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01-17-1989
7 s pe r E 3 h 1 AGENDA CITY OF DENTON CITY COUNCIL January 17, 1989 Work Session of the City of Denton City Council on Tuesday, January 17, 1989, at 5:30 P.M. in the Service Center Training Room, 901A Texas Street, Denton, Texas at which the following items will be considered: Note: also Any item listed on the Agenda for the Work Session may Regular Meeting. f 5:30 p.m. 1. Joint discussion with the Human Resources Committee to Committee. j j 2. Receive a response from the Finance Department regarding the Report to Management of Deliotte, Haskins & Sells. 3. Consideration of a draft ordinance dealing with drawing on City sidewalks and provide staff with direction. 4. Consideration of proposed zoning, of tot Article 1of Styns, of Appendix Ordinances. 5. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel/Hoard Appointments Under Sec. 2(g). Art 6252-17 V.A.T.S. 1. Continue evaluations of the City Manager, City Attorney, and Municipal Judge. 2. Consider appointments to the Airport Board, Citizens Traffic Community Development Block Support Commission, and the Low Income Housing Task Force. l t t City of Denton City Council Agenda January 17, 1989 Page 2 Regular Meeting of the City of Denton city council on Tuesday, January 17, 1989, at 7:00 p.m. in the Council Chambers of City hall, 215 E. McKinney, Denton, Texas at which the following items will be considered: 'l:00 P.M. 1. Resolution of Appreciation for David Ellison. 2. Presentation from Mr. Tom Van regarding raising the basic meter fee for taxicabs from $1.20 to $1.30. I 3. Receive a request from the Cross Timbers Girl scout { Council to hanq a banner at Locust Street and McKinney Street. 4. Consider adoption of an ordinance authorizing the { issuance, sale, and delivery of City of Denton Certificates of obligation, Series 1989, and approving and authorizing instruments and procedures relating thereto. J 5. Consider adoption of an ordinance authorizing the is3uance, sale, and delivery of City of Denton General Obligation Bonds, Series 1989, levying the tax to pay same, and approving and authorizing instruments and procedure:, relating thereto. 6. Public Hearings A. hold a public hearing on a detailed plan in an existing Planned Development District (PD-6). Petitioner is Pep Boys of California. ,inc. The property is located on 1-35E in San Jacinto Plaza Shopping Center adjacent to Wolfe's Nursery. it approved, the property may be utilized for an automobile service center and automobile parts store. Z-88-016. (The Planning and Zoning 111, Commission recommends denial). 4 7. Consent Agenda: Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. 11 1 City of Denton City Council Agenda January 17, 1989 Page 3 Listed below are bids and purchase orders to be 1 approved for payment under the ordinance section of the 8.h, GInformation . Thisislisting attached aenda. Detailed provided I (Agenda Items back-up on the Consent Agenda to allow Council Members to discuss any 1 Item prior to approval of the ordinance. A. Bids and Purchase Orders: r~ 16 RPP #9902 - HVAC Design and Renovation 2. Bid 09923 - Tree Spade/Transplanter 3. Bid 09924 - Vans, Pick-ups 6 Trucks 4. Bid #9925 - Police 6 4-Door Sedans 5. Bid #9918 - Personal Computers 6 Software 6. P.O. #88172 - Data Processing Equipment an Software. r 8, Ordinances A. competitive Consider adoption of an ordinance accepting contracts forthepurchae of materials, s equipment, supplies r services. B. Considet adoption of an ordinance accepting competitive bids and providing for the award of contracts for public wotks or Improvements. C. Consider adoption of an ordinance providing for the expenditure of funds for purchases of materials or equipment which are available from only one source in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. j i ~ ll. Consider adoption of an ordinance amending Chapter 15 "Parks and Recreation" of the Code or Ordinances of the City of Denton as amended, amending Section 15-6 by prohibiting certain motorized vessels on City park bodies of water. (The Park board recommends approval). I 1 I s 4 y City of Denton City Council Agenda January 17, 1989 Page 4 F. Consider adoption of an ordinance awarding a contract to Coopers and Lybrand to conduct a managerial study and actuarial audit for the City of Denton Health Insurance Fund. 1'. Consider adoption of an ordinance authorizing tM execution of a contract between the City of Uenton and the United States Army Corps of Engineers for access and site activities on the hydropower project at Lewisville Lake. (Tile _ Public Utilities Board recommends approval). 3. Consider adoption of an ordinance approving supplemental agreement No. 2 between the cities of Dallas and Denton; authorizing the mayor to execute the agreement; approving the expenditure of funds therefor. I 9. Resolutions i A. Consider approval of a resolution supporting j legislation to create a regional water and wastewater system for Denton County. (Tie Public Utilities Board cecor.mends approval). B. Consider approval of a resolution designating certain city officials as baing responsible for, acting for, and on beh;,if of the City of Denton in dealing with the Texas Parks and Wildlife Department for the purpose of participating in the Land and Water Conservation Fund Act of 1965; and certifying that the City of Danton is eligible to receive assistance under such program. (The Parks Board recommends approval). C. Consider approval of a resolution setting a date, time and place for public hearings on the proposed annexation by the City of Denton, Texas of certain property located along tha Elm York of the Trinity River. (A-58). C D. Consider approval of a resolution endorsing the j reinstitution of passenger rail service through Denton County. E. Consider approval of a resolution supportiily the extension and the instrument Landing System (iLS) at the Fort Worth Alliance Airport. Y. Consider approval of a resolution supporting the j establishment of a Jones Farm Living History Center. l i i i z q I i 1rr u If` I City of Denton City Council Agenda January 17, 1989 Page 5 G. Consider approval of a resolution approving an agreement between the City of Denton and the J Denton independent School District for a joint 1 I' election. 10. Consider approval of a 43' tower extension for KdZY - FM 99.1 and direct staff to advise the F.A.A. (The Airport Advisory Board recommends denial). 11. Miscellaneous matters from the City Manager. / A. December Budget Recap B. Update on Lone Star Gas Gate Rate Filing (Energy Partnership). 12, official Action on Executive Session Items: A. Legal Matters B. Real Estate C. Personnel ` D. Board Appointments ? 13. New Business: f , G This item provides a section for Council Members to I suggest items for future agendas. 14. Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel/Board Appointments Under Sec. 2(g), Art 6252-17 V.A.T.S. CERT 1 F 1 CATS 1 certify that the above notice of meeting was posted on the bulletin board at the CUy Nail of the City of Denton. Texas, on the day of 1989 at o'clock CITY SECRETARY 3030C 1 j Jill] r i I I ~ e i 3 YT r# 1 1 ,I i ITr COLINCIL.J7CP,CjRi_FQRMI,T DATE. 1/17/69 TC' Mayor and McMoers of 1 the City Council FROM: t_lgyd L', ilarrell, ti;ity rgana5er SUBJ: Joint Meeting of Utt„ Resources ' C'ounr i and the Human Comrittee tc disu,ss funding criteria. RECQMKM gDATJC)r~; Staff recommends acceptance of revisions to --1 HRC policies and procedures document. SUNI1 AljY; The Human Resources Committee had requested som,l guidance from Council on chr,nges to their existing funding decision process, C; suggestions durin our+cil made several Januar 1 9 their November 22, 1989 and Y U, 1989 work sessions. Those suggestiuns are incorporated into the iRC Policies and Procedures for presentation to both Council and HRC in the joint meeting. P$4GR~11~. _PEPaRtMEtJT,__QR..PPrJUPS__AFFE,CTE The Human Resources Committee will experience some { subtle changes in their decision-making processes. Agencies requesting funds will be expected to supply 1 information regarding their agency's fiscal and pro- 4rammatic documentar,ion of furtions Agencies must recognize that ocmpr lia and need. nce City requirements i:; necessary in or der with all funding. Additional repotting uir to receive requirements may be expected from all aggeenncies. s. Actions will affect f any new agency requesting? funding especially for 9 funds, lyy/sub i ted: R*()H Larrel Pr ar e b Y CyLer Barbara Ross G~~"`'" Corr,munity Cevelooment Coordinator I ~ APpr'oved: . s A1C i Executive Direct for Piar•"Iirg C Derelrpment 1 J i IIU1W1 RESOURCE ADVISORY l'YCI PTEE POLTCiES AOU PROCEDURES I. Statement or PucEose of Commltleet The Human Resources Committee acts as an advisory committee to the City Council. Its members are appointed by the council. rho purpose of this Committee is to intAract with community groups in order to bring about improvementa in the human services delivery system and provide a forum which promotes better communication and coordination among the agencies, to work closely with the United Way and other funding agencies is order to coordinate funding efforts within the City, to serve in an advisory capacity and encourage continuous In-depth evaluation of the effectiveness of the human service delivery syst.,m in Dentont and to recommend to the City Council, actions for implementation that would improve human cervices in the City of Denton. I1. Human Resources Defi_nedt The term human resources (services) refers to those agencies and services that are designed to be available to targeted groups or individuals throughout the community. Basic services not'mally provided at the local government level m,iy be carried out by human setvice agencies in an effort to improve the general quality of community life. I ( I III. ~ II General T es_of Reyusets to be Considered by the Committees human resource agencies, individuals, or organlxattons~currently operating in the City of Denton, and/or new agencies proposing to conduct operations within the City will probably request an appearance before the Committee for one or more of the following reasons: a. To coordinate their agency's program with other community agencies, b. To disseminate information to the Committee, c, To request unofficial recognition and support by the committee. d. To request a letter of support by the Committee and/or an official letter or resolution by the City Council. e, To request financial asslstanca from the City Council, 1V. General Policies and Procedures for Considering a Request by a_Numan Resource A enc , Individual or Organization: The policies and procedures adopted by the Human Resource Committee will apply to all individuals and agencies that have made a request to appear before the Committee. I A, The Committee normally meets on the first Thursday of each month. Agencies' or individuals wishing to appear before the Committeb shall request to be included on the agenda at least seven (7) working days prior to the Committee meeting. I I J a. • Numan Rpnource Advlnoey l'ommittce Page I D. Each ag+nry or tndlvidual will cnmplete and return to the staff Prior to the seven (1) working days, a questionnaire entitled 'Questionnaire for a Human Resource Agency.' 'these will be made available through the City Staff. to t nlimit s by their representatives pre 01 to 20a minut,29. The agency will areserves C. Presen Presentations sentation which exceeds this period of the right to interrupt or halt a pre time. . The Committee reserves the right to limit the number of agency requests D per meeting. E. rAgencies or inrividals makng esponsible forialluhad outimaterialstandoaudio/videoheq ipme tt whichlthey may desire to use during this presentation. P. mAll edia,u however, the Committee may triequestrthatPrepresentativesiof aagencies wait outside while the Committee is discussing and deciding what appropriate action to take in regard to that particular agency's request. 1 V. , All agencies, individuals { Sub ect Matter to be Considered b, the Commute eat before the Human Resource or other types of organizations requesting to app uestionnaire which will be Committee will complete the Human Resources Agency q provided by the Staff. The questionnaire will be placed in a file and copies distributed to the Committee. The questionnaire is designed as a ' comprehensive agency. Section t Ir deals with general tinformationsn1Section p1I sfocuseao on the nature of the agency's requests section III is used if any agency iv requesting funds section 1V dwells on 093 circular A-95 informations characteristics Section i Y includes questions on organizational dmakgeneral of the ing body' Section VII is the agencyncys ' Section VI dealt with th the e policy the ser provided financial rep. The ection w was developed tot llow for specific provided the agency. 9 be updated in the areas changes dur lr.j the year. The questionnaire would only that have experienced some type of change, deletion or addition and/or perhaps expansiono the Committee, Council Agencies requesting an official letter of support hould be prepared to provide re solutl:n or financial assistance from the city ty the following information in addition to completing the questionnaire. 1. Proposed budgets by overall agency and by program. 2. An auditor's opinion statemer.: as to the agency's financial position. i 3, Goals and objectives of any new proposed program, project or service. I401a 3 rl i Iluman Rpnourco Advinory Committer Page J 4. Monitoring or evaluation statement by the funding agency or licensing agency. 5. Annual report for the latest fiscal, gran' or calendar yaar. 6. For new agencies or new projects, etc. the Committee will look closely . at the methods for continuing operations after the first year. 7. Documentation as to the community's need. 8. A breakdown reflecting administrative costs as compared to the type and amount of service cost per client. 9. Turn down letters by state or federal funding agencies. V~ 17. A list of other anurces from whom the agency may intend to solicit financial assistance. j i VI. Types of Actions or Recommendations to be Made by the Committee; A. Where agencies are only desiring to disseminate information or coordinate their agency's efforts with the Committee, the Committee will probably take no action. S. Where agencies are requesting unofficial recognition or letter of support from the Committee, the Committee shall act by a motion and approval by a l majority of the Committee. C. Where agencies desire official support or recognition by the City Council or requesting financial assistance, the Committee shall act by a motion and approval by a majority of the Committee. The Committee will prepare a formal recommendation which will be transmitted to the City Manager's i Office. The Committee's recommendation will follow one of the three recommendations listed below; It Favorable Recommendations A favorable recommendation will mean J that the agency has satisfieu all the Committee's request for information, has met the Committee's standards as set forth in the Comprehensive Human Resource Plan and has documented the community's need. 2. Favorable _ Recommendation with Stipulations= A favorable ' recommendation with stipulations will mean that as agency has ' j satisfied all of the Committee's requesta for information, met I ' their standards and has documented the community's need except where the stipulation applies. An agency may resolve the I stipulation and precede on to a formal presentation before the City Council without reappearing before the Committee. 2407a ~i 4 k . E tr.ra ,In Rea III tco A,lvLnorY Cnmini Ilan Page 4 3. unfavorable Recommrrni~jtion, An unfavorable recommendation will mean that the agency has failei to satisfy the Committee's request for information, met their standards or documented the community's need. 1 D. Aggncles soliciting flnarnclal support from the City should be aware that there may be more requests than there is money an thaa thatothelr recommendation by the Committee does not necessarily guarantee agency will receive a financial commitment by the City Council. E. The Committee will attempt to recommend a specific dollar amount to the Council for those agencies reguesting financial assistance, however, the { + City Council may elect to revise this specific dollar amount. VII. I i Establishment of Priorities for Financial Assistance ReglinsteI Realizing that the City has limited financial resources for the Numan Service Delivery System li and that the demand by alencles may excerd these resources, the Committee will rank the agencies and/or their projects in accordance with the following criteria, The priority criteria will determine the appropriateness of the i activity for funding by the City. Capacity criteria will allow ranking based on the ability of agencies to deliver services. , 4 New agencies will normally receive funding for a maximum of three years. Agencies are requLred to request funding each year from the Haman Resources k Committee. City funds will not be utilized to fund activities hgeneracereregard d as the domain of another level of government, i.e., t f Priority CriteriA% 1 1. Services constitute a fundamental activity of local governments 1 a. transpnetetion I~ b. public safety c. law enforcement d, environmental services M 2. Agency provides service more cost effectively than would City ` department/personnel. 3. Serves target population i.e., elderly, children, low income, handicapped. 4. Services are unduplicated within the City of Denton. ' 5, City funding constitutes less than 50% of total budget. 6. Administrative costs are not excessive in relationship to the agency's function. i Ilumnn Resource AJvlRory Comm Itt:er Page 5 CapaclGI C[IteCllr A. Fiscal 1. Tracking of City funds is adequate as recommended by the Finance Department 2. Timely submittal of quarterly reports 3. Independent annual audit performed 6. Programmatic 1. Services objective met 2. Timely submittal of quarterly service reports 3. Services coordinated with other agencies C. Administrative 1. Complete proposal submitted 2. Acceptable policies and procedures for provision of services 3. Hoard of Directors VIII. 1 Public Hearings Conducted by the Committees In order that the Committee can assist the City in developing its annual budget where it pertains to the Human Service Area, the Committee will conduct meetings or public hearings. These meetings or public hearings will be specifically held for agencies, individuals or organizations which are seeking financial assistance from the City. The meetings and hearings will be scheduled to coincide with the development of the City's annual budget. Once the Committee has been notified by the finance director and provided with a proposed time schedule, the Committee will formulize its schedule and process. Although, the schedule may vary from year to year, it will generally convene sometime in the spring each year. The method to be used by the Committee in determining fair share allocation and distribution of funds will be decided In accordance to City policy for that proposed budget year. This method will need to be defined each year prior to conducting meetings and public hearings. Notices of public hearings and meetings will be published in the newspaper and by other means as decided by the Committee. Ix. peal Procedures: Since the Human Resource Committee serves in an 1 ` advisory capacity to the City Council, there are no formal appeal { procedures established to provide guidance to a particular agency who has received an unfavorable recommendation, ranked as a low priority, or had a stipulation attached to the Committee's recommendation. It will be at the discretion of the City Council to either uphold or disaffirm an 4 T . Humnn Aenourco Ad vi Rory Comm itlnn Page 6 unfavorable recommendation, stipulation, or other requirement passed by the committee in reference to a partitalar agency. An agency however, may elect to reappear before the Committee at a later date to produce new information, facts, or findings which may cause the Committee to alter or revise its Initial recommendation. X. Adoption and Uissemination of these Policies and Procedures: The Committee will review and adopt a set of policies and procedures. The Committee will then present the policies and procedures to the City Council for their review ani adoption if so desired by the Council. The policies and procedures will --1 remain in effect until amended, at which time a revised set will be approved by the Committee and resubmitted to the City Council. The Committee will furnish the council and all future Councils with a copy of the policies and procedures. Agencies requesting to appear before the Committee will receive a copy by staff at the same time the questionnaire is requested. Copies may also be requested directly from the staff. j 1 , 7 2407a i I t I 4+41144 11 1 Ij I 111 f 1+4 I I I ELJEI~ i a 1rr s I _ t r rte' ✓ ~ T~ Vr 1 CJTVofDENTON,TEXAS MUNICIPAL BUILDING i DENTON, TEXAS 76211 / TELEPHONE {817) 566.8200 I MEMORANDUM DATE: December 13, 1989 TO: Lloyd V. Harrell, City Manager FROM: John F. McGrane, Executive Director of Finance SUBJECT: AUDIT RESPONSES Attached is a copy of the Finance Department's audit responses to the Report to Management for the Year Ended September 30, E 1988, as submitted by Deloitte Haskins and Sells to City Council on January 10, 1989. The Finance Department has responded to I all of the items indicated except the section titled "Employee f i benefits," The response to the "Employee Benefits" is under separate memorandum from Mrr. Tom Klinck, Director of Personnel. A copy is attached herewith. Should you have any questions regarding any of these items, we ~ } will be more than happy to respond. 1 ~ II' o n Mc rar e~ ~ J JFMcG:at Attachments ~ i139F 1 I I i I I 1 a y C~f{~At~D ItZYBST~ENT~CT~VIT,IE~'S ' Repurchase Agreements Observationt The City's investment policies with regard to required collateral on repurchase agreements are vague. Recommenlatton: To strengthen the policies regarding repurchase agreements, the City should consider amending the investment policy to: o Require 102% collateralization of all repurchase agreements. During times of interest rate instability, consider requiring 105% collateral ization (standard in the brokerage industry). This would protect the City more fully from market erosion. Response: During, fiscal year 1987-88, the City entered into one i~ repurchase transaction with the depository bank. It is our opinion that repurchase agreements will become a more active investment vehicle in 1988-89. All repurchase agreements under review presently, have established 102% collateralization as the acceptable standard. We will review with the Investment Committee the potential of utilizing a 105% collateralization policy. o Include a time limit for repurchase agreements. When a repurchasie agreement exceeds thirty days and sophisticated surety pricing mechanisms are not in place, the probability of market exposure is increased. Response: As to the time limitation on repurchase agreements, a 30 day maturity will be recommended to ocr Investment Committee. o Include a listing of approved securities for use as collateral. If a time limit is not introduced, only securities that can be price tested easily should be allowed (such as U. S. Treasury securittes and other allowable securities that can be priced by reference to the Will Stret:t Journal). Responses A recummendation regarding approved securities for use.- as collateralizing repurchase agreements will be reviewed by the Investment Committee. Repurchase Agreement - Definition Contractual transaction between an investor (city) and an issuing financial institution (bank or securities dealer). The Investor exchanges cash for temporary ownership or control of collateral securities, with an agreement between the parties that on a future date the financial entity will repurchase the securities. The investor is paid interest in the investment luring the time of the transaction. I Savings and Loans Observations The City has invested in certificates of deposit and other accounts of savings and loans institutions. I ,J V I IL ` t Cash and Investment Activities Page 2 of 3 I Recommendation: Although not prohibited by law, currently cities in the State of Texas are discouraged by current guidelines from depositing funds in savings and loans institutions. The City should consider amending its investment policies to reflect the current environment. 1J Response: Presently, we have certificates of deposit with two locally owned and operated savings and loans. These CD's were initially set up as "good kill" deposits in the early 1980'&. At one savings and loan, we have slightly over 921,000 which is insured up to 9100,000 by the FSLIC. At the other, we have approximately 9176,000, covered by $100,000 FSLIC insurance and 9195,000 (market value 1-10-89) in Federal Home Loan Mortgage Company securities. This issue will be further discussed at our investment corunittee meeting. Cash Transfers Observation: Cash held at various banks can be transferred between City accounts by phone with no written authorization. Also, these banks do not have a list of authorized accounts to which the cash may be transferred. These procedures currently do not provide the City much assurance against unauthorized transfers of cash. Recommendation: Banks where cash is held and which allow transfers between accounts by phone should be provided with a list of authorized accounts. In addition, there should be a maximum amount allowed by phone. Also, the person 4 at the City who made the transfer by phone should complete a transfer notice and give it to the proper Finance Department personnel. The transfer confirmation received from the banks should be agreed with this notice and the appropriate journal entry made. Response: Cash can be transferred within our depository bank from one city account to another city account by making a phone call. Cash transferred from the depository bank to another institution bank or securities broker is authorized in writing with two signatures. Confirmations are then received by the City from the bank via the mail. On October 4, 1988, a letter of authorization was sent to two financial institutions other than the depository bank with instructions regarding wire transfers, and a list of authorized accounts for the transferring of funds. Regarding the amounts transferred by phone if the transfers are authorized in writing then the maximum amount authorized under the finance administration ~tt guidelines should prevail. Safekeeping Receipts Observation: The City does not receive original safekeeping receipts of the collateral pledged against the City's bank deposits from the custodian bank. Requests to the custodian bank to forward the original safekeeping receipt to the City have been denied. I I i t 1 I 1I Cash and Investment Activities Page 3 of 3 Recommendation: 'fte depository agreement should be revised to specifically state that originv.l safekeeping receipts should be forwarded to the City. Alter.:,ti,-ely, the agreement should be revised to state what other documents or procedures woiA d be acceptable to the City and the custodian bank. This procedure would ensure that the securities are owned by the City in the event of any bank uncertainties. Response: We receive the safekeeping receipt copy labeled customer copy. We Have documentation received last year from the depository bank and the safekeeping bank. The City's depository contract expires in 1989 and we will include the auditor's recommendation in the request for proposals. i ` I I 1 i i 4 I I I }[P 3 I 1 . iD SAM l i i F S Cash Disbursements Observation: A special escrow account was opened at a bank for purchasing equipment. When the bank received authorization to disburse the funds in the account, a cashier's check was prepared and the equipment was purchased. However, no documentation was forwarded to the Accounting Department personnel responsible for recording these transactions. As a result, the purchase of the equipment was not recorded on a timely basis. Recommendation: A11 cash disbursement documentation, especially when the cash disbursement involves special procedures, should be forwarded to the proper Finance Department personnel. Responstt The Accounting Division concurs and additional procedures were instituttd to ensure that cash inflowa and outflows will be recorded on a j timely basis. 1 Fixed Assets Inventory Observation: The City has performed periodic physical inventories of fixed assets purchased with federal funds. However, a complete physical inventory has not been performed within the last two years for all City fixed assets. I i Recommendation: Perform a complete City-wide fixed asset physical inventory. 1 ~ Retponset The Accounting Division concurs and will review the possibility of performing a complete City-wide fixed asset physical inventory in the 1989-90 fiscal year. Because of the coat of a total city-wide inventory this recommendation would require additional budget appropriation and will be an item included in the 1989-90 requests for funding. Reconciliation of Utility Receivable Records Observation: The monthly accounts receivable detail ledger prepared by the i customer Information System ("CIS") was not reconciled to the general ledger. The City has reconciled the daily CIS to the general ledgers however, instances were noted where the sum of daily CIS reports did not agree with the monthly CIS report. i Recommendation: Reconcile the daily CIS reports and general ledger to the monthly CIS summary. ` Response: A review of the process is currently underway. The reports are currently being researched to determine if a revision of procedures is required. i I I I i I f I r Accounting Procedures and Issues Pape 2 of 4. iii?F _bU Observation: Currently, the city relies ou its system of internal accounting control and annual independent audit to provide assurance that the financial statements are fairly presented. While this reliance is adequate, an internal audit function would provide an additional control level and establish a system which would better monitor operations and the accounting system of the City. Recommendation: Consider establishing an internal audit function. Internal auditors' duties and responsibilities vary widely among cities. Frequently, internal auditors are involved with operational reviews and special projects as contrasted with the traditional role of financial auditing. 4 k The internal auditor should have no authority over, nor responsibility for, f the activities examined. In order for objectivity to be maintained, we suggest that the individual performing this function report directly to the City Manager and report semi-annually to the Audit Committee of the Board. 4 This type of arrangement should provide a level of internal control through segregation of responsibility and give the internal auditor the authority required to operate across departmental lines to best perform the job. Response: The Finance Departmcnt concurs with this recommendation. Although a package was submitted in the Budget Process for the 1988/89 budget, it was not approved due to funding limitations. We feel this is an important budgetary item and will review the recommendation during the 1989/90 Budget Process. $EP~ Utilizing Report Writer function i Observation: Financial statistics, taken from the LGFS reports, are being input into the Wang word processing system or Into LOTUS spreadsheets to allow for ad hoc reporting or other changes. The American Management System's report writer function is not being utilized by the user departments. The AMS report writer is perceived to be extremely complicated to use and users have not been properly trained. Recommendation: Users should be trained to use the report writer function, or other report writing systems should be considered. Responses In reviewing this item with the auditors after the fiscal year close at September 30, 1988, it was reported that the PCI downloading ani report painter package from LGFS was approved in the 1988/89 Budget Process. This program is anticipated w be implemented in the 1988/89 fiscal year. 4092F I ' .tiff not RPfy{!!f F tiP N. J..M t.. n R R tjjPLOYEF BENEFITS Submitted under separate co•ier by Mr. Tom Klinck, Director of Personnel. I , i j I i I I i rA ~ t TAg INFORg~EPORTI C F_MAWA egg Forms 1099-MISC Observation: The City is required to file forms 1099-MISC in regard to payments of $600 or more to all unincorporated businesses of rent or compensation for services rendered. Such forms are not required for payments for merchandise, freight, storage or similar charges. Iv the past, the City has filed such forms in regard to payments to indtvid,:als only. It is probable that there is a substantial number of unincorporated businesses with which the City does business for which such forma are required to be filed. The penalty for failure to file correct information returns is $50 per occurrence ($100,000 maximum). Recommendation: The City's Finance Department is now aware of the problem and is taking steps to ensure that the proper Forms 1099-MISC are filed for 1988 and future years. i Response: The Accounting Division concurs with the recommendation and is , manually checking the 1988 data. Procedures are being revised for the 1989 data to alleviate this problem. i Magnetic Media Filing Requirements J i Observations In cases where an entity is required to file 250 or more Forma W- or Forma 1099-MISC, such forms cannot be filed on paper, but must be filed using magnetic media. The City is required to file Forms W-2 on magnetic media and has been doing so. However, no efforts have been made to develop the capability to file Forms 1099-MISC magnetically. It is possible that the City will be subject to the magnetic media filing requirement in regard to its :o:as 1099-MISC. The penalty for failure to file magnetically where required is $50 per occurrence 0100,000 maximum). It makes no difference that the required information is filed on paper; if it is not filed magnetically, the penalty still applies. Recommendation: fhe Finance Department is analyzing whether to develop the magnetic media filing capability internally or to go with an outside vendor. Unless the capability can be developed internally at very low cost, we consider it likely that an outside vendor would be the less expensive alternative. Response: The City is not currently required to file magnetically due to the number of 1099's filed. We will request Data Processing to consider 111 filing magnetically for the 1989 filing. i i k 1 ~ h ~J/ i } MKRcI?'~1 coM Observation: The City has implemented a municipal court software package which appears to support several key operational areas. The system is not integrated with the City's general ledger or other financial systems. Recommendation: Study the feasibility of integration of the court system with the financial system. This may require development of conversion software or other special programming. Responses Although the system physically cannot be integrated, a study is presently underway to determine the feasibility of interfacing the court system with the financial system. 1 I I M r a i i 4133F 1/13/89 I 1 1 s t f `r k Formsl Contracts Observation: The city has entered into a formal contract with the Denton Chamber of Commerce which defines all requirements for uses of tax revenues including reporting of performance. However, formal contracts have not been executed between the City and other recipients of occupancy tax revenues including the Greater Denton Arta Council, historical Society and North Texas Fair Association. Recommendation: The City should enter into formal contracts with all recipients of occupancy tax revenues. Response: Although the City does not have contracts with the Arts Council and the Historical Society, it does have a contract with the Denton Cultural Confederation. The Confederation is the oversight organization for distribution of 3% of the Lalor Hotel/Motel Room Occupancy tax collection; 1% goes to the Denton County historical Foundation and 2% to the Greater Denton Arts Council. With regards to the North Texas Fair Association, the City entered into a contact with the Association on April 1, 1986. The Finance Department will forward copies of the contracts to the Legal department for recommendations on updating the contracts, and/or having additional contracts with the Arts Council and Historical Society. I Reporting of Revenues ~I Observation: The ordinance providing for the levy and collection of a hotel occupancy tax requires that each hotel provide a report to the City detailing revenues and other data requested by the City. The ordinance also requires the hotel to submit a copy of the report filed with the State Comptroller in connection with the State of Texas Hotel Occupancy Tax. A majority of hotels are not complying with this requirement, yet are filing the standard City report. Recommendations Require all hotels to submit a copy of the State Comptroller's report for additional verification of revenue received. Res onset As of October 25, 1988, the City has requested that each hotel submit a copy of the State Controller's report along with the City of Denton report. The tax division will continue to monitor the quarterly reports in order to insure compliance. I~ 412OF 1/13/89 r CITYoiDENTON,TEXAS MUMICIPALBUILDfNG DENTON, TEXAS 76201 / TELEPHONE(817)566.8200 M E M O R A N D U M TO: Betty Mcrean, Executive Director Municipal Servicea/Economic Development FROM: Thomas W. xlinck, Director Personnel/Employee Relations DATE: January 12, 1989 SUBJECT: 1987/88 Deloitte Haskins Sells Audit Report - Employee Benefits M (Health Care Budgeting, Deficit Fund Balance, and Actuarial Study) E Betty, this is to provide information concerning Deloitte Haskins Sella 1987/88 Audit Peport relative to their observations and recommendations on , each of the three items above. In 1987/88 budget year, while no salary adjustments were granted, the City council approved changes to the self-insurance program to Incorporate additional coverage enhancements and implement cost control measures. Thus, in Fall 1987, we implemented a Preferred Provider Organization and Utilization Review Program with open enrollment. Also, during Fall 1987, we began Il I experiencing the first of several significant and extraordinary 'shock' ` claims. In addition, two HMO options (Maxicare and Southwest) were offered to { employees. This resulted in fewer employees participating in the self- insurance program. Thus, a lower number of employees or premium payors were in the plan to support the, at that time, increasing claims. Realizing the fund could potentially end the year in a deficit position, an extensive and detailed computer software model was developed to project various acenarioa of revenues, claims, and expenses of the fund. This budget methodology incorporated many of the items recommended in the audit report, and with the upcoming Management Study and Actuarial Audit (explained below), these will be thoroughly reviewed and appropriate adjustments made. I might add that in preliminary conversations, Coopers and Lybrand representatives indicated our model is very close to the one they are currently using with the University of North Texas and Texas Woman's University. They further indicated our level of sophistication in this area is well beyond that of other firma they have experienced. In April, 1988, the possibility of salary adjustments for City employees was reviewed. It was decided that given the city's budget position and the local economic outlook, sufficient justification did not exist to support an I increase in salaries at that time. In June, we reviewed the possibility of a rate increase for employees in the self-insurance fund, given the continuing increase in claims experienced and 'shock claims' that were occurring at that times However, since salary increases were not given, it was decided to monitor any need for Increase in the health insurance rates, until claims would level out. J a 3 I Memo - Betty McKean; DHS Audit Report - Employee Benefits Page 2 Luring the 1988/89 budget process, several scenarios were examined to compare employee salary adjustments against employee insurance rate increases, dollar infusions to the insurance fund, and impact on the insurance fund balance. Attachment 1, 2 and 3 show the significant impact on employee rates and seilaries to achieve a fund surplus in one year. These scenarios were d a cussed with the City Council at their June, 1988 strategy meeting. In order to reach a reasonable solution to provide adequate health insurance for employees at an affordable cost and have a fine,ncially stable insurance fund, the following five year plan was recommended and approved by the City Council for the 1988/89 budget. (This was also discussed at the June strategy meeting - Attachment 4.) 1988/89 $170,000 City contribution I - Employee rate increases by category* Spouse - 201 Children - 201 Family - 301 { -Fund ttanagement study and Actuarial Audit ($30,000) !I 1969/90 Employee rate increases by category* ` Spouse - lot children - 101 ` Family - 201 t 1990/91 k 1 - Employee rate increases by category* Spouse - 101 Children - lot Family - 20% 1991/92 I Employee rate increases by category* Spouse - lot children - lot Family - 201 1991/93 - Employee rate increases by category* Spouse - lot Children - 101 Family - 201 I *Rate increasea implemented if required. I I it J u t N t i 7 F. Memo - Betty Mclean ' DBS Audit Report - Employee Benefits Page 3 These plans were designed to spread rate increases over time so as not to create a major financial burden on employees and their families in a short time period. Yet, it provided a workable solution and set up the funds to bring in outside expertise with the Management Study and Actuarial Audit. As previously reported, open enrollment brought many employees and dependents tack into the self-insurance fund. On one hand, this increases the revenues available, but on the other hand it may increase claims. Some minor plan design changes have teen implemented to better control utilization in certain areas and shift costs to the frequent users in those areas. We have also recently received approval from the Executive Committee to establish an Employee Insurance Committee. The purpose of this committee is to increase communication with employees about the insurance fund and the importance of controlling costs. We also hope to solicit their ideas in finding ways to help us monitor and control costs. With respect to the deficit fund balance, we have continually monitored this situation throughout the year. The major reason for this situation has been over $385,000 in 'shock' claims that are quite unusual for a plan our size in any one year. Another factor that has contributed to the 1987/88 year-end i deficit in the fund is a dispute with Washington National Insurance Company, carrier for our individual and agtregate stop-loss insurance. At this point, we have finalized our claims to this company for reimbursements. We believe we are justified and entitled to the following amountss Individual Stop-Lose !241,511 Aggregate Strp-Loss 1930156 i Total Estimated Stop-Lose $434,667 By the end of January, we will have prepared a demand letter with the Legal Department's assistance to attempt to expedite recovery of these funds, With the recovery of these funds, the employee rate increases (previously shown) and the $170,000 contribution by the City, the anticipated change in the insurance fund deficit is as follows Fund Balance as of 09/30/88 ($-797,066*) City Contribution 5 170,000 Stop-Loss Recovery 434,667 Subtotal $ 6040667 Adjusted balance (5-1920399) *Reported by the Finance Department (includes 60 day accrual for anticipated claims) These balances include a year-end accrual of $233,937 for outstanding claims as of septerber 30, 19886 1 I1 F f ( Memo - Betty McKean DIIS Audit Report - Employee Benefits Page 3 These plans were designed to spread rate increases over time so as not to create a major financial burden on employees and their families in a short time period. Yet, it provided a workable solution and set up the funds to bring in outside expertise with the Management Study and Actuarial Audit. As previously reported, open enrollment brought many employees and dependents back into the self-insurance fund. On one hand, this increases the revenues available, but on the other hand it may increase claims. Some minor plan design changes have been implemented to better control utilization in certain areas and shift costs to the frequent users in those areas. We have also recently received approval from the Executive Committee to establish an Employee Insurance Committee. The purpose of this committee is to increase communication with employees about the insurance fund and the importance of I` controlling costs. We also hope to solicit their ideas in finding ways to help us monitor and control costa. With respect to the deficit fund balance, we have continually monitored this ' situation throughout the year. The major reason for this situation has been over !385,900 in 'shock' claims that are quite unusual for a plan our size in any one year. Another factor that has contributed to the 1987/86 year-end F deficit in the fund is a dispute with Washington National Insurance Company, carrier for our individual and a99regate stop-loss insurance. At this point, we have finalized our claims to this company for reimbursements. We believe ` we are justified and entitled to the following amounts: f` Individual Stop-Lose $241,511 I` Aggregate Stop-Loss 193,156 i t ` Total Estimated Stop-Loss $434,667 Ir By the end of January, we will have prepared a demand letter with the Logo] Department's assistance to attempt to expedite recovery of these funds. With the recovery of these funds, the employee rate increases (previously shown) and the $170,000 contribution by the City, the anticipated change in the insurance fund deficit is as follows: Fund Balance as of 09/30/88 ($-797,0660 ~ City contribution $ 1700000 Stop-Loss Recovery 434,667 Subtotal $ 604,667 Adjusted balance ($-192,399) OReported by the Finance Department (includes 60 day accrual for C anticipated claims) i These balances include a year-end accrual of $233,937 for outstanding claims as of September 30, 1966. I I i Memo - Betty McKean DHS audit Report - Employee Benefits Page 4 The Management Study and Actuarial Audit addressing the previously discussed problems is a top priority item. Requests for proposals were eent to several consulting firms in late November 1988. We have received responses from four firms, analyzed the details of what each firm has proposed, and recommended the City Council award a contract to Coopers and Lybrand. (This has been scheduled on the January 170 1989, City Council agenda.) The Coopers and Lybrand proposal anticipates an 11 week study, and thus, we would have their results ready for presentation to the City Council the latter part of April 1989 or early May 1989. Civen their proposed comprehensive review of our program, we should gain valuable insight into our current methodology of projecting health care costs, claims and expenses. Their recommendations for ' - alternatives to funding, plan design, cost controls, etc., should assist us in keeping our program financially sound. I might caution this could possibly require some additional rate increases in employee coverage. In summary, we recognize the magnitude of the self-insurance fund deficit and the turmoil that exists in the health care industry in general. We ere in agreement with the observations and recommendations by the auditors. We believe that we have implemented many of the recommendations marls by the auditors and have in-placed a process to incorporate the remaining recommendations by year-end. Our highest priority is to obtain a resolution to this problem and have a financially sound insurance program for employees at a reasonable cost. The Management Study and Actuarial Audit is anticipated to bring forth the best 111 management information and suggest strategies to effectively manage our Insurance program. Should you need further information concerning this, I will be happy to respond. Thank you. i I Thomas W. Klinck 5227P 011389[0835 I {i S S F. ATTACHMENT 1 RESEARCH ALTERNATIVE Fund Surplus in FY 1988/89 J (Without City Support) j Category % Increase Additional Monthly Cost Employee and Spouse 200% $152.38 Employee and Children 200% $ 96.28 { Employee and Family 225% $252,00 i Projected Fund Salarv . $39,003 { I A 1) 1 y I S ATTACHMENT 2 RESEARCH ALTERNATIVE it Fund Surplus in FY 1988/69 (With City Support) $170,000 I f Category % increase Additional Monthly Cost fff E Employee and Spouse 75% $ 57,14 Employee and Children 75% $ 36.11 I Employee and Family 125% $140.00 I l rrrrrrrrrrrrrrrrrrrrrrrrrrrAS go rrrrrrrrrrrrrrrrrrrrrr►►rrrrrrrrrrrrrrrrrrrrrrrr I I Projected Fund Balance - $10,639 I II q 7-7 yg 4 } C '1 ~ {7 ' I ATTACH?ENT 3 COMPARISON 1NSLRRANCE RATE INCREASE TO EQUIVALENT SALARY INCREASE 1988 1J Hourly Insurance Hourly Equivalent Cateoory Employee Rate Increase Equivalent Salami Increase I Alternative without City Support 1988/89 (200/200/225%) spouse Firefighter 8.01 200% (152.381mo) .88/hr 11.0% Police Officer 11.74 7.5% Labor Sanitation 6.25 14.0% Children Firefighter 8.01 200% (96.281mo) .56/hr 7.0% Police Officer 11.74 4.7% j Labor Sanitation 6.25 9.0% Family Firefighter 8.01 225% (252.00/mo) 1.45/hr 18.0% Police Officer 11.74 12.4% Labor Sanitation 6.23 23.2% Alternative with City Support 1968/89 (75/751125% - t$170K) spouse Firefighter 8.01 75% (57.14/mo) .33/hr 4.1% Police Officer 11.74 2.8% Labor Sanitation 6.25 5.3% Children Firefighter d.01 75% (36.111mo) .21/hr 2.6% Police Officer 11.74 1.8% ' Labor Sanitation 6.25 3.4% Family Firefighter 8.01 125% (140.00/mo) .81/hr 10.1% Police Officer 11.74 6.9% Labor Sanitation 6.25 13.0% 4775P 061568;0155 l' ATTACHMENT 4 CITY INSURANCE FUND 1986/69 RECOMbENCATIONS o Graoual shift of health care costs to employee/family Croups incurring losses (minimum City support) - E170,OU0 infusion (1988/89) - Rate increase by category '1986/69 - 20/20/30 #1969/90 - 20/20/30 #1990/91 - 10/10/20 '1991/92 - 10110/20 '1992/93 - 10/10/20 Switch Utiliti:ation Review to improve effectiveness { o fund Actuarial Aucit ($30,000) - Re-evaluate philosophy - Determine feasiblity of maintaining self-insurance fund ~ I 4775P/p. 15 - 3 'f 061688;0855 I I ~ i I I "s S E C17-YoIDENTON,TEXAS MUNICIPAL BUILDING DENTON, TEXAS 76201 % TELEPHONE(817)566.8200 M E M 0 RAN D U M TO: John McGrane, Executive Director for Finance IIII FROM: Thomas W. Alinck, Director i Personnel/F:rtployee Relations DATE: January 9, 1989 SUBJECT: Sick Leave Program - Auditor's Report Betty, this memorandum provides information concerning the City of Denton sick leave program and the Deloitte Haskins and Sells (DNS) report. The auditor's report cites an internal Personnel Department report on sick leave and includes recommendations to monitor sick leave usage and possible l abuse. It also suggests consideration of a sick leave incentive program. The report referenced by the auditor's report was developing the initial components of our annual compensationnandrbenef.its8 in program proposal. We were exploring several ideas and issues related to health insurance, wellness, ways to Improve productivity, etc. A draft program presented to benefits you as a possible alternative in the compensation and proposal was a sick leave Incentive program. As I recall, you 1 challenged this program, and we took out the sick leave incentive program in favor of higher priority items (i.e. Updated Service Credits, MLR holiday, etc.). j Subsequent to that in September, 1968, I was asked to meet with Jay Riley, an auditor from DNS. In that meeting the main focus of the discussion centered around the insurance fund, what we had done, how the data was analyzed, and what was presented to City Council. There was also discussion about the PPO utilization, co-pays, etc. The sick leave program was discussed in relation to the health insurance cost. We discussed sick leave usage and ways we monitored possible abuse. Research indicates the City's sick leave program is very typical of other programs of cities our size. The City's sick leave usage for calendar year 1988 was approximately 80690 hours at an estimated cost of $123,851 (throu5h payroll ending December 23, 1988). This figure reflects each employee's actual hours of sick leave (as reported by departments) times the hourly rate of pay at the time sick leave was taken. It does not include any lump our payments to retiring or t,,rminating employees. As reflected in Attachment 1, our usage is similar to what other cities have been experiencing. i 1 1 i Memo - Betty McKean sick Leave Program - Auditor's Report Page 2 i A sick leave program is a vital part of the employee benefit program. It is a key part of the total compensation package, like vacation or holiday pay. As such, it is considered a normal cost of doing business. We believe the sick leave program is a good benefit program for employees. The sick leave benefit provides employees an opportunity to continue re,:eiving pay when legitimate illnesses of the employee or an immediate family member occur. Sick leave is also used for major illnesses such as a heart attack or for pregnancy. k Abuse of sick leave occasionally occurs and we, as an organization, have II established mechanisms to assist supervisors in monitoring this. For example, J ---1 the sick leave policy allows a supervisor to require a supporting doctor's 1 statement when the 'legitimacy' of an employee's illness is in question. We have also produced special reports on employees by department who have higher 4an normal usage to help the supervisor pinpoint and discuss potential abuse with the employee (Attachment 2). j Ii mary, the sick leave benefit program for city employees is a usual and necessary cost in the total compensation package. The cost to the City is in j , line with what our research shows other cities are experiencing, and we have developed effective methods for supervisors end managers to monitor sick leave use and potential abuse. j' I will be happy to furnish any additional information you feel is necessary. Thank you. { j Thomas JWc cc: Betty McKean Lloyd Harrell 5209P { 010969:0745 i ~I I I i, J 4 k ATTACHMENT 1 SICK LEAVE SURVEY I I I I I I Number I I Percent Regular I Sick Leave I Accrual l Average I of IFull-Time City Days Amount I Usage I Cost I Payroll EMO 2yees* _ E k I I I I Arlington 115 days/year f 150 days I N/A 1 $1,383,747 1 N/A 1 1,833 I ~ I I I I I I f I I I Carrollton 1 15 days/year I unlfmited I N/A 1 335,972 1 N/A 764 i I I I 1 I J~- 1 I I I I I Denton 1 12 days I 90 days 16 days I 423,851 1 1.7% 1 789 I I I I I 1 _ I I I I I I I i Garland Ilst yr - 10 dysl 20 days I N/A I N/A I N/A 1 1,574 15th yr - 1 dy I I I j ladded ea yr up I I I f I Ito a max of 20 I I I I I i Idys I I I I I j I I I I I I 1 I 1 ! i I 1 Irving 115 days I unlimited I N/A I N/A I N/A t 1,311 r I I I I I I ~ I I ~ I I 1 I Lewisville 1 12 days 1 180 days I N/A I N/A I N/A 1 370 I 1 I I I I ~ I I 1 ! Mesquite 115 days I unlimited 1 6 days I N/A I N/A 1 724 i I I I I I I Plano 15 days I unlimited 1 6.43 days 1 560,254 f 21 I 11050 1 I I 1 I I _ k I I ! I I Richardson 1 15 days 1 120 days I N/A I N/A I N/A 1 835 N/A - Not Available "As of March 1988 I 5209P 010369:1000 1 1 ~V r #k s 9 f I k { i i G~ C~ NO. 510 I z AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SECTION 21-9 OF THE CODE OF ORDINANCE RELATING TO THE PLACEMENT OR PAINTING OF SIGNS ON PUBLIC PROPERTY; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $500.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That section 21-9 of the Code of ordinances is amended to read as follows: Sec. 21-9. Painting or Marking on Public Property; Permit for Address Numbers. (a) It shall be unlawful for any person to draw, mark, or paint any sign, picture, or character upon any sidewalk, pavement, curLstone, utility pole, public bridge, public building, public right-of-way, or other public property, except as otherwise provided in this section. (b) The prohibition of paragraph (a) of this section shall not apply to per:;ons marking or painting upon a public sidewalk by making use of chalk or other similar materials which are water-soluble. (c) The prohibition of paragraph (a) of this section shall not apply to persons desiring to paint house numbers upon curbs in consideration of payment by the owner at that address and who first makes application and obtains a permit from the City Secretary. The application form shall contain the name and address of the person making application, minimum standards for the 1 application of such numbering, and such other information as may be deemed necessary. Such house numbers shall be placed only on the curb in front of the dwelling on the driveway return portion of the curb. In no event shall numbering be place upon a curb without first obtaining payment or approval of payment from the owner of the property. I SECTIQE II, That any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $500.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION III. That this ordinance shall baeome effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official I I 1 J 1 f. a Fq i 1 newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. day of , 1989. PASSED AND APPROVED this the RAY STEPHENS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY F BY., f I f 4 r II f Page 2 3 V i e } 91.E STREETS AND SIDEWALKS } 21.9 from any street or other public property in the city or to construct, alter or destroy any street, sidewalk, curb or gutter in the city, except under authority granted by the city council. (1959 Code, Art. 14.06) Cross reference-Vandalism, } 14-9. Sec. 21.7. Tampering with street lights and related equipment. lJ It shall be unlawful for any unauthorized person to tamper with, damage or destroy any street light, white way light, signal light, power line, clectric light line, line pole, trans. former, or guy wire supporting or steadying any light pole, or any other electrical equipment of the city. (1969 Code, Art. 14.06) Crow references-lfaricing or defacing windows or doors prohibited, 1 14.7; altering, injuring, etc., traffic-control devices, } 24-88. Sec. 21.8. Destruction of ornamental trees and plants along - streets. It shall be unlawful for any person to injure or destroy any shade or ornamental tree, or other plant growing or i j planted along any street, sidewalk or alley, or within any I public grounds or property of the city. (1969 Code, Art. 14.06) E f Cron reference-Marking or defacing windows or doors prohibited, See. 21.9. Signs, advertisements not to be painted or placed on sidewalks, curbs, public property, etc.; permits and applications. It shall be unlawful for any person to place or paint any sign, picture, character or other advertisement upon any side- wa£k, pavement, curbstone, utility pole, public bridge, public building, public right-of-way, or other public property except upon express permission of the city council. Provided, how- ever, persons, desiring to paint house numbers upon curbs may do to by making application and obtaining a permit from the city secretary of the City of Denton, Texas. Such I house numbers. shall be placed only on the curb in front of I the dwelling or on the driveway return portion of the curb. Sapp- No. 0 796-1 I` I I t i k i i , { I R1-0 DENTON CODE 21.10.1 s , In no event shall any numbering be placed upon a curb with- out the express approval of the owner of the property. The application form shall co-, ain the name and address of the person making application, minimum standards for tho appli. cation of such numbering, and such other information as may be deemed necessary. (1959 Code, Art. 14.08; Ord. No. 78-18, Pt. 1, 411-78) Cron reference-Indecent writing and pictures on walls, house or sidewalks, 1 14-88. Sec. 21.10. Selling upon or obstructing streets or sidewalks- Permission required. It shall be unlawful for any person to sell any wares, goods or merchandise from any stand or place located within or upon any public street or sidewalk or to otherwise obstruct any public street or sidewalk except by express permission from the city council. (1959 Code, Art. 14.09) - Cross reference--Sales generally, Ch. 20. ~ See. 21•10.1. Same-Conditions and provisions prerequisite to Issuance of permit. In accordance with section 21.10 of the Code of Ordi- nances, the city secretary is hereby authorized to Issue per- mits for certain sales or vending from and upon public streets j according to the general procedure established for solicitors, and pursuant to the following conditions and provisions: (a) The city secretary shall obtain name and address of the owner or owners of the business being conducted, its loot agents, and of each driver and salesman connected therewith. (b) Investigate each owner and employee or agent through the police department. ; (c) Obtain copies of, or proof of, each appitcaat's: (1) Food handlers permit; (2) Health card; (8) Drivers license; Sapp. No. 29 7982 ! j . I i i~ y C 1 4 - - - - - - - - - - - - - - - - - - - - - I I r I i r I` 1 1 1 it 1 P I I I I I a + r~ i i 6 DATE: 01/17/89 I CITY COUNCIL REPORT FOIZ,MA'C TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: DISCUSSION OF REVISIONS TO ARTICLE 17, SIGNS OF APPENDIX B, ZONING, OF THE CODE OF ORDINANCES RECOMMENDATION: i The Planning and Zoning Commission recommended revisions to the sign 1 ordinance at its meeting of January 11, 1989. - SUMMARY: A summary of revisions is attached. BACKGROUND: The Beautification Task Force began review of the Sign Ordinance in 1987 and recommended changes to the City Council in October of that year. The Planning and Zoning Commission review began in July of 1988. A number of meetings including representatives from the f Government Relations Committees of the Chamber of Commerce, the Beautification Task Force, and Planning and Zoning Commission have j been meeting for several months to discuss the revisions. ' ' I PROGRAMS DEPARTMENTS OR GROUPS AFFECTED: ' Sign company owners, business owners, City staff and citizens of Denton. FISCAL IMPACT: No impact has been determined at this time. A fee schedule will be forwarded to the City Council with the revised ordinance for Article 17 of Appendix B. Respee ly sy~mi Prepared by: i,loyd Harrell City M.aneger J Cecile Carson ? Urban Planner f APPioved: i 1 ~ obbina, AI Executive IIirector f r Planning and Development 1 1519k i i i J 3 f t SIGN REVISIONS Key revisions included in the Planning and Zoning Commission recommenPation: 1. It shall be ualaw:ul for any person to erect, place, or locate any portable sign on any premise after the effective date of the ordinance. 2. Height of signs ir. Residential Zoning Districts shall be limited to six (6) feet. 3. Nonresidential Zoning Districts: (a) 1-35 - Maximum effective area - 250 sq.ft. Maximum height - 40 feet (b) Loop 288 - Mtiximum effective area - 150 sq.ft. Maximum height - 30 feet (c) All other streets - Maximum effective area - 60 sq.ft. Maximum height - 6 feet i Exception: Any premise permitted to have more than one on-premise ground sign may, in lieu of erecting any two permitted ground signs, be permitted one ground sign of a Maximum effective area - 120 sq.ft. Maximum height - 15 feet E 4. No off-premise signs shall be located within 1500 feet of another off-premise sign on the same side of a public street. 5. No person shall display one or more wind device signs on any premise without a permit. A permit shall be valid for thirty (30) consecutive days. No more than 3 permits for any one premise shall be issued in any one year. 6. Two ground signs which are used to display only a national or state flag shall be permitted per premise without regard to other provisions of the ordinance, and one ground sign which is used to display a registered corporate logo on property owned or controlled by the corporation. The size and height of these ground signs shall not be limited unless the corporate logo is displayed alone in which case the corporate logo shall be limited to a 50 sq.ft. effective area 30 feet in height. 1519k i I i k r i SIGN ORDINANCE REVISI014S Article 17 } Proposed Revisions i State Standards Cif applicable) A developed tract under one owner- I Section A.2.g ~ I ship or for undeveloped property I Definition of a premise I by plat or by deed or recorded I document if unplatted Currently defined by plat or if not I j platted by deed or recorded document i } } Add wind device to definition of an Section A.2.j. (1 I attached sign I ~ Definition of attached sign Add definitions for abandoned signs Section A.2.j. I } and wind device. Definition section I } Section A.'s.l. i MovP definition Definition of wind device Section A,2.1 and J. I Combine definitions I Proper sheilding of lighted signs } and flashing, blinking, or travel- j ing lights I I Section A.2-J- I Add new definition for inflatible 1~ I signs } Proper sheilding of lighted signs I { and flashing, blinking, or travel- ing lights } I ~I r V , SIGN ORDINANCE REVISIONS Page 2 Article 17 Proposed Revisions State Standards (if applicable) _ Section A.2.k. Add to section that portable signs ~ are prohibited except for those f New sectiot lawfully placed prior to the amend- ed ordinance Section A.6 This provision would require i New section an individual to have a license I on licensing before doing any work re3lting to f I I i signs in the City of Denton I Section 8.2,c. Revise to clarify that three ground signs are allowed per peemise for Revise to clarify number and location national, state and corporate flags I of a national or state f19g on premise Not included in number of signs per and corporate flags premise. Corporate 50 sq.ft.-30' are permitted unless the corporate flag is flown with a national or - I~ state flag. Section B.4. Permit Fees are included in Zoning I Remove specific fees from this Ordinance for signs ~ ordinance and place in a separate ~ fee ordinance Section C. No additional portable signs would be permitted. On-premise Two (2) with an effective area Add requirements for nonconforming ~ of 25 square feat or less, or portable signs more than one (1) of an effective R area of more than 25 square feet SIGN ORDINANCE REVISIONS Page 3 Article 17 Proposed Revisions State Standards (if applicable) Off-premise See previous page sit (6) off-premise relating to the same business, activity, event, product or service, whether one or more, located at any establishment I Section D.l.b. i Reduce height to six (6) feet. Residential Districts (Height) I I j No sign shall have a height greater E 4 than twenty-five (25) feet. { ! I Section D.l.e. A ground sign shall be separated { 1 by a minimum 500 feet from another Residential Districts (Number) { ground sign on the same premise. Any premise which has more than one Any premise having frontage on more hundred (100) feet of public street than one arterial or collector frontage on any one street may make street may make use Of one ground use of one additional ground sign for sign on each separate street. each additional one hundred (100) feet { of frontage or fraction thereof. Section n.l.f. and D.2.g. All ground sign shall be construct- ed of stone, concrete, brick, rout- { Residential Districts and ed wood planks or beams, or similar Non-Residenti9l Districts materials. The face or message ! portion of the sign may include I i { plastic material if it does not 1 encompass more than 50% of the 1 i effective area of the sign. F ; E SIGN ORDINANCE REVISIONS Page 4 Article 27 I Proposed Revisions I I State Standards (if applicable) 11 Section D,2.b. I Reduce the maximum height to forty Nonresidential Districts (Ifei ht) I (40) feet along freeways except g I Loop 288. Loop 288 maximum height No sign shall have a het ht thirty (30) feet. All other signs g greater I shall have a maximum height of six + than forty (40) feet except signs I (6) feet unless a premise would be I along Interstate 35. I allowed more than one on-premise sign then one sign fifteen (15) in I height would be allowed. Section D.2.c. I Reduce the maximum effective area Nonresidential Districts (Site) Loop 288 maximum effective area No sign shall have an effective area 1shall 50 sq.ft. All other signs II greater than four hundred (400) square I of 60 sq~fte unlessmaepremiseewould feet except signs along Interstate 35. I be allowed more than one on-premise I I sign then one sign 120 sq.ft. would be allowed, Section D,2 I A ground sign shall be separated Nonresidential Districts (Number) I by a minimum 500 feet from another ground sign on the same premise. Any premise which has more than one I Any premise having frontage on more + hundred (100) feet of public street I than one arterial or collector frontage on any one street may make I street may make use of one ground use of one additional ground sign for r sign on each separate street# each additional one hundred (100) feet I of frontage or fraction thereof. ` I I 1 i I + SIGN ORDINANCE REVISIONS Page 5 I Article 17 Proposed Revisions I State Standards (if applicable) Section D.2 I Ground signs over 10' in height New section on distance from a I ji&n: Distance: I residential property or zoning. I I I I IIluminated 500' Straight line I 1 k I Non-illuminated 100' Straight line k ' I I r Section D.4.b. I The effective area of a sign shall I be 150 square feet. I Central Business Districts (Size) I I r No sign shall have an effective area I I greater than four hundred (400) square I I feet. I I Section E.4. I No wind device may be displayed I I for than 30 consecutive days. New section on wind devices I No more than 3 permits for any one I I premise shall be issued in any one I I year. No person shall display one I I or more wind device signs on any I I premise without a permit. I I I Section G.3. I Delete section. All ground signs I State regulations permit off-premise t I mould be covered by other sections signs with effective areas of 672 f Signs on certain highways I I square feet and a maximum height of I Maximum effective area 250 square I 42 1/2 feet. Cut outs may be added Section permits on-premise signs { feet and a maximum height of 40' { not to exceed 20% of sign area or up to 672 sgaure feet in effective { along I-35 { 807 square feet. area and 60 feet in height along 1-35. I I I I I + r l E SIGN ORDINANCE REVISI014S Page 6 I Article 17 I Proposed Revisions I State Standards (if applicable) ~~1 I I - - - - - - - - - - - - - - Section G,3. I Portable or wind device itgns i 7 I must be removed within a0 days of Signs on certain highways i the date it becomes abandoned. I 3 i Replace section with new section I Ground or attached signs shall on abandoned signs I be removed within 90 days of the I I date of it becoming abandoned by removing the supporting structure I or painting out or covering the face or message of the sign 1 Section G.5 I No stake sign shall be larger than f 31 square feet and must be at least I Temporary and Political Signs: i 10 feet from the curb line. Signs which are uaed for or relate to I No more than one off-premise stake a particular event or purpose shall be I sign advertising the sale or lease removed by the owner of the premise on I of real property or one real estate which they are located after 10 (ten) I subdivision or development shall be I days of the date of the accomplishment f placed on any one premise of the purpose for which they are used I or the occurrence of the event which I I they refer or relate. _ ( I I Section N,3, I Within 60 days of the passage f Registration Requirements I of the ordinance registration I would be required of all I non-conforming signs. Registration of nonconforming signs I was required within 180 days of I The existing portable signs would the passage of Ordinance 85-206. 1 also be required to register and I I renew the permit annually In order I to maintain legal nonconforming I status. # ~ I I FD~ NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ARTICLE 17 OF APPENDIX B - ZONING OF THE CODE OF ORDINANCES RELATING TO SIGNS; PROHIBITING PORTABLE AND INFLATABLE SIGNS; AMENDING THE SIZE, HEIGHT, AND SPACING REGULATIONS FOR GROUND SIGNS; AMENDING THE REGULATIONS APPLICABLE TO ILLUMINATED SIGNS; PROVIDING FOR THE LICENSING OF PERSONS ERECTING SIGNS FOR COMPENSATION; PROVIDING FOR REGULATIONS FOR WIND DEVICE SIGNS] PROVIDING FOR THE REMOVAL 1 - -1 OF ABANDONED SIGNS; PROVIDING FOR REGULATIONS FOR STAKE SIGNS; AMENDING THE REGULATIONS APPLICABLE TO NONCONFORMING SIGNS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council appointed a Blue Ribbon Beautification Task Force for the purpose of studying, developing, and recommending actions to be taken to enhance the overall appearance of the City; and WHEREAS, in performance of its charge, the Task Force has made certain recommendations concerning the regulation of signs within the City of Denton; and WHEREAS, the City Council, after having received and considered the recommendation of the Task Force, has found and determined that the this ordinance is necessary to enhance the overall appearance of the City and protect the health, safety, and welfare of the community; TH3 COUNCIL OF THE CITY OF DENTON HERESY ORDAINS: SECTION That article 17 A. 2.(d) of Appendix 8 -Zoning is amended to read as follows: ("effective area" to be redefined) SECTION . That article 17 A. 2.(g) of Appendix B -Zoning j is amended to read as follows: I (g) Premise shall mean: (1) for any developed property, the area of real property which encompasses all the buildings, structures, appurtenances, and land held under common ownership and devoted to a common use. 4 i ti (2) for undeveloped property, the area of real property as shown on at plat approved in accordance with law and filed with the County Clerk's Office, or an unplatted trt of land and recorded in a the deed records of Denton County, Texas. gZS2 Qx That article 17 A. 2.(j) (1) of Appendix B - Zoning is amended to read as follows. Attached_eian means any sign attached to, on or supported by any part of a building (such as a wall, roof, window, canopy, covers usable awning, or marquee) which encloses or shall e. 'r Wall, roof, wind device, and projecting signs considered attached signs. SFCTION That article 17 A. 2.