specialMsurveys, studies andro!submis• Construction,
sions requ for approvals of governmental authorities 1.7.17 Preparing a set of reproducible record drawing
or others having jurisdiction over the Project. showing significant changes in the Work made duri
construction based on. marked-up prints, drawing al
1.7,4 Providing services relative to future facilities, sys• other data furnished by the Contractor to the Architect
tems and equipment which are not intended to be con-
strutted during the Construction Phase, 1.7.18 Providing extensive assistance in the utilization of
1.7.3 Providing services to investigate existing conditions any equipment or system such as Initial start-up or testing opera adjusting and balancing, preparation of
tion anti
or facilities or to make measured drawings thereof, or to maintenance manuals, training personnel for operation
verify the accuracy of drawings of other information fur- and maintenance, and consultation during operation.
nished by the Owner, 1,7,19 Providing services after Issuance to the Owr.Ar of
1,7.6 Preparing documents of alternate, separate or the (trial Certificate for Payment, or in the absence of a
sequential bids or providing extra services !r; connection final Certificate for Payment, more than sixty da/s after
with bidding, negotiation or construction prior to the the Date of Substantial Completion of the Work.
completion of the Construction Oocuments Phan, when 1,7.20 PrepiHng to serve or serving as an expert witness
requested by the owner. in cone tcitun with any public hearing, arbitration pro-
1.7.7 Providing coordination of Work performed by ceeding or legal proceeding,
separaw contractors or by the Owner's own forces. 1.7.21 Providing services of consultants for other than
VA Providing services In curtnestion with the work of the normal architectural, structural, mechanical and cite
a construction manager or aeparsta consultants retained trical engineering services for the Project.
by the Owner. 1.7.22 Providing'any other services not otherwise In-
1.7.9 Providing Detailed Estimates of Construction Cost, cluded In this Agreement or not customarily furnished In
analyses o(owning and operating costs, or detailed quan• accordance with generally accepted ar :Ntectuml practice.
tity surveys or Inventories of material, equipment and 1,8 It"
labor, 1.4.1 The Architect shall perforce Basic and Additional
1.7.10 Providing Interior design and other similar ser- Services as expeditiously as is consist.nt with professional
vices required for or In connection with the selection, skill and care and V e orderly progress of the Work. Upon
procurement or Installation Of furniture, furnishings and request of the Owner, the Architect shall submit for the
related equipment. Owner's approval a schedule for the performance of the
1.7.11 Providing services for planning tenant or rental Atchilect's ser: ices which shall be adjusted as required as
spaces, the Project proceeds and shall Include allowances for peri-
ods
1.7,17 Making revisions In Drawings, Specifications or of titre requltO for the Owner's review and approval
other documents hen such recisions are Inconsistent of submissions and lot approvals of authorities having
jurisdiction over the Project. This schedule, when approved
with written approvals or Instructions previouoy given, by the Ownet, shalt not, except for reasonable cause, be
are required by the enactment or revision of codes, laws exceeded by fire Architect,
or regulations subsequent to the preparation of such doc-
umenis or are due to other causes not solely within the
control of the Architect, ARTICLE
1.7,13 Preparing Drawings, Specifications ,nd supporting THE OWNER'S RESPONSIBILITIES
data and providing other services In connection with
Change Orders to the extent that the adjustment in the 2,1 The Owner shall pro',ide full information regarding
Basic Compensation resulting from the adjusted Con- requirements for the Project Including a program, which
struclion Cost Is not commensurate with the services re• shall set forth the Owner's design otiectives, conotaints
qulred of the Architect. prodded such Change Orders are and criteria, including space requirements and relation-
recl fired by causes not softly within the control of the ships, fltkibiliiy,and ekpandsbiiity, special equipment and
Architect, s) sterr.s and site requirements,
1.;7.114 Making Investigations, surveys, valuation s,'inven• 2.2 If the Owner provides a budget for the Project It
toNes or detailed appraisals of existing facilities, and sorv- shall Include contingencies for bidding, changes M the
Ices' required in connection with construction performed Work during construction, and other costs which are the
by the Owner. responsibility of the Owner, Including those described in
this Article 2 and in Subparagraph 3.1.2, The Owner shall, .
1.7.15 Providing consultation concerning replacement of at the request of the Architecl, provide a statement of
any 11'ork damatted b1 dire or other cause during con• funds avaiiabte for the Pr*a and their Ksurce.
ALA DOGUINtk1 19041 • Q%%%l&•Ak? HI tC! ACkitmf . 1K r'LI'.'• L1+,';.,♦ . 1 16" 6 4U4
141 AMItKAF, INS11ttftt CH ANCH"iCTS, 1!3s ►itw VOU AvINUt. hIA., 1AP141hGTON, DX X" 8141.1!77 5
41
~i'hlt Owner Oil desigi+ate when net;eitsJw: a rep. li;lred, soecit7ed. 40'e.ted ~r specially provided lot by
7f04.#r1tJ11V#
at,•M0490d to act in the Owne• 4 behatf with the +rchow.
re!pect to the Protect. The Owner or such authorized 3.1.3 Construction Cagt dues not include the comptn•
rep►esentatlve ri+altautmrne the documents submitted by • sation of the Architect and the Architect's consultants,
the Architect and shall render decisions pertaining thereto the cost of the land, Pubs•of•way, or other costs which
promptly, to avoid unreasonable delay In the progress of are the responsibility o1 the Owner m provided In Arti•
the Architect's services, cle 2.
2.4 The O%t met shall furnish a legal description and a
certified land sun ev of the site, giving, 4s applicable, 3.2 41"ONSIe10" foot CONSTAVCTION COST
grades and 'es of Itreetl, all.+s, pavernents and adjoin- 3.2,1 Evalt,mofis of the U+vner's Project budget, State•
ins prop trty; rlght► of•a ay, restrictions, easements,' en• meets of Probable Constn,Irtion Coil and Detailed
croachments, zomnt, deed restrictions, boundaries and Estimates of Construction Cost, If any, prepared by the
contours of the site; locations. dimensions and complete Architect, represent the Architect's best judgment as a
data pertain+r; to eristirg buildings, other Improvements design professional familiar with the construction Indus-
and trees; and full information concerning available serv• try, It is recogmlzed, however, that neither the Architect
ice and utility tines both public and private, above and nor the Owner has control over the cost of labor, mate-
below grade, including Inverts and depths, rials or equipment, over the Contractor's methods of de-
2.5 The Owner shall furnish the services of soil engl• termining bid prices, or over competitive bidding, market
meets or other consultants when such services are deemed or negotiating conditions, Accordingly, the Architect
necessary by the Architect, Such services shall Include test cannot and does not warrant or represent that bids or
borings, lest pits, soil bearing values, percolation tests, air negotiated prices will not vary from the Prot budget
and water pollution tests, ground corrosion and resistivity proposed, established or approved by the Owner, it any,
tests, including necessary operations for determining sub. or from any Statement of Probable Construction Cost or
soil, air and water conditions, with reports and appropri• other cost estimate or valuation prepared by tM Archl•
ate professional recommendations, test,
2.tr The Owner shall furnish structural, mechanical, 3.2.2 No fixed limit of Construction Cost shall be estab-
chemical and other laboratory tests, Inspections and re• lished as a condition of this Agreement by tM furnishing,
ports as required by law or the Contract Documents, proposal or establishment of a Project budget under Sub-
2.7 The Owner shall furnish all legal, accounting and In- par: taph 1,1.2 or Paragraph 2,2 or otherwise, unless such
surance counseling services as may be necessary at any fixed Iimit has been agreed upon In writing and signed by
time tot the Project, Including such auditing services as the parties hereto, If such a fixed limit has been *stab-
the Owner may require to verify the Contractor's Appllu• Ilshed, the Architect shall be permitted to include eon-
tingencles for dtsitin, bidding and price escalation, to de-
lions for Payment or to ascertain how or for what put- termine what materials, equipment, component systems
potter the Contractor uses the moneys paid by or on be- and types of construction art to be included in the Con-
half of the Owner, tract Documents, to makt reasonable adjustments In the
2.8 The services, information, surveys and reports re• scope of the Project and to Include in tM Contract Docu-
quired by Paragraphs 2,4 through 2.7 Inclusive shall be menb alternate bids to adjust the Construction Cost to the
fumished at the OwnerIs expense, and the Architect shall fixed limit, Any such filled limit shall be Increased In the
be entllltd to rely upon the accuracy and completeness amount of any Increase In the Contract Sum occurring
thereof. after execution' of the ontracl for Construction,
2.9 If the.gwner observes or otherwise becomes aware 3,2,3 If the Bidding or Negotiation Phase has not com-
of any fault or defect in the Project of nonconformance menced within three months after the Architect submits
with the Contract Documents, prompt written notice the Construction Documents to the Owner, any Project
thereof shall be given by the Owner to the Architect, budget or fixed limit of Construction Cost shall be ad-
2.10 The Ov+ner shall furnish required Inforniatiors and justed to reflect any change in the general level of prices
services and shall rends- approvals and decisions as ex- in the construction Industry between the date of submis-
peditiously as necessary for the orderly progress of the lion of the Construction Documents to the Owner and
Architect's services and of the Work, the date on which proposals are sought.
3.2.4 If a Project budget or fixed limit of Construction
ARTICLE 3 Cost (adjusted as provided in Subparagraph 313) is
ex- ceeded by the lowest bona fide bid jr negotiated pro-
posal, the Owner shall (1) give written approval of an
3.1 DEfINfTION increase in such fixed limit, (2) authorize rebidding or w
3,1.1 The Construction Cost shall be the foal cost or negotiating of the Project within a reasonable time, (3) if
estimated cost to the ion Owner of all elements of the Project the Project Is abandoned, terminate in acd,darsct with
Paragraph 10.2, of (4) cooperate In revising the Project
designed or specified by the Architect or
scope and quality as required to reduce the Construction
3.1.2 The Construction Cost shall Include at current Cost. In the case of (4), provided a fixed limit of Construe
market rates, Including a reasonab'Ie allowance for over- tion Cost has been established as a condition of this Agree.
Mad and profit, the cost of labor and materials furnished meat, the Architect, without additional durge, shall mod.
by the Owner and any equipment which has been da ify the Drawings and Specifications as necessary to comply
i t3141.197! AEA 00CUM40 9141, OWN11.AKNITtCT AC INV4T • TNlaMWH 1011T ON MY tsrr it AIM ♦ e)T+n
?NJ AMIIICAN WSTIM111 Or ARCN111101, eras M1W VM AYMIR, N.W„ WA1II04TON, O.C. 3M
with the fixed limit, The providing of such serrin shall be or extended through no fault of the Architect, compertet0
thtt limit of the Architect's responsibility edglhg from the don for any Basic Services required for mKh extended
ealablishment of such fixed dmil, and having done so, the period of Administration of the Construction Contract
Architect shall be entitled to compensation for alt services shall be computed its set forth in Paragraph 14A for Addi-
performed, in accordance with this Agreement, whether tional Services.
or not the Construction Phase is commenced, 6.1,4 When compensation is based on is percentage of
Construction Cost, and any portions of the Project are
RTIl1 CLE 4 deleted or otherwise not constructed, compensation for
DIRECT PERSONNEL EXPENSE such portions of the Project shall be payable to the extent
services are performed on such portions, in accordance
4.1 Direct Personnel Expense Is defined as the direct sal- with the schedule set-forth In Subparagraph 14.2.2, based
aries of all the Architect's personnel engaged on the Proj• on (1) the lowest bona fide bid or negotiated proposal or,
act, and the portion of the cost of their mandi-tory and (2) If no such bid or proposal is received, the most recent
customary contributions and benefits related tiureto, such Statement of Probable Construction Cost or Detailed Isti•
as employment taxes and other statutory emr!oyee bene- mote of Construction Cost for such portions of the Project.
fits, Insurance, sick leave, holidays, vacations, pensions PAYMENTS ON ACCOUNT Of
and similar contributions and benefits, ADDITIONAL RRVICES
ARTICLE 3 6,2.1 Payments on account of the Architect's Additional
Services as defined in Paragraph 1.% and for Reimbursable
REIMBURSABLE EXPENSES -Expenses as defined In Article S shall be made monthly
3.1 Reimbursable Expenses are In addition to the Com- upon presentation of the Archilect's statement of services
rendered or expenses Incurred.
penutlon for Basic and Additional Services and include
actual expenditures made by the Architect and the Archl• L3 PAYMENTS WITHHELD
text's, employees and consultants In the Interest of the 6,7.1 No deductions shall be made from the Architect's
Project for the expenses Mster+ In the following Sub- compensation on account of penalty, liquidated damages
paragraphs; o1 other sums withheld from payments to contractors, or
3.1.1 Expense of transportation in connection with the on account of the cost of changes in the Work other than
Project; llvin{ expenses in connection with out-of•lown those for which the Architect is held legally liable.
travel; long dlslance commuc.icationsl and fees paid for 6,4 PROJECT SUSPENSION OR TERMINATION
securing approval of authorities having jurisdiction over 6.4.1 If the Project is suspended or abandoned In whole
the Project. or in part for more than three months, the Architect shall
5.1,7 Expense of reproductions, postage and handling of be compensated for all services performed prior to receipt
Drawings, Specifications and other documents, excluding of writlen notice from the Owner of such suspension or
reproductions for the office use of the A►chllecl•and the abandonment, together with Reimbursable Expenses then
Architect's consultants, due and all Termination Expenses as defined in Paragraph
5,1,7 Expense of data processing and photographic pro. 10.4. If the Project Is resumed after being suspended for
duction techniques when used In connection with Addl• more than three months, the Architect's compenalioI
Ilonal Services, shall be equitably adjusted,
SAA If authorized In advance by the Owner, expense of
overtime work requiring higher than regular rates. ARTICLE 7
3.13 bxpense of renderings, models and mock-ups re- ARCHITECT'S ACCOUNTING RECORDS
quested by the Owner. 7.1 Records of Reimbursable Expenses and expenses per
5.1.6 Expense of any additional Insurance coverage or laining to Additional Services and services performed on
limits, Including professional liability insurance, requested the basis of a Multiple of Direct Petsonnel Expanse shall
by the Owner in excess of that normally carried by the be kept on the basis of generally accepihJ accounting
Architect and the Architect's consultants, principles and shall be available to the Owner or the
ARTICLE 6 Owner's authorized representative at mutually convenient
times.
PAYMENTS TO THE ARCHITECT ARTICLE B
6.1 PAYMENT!; ON ACCOUNT Of BASIC SERVICES OWNERSHIP AND USE Of DOCUMENTS
6.1.1 An Initial payment as set forth in Paragraph 14.1 Is 8.1 Drawings and Specifications as Inslnrments of serv-
the minimum payment under this Agreement, Ice are and shall remain the proper4, of the Architect
6.1.2 Subsequent payments for Basle Services shall be whether the Project for which then are made is orx~lcuted
made monthly and shall be In proportion to services per- or not. The Owner shell be permitted to retain copies, In-
fotnwd within each Phase of services, on the basis fat eluding reproducible copies, of Drawings and Specific-
forth in Article 14, 0 lions for information and reference In conneclion with the
r~ 6.1.3 U and to the eulent that the Contract Time initially Owner's use and occupancj• of the Project. The Drawings
established in the Contract for Const.uction Is exceeded and Specifications shall not be used M' the Owner on
AIA 00CVMM 0141 • OWNL1,0CH,tIC1 ACA{IMW • IMIVI:IN-H • I'..Y 11" • AIM • Q 1~"
044 AMIAICAA WIVITNtr W AXILMIT►CU. 1lSS N1* IOU A►'IAILt. AYL, 1RASMW010%, D.C. ]oar X141-1li"I
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other projects, for additions, to the,- Fh4act, or for compte• expenft
lion of INS Pooled by Others provkfied the Architect is trot ibuu to termination for which tare Ardtl
•
in default under this Agreement, except by agreement in hortwiw nseted, plus an amount As
writing and with appropriate compen.ation to the Arthi• rcentage of oral oasis and Adds
test, 1 earned to the i o} terrrsk►a1i s fotlowss
S.2 Submission or distribution to meet official regulatory, A 20 percent if term cuts during the
requirements or for other purposes In connection with the malic Design Pha
Project Is not to be construed as publication In detogattor ,2 10 percent Inalion o during the
of the Architect's rights. Devel nt Phan; cw
.3 cent If termination occurs durin su
ARTICLE !
ARBITRATION ARTI . 11
All claims, disputes and other matters in qu Ion MISCELLANEOUS PROVISIONS
be on the parties to this Agreement, arising ou of or
relati to this Agreement or the breach thereof, all be 1.1 Unless 11.1 Unlaess otherwise specdied, this Agreement dull be
decide arbitration In accordance with the onstruc• Sovemed by the law of the principal piota of business be
lion Ind try Arbitration Rules of the Amerl ArbltrA• the Architect,
lion As lion then obtaining unless the rues mutu- 11,2 Terms In this Agreement shall have the same mean-
ally Agree twist, No arbitration, arisin out of or re- ing as those in AIA Document A201, General Conditions
latin66 to this greement, shall include, consolidation, of the Contract for Construction, current as of the date
jolnder or In a other manner, any a oral person not of thin Agreement.
a party to this A Bement except by teen consent con- 11.3 As between the PParties to the AgrNment: as to all
raining a specific Terence to this meet and signed acts or failures to art by either party to this Agreement,
by 14 Architect, t Owner, and a other person sought any applicable statute of limitations shall commence to
to be Joined. Any c sent to arb atlon involving an ad- run and any alleged cause of action shall be deemed to
ditional person or per no. shall t constitute consent to have accrued in any and all events not later than the rele-
arbitration of any disp a no ribed therein or with vent Dale of Substantial Completion of the Work, and as
any person not named ►ibed therein. This Agree- to any acts or failures to act occurring after the relevant
ment to arbitrate and any reement to arbitrate with an Date of Substantial Completion, not later than the date of
additional person or Pt duly consented to by the issuance of the final Certificate for Payment.
parties to this A`reeme she be specifically enforceable 11.4 The Owner and the Architect waive all rights
under the prevailing A tratio aw. against each other and against the contractors, consult-
91 Notice of the mand for a itralion shall be flied in ants, agents and employees of the other for damages cov
writing wllh the er party tot Agreement and with Bred by any proFerty Insurance during construction as set
the American A ilallon Assoclat The demand shall forth in the edit on of AIA Document A201, General Con-
be made wlthi a reasonable time a r the claim, dispute ditions, current as of the date of this Agreement, The
or other mat r Kin question has arise In no event shalt owner and the Architect each shalt require a ropriate
the deman for arbitration be made a r the date when similar waivers from their contractors, consultants and
Institull of legal or equitable prod 'ings based on agents.
such cl , dispute or other matter In tior would be
barre y the applicable statute of limitali ARTICLE 12
9.3 he award rendered by the arbitrators s 11 be final, SUCCESSORS AND ASSIGNS
a Judgment may be entered upon 11 in acco nce with
plicable law In any court having jurisdiction I. roof, 12.1 The Owner and the Architect, respectively, bind
themselves, their partners, successors, assigns and legal
representatives to the other party to this Agreement and
ARTICLE 14 to the partners, successors, assigns and legal representa-
TERMINATION OF AGREEMENT lives of such other party with respect to all covenants of
This ASiv*ment. Neither the Owner nor the Architect shall
10.1 This Agreement may be terminated by either party assign, sublet or ttnnsfer any interest in this Agreement
upon seven days' written notice should the other party without the written consent of the other,
fail substantially to perform in accordance with 111 terms
through no fault of the party initialing the termination. ARTICLE 13
10,2 This Agreement may be terminated by the Owner
upon at least seven days' written notice to the Architect EXTENT OF AGREEMENT
in the event that the Project is pem isnontly abandoned. 13,1 This Agreement represenlt the entire and Integrated
10,3 In the event of termination not the fault of the Ar- agreement between the Owner and the Architect and
chitect, the Architect shall be compensated for all services supersedes all prior negotiations, representations or agree-
performed to termination date, together with Reimburs• ments, either written or oral. This Agreement may be
able Expenses then due s amended only by written instrument signed by. both
Owner and Architect.
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TI LE 14 .
BASIS Of COMPENSATION
The Owner shall compensate the Architect for the Scope of Services provided, in accordance with Article 6, Payments
to the Architect, and the other Terms and Conditions of this Agreement, as follows;
14.1 AN INITIAL PAYMENT of Three Thousand Rve Hundred'
dollars(t 3
shall be made upon execution of this r 540. ) .
Agreement and credited to the Owners account as follows:
Credited to last payment at Schematic Des1,9n
14.2 BASIC COMPENSATION
14.2.1 ' FOR BASIC SERVICES, as described in paragraphs 1.1 through 1' 5, and any other services included in Article 15
a$ part of Basic Services, Basic Compensation shall be computed as follows:
W ~ bask of e° ►r"~rAon, MrefR/ ~,f :tisane, nwlNpla a perNnraMer, mw wawy maw M w~ud Inucrhr IwMNr er eonywnw.
Compaensati,on shall be a Fixed Fee or Ninety Thoutdnd Dollars 09atow1,1
I
14,2.2 Where compensation Is based on a Stipulated Sum or Percentage of Construction Cos
S&Mm shall be made as provided In Subparagraph 6,1,2, so that Basic Compensation forwach Phase chilli
equal the following percentages of the total Basic Compensation payable:
UftlL * ow "Wow Alm as rl/ptWim.)
I
Schematic Design Phase; Thfirt
Design Deveiopnwt Phase: pi;( teen percent (30 a
Construction Documents Phase: Thi,rt~r percent ( 0, 96)
Bidding or Negotiation Phase; Fi Vb percent (30 g4)
Construction Phase: Twenty, percent (2S
percent { 0
I
14.3 FOR PROJECT REPRESENTATION BEYOND BASIC SERVICES, as described In Paragraph 1.64 Compensation shall
be computed separately in accordance with Subparagraph 1,6,2,
AM Ir N • IM Im • nl . r
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14A COMM4ATION FOR ADDITIONAL SERVK U
14*1 FOR ADDITIONAL SERVICES OF THE ARCHITECT, as described in Paragraph 1.7, and any other services in-
cluded M Mtklt 1s as pan of Additional Service, but excluding Additional Services of consultants, Compen-
sation shall be computed as follows:
(Hata Inam tale of ka. Mcfalift F#W 4040w MoWtO f of Chaco P.norw*1 lwow set hinroolo arld arnNolrrf, and Wm;h Prlnrlpaff
aw tfrrNy eMPfoyeMr, l1 fpuNel. "Wit' flofti c ttwkM to whkh panitular nwlhoAi or comp" "10A yPlr, H rrtnury.l
Principals and employees# time at a mtlti le of lel tithes
their Direct Personnell Expense as defined in Article 4.
'
14.4.2 FOR ADDITIONAL SERVICES OF CONSULTANTS, lntluding addltional structural, rr,*chanical and electrical
engineering services and those provided under Subparagraph 1,7,21 of identified in Afii,;ie 15 as part of Addl-
tlonst Services, a multiple of 1 1e i t times the amounts billed
to the Architect for such services.
th4MIN apecrrk ,epos a conolranta In Attkta It, It ttoWtod,I
143 FOR REIMBURSABLE EXPENSES, as described in Article S, and any other terns Included In Article 1S as Reim•
butubfe Expenses, a multiple of 1 ' .1 ) times the amounts am-
pended by the Architect, the Architect's employees and consultants in the Interest of the Project.
14A Payments due the Architect and unpaid under this Agreement shall bear interest from the dale payment Is
due at the rate entered below, or In the absence thereof, a1 the legal rate prevailing at the principal place of
business of the Architect,
tower omen ant faa of anteMlr ayaad upon.) 1eC4 per aflnitllB
'Vfufs Inrt and ftgrlrt+tanlr under the Ietlkra' huth in aendinp ACI. soMJar hair and local ronolowo tied,! iae. ,test mhrr a}ulal.on. N low
O..noir', and 4othoteco9 p+intlpal playa of bawor,t the lntalron of lht t.om, and el.ruhert two abed Iht tav+d.ry o+ th,0 ptovluon kw,hc (rylal
Ml.tre shnYld ho, alloiMt, Moth fefpKi to deleln•n. 11Mdd4JNM, M Wow rre,,.rewww wth at "rill" d,felowar. W "JANE 1
14.1 The Ov.-nee and the Architect agree In accordance % ith the Terms and Conditions of this Agreement that;
14.73 IF THE SCOPE of the Pro)ect or of the Architect's Stn ices is changed materially, the amounts of compensation
shall be equitably adjusted.
14.7.2 it THE SERVICES covered by this Agreement have not been completed within
l 14nonths of the date hereof, through no fault of the Architect, the amounts of compensation, fifes and
multiples set lonh herein shall be equitably adjusted,
414 ~CKI Wool elal f noi%; I.I1 if 4G@fa,~U'.: +~+IC~!; Vas fL • a 1, a 17 r Z6.11.
1/ By41.1l97 Tot AA4fRiCA1. Ikllrtl•71 all AAHr40d !'a: N(N Last, A%lWl. A.r. N0141"INC1;'N, Dew Yale.
r •L
t
OTHER CONDMOM OR S"vrCU
11. Delete Article 9 Arbitration in its entirety
2). Upon completion of the Schematic Design Phases and for no '
additional Compensation Joint Venture Architect agrees to
provide:
(a) one 24"x36" colored site plan, floor plan, and
exterior perspective
(b) twelve W x11 color photographs and one 35mmr slide
of each sheet
3). a. Should substantial reuse be made of plans and specifi,„;tions
prepared under this agreement for the 1988-89 Community
Center and the 1990-91 Community Center, the architect shall
be compensated as follows:
' Schematic Design Phase 50% of basic service fes for phase
Design Development Phase 60% of basic service fee for phase
Construction Document Phase 50% of basic service fee for phase
Bidding and Negotiation Phase 100% of basic service fee for phase
Construction Phase 100% of basic service fee for phase
The basic service fee shall be computed at 7.6% of the Project Budget.
3), b. Should the 1988-89 Center and the 1990-91 Center be similar but
' substantially different or altered, the Architect shall be compensated
at the rates of 6% and of their Project Budgets respectively.
4) Delete section 10x4 in its entirety
5) Amend Section 14.6 to provide for an interest rate of
12• per annum
A" ~lfl OMNt1%M MTECT AGREEMENT • TNIRTEEWN t01T$OM • Y fsyf . AiA1. e»»
TIN AMERICAN MssnnlTt Os MM"ItcTs, ins "m YORK AwNuE, M.W„ WAlIMMGTpM. QG X0001
' nh.am ss
Ai" i
f . ~ . ~t~~~i'y°'Sp`•":7;4 7f £~f ~~~''T.Yi^ .f ~.t ~"$~''°1~'3A,~ a +c"i7..9i+!. e
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,
This Agreement entered Into as of the day and year first written above.
OWNER ARCHITECT Joint Yenture
fills at Denton KA~od da=ilan. MACM A
2115 It l gkinne,,_ 3 4A4 center w
280,100,a 21 76201 DmLl3ASI Tx
Ali .--u
BY.-....- Y s P; fAZN94
i e dor# Prosident
Cary Juren Arohiteots i Oo.
222 E McKinney Suite 200
entona U
201
L:s . - -
12 114149" MM* AM ISM TRU19 Of A400101, M MW~ 1 VOP( f AVDAM, NMI N"cTOOMMO W ~e~•
s
a 1
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' Mr Mq!!st
JOINT CDOO AND PARKS ANA RSCRUTIGM
ADNIBORY BOARD
• i ~i
November B, 1006
CDDC MNNURS PRaSaNTs bon Chipman, Sibyl avana, Dante Ferrara, Jo Luker,
LOVie Price, Rosemary Rodriquez and Connie Wells
CDBG MBMBBRB ABSENTS Lucy Campbell and Birdell Carstarphen
STAFF PRSBSNTS Blizabeth Svana, Community Development Managers
Penny Black, Clerks Jett Meyer, Director of Planningl f'
Betty Moxean, Assiitant City Managers Steve Brinkman,'
Director of Parks and Recreations truce Honnington,
supervisor of Building Op':.tlons and Chris Smith, ?p'}
Administrative Assistant ;rt
PARKS AND RSCRBATION
ADVISORY BOARD: Catherine Bell, Mike Campbe,tl, Willis Hudspeth and '
Rita Pilkey
ARCRITICTSs Fred Alexander, President of Ntywood Jordan Mocovan,
Dallas Ino. (WM) and Gary Jurion of Gary Juren
Architects and Company
I. Dinner was served.
If• Steve Brinkman, Director of Parks and Recreation called the smtiag„to„
order ai. ds40 psoo and requested that everyone introduce thowelves•
He gave a summary of'the previous architects" proposals and sxplsinW, ;
that out of thirteen proposals, two architects had been selected by F,
str,ff to present &,$joint venture,' proposal for the future center.:,
Gary Juren spoke briefly about his professional background, and his;
interest in the center. He passed out "joint venture proposals,'
outlining how various factors such as sufficient use of space,
contemporary corns, a consistent designed scheme of building's
techniques and energy efficient buildings, would be considered during
the planning phases of the project. Mr. Juren said a level of
ig
expertlse is what the joint vAture would work towards to make
citizens, clients and the City pleased.
Prod Alexander spoke briefly about his professional background asset his
interest in the centers sNe presented a slide show which showed r.
previously constructed buildings by WM and described the materials, i
used. Nr. Alexander assured the group that the center would not be a
duplication of any previous structures designed by WM.
i S 4, t t;~i' `«-n' a; C k C., , r ~,i;',' e't ''•F-' F r.'i" s '+F ;2~3 , y
♦i vim. _ ~ _ t ~y3,
usaiuEee r 1r , •
November go 1914
The architects said the stoat of responsibility with the joint venture,
wars divided 50/601 HJM will work in the actual documentation of-:Y.
architectural plans. Mrs Juren will, aware** the bidding and
construction phases of the project and because of his proximity to City
Nall process AIA documents for contracts to the City Manager. Alsoo as
agreement on the contract price and charges for future projects or - '
expansion of the center would be mtde within the next 2 days.' Moth r.,
firms believe they can negotiate the best fee possible. They also '
requested a consultants list believing that interaction would be needed,'
to get ideas regarding the Denton Center.
Willie Hudspeth said the structure would have to be designed to
accommodate heavy usage with durable but pleasing materials for areas
like the gym. As an example, he suggested light colors for the gym#
and felt it would " »p the envitonment at a prideful level with
materials being economic and yet as aesthetically pleasing as possible.
Ma. wells asked what time frame would the actual building phase begin.
Mr. Juren said realistically in 15 to 10 months.
Mrs Hudspeth asked if the citizens had been given the opportunity to
give input on the canters plans.
Mss wells replied yes.
Mr. Alexander said the City would be the client that the architectural
firms wet* working for and they shou.d act as a filter for any'ideas#~'•;
suggoi Lions or new plans to be incorporated into the center's present'',
10#000 ago fts proposal. ;
Mrs Brinkman said two public hearings will be scheduled to keep '
everyone updated on the project and advertisements will run notifying `
,i the public of these meeting dates.
Mrs Vetter& asked were there any plans for the parking areas or
security systems to be installed at this point?
Mrs Juren said no actual plans had been drawn although those areas
would be covered in the finsi phases of the plans.,
Mrs Alexander said considerinj that* could be future expansion a type yyls
of 'shield parking#" would be expected whereas the building would be
used as the shield. '
Mrs Juren asked if thenotwers any suggestions on bow or as to how to i'
[M,~f{, T'~, Iyy
get everyone involved in the'bond issue proposal.
Mrs Hudspeth said he'd received positive remarks from many eitisens,t.
t.
about the bond election*
i
~ f5 Mi qa t i ~t +,Y~gt+~a ` ~"1 ~ i t a .:4' ='~.`i + , t y • ~ `°+"4i'h j~'YrN tvS"1+_~ ~ ;..9 71
~
Mina r 4°1 C~ ql
t~ovembec i . Ago$
rap
sib 1'svans►,;.6
Y spoke briefly about the recreation `centers `is the
U114114t. worth nottoplext'!
7120 p.m. Mr. ?$crara left at this time.
Mra. Luker requested that the center not have a flak root.
705 p.m. - Mt. Alexander and Mr. Juren loft at this time.
Break ti
Iii. Connie Nells, CDDG Chairperson was introduced at this time. she aiid
the 20,000 sq. fte proposal had been discussed over a long period of
time with numerous public meetings resulting in the ideas iisted+from`
that proposal. The committee as a whole felt that recreation was not
the sole purpose of the center and they hoped the proposals rii'l~cled a'.
center that would suit the communities needs.
Mrs. pilkey made a motion to accept Gary Juren Architects A co. sad WtN
~ in a joint venture for the an or architectural and engineering designs.
Mr. sudspeth saoonded the motion.
Ms. Mulls moved and asked for a vote of acaptance,'sotion accepted
unanimouslyo the recommendation to city council was scheduled for the 4j
fleet week of December with staff hoping to get a contract approved by
City Council tot the A/s services.
Ms. 6ukcr reminded the group that in the event the bond issue fails the
City grant funds would bs a Call back although everyone should work toy
push the issue individually and it should pass.
r
Mike Campbell said a board was created to support the bond issue and
organisation of getting citisens votes would help tremendously.
Ma. Rodriques said the "no tax increase,' would benefit the passing of
the bond issue and this logo would be placed in all advertisements;
towards the passing of the bond issui.
IV. the meeting was adjourned at~$too p.m.
i
Y 1 q Y.~,
20078 f
^'4`' J :'~'.:~`h''4?e-$..*TS, s',.*n` :.t F. 3 -x ,`,"mss -•::~p.trr "~F<y'Y"Y'^a yY:° „{x.~ss'
47
I
VAIN s December 3 tSAE ,
CITY CWVCIL REPORT FORMAT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECTS Adoption of an ordinance authorizing the City of Denton to
contract with CTIC Associates for cable television
refranchisement consulting services with the amount of the
contract not to exceed $270840.00.
RECOMMENDATION:
Cable Television Board recommends the above action.
SUMMARY:
At the November 19, 1986, City Council meeting, the City Council approved the
cable hoard's recommendation to contract with CTIC Associates for consulting
services relating to the cable television refranchisement process. This is
the follow-up ordinance that is required when contracting for services for an
amount over $10,000.
BACKGROUND:
The City of Denton is in the preliminary stages of conducting procoodings
required by the Cable Communications Policy Act of 1964,
PROGRAMSt DEPARTMENTS OR GROUPS AFFECTED:
r rsm IMPACT:
All consultant fees will be charged to the refranchisement account. The City
anticipates recovering these costs from Sammons Communications by negotiating
for reimbursement during the refranchisement process.
Respactf y subm4 ttedp
f~
L oyd Harrell
City Manager
Prepared byi
Q I.&"' M a
Jul a Moore I
Administrative Analyst
Approve y:
Bil g o
Director of Community Services
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'MINMS
CABLE TV ADVISORY BOARD
NOVEMBER 25, 1986
eRESENT
Judith Abbott
Joseph Fearing
Charles McNeill
Darlene Whitten
ABSENT
Gus Seligmann, Chairperson
STAFF PRESENT
Bill Angelo, Director of Community Services
Julia Moore, Administrative Analyst
GUESTS PRESENT
Dave Ammons of Ammons, Glass and Associates
The Cable Television Advisory Board meeting was called to order by Vice
Chairperson Whitten in a special session at 12:45 P.M. on Tuesday,
November 25, 2986, in the Planning Conference Room of the City of Denton
Municipal Building,
ITEM $1
Staff member Julia Moore advised the board members that Chairperson:
Seligmann had contacted her and suggested two additions to the contract.
First, that a clause should be included in the Engineering Review
section which sppcif.ies that the engineer make an evaluation of the
installation of aboveground pedestal boxes versus underground amplifier
boxes including how this affects reception and service. Second, a
provision needs to be included stating that Harold Horn, President of
CTIC, will personally perform the services listed in all phases of the
contract except where an engineer is required. Me. Whitten stated that
she would like to have all of this apelled out in the contract and then
asked the other board members if they had any other additions for the
contract. There were no other suggestions.
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CAN.C TV ADVISORY BOARD MINUTES
November 25, 1986
Pate 2
ITEM #2
Ms. Whitten then opened a discussion on whether the board should hold
another public hearing. It was suggested that before any more hearings
were scheduled, the board should receive input from other groups such as
the Chamber of Commerce and the universities, once this has been done,
another hearing can be scheduled if it is needed. 9thff was directed to
set up mec;tings with representatives of various civic groups that would
have an interest in cable television service, especially public access.
ITEM #3
Dr. Dave Ammons described the process for conducting the Consumer Market
Survey. He explained that they were in the process of contacting
various sources such as ICMA for information on other surveys that have
been conducted in order to obtain sample survey questions. Input from
the cable board is also needed especially on specific ('isstions that a
board member would like to ask. Dr. Ammons then explained that a rough
draft of the survey questions would be prepared and submitted to the
board for their review. After the survey instrument has been approved,
a random sample of approximately 700 residents will be used to conduct
the questioning.
Bill Angelo then asked the board if there would be any objections to the
cable company submitting questions that they would like to have included
in the survey. The board members decided that this was fine contingent
upon them screening the questions.
Mr. McNeill stated that he would like to include a question concerning
the compatibility of the present cable system with cable ready sets.
Mr. Fearing suggested that full utilization of available channels should
be addressed. He brought up the fact that North Texas State University
and Texas Woman's University both have their own channels but do not use
them on a full time basis. Mr. fearing suggested that the possibility
of the two universities sharing a channel should be looked at. Bill
Angelo brought up the possibility of restructuring the tier system and
that this might reduce the basic cost of cable service.
Ms. Moore then advised Dr. Ammons that she would continue to gather
information concerning what areas needed to be addressed in the survey
and forward the information to him.
17 17, T M a r h t
CABLE TV ADVISORY BOAR: MINUTES
November 25, 1986
Page 3
ITEM 94
The board discussed possible dates for holding the introductory work
session with CTIC and decided on either December 16 or 17.
The meeting adjourned at 1:55 P.M.
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OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Julia Moore, Administrative Analyst
FROM: Debra A. Drayovitch, City Attorney
SUBJECT: CTIC Contract and Ordinance
DATE* December 12, 1986
Pursuant to your request, attached please find a--copy of the
contract and ordinance with CTIC Associates. I incorporated the
changes you requested in your memorandum of November 26 in Art. I,
Secs. 1 and 2a. I have also changed a few "woulds and coulds" to
"will and shall" to conform to contract language. Finally, I
have amended Art. XI "Indemnity" to provide that CTIC will
indemnify the City for its negligent acts. CTIC had proposed
that the City would indemnify CTIC for CTIC's negligence
• excepting gross negligence. The City has never signed an
agreement with such language and I cannot recommend it.
Please have CTIC execute the original contract, which is attached
heretoo I recommend that you forward it today for CTIC to
execute. If they have any problems with the agreement, you
should pull it from the agenda.
The ordinance and copy of the contract are also attached for your
submission to Charlotte for Tuesday's agenda.
Should you have any questions, please advise.
X6 I La4A~-j
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DEER .
DAD:js
c: Lloyd V. Harrell, City Manager
Attachment
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AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND CTIC ASSOCIATES FOR PROFESSIONAL SERVICES; APPROVING THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE
DATE.
THE COUNCIL, OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I$
That the City Council hereby approves and authorizes the
Mayor and City Secretary to execute and attest, respectively,
the agreement between the City of Denton, and CTIC, Associates,
providing for professional services relating to the evaluation
of cable television service under the terms and conl,itions being
contained in said agreement which is attached hereto and made a
part hereof.
SECTION II.
• That the City Council authorizes the expenditure of funds
in the manner and amount as specified in the Agreement.
SECTION III.
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 1986.
CITY OF DE;NTON, TEXAS
ATTEST:
CITY OF DENTON,OTEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
a..
s
7 "14
THE STATE OF TEXAS S AGREEMENT BETWEEN THE CITY OF
COUNTY OF DENTON S DENTON AND CTIC ASSOCIATES
This agreement is entered into this day of
19860 by the City of Denton, Texas
"Mereinafter ra erred
"City"), and CTIC Associates, a for-profit corporation organized
and existing under the laws of the Commonwealth of Virginia,
having its principal place of business at IS00 North Beauregard
Street, Suite 20S, Alexandria, Virginia 22311, (hereinafter
referred to as "CTIC").
ARTICLE I. SERVICES OF CTIC
1. In General. CTIC agrees to perform professional services
in connection with this agreement which will be made on the
basis of CTIC's experience and qualifications and shall repre-
sent CTIC s best judgment as an experienced and qualified
professional. CTIC's services shall include the provision of
analytic and technical advice to the City of Denton, subject to
the terms and conditions of this Agreement.
2. Sco a of Work. CTIC agrees to provide assistance to the
City by per orm n3~g `t`he tasks set forth herein. It is understood
and agreed between the parties that Harold Horn will personally
perform all phases set forth herein except that an engineer may
perform the Engineering Review Services specified herein.
PHASE 1: INTRODUCTORY WORK SESSION
In order to assure that all parties fully understand the
proposed project and its various phases, CTIC will start the
project with an introductory work session with all appropriate
municipal officials.
The session is needed to permit the consultant to quickly
become familiar with all local concerns and specific circum-
stances that might affect the proposed tasks or change the level
of effort initially anticipated for each proposed work phase.
PHASE 2: PERFORMANCE EVALUATION
The objective of this phase is to provide the City with
factual information about the past performance of the cable
operator, and the extent to which it has complied with the terms
of the franchise. CTIC's approach will address the informational
requirements of the Cabie Communications Policy Act of 1984 and
develop much of the technical and operating information through
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on-site visits, Upon receipt of this information CTIC will
undertake the evaluation of Sammons' performance and its
compliance with the Franchise, To the extent appropriate, CTIC
will also be looking for compliance of the predecessor company,
Cox Cable Communications, Inc.
a. Engineering Review of Existing System
The technical review will take into account compliance
with all orea$ of the Franchise, including service, operational
and technical performance standards, line extensions, ordinance
compliance and identification of problem areas. This informa-
tion will be developed by CPIC's senior technical analyst
through an on-site evaluation of the Denton system while he is
determining the causes and extent of any technical or operating
problems that may exist. His report will suggest possible
remedies that may be needed to assure improved reliability and
acceptability of signal quality, and other system improvements
where needed.
The on-site evaluation will include an engineering
appraisal of the system design, quality of received television
signals, whether off-air, microwave, or locally originated, the
possible excessive deterioration of amplifiers, construction
practices, maintenance procedures, and most importantly, the
quality of signals as delivered to subscribers by the system.
The evaluation will also include a report on the merits of the
installation of above ground pedestal boxes as opposed to the
merits of underground amplifier boxes and how each affects cable
reception and quality of service. Other documentation of the
system will be reviewed such as maintenance and repair
procedures and Maps, service orders and complaint logs.
Such information will assist the City in understanding
problems the cable operator may be having and will provids a
factual basis for any negotiations that may be necessary. There
is often a combination of factors both within and beyond the
control c)f a cable operator that affect a system's performance.
CTIC will want representatives of the operator to partici-
pate in the tests and, in addition, requests the. City to have a
representative view the tests. The important aspect of this is
to have an independent witness, especially at tests being made
at specific locations. Once the on-site technical evaluation
has been completed, CTIC's engineer will prepare a written
analysis of the results.
b. Financial Review of Existing System
lie CTIC's examination will determine with the cooperation of
the cable company the following kinds of information;
PAGE 2
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What accounting practices have been utilized and co what
extent have they been consistently followed over the
years? This will include a comparison of the company's
accounting assumptions to industry wide practices regard-
ing such items as rates of depreciation, capitalization
and expensing of costa, determination of capital structure
and amortization of indebtedness.
Now do the operating expenditures compare with industry
norms? Does the system appear from this that to be
efficiently run or are some of the expenditures unusually
high in comparison with similar type cable systems with
similar signal problems and levels of penetration?
What has been the rate of return and what is the
projected rate of return assuming any, proposed rate
increases?
CTIC will be requiring from the operator detailed
financial information on both revenues, and expenditures and the
characteristics and demographics of the system's subscribership.
The operator will be requested to provide a detailed
breakdown of staffing, plant, origination, and administrative
expenses. Specific information on corporate overhead account-
ing, depreciation methods, intercompany interest charges, and
management fees will be requested. Itemization of previous
capital expenditures will also be requested. Income statements,
Balance Sheets, Cash Flow and Sources and Uses of Fund State-
ments will be included in CTIC's requests for information. In
addition, the operator will be requested to provide several
years of historical data in these areas (including those of its
predecessor company, Cox Cable).
Using the information provided by the operator and the
resources of CTIC Associates, CTIC will prepare an evaluation of
the financial performance and operating efficiency of the
operator to date as well as examine the impact on system pro-
fitability an subscriber rates of various degrees of system
enhancement. This analysis will help determine whether the
system is financially capable of supporting modernization
programs. The new Federal Act requires an accurate base of
financial information in order to evaluate the cost impact of
community needs on the ability of the cable operator to earn a
fair rate of return on its investment and the impact of these
costs upon subscriber rates.
PHASE 3: WORK SESSION AND DEVELOPMENT OF RENEWAL PROPOSAL
Once CTIC receives the information from the cable operator
in Phase 2, the technical and financial analysis will be
1
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completed within forty-five (45) daysi, and a comprehensive
written report will be presented to the City at a work session
with appropriate municipal officials.
The purpose of this session will be to discuss CTIC's find-
ings and present its recommendations to the City and to relate
these findings with the community needs identification process
the City will be independently undertaking. This session will
discuss the City's identified needs and reach preliminary
decisions regarding requirements to be made of the cable company
in the City s request for proposals. In addition, this work
session will also focus attention on a revised generic ordinance
which CTIC will prepare for Council consideration, The work
session is intended to develop the basis for an initial draft of
requirements to be included in the City's Request for Proposal
to the cable, company and in a revised generic regulatory
ordinance,
CTIC Associates will work with the City in the development
of this Request for Proposal and the regulatory ordinance. In
addition to the Cityr's statement of needs, the RFP will include
a series of forms which will request a detailed financial pro
f,-trmal, full technical specifications for any system upgrade and
description of planned service improvements. CTIC will assist
. the City with documentation of its needs and desires for future
cable services as needed for inclusion in the RFP document.
PHASE 4: EVALUATION OF PROPOSAL
Once the formal renewal proposal from the company has been
received by the City, CTIC Associates will prepare a detailed
evaluation of the pproposal. This will include an examination of
the extent to which the company is committing itself to improved
performance (if needed), system upgrading (it needed) and the
extent to.which company is meeting community needs, A discussion
of negotiation suggestions and strategy will also be presented.
PHASE S; NEGOTIATION ASSISTANCE
a. Informal Negotiations Option I
Throughout the project CTIC assumes that the City and the
company would initially attempt to use the "informal negotia-
tions" permitted under the new Federal Act (Section 626H). If
negotiations prove to be unsatisfactory for either party, the
more fvrwal process outlined in Section 626(a) through (g) could
be initiated by either the City or the company.
CTIC will participate as a part of the negotiating team
in order that its technical capabilities and negotiation
experience can be readily available. CTIC anticipates in its
PAGE 4
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cost estimate two two-day sessions may be needed to reach
agreement. A public hearing is also anticipated prior to
finalization of any franchise agreement, which is anticipated
would require the consultant's presence in Denton.
b. Form Negotiation Option
If the informal negotiations fail to make progress, the
City or the cable company may resort to formal procedures
outlined in the Cable Communications Policy Act of 19846 If
formal procedures are needed, the needs identification and
system performance evaluation may not need to be repeated if
both activities have been well documented and the public has
been afforded an opportunity to participate. If formal pro-
ceedings and administrative hearings are needed, the City and
CTIC Associates will negotiate the type and amount of assistance
needed at that time.
PHASE 6: PREPARA'T'ION OF FRANCHISING AGREEMENT
Upon conclusion of the informal or formal negotiations, CTIC
will assist the City in the development of the franchising
agreement between the City and the company that will include the
results of the negotiations.
ARTICLE II. AUTHORIZATION FOR CTIC TO OBTAIN
TECHNICAL ASSISTANCE
It is hereby agreed that although the analytic and technical
advice to be provided under the terms of this agreement will be
performed by CTIC, or its employees, CTIC shall have the auth-
ority to retain outside technical assistance to help on this
project as it deems necessary.
ARTICLE III. CITY'S RESPONSIBILITIES
The City's responsibilities in connection with this project
shall be as follows:
1. The City shall provide full information as to the require-
ments for the project.
2. Ms. Julia Mooro, Administrative Assistant, City of Denton,
shall act as the City's representative with respect to the work
to be performed hereunder. Such person shall have complete auth-
ority to transmit instructions, receive information, and inter-
pret and define the City's policies and decisions with respect
to the work covered by this agreement,
PAGE S
t ; ••x, wF, ny . w++s ter!. rA , 4 k?*.R C' ~q x: I: Lre ' ~ t'hH ils,.'c1Cq"`ARTICLE IV. PERIOD OF SERVICE
This agreement shall commence and be effective upon
execution by all parties and shall terminate upon completion of
all work required under the terms and conditions of this agree-
kent unless otherwise terminated in the manner provided below.
ARTICLE V. TERMINATION
Either party shall have the right to terminate this agree
sent by depositing to the other parties by United States first
class mail, return receipt requested, postage prepaid, thirty
(30) days written notice of termination or byy notice personally
delivered to Harold E. Horn, President, CTIC; or Lloyd V.
Harrell, City Manager, City of Denton. A termination notice to
any party shall be addressed to such party at the address set
forth above, unless a different address shall have been specified
as the principal place of business of such party by written
notice to the ocher party, it is further understood and agreed
that should the City terminate this agreement prior to comple-
tion of all work specified in terms and conditions contained
herein, the City shall be liable to pay time and expenses for
work actually completed as of the date of termination of this
agreement.
The City also has the right to change the scope of work by
eliminating tasks or performing certain tasks in-house. The
City must notify CTIC in advance of changes in order to avoid
potential charges for work in progress.
ARTICLE VI. COMPENSATION
CTIC Associates' charges for service are based on an
established rate for professional time plus expenses. The rate
for project manager is $90.00 per hour; for project staff $70.00
to $80.00 per hour for both on-site and in-house professional
time. Travel expenses and printing will be billed at actual
costs.
The following is CTIC's estimate of costs for conducting the
study as outlined above. The overall estimate of $27,840.00
will not be exceeded unless authorized by the City in writing.
PHASE 1: INTRODUCTORY WORK SESSION
Advance Preparation - 4 hrs. 4 $9040 360.00
Conducting work session
in Denton - 8 hrs. 4 $90.00 720.00
PAGE 6
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Airline $3S0100
Car Rental - I day I SS.00 SS100
Hotel 1 day 8 70,00 70600
Meals • 1 day 8 130,00 30.00
Taxi to and from
Airports 6 Misc. 60.00 565.00
Sub-Total Phase 1 $10645.00
PHASE 2: PERFORMANCE EVALUATION
Staff Preparation of Information
Requests of Cable Company
• 8 hrs. 4 $70.00 S60,00
On-site technical evaluation
of system - 30 hrs. 0 $80,00 21400.00
Travel:
Airline $350.00
Car Rental - 3 days a SS.00 16S.00
Hotel - 3 days @ 170.00 210.00
Meals - 3 days 1 $30,00 90.00
Taxi to and from
Airports $ Misc. 60.00 875100
Preparation of Written
Technical Analysis
12 hrs. a $80.00 960.00
Production, typing,
misc* costs 350,00
b, Financial Review of Bxisting
System. Evaluate financial
information sup lied by
company - 40 hrs, 6 $80.00 30200.00
Production, typing,
misc, costs 350100
Sub-Total Phase 2 $80695600
PHASE 3: WORK SESSION AND DEVELOPMENT OF RENEWAL PROPOSAL
Preparation of Report and Developing Recommendations (Coordi-
nating findings of engineering, financial services evaluation
PAGE 7
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reports and community needs assessment)
Report:
development - 16 hrs. ! $90.00 $10440.00
production - 350.00
Prepare multiple
copies - 20 seas 1 $10.00 $ 200.00
Present Workshop
in Donton - 8 hrs. 1 $90.00 720.00
Preparation of RFP and
generic ordinance 1,160.00
Production, Typing, Misc. SOM O
Travel:
Airline $ 350.00
Car Rental - 2 days 1 SS.00 110.00
Note' - 2 days B 70.00 140600
Meals - 2 days 1 30.00 60.00
Taxi to and from Airports $ Misc. 60.00 720.00
Total Phase 3 $60090.00
PHASE 4: 6VALUATiON OF PROPOSAL
Examine Engineering
Information - 24 hrs. @ $80,00 $2,920,00
Financial
Information - 20 hrs. @ $80.00 10600,00
Services
Information - 10 hrs. @ $70,00 700.00
Check overall
coapfiance
with City's
Ri?P $ develop
negotiation
suggestions and
strategy - 12 hrs. 1 $90.00 10080.00
Production of Evaluation Report 350100
Sub-Total Phase 4 $3,650.00
PAGE 8
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PHASE Ss NEGOTIATION ASSISTANCE
(a) Informal Negotiation
(Est. two • two-day sessions)
One session
16 hrs. 4 $90.00 $10440.00
Travel 720.00
Total Est. Cost/Session $2,160.00
Two Sessions $4,320.00
One public hearing (combine
with other scheduled meetings)
Sub-Total Phase 5 $4,320.00
OPTIONAL: (b) Formal Negotiation Session
(optional) Assist City in con-
ducting Administrative proceedings.
(No estimate made at this tide.)
PHASE 6: PREPARATION OF FRANCHISING AGREEMENT
Assist City in Developing Franchise
Agreement
. 2 days I $00.00/hr. $1.440.00
Travel not anticipated
Sub-Total Phase 6 $10440,00
ESTIMATED PROJECT TOTAL
INFORMAL NEGOTIATIONS $270840.00
ARTICLE VII. PAYMENTS
CTIC will bill the City on a monthly basis for services ren-
dered to date and project elements completed to the City's sa'is-
faction. Payment is due, in full, thirty (30) days from the
date of each invoice. Payments made within fifteen (15) days of
invoice date will receive a two (2) percent discount. Accounts
due over sixty (60) days from invoice date will be charged at a
rate of one (1) percent per month for each month or part thereof
overdue to cover finance charges wade to CTIC by its bank.
ARTICLE VIII. INDEPENDENT CONSULTANT
AND CONFLICTS OF INTEREST
It is expressly understood by the City that it will sake any
and all decisions with respect to all actions resulting from
PAGE 9 f:
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1 71-
CTIC studies and that CTIC shall act as an independent consultant
giving advice and recommendations only. CTIC warrants that
neither the corporation nor its officers, directors, or share-
holders now have or shall acquire, receive,' or be promised during
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the term of this agreement any financial interest in any of the
matters about which CTIC shall be making recommendations,
ARTICLE IX. ASSIGNMENT OF AGREEMENT
This agreement shall not be assigned without the prior
written consent of all parties hereto.
ARTICLE X. CONFIDENTIALITY
CTIC shall considor its relationship with the City to be
confidential and will not rolease documents, reports, or work
product to any person other than an authorized a ehft-of the Uty
without the express authorization of fts designated
representative as defined in Article III.
ARTICLE XI. INDEMNIFICATION
It is expressly understood and agreed by the parties that
CTIC agrees to indemnify and hold harmless the City from any and
all damages, loss or liability, cost of expenses arising out of
legal action occasioned by any error, omission or negligent act
of CTIC with regard to the performance of this agreement, and
CTIC will, at its cost and expense, defend and protect the City
against any and all such claims.
ARTICLE XII. MISCELLANEOUS
1. Paragraph Headin&s. The paragraph headings contained in
this agreement are for reference purposes only, and shall not
affect in any way the meaning or interpretation of this
agreement.
2. Entire A reewent. The foregoing constitutes the entire
agreement between the parties and shall not be changed,
modified, amended, extended, terminated, waived, or discharged
except by an instrument in writing signed by the parties hereto.
3. Severabi__l~itYY. If any provision in this agreement is
finally declared inconsistent with any ordinance, statute, or
legal decision, by any court having jurisdiction over this
agreement, such a decision shall apply only to that provision of
this agreement, and CTIC shall have the option of either
terminating this agreement pursuant to Article Y or performing
the aggreement under Arti-le I. CTIC must notify the City of its
decision within ten (10) days from the date that the judicial j
decision becomes final.
PAGE 10
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4. Counterparts. This agreement may be signed in any number
of counterparts with the same effect as if the Signatures to
each such counterparts were upon the same instrument.
IN WITNESS NHRRSOF, the parties have caused this agreement
to be executed on the day and year first abova, written.
CITY OF DENTON, TEXAS CTIC ASSOCIATES, INC.
RAY s MAYOR LD E. HORN$ ENT
ATTEST: ATTEST:
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
9Y:
PAGE 11
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CITY of DENIM MMS alwic owdw i ss f s. noginn y i !!!!MT"M 7tso f
M E M O R. A N D U M
T0: Betty McKean, Assistant City Manager
FROM: Steve Brinkman, Director, Parks and Recreation
DATE: December 12, 1986
SUBJECT: Data Processing/Personnel Agreement
This contract has a modification from the one given to you at
last Tuesday's workshop session, Under Article 2, there has
been a change that allows us additional freedom in getting out
of the lease. The new wording reads:
City Council may choose to terminate this lease with six
months written notice to the Lessor,
This change is being signed off can by the Lessor's
representatives.
Steve Brinkman
MEMO0815
Dwmw Parks and Arerwow / o waft room / *1 ri "imrO
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mnlwxm~
M L M 0 R A N D U M
TO: Betty McKean, Assistant City Manager
FROM: Steve Brinkman, Director, Parks and Recreation
DATE: December 31 1986
SUBJECT: Data Processing/personnel Agreement
The existing Data Processing/Personnel lease agreement between Joan
Cohagen and the City will expire December 31, 1986. As you know, we
have reached a new six year agreement with Ms. Cohagen. This
agreement is different than the past agreement in that we pay one
set monthly fee, no tax increase/adjustment, and no insurance
increase/adjustment. The lease allows Ms. Cohagen a six percent
(6t) cost of living increase the first year and a 5.5 percent annual
increase thereafter for the term of the contract. These increases
are in line with the price index stated in the Statistical Abstract
of the United States 1986 Edition.
We also have done a comparison of ot;3pr rental spaces and have
determined that this new agreement is fair and even lower (cost per
square foot) than many surrounding lease buildings.
LEASE COMPARISON DATA
AS OF AUGUST, 1986
(61465 sq,ft.)
Office Area Monthly Rate/Rate Per. Sq.Ft, Annual Rate
Data Processing/
Personnel Lease Space 51430.65/0.84 $65,167.20
U. S. Post Office
101 E. McKinney 5,365.95/0.83 *64,391,40
~/Ya~o~al ~olal e//~dar~l~o~raar~d 9~tn~r~
Y3yr .w„iy ESVk:.;" ~,~}r. 1-,~°.rr .,r,1Y~al tS^,' #i ?T U t 7g. aa.ya ,y, e k:::E43 ay.-°.r`S u* :w,...
office Area Monthly RatelEate Per 3 .lit. Annual Ratte
Bell Place
500 Bell 8,081.25/1.25 $960975.00
The McKinney Building
522 McKinney 7,046.85/1.09 $84,562.20
Victoria Square
North Locust Street 6,982.20/1.08 $830786.40
Clear Creek
North Elm 50883.15/0.91 $70?597.80
Commerce Centex
W. University Drive 61465.00/1.00 $770580.00
North Elm Center
North Elm Street 9,115.65/1.41 *109,387.80
Av"49e per sa.ft. $1.08
Out new agreement compares with the average lease rates in August,
1986, as follows:
Year Cost Per Square Foot
1987 0.89
1988 0.94
1989 0.99
1990 1.04
1991 1.10
1992 11,16
This new agreement allows us to rent 61465 square feet of lease
space in the 1990's at today's average rental rate for this area.
This is not as cost effective as building but probably the best
lease rate we can necure in Denton at the present time.
e--.)~-
Steve Brinkman
MEN00803
.ns r •_,x s #'i~'.F .d,..f1:: ?i. M; q, ~.r «-;n i~ 17?4
'Y
Q ~ 4 y
TO: MAYOR MID "EreERS OF THE CITY COUNC I L
FAW: LLOYD Vi HARRELLo CITY MANAGER
SUBJECT: Data Processing/Personnel Lease Agreement
~ r.[x~EpIDAT IOK s
The staff recommends that the Council approve the proposed six year lease
between the City of Denton and Joan Cohugen, Rickve Coleman, and Patricia
Penninaton.
This new lease agreement will-allow for a six year lease with a clause
allowing the City to cancel the.agreement earlier if needed without
paying insurance or tax increases.
See back up material.
~anr,ROM4. DEPARY~INTS OR GROUPS FFECT D:
Personnel/Data Processing/Building Operations
lst year - 1690132 68 increase
2nd veer - $73,044 5.58 increase
3rd year - $77,052 5.58 increase
4th year - $81,288 5.58 increase
5th year - $85,752 5.58 increase RASP TFULLY SUBMITTED: I ~ Vy'.A.
6th year - $90,468 5.58 increase
D Ve HAR ELL
CI Y MiAANAGER
PREPARED BYs
Bruce xenington
TITLE Superintendent of. Building Operations
AP
SR'4
I
I
NO.
AN ORDINANCE APPROVING AN AGREEMENT PROVIDING FOR THE LEASE OF
OFFICE SPACE AT 324 BAST MCXINNEY STREET, AND DECLARING AN
EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS!
SECTION 1,
That the City Council of the City of Denton hereby appproves
an office lease agreement between the City and Joan Cohagen,
Rickye Earl Coleman and Patricia Pennington for office pace at
324 East McKinney Street in accordance with the terms thereof,
said agreement being attached hereto.
SECTION II.
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 19866
CITY OF DENTON, TEXAS
ATTEST:
cWtUTTE MEN, CITY SICRETW
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
PAGE 9
,i
• 'i h ' ;y ttt Ss la1V, jYt~'y
P°fm„!'`XT'," - „ W V`,•
:J F
THE STATE OF TEXAS S
COUNTY OF OENTON 4 OFFICE LEASE AGREEMENT
'
This lease &Sreement is made and entered into by and between
the City of Denton, Texas, a municipal corporation located at
215 East McKinney Street, Denton, Texas ("Lessee"), and Joan
Cohagen, an individual residing in Denton County, Texas, and
Ritkye Earl Coleman and Patricia Pennington, Executors of the
Estate of Earl L. Coleman ("Lessor").
In consideration of the mutual covenants and agreements
herein set forth, and other good and valuable consideration,
Lessor does hereby demise and lease to Lessee, and Lessee does
hereby lease from Lessor, office space comprising 6,465 square
feet of usable space, located on the first floor of the building
at 324 East McKinney, Denton, Texas, and hereinafter called the
"leased premises".
ARTICLE 1.
The term of this lease shall commence at 12.01 midnight on
December 31, 1986, and end at 12:00 midnight on December 31,
1992, subject, however, to earlier termination as hereinafter
more particularly described.
Lessor shall on the commencement date of the term of this
lease as hereinabove set forth, place Lessee in quiet possession
of the leased premises and shall secure it in the quiet posses-
310n thereof against all persons lawfully claiming the same
during the entire lease term and any extensions thereof.
ARTICLE 2.
Lessee shall pay Lessor at 318B East Oak Street, Denton,
Texas, as rent for the leased premises, which shall be payable
on the first day of each month, the following amounts:
(a) From December 31, 1986 to December 31, 1987, the amount
of $5,761.00 per month.
(b) From December 31, 1987 to December 31, 19880 the amount
of $6,087.00 per month.
(c) From December 31, 1988 to December 31, 1989, the amount
of $6,421.00 per month.
(d) From December 31, 1989 to December 31, 19940 the amount
of $6,774.00 per month.
(e) From December 31, 1990 to December 31, 1991, the amount
of $7,146.00 per month.
(f} From December 31, 1991 to December 31, 1992, the amount
of $7,539.00 per month.
It is further understood and agreed by and between the
parties hereto that the Lessee may cancel and terminate this
lease upon six (6) months written notice to Lessor.
ARTICLE 3.
Lessee will use the leased premises only for office purposes,
including data processing operations, and restrict their use to
such purposes unless Lessor or Lessor's authorized agent, shall
give Lessee prior written consent for a different-usq,
Lessor q roes that at all times the Lessee and public shall
have the unobstructed use of the area immediately north of and
adjacent to the leased building for the parking of vehicles and,
if requested by Lessor during the lease term, Lessor shall
designate an additional ten (10) parking spaces on the east side
of the leased building for the exclusive use of the Lessee.
ARTICLE 4.
Lessee acknowledges that its acceptance of possession of the
leased premises constitutes a conclusive admission that it has
inspected the leased premises and has found them in good condi-
tion and repair. Lessee agrees to surrender the leasr,d premises
to Lessor at the end of the lease term in the same condition as
when Lessee took possession, allowing for reasonable use and
wear and damages by act of God, including fire and storms,
.:RTICLE S.
