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HomeMy WebLinkAbout09-15-1987 AGENDA CITY OF DENTON CITY COUNCIL 3 .r~ September 15, 1987 04 x Work Session of the City of Denton City Council on Tuesday, September l5, 1987, at 5:00 p.m. in the Civil Defense Room of the Municipal Building at which the following ite s will be i considered: t Note: Any item listed on the Agenda for the Work Session may also be considered as part of the Agenda for the Regular Meeting. S:00 P.M. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 62S2-17 V.A.T.S. 1. }told a discussion of litigation including 44''? the County of Dertun vs._ the City of Denton. J0, Art. 6252-17 f B. Real Estate Under Sec. 2(E). V.A.T.S. ti Consider offer to purchase Couuty's interest in Flow Hospital. Vi C. Personnel/Board Appointments Under Sec. 2(g), Art 6252-17 V.A,T.S. a, yy Regular Meeting of the City of Damn the CouncilrChambersuofdthe 5pptember 150 1987, at 7:00 p.m. Municipal Building at shich the following items will be considered: 7:00 p.m. 1. Consider approval of the minutes of the regular Meeting of August 18, 1987, the emergency called meeting of August 210 19878 and the special called meeting of August 25. s;. 2. Receive a report from Mr. Kenneth Stout regarding the setting of the tax r.te. 3, Public Hearings A. Consider a petition of Trinity Baptist Church requesting the following variances of the City of Denton Subdivision and Land Development ; t Regulations for a. 12.05 acre tract located at the . southeast cornor of FM 1173 and Mosch Branch Road: ~Et e ;.a a t# ' a , .,der.,,...:- J 1 { , f City of Denton City Council Agenda September 15, 1987 r`. Page 2 t ~.rticle 111, 4.03 (2)(b) - which requires s. the improvement of a 1260 foot section of Masch Branch Road. Article I1I, 4.15 (a) - which requires developers to make adequate provision for storm or floodwater runoff channels or basins. (The Planning and Zoning Commission recommends denial.) V-39. 4. Consent Agenda: ,[Each of these items is recommended by the Staff and approval thereof will be strictly on thr 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 and purchase orders to be approved for payment under the Ordinance section of the agenda. Detailed back-up information is attached to the ordinances (Agenda items S.A, S.B). This listing is provided on the Consent Agenda to allos Council Members to discuss any item prior to approval of the ordinance. A. Bids and Purchase Orders: 1. Bid 19770 - Electric Meters, Current Transformers, Meter Sockets 6 2. Bid 19779 - °ower Circuit Breaker 3. Bid 19782 - Printing of Parks & Recreation Brochures 0. Bid 1RFP 103 - Inserter Machine 5. Bid 19780 - Disposal of PCB Material 6. Bid 19783 - Evers Park 4 Hercules Sidewalks 7. Bid 1979S - Removal $ Disposal of A3bestos r S. Ordinances ss A. Consider adoption of an ordinance accepting competitive bids and providing for the award of L"%' contracts for the purchase of materials, equipment, supplies or services. i City of Denton City Council Agenda September 15, 1987 Page 3 s B. Consider adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. i C. Consider adoption of an ordinance and service plan instituting annexation of a 9.2154 acre tract of la 1279 ng and art the (Morthe eau, Forrest Survey, Abstract No. . Abstract No. 417, and being located at the northeast corner of Mingo Road and North Zoning Creek Road. (A-47) (The Planning a Commission recommends approval.) D. Consider adoption of ordinance and service plan instituting annexation of a 24.3951 acre tract of land being part of the J. Ayers Survey, Abstract No. 2, part of the B. Burleson Survey, andtr north f5, Intersection and being ocofed Rewest ctor of Poad. (A-50) (The Planning and Zoning Commission recommends approval.) n E. Consider adoption of an ordinance adopting the Annual Program of Services for FY 1987-88. Denton, Teas levying for the the F, valorem Consider adoption oof i the of ordinance year 1987; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; roviding for limited exemptions enforcement certain of collections. G. Consider adoption of an ordinance of the City Council of the City of Dento,-n designating a October depository 1, 1987 and city eding fuds Sefor a ptember e 30, 1989nning H. Consider adoption of an ordinance accepting the proposal of a Risk Retention Program for the City and authorizing the expenditure of funds. a, 1. Consider adoption of an ordinance establishing water rates for fiscal year 19880 repealing effective previous(ThBdiPublic Utilities i Boards recommends date. „ approval) t City of Denton City Council Agenda September 15, 1987 j r Page 4 J. Consider adoption of an ordinance authorizing the Mayor to execute an amendment to the power sales contract between TMPA and the cities of Garland, I Denton, Greenville and Bryan. 6. Resolutions A. Consider approval of a resolution approving a year-end budget adjustment for FY 1986-87• B. Consider approval of a resolution authorizing the City Manager to execute an agricultural lease agreement between the City of Denton and Ernest and Lewis Trietsch. (The Airport Advisory Board r recommends approval.) p .I C. Consider approval of a resolution authorizing the City Manager to execute an Airport Land Lease Agreement between the City of Denton and First Financial Resources, Inc. (The Airport Advisory P' Board recommends approval.) D. Consider approval of a resolution authorizing an amendment to the airport lease between the City of Denton and Jay D. Rodgers and Bruce Brown; and approving the assignment of Jay Rodgers interest in said lease to Charles V. Brown; and providing for an effective date. (The Airport Advisory Board recommends approval.) E. Consider approval rf a resolution authorizing the ;..f execution of an agreement between the City of Denton and Denton County relative to the County's participating in the expansion of the Animal 04 Control Center. 7. Hold a discussion regarding the appointment of a citizens committee to review alternative uses for the p, railroad depot. 8. Miscellaneous matters from the City Manager. 9. Official Action on Executive Session Items; r- A. Legal Matters B. Real Estate C. Personnel D. Board Appointments 9.. 1 J t n s 1 City of Denton City Council Agenda September 15, 1987 i Page 5 ' a 10. New Business: This item provides a section for Council Members to j suggest items for future agendas. 1 11. Executive Session: A. Legal matters Under Sec. 2(e), Art. 6252-17 s. g V.A.T.S. 1. Hold a discussion regarding litigation including Maverick vs the City of Denton. Art. 6252.17 B. Real Estate Under Sec. 2{f), oy V.A.T.S. C. Personnel/Board Appointments Under Sec. 2(g), Art 6252.17 V.A.T.S. 1. Discuss the possibility of appointments to a ^Railroad Depot Study Committee. J a~' CERTIFICATE y t I certify that the above notice of meeting was posted on the bulletin boa at the Cit H! J1 of the City o Pe LDn' o~clock ' on the day of 1987 at F +xit >v, 2743C C 4i y "1" 4 n r I AGENDA 1 CITY OF DiNTON CITY COUNCIL September 1S, 1987 i Work Session of the City of Denton City Council on Tuesday, September 159 1987, at 5:00 p.m. in the Civil Defense Room of ' the Municipal ➢uilding at which the following items will be considered: j Note: Any item listed on the Agenda for the Work Session may also be considered as part of the Agenda for the Regular Meeting. I, 5:00 P.M. j Executive Session: A. Legal Matters Under Sec. 2(e), Art. V.A.T.S. I l 1. Hold a discussion of litigation including the County of Denton vs. the City of Denton. 7 j Y•,' B. Real Estate Under Sec. 2(E), Art. 6252-17 V.A.T.S. li 1. Consider offer to purchase County's interest S in Flow Hospital. C. Personnel/Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. Regular Meeting of the City of Denton City Council on Tuesday, September 1S, 1987, at 7:00 p.m. In the Council Chambers of the Municipal Building at which the following items will be t, considered: u` 7:00 P.M. 1. Consider approval of the minutes of the regular meeting of August 189 1987, the emergency called meeting of August 21, 1987, and the special called meeting of August 2S. 2, Receive a report from Mr. Kenneth Stout regarding the setting of the tax rate. 3. Public Hearings A. Consider a petition of Trinity Baptist Church requesting the following variances of the City of Denton Subdivision and Land Development Regulations for a 12.05 acre tract located at the s southeast corner of FM 1173 and Masch Branch Road: p r ~Pl .I. City of Denton City Council Agenda September 1S, 1987 Page 2 s k Article III, 4.03 (2)(b) - which requires { € the improvement of a 1260 foot section of. , Masch Branch Road. i Article III, 4.15 (a) - which requires { { developers to make adequate provision for storm or floodwater runoff channels or j basins. (The Planning and Zoning Commission recommends denial.) Y39. 4. Consent Agenda: Each of these Items is recommended by the Staff and I 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 tads and purchase orders to be approved for payment under the Ordinance section of the 10 agenda. Detailed back-up information is attached to the I ordinances (Agenda Items S.A, 5.B). This listing is provided on the Consent Agenda to allow Council Members to discuss any item prior to approval of the ordinance. A. Bids and Purchase Orders: r` 1. Bid 09770 - Electric Meters, Current Transformers, Meter Sockets 2. Bid 09779 - Power Circuit Brea4• 3. Bid 09782 - Printing of Parks 6 Recreation Brochures Yni F~ 4. Bid NRFP 103 - Inserter Machine j S. Bid #9780 Disposal of PCB Material + r'J 6. Bid 09783 - Evers Park 6 Hercules Sidewalks 7. Bid #9785 - Removal 5 Disposal of Asbestos ' 5. Ordinances A. Consider adoption of an ordinance accepting a competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services. ~ 1 Il t 1 w 5" t ' 4: . n. ~i P City of Denton City Council Agenda September IS, 1987 t Page 3 ~ i B. 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 and service plan instituting annexation of a 9.2154 acre f tract of land being part of the J. Early Survey, I Abstract No. 12790 and the Moreau Forrest Survey Abstract No. 417, and being located at the northeast corner of Mingo Road and North Coopper Creek Road. (A-47) (The Planning and Zoning Commission recommends approval,) 9 D. Consider adoption of ordinance and service plan instituting annexation of a 24.3957 acre tract of land being part of the J. Ayers Survey, Abstract No. 2, and part of the B. Burleson Survey Abstract No. 5, and being located west of 1.3~ and north of Intersection of Rector Road. {A-50) (The Planning and Zoning Commission recommends approval,) E. Consider adoption of an ordinance adopting the Annual Program of Services for FY 1987-88. F. Consider adoption of an ordinance levying the ad } valorem tax of the City of Denton, Texas, for the ` year 1987; providing revenues for payment of current municipal expenses, and for interest and I sinkingg fund on outstanding City of Denton bonds; I providing for limited exemptions of certain 3 { homesteads; and providing for enforcement of collections, j C. Consider adoption of an ordinance of the City Council of the City of Denton designating a depositury for city funds for a term beginning October 1, 1987 and ending September 30, 1989. H, Consider adoption of an ordinance accepting the proposal of a Risk Retention Program for the City ax, and authorizing the expenditure of funds, I. Consider adoption of an ordinance establishing water rates for fiscal year 1988, repealing previous ordinances and setting an effective date. (The Public Utilities Board recommends approval) E City of Denton City Council Agenda September 1S, 1987 Page A J. Consider adoption of an ordinance authorizing the Mayor to execute an amendment to the power sales contract between 7MPA and the cities of Garland, Denton, Greenville and Bryan. i 6. Resolutions f A. Consider approval of a resolution approving a year-end budget adjustment for FY 1986-87" B. Consider approval of a resolution authorizing the City Manager to execute an agricultural lease agreement between the City of Denton and Ernest and Lewis Trietsch. (The Airport Advisory Board recommends approval.) C. Consider approval of a resolution authorizing the City Manager to execute an Airport Land Lease Agreement between the City of Denton and First Financial Resources, Inc. (The Airport Advisory Board recommends approval.) P. Consider approval of a resolution authorizing an amendment to the airport lease between the City of Denton and Jay D. Rodgers and Bruce Brown; and approving the assignment of Jay Rodgers interest w in said lease to Charles Y. Brown; and providing for an effective date. (The Airport Advisory Board recommends approval.) E. Consider approval of a resolution authorizing the execution of an agreement between the City of a Denton and Denton County relative to the County's participating in the expansion of the Animal Control Center. 7. Hold a discussion regarding the appointment of a citizens committee to review alternative uses for the railroad depot. t` ;E 8. Miscellaneous matters from the City Manager, f 4. i 9. Official Action on Executive Session Items: M A. Legal Matters I B. Real Estate Co Personnel D. Board Appointments I I , a I a ,,~..Yt4ilWri.P IM'r.i... a'. ,.Y.. u,.. . MY.+yl T City of Denton City Council Agenda September 15, 1987 Page 5 i 10. New Business: j This item provides a section for Council Members to suggest items for future agendas. i E il. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 I V.A.T.S. 1. Hold a discussion regarding litigation including Maverick vs. the City of Denton. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel/Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. 1. Discuss the possibility of appointments to a Railroad Depot Study Committee. C E R T I F I C A T E 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 , 1997 at o'clock t;. A 2743C 1 ~ f I ~e pr/ . y 7 I', A , 6l' NpM.~.,.Pr.: o...... . pry r' i i 1D I CITY ofDENTON,TEXAS MUNICIPAL BUILDING/ DENTON, TEXAS 78201 /TELEPHONE (817)688.8307 Office of the City Manager M E M O R A N D U M I TOt Mayor and Members of the City Council `J IV FROMt Jennifer Walters# City Secretary DATE: September 9, 1987 r SUBJECT: Work Session Agenda Item # 1 , 1 l i' A p No back-up materials were submitted for this Work Session agenda item. r enn er. WSPers "f r J' 2727 t 1~ u. , f d ws i , ,t11 . ' I t I .z ter, "i,adt ' yt a r i. 411E ~ MI T f} 4t I~fyl it i a 1 l y' i I 1 ~1 ~ ov 1 CITY COUNCIL MINUTES August 18, 1987 The Council convened into the Work Session at 5;15 p.m. in the Civil Defense Room. PRESENT: Mayor Stephens; Mayor Pro Tem McAdams; Council Members Ayer, Boyd, Gorton and Hopkins. 1 r ABSENT; Council Member Alexander 1. The Council convened into Executive Session to discuss legal matters (litigation including Maverick v9, the City of Denton and the County of Denton vs. the City of Denton), real estate, personnel and board appointments (Municipal Judge). 1 N0 official action was taken. Work Session item 13 was moved ahead in the agenda order. 3. The Council held a discussion regarding an ordinance amerding Chapter 22 of the Code of Ordinances to provide for a partial tax exemption for designated historical sites for a period of ten years; providing for the recapture of taxes in ' specified cases; and providing for an effective date. Council Members Boyd and Hopkins left the meeting with a ~y potential conflict of interest. irIA Dr. Bullitt Lowry, Historic Landmark Commission, stated that A 71 the public had a lot of interest in historical buildings. The percentage of abatement hau Dee,-, a point of discussion. Originally it was recommended that the amount be 751 for residential buildings and 500 for commercial buildings. Later the recommendation was for 75% for both commercial and residential buildings. The cost to the City would be approximately $10,000/year. The Historic Landmark Commission was recommending a 751 exemption for 10 years for all individually designated historically marked structures. Just because a building was located in the Historical District, did not qualify it for the exemption. Denise Spivey, Urban Planner, stated that the maximum was 10 successive years for the exemption. Approximately 30 properties were eligible for the exemption. Lloyd Harrell, City Manager, stated that the exemption would go into effect January 1, 1988. ;4'_ Consensus of the Council was to place the ordinance on the agenda for the first meeting in October. f I City of Denton City Council Minutes August 18, 1987 Page 2 2. The Council held a discussion regarding the tax rate for the 1987-88 budget. John McGrane, Executive Director of Finance, presented a budget calendar for Council review. The attached calendar (Exhibit "A") was discussed with the Council as to dates when various public hearings and notices had to be made. i The Council then convened into the Regular Meeting at 7;00 p.m. in the Council Chambers. i PRESENT, Mayor Stephensl Mayor Pro Tem McAdams; Council Members Ayer, Boyd, Gorton and Hopkins. I AbSENTo Council Member A'exander 1. The Council considered a presentation of a proclamation to W. S. "Pinky" Harpool recognizing his selection r as "Man of the Year in Texas Agriculture." Mayor Stephens presented the proclamation to Mr. Harpool. Mrs. Harpool stated that it was an honor to receive the Ai proclamation and Mr. Harpool stated that it was a pleasure that the Council would take the time to present him with the proclamation. 1. 1'he Council considered a pproval of the minutes of the regular meetings of July 7 and July 21, 1987. Counoll Member Ayer pointed out a typographical error in the i minutes of July 7, 1987 and asked for a correction. Gorton motion, McAdams second to approve the minutes as corrected. Motion carried unanimously. 3. The Council received a report from Ms. Roselle Weddle and Mr, Tom Van regarding a possible franchise for taxicab service in the City of Denton. t Me. Weddle, Denton Taxi Service, stated that she and Mr. Van felt that the City would not support more than one cab company at one time. If a larger out-of-town company set up in Denton, 4 it would bo able to absorb losses which tha Denton Taxi Service r could not. She stated that Denton had had a locally owned and operated taxi service for a long time and she would like to keep it that way. Mayor Stephens stated that the item would be placed for a discussion item at a future meeting. r rr ~ tneww,.p.,~..,, . , a r. ei4.'RP'4a:~IG.i~1h4 r... , f Y City of Denton City Council Minutes August 18, 1987 Page 3 4. The Council received a presentation of the Government Finance Officers' Association Certificate of achievement for excellence in financial reporting for fiscal year ending September 30 1986. John McG rare, Executive Director of Finance # resented P the award to the Council. This award was the highest award in financial reporting. The goal of the w program as to expand the i use and enhance the recognition of effective, complete and un-0erstandable financial reporting by state and local governmental entities. Mayor Stephens stated that this was a very impressive and important award for the City of Denton, 5. Ordinance A. The Council considered adoption of ordinance and service plan annexing 212.12 acres being part of the I. Coy Survey, Abstract No. 2121 J. Ayers Survey, Abstract No. 21 B. Burleson Survey, Abstract No. 651 N. Coker Survey, kbstract No. 249, and the R. Johnson Survey, Abstract No. 666. (A-46) The following ordinance was considered: y No. 87-141 AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS; BEING ALL THAT f LOT, TRACT OR PARCEL OF LAND CONSISTING OF f11 APPROXIMATELY 212.12 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE I. COY SURVEY, ABSTRACT NO. 212, J. AYERS SURVEY, ABSTRACT NO. 2, W. BURLESON SURVEY, ABSTRACT NO. 931 B. BURLESON SURVFY, ABSTRACT NO, 249, AND THE R, JOHNSON SURVEY, ABSTRACT NO. 6661 DENTON E COUNTY, TEXAS; CLASSIFYING THE $A +E AS AGRICULTURAL "A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE, Mcidaras motion, Ayer second to adopt the ordinance. On roll vote► McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd aye► and Mayor Stephens "aye." Motion carried j unanih,ously. 61 Public Hearings va I r~ t C city of Denton City Council Minutes August 18, 1987 Page 4 A. The Council considered a Denton requesting agricultural (A) zoning iton n 212.12 acres located 250 feet east and west of the centerline of I-35 N for a distance of 3 1/2 miles from the existing city limits. The property was part of the I. Coy Survey, Abstract No. 2121 J. Ayers Survey, Abstract No, 21 B. Burleson Survey, Abstract No. 651 N. Coker Survey, Abstract No. 249, and the R. Johnson Survey, Abstract No. 666. 2-1864 i The Mayor opened the public hearing. Bob Tedlock spoke in favor. He stated that his i not in the proposed annexation but that he did haveoaerty was eral interest in the surrounding property. A batch plant had nbeen established in a residential rural neighborhood which he felt was a detriment to his property. Given a choice betwaen letting the land develop in an uncontrolled way and paying additional taxes for being annexed into the City, he would chose the taxes. No one spoke in opposition. The Mayor closed the public hearing, Cecile Carson, Urban Planner, stated that 32 reply forms had been mailed with 4 returned In favor and 1 in o Staff was attempting to assign PPosition. annexation to the property, permanent zoning at the time of The following ordinance was considered: NO. 87-142 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR AN AGRICULTURAL USE DESIGNATION FOR 212 ACRES NIOF ANNEXED I ANDON AND " LAND BEGINNING WHERE THE NORTHERN CITY LIMITS INTERSECTS INTERSTATE HIGHWAY 35 AND CONTINUING NORTH ALONG AND PARALLEL TO SAID HIGHWAY FOR A DISTANCE OF a 3.5 MILES, AS MORE PARTICULARLY DESCRIBED HEREINI ' PROVIDING FOR A PENALTY IN A MAXIMUM AMOUNT OF $1000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motion, Hopkins second to adopt the ordinance. On roll vote, McAdams "aye," Hopkins "aye," Gorton "ayeAyer "aye," Boyd aye, and mayor Stephens "aye." Motion carried unanimously. mt. City of Denton City Council Minutes August 18, 1987 Page 5 B. The Council considered a petition of Donald R. Curtis and the City of Denton for annexation of a 9.2154 acre tract of land being part of the J. Early Survey, Abstract No. 1279, and the Moreau Forrest Survey, Abstract No. 417, and being located at the northeast corner of Mingo Road and North Cooper Creek Road. (A-47) ) The Mayor opened the public hearing. 1 No one spoke in favor of the petition. t ii No one spoke in opposition of the petition. The Mayor closed the public hearing. Cecile Carson, Urban Planner, stated that this was a voluntary annexation of approximately 7.9 acres and an involuntary annexation of approximately 2 acres by the City of Denton. The property was being submitted for zoning and the annexation would provide an opportunity to impose the City' subdivision j regulations to the property. The second public hearing was ` i scheduled for August 25, 1987. y Consensus of the council was to continue with the annexation. C. The Council considered a petition of the City of Denton for annexation of a 24.3957 acre tract of land being part of the J. Ayers Survey, Abstract No. 2, and part of the B. Burleson Survey, Abstract No. 651 and being located west of 1-35 anu north of intersection of Rector Road. (A-50) The Mayor opened the public hearing. Mr. Bob Tedlock spoke in favor. He stated his comments were the same as for the previous annexation. He favored annexation over uncontrolled development. l No one spoke in opposition. The Mayor closed the public hearing. Cecile Caron, Urban Planner, stated that this was a site for a proposed batch plant for improvements to 135 which were currently underway. The batch plant application, at that point according to the Texas Air Quality Board, had not been applied for. The asphalt batch plant application had been denied by the State and the State office. t. Consensus of the Council was to continue with the annexation process. N, l ! City of Denton City Council Minutes August 18, 1987 Page 6 7, Consent Agenda Mayor Stephens stated that Item 7.A.1. would be special consideration, pulled for Hopkins motion, McAdams second to approve ~ j with the exception of Item 7.A,1. Motion carried una imously. i Consent Agenda A. Bids and Purchase orders: it Pulled for 1. Bid 09763 - 800 MHz Radio System Discussion i 2. Bid 49766 - Power Transformer Equipment f 3. Bid 09767 - Switchgear E 4, Bid 49771 - Fiberglass Grating 5. Bid 09772 - Transformers 4 t 6• Bid 49775 - 3U Gallon Refuse Bags 7. Bid 09776 Accounting Sound Ref].acting Panels B. Plats and Re plats 1. Consider approval of preliminary plat of the o Denton Municipal Utility Addition, Lot 1 of Blocks 1, 2 and 3, C Tax Refunds 'w! 1. Consider approval of a tax refund to Allied Bank for $3,573.40 2. Consider approval of a tax refund to Dr, Ed Wolski for fl# 156.60 pkj The Council considered item 7,A.1, from the Consent Agenda. ej Lloyd Harrell, City Manager, stated that the item was a radio I proposal for the City which would modernize the radio fleet, " initially concentrating on the Police Department and Fire { Department. Mesa Communications had protested the bid and z~ . t i r City of Denton City Council Minutes August 181 1987 Page 7 contract. The city Attorney, Purchasing Department representatives and the City Manager had met with representatives from Mesa Communications to discuss the problems raised. Mesa Communications stated that they only had a very short time for formal bid. About a month before the bids were opened, specs were sent to all known suppliers. Legal notices were placed in the Denton Record-Chronicle at the appropriate time. Approximately one week before the bids were forCommunications allfrom specsMesa opened that or the letter inwas formed received and 1 asking they be communication devices that the City might put out for bid. 4 Upon receipt of that letter) the bidder was sent a complete copy of the specs. Mesas complaint was that they only had about 4 days to put a spec together. After the process was explained by the Purchasing Department for the bidding system, the representative was satisfied on that account. One other point that Mesa raised was that the specs were written in such a way that it limited the companies that could bid on the product. As a City organization) that was a practice that was not followed so that as many bidders as possible could bid on a 'x project for a very competitive market. In this particular case, the representative was concerned because he felt that the way the specs were written, the Motorola company was the only company that could competitively bid on the product. Staff comments were that other companies indicated that they could have bid on the product but it would have been far more a t' -k expensive and probably not competitive with Motorola. Staff a~ admitted that on a competitive basis, the firm that could bid on this product was the Motorola Company. The reason was that the City needed a compatible system with Lewisville and t, Carrollton. # Stephens motion, Gorton second to approve the Consent Agenda item 7.A.1. Motion carried unanimously. 8. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services, The following ordinance was considered: NO. 87-143 i .f AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE Of FUNDS THEREFORE AND PROVIDING FOR AN EFFECTIVE DATE. a City of Denton City Council Minutes August 18, 1987 Page 8 j Gorton motion, McAdams second to adopt the ordinance. On roll ? vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. B. The Council considered adoption of an ordinance authorizing the Mayor to execute a letter of agreement with Municipal Administrative Service, Inc. for auditing services relative to the City's franchise professional with GTE. IJ The following ordinance was considered; ! i NO. 87-144 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A LETTER f OF AGREEMENT WITH MUNICIPAL ADMINISTRATIVE SERVICES, INC. FOR PROFESSIONAL AUDITING CERVICES RELATIVE TO THE CITY'S FRANCHISE AGREEMENT WITH GTEJ AND PROVIDING AN EFFECTIVE DATE, 1 John McGrane, Executive Director of Finance, stated that this ' would be an audit of the services provided by GTE to make sure that the City was receiving all of the fees it was entitled to receive. The cost for the services was on a contingency basis with the company receiving 50% of any amount that they discovered that would come back to the City. McAdams motion, Hopkins second to adopt the ordinance. On roll s vote, McAdams aye, Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "nay," and Mayor Stephens "aye." Motion carried with a 5-1 vote. i rf r Resolutions The Council considered approval of a resolution 4 authorizing application to the Railroad Commission for the City v; of Denton to become a part of the Fort Worth Commercial Zone and the Dallas Commercial Zone. i The following resolution was considered: ^i RESOLUTION NO, R87-048 A RESOLUTION AUTHORIZING APPLICATION TO THE RAILROAD COMMISSION FOR THE CITY OF DENTON TO BECOME A PART OF ci,l THE FORT WORTH COMMERCIAL ZONE AND THE DALLAS ' COMMERCIAL ZONE, AND DECLARING AN EFFECTIVE DATE. 1 r i ~ rF I City of Denton City Council Minutes August 18, 1987 Page 9 Betty McKean, Executive Director of Municipal Services and Economic Development, stated that this item had been approved last year. This was an updated resolution with the current Mayor's signature and three other cities included in the application. Hopkins motion, McAdams second to approve the resolution. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. 4 B. The Council considered approval of a resolution authorizing the City Manager to execute an interlocal assistance agreement for law enforcement in Denton County. The following resolution was considered; RESOLUTION NO. R87-049 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ' AN INTERLOCAL ASSISTANCE AGREEMENT FOR LAW ENFORCEMENT a IN DENTON COUNTY AND DECLARING AN EFFECTIVE DATE. Captain Bill Cummings, Denton Police Department, stated that this was a mutual aid assistance program for emergencies with other cities or the County or the City of Denton to give aid to others. It also gave the City a tool to do indepth investigations in burglaries, narcotics, etc. It would provide a better conviction rate with more people testifying on one case. 1 Mayor Stephens asked about the liability if someone were hurt here in the City of Denton. Debra Drayovitch, City Attorney, stated that there was a provision that each party waived claim to other parties in the ` a agreement. She stated that other alternatives were being looked at for alternative language. The agreement wa,s for only ' one year and other language could be substituted at a later t date. Ayer motion, McAdams second to approve the resolution. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried 147 t unanimously. S " 10. The council received a report certifying to the estimated tax collection rate for the 1987-68 effective tax rate. A y City of Denton City Council Minutes August 18, 1987 Page 10 John McGrane, Executive Director of Finance, stated that under Senate Bill 1420 which became effective June 20, 1987, the City was required to use an estimated collection rate in the effective rate calculation and also required to certify the rate to the Council. The Finance Department had used the rate of 99.96 which was based on the total current and delinquent estimated collections as compared to the current levy amount. 11. The Council held a record vote on a proposal to consider a tax rate increase of 7.496 above the effective tax rate. Lloyd Harrell, City Manager, stated that the 7.496 proposed increase above the effective tax rate would hold the tax rate at the current levy of 590. The administration's " recommendation would be to take the record vote by the Council. Hopkins motion, McAdams second that the Council consider a tax rate of 590. On roll call vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "ayeBoyd "aye," and Mayor Stephens aye. Motion carried unanimously. J 12. The Council set the dates for public hearings for the 1937-88 budget and tax increase. • Lloyd Harrell, City Manager, stated that based on an earlier i> discussion that evening, the City staff would recommend public notice announcing a public hearing on the proposed budget for September 1, 1987 at 7:00 p.m. Proposed hearing on the proposed tax rate for the next fiscal year on September 8, 1987 at 7:00 p.m. The public hearings would be held in the Council ti•`' Chambers. Consensus of the Council was to proceed with those dates. : 134 The Council received a report from Carl Young regarding the annual Easter Egg Hunt and impound fees from the Animal Control Center. i Carl Young stated that the City would no longer sponsor the Easter Egg Hunt. The Vietnam Veteran Association would like to sponsor the hunt and was requesting City approval. Regarding ! the impound fees from the Animal Control Center, Mr. Young iii 4 i stated that indigent people had no way to pay for fees when the animals were impounded for running loose. He asked for a work plan to work for the City to pay off the fees or a program to add the fee to an electric bill for the elderly and handicapped. ,'4 k f, . f City of Denton City Council Minutes August 18, 1987 Page 11 14, Miscellaneous matters from the City Manager i Lloyd Harrell presented the following items: A. David Ellison presented an update on the latest hearings regarding proposed EPA sanctions. 15. There was no official action taken on Executive Session items of legal matters, real estate, personnel or board appointments. 166 New Business 1 The following items of New Business were suggested by Council { Members for future agendas: A. Mayor Pro Tem McAdams suggested the possibility of having a called meeting to deal with the letter from the County Commissioners which asked for a response within 10 days, y Mayor Stephens stated that he had received a call that day from E Judge Vic Burgess asking for a conference on the issue for Y Wednesday. Mayor Stephens asked for the Council to authorize ,r. the City Manager and the Mayor to meet. with Judge Burgess and another Commissioner along with r'••e Finance Directors and Attorney's of both entities. Council Member Gorton urged city officials to meet with the County officials as soon as possible to show the City's willingness to communicate and negotiate with '>he County regarding Flow Hospital. 'c Consensus of the Council was to have the above named delegates ! meet with the County Commissioners and to have the item added f to the special call meeting of August 25, 1987. 17. The Council reconvened into the Executive Session to discuss legal matters, real estate, personnel and board appointments. No official action was taken. rok° With no further business, the meeting was adjourned. ` r 4 t i 11 V t RAY STEPHENS, MAYOR CXTY OF DENTON$ TEXAS r JENNIPER WALTERS tire' CITY SECRETARY CITY OF DENTON, TEXAS 2732C ,p ti yr Q EXHIBIT "A" bUUUEI AND lAk RAZE PkUCESS SCHEDULE Adoption of Tax Rate If Adoption of Tax Rate If Different from 591 (not on Council Adoption of Recommended Schedule for tax Different from 591 Ito be September 15 but Prior to 107-1988 Budget Rate Adoption at 5tj{ _ Approved on September 15) September 20) AUGUST 17 Notice of Public Hearing on Budget 18 . . . . . . . . . . . . Take record vote on proposed tax Increase 94 , , , , , , , , , , , , , , , N n t l c e of public hearing i in Denton-Record thrunIcle 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . Take a record vote on proposed tax increase 28 . . . . . . . . . . . . Notice of public hearing in Denton Record-Chronicle SEPTEMBER l Public hearing . . . . . . . . . . . Take a record rote on proposed tax increase / . . . . . . . . . . . . . . . . . . . . . . . . . . Public Hearing........ . Notice of public hearing in Denton Record-Chronicle , , , , , , Public Hearing . . . . . . . . . Notice of tax vote in Denton Record-Chronicle l; , , , , , , , , , , , , , Notice of tax vote in Denton Record-Chronicle ll . , . Public hearing 1S Adoption of budget Vote to adopt tax rate . . . . . Vote to adopt tax rate , . . . . . . . . . . . . . . . , . . Notice of tax vote in Benton Record-Chronicle l B . . . . . . . . . . . . . . . . . . . Special Council session to adopt the tax rate 'IF % p ~ t d ITEM- CITY OF DEMON CITY COUNCIL MINUTES August 21, 1987 The Council convened into an Emergency Meeting at 5:15 p.m. in the City Manager's Conference Room. PRESENT: Mayor Stephensl Mayor Pro Tem McAdams; Council Members Ayer, Boyd, Gorton and Hopkins. ABSENT: Council Member Alexander 1. The Council convened into Executive Session to discuss legal matters (settlement negotiations in the County of Denton vs. the City of Denton and the offer of sale and sale or lease/purchase of Flow Memorial Hospital as set forth in the County's letter of 8-17-87), real estate, personnel and board appointments. No official action was taken. The Council then convened into open session in the Council Chambers. 2. The Council held a discussion regarding various options available ire response to the County's letter of 8-17-87 with respect to Flow Memorial Hospital. Mayor Stephens recognized Coun^fl Member Gorton. Council Member Gorton stated that he realized that certain k individuals would use any means to bring about the demise of ' Flow Memorial Hospital any' with a firm belief that his fellow Council Members would deliberate with all diligence regarding Flow Memorial, he recogni,.ed that a potential conflict of interest question might surface and he did not wish to > jeopardize the decisions of the council in any way. Therefore he excused himself from the meeting. Lloyd Harrell, City Manager, presented several options available to the City in regards to the Flow Hospital situation. Option l: Accept the Hospital Board's request for two cents tax levy on the part of the City which would generate approximately $400,000 and challenge the County to make a levy decision of their own that would be put iately to financially assist Flow Memorial Kos ital. The immedment the $ 400,000 would be similar to the $200,004 given aearlierfwith the for i that if care, the Court found $4000,000 would the help City resonsible ,i obligation. Adyantaaea of Option _rI'. (i) The risks were too large for the City to assume full responsibility of the Hospital. t hr a q; City of Denton City Council Minutes August 21, 1987 Page 2 The option would allow the City to clearly state to the community that it had clone all it could reasonably and responsibly to provide support for the public hospital. It would also challenge the County to join the City to see that a public hospital continued in the community. (2) The level of subsidy might allow the Hospital to continue to operate for a substantial period of time. (3) The option, without taking ownership interest, would allow the City not to assume more financial obligations for the Hospital. The allocation of $400,000 to Flow Hospital would allow for an offset of future financial obligations of the city if it were found responsible for a portion of the indigent health care costs. (4) Timing still would make it possible for the City to increase the tax rate for the next fiscal year by $.02 and make that $.02 allocation to Flow Hospital. That action would require the City Council to start in motion at the next meeting the intention to levy a tax rate of up to a $.61/$100 evaluation as opposed to up to $.59 which the City currently had. Enough time would be allow to include the public hearings and notice to adopt that tax rate. Harrell stated that if the Council felt that an allocation of tax funds should be made to Flow Hospital, the administration would strongly recommend that the additional tax rate be taken rather than trying to go into departmental budgets to find the money. Disadvantages of option is (1) No permanent solution would be made to the Flow Hospital problem. Over $800,000 of y accounts payable outstanding would remain. The medical staff and hospital staff or any of the creditors might become f impatient at not seeing concrete action taken that would permanently solve the Flow problem and independent action on their part might force the closing of the Hospital irrespective of city action. (2) The option had the possibility of prolonged litigation between the City and the County if the County refused to make a tax allocation to Flow Hospital as they had earlier indicated. The possibility of such litigation might have an effect on other joint programs with the County such as the library, the health unit, civil defense funding and emergency medical services. (3) The option would allow the instability of Flow Hospital to continue. Option II: Join with the County in partnership in ff pursuing the sale or lease/purchase of the Hospital to a third i ` party. A I Advantages of Option II: (1) If successful, the City would remove itself from the hospital business, reduce or substantially eliminate associated liabilities, and have an opportunity to get a portion of the indigent health care ? obligation, if any, funded by a potential buyer. City of Denton City Council Minutes August 21, 1987 Page 3 (2) The City and County would work in partnership and relationships between the two entities would be positively affected. (3) Soliciting offers for the sale or purchase of the Hospital, even if at the same time the City was pursuing the poss'bility of ownership, might help the City in seeing if there were interest in the Hospital and to get a better inright into what the Hospital was actually worth. (4) If a buyer would be found and the Hospital were transferred to the buyer, the economic advantages to the community as far as jobs and economic benefits, would still be retained. Disadvantages of Option II: (1) The community would lose the fee and service advantages associated with a l not-for-profit hospital. (2) The option would provide for a widening gap for the "medically indigent". Title problems with the Hospital might prevent a rapid sale or lease/purchase of the Hospital. Option III: Enter into serious negotiations with the County in an attempt to assume ownership with the Hospital. Advantages of Option_ III: (.7 The stability of Flow Hospital would be restored. (2) The option may be the only viable way that a public hospital woula be guaranteed to continue in the community at that point in time and with the County's current stance. ;F Disadvantages of option I(1) The City would be assuming very substantial risks. According to the Flow Hospital budget, a subsidy next year by both parties of $2,000,000, would be needed, $1.2 million for indigent health care costs and $800,000 for a general subsidy. The City might be responsible for a minimum yearly payment of $1.4 million if found responsible for indigent health care. That would be the equivalent of a tax rate increase of $.07. (2) The hospital industry was very unstable and if the city did assume ownership and ran it for a while, and despite the City's beat efforts, the Hospital was forced to close, the City would be faced faith liabilities of approximately $4 million plus unemployment compensation. (3) If the City took on the ownership of the a. Hospital, there might he pressure by a Hospital Board or others, to make necessary capital improvements ar. Ind those improvements with a bond issue. , Option IV: Not do anything. l I j ; i City of Denton City Council Minutes August 21, 1987 Page 4 The option that stood above the others was to reject the County's latest offer because of the immense financial burden it would place on the City because of the City's relatively small tax base. At the same time, showing the City's good faith effort and the City's desire to do whatever it could to keep the Hospital going by allocating a $.02 tax for Flow Hospital and challenging the County to also allocate tax funds. On the other hand, the option was available either separately or together to do a sale/purchase together with the County or to enter into negotiations with the County for ownership. Mayor Stephens expressed appreciation to the members of the Commissioners Court who were present for their attitude of trying to find an equitable solution to the problem in a minimum amount of time. Council Member Boyd asked Mr. Harrell if the dollar amount noted for indigent care included the liability which might be forthcoming to Flow for indigent care treated at Parkland and John Peter Smith Hospitals. Harrell replied that the Hospital acknowledged that the $1.2 million was "guess-estimate" as to what the obligation might be next year. The Hospital acknowledged that to ante, although the Hospital knew people were being treated at Parkland and John Peter Smith, no bill had been received for indigent health care. Mayor Pro Tem McAdams stated that she felt it was quite clear that the County Commissioners had determined that it was not in the best interest to continue to participate in a public hospital. She felt that the City's first responsibility was to the tax paying public. It was needed to determine if the City } warted to save Flow and if so, determine how best to keep it going. The Hospital was an economic asset to the City with a ^x significant employment base which the City would be faced with loosing if the Hospital closed. A lawsuit had been filed to attempt to determine what responsibility the City had for indigent care. Senate Bill 1 seemed to suggest that the City ' was responsible for indigent care. Some money nad to be put in the budget to take care of the possibility of the outcome of % the lawsuit if it were not in the City's favor. Some provision had to be made for the possibility of paying for indigent care because if it were not, serious consequences might arise in the budget with cutbacks, lay offs, etc, just to pay the bill. y That would be irresponsible. She was not suggesting that the citizens of the City bF- responsible for indigent tNre for those citizens who were outside the City, If the City owned the public hospital, what would be the responsibility to others outside the City for indigent care. The City would not be able to pay for all the cost for indigent care in the entire County, City of Denton City Council Minutes August 21, 1987 Page 5 Her feeling was to enter negotiations with the County to take over ownership of the Hospital if legally possible to do that without having the financial responsibility of county-wide indigent care. Council Member Hopkins stated that she did not want to close Flow The Shetwouldd be comfortable fiscally with responsible he$. 02 taxhinregards crease to be earmarked for Flow. She would have a problem if the money would only keep Flow going for 30-6J more days, for that would not be a wise decision. If the City were to take on full ownership of Flow Hospital, it would take on all the financial liabilities it had and might bankrupt the City if Flow were to later close. For the City to take over the sole responsibility of Flow Hospital was fiscally irresponsible. She could not, at that point in time, vote for the City to solely take over Flow Hospital. Council Member Ayer asked Mr. Harrell to explain an advantage he stated to Option II that all or most of the City's indigent f - care might be taken care of by a buyer. i Y Harrell replied that a possible sale arrangement might be to include the buyer assuming a portion of the indigent health care responsibility. Ayer stated that emotions needed to be kept out of the decision process and to face realities. Emotionally, he wanted to take the Hospital and run it. Realistically, that was not a viable option and the City was not ready to support the Hospital at that time. The financial obligation was too great for the City at the present tax base to assume unless it had assurances on a number of points with regard to the financial burden. He was opposed to health care solely for profit. He would endorse a $.02 tax increase and challenged the County to reassess the situation. i Council Member Boyd stated that the ! the Hospital rested with the County priThe issueonbeforetthem boiled down to did they want to keep the valuable public institution of Flow Hospital as a viable institution in the community. He felt that the City should work with the u, Commissioners to keep the hospital viable. He did not have a whole lot of hope that the City would be able to do that. It would take an admission that there was a benefit to that public k institution and that it was worth paying for. He felt that all involved felt that there was a benefit but not all public officials involved were willing to pay for those benefits. City of Denton City Council Minutes August 21, 1987 Page b Mayor Stephens stated that for the sake of the community and its citizens, the City needed to find the best way to oolve the problem of Flow Hospital. The county-wide tax base would be the best approach with the County Commissioners Court being a i viable institute to manage Flow. However, that idea did not seem to be one of the options available. He felt that the $.02 ; tax increase would give some time to provide money for indigent I care. He would like to explore the possibility of keeping within the 81 4.591 it possible even with the $.02 for Flow. He suggested a study session item to see if the adjustments could be made to allow for the increase within the $.59. The problem would be what services would have to be trimmed, other services that people would expect and would be willing to pay taxes for, might not be possible. That would be a challenge j for the City to keep that idea in mind. I With no further business, the meeting was adjourned. as RAY STEPHENS, MAYOR f CITY OF DENTON, TEXAS r i JENNIFER WAL'TERS CITY SECRETARY CITY OF DENTON$ TEXAS 6' t I. 27340 r~ y~f r. ,AI, ,I 11 I, I' YYa !h` e{ 4 ' Il ?1J r.. I ~ ,R I % a s7, CITY OF DENTON CITY COUNCIL MINUTES August 25, 1987 The Council convened into a special called meeting at 5;15 p.m. in the Council Chambers. PRESENT; Mayor Stephensl Mayor Pro Tem MCAdamsl Council Members Ayer, Boyd, Gorton and Hopkins. ABSENT; Council Member Alexander 1. Public Hearings A, The Council considered a petition of Donald R. Curtis and City of Denton for annexation of a 9.2154 acre tract of land being part of the J. Early Survey, Abstract No. 1279, and the Moreau Forrest Survey, Abstract No. 417, and being located at the northeast corner of Mingo Road and NorCh Cooper Creek Road. (A-47) The Mayor opened the public hearing. No one spoke in favor of the petition. No one spoke in opposition of the petition. F The Mayor closed the public hearing. F Cecile Carson, urban Planner, stated that this was a voluntary ' request by Mr. Curtis with additional property being annexed by the City of Denton. Two reply forms were mailed with none ° returned. Staff recommended continuing the annexation process. h k Consensus of the Council was to continue the annexation process. B, The Council considered a petition of City of Denton for annexation of a 24.3957 acre tract of land being E part of the J. Ayers Survey, Abstract No, 1, and part of the B, { Burleson Survey, Abstract No. 65, and being located west of I-35 and north of intersection of Rector Road. (A-50) The Mayor opened the public hearing. No one spoke in favor of the petition. L .I rn Mr. Junior Krepe, Duininck Brothers, spoke in opposition. He stated that this was a highway contract with the 135 project, He requested a slight delay in the public hearing as his attorney was not yet present. Consensus of the Council was to grant a delay in the public hearing. Council Member Alexander joined the meeting. ♦ 6 City of Denton City Council Minutes August 25, 1987 Page 2 2. Ordinances A. The Council considered adoption of an ordinance and service plan instituting annexation of 73.334 acres of land being part of the M. Forrest Survey, Abstract No. 417. (A-43) The following ordinance was considered: No. 87- AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS: BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 73.334 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE M. FORREST SURVEY, ABSTRACT NO. 4171 DENTON COUNTY, TEXAS: CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY: AND DECLARING AN EFFECTIVE DATE. I Lloyd Harrell, City Manager, stated that all of the Ordinances presented tonight were voluntary annexations connected with the Lakeview Development. McAdams motion, Hopkins secona to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton 61 "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. B. The Council considered adoption of ordinance and j service plan instituting annexation of 26822 acres of land { being part of the M. Forrest Survey, Abstract No. 417. (A-44) I The following ordinance was considered: NO. 87- AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS: BEING ALL THAT i LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 2,822 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND i BEING PART OF THE M, FORRE5T SUAVE Y, ABSTRACT NO. 417, DENTON COUNT, TEXAS: CLASSIFYING THE SAME AS r AGRICULTURAL "A" DISTRICT PROPERTY: AND DECLARING AN EFFECTIVE DATE. k S McAdams motion, Alexander second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "eye," Ayer "aye," Bo d "aye," and Mayor Stephens "aye." Motion carried unanimously. City of Denton City Council Minutes Augisst 251 1987 Page 3 C. The Council considered adoption of ordinance and service plan instituting annexation of 1.834 acres of land being part of the G. Walker Survey, Abstract No. 1330. (A-45) The following ordinance was considered: NO. 87- AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS: BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 1.834 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE G. WALKER SURVEY, ABSTRACT NO. 1330, DENTON COUNTY TEXAS, CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY: AND DECLARING AN EFFECTIVE DATE McAdams motion, Hopkins second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. The Council returned to Item #1.B. Dick Kelsey, attorney representing the Duininck Brothers, stated that this was a construction project for the interstate improvements from the Cooke County line to Lake Dallas, The construction contract was from the State of Texas and the United States Government to construct improvements and only for that reason. The project would take a minimum of 2 1/2 years to a maximum of 4 1/2 years depending on the construction project. Duininck Brothers had a dispute with the City as to whether the project was a subdivision. They did not own any property, had not purchased any property, did not have any options to purchase any property, and did not intend to purchase any property, They had a short term lease only. The property was being used as a construction material site and a construction improvement site for the construction of the improvements on the highway. His position on the annexation was that an annexation should be bona fide. It should be for the purpose of bringing land into the City to make it a part of the City. They felt it was unfair and a the rights of the people who owned and oc occupied violation property when the sole purpose of bringing the property into he City was to exercise zoning control over the property, The use was perfected in the area and had been used for a number of months for the construction site. It would be vacated and returned to its normal condition when the project i City of Denton City Council Minutes August 25, 1987 Page 4 was completed except for the option of keeping the metal shed which was currently an equipment barn. He challenged the City staff to tell them how they were going to provide services that would be of any value to the property. This was a controlled situation, a power play by the City and objected on those attempt to ad did not feel that this an honest a to be used by the City. He requested denial of the annexation. Junior Kreps stated that he did not know of the existence of the ETJ and had talked with the Counts who stated that there was no zoning in the area. He asked whl annex 3 1/2 miles from the existing City services. Council Member Boyd stated that the materials indicated that the site was for a proposed batch plant and Mr. Kelsey indicated that the use had been perfected, had the plant already started operation. Kreps stated that a shop had been built and the site was being E used for various purposes, but not for concrete. Permits had been applied for and materials would be delivered to the site. Council Member Boyd asked if the property were annexed, would Kreps have a problem with City zoning if the usage of the property were grandfathered. , 0 Kreps stated that he would not object if he would be allowed to use the property as he had planned for at that point. He was concerned with possible changes in the future. i The Mayor closed the public hearing. Cecile Carson, Urban Planner, stated that the 1000' strip would „ r connect to a similar annexation completed the week before. It was similar to previous annexations for potential land use control and establishment of boundaries. Neighbors in the area had asked the City to use its authority to control the land use. The Texas Alt Control Board stated that a permit had been requested for a concrete batch plant but had net been approved at that time. The State legislature had amended the regulations regarding public hearings which were not required if the property were contiguous to a state right-of-way. An I asphalt plant had been denied by the state and r,o appeals had been presented at that time. Planning and Zoning was scheduled to hear the case August 26, 1987. If a permit were granted, Carson was not sure of grandfathering the plant. Mr. Lewis of the Texas Air Control Board had told staff that the permit was requested for issuance in October but no use