(j) of Appendix B -Zoning, providing for definitions of signs, is amended by adding the following definitions: k A andoned sign means any ground, portable, or attache sign which no longer serves its intended purpose because E the business, service, goods, or activity being advertised no longer exist, have changed, or are no longer available at that location. Abandoned signs shall not include ground signs lace and intended where the face portion of the sign is designed to be used for periodically changing the portion of the sign for rental purposes. Y,~nd device eian means any, flag, banker, pennant, streamer or similar sign made of cloth, canvas, plastic, or other flexible material, with or without a frame, that moves or is designed to move freely in the wind. aX9 oN That article 17 A. 2.(1) of Appendix B -Zoning ("Wind device"), is repealed. + That article 17 A. 4. (i) of Appendix B Zoning ("Frri°-=---Proopen per Shielding of lighted signs"), is amended to read ~ as follows: (i) Berta n i lumi±±'!ted signs. Signs which are illuminated from within or without and which: meter 5) ; (1) have a lighting intensity foot c ndleso measured with a xst ndard seventy-five (2) are illuminated in such a manner, to such intensity, or not properly shielded, so as to potentially impair or SIGNS/Page 2 I Ii 1 i 0A interfere with the vision of any driver of any motor vehicle upon a public streets or (3) have any type of intermittent illumination, including 1 flashing, fading, revolving or blinking lights, or any type of moving, travelling, or changing mr3sage by means of illumination, excluding temporary Christmas lights and lights used for time and temperature signs. SECTION That article 17 A. 4. (j) of Appendix B - Zoning ("Flashing, blinking, or traveling lights"), is amended to read as follows: (J) inflatable devices, Signs which are inflatable devices anchored to the ground, a building, or a structure. SECTION That article 17 A. 4. (d) of Appendix B - Zoning ("Prohibited Signs"), is amended to read as follvis: (d) Signs on Public Pr0RQrty. Any ground or attached sign located on, over, or within a public street, sidewalk, alley, i right-of-way, street lamp, utility pole, hydrant, bridge, building or structure, traffic or street sign or device or ; other public property. This provision shall not apply to projecting signs in central business districts as specifically permitted in this article or to wind device signs placed over ' a public street by or with the consent of the City to advertise annual community events for a temporary period of J time. SECTION That article 17 A. 4. of Appendix B - Zoning ("Prohibited Signs"), is amended by adding a new paragraph (k) to read as follows: (k) portable signs. Any portable sign, except a nonconforming portable sign as provides for in this article. SECTION V. That article 17 A. of Appendix B - Zoning is amended by adding a new paragraph 6 to read as follows: 6. Licensing. F (a) It shall be unlawful foi any person to erect, construct, place, locate, reconstruct, repair, replace, or service any sign for compensation, other than a stake sign, within the City, without first having obtained a license for such work from the Building Official as provided herein. The provisions SIGNS/Page 3 I 1 I i ti of the section requiring a license for such work shall not apply to an employee of a person holding a license under this section. (b) ay lPecrson making valid application for a license shall be J examinatiitsued ens for one year, upon passing a written g the %pplicantis general knowledge of the ! administered int accord nc& ewith The erules aandn shall be established by the Building official. Procedures (c) The Building official may revoke, upon notice to the licensee, any license grantewhereritristfound that the application made was knowingly false or that the licensee, after having determined by the Building official to have violated any provision of this ordinance, failed to correct the violation within fourteen (14) days after the date written notice of the violation was sent to the address of the licensee, as shown on the license. (d) Any person may appeal a denial, proposed revocation, or revocation of a license to the Board of Adjustment in + accordance with the rules applicable to decisions of the Building official, as provided for in Appendix B -Zoning. I SECTION That article 14. B. 4. of Appendix B-Zoning is amended to read as follows: a 4• Permit Fee If the plans and specifications for a sign set forth in any application for a permit conform to all of the requirements of this article and any other ordinance or law applicable thereto, the building official shall, upon payment of the applicable permit fee established by ordinance, issue the appropriate permit. UCU That article 14. B. 5. of Appendix B-Zoning is amended to read as follows: 5• IhaYation of P riniFe other than permits for wind device signs, every permit issued shall expire by limitation and be null and void if the work authorized by the permit is not commenced within 180 days from the date of such permit, or it the work authorized by the permit is suspended or abandoned, at any time after the work is commenced, for a period of go days. ~FSTZ4N ~ That article 14. C. of Appendix B - Zoning is SIGNS/Page 4 I fI I ~ i i amended to read as follows: C. PORTABLE SIGNS 1. It shall be unlawful for any person to erect, place, or locate any portable sign on any premise after , 1989. 2. Any portable sign lawfully located upon any premise on (day before effective date), shall be allowed to remain on that premise as a nonconforming sign if registered as provided for in this article. 3. A nonconforming portable sign shall not: (a) Be relocated on the premise for which it is registered. (b) Be moved to another premise so as to be visible from any public street. (c) If removed from any premise for any reason, b5i placed on the same or any other premise so as to be visible from any public street. 1. All lawful nonconforming portable signs shall at all times , be securely anchored so as to prevent overturning or unsafe movement, the sufficiency of such anchorage to be determined by the Building Official. + SEMjQN That article 17 D. 1. of Appendix B - Zoning is amended to read as follows: (a) TM. Roof, projecting, off-premise, and portabla signs are prohibited. (b) Height. No sign shall have a greater height than six (b) feet. I (c) No sign shall have an effective area greater than 50 square feet. ' (d) Setbacks. All ground signs shall maintain a minimum distance or setback from the curbline which is equal to or greater than one-half of the required front yard setback for the premise where the sign is located, and a minimum distance or setback of ten (10) feet from all perimeter property lines for the premise where the sign SIGNS/page 5 f ~ r in located. (e) lmexL only one ground sign shall be located on any one premise, except as follower (1) Any premise having frontage on more than one arterial or collector street may locate one on-premiss ground sign in the defined front yard of each &treat, provided that neither sign is located within that area that inoludes the overlapping front yards of both streets. (2) Any premise which has more than 500 feet of public street frontage on an arterial or collector street may make use of one additional sign for each additional 500 feet of frontage, or fraction thereof, (f) Materials for Ground lirna. All ground signs shall be constructed of stone, concrete, brick, routed wood planks or beams, or similar materials, The face or message portion of the sign may include plastic material if it does not encompass more than 50% of the effective area of the sign. SECTION That article 17 D. 2, and 3, of Appendi:t D - Zoning is amended to read as followst 2, riots. The following relations shall apply to signs in nonresidential toning distrguictst (a) Type, All types of signs, which are not otherwise noreulations of this prohibited permitted d with in the article# which nresidential districts. (b) r'ffactive Area and Height. No sign shall have an effective area greater than sixty (60) feet or a height greater than six (6) feet, except as follower . (1) Rootsigns provided may ein thismarticle as (2) A ground sign located on a premise which haj frontage upon U.S. Interstate Highway 35N, 35E, or 35W shall not have an effective area greater than two hundred and fifty (250) square feet 1 or a height greater than forty (40) feet. ~ (3) Aground sign located on a premise which has SIGNS/page 6 1 i I i i C frontage upon State Highway Loop 288 shall not have an effective area greater than one hundred and fifty (150) square feet or a height greater than thirty (30) feet. (1) Any premise permitted to have more than one on-premise ground sign by reason of having frontage on more than one arterial or collector street or more than 500 feat of public street frontage, shall be permitted one ground sign of a maximum height of fifteen (15) feet and in effective area of one hundred twenty 120) square feet, in lieu of any two permitted ground signs. (o) Sltwaka... All signs shall maintain a minimum distance or setback of 20 feet from the curbline and 10 feet from any perimeter property line of the premise upon which the sign is located. (d) fir. Only one on-premise ground sign shall ba located on any one premise, except as followst (1) Any remise which has frontage upon more than one arterial or collector streot, may locate one on-premise ground sign in the defined front yard of each arterial or collector street, provided that neither sign is located within that area that includes the overlapping front yards of both streets. (2) Any premise which has more than 500 feet of public street frontage on an arterial or collector strset may make use of one additional on-premise ground sign for each additional 500 feet of frontage, or traction thereof. J (o) Spacing ReQuirements. (1) Off-pramime ■ina. No off-premise ground sign shall be located within 1500 feet of another off-premise ground sign on the same side of a public street. The measurement shall be between the two points on the curblines which are closest to the respective signs, along and parallel to the 1 curbline, and across any intervening street intersections. SIGNS/Page 7 I i I ~ 1 r ~ (2) B gnl.nnd Residential ftsuct,_ urea. No sign over 10 feet in height, which is not located on the same premise where there is a residential structure, shall be located within the following distances from a premise mead for residential purposes: illuminated 500 feet Non-illuminated 100 feet The measurement shall be made in s straight line from the at ground nearest to the tnearesto property structure containing an existing residential structure. (f) Materials for Ground Signs, All ground signs, other than freeway signs, shall be constructed of stone, concrete, brick, routed wood planks or beams, metal, or similar materials. The face or message portion of the sign may include plastic material if it does f not encompass more than 501 of the effective area of the sign. 3. Planned pevelopmant Districts. The regulations for signs located in planned development toning districts shall be contained in the ordinance or concept or detailed plan approved for the district, except that no off-premise signs shall be permitted. Should the regulations for signs be omitted from an ordinance or concept or detailed plan for the district, the sign regulations that would be applicable to the most restrictive comparable zoning district olassifioation, based upon the land uses permitted therein, as determined by the Executive Director of the Department of Planning and Community Development, shall be applied to the district, or part thereof, for which the regulations were omitted. (SECTION . That article 17 D.4.(b) of Appendix B-Zoning ("Central Business Districts"), is amended to read as followss (b) Size, No ground sign shall have an effective area greater than sixty (60) square feat or a height greater e (6) SECTION_ That article 17 E. ("Regulation of Attached 1 Signs") of Appendix B-Zonir-y is amended by adding a new paragraph 4. to reed as followsi 4. Wind Davie Signs. The following regulations shall apply to all wind device signet except wind device signs which are II SIGNS/page 8 3 I 1 I S JI i f 1 A !4 , national or state flagst (a) No person shall display one or more wind device signs on any one premise without a permit. (b) Permits shall be valid for thirty (30) consecutive days. No more than three (3) permits for any one premise shall be issued in any one calendar year. =ION That article 17 F 2. ("Removal of Unlawful Signs") of Appendix B - Zoning is amended to read es followst 2. Removalt Appeals. If the person ordered to remove a sign fails to do so within the time specified, the building Official may, after twenty (20) days of the data of delivery or mailing of the notice and order, remove or cause said sign to be removedi provided, however, that any person aggrieved by said order may file an appeal with the Board of Adjustment in accordance with thou provisions applicable for other appeals from decisions of the Building official. In case such appeal is timely tiled, the procedures applicable to other appeals shall be followed and the order of the Building official may be stayed in accordance thcorsof, pending the final determination of the Board of Adjustment. SECTION . That article 17 F ("Removal of Unlawful Signs") of Appendix B - Zoning is amended by adding a new paragraph to read as followst 69 Summary Removal of Hazardous Signs. Notvithstanding any other provision of this section F, the Building Official may summarily remove any unlawful sign which, because of its location or condition clearly constitutes an immediate hazard or danger to the public, as provided in this paragraph. Prior to removing the sign, the Building official shall make a reasonable attempt to locate the owner of the hazardous sign or person responsible for its pplacement to give written notice of the violation, the act~ton necessary to correct the violation, and the time period in which the correction must be made. The notice shall be delivered to the owner of the sign, the owner of the premise, or the person responsible for the signs placement, if located, of if not, the notice shall be affixed to the sign or other prominent place on the promise f likely to come to the attention of the owner of the sign or premise. Thereafter, the Building official may remove the sign if no corrective action is taken in the time specified. SIGNS/Page 9 I F t i T f I L That article 17 a. 1. (b) (1) of Appendix S Zoning i~ samended to read as followsI ward (1) Draw an imaginary vertical line extending upward from the closest point on the curbline of th4 public street to which the premise has accesst G. 2 That pendixhB Z through areoamendedlttread as 3, 40 5j 6, 7, of Apppp followat The owner of the premiss on which there is located d any abaan~doned sign shalli I~ (a) if it is a portable or wind device oigr., remove the sign within thirtyy days of the date it becomes abandoned so that it is not visible from any public right-of-way. j round or attached sign, either (b) If the sign is a g structure so as not removo the sign and supporting to be visible from any public right-of-wly, or paint j out, cover, or remove the face or message portion rtion of the sign so as to leave the sign and su porting structure neat and unobtrusive in appoarancep ninety days of the date it becomes abandoned. I All signs shall be I 3, clenranca trcm Ste feet, measured locatod n minimum distance t , measured vertically, from horizontally, and eight as 6) ized in any overhead electrical conductors ~6~h voare lts nerThe term excess of seven hundred and fitleotricel line, either bare "overhead conductors means any or insulated, installed above the ground. 1, atwk BIMA. (a) No stakesign hall be larger than thirty two (32) effective area, square ublio within ctend (10)hifeet y of any (b) stake median shall be street curbline. (c) Any stake sign advertising the sale or lease of real estate, a garage sacs, a candidate other temporary event or I ~ voted upon at an election, or happening, shall be removed by the owner of the I ~ SIGNS/Papa 10 I r~ V promise if placed thereon by the owner, or if placed thereon by other than the ornor, by the parson responsible for the placement of the sign, within ten (10) days after the date of the occurrence of the event advertised. (d) No more than one off-premise stake sign advertising the sale or lease of one piece of real property or i one real estate subdivision or development shall be placed on any one premise. 5. Sign Maintenance, All signs and supporting structures shall. be kept in good repair condition and 1 appearance, All faces, bolts, supporting frames and fastenings shall be free from deterioration, insect or rodent infestation, rot or loosening. Painted signs which are faded or obscured because of weather or time shall be repainted or redone or painted over so as to be neat in appearance. (6) Flags. (a) State or National, Two (2) flagpoles used to display only a national or state flag shall be permitted on each promise, for which the number, spacing, height, and size requirements applicable to ground signs shall not apply, but to which the setback requirements shall apply. i ~ (b) Spgorato. One (1) flagpole used to display only a flag of a registered corporate logo shall be permitted on cny business promise owned or controlled by the corporation for which the number and spacing requirements applicable to ground signs shall not apply. The corporate flag shell have a maximum effective area of fifty (50) square feet and a maximum height of thirty (30) feat, unless it is located on the same promise whore there are one or more flagpoles used to display only a national or state flag. SECTION That article 17 0. 7. of Appendix B - Zoning ("Identification of Signs"), is repealed. f SECTION That article 17 H. 2. (a) of Appendix B-Zoning is amended to read as foilowai ~ i (a) was in existence and lawfully located on any promise on SIGNS/Page 11 4 I the effective data of this article or on the effective date of any ordinance amending this article. SECTION That article 17 H. 3. of Appendix B-Zoning is amended to read as followst 3. Registzation Required. (a) around and Attached signs, Within sixty (60) days of the date any ground or attached sign becomes a nonconforming sign as a result of the enactment of this article, or any amendment of this article, the owner of the nonconforming sign shall file with the Building official, on forms provided for that purpose, a notice that the owner has a sign which qualities as a nonconforming sign, as defined herein.. Such notice shall contain the name of the owner of the sign, the location, description, type of sign, date of ersotion, and any other information required by the Building official to determine if the sign is legally nonconforming. If the Building official is satisfied, based upon the information supplied, that the sign is a lawfully nonconforming sign, he shall approve such notice, supply the owner with an approved copy, and file the notice as a record with his office. I (b) Portable Bigna. (1) Within sixty days (60) of the date any portable sign becomes a nonconforming sign as provided for in this article the owner of the sign shall make application to the Building official, on forms provided for that purpose, for a registration tag for the nonconforming portable sign. The application shall be accompanied by the payment of the applicable fee and shall contain the name of the owner of the sign, the exact location of the sign, the date of placement, and any other information required by the Building official. (2) If the Building official is satisfied, based upon the information supplied, that the portable sAgn is a lawfully nonconforming sign, he shall issue a registration tag to the owner of the portable sign, which the owner shall within ten (10) days of issuanoe affix in a conspicuous place to the corresponding portable sign registered. It shall be unlawful for any person to maintain any portable sign on any premise without having a valid registration tag affixed thereto as required herein. (3) Any owner who removes or causes the removal of any SIGNS/Page 12 I I, I i I i I II registered nonconforming sign from any premise, shall, within ten days of removal, report the removal to the Building official. The Building Official shall invalidate any registration tag for a nonconforming portable sign for which the owner reports its removal as provided for herein. 4. ka lgm~Qn, Any sign ~ihich does not conform to the regulations of this article or uny amendment thereafter made to this article and is not properly registered in the time provided herein as a legally nonconforming sign as provided for herein, shall be presumed not to be a legally nonconforming signs provided, however, that the owner of any ground or attached sign that is determined not to comply with the provisions of the article, as emended, may, at any time, prosent evidence to the Building Official that the sign is a legally nonconforming sign as defined herein, and the Building Official shall, if satisfied that the ground or attached sign is a legally nonconforming sign based on the evidence presented, allow the sign to be registered as a legally nonconforming sign. j SECTION That the provisions of this ordinance are separable, and the invalidity of any phrase, clause or part of this ordinance shall not affect the validity or effectiveness of the remainder of the ordinance. 8=10HThat any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2000.00. Each shall constitute a sethat a provision of parate and distinct h offensenanc• is violated eECTI021.S That any provi:ion of the Code of Ordinances rspsa)ed or amend_ed by this ordinance is expressly saved and shall remain in effect and be applied to any offense committed under such provision repealed or amended prior to the effective data of this ordinance. SECTION That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASGFD AND APPROVED this the day of , 14BB. I SIGNS/Page 13 I I s t M 1 i RAY STEPHENS, MAYOR A'I"TEST i JENNIFER WALTERS, CITY SECRETARY ~l APPROVED AS TO LEOAL FORMt DEBRA ADAMI DRAYOVITCM, CITY ATTORNEY BY: I ' I SIGNS/Paq• 14 r' ZL= IJEII= El~ OZEI= 1 a j i r UL L.L-L.L-LJ= i s 4 1 n r i RF.SOLUrTION IN APPRECIATION OF i "DAVID ELLISON" in 1980 David Ellison come to work Urban Planner in for the City o WHEREAS, and was was 1984 , Denton as a CCG Urban Fellow, o March of 19819 became a Seniositionneofi Assistant to the City appointed to his present p Manager in May, 1987; 'nd WHEREAS, David's skills and personality made him an asset to the City of Denton from the very start; and WHEREAS. David is known as much for his compassion as for his have served him well in Denton and will competence, both of which c j continue to do so in Mankato, Minnesota; and fI WHEREAS, David's work as Actiltg Executive Director for i apital Planning, Chairman of the Development Review "ommitteep Cand his I work with the ggoNeighborhood Identity ProgrL,1 Improvement Pofamtlae City; fso~r examples of the excellent work David hqs done 1 ~ WHEREAS, David will he sorely missed by the city Council, his i co-workers, and the citizens of Denton; NOW, THEREFORE, BE IT RESOLVED 13Y THE COUNCIL OF THE CITY OF ' DENTON, TEXAS: appreciation of the City Council be ' That the ainr9rt and warm 4 i,•~anent manner by formally ethis yRes lut on fuponl the of iic lal minutes of the City i spreading Council and forwarding to him a true copy hereof. PASSED AND APPROVED this the 17th day of January, 1989. MAYOR PRO-TEM ~ MAYOR s R ~A AT'~R 1 COUNCIL MEMBER COLMCIL MEMBER i 1 l A R 1 TOW E -Lb 0`7 6 130B GORTON COUNCIL MFIIBER COUNCIL MEMBER L'INW-R c.`A'bAR S COUNCIL MEMBER ATTEST: i I a APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY { BY: i i I 1 x ry ,LIZ I i I vir 1 mom N++J)4-11 11-1,131111 Willi 1111 1 J v k , , CITY of DEWON,TEXAS MUNICIPAL BUILOINO / DEN70N, TEXAS 1820f /TELEPHONE (817)388.8307 Off c@ of the Oty Menaper M E M O R A N D U M T0: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary DATE: January 13, 1989 f SUBJECT: Back-up for Agenda Stem 02 - 7100 Mr. Van called this week and asked to be placed on the Council agenda to discuss a possible raise in the basic rate for taxicab service. 1 I V J J 16r W e a r 2727C/2 i k I f IE i i r 1 i I I { w GIRL SCOUTS Cross TimOers Clrl Scout Council 6000 West University Dl TX 76201 IB171382 6961 January 10, 1988 Major Ray Stephens 215 E. McKinney Denton, Texas 76201 Dear Major Stephens: This year, as many years in the past, Girl Scouts of Cross Timbers Girl Scout Council will sell delicious Girl Scout Cookies in Denton. Kindly regard this letter as a petition to the City Council to hang a banner at a designated area in the city to promote our Cookie Sale. If we could display our banner from January 23 through February 23 (weather purmitting), we would be most grateful. Thank you very much for your benevolence. 5i cereply yours, iselle Kroebel Public Relations dad Fund Development GK: emrs LLANIC gervviy Dew )0, Go,s r l Conko MCUiey,n, A V1,i11d Al, All n rid Wso Ct+unIles r r r l ' 3 1 1 i l I j v iII I i I ~I I r IRAN I i 1 F ORDINANCE NO. 89 AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 19890 AND APPROVING AND AUTHORIZING INSTR MENjS ANn PR(VMF Q6gs g N THEREIg THE STATE OF TEXAS ; COUNTY OF DENTON ; CITY OF DENTON ; WHEREAS, the Certificate of Obligation Act of 1971, as amended and codified (the "Act,l) permits the City to issue and sell for cash the Certificates of Obligation hereinafter authorized; and WHEREAS, the City has duly caused notice of its intention to issue the Certificates of obligation hereinafter authorized to be published at the times and in the manner required by the Act and no petition has been filed protesting the issuance thereof. THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS THATr Section 1. AMOUNT AND PURPOSE OF THE CERTIFICATES. The certificate or certificates of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate principal amount of $1,155,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITYOS CONTRACTUAL OBLIGA- TIONS TO BE INCURRED (1) PURSUANT TO CONTRACTS FOR THE CON- STRUCTION OF IMPROVEMENTS TO THE MUNICIPAL BUILDING (CITY HALL) AND THE PURCHASE OF MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (2) PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF IMPROVEMENTS TO THE CITY'S CIVIC CENTER AND THE PURCHASE OF MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (3) PURSUANT TO CONTRACTS FOR THE PURCHASE OF THE FOLLOWING EQUIPMENT AND MACHINERYt A TRACK LOADER, A MOTOR GRADER, SOLID WASTE DISPOSAL EQUIPMENT, POLICE VEHICLES, AMBULANCES, A REFUSE TRUCK, AND A TREE SPADEI AND ALSO FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGA- TIONS FOR PROFESSIONAL SERVICES OF ENGINEERING, ATTORNEYS, AND FINANCIAL ADVISORS IN CONNECTION WITH SUCH IMPROVEMENTS, PURCHASES, AND CERTIFICATES OF OBLIGATION. Section 2. DESIGNATION OF THE CERTIFICATES. Each cert- ificate issued pursuant to this ordinance shall be designated; "CITY OF DENTON CERTIFICATE OF OBLIGATION, SERIES 198911, and initially there shall be issued, sold, and delivered hereunder a single fully registered certificate, without interest cou- pons payable in installments of principal (the "Initial Certificate but the initial Certificate may be assigned and 1 I transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered certificates, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multi- ple of $5,000, all in the manner hereinafter provided. The term "Certificates" as used in this Ordinance shall mean and include collectively the Initial Certificate and all substitute certificates exchanged therefor, as well as all other substi- tute certificates and replacement certificates issued pursuant hereto, and the term "Certificates" shall mean any of the Certificates. Section 7. INITIAL DATE, DENOMINATION, NUMBER, MATURI- TIES, INITIAL REGISTERED OWNER] AND CHARACTERISTICS OF THE INITIAL CERTIFICATE. (a) The Initial Certificate is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Certificate, without interest coupons, dated January 1, 19891 in the denomination and aggregate principal amount of $1,155,000, numbered R-l, payable in annual installments of principal to the initial registered owner thereof, to-wits or to the registered assignee or assignees of said Certificate or any portion or portions thereof (in each case, the "regis- tered owner"), with the annual installments of principal of the Initial Certificate to be payable on the dates, respectively, and in the principal amounts, rospectively, stated in the FORM OF INITIAL CERTIFICATE set forth in this Ordinance. (b) The Initial Certificate (i) may be assigned and transferred, (ii) may be converted and exchanged for other J Certificates, (iii) shall have the characteristics, and (iv) I shall be signed and sealed, and the principal of and interest on the Initial Certificate shall be payable, all as provided, and in the manner required or indicated, in the FORM OF INITIAL CERTIFICATE set forth in this Ordinance. Section 4. INTEREST. The unpaid principal balance of the initial Certificate shall bear interest from the date of the initial Certificate to the respective scheduled due dates of the installments of principal of the initial Certificate, and said interest shall be payable, all in the manner provided and at the rates and on the dates stated in the FORM OF INITIAL CERTIFICATE set forth in this Ordinance. 2 1 1 I i f r a Section 5. FORM OF INITIAL CERTIFICATE. The form of the Initial certificate, including the form of Registration Certif- icate of the Comptroller of Public Accounts of the State of Texas to be endorsed on the Initial Certificate, shall be substantially as follows; FORM OF INITIAL CERTIFICATE NO. R-1 $1,155,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON CERTIFICATE OF OBLIGATION ' --1 SERIES 1989 THE CITY OF DENTON, in Denton County, Texas (the "Issu- er"), being a political subdivision of the State of Texas, hereby promises to pay to ~I I or to the registered assignee or assignees of this Certificate or any portion or portions hereof (in each case, the "regis- tered owner") the aggregate principal amount of $1,155,000 k (ONE MILLION ONE HUNDRED FIFTY FIVE THOUSAND DOLLARS) in annual installments of prinoipal due and payable on JULY 1 in each of the years, and n tho respective principal amounts, as set forth in tho following scheduler PRINCIPAL PRINCIPAL Y~,a$ __MQUNT AMOUNT 1990 $2450000 1995 $500000 1991 2700000 1996 50,000 1992 290,000 1997 50,000 1993 60,000 1998 50,000 1994 50,000 1999 50,000 and to pay interest, from the date of this Certificate herein- after stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as followst I i 3 I ~ I ~1 t per annum on the above installment due in 1990 ~t per annum on the above installment due in 1991 1 per annum on the above installment due in 1992 ^i per annum on the above installment due in 1993 i per annum on the above installment due in 1994 1 per annum on the above installment due in 1995 per annum on the above installment due in 1996 = per annum on the above installment due in 1997 4 per annum on the above installment due in 1998 t per annum on the above installment due in 1999 with said interest being payable on JANUARY 11 1990, and semi- annually on each JULY 1 and JANUARY 1 thereafter while this Certificate or any portion hereof is outstanding and unpaid. THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Certificate are payable in lawful money of the United States of America, without exchange or collection charges. The install- ments of principal and the interest on this Certificate are payable to the registered owner hereof through the services of NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Certificate. Payment of all principal of and interest on this Certificate shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal and/or interest payment date by check dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the issuer required by the ordinance authorizing the issuance of this Certificate (the "Certificate ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter providedt and such check shall be sent by the Paying Agent/Registrar by a United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared J on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The Issuer cove- nants with the registered owner of this Certificate that on or before each principal and/or interest payment date for this Certificate it will make available to the Paying Agent/Regis- trar, frog the "Interest and Sinking Fund" created by the Certificate Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Certificate, when due. IF THE DATE for the payment of the principal of or inter- est on this Certificate shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by { law or executive order to close, then the date for such payment I 4 ~ If I ~ J r shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to closet and payment on such date shall have tho same force and effect as if made on the original date payment was due. THIS CERTIFICATE has been authorized in accordance with the Constitution and laws of the State of Texas FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGA- TIONS TO BE INCURRED (1) PURSUANT TO CONTRACTS FOR THE CON- STRUCTION OF IMPROVEMENTS TO THE MUNICIPAL BUILDING (CITY HALL) AND THE PURCHASE OF MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (2) PURSUANT TO CONTRACTS FCR THE CONSTRUCTION OF IMPROVEMENTS TO THE CITY'S CIVIC CENTER ND THE PURCHASE OF MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (3) PURSUANT TO CONTRACTS FOR THE PURCHASE OF THE FOLLOWING EQUIPMENT AND MACHINERY: A TRACK LOADER, A MOTOR GRADER, SOLID WASTE DISPOSAL EQUIPMENT, POLICY VEHICLES, AMBULANCES, A REFUSE TRUCK, AND A TREE SPADE; AND ALSO FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OF ENGINEERING, ATTOR- NEYS, AND FINANCIAL ADVISORS IN CONNECTION WITH SUCH IMPROVE- MENTS, PURCHASES, AND CERTIFICATES OF OBLIGATION. THIS CERTIFICATE, to the extent of the unpaid principal balance hereof, or any unpaid portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration ; Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Certificates, upon the terms and conditions set forth in the Certificate Ordinance, Among other requirements for such transfer, this Certificate must be presented and surrendered to the Paying Agent/Registrar for cancellation, together with proper instruments of assign- ment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Certificate, or any portion or i portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Certificate ` or any such portion or portions hereof is or are to be trans- ferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Certificate or any such portion or portions hereof by the initial registered owner hereof. A new certificate or certificates payable to such assignee or assignees (which then will be the new registered owner or owners of such now Certificate or Certificates) or to f a the initial registered owner as to any portion of this Certifi- cats which is not being assigned and transferred by the initial i j i j 5 F E r" I I ICI registered owner, shall be delivered by the Paying Agent/Regis- trar in conversion of and exchange for this Certificate or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Certificate or any portion hereof. The registered owner of this Certificate nhall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Certificate to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. AS PROVIDED above and in the Certificate Ordinance, this Certificate, to the extent of the unpaid principal balance hereof, may be converted into and exchanged for a like aggre- gate principal amcunt of fully registered certificates, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered oanar as to any portion of this Certificate which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute certificate issued in exchange for any portion of this Certificate shall have a single stated principal maturity date), upon currander of this Certificate to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Certificate Ordinance. If this certificate or any portion hereof is assigned and transferred or converted each certifi- cate issued in exchange for any portion hereof shall have a single stated principal naturity date corresponding to the due date of the installment of principal of this Certificate or portion hereof for which the substitute certificate is being exchanged, and shall bear interest at the rats applicable to and borne by such installment of principal ov portion thereof. No such certificate shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE CERTIFICATE ORDINANCE, THIS CERTIFICATE IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFEHRLD OR CONVERTED ONCE ONLY, and to one or more assignors, but the certificates issued and de- livered in exchange for this Certificate or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Certificate Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary foes and char as for transferring, converting, and exchanging this Certificate or any portion thereof, but the one requostitig such transfer, conversion, and exchange shall pay any taxes or f governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any i 6 i I ' A , I I I conversion, or exchange during the period such assignment, commencing with the close ofbbusiness o on thany next rtollowing ending with the opening o principal or interest payment date. IN THE EVENT any Paying Agent/Registrar for this Certiti- cats is changed by the issuer, resigns, or otherwise ceases to act as such, the issuer has coappoinda in competethe ificate and legally ordinance that it promptly will and promptly will cause written qualified substitute therefor, a notice thereof to be mailed to the registered owner of this Certificate. his IT IS EREBY H has validly aauthorizod,teissued# Land Certificate has has been n duly duly a ired or thi delivered; that all acts, exi to and nbe doand ne precedent to or in proper to be performed) , and delivery of this Certificate the authorization, issuance, have been performed, existed, and bnobligationd of the t law; that this Certificate is a general issuer, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interost comes duo and such principal matures, have been levied red to be levied against all taxable property in the ®nt, and orde Issuer, and have been pledged irrevocably for such paYm within the limit prescribed by laws and that, together with other parity obligations, this Certificate additionally payable from and secured by certain surplus ri ed by the issuer from exceed $10,000 in aggregate amount) ,s Utility uer f system the ownership and oporation of the City sanitary (consisting of the City's combined wate owor system), all to sewer system, and electric light and p provided in the Certificate ordinance issue, in accordance THE ISSUER has reserved the right to with law, and in accordance with the certificate ordinance, enter in contrac oahyablen froted ad valorem itaxesnand/or revenues oft the City ~s Utility system, on a parity with, or with respect to said J revenues, superior in lion to, this Certificate. BY BECOMING the registered acknowledges ner of this or itermsesndhe provisions owner thereby provisions of the Certificate acknowledges thatotheoC r ificatey such terms and provisions, of the he bgle for overning sbodyion in the ordi officialo min test' and recorecordsrded ofavaila f issuer, and agrees that the terms and provisions of this 7 I 1 3 i ~ Certificate and the Certificate ordinance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Certificate to be signed with the manual signature of the Mayor of the Issuer and countersigned with the manual signature of the City Secretary of the Issuer, has caused the official seal of the Issuer to be duly impressed on this Certificate, and has caused this Certificate to be dated JANUARY 10 1989. J City Secretary, Ma or + City of Denton, Texas City of Denton, Texas (CITY SEAL) FORM OF REGISTRATION CERTIFICATE Ott, THE COMPTROLLER OF PUBLIC ACC,,OUHTQ: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO, I hereby certify that this Certificate has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Certificate has been registered by the Comptroller of Public Accounts of the, state of Texas. I Witness my signature and seal this 1 comptroller o Public Accounts of the State of Texas (COMPTROLLEROS SEAL) Section 6, ADDITIONAL CHARACTERISTICS OF THE CERTIFI- CATES, Registration and Transfer, (a) The Issuer shall keep or cause to be kept at the principal corporate trust office of NCNB TEXAS NATIONAL SANK, FORT WORTH, TEXAS (the "Paying Agent/Registrar") books or records of the registration and transfer of the Certificates (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records And make such transfers and registrations under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe) and the Paying Agent/Registrar shall make such 4 transfers and registrations as heroin provided. The Paying Agent/Registrar shall obtain and record in the Registration I Books the address of the registered owner of each Certificate i 8 I i I to which payments with respect to the Certificates shall be mailed, as herein providedr but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall. keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Certificate may be transferred in the Registration Books only upon presentation and surrender of such Certificate to the Paying Agent/Registrar for transfer of 1 registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of Hi natures satisfactory to the Paying Agent/Registrar, (i) evidencing the assignment of the Certificate, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Certificate or any ouch portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Certificate or any portion i thereof, a new substitute Certificate or Certificates shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Cartificate, to the extent of the unpaid principal balance thereof, may be assigned and transferred by i the initial registered owner thereof once only, and to one or more assignees designated in writing by the initial registered 1 owner thereof. All Certificates issued and delivered in conversion of and exchange for the initial Certificate shall be in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Certificate shall have a single stated princi- pal maturity date), shall be in the form prescribed in the FORM OF SUBSTITUTE CERTIFICATE set forth in this ordinance, and shall have the characteristics, and may be assigned, trans- ferred, and converted as hereinafter provided. if the initial Certificate or any portion thereof is assigned and transferred or converted the Initial Certificate must be surrendered to the Paying Agent/Registrar for cancellation, and each Certificate issued in exchange for any portion of the Initial Certificate shall have a single stated principal maturity date, and shall not be payable in installments) and each such Certificate shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the i substitute Certificate is being exchanged) and each such 3 Certificate shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. if only a portion of the initial Certificate is assigned and transferred, there I 9 i' A. S shall be delivered to and registered in the name of the initial registered owner substitute Certificates in exchange for the unassigned balance of the initial Certificate in the same manner as if the initial registered owner were the assignee thereof. If any Certificate or portion thereof other than the Initial Certificate is assigned and transferred or converted each Certificate issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Certificate for which it is exchanged. A form of assignment shall be printed or endorsed on each Certificate, excepting the Initial Certificate, which shall be executed by the registered owner or its duly authorized attorney or repre- sentative to evidence an assignment thereof. Upon surrender of any Certificates or any portion or portions thereof for trans- fer of registration, an authorized representative of the Paying Agent/Registrar shall make such transfer in the Registration Books, and shall deliver a now fully registered substitute Certificate or Certificates, having the characteristics herein described, payable to such assignee or assignees (which then will be the registered owner or owners of such new Certificate or Certificates), or to the previous registered owner in case f only a portion of a Certificate is being assigned and trans- ferred, all in conversion of and exchange for said assigned Certificate or Certificates or any portion or portions thereof, in the same form and manner, and with the same effect, as provided in Section 6(d), below, for the conversion and ex- change of Certificates by any registered owner of a Certifi- Cate. The issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such transfer and delivery of a substitute Certificate or Certificates, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of any Certificate or any portion thereof during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date. (b) Ownership of Certificateq. The entity in whose name any Certificate shall be registered in the Registration Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Certificate shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary) and payment of, or on account of, the principal of, premium, if any, and interest on any such Certificate shall be i made only to such registered owner, All such payments shall be valid and effectual to satisfy and discharge the liability upon such Certificate to the extent of the sum or sums so paid. 10 r' (c) Pa ent of Certificates and Interest. The Issuer hereby further appointR the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Certificates, and to act as its agent to convert and exchange or replace Certificates, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to the Certificates, and of all conversions and exchanges of Certificates, and all replacements of Certificates, as provided in this ordinance. (d) Conversion and Exchange or Replacements Authenti- cation. Each Certificate issued and delivered pursuant to this Ordinance, to the extent of the unpaid principal balance or principal amount thereof, may, upon surrender of such Certifi- cate at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or represen- tatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the registered owner or such assignee or assignees, as appropriate, be con- verted into and exchanged for fully registered certificates, without interest coupons, in the form prescribed in the FORM OF SUBSTITUTE CERTIFICATE set forth in this Ordinance, in the denomination of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Certificate shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid principal balance or principal amount of any Certificate or Certificates so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the initial Certificate is assigned and transferred or converted each substitute Certificate issued in exchange for any portion of the Initial Certificate shall have a single stated principal maturity data, and shall not be payable in installmentst and each such Certificate shall have a principal maturity date corresponding to the due date of the installment of pprincipal or portion thereof for which the substitute Certificate is being exchanged; and each such Certificate shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If any Certificate or portion thereof (other than the initial Certificate) is as- ~I signed and transferred or converted, each Certificate issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Certificate for which it is being exchanged. Each substitute Certificate shall bear a 16tter and/or number to distinguish it from each other I I 11 I Y Certificate. The Paying Agent/Registrar shall convert and exchange or replace Certificates as provided herein, and each fully registered certificate delivered in conversion of and exchange for or replacement of any Certificate or portion thereof as permitted or required by any provision of this ordinance shall constitute one of the Certificates for all purposes of this Ordinance, and may again be converted and exchanged or replaced. It is specifically provided that any Certificate authenticated in conversion of and exchange for or replacement of another Certificate on or prior to the first scheduled Record Data for the Initial Certificate shall bear interest from the date of the Initial Certificate, but each substitute certificate so authenticated after such first 1 scheduled Record Date shall bear interest from the interest payment date next preceding the date on which such substitute Certificate was so authenticated, unless such Certificate is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment dates provided, however, that if at the time of delivery of any substitute Certificate the interest on the Certificate for which it is being exchanged is due but has not been paid, then such Certificate shall bear interest from the date to which such interest has been paid in full. THE INITIAL CERTIFICATE issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent/-- Registrar, but on each substitute Certificate issued in conver- sion of and exchange for or replacement of any Certificate or Certificates issued under this ordinance there shall be printed a certificate, in the form substantially as follows3 ' "PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Certificate has been issued under the provisions of the Certificate ordinance described on the face of this Certificate) and that this Certificate has been issued in conversion of and exchange for or replacement of a certificate, certificates, or a portion of a certificate or certificates of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS 9 Paying Agent/Registrar ' I Dated By Authorized Rapresentat ve11 12 I wY r i An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Certificate, date and manually sign the above Certificate, and no such certificate shall be deemed to be issued or outstanding unless such Certif- icate is so executed. The Paying Agent/Registrar promptly shall cancel all Certificates surrendered for conversion and exchange or replacement. No additional ordinances, orders, of resolutions need be passed or adopted by the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any certif- icate or portion thereof, an the Paying ing and gdelivogy tofrtshall provide for the printing, execution, substitute Certificates in the manner qproscribed herein, paper said Certificates shall be of typ compositio printed on with lithographPursuant 88toaVernonasbAnn. Tax. Civ ~mSt. Art. ! and strength. 717k-6, and particularly Section 6 thereat, the duty o conver- sion and exchange or replacement of Certificates as and, upon is hereby imposed upon the Paying Agent/Reistrarr, and, tin the execution of the converted and exchanged or replaced tion Certificate, Cortilicate shall be valid, incontestable, and enforceable in the same approved by manner and lwith y was the same effect as issued pursuant too wh which the4Attorney General, and registered by the Comp- troller of Public Accounts. The issuer lfle8landy the Paying charges for Agent/Registrar's standard or exchanging any Certificate or any transferrferringng$ , converting, , such transfer, portion thereof, but the one requesting aaxes or governmental conversion, and exchange shall pay charges required to be paid with respect thereto as a condition con and precedent to the exercis of ouch Agent/Regi trar vshall not be vrequired to exchange. The Paying ing make any such conversion ment of on and exchanthelpe iod commencing icates or any portion thereof (i) during with with the aclose of business business on othenn next followings principal or the opening ent data, or, (ii) with respect to any Certificate interest paym portion thereof l redemption prior to matur prior to itsredemptindate. within 46 dayy prior w (a) in General. All Certificates issued ;n conversion and exchange or replacement of any other Certificate or wiportion thout + thereof, (1) shall be issued in fully registered form, + interest coupons, with the princi tc the and isterodt ownerson i be Certificates to be payable only reg thereof, (ii) may be transferred and assigned, (iii) mashey y have converted and exchangev for alother l ba Csigned sand ss (ealedI and (vi) the characteristics, ( ) the principal of and interest on the Certificates shall be E k payable, all as provided, and in the manner required or indi- cated, in the FORM OF SUBSTITUTE CERTIFICATE set forth in this Ordin.,ice. (f) payment of Fees and Charges. The Issuer hereby covenants with the registered owners of the Certificates that it will (i) pay the standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Certificates, when due, and (ii) pay the fees and charges of the Paying `f Agent/Registrar for services with resprct to the transfer of registration of Certificates, and with respect to the conver- t sion and exchange of certificates solely to the extent above provided in this Ordinance. (g) Substitute Paying Agent/Registrar. The Issuer covenants with the registered owners of the Certificates that at all times while the Certificates are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Certifi- cates under this Ordinance, and that the Paying Agent/Registrar will be one entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 110 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise ceaae to act as such, the Issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Regis- tration Books (or a copy thereof), along with all other perti- nent books and records relating to the Certificates, to the new Paying Agent/Registrar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Certificates, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and perform- ing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a car- tified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. i i 14 Section 7. FORM OF SUBSTITUTE CERTIFICATES. The form of all Certificates issued in conversion and exchange or replace- ment of any other Certificate or portion thereof, including the form of Paying Agent/Registrar's Certificate to be printed on each of such Certificates, and the Form of Assignment to be printed on each of the certificates, shat be, r variatively, substantially as follows, with such appropriate omissions, or insertions as are permitted or required by this ordinance. FORM of SUB~TL~STE CERTIFICATE NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE { COUNTY OF DENTON CITY OF DENTON CERIIFICATE OF OBLIGATION S 1989 INTER__ EST ATE M,T0U= DATE Q' j 1 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a a political subdivision of the State of Texas, hereby promises to pay to / i or to the reg steced ass gnee hereof (e thor be ng here natter called the "registered owner") the principal amount of interest thereon from JANUARY 1, 1989, to the and to pay maturity date specified above, at the ietablotona JANUARYper 1um 1990, specified abovei with onteachtJULYbeing I and JANUARY 1 thereafter, except and semiannually except that if the date of authentication of this Certificate is later than DECEMBER 15, 1989, suprdate incinext pr amount shall the bear interest from the interest payment ceding date of fter anyuR cord Date (hereinafter defined) but teoe or before a the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Certificate shall be paid to the registered owner hereof upon at maturit prehesentationprincipalancorporated NCNBeTEXAS NATIONALt 1 I i 15 t j I 1 1 w„ 5 BANK, FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Certificate. The payment of interest on this Certifi- cate shall be made by the Paying Agent/Registrar to the regis- tered owner hereof on each interest payment date by check dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Certificates (the "Certificate Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provideds and such check shall be sent by the Paying Agent/- Registrar by United Statos mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The issuer cove- nants with the registered owner of this Certificate that on or before each principal payment date, interest payment date, and accrued interest payment date for this Certificate it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Certificate Ordinance, the amounts 1 required to provide for the payment, in immediately available funds, of 411 principal of and interest on the Certificates, when due. IF THE DATE for the payment of the principal of or inter- est on this Certificate shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the data for such payment shall bo the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to elosso and ppayment on such date shall have the same force and effect as if made on the original date payment J was dtiv. THIS CERTIFICATE, is one of an issue of Certificates initially dated JANUARY it 1989, authorized in accordance with the Constitution and laws of the State of Texas in the princ- ipal amount of 910155,0000 FOR THE PURPOSE OF PAYINJ ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS TO BE INCURRED ON OF IMPROV TO) T ERSMUANIC PAL OBUILDING F (CITYE HALL)TRAND UCTITHE PURCHASEE OF T8 MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (7) PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF IMPROVE- MENTS TO THE CITY'S CIVIC CENTER AND THE PURCHASE OF MATERIALS, EQUIPMENT, AND MACHINERY IN CONNECTION THEREWITH, AND (3) PURSUANT TO CONTRACTS FOR THE PURCHASE OF THE FOLLOWING EQUIP- MENT AND MACHINERY3 A T?'ACK LOADER, A MOTOR GRADER, SOLID WASTE DISPOSAL EQUIPMENT, POLICE VEHICLES, AMBULANCES, A REFUSE 1 16 I ~ I i J I i mom TRUCK, AND A TREE SPADE; AND ALSO FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS AND FIFOR NANCIALES- SIONAL SERVICES OF ENGINEERING, ATTORNEYSo ADVISORS IN CONNECTION WITH SUCH IMPROVEMENTS, PURCHASES, AND CERTIFICATES OF OBLIGATION. THIS CERTIFICATE OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be trans- ferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar trig Y rms Land cconditions setiforth inr the Certi tifica cates, upo the Certificate Ordinance. Among other requirements for such assignment and transfer, this Certificate must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidenc- ing assignment of this Certificate or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Certificate or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Certificate shall be executed by the registered owner or its duly authorized attorney or representative, to evidence the assignment hereof. A new Certificate or Certificates payable to such assignee or assignees (Which then will be the new registered owner or owners of such new Certificate or Certifi- cates), or to the previous registered owner in the case of the asst nment and transfer of only a portion of this Certificate, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Certificate, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Certificates. The Issuer shall pay the Paying Aent/RegistrarOs standard or the one requesting fees and such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Certificate or any portion hereof during the period commencing lwor the witthe close of h of bu inesse ono theynextofollowingnprincipa h interest payment date. The registered owner of this Certifi- cate shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Certifi- cate to the extent of ruch payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered certificates, without interest coupons, in the I 17 I I ~ 1 denomination of any integral multiple of $5,000. As provided in the Certificate ordinance, this Certificate, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered certificates, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon sur- render of this Certificate to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Certificate Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Certificate or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date. IN THE EVENT any Paying Agent/Registrar for the Certifi- cates is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Certificate ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owners of the Certificates. IT IS HEREBY certified, recited, and covenanted that this Certificate has been duly and validly authorized, issued, and deliveredt that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Certificate have been performed, existed, and been done in accordance with law; that this Certificate is a general obligation of the Issuer, issued on the full faith and credit thereoft and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been pledged irrevocably for such payment, I within the limit prescribed by law; and that, together with other parity obligations, this Certificate, and the other Certificates of this Series, additionally are payable from and 18 i M 'w secured by certain surplus revenues (not to exceed $10,000 in aggregate amount) derived by the Issuer from the ownership and operation of the City's Utility System (consisting of the City's combined waterworks system, sanitary sewer system, and electric light and power system), all as provided in the Certificate Ordinance. THE ISSUER has reserved the right to issue, in accordance with law, and in accordance with the Certificate Ordinance, other and additional obligations, and to enter into contracts, payable from ad valorem taxes and/or revenues of the City's Utility System, on a parity with, or with respect to said revenues, superior in lien to, this Certificate. BY BECOMING the registered owner of this Certificate, the registered owner thereby acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Certificate and the Certificate Ordinance constitute a contract between each registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Certificate to be signed with the facsimile signature of the Mayor of the Issuer and countersigned with the facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Certificate. (facsimile signature) _ (facsimile signature) City Secretary, Mayor, City of Denton, Texas City of Denton, Texas (CITY SEAL) FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATIQN CERTIFICATE J PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that, this Certificate has been issued under the provisions of the Certificate Ordinance described on the face of this Certificatef and that this Certificate has been issued in conversion of and exchange for or replacement of a certificate, certificates, or a portion of a certificate or certificates of an issue which originally was approved by the Attorney General of the State of Texas and I i 19 i I ~ l I i i 1 y registered by the Comptroller of Public Accounts of the State of Texas. NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS Paying Agent/Registrar Dated By Authorized Representative FORM OF ASSIGNMENT: V ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this Certificate, or duly authorized representative or attorney thereof, hereby assigns this Certificate to {Assignee's Social (print or typewrite Assignees name and Security or Taxpayer address, including zip code) Identification Number and hereby rrevocably const tutes and appoints attorney to transfer the registration of this Certificate on the Paying Agent/Registrar's Registration Books with full power of substitution in the premises. Dated: _ Signature Guaranteed: NOTICE: Th s s gnature must be Reg stered owner guaranteed by a member of the NOTICE: This signature must New York Stock Exchange or a correspond with the name of commercial bank or trust ithe ng Ron the face of egistered wnethispcompany. Cer- tificate. Section 8. TAX LEVY. A special interest and Sinking Fund d (the "Interest and Sinking Fund") is hereby created solely for i the benefit of the Certificates, and the Interest and Sinking Fund shall be established and maintained by the issuer at an official depository bank of the Issuer. The Interest and 20 1 , Sinking Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and principal of the Certificates. All ad valorem taxes levied and collected for and on account of the J Certificates shall be deposited, as collected, to the credit of 11 the interest and Sinking Fund. During each year while any of the Certificates or interest thereon are outstanding and unpaid, the governing body of the Issuer shall compute and J ascertain a rate and amount of ad valorem tax which will be j sufficient to raise and produce the money required to pay the interest on the Certificates as such interest becomes due, and to provide and maintain a sinking fund adequate to pay the principal of its certificates as such principal matures (but never less than 2% of the original principal amount of the certificates as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of the Issuer, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levie3, and is hereby ordered to be levied, against all taxable property in the issuer for each year while any of the Certificates or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such interest comes due and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Section 9. SURPLUS REVENUES. The Certificates addi- tionally shall be payable from and secured by surplus revenues, to the extent hereinafter permitted, derived by the Issuer from the ownership and operation of the Issuer's Utility System (consisting of its combined waterworks system, sanitary sewer system, and electric light and power system) remaining after (a) payment of all amounts constituting operation and main- tenance expenses of said Utility System, and (b) payment of all debt service, reserve, and other requirements and amounts required to be paid under all ordinances heretofore or here- after authorizing (i) all bonds and (ii) all other obligations not on a parity with the Certificates, which are payable from and secured by any Utility system revenues, and (c) payment of all amounts payable from any Utility system revenues pursuant to contracts heretofore or hereafter entered into by the Issuer in accordance with law (the "Surplus Revenues"). If, for any reason, the Issuer fails to deposit ad valorem taxes levied pursuant to Section 8 hereof to the credit of the Interest and sinking Fund in an amount sufficient to pay, when due, the principal of and interest on the Certificates, then Surplus kI Revenues, to the extent hereinafter permitted, shall be k I ~ 21 II it t deposited to the credit of the Interest and Sinking Fund and used to pay such principal and/or interest. A maximum aggre- gate of $10,000 of Surplus Revenues may be used to pay princi- pal and/or interest on the Certificates and any obligations on a parity therewith. The Certificates and any obligations on a parity therewith are not, and shall not be deemed to be, payable from or secured by any Surplus Revenues in excess of an aggregate of $10,000. Until and unless an aggregate of $100000 of Surplus Revenues actually is used to pay any such principal and/or interest, additional obligations, payable from and secured by all or any remaining unused part of said aggregate of $10,000 of Surplus Revenues, may be issued by the Issuer on a parity with the Certificates and any other then outstanding parity obligations, with the Certificates and all such addi- tional parity obligations to be payable from and secured equally and ratably by all or any remaining unused part of said aggregate. The Issuer reserves, and shall have, the right to issue bonds, and other obligations not on a parity with the Certificates, and to enter into contracts, in accordance with applicable laws, to be payable from and secured by any Utility System revenues other than the aggregate of $10,000 of Surplus Revenues as described above. The Certificates are on a parity with that issue of City of Denton Certificates of Obligation, Series 1987-A, as permitted in Ordinance No. 87-108, passed on June 16, 1987, authorizing same] and it is hereby found and determined that none of the above defined Surplus Revenues have been used to pay any principal and/or interest on said city cf Denton Certificates of Obligation, Series 1987-A. Section 10. DEFEASANCE OF CERTIFICATES. (a) Any Certif- icate and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Certificate") within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the principal of such Certificate, plus interest thereon to the due date either (i) shall have been made or caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably deposit- ing with or making available to the Paying Agent/Registrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without rein- vestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the Issuer with the Paying Agent/Registrar for the payment of its services until all Defeased certificates shall have become due and payable. At such time as a Certificate shall be deemed to be a Defeased Certificate hereunder, as aforesaid, such Certificate and the 1 interest thereon shall no longer be secured by, payable from, 7 22 III J i I or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this ordinance, and such principal and interest shall be payable solely from such money or Government obligations. (b) Any moneys so deposited with the Paying Agent/Regis- trar may at the written direction of the Issuer also be in- vested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent/Registrar J which is not required for the payment of the Certificates and + interest thereon, with respect to which such mono+y has been so deposited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. (c) The term "Government Obligations" as used in this section shall mean direct obligations of the United States of America, including obligations the principal Uof and nited inStates terest of on which are unconditionally guaranteed by the America, which may be United States Treasury obligations such as its State and Local Government Series, which may be in book-entry form. (d) Until all Defeased Certificates shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Certifi- cates the same as if they had not been defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by this ordinance. 1 Section 11. DAMAGED, MUTILATED, LAST, STOLEN, OR DE- STROYED CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new certificate of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for such certificate in the manner hereinafter provided. (b) Aovlication for Replacement Certificates. Applica- tion for replacement of damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Certificate, the registered owner applying for a replacement certificate shall furnish to the i Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Certificate, i 1 23 f 11 the registered owner shall furnish to the issuer and the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate, as the case may be. In every case of damage or mutilation of a Certificate, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event of an!, such Certifi- cate shall have matured, and no default has occurred which is then continuing in the payment of the principal of, or interest on the Certificate, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Certificate) instead of issuing a replacement Certificate, provided security or indemnity is furnished as above provided in this Section. (d) rharae for Issuina Replacement Certls• Prior to the issuance of any replacement certificate, the Payirg Agent/Registrar shall charge the registered owner of such Certificate with all legal, printing, and other expenses in connection therewith. Every replacement certificate issued pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Certificate shall be found ; at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this ordinance equally and proportion- ately with any and all other Certificates duly issued under 4 this Ordinance. (e) i«*hority for Issuing Replacement Certificates. In accordance with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-60 this Section of this Ordinance shall constitute author- ity for the issuance of any such replacement certificate without necessity of further action by the governing body of + the Issuer or any other body or person, and the duty of the replacement of such certificates is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/- Registrar shall authenticate and deliver such Certificates in the form and manner and with the effect, as provided in Section 6(d) of this ordinance for Certificates issued in conversion and exchange for other Certificates. Section 12. CUSTODY, APPROVAL, AND REGISTRATION OF ` CERTIFICATES) CERTIFICATE COUNSEL'S OPINION, LUSIP NUMBERS, AND INSURANCE. The Mayor of the Issuer is hereby authorized to l have control of the Initial Certificate issued hereunder and all necessary records and proceedings pertaining to the Initial Certificate pending its delivery and its investigation, i f 24 I ~ I I 1 examination, and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Certificate said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the initial Certificate, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Certificate. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Initial Certificate or on any Certificates issued and delivered in conversio:i of and exchange or replace- ment of any Certificate, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Certificates. If insurance is obtained on the Certificates as provided in the Notice of Sale and Bidding Instructions and Official Statement hereinafter described, the Initial Certificate and all other Certificates shall bear an appropriate legend concerning insurance as 1 provided by the insurer. Section 13. COVENANTS REGARDING TAX-EXEMPTION. The Issuer covenants to take any action or refrain from any action which would adversely affect the treatment of the Certificates as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In fur- therance thereof, the Issuer covenants as follows: (a) to take any action to assure that no more than 10 percent of the proceeds of the Certificates (less amounts deposited to a reserve fund, if any) are used for any "private business use", as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not re- ceived by the Issuer, with respect to such private busi- ness use, do not, under the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code; (b) to take an; action to assure that in the event r that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the certificates (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate", within the meaning of section 141(b)(3) of the Code, to the governmental user 1 25 , J E (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Certificates (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finan:e loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (d) to refrain from taking any action which would otherwise result in the Certificates being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (e) to refrain from taking any action that would result in the Certificates being "federally guaranteed" within the meaning of section 149(b) of the code; (f) to refrain from using any portion of the pro- ceeds of the Certificates, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Certificates, other than investment property acquired with (1) proceeds of the Certificates invested for a reasonable temporary period of 3 years or less until such proceeds are needed for the purpose for which the Certificates are issued, (2) amounts invested in a bona fide debt service fun,i, within the meaning of section 1.103-13(b)(12) of the Treasury Regulations, and (3) amounts deposited in any reasonably re- quired reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates; (g) to otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of the f Certificates, as may be necessary, so that the certifi- 3 cates do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relat- ing to advance refundings)t (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the certificates) an amount that is at 26 I i { I ~I I i least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(f) of the Code and to pay to in later full, 100 6 percent of after the United a of America, the Certificates have been paid not the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code; and (i) to maintain such records as will enable the issuer to fulfill its responsibilities under this section and section 148 of the Code and to retain such records for at least six years following the final pdyment of princi- pal and interest on the Certificates. