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.
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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 ;
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Regulations for a. 12.05 acre tract located at the .
southeast cornor of FM 1173 and Mosch Branch Road:
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September 15, 1987
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~.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.
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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.
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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)
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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.)
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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
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railroad depot.
8. Miscellaneous matters from the City Manager.
9. Official Action on Executive Session Items;
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A. Legal Matters
B. Real Estate
C. Personnel
D. Board Appointments
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City of Denton City Council Agenda
September 15, 1987 i
Page 5 '
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10. New Business:
This item provides a section for Council Members to
j suggest items for future agendas.
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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.
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CERTIFICATE
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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
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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
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1. Hold a discussion of litigation including
the County of Denton vs. the City of Denton.
7 j
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V.A.T.S.
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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
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.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
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F~ 4. Bid NRFP 103 - Inserter Machine j
S. Bid #9780 Disposal of PCB Material +
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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.
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City of Denton City Council Agenda
September IS, 1987
t Page 3
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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.
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;E 8. Miscellaneous matters from the City Manager,
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4.
i 9. Official Action on Executive Session Items:
M A. Legal Matters
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B. Real Estate
Co Personnel
D. Board Appointments
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City of Denton City Council Agenda
September 15, 1987
Page 5
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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;.
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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
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TOt Mayor and Members of the City Council
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FROMt Jennifer Walters# City Secretary
DATE: September 9, 1987
r SUBJECT: Work Session Agenda Item # 1
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p No back-up materials were submitted for this Work Session
agenda item.
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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
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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.
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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.
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The Council then convened into the Regular Meeting at 7;00 p.m.
in the Council Chambers.
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PRESENT, Mayor Stephensl Mayor Pro Tem McAdams; Council
Members Ayer, Boyd, Gorton and Hopkins.
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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.
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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
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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.
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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.
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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.
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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
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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.
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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.
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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
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RAY STEPHENS, MAYOR
CXTY OF DENTON$ TEXAS
r
JENNIPER WALTERS
tire' CITY SECRETARY
CITY OF DENTON, TEXAS 2732C
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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
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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.
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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.
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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
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27340
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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
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t{ JENNIBER WALTERS
CITY SECRETARY
CITY OF DENTON► TEXAS f
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WY ofDENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78200 / TELEPHONE (817) 508.8307
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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.
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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.
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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
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CITY of DENTON
DENTON, TEXAS 70201
i
MEMORANDUM
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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
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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 {
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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~}'
.
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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
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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
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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
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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,~.
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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
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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
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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
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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
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s), } BACKGROUND: Tabulation Sheet
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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
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A °
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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
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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'
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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"
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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
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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
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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
•
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. 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~~
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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 ,
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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.
,
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A-47
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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
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Service Plan
Annexed Area
Page,. 2
i
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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
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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
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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
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A-50/PAGE TWO
r:
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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
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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
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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
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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
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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
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CITY ofDENTON,TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76101 / TELEPHONE(817)566.8200
blEhl0kAN_DUM
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°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.
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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
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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.
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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
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JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
4 $w BY:
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PAGE 2
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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.
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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 ~
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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).
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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
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° Harlan L, son
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Risk
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zxecuttvo Director of Hnance
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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
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i
RAY STEPHENS, MAYOR
E
ATTESTS
%
JENNIFER WALTEF.S, CITY SECRETARY E
APPROVED AS TO LEGAL FORMS
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
1
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ATTACHMENT A
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ATTACHMENT A
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AIUMtiGHT
A A %righl
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- 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
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INSURANCE PROPOSAL
1 FOR
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THE CITY OF DENTON, TEXAS '
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August 13, 1986 E
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Alan H. Armbruster
Arkwright Insurance Company
12700 Hillcrest Road
' " VIII Suite 270
r,ba3 Dallas, IX 75230
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OVERVIEW
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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.
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CLAIMS SERVICES
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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
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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.