until April. City of Denton City Council Minutes August 25, 1987 Page 5 Dick Kelsey stated that the asphalt permit had not been denied, it had not been pursued by Kreps. He stated that they were willing to make any allowances that the City required to assure the usage of the property, Consensus of the Council was to continue with the annexation, 3. The Council considered a County's offer of sale of its Inteforma rest) in sFlow Memorial Hospital and other issues raised in the County's letter of August 17, 1987. i Council Member Gorton left the meeting. i Lloyd Harrell, City Manager, reviewed the options available to the City and the City Council as stated In the August 21, 1987 f meeting. i Council Member Alexander asked if the public had an opportunit to speak at the August 21, 1987 meeting. y Council Member Hopkins replied that there had been no public hearing on that date. Alexander stat,:d that it would be helpful to have citizen to take into account before the Council continued too far along on the Fior, Hospital issue. He outlined by the City Manager were restated tt the on asonablehconsiderin tiths alternatives the County hau g the s to evaluate the importanced ofhehaving. a It was public within the City of Denton. Every option needed tobe searched to keep Flow operational and viable as a health public in the City of Denton. He felt that prior to the election the hospital district was the most viable decision for Flow but that option did not occur. He felt that the city was making a good decision in considering the option to increase the tax rate by $.02 to keep an opportunity for the City to have flexibility in the budget process viable institution over the next several tmonths. p make Flow Flow a needed to be stabilized before anything could be done with it at all. It was important to recognize that the County also had an obligation to Flow which was significantly greater than that of the City's obligation. It was a county-wide and the county represented a significantly largerliportfon tof the tax base than did the City of Denton H appropriate that the Cit a felt of was election by giving consideration oto to the returns of the $.02 and indicating the City's willingness toe sax rate by Hospital. But the County also had to pport Flow f responsibility and seriously consider shad t recognize its ~ dJusting its tax rate i City of Denton city council minutes August 25# 1987 Page 6 with the funds necessary to provide stability for Flow. The dual ownership of Flow between the City and County had plagued plow for a number of years. No solution for Flow would ever be found that did not deal with that structural problem. It was important to respond to the County by saying that the city was willing to sit down and effectively negotiate with the County mentioned of all of the perhaps the City assuming a larger including h of the sale/transfer Flow. He was not inclined for the city of Denton to be in the hospital business. He felt the Council needed to proceed with the $.02 increase in the taxesr encourage the County to respond in kind and appoint a delegation from the council to meet with a delegation from the County to seriously look at alternatives within the next week to 10 days. IIII Mayor Stephens stated that the Council had already approved a negotiating team of the City Manager and the Mayor. Mayor Pro Tem McAdams stated that she would like to hear some remarks from the people in the audience. Her remarks were the same as on August 21, 1967 including City ownership of the 1 hospital. Council Member Hopkins was concerned that the meeting was not 4 scheduled as a public hearing and someone might misinterpret the Council asking for citizen input at that time. She stated she had not changed her opinion from the August 21, 1987 meeting. In no way did she feel the City could undertake the liability for Flow Hospital and could not vote for the option for the City to take over the Hospital. Additional concerns she felt were that if the Hospital were to remain a public ' hospital, it could not turn anyone away for health care and thus the City would be funding health care for the entire county. Since Friday she had spoken to several doctors who stated that Flow would never b:~ able to keeping going without a f patient census. She could agree to the $.02 tax increase if J she were shown that the money was doing something other than prolonging the hospital's demise 30-60 days. Council Member Boyd agreed with Council Member Hopkins that the council needed to be fiscally responsible in regards to Flow Hospital. Flow needed to succeed. The City should not accept full liability for the expense of Flow. Flow was not a valuable institution only to the City of Denton. it was a valuable institution to a number of groups in the City. The City should be willing to carry its part of the burden but the other institutions in the County should also carry their part of the burden. The City should reject the offer that the County had made. He felt that the County intended it to be r rejected. The council should explore City ownership but the City of Denton City Council Minutes August 251 1987 Page 7 City should not be full guarantor. In order for the City to own the Hospital, other institutions needed to be involved at least in a contractual way that would insure the success of Flow. The city should not be the only group involved in trying to mike Flow work. Council Member Ayer stated the number one goal was to save Flow Hospital and that the Council should go as far as it possibly could while remaining fiscally responsible. He would like to have a public hearing on Flow Hospital if the time would permit. He felt that the first step would be to initiate the process of adding the $.02 tax increase which would again express the intention of the City to provide more than its fair share to Flow Hospital. Secondly, the City should go back to the County for further negotiations. The County needed to be reminded that all of the people who lived in the City of Denton also lived in the County of Denton and paid Denton County taxes. He did not believe that the City should assume all of the fiscal responsibility for Flow but was not opposed to the idea of the City becoming the sole owner of Flow. He added that he would like to add Council Member Alexander to the negotiating team. Hopkins second the motion. Consensus of the Council was to add Council Member Alexander to the negotiating team. Mayor Stephens felt that an outstanding problem was the suit that the County had filed against the City of Denton. He felt not much could be settled in a permanent way until the litigation had been completed because it would settle the legal responsibility of each entity to the group. For immediate importance it was necessary to see how the City and the County could work together to bring about a sense of permanence of the Hospital. He would like to settle the issue of litigation first fur moral purposes and for the continuation of Flow Hospital on the short term as the City worked for the long term solution. c i Debra Drayovitch, City Attorney, stated that at the meeting of E August 18, 1987, Mayor Pro Tem McAdams asked what the City's obligation would be to people outside the City limits if the City took over the ownership of the hospital. Unless the State were to approve changes, the hospital would still have a legal obligation to serve the entire County. Mayor Pro Tem McAdams asked if the law remained the same, would the City have the ability to bill other institutions. i Drayovitch replied that the County's position was that whatever responsibility they had at the present would continue if the u City assumed full ownership. Right now the Hospital had the 6~ !AMA I I City of Denton City Council Minutes August 25, 1987 Page 8 right to bill other hospital dis~"ricts and counties for services rendered. Mayor Pro Tem McAdams stated that even if the hospital were sold, the $.02 would be put in towards Floss. A lawsuit was pending against the City based on Senate Bill 1 which suggested that the City was liable for a portion of indigent care. No money was currently budgeted for indigent care should the lawsuit find the City liable. Mayor Stephens asked the City Manager and the City Attorney to assist him in drafting a formal response to the County based on the responses given by the Council Members. Counuil Member Alexander stated the Council needed to first focus on the stabilization of Flow if for no other reason than the potential negative economic impact upon both the City and the County of the closing of Flow Hospital. Council Member Boyd stated that he felt the County realized the importance of maintaining Flow Hospital and saw the advantage of a public hospital in terms of services and fees to the residents of Denton County. He felt the City should emphasize ~Y to the County that it agreed with that and build on that premise. He felt that the formal response should state that the proposal was unacceptable. Mayor Stephens allowed members of the audience to speak to the Council regarding Flow Hospital. Pat Brewer stated that there had never been any discussions on the fact that Flow Hospital did not have to remain as it currently was. Changes could be made. In the month of July, a k profit of approximately $30,000 was made. Stability in Flow Hospital was the problem. The hospital was loosing viable services which would be difficult to retrieve in the future. s' She stated that some of her patients had made calls to their I City Council representatives and County Commissioners. Those ii people called Mr. Linton who instructed the nurses to tell their patients not to call their representatives. X` Dorothy Damico stated that she felt there was no communication among the people who want to resolve the problem of Flow. She p encouraged hasty communication among those entities responsible for Flow so that a resolution could be made for Flow. 1 Patrice Kapon stated that as of September 3 at midnight the I ` obstetric department would be closed not because of the nursing staff leaving but because of the doctors not willing to deliver I r'P indigents for free. ~ r j City of Denton City Council Minutes August 25, 1987 Page 9 Elinor Hughes urged the Council in negotiations to include all interested parties such as the Hospital Board, Hospital staff and doctors on staff. The Hospital needed to be monitored very closely even on a twice a day basis to see what was happening so as not to be lulled into believing the Hospital would wait indefinitely for something to happen. Dr. Jim Killingsworth stated that it was exceptional to see the Council's reserve in the crisis. They were not rushing into a solution without looking at all the options for the Hospital. He hoped that the Council would be empirical and look at other models of public hospitals. Bob Powell stated that he was against the hospital district but was in full support of Flow Hospital. He felt that the hospital needed to go back to the basics. The Flow Board was too large, open bidding for projects done at Flow was not followed and the Hospital was not run in a business-like f manner. He felt that political pressure needed to be applied to the County Commissioners on a county-wine basis or at least a city-wide effort to convince them to give full support to Flow. Mayor Stephens thanked everyone for their comments and stated that they would be remembered during future discussions. 1 Council Member Gorton returned to the meeting. • + ` 4. The Council held a record vote on a proposal to ` consider a tax rate increase of 11.138 above the effective tax rate. Lloyd Harrell, City Manager, stated that the vote followed the instructions given to start the process to permit the Council at a later date to establish the City tax rate at $.61 per $100 valuation rather than $.59 per $100 valuation as was contained in the proposed budget. This would give the Council flexibility later if it decided to set the rate at $.61 to budget $4000000 to allocate for the support of Flow Hospital. 1 Alexander motion, McAdams second to set the $.61 tax rate as a s ceiling which wuuld be an effective tax rase increase of 11.13%. On roll call vote. McAdams 'aye," Alexander "aYei" r Hopkins "aye," Gorton "aye," Ayer "aye#" Boyd "aye," and Mayor Stephens "aye." Motion carried unanimnu*;ly. 5. The Council set the dates for public hearings for the ' 1987-88 ad valorem tax increase. Lloyd Harrell, City Manager, stated that the suggested date would be September 81 1987 at 7:00 p.m. in the Council Chambers. i ' Council Minutes City of Denton City 1987 August 251 page 10 of the council was to set the date of September Consensus 1987. 6. The Council did not convene into the Executive Session, adjourned. no further businessr the meeting was RAY STEP- NSO MAYOR CITY OF DENTON, TEXAS i t{ JENNIBER WALTERS CITY SECRETARY CITY OF DENTON► TEXAS f a1 2736C r r,r' 1. tj 9 J ^ f Y I 4 y Y y+ 1 ~ .ir r 1. k 1 I Rr' 4r~ W 1 V ~r j« F~r Y ..r ; it 1 L ~~4 ,n i rLr ^r{ r r ~ l a , µ 12rl F } 4ay~ ~1 Yy i I r t s r. r - mne ..wu 74 1 rl r ! L • `l r P ti i WY ofDENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78200 / TELEPHONE (817) 508.8307 f Office of the City Manager M E M O R A N D U M TO: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary DATE: September 10, 1987 SUBJECT: Back-up for Agenda Item 12 i Mr. Kenneth Stout called and requested to be placed on the agenda M~ w^r4 { to discuss the tax rate vote. There is no written back-up material for this agenda item. A copy of the Guidelines for Appearance before f k.~ the City Council has been mailed to Mr. Stout. 11 y' Iiq !11 Sj~ , .1' h ✓ r S I_ v Q 2 Jenn r ters TM 2727C/2 i l a y: . V LS h ♦ f i t. w Y~ t M ~','ta I J f f~ 1. e.p ~ r MAY 4'k y1^ y. d 1~~ ISM LYIJ h {r~'v A r:. 1 f 'I' YY`.~. 1 t }i L^ i r 11 til i r CITY COUNCIL RRPORT FORMAT DATR: 09/15/87 TO: Mayor and Members of the City Council *3AS FROM: Lloyd V. Harrell, City Manager SUBJRCT: PUBLIC HKARING FOR V-39 RRCO_MMgNDATION: The Planning and Zoning Commission considered this item at its meeting of August 12, 1987 and voted 5-1 to recommend that the variances be denied and that the improvements be required and or deferred. E SUNKARY: i This is a request for the following variances of the Subdivision and Land Development Regulations: (1) Article III, 4.03 (H) (2) which requires the improvement of a 1,260 foot section of March Branch Road, and (2) Article III , 4.15 (A) which requires that n developer r make adequate provision for storm or floodwater runoff channels or basirs on property that is being developed. BACKGROUND: ! These variances are requested for a 12.05 acre tract located at the southeast corner of F.M. 1173 and Masch Branch Road. ment a church is proposed for this location. Maech Branch Roadlis shownf as a primary mayor arterial and the proposed location for Loop 288 r on the Thoroughfare Plan currently under consideration by the Land Use Planning Committee. PROGRAMS. DRPARTMgNTS OR GR?UPS AFFgCTRD: t, t j If this property is annexed into the City, the City will be responsible for the improvemtrA of the road. FISCAL IMPACT: 1p t 'tI The citizens of Denton will be responsible for the improvement of the road. t Res fully~eub ad: Prepared by: L1 V. Harrell City Manager Denise Spivey~o---- Urban Planner App'rove'd - y~/~K E ~ David Etlllson Acting Director for Planning and Development 26178 CITY COUNCIL AGENDA BACK-UP SUMMARY SHEET MEETING DATE: September 151 1987 SUBJECT: V-39. Petition of Trinity Baptist Church requesting the following variances of the City of Denton Subdivision and Land Development Regulations: Article 111, 4.03 (H) (2) which requires the improvement of an 10260 foot section of Masch Branch Road. Article III, 4.15 (A) which requires that a developer make adequate provision for storm or floodwater runoff channels or basins on property that is being developed. i SUMMARY: Variations and modifications of the requirements of the Subdivision and Land Development Regula- tions are discussed in Article I, Chapter III, which states in part that in no case shall the ; Planning and Zoning Commission grant modifica- tions unless it finds that all of the following j conditions are satisfied: f` 1. The modified proposal would conform to the City Master Plans. 2. Literal enforcement of a provision would result in an extreme hardship for the n development of the subdivision. 3. Granting of a modification will not have the effect of preventing the orderly subdivision of other land use in the area. 4. The modification accomplishes the spirit and f intent of the standard. 5. The problem in question is not generally common to other properties in the City. If i the standard in question is of general application to numerous properties through- out the City, then the Planning and Zoning Commission is prohibited from granting such variance, but should instead recommend an ordinance change to the City Council. 6. The actual pecuniary cost of development of the property shall be considered for modification of standards. 1 7. The hardship must be a physical hardship relating to the property itself as dis- tinguished from a hardship relating to { rr convenience. B. The hardship must not result from the .F applicant's or property owner's actions. vRn A r fu r'.~ A J 3 V-39 September 15, 1987 r Page 2 A memorandum from David Salmon, Assistant City Engineer, describing the cost and effect of the improvements is attached. s ACTION REQUIRED: Approve or deny variance request RECOMMENDATION: The Planning and Zoning Commission considered this item at its meeting of August 12, 1987 and voted 5-1 to recommend that the variance be denied and improvements be required, ALTERNATIVE: Approve or deny the request for variance ATTACHMENT: Reduced plat and memorandum Denise Spivey Urban Planner x f F. d ~ •p . I~ 7 . yt r 4 r t k rc E 2 , S t pie: } f 0721k ~ t err f , I , L u ar lrrl 1 010`11 I• f( ' IY 1 TI IR Y Nn ioY[ 4 N 1 w I " r 1 1 1 I Ilw\ 1 r. I 1 I 1 I I 11 \ • M.1 I 1 II I1 . p'J, 1 a Yl1 IOU jf[I [q M [r' YI 1... 1 - I LI Y « 1 'I 1 1 t +es r. [ n1= w, I M ICI 1' ✓JI 11 I PIP pip, pp- pw F,' l• ,1 n rJ i. "-d nx 14 r.~ " 1.'v+lnl l .r r. n 1. rr.n.. 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LY fwpl V lulr+w.l rd ..1..xlnt[M Y 1« INI M n.r,M tN Iw r'~ _"IOa [ ~ ~~r 1r r M M.rI.N Jr r~rl~lrlrrlw tNn11 hlrrlrM. wi L IV rYL1111 INRII Nrlx 1 ~.Y Q I [II IWIr Y• 1V NYN Mt NO M1l, Ix Y ~1Y1. -f TIIICi as • „wJ,V,I M.q Ml le Y qr nrlr M IrY1 C~ ,R. IN { Nr',e„,.F«'v.11'rrn wtr.'rr„r. I~Yr4 V Pd . ~ is rr ' kk. 0. . ~~r ~ I ~ suencr to PcrrsroY P"lol to rtNAl APPROVAL tr Crt f ~p9 r N.11 _ . . I 1 m •al ' M/tl fI L, ! LOT I BLOCK A 1' 41 M« r11Rr44.' 1 • TRINITY BAPTIST ADDITION IONIC MVIIT 01 Marl 10 TMIIT It ' tll}I l 11('00 filRlf YYII n0 ! :.It I1 1N~IM•/41n I~I:aH llbr -x .le ro+ W, IL rI VI•YL•r• 1..•rJ .r nw d «I .R rr Ye•Y. r:.l`.r lw lw+..i4ll. rw+rnl.r J. HANET SVAYEY A9. NO SIS `•[x rr. f.a 'r MYr1• Y. L'I RA'~YI .1~111^+In rrIMY.IL 1+ L _OENFON COUNTY, TEXAS iLinlii it I 1 a 1 tOl[Y/Y ~ Afl/uATn IT fYA YI V r" Ilt to I 11 Yt O" I NAIL pilot _ _ _ _._......,.....~-..~._.._.__...'•.r.n.Inw.r,WYrwrrY+rY~Mllf'~T-_ r [r Manr,ukp4,M1 4 n • a i CITY of DENTON DENTON, TEXAS 70201 i MEMORANDUM j ~ i DATE: August 7, 1987 TO: Planning and Zoning Commission FROM: David Salmon, Civil Engineer SUBJECT: V-39 PERIMETER STREET PAVING AND DRAINAGE IMPROVEMENTS VARIANCE (TRINITY BAPTIST CHURCH) The variance request has been reviewed using the eight conditions outlined in the Subdivision and Land Development Regulations. Our analysis as listed ° i below indicates that the development of this property does not meet all eight conditions neceseary'for a variance to be granted. ' I. The modifications proposed would not conform to the City of Denton Master Plan. Masch Branch Road to designated a primary major arterial on the G' County Thoroughfare Plan and on the new proposed City of Denton Thorough- fare Plan. Although this property is located outside the City of Denton's current Master Drainage Plan, it is a policy the channels associated with major flood City o to leave " ways in their natural state. The ~ channel on this property is not designated as a floodway on FEMA maps, and is subject to improvements in the fors of a concrete channel. Variances r '~"4'.f+ of the perimeter street paving or drainage Improvements would not conform to the City of Denton Master Plan, 2. Literal enforcement of the provision may or may not be an extreme hardship for the development of this property. This tract is approximately seven acres and has approximately 1,200 feet of frontage on Kasch Branch Road. The property is being proposed for church use. It is not known at this time how much drainage improvements for this property will cost. 3. Granting a variance of the perimeter street paving would prevent orderly development of the area as this particular section of Masch Branch Road ? intersects with FM 1173 which Is the proposed location of Loop 288 in this area. A variance of drainage improvements would prevent orderly eubdivl- Sion of property upstream as the existing channel is not sufficient to handle upstream development. k Planning and Zoning Commission t August 7, 1987 } Page 2 4. The intent of the perimeter street paving ordinance is to provide for improved roads in the area adjacent to the subdivision to offset the increase in traffic movements due to the development. The intent of the - drainage ordinance is to provide adequate drainage through the property to protect it from flooding as the drainage basin is developed. A waiver of these standards does not accomplish the spirit of the ordinance. 5. Unimproved roads and channels are common in and around Denton. Perimeter street paving and drainage Improvements are always required when property with these unimproved structures are platted. 6. The cost of perimeter street paving and drainage improvements may or may not be cost prohibitive for the development of this seven acre parcel for church use. T. There are no physical features on this property that would hamper j C perimeter street paving. Installing the drainage improvements would li include a great deal of excavation and fill work, but these would be no mayor obstacle. S. The decision to develop this property at this time for this particular use is the developer's own choice. At most, only two of the conditions are met for the paving variance and three 1 for the drainage variance. Sincerely, a F j' _ y r J David Salmon da • "a r 1951a t M1~i. + F r. ;i i q :y1 qS , .r . G P 6 Z Minutes August 12, lvgl Page 13 REBUTTAL: Bill Coleman, Coleman and Associates, stated that t a reason this vas brought to the city is because the county required platting when subdividing the prop- erty. He said that this property is outside the City of Denton drainage plan, he stated that this drainage im- prov*men t is b11 of the cost of the house. He said that the upstream development is where the harm has started because It was developed within the last two years with no drainage improvements. He said that the current channel has a gravel bottom with no erosion and revY well main- tained. A concrete channel would eliminate some of the trees. He said the cost of the improvements would cause a hardship for a single family residence. lie added that they are willing to dedicate a public easement. { Ms. Carson stated that the mobile home park has been in existence for approximately four to five years. She said i that the property has to be plattef because it does not exist in the original configuration shown with the county. i~ Chair declared the public hearing closed. DECISION: Mr. Kamman stated that it is a shone to ruin t:~heTrea with concrete and would like to find some way to do drainage in natural state. 4 Mr. Holt stated that item a automatically eliminates all t variances. he said that itea 7 can be looted at in terms of aesthetics because oak trees will be torn down to can- struck a channel. He said that he had no problem with k this request. He said item 2 is valid because it is an ' extreme hardship to the developer. Mr. Claiborne moved to approve Y-36. Seconded by Mr. Holt i and motion unentmously carried (6-0). n G. Y•39. Petition of Trinity Baptist Church requesting the IolTowing variances of the City of Denton Subdivision and i Land Development Regulations for a 12.05 acre tract located I at the southeast corner of FM 1173 and Masch Branch Road: • Article 111, 1.03 (2)(b) - which requires the improve- sent of a 1260 foot section of Masch Branch Road. Article 111, 1.13 (a) - which requires developers to E' ? make adequate provision for store or floodwater 1 F runoff channels or basins. Three notices were mailed to adjacent property owners; no su reply forms were received in favor, one reply form was received in opposition. STAFF REPORT: Ms. Carson stated that the petitioner 1s i~ requesting as variance of the Subdivision and Land Devel- opment Regulations for drainage and perimeter street paring improvements. She sold that variations and modifications of the requirements of the Subdivision and Land DevIlopment Regulations are discussed in Article Chopter ll, which states In part that in no case ih al1 the Planning and Zoning Commission grant modifications unless it finds that all of the following conditions are " satisfied: ! r 1. The modified proposal would conform to the city ■'atter plans. 2. Literal enforcement of a provision would result in as extreme hardship for rite development of the sub- division. y 3. Granting of a codification will not have the effect r of preventing the orderly subdivision of other land use in the area. i P 6 Z Minutes August 12, 1987 Page 14 4. The modification occomplishes the spirit and intent of the standard. S. The problem in question is not generally common to other properties in the city. If the problem standard in question is of general application to numerous properties throughout the city then the Planning and Zoning Commission is prohibited from ranting such I variance, but should instead recommene an ordinance change to the City Council. 6. The actual pecuniary cost of development of the property shall be considered for modification of j standards. 7. The hardship must be a physical hardship relating to the property itself as distinguished from a hardship i relating to convenience. . must not result from the applicants 8. The hardship ,or 4 proposed property owner's own actions. ` I She said that the thoroughfare plan for the City of Denton and the pproposed thoroughfare plan currently under consid- eration by the Land Use Planning Committee show Masch Branch Road as a primary major arterial and the proposed location of Loop 288. She said that the floodwa, informa- tion in this area is shown on the city master plan. She said that there is upstream development that will cause flooding on this property unless channeliration is done. The intent of the regulations is to require road improve- ments so there are adequate transportation facilities. The proposed use of the property s for a church so there will be sore traffic than for a residential use. She said that there Is a physical hardship in that there will have { to be excavation work. PLTITIUNER: Made Lillie, pastor, stated that all the requests Tiave been in the ETJ. He said that more and more people are purchasing land and finding out that they can- not develop as they want to and the Commission will be seeing more and more variances. He said that this is be- cause of the differences between the county and city regu- lations. He sald that the property is being considered with the property adjacent to it owned by Connie Pullen because It used to be one tract. He stated that the eight ' criteria are subjective and analysis is based on city staff perspective and not based on the perspective of the devel oiler home builder or church congregation. He said that whenwould they firstiwentetohtheDenton De- mastergpland an.+nHeearthen thatchannel velopment Review Committee they came out with the under- standing that an earthen channel and bonding would be okay. At the next meeting, Engineering changed their mind. He sold improvements costing Helsa{d0thewould pr vent the devel- opment of the pro arty. provements are otfsite improvements on property that the church does not own. He said that the property surround- ing them is agricultural and for estate lots with natural R drainage a the road is county, Hedsaid that Mr.pHill aCounty Commissioner., I L' stated that the city is requiring paving that the county does not have ■achLnery to,upkeep. He said an earthen channel would fulfill the ltandards of the ordinance. He said that this property is outside the city limits and will not be annexed soon. He said the improvements are cost prohibit.ve and is close to 1CO% of the land ac uisi- tion and building costs. He added that he does not feel that the offsite improvements are the ;esponsibility of the church. He said the recommendations Eor the resolu- tion of this variance request are: 1) that the church will be responsible for developments 'j 2) permission to do an earthen channel as designed by Burke Engineering and easement dedicated to the city, and 4 i P 4 2 Minutes August 12, 1987 Pale 15 3) variance granted for perimeter street paving and ease- went granted to the city for future expansion of MascA Branch Road. Mr. Claiborne stated that the eight criteria are estab- lished by ordinance and adopted by the city council. He added that staff may have suggested a bond for the road improvements but that the church would have to go through a variance process. IN FAVOR: None present. OPPOSED; None present. to en`comments end kECUMMENDATION: Mr. Clark stated that the church has t out the hat the staff has tried to work with the church throu - engineer,Jhlocatedcthis property as that ])avid project to w he south of 380 and this was corrected within a few days. He * notdchanged onpthenplatosincecthathtlme the comments have Mr. Claiborne asked for explanation on the platting re- quirements. Mr. Clark said that this property was sold by metes and bounds. He said that if the lend is not platted the owner is responsible for all improvements for the entire platted lot. He said that some offsite improvements are on their own land. E Mr. Elli so n stated that bondin staff has gd they could su o as a sug pp rt g on this road merely u the church that he said that left with the feeling the that ~ bond for r could ed a the i■ P the staff that thevstaffsdidtnot makeltheseedecisions. He ` said after review the staff found out that this was not an { original plat but a replat. He said that when replatting all needed Improvements are applied for the whole tract. 1 Ms, Carson stated that the staff has su church purchase all the property so tha[gimtrovementshby c' the city would not Aare to De done. She said that request does not meet the eight criteriiala and the Development Review Committee recommends den. Mr. Claiborne asked if the drainage flow is north ar south. Mr. Clark said mostly south. Mr. Claiborne asked If the drainage channel lees across property and termi- nates. Hs. Carson said that it is channelited across the ' property so that it will flow to the next. REBU77AL' Mr. Lillie stated that there was a ■isunder- stand ng about bonding. He said that they have tried to work with staff. He said that they have been looking for- word to a permanent location. He said that they turned i down some sites because the area had an overconcentratfon I of churches. He sold that he understands the Importance of consistency but sometimes the letter of law isn't al- ways the best case, he said that road improvements are planned to be constructed by the county and the road, is 1 maintained by the county.; He sold that this road will be substandard and unusable by the time it will be a four + lane divided highway. He said that this would not be a wise expenditure on the church part and need consideration on this request. Chair declared the public hearing closed. DECa IKGe in-theacitya ndtcounty roadserekessridaLhat r` maintenanca costs are greatly reduced by the city methods. 9 •'iS I P 6 2 Minutes August 12, 1987 Page 16 He said that there is a depression east of the property tilt needs to be addressed. He said that there Is justifi- cation for deferral for the perimeter street paving but he could not really fa1or either varfi,nce at this time. He said that he could comaend earthen channels be construc- ted along the easter. boundary, Mr. Claiborne moved is deny V-39 with two stipulations: 1) consideration for deferral at time of platting, and 2) that the channel improvements be constructed of earthen type rather than concrete. Seconded by Ms, Brock. Mr. Glasscock about 100,000 forconcretecanneliration and $12,000 said earthen channelization. Mr. Holt stated that someone else is going to benefit greatly from the church's money. He stated that he wondered if the area around Texas Instruments and FM1173 would maybe be in a CIP project in the future. Vote was called and notion carried (S-1). Mr. Hr'.t voted Ms. liken left the meeting, IV. COSSIDEhATIONS A. PRELIMINARY PLAT OF IHt GRUNF1ELD MOODS ALLITiUN, Section Phases an STAFF REPORT: Ms. Spivey stated that this is a 13.9 acre tract orated at the northwest corner of Farris Road and Grant Parkway that is toned planned development (PD). Sixteen SF-7 and twenty-nine SF-10 lots are proposed for development. She said that the Development Revlev Commit- tee recommends approval of the preliminary plat with the condition that ■ final plat for Phase B may not be ap- proved until adjacent property to the west has preliminary plat approval. PETITIONER- Brian Burke, Burke Engineering, stated that t ey can erotmnd the condition and agree with staff. c DECISION: Ms. Brock Loved to approve the preliminary plat o t e reenfleld hoods Addition, Section Phases A and f B. Seconded by Mr. Glasscock and notion unanimously r, carried (S-0). B. FINAL PLAT OF Tkh GREENFIELL MOODS ALLI7ION, Section I, ase STAFF REPURT; Ms. Spivey stated that this is a 5.007 acre panned development site located at the northwest corner of Farris Road and Grant Parkway. Sixteen residential (SF-7) lots are proposed for development. The Development Review Committee recommends approval. PET1710NER: Brian Burke, Burke Engineering, stated that Fe w+msTvaflable for questions. i DECISION: Mr. Glasscock moved to approve the final plat to SecdrbynMs. Broc kanddnotion ~unSection animoulsy carried~(S-0), C. PRELIMINARY PLAT OF THE gENNEDY XOVE.ADDITCON, Lot is oc . Y~ II STAFF REPORT; Ms, Spivey stated that this two acre tract i dices tt iont(6TJ) o the the east raterritorial Road o approximate- j 1 i 0923L NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; 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 WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therefore; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HERESY ORDAINS: SECTION 1. that the following competitive bids for the cons truci~on o? public works or improvements, as described in the 11B id Invitations", "Bid Proposals" or plans and specifications attached hereto are hereby accepted and approved as being the ri lowest responsible bids: ` BID NUMBER CONTRACTOR AMOUNT i ?9 80 fNSC ENViRaWFNjAt SERVICES S122100,00 9713 BITT -RCREEK CONSTRUCTION 2g•~93.04 120.775.00 X785 TRi-PRO SERVICES. ING > ~;a iII I 5 r. SECTION II. That the acceptance and approval of the above competii ve bids shall not constitute a contract between the City and the person submitting the bid for construction of such rq ..W0. S . d public works or Improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, after notification of the award of the bid. SECTION III. That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of ;he public works or improvements in "i accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION IV. That upon acceptance and approval of the above compel ttive 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 E immediately upon its passage and approval. PASSED AND APPROVED this the iS day of SEPTEMBER, 1987. W-MPHENSO MAYOR CITY OF DENTON, TEXAS Y ATTEST: 1 'v CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: { DEBRA ADAMI DRAYOVITCN9 CITY ATTORNEY CITY OF DENTON, TEXAS t ~ BY: f M ~r { 1i , k r PAGE TWO DATE: September 13, 1987 CITY COUNCIL T 10: Mayor and Members of the City Council FROM: Lloyd V. Ilarrell, City Manager SUBJECT: BID/ 9785 - REMOVAL & DISPOSAL OF ASBESTOS RECOIVENOATION: We recommend this bid be awarded to the lowest bidder meeting specit cat ons, Trl-Pro Services, Inc. In the total amount of $120,773.00. j i SUIirV1RY: This bid was not a opened until 2:00 p.m., September 14, 1987, t ere ore our recommendation and back-up was not available for normal agenda distribution. This bid Is for the removal and disposal of asbestos material and 0. Th bid Incudes the reinsulatl nrof pipe and turbinerpartss withinon0asbestos m terials. price also u ' DACKGROUqu: Tabulation Sheet PROGRAMS OEPAR11"IS OR GROUPS AFFECIEO: ~r t f ~ yr~~, y Electric Production FISCAL 111PACTt 1986187 Budget Funds for Maintenance of Power Generating rv l Equipment r Account 0 610-080-0231-8339-F.314 1 submitted: Re'spectf r \ fff/// ,a Lloy Harrell / City Manager ♦ 1 SPY. I". S 'II e ered by: Name: Tom D. Shaw, C.P.M. r ~ a i Titles Assistant'Purchasing Agent r i Approved: J1 'r ~s,'a , Sohn J. A4arshali, C.F'.'... Purchasing Agent IVA.+. *~k-4.~Mr.w ~.7/.+Trd~vdtLGW MN~}' . i. y. I * i . irr' r . I 1 i I E 111 1 1 9705 1 TRI I NERICO I METROPLEI I TECHNICAL I I 111 TITLE REMOVAL,DISPOSAL ASBESTOSI PRO I ABATEMENT I INDUSTRIES I METALS I I DPENEI 9111!07 2111 P.M. I SERVICES T CONTRACTDRS I INC, I INC. I I ACCOUIITI 611-16.1251-8339 1 INC. I INC, I 1 I I I I I I I I 1------------- E------------- i------------- I------------- i-------------I I I ITY I ITEM DESCRIPTION I VENDOR I VENDOR 1 VENDOR I VENDOR I VENDOR 1 ------------i--•----- 1 .1 I 1 1. 1 1 IRENDVAL,DISPOSAL ASBESTOS! I I I I I f' IRE-1NMTIDN 05 TURBINE 1 591911.11 1 91,161.11 1 67,168.11 1 257,539.11 1 E I I i I I I 2. • 1 l IR 6 1 TOWER MINE 1 975.11 1 1.11 1 1.11 1 882." E I 1 I I I I I 1 1 1 I 1 IREMOVAL,DIST05Al ASBESTOSI 1 I i I t i INE-IISLUTIDN 11 TURBINE 1 591901.11 1 91,161.11 1 87,168.11 1 251,612.11 1 i 11 1 (SAYS TO COMPLETE It 1 14121 1 11!12 1 11116 1 311175 1 I is I { I 3 Sr" I (DAYS TO COMPLETE 12 1 1 t 1 1 l 1 2 1 1 1 1 I i S I 3 1 ( IDAYS 10 COMPLETE 13 1 11121 1 11112 1 11116 1 311175 1 I I I i 1 1 T I 1 f I I I I i I I ACNNOMLEDOEMENT DF I I I I I I I 1 ADDENDUMS I YES 1 YES I YES I YES I I I I t I I I f I1 I I t I I 1 I' I I 1 3 I r r y DATE: September 15, 1987 CITY COUNCIL REPORT 10: Mayor and Members of the City Council i j FROM: Lloyd Y. Harrell, City Manager SUBJECT: BID# 9770 ELECTRIC METERS, CURRENT TRANSFORMERS METER SOCKETS i RECOIR•1ENDAT_ION : We recommend this bid be awarded to the lowest bidder for each section: Item 1-20 Electric transformers WESOCO Fort Forty Worth - Est. total $222,000.00 -24,000.00 1tem21-32 Current Fst. total 14,000.00 ` ltem33-37 Meter Sockets to Priester Supply - i , TOTAI. BID $260,000.00 This bid is for the annual supply of electric meters, current suPlr,+1RY: transformers, and meter sockets. The amounts are estimated and will be purchased 1 on an as needed basis. r j µ 14 ` BACKGROUND: MEMORANDUM dated 912187 " pROGp15 DEPAR111ENTS OR GROUPS AFFECTED: Electric Utility, Meter and Substations Division and Working Capital ` I FISCAL 111PACT: v Budget Funds for Working Capital Inventory 710-043-0582-8708 Electric Bond Funds Account #611-080-0253-9224 Re'spectf ly submitted: r 7, Llo Harrell :i City Manager R r M y4_ 'x Pne ared by: % ra ` ' Name: Tomb. Shaw, C.P.M. Title: Assistant Purchasing Agent Approved: 7 _ , a 1 Nan►e: Tom D. Shaw, C.P.M. ~t1.R;. Assistant Purchasinyt_ARent,.. ws _ . ar: 'i r CITY of pRNTON DENTON, TEXAS 70201 MF1 PANDUM 1p; Tom Shaw, Assistant Purchasing Agent FRCK John Gandy, Foreman, Electric Metering/Substations z DATE; September 2, 1987 SUBJECT; Bid 09770 - Electric Meters, Ourrent Transformers, Meter Sockets. We recommend items 1 thru 32, electric meters and current This bid transformers, be awarded to low bidder meeting specifications WESOO. ` with an estimated expenditure on meters ' of $222,000 and for transformers of $24,000. r We recommend items 33 th7u 37, meter sockets, be awarded to Preister s' r Supply, low bid meeting specifications. The estimated expenditure for ? one year will be $14,000. JG:vw 1RDWO90287095 r, Yf t ~i i 'Y " e v ~f ~+'t it 'A .'t w. e z ~ ' 1s ! Yr DATE: September 15, 1987 CITY COUNCIL REPORT i4 TO. Mayor and Members of the City Council FROM: Lloyd Y. Harrell, City Manager SUBJECT: Bid /9779 Power Circuit Breakers i, RECOM~IENOATION: We recommend this bid be awarded to the lowest bidder meeting specifications Shermco Industries in the total amount of $23, 350.00, FOB Denton r with delivery in 30 days. t SUMMARY: This bid is for the purchase of three large circuit breakers to be installed at the Nunicipal Power Plant. Currently they will serve as back-up spares. H \ y 1'i h. 1 a ? +h BACWOUND: Tabulation Sheet fifr r ~ PpO&qAMS OEPAP;fMENTS OR GROUPS AFFECTED: Electric Production Utility FISCAL IMPACT: 1986/87 Budget Funds Account# 610-080-0251-9213 Electric System Plant and Equipment. Respectf 11 y submitted: ell- k4 s ? Llo Y, Harrell City Manager fry "~i ;~t Prepared by' s r rat 1'a NOW, Tom D. Shaw Titis: Asst. Purchasing Agent A proved: h Name: Tom D. Shaw ~ltle Asst. Purchasing Agent ve~aKyl prvlnL,~. Yi . t J i t l 1 I I I i { I 831 I 1 1779 1 TEMPLE I FDLELINE I CUMMINS I PRIESTER I SHERMCO I BROWN I Er S.I. I GENERAL I NELSON 1 11) TITLE POWER CIRCUIT BREAKER I INC. I ELECTRIC I SUFFLY I SUFFLY I INDUSTRIES I BOVERI INC. I ELECTRIC I ELECTRIC I ELECTRIC I OPENED 0l21IB7 2181 F.M. I i I I I INC. I I I I 1 ACCOUN4 611-181-1251-9213 1 1 1 1 1 1 1 1 1 1 i I 1 I I I I i I I I------------- 1-------------I--------- 1------------- 1------------- I------...----I------------- 1--.........-.I I, I DIV 1 ITEM DESCRIPTION I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR 1 VENDOR I ....1......... I I -------------I I I------------- 1............. I I -----------•-I I 1 I 1 i I I 1 I I I 1. 1 1 ILDW VOLTAGE C. BREAKER I NIB I NIB I NIB I NIB 1 11251.81 1 ALTERNATE IRE-MANFACTRD 1 17,956.11 1 NIB I 1 I I t I I 1 I 1,588,18 I 8,581.81 t I € 1 I I I 1 1 I I I t € 24 1 _ 1 I1TE CIRCUIT BREAKER I NIB 1 111 1 111 1 NIB I 8,111.18 I ALTERNATE IRE-MANFACIRD I NIB I NIB I I I I I I I I I b,lll.ll I 9,581.11 I t I 1 I I I I I I 1 I I I 1,.. I I I I I I ALTERNATE 1 ALTERNATE !PC-MANFACTRD I NIB I NIB I 31 '1 1 ISE CIRCUIT BREAKER I Nil I NIB I NIB 1 NIB 1 11,111.11 1 21,331.11 1 27,881.18 I I I I I I 1 I I I I I I 1 11 FDB I I I I I DENTON I PLUS I I SHIP POINT I € I' I I I 1 I I I FAEIBHI I 1 1 1 I I I I 1 I I 711Ja I I 1 i 1. I, I r I 1 I t € I S € I I DELVIERY TIME I I I I 1 31 DAYS 1 11-12 OKI 1 1 12-11 WKS 1 1 I 1 I I I € I € € t 1 3 I I I t I I 1 I 1' ' C I I I S I I I 1 1 ;r ~ r ' +.FrWYiwPA~4WR'+W' Mr. yy ~ri i ,1„• 1 r 'ti , t f • k ,'f 1 DATE: Sept. 15,1987 6 CITY COUNCIL REPORT { TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Bid 19782 Printing of Parks Brochures r.ECO41ENDATION: We recomend this bid be awarded to the lowest bidder +'I meeting specifications, Webb and Associates, at a total of $24,795.00. N: V'. it 1r SUMtMRY: This bid is for the printing of brochures sent out by the Parks and Recreation Department of the City of Denton. This bid includes winter & spring, summer & fall brochures. IFr , f ° BACKGROUND: Tabulation Sheet 1 ,Y fkr` ' ,;rt'`}i. PROWARSI DEPARTMENTS OR GROUPS AFFECTED: Parks & Recreation Department I I Ie y i s iP r 1 SCAT IMPACT: Budget Account # 100-031-0062-8101 1 Respectfully submitted: J y 7. /z.~o - - V. Harrel 'CIO Cit lianager I Prepared by. Jlt 1 { ` NMI' Denise Manning Titled Buyer ~x Approved: I tl 1 1 . ter... 4 y> Name: Tom D. Shaw • Title: Asst. Purchasing Agent 1 1 f r a i i I I I I i I j Il0 I 1 9102 1 NEBB I MY I I i t DID THE PRINTINO I PARKS 1 REC i i I PAINTER I I ! I OPENED 913181 201 F.M. I ASSDEIATES I I I I 1 ACCOUMII J I ! I I I ! ~ s ! I . - - i-------------i-----...---••i-------------1--....-------1----•.--.....1 I I ~ITY I ITER DESC41FTION I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR i 1 I I I I ! I, l 35,0@I Il4BB NINTERISFRINO I 81265.18 I 4,418,18 I I i I IBROCHURES 41 PAGES I i I I I i i I 1 I 1 I I 2. ' I moth 11988 SUNMER BROCRURES 1 80265.11 1 91410111 1 1 1 I 1 HI PAGES i ! I I I I 't; l- 1 I I I t I I r 3. " 135,101 11960 FALL BROCHURES 1 81265.11 1 91418.1? 1 1 1 I i 4 1 t I 3 1 1 1 ~ I t I 1 I I I 1 I DAMS REDUIRED 1 1 14 i I I 1 I 1 I 1 I 1 I 1 .t'. 1 I 1 I I I 1 1 I 1 I I: I I I 1 I 1 t I ; k I I T I I I 1 1 1 i I I 1 a; y t IV I. t S J ` k ypyy 4 ,~'ir i` l I ~ M Y L d n. a` I F .~rf~J. art r~' 1 i C t.: . 1.1. } q 1 DATE: September 15, 1987 CITY COUNCIL REPORT x 9 TO: Mayor and Members of the City Council FROM: Lloyd Y. Harrell, City Manager SU8JECT: Bid /RFP 103 Lease/Purchase of Mail Inserting Machine i RECOIVIENDATION: We recommend this bid be awarded to the lowest bidder meeting specification for a two station mail inserting machine, Pitney Bowes. The total amount of $17,229.00 includes payments finance charges, maintenance and delivery. t SUMMITRY: This bid is for the lease/purchase of an inserting machine used in the preparation of utility bills. The lease purchase option spreads the cost over a 36 month period at a cost of $5,743.00 per year including a maintenance agreement. This also allows us to take advantage of new technology as it becomes available without mayor impact on cash flow. C rq h , f ~ i qei s), } BACKGROUND: Tabulation Sheet ~~y , ~zl e { r PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Central Stores, Utility, Customer Service 7 tF , ' yT FISCAL IMPACT: Budget Funds for working capital account for the fiscal year nfr, " y 710-043-0582-8701 x 9 Respectfully submitted: L d Y. Narre 1 City Manager u a^ Prepared by: 4w ; ~ ^ ~r Name: Tom D. Shaw j Title: Asst. Purchasing Agent Approved: t y , , U Y 4 R. Name: Tom D. Shaw ' Title: Asst. Purchasing Agent r trs A ° lA , I ~A I 1 } I i I I DID 1 PROPOSAL 1113 1 PITNEY IPELL I HONELLI I I III TITLE INSERTER MACHINE I BONES I 1 1 1 j OPENED ' 1127181 2ill P.N. I IPHILLIPSBURS I ACCOUMTI NORNINS CAPITAL I I I I _I x 1 1.._..._... ...-__..._..1 - i t ITV I ITEM DESCRIPTION 1 VENDOR I VENDOR I VENDOR I VENDOR I J ° I I a ....I I - ........1----••----- 1 1 1 1 I 1 1 IA, I I IPITNEY BONES 2 STATION t 11,517.18 I t I I i I I I I I INSERTER " 1 1, ! 1 I 1 I ' 1B, 1_ I ' IPHILLIPSBURS 2 STATION I I 12,646.11 I I IINDEAiEA 1 I tLl r 1 f I I I 1 I 2, ) I I Y,AINIENANCE 1 11141118 1 1,111.11 1 I ` 1 I I 1 1 I ' 1 I I 1 1 1 ILEASE PURCHASE I I 1 I 24 MONTHS I T,514.11 I 8,129.88 I 1 1 36 MONTHS I 5,143.11 ! 6,113.11 I I S i. I 48 NONTH9 I 4,145.11 ! 4,443.ee 1 1 1 I. I 61 MONTHS 4 4,596111 I 4,314.81 I 1 1 1 = I I 1 `::I I I I 1 I I 1 1 I I I I ' n M ~l n, t 1 Y ~1 al s t.;v , , i {y r ~1 a 'tit n . i n i fir, t/IJ y 1 AEI .1~ ` 1 ~ 0913L 6 NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN j 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 WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therefore; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DEN':ON HEREBY ORDAINS: SECTION I. That the following competitive bids for the construction o public works or improvements, as described in the "Bid Invitations", "Sid Proposals" or plans and specifications attached hereto are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT i 97$0 _F.NSC'O ENVIRONMENTAL SFRVI - S 9122.800.00 ~ 9783 BITTERCREEK CONSTR I .TION 28,493.90 9785 p' ; r ii SECTION 11. That the acceptance and approval of the above E a.' coin eiT-t;ve bids shalt not constitute a contract between the City and the person submitting the bid for construction of such P( ~ . r+ public works or improvements herein accepted and approved, until such person shall comply with all requirements: spa^ified in the contract oandidfurnishingu of gperformanceyand epaynent bonds,wrafter notification of the award of the bid. SECTION III. That the City Manager is hereby authorized to execute a necessary written contracts for the performance of I the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, ' standards, quantities and specified sums contained therein. SECTION IV. That upon acceptance and approval of the above works t and eimprovements h as execution of herein, the o Citye public hereby authorizes the expenditure of funds in the aman authorized the amount as specified in such approved bids contracts executed pursuant thereto. i, SECTION V. That this ordinance shall become effective imme ate y upon its passage and approval. PASSED AND APPROVED this the 15 day of SEPTEMBER, 1987. " RAY STRPTIENS, MAYOR' CITY OF DENTON, TEXAS j i{ ply ! ATTEST: f (Y ",I jr, W, CITf SECRETARY 9 s. CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS rw ~a " BY: i § - 17 PAGE TWO i i DATE: September 15, 1987 CITY COUNCIL REPORT TO. Mayor and Members of the City Council FROM: Lloyd Y. Harrell, City Manager SUBJECT: Bid 19780 Disposal of PCB Soil meeting We recommend this bid be awarded to the lowest bidder requirements, Ensco Environmental RECo1R1`NOATION• . surance requirements end delivery specifications, in services in the srmount of $122,800.00. ,F . y 400 cubic yards of PCB disposal of approximately SUMMARY: This b31 is for the ~ ll be taken from the Municipal Power Plant storage contained soil. This soil wi yard. It was contaminated by leaking capacitors that contained PCB. s y s is 4 r „ BACK &(XJgD: Tabulation Sheet memo from Joe Cherri Electrical Engineer ' Electric Uti)ity j PROGRAMS OEPART EATS CR GROUPS AFFECTED: FISCAL IMPACT: 1986/87 Funds Account Number 610-08C-0252-8338 Maintenance , d of Cverhead Distribution , <r~ r14Respectfully submitted: ' t ~ rr Lloyd Y. Harrell i~ City Manager rtr~E'~ P ared by: N \ "lame: Tom B. Shaw a.~ T1Asst. Purchasing Agent, A proved: Shaw r Nome: Tom D. Y Y ` Asst. Purchasing Agent, j -1" t + x t 1. i y 1 Q CITY of DENTON DENTON, TEXAS 70401 MEMORANDUM Tom Shaw, Assistant Purchasing Agent From: ,Joe Cherri, Electrical Engineer if Date: September 2, 1987 ' :;ubiect: DISPOSAL OF PC8 SOIL UNDER BID x 9780 yr r`f i fhe Ut.iliticy atnff recommends acceptance of the bid pr.:I,1,su1 from , Ensco Environmental Services, Inc., P.O. Box 987-1100 Commercial L.Ive, Pact.,tllen , LA' 10767. under the assumption that more than rF 200 cubic yards will be disposed off. Enaco was selected because ,I of t+lgh Insurance- covern;r_ and legs shipment tame, ( tFp rllese are the names and breakdown. :osts of the bidders: rime +'o!atIit1 170gt1:51 i . Bidders Da es 200 C. 1'. 400 - - - - - - - - - - - - - - - - - - - - - - - - - - - Ensco Environmental Services, Inc. 15 GI4011 122800 S ItIbe}'t 20 79997 133.1.14 National Electric 30 81100 122200 Chem ljnl Waste Management r, c - ~ 1 8,. 130 I27110 Ameveco 30 74000 117000 Ii 14,ono •,tl Electric 6 1G09 1).F.W I21795 r r;:'` S 14700 149400 * National Electric did include insurance coverage. In allliition, 30 „43 dare for shipment, e $ .rti 1 '4 }s d1G"~i ^:Y~";: q 8i , e. r1 ,`t: . ,y I:~- ~0. , a4n.Ntt:1Yr'13}1y1,^L1L'~,~'T'4.~' i Ndddffi~,4. DATE: September 13, 1987 CITY COUNCIL REPORT 10: Mayor and Members of the City Council FROM., Lloyd V. Harrell, City Manager SUBJECT: BID/ 9783 - EVERS PARK AND HERCULES ST SIDEWALKS i RECOMI.IENVATION: We recommend this bid be awarded to the lowest bldder meeting specifications, zlttercr,:ek Construction Co. In the total amount of $28,493.00. This Is for Alternate A, B, C, D combination. SLIRVIRY: This bid Is for the histallatlon of sidewalks and ramps along the North and South sides of Evers Park and also along the south side of Hercules Street. The bid j Involves approximately 1293' of sideway,, and associated ramps, curbs and driveways. i BACKGROUND: Tabulation sheet i Al LR0q11AMSg DEPARTMENIS OR GROUPS AFFECTED: 1987 C.I.P. Sidewalks ht. i FISCAL 111PACT: 1986187 Budget Funds for Capital Improvement Projects Account # 436-020-G087-9103 Re'spe lly submitted: _ v . 4" o yd V. Harrell e City flanager Pfqared by: as` ~ 1 r. aSs ~ t.: ~ ~ s (iOmet Tom D. Shaw, C.P.M. Titles Assistant Purchasing Agent A roved: w H444. Tom D. Shaw, C.P.M. I)P1 Assisto,ct Purchasing Agent . Y.RJ~ ..:.,<...drn P.+.,.... ♦ wn..f.rp:akrR'f/tier j . :i 1 r I I I I I I 1 I DID I 1 9783 ! WALT I CALYERT I DICXERSON I ADCON I IITTERCREEK I Ill-NIK I I III TITLE 1011 }TIMES 1111111.111 11LUAM5 1 111111 1CONSIRUCTION 1 111111 11111TRUCTION 1 INC. 1 I OFENEI 9111117 2111 P.M. 1CONSiRUCTION I I CO. ! INC. I I I I ACCOUNTI 43h-129-6081-1718-4113 I I I i I i I I .137.-121-6081.8719-9115 I I I I 1 I I I 1-11•......... I............. I............. I............. I............. 1----- •I. -i III 8~1 ITV I 1TEA DESCRIPTION I VENDOR s VENDOR I VENDOR I VENDOR I VENDOR I VENDOR 1 VENDOR I •.«1.....• 1 . ....-•I............. I............. 1............. 1............. 1------------- 1•............! 1. I.•1 I~ IlOA 1I111= 11 I ININDIOR OR FADM LOCUST 111 91422.25 1 71435.11 1 51943.75 1 51941.11 1 $1537.51 1 71351.SO I ; I (NEST 30 ITATION 1+11 1 1 1 1 1 I I I 1 I 1 I I I I I 1 1 2. 1 IALTERNAIE 110 A 1 1,994.61 1 71115.11 1 51279.11 1 51651.41 1 41599.51 1 61921.11 1 I I ! 1 1 i I I l 3. l 1111 1• EVERS 1 91138.11 1 71365.11 1 41717.5/ 1 61134.11 1 51367.11 1 61917.51 1 ! 1 1. t S I I I I i f 1 4. I MID C• UINDSOR 10 EVERT 1 51331.58 1 41125.11 1 31162.51 1 31288.11 1 39187.51 1 11637.51 1 I ) I I I I I a 3. I 1111 1• NEACULEI It 1 25,913.61 1 21,424.11 1 21,621.11 1 111536.14 1 15,419.11 1 24,516.11 1 I I I I I ! ! I ~ ~ ~ 1 6, t . 1111 E• ALT A111C11 I 1 39,119.11 1 341671.11 1 33051"1 1 28,493.0 1 42,992.11 1 1 i E I I 59,419.961 1 1 1 1 { ! t 1 1 or 111 A181C11 1 1 39,149.11 1 35,334.95 1 1 1 f I I I 1 I ! 1 I 811 BOND ! YES I YES I YES I YES I YES I YES I I I I I l I I I I i I I I I t I I ! ! I I ! I ! 1 I I t t t t i, I I I t 1 I I 1 t • r ' t . V x DATE: September 13, 1')87 CITY COUNCIL REPORT i TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: BIDR 9793 REMOVAL & DISPOSAL OF ASBESTOS REC011E1110ATION: NO BACKUP AVAILABLE AT THIS TIME. BID OPENS MONDAY, SEPTEMBER 149 1987 I AT 2100 P.M. INFORMATION WILL BE SUPPLIED AS SOON AS IT 15 PREPARED. i SUMMITRY: ,1. BACKGROUND: x jl Ilx F ~V 11 . ~ PROGRAMS. DEPAR71VAIS OR GROUPS AFFECTED: 5 ~ FISCAL IIIPACT: ! 11 1 Respectful y submitted: Llo . Harrel City Manager H ,xl { IEI '5l 1 'x "a red by: «i r A I.1 _ fi NameI Tom D. Shaw, C.P.M. Title: Assistant Purchasing Agent , A provedt , .I a @ ✓y, f Name, Tom D. Shaw, C.P,M, . ;,,Y Y 1e1. Assistant Purchasing Agent p .'r W~.I 1 _ ,y.u. ,o x.'.t.N34 .,dGJ.aY'.Il~~ f I r 1 DATE: 09/15/87 CITY COUNCIL REPORT FORMAT TO: Mayor and members of the City Council 1 FROM: Lloyd Harrell, City Manager SUBJECT: rONSIDER ADOPTION OF AN ORDINANCE AND SERVICE PLAN INSTITUTING ANNEXATION OF A 9.2151 ACRE TRACT BEING PART OF THE J. EARLY SURVEY, ABSTRACT NO. 12791 AND THE MOREAU FORREST SURVEYr ABSTRACT NO. /17p AND BEING LOCATED AT THE NORTHEAST CORNER OF MIEGO ROAD AND NORTH COOPER CIEEK ROAD. (A-47) RECOMMENDATION: } The Planning and Zoning Commission recommended approval on ( August 26r 1987. I SUMMARYr A voluntary request for annexation has been submitted by the ownero Donald R. Curtiss The purpose for annexation is to permit the development of the property and a zoning request and preliminary plat have been submitted. The request also includes Cooper Creek Road, Mingo Road and the T i P Railroad. BACKGROUND: . 'y ,S The property is vacant at this time, Safety Kleen and the Green ss"' Giant distribution center are located to the south and the Cooper rr Creek Baptist Church is located west. A sanitary sewer line is located in North Cooper Creek Road. PROGRAMSO DEPARTHxWS, OR GROUPS AFFECTED: All departments involvad in the development process and the land owner. j FISCAL IMPACT.: I i City services would be extended to the property, if annexed, but because of the existing City facilities and no existing structures on the property the impact should be minimal. The maintenance cost for Mingo Road would also be mintmale r Respec lly submi t d: ffh Prrepare/d b~y+: oy al CAC' COiho~~ Cit Manager Cecile Carson Urban Planner Approved: David Ellison Acting Director for Planning r; and Development H 2389g n r ~pA..r., r.ar•. . . . ern-. ,r. i..,,_a .