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations orrulings the mu promulgated the he U.S. Department of the Treasury pursuant event that regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Certifi- cates, the Issuer will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereaf- are ter g to a the which Certificates, additional the Issuer 1}igrees t to which o ply appl with the additional requirements to the extent necessary, in the oinion the exemption ffrm ifederalrincome taxation of interest on he certificates under section 103 of the Code. Section 14. SALE OF INITIAL CERTIFICATE. The Initial Certificate is hereby sold and shall be delivered to for cash for the par value thereof and accrued interest thereon to ev that the Initial yCerofficially tificate has found been e soldiat, and declared public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an official Notice of sale and Bidding instructions and official Statement dated January 3, 1989, prepared and distributed in connection with the sale of the Initial Certificate. Said Official Notice of Sale ar.A Bidding Instructions and Official Statement, and any addenda, supplement, or amendment thereto have been and are hereby approved by the issuer, and their use in the offer and sale of the Certificates is hereby approved. It is further officially found, detrained, and declared that the statements e and i correct official in all Notice and representations Sttemet contained material a are true in and off 27 I I i i I respects, to the best knowledge and belief of the City Council and the Issuer. Section 15. INTEREST EARNINGS ON CERTIFICATE PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Initial Certificate shall be used along with other proceeds for the construction of the improvements and purchases for which the Certificates are issuedi provided that after completion of such improvements and purchases, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on certificate proceeds which are required to be rebated to the United states of America pursuant to Section 13 hereof in order to prevent the Certificates from being "arbitrage bonds" within the meaning of the code shall be so rebated and not considered as interest earnings for the purposes of this Section. Section lb. FURTHER PROCEDURES. The Mayor of the Issuer, the City Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Certificate Ordinance, the Certificates, the sale of the Certificates, and the Notice of Sale and Official Statement; and the Director of Finance of the City shall cause the expenses of issuance of the Certificates to be paid from the proceeds of sale of the Initial Certifi- cate. In case any officer whose signature shall appear on any Certificate aha.ll cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be valid J and sufficient for all purposes the same as if such officer had remained in office until such delivery. 1 E ~ 28 , I 1 J f l CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1989, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES . ~mrvr_ THFRF.TO THE STATE OF TEXAS COUNTY OF DENTON : CITY OF DENTON : We, the undersigned officers of said city, hereby certify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 17TH DAY OF JANUARY, 1989, at the Municipal Building (City Hall), and the roll was celled of the duly constituted officers and members of said City Council, to-wits Jennifer K. Walters, city Secretary Ray Stephens, Mayor f 1 Jim Alexander Bob Gorton Linnis McAdams Randall Boyd Jane Hopkins Hugh Ayer and all of said persons were present, except the following absnteess None, thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meetings a written ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 19891 AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO I was duly introduced for the consideration of said City Council and duly read, it was then duly moved and seconded that said ordinance be passedt and, after due discussion, said m prevailed o and carrying with it the passage of said ordinance, p carried by the following votes sl AYESs , 1 NOES$ ABSTENTIONSt 2. That a , Ordinance passed at the full, correct pin the h above and aforesaid it true foregoing paragraph is attached to and follows th is { 1 M I k Certificate; that said Ordinance has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said City council's minutes of said Meeting pertaining to the passage of said Ordinance: that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting: and that said Meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17. 7. That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance: that the Mayor and the City Secretary of said City have duly signed said Ordinance: and that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Ordi- nance for all purposes. i ! SIGNED AND SEALED the 17th day of January, 1989. i s City Secretary Mayor i (SEAL) we, the undersigned, boing respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby J certify that we prepared and approved as to legality the { attached and following Ordinance prior to its passage as aforesaid. City Attorney ~ f Bond Attorneys i 1 r k I I JL-L I r 7 ORDINANCE NO. 89- ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1989, LEVYING THE TAX TO PAY SAME, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROUDURES RELATING THERETO THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at an election duly held in said city on DECEMBER 131 1986; and WHEREAS, out of the bonds aggregating the amount of $21,637,000 voted at said election, the City has duly issued $7,100,000 thereof, represented by the City's bonds designated as: SERIES 1987 and SERIES 1988; and WHEREAS, the Council of said City deems it necessary and i advisable to authorize, issue, and deliver another installment or series of said bonds; and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued, sold, and delivered pursuant to Vernon': Ann. Tex. Civ. St. Articles 823 and 1175, Article IX. of the City's Home Rule Charter, and other applicable laws. THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS THAT: Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate princi- pal amount of $3,615,000, FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC PURPOSES IN SAID CITY, TO-WITS $340,000 FOR STREET AND TRAFFIC CONTROL IH- PROVEHENTS; 5425,000 FOR DRAINAGE IMPROVEMENTS; $1,550,000 FOR PARK IMPROVEMENTS, INCLUDING ATHLETIC FIELDS AND NEIGHBORHOOD AND SENIOR CITIZENS COMMUNITY CENTERS; $4000000 FOR IMPROVE- MENTS TO PUBLIC LIBRARIES; $7000000 FOR CONSTRUCTING AND PERMANENTLY EQUIPPING FIRE STATIONS; and $200,000 FOR CON- STRUCTING A CITY LAW ENFORCEMENT AND COURT DUILDING. Section 2. DESIGNATION OF THE BONDS. Each bond issued pursuant to this ordinance shall be designated: "CITY OF DENTON GENERAL OBLIGATION BOND, SERIES 1989", and initially there shall be issued, sold, and delivered hereunder a single fully 1 'S f I registered bond, without interest coupons, payable in install- ments of principal (the "Initial Bond"), but the initial Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner herein- shall mean iand~InclThe term "Bonds" ude collectively the sInitlalt Bond oandnalle substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bonds" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI- TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. (a) The Initial Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered without Bondi interest aggregate coupons, principal amountY of 11 1989, n $3,615i00o he denomination and numbered R-l, payable in annual installments of principal to the initial registered owner thereof, to-wits i or to the registered assignee or assignees of said Bond or any I` portion or portions thereof (in each case, the "registered I owner"), with the annual installments of principal of the initial Bond to be payable on the dates, respectively, and in the principal amounts, respectively, stated in the FORM OF INITIAL BOND set forth in this ordinance. (b) The initial Bond (i) may be prepaid or redeemed prior to the respective scheduled due dates of installments of principal thereof, (ii) may be assigned and transferred, (iii) may be converted and exchanged for other Bonds, (iv) shall have the characteristics, be the principal of and ainterest ) on shall the be signed Initial a Bond sealed, and payable, all as provided, and in the manner required or indi- cated, in the FORM OF INITIAL BOND set forth in this ordinance. Section 4. INTEREST. The unpaid principal balance of the initial Bond shall bear interest from the date of the initial Bond to the respective scheduled due dates, or to the respec- tive dates of prepayment or redemption, of the installments of principal of the initial Bond, and said interest shall be payable, all in the manner provided and at the rates and on the I 2 i r" L r 4 dates stated in the FORM OF INITIAL BOND set forth in this ordinance. Section 5. FORM OF INITIAL BOND. The form of the Initial Bond, including the form of Registration Bond of the Comptrol- ler of Public Accounts of the State of Texas to be endorsed on the Initial Bond, shall be substantially as follows: FORM OF INITIAL BOND NO. R-1 $306150000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON GENERAL OBLIGATION BOND SERIES 1989 THE CITY OF DENTON, in Denton County, Texas (the "Issu- er"), being a political subdivision of the State of Texas, hereby promises to pay to I or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of $3,615,000 (THREE MILLION SIX HUNDRED FIFTEEN THOUSAND DOLLARS) in annual installments of principal due and payable on JULY 1 in each of the years, and in the respective principal amounts, as set forth in the following schedule: PRINCIPAL PRINCIPAL y~$ AMOUNT Yga$ AMOUNT 1991 $1750000 2001 $2000000 1992 175,000 2002 2000000 1993 175,000 2003 200,000 1994 1750000 2004 200,000 1995 175,000 2005 2000000 1996 175,000 2006 200,000 1997 175,000 2007 2000000 1998 190,000 2008 2000000 1999 200,000 2009 2000000 2000 200,000 i i 3 ~ r I and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows; per annum on the above installment due in 1991 } per annum on the above installment due in 1992 11 per annum on the above installment due in 1993 per annum on the above installment due in 1994 r ; per annum on the above installment due in 1995 per annum on the above installment due in 1996 ; per annum on the above installment due in 1997 } peg annum on the above installment due in 1998 per annum on the above installment due in 1999 per annum on the above installment due in 2000 per annum on the above installment due in 2001 per annum on the above installment due in 2002 per annum on the above installment due in 2003 } per annum on the above installment due in 2004 per annum on the above installment due in 2005 per annum on the above installment due in 2006 } per annum on the above installment due in 2007 per annum on the above installment due in 2008 per annum on the above installment due in 2009 ( with said interest being payable on JANUARY 10 1990, and semi- annually on each JULY 1 and JANUARY 1 thereafter while this Bond or any portion hereof is outstanding and unpaid. I THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The install- tents of principal and the interest on this Bond are payable to the registered owner hereof through the services of NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each princi- pal and/or interest payment date by check, dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter providedt and such check shall be sent by the Paying Agent/ Registrar by United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as I i 4 I i I I V hereinafter described. The Issuer covenants with the regis- tered owner of this Bond tnat on or before each principal and/or interest payment date for this Bond it will make avail- able to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in itunediately available J funds, of all principal of and interest on this Bond, when due, i IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or e be the next xecutive order to close, then the date for such payment shall s which is not such a Saturda ucceeding legal holidayor d y on which banking institutions are I authorized to closer and payment on such date shall have the same force and effect as if made on the original date payment ! was due. THIS BOND has been authorized in accordance with the constitution and laws of the State oi' Texas FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC { PURPOSES IN SAID CITY, TO-WIT; $3400000 FOR STREET AND TRAFFIC CONTROL IMPROVEMENTS; $425,000 FOR DRAINAGE IMPROVEMENTS; $1,550,000 FOR PARK IMPROVEMENTS, INCLUDING ATHLETIC FIELDS AND NEIGHBORHOOD AND SENIOR CITIZENS COMMUNITY CENTERS; $400,000 FOR IMPROVEMENTS TO PUBLIC LIBRARIES; $700,000 FOR CONSTRUCTING ` AND PERMANENTLY EQUIPPING FIRE STATIONS; and $200,000 FOR ' CONSTRUCTING A CITY LAW ENFORCEMENT AND COURT BUILDING. ON JULY 1, 1999, or on any interest after, the unpaid installments of principal a ofethis Bond may be ! p option repaid or redeemed prior to their scheduled due dates, at the 1 source, of to whole~,e or with funds and derivedin pat, any te available particular portion of this Bond to be prepaid or redeemed shall be se- lected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. 4 AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the 1 required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus E I, 5 I I ! I I 1 I I ! r f accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued inter- est to the date fixed for prepayment or redemption from the ` Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of this Bond or any portion hereof. h THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying Agent/ Registrar for cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfac- tory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to ovidence the assignment of this Bond or any such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such now Bond or Bonds) or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conver- sion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the i i i 6 i i i i Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. AS PROVIDED above and in the Bond Ordinanca, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggre- gate principal amount of fully registered bonds, without interest coupona, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement here- inafter stated that each substitute bond issued in exchange for any portion of this rond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this 1 Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hareof shall have a single stated principal maturity date correspond- ing to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being ; exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity on the same dates and for the same prices as the + corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated IN THE BOND THISCBOND INtITStPRESENT FORK PMAYIBEDASSIGNED AND TRANSFERRED O bonds Issued R CONVERTED ONCE ONLY, and to one or more assignees, but the and delivered in portion hereof may be assigned and transferred, and convertey + subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. I i y I I I k IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond ordinance that it promptly will appoint a competent and legally qualified sub- stitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted, authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or In the authorization, issuance, and delivery of this Bond have i been performed, existed, and been done in accordance with law; that this Bond is a general obligation of the Issuer, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such prin ipal matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been pledged irrevocably for such payment, within the limit pre- scribed by law. BY BECOMING the registered owner of this Bond, the regis- tared owner thereby acknowledges all of the terms and provi- sions of the Bond ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond ordi- nance constitute a contract between the registered owner hereof and the issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual signature of the Mayor of the Issuer and countersigned with the manual signature of the City Secretary of the Issuer, has caused the official seal of the issuer to be duly impressed on this Bond, and has caused this Bond to be dated JANUARY 10 1989. City Secretary, Mayor, City of Denton, Texas City of Denton, Texas ~I (CITY SEAL) 8 i 1 I i ~ i a FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness ny signature and seal this L Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) k Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration att Transfer. (a) The Issuer shall keep or cause to be kept at the principal corporate trust office of NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe; and the Paying Agent/ Registrar shall make such transfers and registrations as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Regis- tration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registra- tion Books only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satis- factory to the Paying Agent/Registrar, (i) evidencing the assignment of the Bond, or any portion thereof in any integral i 9 i J { r multiple of $5,000, to the assignee or assignees thereof, and the (ii) ; y such right teredgine then namvee ofhes 8 h d po portion c hereof assignee or assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Bond, to the extent of the unpaid or unredeemed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the registered initial ownor thereof. All Bonds issued de- livered in conversion of and exchange for the Initial d6 nd to the denominations t hereinafter) shall be in multiple of $5 000 denomination - stated that each substitute , have a single stated prescribed in principal maturity date) the FOAFt OF SUBSTITUTE BOND set forth in this Ordinance, and shall have the characteristics, and may be assigned, trans- ferred, and converted as hereinafter provi.led. If the Initial Bond or any portion thereof is assigned and transferred or converted the initial Bond must be surrendered to the Paying Bond i exchange for cancellation, f the Iniand t ale Bond shallahave is mingle go for any portion o mingle stated principal maturity date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If only a portion of the Initial Bond is assigned and trans- ferred, there shall be delivered to and registered in the name of the initial registered owner substitute Bonds in exchange for the unassigned balance of the initial Bond in the same manner as if the initial registered owner were the assignee thereof. If any Bond or portion thereof other than the initial Bond is assigned and transferred or converted each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is exchanged. A form of assignment shall be printed or endorsed on each nnowner or its dulyeauwhich thoriredll be executed registered or by by t he or representative to evidence assignment f porti<ms th~r6o. Upon surrender of any Bonds or any portion or ized re for transfe ant/Rgi is raro shall amake uthorsuch transfert ini the of the Paying g / 9 Registration Books, and shall deliver a new fully registered substitute Bond or Bonds, having the characteristics herein i described, payable to such assignee or assignees (which than will be the registered owner or owners of such new Bond or I 10 I i i I ~ I Bonds), or to the previous registered owner in case only a portion of a Bond is being assigned and transferred, all in conversion of and exchange for said assigned Bond or Bonds or any portion or portions thereof, in the same form and manner, and with the same effect, as provided in Section 6(d), below, for the conversion and exchange of Bonds by any registered owner of a Bond. The Issuer shall pay the Paying Agent/Regis- trarOs standard or customary fees and nharges for making such transfer and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of any Bond or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (r) OwnersbiP of Bonds. The entity in whose name any Bond shall be registered in the Registrr'.ion Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contraryl and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the j extent of the sum or sums so paid. (c) Payment of Bonds and Interest* The Issuer hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or replace Bonds, all an provided in this ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to the Beds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. (d) conversion and Exchange or Replacement: Authent{- f Q cation. Each Bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or unredeemed principal balance or principal amount thereof, may, upon surrender of such Bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or i li ~I 1 I t I 1 representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the regis- tered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, h without interest coupons, in the form prescribed in the FORM OF SUBSTITUTE BOND sat forth in this Ordinance, in the denomina- tion of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requewriting by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unre- deemed principal balance or principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portiun thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If a portion of any Bond (other than the initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof$ will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the initial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is, being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. The P,yinq Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fu)ly registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all exchanged or replaced. Ordinance, It is speand may cificallyiprovidedvthatd and exchanged any Bond authenticated in conversion of and exchange for or a replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the Initial Bond, but each substitute Bond so authenti- cated Record Date shall he a date inter- est from the interest payment date net preceding on 1 12 J a A r r I q which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment dates provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall boar interest from the date to which such interest has been paid in full. THE INITIAL BOND issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this ordinance there shall be printed a bond, in the form substantially as follows: "PAYING AGENT/REGISTRARtS AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bondi and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS Paying Agent/Registrar Dated By Authorized Representative" An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Bond, and no such Bond shall be deemed to be issued or outstanding unless such Bond is so executed. The Paying Agent/Registrar promptly shall cancel all Bcnds surren- dered for conversion and exchange or replacement. No addition- al ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed heroin, and said Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Vernon's Ann. Tax. Civ. St, i Art. 717k-6, and particularly Section 6 thereof, the duty of conversion and exchange or replacement of Bonds as aforesaid is { 13 ~I hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issued pursuant to this ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one re- questing any such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exorcise of such privilege of conversion and exchange. The Paying Agent/ --1 Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (e) In General. All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF SUBSTITUTE BOND set forth in this Ordinance. (f) payment of Fees and Charges, The Issuer hereby covenants with the registered owners of the Bonds that it will (i) pay the standard or customary fees and charges of the I Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees arLd charges of the Paying Agent/ Registrar for services with respect to the transfer of regis- tration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this ordinance. (g) substitute _Paying Agent/Registrar. The Issuer covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial I 14 i ' r institution, ar other agency to act as and perform the services of paying Agent/Registrar for the Bonds under this Ordinance, nd that the paying Agant/Registrar will be one entity, The Issuer reserves the right to, and ma oont the Paying Agent/Registrar upon not lessa thans120tdays written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar merger, acquisition, or other method) sh(or s success by ouldtresign or oother- wise cease to act as such, the Issuer covenants that promptly it will appoint a competent and legal]y qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change trarhpromptly shall/transferrandhdelivero the PRegistration RBooks --1 (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Ag,int/Regis- trar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly -gill cause a written notice thereof to be sent b Registrar to each registered owner of t then Bonds Paying i States mail, first-class y g Agent/- postage p , Y United shall give the address of the new paying Aq nt/Registrar. By 5ccept!ng the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provi- sions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. Section 7. FORM OF SUBSTITUTE BONDS. The form of all Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, including the form of Paying Agent/Registrar's Bond to be printed on each of such Bonds, and the Form of Assignment to be printed on eac'a of the Bonds, wall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions au are per- mitted or required by this Ordinance. FORK OF ctracTr~E gpN~ 1 ~ NO. i UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ CITY OF DENTON GENERALEOBLIGATION BOND SERIES 1989 IllTE$EST RAT,fi ~ygITY DAB i ~ ; 0113" Ih is I J L/I in Denton 100 THECoMATURITY DATE specified above the CITY OF DENTON, subdivision ofttheTState of Texassuhelreb being a political y promises to pay to or to the registered assignee hereof (e ther being here n a f t e r called the "registered owner") the principal amount of and to pay interest thereon from JANUARY 1, 1984 to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being payable on JANUARY 1, 1990, and semiannual- ly on each JULY 1 and JANUARY 1 thereafter, except that if the date of authentication of this Bond is later than DECEMBER 15, 1989, such principal amount shall bear interest from the interest payment date next preceding the date of authentica- tion, unless such date of aa.thentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest date. payment I THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof an each interest payment date by check, dated as of such interest payment date, draw from, f nds ofpthentssuertrequired by the ordinance lauthorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter pruvidedi and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. f Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corporate trust office of the Paying Agent/Registrar upon presentation and surrender of this Bond for redemption and payment at the principal corporate trust 1 16 I r r office of the Paying Agent/Registrar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts requirad to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or shall J-~ executive order to close, then the date for such payment be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to closet and payment on such date shall have the same force and effect as if made on the original date payment was deg. I THIS BOND is one of an issue of Bonds initially dated JANUARY 1, 1989, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $3,615,0000 FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC PURPOSES IN SAID CITY, TO-WIT: CONTROL $340sOOO FOR STREET AND TRAFFIC IMPROVEMENTS1 0 FOR DRAINAGE IMPROVEMENTS; $1 550 OOO FOR PARK IMPROVEMENTS0 INCLUDING ATHLETIC FIELDS AND NEIGHBORHOOD AND SENIOR CITIZENS COMMUNITY CENTERSI $4000000 FOR IMPROVEMENTS TO PUBLIC LIBRAR- IESt $7000000 FOR CONSTRUCTING AND PERMANENTLY EQUIPPING FIRE STATIONS1 and $200,000 FOR CONSTRUCTING A CITY LAW ENFORCEMENT AND COURT BUILDING. ON JULY 1, 1999, or on any interest payment date there- after, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funde derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $50000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemp- tion of Bonds or portions thereof prior to maturity a written notice of such redemption shall be published once in a finan- cial publication, journal, or reporter of general circulation among (including, but securities not dealers limited toe The City Bond NBuy ror no Now York (inc d The Wall I 17 Street Journal}, or in the state of Texas (including, but not limited to, The Texas BonntReo by United States mail, sent by the Paying Agent/ Registrar first-class shall first-class postage prepaid, not less than 30 days prior to the date each Bond fixed to o be any such redemption, its i addrto the registered ess as it appeared on the 45th day prior to such redemption date; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or maV ing thereof, shall not affect the validity or effectiveness of the proceedinya provided redemption of any Bond, and it is hereby specifically prov that the publication of such notice as required above shall be the only notice actually required in connection with or as a I any anyredemptionBonds or prerequisite to fixed redemption of. . B 1 shall be maired with the redemption priceenforethetBondso or theopt ons thereof which are to be so redeemed, plus accrued interest thereof raga thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the Bonds or portions + thereof which are to be so redeemed thereby automatically shall 1 be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemp- tion, and they shall not be regarded as being outstanding the except for the right of the registered owner to receive redemption price plus accrued interest from the Paying such Registrar out of onds shalls be provided redeemedo a subst tutent . If portion Bond or J of any interest a t the ~ Bonds having the same maturity date, bearing same rate, in any denomination or denominations in any integral J multiple of $5,000, at the written request of the the tame d owner, and in aggregate principal amount equal deemed portion thereof, will be issued to the registered owner er thereof ellati thenIssuert,ralldas provid©dfin thecBond ordina cehe expense of + THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTE- GRAL MULTIPLE OF $50000 may be assigned and shall be trans- ferred only in the Registration Books of the Issue: kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the pond ordinance. Among other requirements for such assignment and transfer, this Bond must bee twith o proper r instruments the paying Agent/Registrar, together assignment, in form and with guarantee of signatures satisfac- tory to the Paying org portions hereof i aanigintegral this Bond or any ny po multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or I .8 I I I l I s J r~ r f are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representa- tive,to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragrrph hereof for the conversion and exchange of other Bonds. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such trans- fer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to tho contrary. ALL BONDS OF THIS SERIES are issuable solely as fully I registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or as- signees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without I interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon sur- render of this Bond to the Paying Agent/Registrar for cancella- tion, all in accordance with the form and procedures set forth in the Bond ordinance. The Issuer shall pay the Paying Agent/ ? Registrar's standard or customary fees and charges for trans- ferring, converting, and exchanging any Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required I 19 L~L y, I ( ! to be paid with respect thereto as a condition precedent to the t exercise of such privilege of conversion and exchange. The I Paying Agent/Registrar shall not be required to make any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond ordinance that it promptly will appoint a competent and legally qualified substi- tute therefor, and promptly will cause written notice thereof - -1 to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted, authorized, issued, sold, and deliveredi that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond in a general obligation of the Issuer, issued on the full faith and credit thereofi and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been pledged irrevocably for such payment, witi,in the limit pre- scribed by law. BY BECOMING the registered owner of this Bond, the regis- tered owner thereby acknowledges all of the terms and provi- sions of the Bond ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordi- nance constitute a contract between each registered owner hereof and the Issuer. IN WITNESS WHEREOF, the issuer has caused this Bond to be signed with the facsimile signature of the Mayor of the Issuer and countersigned with the facsimile signature of the City j Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on on i this Bond. i 20 I 1 t ' ~I r I , a (facsimile signature) (facsimile signature) City of Denton, Texas City of Denton, Texas (CITY SEAL) FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. 1 NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS Paying Agent/Registrar Dated By Author zed Reprosentat ve FORM OF ASSIGNMENTI ASSIGNMENT j FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representative or attorney thereof, hereby assigns this Bond to (Assignee's Social (print or typewrite Assignee's name and Security or Taxpayer address, including zip code) Identification Number) and hereby Irrevocably constitutes and appoints attorney to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full power of substitution in the premises. Dateds f Signature Guaranteedt f I J 21 1 i i r r E NOTICE: This signature must be Registered Owner guaranteed by a member of the NOTICE: This signature must New York Stock Exchange or a correspond with the name of commercial bank or trust the Registered owner appear- company. ing on the face of this Bond. Section 8. TAX LEVY. A special interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the issuer at an offi- cial depository bank of the Issuer. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the issuer, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes -'1 levied and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the governing body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and prcduce the money required to pay the interest on the Bonds as such Interest becomes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such 1 principal matures (but never less than 2% of the original principal amount of the Bonds as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of the Issuer, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year while any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Section 10. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be f by reason of maturity, upon redemption, or otherwise) either 1 (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption), or (ii) shall have been provided for on 22 f ~ or before such due date by irrevocably depositing with or raking available to the Paying Agent/Registrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of suffi- cient money to provide for such payment, and when proper 1 arrangements have been made by the Issuer with the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes her-in levied and pledged as provided in this ordinance, and such principal and interest shall be payable solely from such money or Government obligations. (b) Any moneys so deposited with the Paying Agent/Regis- trar may at the writren direction of the Issuer also be in- vested in Government obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government obligations received by the Paying Agent/Registrar which is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so de- posited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. (c) The term "Government Obligations" as used in this section shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Government Series, which may be in book-entry form. (d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by this ordinance. Section 11. DAMAGED, MUTILATED, LOST, STOLEN, OR DE- STROYED BONDS. (a) ReRlacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be print- ed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. ` 23 I I (b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or muti- lated. (c) No Q2fault Occurred. Notwithstanding the foregoing provisions of this Section, in the event of any such Bond shall have matured, and no default has occurred which is then con- tinuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bs,nd issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the issuer whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (a) Authority for Issuing Replacement Bonds. In accor- dance with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-6, this Section of this ordinance shall constitute author- ity for the issuance of any such replacement bond without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Aggent/Registrar, and the Paying Agent/Registrar shall authen- ticate and deliver such Bonds in the form and manner and with I 24 1 1 i i I ro in s this ordin Bthe ondsfissueda.inpconversion and ei change f or other Bonds. for Section 12. COVENANTS REGARDING TAX-EXEMPTION. The Issuer covenants to take any action or refrain from any action which would adversely affect the treatment of the Bonds as obligations described in section 103 of the Code, the interest e" of forty pu poses includab federalleincomeetaxationincoIn furtheranceder thereof, the Issuer covenants as follows: (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fund, if any) for any "private business use", as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Resolution or any underlying f arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service the on the Bonds, in contravention of section 141(b)(2) Codes (b) to take any action to assure that in the event (a) thathe t ' exceeds 5 percent of thesproceedsnofuthe subsection (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportion- ate", within the meaning of section 141(b)(3) of the Code, to the governmental user (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts depos- ited into a reserve fund, if any) is directly or indirect- ly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Codet (d) to refrain from taking any action which would 141(b) private the n meaning being of treated section as activity bonds" result within the activ of the Code) to refrain from taking any action that would guaranteed" within thn result meaning of sectsn being 149fb) "federally of r the yCodet 25 i i h r r i r E k, t 1 4 (f) to refrain from using any portion of the pro- ceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investment property acquired with I (1) proceeds of the Bonds invested for a reasonable temporary period of 3 years or less until such proceeds are needed for the purpose for which the Bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.103-13(b)(12) of the Treasury Regulations, and (3) amounts deposited in any reasonably re- quired reserve or replacement fund to the extent such amounts do not exceed 30 percent of the proceeds of the Bonder (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); , (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(f) of the Code and to pay to the United States of America, not later that 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the code; and (i) to maintain such records as will enable the Issuer to fulfill its responsibilities under this section and section 148 of the Code and to retain such records for at least six years following the final payment of princi- pal and interest on the Bonds. it It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that 26 i I I I regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant ` contained herein to the extent that such modification or expansion, in the opinion of nationally-recognized bond coun- sel, will not adversely affect the exemption from federal j income taxation of interest on the Bonds under section 103 of the code. In the event that regulations or rulings are hereaf- ter promulgated which impose additional requirements which are ' applicable to the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemp- tion from federal income taxation of interest on the Bonds under section 103 of the Code. Section 13. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS: BOND COUNSEL'S OPINION, CUSIP NUMBERS, AND INSURANCE. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond issued hereunder and all necessary records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination, and approval by the Attor- ney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public Accounts (or a deputy designated in writing to act for said comptroller) shall manually sign the Comptroller's Registration Certificate on the initial Bond, and the seal of said Comptrol- ler shall be impressed, or placed in facsimile, on the Initial Bond. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the initial Bond or on any Bonds issued and delivered in conversion of and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. If the purchaser of the Initial Bond exercises its option to obtain insurance on the Bonds, as permitted in the Notice of Sale and Bidding instructions and official Statement hereinafter described, the Initial Bond and all other Bonds shall bear an appropriate legend concerning insurance as provided by the insurer. Section 14. SALE OF INITIAL BOND. The Initial Bond is hereby sold and shall be delivered to for cash for the par value thereof and accrued interest thereon to date of delivery, plus a premium of $ it is hereby officially found, determined, and declared that the initial Bond has been sold at public sale to ( the bidder offering the lowest interest coat, after receiving sealed bids pursuant to an official Notice of Sale and Bidding Instructions and Official statement dated January 3, 1989, E 27 I ~ I prepared and distributed in connection with the sale of the Initial Bond. Said Official Notice of Sale and Bidding In- structions and Official Statement, and any addenda, supplement, or amendment thereto have been and are hereby approved by the Issuer, and thtir use in the offer and sale of the Bonds is hereby approved. It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council. Section 15. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Initial Bond shall be used along with other bond pro- ceeds for the acquisition and construction of the improvements for which the Bonds are issued; provided that after completion of such improvements, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the interest and Sinking Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to Section 12 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. Section 16. FURTHER PROCEDURES. The Mayor of the Issuer, the City Secretary Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowl- edge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond ordinance, the Bonds, the sale of the Bonds, and the Notice of sale and official Statement; and the Director of Finance of the City shall cause the expenses of issuance of the Bonds to be paid from the proceeds of sale of the Initial Bond. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signa- ture shall nevertheless be valid and sufficient for all purpos- es the same as if such officer had remained in office until such delivery. 1 i a i 28 i S T, , CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1989, LEVYING THE 'SAX TO PAY SAME, AND APPROVING AND AUTHORIZING •ucrpICNTS AND PROC°nnecc~ RE LUTING THERETO - THE STATE OF TEXAS COUNTY OF D£NTON CITY OF DENTON We, the undersigned officers of said City, hereby certify as follows: 1. The city council of said city convened in REGULAR MEETING ON THE DAY OF the roll, 198 called f at the Municipol Building (City Hall), and was I of the duly constituted officers and members of said City f Council, to-wit: Jennifer K. Walters, City Secretary Ray Stephens, Mayor Bob Gorton Jim Alexander Randall Boyd Jane e Hopkins McAdams Hugh Ayer f a and all of said persons were present, except the thus w sti- absentees: tutinq a quorum. Whereupon, among other business, the follow- ing was transacted at said Meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 19891 LEVYING THE TAX TO PAY SAME, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO was duly introduced for the consideration of said City Council and duly read. It was then duly moved and seconUed that said ordinance pst discussion, prsaid motion, evailed an carrying g with it the passage of said ordinance carrying and carried by the following votes AYES t NOESI _ ABSTENTIONSs _ 2. That a true, full, and correct copy of the aforesaid and followsabthis and ordinance passed the attached described foregoing paragraph I I 7 6 h, Certificate; that said ordinance has been duly recorded in said City council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said city Council's minutes of said Meeting pertaining to the passage of said ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and nambers of said city Council as indicated therein; that each of the officers and members of said city Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Keating; and that said of the meeting wash given, all as the time, required place,lg and spuopen rpoe to r-1 by Vernon's Ann. Civ. St. Article 6252-17. 3. That the Mayor of said City has approved, and hereby j approves, the aforesaid Ordinance; that the Mayor and the City Secretary of said City have duly signed said Ordinance; and ` that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said ordi- nance for all purposes. I ~ SIGNED AND SEALED the 17th day of January, 1989. l i I city secretary Mayor (SEAL) - - - - - - - - - - - - - - - - - - - - - - - - kR, the undersigned, being respectively the city Attorney and the Bond Attorneys of the City of Denton, Texas, hereby certify attached that following approved as to legality passage the aforesaid. _ I C ty Attorney 14 on Attorneys I { I r r I I i 11 I'm loll 11111111 1 1 1 I I i f Y-T 4 1 1 I i I ,r E t ~ v i i CITY COUNCIL REPORT FORMAT DATE1 1/17189 I TO: Mayor and Members of the City Council FROM. Lloyd V. Harrell, City Manager SUBJECTt PUBLIC HEARING FOR 2-88-016 RECOMMENDATIONt Planning and Zoning Commission recommended denial at its October 26, 1988 meeting by a 6 to 0 vote. According to the Zoning Ordinance, a j favorable vote of three-fourths (3/4) of all members of the City Council is required to overrule the recommendation. of the Commission. SUMMARYt The detailed plan proposes an automotive service center and retail parts store adjacent to Wolfe's Nursery. Pep Boys sells and installs parts on automobiles including tires, and batteries. Other services include minor tune-ups, brake repairs, muffler installation and oil changes. BACKGROUND: l Planned Development-6 was originally approved in 1969. The concept plan refers to uses but does not show the location of buildings, parking lots, etc. Several amendments have been approved which have considerably changed the original plan for the Planned Development. Site and land uss plans have been approved for a variety of office, retail, multi-family and single family uses it this Planted Development. The City Council postponed action on this item at their December 13, I 1988 meeting. Representatives of Henry S. Miller Co. and Pep Boys met with representatives of the neighborhood on January 9, 1989 and I plan to meet again before the City Council meeting. PROGRAMS DEPARTMENTS OR GROUPS AFFECTEDt Fifteen property owners within 200 feet were notified. FISCAL IMPACTt No impact to the general fund. Respec y sub itt Prepared byt Lloyd . Harrell City eager Cecile Carson Urban Planner APPT~edt , , i I F an H. o ins Executive Director for Planning and Development 24131 4 I r 4 r I f PLANNING AND ZONING COMMISSION RECOMMENDATION TO CITY COUNCIL To: Denton City Council Case No.: Z-88-016 Meeting Date: January 11, 1988 GENERAL INFORMATION Applicant: Pep Boys of California, Inc. 1122 W. Washington Boulevard Los Angeles, California 90015 Status of Applicant: Owner Requested Action: Approval a detailed plan for a proposed Development-6 The portion land o use Planned automobile service center and automobile parts store Location and Size: A 1.727 acre tract located in San Jacinto Plaza on the I-35 service road adjacent to Wolfe's Nursery Surrounding Land Use and Zoning: North - PD-6 Single family residential South - I-35 East - PD-6, San Jacinto Plaza Shopping Center, retail West - PD-6, Wolfe's Nursery Denton Development Guide: Lou intensity area I SPECIAL INFORMATION I Transportation: The property has access to the I-3S service road. In an effort to improve traffic circulation, the detailed plan would eliminate one access ro the service road. Stacking f I has been provided at entrance and exit points. Utilitiest Existing utilities are adequate for 1 this use. A 16' utility easement has been provided along I-SS service road. 1 I 4 i a (Case Z-88-016) Page Two SPECIAL INFORMATION (continued) Drainage: Drainage will be routed to the access easement or east toward Mervyn's parking lot. HISTORY The property was zoned planned development in 1969. Planned development-6 includes residential multi-family, cluster and retail/office land uses. Several amendments have been requested and approved. In addition, site plans for office and retail uses have been approved. This csse was scheduled for public hearing on October 12, 1988; however the item was removed from the agenda at the request of the petitioner. The City Council postponed action on the request at its December 13, 1988. ANALYSIS The property is located in a low intensity area according to the Denton Develo went Guide that is Sit over the intensity standard based on ex sting land uses and 1691 over the standard based on current zoning. The application was made prior to adoption of the Denton Development Plan. While the disproportionate share of iaens ty po cy was not applicable in 1969, a of disproportionate share of intensity was allocated by approval the original plan for the planned development, and a disproportionate share of intensity is requested with this detailed plan. This site was originally designated for multi-family and office/retail use in the planned development ordinance. The detailed plan contains all information required by article 11 of Appendix B, Zoning, o£ the City of Denton Code of Ordinances. The proposal shows the elimination of an access point to the 1-3S Service Road and landscaping and screening along the I-3S service road. A six foot solid concrete/masonry fence is proposed along the boundary of this site between the site and the adjacent residential property to the north. The internal traffic circulation is designed so that parking is located on three sides of the building. Landscaping is provided throughout the tract. Signage will include one ground sign and ,all signs on three sides of the building. The detailed plan also includes elevations of the building. ~ K 9 I (Case Z-88-016) I Page Three ANALYSIS (continued) The Planning and Zoning Commission concluded that an automotive repair center as designed in this detailed plan could be disruptive to adjacent neighborhood. In addition, the proposed land use as designed in this detailed plan could be considered a violation of the neighborhood preservation policy of the Denton Development Guide. Zoning decisions have a significant impact on existing neighborhoods, and the policies of the Guide state that the priority should be given to the existing neighborhood. The petitioner submitted a noise study prepared by Kimley-Horn and Associates to determine the impact of the proposed use on the adjacent property. The study states that the noise from I-3S appears to be greater than the noise generated by the proposed use. In addition, the petitioner has argued that noise from Pep Boys will be deflected toward I-3S by the { concrete/masonry fence and/or defused by the trees and landscaping. The Commission expressed concerns about outdoor activities, lighting, and hours of operation in reaching their decision. The noise and lights were problems that the Commission felt would be difficult to control once a building of the type proposed was erected. Four Pep Boys stores in the Dallas-Port Worth area were visited by staff and appear to be similar in design and construction. Most of the facilities are not located adjacent to existing neighborhoods. The Pep Boys Store located on Collins Street in Arlington is located adjacent to an existing older residential neighborhood. In visits to the Pep Boys stores, the staff witnessed three incidents of repairs occurring outside the building either in the parking lot or adjacent to the bay-repair area. Although the petitioner stated it was against company policy to work on j vehicles outside of the building. If approved, the staff had recommended two conditions: 4 1. A minimum six foot solid concrete/masonry screening device between the site and adjacent residences shall be constructed pri.or to issuance of building permits for { construction of the main building. i 2. Landscaping shall be installed in accordance ;rith Ordinance 88.104. i i i N i ti a V r (Case Z-88-016) Page Four ANALYSIS (continued) Since the Planning and Zoning Commission meeting, the staff has informally made a number of design suggestions to the applicant and the applicant's representatives which may enable the proposed use to be more acceptable at this Location. If significant amendr.ients are made to the detailed plan as submitted to the Planning and Zoning Commission, the City Council should not act on the revised detailed plan without a Planning and Zoning Commission recommendation on the revised detailed plan. RECOMMENDATION ! The Planning and Zoning Commission recommended denial by a 6 to 0 vote. ALTERNATIVES 1. Approve petition 2, Approve petition with conditions 3. Deny petition 4. Postpone a decision ATTACHMENTS 1. Location Map 2. Detailed Plan 3. Development Standards 4. Ordinance 069-3S S. Detailed Plan 09/14/88 6. Noise Study 7. Rep1 Form Totals 8. Mailing List 9. Minutes of Planning and Zoning Commission meeting of October 26, 1988 i I i i i r r I i Z s$ 016 I HA Y S Dk ALECK VISTA wtu too" L j( 35 At f lose lOMD01AERRY ~ ~wr Q i sera s.n.a ati. cs aivasra.N~ ~ . I SAGS 19196 d3d I ~ ~ o s ' • 1 tii j f V I Z 1! s r f II _ ~ ~~II i f I I I , II! F TTT1 +r~!yy~~ III rl pr ♦w ww J I~ DI ~PII ~ !IA 11 1, H I I I II p a I I Jill IM 114 w 1110,1111 114111 ti r ' .~lliJl X12 i ~ ~ • ~ F i I I Sol p 6-vt -hull tVYO J k4i w~ p ~ eKe r lt.L L, 7L+.~ _ - B ~A1r iC C3i~Yd0. I. 1' 1 !e~ nd VD YAW' -mW0I VAIV u"r SAr. ELEVATION on ADO b, 10° w~ u0ntnoa [4 °S 4, ° a e .AUTO PAN i C3i tSi ci G'S-~ Ci ~3 - a~rj~ ~~4~~ ¢ir3 a~sr 4 1 ;IN kR ELEVATION 71V„ Y S R00/ IM I I r*MALf ml b . !I , K4! 16! 1101 ! R,_ ELEVATION nc 7 *pip AU40 rA0.Yt 7is',V J~i3~ 1I0.W8Ci C3tlY0. v DMLCIIRNT ITAODAI DiTAILSO PLAN 1. aeeeeeset e! Iateat o! Areetl Owner intent is !e eearata a 2A_S7~ a.t. ens-sterry a++tn+nihla center consist! nn ei 13, 26a e.1~pj r• ai at+rA yar*a. f-{raa. hatteriea. zsiacallan.nue ral, .A { .eta anA 0 a.■ {r.. a"a UP _minor tune-6&a. .UAkas. >at+fgl.ra. L+hes anA MI rhang.a_ AnA !ha installatinn of a++Mn PAS" nnnrnl t; enlA h,W 1p.1; a^"■ 2. statesoat Indicating soilatlos to oestee "Volopleat gsi6e1 LOw intensity area i 3r Total Nuke, of A4re0 is prop"" Clotrietl t 1.727 acres 1. LW Q4e4 aN Vaal NOW Of A"4a l4 1446 OU414 Of 1ra44s local hofa0d Ace"" 4. suglo roily "toow N/A E be $1"It Tamil A44446e4 (MWt**W# 41444", 044*1 UA ce Attacked ratio/dardoo/sero Lot Lin N/A d. oWlos N/A or ualti-fasily N/A 0!!444 N/A g• IlolglNtNN Sonia 00- &A !e 442"&1204441 .~~.N/...!►....~~., 1. C4swteiai --N/A Lily LMMt[441 N/A t• "M Md"Wal MIA 1e, cum Is"046y) Automotive caner - comnoial auto parts/ret, 13.261 s.ll,ta- OWN 4010 &Jo bay isr j 2,575 art, storage I ` 7 w i • ' saae~l S. Oil-site lafotaatioa adjaceat of swrouading load wee, toning, sttlets, dtaisa ga facilities, and otter uistisg or Ptoposed taptorasaats. (stow as cencspt or detailed #142.) S' Traffic tad Treaapottatiod - indicate e21st101 and Proposed sheets, patting lots, loading areas, access potato* (show on concept or detailed P1aa.) Ptojected Trattic Ceneratioa. (rased on traffic study, it tequlted,) 1,232 tries - 7. sulldingat s, AN9011wt• locatloa. (!tors 011 evaapt oe 40611641 plea.) t. Naslau11 toigett ~3!-Q' of nisiau11 estaaaast (!tea so coaeePt ee detailed plan.) Front 501-0' Rear 16.00a d. nohow!! Mess !lose KN is""* f"t) fw 11s11H11idMtlall N/11 I • c Resldnttal dutdlV1e1061 s. MuaMs e! 0nit41 i~ we (dwittll >r, cured tad 14141at/e11 41! loss 18bomm as 4111110004 an dst"Ied pan.) to Minis" 411s11i WL&b ad dap)) M 10"1 (Mm m sww/t,41e 60al141d # s*) d• sl(ilsasl tiNto $1& 1111d Sete toed Settseita (sMr11 M Sk"Op a detailed Plea, -0- i i - w i I I J L ~ lags lf. water and Dements - &WosisSts loeatioa of all uistind or proposed etttkf, ponds. WON floodplalas, othea Vats tetontisS Of maioa draiaafv f44111elts and ioptevtmeats. (show of eoacert oe detailed plan.) 10. utilities - toatloo of all ealoe sewto Water ea electrical lines aM facilities. (shwm on concept or detailed plan.) 11. Loattoo of then 3' In dlaeeter - $is (6) lent flee 11mand level. (shove oa concept of detailed plan.) .a. Open space - location and sire of ft«nbeltae parka, coma n and recreational attaa. (shove on concept or detailed plaa.l r 11. Wowing - location$ tip and file of all teas"# beats oa sotse"64 fMtares. Move on concept e< detailed plea-) 61-00 high concrete tan w amen eertls ereeertY line. i 4 I ~ 101 DNelepaat do adale (090"Pt PIGS) • sbsvi" swifle date detailed /lea will be sebtitted, Mss to start asastrnetiaS ad aWote ewttnrtiea, "A take of devolepmat. All Batas abwld /adisste math NW tare. i _ AOf) U M6 >?100t>rlsind !M A if Wen MAN 1!. u"espial Fla • majac teatesad son two of luftewaq to M "N. f~ndaCatll anruell naiatina_.Qi ~«w~..~uw lrwww nw eert!► etOeeltY Line and. a_° ~ - ~ i I .M 1 I I '1I■ A}} r t E page a' a i 11. Uses - show loatios, typo and also as detailed flu; otherwise, signs must Ceafsra to Attieli 11 og the teslal Ordisssem, e, y IAO-90 ln$ %4Qh/ RA llepu 11. aidawalta. (Show. ea detailed plaa.l 11. all leforaatloa retelred for PCGILI46497 plat is seesrdnes with AppeadlX A metes Development Coded of the Core of Ordlauees. (A separate plat to ragultN.) it. Dovslopaaat Schedule (detailed plaa) - Ladiatlag start sad eoaplattoa of coaatruetioa and the rate of development, All datsm should Ladies&@ ooath and Year. Apployal of detailed plan by ~ ~ DlC~mb lt. 191 $ ie~ ~'~ial n~+~i~_ - tiw~u~-~ leaaf wilt ~ Construction - July, 1919. 1 I I 7%tl f „ I ` W P E 1p.. T di ORDINANCE N0. 69•31 (Continued) rno slid taxer are to be Isses/ed and collect" for the purooses hereinafter stipulated as follow, to watt (1) For the General Fund allocation on the 1100.00 valuation 1,6501 (b) For the Interest and Redo"tion Funds on outstandlnq bonded indebtedness on the 1100.00 valuation .8199 Total Allocation of levy 111.50 SECTION 111. That the City RAMA"? shell cruse copies of the bud24t to be f11ed with the City Secrets , the County Clark of Denton County and tM State to•otrollor of Pu711c Accounts. SECTION IY. This ordinance shall be effective iRatedistely upon its P4114". PASSED AND APPROVED this 161h day of Sooteeler, A.D., 1919. j ~ (!'A. ATTESTt CITY OF 0lTIT~N, Tam. CITY u(=$ TE11AS APPM O AS TO U101. FOW I I OA%A CITY CITY 0' OIIRDII~ to" 41bIlNNCR N0. wx AN OPOIMNCt AMTAY(1014 TOM IONiM iMf OF THI CITY OF DENT TEXAS; AS SA11i WIS ADOPTED 4 AN APMIi TO TNt COOL Of OADINANCti OF I1I CITY Of DEIITON TE1Ao 11 ONOINPISM ND.*Wl AND AS SAID MAP APPLIES TO MAIN PWNTY OM AS CITY LOTI 11 Ali It Of CITY IIACN 2M1 CM Lan To to 3 AND 1 of CITY NAM M *0 CITY LOT 11 OF. ~C.I.T~Yy N.= 2T410 AS 9" ON TA OFFICIAL TAN NAf Of TIRE CITY OF va I 0 TEXAS, AND NONE PANTICAAMLY 013 EW DY PLAT SNCONPOMTEO tININ6 me DLCLANINI AN EMCTIYt DATt. TNt COUNCIL OF T11t cm OF DENTOii, mum Kwv Owinims SECTION I That tM W" fts of tM City of Oath Treace, Idiot" i JuMtefy t1, )1N a a alip MI A t to tM CMs of OWfibt " of the city of Dentin, fam. oilier tM srev9sime of Ordl mas ft. 41.11 be, and tho tae 11 We" aatd" as folloaot All tM Mni%ftor dosalb" PrWrV It rurved free IN oM • 44ilturel Dittr(ct M 6114104 06 said toning NIP, Ind all provisions of ONlnehco Me. 41.1 adopt" the 14th day of January, 1 1 OFOIWCC YO, 69•;. ,Continued) 1969, as emended, shell hereafter apply to said property as "PD' planned Ceveiopeent District according to, and subject to, the below conditions and requir"ients, and to the plot attached hereto and made a pert hereof for all purposes, and being generally described as all that certain lot, tract or, parcel of land situated in the City and County of Denton, Tau, known as City Lots 11 and 12 of City Block 295; City Lots Is 2, 3 and a of City Block Ul and City lot 13 of City Block 276/0 as shorn this data on die Cfftclal Tax Mop of the City of Denton, Taxes, and being the same property described in the attached plot (located in the 1700 Block of Dallas Drive), which conditions and regwlrenunts are as folio": 1. No buliding or other structure shell be constructed on or across aisttng lot lines shower on the attached plot and on.futvre roplats, nor to dour than Me front, side and rear yard rmireeunt stated in the Zoning Ordinenes; The term "Lot Ones■ as used in this ordinance shall ruin the division tines of any sawn lot or . parcel of land which circueacribe an ores WON the attachel plat. ! 2. Lot ltna shall be changed only by resubdividing or i 7 r.platting,to the mommr provided by the Subdivllloe Mgulatio", in Article 13.03 of Appndls A to the Code of Ordinaceo, 3. WM a tract or papal of land is rewbdividK or replatted, any and all additional rights of way and assewts which , ro dkmW is sary by the planrfng ant Zoning Coesduioa shell be dedioatad by the preen r"Adividing or replotting the lad the Uq as if tha tract or papa) wan being Originally svbdividad. s. [ad tot or tract Am an tM attached plat shall be liai10d to area structure only rogerdl"g of the use Indicated On the plat, until Sam is fvrow platted Within the dalin"101 are" shares an tM •ttaded plat, al each $Yd plat 1411 Show all propedl building $111011, building let bad lines from "d street ad abutting prepe"Ye all ytllfty, str$atr alloy W Kass MOW of Wagr, coed dnt" Ways, tow the dedication to the City of all Wool Streets, allay "A or 04MMU to larva "age and upon the completion of the paving of all itroo" obuttiag fad 0 l"146 al n"rl to gain access thomotes "say be reguirod by the plowing ad Zoning COWSSion, such plat shall ba°111ed of record along edth the 9anarel plat attached hereto tpon its approval by the planning coed Zoning COWIS1001, II _ i l ril[r € Q 5 f• I a ' OROIIAMCE N0. 69-75 (Continued) i Building permits will only be ilrued for those gross shown on the detailed plat as building Anal within the set back Tines. S. When a tract or Parcel of land is rosubdivided or platted is described In the paragraph above, any and ell additional righU of way and aasenents reouirod or deened necassary by the Planning and Zoning Commission shell be dedicated by the person nsubdfvlding or platting s:nr, as if the tract of oiKel were befog i originally subdivided. S. All Provisions of Ordinance no. 69-01 (Zoning Ordlhanee) r of the City of Gnton shall apply to the property within the attached 1 plat to permit the toning wait Indlcated Marton, by shading or otherwise, and no over restrictions Nan those found for each such use district shall apply, nor shall any other use thin those permitted by the respective swing district be permitted within the areas to designated + on the attached plat, and the toning district areas so defined shall not be changed except by asndsrnt of this ordinance. A platting or roplAtting of any area shill not affect the uses permitted within t respectivo districts ftwo an the attachee plat. i F ` 1. All the straits, eassoents, alloys and rights of way Indfceted on the attgtMd plat hive been l property "cited, or are now herilr dediated, to the City of Oenteee sod the rime Art hereby accepted by said Cite for WAIN Purpaee. 0. All streets sMll be paved as rmlmmi by the flaming and Zoning Comwiasioo prier to the issuMa of any Ow1111ng permit, and all giving shall be dons aster log to the speeiffaatione on file to tied efffce of C~Itlr osvelol a rid under its direct fnspectlon and tupervisioo. The paving width withfa the dasfgmted street rights of vq shill be as "Irld by the OlrmaWr of Caessunity Oevelepimets prwfded that the uawl standards for asst be follaxed. 9. All ordimom of tM Cite of Oaateo and laws of the State of Pews shall be tomplfod Willis and all rogvlatlM rogardfng UN subdlvfdfnq of proprq are herb aprasaly"applltMle NNW, 10. Ile Wilding permit or co"Iffate of ooeupanq will be issued until the pertinent condition atatN Mnia Mva teat COWIIed xi th. 11. no fellafng Wilding and use »ttrittlon shall apply I I i ORDINANCE N0. 69.39 (COOVAI d) to all lots Migrated for single family residential use only on the attached plat, and seems shall be included as dud restrictions on such tots, along with any others impoead by the developer consistent with the intent hereof, and with all applicable laws and Ordinances; Provided that the following restrictions are deanrd minimal only, and any greater restriction Imposed by the developer shall preveill ta.wit: A. All lots in the 011mille family' dasigm4W area within the attached plat shall be used for tingle family residential purposes Only, Constructed upon Concrete foundational with single q&rages or carports attached, and necessary outbuildings for single family use only; provided, however, that double or triple garages may be detached from the residence but shall not be closer than 100 fast to the front _ 10t 1Snei b. No residential stnrcturs shall be erected or placed an any of the lots In such residential area having lass than 1900 square feet of floor space, exclusive of garage and porches. C. No building shall be looted neenr than eight fast to any side lot line mar nearer then WrtyNve feet from tho front property line, nor nearer than 19 feet to any side street lima d. No trade, busimaa or commercial activity shall to carried an or located upon any lot in such designated area, nor shall j anything be done the" which may become an a"ana or nuisance to other rosldentl in the am area. 'a. Mater and sewerage connoctims shall be made at the property tine. f. Me chicken, turkeys or other fowls, cow, cattle, hog or hags, hone or horses, or any other Iivestack of any classification shall one be kept or parmitted on any lot or IOU In such area. tom" UM any tae inosuwo trol area or uund asyatnolddsoft I laud less.plaeed A. Thews ca onto are to rue with the IAW and shoal be biaMr4 on the aee lot owner, their succesters or their heirs executing ads9Metnten and $$air few a Wed of to years from 3ootsoo► 17, imt untimin9 until SMtomber A. 1979, inclusive, at which time such cerananis shall be outenetically extended for sucutsive own r~s off the dotIV4~elets, 1 wow 06 rlinN to cJo %M hid sold seamswent is whole W In part. 1. If any ownr of t lot of lets In said designated bra, or their Min or ut1llostf shall violate or attempt to violets any of tMOoearenanty or rostrietieennpns haute cottnyytaifit gild ned, tads It shall be )&&I viol, of aitaited vielatono t+ coveoveop i a and tai alther prevent him or then from so deiny, or te nearer dsssagaf hr wed vlblatlaha. 1 J. Invtlldttloes of cap of those comma by !fit of II cwt order, shall to "Was 4"W aq other proHtlan Mseeff thich shall wcmie to NA1 fora and offeot, The owner anchor dMIMF of tad land dwriled is tad attached plat, for sew in eessidsration of the gnmtlng by the city Council of this soninia classification en tM said property, deaf hereby bind i i f t I 1 r 4 i r l i ORDINAACE NO. 6g•.. (lantlnuod) Itself. its successors, executors, adsrlnlstratore and assigns to fully coaply with all of the above described tent and conditions for the use of said land as long as this ordinance shall ronrln in effect, and the said developer and/or owner understands that without full and complete j cosgllance on his part with the Bald tans and conditions the uses yaneltted herein and horeoy would otherwise be prohibited under the Zoning Ordinance of the City of Denton, and In order to secure this imandsnt to the toning Meg to R%ke such use of the aforesaid land, does hereby covenant out it will fully and complotely coeoly with the terms and conditions herein asntfoned, that this covenant shall run with the land, and shall be binding upon itself, its holes, successors, ixecutori, adeinistrstoes and assigns, that upon breach of this covenant this Planned Dewloprnt District nay, at the City Councils discretion be made null and void and thereupon said property shall once more become subject to the regulations applicable to property in the 1 •A• - Agricultural toning 01stritt under the tans of the Zoning Ordinance of the City of Dentam withbvt any right an the part of 1Ualf, itS holes, successors, uucuters, admimistreters or assigns to continue the development of said preeisea as planted. it. j That the City Cowell of the City of Denton, Tama, honey Jl finds that such planned Develbgmt, District is in accorWol with a comprehensive plain far the purples of premeting the genre) welfare of the City of Dentin. Tema, aed with reasonable consideration, among other tbinp, for the dareetar of the land and for its psailar sultability or peaTter wee and wltlt a via to conserving the value of the Anse and buildings fa the vicinity, protecting h~ lives, and eneorrgiell the asst appropriate use of Tare for the meslmu+ benefit to the city of Denton am its citim". sEtala rll• ~ I' - That this ordinaa shall be is full fora and effect isedtately after its passage and *travel* the "Irsd public hear- inggee heretofore bare held by the Plarosag are Zontnryf Cowillon em~ch NteCfowell of the City of Deetom, Texas, after giving due PASSED An APMOMED thta the 23rd day of SgtWo t E. 0., Cm'DP DE 6, TVA ArMSTs CITY 0► 0[!11011, TWS APPAOMED AS TO L96K FOllts I J ' 0 aCCGlvLu ,Ll u - - F! X1..1 10Q. ~a:w .s Ip .a --emrc woo I I '1 ` . rs r t-arrmomm r - 3A r-r LLb 4f UT[T um Y atop N _a ow~ an 1-1~ Iwo ow - L so-f a" HOI.