Lessee shall pay for all utilities furnished the leased
premises for the term of this lease, including electricity, gas,
water, and telephone services. Usual janitorial and maintenance
services including sweeping and waxing of floors, the cleaning
of windows, replacement of light bulbs or fluorescent tubes
shall be performed by Lessee.
ARTICLE 6.
Lessee shall be responsible for only minor maintenance and
Lessor shall be responsible, at Lessor's expense, for all major
lie
PAGE 2 2
e^ ks r ,a. :,-.e gym.. <i• .fir _A^ >Ya
OVA
WIT 7 77
maintenance of the leased premises so that the premises wi!l
have:
(a) effective waterproofing and weather protection of roof
and exterior walls, including unbroken windows and doors
caused by natural hazards and normal wear;
(b) a satisfactory foundation and structural frame to
maintain the leased premises in condition fit for its
intended use;
(c) building, grounds, and appurtenances at the time of the
commencement of the lease in every part clean sanitary,
and free from all accumulations of debris, h1th, rub-
bish, garbage, rodents, and vermin, and all areas under
control of Lessor thereafter kept in every part clean,
sanitary, and free from all accumulations of debris,
filth, rubbish, garbage, rodents, and vermin.
Lessee will assume responsibility for all repairs resulting
from damages caused by the Lessee and any equipment or remodeling
work performed by the Lessee. Lessee will also assume responsi-
bility for all major plumbing repairs such as, but not limited
to a sewer line collapse. Lessee will also assume all respon-
si~ility for repairs to air conditioning and heating systems for
the leased premises until the termination of this lease.
ARTICLE 7.
Lessee shall not make any alterations, additions, or improve-
ments to the leased premises without the prior written consent
of Lessor. Consent for uonstruz:tural alterations, additions, or
improvements shall not be unreasonably withheld by Lessor.
Lessee shall have the right at all times to erect or install
furniture and fixtures provided that Lessee complies with all
applicable governmental laws, ordinances, and regulations.
Lessee shall have the right to remove at the termination of this
lease such items so installed; however, Lessee shall, prior to
the termination of this loase, repair any damage caused by such
removal.
ARTICLE S.
Partial destruction of the leased premises shall not render
this lease void or voidable, or terminate it except as herein
provided. if the premises are partially destroyed during the
term of this lease, Lessor shall repair them, when such repairs
can be ninde in conformity with local, state, and federal laws and
regulations within sixty (60) days of the partial destruction.
Rent for the premises will be reduced proportionately to the
extent to which the repair operations interfere with the normal
PAGE 3
2 v v~. "k fl'•?.^SiQx°x+Y _~~;y-c,~+.v{~c~ ~1~+i" q~F ' ,.3 ~ ,
f.
conduct of Lessee's business on the premises, If the repairs
cannot be so made within the time limited, Lessor has the option
to sake them within a reasonable time thereafter, not to exceed
thirty (30) days and continue this lease in effect with pro-
portional rent rebate to Lessee as provided for herein. If the
repairs cannot be so made in sixty (60) days and if Lessor does
not elect to make them within the reasonable time thereafter,
either part), hereto has the option to terminate this lease, if
the building in which the leased premises are located is more
than one-third (1/3) destroyed, Lessor may, at Lessor's option,
terminate the lease whether the premises are damaged or not.
ARTICLE 9,
Lessee agrees not to assign or sublease the premises leased,
any part thereof, or any right or privilege connected therewith,
or to allow any other person, except Lessee's agents and
employees, to occupy the premises or any part thereof, without
first obtaining the Lessor's written consent. Lessee's interest
in this lease i% not assignable by operation of low, nor is any
assignment of its interest herein, without Lessor's written
consent,
ARTICLE 10.
Lessor shall pay and fully discharge all taxes, special
assessments, and governmental charges of every character imposed
during the term of this lease on the leased premises or any part
thereof.
ARTICLE I1.
Lessee shall have the right to erect signs oi~ any portion of
the 1-ssed presimes including, but not limited tog the exterior
walls of the building, Lessee shall remove all signs at the
termination of this lease, and shall repair any daiwage and close
any holes caused by such removal,
tRTICLE 11.
Lessee shall permit Lessor and their agents to enter W o
and upon the leased premises at reasonable tines for the purpose
of inspecting the name or for the purpose of maintaining or
making repairs or alterations to the building.
ARTICLE 13.
If during the tern of this lease or any extension or renewal
thereof, all of the leased premises should be taken for any
public or quasi-public use under any governmental law, ordinance,
or regulation, or by right of eminent domain, or should be sold
PAGE
kfi ti 1 1 1 , r i rR ~ ~ U lS ♦1. .j.~ r ,.1r~ r
,
'77771 h,,r „-a-r.+vna
i
1
to the condemning, authority under threat of condemnation, this
lease shall terminate and tSe rent shall be abated c,,Aring the
unexpired portion of this lease, effective as of the Jars of the
taking of said promises by the condemning authority.
If less than all of the leased premises shall be taken for
any ;public or quasi-public use under any governmertal law,
ordinance, or regulation, or by right of eminent Domain, or
should be sold to the condemning authority under threat of
condemnation, this lease shall not terminate but Lessor shall
forthwith at their sole expense, restore and reconstruct the
building and other improvements, situated on the leased
premises, provided such restoration and reconstruction shall
make the same reasonably tenantable and suitable for the uses
for which the premises are leased. The rent payable hereunder
during the unexpired portion: of this lease shall be adjusted
equitably.
Lessor and Lessee shall each be entitled to receive and
retain such separate awards and portions of lump sum awards as
ma)• be allocated to their respective interests in any condem-
nation proceedings. The termination of this lease shall not
affect the right of the respective parties to such awards.
ARTICLE 14.
Lessor will not permit any mechanics' lie: or liens to be
placed upon the premises or the building or improvements thereon
during the term hereof, and in case of the filing of any such
lien Lessor will promptly pay same. If default is payment
thereof shall continue for twenty (20) days after written notice
thereof from Lessee to Lessor, the Lessee shall have the right
and privilege at Lessee's option of paying the same or any
portion thereof without inquiry as to the validity thereof, and
any amounts so paid, including expenses and interest, shalt be
an indebtedr!ess hereunder 'due from Lessor to Leszoo and shall be
repaid to Lessee irmedfately on rendition of bill therefor,
together with i^tsrest at nine (91) percent per annum until
repaid.
ARTICLE 15.
Lessor is expressly given the right to assign any or all of
its interest under the terms of this lease; provided, however,
that Lessor agrees to give thirty (30) days written notice to
Lessee of such assignment including the name and availing address
of such assignee,
ARTICLE 16.
if Lessee shall allow the rent to be in arrears more than
fifteen (15) days after written notice of such delinquency, or
PAGE S
t ; ri •s.,'r ` k i TRIM S k ~7
,
shhbl It ~s iRedefesat faworu*avy ok e;t twon$# aOrth#s-j liilsih"
Le f <ot c thr fM*rda;l#T'Vft'r 4rittelk 't►0* from
e i so, Lessor may at its option, with notice to Lessee, termi-
nite thls and take posse*4w.:-ef said provisos without
being del guilty of any aanh'ir o trespass, 8414 rOlet the
premises :.agsy~::►paaE thereof, 1~ g ►y`= UtMBSftrfhr ,
remainder et saU4 tevol to a party, tarsisdekts y, to Lessor, and.
at such ~W, r►e 1 ~r,t`; .essot+t s p with jt~+ s4iible diligence I
be able to secure. Should Lessor be unable to relet after
reasonable efforts to do soi b ar; ~stlodU such monthly rental be
less than the rental Lessee was obii ated to pay under this
lease of jw , rove%*4 ,*Aor"f~ Oubb,gem ear~* i ~till~
the* . osee all, spar :*he eeaoonrt ,ot a doff teat~► td' ~br:° i
!J
If Ift mot, d*4#Ad*s rIn tk phpfataahc 4r bV` Ay 4
or cp'rdiatoo .,.req rms., to fbe peff esmed "hy ' %eatVe gtai l ;Ii;
sgr}stpdr~4At:, LessaearaTrreleotl~eitheo ohe'+~ ~ene+ ~folirow4~f*~ `.'rziiT ;
(a) After not less than fifteen (15) days notice to Lessor,
defan t by sriY``'~ nectttat , cttoot
end~ ia ; aanneremedy) cn, w t h
s'uch' semady ma
W Iessee otinmt ct#ort tker4ofth •is a l &Us 11
bie f
. ;,,to !Lesooe <a* dibmond#', l sod- ot 4wiluft of %UtV *eII2buisoW: t,
cent, Lessee msyooInt 'adrii.tlon ;to any;- other ritht or
remedy, ,tbfat. Lessee see may have, deduct the costs and
expenses thereof from rent subsequently becoming due
itlreu~er,~_.~~ 4 „'l'n iAi v %1~f -[;}r ,a 31 afro r 1x ~~'liib' ,r
b , i3ect to ,test#saser ~ hi1a '#a' f gI*i SIC- 1#48f,
notice to Lessor of such imtent ion,
thereby terminating this ,tgreemont on the date
1. Wk , . . a i'7 r. ! (14• 4 fy ~:y Fy T. .
1;. vviii ~.~`'i'•tj` 1ff` i~' ~~'S~f Si
Should Lessee, or any of its successors in interest, hold
over t hb , p venal. se s ew _mW pwt- ; the smed a# tier 4"- a tit t 146 r, A90,11
they; tera3jsl#I Skis, leade i'Zinnboas 4thowLft s#O*d 4h Y' eftb"tk
hol Irl, ovort shall ¢ettstaemter and 4O tbast t as W
mon 1y=., #p IeralRt~t, aalr ;t a s yim#a>1lrslgarMr tir'~ttrrr►"reait'yrlrry Il`ls`' bb~ f.c}
they asR;r souse ofs t r tlt#s lbalts l s d#~ty (i~!$,I peter` i
cenb;;, sv`h av#ftf4- The inclusion of the preceding sentence
shall not be construed as Lessor's consent for Lessee to hold jj
over, j'~~`1 .Fiul;~"
I ° t*• I t A ! -S fl I i Y
l t e ` tW e V" ~ f r^ . * srr ~ C s? R1
All notices provided to be given unier th.s agreement shall
ysTTi' 3';~+;w~}~ '~~"3~.;i ; ~`!w '?~.-g. 3 t ~ti`: . > _ rT~';~'~ :,,a_ ;^c u' •vz s-s
a
(h) In the event Lessor or Lessee breathes any of the torus
of this agreement whereby the party not is default employs
attorneys to protect or enforce its right hereunder and prevails,
than the defaulting party agrees to pay the other party reason-
ably attorneys' fees so Incurred by such other party.
(i) Neither Lessor nor Lessee shall be required to perform
any term, condition, or covenant in this lease so long as such
performance is delayed or prevented by force majeure, which shall
mean acts of God, strikes, lockouts, material or labor restric-
tions by any governmental authority, civil riot, floods, and any
other cause not reasonably within the control of Lessor or Lessee
and which, by the exercise of due diligence, Lessor or Lessee is
unable, wholly or in part, to prevent or overcome.
(j) Time is of the essence of this agreement. ,
IN WITNESS WHEREOF, the undersigned Lessor and Lessee hereto
execute this agreement as of the day of , 1986.
CITY OF DENTON, LESSEE .:OAN CONAGEN, RICKYB EARL COLEMAN
$ PATRICIA PENNINGTON$ LESSORS
(3ek2XJ,41 WJZ~,.,,O
LLOYD R
CITY MANAGER
APPROVED AS TO LEGAL FORM: Saito., &41 G~Krta..i
DEBRA ADAM DRAYOVITCH,
CITY ATTORNEY
I CA _jU po_~n
BY: ai =,,A F E N N I N"rG
PAGE g
+ t i fit ; k i
TI _;v'°hs?'j `E T:?7`a4
Will
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ESTABLISHING A
LOADING ZONE LOCATED AT 115 SYCAMORE STREET; PROVIDING FOR A
PENALTY IN THE MAXIMUM AMOUNT OF $200.00 FOR VIOLATIONS THEREOF;
AND PROVIDING FOR AN EFFECTIVE DATES.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS;
SECTION I.
That there is hereby established a loading zonet 115
Sycamore Street beginning 115 feet west of Locust Streeat, and
measuring ten feet by twenty-two feet.
SECTION II.
That when si ns are in place or the pavement is marked
giving notice t ereof, any person who shall violate the
provisions of this ordinance shall be guilty of a misdemeanor
punishable by a fine not exceeding Two Hundred Dollars ($200.00).
SECTION III.
That this ordinance shall become effective fourteen (14)
days from the date of its passage, and the City Secretary is
hereby directed to cause the caption of this ordinance to be
published twice in the Denton Record-Chronicle, the official
newspaper of the City of Denton, Texas, within ten (10) days of
the date of its passage.
PASSED AND APPROVED this the ~ day of , 1986.
RAY STEPHENS,
CITY OF DEr' fON O TEXAS
ATTEST;
CITY OF DENTON,;TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY: Ahw)
w ,x ~.P k'L'LEA t.,..~._t. .a ii~a...dt n'!.~'±,.a 3:..~lt _ ii1 'LY i} ^it •`H,l. ly ' ~Lrr✓.
arm
CM N OAAWM ~ 216 E. MoKlnn•y ~ Denton$ rlixaa ld201
MEMORANDUM
DATE: October 28, 1986
TO: CITIZENS TRAFFIC SAFETY SUPPORT COMMISSION
FROM: Paul Iwuchukwu, Traffic Engineer Associate
SUBJECT: Luaoing tone request by Denton Food Center
Ms. Jean Cooker of the Denton Community Food Canter has
requested a loading tune in front of the building at 115
Sycakvre .
A pickup truck delivers canned goods daily but has problems
finding a clear space near the building to unload. The
volunteer group is made up of mostly women and they have
problems carrying these cases over a lung distance.
Staff investigation has shown that a nand for a loading zone
exists at the food center and recommends approval.
Paul Iwuchukwu
Traffic Engineer Associate
0424E
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page 6 of 9
intersection. The staff looked at the intersection
and recommended yield signs be erected at the
intersection.
STAFF RECOMMENDS: Approval of yield signs
COMMISSIONERS: Doris Chipman made a motion to accept the
staff recommendation. Mike Amadure
seconded the motion. Motion passed
unanimously.
ITEM CONTROL SIGN AT OAK TREE AND PINE OAK:
Joe Thompson presented the request to the
commission. lie said several people have complained
about the intersection in relation to view
obstructions. The staff has investigated the
intersection and recommended yield signs be installed.
STAFF RECOMMENDED: Placement of yield signs
COMMISSIONERS: John Tompkins wade a motion to bccept the
!P ::aff recommendation. Bruce Chamberlain
seconded the motion. Motion passed
unanimously.
ITEM M. 7 LOADING ZONE REQUEST BY DENTON FOOD CENTER:
Paul Iwuchukwu presented the recommendation. Ise
said Ms. Jean Cooker of the Denton Community Food
Center requested a loading zone in front of the
building at 11S Sycamore.
Deliveries are made by volunteer groups made up of
mostly woman and they have had problems carrying
cases of food lung distances when parking is not
available in front of their office.
Staff recommended approval for a loading zone. Staff
furthor recommended that the loading zone fee bo
waived since the center is a nun-profit organization.
Anna Bingham came forward to speak in favor of the
request. She said she made must of the deliveries
and it was impossible to unload supplies there.
STAFF RECOMMENDED: Approval
COMMISSIONERS: Virginia Gallian malde a motion to approve
the request. Gene Gohlke seconded the
■utiun. Motion passed unanimously.
i
"'i~, ' ;a *;t, t { $ lug+~f ..tfs~s 1.,.,....y..:._1.~.°' , 'n. ' '3 a'.. k~t r,. nil,-`.._ '2Ti+." lr, k'Li'44'~M1 tt?.~.~5 yii..
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UT
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XCHERS• _ ass
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ul it 6 J
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sa' 46 ' x.14 R 4 to
IAN ADD. r PROP LOADING ZON
As 011 i SYCAMCiCL
1~ ea' to
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NAP No S
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I 'IA
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N0.
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND ARTHUR YOUNG FOR THE CITY'S MANAGEMENT/SUPERVISION PAY PLAN;
APPROVING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR
AN EFFECTIVE DATE.
NOM, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION ON I*
That the City Council hereby aP4 _ves and authorizes the
Mayor and City Secretary to execute and attest, respectively,
the agreement between the City of Denton, and Arthur Young,
providing for a comprehensive study- to the City's Management/
Supervision Pay Plan under the terms and conditions being
contained in said agreement which is attached hereto and made a
part hereof.
SECTION II.
Tna, the City Council authorizes the expenditure of funds
in the manner and amount as specified in the Agreement.
SECTION III.
That this ordinance shall becowe effective immediately upon
its passage and approval.
PASSED AND APPROVED this the ,day of , 1986.
KAY STIP , RXYOR
CITY OF DENTON, TEXAS
ATTEST:
METKU
CITY OF DENTON, TEXAS
r
APPROVED AS TO LEGAL FORM:
DEBRA kOAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY•
's
x?i
t, ANN
J- - _
THE STATE OF TEXAS AGREEMENT BETWEEN THE CITY
COUNTY OF DENTON I OF DENTON AND ARTHUR YOUNG
The City of Denton, Texas, a Municipal Hoge Rule City
situated in Denton County, Texas, hereinafter called "Cityl',
acting herein by and through Its City Manager and Arthur Young,
hereinafter called "Consultant," hereby mutually agree as
follows:
I. SERVICES TO BE PERFORMED: City hereby retains Consultant
to per orm the ere na ter designated services and Consultant
agrees to perform the following services:
A. Conduct a comprehensive study and provide recommenda-
tions for changes, imi.,,-ovements, and adjustments to
the City's Management/Supervision Pay .,-Plan. The
specific tasks to be completed are as set forth in
Consultants Proposal, dated October 31, 1986,
particularly the Consulting Approach and Work Products
and Expected Benefits Sections, copies of which are
attached hereto and incorporated by reference herein.
In the event of any conflict between said proposal and
this Agreement, the provisions of this Agreement shall
be controlling*
B. Presentation of Comprehensive Report:
Consultant shall conduct periodic meetings with City's
Executive Staff and obtain approval on methodology,
results, and appeals, Consultant shall make a final
presentation to City Manager and to the City Council.
Consultant shall provide twenty (20) copies to the
City Council and Executive Staff of the detailed
written comprehensive report of the study, findings
and recommendations, which shall include the cost of
implementation.
C. Availability of City Resources: City will make
available to consultant the following:
1. Copies of Management/Supervision job specifications
and current organizational charts.
2. Current payroll and position control documents.
3. The Personnel Director will be available Oor
progress update consultations.
4. The time required of each City management /supervi-
sory gployee to complete the position &,l&lysis
questieonnaire (approximately 1-3 hopsrs each) in a
~ '-s~jI J•"r a. ' lIM. *'S ~~R ~vi. ' wr . ~~r` i".~ ~:.TJ ,J ~ Y;: t .4 u i r ' aC 4~`d , '
17,
r . 9P k. Est 't~
~ ~ 4 w
WWO
~b
timely manner and to be available for interview
with consultants, as needed (up to approximately
1-2 hours per interview),
S. Part-tire assistance in the activities described in
Consultantis proposal, including distribution and
collection of position analysis questionnaires,
providing information on the city's current pay
program procedures, scheduling of interviews, etc.
It. T_erl Rf Agreement: Consultant shall commence its ser-
vices on eece-der 17p 1950.
A. Final presentation to the City Manager shall be com-
pleted no later than January 31, 1987. ,.,Presentation
to the City Council shall be completed no later than
February 28, 19870
B. The consultant shall make available consultanio.; time
without additional cost for a three month period to
respond questions regarding implementation of the
project.
C. Deviation from this schedule is acceptable only if
approve.d,by City's Personnel Director.
III. COMPENSATIA TO BE PAID CONTRACTOR:
City agrees to pay
Consultant or t ho services per orie hereunder as follows:
A. Amount of Payment for Services:
City agrees to pay Consultant for the services
performed hereunder as estimated below:
Estimated Estimated
Consultant Mand4y9 Fees
Project Director 4 $ 3,248
Project Staff 21 101584
Paraprofessional Staff 3 668
$14,500
Estimated Ex ensas Estimated Cost
(Includes travel, lodging, meals, I
clerical and coaput5er time): $ 2,500 - $ 30500
TOTAL ESTYMATED PEES AND EXPENSES $179000 - $180000
41
i ~)4 ^~,~yF •N j. .,a . y„t kii'.45 ,1 {Ji ai5 '~.;U„~!'~~s~ ',~'re~ a,.e ~l~..~ T. ~M ~5"y`'f• t~ s.
It Is agreed and under.st*od that the city and Consultant will
make extra efforts to monitor and control the ebovo expertses,
However, regardless of estimates set forth and time and exlensos
expendedo A no event will the total project cost exceed $ 9,o0o
for Consultant's fees and expenses.
B. Dates of Payment: Within 30 days of co&ipletion of
services provided for herein,
3. SUPERVISION ANII CONTR24 BY CITY: It Is mutually under-
stood and agreed b N; and between city and Consultant that
Consultant is an indepoindent Consultant and shall not be deemed
to be or considered an employee of the City of Denton, Texas for
the purposes of income taxo %-ithholdins, bocial security taxes,
vacation or sick leave benefits, worker's Compensation, or any
other City employee benefit. The City shall have supe,vision and
control of Con3ultant and any employee of Con;sultajkt, and it is
expressly understood that Consultant shall Perform the services
hereunder at the direction of and to the satisfaction of the City
Manager of the City of Denton or his designee under this
agreement.
4. SOURCE Of FUNDS: All payments to Consultant under this
agreement are to be Paid by the City from funds appropriated by
0 the City Council for such purposes in the Budget of the City of
Denton,
So INSURANCE: Consultant shall provide at its own cost and
expense worKmen's 'compensation insurance, liability insurance,
and all other insurance necessary to protect Consultant in the
operat-on of Consultant's businesso
6. INDE14NIFICATION: Consultant shall and does hereby agree
to Ind fy and hold harmless fl-e Civy, of Denton frow any and
all damages, loss or of any kihd whatsoever, by roason
of injury or property or third persons occasioned by any error,
omission or negligent act of Consulrant its officers, agents,
employo~es, invites, and other persons lor whom it is legally
liable, with regard to the performance of this Agreement, and
Consultant will, at its cost and expense, defend and protect the
City of Denton against any and all such claims and demands,
7. CANCELLATION: City or Consultant reserves the right to
cancel this Agreement at any time by giving the other party
fourteen (14) days written tictice of its intention vo cancel this
Agreement.
So TERM OF CONTRACT: This Agreement shall commence on the
17th diy of Doccaber, 1986, and end upon the completion of the
project.
A kiV,
EXECUTED this day of 1986.
s
CITY OF DBNTONj TEXAS
BY:
R
ATTEST:
CITY OF DENTON,sTEXAS
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTONp TEXAS
BY:
%.06 W%w
ARTHUR YOUNG
BY:
That Thomas W. Klinck, is hereby designated as the person
to administer the provisions cif this agreement.
DATE CITY MANACER
f CONSULTING APPROACH
Our approach to conducting the management/supervision pay plan
review for the City is based on the factors previously described
and will consist of the following tasks. Each of these tasks
will be discussed with City management and may be nodified as
necessary during project initiation. We would welcome the
opportunity to elaborate on any of the details below and to dis-
cuss other steps which City management personnel believe would
facilitate the effort to achieve the desired project results.
Task i --Job Anallsis `
Based on our initial discussions witb City personnel regarding
your existing fob descriptions, we believe these will be helpful
in providing an initial information base for the job analysis.
M However, we anticipate gathering additional information by means
of a revised position analysis questionnaire and carefully
selected interviews to supplement and verify or revise and update
r the job description information. In conducting the job analysis,
we wills
A. Rayiew Job Descniptionss
We will review the existing job descriptions for
the management/supervision job family as well as
related information including current organization
charts, program descriptions, task lists, and pro-
cedure descriptions, if available. In addition,
we will review the format for the job descriptions
to ensure that it will address the requirements of
the refined/modified job evaluation and classifi-
cation system to be developed.
B. Review and Revise Position Analysis Questionnaires
Your position analysis questionnaire will be
reviewed and revised, if necessary, and then cir-
culated to all employees included in the study
through which they will furnish detailed infor-
nation about their positions.
C. Conduct Follow-Up Interviews:
Based on the information collected tbrough the
questionnaires, we will conduct follow-up inter-
views, as needed, to ensure the accuracy of the
Job analysis information. These interviews will
be used to expand upon information provided in the
questionnaire and to clarify instances where
responses indicate a serious question or concern
about the existing job description; where ini'orma-
tion on the questionnaire prepared by the employee
is incomplete; and where there are unusual situa-
tions such as conflicts of responsibility between
positions or jobs.
D. Prepare/Revise Job Desoriptior-
Based on the information r' lected, wa will devel-
op or refine position uescription ah-d worker
specification information and develop finalized
Job descriptions.
We recommend that supervisors and managers be
given the opportunity to review the Job descrip-
tions in draft form. we will then take their
comments into consideration in preparing thf. final
descriptions.
Task 2 - Conduct the Job Evaluations
The initial objective of this activity will be to review the
existing job classification method as well as other appropriate
methods for examining and determining the relative value of each
Job under study, and recommend or develop the most appropriate
system. As indicated previously, based on our current under-
standing of your requirements, we plan to evaluate the potential
applicability of the Decision Band Method (DBM) of job evaluation
as well as potential modifications to your current point-factor
system before proceeding further.
A. Revise/Refine the Existing Job Evaluation
n
or Develo Method
or Method :and Recommend an Appropriate Alterna>-
Me will analyze your experience with the current
M job evaluation method, review alternative evalu-
ation methods and recommend the method moist
appropriate for the management/supervision job
family. We will examine the extent to which the
current system has beent
- Equitable and consistent in its applicability
to the range of positions evaluated,
- understandable by personnel who will administer
the system as well as other City employees.
- Flexible in responding to changes in City
employment and market conditions.
If appropriate, we will test the results of the
current system in comparison with other systems,
such as DBM.
We will obtain approval of City officials of any
job evaluation and classification system revisions
before proceeding further.
B. Train City Personnel in Job Evaluations
If necessary, we will conduct training for sel-
ected City personnel its the use of the revised job
evaluation system. We suggest the City consider
use of a Job Evaluation Committee composed of key
City employees or officials to obtain a concensus
in the evaluation process. Alternatively, we
could work with the City Director of Personnel or
evaluate all Jobs independently, subject to
approval by City management.
C. Evaluate Jobes
We will then evaluate the jobs in the management/
supervision job family. Results of the job
evaluations will be presented to City management
for review and comment. Questions or concerns
will be discussed and revisions will be made in
the Job evaluations, where appropriate.
D• Develop the Classification Structures
Based on the completed job evaluations, we will
develop and recommend a revised hierarchy of jobs,
if necessary, to serve as the basis for updating
the pay plan.
VON
r.:k 3 - Pap Plan aestructure
i
This step will provide an examination of the City's competitive
position in the local and regional labor markets. A review of
the City's available survey data, as well as other published and
nonpublished survey data available to Arthur Young, will be
performed to obtain quantitative information relative to the
labor market salaries paid for comparable fobs. This information
will be analyzed for use in developing the revised salary
structures. In order to review the compensation survey data, we
'Niil:
A. Assemble and Determine the Survey Data to"Use:
1!e will review existing survey data, benchmarks,
and procedures used by the City for appropriate-
ness and to identify the need, if any, for supple-
mentary survey data. A determination will be made
as to the relevant published survey data to be
used, and the validity of the job matches.
B. Analy%e Survey Data:
The survey data will be adjusted to reflect cur-
rent market trends, summarized and analyzed for
use in revising the classification and salary
structure. The analysis will include a comparison
of survey rates to current salaries paid within
the management[supervision job family within the
City.. .
-Task 4 - Comaensatian Structure
Based on the job evaluations and the results of the analysis of
survey data, we will develop a compensation structure by per-
forming the following steps:
A. Develop Pay Curve(s)s
We will develop pay curves depicting the City's
Pay practices in relation to those of organiza-
tions with which it competes for talent. This
information will assist City management in deter-
miring their policy regarding pay practices and
-
the establishment of the management /supervision
fob tastily coanpsgsation structure.
B. Develop Compensation Structure in Draft Form:
We will develop and recommend the revised compen-
sation structure. As part of this activity we
will analyze and detemnine the cost associated
with implementing Ae recommended structure. A
draft compensation structure will be presented to
City management for their review.
Co Resolve Problems/Differencest
We will work with City personnel and make recom-
mendations to resolve inconsistenciva between the
external market pay rates and -the internal equity
relationships established through` ..Rosition
evaluation.
D. Prepare Compensation Structure in Final Forms
The compensation structure, in final form, will be
presented to City management for approval.
Task S - System Maintenance
As part of our work we will provide a means for maintaining the
revised compensation system. Our work steps will be:
A• Develop Revised Administrative Procedures:
Me ' will develop revises procedures for the
administration- and ongoing maintenance of the
classification and pay plan for management/
M supervisory jobs and train selected City personnel
in the update process.
B• Prepare Final Report:
We will prepare and present our final report of
findings and conclusions and provide related
administrative procedures documentation.
- 10 -
x
I653L G~.~ /
..aL... .
N0.
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND CAMP, DRESSER AND MCKEE FOR ENGINEERING SERVICES; APPROVING
THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN
EFFECTIVE DATE.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION ON Is
That the City Council hereby approves and authorizes the
Mayor and City Secretary to execute and attest, respectively,
the agreement between the City of Denton, and Camp, Dresser and
McKee providing for engineering services ° under' the terms and
conditions being contained in said agreement" which is attached
hereto and made a part hereof..
SECTION II.
That the City Council authorizes the expenditure of funds in
the manner and amount as specified in the Agreement.
SECTION III.
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 1986.
CITY OF DENTON, TEXAS
ATTEST;
CHARLOVE ALLEN, CITY SECRETM
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORMt
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
Byte
.Y4 3.... T. .i 1 :..T Y a hT'. W•
7 ;_7
DATES December 16, 1986
CITY COUNCIL AGENDA ITEM
TOs MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Lloyd V. Harrell, City Manager
SUBJECT: CAPITAL RECOVERY FEES CONSULTING ENGINEERS AGREEMENT
RECOMMENDATION:
The Public Utilities Board recommends approval by the City
Council of attached agreement for Consulting Engineer Services
with Camp, Dresser, and McKee. Part (1), Feasibility study,
only recommended for approval at this time. After Part (1) is
completed and acceptable to City Council, Part (2) Determining
Costs of Capital Recovery Fees will be recommended for City
council approval if Capital Recovery Fees are deemed
necessary,
RUMMARYi
The City Council authorized the Utilities to select a
consultant for studying the feasibility and costs/method for
Capital Recovery Fees for water and wastewater. Camp,
Dresser, and McKee has been selected by the Public Utilities
Board and the agreement is attached for City Council approval.
BACKGROUNrs
On October 1986, the City Council authorized they Utilities
Staff to request proposals from consulting engineers to
(1) determine the feasibility of Capital Recovery Fees and
(2) after approval to proceed by City Council, determine what
cost and how these fees -would be administered for water and
wastewater..
The Utilities Staff obtained six proposals. After a
pre-screening by staff to determine the qualifications of
these consultants, three finalists were interviewed by the
Public Utilities Board at their October 22, 1986, meting. Of
those consultants interviewed, Camp, Dresser, and McKee;
Epsey, Huston and Associatest and CH M Hilll the consulting
firm of Camp, Dresser, and McKee was recommended as the first
choice to negotiate agreement and Epsey, Huston and j
Associates, the second choics.
Capital Recovery Foes
Consulting Engineers Agreement
Page 2
The attached agreement has been negotiated with Camp, Dresser,
and McKee and they are willing and anxious to do this work.
The work will be prepared by a team consisting of one water
and wastewater ergineer, one rate specialist, and one
financial analyst. Time of contract is 60 days Part 1.0 -
Feasibility and 60 days Part 2.0 - Cost and Method for Capital
Recovery Fees).
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED:
Citizens of Denton, Contractors, Engineers, City of Denton
Utilities Department
FISCAL IMPACT:
Camp, Dresser, and McKee is proposing consulting fees of:
Part 1.0 Feasibility Study $17,800
Part 2.0 Determination of Capital
Recovery Fees and Method
of Administration $17,100
TOTAL $34,400
Respectfully Submittedi
t
Prepared by: City Manager
l". tZ;)~
C. David Ham, P.E.
Director of Water/Wastewater Utilities
Approved by:
R. E. Nelson, P.E.
Director of Utilities
EXHIBIT': I - Agreement
11 - Ordinance
THE STATE OF TEXAS 3 ENGINEERING SERVICES AGREEMENT
BETWEEN THE CITY OF DENTON AND
COUNTY OF DENTON i CAMP, DRESSER AND MCKBE
This Agreement is made and entered into this day of
19860 by and between the Citv of Ife"n-ton, here-
na tar re errs to as the "City", and CAMP, DRESSER $ MCKEE,
hereinafter referred to as "ENGINEER".
WHEREAS, the CITY desires the professional services of
ENGINEER to perform engineering services, to serve as the CITY's
professional engineering consultant and advisor in connection
with a Study to evaluate and make recommendations for Capital
Recovery fees for the City as described in Exhibit A, "Scope of
Work"; and,
WHEREAS, the CITY has designated the DIRECTOR OF UTILITIES to
serve as the PROJECT MANAGER for the CITY to direct the day-to-
day activities of the ENGINEER;
NOW, THEREFORE, the CITY and ENGINEER, for the mutual con-
sideration-hereinafter stated, agree and understand as follows:
1. Scope of Services for ENGINEER.
A. The Scope of Services to be rendered under this Agreement
is set forth in Exhibit A, attached to and made a ppart
hereof, relating to an evaluation and recommendations
regarding the adoption of capital recovery fees by the
City of Denton. Any deviations from the attached Scope of
Services, or other provisions of this Agreement, may only
be made by written agreement signed by both pa-ties.
B. If authorised by CITY, additional services related to the
scope of work will be performed by ENGINEER for an addi-
tional professional fee as the parties may subsequently
agree.
II. CITY'S Responsibilities.
A. CITY shall perform the following in a timely manner so as
not to delay the services of ENGINEER;
1. Provide all criteria and full information as to -CITY'S
requirements for the Study and designate in writing a
person with authority to act on CITY'S behalf on all
matters concerning the Study.
~'x•r~e ~r I
2. Furnish to ENGINEER all existing reports and other
available data pertinent to the Study, obtain or
authorize ENGINEER to obtain or provide additional
reports and data as required, and furnish to ENGINEER
services of others required for the performance of
ENGINUR's services hereunder, and ENGINEER shall be
entitled to use and rely upon all such information and
services provided by CITY or others in performing
ENGINEER'S services under this Agreement.
3. Arran a for access to and make all provisions for
ENGINEER to enter upon public and private property as
required for ENGINEER to perform services hereunder.
d. Perform such other functions as are indicated as City's
responsibilities in Exhibit A, "Scope of services".
5. Bear all costs incidental to the requirements of this
Section.
6. Provide labor and safety equipment to inspect or
investigate any existing facilities as required by the
ENGINEER.
III. Period of Service.
A. ENGINEER'S basic services will commence within fifteen
(15) days of the date of this Agreement. The Part 1
Report shall be completed within sixty (60) days from
execution of Agreement; and the Part II Report, if
authorized in writing, shall be completed within sixty
(60) days after authorization to proceed.
B. ENGINEER'S basic services under this Agreement will be
considered complete at the earlier of (1) the date when
Part 11, item 1.9 and Part 11, item 2.7 in the "Scope of
Work" is accepted by CITY or (2) sixty (60) days after
the date when the report is submitted for final
acceptance, and the amount of time, in each case, if
applicable, as may be considered reasonable for obtaining
approval of governmental authorities having jurisdiction
to approve the Study.
C. ENGINEER'S additional services will be performed and
completed within the time period agreed to in writing by
the parties at the time such services are authorized.
IV. Payments to ENGINMR.
A. ENGINEER will undertake the "Scope of Services" under
this Agreement for a fee of $17,800 for Part I and
Page 2
r
$17,100 for Part II. For and in consideration of the work
performed hereunder, CITY agrees to compensate ENGINEER or
a monthly basis. Each month, ENGINEER will submit to
PROJECT MANAGER an invoice for services performed by
ENGINEER during the previous month. The amount invoiced
will be based upon the percentage of completion of work
authorized under this Agreement. Terms of each invoice
shall be net thirty (30) days. Late payments will incur a
late penalty of one percent (14) per month from the
original date of the invoice. Payments in excess of sixty
(60) days late may be cause for a suspension of work.
B. Any required change in the "Scope of Services" will be
accompanied by an adjustment in the fixed cost amount of
this Agreement, subject to mutual consent of CITY and
ENGINEER.
V. Cost Control.
A. Opinions of probable construction cost, financial
evaluations, feasibility studies, economic analyses of
alternate solutions and utilitarian considerations of
operations and maintenance costs prepared by ENGINEER
hereunder will be made on the basis of ENGINEER'S
experience and qualifications and shall represent
ENGINEER'S best judgment as an experienced and qualified
design professional.
VI, General Matters.
A. Neither City nor ENGINEER shall assign, sublet or transfer
any rights under or interest in, including, but without
limitation, monies that may become due or monies that are
due, this Agreement without the written consent of the
other, except to the extent that any assignment, subletting
or transfer is mandated by law or the effect of this limi-
tation may be restricted by law. Unless specifically
stated to the contrary in any written consent to an assign-
ment, no assignment will release or discharge the assignor
from any duty or responsibility under this Agreement.
Nothing contained in this paragraph shall prevent ENGINEER
from employing such independent professional associates,
subcontractors and consultants as ENGINEER may deem appro-
priate to assist in the performance of services hereunder.
B. Nothing under this Agreement shall be construed to give
any rights or benefits in this Agreement to anyone other
than CITY and ENGINEER, and all duties and responsibil-
ities undertaken pursuant to this Agreement will be for
the sole and exclusive benefit of CITY and ENGINEER and
not for the benefit of a,y other party.
Page 3
C. This Agreement (consisting of pages 1 to 9 inclusive),
together with Exhibit "A", constitute the entire Agree-
ment between CITY and ENGINEER and supersede all prior
written or oral understandings. This Agreement may only
be amended, supplemented, modified or cancelled by duly
executed written instrument.
D. In the event the Engineer's PROJECT MANAGER is removed
from the performance of this Agreement, CITY will have
the right to interview and approve or disapprove of his
replacement.
VII. Indemnification.
A. ENGINEER shall and does hereby agree to indemnify and
hold harmless CITY from any and all damages, loss or
liability of any kind whatsoever, by reason of injury or
property or third persons occasioned by any error, omis-
sion or negligent act of ENGINEER, its officers, agents,
employees, invites, and other persons for whom it is
legally liable, with regard to the performance of this
Agreement, and ENGINEER will, at its cost and expense,
defend and protect the CITY against any and all such
claims and demands.
VIII. Mailing Addresses.
A. All notices and communications under this Agreement to
be mailed or delivered to CITY shall be sent to the
address of PROJECT MANAGER as follows, unless and until
ENGINEER is otherwise notified:
Denton Municipal Utilities
21S B. McKinney St.
Denton, TX 76201
ATTNt Robert E. Nelson, P.E.
(817) S66-8230
B. Notices and communications to be mailed or delivered to
ENGINEER shall be sent to the address of ENGINEER as
follows, unless and until PROJECT MANAGER is otherwise
notified:
Camp, Dresser and McKee
Three North Park East, Suite 400
8800 North Central Expressway
Dallas, TX 7S231
ATTN: Roger Hartman
(214) 987-1900
Page 4
C. Any notices and communications required to be given
in writing by one party to the other shall be con-
sidered as having been given to the addressee on the
date the notice or communication is posted by the
sending party.
In WITNESS WHEREOF, the Parties hereto have made and executed
this agreement as of the day and year first above written.
ENGINEER
ATTEST: CAMP, DRESSER AND MCKEE
BY:
CITY OF DENTON, TEXAS
BY:
RAY 9
ATTEST: APPROVHD AS TO LEGAL FORM:
L&I )d L 4 e
it f
CITY OF DENTON,~TEXAS CITY ATM',NBY
Page 5
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u ti.
EXHIBIT "A"
SCOPE OF SERVICES
Purpose of Study: The primary purpose of this study is to eval-
uate the need for a capital recovery fee, as well as alternatives
to such a fee, and their respective impacts on rates and charges
for water and wastewater services. The study consists of two
parts - Part 1 and Part II. If a capital recovery fee is recom-
mended as a result of this initial evaluation, and approved by
the Denton City Council, the second phase of study will develop
such a capital recovery fee. Part II will only be authorized
and payment made therewith if the Denton City Council so directs
by written resolution.
PART I.
160 Preliminary Assessment
1.1 Review existing financial, planning and capital improve-
ment plans and documents.
161,1 Collect existing financial, budget, and planning
reports on existing and proposed City facilities.
1.1.2 Review existing reports and data.
1.1.3 Review existing legal and institutional arrange-
vents and constr-tints. Review City's commitments
to provide water and wastewater services to
surrounding entities.
1.1.4 Consult with City to identify and convene Citizen's
Capital Recovery Fee Advisory Committee, hereafter
referred to as "Committee".
1.2 Project annual operating and maintenance (0$M) and debt
service costs, and system usage through 1995, using
current utility capital improvements programs, planning
reports and studies.
1.2.1 Using data and information from Section 1.1, pro-
ject system costs through 1995.
162.2 Using data and information from Section 1.1, pro-
ject system usage through 1995.
1.2.3 City shall make available all information being'
developed for City's ongoing utility rate study.
Exhibit A/Page i
5, a,f ,F +.a r •,{r • c 7 , 1';-: ' 'ws-:F=.r- 'isas~•.i 7F,,,",.
7
1.3 Establish revenue requirements through 1995 for each
utility system and conduct Workshop No. 1 with Committee.
1.3.1 Distribute Working Paper No. 1 and agenda to Com-
mittee one (1) week prior to Workshop No. 1.
1.3.2 Working Paper No. 1 will be based on work completed
in Sections 1.1 through 1.2.3.
1.3.3 Conduct workshop with Committee.
1.3.4 Review and evaluate workshop comments and results
with City.
1.4 Identify and examine up to three (3) alternative
financing mechanisms for City's capital programs(s).
1.4.1 Alternative financing mechanisms shall include:
a. currant method assigning all debt service to
rate base
b, capital recovery fee method using a range of
estimated fee (high and low)
c, special improvement assessment method for some
proposed capital improvements
144,2 Define "new" and "existing" customers for each
utility.
1.4.3 Evaluation shall include an assessment of impacts
of each of the alternatives from Section 1.4.1 on
rates and charges for water and wastewater service
using City's existing rate and charge structures.
1.S Conduct Workshop No. 2 with Committee.
1.5.1 Distribute Working Paper No. 2 and agenda to
Commit, one (1) week prior to session.
1.S.2 Working Paper No. 2 will be based on work
completed in Sections 1.4 through 1.4.3.
1.5.3 Conduct workshop with Committee.
1.5.4 Review and evaluate workshop comments and results
with City.
1.6 Submit preliminary draft report on feasibility of capital
recovery fee and conduct Workshop No. 3 with Committee.
Exhibit A/Page 2.
.4 ,75R2^'~ j,~.!1 '.yq~a.T sz ..w , _y' et'V : r,:•, k jR X'a ;,igi4~r TB...~ . 5 ~ :r.
2a 31.6.1 Distribute twenty-five (2S) copies of preliminary
draft report to Committee and Public Utilities
Board and City one (1) week prior to session.
1.6.2 Preliminary draft report will include findings and
recommendations regarding the feasibility of a
capital recovery fee.
1.6.3 Conduct workshop with Committee and Public
Utilities Board and City.
1.6.4 Review and evaluate workshop comments and results
with City. Incorporate comments from Board,
Committee and City into final draft report.
1.7 Submit twenty-five (2S) copies of final draft report and
present findings and recommendations to Denton City
Council (Council). Incorporate Council comments into
final report.
1.8 Submit twenty-five (25) copies of final report to City.
PART 11.
2.1 Develop basis for capital recovery fee program.
2.1.1 Identify facilities to be funded by the fee.
2.1.2 Identify legal constraints and guidelines,
regulations, etc., of the Public Utilities
Commission and the Texas Water Commission
regarding such fees.
2.2 Develop capital recovery fee program.
2.2.1 Identify and examine up to three (3) alternative
methods for determining the level for a capital
recovery fee, including:
a. "buy-in" concept
b. marginal cost approach based on recent or near-
term system additions
c. debt service apportionaent concept
2.2.2 Evaluation shall include an assessment of the level
of fee associated with each alternative, projection
of revenues to be collected, and impact on rates
paid by existing customers.
Exhibit A/Page 3
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.yr.: y .wi. v..
is .r v
v
1}W!`<. {vim JA
'"21 Ten
r:
t y. rte' <
xyf ,
2.2.3 Evaluate and recommend unit of measure for to
assessment.
2.2.4 A discussion of the advantages and disadvantages
of each concept will be developed.
2.3 Conduct Workshop No. 4 with Committee.
2.3.1 Distribute Working Paper No. 4 and agenda to
Committee one (1) week prior to session.
2.3.2 Working Paper No. 4 will be based on work
completed in Sections 2.1 through 2.2.4.
2.3.3 Conduct workshop with Committee.
2.3.4 Review and evaluate workshop comments and results
with City.
2.4 Submit preliminary draft report on capital recovery fee
program and conduct Workshop No. S with Committee,
Public Utilities Board and City.
2.4.1 Distribute twenty-five (25) copies of preliminary
draft report to Committee and Public Utilities
Board and City at least one (1) week prior to
session.
2.4.2 Preliminary draft report will include findings and
recommendations regarding the capital recovery fee
program.
2.4.3 Conduct workshop with Committee and Public
Utilities Board and City.
2.4.4 Review and evaluate workshop comments and results
with City. Incorporate comments from Board,
Committee and City into final draft report.
2.S Submit twenty-five (2S) copies of final draft report and
present findings and recommendations to Denton City
Council. Incorporate Council comments into final report.
2.6 Submit twenty-five (2S) copies of final report to City.
Exhibit A/Page 4
Y FF
T3'C{'-~'*2,
. .
t
LAW OPPICCS
MCCALL, PARKHURST & HORTON
MONY M. MCCALL 900 DIAMOND SHAMROCK TOWER JONN e. MCCALL
PAUL i. MORTON
Pets" M. YAP" DALLAS, TEXAS Yssol~asa7 1000"0081
RICHARD C. ►ORTtR MILLA/1o ►ARKMUMT
1boo-
1 21
TNOMAS O, CMARL L. [S KOMON AMA Coos s1A SI~O•sS00 CLAIIt NCt X. CROWL
KeNw OSCHA RlKY~
M. PAULM t' . 14.Ts 0.T[ TsLS0ooical 01A 011S•OTSsi hdOf10081
M. MAUL MAMIN
JOHN W. FAINTLR. JAPA AUSTIN OIIICL
ALAN N. RAYNOR seed ONE AMCMCAN C[NY[R
JJONM[►FRW,tY A A. . L[US LCUSOMCMtI December S, 1996 AUSTIN, TLKAS To1dl.ssfA
TMOMA! K S►JROSON Ad" Cop •It gtl/os
L.t. SINSIOLARA, W
NAROLD T. FLANAOAN
DANNY S. CULV[R I11,
ALFRtp D. JOHNSON
JO[L A. STINCP
Molt N0/0 IN New Yong oNkY
pAUOTIN o1/Id8
00
Charlotte Allen ( u 1~~7}
City Secretary
City of Denton
215 E. McKinney Street
Denton, Texas 76201
Dear Charlottes
Ct'ty of Denton Certificates of Obligation,
Series 1987 $500.000
Enclosed is a copy of the Ordinance authorizing the
issuance of the captioned Certificates.
i plan to be present at the Regular Meeting of the City
Council. on December 16, 1986, and will bring with me the
execution copies, together with the supporting documents.
Sincerely yours,
MCCALL, PARK-HURST & HORTON
Paul B. Horton
PBHik
Enc.
9~
h pie
ORDINANCE NO. 86-
ORDINANCE
AUTHORIzrNG THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON
CERTIFICATES OF OBLIGATION, SERIES 1987, AND APPROVING AND
AUTHORIZING INS.TRUMENTS AND PROCEDURES RELi►TIN6 THERETO
THE STATE OF TEXAS s
COUNTY OF DENTON s
CITY OF DENTON s
WHEREAS, Vernon's Article 2368a.1 permits the City to
issue and sell for cash the Certificates of Obligation herein-
after authorizedt and
WHEREAS, the City has duly caused notice of its intention
to issue the Certificates of Obligation hereinafter authorized
to be published at the times and in the manner required by
Vernon's Article 2368a.1, and no petition has been filed
protesting the issuance thereof.
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS THATs
Section 1. AMOUNT AND PURPOSE OF THE CERTIFICATES. The
certificate or certificates of the City of Denton, Texas (the
"issuer") are hereby authorized to be issued and delivered in
the aggregate principal amount of $500,000, FOR THE PURPOSE OF
PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS
TO BE INCURRED PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF
314PROVEMMS TO THE CITY OF DENTON NUNICIPAL AIRPORT, TO-WITS
ADDITIONAL ACCESS ROADS AND UTILITIES, AND PAYING ALL OR A
PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SER-
VICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL
ADVISORS IN CONNECTION WITH SUCH IMPROVEMENTS AND CERTIFICATES
OF OBLIGATION.
Section 2. DESIGNATION OF THE CERTIFICATES. Each cert-
ificate issued pursuant to this Ordinance shall be designated:
"CITY OF DENTON CERTiFiCAn or OBLIGATION, SERIES 19870, and
initially there shall be issued, sold, and delivered hereunder
a single fully registered certificate, without interest cou-
pons, payable in installments of principal (the "Initial
Certificate"), but the Initial Certificate may be assigned and
transferred and/or converted into and exchanged for a like
aggregate principal amount of fully registered certificates,
without interest coupons, having serial maturities, and in the
denomination or denominations of $5,000 or any integral multi-
ple of $5,000, all in the manner hereinafter provided. The
term "Certificates" as used in this Ordinance shall mean and
include collectively the Initial Certificate and all substitute
certificates exchanged therefor, as well as all other
1
substitute certificates and replacement certificates issued
pursuant hereto, and the term "Certificates" shall mean any of
the Certificates.
Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI-
TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE
INITIAL CERTIFICATE.
(a) The Initial Certificate is hereby authorized to be
issued, sold, and delivered hereunder as a single fully
registered Certificate, without interest coupons, dated JANUARY
1, 1967, in the denomination and aggregate principal amount of
$500000, numbered R-l, payable in annual installments of
principal to the initial registered owner thereof, to-wits
or to the req5teried assignee or ass gness o sa ertificate
or any portion or portions thereof (in each case, the "regis-
tered owner"), with the annual installments of principal of the
initial Certificate to be payable on the dates, respectively,
and in the principal amounts, respectively, stated in the FORM
OF INITIAL CERTIFICATE set forth in this Ordinance.
(b) The Initial Certificate (i) may be prepaid or re-
deemed prior to the respective scheduled due dates of install-
ments of principal thereof, (ii) may be assigned and trans-
ferred, (iii) may be converted and exchanged for other Certifi-
cates, (iv) shall have the characteristics, and (v) shall be
signed and sealed, and the principal of and interest on the
Initial Certificate shall be payable, all as provided, and in
the manner required or indicated, in the FORM OF INITIAL
CERTIFICATE set forth in this Ordinance.
Section 4. INTEREST. The unpaid principal balance of the
initial Certificate shall bear interest from the date of the
Initial Certificate to the respective scheduled due dates, or
to the respective dates of prepayment or redemption, of the
installments of principal of the initial Certificate, and said
interest shall be payable, all in the manner provided and at
the rates and on the dates stated in the FORM OF INITIAL
CERTIFICATE set forth in this Ordinance.
Section 5. FORM OF INITIAL CNRTIFICATRa The form of the
Initial Certificate, including the form of Registration Certif-
icate of the Comptroller of Public Accounts of the State of
Texas to be endorsed on the Initial Certificate, shall be
substantially as followss
2
FORM OF INITIAL CERTIFICATE
NO. R-1 $SO0,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DaENTON
CITY OF DENTON CERTIFICATE OF OBLIGATION
SERIES 1987
THE CITY OF DENTON* in Denton County, Texas (the
"Issuer"), being a political subdivision of the State of Texas,
hereby promises to pay to
or to a rag stere assignee or assignees o this Certificate
or any portion or portions hereof (in each case, the "regis-
tered owner") the aggregate principal amount of
$500,000
(FIVE HUNDRED THOUSAND DOLLARS)
in annual installments of principal due and payable on JULY 1
in each of the years, and in the respective principal asounts,
as set forth in the following schedules
PRINCIPAL PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1988 $250000 1998 $75,000
1969 250000 1999 250000
1990 2+3,000 2000 25,000
1991 250000 2001 230000
1992 25,000 2002 23,000
1993 25,000 2003 25,000
1996 250000 2006 250000
1993 250000 2005 25,000
1996 250000 2006 25,000
1997 250000 2007 25,000
and to pay interest, from the data of this Certificate herein-
after stated, on the balance of each such installment of
principal, respectively, from time to time remaining unpaid, at
the rates as follows:
3
."h
it
per annum on the above installment due in 1988
-~8 per annum on the above installment due in 1969
8 per annum on the above installment due in 1990
._.~8 per annum on the above installment due in 1991
9 per annum on the above installment due in 1992
i per annum on the above installment due in 1993
i per annum on the above installment due in 1994
s per annum an the above installment true in 1995
per annum on the above installment due in 1996
3 per annum on the above installment due in 1997
per annum on the above installment due in 1998
per annum on the above installment due in 1999
8 per annum on the above installment due in 2000
per annum on the above installment due in 2001
per annum on the above installment due in 2002
3 per annum on the above installment due in 2003
t per annum on the above installment due in 2004
8 per annum on the above installment due in 2005
8 per annum on the above installment due in 2006
per annum on the above installment due in 2007
with said interest being payable on JANUARY 1, 1988, and semi-
annually on each JULY 1 and JANUARY 1 thereafter while this
Certificate or any portion hereof is outstanding and unpaid.
THE INSTALL)ENTS OF PRINCIPAL or AND THE INTEREST ON this
Certificate are payable in lawful money of the United States of
America, without exchange or collection charges. The install-
MAU of principal and the interest on this Certificate are
payable to the registered owner hereof through the services of
)SANK DALLAS, NATIONAL ASSOCIATION, DALLAS, TIMAS, which is the
"Paying Agent/Registrar" for this Certificate. Payment of all
principal of and interest on this Certificate shall be made by
the Paying Agent/Registrar to the registered owner hereof on
each principal and/or interest payment date by check or draft,
dated as of such dater drawn by the Paying Agent/Registrar on,
and payable solely from, funds of the Issuer required by the
resolution authorising the issuance of this Certificate (the
"Certificate Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter providedl and
such check or draft shall be sent by the Paying Agent/Registrar
by United States mail, first"class postage prepaid, on each
such principal and/or interest payment date, to the registered
owner hereof, at the address of the registered owner, as it
appeared on the 15th day of the month next preceding each such
date (the "Record Date") on the Registration Books kept by the
Paying Agent/ Registrar, as hereinafter described. The Issuer
covenants with the registered owner of this Certificate that on
or before each principal and/or interest payment date for this
Certificate it will make available to the paying
4
: ".'t r' . ems„ . -+s - -x- e.,~ ti 'A*.~t" ~
Agent/Registrar, from the "Interest and Sinking Fund" created
by the Certificate Ordinance, the amounts required to provide
for the payment, in im0diately available funds, of all princi-
pal of and interest on this Certificate, when due.
I? THE DATE for the payment of the principal of or inter-
eat on this Certificate shall be a Saturday, Sunday, a legal
holiday, or a day on which banking institutions in the City
where the Paying Agent/Registrar is located are authorised by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are
authorised to closet and payment on such date shall have the
same force and effect as if made on the original data payment
was due.
THIS CERTIFICATE has been authorised in accordance with
the Constitution and laws of the State of Texas FOR THE PURPOSE
OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGA-
TIONS TO BE INCURRED PURSUANT TO CONTRACTS FOR THE CONSTRUCTION
OF IMPROVEMENTS TO THE CXTY OF DENTON KUNICIPAL AIRPORT,
TO-WIT: ADDITIONAL ACCESS ROADS AND UTILITIES, AND PAYING ALL
OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL
SERVICES OF ENGINEERING, AWHITZCT8, A'!"!CORNEYS, AND FINANCIAL
ADVISORS IN CONNECTION WITH SUCH IMPROVE MMS AND CERTIFICATES
OF OBLIGATION.
ON JULY 1, 1997, or on any interest payment date there-
after, the unpaid installments of principal of this Certificate
may be prepaid or redeemed prior to their scheduled due dates,
at the option of the Issuere with funds derived from any
available source, as a whole, or in part, and, if in part, the
particular portion of this Certificate to be prepaid or re-
deemed shall be selected and designated by the Issuer (provided
that a portion of this Certificate may be,redeemed only in an
integral multiple of $5,000), at the prepayment or redemption
price of the par or principal amount thereof, plus accrued
interest to the date fixed for prepayment or redemption.
AT LEAST 30 days prior to the data fixed for any such
prepayment or redemption a written notice of such prepayment or
redemption shall be mailed by the Paying Agent/Registrar to the
registered owner hereof. By the date fixed for any ouch
prepayment or redemption due provision shall be made by the
Issuer with the Paying Agent/Registrar for the payment of the
required prepayment or redemption price for this Certificate or
the portion hereof which is to be so prepaid or redeemed, plus
accrued interest thereon to the data fixed for prepayment or
redemption. If such written notice of prepayment or red"Ttion
is given, and if due provision for such payment is made, all as
b
t°x•°K' a5ari'Fa,~ lrer3F a3Yn-. m +L ~•'ss'P.t_•_; V.7,7, Ts ~
I
provided above, this Certificate, or the portion thereof which
is to be so prepaid or redeemed, thereby automatically shall be
treated as prepaid or redeemed prior to its scheduled due date,
and shall not bear interest after the date fixed for its
prepayment or redemption, and shall not be regarded na being
outstanding except for the right of the registered owner to
receive the prepayment or redemption price plus accrued inter-
est to the date fixed for prepayment or redemption from the
Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the
Registrak:3n Books all such prepayments or redemptions of
principal of this Certificate or any portion hereof.
THIS CUTIFICATE, to the extent of the unpaid or unre-
deemed principal balance hereof, or any unpaid and unredeemed
portion hereof in any integral multiple of $50000, may be
assigned by the initial registered owner hereof and shall be
transferred only in the Registration Books or the Issuer kept
by the Paying Agent/Registrar acting in the capacity of regis-
trar for the Certificates, upon the terms and conditions set
forth in the Certificate Ordinance. Among other requirements
for such transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar for cancellation,
together with proper instruments of assignment, in form and
with guarantee of signatures satisfactory to the Paying Agent/-
Registrar, evidencing assignment by the initial registered
owner of this Certificate, or any portion or portions hereof in
any integral multiple of $5,000, to the assignee or assignees
in whose name or names this Certificate or any such portion or
portions hereof is or are to be transferred and registered.
Any instrument or instruments of assignment satisfactory to the
Paying Agent /Registrar, may be used to evidence the assignment
of this Certificate or any such portion or portions hereof by
the initial registered owner hereof. A new certificate or
certificates payable to such assignee or assignees (which then
will be the new registered owner or owners of such new Certifi-
cate or certificates) or to the initial registered owner as to
any portion of this Certificate which is not being assigned and
transferred by the initial registered owner, shall be delivered
by the Paying Agent/Registrar in conversion of and exchange for
this Certificate or any portion or portions hereof, but solely
in the form and manner as provided in the next paragraph hereof
for the conversion and exchange of this Certificate or any
portion hereof. The registered owner of this Certificate shall
be deemed and treater by the Issuer and the Paying Agent/Regis-
trar as the absolute owner hereof for all purposes, including
payment and discharge of liability upon this Certificate to the
extent of such payment, and the Issuer and the paying Agent/-
Registrar shall not be affected by any notice to the contrary.
6
r,.
77 '2714717y... .y`"s:':.m"`,.T..,.3n'°'iF?S7
AS PROVIDED above and in the Certificate Ordinance, this
Certificate, to the extent of the unpaid ar unredeemed princi-
pal balance hereof, may be converted into and exchanged for a
like aggregate principal mount of fully registered certifi-
cates, without interest coupons, payable to the assignee or
assignees duly designated in writing by the initial registered
owner hereof, or to the initial registered owner as to any
portion of this Certificate which is not being assigned and
transferred by the initial registered owner, in any denomina-
tion or denominations in any integral multiple of $50,000
(subject to the requirement hereinafter stated that each
substitute certificate issued in exchange for any portion of
this Certificate shall have a single stated principal maturit
date), upon surrender of this Certificate to the Paying Agent
Registrar for cancellation, all in accordance with the form and
procedures set forth4in the Certificate Ordinance, if this
Certificate or any portion hereof is assigned and transferred
or converted each certificate issued in exchange for any
portion hereof shall have a single stated principal maturity
date corresponding to the due date of the installment of
principal of this Certificate or portion hereof for which the
substitute certificate is being exchanged, and shall bear
interest at the rate applicable to and borne by such install-
ment of principal or portion thereof. Such certificates,
respectively, shall be subject to redemption prior to maturity
on the same dates and for the same prices as the corresponding
installment of principal of this Certificate or portion hereof
for which they are being exchanged. No such certificate shall
be payable in installments, but shall have only one stated
principal maturity date. AS PROVIDED IN THE CERTIFICATE
ORDINANCE, THIS CERTIFICATE IN ITS PRESXNT FORM MAY BE ASSIGNED
AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more
assignees, but the certificates issued and delivered in ex-
change for this Certificate or any portion hereof may be
assigned and transferred, and converted,. subsequently, as
provided in the Certificate Ordinance. The Issuer shall pay
the Paying Agent/Registrar's standard or customary fees and
charges for transferring, converting, and exchanging this
Certificate or any portion thereof, but the one requesting such
transfer, conversion, and exchange shall pay any taxes or
governmental charges required to be paid with respect thereto.
The Paying Agent/Registrar shall not be required to make any
such assignment, conversion, or exchange (i) during the period
commencing with the close of business on any Record Date and
ending with the opening of business on the next following
principal or interest payment date, or, (ii) with respect to
any Certificate or portion thereof called for prepayment or
redemption prior to maturity, within 45 days prior to its
prepayment or redemption date.
7
F
iS'1':S .~4S, Y"3t 'x'-#gs,rw F : "Kw:✓S' :"'"'`~."4,~>c~~ x t 4't4' w.~., ..a[ w 'i... r "~f+.~..i 5,r^~ +y~tr ;~-.ri 1 fir= ~,;/M' „r.^ mf'r"..$
IN THE ZVENT any Paying Agent/Registrar for this Certifi-
cate is changed by the Issuer, resigns, or otherwise ceases to
act as such, the Issuer has covenanted in the Certificate
Ordinance that it promptly will appoint a competent and legally
qualified substitute therefor, and promptly will cause written
notice thereof to be sailed to the registered owner of this
Certificate.
IT IS HEREBY certified, recited, and covenanted that this
Certificate has been duly and validly authorized, issued, and
deliveredt that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or in
the authorization; issuance, and delivery of this Certificate
have been performed, existed, and been done in accordance with
law; that this Certificate is a general obligation of the
Issuer, issued on the full faith and credit thereoft and that
annual ad valorem taxes sufficient to provide for the payment
of the interest on and principal of this Certificate, as such
interest comes due and such principal matures, have been levied
and ordered to be levied against all taxable property in the
Issuer, and have been pledged irrevocably for such payment,
within the limit prescribed by law= and that this Certificate
is additionally secured by and payable from the revenues
derived by the Issuer from the operation of the City of Denton
Municipal Airport.
THE ISSUER has reserved the right to issue other and
additional obligations payable from taxes and/or the airport
revenues described in the paragraph immediately above,
BY BECOMING the registered owner of this Certificate, the
registered owner thereby acknowledges all of the terms and
provisions of the Certificate Ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate
Ordinance is duly recorded and available for inspection in the
official minutes and records of the governing body of the
Issuer, and agrees that the terma and provisions of this
Certificate and the Certificate Ordinance constitute a contract
between the registered owner hereof and the Issuer.
IN WITNESS WBEREOf', the Issuer has caused this Certificate
to be signed with the manual signature of tho Mayor of the
Issuer and countersigned with the manual signature of the City
Secretary of the Issuer, has caused the official seal of the
Issuer to be duly impressed on this Certificate, and has caused
this Certificate to be dated JANUARY 1, 1987.
City ecretary, Mayor,
City of Denton, Texas City of Denton, Texas
(CITY SEAL)
8
,-1 7r-
FORM 48 REGISTATION CERTIFICATE 08 THE
COMPTROLLER OF PUBLIC ACCOUNTBs
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Certificate has been examined,
certified as to validity, and approved by the Attorney General
of the State of Texas, and that this Certificate has been
registered by the Comptroller of Public Accounts of the State
of Texas.