>.i ...i:d%•.!MSAAi•rW , r. t J.881L NO. AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 9.2154 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE J, EARLY SURVEY, ABSTRACT NO. 1279 AND PART OF THE MOREAU FORREST SURVEY, ABSTRACT NO. 417, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL 'A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. WHEREAS,*A,# a request for annexation for the property described in Exhibit a copy of which is attached hereto and incorpo- rated by reference herein, was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Denton; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the day of , 1987 in the Council chambers for air interested person to snaFe their views f and present evidence bearing up~.n the annexation provided by this ordinance; and for that purpose an opportunity w,-. ~s afforded, at a public hearing held purpose on the tS day of _ 1987 in the council Chambers for air interested personsgto state their view and resent s p evidence beating upon the annexation provided by this ordinance; and WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, Texas, prior to its effective date, and after the public hearings; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the tract of land described in said Exhibit "A" be, and the same is hereby annexed to the City of Denton, Texas, and the same is made hereby a part of said City and the land and the present and future inhabitants thereof shall be entitled to all the rights and privileges of other citizens of said City and shall be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its I prorata part of the taxes levied by the City, SECTION ii, The property described in Exhibit "A" is Fereby classified as Agricultural "A" District and shall so appear on the official zoning map of the city of Denton, Texas, which map is j hereby amended accordingly. I SECTION III, Should any section or part of this ordinance be ! held uncons tutional, illegal or invalid, or the application thereof ineffective or inapplicable as to any territory, such unconstitutiona?ity, illegality, invalidity or ineffectiveness of i A-47/PAGE ONE I such section or shall portions thereof affect, but asp for suchi remaining the remaining portion portion or portions, the same shall be and remain in full force an effect; and of the area ordinance for thesCityeofnDenton, such to any p ineffectiveness of this ordinance as to any such part or parts of any such area shall not affect the effectiveness of this ordinance as to all of the remainder of such area, and the City Council here- by declares it to be its purpose to annex to the City of Denton every part of the area described in said Exhibit "A" of this ardi• nance, regardless of whether any other part of such described area Provided, further, that ' is hereby effectively annexed to the City. if there is included within the general description of territory set out in Section I of this Ordinance to be hereby annexed of and City of Denton any lands or area which are presently pxed included within the limits of the City of Denton, or which are Town presently art or Villa of or which are within wthe ithinmthe oCityy fthDenton's Town or g jurisdiction to annex, the same is hereby excluded and excepted Erom the territory to be hereby annexed as fully as if such {excluded and excepted area were expressly described herein. SECTION IV. This ordinance shall be effective immediately t upon is passage. < ; ! Introduced before the City Council on the day of 1987. ti PASSED AND APPROVED by the City Council on the day of A , 1987. I RAY STEPHEN9! MAYO F ATTEST: , APPROVED AS TO LEGAL FORM: DEBRA ADAM DRAYOVITCN, CITY ATTORNEY BY: Lzi~ 's A-47/PAGE TWO 'k~ .n:n.,JYh dpi I i LN .X040 I EXHIBIT "A" ALL that certain lnt, tract or parcel of land lying and being situated in the County of Denton, State of Texas, and being part of the J. Early survey, Abst. No. 1279, and part of the Moreau Forrest survey, Abst. No. 417, and also being part of a tract of land as conveyed from D, 0. Jones and Shirley Jean Jones Catter to Dan Christie, Don Curtis, and Bob Houser by deed dated March 13, 1985 and recorded in Volum.- : "24, Page 84 of the Deed Records of I Denton County, Texas, and more particularly described as follows: BEGINNING at a point lying in the present city limits, said present city limits established by Ordinance N-1. 65-43, Tract 1, said point also lying in the south right-of-way line of the Texas 6 Pacific Railroad, and the west boundary line of said M. Forrest survey, same being the east boundary line of said J. Early survey; THENCE. North along said present city limits and said survey lines, pa, sing at 53.90 feet, more or less, the centerline of said T. 6 P, R. R. continuing for a total distance of 107.80 feet to a point lying in the north right-of-way line of said T. 6 P. R. R., same being the south right - of -way l ine of a northeast - southwest public road known as Mingo Road for corner; THENCE north 00 21117" east along the east boundary line of said J. Early survey, same being the west boundary line of said M. Forrest survey, passing at 64.85 feet the north right-of-way line of said Mingo Road, continuing and along the centerline of a north-south public road known as Cooper Creek Road, a distance of f 185.87 feet to an iron pin, same being the northwest corner of said M. Forrest survey , said point also lying at an ell corner of said Cooper Creek Road THENCE north 890 15' 12" east along the north boundary line of I said M. Forrest survey, same being the centerline of the east-west portion of said Cooper Creek Road, passing the intersection of the centerline of said Cooper Creek Road and the centerline of an east-west county road, continuing and along the centerline of said county road a distance of S75.1 feet to an iron pin for corner; THENCE south 20 26' east, passing at 19.83 feet the northeast ! corner of said tract, same being a fence corner post, continuing E along the northerly east boundary line of said tract, a total eiseCance of 160.55 feet to the easterly southeast corner of said + THENCE south 730 S8' SS" west along the northerly southeast boundary line of said tract, a distance of 160,94 feet to an inner ell corner of said tract; f A-47 i i I I . i i E THENCE south 020 35' 35" east along the westerly east boundary line of said tract a distance of 144.03 feet to the westerly southeast corner of said tract, same being the north right-of- line of said Mingo Road; way THENCE south 210 56' 12" east, pass'r)g at 60.0 feet the south i right-of-way line of said Mingo Road, same being the North right- of-way line of said T. 4 P. R. R., passing at 110,0 feet the centerline of said railroad, continuing for a total distance of t 160.0 feet to a point lying in the sout;. right-of-way ling of said railroad for corner; THENCE south 680 03' 48" west along the south right-of-way line of said T. & P. R. R., a distance of 546.67 feet to the Place of J r e Beginning and containing 9,2154 acres of land, more or less. , I, f All t ` W ' F i~ J 4 y~ I w , 1 i SSA a '.1 ' , 1 1 J f` ~r 1. 1. y~ y# , t A-47 , r ( a `a1 A PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON. TEXAS 1. Basic Service Plan A. Police Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation. B. Fire Fire protection by the present personnel and equipment of the fire fighting force, will be provided on the effective date of annexation. C. Water/Wastewater Maintenance of public water and wastewater facilities will ' begin within sixty (6U) days after the effective date of the annexation for ail facilities required to be maintained by the City of Denton, D. Refuse Collection The same regular refuse collection service now provided , k within the City will be extended to the annexed area within sixty (6U) days after the effective date of annexation, }a E. Streets ~w 1. Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.), will begin on the effective date of annexation. 1. Routine maintenance on the same basis as In the ptasent f City, will begin in the annexed area on the effective data of annexation. 3. Reconstruction and resurfacing of streets, installation of storm drainage facilities, construction of curbs and gutters, ai.d other such major improvements, as the need therefore Is determined by the governing body, will be accomplished under the established policies of the City. 4. Traffic siggnals, traffic signs, street markings, and other traffi control devices will be installed as the need therefore is established by appropriate study and traffic standards. P, Inspection Services r Any inspection services now provided by the City (building, electrical, plumbing gas, housing, sanitation, etc.) will begin in U. annexation area on the effective date of { annexation. a • a i I Service Plan Annexed Area Page,. 2 i i G. Planning and Zoning The planning and zoning jurisdiction of the City will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area and a zoning designation for the property will be established. H. Street Lighting Street lighting will be installed In the substantially deveioped areas in accordance witn the established policies of the City. 1. Recreation }3, Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effective date of annexation. The same standards and policies now used in the present city will be followed, in expanding the recreational program and facilities in the enlarged City. J. Electric Distribution The City recommends the use of City of Denton for new } electric power. h. F,ascellaneous Street name signs where needed will be installed within approximately six l61 months after the eftective date of annexation, { 11. Capital Improvemeats Program (CIP) The CIP of the City is prioritized by such policy guidelines as: tr` A. Demand for services as coo pored to other areas based j partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and nntural or technical re- straints or opportunities. y I B. f , ,f Impact on the balanced growth policy of the city. i 1AI f3 C. Impact on overall City economics, The annexed area will be considered for CIP iu the upcoming CIP plan, The annexation area will be judged according to the same established criteria as all other areas of the City. . I.Yi r i li I I S-64 . I ` PO'18~ L l w, T • i ~ ~ {IN I` 4• G rr rr J••r•~• ,~1 ♦ ` r PO-64 q C!. f ~ a° cy S.5 ; SF-10 I S•126 P4.73 34 1 ANNhXA'11UN SCN6DULE A-47 August 04, 1987 City Council sets date, time and place for public hearings ✓ August 07, 1987 Notice ublished in Denton Record Chronic~e for first public hearing August 1^, 1987 Notice published in Denton Record Chronicle for secoi.d public hearing v August 18, 1987 City Council - first public hearing " August ZS, 1987': City Council - second public hearing ,r August 26, 1987 Planning and Zoning Commission males recoe,mendatian j a 4< X " September 15, 1987 City Council institutes annexation September 16, i4j87 Publication of ordinance in Denton Kecurd Lbronicie October !U, ib87 final action by City Council , Y w i t5 v' Q I r ,I I e ~a F, % rn 1 4 rj " r. ,.F i P 8 2 Minutes August 26, 1987 Page 2 AECOMMLNDA7IONI Ms. Carson stated that the staff recoe- menok es appprove of 2-lbb7. She added that the staff has spn witA fir. Nowell a id Mr. Tucker about rear access to the single famlly and this would be discussed during the plattin stages In an O teappt to Wilt the curb cuts on Montecito Drive and HI kory Lreek koad. As. Brock asked it the rear access could be a require. Milt , Ns. Carson said that conditions cannot be attached to the toning request but staff could negotiate during platting. Ms. Aiker asked if the single famlly land use would in. crease traffic aOn leasley Lan. Ms, Carson stated that fg family h has a t owe traffic generation than multi. Y or general retail. She uId that single family gene tes approximately lU vehicle trips per residence per i day arnd nultl•Eam Y gene rtes S to lu flees the amount of single family , I Ms. Brock asked if there is concern about the large con. centratlon of single family-7. Ms, Carson stated that tnis area is more appropriate for single family•7 than any larger tot single family use. She s■ d less square foot- age 1n the lots would require a planned development, She Bald that additional Zoning in this low intensity area will be reviewed to insure diversity. 'a II khbUl'fAL: None ortered. Chair declared the public hearing closed, i+ DECISION: Mr. Glasscock moved to recommend approval of l I -TT"-. Seconded by Ms. Cole and motion unanimously f carried (7.0), i ' i B. PkfLlMlhAkY AEU FINAL kEPLAI OF ALL OF LUT 1 AND pAk] OF STO F REPOkT: Ms. Carson stated that this u.7 acre tract j ' Tf 1ec. M at the turner of university Drive (U.S. Highway 3801 and Bolivar Street and is toned commercial (C), A ' cash booth addition to the McUonald's kestaur nt is pro. posed for the site. No Public Improvements will be needed ■t this time. She addea that the Development kevlew Com- i'- eittee recommends apprtvsl. r` Mr. Holt asked why the property had to be replatted. F Ms. Carson stated that the current configuration is it, two lots and the property was sold off by metes and bounds. She said that r•fore a building permit can be y issued the lot has to be replotted Into one lot. S IN FAYOk: None present. DYVUSED: None present. ` Chair declared the public hearing closed. pDECISIUN: Ms. Cole moved to recommend approval of the Lot 1 e nary ck a 5 and of final part of tha Fry Addition. Seconded and I and mom b lonounanimously carried (7-U). Y Ms. brock ' r IIt. CUNSIDLRAT1UhS A. A_87. Pa ti tion of Donald R. Curets and City of Denton for pj- t annoxst(on of a 9,2151 acra tract of land being part of the J, barIy survey , Abstract No. 1179, and the Moreau t a'' Forrest Surrey, Abstract too. 117 d AA d being located at the northeast corner of Mingo Road and north Cooper Creek Aoad.' S i Y iC I ~ ~ 1 Y { 2 Minutes August 20, lYg7 Page S S1AFF REPUk7. Ms, Carson stated that this is a voluntary request or annexation by owner, 'onald k. volun purpose for annexation is Curtis. to permit the development oIhe f the property and a toning request has been submitted. The request also includes CdopeA Creek Road, Mingo koad and the T ! P Railroad, the property is vacant e center . afety lleen and the Green Giant distribution S center ate loc+red to the soutn and the Cooper Creek Baptt ist this west. The staff recommends approval of the annexation. i P111" UnERt Brian Burke, Burke Englneerin the owner wants the annexation and added the hetl5 oYRIL- able for questions. UECISIOhr Ms. Brock moves to recommend approval of A•47, secon a by Mr. Glasscock, and motion unanimously carried (7-0). B. A-SU. petition car city of Denton for annexatlon of a k IT 3v57 acre tract -.f land being part of the J. Ayers Survey, Abstract ho. and part of the B. Burleson j Survey, Abstract ho. n5, and being located west of I-SS and north of intersection of Rector Road. t STAFF kEPOk7t Ms. Carson stated that the Me to o a proposed batch plant and if the property is an- hexed, it would be consistent with the city's policy to protect the City's interest in devoid ant. 'The land is being used by the contractor for the State Highway Depart- ° f' ment as a maintenance use are lan yard. control, aesthe ti cquality, teand~rotation rto t he land Y. The land use would be in conflict With the 0 htdu Development Guide. In order to meet the 1,000 foot s rip togtheenorthooftthesproposedlkecttr71Subdivisionlhas o art teeny 'i Ineluded. She added teat this would more clearly define the boundary betwe he City 4tf en the Cltv of Sanger and t Denton. She said that staff recommends approval of the annexation. DELiSJOht Ms. Cole moved to recommend approval of A-So, secd:. a by Hs. Brock, and notion unanimousiy carried C. ELECTION Ok CHAIRPERSON AND VILE-LHA WEkSON of Planning and on ng omm ss on Mr. Claiborne vacated the chair, t Ms. kvans took Chair and called for nominations for Chairman, { j Mr. Holt nominated bill Claiborne for Chairman of the Planning and Zoning Commission. Seconded by Mr, 1lamman, Mr. Glasscock moved that the nominations cease and ° Mr. Claiborne be re elected as Chairman of the planning and zoning Commission. f Vote WAS called and motion carried (6•u), Mr. Claiborne took chair and called for nominations for V1ce•Choirisen. r ~ .y Mr. Holt nominated Eullne Brock for Vice-Chairman of the f Planning and Zoning Commission, Seconded by Ms, Cole. Mr, Glasscock moved that the nominations cease and that Ms. Brock be elected as VIce-Chairman of the Planning and Zoning Commission. a, DATE: 09/15/87 CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council i FROM: Lloyd V. Harrell, City Manager R j SUBJECT: CONSIDER ADOPTION OF AN ORDINANCE AND SERVICE PLAN INSTITUTING ANNEXATION OF 24.39 ACRES LOCATED IN THE B. BURLESON SURVEY NO. 65 t AND THE J. AYERS SURVEY NO. 2 AND SITUATED WEST OF I-35 AT AND NORTH j OF THE INTERSECTION OF RECTOR ROAD. (A-50) RECOMMENDATION: r The Planning and Zoning Commission recommended approval on August 26, 1987. SUMMARY: E The property is the site of a proposed batch plant. If the property is annexed, it would be consistent with our policy to protect the City's interest in development. BACKGROUND: The property is removed by a considerable distance from an urbanized area o: the City, Water and sewer lines are currently not antici- pated to be extended until 2000 by the City of Denton. The land is d being used by the contractor for the State Highway Department as a '*f maiistenance yard. The major concerns are land use control, aesthetic Ef quality, and relation to the community. The land use would be in conflict with the Denton Development Guide. f PROGRAMS, DEPARTMENTS OR GROUPS AFFECTEDs " a All departments Involved in the development process# the land owner, and developer. + FISCAL IMPACT: At this time, fire protection would be the main concern. A building has been constructed that would require City cervices. { Reapeclly submit e / 0 < Prepared byt L oy(V Arrell (n' City Manager Cecile Carson Urban Planner 4t APprovedt David Ellison alr- Actin~ Director for Planning and Development 23929 j L f 1872L NO. AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON# TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 24.3957 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE J. AYERS SURVEY, ABSTRACT NO. 2 AND PART OF THE B. SURLESON SURVEY, ABSTRACT NO. 65, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL 'A' DISTRICT PROPERTY] AND DECLARING AN EFFECTIVE DATE. WHEREAS," a request for annexation for the property described in Exhibit A , a copy of which is attached hereto and incorpo- rated by reference herein, was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of % the City of Dentont and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the i8 day of 1987 in the Council Chambers for a11Tte rested persons'-to state their views ' and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the day of , 1987 in the Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, Texas, y°s.• prior to its effective date, and after the public hearingst NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; y_RCTI_ ON 14 That the tract of land described in said Exhibit "A" be, and the same is hereby annexed to the City of Denton, Texas, and the same is made hereby a part of said City and the land and the s present and future inhabitants thereof shall be entitled to all E the rights and privileges of other citizens of said City and shall fat: ~ ,e A-50/PACE ONE .3 be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its prorata part of the taxes levied by the City. SECTION II. The property described in Exhibit "A" is hereby classified as Agricultural "A" District and shall so appear on the official ton- ing map of the City of Denton, Texas, which map is hereby amended j .V accordingly. SECTION III. Should any section or part of this ordinance be held unconsti- tutional illegal or invalid, or the application thereof ineffec- tive or Inapplicable as to any territory, such unconstitutionality, ` illegality, invalidity or ineffectiveness of such section or part ' shall in no wise affect, impair or invalidate the remaining portion or portions thereof, but as to such remaining portion or portions, the same shall be and remain in full force and effect; and should this ordinance for any reason be ineffective as to any part of the area hereby annexed to the City of Denton, such ineffectiveness of this ordinance as to any such part or parts of any such area shall not affect the effectiveness of this ordinance as to all of the remainder of such area, and the City Council hereby declares it to be its purpose to annex to the City of Denton every part of the area described in said Exhibit "A" of this ordinance, regardless of whether any other part of such described area is hereby effec- tively annexed to the City. Provided, further, that if there is included within the general description of territory set out in Section I of this Ordinance to be hereby annexed to the City of Denton any lands or area which are presently part of and included within the limits of the City of Denton or which are presently part of and included within the limits of any other City, Town or or which are not within the City jurisdiction Village, of Denton's ' to annex, the same is hereby excluded and excepted from the y territory to be hereby annexed as fully as if such excluded and excepted area were expressly described herein. SECTION IV. This ordinance shall be effective immediately upon its passage. i Introduced before the City Council on the day of , 1987. i {4I ry I i A-50/PAGE TWO r: I `i i PASSED AND APPROVED by the City Council on the day of 1987. ,i RAY STEPHENS, MAYOR i s i ~y ATTEST: JENNIFER AS TO LEGAL FORM:; y s I DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY L i"n IMH~ I If l fae i r.. 'ti w ~ o, t ` I A 1 $ M. I A•SO/PAGE THREE k' q 5 4 I EXHIBIT "A" ALL that certain lot, tract or parcel of land lying and being situated in the County of Denton, State of Texas and being part of a tract of land as conveyed from S.R. Rector, et ux to S.D. Rector by deed recorded in Volume 247, Page 41 part f of the Records of Denton County, Texas, and also being Ayers Survey, Abstract No. 21 and part of the B. Burleson Survey, Abstract No. bS, and more fully described as f:,ilows: BEGINNING at a point in the present city limits as established in the tract described in Ordinance No. 87-141, said point lying 250,0 feet west of and perpendicular to the centerline of IH 35, said point also lying in the centerline of an east-west county road known as Rector Road; THENCE south 820 OU' 00" west along said centerline of Rector Road a distance of 1033.5b feet to a nail for corner; THENCh north 070 28' 00" west passing at 4U.0 feet an iron rod lying in the north right-of-way line of said Rector Road, ,L passing at 150.0 feet, more or less, the north boundary line of said J. Ayers survey, same being the south boundary line of I said B. Burleson survey and continuing for a total distance of 020.68 feet to an iron rod for corner; THENCE north 060 west a distance of 379,35 feet to a point for a corner, said point lying 1000.0 feet north of and perpendicular to the centerline of said Rector Road; THENCE north 820 east IUUU.U feet north of and parallel to the centerline of said Rector Road a distance of 1093.96 feet to a point for corner lying in the present city limits, said point also lying 250,0 feet west of and perpendicular to said centerline of said IH 3S; THENCE south 40 12' 54" east (by ordinance south 20 SO' the a latecontinuing of Beginning total and east) distance along of Lh1002.19 present city y to limits containing 24.3957 acres of land, more or less. I FI Y I ? Ii A-So I PLAN OF SERVICE FOR ANNfiXED AREA, CITY OF DLNTON, MAS 1. Basic Service Plan A. Police Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation. B. Fire Fire protection by the present personnel and equipment of the fire fighting force, will be provided on the effective date of annexation. C. Water/Wastewater Maintenance of public water and wastewater facilities will begin within sixty (6U) days after the effective date of the annexation for all facilities required to be maintained € by the City of Demon. i D. Refuse Collection k The same regular refuse collection service now provider within the City will be extended to the annexed area within sixty (6u) days after the effective date of annexation. E. Streets 1. Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.), will begin on the effective date of annexation. 2, Routine maintenance on the same basis as in the present E ,t City, will begin in the annexed area on the effective date of annexation. .t 3. Reconstruction ana resurfacing of streets, installation ter'," of storm drainage facilities, construction of curbs and R" gutters, and other such major improvements, as the need therefore is determined by the governing body, will be ;i,•A accomplished under the established policies of the City. 4. Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and • traffic standards, F. Inspection Services a Any inspection services now provided by the City (building, electrical, plumbing gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. t 1 Service Plan { Annexed Area Page Z G. Planning and Zoning The planning and zoning jurisdiction of the City will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area and a zoning designation for the property will be established. H. Street Lighting Street lighting will be installed in the substantially developed areas in accordance with the established policies of the City. 1. kecreation Residents of the annexed area may use all exis.ting recreational facilities, parks, etc., on the effective r date of annexation. the same standards and policies now used in the present laity will be followed in expanding the h ' recreational program and facilities in the enlarged City. J. Electric Distribution l ' " The City recommends the use of City of Denton for new electric power. r A. Miscellaneous Street name signs where needed will be installed within i approximately six lb) months after the oftective date of annexation. + It. Capital Improvements Program (CIP) t. The CIP of the City is prioritized by such policy guidelines as: rs, A. Demand for sery1cfts as compared to other areas based partly on density o of population,, compared to other areas, established technical standards and professional studies, and natural or technical. re- a straints or opportunities. b . Impact on the balanced growth policy of the laity. ~ -t C. Impact on overall City economics. The annexed area will be considered for CIP in the upcoming CIP plan. The annexation area will be judged according to the same established criteria as all other areas of the City. I' 3 J x C r !!k~ ; N o` ~r Avon • Rd , l J r IM1 ~ ~I~ `I • . --may ` . _ IMP v Ircc f~ i •VV x :•bb:i r, orv..s t; Zia. 20 Ml R d. ell Mound • i I` 1 I ,o 04ad.' a San:lrJ- xx- 1 61111. X. 3. ry'' ,,,,7~• R ti r'l PA t TEXAS AIR CONTROL BUARD 5 i 5 i ,14ti RECUTM JUL 151987 Mr. Dun N. Jablonsky General Superintendent TEXAS AM NftOLBOARD DUININCK BROTHERS, INCORPORATED Post Office Box 1119 Grapevine, Texas lou51 Re: Change of Location Perm) )p at Ion Noss C-92801 an C-Y6%lF. Asphal Pte Plants Sanger, Denton County Dear Jablon r " this is in response r-4arding need permit applicatinns, we requested informatiot proposed site/location from wir Fort isorth Regional After considering in from o regional nffico we have dater- mined that the propo d site is not unable for an asphalt hatch plant. The proximity f residar,ce and bus'nesses to the site is such that nuisance condit.ior. ould lkely to develops A nuisance ; condition would cuntraven tre ntent of C Rules 101.4, For this reason we cannot recorrnend issua a of a rmit for the proposed locations Please seek a Poore sul able to Lion and let us know where it Is so our regional investiya or can aluate it. When we receive lnfonPatlon rPyardingg anot a ocation, we will t continue our evaluation of your perrolt app ications. If we can he of assistance to you, please let us know. 01 Sincerely, f F 1 Arthur J, Kellogg, PsE. Permits,Ulvision cel e Melvin Lewis, Regional Director, Fort !forth ~ 1i 1 E ANNEXA110 SCHEDULE A-5O L August 04, 1987 City Council sets date, time and place for public hearings August 07, 1987 Notice published in Denton Record Chronicle for first public hearing August 14, 1987 Notice publishea in Denton Record I Chronicle for secona public hearing August 18, 1987 City Council - first public hearing ✓ August 25, 1987 City Council - seccad public hearing ' August 26, 1997 Planning and Zoning Commission makes a recommendation ~i September 1.5, 1987 City Council institutes annexation P fSeptember lb, 1987 Publication of ordinance in Denton ItIs hecord Chronicle 1 ° rt t' October 2U, 1987 rtaai action by City Council 4 Ftf k , / l I ~ ..'f i ° Mari A ' Y 1 } t' y t r. . i, . ~ n' C pp VGA t yyiv:. ~I~ r . t r p.J i Y 4 Z Minutes August 2b, 1W Page 3 S1AFf REPUkT: Ms. Carson stated that this is a voluntary request r annexation by owner. Uonald k. curds, '[he purpose for annexation Is to permit the deveicpmeut of the property and a zoning request has been submitted 'I he request also includes CoopO; Creek Road, Mingo Road and the T 6 P Railroad. the property is vacant at this time, Safety Kleen and the Green Giant distribution center are located to the south Ind the Cooper LreeI Baptist church is located west. The staff recommends appruval of the annexation, j PETI7lUNER: Brian Burke, Burke Engineering, atatea that ` the owner wants the annexation and added that he is avail- able for questions. UECISION: Ms. Brock moved to recommend approval of A-47, seced by Mr. Glasscock, and motion unanimously carried (7-0). B. A-DU. Petition of City of Denton for annexation of a IT7EYS7 acre tract of land being part of the J. Ayers Survey, Abstract ho. 2, aria part of the 8. Burleson Survey, Abstract too: 6s, and being located west of I.3S and north of intersection of Rector Road, STAff REPORT: Ms. Carson stated that the property is the s to o a proposed batch plant and If the property Is an- nexed, it would be consistent with the city's pollcy to protect the City's Interest in development. the land is being used by the contractor for the State Highway Depart- ment as a maintenance yard. The major concerns are land use control, aesthetic quality, and relation to the cou- muhlty. The land use wuuld be in conflict with the Denton Development Guide. In order to meet the I,UUU foot strip f I{ requirement at the state IegISIat10TL , addIt1OnaI property r f! to the nor U: of the proposed kectUr subdivision has been included. She added that this would wore clear!] define the boundary between the Lity of Sanger and the Lity of Lenton. she said that staff recommends approval of toe annexation. ULL1510Nt Ms. Cole moved to recommend approval of A-Su, seconded by Ms. Brock, and motion unanimously carried C, tLELTION OF CHAIRPERSON AND VILE-LHA1k1,EkSUN of Planning I and on rig omm ss on j < Mr. Claiborne vacated the chair. Ms. Evans took Chair and called !or nominations for r Chairman. Mr. Holt nominated Bill Claiborne for Chairman of the i Planning and Zoning Commission. Seconded by Mr. Kamman. ;y Mr. Glasscock moved that the nominations cease and yy Mr. Claiborne be re-elected as Chairman at the Planning and toning Commission. v , Vote was called and motion carried (b-U). t; Mr. Claiborne took chair and called for nominations for Vice-CANirman. ,i Mr. Holt nominated Euline Brock for Vice-Lhatrman of the Planning and Zoning Commission. Seconded by Ms. Cole. 11 t Mr. Glasscock movee that the nominations cease and that Ms, Brock be elected as Vice-Chairman of the Planning and Zoning Commission. IN 00 , ~ marsh-,„.,............ d 5~. 19551, NOS AN ORDIN?,ACE ADOPTING THE BUDGET FOR THE CIT'i OF DENTONF TEXASF FOR THE FISCAL 88; R ANBEGINNING ON D DECLARING AN OCTOBER FFECTIVE I DATE,ANU ENDING ON SEPTEMBER 30 19 WHEREAS, notice of a public hearing on the budget for the City heretofore published Fat Texas, fifteen (15)c days in advance ofasai6 public hearing; and WHEREAS, a public hearing on the said budget was duly held on ! the 1st day of September$ 1987, and all interested persons were given art opportunity to be heard for or against any item thereof] NOWF THEREFOREF THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; ' SECTION 1. The Budget for the City of Denton, Texas for the fiSeal year beginning on October lF 1987 and ending on September 30, 1988 prepared by the City Manager and filed with the City ' SecretaryF as amended by the City Council, is hereby approved and ' adopted, a copy of which budget is attached hereto and incorporated by reference herein. rrr SECTION II. That the City Manager is hereby authorized to trans er the amounts money contained in the Reserve for to med in the 1987-88 budget ents as con %x Employee Benefit idepartments as needed ta SECTION III. That the City Manager shall cause copies of the budgetet o-et-sled with the City Secretary and the County Clerk 4 of Denton County. SECTION IV, t..C this ordinance shall be effective upon its i passage ani3 aPProval. a+ PASSED AND APPROVED this the day of SeptemberF 1987. I RAY STEPHENS, MAYOR ATTEST; " Li, r JENNIFER WALTERSF CITY SECRETARY APPROVED AS TO LEGAL FORMS ' DEBRA ADAMI DRAYOVITCHF CITY ATTORNEY \ V\ l ~ BY; a G 4i 3 R I CITY ofDENTON,TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76101 / TELEPHONE(817)566.8200 blEhl0kAN_DUM p i I I °r TO: t.loy,i Harrell, City Manager S FROM: John F. McGrane, Executive Director of Finance 44 DATE: September 10, 1987 ; SUBJECT: AMENDMENTS TO THE PROPOSED 1987-88 BUDGET ~'aA Pursuant to the discussion and consensus reached by Council r~ during the budget workshops, the City Manager's proposed 1987-88 budget will be amended as shown in Exhibit "A" if final approval a.,'i aa, is voted by Council. In addition, any changes Council chooses to make prior to the adoption will be incorporated into the final approved Annual Program of Services 1987-88 budget along with any v revised budgetary estimates. 1. ASWL ~b ~dl fly r hn F. Mc rane .Y~ ~~i In far. ~~I ^ ,~1". ~•rt3~.ttttf JFM:sjn Attachment 2755F aY 103k s , s, .d Eta r4 p: I ~ r 0.r ` J ~ t r 1 1 d 7 ~ • ' F, , s A Yt .d r j EXHIBIT 'A' PROPOSED AMENDMENTS TO THE PROPOSED 1987-88 BUDGET ,r 1. Add to Fire Operations for holiday pay. . . . . . . . . . . . 550000.00 2. Subtract from Fire Prevention for the elimination of the new fire Inspector position. . . . . . . . 21,960.00 Subtract from Miscellaneous and Con.ributions to other Agencies for the Main Street Program, Future Fire Station Operations and Maintenance Reserves, Contingency Reserves, and Reduction y .yti~fR,M- to Various Third Party Agencies . . . a . 115,700.00 ' 3. Add to Planning and Community Development E a=~ for the Main Street Program 320000.00 `t L~r u1 4 t s~a, a Add to Parke and Recreation for additional y i. . r civic Center and Recreation Centers hours 30650.00 i. Add to the Municipal Court Judge for student intern. . . . . . a a a a . . . . . 20278.00 6. Add to Legal Administration for outside it attorney fees . a a . a a a a . a . . . . . 500000.00 [ t'Y is 2755F L Y 09/10/07 r~ A ~f M 'I'fo i i'. S'. 1 .i ~ x f t, r "FT I~ r z M it iVt ~ L t. [ ~r D ' r ~ r. ~ ~~r..q[.r+.r,-..... . -....„..,,•.~a3rx.Wr;rr r,w„m, _ ) N f ) { ,4 r , ~J AD CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78201 / TELEPHONE (817) 588.8307 i Officc of the City Manager M E M O R A N D U M TO: Mayor and Members of the City Council ; FROM: Jennifer Walters, City Secretary DATE: September 11, 1987 SUBJECT: Back-up for Agenda Item I 5F Finance has submitted the attached ordinance for your consideration. p 1 ,`r S ~ 1~ r Jen r Wa ere a. 2727C/2 a 1 1 , P IjPk lif . AY 1 9 rY.Ya~ t , "r. i0 Yry f P I ~ rlf~ 1 ~r• irk. ' d hA K14Ya~'1 Y': a--.•-. Id1hM41N'.YALJr~gAiay i I f P 1 ~,~(t,K.,+~..r...... • -.,...rte ...H 1 tlk PF~~F1• 1 1 if' %l. a % H E 1954E NO. AN ORDINANCE LEVYING THE AD VALOREM TAX OF THE CITY OF DENTON, TEXAS, FOR THE YEAR 1987, AT THE RATE OF $ PER $100.00 ASSESSED EVALUATION ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 1987, NOT EXEMPT BY LAWS PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL EXPENSES, AND FOR INTEREST AND SINKING FUND ON OUTSTANDING CITY OF DENTON BONDS; PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLEC ;GNS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. I a ~ THE COUNCIL OF THE CITY OF DENTON# TEXAS HEREBY ORDAINS: 1 s SECTION I. That by authority of the Charter of the City of Denton, Texas, and the Laws of the State of Texas, there is hereby levied for the year 1987, on all taxable property situated within the corporate limits of the City of Denton on the first day of January, 1987, and not exempt by the Constitution and Laws of the State of Texas or by Section 2 of this Ordinance, a tax of on each $100.00 assessed value of all taxable property. i t SECTION Ii. That of the total tax, $ on each $100 of assesse --vi ue shall be distributed to the General Fund of the City to fund maintenance and operation expenditures of the City. SECTION III. That of the total tax, $0.2044 on each $100 of assesse va ue shall be distributed to pay the City's debt service as provided by Section 26,04(e) (3) of the Texas Property I Tax Codee I SECTION IV. That pursuant to Article VIII, Section 1-b of the Texas Constitution, $50000.00 mf the assessed value of I } resident homesteads, shall be exempt Lim City ad valorem taxes. ' SECTION V. That pursuant to Article VIII, Section 1-b of the Texas Const tution, $160000.00 of the assessed value of resident homesteads of persons sixty-five (65) years of age or older, shall be exempt from City ad valorem taxet.. eat SECTIOO Vi. That for enforcement of the collection of taxes hereby 130M , the City of Denton shall have available all rights and remedies provided by law. SECTION VII. That if any section, subsection, paragraph, sentence, c se, phrase or word in this ordinance, or :`r application thereof to any person or circumstances is held a invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION VIII. That this ordinance shall be effective upon ! its passage and approval. PASSED AND APPROVED this the day of September, 1987. 1 I l RAY STEPHENS, MAYOR ATTEST: t 7 ' 1 h; i n;A JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY 4 $w BY: T i xa r 1!4~>'~C «r irJ .x PAGE 2 + See. CITY COUNCIL REPORT FORMAT 10: Lloyd Y. Harrell, City Manager i, FROM: John F. McGrane, Executive Director of Finance ti• DATE; September 15, 1987 i~ SUBJECT: DEPOSITURY AGREEMEN1 FOR C11Y FUNDS On the agenda for September 15, 1987, is a resolution approving a k depository agreement for City funds. Copies of the proposal for y application to act as depository of City funds were distributed to banking institutions within the City, and First State Bank was the only bank to submit a bid, b. The term of this agreement is from October 1, 1987 to September 3U, f 1989. If there are any questions concerning the features of this investment agreement, I will be happy to respond to them. a 4' } r'•"'` hon . crane' JFMcGsaf 2760E Y 4 + V11 1+, S _ ~ .5 A Y h v4 „ 7 Y yr t 1 i +ry 1 'c n r r Y]y ~ A l t. o a p 195bL ~ x NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON DESIGNATING A DEPOSITORY FOR CITY FUNDS FOR A TERM BEGINNING OCTOBER 1, 1987 AND ENDING SEPTEMBER 30, 1989; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton has notified all the banking insti- tutions within the City of its intent to receive bid applications for the custody of city funds for a term beginning on October 1, 2987, and ending on September 30, 19891 and WHEREAS, the City of Denton has received bid banking institutions within the City desiring to bepdesignatedras a depository of city funds; and WHEREAS, after such opening the City Council found on the basis of the bid proposals that Texas has submitted the propose o er ng the most avorableeterms and conditions to the City for the handling of such funds; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTONI: ti SECTION I. That of Denton, Texas f is hereby selected an designated as the depos Cory for city funds for a term beginning on October 1, 1987, and ending on September 30, 1989. SECTION II. That the proposal of said institution having its { office and place of business in the City of Denton, Texas, shall be attached hereto and made a part hereof, and the same is hereby t in all things accepted. SECTION 111. That this Ordinance shall be effective immedi- ately from end of the City after its pac~sage and approval by the City Council ! of Denton, ?-I PASSED AND APPROVED this the day of September, 1987, RAY STEPHENS, M Y R e.: ATTEST. k I`fI + C 1 f ENNIFER ALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM= DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY " i CITY COUNCIL REPORT FORMAT 1 ~ r, t y TO: Mayor and Members of the city council FROM: Lloyd V. Harrell, City Manager j SUBJECT: INSURANCE PROPOSAL RECOMMENDATION After evaluating nine property and casualty insurance proposals and the recently concluded actuarial stud-- the Wyatt Company, it is our belief that the City should self-insure Y :Kers' Compensation and certain liability exposures. Howe`.er, property coverage and inexpensive liability coverage should continue to be purchased. BACKGROUND r Because in 1986-87 the City experienced its consecutive year of simultaneous a3 increases in insurance premiums and a reduction of liability limits, we began 3 explortng alternatives to purchasing commercial liability insurance (1.e., " self-Insurance, pooling, etc.). Therefore, we contracted with the Wyatt Company to actuarially predict our potential losses. Thal' estimated our losses within a ninety percent (901) confidence level, This means that nine ' (9) out of ten 1101 years our losses will not exceed their projection. r' pp' SUMMARY Self-insurance is being recommended for two reasons first, is the cost d, savings of the program and secondly, is the long-term stable insurance coat t' the program offers, The second-best insurance program bid we considered would 4 8 cost an additional 0210,686 more than a self-insurance proposal, Under current trends, this amount could progressively grow in future years, The other Insurance proposal also involved the use of a #50,000 and 025,000 v ;+w> deductibility which, judging from the City's lose history, would require us to 1 1 7 ` f pay more than ninety percent (901) of all claims as opposed to the insurance company. In addition, the City would still be required to pay approximately t450,000 in premiums. " Self-insurance will virtually freeze our insurance coat at its present level fcr years to come$ This will mean the City will be virtually sheltered from skyrocketing rante premiums in the future. We can make more advantageous .E insurance YN i;< use of our money, instead of paying increases of hundreds of thousands of =yy, dollars to insurance companies each year. Once such use will be to attempt to build a reserve for potential catastrophic losses or losses exceeding those k v , predicted by the actuarial study. J Por a more in-depth evaluation of the self-insurance proposal, please review the Attached memo from our Risk Manager to myself (see Attachment D). f ti14 y WYfIJa~"MM A,}ply. n'.v a n:M M..nW Ylv~r.w.:llm: ~ r.,_ t.n.ngwAy, ~ X11 . f 1 I CITY COUNCIL REPORT FORMAT Page 2 of 2, FISCAL IMPACT { Acceptance of this proposed recommendatior, would result in an expenditure of approximately $174,368 for insurance premiums and services. RESPECTFULLY SUBMITTED: r, Lloy V, Harrell n city manager d' Prepared by: I N fit,`. r "y n I~r t, ° Harlan L, son :•~f~f °s;: Risk til , + Nana e r a TwTh` kI°Xp'' Approved: ~,i P ' 1 1 MY n~.4~,' f 1 ~ f I 1 1 S '+ir~ l "b n7 ,k h kl, ~r ohn F, MMirane zxecuttvo Director of Hnance k J" . fr 'rl , L' h11 G. C' ~7 Ir L I ' t •c } 1 ' 7 r'.I 4 , k 1, yY 1 YYY,,, 4 x•~ 1k ,',lu ~ ,1.^~' n t ' t~lw .r 1. i 2758! " 04/10/81 , 4 k rv{ I , f Y 1 , d, rfi Ilj V li Y I IG A* _~g1Yn R1V a • , 1 f 1 r I.I. b ' r. C 1 y- 1 n , 1967E NO. AN ORDINANCE ACCEPTING THE PROPOSAL OF ARKWRIGHT INSURANCE COMPANY AND A PORTION OF THE PROPOSALS OF ARTHUR J. GALLAGHER & COMPANY AND EMPLOYERS INSURANCE OF TEXAS FOR PROPERTY, CASUALTY AND WORKERS' COMPENSATION INSURANCE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. i THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: i SECTION I. That the proposal of Arkwright Insurance Company and a port on of the proposals of Arthur J. Gallagher & Company and Employers Insurance of Texas for property, casurlty and workers compensation insurance, copies of which are attached hereto and incorporated by reference herein, are hereby accepted. SECTION II. That the City Council hereby authorizes the expenditure of unds in the manner and amount as specified in the ' agreement. SECTION III. That this ordinance shall bec,7,.ne effective immediately upon its passage and approval. PASSED AND APPROVED this the day of i y r 1987. f r>, i RAY STEPHENS, MAYOR E ATTESTS % JENNIFER WALTEF.S, CITY SECRETARY E APPROVED AS TO LEGAL FORMS DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY 1 } BY i U 1 ry^ 1 . l y' 1i I`4 k h % i i y , i f t r i I 4y 51ni 1 ATTACHMENT A r { r 4 e 1~ 19 x r r ~Inln 1 c G 1 ' ~ I I 1 f t ' 1 1 ° ✓1`15~ • ' y i Iy~ 1 7 ~ . 4 R{ M { ~n a ~ A ~ '..1 ° m , ~ See P`ry5 { r , 1 1 hy{ Ft ~r f I { r .fl e4 1/) p, 4~ " + 4 I ~ ,I:./ ...w-,..i .In .P .G•r...;(~~' ~~.;^v;:.}1r:P.+a,klk°,x w^'w;xIM M, Oaxw• ~ itl ( 'I ET7t. Iy1 r.l ATTACHMENT A ra~~ AIUMtiGHT A A %righl ' LaaiarNC t'umpuny - Sw1. 2711 12 71X) I 1611, w•rl Rued August 13, 1986 IULI%, I X M.10 214 233 11M Purchasing Department City of Denton 901B Texas Street Denton, Texas 76201 SUBJECT: Property Insurance Proposal - Bid 09766 Gentlemen: r" Enclosed is Arkwright Insurance Cu'"ipany's proposal for Property insurance, Some objectives of our proposed "All Risk" program are: + 1. Consolidate all property coverages into one master program, including your current Arkwright Boiler and Machinery coverages. This also t~ encompasses the EDP equipment and mobile equipment" 21 Onl one deducti6l nn y plies in the event of a joint property and Boiler 6 Machinery loss. This feature could save a significant amount of ¢'F money for the City of Denton. No Joint Loss Agreement, is necessary as yry, all coverages are underwritten by Arkwright. r 3. Ease of administration. Combining several small policies into a single t d` program accomplishes this. Isj1 4. Three year policy. This provides &,.ability while avoiding annual negotiations caused by contracts expiring. % ? + Excellent enginearing/property conservation services are rovided free of ' charge to enable The City of Denton to improve and to control your risk management programs to the .ullesc degree. This proposal: meats or exceeds specifications, See Attached forms and proposal datails. We are prepared to bind these coverages effective October 1, 1981. 4v~ r 1' ' If any questions arias from this proposal, I will be available for assistance. Cordially, V~ o i Alan H. Armbruster ~7ti,•, Senior Account Representative 04S9a t tV r 1 INSURANCE PROPOSAL 1 FOR I, THE CITY OF DENTON, TEXAS ' 1 y SY j 1 l 4 t. August 13, 1986 E E~ i ~r SY.~ 4.u 11 dM 0 , I 1 x N M e4 _ 1 qq r X r' j,p ^EC By r r11 'M,:. r Alan H. Armbruster Arkwright Insurance Company 12700 Hillcrest Road ' " VIII Suite 270 r,ba3 Dallas, IX 75230 II, -r Id a4i ro a.s rr,t; i , r c yd ~ , t I 4: txA e Y f t i f OVERVIEW { As a member of the Factory Mutual System, Arkwright enjoys the reputation as one of the world's foremost property insurance companies: i II We are organized to work closely with our policytolders. It is important that The City of Denton know Arkwright and its capabilities, as this will enable you to improve and control your risk management programs to the fullest degree. Our presentation is designed within the principles of Risk Management. We feel you will know us even better through our proposal. All of Arkwright's property forms are fully approved and admitted by the Sta:e of Texas. Included in this proposal is the most recent Arkwright Annual Report. This report reflects the success we've had in achieving our long term goal to provide a stable economical market for you. rl Stability will be an important factor in the future, as reinsurance maryats and many stock companies face severe market restrictions because of recent poor underwriting results and cyclical financial results in the securities ? markets. ' z Sound financial management and the high quality of the organizations we insure ~i h has made t•hts stability possible. These factors, coupled with a traditionally I Fs low level of losses, is a source of pride to us and one in which we hope you Er v,, will elect to participate. M1 "B ~ T n ~ t„! jYT t a 3 1 J~ Y ~ ~ 1 I 1 a I I CLAIMS SERVICES 1 f Property claims are adjusted through Factory Mutual Adjustment, located in Dallas, Texas. Factory Mutual Adjustment will work directly so that claims can be expedited and delays minimized. Losses Are reported to Mr. Alan H. Armbruster, Sr. Account Representative, at 214.233.1094 or directly to Factory Mutual Adjustment at 214.661-9202, The report of loss will be immediately transmitted to Factory Mutual Adjustment, which will contact the insured for " a immediate action based on the loss. Depending upon the nature of claims, E adjustment representatives can be at the site of the loss within hours. I Mr. Tom Freeman, Vice President and Regional Claims Manager for Arkwright is s responsible for developing a positive working relationship with our policyholders and working closely with Factory Mutual Adjustment. He will monitor all loss adjustment activities and participate where necessary to provide supplemental service that will assure fair and equitable settlements on a timely basis. Representatives of The City of Denton will be kept informed through correspondence and reports so that the status of claims can be known at all ! times. I t ~1 h . / E A ~ 1 \I 1 r+p~ 1 tir~~ I ly l3, \1 IF Fn N .11 1 S±~ 1 Al I~ ;~}A } ` L 1 { 1~y 1 Y a. f 6 4, V^ a ! 1 i h i I 7 l i i i COVERAGES 1 I~ I. Pterr rnv RIGES: "All-Risk- coverages, Real and Personal andpeY£DP including Flood and Earthquake; Equipment. See enclosed property forms. i S , II. ^~^`s',CQ1r°° INCLUDE:- Automatic Coverage Error and Omissions Demolition Increased Cost or Construction 1 Debris Removf&I `r Collapse y i Theft/Burglary w Transit 'r Property of others i per x,. i, ~ '~S 60 Da III. °°`!IAL CONDITIONS' N o CoinsuranceaciAgreeduAmount 4 Repair or Replace C: t' Premium and/or Rates can be adjusted annually. a r i. r y1 October 1, 1987 to Oct-ber 1990 k rja IV. YO1t,~Y TEAI1: i r As per specifications. ~~k 7. L4CATIO;IS: ~ 114 43,508,000 - 100%, per specifications VI. VAt.ncc TOTAL: $ 1 , - a *I K J r t, SFr f. r. S \K jai 1 o r. y r ; i s 4 VII. LIMITS OF LIABILITY: Blanket 43,508,000 EDP Equipment 11500.000 EDP/Media 250,000 EDP/EE 100,000 Flood 5,000,000 annual aggregate Earthquake 5,000,000 annual aggregate i Unnamed Floater Loc. 500,000 [ Errors 6 Omissions 1,000,000 j I Demolition and Incr. Cost of Constr. 1,000,000 Automatic Coverage 5,000,000 Transit 100,000/200,000 C r P ~ N.. VIII. DEDUCTIBLES: 'All-Risk" $50,0 00 Combined IX, PREMIUM: $38,285 annually r 4 0. 5 r X. COVERAGE OPTIONS: Coverage for scheduled vehicles at described ~rAS:ry locations $6,535 annual premium, policy r deductible applies. 3 tn" by 1 f ~I li ,n.~ Y . J Yi Q "1. ~ I , F k l 5 i . 1 bf ~ _ N t~t L 1 •°i ~ ~ a}, ~ ter.: I rd r p q, Sr yi. a .r(M. , .1 q k co f .I < a i i SUMNARY_OF BENEFITS 1. Arkwright is a major underwriter of Municipalities and Institutional organizations. The property insurance programs we design for these Insureds are unique in each case. h 2. Policy Administration will be simple and time expended by The City of Denton management will be minimal. ~ j 3. Arkwright is committed to providing stability in the marketplace. j 4. Repair _or replacement coverage is provided for property coverages without If coinsurance. 5. Favorable pr icing and deductibles, both now and in the future. 6. Excellent Engineering/Property Conservation services. An engineer of our organization will periodically visLt with you to assist in property } i conservation needs. Free engineering reviews of plans, materials and @ completed work is provided for any new or proposed projects. c 7. Service is provided on several levels with planned visits by management, the account underwriter, and the recount engineers. S. New additions at Insured locations are covered automatically without the i c need for additional Builder's Risk policy, up to the policy limits. 4. High limits of capacity to provide Fire and DIC limits as well as Boiler r pri' [ and Machinery requirements as needed, + 10. Coverage for collapse and liovid damage is to full policy limits. 11. Full DIC coverage including theft. flood, and earthquake. r + ,:I 12. The deductible for the various property coverages applies concurrently. A sjk joint loss involving Fire, Boiler and Machinery, and Difference In i ' Conditions coverages would have only one deductible applying_ to a one 13. There will be no need for a_joint loss agreement as all property coverages are being underwritten by Arkwright•Boston Insurance Company, i 1 14. Damage to property of others is included while in your "care, custody, and control", with values appropriately reported, 15. Written notice is not required in the event of loss, 5 16. Extra Expense and Valugbie Papers coverages can be added at any time. I Y`i t l 1 i j CURRENT ARKWRICHT POLICYHOLDERS IN 'DF , i CITY OF DENTON CITY OF DALLAS I I CITY OF AUSTIN CITY OF EL PASO E" CITY OF GARLAND ` CITY OF ODESSA PUBLIC SERVICE OF SAN ANTONIO 9 ?"a DALLAS/FORT NORTH INTERNATIONAL AIRPORT r DALLAS INDEPENDENT SCHOOL DISTRICT r ' RICHAR)SON INDEPENDENT SCHOOL DISTRICT DRESSER INDUSTRIES, INC, TE7tAS INSTRUMENTS INCORPORATED w , ~ p r t!. i y M'r r 1 ALL RISK POLICY STOCK COMPANY FORM . f Policy No Arkwright-Boston Insurance 0M, Arkwright- Boston Insurance Company 225 Wyman Streel, Waltham, Massachusetts 02154 i ~ i In Consideration of the Provisions and Stipulations herein or added hereto 1 and of Dollars Premium j this Company, for the term from the , day of 19 _ at 12.01 am., Standard Time, at r' of to the day of 19- location of property involved, loan amount not exceeding t _ Dopars does insure - and legal representatives. to the extent of the actual cash value of the property at line of loss bul nol exceeding the amount which it would cos' to repair or replaco the proper ly welh material of like kind and uual ty within a reasonable lime after such loss without allowance for any increased cost of repair or reconstruction by } lr' reason of any ordinance or law regulating construction. repair and use and wdhout compensation for loss resulting from interruption of business or manufacture nor in any event for more than the interest of the insured r r "t against ALL RISKS OF PHMCNL LOSS OR DAMAGE, except as hereinafter excluded to the properly ; described hereinafter while located or contained as described in Ihis Poticy or ppro rala for ninety days at l 1 each proper place to which any of the property slrall necessarily be removed for preservation front loss insured against in this Policy, but not elsewhere PROVISIONS SPECIALLY APPLICABLE TO THIS POLICY ~N Assignment of this Policy shall not be valid except with the written consent of this Company This Policy is made and accepted subject to the foregoing provisions and stipulations and (hose hereinafter stated, which are hereby made a part of Ih s Policy together with such other provisions. stipulations and agreements as may be added thereto. as provided in this Policy F a' F In Witness Whereof, this Company has executed and attested these presents; but this policy shall not be valid i unless countersigned by the duly authorized Agent of this Company at r ~ Srrcretary Presrdenl G "'1 Countersigned this day of 19 - ent r iRev. 2 e81 1 ~ -t 4 r SPECIAL CONDITIONS The coverages provided by the Texas Standard Policy are herein extended to include All Risks of physical loss or damage to insured property located in Texas, except as hereinafter excluded. The terms and conditions of the Texas Standard Policy shall take precedence over any terms and conditions of this Form and Endorsements thereto which are inconsistent therewith. A. PROPERTY INSURED Unless otherwise excluded, this Policy covers the following property while on the described premises and within 1,000 feet thereof: 1, real property in which the Insured has an insurable interest; Z personal property owned by the Insured; 3. personal property, other than motor vehicles, of officers and employees of the Insured; ! 