~ IA..1,1. W l,LI r w I mg --I, w~r~ ~ ~ ~ wnlw_ UROU ROAD t + PCP BOYS - DO ION hl•M I E { I I i r q r Klmley-Hoar end Associates, Inc. , aseo con s+oaa sane Loa oee~.e T•Kaa rsa s+ ia+ y sae-roo~ ` *@*W1 Drurkaa KA01" 4 VAV" IWA WW" M DOW& PhGM36 W iY D3Im aae& remoaoNba Ft tJU Wd"Y" h66% Ft N Fem Swot TECHNICAL MEMORANDUM To: George Weathenil From Kimley-Horn and Asso-.W$3, Inc. - Dallas, Texas Subject: Noise Study - Pep Days Site in Denton, Taxes f Date: Octobar 18, 1986 f 1 Pursuant to your request, KimIey-Hors and Associates, Inc. coadueted a limited salsa study relating to the proposed Pep Hoyt development site In Denton, Texas. The site fronts Lions Ltterstate, 35E sad is located between the Mervyn's department store whet of the Golden Triangle mall # ad the Nolte Nursery. The purpose of this study was to determine the likely noise impacts at the 14vpoted Pep Boys site add the appropriateness of a sound barrier wall with adjacent trey at mitlgatlns these impacts. In conducting this study, selected noise level readings were taken si three locations during the afternoon and early evening hours of a weekday. Taws three locations were the propsosed Denton Pep Boys site and existing Pep Boys locations is Piano Lad Garland. The Priaclpal nok a generators were identified, and noise levels both peek and ambient, were recorded. The points wht,re the actual readings were taken were chosen to ipproxiaute the loation of the proposed sound barrier wail adjacent to the residential trub east of the site. The following table summariaa the noise levels that were found a each site. Notes LOW Saasssary D"tod (proposed) Ambient SUB Pak ds" GVIW (fawns) Ambient 63d8 Peak 7648 Piano (existing) Ambient S1d8 Pact 73d8 I Bu"ne count mieda woo sfte to V I i l ~I 7cLti(iL':~ I`. V At tie proposed Denton site, noise levels were dominated by the freeway located directly to the west. Peaks occurred when large trucks had to negotiate the significant pade at that point ou 1.3SE. The j existing Garland site is also adjacent to a freeway. latersum 635 to Garland is much t usier than I- 3SE at the proposed location, and it drives up the ambient noise levels. Peaks at the Goland location occurred during the operation cf shop equipment. The existing Plano location is not Isaated tear a freeway and consequently its ambient noise level way lower than the Garland site. Pea c noise levels in Piano also occurred during the operation of the shop equipment. Figure 1 illustrates the mechanics of sound emissions and the effect of noise buriers. It also shows how the difference in elevation between a predominate noise source and the noise recei+er can :elate to the effectiveness of a noise barrier. The placement and design of noise barriers a ust take into account both the behavior of the generated sound and the source that the barrier will acrually help in attenuating. While the actual amount of noise that can be expected to be mitigated is highly dependent on the precise location, a USDOT•FHWA manual, 'Fundamentals and i.batement of Highway Traffic Noise", shows that drops of up to IOdB an be achieved by a properly installbi and designed noise barrier well. No specific ranges are listed for trees, but it an be usumsd that while they would have a dampening effect, it would be somewhat less than the proposed will due to specific effects of wind, temperature, and ground reflection. Several specific measures are recommended to aid in mitigating the noise impacts from the proposed site. The proposed sound barrier wall and trees along the east property line should his effective at reducing the noise to a more acceptable level for the retidentisi tracts directly east of Its site, when combined with the sound dampening of some shop equipment. The residential uea south of the previously mentioned tracts is a greater distance from the noise generators, and thetefore should require toss extensive mitigation measures. The current plan to plant treat in the islands an the out side of the puking lot should improve the noise levels to a degree for the area not directly protected by the will. The completion of the expansion of the Meryps department store aVt future date should serve to attenuate noise directed out of the shop bays toward the residential tracks to the southeast to a degree. It should be noted that the height and type of Ices to be used at sach location is dependent on the topography and degree of noise attenuation required at each IM ion. v a I i ~ I i 1 eaH00sw vzat.oo tat j i ~ 1 1 I o 1~ A An' I Y 1WVO - SOUND ScURCL DiffsACtfA ` a mo ~sL 4 wa= I EFFECT of NolsF 9AARlERS I maw EFFECT OF FRa*AY FL4VAt10N ON NOfSE PATTERNS f~Gltl~~ 1 1 1 PROPERTY OWNER REPLY FORMS CITY COUNCIL IN FAVOR IN OPPOSIITION UNDECIDED Sitzmark, Inc. M. H. Hooper p. O. Box 26105 1216 olmos creek Fort Worth, TX 76116 Denton, TX 76205 Robby Scott 1504 San Gabriel Denton, TX 76205 Denton VII Joint Venture 4811 Broadway Dallas, TX 75248 A. L. Beevers 1516 San Gabriel Denton, TX 76205 Royce Weddle { 1512 San Gabriel Denton, TX 76205 i Robert Devine, Jr. 1509 San Gabriel Denton, TX J. Stanley Goodwin 1520 San Gabriel Denton, TX 76205 i property owners not on mailing list. Mr. 6 Mrs. Gerald Ricks 1413 Sandy Creek Denton, TX Bullitt J-jwry 1500 Angelina Bend Drive Denton, TX 76205 Dan and Carolyn"Cowaid Denton, TX I ~ 15 Reply Forms mailed p Z-PP-O lG✓ !aI 44 '6,4 z &l CI~~rEaF~ 4/201 -Aj OCI 1.75 Zfls33.8 3g4t r~7ZCb ryWO jinn c~brrEr i7r. 16~AW41 Ekxlwr~ +51o Pao fafmel . Pal" re 7G2af ~l/Z~-p! ~1i021tJ300 I~il!/ ~tc~b. Q. L, ~FI~JA^S l1(O tv, v oelvg fr 7114/01417'r, 1Glo/ a~~s • g 3cw~•rv+lov r7r2 u G, ~y ~xdere ><il2 yaw 4Aovjef I ~~Zd3 b o r~a~ ew 17tH 3Z 404 $rpm" `OJUbS r'~x , 752~/S . 104 P ,y c7 - 'aitii6,, Tx. -6001 Cr"~, p1wl~'G~ 4~ L4~ 8' r~ ►412 pusksvi ~ v, 4 ~`~pwis~e~ >or 6 /Poo l Pc,* *4 W . Fsb lslo~/ 4et* hdblvrel ~r 'Jas ~ /'T,r. ~L►Z01 i l r I I I I ~ . f *e Zo<Z I !l sotol too M A ,~,r lZII~ amcyiek 74p/ IZf Zb5 d ~lmZa~ A►1~aa~ J~ 3af{aylra flit aw!5 Oak Oeklvnr fir. Zip/ l3 2d5 g •34 it 300 14i'b amt Ci 6acl ih c1J, EcrNrGt9cL1 ~ a/u~ I f 1Ltvf i ! D n~ 39o~Df?oo xr~ Dtnl,no f5~9 <i~W EYo7y1LI ~lti ~7V1 r ! X, ?G?o/ IO~Z~3 L 3k03orK`o (J~o$ ~r~} ~w Ffos~s /~t, y I~wti-/e~,r~k /~rgti/~ ,rr. ?GttG ~ +~~Zl3G . !x'301400 ~itsrryt 17 ...~',,.,.,.c 1~i01 ~N C~~ 1s1 I I~CNrOf'111~'. ?~?er PO/tdOJ L ?irl D 8 o?aOD A11~'!~'t! ~H 5 W bGY~t 14r~ ti~ H~r►►~I 1~r 9uskH rx, 7G2or nk A , w 2A. w5or 046 (Iuq 44*,f Owh) 4m" 7r7;wfi ' v. V003 , 1-00M ! Rk A. W ~G 1601 W is nr. tiil-zlsNrk I►sc . 9,0. twc 26105 rr+ "4h 'i Tf 140110 I J r Minutes Planning and Zoning Commission October 26, 1988 ins. regQular meeting of the Planning and Zoning Commission of the City of Denton, Texas was held on Wednesday, October 26, 1988, at 5:00 p.m., in the Council Chamber of the Municipal Building. Present: Jim Engelbrecht, Ivan Glasscock, Judd Halt, William kamman, Etna kiker, and Fran Morgan Absents tuliae Brock Present from Statf: Frank Robbins, Executive Director for Ylinning and Development; Elisabeth Evans, Planning Administrator; Harry Persaud, Urban Planner; Cecile Carson, urban Plan- ner; Owen Yost, Urban P►+naer; Joe Morris, Assistant City Attorney; Jerry Clark, City Engineer; Rene Baker, Civil Engineer; and Donna Baker, Secretary vice-Climi man Judd Holt called the meeting to order. 1. Minutes. It was moved by Mr. Glasscock, seconded by ,si1an, and unanimously carried (6-0) to approve the minutes of the work session of September 21, 1988, r~ It wss moved by Mr. Glasscock, secoaded by Ms. Morgan, And unaalmoualy carried (6.0) to approve the minutes of the regular meeting of September 28, 1986. It was moved by Mr. Glasscock, seconded by Ms. Morgan, and unanimously carried (6-0) to approve the minutes of the regular meeting of October It, 1961. It. Consider making a recommendation to Add the Intensity calculations for study area 81 to Appendix A, Diatom Development Plan. STAFF REPORT. Mr. Pereaud stated that staff had presented at in earlier meeting trio working Intensity Map that was pre- pared by the Appendix A Task Force. He stated that be was Breseatimj study area gel sae part of Appendix A in the enton Development Plan. Area al Includes a rectangular sh+yd tract of land that is bounded by Univt n sty ~rire, JJ Collins. Road, Mingo Pishtrap Road, ■nd Cooper Creek Road, 1 Mr. Porieud said that the Appendix A Task Forte rocaesoads J adding to Appendix A of the Damson Development Plao. The Task force did recogaire that there was a large Acreage of light Industrial toatag En tho low latoolity area which tends to place the area above capacity to terms of intensity trips. III, Morgan asked it too Intensity would be reduced. Mr, Persmud said no ond that the Area II 107 percent over the intensity standard based on existing land use and 136 percent over based on the current Sontag. I DECISIONS Mr. Engelbrocht moved to recommeod approval of the boundaries. Seconded by Mr. Glasscock slid ua+a mously carried 16.0). Ili. Public Herrings. A. Consider making a recommendation on the petition of Pep Boys of California, Inc. reqquesting Approval of a do- tailed plan in an $listin Fleaned Dovolopmeat District (PD-6). the property to Incited on I•SSE In Son Jacinto Flat& Shopplmg Coatet Adjacent to Wolte'm Nun ory. It ■pproved, the property ms/ be utilized for an automobile service c titer and automobile parts store. Fifteen notices were mailed to property owners within 100 feet; one reply fora was received In in favor, $is reply forms were received in opposition, sad 3 reply forms were received to opposition that were not on the mailing list. 1 ~y E P7. ILL!Gf tictooer :6, ia9s Page 2 t SIAFF WORT: Ms. Carson stated that the petitioner, Pep Boys, was requesting approval of a detailed plan in the San Jacinto Center ,Lang I-)Sh on a 1.727 acre tract. She stated teat in 1969 the property was toned for planned developp sent. Planned development-6 includes residential multi-fully, cluster, and retail/office land uses. Several maendments have been requested and ap- proved. She said tnis petitioner was scheduled for public hearing on October 12, 1908, however, the ltes was removed from the agenda at the request of the petitioner. Ms. Carson continued that the property is located in a low intensity area according to the Denton Development Guide and is 51 percent over the intensity standard based on existing land uses and 169 percent over the standard based on current toning. She said that while the disppro- pportionste share of intensity policy was not applicaole Ia 1969, a disproportionate share of intensity was allo- cated by approval of the original planned development. Ms. Carson stated the proposal is for 13,160 square feet of retail, 1,730 square feet of bay service, and 2,S75 square feet of storage. She said that with the site of the facility, Pep Boys would be able to furnish repairs for up to ten vehicles ■t one time. Y Ms. Carson said the detailed plan meets the requirements of Article 11 of the Appendix B, Zoning, of the City 'of Denton Code of Ordinances. A screening doric•, a six foot solid conrretetnasohry fence, is proposed along the boundary of this site between tae site and tno adjacent residential property to the north. Ms, Carson stated that in addition to the six foot fence, trees would be planted along the screening device to further eliminate any note: from the automobile parts store and service center. Ms. Orion stated that staff had visited three other Pep Boys In the gotta lot and found one to be adjacent to a residential distrfct. In discussions with the surroun- ding neighbors, there were neighbors that did have cod- plaints about the business. She added one problem was that staff had viewed work being dome on cars outside the building. Ms. Corson stated that the detailed plan moots the land- + scape ordtnaace requirements. She said Iandse■ppiml is 1 provided throughout the tract and signals will iacluds one ground sill and will signs on three sides of the buildia` She continued that tbo neighborhood preserva- tion policy of the Oomton bovelopeout Guide may apply in this cue. Ms. Carson stated that son traffic problems have been eliminated by the ptoposals. In an effort to improve traffic circulation, tits detailed plain would eliminate one access to the service road. Stacking has boom pro- vided at entrance and exit points. Ms, Carson noted that part of the landscaping is located in the City's 10 foot utility easement located aloag the back of the pro arty. If, at any time, work was required to be done !a tga easement, it would be the responst- billty of Pep Boys or the owner of the property to replace u y trees that were removed. Ms. Carson added that heeause of the number of reply tares received in opposition, a 3/4 majority vote would probably bo necessary to approve the case by the City Council to be passed. She said for clarification that state statute requires that the City Council approve the toning toquest by a 3/4 majority vote it 20 percent of the immediately abutting property owners are In oppo- sition to a request. i 1 r YS: ~utls Uctooer :o, 19d9 Pare 3 Ms. Alker asked if Ms. Carson would clarify the require- aenes Eor access Ms. Carson stated there is currently an access [hat ties lnta the 1.35 service road just south of Wolfe Nursery. The proposed planned development would ea1nate chat particular access and there would be ar access furtner south. PETItIONIA: David Bird, 1122 W. Washington, CA, rep• reiene3nj pep BOYS, gave a short presentation on the operations and activities associated with pep Boys. Mr. Bird stated that auto parts would be available for the individual wno did not want to use the service center facility. Tom Orendain, Orendain Associates Inc., showed a slide presentation and stated that the petitioners have worked solution fongi thertrafficaproblem. feosaid thetd he did not want to cause problems but felt that since the Denton Development Plan was not In effect ■t the time of the applicatioa, the detailed plan was an excellent solution in Solrin$ roam problems. Mr. Orendain continued and said that the plan has pro- vldedfor Improvement to the noise that the surrounding ~eignbare were hearing from I-3S by proposin ■ 6 foot ,.tih concrete wall with 3t trees aloas the 3~0 feet of wall. IN FAVOR: George Weathersil, 2001 Bryan tower, said that re -WAS speaking for the company when stating that they were !n favor of the project, OPPOSED: Royce Weddle, 1511 Sa.i Gabriel, stated that he wrs ao adjacent neighbor and did not object to the auto parts store but did object to the Sera e, He stated that e was president of the Township It neighborhood assocl- h a non and the meigbborbood has held three meetings regarding thls project and are in opposition to it. He asked for all of those opposed to stand up. Approx• ism tel: tweet: people stood. Mr. Weddle stated that be had brought a tape recording of to impact wrench and the noise that is accompanied with it. He played the tape for the Commissioners. He added that the noise from the freeway was not as outstanding as the noise from the impact wrenches. These Impact wren- ehes would not only be used duties the day but would also be used at night and on weekends. Mr, Weddle asked the Commission to deny 9.11-016. Mr. Holt asked Mr. Weddle it the Bonin or the neighbor- head houses case first. Mr. Weddle said that some of the homes were already oxistlmg at the ties of the toaihs in 1969. Harold Harklas, 1105 Sandy Creek, stated that the tall currently has three service centers that are not next to residential areas and that are secluded from the rest of ter $ In theHarea aid felt thateifePop Be S wantedcto cen- into Denton then the petitioners should look at another area of tour.. i Billy Harkins, I403 Sandy Creek, stated that she felt the trees would not be able to block the noise that would be resulting from the service center. Bullitt Lorry, 1500 Anseliha Bend, stated that he takes nelghborhoad ppreservation seriously and the high level of nolaa should be considered by the Comatealomera before making their decision. J a r I it p0- lutes 'F Octauer :b, 148d Yale r Barbara Owens, 1720 Emery, said that she was not from the immediate area but felt that the Commission should also consider the lighting that may become a problem. for tre adjacent property owners. Shn said that the privacy factor would also beCCIS A problem for those that would like to have faeily gatherings or such in their backyards. RECOM14EhDAT10M: Ms. Carson stated that the trees that would oe w e along the concrete wall would be ever- greens. Sne stated that tae concrete fence that was shown in the slide presentation would need to be reviewed before allowing that type of fence. Ms. Carson stated that statt recommended approval with the following Conditions: 1. A ■ialaus sic foot solid concrete/masonry screening device betweea the site and adjacent residences shall be constructed prior to issuance of building permits for construction of the ■ala butldIng. 2. Landscapin shell be installed in accordance with Ordinance 1.101. Mr. Inlelbrecht asked if there were requirements for closin hairs for such business. Ms. Carson stated that j accordfnl to the Code of Ordinances, music, loud noises, etc. are not permitted between the hours of 10 p.m. and 7 a.m.. She add ea that staff had discusses the hours of operation with the petitioner. Tae Coaeissiom would be able to state that the bay doors be closed after a certain time Cad on weekends. i Ms. iiker asked what construction materials would be used for the buildinS. Hs. Carson stated that the project would be constructed with coacrete/essonry stucco appearlnl materials. j ~ Mr. Holt eskad why the property was bean= processed as a :octal case when it had already been coned planned do, relopsent. Mr. Morris stated that the planned develop- meat was created in 1969. However, one of the require- meats of the current ordlasnce is that a detailed pima be submitted for approval if the property has not been developed. He stated, therefore, the commission must sake a recommendation on the detailed plan. REBUTTAL: Mr. Birl stated that the petitioners tried to desilm the project to prevent the noise frog carrying over to the mellhbors. Me sta%*d that he felt it would senerate traffic but not as uncontrollahl• amount. He added that the hallo created would not be as much as the Doi$* &*aerated from the fro* vmy . The possible lllhttal problem o t by proper lighting that would not spill over to the neighbors. Ma. Morgan asked about outside repairs being conducted, as was stationed by staff. She asked if that would be occurring at this location. Mr. Bird stated that it is in violation of the store policy to be conducting busi- ness outside of the service cater mad should mot he done. Chair declared public hearing closed. DECISION: Mr, Halt stated he could see three problems wMtt6-3i proposal. Outside activities beta conducted, lilhtias, and the amount of hours opna At alghts and on the weekends. he stated that he felt it was a nice look- lal business but felt that there were other possible locations that it could be that would be better suited for this type of business. Mr. Molt stated that the project may not be as loud or as brilht as the neighbors had described, but if the oppo- nents were tight, it would be hard for them to have I FS: nutes Uctooer 6, 1988 Pate i to live with, de added that once the building is there, that it remains. Mr. Holt moved to deny Z•86-016. Seconded by i Mr. Entelbrecht and unanimously carried (6.0) to deny. B. •-Z••88.020. . Consider making a recommendation on the petUTon of Safety Lleen Corporation requesting an amendment to Planned Development-11 and approval of a concept plan on 14.0104 acres which expands Planned Development-l8 to 24.4 acres. The property is located at the southeast corner of Cooper Creek Road and the Texas and Pacific Nallroad and Mingo Road. The property is currently zoned agricultural and planned development industrial and more fully deccrlbed in the Moreau Forrest Surrey, Abstract No. 417. If approved, the property may be used for industrial uses. Thirty notices were sailed to property owners within 200 feet; six reply forms were received in favor and two were recsivet' in opposition, STAFF REPORT: Ms. Carson stated that the property was tone panned development on June 4, 1474, Ms. Carson stated the property is in a low intensity area and the area is 1 percent over the intensity standard for the area based on current land use and 36 percent over the intensity standard based on current toning. Ms. Carson said that based on the City's policy of proportionate $bare of intensity, when intensity In as area has already boom exceeded, then the prowled land use should be evaluated in reference to rho least in- tense, most logical land use for the property in the area. Ms. Carson stated that there are several public improve, seats that must be addressed before construction on the site, As. Carson added that the economic development policy of the Development Plan may be applicable. The policy Indicates that it the proposed use generates more than $1 percent of the business outside the City of Denton then the use may be considered under the policy. According to the information from Safety L1een Corp. about 99 percent of thm product w111 be directed or transported out of the city. Mr. Molt asked It landscaping would be required. Ms. Canon stated that a landscaping plan would be required with the detalled plan. Mr. Mike Cothran asked what the product of the coo any was, Ms. Carson stated it was recycling dry clesaimg and similar materials and stated that the petitioaort could provide additional Information. PETITIONER: Too Jester Jr., P.O. Box 280 Oentom, stated • was reppresenting Safety•ileen Corporation, He stated inn addittom would be for the employees of Salety•Lleon to bare a lunchroom and locker room and would also im- clude a warehouse for the coolany. He stated that the expanslom would create 70 • BO new jobs for the city. He added that the project would coat $15 million and would be entirely safe to the surroundtag neighborhood. Ms. Morgan asked what the operation at the company was. Mr. Glean, plant maasger, stated that the company takes i waste clash al aolvents, considered to hazardous waste, and processes It lm order to return the materials back to the field for use. Ne stated that the company is highly regulated by the state and the oxppanslon would help take care of F•wastes such as paint thinners and chlorinated solvents. i i s ,Moog, 4 1" i I i I I ' i i i i T r I 2516L/1589 NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR 711E PURCRASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR 771E EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WIIEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equip- ment, supplies or services in accordance with the procedures of state law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the E lowest responsible bids for the materials, equipment, supplies or services as shown In the "Bid Proposals" submitted therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, 711EREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the numbered items in the following numbered bids-Fr materials, equipment, supplies, or services, shown in the "Bid Proposals" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO. VENDOR AMOUNT 9918 1.2.1- C CWJjYM SYSTFA15 S 36.343.00 9918 4-13 _ (X1q`U00M SYSTEMS _ 27 9 0 9918 14 COMPUOCIM SYSTEMS 1.428.00 `9918 IS-19t f1YTItL! 11.629.00 21,22 -r 9 07T 1 9 I G 001F4 X30.000.00 f -9-9-2- V 2 111LL UTTER FAR[l 18.984.00 I ~ 3 FAVE DRAU5E DODGE 31 403.7 f SECTION II. That by the acceptance and approval of the above numbered -items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in S r I q !A 7 BID ITEM VENOOR AMOUNT NUMBER_ NO VF YDAUS f onGp t~ 3n2.'a DA q4?b _ - C 12,131-95 9924 3 MV F? KRAU S E I)cwi,' DAVE KRAUSE I)CfXAP S 10,948.40 992.4 6 2 RILL UTTFJt I.OFU) S 12,519.0n 9924 S !8,023.00 BILI. UTTFR,FCRI) 9924 8 BILL UTTER FCIRI) $ 21 , 091.00 9924 9 1 BILL UTTFR rau) $168,072.00 9925 2 BILL UTTER FO-kn S121,446;00 9925 i - r N k , I accordance with the terms, specifications, standards quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION III. That should the City and persons submitting approve and accepted items and of the submitted bids wish to enter into a formal written agreement ns a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified r~ sums contained in the Bid Proposal and related bid documents herein approved and accepted. SECTION IV. That by the acceptance and approval of the above number-R-TFemn of the submitted bids the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized herein. SECTION V. That this ordinance shall become effective ` immea ati~ely upon its passage and approval. PASSED AND APPROVED this day of , 1989. f I RAY-STEPFEW, '.',AYE - ATTEST: jFNRIFEK RWAETER9,CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCII, CITY ATTORNEY BY: _ PAGE TWO I S fl DATEt JANUARY 17, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: BID# 9918 - PERSONAL COMPUTERS (PCs) AND SOFTWARE RECOMMENDATIONS We recommend this bid be awarded to the lowest bid er meet ng specification as listed below. 1. Section A Item 1,2&3 to CompuCom Systems in the amount $36,343.00 2. Section B Item 4-13 to CompuCom Systems in the amount $27,951.00 TOTAL $64,294.00 i 3. Section C Item 14 to CompuCom Systems in the amount $ 1,428.00 -1 Item 15-24 except 2003 to ENTRE' Computer in the amount $11,629.00 Item 20&23 no requirement at this time TOTAL AWARD SOFTWARE $13,057.00 GRAND TOTAL AWARD $77,351.00 ~ I SUMMARY: This bid is for the purchase of personal computers, optional equipment and software. This group is a culmination of the PCs and software packages approved during the budget process for the various departments. As you can tell, there are numerous combinations of hardware and software. The Data Processing Advisory Board has been presented this bid package and tabulation and had no objection to the purchase of this I` equipment. Minutes of the December 15, 1988 meeting are attached. You should also note, these prices are firm for 6-months should additional hardware or software be required. ` BACKGROUNDt Bid Tabulation, Minutes of Data Processing Advisory Board December 15, 1988 PROGRAMS, DEPARTMENTS. OR GROUPS AFFECTEDt See Schedule A i _ FISCAL IMPACT: 1988/89 Budget Fund as indicated on Schedule A Respect ly submitted: Lloy arrell City Manager F `P _red l~rs, Name: Tom D. Shaw Titles Assistant Purchasing Agent i ;;rovLd s h J. Marshall tl Purchasing Agent 002.DOC I V r r 3 I 1 I I k I I i DID 4 9916 1 1 1 1 I 1 I I ! ................I I i I I I I I 1ID TItLE COMPUTERS I OPTIONAL EQUIPMENT I ENTRE' I IBM 1 UNIVERSITY I COMPUCOM I CPC i BASK 1 HEATH I MICkO CITY I I COMPUTER I I COMPUTER I SYSTEMS I I COMPUTER I ZENITH I IRYIKB, TI I OPENED DECEMBER it 1988 I CENTER I I STORE I I I I 1 I I 1 ! ! I I I 1 I . ACCOUNT I I I I 1 I 1 I ....•-.I.... ...........•I.............. 1 L........_....I- 4 I Illy I ITEM DESCRIPTION I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I I I I.............. I ..............I I I I I I f I I I I I 1 i I IS£CTiON A i I 1 1 I I I I 1 ! I 1 I I I 1 I i I I 1 I 9 I MODEL 30 1 1,813.00 1 10661.00 ! 11224.00 1 1,769.00 1 11574.95 1 11777.56 1 3,120.00 1 699.00 1 2 1 3 1 MODEL 50 1 20995.00 1 2,941.00 ! 3,300.00 1 21114. Do 1 1,895.99 1 21963.76 1 1 10369.00 1 3 I I t MODEL 90 1 5,934.^0 1 5,157.00 1 6,476.00 1 5,9IO.00 1 21495.00 1 51046.75 ! 1 31985.00 i I 1 I I I I I ! I I I 15ECTIOK 1 I I I ! I I I 4 ! j i I I I I I I I I I I ! 4 1 1 MEMORY MODULE KIT 1 150.00 1 113814151 1 160.00 1 150.00 1 150.00 t 118.35 1 1 NO BID I 5 t ! MOUSE PC 1 69.00 1 1631169 1 70.00 1 68.00 1 89.00 1 68.31 ! 1 79.00 1 6A I I MONOCHROME MONITOR 181N1 1 192.00 I 160.00 1 199.00 1 176.00 1 Mt. 1 109.75 1 180.00 1 89.00 1 60 1 1 COLOR MONITOR 8512 1 435.00 1 W.00 1 440.00 ! 426.00 1 NO DID 1 429.87 1 630.00 1 233.00 I 6C I I COLOR MONITOR 8513 1 52440 1 438.00 1 555.00 ! $13.00 1 348.00 1 517.50 1 1 395.00 1 60 1 1 COLOR MONITOR 8514 1 1,136.00 1 992.00 1 11139.00 1 11114.00 1 749.00 1 11121.25 1 1 385.00 I 1 I I EMULATION CARDINORK STA. CONT.1 380.00 1 780.00 1 440.00 1 696.00 1 1714.481733.62 1 995.00 1 NO 13 1 j 8 I I ENHANCED KEYBOARD I INCLD. I INCLD. 1 45.00 1 ND CHARSE I INCLD. I INCLD. I 1 74.00 1 `F 9 I 1 3 112 DISC DRIVE 1 179.00 1 INCLD. 1 75.00 1 175.00 1 125.00 1 169.03 1 1 99.00 1 l0 I 1 2005 NAPO DISC I NOT AVAIL I INCLD. 1 215.00 1 235.00 ! 259.00 1 NOT AVAIL. 1 1 245.00 1 11 I 1 4008 HARD DISC I NOT AVAIL I INCLD. 1 299.00 1 360. D0 1 459.00 1 NOT AVAIL. 1 1 379.00 1 12 I 1 60MI KOO DISC 1 NOT AVAIL. I INCLD. 1 530.00 1 1,310.00 1 595.00 1 INCLD. 1 1 695.00 1 13 1 1 EPSON 1050 PRINTER 1 740.00 1 RD BID 1 550.00 1 750.00 1 11149.00 1 792.85 1 560.00 1 779.00 ! I I I I I I 1 I 1 I I 1 i E r r rl I M i. i I I I 1 I I I BID 1 4416 1 1 1 1 1 I I 1 ! I iI I 1 . I I ! BlD TITLE COMPUTERS > QPTIONAL EDUIFMENT I ENTRE' I IBM I UNIVERSITY I CDMPUCOM I CPC I BASIC I HEATH I MICRO CITY t I COMPUTER I I COMPUTER I SYSTEMS i I COMPUTER I ZENITH I 1RVINS, 71 1 OFENED DECEMBER S, 1988 1 CENTER I I STORE I I I I I I 1 I I I i 1 I I I ACCOUNT 1 I 1 I I I I i . , 1 .__....i..__....` .............................................11............__I I 1 1 PAR...L.•_Y:NDDR...4............ ....I------VENDOR ....11--- VENDOR -VENDOR ---------II... VENDOR . VENDOR .......C... VENDOR . 1.. 1 . BTY. I....-- ITEM DESCRIPTION ----I... VEN.-.....`.............. I ISECTION A ! I I I i 1 I I I 1 1 I I I I I I I I I 4 I MODEL 30 1 !,513.00 1 2,661.00 1 11224,00 1 1,164.00 1 11511.95 1 1,777.58 1 39120.00 1 699-DO I 2 1 3 1 MODEL 50 1 2,445.00 1 21441.00 ! 31306.00 1 21934.00 1 1,945.94 1 21463.78 l 1 10369.00 1 3 1 2 1 NO DEL 80 1 51934.00 1 59737.00 1 61116.00 1 5,910.00 1 20495.00 1 5,646.75 1 I 3,465.00 I I I I I I I I I I 1 I 1 I 1SECTION B I 1 1 I 1 1 1 ! I I I I I 1 I I I 4 1 1 NENORY MODULE KIT 1 1560.00 1 1138l415I 1 160.00 1 ISO.00 1 150.00 1 149135 1 1 ND BID 1 5 1 1 MOUSE PC 1 64100 1 4831169 1 70.00 1 68.00 1 84.00 1 60.31 1 1 14.00 1 6A I I MONOCHROME MONITOR MINI 1 192.00 1 160.00 1 149.00 1 176.00 1 1NCl. I 184.15 1 00.00 1 99.00 1 68 1 1 COLOR MONITOR 8512 1 435.00 1 301.00 1 440.00 1 426.00 I NO BID 1 424.87 1 630.00 1 233.00 I 6C I I COLOR MONITOR 9513 1 524.00 1 430.00 1 555.00 1 513.00 1 344.00 1 $17.50 1 1 395.0 1 6D I I COLOR MONITOR 0514 I 11136.00 1 992.00 1 19134.00 1 1,114.00 1 749.00 1 11121,25 1 1 365.00 1 7 1 1 EMULATION CAADINORK STA. CON1,1 388.00 1 780.00 1 440.00, 1 696.00 1 1714.481733.62 1 995.00 1 NO BID I B I I ENHANCED KEYBOARD I INCLD. I INCLD. 1 45.00 1 NO CHARBE I INCLD, I INCLD. I 1 79.00 1 9 1 1 3 112 DISC DRIVE 1 179.00 1 INCLD. 1 75.00 1 175.00 1 125.00 1 169.05 1 1 94. D0 I 20 1 1 206 "RD DISC ! NOT AVRII. I INCLD. 1 215.00 1 235.00 1 259.00 1 NOT AVAIL, 1 1 245. 0,0 I II 1 1 40NO HARD DISC I lCt AVAIL I INCLD, 1 299,00 1 360.00 1 459.00 1 NOT AVAIL 1 1 379.00 1 12 1 1 6060 HARD DISC 1 NOT AVAIL. I INCLD. 1 530.00 1 11310.00 1 545.0,0 I INCLD. 1 1 645.00 1 13 1 EPSON 1050 PRINTER I 740,00 1 NO BID 1 550.00 1 750.00 1 1,149.00 1 792.95 1 560.00 1 174.00 1 1 I I 1 ! I I I ~ i 1 1 1 L ~ f I !SECTION C I I I I I I I I I I i 1 i I I I I I 14 1 1 HS 3.314,0 1 102.00 1 105.00 1 95.00 1 102.00 1 14CLD. 1 103.50 1 1NCLD. 1 95.00 I 15 I I LCILS 123 1 306.00 1 317.00 1 299.00 1 321.00 1 278.95 1 306.70 I 396.00 1 279. DO 1 !b 1 I DISPLAY WRITE 1V 1 260.00 1 322.00 1 299.00 1 263.00 1 315.00 1 272.25 1 NO BID i ' 11 I I WORD STAR I 259.00 I NO BID 1 125.00 1 259.00 1 249.95 1 272.25 1 371.00 1 249.00 I IB I ! WORD PERFECT 5.0 1 202.00 I 40 BID 1 135.00 1 215,00 1 239.95 1 281.50 1 371.00 1 239.00 I l9 1 ! 10105 FREELANCE 305.00 I NO BID 1 321.00 1 331.00 1 329.95 1 321.75 1 396.00 1 369.00 1 20 1 ! HOWARD BUSINESS GRAPHICS 1 277.00 1 NO BID I 69.OD 1 224.00 ! 271.95 1 297.10 1 1 269.00 I 21 1 1 AUTO CAD 1 21250.00 1 NO BID I 2,200.00 I NO 010 1 NO 110 1 21160.00 1 21600.00 1 NO BIB I 22 1 1 DM TOP I'MISHIWS 1 445.00 1 1557 0 169 1 NO BID 1 519.00 1 459.95 1 $16.75 1 $97.00 1 469.00 I 23 I I MCP VER. 141 1 NO BID I NO BID I NO BID I NO BID I NO BID 1 321.70 1 1 NO BID 1 24 1 1 D BASE IV 1 472.00 1 NO BID 450.00 1 NO BID 1 474.95 1 $51.75 1 591.00 1 399.00 I i I I I I I I I I I I I 1 l I I I I I I I 1 IDELIVERY 1 7-10 DAYS 1 1-9 WKS 1 30 DAYS i LO DAYS 1 30 DAYS 1 11 DAYS 1 14 DAYS I ! I I I I FOB DENTON I FOB DENTON I FOB DENTON I FCB DENTON I FOB DENTON I FOB DEN70N I t 1 F I I I I I I I I I I I' l'. 1 e MINUTES OP DATA PROCESSING ADVISORY BOARD MEETING DECEMBER 15, 1988 Members Presents Jim Kuykendahl, Dale Maddry, Charles Ridens and Ronald McDade I Members Absents Cengis Capan Others Present: Gary A. Collins, Monte Mercer and Tom Shaw and Ernie Tullos from the City Staff. Jim Kuykendahl made a motion that the minutes from the August 9, meeting and the September 12, meeting be approved. Charles Ridens seconded the motion and it was approved unanimously. f Gary Collins explained that policy and procedures for acquiring personal computers was changed to allow the various departments to rank their j personal computer needs as part of their department's budget request, with this change 16 personal computers were approved during the budget process for the various departments. This year, we took all of these requests and went out with one bid for all 16 personal computers. In reviewing the bid responses, we rejPrled one vendors due to maintenance capability which consisted of sending the PC back to the vendor with a minimum of 3 days turnaround and a maximum of 60 days turnaround. Other vendors were , rejected due to lack of compatibility with current equipment and not meeting specifications. The major specification not met was the micro Channel capability. Ron McDade ask why a Micro Channel was required. Gary Collins explained that it was his understanding that the Micro Channel would be needed if we ever decide to go to the OS2 operating system. Ron McDade ask if that did not exclude everybody but IBM. Gary Collins said, i it effectively did on this bid since no other vendor bid equipment with this feature. Ron McDade stated that going to OS2 was an entire different project and you would not go to 092 unless you are trying to network or want a lot more capabilities. Ron explained that the OS2 is an operating system that will be used on large machines that have a large amount of disk or will be performing network processing. Dale Maddry ask if the Board had not worked on a standard configuration and arrived at a configuration. Gary Collins responded that the Board had described a minimum configuration but was his understanding that the departments could add optional features to this minimum configuration. Gary Collins stated that the minimum configuration with some highly recommended options had been brought back to the Board. Gary Collins indicated his understanding was that we would have a minimum configuration that would allow any department that desired a personal computer could get one. Gary Collins also stated that each department could choose the optiono they needed to meet the requirements of their area or department. 4 Dale Maddry ask if we were looking at different considerations for I o. i different departments. Gary Collins responded that we were as shown by the 1 prices varying from $3,700 to $120000. Dale ask what part does the Datt Processing Department play in this. Gary Collins responded that the Data Processing Department played more of a consulting and coordinating role. Jim Kuykendahl ask why so many computers were being purchased without printers. Gary Collins responded that this was in the Utility area and it was his understanding that they would be switching the current printers between PCs. Ernie Tullos stated that the Utility Department was planning on acquiring a Laser Printer. Thu Board discussad the problems associated with sharing printers even Laser Printers when doing Graphics. Jim Kuykendahl ask if networking was planned for each department and if a long range plan had been developed to address this area. Gary Collins responded that the whole networking question needs to be examined from a business needs point of view and addressed during the next budget process. The Board discussed the relative merits of establishing networks In light i of the near capacity processing of the mainframe. i Dale Maddry stated he felt that this Board really did not need to make decleions about PCs the Department have requested and must rely on Gary f Collins and the various Department staff members for justification. Gary Collins ask if there was a motion to be made? Dale Maddry made a motion that the Data Processing Advisory Board had no objections based upon the recommendations of the various departments and the Date Processing Department. Jim Kuykendahl secund the motion and it I passed unanimously. There being no further business the meeting was adjovrnedl I I I J I 1 SCHEDULE A i FER30NAL COMPUTERS DEWIMENTIDIV1S10N TDIIA'. UTILITY ADMINISTRATION 15,542,00 810 080-0250-4229 ENERSY CONSERVATION 13,777,00 610-000-0257-9229 ELECTRIC ADMINISTRATION 15,091,00 610-080-0251-9229 ELECTRIC ENDINEERINS $12,272,00 610-000-0250229 HATER EN51NEERIND $0,905.00 623.000.0463-9103 NAIEWENER Flo SERVICES 14,792,00 620.091.046141D3 { PERSONNEL 14,600,00 100-035-0008-9103 i FIRE DEPARTMENT $4,545,00 100-080-OD50-9103 i CITY AITDANEY $4,400.00 100-010-0004-9103 ACCOUN11N5 2 19,092, DO 1 FINANCE AOMINIS1RA1ION $4,921.00 CUSTOMER SERVICES 2 19,072,00 100-040-0022-9103 TOTAL f11,321.00 I LJ t i n SCHEDULE B PERSONAL COMPUTERS DOS LOTUS WORD WORD FREE HAROVARD DSK7DP AUTO TOTAL DEPARTMENTIDIVISION 4.0 123 DW4 STAR PERFECT LANCE BRAPNICS PUB CAD DBASE IV SOFTWARE UTILITY ADMINISTRATION 102 308 260 305 445 1,418 ENERBY CONSERVATION 102 306 260 660 ELECTRIC ADMINISTRATION 102 308 260 305 923 ELECTRIC ENSINEERINB 102 306 260 305 21250 472 31695 NA1EP ENSINEERIN8 102 306 400 WAIERISEWEA FLD SERVICES 102 306 260 68B PERSONNEL 102 306 202 610 FIRE DEPARTMENT 102 306 259 667 CITY ATTORNEY 102 308 202 610 'n,CUNTINS 2 204 612 520 11336 FINANCE ADMINISTRATION 102 306 260 660 CUSTOMER SERVICES 2 204 612 520 11336 TOTAL 1,428 4,284 2.600 259 404 915 O 445 2,250 472 13,057 i i i 1 I c r S i f SCHEDULE C FERSONAL COMPUTERS MODEL MODEL MODEL ADD 20M2 DISP i~ DEPARTMENT/DIVISION 30 50 80 MOYITOR MEMORY PRINTER DISK CD J27D TOTAL MOUSE MODEM 3EWL 270 TOTAL RE U11L11Y ADMINISTRATION 21934 426 68 64F 11121 ENE 7Y CONSERVATION .11769 426 ISO 66 696 3,i09 ELECTRIC ADMINISTRATION 21934 421 ELECTRIC ENSINEERENG 5,810 1 139 6B 696 4,124 ~ 864 68 698 8,5?7 WER ENSINEERINS 51816 1,139 864 68 646 8,517 NATERISEWER FLD SERVICES 21934 426 FERSONNEL 11169 513 150 750 68 696 4,124 FIRE DEPARTMENT 200 696 4 016 ;1784 513 150 50 696 310-8 CITY ATTORNEY , 513 150 7 )5G b96 7,818 ACCOUNTING 2 34539 1,026 790 10560 FINANCE ADMINISTRATION 11764 513 l% 750 235 1,392 T1)56 CUSTOMER SERVICES 2 3,538 11026 346 t 500 ?d0 d96 4,303 j 1,342 717dl. IOTAI 151421 6,802 11,620 8,086 11354 61000 235 11728 408 400 41744 6412c4 I j i i a i h r DATEt JANUARY 17, 1989 CITY COUNCIL REPORT TOt Mayor and Members of the City Council FROMt Lloyd V. Harrell, City Manager SUBJECT: BID# 9923 - TREE SPADE TRANSPLANTER RECOMMENDATION: We recommend this bid be awarded to the low bidder, item one, for a re-manufactured tree spade as specified at $30,000.00 from Big John. SUMMARY: This bid was sent to several vendors and we received only three bids, one as an alternate (Dan Guest). The alternate would need extensive repairs on both the spade and the truck, we feel the best buy is the re-manufactured unit mounted on one of our trucks as recommended above. The trailer mounted is a lighter unit and we feel is not adequate for our use. l { BACKOROUNDt Tabulation Sheet, Memo from Bob Tickner. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTEDt The Parks Department tree planting program and the citizens of Denton. FISCAL IMPACTt There is no additional impact on the General Fund. Res e p ulYy sub wtedeLloy Harrell City Manager Prepared byt Ad iV J. MARSfiAI►. itle Pl1RC?WS1NG AGENT P.pproved t Ne I Jd t4 -Z I. MARSHA!. , " I'LPQ 1A51 NG AGENT 9 e. , 1 1D n 0§CVeeafton J J CITY of DENTON, TEXAS Clvfo Center/ 321 E. McKfnney/ Denton, TX 7620f 1 M E M O R A N D U M I~ + TO: John Marshall, Purchasing Agvnt ' FR081 Bob Tickner, Superintendent of Parke i DATE! December 22, 1988 SUBJECT: Recommendation on Tree Transplanter Bid 19923 We have reviewed bids from three sources for the purchase of a 78' tree transplanter or alternate bide supplied. we wish to recommend the bid of Big John Tree Transplanter, Inc. of Arlington, Texas, in the amount of $30,000 for a re-manufactured 781 tree transplanter mounted on a city-owned truck. Alternate bids were received for a new 78• spade by Vermeer, Inc. In the amount of :39,715.00. An alternate bid was received from Dan Guest of Pilot Point for a 1979 Ford 8000 truck and 680 spade In the amount of $29,500. Evaluation of the Dan Guest bid determined extensive repairs would be required ` to equal the factory warranted re-manufactured big John bid. Also, the Ford truck is a gasoline engine with a 16 speed manual transmission which may produce excessive maintenance costs over the City-owned diesel engined and Allison automatic transmission truck. Please feel free to request any additional information necessary to proceed with requesting Council approval. i z 1'. v Robert e.f~ickner MEM02639 i ' e/Yrlto~rtzl COal~l l e ua ~l 0 Denton ParAs and Recreall in / Denton, Tsifea / (017)""270 J I r. Y 1 "r r• I I i BID 1 4423 1 1 I 1 1 BID TIKE TREE SPAGEITFANSPLFNTE-A Bit JOHN I DAN 6UE6T I VEMEER I - I 1 I I DPENE➢ 12161BB I I i I . 1 I I I FCCOUNT 1 I I I ~ --------------------•---..----..1•----....-----I------------- I I 1 I BTY I ITEM DESCAIPTION I VENDOR I VENDOR I VENDOR I I- ° 1•-----• .........................1.._..-----_...1.._.._........I-------•....._1 1 1 I 1 I NEW I 1 1 1 IREMANUFACTURED I 30,000.00 I I 34,115 00 I I I I I I 1 2 1 1 ITAAIEER MOUNT I 33,800.00 1 I 16,000.00 1 4 1 1 1 1 I 1 1 I 1 FOB-DENTON I FOB-DENTON I FOB-DENTON I I 1 I I I I 1 I 1 10-DAYS 1 1.2 DAYS I 43-DAYS I f ! I I I I I ~ I I I i i I ~ 1 1 I I i i I thTERNATE USED 6' 1914 FORD I I I I I 1800 816 JOHN 310 ENSINE ! 24,300 00 I i 1 I I I 1 i ' ! I I 1 f I f I I I I I I j J 1 i I 1 . J a z s DATE- JANUARY 17, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM- Lloyd V. Harrell, City Manager SUBJECTt BID# 9924 - VANS, PICKUPS AND TRUCKS RECOMMENDATION: We recommend this bid be awarded to the lowest bid meeting specification as follows- Item 1 See Bids Rejected-to be rebid 2 1-1/2 Ton Pickup 4WD Bill Utter Ford $12,984.00= $12,984.00 3 3-1/2 Ton Pickup LWB Dave Krause Dodge $10,468.49= $31,405.47 4 2-3/4 Ton Pickup LBW Dave Krause Dodge $11,652.75= $23,305.50 5 1-3/4 Ton Van Dave Krause Dodge $12,131.95= $12,131.95 6 1-3/4 Ton Cab/Chassis Dave Krause Dodge $10,948.40= $10,948.40 7 1-1 Ton Truck Bill Utter Ford $12,519.00= $12,519.00 8 1-20M GV-' Cab/Chassis Bill Utter Ford $18,025.00= $18,025.00 9 1-25M GVA' Cab/Chassis Bill Utter Ford $21,091.00= $142,410.32 SUMMARY: This bid is for the purchase of Vans, Pickups and Trucks for I various departments of the City of Denton. The list includes 7 motor pool replacement vehicles and four fleet additions for Municipal Lab, Electric Production, Water Metering, and Wastewater Treatment. I BACKGROUND- Tabulation Sheet PROGRAMS DEPARTMENTS OR GROUPS AFFECTED: Fleet operations, Municipal Laboratory, Electric Production, Water Production, Electric 1 Distribution, Water/Sewer Field Services, Wastewater Treatment, and 1 F Water Metering FISCAL IMPACT- These vehicles will be funded from 1988-89 budget accounts and motor pool replacement funds. 1 Respect ly submit edt Lloyd arrell , City Manager P~red~ Name- Tom D. Shaw Title- Assistant Purchasing Agent j { Aa 1 Agent 002.DOC ri r~ 1 i ?101 9924 i I I BID TITLE PANS, PICKUPS I TRUCKS I 1 l ; - _ _•__•.I DAVID KRAUSE I BILL UTTER I OPENED JANUARY 5,_1489 I D006E I FORD l .................I I i { ACCOUNT 1 l I I - • - I___... I ....I. I I 1 I I DTY I ITEM DESCRIPTIDM I VENDOR I VENDOR I _.1_.....__.I I.............. I.............. I I I 1 1 _ I 1 1 2 IMIMI•YAM i 12,193.00 I I I I I I I 2 I l 1112 TON PICKUP 1•MD I 13,063.43 1 12,981.00 "1 I I t I 1 3 1 3 1112 TO PICKUP LMB I 10,168.19 , I 11,013.00 I I I I I I 1 2 13 14 TON PICKUP LMB 1 11,652.15 -1 11,132.00 1 1 1 1 1 1 1 S 1 1 1314 TON VAN l 12,131.95 1 12,6$2.00 1 G 1 I I I I 6 1 l 4311 TON TRUCK CAD/CHASSIS I 10,916.10 --I I I I I I i T 1 1 11-TON TRUCK CABICHASSIS 1 12,181.90 1 1,11514.00 4, I i 1 i I I I ITRUCK. CAB CHASSIS 20000 BVM I I 16,025.00 ~f I 9 I I ITRUCK CAB/CHASSIS 25000 6VN 1 1 21,041.00 T 1 I I I i I 1 1 90-120 DAYS I 45-60 DAYS I 1 I 1 11141 90-120 DAI I I i I I I I I I 1 l I I i i 3 I 1 1 I ~ I I i I 1 749 I z, r k a r DATES JANUARY 17, 1989 CITY COUNCIL REPORT TOs Mayor and Members of the City Council J FROM: Lloyd V. Harrell, City Manager 11 SUBJECT: BIDN 9925 - POLICE PATROL AND CID SEDANS RECOMMENDATION: We recommend this bid be awarded to Bill Utter Ford. i Item 1 12 Police Patrol Sedans $14,006.00 ea, = $ 168,072.00 Item 2 9 Police C.I.D. Sedans $13,494,00 ea. _ $ 121,446.00 TOTAL BID AWARD $ 289,518.00 j SUMMARY: This bid is for the purchase of automobiles for the Po- a Department. The quantities are normal fleet exchange quantities with one addition to the fleet. We only received one bid in reply to our bid request sent to four prospective bidders. Chrysler Corporation is no longer in the police car business. This I eliminated both Dodge and Plymouth from bidding. For some reason, i Chevrolet failed to return a bid for the requirements listed. To insure that the single price quoted was fair and reasonable, I contacted the City of Mesquite, City of Carrollton, and the State of Texas contract prices. The lowest price for a Chevrolet was + $13,882.00, and the lowest price for a Ford was $14,449.00. These prices are for automobiles that closely follow our specifications. I BACKGROUNDS Tabulation Sheet PROGRAMS, DEPARTMENTS OR GROUPS AFFECTEPs Vehicle Fleet Operations and Police Department FISCAL IMPACTs This purchase will be funded through a lease , purchase program and paid from budget funds over a period of 36-weeks. Respect ly submitted: Lloyd Harrell City Manager P ar~b s Names Tom D. Shaw Titlet Assistant Purchasing Agent i A roveds. ameS ^hn J. Marshall itles Purchasing Agent 002.DOC 74 4 y y r ~ .n 14 I ! 1 AID t 9925 1 1 1 AID TITLE POLICE AND 4 DOOR SEDANS I I 1 I DAVID KRAUSE I RILL UTTER I OPENED JANUARY Sy 1989 I DDDSE I FORD I 1 k I ACCOUNT 1 1 I l J -------.-•-__._.__--_...--•--••I I I I----•-------..I ~ i I 1 t ! OTY I ITEM DESCRIPTION i VENDOR I VENDOR I i 3 I I 1 t I 12 (POLICE SEDAN I RD AID I 19,006.00 I 2 1 9 (SEDAN I ND AID I 13 999.00 I i S I I I I I I ` T I 1 1 60-90 DAYS I I I I I I l T 1 I 1 I I I I ! T I I I ~ 1 3 ! I I II I I 1 ! S i I I 1 1 I I I I I 4 f - ME= 11-1-111.10 rTT= G i ~ tl ~ I I i i i II f i a rA R 1 2516L/1589~ NO. All ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AND OV PROVIDING PROVIDING OF PUBLIC FUNDS THEREFOR; IMPROVEMENTS AWARD EXCONTRACTS PENDITURE FOR FOR FOR TI 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 lceived and bidsdforathe h onstructionsof the b ublicrworks or improvements described in the bid inv+tation, bid proposals and plans and specifications therefore; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: j SECTION I. That the following competitive bide for the construction of ~ublic works or improvements, as described in the "Bid Invitations"Bid Proposals' or plans and specifications attached hereto are hereby accepted and approved as being the lowest responsible bids: BID NLINBER CONTRACTOR AMOUNT I REP 9902 MLP.Y AND OoWARD ui Q ICAL. 1f4C. t39no465_00 SECTION II. That the acceptance and approval of the above competitUve EM shall not constitute a contract between the City accepted construction of such public and works the person improvements submitting herein bid for person shall comply with all requirements specified in the Notice to Bidders including the timely execution of written bonds contract and furnishing of performance and payment notification of the award of the bid. I I I I i t s SECTION Ill. That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the 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 compet t ve ds 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 amou.,t as specified in such approved bids and authorized j contracts executed pursuant thereto. SECTION V. That this ordinance shall become effective immealately upon its passaRP and approval. i PASSEL) AND APPROVED this the day of , 1989. , I E ~FXY`g7'EPFi~S;'~AY0A t ATTEST: JENNUIERF-WAl.TERS9 CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCN, CITY ATTORNEY BY I i ' i i ~ PACE TWO 6 DAT.e JANUARY 17, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the Ci'_y Council FROM: Lloyd v. Harrell, City Manager SUBTECTi RFP# 9902 - HVAC RENOVATION RECOMMENDATION: We recommend the award of this projeci; be made to the e%aluated lowest and most responsive contractor, Burley Coward Mechanical, Inc. {BCI), Denton, Texas in the amount of $390,465.00. SUMMARY: This project is for the renovation of the heating, ventilation and air conditioning (HVAC) for the Municipal Building, Civic Center, Senior Citizen Center, and the Library. The cc3t for gas utility line extension has been deleted since Lone Star Gas has a?resd to pick up this cost of $12,188.00. The new proposed chilled water loop to the newest portion of the Library has also been deleted in the amount of $31,165.00. This loop was not cost effective since energy efficient heat pumps currently are in use. The dollars generated by these deletions will be Utilized to upgrade the system as proposed and for contingencies as they arise. { BACKGROUND: Memorandum dated 11/17/88 from Steve Brinkman to Betty McKean presented to Council at a previous work session November 22, 1988, as backup to a presentation. h PROGRAMS, DEPARTMEN'3'S OR GROUPS AFFECTED: Those affected by this project are the various departments and groups using the specified buildings and the Building Operations Department whose responsibility it will be to maintain the system. FISCAL IMPACT: The project is scheduled for a 10-year payback utilizing funds generated from energy savings. The affected departments will contribute funds from their line item budget based on the projected savings for each department. i ResGZ/fu/l/ly sub ittPds A' u Llo Harrell City Manager Prepared byp N '2"~--' L--zF Names Titles A prov Nam GTitles 002.DOC I 6 Y I V ion AD Or I M ea ion CITY of DENTON, TEXAS Clvfc Center/ 32 t E. MCKlnney/ Denton, TX 1020 I M B M O R A N D U M - T0s 'Betty McKean, Executive Director for municipal services and economic Development IROMS Steve Brinkman, Director of Parks and Recreation I! DJ1TBt November 17p 1980 i SUBJECTS MVAC Renovation f We would like to present the three qualifying bidders for the RVAC renovation of the city Ball, Civic Center, Library, and senior citizen Contact This program will completely renovate the existing above-ground system and put It In a like-new condition. It will also provide an energy management system to help control the environment of all four buildings, thereby saving utility i costs and providing our crews instant maintenance Information which will help to lengthen the life of the equipment. Of the three bidders, we would like to recommend Burley/Coward for consideration. They are a Denton firm that could respond quickly to our needs. They have guaranteed a $64,000 utility savings on our current system which will allow the City to go out and sell bonds that would be paid back annually with that !61,000 savings, it would take approximately 6-10 years to pay back the principal and interest. Steve Brinkman I MBM02596 Ii I ~ I t, t~:~- 1 _~/1~~rlin~lnl. ~n~~!r~llerlr7l ~r~fart~ 006 'S' denlonPeAsendArcreeNon / Denlon, Texei / fef7llfas•d~~TO i. Y Ito Ii I i PRESENTATION HVAC MODIFICATIONS FOR THE MUNICIPAL DOWNTOWN COMPLEX o Explain Basic Modification/Locations G City Hall o Civic center G Library o Senior Center Top. three contractors (Burley/Coward, Honeywell, TD Bervice3) Submitted Cost Estimate TDS BCI HONEYWELL 1. not water heating systems 361154 !127,731 $4910646 2. Library Central System Tie-In 120660 310165 11,340 3. Additional Air Handlers and Zoning 53,050 240420 22,960 4. Test and Balance All Buildings 9010 8,578 36,640 S. Central Plant Piping Pump 1 Modifications 400360 16,699 700560 6. Cooling Tower Rebuild 31,647 210095 64,400 7s DDC Control/IMS System 1510202 109,395 1760400 8. Cam Piping 70808 130973 D 9. Gas Utility Ixtensione 0 12,188 0 10. Engineering and Design 8,000. 24,500 41.972 TOTAL $370,000 $390,465 $917,910 *Thermal Storage Option 1249,000 1278,495 Not Economically 287,672 Fusible 346,386 ' 218,100 Submitted Cost savings Per Year 56.000 64000 50 000 Thermo (Not given) ( 900001 (Not given) i k I r PROS - CONS TD Serv!ce Burley Coward Honeywell 4cost $1706000 +Cost $390,000 -Cost $917,918 -Dallas firms +Denton firms -Dallas firma +Guaranteed savings +Cuaranteed eav;ngs +Cua[anteed savings +Easy to work with +Easy to work with -Difficult to work with -Not familiar with our system +Familiar with our -Not familiar with our system system J -2 pipe system +4 pipe system +4 pipe system 1 The f ~ payback schedules for three years, five years, and 10 years at 11 APR and E at 81 APR for the amounts of $400,700 and $1,000,000 are attached, Payback i time and amount will depend upon the option chosen. OPTIONS o Executive Staff choose and approve one contractor, $370,000+ o Executive Staff stops program - ;we repair pumps and Install energy ` management system). $132,000 7 ~ o Executive Staff stops program - (we repair pumps ONLY), $20,000 I 1 ~ i h III i 1 I k i i J i COSTS AND PAYBACK ON HYAC FOR THE MUNICIPAL DOWNTOWN COMPLEX Cost S400 000/Pay back Based on 164 000 Annual Savings 3 Yrs./lx 5 Yrs./71 10 Yrs./7% Annual Payment: 152,420 S 97,556 S 56,951 Total Cost: 451,262 487,781 569,510 Paybackt 7.14 Yrs. 7.62 Yrs. 8.90 Yrs. Coat $400,00U/Payback Based on S64 000 Annual Savings 3 Yrs./8i 5 Yrs./8x 10 Yrs.18x Annual Payment: $ 155,213 ' 1000182 5 59,611 Total Costa 4650640 500,910 $96,117 Payback: 7.28 Yrs, 7.83 Yrs. 9.31 Yrs. I ~ Cost 51,000,000/Payback Based on $64,000 Annual Savings 3 Yrs./7% 5 Yrs./1x lo yrs./7% I Annual Paymeatt $ 381,051 $ 243,890 141,377 Total Coati 1,143,155 1,2190453 1,4230775 Paybackt 17.86 Yrs. 19.05 Yrs. 22.25 Yrs. Cost 51 000,000/Pay back Based on $64,000 Annual Savings 3 Yrs./8x 5 Yrs./8X Nay Me -./8X Annual Paymeatt $ 388,033 $ 250,456 $ 149,029 Total Costs 1,1641100 1,252,282 ' 1,4900295 Paybackt 18.19 Yrs, 19.57 Yrs. 23.29 Yrs. PAYBACK is defined as the number of years required for an investment's cumulative cash flows to equal its net investment. Thus, psybark can be looked upon as the length of time requited for a project to break even on Its investment. 4005F °M r ~l 1 ti 1 i Ellin I i i r 21b4L NO. AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases, captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials need not be submitted to competitive bids; and I WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, , J i THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: ,I SECTION I. That the following purchases of materials equipment or supplies, as described in the "Purchase Orders r' attached hereto, are hereby approved: PURCHASE ORDER NUMBER VENDOR AMOUNT 88272 Multi-Information System $120900.00 SECTION II. That the acceptance and approval of the above items s a not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the r Purchasing Department. SECTION 111. That the City Manager is hereby authorized to execute any contracts relating to the items specified in Section I and the expenditure of funds pursuant to said contracts is I hereby authorized. A u i SECTION IV. That this ordinance shall become effective imme ate y upon its passage and approval. PASSED AND APPROVED this the day of , 1989. RAY STEPHENS, MAYOR ATTEST: fE f LWUAETEBr,--C1TY SECRETARY APPROVED AS TO LEGAL FODI: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY j ~ BY: Ww I i i a it e r DATE: JANUARY 17, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROMt Lloyd V. Harrell, City Manager SUBJECT: P.O.# 88272 - MULTI-INFORMATION CAD SYSTEM RECOMMENDATION: We recommend this purchase urder number 88272 to Multi-Information System in the amount of $12,900.00 be approved. SUMMARY: This purchase order is for the requisition of a computer assisted dispatching (CAD) software package. This CAT) software is an addition to existing software currently in use by the Police Department and must be purchased from the original vendor. Purchase for computer software expansion of this type is exempt fromn the bidding process by State law. BACKGROUNDt RFP# 10047 or P.O.# 88272 PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Police Department I G FISCAL IMPACT: 1988/89 Budget Funds Account 100-070-0042-9104 Respect Respect lyy submitteds - Lloyda~ Harrell City Manager Pr e. Names Tom D. Shaw Titles Assistant Purchasing Agent Ap oveds me o n Marshall itle Purchasing Agent I 002,DOC f 4 i, l b v~ r CITY OF DENTON, TEXAS 215 E. McKINNEY ST. PURCHASE ORDER DENTON, TX 76201 P. 0. NUMBER DATENENDOR NO. DOCUMENT TYPE 88272 1/12/89 VENDOR: MUL52500 SHIP TO: MULTI-INFORMATION SYSTEMS POLICE DEPT. P.O. BOX 13398 221 N. Elm ARLTNGTON, TX 76103 Denton, Texas 76201 ITEM ACCOUNT NUMBER UNITS NUMBER DESCRIPTION BID NO. LINE AMOUNT 01 100-070-0042-9140 1 CAD SOFTWARE PACKAGE $9800.00 02 100-070-0042-9140 1 TRAINING(40hrs. @ $40/hr) $1600.00 I 03 100-070-0042-9140 1 SOFTWARE/YEAR MAINTENANCE CONTRACT $1500.00 I I f l ' i I l I The City of Denton, Texas Is lax exempt - House BIII No. 20. TOTAL P.O. $12, 900.00 Reference P.O. Number on all B11., Shipments and Invoices. Shipments are F.O.B. City of Donlon, or as Indicated. Sand Invoices TO: Direct All Inquldes TO: City of Denton, Accounts Payable John J, Marshall, C.P.M, Purchasing Agent 215 E, McKlnney St, Denton, TX 76201 tom 0. Show, C.P.M. Aset, Purchasing Agent Phone 817568.8223 81715808311 DIFW Metro 267-1042 i The City of Denton Is an equal opportunlty employer I J i V ~ y w a Denton Police Department 221 N. ELM DENTON, TEXAS 76201 To: Michael W. .fez, Chief of Police From: Gary Matheson, Administrative Captain Date: January 11, 1989 Subject: Purchase of Equipment from Multi Information Systems, Inc. Purchase of the requested computer equipment necessitates oraering from Multi Information Systems, Inc. based on the fact that the software 1 package for the Computer Dispatching project is designed to operate with current equipment and software. This package interacts with current software operations without modification. The terminals ordered &re to ' be added as additional stations on the in-house system. These terminals are like the others on the system and would be covered under current hardware maintenance contracts. - All prices from Multi Informations Systems include delivery, installation, and setup. Also included in the toatl cost of the project is the addition of memory in the central processing unit for the system. The addition, if it were not included, would cost an additional $900,00. This memory expansion is necessary to operate the additional terminals. We believe that by using the original vendor in expanding our system, we are less likely to incur problems in software maintenance, hardware maintenance, and system usage. By using the original vendor, he will be more familiar with the total system when problems occur. Multiple vendors for the same system would most likely result in each blaming the other when software or hardware prot,lems occur. Gary Ma heron 2 Administrative Captain Admin. M 0 A v ICE Memo 089-5 (817) 566-8181 METRO 434.2520 J 1 REQUEST FOR PURCHASE ~e # MY OF DENTON DATE; ~Q REQU T0 X100445 aspons~bre Responsible Yen or Gode a +votZ z awed By Authorize 5ipna ur vendor NAT* v ReQusner Phone One Fund eAgencysaa. x 2Ati u.~l..A Qys yr~ 5(Z `g' 5o t 00 07 a Activity Object ' lob W. TOTAL lln. Yendw Add~rQ..~s y Q Mo N[a ev _•O . 7~7/~ 1~~~1 V Y NE OAY~ YRLe (34 0 No. C - SHIP 7 111 T ao 0'70 0o4 I~ rlu103 Q ~icc ~P~ ao 070 00L4 g 1yo 1 . 3 i 22.E N -'.1 W `16 201 , 00 070 00q 9146 Venda Gont.et -.~~2pSC~1 0- m uyv Shipping Vendw Phone S /~yIoQS s QO 0,70 0042 Q 1 40 ( ~1 Comment. • F.li,l. S b I 06 0p (3644 q f 40 ; uenutr unit ~Q Katy Gnde veneer G.uio. po unlo Cost 6UDGET T TAL ► Ccn~ .Xl Totat Go.t Descriptfo 71' ~o SL so0 ~err,inL n: ° 7tl T rn I I ea. ?"o s o z. 3 l 4 2- ri n$er, Z J X05 3-1 ~o. Z- 9 S On 3 _ 3Zo0 ABM, Cam }e, PeJE -~txrbo 4 c..lOhe., SO Z 8088 SSo 14 arse, ~o 1C -~loAAu i +{-Valle ' Q , _ acne, ZoM6 hand d;sKfl_~d cari~rai►tr~ one color c,, r• ',cs ad r ,n'~or,a m iie r r4~gnt~SZ3ZC ser aQ _ _ ti R3q Z L .~0 r ZoSoZ, ~ ~ n e-, con~nac~' 5 '1S cahli~ onneco__ __rs WHITE -Purchasing Copy FELLOW -Parehealnit (will be ,tu,sid with p,o,) PtGti TOTAL ► 5017- MUST AOIIEE WITH BUDGET TOTAL I e0e# REQUEST FOR PURCHASE espoin bit Responsible vendor code CITY OF DENTON r ~'r 10A Requested 5 DATE' 80 EQUE p 1 0446 Vendor Hams rye x A thoriz ignatu uQ ew , Ty r' , 5 S Reduestor Phom r ~At~ \~a1 X I_' a I J O No Fund trrrcr noniutl Activity den' ddreu 8 1 0o a,7 0 00 9 TOTAL Line NEED BY ERYSCHERILE R I C4 Co AL -i - ~-jc 13~/] Mo o+ JS 9 oar VA. NO. r~SVI ~~~0'2 SHIP TO; 2 00 Olt) (304 ~I'CQ c3' ben-t- oleic ~ , )60 0-10 064L 9140 2 Y d0r Contact - 22-t N . F. I)'1 -7& Z.O I 7 Buyer e Shipping Vendor Phon E- S 1 1 G tr-1 t ? J CS s Comments • F.O.B. d U CY Umt Cemmodlty Code Vendor ZOS Cataror No Unit Coat Total c "t TOTA ► 6 ,p eat I r ~1 $ 0 O G+I\1J A t~ OesCriplion t 3J SO~ ~t cs. V a1392~ 1 vi 0 1t5op 11i rs, _ { re e(W y-no"i Me na nCc~ pan 3 m 0 R ~ ro - C s- Y - m ti= r WHITE -Purchasing Copy YELLOW •PurchasinE(w•ill be returned with P.O.) PAGE TOT A: ► +I emr MUST AGREE WITH BUDGET TOTAL I I I 1 I I I J I ~I _ REQUEST FOR PURCHASE P. 0e # CITY OF DENTON DATE: 1O a R UESTR 100447 sponsible Responsible Vendor Code IRequtslad BY l~ Q_~ l_.t~ ZU'orized Sig O o ~ x CapVain I ` - Vendcr Name Requestor Phone I Line Fund AiancY amm=i Activity Wlec o6 TOTAL LIM I~ - fro a 5(aro-$150 I NO. too 0-10 I 11 Vendor Address NEED BY DELNERVICMEDULE NO ,Da AR L D~V YR. SHIP Ta be. i` S LA.I 1 I fa I _ n~a also ~e 3 ~ Rxc-1arclison x r7soa1 22it 13.2Iw 'abzo, , Vendor Contact svyw Shipping S S Vendor Phone CammeMf • F.O.B. s 2J ) Z31~~1'13 6 6 BUDGET TOTAL ► to I uan NtY Unit Camr d,tr Code Vendor Cataloe No Unit Cost Total Cost Oeseription c r1 C0.. ZOS3 3c 5o 3 E -g mic 0 Ck Ed SIMS l 1S m m z v )a e llil A xt C JI i 711 O Z r n - - - WHITE -Purchastns Copp PAGE TOTAL ► tj' 445 MUST AGREE WITH BUOOET TOTAL YELLOW -Purchasiy(will be returned with P.O.) nnrr w....:. r.... I I I ~ i I i I I 4 I I P. Oa # REQUEST FOR PURCHASE eaponeible apn CITY OF DENTON GATE: IO a 8 QUEST 100448 il Vmd« Code Y S nitu Ragv tee By ,t Authori eQ Vendor H .,.e Regwttor Phon x }41 n V(A T-Ke SOY` x ature tt iI O TT\ tMKAI,QJ nrwu cq~+'n -5(0(0- A S 1 SO Hp, Fund Agency arwrai Activity lc al. ' TOTAL Line ' r 00 Q 004 I Vendor AddrRU wD NEED Br - IEVV SCHEW I E D R- DAY YR. 1 'V nT~1 1 , N snrP r 100 0.10 (10(4 q140 e ,'T1 ~bZdl o- = c 1~ ~q--aI1~.2 3 ZZl 0 Vendor Contact 8~,~ t Shippim , Venda Phone - f S S I[ { 3g c7--tt] I ` Conxn.nt. • F.O.B. anatr ^rt Commodity Cod. Vand« Catalog No Unit Cost ;:qUDFrTFj-T~T-oTAL ► ~SI ZOSflZ Total Co t rat ` 1 S Descripuon T} 7mtl Ir J CO Cq~tif36 ,00 i new. 50 S Z z rI cA I _ c I ~ 64 _ j f r- . IL^ - i WAITE -Purchaslry Copy ~SpO II YELLOW -Purr Maim (*m be nturn.d *;Ih P. O.( PAGE TOTAL lll~ MUST AGREE WITH BUDGEf TOTAL II I I II! I I i 1 I 1 { i r i ~ i i i I I 1 I b 1 l I UMt6i I December 14, 1988 CITY COUNCIL REPORT FORMAT TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROr1: LLOYD V. HARRELL, CITY MANAGER SUBJECT: ordinance Prohibiting Motorized Vehicles on Lakes in Park Areas RECOMMENDATiON: Approval of the ordinance as presented. SUI`~h1ARY The ordinance will limit the traffic on lakes in park areas to non-motorized vehicles. Motorized vehicles will be prohibited. $ACKGROUND; There is an ongoing problem with people operating motorboats { an6 of er motorized recreational vehicles on the lakes in North Lakes Park. ` The lakes are small, and use of a high speed, high powered recreational vehicle poses a safety concern for the vehicle operator and other park users on the lake or in the immediate vicinity of the lake. It also creates a noise disturbance of other recreational activities in the vicinity. PROGRAM DEPARTMENTS OR GROUPS AFFECTED: it 1 i FISCAL IMPACT: No fiscal impact. TED: f RESPEC LLY 74414 V, HARRELL LLOYD CITY MANAGER PREPARED BY: .WE ''Steve Brinkman TITLE Director of Parks and Recreation APPRO : ITAME TITLE unite; E December 14, 1988 CITY COUNCIL REPORT FORMAT 67. TO: MAYOR AND MEMBERS OF THE LITY COUNCIL FROM: LLOYD V. HARRELL, CITY MANAGER SUBJECT: Ordinance Prohibiting Motorized Vehicles j ~ on Lakes in Park Areas RECOMMENDATION: Approval of the ordinance as presented. SUIVARY: The ordinance will limit the traffic on lakes in park areas to non-motorized vehicles. Motorized vehicles will be prohibited. { ~I MUNDI There is an ongoing problem with people operating motorboats $A an motorized recreational vehicles on the lakes in North Lakes Park. The lakes are small, and use of a high speed, high powered recreational vehicle poses a safety concern for the vehicle operator and other park users on the lake or in the immediate vicinity of the lake. It also creates a noise disturbance of other recreational activities in the vicinity. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: I FISCAL IMPACT: No fiscal impact. t f RESPEC LLY SUB I TED: I 5 1 LLOYD V, HARRELL CITY MANAGER PREPARED BY: j I ;A! Steve Brinkman TITLE Director of Parks and Recreation APPRO AME TITLE 9 2344L NO. AN ORDINANCE AMENDING CHAPTER 15 "PARKS AND RECREATION" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON AS AMENDED, AMENDING SECTION 15-6 BY PROHIBITING THE TAKING OF AQUATIC LIFE FROM PARK WATERS BY CERTAIN MEANS; PROHIBITING CERTAIN MOTORIZED VESSELS ON CITY PARK BODIES OF WATER; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR A MAXIMUM PENALTY IN THE AMOUNT OF $500.00 THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. { THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That Section 15-6 of the Code of Ordinances of the C t~7-7Denton is hereby amended by adding thereto new Sections 15-6(k) and 15-6(1) which shall hereafter read as follows: f (k) No person shall take any fish or other aquatic life from park water areas by any me-ns except a hook and line using natural or artificial baits. All nets and seines are prohibited. 3 (1) No person shall operate or cause to be operated on any body of water in any Denton park, any vessel or vehicle equipped with an internal combustion engine designed or altered to propel such vessel or vehicle in water. SECTION II. All ordinances or parts of ordinances in force when t e prov sions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION III. Any person who shall violate a provision of this ordnance, or fails to comply therewith or with any of the requirements thereof, or of a permit or certificate issued thereunder, shall be guilty of a misdemeanor punishable by a fine not exceeding Five Hundred Dollars ($500.00). Each such person 1 shall be deemed guilty of a separate offense for each and every j day or portion thereof during which any violation of this ordinance is committed, or continued, and upon conviction of any such violations such person shall be punished within the limits 1 above. I I I i w~ SECTION IV. That this ordinance shall become effective fourteen days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this M ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 1989. 4 RAY STEPHENS9 MAYOR I ATTEST: I JENNIFER WALTERS, . f ~ APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: i J i F I` I Wvc-ttio11 CITY of DENTON, TEXAS Civic Center/ 321 E. McKfnneyl Denton, TX 76201 CITY OF DENTON PARKS AND RECREATION BOARD MEETING MONDAY, JULY 18, 1988 r 5:30 P.M. SENIOR CENTER MEMBERS PRESENT: Carl Anderson, Vice Chairman Catherine Bell Bell Rita Pilkey STAFF PRESENT: Steve Brinkman, Director Bob Tickner, Superintendent of Parks Chris Smith, Administrative Assistant Joy Besch, Senior Secretary i GUESTS PRESENT: Gary Matheson Larry Reynolds Peggy Fox Reginr.ld Logan Sandra Ables Frank Morgan Steve A. Johnson j I. MEETING CALLED TO ORDER The meeting was caned to order by Carl Anderson, vice Chairman. 11. APPROVAL OF MINUTES FROM LAST MEETING On a motion by Rita Pilkey, second of Catherine Bell, the minutes of the meeting of tune 27, 1988, were approved, f Y ~alia~:al U01d dtCcAZ1 t44Va4d WinneA ' Denton Parks and Recreation l Dentonr Texas 1 (817)500-8270 s y tF t Parks and Recreation Board Meeting July 18, 1988 Page - 2 III. OLD BUSINESS 1. Juneteenth Committee Report: Catherine Bell gave the highlights of the report and introduced Reginald Logan who presented a list of proposed activities to be included in the celebration in 1989. The requests were as follows: 1. Children's activities (carnival and clowns) 2. Martin Luther King traveling exhibit (Black museum) 3. Sickle Cell screening booth 4. Blood pressure booth 5. Awards 6. Staff coverage for Juneteenth Celebration 7. Softball tournament 8. Basketball tournament Steve commented that big strides had been made in putting the celebration down to the community level and thanked the members of the committee for their efforts. He said the department will support the celebration to the fullest extent. Steve expressed his appreclation to Catherine for all the work she had done. j 2. Report of Survey Results: i I Steve gave the report, and there were no questions. i 30 Sports Associations: Steve reported that the youth sports associations will receive the t same funding, if approved by Council, in fiscal year 1988-89 as they did in fiscal year 1987-88. IV. NEW BUSINESS 1. Public Hearing on Grant Proposal: Bob Tickner said a request had been made to the Texas Parks and Wildlife Department for a matching grant of $180,000 for the renovation of Evers Park ballfields. The City would be required to match the grant with $1800000 which would allow W Cr000 for the -1 renovation of existing llghted fields in addition to lighting the 1 four field as passed in the bond election. Bob raid the grant will be awarded by the end of January, 1989. Rita 411key moved that the Board officially approve the grant request. Catherine Bell seconded the motion, and the motion passed unanimously. Parks and Recreation Board Meeting { July 18, 1988 Page - 3 2. Proposed Ordinance Prohibiting the Use of Motors on City Lakes; Steve said the existing ordinance does not give the City the ability to prohibit the use of motors on the lakes at North Lakes Park. A cha.,ge to the ordinance would have to go through the City Council. Catterine Bell moved that the Board recommend to the City Council that the ordinance be revi3ed limi,:ing the use of motors on City Lakes. Rita Pilkey seconded the motion. The motion was passed unanimously. V. OTHER BUSINESS 1 Chris Smith said there would be a meeting with the Planning and Zoning Commission on September 7 at 5pm in City Hall to discuss the proposed Park Policy. VI. ADJOURN On a motion by Pita Pilkey, second cf Catherine Bell, the meeting was adjourned, I , j j j k I r r I i i I~ i 1 1 II I I r ~ t f I I i CITY of DENTON, TEXAS MUNICIPAL SUILDINO / DENTON, TEXAS 78201 / TELEPHONE($17) 668.8307 Office of the City Menegef M E M O R A N D U M I i TO: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary s DATE: January 13, 1989 1 J SUBJECT: Back-up for Agenda Item 18.F, 1 i Additional back-up is being provided under separate cover. J 1 I ! i i ! alters 2727C/2 I 1 J r ~ r 2b23L I NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH COOPERS & LYBRAND TO CONDUCT A COMPREHENSIVE STUDY OF THE CITY'S EMPLOYEE INSURANCE PROGRAM; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: r SECTION I. That the Mayor is hereby authorized to execute an i agreement with Coopers & Lybrand, to conduct a comprehensive study of the City's Employee Insurance Program and provide written recommendations for changes, improvements, and adjustments, a copy of which is attached hereto and incorporated herein. SECTION II. That the City Council hereby authorizes the expen-31ture of-lunds in the manner and amount as specified in the agreement. SECTION III. That this ordinance shall become effective imme atedi~y upon its passage and approval. PASSED AND APPROVED this the day of , 1989. r RAY I S E.PHEN , MAYOR ATTEST: JENNIFER WALTERSs CITY SECRETARY ' APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: ~Y 1 5221P1118, ii i THE STATE OF TEXAS § AGREEMENT BETWEEN THE CITY OF COUNTY OF DENTON DENTON AND COOPERS 6 LYBRAND § The City of Denton, Texas, a Municipal Home Ru'.e City situated in Denton County, Texas, hereinafter called 'City", acting herein by and through its City Manager and Coopers & Lybrand, hereinafter called "Consultant", hereby mutually agree as follows: I. SERVICES TO BE PERFORMED: A. City hereby retains Consultant to perform the hereinafter designated services. Consultant agrees to perform the following services: 1. Conduct a comprehensive study of the City's Employee Insurance Program and provide written recommendations for changes, improvements, and adjustments. The specific tasks to be completed are set forth in Consultant's Proposal, marked exhibit A, dated December 22, 1988 and which is attached to this agreement and incorporated as if stated herein. 2. Presentation of Comprehensive Report: If such approval is unreasonably delayed or withheld, the Consultant reserves the right to request an extension of the schedules deadlines from the City's Personnel Director. Consultant will provide twenty (20) copies of the final report and agrees to present the findings and recommendations to the City Manager and City Council. Recommendations included in the report will include estimates of financial ir:pact on the Insurance Program and implementation costs. B. Availability of City Resources: City will make available to Consultant the following: 1. Relevant Insurance Program information. ° An inventory of the benefit plans offered, including initial plan implementation dates; dates and descrip- tions of material changes in benefits; administra- tors/insurance companies; funding arrangements, atc. ° Current and in force plan documents (PD's), summerq plan descriptions (SPD's), and contracts with insurance companies or administrators. f ° Monthly claims experience, premium rates and enrollment for 1986, 1987, 1988. ° Financial reports prepared by insurance companies for plans that require a final settlement at the end of a contract period. ° Communications materials that has been used over the past year. ° Any historical demographic and cost utilization reports. Current employee census information. I ° Annual reports and any other materials prepared by previous consultants. ° Medical claims history tapes from both Coordinated Benefita Systems Inc. and the City's prior administrator. 2. The Personnel Director and support staff will be available for program update consultations. 3. On an as requested basis the City agrees to provide t assistance in the activities described in Consul- tant's proposal, including distribution of reports, providing information on the City's current insurance program, scheduling of meetings, etc. It. TERM OF AGREEMENT: Consultant shall commence rendering services within five (5) working days of receiving notification of contract approval. Consultant agrees to adhere to the following project deadlines: Final presentation to the City Manager shall be completed no later than April 179 1989. Presentation to the City Council shall be completed no later than May 17, 1989. Deviation from this schedule will be allowed if prior approval is granted by City's Personnel Director, or for i reasons beyond the Consultant City. 