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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: $
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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
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VIII. DEDUCTIBLES: 'All-Risk" $50,0 00 Combined
IX, PREMIUM: $38,285 annually
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5 r X. COVERAGE OPTIONS: Coverage for scheduled vehicles at described
~rAS:ry locations $6,535 annual premium, policy
r deductible applies. 3
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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.
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CURRENT ARKWRICHT POLICYHOLDERS IN 'DF
,
i
CITY OF DENTON
CITY OF DALLAS
I
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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
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ALL RISK POLICY
STOCK COMPANY FORM
. f
Policy No
Arkwright-Boston Insurance
0M, Arkwright- Boston Insurance Company
225 Wyman Streel, Waltham, Massachusetts 02154
i
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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.
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farm y 3WT
` Feckry IANUaI Service Aureau FADE 3 OF 1 Etlo'On May 1985
Norwood, Me154ChuU11j
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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 ,
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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.
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Form 3404T WE I Of I
For" Mutual Servita Sureau - , .r:
. ` _ ;ryrvrDed. Maafacnwetta
PAVntED M U 4 A
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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. -
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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
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} ' y; t tr Norowd. Muuuhm"s poplaCN March 1080 f
r~ a PAIN1EDIN UBA
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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.
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111 recrory Wulf Service Sweatt PAGE OF p .
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FYIINiFD+N U 3 A
PnINIE EG~ban Mercn 1 4N
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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,
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Facl°ry Mutual Scrvicr BmPau P IF I Or 7
i 15d,110" Naw°°d. Mauachueeu15d,110" Marco 1981
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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.
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PAINTED IN t r " .
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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:
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Form 1701
Faerory Mulual Cameo Bmaau PAGE 1 OF I ENV$ Malch 1991
+ { No(wood. Maaaaihutatll
DRINTEO IN U 9 A.
A.
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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
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Form 1700
Factory Mulue Service Bureau PAGE I OF I Edihan January 1977
Norwood, AlMICNS1110
PAINTED IN UTA
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ATTACIIMENT 8
ARTHUR J. GALLAGHER & CO.-DALLAS
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August 13, 1987
City of Denton
Re: insurance Proposal/Renewals !
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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 ^
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} Respectfully,
Leonard
Account Executive
Enclosures
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TLFX: 214.991.4081
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ARTHUR J. GALLAGHER & CO.
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Airport Liability Policy
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Global Aviation Insurance
Cities Exposure $ 1,000,00 C.S.L. Limit
' j (Conth,gent Liability',
8,008 Premium
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Southeastern Aviation (Texas), Inc.
nit - $1,000,000 C.S.L. for premises - Products Liability €
$ 50,000 any one aircraft
150,000 anyone occurrence .
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Ground Hangar Keepers' Liability {
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tx For $5,000,000 - $24,000
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EIYIPLOYep9 Ca9UQLTY Company
EMPLOYORS NaTlonBL inSURance COCY1Pa1'1Y iI
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POST OFFICE BOIL 21911 OALtA9, TEXAS 79271
{ August 12, 1987
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Mr. Harlan Jefferson, Risk Mana&er
City of Denton
401-B Texas St,
Denton, Texas 76201
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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
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Carolyn Osborn, CPCU, AAI
r.' Risk Management Services
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EMPLOYERS S #SUKWA OF 7ExAl trt+ + n,+a,w,mro+e, Cenroq' I t or, NtlbnM Uh Imurrw tMVU7 f
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CITY OF DENTON
WORKERS' COMPENSATION CASH FLOW PLAN
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1 Programt Texas Political Subdivision Vorkers' Compensation Joinc Insurance Fund
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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
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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.