4. personal property of others in the custody of the Insured, which the Insured is under obligation to keep insured for physical damage of the type insured against under this Policy; 5. y personal property of others in the custody of the Insured to the extent of the Insured's legal liabil,t forphysical loss ordamageof the type insured age inst by this Policy. This Company further agrees to delend any suit against the Insured alleging liability for such damage, destruction or loss and seeking damages on account thereof, even if such suit is groundless, false or fraudulent; but this Company may without prejudice, make such investigation, negotiation and settlement of any claim or suit as this Company deems expedient, B. PROPERTY EXCLUDED This Poli,;y does not w .sure against loss or damage to: 1, bills, evidences of title, notes, fine arts, furs, jewelry, precious metals or precious stones; 2, land, standing timber, growing crops; 3, vehicles otherwise insured; watercraft; 4. property sold by the Insured under conditional sale, trust agreement, Instal ment Ian or olh deferred p er payment plan after ` delivery to customers, i , 1 S. property in transit unless endorsed hereon, 6, underground mines and mining property located below the surface of the ground; f r' zy ; 7. dams, or dikes. i C. EXCLUSIONS GROUP A This Policy does not insure against loss or damage caused by or resulting from any of tl following regardless of any other cause or event contributing concurrently or in any other sequence to the loss: 1. nuclear reaction or nuclear radiation or radioactive contamination from any cause, all whether direct or indirect, proximate or remote; however, r (a) if fire not otherwise excluded results, the Company shall be liable for direct j loss by such resulting fire but no; including any loss due to nuclear reaction, r t nuclear radiation or radioactive contamination, ar.d, i (b) this Policy does insure against loss or damage caused by sudden and accidental radioactive contamination, including resultant radiation damage, from material used or stored or from processes conducted on the described premises, provided that at the time of such loss there is r,Fiithera nucfearreactor ` capable of sustaining nuclear fission in a self-supporting chain reection norany now or used nuclear fuel on the described premises; Form 1000T i, log M,AU81 salvlce Buieav PAGE 1 OF 1 I f'+wwo00. Massacnusenr fddort Mal 1985 4 i 2. (a) hostile or warlike action in time of peace or war, including action in hinder- ing, combating or defending against an actual impending or expected attack (i) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (ii) by military, naval or air forces; or (iii) by an agent of any such government, power, authority or forces; (b) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (c) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; seizure or destruction under quarantine or custom regulations; confiscation by order of any government or public authority, or risks of contra- band or illegal transportation or Trade; 3. explosion, rupture, bursting, cracking, burning, or bulging of steam boilers, steam turbines, gas turbines, steam engines and pressure vessels or piping or apparatus attached to any of the foregoing while such property is owned, operated or controlled by the Insured; (a) except loss or damage resulting from the explosion of accumulated com- buslible gases or unconsumed fuel within a furnace of a boiler or pressure vessel, other than combustion gas turbines, or within the flues or passages which conduct the gases of combustion therefrom; (b) unless 1, caused by fire; or 2, damage by fire results and then the Company shal I be liable for only such resulting fire damage; delay or loss of market; 5. any fraudulent or dishonest actor acts committed alone or in collusion with others (a) by any proprietor, partner, director, trustee, officer or employee of the Insured, whether or not such acts are committed during regular business hours; or (b) by any proprietor, partner, director, trustee, or officer of any proprietorshlp, f partnership, corporation or association (other than a common carrier) engaged by the Insured to render any service or perform any act in connection with property insured under this Policy; 6. extremes or changes of temperature (except damage to equipment) or changes in relative humidity, al l whether almospheric or not; unless liquid escapes to the open in which case the Policy will cover damage caused by the escaped liquid and loss of or damage to the Ifquid; T lack of incoming electricity, fuel, water, gas, steam or refrigerant caused by an occurrence off the premises described in this Policy unless specifically endorsed herein; however, if the lack of such a service causes physical damage otherwise I 1 insured under this Policy on the described premises, this Policy shall cover the resulting damage; 8. insects or vermin; € 9. floodwaters, waves, tide or tidal water, the release of water, the rising, overflowing or breaking of boundaries of natural or man-made bodies of water, or the spray i from any of the foregoing, whether or not caused by, resulting from or contributed to I by loss or damage of the type insured under this Policy unless damage by fire or explosion results, and then the Company shall be liable for only such resulting damage; i FWM MOOT Factory Mulu31 Seryl[e RwMl FACIE 2 OF i Ed,l on May 1985 1 Noiw d, Masuchueelle I 10, any earth movement includinu, but not limited to earthquaxe, landslide, or subsi- dence whether or not caused by, resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results, and then the Company shall be liable for only such resulting damage, GROUP B. This Poligy does not insure against: 1. indirect or remote loss or damage; 2. mechanical or electrical breakdown (except lightning damage) of any equip- ment, unless physical damage not otherwise excluded re,ults, in which event, thin Policy shall cover only such resulting damage; I 3 mysterious disappearance, or loss or shortage disclosed on taking inventory or any unexplained loss; 4. faulty workmanship, material, construction or design from any cause, unless physical damage not otherwise excluded by this Policy results, in which event, this Policy will cover only such resulting damage; 5. loss attributable to manufacturing of processing operations which result In dam- age to stock or materials while such stock or materials are being processed, manulactured, tested or otherwise being worked upon; all unless physical dam- age not otherwise excluded by this Policy resulls, in which event, this Policy shall cover only such resulting damage; 6 deterioration, depletion, rust, corrosion, erosion, wear and tear, inherent vice or latent defect, unless physical damage not otherwise excluded by this Policy results, in which event, this Policy shall cover only such resulting damage; 7. contamination, shrinkage or change in color, flavor, texture or finish, unless such damage results directly from other physical damage not otherwise excluded by this Policy; ' - 8. settling, cracking, shrinking, bulging, or expansion of pavements, foundations, { walls, floors, or ceilings; unless physical damage not otherwise excluded by this Policy results, in which event. this Policy will cover only such resulting damage; 9. impact damage to docks, piers and wharves ` 10. increase in loss attributable to any law or ordinance which regulates construc- tion, repair, replacement, debris removal, use, or which necessitates demolition t of any undamaged portions of property on the premises described herein; { 0. ADDITIONAL COVERAGES } CONSEQUENTIAL 1, This Policy covers reduction in value of insured components or parts of products ` REDUCTION due to physical loss or damage insured against by this Policy to other insured ` IN VALUE components or parts of such products. DEBRIS •2. This Policy covers expense of removal from the described premises of debris ' REMOVAL remaining after any loss hereby insured against. u l r l'~ k 01 Mul farm y 3WT ` Feckry IANUaI Service Aureau FADE 3 OF 1 Etlo'On May 1985 Norwood, Me154ChuU11j ~ a.x i lie, PROPERTY 3, This Policy covers property of the Insured at any location within the Continental REMOVED United States, Hawaii, Alaska, Puerto Rico or Canada when removed from the i FROM described premises for the purpose of being repaired, serviced, or in order to avoid DESCRIBED IhreMened damage from flood, excluding: PREMISES (a) property otherwise insured; (b) property excluded from the insurance under this Policy; or (c) property removed from the described premises for normal storage or proces- sing or preparation for sale or delivery. This Policy also covers pro rata for ninety days at each proper place to which property of the Insured shall necessarily be removed for preservation from loss insured against in this Policy. DEMOLITION 4. ff at the time or any physical loss or damage insured against by this Policy there is AND in force any law o, ordinance regulating the construction, repair, replacement or use INCREASED of buildings or structures then this Policy shall cover as a result of enforcement of COST OF such law or ordinance: CONSTRUCTION (a) the additional loss sustained in demolishing any undamaged portion of the buildings or structures; (b) the cost incurred in actually rebuilding both the damaged and demolished r portions of such buildings or structures with mal -rials and in a manner to satisfy such law or ordinance. The total liability hereunder shall not exceed the actual expenditure incurred in demolishing the undamaged portion of the building(s) or structure(s) involved plus j ? the lesser of the following: f x 3 , la) the actual expenditure incurred, not including the cost of land, in rebuilding 3 on another site, or , e (b) the cost of rebuilding on the same site. This Policy shall not be liable for any cost of demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating any form of pollution. AUTOMATIC 5. Unless otherw se insured on an all risk basis, this Policy also covers property up COVERAGE to a limit of at any ;ocation in the United Slates, Puerto Rico or y Canada rented or purchased by the Insured after the inception date of this Policy for a period of 90 days from date of acquisilion of such location. I ERRORS AND 6. In the event of loss or damage to property of the Insured located in the United I ' OMISSIONS States, Puerto Rico and Canada, and such loss is not payable under this Policy solely because of: (a) any error or unintentional omission in the description of location of property insured under this Policy, which error or omission existed at the inception date of t this Policy; or (b) any error or unintentional omission in the description or location of property I insured under this Policy, in any subsequent amendments to this Policy; or I (c) failure through error or unintentional omission to include (1) any location owned or occupied by the Insured at the inception date c'this Polici, or (2) any location newly acquked or occupied during the term of this Policy; or : Farm 30001 Faclory Vowel Sonlce Bureau PAGE 4 or 7 rrlnn,r M,iy Ir8s Norwood. klislachaaeits I , I r ~ ERRORS AND (d) any error or unintentional omission which results in cancellation of property OMISSIONS insured under this Policy, (Cont'd) such loss or damage shall be insured by this Policy only to the extent this Policy would have provided coverage had the error or unintentional omission not been made, up to a limit of $ EXPEDITING 7. This Policy covers up to a l imit of the reasonable and neces- EXPENSE sary extra costs of temporary repair or damage to property and the extra costs of expediting the permanent repair or replacement of such damaged property resulting from physical damage Insured against by this Policy. In no event shall these Expediting Expenses include expenses recoverable else- where in this Policy or the cost of permanent repair or teplacement of the damaged property. PROTECTION 8. In case of actual or imminent physical loss or damage of the type insured against AND by this Policy, the expenses incurred by the Insured in taking reasonable and PRESERVATION necessary actions for the temporary protection and preservation of property insured OF hereunder shall be added to the total physical loss or damageothenn ise recoverable PROPERTY under the Policy and be subject to the applicable Deductible and without increase in the Limit provisions contained in this Policy. E. GENERAL CONDITIONS 1 TITLES OF 1. The titles of the various paragraphs of this form (and of endorsements attached to PARAGRAPHS the Policy) are solely for reference and shall not in any way affect the provisions to which they relate. DEDUCTIBLE 2. In each case of loss or damage covered by this Policy, this Company shall not be 3j liable unless the Insured sustains a loss in a single occurrence in excess of any r applicable deductible provided elsewhere in this Pol icy and then only for its share of such excess. ? When this Policy covers more than one location, the deductible shall apply against r , the total !oss or damage covered by this Policy in any one occurrence. i 11 two or more deductible amounts provided in th:s Policy apply to a single occur- rence, the total to be deducted shall not exceed the largest deductible applicable ! unless otherwise provided in this Policy. II this Policy insures against both Property Damage and Time Element Icsses, the deductibles as shown in this Policy shall apply sepprately to each such coverage, even if both are involved in a single occurrence, unless otherwise provided in this 4 Policy. ' VALUATION 3. Unless otherwise endorsed hereon, adjustment of loss under this Policy shall be: j (a) on stock in process, the value of raw materials and labor expended plus the proper proportion of overhead charges; (b) on finished goods manufactured by the Insured, the regular cash selling price u. at the location where the loss occurs, less all discounts and chargesiowhich tho merchandise would have been subject had no loss occurred; r (c) on raw materials, supplies and other merchandise not manufactured by the Insured, the replacement cast, (d)on exposed film, records, manuscripts and drawings, thevalue blank plust, lie cost of transcription; ' y, Foam MOT fooofy Muhiol Sewke Bureau PAC E 5 OF r Edrbn May 1995 Noreood, Massachuse9a VALUATION (e) on media, data and programs for electronic and electromechanical data (Cont'd) processing and production equipment, the costof reproducing such media, data J and programs from duplicates or from originals of the previous generation of the data; (f) ors jigs and fixtures, dies, small tools, patterns, contractors' equipment, em- ployees' personal property, and personal property of third parties, the actual cash value with proper deduction for depreciation, but not to exceed the cost to repair or replace the property with material of like kind and quality; (g) on leasehofd improvemen's and betterments, the replacemer t cost less physical depreciation if actual) r replaced at the Insured's expense within two years from the date of loss; if not so replaced, the unamortized value; (h) on all other property, the actual cash value with proper deduction for depre- ciation, but not to exceed the cost to repair or replace the property with material of like kind and quality; r all to be computed al the time and place cf loss, j CONSEQUENTIAL 4. In the event of physical damage insured by this Policy to any property situate on DAMAGE the described premises and such damage, without the intervention of any other independent cause, results in rA seq?jence of events which causes physical damage to other property insured by this Policy, the ii this Policy will cover such resulting loss or damage Nothing in this clause shall be deemed to extend this insurance to property which is otherwise, specifically excluded from coverages by the terms of this Policy. ? The liability of this Company includes only the physical damage incurred during such period as would tie required with the exercise of due diligence under normal conditions to repair or replace the damaged property, and does not include any liability resulting from inability of the Insured to make repairs or replacements because of stria or labor disputes. SPANDS AND 5. If brandp,i or labeled merchandise covered by this Policy is damaged and this j LABEI-S Compary elects to take all or any part of such merchandise at the value established by the (arms of [his Policy, the Insured may, at the irown expense, stamp "salvage"on the merchandise or its containers, or may remove orobl iterate the brands or labels, if w such sta(np, removal or obtiteration will not physically damage the merchandise, but the I;Isured must relabel the merchandise or containers in compliance with the requirements of law. r ` iUBROQATION 6. This Company may require from the Insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this Company, but this Company shall not acquire any rights of recovery which the Insured has expressly waived prior to loss nor shall such waiver affect the Insured's rights under this Policy. Anyrecoveryasa result of subrogation proceedings arisingoutofa lossoccurrence, after expenses Incurred in such subrogation proceedin93 are deducted, shall accrue to [he Insured in the proportion that th3 amount of deductible and/or the amount of any provable uninsured loss bears to the amount of the entire provable loss. NO REDUCTION 7. Any loss hereunder Shall not reduce the amount of this Policy. BY LOSS DIVISIBLE 8. If the p•emises described in Ihis Policy include two or more buildings or the CONTRACT contents of two or more buildings, the breach of any condition of this Policy in respect to any one or more of the buildings insured or containing the property insured, shall not prejudice the right to recover for loss occurring in any building insured or containing the property insured where, at the time of the loss, a breach of conditiun does not exist. ` faro IOOOT Factory MutYd service Sam Nvwaod, Matucnusnea FAliE R OF f Ed~tron May 1995 i r this policy, Neither the INSPECTION 9. The Company. at all reasonable times during sueed li y Shiperiod, shall be permit led but not obligated to inspect the property Company's right to make inspections nor the making thereof nor any report thereon properly is safetor health ul d Insured -shall constitute tit eany s orr war a Q llbat such of } ° others, made good hereunder to She extent the 10. No COLE ECTIUN loss or part of a loss shack be paid or FROM OTHERS insured has collected such loss from others. f at the time of loss i 11. The company shall not be liable for loss under this Policy there is any other insuraould attach if this insurance had not been 11 ply only as excess and in no event as insurance shall al: OTHER effected, except that this nce which w 1I INSURANCE nsurance, a nd then only after all other insurance has been exhausted. coniribuloryi Suh e request this Plolicy drefund the 12. This Policy shall be ea eon demand time CANCELLATION expired time. This case this Company shall, p to the insured a thirty excess of paid premium above the cush is Company by g iviforng the t the Policy may be cancelled at anytime by tI or tende ion witir (30) days written istCompany's noatmal earned pram um for the expired time, whack this premium above i, excess if not tendered, shah be refunded on demand Notice of cancellation shall I not tendered} will be refunded on demand state that said excess premium ( it the insured fails to remit, the Company However, this Polime ayof Premium) forsuch polic , by giving the insured not less when due, the pY 1 than ',en (10) days written notice of cancellation. 4 r 0: yf ~,wi r. -r C ' t r~ I ➢t r r n Ed'a10nMayt9B4 Form 3404T WE I Of I For" Mutual Servita Sureau - , .r: . ` _ ;ryrvrDed. Maafacnwetta PAVntED M U 4 A h REPAIR OR REPLACE ENDORSEMENT In consideration of additional premium, paragraphs (f), (g) and (h) of General Condition No. 3, VALUA- TION, of part E. GENERAL CONDITIONS of the Policy to which this Endorsement is attached are amended to indemnify the Insured for the cost of rebuilding, repairing or replacing the damaged or destroyed property subject to the following conditions: 1. If property damaged or destroyed is useless to the Insured or is not repaired, rebuilt or replaced on 'i the,same or another site within two years from the date of loss or damage, this Company shall not be liable for more than the actual cash value (with proper deduction for depreciation) of the property destroyed, 2. The total IlabiliP. of this Company under this Policy foi loss to property included under this r Endorsement shall not exceed the smallest of the following: a. the cost to repair, or b. the cost to rebuff Id or replace, on the same site, with new materials of equivalent size, kind and quality, or c. theactual expenditure incurred in rebuilding, repa[ringor replacing the damaged or destroyed property on the same or another site, but not to exceed the size and operating capacity that existed at the time of loss, all as of the time when, with due diligence and dispatch, rebuilding, repairing or replacement of the damaged or destroyed property could be effected. 3. If at the time of loss covered under this Policy claim is made for the cost of replacement of the property damaged or destroyed, then this Company shall be liable under this Endorsement for no ' greater proportion of such loss than the amount of bears to 100% of the cost at f the time of loss and at the some site of replacement in a new condition with materials of equivalent k size, kind and quality, of all the properly included under the terms of this Endorsement. The value of the foundations and other properly tocaled below the lowest basement doeror, where there is no basement, below the surface of the ground shall be disregarded in applying this cc-insurance a provision. In the event that the aggregate claim for any loss covered under the conditions of this Endorsement is less than $100,000, no special inventory or appraisement of the undamaged property shall be required. For property lo:ated in the Commonwealth of Massachusetts or the State of North Carolina, pa-agraph 2,c. of this Endorsement is amended to read as follows: i 2,c, the actual expenditure incurred in rebuilding, repairing or replacing the damaged or des- troyed property on the premises described in this Policy or some other location within the Commonwealth of Massachusetts or the State of North Carolina, as the case may be, mutually agreed upon between the Insurer and the Insured but not to exceed the size and operating ' capacity that existed at the time of loss. r. - i a,. •I Form 31H factory Mutual Service Burou PAGE 1 OF I EddwnVey I9E4 Norwood MmacNuaetu r 1 , PRINTED M U 8 A. AGREED AMOUNT ENDORSEMENT j (Repair OF Replace) Until the amount stipulated under Paragraph 3 of the Repair or Replace Endorsement represents at least 100% of the value of the property included under the Endorsement I ,r Y r t r YIt ~V !rY /R ± r ~ F s,~ a m I , 1 ~f ~ r ' A ycY H d , 4n l tM ~At Y t 1 7 I ,tl. y. P, A u1 N i',til ..Y ~ , u W NlYI f ~5 r ~rY i V~ ,~~'y ~ h faMl 1101 I ~ a V rscwfV M60UII BaMC1 BmUJ PAGE I OF I Edltion NOWmbar 1044 f S? } ' y; t tr Norowd. Muuuhm"s poplaCN March 1080 f r~ a PAIN1EDIN UBA ~5 I rl I lrr 1 '1 r.. Ir A4 r M. 9 1. }v C I TRANSPORTATION ENDORSEMENT In consideration of additional premium, the Policy to which this Endorsement is attached is extended to cover Personal Property as described herein, except as otherwise excluded by this Policy, while such property is In transit' PROPERTY INSURED 1. Personal Property owned by the Insured. 2. Personal Property shipped to customers on F,O,B., C. & F. or similar terms. The Insured's contin- gent interest in such shipments is admitted I 3. The interest of the Insured in, and legal liability for Personal Properly of others in the actual or constructive custody of the Insured 4, Personal Property of others sold by the Insured which the Insured has agreed prior to loss to insure during course of delivery. ADDITIONAL PROPERTY EXCLUDED 1. Samples in the custody of salespersons or selling agents, 2, Properly insured under import or export ocean marine policies. 3. Waterborne shipments via Panama Canal and waterborne or airborne shipments to and from Alaska, Puerto Rico and Hawaii 4. Shipments made by air unless via regularly scheduled airlines. 5. Property shipped by mail. ' 6. Properly of others, including the Insured's legal liability therefor, hauled on vehicles owned, leased, or operated by She Insured when acting as a common or contract carrier as defined by the Interstate Commerce Commission Regulations or state regulatory agencies. f LIMIT OF LIABILITY The liability of this Company in anyone loss, disaster or casually, either in case of partial or total loss, or salvage charges, or any other charges or expenses, or al l combined, shall not exceed the applicable limit of liabrhty, as follows: (A) on Personal Property in or on any one conveyance crindividual unit thereof. except; (B) $ aggregate liability in any one loss, disaster or casualty. 1 DEDUCTIBLE CLAUSE ` Each claim for loss or damage or expense under this Endorsement shall be adjusted separately and this Company shalt not be liable unless the Insured sustains a loss in excess of $ and then only for its i share of such excess. y ,"r ATTACHMENT AND DURATION OF COVERAGE hes fromthetime the property leaves the original point S. Exceptas hereinafter provided, this insurance attac ? of shipment for the commencement of transit and covers thereafter continuously in the due course of transit within the Continental United States of America and Canada, and Alaska, within Hawaii or within Puerto Rico, until delivered at destination. Coverage on export shipments not insured under ocean marine policies does not extend beyond the time i `t when the property is loaded on board overseas vessel or aircraft. Coverage on import shipments not i insured under ocean cargo policies does not attach until after discharge from overseas vessel or aircraft. ADDITIONAL COVERAGE Coverage provided by this Endorsement shall include general average and salvage charges on ship- ments covered while waterborne. IL' f ADDITIONAL EXCLUSION This Endorsement does not insure against loss or damage caused by or resulting from dela%, loss of ;market or business interruption. farm 3101 PAGE I OF 2 Edition Much 1984 Feclory AhAu~rt Seneca Bureau Norwood, MHNChulelll GENERAL CONDITIONS ELIMINATION The following exclusions Nos. 8 and 9 in Group A of Part C. EXCLUSIONS of this r/ OF Policy do not apply to coverage under this Endorsement: EXCLUSIONS 8. Floodwaters, waves, tide or tidal water, the release of water, the rising, ov erflow- ing, or breaking of boundaries of natural or man-made bodies of water, or from any of the foregoing, whetheror not caused by, resulting from or contri spray to by loss or damage of the type insured under this Poli buted cy, unless damage by fire or explosion results, and then the Company shall be liable for only such resulting , damage; 9. Any earth movement including, but not limited to earthquake, landslide, or subsidence whether or not caused by, resulting from or contributed to by loss or damage of the type insured under this Policy, unless damage by fire or explosion results, and then the Company shall be liable for only such resulting damage; TO O BAILEE BENEFIT or This bainsurance shall in noway inure directly or indirectly ;0 the benefit of any carrier € T VALUATION In case of loss, the basis of adjustment, unless otherwise endorsed hereon, shall be as follows: (A) Property shipped to or for the account of the Insured shall be valued at actual invoice to the Insured together with such costs and charges ('including the commission of the Insured as selling agent) as may have accrued and become legally due thereon; a (B) Property which has been sold by the Insured and has been shi a account of the purchaser (if covered hereunder) is valued at the am unt ofrthe Insured's selling invoice, including prepaid or advanced irnighh (C) Property not under invoice shall be valued at the actual cash market value at the point of deslination on the dale c Idisaster. less anycharges;,avedwhich would % have become due and payable under delivery at destination. t BILLS f)F Permission is hereby granted to the Insured without prejudice to this insurance 10 LADING accept the ordinary Bills-ol-Lading used by carriers, including released and/or under-vafued Bilis-of-Lading and/or Shi sured may waive subrogation against railroads under ssidetrack agreements; and, except as otherwise provided, the Insured shall not enter into any special agreement with carriers releasing them from their common law or statutory liability, FRAUD This Endorsement also covers loss of or damage: OR DECEIT (A) Occasioned by the acceptance by the Insured, Insured's agent, customer or consignee(s) or others of fraudulent Bills-of-Lading. Shipping or Messenger t Receipts; (B) Obtained by fraud or deceit, perpetrated by any person(s) who may represent themselves to be the proper party or parties to receive the properly for shipment or to accept it for delivery. i I room 311? 111 recrory Wulf Service Sweatt PAGE OF p . G! No%vo A, ueenF FYIINiFD+N U 3 A PnINIE EG~ban Mercn 1 4N . EARTH MOVEMENT ENDORSEMENT In consideration of additional premium, the Policy to which this Endorsement is attached is extended by deleting the following exclusion No. 9 in GROUP A of Part C. EXCLUSIONS: 9, Any earth movement including, but not limited to earthquake, landslide, or subsidence whetheror not caused by, resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results, and then the Company shall be liable for only such resulting damage LIMITS OF LIABILITY This Company shall not be liable under the terms of this Endorsement for more than the limit specified elsewhere in this Policy for each single earth movement nor for more than the limit specified elsewhere in this Policy during any twelve consecutive months II If this Policy includes Time Element Coverage, or Automatic Coverage, or Floater Coverage the foregoing I - limits shall be the maximum, amount collectible under this Policy. For the purposes of this Endorsement, the term "single earthquake" includes all shocks occurring within a continuous 72-hour period. DEDUCTIBLE CLAUSES APPLICABLE TO COVERAGE IN ALASKA, CALIFORNIA, HAWAII AND PUERTO RICO 1. PROPERTY DAMAGE In case of claim for loss or damage under this Endorsement the Company shall not be liable as a result of a single earthquake or other covered occurrence in Alaska, California, Hawaii or Puerto Rico unless the Insured sustains a loss in excess of . per cent ( ) the ationsl insured under this Endorsemeni, and then only for its share of such a pass rltl the nudingce provided to , one location, this deductible pen;_nlage shall apply separately atleachdlocation tcovers more than 2. TIME ELEMENT COVEP.AGES If this Policy is endorsed to irclude Time Element coverage, the Company shall not be liable under t such Endorsement(s), as a result of a single earthquake or other covered occurrence in Alaska, California, Hawaii or Puerto Pico, Ior rr,ore than the amount by which such Time Element loss shall exceed per cent °b) of the full annual Time Element value which would have been I earned fn the twelve-month period following the occurrence by use of the facilities at the location where the physical damage occurred, and then only for its share of such excess If the insurance provided by this Endorsement covers more than one location, this deductible percentage shall apply separately to each such locatir n, ADDITIONAL EXCLUSIONS 3. This Endorsement does not apply to property in transit. 2 This Endorsemen' does not Insure against loss or damage caused by or resulting from flood waters, waves, tide or tidal water, or by the rising, overflowing, or breaking of boundaries of natural or F man-made bodies of water, or spray from any of the foregoing, all regardless of cause. 3. Untessotherwfseindicated below, this Endorsement does notapplytoanypropertycoveredunderthfs Policy by virtue of arty Automatic or Floater Coverages attached •o this Policy, r. ~ I I j .j Farm 7700 f Facl°ry Mutual Scrvicr BmPau P IF I Or 7 i 15d,110" Naw°°d. Mauachueeu15d,110" Marco 1981 Gan -.n r t AUTOMATIC COVERAGE { Insured this block is checked, the coverage provided by this Endorsement is extended to cover property .J Insured under this Policx by virtue of any Automatic Coverage Endorsement attached hereto, subject to the Limits of Liability set forth in the Automatic Coverage Endorsement. FLOATER COVERAGE If this block is checked, the coverage rout u:3ured under this Policy by virtue of any Floater Cded by this Endorsement is overage subject to hs Limits of Liability applicable to f Floater Coverage. T k d ` °r ;.~a!. ~,rar L t .^Y, I¢ 4 M 4. V yY r i rSSryy , t ~ j3 `r .isa v a " I r ' r !7 a t'-,r i .w , f 1 j' I T k Foci" MAUIU Service "Ski #y Fbrwootl. Ma1wN' I1 oAOE 10f 2 Edd'an March 1981 PAINTED IN t r " . f° 1 i y FLOOD ENDORSEMENT In consideration of additional premium, the Policy to which this Endorsement is atterhed is extended by deleting the following exclusion No. 8 in GROUP A of Part C. EXCLUSIONS: 8. Floodwaters, waves, tide or tidal water, the release of water, the rising, overflowing, or breaking of boundaries of natural or man-made bodies of water, or the spray from any of the foregoing, whether or not caused by, resulting from or contributed to by loss or damage of the type insured under this ; Policy, unless damage by fire or explosion results, and then the Col npany shall be liable for only such resulting damage; LIMITS OF LIABILITY This Company shall not be liable under the terms of this Endorsement for more than j each single occurrence nor for more than $ during any twelve consecutive months. I! - this Policy Includes Time Element Coverage, or Automatic Coverage, or Floater Coverage, the foregoing limit shall be the maximum amount collectible under this Policy. ADDITIONAL EXCLUSIONS 1. This Endorsement does not apply to property in transit. 2. Unless otherwise indicated below, this Endorsement does not apply to any property covered under j this Policy by virtue of any Automatic Cov:+r,+,,e or Floater Endorsement(s) attached to this Policy, AUTOMATic COVERAGE If this block is checked, the coverage provided by this Endorsement is extended to cover property z insur6d under this Policy by virtue of any Automatic Coverage Endorsement attached hereto, subject to the Limits of Liability set forth in the Automatic Coverage Endorsement 2 FLOATER COVERAGE I If this block is checked, the coverage provided by this Endorsemeni is extended to cover property 1 Insured under this Policy by virtue of any Floater Coverage, subject to the Limits of Liability applicable to Floater Coverage: { x, =1tN •i ~ ' a, 1! I i. 4 G I , x I .j f f, / 1 " N y a q III ~,A , Form 1701 Faerory Mulual Cameo Bmaau PAGE 1 OF I ENV$ Malch 1991 + { No(wood. Maaaaihutatll DRINTEO IN U 9 A. A. I s BOILER AND MACHINERY EXCLUSION fIi The Policy to which this Endorsement is attached, is amended as follows: ADDITIONAL EXCLUSIONS 1. This P.Jlicy does not insure against loss or damage caused by or resulting 6om explosion in, or of steam boiiers, stearn turbines, gas turbines, steam engines and steam pipes interconnecting any of the foregoing equipment owned, operated or controlled by the Insured, however; _ liability is assumed for loss or damage resulting from an explosion: A. of gases or fuel within the furnaco of a boiler or within the flues or passages therefrom; B. involving the smelt bed within the furnace of a boiler of thg chemical recovery type; = C. outside of any equipment t' 2, This Policy does not insure against loss or damage caused by or resulting from rupture, bursting, cracking, bulging, burning or change of temperature of steam boilers, stearlt turbines, gas turbines, steam engines and pressure vessels, or piping or apparatus attached to any of the foregoing equipment owned, operated or controlled by the Insured, however; I liability is assumed for loss or damage resulting from accidental discharge, escape, leakage, backup, orovedlow to the open of any material from confinement within piping, plumbing systems, lanks or equipment, except from that equipment identified in paragraph "1." above, located on the r described premises. 3. This Policy does not insure against mechanical or electrical breakdown (except by direct lightning damage) of any equipment, unless physical damage not excluded results, in which event, this Policy shall cover only such resulting damage J~ er r' f7 ~ 11 i+ 1 , } tf''., f r 1 1. ,r r, wl a f ~ Form 1700 Factory Mulue Service Bureau PAGE I OF I Edihan January 1977 Norwood, AlMICNS1110 PAINTED IN UTA 444e„. k i s i r f 1 + 5 I Lt ~ 3 , e , ATTALKHENT B 33 yi i Y tL 1 ! .I ~ 1 1 r ~~;FF. 1 ~~~1 3 i ' ~3 A3r n~ i` 1 1 1~ I P; T Y ~A ! 3 a{ .4 F r ~~u yh ~A 'i iqFd b~ x!17 ~ i ! f=r 6 t! Fl, 10 tn';'1 i. r L- r~lt. r`l~If~Y 1 T! + !3 t l I I 1 pMk~ I t 1 iF ' Q f "Tf , y4 r +1 L, L., ',r 4r S 'i irk' ear r, $ ~yy' r L I err , 44 r: .I r r Q ~e ATTACIIMENT 8 ARTHUR J. GALLAGHER & CO.-DALLAS i 1 August 13, 1987 City of Denton Re: insurance Proposal/Renewals ! l Slrss Ska Essentially our renewal is on an "as is" basis with carriers, terms, and conditions remaining virtually the same. You will note some changes In the retention, foss fund and exposures. As always, we welcome your questions, and we look forward to haying the o r to discuss our program and all available options in depth. g P)ortunity i ^ 4 t r } Respectfully, Leonard Account Executive Enclosures t ay ~q}il~ f ~~1r. . `Ytr~ .r~ti l` i' t ~ Yi II i 1 f ~i y ti si~ E~ L ~ ~-~!liln j' p t ~ X l r is ail f 13281 Vent Cri're Sul:a 3T1. C. i,'.i; - 14,991-37W PAX 9 i'J-88i-.1341 i4. TLFX: 214.991.4081 i' 11 !j I I ARTHUR J. GALLAGHER & CO. t ~ Airport Liability Policy i i Global Aviation Insurance Cities Exposure $ 1,000,00 C.S.L. Limit ' j (Conth,gent Liability', 8,008 Premium A l Southeastern Aviation (Texas), Inc. nit - $1,000,000 C.S.L. for premises - Products Liability € $ 50,000 any one aircraft 150,000 anyone occurrence . } Ground Hangar Keepers' Liability { 1~ y I ' A "f Annual Premium - $15,000 tx For $5,000,000 - $24,000 ti ~a a « 4 ' f fix ' 9F f l a ! n 1 3 v. 4..v". hLk NF y lyt 5y a t ~ r r /t k 1 r 44 OW +rl . I 4 " I 4~ IY 1 V 4 { 1 I 1 r ~ 11I 1 E r, Ail f ATTACHMENT C r rl I.! r 1 V IP.' 1 13 1 t 4 MI v ! t 1.~ _44 L 1 IJ J~ ~ V f~ y r Hwy!` ,e'.; I { ,err i a 1 ~ I 1 11'w{ 1 "t y 7.} 'y~a r,p 5 S r+ t 4 ~ 1Y 4Fr 1 ',6 ~ r 41 r ;a Vogl "doll so "o"0104 i j EIYIPLOYep9 Ca9UQLTY Company EMPLOYORS NaTlonBL inSURance COCY1Pa1'1Y iI I POST OFFICE BOIL 21911 OALtA9, TEXAS 79271 { August 12, 1987 f I r ~ Mr. Harlan Jefferson, Risk Mana&er City of Denton 401-B Texas St, Denton, Texas 76201 Y• Rel City of Denton Cl P1 Compremns_:_ve insurance Proposal Dear Harlanl We are pleased to submit the attached proposal for the City's Property and :asuslty Coverage. You will notice that the coverage for your Airport is z not included. Your current carrier is our beat market for this coverage. r. Wo se.it a;plications to several other markets but received no quotations. ?,f if we are awarded the other coverages, we can have your current rolicy trans- it farred to our company with a letter of record from the City. Also we have not included a quotation for the Money and Securities b Employee Fidelity. Wo use the Fidelity and Deposit Company of Maryland for this coverage. Although we were unable to obtain a quotation at this time because of lack of some ` information and the time factor, this coverage is available at a minimal cost. The physical damage coverage on your vehicles still needs to be worked out. We have several options to choose from but none of them were exactly what j your bid specifications called for to we felt that it would be better to I discuss this coverage further with you before quoting it. We feel we have an excellent program and if you should have any questions about our gtito a please call me at (214)760-6616. Yourss ru ttrulAy, h n _ Q~ 0 0/yGA Carolyn Osborn, CPCU, AAI r.' Risk Management Services CO/jw q 1 ~ I , i tr' EMPLOYERS S #SUKWA OF 7ExAl trt+ + n,+a,w,mro+e, Cenroq' I t or, NtlbnM Uh Imurrw tMVU7 f Y' tow tn+Yaro,' h,u,w~ 11u,euea+ I tnwb~«+e..+n, tan+oMr ( - Yw•P,W n-- .w ..rv 1 + A il' CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PLAN t ° 1 Programt Texas Political Subdivision Vorkers' Compensation Joinc Insurance Fund r j Estimated Annual Standard Premium - $828,978 1 Contracted Services Cost ` 1. Claims Handling Services 7.52 of paid losses 1 2. Administrative Services 3.0% of first $100,000 of Stnd. Prem. 1.5% of next $400,000 of Stnd. Prem. 0.75% of Stnd. Prem. over $500,000 Not to Exceed Overall Charge of $25,000 3. Safety Engineering Services 1.52 of Standard Premium q; 4. Catastrophe Reinsurance (To indemnify the Fund Member of losses for any one accident or A s' occurrence in excess of a pre- : determined retention by the Member up to a mi,timum limit d of $10,000,000 per accident or t occurrence.) ' at $200,000 Retention 4.3% of Standard Premium Per Occurrence df; ^ at $250,000 Retention 3.7E of Standard Premium Per Occurret.ce r at $300,000 Retention 3.3% of Standard Premium Per Occurrence S. Aggregate Stop Loss Reinsurance @ 100% 2.5% of Standard Premium All (To atop aggregate losses from 10-1-87 through 10-1-89 at 100E of aggregate standard premium over same period up to a maximum ' liability of $5,000,000.) Aggregate Stop Loss Reinsurance @ 1252 1.6% of Standard Premium of aggregate standard premium from 10-1-87 through 10-1-89. vn" rcpt r~ /A' P A S pp 4 , n r : .f a : L r v i CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PROPOSAL Programs Texas Political Subdivision Workers' Compensation Joint Insurance Fund i Estimated Standard Premium ;828,978 i 1 , Contracted Services Annual Cost I 1. Claims Hendling Services 7.5% of paid losses 2. Administrative Services $11,467 M, t` 3. Safety Engineering Serviceo 120435 44 Catastrophe Reinsurance r $200,000 Retention 35,646 ` Per Occurrence r Y,~d @ $250,000 Retention 30,672 k t ) Per Occurrence $300,000 Retention 27056 pb Per Occurrence 5. Aggregate Stop Loss Reinsurance 20,724 q @ 1001 of aggregate standard premium from 10-1-87 through { @ 1252 of aggregate standard 13,264 " premium from 10-1-87 through rt 10-1-89 " Notes Claims Handling Services and Safety Engineering Services will be provided by Employers Insurance Of Texas out of their Sherman ' .fi ry t District office. 'I41 Reinsurance will be provided by Employers Casualty Company, r a . f . I I a' I k Y ' I. J i 1 I CITY OF DENTON CASH FLOW PLAN COST ILLUSTRATION E Standard Premiums. $818,978 Loss Ratiot 301 401 501 1. Losses 248,693 331,591 414,489 r ' 2. Claims Handling Expense 19,ri52 24,861 31,087 3. Administration Expense 11,467 11,461 11,467 t 4. Safety Engineering 12,435 12,435 12,435 S. Ce.tastrophe keLtisurance Up to $10400,000 Maximum Limit) $2000000 retention 35,646 35,646 35,646 per occurrence 0 $2509000 retention per occurrence 300672 30,672 30,672 di'l A $300,000 retention 21,356 21,356 27,356 per occurrence 6. Aggregate Stop Loss Reinsurance 20,724 20,124 20,]24 @ 1002 TOTAL ULTIMATE COST 0 $200,000 $347,617 436,732 325,848 ~ 4 y :J RETENTION F"f +'STAL ULTIMATE COST Q $250,000 342,643 43t,738 820,874 RETENTION r^ art'' TOTAL ULTIMATE COST 0 $300,000 $339,321 428,442 517,558 x RETENTION ^y • ? r v r % imp ~ )aJ 7• W'f fro ~ ~ ~ .r~ ^ .f + I yN , ' h ~ w'.ww._ v n. .'K Y:n!f l,$ f gyp,: y:• ftiaL ~ 1 '~~~.f.Xm r r TEXAS POLITICAL SUBDIVISIONS riUhKtttp l ulylrtlv~,al Wiv ~u uvt uvov n.aiw~ rvi. J PRE+AIUM WORKSHEET FOR City of Denton rtT.'d- CMeifieetiun Of Operet,or+e lye. [n~pnetsd Manuel AttM IMletivl 1_1.8] Fund yelp 10.1.11/1p•L17 or 0rep Role lop 114enu11 Strip. ►eyporl11 1100 Pay fall Afmium 7113 AlmortOa+er,om11 19,444 4.50 87 Ie31 Aeumellhegeq 135, 1,80 2,441 4791 AVIOP"c lle Over 2 , 720 4.80 13,043 7360 SOckmebitt Drivers - _ 9029 Iundinl0oenaea 89,864 7.14 5.54 4 978 9120 Cemetery Ooerso I 9.18 p10 Cync11-Ofnn , , 36 15 519 1720 County Avorawl Datnet 1.40 7636 Ibctria Dint Dution 2,974.66 P 1,96 58 7702 Flnmtn 2 4 13 210 7102 011 Dlnribue.on 2.03 6227 Hleay Ieulprnen11 Wintenenef 6123 HCWip1 ProtNliOnlfe 4.88 1.50 9020 Haplu4-Ala 0eMr1 j 9037 Nowt np Authariry 0001tiams 8.23 j 2619 Inert I1luenlnsti0n 4.39 Ali Llenr4e and Muwume 5.3 520,744-- 4 2 2 3 1722 Mauen2en,80tielWOrken,ete.llleetldOfLeipll .73 1 j ` 1109 100014011 Imploveet INOI Othtpvyile Crawhtdl 13.64 I 9010 Municipal Gail Cownd 4 i 7620 Multici011 WetfnvOrkl Castellon 3721452 i 9142 ►1 and Recrreuon 4.76 17,729 L 000 308 4 7411 Pilots 7720 FOI eelnen 5.03 50,315 1190 Rldeendllecrricwinti::utienr 2021,444 LI Ij,211 MO3 Refvw Couwt en e d 6.37 Di0oal - ConNetlOnel 414.668 5 9404 RNun Collfeuoa Ind Dgtoam, - puny COntl~nfnlfd 309 760 Re!jd Meuet en l48 110,392 lower 9359 onuroeton 10,277 - 9.31 1 , 29 7110 $m pl Tro tment lent 08 13,51 22,188 1101 /tM 1 and Flood Rfpoe 24 2 M02 Ilreel M/ r Cglninl 4,795 I1184 hwpn: ial 12.69 9164 Tneeppll All Ot"t Inlplovoot 1.47 1 n w WWII and troll 146,918 LAI 8.44A 7752 Transit Autheriry ~8311 "ll cvw Bit ear tin net Neuam - 11 Is an 7,968 IM z apple, Ott Ir1I1 dN rl 1437 BuuI din Ina ect l E 9.60 114,740 'tILYZ Warehouse Operations 'Any nfhronw p en InluronM •nn na opdineAly a plrl el wH•inunnn 1. TOTAL MANUAL ►RIMIUM 828 a ll M dwT1d 16 111 fast edtyenlenel Mly end N nw to a eDnltrued le eon l4q to the wlfJprweell nyllpe, 21 YOUR IXHRIINCI MODIFIIR 1.0 f Use peaspeyroll en NI eeploywl. 3. LINE i X FACTOR ON LINI 2 • STANOAAO FAIM. 828 918 Foe Away 2rrviovw11 that ego paid "punt, uw only the $fraight timt 2. FUND DISCOUNT FACTOR Pets tlmt11 111 hell w0pktd. 1. LINT 7 X FACTOR ON LINT 4 • Ill PRIM. 11 Is wr Inpnt 1e 2rtcpl voruot rv Comptl fop J d 44414d efl ant Inimnfd hlmwm (Llnt 51 Payable 12 peel monq, Inrr111menn; of One 6 vol. firemen L J pohq reMMt. ,6e11M1n,e O'OnL y I N 1661 then 15,0001h1 fY11 phID11 premium it pay 101f in four It1u11 eulrtuiy uuteunwns. ! 33 p4ro11 Y wr bat ■Dmlq for dq fun/ ywr ending 141-17 i I eranee o~tl j i b . BYLAWS OF TEXAS POLITICAL JS0 B ~IIISIONS WOFUNOS' COMPENSATION i Board of Trustees The Texas Political Subdivisions Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") shall be governed by a Board of Trustees. The Board shell operate the Fund on behalf of the Fund Members j pursuant to bylaws and shall be composed of the members appointed in the manner hereinafter set out and shalt have the further functions, powers and duties as herein set forth. f 3 V. Original Board ' The original Board of Trustees shall consist of nine (9) members who shall be appointed by the political su W ivlsions originating the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund at the r same time the Fund is created. The original Board shall serve for a period of sixty (60) days or until their successors are qualified. A permanent Board of Trustees, as herein described, shall be elected by the Fund Members at an election set by the original Board, to begin serving terms on December 1, 1983. 3. a Pcrmaflent Board Qualifications The majority of members of the permanent Board must be either an S141 , 71 employee or elected official of a political subdivision within the State of i w~~rr Q , y r j 1t . Texas which is a Member of the Fund. Any Board member that ceases to be in employee or elected official of a Member of the Fund shell automatically be disqualified to serve as a member of the Board, and his position shell become vacant.' 4. Number and Term of Permanent Board The permanent Board of Trustees shall consist of nine (9) members elected by the Fund Members. Each member of the permanent Board shall be elected to occupy a designated place. Those initially occupying Places Nos. 1, 2, and 31 shall be originally elected for a term to expire on December 31, 1984, or until their successors are qualified. Those initially occupying Places 46 5, ad 6, shall be originally elected for a term to expire on December 31, 19850 or until their successors are qualified. Those initially occupying Places 7, 8, and 9 shall be originally elected for a term to expiry on Pecember 31, 1986, or until their successors are qualified. a ~ After the initial election of the permanent Board, the Fund shall ! conduct a regular election annually by means of a mail ballot involving all Fund rembers. Each election after the initial election shall be for a three-year term . No person shall serve for more then two (2) consecutive r terms, At the time of the election, the Place to be filled tbrae Yea , shall be designated. When a Board Member vacancy occurs due to death, resignation, dis- qualification or inability to act, the Board shall appoint a replacrment to # serve until the next regular election At that election, the fund Members shall elect the permanent replacement wiro will serve the remaining period in the term of that designated Place. s' 2 t ~ i ,v. 1 / t ,,,:..x. r,.._.bi'«nWd`~.A,w~M.yYgyW ♦.rs•.x.l :.z:..a r'r r a f Election of Officers- Meetings i t Within fifieen (15) days after the initial election of the members of the permanent Board of Trustees, and annually thereafter within ninety (90) days after the regular election of Trustees on a specific date set by the loard, the Board shall hold a meeting for the Purpose of electing officers for the ensuing year, and the transaction of such o•1- business that may cane before it. The Board shall hold at least three meetings annually and such other meetings as may be necessary for the transaction of its general business, when called by the Chairman or requested in writing by any three (3) Board members. The meetings shall be held at any convenient place in the State of Texas according to proper resolution of the Board designating s.rne. err r, Officers: Ouorur i The Board shall organize by electing one of its members as Chairman, t r - and another of its members as Vice-Chairman, The Board shall designate a t Seceetary to keep the minutes and records of the Board, who may or may not be a member of the Board Itself. A majority of members of the Board shall constitute a quorum. Concurrence of a majority of the Board shall be ' necessary for any official action taken by the Board. Members Compensation- Reimbursement # The duly elected, qualified and acting members of either the original or permanent Board shall serve without compensation, but shall be entitled A Y N 3 jya :r to reimbursement of actual expenses incurred in the performance of their official duties upon the approval of such expenses by the Board, Powers and Duties The Board, in addition to other powers and duties herein conferred and imposed or authorized by law, shall have the following powers and duties to-wit: j A. The e;,erd may contract for such professional services as it may deem necessary and shall fix the time, manner and payment therefor, B. It shall be authorized to contract with any oualified organization to perfurr:, any of the functions necessary for the carrying out of c a self-insured workers' compensation pool arrangement, including reinsurance, claims, administration, safety engineering services, administrative services and any and all other services that the Board shall dean expedient for the proper servicing of ".hose Fund Members who use the services of the Fund, C. It shall make provision for proper accounting and reporting procedures for each of the Fund Members so that they shall be apprised at all times of the nature of the claims arising within their jurisdiction, the manner in which these claims are being handled and the impact of the same upon the Fund. E D. It shall provide for annual audit of the books of the Fund to to supplied to each of the Fund Members as may be requested. E. It shall carry out all of the duties necessary for the proper operation and administration of the Fund on behalf of the Fund Members and to that end shall have 01 of the powers necessary Ir 4 I y' .r s. i and desirable for the effective administration of the affairs of the fund, F. It shall arrange for the investing of the monies of the Fund so r as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the Fund !embers. It shall provide for the banking of the monies of the Fund and the proper security of any and all investments. G, The Chairman of the Board rhall appoint an Executive Committee of F the Board to handle the affairs of the Board in between the •egular Board meetings or any of the called Board meetings$ with such functions as may be designated to the Executive Committee by the Board by resolution properly adopted. j i H. It shall have the authority to terminate membership of any Fund Member that falls to abide by the reasonable requirements of the ;I Board concerning payment of dues and contributionst installation of safety requirements, cooperation with the claims agents or attorneys representing the Fund or any of the Fund Members• or 5 any other action that may be detrimental to the fiscal soundness ' or efficiency of the Fund on behalf of its Fund Members, i , 1 1. It shall develop and prepare a contract to be signed by each of the Fund Members as they join the Fund and shall determine the j amount of reinsurance that shall be purchased by the Fund. .w + I J. It may require the securing of a fidelity bond upon each and all of the employees of the Board or upon other persons charged with ' the duty of handling any of the monies or investments of the Funi. a.. w K. It may hire attorneys$ accountants or such other professional j „ y persons that it may deem necessary for the proper protection of r I par........ . _ i. J,. 1 r ri w ~.a .i» 1 l 5 i the Fund. These persons shall he paid as provided in the contract for hire as executed by the Board. L. It shall provide for a suitable seal with the following letters upon its fart, 'TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND." The seal shall be used for the authentication of legal documents, contracts and other lnstr-.rlnts indicating the official action of the Board, i M. The Board shall have the general power to make and enter into all contracts, looses and agreements necessary or convenient to carry out any of the powers granted under these bylaws or by any other law. All such contracts, leases and agreements or other legal documents herein authorized shall be approved by resolution of the Board and shall be executed by those individuals designated in such resolution, In the absence of such designation they shall be executed by the Chairman or %.ce Chairman and attested by the Secretary of the Board. s Fund Nembers Any political subdivision within the State of Texas is eligible to become a nemb.:r of the Fund. Each of the Fund Members shall be required to pay to the Fund the contribution as provided by the contract between the Fund and the Fund Member. Failure to pay the contribution as and when due sha11 render the axmbership of the FunA Member subject to termination by " action of the Board, For the proper protection of the Fund each Fund Member sha11 be required to make such reasonable safety regulations and take such safety precautions as may be required by the contractor representing the Fund. In the event that there is any disagreement between the Fund Member and the contractor, the Fund Member shall have the right to appeal to the Board and a decision of the Board shall be final, Fri 6 ~ 1 Fund Year Titre fiscal or fund year for the Fund shall k from the 1st (-ay of October of each year and ending on the 30th day of September of the succeeding j year. i I c 11. Withdrawal From Member hi Any Fund Member may withdraw from the Funi at the end of any fund year by giving at least sixty (60) days notice in writing to the Board of its r desire to so withdraw. The Fund Member withdrawing may not withdraw the reserves on ,;,y of the claims that are being paid from the Fund or will be required to be repaid from the Fund, The Fund shall continue the servicing of any claim pending after the withdrawal of the Fund Member unless the Fund Member specifically assumes the liability and makes provision to indemnify the Fund fren loss by taking over the servicing of the claim. a' 12. Mundments to B za s ;s These Bylaws may be amended by the Board of Trustees of the Fund after notice of the proposed amendment has been mailed to the embers of the board of Trustees at least ten (10) days prior to the day of the meeting to consider some. The Board of the Fund shill recommend such changes as it deems necessary or desirable On tims. to time. q. 41 j ~p ] f v i TEXAS POLITICALJSUBDDIIISIONS MRKER FUNDS' COMPENSATION (Flexible Lost Plus/Cash Flow Plan For Large Political Subdivisions) INTEP.LOCAL AGREEMENT This Contract and Interlocal Agreement entered into by and between the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") and the undersigned political subdivision of the State of Texas (hereinafter referredeto asprescribed Member") for the purpose of providing the statutory by Article A309h of the Texas Workers' Compensation Act for employees of political subdivisions. UITNESSETH: The undersigned Fund Member in consideration .f the adoption of a plan of selfo toaproviddeaWorkers' Compensation8benefitsratnasminimunted Texas Statuteses, subdivisions cost and in further consideration of other political executing similar interlocal agreements does hereby agree to become a self-insured workers' compensation employer by becoming one of the members the F parties •arehe conditions of membership agreed upon by and between the P as follows: 1, Definition of toms used in this Interlocal Agreement, E a, "Board" - refers to the Board of Trustees of the Texas Political Subdivisions Workers Compensation Joint Insurance Fund. b, "premium" and '"Contribution" - are used Interchangeably in some parts of this Interlocal Agreement. "Premium" is used to identify the rating formulas established by the State Board of Insurance, which are used is guidelines to establish fund Members' cash contributions to the fund, Any reference at any time in this Interlocal Agreement to an insurance term not ordinarily a part of self-insurance i shall b. deemed for ccnvenience only and is not to be construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretation such as b~jt not limited to the reference to "reinsurance". i c, "Servicin Contractor" - Texas Employers' Insurance Association. i d. "Manual Rates" - the basic workers' compensativ ratrs I applicable to each classification of employees promulgated by the State Board of Insurance. e. "Manual Premium or Contribution" -the premium determined by a plying the manual rate of each classification code E to the payroll in that classification. It is tha Qross 3 premium before any modifiers or discounts are applied. G I li f 1 , ; riencehandfiscbasedeon f.' FundeMember's oindividual t loss fexpe)r whi the State Board of Insurance experience rating plan. g~ "Standard Premium or Contribution" - the amount that is determined by applying the experience modifier of the fund Member to the Fund Member's manual premium. While this premium figure under the Fund Member's self-insured "Cost Plus" plan does not reflect payments or charges made, it does serve as a desirable benchmark and allows the Fund Member to compare its results with other entities of comparable size. h. "Fund Year" - October l through September 30. 