HomeMy WebLinkAbout02-25-1992
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Agenda No. ~q
AGENDA Agenda Ilem~____
CITY OF DENTON CITY COUNCIL We f February 25, 1992 ~;'~?y ~)J,. L
Special Call Session of the City of Denton City Council on Tuesday,
February 25, 1992 at 6:00 p,m. in the civil Defense Room of City
Hall, 215 E. McKinney, Denton, Texas at wnich the followin ite
will be considered: g ms
0i:00 p. m.
1. Executive 5assion:
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.
11 Ccas.ideraticn of leases with Cooke County College
and Morrison Milling Company.
2. Receive a report and hold a discussion regarding Section 9
Federal Transit Administration Financial Assistance.
3. Receive a report and hold a discussion regarding an update on
the Upper Trinity Regional Water District contracts and give
staff direction.
4. Consider an appointment to the Cable T. V. Advisory Board,
5. Miscellaneous matters from the City Manager,
6. Executive Session
A. Personnel /Board Appointments Under Sec. 2
625217 V.A.T.S. (g)~ Art,
1. Consider appointment: to the Building Code Board
and the Plumbing and Mechanical Code Board.
2. Consult with City Manager, City Attorney and
Municipal Judge regarding goals and objectives for
1992 for Municipal court,
7. Official Action on Executive Session Items:
A. Legal Matters
B. Real Estate
C. Personnel
D. Board Appointments
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I certify that the above
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the _day of city Hall of the city of Denton, texas on
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(p.m, j , 1992 at --o'alock.
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Agenda
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fZEPORT FORMAT
P0: Mayor and Mem ers of the City Council
FROM: Lloyd V. Harrell, City Managor
SUBJECT: Leasing of the Moore Facility (Morrison Milling and Cooke
County Collegn as Lessees; City of Denton as Lessor)
RECOMMF.N AZIO:
It is our recommendation, if the cost/benefit analysis makes it feasible,
to create a new revenue
facility. st,rAdm by leasing unused space at the Moore
-E~RY:
We will discuss with you the possibility of, loasing out unused space at
the Moore facility without having a negative impact on -jur future space
Master Plan,
BC G U D:
Phase I of the Space Plan shows the Moore building having unused space
into the year 2006, we have been approached by two groups who have
displayed a very strong interest in leasing the unused space at the Moore
facility, We will discuss the group81 second offers and the City of
Denton's proposed counter offers,
PROG AMS, DEPARTM, NT3 OR GROUPS AFFECTED;
Facility Management, Finance, Legal, and Municipal Services/ Economic
Development,
FISCA TMPA TI
Dependent on outcome of negotiations,
RPSPE;",TFULLY SUBMITTED:
V. Harrell
4=1'
Prepared by; city Manager
Name Bruce Hen ngton
Title S er endent of Facility Management
Approve
i
Name Bey C- an
`a"itle Execu Director for \
Municipal Services/Economic Development
t,genda No.
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CITY Of DENTON, TEXAS MUNICIPAL BUILDING ! 215 E. MCKINNEY / DENTON, TEXAS 76201
M E M O R A N D U M
TO: Mayor and Members of the City Council +
FROM: Bruce Henington, Superintendent of Facility Management
THRU: Betty McKean, Executive Director for Municipal services st
and Economic Development
DATE: February 19, 1992
SUBJECT: Leasing of the Unused space at the Moore Building
It is our goal to keep you informed every stop of the way as we
prepare the plan to make use of the Moore facility. on Tuesday,
February 25, 1992, we would like to discuss with you the
possibility of leasing unused space at the Moores Building, We
have requests from two different groups that would like to lease
space within the Moore Building for a term of 10 years, These 10
year term leases, if approved, would give us a good revenue stream
and still conform to the long range Master Space Plan,
The Morrison Milling company needs to lease approximately 47,000
square feet of warehouse space. The company would be housed on
the very north/east of the buildinq. The City of Denton, with
very little investment, will recoup its cost and gain a net
revenue of approximately $700,000 over the 10 year period,
Additionally, this contract will allow the City of Denton to
contribute to the business retention and expansion of one of our
"mainstay" industries, This portion of the building would be
used, maintained, and improved instead of sitting empty and
continuing to deteriorate. Mr.. Morrison and his staff have given
us a second counter proposal which is attached for discussion.