Witness my signature and seal this
Comptroller of-Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
Section 6. ADDITIONAL CHARACTERISTICS OF THE CERTIFI-
CATES. Registration and Transfer. (a) The Issuer shall keep
or cause to Bi-Rept at the principal corporate trust office of
MBANK DALLAS, NATIONAL ASSOCIATION, DALLAS, TEXAS (the "Paying
Agent/Registrar") booki or records of the registration and
transfer of the Certificates (the "Registration Books") , and
the Issuer hereby appoints the Paying Agent/Registrar as ita
registrar and transfer agent to keep such books or records and
make such transfers and registrations under such reasonable
regulations as the Issuer and Paying Agent/Registrar may
prescribes and the Paying Agent/Registrar shall make such
transfers 'cud registrations as herein provided. The Paying
Agent/Registrar shall obtain and record in the Registration
Books the address of the registered owner of each Cartificate
to which payments with respect to the Certificates shall be
mailed, as herein provided= but it shall be the duty of each
registered owner to notify the Paying Agent/Registrar in
writing of the address to which payments shall be mailed, and
such interest payments shall not be mailed unless such notice
has been given. The Issuer shall have the right to inspect the
Registration Books during regular business hours of the Paying
Agent/Registrar, but otherwise the Paying Agent/Registrar shall
keep the Registration Books confidential and, unless otherwise
required by law, shall not permit their inspection by any other
entity. Registration of each Certificate may be transferred in
the Registration Books only upon presentation and surrender of
such Certificate to the Paying Agent/Registrar for transfer of
i
9
s qa-~v. ~'~;'';•q~S.R•''-~:'~g~~~e• F,..~.#,s°~' ',~;,f~•.;w .r 9.,t., fi:v;
registration and cancellation, together with proper written
instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, (i)
evidencing the assignment Of the Certifioate, or any portion-
thereof in any integral multiple of $5,ooO, to the assignee or
assignees thereof, and (ii) the right of such assignee or
assignees to have the certificate or any such portion thereof
registered in the name of such assignee or assignees. Upon
the assignment and transfer of any Certificate or any portion
thereof, a new substitute Certificate or Certificates shall be
issued in conversion and exchange therefor in the manner herein
provided. The Initial Certificate, to the extent of the unpaid
or unredeemed principal balance thereof, may be assigned and
transferred by the initial registered owner thereof once only,
and to one or more assignees designated in writing by the
initial registered owner thereof. All Certificates issued and
delivered in conversion of and exchange for the initial Certif-
icate shall be in any denomination or denominations of any
integ-al multiple of $50000 (subject to the requirement herein-
after stated that each substitute Certificate shall have a
single stated principal maturity date), shall be in the form
prescribed in the FORM OF SUBSTITUTE CERTIFICATE set forth in
this Ordinanc•,.and shall have the characteristics, and may be
assigned, transferred, and converted as hereinafter provided
If the Initial Certificate or any portion thereof is assigned
and transferred or converted the Initial Certificate must be
surrendered to the paying Agent/Registrar for cancellation, and
each Certificate issued in exchange for any portion of the
Initial Certificate shall have a single stated principal
maturity date, and shall not be payable in installmentsp and
each such Certificate shall have a principal maturity date
corresponding to the due date of the installment of principal
or portion thereof for which the substitute Certificate is
being exchanged; and each such Certificate shall bear interest
at the single rate applicable to and borne.by such installment
of principal or portion thereof for which it is bsing ex-
changed. If only a portion of the Initial Certificate is
assigned and transferred, there shall be delivered to and
registered in the name of the initial registered owner subs-
titute Certificates in exchange for the unarsigned balance of
the Initial Certificate in the same manner as if the initial
registered owner were the assignee thereof. If any Certificate
or portion thereof other than the Initial Certificate is
assigned and transferred or converted each Certificate issued
in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Certificate for
which it is exchanged. A form of assignment shall be printed,
or endorsed on each Certificate, excepting the Initial Cert-
ificate, which shall be executed by the registered owner or its
duly authorized attorney or representative to evidence an
10
assignment thereof. Upon surrender of any Certificates or any
portion or portions thereof for transfer of registration, an
authorized representative of the Paying Agent/Registrar shall
,make such transfer in the Registration books, and shall deliver
a new fully registered substitute Certificate or Certificates,
having the characteristics heroin described, payable to such
assignee or assignees (which then will be the registered owner
or owners of such new Certificate or Certificates), or to the
previous registered owner in case only a portion of a Cert-
ifioate is being assigned and transferred, all in conversion of
and exchauge for said assigned Certificate or Certificates or
any portion or portions thereof, in the same form and manner,
and with the same effect, as provided in Section 6(d), below,
for the conversion and exchange of Certificates by any regis-
tered owner of a Certificate. The issuer shall pay the Paying
Agent/Registrar's standard or customary fees and charges for
making such transfer and delivery of a substitute Certificate
or Certificates, but the one requesting such transfer shall pay
any taxes or other governmental charges required to be paid
with respect thereto. The Paying Agent/Registrar shall not be
required to make transfers of registration of any Certificate
or any portion thereof (i) during the period commencing with
the close of business on any Record Date and ending with the
opening of business on the next following principal or interest
payment date, or, (ii) with respect to any Certificate or any
portion thereof called for redemption prior to maturity, within
45 days prior to its redemption data.
(b) Ownershi of Certificates. The entity in whose name
any Certi cats shall registered in the Registration Books
at any time shall be deemed and treated as the absolute owner
thereof for all purposes of this Ordinance, whether or not such
Certificate shall be overdue, and the Issuer and the Paying
Agent/Registrar shall not be affected by any notice to the
contrarys and payment of, or on account of, the principal of,
premium, if any, and interest on any such Certificate shall be
made only to such registered owner, All such payments shall be
valid and effectual to satisfy and discharge the liability upon
such Certificate to the extent of the sum or sums so paid.
(e} Pa gent Certificates and Interest. The Issuer
hereby further appoints the Paying gent g strar to act as
the paying agent for paying the principal of and interest on
the Certificates, and to act as its agent to convert and
exchange or replace Certificates, all as provided in this
Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the Issuer and the Paying
Agent/Registrar with respect to the Certificates, and of all
conversions and exchanges of Certificates, and all replacements
of Certificates, as provided in this ordinance.
12
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(d) COnv rs or Re lacementr Authenti-
c; n. Eac art Cate asn a e vered pursuant to this
3rdinance, to the extent of the unpaid cr unredeemed principal
balance or principal amount tboreof, may, upon surrender of
such Certificate at the principal corporate trust office of the
Paying Agent/Registrar, together with a written request there-
for duly executed by the registered owner or the assignee or
assignees thereof, or its or their duly authorised attorneys or
representatives, with guarantee of signatures satisfactory to
the Paying Agent/Registrar, may, at the option of the regis-
tared owner or such assignee or assignees, as appropriate, be
converted into and exchanged for fully registered certificates,
without interest coupons, in the form prescribed in the FORM OF
SUBSTITUTE CERTIPICATE rat forth in this Ordinance, in the
denomination of $5,000, or any integral multiple of $5,000
(subject to the requirement hereinafter stated that each
substitute Certificate shall have a single stated maturity
date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal
to the unpaid or unredeemed principal balance or principal
amount of any Certificate or Certificates so surrendered, and
payable to the appropriate registered owner, assignee, or
assignees. as the case may be. If the Initial Certificate is
assigned and transferred or converted each substitute Certifi-
cate issued in exchange for any portion of the Initial Certifi-
cate shall have a single stated principal maturity date, and
shall not be payable in installments and each such Certificate
shall have a principal maturity date corresponding to the due
date of the installment of principal or portion thereof for
which.the substitute Certificate is being exchangedo and each
such Certificate shall bear interest at the single rate appli-
cable to and borne by such installment of principal or portion
thereof for which it is being exchanged. If a portion of any
Certificate (other than the initial Certificate) shall be
redeemed prior to its scheduled maturity as provided herein, a
substitute Certificate or Certificates having the same maturity
date, bearing interest at the same rate, in the denomination or
denominations of any integral multiple of $5,000 at the request
of the registered owner, and in aggregate principal amount
equal to the unredeemed portion thereof, will be issued to the
registered owner upon surrender thereof for cancellation. If
any Certificate or portion thereof (other than the Initial
certificate) is assigned and transferred or converted, each
Certificate issued in exchange therefor shall have the same
principal maturity date and bear interest at the same rate ae
the Certificate for which it is being exchanged. Each substi-
tute Certificate shall bear a letter and/or number to distin-
guish it from each other Certificate. The Paying Agent/Regis-
trar shall convert and exchange or replace Certificates as
provided herein, and each fully registered certificate
12
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delivered in conversion of and exchange for or replacement of
any Certificate or portion thereof as permitted or required by
any provision of this Ordinance shall constitute one of the
Certificates for all purposes of this Ordinance, and may again
be converted and exchanged or replaced. It is specifically
provided that any Certificate authenticated in conversion of
and exchange for or replacement of another Certificate on or
prior to the first scheduled Record Date for the Initial
Certificate shall bear interest from the date of the Initial
Certificate, but each substitute Certificate so authenticated
after such first scheduled Record Date shall bear interest from
the interest payment date next preceding the date on which such
substitute Certificate was so authenticated, unless such
Certificate is authenticated after any Record Date but on or
before the next following interest payment date, in which case
it shall bear interest from such next following interest
payment data= provided, however, that if at the time of de-
livery of any substitute Certificate the interest on the
Certificate for which it is being exchanged is due but has not
been paid, then such Certificate shall bear interest from the
date to which such interest has been paid in full. THE INITIAL
CERTIFICATE issued and delivered pursuant to this Ordinance is
not required to be, and shall not be, authenticated by the
Paying Agent/ Registrars but on each substitute Certificate
issued in conversion of and exchange for or replacement of any
Certificate or Certificates issued under this Ordinance there
shall be printed a certificate, in the form substantially as
foilowsl
"PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate has been
issued under the provisions of the Certificate Ordinance
described on the face of this Certificate] and that this
Certificate has been issued in conversion of and exchange for
or replacement of a certificate, certificates, or a portion of
a certificate or certificates of an issue which originally was
approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts of the State
of Texas.
NBANX DALLAS, NATIONAL ASSOCIATION,
DALLAS, TEXAS
Paying Agent/Registrar
Dated By
Au or za Representative"
An authorized representative of the haying Agent/Registrar
shall, before the delivery of any such Certificate, date and
13
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manually sign the above Certificate, and no such Certificate
shall be deemed to be issued or outstanding unless such Certif-
icate is so executed. The Paying Agent /Registrar promptly
shall cancel all Certificates surrendered for conversion and
exchange or replacement, No additional ordinances, orders, or
resolutions need be passed or adopted by the governing body of
the issuer or any other body or person so as to accomplish the
foregoing conversion and exchange or replacement of any Certif-
icate or portion thereof, and the Paying Agent!Registrar shall
provide for the printing, execution, and delivery of the
substitute Certificates in the manner prescribed herein, and
said Certificates shall be of type composition printed on paper
with lithographed or steel engraved borders of customary weight
and strength. pursuant to Vernon's Ann. Tex. Civ. St. Art.
717k-60 and particularly Section 6 thereof, the duty of conver-
sion and exchange or replacement of Certificates as aforesaid
is hereby imposed upon the Paying Agent/Registrar, and, upon
the execution of the above Paying Agent/Registrar's Authentica-
tion Certificate, the converted and exchanged or replaced
Certificate shall be vc.lid, incontestable, and enforceable in
the same manner and with the same effect as the initial Certif-
icate which originally was issued pursuant to this Ordinance,
approved by the Attorney General, and registered by the
Comptroller of Public Accounts. The Issuer shall pay the
Paying Agent/Registrar's standard or customary fees and charges
for transferring, converting, and exchanging any Certificate or
any portion thereof, but the one requesting any such transfer,
conversion, and exchange shall pay any taxes or governmental
charges required to be paid with respect thereto as a condition
precedent to the exercise of such privilege of conversion and
exchange. The Paying Agent/Registrar shall not be required to
make any such conversion and exchange or replacement of Certif-
icates or any portion thereof (i) during the period commencing
with the close of business on any ?Record Date and ending with
the opening of business on the next following principal or
interest payment date, or, (ii) with respect to any Certificate
or portion thereof called for redemption prior to maturity,
within 45 days prior to its redemption date.
(e) I Ge,ral. All Certificates issued in conversion
and exchange or reTacement of any other Certificate or portion
thereof, (i) shall be issued in fully registered form, without
interest coupons, with the principal of and interest on such
Certificates to be payable only to the registered owners
thereof, (,ii) may be redeemed prior to their scheduled maturi-
ties, (iii) may be transferred and assigned, (iv) may be
converted and exchanged for other Certificates, (v) shall have
the characteristics, (vi) shall be signed and sealed, and (vii)
the principal of and interest on the Certificates shall be pay-
able, all as provided, and in the manner required or indicated,
14
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in the FORM OF SUBSTITUTE CERTIFICATE set forth in this Ordi-
nance.
(f) Pa at of Fees and Charges. The Issuer hereby
covenants with the registered owners of the Certificates that
it will (i) pay the standard or customary fees and charges of
the Paying Agent/Registrar for its services with respect to the
payment of the principal of and interest on the Certificates,
when due, and (ii) pay the fees and charges of the Paying
Agent/Registrar for services with respect to the transfer of
registration of Certificates, and with respect to the conver-
sion and exchange of Certificates solely to the extent above
provided in this Ordinance.
(g) Substitute Paying Agent/Registrar. The Issuer
covenants with the registered owners o t e Certificates that
at all times while the Certificates are outstanding the Issuer
will provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as and
perform the services of Paying Agent/Registrar for the Certifi-
cates under this Ordinance, and that the Paying Agent/Registrar
will be one entity. The Issuer reserves the right to, and may,
at its option, change the Paying Agent/Registrar upon not less
than 120 days written notice to the Paying Agent/Registrar, to
be effective not later than 60 days prior to the next principal
or interest payment date after such notice. In the event that
the entity at any time acting as Paying Agent/Registrar (or its
successor by merger, acquisition, or other method) should
resign or otherwise cease to act as such, the issuer covenants
that promptly it will appoint a competent and legally qualified
bank, trust cozrpany, financial institution, or other agency to
act as Paying Agent/Registrar under this Ordinance. Upon any
change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the Regis-
tration Books (or a copy thereof), along with all other perti-
nent books and records relating to the Certificates, to the new
Paying Agent/Registrar designated and appointed by the Issuer.
Upon any change in the Paying Agent/Registrar, th.a Issuer
promptly will cause a written notice thereof to be sent by the
new paying Agent/Registrar to each registered owner of the
Certificates, by United States mail, first-class postage
prepaid, which notice also shall give the address of the new
Paying Agent/Registrar. By accepting the position and perform-
ing as such, each Paying Agent/Registrar shall be deemed to
have agreed to the provisions of this Ordinance, and a cer-
tified copy of this Ordinance shall be delivered to each Paying
Agent/Registrar.
Section 7. FORM OF SUBSTITUTE CERTIFICATES. The form of
all Certificates issued in conversion and exchange or
15
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replacement of any other Certificate or portion thereof,
including the fors of Paying Agent/Registrar's Certificate to
be printed on each of such Certificates, and the Form of
Aasignmsnt to be printed on each of the Certificates, shall be,
respectively, substantially as follows, with such appropriate
variations, omissions, or insertions as a.rv permitted or
required by this ordinance
FORM OF SUBSTITUTE CERTIFICATE
NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT
STATE OF TEXAS $
COUNTY OF DENTON
CITY OF DENTON CERTIFICATE OF OBLIGATION
SERIES 1987
INTEREST RATE MATURITY DATE CUSSIPP N0.
ON THE MATURITY DATE specified above the CITY OF DXNTON,
in Denton County, Texas (the "Issuer"), being a a political
subdivision of the State of Texas, hereby promises to pay to
or to the reg stere assignee hereof (either being hereinafter)
called the "registered owner") the principal amount of
and to pay interest thereon from JANUARY 1, 1987, to the
maturity date specified above, or the date of redemption prior
to maturity, at the interest rate per annum specified above;
with interest being payable on JANUARY If 19880 and semiannual-
ly on each JULY 1 and JANUARY 1 thereafter, except that if the
date of authentication of this Certificate is later than
DECEMBER 15, 1987, such principal amount shall bear interest
from the interest payment date next preceding the date of
authentication, unless such date of authentication is after any
Record Date (hereinafter defined) but on or before the next
following interest payment date, in which case such principal
amount shall bear interest from such next following interest
payment date.
THE PRINCIPAL OF AND INTEREST ON this Certificate are
payable in lawful money of the United States of America,
without exchange or collection charges. The principal of this
Certificate shall be paid to the registered owner hereof upon
presentation and surrender of this Certificate at maturity or
upon the date fixed for its redemption prior to maturity, at
the principal corporate trust office of MBANK DALLAS, NATIONAL
16
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ASSOCIATIONt DALLAS, TUAS, which is the "Paying Agent/Regis-
trar" for this Certificatt. The payment of interest on this
Certificate shall be made by the Paying Agent/Registrar to the
registered owner hereof on each interest payment data by check
or draft, dated as of such interest payment dots, drawn by the
Paying Agent/Registrar on, and payable solely frome funds of
the issuer required by the resolution authorising the issuance
of the Certificates (the "Certificate Ordinance") to be on
deposit with the Paying Agent/Registrar for such purpose as
hereinafter providedt and such check or draft shall be sent by
the Paying Aqent/Registrar by United Slates Nail, first-class
postage prepaid, on each such interest payment data, to the
registered owner hereof, at the address of the registered
owner, as it appeared on the 15th of the month next preceding
each such date (the "Record Date") on the Registration Books
kept by the Paying Agent/Registrars as hereinafter described.
Any accrued interest due upon the redemption of this Certifi-
cate prior to maturity as provided herein shall be paid to the
registered owner at the principal corporate trust office of the
Paying Agent/Registrar upon presentation and surrender of this
Certificate for redemption and payment at the principal corpo-
rate trust office of the Paying Agent/ Registrar. The Issuer
covenants with the registered owner of this Certificate that on
or before each principal payment date, interest payment date,
and accrued interest payment date for this Certificate it will
make available to the paying Agent/Registrar, from the "Inter-
ost and Sinking Fund" created by the Certificate Ordinance, the
amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the
Certificates, when due.
IF THE RATS for the payment of the principal of or inter-
est on this Certificate shall be a Saturday, Sunday, a legal
holiday, or a day on which banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
,shall be the next succeeding day which is not such a Saturday,
Sunday, legal holidays or day on which banking institutions are
authorized to closed and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
THIS CERTIFICATE is one of an issue of Certificates
initially dated JANUARY 1, 1987, authorized in accordance with
the Constitution and laws of the State of Texas in the princ-
ipal amount of $500,0004, FOR THE PURPOSE OF PAYING ALL OR A
PORTION OF THS CITY'S CONTRACTUAL OBLIGATIONS TO BE INCURRED
PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF IMPROVEMENTS TO
THE CITY OF DENTON MUNICIPAL AIRPORT, TO-WITS ADDITIONAL
ACCESS ROADS AND UTILITIES, AND PAYING ALL OR A PORTION OF THE
17
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CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OP ENGINEER-
ING, ARCHITECTS, ATTORNEYS, AIM FINANCIAL AMSORB IN CONNEC-
TION WITH SUCH IMPROVEMENTS AND CERTIFICATES OF OBLIGATION.
ON JULY 1, 19970 or on any interest payment date there-
after, the Certificates of this Series may be redeemed prior to
their scheduled maturities, at the option of the Issuer, with
funds derived from any available and lawful source, as a whole,
or in part, and, if in part, the particular Certificates, or
portions thereof, to be redeemed shall be selected and desig-
nated by the Issuer (provided that a portion of a Certificate
may be redeemed only in an integral multiple of $5,000), at the
redemption price of the par or principal amount thereof, plus
accrued interest to the date fixed for redemption.
AT LEAST 30 days prior to the date fixed for any redemp-
tion of Certificates or portions thereof prior to maturity a
written notice of such redemption shall be published once in a
financial publication, journal, or reporter of general circu-
lation among securities dealers in The City of New York, New
York (including, but not limited to, The Certificate Buyer and
The Wall Street Journal), or in the State of Texas (including,
but not limited to, The 'taxes Certificate Reporter). Such
notice alao shall be sent by the Paying Agent/Registrar by
United Stater mail, first-class postage prepaid, not less than
30 days prior to the date fixed for any such redemption, to the
registered owner of each Certificate to be redeemed at itfi
address as it appeared on the 45th day prior to such redemption
date; provided, however, that the failure to send, mail, or
receive such notice, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effectiveness
of the proceedings for the redemption of any Certificate, and
it is hereby specifically provided that the publication of such
notice as required above shall be the only notice actually
required in connection with or as a prerequisite to the redemp-
tion of any Certificates or portions thereof. By the date
fixed for any such redemption due provision shall be made with
the Paying Agent/Registrar for the payment of the required
redemption price for the Certificates or portions thereof which
are to be so redeemed, plus accrued interest thereon to the
date fixed for redemption. If such written notice of redemp-
tion is published and if due provision for such payment is
made, all as provided above, the Certificates or portions
thereof which are to be so redeemed thereby automatically shall
be treated as redeemed prior to their scheduled maturities, and
they shall. not bear interest after the date fixed for redemp-
tion, and they shall not be regarded as being outstanding
except for the right of the registered owner to receive the
redemption price plus accrued interest from the Paying Agent/-
Registrar out of the funds provided for such payment. If a
18
11 17w- L
portion of any Certificate shall be redeemed a substitute
Certificate or Certificates having the sane maturity date,
bearing interest at the same rate, in any denomination or
denominations is any integral multiple of $5,00o, at the
written request of the registered owner, and in aggregate
principal amount equal to the unredeemed portion thereof, will
be issued to the registered owner upon the surrender thereof
for cancellation, at the expense of the Issuer, all as provided
in the Certificate Ordinance.
THIS CXRTIrICATE OR ANY PORTION OR PORTIONS HMMoF IN ANY
INTZQRAL MULTIPLE OF 85,000 may be assigned and shall be trans-
ferred only in the Registration Books of the Issuer kept by the
Paying Agent/Registrar acting in the capacity of registrar for
the Certificates, upon the terms *M conditions set forth in
the Certificate Ordinance. Among other requirements for such
assignment and transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar, together with proper
instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, evidenc-
ing assignment of this Certificate or any portion or portions
hereof in any integral multiple of $5,000 to the assignee or
assignees in whose name or names this Certificate or any such
portion or portions hereof is or are to be transferred and
registered. The farm of Assignment printed or endorsed on this
Certificate shall he executed by the registered owner or its
duly authorixed attorney or representative* to evidence the
assignment hereof. A new Certificate or Certificates payable
to such assignee or assignees (which then will be the new
registered owner or owners of such new Certificate or Certifi-
cates), or to the previous registered owner in the case of the
assignment and transfer of only a portion of this Certificate,
may be delivered by the Paying Agent/Registrar in conversion of
and exchange fa this Certificate, all in the form arl manner
as provided in the next paragraph hereof for the conversion and
exchange of other Certificates. The Issuer shall pay the
Paying Agent/Registrar's standard or customary fees and charges
for ranking such transfer, but the une requesting such transfer
shall pay any taxes or other governmental charges required to
be paid with respect thereto. The Paying Agent/Registrar shall
not be required to make transfers of registration of this
Certificate or any portion hereof M during the period com-
mencing with the close of business on any Record Date and
ending with the opening of business on the next following
principal or interest payment date, or, (ii) with respect to
any Certificate or any portion thereof called for redemption
prior to maturity, within 45 days prior to its redmption date.
The registered owner of this Certificate shall be deemed and
treated by the Issuer and the Paying Agent/Registrar as the
absolute owner hereof for all purposes, including payment and
19 J
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discharge of liability upon this Certificate to the extent of
such payment, and the Issuer and the Paying Agent/Registrar
shall not be affected by any notice to the contrary.
ALL CERTIYICATES Or THIS SERIES are issuable solely as
fully registered certificates, without interest coupons, in the
denomination of any integral multiple of ;5,000. As provided
in the Certificate Ordinance, this Certificate, or any unre-
deemed portion hereof, may, at the request of the registered
owner or the assignee or assignees hereof, be converted into
and exchanged for a like aggregate principal amount of fully
registered certificates, without interest coupons, payable to
the appropriate registered owner, assignee, or assignees, as
the case may be, having the same maturity date, and bearing
interest at the same rate, in any denomination or denominations
in any integral multiple of $5,000 as requested in writing by
the appropriate registered owner, assignee, or assignees, as
the case may be, upon surrender of this Certificate to the
Paying Agent/Registrar for cancellation, all in accordance with
the form and procedures not forth in the Certificate Ordinance.
The issuer shall pay the Paying Agent/Registrar's standard or
customary fees and charges for transferring, converting, and
exchanging any Certificate or any portion thereof, but the one
requesting such transfer, conversion, and exchange shall pay
any taxes or governmental charges required to be paid with
respect thereto as a condition precedent to the exercise of
such privilege of conversion and exchange. The Paying Agent/-
Registrar shall not be required to make any such conversion and
exchange (i) during the period commencing with the close of
business on any Recore Date and ending with the opening of
business on the next following principal or interest payment
date, or, (ii) with respect to any Certificate or portion
thereof called for redemption prior to maturity, within 45 days
prior to its redemption date.
IN THE EVENT any Paying Agent/Registrar for the Certifi-
cates is changed by the issuer, resigns, or otherwise ceases to
act as such, the issuer has covenanted in the Certificate
Ordinance that it promptly will appoint a competent and legally
qualified substitute therefor, and promptly will cause written
notice thereof to be mailed to the registered owners of the
Certificates.
IT IS HERa8Y certified, recited, and covenanted that this
Certificate has boon duly and validly authorized, issued, and
deliveredi that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or in
the authorization, issuance, and delivery of this Certificate
have been performed, existed, and been done in accordance with
law; that this Certificate iE a general obligation of the
20
57
Issuer, issued on the full faith and credit thereofi and that
annual ad valorem taxes sufficient to provide for the payment
of the interest on and principal of this certificates as such
interest comes due and such principal matures, have been levied
and ordered to be levied against all taxable property in the
issuer, and have been pledged irrevocably for such payment,
within the limit prescribed by laws and that this Certificate
is additionally secured by and payable from the revenues
derived by the Issuer from the operation of the City of Denton
Municipal Airport.
THE ISSUER has reserved the right to issue other and
additional obligations payable from taxes and/or the airport
revenues described in the paragraph immediately above.
BY BECOMING the registered owner of this Certificate, the
registered owner thereby acknowledges all of the terms and
provisions of the Certificate ordinances agrees to be bound by
such terms and provisions, acknowledges that the Certificate
ordinance is duly recorded and available for inspection in the
official minutes and records of the governing body of the
Issuer, and agrees that the terms and provisions of this
Certificate and-the Certificate Ordinance constitute a contract
between each registered owner hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Certificate
to be signed with the facsimile signature of the Mayor of the
Issuer and countersigned with the facsimile signature of the
City Secretary of the Issuer, and has caused the official seal
of the Issuer to be duly impressed, or placed in facsimiles on
this Certificate,
ifacsimile signature} (facsimile signature)
'C'ity Secretary, mayor,
City of Denton, Texas City of Denton, Texas
(CITY SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT'/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate has been
issued under the provisions of the Certificate Ordinance
described on the face of this Certificates and that this
Certificate has been issued in conversion of and exchange for
or replacement of a certificate, certificates, or a portion of
a certificate or certificates of an issue which originally was
approved by the Attorney General of the State of Texas and
21
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registered by the Comptroller of Public Accounts of the State
of Texas.
MBANX DALLAS, NATIONAL ASSOCIATION,
DALLASo TEXAS
Paying Agent/Registrar
Hated By
Author izzeid presentat w
FORM OF Afij„jC~N_,,M~NT s
ASSIGNMENT
FOR VALUE RECLIVED, the undersigned registered owner of
this Certificate, or duly authorized representative or attorney
thereof, hereby a4signs this Certificate to
(Assignee's social (print or typewr t• Assignee's name an
Security or Taxpayer address, including zip code)
Identification Number)
an hereby irrevocably constitutes an appoints
attorney to transfer the registration o this, ert cats on
the Paying Agent/Registrar's Registration Books with full power
of substitution in the premises.
Dateds
Signature Guaranteeds
NOTICE: This signature must be Registered Owner
wuaranteed by a member of the NOTICES This signature must
New York Stock Exchange or a correspond with the name of
commercial bank or trust the Registered owner appear-
company, ing on the face of this Cer-
tificate.
Section 8. TAX LEVY. A special Interest and Sinking Fund
(the *Interest and Sinking Fund") is hereby created solely for
the benefit of the Certificates, and the Interest and Sinking
Fund shall be established and maintained by the Issuer at an
official depository bank of the Issuer. The Interest and
Sinking Fund shall be kept separate and apart from all other
22
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funds and accounts of the Issuer, and shall be used only for
paying the interest on and principal of the Certificates. All
ad valorem taxes levied and collected for and on account of the
Certificates shall be deposited, as collected, to the credit of
the Interest and sinking Fund. During each year while any of
the Certificates or interest thereon are outstanding and
unpaid, the governing body of the Issuer shall compute and
ascertain a rate and amount of ad valorem tax which will be
sufficient to raise and produce the money required to pay the
interest on the Certificates as such interest becomes due, and
to provide and maintain a sinking fund adequate to pay the
principal of its Certificates as such principal matur-..4 (but
never less than Z* of the original principal amount of the
Certificates as a sinking roved eatax ch year)l ndsaid i tax shall
be based on the latest app
full allowance being made for tax delinquencies and thn cost of
tax collection. Said rate and amount of ad valorem tax is
hereby levied, and is hereby ordered to be levied, against all
taxable property in the Issuer for each year while any of the
Certificates or interest thereon are outstanding and unpatdi
and said tax shall be assessed and collected each such year and
deposited to the credit of the aforesaid Interest and Sinking
Fund. Said ad valorem taxes sufficient to provide for the
payment of the interest on and principal of the Certificates,
as such interest comes due and such principal matures, are
hereby pledged for such payment, within the limit prescribed by
law.
Section 9. PLEDGE OF ADDITIONAL REVENUES. The Certifi-
cates additionally shall be payable from and secured by the
revenues derived by the Issuer from the operation of the City
of Denton Municipal Airpyurt. The Issuer shall deposit to the
creditoof the Interest and Sinking Fund from the aforesaid
revenues and the ad valorem taxes collected pursuant to Section
8 of this Ordinance, the amounts that will be sufficient to pay
the principal of and interest on the Certificates when due. To
the extent that said revenues actually are on deposit in the
Interest and Sinking Fund in advance of the time when ad
valorem taxes are scheduled to be levied for any year, then the
amount of such taxes which otherwise would have been required
to be levied pursuant to Section S may be reduced to the extent
and by the amount of the revenues then on deposit in the
Interest and Sinking Fund. The Issuer reserves the right to
issue other and additional obligations payable from taxes
and/or the aforesaid airport revenues.
Section 10. DEFEASANCE OF CXRTIFICATBS. (a) Any Certif-
icate and the interest thereon shall be deemed to be paid,
retired, and no longer outstanding (a "Defeased Certificate")
i 23
h_ ` ~ gA` k K^`t'j,~:'Y(' *'Tf .~°F'+3i ; Y" v~a-•c : ~ ayiT S •'t r'r~. ~ ` s}°ay_ ~k ` F" ..r t+y ~t -n-r--*
al's
Within the Moaning of this Ordinance, except to the extent
provided in subsection (d) of this Election, when payment of the
principal of such Certificate, plus interest thereon to the due
date (whether such doe dste be by reason of maturity, upon
redemption, or otherwise) either (i) shall have been made or
caused to be made in accordance with the terms thereof (inc-
lading the giving of any required notice of redemption), or
(ii) shall have been provided for on or before such due date by
irrevocably depositing with or making available to the paying
Agent/Registrar for such payment (1) lawful money of the United
States of America sufficient to wake such payment or (2)
Government Obligations which mature as to principal and inter-
est in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money to
provide for such payment, and when proper arrangements have
been made by the issuer with the Paying Agent/Registrar for the
payment of its services until all Defeased Certificates shall
have become due and payable. At such time as a Certificate
shall be deemed to be a Dafeased Certificate hereunder, as
aforesaid, such Certificate and the interest thereon shall no
longer be secured by, payable farom, or entitled to the benefits
of, the ad valorem taxes herein levied and pledged as provided
in this Ordinance, and such principal and interest shall be
payable solely from such money or Government obligations,
(b) Any moneys so deposited with the Paying Agent/Regis-
trar may at the written direction of the issuer also be in-
v*sted in Government obligations, maturing in the amounts and
times as hereinbefore set forth, and all income from such
Government Obligations received by the Paying Agent/Registrar
which is not required for the payment of the Certificates and
interest thereon, with respect to which such money has been so
deposited, shall be turned over to the Issuer, or deposited as
directed in writing by the issuer.
(c) The term "Government Obligations" as used in this
Section shall mean direct obligations of the United States of
America, including obligations the principal of and interest on
which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, which may be in
book-entry form.
(d) Until all Defeased Certificates shalt have become due
and payable, the Paying Agent/Registrar shall perform the
services of Paying Agent/Registrar for such Defeased Certifi-
cates the same as if they had not been defessed, and the Issuer
shall make proper arranganats to provide and pay for such
services as required by this Ordinance.
24
r,
Section He DAMA=j MUTILATED, LOST, STOLEN, OR DE-
STROYED CERTIPICATEB. (a) e t c • t Certificates. In the
event any outstanding Certificate to amagf ,ted, lost,
stolen, or destroyed, the Paying Agent/Rogistrar shall cause to
be printed, executed, and delivered, a new certificate of the
same principal amount, maturity, and interest rate, as the
damaged, mutilatad, lost, stolen, or destroyed Certificate, in
replacement for such Certificate in the manner hereinafter
provided.
(b) AgglicoUgn, for At Ce t f ca es. Applica-
tion for replacement o damaged, mut ate , os , stolen, or
destroyed Certificates shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of loss,
theft, or destruction of a Certificate, the registered owner
applying for a replacement certificate shall furnish to the
Issuer and to the Paying Agent/Registrar such security or
indemnity as may be required by them to save each of them
harmless from any loss or damage with respect thereto. Also,
in every case of loss, theft, or destruction of a Certificate,
the registered owner shall furnish to the Issuer and the Paying
Agent/Registrar evidence to their satisfaction of the loss,
theft, or destruction of such Certificate, as the case may be.
In every case of damage or mutilation of a Certificate, the
registered owner shall surrender to the Paying Agent/Registrar
for cancellation the Certificate so damaged or mutilated.
(c) No Defaul Occurred. Notwithstanding the foregoing
provisions 51 ER'Is section, in the event of any such Certifi-
cate shall have matured, and no default has occurred which is
then continuing in the payment of the principal of, redemption
premium, if any, or interest on the Certificate, the Issuer may
authorize the payment of the tame (without surrender thereof
except in the case of a damaged or mutilated Certificate)
instead of issuing a replacement Certificate, provided security
or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. Prior
to the issuance o any replacement certificate, t e Paying
Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in
connection therewith. Every replacement certificate issued
pursuant to the provisions of this Section by virtue of the
fact that any Certificate is lost, stolen, or destroyed shall
constitute a contractual obligation of the Issuer whether or
not the lost, stolen, or destroyed Certificate shall be found
at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Ordinance equally and proportion-
ately with any and all other Certificates duly issued under
this ordinance,
25
(e) Authority for Issuing Roplacement Certificates. in
accordance with section o Vernon 's Anno ex. civ-'St, Art.
717k-61 this Section of this Ordinance shall constitute author-
ity for the issuance of any such replacement certificate
without necessity of further action by the governing body of
the issuer or any other body or person, and the duty of the
replacement of such certificates is hereby authorised and
imposed upon the Paying Agent/Registrar, and the Paying hq*nt/-
Registrar shall authenticate and deliver such Certificates in
the farm and manner and with the offset, as provided in Section
6(d) of this Ordinance for Certificates issued in conversion
and exchange for other Certificates.
Section 12. CUSTODY, APPROVAL, AND REGISTRATION OF
CERTIFICATESs CERTIFICATE COUNSEL'S OPINION, AND CUSIP NUMBERS.
The Mayor of the Issuer is hereby authorized to have control of
the initial Certificate issued hereunder and all necessary
records and proceedings pertaining to the Initial Certificate
pending its delivery and its investigation, examination, and
approval by the Attorney General of the State of Texas, and its
registration by the Comptroller of Public Accounts of the State
of Texas. Upon registration of the Initial Certificate said
Comptroller of-Public Accounts (or a deputy designated in
writing to act for said Comptroller) shall manually sign the
Comptroller's Registration Certificate on the Initial Certifi-
cate, ar.d the seal of said Comptroller shall be impressed, or
placed in facsimile, on the initial Certificate. The approving
legal opinion of the Issuer's Bond Counsel and the assigned
CUSIP numbers may, &t the option of the Issuer, be printed on
the Initial Certificate or an any Certificates issued and de-
livered in conversion of and exchange or replacement of any
Certificate, but neither shall have any legal effect, and shell
be solely for the convenience and information of the registered
owners of the Certificates.
Section 13. COVENANTS REGARDING TAX-EXEMPT STATUS OF
BONDS. The Issuer Sere by revenants to tae such action or
regain from such action necessary to ensure the status of the
Bonds as obligations described in section 103 of the Internal
Revenue Code of 1986 or any predecessor thereof. in particu-
lar, but not by way of limitation, the issuer covenants as
followst
(a) None of the proceeds of the Bonds (including
investment earnings thereon) or of the facilities financed
with the proceeds of the Bonds will be used, directly or
indirectly, in the trade or business of any person or
entity other than the Issuer. For purposes of the fore-
going, any use of such proceeds or facilities in any
manner contrary to the guidelines set forth in Revenue
I
26
procedures 82-14 and 82-150, 1982-1 C.B. 459, 4600 or jay
amendments, revisions or supplements thereto, shall
constitute the use of such proceeds or facilities in the
traft or business of such person or entityt
(b) None of the proceeds of the Bonds (including
investment earnings thereon) will be used, directly or
indirectly, to finance loans to any persons or other
entities)
(c) Not by way of limitation, the issuer will take
such action or will refrain from any action which would
adversely affect the exemption from federal income
taxation of the interest paid on the Bonds, including
without limitation any action that would permit any of the
Bonds to be treated as "private activity bonds" within the
meaning of section 141 of the Code, and will take, or
require to be taken, such acts as may be reasonably within
its ability and as may from time to ties be required under
applicable law or regulation to continue to cause interest
on the Bonds to be excludable from gross income of the
holder, including the preparation and filing of any
statements or information.reports required to be filed by
the Issuer in order to maintain the tax-exempt status of
the interest on the Bondst and
(d) The Issuer has not taken, has no present inten-
tion of taking any action and knows of no action taken or
intended which would cause interest on the Bonds to be
includable in the gross income of any bondholders for
federal income tax purposes.
Section 14. COVENANTS REGARDING ARBITRAGE. (a) A Rebate
Fund is hereby esta s e by the Issuer, Such Fund shall be
for the sole benefit of the United States of America and shall
not be subject to the claim of any other person, including
without limitation the owners of they Certificates. The Rebate
Fund is established for the purpose of compliance with section
148 of the Internal Revenue Code of 1985 (the Code").
(b) At the close of each "Certificate Year," the Issuer
shall compute the amount of "Excess Earnings," if any, for the
period beginning on the date of delivery of the Initial Certif-
icate and ending at the close of such "Certificate Year" and
transfer to the Rebate Fund ar. amount equal to the difference,
if any, between the amount then in the Rebate Fund and the
Excess Earnings so computed. The term "Certificate Year" means
with respect to the Certificates each one-year period ending on
the anniversary of the date of delivery of the Initial Certifi-
cats, If, at the close of any Certificate Year, the amount in
27
zr°wyt!w~ap17T, 47 .aim 9F,:r^,',,:, r:a .3 ,x S t r., `..I
the Rebate Fund exceeds the amount that would be required to be
paid to the United States of America under paragraph id) belrnv
if the Certificates had been paid in full, such excess tir.,f Y.e
transferred from the Rebate rand and paid to the Issuer.
(c) In general, "Excess Earnings" for any period of Cime
means the sine of
(i) the excess of
(A) the aggregate amount earned during such
period of time on all "Nonpurpose Obligations"
(including gains on the disposition of such Obli-
gations) in which "Gross Proceeds" of the issue are
invested (other than amounts attributable to an
excess described in this subparagraph (c)(i)), over
(a) the amount that would have been earned
during such period of time if the "Yield" on such
Nonpurposs Obligations (other than amounts attrib-
utable to an excess described in this subparagraph
(c) (i) ) had been equal to the yield on the issue,
plus
(ii) any income during such period of time attrib-
utable to the excess described in subparagraph (c) (i)
above.
"Excess Earnings" will not include amounts, if any, which need
not be taken into account under the special rules of section
148(f)(4)(A) and (B) of the Code relating to bona fide debt
service funds and the six-month temporary investment period.
The terms "Nonpurpose Obligations," "Gross Proceeds" and
"Yield" shall have the meanings prescribed by section 148 of
the Code and shall be applied in the manner prescribed in such
section,
(d) The Issuer shall pay to the United States of America
at least once every five-years an amount that ensures that at
least 90 percent of the Excess Earnings from the date of
delivery of the Certificates to the close of the period for
which the payment is being made will have been paid. The
Issuer shall pay to the United States of America not later than
60 days after the Certificates have been paid in full 100
percent of the amount then required to be paid under section
148(f) of the Code as a result of Lxcess Earnings.
(e) The Issuer shall keep such records as will enable the
Issuer to fulfill its responsibilities under this section and
section 148(f) of the Code and shall retain such records for at
{
{
26
,
of a.:.a i i.
least six years following the final payment of principal and
interest on the Certificates.
(f) The Issuer will not use any portion of the proceeds
of the Certificates directly or indirectly to acquire "higher
yieldi.zq investmAents# * or to replace funds which were used
directly or indirectly to acquire "higher yielding invest-
ments." The term higher yielding investments means any invest-
ment property (as defined in section 148(b)(2) of the Code)
which produces a yield over the term of the issue which is
materially higher than the yield on the issuer (as defined
above). The foregoing limitation on higher yielding invest-
ments shall not apply to
(1) proceeds of the Certificates invested for a
reasonable temporary period of 3 years or less until such
proceeds are needed for the purpose for which the certifi-
oates are issued, or
(2) amounts invested in a bona fide debt service
fund if the gross earnings on such fund are less than
¢1000000 in any certificate year.
(g) The Issuer covenants to restrict the use of initial
Certificate proceeds in such manner and to such extent, as may
be necessary, so that the Certificates will not constitute
arbitrage bonds under section 148 of the Code. Any authorized
representative of the Issuer having responsibility with respect
to the issuance of the Certificates is authorized and directed,
alone or in conjunction with any other official, employee or
consultant of the Issuer to give an appropriate certificate on
behalf of the Issuer, for inclusion in the transcript of
proceedings for the Certificates, setting forth the facts,
estimates and circumstances and reasonable expectations per-
taining to section 148 of the Code and, to the extent appli-
cable, section 149(d) of the Code.
(h) The requirements of this Section are subject to, and
shall be interpreted in accordance with section 148 of the
Code.
Section 15. SALE OF INITIAL CERTIFICATE. The Initial
Certificate is hereby sold and shall be delivered to
for cash
or the par value erso an accrued interest Mr On to date
of delivery, plus a premium of $ . It is hereby offi-
cially found, determined, and deo,ar t at the Initial Certif-
icate has been sold at public sale to the bidder offering the
lowest interest cost, after receiving sealed bids pursuant to
an Official Notice of Sale and Bidding Instructions and
29
4 yi
I1.
Official Statement dated November 25, 19961 prepared and
distributed in connection with the sale of the Initial
Certificate. Said Official Notice of Sale and Bidding In-
structions and Official Statement, and any addenda, supplement,
or amendment thereto have been and are hereby approved by the
Issuer, and thsir use in the offer and sale of the Certificates
is hereby app+ruved. It is further officially found,
determined, and declared that the statements and representa-
tions contained in said Officia% Notice of Sale and Official
3tatement are true and correct in all material respects, to the
best knowledge and belief of the City Council and the Issuer.
Section 16. FURTHER PROCEDURES. The Kayor of the Issuer,
the City Secretary Secretary of the Issuer, and all other
officers, employees, and agents of the Issuer, and each of
them, shall be and they are hereby expressly authorized,
empowered, and directed from time to time and at any time to do
and perform all such acts and things and to execute, acknowl-
edge, and deliver in the name and under the corporate seal and
on behalf of the Issuer all such instruments, whether or not
hcrain mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Certificate ordi-
nance, the Certificates, the sale of the Certificates, and the
Notice of Sala and Official Statement. In case any officer
whose signature shall appear on ar.,y Certificate shall cease to
be such officer before the delivery of such Certificate, such
signature shall nevertheless be valid and sufficient for all
purposes the same as if such officer had remained in office
until such delivery.
30
i 1
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
T0: Ross Litman, Emerg:ncy Management Coordinator
PROM: Debra A. Drayovitch, City Attorney
SUBJECT: Agreement between North Texas Repeater Association
and the City of Denton, Texas
DATE: December 8, 1986
Attached is a copy of the above-referenced contract and a
reduced copy of the ordinance approving same. If same sects
with your approval, forward Charlotte Allen a copy of the
ordinance and an executed copy of the contract for Council
approval. Should you have any comments or questions in this
regard, please advise.
4AL)
15EBRA A. 0
DAD:js
xc: Lloyd V. Harrell, City Manager
Attachment
1
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71L W ATM
1
d Y
NO.
A RESOLUTION APPROVING AN AGREEMENT BLTWEEN THE CITY OF DENTON
AND THE NORTH TEXAS REPEATER ASSOCIATION FOR EMERGENCY
COMMUNICATIONS ASSISTANCE, AND PROVIDING FOR AN EFFECTIVE DATE.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION I.
That the Mayor and City Secretary are hereby authorized and
directed to execute and attest, respectively, an agreement
between t!.~ City of Denton and the North Texas Repeater
Association for emergency assistance under the terms and
conditions being contained in said agreement which is attached
hereto and made a part hereof.
SECTION II.
That this resolution shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 1986.
RAY
MAYO
CITY OF DENT~ON, TEXAS
ATTEST:
CHARLOTTE XLLENO CITY SECRETW
CITY OF DENTON* TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCHO CITY ATTORNEY
CITY OF DENTONt TEXAS
BY:
r
r
4
16S9L
THE STATE OF TEXAS I AGREEMENT BETWEEN THE NORTH TEXAS
REPEATER ASSOCIATION AND THE CITY OF
DENTON. TEXAS
COUNTY OF DENTON I
The City of Denton, hereafter referred to as the "City" and
the North Texas Repeater Association, hereafter referred to as
"NTRA", hereby agree to the terms and conditions set forth
herein.
SECTION I. Purpose
The purpot.te of this agreement is to provide emergency
communications for the City of Denton in meeting any emergency
or disaster from enemy attack or other cause, natural or man-
made. This agreement recognizes that the prompt, full and
effective utilization of the resources of the respective organi-
zations, the City and North Texas Repeater Association, is an
effective utilization of the resources of the respective parties
and may be essential to the safety, care and welfare of the
people thereof in the event of a major emergency or disaster.
SECTION II. Responsibilities
The directors and officers of both parties shall constitute
a committee to formulate plans and take all necessary steps for
the implementation of this agreement. Such planning shall
incorporate the use of resources, including personnel and
equipment necessary. It shall be the duty of each party to
formulate emergency plans and programs for application within
the boundaries of each. There shall be frequent consultation
between the reppresentatives of the City and NTRA and free
exchange of information and services. In carrying out such
emergency services, the City and NTRA shall, so far as possible,
provide and follow uniform standards, practices and rules and
regulations, including;
A. Warnings and signals for exercises or disasters and
the mechanical devices to be used in connection
therewith;
B. Selection of equipment and services used, or to be
used, for emergency purposes to assure that such
Aquipment and services will be easily and freely
interchangeable when used in or by the other party;
C. The conduct and control of generators, trustees,
radio operators City staff and other involved
personnel and their proper movement or activities
7✓' t t~,-~ v ..3,~ l~ ~ i i r'r. a= ,,rx4 4:~ i a i .t iroil
Zv'ir-' `32 C~,v S :x r;a+>•. !T ~~r = a^'.q m. ..q A_ -~3T~°.:'
71
prior, during and subsequent to exercises
emergencies or disasters;
Do 'The compliance of governing FCC rules and re ula-
tions, which may require periodic monitoring of the
frequencies involved by the City.
Equipment provided by NTRA must not belong to an individual,
but must be NTRA approved, sponsored and operated.
Either party requested to render aid shall take such action
as is necessary to provide and make available the resources
covered by this agreement in accordance with terms hereof;
provided that it is understood that the party rendering aid may
withhold resources to the extent necessary to provide reasonable
protection for the other. The emergency communications forces,
NTRA, and the utilizing forces, the City, will continue under
the command and control of their regular leaders but the com-
munications units or forces shall come under the operational
control of the City authorities receiving assistance when this
agreement is activated.
SECTION III. Administration
The City Manager o:., his designee, shall be responsible for
the administration of this agreement on behalf of the City.
All requests under this agreement shall be made between the
City and NTRA officials, or according to emergency plan
activation, when appropriate.
SECTION IV. Assistance by NTRA
The following detailed services shall be provided by NTRA to
the City:
A. Ewergency communications, if requested, for:
i. Telephone/power outages
ii. Tornado warning
iii. Flash flood warning
iv. Shelter/evacuation
v. Surveillance/_reconnal6sance
B. Non-emergency services for:
1. Provision of consultation on communications
systems/upgrade
li. Planning for other emergency services
Page 2
7777
i
t
iii, Provision of electricity for repeater operations
iv. Telephone line/charges for repeater operations
v. UHF and VHF repeater systems
vi. Maintenance of tower and equipment
C, In addition, NTRA will continually maintain its
assigned area in a clean and neat manner and provide
a minimum of one patrol during daytime and one at
night, on an irregular basis, for security.
SECTION V. Assistance by City
The following detailed services shall be provided by the City
to NTRA:
A. Emergency support for:
i. Assessment of needs
ii. Direction and control of information
iii. Keeping NTRA informed of the emergency situation
iv. Portable generator, if available
B, Non-emergency use of City's tower located at the corner
of Scripture and Thomas Streets.
SECTION VI. Limitations
Limiting factors affecting NTRA services to the City will be
based on severity of situation and manpower availability due to
catastrophic disasters or survival situations. Portable power
generators are available for electrical power and normal
repeater operations,
Limiting factors affecting the City's service to NTRA will
be based on access to tine antenna, repeater, and controller
apparatus.
SECTION VII. Liability, and Cowponsation
Neither party shall provide payment of compensation nor
defth benefits to injured members of the other party and the
representatives of deceased members of either party in case such
members sustain injuries or arg killed while rendering aid
pursuant to this agreement.
SECTION VIII. Supplemeprary Agreements
Inasmuch as it is probable that the pattern and detail of
the arrangements for mutual lid among two (2) or more agencies
zg
Page 3
r~ T."i.~lull o~_..._.• 't
.:a .t t,,,. 7•~°'* E. ,a :~-•••rma ;s , s.r a •'gi s.t c •ar.: ;r~ -f^.: '
VIA
say differ from that appropriate ason$ other agencies hereto,
this agreement contains elements of a road base common to all
parties, and nothing herein contained shall preclude any party
or agency from entering into supplementary agreements with other
agencies. Such supplementary agreements may include and ad-
dress, but shall not be limited to, providing communications for
evacuation,reception of injured or other persons, and the
exchange of information concerning medical care, fire, police,
public utility reconnaissance, welfare, transportation and
assistance to the City communications personnel; equipment and
supplies for communications by NTRA. Specifically, City intends
to enter into agreement with another Repeater organization who
may be licensed to utilize City's tower and NTRA hereby
recognizes City's right to take such action and specifically
covenants not to interfere with the quiet enjoyment of any other
authorized organization's use of City's property.
SECTION IX. Consideration
w
NTRA will pay one dollar ($1.00) per year for facility usage
in addition to providing the above services.
SECTION X. Term
This agreement shall continue in force and remain hinding on
each party for one (1) year from the date of execution and shall
be automatically renewed for successive on (1) year terms, until
such time as the governing body of either party takes action to
withdrew therefrom. Such action shall not be effective until
thirty (30) days after written notice thereof has been sent by
the other party wishing to terminate the agreement. Notices
shall be deemed effective when deposited in the United States
mail, certified, postage prepaid, return receipt requested and
shall be delivered to:
CITY OF DENTON NORTH TEXAS REPEATER ASSOCIATION
Lloyd V. Harrell Woody Liljedahl
City Manager P.0. Box 2603
215 E. McKinney Donton, Texas 76202
Denton, Texas 76201
SECTION XI. Seyerability
This agreement shall be construed to effectuate the purposes
stated in Section I hereof. If any provi1iign of this agreement
is declared unconstitutional, or the applicability thereof to any
persons or circumstances is held invalid, the constitutionality
of the remainder of the agreement and the applicability thereof
to other persons and circumstances shall not be affected thereby.
Page 4
7
d
rt LI ii I 1 i I I y I 1_.II r Y. r1` e
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SECTION XII. Default
Any violation of rules set forth in this agreement by NTRA
shall necessitate the immediate removal of all NTRA equipment
from City property and invoke the provisions of Section IX.
SECTION XIII. No Duty Imposed
wwr
This agreement `hall not be construed as or deemed to be an
agreement for the benefit of any third party or parties. Any
performance undertaken by the City pursuant to this agreement
shall be pursuant to the governmental function of providing
emergency services to the public in general and this agreement is
not meant to and shall n,)t be construed an imposing any duty,
public or private, on any party hereto to provide any assistance,
aid, or care to the other party or to any third party.
EXECUTED this the day of , 1986.
CITY OF DENTON, TEXAS
BY.,
KXT r MAYOR
ATTEST:
CITY OF DENTON, TEXAS ,
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY: 9
NORTH TEXAS REPEATER ASSOCIATION
BY:
J
Page S
,,apa
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Ross Litman, Emergency Management Coordinator
FROM: Debra A. Drayovitch, City Attorney
SUBJECT: Agreement between YL Roses of Texas Repeater
Association and the City of Denton, Texas
DATE: December 8, 1986
Attached is a copy of the above-referenced contract and a
reduced copy of the ordinance approving same. If save meets
with your approval, forward Charlotte Allen a copy of the
ordinance and an executed copy of the contract for Council
approval. Should you have any comments or questions in this
regard, please advise.
MARIA 7~.DWOVITCH
DAD:js
xc: Lloyd V. Harrell, City Manager
Attachment
,a.
/ ,reAJ ry fir: . •54'~u 'I ti;~ - ` / tom'/~1J 'fir .t i',"! t ti.. l.~r~, It°L, c:x.~.r r,' ,t r
f . Wit
N0.
A RESOLUTIOR APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND THE YL ROSES OF TEXAS REPEATER ASSOCIATION FOR EMERGENCY
COMMUNICATIONS ASSISTANCE, AND PROVIDING FOR AN EFFECTIVE DATE*
NON, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION I.
That the Mayor and City Secretary are hereby authorised and
directed to execute and attest, respectively, on agreement
betweon the City of Denton and the YL Roses of Texas Repeater
Association for emergency assistance under the terms and
conditions being contained in said agreement which is attached
hereto and made a i .jrt hereof.
SECTION II.
That this resolution shall become effective immediately upon
its passage and approval,
PASSED AND APPROVED this the day of , 1986.
i
I
RAY STEPHE
CITY OF DENTON, TEXAS
ATTEST:
i
CITY OF DENTON$ TEXAS
APPROVED AS TO,LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
;A
1 A 1 4 J,. I Y Y u I J I I
1'11 n
F 1
1636E
THE STATE OF TEXAS S AGREEMENT BETWEEN THE YL ROSES OF
ION
COUNTY OF DENTON f TEXAS
XASAND
HE CITY OFR DENTON,A TE
The City of Denton, hereafter referred to as the "City" and
the YL Roses of Texas Repeater Association, hereafter referred
to as "YLRTRA", hereby agree to the terms and conditions set
forth herein.
SECTION I. Purpose
The purpose of this agreement is to provide emergency
communications for the City of Denton in meeting any emergency
or disaster from enemy attack or other cause, natural or man-
made. This agreement recognizes that the prompt, full and
effective utilization of the resources of the respective organi-
zations, the City and YL Roses of Texas Repeater Association, is
an effective utilization of the resources of the respective
parties and may be essential to the safety, care and welfare of
the people thereof in the event of a major emergency or disaster.
SECTION II. Responsibilities
The directors and officers of both parties shall constitute
a commii-tee to formulate plans and take all necessary steps for
the implementation of thj° agreement. Such planning shall
incorporate the use of resources, including personnel and
equipment necessary. It shall be the duty of each party to
formulate emergency plans and programs for application within
the boundaries oy each. There shall be frequent consultation
between the representatives of the City and YLRTRA and free
exchange of information and services. In carrying out such
emergency services, the City and YLRTRA shall, so far as
possible, provide and follow uniform standards, practices and
rules and regulations, including;
A. Warnings and signals for exercises or disasters and
the mechanical devices to be used in connection
therewith;
B. Selection of equipment and servicos used, or to be
used, for emergency purposes to assure that such
equipment and services will be easily and freely
interchangeable when used in or by the other party;
C. The conduct and control of generators, trustees,
radio operators, City staff and other involved
personnel and their proper movement or activities
r r ~i8r:5'!t~m r 71? 577 r
prior, during and subsequent to exercises,
emergencies or disasters;
D. The compliance of governing FCC rules and re ula-
tions, which may require periodic monitoring of the
frequencies involved by the City.
Equipment provided by YLRTRA must not belong to an
individual, but must be YLRTRA approved, sponsored and operated.
Either party requested to render aid shall take such action
as is necessary to provide and make available the resources
covered by this agreement in accordance with terms hereof;
provided that it is understood that the party rendering aid may
withhold resources to the extent necessary to provide reasonable
protection for the other. The emergency communications forces,
YLRTRA, and the utilizing forces, the City, will continue under
the command and control of their regular leaders, but the com-
munications units or forces shall come under the operational
control of the City authorities receiving assistance when this
agreement is activated.
SECTION III. Administration
The City Manager or his designee, shall be responsible for
the administratir^n of this agreement on behalf of the City.
All requests under this agreement shall be made batween the
City and YLRTRA officials, or according is emergency plan
activation, when appropriate.
SECTION IV. Assistance by YLRTRA
The following detailed services shall be provided by YLRTRA
to the City:
A. Emergency communications, if requested, for:
i. Telephone/power outages
ii. Tornado warning
iii. Flash flood warning
iv. Shelter/evacuation
v. Surveillance/reconnaissance
B. Non-emergency services for:
i. Provision of consultation on communications
systems/upgrade
11. Planning for other emergency services
PAGE 2
i rp e 1" r ro T: s 1, ~ i fir y : l c.
iii. rrovision of electricity for repeater operations
iv, Telephone line/charges for repeater operations
v. UHF and VHF repeater systems
vi. Maintenance of tower and equipment
C. In addition, YLRTRA will cuntinually maintain its
assigned area in a clean and neat manner end provide
a minimum of one patrol during daytime and one at
night, on an irregular basis, for security.
SECTION V, Assistance by City
The following detailed services shall be provided by the City
to YLRTRA:
A. Emergency support for:
I. Assessment of needs
ii. Direction and control of information
iii. Keeping YLRTRA informed of the emergency situation
iv. Portable generator, if available
B. Non-emergency use of City's tower located at the corner
of Scripture and Thomas Streets.
SECTION VI. Limitations
Limiting factors affecting YLRTRA services to the City will
be based on severity of situation and manpower availability due
to catastrophic disasters or survival situations. Portable
powet generators are available for electrical power and normal
repeater operations.
Limiting factors affecting the City's service to YLRTRA will
be based on access to the antenna, repeater, and controller
apparatus.
SECTION VII. Liability and Compensation
Neither party shall provide payment of compensation nor
death benefits to injured members of the other party and the
representatives of deceased members of either party in case such
members sustain injuries or are killed while rendering aid
pursuant to this agreement. '
SECTION VIII. Supplementary Agreements
inasmuch as it is probable that the pattern and detail of
the arrangements for mutual aid among two (2) or more agencies
PAGE 3
'ICY ' . :Y'. ..Ki
may differ from that appropriate among other agencies hereto,
this agreement contains elements of a broad base common to all
parties, and nothing herein contained shall preclude any party
or agency from entering tnto supplementary agreements with other
agencies. Such supplementary agreements may include and ad-
dress, but shall not be limited to, providing communications for
evacuation,recept,ton of injured tar other persons, and the
exchange of in£or~netion concerning medical care, fire, police,
public utility ^.~connaissance, welfare, transportation and
assistance to the City communications personnel; equipment aad
supplies for communications by YLRTRA. Specifically, City
intends to enter into agreement with another Repeater orga-
nization who may be licensed to utilize City's tower and YLRTRA
hereby recognizes City's right to take such action and
specifically covenants no'k to interfere with the quiet enjoyment
of any other authorized organization's use of City+s property.
SECTION IX. Consideration
YLRTRA will pay one dollar ($1.00) per year for facility
usage in addition to providing the above services.
SECTION X. Term
This agreement shall continue in force and remain binding on
+iach party for one (1) year from the date of execution and shall
be automatically renewed for successive on (1) year terms, until
such time as the governing body of either party takes action to
withdrew therefrom. Such action shall not be effective until
thirty (30) days after written notice thereof has been sent by
the other party wishing to terminate the agreement. Notices
shall be deemed effective when deposited in the United States
mail, certified, postage prepaid, return receipt requested and
shall be delivered to:
CITY OF DENTON YL ROSES Of TEXAS REPEATER ASSOCIATION
Lloyd V. Harrell Maureen E. McClain
City Ma.iager Box 1051
21S E. McKinney Sanger, Texas 76266
Denton, Texas 76201
SECTION XI. Severabilit~y
This agreement shall be construed to effectuate the purposes
stated in Section I hereof. If any provision of this agreement
is declared unconstitutional, or the applicability thereof to any
persons or circumstances is held invalid, the constitutionality
of the remainder of the agreement and the applicability thereof
to other persons and circumstances shall not be affected thereby.
PAGE 4
71
y
SECTION XII. Default
Any violation of rules set forth in this agreement b) YLRTRA
shall necessitate the immediate removal of all YLRTRA equipment
from City property and invoke the provisions of Section IX.
SECTION XIII. No Duty Imposed
This agreement shall not be construed as or deemed to be an
agreement for the benefit of any third party or parties. Any
performance undertaken by the City pursuant to this agreement
shall be pursuant to the governmental function of providing
emergency services to the public in general and this agreement is
not meant to and shall not be construed an imposing any duty,
public or private, on any party hereto to provide any assistance,
aid, or care to the other party or to any third party.
EXECUTED this the day of , 1986.
CITY OF DENTON, TEXAS
BY:
ATTEST:
CURLOTTE ALLEN, CITY SECRETARY
CITY OF DENTON$ TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY.,
YL ROSES OF TEXAS REPEATER
ASSOCIATION
BY:
FtdiUR$Bl~
MCCLAIN
PAGE S
a
1629E A
R B S 0 L U T I 0 N
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DlNTON, TEXAS:
SECTION I.
That the attached agreement between the State of Texas and
the City of Denton for the installation, construction, existence,
use, operation, and maintenance of certain highway traffic
signals/illumination at the locations) shown on Exhibit it
attached hereto and made a part hereof, in the City of Denton,
be and the same is hereby approved.
SECTION II.
That the City Manager is hereby authorized to execute said
contract on behalf of the City of Denton and to transmit the
same to the State of Texas for appropriate action.
SECTION III,
That this resolution shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of 2996.
RAY S ,
CITY OF DENTON, TEXAS
ATTEST:
CHXKLOTTR ALLENj CITY SECRETARY
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Denton
SECTION 1. That the certain agreement dated between the State of
Texas and the City of Denton or a ns allation, construc-
tion, existence, use, opera on, an 4& n enance of certain highway traffic
$ignals/illumination at the location(s) shown on EXHIBIT It attached hereto and
made a part hereof, in the City of Denton , be sod the sable is
hereby approved, and Ti hereby authorized to
execute said contrac on SAITIF o said city an to transmit the same to the
State of Texas for appropriate action.
SECTION 2. That this Resolution shall take effect immediately upon its passage.
ADOPTED:
APPROVED:
syor
ATTEST:
acre ary
City
Clerk
APPROVED AS TO FORM:
~~i~Ly'~~orney ~
RESOLUTION (TRAFFIC SIGNAL/ILL~iiINATION) 11-84
1-1
}
0- F"
C0MTY OF TRAVIS
This AGREEMENT, dated this day of , 19 9 by and between
the State of Texas, hereinafter called the "Stab,," Party of the First Part; and
the City of Denton 11 Denton County, Texas, acting by
and through its duly authorized officers under an Ordinance/Resolution, passed
the day of , I9 hereinafter tailed the "City," Party of the
Second Part, is made to become effdetive when fully executed by both parties.