2. This Contract shall commence at 12:01 a.m, on the date shown as "effective date" found on the signatory Page of this contract, and shall remain in full force and effect until terminated as hereinafter provided. This Contract may be terminated by mutual consent or by sixty (60) days prior written notice by certified mail of such termination by either party. II 3. Annually, each Fund Member shall submit to tha fund on a Premium Worksheet form supplied by the Fund, its estimated payroll for each classification of employees. The rates established by the State Board of Insurance shall be applied to arrive at a manual premium. If the Fund Member has established, through experience, a modifier, then the experience modification of that Fund Member shall be used to arrive at the standard premium. In the absence of an earnel experience modification I for the Fund Member, the manual rate as established by the State Board of Insurance will be used as a guide to produce a manual, as well as a standard, contribution. The newly enrolling Fund vember who has not previously been a member of this fund or the Fund Member who has not previously operated f under this "Cost Plus" plan, agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, an initial deposit of one (1) month's estimated paid losses plus 1/12 of the administrative service f charge, catastrophic excess of loss excess insurance/reinsurance charge, aggregate excess of loss excess insurance/reinsurance charge, and the safety engineering charge (if applicable) as set forth in Exhihit A attached hereto. On or before the beginning of the second month after the inception date of this Interlocal Agreement, the Fund Member agrees ! to make an identical payment as determined above. On or before the beginning of the third month after the inception date of this Interlocal Agreement, the Fund Member shall pay an amount equal to the actual paid losses of the first month times (x) the loss conversion factor as set forth in Exhibit A, for CWa s administration services plus 1/12 of the annual administrative service charge, catastrophic excess of loss excess insurance/reinsurance charge, aggregate excess of loss excess inp rannce/ reinsurance charge, and safety engineering charge (if applicable). On ' or before the beginning of the fourth month of this Interlocal Agreement, a similar payment based upon the actual paid losses of the second month eachl anbe aid d to thie Fun with month thereafter,ubasedeupon anthl ctualppaidnlosses, paid { 2 i The Fund Member who has previously been a member of this Fund prior to the inception date of this Interlocal Agreement and has operated under this "Cost Plus" Plan agrees to pay the Fund for those services described in this Agreement and at the charges listed in Exhibit A attached hereto. Each month's billing will include 1/12 of the annual charge for administrative services, safety engineering, catastrophic excess of loss excess insurance/reinsurance, and aggregate excess of loss excess insurance/reinsurance as set forth in Exhibit A attached hereto. Also included in this billing will be an amount equal to the actual paid losses of the Fund Member times (x) the loss conversion factor as set forth in Exhibit A as the claims administration charge. The actual paid losses of the Fund Member are those losses paid by the Fund on behalf of the Fund Member in the month which is two months prior to the billing month. These payments are due at the beginning of the month, that is, for example, the December billing is due at the Servicing Contractor's office on December 1. It is further agreed that those charges (administrative services, catastrophic excess of loss excess insurance/reinsurance, aggregate B excess of loss excess insurance/reinsurance, and safety engineering) $ that are based on standard contribution will be adjustable at the end of ( each Fund Year, based on audited standard premium which is calculated using actual payrolls, manual rates, and experience modifiers. At the end of each Fund Year there will be submitted by the Fund Member actual payrolls as reflected on the books of the Fund Member. The Fund reserves 1 the right to audit the payroll records of any Fund Member. s It is further agreed that the Fund Member will maintain a loss deposit with the Fund equal to two months estimated paid losses and this deposit will be adjustable periodically to accurately reflect realistic E ronthly loss payments. } After termination of this Agreement, the Fund will continue to handle claims with an accident date occurring during the term of this Agreement until such claims are disposed of. After termination of this Aggreement, the Fund Member will pay the Fund each and every month, until a1i claims handled by the Fund are disposed of, only the monthly claims administration charge calculated as described above, and the monthly reimbursement of actual claims losses paid on behalf of the Fund Member as determined above, { In the event that the Fund Member fails or refuses to make the payments of charges as herein provided, the Fund reserves the right to terminate such Fund Member by giving ten (10) days written notice by certified mail and to collect any and all payments that are earned pro rata for the period preceding contract termination. ' 4, The Fund has obtained specific excess of loss excess insurance/ i reinsurance and aggregate excess of loss excess Insurance/ reinsurance on behalf of its Fund Members. The excess insurance/reinsurance protection is, however, optional with the Fund Member. If the Fund Member elects this protection, its election shall be indicated on Exhibit A. r, 3 (I d 1 5. The Fund has contracted with the Servicing Contractor to supply safety engineering services to the Fund Member to assist them in following a plan of loss control that may result in reduced losses. The Servicing Contractor shall provide all of the services as provided in the service contract entered into b and between the Servicing Contractor and the Fund or as may be modified for the individual Fund Member. The Fund Member agrees that it will cooperate in instituting an) and all reasonable safety regulations that may be recommeneed for the purpose of eliminating or minimizing hazards that would contribute to workers' compensation losses. In the event that the recommendations s9bmitted by the Servicing Contractor on behalf of the Fund seem unreasonW l , the Fund Member has a right to appeal to the Board of Trustees. The Board shall hear the objections of the Fund Member at its next regularly scheduled meeting and its decision will be final and binding on all parties. The safety engineering services provided are, however, optional } with the Fund Member. If the Fund Member elects this service, its it election shall be indicated on Exhibit A. 6, The Fund Ilember agrees that it will appoint a workers' compensation coordinator of department head rank, and that the Fund and Its Servicing Contractor shall not be required to contact any other individual except this one person. Any notice to or any agreements with the workers' compensation coordinator shall be binding upon the Fund Member. The Fund Member reserves the right to change the coordinator from time to time but when doing so agrees to give written notice to the Fund. 7. The Fund, through the Servicing Contractor employed by the Fund, agrees to handle any and all claims after notice of injury has been oiven, to prepare all required Industrial Accident Roard forms, and provide a defense. The Fund Member hereby appoints the Servicing Contractor as its agent to act in all matters pertaining to processing and handling of workers' compensation claims and shall cooperate fully in supplying any information needed or helpful in such defense. They shall carry on all negotiations with the insured employee and his attorney at the prehearing conference and negotiate within authority previously granted gy the Fund. If a personal appearance by a representative or a co- employee is necessary, the expense of this appearance will be paid by the Fund Member. The Servicing Contractor will retain and supervise legal counsel on behalf of and at the expense of the Fund necessary for the prosecution of any litigation. All decisions on individual cases shall be made by the Fund through the Servicing Contractor, which includes the decision to appeal or not to appeal an Industrial Accident Board's j final ruling and decision, However, any Fund Member shall have the right in any case involving one of their employees, to consult with the Fund on any decision made by the Servicing Contractor, The Board shall € hear the objections of the Fund Member at its next regularly scheduled I meeting and their decision will be final and binding on all parties, Any suit brought or defended by the Servicing Contractor and the Fund shall be in the name of the political subdivision. Notwithstanding any j provisions of this paragraph, all reports and filings required by the E f 4 i i i I I Workers' Compensation Law and the Industrial Accident Board of any employer will be the responsibility of the Fund Member. It is further understood that this agreement does not cover discrimination suits under Article 8307c.. There shall be supplied periodically to each Fund Member a computer printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year. 8, The Fund Member acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any amendments thereto. 9. The Fund agrees that all Fund transactions will be annually audited by a nationally recognized, certified public accounting firm. E II 10. The Fund Nember agrees to pay any Industrial Accident Board i maintenance tax that may be imposed and the Fund agrees to file the necessary tax forms with the Internal Revenue Service. 110 Any party hereto paying for the performance of governmental functions or services shall make payments therefor from current revenues available to the paying party. ' 12, The fund further agrees to provide a complete range of admini- strative services to include, by way of example, but not of limitation, the following; a. Statement of claims printouts rendered monthly and keyed by designated functions or departments. b. Monthly billing statemen6!, for reimbursement of current payments plus contracted fees. 'r c. Semi-annual printouts of all claims including prior Fund Years indicating current incurred loss valuation, d. Maintenance of loss and payroll statistics for determination of the Fund Member's experience modifier, 13. The Fund agrees to provide Employers Liability Insurance coverage (commonly called coverage B), in accordance with and to the same extent as, the provisions of Part Two-Employers Liability Insurance of the standard Workers Compensation and Employers Liability Insurance s approved by the Texas State Board of Insurance, including the Policyk4 Texas ndatory Endorsement as it is applicable to such Part Two, except as follows; as In Part Two, pparagraph A, 21 the state or territory listed is to be Texas. b. In Part Two, paragraph 09 the limits of liability of this 3 coverage are to be as follows: { Bodily Injury by Accident $100,000 each accident Bodily Injury by Disease $100,000 each accident Bodily Injury by Disease $500,000 policy limit i 5 i 's t t c. It is understood that this Employer Liability coveragge does not cover discrimination suits under Article 8307c. d. References to "workers' compensation" in this Interlocal Agreement shall include Employers Liability Coverage unless the context clearly shows otherwise, All other provisions of this Interlocal Agreement shall apply to this Employers Liability Coverage unless the context clearly shows otherwise. e, The Fund agrees to provide at no additional charge Employers Liability Coverage at the following limits: Bodily Injury by Accident $100,000 each accident Bodily Injury by Disease $100,000 each accident Bodily Injury by Disease $500,000 policy limit If the Fund Member elects higher limits than this, the fund Member agrees to pay an additional charge for the higher limits at a mutually agreeable rate. The higher limits and corresponding charge, if so elected, shall be indicated on Exhibit A. 14. No accidental errors or omissions upon the part of either party shall relieve the other party of its responsibilities under this Agreement, provided such errors or omissions are rectified as soon after discovery as possible. The Fund shall not be held accountable for any ` increased cost or expense to the Fund Member under any contention that a claim, safety engineering, or an administrative service could have been C " handled differently except that the Fund may be held accountable for any deliberate or willful failure to carry out reasonable instructions of ~ the Fund Member with respect to a specific matter. 15, The Fund Member will be solely responsible for future benefits payable and for funding its net reserve. The Fund Member agrees to hold the Fund harmless from any and all claims (including attorney fees) that may be asserted against the Fund for the non-payments of any claim due to the failure of the Fund Member to maintain adequate reserves for the f payment of claims. P i w Y~ 1r p. II t 1. 1 l - 1 t~ P y 1 } , r IN WITNESS WHEREOF, the parties have hereuneh15et their hadnayso y their representatives thereunto duly authorized i Contract Number i 1 TEXAS POLITICAL SUBDIVISIONS „ i WORKERS' COMPENSATION JOINT INSURANCE FUND 1 t; BY ecretary un 'Effective e e Dallas, Texas 1 A r ~ v., !f l ~ t FOR un em er ame 'ikt x H' BY ~ ut or ze c a Signature 6 Title . " , Texas Y, The Workers' Compensation Coordinator _.5., for the Fund Member is: t COORDINATOR ' E FUND MEMBER ~ •NAME 1~ f tj ' `A4DRES5 ZIP 5 CITY M TELEPHONE tip. tin<A r ?.~dr• ' . rirwrA Y.< a a ,r SUPPLEMENT TO INTERLOCAL AGREEMENT TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND In consideration of the Fund Members' request for payment of additional benefits and in further consideration of the Fund's • reement to pay such benefits, the Interloul Agreement is amended by adding thereto the following applicable coverages: Volunteers - Firemen, Policemen and Emergency Medical Personnel - If a person within these groups of employees hereinafter described and for which a payroll classification is checked below, shall sustain injury, including death resulting therefrom, while acting within the j course and scope of their official volunteer duties, the Fund will pay I on behalf of the Fund Member the full medical benefits and the minimum f compensation payments provided under the Texas Workers' Compensation Law. i Other Volunteers - Inside and Outside - If the Fund Metter specifi- i tally names volunteers other than those in categories set out above, registers such names with the Fund, and a payroll classification is checked below for these groups of emplo ees hereinafter described, the fund will pay on behalf of the Fund Member the full medical benefits and ~ the minimum compensation payments provided under the Texas Workers' Compensation law for injury, including death resulting therefrom, sustained by such persons while acting within the course and scope of their official volunteer duties. Elected Officials - if a resolution of the governing body has been adopted •providing coverage for elected officials as required by law, and a payrojclassification is checked below, such elate officials while acting within the course and scope of their official duties, shalt be covered by the Interim) Agreement as any other employee of the political subdivision, The Fund Member agrees to pay premium for the payroll classifications checked below; I Description of Grou;I of Employees Volunteer remen Code 7704 Volunteer Policemen Code 7720 Volunteer EM Personnel Code 7720 Other Volunteers-Inside Code 8742 Other Volunteers-Outside Code 3724 Elected Officials Code 8742 The parties to this agreement do not by its use intend to rake applicable to themselves any provision of the Texas Workers,' Compensation Law not already in force and effect as to them, This agreement aAall be i N i subject to all the terms, provisions and conditions of the Interlocal ii Agreement, and-nothing herein contained shall vary, alter or extend any tens, provision or condition of the Interlocal Agreement except as herein specifically stated. This agreement shall be effective on 1 r Contract Number Jued Member By: 1 Signature e l +:s TEXAS POLITICAL SUBDIVISION YORKERS' COMPENSATION JOINT INSURANCE FUND E 'i ?i By. TPS fund Secretary . ~ y ,i 0'4 x t a4 1 ~ ` Al /SJ 4'T.I' oriG , , TJ ~ Y / tirA J 1 / p `n I ~Yk yr1 i•1~ .i 4ooll 1111,11 'y I Oity Of Denton Liability Program Third Party Claims Administrative Service 1 I, Proposal Preface by utilizing an The Employers Insurance Of Texas c3rovp, Adjustment affiliated company named "E+►ploysrs Claims ~ a Services, Inc.-, wishes to offer the City of Denton liability self-funded liability program with third party claims inestigation, adjustment and management services. ` II. Administrative Service Period this rn► of the professional 1service Septemmber 30, 1 The to 990 proposal shall be affrom ter October ,1961 and annually III, Services To Be Provided Igati, ims Invest A. Employers will p&dminlstrationo and°nsettlement management, of Denton recommendation services to ~hbor tths following y (hsrealter called the "City ? l coverage classifications, i, General Liability 2, Auto Liability .r-`. 3. Police Professional Liability 4 Public Officials Liability l . , ~ 1 g, The City will report all claims falling within the coverage classifications mentioned in Section iii, A CO ` employers and shall es, and recordaof flies to include claim co payments for the reported olaime• ` i C. Employers will investigate, adjust, sake settlement half reeonunendsti he negotiate jured thi d parties or -t eir of the city with s duly assigned representative. !1I not exceed the D. The Lmployers settlement authority w ere and the s• mutually agreed value reached between otiationp with the f city previous to settlement nag i injured third party or its duly assigned j representative. The City is to establish a Trust Account e a foes O is to be funded by the fuo nd,hiTru ttotcoiaims y!rsy at j s 1. Employers will not be given the authority to issue dratte and/or checks in payment of claims incurred by the City. 2. The City will be soley responsible for funding 'and will agree to maintain the loss fund at a level rneceseary to pay the claims and claims expenses incurred, 3. All cost in connection with establishing the Trust Account and with maintaining the loss fund will be paid by the City. 4. The cost of printing chocks or check requisitions, administration and account reconciliation of the Trust Accounts lose fund will be the responsibility of the City. IF. This proposal does not obligate Employers to providing the City with safety and loss control services. Upon the request of the City, Employers will offer these services on an annuali2ed basis at the expense of the City. 0. The City will notify Employers of any excess insurance applicable to any claim. it will be the City's reaponelbility to report claims whleh may fall within the excess carrier's level of coverage and to make any filings with the excess carrier as required. j H. Employers will supply to the City during the term in which these professional claim services are renderede monthly loss reports, These reports will include a detailed listing of all claims by areas or depar!mes,ts, " loss payments, open reserves, code description by type of losses. Employers will not be responsible for the failure of the City to notify Employers of any claims incident, payment or settlement, or other circumstance beyond Employers control. Should the professional services be terminated for any reason, Employers will be under no further obligation to furnish the City with statistical reports, 1. Employers will not be obligated to prepare on behalf of the City any official reports or documents required by Federal, Stato or Local outhorltiss in connection with claims handling. J. Employers will furnish all standard claim forme { necessary for proper claims administration. .4 e K. Employers will recommend and upon approval by the City retain and supervise legal counsel on behalf of the S City for the defense of any litigation. Any suit y handled by Employers shall be in the name of the City. i This proposal for professional services does not raquirs Employers to provide services to the City for losses or oceurrenoes prior to the proposed commencement date of service mentioned in section II. In no event will Employers have any liability or obligation for work performed or expense incurrc°d by others, M. Appeal of any case will be solely at the discretion of the City. N. The claims files, excepting for the internal working papers of Employers, will be deemed to be owned by the City. Employers will release to the possession of the City all closed claim files. o. Employers will furnish all labor required to perform thn services and will have full control and direction over the method and manner of supervision of their employees. P. Employers will be in agreement with the City l appointing a coordinator and Employers working primarily through this individual for liaison purposes. IV, Compensation i A. Employers will be compensated by the City as invoiced. Compensation will be payable within thirty 130) days of receipt of the invoice. Pees shall be per Addendum I. 1 9. Exclusionsi The foe schedule containel in Addendum I does not included the following items: 1. Attorney's tees, reporters fees, bonds of any nature or type (including but not limitadi to appeal and supersedeas bonds) and court costs. 2. Medical evaginatione and witness fees. 3. OfficiEj documents and transcripts, 4. Photographs, official reports and appraisals, S. Expert's fees, subrogation investigations and sub rose investigation. S. Extraordinary travel expense, incurred at the City's request. 7. Safety and loss control expense. 8._ Any extraordinary expense. and v.• Any other expense not expressly assumed by Employers. The City will pay expenses of this nature from the City's lose fund and Employers will not be required to advance funds on behalf of the City for such expenses. V, Proposal Conditions 1I Pricing for theme third party claims administrative ! services are premised upon the assumption that the City will award its Workers' Compensation coverage to the Texas Political Subdivision Workers' Compensation Program, which is serviced by 'texas Employers'. Should this assumption prove to be incorrect . . , current proposal charges for k the third party services could not be honored and would ' require adjustment. This proposal is only an e"reselon or outline of service intent and will be subject to the finalization of a j contract agreed upon by both parties prinr to the proposed }f commencement date of service. 11 I 1 d I °j WJ F' ! r ` ']ter ) Y• ~ Y M' 'T I ••7C S' R{~ ll y I i i Addendum I Sees And Expenses 1. sae per hour ftir a field adjuster's service 7. 840 per hour for a home office adjuster'o sarvice 3. .280 per mile auto charge f 4. 830 for each claim file creation 6. Monthly computerized lose reports at 8800 annually for each line of coverage recorded. A. General Liability i e, Auto Liability 0. Police Professional Liability fff ~ ` D. Public Officials Liability 6. Employers Claims Adjustment Services has no copying charge ' ' and no separate administrative fees. Special services, I inoludieg but not limited to, out-of-state adjusting firms ` and cervices, reconsttuotive engineering reports, photocopy studies, legal defense, special investigators and witness ' tra;:sportution and lodging fees will be charged to the City , at aotuel cost. j 7, Any sales tax, if applicable. 4 1y"ga , f Its r~ t l } r r' *r TOTAL PAr' ,LAG . na 1+ ~Ft 1 j ~k F i j t I II j 1 Attachment D It i q Y 1 f ~ i r J A ~R t , v 1 4 4, dX ~r li v I 9 7 r q H i a. ilk X V 1(r l T tv y~A 4 ~ ^ q. y k}e t rlry I~ A 1 . ; #Y fi 1 { 4 ,.r 1,4 41 ly . ~rvr r 04 i ATTACHMENT D w NTV of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566-8100 i MEMORANDUM , i 1 DATEt September 31 1987 TO: Lloyd V. Harcell, City Manager L THROUGE1 John F. McGrane, Executive Director for Finance FROMs Harlan L. Jefferson, Risk Manager q . SUBJECTS INSURANCE PROPOSAL r: I Recommendations Ji After evaluating nine property and casualty insurance proposals and the recently concluded actuarial study by the Wyatt Company, it is our belief that the City should self-insure Workers' Compensation and certain liability exposures. However, property coverage and inexpensive liability coverage should continue to be purchased. i~ Justifications As a by-product of the simultaneous increase in insurance premiums and r reduction of liabili_y limits which the City experienced for the last two years, we contracted with the Wyatt Company to actuarially evalutta the feasibility of self-insuring our exposures. Their recommendation is that the . City self-insure its liability and Workers' Compensation risk, within E¢.+` reasonable limits, and seek excess lose insurance above the limits frt,m an insurance company. This recommendation excluded property coverage. The Wyatt Company recommended two financing methods to fund our self-insurance program Ciao., debt financing and annual contributions). The amount of the annual contribution needed is approximately 1,0540465, and we recommend utilising this option as opposed to issuing bonds in the amount of $81000000'r, r r' J . li. 1 f J ti Lloyd V. Harrell September 31 1987 Page 2 The second reason for recommending the self-insurance program is that this is the third consecutive year of increasing insurance premiums we have experi- enced. Although we were fortunate to be utilizing a Multi-peril insurance policy which exhibited far leas premium increases than any other lines of insurance (see graph below), the purchase of commercial liability insurance would represent approximately a $210,666 increase in our present budgeted amount. The graph shows we were very fortunate in the past, compared to other lines of coverages however, continued purchases of coms,ercial insurance would result in dramatic increases. i~ i National Average Percentage Increase In Promium tor 19e5-96 and 199647 M 665 9a 0 m86-P goo i 306 770 e ro 231 900 r' w 100 a7~: 170 104 b y ti 0 V . Three consecutive years of premium increases works contrary to our cost allocation philosophy. Our cost allocation approach normally is as conserva- tive as possible to prevent other funds from budgeting too much for insurance. We accomplish this by setting aside a reserve for claims when they }s k occurs however, payments are sometimes not made until two or three years { later. If division allocations are too lows additional resources can be " allocated the next year. Because the cost of the insurance program is continuing to increase, we are unable to allocate enough to meet the rising costs of commercial insurance. 1 __L Lloyd V. Harrell September 3, 1987 Page 3 Other reasons for self-insuring involve the fact that less coverage is provided each year, the fact that gaps in our coverage exist, and the implications of claims-made coverage. Our liability limits have been reduced from 20,000,000 in 1984-85 to 1,1500000 in 1985-86 and finally to $1,000,000 in 1986-87. Therefore, we are presently self-insured for losses in excess -)f 10000,000. Gaps in coverage exist when two or more insurance carriers fail to provide total protection. It is common that excess insurance carriers may exclude civil rights violations or discrimination claims. Claims-made coverage is another reason we should self-insure our liabilities. For liabilities to be covered by our present claims-made insurance, they must I be reported in the year they occur. Therefore, we could be forced to self-insure claims not reported until later years. Self-Insurance Criticisms our proposed program has responded to most of the typical pitfalls of self-insurance programs for public entities. Public entities have been utilizing self-insurance since the turn of the century. The major flaw being ' that hundreds of thousands and sometimes millions of dollars of property were eel[-insured. Therefore, when major property losses occurred public entities were not able to rebuild structures. There have been a number of studies condemning self-insuring property losses. These studies range from Dee S- S, y I Huebner of the University of Pennsylvania to the League of Kansas I Municipalities and League of California cities. We plan to avoid this error by continuing to purchase property insurance. a The second traditional criticism of self-insurance is that it lacks the sufficient number of participants and ability to spread risks to protect the j fund against large losses. Our proposed program is protected through both actuarial studies and the purchase of excess coverage over certain exposures. i The proposed self-insurance program does not consist of the total retention of our 108014 only the amount which we can financially retain will be eel!-insured. For example, property coverage, and excess Workers' Compensation coverage should be purchased to protect against catastrophic losses. Multi-peril excess liability coverage should also be purchased when , it becomes available. The third criticism of self-insurance programs is that they do not have the services of insurance professionals in either setting up or maintaining their r program. Through the purchase of excess Workers' Comptnsatioa coverage and property coverage, we will still have access to lose control services, lire inspections and claim handling. In fact, with the addition of the actuarial study, more risk management information is available today than at any previous time. The fourth criticism is the concept that the main function of insurance is to replace uncertainty, with certainty. The th.ory is that a small known cost . I !1 A, Lloyd V. Harrell Septembar 3, 1987 Page 4 will replace an unknown possible large loss which can diarupt the City's budget. This line of thought believes that no plan which gives inadequate protection against large losses can preform this functio,,. To respond to this concern, the actuarial study projected losses within a 90% confidence level. The concept also pre-sul•poses that the cost of insurance is nominal. Today's: premiums are actually higher than our projected losses, And finally, insurance is only offered up to the limit of one million dollars. We will still be self-insured for claims above that amount, after purchasing commercial insurance. Another traditional concern is that the failure to purchase commercial ! insurance can affect bond sales. This has commonly posed no problem for other public entities. A sound risk management program is more credible than inadequate coverage. Self-insurance is an acceptable device for handling risk. Alternatives Out of eight other insurance proposals that we reviewed, not one is a superior program to self-insurance due to cost or lack of coverage. However, by com- bining various aspects of the eight proposals, we can manipulate them into a reasonably good alternative. This alternative will consist of purchasing ' general liability, auto liability, law enforcement liability, public officials' liability, airport liability, and oxcess Workers' Compensation from Employers Casualty Company. Property coverage will be purchased through Awkwright insurance Company. This option would mean using deductibles ranging from 2,500 to 020U,000. The specific deductibles and limits are as followss TABLE A Line of Coverage Deductibles Limits Workers' Compensation 2000000 10,0000000 General Liability 500000 2,0000000• Auto Liability 50,000 11000,000 % Property Coverage 500000 43,000,0006 Law Enforcement Liability 2P.000 1,0001000* Public Officials' Liability 25,000 1,0001000s Airport Liability 20500 1,0000000+ #Aggregate The disadvanta a of the above options are two in number. The first is that it s' will cost an ;2100686 more than the self-insurance option, This would mean increasing the budgeted funds by the above-mentioned amount. The second " disadvantage is that after spending the additional money for premiums, we would still have to pay for the majority of our losses, Attachment B shows the maximum claim cost for the past four years. The table further exhibits V the amount of money which would nave been spent by an insurance company on our claims If we were covered with the proposed deductibles from 1983 to the present, F- act it ail i Lloyd V. Farrell September 3, 1987 1 Page S TABLE B 1983-84 Maximum, Amount Covered Line of Coverage Claim Cost Deductible By Insurance Workers' Compensation 21,516 0200,000 $ 0 General Liability 40,000 500000 0 Auto Liability 2,177 50,000 0 Property 1,200 50,000 0 Law Enforcement 18,500 25,000 0 Public Official's Liability 200000 25,000 0 Airport Liability 0 20500 0 Total # 0 , 1984-aS Workers' Compenaation 50,000 $2000000 0 General Liability 22,555 50,000 0 Auto Liability 4,603 50,000 0 Property 400 50,000 0 Law Enforcement 450010 25,000 200010 r Public official's Liability 0 25,000 0 Airport Liability 0 20500 0 ~T Total $ 20,010 t 1985-86 workers' compensation ¢ 73,000 X200,000 # o t z' General Liability 60140 500000 0 t Auto Liability 1500000 501000 100,000 i Property 21231 $00000 0 Law Enforcement 650000 250000 40,000 j Public Official's Liability 0 258000 0 w Airport Liability 0 21500 0 Total #140,000 1986-87 Worke►e' Compensation 421500 $200,000 $ 0 ! General Liability 550000 500000 50000 "r Auto LisAlity 1800500 $00000 1300500 ` Property 120000 508000 0 x LAY Enforcement 201000 25,000 0 Public Off dial's Liability 0 250000 0 Airport Liatility 0 20500 0 TOW $1350500 n f S t I Lloyd V. Harrell September 3, 1987 Page 6 More than $100,000 would have been paid by insurance for the last two years; therefore, $100,000 worth of claims is projected to be paid by this option. This is !ow we reached the net cost of $210,646. However, since the majority of our lcssea that exceeded the deductibles were the result of police pursuit chases, we believe that a pursuit policy and pursuit driver training can drastically reduce this type of claim. Lose Scenarios There are basically two scenarios of losses for this upcoming fiscal years The first is that the claims continue on a similar path as the past four years. The second is that we experienced a catastrophic loss (i.e.., a lose in excess of 200 0o0). i If our losses continue in a similar fashion as past years, we should not have one single lase in excess of 200,000 and total losses will be contained within our loss fund, j r There ace three mechanisms we can use to protect the loss fund from k ° catastrophic loss. They are as follows: Y f o The actuarial study o The payment and collection of judgment law l o The Texas Tort Reform Act Table C below exhibits the odds the Wyatt Company predicts of a catastrophic loss occurring, The table also shows the five-year annual payout of claims that fall within the jurisdiction of the payment and collection of judgment law, This law allows us to take up to five years to pay off judgments in 7 excess of It of our tax income. .r e . TABLE r ' f" Amount Odds Five Year Present Value Of Lose of Lose Equal Payment of Loss 500,000 1 in 10 Years #1000000 ; 421,236 :00000000 1 in 100 Years 2900090 812,472 , 20000,000 1 in 1,000 Years 4000000 106840945 Due to changes in the Texas Tort Claims Act, municipalities chances of having a catastrophic claim In excess of 0500,000 is even more remota, The statutory limit of liability was increased to #250,000 per person and $500,000 per occurrence for bodily Injury and 4100,000 per occurrence for property damage. however, the municipal functions covered by the Texas Tort Claims Act, limitati ms on liability were expanded to include: t r Lloyd V. Harrell September 3, 1967 Page 7 o Libraries o Civic Centers o Community centers o Recreational Facilities o Road Repairs o Sanitatioa and Storm Sewers Long Range Plan j It must be emphasized that the recommendation to self-insure refer to a temporary status. Since the insurance industry has traditionally been cyclical (i.e., moving from offering an abundance of inexpensive insurance to refusing to renew and offera.ig ridiculously high premiums and back to an abundance of , insurance), we feel certain that affordable coverage shall one day be offered again. To a certain extent, since 19831 the City of Denton has been partially aelf-insured for workers' Compensation and liability exposures. This latest recommendation is merely an extension upon the program that was embarked upon four years ago, In terms of a long range objective, we feel that the City should ultimately attempt to once again purchase multi-peril liability ? coverage in excess of a self-insured amount of coverage, Realistically this r coverage may not be available for at least another year, f 1 ~.f Harlan L, e do id l 17921 Y jI .r l rr,a 1 (1(1 Y' 4 ~ r r i 4. 1D i CITY of DENTON, TEXAS MUNICIPAL SUILDINQ / DENTON, TEXAS 78201 / TELEPHONE (817) 608.8307 Office of the City Mensyer M E M O R A N D U M i TO Mayor and Member] of the City Council • I FROM: Jennifer Walters, City Secretary G DATE: September 11, 1987 SUBJECT: Back-up for Agenda Item #51, 1 The Utility Department has submitted the attached ordinance for your consideration, In l~+ ,.3 r r 6,. q Y n tin s 1 l:M/A~ 1 S 11 ~i i till ran f Jenn r wa rs 1 1 1A• , ~ •f3 ~ r 2727C/2 r 1 yC°fr. .n I ra y r f l r., I,' ON, rl h,fir u.,;3 A 11 1 ,F; } l I i .l r-^ ' F'. rah 1 1 • _ e...., In.NL it YrdM~4r+p„'.a,....: f v 1 1969L NO. AN ORDINANCE ADOPTING NEW WATER RATE SCHEDULES PROVIDING FOR A SEVERABILITY CLAUSEt AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HERPBY ORDAINS: SECTION I. That the Rate Schedules for water service as prov ded for in Chapt r 25 of the Cade of ordinances, are hereby amended as follows: WATER RATE SCHEDULES PAGE E W1 Residential Water Service 2 W1N Residential Water Service Not Connected to Sewer 4 W1R Religious Worship Water Service 6 W2 Commercial/Industrial Water Service 8 J.. W2A Commercial/Industrial Water Service Meter 10 ars. W2N Commercial/Industrial Water Service Not 11 Connected to Sewer W3 Water Sale for Resale to municipal Corporations Water Districts S Other Governmental Entities 13 By Agreements Prior to June 1, 1986 1 W3A Water Sale for Resale to municipal Corporations Water Districts 6 Other Governmental Entities 14 By Agreements After June It 1986 W4 Intra-Governmental Water Servicee Not 16 Connected to Sewer W4N Intra-Governmental Sales of Finished Water 18 6wt W5 Reserved 20 ~ ~ W6 Intra-Governmental Sales of Untreated Water 21 W7 Standby Fire Service Water Line 23 W8 Extra Jurisdictional Residential Water service 24 W9 Extra Jurisdictional Commercial/Industrial Water service 26 f W10 Metered Water from Fire Hydrant 28 , r.. IFP,~ i.... B.. low- - I SCHEDULE W1 RESIDENTIAL WATER SERVICE APPLICATION Applicable for single family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than 4 units. i Not applicable co resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE WINTER SUMMER F Billing months of Billing months of NOV. through APRIL MAY through OCT. (1) Facility Charge ~I 3/4' Meter 5.75/30 days 5.75/30 days 1' Meter 6.75/30 days 6.75/30 days 1-1/2' Metes 10.00/30 days 10.00/30 days 2" Meter 11.00/30 days 11.00/3n days (2) Volumo Charge 0-15,000 gals 1.65/1000 gals 1.65/1000 gals 15,000-30,000 gale 1.65/1000 gals 2.25/1000 gals Over 30,000 gals 1.65/1000 gals 2.70/1000 gals j MINIMUM BILLING Facility Charge Facility Charge r PAYMENT Bills are duo when rendered, and become past due if not paid ' within 15 calendar days from date of issuance. SPECIAL FACILITIES q l `V.,' t 1 i1 L. i All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. I d aG^ PAGE 2 ) • y~4 } i j ! PRORATION OF UTILITY BILLS 1 (a) Billing for the Facility charge shall be based on 12 E billings annually. Formula: Actual days in reading period x customer charge 30 days j (b- Billing for the water used shall be based on 30 days per month to determine the million gallon consumption to be charged to each rate block. Formula3 i _.ctual da s in ceading period x GAL in rate block x RATE i ay$ Fir 1,000 gallons in rate j " block •I A i r i i, F~ • { Safi ! r . s- L ~ S r l i ~ 1 ! jl, ~ T 1 . l F x 4 r'`Y, . r I fj n PAGE 3 ~ i iw`.r...,....._ . . ' . : 41A 004I" t is i i i SCHEDULE WIN RESIDENTIAL WATER SERVIC3 NOT CONNECTED TO iEWER APPLICATION E - Applicable for single family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than 4 units, where the metered water is not returned to the wastewater system for collection and treatment; # i.e., lawn sprinkler or septic system. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE WINTER SUMMER ° Billing months of Billing months of } - NOV. through APRIL MAY through OCT. (1) Facility charge I 3/44 Meter 5.75/30 days 5.75/30 days ` 1' Meter 6.75/30 days 6.75/30 days 1-1/2' Meter 10.00/30 days 10.00/30 days 2' Meter 11.00/30 days 11.00/30 days (2) Volume Charge 0-15,000 gals 1.65/1000 gals 1.65/1000 gals 15,000-30,000 gals 1.65./1000 gals 2.25/1000 gals f'x Over 30,000 gals 1.65/1000 gals 2.70/1000 gals t~ MINIMUM BILLING Facility Charge Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES ` 'fr All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. f PAGE 4 i 4 i 1€€ i PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 billings annually. , Formula: Actual days in reading period x customer charge 30 days • r~ (b) Billing for the water used shall be based on 30 days per month to determine the million gallon consumption to be charged to each rate block. Formula Actual days in reading period x GAL in rate block x RATE 30 days per 11000 gallons in rate block kv c , o- 1 rE r r s I I PAGE 5 • 1 Y~ f r SCHEDULE W1R i RELIGIOUS WORSHIP STATER RATE APPLICATION I Applicable to all facilities used primarily for religious worship, served by a single water service line through one meter. Not applicable for resale service in any event, not to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. I iM1 (1) Facility charge 3/4' Meter 5.75/30 days 5.75/30 days 1' Meter 6.75/30 days 6.75/30 days 1-1/2' Meter 10.00/30 days 10.00/30 days 2' Meter 111.00/30 days 111.00/30 days 1 (2) Volume charge 0-15,000 gals 1.65/1000 gals 1.65/1000 gals 15,000-30,000 gals 1.65/1000 gals 2.25/1000 gals :.i Over 30,000 gals 1.65/1000 gals 2.70/1000 gala MINIMUM BILLING Facility Charge Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid s within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. is Y PAGE 6 . -e rl. i I PRORATI^N OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 E billings annually. Formula: Actual days in reading period x customer charge ' 30 ays 9~t{' (b) Billing for the water used shall be based on 30 days pet month to determine the million gallon consumption to be charged to each rate block. k Formula Actual days in reading period x GAL in rate block x RATE 30 days per 1,000 gallons in rate block ~th y~ Iwo , s ~l 'Y i ry 1. n~~ R t 19 I ~ I n,~ Y r ~ 6i trt, ra. 41 >,I;' : ,qtr, i= PAGE 7 I r E SCHEDULE W2 COMMERCIAL/INDUSTRIAL WATER SERVICE RATE APPLICATION Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance. For all water provided at one point of delivery and measured through ' one meter. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. I NET MONTHLY RATE 4,. o-4 (1) Facility Charge 3/4' Mete[ 12.00/30 days r ' 1' Mete[ 13.00/30 days ` 1-1/2' Meter 15.00/30 days 2' Meter 17.00/30 days 3' Meter 50.00/30 days 4' Meter 84.00/30 days 6" Meter 107.00/30 days 8' Mete[ 121.00/30 days (2) Voli.me Charge $1.70/1000 gallons ( c'" MINIMUM BILLING Facility Charge o x t PAYMENT Bills are due when tendered, and become past due if not paid within 15 calendar days from date of issuance. s t SPECIAL FACILITIES order to require special services All which t` meet customer's servicerequirements shall facilities iprovided in subject to the special facilities rider. 11 ~ If, . Rn, ~ PAGE 8 i t sr I 0 PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 billings annually. t j t f Formula: Actual dais in reading period x customer charge ays (b) Billing for the water used shall be based on 30 days per jl month to determine the gallon consumption to be charged E # to each rate block. a Formula: y Actual days in reading period x GAL in rate block x RATE 30 days per 1,000 gallons in rate r, block ~ + l f a r: ~r r ~~11 ~ rf l 'i. 4y~~ y ! aJ 4 I ~ • 7+R R l M1 )4+ 1. i. SS ~Y ~ u t Y c r t'1 r PAGE 9 nt . 1 r y l r f } SCHEDULE W2A COMMERCIAL/INDUSTRIAL WATER SERVICE METER USED TO DETERMINE WASTEWATER VOLUMES i " APPLICATION I ' Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance. For all water provided at one point of delivery and measured through one meter to be used in determining wastewater volumes only. j (See S-2A for volume charges) . 'r Not applicable to resale service in any event, nor to tempo- nary, standby, or supplementary service except in conjunction with applicable rider. 3 NET MONTHLY RATE Facility Charge ' c. 3/4' Meter 12.00/30 days 1' Meter 13.00/30 days 1-1/2' Meter 15.00/30 days a 2' Meter 17.00/30 days a° 3' Meter 50.00/30 days t 4' Meter 84.00/30 days 6' Meter 107.00/30 days 8' Meter 1121.00/30 days a.h'= MINIMUM BILLING Facility charge PAYMENT Bills are due when rendered, and become past due if not paid i'ywithin 15 calendar days from date of issuance. x„ ' SPECIAL FACILITIES ~r All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. 1F PRORATION OF UTILITY BILLS " W.11 ing for the Facility charge shall be based on 12 billings annually. Formula: Actual dais in reading period x customer charge 30 ays ` PAGE 10 i t t •a i SCHEDULE W2N COMMERCIAL/INDUSTRIAL WATER SERVICE NOT CONNECTED TG SEWER APPLICATION i Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance. For all water provided at one point of delivery and measured through one meter where the metered water is not returned to the waste- water system for collection and treatments i.e., water used in production or irrigation or where wastewater flow is measured separately. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE M (1) Facility Charge 3/4' Meter 12.00/30 days 1' Meter 13.00/30 days i 1-1/2" Meter 15.00/30 days 2' Meter 17.00/30 days 31 Meter 50.00/30 days 4' Meter 84.00/30 days roll, 6" Meter 107.00/30 days 8' Meter 121.00/30 days ' (2) Volume Charge $1.70/1000 gallons .4 MINIMUM BILLING f " Facility Charge PAYMENT Bills are due when renC•ired, and become past due if not paid within 15 calendar days from date of issuance. ' SPECIAL FACILITIES All services which require special facilities in order to j meet customer's service requirements shall be provided subject to the special. facilities rider. r. 4 PAG3 11 t 1 { 1 ` 6 PRORATION OF UTILITY BILLS t (a) Billing for the Facility charge shall be based on 12 billings annually. Formula: Actual days in reading period x customer charge 30 ays I, (b) Billing for the water used shall be based on 30 days G per month to determine the gallon consumption to be charged to each rate block, Formula: Actual days in reading period x GAL in rate block x RATE 3 ays per 1,000 gallons in rate block y ~ r A+ ~Y r ve <~q,~ t,A JOE { „R f }N V ~ f; l ~Mah el'4'Y, I WT f 4 \y 1 > 1 r 1 s ` ~ 1 J cA h I`. V 1 ~y ! 1 q 1 '1 t~M ; I SCHEDULE W3 WATER SALE FOR RESALE TO MUNICIPAL CORPORATIONS, WATER DISTRICTS, AND OTHER GCVRRNMENTAL ENTITIES f BY AGREEMENT EFFECTIVE PRIOR TO JUNE 1, 1986 i t APPLICATION Applicable to all water sales contracts with municipal corporations, water districts, Jr prior to June 1 governmental es made entiti 1 for r 986, for t resale to the public, he purpose of providing water for k Not applicable for temporary, standby, or supplementary service except in conjunction with applicable rider, MONTHLY CHARGES (1) Facility Charge $150,00 (2) Volume Rate $ 0.63/10000 gals (3) Demand Rate $192.00/1,000 gallons *ANNUAL CHARGE (4) Readiness to Serve Rate $ 0,3437/1,000 f gallons t Yr Ti 'AS determined in the last month of each Water Year. The q annual charge, if any, shall be included on the monthly billing for the next July following the end of the Water ` ire Year for which it is charged, and shall be billed and be 4h i payable in accordance with the monthly billing provided for below. r` PAYMENT Denton shall rei aer bills on the tenth (10th) day of each month, bills shall be due and r considered delinquent if not payable when rendered. Bills are p of the month. There shall be aifive percent e(51)fortfive5hundred dollar ^ ($500.00) charge, whichever is less, added to the bill if not paid by the twenty-fifth (25th) of the month. III EFFECTIVE DATE t The charges stated herein shall be applied to all water i services supplied after May 31, 1987. PAGE 13 y a. 4 E SCHEDULE W3A WATER SALES FOR RESALE TO MUNICIPAL CORPORATIONS, j WATER DISTRICTS, AND OTHER GOVERNMENTAL ENTITIES BY AGREEMENT, AFTER JUNE It 1986 _ j APPLICATION Applicable to all water sales contracts with municipal corpo- rations, watee districts, or governmental entities made on or after June 1, 1986, for the purpose of providing water for resale to the public. Not applicable for temporary, standby, or supplementary ser- vice except in conjunction with applicable rider. MONTHLY CHARGES ! (1) Facility Charge $164.25 (2) Volume Rate $ 0.63/1,000 gallons 1= ` (3) Demand Rate $262.56/1,000 gallons 12 'ANNUAL CHARGE (4) Readiness to Serve Rate $ 0.3437/1,000 gallons 'As determined in the last month of each Water Year. The annual charge, if any, shall be included on the monthly billing for the next July following the end of the Water Year ?1 4`, for which it is charge, and shall be billed and be payable a b; in accordance with the monthly billing provided for below. j PAYMENT j Denton shall render bills on the tenth (10th) day of each 1 1 month. Bills shall be due and payable when rendered. Bills are considered delinquent if not paid by the twenty-fifth (25th) day e'a { of the month. There shall be a five percent (5i) or five hundred dollar ($500.00) charge, whichever is less, added to the bill if not paid by the twenty-fifth (25th) of the month. If not paid by j the last day of the month, there shall be an additional interest charged on the unpaid balance, equal to the auction average rate quoted on a bank discount basis for a twenty-six (26) week treasury bill issued by the United States government, as published by the Federal Reserve, for the week prior to the date such bill or bills are delinquent, or ten percent (101) whichever is less. PAGE 14 i i I I , i EFFECTIVE DATE The charges stated herein shall be applied to all water services supplied after may 31, 1987.1 ti, t 5 A I A ,qT l c s sa 5' d Y r ;S7 , V ry 5 rr fir! q b~~. ~1jx7 t,i S 1 s r x u t r h~ i q'r d~ q .Y ,IT L ••q~ l V f yJ L T f 5 {~f ,fi vi t lA f; PAGE 15 . r II q~ ' SCHEDULE W4 INTRA-GOVERNMENTAL WATER SERVICES NOT CONNECTED TO SEWER APPLICAT:ON Applicable to sales of finished water to all City of Denton Departments and governmental agencies supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, nor to v~ temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge 1125/30 days 3/41 Met 10 MetereC 12.50/30 dais 1-1/2' Meter 15.50/30 days r d` 2' Meter 17.50/30 rays 3' Meter 53.50,3C days 4' Meter 85.00/30 days 6" Meter 107.00/30 days 8" Meter 125.00/30 days (2) Volume charge $1.55/1000 gallons d' 4 MINIMUM BILLING i } v Facility Charge PAYMENT Bills are due when rendered, and become past due if net paid within 15 calendar days from date of issuance. j SPECIAL FACILITIES ` All services which require special facilities in order to .l. meet customer's service requirements shall be provided subject to the special facilities rider. y kr PRORATION ION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 billings annually. PAGE 16 4 f Formula: j k i Actual days in reading period x customer charge 30 days (b) Billing for the water used shall be based on 30 days per t month to determine the gallon consumption to be charged to each rate block, rmula: a' I Actual dl y.2 in reading Xeriod X GAL in rate block x RATE 30 days per 1,000 gallons in rate block k fI 1 f 1 V , d . ` 1~ + I ! i fYl t 5 E ~~'•l it .I ~ i a II ¢ 4, R vim" d ksrs f~~F 't4 k Y r r n s r " a PAGE 17 F a A r' F' ir; y Y IF' . n v.tvFf{Ir'F.'y rr it{✓.i9 ti.JWi}fk~~'~. % f li' f 1 SCHEDULE W4N c s r INTRA-GOVERNMENTAL SALES OF FINISHED WATER I APPLICATION Applicable to sales of finished water to all City of Denton Departments and accounts supplied at one point of delivery and measured through one meter. j Not applicable to resale service in any event, nor to temporary, standby, or supplementary service eAcept in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge 3/4' Meter $ 11,25/30 days 1 1' meter $ 12,50/30 days 1-1/2' Meter $ 15.50/30 days } 26 Meter 17.50/30 days 3 Meter 53.50/30 days 4~ Meter 85.00/3G days 60 Meter 107.00/30 days 8' `!eter 1125.00/30 days (2) Volume charge $ 1.55/1000 gali,:ns MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. I SPECIAL FACILITIES + All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider, ~k+s' PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 x billings annually. i F> " PAGE 18., Formula: i Actual days in reading period x customer 30 days charge 1 (b) Billing for the water used shall be based on 30 days per i month to determine the gallon consumption to be charged A I to each rate block, l is Formula: Actual days in reading period x GAL in rate block x RATE 30 days per 1,000 gallons in rate block r IJ w. nr i d. 1i r e 1'. ~ ~ is > l v ~ 444^ r I 1 e` 1 III i 'c. Yr r 1 t r e l Y v _ d r- i r' <'t IA 1i V 1 V,. PAGE 19 , ,Y .^"i:a~!x.4akW dx°';',31.SA7arV A;»'. r1A~rM,:-~,«...•+ e I 1 1 SCHEDULE WS +3+ i "r r G x•' ' i RESERVED rah r r a Ri~ b a. s t,+r q }~F~~ 'il 1 r1^ y Ifi ler ~,a1 fir, y F ~ nil r t kr,' 4 ivy L r.{~ ' 's' rf~"~ 1~ Ja Y a ~ qtr i'y+. ~ +i ! i' r ! r~Ykl' PAGE 20 r, t r i ~ A i i { SCHEDULE W6 i 1 INTRA-GOVERNMENTAL SALES OF UNTREATED WATER APPLICATION I Applicable t. :411 City of Denton Departments and accounts for untreated water supplied at one point of delivery and measured 1 through one meter. Not applicable for resale except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge $110.00/30 days (2) Volume Charge $ 1.00/1,000 gals. p n MINIMUM BILLING y $110.00/30 days r r PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance, SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to r tir the special facilities rider. ! G FYI} ` • ' ~ PRORATION OF UTILITY BILLS Il a f t (a) Billing for the Facility charge shall be based on 12 { billings annually. Formula: Actual days in reading period x customer charge 30 ays r c rar ~ 3, ti' PAGE 21 ~ '..n• A 1s ,.s:p is x, Y b~ 4 j :71 1 7 L ~i ! (b) Billing for the water used shall be based on 30 days per month to determine the gallon consumption to be charged 33 to each rate block. t Formula; Actual days in reading period x GAL in rate block x RATE 30 days per 1,000 gallons in rate block r- a } 3 -G u S 1 p 1 r t:f~ f ~ vt a YA' 4y ~ t F r 1 ..y~ I , i a PAGR 22 ftr , ys s , N f t 1 SCHEDULE W7 j STANDBY FIRE SERVICE, WATER LINE i ' f APPLICATION Applicable to commercial and industrial users for unmetrsred fire service water line to serve only sprinklers or other private fire fighting equipment. Not applicable for resale in any event. NET MONTHLY RATE Facility Charge T' 6' Line 16,00/30 days B' Line 23.15/30 days MINIMUM BILLING i Facility Charge w PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from data of issuance. SPECIAL FACILITIES ` All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 billings annually. ~i Formula: 4 Actual days in reading period x customer charge 30 ays 100- PAGE 23 a . d' ! SCHEDULE WS 1 EXTRA-JURISDICTIONAL RESIDENTIAL WATER SERVICE APPLICATION r Applicable for single family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than 4 units outside the corporate limits of 1 the City of Denton. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. (1) Facility charge 3/4' meter 9.00/30 days 9.00/30 days 1" Meter 10.00/30 days 10.00/30 days ' 1-1/2' Meter 14.00/30 days 14.00/30 days 2' Meter 16.00/30 days 16.00/30 days s (2) Volume charge 0-15,000 gale 2.45/1000 gals 2.45/1000 gals 15,000-30,000 gals 2.45/1000 gals 3.25/1000 gals Over 30,000 gale 2.45/1000 gals 4.00/1000 gala MINIMUM BILLING 0 Facility Charge PAYMENT y Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. All i SPECIAL FACILITIES All services which require special facilities in order to meet customer's sorvire require,.tents shall be provided subject to y, the special facilities rider. i r; jr Y f t i, PAGE 24 ~ r. ;Y.f.;6v•'.. .y.1 N. wyivp YA'lku JryPMS N. {SAX-1 P I Mr'•T. i jk PRORATION OF UTILITY BILLS E (a) Billing for the Facility charge shall be based on 12 billings annually. Formula: { 1 Actual days in reading period x customer charge 30 days r r,'I (b) Billing for the water used shall be based on 30 days per month to determine the gallon consumption to be charged to each rate block. Formula: Actual drys in reading period x GAL in rate block x RATE ' 30 days per 1,000 gallons in rate block d M Y ri 1 f ~ 1 • ~ r,- w~ drx r ~ r r r'" k IY n, r nrI r' ~i.a 1 ~ + + 1 7 f , kl . :'a rid ~ v1.^rM~~4 +f-~ PAGE 25 r s r ' I. L a iG~►""'-,..~....-,, , ..1. >1Asr..ri..>+f.~,€.~l•icn%+4P+W 1ek`la4ax~.3IkW ~Mi7C,F ~ x I t' SCHEDULE W9 EXTRA-JURISDICTIONAL COMME#CIAL fi INDUSTRIAL WATER SERVITE APPLICATION 7 Applicable foe all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of 'she City of Denton for all water service provided at one point of delivery and measured through one meter. Not applicable to temporary, star,&.y or supplementary service, except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge 3/4' Meter 15.50/30 days 1' Meter 17.00/30 days 1-1/2' Meter 21.50/30 days 2' Meter 24.50/30 days W t ! 3' Meter 73.25/30 days 4' Meter 123.50/30 days 6' Meter 157.50/30 days 84 Meter 1178,50/30 days (2) Volume Charge $2.55/1000 gallons MINIMUM BILLING Facility Charge °YY 1'- t PAYMENT "n Bills are due when rendered, and become past due if not paid " within 15 calendar days from date of issuance. SPECIAL FACILITIES ~x All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. ° :tNt PRORATION OF UTILITY BILLS ' .Y (a) Billing for the Facility charge shall be based on 12 billings annually. d PAGE 26 r , 't Formula: Actual days in reading period x customer charge 3 ays 1 aar used shal be based (b) B month illing to determinet the gallonlconsumption oto3oedcharged to each rate block. 1 i Formula: { Actual days in readin eriod x GAL in00r,,te blockin x RATE rate 30 days per ` to cf') ' o a ♦ a 1 J~A yy1 i'y 1t tira ~ a . , l T I-/A" A'^ M ,'WIr 4 rO II it 1 4~ n1t.'