Cooke county college needs to rent classroom and office space in
the Denton area, They need to accomplish this as soon as possible
to be ready for Fall classes. 1 community-based, state supported
community college provides technical/vocational, post secondary
programs which reduce citizen outflow for retraining; reduce the
load on social agencies by providing relevant, low cost education;
and assist in attracting now business/ industry. This Denton
branch campus would bring into our community approximately $6,000
8171566.8200 01rW METRO 4342529 +
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February 19, 1992 y
Page - 2 kRdil No.
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per student which either remains in the city when stunts an stay
at home to attend the college or comes into the city from students
who come from outside the City. At the present time, there are 360
students with the possibility of growth. Dr. Bud Joyner, president
of Cooke County College, has submiti.ted his second counter proposal
to lease approximately 16,000 square feet of office and classroom
space at the Moore Building. A small portion of this space would +
be subleased to JTPA. Also, this lease agreement would produce a
revenue stream and still conform to the long term Master Space
Plan. This lease would produce a net revenue of approximately
$900,000 over the 10 year period,
staff met this week with both groups to finalize the attached
proposals and counter offers. Also, attached you will find a
comparison chart for each group. These charts show our net revenue
discussed with you on December 10, 1991) each group's counter offer
in January, 1992, and the City's last counter offer in February,
.1992. Behind each group's comparison chart you will find a li.r.t of
assumptions for discussion.
thatowedproceed to discuss with leasing e to these twosgr upshbayou sed and propose
revenue figures.
If you should have any questions prior to our discussion, please do
not heigitate to call me at 566-8270.
Hr ce Nen ngton~
Attachments
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February 191 1992 COMPARISION CHART
MORRISON MILLING COMPANY
M.M.C.
SQUARE FEET= 47,OOU sq. ft. of warehouse space.
TERM OF LEASES 5 year with a 5 year option 15% increase in the second 5 years.
CITY FINAL pROPOSED COUNTER OFFER NETS $705,743 (M.M.C.) City
city Jan. 28, 1992 Feb. 14, 1992
Countor offer
Dec. 10th, 1991 Counter Offer
$1..50 $1..50 $1.50/$1.72
Cost per sq.ft. $757,875
$705,000 $757,875 (45,000)
! Gross Revenue (82,500) 1 6.5%
Minus Finish-out L 3 00 8$ 7 $705,743
Minus Interest $705,000 $6621375
Net Revenue city
City city M.M.C.
Separate Electrical M.M.C. M.M.C. Yes
Utilities Etc. Yes Yes Yes
Use of East and Yen Yes
Use of Northside Yes
Change street to yes Yes Some
one way traffic N/A Yes
change turning radius Yes ,n
alo~~e East and electric No Yps «
and poles
'
8 Up to 6 VIS
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Loading Ramps 4
Notes All numbers aubject to audit by the City of Denton Finance Department. O
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February 20, 1992oadaP~o..__9f>CJm
ASSUMPTIONS AUor tla Ilam_J~~!7~,.~,.
MORRISON MILLING COMPANY Lltlri_0~
• Morrison will lease 47,000 square feet of warehouse space £rom the
Cit•., of Denton.
• The term of the lease is five years with a second five year option.
• The cost per square foot is $1.50 for the first five years. For
the second five year period, the cost per square foot is $1.50 plus
a 15$ increase.
• City will pay for a percentage of loading ramp construction cost ,
at a cap of $45,000. City will borrow the money for the renovation
from the General Fund balance and pay the cost back with interest
equal to the amount if invested elsewhere.
• Utilities will be sub-metered and separated.
• City will remove all utility poles and transformers in order to
accommodate new truck loading docks.
• City will allow six new loading docks.
• City will allow Morrison to use existing docks for up to go days
while the new docks are being constructed,
• Morrison will manage construction of loading docks subject to the
City architect's approval.
• City will repair and maintain the roof and structure. Morrison
will repair and maintain everything else.
+ There will be no more than approximately 15 trucks within a 24 hour
day with no more than six trucks located at the building at one
time.
• City will construct a new privacy fence at the east end of the
building to insure no eight of loading and unloading of trucks.
• Morrison will have the right to remove non-structural walls and
diviFiions subject to the City architect's approval.
+ Morrison will have the right to modify doorways to accommodate
their equipment subject to the city architect's approval.
• Morrison will have the right to paint or improve outside or inside
of the building subject to the city architect's approval.
Morrison will have the right to remove or modify some segment of
the old fencing to accommodate truck traffic subject to the City
architect's approval,
• City would install more effective street lighting for security.