WIT NESSETH
WHEREAS, by virtue of a Municipal Maintenance Agreement entered into by the
City and the State, the City has authorized the State to maintain certain highways
within the City which consist in part of the freeway type highway; and
WHEREAS, from time to time the City requests the State to install traffic
signals on such highways; and
WHEREAS, the State under the provisions of Minute Order 70179, dated July 31,
19751 has authority to install traffic signals in cities of over 16,000 population
on freeway type highways; and
WHEREAS, the City hat a population of over 15,000 according to the latest
Federal Census;
AGREEMENT
NOW, THEREFORE, in consideration of the premises and of the mutual covenants
and agreements of the parties hereto to be by them refopectively kept and
performed, as hereinafter set forth, it is agreed as follows:
AGREEMENT (TRAFFIC SIGNAL FREEWAY TYPE-B) 11.84
1-4
r
T. The City will return 'Any and all parts of said highway traffic signal
S `
installation(s) to the State should it (they) be removed by the City for any
reason other than for installation on a State or Federal nuoered highway route at
a location approved by the State.
8, The City will be responsible for the police enforcement required for
securing obedience to the highway traffic signal(s)o
g. In the event the signal(s) installed in accordance with this Agreement
become unnecessary or are removed for any reason, this Agreement shall terminate.
10. To the extent permitted by law, the City shall indemnify and save
harmless the States its agents or employees, from all suits, actions or claims and
from all liability and damages for any and 'all injuries or damages sustained by
any person or property in consequence of any neglect in the performance, or
failure of performance of the City, its agents and employees under this Agreement.
119 The State will not incur any financial obligation to the City as a
result of this Agreement.
AGREEMENT (TRAFFIC SIGNAL FREEWAY - TYPE 8) 3-4 11-84
-r1 er_.. ~r.. .~cr-ems • i..
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Denton
SECTION 1. That the certain agreement dated between the State of
Texas and the City of Dgrtton ,for'the"~'ns allation, construc-
tion, existonce, use, operation, an mail ce of certain highway traffic
$ignals/illumination at the location(s) shown on EXHIBIT 1, attached hereto and
made a part hereof, in the City of Denton , be and the same is
hereby approved, and is hereby authorized to
execute said contract on behalf o said city an to transmit the same to the
State of Texas for appropriate action,
SECTION 7. That this Resolution shall take effect immediately upon its passage.
ADOPTED:
APPROVED:
ayor
ATTEST':
Secretary
City
Clerk
APPROVED AS TO FORM:
RESOLUTION (TRA;FIC SIGNAL/IL!UMINATION) 11.84
1-1
STATE OF TEXAS
COLMTY OF Denton
I,
the duly appointed
qualified and acting city secretary of the City of Denton
Texas, hereby certify that the foregoing
pages constitute a true and correct
copy of an ordinance/resolution duly passed by the City Council at a meeting
held on A.D., It at o'clock
To certify which, witness my hand and seal of the City of Denton
Texas, this day of
on , 1q --j at
Bent
Texas.
TRY ecre ary oO lffe-L`y of--
Denton
Texas
~
Tt
SUIT OF
CORlIiTY of TRAVIS
This AGREEMENT, dated this day of , 19 by and between
the State of Texas, hereinafter called the "State," Party of the First Part; and
the City of Denton Denton
-County. Texas, acting by
and through its duly authorized officers under an Ordinance/Resolution, passed
the lay of , 19 hereinafter called the "City," Patty of the
Second Part, is made to become effective when fully executed by both parties.
W_ITNESSETH
WHEREAS, by virtue of a Municipal Maintenance Agreement entered into by the
City and the State, the City has authorized the State to maintain certain highways
within the City which consist in part of the freeway type highway; and
WHEREAS, from time to time the City requests the State to install traffic
signals on such highways; and
WHEREAS, the State under the provisions of Minute Order 70179, dated July 31,
19750 has authority to install traffic signals in cities of over 15,000 population
on freeway type highways; and
WHEREAS, the City has a population of over 15,000 according to the latest
Federal Census;
AGREEMENT
NOW, THEREFORE, in consideration of the premises and of the mutual covenants
and agreements of the parties hereto to be by them respectively kept and
performed, as hereinafter set forth, it is agreed as follows;
AGREEMENT (TRAFFIC SIGNAL FREEWAY TYPE-B) 11-84
1-4
70 The City will return any and all parts of =aid highway traffic signal
S '
Installation(s) to the State should it (they) be removed by the City for any
reason other than for Installation on a State or Federal nuMared highway route at
a location approved by the State.
R., The City will be responsible for the police enforcement required for
securing obedience to the highway traffic signal(s).
9. In the event the signal(s) Installed in accordance with this Agreement
become unnecessary or are removed for any reason, this Agreement shall terminate.
1C,, To the extent permitted by laws the City shall indemnify and :..'ave
haemless the States its agents or emAployeess from all suits, actions or claims and
from all liability and damages for any and all injuries or damages sustained by
any person or property In consequence of any neglect in the performance, or
failure of performance of the City, its agents and employees under this Agreement.
11. The State will not incur any financial obligation to the City as a
result of this Agreement$
AGREEMENT (TRAFFIC SIGNAL FREEWAY - TYPE 8) 3-4
11-84
I
2 -r
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Denton ,
SECTION 1. That the certain agreement dated between the State of
Texas and the City of Denton ; for the iis~allation, construc.
tion, existence, use, opera on, an maintenance of certain highway traffic
signals/illumination at the location(s) shown on EXHIBIT 1, attached hereto and
made a part hereof, in the City of Denton , be and the same is
hereby approved, and is hereby authorized to
execute said contract on Behalf of said city and to ransmit the same to the
State of Texas for appropriate action.
SECTION 2. That this Resolution shall take effect immediately upon its passage.
ADOPTED:
APPROVED:
Mayor
ATTEST:
City Secretary
Clerk
APPROVED AS TO FORM:
I
W City Attorney
RESOLUTION (TRAFFIC SIGNAL/ILLUMINATION) 11-84
1-1
.F..
STATE OF TEXAS
COUNTY OF Denton
the duly appointed,
qualified and acting city secretary of the City of Denton
Texas, hereby certify that the foregoing pages constitute a true and correct
cop,Y of an ordinance/resolution duly passed by the City Council at a meeting
held on
, A.D., 19 at o'clock
To certify which, witness my hand and seal of the City of Denton
texts, this day of,_,_~
Denton ~ 1 g._.._.+ at
, Texas.
y ecre ary o e y a
Denton
Texas
iRFF.3,"$s 4 Mls irr! .3 ..iP .Y`°{'- Sy''e ~
CMTY OF TOMS §
This AGREEMENT9 dated this day of
19 by and between
the State of Texas, hereinafter called the "State," Party of the First Part; and
the City of Denton Denton
County, Texas, acting by
and through its duly authorized officers under an Ordinance/Resolution, passed
the day of 19.9 hereinafter called the "City," Party of the
Second Part. is made to become effective when fully executed by both parties,
WITNESSETH
WHEREAS, by virtue of a Municipal Maintenance Agreement entered into by the
City and the Statet the City has authorized the State to maintain certain highways
within the City which consist in part of the freeway type highway; and
WHEREAS, from time to time the City requests the State to install traffic
signals on such highways; and
WHEREAS, the State under the provisions of Minute Order 70179, dated July 31,
19751 has authority to install traffic signals in cities of over 16,000 population
on freeway type highways; and
WHEREAS, the City has a population of over 15,000 according to the latest
Federal Census;
AG_R_f EM_ NT
NOW, THEREFORE, in consideration of the premises and of the mutual covenants
and agreements of the parties hereto to be by them respectively kept and
performed, as hereinafter set forth, it is agreed as follows:
AGREEMENT (TRAFFIC SIGNAL FREEWAY TYPE,B) 11.84
1-4
: v 4-,},R q ,;n3y;, w : !e" .z r 1. ~•4 :.y 1 - ti "^T
The City will return any and 411 parts of said highway traffic signal
installation(s) to the State should it (they) be remove by the City for any
reason other than for installation on a Stste or federal numbered highway route at
a location approved by the State.
8. The City will be responsible for the police enforcement required for
securing obedience to the highway traffic signal(s).
g. In the event the signal(s) installed in accordance with this
becomle unnecessary or are removed for any reason, this Agreement shall termiinnn
A
106 To the extent permitted by law, the City shall indemnify and save ate.
harmless the State, its agents or employees, from all suits, actions or claims and
from all liability and damages for any and all injuries or damages sustained by
any person or property in consequence of any neglect in the performance, or
failure of performance of the City, it% agents and employees under this Agreement.
il. The State will not incur any financial obligation to the City as a
result of this Agreement.
AGREEMENT (TRAFFIC SIGNAL FREEWAY • TYPE B) 3»4
11-t34
V, V
RESOLUTION
BE IT BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF Denton
SECTION 1. That the certain agreement dated between the State
of Texas and the City of Denton 1, l'r- e et cover_~af
various ra ects covering the ns a a Construct ion. ex s{"~en use, opera-
Citooof and ma Dentonce of certain highway traffic signals/illumination in the
be• and the same is hereby approved, and
is ere y au or xe execu a said contract on behalf of said city and~o"
transmit the same to the State of Texas for appropriate action.
SECTION 2. That this Resolution shall take effect immediately upon its passage.
ADOPTED:
APPROVED:
~iyor
ATTEST:
ecre ary
City
Clerk
APPROVED AS TO FORM:
"I `ty X fo nr iy
BLANKET RESOLUTION (TRAFFIC SIGNAL/ILLL441NAT ION) 11-94
1-1
c~fy
STATE OF TEXAS
COUNTY OF Denton
qualified and acting city secretary of the City of ' the duly appointed,
Denton
Texato hereby certify that the foregoing pages constitute a true ad corroct
cNy of an ordinance/resolution duly passed by the City Council at a meeting
held on , A.D., 14
at O~Clock M~
TO certify which, witness my hand and seal of the City of Denton
Texas, this day of
19 at
Denton
Texas.
~~y `Sec rely--moo `the Cfi'y
Denton
texas
-I.F.c-ate
.
,
COMMISSION STATE DEPARTMENT OF HIGHWAYS £NGINEEA-DIIECTOR
RONAT C, LANIER, CHAIRMAN AND PUBLIC TRANSPORTATION MARK 0, OOODE
THOMAS M. DUNNWO P. 0. Box 3067
RAY STOKER, JR. Dallas, Texas 75221-3067
October 16, 1986
IN REPLY REFER TO
FILE NO.
Control 195-2-39
Project HES 0008(536)
U.S. 77 f Windsor Drive
Denton County
Mr. Jerry Clark
City Engineer
City of Denton
215 East MoXinney
Denton, Taxes 76201
Subjects Traffic Signal Agreement
Dear Mr, Clarke
Highway safety funds have been committed to upgrade th/l traffic signals at
V the intersection of u,s, Highway 77 with Windsor Drive in the City of
Denton. in the past an IMividual signal agreement has been presented to
you for each signal that we install within your city. We propose a "Blanket"
type agreement that gives the Mayor, t"ity Manager or other City Official the
authority to sign the title sheet of signal plans, thereby making that
intersection a tart of the agreement,
The attached traffic signal agreement and supporting documents will provide
for the State to prepare plans, supervise construction and turn the
completed signals over to the City for operation and maintenance. YoLIWill
be given a set of proposed construction plans and asked to have the proper
City Official sign the title sheet indicating your approval of the proposed
Plana.
Please have these documents executed and return three (3) original
signature agreements to this office for further processing. After,ali
parties have fully executed these documents, one (1) completely executed
original agreement will be returned to your office,
: G
t is _°.`z!. Y . Z` `~R rg. 1'''q s t..
Mr. Jerry Clark
October 16, 1986
Page 2
1.14 are currently working toward a March 1907 contract letting which mean
that the signed plans must be in Austin no later than December 16, i986.~j
If you have any questions concerning this proposed installation, please
contact Mr. Dwight Bird at 817/307-1414, of Mr. Leroy Wallen at 214/320-
6235.
Sincerely,
4 44
Robert L. Yielding
District Engineer
Attachments
CITY of DENTON / 215 E. McKinney / Denton, roxse 74201
MEMORANDUM,
DATE: December 8, 1986
TO: Rick Svehla, Assistant City Manager
FROM: Jerry Clark, City Engineer
SVBJECT: Agreement Traffic Signal - Highway 77 at Windsor
The agreements and resolution were provided by the State
Department of Highways and Public Transportation for the
E urpo~-e of approval of the proposed plans 'by the City Manager.
egal reviewed the documents and found no problems,
Please Dave the City Council review and approve the resolution
so we can proceed with construction at an early date.
The safety monies will provido for permanent metal poles,
pedestrian crossings, sidewalks at the corners, replacement of
our span wire equipment, and controllers so we can use them
also where.
Je y ?~~n k
Ci y E eer
0431E
P~Q1 ."T;'F• ;:9.. den,. 4 ..r rr n *e ayr =n~,,.P;~:?wa i.~6F~' yl
R E S O L U T I O N
WHEREAS, the City of Denton through its City Council and the
County of Denton through its Commissioners Court, have given
serious consideration to the present and future health care
needs of the residents of the community served by Flow Memorial
Hospital; and
WHEP,.EAS, the City and the County desire to assure the
availability of health care for indigent county residents and
the New Corporation is willing to provide such care; and
WHEREAS, the City and the County have requested a Blue
Ribbon Committee to study the Hospital and its future; and
WHEREAS, upon receipt of the report of the Blue Ribbon
Committee, the City and the County have determined that
significant changes are necessary to assure the future
viability of the Hospital; ar.d
WHEREAS, the City and the County have determined that
entering into a Lease Agreement with the New Corporation to
lease assets of Flow Memorial Hospital it in the best interests
of the residents of the County of Denton and the City of Denton;
an
WHEREAS such Lease Agreement is contingent on the right of
at least 10i of the qualified voters by petition before the 31st
day after this resolution to require a referendum on the Lease
Agreement; and
WHEREAS, entry into such Lease Agreement is contingent upon
the issuance by a court of competent jurisdiction of a final
non-ap eatable declaratory judgment pursuant to TEX. REV,
CIV.ST T,ANN art. 717m-2 tvernon's Supp. 1986) upholding the
legality and validity of such Lease Agreement; NOW, Tt1ERPFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTON:
SECTION It
That subject to the contingencies set forth above as well as
all conditions precedent set forth in the Agreement, the Mayor
is hereby authorised to execute the Lease Agreement between the
City of Denton, the County of Denton, Flow Memorial Hospital
Board of Directors and Flow Regional Medical Center, for the
lease of the, assets of Flow Memorial Hospital to Flow Regional
Medical Center, in substantially the fora as attached hereto and
made a part hereof.
L~i$ R~.s''" *T'yM "y;re'•r .r.. .-,-S I .+a 3. r,,rT.. '.T1 " 'r r f' -s ra 'n'!. ~1 a y; „gq
SECTION II.
That this resolution shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 1986.
CITY OF DENTON, TEXAS
ATTEST:
MOLOM ALLEN CITY
CITY OF DENTON,OTEXAS
APPROVED AS TO '.EGAL FORM:
DEBRA ADAMI DRAYOVITCHp CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
i
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Between
FLOW RMIOM JWDICM CXR
(a newly-formed Texas non-profit corporation),
and
COUNTY 01 DUM 8, TOM
(a political subdivision of the State of Texas),
CITY OF DsNTON, TRW
(a municipal corporation)
g. B. PLO" TRUST
(a charitable trust established February 14, 1946)
and
BOARD OF DIRECT Ma OF FUM xWORML NOBPITAL
(a joint agent of the County of Penton, Texas and
the City of Dentar, Texas)
Datedc
C~RT]~IN PROVISIONS OFT I g T
RA ION NDllR T S T
X R T
: "-5 a _ ~ F ,r>,~:-'• ° s '~c•a: ,r
THIS LEASE, made as of the day of , among
Flow Regional Medical Center, a Texas non___-profit corporation
("Corporation"), the H. Z. Flow Trust, a charitable trust established
by an inter vivos gift made by H. E. Flow on February 14; 1946 and by
the will of H. E. Flow dated January l7, 1946 and filed for probate
on February 1947 (the "Trust"), the County of Denton, T~►xas, a
political subdivision of the State of Texas (the "County"), the City
of Denton, Texas, a municipal corporation (the "City") and the Board
of Directors of Flow Memorial Hospital, a joint agent of the county
and the City for hospital purposes pursuant to Article 4494i-1,
Vernon's Annotated Texas Statutes (the "Board").
WITNESSBTHt
The County, the City, the Trust and the Board (referred to
jointly herein as "Lessors") desire to lease-to the- Corporation all
of the assets and property of Flow Memorial Hospital (the "Hospital");
and
WHEREAS, the City and the County directly, and through their
agent the Board, and the Trust own Flow Memorial Hospital, each
having an undivided percentage interest therein; and
WHEREAS, the County through its Commissioners Court, and the
. City through its City Council have given serious consideration to
the present and future health care needs of the residents of the
community served by the Hospital and have determined that it is in
the best interest of the citizens of Denton County for the parties
to enter into this lease; and
WHEREAS, the proposed lease is consistent with the provisions
of the Trust and will assist in fulfilling the purposes of the Trust;
and
WHEREAS, Corporation desires to enter into this lease; and
WHEREAS, the County and the City desire to assure the
availability of hospital care for indigent County residents, and
corporation is willing to provide hospital care for indigent persons
upon the terms and subject to the conditions set forth herein; and
WHEREAS# the lease agreement is designed to provide for the
continued existence and viability of plow Memorial Hospital for the
benefit of the City of Denton and Denton County, Texas, and the lease
arrangement is believed to be in the best interest of said Hospital
and the people of Denton and Denton County;
NOW THEREFORE, in consideration of the foregoing and of the
mutual covenants and agreements contained herein, the parties hereto
covenant and agree as followst
V /
ARTICL$ 1.
DRFINITIOdS
1.1. Tess Defined. For all purposes of this tease, ea3ept as
otherwise expressly provided or unless
requires: the context otherwise
A. The terms defined in this Article hawe the meanings
assigned to then in this Article and include the plural as well
as the singular.
B. All accounting terms not otherwise defined herein
ha!+s the meanings assigned to them, and all computations herein
pr,Wided for shall be made, in accordance with generally accepted
adcounting principles.
C. All references herein to "generally accepted
accounting principles refer to such principles.es they exist
on the date of applicability thereof.
D. All references in this instrument to designated
"Articles," "Sections", "Exhibits", and other provisions are
to the designated Articles, Sections, Exhibits, and other
provisions of this instrument.
E. The words "herein", "hereof", and "hereunder" and
other words of similes importance refer to this Lease as a whole
and not any particular Article, Section, or other subdivision.
As used in this Lease, the following terms shall have the
following meanings unless the context clearly otherwise requires:
"Act" means the Article 4494i-1, Vmrnon's Texas Civil Statutes,
as the same has been heretofore and may be hereafter amended.
"Board" deans the Denton County-City of Denton, Texas, Hospital
Board, a public agency and body politic, duly created by the
Commissioners Court of Denton County, Texas, and the governing body
of the City of Denton, and existing under and by virtue of the Act,
and its successors and assigns.
"City" means the City of Denton, Texas, acting by and through
its city council.
"Code" means the Internal Revenue Code of 1986. as amended.
"Corporation" means Flow Regional Medical Center, a non-profit
corporation organized and existing under the laws of the State of
Texas, and itf; successors and assigns.
"County" means Denton County, Texas, acting by and through its
Commissioners' Court.
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l1'=v r_;s~" .y z;: I. 1, °'f~f4?,:.~a'•~.-
"Default" mean! those events and defaults speoificd in and
defined in Article 10.
"Fiscal Year" means the period commencing on the first day of
October of any year and ending on the last day of September of the
following calendar year, or such other period commencing on the date
designated by the Corporation and ending one year later, but in no
event may the period hereafter be changed more than once in any
fiscal year period.
"Force Kajeure" means any cause or event not reasonably within
the control of the Corporation, including without limitation-the
following: acts of Gods strikes; lockouts, orders of any kind of
the government of the United States or of the State of Texas or of any
of their departments; agencies, or officials, or civil or military
authoritiesi insurrections; civil disturbances; epidemical plagues;
famines= landslides; lightning; earthquakes; fires; hurricanest
tornadoesi storms; typhoons; cyclones; waterspouts; volcanic
eruptions; floods; washouts; droughtai arrests; a*straints of
government and people; explosions; breakage or accident to machinery
and transmission lines or pipes; or partial or entire failure of
utility services.
"Hospital," "Hospital Facility" or "Hospital Facilities" means
the Leased Land, any buildings, improvements, and fixtures located
on the Leased Land on the date of this Lease, all buildings,
improvements, and fixtures constructed on the Leased Land after the
date of this Lease by the Corporation, and all equipment, furniture
and fixtures located thereon or tharsin on the date of this Lease
and used or useful for hospital purposes, and all substitutions and
replacements of such equipment, furniture and fixtures (but not
additions thereto) including all assets shown on the balance sheet
of the Hospital dated as of November 30, 1986, as well as all
intangible properties such as rights to trade names, and all books
and racords regarding the foregoing.
"Lease" means this hospital lease agreement dated as of December
15, 1906, between the Lessors and the Corporation.
"Leased Land" means the real estate described in Exhibit A
hereto and which is aubject to this Lease, including any land which
may be added thereto by agreement of the parties and approved by the
City and County.
"Net proceeds" when used with respect to any insurance or
condemnation award, means the gross proceeds from the insurance or
condemnation award with respect to which that term is used remaining
after payment of all expenses (including attorneys' fees and expenses)
incurred in the collection of such gross proceeds.
"Opinion of Counsel" means a written opinion of counsel who may
(except as otherwise expressly provided in this Lease) be counsel
for one or more of the City, County, Trust, Board or the Corporation.
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"own Expense" or "own cost and expense", when reference is made
to payments being made or obligations assumed by the Corporation,
the same is payable from any money or properties at any time received
by the Corporation, including any received by reason of the operation
of the Hospital Facilities.
"Permitted Encumbrances" means, as of any particular time, (i)
all liens, encumbrances and other charges existing on the Delivery
Date, (ii) liens for ad valorem taxes and special assessments not
then delinquent, (iii) utility, access, and other segment@ and
rights of way, restrictions, and exceptions that will not materially
lnterfera with or impair the operations being conducted in connec£ion
with the Hospital Facility (or, if no operations are being conducted
therein, the operations for which the Hospital Facility was designed
or last modified), (iv) such minor defects, irregularities,
encumbrances, easements, rights of way, and clouds on title as
normally exist with respect to properties similar in character to
the Hospital Facility and as do not in the aggregate materially
impair the property affected hereby for the purpose for which it
was acquired or is held, (v) subleases permitted by Section
4.22(b)(i), and (vi) liens arising in connection with worker's
compensation, unemployment insurance, taxes, assessments, statutory
obligations or liens, social security legislation, mechanics and
materialmen's liens (to the extent permitted by law) for services
or materials for which payment is not overdue# undetermined liens
and charges incidental to construction, ur other similar charges
. arising in the ordinary course of operation and not overdue or, if
overdue, being contested in good faith and such other liens and
charges at the time required by law as a condition precedent to the
transaction of the health care activities of the Corporation or the
exercise of any privileges or licenses necessary to the Corporation;
provided, if any such liens against real property shall be filed,
that Lessee shall remove or bond such liens within fifteen days,
" son" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated
organisation, or government, or any agency or political subdivision
thereof,
"Trust" shall mean the trust established by by an inter vivos
gift made by M. E. glow on February 14, 1946 and by the will of H. Ee
Flow dated January 17, 1946 and filed for probate on February 8, 1947.
"Written Request" shall mean a request in writing signed by the
President or any Vice President of the Corporation or any other
officer of the Corporation satisfactory to the Board.
ARTICLE 2.
DEMISING CLAUSES AND RENT
10 2.1 Lease of the Hoscita~l Facility. In consideration of the
rentals reserved and of the covenants promises herein contained
to be kept and performed by the Corporation, the Board, the City,
the County, and the Trust hereby lease, let, assign, and set over
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the Hospital Facility to the Corporatioa, and
leases, takes, and accepts the Hospital pacilit a Corporation hereby
Cityp the County and the 'trust for the term y from the Board, the
, the rentalt and on
the covenants and conditions herein set forth b
Encumbrances.
uttSubject to Permitted.
2.2 Lease Term. The lease term for the Hospital Facility shall
commence on the date established in section 2.8 and shall and ;,,t
Midnight on September 30, 2027, unless sooner terminated in accordance
with the provisions of Article 10,
The original lea;.e tdas may be extended for an additional term
of 40 years, conmencir,g October 1, 2027, if the Corporation gives
notice in writing to Lessors of its intentions to extend not less
than 730 calendar ;days prior to October 1, 2027, and if
(a) the Lease has not Laen terminated
10.2(b)t pursuant to Section
r
(b) no default has occurred and'is then continuing which would
entitle Lessors to terminate this Lease pursuant to Section
10.2(b).
2.3 Rent. The Corporation agrees, notwithstanding any other
provisions -othis Lease, to pay rent for the Hospital Facility in
the amount of $10,00 per annum (such sum to be paid in full in advance
on the date of delivery of this Lease and divided equally among the
Board, the City, the County and the Trust), plus the assumption by
the Corporation of all duties and obligations with respect to the
operation of the Hospital Facility as set forth in this Article.
The Corporation further agrees, notwithstanding any other provision
of this Lease other than Section 10.8, to pay the Board rent for the
Hospital Facility by assuming liabilities of Lessors as provided in
Section 2.4 and by providing in-patient and out-patient hospital
services to residents of the City and the County as provided in
Section 2.5. As additional rent, Corporation hereby covenants and
agrees that it wil), continue, during the term of this Lease, to
operate the Hospital on a non-profit basis until the prior written
consent of the County and the City is obtained to ceose such operation,
and will take appropriate action to cause Lessors to be named as
additional insureds on any liability and/or malpractice insurance
policies existing now or hereafter. As further additional rent,
Corporation hereby covenants and agrees to operate the Hospital in
accordance with the purposes of the Trust.
2.4, Liabilities t=o be Assumed. As partial rent, Corporation
shall assume and aq to pay and scharge all liabilities of Lessors
relating to the Hospital existing on the Delivery pate other than
liabilities relating to hospital or medical malpractice claims which
have not been both: (i) asserted against Lessors by the Delivery
Date and (ii) described specifically on a written schedule provided
to Corporation by Lessors not later than the Delivery Date.
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2.5. • vices to be ov ded b C r o ation (a) M As partial
Cents, commencing with the tie v`ry beta, Co . rporation agrees to provide
in Denton, County to persons meeting the eligibility standards
specified in Section 2,5(b) ("Eligible Indigents"), at no charge to
Lessors within the limit& specified below, health care services (the
"Nervioazo) of the types: (M ) provided by the bospltal during the
last full operating year that ended before J10uary 1, 19850 and (ii)
usually and customarily provided by comparable community-based
hospitals in Texas, it is recognised that changing technology and
other factors say make it necessary or desirable from time to time
to change the types of services offered by the Eospital, Prior to
ceasing to provide any of the types of Services, described ab6v*,
Corporation will obtain the approval of the City and the Countyr and
the City W the County agree not to unreasonably withhold their
consent to any such approval, if the City or the County refuse to
give any ouch requested approval, Corporation will be entitled to
submit to a dis,7ute resolution proceeding pursuant to Section 12,12
the quotation of whether such refusal is reasonable, Temporary
interruptions i.n the rendering by Corporation of Pai ticular types
of service because of factors beyond the control of Corporation shall
not be deemed a default under this lease.
(ii) in each fiscal year of Corporations, Corporation will
provide Services to Eligible Indigents with a value determined as
provided in Section 2.5(a) (v) equal to up to the percentage specified
An Section 2,5(a)(iv) (the "Percentage") of the Net Patient Service
Revenues (as defined in Section 2.5(a)(iii)) of Corporation during
Corporation's preceding fiscal year, In the partial fiscal year
commencing on the Delivery bate, the value of Services to be provided
by Corporation pursuant hereto will be up to 34 of a percents.a of
the Net Patient Service Revenues of Corporation during its fiscal
year ended September 30, 1986 equal to the percentage determined by
dividing the number of days remaining in the fiscal year of Corporation
to end September 30, 1987 after the Delivery Date by s65.
(iii) For purposes of this Lease, the term "Gross Patient
Service Revenues" shall mean the gross revenues attributable to
services provided to patients by Corporation and (to the extent of
Corporation's interest therein) any affiliated entities, For
purposes of this Lease, the term "affiliated entitites" shall mean
any corporation or entity owned or controlled by, or otherwise
operated for the benefit of, Corporation which provides medical care,
including but not limited to clinics, ambulatory care units, neo-
natal screening clinics, nursing homes and alcoholism/detoxification
programs. Affiliated entities excludes independent non-owned joint
venturers or partners but includes (to the extent of Corporation's
interest therein) the resulting joint ventures or partnerships. For
purposes of this Lease, the term "Net Patient Service. Revenues" shall
mean the Gross Patient Service Revenues of Corporation less
contractual adjustments (including Medicare and Medicaid, but
excluding adjustments provided for in this Lease with respect to
services rendered to or paid for by the City or the County) and
provisions for doubtful accounts as determined by use of generally
accepted accounting procedures utilised, in a system which recognises
provisions for doubtful accounts and charity allowances as separate
items.
(iv) (At For purposes of this Section 3.5 (a)(iv), the following
terms shall have the indicated meaningst
(I) "increase Year" - Any fiscal year immediately
following a fiscal year during which the Percentage is 31 and the
Gross Patient Service Revenues of Corporation are equal to or greater
than $30 Milliont provided however, no Increase Year shall occur
prior to the fiscal year beginning October 1, 19$8.
(XI) "Decrease Year" Any fiscal year immediately
following a fiscal year during which the Percentage is 41 and the
Gross Patient Service Revenues of Corporation are less than $15
Million.
(R) Initially, the Percentage will be 316 The Percentage
will continue to be 31 until the first. Increase Year`. Beginning
wits: the first Increase Year and continuing thereafter until the
first Decrease Year, the Percentage will be 41. Beginning with the
first Decrease Year and continuing thereafter until another Increase
Year occurs, the percentage will be 31. Thereafter, the Percentage
will be either 31 or 41, determined as followsm once a Percentage
is established, such Percentage shall continua in effect until an
Increase Year or a Decrease Year, as the case may bar has occurred,
at which time the Percentage will be changed (to 31 if it has most
recently been 41r or to 41 if it has most recently been 3i).
(v) In the partial fiscal year commencing on the Delivery Dater
Serv+.ces provided by Corporation will be deemed to have a value equal
to $00 of Corporation's standard charges for such Services in effect
at the time such Services are provided. For each full fiscal year
of Corporation thereafter, the County shall be entitled to choose a
method of valuation (from those specified in the following sentence)
of the Services rendered in such fiscal year by giving written notice
to Corporation at least 30 days prior to the commencement of such
fiscal year. The method of valuation shall be either: (A) 801 of
Corporation's standard charges for the Services provided in effect
at the time such Services are provided or (B) the prospective payment
rates (DROs) for such Services allowed under the Medicare program
as administered by the Health Care Financing Administration of the
United States Department of Health and Human Services.
(b) (i) The eligibility standards utilized by Corporation
pursuant harato will be those established by the Texas Department
of Human Resources pursuant to Section 1.06 of the Indigent Health
Care and Treatment Act, Article 4438f, Vernon's Annotated Texas
Statutes (the "Indigent Health Care Act"), as such eligibility
standards may be changed from time to time, provided however, that
from time to time, upon 60 days notice, the County and the City may
change the eligibility standards to be used by Corporation, if the
change would make the eligibility standards less restrictive. If
the change would sake the standards more restrictivet the County and
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4
f
City and Corporation will follow the procedures set forth in Section
A-3,01 of the Indigent Health Care Act to the extent they are
applicable: otherwise, the City and County will give Corporation 60
days notice Of th(A proposed change. Further provided, however, that
from the Delivery Date until the date notified of a change in
eligibility standards to be used, Corporation will use as eligibility
standards the standards the Hospital used to meet its hill-Burton
obligation during its last full operating year that ended before
January 1, 1985. Not later than the Delivery Dato, the County and
the City will advise Corporation in reasonable detail of the initial
eligibility standards to be utilized.
(ii) In the event that either the City or the County
requests a ohange in eligibility standards and the other governmental
entity does not agree to the change within 30 days after an adopted
resolution of the Commissioners Court requesting a change has been
delivered to the Mayor of th,Q City, or in the case of the City's
seeking a change in eligibility standards, within 30..days after an
adopted resolution of the City Council requesting change in
eligibility standards has been delivered to the County Judge, then
on the 60th day following the adoption of the resolution of the
Ct?mmissioners Court or the City Council, as the case may be, requesting
the change, the eligibility standards will become the minimum
eligibility standards applicable to Denton County under the Indigent
Health Care Act.
time, (during,enorCounty and mal xis nessehoCity hall urs# to review entitled
records
relating to the performance of its obligations hereunder, including
records concerning the satisfaction by persons to whom Services have
been rendered of the applicable eligibility standards and records
relating to Corporation's charges for such Services. Any review by
the County and the City pursuant hereto shall be conducted in such
a► manner as not to unreasonably interfere with Corporation's day-
to-day business.
(d) Nothing in this Lease shall be 'deemed to constitute an
admission by the City that it rys any obligation to provide hospital
or other health care iiervices or funding therefor to residents of
the City or the County. Nothing in this Lease shall be deemed to
constitute an admission by the County that the City does not have
any obligation to provide hospital or other health care services or
funding therefor to residents of the City or the County. It is the
intention of the City and the County that any legal questions regarding
the existence and extent of the City's responsiblity, if any, for
indigent health care are not addressed by this contract.
2,6. Accounting of Indigent Gare Provided by Corporations
Review b Count and Cit . (a) By the tenth working day after the
en o eac wont , orporation shall submit to the County Judge and
the Finance Director of the City an accounting of the hospital care
provided to Indigent Patients who were discharged during that month.
The accounting shall includes (i) the name of each indigent patient
discharged, (ii) a detailed itemized statement (in the form generally
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provided to patients when they are discharged) showing
the charges for care provided to such patient, a statement of
the patient's admitting diagnosis/condition, (iv) documentation in
form mutually satisfactory to the County, the
rNiatipq to such patient's satisfaction of the and Corporation
specified in Section 2.5(b) and (v) a represe stlo~ that all Services
orders bacrountieq were provided pursuant to physicians'
the
will p. Upoa the
information b this request requir the City or the County, Corporation
y
form mutually agreed to by this Cited the County *Ad Cis a orporattionion.
Y and C
(b) Within thirty (30) days of receipt of each monthly
accounting, the County Judge and the Finance Director of the City
will notify Corporation of (1) any patients they determined did not
meat the eligibility requirements set forth in Section 2,5(b), (2)
any Services which were provided that they determine are not eligible
services to be provided indigent persons under Section 2,5(a) and
(3) any charges for Services provided that they' determine are in
excess of permitted amounts. The County Judge and the Finance
Director of the City shall also have authority to object to and to
dispute any portion of the accounting which does not conform to the
requirements of this Lease. Unless the County Judge or the Finance
Director of the City object in writing to Corporation within thirty
(30) days after their receipt of a monthly accounting, the County
and the City shall be deemed to have agreed that the patients covered
thereby met the eligibility requirements not forth in Section 2,5(b)
and to have agreed to the other matters set forth in such accounting,
and they shall not thereafter be entitled to dispute such matters
except to the extent the information contained in such accounting
is based on fraud or misrepresentation and except to the extent of
any clerical errors therein.
(c) Within twenty (20) days after Corporation receives an
objection pursuant to Section 2,6(b), unless the parties mutually
agree to a later time, a representative of Corporation and the County
Judge and the Finance Director of the City or their designated
representatives shall meet to negotiate any matters objected to by
the City or the County. Amounts still in dispute thirty (30) days
after the first meeting between the County Judge, the Finance Director
of the City and Corporation with respect thereto shall not be counted
toward satisfaction of Corporation's obligation pending the results
of a dispute resolution proceeding between the parties conducted
pursuant to section 12,12,
2.7. Third Party Pa ors. Corporation shall attempt to ascertain
whether a person seeking indigent care at the Hospital is eligible
for participation in the Medicaid or Medicare programs or for coverage
by any other third-party payors6 if Corporation determines that
patient may reasonably be eligible for such coverage (said
determination being referred to as the "initial determination"),
than Corporation shall provide that patient with assistance in
• preparing and submitting his application for coverage, if a patient's
eligibility for Medicare or hedicaid has not been determined by the
thirtieth (30th) day after the date of initial determination and if
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the patient meets the eligibility requirements set forth in Section
24(b), Corporation shill be entitled to count Services rendered to
sua> patient toward satisfaction of its obligation under Section
2.'~, sub3ect to the satisfaction by Corporation of its obligations
under Section 2.6 with respect to such patient. If such patient is
later determined to be eligible for Medicare or Medicaid, the
previously credited amounts attributable 'to services rendered to
such patient after the date that such patient became eligible for
Medicare or Medicaid shall be deducted from the value of Services
provided by New Corporation pursuant to Section 2.5.
Corporation agrees to use its best efforts to obtain
reiabursemept from any third-party payor prior to crediting the
provision of service toward its obligation to provide services under
Section 2.5.
" 2.8."Delivery, The delivery of the Hospital Facility (the
Delivery) shall be made and rental xhallr commence to accrue at
12 s Ol a.m. of the day following the closing which shall'take place at
10 o'clock a.m., Denton time, at the Hospital, 1310 Scripture Street,
Denton, Texas, on the tenth business day after the judgment
contemplated by Sections 7.7 and 8.6 has become final and
nonappealable, or on such other date and at such other time and place
as is agreed upon by the parties hereto. The day on which the
Delivery of the Hospital Facility occurs is referred to as the
"Delivery Date." If any of the conditions to the obligations of the
parties to this Lease have not been satisfied or waived by the
Delivery Date, then the party to this Lease that is unable to meet
such condition or conditions shall be entitled to postpone the
Delivery by written notice to the other parties until such condition
has been satisfied (which such party shall seek to cause to happen
at the earliest practicable date) or waived, but the Delivery shall
occur not later than December 31, 19870 unless further extended by
written agreement of the parties to this Lease.
2.9. Execution an iv,f Dsliver~r Documents. Before the
Delivery each party shall cause to be prepare , an at the Delivery
the parties shall execute and deliver, each agreement and instrument
required by this Lease to be so executed and delivered and not
theretofore accomplished. At the Delivery,
(a) The Lessors shall deliver to Corporation possession of the
Hospital Facilities;
(b) Corporation shall deliver to the Lessors an instrument of
assumption relating to the obligations of the Lessors to be assumed
by Corporation pursuiLt to Section 2.4f
(c) Each party also shall execute and deliver such other
appropriate and Customary documents as the other parties reasonably
may request for the purpose of consummating the transaction
contempiated by this Lease.
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A11 actions taken at the Delivery shall be 440404 to have been taken
sistultaneously at the time the last of any such to as is taken or
ccmpieted.
2.10. Further r&L es. After the Delivery, the parties
h
Such ereto shall execute an deliver such additional documents and take
advisable additional actions as may reasonably be deeswd necessary or
by any party in order
contemplated by this Lease, to consasesate the transactions.
a2rIt Z.ll. t and i n nc
hoard, the City, the County, the Trust, an the Corport The
al osy ay'ree
that the corporation shall bear all risk of
damage whole or in part to the Hospital Facility aor destruction
i4cludiag, without limitation, any lass, complete or part thereof
interruption in the use, occupancy, or operation of thheer Hospital
Facility, or any manner of thing which for any reason interferes
with, prevents, or renders burdensome the use or Occupancy of the
Hospital Facility ar the cc*pliance by the Corporation with any of
the terms of this Lease other than ouch occurrence which results in
a breach by Lessors of their obligations contained in Section 10.8.
In furtherance of the foregoing, and except as set forth specifically
herein, but without limiting any of the other provisions of this
Lease, the Corporation agrees that its obligations to pay the rent
and other sums herein provided for and to perform and observe its
other agreements contained herein shall be absolute and unconditiolal
and that the Corporation shall not be entitled to any abatement or
diminution thereof nor to any termination of this Lease by reason
of the fol t.c-wing s
(a) any physical damage to or destruction or condemnation
of the Hospital Facility or any part thereoft or
(b) any interruption or prevention from any cause
whatsoever of the use or occupancy of the Hospital Facility or
any part thereof and or requirement of law, ordinance, rule,
or regulation of any public body or authority having jurisdiction
over the Hospital facility (whether relating to the use or
occupancy of the Hospital Facility or the quality, character,
or condition of the structures, buildings, improvements, or
equipment thereon or otherwise= or
(c) any change in the tax or other laws or administrative
rulings of or administrative actions by the United States of
America, the State of Texas, or any political subdivision or
agency of either thersoft or
(d) Force majeure.
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ARTICLE 3.
REPRESENTATIONS AND WARRANTIES OF CORPORATION
3.1. Or a is do and Good tand n of o Corporation
i• a non-profit corporation duly organ :e , va y existing, and
in good standing under the laws of the State of Texas.
3.2. P war n Muth rity. Corporation has the corporate power
and authority an a ceases and permits required by governmental
authorities to own, lease, and operate its properties and assets and
4 to carry on its business as currently being conducted.
3.3. Authority and Validi X Corporation has the corporate
power and authority to execute, deliver, and perform its obligations
under this Leans and the other agreements and documents executed or
to be executed by it in connection with this Lease, and the execution,
deliverY, and
b
performance Cor Corporation
by of
p this Lease and the other
agreements and documents executed or to be executed byr it.in connection
with this Lease have been duly authorised by all necessary corporate
action.
3.4. Binding Effect. This Lease and the other agreements and
documents executed or to be executed by Corporation in connection
with this Lease have been or will have been duly executed and delivered
by it and are or will be, when executed and delivered, its legal,
valid, and binding obligations, enforceable in accordance with their
terms except that:
(a) enforceability may be limited by bankruptcy, insolvency,
or other similar laws affecting creditors$ rights= and
(b) the availability of certain remedies may be limited by
equitable principles of general applicability.
3.5. Necessary A r als and Consents. Except for approvals
already obta ned or filings or notice* already made or given, no
authorisation, consent, permit, or license or approval of, or
declaration, registration, or filing with, any person or governmental
or regulatory authority or agency is necessary for the execution and
delivery by Corporation of this Lease or the other agreements executed
or to be executed by Corporation in connection with this Lease or
the consummation by it of the transactions contemplated hereby and
thereby.
ARTICLE 4.
COVENANTS OP CORPORATION
Corporation covenants and agrees with Lessors as follows:
4.1. Cooperation. Corporation shall use its best efforts to:
. (a) cooperate with and keep Lessors informed in connection
with this Least=
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{b) proceed promptly to make or ive
applications, notices, requests, and filings to obtain athe necessar
t the earliest
practicable date and, in any event, before the D►slivery Date, the
approvals, authorixations, and consents necessary to consummate the
transactions contemplated by this Leases and
(c) take such actions as Lessors stay reasonably request to
consummate the transactions contemplated by this Lease and diligently
attempt 1!1 satisfy, to the extent within its control, all conditions
precedeu. to its obligations to close this Lease as contemplated in
Section 2.8.
4.2. Caac,_. li_dnas with 8osoita~l qrv and onsr. z u Lion Act (8111-
Burton ct To the extent that F ow Meaor al 00-8-pt-al has any
obligation under any application for federal financial assistance
under the Hospital Survey and Construction hot (42 U.S.C. See. 291,
at. seq.) (the "Hill-Burton Act"), Corporation agrees that it will
use its best efforts to obtain the appropriate state and federal
approval for the lease of the Hospital.. Corporation r*presents that
it is an entity that would have been eligible for the original grant
under the Hill-Burton Act, and it will assume the Hospital's
responsibility for providing the assurances originally given by the
Hospital. The Board of Trustees of Corporation will adopt a resolution
formally assuming such obligations. To the extent that Corporation
is unsuccessful in obtaining such approval, so as to relieve the
Lessors of such obligations, the Corporation agrees to be solely
responsible for liabilities of Lessors relating to the Hospital under
the Hill-Burton Act, Notwithstanding the foregoing, Corporation
agrees to assume any and all obligations and/or liabilities including
expenses of litigation and administrative proceedings, of Lessors,
relating to any recovery attempted or made by the federal government
pursuant to the Hill-Burton Act.
4.3. Maintenance of Cor orate SxisteA a and- Status.
Corporation represents that it is an organ ration deacribedfnction
501(c)(3) of the Internal. Revenue Code of 1986, as amended to the
date hereof (the "Code") , and is exempt from federal income tax under
section 501(x) of the Code. Corporation agrees that it will at all
times maintain its existence as a non-profit corporation and that
it will take no action or suffer any action to be taken by others
which will alter, change, or destroy its status as a non-profit
corporation or its status as an organisation de6cribed in section
501(c)(3) of the Code and exempt from federal income taxation under
section 501(x) of the Code (or any successor sections of a subsequent
federal income tax statute or code).
4.4. No Discrimination. Corporation agrees to make available
Hospital services without discrimination on the ground of race,
color, national origin, or creed.
4.5. Medical Staff. No present member of the Hospital medical
staff shall lose any s aff membership and/or clinical privileges at
the Hospital solely as a result of this Lease,
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t.6. Ar i lc r r t and 8 1 ws
Incorporation and/or t Bylaws o Corpora; The Articles of
Board of Trustees and a Board at Advisors with shall provide for a
and powerss he following structure
(a) the Board of Trustees will consist of nine ambers and
will be entitled to manage the affairs of Corporation
Section 2.16 of the Texas Non-profit Corporation Act, Including tthe
establishment of Hospital policy, participation in long-terms
Strategic planning, and the delegation of day-today management
actions for the Hospital. The Board of Trust*"# ambers will each
serve six-Year terns which will be staggered so that three wemba'rs'
terms expire every two years (initial appointments wi
and 6 year terms; three in each group): ll be for 2,
(b) the Board of Advisors will consist of twenty-eight members
who will advise the Board of Trustees concerning the health care
needs of the region and the affairs of Corporatidn--e No member of
the Board of Advisors will be eligible, to serve simultaneously on
the Board of Trustees. Members of the Board of Advisors will serve
fouryy Xarr slip till erms with the terms of seven members expiring
ever appointments will be for 1, 2, 3 and 4
terms; seven in each group). Members of the Board of Advisors wiear
ll
not be permitted to serve successive terms;
(o) the initial members of the Board of Advisors and the Board
o
in either of f Trustees will be appointed by the City and the Counts~. Vacancies
said boards resignationes orOtherwise$ will created be filled by election by th6 Board
of Advisors; and
(d) the Bylaws of Corporation shall contain a conflict of
interest policy which will prohibit Corporation entering into any
contracts or engaging in any transactions (including those relating
to the purchasing of services, personal property or real property
or which involve any sales commission, broker's commission or finder's
fee) with any member of the Board of Trustees, any relative of any
such member or any business entity of which any such member or
combination of members own or owns lot or more of the equity interest.
In addition, such conflict of interest policy will prohibit
Corporation entering into any such contracts or engaging in any such
transactions with any business entity in which a majority of the
members of the Board of Trustees own any equity interest or with any
business entity of which any member of the Board of Trustees owns
any equity interest unless members of the Board of Trustees who
comprise a majority of such Board and which own no equity interest
of such entity approve such contract or transaction. For purposes
of tkis provisions
(i) the term "business entity" shall mean a toe
proprietorship, partnership, firs, corporation, holding company,
joint-stock company, receivership, trust, or any other entity
recognised in law;
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(ii) a person related in the first
degree conbea sanqreluiniative ty toot asuc membemehrmb `bertheand
] Board Of Trustees s shallrbeldsemed
to
(iii) the term "equity interest" shall scan: (A) with
respect to a corporation, the capital stook thereof, (8) with respect
to a trust, a beneficial interest therein and (C) with respect to a
partnership or any other entity, an interest in the capital or profits
thereof .
4.7. icts, 80 long as it is subject to the
Hill-surtoa Act, Corporation covenants that if it enters into any
agreement, formal or informal, providing for management of the
Hospital or part thereof, the agreement will contain the following
provisions:
(a) Either (i) the Board of Trustees of Corporation
authority to terminate the agreement at any tiw upon re retains
notice to the contractor or (ii) the agreement will'be rsubmitted
promptly to the Department of 86,*I th and Human Services for its
review under its regulations= and in the event the Secretary of
Health and Human Services (the "Secretary") determines that the.
agreement resul,ze in the Hospital ceasing to be a public or non-
profit facility for which a grant could have been made under the
Hill-Burton Act, then the Board of Trustees shall have the right to
terminate the agreement by giving 30 days notice to the contractor=
(b) So employee of the contractor may be a member of the
Corporation's Board of Trusteed
and/or any other provisions required by law to insure that the
management agreement does not affect Corporation's status as a public
or non-profit corporation eligible to receive grants under the Hill-
Burton Act.
4.8. Char es for Additional Hoe ita Services Purchased b
fount and or Cit . To the extent the County or the C ty purchases
ox s respons b e under applicable law for paying for services
provided by Corporation in addition to those Corporation is obligated
to provide pursuant to Section 2.5, the parties agree that the party
requesting or responsible for paying for such services will pay for
the services provided at amounts equal to 801 of Corporation's
standard charger for such services in effect at the time such services
are provided.
419 Ann ai Re its rinancfal tatsment Books and Records.
The Corporal on eovenants that within 150 Fiscal Year it shall furnish to the Lessodays rs a copy the and T
o each
report and such other filings as are required 'Dy of its annual
Service to be filed on an annual basis. by the Internal Revenue
The Corporation furtbdr covenants tl.at it will keep proper books
of record and account in which full, true, and correct entries will
be made of all dealings or transactions of or in relation to the
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business and affairs of the Corporation, in acco~cdance with generally
accepted accounting principles and Within 150 days after the end of
the Viscal Year will furnish to the Lessors an annual audit of the
financial condition of the Corporation wade by a certified public
accountant,
410 ft- r bgrass-atstign husors As. to d o
~TF'. T Corporal on ac now • •s that t or
n to Facility and any and all s eX " n the
iwproveweats or structures thereon
and knows the condition thereof and accepts the same in said couditioa,
that the Lessors have made no warranty, either express or implied,
as to the condition of the nos ital facility or any part thereof or
that the Hospital Facility will be suitable for the Corporation's
purposes or needs, and that the Corporation entering into this Lease
is relying solely upon its own examination thereof.
The Corporation further acknowledges that it has be:~a liven the
opportunity to examine the books and records,,inclu&g9 the ~inancial
inforastion, with respect to the existing Hospital facilities and
that neither the Lessors, the Trust, the City nor the County ~;-js
made any representation or warranty in regard to the save,
4.11 Filin and cord n The Corporation shall file and
record or cause to a led an recorded this Lease,
4.12. Taxes Char es sessment an 0 itiea.
Corporation covenants and agrees, subject to the rror lions o SectioThe
n
4.15 relating to permitted contests, to a or cause to be
(before the same shall become delinquent) and to hold the Board, the
City, the County and the Trust harmless therefroms
(a) all taxes and charges on account of the use, occupancy,
or operation of all or any part of its properties, including
the Hospital Facility, or the income therefrom, including but
not limited to all sales, use, occupation, real, and personal
property traxes, all permit and inspection fees, occupation and
license funs, and all water, gas, electric light, power, sewer
service, refuse disposal, telephone service, or other utility
charges assessed or charged on or against any of such properties,
including the Hospital Facility, or on account of the
Corporation's use or occupancy thereof or the activities
conducted thereon or therein; and
(b) all taxes, assessments, and impositions, general and
special, ordinary and extraordinary, of every nave and kind,
which shall be taxed, levied, imposed, or assessed during the
terra of this Lease upon all or any part of its properties,
incl~iding the Hospital Facility, or the interest of the Lessors
and of the Corporation or either of thew in and to any of the
properties of the Corporation, including the Hospital Facility
and the Corporation's interest in this Lease.
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If under applicable law any sez~h tax
imposition, or assessment may at the , charge, fee, rate
in installments, the Corporation h
may e Option Of touch he a "XX*r be paid
As between the parties hereto, the Corporation
duty of making and filing all statements Osshall have the
required under the applicable law in connecti por~ ay Which such La
be
charge, fee, rate imposition, or on
assessment r4rlati
Corporation Of the Hospital, and the Lessors agree p rooptly n9 to the
to the Corporation any and all notices of or bills in connection
with any such charge, tee;., sate, to forward
Lessors hero b• ion th injumitione or "mass" t * TM
the Leasora, to the exteae C the ~ua* i t r4 o use the
permitted by or necessary under e asap of rant any contest of the amount or validity of any tax, charge Lessors is.
applicable law, in connection with
imposition, or assessment, If the ► fees rate,
regulation at the time in effect shall irions of any law, rule, or
reports to be executed and filed by the Lessors of s shpt~edi or
to be brought by the Lessors, the Lessors shall at h request and
nga
expense of the Corporation execute and file such statements oorreports
or, as the case may be, shall
Lessors shall not be subject to Anyiliabilit h forothe payme but the
costs or expenses in connection therewith, and the CCorpor tion
covenants to ;.ndeaunify and save the Lessors harmless from such costa
and expenses.
Nothing contained herein shall be deemed to constitute an
admission by either the Lessors or the Corporation to any third part
that either the Lessors or the Corporation is ',cable for any tax
charge, fee, ra*_., imposition, or assessment.
].13. Li ns. Subject to the
relating to permitted contests, the Corporation rovisions of n 415
will notccreate.or
permit to be created or remain, and will, at its Own Expense, promptly
discharge all liens, encumbrances, and charges on all or any part
of the Hospital Facility other than permitted Encumbrances.
4.14. Com liance with Orders Ordinances and Other Laws.
Subject to the provons of Sect on 4.15 re at nq to permitted
contests, the Corporation will, at its Own Expense, promptly comply
with all present and future laws, ordinances, rules, regulations
and requirements applicable to the Hospital o.'ever y duly constituted
governmental authority and commission and all orders and decrees of
every court having jurisdiction and the officers thereof of which
it has notice.
4115. permitte~d-_ Contest
required to pay any tax, c i a *IIseasoontororri tion shall net be
to in Section 4.13, nor to remove any `lien, chaige,~oriencumbrance
required to be removed under Section 4613, nor to comply with an
law, ordinance, rule, order, regulation, or regairement referred to
is section 4,i4, so ling as the Corporation shall contest, in good
faith and at its cost and sxpanso, in its own name and behalf or in
the OMM and behalf of the Lessora► the amount or validity thereof,
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in an appropriate manner or by the a
shall operate during the appropriate proceedings which
of or other realisation upo the taxreaiiean prevent he collection
charge, ten, or encumbrance ►o contested, and the sale, forfeiture, fee# rent,
or toss of any of its properties or of the rant or any Portion
thereof, to satisfy the saust provided that no
subject the Lessors such contest shall
to the risk of any liability,
ratters are penQing, the Lessors shall not pay, While any such
be move, or cable to
discharged the m tax, assessment, levy, fee, rent, charge, lien,
or Lis being contested unless the Corporation agrees to
settle such contest. Bach such contest shall be promptly
to the final conclusion (subject to the right of the Coraeruted
atii to
settle any such contest), and in any event the Corporation will save
the Lessors harmless against all losses, and
costs (including attorneys' fees and expense sts inkconnection
therewith). The Lessors agree to cooperate with the corporation,
at the Corporation's cost and expense, in any such contest.
4016. Re airs Maintenance In ectio
Subject to the Corp on s r q is n t event o orations.
destruction, or condemnation as set forth in Article S of this Leafs;
the Corporation will throughout the term of this Lease at its own
cost and expense keep and maintain the Hospital Facility in good and
tenantable repair and working order, reasonable wear and tear and
obsolescence in spite of repair excepted, and in ss reasonably safe
condition as its operation will permit, and will make all necessary
repairs thereto, interior and exterior, structural and nonstructural,
ordinary as well as extraordinary, and foreseen as well as unforeseen,
and all necessary replacements or renewals. The Corporation shall
not permit, commit, or suffer any waste of the whole or any part of
the Hospital Facility and shall not use or permit the use of the
Hospital Facility, or any part thereof, for any unlawful purpose or
permit any nuisance to exist thereon.
The Lessors, through their respective officers, employees,
consultants, and other au"_;orised representatives, upon reasonable
notice, shall have accoss at all reasonable times o the Hospital
Facility for the purpo.te of ascertaining whether the Corporation has
complied with its agreements conta: d in this Lease, The Corporation
shall, upon the request from time to time of tho Lessors, which
request shall not be made except upon reasonable belief that the
Corporation may have violated any of its agreements under the
provisions of this Lease respecting the operation, maintenance, or
repair of the Hospital Facility, cause an insction of the Hospital
Facility to be made by a qualified engineer retained by the Corporation
and acceptable to the Lessors and the Corporation
the Lessors immediately following each such inspectionla repo with
rt of
such engineer setting forth (a) findings as to whether the Hospital
Facility has been maintained in good repair, working order, and
condition and (b) recommendations as to the proper maintenance and
repair of the Hospital Facility during the remainder of the term of
this Lease. If any such r-port shall indicate that the Hospital
Facility has not been maintained in good repair, working order, and
condition in any material respect, the Corporatior shall restore the
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Hospital Facility promptly to good repair, working order, and
condition with all expedition practicable. The cost of any inspection
performed pursuant hereto shall be paid by the Lessors unless the
report relating thereto concludes that the Hospital Facility has not
been maintained in good repair, working order and condition in spne
material respect, in which case the cost thereof shall be paid one-
half by the Lessors and one-half by the Corporation. The lessors
shall never be liable or responsible for any repairs to or maintenance
of the Hospital facility, and the Corporation expressly agrees to
be liable and responsible for the same in accordance With
provisions of this Lessee the
The Corporation shall have the right from time to time at its
sole cost and expense to make additions, alterations, and changes
(hereinafter collectively referred to as alterations") in or to the
Hospital Facility, subject, however, in all cases
conditions: to the following
(a) no alteration of any kind shall be made which would
result in a violation of the provisions of Section 4.3;
(b) no building or buildings constituting a part of the
Hospital Facility shall be demolished or removed which would
substantially impair the operating integrity of the Hospital
Facility taken as a whole nor shall any alteration to the
Hospital Facility be made which would substantially impair the
structural strength, utility, or market value of the Hospital
Facility taken as whole without in each case the prior written
consent of the City, the County and the Trust thereto, which
shall not be unreasonably withheld; and
(c) all alterations to the Hospital Facility shall be
located wholly within the boundary lines of the Leased Land or
any other real estate subsequently leased hereunder and shall
become a part of the Hospital Facility.
with respect to any repairs, construction, restoration,
replacement, or alterations performed upon the Hospital Facility by
the Corporation during the term hereof, in accordance with or as
required by any provisions hereof, the Corporation agrees that:
(i) no work in connection therewith shall be undertaken
until the Corporation shall have procured and paid for, so far
as the same may be required, from time to time, all municipal
and other governmental permits and authorizations of the various
municipal departments and governmental subdivisions having
jurijdiction;
(ii) all work in connection therewith shall be done with
due diligence (taking into account the occurrence of any Force
Majeure.)'and in good workmanlike manner and in compliance with
the building and toning laws of the municipality or other
governmental subdivision wherein the Hospital Facility is
situated, and with all laws, ordinances, orders, rules,
it
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regulations, and requirements of all federal, state, and
municipal governments and the appropriate departments,
coasaissions , boards, and officers thereof , and shall not violate
the provisions of any policy of insurance covering the Hospital
Facility, and the work shall be prosecuted with reasonable
dispatch, unavoidable delays excepted= and
(iii) worker's compensation insurance as required by
Texas law covering all persons employed in connection with the
work and with respect to whom death or bodily injury claims
could be asserted against the Lessors, the Corporation, or the
Hospital Facility,_ and general liability insurance
(specifically covering this class of risk) for the mutual benefit
of the Lessors and the Corporation, shall be maintained at the
Corporation's sole cost and expense at aii times when any
substantial work is in process. The general liability insurance
provided for in this paragraph may be effecter! by an appropriate
endorsement, if obtainable, upon the insurance--referred to in
Section 4.18. All such insurance shall be effectod with
financially sound and reputable insurance companies, and, upon
the written request of the Lessors, the Corporation shall deliver
to the Lessors all policies or certificates therefor issued by
the respective insurers endorsed "premium Paid" by the company
or agencies issuing the same or with other evidence of payment
of the premiums satisfactory to the Lessors. The Corporation
shall have the right to receive the proceeds of any such
insurance.
4.0 Provision and Removal of ui ment in the Hog ital
facility. The Corporation shall provide from its Own Expense all
equipment, furnishings, supplies, and other personal property
required for its operation, repair, and maintenance of the Hospital
Facility as required by the Lease.
Except to the extent necessary to comply with the obligation
imposed on the Corporation in Section 2.5, the Lessors shall .,:)t be
unler any obligation to renew, repair, or replace any inadequate,
obsolete, worn out, unsuitable, undesirable, or unnecessary equipment
located in the Hospital Facility. If the Corporation in its sole
discretion determines that any item of such equipment has become
inadequate, obsolete, worn out, unsuitable, undesirable, or
unnecessary, the Corporation may remove such item of such equipment
from the Hospital Facility and sell, trade-in, exchange, or otherwise
dispose of such item (as a whole or, in part) without any responsibility
or accountability to the Lessors therefor, provided that the
Corporation subs►.itutes and installs anywhere in the Hospital
Facility (subject to the provisions of the next sentence of this
Section 4.17) other machinery or equipment having equal or greater
utility (but except as necessary to comply with the obligations set
out in Section 2.5 hereof, not necoosarily having the same function)
in the operation of the Hospital Facilty, and provided further that
such removal and substitution shall not impair the operating viability
of the Hospital Facility. Where the removal of machinery or equipment
will not result in a failure to comply with the obligation set out
-20-.3
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in Section 2.5 hereof, the Corporation shall not be required to
install, other machinery or equipment in substitution for any equipment
removed pursuant to the preceding sentence if, in the reasonable
opinion of management of the Corporation, such substitution is not
necessary to preserve the operating viability of the Hospital Facility
and if the not proceeds from the sale, exchange, or other disposition
of equipment removed pursuant to the proce41ng sentence remain with
and are used in some other manner for the benefit of the Hospital
Facility.
All equipment, fixtures, and other similar capital items of a
depreciable nature purchased by the Corporation in replacement of
or in substitution for similar items located on the Leased Land,
shall immediately become the property of the Lessors and a part of
the Hospital Facility. Notwithstanding the foregoing, any equipment,
fixtures and other similar items of a depreciable nature (but not
including structures and other real property improvements affixed
to the real estate) acquired by the Corporatiod during the term
hereof for use in the Hospital Facilty and not described in the
preceding sentence shall be and remain the property of the Corporation
and may be removed by the Corporation at the termination of this
Lease if such removal may be accomplished without significant damage
to the Hospital Facility.
Notwithstanding any other provision of this Lease, Corporation
shall be entitled at any time, and from time to time, to remove items
of equipment, fixtures, furniture, and other similar capital items
of a depreciable nature (other than structures and other real property
improvements affixed to the real estate) from the Hospital Facility
for use in other operations of the Corporation within Denton County,
provided that (i) the Corporation remains in compliance with the
other provisions of this Lease, (ii) any such items so removed shall
at all times remain fully subject to this Lease, and (iii) Corporation
gives written notice to the City, the County, and the Trust prior
to removal specifying the items to be removed and the place where
such items will be located.
4..L8. Liability and Casualty Insurance. The Corporation
shall maintain the Following insurance during r.he terin of this Lease
at ita sole cost and expense:
(a) Insurance against loss and damage to the Hospital
Facility under a policy or policies covering such risks as are
ordinarily insured against by similar hospitals, including
without limiting the generality of the foregoing, fire,
lightning, windstorms, hail, explosion, riot, riot attending a
strike, civil commotion, damage from aircraft, smoke, and
uniform standard extended coverage and vandalism and malicious
mischief endorsements and, to the extent obtainable and normally
carried by other hospitals in the area, earthquake coverage,
limited only as may be provided in the standard form of such
endorsements at the time in use in the State of Texas. Such
insurance shall be in an amount equal to the full insurable
value of the Hospital Facility, but any such policy may have a
.21-
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deductible amount of not more than $100,000. no policy of
insurance shall be so written that the proceeds thereof will
produce less than the minimum coverage required by the preceding
sentence, by reason of co-insurance provisions or otberwise,
without the prior written consent thereto by the.city, the
County and the Trust, Tho term 'full insurable value" shall
mean the actual replacement cost of the Rospital Facility
(excluding foundation and excavation costa and costs of
underground flues, pipes, drains, and other uninsurable items)
after deduction for physical depreciation, and stall be
determined from time to time at the request eif the Leasose, but
not more frequently than once every three years, by an arcbit&t,
contractor, appraiser, or appraisal company or one of the
insurers, in any case, selected and paid for by the corporation
and approv9d by the Lessors.