. ~;r ~ ~f I ~ c`R t y IiiI S~~ b rr 1 r ' I r PAGE 27 qr , W . y Jf I rl f 1 :"Ili ~~r 9 1 SCHEDULE W10 r METERED WATER FROM FIRE HYDRANT APPLICATION I Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. DEPOST^ $650.00 User shall place a deposit for each use of each of the E City's hydrant meter(s) needed. Deposit to be returned when meter is returned and final bill is paid. t NET RATE a r Volume Charge: $ 1.80/1,000 gallons ~lI ~t f 1 Volume use shall be computed by subtracting the meter j reading at time of custo..ler paying deposit and receiving meter E from meter reading upon return of meter times any applicable multiplier. ~ y 'r I 4 FACILITY CHARGE y. 5 $ 19.50/30 days y" INSTALLATION CHARGE $ 41.30/meter/installation 4 -l ~ $j v erg . PAYMENT k{ 1 Hills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. .r , r ,r r i 1 ' ~ 111 t y . •lr. 1 y 5 1 ; 1 ` R .r PAGE 28 1 i i i SECTION II. That if ary section, subsection, paragraph, sentenc „ clause phrase or word in this ordinance, or application there.; to any person or circumstances is held inva%id by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portion4 of this ordinance, and t City of Denton, Texas, hereby declars it would ihaveoenactedfsuch remaining portions daspite any such invalidity. SECTION III. That the Schedule of Rates herein adoF'..d shall be effective, charged and applied to the first regular billing cycle cn or after October It 1987. PASSED AND APPROVED this day of - 2987. a er'p RAY STEPHENS, MAYOR c ATTEST; 5 wN i JENNIFER WXLTERS, CITY SECRETARY E APPROVED AS TO LEGAL FORM; ;a Y 'i 4 rr DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY y i I BY: t~ t ~ 5 L 1 R Y ' i l r 7s ~S . PAGE 29 r i 7 CfTY of DENTON, TRaf b~ MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPNOfIE (A:7) 500 B30' OKIce of Me City Manoger M R M 0 R A N D U M k TOt Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary DATE: si.ptemb~r It, 1987 k^. SUBJECT: Bacl.-'up for Agenda Item 1 si. 0 Y' I^~ The Legal Department is in the process of completing the ordinance possible for this e ordinance. to time constraintso th de packet, Legalt was not in the will provide theordinance r vl lgye 1 ~vI for your review as soon as possible. t+ ` Jenn r a era t y i,Cr. } r r, , 2 7 2 7 2 t {{YY Ft { V . X0.5 .V~ A yr k41 'hv s ,r~, ' h vti. r ,R r F p!L• f s J JY ~ , II r ti I 1 September 15, 1987 CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager RE: CONSIDER ORDINANCE, FOR AMENDMENT TO THE TMPA POWER SALES AGREEMENT j RECOMMENDATION: The Staff recommends approval of the subject amendment to the TMPA Power Sales Contract. Final ordinance will be presented for consideration at th,~ September 15, 1987, t; Council meeting. - SUMMARY: In 197b, the City of Denton entered into a Power Sales Agreement with the Texas Municipal Power Agency (TMPA) to provide future electrical power and energy to Denton. Section 3 of that Power Sales Contract prohibits the City of Denton from ` power to Dentonlsn any r future generation other than a 101 upgrade i Froductioa system as it existed in 1976 or addition of solid 1 waste fired generation. The proposed amendment, attached herewith as Exhibit 1, would allow any one of the TMPA member cities to install up to 5,000 % KW of additional generation if such generation is riot fueled by lignite, coal, natural gas, oil, nuclear fuel or ar.y purchased fuel. This installation amendment of will a 2allow 9 KW thydroelectric Denton proceed e Lewisville {r Lake . j The TMPA legal staff, the TMPA bond attorneys and Denton's City Attorney have reviewed and approved this amendment. PROGRAMS GROUPS OR DEPARTMENTS AFFECTED: City of Denton, Denton Municipal Utilities and the citizens. Y` ~ ~M1k`f k ` i. J. S018U:? r r}'- l . E FISCAL IMPACT: This amendment will allow the installation of the Lewisville hydroelectric project which will ultimately represent $200,000- $400,000 pwer year in electrical savings for the water and Wastewater Department. 4ec ly ub i ted, I ell, C tyHager Jv t PREPARED 6Y- s a son, xecut ve rector Department of Utilities ERHIHIT I: Amendment I-IKPA Power Sales Contract a 1. i. ' i, 10 "IX J Y 'A Y~ A r , >y M 5018U:7~ j Y Xr '01 1 14 a iI ' 1973L NO. s; r. AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DENTON APPROVING AN AMENDMENT TO THE POWER SALES CONTRACT BY AND BETWEEN TEXAS MUNICIPAL POWER AGENCY, THE CITIES' OF GARLAND, DENTON, BRYAN AND GREENVILLE, AND PROVIDING FOR ITS EXECUTION ON BEHALF OF THIS } CITY; ENACTING OTHER :ROVISIONS INCIDENT AND RELATED TO THE PURPOSE OF THE ORDINANCE; REPEALING CONFLICTING ORDINANCES OR ' RESOLUTIONS; AND PROVIDING AN EFFECTIVE DATE. i WHEREAS, the City of Denton, Texas has executed with each of { the Cities of Bryan, Garland, and Greenville and Texas Municipal Power Agency a Power Sales Contract dated September 1, 1976; and WHEREAS, the Cities have various opportunities to construct or acquire generation facilities, extremely, limited in size and scope, using alterLiative fuels which would provide economical power and energy; and WHEREAS, the governing body of the City of Denton, Texas has received the request of the Board of Directors of the Texas p Municipal Power Agency that this governing body approve an amendment to the Power Sales Contract prior to consideration of this Amendment by said Board of Directors; and „ WHEREAS, this governing body has and does hereby determine that it is in the best interest for the City and its inhabitants to approve the same; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I, That attached hereto and made a part hereof for all purposes, is a copy of an amendment to the Power Sales Contract, SECTION 11. That the amendment to the Power Sales Contract 3 by Ad between the Texas Municipal Power Agency and this City, the some being identical contracts between said Agency and the Cities of Bryan, Denton, Garland, and Greenville, being attached hereto, is hereby approved so long as such changes are not substantial and do not affect the substantive Intent of the document as attached hereto, The Mayor of this City is hereby authorized to execute said contract as the act and deed of this City and its governing body and may, upon the advice of the City Manager and City Attorney, approve minor changes to the same so ! long as such changes are not substantial and do not affect the substantive Intent of the document as attached hereto. 1 I SECTION III. All ordinances or other actions heretofore taken w c are or may be contrary to the provisions hereto or 'Fr the provisions of the amendment to tho Power Sales Contract authorized to be executed are hereby repealed. SECTION IV. That this ordinance shall become effective j imme ate y upon its passage and approval. ' PASSED AND APPROVED this the day of , 1487. 6.r e 1 Ir f /yi RAY 5THHENSO MAYOR I , l ATTEST: A r 1'1+ 1'.. G I l 4~1 Yrl'1Y.yLl y` , `t C ' ~ h ar i Vy JENNIFER ATE SECRETARY r" APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY ;y BY: Ala) W ' .I I. ro ] r i r 1' r 10 Lk C rW '~+`r + AMENDMENT TO POWER SALES CONTRACT BETWEEN w TEXAS MUNICIPAL POWER AGENCY AND CITY OF BRYAN, TEXAS CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS This amendment to that certain contract, made and entered into as of the 1st day of September, 1976, "the Contract" by and between the Texas Municipal Power Agency, a municipal Corporation and political subdivision of the State of Texas herein called "Agency" and the City of Bryan, the City of Denton, the City of Garland and the City of Greenville, Texas each of which cities is a municipal corporation of the State of Texas and a home rule city herein collectively called "Cities" or individually called "City", WITNESSETH: ~ r f r WHEREAS, as of September 1, 19769 the Cities of Bryan, Denton, Garland and Greenville and Texas Municipal Power Agency, executed a Power Sales Contract (the "PSK"); and WHEREAS, the Cities have various opportunities to construct or acquire small generation facilities, using alternative fuels which would provide economical Power and Energy to each City; and WHEREAS, the Agency has obtained the consent of Texas Commence Bank Association and National Australia Bank to such amendment; NOW, THEREFORE, in consideration of .'ie mutual undertakings herein contained, the Agency and each City agree as follows: Section 3(a) of the Contract is hereby amended to read as follows: Section 3: Sale and Purchase of Power and Energy ' (a) During the time this Section is applicable to such City, each City agrees as follows: =y: (1) Each City shall purchase and receive from the Agency w we; all Power and Energy which it shall require for the r. operation of its electric system in excess of the j amount (i) supplied by those generation and transmission facilities (in this subsection 3(a) called the "clause (1) Facilities"), if any, owned by it on September 1, 1976, including, as parts of any clause (i) Facilities, those generating and transmission facilities, if any, under construction on such date, and improvements or extensions of such generating facilities made or to be P made after September 1, 1976, which increase the Rated s Capacity of same so long as the increase during any period of two successive Contract Years does not exceed 101 of the some's Rated Capacity at the beginning of such period, provided the Cities and the Agency may, in writing, waive such 101 limit, (ii) supplied from one or more generation facilities (in this subsection 3{a) called "clause (ii) Facilities"), if any, each of which j is primarily fueled from and the construction and operation of which is incidental to the disposal of solid waste and which was or is constructed after September 1, 1976, anu owned by one or more of the Cities, including, as parts of any clause (it) Facility, any transmission facilities that are necessary for the transmission of Power and Energy therefrom, and (iii) supplied from any other generation facilities (in this subsection 3(a) called the "clause (iii) Facilities" and including, as parts of any such clause (iii) Facilities, any r transmission facilities that are necessary for the transmission of Power and Energy therefrom), if any, owned by the City which are acquired or on which construction is begun after January 1, 1988, so long as (A) the Rated Capacity of any one such clause (iii) Facility does not exceed 3 10 kilowatts, (B) the City does not, during the term of this Contract, own or have an interest in two or more clause (iii) Facilities that have a combined Rated Capacity in excess of S,000 kilo- watts, and (C) no clause (iii) Facility is fueled by lignite, coal, natural gas, oil, nuclear fuel, or ary purchased fuels; and provided that each City stipulates and agrees with the Agency that Power and Energy generated by clause (iii) Facilities shall not be taken ! into or transmitted through any of the City's transmission lines or used by the City for the operation of its electrical system except to the extent exppressly permitted under the provisions of subsection 3(A)(4) below. (1) Each City binds itself to pay for all Power and Energy purchased or otherwise acquired by it from the Agency ade at pursuant to this Section 3, said payment to be Mile, the rates and charges established pursuant to Section 7 of this Contract. (3) Notwithstanding the foregoing provisions of subsection 3(a)(1) above, each City reserves and shall have the PAGE 2 _m I right to purchase or exchange Power or Energy (i) on an emergency, maintenance, or stand-by basis or (1!) on the basis of economic dispatch between the Citles and Brazos Electric Power Cooperative, Inc. (Brazos), or any one or more of such entitles or (iii) ender the existing pooling agreement between the Cities and Brazos and future pooling agreements among the foregoing and others, all, or any combination thereof, and the Agency; provided that t each City stipulates and agrees with the Agency that Power and Energy generated by clause (!11) Facilities shall not be purchased, exchanged, taken into or trans- mitted through any of the City's transmission lines or used by the City for the operation of its electrical f system except to the extent expressly permitted under the I provisions of subsection 3(a)(4) below. I (4) Each City agrees that Power and Energy generated by I clause (ill) Facilities (zegardless of which City owns such clause (iii) Facilities) shall not be taken into or transmitted through any of such City's transmission lines or used by such City for the operation of its electrical system or exchanged or sold by such City to any other City or other entity except as follows: (I) Power and Energy generated by clause (iii) Facll• itie3 may be taken and used by a City pursuant to this subparagraph (1) to the extent, and only to 1 the extent, required to supply the excess, if any, of the City's requirements for Power and Energy at any time above the maximum amount of Power and Energy which is then available or could then be made available (if requested) from the Agency to supply such requirements; or (II) Power and Energy generated by clause (ii!) Facil- ities may be taken and used by a City pursuant to this subparagraph (1I) during any month to the extent, and only to the extent (!f any), that the City reduces the amount of Power and Energy which would otherwise have been taken and used by the Cit during such month as authorized in subsection 3(&5(1) or subsection 3(a)(3) hereof from then existing clause Facilities or clause (11) Facilities which are capable of generating such Power and Energy at a cost to such City equal to or less than the cost of such Power and Energy if it had been purchased from the Agency; or j (I1I) A City which owns or operates clause (iii) Facil- lties may generate Power and Energy in such facilities and transmit same through its trans- mission lines to the extent, and only to the r PAGE 3 If l extent, that such City or other Cities are auth- orized and permitted to use such Power and Energy for the operation of its or their electrical system under the foregoing provisions of subparagraph (1) or subparagraph (II) of this subsection 3(a)(4). Each City stipulates and acknowledges that the purpose and intent of the foregoing subparegraphs (1), (II) and (II1) are to insure and require that, during any month while a City takes and uses Power and Energy generated from any one or more clause (ili) { Facllitles, the amount of Power and Energy purchased and received by such City from the Agency during such month will never be reduced below the amount thereof which would have been purchased and received by such City from the Agency if no clause (Ili) i Facilities were ever owned or constructed by any of the Cities. II. All other terms, provisions, conditions, and obligations of the contract between the Cities and the Agency shall remain in „ full force and effect, and said contract and the Amendment Agreement shall be construed together as a single contractual agreement. IN WITNESS WHEREOF the arti hereto ave us this Amendment to be executed in th irescorporate hnamescaandd their S+;'F corporate seals affixed, all by the proper officer duly authorized thereunto, as of the day and year first hereinabove written. TEXAS MUNICIPAL POWER AGENCY -,Y ATTEST: r ' F BY., STGRETART CITY OF BRYAN, TEXAS , r BY. MAYOR ,c M y. i , 1 PAGE 4 , 4 k i„ ATTEST: BY: I SECRETARY t ~ 11 ' CITY OF DENTON, TEXAS BY: r MAYOR ATTEST: ji .1 BYi SICRETXRY CITY OF GARLAND, TEXAS BY: ATTEST: qtr, r BY n. z zh. CITY OF GREENVILLE, TEXAS S y BY: MAYOR 1 r`'1 r 1 ATTEST s 1 r , y BY: rv'a 4 r•s~,~ SMURETARY Pry PAGE S ry ` • ' 14 d~✓'¢ r y R _ ......-.:.a^µwy::,+tLffbliFlbfew.►FOWi+MMYw.w'r1`..•r.... ~.~..~.aw..•...~, I,r < , u 1 l R FULBRIGHT & JAWORSKI r 1301 McKinney Street Houston, Texas MEMORANDUM i T0: Elbert M. Morrow FROM; Uriel E. Dutton DATE: August 20, 1987 RE: Amendment of TMPA Power Sales Contract ' As a follow-up on our telephone conversation yesterday, I am enclosing a revised draft of an amended subsection 3(a) of the captioned Contract, which would take the place of the entirety of subsection 3(a) originally appearing in the Contract. In this draft, I have attempted to address the different times when various facilities may have been or may be acquired or owned or constructed by the Cities and have also attempted to deal with the problem presented by the potential utilization of "clause (iii) Facilities" to generate electricity which is sold or exchanged or purchased in rr connection with the "economic dispatch" arrangements among the N ar„ Cities and Brazos Electric Power Cooperative, Inc., or the pooling agreements which were referred to in the last (unnumbered) subparagraph of subsection 3(a) as originally written. As we discussed, the objective of this revised draft is to insure that electricity will not be generated in "clause (iii) Facilities" and sold or exchanged or purchased pursuant to such "economic dispatch" or "pooling" arrangements manner as to by Power of and nCities from TMPA, contrary to the intention of the restrictions under subsection 3(a)(1) of the last proposed draft amendment of the Contract. You will note that the enclosed draft is not designed to permit the Cities to utilize "clause (iii) Facilities" to generate electricity for delivery pursuant to "economic dispatch" or "pooling" arrangements in circumstances where the I only facility which could deliver such power at a cost equal to ' or less than that of TMPA's cost is owned by Brazos Power Cooperative, Inc., or some other present or future participant (other than the Cities) In a "pooling" agreement with the Cities, I have a feeling that the somewhat open-ended J~t 10 "pooling" exclusion contained in subsection 3(a) as originally F written should probably not be further expanded so as to invite the Cities to enter into a "pooling" arrangement with a cheap ca~lJU i Elbert M. Morrow 11 August 20, 1987 Page 2 source of power which they could then "curtail" to permit F f operation of "clause (iii) Facilities." Call me if I can be of further assistance on this. M .O. UED/hlw i Enclosure cc: William B. White (Firm) ~ w Mf v, ~4 Y , .81 d K .'J-r i Al" 6 R v yr~ ti V ~ 4 f ~ f 11 R h vY y V 1 ? FF 4 G tr + f > n ;tip .,fir ` 4,a r L 1 • AN 1 ~ tV i 1 rt. ~ y~) i ev r 4 r i4 r 1 " L~ lq r i bi- r 1 t le , v F t.l+~--"'M ....i tt,ra:wfJYx•+,r .e.l.. r 141- n • i i Caa/iU i Section 3; Sale and Purchase of Power and Energy (a) During the time this Section is applicable to such city, each City agrees as followsr (1) Each City Shall Purchase and receive from the JI Agency all Power and Energy which it shall require for the I operation of its electric system in ezce. s of the amount (1) supplied by those generation and transmission (in this subsection 3(a facilities ) called the "clause (i) Facilities"), if any, owned by it on ' September 1, 1976, including, as parts r of any clause (1) Facilities, those ' generating and trans t issio:; facilities, if any, under construction on ` such date, and improvements or extensions n1 such 'ILI generating facilities made or to be made after September 1, 1976, which increase the Rated A r { Capacity of same so long as the increase during any period two successive Contract Years does not exceed 104 oEtheof Ei ILI p• Y~ Rated Capacity at the beginning of such period, provided the • x Cities and the Agency ,gay, in writing, waive such 104 limit, (it) supplied from one or more ^generation facilities (in this subsection 3(a) called clause (ii) Facilities"), if an of which is y, each primarily fueled from and i the construction and E, operation of which is incidental to the disposal of y solid waste and which was or is constructed after September 1, 2976, and by one or more o z~ f the Cities, including, as parts of any ~ w r,' clause (ii) Fact lit 1 YO any transmission facilities that ar,i necessary for the transmission of Power and Energy therefrom, r2 rl I + i } 1 Ca IIIV j 1 f and (iii) supplied from any other generation facilities (in this subsection 3(a) called the "clause (iii) Facilities" and including, as parts of any such clause (iii) Facilities, any transmission facilities that are necessary for the transmission i of Power, and Energy therefrom), if any, owned by the City which ! are acquired or on which construction is begun after 1987, so long as (A) the Rated Capacity of any s one such clause (iii) Facility does not exceed 3000 kilowatts, I 1 P (B' the City does not, during the term of this Contract, own or E have an interest in two or more clause (iii) Facilities that have a combined Rated Capacity in excess of 5000 kilowatts, and (C) no clause (iii) Facility is fueled by lignite, coal, natural gas, oil, nuclear fuel, or any purchased fuels; and provided that earh City stipulates and agrees with the Agency ~ ra that Power and Energy generated b clause c by (iii) Facilities shall not be taken into or transmitted through any of the d ' City's transmission lines or used by the City for the operation i of its electrical system except to the extent expressly :F permitted under the provisions of subsection 3(A)(4) below. (2) Each City binds itself to pay for all Power and G ,J# Energy purchased or otherwise acquired by it from the Agency pursuant to this section 3, said payment to be made at the ' rates and charges established pursuant to Section 7 of this Contract. E , •r ~l P f r C0~~2V 1 (3) Notwithstanding the foregoing provisions of subsection 3(a)(1) above, each City reserves and shall have the right to purchase or exchange Power or Fnergy (i) on an emergency, maintenance, or ^tand-by basis or (ii) on the basis I of economic dispatch between the Cities + and Brazos Electric Power Cooperative, Inc, (Brazos), or any one or more of such ` entities or (iii) under the existing pooling agreement between the Cities and Brazos and future pooling agreements among the foregoing and others, all, or any combination thereof, and the Agency; provided that each City stipulates and agrees with the r Agency that Power and Energy generated by clause (iii) Facilities shall not be purchased, exchanged, taken into or S i transmitted through any of the City's transmission lines or used by the City for the operation of its electrical system except to the extent expressly permitted under the provisions of subsection 3(a)(4) below. (4) Each City agrees that Power and Energy generated ;f by clause (iii) Facilities (regardless of which City owns such clause (111) Facilities) shall not be taken into or transmitted w r through any of such City's transmission lines or used by such City for the operation of its electrical system or exchanged or sold by such City to any other City or other entity except as "ru follows: , (I) Power and Ener ° 9Y generated by clause (iii) Facilities may be taken and used by a City pursuant to i bb -3- ova Flu C this subparagraph (I) to the extent, and only to the extent, required to supply the excess, if any, of the ¢ City's requirements for Power and Energy at any time above the maximum amount of Power and Energy which is then available or could then be made available (if requested) from the Agency to supply such requirements,$ Afrd'o! (II) Power and Energy generated by clause (iii) Facilities may be taken and used by a City pursuant to this subparagraph (II) during any month to the extent, and only to the extent (if any), that the City reduces the amount of Power and Energy which would otherwise 1 4, have been taken and used by the City during such month s'? as authorized in subsection 3(a)(1) or subsection 3(a)(3) hereof from then existing Fr "j clause (i) Facilities or clause (ii) Facilities which r t ♦yare capable of generating such Power and Energy at a cost to such City equal to or less than the cost of such Power and Energy if it had been purchased from it " the Agency; (I1I) A City which owns or operates clause (iii) Facilities may generate Power and Energy in such facilities and transmit same through its transmission lines to the extent, and only to the extent, that such V City or other Cities are authorized and permitted to b^r -4- Ca8I 1U i use such Power and Energy for the operation of its or their electrical system under the foregoing provisions i of subparagraph (I) or subparagraph (II) of this subsection 3(a)(4), Each City stipulates and acknowledges that the purpose and intent of the foregoing subparagraphs (I), (II) and (III) are to insure and require that, during any month while a City takes and uses Power and Energy generated from any one or more clause (iii) Facilities, the amount of Power and Energy F~ purchased and received by such City from the Agency during such month will never be reduced below the amount thereof which } would have been purchased and received by such City from the Agency if no clause (iii) Facilities were ever owned or constructed by any of the Cities. 'o dr +J J M ''.~i } } 't . J a 1 1} ~F, ' ' N {~~1, " t F, ~ l z. aW 1 X " r , . f •~,f1rIM1!a.,a.w.. Me K.w na♦. A i w..t.r .x«...,....... k 1. ' , } co"ORMD CO►Y k POWER SALES CONTRACT BETWEEN TEXAS MUNICIPAL POWER AGENCY i AND ` CITY OF BRYAN, TEXAS I CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS 1 X11. r 1 1 a A k e ,r ,y +ti ti. iY) ♦ ' T ♦ J. y A IA r' a s S f .fi a r. C.i1 4 7 i r I Mad: Sep-ember 1 1976 i ' ~ti i 1 TAsm or comim Section 1: Terse of Contract... Section 3. De"tloos...................................................... 1 Seedon 3: Sale and Purchust of Power and Energy 3 Secdon 4: Performance of Cetlefe Setvlees . . 4 Section I. Delivery of Power and Energy S Section 6: Annual System Budget.. 6 Section T Rata and Charges.............. 6 Section d: Meter Readings and Payment of Bills Section 9: Meter Testing and BilUng Adjustment , , , 7 L Section 10: Payments to Consdtute Operating Expertsse of City System, , 7 Section ii: City Rate Covenant. 7 Section 12: Ct*enants of the Agency.......... 7 Section 13: Project Approval and Rights of Cities when a Project is not Approved. g Section /f: Debt Service Guarantee; Operating and Maintenance Expenses.. 10 Section IS: Remedies in Event of Default. 11 Section 16.^ Re-creation of Agency. 12 . t, Section 17: Payment Due Dates and Delinquency. 12 a_ Section Is. Power Sales Contracts. 17 Srctivn 19: Continuation of Services. 13 Section 20: City Not to &11 its Electric System. 11 Section 21: Assignment of Rights of a City. •w5 ^ # 9 13 Section 22: Dissolution of the Agency..... 13 Senlnn 21: Force Majeure. ' Section 24: Insurance. 11 Section 23: Report. t Section 26: Records 'and Accounts... 14 Section 27: Access. 14 t Sfcflon 28: Govemm0111 Rates, Regulations and Laws 114 Section 29: Easements. Section 30: Cancellation of Prior Contract.. , IS 1 Section 31: Notices.. l! Section 32: Severability. 1 Section 33: Contracts to be Separate. 13 i s • t 9 I r f . POWER SALES CONTRACT BETWEEN f TEXAS MUNICIPAL POWER AGENCY { AND E CITY OF BRYAN, 'T'EXAS i CITY OF DENTON, TEXAS Cfl'Y OF GARLAND, TEXAS CITY OF GREENVMLE, TEXAS This Contract, made and entered into as of the Ist day of September, 1976, by and between the Texas Municipal Power Agency, a municipal corporation and political subdivision of the Slate of Texas, and the City of Bryan, the City of Denton, the City of Garland, and the City of Greenville, Texas each of which cities is a municipal corporation of the State of Texas and a home rule city (herein collectively called "Cities" or individually called "City"). WITNeasLTH: ! WHsxeAs, each City has need for an economical, reliable source of Power and Energy to meet the growing demands of its customers and has determined to purchase such Power and Energy from the Agency; and WHEREAS, the Agency proposes to construct or acquire electric generating plants and transmission lines or to acquire ownership interests therein, and to purchase or otherwise obtain Power and Energy for the purpose of supplying Pnwer and Energy to each City and others; and WHEREAS, each City desires to purchase. and the f gency desires to sell Power and Energy on r the terms and conditions herein set forth; i Now, THEREFORE, in consideration of the mutual undertakings herein contained, the Agency and each City agree as follows; ' Section It Term of Contract. This Contract shall become effective upon the delivery to the Agency of the proceeds of the initial series of Bonds. Subject to the provisions of Sections 16 and K' 19 hereof, this Contract shall remain in effect for a period of thirty-five (35) years from the date hereof or until such time as all of the Debts of the Agency shall have been paid (or provision for such payment shall have been made), whichever Is later, Section 2s Delinfliom, As used herein: (a) "Act" shall mean Chapter 166, Acts of the 63rd Legislature, Regular Session, 1973, as amended by Chapter 143, Acts of the 64th Legislature, Regular Session, 1975, and all laws amendatory thereof or supplemental thereto, l (b) "Agency" shall mean the [eras Municipal Power Agency as created and established (pursuant + to the AM) by concurrent ordinances adopted by the governing bodies of the Cities, or its successor. (c) "Annual System Costs" shall meA, with respect to a Contract Year, and to the extent not f paid or to be paid from the proceeds of Bonds or other funds legally available to the Agency, all costa and expenses of the Agency that akt paid or Incurred during such Contract Year and are allocable to the System, Including, but not limiter -.o the payment of the operating and Maintenance Expenses of . , the System, all costs, chat", and expense of replacements and renewals of the System and all taxes, asseuments or -other governmental charges lawfully Imposed on Agency or on the revenues of the System or payments In lieu thereof, and the deposit or psymert of any and all amounts which the Agency may now and hereafter become obligated to deposit Into any fund or pay from revenue of the System, by law, contract, or any Bond Re tolutioo. (d) "Annual System Budget" shall mean, with respect to a Contract Year, the budget of the Agency prepared in accordance with Section 6 hereof for such Contract Year or, in the can of an amended Annual System Budget, for the remainder of such Contract Year, (e) "Approved Project" shall mean a Project which has been approved pursuant to section 13 of this Contract. The term does not include Projects which may be approved after the Agency Is recreated pursuant to Section 16 of this contract. } (f) "Bonds" shall mean all bonds issued by the Agency pursuant to the Bond Resolution. , (g) "Bond Resolution" shall mean the resolution authorizing the issuance of the "Texas Municipal Power Agency Revenue Bonds, Series 1976," and any resolution subsequently adopted by the Agency which authorizes the issuance of Bonds, including refunding Bonds, on a parity 1976 Bonds. Subject to the provisions of paragraphs (a) and (f) of Section 14, In a therdof c e events that (i) a City disapproves a Project (pursuant to Section 13 hereof) and elects Option One or (ii) the Agency Is recreated pursuant to Section 16 hereof and entities other than all of the Cities of Bryan, Denton, Garland and Greenville contract with the Agency to provide moneys for the payment of any obligation of the Agency, obligations thereafter issued shall not be on a parity with the Strict 1976 Bonds, and such obligations, if any, shall not be deemed to have been issued pursuant to the Bond Resolution. f (h) "Contract Year" shall mean the final year of the Agencv as from time to time ..'etermined I,v the Agency: provided, however, the first Contract Year of the Agency shall begin on the effective date of this Contract and shall end on the last day of the fiscal year of the Agency within which this Contract becomes effective. (1) "Debts" shall mean Bonds and Subordinated Indebtedness, as defined in the Bond Resolution, together with Interest thereon, and redemption premiums, if any, (1) "Debt Service" or "Debt Senice Requirements" shall mean, with respect to any period, the net aggregate of the amounts required to be paid during said period on any D~ x outstanding as the same shall become due (k) "Development Project" shall mean any one or more of the following: (i) repair, replacements, or modifications to an existing generating facility owned in whole or in part by the Agency, and which are designed to Increase or maintain an operating efficiency of the facility of (ii) preliminary and j developmental work to determine whether any work should be undertaken as a Project, or engineering, legal, and Anandal studies in coonection with the pluming, development or utilization of power resources, or (Iii) any purpose for which proceeds of Bonds may he expended under the Act, except a Project. The Agency may Issue Sands (in a separate series or eomSined with Bonds being issued for other purposes) to provide funds for a Development Project upon compliance with the provisions for the Issuance of Bonds as set forth in the Bond Resolution, but the approval of the Cities, pursuant to Section 13 hereof, shall not be required, (1) "Energy" shall mean kilowatt-hours (kwh), (m) "Net Energy For Load" shall mean a City's net Energy from others minus Energy delivered to others at the Points of Delivery t uring thenperriiodeneder consideration. j (n) "Operiting and Maintenance Expenses" shall mean all expenses incurred In the operation and ! mainteaat►ce of the System and the Agency which ate properly accounted for such purpose under 2 i generally accepted accounting principles. Such term does not Include depreciation or obsolescence charges or reserves therefor, Interest charges and charges for the payment of principal, or amor&sdon, of Bonds or other indebtedness of the Agency. (o) "Points of Delivery" shall mean the points on the System of, or available to the Agency, as set forth In Exhibit A, as amended from time to time by the Agency and the City concerned, at which Power and Energy are made available to a City pursuant to this Contract. (p) °Power shaii mean kilowatts (kw). (q) "Project" shall mean one or more of the following; (f) any power gene.ating facility (or 1 Interest therein) to be constructed or acquired by the Agency as well as fuel therefor and any trans- mission facility required to connect or Interconnect such generating facility with a City or others, or (11) any addition or improvement to a power generating facility which is then owned, in whole or in i part, by the Agency, or (iii) any contract right to purchase or receive a power supply or transmission E capacity (a) by the making of a prepayment of capital costs which are associated with the supply or capacity so purchased, or (b) the execution of a take or pay contract having a duration of more than 10 years, including any renewals thereof, or (c) the execution of a contract to purchase Power or Energy (either or both) on an all requirements basis. The term does not include any facility financed with the proceeds of Special Contract Obligations as permitted under and defined in the Bond Resolution. (r) "Rated Capacity" shall mean the maximum load expressed in net kilowatts (kw) that a generating source (as Identified in the definition of Project) is capable of supplying under good operating conditions. (s) "Sysleni" shall mean the Agency's interest in all properties (owned or operated by or on behalf of the Agency) which are financed, in whole or in part, through the issuance of obligations by the Agency for Approved Projects. System Development and Reliability Expenditures, and Development Projects prior to the time one of the Cities disapproves a Project under the provisions of Sxtion 13 ' and ek.:ls O,,aon One under paragraph (d) of Section 13. The term also includes any contract for pro0d.: } services or Power and Energy, either or both. Tt+e initial S}stem is hereby designated as S}stem A. The term does not include the Agency's interest in any facility financed with the b proceeds of (i) Special Contract Obligations issued by the Agency as permitted under and defined in the Bond Resolution or flit bonds issued to finance any Project %Wch is not approved by all of the Cities if a City or Cities which disapprove a PWu ;t elect Option One under Section 13. (t) "System Development and Reliability Expenditures" means those expenditures which the Agency determines, under prudent utility practices. should be expended over a given period of time for (i) transmission and related facilities to Increase the reliability of the delivery of Power and Energy by the Agency or (ii) the exploration for, development of or the acquisition of a fuel supply or supplies In order to provide fuel for generating facilities which are not then owned or in the process of j construction for and on behalf of the Agency, or (iii) repairs, replacements, of modifications to an existing generating facility (owned in whole or in part by the Agency or under construction by it) which are designed to increase the Rated Capacity of such generating facility. Such expendisura whkh are to be paid from the proceeds of a series of Bonds shall be considered a tingle Project (u) "Uniform System of Accounts" and all other accounting methods and terminology contained or referred to in this Section or clsewhere in this contract means accounting principles, methods and terminology followed and construed, as nearly as practicable, in conformity with the Uniform System of Accounts for Class A and Class B Public Utilities and Licensees and accounting rules and regulations thereunder prescribed by the Federal Power Commission for privately owned power companies which are subject to its jurisdiction and engaged In business comparable to the business of the Agency, as amended from time to time, or such other system as may be required by r+v regulatory agency. Section 31 Sale and Purchase of Power and Energy. (a) Each City during the time this Section is applicable shall: (1) Purchase and recciva from the Agency all Power and Energy which it shall require for the operation of Its electric system in excess of the amount (1) supplied by any generetlon and I transmission facilities owned by it on the effective due of this Contract, including generating and transmission facilities under construction on such date, and improvements or extensions of generating facilities which Increase the Rued Capacity of same so long as the increase during any period of two successive Cornet Years does not exceed 10% of the same's Rued Capacity at the beginning t of such period, provided the Cities and the Agency may, in writing, waive such 104 limit, and (ii) supplied from any generation facility primarily fueled from and the construction and operation of which is incidental to the disposal of solid waste that Is hereafter constructed and owned by one i or moro of the Cities, together with any transmission facilities that are necessary for the transmission { of Power and Energy therefrom; and (2) Binds itself to pay for all Power and Energy purchased or otherwise acquired by It from the Agency pursuant to this Section 3, said payment to be made at the rates and charges established pursuant to Section 7 of this Contract. The foregoing provisions of this Subsection (a) shall have no application to the purchase or exchange of Power or Energy (1) on an emergency, maintenance, or stand-by basis or ii the by n e barb of economic dispatch between the Cities and Brazos Electric Power Cooperative, Inc, on (Bruns), or any one or more of such entities or ( r i l ) under the existing pooling agreement be- tween the Cities and Brazos and future pooling agreements among the foregoing and others, all, or any combination thereof. and the Agency. (b) In the event that the Agency is not able to supply the Power and Energy required or re- quested under its power sales contracts, it shall allocate its available Power and Energy monthly among the (1) Cities pro rata in accordance with their respective Net Energy for Load during the corresponding month of the preceding Contract Year unless a governmental agency requires a different ' allocation and (il) other power purchasers as may be provided by contract, The Age cy shall devote Ei! its best efforts to the acquisition, by purchase or otherwise, of the Power and Energy required to meet ! the requirements of its power sales cortra.rs. During the period the Agency is unable to supply Power and Energy required or requested under its power sales contracts. so that an allocation of Power and Energy Is made. the Cities shall he permitted (during such period) to purchase only such amounts of n: Power and Energy as are not supplied h) the Agency. (c) The provisions of this Secran dr not apps) to any City from and after the effective date a City (1) disapproves a Project under the pro% sions of Section 13 and (lit elects Option One; not shall the provisions of this Section apply to a City which disapproves a Project and elects Option Two. Seaton 4e Perfornaae of Certain Services. (a) In addition to the delivery of Power and Energy hereunder and the performance of all acts and actions incident thereto, the Agency agrees that, to the extent not performed pursuant to or as a consequence of any other Section of this Contract, it will either perform or cause to be performed, to a prudent and economical manner, the following services concerning the interrelated activities of the Agency, the Cities and others, as welt as various combinations of such parties: (1) comprehensive planning for Power and Energy and the transmission thereof to mutually agreed upon load centers; (2) undertake or cnurdmite iod monitor the design, construction and operation of joint facilities; (3) plan for and undertake or coordinate and monitor flit economic dispatching of Power I and Energy of the System im,l the sstrcms of the Cities and other entitles (to the extent permitted by contract) to which such s)vrcms are interconnected, pursuant to subsequent agreement(s) be- tweed the Cities, the Agency and any uther entity; (4) provide occounting and c.nt allocation services; and 4 {S) such other services as the Agency and a City, from time to time, shall determine to t be appropriate and necessary. , (b) City hereby binds itself to pay for the cost of the services that are to be provided by the Agency pursuant to Subsection (a) of this Section a, such payment to be made at the rates and charges established pursuant to Section 7 of this Contract. Secure St lkHvery of rower teed ExIeW. (a) The Power and Energy to be furnished under this Contract shall be alternating current, sixty (60) hertz, three-phase, subject to conditions of delivery and measurement as hereinafter provided. (b) The Points of Delivery, delivery voltage and other conditions of service shall be in accordance with the service specifications set forth in Exhibit A attached to this Contract, as amended by the Agency and the concerned City from time to time. (c) The City shall make and pay for all connections between its facilities and the System owned by or available to the Agency at the Points of Delivery. The City shall install, own and maintain any necessary substation equipment at the Points of Delivery from the System of or available to the Agency I and shall install, own and maintain switching and protective equipment of adequate desfgn and sufficient capacity beyond such Points of Delivery to enable the City to lake and use the Power and Energy supplied under this Contract without hazard to the System. In the event that the Points of Delivery set forth in Exhibit A are not on the City's electric system, the City shall arrange for transmission of ' Power and Energy sold under this Contract to its system, including the installation and maiateaance of any facilities required for it to receive such Power and Energy into its system. (d) Except as otherwise agreed, metering equipment shall be furnished, inclalled and maintained by the Agency at each Point of Delivery to the City at the low vollate Side of the transforming equipment located there. Loss adjustments for low voltage side or remote metering shalt be as specified in said Exhibit A or as otherwise agreed by the parties. Section 6r Annual System Budget s (a) The Agency shall prepare or cause to he prepared nn Annual System Budget at least ninety s (90) days prior to the beginning of each Contract Year which shall itemize estimates of Annual System Costs and all revenues. Income or oihcr funds to he applied to such Annual System Costs for and applicable to such Contract Year. Such Annual System Budget shall also utilize and take into account forecasts, which shall be furnished by each City to the Agency at least one hundred twenty (120) days prior to the beginning of such Contract Year, of the monthly peak Power and Energy requirements estimated to be obtained from the Agency during such Contract year. (b) After consideration of any comments of the Cities, the Agency, not less than thirty (30) days prior to the beginning of such Contract Year, shall adopt an Annual System Budget for such Contract Year and the rates and charges for Power and Energy to be furnished and the services to be performed during such Contract Year and shall cause copies of such Annual System Budget and rates and charges to be delivered to the Cities. Provided, however, the Annual System Budget for the first Contract Year shall be prepared, considered, adopted and delivered In the manner which the Agency deems best. r (c) If, at any time or from time to time after the adoption of the Annual System Budget In accordance with Subsection (b) of this Section 6. the Agency estimates that the Annual System Costs or revenues for the Contract Year or any part thereof for which such Annual System Budget applies will be greater or less than the Annual System Costs or revenues set forth In the Annual System ` Budget, or that the amount of Power and Energy which the Agency expects to deliver during such contract Year or any part thereof is greater or test than the amount of power and Energy which the l Agency estimated at the dme of adoption of the Annual System Budget would have ;xen delivered during such Conlrect sear, then the Agency may prepare an amended Annual System Budget. The amended Annual System Budget shall be timely adopted by the Agency and transmitted to the Cities. (d) In the event a budget for the ensuing Contract Year has not been adopted on or before i the lint day of the Contract Year, the total amount budgeted for the preceding Contract Year shall be the total amount of the temporary budget for such purposes for the ensuing Contract Year. The temporary budget shall be effective only until such time as a permanent budget has been Molly adopted and approved. The chief administrative officer of the Agency shall be responsible for the allocadon for expenditure of the total amount of the temporary budget until a permanent budget is adopted and approved. Section 7r Rata and Charges. (a) The rates and charges of the Agency to the Cities for Power and Energy and for services supood shall bee (1) non-0iscrinunatory, and i (2) fair and reasonable, and be based upon the cost of providing the Power and Energy or providing the service with respect to which the rate or charge is based, and (3) adequate (after raking into consideration other moneys received or anticipated to be received) in each Contract Year to pay or make provision for paying Annual System Costs. (b) %'hcn the Board of Directors proposes to establish a new rate or charge, as determined under Schedule B. it shall give each City wriven notice that it proposes to establish a new rate or charge for Power and Energy or for services (setting forth such charge) on 3 date certain (which shill not be lees than 120 days from the mailing of the notice to each City, all such notices to he mailed simultaneously), Except as provided In paragraph (c) hereof, no charge or adjustment in any rate or charge made by the Agency shall be eRective if any City, by resolution or ordinance of its governing body, enters an objection to such adjustment in a rate and charge by causing to be filed with the chief administrative t officer of the Agency a copy of such resolution or ordinance more than 30 days prior to the suggested effective date of the proposed new rate or charge. In the event a City enters an objection to the charge or adjustment ir a rate or charge, the effective date of the charge or adjustment shall be j postponed pending the resolution of the dispute In the following manner, ! (1) The Cities may ' y jointly sel.Yt an independent consultant or consultants to prepare a rate evaluation and schedule of proposed rates and charges, provided if such joint selection Is not made within 30 calendar days e! the filing of an objection (evidenced by the passage of a resolution or ordinance) such independent consultant shall be appointed by the Board of Directors of the Agmy; 4 (2) the report of the independent consultant shall be submitted to the Agency and each City for consideration; and (3) If the report of the independent consultant is approved by the governing bodies of the Agency and the Cities the same shall be effective as of the date originally suggested by the Agency In Its nodce• If the adjustment is not approved or an agreement reached within IS days after the receipt of the report of the Independent consultant, then the Agency, and the Cities shall each have all of the rights and remedies at law end In equity except that In no event shall any City be relieved of Its obligation to the holden of Bonds under Section 13 of 14 of fhb Contract. b I i (e) The Agency shaU diligently enforce and take all reasonable steps, actions and proceedings necessary for the.linforcement of all terms, covenants and provisions of any power sales contracts The Apwf sbail not amend this Contras without first having secured the prior written consent of all Cities, but no amendment shall be leads in Section 14 or Section 16 of this Contract (d) The Agency covenants Pod agrees that it will operate, maintala and manage its System or cause the same to be operated, maintained any! managed in an efficient and economical manner, Cori- :latent with sound utility practice and in accordat;ce with standards normally used by utilities owning like properties. (e) The Agency covenants that it will not make a chop In any Bond Resolution so as to create additional Funds (except those now established by Article V of the resolution stAhorizing the hisuasee of the Series 1976 Bonds) without the approval of such chaps by the governing body of each City, nor shall any change be made in the amounts required to be paid Into, accumulated In or maintained in the Bond Fund, Reserve Fund or the Contingency Fund, except as provided in the resolution author(ring the Series 19'6 Bonds, without such approval. Settles 13. Project Approval and Rights of Cities wises a Prat" Is soil A"need: (a) Except as to Bryan Lignite Number One (hereby approved as a Project) prior to the Issuance and sale of Bonds to provide money for each Project, the Agency shall submit a written notira to each City as required by the provisions of paragraph (b) of this Section. If a Project has been approved pursuant to paragraph (c) of this Section, the Agency may thereafter issue, sell and deliver Bonds in order to fully provide funds for such Project, including the design, construction, and the placing of same in commercial operatirn, or to meet any requirement of law, In- eluding those of a regulatory agency having jurisdiction, o; to pay judgments or casualty losses not covered by Insurance, or to meet a safety or overriding public necessity. i (b) A written notice of the Agency's intention to provide funds (through the iuuance of Beads) i for a Project shall contain a general description of the Project, the projected sources and uses of funds for all aspects of the construction and testing of the Project, and a statement to the effect that, In the opinion of the Agency, the Project is necessary for the Agency to meet its commitments under power ss%i contracts and is economically feasible, together with Tn explanation of the Agency's basis for this opinion. Within 60 days a'ter receipt of such notice, each City shall give the Agency j written notice of its approval or disapproval of the Project. if a City faits to give the Agency such i written notice within such 60-day period, then said City shall be deemed to have approved the Project. i t (c) If all of the Cities (who have approved all previously Approved Projects) approve: a Project then the Agency may proceed with the issuance, sale aril delivery of Bonds to provide such Project. It one or more of such Cities should disapprove the Project, then the Agency shall give each such City written notice which of the Cities approved the Project and which of the Cities disapproved the Project. Any of the Cities who approved the Project may then give the Agency written notice of its or their desire that the design ana vtsuction of the Project be commenced; and, if the Agency de- termines that the Project is stiG Ik.. it may proceed with the Issuance, sale and delivery of such Bonds, but the City which failed to approve such Project shall be required (within 60 days of being notified by the Agency that it will proud with the issuance, sale and delivery of Bonds for such f Project) to elect to limit its responsibilities under this Contract under Option One or Option Two y u act forth in paragraph (d) of this Section. , s (d) 1111 any City disapproves a Project, then within the time specified In paragraph (c), such City shall, by it resa'ation or ordinance adopted by its go-ierning body, elect which of the following options shall gowm its future responsibilities under this Contract, It the City disapproving a Project t hereunder fails to timely communicate to the Agency as to the election of an option under the provisions i of this Section, it shall be conclusively presumed that Option Two has been elected. a t , , , (1) Option One: (aj Each City shall be entitled to schedule and receive, each month for its own account, the tame proportion of the available Power and Energy from the System as its Net Energy for Load relates to the total Net Energy for Load of all the Cities for the corresponding month of the completed Contract Year next proceeding the effective date of the option, (b) As consideration for such Power and Energy, and the right to purchase the same, each City shall, each month, pay to the Agency its proportionate sbare of the Annual i System Costa equal to the percentage of it's Net Energy for Load of the Net Energy for Load of all Cities for the Contract Year next precceding the effective date of the option. (c) Each City's obligation under Section 14 of this Contract shall be equal to the percentage as calculated under the preceeding sentence. (2) Option Two: (a) During the balance of the term of this Contract after the effective date of the k < option, the amount of Power and Energy required by the City exercising the option to be a purchased under Section 7 of this Contract shall be limited. Such City shall, in each cal- endar month, take or pay for an amount of Power and Energy equal to the amount of ` Power and Energy purchased by such City from the Agency during the corresponding month f of the 12 consecutive month's period preceding the calendar month of the effective date of the exercise of the option, or such other amount of Power and Energy as may be from time to time agreed upon by the City, the Agency and the other Cities; and the Agency shall no longer be required to provide any Power and Energy in excess of such amount, and t the City shall be relieved of its obligation to purchase all of its requirements Lrom the ! Agency. The Power and Encr;y furnished to such City shall be billed by the Agency II at rates and charges as from time to time adopted pursuant to Scction 7 of this Contract t The calculation of the limiting City's obligation under Section 14 of !his Contract shall assume such City's Net Energy for Load for the purposes of said calculations is equal to f~ such City's Net Energy for Load in the completed Contract Year nett preceding the effective date of the option. ~y D (e) In the case of each option! (I) The effective date of the option shall be the first day of the Contract Year which is more than 90 days after the dale a City disapprovcs a Project, as permitted in paragraph (c) " of this Section. (2) The right to schedule Power and Eneriy is subject to outages for maintenance and operating emergencies. tp 0) The amount due from a City (which disapproves a Project) Eunder paragraph (d) (I) or } paragraph (d;(2)) shall be due and payable irrespective of whether my Power and Energy is s delivered or made available for delivery to such City, (This also applies to all Cities after the j effective data of the exercise of Option One by any City.) (4) The City which exercises an option, pursuant to paragraph (d) shall not thereafter be entitled to approve or disapprove any subsequent Projects, (S) Amounts due from entities other than the Cities shall be taken into account in cal- culating the amount due from the Cities. etlt, I (f) After a City has disapproved a Project under paragraph (e) of Ibis Section, it may thereafter revoke such action and approve the Project provided: r (1) the Agency and each of the Cities approva the revocation, and 9 ar, I I (2) in order to pay a pro rate part of expenses Incurred (including Debt Service) since the Project wu'disapproved, the City agrees to assume or pay such amount u may be determined by the Agemult and the Cities. Section 241 Debt Service GanMNi OfessNng std Mateteswa Eapeaa. (a) In any instance where the amount of money on deposit in the Bond Fund (created by the Bond Resolution) is not the full amount then required to be on deposit therein, without giving consideration to transfers made from other than the Revenue Fund or from Bond proceeds (provided that transient may be made from the Reserve Fund to the Bond Fund for not more than two (2) consecutive calendar months) each City shall be obligated to make a payment the aggregate amount of which shall be the amounts that ate necessary to establish or reestablish the amount then requited. under the terms of the Bond Resolution, to be on deposit in the Bond Fund, the Reserve Fund, and the Contingency Fund. The percentage share of the payment to be made by each City shall Initially be u follows: City of Bryan, Texas:... 