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• Morrison will close off the area of the building that Morr son
would occupy. A separation wall will be needed to separate rented
space from unrented space,
• Payment of annual ad valorem taxes for real property will be paid
by Morrison subject to the following conditions. The base assessed
valuation will be the value placed on the real property by the
Denton Central Appraisal District for the improved real property as
of January 1, 1993, If improvements have not been completed as of
this date, a base appraisal will be made at the time of completion,
The taxes due on the property will be calculated by taking the
value, less any exemptions, times the tax -ate for all
jurisdictions. Any future year increases of the taxes on real
property will be paid 100% by Morrison up to a 3% increase of total
real property taxes. Any increases above 3% will be paid on a 50-
50 basis between Morrison and the city of Denton.
• The City will turn one street into a one way street in order to
accommodate truck parking,
• Truck Street Ingress/ Egrek.;l The city council will choose from
either Option A or option B as a permanent transportation route
to/from the Moore Building.
.LMap A.
All Morrison's trucks must enter from eastbound McKinney Street
making a left turn to Frame, They would then proceed down Frame to
oak, either docking on Oak or, making a right turn on to Exposition
and backing into the docks.
To leave the facility in order to return to the Morrison's plant or
go south on I-35E, the trucks would make a right turn on Hickory to
Bell Aventie and then make a left turn on to Hell, to either the
plant or I-35E south, if the trucks were going north, they would
havo to exit left on Hickory, travel east to Bradshaw, make another
left on Bradshaw, and then turn right on to McKinney and proceed to
Loop 288, They could travel north on Loop 288 to University and go
either east or west or north on I-35E by taking Loop 288 south,
City of Denton would fix the radius at Frame and McKinney as needed
as well as Frame and Oak, and oak and Exposition, and Exposition at
Hickory. City of Denton would also look at making renovations to
the radius at Bradshaw and. McKinney,
Option B./Map B.
All Morrison trucks must enter from Bell Street turning right on to
Hickory, then proceed down Hickory and turn left on Bradshaw up to
McKinney Street, Turn left (going west) on McKinney Street and
then left on oak in order to dock at the building.
To leave the facility, the trucks can go left or right on Hickory.
If they go left (east) on Hickory, they must proceed left on to
Bradshaw turning right on McKinney and going east out to the Loop.
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1'401oa No. _ 902 66e6
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If they turn right (west) on Hickory, then a left o* YlZand
out to the plant or Dallas Drive,
City of Denton would fix tho radius at Frame and McKinney as
needed as well as Frame and Oak, and Oak and Exposition, and
Exposition at Hickory. City of Denton would also look at making
renovations to the radius at Bradshaw and McKinney
• City of Denton city Council must take formal actions to approve, ,r
• occupancy to occur after. Morrison receives certificate of
Occupancy knd upon receipt of signed contract.
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COMpARI5I0N CHART
COOKE COUNTY COLLEGE
C.C.C.
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SQUARE FEET: 16,000 sq. ft. (office/Clans room space)
TERM OF LEASE: 10 year lease, $7.00/square foot for the first four years - $7.50/square foot the last
six years
CITY FINAL VROPOSED COUNTER OFFER NET: $949,400
C.C.C. city
city Jan. 20 Feb. 6
Dec. 10th counter offer counter Offer
$6.00 $7.00 $7.00/$7.50
Cast per sq.ft.
$960,000 $1,1201000 $10168,000
Gross Revenue 0 (192,000) (192,000)
Minus Finishsout Ii 000 8% {26.45 0 6.5%
Minus Intoret $ $ 949,440
;9600000 895,000
Net Revenue
C.C.C. C.C.C.
Utilities - Etc. C.C.C. 300 150 controlled
Parking spaces 300 City city
construction Mgmt C.C.C.
City
Who borrows money C.C.C.
for finish-out C.C.C.
City thru f0
Who pays for City thru City thru Rent receipts
finish-out Rent receipts Rent receipts M
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Maintenances c,c.c. C.C.C.
Interior C.C.C. City '
Exterior city city city
structural city city
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Notes All numbers subject to audit by the city of Denton Finance Department.
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February 20, 1992 korrdaNo.~.IM,.~--_ k,
ASSUMPTIONS rA(laide Ilonr_ Z„„j, , /
IAIig
COORE COUNTY COLLEGE
• Cooke County College will lease 16,000 square feet of office and
classroom space provided the North Texas Education and Training
cooperative agrees to share the leased space with Cooke County
College. Otherwise, Cooke County College will commit to lease
12,000 square feet,
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• The lease term is for 10 years. °
• Cooke County College will pay $7,00 per square foot for the
first four years and $7.50 per square foot the final six years,
• Renovation cost will not exceed $12.00 per square foot. Cooke
County College will review and approve renovation plans prior to
lease.