(b) Comprehensive general public liability insurance
(including medical malpractice liability` insurance) and
landlord's liability insurance, protecting the Lessors and the
Corporation as their interests may appear, against liability
for injuries to persons and property, occurring on, in, or about
the hospital Facility, with limits of for each
occurrence and in the annual ggregate, an umbrella
coverage in the amount f , and property damage
insurance with a limit of -tor each occurrence and
in the annual aggregates such policies are not
reasons ly available, then each insurance or other provisions
reasonably satisfactory to the Lessors that most nearly provide
protection similar to that herein required;
(c) insurance coverage for boilers, pressure vessels,
auxiliary piping, and selected machinery (pumps and compressors)
with a limit of and with deductible provisions not
exceeding _1
(d) comprehensive automobile liability insurance with
occurrence limits of and one person limit of
property damage coverage with a limit of
and umbrella coverage in the amount of
= if such policies of umbrella coverage are not
reasonMy available, then such insurance or other provisions
reasonably satisfactory to the Lessors that most nearly provide
protection similar to that herein required;
(e) worker's compensation insurance with respect to all
employees of the Corporation in such amount as is customarily
carried by like organisations engaged in like activities of
comparable size and liability exposures provided that the
Corporation may be self-iusured with respect to all or any part
of its liability for worker's compensations
• (f) malpractice insurance, protecting against lsability
for death, in jury, loss, or damage occurring during examination,
diagnosis, treatment, or care of any patient at the hospital
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Facility or any occupant of the Hospital Facility, in the minimum
amount of as to any one occurrence, to the extent of
at least in the aggregate, and umbrella coverage
in the amount o , and with no deductible provisions,
to the extent suci~ P"i`i'M are from time to time reasonably
available; if such policies are not reasonably available, then
such insurance or other provisions reasonably satisfactory to
the Lessors that most nearly provide protection similar to that
herein required= and
(g) fidelity bonds in a minimum amount of on
all officers and employees who have access to or Pa cu`s~ody
of revenues, receipts, or income frce the.gospita.l Facility.
The Corporation shall not be required to carry the comprehensive
general public liability insurance required by subparagraph (b) above
if and to the extent that the Board of Trustees of the Corporation,
upon the recommendation of a nationally recogn4 sed insurance
r. consultant from whom the Corporation does not purchase insurance and
who is not a member of the. Board of Trustees nor an officer or
employee of the Corporation, in good faith determines that the
Corporation shall (i) be self-insured with respect to the liability
referred to therein and create reserves therefor deemed reasonable
by such cot,jultant, (ii) enter into agreements with other hospitals
to achieve such insurance or forms an insurance company with other
hospitals for such purposes, (iii) enter into any agreements with
the State of Texas or the federal government in order to achieve
such insurance, or (iv) take advantage of State of Texas or federal
statutes or laws now or hereafter in existence limiting such
liability. The Corporation shall promptly notify the Lessors if it
decides hot to carry the insurance required by subparagraph (b)
hareof specifying which of the options it has selected under the
provisions of this paragraph. Such option shall be reviewed by such
an independent insurance consultant annually with respect to (i) and
(ii) above and at least once every five years with respect to (iii)
and (iv) above, and a copy of such consultant's report shall be
furnished to the Lessors.
Each policy of insurance obtained pursuant to this Section shall
(i) be issued by a recognized, financially sound, and responsible
insurance company qualified under the laws of the State of Texas to
assume the risks covered by such policy, (ii) name the Lessors and
the Corporation as insureds, as their respective interests may appear,
and (iii) provide that such policy shall not be cancelled without
at least 10 days' prior written notice to each insured named therein.
Any policy obtained pursuant to subparagraph (a) of this Section
shall further provide that any loss thereunder not exceeding $500,000
shall be payable directly to the Corporation, and any loss thereunder
in excess of $5000000 shall be payable to the Lessors notwithstanding
any act of negligence of the Corporation which might otherwise
invalidate said insurance, and the Lessors shall have the exclusive
right to receive the proceeds from such insurance and to receipt for
claims thereunder. ixcept as otherwise provided herein, the
Corporation shall have the right to receive the proceeds from any
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insurance maintained pursuant to subparagraph (b) and (d) of this
Section.
Upon the request from tine to time of the City, the County, the
Trust or the Board, certificates issued by the respective insurers
of the policies provided for in this Section, or copies of such
policies, shall be delivered by the Corporation to the Lessors. If
requested in writing by the Lessors, the Corporation shall furnish
the Lessors with the schedule of premium payment dates and receipted
bills or other evidence satisfactory to the Lessors of the payment
when due of all premiums for all policies of insurance at any time
required to be maintained under the terms of this Lease.
In the event the Corporation shall at any time neglect or refuse
to obtain or maintain the insurance required by this Section, the
L4xsors may, at their option, obtain and maintain such insurance,
acid the Corporation shall be obligated to reimburse the Lessors
promptly for all amounts reasonably expended-in conhiootion therewith.
No acceptance or approval of any insurance policy by the Lessors
shall relieve or release the Corporation from any liability, duty,
or obligation under the provisions of this Lease.
4.19. Lessors' Ri ht to perform G r ors ion' Covenants
A_,dvances. In the event the corporation shall a to ( ) pay any
tax, charge, assessment, or imposition pursuant to Section 4,120
(ii) remove any lien, encumbrance, or charge p
4.13, (iii) maintain the Hospital Facility in repairt to Section
Section 4,160 (iv) pursuant to
procure the insurance required by Section 1.18,
or (v) make any other payment (other than rent) or perform any other
act required to be performed hereunder, then and in each such case
the Lessors may (but shall not be obligated to) remedy such default
for the account of the Corporation and make advances for that purpose.
No such performance or advance shall operate to release the
Corporation from any such default, and any sums so advanced by the
Lessors shall be repayable by the Corporation on demand and shall
bear interest from the date of the advance until repaid at a rate
equal to the lesser of (i) the rate charged by RepublicBank Dallas
N.A., Dallas, Texas, announced from time to time as its "prime rate",
and (ii) the maximum non-usurious interest rate permitted by law.
The Lessors shalt have the right of entry on and into the Hospital
Facility or any part thereof in order to effectuate the purposes of
this Section 4.19.
4.,10. Indemnification of the Lessors. The Corporation
agrees to indemnify and save harmless the Lessors against any and
all losses, injuries, claims, or damages to persons or property,
demands, and expenses, including reasonable legal expenses, of
whatsoever kind and nature and by whomsoever made arising from or
in any manner directly or indirectly growing out of (a) the doe and
occupancy or nonuse of the Hospital Facility or any equipment or
facilities thereon or used in connection therewith by anyone
whomsoever, (b) any repairs, construction, restoration,
replacements, alterations, remodeling on or to the Hospital Facility,
or any part thereof, or any equipment or facilities therein or
5
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thereon, and (c) the condition of the Hospital Facility including
any adjoining sidewalks, ways, or alleys and any equipment or
facilities at any time located thereon or used in connection
therewith. Provided, however, that nothing in this se,,:tion
establishes any obligation of the Corporation to the city,, the county
or the Board to provide hospital or other services to indigents or
to reiaburse the City, the County or the Board for the cost of
providing such services to indigents, other than the obligation
imposed In Section 2.3 hereof.
4.21. Li i Salariogg Wages and of s. The
Lessors shall have no liability or any salary* wage, or n6fit
accruing, due, or payable with respect to the Hospital Facility after
the effective date of this Lease.
4,22. Additions Covenants of the Cor ation. (a) The
Corporation may not, without the prior written consent-of the Trust,
the City and the County;
(1) sell or dispose of any of the properties which
constitute a part of the Hospital Facilities, except as permitted
by Section 4.171
(2) assign this Lease, in whole or in part;
(3) sublet the Hospital Facility, or any part thereof,
except as permitted by paragraph b(l) of this Sections
(4) grant any security interest in any of the property
which constitutes a part of the Hospital Facilities, except as
permitted by paragraph b(2) of this Section;
(S) mortgage or encumber the Leased Land;
(6) merge with any other corporation, if such merger would
result in a violation of Section 4.6 or any other provisions
of this Lease.
(b) The Corporation may:
(1) sublease portions of the Hospital Facilities for the
operation of medical offices, a flower shop, a gift shop, a
pharmacy, a laundry or other activities the Corporation
determines are supportive of and not in competition with
facilities provided by the Hospital; provided, however, that
the Corporation will not enter into any sublease which would
cause it not to be in compliance with the requirements of Section
4.3 of this Lease;
(2) acquire personal property to be a part of the Hospital
Facilities on a lease/purchase or installment sale basis and
grant a security interest to secure the unpaid purchase price.
-25-
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(3) mortgage its leasehold interests provided, however,
that Lessee shall give the City, the County and the Trust written
notice of such mortgage prior to the effective data of any such
mortgage. Notwithstanding the foreg0189, no mortgagee or
trustee or anyone that claims by, through or under a leasehold
Mortgage shall, by virtue thereof, acquire any greater right
in the Hospital facility and in any building or improvements
thereon than Lessee Shen had under this Lease, and provided
further that any leasehold mortgage and the indebtedness secured
thereby stall at all t_moo be and remain inferior and subordinate
to all of the conditions, covenants and obligations of this
Lsase and to all of the rights of the Lessors hereunder.
ARTICLZ 5.
DANAGE, DESTRUCTION, AND CONDEMNATION
s.l. 2ma,,9_e0 0 -Destruction. The Corporation agrees to notify
the Lessors im"Gl ate y in the Case of 'damage exceeding $200,000 in
arsount to, or destruction of, the Hospital Facility reulting from
fire or other cast-,atty. In the event any such damage cn be repaired
within 270 days, the Corporation sill forthwith repair, reconstruct,
and restore the Hospital Facility to substantiitily the same condition
as it existed prior to the event causing such damage and will apply
the Net Proceeds of any insurance relating to such damage received
. by the Corporation to the payment or reimbursement of the costs of
such repair, reconstruction, and restoration.
In the event the Hospital Facility or any portion thereof is
destroyed by fire or other casualty and the damage or destruction
is estimated to require more than 270 days to repair, than the.
Corporation shall within 30 days after such damage or destruction
elect one of the following two options by written notice of such
election to the Lessors:
(a) OptionA~: Re air nd Restoration. The Corporation,
if not in default hereunder, may a ect to repairs reconstruct,
and restore the Hospital Facility. In such event the Corporation
shall proceed forthwith to repair, reconstruct, and restore the
Hospital Facility to substantially the same condition as it
existed prior to the event causing n uch damage or destruction
and will apply the Net Proceeds of any insurance relating to
such damage or destruction received to the payment or
reimbursement of the costs of such repair, reconstruction, and
restoration. So long as the Corporation is .got in default
hereunder, any Net Proceeds of insurance relating to such damage
or destruction received by the Lessors shall be released from
time to time by the Lessors to the Corporation upon the receipt
of the written Request of the corporation executed by its
President or any Vice President jointly with its Treasurer or
any Assistant Treasurer. specifying the expenditures made or
to be made or the indebtedness Acurred in connection with such
repair, reconstruction, and restoration and stating that such
Net Proceeds, together with A61 other money legally available
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for such purposes, will be sufficient to complete such repair,
reconstruction, and restoration.
It is further understood and % reed that in the event the
Corporation shall elect this Option A the Corporation shall
completo at its own Expense the repair, reconstruction, and
restoration of the Hospital Facility, whether or not the Net
Proceeds of insurance received for such purposes are sufficient
to pay for the same.
(b) Option Partial l ilura to RORALE or t re. _The
Corporation, it s not in default ereun r, spay elect to
repair or restore only part of the damage or destruction but
only if concurrently with such election the Corporation shall
deliver to the Lessors a certificate of an inde
to the effect that either (i) the d destroyed
and not re property damaged o or r destroyed
paired or restored is not epsential to the
Corporation's use or occupancy of the Hospital--Pacility, or
(ii) the Hospital Facility has been rE.atored to a condition
substantially equivalent to its condition prior to such damage
or destruction. In such event, the Corporation shall direct
the Lessors to utilise such net proceeds which are not required
for the partial repair and restoration to retire any indebtedness
secured by the property which was destroyed or damaged but only
to the extent of the amount of money which bears the same ratio
to the total property insurance recovery as the value of the
secured property destroyed or damaged bears to the total value
of the property destroyed or damaged. Any remaining funds shall
be allocated to the City, the County and the Trust in accordance
with their percentage interest in the Hospital Facility.
(c} Lion C: Complete, Failure to Re ai .-or Af to •
Drs ri )Rtion Proceeds.
The Corporation, it is-not
default ereun a" dray elect not to repair or restore the property
damaged or destroyed. In such event the Corporation shall
direct the Lessors to utilize such net proceeds to retire any
indebtedness secured by the property, which was destroyed or
damaged but only to the extent of the amount of money which
bears the same ratio to the total property insurance recovery
as the value of the secured property destroyed or damaged bears
to the total value of the property destroyed or damaged. Any
remaining funds shall be allocated to the City, the County and
the Trust in accordance with their percentage interest in the
Hospital Facility.
5.2 ond4hination. This Lease and the interest of the
Corporation therein shall terminate as to the Hospital Facility or
portion thereof condemned or taken for any public or qussi-public
use when title thereto vests in the party condemning or taking the
same (hereinafter referred to as the "termination date"). ' The
Corporation hereby irrevocably assigns to the Lessors all rights,
title, and interest of the Corporation in and to any Not proceeds of
any award, eompenution, or damages thereinafter referred to as an ;L
'awar48), payable in connection with any such condemnation or taking
5
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during the tore hereof. such Net proceeds aRsll be initiall
to the Lessors for disbursement or use as hereinafter provided,
In the event of any such condemnation or taking the Corporation
shall within 90 days after the termination date therefor elect one
of the following two options by written notice of such election to
the Lessors,
(a) option As Rs it and Imp rev nt . The Corporation,
if it is not In default hereunder, may elect to use the N►t
Proceeds of the award made in connection with such Condemnation
or taking for repairs and improvements to the Hospital facility.
In such event, so long as the Corporation is not in default
horeunder, the Corporation shell have the right to receive such
Net Proceeds from time to time upon the receipt by the Lessors
of the Written Request of the Corporation executed by its
President or any vice President jointly with, its Treasurer or
any Assistant Treasurer specifying the expenditares made or to
be made or the indebtedness incurref. in connection with such
repairs ind improvements and stating that such Net Proceeds,
together with any other money legally available for sul-h
purposes, will be sufficient to complato such repairs and
improvements.
Tne Corporation agrees to apply any such Net Proceeds so
received solely to the purposes specified in such written
Request.
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ktion es Partial Failure to Repair or rove. The
Corporation, if it is not in de au t herel.+.nder, may elect to
repair or improve only part of the property condemned or taken
but only if concurrently with such election the Corporation
shall deliver to the Lessors a certificate of an Independent
architect to the effect that either ti> the property condemned
<)r taken and not repaired or improved is not essential to the
Corporation's use or occupancy of the Hospital Facility, or
(ii) the Hospital Facility has been restored to a condition
substantially equivalent to its condition prior to such
condemnation or taking. In such event, the Corporation shall
direct the Lessors to utilize such net proceeds which are not
required for the partial repair and improvement to retire any
indebtedness secured by that property whi.::h was condemned or
taken but only to the extent of the amount of money which bears
the game ratio to the total award made in connection with such
condemnation or taking as the value of the secured property
condemned or taken bears to thos tntal value of the property
condemned or taken. Any remaining funds shall.be allocated to
the City, this County and the Trust in accordance with their
percentage interest in the Hospital Facility.
Icy tion t Com lee Failure to Re it or o
Dist, b t The orporat on, at s not in
din` t hereunder may a eat not to repair or improve the property
condemned or taken In such event the Corporation shall direct
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the Lessors to utilise such net proceeds to retire any
Imlebtedness secured by the property which was e ed or
taken but only to the extent of the amount Of money which bears
the same ratio to the total award made in Connection with such
condemnation or taking as the value of the secured property
condemned or taken bears to the total value o! the property
condemned or taken. Any remaining funds shall be allocated to
the City, the County and the Trust in accordance with their
percentage interest in the Hospital Facility.
The Lessors shall cooperate fully with the Corporation in the
handling and conduct of any prospective cr pending condemation
proceedings with respect to the Rospital facility or any part thereof
and will, to the extent they may lawfully do so, permit the Corporation
to litigate in any such proceeding in the name and on behalf of the
Lessors. Unless an event of default hereunder shall have occurred
and be continuing, the Lessors will not voluntarily settse, or consent
to the settlement of, any prospective or pending., condemnation
pruceed&aigs with respect to the Hospital facility or any part thereof
withk,at the written consent of the Corporation.
5.3 OtUr Provisions with Respect to met Broceedii. The Net
Proceeds of any insurance or condemnation award received by the
Lessors shall, at the Written Request of the Corporation, be deposited
with a corporate trustee in a special trust account and invested or
reinvested-by the trustee in eligible investments for tryst funds,
. subject to the Corporation's right to receive the same pursuant to
Section 5.1(a) and Section 5.2(a) of this Article.
ARTICLB 6.
COVBNANTS, OF LZSSORA
Lessors covenant with Corporation as !,ollowss
6.1, cc sss. During the period pending the Delivery Date,
Lessors uhaaitford to Corporation and to Corporation's officers,
employees, accountants, counsel, and other authorized
representatives full access during regular business hours to its
assets, properties, books, contracts, commitments, and records
(giving due regard to 1,.atient rights and patient confidentiality)
and will furnish or use its best efforts to cause their representatives
to furnish promptly to Corporation and its representatives such
additional financial and operliting data and other documents and
information (certified if requested and reasonably susceptible to
certification) ralating to its business and properties as New
Corporation or its duly authorised representatives may from time to
time reasonably request.
6.2. Notice of an t i 1 Change. Lessors shall, promptly
after the first notice thereof but not later than the Delivery data,
notify Corporation in writing of the occurrence of any event or the
existence of any state of facts that constitutes a material adverse
change in the business, results of operation, working capital, assets, ~
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liabilities, or condition (financial or otherwise) of the Hospital
(compared to such matters as they existed on the date of this Lease).
6.3, Cooperation. Lessors shall use their best efforts tos
(a) proceed promptly to make or give the necessary
applications, notices, requests, and filings to obtain at the sarliesi:
practicable date and, in any event, before the Delivery Date, the
approvals$ authorisations, and consents necessary to consummate the
transactions contemplated by this Leaser
(b) cooperate with and keep Corporation informed in connection
with this Lease; and
(c) take such actions as Corporation may reasonably request
to consummate the transactions contemplated by this Lease and
diligently attempt to satisfy, to the extent within their control,
all conditions precedent to their obligations to effectuate this
Less**
6.4. Conduct of Business Before Delivery Data. During the
period pending the Delivery, Lessores
(a) shall conduct the Hospital's operations in the ordinary
and usual course of business consistent with past and current
practices, and shall use their best efforts to maintain and preserve
intact its business organisation and goodwill, to retain the services
of its key employees, and to maintain satisfactory relationships
with suppliers, distributors, p&%Aents, and others having business
relationships with the Hospital;
(b) shall confer on a regular and frequent basis with one or
more representatives of Corporation to report material operational
matters and the general status of ongoing operations; and
(c) shall notify Corporation of any emergency or other change.
in the normal course of the Hospital's business and of any governmental
complaint , investigations, or hearingo (or communications
indicating that the same may be contemplated) if such smergency,
change, complaint, investigation, or hearing would be maOrial to
the Hospital's business or properties.
6.5 Restriction on Agreements Affecting Lease and Hos ital.
Facility. The Lessors agree that, to long as the Corporation is not
in default hereunder, they will not enter into any other contract
or agreement ( i ) ofi cting this Lease, the rentals payable hereunder,
or the Hospital Facility in any way, or (ii) assigning the same as
security for any obligations of the Lessors without the prior written
consent of the Corporation,
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ARTICLE 7*
CONDMOi1S PRECEDENT TO
OBLIGATIONS Of LESSORS
Except as may be waived by Lessors, the obligations of Lessors
to consummate the transactions contemplated by this Lease shall be
subject to the satisfaction an or before the Delivery Date of each
of that following conditions:
7.A.. Congo. Corporation shall have, or shall have caused
to be, satisfied or complied with and performed in all material
respects ail terms, covenants, and conditions of this Lease to be
complied with or- performed by it on or before the Delivery Date.
7.2 R re ntati s and ma rand s. All of the representations
and warranties made by Corporation in this Lease and in all
oertifteates and other documents delivered by Corporation to Lessors
pursuait hereto or in connection with the transactions contemplated
hereby' shall have been true and correct in all material respects as
of th', date hereof or `thereof and shall be true and correct in all
material respects at the Delivery Dante with the same force and effect
as it such representations and warranties had been made at and as of
the Delivery Date, except for changes permitted or contemplated
hereby or thereby.
7.3. Absence of Liti atit;n. No order, judgment, or decree by
any court or governments agency it authority shall be in effect
that enjoins, restrains, or prot;ibits the consummation of the
transactions contemplated by this Lease,
7.4. BY1ow4. The Bylaws of Corporation shall contain the
provisions required by Section 4.6 hereof.
7.5. Appointment of Trusts s and Advisors, The initial members
of the Board o Trustees and the Board o Advisors of Corporation
described in the Bylaws provided for in Section 4.6 hereof shall
have been appointed by the County and the City.
7.6. Licenses and Permits. Corporation shall have obtained all
permits and licenses required by governmental authorities to own and
operate the Hospital and to carry c.► the business of the Hospital
as pre^ently being conducted.
7.7. Declaratory Jud went, A final., non-appealable judgment
shall have been renders by a court of competent jurisdiction
upholding the legality of. this Lease covering such matters as may
be reasonably requested by Lessors.
7.8. Prior Indebtedness. The holders of the Board's $290,000
Hospital Boor Rivenue sonde - Series 1975 and $280,000 Hospital
Board Revenge Bonds - Series 1975-A shall have agreed to release the
County and the City from any liability with respect thereto or such
bonds shall have been paid in lull.
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7090 "Proval b too Cgunty an t . The Commissioners
Court of the Coenty and t City Council o the City shall each have
approved this Less* and the transactions contemplated herein in
appropriate proceaaings,complyinq with all applicable laws.
ARTICLE 8.
CONDITIONS PRECEDENT TO
OBLIGATIONS OF CORPORATION
Except as may be waived by Corporatia., the obligations of
Corporation to consummate the transactions contemplated by this Lease
shall be subject to the satisfaction on or before the. Delivery bate,
of each of the following conditions:
8.1. Coat a . Lessors shall have, or shall have caused to
be, satisfLs or with and performed.in all,material respects
all terms, covenants, and conditions of this Lease"to be complied
with or performed by them on or before the Delivery Date.
8.1. Consents to Transaction. Lessors and Corporation shall
have receive all consents or approvals, and made all applications,
requests, notices, and filings with, any persons, governmental
authority, or governmental agency required to be obtained or made
in connection with the consummation of the transactions contemplated
by this Lease.
8.3. Absence of Litigation. No order, judgment, or decree by
any court or governmental agency or authority shall be in effect
that enjoins, restrains, or prohibits the consummation of the
transactions contemplated by this Lease or, in the soles judgment of
Corporation, otherwise would materially interfere with the operation
of the assets and business of the Hospital after the Delivery Data.
8.4. Material Adverse Changes. No material adverse change in
the business, properties, assets# abilities, results of operations,
or condition, financial or otherwise, of the Hospital shall have
occurred.
8.5. Licenses and Permits. Corporation shall have obtained all
permits and licenses required by governmental authorities to own and
operate the Hospital, and to carry on the business of the Hospital
as presently being conducted.
8.6. Declaratory Judgment. A final, non-appealable judgment
shall nave been rendered by a court of competent jurisdiction
upholding the legality of this Lease covering such matters as may
be reasonably requested by Corporation.
8.7. A roval the County and the City. The Commissioners
Court of the County and the City Council o the City shall each have
approved this Lease and the transactions contemplated herein in
appropriate proceedings complying with all applicable laws.
-32-
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ARTICLE 9,
RNPLOYMM
9.1. Trans_frer of ~c QvXW, On and as of the Delivery Oats,
all employees who were on such date employed at the Hospital shat:
became employees of Corporation. Where will be no loss in status
(e,g., job description, job classifications, etc.) or seniority of
Hospital employees, solely by isason of this Lease, at the time they
became employees of Corporation. In addition, all Hospital employees
wil~ be transferred to Corporation at the existing or a higher
salary/pay scale. This provision shall not affect Corporation's
rights to make decisions with respect tz~ its employees in the ordinary
course of its business after the Delivery.
9.2. Trans er of Ho ital Service. From the Delivery Date, the
seniority o Ho:,pita employees w Li based upon their original
date of hire at the Hospital and those years of service will be
carried forward and count toward years of service'Wtth Corporation..
9.3, j~it fn d Sick Leave and Vacation Timme. On and as of the
Delivery Date, sick eave an vacation time accumulated by the
Hospital employees will be transferred and honored by Corporation.
ARTICLE 10.
. DEFAULT$ AND REMEDIES
10.1. Lessors' Defaultsl Corporation's Remedies.
(a) Lessors' Defaults. Lessors shall be deemed to be in default
hereunder upon the occurronce of any one or more of the following
eventsj
(i) Lessors fail, to meat, comply with, or perform any
covenant, agreement, or obligation on their part required within the
time limits and in the manner required in this Lease.
(b) Corporation's Remedies. If Lessors are deemed to be in
default hereunder Corporation may, at its sole option, do any one
of the followings
(i) Terminate this Lease by written notice delivered to
Lessors on or before the Delivery Date.
(ii) Enforce specific performance of this Lease against
Lessors.
(iii) Exercise any other right or remedy Corporation may
have at law or in equity for recovery of amounts owed to Corporation
by the County or the City pursuant to Section 4.9.
1
1a
-33-
kk
a 1012. Corporation's Defaultt >Lessors' R, ies,
In (a) corporations Default. Corporation shall be deemed to be
default hereunder upon t e occurre,ice of any one or more of the
following eventss
(i) if the Corporation fails to pay when due any rent or
any other sus payable by the Corporation under this Leaser
t} ry ,~*c~3'•=-5"~. `"~-~„~T ~cs`Y °+Sqr ~ '^~a ~r "'=-e 1 ..zs. u,:"•ry+,~x.a: •=z. #°sz s'°
provided, however, that in the event the Lessors conclude that
there has been a failure to pay rent or other sum when due,
Lessors will notify Corporation of the alleged failure, by
registered or certified mail, and Corporation shall have thirty
(30) days within which to cure the .alleged failure. In the
event that there is a dispute regarding whether there has been
a failure to pay rent or any other sus, any party shall be
entitled, during said 30 day period, to invoke than dispute,
resolution process set out in Section 12.12 hereof by giving
notice to the other parties during said 30-dam period, and a
default will not be deemed to have occurred until thirty (30)
days after the arbitrator or arbitrators. appointed pursuant to
section 12.12 has issued a ruling to the effect that the
Corporation has failed to pay rent or other sum require3 pursuant
to this Lease= or
(ii) if the Corporation fails to perform any other
covenant, condition, or provision kereof and to remedy such
default within sixty (60) days after .notice thereof by registered
or certified mail from the Trust, the City or the County
specifying such default and stating that such notice is a "Notice
of Default'", unless the nature of the default is such that it
cannot, with reasonable and diligent effort, be remedied within
the 60-day period, then if the Corporation comences to cure
the default within this 60-day period, the cure period shall
be extended until such time as the Corporation ceases to use
diligent efforts to cure such a default. In the event that
there is a dispute regarding whether there is a failure in any
material respect to perform any covenant, condition or
provisions hereon, other than the payment of any rent or other
sum covered by Section 10.2(a)(i) above, then within 60 days
after the Corporation has been notified of an alleged failure
any party ohall be entitled to invoke the dispute resolution
process set out in Section 12.12 hereof, and a default will not
be deemed to have occurred until 60 days after the arbitrator
or arbitrators appointed pursuant to Section 12.12 has issued
a ruling to the effect that the Corporation has failed in any
material respect to perform a covenant, condition or provision
hereof, except that in the case of a default which cannot, with
reasonable and diligent effort, be remedied within a 60 day
period, default will not be, deemed to have occurred until such
time after the expiration of the 60 day period frooa the date of
the ruling that Corporation ceases to make diligent efforts to
cure the default] or
a
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I
1779 ~Wf, ME
~~7 F
if the Corporation admits in writing insolvency or
aankruptcy or its inability to Pay its debts as thqy mature,
or &&keg a general assignment for the benefit of ceditors. or
applies for or consents to the appointment of a trustee,
r*cieivert or custodian for the CorporatLonp or for the major
part of its property; or
(iv) if a trustee, receiver, or custodian is appointed for
the Corporation or for the major part of Its property and is
not discharged within 60 days after such appointmentl or
(v) if bankruptoys reorganination, arrangemint,
insolvency, or liquidation proceedingar or other proceedings
for relief under say bankruptcy law or similar law for the
relief of debtors. or* instituted by or against tho Corporation
are allowed against the Corporation or are consented to or are
not dismissed, stayede or otherwise nullified within 60 days
after such institution,
(b) 4esso a' Remedios, If Corporation is doomed to be in
default hereunder,1issors may, at Lessors' sole option, do any of
the followingt
(i) the Lessors may terminate this Lease by giving to the
Corporation written notice of the Lessors' intention so to dot
in which event the term of this Lease shall end# and all right
and interest of the Corporation hereunder shall expire* on the
date stated in such notice,. which shall not be less than 10
days after the date of the notice by the Levs4.rs of their
intention so to terminate; or
(ii) the Lessors may terminate the right of the Co?~poration
to possession of the Hospital Facility or any portiot thereof
by giving written notice to the Corporat'6~ chat the
Corporation's right of possession shall end on t". date etated
in sucii noticot which shall not be lose than 10 days After the
dot* of the notice by the Lessors of its intention so to
teritinate) or
(iii) the Lessors may 6nforce the provisions of this Lease
and may enforce and protect the rights of the Lessors hereunder
byA suit or suits In equityorat lawfor the epecific performance
of any covenant or agreement contained herein or for the
enforcement of any other appropriate legal or equitable remedy.
10,3 Risht of Re-Entry, if the Lessors exercise either of the
re"dies piovided for in subparagraphs (i) or (ii) of Section 10.2(b)t
the Lessors may then or at any time thereafter effectuate re-ontry
on the Hospital. Facility in accordance with the then applicable
Provisions of Texas law,
10,4 awt to Rt-S;J!UM8e If the Lessocs terminate the
Corporation's right at possession pursuant to subparagraph (b) of J
Section 10.2p the Losuors may to-entor the Hospital Facility or any
4 1 1
y r v r uv,
qr~
ti. a i}yg, aG 'KAr ¢i yf.~.. R''Y s j;; t- .y3` s > '77 173
1,, y a `A w, y "t as •n'r.. - Y:.5 .
9 i
a .2.
portion thereof and take possession of a:l or any portion thereof,X
may remove any portion of the machinery or apparatus thereon which
the Lessors elect so to do, ,end may re-sublet th* Hospital Facility
or any part thereof from time to turf; for all or any part of the
unexpired part of the then term hereof, or for a longer period, and
the Lessors may collect the rent iron such re-subletting and apply
the same, first, to the payment of the expense of re-entry and re-
subletting, and second, to the payment of the rent payable hereunder,
and, in the event that the proceeds from such re-subletting are not
sufficient to pay in full the foregoing, the Corporation shall remain
and be liable therefor, and the Corporation promises and agrees to
pay the amount of any such deficiency from time to time and the
Lessors may at any time and from time to time sue and recover judgment
for any such deficiency or deficiences.
10.5 Damages in the Event of Termination. In the event of the
termination of-E-515 Lease by the Lessors ru suagt to subparagraph
(b) of Section 10.2, the Lessors shall, be entitled to recover from
the Corporation all the rentals accrued and unpaid for the period up
to and Including such termination date, as well as all other additional
rentals and other sums payable by the Corporation, or for which the
Corporation 4s liable or in respect of which the Corporation under
any of the provisions hereof has agreed to indemnify the Lessors,
which may be then owing and unpaid, and all legally provable costs
and expenses.
10.6 No Remedy Exclusive. No remedy herein concurred upon or
reserved to the Lessors is -intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall
be cumulative and shell be in addition to every other remedy given
under this Lease or no4 or hereafter existing at law or in equity or
by rr L.tute. No delay or omission to exercise any right or power
accruing upon the occurrence of any Event of Default shall impair
any such right or power or shall be construed to be a waiver thereof,
but any such right and power may be exercised from time to time and
ae often as may be deemed expedient. in order tr, entitle the Lessors
to exercise any remedy reserved to it in this Article, it shall not
be necessary to give any notice, other than such notice as may be
herein expressly required.
10.7 No Additional Waiver Implied by One Waiver. In the event
the breach of any agreement contained in this Leas should t1 waived
by either party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other breach
hereunder.
10.6 Corooration's Right of possession and vse of Hospital
Faci lit Y& Except as permitted by Section 1.16, so long es the
Corporation is in full compliance with the terms and provisions of
this Lease, Lessors covenant that the Corporation shall be entitled
to possucs, use, operate, and enjoy the properties and appurtenances
constituting the Hospital Facility without interference fromt or
entry on the Hospital racility by, and free from claims of, the Lessors
or persons claiming by, through, or under then.
-]i- A:
y
;
r r •,~.,,.c <.,~r?st"'F "``.urFgy{P,wtta.-, .sM+H 2r€3 1'e^ ?w;-~ y.:_", `;fie' ='gT{
fi
MV6
ARTICLE 11.
TERNINATIQN
11.1. Terrain tion of Isoale Prig to a
v r ate. This
Leese and the txarrsact ons contemp aced here Y may be tern nated at
any time on or before the Delivery Date:
(a) by mutual consent of Lessors and Corporation=
(b) by Corporation if there has been any material failure on
the part of Lessors to comply with their obligations hereunderi
(c) by Lessors if there has been a material misrepresentation
or breach of warranty in the representations and watranties of
Corporation set forth herein or if there has been any Aterial failure
on the part of Corporation to comply with its obligations hereunder:
and
(d) by either Corporation or Lessors if the conditions
precedent to its obligations to effectuate the delivery of the
Hospital Facility pursuant to this Leese have not been satisfied or
waived by it at or before the Delivery Date,
11.2. Termination of Lease. Unless teriainated earlier
pursuant to via preceding Article, this Lease shall terminate on the
date set fortis in Section 1.1, unlers extended as provided therein,
in which case this Lease shall terminate on the last day of the
extension term. Upon termination, the Corporation acknowledges that
the Hospital Fa%;llity will co.itinue to bd the property of the County,
the City, the Trust and the Board.
on the last day of the term hereof or on the earlier termination
hereof, the Corporation shall peaceably and quietly leave, surrender,
and deliver up the Hospital Facility to the Lessors. The buildings
or any new building and all alterations, changes, and improvements,
which may have been made upon the Leased Land (including movable
furniture or movable trade fixtures which are replacements or
substitutes, put in at the expense of the Corporation), shall be
broom-clean, in thorough repair and good order, and in safe condition,
reasonable gear and tear and obsolescence in spite of repair excepted.
If the Hospital Facility is not so surrendered, the Corporation shall
wake good to the Lessors all damage which the Lessors sht,il suffer
by reason thereof aria in addition shall indemnify the Lessors from
and against all claims made by any succeeding tenant against the
Lessors founded upon delay by the Corporation in del ivering possession
of the premises to such succeeding tenant, so far as such delay is
occasioned by the failure of the Corporation to surrender the
premises.
s .
In the event the Corporation remains in possession of the
Hospital Facility after the termination of this Leass, howsoever
such termination may be brought about, such holding over on the part
of the Corporation, shall be deemed to be occupying and using the
Hospital facility at the sufferance of the Lessors, sub3oct to all '
• .37 a.
r~~ti. 4„^~ `~•Ai-=Y'.+ tl ~i1rt J4 y; { l~ rE 1 , 4 y)d ~~(v ~Y,w4 t ,.~~{yi,~ Pr '~i.f~r, 'tid{"e
of the terms, conditions, provisions, and obligations of this Lease
(insofar as same are applicable to such form it tenancy).
Upon final surrender of possession, any mv„ -amair►ing
in the hands of the Corporation shall be conclusive,., d to
have been accumulated from the operation of the Hospital raoA.. 'wies
and shall be available first to satisfy any obligation c. so
Corporation hereunder and then shall belong and be paid to
Corporation.
ARTICLE 12.
MISCELLANEOUS
12.1. Expenses. Each party hereto shall pay its own expenses
incurred in connect on with this Lease and the transactions
contemplated hereby.
12.2. Entire Agreement. This. Lease, the exhibits hereto,
and the other documents executed or delivered pursuant hereto contain
the complete agreement among the parties with respect to the
transactions contemplated hereby and supersede all prior agreements
and understandings amonq the parties with respect to suc.i
transactions. Section and other headings are for reference puxposes
only and shall not affect the interpretation or construction of this
Lease. The parties hereto have not made any representation or
warranty except as expressly set forth in this Lease or in any other
document executed or delivered pursuant hereto.
12.3. Counterparts. This Lease may be executed in any
number of counterparts, each of which when so executed and delivered
shall be deemed an original, and such counterparts togetheL shall
constitute only one original.
12.4. Notices. All notices, demands, requests, or other
communications that may be or are required to be given, served, or
sent by any party to any other party pursuant to this Lease shall be
in writing and shall bemailed by first class, registered, or certified
mail, return receipt requested, postage prepaid, or transmitted by
hand delivery, telegram, or telex, addressed as follows:
If to Lessors: County of Denton, Texas
401 W. Hickory
Denton, Texas 76201
Attention: County Judge
0
.38-
r..
Citv of Denton, Texas
Municipal Building
Denton, Texas 76201
Attention: City Attorney
Board of Directors
Flow Memorial Hospital
1310 Scripture Street
Denton, Texas 76201
H. E. Flow Trust
Denton, Texas
with a copy (which Mr. C. Robert Heath
shall not constitute ei.ckerstaff, Heath & Smiley
notice) to: 400 West 15th Street
United Bank Tower, Suite 1;19
Austin, Texas 78701
If to Corporations Flow Regional Medical
Center
c/o: President
218 North Elm Street
Denton, Texas 76202
with a copy (which Mr. M. Douglas Adkins or
shall not constitute Mr. C. Robert Butterfield
notice) to: Gardere & Wynne
1500 Diamond Shamrock Tower
Dallas, Texas 75201
Each party may designate by notice in writing a new address to which
and notice, demand, request, or communication may thereafter be so
given, served, or sent. Each notice, demand, request, or
communication that is mailed, delivered, or transmitted in the manner
described above shall be deemed sutflciently given, served, sent,
and received for all purposes at such time as it is delivered to the
addressee (wich the return receipt, the deiivery receipt, the
affidavit of messenger, or (with respect to a telex) the answerback
being deemed conclusive evidence of such delivery) or at such time
as delivery is refused by the addressee upon presentation.
12.5. Successors and Assigns. This Lease and the rights,
interests, and obligations hereunder shall be binding upon and shall
inure to the benefit of the parties hereto and their heirs, personal
representatives, successors, and assigns.
-39-
12.6. Governing Law. This Lease shall be construed
in accordance with the laws of the State of Texas and enforced
12.7. Waiver and Other Action. This Lease may be amended,
modified, or supplemented only by a written instrument executed by
the parties against which enforcement of the amendment, modification,
or supplement is sought.
12.8. Severabllity. If any provision of this Lease is held to
be illegal, invalid, or unenforceable, such provision shall ba fully
severable, and this Lease shall be construed F.nd enforced as if such
illegal, invalid, or unenforceable provision were never a pa. hereof1
the remaining provisions hereof shall remain in full force and effect
and shall not be affected by the illegal, invalid, or unenforceable
provision or, by its severance, and in lieu of such illegal, invalid,
or unenforceable provision, there shall be added' automatically as
part of thiz~ Lease, a provision as similar in its terms to such
illegal, invalid, or unenforceable provision as may be possible and
be legal, valid, and enforceable.
12.9. Survival of Representations and Warranties. Each
represent4tion or warranty made by any party hereto shall survive
the closing of the transactions contemplated hereby.
12.10. Certain Persons Not Liable. Neither the governing
bodies not any officer or employee of the Board, the City, the County,
the Trust or Corporation shall be personally liable for the payment
of any sum or for the performance of any obligation under, this
Lease. Tne officers, governing bodies, agents, trustees, and
emplt,.c_s of the Board, the City, the County, the Trust and Corporation
shall have no personal liability for any costs, losses, damages, or
liabilities caused or subsequently incurred by any of the parties
hereto or any officer, director, agent, or employees of any thereof
in connection with or as a result of this Lease.
12.11. Limitation on Liability. All obligations of the Lessors
expressed or implied in this tease or otherwise incurred in connection
with the Assets for the payment of money or for damages resulting
from any misrepresentation or breach of any covenant, undertaking,
agreement, or warranty shall be limited so as to comply with all
applicable laws.
12.12. Dispute Resolution Proceedings. (a) In the event a
party shall be entitled under the provisions of this Lease to resolve
any dispute pursuant to this Section 12.12, such party shall be
entitled to institute an arbitration proceeding with respect thereto.
Any such arbitration proceedings shall be: (i) commenced promptly,
(ii) binding upon the parties hereto, and (iii) subject to the Texas
General Arbitration Act, Tex. Rev. Civ. Stat., Articles 221, et seq.
and, to the extent not inconsistent therewith, conducted in accordance
.40-
with the rules of the American Arbitration Association by an
arbitrator selected from a panel selected by such Association. The
parties agree to cooperate in good faith to conclude any such
arbitration proceedings expeditiously. Attorney fees and/or costs
of the arbitration proceeding may be awarded to the prevailing party
if the arbitrator determines that the other party did not act in
good faith with respect to the disputed claim.
(b) At any time a party is entitled to submit a question to
arbitration, the parties who would be involved in such arbitration
proceeding may, by mutual agreement, agree to an alternate method
of resolving the matters at issue.
12.13. References. Unless otherwise indicated, all references
in this Lease to Sections or Articles are to the Sections and Articles,
respectively, of this Lease.
12.14. Holidays. If any date for the payment of any installment
of rent hereunder is not a Business Day, then such payment shall be
due on the first Business Day thereafter.
IN WITNESS WHEREOF, the parties hereto have executed this Lease
as of the day and year first above written.
COUNTY OF DENfiON, TEXAS BOARD OF DIRECTORS OF
FLOW MEMORIAL HOSPITAL
BY: BY:
CITY OF DENTON, TEXAS FLOW REGIONAL MEDICAL CENTER
BY: BY:
H. E. FLOW TRUST
BY:
JURATS
THE STATE OF TEXAS S
S
COUNTY OF DENTON S
-41-
r
I, the undersigned, County Clerk of Denton County, Texas, hereby
certify that the foregoing instrument of writing, dated as of the
first day of , with its certificates of
authentication, was filed for record in my officer on the day
of ► 1986, at o'clock Met and duly recorded
in the Dead Records of sa fd County, in Book
► at Page
WITNESS MY OFFICIAL HAND AND SEAL OF OFFICS► this the day
of ► 1986.
[SEAL]
County C ark.,
Denton County, Texas
.42-
'v
~I
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
T0: Honorable Mayor $ Members of the City Council
FROM: Debra A. Drayovitch, City Attorney
SUBJECT: Resolution Adopting Eligibility Standards Pursuant
to Lease of Flow Memorial Hospital
DATE: December 10, 1986
Attached herewith is a resolution adopting initial, eligibility
standards as contemplated by the Asset Transfer Agreement and
now, by the lease agreement with Flow Regional Medical Center.
It is identical to the standards established by the
Commissioner's Court in October.
You will reca~l we have discussed this matter previously and I
have transmitted a memorandum relating to this matter under
separate cover.
Should you-have any questions, I would be pleased to respond.
J
Respectfully submitted,
DEBRA A. DRAYOVV
/DAD : j s
✓ xc: Lloyd V. Harrell, City Manager
Attachment
16SSL
R E S O L U T I O N
WHEREAS, the Lease Agreement among Flow Regional Medical
Center, the County of Denton, Texas, the City of Denton, Texas
and the Board of Directors of Flow Memorial Hospital requires
the County of Denton and the City of Denton to advise the New
Corporation of the initial eligibility standards to be utilized
in determining the value of services to be provided to indigent
patients; and
WHEREAS, Article 4438f, Vernon's Annotated Texas Statutes,
the Indigent Health Care and Treatment Act, defines the
responsibility of counties to provide health care services to
indigent residents; and
WHEREAS, said Article 4438f, V.A.T.S., also determines the
persons who are eligible for health care assistance; NOW,
THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS;
SECTION I.
That the City Council pursuant to the aforementioned Lease
Agreement, hereby advise that the initial eligibility standards
to be utilized in determining the value of services to be
provided to indigent patients are;
1) The standards established by the Texas Department of
Human Services (DHS) pursuant to Section 1.06 of the
Indigent Health Care and Treatment Act, Article 4438f,
V.A.T.S., as such eligibility standards may be changed
from time to time. These standards are available from
DHS or the County Auditor;
2) EXCEPT that residents who were eligible for assistance
from Flow Memorial Hospital during the fiscal year ending
September 30, 1984 shall be eligible for assistance if
they continue to meet the eligibility standards that were
in effect during the fiscal year ending September 30,
1984, the Hill-Burton category A standards for 1984, as
attached.
Section II.
That the City Secretary is hereby directed to forward a copy
of this Resolution to Mike Whitten, President of Flow Regional
Medial Center Board of Directors.
Section III.
That the Resolution shall take effect and be in full force
immediately upon its passage and approval.
PASSED AND APPROVED THIS THE day of , 1986.
RAY STEPHENS,--RXY
CITY OF DENTON, TEXAS
ATTEST;
CITY -SECRET
'7C1FY
CHARLOTTE ALLENp CITY OF DENTON$ TEXAG
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
Page 2
peRisrer / Vol. 49, No. 99 / Monday. February 27, 1981 / Notices 7151
DE►ARTMINT Of HEALTH AND
HUMAN SERVICES 14) Family. A family it a Group of rw4
O"Ico of the Swetery lee! Powsom wCoNig GutogwNst FOR ALL eamMi 004 adoptionewho rote ds
Annual ROvta+M Of ►ererry tileome STATES (EJCIFy ALASKA AND HAWAIIi AND lost{nor, ail such related parsons see
Dutdetmef THE D,aTTCICT OF COt uMatA eonuoered ee members al aAe family. (LI
Aasocri Depanmtat of He '•h and family onellortIntel thap, cam uunrolatad
Human Services' Site M 16eilr w poverty euidelmle its
r ACTION: Notice. applied separsioly It aeA (amity end/
of unreleled tAdividual. and not to the
surasAon Thin 204-ca prer/ts s 1 NMO hor.phoW as a whole.
revision of the federal poverty tncorut 2 (b) FpmrlyYAit 018111 MIA In
gvidd ii0l to account for iaw1146 W 7,. 6.640 contuncuon with the Federal pavty,
the COAaumff Mar lAdr11, 4 IOJW Uleoma guidelines, a family unit of lee
cATa7 February 27,10" 1 _ 11,6110 sat is an unrelated titdlvtdu6l lac
Aaw466t OMCS of the Aathinni 6 u,eaa dormed by the Gnaw aW 11Y►- Lt. 0
Secretary for plamine end Ewlusuos, 7 ta,y0 parson SS yew old or ever (athtr them
Deportment of Hielth and Human 6. - t7.sao an laaeu el an IAIUIultan) who Is not
Services, Wlehinglon, O t- 20101. Irving WLh any "lahvfs. An unraisud
11011 11VATwIn11e011YAT10M eoorfAC7•• lndrvldYal may be the salt o"uparw o( a
for inforrnatroa ghoul the poverty houamg uo14 or may be residing to a
rytdelints in 14ne16L centecl Caroga For ramify uniu with more than a bowline unit let in group quartos each
Give ualephanf:(m:1 245--n5al: or loan members, add S1,740 for each additional at a looming house) 0 which ens of
Tweli•effama pelaphonu (1021245- more persona also retida who err alt
41411. member. related to the individual in question by
Q148611 s pergUeuy so the 41ILK m mos$, at adoption. lExamploe
spphcuton *(those guidelines to an of urveluad individuals molding with
Individual program should be referred to POVERTY INCOME GwoEUNIll FDII ALASKA f+lone Nsludo a lodg46 a letter ebtld.6
the Federal office which if rnpomtbla ' word. or OO employee,)
(of Thal program. Fwarp (c) mcama. Differs N total Annual cash
For Informauos about the MITI-Burton 6°11 M twh"" traMrer receipts before tease (teat AN aowe
UnCOmpfnleted $arviafl Program. (income dais (or a peH M a year may be
annualised in order to doiermiat
contact the Office of the Director, 1 14.1w etielbMy-.e 1. by nulop1yial the moat
niviaion of Foutitite compliance I /tie5ao Pectic We@ months of income by'revej
ltflephone,1311144"121, a Those receipts include money wages
This notice provides the 1904 revision 4 w@ and selanea before say deductions, but
of the poverty +ncans eutdelots 4 I14 A" rANO de cal tncluds (slid a rent to hew of
required byfeations 632 and 673121 of y 16 1 waCes.l'hsyalw kKJYde eel receipts
the Oouuhve BYdgrl Retsncilution Act e, e1,N6 Iron tiadA,s of Mies "ll•omployment
of I NI, As required by Na sutuo, this
(el, "C4101 bete A person's owe
reYlslon reAecle eiwngle in the business of Ifni allot deduces lot
Consumer Fintr 111441:11 use bweioao of fain f"fWAq They
accampluMd Ujung the tome For family Mills w11A More thane Irsciwdo "rWarpayt4e1116lros doaal
natllodol0ry used sot preview yren eatn,rvey, rotiraadreweatenl
7bad poverty income ryidehnta an members, add SWO for tack addlhonel Yeasplo7eoll eompeUauon, worlere' '
used a an elq tiloy cnienoo by a member, wnlert pew ImAds, wioteratts' Aar` m wplo a alk public al Fedeal propramsi In cennu es rs" li IftsJudt
c
cuthrY a r Supplalempuvnen
a A.
rcs, 111 sated to the rdevml POVERTY INCOME GUIDELINES foR HAWAA S'~ry lnctmsh ual'tls military
r.
a,ithon:ing 4p614boo of pn+gram dfalony. child tupporl sod nd rerytenona,dprogram used the overly family 4lroaoonteof eDrerretwar
eu,dehnts lee owy one el avus! &ss at y vy s" +11+ M support bom an ablest family eunber
filibbWy criteria. Or mats a sn"rteauoe a ooroeond'not {writs In the boulehold
Of the auidahOeo 44,13016 of 164% of t pnvou petitions, 6ovemmtnl rrnplopfs
the guldehnetG Some soft programs e_ a6.t50 peA And ryldar Lnsuianti a
while net using use 2wdeliAes as o ummity psymdntsl and Weme bale
eliteno l of 1edwv11061 eheihiliry, use f t1,r34 dlnGird4 btlereeU Mills. royAlbu, ill
them fat the perpae of orpluris A vs.rx ensd.c nuqu tram fewer or wsu,
4461otance at tervicts. In some eases, 4 p
111171 ar eligsbihty purpalee, loeome data Act '
rhea powsrty LWANO gutdeltnee may col 1 11,130 lndudO ON folfowtne "Imply ofcallim
beeumd eileohve lot cenoin prvgrems 1 q.Rta csptul puts; bar leetu drovn down a
caul 4 fegutahsn Or noPa speuGt:sily withdrawal$ Seem a bank tea mile of
4DPl tine to the pregrem a etuaawn has property. • bona. w e err. son n Lunde
been laved For family WIN W11A hors than ra gilts.lump•sYm 1nberil"c4e; ose•usag
no fo4swtne derwliene (derived for members, add Uooo for each adds Ilona! InIts twbrue pa Maetuse at wmpeem-cas did, the mod eH from Ili be troy. o im
are nN•6dat
r neuoee used M U.4 member, benefits. such a lhesmplaytr•pald at
Bureau of the Gesw, CAsnrns YnNa•paid peruse of health InluraACt
ropulatio Rel ane, Series P-40, Ne,136 and "of fieptsyts InASO heMDlt, food
an aide r seisame s Ihm f i # st ries) a mat "solved m 1416 of waits, the
value with the poverty Incomes evideliusi costumed d food on and fuse. fwd tee pm unpetepuce and
o on d wluo
pregramt may we ~AUfsswAtl diNdnal of rent ar tram swnneewped IIOnIHfll 1111
aefwtione. farm bowa4. end luck federal
The (*Roof disruu0oe betwote proersmssa Jdtdiceld. Food Comps,
Poverty gwdaiinea lorlarn fanubes fad and FLIWC haNnp
p
I'Vis v " Culminated noi l n iamenIAMel al tN~ Dawes rrwiwry 1i 16w.
la -Mieal ehanvoa M W 6U1tta1 Mare/rN JK, llsdlu,
albuottal Nflmho of pevany 6ecwsaeyNfltOlsAeAfMwsa11gerrtaa
aMOtmcedby she SattoY of the Claws Fs ar t.«»nue srOabw/at
sears o+a.,r0e+
Is No Fedaal NotioW fee Decambet 24
Sees, 4146 Fit 62674• The pavemy
~ulddsset even above Ora applicable t0
>tMaA line oriel "Klein laterite, t
DATE: December 16, 1986
CITY COUNCIL AGENDA ITEM
TO! Mayor and Members of the City Council
FROM: Lloyd Harrell, City Manager
SUBJECT: APPOINTMENT OF "CITIZEN'S COMMITTEE" FOR INPUT TO CAPITAL
RECOVERY FEES STUDY
RECOMMENDATION:
The Public Utilities Board, recommends the attached list
of possible interest groups from which the City Council might
select a thirteen (I3) member citizens steering committee.
SUMMARYi
On November 19, 1986, the Public Utilities Board recommended
approval to the City Council that Camp, Dresser and McKee act
as the City's consultant for a Capital Recovery Fees Study.
One of the provisions desired in this study by the Public
Utilities Board was the establishment of a "Citizen's
Committee. On November. 26, 1986, the Public Utilities Board
developed a list of thirteen (13) possible community interest
groups who could aid in providing input on this subject
feasibility study.
BACKGROUND:
On October 7, 1986, the City Council authorized the Utilities
staff to request proposals from consulting firms to (1)
determine feasibility of Capital Recovery Fees and (2) after
approval to proceed by City Council, determine what cost and
how these fees would be administered for water and wastewater.
At the Public Utilities Board meeting of October 22, 1986, the
interviews with prospective consultants gave emphasis to a
"Citizen's Committee" to provide input valuable to the
political impact of this study.
On November 19, 1986, the Public Utilities Board approved a
recommendation to City Council that the consulting firm of
Camp, Dresser, and McKee (CDM) be selected to conduct its
Capital Recovery Fee Study for the City. The Public Utilities
Board also directed its utilities staff to ask the consultant
for, advice on the composition of a "Citizen's Committee."
Capital Recovery Fees
"Citizen's Committee"
Page 2
On November 26, 1986, the 4'ublic Utilitios board considered
the attached list for approval and appointment by the City
Council. Roger Hartman, Study Project Manager, stated that
CDM has been involved in numerous "Citizen's Committees" for
studies they have perforried for other cities. The attached
list is a result of his +axpertise and desires of the Public
utilities Board. it is --onsidered to be a well rounded list
of representatives from the community. It is suggested the
"Citizen's Committee" not exceed thirteen (13) representatives
in order for it to be efficient.
PROGRAMS, DEPART14ENTS OR GROUPS AFFECTED:
Citizens of Denton, Contractors, Engineers, City of Denton
Utilities Board, City Council.
FISCAL IMPACT:
Committee would be made up of volunteers. The only cost would
be that of the Consultant and City staff asoi.sting in advising
the "Citizen's Committee." Consultant involvement io already
included in his fee.
Re pectfully Submitted,
y -Ha Fr
City Manager
Prepared by:
C. David Ham, P. E.
Director of Water/Wastewater Utilities
Approved bys
E. Nelson, P. E.
Director of Utilities
ATTACHMENTS: I - List of proposed representatives
for "Citizen's Committee."
Il - Ordinance
PROPOSED REPRESENTATIVES FOR
CAPITAL RECOVERY FEES
"CITIZEN'S COMMITTEE"
Appoint members from each of the following entities (limit of 13
members)e
1 At Large
1 City Council Member
2 Public Utilities Board
1 Chamber of Commerce/Board of Realtors
1 Universities
1 League of Worsen Voters
3 Home owners (one of whom is retired)
I Engineering Firm
I Apartment Dweller (possible student)
1 Homebuilder Association
13 Members
it is suggested that the City Council member or one of the Public
Utilities Bo<,.rd member be appointed chairman of the committee by the
City Council.
Approximate number of meetings in Part 1 of Feasibility Study - 3
Approximate number of meetings in Part 2 determining cost and
method of administering Captinl Recovery Fees - 2
Total Meetings 5
Approximate length of time Citizen's Committee will be involved
unless extended by City Council. - 4 Months
"Citizen' ommittee" will report to Public Utilities Board,
Attachment I
1662L
R E S 0 L U T i 0 N
WHEREAS, the City Council has, upon the recommendation of the
Public Utility Board, authorized Camp, Dresser and McKee to con-
duct a feasibility and implementation study for the establishment
of capital recovery fees; and
WHEREAS, such study contemplates the appointment of a
citizens' committee to provide input and assistance to the
consultants and the City; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS;
SECTION I.
That the following individuals are hereby appointed to
constitute the "Capital Recovery Fees Citizens' Committee".
At Large Representative
City Council Member
Public Utilities Board Member
Public Utilities Board Member
Chamber/Board of Realtors Representative
University Representative
League of Women Voters Representative
Home Owner
Home Owner
Retired Home Owner
Engineering Firm Representative
Apartment Dweller (possible student)
Homebuilder Association Representative
SECTION II.
That is hereby appointed as the
chairman o such omm ttee.
SECTION III.
That the Committee shall coordinate with Camp, Dresser and
McKee and the Public Utilities Board and shall report its findings
to the Public Utilities Board.
SECTION IV,
That this resolution shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of 1986.
RAY STEPHENS,
CITY OF DENTON, TEXAS
ATTEST:
ALLEN, CHARLOTTE CITY SECRET M
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY
1664L
• R E S O L U T I O N
WHEREAS, the City of Denton, Texas, is a member city of the
National League of Cities; and
WHEREAS, nominations for National League of Cities committee
memberships are presently being accepted by the Texas Municipal
League for its recommendation to the National League of Cities;
and
WHEREAS, the City Council wishes to nominate Mayor Ray
Stephens as a candidate for membership to the National League of
Cities Policy Committee; and
WHEREAS, Mayor Ray Stephens, having held an "elected office
for at least one year and having previously' served on Texas
Municipal League's legislative policy committees, meets the
Texas Municipal League's qualifications for recommendation as a
candidate for the Policy Committee of the National League of
Cities; and
WHEREAS, Mayor Stephens would be an able proponent in
representing the interests and values of the Texas Municipal
League in considering and addressing federal and municipal
policy issues as a National League of Cities Policy Committee
member; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS:
SECTION 1.
That Mayor Ray Stephens, having met all of the criteria for
recommendation by the Texas Municipal League for appointment to
the Policy Committee of the National League of Cities, is hereby
nominated as a candidate for the Committee.
SECTION II.
That the City Secretary is hereby directed to forward a copy
of this Resolution to the Texas Municipal League by January 1,
1987, for its consideration in making recommendations for
candidates to the Policy Committee of the National League of
Cities.
SECTION III.
That this resolution shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of , 1986.
RAY STEPHENS t MAYOR-
CITY OF DBNTON, TEXAS
ATTEST:
r
CRXRLOTTE f CITY SECrtE TU
CITY OF DBNTON, TEXAS
APPROVED ,kS TO LEGAL FORM:
DEBRA ADAMi DRAYOVITCH, CITY ATTORNEY
CITY OF DBNTON, TEXAS
r
BY:
lq#
1D OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor ~ Members of the City Council
FROMt! Debra A. Drayovitch, City Attorney
`SUBJECT: BAployd'ent Agreement
DAM-' December 10, 1986
Pursuant to the direction of 'the Mayor, I have prepared the
attached resolution amending gar employment agreement .with the
City. The, only' changes' are with rb$paet~ to salarp„! and the
aiendment allows for subsequent salary revisions' after annual
performance eValuarions:
Pleise advise if you have arty `questi'ons."
Respectfully submitted,
DADtjs
Attachment
i
CITY of DENr0h, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78201 / TELEPHONE (817) 508.8307
Office of the City Manager
M F M 0 R A N D U M
T0; Mayor and Members of the City Council.
FROM; Lloyd V. HA rrell, City Manager
DATE; December 12, 1986
SUBJECT: Employment Agreement
Based upon your communication following my annual evaluation,
the City Attorney suggests that a motion is required increasing
my annual compensation to $74,800 effective January 1, 1987.
($68,000 x 10% . 740800).
41, gain £or your confidence and consideration.
t&e Z
rre
City Manager
jw/3211M
ci' Y4gr:.. #n^'~ '
r4
(,t
t
3
CITY OF DENTON, TEXAS
' (DRUTOK COUNTY)
$500,000
CERTIFICATES OF OBLIGATION,
SERIES 1987
Selling Tuesday, December 16, 1986
at 7:00 PM, CST
NOTICE Of SALE
AND
BIDDING INSTRUCTIONS
ON
$300,000
CITY OF DENTON, TBXAS
(Denton County)
CERTIFICATES OF OBLIGATION, SERIES 1987
Selling Tuesday, December 16, 1986, at 700 PM, CST
THE SALE
C1 t O f red for 2AIq at it a BlOdjn
The City of Denton, In Denton County, Texas (the
" i , Is offering or sale Its $)00,000 Certificates of Obligatlon, Series 19819 to be issued Initially as a
single fully registered certificate, w.•hout Interest coupons, ,•ayabie In installments to the Initial reglstaresl
owner thereof, to be named by the successful bidder (the,'In1tW Certificate"), with the Wtlal Certlilcate
being exchangeable for fully registered Certificates, w'~thout Interest coupon In any Integral multiple.of
$3,000. It Is expected that Immediately after del!-,cry, of the Initial Certificate at the corporate t",t
office of the paying/agent registrar (hereinafter Jescr€bed), the Initial Certificate will Le converted Into
and exchanged by the paying agent/registrar for multiple fully registered certificates, each having it single
maturity date (the "Certificates"), Ir. w4orOwtce with the Ordinance authorizing the Issuance of the INt4q
Certificate and the Certificates (thr. "Ordinance") and instructions from the successful bidder, all. s4
hereinafter provided.
rye o M Sealed bids, plainly marked "Bid for Certificates", shoukf be addressed to "Mayor, and
City Council, City of Denton, T*xWp and dcilvered,to the City Manager, City Counter Chamber, .Munlclpai
Bullding, 213 B. McKinney Street, Dentory Texas, prior to 700 PM, CST, an the date of the bid opening.
All bids must be submitted on the Official Bid Form, without alteration or lnterilneation.
Place Ti , The City Council will open and publicly N%sd the bids for the purchase
of the ertlficatea in the lty Cnuncll Chamber, Municipal Bullding, 213 go McKinney Street, Denton,
Texas, at 700 PM, CST, December 16, 1986.
Awsrj f Cer fI at The City Council will take action to award the Initial Certificate (or reject
all bids) promptly after t opening of bids, and adopt the Ordinance authorizing the Initial Certificate and
the Certificates and approving the Official Statement.
THE INITIAL CERTIF1C6Tir ANi) THE CBRTIFICATt?S
as le The Initial Certificate and the Certificates will be dated January it 1987, and Interest will
be~dueo~n~January 1, 1988, and each July 1 and January 1 thereafter until the earlier of maturity or prlor
redemption. The Certificates Issued in exr,hange and substitution for the initial Certificate will be Issued
In fully registered form In an Integral multiple of $1,000, each having a single maturity date corresponding
to the due date of the Installment of principal or portion thereof, and bearing interest at the rate
opplicabie to such Installment of principal or portion *oft for, which the substitute Certificate Is owing
exchanged. Principal and semi-annual Interest will be paid by MBank Dallas, N.A., Dallas, Texas, the
paying agent/regissrar (the "Paying Agent/Registrar")., Principal of the Certificates wW be payable to the
regiftered owner at maturity or redemption upon presentatlon to the Paying AgentlReglstrar. Interest on
the Certificates will be payable by check, dated as of the Interest payment date, and mailed on eaph
Interest payment uste by the Paying Agent/Roglstrar to each registered owner ae, shown on the records, of
the Paying Aggent/Reglstrar on the Retard Date (see "Record Date" herein). The principal of the Initial
Certificate will come due and mature on 3uly l in each year, with Installments of,princlpal payable and
maturing as followsn
Prknclpal Prinlcpal Principal
r Year A t Y m n
8 O 1943 23 r ZOQ l ie
1989 230000 1"6 23,000 2002* 23,000
1990 239000 1"7 . 230000 M3* 230000
1991 239000 1948*, 250000 2000 23,000
1992 23,000 19990 23,000 20030 230000
1493 23,000 2000* 23,000 20060 23,000
19941 230000 20070 23,000
t on Rodomp The City reserves the right, at Its option, to redeem the Initial Certificate and the
eat eta maturing July 1, 1998 through July I, 2007, both inclusive, as a whole or In part, at the option
of the City on July 1, 19970 or on any Interest payment date thereafter at per and accNed Interest.