22.73% r . City of Denton. Texas 20.349E City of Garland, Texas. 47.669E i , City of Greenville, Texas: 9.27% Except as set forth In Section 13(d) such percentage share of the pavment to be made by each City shall be adjusted at the beginning of each Contract Year, Such adjustment shall be made by calculating the percentage relationship that each City's Net Energy for Goad for the Contract Year immediately preceding the Contract Year in which the adjustment is being made bean to the total aggregate Net Energy for Load of all Cities for such Contract Year, and the sum of the adjusted r ~I percentages shall equal WO%. a ! The payments required to be made to said Bond Fund, Resent Fund or Contingency Fund (any one or all of such Funds) shall be paid by the Cities in the percentage shares determined above and rls,' such payments shall be made direct to the custodian of the respective Funds as established in the Bond M Resolution. Each City unconditionally covenants the payment will be made, if required, in the amount and in the manner prescribed. The provisions of this covenant are for the benefit and protection of the j Agency. the Cities and the owners and holders of Bonds, it being recognized that the holders of such j Bonds shalt be thlyd•pAriy beneficiarles of this covenant, and it is understood by the contracting parties that the purchaser of Bonds has and will agree to the purchase of Bonds conditioned upon this covenant. 1 (b) In any instance, except that occasioned by the failure of a City or other power purchaser to pay t' the amount it is required to pay for the purchase of Power and Energy, in which the funds of the Agency e are insufficient to pay Operating and Maintenance expenses or other expenses (except those for which i t provision is made in paragraph (a) hereof) payments shall be paid to the Agency by the Cities in the yy+, percentage share determined under paragraph (a) of this Section 14, 2,y t,I (c) A new power purchaser (with the approval of the Agency and the Cities) may assume r primary liability for the obligation to make payments under this Section with respect to Debts of the Agency incurred prior to Its becoming a power purchaser, but the soma shall not discharge the liability of those who were obligated when such Debts were incurred (who shall remain secondarily liable). (d) In the event the Agency is held to bs in default under the provisions of the Bond Resolution (by reason of the inadequacy of payments required to be made by the Cities under the provisions of r this Contract), the Cities shall cure the default by mAking payments in the time proportion as provided In paragraph (a) of this Section. I (e) In the event a City disapproves a Project under Section 13, or if a City elects to with- , , draw from the Agency under Sectio:t 16, then each City shall continue to be obligated under para. graph (a) of this Section with respect to Bonds theretolore Issued and Bonds thereafter Issued to fully provide funds for tech Project (u contemplated by the second sentence of Section 13(a)j and In 1 10 k. addition, if a City elects option One, then all of such Cities shalt be obligated under paragraph (a) of this Section with respect to Bonds thereafter Issued for Development Projects described in clause (1) of the definition of that term. It a City elects Option Two, then all of such Cities shalt also be obligated under paragraph (a) of this Section with respect to Bonds thereafter issued for Development Projects and for System Development and Reliability Expenditures and Bonds Issued for Projects thereafter approved. For and in consideration of the payments to be made by the Cities under this Contract (including those under this Section) the Agency agrees to use its best efforts to deliver Power and Energy from Projects, to such Cities, under the terms of this Contract, and such payments by the Cities shall be in consideration for the Agency's agreement to deliver such Power and Energy; but the failure of the Agency to comply with such agreement shall not relieve any City of its obligations under paragraph (a) or (d) of this Section, which obligations shall be unconditional and absolute. (f) In the event the Agency is recreated under Section 16 so the new entity assumes primary liability for a pro-rata share of the Debts of the Agency then outstanding (as distinguished from the creation of a new system (not financed under the Bond Resolution) with respect to projects thereafter approved) then the new entity shall thereafter be included In the calculation of the percentage share of ! the payment to be made under paragraph (a) of this Section, for the purpose of determining such r primary liability; but in no event shall the Cities of Bryan, Denton, Greenville and Garland be relieved of the obligation each has assumed (by the execution hereof) to collectively pay the entire amount (based upon the percentage of Net Energy for Load) required to be paid under paragraph (a) of f this Section with respect to all Bonds theretofore or thereafter issued without regard to such new entity Section IS: Remedies in Event of Default. (a) ( I ) If any City fails or defauln in meeting the terms. conditions and covenants of this contract (other than a default in payment for which provision is made in subsection (b) of this Section) and 3 such default continues for a period of 0 days. the Agency shall rive notice (in the manner con. templated by Section 31 of Ni Contracts to the Citics. The defaulting City shall from the date of the "t + mailing of such notice, have a period of 30 days to cure the default i + r ~ (2) It any City fails to rnaAe auy pa}ment I hereinafter called a defxdt in pyZmeul to the Agency 1 R that is required to be made under the provisions of this Contract, and such default in payment con- tinues for a period of fifteen (15) days, the Agency shall give notice (in the manner contemplated v by Section 31 of this Contract) to Cities. The defaulting City shall, from the date of the mailing of such notice, have a period of thirty (301 days to pay the full amount then due to the Agency, together L: with interest thereon, at hereinafter providtd, (3) If the City does not cure its defaalt within such period of thirty (30) days, then, so long as ' sue •awa-t^ ~+•r■...■i.ad" ^oR^ save otliEr ri hits which the Agency has under this Contract 5xrt and at law and in equity, the Agency may terminate all sefTce -io such City. Additionally, In the event of default in payment, the Agency ma- y cciarg;eTo atnd-UReTfrom suchCity each calendar month the amount which the Agency determines to be the difference between what the Agency would have received from such City under this Contract, for Power and Energy and services furnished and delivered ty to such City, had such City not been In default, and the amount. if any, which the Agency teceives from sales of such Power and Energy and services to the other Cities. or others, either or both. I Termination of service hereunder shall not reduce or change the obligation of the defaulting City under ,r y^ . , ' i 1 the other provisions of this contract. (b) If the Agency faits or defaults in meeting the terms, conditions and covenants of this p y'w. Contract, except Its covenant to use reasonable diligence to provide a constant and uninterrupted supply of Power and Energy contained in Section 12(b), and such default continues for a period r of 13 days after a City has given the Agency notice of such default in the manner contemplated In Section 31 of this Contract, then such City shall have all of the rights and remedies provided at law and in equity, except that in no event shall any of the Cities be relieved of Its obligation specified In Section 14. The delivery of available Power and Energy as provided In this Contract shalt be a ministerial duty of the Agency. I It I i ,y Section 16t Raereetlon M Agascy, Each City and the Agency recognize that pursuant to the Act the concurrent ordinances by which the Cities created the Agency reserved the right to the governing body of each of the Cities to join with the other Cities to provide for the re-creation of the Agency by the addition and deletion, either or both, of a public entity, as defined in said Act, so Ion; as there is no impairment of obligation of any existing obligations of the Agency. Each City covenants and agrees that it will not join with any or the other entities to recreate the Agency so as to delete one or more entities unless (I) the then outstanding Debts of the Agency have been paid or provision made for their payment under Article X1 of the Bond Resolution or (2) the Holden of at least 60% of the principal amount of the Bonds then outstanding approve the concurrent ordinance proposed for adoption by the Cities, or (3) the withdrawing entity contracts and agrees to continue to pay a fixed percentage (a determined by the Board) of the Annual System Costs (including the Debt Service Requirements oa the then outstanding Debts of the Agency) during the time such Debts remain outstanding, Such percentage shall be fixed by calcula'ing the percentage relationship of the withdrawing entity's Net Energy for Load (during £ the Contract Year in which such percentage was the highest) bean to the total aggregate Net Energy for Load of all Cities (during such Contract Year). The obligation contained In Section 14. as to ` the entity seeking to withdraw, shall remain unaffected until the Bonds permitted to be Issued by Section 14(0 have been paid and retired. No withdrawal shall be effective until such Indebtedness has been paid; and at such time this Contract, as to such withdrawing entity, shall terminate. From and after notice is given to the Agency of the intent of an entity to withdraw from the x Agency, no additional Bonds of the Agency shall be issued for a new Project which Involves any fd4 , additional payments by or guarantee or the Debt Service Requirements by such withdrawine entity. Each City covenants and agrees that it will not join with any of the other entities to recreate the s Agency so as to add one or more entities unless (1) the then outstanding Debts of the Agency have been paid or provision made for their payment under Article X1 of the Bond Resolution or (3) the s k Holders of at least 60MOof the principal amount of the Debts of the Agency then outstanding approve t E the concurrent ordinance proposed for adoption by the Cities, or 13) entity Will, added expressly a, either (as approved by the Agency and set forth in the concurrent ordinances) (I) assumes ` t the primary liability for the payment of for a pro-rata share A the Debts of the Agency (which shall not discharge the liability of those obligated when such Debts were or are incurred, %ho remain i secondisrtly liable) as well as the obligation provided in Section 14(c) and assume thereafter to pay kb ! Its share of the remainder of the Annual System Costs, ar (it) agrees it will be obligated only with respect to the payment of annual system costs for projects which are approved after the re-creation of k, the Agency, Section 171 Payment Drs Dates and Delinquency, r; b (a) In the event that a City (ails to make any payment at the time herein specified, interest on 't such delinquent amount shall accrue at the rate of ten percent (10%) per annum from the date such s payment becomes due until paid In full, and the Agency may Institute a mandatory Injunction requiring the payment of the amount due and Interest thereon, s chat too toobeainsttuted In Interest instituted In a court of competent jurisdiction, (b) All payments required to be made by the Cities under the terms of this Contract shall be v due and payable within thirty (30) days following the date the Agency renders the bill, and the Cities shall have no right of setoff, recouli or counterclaim against any pa)ment under Section 14(a) or that part of the Annual System Costs which are attributable to payments to be made Into the Bond Fund, the Reserve Fund or the Contingency Fund by any Bond Resolution or similar Funds estabtlshed for the payment and security of Subordinated Indebtedness (as defined in the Bond Resolution), which ace uWaditional. j (c) Should a dispute as between any City and the Agency arise as to whether the Agency ' is in compliance with Its covenants as contained herein, each City shall nevertheless be obligated 12 (1) to make the payments provided by paragraph (a) of Section 14 hereof and (2) to pay such amount of the Annual System Costs as may not be in dispute pending the resolution of such dispute, provided a City may elect to pay all such Annual System Costs, including any disputed amount. in the event a disputed amount of Annual System Costs is paid by a City the same shall be placed in escrow in an Interest bearing account by the Agency pending resolution of the dispute, but only the principal amount thereof shall be returned to the City. If the City elects not to pay the amount In dispute and the dispute is resolved against such City, the amount ultimately found to be due plus interest at 10% per annum (calculated from the date the same was originally due) shall be paid by the City within 1s days of the resolution of the controversy. Attorneys' fees shall be assessed as court costa. Seedota 11. Ponta Was Contmta, The Agency may provide Power and Energy and services pursuant to a power safes contract, upon such terms as may be approved by the governing body of w the Agency and, except as provided by Section 12(a), the Cities. Seedoo 191 Coodowdoo of Services. A City, unless it elects an option under Section 13 or withdraws under Section 16, shall have the right to the continued performance of services pro- vided under the provisions of this Contract for the useful life of the System by giving written t notice to the Agency at least S years prior to the scheduled termination of this Contract (as specf- Red in Section 1) provided that if such termination is occasioned by making provision for the payment of the Debts of the Agency, the notice may be given within 90 days of such provision being made. Such City shall be obligated to continue paying its proportionate share of the Annual System Costs. Stolen 20: City Not to Sell Its Electric System. Each City covenants that during the term of this Contract (or the extensions thereof) it will not sell or otherwise dispose of its electric utility distribution system in whole or substantially as a whole to any entity other than an assignee under Section 21 of this i Contract and. in the case of such an assignee, only with the written consent of the Agency and all Cities. ' Section 21: Assignment of Rights of a City. A City may assign any of its rights under this Contract to another entity, if permitted by applicable Taw, but no ,alt or other disposition shall rellc%e such City of its obligations under this Contract (including the obligations under Sections 10, 11 and 14 1 so long as any Bonds are outstanding. Section 22t Dissolution of the Agency, At such time as the Debts of the Agency have been paid or provisions made therefor pursuant to Article Xi of the Bond Resolution. and the Agency is dissolved, each City who has not made an election under Section 13 or withdrawn under Section 16 shall be entitled to an undivided Interest in the properties of the Agency in proportion to the amount paid to the Agency under this Contract. E s Section 23s Pone Hs)eore. (a) If for any reason of "force majeure" any of the parties hereto shall be rendered unable, wholly or In part, to curry out its obligations under this Contract, other than the obligation of the Cities to make the payments required under the terms of this Contract, then if such party shall give notice and the full particulars of such reasons in writing to the other party within a reasonable time after the occurrence of the event or cause relied on; the obligation of the party giving such notice, so far a it is affected by such "force majeure;' shall be suspended during the continuance of the inability then claimed, but for no longer period, and such patty shall endeavor to remove or overcome such Inability with all reasonable dispatch, The term "force majeute" as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders or actions of any kind of the Government of the United States or of the State of Texas or any civil or military authority, Insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraints of government and people, civil disturbances, explosions, breakage or accident to dams, machinery, pipelines, or canals or other structures or machinery, on j account of any other cause not reasonably within the control of the party claiming such Inability. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion i€ of the patty having the difficulty, and that the above requirement that any "force majeure" shell be 13 1 ( remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing parties when such settlement is unfavorable to it in the judgment of the piny having the difficulty. . (b) No damage shall be ra.ovettble (rem the Agency or the Cities by reason of the causes above mentioned. Seedoe 243 In, We. (a) The Agency shall maintain, of cause to be maintained in force for the benefit of the Agency, such insurance with respect to the System as shall be reasonably available and u is usually carried by municipal electric utilities constructing and operating generating and transmission facilities but, in the case of nuclear generating facilities, not less than will satisfy the requirements of federal and j state law and the Nuclear Regulatory Commission regulations and such other Insurance as is usually carried by municipal electric utilities owning like properties. Provided, however, in any event, the Agency shall maintain, or cause to be maintained, In force, insurance In such amounts and against such 4 risks u requL ed by the Bond Resolution. qM (b) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and t employees handling or responsible for funds of the Agency. (c) The obligation hereunder to procut. and maintain insurance with respect to a Joint Project, as defined in the Bond Resolution, shall be met if the entity acting as the manager of the Joint Project obtains and maintains the insurance required for the benefit of all owners of the Joint Project, as their Interest may appear. ' (d) The Agency may establish and create a special fund for the purpose of providing a self f insurance fund. Amounts to he deposited in or credited to such fund in any Contract Year shall be accounted for as Operating Maintenance Expenses. To the extent that monies are deposited in such t{ fund, if created, such monies may he invested in Investment Securltics, as defined in the Bond Rrsolu• lion. To the extent of the amounts held in such fund, the fare amount of appropriate insurance policies may be reduced. s 1~, v ' t Section 2S: Reports. The Agency will prepare and issue to eauh City the following reports for each fiscal year. (i) financial and operating statement relating to the System; 00 status of construction rot each facility constituting the System during construction; and (iii) analysis of operations relating to the System. Secdoe 26t Records and Accounts. The Agency will keep accurate records and accounts of the System Ind of the transactions relating to each facility constituting the System m well as of the a operations of the Agency In accordance with the Uniform System of Accounts, which shalt Include depreciation. Within one hundred twenty (120) days after close of each Contract Year, the Agency f shall cause such records and accounts and all transactions of the Agency relating to the System with r respect to such Contract Year to be subject to an annual audit by an independent certified public ` accountant. A copy of each such annual audit shall be sent by the Agency to each City. I } Seeders 2'!r Aeeeea. Each City shell at all times have reasonable access to examine any and all books and records of the Agency and to examine any facility of the System. The Agency and each City will give the Other the eight to enter the premises of the other at all reasonable times lot the purpose of repairing or removing facilities, reading meters and performing work Incidental to delivery and receipt of Power and Energy furnished hereunder. Secd" Hi Covernteental Rates, Regulailons and Laws. The Contract shall be subject to all valid rules. regulations and laws applicable thereto, As promulgated by the United States or America, the State of Texas, of any other governmental body or Agency hiving lawful jurisdiction or any authorised representative of agency of any of them. 14 i,, Secdort 291 Easements Each City agrees that the Agency or its agent shall (when permitted by existing easement)'have full access to such easements or over any easements, right-of-way or property held by such City if, and to the extent, required by the Agency for any and all purposes required for the System or any Project thereof. Section 301 Caeceliadoi of Prior Contrsec4 In connection with the issuance of $10,623,000 TltxAS MVN1CtrA1. Powall AGINCY R9vaNtl1 BoNDs, Slates 1975, the Cities and the Agency have heretofore entered Into a contract which is Incorporated in an Instrument entitled, "Contract for Develop. ment of Fuel Resource$, Planning Electric Generation Facilid" and Performing Certain Dudes," which contract was dated September 15, 1975; that such contract provided certain payments would be made by each City to the Agency foir the payment of debt service on the aforesaid Series 1975 bonds and maintenance and operating expseses of the Agency. The parties agree that upon the effective date of this Contract and the cancellation of said bonds, the pilot contract shall be cancelled in Its entirety and no payments shall continue to be made thereunder for any purpose and this Contract shall supercede such prior contract in every respect. Section 31t Notices. Any notice, request, demand, statement or bill provided for in this Con- tract shall be in writing and shall be considered to have been duly delivered when sent by registered or certilled mail, addressed as follows, unless another address has been designated, in writing, by the party entitled to receive same: Agency: Texas Municipal Power Agency City of Bryan 71l I Bosque Boulevard P. 0. Box 1000 ? Waco, Texas 76710 Bryan, Texas 77801 Attention: Executive Director Attention: City Manager City of Greenville P, 0. Box 1049 ; Greenville, Texas F" 't Attention, City Manager City of Denton Civic Building j Denton. Texas 76:01 Attention: City Manager ^ City of Garland P. 0. Box 401889 Garland, Texas 71040 Attentions City Manager Saetien 323 Seven Alley. The parties hereto agree that if any of the provisions of this Contract should contravene or I y held invalid under the laws of the State of Texas, such contravention or Invalidity shall not Invalidate the whole Contract but it shall be construed as though not containing that particular provision, and the rights and obligations of the parties shall be construed and in force accordingly. . ' Section 331 Contracts to be Separate. This instrument embodies four separate contracts between the Agency and each City. Termination of one Contract %hail not affect the others, i • 'a v Is i IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed in theft cor. poste mama and the!r corporate seals affixed, all by the proper officer duty authorised thereunto, ss of the day and yar Ant hereinabovs written. Taw MUNICIPAL POWER AGENCY By: /s/ C. E. DucxwoRrm (SEAL) ArTES7: By: /S/ JIM WHITE Secretary City of Bryan, Texas 1 (SEAL) By: /I/ LLOYD JOYCE r ATTEST: Mayor +I BY:........../s/ JOE E. ..EVANs ;r City SeMI&Y V City of Denton, Texas } > (SEAL) By: 11 ELINOR HUGHES Amin r .Stay or By:, /I/ BROOKS HOLT Chy Secretary v era City of Gadsnd, Texas t , (Seac) tt By: /s/ CHARLES a. CLACK ATTEST: Mayor By: .~I/ ALITA WATSON j ;fps , bt City Secretory U d F I ' City of Qreenville i~ r (SEAL) By:„ /s/ JOHN T. Gwrim ` Amu: Mayor ~t . By:. InENS WILSON City Clar16 i S EX=ff A POINTS Or DELIVERY : 1 8ryau 1. Bryan Plant: i Facilities Included are as follows, } (a) 138 KV littea (b) 200 MVA, 138/69 KV autotransformer (c) associated breakers, bus wort, switches, etc. 2. Nall Substation: Facilities Included are: (a) 138 KV lines (b) 200 MVA 138/69 autotransformer (c) 430 MVA, 343/138 KV autotransformer (d) 343 KV lines r' (e) associated breakers, but work, switches, etc, k 3. South East Bryan Substation: M1•e' FaciCdes Included are as follows: (a) 138 Mines (b) 200 MVA, 138/69 KV autotransformer (e) associated breakers, bus work, switches, etc. t~ ~ y t u Denloa: ii4r I. Denton Plant: t l.+ IL t r, Facilities included are as follows: (a 1,, (a) 138 KV lines } (b) associated breakers, bus work, twitches, etc. 2. North Denton Substation: Facilities Included era as follows: (a) 138 KV lines (b) 450 MVA, 3451138 KV autotransformer ' r (c) associated breakers, bus work, switches, eta G GUN" " . 1. Apollo Substation: j Facilities included are as follows: (a) 138 KV Interconnection with TP&L (b) associated breakers, bus work, switches, etc. 2, Oates Substation: I FaNllties Included are at follows: i (a) 138 KV Interconnections with TPAL tt (b) 430 MVA 345/138 KV autotransformer (c) 345 KV lines (d) associated breakers, bus works, switches, etc. 17 5 ~ v^ S i " gar R , 4 • 3. Ben Davis Substation s Facilities included am as follows: (a) 450 MVA, 343/138 KV autottansfoemer (b) 345 KV lines (e) associated breakers, bus work, switches, etc. 4, McCrea Substation Facilities included are as follows: (a) 450 MVA, 345/133 KV autotunsformer (b) 345 KV Imes (e) associated breakers, bus work, switches, etc. Gmavwm 1, Steam Plant Facilities included are as follows: (a) 138 KV line (b) 75 MVA, 138/69 KV autotransformer (e) associated breakers, bus work, switches, eta 2. Diesel Plant Facilities included are as follows: ' (a) 138 KV line (b) 75 MVA, 138/69 KV autotransformer y (e) associated breakers, bus work, switches, etc. rµ LLL I' M r y t I v ' r J / r y , r 1 t ::'I 7:. ~ ~n ti iX I r+ lj I rr r, .t ` I l yrrr : s k r ~ t r u I ~ r 11 „S i SCHEDULE s RATES AND CHARGES (1) RATES FOR POWER AND ENERGY The rates to be charged by the Agency for Power and Energy furnished to the Cities shall consist of a demand charge and energy charge. new charges shall be based on cost of service to the degree that is practical. The costs used in developing cost of service rates shall be based on accoundng entries as outlined In the Federal Power Commissions Uniform System of Accounts. The rates for demand charges shall be established tc recover costs that are related to Debt Service, (including coverage ratios), other ordinarily predictable stable Operating and Maintenance Expenses and such other reasonable fixed costs u these costs relata to plant and transmission eapedtia util red. The demand charges shall be based on the above listed coats in proportion to total KW that the Agency has available. Proper consideration shall be given in the demand charges for such factors or coincident peak demands, diversity factors. load factors. etc. of the Cities. Energy charges shall be bated on fuel costs, operating personnel costs, variable Operating and Maintenance Expenses, postage stamp type transmission losses, station service energy, and other such reasonable variable costs as these costs relate to energy provided to Cities. The rate making methods used to develop these demand and energy charges shall be comisteat with standard utility wholesale rate making procedures. These methods shall to applied so appropriate to the System. It is recognized that these rates shall be developed in a reasonably equivalent manner as similar wholesale power suppliers, State Utility Commission guidelines. and FPC rate regulations as applied to like power systems. f2) RATES FOR SERVICES PRO%101:D TO ALL CITIES Various services shall be provided to all Cities as directed by the Board of Directors and wih be paid for by the Cities at a rate per kiiowmt•hour which shall be established from time to time by the Board of Directors. Each City's share of such charges shall be that portion of the total represented by the ratio of his share of the net energy for load to the total net energy for load of all of the Cities. Billings will be made in advance on estimates of loads and paid evenly throughout the year. i (3) RATES FOR SPECIAL SERVICES PROVIDED TO A SPECIFIC CITY Special services may be provided to a member from time to time at the request of a City. Reimbursement for thus services will be made at cost by the City receiving tha services. s w' r; y. i h kr I, v`r 19 ,t .t 1970L RESOLUTION NO. v" w A RESOLUTION APPROVING BUDGET ADJUSTMENTS FOR FISCAL YEAR 1986-871 AND DECLARING AN EFFECTIVE DATE. i. SECTION 1. The budget adjustments, as indicated on Exhibit At attached hereto and included by reference herein, for the fiscal year 1986-87 are hereby, in all things, approved and ratified. SECTION II. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1987. p RAY STEPHENS MAYOR .4' ATTEST r JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORAS DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY R F, BY: ~ k r , C , t1 , I . L y k p. QL d A Y r i F 1 1 f E31Htltr a GENERAL FUND BUDGET A07USTMENT FISCAL YEAR 1986.87 CURRENT I 'RANSFER MODIFIED ORGANIZATION I FIND BUDGET D AMOUNT BUDGET LEGAL ADMINISTRATION 362,685 173,5851 289,100 MUNICIPAL COURT JUDGE 53,513 1500 53,013 AIRPORT 87,127 16,8531 60,264 f ANIMAL CONTRDL 225,206 12,5851 221,621 i EMERGENCY MANAGEMENT 65,369 (1321 65,23) PN I ADMINISTRATION 2229593 0 2220593 EN61NEERINO 784,751 (1,787) 182,961 INSPECTION 332,538 1546) 331,992 STREET CONSTRUCTION 528,995 110,5981 518,397 STREET LIGHTING 3329215 0 332,215 STREET PATCHING 792,271 117,769) 774.502 SYEEPINSIDRAINAGE 311,707 0 311,707 TRANS ENGINEERING 303,7.9 160424) 2910305 BUILDING OPERATIONS 656,486 1101118) 646,368 OATA FROCESSINS 824,588 148,666) 715,922 GENERAL GOVERNMEN' 538,64b 1181147) 520,099 OF ANALYSIS 75,417 111943) 13,424 PERSONNEL 321,810 13,9431 311,695 ' i`'•,' 00 PAOLESSINB 174,557 0 174,557 ' G r PARNSPADMINISTRATION 213,555 A 149741) 201,144 Y RECREATION 7411555 A 18,015 757,570 MAINTENANCE 185,707 A 138,5271 747,130 I' 19,4481 191,243 L18RARYPADMiNISIRATION 1901742 SUPPORT SERVICES 202,935 120,622) 182,313 B ADULT SERVICES 256,4;4 19,8421 247,152 CRILDREN SERVICES 114,123 12611 113,855 p FINANCUAOMINISTRATION 239,063 1 (63,370) 1750693 P0CHASING 190,040 1 (4191 1910421 CUSTOMER SERVICE 768,734 1 172,624) 6981110 CASHIERING 147,735 1 (6001 147,135 j hr 9COUN11N8 2499340 1 124,243) 215,095 TAX 118,641 1 14,331 130,984 ' 1 ~ 31 x f MUNICIPAL COURT CLERKS 1141065 1 12b,001) 61,084 PLANNlN6 k COMMUNITY DEV 386,157 129,102) 3574055 1 FIRE mDMINISTRAIIDN 222,152 C (210221) 201,531 I ' T FIRE OPERATIONS 303550440 C 35,546 313901986 + q FIRE PREVENTION 142,428 C 114,325) 128,101 r Y f POLICE ADMINISTRATION 1440140 L}11893) 171,217 k CRIMINAL INVEBTI64TIO4 713,078 '3230831 660,445 F 1 POLICE ADMINISTRATIVE 5119244 (48,304) 462,440 PATROL DIVIBION 29661,309 0 29661,389 FINANCE ADN10 RISC 10191,843 0 1,191,843 < FINANCE ACCT NISC 735,600 0 735,600 PLRNMlNB MISC 145,501 0 445,501 . 6ENEN4 FUND 21,644,m 1592,5451 41,052,328 C r V1 V r ~ F 1 DATI/g: 09/04/87 4 r CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd Harrell, City Manager SUBJECT: AIRPORT AGRICUL%URAL LEASE RBCOMMRNDATION: M t, It is the recommendation of the Airport Board to approve the airport lease agreement by and between the City of Denton and Ernest and Lewis Trietech. .}r t 'I ti +P+ ~ SUMMARY: This lease provides for the upkeep of the undeveloped land at the airport and also generates a small revenue. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: This amendment should not affect any other departm,,(t or group. h ; ? FISCAL IMPACT: s There will be no coat to the General Fund. This lease will increase airport revenues by $4,674.80 per year. ; + h` " ;x Reapectf ly submitted: LN ~w +4FiP Prepared by: City pager V ~J P /V Bruce Cardwell '.+j e k Acting Airport Manager , ~ APP ?v!ed, k Svehla x R c : Deputy City Manager 4 1 1'; $ 0759k a P ip 7; Tai , ti_ 1946L 33 RESOLUTION NO. t i A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND ERNEST AND LEWIS } i TRIETSCH FOR PROPERTY LOCATED AT THE CITY OF DENTON MUNICIPAL AIRPORT, DENTON, TEXAS AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton has certain vacant property y i located at the Denton Municipal Airport, Denton, Texasj WHEREAS, the City of Denton desires to lease the property for agricultural purposes to the Trietsches in return for mowing services to be performed at the Airport and the payment of rent in the sum of Four Thousand Six Hundred Seventy-four Dollars and Eighty Cents ($48674.80). WHEREAS, Ernest and Lewis Trietsch desire to lease the land at the airport for agricultural purposes and agree to pay to the city the requested rent and perform the mowing services at the Airport; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: Section I: That the City Manager is hereby authorized to execute a ease agreement between the City of Denton and Ernest ` and Lewis Trietsch a copy of which is attached hereto and incorporated by reference herein. y I Section II: That this resolution shall become effective immediately upon its passage and approval. t Passed and Approved this the day of a" ; ''r a RAY STEPHENS, MAYOR CITY OF DENTON, TEXAS ATTEST: JENNIFER WALTERS, CITY SECRETARY r, CITY OF DENTON# TEXAS x APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTOYNEY BY: x 1942L s THE STATE OF TEXAS S KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON S k ; By this lease, entered into the day of , 3 1987, the City of Denton, Texas, herein called LESSOR devises and lets to Ernest Trietsch and Lewis Trietsch, herein called LESSEES, the right and privilege to use for agricultural purposes and for no other purpose, except as authorized herein, the following real property located in the County of Denton, State of Texas, described as follows: l Approximately 290 acres of land at the Denton Municipal s.. Airport, which is surplus to Airport needs, for f agricultural purposes, as designated in the yellow shaded portions on attached Exhibit At which is incorporated herein, upon the following terms and conditions: 1. The term of this lease shall be from the 15th day of September, 1987 through September 14, 1988. 2. LESSEES agree to deliver possession of said land and premises to LESSOR on September 14, 1988. 3. LESSEES agree to pay LESSOR, as cash rent for the above described property for the one (1) year term the sum of Four Thousand Six Hundred and Seventy four Dollars and Eighty Cents ($4,674.80) in two (2) semi-yearly installments of Two Thousand t Three Hundred and Thirty-Seven Dollars and Forty Cents ($2,337.40) each, the first installment to be paid on or before " September 15, 1987, the second installment to be paid on or before March 11 1988. ia r ~p i . 5{ p 1j ( in addition to such cash payment, LESSEES agree to perform the following services for LESSOR as consideration for the lease of said property, to-wit: i A, How all designated as rshowna ins the blue shaded Municipal Airport, portions on Exhibit At a by ethe' Airports managements or as deemed necessary except the following areas: l. sThe areas around tructures and U Sir Governmental facilitiesronal 2. Areas leased to Airport operators and other leaseholders. 9. Smooth rough land areas that are within the blue and yellow shaded portions on Exhibit A. C. Remove trees and stumps that are within the blue and i yellow shaded portions on Exhibit A. U. pCall to the otential erosion tareas n at of the pleased ppremises Band e the areas that are to be mowed. E. Hack furrow or mow a distance of ten (10) feet from all fences in order to keep grass and other " vegetation from becoming a fire hazard. (See Exhibit A attached.) 46 Land Area Available: Approximately 290 acres of land are available for agricultural usage as follows% A. Approximately 250 acres of usable land on the west side of the Airport. the the east future 9. Approximately ofi the irp32 ort acres This areab runsafrom on hangar area line to the south airport boundary line along the farmer's entrance road. r ~ ' PAGE 2 a a r 4; s i ' t C. Airport Clear Zones: 1. Airport Clear Zones are land areas along the runway that must be clear of crops and be holesaore large urockswin thetarea.smThehdistance requirements for airport clear cones are: a. 250 feet either side of the runway center line. b. 11000 feet to the south of the end of Runway 17. c. 1,000 feet to the north of the end of Runway 35. 2. Areas along the taxiway must be clear and unobstructed for a distance of 75 feet from the center of the taxiway. 3. The infield area, between the runway and taxiway system, cannot be utilized for agricultural purposes. This area must be maintained at all times and the grass not allowed to grow over six inches in depth. 4. Crops grown at the leased premises are restricted by the following conditions: r a. Tall standing crops, over three feet in height, may not be grown within 250 feet of the runway on the west side of the Airport. f b. Crops may not be grown between the runway and the taxiway system. " c. crops may not be grown next to or in the r4 vicinity of any PAA navigational unit or r, ' structure. 5. Restrictions and Limitations: A. The land leased should be used solely for cultivation of seasonal crops or for the mowing of natural grass or hay. All cultivation and mowing shall be conducted in conformity with good soil conservation and pasture management practices. PAGE 3 S B. At no time will LESSEES or any individual be allowed 4 to park or leave unattended any farm equipment, tractor or vehicle within 400 feet of the center line of the runway) within any runway approach area r that is 500 feet from the threshold; or within 50 feet of the edge of any taxiway or apron. C. At no time will the LESSEES or any individual be allowed to erect, construct or build any structure I of any nature, or remove or tear down any building i or other improvement on the leased property without prior written approval of the LESSOR. ' D. No new fences may be erected on the Airport property j without prior written approval of the LESSOR. All Airport boundary fence lines will be maintained by Airport maintenance personnel. E. Grazing or pasturing of animals will not be permitted on the Airport property or on any Airport land leased for agricultural purposes. F. There can be no leasing or subleasing of any portion of the Airport property or on any Airport land leased for agricultural purposes. 6. The following special conditions shall govern the parties to this lease: A. It should be understood that LESSOR and the Federal Government shall have the right to use any portion ' of the land for any purpose that they deem j necessary. The LESSOR will require that the areas I in question be vacated within 30 days of a written notification. Compensation for the recaptured land a will be prorated on a per acre basis, plus costa of growing crops destroyed. B. Land designated as 'Future Hangar Areas' may be used r for cultivation. However, it is expressly understood that no compensation to the LESSEE will be made by LESSOR for land or crops recaptured in % these areas during the term of this agreement. The LESSOR will require that these Future Hangar Areas comprising of approximately 40 acres shall be vacated within thirty (30) days of a written notification. j PAGE 4 r w C. The LESSOR will have access to the property leased at any time for the purpose of any inspection deemed expedient and for the purpcse of surveying, utility placement, as well as for the use as access routes to adjacent areas of the Airport or to public roads. D. Material crops and all other property of the LESSEES shall be removed from the Airport leased land by the expiration date of this lease. E. LESSEES agree to indemnify, defend and hold harmless the LESSOR and its agents, employees And represen- tatives from all penalties arising from the l violation of any ordinance, order or regulation that should occur in the operation of the lease, as well as from and against any and all liability for all claims, suite, losses, damages or injuries to any person or property of any nature resulting from the carelessness, negligence or improper conduct of the LESSEES or any of his agents or employees. F. LESSEES will not bring claim or suit against the LESSOR or assign any cause of action because of an accident, fire, noise or disturbance resulting from the crash of an aircraft operating in the vicinity of the Airportl taking off or landing at the Airport; or occasioned by the presence and proximity of aircraft parked, being fueled, taxiing or in-flight over the leased area. G. LESSEES expressly agree to deliver portions of such ti property to the LESSOR as LESSEES' crops are removed. Any crops remaining on the leased premises r on September 14, 198B, shall become the property of :4 n Ak LESSOR. r H. Further, LESSOR assumes no responsibility or liability for harm, injury, or any damaging events r which are directly or indirectly attributable to premise defects or conditions which may now exist or may hereafter arise upon the premises, any and all pf defects being expressly waived by LESSEES. Executed in duplicate this the day of September, iS87. i• CITY OF DENTON, TEAS, LESSOR f 11 SY: _ CITY MANAGER PAGE 5 4 ATTEST: d ' CITY OF DENTON# TEXAS ay APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCHP CITY ATTORNEY CITY OF DENTON, TEXAS ell 9 + BY: ~~i /cf[C.~Ti~GI 1 t y E NES RISTSCHr LESSEE { 4W.S CT LESSEE .1 'f t o 4 y A y✓L u '',i! s r, r .x rJ ~ ~ M'1 e y1 j ` r 7 v ~ r u r'r , Tµ I ' Vl I 1 rlr +yJ a,~J ~ y~•y ~ e 3 r= E444E ~ rig` t .i c w`` 1 ,r ' 4r L V' r 1 "~l j..l 1 1 15 YV1+ V" ` g~'x 7 rr PAGE 6 :r t it r.yst ry }1 d, i. 9 .I I Z ' 1 r 1 I II YIC.a t1 Ya! ~•xa~ I, , • ~ I ~1 y t• MY.I M1M Pw11 i i 1 i YZ'• maw Mwr ~ f r41 ..,H • • I MMIC Pr.1a I 00 YMVrNN /•p MM M N ~•'MP I I r M. MNMaa ~ ! 441 I , ur M a / ' f ,I M i I 1 ' ..I I ~ ~1 rl W1r1 W ~ • ~IMr sUr ~ % I ~ YrHM M~r MN •M HI ~.IIMhI NWAI w14•♦ 11•rl R Ay..l Olrv.fi. _ rs Mrl rrrlll. AI-p.l L..1 a . N 1 ~r~~ra ~1~31r ~jCLY. ~J CITT OR DCIITON.TV ' • 1 - kNrO YYMRI/L APPOI rrM MMt U•awl ~ an w 1411 M•rl r • ara + AIr"T LAYOUT P I ul M.. U .w H rH .JYli41 { MINUTES { AIRPORT ADVISORY BOARD August 11, 1987 P REGULAR MEETING OF THE CITY OF DENTON AIRPORT ADVISORY BOARD, TUESDAY, AUGUST 11, 1987, AT 5:30 p.m., IN THE TERMINAL BUILDING OF THE MUNICIPAL AIRPORT. i MEMBERS PRESENT: Arno, Ferrara, Smith, Williams, Woolfolk, and Wright MEMBERS ABSENT: Carrell OTHERS PRESENT: Frank Hayward; Lee Keith; Ron Bowling, Airport Manager: Bruce Cardwell, Airport Assistant; and Fernando Torres, Radio Operator 1. The Board considered the minutes of the regular meeting of July 14, 1987. Spelling errors were pointed out and corrected. The following was added to item number two proceeding the motion: Rick Svehla stated that he would assist Mr. Brown with his request. A motion was made and seconded to approve the minutes as amended. The motion passed unanimously. 2. The Board considered the Airport Manager's report. The Airport Manager informed the Board of his resignation and F that of the Airport Assistant. The Manager presented his proposal to change the organization of the airport. The Board was updated on industrial development possibilities, comautee airline service, T.A.C. letter concerning funding, and the results of the safety inspection by the F.A.A. The Board was also informed that a tractor was purchased by 7 the City and would be delivered soon; however, in the budget hearings for next year, funds for a part-time maintenance person to operate the tractor had been cut from a the Airport budget. The Manager also reviewed a letter from Legal addressing the extension of the agricultural lease for one year. A motion was made and seconded to recommend to City Council the extension of the agricultural lease for one year. The motion passed unanimously. 3. The Board considered the sub-lease of a portion of the { Brown lease to Financial Services. The Board was informed by the Airport Manager that the city Attorney's Office had raised some legal issueR that would not allow for the Brown's request for a sub-lease. The Brown's attorney also Airport Advisory Board Minutes August 11, 1987 Page 2 had some questions about the proper way to proceed with this issue. The Airport Manager informed the Board that he had suggested to the attorneys that a separate lease be granted to Financial services to resolve the legalities. This proposal was acceptable to the attorneys. A motion was made to recommend to the City Council that the City j grant Financial services a separate lease. It was pointed out that such a lease had not been drafted and that the Brown brothers had not been able to attend the meeting i because both were out of town. A new motion was made and seconded stating that the Board agrees in concept to recommending to City Council that the City grant a ieaso to Financial Services contingent on a financial review and delete this portion from the Brown lease. The motion passed unanimously. 4. The Board considered the proposal presented by the Airport Manager to reorganize the Airport staff. The Board considered the principals of reorganization. Workload and safety issues were discussed. The Board considered the financial issues of the proposal. The Airport Manager's salary was discussed. A motion was made and seconded to i recommend to City Council the replacement of the Airport Assistant position Witt, a newly created part-time maintenance position and a full-time clerk position. ` The Board requested that the Airport Manager's salary and reorganization of thA Airport staff be placed on the agenda of the next meeting so that the Board could discuss it with city staff. The next meeting was scheduled for Tuesday, August 25, 1987, at 5:30 p.m. S. The Board considered the resignations of the Airport Manager and Airport Assistant. The Board expressed to the ' Airport staff their appreciation for a job well done. A motion was made and seconded to recommend to the City to ask Bruce Cardwell to stay as acting Airport Manager for the interim at the present salary of the Airport Manager. The motion passed unanimously. 6. The Board considered the achievements of the outgoing members of the Board. The Board expressed their appreciation for the work done by Frank Hayward and Lee Keith during their terms in office. 7. The Board considered election of new officers. Elections were tabled until all members could be present. With no further business, the Board adjourned at 7:15 p.m. Osseo r t i i I I i ; i W rYol DENTONr TEXAS MUNICIPAL BUILDING/ DENTON, TEXAS 78201 /TELEPHONE (817)888.8307 Office of the City Manager MEMORANDUM i TO: Lloyd V. Harrell, City Manager FROM: Rick Svehla, Deputy City Manager 4. DATE: September 10, 1987 `I SUBJECT: Amendments to Lease for Brown and Brown and New Lease for First Financial, Inc., at the Airport a ? Recently, the Brown brothers :sere approached by First Financial Services. They were interested in leasing a hangar from them. a, r~ The Browns wanted to sublease the hangar to First Financial for a long period of time. Because of the way our leases are written, there was not sufficient language in them to allow any guarantee of the long lease for First Financial if Brown and Brown got Into financial difficulties. The staff therefore recommended that the leases be rewritten to allow First ai Financial to lease directly from the City. We have done that and the Airport Board has recommended that the same conditions ' and fees be included in both leases and that the terms of both :y<t leases be the same length. These new amendments would allow us to make the same revenue as the original Brown and Brown lease. Since the leases are for F z + the same duration, changes can be made to either lease at the same time they could have been made to the old Brown and Brown lease. The Airport Board recommended this at their August meeting and the petitioners have been working very diligently to revise the documents. They have requested that we move as expeditiously as possible. We would recommend the amendments and the new lease. If you or the Council have any further questions, we will be happy to ry a1,d answAr them. y ! .I y fir. Deputy City Manager s 3610M ,i 3 1963L t RESOLUTION NO. A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND FIRST FINANCIAL RESOURCES, INC., AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton owns property available for lease at the Denton Municipal Airport; and WHEREAS, Financial Resources, Inc., a Texas corporation, desires to lease property at the Denton Municipal Airport and to use the same for hangar construction, hangar rental and related aeronautical purposes; and WHEREAS, the City of Denton desires to lease property upon the Airport for such purposes; and WHEREAS, the Airport Advisory Board has recommended a lease agreement with First Financial Resources, Inc.; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON THAT: SECTION I. The Airport Lease Agreement (Commercial Operator) ' between the City of Denton and First Financial Resources, Inc., attached hereto and incorporated herein by reference, is hereby approved. SECTION II. The Mayor is hereby authorized to execute the attached ease agreement on behalf of the City. SECTION III. This Resolution shall be effecti~fe immediately upon is passage and approval. ,i , PASSED AND APPROVED this the day of 1987. RA1.' STEPHENS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY 1964L ¢ i THE STATF OF TEXAS S COMMERCIAL OPERATOR LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND COUNTY OF DENTON S FIRST FINANCIAL RESOURCES, INC. r day Of This lease is made and executed this the 1987, at Denton, Texas, by and between the C y o Denton, a Municipal Corporation, hereinafter referred to j as "Lessor', and First Financial Resources, Inc., a Teicaa~ i corporationo having its Denton, Texas# hereinafter referred offices ias s 'Leat 611 ssee" Kimberly Drive. WITNESSETH: = WHEREAS, Lessor now owns, controls and operates the Municipal I' Airport (Airport) in the City of Dencon, County of Denton, State of Texas; and ' WHEREAS, Lessee desires to lease certain premises on said ~ airport and construct and maintain an aircraft hangar and related V aviation facilities thereon; and f NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the parties agree as follows: ~ . i`. I. CONDITIONS OF AGREEMENT i, j NOTWITHSTANDING ANY LANGUAGE 'l0 THE CONTRARY HEREi'.IAFTER CON- TAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION ? SHALL BE BINDING. I Zj, Operations A. Principles of The right to conduct aeronautical activities for furnish- MT ing services to the public is granted the Lessee subject to le I Lessee agreeing: 1. To furnish said services on a fair, equal and not unjustly discriminatory basis to all users thereof; and 2. To charge fair, reasonable and not unjustly dis.:rimina- tory prices for each unit or service; provided, that " the lessee may be allowed to make reasonable and non- a;' discriminatory discounts,, rebates, or other similar types of price reductions to volume purchasers. B. Non-Discrimination The Lessee, for himself, his personal representatives, I , successors in interest, and assigns, as a part of the ddt a • .t~ I f r ~i tr ~ I f~I ! i , x ,'ak a y p e l7 f ,4 t r if rY f consideration hereof, does hereby covenant and agree as a covenant running with the land that: 1. No person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities= 2. In the construction of any improvements on, over, or I under such land and the furnishing of services thereon, i no person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discriminations 3. The Lessee, shall use the premises in compliance with all other requirements imposed by or pursuant to Title 490 Code of Federal Regulations, Department of Trans- portation, Subtitle A, office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Prc.grams of the Department of Transportation-Effectual of Title VI of the Civil Rights Act of 19641 and as said Regulations may be amended. C. Right of individuals to Maintain Aircraft It is clearly understood by the Lessee that no right or privilege has been granted which would operatL to prevent any person, firm or corporation operating aircraft on thi airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. D. Non-Exclusive Right ,y . It is understood and agreed that nothing herein contained l shall be construed to grant or authorize the granting of an ks exclusive right within the meaning of section 1349 of Title 43, U.S.C.A. E. Public Areas j 1. Lessor reserves the right to further develop or improve J 1 the landing area of the airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance. 2. Lessor shall be obligated to maintain and keep in ' repair the landing area of the airport and all publicly owned PAGE 2 facilities of the airport, together with the right to direct and j control all activities of Lessee in this regard. 3. During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. 4. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of the Lessor, would limit the usefulness or safety of the airport or constitute a hazard to aircraft or to aircraft navigation. 'i 5. This Lease shall be subordinate to the provisions of ` any existing or future agreement between Lessor and he ited I States or agency thereof, relative to the operation P maintenance of the Airport. II. LEASED PREMISES Lessor, for and in consideration of the covenants and agree- ments herein contained, to be kept by Lessee, does hereby demise and lease unto Lessee, and Lessee does hereby hire and take from Lessor, the following described land situated in Denton County, Texas: A. LAND: A tract of land, being approximately 23,915 square feet or I 0.508 acres, drawn and outlined on Attachment "A' and shown as Tract II, such attachment in^orporated herein by reference. Together with the right of ingress and egress to said pro- pertyl and the right, in r:ommon with others so authorized, of , ` I passage upon the Airporc property generally, subject to reasonable regulations by the City of Dentonj ard such rights shall extend to Lessees employees, passenge s.! invitees. M, the purposes of this Agreement, the term "Premises' shall mean all property located within the metes and bounds described in Attachment 'A" as Tract 11, including leasehold improvements constructed by the Lessee, but not including certain easements or property owned and/or controlled by the Lessors I~ PAGE 3 { " f r: 14 B. IMPROVEMENTS PROVIDED BY LESSOR: NONE: There will be no improvements provided by Lessor, except as set forth in Article II., D, "Access to Utilities' below, For the purpose of this agreement, the term 'Lessor improvements' shall mean those things on the leased premises belonging to, constructed by, or to be constructed by the j Lessor, which enhances or increases, or will enhance or increase, the value or quality of the leased land or property. Unless otherwise noted herein, all Lessor improvements are and will remain the property of the Lessor. All Lessor improvements must be described in detail above, or above refarenced and attached to this agreement in an exhibit approved by the Lessor. C. EASEMENTS Lessor and Lessee by mutual agreement may establish on the leased premises easements for public access on roads and E taxiways. D. ACCESS TO UTILITIES Lessor represents that there are water, and 3-phase elec- tricity lines within three hundred feet (3001) of the leased premises available to 'tap-in' by Lessee, and that the same are sufficient for usual and customary service on the leased premises. III. TERM r The term of this Agreement shall be for a period of twenty- ' three 123) years, commencing on the day of September, 1987, and continuing through the Hay of September, 2010, unless earlier terminated under the provisions of the Agreement. Lessee shall have the first right of refusal to renegotiate this lease for three (3) additional five y,er periods at rentals and terms mutually agreed upon by the Lessor and Lessee without regard for or considering the then cost of living index. Lessee's election to renegotiate this Lease shall be in writing addressed to the City Manager at least one hundred eighty (180) days before the expiration of tha primary term of twenty-three (23) years and at least 180 days before the R' expiration of each additional renegotiated period, The rental s5, and terms to be negotiated shall be reasonable and consistent with the then value, rentals and terms of similar property on the Airport. Lessee's first right of refusal to renegotiate this lease shall expire upon the end of the last day of the 4 primary term of twenty-three (23) years and the last day of each '4 Fc PAGE 4 i additional renegotiated period. i IV. PAYMENTS, RENTALS AND FEES Lessee covenants and agrees to pay to Lessor, as consideration for this lease, the following payments, rentals and 9 fees: A. LAND RENTAL I Land rental shall be the sum of One Thousand Six Hundred Seventy-four Dollars and Five cents ($1,674,05) per year, payable in twelve (12) equal monthly installments in the sum of ' One Hundred Thirty-three Dollars and Fifty Cents ($133.50) in advance, on or before the first day of each and every month dur- ing the term of this agreement. Notwithstanding the foregoing, the lease rental is to be reduced by the product of $0.07565 per square foot times the number of square feet comprising all easements established in accordance with Article II(c). B. LESSOR IMPROVEMENTS RENTALS NONE: There are no Lessor improvements on the leased ` premises. C. PAYMENT, PENALTY, ADJUSTMENTS: All payments due Lessor from Lessee shall be delivered to a, the Airport Manager, unless otherwise designated in writing by the Lessor, Payments which are more than 15 days past due shall be assessed a penalty of one-half (1/2) of one percent per day, r compounded daily, for each day or fraction thereof which the payment or fee is mote than 15 days past due. The yearly rental for land and improvements herein leased shall be readjusted at IIII the end of each five (5) year period during the term of this lease on the basis of the proportion that the then current United „ States Consumer Price Index, All Urban Consumer (CPI-U) for Dallas/Fort Worth, Texas, as compiled by the U.S. Department of Labor, Bureau of Labor Statistics bears to the March, 1985 index which was 335.6 (1967 a 100). The original land rental amount is based upon $0.07565 per square foot for the land herein leased. However, in no event shall any subsequent rental adjustment x exceed fifty percent (50%) of the immediately preceeding established rental. The four (4) rental adjustments, if any, shall occur on the following dates: i September 15, 1990 September 15, 2000 September 15, 1995 September 15, 2005 tPAGE 5 V. RIGHTS AND OBLIGATIONS OF LESSEE A. USE OF LEASED PREMISES Lessee is granted the non-exclusive privilege to engage in or provide the following: 1. Han ar Leases and Rental. The rental or lease of angars an hangar space and related facilities upon i the leased premises. 