's I PAGE 2 III. COMPENSATION TO BE PAID CONTRACTOR: City agrees to pay Consultant for the services performed hereunder as follows: A. Amount of Payment for Services: City agrees to pay Consultant for the services performed hereunder as estimated below: CONSULTING TASK HOURS COST I 1. Management Study and Actuarial 125-136 $12 750/ Analysis $14,000 j II. Insurance Fund Options & Proposed Changes 40-48 1 41000/ 5,000 III. Actuarial Projections 30-38 $ 3,000/ $ 4,000 IV. Section 89 Coeipliance 80-88 $ 50000/ $ 6,500 Total Professional Fees 24,750/ 129,500 V. Estimated Expenses $_2,000 (Travel, computer, etc.) TOTAL ESTIMATED FEES 6 EXPENSES $310500 Consultant will charge the City based on actual professional time spent and expenses incurred. In no event will the total project cost exceed $31,500 for Consultant's fees and expenses unless Consultant is requested to perform tasks outside the scope presented in the proposal. f B. Dates of Payment: The City will pay Consultant on a monthly basis, within thirty (30) days of completion of services provided for herein. I PAGE 3 IV. SUPERVISION AND CONTROL BY CITY: It is mutually understood and agreed to by and between City and Consultant that Consultant is an independent Consultant and shall not be deemed to be or considered an employee of the City of Denton, Texas for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits worker's compensation, or any other City employee benefit. V. SOURCE OF FUNDS: All payments to Consultant under Chia agreement are to be paid by the City from funds appropriated by the City Council for such purposes in the Budget of the City of Denton. i VI. INS UPANCF.: f I Consultant shall provide at its own cost and expense workmen's compensation insurance, liability insurance, and all other insurance necessary to protect Consultant in the operation of Consultant's business. VII. INDEMNIFICATION: Consultant shall and does hereby agree to indemnify and hold harmless the City of Denton from any and all third party claitos against the City of Denton and directly resulting damages, loss or liability for loss of damage to physical property or injury or death of person to the extent directly and proximately caused by the error, omission or neglif!ent act of Consultant, its officers, agents, employees, inviteos, and other persons for whom it is legally liable, in the course of the performance of this agreement, and Consultant will at its cost and expense, defend and protect the City of Denton against any and all such claims and demands. Consultant agrees to indemnify and hold harmless the City of Denton for any injury to any of Consultant's officers, agents, employees, invitees, 1 and other persons for whom it is legally liable in the course of performance of this agreement for any injury suffered on City premises while in the course of performance of this agreement. PAGE 4 r'1 i VIII. CANCELLATION: City and Consultant each reserve the right to cancel this Agreement at any time by giving the other party fourteen (14) days written notice of its intention to cancel. If the agreement is cancelled before completion, the City agrees to compensate Consultant for services provided and expenses incurred prior to notice of cancellation. Executed this the day of January, 1989, CITY OF DENTON, TEXAS { BY: RAY STE ATTEST: t~ it S JENNIFER WALTERSs TAW APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY 1 i i BY: i COOPERS & LYBRAND BY: TITL ; DATE: _111x1tf That Thomas W. Klinck, is hereby designated as the person to 999 administer the provisions of this agreement. II , I ATE RA S' EP E , MAYOR PACE 5 V i DATE: Janua[ lY 7, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Award of Management Study and Actuarial Audit Contract to Coopers and Lybrand RECOMMENDATION: It is recordcended that the City Council award a Management Study and Actuarial Audit contract to Coopers and Lybrand for the following reasons: o Familiarity with Denton health community, climate and providers o Consultant currently provides services to the University of North { Texas (UNT) and Texas Woman's University (TWU) o Successful negotiations of Preferred Provider contracts in Penton with favorable rates o Successful implementation of self-insured plans for UNT and TWU o Willingness and ability to facilitate plans for the City of Denton tc unite with UNT, TWU, DISD, etc. to negotiate with area providers o successfully managing similar projects with city of Garland and City of Richardson c Scope and depth of responses appropriately addressing our needs o Peasonable cost j o Excellent references SUMMARY: During the 1987/88 fiscal year, the City of Denton's health insurance fund experienced some major catastrophic claims in conjunction with rising health care costs and complexity of options. As a result, the health inr,u:ance fund ended the year with a $700,000 deficit. Open enrollment for the health program was held in October, 1988 and a cost increase of 20-301 was passed on to the employee. In addition, the City contributed $170,000 to this fund and the City Council recommended that an actuarial audit be performed to study the plan in an effort to de-ermine alternatives for plan funding, plan design, and other cost control alternatives. BACKGROUND: The City of Denton's self-insured fund was established In 1978 to provide basic health care coverages for employees and dependents, It was 1 determined at that time that the City's insurance needs could be provided j At a lower cost than had been proposed by the previous carrier (Blue Cross/Blue Shield), The self-insurance fund was set up to provide minimum funding to cover expected claims and adr.inistrative expenses using a Third Party Administrator (TPA). City Council Report Format January 17, 1989 Page Z Over the ten years the plan has been in existence, the rate structure, claims experience and administrative costs have been generally sound, Modest increases in rates have allowed the fund to keep pace with increases in medical costs, inflation and other factors. Through the self-insured program we have been able to save employees a substantial amount of money. Claims processing for the City of Denton (third party administration, life and stop-loss insurance) had been provided through Life Insurance Company of the gmuthwest (later acquired by Health Economics Corporation) until 1987. Wi,. the usual three year bid process `or TPA services and life and stop-loss insurance, the City changed Third ?arty Administrators to Coordinated Benefits Systems. Life and stop lore insurance coverage was provldeu through Washington National Insurance company in 1987/88, During 1987/88 (in addition to changing Third Party Administrators) the City also implemented a Preferred Provider Organization (PPO) through Southwest Preferred Health Network. It was in this year that the City experienced its first of several major 'shock claims'. Several additional claims followed, and by the end of the 1987/88 budget year, approximately $385,000 in shock claims were paid from the health insurance fund. The fund began to experience financial difficulty. To improve the fund standing, the City contributed $170,000 to the insurance fund for the 1968/89 budget year. Additionally, it was { proposed that employee rate increases be applied over a 5 year period to bring the health insurance program to a positive status. The Ci'y Council also recommended that an actuarial audit be performed to gain expertise In identifying currerr and projected strategies consistent with sound management practices. Accordingly, the management study and actuarial audit will make recommerseat tons on funding, plan design and other health cost and delivery mechanisms. PROGrtAMS, DEPARTMENTS CR GROUPS AFFECTED: Health insurance, life Insurance, long-term disability FISCAL IMPACT: 631,500 ed: F:espectfu ub?e Pre red Lloy Bal City Manager Thomas N. nck, )rector Personnel/ pl yee Relations p d• et c._an Executive Director unicipal S vices/Economic Development 5216P y CITY of DENT0,94, TEXAS MUNICIPAL 8UJL 4ING / DENTON, TEXAS 76201 TELEPHONE (8117 566.5200 M E M 0 P A N D U M TO: Betty McXesn, Executive Director Municipal Services/Economic Develop,aent FROM: Thomas W. Klinck, Director Personnel/Employee Relations DATE: January 9, 1969 t SUBJECT: Award of Management Study and Actuarial Contract This mer+o outlines the recent response to our 'Request for Proposal for a Management Study and Actuarial Analysis of the City cf Denton'a Health insurance Plan'. Back round As you know, management study and actuarial analysis of the plan was recommended by the City Council, due to a projected FY 87/88 deficit. This deficit was due primarily to shock claims in excess of $385,000. Open enrollment for the health program was held in October, and a cost increase of 20-30% was passed on to the employee. In addition the City contributed 51700000 to the health fund and recommended that a management study and actuarial audit be perforred to study the plan funding mechanism and explore alternatives for future insurance program rate structure, plan design and other cost controls, Analysis of Proposal As a result of the City Council's recommendation, Request for Proposals were sent to seven consulting firma. The following firms responded: o Coopers and Lybrand o TPFiC o Foster Higgins 3i o Deloitte Haskins and Sells j k The firm of Deloitte Haskins and Sells was not considered in the analysis since their proposal was restricted to Section 89 testing. However, Coopers and Lybrand, TPF&C and Foster Higgins were able to provide responses for services outlined in the PPP. I f v r 1 Memo - Betty McXean January 9, 1989 Page 2 ti Criteria for Evaluation The proposals were evaluated based on the following criteria' o Cost o Capability of consultant to communicate both In writing and orally their ability to perform all aspects of the project within established deadlines o Caliber and experience of personnel assigned to project c Capability to provide Dallas/Fort worth/Denton based on-site support and leadership Analysis of the above criteria is included in the attached addendum. Rfeemmendation Based on the akove criteria, we are recommending that Coopers and Lybrand be awarded a contract for a management study and actuarial analysis of the City of Denton's health insurance plan for the following reaeonst i o Familiarity with Denton health community, climate and providers o Consultant currently provides services to the University of North Texas (UNT) and Texas Woman's University (TWU) o Successful negotiations of Preferred Provider contracts in Denton with favorable rates o Successful implementation of self-insured plans for UNT and TWU o willingness and ability to facilitate plans for the City of Denton to unite with UNT, TWU, DISD, etc. to negotiate with area providers o Successfully managing similar projects with City of Garland and city of Richardson o Scope and depth of responses appropriately addressing our needs o P,easonable cost o Excellent references Cost The total cost for providing services is capped at 331,500. The budgeted amount for the management study and actuarial analysis is $30,000. I have obtained assurances from the Coopers and Lybrand representatives that they will attempt to keep coats at or below $30,000. If additional funds are required, we can utilize funds from the Updated Service Credit savings up to $1,500. Budgetod ec.cer„ for Updated Service Credits $97,167 Actual coat $61,463 II savings 932,201 1 j I Memo - Betty McKean January 9, 1989 ` Page 3 if you would like additional information regarding this proposal, please let me know. Thomas W. ! c attachments I I h 5217P 0111B9i0223 I r ' I 1 i J I Y I: t 3 M1 1. OVERVIEW OF MANAGEMENT STUDY AND ACTUARIAL AUDIT PROPOSALS COOPERS 6 LYBRAND-531$500 FOSTER NIGGINS-$57,950+ TPFiC-$25,000 PROPOSAL COMPONENT DETAILED I GENERAL I N A DETAILED I GENERAL N A DETAILED GENERAL N A I _Analyaia of Eaiating ealth_Plan _ I i I I I I In-depth Review x I I x I I % I I I I I I Review Claims Administrator x I I I x % I I I 1 I I Review Employee I Communlcations x I I X I I x I ! I I I I Review Section 125 Plan x I I x I I I I% I I I I f I ' Comparative Benefit Analysis to I I I I I I Competitors x ! I x I I I I x I I I I I Review of LTD Life, Etc. x I i k I I x I 1, I I ( I I I III &aNesament of Insurance Fund I I I I I I 0_ytions I I I I I I Review of Alternative Fundin Options x I I f I A I ! I I I Recommend Plan Dedf n Alternatives x I I x►+ I I x I I I I I I I I Effectiveness of Current cost f I I I I I Containment Features x I I x I I x I I I I I I I PPO Effectiveness x I I x I I x__ I I I I I I I I 11I.-;letuariel_Analyai® _ _ _ _ _ _ I I I I I I I I 1 I I I S Y~er Prolectiona within ,St x+*+ I ( x I I I I I I I I I 1V. Section 89 Analvais x I I x % *Cost for Poster Higgins includes optional items which were cited in our RFP as required *'Optional items in proposal ***Cannot certify projections will vary leas than .5% 5222P 01108910915 ADDENDUM PART 1 BENEFIT PROPOSAL ANALYSIS 1) Coopers and Lybrand 7) Foster Higgins 3) TPF&C J I 1 j I BENEFIT PPOFOSAL ANALYSIS COOPERS i LYBRAND Costs !11,500 - Includes all phases of APP. Communication Capabilities Within Established Guidelines: Able to complete project witLin time frame established by the city of Denton. Estimated project completion 11-15 weeks. Experience of Personnel: Five employees will be assigned to project with 13-20 years experience. Capability to provide Dallas/Fort Worth/Denton. support: Currently providing services for UNT and Texas Woman's University. Very knowledgeable of health environment in Denton area. Very active in setting up PPO arrangements for University. Rey Issuesi Responded to all areas of RFP I I 2383j/2 I I I I r BENEFIT PROPOSAL ANALYSIS FOSTER HIGGINS Costs 5110800-578950 - Does not include travel and,out of pocket expenses. Communication Capabilities Within Established Guidelinesi Able to complete projects within guidelines. Total project completed in 8-11 weeks, However$ does not include claims administration audit (11 weeks). - -1 Experience of Personneli Seven employees would be assigned to the City of Denton project - 18-25 years experience. Capability to provide Dallas/Fort Worth/Denton supports Has the capability of providing Dallas area support. Cur•ently does not have any clients in Denton area. I ley Issuesi I Claims operation audit listed as optional - not acluded in cost Review of Flexible Benefits Plan was not quoted Recommendation of specific funding alternatives (optional) - $18,000 Included in cost City of Waco and City of Arlington indicated there had been some problems in meeting deadlines 2383j/3 i i i I BENEFIT PROPOSAL ANALYSIS TPF4C Costs $15,000 - FFP does not include a formal audit for claims administration. A separate proposal would have to be made. Communication Capabilities Within Established Guidelines Able to complete projects within guidelines. Total projects completed in 11 weeks, Experience of Personnels Three employees would be assigned to city of Denton project - 7-11 years experience. Capability to provide Dallas/fort Worth/Denton supports Has the capability of providing Dallas area support. Currently does not provide support to Denton area. ley Issuest In-depth claims administration audit would require an additional proposal. Will only conduct an overview at above cost Proposal included overview for plan communication. Indepth communication review would require an additional proposal i i 23B3j/4 I 'I E E 1I' 1 ADDENDUM PART II PROJECT APPROACH/PLANNING DEVELOPMENT 1) Coopers i Lybrand 2) Foster Rigging 3) TPF&C J I ~I I~ ~ r COOPERS i LYB7AND PROJECT APPPOACH/PLANNING DEVELOPMENT Analysis of Existing Empl_o ey a Health Insurance Fund o In-depth review and analysis of City's current health plan (FPO and regular indemnity plan) i o Review funding arrangements/alternatives J o Review claims administration by August International I o Review Section 125 plan 1 o Review employee communications 1 o Compare our benefits to comretitors in Denton and metroplex i o Provide statistical analysis and data to produce relevant hospital statistics to help pinpoint overutilization o Review other plans such as LSD, life insurance, etc. 1 Assessment of Insurance Funding Options and Proposed Changes I o Review alternative funding options - advantages/disadvantages o Recommend plan design alternatives based upon analysis of indemnity and PPO plans o Effectiveness of current cost containment features o Impact of PPO and HMO's on plan cost II~ o Reco,nmendations on alternative delivery systems I Actuarial Analysis for Projections of Insurance Fund and Recommended Changes o Develop an actuarial study to project claims for a five-year period o Due to cyclical and volatile nature of health care costs and trende, cannot certify that projections will vary less than .51 o Will prepare financial estimates using best estimates of trends Review and Analysis of Current Compliance o Review summary plan descriptions and plan documents i o Section 89 testing I 1067e/l I I j i I I I r" FOSTER HIGGINS PROJECT APPROACH/PLANNING DEVELOPMENT Analysis qf Exist, o Analyze carrier contracts and plan documents o Identify areas of potential abuse and how claim dollars are being spent o Compare our benefits to competitors in Denton and Metroplex o Review internal benefit admtnistratlon o Review employee communications o Review claims administration by August International (optional) Issues to be Addressed o Benefits City should provide o Strengths or wraknesaee of current program o Extent which employees should share costs o Preferred method of coat sharing Assessmentof Insurance Pundin 0 tlone and Pro owed than es o Review alternative funding options - advantages/disadvantages o Recommend plan design alternatives based upon analysis of indemnity and PPO plans o Effectiveness of current cost containment features o Impact of PPO end HMO's on plan cost o Recommendations on alternative delivery systems Actuarial Ana] ois for Pro ections of insurance Fund and Recommended Chan es o Provide estimated costa at three confidence levels 99.:1 - Bat - 6G1 Review____ and Ana~sis of Current comp ]lance o Review summary plan descriptions and plan documents o Section 89 testing Des! n and Im lementation of a Flexible Benefits Pr ram o Major concentration is on the development of a full sc Benefits program (not a part of RFP and lacks ale Flexible components) focus on primary RFP 1Q6Te/5 I r~ TPFiC PROJECT APPPOACH/PLANNING DEVELOPMENT Analysis of Existing Employee Health Insurance Fund o Review of plan design o Review of present funding methods o Review claims administration by August International (Does not include formal audit[ separate proposal would have to be made) o Review section 125 Plan o Develop communications strategy (Plan only - actual project would be proposed separately-costs not included) o Review of other plans, LTD, life, etc. Assessment of Insurance Funding Options and Proposed Changes 4 o Review alternative funding options - advantages/disadvantages o Recommend plan design alternatives based upon analysis of indemnity and FPO plans Actuarial Analysis for Projections of Insurance Fund and Recommended ChgpIq o Based upon results of findings from analysis of plan L o Cannot guarantee that projection will be accurate within .51 r o Will provide scenarios for best case, likely case$ worst case Review and Analysis of Current,Con lance o Review summary plan descriptions and plan documents o Identify section 89 plans o Section 89 testing h 1067e/3 f i I I i j; ADDENDUM PART 11 7 REFERENCES Coopers c Lybrand 2) Foster Rigging 3) TPFGC i ti II 1 i I i I 1 1 3 a s + k M1 I I COOPERS i LYBRAND UNIVERSITY OR NORTH TEXAS ' (Joe Mitchell) 1. What services have Coopers a Lybrand performed for you? Insurance consultants, Section 84 testing, develop preferred provider organi2ation, and made recommendations on developing a self-Insured health program. 2. Describe their ability to work within established time lines. Excellent. 3. Quality of work? ` Excellent. r 8. Describe ability to work within the framework of the organisation. Excellent. Briefed president, top management and Board of Regents. 5. What has been their role in negotiating favorable rates with in your area? providers Played primary role in negotiating rates with providers, planned agendas, etc. 6. Were the results favorable? 3 j; Yes. 7, Have their recommendations helped in mane9in fund? 9 Your salt-insured health I 1 very definite financial faprovements. 8. What has been their most significant contribution for your organization In the way of helping you to control health care costs? Data provided was excellent, they have an excellent management information system, they analyze data from claims administrator and utilization review fire, they help to identify where money waa going, How long have they been your consultants? One and a half years. h 10. Are they employed on an on-going basis or as-needed? On-going, 11, How would you rate their success, expertise overall? Excellent, 2382}/7 f COOPERS a LYBRAND CITY OF GARLAND (Neal) 1. What services have Coopers & Lybrand performed for you? Assisted with bid proposal on health, dental, life, AD i D, and also assisted with the Employee Handbook. 2. Describe their ability to work within established time lines. Excellent. 3. Quality of work? Very satisfactory. 1. Describe ability to work within the framework of the organisation. i Very good. S, What has been their role in negotiating favorable rates with providers in your area? Just getting started on that. I~ 6. Were the results favorable? I I t Not applicable. Garland has just started the process of negotiating rates. 7, Have their recommendations helped in managing your self-insured health fund? Not applicable, Just recently became consultants for Garland. 8. What has beel+ their most significant contribution for your organisation in the way of helping you to control health care costs? i Analysis of the previous service providers agreement. Prepared a report that showed why it would be beat not to continue using them. 9. How long have they been your consultants? Four to five months. 10. Are they employed on an on-going basis or as-needed? { Presently it's on-going, eventually it will become as-needed. if 11, How would you rata their succeesr expertise overall? Very acceptable. 2382J/2 1 1 II R r E 5 I 3 I I ~ a FOSTER HIGGINS CITY OF ARLINGTON (rathy Buehner) 1. What services have poster Higgins performed for you? Actuarl+-l e:^luation, evaluation of Benefit Pension Plan, analysis or cervices and changes that needed to be made after tax reform, and also submitted a proposal for health insurance. - 26 Describe their ability to work within established time lines. Always met deadlines, but just barely, Sometimes she had to call them ead remind them of deadline. k 3, Quality of work? Excellent service, in ccmparison to the previous service provider, this group is 1001 better. Describe ability to work within the framework of the organization. Real well. 5, What has been their role in negotiating favorable rates with providers in your area? f Not applicable. Will do it in six months. 6. Were the results favorable? I No results yet available. 7. Have their recommendations helped in managing your self-insured health fund? r No results yet available. 8, What has been their most significant contribution for your organization in the way of helping you to control health care costs? No results yet available. 9, How long have they been your consultants? Cne and a half years, 10, Are they emiloyed on an on-going basis or as-needed? On-going basis. 11, How would you rate their success, expertise overall? Excellent in every way. 9 10 14 /R t v a: C r FOSTER HIGGINS CITY OF WACO 1. What services have Foster Higgins performed for you? Helped them with the Flexible Benefits Program. 2. Describe their ability to work within established time lines. Good, but there were some problems in getting the final planned document together. Took a year longer than projected. 3. Quality of work? Pleased with the quality of their documents, very professionally done, very well done. They provided all the material they needed to do the training. 1. Describe ability to work within the framework of the organisation. Real good. 5. What has been their role in negotiating favorable rates with providers in your area? Not performing this service. 6, Were the results favorable? No rates negotiated. 7. Have their recommendations helped in managing your self-insured health fund? Not performing this service. 8. What has been their most significant contribution for your organization j in the way of helping you to control health care costa? Only worked with flex Plan. 9. How long have they been your consultants? Two years. One year longer than previo•iely anticipated for the Flexible Benefits Program. 10. Are they employed on an on-going basis or as-needed? As-needed. 116 How would you rate their success, expertise overall? No problem, it was very acceptable, 23821// t ~ r POSTER HIGGINS CITY OF HOUSTON (Mike Loftin) 1. What services have Foster Higgins performed for you? Actuarial study of health benefits progras, they took a look at claims experience to identify problems they were Laving with their plan. Describe their ability to work within established time lines. Excellent. 1 3. Quality of work? i Excellent. Describe ability to work within the framework of the organization. Excellent. 4 S, what has been their role in negotiating favorable rates with providers in your area? ` i Not applicable. Not performing the service. 6, were the results favorable? ~ I Not applicable. Not performing the service. 7. Have their recommendations helped in managing your self-insured health fund? Yes. 8. what has been their most significant contribution for your organization in the way of helping you to control health care costs? Identifying problem with plan, in a short time frame. 9. How long have they been your consultants? Not applicable. 309 Are they employed on an on-going basis or as-needed? One time jobo however, they are looking at hiring an actuarial firm. 11. Now would you rate their success, expertise overall? Excellent. 2362}/6 I it a G n TPFiC DPW AIRPORT (Maxine Edington) 1. What services Lave TPF&C performed for you? Retirement actuarial and benefits coverage. 2. Describe their ability to work within established time lines. Good. 3. Quality of work? Excellent. 1. Describe ability to work within the framework of the organization. i Excellent. 5. What has been their role in negotiating favorable rates with providers in your area? They review rate bids annually, and have succeeded in reducing some of the bids. 6. Were the results favorable? I ~ Yes. Have their recommendations helped in managing your self-insured health fund? Have not made as yet. 8. What has been their most significant contribution for your organization in the way of helping you to control health care costs? They helped in implementing cost containment provisions. 9. How long have they been your consultants? Your years. 10. Are they employed on an on-going basis or as-needed? On-going. 11. How would you rate their success$ expertise overall? I Excellent. 2j82J/3 ;p ) r, TPFiC EL PASO INDEPENDENT SCHOOL DISTRICT (Lillian Crouch) 1. What services have TPFiC performed for you? Official consultants - responsible for everything pertaining to health Insurance funds (such as giving advice on health Insurance issues). 2, Describe their ability to work within established time lines. Excellent 3, Quality of work? Outatai;iznq. 1 i 4. Describe ability to work within the framework of the organization. Excellent. { S. What has been their role in negotiating favorable rates with E in your area? providers Not applicable. Have not negotiated any rates. 6, Were the results favorable? , 1 Not applicable, Have not negotiated any rates, I . 7. Have their recommendations helped in managing fund? Your self-insured health Yea, S. What has been their most significant contribution for your organization in the way of helping you to control health care costs? Specific individual handles account, reviews insurance carrier, makes suggestions regarding plan design, reviews plan periodically. ~ I 94 Now long have they been your consultants? Seven years. 10. Are they employed on an on-going basis or as-needed? on-going. 11. How would you rate their success, expertise overall? Outstanding. 2382f/8 1 i f a a { 3 EXHIBIT A THE CITY OF DENTON F A PROPOSAL FOR PROFESSIONAL WELFARE BENEFIT CONSULTING SERVICES 1 r i PRESENTED DECEMBER 22, 1988 COOPERS I & LYBRAND 6CTUARIAL. BENEFIT$ h COMPENSATION GROUP Leaden in she financial Advisory and Advanced Systems Aspects of Human Ruource Management, Insurance and Rkak THE CITY OF DENTON A PROPOSAL FOR PROFESSIONAL WELFARE BENEFIT CONSULTING SERVICES I I I PRESENTED DECEMBER 22, 1988 I fA i THE CITY OF DENTON 1 I A PROPOSAL FOR PROFESSIONAL WELFARE BENEFIT CONSULTING SERVICES 1 I r I ~ 11 1 'I 1 PRESENTED DECEMBER 72, 1988 i, ~ I a OEM owed pubic aoxuntanrs 1999 eran Sheet Coo ers Y Dr noDal areas o hk wwid Suite 3000 ~ &Ly rand aauana6 benehla Dallas, Teas 75201 end mrnpensalbn lelephone (214) 754.5000 mnsultinp dniSiM December 22, 1988 Mr. Tom Klinck Director of Personnel City of Denton 901 B Texas Street Denton, Texas 76201 RE: Proposal for Management Study and Actuarlal Analysis of Employee Insurance Fund JlI Dear Mr. Klinck: 1 We appreciate the opportunity to present our qualifications to assist the City of ` Denton In managing its employee benefit plans. Coopers & Lybrand is uniquely f qualified fcr this project. As consultants to two of Denton's largest employers (The University of North Texas and Texas Woman's University) we are knowledgeable of the Denton healthcare environment and have dealt with the difficult problems current) racing the City of Denton. Second, we serve as consultants to a mum l ber of local /Texas municipalities and hence have experience in dealing with the unique problems faced by municipalities. Our local municipal clients Include the City of Richardson and the City of Garland. Finally, as a result of other engagements (City of Austin), we have reviewed the internal administrative controls and systems utilized by your current claims 4 administrator (Coordinated Benefits Systems) and hence are knowledgeable of CBS' management reporting and claims processing capabilities, I BACKGROUND The City of Denton, along with most other municipalities and major commercial employers, finds itself facing a very difficult dilemma in managing its employee health care costs. During the early to mid 1980s, health care costs Increased generally i at a similar rate as other components of the Consumer Price Index (CPI). However, during the last two years, rate Increases In the twenty-plus percent range are being defined as low, and premium rate increases ranging above fifty percent are becoming the norm. These rate increases are coming at a time when the economy continues to be depressed and employee salary increases are minimal The City took the initiat•'ve to aggressively manage Its healthcare costs through the development of a Preferred Provider Organization program rot general Illness and a separate program for Mental & Nervous conditions, However, several specific claims have caused the C)ty to reach its specific and aggregate stop-loss levels, with a 1 resultant deficit of $700,000 for the medical plan. it I t S t I i I i 1 Mr. Tom Klinck city of Denton December 21, 1988 Page Two 1a short, as with most other employers, the management of employee health care costs has become increasingly difficult and complex. Unfortunately, the involvement of the Federal government will continue to increase the complexity of benefit plans administration and result In additional management time requirements, as reflected In COBRA and the more recently announced Section 89 testing requirements, COOPERSS LVBRAND Coopers A Lybrand's (CAL) Actuarial, Benefits and Compensation (ABC) Consulting division is one of the leading Human Resource consulting practices in the country in all aspects of compensation and benefits management. We have pioneered several new concepts regarding the employer's role In managing health care costs, developing Preferred Provider delivery systems, supplying health care data and actuarial analysis j systems and creating flexible compensation programs to support cost management goals. Further, while other consulting firms have knowledge of managed care programs, we have developed programs for Denton employers, and hence, are knowledgeable of local health care provider's true cost and services. Located In Dallas, the CAL Southwest Group Practice is comprised of benefit professionals from diverse backgrounds. Our staffs previous work experience has been In Insurance companies, HMOs, the corporate environment and other consulting firms. We have expertise in actuarial science, health care statistics, claims administration, employee benefit taw, hospital administration, human resource systems and corporate plan administration. This unique blend of skills and experience helps to provide a global perspective to clients in dealing with compensation and benefit Issues. I As per your Request For Proposal (RFP), we have organised our response as follows. 1. Executive Summary Understanding/Background of Project Scope of services to be performed Approach/Recommendations + it. Project Timing Phase 1. 11, III and IV Ill. Estimated Fee Schedule Phase 1, 11, 111 and IV IV. Engagement Team V. Why Coopers A Lybrand? V1. Client References VII. Sample Letter of Engagement for Proposed Services Vill. Biographies i I 6 E, e { ,4 l a Mr. Tom Klinck city of Denton December 22, 1988 Page Three The City of Denton is truly facing some very difficult and complex issues. Coopers & Lybrand has the hands-on experience in dealing with concerns similar to yours and, has extensive municipal government experience. We took forward to addressing any questions you may have regarding our proposal, and further, to serve you as your benefit consultants. Please contact me at 214/754- 5204 if you should have any questions. i Sincerely, David J. Palatiere, )AP.H. Senior Consultant i t ~ G I - -T- T T A' y i TABLE OF CONTENTS P1as. 1 1, Executive summary rJ~ 12 IL Project Timing - Phase 1, 11, 111 and IV E 13 TIL Estimated Fee Schedule • Phase 1, 11, II[ and IV 14 1V. The Engagement Team V, Why Coopers & Lybrand? l3 lg V1. Client References it j VII. Sample Letter of Engagement 20 for Proposed Services V111, Biographies 2I F 1. EXECUTIVE SUMMARY Understand lna/BacktrounJ1L_ftQjW In addressing the Scope of Cervices outlined in your RFP, we have developed an approach which is comprehensive, yet efficient in accomplishing the tasks at hand. First, the City is to be commended for the thorough review it desires, as It indicates your appreciation that there is no "silver bullet" to correct ever escalating health care costs, PHASE 1 ANALYSIS or EXISTING EMPLOYEE HEALTH INSURANCE FUND Phase 1 of the Scope of Services consists of an indepth review and analysis of the City's current health plan from a multitude of perspectives (plan design, - 1 claims administration, statistics] analysis, etc.) Our proposed services are as follows: 1 A. Conduct Initial Meetings Prior to initiating our review of the current health plan, we will conduct initial meeting(s) with the City's staff to ascertain your objectives, identify issues relating to association (Police and Fire) arrangements, determine the limitations, If any, in the current Preferred Provider program, etc. The initial meeting(s) will cover high level management issues. In i addition, we recommend the establishment of a project team which would meet periodically during the course of the project (e.g., after the completion of each major phase of work), to ensure that we continue to meet the City's objectives. Upon completion of our Initial meeting(s), we will perform a thorough review of the current health plan as presented below: B. Plan brfliin Review A plan design must be developed which fits the needs of the employees, is simple to understand and easy to administer. The problem with current plans is that they: Are difficult to administer, especially from the provider's perspective. Implement benefit cuts resulting In little more than cost. shifting to the patients. } Enable hospitals and physicians to easily discount the deductibles and co-payments and adjusting their billing rates to "override the system 1 s , t_ In summary, a plan design must be developed and utilized that fits the city or Denton. we will focus on the City's two plans and the Utilization Review program. Specifically, we will review the Indemnity Plan and the Preferred Provider Organization Plan from the perspective of: Deductibles and co-pays Incentives to utilize PPO network Utilization of PPO Providers (physicians and hospitals) versus non•PPO providers from the perspective of: Services provided Paid Claims Comparability of cost per hospital admission, length of stay Referral patterns of PPO physicians to non- PPO providers (physicians and hospitals) An important step In our review process will be to obtain a claims history tape from Cootdinated Benefits Systems for the ' past several se( ) which allowseuslthe abilityi osanalyze M1 rs. e have system (MedB&Hase { j claims data and compare It against local Denton/Dallas area employers as well as stale and national norms. By performing our claims analysis we will analyse issues such as: , The impact of adjusting deductibles and co-payments. I The effectiveness of UR and Cost Containment programs such as the second surgical opinion and outpatient surgery programs. The paid claims by employee, spouse and dependents. Plan Historlc,l Bac_ ILM" In addition to performing a claims analysis, we will request to review and analyze the following information: An inventory of the benefit plans offered, to include obtaining initial plan Implementation dates, dates of material changes and dates of changes In administrators, insurance companies, tie, b's), Any summary availale current and descriptions (SPD's)sanplan d contracts nwith Insurance companies or administrators. I 2 1 I 1 e t 4 i t 4 i Monthly claims experience, rates and enrollment. Financial reports prepared by insurance companies for plans that require a final settlement at the end of a contract period. Communications material that has been used over the past three to five years, as available. Historical demographic and cost utilization rer.•ts. Annual reports and any other materials prepared by previous consultants. C. Review Health Plan Administrative and )finding Arrantements 1 In this segment or our review, we will focus on the administrative and funding arrangements currently inplace. Specifically, we will review: 1. Plan Rates i • The appropriateness of current rates by coverage level; The appropriateness of rates to cover expected claims plus administrative costs; • Assess revenue trends based upon employee demographics, ! current and projected rates, and current and projected health care costs. 2. Funding/Pricing Alternative; I i As the City has entered Into arrangements with both Denton area and Dallas area providers, we will focus our attention on the current negotiated contracts to determine if the City Is obtaining the savings It should. Specifically, we will review: I • The appropriateness of current plan deductibles, co-pays, maximums for both the Indemnity and PPO plans. From the data we obtain from performing our claims analysis, we will be able to report to the City whether or not the currently negotiated contractual arrangements are: 1) Equitable from the City's perspectives, and ` 2) Saving the City benefit dollars. i 3 r f t 4 I I ~ n • As we have extensive experience in negotiating with area providers, we call compare against what other employers have obtained through negotiations. (Please see Section V • 'WAY Coopers d Lybrand) • The appropriateness of the current Stop loss levels! Individual (Specific) Aggregate Insurance 3. Claims Administration One of the primary areas of managing your Plan is the claims administrator/Utilization Review area. It is not uncommon to have claims error rates approaching 5% of paid claims. As the City's paid claims are approximately $1,000,000, it may be ' exposing itself to a significant amount of mispaid claims. i Our review of the claims administration area will consist oft • An Operational Review of CBS to assess administrative 1 efficiency, Internal controls, claims management reporting capabilities and responsiveness to claims Inquiries., • The Identification and evaluation of claims processing costs for both CBS and their UR firm (August International). I l 4. SWIon 125 Plan Review ' r i The City of Denton has Implemented a Section 123 Plan and desires a review of the program be performed. Our review will consist of the following Issues: • Determine actual employee savings and City savings; • Review participation levels to determine areas of employee populations which are not participating In the program; Review 125 employer communication materials and provide recommendations as appropriate, • Review overall program and Identify methods the City might pursue to Increase participation levels, 4 a ` ,r S, Fmr,lovee Communications Given the multitude of changes and complexity of benefit plans, employee communication is critical to the success of understanding exactly what is and is not covered and by which providers. In this area, we will review: Current employee records/documentation currently being maintained. • Current employee communications material. • Develop recommendations regarding current procedures and material. 6. Benefit Plan Comparison The City of Denton must be competitive with other local Denton and Metroplex based employers in order to retain qualified employees. A major concern to employees is how their benefits package compares with other local employers. Based upon our service to numerous Denton and Dallas bayed employers, we will develop a comparison matrix Identifying: Benefit Design Coverage Levels r Cost Containment Programs V Rates 1 Employee Contributions Major Plan modifications such as HMO, PPO development I y, Statistleal Analysis and Data t The Importance of timely, accurate data It critical to the management of your medical plan. Plan managers can no longer make decisions based upon fragmented information or data of questionable quality. Utllizieg our MedBase system, we will be able to produce relevant Inpatient hospital statistics such as: • Cost per day Cost per stay (admission) Cost by diagnosis Number of admissions per 1,000 covered employees/dependcnts Number of patient days per 1,000 covered employees/dependents These statistical indicet are critical to pinpointing areas of I utilization within the Plan and developing procedures to deal with over-utilization, if any, S ' I 1 i a We have data on all of our Dallas/Denton based Group Benefits clients and are able to compare the City of Denton's to this group, as well as to regional/astional norms. 8. Review of Other Plans As called for on your Request for Proposal, we will review the City's LTD, Life Insurance and other plans from the perspective of: • Appropriateness of current rates and costs • Comparisons against our other clients which have similar benefit plans f Funding mechanism of these benefit plans 11 PHASE 11 Asssssm N r or (NSVRANce FUNDING OPTIONS AND PROPOSED CHANGES As stated in your RFP, the City established a seif•insured program in 1918 with the understanding that along with controlling its medical plan comes the responsibility of ensuring a financially secure Plan. Given your employee size and desire to manage your plan, it Is our belief that the City's desire to implement a self•i-inured program was appropriate and that your desire to be In more control to manage your health plan. iJ Simply stated, the issue or self insured versus fully Insured comes down to a timing issue. For those employers who are fully insured, should they have a "bad' year, the carrier will include anticipated claims costs and their deficit recoupment amount in the following years' re-rating process. Certainly the employer has the freedom of terminating the contract, however, any new carrier will be very cautious in bidding for the contract and take into consideration claims experience and history of past carriers. Ultimately, those employers who manage their plans effectively and efficiently will be able to maintain premiums at levels which their employees can afford. In reviewing the options available to the City of Denton, we will focus on: 1. Alternative Funding Options lncludipg: • Fully Insured programs • Self -insured programs Minimum Premium Programs • Appropriateness of specific and aggregate Stop loss • Insurance levels Cost-sharing options and philosophy Employees paying a portion of the premium 4 Use of deductibles and co•payments 6 i In reviewirg these options, we will concentrate on: • Advantages/Disadvantages Flexibility/Controi Cost (Internal/External) • Cost (One-time and On-going) 2. Recommended Plan Design Alternatives Based upon our analysis, we will recommend changes to the City of Denton's Plans as follows: • Indemnity and FPO plan Utilization Review/Cost Containment Programs • Provider Reimbursement Levels Managed Care Options We will review other managed care options to assess the feasibility of the City in joining other established programs ie Denton. i PRASE III ACTUARIAL ANALYSIS FOR PROJECTIONS OT INSURANCE FUND AND RECOl9.1ENLEn CHANGES We will prepare a 3 year forecast in conformance with generally accepted actuarial practice, utilizing the data obtained in Phases 1 and 11. Our meihodologv in perfotming this task Is as follows, • Methodoloav We will design a projection model that will utilize baseline claim costs, enrollment demographics, cost and utilization trend factors, administrative expenses and reinsurance fees. The MedBase analyses done In Phase 1 of the project will provide Input for determining the claim costs and the cost and utilization trends to be used in the projeetlons. The baseline costs calculated from historical City of 1 Denton claims experience will be weighted with the claims co.tu from other Denton area employers to determine the baseline costs to be used In the model. Trend assumptions will be determined based on current regional health care trends and recommendations from Coopers dt Lybrand's Nodonal Health Care Economics Consulting Group In Washington, D.C. 1 f 7 I I 1 V a The level of detail that the model incorporates will be dictated by the intended applications as identified by the City. A summary level model would provide a toot for the City to do budgeting and cash flow analysis 00 an aggregate basis. This model would use average costs, contributions, etc. on a per employee basis. A more detailed motel would input and track costs based on actual participation and premium levels on an employee only, employee and dependent basis. This greater level of detail would offer the City the opportunity to vary assumptions pertaining to shifts in enrollment among coverage categories and changes in premium contribution levels. ;ear Proiecti0ns A prototype of the output or the plan financial model is included for your review in Attachment 1. Your RFP requested that the accuracy or the projections be within .5% of actual experience. Due to the cyclic and volatile nature of health care costs and trends we cannot certify that our projections will vary less than .5% especially when making projections for 60 months. Our standard practice in projecting Plan costs is to prepare a I financial statement using our best estimate of trends and holding all Plan provisions and funding arrangements at , status quo. In an effort to place those projections in the `I proper context, we then prepare a second pro forma that r changes the trend factor by 1% to indicate the sensitivity ` of the results to a variance in assumption. The flexibility of the model will facilitate periodically updating the projections for actual experience, benefit J changes, or growth/decline in Plan participation. "What if' Analysis The financial projection model will be designed to allow for 'what if" analysis. This will enable the City to analyze the results of proposed benefit and enrollment changes. , The City of Denton management project team will be asked to provide input regarding which of the initial assumptions they would like to see changed and by what degree. The model will then recalculate the Plan financial projections based upon the revised set of assumptions and quantify the short term and long term financial impact or the specific change. Multiple assumption changes can also be combined. PRASE IV REVIEW AND ANALY6IS OF CUltltENT COhYLlANC6 WITH FEDERAL LAWS Compliance with Federal regulations is becoming more and more complex as Group Benefits plans are required to comply with regulations previously established qualified/pension for I f ~ plans. a ~ I I I j ,1 v{ ` Our assistance in this arcs will include the following: Qualification Standards The Qualification Standards require that all plans meet the following requirements: The plan must be in writing. The employees must be notified of their rights and benefits under the plan. The employees' rights must be legally enforceable. The plan must be established with the intention of being permanent. The plan must be maintained for the exclusive benefit of the employees. We will identify each plan affected and review all Plan Documents and Summary Plan Description for compliance based upon our current interpretation of section 89 requirements and provide a summary level analysis. Once the final regulations are issued, we will reassess our compliance findings, if applicable. If the plans are found not to be in compliance, we will identify specific areas of non-compliance and provide the City with a fee estimate for our assistance to bring the plan into compliance with the Qualification Standards. ~I Non-Discrimination Testing Prior to initiating tasks related to Section 89 testing, we will meet with City management to develop a strategy for compliance. Should testing be the selected approach, the following tasks will be completed: Collection of Pooulstion Data We will assist the City in testing benefit plans under the Section 89 regulations. In performing the testing, the availability of specific data elements will be critical. We anticipate the City will provide us with the data elements and other information noted in Attachments II via magnetic tape. Perform Comoliance Testina The Non•descrimin&lion legislation requires that in order to be in compliance benefit plans must pass either the 80% ' Alternative Test or both the Eligibility and Benefits Tests. } Alternate Teiting. In this step we will examine the feasibility of performing the 80% Alternative Test, i k 9 t I i I i 1 i i Eligibility Testing: In this step, we will perform the 50% Eligibility Test and the 90%/50% Eligibility Test. The 50% Eligibility Test requires that 50% of the employees eligible to participate in a plan must be non-highly compensated. The 90%/50% Eligibility Test requires that 90% of the non-highly compensated employees be eligible to participate in a plan that has a value of at least 50% of the value of the highest benefit available to the highly compensated employees. Benefits Tests: 'r To test for benefits compliance, we will perform the 75% Benefits Test. The 75% Benefits Test requires that the average value of the benefits for the non-highly compensated employees be at least 75% of the average value of the benefits for the highly compensated employees. Section 89 Tests Results: Upon completion of the testing phase, we will deliver ■ preliminary compliance report I summarizing the results of the tests as well as any possible alternatives where compliance was not achieved. ON -GOING C^*'SULTING ASSISTANCE i ~ Although the RFP did not specifically request on-going benefit consulting, we recommend a periodic review of experience/costs, updating of legislative issues and assistance in renewal of plan providers, administrators and insurers. In this regard, we recommend the following tasks be performed: We believe it is imperative that plan activity be reviewed J frequently, preferably on a monthly basis. Attachment 1 is an example of the financial information which should be available to decision makers on a monthly basis. This Attachment provides management with a financial perspective of the Plan on ■ monthly basis. Attachment III provides management with utilization data (admissions/bed days) which assists in identifying how the plan is operating compared to budget. j Initially, we will assist the City in customizing and implementing these spreadsheets, and anticipate that the City will be responsible for their development on an on- going basis. 10 I I I I k 1 V t_ As empl„fee benefits become ever complex due to legislation activities, it is imperative that management is knowledgeable of critical legislation as soon as possible. CRL's Washington, D.C. National Technical Services Unit is responsible for providing timely identification and analysis of legislation as it is passed by our elected representatives. As a result, we are continuously updated and informed of critical legislation, and will inform the City of such ; ritical legislation and its impact as soon as possible upon release. Also, as part of our on-going consulting, we will assist in the renewal and negotiation of all plan vendors including: r~ Health Plan Plan claims administrator - UR firm (if separate) - Stop-loss insurer (if separate) - Health care providers (hospitals/physicians) Life Insurance I Accidental Death and Dismemberment Insurance G E Our on-going support and role will be finalized based upon the City of Denton's internal personnel capacity and time allowed ! considerations, and an agreed upon task list. Attachment IV is a I sample of the tasks we perform for other clients which have requested on-going consultation services. i i j 11 9 i e> ' a 11. PROJECT TIMING We are able to initiate this engagement immediately upon receiving your approval to do so. The elapsed time requirements for each Phase are presented below. Unless otherwise noted, tasks can be performed concurrently. ELAPSED TIME PHASE I ANALYSIS Or ExiSTINO EMPLOYEE 3.4 Weeks HEALTH INsuRANCE FUND Conduct Initial Meetings The time Review Administration and Funding requirement is Arrangements based upon how Review CBS claims administrative quickly CBS can procedures produce the Review Section 125 Plan claims history Review Employee Communications tape for our Develop Benefit Plan Comparison analysis. Review LTD and Life Insurance Plan Perform Statical Analysis PHASE II ASSESSMENT Or INSURANCE FUNDING 3.4 Weeks OPTIONS AND PROPOSED CHANGES Review Alternative Funding Options Recommend Plan Design Alternatives I PHASE III ACTVARIAL ANALYSIS FOR PROJECTIONS or 3-4 Weeks INSURANCE FUND AND ReoOMMENDED CHANGES Develop an actuarial study to project claims for a 5-year period PHASE IV REVIEW AND ANALYSIS Or CURRENT COMPLIANCE 2.3 Weeks Review SPDs and PD The time Section 89 Testing requirement is Qualification Testing based upon » Non-discrimination Testing receipt of Section 89 Data Tape i a 12 i 6. PROJECT ESTIMATED FEE SCHEDULE See fee quote schedule and signature form on the following page. Costs are for professional services only and do not include out-of-pocket expenses, such as travel, copying, computer processing, telephone, communications printing, if any, etc. These costs will be billed separately and are estimated to be less than 396 of the estimated professional fees. 1 { li I II J I I i I 13 1 J tx ~ d 3 CONSULTING COST ESTIMATE AND SIGNATURE FORM Benefits Consulting for City of Lenton DATE; Decembet 22. 1989 PROPOSAL OF: Coopena 6 tubannd (Name) 1999 St an Stheet Swi.te 3000 Da£W T xaz 75201 r e, City of Denton Director of Personnel/Employee Relations 324 1. McKinney Denton, Texas 76201 The undersigned, in compliance with your Request for Proposal, having carefully examined the documents, and being familiar with all conditions affecting the proposed services, hereby proposes to perform the duties of an insurance/employee benefits consultant for the City of Denton in accordance with the above Locuments and in conformance with all performance specifications, for the following sums: Consulting Fours cost 1. Management Study and Actuarial Analysis of City's Existing Insurance Fund 125-136 $13.750_15o W II. Insurance Fund Options and Proposed Changes 40- 48 5.000- 6,000 Ill. Actuarial Projections 30- 38 4.000- 5,000 IV. Review and Analysis of Compliance with Federal Laws (Section 89) 80- 88 200- 7,900 TOTAL $290950-.',3, 900 It is understood that the city of Denton reserves the right to accept or reject any and all proposals and to waive any irregularities. It is further agreed that this Proposal shall be valid and not withdrawn for a period of ninety (90) days. j I i i 1 E i jA I r I r a, ` The firm submitting this proposal is (fill in requested information under one of the following): a CORPORATION, chartered in the J State o an authorized to conduct business 1I in the State o Texas. or Coopw S LybAand a PARTNERSHIP, in which the To1Tow ng names n ivi ua s are partners: Ha"Y D. Spzing G2o3g2 Menlzing f It is further understood that the person whose signature appears below is legally empowered to bind the corporation or partnership. Submitted by: Ccopeu S Lybxand ame o firm 1999 Bzyan StAee.t, Suite 3000 Mailing Address DaR.ta.e, Texae 15201 city tate$ an p Code 2141154-5000 e ep 0 e Number By: U,51 aiv: D. Satur ~nua y pking By : Signature y e i Regionat Managing amen, ABC to i 0813B 1 i + I i I i i IV. THE ENGAGEMENT TEAM In addressing your requirements, we have assembled a project team which has J extensive background in the significant tasks that are to be undertaken and experience 11 in working with municipalities. You can expect to receive the highest level of service and attention from the consultants we have assembled for this engagement. Mr. Harry Spring, Managing Partner of the Southwest Region, will serve as the engagement partner. Harry will have overall responsibilities for ensuring a successful engagement. His extensive experience in benefit planning and design will ensure that the City's objectives are met. i Mr. Dare Palatlere, Senior Consultant/Group Benefits, will serve as the Project Director and will have overall responsibility for the project on a day-to-day basis. Dave is the Project Director for the University of North Texas and Texas Woman's University and hence is knowledgeable or the Denton healthcare environment. Dave has 11 years of experience in health care/general group benefits consulting, with particular emphasis on benefit design, development of Preferred Provider programs and selection of claims { administrators. Ms. Megan Crosslo, Senior Consultant/Group Benefits, will also be assigned to this project and will oversee the work to be performed regarding Section 125. Megan directs the Group Benefits Unit and has 14 years of experience in employee benefits and Flexible benefits consulting. She has implemented approximately twenty (20) 125 plans varying in complexity. Mr. Gordon Grubbs, F.S.A., Senior Consultant/Group Benefits, has over 20 years of experience in the employee benefits/healthcare field. Gordon will provide the actuarial assistance in establishing rates and In plan design alternatives in the area of development of managed care programs. Ms. Alyce Meadors, Senior Consultant/Technical Services, has 13 years of corpor^te experience dealing with compensation and benefit plans for union and non-union groups. Alyce is a benefits attorney and will be respoasiNe for drafting and reviewing all benefit plan documents. fj i h i 14 i V. WHY COOPERS & LYBRAND? We would like to summarize some of the reasons Coopers & Lybrand is the best firm to serve you on this engagement. Firm Size ■nd Oraanlzation Coopers & Lybrand is one of the world's largest most highly respected, public accounting firms. We offer a full range of accounting and consulting services to our clients in the public and private sectors, including accounting and lr consulting for many Fortune 500 corporations. Our domestic operations employ over 15,000 people located in more than 105 cities. Internationally, the firra employs 41,000 people located in 550 offices around the world. h The domestic firm is divided into four service divisions, each of which is headed by a Natio Director. These service divisions are: Actu at, Benefits and Compensation Consulting (ABC), ` Management Consulting Services (MCS), { Tax, and f Accounting and Auditing. r Each of these four divisions has develoc!cd a distinct body of knowledge with d specific applications. The ABC Division has immediate a:cess to the full 1 resources of C&L's Audit, Management Consulting and Tax Divisions, and it i I frequently calls upon professionals in other disciplines as the need arises. r Thus, C&L brings to pension consulting and other employee benefit matters an r` interdisciplinary approach which goes well beyond the customary scope of benefit consulting services. For example, federal and state income tax questions, financial planning matters and financial statement presentation issues can be handled expertly and with ease. Actuar'al. Benefits and Compensation Consulting Division Through its ABC Division, C&L is one of the few International public accounting firms with professional expertise in the field of benefit plan consulting. C&L's ABC Division and its predecessor, the Terriberry Company, has provided high-quality consulting services since 1929. Prior to its merger into C&L in 1961, the Terriberry Company was one of the nation's leading ' independent actuarial firms. Professional Staff The National ABC Division includes more than $00 individuals located in 20 major cities. The professional staff includes over 250 actuaries, I IS of whom are fellows or Associates of the Society of Actuaries or members of the Casualty Actuarial Society. Our ABC Practice in the Southwest Region was established on February 2, 1976, and is currently comprised of 35 benefit professionals dedicated to serving clients in the employee benefits arena. J 1 IS i _J i Communlcatlogk Coopers & Lybrand can provide the City of Denton with a plan for communicating your benefits and compensation plans to your employees. C&L has the capabilities and expertise to develop a communications package from the inception of a philosophy and strategy, to the determination of the types of media to use, to the production of the commurication package, to the formal presentation of the material. 1J The communications strategy should incorporate the development of a central theme with the production of all materials centered around this theme. The strategy should also encompass the production of a major communications + campaign during the reenroliment period, using a variety of media, such as + printed material, slide presentations and video presentations, etc., plus the development and presentation of complimentary material to reinforce the theme of the campaign throughout the year, 1 C&L's employee communications specialists will ccordinate our resources with the staffing and communications production capabilities of the City. In addition, the City will obtain our recommendations from the initial concept through the final production on the best strategies, techniques and media to use in order to meet your needs and objectives. As a result, the City will keep key individuals and all employees knowledgeable concerning their benefits and II compensation programs. 1 A successful communications program must be well planned, coordinated and targeted to the employee audience. The diverse demographics of the City's employees and families represents a challenge to effectively communicate the desired message. C&L's experience in all phases of compensation and benefits design and implementation, combined with thoughtful and innovative approaches to communication, will assist you in accomplishing this goal. Cost Management/Provider Netotlatlons With health care trends again approaching 20%, techniques of cost containment or the new term cost management, are the topic of discussion among plan administrators. One of the critical challenges facing employers in the current health care environment is the ability to manage a financially competitive indemnity plan, while local HMO's are attracting a significant portion of the eligible "healthy" employees away. Coopers & Lybrand has again pioneered several innovative, employer initiated approaches to cost management in the Dallas Metroplex. In several of our Metroplex clients, we have aggressively approached area hospitals and physician groups to negotiate cost saving PPO arrangements. These contractual agreements have ranged from freezing 1I existing charge structures over the term of the contract, to volume discounts, to capping per diem inpatient rates for hospitals. On the d physician side, our approaches have included negotiatiog t fee schedule in developing an HMO-like program that advocates preventive care, and charges the employee an encounter fee, rather than a standard deductible and coinsurance. 1 16 i i i ~ r The following identifies some of the cost mament/provider arrangements that C&L has negotiated in then Deagenton/Dalov!de. Worth Metropiex: Provider Arrnaemeat St. Paul Medical Center General discount i price Presbyteriso Hospital freeze Volume discount, price Irving Community Hospital Perethem Irving Medical dt Surgical Clinic General discount, price Denton Community Hospital Perediem Denton IPA Price freeze North Texas Physicians dt Surgeons Price freeze Lewisville Memorial Hospital General discount price AMI Denton Regional freeze , Per diem j i One of the features that makes Coopers & Lybrand unique In provider negotiations is that MedBase Tml allows us to Identify an Individual institution's primary hospital and physician providers, and then analyze that provider's unit costs per day, per admission, and per service type in ! total, by diagnosis or on a service by service basis. Even the most sophisticated Metroplex provider do not have a data base management t I system that can provide that kind of information on a detailed basis. As a major employer In the Dallas area, the city of Denton is in a unique situation to leverage its purchasing power by Initiating direct negotiations for services with area providers. i Post Retirement Medical Liability Study Based on Coopers & Lybrand's outstanding reputation in the financial services arena and our unique blend of staff with expertise In health care, actuarial science and accounting, Coopers & Lybrand has been retained on a national basis by the Financial Executives Institute (FEI) to perform a post retirement medical liability study. The stated objectives of the FEI study are to utilize the actual health care claims experience from 30 Fortune 100 field test companies to calculate the present value cost of the post retirement benefit liability for each participating company, and to estimate the impact of the proposed FASB policy statement for reporting this liability on the company's balance sheet. The Dallas office is responsible for the data analysis and the actuarial projection phases of this project. Although the City is it public sector employer, planning for the funding of medical and life post employment benefit costs will be a critical long-term issue. 'I 17 r VI. REFERENCES: General De«riotion of ervi , University of North Texas Developed managed care Mr. Fred Pole network, negotiated rates and Vice President for Fiscal Affairs services with hospitals and Mr. Joe Mitchell physician groups, for Director Personnel employees In Denton P.G. Box 13497 Developed new rates for multi. Denton, Texas 76203 option plan Telephone: 817/ 565-2103 Assisted in moving plan from 817/ 565.2281 fully insured to self insured Selection and implementation - 1 of claims administrator 125 Plan consulting and communications Section 89 Testing Texas Woman's University Developed managed care I Ms. Cirri Stephens network, negotiated rates and Director of Personnel services services with hospitals and P.O. Box 22939 physician groups, for Denton, Texas 76204 employees In Denton, Dallas Telephone: 81T ~ / 898.3531 and Houston. Developed Dew rates for multi. option plans Assisted in moving plan from fully Insured to setf•insured . Selection and implementation of claims administrator City of Garland, Texas . Selection and Implementation Ms, Nancy C. Carney of claims administrator Director of Personnel . Assisted in RFP development, 203 N. Fifth Street vendor selection, negotiation Garland, Texas 75040 and implementation Telephone: 214/203.2415 . In process of analyzing plan experience to assess benefit changes for next plan year in process of assessing feasibility of developing a managed care program. Ci Mr. ty of Beaumont, Texas In process of performing Van Barnett Risk Management I)epartmeat review of all aspects of plan administration including: Employee Benefits Coordinator • Plan design City of Beaumont Claims administration P.O. Box 3827 • Plan financial management Beaumont, Texas 77704 • Managed care feasibility Telephone: 409/890.3783 - Post-retirement benefit study 18 for Police and Fire workers. ~ 1 1 I City of Richardson We were recently selected as Mr. Bill Keffler consultants for the City and Deputy City Manager have been working with the Mr. Tony O'Rourke City for approximately 2 Assistant to the City Manager months. Our project includes: P. 0. Box 830309 - Comprehensive review of all Richardson, Texas 75080 benefits in terms of services Telephone: 214/238.4200 offered, costs. - Implementation of a Preferred Provider Program. - Selection of a claims administrator. - Implementation of a Section 123 Plan. - Section 89 Testing. - Ongoing Consulting. City of Austin, Texas Claims administration selection Mr. Steve Klepper Assisted in RFP development, Internal Audit vendor selection, negotiation P.O. Box 1088 I and implementation. Austin, Texas 78767 Performed operational review Telephone: 512/499.2070 and Contract Comptisnce review on City's administrator I Coordinated Benefits Systems. Ms. Libby Sartain • Selection and implementation Director, Benefits & Compensation of claims administrator. Southwest Airlines Company Implementation of a full-Flex Personnel Department 125 plan. P. 0. Box 37611 Developed new rates for multi. Dallas, Texas 75235 option plans. 214/902 1561 Developed managed care network, negotiated rates and services with hospitals and physicians groups for employees In Dallas. Ongoing benefit consulting. • Provided services while at Recognition Equipment Incorporated. j k 19 VII. SAMPLE LETTER OF ENGAGEMENT FOR PROPOSED SERVICES Upon selection is your Consultants, we will develop a Letter of Engagement. The Letter of Engagement will be very similar to our proposal as it will outline our understanding of the tasks to be performed, scope and approach, project staffing, timing and our estimated fees. j I i i I E i 4 i C 26 i 1 I 1 ' VI11. B OCRAPH_ IBS I ~ I~ i i I I 21 ~ I i i J r f HARRY D. SPRING Managing Partner Harry D. Spring is the Managing Partner for the Actuarial, Benefits and Compensation Consulting practice in the Southwest Region. In that role, he is responsible for: Qualified and non qualified retirement plans, Compensation, Group benefit plans. His primary area of expertise is the design and management of corporate health care plans. He is particularly adept at helping companies improve profitability and cash flow through the control of their benefit plan costs. Harry bas directed a wide range of consulting engagements, some of which, include the following areas: i Flexible Benefit Plan Implementation. Development of a Claims Data Base Management System. (MedBase (TM)) Development of Employee Sponsored Preferred Provider Networks with local Metroplex providers. Participation in a National project to model the financial impact of the FA38 policy statement regarding the accounting for post retirement benefit costs for Fortune 100 field test companies. y Total reviews and redesign of benefit and compensation programs. i Before joining Coopers do Lybrand, Harry was a consultant with William M. Mercer, Inc., in Dallas, Texas. Prior to that, he owned his own firm which specialized in corporate benefits. Harry is a licensed insurance counselor and a Chartered Life Underwriter. He is a graduate of Texas Christian University with a Bachelor of Arts degree. Harry is currently serving as a member on the Dallas Business Committee for the Arts Task Force and is also a member of the Dallas museum of Art Corporate Council. I I 'I I I 1 i DAVID J. PALATIERE Senior Consultant David J. Palatiere is a Senior Consultant io the Actuarial, Benefits and Compensation Consulting Group of Coopers & Lybrand's Dallas office. His areas of practice include: Group Benefit Program analysis and implementation Group Benefit Communications Flexible Benefits Program design ` Healthcare Cost Containment Program planning, implementation and analysis Healthcare data processing h Claims processing systems 4 ' Evaluation of HMO's and PPO's His current projects include: E Assisting several clients with the installation of the MedBase reporting system. MedB&se is a data base reporting system which, upon installation, enables j organizations to better analyze, monitor and control healthcare costs. I Assisting several clients in establishing a comprehensive employee cost containment program. Assisting several clients in evaluating Health Maintenance Organizations (HMO's). Before joining Coopers & Lybrand, Mr. Palatiere was responsible for directing the Health Care Systems practice of Ernst & Whioney's Dallas office. Prior to Ernst & Whinney, Dave was employed by EDS, Inc, and worked as a systems analyst it) the Texas Title XIX Program. Dave holds an MPH Degree majoring in Healthcare Administration, and M.S. and B.S. degrees in Science. He is a member of the Texas Hospital Association. i I I I I l bIEQAN CROSSIN Senior Consultant r Megan Crossin is a Senior Consultant in the Actuarial, Benefits and Compensation consulting practice in the Dallas office of Coopers & Lybrand. Her major areas of A concentration are the financial and administrative aspects of group medical, life and LTD benefits. Her experience includes: Designing, pricing and implementing it Flexible Benefit programs for clients; Performing systems reviews and claims audits of major insurance carriers; Assisting clients in analyzing their benefits data in order to make budget and plan design decisions; and i Assisting clients in complyinq with Section 89 testing requirements, Megan has 14 years of actuarial and underwriting experience for group benefit plans. Prior to joining Coopers dt Lybrand, she was the Director of the Actuarial/Statistical division of Blue Cross and Blue Shield (N.H./Vt.). Megan received a degree in Mathematics and Economics from Manhattanville College and a Masters In Business Administration with a concentration in Management Information j Systems from New Hampshire College. I , i 4 l i V i GORDON GRUBBS FCe- Senior Consultant Gordon M. Grubbs, F.S.A., is a Senior Consultant in the Dallas office of Coopers & Lybrand's Actuarial, Benefits and Compensation consulting practice. Prior to JoiniaL the firm, Gordon was employed with Diversified Consultants, Inc., In Dallas, Texas, working primarily with self funded welfare plans, while attending Southern Methodist University in the doctoral program of the Economics Department. Gordon's areas of expertise include: Design, pricing and valuation of life, disability and health plans. Design and analysis of PPO plans. f COBRA rate certifications. 