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CITY OF DENTON
WORKERS' COMPENSATION CASH FLOW PROPOSAL
Programs Texas Political Subdivision Workers' Compensation Joint Insurance
Fund
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Estimated Standard Premium ;828,978
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Contracted Services Annual Cost
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1. Claims Hendling Services 7.5% of paid losses
2. Administrative Services $11,467 M,
t` 3. Safety Engineering Serviceo 120435
44 Catastrophe Reinsurance
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$200,000 Retention 35,646
` Per Occurrence
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@ $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,
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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
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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
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RETENTION
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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
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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
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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.
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Election of Officers- Meetings
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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
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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
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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
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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.
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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,
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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.
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+ 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.
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K. It may hire attorneys$ accountants or such other professional j
„ y persons that it may deem necessary for the proper protection of
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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,
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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.
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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,
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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IN WITNESS WHEREOF, the parties have hereuneh15et their hadnayso y
their representatives thereunto duly authorized
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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.,
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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
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tj ' `A4DRES5
ZIP
5 CITY
M TELEPHONE
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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
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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
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Contract Number Jued Member
By: 1
Signature
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+:s TEXAS POLITICAL SUBDIVISION YORKERS'
COMPENSATION JOINT INSURANCE FUND
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?i By. TPS fund Secretary
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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
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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
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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.
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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.
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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
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` 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.
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ATTACHMENT D
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NTV of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566-8100
i
MEMORANDUM
,
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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,
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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.
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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
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.
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
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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
.
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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
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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
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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:
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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
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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,
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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,
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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
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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
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i All services which require special facilities in order to
meet customer's service requirements shall be provided subject to
the special facilities rider.
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PAGE 2
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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
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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
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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
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PAGE 5
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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
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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
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PAGE 7
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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
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PAGE 8
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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 ~
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} 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
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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
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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 ~
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ve
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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
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PAGE 15
. r II
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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 . `
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I !
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.I
~ i
a II
¢ 4, R vim" d
ksrs
f~~F 't4
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PAGE 17
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y Y IF' . n v.tvFf{Ir'F.'y rr it{✓.i9 ti.JWi}fk~~'~.
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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.
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1'.
~ ~ is > l
v ~
444^ r I
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1i
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PAGE 19
, ,Y .^"i:a~!x.4akW dx°';',31.SA7arV A;»'. r1A~rM,:-~,«...•+
e I 1
1
SCHEDULE WS
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RESERVED
rah r r a Ri~
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4 ivy L r.{~ ' 's'
rf~"~ 1~ Ja
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PAGE 20
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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
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a PAGR 22
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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
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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
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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 .
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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
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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 ,
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i
1 ' ~ 111
t y . •lr.
1
y
5 1 ; 1 `
R
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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
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2 7 2 7 2
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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
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14
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' 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 ]
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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 <
,
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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)
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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,
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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.
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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.
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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
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Mad: Sep-ember 1 1976
i
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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
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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,
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(Bruns), or any one or more of such entities or ( r
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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
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{S) such other services as the Agency and a City, from time to time, shall determine to
t be appropriate and necessary.
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(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
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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;
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(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.
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(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.
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(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.
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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
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(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%
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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,
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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
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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
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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.
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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,
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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
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(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
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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
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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
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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.
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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
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1970L
RESOLUTION NO.
v"
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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:
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I . L y k p.
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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
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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
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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.
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( 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.
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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
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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
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{
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
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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
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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
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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
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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
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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
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PAGE 15
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.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.
.
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Airport Advisory Board Minutes
August 25, 1987
Page 2
i
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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
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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
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5
1
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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 +
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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
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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
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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.
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MINUTES
AIRPORT ADVISORY BOARD
April 14, 1987 '
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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
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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
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F 2288
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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,
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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
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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
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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
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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: -
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1 COUNTY OF DENTON
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BY:;
VIC BURGESSe COUNTY JUDGE {
ATTEST:
MARILYN ROBINSON; COUNTY CLERK
APPROVED AS TO LEGAL FORM:
ROBERT S. MORRIS, ATTORNEY
FOR DENTON COUNTY
1
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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
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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.
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