2. Office S ace Lease or Rental. The rental or lease of office space in or ad oin ng Lessee's hangars. 3. Aircraft Stora a and Tie Dolan. To provide parking, storage and tie own service, for both Lessee's and itinerant aircraft upon or within the leased premises. Lessee, his tenants and sublessees shall not be authorized to conduct any services not specifically listed in this agree- ment. The use of the lease premises of Lessee, his tenants or t' sublessees shall be limited to only those private# commercial, retail or industrial activities having to do with or related to airports and aviation. No person, business or corporation may opperate a commercial, retail or industrial business upon the pre- mises of Lessee or upon the Airport without a lease or license from Lessor authorizing such commercial, retail or industrial ! activity. The Lessor shall not unreasonably withhold auth- orization to conduct aeronautical or related services. B. STANDARDS ' Lessee shall meet or exceed the following standards: I 1. Address. Lessee shall file with the Airport Manager an3-deep current its mailing address, telephone number(s) and contacts where he can be reached in an hh emergency. I 2. List. Lessee shall file with the Airport Manager and keep current a list of its tenants and sublessees. 3. conduct. Lessee shall contractually require its employers and sublessees (and sublessee's invitees) to abide by the terms of this agreement. Lessee shall promptly enforce its cont4actual rights in the event of III a default of such covenants. 4. utilities Taxes and Fees. Lessee shall meet all expenses an paymen s n connection with the use of the Y ~ PAGE 6 premises and the rights and privileges herein granted, including the timely payment of utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed. 5. Laws. Lessee shall comply with all current and future 3 i fe7eral, state and local laws, rules and regulations j which mAy apply to the conduct of business contemplated, I including rules, regulations and ordinances promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits. 6. Maintenance of Property. Lessee shall be responsible for the maintenance, repair and upkeep of all property, buildings, structures and improvements, including the mooring or elimination of grass and other vegetation on the premises, and shall keep said premises neat, clean and in respectable condition, free from any objectionable matter or thing. I 7. Unauthorized use of remises. Lessee may not use any of the leased land or premises for the operation of a motel, hotel, restaurant, private club or bar, r, apartment house, or for industrial, commercial or retail purposes, except as authorized herein. 8. Dwellings. It is expressly understood and agreed that no permanent dwelling or domicile may be built, moved to or established on or within the leased premises not may the lessee, his tenants, invitees, or guests be permitted to reside or remain as a resident on or within the leased premises or other airport premises. 'f 9. Quit Possession. Lessee shall quit possession of all sr• premises. leased herein at the end of the primary term of this lease or any renewal or extension thereof, and deliver up the premises to Lessor in as good condition as existed when possession 4as taken by Lessee, I reasonable wear and tear excepted. 10. Hold Harmless. Lessee shall indemnify and hold harmless the Lessor from and against all loss and damages, including death, personal injury, loss of property or other damages, arising or resulting from the operation of Lessee's business in and upon the 7. leased premises. PAGE 1 1 , R 4 11. Chemicals. 7,essee agrees to properly store, collect and dispose of all chemicals and chemical residues; to ! properly store, confine, collect and dispose of all } paint, including paint spray in the atmosphere, and paint products; and to comply with all Local, State and Federal regulations governing the storage, handling or disposal of such chemicals and paints. f D. SIGNS i During the term of this Agreement, Lessee shall have the right, at its own expense, to place in or on the lease premises signs identifying Lessee. Said signs shall be of a size, shape and design, and at a location or locations, approved by the Lessor and in conformance with any overall directional graphics or sign program established by Lessor on the Airport. Lessor's approval shall not be withheld unreasonably. Said signs shall be maintained in good repair throughout the term of this agreement. Notwithstanding any other provision of this agreement, said signs. shall remain the property of Lessee. Lessee shall remove, at its 4 expense, all lettering, signs and placards so erected .,n the premises at the expiration of the term of this Agreement or extensions thereof. VI. COVENANTS BY LESSOR Lessor hereby agrees as follows; As Peaceful Enjoyment, That on payment of rent, fees, and performance o the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the leased premises and all rights and privileges herein granted; B. Compliance. Lessor warrants and represents that in the establishment, construction and operatio.i of said Denton Municipal Airport, that Lessor has heretofore and at this time is complying with all existing rules, regulations, and criteria distributed by the Federal Aviation Administration, or any other governmental authority relating to and including, but not limited to, noise abatement, air rights and easements over adjoining and f., contiguous areas, over-flight in landing or takeoff, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations over adjoining property in the course of normal tak,a-off and landing procedures from said Denton Municipal Airport; Lessor further warrants and represents that at all times during the term hereof, or any renewal or extension of same, that it will continue to comply with the foregoing. s, PAGE 8 I I , i VII. SPECIAL CONDITIONS r it is expressly understood and agreed by and between Lessor and Lessee that this lease agreement is subject to the following special terms and conditions: A. Runways and Taxiways. That because of the present sixty thousan , pounc continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee herein agrees to limit all aeronautical activity including landing, take-off and taxiing, to aircraft having an actual weight, including the we+.ght of its fuel, of sixty thousand (69,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of such excessive weights, It is further agreed that, based on qualified engineering studies, the weight restrictions and provisions of this clause may be adjusted, up or down, and that the Lessee agrees to abide by any such changes or revisions as such studies may dictate. 'Aeronautical Activity' referred to in this clause shall include that activity of the Lessee or its agents or subcontractors, and its customers and invitees, but shall not include those activities over which it has no solicitory part or i, control, such as an unsolicited or unscheduled or emergency landing. A pattern of negligent disregard of the provisions of this section shall be sufficient to cause the immediate termination of this entire Agreement and subject the Lessee to be ° liable for any damages to the Airport that might result. B. OWNERSHIP OF IMPROVEMENTS: All buildings and improvements constructed upon the premises by Lessee shall remain the property of Lessee unlese said property becomes the property of Lessor under the following conditions, terms and provisions: r~ : I 1. Removal of Bui_1_dings. No building or permanent fixture may 55--removed the premises. y, 2. Assum tion. All buildings and improvements of whatever na ure remaining upon the leased premises at the end of the primary term, or any extension thereof, of this lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor. 3. Building Life. It is agreed that the life of the bb-ding to be constructed by Lessee on the property herein leased is twenty-three (23) years. 4, Cancellation. Should this lease be cancelled for any reason before the end of the twenty-three (23) year j , PAGE 9 ~ term, it is especially understood and agreed that Lessor reserves the right to purchase all buildings, structures and improvements then existing upon the premises by tendering to Lessee one-twenty-third (1/23) of the undepreciated value of such building for each year remaining on the agreed life of such building. The undepreciated value of all improvements is to be determined by having such improvements appraised by three appraisers, one appointed by Lessor, one appointed by Lessee and one appointed by the two appraisers. i VIII. SUBROGATION OF MORTGAGEE Any person, corporation or institution that lends money to Lessee for construction of any hangar, structure, building or improvement and retains a security interest in said hangar, structure, building or improvement shall, upon default of Lessee' obligatir.as to said mortgagee, have the right to enter upon said leased premises and operate or manage said hangar, structure, building or improvement according to the terms of this Agreement, for a period not to exceed the term of the mortgage with Lessee, i or until the loan is paid in full, whichever comes first, but in no event longer than the term of this lease. It is expressly understood and agreed that the right of the mortgagee referred to herein is limited and restricted to those improvements constructed with funds borrowed from mortgagee. IX. RIGHT OF EASEMENT Lessor shall have the right to establish easements, at no cost to Lessee, upon the leased ground space for the purpose of providing underground utiMty services to, from or across the airport property or for the construction of public facilities on the Airport. However, any such easements shall not interfere with Lessee's use of the leased premises and Lessor shall restore the property to its original condition upon the installation of any utility services on, in, over or under any such easement or the conclusion of such construction. Construction in or at the easement shall be completed within a reasonable time. c X. ASSIGNMENT OF LEASE ' Lessee expressly covenants that it will not assign this lease, convey more than ten percent (101) of the interest in its business, through the sale of stock or otherwise, transfer, license, nor sublet the whole or any part of the said premises for any purpose, except for rental of hangar space or tie-down space, without the written consent of Lessor. Lessor agrees that it will not unreasonably withhold its approval of such sale, PAGE 10 j sublease, transfer, license, or assignment of the facilities for airport related purposes! provided however, that no such assignment, sublease, transfer, license, sale or otherwise shall be approved if the rental, fees or payments, received or charged are in excess of the rental or fees paid by Lessee to Lessor } under the terms of this lease, for such portion of the premises proposed to be assigned, subleased, transferred, licensed, or otherwise. The provisions of this lease shall remain binding upon the assignees, if any, of Lessee. XI. INSURANCE A. Re aired Insurance. Lessee shall maintain continuously in effect at all times uring the term of this agreement, at Lessee's expense, the following insurance coverages: 1. Comprehensive General Liability covering the leased premises, the Lessee or its company, its personnel and its operations on the airport. 2. Aircraft Liability to cover all flight operations of lessee. s 3. Fire and extended coverage for replacement value for all facilities used by the Lessee either as a part of this agreement or erected by the Lessee subsequent to this agreement. 4. Liability insurance limits shall be in the following minimum amounts: Bodily Injury and Property Damage: $1,0000000 combined single liYnits on a per occurrence basis. 5. All policies shall name the City of Denton as an addi- tional named insured and provide for a minimum of r, T, thirty (30) days written notice to the city prior to r' t the effective date of any cancellation or lapse of such policies. b. All, policies must be approved by the Lessor. 4 7. The Lessor shall be provided with a copy of all such policies. ' B. During the original or extended term of this Lease, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any J Y PAGE 11 I I additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessors provided however, that any require- ments shall be commensurate with insurance requirements at other public use airports similar to the Denton Municipal Airport, in size and in scope of aviation activities, located in the southwestern region of the United States. j Lessee herein agrees to comply with all increased or adjusted insurance requirements that may be required by the Lessor through- out the original or extended term of this lease, including types of insurance and monetary amounts or limits of insurance, and to comply with said insurance requirements within sixty (60) days following receipt of a notice in writing from Lessor stating the increased or adjusted insurance requirements. Lessee shall have the right to maintain in force both types of insurance and amounts of insurance which exceed Lessor's minimum insurance requirements. In the event that State Law should be amended to require ` types of insurance and/or insurance amounts. which exceed those of like or similar public use airports in the southwestern region of the United States of America, then in such event, Lessor shall have the right to require that Lessee maintain in force types of insurance and/or amount of insurance as specified by State Law. Failure of Lessee to comply with the minimum specified amounts or types of insurance as required by Lessor shall constitute Lessee's default of this lease. r XII. CANCELLATION BY LESSOR In the event that Lessee shall file a voluntary petition in bankruptcy or proceedings in bankru t-y shall be instituted against it and Lessee thereafter is adjudicated bankrupt pursuant to such - proceedings, or any sour, shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall be divested of its estate herein by other operation of lawj or j Lessee shall fail to perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to correct such condition or cure such default and, if any condition or default shall continue for thirty (30) days after the receipt of such notice by Lessee, then Lessor may, terminate this lease by a written notice to Lessee. In the event of default, Lessor has " the right to purchase any or all structures on the leased premises under the provisions of Paragraph B, 4. Cancellation of Section VII. i PAGE 12 I XIII. CANCELLATION BY LESSEE I Lessee may cancel this Agreement, in whole or part, and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the following events: (1) issuance by any court of competent jurisdiction of a permanent injunction in any way preventing or restraining the use of said airport or any part thereof for airport purposesr (2) the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy r•uch breach for a ~ Period of ninety (90) days ° after receipt of a written notice of the existence of such breach; (3) the inability of Lessee to use said premises and facilities continuing for A longer period than ninety (gn) days due to any law or any orders Y Y , rule or regulation of an appropriate governmental authority having jurisdiction over the operations of Lessor or due to war, earthquake or other casualty; or (4) the assumption or recapture by the United States Government or any authorized agency thereof tae maintenance and operation of said airport and facilities or any substantial part a or pacts thereof. Upon the happening of any of the four events listed in the preceding paragraph, such that the lensed premises cannot be used ° for aviation purposes, then Lessee may cancel this lease as aforesaid, or may elect to continue this lease under its terms except however that the use of the. leased premises shall not be limited to aviation purposes, their use being only limited by such laws and ordinances as may be applicable at that time. . 4" XIV. RISCELLANEOUS PROvrSIONS A. Entire Agreement. r This Agreement constitutes the entire understanding between the parties and as of its effective date supersedes all prior or ! independent agreements between the parties covering the subject { matter hereof. Any charge or modification hereof shall he in writing signed by both parties. B. Binding Effect. All the covenants, stipulations and agreements herein shall extend to, bind and inure to the henefit of the legal rapreP-4a. - tatives, successors and assigns of the r:spective parties hereto, C. severability. E , If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, i PAGE 13 S the entire Agreement shall not br void, but the remaining provisions shall continue in effect as neirly as possible in accordance with the original intent of the parties. j D. Notice. Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid as follows: 1. If to Lessorr addressed to: City Manager City of Denton Denton, Texas 76201 r " 2. If to Lesseer addressed t,)! ° First Financial Resources, Inc. 611 Kimberly Drivi Dentone Texas 76202-0271 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. E. Headings. The headings used in this Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement. r z F. Governing Law. This Agreement is to be construed in accordance with the laws of the State of Texas. ifl WITNESS WHEREOP, the parties have executed this Agreement as of the day and year first above written, CITY OF DENTON, TEXASr LESSOR BY: RhY STEP NS, MAYOR Y .Yi I,". It - df M Y Ax ..sl Yr a1,? PAGE 14 111 t 4 ill i Y 1 ATTESTI JENNIFER WALTERS- CITY SRC' `ARY APPROVED AS TO LEGAL FORM DEBRA ADAHI DrAYOVITCH, CITY ATTORNEY BY: FIRST FINANCIAL RESOURCES, INC., LESSEE i' n THE STATE OF TEXAS S y " COUNTY OF DENTON S On this day of 1987, before me the undersigned Notary Public, ersona y appeared W/ L. Z; , personally known to me (or p ovedr to 41 on e as s o eat a actory evidence) to be ~the person who executed J 0a;'h' y of First the within instrument as r~ 1' . Off Financial Resources, Inc., -on-behalf r the corporation therein named and acknowledged to me that the corporation executed it. WITNESS my hand and official seal. jj 4 a y CARLA K HAAf ' NOTARY PUBLIC -STATE Of TE%A` NOTARY PUBLIC, STATE OF TEXAS MY COMMISMON EMAES 411VIA n PAGE 15 1 •.U. ww Hill all l1µ ef1111% let, Ilefl of aged lane 11teftN is the T. Take /went, AbsNieS 09141 1111, «lun Cwnte, leaa7, Will all that fettala 1.111 aaer pr ell of lam devils 11 ",,a 1afeerrnl Waite Bills 1bfIran, t /arlntrahlr, ae/ I,1108 fltpll, NI loaalllai ,f~ 11 ti,1414 N to 1114144 61 a,datl i. 44101, O.F.I. le. ale All cNN. IN II a,reel a1 I{i11M IN1e1 Nft rail leelatl r► tAS} lIJ1r te6cr 1 I. t.u1 lffal locim11/ at as IrM fN Solid lie 40t00f, 4414 ►40Olll Inn u.e ao.raµet MINI at UN If H• I of Ma L6.6a Tl,.y ttllKI Visit, Ill.el loot to ef Itss 164 INN (el doe Mll a1 *Y t1i' M t"Wit Hotta. 711.11 (Oft to in Ira tell Could IN fetaNl CO." TrtIK{ Sage, 117.71 I- at to as IIN IN I41 1•f e4ta•1, rimCl fall, 111.11 left it N 101 Out II foRmt► tic ~ I Ymeofl yy ♦e 7111[/ east, I11.11 riet to all Item lIl 441 {H Wheel 1 ~A ar,'~.,'..'~,',' T is ri1YCf / 1/'W111 9, 111.11 loot to the 71ACI Of 1i51~•'aiY, IIOtw116 aN tNIdnIM 1.111 acres of IIM. TRACT 0 1 1N Acia -1Aneelr Oat • 1701" aa611N110 al ef Ile eN lbld fef eutnet, $014 c(~alel Aa u Iw1al &No aarlaaUl Orfat fl 6114 IfNe / /tM Ca so, 8 it++ itKQM11,K 7„ttl NO*t 4" f✓ _I `'r' Tows 1 3t•14,44• t, 144.17 tat to as igw la ul t•( , - ` a`l "coca Wait, 111.11 loot 1t all 41 fat I. Nat.. la tae S nrnerr Tall[/ I•f 11, I41.1P sal to as if" felt ere for age latK1 Iut, 11 1.64 tae is tM rtAC1 b IMI4IIM Ile .I• 10'"2411110 1381 14444 of sell, IPAJ 1 ' R5 ' rj1W \ x tlfrrll4..t ~ tiwrt~[iiii ~ 1 tip: s' tt g W GMrar~`fi 1K: ON, fel 4,130 MMIT/~'/[!oust Wte 1p M//Ip/N AN%01 1I11t1 "BU AMOCO. /USCAAI ` ' pri!!r w/ N Mkt Illi, 117 fhas 44 1N thle-OkIll IBWq Iy1 46 fW u r tk* field "too 3 ty fl , //RSl f/NANGYAL RESCG!'/RC£S /NC..oNv I.11ry sou Jf team. INSMI, 1N ta M W /l1 BROWN F NOW A MRTi~MIP W u«I N IN 41I1f►t trlt►ny W the 1111, Seek I I1f 1/ M► i e 1 "tree MINIe it up Yr, /n4 N 1. t{. SV11~EY rl.l1T A.1...rw /lfl«Ily N.JI &be tl« N Its f'1,'' P'RTY CEA." `^p~n ut M 1U/ lwal ,14 ►1~Y IM rs.I~1•N" +*4V 4s1i+ N 611 df . (MA J11 -6 N,►/Nt tG~'NION AIR W 2m rVtflffJ w To TRACTS ty THE a tf La N IJ M 1f MINI I W► lMYr1611. ~~r..,. * TOt~By SURVEY, T t1 1tfA~ . Il IWilff, MMW 4r MI a««I, o Is Frl'tYJ 1. SY, ABSTRACT k ILOii . t N told "read,; Wff 614 y N/1PNIIII asN the OWN cum, tm ly IT~M►ISsls 44 M7M«I 1f.N fey, tletf ale ft M 1 4f 71 Nfadl, it li Seri y 64 1► W u►111i We~I W tMlf It@ M to of !OT W. NICKORY lillitT f DENTDW, TINA! TIM 6SURS, INC. 34:•4014 aMFeT>AAIIR~Y.1" _ .....yawn Y. Y .I MINUTES AIRPORT ADVISORY BOARD i E i August 25, 1987 SPECIAL MEETING OF THE CITY OF DENTON AIRPORT ADVISORY BOARD, l TUESDAY, AUGUST 25, 1987 AT 5:30 P.M., IN THE TERMINAL BUILDING OF THE MUNICIPAL AIRPORT. ! MEMBERS PRESENT: Arno, Carrell, Ferrara, Smith, Williams, j Woolfolk MEMBERF ABSENT: Wright OTHERS PP.ESENT: Otho Henderson, President of Maverick Aircraft; the Maverick Aircraft Staff; Charles and Bruce Brown; Frank Strickler of Fox-51; Rick Svehla, Deputy city manager; Diane Callander, Assistant City Attorney; Bruce Cardwell, Acting Airport Manager; Fernando Torres, Radio Operator. 1. The Board considered the Minutes of the regular meeting of August 11, 1987. A motion was made and seconded to ap- prove the minutes ae written. The motion passed ' unanimously. 2. The Board considered the presentation by Otho Henderson concerning Maverick Aircraft. Mr. Henderson presented a list of grievances concerning the present contested lease. The issues of taxes, maintenance of City hangars, certifi- cate of occupancy, Ayla Schbley complaints about maintenance of aircraft, and a letter from the F.A.A. in response to j the review of the Aeroemith lease were all presented. Mr. Henderson praised his staff for their hard work. Mr. Henderson stated he wanted to go on record that he recommended to the City Council that the present Board be disbanded and a new Board be appointed. j 3. The Board considered the presentation by Bruce and Charles Brown concerning First Financial Resources. Bruce Brown updated the Board on the meeting held with City Staff. The m.; Board discussed the term length and escalator clauses in the Brown lease and the current Airport lease. A motion was made and seconded recommending that the City Council accept a lease with First Financial Resources containing the same terms and conditions as the Brown lease contingent on approval of the lease document by City Staff. The motion passed unanimously. . ?t; .Y 1+. It Y . R~~ Airport Advisory Board Minutes August 25, 1987 Page 2 i f 4. The Board considered the presentation by Frank Strickler of r Fox-51. Mr. Strickler asked for some consideration con- i. cerning the property he has leased. Development has not taken place like he had expected and so the lease for the property was becoming a financial burden. The Board asked for a written proposal so that it could be an item on the agenda of the next meeting scheduled for September 8, 1987. 5. The Hoard consWtired the Airport reorganization and budget. The Acting Chairman of the Board, Dr. Dori Smith, updated the Board on the meeting between he and the Mayor and City Manager concerning the Airport staff reorganization and budget concerns. 6. The Board considered any new business. The Board asked if the list of tenants had been updated. It had not been. The Board asked if insurance policies required in the land leases were being checked. Risk management would be con- sulted. There was a question concerning the money owed the City by Mr. Bennett. This was reported as resolved. The Board discussed Airport security. A motion was made and seconded to recommend to the City Legal Staff to draw up an amendment to the trespassing code so that owners of private property, if they wish, can put up signs so that local authorities can help in keeping unwanted people off the property. The motion passed unanimously. The Board discussed the possibility of airshows and C.A.F. participatian. The Board met in executive session at 6:55 p.m. and reconvened in open session at 7:15 p.m. 7. The Board discussed tha selection of the Airport Manager. They asked for the requirements the City had for the position. They also asked for the reinstatement of the monthly financial report. With no further business, the Board adjourned at 7:25 p.m. i 0745k 'ieoSL / I i I 1 1 j RESOLUTION NO. f~ A RESOLUTION AUTHORIZING AN AMENDMENT TO THE AIRPORT LEASE R RODGERS ANDW APPROVINGI THE FASSIGNMENT DENTON NDOF JAY D. IN BROWN; INAND TERESTBRUCE SAID LEASE TO CHARLES V. BROWV: AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, certain real property upon the Denton Municipal Airport was leased to Jay D. Rodgers and Bruce Brown, a Texas partnership, by lease agreement dated April 2, 19851 and WHEREAS, the City of Denton and the Lessees desire to amend the lease agreement) and WHEREAS, the Airport Advisory Board for the City of Denton has recommended approval of ti,e proposed airport lease amend- mentl and WHEREAS, the City Council of the City of Denton, Texas, uelieves it to be in the interest of efficient airport operations b to approve such lease amendment; NOW, THEREFORE, i BE IT RESOLVED BY THE Comm OF THE CITY OF DENTON: SECTION I. The attached amendment to the airport lease agreement between the City of Denton and Jay D. Rodgers and Bruce Brown dated April 2, 1985 and also attached hereto, is hereby approved. SECTION II. The Mayor is hereby authorized to execute the attached lease amendment on behalf of the City and the City Secretary is hereby directed to affix this resolution, with the executed lease amend- ment attached, to the original airport lease agreement dated April 2, 1985, inscribing on the original agreement the fact it has been amended and the effective date of such amendment, r SECTION 122. The assignment of the interest of Jay Rodgers in said lease- hold to Charles V, Brown is hereby approved. f . g 5 1 Ty} r k f k SECTION IV. That this resolution shall become effective immediately upon its passage and approval. 1 PASSED AND APPROVED this the day of 1987. r; RAY STEPHENS, MAYOR i ATTEST: JENNIFER ALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORMS DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY, ~V P + 7 n, f' ! F LI ~ +1 e ,r a, 1971L THE STATE OF TEXAS S AMENDMENT NO, 1 TO AIRPORT LEASE COUNTY OF DENTON S AGREEMENT BETWEEN THE CITY OF DENTON AND JAY D. RODGERS AND BRUCE BROWN WHEREAS, certain real property upon the Denton Municipal Airport was leased to Jay D, Rodgers and Bruce Brown, a Cexas I partnership, by lease agreement dated April 2, 19851 and WHEREAS, the City of Denton and the Lessees desire to amend tho lease agreement by designating new boundary lines for the premises: WHEREAS, the City of Denton and the Lessees desire to amend the lease agreement to remove J. D, Rodgers as Lessee and substitute Charles V. Brown as a Lessees NOW, THEREFORE, WITNESSETH: The City of Denton, Texas, hereinafter referred to as , ' 'Lessor' and Bruce Brown and Charles V. Brown, hereinafter referred to as 'Lessee' for and in consideration of the rents, fi covenants and condieions contained herein, do hereby mutually agree that the lease dated April 2, 1985, between the City of Denton and Jay D. Rodgers and Bruce Brown is amended as follows: 1. Section VIII, PARAGEAPH A, LEASEHOLD IMPROVEMENTS is deleted in its entirety. 2. Section I, Paragraph B, CONDITIONS OF AGREEMENTS Section IV, Paragraphs A and C, PAYMENTS RENTALS AND FEESS Section XII, MISCELLANEOUS,PROVNSIONSCare amended to read as followsagraph D, i 1. Paragraph B, NON-DISCRIM INATION, of SECTION I, CONDITIONS OF AGREEMENT, is hereby amen de to rea as follows: d _d at Non -Discrimination: The Lessee, for himself, his persona representatives, successors and interests, and i assigns, as a part of the consideration hereof, does J hereby covenant and agree as a covenant running with the land that: 1. No person on the grounds of race, religion, color sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of i said facilities: sy ! 2. In the construction o.7 any improvements on, over, or under such land and the furnishings of services thereon, no person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or E otherwise be subjected to discriminations 1 3. The Lessee, shall use the i premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle At Office of the Secretary, Part 210 Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectual of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 2. Paragraph A, LAND, of Section II, LEASED PREMISES, is amended to read as folTowa: A. LAND: A tract of land, being approximately 71,745 square feet, or 1,688 acres, drawn and outlined on Attachment "A" and described as Tract I, such attachment is incorporated herein by reference. Together with the right of ingress and egress to said propertyl and the right in common with others so authorized of passage upon the Airport property generally, subject to reasonable regulations by the City of Denton and such rights shall extend to Lessee's employees, passengers, patrons and invitees, For % purposes of this agreement, the term "Premises" shall mean all property located within the metes and bounds described in Attachment "A" as shown as Tract It Including leasehold improvements constructed by the Lessee, but not including certain easements or property owned and/or controlled by the Lessor. Lessee further agrees and grants to the property immediately adjacent to the northeast boundary of its premises the right of I Ingress and egress across the cor.orete taxiway as shown on attachment A. 3. Paragraph At LAND RENTAL, of Section IV, PAYMENTS, RENTALS AND FEES, is amended to read as follows: i ' A. LAND RENTAL shall be due and payable in the sum of Five Thousand TTwenty-Two and 15/100 Dollars ($5,022.15) per year, payable in twelve (12) equal monthly installments in the sum of Four Hundred Eighteen and 52/100 Dollars ($418.52) in advance, on or before the first day of j each and every month during the term of this agreement f from the date of this amendment. PACE 2 Notwithstanding the foregoing, the lease rental is to be reduced by the product of $0.06830 per Square foot times the number of square feet comprising all easements established in accordance with Article II(c). 4. Paragraph Cl PAYMENT PENALTY ADJUSTMENTS, of Section IV, PAYMENTS, RENTALS, AND FEES a amen a to read as follows: C. All payments due Lessor from Lessee shall be delivered to the Airport Manager, unless otherwise designated in writing by the Lessor. Payments which are more than 15 k days past due shall be assessed the penalty of one-half (1/2) of It per day, compounded daily, per each ray or a fraction thereof which the payment or fee '.a more thal 15 days past due, The yearly rental for land and improvements herein leased shall be _eadjusted at the end of each five (5) year period during the term of this lease on the basis of the proportion that the then current United States Consumer Price Index, all urban 0 consumer (CPI-U) for Dallas/Fort Worth, Texas, as j compiled by the U.S. Department of Labor, Bureau of i Labor Statistics beara to the March, 1985 index which was 335,6 11967 a len). The original land rental amount is based upon ~J.06830 per square foot for the land herein leased, However, in no event shall a subsequent rental adjustment exceed fifty percent (50%) of the immediately preceding established rental. The four (4) rental adjustments, if any, shall occur on the following dates: May 1, 1990, May 1, 19950 May 1, !!!I 2000, May 1, 2005. 1 5, Paragraph At RE UIRED INSURANCE, of Section XIi, INSURANCE }Ik is amended to read as o owe: A. RE UI_ q RED INSURANCE: Lessee shall maintain continuously 11 nn a ect at all times during the term of this r agreement, at Lessee's expense, the following insurance 3 coverages: 1. Comprehensive general liability covering the leased 1 premises, the Lessee or its company, its personnel, and its operations on the airport. 2. Aircraft liability to cover all flight operations of Lessee. 3. Fire and extended coverage for replacement value for all facilities used by the Lessee either as a part of this agreement or erected by the Lessee subsequent to this agreement, PAGE 3 i 4. Liability insurance limits shall be in the following minimum amounts; Bodily Injury and Property Damage; 3 One Million Dollars ($1000,000) combined single j limits on a per occurrence basis. i 5. All policies shall name the City of Denton as an { additional named insured and provide for a minimum 3 of thirty (30) days written notice to the City prior to the effective date of any cancellaLiva or lapse of such policy. 6. All policies must be approved by the Lessor. 7. The Lessor shall be provided with a copy of all such { policies. j[ During the original or extended term of this lease, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lesson provided however, that any requirements shall be commensurate with insurance requirements at other public use airports similar to the Denton Municipal Airport, in size and in scope of aviation activities, located in the southwestern region of the United States. Lessee herein agrees to comply with all increased or adjusted insurance requirements that may be required by the Lessor throughout the I original or extended term of this lease, including types of insurance and monetary amounts or limits of insurance, and to comp3y with said insurance requirements within sixty (60) days following the receipt of a notice in writing from Lesso: stating the ; i! following receipt of a notice in writing from Lessor stating the increased +)r adjusted insurance requirements. Lessee shall have the right to maintain in force both types of insurance' and amounts of insurance which exceed Lessor's minimum insurance requirements, I In the event that State law should be amended to require types of insurance and/or insurance amounts € which exceed those of like or similar public use f airports in the southwestern region of the United { States of America, then in such event, Lessor shall PAGE 4 0 have the right to require that Lessee maintain !n force ' types of insurance and/or amount of insurance as specified by State law. Failure of Lessee to comply with the minimum specified amounts or types of insurance as required by Lessor shall constitute Lessee's default of this Lease. 6. Paragraph D, NOTICE, of Section XVr MISCELLANEOUS PROVI- ! SIGNS, is hereby amenZed eo read as follows; D. NOTICE. Any notice given by one party to the other in c-)nnection with this agreement shall be in writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid as followss - 1. If to Lessor, addressed to: City Manager City of Denton Denton, Texas 76201 2. If to Lessee, addressed to: a t ' Mr. Charles V. Brown Mr. Bruce Brown 1000 Sherman Drive Route 3 ? Denton, Texas 76201 Rocnoke, Texas 76262 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. I IN WITNESS WHEREOF, the parties have executed this agreement as of this day of _-t 1967. CITY OP DENTON, TEXAS, LESSOR • f BYs ~ i RAY STEPHENS, MAYOR ATTESTS I JENNIFER WALTERS, CITY SECRETARY ' E PAGE S i ?I k APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCHj CITY ATTORNEY BY t Z21' l' <<Vyyt-- ! CHARLES V. BROWNt LESSEE i r ll j"' BRUCE BROWN, LESSEE THE STATE OF TEXAS S COUNTY OF DENTON S Subscribed and sworn to before me this day of 1987 by Charles V. Brown. a NOTARY PUBLIC, STATE OF TEXAS THE STATE OF TEXAS S COUNTY OF DENTON S Subscribed and sworn to before me this day of r 1987 by Bruce Brown. NOTARY PUBLIC# STATE OF TEXAS ` ; F r .4 I A~ PAGE 6 i f tea. '~a.U.r.♦,.;~...., 4.,,..iiw.'.n, ,....win„ . . Y Jay D. Rodgers Charles V. Brown 90o Austin Street 1000 Sharman Drive Denton, Texas 76201 Denton, Texas 76201 i This is Intended to serve as documentation or the mutual desire or Chaarles V. Brown to purchase Jay p. 6 Rodgers) partnership interest in the Brown-Rodgers Partnership, effective January 1, 1987. This consumated by the transferring of qq purchase is j consideration for the Partnership interest.vaIn addition to other consideration, Charles V. Brown agrees to assume Jay D. Rodgers, personal liability with the first State'Bank of Denton regarding the liability the Partnership incurred when it built the three aircraft hangars at the Denton County Airport. Thr agreement to the transfer of the Partnership interest is noted below by the signatures of the two parties. sy g e4a Are s r own. { 1 • I of 1.6 611 tool INNIe 1N.' levee. of NtNI $1 iW .I1utr6 to the P. Toby sorry, America a•Yt 1711, 4 Oontft Owntl, WA, Nlnf •l1 Wl "rules 1.170 ...I .•r<ol of tom neNlllft 1e too" Mrowet Mtfta IrM + Ifo.o, • p,1Nf N1., a" bntft .tq+rY..N bNrl04e 1!~ M 1140 4 Avr< M .,elate a. Kato, 11.10,11. w: 1 ~e, 117. a1N nrell as, , ooI se1M NCI putloolulf N•<flMn I1 110 elect ft fell d en6f usT f10./t rho" 1 b I. am aeon IYIIOI.O It a If" rat INn6 vet esceeq 0411 Oelnl uf•e we ■e+thout eItNr of 1.16 sr", t I, Mae T, w• 11 ~71ft' /•i j7} i lowl! IIrN, 111.11 (vet to 04 lees tat feeei tat "toot$ Zkoks, »'w'~•. "MCI brt\, 711.61 foot to a 1fN IN IeYM Ut +YN<t , tt1110e 1..1. 777.11 toot t• 11 It" et6 at let Nf .fr "'MCI Ifttl, 117.76 foot as a 01• vet Is eWNto !et "full "NCO toot, tol.71 loot to a Iris CM 041 Is$ Memo, •h+~ tl11MC1 t iT tl'IP a. 177,11 fool fe tLO KAN M h4.la ilq nM tlltololel 1.611 Ina of lees. Y _Z~ae.n TRACT 11 6.6tu 7NA I•'~"11 • 0."" oY0lN7Y0 It s. If" rat twat ae eofooe, u4- lot 8 . Kehl 11K*. 1i.P1 IM eeflMUt NtNr of .el4 IlM 6 IfMq IIYa lfA1b f M~ p1 • K'01/1ff, K +1r`• `o MIWI 6 11474-17. 1, 111.01 feel l/ an left eM N7 fa KIN It Y. hf.M n..y JO /S nYCI wee. I47.77 fool to s. •a• eIl is ewal/ t•r l i eel Nrq "lbc4 one to. 04L of INt to as Ia" goo got fu Wrq H I In llost, 119.44 look lilt be .a61 M If1SMIN nod % ng 4.140 acted of TFaCf 1 \ r o twareo \t . ~ tefroM Itr<tiolerM~ F+ 1 / I~IIMAY welt►wx , 160 1rt (w16 Ille/r 1uYCwY KIi IN116~~~ ir111, Y IDe "Am$ of ad met pooki IN a t o% Mr F/NROW >+~~'GO'fQ:S, /NC. AM WOWYNWYMI I* Look, "Oro", god ~6441 N 16 IWWYl6>•IyO~wMNN)lleiO lf «tlbNfser to A". la alitiU6 BROWN f BROMp A PAkTiER, '//P o~YWOM IOr OY~tHOffWit~Ia t 11 NX6 1. Y Qc ON ~4/Rf l 't pAffRTY Lj,*4Z of Ems acm wig mm m IN THE r 4-n "dol, l Oit" N N &1 1 1" al)w ~1lsY 1btW star a4- a tl.Nn, IIYN 6.1)1.1 t.IASaC47 t T08Y SURVEY o ABSTRACT TFZA9 (286 kOO' W a a a Nn ge Wf %b t a 111►t! .Y IONWO" OYMNY MIOYNY NYOosqNII, LNIo me god ' MMSO IO Oi~IfMt 6~yNt7 YrN{n, N 611076 by my N M W Y1~IO1 OfINf~/ W Wt0 see N IS N !OT M. HItKfMt ITAE[T I DOW TEXAS 7#101 r SURVEYORS. INC. 0171341-4016 r .H . s t~. fill MINUTES AIRPORT ADVISORY BOARD April 14, 1987 ' i ' r V C 6 j REGULAR MEETING OF THE CITY OF DENTON AIRPORT ADVISORY BOARD, TUESDAY, APRIL 14, 1987, AT 5:00 P.M., IN THE TERMINAL BUILDING OF THE MUNICIPAL AIRPORT. s MEMBERS PRESENT: Carrell, Hayward, Keith, Smith, Williams, Wright MEMBERS ABSENT: Arno OTHERS PRESENT: Bruce Brown, Charles Brown, Karen Allan; The Perot Group Representatives: Charlie Shelby, La' lrie Z etpal, Charles Willis of Charles W?llis and Associates; Rick Svehla, Deputy City Manager: er, • Diane Callender Assistant City Attorney; Ron Bowling, Airport Manager; Bruce Cardwell. Airport Assistant, 1. The Board considered the Minutes of the regular meeting of March 10, 1987. A motion was made and seconded to approve ' r the minutes as written. The motion passed unanimously. q r. 2. The Board considered any new business. The Board considered the assignment of Jay Rodgers, c? interest in the Rodgers and Brown lease to Charles Brown. t A motion was made and seconded to recommend approval of the assignment of Jay Rodgers' interest in the Rodgers and Brown lease to Charles Brown. The motion passed unanimously, . The Doard considered a report from the City Attorney's y office concerning the Maverick case, The case had been presented to the judge for summary judgment April 4, 1987 but no judgment had been handed down to date. 3. The Board considered a report on the assersment of personal f property taxes on aircraft. The Board Chairman, Frank Hayward reported on his conversation with the Appraisal District Chief concerning the ptgcadure tot appraising and billing. The Board expressed concern that there still was no equal application cf the tax law between taxing districts and no provision for equal application in the present state tax law. It was pointed out that there are two bills before the Texas legislation right now that would eliminate the property tax on aircraft. A motion was made and seconded y t yr t, Minutes Npril 14, 1987 E to recommend to the City Council to officially support the passage of bills HJR95 and House Bill 1736. The motion passed unanimously. The City Staff will check on the amounts the City, County, and School District are billing for a comparison of what they are actually collecting. 4. The Board considered a report from the Airport Manager on the response to the present marketing effort. Of the 4,200 flyers mailed on March 26th the airport had received negative response. The Manager presented s plan to send a different flyer to aviation related businesses nation wide. 5. The Board considered the Airport Manager's report. The Manager presented a request by Port A Port to place a hangar at the center of the Airport. A motion was made and of the seconded to recommend the approval placement of a Port A Port hangar at the center of the airport on a temporary basis. The motion passed unanimously. 6. The Board considered the proposed Haelet Air Park. The Perot Group Representatives presented the proposal for the North Tarrant County Air Park. The Board and The Perot Group representatives discussed concerns of location, airspace conflicts, competition in airport markets, h environmental impact and the use of public funds to build the proposed air park. A resolution expressing the City of Denton's support of the new airport facility was presented F, sr, k to the Board by the City Staff. A motion was made and 4 seconded to recommend to the City Council the acceptance of the resolution. The motion passed unanimously. with no further business, the Board adjourned at 8;30 p.m. , r 7 5i ff J~ F 2288 i1 ~ MINUTES AIRPORT ADVISORY BOARD August 25, 1987 k i SPECIAL MEETING OF THE CITY OF DENTON AIRPORT ADVISORY BOARD, TUESDAY, AUGUST 25, 1987 AT 5:30 P.M., IN THE TERMINAL BUILDING OF THE MUNICIPAL AIRPORT. MEMBERS PRESENT: Arno, Carrell, Ferrara, Smith, Williams, Woolfolk MEMBERS ABSENT: Wright OTHERS PRESENT: Otho Henderson, President of Maverick Aircraft; the Maverick Aircraft Staff; Charles and Bruce Brown; Frank Strickler of Fox-51; Rick Svehla, Deputy City Manager; t Diane Callander, Assistant City Attorney; Bruce Cardwell, Acting Airport Manager; Fernando Torres, Radio Operator. 1. The Board considered the Minutes of the regular meeting of I August 11, 1987. A motion was made and seconded to ap- prove the minutes as written. The motion passed unanimously. + 2. The Board considered the presentation by Otho Henderson concerning Maverick Aircraft. Mr. Henderson presented a list of grievances concerning the present contested lease. The issues of taxes, maintenance of City hangars, certifi- cate of occupancy, Ayla Schbley complaints about maintenance of aircraft, and a latter from the F.A.A. in response to the review of the Aerosmith lease were all presented. Mr. Henderson praised his staff for their hard work. Mr. Henderson stated he wanted to go on record that he recommended to the City Council that the present Board be disbanded and a now Board be appointed. 3. The Board considered the presentation by Bruce and Charles Brown concerning First Financial Resources. Bruce Brown updated the Board on the meeting held with City Staff. The Board discussed the term length and escalator clauses in the grown lease and the current Airport lease. A motion was made and seconded recommending that the city council accept a lease with First Financial Resources containing the same terms and conditions as the Brown lease contingent on approval of the lease document by City Staff. The motion passed unanimously. y, r`" r Airport Advisory Board Minutes August 25, 1987 Page 2 4, The Board considered the presentation by Frank Strickler of ` Fox-51. Mr. Strickler asked for some consideration con- a cerning the property he has leased. Development has not ` taken place like he had expected and so the lease for the property was becoming a financial burden. The Board asked for a written proposal so that it could be an item on the agenda of the next meeting scheduled for September 8, 1987. 5. The Board considered the Airport reorganization and budget. The Acting Chairman of the Board, Dr. Don Smith, updated the Board on the meeting between he and the Mayor and City Manager concerning the Airport staff reorganization and budget concerns. 6. The Board considered any new business, The Board asked if the list of tenants had been updated. It had not been. The Board asked if insurance policies required in the land leases were being checked. Risk management would be con- sulted. There was a question concerning the money owed the City by Mr. Bennett. This was reported as resolved. The Board discussed Airport security. A motion was made and seconded to recommend to the City Legal Staff to draw up an " amendment to the trespassing code so that owners of private property if they wish, can put up signs so that local r' authorities can help in keeping unwanted people off the property. The motion passed unanimously. The Board discussed the possibility of airshows and C.A.F. participation. The Board met in executive session at 6:55 p.m, and reconvened ' in open session at 7115 p,m, 7. The Board discussed the selection of the Airport Manager, They asked for the requirements the City had for the position. They also asked for the reinstatement of the monthly financial report. r .r With no further business, the Board adjourned at 7:25 p.m. L•E~~y~ ! E 1 i. r Lr 6 r, T , M7 0745k 1 Y~ y f WY of 0 ENTON TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78201 /TELEPHONE (6 1 7) 568.8307 Off1tG of the City Manager MEMORANDUM TO: Lloyd V. Harrell, City Manager M M' FROM: Rick Svehla, Deputy Ctty Manager t 1 DATE: September 10, 1987 SUBJECT: Animal Control Facility - Joint Construction s,F Attached is the final draft of an agreement between the County a M +tk and the City for joint construction of a part of the Animal Control facility. The additional $40,000 from the County will allow us to build more holding areas for animals and will allow s us to take animals from the County. r I 0 r, ,j Fxx d N We have put this item ot, the agenda in anticipation of the t County passing a resolution very similar to ours on Monday, September 14, 1997, If this is done, the Council would approve a the resolution on September 15th. ` 1 I realize that it is unusual for us to do this. However, since the County's fiscal year is the same as ours (i.a., it ends September 30) and since this is the last Council Meeting before October 1st, we must approve this so the County can allocate ' its funds. Obviously, if the County does not approve the agreement, we would not have to consider this as part of the a agenda. If you or the Council have any further questions, I will be happy to try and answer them for you. Srr W , 'x` t F x F1 C Ye 1 a Deputy City Manager sj e~E r' 3609M >x' r r~ s•~rs'w'+ry11~YY1.rM"~••.•a. r, r .r-,. n.. T. .i r'.i.i Y. ~ n J u~ 1968L W~... y RESOLUTION NO, i i A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR THE EXPANSION OF THE ANIMAL CONTROL CENTERI AND DECLARING AN EFFECTIVE DATE. s s THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: j SECTION I_ That the Mayor of the City of Denton is hereby author' zoo execute an agreement between the City of Denton and Denton County for the expansion of the City of Denton's Animal Control Center, a copy of which is attached hereto and incorpo- rated by reference herein. SECTION It. That this resolution shall become effective imme ately upon its passage and approval. + PASSED AND APPROVED this the day of , 1987. A y . . M~ h RAY STEPHENS, MAYOR 9 w ATTEST: a f'. } ° JENNIFER WALTERSF CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCHO CITY ATTORNEY BY: T ,f i a 1894L THE STATE OF TEXAS S INTERLOCAL COOPERATION AGREEMENT BETWEEN DENTON COUNTY OF DENTON S COUNTY 5 THE CITY OF DENTON t This Agreement is made and entered by and between Denton County, a political subdivision of the State of Texas, herein- after referred to as 'COUNTY," and the City of Denton, a home rule municipal corporation of Denton County, Texas, hereinafter ~I referred to as 'CITY.' WHEREAS, COUNTY is a duly organized political subdivision of the State of Texas engaged in the administration of county government and related services for the benefit of the citizens of Denton County; and WHEREAS, CITY is a home rule municipal corporation, duly organized and operating under the laws of the State of Texas engaged in the performance of municipal services for the benefit of the citizens of the City of Denton; and j i WHEREAS, CITY is engaged in the services of holding and disposing of dogs and cats at its Animal Control Center for the benefit of the citizens of the City of Denton; and ` WHEREAS, CITY is the owner of certain facilities and equipment designed for the holding and disposition of dogs and cats and has in its employ trained personnel whose duties are -sf related to the use of such facilities and equipment; and WHEREAS, CITY anticipates an increased number of dogs and cats to be impounded at its Animal Control Center and the City intends to expand its facilities to accommodate these anticipated needs; and WHEREAS, COUNTY desires to provide adequate facilities for the, holding and disposition of dogs and cats for the residents sa of the unincorporated areas of Denton County; and WHEREAS, the provisions of 'apoundment and disposition of dogs and cats is a governmental function that serves the public health and welfare and is of mutual concern to the contracting parties; and WHEREAS, COUNTY and CITY mutually desire to be subject to the provisions of Tex, Rev, Civ. Stat. Art, 4413 (320, the Interlocal Cooperation Act and contract pursuant thereto; ! NOW, THEREFORE, COUNTY and CITY# for the mutual consideration hereinafter stated, agree as follows: ;Y I. A. COVENANTS OF THE CITY i 1. provisions of Holding Space. For the term of this agree- ment, the CITY agrees to provide one thousand (1,000) square S feet of space in the Animal Control Center for the holding cf dogs and cats lawfully impounded by authorized representat+.ves 3 of COUNTY and/or brought to and released to the Center from { residents of the unincorporated areas of COUNTY, not to exceed t one thousand five hundred (11500) animals per year. S 2. Use of COUNTY Funds. The CITY agrees to use any and all funds contr ute by the COUNTY under the terms of this agreement for the purposes of expansion of the Animal Control Center an: all necessary repairs, maintenance or improvements for the CITY'S Animal control Center. The CITY will make no other use of such funds without written approval from the COUNTY acting through the Commissioners Court. 8. COVENANTS OF THE COUNTY 1. Financial Responsibility. The COUNTY agrees to contribute ,y the sum 07-Forty Thousand Dollars ($40,000) to the City of Denton to be us.d for the expansion of the Animal Control Center and for all necessary repairs, maintenance or improvements for the CITY'S Animal Control Center. This contribution shall be payable to the CITY within thirty (30) days from the execution of this agreement. 2. Furcose of Contribution. The COUNTY agrees that this contribution is solely for the purpose of securing holding space at the CITY'S Animal Control Center and does not provide for the reimbursement of operating costs to the City of Denton for the actual holding and disposition of dogs and cats from the unin- corporated areas of the COUNTY. Such costs shall be reimbursed to the CITY under the terms and conditions as set forth in the Interlocal Cooperation Agreement for impoundment and disposition services for dogs and cats executed by COUNTY and CITY on March 24, 19670 as the same may be amended from time to time. 3. Non-Refundable Contribution. The COUNTY agrees that the contribution or any-portion thereof, will not be returned to the COUNTY should the COUNTY elect not to utilize the holding space provided at the CITY'S Animal Control Center. Ii. I CITY agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all CITY'S employees, and agents, PAGE 2 CITY'S subcontractors, and/or contract laborers doing work under a contract of agreement with CITY in performance of this agreement with said CITY. COUNTY agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all of COUNTY'S employees, and agents, COUNTY'S subcontractors, and/or contract laborers doing work under an agreement or contract with COUNTY in performance of this agreement with CITY. It is further agreed thit if a claim or liability shall arise from the joint or concurring negligence of both parties hereto, it shall be borne by them comparatively in accordance ! with the laws of the State of Texas. This paragraph shall not j be construed as a waiver by either party of any defense available to it under the laws of the state of Texas. is understood that it is not the intention of the parties hereto to create liability for the benefit of third parties, but that this agreement shall be for the benefit of the parties hereto. III. The fact that the COUNTY and CITY accept certain responsi- bilities for providing facilities for the collection and impounding of dogs and cats under this agreement as a part of their responsibility for providing protection for the public health and welfare and, therefore, makes it imperative that the performance of these vital services be recognized as a govern- mental function and that the doctrine of governmental immunity shall be, and it is hereby invoked to the full extent possible under the law. Neither CITY nor COUNTY waives or shall be deemed hereby to waive, any immunity or defense that it would otherwise be available to it against claims arising from the exercise of governmental fun:tions. I f y The term of the agreement shall be for a period of ten (10) years commencing as of October 11 1957, and ending September 34, 1997. V. This agreement represents the entire and integrated agreement between CITY and COUNTY and supersedes all prior negotiations, representations and/or agreements, either written or oral. Tc.a agreement may be amended only by written instrument signed by both CITY and COUNTY. I VI. This agreement and any ?f its terms or provisions, as well Y as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. I PAGE 3 VII. in the event that any portion of this agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. VIII. ' The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions extending said authority have been duly passed and are now in full force and effect. EXECUTED in duplicate originals this the r _ day of September, 1987. CITY OF DENTON r~ BY: ' RAY STEPHENS, MAYOR r ATTESTS E ARY JENNIFER FALTERS, CITY SECR T APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY 1 .1< ~ BY: - J Aid 1 ',rJ 1 1 r , N a PACE 4 F. u T 1 COUNTY OF DENTON 'j BY:; VIC BURGESSe COUNTY JUDGE { ATTEST: MARILYN ROBINSON; COUNTY CLERK APPROVED AS TO LEGAL FORM: ROBERT S. MORRIS, ATTORNEY FOR DENTON COUNTY 1 9~ + ? BY: f r ,e y .5 y LY lie I I1 a i M~ k , 1 I I 6 ~p . PAGE 5 :v f I I , 1 , F i I If~l CITY of DENTON, TEXAS MUNICIPAL BUILOINO / DENTON, TEXAS ?020f / TELEPHONE (S t 7) 588.8301 i Office of the City Manager M E M 0 R A N D U X r~ Mayor and Members of the City Council Z x• 4 FROM: Jennifer Walters, City Secretary rr DATE: September 11, 1987 T+ SUBJECTI Back-up for Agenda Item # 7 1 1 No formal back-up material was submitted fcr this item. k t "rtl e r . p V t x Ir ` V N x Jell er ers - 5. 'Y y 2727C/2 r1 n ; 4 #a Y .5 f.' Yrf 'r I: V I Y S ~ V YY:~ r ~lAyr ~7. dir ~ i ° ?stn 3 '7 4 a t~1 Y ,•y' ~ '~YCb i {1 r f~ to Y t Sx i G ~ i \ ♦~y gygk} `i END s w t } r t I ' Yp e