1 i General consulting in the areas of plan administration and regulatory agency compliance. I Gordon graduated with honors from the Choate School, Wallingford, Connect; :ut and received a Bachelor of Arts Degree in Economics from Rice University. Gordon is a member of the following organizations: Fellow, Society of Actuaries, i Member, American Academy of Actuaries, , Fellow, Conference of Actuaries in Public Practice, Member, Actuaries Club of the Southwest. t IIi i I I ~ 1 I i ALYCE TENDER MEADORS Senior Consultant Alyce T. Meadors is a Senior Consultant in the Actuarial, Benefits and Compensation j consulting unit of Coopers & Lybrand. Prior to joining the Firm she was the Director of {I Corporate Benefits for a Fortune 200/major manufacturing company. She also had experience as Director of Compensation and Benefits, Director of Financial Services and Attorney during her tenure at the company. As an attorney, she specializes in employee benefits and compensation law, including legal research, drafting and rendering opinions, and employee benefits plan design. A representative selection of Alyce's applicable experience includes: r~ Design and implementation of a variety of defined contribution plans, including 401(k), class year, ESOP and non-qualified plans. E Development of compensation programs including executive compensation programs. h i Ensuring plan compliance with the various benefits laws including ERISA, TEFRA, DEFRA, REA and the Tax Reform Act of 1986. Negotiation and management of the GIC bid process. Design and implementation of qualified and non-qualified defined benefit i I and welfare plans. i Alyce holds a Doctorate of Jurisprudence from Indiana University Law School and a Bachelors of Science from Ball State University. I She is a member of the American Bar Association, Indiana Bar Association, and Southwest Pension Conference. 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N a llWOryl rr.ww....x•.w •.•.Ii..liym..us-dt p 43.515 4{0.74 a IIY, uO Is1,w 131,27 IN,w 801,10 Yf0/rIC 113.Ng1 nnx•••"'O""•"••'OOO°«n•.ww••r•'•••.n.«.r 4 U-Spa 1 4141NNIY.73/tE 11,180 11, 1ri 11,111 11,180 11,14 11,7q 11,370 wrw••u.• 13 . Sri yri $1.770 91,711 .u.. rmlt alw4ry In 1 Sri 1/0 11.261 11.111 . • In 61,tr 11,710 01,707 91,rf1 Y its III 4MIf 1132801 4!.... 63.. .In.. 11,71/ II,IY 1;,717 11801 ....n~ I"n 14 7,/t ,SII 41. 180. 14 IS.kI 380801 YIOIY 80,3,.....µ'................ ,111 Ii. kf 4.,411 17.32 11,110 17 NIN N I3, . 117 91......................... "'!Q1 .....N 111 113 1.91 N Q7, Ni 7.11 .m«rw.~rMi....w. ...'.1.111 U6,............ 84.61? .......:I17 ........u:~ .....U.6?9.....$4,Pro ad N80.700 1.17 ww „ 475 4 I31.0n 111 751 80,031 N,Hf Y•• ISI,NI .wr.ruNr« xu.rrwu 11 1 17, In n1 /1.,807 111,801 .er,331 N 1310,01! A •.«w.xu«uNw«.wo«u, . Nw.µ:.....wk.~wxx..... xu,ww•oww•u«w.wuxuwwuwu Nn ««.N .......I.41 Y ultvc ••ww...r.ww•.w ~ w••N'...w.ouu 1111.011 14.10 11,44.2001 N, , 13,3NI 1471.7807 .w.nw•.•...«o ...............•....uh........ n..x•.... .••..4ia ~ou,iwuw 10141 ....wxN.w.....•.rwww 1171 11.313 311,21 O.Plis 4 4141,954) R01111K aRMi ,44 I wda-sas Nw..M«\«x«.N..••«N4...... wN.......x......N«.,. (4,3380 1111.3.01 11 1/,8031 l4ri,t111 1NLIH3 000, 107111tROr.I . w1M N.ow•. MAN 912,911 101,{2 {100,111 1101,74 fIY,W IIY,w 1101,w 4180,(2 Y 101 of N.wLq..•NO.NIyNN.w.w.N.w•.ww.p... .uunoun no.moro /SM117 1111 1AM$ 10RMNf•w 110114 080 42 {101,14 ,117 11N,w 1 1101 • [1112/4 110180, W11C1 . I1p,M 0 OLIY11C1►Ytlr Ifa,t0014•w h01,w 112,401 1101{2 , i r.~•.r.«wwrrr..u 1130/111101 I I •..wnuu•Nwrw•w unn•.N•w•nr....n••.rw...w«....n«wu..ax•.,w.•.....•.•...u..•,......rn......u..a•.•• w. I t i I I I rA 9 l 4 ATTACHMENT 11 SECTION 89 DATA ELEMEM 1, SOCIAL SECURITY NUMBER 2, DATE OF BIRTH 3. DATZ of HIRE 4. DATE OF TERMINATION s, MONTHS OF SERVICE OR WEEKS Of SERVICE If NOT FULL-TIME HOURS OF SERVICE IF NOT FULL-TIME 7, &prATION CODE (IF ANY) Indicate different company locations, ' 8. AgAgATEOORY (IF ANY) Indicate various job categories. 9, EMPLOYS . AUI I ATION full-time part-time - other (explain) { 3 10. C.4~.'°'v~"~~N (CURRENT YEA ~~NO PREVIOUS YEARS Iaeludes all taxable wages, Islaries, earned Income, overtime pay, bonuses and commissions, plus any elective defers .~s under a cafeteria pIS@, a 401(h) plan, a SEP and a tax-sheltered annuity. If life is based on salary, Indicate the salary used to determine the total amount of life lasurance. 11. Pt its I'ART1C EA= I Indicate the health plan In which the employee Is a participant. (Le., HhfO, + PPO, Indemnity, Dental, Vision, etc.) Indicate the Term Life Insurance Plans in which the employee Is a participant. Indicate than onte group legal plan! Indicate rtcwhich plan he employee II ail participant). Indicate whether the employee Is a participant of an eduutlooel assistance program. Indicate whether the employee is a participant of a depeodesl care assistance program. 12, I evs:L OF COVERAOIE For each plan. Indicate the level of participation that the empl- a selected. I 13. Fue~.Or"oyi o=tb*Uj1QaS1 rovide the mount of employee coolr{butfoo made to each plan; both pre- tax cootributloas and after-tax contributions. I 14, rn~erue~TF.D EMPLOYjf~ fadicste whether the employee Is a highly compensated employee as defiued by the Internal Revenue Code Section 414(q). LS. ~lttt.v( .M[ Indicate te wselher the Sys owners or the top 10 paid employees have any family members who are classifled as oon highly compensated employees. t 1 I~ f rA 4 c SECTION 69 PLAN INFORMATI,QN 1. DESCRIPTION Of PLAN AN S°D OR DEACRIPTION OF THE FOLLOWING PL -Nl CPOVP TERM LIFE (SECTION 79) ACCIDENT OR HEALTH (SECTIONS 105, 106) DEPENDENT CARE (SECTION 129) CAFETERIA PLANS (SECTION 129) 2, ELAN ELIGIBILITY • DESCRIBE THE ELIOMILITY CRITERIA USED BY EACH PLAN DESCRIBED ABOYE. I~ 3. FUNQ]NO AR ANO mrNT f i - INDICATE THE PER PERSON PREMIUM LEVEL (COBRA RATES) CHARGED B1' LEVEL OF COVERAGE FOR EACH PLAN. ALSO, INDICATE WHETHER THE PLAN IS ►VLLY-INSURED. I I i I I 1F r ~ i I I ( 1 I I -77 a r A I Attachment III INC Cw"r I. Of 09/loin x101 Ili n INIt/M r W /N\\//w\/\1Y\\N\Y\Y\N W Y W 111\\1/1 \I Y 1N\\1\\1\..1Y.. 1N/\111/4.1 1\1/1/N1/ W 0 111111/1 /11//\ /11.1N1 Y////N\111//11 /11\I• ....III... w W~ 01903 RI it IOY 1/ NC 01 IM M III M MA M ON Y MA N Jul 94 M 0 IIM M Wi K tOt of --11MfICl/Y11 111 3t! 3A up itl 113 III !7i 335 750 111 S,1M 1CTM •.MINI01/ 1 Z f 1 S Z { 1 1 4 1 R •MIIIIII 9411 I I M 11 40 41 It N 5 1 4 in t0N I i •Mlif 1011 1 t Z Z ! t ! 1 Z Z ! 11 ' .-Mil01 fall 11 10 10 It 10 11 11 H is l1 .,,,.'115 i 011IMM ••00"I"I011 111 1 I 1 f 1 ! I I ! 1 11 ' ^1011901114" 111 ii) N 1 30 p H 3 11) 1N 11) 14 Mt IRI IOCICH 4Cn11 ••MINIO S 1.7 1.1 0.1 I,1 11.1 54 11.11 1.1 4.1 10.0 1.1 tl.t -061 list 9411 t5~f 15.1 It.? 31.1 MA Ill./ NA N.1 till 111.1, 11.1 531.1 UMI Mlulws 4.1 Lt 11.0 0.0 61 1,11 4.1 611 4.11 611 1,0 11.5 -.011,116111 0011 104 111.1 110.1 711.2 h.l 10.11 20.1 111,1 01.1 70.1 N.1 W.I IN 10/4 ••4M1OOIM 11.11 1.1 1.1 I.1 11.4 1.7 1.1 3.1 1.1 5.1 1.1 311.1 ••110NIA 94n 41.01 410.1) 11.0 1.1 94.1 "It 51114 11.0 0.111 114.11 011.0 Iltd NwW .4/\\\YNYN\w\w\\uWNWYWWnWNNN N60NNNWW00 .YNnYNNW0 .NwlwwWUNY1nw\\NNW1N\\1N/NWIro\ N 1111Mt1I W foul 9411811 9411 \ 150 94t$ NI 1,001 Mass. IM/ W1i10 0 0105 its) / 1 I YN//NIYYN\ WN/\\N\/ N .NI\Y1MN111\ N11111111N111 \\11N1Y 111 N11.111N.......... 1N\111[ 1....1\\11...1111111N/N I N1111 1 Y f t. ATTACHMENT 1V ON-GOING CONSULTANT SERVICES PLAN YEAR 10/1/68 1. PLAN DESIGN/ADMINISTRATION PERFORM ANALYSIS OP PLAN DESIGN: ANNUALLY COVERED SERVICES PER SB 93. NETWORK PROVIDER VS. NON-NETWORK PROVIDER 1 DESIGN CHANGES BASED UPON DATA ANALYSIS. PERFORM REVIEW AND SION•OFF OP SPD/AMENDMENTS. ANNUALLY ASSIST IN PREPARATION OF S500 FORM REQUIRED ANNUALLY BY DOL FOR IMPLEMENTATION Or SECTION 125 PLAN. PROVIDE ASSISTANCE TO RESOLVE ADMINISTRATIVE PROBLEMS ONGOING INTERFACING WITH CLAIMS ADMINISTRATOR AND UR FIRM. I i PROVIDE TECHNICAL SUPPORT FOR REVISIONS TO ANNUALLY MEDICAL PLAN COMMUNICATION MATERIALS. 1 11. CLAIM CONTROL PERFORM OPERATIONAL REVIEW/AUDIT ANNUALLY OF INCUMBENT CLAIMS ADMINISTRATOR TO ENSURE APPROPRIATE INTERNAL CONTROL (100 AC CURACY I, LEVELS, ETC. NEGOTIATE RATES WITH INCUMBENT CARRIER, ANNUALLY UTILIZATION REVIEW FIRM. 111. FINANCIAL CONTROL TRAIN CLIENT PERSONNEL IN DEVELOPMENT or: MONTHLY PROFIT/Loss STATEMENT. UTILIZATION& BUDGET REPORT. 1 PRECERTIFICATION REPORT. UPON COMPLETION OF TRAINING PROGRAMS, WE ANTICIPATE THAT CLIENT WILL BE RESPONSIBLE FOR THESE REPORTS. I I i k Page Two DEVELOP RATES FOR UPCOMING PLAN YEAR. ANNUALLY ATTEND PLAN MANAGEMENT MF.BTINGS WITH CLIENT MONTHLY PERSONNEL. IF ADDITIONAL MEETINGS ARE NEEDED/ REQUESTED, WE WILL OBTAIN PRIOR AUTHORIZATION BEFORE PROCEEDING. IV. DATA MANAGEMENT DEVELOP STANDARD MEDICAL PLAN REPORT! QUARTERLY AD Hoc REPORTS TSD WHEN REQUESTED, WE WILL PROVIDE CLIENT WITH A PRICE QUOTE TO PRODUCE REPORTS AND OBTAIN AUTHORIZATION TO PROCEED. V. PROVIDER NEGOTIATIONS CONTRACTUAL COMPLIANCE Simi-ANNUAL { WE WILL REVIEW CLAIMS DATA TO ENSURE PROVIDERS ARE BILLING FOR SERVICLI PER THE AGREEMENT. ASSESS SAVINGS OF CONTRACT! ANNUALLY J ' - WE WILL ANALYZE THE t1 AD.SS DATA 70 ASSES! PLAN SAVING! PER HOSPITAL AGREEMENT. i PERFORM PROVIDER NEGOTLATION ANNUALLY • ASSUME! CURIIENT NET% ORX FACILITIES REM.UN UNDER A PERDIEM ARRANGEMENT, i h i I I f r 9 t Small Company, Big City: _ Negotiating with Providers l in Dallas I -1 Elizabeth P. Sartain and David J. Palatiere f` I I Ah, Dallas home of the Cowboys, 92 hospitals, a passel of billion-dollar businesses and countless people named Ewing. Home, j too, of half the approximately 2,000 employees who work for Recognition Equipment, Inc, (REO, a manufacturer of data cap- ture systems that make human readable and bar-coded irsfor- mation ready for computer processing. Like m3nv of its Dallas- area neighbors, RE[ has experienced higher and higher health care costs. Unlike the companies with much larger employee pop- ulations, howcver, one of the must attractive health cost manage- ment strategies - direct contracting with providers - is not avail- able able to a small company like REI. Rights' l Wrong - though most observers would have agreed not long The prevailing udsdom luu been that 1 ago. A company with such a potentially low volume of patients companies offering health rare pro- would not have drawn the interest of big-city health care pro- eiders only a small volume of eiders, even those willing to deal directly with purcha;ers of their services. Not a company to yield easily to the popular wisdom, patients have little f ;lfinanc in or- however, REI began in late 1985 to take steps that others could rangeme favorabie roal ar- follow. Working with Coopers & Lybrand, REI developed and Toping to aRfl n it the mpony implemented arrangements with four Dallas providers - i-tclud• wilding to change the prrva;lrng ing hospitals and physician groups - for cost-effective, managed wisdom. i health care for its employees and their dependents. A Progressive Effort RE[ is innovative in the management of both its h,iman and its 4 financial resources. The Company began an aggrrgsive benefits cost containment program in 1985 by installing a Itexible, cafe- teria-style(Section 125) plan and contracting with a more efficient, sophisticated administrator for its self-insured medical plans. Un- der the flex plan, employees and their depen Jents can choose REI saw its efforts result in lowered medical coverage from among two group indemnity plans, various health care co!rs overall in 1986, HMOs, a dental plan and a vision care plan. while its per-employe rosts rose. In 1986, REI adopte,3 pore health care cost containment strat• Senior executives are notloohingfor egies, such as elimitiarinf; coverage of nonemetgency weekend major cost reductions for three to admissions and odclinw incentives for outpatient surgery and sec- fire years. 1 l a HEALTH COSTM.iNAGF: tlENT- VOL. I NO. 3 • \IAYjUNE 1987 and stugical opinions. The Company also began comprehensive utilization review' of all REI hospital admissions nationwide, pro- vided by its administrator. In 1987, its cost management efforts are expanding to encompass the program described in this article, a wellness program and an Employee Assistance Program (LAP). The Company has a long-term perspective on its health care cost management program. \like Kelly, Tice President of Human Resources, notes, "We knew when we started implementing these programs that we would not see an immediate payback, and that three to live years would be required to demonstrate significant improvement in our health care costs. We take the long-terns approach and are convinced that through our efforts, we will be in a better position to manage our costs." Without inhowe expertise, finding ro (late, the cost containment program has worked well in many one's ua) through a big-city pro- regards and has been favorably accepted by REI employees. Al- viderslslemis an intirnidatingpros. though health care costs have leveled off, they still represent a I pert. 1'etREf elected not to ally itself significant corporate expenditure. Medical and dental claims costs with other area employers for sets- for employees and dependents under the two group plans enal reasons. amounted to $2,479,596 in 1985 and $2,166,412 in 1986. REI spent $1,583 per employee on health care in 1985 vs. $1,722 per employee in 1986, however - an 8.8% increase. Hence, though f overall medical and dental claims costs for these employees had decrea'ed by the end of 1986, per-employee costs continued to rise. I I Going It Alone Strengthening the effectiveness of the cost managemenr, pro- gram in light of REI's relatively small Dallas-based employee pop- ulation called for Creativity. Management realized the potential advantages of closet alliances with health care Pruviders. But it lacked the inhouse expertise to maneuver through the Dallas pro- eider system, to "sell" providers on the idea of working directly with the Company and to negotiate successful]), with hospitzls and doctors. Which providers to approach? [low to approach them? What if the popular "wisdom" prevailed after all? REI considered joining forces with Wier employers but decided against it for a number of reasons. The Company believed that; • Its employee demographics were unique; _ • Its medical utilization experience was unique; 0 its medical data were superior in quality to those of most other emplo) crs; a Negotiations would be slower and more difficult if a )group of employers was involved. As a result, REI chose to go it alone. For outside assistance in pursuing a Preferred Provider Organization (PPO) arrangement, RE :I drew on its longstanding relationship with the Actuarial, Ben- efits and Compensation consulting group of Coopers & Lybrand. 2 I tA P SMALL COJIPANY, BIG CI FY: \F.GOFIA II\G 1i'Ifll PROVIDERS IN DALLAS i 11111's experience shows that smaller companies - even those lo- A wa*Y around the small number of cited it, the big city - can deal effectively with health care pro. polenlial patients was suggested by t iders, anal Viii if 1981 and 1985 medical claim.i data; there were some pro- Data for an End-Run riders with a serious veiled intere.it 1 Although the Compan initially saw a PTO as a way to reduce in REI employees' health care, its health care expenditures, it was aware that its relatively small number of potential patients would act for providers as neither carrut nor stick. Its strategy thus had to encompass an end-run around the problem. T he Company's initial task was to pinpoint where its health care dollars were being anent. Using Coopers R 1.) brand's AfedliaseT3 software, REI analyzed its paid medical and dental claims for the ~1 years 1984 and 1985 to determine: •'rop providers utilized (in terms of admissions and charges); 9'rop diagnoses treated (in terms of volume and charges); *Utilization statistics, such as patient days, average length of stay, (ALOS), cost per day, cost per admission, etc. i Based upon the preliminary' analysis, REI identified several pro- eiders that might be interested in discussing a PPO arrangement. With a vested interest in maintaining or increasing their REI- generated patient volume, the Company reasoned, these pro- viders would be most likely to see participation in a PPO as an appealing opportunity. Unsure of which local providers would be willing to participate, Two approaches - a general one REI used two different approaches. it drafted a Preferred Pro- to 30 Dallas providers and a spe- eider Arrangement Request for Proposal (RFP) and sent it to 30 cific one to the Company's top six area providers, 8 of which responded. A review of their proposals providers - were used. The city's indicated that the Dallas provider community, in general, w'as not provider community proved gener• prepared to operate in an "at-risk" environment. ally unprepared to put itself at risk. having identified its top providers with respect to utilization and charges, REI's second approach was to contact them and initiate formal discussions. Of these, three were willing to discuss the kind of program that RE[ was contemplating. Howvrver, one of them was not considered because it had been identified as the highest-priced provider serving REI. Among the others, one would II discuss only an exclusive provider arrangement, and two indicated that they were not interested in developing negotiated price ar- 1 rangernents. } Based on its data, the Company decided to pursue talks with three of the top ranked providers, adding other potential pro- viders to its target list according to its geographical needs and to Data analyAr indicated that the further responses to the RFP. Company should go beyond a PPO to a full managed care program. Refined Data and a Refined Approach "Efficiency statistics" for targeted The accumulated data disclosed employee demographics and providers added valuable informa- existing patiendphpsician utilization patterns that, combined with tion to REl's negotiating bare. 3 4 111C.i1./'/I C(1.ST .~la.\'.iGh:.1iF.,\'T • VOL. 1 NO, 3 • \IAYtJVNI`: 19 early responses from the providers, led the Company to modify its strategy. REI decided to blend the utilisation review capabilities of its medical plan administrator with financial arrangements with a dumber of selected providers. The administrator would apply its existing prccertification, retrospective review and case man- agement efforts to the services of contracted Dallas-area pro. eiders, as well as keepilLg track of those providers' adherence to contract provisions. \leamshile, employees would be able to choose from a number of cost-effective doctors and hospitals, All this, the Company concluded, would constitute more than a P110; it would mean a managed care program for REI. Data on those providers who were identified as "players" were further refined in a search for "efficiency statistics"; the number of each REI eniployec'depezident visits to each provider; the cost per day of each case treated by each provider; the cost per ad- mission for each; and the top 25 diagnoses by provider. I-hese breakouts established which providers were treating which kinds of REI cases, as well as comparing the efficiency with which dif- ferent providers were handling the same ailments. The providers heating the most f<e- The analysis revealed that the live most common major diag• gnenity-noted diagnoses among HE'1 noses among REI medical plan participants in 1984 and 1983 employees and dependents were the were mental and nervous diseases, circulatory system diseases, major targets of negotiation efforts, gynecologic ailments, childbirth and digestive system disorders. They included three hospitah, a The providers treating these and other frequently-noted diag physicians' PPO within one of the noses in the most efficient manner, according to the REMoopers hospitals and an independent phy- & Lybrand evaluations, became the focus of ensuing negotiation sirian group, efforts.1 hey included primary and tertiary care hospitals and two physician groups: 0 Presbyterian Plan PPO (which included Presb terian Hospital of Dallas and Presbyterian Physicians) • St. Paul Medical Center • Irving Community Hospital •'fhe Medical and Surgical Clinic of Irving (ph)sician group). The Providers' Reception Fhe decision to target these providers for participation in REI's managed care program was logical, and it stood the Company's negotiators in good stead as they made their way through the Dallas provider community, For one thing, most of the Company's health care dollars were already going to these hospitals and phy- Able to offer only a limited financial sicians, so it could best manage its costs by concentrating effort incentive to employees in the first on them. For another, it was believed that these providers would year of the program if cost man- be interested in securing revenues and an audience for their an- agement goals are to be achieved, ciliary services (such as wellness programs) by becoming "prc- the Company hopes that a desire to ferred" for RF.I employces/dependents. maintain doctor-patient relation- In addition, employees and their families would suffer little or chips will also motivate employees to no disruption in their doctor-patient relationships if these pro- s we the selected provider, eiders pat ticipated in the program - an important factor in any 4 t Fi V c (MII'ANY, lilt; t l I1', NECCI 11.111 NG 1cl III PROVIDERS IN DALLAS event, hilt one p.+iticul,uls tnui.Il to the nt:uta,gemcnt of RITS health costs. REI's ucdic,tl bcneli{s plmi nurut:dh Ict)s ,ytfr of cocci Cot c hargcs of L.r a Sb 5u of S500 deducible (tlcpcuding upon the plan). I o i l tect its ohjco.(kcs in the first ycar ul the managed titre prugr:uu, the Cutup,m) is offering ctnplo)ecs it limited fi- n:uci:tl incentive to use the sclcttcd huspit,tlS aut(1 phssiciatts. If the)' du so, the plan trill pa)' 90'r of rusts instead uh the usu,d 9011; the dcductibbe rcuIa;IIs the same, (W(lour, etnpla)ccs,Ilsu benefit frurn participating providers' lower tales.) l'Irinuueh, stir. Less tsith the managed Late prugran) may permit plan redesign that gives eniplosees ;In intrease•d financial stake in using the contracted providers. The approach to all the providers was the same, REI simply ' ~ scanted w hate mote control user buying produus - in this case, { health care, I he Comp,m) had some ideas - backed up by solid data on votumc and costs - about huts' to achieve this goal ill a tray that could also Ircnelit their bottom line. Sums of the providers niece readily receptite to this approach, and some Iserv not, As noted pretious!'j NO Of SIIL' Six hospitals lllltlalh cuutacted The topaFot on RE!'e truget flit tars declined to negotiate prices. '[hey questioned REI's icquest for 0(04pied b ' s a hmpita! returtant to J concessions based nn their belief that their charges fat specific rreguhateprfcetbecarrsensowndow E procedures Isere die lowest in the area. They also noted that RE I's ~rstebns ewer not Yet equal to the task. relatively small emplo)ce base gate it less le%croge than larger The Companyuasdetmizinedtoen - Dallas companies. One pro%ider was I'CIUCtant to Iecorm' involved fiat Ibis hwpital's participation, because its internal information s) sterns had not yet been dcvel. oped to allots for designing negotiated ariangeruents. Yet this hospital was at the top of REI's target list. 'Lo implement its strat- egy, the Company kncts it had to work hard to persuade this provider to enter into all agreement. Playing the Came the internal operations of the health care prodder s)stcnl in any community are often elusive to nun health care people, Ne- gotiating in this strange environment requires new insights, as a few companies are beginning to acknowledge by recruiting their own health care specialists and/or engaging consultants with ex- pet tise in the field. On the provider side, mare and more hospitals and others are hiring professionals to cuntatt and initiate disCtis- If signs with corporate eniplu)ets, Up to this point, REI had spent well titer six months dealing The entire program inns in danger with the key target hospital's management without making sig. of bring scrapped after nearly eight nif icant headway. Then, the large group of physicians identifted mottles of frustrated effort when the as major admitters of REI patients to that hospital became in- key to forward progress was distov- %ulred. At a time when the project was becoming more and more ereel. frustrating, even in jeopardy of termination, the intei%entfou of this group became the cltalyst for fuiward niovcmeut. 'I he physicians in the group were incited to participate in an arrangement Aith REI -erne tshich would, if successful, enhance their incomes and those of the hospitals Isith which they were affiliated, they sere told. REb described to the physicians the 5 HEA1.711 COST .1r:1.\'at;r:,4r7;.\'!' • VOL. I NO. 3 • MAY JUM, H47 adrr,uuages of enc,uuagiug Company employees to bus he.tlth cafe front their group and its associau•d hospitals instead of troll] other doctors and hospitals in the Dallas area. Unr n/ the urns uJ "p6ridug the I he Company kne,v front its data analysis huts much revenue gfwjr" i, to n+nlrr,hrrul how irnpor- RE,I eugrlovres were ;dread,' orating for these docmrs. And REI taut Ph,lw7an~ are to horpd,rls'rr] - knew that these phgsicians here the ones who chose the hospitals ruurr.;Indpht%Oa w urrirrro0o'd fir], and di,"mt-d the ore received 6y, many of itsrn•ployees. So if a horpirrrPr unu dlingfos to eorr the Coo]pany teas not surpt iced n lien the physician group reacted rider nr]u irlero von ]mere r!r (if fed fat orahh to the idea of bcarming a preferred provider fm its rhmr mcon•ec, nt,ma,ged care prograat, fn turn, donors ill 11'e group Filet •sith the key target hospital to try to persuade its Inanagentent to con- sider RE. I's proposals seriously. The Negotiations I lie exteusivedata analysis Ihat preceded 0%erturestoproviders scented to boost REI's creclibility frith the hospitals and doctors when meetings finally took place, Several hospital executives said that REI was one of the few employer groups they had eucoun• tered that could knowledgeably support its inquiries with hard data. Among the data compuneuts that most impressed thern were; I •'I'otal number of Rk I admissions to each of their institutions per sear i * Diagnostic category breakouts of those admissions i • :overage cost per diagnostic category, per admission and per clay. The considerable rr.rvu~ces r.v- Additionally, Ifte d;ua,sere offered as a discussion opener, not pended on data rollrrrion and real- as a cudgel: "You c.:n tell us if we were wrong," REI said, "but untion gave RE1 an unte.nral off. here's what we'%c learned about REI employees and your hospi- goriating advantage. Specific data tai." After evahlating the data, the providers agreed with most of on each prorider proved rrpecially the information REA presented. Each, then, had to shape its con. earful, since each tur:]edour tohave tract negotiation strategy on facts available and clear to both par- unique nerds. ties, gi,ing REI an advantage that mauy employers do not have when developing contracts with health care providers. In the long run, the time and other resources allocated to data collection and analysis Eairl off in money saved for REI, As negotiations for what came to be called the" preferred Health Network" progressed, the hospitals and physician groups turned out to be quite different front each other, 'this meant tailoring negotiating approaches to each provider so that each agreement + that emerged was unique. In some cases, formal contracts were I developed; in ushers, letters of understanding were acceptable. One thing of which everyone was aware, however, was tite now city of these proposed arrangements. Consequently, all initial con• tract3 were signed for one year; January I through December 91, 1987. Renegotiatiom are slated to begin in the fall of 1987 and will take into account the progress of the Company's relationship with each provider it] terms of quality, volume and cult of care. While the details are, of course, conlidential, the general arrange 6 l I i SNIALL UYNIPANY. Bl(; CI I1': Nf.GOftA l INC; ".1111 PROVIDERS IN DALLAS y f The Medical and Surgical clinic ojlrzdng, menu vh paragrapphseach of the pro%iders are described in the folloHing I . Ih ~ The Medical and Surgicei Clinic of Irving This provider is a large, multi-specialty clinic with 26 physicians who pro%ide care to a great mn,ty REI emplo)ees. Located in the Dallas suburb of Irving some three miles from REI, the Clinic was receptive to the Company's proposals from the beginning. Knowing that this physician group practices cost-effective med• icine, REI simply wanted more of its employees to utilize the A Clinic. The resulting arrangement reimburses an employee who does so 90% of charges after payment of a deductible, All the doctors at the Clinic benefit from b,.irg part of RE1's In onephyaicians'gronpuv!brehich 11 Preferred Health Network, so there is an advantage for each in a contract has been negotiate, the networking his or her high quality/high efficiency practices to the doctors are at financial risk if they others. All will have access to utilization review reports on REI do not treateach REl parient within cases, and they may raise treatment questions among themselves, agreed-upon cost and uali pa- The financial incentive is there for them to work toward providing rameters. 4 ry optimally appropriate levels and types of care to RFA employees. Presbyterian Plan PPO ~I Presbyterian Hospital of Dallas, an 898-bed institution, was ap- proached because REI wanted to include in its program an cfli- y cient, full-service provider serving employees who reside in North 3 Dallas. The Hospital had developed a joint PPO %cnture the Presbyterian Plan PPO - with its medical staff by the time of RE I's initial contact. The Presbyterian Plan PPO expressed a will- ingness to negotiate costs from the beginning and developed a good rapport with REI in the process, The contract the Company developed with Presbyterian is exclusive to those doctors panic. ipating in the PPO. It also includes all other inpatient and out- patient hospital services, j 1I 7 I it 1 1 11F..41.77I C't1SI'.tld,\'AG1..11F..\`f • \'O[,. .l NO. 3 • \IA1' UNE 1957 A jiee.e ore 1987 rlmrkes acrd a t he agreement constitutes a freeze un all hospital charges ikwolWt lxued on palietl voNtne are through 1987, plus a volume discount ptedicated on RE1 inpatient major Jeatrors of the contract with and outpatient utilization of the hospital. An RU entp1mce'de- a hospital and its onus PPO p1114- pcadent mast use oueof the Presbyterian plan PPC7-enrolled phy- cian-pnrtiriparrts. 7'he hwpttul sk ians ill order to be counted toward the patient volume needed tronld like the (marigemeit to spur before the discount kicks in. more of its phoniness iopm the in- REI therefore has an incentive to point employees and de- horne PPO, pendents towald these Presbyterian doctors. Employees' incentive to use the Presbyterian PPO physicians is coverage of 90"t of their eligible charges, rather than the custonlat} 80'x. And Presbyterian doctors who have net yet joined the Hospital-based PTO might o when they see that PPO physicians are be nxrti%aued to do so' enjoying increased patient volume and revenue. Since th!y have it financial incentive, it is also possible that REI people who use non-11110 physicians at Presbyterian will discuss with them the subject of their participation in the FPO. .Many employers would be delighted Hard negotiations took place before the Presbyterian agree. to be offered a per-diem arrange. tttentwas signed, 'Ihe hospital at first offereaREtit contract based rnent by a provider. In REI's case, on per-diem charges - often a highly desirable arrangement for preparatory %mily allowed the Cnm- an employer. Here again, though, REI's preliminary preparations pony to recogniu that a hospdal's proved valuable, for the data indicated that these per-diems were proffered per-diems were unaccrpt- excessive in light of RE( employers' utilization history with Pres- I able. lwerian. As a result, RE.[ declined the per-diets arrangement offered. St. Paul Medical Center St. Paul Medical Center, the sixth most utilized provider of hospital services to REI medical plan beneficiaries, has 600 beds. In this hospital, the Company was seeking an efficient tertiary care provider serving employees who live in the Irving area. Al. J ready inyolyed in several Dallas HN10s, St. Paul was very expe- rienced in dealing with purchasers. It ranked lowest on REF.-, targeted provider list, as it was not absorbing as many Company dollars as the other major providers. So REI's bargaining with St. Paul was less aggressive than in other cases. Along trdrh a freer on priers for The contract that REI and St. Paul signed was relatively simple. 1997, an arrms-the-board durount REI obtained a frcetc on all hospital charges for 1987, along with on charges billed to REI was ne- an across-the-board discount on all charges billed to REI during gotinted with another hospital- ono, the year. St. Paul has already benefnted from working with REI, which went on to be rhosen as the haying recently become the provider of the Company's new, com. supplier of the Company's wellnrss prehensile wellness program.. program, Irving Community Hospital A 113-bcd hospital just outside Dallas, trying 0,minunity 11os- pital was at the top of RE1's list of most-utilizeJ, efficient pro- Per-diem; below the prevailing fire- eiders. It hall been cool to the Company's prop)sals in the early for-service charges tire the main fea- going and sat with REI through some difficult bargaining sessions. true of the arrangement with REI's Negotiations ultimately ended with a well-crafted agreement to most utilized, rffrrient pros ider. This a list of 1987 per-diem charges specifically geared to RE[ etn• horpilal had been cool to the Coon- plovees' medical, sus gical, special care (e.g„ intensive care, cardiac paytY's rnrly proposals, (are, obstetrics) and other service needs. No discounts per sr are I L H J i I ti 3 SMAI l I11' .\IXA)I1AIl\l %kIIII PRtl\'IUERS IN I).1I LAS r • •Ia f'rrlbttrrhln Ilospital. 1 I I ~ ' s I I ■ i.attt~ tamvwti . 711 I St. Pa d AIrdirrd Ceorer. imohed, but the per-died) charges are designed to be bclm~ the It took a full lair to gather sold hospital's regular ice-for•smice Charges. analszr drdrt awl brirl;; lhese rolt- hrrrls to fruition, Along wah nun- Timing;CommunIcations beg its rehtiomhipv frith In-oviders. A sear eLspsed bet6%cen the oroei of Rt,I's (Ima•g:uheting and the Comparrr has been wtohing ou anahsis ss04. and the signitt,g of Ihesc a7nit,10s, the grCatcst eurplelirrerlerlwr+sAtlightrfitshen- antouut of time %Nas consumed hs Mom to interest the proOlct rlit rlie) O; rd. ,t 1 I HEALTH C05TMAA'AGEMENF • VOL. 3 NO. 3 s MAY]UNE 1987 ronununity in listening to RIA's ideas, Once that hurdle had been cleared, it took four months from the first provider discussions to final contract signing. The milestone event in the process was precipitated by the phy- si6au great p, which, seeing the ntet it of RE l's proposals, prompted the key target hospital to consider them. Other purchasers - large and small - have had similar experiences. Physicians, w Ito gen- eralh have the biggest impact on a corrrpany's medical expendi- tures and a hospital's revenues, quite often pace the way toward discussions with other providers, Provider relationships are one side of the coin. Employee re- iations are the other. To avoid confusion during a benefits change- over, employee communications must be carefully and consist- endy planned and executed. REI used an outside benefit communications expert to develop two internal marketing pieces for the Company's Preferred Health Network. These were ap- proved by the Network's providers, REI will maintain ongoing communications using a newsletter and is planning a benefits fair ro further educate employees. This communication process also I provides an excellent opportunity for providers to market their services and gain recognition within the community, The Many Roles of Data Data played -and continue io play A purchaser cannot negotiate effectively without good data. man yuseful roles in RE1'shealth Carefully analyzed data are the key to effective provider negoti- cost rnartagement effort, sonic of ations - and the smaller the purchaser's local employee popu. them obviotu, others less tongrble. lation, the truer this is. lnforrrtafion serves a ron,pany es- Identifying the right providers is the first job that data can do pecially wfli when the pressures to for an employer. Suggesting the appropriate providers to ap- rontaier costs are intense and pro- proach, the order and perhaps the tune of the approach, are other riders' 4 ffrrs look ternpung, functions of data. Then there is the credibility that good data lend to a purchaser's negotiating stance. And, of course, data are es- sential to establishing and monitoring various financial arrange. ntents. For example, Presbyterian was not the only Dallas hospital to suggest new', but unacceptable, per-diems to REL Other health care purchasers are likely to receive similar offers from local pro- viders, Many will be negotiating under serious cost containment pressure. 11'ithout complete and comprehensive background in. formation, it can be tempting to accept a provider's offer, Without data directly applicable to each provider with which an employer 1 negotiates, one provider's reasonable offer may stern - but not he - equal to another's. In some instances, purchasers need data to see that an offer will riot be as cost-effective for them as con- linuing to pay fce-for-service charges to a provider would be. If a proposal for volume discounts is laid on the bargaining table, a putrhaser must have data to prove that employees rep- resent it given patient load to a given pruyider in any one year. An employer must also be able to calculate how many patient days above that nortnai yohnne comprise a reasonable trig};ervpoint for 10 i t i V SMALL( OMPANY. BIG (:111': NFGO1IA I ING 11II II PROVIDERS IN DALLAS the discount. And (1,11.1 are required fi), a purchaser to figure Out the must adsantagcuu, discount rates. AN prat ider contra( is are signed and implemented, their %aIue and wurkabilitr can be monitored ordr by amassing new data and holding it against the benchmarks created by the earlier statistics. Coopers & Lybrand will use its Medfiase9 system to (heck REI's quarterly medical dairos fix each prucldet under contract in 1987. It will scr'utinire these (laims to be sure that REI is getting the agreed-upon discounts from St. Paul and Presbtterian (where matters are sonrewh.u more complicated because not all of that hospital's du(tors are intob cd in the arrangement); that ('barges r ate not creeping upward among pro%iders committed to Freeiing them throughout 1!)Si; that the per-diems agreed frith Irving I Community HusIjital are being properly applied; and that the arrangement faith the Medirai and Surgical Clinic of bring is I working smou;hly. All of this infntmation and more will curve into play when contracts with these providers are renegotiated, Once such a monitoring system is set up, it shoulti not be expo iske VMS P. 5'rsrlain to maintain. What's Next? ` REI has recently installed an aggressire tsellness program for its Dallas-area cmpIoyee,, as mentioned preciously. Later this year, I ' it plans to round out its cost containment program by imple- 1 mtnting an EAP featuring rates negotiated with providers of care i for employee/dependent mental and nerrous(I is orders, substance E abuse and related problems. fhe C:ompaon's dental claims costs rose from $387,000 in 1989 to $131,000 in 1986-some I45% Hence, this area is also riewcd as one where there is a great uppostunity to (untrol expenditures. To help accomplish this, REI is considering clerelupnwnt of a dental PPO whi,h would employ the santr methodology used ill medical pro%idcr contracting, , .t s i. Uncid Puhuiere Elitabeth P. Sartain, WB.A.. C.G.P., is Manager of Compen- sation and Benefits For REI. She preciously screed is it Compen- sation Analyst fur Mary Kay Cmirmics. David Palatiere, M.P.H„ is a Senior Consultant at Coopers K Lybrand in Dallas with expertise in health rare and bisurancc'inkmation systeurs. He formerly worked for air. Other national accotunting~com sulting firm in the ate,t uF health care information ss9fents. I II i I I i i I i I J I 1 I ~ f i i I i I E I I ~FI I I I i I I I 3 w, January 17, 19899 CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager RE: CONSIDER AN ORDINANCE AUTHORIZING THE LIECUTION OF A CONTRACT BETWELN THE CITY OF DENTON AND THE US ARMY CORPS OF ENGINEERS FOR ACCESS AND SITE ACTIVITIES ON THE 141'DROPOWLR PROJECT A LLWISVILEE -Lr -~OTTbTKT-~OR THE LXPENDIlURE OF FUNDS TIIEREFORE: AND PROVIDING FOR AN EFFECTIVE DATE. RECOMMENDATIONS: Utility Staff and the Public Utilities Board recommend to the City Council approval of the Revised Site Access and Activities Agreement between the City of Denton and the Corps of Engineers (COE). The revised document incorporated only new subsections K and L under section I of the document. the original document was passed by the Utility Board on May 119 1988, 11 SUMMARY/BACKGROUND: i ' I The Memorandum of Understanding (MDA) between the Department of ` the Army and Fi:RC requires that hydropower facilities that will be an Integral part of or that could affect the structural integrity or oferation of a Corps' project shall be designed and constructed in consultation with and subject to review and r approval of the District Engineer, and further requires that the project licensee will reimburse the Corps directly for all reasonable costs associated with the Corps' review and approval of design and construction, plans and inspection of construction for power development at Corps' projects. Government Regulations state that required funds must be provided in advance of any work activities. The estimated cost of work activities is estimated to be $60,060. COE will account for all work activities performed for requested services. At the termination of this agreement, COL will return all surplus funds to the City of Denton. On December 14, 1988, the City of Denton has entered into an 0000 Agreement with the City of Dallas to amend the existing Untreated Water Contract, dated August 7, 1985. According to the new agreement Dallas has the right to take the water supply from Lewisville Lake to the Llm Fork Water 'treatment Plant through a closed conduit after the year 2005. 'See subsection K&L of the agreement) I i 1 77 ' A J City council rage 2 Black 6 Veatch, project consulting firm, stated in their progress report 2 that the design control drawings for site and plant arrangements are 801 complete. In addition, the issue of 701 design review to the Corps of Engineers is ready to submit to COL. To maintain the project schedule, the review process needs to begin as soon as possible. i PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: City of Denton Citizens, Water and Sewer cost, Texas Municipal Power Agency and Legal Department. FISCAL IMPACT: J Plan . This project is in the proposed five year Capital Imprloavnesments f specifications is $60,000. Source of Funds: Sewer Bond Fund Respec lly submitted, 1:0 Harrel , Manager 1 Prepared by, I1 U 11 os, WreC OtElectric Utilities i Approved by, R. E. e son, xecut ve rector Department of Utilities Exhibit I Memorandum of Agreement for Support by the Corps and Establishing Procedures for Access and Site Activities by the City of Denton pursuant to tense Project AFERC 3940-001 I II Ordinance III PUB Minutes of May 11, 1988 6275U:1-2 I I I 1 I 2392L x NO. AN ORDINANCE AUTHORIZING T!?E EXECUTION OF A CONTRACT BETWEEN THE CITY OF DENTON AND THE U71TED STATES ARMY CORPS OF ENGINEERS FOR ACCESS AND SITE ACTIVITIES ON THE HYDROPOWER PROJECT AT LEWISVILLE LAKE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the United States Corps of Engineers and the City of Denton desires to enter Into an agreement providing for access and site activities for the hydropower project at Lewisville Lake; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Council, contingent upon the City f Attorney's approval of all contract and easement documents, hereby approves and authorizes the Mayor and City Secretary to execute and attest respectively, the agreement between the City of Denton and the United States Corps of Engineers providing for access and site activities for the hydropower project at Lewisville Lake, under the terms and conditions being contained in said sgr;~ement which is attached hereto and made a part hereof. i SECTION II. That the City Council authorizes the expenditure of un s n t e manner and amount as specified in the Agreement. SECTION III. That this ordinance shall become effective imme ate y upon its passage and approval. PASSED AND APPROVED this the _ clay of _ , 1989. RAYS , MAYOR ATTEST: JENNIFER WALTERS9 CITY SnTYT7RY APPROVED AS TO LEGAL FORM. DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY. _ i f , UNITED STATES DEPARTMENT OF THE ARMY CORPS OF ENGINEERS, r SOUTHWESTERN DIVISION LEWISVILLE LAKE ELM FORK, TRINITY RIVER, TEXAS i MEMORANDUM OF AGREEMENT 11 FOR SUPPORT BY THE CORPS AND ESTABLISHING PROCEDURES FOR ACCESS AND SITE ACTIVITIES BY THE CITY OF DENTON PURSUANT TO FEDERAL ENERGY REGULATORY COMMISSION LICENSE FOR FERC PROJECT 3940-001 I This Memorandum of Agreement, hereinafter referred to as "Agreement," entered into this day of , 19880 between the UNITED STATES OF AMERICA, acting through the Department of j the Army, Corps of Engineers, hereinafter referred to as the "Corps" and j the City of Denton, Texas, hereinafter referred to as the "COD." i I 1. WHEREAS, J A. The United States is this owner and operator of Lewisville I Dam, the associated lands and appurtenant works located on the Elm Fork of the Trinity River, a navigable waterway of the United States in Denton County, Texas. B. COD served as local co-sponsor for the construction of Lewisville Dam and Lake, made an initial financial contribution for the construction, and has made payments i t to the Federal Government for the incremental first cost I f IYCO42188024 I I c. t t ' V 1 dq w Y of construction of the project. Pursaant to the contract dated December 100 1953, by and betw.en the United States of America and the City of Denton. COD has a right to use a portion of the conservation storage space in the reservoir. In addition, C'~D has a water appropriation permit from the State of Texas to impound and use water in the conservation storage space of the reservoir for beneficial purposes. C. COD applied for and on March 27, 1984 was issued a Federal Energy Regulatory Commission (FEAC) Major License i - Existing Project (License) to construct, operate and maintain a facility (Project) to develop and utilise the i hydroelectric potential of the above mentioned Corps I E facility. D. COD will require access to Lewisville Dam and Lake and certain Corps services during the design and construction of the Project. E. The Corps will incur certain unprogrammed costs associated with COD's activities that will be paid for by COD. 4 I` F. Article 37 of the License requires COD to enter into this Agreement to coordinate its plans with the Corps for i l IYCO42188024 2 I I 4 A 4 ~ IY { I r I a access to and site activities on lands and property administered by the Corps so that the authorized purposes F of the existing Lewisville Dam and Lake are protected. C. The Memorandum of Undertaking (MOL) between the Department of the Army and FERC requires that hydropower facilities that will be an integral part of or that could affect the structural integrity or operation of a Corps' project shall be designed and constructed in consultation ' with and subject to review and approval of the District j Engineer, and further requirea that the project licensee will reimburse the Corps directly for all reasonable costs associated with the Corps' review and approval of design and construction, plans and specffications, and the taspection of construction for power development at I~ Corps projects. i I ` H. Division Commanders have been delegated teaponsibility for assuring the adequacy of design, plans, and construction specifications of licensed non-Federal hydropover facilities that will be an integral part of or E that could affect the structual Integrity or operation or a Corps project, Therefore, approval authority of such M non-Federal hydropower facilities rests with the Division f Commander. ~ III 1YCO42188024 3 I i ' V r i A ; F I. Article 39 of the License requires COD to enter into and to execute a permanent operating agreement for the project approved by the Corps. COD will immediately proceed with the preparation of a draft of such an operating and maintenance plan, which will be executed under separate agreement prior to initiation of the Project operation. 1. Terms of this Agreement do not affect or diminish in any I way the obligation of COD to meet the regulatory 1111 requirements of section 404 of the Clean Water Act (33 j U.S.C. f 1344). i f ~ K. Terms of this Agreement in no way diminish contract + i number DA-41-443-eng-2453 between th+ Government and the 1 City of Dallas, which provides in Article i, paragraphs 2 and 3, that the City of Dallas has the right to use the water supply outlet facilities, and may take the water supply through closed conduit. j L. COD has entered into Supplemental Agreement No. I on December 141 19881 with the City of Dallas to amend the Untreated Water Contract which is dated August 7, 1965, According to the oupplement agreement, Dallas 9 will not exercise its right to transport later in a I{{ pipeline from Lawisville Lake to Elm Fork Water f 17CC42188024 4 r" s t E ~ u Treatment Plaut, until the year 2005. Dallas will not object to Denton's Installation of a hydroelectric turbine generator on Dallas' Lewisville Lake outlet conduit for operation in 1990. Dallas agrees to obtain a non-consumptive water rights permit for water flows through the Hydroelectric turbine. NOW THEREFORE, in consideration of the mutual stipulations and agreements herein set forth to coordinate activities and outline responsibilities during preliminary engineering, detailed design, preparation of plane and specifi,itions, and construction of the Project, It Is agreed as followst 4 II. OWNERSHIP AND EASEMENTS { A. Title to all property interests, structures, and improvements held bi the United States shall not be affected by this Agreement. j B. This Agreement provides conient and authorization to COD for access to and use of Federal Government land and easements for the Project as described in the License and shown on Exhibit B of this Agreement. C. COD shall, subject to the License requirements and IYCO42189024 S I L-J' -r i a paragraph II.E. herein, possess title to all features, Cquipments, and land Whether purchased or Installed by COD and associated with the construction of the Project, Including but not limited to the following: a powerhouse structure and its appurtenances, all turbines and associated facilities within the powerhouse structure, a take-out structure and { gate, a switchyard and 1 interconnection facility line to the Denton County Electric Cooperative distribution line, D. The Corps shall have access to the Project in accordance ' with and for the purposes set forth In Article 38 of the License. ~ j E. In the event of a transfer of the License, COD shall I transfer title or agreements of all lands or rights I acquired from the United States for the Project, at time of Initial or subsequent executions, to the United Staten for re-axecutioa with the naw recipient of FERC license. i In came of a surrender of the License, not involving a transfer, COD shall also transfer such title or agreements to the United States. M. CONSTRUCTION i A. Construction on any of those features that will be an IYCO42188024 6 J I I z f L y Integral part of, or that could affect the structural Integrity of Lewisville Dam and Lake shall be performed according to designs, plans and specifications reviewed and approved by the Corps, Any modifications to Cotpa-approved designs, plans and specifications, and items where th:re is a continuation of design during construction, shall be submitted to the Corps for review , and approval prior to commencement of work. Prior to + commencement of Project construction, COD and the construction contractor or contractors shall meat with the Corps to discuss aspects and requirements of the Project construction process which could affect Lewisville Dam and Lake operation and safety. I I + H. COD agrees to submit to the Corps for approval a work { area plan which defines the limits of construction, work i areas and storage areas for equipment and supplies, When JI practicals work areas shall be determined such as to not obstruct public recreational access to fishing areas during construction except during construction of access routes and other activities hazardous to the public. Alteration of recreational facilities, including provision for temporary parking and a:case during construction, will be at the expense of COD. 1 { I C. COD shall be responsible for inspection during i 1 i IYCO42188024 7 i a construction of all Project features to assure ~f conformance with contract plans and specifications, as 1 approved by the Corps. COD shall inspect construction of those Project features that are an integral part of or could affect the structural integrity of Lewisville Dam and Lake to assure compliance with approved plans and specifications. COD shall provide the Corps access to the construction site at all times and an up-to-date construction schedule, including any modifications. The I Corps shall have the right and intends to inspect the construction of those features which could affect the structural integrity or operational adequacy of Lewisville Dam and Lake, and COD and the FERC Regional j Engineer anall be notified by the Corps of any unacceptable construction activities or of any construction inconsistent with approved plans. This right to inspect shall in no way relieve COD of the full responsibility for inspection and compliance with contract plans and specifications. The Corps retains the authority to stop construction in cases presenting an ` imminent danger in the opinion of the Corps to the structural integrity, operational adequacy or safety of Lewisville Dam and Lake. D. The Corps will cooperate with COD to facilitate construction of the Project, including routing the Ii I 1YCO42186024 6 F a r r 1 rc releases through the outlet work gates, Frovided, however, that such cooperation does not interfere with the authorized purposes of Lewisville gam and Lake. Flood conditions in the reservoir may require interruption of construction activities to evacuate flood waters. E. COD agrees that all on-site construction will be accomplished in a competent, workmanlike manner in accordance with existing FERC approved construction safaty rules and regulations, including adequate safaty precautions, so as not to constitute a hazard to the I public. i I F. COD agrees to submit to the Corps for Its approval a site restoration plan basal upon preconstruction conditions and to restore the alto in accordance with that plan. 1 G. COD shall provide the Corps, at no charge, copies of all "record drawings" of the Project features directly related to the structural integrity or operational adequacy of Lewisville Dam and Lake, as determined by the y Corps. Such drawings shall be provided within 90 days after complstion of construction of the Project. Upon written request by the Corps, COD shall provide specific construction data, such as dtilling logs or additional "rocotd drawings" as may exist for the Project, within 30 days of said request. ~ 1YCO42188024 9 i ~ JJI 1 a V s i ` lV, COORDINATION COD agreess A. To submit to the Corps a detailed schedule with projected dates for the submission of designs, plane and specifications of any structures which will be an integral part of, or which could affect the structural F integrity or operation of, Lewisville Dam and Lake, B. To submit to the Corps 10 copies of all designs (including calculations), plans and specifications, and 1 any other written material, required by this Agreement, the License or by the FERC to be reviewed and approved by i the Corps. fi V, OPERATING AGREEMENT i l COD agrees to prepare a draft operating agreement as provided by Article 39 of the License within 90 days of the data of execution of this Agreement, and to work diligently toward the execution of a final operating agreement for the Project. The final operating agreement shall be executed before completion of construction. V11 PAYMENY OF CORPS COST i A. The Corps will review the hydropower project design at the written request of COD to assure that subject i IYCO42188024 10 i r s facilities will not adversely affect the integrity or operation of existing project structures. The scope of work for the review activities is attached and marked as Exhibit "A" and forms a part of this agreement as if incorporated herein. 8. COD will pay the Corps for all review activities performed. Work which the Corps is expected to perform is estimated to cost $60,000. Government regulations state that required funds must be provided in advance of any work activities. Therefora, COD will provide the ` Corps an advance payment of $600000, The Corps will account for all work performed for requested services. At the termination of this Agreement, the Corps will return all surplus funds to COD. Should the anticipated ! services cost in excess of $60,000, the Corps and COD will negotiate to detarmins the appropriate amount of additional funds necessary to complete the requested work. Should COD fail to provide full funding at any j time, the Corps will immediately cease all review activities until full payment is obtained. C. to undertaking review, the Corps shall use dilige-icy in ` I responding with review comments, approvals, and/or disapproval@ in a timely manner. D, COD shell advance additional amounts, upon written 1YCO42188024 11 J V notification of prospective expenditures that could overdrew the funds available, for the direct costs, as defined below, incurred by the Corps associated with the review of englneering, design, construction and operation of the Project. Such additional amounts shall be paid within 30 days upon receipt of a request from the Corps. A quarterly accounting of all coats incurred by the Corps r for services performed shall be provided to COD. All i payments shall be made to the "Finance and Accounting Office USAED, Fort Worth"s and mailed or otherwise I delivered to the Finance and Accounting Office, Fort I Worth District, U. S. Army Corps of Engineers, AM CESWF-RM-F, P. 0. Box 17300, Fort Worth, Texas, 1 16102-0300. j E. CorFs charges for the following services in connection with COD's activities shall be applicablet 1. Preparation of technical studies at the request of COD relating to the Project operation, structural integrity of Lewisville Dam and Lake, or any other matter associated with the Project. 2. Review of designs, plans and a ec! f P flcetions, and construction contract modifications of Project features whirs such review is directly related to the structural Integrity or operation of Lewisville Dam and Lake. 1YCO421RRMa I I J 4 F q~ ~s i 3. Site visits and construction inspections by Corps personnel at the request of COD or as deemed necessary by the Corps. 4. Provision of copies of reports, drawings, and similar data requested by COD. 5. Consultation other than routine telephone r~ conversations with COD which involve more than an incidental amount of Corps personnel time. 6. Periodic inspections of the hydropower facility by the Corps, which will initially be on an annual I 4 basis. i 7. Repairs or replacement of any facilities damaged by COD's Project activities. 8. Providing visitor protection services, including installation of warning signs, ba:riars, etc. "Direct costa" as used herein shall include hourly charges including ` overhead and admW titration for time incurred by Corps personnel l providing the aforementioned services, travel charges incurred for site visits and meetings in connection with designs and specifications, mail costa, and copying costal rop vided, however, that no charge shall be 1 1YC042188024 13 p I i assessed for information, services, or relationships that would normally be provided to the public at no charge. VII. LIABILITY A. COD agrees to Indemnify and hold harmless the Corps, its agents, and employees from any loss or damage or I liability on account of personal injury, death, property damage, or other claims reduced to judgment or as mutually agreed to by COD and the Corps, so long as and to the extent that such loss, damage or liability is caused by the intentional tortious acts or negligent acts 1 or omissions of COD pursuant to this Agreement, except h for any lose, damage or liability caused by thn intentional tortious acts or negligent acts or omissions of the Corps. Nothing herein shall impose liability upon COD due to the construction, operation, or maintenance of Lewisville Dam and Lake by the United States. Nothing herein shall impose aay liability upon the United States due to the construction, operation, or maintenance of the Project by COD. { B. For the purpose of fulfilling its obligation under this { paragraph, COD shall procure and maintain or require the { general contractor to procure and maintain during the term of this agreement and any extensions thereof, j liability insurance of at least $500,000 per occurrence IYCO42188024 14 I k for bodily injury and property damage and an excess liability policy in the amount of at least $5,000,000. The named insured parties under the policy shall be COD and the United States of America. Each policy or certificate evidencing the insurance shall contain an endorsement which provides that the insurance company will notify the Corps and COD 30 days prior to the effective date of any cancellation or termination of the policy or certificate or any modification of the policy or certificate which adversely affects the interest of i the United States Government in such insurance. The notice shall be sent by registered mail and shall { I Identify this Agreement, the name and address of COD, the policy, and the insured. I i ~ Within 30 days of execution of this agreement oa prior to commencement of work, whichever occurs first, COD shall furnish the Corps with acceptable evidence shoving that the insurance coverage described in this clause has been obtained. VIlI. OFFICIALS NOT TO BENEFIT A. No member of or delegate to U. S. Congress shall be v admitted to any share or part of this Agreement or any benefit that may arise herefrom. I I 8. No official of COD shall receive any benefit that may 1YCO42188024 15 f 4 t 6, t ri t S 4 ~ arise by reason of the execution of this Agreement other than as a consumer of electricity produced by the completed Project. IN. TERM OF AGREEMENT This agreement shall become effective on the day of execution i by the United States and shall terminate upon the final accounting of all costa and payment after completion of construction. S. ASSIGNMENT j i i The benefits and obligations of the Agreement may be 'assigned i by either party. This Agreement shall be binding upon any I assigns or successors of the Corps or any assigns or successors to COD approved by FERC. i XI. NOTICES Any notice, demand or request authorized or required by this J Agreement shall be deemed to have been given, on behalf of I COD, when mailed, postage prepaid, or delivered to the District Engineer, U.S.Army Corps of Engineers, P.O. Box 17300 Fort Worth, Texas 76102-0300, and on behalf of the United f States, when mailed, postage prepaid, or delivered to the Executive Director of Utilities, City of Denton, 215 E. McKinney Street, Denton, Texas 76201 or in case of notice to 1 the FERC Regional Engineer when nailed, 730 Peachtree Street., IYCO42188024 l6 1 ~I 4 .r 1 i f ` 1 NE, Room 800, Atlanta, Georgia 30308. The designation of the Addressee or the address may be changed by notice given in the same manner as provided in this article for other notices. XII. MODIFICATIONS i The provisions of the Agreement may be modified or added by written mutual agreement of the parties, UNITED STATES CITY OF DENTON DEPARTMENT OF THE ARMY !i By By Robert C. Lee Lloyd Harrell i i Brigadier General, U.S.A. + City Manager Division Engineer City of Denton, Texra J Attachments% Exhibit A Exhibit 3 Ii i APPfIM AS TO POW: MY ATMEY, MY OFWON. TEXAS By. . I { i I i I lYC042188024 17 I I l a f EXHIBIT A SCOPE OF WORK 1. Review by the Corp will be directed toward the following concerns: a. General Hydrologic and Hydraulic review including, but not limited to, rated discharge of turbines; daily operation conditions; lake level and tailwater fluctuations; surge pressures and vibration tendencies; powerhouse operatics impacts on flood control procedures; cofferdams; maintaining l low flow requirements during construction; alterations to existing conduits; and multiple release facilities. Additional guidance is provided in MEN-CWE-HD latter dated 17 4 ~ June 1981, subject: Small Hydropower Facilities at Corps of i Engineers Projects Combined with Water Quality and/or Flood Control Release Facilities. b. Structural review including, but not limited to, compliance with Corps of Engineers' structural design criteria; overturning and sliding stability; uplift; design unit stresses and live loads; reinforced concrete design; seismic design (where required); code requirements; and loading 4 combinations. h i r I 1 IYC042188026 1 1 F a r~ 1 . C. Geotechnical review including, but not limited to, exploration and materials testing; cofferdam design; connection to Corps' structures; driving effects of pile driving; emergency measures related to cofferdam overtopping/failure; dewatering; underseepage control and scour protections; cofferdam removal; ~i excavated slope safety factors; excavation; blasting in j vicinity of Corps' structures; breaching Corps' structures; 1 material disposal; foundation preparation, treatment, and construction; backfill operations; instrumentation; piezometers; and surface settlement and horizontal movement; and any other dam safety related items. d. Environmental impacts which could result from construction or continued operation of the hydropower addition. i 3. Items that COD anticipates it will submit for review include, but i are not limited to, the following; a.. utilization of and modification to the existing conduit b. penstock c. plant layout d, outlet/stilling basin e. control of releases during construction f. condt-it routings g. discharge channel h, switchyard I. access to project J. project operations and inspection after co istruction LI/ I Y 4. Discipline bearing on review activities include, but are not limited tu, the following; a. Stuctural Engineers b. Hydraulic Engineers c. Civil Engineers d. Mechanical Engineers 1 e. Electrical Engineers f. Hydrology g. Geology h. Soils I` ff i t I 1 4 l~ 1 lYC042188026 3 i 1 " Y f s Exhibit 8 Parcel A A permanent easement for the purpose of creating a right-of-way to access the Lewisville Dam Hydroelectric Project and its related facilities with right to improve, operate, and maintain the facilities and right-of-way; located in tracts 8113, 8117, and 8118 of the Corps of Engineers Lewisville Dam real estate plot in Denton County. Texas; consisting of 1.32 acresl and described in Attachment 1. Parcel 8 A temporary easement for the purpose of access to construct the Lewisville Dam Hydroelectric Project and its related facilities; located in tracts 8113, 81179 and 8118 of the Corps of Engineers Lewisville Dam real estate plot in Denton County, Texas; consisting of 2.73 acresl and described in Attachment 2. I 1 Parcel C A temporary easement for the purposa of spoil of excess construction I { excavation and temporary stockpiling of construction material, to be located as specified and required by the Corps of Engineers. I I F k k 1 v Attachment Lewisville Dam H droeiectric Pro' eet I Parcel A II A tract consisting of 1.32 acres, located in Denton County, Texas, on the property of the United States Army Corps of Engineers. Beginning at a point on the northern edge of the boundary which is a distance of 255.51 feet along a Line of 5 140 09' 03" E from the centerline of Lewisville D44 at STA 149+1 6.00, the intersection of the dam centerline and the outlet works. Thence, along the northern boundary in succession i 1 N 750 50' 37" E - 153.50 feet S 590 09' 03" E - 84.00 feet Thence, along the eastern boundary in succession S 100 09' 03" E - 170.00 feet S 300 501 57" W - 160.00 feet Thence, along the southern boundary S 750 50' 57" W - 69.26 feet Thence, along the western boundary in succession i i o N 14 09J 03" W - 276.04 feet N 390 33' 31" W - 22.14 feet S 750 50' 57" W - 48.00 feet N 140 09' 03" W - 25.00 feet i S 750 50' 51" W - 40.00 feet N 140 09' 03" W - 21.49 feet I Thence, along the northern i boundary u 150 50' 57" E 67.00 feet to the origination point a f OWN s l a h r a y Llt&.Shment Lewisville Deng droeleccrie Pro'ect Parcel B A tract consisting of 2.73 acres, located in Denton County, Texas, on the property of the United States Army Corps of Engineers. Beginning at a point on the northern edge of :he boundary which is a distance of 247.51 feet along a Line of s 140 09 03" E from the centerline of Lewisville Dam at STA 149+16.000 the intersec:ion of the dam centerline and the outlet works. Thence, along the northern boundary in succession ' N 750 50, 57" E - 145.50 feet S 590 09' 03" E - 39.60 feet j N 750 30' 57" E - 300.00 feet j Them, along the eastern boundary in succession II S 140 09' 03" E - 155.00 feet I I j S 750 50' 57" W - 220.00 feet 9 II° 09' 03" E - 60.00 feet S 300 50' 57" W - 68.00 feet l S 140 09' 03" E - 59.44 feet Thence, along the southern boundary i S 750 SO' S7" W - 20:.42 feet Thence, along the western boundary in succession N 140 09' 03" W - 296.04 feet 9 750 50' $7" W - 27.00 feet N 140 09' 03" W - 23,00 feet S 150 $0' 57" W - 40.00 feet N 140 09' 03" w - 29.49 feet Thence, rlong the northern boundary J I k 750 50' 37" E - 67,00 feet to the origination point I I I ri 1 88 Minutes of May 11, 1988 (cont'd) shall not exceed $346,000 which includes the maximum amount of $6,000 for the feasibility review and $37,SOO for the preparation of turbine-generator specifications. LaForte questioned the high cost a! updating a report originally prepared by Black 6 Veatch when a great deal of, the Information required for the update is already in their possession. Tullos explained that this type of Installation requires several disciplines of engineering expertise to create design rriteria before you can even begin to write the specifications. The original feasibility study included such parameters as current gas costs, labor, IMPA, future generation requirements, cost and escalation of money, and many other items of a nature such that it is now outdated, and will need to be re-evaluated using current economic and cost information. After lengthy discussion, Thompson nrade a motion to recommend to Council approval of subject request for an agreement for Design 1 Engineering Services with black 8 Veatch on Ray Roberts Hydra Feasibility Review ($6,010) and Turbine/Gen/Elec Equ!pment (317,500). Second by Chew, All ayes, no nays, motion carried. e, CONSIDER GUIDELINES FOR INSTALLATION OF COMMUNICATION LINES FOR ZG3'IUMt S U ELCTN~C t;tSiEM. lullos reviewed this Item Indiating that a contract similar to the security light tontract currently in use by the Utility Is being prepared for use in this effort. Tullos explained the cost of each installation will be considered based on each individual project. LaForte stated he is opposed to this concept if It is going to become a major business for the Utility. As a small service for anotf.er g9overnment entity such a plan might be acceptable. Nelson lndIcated he would expect these projects to be cost limiting. LaForte requested an estimate of how many customers would be likely to request such a service. Nelson stated there are very few of those customers with more than one office in close proximity to each other. After further discussion by the Board, LaForte made a motion to approve the concept of such communication activities with a capital psybacT o -Tive years, but discouraging the Utility from becoming involved In a major way In this type of activity. Second b; Ch-!w. All ayes, no nayes, motion a rriel. Thompson re-stateO Is concern regarding legal ramifications particularly regarding computers. Tullos stated he would look Into this and report back. CONSIDER SUPPORT AGREEMENT WITH SITE ACCESS AND ACTIVITIES AGREEMENT" TiETFER-TPF-LI1 V OF DENIOtR CORPS CU TIM fGR7E4T"ILLE FYTKIil; MO FKWEL1. Nelson stated that in order to do those things that are required on the Like Lewisville Hydroelectric project, this agreement is necessary, Tullos explained we have to put the money up front in order to obtain Corpse review. The Corps' has the tight to oversee the work very closely. They wl11 have to review plans from black and Veatch to be sure that all the work if meeting their criteria. The Legal Department has reviewed the document { and finds no problems with it. Thompson made a notion to a prove the Support Agreement and Activities Agreement between the City of Denton and the Corps of Engineers for Lewisville Hydroelectric project. Second by Frady. All ayes, no nays, action carried. 6. REVIEW UTILITY DEPARTMENT PROPOSED 1989 OPERATING BUDGET. The draft 1989 Operating Budget was introduced by Nelson who discussed once again the manpower requirements for the Utility. LaForte indicated he would like to see the position for safety I I I I r j l i i 11 January 17, 1989 CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager SUBJ: CONSIDER SUPPLEMENTAL AGREEMENT NO. 2 TO THE UNTREATED WATER CONTRACT BETWEEN THE CITIES OF DALLAS AND DENTON RELATING TO THE CITY OF DENTON'S INSTALLATION OF HYDROELECTRIC FACILITIES ON RAY ROBEKTS. RECOMMENDATION: The Staff recommends approval of subject contract. SUMMARY/BACKGROUND { Supplemental Agreement Na. 2 to the Untreated Water Contract between the Cities of Dallas and Denton establishes Denton's and Dallas' respective positions and rights regarding the hydroelectric turbine on Lake Ray Roberts. I i The essence of this contract is that Dallas does not object to j Denton's installation of a hydroelectric turbine generator on Lake Ray Roberts. This agreement establishes that all releases for Dallas' requirements from Lake Ray Roberts will continue to be controlled by Dallas for the purpose of providing water to Dallas' downstream reservoirswater plants. This, of course, is the some position that the City of Denton has always maintained in all of the documentation relating to our FERC license. fiallas also agrees to obtain a non-consumptive water right permit from the Texas Water Commission for the hydroelectric turbine. This non-consumptive water right will allow Denton to uie the permit for hydroelectric generation. Denton agrees to pay the costs of securing this permit and any periodic permit fees that may be required. Denton will also have such a permit for Denton's share of the water releases, Denton also agrees to support Dallas in the event any action is initiated by the FERC or others who may attempt to impose criteria which would cause water flows through the turbine which may result in the loss of water from the reservoir systems. t Denton will retain ownership of the hydroelectric plant and will 1 not sell or sublease without Dallas' agreement, It is anticipated that this agreement will be submitted to the Dallas City Council for their consideration on January 25, 1989. I 11 i r-! I l CC Meeting Page 2 i PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: City of Eentoti, Denton Municipal Utilities, Dallas, Denton, FERC, Texas Wat%r Commission, Legal Department. FISCAL IMPACT: See summary above. ` Respecyrully submft,ted, oy erre City Manager Prepared/A proved by: -E.