Successor Paying f~R stru Provision Is made In the Ordinance for replacanent of the Paying
Agent /Registrar. It the Paying Agent/Registrar is replaced by the City, the ri• w Paying Agent/Reglstrar
shalt accept the previous Paying Agent/Registra is records''sind 'act In the same capacity as the previous
Paying Agent/Registrar. Any Paying Agent/Registrar selected by the City "I be a competent and legally
qualified bank, trust company, financial Institution or other agency. Each Successor Paying
Agent/Registrar, if any, shall be determined by the City.
Source of Pa men The Initial Certificate and the Certificates are direct obligations of the City of
Denton, Texas, payable out of the receipts from an ad VeloWn tax levied, within the limits prescribed by
law, on all taxable property located within the City, afid from ;the revenues derived by the City from the
operation of the City's Municipal Airport.
CONDITIONS~OF THE SALE
_Ty es of Bid* and Interes Rates The Initial Certificate will be sold In one block on an "All or None"
basis, d st pt ce not lest than its par va..se plus accrued Interest to the data of dellvity,of'the'1Ntia!
Certificate. bidders are ln'vlted to name the rate(s) of Interest to be borne by each Irnttalltnant of grirrcl*
of the lnltlkl Certificate,' provfded that each rite' bid Must be In a mul~ipw of I/1 of 1% or 1/20 of 1% and
the rOV 61111 ec'tlve interest cost must not exceed I3%. The highest rate told may not emceed the lowtst rate
bid by tiidhe'thatl" y% in rate. 'N6 llmltatiCh is imposed upon bidders as to thhe,nhmhber of rates or changers
which may be used. Each InstalldwAt of principal (mitt rlty)'must bear one and'the satne''rate: No bids
Involving su*lehiental Interest rates' will be considered. Each bidder shall state' br his bid the total
Interest cost In dollars 'and the net effective Interest eate'detee min(d thereby (talculated In the Wtara»t'
pprrescribed by'Artlcl6 71111«2,'VA1CS),`whlch snail bid LWslddirid lnfoFrrkatlvt oney ahd`iat as 9 Oatt -dutm
b!d .
Salls for ward For the purpose of awarding the sale of the Initial Certificate, the Interest coat of
e eompiuted'by d6terrntn7116OW,Yeari , at the rate or rates epetifled therein, the total dbiW bolt'of all
lnt*eett'bn all'inatallnlethts of principaatdMltles) of the initial Certificate froth tM date eM1W,to ftW
respective rthatircltles uslthj~ the table hereln, and deducting tflerefrdkh tii6 prdMiurwbidr if
any. Subject to the City's' rlght'to reject any O all bids and to waive any WregutarMes'except time of
filing, the Initial Certificate will be awarded to the bidder or syndlcfte a xount whose name first appears
on ific'Official'ald Porch (the'"Wtlaf Purchaser" or "PurchhOW) whose bid broad onthe above cotnpthtatidrh
produces the lowest 'not effective Interest'&st to the City c'
The award of the Certificates to the Purchaser la cdhndltloned u the Purchaser executina. and delivsr
r ,be
te with
to~teT` c t'tR. elr+e' ra s are awar a ca
"~Tce o f rt +cat form o cortificaft Is o w P
submitted with the 0111cM Bid Form.
Goodtalth~Deposit A'OI6od tsalth'Dep"It► p*yable'to:'the.WeIty'of Uentbn Texas", in the amount of
$100000.00, Is required. Such Good Faith Deposit shall be In the form of a Cashier's Check, or Its
equivaleht, which is to be retalf►ed uncaah'ed by the City pending the Purctiaeer's compilaribe with'ttta'terhihl
of his bid'ahd`the'Ndticb of'Sale acid !lldding lnltructlons ' The Good Faith Deposit may rtttbmpsny this
Offlelal Hid FoirM dt It may lie akbfnittc►d separate!y. If submitted sdparately, It shj!hbe made evallAbhe.to
the City paler to the opening of the blds44hd shall bi-66compi 164 by InsWuctlons from the b"166'Whidh
drawn which 'rtttthdrix6' is use ~as a Cited Falthi Deposit by the Purchaser who shall be named In ;iuddh
1hmtlqJctidfhs.'h'he Good'Iaith Do ositl6f'thte Pitcha/erVill'be appiled'on tlte'p>trrchase price°Onlth* 4601"
delivery tat the' Wtlal' Certificate. ' Ne Inteerest will be'lllowed 6Wthe Good Faith Depedt. "the eYtofft
Purchaser',ifitahkf tail or refusa 'to tske upland pay fbr the Initial Certlik eta in doewdan ce korith his bide
then sald'hheck"ethsli bb'calhed'ahd becepted'by'tha City am full'and complete°iiquldsted'damagft Tfte
chik*i ei;cdMpohying ' bills ' Other' that) then' w1MIrig bid Wik ` be returned 1Mntedfately ? sftstr `tl1e ltlds at*
tlM' arh' iwal'd of the Initial CetltlfkCate has betO Madeh
MI
DELIVERYYOF THP. INITIALICER'CIMCATE'AN1a'ACCOMPANYlNG DOCUMENTS-
CUSIP Numrnbe.rss It is anticipated that CUSIP Identification numbers will appear on the Certificates (but
not on the Initial Certificate), but nelthor the failure to print or type such number on any of the
Certaficltdst'kehanngged for the Initial Certificate nor any error with respect dkt+trto aflalt constitute cause
for a fallur'e or' refusal' by the Purchase!" to~ accept delivery of and pay for' 4* Initial Certificate In
accordance'*Ith the terih of this Notice of Sale and the terdhs of the Official raid Form. All'idkpenses In
relation to the prlnting t r ing of CUSIP numbers on the Certificates shall be paid by the Chyf rovided,
however, that the C SIP ervice Buread charge for' tho' assignment of therm tuber, shill be the
responsibility of and shall be paid for by the Purchaser.
Delivery of Certificate Delivery will be accomplished by the issuanre and delivery of the Initial
Certificate, elther In typed or printed form, In the aggregate principal amount of $500,0000 payable in
st'atc+d-lnitallhnents to the Purchaser, signed by the Mayor and Clty Secretary, either: manually or kW
f llfinlld, 'epprbved by 'thi`Attorney"GaN~eritlt„1an14' fegfsteked`•by tlx'Comptroller~io[ PUblit 'ACtWntsi
Delivery ~vl "bd'eft''!hd )irjfhChpil?cbrpol6te'offiGti+`bf'tlitr PNylit''Ikgeht/Itegtatrc>f. paplmME !a the bH'tUtl
Certificate must be made In Immediately available funds for unconditional credit to the City, or as
li'
otherwise directed by the City The Purchaser wW be given six business days' totict at the tiow fixed for,
delivery of the Certificates. It Is anticipated :that Delivery of Vw Wtial Cartifcate can be made on or.
about 3anuary 20, 1917, and It is underrtaod and agreed that the Purchaser will accept;ddivery and rhake
pt o ertt for the Initial Certificate by iOM: AM* C T, on 3enuery 20, 1997, or thereafter on the edge thee,
Inl" Certificate is tendered for delivery, up to and lncludtng,Rebruary 30.1"7. 1) for any, team the City
is unable to make delivery on or before February 31 1987, then the City shall Immediately contact the
Purchaser and offer to allow the Purchaser to extend his offer for an additiong,,thirty,days..It the.
Purchaser does not elect to extend his offer within silt days thereaftero then his Good Tenth Deposit ,wW:be
returned, and both the City and the Purchaser stall be relieved of any further obilgetlon. In no event shall
the City be liable for any damages by reason of its failure to deliver the Certifiastre, provided such failure
to due to circumstances beyond the City`s reasonable control.
Deliver of Definitive Certificates Upon payment for the Initial Certificate at the these of its dsiiveryr
' aying Agent/Registrar carte) the initial Certificate, provided registration Instructions have been
the received by the Paying' Agent/Reestrar, and shall rtgiater, authenticate, and daliv , the registered
f definitive Certificates, In, any Integral multiple of .$900, for Any ant maturity, in accordw4e,,with
lnvnxtions received from the Purchaser and/or mdmhers of.tlm Purchaser's syndicate aWN%t. Is *Au be
the duty of the Purchaser to furnish to the Paying Agent/Registrarj at least five huWxessdays.prior. 00 the
delivery of the initial Certificate, written Instructions on forms which the purchaser must request and
obtain from, and which shall be provided by, the Paying Agent/Registrar destgnatbug the names, In, which
the Certificates ate to be registered, the addresses of the registered owners, the nnsturitles, Intereo rotes
and denominations. It such forms, are not available, wtitten ihsUvOlona by letter shall be furnished. fa
Paying Agent/Registrar. The Paying Agent/Realstror will not be reaulred to accept, rygistration
Instructions after othe fifth business day prior ,to InIt4l IDellvery. •;1'f w sr written butrucuena are hot
received within the specified 'time period, the candWadon of the. Initial Certlflcato and, d4livery .ot,
registered definitive Certificates will be delayed until such written~InstWrttlont we tsedvtd..
'.fa( )
Cone tion to Deliver The obligation of the Purchaser to take up arAl pay for the Initial Certificate is
set to he tasar's receipt of (a) t»e 'legal opinion of MCC41i4 padownt tbHertorry ~Iallasi Tessa.
bond Counsel for the City, (b) the r4-litigation certificate, OW +(a) the osrll $OWJ,h Ofiko
Saternent, a1i as fur ther descrlbed In the official Statement
Lgo Oeinion The Initial Certificate is offered Ow-4 as and If Issued, subject to the unqualified legal
opinion of the Attorney General of the State of-Tex&&, Delivery, of and payment for. the.Cartiflfsatna b
subject to receipt by the Purchaser of an opinion of McCall, Parkhurst & Horton, Bond Counsel, to the
affect that 'the Certificates -are valid and. binding obllgatlons', ad, the City and ,that lire interest on do
Clartificates is exckrdable from gross intone for purposes of federal incornc taxation WMW,.exlstir, le wj
except as explained under "Tax Extmptlon O in the Offlelal4tataneht.
rr:
Certification of Official State ent At the time of payment for, and delivery of the Inltlal Certificate,
the City will ekecuito and " deliver to the Purchaser a cortlficate In the form set forth In the Official
Statement.
Change In Tax Exempt Status At any time before the Inltlal Certificate is tendered for dellveryi the
Purchaser may withdraw his bid It the Interest received by private holders from certificates of the same
type and character shall be declared to be taxable Income under present Federal Incortre tax laws, ai*wa
ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be dacierod,;taxeble or
be required to be taken Into account In computing any Federal Income taxes, by the Wigs *(any #aQerpi
Income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL Financial Advisor's Rlaht to Bid First Southwest Company is employed as Financial Advisor to the City
In connection we fisuance of the Certificates. The Financial Advisor's fee for services rendered with
respect to the sale of the Certificates Is contingent upon the Issuance and delivery of the Certificates.
First Southwest Company may submit a bid for the Certificates, either Independently or as a member of a
syndicate organized to submit a bid for the Certificates.
First Southwest Company, In its capacity as Financial Advisor, has not verified and does not assume any
responsibility for the Information, covenants and representations contained In any of the bond
documentation with respect to the federal Income tax status of the Certificates.
blue Sky Laws By "mission of his bid, the Purchaser represents that the sale of the Certificates In
sates other then TtAas will be made only pursuant to exemptions from registration or, where necessary,
the Purchaser will register the Certificates in accordance with the securities law of the states In which the
Certificates are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's
written request and expense, In registering the Certificates or obtaining an exemption from registration in
any state where such action is necessary.
-iii-
t on Oiler to Sell . , . This Notice of Sale does not alone constitute an offer to sell the Initial Certificate
at the Certificates, but is merely notice of the sale of the Initial Certificate. The offer to sell the Initial
Certificate is being made by means of the Notice of Sale and SWIM Instructions, the Official Bid Porte
lord ow Offlchd Statement. Prospective purchaser: are urged to carefully examlae the Official Statement
to determine the Investment quality of the Initial Certificate and the Certificates,
<~Additlonal Bonds The City does not contemplate the issuance of any additional Certificates
Obligation or deneral Obligation Bonds prior to July, I%7.
aU s The outstanding Certificates of Obligation and General Obligation Bonds of the City are rated
"A I by Moody's Investors Service, Inc. and "A+" by Standard do Pooes Corporation. Applications for
contract ratings on this issue have been made to both Moody s and Standard & Pooes. The results of their
determinations will be provided as soon as possible.
Munlclnal Bond Insurance In the event these Certificates are qualified for municipal bond insurance,
and chaser desim to purchase such Insurance, the cost therefor will be paid by the Purchater, It
will be the responsibility of the Purchaser to disclose the existence of inw ww^ its terms and the effect
thereof with respect to the Certificate Owners.
The Official Statement The City will furnish to the Purchaser, without cost, 23 copies of the Official
tai-&te"rnent (and 27 copies of any addenda, supplement or amendment thereto), complete except as to
Interest rates and other terms relating to the reoffering of the Certlflcates. The Purchaser may arrange at
his own expense to have the Official Statement reproduced and printed if he requires more than 25 eopkmW
and may also arrange, at his total expense and responslbWty, for completion and perfection of the first or
cover OWN of the Official statement so as to reflect interest rates and other terms and Information
related to the reoffering of the Certificates. The City assumes no responsibility or obligation for the
distribution or delivery of any of these copies to any one other than the Purchaser.
A floras! Cbpigt of Notice Bid Pot and 5tatsr,ie t A limited number of additional copies of this
and 516d "ructions, the O c a B Form and the Official Statement, as a._041* over
o e o we n
and above the normal melling, may be obtained at the offices of First Southwest Company, Investment
bankers, $00 Dallas Building, 1907 Commerce Street, Dallas, Texas 73241, Financial Advisor to the City.
the City reserves the right to reject any and alt bids and to wodve Irregularities, except time of flUng4
On the date of the sale, th+ Clt; Council will, In the Ordinance authorizing the Issuance of the Initial
Certificate and the Certlflrates, approve the form and content of the Official Statement, and any addenda,
supplement or amendment thereto, and authorize Its use in the reoffering of the Certificates by the
Purchaser.
RAY STEPHENS
Mayor
City of Denton, Texas
ATTIlSTr
CHARLOTTE ALLEN
City Secretary
City of Denton, Texas
December 21 19"
-1v-
$500,000
CITY OF DENTON, TEXAS
COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1987
BWD YEARS
Accumulated
Year Amount Bond Years Bond Year$ Year
1988 S 260000 37.5 37.6 1988
1989 251000 62.5 100.0 1989
1990 26,000 87.6 187,5 1990
1991 260000 112.6 300,0 1991
1992 25,000 137,5 437,6 1992
1993 26,000 16216 600.0 1993
1994 25,000 187.5 787,6 1994
1995 26,000 212,6 10000.0 1996
1996 259000 237,5 1,237,6 1996
1997 260000 262.6 10500,0 1997
1998 250000 287,5 1,787,6 1998
1999 26,000 312,5 2,100.0 1999
2000 26,000 337.5 2,437,6 2000
2001 260000 362.5 2 A00,0 2001
2002 259cao 387,5 30187,6 2002
2003 269000 412.5 3,600,0 2003
2004 260000 437.5 4,037,5 2004
2006 259000 462,5 41500.0 2006
2006 259000 487.6 4,987,6 2006
2007 25,000 512.5 50500.0 2007
Average Maturity ---------------------------------11.000 Years
TMC T! %WGINJ UN W MR
RE RDIN IN L OF THE A
The undersigned hereby certifies as follows with respect to the $5000000 principal amount of CITY
OF DENTON, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1987 (the "Certificates").
1. The undersigned Is the underwriter or the manager of the syndicate of underwriters that
purchased the Certificates from the City of Denton, Texas (the "tumor").
c. With respect to each of the maturities of the Certl".:cates, the undersigned certifies that the
Initial offering price of each maturity of the Certificates as set fo, thaelow is accurate.
Principal Initial
mg4t M turlt ate Ofterintt Price
231,000 23,000 7-1-1989
25,000 7-1-1990
23,000 7.1.1991
25,000 7-1-1992
23,000 7-1-1993
259000 7-1-1994
23,000 7-1-1993
25,000 74-1996
230000 7-1-19%' _
23,000 7-1-1998 _
25,000 7-1-1999
23,000 1-1-2000
25,000 7-1-2001
25,000 7-1-2002
25,000 7-1-2003 _
230000 7-1-2004
25,000 7-1-2003
23,000 i-1-2006
23,000 7-1-2007
TOTAL
3. For purposes of this certlficate the term "Initial offering price" mew is the Initial offering price
of the Certificates to the public in a bona-fide Initial offering of the Certificates. The Initial offering
price includes any premium or discoint but excludes accrued Interest and any dealer concession. The
Initial offering price shown above Is stated as a yield.
4. A bona-fide Initial public offering of the Certificates will be made to the public at the Initial
offering prices shown above.
3. For purposes of this certificate, the term "pitiblic" does not include (a) the undersigned, (b)
members of the syndicate, if any, managed by 4he undersigned, or (c) &-,y bond houses, brokers, dealers, and
similar persons or organizations acting In the capacity of underwriters or wholesalers that ere related to
are controlled by or are acting on behalf of or as agents for the undersigned or members of any syndicate In
which the undersigned is participating in the sale of the Certificates,
6. Based on current market conditions, the Initial offering prices are not unreasonably low and
such prices are equal tc or greater than the current fair market value of the Certificates.
7. The undersigned recognizes and acknowledges that the certifications contained herein will be
and are being relied upon by the Issuer to comply with the provisions of Section 148 of the Interned Revenue
Code of 1986, and will be uied by the Issuer to determine the amount of any required rebate of Investment
earnings to the United States pursuant to Section 148(f) of the Internal Revenue Code of 1986.
Executed and delivered this 16th dey of E,^ceinber, 1986.
Managing Urt!erwrlter
Byn
Illemosis Mayor and City Council December 160 !fats
Cl" of Dolton
Denton, Tear
Gentlemem
Reference is made to your Official Statement and Notice of Sate and bidding instructions, dated December
2, 1916, of X300,000 CITY OF DENTON, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1967, both of
which constitute a part hereof.
For your legally Issued Certlficat-ts, as deacribed in sold Notice of Sale and Bidding Instructions and
Offlclal Statermnq we will pay your par and accrued Interest from date of Issue to date of delivery to us,
plvs a cash premium of $ for Certificates maturing and bearing Interest ao followsr
Interest Interest Interest
Maturity Rate _ Maturlty _ Rate Maturity Ret.
7-1-1961 % 7-1-1993 % 7-1-2001 %
1-1-1969 % 7-1.1996 % 7-1-2002 %
7-1-1990 % 7-1-1997 % 7-1-200) %
7-1-1991 % 7.1-1996 % 7.1-2004
7-1-1992 % 7-1-1999 % 7-1-2003 %
7-1-1993 % 7-1-2000 96 7-1-2006 %
7-l-1191 % 7.1-2007 %
Our c&Wation (which Is not a part of ti-Is bid) of the Interest cost from the above It
Total Interest Cost
Less Premium _
NET INTEREST COST
EPPECTIVE INTERE51 RATE %
We are having the Certificates Insured by
The Initial Certificate shall be registered In the name of
(syndicate manager). We will advise the Corporate Trust [)Ivlsion, enk a ay x 13,
Dallas, Texas 73263, the Paying Agen# Registrar, our regliwation Instructions for the definitive
Certificates at least five business days prior to the date set for Initial Delivery.
Check of the Bank, , in
amount o 1 763, which represents our' raltt~ereT(la attached hereto or been made
available to you prior to the opening of this bid), and Is submitted In accordhnce with the terms as set forth
In the Officle) Statement and Notice of We and Bldcing Instructions.
•e agree to accept delivery of and make payment for the Initial Certificate in Immediately available funds
in the Corporate Trust Division, MBank Dallas, N.A., !Salta, Texas, not later than IWO AM, CST, on
Jarwrary 20, 1987, or thereafter on the date the Certificates are tendered for delivery, pursuant to the
term sot forth In the Not)ro of Sale and Bidding Instructions.
The undeniKren^ agrees to complete, execute and deliver to the City, at the time that the Certificates are
awarded, a can !,heats with respect to the Initial offering price of the Certificates In the form
m, emparryirtg the Notice of Sale.
Respectfully submitted,
Kutho~ rized Repicsentative
ACCEPTANCF,CLAUSE
The above and foregoing bid Is hereby In all things accepted by the City of Denton,, Texas, this the 16th day
of December, 1966.
_ Mayor
ATTESTr
"-City Si6etary
rrrrrr
Return of Good Faith Deposit is hereby ocknowledgedr -
by
Honorable Mayor and City Council Decor" li,1Al6
City of Denton
Denton, Tex"
Gantlememe
Reference is made to yaw Official Statement and Notice of Sale and Bidding instructions, dated December
2, 1936, of $3001000 CITY OF DENTON, TEXAS CERTIFICATES OP OBLIGATION.:tt3RiE5 1937, both of
which constitute a part h:,r"(.
For your legally loved Certltleates, as described In said Notice of SW and &WWq bwOVctlMe and
Official Statement, we will pay you per and accrued interest from date of Issue to date of delivery to us,
plus a cash premium of $ for Certificates watwing and bearing interest as follow
interest Interest Interest
Matwiq Rate Maturity Rpte Maturity R&q
1-14933 % 7-1-1993 % 1-1-2001 %
7-1.1939 % 7.14946 7.1.2002 %
7-1-IM % 7-1.1997 % 7.1-2003 %
7-1-1991 % 7-t-1993 % 7-1.2001 %
7-1-1992 % 7-1-1999 7.1-2003 %
7-1.1993 % 7.1-2000 7.1-2006 96
7-1-1991 % 74-2007 %
Our calcutatlon (which is not a part of this bid) of the Interest cost from the aba a Ise
Total Interest Cost $
Lea Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE %
We are having the Cer6ttcates Insured by
The initial Certificate shad be registered In the name of
(syndicate manager). We will advlse the Corporate Trust Dlvlafan, as, -O- OWTO T ,
Dallas, Texas 73267, the Paying Agent/Reglstrar, our regiatratlon Instrutlons for the defWtlvo
Certificates at least live business days prior to the date set for Initial Dellvery.
Check of the Bank, in
the amount of $T6,oobb, which represents our in;j a t s attached t+erete~ or been made
available to you prior to the opening of this bid), and is submitted In accordance with the terms as set forth
in the Official Statement and Notice of Sala and Bidding Instructions.
We agree to accept dallveey of and make payment for the initial Certificate M Immediately available funds
in the Corpxate Trust Division, MBank Dallas, N.A., Dallas, Tex", not later than IOM AM$ CST, an
January 200 1987, or thereaftet on the date the Certificates are tendered for dsLvery, pursuant to tha
terms set forth In the Notice of Sale and Bidding Instructlora.
The undersigned agrees to complete, execute and deliver to the City, at the time 9natthe Certificates are
awarded, a certificate with respect to the Initial offering price of the Certificates in the form
accompanying tiro Notice of Sale,
Raspeetfully submitted,
Y By
`Aot`iorTze`dKepiesentatlve
ACCIPPTANCE CLAUSq.
The above and foregoing bid is hereby in all things accepted by the City of Denton, Texas, this the 16th day
of December, 1986,
ATTESTr
City Seceetary
•Ma►Fa
Return of Good Palth Deposit is hereby acknowledgedn
By
This Official Statement does not constitute an offer to sell Certlflestes In any Jurisdiction to any person to whom It is unlawful
to medn such offer In vxh Jurlsdictlon. No dealer, salesman, or any other peraon has been authorized to give any Infermatlen or
make any representation, other than those contained herein, In ponnection with, the offering of these Certilkate's, and it. given or
made, such Wormatlon or representation fount hot be relied uuppoorrnn The lhf.rrnatlod and fxpresriona od opwAt'* FKre are ")act
to change twithoat ndticd and nelthif 'the' dellvety of this OfficW Statement nor any' $410 made her&sn&r ytiJnll, under any
circumstances, create any Implication that there has been no change In the affairs of the City since the datafWedf;
OFFXUL STATRMMT
Dated December 2,. 1986
In the opinion of Bond Counsel, Interest on the Certificates will be excludable from gross income for
purposes of federal Income taxation under existing statutes, regulations, rulings and court decisions, except
as explained under "Tax dxemptlon" herein.
00000,0
CITY OF OtN
TONr tEXAS
(benton County)
CERTIFICATES OF OBLIGATION, SERIES 1997
Dateds January'l, 1987 Duet July I, as shown below
interest on the Certificates will be payable July 1 and January I of each year ebmmencl% January 1, 19118.
The.Certlficates will be Issued only In fully registered form In any integral multiple of $30000 for any one
maturity. Principal of the Certificates will be payable to the registered owners at maturity or redemption
upon presentation at the principal corporate office of MBank Dallas, N.A., Dallas, Texas, the paying
agont registrar (the "Paying Agent/Registrar'). Interest on the Certificates will be payable by checks
dated as of the Interest payment date, and malted by the Paying Agent/Registrar to registered owners as
shown on the records of the Paying Agent/Reglstrar on the Record Date (see "Record Date for Interest
Payment"). If the date for the payment of the principal of or Interest on the Certificates shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions In the CJty where the. Paying
Agent/Registrar Ib located are authorized by law or executive order to close, then the date for such
V shall be the: next succeeding day which Is not such a Saturday, Sunday legal holJdsy, or day on
which banking Institutions are authorized to closes and payment on such dat,i shall have the same force and
effect as If made on'the original date payment was due.'
These Certificates (the "Certificates" or "Certificate", which shall Include for purposes of definition, the
"Initial Certificate"), are direct oblige'tlons of the City of Dentonp1exas, payable out of the recelpti froth
an ad valorem tax levled, within the llmlts prescribed by la'*, on'all texabld'property located Within this
City, and from the revenues derived by the City from the operation of the City's Municipal Airport.
These Certificates are authorized pursuant to Article 2368a.1, Vernon's Annotated Texas Civil Statutes,
and are direct obligations of the City of Denton, Texas.
MATURITY SCHEDULE
250 -119 8 Rate Yield Amount Maturity Rate Yield
23,000 7-1-19998 $ 2233, 77-11-1E999899*
23,000 7-1-1930 25,000 7-1-2000+
23,000 7-1-1991 23,000 7-1-20010
25,000 7-1-1992 25,000 7-1-20020
25,000 7-1-1993 250000 7-1-2003*
25,000 7-1-1994 23,000 7-1-2004*
23,000 7-1.1995 23,000 7-1-20030
25,000 7-1-1996 25,000 7-1-2006*
23,000 7-1-1997 230000 7-1-2007*
* The City reserves the right, at Its option, to redeem Certificates maturing on and after July 1, 1"11, In
whole or part, on July 1, 1997, or any Interest payment date thereafter, at the par value thereof plus
accrued Interest to the date fixed for redemption. Not less than 30 days prior to a redemption date for the
Certificates, the City shall cause & notice of redemption to be published as required by the Ordinance, and
the Paying Agent/Reglstrsr will be obligated to send a notice of redemption by United States mall, first
class, postege prepaid, to each registered owner of 3 Certificate to be redeemed, In whole or in part, at the
address *lie owner appearing on the registration books of the Paying Agent/Reglstrar at the time such
notice of redemption is mailed.
Payment Records The City has never defaulted.
Le~alitys The Attor_n_e_v_Gen~eral of Texas and
Mecali Parldwra: rton Bond Cmmsel Dal r xas.
OD n on Printed V ert cateat See Lest D n ohs.
Delivery: Anticipated on or about January 2001987.
i
. 1n". >?sr:•R'.e'-P `3.SS': 1Y'/ }!'HS ~ . . a . .Y.T j"'^'^^~^^
i
Meg e r , Thh''ihlti ,,~'11Y11t6.rQl1Rgar iA~n ce ; ovltla o Paying ~Sen .j egistrar At~giU times, t fiii e, th 1 hettY c4" Ail
9+', t4
pc theulRt 4 ep, tt
are
Pal a a . 1d y ng Ag ne/Reglatrar shall be a bank, trust company, financial institution, or other entity duly
srtd legally authorized to carve ae and perform the duties and services of Paying Agent/Reglstrar
rtificates. Upon any charge In the ftayirtg AgantlRegkstrar f" the Certificates, the City agrees
tly cause a wr[tten notice thereof to be sent to each registared Owner of the Certificates by
tes mall, first class, postage prepald,'whitrh notMtt ettAl[ also give the address of the row Paying
gistrar.
Transfer. @xcha► e' and R tratlon . . The Certificates may be transferred, exchanged JrW heg[Iftered
only the rem stret on books o the Paying Agent/Registrar upon presentation and litrttttder'thdi'ectS to
the Paying Agent/Registrar, and such transfer, exchange and registration shall be without expense or
service charge to the registered Owner, except fdt" Ony, tax or other governmental charges required to be
paid with respect to such reglatratlon, exe *e; AM trajtsfei A Certificate may be assigned by the
execution of an assignment form on the Ceriltlcate or by other Instrument of transfer and assignment
acceptable to the Paying Agent/Reglttrar :A, pew, pgrtltlcate; or, Certificates will be delivered by the
Paying Agent/ Registrar, in lieu of the Certificate being transferred or exchanged, at the principal
corporate office, of the Paying Agent/Registrar, or sent by United States mall, first class, postage prepaid,
to the new registered Owner or his designee. To the extent posslble, new Certificates Issued In an
exch ige or. transfer of Certificates wlU be'deilvered to the registered Owner or assignee of the registered
Owner in not more than three buslness'days after the receipt of the Certificates to ,caneelled,'and the
written instrument of transfer or request for exchange duly executed by the registered Owner or'his duly
authorised agent, In form satisfactory to the Paying Agent/Reglstra'r, New Certlflcatee reglatered~ and
delivered In an exchange or transfer shall be In any Integral Multiple of $5,000 for any one maturity) and
for a like aggregate principal amount as the Certificate or Certificates surrendered for exchange or
transfer
Limitation on Transfer of Certificates Neither the City not the Paying Agent/Registter bh'all be
regti red, tblupfFener or exchange any, Certificate (1) during the period between the g1ose'o; business
on any Record Date" And the opening of business on the next following jnterest payment date, or (ii) with
respect to any Certificate or portion thereof called Soi' redeinptlyn,prior to maturity, withln,41 days, prior
to Its redemption date.
Recgd Dittt jor ntq east Payment , The record date ("Record fate' for the L)terest payable.on any
Interest paymonf date m**ns the l3th,daY ot, the preceding month.
f
.Q.
sic ai'°„' ?4
TAM B OB CONTONT3
Official Statements
Description of the Certificates 1/2
Elected Officials.-"----------------------------------------- 4
Appointed Officials --....r.-++.....__. 4
Consultants and 9dYisors 4
Introductory Statement 3
Valuation and Debt ~nformatlon - 6
Capital Leases -------o........... 7
Valuation and Punded Debt History 7
Taxable Assessed Valuations By Category 7
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes 8
Tax Rates of Overlapping Subdivisions ---r+....._- g
Tax Rate Limitation 8
Tax Data -------------------------------------------------"-.-M» 8
Municipal Sales Tax 9
t
Top Ten Taxpayers 9
Authorized But Uniss-jed General Obligation Bonds 9
Debt Service Requirements y In
Generai Fund - Staterent of Revenues and Expenditures 11
Condensed Statement of Utility System Operations 12
Utility System 12
The Electric System :.c~---+.._.. 13
The Water and Wastewater System. - - 13/14
Utility Rates 14/13
General Information Pagarding City and Its Economy 16/20
Ratings '"M......-.........-/.-- 21
Tax Exemption 21
Registration and Qualification of Certificates for sale 21
LCgal investments and, Eligibility to Secure Public Funds In Texas 21/22
Legal0pinlons and No-Litlgatlon Certificate 22
Authenticity of Financial Data and Other Information 22
Pinanclal Advisor .~,.f»... " 22
Certification of the Official 5taterger~' 22/23
Financial Statements, September 30, 1983 Appendix A
Form of Legal Opinion Appendix B
The cover page hereof, this page, the appendices Included herein and any addenda, clement or
amendment hereto, are part of the Official Statement.
..3-
f.
I!L.qCTIID OFFICIALS
City Cou ll _ Tenn
ay tep m ,.F es Mayor
Joe G. Alford April, 19x7
Mayor Pro-Tom
Jim Alexander April, IOU
Councilmember
Mark R. Chew Aprii,"IhE7
Councilmember
Jane Hopkins April, 1987
Counclimember
Linnle McAdams April, 1993
Councllmember
Jim Riddlesperger Aprl), 1987
Councilmember
' APPOINTP.D OFFICIALS
Name Position
Lloyd V. Harrell C ty ger
Rick Svehia Assistant City Manager
Betty McKean Assistant City Manager
John P. McGrane Director of Plnuice
R. F. Nelson Director of'OtllUles
Charlotte Allen City Secretary
Debra Adaml Drayovltch City Attorney
CONSULTANTS, AND ADVISORS
Frond Counsel
kcCall, Parkhurst d( Norton
Dal I&$, Texas
PINANC16L ADVISOR
PIRST SOUTHWEST COMPANY
Dalias, Texas
.q.
INTRODUCTORY STATEMENT
This Official Statement of the City of Den^on, Texas, a political subdivis1w, located I,. panton County (the
"City"), Is provided to furnish Information In connection with the sale of the City's $300,000 Cartiflcatas of
Obilgation, Series 1987 (the, "Certificates' or "Certificate").
The Official Statement, was prepared to present for the purchaser of the CertAlkotea, information
concerning the Certificateb, the ad valorem taxes pledged, and revenue available for the payment of the
Certificates, the description of the revenue base, factors that may affect pledged revenues, end other
pertinent data, all as more fully described herein. See "Table of Contents".
Source o Payment The Certificates are direct general obligatiotu payable from, a combination .ot:the
receipts from an ad valorem tax levied, within the limits prescribed by law, on all taxable property located
within the City, and from the revenues derived by the City from the operation of the City's Municipal
Airport,
P~ Proceeds of the $300,000 Certificates will be used for the construction of Improvements to the
City o Denton Municipal Airport.
Issuance of Additional Bonds The City does not contemplate the Issuance of any additional Certificates
o Obligation or General O Igatlon Bonds prior to July, 1987.
Administration offtthee city , , .'rho City, operates under a Home Rute Charter which was approved by the
electorate ebruary 14, 1939, The Charter provides for the Council-Manager form of government for the
City. Policy-making and supervisory functlons are the responsibility of, and vested In, the Mayor and City
Council, consisting of seven members elected at large by a vote of a majority of the residents of the City
for rotating two-year terms. The City Manager 13 appointed; by and serves at the will of the City Council
to execute the laws and administer the government of the City.
a
+r ,
,-r,-
VALUATION AND DEBT IN14.ORTMATI
1986 Market Valuation, Established by Denton County Appraisal District (1) $2,038,3120084
Less Bsternptlom (2)
Mornestead $30 037 931'
Over 65 32;354,874
Disabled or Deceased Veterans 3611814
Agricultural Productivity 134,899, l0 217,848,144
t986 Taxable Assessed Valuation $1,82094630940
City Funded Debt Payable From Ad Valorem Taxesr
General Obligation Baids (as of 10.1-86) 923;72607 0
The Certificates S0000p
Total Funded Debt Payable Prom Ad Valorem Taxes (3) $ 24r226r730
Interest and Sinking Pund (as of 10.1-86) $ 772,210
Ratio Total Funded Debt to Taxable Assessed Valuation, 1.33%
1980 U. S. Census Population - 480063
1986 Estimated Population - 63,586*
Per' Capita Taxable Assessed Valuation - $280629,93
Per Capita Total Funded Debt = $381.00
Area - 42 Square Mlles
• Sources North Central Texas Council of Governments
(1) The appraisal of property within the City is the responsibility of the Appraisal District for Denton
County. The Appraisal District is required under the Property Tax Code to assess all property within the
Appraisal District on the basis of 100% of Its appraised value and is prehihited from applying a^.Y
assessment ratios. The value placed upon property within the Appraisal District Is subject to review by the
Appraisal Review Board, consisting of three members appointed by the Board of Directors of the Appraisal
District. The Appraisal District is required to review the valve of property within the Appraisai District
every four years. The City may require annual review at Its own expense, and Is entitled to challenge the
determination of appraised value of property within the City by petltloo filed with the Appraisal Review
Board.
(2) Pursuant to authority permitted by Section I-b, Article Vill of the State Constltutlon, the City has
granted an exemption of $16,000 of market valuation to the residential homestead of property owners over
67 years of age and disabled property owners. Also, the Legislature, pursuant to a constitutional
amendment and Article 7130h, VATCS, mandated an additional property tax exemption for disabled
veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the
armed forces. The exemption from taxation applies to either real or personal property with the amount of
assessed valuation exempted ranging from $1,300 to $39000, dependent upon the amount of disability or
whether the exemption is applicable to a surviving spouse or children. Additionally, State law provides that
an eligible owner of egriculturalland or timberland may apply to have such property appralsed on the basis
of productivity value or on the basis of market value, whichever is less.
A 1981 constitutional amendment provides local governments the option of granting homestead exemptions
of up to 30% of market value through the 1987 tax year, and up to 20% of market value thereafter.
Minimum exemption is $5,000. The amendment further provides that taxes may continue to be levied
against the value of the homestead exempted where ad valorem taxes have been previously pledged for the
payment of debt, If cessation of the levy would impair the obligation of the contract by which the debt was
created. The City has opted not to grant the homestead exemption In excess of $3,000.
(3) The above statement of Indebtedness does not Include $38,420,000 Utility System Revenue Bonds
presently outstanding, as such Bonds are payable solely from and secured by a pledge of the Net Revenues
of the Utility System, as defined In the Bond Ordinance authorizing the Bonds.
-6-
C*,PITAL EASES
The City has leased and lease/purchased a variety of equipment ranging from reproduction machines to
heavy equipment such as street sweepers, dump trucks, compactors and an ambulance. Annual costs of the
leases are u follows
1%7' 74,322
" thereafter 37,726
VALUATION AND FUNDED DEBT HISTORY
Ratio Funded
Funded Debt Debt to
Taxable datrtaneling Texabfd
Fiscal Assessed at End Assessed
Period Valuation' ! of Year Va! a on
1976-77 136,540,625 ' 12i02400W 8,$I%
1977-78 271,339,229 (1) 11,533,934 4,23%
1978-79 2880902►702 13,2150101 5.27%
1979-80 304,943,680 15,364,488 5104%
1980-81 337,9489941 15,0331000 4.45%
1981182 563,437,088 (2)' 12,935,000 1193%
1982-83 1,049;946;349 (3), .16,702,000 1.39%
1983184 1,070,649j015 17,8401000 1166%
1984183 10133;8239949 261630,000 2.31%
1983-86 1,443$43,438 230726,730 1.64%
1986-87 10820,463,940 23,366,730 (4) 1.28%
(1) Increased basis of assessment frt" 40% to 60%,
(2) Increased basis of assessment from 6096 to 100%.
(3) Revaluation.
(4) Includes this $300,000 Issue dated January It 1987.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property
Assessment
As % of _ Real Property Personal Pro erp ty Taxable
Fiscal Appraised %'of % o Assessed
Period Value Amount Total Amount Total Valuation
L 75- 00% 930733;07 00% 28, ,083 23.00 47 % 124,327}1 3
1916=77 40% 98863p846 !7'2:41% 37f676,179 2.7:39% 13603401'6'25
1977-18 60% 213:133y760 78.35% 581203, 469 21;.43%'27 PO D3f,229
1978-7960% 221,300,472` 76.60% 67j602,230 '23140% 288;902,9'02
1919.80 60% 229,0220620 73.10% 73,921,()60 24490% 304';94!`,580
1980-81•• 60% ` 246,203y248 72.85% 91)743,693 27:13% 3370948`1941
1981'-82 100% ` 450,732y259 0.94% 212,7049829 '`-32;06% 6639437,088
198243 100% 831,391479 79.18% 218;549,070 40:82% 1,049,9461349
19044` 100% 829,133;028 77.22% 244,380,098 , 2278% 41073,'ll3-j'126
1984-85, 100%, 9120491'1939 79.08% ! 241,332,01a '2'92% 11153,823;949
1983'-86`'` 100%` '1,176,2761327'81.48% 267,266,931"e'18i51% _'1,443'1341039
1986187 100% 1,321,636;234' 83.59% 298;827,706 l6~41% 1,820)465)940
!
-7-
MUNICIPAL SALES TAX
ec ve
The City has adopted the provlslons of Artkle 1066c,'Vernon's Texas Civil SUNtes, as amended, which
grants the City the power to Impose and levy a 1% Local Sales and Use Tax wltfllh the City, the proceeds
being credited to the General Fund. Collections and enforcements are effected through the offices of the
Comptroller of Publlc'Accounts, State of Texas, who remits the proceeds of the tax, after deduction of a
2% service fee, to the City mdnt dy, R4veMIe from this sore& has b6 ft
% of Equivalent of
Plscal Total Ad Valorem Ad Valorem Per
,ear Collected Tax Le" Tax R4t'b , CC4 1jtA
4 13 2. .8844224 ` .
IW/76 11194,333 56.66% 0.9632 23.28
1976/77 1,2,14x452 31.98% 0.9234 26.19
1977/78 1;629,832 48,44% 0.6007 31.62
197,8179 20061024 37.,33% 0.7134 39.83
1979/80 2;336;124' 67:62% '0'.8723 ' 47.96
190/81 3,0179806 69.22% 0.5358 59.00
1941/82 39295,302 66.82% 0.3408; 64.17
19.82/83 3,171,313 38.99% 0.3008 63.34
1943/84 3,902,233 63.08% 0.3644 74.76
19$4/83 4!612,202 67.74% 0.3999 /6.23
1985/86 4,745,727 55.72% 0.3288 74.63
TOP TIN TAXPAYERS
1986 % of Total
Taxable Taxable
Assessed Assessed
Name of ax _ yer Nayre Property, V tion Valuation
General Telephone Company Telephone Utility , , 56' 2 f 6~
Taira Pak Packing Manufacturer 39,871,19$ 2.19
Peterbullt Motors Company Diesel Trucks 3801740810 2110
Victor Equipment Company Welding Equipment 18,03,450 1.03
Andrew Corporation Electronic Equipment 1804770709 1.02
Denton Mall Shopping Center 13,Mot 5}~~ 0.76
Acme Brick Company Brick Marud#Cturer 1,702 r0ol , 0.70
Woodhill Assoc!ates ; Develo1w 101523,750 0.38
Joe A. Belew D"Olopet 1012331060 0.36
Joseph F.Sext", Developer 8 029 b43 0.44
21 I I -rJ%
AUTHOR4ZEa BUT W1SSt1,4Q GEO&RAL OBLIGAJ'ION BO[VD$-NONE
I
.4.
DEBT SERVICE REQUIREMENTS
YEAR
ENDING OUTSTANDING BONDS THE CERTIFICATES GRAND TOTAL PRIN% OF
CIPAL
9/30 PRINCIPAL STEREST- TOTAL REQUIREMENTS RETIRED
1987 $ 860,000 $ 2,915,906 S 3,775,906 $ $ $ 3,775,905
1988 1010,000 1,534,526 314449525 25,000 58,125 $39125 3,527,650
1989 2,365,000 1,396,315 3,761,315 25,000 36,813 61,813 3,823,128
1990 1,760,000 1,251,550 3417450 25,000 34,875 59,875 3,077,426
1991 1,755,000 1,134,528 2,889,528 250000 32,938 579938 29947,466 36.12%
1992 1,745,000 1,008,533 2,7539633 25,000 319000 560000 208090533
1993 1,765000 8780653 2,643,653 25,000 29,063 5',063 2,6979716
1994 I0820,000 742,395 2,562,395 25,0100 27,125 52,125 29614,520
1995 1,740,000 6039595 2043,595 259000 25,188 50088 2,393,7$3
19% 1,8250000 461,865 2,2861866 230000 23,250 48,250 2,335015 13.35%
1997 1,745,000 318,193 2,063,193 HMO '21,313 46,313 21109,506
1998 1,480,000 186,840, 1,666,8{Q 26, '19,375 44,375 'ljll 216
1999 10520,000 63,0610. 1,583,060 25, b0 17,438 429438 1,625,518
2000 4609808 1,054,192 1,50,6,000 25',OOg :15,500 40,500 1, 546,FOO
2001 326,700 878,300 1,206:000 25,600 13,563 38,563 1,243,563 96%
.66%:•
2002 273,728 861,272- 1,136,400 2¢,000 110625 369625 1,171,625
2003 232,457 837,541 I,07.0,000 25VOOD 9,6$8 34,6$8 1,104,688
2004 153,037 616,963 770;000 254,000 79750, 32;)90 802,760
2006 260000 5,813 30,$13 300813
2006 25,000 3,$15 28,675; 28,87$ 96.90%
2007 25,000 1,93$ 1§038 269938 100.00%
23,726,730 $ 16,750,241 $ 40,476,977 $ 5000000 f 426,255 $ 926,255 $ 41,4039232
i
INTCR£ST ON THE CERTIFICATES HAS BEEN CALCULATED AT TO FATE OF 7.760% FOR PURPOSES OF 'I?;LUSTM7XDN.
STATEMENT OF OWN F EXPEh DTTURES
Fiscal Year Ended
---9.
Rleveeu"
Tam $ 905921436 $ 3,22i,632 $ 7iQ4Qr749 $ 6,331,425 $ 3,231,641
Uicwws and Permits 3561661 3030725 3i 937 96`943 ;2'123
i#il,ty Franchise Fes:, N4 i l71 / 1E,6~0 400,
Pines and Forfeitures 713,044 616,826 361,x14 379,403 2220363
Fees and Serviru 8980441 298,413 I80,159 I59,971
Interest Rev"" 277,637 191,995 103,207 133,433 Iti 0453
Intergovernmental 247,130 270t469 282,633 231032,.9 203,126
miWeRarmMs 154,414 612#173 427,056 ?67,130 197,750
Capital Leases 1120913
4 S3 602 3304 SOS
Transfers In 3 183 134 # 813 990 3.019.%3
Total Revenues 03 4~7 4 31-4,238,010 31 23
expenditures:
General Government $ 60042,943 $ 4,388,155 $ 4,139,406 $ 7,708,003 $ 6,515t382
Public Safety 6,21,4,603 5,433,47.4 4,923,416
Public Worms 3,0379692 2,730,322 2,144,333 2,946,121 2,523,049
Parks" Recreation 105000819 7,368,.#83 1,173,368
Other 729,391 b61,036
Capital Outlay 660,929 329,179 476,929 2350203 I68,OS7
Transfers Out 822 839 237 733 109 266 113 823 249 134
Total Expenditures 18 34 ,825 14 72' 1 8 718 l S4 7 10 8 4
Exce„ Revenues Over
Expendltures $ (327,812) S 1,0201334 $ 1,249,292 $ 180391 $ (383,835)
Put ' Balance October I 2:616, 49b 1, 396_,142 346, 850 3281439 712, 2,314
Fund Balance September 30 $ 2,28E 674 1 616 446 1396 142 346 9SO 328 459
11
A
CONDENSED STATEN YSTEM OPCRAT1G3N3
Ffacal Year E S ptember 30
I9T3 - 1994 198 !9 2 1981
Gross Revenues
l!lrctrlc $37090;773 $4J9229372 $33,376,243 $31,8349199 $23,943,169
'eater and wastewater 99307,174 10,0909967 3,831.00101 31532,046 4,234/310
intb4eitincome 2,'383,217 912~1d1 ;00.4 1,383,374 103'96;223
Other lncortle 2 MI 083 3'1 , % 2 '49.0 2'6>6' 7
Total t '
Ex si
Fuel and Purchasbd Power $4301113p 139 $970730,282 `$260946,600 $229387,647 $1210511it"
Other Operotlft ehid
ll'dminlatrertlVe Ekpenses 10 439 900 160130351 8112 922 42 0
- r903041
Tote! ~ 32
ox
'Net Revenue Available Or
Debt Service and Other
Lawful Purposes $1ll r157,204 $16,793,563 $ 70133,898 $ 8,224,604 $'6';779 33b
electric Customers 280337 24;686 200027 19,363, 1'30336
Water Customers 16,376 130192 ][41198 13,889 1Sj331
.newer Customers 130'432 14,1498 13;668 13 33; 13 ,0?I
Notet''Fiscal Year 1983 - excludes fttraordlnary~geln of $3,189;308 on advance refunding.
.....J~_-
AvefsEe AnnualC)eht Servlce,1986/200$ _w
: ...J.V.,w.. $'3:;366,918
Coverage of Annual Debt Service by 9-30-83 Net Revenue - -----.www 3.39 Times
MaxiMutn Annual Debt Service 1987'' 30.83 Net Revenue y-+-~ - L
Coverage '79l,763
of Maximum Annual Debt Service by 9- 3.16 Times
Utility System Revenue Bonds Outstanding, as of 9-30-86 - $40,4409000
Utility System Fund Balances of 9-30-86t
Interest and Sinking Fund----
Reserve Fund $ 196
Emergency Fund 90000,000
230,000
UTILITY SYSTEM
In March of 1983, the City Issued $23,280,000 Utility System Revenue Refunding Bonds to refund
and legally defease the existing bonded debt of the Electric System and the Water and Sewer System of the
City and to combine the separate systems into a single utility system.
The Public Utilities Board
By City Charter, there has been created a Public Utilities Board (the "Board") composed of live
members, appointed by the City Council with the City Manager and the Director of Public Utilities serving
as ex-officio members of the Board without voting privileges. The Board serves the Department of
U'dlitles as a consulting, advisory and supervisory body.
The duties of the Board are summarized as followst
1. Review of the annual budget artet the transmission thereof to the City Council.
2. Review of recommendedt
a, expansion of, additions to, betterment of, or extensions to the Utility Systemi
b. Incurring of debtl
c, issuance of bonds, and
d. fixing of rates and charges.
-12-
I
yyy111a
3a Sbbmisa:..h, aril OW to Pla M4 said, U41% Cerrtmissdbh i list 611 reco Wend6d, caettal
Improvements which, In the opinion of the Boards M►oU1tf' `bt+'cor rllbfetl •dur*d,-tN
forthcoming five (5) year period.
All actin ns of the Board are sub,lect to final approval of the City Council.
TN!! E!w!"CTRIC SYSTISM
Gener~i ~ , ; , I
The Clty at Detlton hM 6*nod and `operated lts 81sdttle'System, (N ;"Elec61c System") for
approximately 79'yenrs`wlehoiit'1Merrlptlorl: ' buring ttrls't)mb,'d+~+ niectrlc''8ytitenn 04i experienced a
steady growth M Customers and'bwtput,'requlrlii, periodic atl(litione to'plantand dlstributioWfacles.
Service Area
The Electric System provides electric service to 24,686 customers located In the City. The City
has covenanted In the Ordinance that it will not operate, and will not grant any franchise or, to the extent
It legally may, permit the acquisition, construction, or operation of, any electric. energy distribution
ferilitlef which would be In competition with the Electric Systerll, Wid, to the exten't'that it 16SAy may,
the city
will prohlblt any such competing' faellltfea.' -
:
THE tVATER AND NASTEWABR SYSTEM
:4 :f
General
The Water and Wastewater System'proOldes total] water and wastewater service to all customers
located within the city l£mlts, as well as wholesale water and wastewater service to the City of Corinth.
The water distribution system consists of 325 miles' of water mains, 3 million gallons of ground storage, and
4.36 million Sailor, I elevated storage. The City believes it Is In compJlance with all State and Federal
water qua£Ity requi, ements.
Water SyRply
The present municipal supplies are obtained primarily from surface sources, but underground
sources are available for etnergency and back-4 purposes. The City has previously acgaltbd; di sbrVdtlbri
storage rights In nearby Lewisville' Reservoir whleh was constructed by the U. S. Corps of Engineers. This
Reservoir contains s total of 43di000'ser6 feet%at onservation storagge. The City holds tttb''rlgh'ts'tb 21';060
acre feet of storage, with thr b►laneo'bein !held by the City of Bolles ("Dallas"). The State of Texas
Water Rights Commission has awarded the City 4,6 million gallons per day In water rights from Lewisville
Reservoir with the right to "perfect" an additional 5.3'inllillon'gallons per day. The City presently uses
approximately 9 million gallons per day, as an annual average, and purchases from Dallas all amounts over
4.6 million gallons per day. The water contract with Dallas Is similar to the contracts for retail and/or
wholesale water that Dallas supplies to eighteen (18) other North Texas municipalities. The City Is
presently purchasing water from Dallas at a rate of 36.72 per 1,000 gallons. Water quality meets all
rex-i Department of Health and other State standards.
h
Future Water Supply
In '1980, the City and Dallas contracted with the Corps of Engineers for the construction and
development of Ray Roberts Reservoir In Denton County, located Immediately above the present
Lewisville' Reservoir on the Him Pork of the Trinity River ten miles northeast of the Clty.'In the contracts
with the Corps of Engint+etsi'the City will pay *for 26% of the e'an'structlon'cost "PW pullets will pay 'W
74%. Water obtained from the reservoir will he pro-rated on we basis of each city's proportional shtitts df
total construction costs. The estimated completion data Is approximately 1986 with water being available
from the Reservoir In approximately 1910.!' Tl e'batht ated'ofe yield of the Ray Roberts Reservoir had
been calculated at 76 million gallons per flay, of which the City would be entitled to receive tip to 194
million gallbno pet day.' IN$ amount, plus a safe yield of 4.6 million gallons per day avalU61o, frOM4 tMl
present water rloty4 lt~6tn't1tie,Le*l"e'lk&vAvo1[r, will be sufficient to meet the City's estimated water
needs through the year 2003. The City has conducted a long-range water supply study to determine water
requirements and alterMtiVes ditlr thb year 2000.
'Hater Treatment Plant
The Texas State Health Department recognizes the mic(Imum capability of the plant to be 18
million gallrirwoiet dayl jT*1`1istorlcil peak day was 20.4 million gallons. The City has made ltt£prov*WOhtg
1 ~
,
In #W Water $4ter media of the,Plant *%rh wilIATOY14e treatment capability at, 24 MGD based on the
T"w, State Health D"rtment rage 0WA
Water Usage - (Gallons)
Average Maximum ' r Average Maximum "
PWL ! .1 MW Day
1970 6tL22,000 12,6200070 1921 7,117,132 13,003,000
1975 70216,222 13t3309000 1"2 6,937,193 10,933,00
1976 c 7 ,.2600000, 10,01Wi000 19$9}' 7.,333000 17r171,00Qp~~ .
1977_.70923#W0 ' 44, I1 ,000 19st , 9,7000000 ! 20t400,000
1972 $x394,009 16,46i,OW! 4`1x43 9,903,1)00.. 2090304Q4
1979 7,9209220 10,360,000 1996 100020,000 22,2009000
UTILITY RATES
It is the Clty's policy to s evl4iv„eiectrlc1 water and wastewater rates on an emv+al.baals to as>,ure
adequacy and equity. lndependrmt consultants and City Stott 8enerally, perform,,thl+ review= cat'an
alternating year basis, ]tote recommendations are submitted by the staff to the Utility Board for review
and approval, which tnen makes repammendatton to tM Clty Council for final approval. To date, the City
Council has approveI all rate recommendatlons of the Utility Board.
Electric Rates
(Effoc ve anuar'yrit 19$6)
R dtntlsll,
Facility Charge $ 6.50 Single Phase
11.00 Three Phase
Months of November through April
Up.to 4,000 kWh $0.0113 per kWh plus an
ever 1,000' kWh srtergy cost adjustment.
$0,0063..per kW(t,plus,an
onergy coat adjustment
Months 1 May thrauxh Octoiker
Up to 1,000 kWh $0.0563 per kWh plus an
energy cost adjustment
Over 1,000 kWh $0.0615 per kWh plus an
energy cost adjustment
Notes When usages are less than 700 kWh per month during May through Cctober, the mosrihly facility
charge 1s $5,50 per month and the energy charge is $0.0463 per kWh, plus an unergy cost adjustment.
E Cos d s m The -earlable cost of fuel and, purchased power listed at $0.0223 per
kWh for b 'rf1rB g~ mprt~tb November through April,, and at, $0.0273 per, kWh for bWln$ month May through
Actoper• . , _ ,
,Gatamercilal,;~rld.lr,~is striaJ,
F,>clitty, Charge $10.00 per month (akgle phase);
$ I
r 1 S a 00 Per month (three phass)
I.
Demand Charge $ 6:40 pet, kw as ornand I , ; .
(Minimum demand is 70% of maximum monthly
demand for May through October)
, r, I
Etter~r (:h+irse . ~ , ; ~ $0. Q333 psr', kWh P142 A" wlgsrgy''
cost adjustment
-.14
(effective cem er 1, 1934)
Residential
Facility Cberge 3/4" meter 4.50 11014011th
I" meter 3.25 per month
1K" meter 3.25 per, month
2.0" meter $9.00 per month
Volume Charge
f November t_hreah April May through October
-
$1.45 per 1, 8000 al lone st 20,000 gallons
1. ~er`I,g~7u lone
Over,, 20,000 gallons 1.90 per 1,000 gallons
Cornmorc;W atrk! Industrial
Facility Charge 3141 meter 9.50 per month
P meter, 104901pet,reonth
th" meter 113.25 per month
2.0" meter _ $15.00 per month'
Voluble Charge $1.40 per 1,000 gatlom
Customers outside city limits pay 130% of the above rates.
Wastewater Rates
(Effective December 1, 1994)
_Residential „ Commerq!gindustrlal
Facility Charge 3.00 pplus Facility Charge perp,
Volume Charge 1.50(M gallons Volume Charge 1.63 gallons /
Notes All service outsldc: City Limits at 150% of above rates.
R~qe. Ike ulation Within Its boundaries, the City has exclusive jvrlsdsCtlas over the electric,
water and sewer system' rates.
'I I ; : r, : ~i i:•+1,~ 1,i. .~,r. a ,~,.q„ ~ t rr;
.1s .
GENERAL,INEORMATION Rf1GARDMIG CITY AND ITS ECONOMY
LOCATION
Denton Is the County Seat of Denton County, located at the apex of the Dallas-Fort Worth-Denton
Industrial triangle.
The City covers an area of 42 square miles and Is located only 38 miles from downtown Dallas, and 36 miles
from Fort Worts.
ECONOMY
Denton is .
Iri the midst of a rich agricultural sad Uvettock area.
The hub city of Texas' new "Land of Lakee rglaN which provides Denton and neighboring titles
with abundant water for municipal, Industrial and recreational purposes.
One of the twee major universlty centers In Texas:
The home of dlverslfled Industrial Interests.
The site of the Nation's first underground Control Center of the Office of Emergency Planning and
Office of Civil and Defense Mobilization.
One of the key cities in the economically significant Dallas Consolidated Metropolitan Area.
ECONOMIC RANKING
The following data wan taken from Survey of Buying Power, Sales and Marketing Management, Ju!y
28, 1966.
Medlan Age of Population 27.1
96 23 - 34 tion whose ate iss 24
19:9%
35 - 49 15.7%
50 - Over 18.5%
Households 21.0 Thousands
Net Effective Buying Income (0001x) 643,791
Medlan Household EBI 22,497
% of Households by EBI Group
$10,000 - $19,999 23.7%
20,000 - $34,999 24.0%
35,000 - 549,999 13.8%
50,000 - Over 16.9%
Buying Power Index - .0275
Retail Sales (000's) $4390913
Pood 96,833
Automotive 51p354
Eating and Drinking 33,540
General Merchandise 780797
Furnlture-Home Furnishings-Appliances 10,489
Drug 9,111
ECONOMIC AND POPULATION GAINS
Denton has noted a consistent population Increase and a steady economic growth In the last far
decades.
- Ii-
Historical population totals from U. S. Census records area
1940, Conan IIrI92
1930 Conan ~l>372
190 GeriNls - «..,:,26,90'00
.1970 Census 391$94
1980 Census 4x,063
The North Central Texas ,Cokwil'of, Governmenta,eatimatea thq I9rj6 population o~ tfiq City at
The City's ascenalon toward a 19p.r4% on.?OKO *C9n9Mi;r* 10041er,ls attributed pxrtiy;tp: the stoody
influences of governmental activity which Includes the year-by-year expansion of the two State-supported
universities, and partly becaw of such environmental lectors at,its.ioc ation In a rlich,agricultural region,
aom oll wW gassproduction In the northwest 1ectlon.of Dontort County, Its Inclw1m M,the:Dallat-Port
worth Motroplex, Its proximity to, three; of; Texas'. largest reservoirs ka Texoma Is only, 40,im1ks from
Denwot its excellent highway, and transportation,focilltlgs, lts,mlld cllmateo and the, less;ta-,glble but
Influential aspects of soclal, cultural and educational advantages that have prompted professional or "white
collar" workers to choose Denton as a place of residence.
It4OUSTRY AND 6i$1N&$5
.
In excess of 73 diversified manufacturing plants are located In the City.. Some of the largest are as
foilowst
Com Product,,
Firma moJo 1 Over 5001 ldI
`Moore ua ness orms, Inc. Business forms and systems
Rwselb-Newmpn Manufacturing Company Ladles lingerle
Victor Equipment Company Gas cutting and welding equipment
M/A/R/C,,,., Marketing, research .
Peterbilt Motors Company Diesel trucks .
SallylB"uty:Company, Inc. Beauty supplies.
Firms Employln 23R 0 to 499n
-`Josten's, Inc. High, school and mliltary: rings
Lattimore Ready Mix Ready-mix concrete
Firma Bm fo kn I00 to 2491
Acme Br c c Company Bricks, clay pottery
Andrew Corporation, Texas Division Radio frequency antennas,
microwave dlsh antennas aiid earth
stations
Denton Pub!lshing Company Newspaper.publlaher. Harley, Bag Division of Union Camp Multi-wall paper bags
Lead Mailing Systems Labeling and Inserting of direct
mall packages
Moore Businessk Systems Small business computer
The Morrison Milling Company Consumer and food service mixes
Tats, Pak, Inc. Aseptic food cartons
Turbo Refrlgeratlon Company Industrial ice makers, plate heat
exchanger, heat exchanger tubing
Firms Em Jv In 30 to 991
Golds, n rlarlg P 1ticsy Inc.:. Molded parts and plastic
Harptal Seed, Inc. Seed - farm, turf, vegetables
Kolmnr Laboratories, Inc. Frivate label cosmetics .
Marley Millwork, Inc. Custom cabino% doors, components
!5) and moulding
Orthane Divislon,of Ohio Rubbet; Company Polyurathane lnlection molded and,
cast products.
Trinity Industries, Inc. Pressure vessels, railroad tank cars j
Tr14terel. Structures Pre engineered steel frame houses f
Sourcet Denton Chamber of Commerce.
17. ,
.
14DUSTRIAL FUTURE,
Denton Is most favor ably loltated within 38 miles of two major cities (Dallas and Port Worth) and is,
officially, a parr, of the Dallas-Fort iVorth Metroplex. This area comprises a market which Is grD.ving at a
rate three tlmos the national avera;&."Denton Is fast becoming an intigral part of this dynamic Industrial
complex.
A piontiful supply of skilled hAsor Is available to Industry In the Denton area. Total labor force In
Denton County asi'of August 31, 1986 was 106,301, With approxlrriately 100,247 presert0y employed and
6,039 unemployed - for an unemployment percentage of 5.796. There are three prlnclpal lrtdtlatrlat
districts Denton Industrial Park, Rayzor Industrial Park and West Park Industrial Parlr all of which
have accbss'to more than'ad"mte tall and highway lacitltlee, and all necearary utliitier.
Re+went Davelop"nt, WrJk Pik' Ina., a 1 s)iat corporation, la a member,
of the International Tetra
Pak ddrone oo om es, he firm spe+:lsaizes Its aseptic packaging which allows liquid foods' such gas milk
and fruit juice to be stored, shipped arkV merchandlseki without refrigeration. Thv 0160 conatits` of a
210,000 "re toot warehouse at 's cost' of $40,000,0002 with a total employment of a bt irnately 200.
AGRICULTURE
Denton County Is one of the more dlyorslfled agriculture counties In Texas. With Soil-'typas ra %k*
from rich black to deep sandy loam, and good soft, artesian water, It Is an Ideal center for diversified
farmirig and 'vestock raising.
Principal crops are cotton, corn, wheat, oats, hay, grain sorghums and peanuts. Dairy cattle, beef
cattle, sheep, hogs, 'chickens arx! turkeys contribute a substantial and steady Income every year to the
farmers and ranchers of the county.
L:
Income from all agriculture'" livestock lin- acts averages In excess+of's30,000t000 asvrually.'
The Texas Agricultural Experiment Station, Sub-Station No. 6, located about five miles rwtheest of
Denton, Is contributing to the prosperity of not only the farmers In Denton County, but tolaek",* all over
Texas, through experimentsin small grain research work, crop rotation, pastureat soA building !contouring
and plant disease.