• 150 controlled parking spaces allowed. Cooke County College
assumes responsibility for procuring additional spaces if
needed.
• City will manage and pay for interior finish out and recoup
funds within four years.
• City will borrow the money for the renovation from the General
Fund balance and pay the cost back with interest equal to the
amount if invested elsewhere,
• C.C.C. will maintain the interior of the building, and the City
will maintain the structure, exterior grounds, and roof.
• Taxes are not paid by either governmental agency,
• If the lease is approved, written, and signed by April 15, 1992,
the move-in date would need to be by July 30, 1992.
• All space leased by C.C.C. will be separately metered and paid
for by C.C.C.
• In the very remote circumstance in which the State of Texas
should suspend college funding for students attending the Denton
campus, the lease would have to end.
(This circumstance is extremely unlikely. C.C.C. has been
serving Denton County for over 20 years and is already approved
for the 199293 academic year. Even if funding should be
suspended, current coordinating Hoard rules call for at leant
one year's notice which would, in effect, permit the 93-94 year.
Finally, to our knowledge, state funding for a state college
site has never been withdrawn except in those situations where
a new state institution assumed the operation.)
ti The City of Denton City council must take formal actions to ~
approve.
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CITY
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CITY COUNCIL REPORT
T0: Mayor and Members of the City Council
FROM: Lloyd v, Harrell., City Manager
SUBJECT: Update on Section 9 Federal Transit Administration
Funding for Public Transportation in Denton
DATE: February 25, 1992
BACKGROUNDi
The City received confirmation from the Texas Department of
Transportation (TxDOT) that the City has been officially designated
recipient and grantee of Section 9 Federal Transit Administration
(FTA) funds. The Governor has also designated the North Central
Texas Council of Governments (NCTCOG) as the Metropolitan Planning
Organization for the Denton urbanized area, The Denton urbanized
area is essentially the city limits of Denton and is based upon
population and population density of the area,
SUMMARYi
A SPAN/City task force has been working on fulfilling Section 9
requirements and developing a funding application. To make sure
that SPAN does not have a gap in funding during the transition from
Section 18 to Section 9 funds, the application must be received by
the FTA by April 11 1992. Therefore, the task force is working to
bring a proposal to the City Council at the next regular meeting,
The task force is also working with Al Murdock to get SPAN board
approval,
In order to receive Section 9 FTA funds
Transportation Improvement: Program (TIP) must,be t amended tto include
Denton's program for 1992-93, The NCTCOG's Public Transportation
Technical Committee and the Regional Transportation Council will be
reviewing the one--year TIP for the City of Denton and amending the
92-93 TIP. The City and SPAN will begin working on the five year.
TIP in the next few months, according to the NCTCOG's regular
schedule. This five year plan will be brought to the City Council
for input and approval at that time.
Based on the population of the Denton Urbanizod Aron, the State has
allocated $340,546 for Denton in FY 92-93, This is more than all
of Denton County was allocated under Section 18, Last year,
approximately $177,600 of Section 18 funds wero spent in the City
of Denton. SPAN will continue to receive Section 18 funds for
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Denton County. The City of Lewisville will r Qteiv~'`ti ai'1o anon/, ~~j s
for the Lewisville Urbanized Area. ((J~
SPAN's Section 18 allocation for the City of Denton will end on
August 31. The State administers these funds and its fiscal year
begins September. 1, Section 18 funds may not be spent in the City
of Denton after the 91-92 State fiscal year ends, Because of this
funding gap for SPAN transportation in Denton, the City is
requesting $363,318 from the FTA for a 13-month period. The entire a
92-93 allocation is being requested for the 12-month period as well
as an additional pro-rated amount for the thirteenth month. This
will ensure that SPAN has funds for the one month gap after Section
18 funds end for the Denton Urbanized Area on August 31.
It is our understanding that many agencies do not request their
entire allocation and so there are excess federal funds in Section
9. The TxDOT informed us that Section 9 recipients have not been
denied funds over the allocated amount since there is ple.:t,/ of
money allocated for the entire state. The FTA also encouraged the
task force to apply for the entire amount needed, even if it
exceeded the area's allocation.