- a son, P.E. Executive Director of Utilities II j I Exhibit I Proposed Supplemental Agreement 12 II Ordinance k I I I ' i L II i i i f 6182U:5-6 I I J I i i 2626L NO. AN ORDINANCE APPROVING SUPPLEMENTAL AGREEMENT NO. 2 BETWEEN THE CITIES OF DALLAS AND DENTON; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Council hereby approves and authors ttFe Mayor to execute Supplemental Agreement No. 2 between the Cities of Dallas and Denton regarding the City of Denton's proposed Ray Roberts Hydroelectric Turbine, under the terms and conditions contained in said supplemental agreement, a ` copy of which is attached and made a part hereof. 'If SECTION II. That this ordinance shall become effective ieme ace y upon its passage and approval. PASSED AND APPROVED this the day of , 1989. i 4 ATTEST: JFNNIFER WALTERSO CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: i s I I i ~I 4 _ fA a 414 ben 4130 DLS WTR UTL 17 lor SUPPLEMENTAL AGREEMENT NO, 2 r TO UNTREATED WATER CONTRACT BETWEEN THE CITIES OF DALLAS AND DENTON 1. Exhibit F to the Original Contract, dated August 7, 1985, 1s amended to add the following Paragraph 28: Regarding the use of the CITY OF DALLAS' RAY ROBERTS LAKE OUTLET CONDUIT and WATER FLOWS and the CITY OF DENTON'S Proposed RAY RO8£n7S HYDROELECTRIC TURBINE, the Cities of Dallas and Denton agree to add the following operational conditions; A. Dallas will not object to Denton's installation of a hydroelectric turbtna Venerator on Ray Roberts L.ke Outlet conduits for operation in 1991. 0. Dallas will continue to have complete control over determining I Oallas' water releases from Ray Roberts Lai.e through Denton's hydroelectric turbine. Denton will continue to Lava complete control over determining Denton's water releases from Ray Roberts Lake through subject hydroelectric turbine, Such water releases shall be for the purpose of providing a supply of water to the downstream Lewisville Lake water supply reservoir and the water supply for water 1 plants dependent on the water therein. The generation of electricity by the hydroelectric unit will be incidental to the water supply releases. The conservation of water for the municipal water system's use is the primary and paramount purpose of water releases; however, I' Dallas and Denton will take into consideration the needs of the 1 hydroelectric plant where feasible, ~ I 1 1 I i s air cre 4e30 ous ura uTL 03 1) I C, Dallas and Centon will each obtain a separate "non-consumptive ►ater right" from the Tl+xas Water Commission for the hydroelectric turbine. Dallas and Denton will have permitted rights for their i respective releases, but Dallas will allow Denton's use of its permit for hydroelectric generation as re4uired by Denton's FERC permit and as herein agreed. Any costs incurred by Dallas to secure such permits and any annual or other periodic permit fees shall he paid by Denton. Any such permitted right shall be subject to Dallas' and Denton's right to use water for municipal purposes, in the event Dallas' need for municipal purpose requires it, Dallas may discontinue discharge of its water releases which may cause Denton to cease hydroelectric operations. I 4 D. Denton shalt work with and support Dallas, If any actions are initiated by the Federal Energy Regulatory Commission or its successor agency and/or other bodies that may attempt to impose jurisdiction or any criteria on Denton or Dallas, resulting from ~ Denton's hydroelectric project, which would have the effect of Diminishing Dallas' rAd/or Denton's water rights or safe yields of j Ray Roberts Lake, E. Ownership of the hydroelectric plant will stay with the City of Denton, and Denton will not sell or sublease to any other organi2ation without the prior agreement of Dallas. J 2, The above operational conditions are agreed to pursuant to Paragraph 2 of the Cxhibit F of the Original Contract, 3, All other terms, provisions, conditions and obligations of the original { Contract between Dallas and Denton, dated August 70 19851 shall remain in full force and effect, and said original contract, as same may have been f , previously amended, and this Supplemental Agreement No. 2 shall be f construed together as a single contractual agreement. i i l E 2l1 670 4030 DLS WTR USL 01 ' PASSED AND APPROVED THIS day of _ , 1989. Approved as to Form: CITY OF DALLAS 1 ANALESLIE MUNCY, City Attorney RICHARD KNIGHT, JR., City Manager By By CITY OF DENTON I ATTESTi r i By By- CITY SECRETARY MAYOR I i APPROVED AS Oft i Y By By CITY ATTORNEY I r' i 1 r r~ 1 EXHIBIT F / OPERATIONAL AGREEMENT BETWEEN DALLAS AND DENTON FOR LEWISVILLE LAKE AND RAY ROBERTS LAKE 1 1. Purpose The purpose of this agreement is to provide a basis for the joint operation by Dallas and Denton of Lewisville Lake and Ray Roberts Lake. 2, Water Supply Releases i Dallas and Denton agree that Dallas shall act as spokesman for Dallas and Centon to the Corps of Engineers, in behalf of both Dallas and Denton, in requesting all water supply releases from Ray r4obact3 Lake and Lewisville Lake. Ten days after written notice to Dallas and the Corps of Engineers, Denton may assume the role of spokesman for Denton's share of water supply releases and management of its storage in Ray Roberts and Lewisville Lake. Releases made from Ray Roberts Lake in accordance with the minimum release schedule in the Memorandum of Agreement between a ! Dallas, Denton and the United States of America shall be shared ' proportionately between Dallas (74%) and Denton (26%) J When Dallas is operating the reservoir and acting as spokesman to the Corps of Engineers in behalf of Denton, Denton shall advise Dallas weekly of water releases to be made in Denton's behalf. J Dallas recognizes that Denton plans to install hydroelectric generating units on Lewisville Lake and Ray Roberts Lake and J agrees to give consideration in making water releases from the reservoirs for beneficial use of the hydroelectric units, Dallas and Denton shall formulate conditions for water releases from the reservoirs that accommodate Denton's need for water for hydroelectric generation and conditions pertaining to compensation for any value realized in-utilizing water flows from Lewisville and Ray Roberts Lakes for the purpose of I/ generating electric power by a separate document. However, primary consideration in operating the reservoirs and scheduling i water releases from the reservoirs shall be maximization of dependable yield, conservation of water and efficient operation of the reservoirs. l i 4 i r-~ V _ 3. Withd ►s Denton agrees to withdraw from Lewisville Lake on an annual average basis, an amount at least equal to Denton's dependable yield share of the existing Lewisville Lake plus l8% of Denton's dependable yield share of the Ray Roberts Incremental Project, providing Denton's requirements for water are sufficient to require such withdrawals. Dallas and Denton agree that they shall operate Lewisville Lake and Ray Roberts Laxe as a reservoir system and, during the filling period of the Ray, shall Roberts be Incremental to Project, withdrawalsiDallasa would have ismade tit _ the Ray Roberts project had not been built. The Dallas schedule for he Dallas withdrawali from existing Reservoir operations LGuidelines LakDeuring the (filling t period of the Ray Roberts Incremental Project, Dallas' maximum release will be based on what the level of Lewisville Lake would not been built. This Joel have been if bRoberts Lake y hydrologic h study. will be determined After the filling period of the Ray Roberts Incremental Project, Dallas shall be allowed to overdraft Lewisville Lake and Ray Roberts Lake. Dallas agrees that Lewisville Lake and Ray Roberts Lake shalt be operated such that Denton will be able to withdraw its share of the dependable yield of Lewisville Lake and Ray Roberts Lake and its water demand from Dallas, estabished according to provision 5.0, throughout a Critical Drought period. 4 , water uallty Each city agrees to strive to prevent a degtadation in water Lewisville Lake and Ray Roberts Lake resulting from quality uan city's actions. Dallas and Denton agree that they will not divert water from other sources into Lewisville Lake or Ray Roberts unless Dallas agand o shall mutually be agree proposed diversion. Such 5. Joint Operating Committee A joint operatioq committee consisting of representatives from Dallas, Denton and Lewisville shall be organized for the purpose of periodically meeting to discuss and, if necessary, formulate conditions of operation for the Lewisville and Ray Roberts f reservoirs. F - 2 J Meetings shall normally be convened semi-annually during the months of March and September. Denton shall be represented by its City Manager and/or Director of Utilities. Dallas shall be represented by its Director of water Utilities or his designated representative. Lewisville shall be represented by its City Manager and/or. superintendent of water Production and wastewater. , 6. APProved Changes i Changes in this operational Agreement may be made by mutual agreement in writing of Dallas and Denton at any time. I i I I 1 E I ' + 1 1 1 1 f[ ' F - 3 F 8868X r SUPPLEMENTAL AGAEEMENT 40. 1 i TO UNTREATED WATER CONTRACT BETWEEN THE CITIES OF DALLAS AND DENTON 1. Exhibit F to the original Contract, dated August 7, 19859 is amended to add the following Paragraph 2A: Regarding the use of the CITY OF DALLAS' LEWISVILLE LAKE OUTLET CONDUIT AND WATER FLOWS and the CITY OF DENTON'S Proposed LEWISVILLE HYDROELECTRIC TURBINE, the Cities of Dallas and Denton agree to add the ollowing operational conditions: --1 A. Dallas will not exercise its right to transport water through the proposed pipeline from Lewisville lake to Elm Fork Water Treatment Plant until the year 2005. 9. Dallas will not object to Demon's installation of a hydroelectric turbine generator on Dallas' Lewisville Lake Outlet conduits for operation in 1990. I C. Dallas will continue to have complete and total control over determining the water releases from Lewisville lake Including water releases passing through Demon's hydroelectric turbine, Such water releases shall be for the purpose of providing a supply of water to Dallas' water plants. The generation of electricity by the ' ~J hydroelectric unit will be incidental to the water supply releases. The conservation of water for the municipal water system s use is the I primary and paramount purpose of water releases; however, Dallas will tare into consideration the needs of the hydroelectric plant where feasible. 0. Dallas will obtain a 'non-consumptive water right' from thi, Texas Water Comwifsion for the hydroelectric turbine. My permitted right will be the possession of Dallas but Dallas will allow Denton', use of such permits for hydroelectric generation use as required by Demon's FERC perriit and as herein agreed. Any costs incurred by Pallas to secure such permits and any annual or other periodic permit fees shall be paid by Denton. Any such permittad right snail be subject to Dallas' right to use water for municipal purposes; in the event Dallas' need for nwnicippeal purposes requires it, Dallas may require Denton to cease hydralectric operations. E. Denton shall work with and support Dallasg if any actions are initiated by the Federal Energy Regulatory Comissioe or its successor agency i and/or other bodies that say attempt to impose jurisdiction or any ' criteria on Denton or Dallas, resulting from Denton's hydroelectric project, which would have the effect of diminishing Dallas' and/or Denton's water rights or safe yields of Lewisville lake or upstream reservoirs. I ~ l f F. In the interim, Dallas will construct a raw water intake and pumping facility for the Elm Fork Water Treatment Plant in lieu of constructing the pipeline. However, additional energy costs will be +•aquired for Dallas to use the intake facility instead of the pipeline, and Denton will compensate Dallas for this energy in the following amounts: From initial opperation to December 31, 1995 1,250,000 KWH/yr From January O1, 19960 to December 31, 2000 2,000,000 KMH/yr From January 01, 2001, to Installatioi of 2,500,000 KW /yr Pipeline Denton's obligation will continue until the delayed pipeline is placed in operation or Denton decommissions Via hydroelectric unit, whichever occurs first, at which time Denton will no longer be required to p compensate Dallas. Dallas will be responsible for all other costs _ related to the intake structure, The compensation for the above amounts of electricity shall be based on the average cost per KITH that M Dallas pays for electrical power at the Elm Fork pump station. G. Ownership of the hydroelectric plant will stay with the City of Denton and Denton will not sell or sublease to any other organization without the prior agreement of Dallas. H, Dallas may, at its sole option, construct and/or connect the pipeline at any time during or after year 20050 providing Dellis notifies Denton iI of its intent to construct and/or connect the pipeline at last one year in advance. I. Denton agrees to provide at no cost to Dallas a blind flange connection It least a ual In size to the existing Dallas connection upstream from ~ the hydroelectric unit for Dallas to connect a pipeline for Dallas' future use. Denton shall obtain Dallas' approval of the design for the blind flange connection before it is constructed. Denton will transfer title to the piping from Dallas' Lewisville Lake Outlet conduit to the blind flange connection, including the blind flange •connection, to Dallas whenever Dallas connects the pipeline to the blind flange connection. 2. The above operational conditions are agreed to pursuant to Paragraph 2 of Exhibit F of the original Contract. 3. All other terms, provisions, conditions and obligations of the original Contract between Dallas and Denton, dated August 1, 1965, shalt remain in full force and effect, and said original Contract, as sawn mw have been previously amendedi and this Supplemental Agreement Ho, 1 shall be construed together as a single contractual agreement. r 1r II1`r 'r 2 f ~ y r PASSED AND APPROVED THIS_13144-' day of APPROVED AS TO FORM; CITY OF DALLAS ANALESLIE MUNCY, City Attorney RICHARD KNIGHT, JR „ City Manager M f By This an city SuDmi i~ city By ss s n gey ana r CITY OF DENTON r~ ATTEST: of (Im W1,44 By C i 17 e ry 1 APPROVED AS TO FORM: Ay %9•~,r1 a N J Cory rney I i i i , ` 'r i 1 i ' I 1 l JI I i i I it 1 J f Y a ~ January 17, 198914- TO: CITY COUNCIL AGENDA 1TEM MAYOR AND MEMBERS OF 11I: CITY COUNCIL FRGM: Lloyd Harrell, City Manager RE: CONSIDER RESOLUTION SUPPORTING LEGISLATION TO CREATE A REGIONAL WATER AND WASTEWATER SYSTEM FOR DENTON COUNTY AND PROVIDING FOR AN EFFEC'T'IVE DATE. RECOMMFNDATIONS: The Staff recommends approval of the resolution in support of legislation creating a regional water district in the Denton Co,jnty area. SUMMARY: Attached is the resolution regarding Denton's support of the legislation creating a regional water system in Denton County. As per direction from the Council, Denton's support of this resolution is contingent upon the Steering Committee effecting certain changes that the Council expressed were "essential" and also a list of other items that the Council expressed were "strongly desired". The Council had requested that Denton's Bond Council, Paul Horton, review the draft of the latest legislation and respond regarding his visits with the Denton County Steering Committees Legal Counsel, and also respond to the advisability of Denton 's j support or membership in such a regional water Jistrict. Mr. Horton's response is also attached. The Denton County Steering Committee will be meeting on Wednesday, January 18, 1989 to consider final issues regarding the legislatin:i. Respec ully submitted, t Lloj~A arse , Manager Prepared/Approved by, rl - R. L. Nelson, Executive DI-rector Department of Utilities Exhibit I Resolution in Support of Legislation 11 Paul Horton Is letter of January 11, 1989 6279U:3 { i 1r I 4 LAIN CrFiCES MCCALL, PARKHURST 6 HORTON MO MT N MGCAII 717 NORTH HARWOOD JOHN 0 wCCALL PAUL S "ORTON IiI i R E, CR M TAX? NINTH FLOOR R wnuRO a oeRaAMi URft 'CHARO C RORTCa 0 CMARItS COlO.SH DALLAS, TEXAS 76201.8567 '••oR'R'a THOMAS L RO[CMARtiRn CLARCNC[ C CRCwC A tN NtTM C I'll TR.V.On[ I'd RJC.CSOC 0000 poll M .A MARTIN 19,2CO. CA F. RSS.0736 ALJOAHN N M * M RAIN RATNOR R, JR SSSC ONC AMERICAN CCN7p JOHN R PUB017 vSOTTOM AUSTIN, 7EAAS 7470,•3214 JVIRry A l[USCMCL IC 12..0.2 SN 4743101 1 TMowA,A ERUROLON January 11, 1989 L L 60920LARA. uI 402 CHIC RIVtRWALA RLACC MAROLD t RLANAOAN SAN ANTONIO, TCUS fa[osa[w CANNY S OVLVCa TC 12.MOV2 Sit 2242-00 ALRRLO O JOHNSON •Vt[+f LR IN Ntw 'O RA orl• L Mr. R. E. Nelson Executive Director, Department of Utilities Municipal Building 215 E. McKinney Straet Denton, Texas 76201 Re: Upper Trinity Regional Water District ` Dear Bob: At the request of Lloyd Harrell, this letter constitutes a follow-up to my letter of December 28, 1988, concerning the captioned District. I had mentioned two technical points which I thought should be addressed in the proposed bill, one con- cerning the finding of benefits for undefined areas that might r be included in the boundaries of the proposed District, and the f other concerning the conflict between the definition of "bonds" and the possible use of Article 717q. My other technical comments concerned the possible opposition to the bill that might result because of the broad powers of the proposed t District with respect tc the property and powers of other political subdivisions, and with respect to the creation of subdistricts. I talked to Bob Dransfield about these points and he indicated that he would take care of the matteri con- cerning boundaries and benefits as well as the use of Article 7179. He acknowledged the other points and indicated that he would consult with his client about them. I do not know the result of such consultation, if any, but these points related only to the matter of possible opposition and not legality. I` I have reviewed the January 3, 1989, memorandum from Lloyd If Harrell to the Mayor and Members of the City Council relating j j to the proposed District. In my opinion the description of the E 1 four basic alternatives available to Denton with respect to regional agencies is accurate, with the additional comment that under alternative 21 such a Regional Agency would not have to be a non-profit corporation, but could be a separate political I I I subdivision created by the Legislature consisting of Denton alone or Denton and other specified entities. Such an alterna- tive could be similar in general concept to alternative 3 (the proposed District) but with a different design directed towards Denton's specific problems. The choice of any of these alter- natives should be based on the City Council's determination of the CityOs best interests, and is basically a matter of policy rather than legality, as indicated in my letter of December 28. if you need any additional comments from me concerning these matters, please let me know. I plan to attend the Council Meeting on January 17, 1989, and will try to assist in any way practicable. sincerely yours, Paul S. Horton cc: Lloyd V. Harrell City Manager i c i V 4 l~ 2624L RESOLUTION NO. A RESOLUTION SUPPORTING LEGISLATION TO CREATE AN UPPER TRINITY REGIONAL WATER DISTRICT FOR DENTON COUNTY, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Denton County region has experienced a consider- eble increase in population in recent years and is expected to continue to grow; and WHEREAS, an adequate and safe supply of drinking water is a fundamental necessity for life and for the sound economic deve- lopment of the region; and WHEREAS, the collection and treatment of domestic and com- mercial waste are vital public services that need to be coordinated with the water system; and j WHEREAS, more than thirty (30) cities, towns, and water utilities in Denton County conducted a study and prepared a plan to address water and wastewater needs on a cooperative basis; and WHEREAS, the City of Denton participated in the Water Study and contributed to the cost of developing a Plaster Plan; and WHEREAS, the Texas Water Development Board awarded a matching grant to conduct the Regional Study; and WHEREAS, the Texas Water Development Board and the Water Study Committee have approved the Report and Master Plan; and WHEREAS, there is an urgent need to implement the recommenda- tions of the study to organize a regional utility system to protect the environment and to provide the most efficient utility and solid waste disposal services; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton, Texas, supports the pro- posed legislation (the "Act") creating the Upper Trinity Regional Water District, a copy of which is attached hereto as Exhibit "A", subject to following conditions and recommendations: ' A. Conditions: That the Act be amended as follows: (1) To provide that in any matter requiring the weighted votes of participating members, the participating members shall have weighted votes as follows: i (a) One vote for each participating member; (b) One additional vote for any participating member having a population greater than 50,000 persons, as determined by the most recent U.S. Census; and l " s 4 i f q i (c) Each participating member shall receive one addi- tional vote for each four million gallons per day (4 m.g.d.), or increment thereof, of combined plant capacity, which is in excess of an initial 4 m.g.d,, for water treatment, wastewater treatment, and for raw water purchased, but not treated by a district plant. (2) To provide that Board :embers shall not receive compensation. B. Recommendations. That it +.s strongly recommended that the f propose3 tTct_"5_eamended as follows: 11 i (1) To remove the prohibition of elected officials being appointed to the Board. (2) To provide that the one "at large" member of the Board be appointed by the Board, the member to be a resident of the District and the service area of a water or wastewater utility system not included within the territorial limits of an entity that would be qualified to serve on the Board. (3) Establish misiimum qualifications for Board members. SECTION II. That the Texas Legislature give early considera- tion and -approval of the legislation establishing the Upper Trinity Regional Water District. PASSED AND APPROVED this the day of , 1989. R.AY S'1'EPHENS,$ MAYOR I ATTEST: 1 I 7ENNI k- h WALT , CITY SECKETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY O~ BY: 5 ' Y.Y.~aJll EXHIBIT "A" Draft of 1/6/69 includes City comments to 1/6/99) Dy .D. A BILL TO BE ENTITLED AN ACT relating to the creation, administration, and powers, including the power of eminent domain subject to limitations, and to the duties, operations, and financing of the Upper Trinity Regional water District, and to the creation therein of subdistrict% with the power to levy and collect ad valorem tares within the subdlstrictsi and containing other matters related thereto, r St IT ENACTED BY THE LEGISLATURE Of THE STATE Of Tt%AS: SECTION 1. purpos It is the purpose and inteat of • this act to establish a mechanism that can provide on an orderly basis for the water, wastewater, solid waste, and liquid watts needs of Denton County and the entities that may be served by the authority herein created, To accomplish this purpose, a conservation district, without taming power, is i created, with the power included to create stbdlstricts having the power of taxation, subject to limitations, all for the 't purpose of providing for such services on coordinated basic that is consistent with the reglonalisatira objectives to be satisfied by the creation of the authority. SECTION 2, Definitions. in this act: (a) 'district' means Upper Trinity Regional Water District crated in section 1 of this act and any other public body at soy time succeeding to the property, principal rights, powers, and obligations of said Upper Trinity Regional Water District. (b) 'basic service area' scans the geographic area contained within the corporate limits of all participating members, all contract members, and all customers and such areas as are served by mild members and customers (c) %ward" means the governing board of directors of j the district. i; p* i' (d) %c,nttact member' or 'contracting member' means one or more, as the case may be. of the governmental entities which provides retail utility service within its boundaries, that U\~ ' contract with the district within two (1) years tram the affscaltt date of this act to preserve the opt ton to become a pa tticipant within 10 years from the effective date of this act and agree to pay an annual pro rata share of thaAadministrative and planning costs of the dietrlct which are unrelated to !ftal projects to be financed from time to time by the districtibsving, colleottvely. at, to mat- seventy-five percent, of the population teptesented by all the contract member-si prcvlded, however, that such share shall ewer exceed or any contract member fifty cents per capita unless otherwise agreed j to by at least seventy-five percent ofAthe contract members. (a) -county' means Denton County, Texas. r•.) 'customer' means any wholesale uses of the water or wastewater services provided by the district which user 1 provides retail utility estwice within the boundaries of maid f user. (q) 'partletpent' or 'participating member' means one or E mote, as the case may be. of the governmental entities which provides retail utility service within its boundaries that contract with the district for the construction of and payment foe the motor and/Or wastewater projects to be finsneed from time to tive ay the district, (h) 'sctviee saes' Omens that geoQtophie ores contained ',within the boundaries of the district. (i) 'state' means the State of Texae. (j) 'subdistrict' peons one or mots of the subdistticts authorised to be created under part it of this Act. SLCTtON 0. Legislative _ rindines. (a) tt is heteby a found by the legislature that the eteotton and establishment of the district and the caution and establishment of subdistricts i I I Y Y wtitbia the district its essential to the ACCOmplirhmen*_ cf the putposes of Article XV1, Section $4, of the Texas Constitution, (b) It is hereby found by the legislature that All of the land and othet property included in the bouniities of the district and in the boundaries of a subdistrict will be bensfltted by the improvements, works, and pro)e6ts that are to be provided by the district and by subdistricts pursuant to the powers conferred on the district and aubdiatricts by this Act, and that the district is created to serve a public use and benefit and any subdistrict created will serve a public use and will be for a public purpose. (c► The legislature specifically finds and declares that the requirements of Article XV1, Section !^;d) and Section 59(e), of the 'texas Constitution, to the extent applicable, have been met and accomplished in due couree, time, and order j and that all notius required to b• given relsling to this art have been given, that all af'provais required to be obtained pursuant thereto hays been obtained, and that the legislature has the authority and power to enact this set. PART I THE DISTRICT SECTION 4. creation, (a) A conservation and reclamation district having the bouniarlee prescribed herein is I hereby crested and shall be known as the Upper Trinity Regional Crater District. (b) The district is a conservation end reclamation district ulder Artiefe XVI, Section S9 of the Texas Constitution, and is a governmental agency, body corporate and politic, and a political subdivision of the State. (c) The boundaries of the district are coterminous with f the duly established and existing boundaries Of the county plus the entire incorporated limits of any contract member of + participating member, a portion Of whose incorporated limits is i I F j 1 L 1 W L& lly within the Corporate limits of the county. r (d) An election confirming the ctration of the district is not required. SECTION S. Management of District. The district shall be governed by a board of directors Consisting of persons who are residents of the district; provided, however, that no member of the board of directors shall be an elected official of any governmental entity that has the authority to appoint a member of the board. The terms of office shall be four (a) years. Members of the board shall be appointed by the governing bodies of the participants and the contract members in the manner set forth herein. The members of the board are subject to removal with or without cause by duly adopted action of the governing body of the entity that originally appointed such member. The board shall have complete authority over the management and affairs of the district under this act. (b) The initial board shall consist of the persons who served as the initial board of directors of the Upper Trinity Municipal Water Authority, Inc., a nonprofit corporation organised under the laws of the State of Tease and those persons who are appointed by those entities that become participating members or contract members within two years of the effective date of this act. Each such participating member I j or contract msmke: shall appoint one member to the board and the county shall appoint one member to the boards provided, however, that the county may appoint one additional member to { the board it the b~srd determines that such appointment is in the beat interests of the district. Those entities that contract with the district after two years from the effective date of this act shall be entitled to representation on the board only pursuant to the rules and procedures established by the board for the admission of board members as such rules and procedures may from time to time be amended. f arms i i I F rt I (c) Members of the board who are appointed by the participating members shall be entitled to vote on all matters before the board. Members of the board who are aPPotntad by contract members which are not participating members shall be entitled to vote on all matters before the board except those matters that require a weighted vote. The board Shall establish rules for the implementation of a system of weighted votes concerning authorisation of and financial commitments for capital protects which system shall be determined according to each entity's participation in service and in protects of the district. r~ (d) except as provided herein. the initial board shall serve staggered terms in accordance with the procedures to be { adopted by the initial board, provided that no initial board member shall be appointed [cc a term in excess of four years. Thareafter each board member shalt be appointed to a four year term. Members of the board may servo consecutive !arms. The members of the board that served on the board of directors of the Upper Trinity Municipal Water Authority, Inc. shall have rights and privileges as members of the board appointed by ,actieipating membecai provided, however, that such members shall not be entitled to a weighted vote on any matter coming before the board and shell be entitled to vote as a participating member without the tight to a weighted vote. The boardmembers that served on the board of directors of the Upper Trinity Municipal Water Authority, laic. shall serve as initist tars of two yeace from the effective date of this act. Thereafter, such persons are eligible to be appointed to the board by a contract member or a participating member. (e) Members of the board shell qualify to serve by taking the oath of office and furnishing evidence of their i qualifications to serve on the board consistent with the requirements of this act Prior to assuming the duties of a ee,ea 1 r ,s r I baasd nen.ter. ?embers of the board may be reimbursed far i actual reasonable expenses necessarily incurred on behalf of the district or in the discharge of their official duties. (f) The bcatd may establish a category of ex-officio membership to t"e board and may provide for the duties and responsibilities of the es-officio members in bylaws, rules, or regulations to be adopted by the board. I SECTION 6. Board Procedures. (a) The board shall prepare and adopt the bylaws of the district, and shall hold I such regular, special, or emergency meetings at such times and ` an Much days or dates as are specified therein. I~r \ (b) A majority of the members of the board constitutes a l ~J I Ir quorum for the transaction of business of the district, and + approval of at least a majority of the members of the board r present at a meeting is necessary for approval of ny matter coming before the board, except where a weight j vote is required in accordance with the rules of the board in which case a majority of the weighted vote of all board members 1 eligible to vote is necessity for approval of any such matter coming before the board. (c) The board shall provide in its bylaws for the method of execution for all contracts, the signing of checks and the handling of any other aftters approved by the board. The board shall annually racogaise and elect new officers. (d) The officers of the board shell consist it the + president, one or more vice presidents,* a secretary, and a f1 treasurer. The board shall elect a president and any vice 1 'I presideat from its members. The board may appoint s secretary, one or more assistant secretaries, a treasurer, an assistant treasurer, and such other officers as in the judgment of the board are necessary, provided that such officers are not required to be members of the board, The president shall be the chief executive officer of the district and shall preside aaau 1 J J ever the reatirgs of the board. Any vice president shall perform all duties and bxercise all powers conferred on the president when the president is absent or fails, refuses, or is unable to act. The secretary of the board or one of the assistant secretaries shall be responsible for keeping the minutes of the meetings of the board and all official records { of the board and may certify as to the accuracy or authenticity of any actions, proceedings, minutes, of records of the board ar of the-district. The duties of the other officers may be provided In the bylaws of the district, (e) The regular meeting place of the board shall be at such place as may be designated in the bylaws. (f) The board may appoint and employ all persons, firms, corporations, partnerships, and other entities deemed necessary by the board to conduct the affairs of the district, including but not limited to, engineers, attorneys, financial advisors, accountants, general manager, and other employees or consultants. (g) The board shall establish a customer advisory council composed of one representative from each customer receiving service from the district. The members c: the Ir I customer advisory council shell be empowered to act as provided in the bylaws or other rules and regulations of the district, 'I but such customer advisory council shell have no voting poser on matters coming before the board. (h) The board shall adopt a most of the district and may adopt bylaws to govern the matters deemed appropriate by the board provided such bylaws are consistent with this act and the laws of the State of Texas. ` (i) The members of the board and all other officers of 4 the district are subject to the conflict of interest provisions specified in the general laws of the State of Texas applicable 4 arise -7- I i J M 3 ~f to public cf:icials and the actions of such persons shall to Ill governed by such provisions. SZ:'n ION 7. General Powers and_ Outles. (a) Subject to the specific provisions of this act, the district and its board of directors have the tights, powers, privileges, authority and functions granted, conferred, contemplated, and described in Article RVI, Section 59, of the Texas Constitutions, including the rights, powers, Privileges, authority and functions conferred by the gc:eral laws of she state applicable to municipal utility districts operating under the applicable provisions of the Texas Water Code, together with the additional rights, powers, privileges, authority and functions enumerated, described, expressed or implied by this act, l~ (b) The district shall not have the power to levy or collect ad valorem taxes. (c) If any genetal law is in conflict or inconsistent with this get, this act shall prevail. SECTION SuecSfic porters and lh:lies ot~ lst ict,, (a) The district has the additional tights, Powys, ptIvA loges, authorities and !unctions provided by this Section, (b) The district may plan, lay out, purchase, construct, 1 acquire, own, operate, maintain, repair and improve, inside or i, outside its boundaries, any works, improvements, facilities, plants, equipment and appliances, including any administrative properties and facilities, any permits, franchise, licenses or contract or property rights, and any levees, dray's, Waterways, lakes, reNrvolra, channels, conduits, sewars, dams, stornwater detention facilities or other similar facilities and i improvements, whether for municipal, industrial, agriculturai, flood control, or related purposes, that are necessary, helpful dr incidental to the aseteise of any right, Powt, privilege, authority or function provided by this act, including the supplying of water for municipal, domestie, and industrial $$ISO _e- i »1 ai i f ti r uses. and ail other beneficial uses 0T controls; the t ~ collection, treatment, processing, dispose; at, and controlling of all domestic or industrial wastes whether in fluid, solid, ! or composite state; the gothetinq, conducting, diverting, controlling and treating of local storm eater or local harmful excesses within the boundaries of the district, irrigation, and the altering of land elevations within the boundaries of the district where it is needed. (c) The district may acquire, by purchase or by exercise of the power of eminent domain, which power is hereby granted subject to the limitations imposed thereon by this subsection, any land, easements, rights-of-way or other propetty or improvements within or without the boundaries of the district (including land above the probable high water line around any i re.lrvoirs in which the district ham an ownership or r j I operational interest) which are needed or are appropriate to E I i carry out the powers and functions of the district, as herein described and contemplated) provided, however, that the power of eminent domain shall be exercised in the manner and with the privileges, rights and immunities available under the laws of I ~ ` the state, including specifically the Texas property Code. It I` { is provided further that the district shall not exercise the power of eminent domain (i) against any property located i within an incorporated city located in whole or in part within the county without the prior consent of the governing body of the city in whose jurisdiction the subject property is located, + (il) against any property owned by the county, by any municipality or any agency or instrwantality thereof, or (iii) to acquire a waterworks system or a wastewater system that is ` owned by any municipality, or by private parties, of by any non-profit corporation. (d) The district is hereby vested with and shall have and may exercise the following additional rights, powtrs, I 1 j I 1 S prisiltges, autrarittes and functions; to provide for the acquisition, construction, improvement, maintenance and operation of wholesale water and wastewater systems and treatment works necessary to provide service to its customers, and the acquisition, construction, improvement, and maintenance of any water supply, reservoir or interest therein necessary to fully implement the powers and duties of the district as provided in this act. (e) The district may elect to provide water, wastewater, solid waste, or non-hazardous liquid waste services outside its i service area, but the district may not be compelled to supply such services for use outside its service area except by,order of the applicable state agency having Jurisdiction over such matters applied in accordance with applicable low. (f) The basic service area has the primary right to water or wastewater treatment capacity and to water supply in each classification which the district secures under petmit from the applicable state agency having jurisdiction over such matters. (g) This act does not compel any customer or prospective 1 Customer to secure water or wastewater service from the 4 district, szcept pursuant to contracts voluntarily executed. i (h) This act does not alter any outstanding permit, contract, or other obligation, not does it in any manner impair the rights of any entity to own, operate, maintain, of othetwiss use of control any water, wastewater, solid waste, or liquid waste system in accordance with the laws applicable to such entity. (l) The district is hereby vested with and shall have and may exercise all the powers needed to establish, acquire, operate and maintain a regional solid waste disposal system and i s non-hsaardous liquid waste disposal system. In connection with said system, the district shall provide the services I ; i ♦esta -10- 1 1) 1 I i 1 a. . a afforded ty such system to (i} any user as determined by the I ' board if the services are to be rendered within the basic service area of the district, and (ii) any customer if the +_etvices are to be tendered outside the basic service area. (i) The district is hereby empowered to establish and enforce rules and regulations for the protection of eater quality in and flowing to or from the areas in or surrounding the lakes, reservoirs and other sources of water supply owned, operated, or controlled by the district for the prevention of waste or the unauthorised use of water controlled by the district and for the regulation of privileges on any land, 1 reservoir, or any easement owned or controlled bls the district. Such rules and regulations shall be enacted and enforced in accordance with the procedures provided in Subchapter D of Chapter Sa of the Texas Slater Code, as amended, and shall be consistent with the applicable rules and I regulations of any agency of the state having jurisdiction over i ' such sources of water supply. I ; (k) The district shall have the power to establish rates I and charges to be assessed to customers of the district for each service renderod to much customers which rates and charges may be established by classes of customers, by project, or by t ' cram of service. (l) ►mere bands or other obligations of the district payable wholly from revenues are issued, it shall be the duty of the board to fit, and from time to bime revise, rates of compensation fat water sold and for wastewater of other services rendered by the district which will be sufficient to 1 pay the expense of operating and maintaining the facilities of the district and to pay such obligations as they mature and the interest as it accrues and to maintain the reserve and other funds as provided in the resolution of order authoriting such obligations. Ii area. -11- c. r r s I 1 1 ri T'e district may adopt, enforce, and collect 6 L I necessary charges, fees, or rentals for providing any district facilities or service and may require a deposit for any service ar facilities furnished, and the district may or may not provide that the deposit will bear interest. The district may discontinue a facility or service to prevent an abuse or i enforce payment of an unpaid charge, fee, or rental due to the district. All cities, public agencies, political subdivisions and any other entities that contract with the district are ` authorized to fix, charge, and collect fees, rates, charges, I` rentals, and other amounts for any service or facilities provided pursuant to of in connection with any contract with the district, and to pledge such amounts sufficient to make all i payments required under the contract. (n) All funds and accounts of the district shall be audited by an independent auditor and a copy of such audit shall be maintained in the official records of the district. SECTION 1. 6onQs, Notsa and Con ra s of>10istri t. 11 f (a) The district is authorised to issue, sell and I ~ deliver its revenue bonds, notes, revenue anticipation notes, I l bond anticipation notes, short term obligations, refunding bonds, or other obligations for any and all of its purposes, without an election and upon such terms as the board shall determine appropriate. Such obligations may be made payable from all or any pact of the revenues of the district derived from any lawful source, including, but not limited to, any contract with any customer or user of the facilities owned or operated by the district under the provisions of this act or I from the ownership and operation of any waterworks system, wastewater arstem, sewer system, solid weste disposal system, i of non-hassidous liquid waste system, or any combination of f such systems. Additionally, such obligations may be payable from and eseured by liens on and pledges of all or an ~ Y pact of ~ aaaaa I •lt- I I i F any 01 the revenues, income. or receipts derived by the district from its ownership, operation, lease, or sale of any such property, buildings, structures, ar facilities, including the proceeds or revenues from contracts with any person, film, corporation, city, public agency, or other pr.litical subdivision or entity. Such obligations may be issued to mature serially or otherwise within not to exceed 40 years from their date, and provision may be made for the subsequent issuance of additional parity obligations, or subordinate lien obligations, under any terms or conditions that may be set forth in the resolution authorizing the issuance of the obligations. Such obligations are and shall constitute negotiable instruments within the meaning and for all purposes of the texas uniform Commercial code, provided that the j obligations shall be executed, and may be made redeemable prior to maturity, and may be issued in such form, denominations, and manner, and under such terms, conditions, and details, and may be sold in such manner, at such price, and under such terms, I and said obligations shall bear interest at such rates, all as j shall be determined and provided in the resolution authorising the issuance of the obligations. If so provided in the authorising resolution, the proceeds from the sale of the + obligations may be used for paying interest on the obligations during the period of the acquisition or construction of any facilities to be provided through the lssuance of the obligations, for paying expenses of operation and maintenance of facilities, for creating a reserve fund for the payment of the principal of and interest on the obligations, and for creating ear othst funds, and such proceeds may be placed on time deposit or Invested, until needed, all to the extent and in the manner provided in the authdrizing resolution. The district may pledge all or any pact of its revenues, income, or receipts from fees, rentals, rates, charges, and contract sells I -11- s pi;,ceeds or payments to the payment of the obligations, including the payment of principal, interest, and any other amounts required or permitted in connection with the obligations. The pledged fees, rentals, rates, charges, proceeds or payments shall be flsad and collected in amounts that will be at least sufficient, together with any other pledged resources, to provide for the payment of expenses In connection with the obligat'cns, and operation, maintenance, and other expenses in connection with the aforesaid facilities. Said obligations may be additionally secured by mortgages or deeds of trust on any real property owned or to be acquired by the district, and by chattel mortgages or liens on any personal property appurtenant to such real property., and i j the board Mal authcrire the execution of trust indentures, mortgages, deeds of trust, or other forms of encumbrances to evidence eame. Also, t`:e district may pledge to the payment of the obligations all or any part of ary grant, donation, revenues, or income received or to be received from the Umited States government or any other public or private source, whether pursuant to in agreament or otherwise. All bonds, 11 k +dthin the meaning of Article 717k-1, Yernon's Tesu Civil Statutes, so amended, Issued pursuant to this act, and the appropriate proceedings authorising their issuance shall be submitted to the Att -ney General Of the State of Texas for examination. It said bos,'s recite that they are secured by a pledge of revenues of any contract, a copy of such contract and the proceedings relating thereto shall be submitted to the attorney general. it he finds that such bonds have beam authorised and any such contract has been made in accordance with law, he shall approve the bonds and any such contract, and thereupon the bondr. shall be registered by the Comptroller of public Accounts of the State of Taxis; and after such approval and registration, such bonds and any such contract shall be folio i -la- I ~ r s imcoetastaale in any court or other forum for any reason, and shall to valid and binding obligations in accordance with their terms for all purposes. The issuance of obligations by the district shall be in accordance with the provisions of Article 117q and Article 717k-6, vernon, a Annotated Tesas Civil Statutes, as amended, as applicable. (b) The district is authorited to enter into any contracts with the United States of America, its agencies, any municipality, or other party, public, i.tivate, or non-profit, considered necessary in the exorcism of the powers and PutPosos of the district. The district is also authorized to enter into contracts for the acquisition, purchase, rental or leastng or operation of the water production, water supply, water filtration or purification, water supply facilities, or other water of wastewater facilities which are owned or operated by such contracting party. The district is authorised to acquire water appropriation permits and other necessary permits directly from the appropriate agency of the state or from owners of permits. contracts requiring a payment of money by the district may be made payable from any source of funds, general or specific, as may be determined by the board. 92CTION 10. ' M by Munlcialttied. Any and all municipalities, public agencies, political subdivisions, and any 506-ptottt water supply corpotation doing business wholly at partially within the district, and all subdistriees are stpresely authorized to enter into any contracts with the district that ate deemed appropriate by the respective governing bodies thereof. Such governing bodies ate authorized to pledge to the payment of sny sueb contracts any source of revenues that may be available to the governing body, including the levy and collection of ad valotem taxes, It such municipality or subdistrict has the power to levy and Collect such tailed, subyect only to the elections, it anY, that ate i .15. still, 1 1 i i r ' ceglytred -T applccab.s law, to be held prior to the levy of ad valorem taxes. To the extant a governinq body pledges funds to the payment of any such contract that are to to derived from its own water system or its wastewater system or its combined system, such payments shall constitute an operating expense of such system. SECTION II. Depository, The board, by order or resolution, shall designate one or more banks inside or outside the district to serve as depository for the funds of the district. Except as herein provided, all funds of the district shall be deposited in the depository bank or banks. The funds -1 of the district may be invested as provided in the laws of the State of Texas for the investment of county funds and may be invested in accordance with the provisions of the Public funds Invustment Act of 1917, as the some may be smendod from time to time. The funds of the district shall be secured In the manna provided by the laws of the State of Texas :or public funds. I SECTION 17. aeaulatory Power of Municipalities. This {I act does not exempt the district or any subdistrict or any land ` situated within the district from the terms and provisions of any applicable ordinances, codes, resolutions, platting and zoning requirements, rules or regulations of any municipality. ` PART II SUIDISTNICTS WITHIN AVTHOMITY SECTION 13, creation of Subdistriots. (a) To provide for the orderly development of water, westewster, and other services of the district within its boundaries and to prevent unnecessary duplication of facilities, the district is authorised to crate subdistricts. A petition requesting the creation of subdistrict$ within the district slay be presented to the board of the district, Any such petition must be signed by at least twenty-five (I9) persons who own property within the boundaries of the proposed 1 attn -lf- i i 1 i stbdititrict, cr such petition may be submitted by the governing body of a municipality when accompanied by a resolution or ordinance of such governing body authorising the submission of such petition. Any such petition shall specify, at a minimum, a metes and bounds description of the boundaries of the proposed subdistrict, the general nature of the improvements to be acquired, constructed or otherwise implemented within the subdistrict, the necessity and feasibility of such improvements, and the proposed method for funding such improvements. The petition shall state on its face whether the power to levy and collect ad valorem tests within and solely within the subdistrict is requested. If a subdistrict is proposed within the corporate limits or extraterritorial jurisdiction of a municipality, the petition requesting the I creation of the subdistrict shall be accompanied by an official action of the governing body of the municipality in whose j jurisdiction the subdistrict is proposed approving the creation of such subdistrict. Should the governing bad! of the i municipality in whose jurisdiction the subdistrict is proposed object to the creation of such subdistrict, then the subdistrict shall not be created within the incorporated limits or the esttoterritotlal jurisdiction of that municipality. (b) The board shell set a date for a hotting on such petition not less then thirty (30) not more than ninety (90) days after the day the petition to presented to tho district. notice of such hearing shell be given to each municipality within whose boundaries or estratertiterisl jurisdiction the proposed subdistrict would be located. A copy of the notice of the hearing shall also be posted in tbtee (1) public places located within the proposed subdistrict and at the county courthouse at least fourtatn (m days prior to the data set r~ tot the heating. notice of the hosting shall also be published at least one (1) time in a newspaper of general circulation la ala 1 f PabliSted in the county at least ten (10) days prior to the date of the hearing. (c) Any interested person may appear at the hearing for the purpose of supporting or opposinq the creation of the subdistrict in accordance with the petition. The herring shall be conducted in accordance with the procedures established by the board. i (d) Nfter the public hearing, the board shall enter an order making its findings in the official records of the district. If the board dooms the creation of a subdistrict to be feasible and practical and finds that the creation of the proposed subdistrict will be beneficial to the public, will benefit the residents of and the land included in the proposed subdistrict and will contribute to the orderly growth and development of the regional water and wastewater systems within the district, then the board shall enter an order granting the petition and ordering the creation or the subdistrict in accordance with subsection (e) of this section. The board shall include its findings in the order which shall be filed in the official records of the district. The order shall define the boundaries of the subdistrict, but it does not have to include all of the land described in the petition if the board in its )udgmerst determines that a modification or change in the subdistrict is necessity of beneficial to the public. If the board finds to the contrary, it shell enter an order dismissing the petition and the proposed subdistrict shell not be crested, but a dismissal order shall be without prejudice to the ability to petition for the creation or a subdistrict covering the same territory at a later time. (e) if the board orders the creation*( a subdistrict for which the power to levy and collect ad valorem tales was i not requested in the petition, the subdistrict shall be crested and in ellstence 11012 and after the date stated in the order of !V auaa -11- I, i' r t ~ qua district, witho-ut the necessity of a confirmation election within the boundaries of the subdistrict end any such subdistrict shall not have the power to levy or Collect Al valorem taxes. If the board enters an order granting a petition that seeks tie power to levy and collect ad valorem taxes within the subdistrict, then the subdistrict shall not be created until ane unless a confirmation election is called, conducted and held by the district within the proposed boundaries of the subdistrict and a majority of the qualified voters voting thereat confirm the creation of the subdistrict In accordance with the provisions of subsection (f) of this r~ section. If the subdistrict is confirmed at such election, { then the subdistrict shall have the power to levy and collect , ad valorem taxes for the maintenance and oyerstion of the subdistrict and for the payment of contracts of the district; provided that no such taxes .hall be levied and collected until and unless previously voted at elections held in accordance with subsection (f). (f) A confirmation election, when required by this section, and any election to authorise the levy and collection G of ad valorem taxes within a subdistrict for maintenance purposes shall be conducted in the manner required by Chapter $4, Texas Meter Coder for the levy and collection of maintenance taxes by municipal utility districts. Elections to levy taxes in support of contracts shall be held in the manner and with the effeot provided by Chapter. Sa, Texas Water Code, for the issuance of bonds by municipal utility districts, the confirmatiax election requited by this subsection, a maintenance tax election and an election authotising the levy of taxes to support bonds or contracts of the subdistrict may be combined into a single eloction, and say of all of such elections may be held on any day or dote selected by the board, Each such election shall be celled, convened and held ~ ~ aar,e k 4/'■~1 N , LI t p 1 A 7, 1 bT Lbe Wacd Lit actordance with the Texas Election Ccde and Chapter 54, Texas water Code. (g) A subdistrict, if created in accordance with this section, shall be a conservation and reclamation district under Article }NI, Section 59 of the Texas Constitution with the limited powers granted in this section. The subdistrict 1 constitutes a political subdivision and a corporate body and politic under the laws of this state. A subdistrict shall have the powers specified herein and shall have the same powers as 11 the district, but subject to the same limitations, and provided that a subdistrict shall not be authorized to provide services I outside its boundaries, except that it may provide retail water and sewer services within its customer service area is certificated by any applicable regulatory agency of the State f of Texas. (h) If a subdistrict is created as specified above, the subdistrict shall be governed by a board of supervisors i consisting of at least five (S) supervisors. The initial lpoard of suparvlsoca shall be appointed by the district from among , the residents of the subdistrict. The district shall make such I I appointments for terse specified io the order creating the 1 E subdistrict but not r, -:ceding four (a) years from the date of I appointment. Such initial supervisors ate subject to removal, with or without cause, by action of the district. All vacancies shall be filled by the district. After the initial appointment of the based of supervisots and prior to the issuance of any bonds, notes, or other obligations of the subdistrict, membets of the board of supervisors shall be elected in the manner provided by the laws of the state of I Toss applicable to municipal utility districts. Notice and the conducting of such election ahil1 be in accordance with such laws, ! I staid -10- I 1) 1 1 i 1( d S . t i0 TU subdistrict shall have all the powers provided elsewhere in this act and shall have ownership of and general management powers over the affairs, works and projects of the subdistrict subject to the provisions of any contracts with the district. However, the issuance of bonds by the subdistrict i shall not be effective until such issuance is approved by official action of the district. (j) In those subdistricts having the power to levy and collect ad valorem taxes, the tae rates shall be established by the board of supervisors on the baste of annual budgets established at the mama time and in the same manner as for counties, and taxes shall be levied by Uiw board of supervisors. (k) The members of the board of supervisors shall receive no compensation for serving as a supervisor but may be i reimbursed for actual reasonable expenses necessarily incurred on behalf of the subdistrict or in the discharge of their 1 official duties. (1) Subdlstricts crated in accordance with this act may only Decode participating menbeea of the district. j SECTION 11. Conversion of Mater Supply Corpotitiort to Subdiat[icts. (a) Upon the adoption of s resolution by the board of directors of any non-profit water supply corporation I doing business wholly or partially within the boundaries of the district and requesting such action, the board may consider the question of converting such non-profit water supply corporation i to s subdistrict by following the same• procedures otherwise ' requited by section 13 of this act and subsection (b),belov. (b) The resolution of the board of directors required above shall inclut'e, in addition to the information specified in section 13(a) for petitions to be [filet with the board of the district, a plan of conversion, including, among ethers, the proposed method for the tranrfer of assets and the 1 essumption of debts to the subdistrict. i rsrre i i I J i 4 ~LL 1 lei if determined to be appropriate by the board, the dlatricIt , at the request of the board of directors of such non-profit water supply corporation, may establish a board of supervisors if, greater number than specified herein for other such subdistrict. (d) Notwithstanding any provision of this act to the contrary, any water supply corporation that was a member of the Denton County 8tearing Committee in connection with the Denton County water and wastewater Study Regional Master Plan for 2010 may become either a contract member or a participating member in accordance with the provisions of this act. SECTION 13. Meetinaa of loard of supervisors. The board of supervisors of a subdistrict shall hold regular, special or emergency meetings at those times and on those dates the board determines. SECTION Ii, Subdistrict officer Meeting place, The board of supervisors of each subdistrict shall designate a place within the subdistrict as the regular office sad meting place, except that the regular meeting plan may be at the regular meeting place of the district if approved by order of ~ l the district. SECTION 17. Collection of Ta18s within subdistricts. i (a) The County tax 81848109-collector of the county shall maintain the tam tolls and collect taxes for any subdistrict located In the unincorporated aces of the county and having taxing power in the same manage as for taxes for the county. The tam 4186esor-collector tot the other subdiatricte J shall be es selected and shall perform the duties determined by the board of supervisors. (b) Asimbursement of the costs of the tam assessor- , collector fog such services shall be paid by the subdistrict. (c) Tows and other revenues collected within a subdistrict shall be used solely for purposes within the area ~ -22- I ~ I J 1 i 1 4 r sebdlstxitt, accept that the costs of administration of the i affairs of a subdistrict may be paid to the district in it accordance with contracts between the district and the subdistricts. All taxes and revenues of a subdistrict as callected shall be deposited as public funds into accounts of the subdistrict approved by the district. All accounts of a subdistrict sha11 be audited by an independent auditor and a vapy of such audit shall be maintained in the official records of the subdistrict and the district. All such funds may be 111 deposited or invested as permitted for publiL funds. PART III MISCMANtOUS SIVION is. Creation txpenaes. The district Is authorised to pay all costa and expenses incurred in the creation and organisation of the district, including but not limited to the reimbursement of costs and expenses incurred by the Denton County Steering Coarsittes in the preparation of the Denton County water and Wastewater Study Regional Xaster Plan for 7010, and the Upper Trinity Municipal Water Authority, loc., is the development and implementation of such study. The district is authorised to succeed to and assume the rights, privileges, duties and responsibilities, including contractual obligations, incurred by the Upper TrinLty Municipal Water Authority, inc., a nonprofit corporation crested to serve on GA intaxi■ basis poodiag the creation of the district. III SSCTION N, U& Szonkip~, The accomplishment of the purposes stated In this act being for the berlafit of the people of the state and for the improvasent foe their properties and Industries, the district and thn subdistricts in carrying out the purposes of this act will be performing an essential public function under the Constitution and shall not be required to Pay any tax or assessment on any property or project owned, operated, loomed, or Controlled by the district or any part j stall I r IIi r~ 3 r ~ cnerenf, sad the conds at other Obligations issued hereunder and their transfer and the income therefrom, including the profits made on the sale thereof, shall at all times be free from taxation within the state. SECTION 70. Severibilitv. If any provision of this act or it■ application to any person or circumstance is held invalid, the Invalidity does not affect other provision or application of this act that can be jiven effect without the invalid provision or application, and to this and the provisions of this act its declared to be severable. The terms and provisions of this act are to be construed liberally to effectuate the purposes, pow u, rights, functions, and authorities herein set forth. ' j SECTIOR tl. ot Ics. The legislature specifically finds and declare$ that the requirements of Article 191, section SO(d) and Ration Sl(e) of the Uses Constitution, t) the extent applicable, have been met and accomplished in due course, time and order and that all notice required to be given relating to this act has been given, that all approvals required to be obtained pursuant thereto have bean obtained, and that the legislature has the authority and power to enact this act. 82CIA011 27. tmetooncv. The importance :f this legislation and the crowded condition of the calendars in both t houses Crate an emergency and in tspetative public neeeesity i i that the constitutional rule requiting bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this act talus *fleet and be in force troy and after its pssage, and it is so enacted. } Solis ---------.r-. -ti. F' R r-i f ii 3 f ~ i~ ~1 i I 1 i ~ ~ i i ~ 1 1 1 I II 1 I 444,` 1 t I i i 4 f e I 1 I I January 6, 1989 f CITY COUNCIL REPORT FORMAT of TO: Mayor and members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Resolution Authorizing City Staff to Apply for a 1 Texas Parks and Wildlife Department Local Park +11 Fund Grant RECOMMENDATION: The Parks and Recreation Adv.dory Board wishes to recommend to the City Council that this resolution be adopted in pursuit of a 50-50 matching grant for the renovation and further development of athletic facilities at Denia Park. I UMMA RY_ - In order to apply fo a 50-50 matching grant from the Local Park Development Fund through the Texas Parks and Wildlife Department, the City Council must a,,prove a resolution authorizing its staff to participate in the program as f well as certify the City is eligible to receive such assistance under the program. BACKGROUND:- The bond issue passed in 1986 authorized $1.3 million to improve athletic facilities at Denia, Evers, and North Lakes Parks. The City has previously sought matching funding for park development. Three projects have been fur,~'?d at North Lakes Park, general improvements at Denia, Evers, Mack, and Skiles Parks, ~4y da le pp rkk w der const uction. OGRR~S~ DE~AI~T YEN OR GR06PS AFFECTED: If the grant request is funded, the development project is essentially doubled providing for money to renovate the 25 year old lighted ballfields currently at Dena: k Park as well as a new concessionJrestroom facility. The bond issue will provide for 1iQh~ f tin fields and development of two new softball fields and additional a FI~Cl~L CT: gpractice fields for girls' softball. Fiscal impact is positive with the state matching the local contributions from 1 approved bond funds. The local share is $200,000. Total grant project will be $400,000. RESPE LILLY SUeM~ TTED: I i City Manager Prepared by: Name Robert K. Tickner Title Superintendent of Parks ~ A ved: Na Title I, J i ' i i 2544L RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON DESIGNATING CERTAIN CITY OFFICIALS AS BEING RESPONSIBLE FOR, ACTING FOR, AND ON BZHALF OF THE CITY OF DENTON IN DEALING WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT FOR THE PURPOSE OF PARTICIPATING IN THE LAND AND WATER CONSERVATION FUND ACT OF 1965; CERTIFYING THAT THE CITY OF DENTON IS ELIGIBLE TO RECEIVE ASSISTANCE UNDER SUCH i - PROGRAM; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the United States Congress has passed the Land and Water Conservation Fund Act of 1965 (Public Law 88-578), auth- orizing the Secretary of the Interior to provide financial assistance to states, and political subdivisions thereof, for outdoor recreation purposes; and WHEREAS, the Texas Legislature has adopted Article 6081r, V.A.C.S., for the purpose of allowing the State of Texas, and its political subdivisions, to particip8ate in the Federal program aesstablished under by the Federal Government; andg ams WHEREAS, the City of Denton is fully eligible to receive assistance under this Program; and WHEREAS, the City Council of the City of Denton is desirous of authorizing its administrative staff to represent and act for the city in dealing with Texas Parks and Wildlife Department + concerning this Program; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That the City Council of the City of Denton that Cit assistancet under Public e88 578 as eaugme ted byiArticler6081re V.A.C.S. SECTION II. That the City Council hereby authorizes and directs Tte___Cffy Manager to represent and act for the City of { Denton in dealing with the Texas Parks and Wildlife Department for the purpose of this Program. The City Manager is hereby officially designated as the City's representative in this regard. SECTION III. The City Council hereby designates its Executive Director or as the official authorized to serve as the j City's fiscal officer to receive Federal funds for purposes of this Program. i I 1 J a t } k , r SECTION IV. The City Council hereby specifically authorizes the City officials herein designated to make application to the Texas Parks and Wildlife Department concerning the tract of land known as Denia Park in the City of Denton. SECTION V. The City Council hereby specifically authorizes the City officials to make application to the Texas Parks and Wildlife Department concerning the site to be known as Denis Park in the City of Denton for use as a park site. That Denis Park is hereby dedicated for public outdoor recreation purposes in perpetuity. PASSED AND APPROVED by the affirmative vote of the City Cou cil of the City of Denton, on this day of , 198. RAY STEPHENSO MAYOR I f ATTEST: i JENNIFER WALTER S$ CI SECRET l APPROVED AS TO FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY i BY: , H t I I~ I 3 5 -10-M sum d ISM I 'l I /y ~ g ■ 1 , 1 7-T 1 I Denla Park Master Plan (RP TOO" "I'll 4,,, 1 i ff`'Il,l~,li<<I'9'~=~!I~f11111!!I!~:~ I - a w too tw 11 '11i I!1`~1W!-- sui[ IN rttr I i . I I 6 Y 1 t j j 1 1 I ~ I i I • II 1 I j i i ~ I E3:1713-T7-r= T71jEL3JJLjL INN T7T-T I I I I I ~ V f DATE: 1/17/89 4 CITY COUNCIL REPORT FORMAT Cf~ / Council Tp; Mayor and Members of the City FR0A: Lloyd V. Harrell, City Manager SUBJECT: CONSIDER ADOPTING A RESOLUTION SETTING THE TIME, DATE AND PLACE FOR PUBLIC HEARINGS FOR THE ANNEXATION OF PROPERTY ALONG THE ELM FORK OF J ]J THE TRINITY RIVER (A-58) I RECOMMENDATION: Staff Public recommends t would attached be schschedule eduled onr Fthe ebruaryxa7,on 1989 process. and February 21, 1989. A speTial called meeting on March 16 , 1989 would i be necessary to institute the annexation. h SUMMARY: eretmo era This annexation would complete the extension of the City Lake Ra) Roberts. A letter has been sent to the property reques,tng consent for a voluntary annexation o1 ' strip. An involuntary annexation would require a minimum 110001 strip. j1 BACKGROUND: J The City of Denton has annexed property in this area over the past 1 Ir 4 years in an attempt to control water quality and subdivision of I property. I PROGRAMS DEPARTMETTTS OR GROUPS AFFECTED: Fourteen property owners would be affected by this annexation, including the Corps Engineers. FISCA, L_ I_ MPACT_e City services must be provided within the City limits. The costa would be minimal because of the width of the annexation. Reap ully_~sbm d: Lloy V. Harrell Prepared by: City Manager Cecile arson Urban Planner , . I Approved: Fr ink H. Robbins Executive Director for Planning and Development 2414a I J r I a z v ANNEXATION SCHEDULE A-58 January 17, 1989 City Council sets date, time and place for public hearings January 22, 1989 Notice published in Denton Record i Chronicle for first public hearing February 7, 1989 City Council - first public hearing February 10, 1989 Notice published in Denton Record Chronicle for second public hearing I February 21, 1989 City Council - second public hearing February 22, 1989 Planning and Zoning Commission makes recommendation March 16, 1989 City Council institutes annexation Special Called Meeting March 17, 1989 Publication of ordinance in Denton Record Chronicle April 18, 1989 Final action by City Council I I I i s 100 FT ANNEXATION A-58 WIDTH HOATH r 4- 5 . 