UNDERGROUND Ca TROL CENTER
. ..r- I 'I,
;
Denton is the site of the first Underground Control Center to be built by the Federal Government In
the Ualted Siates. This center was completed at a cost of $2,400,000.
it consists of an above ground "frangible" building, for entrance and exit during normal operations,
ancha two-story underground fortress, 142 feet wide and t72 feet long. The structure has Its own water
well, an Infirmary, first aid station, and communications headquarters. Site for the structure; Is about
three miles east of Denton.
The huger underground center serves Region 5 Headquar'ers for the Office of Civil and Defense
Mob.lilzation and is designed to resist nuclear blast and radiation. °;;glon 5 consists of Texas, Oklahoma,
Arkansas, Louhilana and New Mexico.
In time of emergency the center will house the administrative personnel of 160000 federal employees
it Dallas and Part Worth. In the avant of a national emergency the center would serve as the ewdihating
and directing point for the activities of some 235,000 civilian employees of the federal government. It will
house 200 persons on a day-to-day basis, or 300 on a 30-day, emergency, "buttoned-up" basis.
The control center +tmploy6783 full-time people with an annual payroll In excess of $750,000."
TRANSPORTATION
Denton Is located only IS miles northeast of the Dallas-Fort Worth International Airport. This
facility began operations In January, 1974. It Is the largest-airport In the United States, second largest in
the world, and represents an investment In excess of $700,000,000.
Denton 1a the focellpolnt In the new Interstate Hlghway System (U. S. 334 and U. S. 35-W). PJ. S.
35-E connects Denton with Dallas, and U. S. 33-V ties to Port Worth.
- la .
The east and west, soctlos of the U, S inter;tate.,33 form port,of a, vast network that boos at the
Canadian border on the north and traverses the entire United States, to end at the Mexican border on the
I south. North from Denton the highway connects with Oklahoma City and thence through the Midwest.
Rail transportation is furnished by three railroads Atchlson, •Topeka and Santa Fe, Union Pacific-
Missourl, and,,,, Mlsaowi-KanswTexsa... bus transportation by. . Continental Trailways', But
System motor freight by twelve track Unas.
EDUCATION
Denton Is the home of, North Texas State University, founded In 1890, mW Texas Woman's Unl-
versity, founded In 1901.
The two colleges have a combined enrollment of approximately 29,220 studeott, and more than 10000
faculty members.
As of the 1986 Pall semester, 21,445 students were enrolled In co-educational North Texas State
University. This university has a larger,enrollment than Southern Methodist University. at Dallas, Texas
Christian University In Port Worth, or Rice Institute at Houston. Texas Woman's University has an
enrollment of 7,775r
North Texas State University campus compr)ses a land area of more than 400 acres valued In excess
of $150 million. The University embraces seven academic units of colleges and schools, and offers
Bachelor's degrees In 66 fields and Master's degrees In 113 areas, Doctoral programs are in 43 areas.
Texas Woman's University, a major State-supported teaching and research Institution, is the nation's
largest university for women. With approximately 500 faculty members, 90 percent of whom hold the
Doctoral degree or other appropriate terminal degree In their field, TWU stresses small classes$ personal
attentlon, and excellence In teaching. Through Its ten schools And colleegges, TWU offers programs leading
to the Bachelor's degree In 77 major areas, the Mastoes In 72 flaidsi and the Doctoral degree M 42 areas of
specialization. Sclence research programs are conducted In dwroistry, biology, physits, nutrition, textiles,
bone mlcroradlology and other rela'ed fields.
Denton -has an outstanding public school system, with all elementary and secondary schools fully
accredited not only by the Texas Education Agen,~y, but by the Southern Association of Colleges and
Schools. Only 82 school districts have earned that distinction on both the elementary and secondary levels.
The Denton Independent School District operates one senior high school, two junior high schools and
seven ele..ientary schools for Its more than 9,300 students. Contracts have been awarded for the
construction of two new elementary schools, which is the largest growing segment of the Dlstriet's student
population. The two new schools are expected to be completed by the Fail semester 1987.
The District offers classes at each school and at the Instructional center for students who
experience learning disabilities or handicaps. Counselors, speech and language specialists, psychologists,
and readip and diagnostic consultants are available for ail grade levels.
$:1,000,000 Denton State School Construction began in 1958 on the $11,000,000 Denton State
School, with the first phase of the construction being completed In July, 1960, at which time the first group
of students was admitted. The second phase was completed in 1963. It Is one of America's most modern
and progressive educational institutions.
This State-supported educational Institution for mentally retarded Texas residents Is located on a
200-acre site paid for by Denton citizens.
Present facllitlet lnelude 47 (including outreach dorms) dormitories which accommodate more than
1,138 students, 5 buildlrtigi for physleailyrhandicapped chlldren.*AthA capacity of 600, and a 52-bed acute
hospital with supporting facilitles Aich,aa X-fay,, laboratory, dental, and pharmaceutical. In addition to
these buildings, there is a modern administration building, an academic building, a large laundry, a
maintenance shop and a warehoqu.
-14-
The School has a staff ob 1,4A9,, with pan etmushpayroll in exem' of $111,000,000.
There arty six. banks.
In the City.,*,. MBank DerstoA, established 11112:.: Rlrst' Stars Bank,
estabilshed1912 , USBankj establlshsd, 1%3 6.~. Ctdzsra National Bank, ostabaghM 1977'... Prowidaijt
hank-Denton, opened April, 1983... Texas Banc of Denton, estebtisWA981J.
Combined flank Deposits
'1974 S131'i01E,OQO, t980. S22E~11t3,'t23 r;
1973 1400747,770 1981 234,367`1391
1976 1670803,982 1982 289,978,804
-1977 175j006p073 '19113' 383j319 2PI
1978 1981908,000 1984 4800179,372
1979 207,0830011 1983 328,167,948
Two savings and loan asaoolations had combined year:•end deposits as follows;
1974 $ 66,202,425 1980 $139,333,122
1973 69,310,398 1981 160,6741680
1976 84,238j471i1982 1370952,0112
1977 941168c237 1983 214,0607,935
1978 103j901r284, 1984 2204311799
1979 127,299,490 1985 242,9530799
RECRBATION;,.~ , i
Nearby Lake Lewisville, one of North Toxas' largest lakes, is one of Texas, most[poputar'redreation
areas. Lake Lewisville has,a, stwre line of 183 miles located entirely In Denton Countyi-
Lake Lewisville attracts over 3,000,000 visitors to Its shores annually. The upper reaches of the
Lake are only about :3 miles east of thwDehton•City Limits, white the,dam is 15 miles from downtown
Denton.
Grapevine Reservoir, iuwther large body of water created by the U. S. Army Corps of Engineers, is
located In Denton wW Tarrant Counties, ,The dam is 23 miles from'Dentdn
Parks and recreational areas abound on the shores of botin Lake Lewlsvllle and Grapevine reservoirs.
Boating, fishing, hunting, avdmming and all water sports are the favorite recreational pastimes at both
reservoirs, which, because of this area's favorable climate, are In use the year round.
Growth Indices
Calendar Bullrclno Gas Water Plectric
Year Permits Meters Meters Meters
1974 X12,[42,334 MIN; 12,077 14,1!7
1977 22,244,073. 12,294 12,490 13,650
1978 32,324,274 12,661 12,803 160404
1979 71,556,446* 13,224 13,094 170130
1980 3304340504 13,366 130292, 18,123 -
1981 40,337,746 130680 13j506 18;343
1982 38,0610423 130930 13,889 190565
1911 IOIjI63j773 14,260 140198. 201027:
1984 130,537,976:14 j343 15,192 2404.314-
01113 138„7630971: : 1.4,037 ; 16,373 2E,3~7 ; .
?1
* includes construction of Golden Triangle Mall and Peterbllt truck factory, r
20'-
RATINGS
Applications for contract ratings an this tissue have been made to Moody's Investors Servlce, Inc. and
Stwy*wd de Poor's Corporation. ~An explanation of ties Wpifirmma of such rating may, be obtained from
ft cernrpany furnishing ttesrating. The. r itings reflect only the respeotive,views of such orlwotatlaa'and
the City makes no representation as to the appropriatengs at the ratings. There is no assurance that Rich
ratings will continue for any given period of time or that ttey w111 not be revised downward aa -withdrawn
entirely by either or both of such rating companies, It In the judgment of either or both companies,
circumstances so warrant.: Any such downward revlsion,or Mlt1Wtrs*W 4f !elan ratings, or either of them,
may have an adverse effect on the market price of the Certificates.
TAX. EXEMPTION
In the *nlon of Bond Counsel, except as dlicussed below, under existing 44w, interest on the Certificates
Is excludcible from gram income for purposes of present federal1ncome taxation, In eXprsrasiog their
epinlon *Alto ens exemption of interut;feom =tederiel Income taxes under the Imernal Revenue, Cede of
1186, flora Conxisel.will rely upon the Issuer's No-Arbiwap Certificate, and Assume compliance by the
Issuer with ceruAn covenants of the issuer with respect to the use and inveitmant of. the proceeds of the
initial Certificate, including any required rebates of lnveQtment proceeds to the U.S. Government,-and the
filing of all requb cd reports concerning the foregoing. The law upon which the comiusion stated In Bond
Counsels opinion is based is subject to change by the Congress,-the Treasury Department and later judicial
and administrative decislons,
For taxable years begltuung in 19870 a portion ad the interest on the,Certiticstes will be Included ss.an
adjustment for bode income ore adjusted earnings and profits to calculate alternative minimum taxable
income for purposes; of determining the alternative minimum tax imposed on corporations by section 33 of
the Internal Revenue Code of 19$6 and for purposes of the envlronmentai tax Imposed on corporations by
section SM of the Interns! Revenue Code of 1996.
The Internal Revenue Code of 1986 includes as an individual and corporate alternative minimum tax
preference Item, the Interest on certain "private activity bonds" Issued after August 7, 1996. In the opinion
of Bond Counsel, If the Issuer complies with the covenants referred to above, none of the Certificates will
be a "private activity bond's the Interest on which is treated as an'alternative minimum tax preference
Item.
8xcept as stated above with respect to.the exemption of the Interest an the, Certificates, from federal
Income taxation, Bond; Counsel .eupressea no opinion I" -to, any .other,, federal lnobrtte tax cotisequanaa;dt
aogttlring, carryk%p owning or disposing, o! the,Certlficates.• , There can be no assurance'givenAhat
legislation willnot be enacted by this or.* f.:ture Congress in a form whl,,h-would; adversely, affect the tax
treatment of ownership of the Certificates.
Holders of the Certificates should be aware that the ownership of tax-exempt obligations may result In
collateral federal Income tax consequences to financial Institutions, property and casualty Insurance
companies, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may
be deemed to have incurred or continued Indebtedness to purchase or carry tax-exempt obligations. 01
addition, certain foreign corporations doing business In the United States may be subject to the new
"branch profits tax" on their effectively-connected earnings and profits (including tax-exempt interest such
as Interest on the Certificates.
REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE
The sale of the Certificates has not been registered under the Federal Securities Act of 19330, as amended,
In reliance upon the exemption provided thereunder by Section 3(a) (2); and the Certificates have riot beta
qualified under the Securities Act of Texas In reliance upon various exemptions contained therein; nor have
the Certificates been qualified; uhdorr the securities acts at any j i5ddiCtion. The City assumes no
responsibility for qualification of thw Certificates under the securities laws of any jurisdiction In which the
Certificates may, be,w" assigned, pledged, hypottecated or otheewlse transferred. This dleclaimer of
responsibility for quslification,for.sak or, other: disposition of she Certificates sl" not be caonstruW aran
Interpretation of,any kind with regard to the availability of Any exemption. from securities registration
prohisions.
LEGAL INYES-fMBN-T§ ANQ E1,IQWLITY.,TO SECURE PUBLIC FUNDSIN TEXAS
Section of the llond Ptocedures Act of 1991 a statem t "All bonds Issued by an issuer shall Constitute
rragoti" lnstruments, and we kvestmept saarrities governed by Chapter 4 Texas Uniform ComnwtW
I
- 2l~
Code, notwithstanding any provisions of law or cant decision to the contrary, and are legal and authorized
Investments for banks, savings banks, trust companies, building and loan associations, savings and loan
aasoclatlpns, insurance companies, fiduclarleN and trustees, and for the sinking fund of cltles, towns,
YIU&Iesl school districts, and otherpoiitlosi subdivisions or public agencles of Ow State of Taira". The Act
Ourther, ptarWa, that " bonds are ellgibie to secure deposits of any public funds of the statk Its agate
arttf political subdlvlaloru, andare 6egahsetwity for Maws depo" to the extent d tMir as wkst value. • No
review by the City .ha;been made of the Ism In afte Si 4lks M deterrrlne olmO r the Cootificaw aft
legal Invewtrmnts,for various Institutions in Owes states.
LEGAL OPLNX)m s~ND NO•LJTIGATM CERTI,FICAT§
The City will furnish a complete transcript of proceedings had Incident to the authorization and Issuance of
the Certificates, Including the unqualified apprbvittg legal opinion of the Attorney General of the State of
Texas, to the effect that the Initial Certificate (for which the Certificates will be exchanged and
Substituted) is a valid, and legally. bMtfing' obliption ,of the City, and based upon examination of such
:ratwGriptof,proceedings, the unqualified Approvirtg,legal opinion of Bond Counsel to toiLeffebt that the
Initial CertHkote, and-ell Certificates duly reglatereds eutthetntkateds and delivered in ambrdannee with the
Ordinances &",valld and4egally binding obilg4id" of the Cityy and to the effect that the interest on the
Initial Certificate and such Certificates is exempt from federal Income taxation under existing statutes,
regulatlons, publishe:d.ruling& and court decisions, subject to, the explanations under ITax Exemption" above.
The customary closing papers, lncluding;a certificate to the afkeet that no litigation of any,natute has been
filed or IS .then pending, to restraln thoAssuarK* and delivery of the Initial Certifkates or which would
affect the provision made for Its payment or security, or In any manner questionittg tht validity of saw
Initial Certificate will also be furnished, Bond Counsel was not regoested to participate, and did not take
part, In the preparation of the Notice of Sale and Bidding Instructi4ms, the Official Bkf Form and the
Official Statement,. and such firm has not assumed any responsibility, with respect thereto or undertaken
Independently to verify any of the information conttalned therelni, except that, In its c&Wlty as bond
Counsel, Such firm has reviewed the lnformation~ describirgi the Initial Certificate and the Certificates In
the Official Stat•nment to verify that such description contbrms to the provisions of the hoed Otidbtence.
The legal t,,e to be paid Bond Counsel for services rendered In connection with the Issuance of the
Certificates Is .ontingeht on the sale and 'dellvoey of the,Certificatee Thl legal opWon wlli be printed on
the Certificates,
AUTHENTICITY, OF FINANCIAL DATA AND OTHER INFORMATIQN
The flnarn•Ial data and other Information contained herein have been obtained from the City's records,
audited financial statements and other Sources whkh~are believed 'to hoe reliable. There Is ho,guarantee
that2my ok the assumptions or:eetlmataS,contalned herbin;wilhbe,reaUsed. All of the surrohories>of,.the
atatutes,,documents and resolutions dontalned In this Official Statement are made subject to aWoUthe
provisions of such Statutes, documents and resolutions. These summariev do not purport to be complete
statements of such provisions and reference Is made to such documents for further informationa Reference
Is made to original documents In all respects.
FINANCIAL ADV?SOR
First Southwest Company is employed as Pinancial Advisor to the City In connection with the Issuance of
the Certificates. The Financial Advisor's fee for services rendered with respect to the sate of the
Certificates Is contingent upon the issuance and d-livery of the Certificates. First Southwest Company
may submit a bid for the Certificates, either Independently or as a member of a syndicate organized to
submit a bid for the Certificates.
First Southwest Company, lit Its capacity as Financial Advisor, has not verified and does not assume any
responsibility for the Informations covenants And representations contained in any of the bond
documentatlon wl respect to the fedefal income tax status of the Ctertificates.
CERTIFICATION OF THE, OFFICIAL' STATEMENT
At the ,time ad, payrhent for and delivery of the Initial : Cettiflcate,, the Purchaser will be furnished, A
ct,rtificate, executed byproper dfkers, acting bt theeir,official capacity, to the effect that to ttte bast of
their imwletlge and beifeft (a) tt>!a Joscriptidns and Statements of or pertaining to the City Contained in iti
Official Statement, and any addenda, supplement or amendment thereto, on the date of Such Official
Statement, on the date of sale of the Initial Certificate and the acceptance of the best bid therefor, and on
the date of the delIveYy; ***'and at* b 1A W-correct ldisli rhat*Mi rosliad* (b) 106gfar4s'the City and
Its affairs, Including its financial affairs, are concerned, Such Official Statement did not and does not
contain an untrue statement bf a material fact a• onnlt -td state a' material fact required to be stated
ttareeM or, neeoseaty to mike the stWmrsents twain; M the Ilght of fits cWeimstances,under ~which -thery
22
were mule, not misleading (c) Insofar at the descriptions a+d statsmm% including financial data, of or
pertaining to entities, other than the City, wd their activities contained in such official Statement are
concerned, such statements and data have been obtained from sources which the City believes to be
r,etlable and that the City has no reason to believe that they are untriie In any material respect; and (d)
there has been no material adverse change in the financial condition of the City since the date of the lest
audited financial statements of the City.
The Ordinance authorizing the Issuance of the Initial Certificate and the Certificates will also approve the
form and content of this Official Statement, and any addenda, supplement or amendment thereto, and
authorize Its further use In the reofferln; of the Certificates by the Purchaser.
RAY STEPHENS
Mayor
ATTEST
CHARLOTTE ALLEN
City Secretary
I
1
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APPENDIX A
The Information contained In this Appendix has been reproduced (roil, the
City of Denton, Texas Comprehensive Annual Financial Report for the
Fiscal Year Ended September 30,, 1983. The Information presented repre-
sents only a part of such Report and does not purport to be a complete
statement of the City's flnancl.d condition, Reference Is made to the
complete Annual Financial Report for further Information.
The City's auditors have not examined this Official Statement nor any of the
City's records and accounts simt the date of the report herein.
.4'
Iwo
OM of +A W"N. TEXAS MUNICIPAL BUILDING l 215 E. MOKINNE3Y ST / DENTON, TEXAS 18201
December 20, 1984 `
To the Honorable Mayor, Acting City Manager
and City Council,
City of bintoni
nie Comprehensive Annual Financial Report of the City of Denton,'for
the fiscal year ended September 30, 19859 is submitted herewith. This report
was, prepared by the City's Finance Department. Responsibility for both the
aecur•ey of the presented Oats and the completeness and fairness of the
presentation, including all disclosures, rests with the City. We believe the
data, as;presented, is.accurate,in all material aspects, that it is,presented
,in a manner designed to,fairly set forth the financial position and results of
operations of the City as measured by the financial activity.. of,~ts various
funds{ and that all dis ciosures necessary to enable the treader to gain the
maximum understanding of the pity's financial affairs have, been. included.
Accounting System and Budgetary Control,
In developing aqd agslusting the City's accounting system,
consideration is given to the adequacy of internal accounting controls.
Internal accounting controls are designed to provide reasonable, but no,.
abac;+.jta, assurance regardinge (l,) the, safeguarding, pf, assets a, #inst loss
from unauthoriz"e4 use or disposition: and (2) t"te ~el.lability q, fish cial;
racords for preparing financial statements and maintaining accountability for
assets. The, concept of reasonable assurance rAcogn tea that: (l the cost of a
Cont,rol,should ;pgt,exceed the,benefits..likely ;o be;Ferived; and (2) the,,
evaluation of cost;,and .bepefits, ards pvt aatee and jud2 nts by
A;L;! 44aent,
All internal control evaluations occur within the above framework.
We believe t.hot the City's in,terdal accounting controls adequately safeguard
assets and provide reasonable aijourance of proper recording of financial
transacti,)ns,.; ;
Budgetary control is maintained at the activity level by the
encumbra:..;e of estimated-purchase amounts prior to the re)ease of purchase
orders to ,vendors. ,Purchase orders which result in an overrun of activity
balances are not released until additional appropriations are made available.
Open encumbrances are °dpo-tad as reservations of fund balance at September 30,
1485.
817 6004! DIFW METRO 43$-M
The Reporting Entity and Its Services
This report includes all of the funds and account groups of thy.
Ci#t includes all act:'vities controlled by or dependent an the City.'#u, y -jJ
The City 'pro;rtde'e the 'full r i4 `'o'!' s t1'ioipal' ssr*40",'COA iji'T
by statute or charter. This includes public safety (police and firer),
hi hways and streets, electric, water and sewer utilities, Aanitation, parks
an~ reereatioh''public improvements, planning and coning, and general
administrative services.
General Governmental Operations
(Govehlib6}:tal INmd Type
General governmental revenues totaled $21,450,171 in
985,,an
increase of 26.0% over 1484. Property taxes produced 31:7%"off ener4f
revenues compared to 37.5% last year. The amount of revenues from various
sources and the increase over last year are shown the following tahulations:
` i~drei4nt' ' , (liedrea4e)
ftevenu 'Stiutce Ar:bdnt a 10t 1 fibm' 1984
Taxes a
`"311'845f499` 3 ~`.21 '31',4991558
Licenses and `permtits' 3369'661 i 7 51,936
Utility'fretil,hise fees 494~1712 3 63491
3ntergovethN,eetei 1,733,$'58 88 " 98,751
Fees for se'r'vit s 191689673" 5.5 '6'749461
Fines and forfeitures 7159044 3.5 98,218
Interest revenue 7819815 3.6 20,258
Miscellaneous'` A4;364;450' 19,4 1,0$8,703
Total' )71;45 ;171"iWo'h"! $4,425,412
r~ , _ re,. 'r~ - 'y~llsis3aSr~~li' lmft4c 'Ytts6'l~~'~,6~
.14sessed''val"tf6iiA' of 31 194; 036; 258 'relirestnt6d`b4i'incr 9ge S'''
2 3xV'Bt ` thh prtcedit►g'' y6AY .
Curk'ent' 'tax tollidtibns Watt 973A of' th6 tax levy`; a:i''increitItt"•of
to3%thercurre'nt kgat. The''rAI iI6 of totbl'r.'61`lec)Aoi'is '(6ilriekit"ahd''delinquent)
1*0
w6s' 991 M7 A ` 0`t 48x~ indt'e l lei 'from' 2'~ls t 'yea' , ,
Allocations of property tax levy by purpose for 1;185 and the preci1-"1h3'%'tw6`
fiscal years are as follows (amounts per 3100/assessed value):
,(!r i jr° , 1,:: •1_ r,. "1711 ;rpr, °.1;T1 fl,
Purbe1985 1984 1`9$1
3 t 1
General Fund $.3866 $.3499 3.3373''=''
Debt Service Fund .2Q34 .2101 .1725
T6tal tax 3:5900` ;i `StiO0` .5104
I;s~ , r,, _ , 1 sd
, _ t'., - t , i PR 1. ~ ` 1 • , 1F ,`1': 1 f ~-S :7 f S, .1: '
_2_
General governmental e*pend'itakes totaled $26,742,679, an increase
of 24.2% over, 19840 Increases in levels of expenditures for major functions
of the City'orer the precedia8'•year,ate shown Aa the fellewift tabulitionat
1 Iacreas•
,,5. Pet'ctnt' (DecreaW
Function hMu.:r df Total !froze 19x3
General government $ 6,196,728 23.2% $1,400,596
Public safety 4,363,330 23.8 8319448
Public works 3,140.672 11.7 340,346
Parks 4tid recreation 1, 7191742 6,4 221,516
Capital outlay 6;1136-,679 25+6 2;815,007:
Debt' oc;rvice 1i485 X 528 9.3, ,
Total $26,7429679 100.0% $5,222,038
RlRRliRiaR! R!i!R R!lRIClRlRR
The unreserved-undesignated fund balance in the General Fund
decreased to $U,1'22,;131,, In additiciA.,the unreserved+-deiignatat fund balance
retrained; sty $5181,649:,
The fund! balance iii th'tf . ' Debt'Service Fund ihcreased''fros, $9fi,265 to
$605'1541, -
Debt Administration
The rctio of general obligation debt to assessed valuation and the
amount of general obligation debt per capita are useful indicators of the
City Is 'debt posd+:ibo tti MkOiai'pkk manaterrent;"oitieen's mind 'i'Mdestorii. This
data' fdr ;this:city it}'the ettid 'of 'the 1985 1saa1' year -was as 1 oll,64s t
Ratio of Debt to
Assessed Value (100% Debt Per
Amount of Present Marked Capita
General Obligat'ion' Debt $24,280,000 2.051 $395
The Cityta bond ratings for general obligation-bonds 'at. September 30,
1985, were A-1 by Moody's Investors' Service' ond fRL4. iiy' Standard 1 'Poor''b
Corporation.
-3-
Cash tr
Cad te"orsrV y idler during.. the;,yeac , wu invested in certif icatoo
of deposit ranging from 30 to 365 days to maturity. The average yield on
matusing investments during the year was 8.34x, and the amount of interest
earned was 13,196,760, This was $1,563,439 more than interest on temporary
investments:in fiscal year 19$44
Capital Projects Fund
Proceeds of general obligation bond issues are, accounted for in,
Capital Projects F M& until imprpvement projects are completed. Coerploted
projects and uncompleted construction in progress at yearend are~cap#talised
in.,th*:General fixed Assets Account Group. Duxing 1985, project expenditures
totaled $5,817,957.
General Fixed Assets
They genorsl fixed assets of :the City, are thnss,fixed Assets used. in,
the performance of general governmental functions and exclude ,the fixed assets
of Enterprise and Internal Service Funds. As of September 30, 1985, the
general; fixed assets of the City sawunted;,toi $49x,843,525, ,This Amoumt
represents the original cost of the assets and is considerably less than,tho4r
present value. Depreciation of general fixed assets is not recognized in the
City's accounting system.
Fleotric, Water and, Sewer Syste;n
The, City's electric, ,watex, and, sewer, utility, operations, resulted „in
income more them sufficient, to; s►eet,.debt,service_rtquir*M atsu > ;Co"mrative
data fur the past two years are presented in the following tabulations:
1985 1984
Aerating Revenues $670541,640 #559639,035
10perating Income 12086,1953, 42084255
Income Available for Debt Service 150437,051 15,873,402
Annual Debt Service; „ 5,635,606 4,396,712
CP.verage.(Ino.o+pP Aveiaable:for
Debt Service Divided by Average
Annual Debt Service) 2,74 3161
-4-
~s
C
tots ild, ORtstending utility xystew. rayomw bonds aa; of Gaptoo6eie; 30, 1985,
02*4454ft- , Th* Soai.trati,oa Fund has &G-#AdiFfi L--Rl.#WjO00 of ib-Wide
outstepdd,Rt► ,The for: obese rtwuue. bonds as of,10144nber, 30*.;
13 0,5 p wrwp A-1 by lloody',3 Xjrwoators' : t3aervioa; and A+ by, Standea, MTA No
, r,' a
Corporation.
Independent, ~Audit-r
The City Charter requires as annual: oud$t of the books of account,
financial records. and: ,transactiobs:.of all: admi,gistrativel departments qf? the!
City by inltapmsW*nt aceountontst:selected by the City:.tlouncil.,--This,require-
sent has boon complied with and the auditors' report has been included dh,'thia
report.
Cer_tificate~ of, Conformance
The Gover:aeent Finance Officers Association of the Unitedi States and
Canada (GFOA) awarded a Certificate of Conformance in Financial Raoorting to
the,-City of Denton, TeI for its, comprohenaive atmual`11inancial reeport for
the fiacaa, Y4ar: ended :Septss~ber 30,E 1484.
rn order to be awarded a Certificate of Conformance, a governn"ntal
unit must publish an easily raadable and efficiently organized comprehtisive
anottal financial report whose contents 'aonforta to program standards. Such
reports must satisfy both generally accepted accounting principles and
applicable legal requirements,, J
A Certificate of Oonformanee;is valid for a period. of one,year
only., I We believe our current report, continues-Lo;,0onforsc to Certif iaata of-
Conformance Program requirements, and we are submitting it to GFOA to
determine its eligibility for another certificate. 1.1 : rwo,
1
Future Significant Actip'itiesI.,r
Significant activities impacting the State, Denton County, and the
City of Denton, relate primarily to growth and the attendant infa;tstttcture',;;
that will be required to deal with projected growth level...
The U.S. Bureau of the Census indicated the State of Texas in the
decade of 1970 to 1980 increased by 27%. Between 1980 and mid-1984, the State
has grown an additional 12.4% while the United States has increased its
population by 4.2%. Foi,-ecssts are for the state to :eep outpacing the growth
of the notion.
-5-
{
The- Cou tty► of Deatdn,44 pm1lacted to troll #vy 89,41- duAdt'l the years
19A3-X2990:' ;:Tbt ThaevDspoWtomt of+ihtat lkeoburiast i' fatthee(i maths j jult,
growth scar 6ootinue' to 96 by t ys!tt+ 90a0t : s D~Mptbis' Co4uttiC `i'j,'a part at'.tMl
Dalla's-Hatropolritat{8tati,ittcahlArea which' bdicstte`s 'a'9res h-,-bP'Y5*'2V1byA4
year 2000
The City of Denton is planning for our population to be in excess of
100.000 by the year 2000. Our OWceitsus indicated a population of 48,063;
our 1985 estimated population is 600000. The City ha,i issued Revenue and
General ~Ob ligation! bonds to prepai+e lfor and improve servito to' 1t4{ citizens.
The' City io r hatmAtly sevisin*i plans' to deal with oltiriert neelds, stud 'to'
provide v h [t=ry emrirorment : for near 'buafaesses and 'other oo*meresiall
aativit;insDuring the past year, the City Council has initiated a formal
strategic planning process to address these planning issues. Overall, the
City is respofading to the growth 'pAtterns of the area in a traditional manner
to provide quality service and anticipate needs to respond to our changing
environmmt,~ „t ; I' l
In At"t-+ 19851,11the-01'ty+ftnager: left tha Oity"s employment 646twr
private enterprise. In January 1986, ltttia' City Council
who is expected to begin as City Manager for the City in or be'are March 1986.
Ackhowledge.monts
'the preparation of this report on a timely basis could not, be,
accomplished without the efficient and dedicated services of the entire staff
of the Finance Departrosnt. We 'would like to expross"our'appreciation to all
meid#ers of this. Dr,partment,who assisted and, oontributed to itsl-prieoara lon.! l o
:gilt:^_It.~~ I i`I :'t
Aospeetfully submitted,
t L, I.J.z(i , i . 1. r :j } 11 ,i
I
John ~F! ,,HcGrane,,;l
Direct(or of Finance n'tl,rl~'I!, a „rr.t.,l
I
h' t'I..-! ,1 r +c, h y ! i n(,. ~r{: -.r [ ? r ) E'f,t. t 1) , 1
I
-6-
ORGAWZATION CHART
QVY OF DENTON
SEPTEMBER I M
coo=
1.
r,r
.,.ed~►; an art LA:!
i1Mt
~~T+, , ~ ~w MC11f►Allt
'I
9 Hl
S i r
v"um
re AwI~E
L / , , r 1 :rya i[ ; s
(1
r~.
pim"
r I~ r ' r~11 r 'N A.
71
us"faft
EUMMt~t
t -y x56Y
WAw" E u
MIO/YO't10M t ;
. ♦ v POW
F ~ . ~ ' ~AMIATipI . ~
ttt
J
Li YAtA t'~ j
MIMIft10M
_
oft"" 1M
LIAA"W
r AIMM►
{
Fw=Tl-
y
rti i ~'te
I R
Conformance
in Financial
Feet
g
I
I i
Pr'rxhted to
City of
Denton, Texos
'
For its Comprehensive Annol
Financial R4pgri
for the Fiscal 'Ye'ar; Ended
September 30, 1984
A Certificate of Conformance in Financial Reporting is
presented by the Government Finance Offii:ars Association
of t e United! 5tatit and Canodi to r~ovonmental unity
ar a tir whoiw comprehensive,
+ nnual fin C.41 s (Ct's) ~ ""m udg*4 to substantially
I s ~ i cpnf r t4,prggtarn junduds
k
.t♦~~~ President
q I { ~
• ~ E AL' ~ i ~f;
i `
ER if utivo Director
I i<<~ I I I I
h
ARTHUR ANDERIJEN & CO.
DALLAS, TEXAS
To the Honorable Mayor,
City Council and Acting City Manager,
City. of Denton, ToxAs .
We have examined the combined financial statements of the City of
Degtnn, ,Texaq, so of and *or the„ytar or4'd 6eptambey, 30, 1985, as listed in
the Table of Contents.' Our examination was made in accordance with generally
accepted auditing itaodArds afid ` k66rdihXlyi included such tests of the
accounting records and such other auditing procedures as we considered,
necessary in the circumstances.
In our, opinion, the combined financial statements referred to above
present fairly the financial position of each of the fund types and account
groups-of the City of Denton, Texas, as of Saptember 30, 1985, and the results
of their operations, changes in iheir fund balances/retained earnings, and for
the proprietary and nonsxpendable trust funds, the changes in their, financier
position for the year then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the preceding
ye4r.
Our examination was evade for the purpose of forming an opinion on
the combined financial statements. The combining and individual fund and
supplemental financial information listed in the Table of Contents are.
presented for purposes of additional analysis and are not a required part of.,
-
the infora~at#ondhas bsen financial si.bjec.tedn to, the tt as City of Denton, Texas. Sort', -
uditizig procedures applied in out,
examination of the combined financial statements and, in our opinion, is
fairly stated in all material respects in relation to the combined financial
statements taken as a whole.
'
The information included in toe statistical section of this report
has been summarized i:ow the City's records and was not subjected to the audit
procedures that were applied in the examination of the combined financial
statements. Ar.cordingly, we express no opinion on such information.
` e 6 .
Alas, Texas,
December lp, 1985.
..9_
CITY OF DSNTOR, TtXAS
COMBIRSD BALANCE SNEET - ALL FUND TYPES AND ACCOUNT OROUpS
FOR TRS FISCAL YEAR ENDED 12MMSCR 30, 1985
ti„Cite
Oovernsentel Fund --ojf' P6 4ietary Fund Types
Spec~s{1 i a i
A886te ' Debt Ca
aenb~i~jt Redo ' ' Pi ( 6pseLal Internal
dGr rrMc6 ?to ♦cii' AYatatwef~t`'~'I~ter ►t`"' Service
1,
Cash and invaetsent! , „ ~
02AW.170 $1,891901i• 0961431 III
,9~f},Q~9 ;39ls4 +t;r,~t,2~r~1$r338,:,f 26,913
Receivables! (net of oilo~nces
for uneallectiblesf- r 7!'.
Taxes 651,279 - - w W:1I r,i
Accounts _
10,917,055 -
Uobilled utility seyviel „ - 3,798,674
Special assessment, - " 2y6 944 u' -
Accrued intatoit 810 4821852' ~'81b 82~,698'~F
Other r 143032 + r . . ,214>j a 2,18
Eros atMr o. h 1,9py - 297 834 411 7,
l~ h . lA ~l 2,73Q~495, 1,409,260
Due fr0,e other Sovardma'ks - 58 162 - " ~
Merchandise in4en'toryat"ldlier
of cost or market,
Prepaid axe net$ pad deposits, y 1y942,670 1,011,554
Restricted assets (Note 3)~y5.5
8,48S,b19
Pixed assets; net, where
applicable, of sccuwlatod
deprscistioq;,ima,tp;;dr 72, 348, 71 2,808,341
1 1
Amount availableiia oibt ,ti
Service Fund f •1! t,.. f).
Amount to be provided -for''
retirement;ot Ions
~terw.,
liabilities
Total Ae'sits c. 882,345r 1348',?64t V04,265 ' 13♦,8~48,84! 141-x,195 6114,7051"7lv$5,318,il2
f .~iJ i'.,rr '!al - 'u~M~«~If2fN!!}~Rp!.,, lRrPR~~~, ;~~n Sri°r~~:J~~7~~; 111!?~er!1'~1Rll!!', r.,~suur~~•
The acc00panying notes to financial statemata are an integral part of this balance sheet,
r '1 t, f' 11 is l"f - ~ i'.r;l. ' _.1 i .,f~•
i
~4 ! r?
T'.~ i r..rx s L1b^
p..
Fiduciary Totals
Fred,TFM Account Croups ; (lLaaniraairr`only)
----------M-- - Nww. ww Nw ww/,
Trust General Central
and Fixed. Long-TarwBrpte,aber, 70, %ptas*r 30,
aMy, ,Assets Liabilitiat S;
i 430,039 - - / 40,405,756 11,801,052
- 661,279 534,2ill,
_ 10,917,055 9,427,276 ,•.i
3,798,674 3,612,366
276,944 282,363 n
1,824, _ SR8,950 533,6.8 ,
154 - - 1,580,884 2,188,750
2,L48,676 - - 8,902,558 2,232,537
158,362
2,314,324 2,357,076
4,682 - - 43,137 23,283
- - 8,285,819 7,195,740
49,618,384 - 124,774,898 108,991,526
f'; A
- 605,541 605,541 910265
« - 25,541,982 25,$41,982 17,342,526
$2,585,375 $49,618,384 $26,M,523 $228,826,163 5166,603,8'!4
aaarrarr,,•r aarrorrru rrrraarrarr rurrrurrr.a uruurr.,rr
,.,10
al!i
-11- l
1
f4 p.~
TV, Of Morm. MAI
OOMIND 4ALO M 4L 11 - ALL NO TIM AM ACCOOM'1' OM M! (09M?IMOtD)
Is In nos Ma ON ffamc 30, AM
r r.'Or 1 Fowl Typos„ - PT%ifriot ary rhlbd ty"s
wrr..rwrr«r. ----r----
$}asiat' W*Ir r -rOopitai 4pedial•,+,' Internal
L 4ILITtfl AID Stu 14WITT Gssanl e414t4, WoM c r tiao service
Liabilitiesf 4 1,
Deficit position in pooled cash / 64,547 / tZ,llB 1 - / N0,43S { - 1 122,4)6 11,393,543
Acoouats payable and accrued
asposase 570,991`, f'7,Z10 M,724 133 - 2,1460 ►44 14,349
Rotairap payable 12503" - Z8, 280 -
Liability for accrued vacation
and aio4 lesva (Mote 1) - - ^s r 241,469 10,335
Deposits 90,45T'•''' 21,425 - 314~072
Mots M#ble f t - 550,000 -
Payable frss restricted assets "'•f
(Mote I)-
Accrued istoreet
' Revere bonds payable, - - -
eurrsat 20049;000
Due to other toads 1,104,277 124,043 350,943 - 6,396,741 4J ,.'a1
*starred to Does 2160005
Losses payable (Mete 4) 1480203 958,478
General obliastion bonds
payable (Mote 3) -
Revenue bonds payable (dote 3) - - r « - 41,643,450
- .....«.r rr-....»--
Total Liabilities 20393,671 193,461 44,724 6490765 1190430 54,1$6,052 2,174,597
w---r-r►,-' , yMnr'.'!f'rr -YIWY~'r'1't 5w..wwYrryiM' . ~i►--••rrrr rr«r.r-wwr rrr..r.rr-
The sacadvasyia4 notes co tisaacial statewats are an iate4ral part of this behead shat,
v F ~~y,
17F. 7w,- r yr r ;.'G` 'kT` 7Y. x °~°Ig' 4t v +JI
a h ,"Y`'a ~ 11717
Y
►iluaier~ Totals
hM Account Ororpa ~111raM~w Oetr)
-+.r+.M+ra. N.w-r....r~rw..«-.«.-.w +...rr.rwr-w.r.waar+..arrr .
Trust General asearel
mw FiMW Loej-Terry fepteeMr 30, WptsiMr 306
Aeu►cy MNte laeb{1{t{6r t!!3 19/4 , ; ' '
ft, 757, /68 ~ - 1 - / 3,5//,44) ~ 1,355,723 I"''
403,N! 'i _ - 3,231,M O 6,271,44/-
- - 157,!69 120,257 r
- - 1,673,8)4 1,963,6)/ 1,/90,371 -+429,34/ 313,739
- $30,000 3301000
- - - 1`, 317;59) 657,4!5 ,°•1- 1
2,045,000 t, 733,000 , ,
21,022 2,2320537 • r - 6450635 S61,9l4 Y,l!1
193,649 1,3!2,730 $44;92/
- - 24,260,000 2412/0,000 15,552,750
41;643;450 230691,135
-..rr.-r-.r -.rr.~rrrr r.rerr+wr u.r ra•.rrrr► rrArYWrr+rrr
2,1/2,339 - 26,141,523 90,146,152 55,715,764
.j
i t 'ct
CITY QT pLlliQM. T1WR
COMMIM00 MEANS'S 0007 - ALL FUND lYT00 AND ACCONT OMM (CONTIM17iO)
/,~0 TIIO lIOCAt. YEAR RIRltO.0a~T016MiR S0. INS
V, "4
(v'•rr> Aaver~atlal Fund Types, i-,.: A M'<fpt!Wt&",'lund Typal
-rrwr-rrr-«-rrrr--rrwr«+.
;«„1NMyit1 rt,v:N'r. Capital Spec iol; , Internal
LIASILITILO 40 FUND SQUITY Coaersl :IVAUV "r. viaq_ Frokota, aaa tnt.rRr3s~~ Service
rued 9quity;
Contributed capital-
From other maicipalities or
gave rnmentat unit. 14,90,00Z 02,929,770
In aid of construction ~Ie,1 - - 13,509,794 -
Inveatswat in gaeerel filed assats - r - - - -
Rataiaad earnings-
Reserved for bond retirement
(Mote 3) -r(0,0 - OUl),We 4,923,222 -
Vorsserved - - - - 36,613,601 14,045
Tuad balancee-
Raservad for debt service -r a, - 905,+541 - - - -
Reserved for encumbrances 6470694 390673 - 10316,463 - -
Reserved for capital projwg 111844,421 - - -
Designated for subssquont Ove,re <~~,rra
years, espeoditures 519060, Pwt314,940
Undssilasted 1,122,131 - - - (242,633) - -
"
Total Fund Equity (Deficit) 2,208j,614 s 654,813 ti;605.9{li,' 13,156,$64 (242,635) 70,149,699 2,943,815
Total Liabilities
and Fund 0quity 14,0921349 134$,264 1694,265 113,848,649 14770195 11240705,751 15,318,412
■rssrrrrsr srssrrrrr r"rr s..ssrr■.. srs*rsrr rssrrwssrrr wrrw.sr.~.:■
The aucogaayieg notes to fiseneial statemeats are an integral part of this balance sbeet.
-I4-
~r k r° da 'RS mar 7,71 a~.
,
;w •r..ti .)4'011 .1 ';I: NR, I,~r! t171A6T X1'C?N lr! 'J~, 7' ii~a_
t f i~
Fiduciary Totalba,5re f.;
FurA Type Aecount Groups (Nnwraadur`,OctV)
-------r-------r'rw_~ff------
Trust GOMTat 0*0eral ~t
andi.7LX*4- . LonjttT9e* 0epteeber 30, N►teeber 30,
Aso-LC Aseetvu-L Liebilitioe y,r,.,•.,?
, ,nits^aiM
i'.{ i, !:"d _ , ,1, 'hf,C i4'L,Dt,~ t•<1~ ;4,'iE .,n ryv„!' H;;
. 'ti. 171432032 $-111432,672
- - 13,509,794 9,1021810
490616,364 - 49,610,364 41,506,510 e:1•;r_1
C913022 j4" 0 SOL
36f027;646 '411141C919
603,541 •91,265
6SOO4y130 "1ti612,634
11,842,421 2,076,526
• , H•f- ,P t f t.r•p ,.,PTO 17I)
633iS09. _...150,-112
1r202J532 .;011,874r125 ..Y--.....- . . -a .i
402,036 49,618,384 - 130,600,011 110,605,090
-•--+i,1~-!i i..-.. ;.f '.f.*Mwj aY.~AMM-„~1' -.-n4M-a~¢.- GyrN~yNA ~•,W-- r i'.. ~~t?;`
02,505,37S $49,610,304,426,147,521 0228,826,163 $166,603,054 a(m;i narA, :`t
■arrrurrr ■rrr Mfrrrrr rrrrfrrrrrr rrrrrrrrrrrr p,p,~afrrrr■ p-,,¢ry. in F;l
rill, ,i,t is tt'ILIr 51'-ih11for 7t 2'. re i•a,ir7
0
Ali '10vl1`'i ,Ori+[1 (4101
t~!Jr,`'nS.l)! ,',{,Y,,..+ ff^.,t,f.t.'r'} GI';,t,f•~,d Ia~r!~fJ a»~'f4d2
(a,+ F.:` r'ff ,Q :1 L,N:(~ !rd-':d .fl. ,'.,`.j .A~ry ~T:}fffn
i1 r° •.Jrn f 11 ,'[If) y{ i.
. , 't
yp f;ZI, ,t:, ,,rptl (;r1, 11 S5d 11H1, 1' t i)f W,1 •;5.!i: vii('?
•1S-
.1,:7rr,y;r,"a a4;It 1•s 1'.A e" 1r,'a.;'+1If i ^,M nr,,. vr7rYWao)t..tp ~rs„nnnil c! ~_.,,nrt ~urvsgr;rp
•
if
s z
CITT Qr 20LI, MI
CONSINRO STATIMM OF ARrRNViSo RRr WITUKE AND CNA~AGLS IN rM EALANCIS -
ALL QM11 MIMI, no VMS An WRIDiAOLE TRUST ?twe
P4L~n~AL TLAA~N~D ~rrofREA so !!OS
Governmental rum Type
special Debt Capital special
Gemerd two Eat o* Pr_ Assessment
ALVtiNURSf
!axes (Note 1) 0 91592,436 1 - is,253,063 _
Lloensee and permits 3560661 .
Utility franchise feu 404,171 ,
Pines and forfeiture 7151044
Foss for services 098,441 270,232 +
Interest revenue 277,657 . 52,361 4140014 )7,715
Intergovernmental 247,t30 t,022y1$9 ."0,, 463`0#!.' -
Contric-%tions _ -
Itiscellen.Des 154,414 117,674 4,066,943 5,419
Total Revenues 12,725pVAi 1,410,795 2,3050432 4,964,856 43,134
&XnKDITUAMS1
Current-
General government 6,04'10943 1400926 4 159
Public safety '62'41603 701,121 ' .
public works '31fd7,692 3319)f - 69 103 -
Parke and recreation l,'f00,819 210,923 -
Other
Capital outlav
ice- 6d0~929 355;190 - 5,611,957 2,601
Debt service-
Principal retirement - - 1,4170385
Interest and fiscal charges - - 1,002,143 - 66,000
.jiTi/.y`-•-- -4l,Jv4+rr.. -
Total Rmpsoditures 1705260'986 135,%63 2,419,528 5,691,999 6E,b)3 '
RRCtEE OF
RRVRNUtS OVRA (UNbtR) rs,
UPINDITURIS (4,101,032) 515,232 (114,0!6) (927,143) (25,449)
Mal Pt"WINC sOUWZI (Vats): -'w- r
Proceeds of general obligation horde + tp,000,000 a
Capital leases
!12`!!5
Operating transfers in S,i831134 - 625,372 $12,560
Operating tranefers out (022,0)9) (533,821) - (250,000) -
Total Other Financing
Sources (Uses) 4,473,210 (533,821) 620,372 1002621300 -
&=IS Oy ARUMS Alai OTUR OOVACA$
OvM (VIOLA) RRPRND IMS AND
OTUR U8R1 (3270022) 410411 5140276 9,335,437 (25,469)
"M SALA=$ (OLFICIT) - October 1 2,616,4!6 113,402 91,263 3,023,447 (217,166)
1Vltlu SA6ANCtS (MFICIT) - September 30 1 2,2080614 1 1540813 1 603,541 /13,158,004 =(242,635)
rrrnrrrrrrr wrprrrr rwrrrwrrrr rsrrarw wrrwrr
The accompanying notes to financial statements are an integral part of this stateseat.
-16-
y
1~ 7- (y.-,r'_g-.`r;..s.-{[+. .c- vs~c a Tie"` kr K Fr=. ac~ 4.,,. -a rf z t f=.+1- .a sue'=;,p„
w
?Yll~
Tesala
(~Mwefla4w.0a1y)
TO 4iOrl
r, TM,. tear led"
X9 N~aa9raY 30, 8apcaalMc 30, ,
1 » - 1t1,34l,49A 8t0,403~911 ,y356,461 .3030725
434,171 418,660
715,044 616,826
1,148,73 444,212
210716 161,!33 126,334 . ,
1,7311133 114,375
1,247,343 1,}J~~7~343 1,2430137
2,1-)33 4,364.535 2,905,344
....ww.7f". ---frf.:~..«. wrv......
14
,2)1,146 22,111,311 1t,4~4,731
6,19E,720 4o020760
6,383x,}~ ~e1 1,80,
- 3,140,672 2,,326
1,719A742 1,494,226
1,0y2,425 i10521425 1,039,239
6436,679 4,5531281
1,418',315 1,2640750
1r048~1~7 ,,1,L~,100, La,^ ~ ~
1,052,415 27,791-,104 22,$50,$72
218o72i (50073,787) (416030021)
- k0 000 000 - x x.
6;1244,:g
,32, Si351,164r
« (1,606,660) (1,000,N5) r, .,r
N. 14,830,341 4,351,90
„ _ v•x,,
M__.«... Nr--
~l,il~~) i', rl y IY 5,7
. .1, r1'7 x. ,r_1, ~ •'r1-. Ci [.4'd J: "I ca,.-'Q S'e.? l'i'97,~
- °s
2(x,721 90 ,7~~y1 t~32,452) r,,•r,; v~{ „1-
1W,11S 6,61i,5s9 6,864,o11
1 ,740,.tk~ 6,i
rw„r/rr~rs „b erawrrrr~
. rlt.^h `A la r. irf t ;P 9. ~ x.'r il'r x'fi +xF -}',p 4r..xli' Spt u.n i;- _ `v+t Y If rip ,t; x'rrf7
X17- ii
f'Yi
Cm w , Umm,
COOIBMD /TATFJRNT Ol 6EUMIS, BEMIMITURE6 Alp CM MC$ IN VIM
MIAMI - WSWI AND ACTUAL - 0MUL, 8W-UL RBA, MST KRFIOE AND
CAFITAL ►R0,7ECTm Im TTFE6 (NOTE 10)
MR THE Its0/ mm m" armwa 30. 1963 _
sWU Rivssale (Federal
Omaeral Fund Reveme S§ ria$ nib Rscrastteh'?Owl)
41-Y,iiia-
Faliaace- Va5rAiL ase-:
i'avorable'"t ~r!.i, i~~` n;`,pp)et r.' ~1
Ua1A*t Aetmat (Llafarorsbie) - Astir iU 1 2e)
REVENUSSs
Tangs 1 9,391,611 9,391,436 100,015 1` !I it,t1; _ - 5
Liceases and permits 3560400 3560661 261 " ' -
Vtility franchise fees 440,540 464,171 35,631
Fines sad forfeitures 692,460 7150044 22,564
Fees for serviess 947,354 698,441 (461913) 162,000 18~fw 361)09
Istergovernmsatal 240,010 247,130 (1,t60) sl'S ,121 41'j14 " 34;593
Interest revenue 100,000 277,65Y 177,651
Niscellaaeous 2420100 1140414 (87,666) r "1' 66010 66 60,
« ♦
Total ' 1 I rLY`N-- .L~1fYN' -aYYrd-r-
~1,}~1 9f7,6'~3... 236 712
Revenues 11 421------475 - 12--- 7 1
'723--9-54 - 296-479
E2mmiTORSS I _
Current-
GensTaI government 6,9391675 6,042,943 29617)2 - - -
Public safety 36!669060 6,264,603 (318,323)• -
Public -arks 302129668 300370692 175019b i;~1~'"~~ -
tarts and recreation 11423,560 105000819 (73,259) l dOO `101103(58;123)
other
Capital outlay $12,066 6600919 (148,663)Cid00~6;~16l
061676)
Debt service-
principal retirement - - -
Interest and fiscal charges
- - - -
rail«i- LLL.1Ji- ~
Total Upeaditures 17,456,269 170526,966 (10,717)1" `,WjdOO 1235;1'9` (74,9.99)_
- .
R1tCESS Oy REVINUR/ OVLR - "I - - -
(v=R) ZknwiTURSe (5,026,794) (4,01,032) 227,762 540,321 702,034 1610713
0=2 FINANCING IonaS (DBS)s
Capital losses - 1120915 112,915 - - -
Operating transfers is 5,0931133 30163,134 90,001
operating transfers out (6160615) (6220639) (204,224) (529,121) (#53,;11) (4,700)
Total Other Fissocieg
sources (Uses) 4,474,516 4,473,210 (1,30) (329,121) (533,121) " (4,100)
♦ -----r--- -r «-r««1.« »-»w+♦« n..».r. -w--.r-.-
Isms OF R1 n=$ AND OTIRR [+1. , ; i , n ! ,t C , tr b
sOUMCE6 OVER (WISR)
LZ;lEM9ITURE11 AM 0 UR USES (5540276) (327,622) 2250454 11,200 1611213 137,013
FM 114LAMS, October 1 20616,496 2,616,496 - 466450 461Mo, =rS
IM RALAMS, septaber 30 1 2,062,220 1 2,2N,614 1 225,454 /tI~,I 210,1 31;t 1,1 7I3"a
ma%O w ~~„MN~rMM NMNONII r..
The, aaeomFanpisg votes to financial atatemsate are es integral part of this statemet.
I
-lh - ;
"d.w-er.,, ir.;'N.e, rtsa~. •^s y'..__..'} 3,;: "t' yam` !a "r +;ri.~ :i2
v
• 7a,7, iY .S16TN gfi d,t .•T I7
.(S .7i;fs r lA 3P it IA1r, -.if^r l.tga, ~;n n
4i1~r4 G?~!t7 '?.I::~Ur xrti r~6f < i4<) $L!{l 41131%14(1P1 If A
r'i s M1.1~
, „ r Capital hojeata
(Qat+eral Projects Mad)
-t r Te "...rr ....rrrr-•r•-rr-.
Variatece- Yariaeae-
cs:; lw{ible pawraltla
at ~1 i1rtble , ;ar tw1 {YsLvoL~ible~
2,233,063 62,263,063 fl'•`.T?i 6 - u" ~~stR!K!
2SO,000 520369', nG1~1,631), e~, -
73
r.--..•
2,503,063 21,305,432 (197,63))" 75 73
rrr « ny{ ----•r-r rr r. -
:.yti ! Oki )Y; j~1(•,:
43 (43) 1,riq , I.;
It ~i IT ~'l
r,pi Igi ,.,,,,),)O
;061743 131,]30 1TS,41.3 • ~„u , rr,t•
1,417,363 [•1o417,385t•,.~~ PK(i` - ` t~vv)i 1 r
904,522 _1,002,143 (97,621) - -
- r -V--- ----`w.. r-`--_-` `
' " "?wu{t
2,321,907 -2,419,328 (97,623), S" V743 33t,373 1750370
n)
.1 .1 r., -..r-...- ---r?*!k~lS. { r f. I s ,
181,136 (1141096) (295,232) .(506,143) (331,298) 173044s
• ~ t:^,+f}1~ ?TY.r ,7nA~71•- -.«.r.~~3nrfa~R3'1-11Rf}~~~ ;n, ~ , .r; ;o'i
V{'. f.f 1 1,1.rIJ i j~dr7811 "1ltUAv•dl"! r,?Yj /l,q. :a ~i'.r[:(
r„If.l Y.! ~Hvf iL.5:7`;.11 I
628,372 .628,372 31,580 312,380 -
w
!i ~~,rtc~~t;d>li
-rr-......w ......r-..... r.r.w rrrr Mr-. wrr•q rr.
l,7(,? ,0),'i"; tS if I rrtr.:~mi T';N/,.;AR )ct7d'":p!i'IiflAa C;SHJt.'!i?u
- 638,312. . ~,.62A,3T2 r
514,580 312,380
...r2-r«--TiO`,yrrrf"-T:f:,1f!*-Ttts- IR7+19Q9i ;)H!",ih( r;itt;+,1,r,IYIfARA,Y cY"{?fA'tiN
. .:n• n..~...rt Nw1..M.\t [:fsll ..,..n«>.r1.,,,
181,136 614,276 331,1 0 5,831 1610262 1751"s
91,263 91,?6S - 90,668 90,558 -
"":,f~~3.t„Y? "7159-?8-1,*a-71t'►p?f97fi M`t47`1f'n+Yh~"11t!7t"'f~4'f ;n rt}'i n,l !5}Un 3r ,•,,eakynro l iu Nr(;
6 272,421 603,541 331,120 96,395 6211,840 6 :75,445
ar■rrwrnr rrrrr►rur ■rr>rrwrrrrr rrr.rrw,r rrrrrrrr rrrrrnwar It
l
- , 'tr r: ~r C 3 ,r;=~rj ..?'T"hj~.e e'er ~'S tp ~,n r f .-T` - -+r v d ♦ > >_~y.
V S1NfC1l. Too
OMM= SIA'lOBST Or RPM 1, Slr6Ml1 AND CO MOSS IN UTAIM[D IARNINIS •
ALL FlOrRISIAII rMMD TVM AND MOI AM 10901 FONDS
M TO nWAL UM NO t MMM Io. 1965
riducisry
lreprietery rood Types %Ad''rype
j lAtil4ul Neeespoodable
MUTING RZQJI Si
Blectric service /57,1111,776 - ~`..II - t
Voter service 4,4!3,240 -
SewT servito 4,113,934
Charles for services 11.960,627 106000121 -
Swaodry 360,456 - 6,377
.
Total Operating Revenues 69,S19,035` 1600,111 6,374
r. r--__-_r
MUTING &"Szs..
rwrehased power 31,079,318' ' `
Pool S~30S,7~2
Purchase of water 7030103 - -
Salaries seed rases 5,231,712 379,930 -
Materials and $applies 732,674 614226 -
Meistoeuae and repairs 1,166,261 33,!43 -
Depreciation 3010 ,515 9731$56 -
Miscellaneous 1,9140000 3330123 7,475
Total Oporatlel lxpeasts 7iO14,176 1,7140750 7,475
Operatino Ieccas (Wes) 12,574,159 (119,639)` r (1,103)
NOWERATINO. W910MA (R3?!Milt):
tatere6r io'aelN " 2313,221 _
intsrgoR expelw# and fiscal Charles (4,011,769) (45,245) r
Contrisu.Anr. ' L vehicles to motor Pool (102,639) -
- / S.y~iii{M-.~i' a r4~r.u rrr• r~rr r_-}.
Total Nonoperating lwee4as (911, el) (1,1010381) (630245) -
..r_r+rrrr.. rr rrr..r. r.r.r_~._
Incom (Loss) Sefore Operating. Transfers 10,772,711 (254,90!) (10103)
OPtIATINO TRUSTERS IN (OUT) (417500278) 41,152 -
1;' _ } I ; P~iir~r_«~ , LlN...rrr.'. f.. '.1♦i.r.rr.
Not iweeee (WOO 6,013,500 (213,052) (1,103)
IETAIMND i4IMIN01/FORD MLAMQL . October 1 35,723,325 221,0!7 1,103
RSTAINSO URNINOS/rulM► MLANCL - Sept4I 30 $41,736,123 _ 14,045,
_
w.r+.w. w.rww.r w.r■...
The aaaompe"iei sotas to fi:-aecial statemato are 'es ietelral part of this ststeI
. € Bf r8'3.OW ` ti' a r- : ^ °Y r• 3 -q.. xxg r .r' .4 z= ` x~r err t*s.~7.
Tetdlm
(mommadw Only)
w r~
Tar tndad'
,Slyer 30, 1985 84~t" 60. L.
$57,920,776 $4$,229,572
;1,493,240 , s, ,805
4,813,934. 4,142
3,380,748 3,111,911
386,82¢ 326,633
71,?95;32* m0767,083
38,079,376 27,F23,732
3003062 3,624,530
703,183, ,0146391
5,611,y1~ ,!99,264
790,900,': y3,1,407
1,206 1,777,104
4:16 ,674;:; 34174037
.
2,255,290, J.
1,106,416
58,8126131 46,092,321
11,383,'397 12,674.562
21393,227 913,247
(4 157,014), (1,403,846)
(102,839). -
(1,866,626)' (968.599)
10,31447718;, Uf.6840963
(4,711,426) (4,311,369)
3,794,345 ~,334,59A
3SoMs$23' 26,416,924
O1,750',0133,431,523
-21-
CIlY or.M ICBM,
COMBZNWD ETATMW OF 1ovt1 So UPS I AND CNANOti IM ICTAINRD NANKNOB
BOOOtT AM ACTUAL - ALL PWRItTARY r= TMI (MOTS SC)
IPM TNL FIR" TRAM "no UPTI n 30, 398S
Adjustnep
4a
to as Aeo6*ari sa A iwa "fiYe4afto
oudaat Basil oasis Mewl (Unfavorable)
OptRATINO UVtMgi
tleetric service 6660645,091 - ,343,0!1 IS7,92q;i(8,124,313)
Water service 5,500,453 - ,yO0,453 4,49' ,249(1,001,213)
fewer service 309600056 =,940,056 4,81'.934; 853,818
Charles for services 1,912,073 - 1,,91, ,07., l,9dO;6x3' 58,554
Sundry 357,;94 - 35.,094 36.0,+156 23,362
- -----r---~
Total operating Revenues 78,374,767 - 78,374,767 69,599,03$ (8,7850732)
-
Opt1AT140 ZIMSES:
purchased power 47,3881240 - 4#;398,Z4~ 3B,
pwl 3,626,730 - }r~T6,130 5,375,,712 (1,679,052)
Salaries and 0Tlj'y7¢ 9,306,664
Salaries an wags 1,1116076 076 7Qt~ 83. 405,893
d rages 6,412,393 6,,412,393 5,23It, 1180,611
Materials and supplies 8030654 " 1~lE0,~~,654 7t, 82,980
Maintenance and repairs 2,032,756 - r Y2,7% 1,8b~`, 166,495
Depreciation - 3,090,000 690,000 3, 18981'8 (99,816)
Miscellaneous 1,477,815 - A,`47~,615 1,911;pppp~~ (436,185)
Total Operating Expenses 62,834,664 3,690,000 63,944,664 $7,0141474 'A,929,788
• .
Operating Income (Loss) 15,520,103 (3,090,000) 12,4301103 120574;159 144,056
MOWMRATINO REYtNOt3 (E3pEN818)t ~V
Interest revenue 47,000 - " "0'4'!,000 213011 21 1 1'2,346,121
Interest expense and fisesl charges (31853,956) - (3,853,956) (41091',?69)" (2:,1,813)
Contributions of vehicles to motor pool (105,000) - 005,000) (102,839) 2,161
r ..r r i Y-rrr--r
Total Nonoperstinl Reveow s
(Expense*) (3,911,956) - "`'('3';611',956) (1,80~;38'~)`''''2,110,515
Income (Loss) Before operating ,
Transfers 11,608,141 (3,090,009); y18347 10,772ti77~12,254,631
l:
Opt1ATIN0 T'RAMSTRIS IN (OUT) (7,849,278) 31090,000 (4175,40276) (4,75,9,,278)
-
-------r-- -------r-r .:--•r-----
Net Income (Loss) 3,758,869 - 2;,69 6,013+3~ 254,01
UTAINtD NANNING$ - October 1 35,723,323 - "°'3y';72~; 23 35,72];323'"
. rw r-rrrr...-rw rr---_----.
RtTAINRD tARNIN08 WFICIT) - September 30 63904820192 6 839,482,192 6416736,823 6 2,254,631 !
....,►s.srrr I,~.;ogMY ■susMU.~1~ss s.rsssrss~r *.s~nus.rsr.
i
The accompanying notes to financial statements are as integral part of this statement,
-22-
gyn. v,,..
R1.
F
9
AD
laternal Service (Yortina Capital Puad)
II,
Adjna 8udpt flp ,,,e Varianc*-
to aa -Accruas Acerall'" Pavorab16
8u wt Osaia Basis Actual ~Uafavorable)
„r
6360312 - 636,312 130,093 113,781
~636,312 - 636,312 750,093 113,781
ti I - - If
I
ill. I 1 S•U r
x00,755 4009755 379,934 24,825
ai19$445 fid 19&443i,ir 68,226 (48081). 15,880 S.S,980 33,945 (18,065)
40,693 40,693 40,693 -
200,232 200,?31- 296,532 (9i,jOQ)
636,312 r«40,693 677,005 819,326 (1121911) U,
-rww YY .r+-rw- -wMRw 1 WwI wrRwww. I f. "1 •I
(40,693) (140,6913). - (69,233) (28,540)
r fl9 I t r:.. (I
::.1 d <<':Jdr=: 3 11; ;rye r,+r:, l,uieeetlr
(20528) (29528)
310068
i, ;.1 1 ~'t ~1 :A, i1 3 1 f,f Lryx ,9r4. 2,ay ;llf
/~)71Ti1~11 l lrJ ra ~kF )F: I j( .5~ •..l
Y ,
e:' (40615), (40693)..: (710761)
(92 060)
tl (92,061)
1 (920060) 8 (40,693) x(lf]s7si) x(1630821) 9 310068
I MYYb N~ ; r,} M~., i1 ,9, nun! 4C 1, -NP .,E!
lr.J;l;. 7 ( r sl„i A _'S~.I)C~` Il.,r.;te_! ,r,,.., ,r „•a•rrslir IyP.iry qn, 7r, Y !r!"i 1 ttti~ i,rl^Stl (.h Yi t. y ! rl,te
Itr,,nr.r,rli r &'l;
Y2} ;
l
y
r.