1. eo HYl J ioQ 3 2 P G l17Ac its. n. rig. I, Pc P yP 6s4Ac 11.5.10, • :avA. f s M. H 1 V CNAS. /Ac 1 1 1 J m 122. = p_0A TER JO A. BU FR { 4 VA.:77. ?A9Il 10A t P~ r . urger Ro. 3,. ~rL /0 AC ui At .11 of R MINNIS /OAe \ \ P Ac. v~ . Am P » h[ 74 Ac y. JACK LES ArATY `rn JOHN PORTER A(/TO MAYS 0 1e3.sA9 123 Ac. M,IfTNf ' 35 AC BOBBY Me0OWELL 14.1. Ac C. , -her A k u 477Ac. c ra y ' 9G.3 !Ac M 30A I P /*7,A<, It 248M !i 40 Ac !O A9`a m 4 30Ac aLAELEY 0,4 Aa' [VAN ' S 44 Ac. " M exlnn1y G• 2L3Ac ; T1 R H. VENAOL[ IoAc~ EAG41 iARfit! t 1t~ylt 124.549 Iu 4 AlAc JA Ni A9. R. N. VIA r ASSK J. PRO OSED al. L R. ASSOC CITY LIMITS 73. 9q AC PRESENI• DAYE M4YAWRY CITY LIMITS 4, ET 4L " //0 Ac 78 Ac D[N " PERMAN SM/rN c Its Ac 0.0. BEATY 2&A4 102.6 Ac 74. S Ac v. i 1 y1 PQ 1! if L 4 1 c Y t!8 r. " CAGtS 1. i A. 4 Z t0.a4. IAYAe/t RN. t O S A, c 1447 A CALL Q 4.s Ac. 1i Q,L 1 I I 1l 1 A~t 1 1 1 [ 1 1000 FT ANNEXATION A-58 WIDTH NORTH a V1 p 947 AS G wpe P C3 65.4 Ac U,SQ" z V Ae. I f. f, SIRrNGO CHAS. Me { j 122. e IONN Mew fc AUTO JOA OUR4ER aA~3 a bpi 1011 AC 772Ae. roAc' ~y I a L WAu 6'r 4 Q? "l IoAC l P 1 r urger R0. ~ti We 22 AS \ 42 R. M1NN/f P v s p 10A is Ac. u ~N 74 At • 5 JACK qA I JONN PORTER A(!TO f MAY L, S B[ATY F~ c 11l.3Ac 123 Aa. Af.P rAW ~P 1 3l AC z Ci 'rIr x ROBBY MGDOWELL .Q ; ~4,y,►c n d • - a fAe it, 30A a y' p /*TAk. 1 9i.! 40 Ac J If -A 141M 10kn 2 vt n 30Ae 64AA ft 10 .1e. 8YANS 14 At. MimaY a 4i 28.3A 7~ 24.1. a R N. YENA BLE 10 k. ZAGLE FARMS in 3C M r a,;,JV 124.5 Ac A. N. VIA t eva 4 23.4a AIL If 4 Ac. yT r A PROPOSED °4r 1"f' AS I t~~7 3 s CITY LIMITS o I r, R. Assoc PRESEN U19 At GAVE MAreERRYCITY LIMITS i~ //0 At I 0, !T AL Y t TO Ac PERMAN SM/TN a l 1 DEN /SSAc 7 0V..BEATY 2A At 74.5 At, r, 102.6 At p~~ b 2t ",e r 4 , a I AAi ?SIA+ " A. CAOL~ t f0 IAsPAYLOR R H VENABLE VL22'R ` 34lTAe O.SAa uG1 4a 7, ;R N~ ?L At Q LEAs. l tl s 3 Q4'oh t. Q L I ~I I I i ~I i I 1 1000 FT ANNEXATION A-58 IWIDT. NORTH .f 04,66 I y Q 31.2 O V. 96,7 Ac 4'Mllt. l• • Q, s. f 5p 65-IF Ac 2ttA I t. c J,R/NGd f ~ [NASAk 122, t ✓OIIA/ PoR/CR i ~ v M d 4 ~'Y Y JOA ZIIRGER A~ ~ loll Ac 77 akt • Q e y /eA r c WAND /rA/ ~r /0 At urger Pd. 140 Ad: ` 22Ae R MINN/S P /0A b \0 11 P Je Ae. ` II Ac y JACt I` vA JOHN PoA'TER AUTO CNAR[ES atATY At A vs R F ^ / o IAJ. 2 Ac / 123 As. M. PITNfR 3J ` 1g06BY Me WELL c A 14,6 A. 4J u " e r SAC M' 30Ac P /~TAt. 0 9i.3 r` 40 Ac 21 a A/ 10 Ae' 4 7--7c tl M SOAe t' LUA Y I 10 Ac • l SPANS If k, cKlnnfy rl to USA 71 fO k LAQLE iARM3 a 3l R.K. VLNA OLE J V /14.. S Ac Ali _174 AS~AC , I46APROPOSED are°4+ Rv vs9 ~yY ia.Y CITY LIMITS o rR.A•ssc t. PRESENT I 75.19 Ac CITY LIMITS 1 DAVE MAYWITY t' I/O Ac G, LTA! M s If Ac PLRMAN SM/TN • c D6N ISSAc 0.0. BEATY 26 Ae 102.4 Ac 74. S A c y1 1 pQ 2! i 1• it L t. c c ISSAm 1• A. CAGLf o: fe.f /AYLOR R. M. VLNARti t/LL[R V; y Y • 21lTAc D.fAc WOLF 4N t' ~.t~ NI 4tAe. tl s. Q i i I i, I i i r y I 2612-Ij RESOLUTION NO.___--- fE FOR PUBLIC HEARINGS ON A RESOLUTION SETTING A DATE, TIME AND PEA THE PROPOSED ANNEXATION BY THE CITY OF DEt::ud, TEXAS OF CERTAIN PR - H PERTY AS DESCRIBED IN EXHIBIT A ATTACHEDERETO AND AUTHORIZING PUBLISH NRBY E REOF SUCH SOLVES; PUBLIC HEARINGS. AND THE COUNCIL DIRECTING OF THE THE MAYOR TO CITY OF DENTON HE 1989, at 7:00 da of ' al Building SECTION I. On the y Counci o'cloc P- -1 the City Council Cham err o ilia will p of l will hold a public of Denton, Texas, the City ht to appear and be the city persons the rig Texas, of heAring giving all interested the City of attaches Denton, hereto and heard on the proposed anneintiE~hibit the property described incorporated by reference herein. 19890 at 7:00 o'clock P.M. day of t e Fiuniclpal Building of the City On the in the City Council Chem ers o ublic 'earing of Denton, Texas, the City Council will hold er and be heard on arsons the right f Denton, Texas, of the giving all interested p the city the proposed annexation by attached hereto and incorporated 4 property described in Exhibit "A", by reference herein. is hereby SECTION II. The Mayor of the City of Denton, Texas, r public hearings to be published an once re in a directed to newspaper hnotice Of such aving general irculation in the autho twenty days nor less than ten described in Exhibit "A", not more than City and in the territory vs prior to the date of such public herein than hearings, all in accordance with the Municipal Annexation Act (Chapter 430 Local Government Code). This resolluSeo shalapprovall in full force and effect SECTION III. immea ate y o lowing its passage ~ 1989. day of PASSED AND APPROVED this the I ATTEST: e i 'rg~~ APPROVED AS TO LEGAL FORM' ATTORNEY DEBRA ADAMI DRAYOVITCH, BY: i I ~ i r f 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 the M. McBride survey, Abst. No. 804, W. Tanzy survey Abst. No. 1253, S.A. b M.G. R.R. Survey, Abst. No. 1228 and more fully described as follows: BEING a strip of land 1,000 feet in width and containing approximately 310.5678 acres or land more or less, said 1,000 foot strip lying 500 feet on each side of the centerline described below; BEGINNING at a point lying in tht centerline of the Elm Fork of the Trinity river, said point lying 434.43 feet, more or less, southeast of the northwest corner of a tract conveyed from If Daniel M. Mahoney Realtors, Inc. to D.M. Mahoney/O.S. Royalty Joint Venture by a deed dated January 30, 1981 and recorded in Volume 1058, Page 603 of the Deed Records of Denton County Texas said point also lying in the east boundary line of a tract conveyed from J.W. Porter to Eagle Farms, Inc. by a deed dated July 19, 1979 and recorded in Volume 963, Page 734 of the DRDCT; THENCE nort`westerly along the west boundary line of said i Mahoney Tract and the east boundary line of said Eagle Farms, Inc. Tract the following two courses and distances, (1) north 130 15' 59" west a distance of 252.74 feet; (2) north 400 05' 18" west, 1A1,59 feet to the wasterly northwest corner of said Mahoney Tract and the southerly southeast corner of Tract II as conveyed from Scenic Joint Venture to E.L. Hughes and Ray Lynch by a deer.' dated December 30, 1986 and recorded in Volume 2062, Page 311 of the DRDCT; THENCE northerly the following 12 courses and distances along the west boundary line of said Hughes Tract and continuing along the east boundary line of said Eagle Farms Tract, (11 north 550 6' west 169.0 feet; (2) south 830 03' west, 303.2 feet; (3) south 370 6' west, 393.0 feet; (4) south 650 16' west, 236.7 feet; (5) north 60 40' west, 400.2 feet, (61 north 70 46' east, 336.6 feet; (7) north 800 22' east, 597.4 feet; (8) north 310 53' east, 149.6 feet; (9) north 40 10' west, 702.9 feet; (10) north 630 02' west, 1,153,2 feet; (11) north 90 4S' west, 231.2 feet; (12) north 180 18' east, 109.2 feet to the northwest corner of said Scenic Joint Venture Tract and the northeast corner of said Eagle { Farms Tract said point also being the southwest corner of a tract of land conveyed from Charles D. Hall to Clyde A. Blakeley, Jr. and wife Minnie B. 8lakeley by a deed dated January 10, 1966 and recorded in Volume $33, Page 434 of the DRDCT and being the southeast corner of Tract One as conveyed from Scenic Joint Venture to E. L. Hughes and Ray Lynch by a deed dated December 30, 1986 and recorded in Volume 2062, Page 311 of the DRDCT, said point also lying in the centerline of an east/west public road known as McKinney Bridge Road; I I TF'ENCE northerly the following 4 courses and distances along the centerline of said Elm Fork same being the west boundary line of said Tract One and they east boundary line of said B lakeley Tract, (1) north 180 18 east, 180.6 feet; (2) north 50 feet36' east, 420.O feet; (3)~ north 420 21' west, 282.8 (4) north 21o 1630.0 west, 217.14 feet to the northwest corner of said Tract One and the northeast corner of s aid Blakeley Tract said point also lying in the north boundary line of boundary line of c said e Tansey SurveAbs y t. AbsNo. t. No. 125and t e South i 3, said point also being the southwest corner of a tract conveyed from Daniel BobbiensBanMcDowellBarbara Evans deed tdatedb December .1 , 1and 977 wife, recorded in Volume in 875, Page 783 of the DRDCT and the CharlessW.cMcCallum by ardeed cdated eAugust 2, 1960 T. and recorded in Volume 458, Page 362 of the DUCT for corner, THENCE northerly the following 2 courses and distances, along the centerline of said Elm Fork same being the west boundary McDowell said McCallum and the 30" swest,un198.55infeet; said i n orth 80 22' 30" west, 867.94 feet to the northeast -corner of said convMcDowell from Tract Evand the ans, et southeast John nWr Porter tract Auto of land Inc., by a deed dated August 23, 1971 and recorded in Volume 627, Page 539 of the DRDCT for corner, THENCE northerly the following 7 courses and distances along the centerline of said Elm Fork continuing along the west boundary line of said McCallum Tract and the east boundary line I of said John Porter Auto Sales Inc. Tract, (1) north 1403' 30" east, 230.9 feet; (2) ,orth 470 55' 30.0" east, 142.3 feet; (3) north 650 17' east 260.3 feet; (41 north 170 18 30" east, 285.3 feet; (5) north 120 2' west, 309.8 feet; (6) north 70 39' west, 357.9 feet; (7) north 20 20' 15" west, 33 feet to the northeast corner of the remainder of the John N. Porter Auto Sales Inc. Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Mike Ramos by a deed dated September 10, 1984 and recorded in Volume 1530, Page 151 of the DRDCT for corner; THENCE northwesterly the following 2 courses and distances lailnoengofthesaicdenMcterline along the west line b of nsaid Ramos Tract, (1) north 200 20' 75" west, 27.8 feet; (2) north 180 7' west, 252.0 feet to the northeast corner of said Ramos Tract and the southeast corner of a tract conveyed from John N. Porter Auto Sales, Inc. to Susan Porter by a deed dated September 10, 1984 and recorded in Volume 1530, Page 147 of the DRDCT for corner; THENCE north 180 07' west along the west boundary line of said McCallum Tract and the east boundary line of sail Susan Porter Tract a distance of 317.75 feet to tie northeast corner of said Susan Porter Tr!+,t and the southeast: corner of a tract conveyed from John Y. Punter Auto Sales, Inc. to John R. Porter , by a deed dated September 10, 1984 and recorded in Volume 1623, Page SOS of the DRDCT for corner; I I I r r THENCE northwesterly the following 3 courses and distances along the centerline of said Elm Fork, same being the west boundary line of said McCallum Tract and the east boundary line of said John R. Porter Tract, (1) north 180 7' west, 13.05 feet; (2) north 170 49' 30" west passing the northwest corner of said McCallum and the southwest corner of a tract conveyed from Charles W. McCallum and wife Winnye B. McCallum to the G United States of America by a deed dated November 18, 1981 and recorded in Volume 1113, Page 158 of the DRDCT and continuing for a total distance of 245.5 feet; (3) north 200 19' 30 II west, 50.98 feet to the northeast corner of said John k. Porter Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Vaughn Andrus by a deed dated September 10, 1984 and recorded in Volume 1523, Page 50, of the DRDCT for corner; THENCE north 200 14' 30 west along the centerline of said 1 Elm Fork, same being the west boundary line of said McCallum to USA Tract and the east boundary line of said Vaughn Andrus Tract a distance of 343.12 feet to the northeast corner of said Andrus Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Ann, Andrus by a deed dated September 10, 1984 and recorded in Volume 1523, Page 513 of the DRDCT for corner; THENCE north 200 19' 30" west along the centerline of said Elm Fork, some being the west boundary line of said USA Tract and the east boundary line of said Ann Andrus Tract a distance of 377.33 feet to the northeast corner of said Ann Andrus and ; the southeast corner of a tract conveyed from John W. 'Porter Auto Sales, Inc. to Betty Cochran by a deed dated September 10, 1984 and recorded in Volume 1523, Page 517 of the DRDCT; i THENCE northwesterly the following 2 courses and distances along the centerline of said Elm Fork, same being the rest boundary lline of ine of said Cochran McCallum Tract, USA (I Tract north a 200 t19' e30" boundary west, 202.87 feet; (2) north 270 43' 30" west, 387.0 feet to the northeast corner of said Cochran Tract and the southeast corner of * tract conveyed from Jo Ann Burger to the United States of America by a deed dated October 5, 1981 and recorded in Volume 1107, Page 209 of the DROCT for corner; THENCE northwesterly along the center of said Elm Fork same being the west boundary line of said McCallum to USA Tract and the east boundary line of said Burger to USA Tract a distance of 868 feet to the northwest corner of said McCallum to USA Tract and the northeast corner of said Burger to USA Tract, said point also lying in the north boundary line of said Tansey 1 survey and south boundary line of said S.A. a M.G. R.R. Survey, also being the southwest corner of Tract 216-1 as conveyed from k William E. Campbell Jr., et al to the United States of America by a deed dated April 12, 1982 and recorded in Volume 1136, Page 801 of the DRDCT and the southeast corner of Tract No. 213 as conveyed from John W. Porter et al to the United States of America by a deed dated August 24, 1981 and recorded in Volume j 1096, Page 787 of the DROCT for corner; i i 1 k I a r r THENCE northwesterly along the centerline of said Elm Fork same being the west boundary line of said Campbell to USA Tract and the East boundary line of said Porter to USA Tract a distance of 2,678 feet to an angle point in the west boundary line of said Campbell to USA Tract and the east boundary line of said Porter to USA Tract, said point also lying in the west boundary line of said S.A. 3 M.G. R.R. Survey and the east boundary line of the W. Cox Survey, Abst. No. 291 for the Point of Termination. 1 i i t i I I i 2b12L NOTICE OF PUBLIC HEARINGS ON PROPOSED ANNEXATION NOTICE IS HEREBY GIVEN TO ALL INTERESTED PERSONS THAT: The City of Denton, Texas, proposes to institute annexation proceedings to alter the boundary limits of said City to add the territory described in Exhibit "A", attached hereto and incorporated by reference herein, to the corporate limits of the City of Denton. A Public Hearing will be held by and before the City Council of the City of Denton, Texas, on the day of , 1989, at 7:00 o'clock P. It. in the C ti y Council C am ere o the Municipal Building of the City of Denton, Texas, for all persons interested in the above proposed annexation. At said time and place all such persons shall have the right to appear and be heard. Of all said matters and things, all persona interested in the things and matters herein mentioned, will take notice. A Public Hearing will be held by and before the City Council of the City of Denton, Texas, on the day of , 1989, at 7:00 o'clock P. M. in the C ti y Z`ouncii C a-m6erof Fie j Municipal Building of the City of Denton, Texas, for all persons 1 j interested in the above proposed annexation. At said time and place all such persons shall have the right to appear and be heard. Of all said matters and things, all persons interested in the things and matters herein mentioned, will take notice. RAY STEPHENS, MAYOR ATTEST: JENNIFER W CER , CI SECRETARY i A-S8 r I I I EXHIBIT "A" i 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 the M. McBride survey, Abst. No. 604, W. Tanzy survey Abst. No. 12530 S. A. 8 M. G. R. R. Survey, Abst. No. 1228 and more fully described as follows: BEING a strip of land 1,000 feet in width and containing approximately 310.5678 acres or land more or less, said 1,000 foot strip lying 500 feet on each side of the centerline described below; BEGINNING at a point tying in the centerline of the Elm Fork of the Trinity river, said point lying 434.43 feet, more or less, southeast of the northwest corner of a tract conveyed from 1 Daniel M. Mahoney Realtors, Inc. to D.M. Mahoney/O.S. Royalty Joint venture by a deed dated January 300 1981 and recorded in Volume 1058, Page 603 of the Deed Records of Denton County Texas said point also lying in the east boundary line of a I tract conveyed fron J.W. Porter to Eagle Farms, Inc. by a deed dated July 19, 1979 and recorded in Volume 963, Page.734 of the DRDCT; I THENCE northwesterly along the west boundary line of said Mahoney Tract and the east boundary line of said Eagle Farms, Inc. Tract the following two courses and distances, (1) north 130 15' 59" west a distance of 252.74 feet; (2) north 400 05' 18" west, 181.65 feet to the westerly northwest corner of said Mahoney Tract and the southerly southeast corner of Tract Ii as conveyed from Scenic Joint Venture to E.L. Hughes and Ray lynch by a deed dated December 30, 1986 and recorded in Volume 2062, Page 311 of the OROCT; THENCE northerly the following 12 courses and distances along the west boundary line of said Hughes Tract and continuing along the east boundary line of said Eagle Farms Tract, (1} north 550 6' west 169.0 feet; (2) south 830 03' west, 303.2 feet; (3) south 370 6' west, 393.0 feet; (4) south 650 16' west, 236.7 feet; (5) north 60 40' west, 400.2 feet; (6) north 70 46' east, 336.6 feet; (7) north 800 22' east, 597.4 feet; (8) north 310 53' east, 149.6 feet, (9) north 40 10' west, 702.9 feet; (10) north 630 02' west, 11153.2 feet; (11) north 90 45' west, 231.2 feet; (12) north 180 18' east, 109.2 feet to the northwest corner of sLid Scenic { Joint Venture Tract and the northeast corner of said Eagle Farms Tract said point also being the southwest corner of a f tract of land conveyed from Charles D. Hall to Clyde A. Blakeley, Jr. and wife Minnie B. 8lakeley by a deed dated January 10, 1966 and recorded in Volume 533, Page 434 of the DRDCT and being the southeast corner of Tract One as conveyed from Scenic Joint Venture to E. L. Hughes and Ray Lynch by a j deed dated December 302 1986 and recorded in Volume 2062, Page 311 of the ORDCT, said point also lying in the cvnterline of an east/west public road known as McKinney Bridge Road; { I I _7 I ,A V THENCE northerly the following 4 courses and distances along the centerline of said Elm Fork same being the west boundary line of said Tract One and the east boundary line of said 8lakeley Tract, (1) north 180 18' east, 180.6 feet; i2) north 50 36' east, 420.0 feet; (3) north 420 21' west, 282.8 feet; (4) north 210 16' 30.0' west, 217.14 feet to the northwest corner of said Tract One and the northeast corner of said 8lakeley Tract said point also lying in the north boundary line of said McBride survey, Abst. No. 804 and the south f boundary line of said Tansey Survey, Abst. No. 1253, said point 1 also being the southwest corner of a tract conveyed from Daniel H. Evans and wife, Barbara Evans to Bobby G. McDowell and wife, Bobbie B. McDowell by a deed dated December 1, 1977 ano recorded in Volume in 875, Page 783 of the DUCT and the southeast corner of a tract conveyed from John T. Cerpbell to Charles W. McCallum by a deed dated August 2, 1960 and recorded in Volume 458, Page 362 of the DROCT for corner; i THENCE northerly the following 2 courses and distances, along the centerline of said Elm Fork sane being the west boundary line of said McCallum Tract and the east boundary line of said McDowell Tract (1) north 50 30' 30" west, 198.55 feet; (2) north 80 22' 30" west, 867.94 feet to the northeast.- corner of said McDowell Tract and the southeast corner of a tract of land conveyed from Sam Evans, et al to John W. Porter Auto Sales Inc., by a deed dated August 23, 1971 and recorded in Volume 627, Page 539 of the ORDCT for corner; THENCE northerly the following 7 courses and distances along the centerline of said Elm Fork continuing along the west boundary line of said McCallum Tract and the east boundary line ; of said John Porter Auto Sales Inc. Tract, (1) north 140 3' 30" east, 230.9 feet; (2) north 470 55' 30.0' east, 142.3 feet; (3) north 650 17' east, 260.3 feet; (4) north 170 18' 30" east, 285.3 feet; (5) north 120 2' west, 309.8 feet; (6) north 70 39' west, 357.9 feet; (7) north 200 20' 15" west, 33 feet to the northeast corner of the remainder of the John W. Porter Auto Sales Inc. Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc, to Mike Ramos by a deed dated September 10, 1984 and recorded in Volume 15301 Page 151 of the DRDCT for corner; THENCE northwesterly the following 2 courses and distances along the centerline of said Elm Fork along the west boundary line of said McCallum Tract and the east boundary line of said Ramos Tract, (1) north 200 20' 15" west, 27.8 feet; (2) north 180 7' west, 252.0 feet to the northeast corner of said Ramos Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Susan Porter by a deed dated September 10, 1984 and recorded in Volume 1530, Page 147 of the OROCT for corner; THENCE north 180 07' west along the west boundary line of said McCallum Tract and the east boundary line of said Susan Porter Tract a distance of 317.75 feet to the northeast corner of said Susan Porter Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to John R. Porter by a deed dated Se tember 10, 1984 and recorded in Volume 1523, Page 505 of the DUCT fur corner; i I + i~ f THENCE northwesterly the following 3 courses and distances along the centerline of said Elm Fork, same being the west boundary line of said McCallum Tract and the east boundary line of said John R. Porter Tract, (1) north 180 7' west, 13.05 feet; (2) north 170 49' 30" west passing the northwest corner of said McCallum and the southwest corner of a tract conveyed from Charles W. McCallum and wife Winnye S. McCallum to the United States of America by a deed dated November 18, 1981 and { record a etotal Ydistancel oaf P245.5 5 feet; t(3)ORno than2000191, nu30n west, 50.98 feet to the northeast corner of said John R. Porter Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Vaughn Andrus by a deed dated September 10, 1984 and recorded in Volume 1523, Page 501 of the OROCT for corner; THENCE north 200 19' 30" west along the centerline of said -1 Elm Fork, same being the west boundary line of said McCallum to USA Tract and the east boundary line of said Vaughn Andrus Tract a distance of 343.12 feet to the northeast corner of said Andrus Tract and the southeast corner of a tract conveyed from John W. Porter Auto Sales, Inc. to Ann Andrus by a deed dated September 10, 1984 and recorded in volume 1523, Page-613 of the DADCT for corner; THENCE north 200 19' 30" west along the centerline of said Elm Fork, some being the west boundary line of said USA Tract and the east boundary line of said Ann Andrus Tract a distance of 377.33 feet to the northeast corner of said Ann Andrus and the southeast corner of a tract conveyed from John M: Porter Auto Sales, Inc. to Betty Cochran by a deed dated September 10, 1984 and recorded in Volume 1523, Page 517 of the DRDCT; THENCE northwesterly the following 2 ci,urses and distances along the centerline of said Elm Fork, same being the west b boundary oundary line of said McCallum to USA Tract and the east west, 202187efeet; s (2) north a 270x43' 30' )west north 200 19' feet 3to the northeast corner of said Cochran Tract and the southeast# corner of a tract conveyed from Jo Ann Burger to the United States of America by a deed dated October S. 1981 and recorded in Volume 1107, Page 209 of the DRDCT for corner; THENCE northwesterly along the center of said Elm Fork same being the west boundary line of said McCallum to USA Tract and the east boundary line of said Burger to USA Tract a distance of 868 feet to the northwest corner of said McCallum to USA - Tract and the northeast corner of said Burger to USA Tract, r said point also lying in the north boundary line of said Tansey a survey and south boundary line of said S.A. 8 M.G. R.R. Survey, also being the southwest corner of Tract 216-1 as conveyed from William E. Campbell Jr., et al to t<<e United States of America by a deed dated April 12, 1982 and recorded in Volume 1136, Page 801 of the DRDCT and the southeast corner of Tract No. 213 as conveyed from John W. Porter of al to the United States of America by a deed dated August 24, 1981 and recorded in volume 1096, Page 787 of the DRDCT for corner; I I s E f f M THENCE northwesterly along the centerline of said Elm Fork same being the west boundary line of said Campbell to USA Tract and the East boundary line of said Porter to USA Tract a distance of 2,678 feet to an angle point in the west boundary line of said Campbell to USA Tract and the east boundary line of said Porter to USA Tract, said point also lying in the west boundary line of said S.A. 6 M.G. R.R. Survey and the east boundary line of the W. Cox Survey, Abst. No. 291 for the Point of Termination. r I f ' I l ~ j i i i I ~ I-LIA tit l I I I I1 1 tA ICJ. 2620L RESOL UT10N NO. A RESOLUTION SUPPORTING THE REINSTITUTION OF PASSENGER RAIL SERVICE AND FROVIDING FOR AN EFFECTIVE DATE. WHEREAS, railway passenger service is essential for the travel needs of the citizens of Denton, Texas; and WHEREAS, the railroad cracks to provide such service are available at the nearby community of Sanger, Texas and could be utilized to provide passenger service and connections with AMTRAK's national railroad network to the people of the City of Denton, Texas, and surrounding areas; and WHEREAS, the economy of this region would be greatly enhanced by the reinstitution of passenger rail service through Denton County and would serve the educational and industrial needs of f this part of the North Texas region; NOW, THEREFORE, 1 E BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That the City Council of the City of, Dr:nton supports the reinstitution of passenger rail service. i SECTION II. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _ day of , 1989. j RA3 STEPHENS, MA OR f I ATTEST: JENN FIX WALTERS,-CITY SECRETARY I APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY f BY: lYY1 nA., v r *IAdo 11 1 t Its C. • _ , a ...L i .w~W MuNICIPAI. !UJLOINO CITY OF PONCA CITY, OKLAHOMA 74601 September 19, 1988 Mr. Roger E. Carter, President Oklahoma Passenger Rail Association 1120 S. 21st St. Chickasha, OK 73018 Dear Mr. Carters PlAase find enclosed a Resolution unanimously adopted by the Board of Mayor and Commissioners of Ponca City, Oklahoma, indicating our strong support for reinstituting passenger rail service through Oklahoma. service willl beefit our a citizens, large s segment believe of our passenger rail by providing alternative economical travel, population, Your consideration of this plan, and your support, i is respectfully requested. 1 Sin rely, A&4110 Carl Balcer, Mayor City of Ponca City Enclosure I 1 I f o~ P ~cq I i i r f, F RESOLUTION NO. 4217 A RESOLUTION REQUESTING REINSTITUTION OF AMTRAC SERVICE TO THE CITY OF PONCA CITY WHEREAS, rallway passenyur service is essential to provide for the travel needs of Lhe citizens of Ponca City, and WHEREAS, Lhe railroad Lrocks Lo provide such service urv available and could hr unlined to provide passenger service: Ln the people Of the CILy of Ponca City and surrounding arvu allowing the people of thlu arva to mokr connections wiLh Amk "c throughout the nation; NOW, iNIEREFORE, DE IT RESOLVED BY THE BOARD OF j COMMISSIONERS OF THE CITY OF PONCA CITY, OKLAHOMA: i f Section 1. Raquusting reinstitution of Amtrac servicv to the City o-tPonca city on existing rail lines so as to provide passenger service to the City of Ponca City and surrounding area; Section 2. All persons, firma or corporations having any authority to assist in the obtaining of Amtrac service to Lhe City of Ponca City is hereby urged to lend their support to Lhe obtaining of the same. PASSED and APPROVED this 12th day of September, 1188. i PON _ ATTEST! City Clerk r I f I r ` Oklahoma City Chamber of Commerce One Santa Fe Plaza Oklahoma Cih•, OK 73102 . SOS-:'8.8900 November 6 J 1988 ]I Mr. Graham Claytor, Jr, President Na•.fonel Railroad Passenger Corporation 400 North Capitol Street, N.W. Washington, D.C. 20001 Dear Mr. Claytor; RE: OKLA. RAIL PASSENGER SERVICE 1 Last November 15th,:a tri-weekly Passenger commenced service between.Houston andDallas;tTexae,~Texas Eagle) W respectfully request that this service from Amtrak seriously. consider Dallas throu extending Southwest, Chief,in`Newton, Kansh as ;Oklahoma to connect with the Oklahomana'ware:etio s to years taga;of Amtrak' was discontinued almost ten• years ago a Lone l I ~ time without rail , leaving our state. Star for the which first f passenger service. To further.save costa, we would suggest that only J ` stops in Oklahoma be looked at - Ardmore the following 1 r and Ponca City. Norman, Oklahoma City Oklahoma city was the number one destination point on the Old Lone I Star Route after removing Chicago and Houston. Next year Oklahoma' City, celebrates it's 100th Birthday,, 1 thousands of visitors are expected to visit our state. There and no doubt that the introduction of rail re is Oklahoma would certainly be sielcomed and suPPpported. Thank y into Si arely, you. Aft/ Dean.Schirf, Director Government Relations Division Dsicm 4 cc: Senator David Boren Senator n Nickles Rep' Mickey Edwards Rep. Dave McCurdy Rep. Wes Watkins i Buildino Toward oc it renfennial. laRc) J a i ALL2r--- MIDwES'I` TRAVEL SERVICE ~ VI A HOWAID RD 1. TH7N00.NTON, DIRECTOR rrlJllf..l~~rr 1916 fella Villa Drive O 112.0566 (/OS) Mid+eel Ciry, OUahome, 71110 BnAR AMTRAK Dear Loyds As you requested, here is something you might use as a 'basis for your resolution--would suggest you add your added ideas. You might send it to the following--all in Washington: W. Graham Claytor, Jr, President James Larsen, Vice-President, Operations I j Robert Gall, Director of Marketing rr William S. Norman, Director of Salea<Bruce Beard, Public Relation All these to 400 North Capitol St, NW, Washington, DC, 20001 ALSO Charles Luna, 6826 Vivian, Dallas, Tx, 75223 John Payne, AMTRAK, 400 South Houston, Dallas, Tx, 75202 Brad Kramer, 1114 Yabrique, Wichita, KS, 67218 Dr. M. D. Monahan, Box 4606090 Garland, TX, 75046 C John Mills, 2825 Burnett Rd, Topeka, KS, 66614 j Push hard in every possible way--be sure to send to US Senators { and,Representatives in your area. I 1 a I , We* of the Denton County, Texas, area of some 200,000 population in,:luding more than 30,000 students in two major Universities sincerely urge the restoration of the AMTRAK *TEXAS CAIEF• betwean Newton, Kansas, and Fort Worth, Texas, at the first opportunity, and sincerely pledge to do everything possible to encourage the maximum use of its services. i I i The City of SANGER, just a few miles north of Denton, would make ` an ideal stop for this populous North Texas area. I Should this popular train be restored we will make every avail- ' ' able effort to see that it is a success in every way. IM i f • r i h 1 PROPOSED SCHEDULES "TEXAS EAGLE" and "LONE STAR" rw') corniectinl; trains "from anywhere to anywhere" with no switching or „in TIDE TEXAS EACLE y„ SOUTHBOUND NORTHBOUND READ DOWN READ UP IN culcnc° 5:40 m 1•• St. Louis 12:30 am Ar 1:45 pm 1bn, cars to ()K, SAN ANf 6 (i1 Ar Little Rock IN 1:30 any Ar Dallas 1'41 am IN 11:32 am Ar Fort Worth 2'32 pm l.v 4:05 pm Across platform to Houston IN Fort Worth 4 1440 :05 pm !.v 2:55 pm Trains serviced here Lv Austin, TX 9:15 pm Ar 2:25 pm Cross platform to (kL-iknn Ar San Antunio,'fX 11:50 pm IN 9:50 am Lv Phoenix, AZ 10:30 pm Lv :20 am Joins SUNSET to AZ 6 CA Ar LOS ANGELES CA P IN 7 7:20 am 7:20 am IN 11:10 pm '11171, cars from NO, TX 6 Chicago IN CDICAGO Itif LONE STAR IN Kansas City 12:90 am Ar 3:15 pm lbru cars to OK, DALLAS 6 IK)ll -1 Lv Newton, KS IN 7:27 am llru cars to OK, TX, AZ b CA Ar Wichita, KS 5.00 am Lv 3:10 am Ar Ponca Cit OK 5:40 am Lv 1:45 am Ar Perry, OKY, 1:15 am IN 12:05 am Ar Guthrie, OK 7:45 any IN 11:30 pm 8 Ar OKIAIIOMA CETY :15 pm Lv 10:45 pm Ar Norman, OTY U 9:40 am Lv 10:00 pm Many events for Centennial AR Paul.. Valley--FI. 10:35 am IN 9:30 pm 220000OU students here Ar Ardmore, OK Lv 8:30 pm 11:25 am IN 1:30 pm Ar Gainesville, TX 12:30 pm L 6:30 m Ar SANGER OK--FLAG 12:50 pm l,v 6:10 pm Stop for Denton-2 colleges Ar Fort Worth 1:30 pm Lv 5:30 m Cross latform for SAN 6 A% L Fort Worth P P IN Dallas 1:50 pm Ar 5:10 pm Trains serviced here Ar Houston TX 3:00 pm Lv 3:40 pm Cross platform for S(I. 6 Chi 9 :00 Pm Lv 9:40 am 11 uv airs to CK KC, 8 OIIC/1(0 Note that these proposed schedules for the "TEXAS EAGLE" and "LONE STAR" connect both ways at Fort Worth and Dallas--making possible to go "anywhere from anywhere". Also the ont required for either train would be dividing it and "LONE STAR" at Newton--no only switching train en route. "Y"ing wouldbeherequ0{red Eon eilther 1989 would be a fine extension of the "Se year to reinstate the "LANE STAR" as an income 11WE5T C111FF' (which could use additional since OKIAl10w, will be celebrating will feature many its CENTENNIAL which large Conventions as well as the OLYMPIC FESTIVAL and the NATIONAL SQUARE DANCE CONVENTION. SANTA FE tracks arc in excellent shape and many stations used, could still be OKl11116MA for the past 10 years has been contributing. approxi- mately $6 million a year for other states to have trns--while it has none. Roth the recent Dallas to Houston, and Savannah to Jacksonville trains were paid fully by AMTRAK, and the same should be true for a reestablished LONE STAR". The above has been prepared b HOWARD Midwest City OK 73110--phone 405-732-0566~N1'OYo'ur 93x6 Reti la Vista, assistance w(,uld hr appreciale,l. gJ lions and L/ T f I r1 1 IIIJF-IIIFIIJIIF [if It 14+1 I I I 1 r 1 I I l I i J I I I 4 I 1 I J w 9~, I L7) CITY of DENTON, TEXAS _MUN10PAL BUJLDWO / DENTON, TEXAS 78201 /TELEPHONE (W) 7) 566.8307 M E M 0 R A N D U My Office of the City Manager TO: Lloyd V. Harrell, City Manager FROM: Rick Svehla, Deputy City Manager DATE: January 12, 1909 i SUBJECT: Resolution on Alliance Airport E Last night, members of the Perot Group appeared before the Airport Board to ask for a resolution iii support of Alliance Airport. The Perot. Group provided information to the Board on the proposed 1400 foot runway extension to the north. The staff indicated that while there wasn't any problem with the actual extension and we think it will help air traffic in general in the area, there was some concern about Denton's air space. The suggestion was made that the resolution be recommended to the Council with the caveat that assurances from the FAA would be given that would preserve all of our air rights including those that would be needed with a 1,000 foot extension of our runway to the south. After more discussion, the Board felt that those assurances from the FAA should be received before they could make a recommendation to the Council, and therefore, declined to recommend any kind of provisional resolution until those assurances had been received. Because of the Perot Group's timing deadlines, they would still like to seek some sort of resolution from the Council. Attached to this background, you will find a resolution that endorses the extension to the Alliance Airport with the caveat that the endorsement is provisional pending notification from the FAA that all of our air space, including that needed for our future expansion, is protected and will be available for use by the city of Denton. i If you or the Council has any further questions, we would be happy t and respond to them, I i i Rick Svehla Deputy City Manager RS:bw 4398M t AIRPORT ADVISORY BOARD MINUTES DRAFT January 11, 1989 Page 2 J. Discuss Airport Manager's Report, (continued) 11. Freese b Nichols Consulting Engineers. Freese 6 Nichols Consulting Engineers were at-the Airport during the first week of January to inspect the drainage system and check other improvements the air- port will need within the next year. Freese d Nichols also pre- pared a narrative statement of coat estimate for the City of Denton to make the t.icessary improvements that will be needed for future development during 1990-1991. Freese 6 Nichols have been approved by the City Council to prepare Federal Preapplications for Denton Airport and fifteen different needed improvements will be turned in for the 1990-1991 grant funds. 4. Open Session for Public Comments, Jim Huff commended air Airport Board on their decision to table the proposed resolution to lengthen the Alli- ance Airport runway by 1400' until such time when the Airspace Studies by the Federal Aviation Administration have been completed. With no further business to discuss the meeting was adjourned at 6:15 P.M. . 11:E NEXT SCHEDULED MEETING WILL BE FEBRUARY a, 089 AT 5:30 P.M. IN THE AIRPORT TERMINAL BUILDING. ~I i f i f tA 2614L RESOLUTION NO. A RESOLUTION SUPPORTING THE EXTENSION AND THE INSTRUMENT 1 LANDING SYSTEM (ILS) AT THE FORT WORTH ALLIANCE AIRPORT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the FAA and City of Fort Worth propose to extend the runway at Fort Worth Alliance Airport (the "Airport") 1,400 feet to the north (the "Extension"); and WHEREAS, the Extension will allow heavier aircraft to utilize the Airport by changing the runway length from 8,200 € feet to: I Takeoff on runway 16: 9,600 feet Landing on runway 16: 8,200 feet Takeoff on runway 34: 9,600 feet Landing on runway 34: 9,600 feet , WHEREAS, the City of Fort Worth proposes to install an instrument landing system (the "ILS") that will serve aircraft approaching the Airport from the south; and I WHEREAS, the Extension and the ILS will further enhance the capability of the airport to serve the general public and the industries in the surrounding metropolitan area; and WHEREAS, the Extension and the ILS will increase safety, efficiency, and reliability at the Airport; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That the Extension and the ILS at the Airport, will enhance the capability of the Airport to serve the I citizens of the City of Denton and the general public. SECTION II. That it is in the best interest of the citizens o the City of Denton to support the Extension and the E ILS at the Airport with the understanding that this support is conditional upon receiving written documentation from the FAA that all of the Denton airport's airspace, including any expansions, will not be adversely affected now or in the future. i k •i Y Z PASSED AND APPROVED this the day of January, 1989. UY STEPHEMT,AYOR i ATTEST: JENNIFER QALTERSj CITY SECRETMY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY 1 V' 1 f BY: i [ /1 l 1 'IF 'if+14141414141''1!11iijliii-ilfmiigI 7++j 1 f 44 ~I i i i i i i I I I III` a f E k 2622L RESOLUTION NO. A RESOLUTION SUPPORTING THE ESTABLISHMENT OF A JONES FARM LIVING HISTORY CENTER AT JOHNSON BRANCH PARK ON RAY ROBERTS LAKE AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Texas Parks and Wildlife Department is currently considering the placement of a new "living history farm" at the Roy Jones Farm site on Ray Roberts Lake in Denton County, Texas; and WHEREAS, the development of this site as a "living history farm would have a positive economic impact on Denton, Cooke and Grayson counties by providing jobs and increasing tourism; and WHEREAS, the culture and history of north Texas are unique and worthy of preservation. The creation of a Jones Farm Living History Center would help to preserve and document the agricultural nature of our region's history so that those who follow us can learn about their past and profit from that knowledge; and I WHEREAS, with an increasing emphasis on the study of state and local history in our schools and a lack of living history farms in our area, the establishment of a Jones Farm Living Center would be of great benefit to the 56,000 public school children in Denton, Cooke and Grayson counties; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That the City Council of the City of Denton, texas unan mousl7 and wholeheartedly lends it support to the creation of a living history farm" at the Jones homestead, Johnson Branch Park in north Denton County. SECTION II. That this resolution shall become effective imme ate y upon its passage and approval. PASSED AND APPROVED this the day of 1989. 4 I ~ t j i i, REIY3"i'EgF~ty , l .--...I 17, f M `R} d ~ F L t r b 1 RAND= BO D, CO CI HER JANE P , MAYOR PROT II B GORTON, COUNCILMEMBER HUGH , COUNCILMENBER JIM R. ALEXANDER, COUN-CILMEMB EM , COUNCILMEMBER ATTEST: JENNIFER WALTERS, CITY S APPROVED AS TO LEGAL FORM: 1 DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY i BY: r~ Q• J1M? I ~ i PAGE 2 1 i T Betty McKean Executive Director for r1! } Municipal Servvices pd. Economic Development ..r .a CfTYofDENTON,TEXAS MUNICIPAL BUILDING / DENTON, TEXAS76101 / TELEPNONE481)1566.8200 MEMORANDUM DATE: November 20, 1988 FROM: Mike Cochran, Chairman Historic Landmark Commission SUBJECT: Meeting with representatives of the Texas Parks & Wildlife Department, the Amry Corps of Engineers and interested local offkials concerning &..e Historic Jones Farm at Ray 1 Roberts Lake. the Historic Landmark Commission of the City of Denton and various historical organizations of Cooke County have scheduled a meeting with I representatives from the Texas Parks & Wildlife Department and the Army Corps of + Engineers conceming the fate of the Historic Jones Farm at Ray Roberts Lake, This f meeting is scheduled for 9:00 am, November 30. 1988 at the Mountain Springs Com- munity Center. ISee mapl j The purpose of this meeting is to gather information from state officials about the possibilities of the Jones Farm as a state operated Lving history park and to demonstrate to these officials the degree of local community support for the Jones Farm facility, After coffee and discussion there willbe a brief tour of the Jones Farm site. Hope to see you there, dam V Mice Cochran, ChaLr=n HLC Map Attached i i I 1 1 1 _J tc.~' i,Y~l i.•y E. •i ~~L. T7~V~4 ~f~ tr ~u. I\'~ S' , COILLIN • rJ. J. 1~ y `t FJ,fir -~~y/ . . 1 t,~ ft VA1tEY VIEW` a' 15 1 rr rF , _ Mn~N At+ ~ I \1,~•, ~ ;fir. 1 1.. . TIOGA I. II , { .I FEC IN l yf r,.., 1 ' .1~ CREEK • 1 R4RR l('I 5st J ! a ICC 1 _ BRANCH, I.._ R L ~ - • imr r BUCK CREEr f. . r s: P' Ef t., _ ( y •~•I I~yr .J' JO AN RARR f h- Y LOT POINT r R qN) CRri E ArCESS APE4 1 :"u•'~ y SANG R i - Hft'IWAr L}}`AEA:. ` tr SLE d 6 E 015 PnRR. I CVIR SPANCH PARK waif L 4- ,ri MITI -~~•.1.. ~r ~~^v,..._.. ~ I J ^ •y rry _ k'', I ! 1. r~ AUBREY / t! I i I i I i i I i i i 1 I F { r' ' y 2142L RESOLUTION NO. A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON INDEPENDENT SCHOOL DISTRICT FOR A JOINT ELECTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 271 of the Texas Election Code authorizes political subdivisions to conduct joint elections; and WHEREAS, the Board of Trustees of the Denton Independent School District have requested the City Council of the City of Denton to conduct its regular election to be held May 6, 1989, jointly with the School District election; and WHEREAS the Cit Council, having given due deliberation to the proposal for a 10int election, is of the opinion that such joint election could adequately and conveniently serve the voters of the City of Denton and facilitate the orderly conduct of such elections; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS: . j SECTION I. That the Mayor is hereby authorized to execute an agreement between the City and the Denton Independent School Dis- trict providing for the joint conduct of the May 6, 1989 regular municipal election and the regular election for trustees of the Denton Independent School District, a copy of such agreement being attached hereto and incorporated by reference herein. SECTION II. That this resolution shall take effect and be in full force immediately upon its passage and approval. PASSED AND APPROVED this the day of , 1988. SEPE , RATOR ATTEST: ~I JENNIFER WALTERSO CITY SECRETARY APPROVED 6S TO LEGAL FORM; DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY t BY: ~~(~l1 VV.J { t s I i 2142L r THE STATE OF TEXAS § JOINT ELECTION AGREEMENT BETWEEN THE CITY OF DENTON AND THE COUNTY OF DENTON § DENTON INDEPENDENT SCHOOL DISTRICT WHEREAS, the City of Denton, Texas ("Cit•,") will hold an election for City Council Members on Saturday, the 6th day of May, 1989; and WHEREAS, the Denton Independent School District ("District") will also hold an election for school trustees on Saturday, the 6th day of May, 1989; and WHEREAS, pursuant to Section 271.002 of the Election Code, the City and the District desire to enter into an agreement to hold their elections jointly in the election districts that can be served by common polling places; NOW THEREFORE, The City and the District do hereby agree as follows: 1. POLLING PLACES The parties agree to hold their elections jointly in the election precincts that can be served by common polling places. Absentee voting shall be conducted for both entities by City officials at the Denton City Hall, 215 East McKinney, Denton, Texas. District polling places shall coincide with City polling li places. The Election Districts and their respective polling places shall be as follows: s A. District One shall include the following County election precincts and those voters reuiding within the following listed precincts shall vote at the Martin Luther King, Jr. Recreation Center, 1329 Morse Street, Denton, Texas: 1. That portion of Precinct No. 1-K lying north of McKinney Street, East and South of Mingo Road, West of Mockingbird Lane and North and Northwest of Audra Lane. 2. All of Precinct 1-S in the City of Denton. 3. All of Precinct 1-V. 4. That portion of Precinct 1-D lying North of Interstate Highway I-35 East. 5. That portion of Precinct 1-J lying North of Interstate Highway I-35 East. I I I I I f 6. All of Precinct 4-L except that portion of Precinct 4-L lying south of F.agle Drive and West of Bernard Street. 7. That portion of Precinct 4-G lying East of Avenue E and North of Eagle Drive. B. District Two shall include the following County election precincts and those voters residing within the following listed precincts shall vote at Fire Station No. 4, 2110 Sherman Drive, Denton, Texas: 1. All of Precinct No. 4-H in the City of Denton. 2. All of Precinct 4-N in the City of Denton. 3. All of Precinct 1-E in the City of Denton. 4. All of Precinct 1-H in the City of Denton. 5. All of Precinct 1-L in the City of Denton. f 6. All of Precinct l-G in the City of Denton. 7. That portion of Precinct 1-K lying East and South of j Audra Lane and lying North of Mingo Road. 8. All of Precinct 4-M in the City of Denton. 9. All of Precinct 1-C in the City of Denton. C. District Three shall include the following County election precincts and those voters residing within the following listed precincts shall vote at the North Lakes Recreation Center, 2001 W. Windsor, Denton, Texas: 1. All of Precinct No. 1-M in the City of Denton. 2. All of Precinct 4-K in the City of Denton. 3. All of Precinct 44 in the City of Denton. 4. All of Precinct 4-F in the City of Denton. 5. All of Precinct 4-E in the City of Denton. 6. All of Precinct 4-D in the City of Denton. D. District Four shall include the following County election precincts and those voters residing within the following listed I PAGE 2 M . i ' $A i 7 precincts shall vote at the Denia Park Recreation Center, 1001 Parvin, Denton, Texas: 1. All of Precinct No, 3-F in the City of Denton. 2. All of Precinct 3-E in the City of Denton. 3. That portion of Precinct 1-J lying South of Interstate Highway I-35 East in the City of Denton. 4. That portion of Precinct 1-D lying South of Interstate Highway I-35 East in the City of Denton. 5. All of Precinct 4-G, except that portion of 4-G lying j r south of West Oak Street, East of Avenue E and North of Eagle Drive. 6. That portion of Precinct 4-L lying South of Eagle Drive, West of Bernard Street, East of Avenue C. and j North of Interstate Highway I-35 East. 7. All of Precinct 1-R in the City of Denton, Texas. E. The voting precincts located within the boundaries of the 1 Denton Independent School District and not within the city limits and their respective polling places are hereby designated as follows: 1. Precincts 1R, 3B, 3D, and 3G - Denia Recreation Center. 2. Precincts 1B, 1C, 2M, 4M an~ji 4N - Firestation No. 4, Sherman Drive. C/I: II. BALLOTS At each polling place a single ballot form shall be used which will show all the offices to be voted on in the elections of both parties at that polling place; provided, however, that no voter shall be provided a ballot containing any office on which the voter is ineligible to vote. In such cases, soparate ballots will be provided to voters residing in areas where boundaries are not coextensive. The City Secretary of the City shall prepare the ballot for the joint election for both parties, and shall cause to be printed and prepared the cards, inserts and other printed material necessary to set the ballot on the voting machines, and shall cause to be listed the names of the candidates for Trustees of PAGE 3 i ~I ri 1 1 i the Board of Trustees of the District, said list and designation to be separate and apart from the listing of the candidates for ~ City Council of the City, which shall also be listed on the ballot. The City Secretary shall furnish a separate set of tally sheets and return forms for use by the presiding officers in the various precincts, so that the results of the election of Trustees of the District shall be returned on a separate tally sheet, placed in a separate envelope, sealed and so designated, and like- wise, the returns made by the presiding officers of the election for City Council of City shall be separately returned on separate tally sheets and in separate envelopes, sealed and designated. All tally sheets and returns for the election of Trustees for the District shall be delivered directly to the Secretary of the Board of Trustees of the District or other chief election official of said District. All tabulations of the results of the election for Trustees of the Board of Trustees of the District shall be conducted by the Judge of the central counting station. After completion thereof, all such tabulations, tally sheets and returns related to the election of the Trustees of the Board of Trustees of said District and said Board will assemble such tabulations, and make the official canvass of the election and the final declaration of the results thereof. III. ELECTION OFFICERS One set of election officers shall be appointed by the City to conduct the joint election, and any person who is qualified to serve as an election officer in the election of either one of the parties may be appointed to serve in the joint election. The J election officers shall be named and specified in the ordinance or resolution of each party calling such election. shall prepare its election order and forward a copy The Distrct of same ito the attention of the City Attorney, 215 East McKinney, Denton, Texas 76201 not later than seven (7) days prior to the meeting at which the election is to be ordered. I IV. RECORDS All be combinedrecords anypertaining coto the nvenient election adequate parties shall and report the results of each election. Returns shall be made to, and the canvass made by the governing board of each of the parties. The officer designated by law to be the Custodian of the Records for the City is hereby designated as the Custodian of the Combined Records. i I PAGE 4 I I r Y a6 a V. EXPENSE The reasonable and necessary expense of holding said joint election will be paid by the City, except that one-half (1/2) of the expense shall be paid to the City by the District upon receipt of satisfactory billing and invoices reflecting the total of such expense. This expense shall include the hiring of a part-time clerk to assist the City Secretary with her duties while the election process is in effect. This agreement shall not apply to run-off elections or bond elections held by either party. VI. FILING It is understood and agreed that candidates shall file in the appropriate jurisdiction as provided by the Election Code. VII. EFFECTIVE DATE This agreement shall become effective upon the adoption by the governing body of each of the parties of a resolution approving I~ this Agreement and shall be effective each successive year there- after until terminated in writing by either party; provided how- ever, in tho event that either party shall forego a joint election despite being eligible to participate pursuant to Section 271.002, Vernon 's Texas Election Code, that party shall notify the other party at least ninety (90) days prior to the election date. A resolution incorporating the terms of this Agreement has been adopted by tho City Council of the City and the Board of Trustees of the District, and in accordance with Section 271.002, Vernon's Texas Election Code, executed the same in duplicate originals pursuant to their authority on the day of 1989. CITY OF DENTON, TEXAS BY: RAY STEPHEWS0 MAYOR ATTEST: ~ I JERRIFER WALTERSj CITY SECRETARY PAGE 5 E II f A 1 f APPROVED AS TO FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY A BY: I ' BOARD OF TRUSTEES, DENTON INDEPENDENT SCHOOL DISTRICT BY: BETTYE E ~ ATTEST: I APPROVED AS TO FORM; ATTORNEY FOR BOARD OF TRUSTEES DENTON INDEPENDENT SCHOOL DISTRICT i BY. I I I 1 PACE C 3 1 I Ai-Li I I I 1 I -4 1 1- VT7TT F F CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 666-6307 Office of the City Manager M E. M 0 R A N L) U M j To; Lloyd V. Harrell, City Manager FROM: Rick Svehla, Deputy City Manager j DATE: January 12, 1989 { SUBJECT: Expansion of our FM Radio Tower Proposed by KJZY-FM 99.1 At the Airport board meeting last night, the Board reviewed the request of KJZY to increase the height of their tower. We have f had some information forwarded to us from the Texas Aeronautics Commission suggesting that there would be a problem associated with this increase and the proposed tower expansion. The Board did consider this item, and felt it was essential that the air space at the Airport be protected. Therefore, the Airport Board recommended to the Council that the City ask that the extension not be granted and notify the FAA of their wishes. If you or the Council has further questions, I would be happy to try to respond to them, I Rick rv4hl------------ Deputy City Manager j RS; f 4399M 9M i I I I J V i J aicllc McAr tL w, l kel'hauman ; L.A. twy) h ua,w Skphen E. Cone, It, Secretary pnecudrI Dbeclof Warren C. Harmon, Member ~j P.O. Bat 19607 Mel PhWlpa, Jr, Member / 410 Fiat Fifth Street Walter Umphrey, Member Awtie,Tcxu 71711 ti~ (519)476.9369 `Texas aeronautics Commissioq January 4, 1549 Mr. Lloyd Y. Harrell City Manager City of Denton 215 E. McKinney Street Denton, Texas 76201 Dear Mr. Harrell: The 43 feet increase to the existing FM radio tower proposed by Mr. Bill Mercer, KJZY-FM 99.1 MHz, P.O. Box 931, Denton, Texas, in the enclosed FM Aeronautical Study No. 08-ASW-1955-OE viil violate the provisions of the Denton Municipal Airport Hazard Zoning Ordinance. The proposed structure would also increase the minimum descent altitude for the 1LS Runway 17 circling approach procedure for Category C aircraft from 1,100 feet to 1,140 feet. 4 The dexas Aeronautics Commission suggests that the City of Denton contact Mr. Mercer and advise him of the problems associated with the proposed increase in the antenna height and take the necessary actions to protect the Denton Municipal Airport permitted by the Denton Municipal Airport Zoning Ordinance. If you have any questions, please do not hesitate to contact us, Sincerely, Z C. ns, Coordinator Special Projects Enclosure I cc: Mr, Joe Thompson, Airport Manager, Denton Municipal Airport i w/enclosure I i US Demimeru r, xinvasirxTo ofDonsportauon Southwest Region AERONAUTICAL STUDY FederalAvlotion Airspace and Procedures Branch No, 88-ASH-1955-OE lldminisImMn Fort Worth, Texas 76193-0530 AERONAUTICAL STUDY OF PROPOSED CONSTRUCTION OR ALTERATION CONSTRUCTION LOCATION BILL MERCER Pacsw"u KJZY - FN 99,1 MHZ P 0 BOX 931 Denton, Texas DENTON TX 76202 tATIruDe LO Wfuoe 33'13'45" 97810130" CONSTRUCTION Descx PT,O., we4nl IN ruTi PROPOSED 43-foot increase to existing tower xe0vs GAWW 1 xeoVe►W 150 835 ! A notice has been filed with the Federal Avist on Administration that the above described structure is proposed for Construction. As proposed the structure would exceed the stanoards of Subpan C of part 77 VIM Federal Avistion Regulations and would be Identified as an obstruction to air navigation. Accordingly, the FAA Is conducting an aeronautical study of t% proposal to determine its effect upon the safe and efficient use of the navigable airspace by aircraft and on the operation of sir navigation ` facilities. t In the study. consideration will be given to all facts relevant to the effect of the proposal On existPag and planned airspace use; sir navigation facilities; tirpons; aircraft operations, procedures and minimum flight altitudes; and the air lraffiC Control system. However, only those plans on file with the FAA, on the date the notice concerning the above described proposed construction was received, will be considered. Interested persons are invited to panicipate in the aeronautical study by submitting comment: to the FAA office issuing INs notice. To be eligible for consideration, comments must be relevant to the effect the proposed consvw0on would haw on aviation, provide sufficient detail to permit & Vier understanding, and be received on or Delve -January 16. 1989 Please refer to the aeronautical study number printed A the upper right hand Cornar of this nobce. This notice may be reproduced and recirculated by any interested person. ATTACHMENT - See Reverse Page ( ) Proposal reviewed and comments stated in separate letter. ( ) Proposal reviewed and no comments submitted. Signature and Title Date i , i Representing s"so K r,eth L. Flelech[re ii( ser Airspace Speolalist, ASW-536 ssvs0 . Fort Worth, Texas a December 16, 1988 AIRPORT MANAGERS - PLEASE POST COMMENTS INVITED FAAfwm14 I14 uyvHmsiDisppioov.Ivt,vN SW OP-1 (6/87) Previous Edition Obsolete I 1 d-~ t p~l... 'O-_IL I I L.. .1N l l'A !•r'-x0 v ,.{.-v AERONAUTICAL STUDY NO 88-ASV-1955-OE DENTON, TEXAS The proposed construction would be located approximately 1.65 nautical miles (NM) northeast of the Denton Municipal Airportr Dento•, Texas. It would exceed the obstruction standards of Part 77 of the Federal Aviation Regulations, as follows: Section 77.23(x)(3) by 35 feet - a height that increases a minimum instrument flight altitude within a terminal area (TERP's criteria). The proposal would necessitate an increase in the ILS Runway 17 Circling for Category C aircraft from 1,100 feet to r 1,140 feet AMSL. - Section 77.23(a)(5) by 43 feet - a height exceeding a horizontal surface as ~ applied to the Denton Municipal Airport. 111kD0A pill I V f ,1000) .A, f!0. 11 V . ~ ~~Ml~•) ~ x,71 ~ A Op ' ! I!! I 01 •A K a N NTRO 1R. 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ON !12.5 rw ,r A I✓ - + j f y S5- I p fn1J ~ I 11 11 Ckklfit d1 ~ 1 lo' - o usslN A N A S I ,1 t1 ! f17 vA t r 8 J , IN 14541 1!u NNE 1n+ R I OIM M IrA A Ifi MI 4 A t.Anlr^I Ar y y' L R rNAMA A R / L r A nrD.Jvr, 13.1. 1• ,.r 8 lit, to ; vklN rvnlow UN V kyl r' prw~NlM A• . IM IOup !p 9 A .r 1 1 Hit ~ A fJO ~ 50C R rTlrAIN t 11 r9} I r 1_,r.,l IIGgNAk \ ,k 1! 15w 1 I~'L, 1 \ eS 1, 1 R t_ u e Q S Aq~ All R N «I JJJ p 1 L l k I 1~ 1171 '1 4 ' ~ A ~f 1 t l 7,4 ' M ( All IT All III A~ Sn iei e.J ,p IJ A 1Ai vi 1 r~ y a •r5 % ~ -A 1. rw 1 . Y, a 1 rr II r~~ ~1 °11 ~ 1 A f 1/ r tSfL T r u ~ A J I t t kl I stt Jy It . a0N . • _ 0 ATTACHMENT NC 4, IIIR . C - 1J I~ ,.np1 nC~µyr , V Ii gill [I lit] I VTT-F I i ~ i rT- , I~ Wax E 14 ■ OPMM lM { 1 CITY of DENTON, TEXAS MUNICIPAL BUILDING ! DENTON, TEXAS 76201 / TELEPHONE (817) 566.8200 MEMORANDUM DATE: December 13, 1989 I ~ { T0: Lloyd V. Harrell, City Manager FROM: John F. McGrane, Executive Director of Finance SUBJECT: DECEMBER BUDGET REPORT i Total General Fund revenues are ahead of last year. The first i quarter of the 1989 fiscal year had a total of $11,644,280 in I recognized revenues. This compares to $10,843,497 for the same period last year. However, as a percent of total budget, both ' amounts were 471 for the sane fiscal period. The December sales tax receipts were as projected in the budget which, for the quarter, amounts to $11,400 over budgeted projection. This is an encouraging sign, it Indicates that the economy responsible for generating sales tax receipts is growing at a little over 61 rate for the first quarter. Ad valorem tax collections are right on target with last year. A total of $5,982,198 had been collected through December for the 1988 tax levy or 47.22% of the total tax levy. 1987 tax levy for the same period had total collections of $5,771,644 or 47.421 of the total levy. Delinquent tax collections year-to-date are ahead of last year. A total of $171,000 or 1.351 had been collected at the end of the December while only $1180000 or .971 had been collected at the same time last year. i i i ri R i i s Memo to Lloyd V. Harrell January 13, 1989 Page 2 s theyeaec sr alexp}endituresR and Total expenditures and $4 719r912. for first quarter total $ , encumbrances for the same period were $4,666,000. Although the total expenditures are ahead oftlast syears, the perctntyef budget Is well below that percent Last December 31 , ear, at the same 8 time, 73% of the budget was remainingaining. y i~ Overall, revenues are coming in as projected and expenditures are slightly below budgeted projections. If you have any questions regarding this, or need any additional information, please advise. n c rave 3 k JFM,- :af k 4141F t a t LJ I y I a i I j i e I s i 1 mil To 111 1 1 11 1 1 T7-.rT7-r--T-JJ-TJJ- -FT- I I I I I I I i P, f tl i. TEXAS 76201 TELEPHONE (877) 566-8200 CITY of DENTON, TEXAS MUNICIPAL BUILDING / DEN TON, MEMORANDUM DATE: January 13, 1989 TO: Lloyd V. Harrell, City Manager FROM: John F. McGrane, Executive Director of Finance SUBJECT: LONE STAR GAS RATE INCREASE E The purpose of this memorandum is to update you on the request for intervention into a lone Star Gas rate increase request. The City of Denton has been asked to intervene when Lone Star Gas requested $4.5 million perannum gate rate increase which is before the Railroa` Commission. The purpose of this proposed increase is to fund an energy partnership program. The filing is an effort by Lone Star to increase its gas rates by a maximum of $.035 per Mcf to cover the implementation of a gas equipment rebate program. I Is h my understanding that the Loan Star Gas Company is trying to establish a rebate program to promote gas heating and gas air conditioning. I discussion it with was D dicatedr thatm thee Ralaw ilr ad m Commissionr will Casstevens, review the request on Monday, January 23, 1989. Mr. Butler has also indicated to me 15 cities have intervened in the case so far. alMr. so Butler's included letter a f otm iJacktPous sfrom of Attached the case. a I copy have of Diversified Utility Consultants, Inc., that talks about the cost of intervention. Ile has advised us that if the City was to intervene the case, s has right to have lreasonable re the Railroad reimbursed by Lone Star Gas. Ele also indicates Commission does have the authority to combine all of the various it { city appeals into one, and that if the City was to intervene, would probably be combined with the other municipal groups. However, it should be noted that if the City does intervene, it cost of t intervention and would would have to front the reimbursed for reasonable expenses oncethecasewasdecided. only be i w Memo to Lloyd V. Harrell Page 2 e January 13, 1989 I will review this information with City council in order to determine future action. If you have any questions regardii;g this matter, please advise. .jo n c rane JFMcG:af Attachments 4138F i i i 1i 1 I G I ~ I i 1 J I A r i a 1 LAw orrncts BUTLER & CASSTEVENS DON R. BUTLER 515 BARTON OAK[ PLAZA TWO GRACE CAssTEvENS LOOP ONE AT ZILKER PARK EXIT TELEPHONE STEVEN A PORTER 1101 WOPAC EXPRESSWAY SOUTH 3174811 . AREA COD[ DIf G[OFFREY M. GAY AUSTIN. TEXAS 78748 January 10, 1989 TO: Participating Cities, GUD No. 7253 FROMi Don R. Butler RE: 1) Railroad Commission Action on January 9, 1989 2) Steering Committee Meeting in Dallas, Friday, January 13, 1989, 1:30 p.m. On January 9, 1989, the Railroad Commission again postponed action on Lone Star's requested $4.5 million per annum gate rate increase. The matter is supposed to be taken up again at 9:00 a.m., Monday, January 23, 1989. The reason stated for the delay ` was in order for the Commission to meet with the Public Utility I` Commission which was the same reason given for the prier delay on December 19, 1988. G Thus far, the Commission has failed to come to grips with the two real issues in the case. First, does the Commission rather than the Cities have original jurisdiction over these charges? Second, can the commission summarily grant a rate increase without notice, opportunity to participate or hearing? Another issue raised by several Cities concerns the need for the Commission to review Lone Star's rates for possible revision due to reduction in the federal income tax rate from 469 to 3460 reduced capital costs and questionable gas pricing practices. As many of you have probably read, the Public Utility Commission instituted a similar proceeding concerning Southwestern Bell this past week. Most other jurisdictions have already reduced rates or commenced the process in response to the federal income tax rate reduction. Ron Neiman, City Attorney of Lewisville, Chairman of the Steering Committee has called a meeting of the Steering Committee to be held in Dallas in Room 201 at the Dallas Love Field Terminal at 1:30 p.m. on January 13, 1989. Room 201 is the second floor conference room near the administrative offices at Love Field. k It can be reached by taking the elevator located just next to the main restaurant in the lobby. The City of Dallas has been l gracious enough to provide us with this meeting space, - 1 - i ~ i I s We need to take some fairly decisive action which might gain the Commission's attention and cause them to focus on the real issues in this case. Everyone Is welcome whether or not on the Steering Committee. Pardon the quick notice but time is short since we need to act next week. We will advise of any action. If you have any questions, please advise. I will be looking forward to seeing you in Dallas this Friday. I I~ I k i , I { i 2 - x U'N OEEiCE6 BUTLER & CASSTEVEfNS 777 DARTON OAKS PLAZA TWO TELEPHONE DOH R. BUTLER LOOP ONE AT ZILKER PARK EXIT 7774612 GRACE CASSTEVENS AREA CODE 612 601 MOPAL [nPR[isWAY SOUTH STEVEN A, PORTER AUSTIN, TE•As 78746 GEOrrREY M. GAY December 2, 1988 To: Interim Steering Committee Lone Star Gate Rate Case From: Don R. Dutler Re: Railroad Commission Gas Utilities Docket 7253, Lone star Gate Rate increase on October 20, 1988, Lone Star filed what it refers to as its Energy Partnership Tariff with the Railroad Commission. such tariff allows a charge of up to 3.5 cents/mcf per month to be added to the city gate rate for ultimate passthrough to residen- tial and commercial ratepayers. The city gate rate is the rate established by the Railroad . Commission governing the cost of gas between Lone Star's s transmission division and its distribution division. However, such additional charge, which could amount to a gate rate increase of $4.4 million per annum, is not for the cost of gas but to underwrite the Company's gas equipment purchase rebate program. Lone Star filed this case as a tariff for a new service rather than as a rate increase. The hearing examiner assigned recom- mended rejection of the proposed tariff as a tariff filing. See attached case summary, on 11ovember 14, 19881 the Railroad Commission signed the attached could filing until which suspended the order w ion by the Commission. The effectiveness matter up again as early as December 12, 1988. I agree with the Examiner's conclusion that this is a rate increase rather than a tariff filing for a new service, { Additionally, several other questions are raisedi 1. The proposed charge is not for the cost of gas between the Company's transmission division and distribution division but is a local.operating cost,o which is subject to Cities' original jurisdiction. I 2. Rates should not be set on a piecemeal'basis but instead should be established after looking at the i I J 1 i i K/ 9 A r I ` requirementsverall revenues, expenses and return i 3. Even if the rebate costs be paid Prcgram has merit should its program is a out cess of existing rates? If the through increasedcsales, It should pay for itself 4• While I have not investigated the data I possible that Lone Star's ' it Is quite j of many other utilitie because s at se rate, hould lbee the rates (a) the federal income tax rate hasebeen changed from 46 to 34 percent and (b) the cost of capital has decreased dramatica lompaoy's the last gate rate case in 1982. Y since 5• Appropriate notice to Cities and to ratepayers has f not been given as required for a rate increase, 6. General information which indicates that we have received priced natural Lgas one Star is diverting its lower while charging regularo cularge stomers,d both l businessmand Commerciale for its higher priced gas This is being done through a system of subsid may ' I raise the question of iaries and I 1 which should an unreasonable reference I i Commission's att3nt brought to the pr Railroad ion, Attached is a form intervention which you ma { use. If you use the form at all, you may Y or may not wish to + { the contentions. Also, I have been asked tosh to elete some of some cities and can file for any city which so desires, event, this form should be reviewed b standby to file for Attorney, Y each Cities' In any own City If you have any further questions please advise. J II 2 I - I I I i V 1988 L V C1 I?IVh:lZS1F11a) U'i'11.1'i'1 CONSULTANTS. INC. r 7FI00 911,OAF. CREXK 111A 1). 1Sl1I IF, 1240 SO UT 11. AUSIAN, TX 79757 iY • ^ 7'PII.F,1'1IdNFSl Y4'14:mo 1 December 20, 1988 DEC 7,988 Mr. Lloyd Harrell rnr of F`ru- 1 City Manager Lyh MANACFFS OFFICE 215 E. McKinney Denton, TX 76201 subject: one tar Gate Hate Case Dear Mr. Harrell: In accordance with your request I am providing you with information pertaining to the role the City of Denton may want to take in dealing with Lone Star Gas Company's Gate Rate filing before the Railroad Commission. J First of all, at the Railroad Commission's meeting on Monday, December 19, 1988, the 1 Commission voted again to postpone any decision regarding the "Energy Partnership" Gate Rate filing of Lone Star Gas Company until January 9, 1989. As you will recall, the "Energy Partnership" filing is an effort by Lone Star to increase gas rates by a maximum of $.035/Mcf to cover the Implementation of a gas equipment rebate program. For your convenience I am attaching a copy of the Company's filing before the Railroad Commission, as well as several letters from the law firm of Butler and Casstevens setting forth Information to the Cities who had, as of that time, intervened before the Railroad Commission in order to preserve and protect the rights of their citizens. As you will note, In the December 12 letter from Butler and Casstevens there is a request that additional cities be recruited into this case, and that's why I contacted you. In particular, the City of Denton should have a special interest in the outcome of this proceeding. The reason for such special concern on the part of the City of Denton versus many other cities is that the City of Denton owns its own electric system, and --1 thus, Is in direct competition with Lone Star for providing the energy needs of many of its t citizens. The "Energy Partnership" rate would be an attempt to have your citizens pay higher gas charges in order to provide rebates for the purchase of gas equipment. These rebates have the potential to reduce the future growth of the City's own municipal electric system, which could result in a double rate Impact to your citizens. Another matter that we discussed was the cost of such intervention to the City. As I indicated to you the City has the right to have all of its reasonable expenses reimbursed b the Company if it intervenes in such proceeding. Therefore, I hive attached a copy of Article III, Secion 3.03 of the Gas Utility Regulatory Act, which pertains to cost reimbursements to municipalities for such interventions. As you will note, cities are i I i l i I I v reimbursed for all expenses found to be reasonable by the regulatory authority, that being the Railr.~ d Commission. Further, the Gas Utility Regulatory Act indicates that the Railroad Commission does have the authority to combine various city appeals into one. Given that many cities in the Dallas and Central Texas area have already intervened and have retained the law firm of Butler and Casstevens to represent them, the likelihood exists that if you were to Intervene separately you would be combined with the other municipal groups unless you could show a basis for why your point of view should be 1 separated from other cities. In any event, the cost for the intervention will probably be spread to all customers of Lone Star whether or not your City chooses to Intervene. Thus, there would probably be no additional costs to the City for legal or technical assistance if you decide to intervene. In summary, if your City desires to preserve Its rights in this proceeding, you should, if at all possible, take action prior to January 9, 1989 by intervening before the Railroad Commission. It is entirely possible that if enough cities join the Intervention, Lone Star may retract its filing, and thus, eliminate the need for any further rate proceeding before the Railroad Commission. If you desire additional information, or for that matter if you would like us to further explain any of the facts associated with this proceeding to you or your City, we would be more than pleased to comply with any such request. If you desire to intervene, please contact Mr. Don Butler at the law firm of Butler and Casstevens, (512) 327.2812. I Sincerely, rout ; Jack Pous t Diversified Utility Consultants, Inc. i a Enclosures JP/tic i { ~ I J i