L1
it
gar 21 imt Ims
COGINED STAlT.IX Of CUVM0 If YIMAMC2AL POOITIOM -
ALL 4ROl MANY PUMD 'tMO AMID MONLVIM U TMIA FU10)O
s-1 .rxA_VMO pulim so, 19ES
Piducisry
Proprietary Fund Types fund Type
IftsnMi 11omex}eaaeble
gate sic tGiek' ast
!OUNCES OF WONKIMO CAPITALS
Operations-
Nat income (loss) = 6,013,500 (1.;,052) (11103)
Items eat requiring working capital-
Depreciation 3,104,010 973,056 -
Awrtimation of bocd discount and expense 26,070 - -
.
Working Capital Provided (""A)
by Operations 9,2300200 760,804 (11103)
Proceeds from sets of revenue bonds 1q, 969,950 -
(Iontsibutioar
tvdRral acw tos (30: 050) -
Other funds - 1021039 -
In Sid of construction 4,2060976
Total Sources of Working Capital 33,30Si64 063,643 (1303)
..«...-iiW--
OUS OF W)RK1NG CAPITAL; ,
Requisition of property, plant and 4puipmeat 10s %3,265 1,201,915
Reduction of long-term M bt 2,045,000
Pat change in restr(•, assets and liabilities
payable from restrictad assets 114,721 -
. r•-rL-rte-HM -.rJ.-w - -
Total Ujes of Working Capital 12,722,906 1,201;9is -
Net Increase (Decrease) in Working Capital'' 620,502,170 ` (410,272) $(1,103)
rrrurrrrrr raaprrrs wormer
11,111MRfS OF OT INCkMt (DKCROASK) IN WORKING CAPITAL;
tacraase (doersaae) in current assets-
Cash and investments $19,5040461 6 (444,927) $ (402)
Accounts receivable 1,630,156 1,266 (467)
Inventory (56,241) 13,490 -
Other current assets 1,3360021 9140906 -
Increase (Decrease) in Current Asoois 220722,396 404,735 (949)
(Increase) decrease in correct liabilities
Recounts payable and other liabilities:: 2,5/3;156 (5153'696) (154)
motor deposits (1 IMP
Due to other funds (4,6!0,000) (3170311)
Currant portion of toag-term debt
Decrease (Increase) in Current Liabilities (20140,210) (903;607) (154)
Net Increase (Decrease) in Working Capital 620,502,170 $ (4100272) $ (11!03)
wrrrrrwr rrwrrwrr rrr.rrr.
The secom"Mying cotes to financial statements are an. integral part of this statement.
-24-
'$w',`:. .'lA!" CaT „p`n .l' .SF. ~9 c• ,XAWS,.. i "#w jy.'}.°.I4~AL .y. SA Y.
VI f
{I '
=Q~
(MemrnAuw Daly)
TNr lndtd
vo IN bluskill,121 ISM,
r s 1 3, 799,343 1'• 7'oA%OW
4, WOW
Isom 31,231
9,99,489 ,
2p000000 5
r
dr ~ r (1~3,~2~), f fhj 7 i/ ~ r V i 1 t ~rr f j
;470 4,~531yi'18
11,841,140 81316,S~b
2,W5,006 2,O600000
rr;~ Urfa
1140721 (408,121)
+Ji" rNM~$/~M..~.ir~' ) 'r t "u% •t' - 'ir.~ '7$'. -Si~.I-
14r004,y03~ rl~t,'.!`~►!rY1R~~~(!L l,i iC).1 Fa}t ,>r' i.~. S;.Y t~i!1 411•}'r'Irl ~'~,r~•.i :Yxi
r
~rrrrr~ ...~}.~rwryrr
120,1629803 It ON . t t t,, t $ r .
...r.+r.+.. ...n..r»...
:19,1390052 1 108430016 r+t h 1
106380933 650700944
(41,73!) ,57'093" r:t
2i~2b8,114 8, 311~'6~f, ~ ~ J ~ r ir,ir+i
1 +1r Ln~- rC!')~ r ft = 1 ! ~ 1 ,{111•j
~t(Not r 3{'. +4!~ -~r! ..r- ~ .r P•5 f` r ~
(3,0130317) 161326405
(3,W3,374) (321,414)
uo,164,w±, ! 7,790.n0
r{
rrt•
;i
~x
et K
d ir7PZ fit' f~f k i S S ET rda's'-° Fd ` fir n €4y aye r
- 7K', 1777 x .{f _ .rr` r
CITY OF NPT I TEXAS
BTAT TS
NOTES TO FINAMIA
SEPTV9ZR 30, 1985
(1) SURWY Of SIGNIFICANT ACCOUNTING POLICIES
The City of Denton ("the City"Y.Mu, 1ne6rp0r&to4'.,Beptedtar 16,
1866. The City operates as a Some Rule City, under a Council-Mancger
form of government and provides the following services as authorised by
its Charters public safety (police &hd fird),'p`sbltc aorkgjj pierksland
recreation, electric, water and sewer utiliti*&~,,,anitation, "d general
administrative services.
The financial statements of the Cit,,Yy i elude all act vities for
which the City exercises oversight responsl' The crisY'
considered in determining governmental activities to be roW,ted,within
the City's combined financial statements include the degree of oversight
responsibility exercised by the City CouneWl o 0k, the acti`4, ftjl:~bt
functions the City's accountability for the,;1`%Aty1s fiscal'[4444rs; the
scope of public service of the entity and the-natters of any spee3al
overaeee tallentitshipSeehNote 6rrR►eretcerta ' tt city I; IchIlI►ea
g y enttes for wh#ch there
was a positive response to this criteria sre'+considered for nolusion in
the financial statements. The accounting policies of the City--caafarm to geis"ly_
accepted accounting principles as appi1cable1,'t&--,fg&e16 nwentd41',kN?hodf
following is a summary of the more signific*4t,06141ess
A. Fund Acc ountint r t
The accounts of the City are maint+nined on t' ^t, bads.. of funds
or groups of accounts, each of which is conk4tted a separAte"kdounting
entity. The operations of each fund are seelgigar~ipid by proved a
separate set of self-balancing accounts wW4 Qwmprlse assats.,.
liabilities, fund equity, revenues, expense and expenditures. The
following funds and groups of accounts are,' 091) he Cite;
Governmental Fervid Types- rc,iF+
General Fund-
The General Fund is the priacipal`YWW bf the Ci't"y:""°A1'Y
general tax revenues add other receipts that are not allocated by law or
contractual agreesient to some other fund are accounted for in this fund.
-26-
t
V a As^ ;~°"'i~`';Yaf.S ~3e i'S {'1.. Y^"' z'.r ,-•-v, _as+.mir~ 2:, ~'s4%r~"
W. y . 4 y
Fresst hbls> l 4 3M1 aR#M►z i ~ jra .sp y fed abets
4#4)
and the capital improvement co&tjk.
ape cpat<, ptd4,.t
='iontih( ot+lier; #tssrit.
Special Revenue Funds-
The Special Revenue funds are used
to ;eoppt„for;;.re, ~troceeds
of specific revenge sources (other than special assessments, expendable
t Motels, or 4a30r capital, gro¢eota), that or* 1eI wot;rktsrd to
enplep"%pres. Iorr apecif d ,purposes,,, "l-xeaa gum* ipcAdp Uw fsadferal.;
reveers sharia«, ;fuMW t roots" from ;tbo ,DWRU V"t ,,Qfw A940 imp ,mss' Urbo ,
Dowlopamp%l ..(ICoswruaity, ik ""AQPN"it ploak Ccant,), aond, fr t;t;tws Taatssr
CsWa a-Ah atica +p,ivieiptf, the xeoreAtt 4P fiuad ,a td,lraiaosl a;,ounr: ot;t ,
revenue4s~t• t '.;_filif'. :;1f I ti I s r 1, 'i t:, i,{:1'
~~'.'~e ~ A~~11 _ 'E NI' , .!(,f,., t ,S•l fr trY .
The Debt Servi". Pund accounts, f:~or 110rie,;DAVIRoat of ;priecipal,,sswd
interest on general long-term debt, paid primarily by taxes levied by the
City, and for the payment of prineipal,,/mW ira,torost(IoR14e4tol ~ioqsse) in
the goverrAental fund types.
,
-Capital, Iro1e0 to F.Undar U r
1',.. 'l, Yt.,
The ,Capitabroprojrats,,Pow$ raccount ;corm Abe acgei,s, OAS 44
` capital faciaitLeerrbeLog, ;f J*asaosdgfnva bQOd!,praeAaeday; ;RSm~tr q p,, '
capital, or transfers from other fund;, other than thoge;,r*I 41g;,the
Special Assessment Funds, the Proprietary Funds, the Internal Service
Funds and the Trust Funds, : - i; s,
..y' alit -I l'J,r.
i,f, ,the ,p=►~adeir:M;searr►cgt~ >aad:~#ecertsd tgla0ceUat,4ovtb
financing of public improvemouts or;:essviaoa;,sdettwtrd"to
properties against which special assessments are levied.
Proprietary Fund Types-
. n~i,'r. st~•,,.1(a~1 !tt ~ ~ i ,•<.r'':,r;r)_9 ;ti~,lii':'iu+rv:'f,r Via,, il,,• i•,^t; r'r!
,tf r'I to teow tool Amdsrr? i _E l~:,ll t}ir(, -•'!(j rYi !)1~, { ,ri f f. '.i
,i I '.;111, 'tA
This Bntexprdr~: Fuprls r+1~Fs wked to, I,tM , i far,; apprhtions, tbstr
arse,frltsandsdlsrdt~epas~tred~~;lo m~A►4aaet'-~si~idsrr,+.toa'prih+~e;b~►itat s
"enterprises where the intont of, tira,goyr~;bordl►:;iot I:rat; t~;:ttxrltt,t.,l>
(expenses, including depreciation) of pltaviding goods or servicee to the
7ZAawml fie raj cretrti tdtr ,;mss bsc, # +psnt rRd or, r+sspyta Od primarily
thr+ompk user cheltgee w Thsaoe. foaft; ,tueivtle,.b)il ~le4tiR'ic,.:lii~jt tr, emd. S.et+,er
utility systems (Utility system) and the Mani tatipp;ppelre,>: 0.00,, .6i~ ±
latieb: akAlt vLaio4kwAoftl i{!st!J nsti'a tr a . rr r,;? ! ;r ~tri;ay,;~J, ;
e!':Ifl7ai/!:iy 9ao7 f! i9V `t'ry
>02he,+:lat*90 ,;!SNIMAIM AWAW<pocpat04, total tA$ ;fJAWAng Of
s7.l tvs7 eeldr's sFlcaMlE~,pv Cad 3tF,;a ,~d}ppR~+Ctillr~a>z„4f1 0.,Akt? to other
departsients of the City on a cost-reisrbureenut basis. These fuaAs
n
,,.L h'r.•` j" i i , r- ? "ey, rsa;. F'.. it du
.•z.zr, n;%. „v,^-..s;;^i .t `a 43. x "3 :,5~`a 1~'^~ys`r; ~3,~`~`ar,~c-a~'1~_
r _
t+or4~i~° ta>~Reft "tv+lrttiiffhor ~miru~ ~ ~ i ~3 s
~,y~, j yam. ~~y ~ ~~~~~,~~11`'~bp)'~`°f Qt"`~~Oi!!r'~IOp'~'~>t'Qt~►' ~!?:.fr i ^e- ~tR
Fiduciary Fund Type-
Trust and, Agancy Funds- , .
?rust and Agency Funds are used to account for assets held by
the City in' a trustee capacity or as an yw►t for individuals; p1rivate;
orpnfaations, other soverarsnts". and/or other funds. Tltsss include'
Expendable Triwt4und (EMpioyee 2navraiac+r3.' lfo+aaxps 3abte Trust, road 3
(Pius'One ICont'ributions), and Aganey'rWW {Payaroll ilsasx MMWWiy?
Trust Funds are accounted for in essentially the sane Manner as
proprietary funds sines capital maintenance is critical. Lxptndable Trust
Funds are accounted for in essentially the same oafpsee' " !metal
funds. Ag4ncy Funds are custodial in nature (assets equal liabilities)
and 'do ndG 'iovolw+s ,rwrasux+sMertt of results sf operations:,
'Woom it 41;itad As ets , Group of::Ado*Mts~'. ,
The General Fixed Assets Sroup of Accounts represents a suaamary
of the f ixed assets of the City, other tkan asliots of the pr4priotAry
Funds. Capital outlays in funds other than Proprietary Rinds are
rscoitded do axponditires'df tboser<futsds'''at ,tbw tim df :puretlase and
subsegi4dItly Otedrded,'for tooht'rol(1purpdsea'Ara 'the C~ineral Riasd Assdcs ;
On*# 61,1146&jntos ::r r
V-1 -
General Lang-Term Liabilities Group of Accounts«
The General Long-Term Liabilities, group 'ofalAceofitiiaspsssents
a swMSary of the ions-term liabilities of the City paid principally by
taxes irrvie '!h►. a 1 CltyJ ),Th1s4cboUAt 49"404s! not iidclWe debt
accoust4d 6r 1d the; 4fttaicpria!''Fund
so basis of Accounting
The accrual basis--The measuresant focuses for the Enterprise
Funds, Internal Service Funds and Nonexpendable Trust Yunda?are.,inEome
determination and cost of service, respectively. Accordingly, the
atet"l, battai vharroby revenues atal,ax"no", are: ideatifiscin the
account teSI pa U4-, ih 1 *h1kh, .tbey~ arv earned and`j itwurtsi 10t Of'a l s
1~ ed a soa2,.,r ►t1~ s T1s!'aibdifSed betsuslobas a pis used for
sil-o'tdrsr~ f' s<. ~ Mods ica~tiotisix~~ the scarae~i'-basirc :fare bese~ Evadsc.a!
include th* fbl laWinft `
1. Revenues are recognised vben they bedoswt bath M asurabiw r
and available for use during the year. Those revenues
troat64 as bo1,hg Mwd"tftA* to isccrual ;tmiude taxes,
J iatereiit'''atW 'iAttrn nrita~sesrt ( Awmanuo; sote,+eeir
Aii 'i
i,
yn'I_~ ~ a5r~ 2.~... S' F f~: L'.~ - ♦ . ♦ ..iA~S
f r m,`, ms`s, _.qis{~ 'fir •,'.`-'R'~^'T s2 ' aa ;5WW ;N _ re -ec rsa@c*'gP° i;Y i ;q.Tra a.
:
i
OR "-w- 72. M
from licenses, fixes sad forfeitwes, service clio", c
other miscellawwo revenues are recognised as the cash
is -received.
2. Expenditures are recognised when the related fund liability
is incurred, except for interest And principal.*a paexal s
long-term debt, which are recorded when due or ottberwise
parable.
3 Racumbrtsce-,aucouatiag4 under which purchase orders.
coatractso and.other commi to for the expenditure of,
amiss :are recorded in order to resarvo:toot .pstios!of
the applicable appropriations is employed as an extension
of formal budgetary integration. SectinbsaAgts.:
outstanding at yearend are reported as reservations of
fund halaaees'siince they 4o` noC coosbitute expenditures
or,:liabilibies:
ltjeta•land snll~etar~►J'.Ae QOUatfuu I 7 f
CJ
The City Council adopts an annual budget which covers the
Cenral Fund, the Special: Asreotie funds,: (Federal:,Aeventie; Shari ft and
Recreation Euada only), the Debt Service Fund, the Capital Projects Fund
(General Projeeta Find sibly), the Enterprise Funds, and the Internal
Service Fund (W6rkLo:S) Capital Fund only). They "*tsl:for the General,
Special Revenues Debt Service and Capital Projects Funds are prepared on
the modified accrual basis of accounting, and budgets f"J.ho Atnterprise
an-, Internal Service Funds are prepared on the accrual basis of
ac,~ounting, except for depreciation: expense which Js sOV budgeted for in
the Enterprise said Internal Servicas YwAsi.- Adjustmantef#rehreflect these
budgets on the acatuall" basis are reifleqaidj:en, pages 22 and 23 of this
report. All appropriatlion; ,spas st .t2be aoiE oL the' fifrsi, year, The
City Manager is authorised to trooofot'.budgetad Amounts within
departments; howe'verb Any revisiomp-that alter total,espeaditures of a
departasnt must be approved by the City; Couuncil,' .:I SucU. re~rsiaions are
reflected is the final 1 ameaded budget, which approx mortes Actual, in
October followingryaarWW4 ,
D. Investments
In order to facilitate cash msuoa a6yo the aParating cash of
certain funds are pooled into a comma bank account: .&r+ 'W purpose of
increasing income ;through combined invealml at aotivities.; Anvestments
(certificates of deposits U.S. Treasury Notes,, U.S. 0o rNnt and Agency
securities and repurchase agreements) are, caft1dt,ot coat, (wbicb
approximates market value). Interest sar*ned on investments is recorded In
the funds in which the investments are recorded. f c;,
E. U~+ltilled Aecei~►ables
The City accrues amounts for utility services provided in
September, but MW billed at September.:*Wv.f . -Ir,
f
_ * .y f :e... a' r , 's .;;'Tx rn f( ,.~y=ga•. goz.. } ~x -r ..r~M ,.9, J•' iys+rl W~ ~ J,y
r k::
I,t l t, .i'7 'oji;li Si.f
Inventories are valued at coat or the lowor°of,oost-'or market.
Cost is Geterwined using a moving avers«e met"od.
V. ~T::~i~ti :,lt :.iTE i•fr•;,,, IJ, fr~', ?'1 ~
The City has retained the coat records supportid&g,tbo construc-
tion or acquisition of fixed assets; however, detailed fixed snaet ledgers
have not been. maintained. ~ :guchlodgers, 'ass-t#lrrettttly =beind^4e9elop6d and
are expeoted td rbe operative io!L486.•; In the-opinion .!ofi,City`Lasnagement,
all signifioadt ,additions =and ~retiadfeots: hrvolberi reeordtd' 'f!
Enterprise and Internal.54rvice,.Funda# ,
Fixid;,assets:,are recorded, st,edit,:iaeluding'idtereit during
the construction period. Contributed property is'tecitdsd4tofair market
value at the date of contribution. Depreciation is recorded on each
class of depreciable property utilitigg; the',rata*X4t#*j3ny bethed`,eV+t~t ttie
estimated useful lives of the assets.
,r ~ ~f ~-,'/[I', ff'l i ~<tti !'.fJ!~ ~I.•i ii, i, j (~'~F:;, ! I i:l 4:.1 .i,i(.!.
r' ;Utitkted''uaetuli:lives * &d follows:!tlRe€trl'!Life-::]
Flxedtse t , ' „r i . ' (fed#s,):;
~;.II sus;?
Ent rpribe - I'mm s4.
General aaaat ?4. Structures c ; yp.. , ,r
,t; I J.-'Distri''biLtUatlt i a tai-'", ~iLr~iC
J 'oSO t f.! ijgt.; 1. J 1lil(i!9_J
' i 1 ll,'Jfl1~, j_ I'l • t: ltr
Equipment r i r V 20F'
J )
IiF t r V J
Transvissi oth aasoto --1 Eghipmentl'v r r %;20 33 : r, ,
' 'COmtlliatirOn as e~ ~ ~ r r ~ ~Ia; I lu 1 k~',t,
Equipment
Steam power assets - Structures 50
- Equipment 20 - 35 0 r.',I,c ! ,,rJr ( Q
l'1 KQater,' ands Sawet f. t -I pp 1
'u s tpte~tje ti~Y'ea!I`.IJ{i- :?fl 1~fIP l( {J(r;i;:ii(C, b:' i7., '
' r~ 1~0 +ul( :+1r c~iulu1 J~rt.i~tE~~J
rilater: aM q
aaftr tatiml P A W1 ~1 *!:.~.31 fl 17. et r J.;' J
3 Equipment 110"110
Airniture I add+ 14zt : c ; i. , > ? 111
nn,
131"e*> J t9r~L '.1r!!j!7 d S71!;'4 ? s7 .;'!Ir 1Uli
,
r.1., _I `..'a ;i i1 f'1. r IY' ' JU t~ J, ,
Sanitation <1, rr .s, I t ! ;:J fl;& 11~1 "ly s -W;
w fit id ~i tJ h1l ~ P1!J
Vehicles and equipment 10
Internal Service Funds-
IL' 1`fOt'P-5j
Vehicles and equipa"t l:, !i a 1,f►r J ,,rri t ..,cl;;l=,;r' ~t:
Ufa,! n p ,
> Sri.:
4 WNW*
IMF"
Aewwals and betterments of pr ate', sWdtgCtI 'vuama
crrr,;j„
capi,itlized. whereas normal repairs and maintenance are ahasgid to
f i(l.i i1 A, t
G" 'cal iitxid.~trte- ri l!♦:!' J3. 1 {
.:,Ga+eraL.~fiaced~aaYets<♦#e regardedas.eacpentit,'iA:'eLrel►asral [SpecialAewau0 -Capital. rPdojeets or Special Assesamente;Punds
when acquired. Such assets are capitalised !at, edst, incloidins #gtemwt
during the construction period, in the General Fixed Assets Group of
Accounts. Significant gifts or contributions of assets are recorded in
the General Fixed Assets Group of Accounts at the fair mariovultoyAl
the date of acquisition. Public, domain (infrastructure) general fined
assets consisting of streets, curbs, sidewalks, guttets!awd-+dtalse"
systems, are capitalized along with other general fixed assets. No
depreciation" iskipravided'fon'>genarat, fiitod%aaaatbv .
H. Property Tax Revenue
Property, ,taxes,,At,tA;h db 00"'eri'forceable lien on property as of
' January 1, Taxes are levied on October l and are due and payable at that
time. unpaid taxes 1evxad 00. ' t f become delinqu.nt February 1 of
the fdlIbwihX year.
"'the Ci"tr 'tecords 'revenue from currsnt . property : taxes in the
year in. which bills, are'mearursbla,agd available. A,,rs819rvo is provided
for delinquent taxes'flot'dkpected"tw bw collected in the future.
4Ra09
Ax Septeodfer ,;',}9+35, . t ity had a tax mer*~kp50 of per $1.91 per
$100 V114&t(ion Oased upon a maxim" ad volorrs A taxdd of" X1;.itioe~~t revenues up to
ae"'tmpo sed "by re' nat$' yQ *I law .W revenues
$22041i,9,9 cod be. aised:ar year
based on the current year's assessed
value of;15 ,~§a;2 8Jlie,lire t o x`i>iit is reached."'
EkPMRoni~ttl = ADar :uea - r i f , ( L ji`
:Jib
:The? CS!ty ~`1 ~fa' 11byNS' to ;a►CtW0k1 *te,6IU ll"' Vive > on;imp'to
forty 4' tiobn, rt kwiniitioti,' arty raoruYihiaud vaCatiaa' t6b wUl be' 'paid
to the employees. Generally;'' siRbt leave; is,,A*ti paid upow t'endhatioa
except for fire and policeman. Fire and policemen accumulate unused sick
leave upj te) arsNjhx hov(cf 9R( darys. i All.,, ooer Roilpha)►tss, are.'paid only upon
illness while in the waploy of the City. -
As ~V tlW' ~ r `30; I"S, the liability fo. accrued vacation
leave is 'approx$lr rely $81%,ii" find the liability fai 1,}~"d sick leave
is app'rvximately ~11.145,78t. Tho amounts appliaa$fe to the Enterprise
Funds ($281,469). and Inter",l aorviee Funds ►een recordad
in tpoil fundsr the asaggt
a'+ licable,•: to, atlur~'l ,wda
i pp ` , ,(44fjs673,874) has
been otorded idl Geuer4, ' -'feria 1.iabilitiei '1O" 'Proup. The
amountexpected 1tq paid(>nor.;current resources" is metret►ificant.
its[ I I:VR,'',I f , ,f•:., E'
f
mom
~s w.a Pr
u y ,:dk 3~rs yep
J, t~leaDr!~u '~DCa,h `
QO . n ,:1
Total columns on the combined statsalents ara,captioaedsu
memorandum only to indicate that they are presented only to facilitate
analysis. Data in these columns do not preseut fi234>KI&I ,pesitionY:
results of operations or changes in financial position in conformity with
generally accepted aceountiao prisoiplss Vhia.pftssstdtioa does not
eompare to a'C"80114ation►, Intorfund elimination ,have not been Dade in
the aggregation of this data,.
r ,
(z) FIXED ASSBTS
General Fixed,Asseta_
General fixed.asaats 4lllances agd'transactions for the year:,
ended September 30, 1985, are summarised belowt
Nleece ielwee ~ ,
lettsa►sr ~ itt ` *ioioettaaa IM 30,
% t i
4 1 SrE~i~ 1 1 41741
ryi l4i~e ,
/trssta 21,261.7» 5,275.690 k,w,,4iJ,
llecAinert eae slaip~eat .
IL no other igrrvom to 3.110,357 705,111 - 4,N5,H3
Ceastreetiet $A Or"reH td1,26!• 1,130~~52 (~ST,NS>, l,tlt,SS1
lVVrr-V urVVVr rrr rVr1 -w M-rlrrwr..
' 4eti1 0 41 r +t, f1~ ' ' t' I,N1; fS1 4 'f 331 km 0*9140.94 ,Invuteaet ka Gwnl - -
tlxd Aseets-
/rw,bo* ig4Mee. t s i 24,,2"f431 ;i;x 436.00 057.115) 131.30.124
tr;,e~trait nrewe 3,101,121 1,014;051 '1,925,942
1 ri'I f', i ,12111144 ~1454~Z4Q '131,Sg31 -~4,~}4,iN
►ow coat, rilatkpN 1,Nft,13~ 4,81f;l j ' ° If,3/3~4t44
Tote4 , 1 41.504,51 1 1,405,13! 1 ,(17.03) 01.414,10
Additions consist of expenditures from Vv Gtpital rojects
Funds (!5,817,957), the General rutd (#660,929), the Special Revenue
Funds :($355'j°190)-4 r'tile„ Sptai+~Il Assaassl"t' jund! ($R'e6013'):.., Oc"truction in
yregrdlli!►-additions' 81_,330;,660 and 'mliltssrifdcat; Ana 0357,,893) and, net
capitalised istere'at„(radnctioa of $55:10465).
~onatruet¢~on~;,i>s prttgres#% is sedr oE.the lollo
• ooxpcl o1►iz3; t , Project "Posted to
-Coaaittd
"i 41117%,ar,14tat dint le " ,~t,lf!si ;111A1!! ;4S4r11►; . ,
N
1
~~tlor. :iff , 'x 12~'~ 17,!43, 4
ffw
I r d 1 driR,4111s..Msi. a/rei~,a~,ff ,l, !7.o8~i ` 14,405 !15"''.
r1, 1e2 r11 'wii41~1'
a ~`'tsigl~ I'm, 3 ` 4!1
M ly tt 7f, 020 7,"I 11 233
MNMe Ma~,.¢tt I, t70,400 4,312 ,,145,471
►.SM.444 4,tM 2,334,310
h,l~, M ~l,l~r~. 15,101,S1t
"3Z-
r
g t s Ye* z`$+". .1 td1R'S`n."t' .Lf i , K
Fined assets of 'these funds are as folljAij i'
198y5 ~g
Utility 8ystar. ,
Land and land rights Water rights 2501,064 250,064
;PkStr# plant "A egvuirfte t 56,651,169 53,4.38,441
water piant And equip "nt 38, 769,341 33y,b§2, 890
Sewer plant and equipment 14,664,901" ' doitis '
112,1789245 1026621,309
Less- Ai'lowhhce for,depraciation (41,6081496) (382458,398)
7Q,S699749 649162,911
Constguctioa in prn6resa,` 125;299 390,164
p;'70,69S,Q4S 64'T433,075
Sanitativu-
Land and land ri8ksct L,373,5b1! 651,239
Vehicles snd equipment
331,E 82,445
Less' A146wancb fdr dapre'dfati6 (519733) (129013)
1,653,125 1 321,651
~r~s, ss~ fa~ira,nirrrr
Internal Service-
Vehiclsi aad other assets<'- 6,875,663 j„,918,452
Less!" Allowct,foT.4*preclation (39941,627) (3,634,766)
8 2,933,976 293430686
Ms.aasss.a, ..rs.......r.
(3) LONG-M DIST . ~ r
General Obligation aqd QsFtif icatt c,1
of Oblisation Roads (640-'UDte It7)~`-
~tnera P3►li~~~t on ;~~yd r treket improvomat bond * e serial
bonds '
,Ise r'fliseej 1► ,t full, sr~d credit of the CitX dnd
payablq ts",property tbs. Thy ture annually in
amountf,,, h 200 ,;fang; ptere t, )able semiannually.
f' f
.r .a• ,
-33w
,'"r' hr •itq
v s > d''i :sot Vf
f a n. v.
Bond transactions for i;:'aa~'
slsmariaad a91 follo~w s
Fonds oyta
Pr7m 7; i October 19 1984 1x0552,750
Issues 1090000000
lfat6lacl,~iet (1,272, 750)
80.0da.-outstandi Se tealbcr 30, 1985
24►2►"'Y;
fq issus ei4a 'debt at Septt'lnber` 30; f S,' 'is
Ile "fir'ii* of
the 1l `ow T!
Amount
T3,rk,snt grtkiwl pp~ffpi 0S.; i
Geaarel Obligation lotoroot lsaua Rlnaf T, "t wjp" 10
Debt
uta Data uAtImity sL IaaW ink
strost rsoon t' 2J5 to 3.20 1961 1"? i SO0,o00 f 60,000
08aeral eLllptiot 1100 W 2.1! 1913 It" X0,000 60000
Enteral obligatWii;3.3D4.25 S.00 19"57 t9119o '3t}jt~t :r: g a,,t!'y
WNrsi aliptton 6:00 to 5.00 1961 1936 10000.000 123,000
0"o"i 6biijR 4060 eq 6,50 1969 1919 1,255,000 110,000
0shesil lip tod y. to 7100 1976 1991 10000.000 900,000
Sttwt.trprovnret °5J9 a► 1.25 1914 1994 1.5000000 900,000
General abllptlon 5.23 to 1.25 1914 1994 955,000 450,00
Caneral gqbbliption 4.50 to 6.50 1976 1996 245001000 1,500.>ID(J
Doneral ObitioUtio .AO tlk.Coo 1977 1997 ~pp
~~gqpp~~~0p s ,~,ti'.9 b,r,, ?
'Oaaeral ablt4o,6lsa 15 to 1.00 1919 2000 41, x000 0,39 i o
Os moral oblidaties 2,10 to 10.00 1903 2003 CM,0451 yv
1 0oaeral obl4&4104 11.00 to 10.00 1*4t . [;;Iw , ,ijl0,0Pd+Mq,
Certilitatea of
6bligtlon $.90 1976 too? 125,000 73,600
cork lfl40ton(Of ( ~ y
obl/gt.an 6. ?5 1979 N97 170,000 1101000
Cori! ~eattea of 4r' ;
obllption 7,675 1979 1991 2151000 75t
''.ails, ion, r I'% sioioo a 10.00 1950 1995', ; : 2
u i ;i;1 t34123l,o6ti ~l4.k50tow,
MrrYayrr rrarrrrrrrr
jjj,
Aggregate maturities of the general obligation debt (principal
and interest) for the years subsequent to September 300 198$6 fro as
Tt~
follows,
+ t i< ;
Year ~r.~SP t 'tater~' 7dtlti_
,1,986> r 1,?1Ot000 10796.225 # 3.006 225
bSp, 3't$t058 ' , d
0r. , 1 r,, l
1 W6 14"
31
i , 3bt't t 0, 21
651 3 03
1r4 6
1990 344
Whereafter 16,6830000 8,515,438 2502.00,483
$24,280,000 $169506,691 #40,786,691
► rsem~wa as►aaap,4,,,,,~
W- 7 wq ,»7~4t 't-- t.: _ t b''tf '9: ""`S'i?E,' d'~t 1°fs•. 3!"` ')°=a}?ra~,C" ii.
14 n~n
of X r 1,( i, `i r: i dta a 71 i 1
procois ab
~ro`eoi' Hods` :anii'i~r'd r fe`oif' '+bi~
approved in the bond a14C" oats. the' y er sic et #y " ro{s' `itis''#Yte
use of 4224 proceeds to fund opgratiox,gpqm ues.
A r ug J ►lsa }484, t o ,C9#7 tasued a certificate of 4.41ga-
lion is xount,;P.t ~ , 16A +tas wed in special street
construct s I1: The ertiltcate of'fobl4iition is reported in the $341 isl
Axseayletdi C sd ba i g sheet.
l t'f F'ituf, i{1i i (~i,r•i
era s s~rities ~ C a '~srtificate of obpioat4on
(prir acipsl . Interest) 'Edr tNi wars t~xDsequent to !te terb~ifX1985,
are followa t
Year Priacual Interest To^
- 6 44'4
19~j
4 a4~ f{
,44 !yy ,
'4t R5ii1
77//LL f .
219000
"0.510 000 11540000 f ?04~000
~ aia~i~pt ~ F , 'rrssw~ni ~ ~ sia~u ~i~srert l
6~eWn `
~~d
t' t 1 it. 'fI t II r~
!T!ie i ty i ueif ~t i l i l ` s tees rivi of bonds c 215 '000 Odd "A
1/1
October 2! i4:4, The reveu tali ro' ist~~ 1 obl;i at#a3iZ ab e"
!
i f r 1 (r 1 u~~1 t i 1 'tt ! r 1 f
iali in var i as~ou~:r`thto8h ~9: t~teaKaEei"ranj~l k~koa
, I t, (x'12 1 P,~ ':,l} 1•JI 1 t ! I (7 q -t f.? f~}; U U,.71 41 1j,y r °
VMVMVM J, f t. h q 1
=s1J ~It~. '7,G! ,rt. :-.~}f fli "1, 1 r7 ;~h 3'.5!1 ( !'iRri 3'. ~>fif ??ff l,c'P;i [!y ~
:I''i (U 1:' rl(1 )'1 ! Jr ~C"S t 1 !`i'- r.
~r! u ~E, y~4 j , o +inE~ed Sfx
1985, are ammrfiad as is f ' , nr
Gonda outs"Aa Qctober 1, 1984 ; 26 020 000
V , t,. ~'irEl:1
.era~ee LVtl
Maturities
,
Less- Unasw?;tied Pgnd discount and expense 596,550
Net bonds outstanding, September 30, 1985 43,688,650
}rr i',,;
!U'+flYr l 1. q')7 ~ ra,irl
{ ri A.
35-i~
Al a
WW"
''Jt zb v _ 'A 1:..,wa.sa~yrT'•Si '~,r1if,F__`7p; i .~'r.:; .YV' t' Y 1 'i
at~e1~etmr~Li, incl
r 1p~Kaj1 LRs " quo, ~ i1 ii ,pa .dad A 4i41611 sC~~iflr t
spb4,o4e+en to 9dptls ai 30, '19 5,'arn sEs fa'lleri s: T~~ '
Year
~~ca it,erdat ~ota~'
X96 080, 0,00 - = 3,9n ~03~ 'b;0510031
x:.1987
198$ 000 366L47b3 5'816 1W
1989 20295,000 3',490,920 i5e of "
3s3080517
,
1990e,~ter z ,M0 ,00 ' S 1613 511
1t~~f 3'3, 3'95,00Q~ ` T,,1L10 7,3$
50`, 733
=44,285,000 645,363,400 x$9,64 aOd
wrswr~wrwwaa tiarswarrw .wwswwsswwr
In rd,d.*tion, the, Cic~~~ ,hss the opt}on to retire at par .0
.l: or a
portion of tge,bgndi, exFop,t;for` the Utility System revenue ben$sissued
October 25, 0 4 prior ~o iat'urity on or after December 1, 1993•, 'The
bonds issued 6gt6 ar 25, .9040 give tha City the same option on g , after
December 1, i4#4.
The r6venue bonas'are'collai taliied by the revenue of the
utility system and the various special funds established by the bond
ordinance. The ordinance provides that the revue of the s~~l~tem, is
be used first to pay operating and maintenance expenses of"Ehi irs'eed &nd
"C"d to'.e tablish and maintain t e raw
, ;q bond funds, Asti ,remaining
revers a sup khda be u.ed or " sn r as o
~ Any 1a.►
rdi:l.~ air,
x f
, #u,t ~ . T
contl nn p ovisigs~~ w1 Uh+ among heF'JO restrict the. #elviaa'e of
s. t r -,er r r,
additional rsvnu4e bonds unY'ess the spac'at furs aotbi' e.rr~~oa~6 e
required amounts and certain financial ratios are mat, '1`8f'`City"is"i1n
compliance ;~KiCh,,e1C, tt re axe qty. 1NI14w,_.~s,a spry of the
varibus restricted asset accounts raqu~rq,; b`y t4i bond grefft mice as of ti
September 30, 1985;
I"It
e;a ,dE si}d Kinking fund
t1~~r+►~,' 3#0009000
.
Ritrergedcy` t►und 250 000'.
Extensi,Qao and Improvement Fund 290600859
~ 1 f 1 M.Y.Y Y- ]
,,a, t •~swrswsaw
Assets in these accounts consisted of cash and U.S, government
securities. Related liabilities and retained earnings are as follows:
Payable from restricted assets-
Accrued interest #1,31Y,597
Revenue bonds payable, current 290450000
Retained earnings reserved for
bond retirement 49923,222
68,285,819
l
TV's e { i:; ti: ~!'rti t ;ra. f •lo~fr~ d~ c{.~ n ll
~ry ~ 3 t u r
. a ':<~`"`~ti"'~+`~°' rrm^-'0~avc ern tS'.ir"p~ p.'~
T
N'or'
4;iµ',Fbq##*d* and <yRPipt tat
As of 8epte+mber 30, 1965, there were" rho Se ere AA`i ah6o 'W
revenue bonds authoriaed,bmt µMissued.
(4) LZASES PAYAbLEs
Losses payable represent the remining principal amounts
p jab}o u Oor„leanto, purchos,4 Agroismo ►t} for the atquisition of vehicles
5 4,~., *10 o 1v :1+u~4f Yi ire is ei 820
cooputer` hardware and word process ng equ psient 1 3 44), . lCa~Ce 3 'es
are recordod as capital leases. The vehicles am 7t`o' `,f equi'~iienC''a`a
reFaxd d; n a zptp nab Service Fundf., the 1a44fill v1hicl4s are
rpsoc¢ss +i~ gqµ 'p$ O rgara+ dod in the Go44irslrO %#n r ners.
l.oa=-~'erm Liabilities Account'`~roisps. Re'maring reyui`*'~~ioeeu'ts~;' 'includi~ij
ietR~ft'Pf,.~. „}r. ,thp~e, l~Arss, ~~e; ~s , fpl lo»A,:.
`I •
a
Genii
Ote"i Long-Toro
Year fvla Liabilitiss S"Aft ;t on
1986 $ 577,987 $ 900339 $104,291
1487 _§4'',825 61,024 104,297
1988 1750124 47.074 65,667
1989 , ,6,170 179827
Iherraik#~ar
1, 360, 941 216, 264 27&';
Lace- ,xnt~g~Cast r oxtlc~t} 4iOt063 22~k15 2( AO5§
Net Present Value $ 950,878 $193,649 $248,703
a was r.st 419"It"a up Ouw
(5) PBNSION PLANS:
The City parse ipa~es in a pension plan sponsored by the Texas
Municipal Retirement System (TMRS), an agency operated by the State of
Texas. The plan is a defined contribution plan covering all full-time
egloyees except firman. The plan is fun40 , r,4~LLt~b +r$o ~8~;oA a, a
percentage of compensation paid to employee's. 6*44i ere i4tri
contributing an amount equal to S% of gross pay wit
contributing 5.75% of gross pay.
n , v II R ;r~ 06tel which
t c.
! t.4! f ~l _ .<<A.l, ail ffj ifl`. fid:{1 `Jt~ } i tJ
1111i.:at15V,
k w t 1 ~a fi+L .4. f aY' S,"
'RP T
W as
As of January 1, 19850 tba acte ii^t il' ~fc,.t
plsn Noefi.ty was as fg110"t
Vest d IT`,4A9,9~i4;;;
Non"sted 9149149
rlrM~wrTrv/
68v$641,0
98
rr~rw
ill. 1 l 1,1 +1 it ' x:1.1
1 tr , ; va7'we 4110*A1 ~ seCg' *O esf; nis 't' r j" 19ts'au 6d~; 3b t
a ;tom slctuairel~rMil t Vans of ba~neilir F~~leuistrd psi 'a~
i ) i n', 11 ifL~ 7 i 1 2jll i'I I ~ r7'i ire`i r 5, 4?kr'i t ! 7 j 11: r_
3n#*rs+it xfte Assata jJa r .Ji +l 1,iV t i'f 7', r.:?l.
' F'tiewliea' cre "teed' b~► F ' i~eYa'e'~e' ief,`Jti~d 9;tlreEiedt f'litn,
i4i4 r WI Wil& plian'} i r. lilrl o lr, ! I! -1 I ~r
a deb i Y IN I*ildy 20 td fug pi tOiii
cent t C
ac~IN"ad whfe'h Inc 64 amdrtiratt6 df rpir'o; Vii vi~+t dba i givdt•''3b rlati>
As of August 31, 196't 'two Haiti iiii 3'''p cerefi ' bi!'i~e' cif' it`ett d`
plan benefits was as follows
vested, `61,307,382
konvested `-U. 346
k 6T,►,461"j 728
'''rrYii~rwrraa .
The value of plan assets as. Of January i, 1985 was 62,6429431 and tlid'
actuarial present value of benefits was calculated using an 8X'i6ttie4i
rate assumpttoq...
9"enii'on ezpenae !'oi the year Beaded '8eptirher'"30, 1483, fast "sit
follow
6 42'3,130
Firearm's plan 109,144
r~r~~rrrrr
724,214
rel +_,`11 f' tl ,.)i r..1t l~..e rf &I
_I.'+1, ti„
t6)sa 1 1 ~ .f1~C ~ C~~(llr ~ c• i ill,!' 'J! ~ i. ! r 1 f t! 1 .'i:
"{I ~fl.l I f~f) IA.i iL'}9 (C7 f ,Y,h9r ~.liii?J CV { ~ I:fl +1 J. ' ,r 1, r~
Ig C41 {Flf{ l+.1 7 ii7 Y'e 1 t! col I, it !'.:t S.
Agreewea~ ~ t~►' l~-
i. +i+rI 1 761, t City~ along with the cities of bryant 3reenville
and Garland, 'fsi'tei (pe dtl i) e4ftap4d"in ti a 9orie $Mlee'contract
with the Te!sa~ 1~luiidcipa~ powez'AgexiC~r t !!PA}. "`TI AI`ifti'dfrdtlid fl trough
concurrent ordinances of the Cities and is governed by a board of
Directors consisting of eight members, two appointed by the governing
body of each city. Under the terms of the agreement,, TMPA agreed to
1J~~[,1 Y11; f i.~c 1, x 4 •'~PJ~~'f r Y• ty~~ 2~ uJn "y ~ 6 V r! ^ ~ ~Q'. ~ 1 p.,. ,..,1
Q •~L 'i,''u,45C 1~,S:i s S.Y. ~.~'Vj'IS✓, tif!..~`~`. ~rlYrfi~Fq, 18x11 i•,llly iV,, .~V],✓.4 I- '4
iq i~ c a. :.r ~T, ~f '?d?f ih',fv {T^;y TM y i f
M 2,
' construct or acquire electric generating plants' tb`WA*i~P;e
power to the Cities for a period of not lose than 35 years, The Cities
in tustk, s j +ed - t16; WeMS1e an fwtbVV p6" r mire 4a tly> %qk* to in
excess of the ai W t* ten*rettd'bf iUSir systtsts #'r*W- T AP%*, v,'j
i;btel *d tJb ca9 r ep*1tet" tote awl e+ettr%fteet` of iebtil~ ~WU6*
that` rests aft"' 1L lnjt' tw &Mk *11; diets it W Vkftt Lg . :ro1
out;'tittilai~~dlM~t,~~"iN~til~ef' tht'E;ftft~K'~uar~itL~ifd ~M'~rl4~io~t~;tK~"~
unpaid debt based, generally, upon its pro rata share of the et'it1"iy
` delivered to consumers in the prior operating year.
As of 6*ftwnbtr 30"j•'1985-, totti;lllRAr i tfnle sl il►2ei~' f
approxiwstirly'U10A 671`00 a6di'th*'C301*'mar t eWw*U-J,
approximately 21.29'%, In the opinion of management$ the possibility of
a materiel 'Osij"nt` unate, twit' guekhoub to i%iWtWf 1tl itur A is
generating operating profits and assets exceed liabillite+su,ti
Presltntl'y TMPA operates a 390 megawatt lignite-fueled
generating plant'atfd has,-an interest in a nuclear-fueled generating
plant under catnotNction~. Should TMPA be dissolved, each City would be
entitled to`bnundivided nieiiest in the property.
Siilbdted fitiin' ial~ statement information of k is
follows
September U.
4u- .;,..1 a
' U~W4i tls~
1985 198
(000's (00(Ps).;
~ ►140 ~ 86,b 8
OPERATING REVENUES S Isi,
OPERATI~*,. W ES 859291 CCi9fW, f?)
GF'F.RAT1'f'0'iONE ~i.l;~,r 102,849 1'8;513%"
0538
OTBER 90YOPEiI/4TIH(3' S`ONZO$$` tt168B1' ' (57,829) 4
'1 L'4:1(.,{~'+7: °.iJt~ ~✓,kl'liSt F1 .7-~ t4.;.i t,;f Cif ii' L~;!,.-' ~sJrl f`~1,:. ~fl; ,~~{i.
' ,.~~a~} ~tADD~ ~ C7 "t .i iY~,~'f ~!i lli;i S ;~'a '.~r~ ~ f...1J ~~~~iT.771` l l'' (1 ~~~jS~►~~6~ ~ ,
TOTAL ASSETS 1.573,240 1.399.500
LONC+-TERM DEBT 11488,994 1,3431021
2`r1R'r` UF'j ~k1Y1?'IX•~P R filllf }"'.",f:!. .':)1-~1 7t~'I ,`.%~t'- d~rf'.r~:wf
TOTAI" I'lafAaPbrTIES "1 klr',J)j320yr357,
',;i., 'lol €yr:'~ ))belt :r4 Q'P ti:?LAC ~„7lt?7Yff.!
TOTAL109junti, " :-„`r 4;~ ~r l +~.ri i ri::I ''~1f2►~731 1: , rrl,' 13 620 1
i(1 In iE4!Y (tf,•11 '1'i, .M-
I.."; UI t
'~%'4~Z E111,6t~ ,'j0 11 1!itU 'i Y:a(r 7'. ?"L. r„i! ~fI Y1 ;iY'-~ .`,1 'i•i1F: i..
:i
fiAV r
~ Co A' d S' :It 'III NA S;
"Y4~ ot" l0 1,:.~
, M~lteols+~t'! 94C44 ip*ts,oet,lr, 9A ;
tho aelutioa' of! bond alA! 4fo of.,fi;oqa.>
1ii4~DUri:a~;ibepil.!►i%,;ie"f~~lefd~ ~E ~,a"f,~i~~tc~'~cri't:yli~s
four sMlllb~ :.#!=s ~M4t~R9M]'y hiXIt., A~lllMa~r; sf~}lA#z b~ ,;i
th*11V4tY;CNi.A va, d,gtr't A,*o 'ibwti.fts,,Aire,#1", 400 47tip,
+Cawlsey;;,
and t
At September 30, 19890 tL:s City his provided ?low Meswrial
liosp re't . ~d~►3SY>000'9t~ asPPS t: tole, "Orjk,%.J"a J" aid ►N b%WgetRi to
addit3.~1, ,:lf,~aaal lraara •adtl. l~tr
8e.lectO financial ,stateaprit 4nfopmatioa of FlCdp iMapgria
hospital is so. fQ,L14
„ , SppCembeR }0,,, , {
. 1 . rl' /'H~►~lwrr.r.w+rw O-M~~~.1M}n~,
anppS (Unaudited),,
OPERATING REVOUEB. $14,1,7,1.,7" W,D18i808
OPERATING EXPENSES 130375,722 1.32650,213
OPERATING INCOME (Logs) 7960066 (6310405)
OTHER NONOP$RdING SOURCES 102000775 2900318
TOTAL ASSISTS 7,9920661 6,629,452
CURRENT MATURITIES OF LONG-TERM DEBT 225,126 1870370
LANG-TERN 'DEBT 587076; 7090056
TOTAL L2A1lIIITIES 20361,513
TOTAL SQU1W 53631,148 3sSlN6,9!~F
As of Deceqlpsr 1985, the,Ii;y+ C, ..jA, 1!M i ~ + .1t ?1p
0i4dreby all of Flow Memorial hospital's assets woolil;be irrevocably
trans ferrg4Ao a corpgmtLtgn named Flow Regional Ne6ical X
the plan, City and County payments to Flow would end.
Agreement with Lone Star Gas Company l i i r?
During 19836 the City eutered into s natural gas sales
contracQ;Mltb Lone StartQa#,1;oapany, which provides fort} S lkl, .00,
through 1988 to be used as fuel for the ,Citp's'electric generating
fac£littsaj , The cont'tqo~..:tequires that tha City estimate 444At1AV#,1r
use and provides penalties if actual usage is less thin 403 of the
estimate. No penalties were incurred during fiscal 1985, and
management does not anticipate any during fivcal 1966.
-40 ; .
d,t ~ 7i i J 11:.. + ~ o f: ,y`~t ~ f ' , lUytl , } t.
1~ :7r „y v,..+ gyp,}}d..Yf`i' ('u, s +QY9~Fr
1'+i~'33jY a a
i s ` tel. Y'tiE L a: R ' E~ F S.-, y
IT,
y
F's'.~.
i Agreement with City of Dallas- ' i'1? 41~ { r i
l1,Yf114`lm0 p ! t 'ti4tirtid` ie'tb ii**,*# 11t 61th the city
of Dallas which providei 'f*r the pur+C iii"ef'h di+ 'bf O At10`
gallonrfday of, untreated water from the City of D M49. This coatrset
will be effectii►r''i'sr 30 years.
Verf bus cfaigis1did tk rsuit"sr ire pending against the City. in
the opinies ia"City, ma~sag# R xnd ujj~i -'4eisnilaI, the poti tlal,.lotaaa,
alter inevraace cio-m;aeraga, om all claims will not hsve'a material affect
od the 'City' a fina~ial' "Wfi"fern as °bkl 04i*Aer 300 (1) SEGMENT INFORMATION FOR ENTERPRISE FUNDS f., n+'-
$egment, information for the year ended Septsmbot 30; 1985, was
as follows: `
Utility Sanitation
'System Fund Tate)
OPERATING REVENUES $679541,640 62,047-,393,$69','509;435
DEPRECIATION 3.150,098 39;720 TOl89,8).8
OPERATING INCOME 12$286,953 287-l'266 ' -12,04A0159
OPERATING TRANSFERS OUT 4,640,768 1180316 4,7590278
„04T INCOME S `974 l14 3h','38K viol 39500
t ' Ail, Jl rel.{~ .
CURRENT QQA?JTAL,CONTRIBUTIONS:
Federal sgencies "(1029058) !.,t(tY',OSB)
In aid of construction 41206,976 - n,2Ob,47¢
'i6COUNTS` ii6sil"Ll:
Accounts receivable, gross j2i 866"219 63,648'("' 12;'9"23,907
Allowance for uncollectibles 2,006,852 - 2,006,$52
Accounts receivable n 10 $339397 63-AM 104'11,055
PR0Pg1tTY0 PLANT AND EQUIPMENT
ADDITIONS 9)392,071 1; 71' 1'!~►' 3`'10;5f+3,255
TOTAL ASSETS 131 61 544 3,0221407` 124,705,731
NET WORKING CAPITAL (DEFICIT) 3807489803 (3369749) 38,4120054
BONDS PAYABLE 4108880450 11800,000 43,688,450
TOTAL EQUITY (DEFICIT) 70,8581974 (709,275) 7001499699
c;
,tiq~~l -4 n 'e~~ti S a rF~~~ p ra y 1 ~:1 `li , N ~I ! ^,.~'✓'n e}~ 4' , r~} .xa ,~7. n . ~'h.
a~YiQ~ywaY ~'Y~M A18BI+~i fi: rl! a. {f jrr 7.71.] J1:4
.S C1 r•t!j :3e A
Ad xAv4l;ti 4 4iee1! ~F,;+#~ Pf APO !09, t4 ended
V ri~,,S i U6+S 'C I'~'~ 71 )~t1 .l! i~j ~~i$~ 11.r, ~t d r"tip •.-r •Ill ? fir'~f[il Ci~'
. i ~ ~rl}~R~11 j ~es Y 11.I 'e~
had
malance8~ ~turss/
ltrtained ~cpenses
:I*te;#uud , lot" Top", Over ludget
nod
Mai w,
~}~:f` :f .'1,S rq, P_ i'O 1'•'+:; f 1P~ Ali, 1 j11 W" it {-:71J0LJ r'i'; ~k+
General l*: ♦ r ~~~!IT1 r ,:Z 1 milli
Specia) Revenue Funds:
Co comity Development
Block Grant - 77,580 6444'6 J')I
~kecreLioagl,,,,, r r:. ~r!►5.74,999
Criminal Justice - 17,458 4,b2).
Emily Fowler Library - 20 (1,122)
Debt; Service 979621
CApital Project Fum)s: n
. Airport Improvement - 212 -
Street Improvgamts 261,276
- ,
Construction Projects - 87,061 -
Killiwu $quare 29375
General Projects 411,118 59 - -
Enterprise Funds:
Ut4lity $y+it" ~Ix174$4~5 4031,098 - G? I
Sanitation 356,000 1,465,643 (7099275) X ' 0,255
Special
Assessment* { 31 w ~ t -
;'C n
4 r f li 11 1 f. i
Internal Service Funds:
Working Capital 518,140 405.492. ;"b3,i}{),, r 1420323
- -
i i S S r 1.'. ~ V ~ ~ sl ~ -1 i ! ' l 1 7 ~ ~ t L 1ST err ~ /{{(1 T qy Ft:Adt: ,rye ? 01~ I 1~ '1 ri
11 It 1[.', .J(I rlls
Ipndeble trust 6,sbb ~i1,022 w -
Agency 29141,872 n -
y r
TA 1 .90;'053S; ;8,9020558
To, W,
{f i'. I~IF ~',`IA V l 1. f VI , i~S•' V i cV~ 4 q~i t , Y f/, ~Z .u V •~z•-tw r i •7
°~Sq'.~ab t'++°1".y a .~k."71`'Ei 3^ray: c..6~' , -I- N
',+.r.u ay '~"a3 , r'Xp S y' s w.
e k "IF I ~3, 7'
(9) StMTMW - SPICUL Aisi OMPT8 FUMI
The City recopix6d revenue of approximately $5509000 in the
fiscal year ended September i0, 19809 relsted to h special assessment tax
levy in toast year. At September 300 19840 $3759240 of the assessment had
not been collected. Subsequently, it wte determined that defet;*4
revenue should have been recorded for the portion not eollocted as of
September 30, 1984. The effect of this error was to overstate revenues,
excess of revenues over expenses and fund balance and to understate
liabilities as of that date. The September 30, 1984. woo totals
included in this report have been restated to reflect tba correction of
the prior period error.
(10) SUBSEQUENT EVENT:
on November 1, 1985, the City refunded itm General Obligation
Bonds and Certificates of Obligation that were outstanding at
September 30, 1985. The existing debt was legally dvfeased as a result
of the refunding.
-43«
J
A& za
Lc`
WOM'. Y nr
APPENQIX 8
FORM OP LEGAL OPINION
z3
em,
771
e°~: , 'QS : Kf a,` fk~:, R' tas•.r. !.r'P"'4 ~'4 1`.' " P T ' k.-' K+~,i Jt'
x
t ,:M~`Ai,L. 'PARKNUA°ST 6 ~1~OA1''01'~, ; , ~ ' • - ; ,
HO//Y N. YCOAII ' Iill" 01AMON6 i"+ IROa4( *bwt*
•AYi N `JOkN /,`1LiGAtt
aaw N. # 6AL"t 4x,
MC,HARi.~2; j I t 1.:, I . :D'.-J 1 ` t ! 1 t I ~ t ~ : 1 . , y1~,1~11/{NLA~ /t
O. CHAN~C/ MO W , _ , 1 •,GOMt! tt0
♦HOMA/ 1, t~1r:~. 1 i• ; ~ r n }:fl S
M.KR *lNiylNl~MlfrN~
JOHN W. FA0Nf//1J4m,f. Alt/nND"IcS
ALAN N. RAYNOR , .
JOHN W RVrO1'Ygtl` } I 11,}^ P" ON AM N. QCNYCR
fir.. w t A ~IMM•t/iA
JCfMCY At
lC. /RrCCOLMY.. 4 i r I , I p II ~ } tA~, SA"r~ tl~i!f~11iH
HA710LQ Y, It.~1M~.• .I ,•I t I lt.~~.f I J{~. li, IE,'DANNY C%#&VCR
ALMNCA D JONN/ON
JOCL. A. G"W", fit
. ~ is
•4.16tNttp iY A/Y YOwK OLiLY
X, CAT4 1~VAflM OfryC~ , I ~ t .
9L L4 0 L
0% g
~t ~ 19,E t
~tAT
L $50 20L
r.
ASS, 004COiJb M ,900 tb&City 4 t ~ nto~. 14n l ~an~Qz~ C~Q4,ntY r
T,axsio lthe s4v*;*), hav#, to t4hQ`,14q•4litry, Ond
validity of` the issue,., Cgztifigati 4f4bli,q¢t},~ta~nitiuSly
evidenced by the certificate described above (tfio "Initi'al
Carti,4tC,a , ►vhi0 , lrn'itisl C*rtificat* originail gets boon
i+i•wsd and e v Cl reas 'A 0!in ~a ~n~,IX: ~e~~¢tOre~# ~e•~cni~icats,
ilithqui ins Brest, coupons, with the principal, dun*, tl „}rtaf
payable in, ini'ta lnpento due ort JUL)r in ~taah oi ,the yp. rp X988
throlush 007,, and with, iho , unvaid b+Lianc*of each iPt 11 nt
of priziaipal, ra V0 Y# he in9 t~exOSt1 frS+p ~to,.df
ti l Get c+tt gyp, sc , u , 4~r,4at4 P►t .
Oro, t d t~ of„ t
~0 1
L: i,,~' fJi+,..E!fl P,: I " •'r ! I.rf.i ' I i~',
1 4
E1 f; i'',~Yt' ~ Yom' 1 !l (I NOW,
tJV , 9 IM4 y
lA*itx
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on jui y i, 1999 or on anynteteit payment aierea Iif, to
accordance with the terns and conditions stated on the face of
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the Initial Certificate. The Initial Certificate may, at the
ragaest of the rogis"tod ,,owae:r of-f bOAtrs s"ed and converted
into, and/or exchanged, for, 1"ly, sagfatered certificates'.without interest coupom P Aohe dfnomi"tion of $5 f 000 or 4Ay '
"ihrY1`multiple of $5,66, and such certificates again say"be,
tz#pp.fgwrsd and/cr exchan ail 'subject to the condit34ur~
s,4 *it4 and in the manner 'rbvidid" Vi' the Ordinance ' authori* 4q
EHeiesuance of the Initial Certificate (the "Certificate with any such certificates which are registered, r
aut2tsnticated, and delivered in accordance with the Certii4:"ter
Ordinancs being hereinafter called "Definitive Corti ficat0*
WE HAVE EXAMINED the applicable and pertinent provisfon . IN,'
of the Constitution and laws of the State of Texas, and,.have.
examined a~d,rs~ie P~~ a„tray q~~ qf, , etxti$,~,fd procesdilit~s'
of the isq` ;er p~t#~'~{t~~t*, ftitf~ttished by the
issuer rsl` t h~ to' i b ~,~it ~rth'' ~X ~ 4',1 Certificate
and Definitive.Certificrtr ' saidhi W'., ..i .,.=delivery of
the Initial Certificate 3nclu4inq the exae~} Itial Csrtif-
"ida't'' ~!it3"'*" if is ' `spi f s la ' bra rii 14va`,Corti f-
`'~.ra~`e1 !n'3~`ti 2~~r e a~ailF~+~r~e'`f~' ' f~h'a 1~saf~Zeft~ for"oc~eta~bfi'ii'n
'~d,~icchan;~~tdf''~2}e ~r.i~Cial Cez~t,'fic~'t~'.' `
gA3' ED ¢N 'd~IID E l1A~fOZi, rt 23' 06A; 16VINx.Ow `tha't 'thL"
nit:l~fl'~iri'ifi4dits"dnd 64~i. ,ii~ rrid erti~' otei fiA,4 b4idi''d:ly
`thd'tizs e~i~ ihte Zhiti-al rtiiicatlihis boon dii'iv iai ~ietf' ;and
desli~r+ xed ill in a cordanco wrath ~a~►; ''Jim ihat, 'etcex A°et sia;Y
Say lir,i'ted by laws elating, to batnkruptc~, rdtirgstititat'{#bS~',' "and
; '-bovii-
`other' si ! ljkt. M&ttMt# 4'flbotin# creditors! rights Li/
na a 'atntt fi e~4ts $nl ttwi "Celt' ficaiti' 6rdiiik1c4 a ifiiti' is
bti#i....iWits 'bf; `t r tb lidt it
t"# h#'tiditaiti f ` L~~i`lhfa 3ftiri'7.xi~
Gar
constitute valid and legally binding obligate the, riiivdsr,
which, togs with the interest arson. secured by and
payable-!r f ) biii 'ad valor texas, , t
preet abed av rw iii ad
on all V Elfin the
ht
Issue, and ' . ) °l0f 0enues deri by i fi om the
apetistoa}. o C'tf#~` Denton Muriaip+r`i #~r'ettd''r'
in OUR ~+t as diseased- `frost on
the 'Cw ttf udablo fr tae • q i ° `81 the
own t ear " r~r tax pu Outos,
rezg tions~,`,; 1# elingo, an -court a sting on
the Fdato..of' r''d fR16A0 Me are 'further° o M fi+bn that
the Corti irat ear ; t "Driq 'C active bonds" an that
accof t4.,r ee`ti i lt'~►1~ n blied
ttfd it
rer'f+i c-
s fi` rite ` ~l o,
a<
oz,- ' 9~ the off` idi~lisd
A
. nio~1 ly~we a~i fetS~d' oa4 ~~~arsu;~t coif ~~tl~a
?:j t,.4;!li ' in," ,1.r.,y,. i,• in':i. "1: ',"~"f,.1 , i.'(. E,il
I
K'-
Kf ~A' ,y.n: ' r J( ~N ~•1i l+" "
Y
a a$ 3 Y R A ~T h fly'" s' r n .4
a Issuer with,, certain representations and covenants regarding
the us* and investment of the proceeds of the Certificates, we
call your attention to the fact than failure by the Issuer to
comply with such representations and covenants swy cause the
interest on the Certificates to become includable in gross
income rstroactively to the date of issuance of the Certifi-
` Cates.
WE CALL YOUR ATTENTION TO THL r that, for taxable years
beginning after December 31, 1996, a portion of the interest on
E tax-exempt obligations, such as the Certificates will be
included in a corporation's alternative minim= taxable income
for purposes of determining the alternative minimum tax and 'the
environmental tax imposed on corporations by sections 55 and
39A of the Internal Revenue Code of 1986 (the "Code").
EXCEPT AS STATED ABOVE, we expreNs no opinion as to any
other federal income tax consequences of acquiring, carrying,
owning, or disposing of the Certificates.
THE ISSUER has reserved the right to issue additional
obligations payable from taxes and/or the airport revenues
described above.
WE HAVE ACTED AS BOND COUNSEL for the Issuer for the sole
purpose of rendering an opinion with respect to the legality
and validity of the certificates described above under the
Constitution and laws of the State of Texas, and with respect
to the exemption of the interest on such certificates from
federal income taxes, and for no other reason or purpose, we
have not been requested to investigate or verify, and have not
investigated or verified, any reoords, data, or other material
relating to the financial' condition or capabilities of the
Issuer, or the adequacy of tax rolls, tax collections, or
airport revenues of the Issuer, and have not asa msed any
responsibility with respect thereto, We have reli4a solely on
certificates fumished by the Issuer with respect to the
current outstanding indebtedness of, and assessed valuation of
taxable property within, the Issuer.
Respectfully,
M
5
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5 )j y 1 l y X05,+, o t-` ~'g, p abii A~w 1
t.. ti ~.b i i.
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