Included in the proposed program for the 1992-93 fiscal year are
three types of financial assistance: Planning, Capital, and
Operating. The breakdown of matches are listed below:
[,oca1
Federal State City
Planning 80% 13% 7%
Capital 80% 13% 7%
Operating 50% 25% 25%
Based on the proposed Section 9 funding request, SPAN will continue
to operate demand-response elderly transportation, Handillop, and
the four fixed route public transportation. In addition, the
request includes three now lift-equipped, 12-passenger vans for
elderly and handicapped transit; and new, larger signs for the
public trolley system. SPAN expects to receivo it bus and a trolley
from an earlier. Section 18 grant tl,.is summer. With this new
equipment, SPAN anticipates beginning a fifth trolley route during
the 92-93 fiscal year. The City and SPAN will also be evaluating
the trolley system to determine if additional stops on existing
routes are warranted. Elderly persons and persons with
disabilities will also be eligible for half price fares on the
trolley system. SPAN and the City will also be looking at a pass
system on the public routes, with possible reduced rates for
frequent riders. Now maps will also be printed and distributed
during the 92-93 fiscal year.. /
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Benda Plo,
Agenda Ito
PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTEDi 0316k"
Elderly, handicap, and public transportation riders, SPAN sta£f,06 P
various City departments
FISCAL IMPACT:
Last year the City of Denton allocated $16,000 for the FiandiHop
program and $10,000 for. Elderly and other transportation. The
Section 9 application request is based on last year's City cash
contribution of $56,000, plus City staff time that will count
toward local match. The SPAN allocation will be proposed in the "
City's 92-93 budget and will follow the normal budget approval
process. If this amount is not allocated, then the matching amount
of federal dollars will not be available for SPAN transportation in
the Denton urbanized area,
RESPECTFULLY SUBMITTED,
Lloyd V, Har2611
City Manager
Prepared byt
Catherine E. muck
Administrative Assistant
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AUenda ll05-44-_
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TIMELINE FOR SECTION 9 APPROVAL AND IMPLEMENTATION
February 25 City Council Work Session discussion
February 28 NCTCOG's Public Transportation Technical
Committee review of TIP amendment ,
March 2 Public Hearing
March 3 City Council discussion and review of
Section 9 request
March 12 NCTCOG's Regional Transportation Council
review of TIP amendment
March 17 City Council discussion and review of
Section 9 request
April 1 Section 9 application and TIP amendment
due to Federal Transit Administration
May 19 City Council Budget discussion of
't'ransportation budget
June 30 FTA approval of Denton's Section 9
application
Major Budget Issues report to the City
Council
July 28 Proposed Annual City Budget presented to
the City Council
September 1 1992-93 Section 9 funds available from
PTA for SPAR
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Adanda No Aoonda!!om
CITY'S FY 92-93 LOCAL MATCH fut0~L~
PROGRAM
CASH IN-KIND MATCH
Capital $8,430
This will include all
labor involved with o
installation of new
signs, removing old
signs, placing signs for
new route.
Planning $29,140
This includes salary of
City staff members in
Planning, Engineering,
City Manager's Office,
and other departments
that perform work in
planning and grant
administration. Time
sheets will be kept a -i
the City will be
reimbursed for actual
Cost. This money will be
passed through to SPAN.
Operating $56,000
This amount is
equal to the
City's cash
contribution '
during FY 91-92.
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11e ruary 25, 1992
CITY COUNCIL WORK SESSION
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TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM. R. E. Nelson, Executive Director of Utilities
RE: RECEIVE A REPORT AND HOLD A DISCUSSION REGARDING AN
UPDATE ON THE UTRWD CONTRACTS
RECOMMENDATION:
Not Applicable,
SUMMARY/ BACKGROUND:
A throo member task force from the Upper Trinity Iloglonal Water District,
along with a throe member task force from Denton, have been negotiating on
contracts for intorim sale of wholesale raw water and for water treatment and
transmission services with the Upper Trinity Regional Water District,
Denton had submitted a water treatment services contract to the UTRWD last
fall that included an interim phase and a long;-term phase with options to
purchase future blocks of water treatment capacity, The interim phase water
treatment price was based on a peak day demand and a volume prloing
component that was determined from Denton's average costs, according to
standard accepted rate making methodologies, The future options were
specific blocks for each future phase of the plant, w!th the option for the first
phase of the plant, planned for the 1999 to 1997 timo frame, a firm option and
future options contingent upon the working relationship with the UTRWD.
The UTRWD countorod with a more goneric contract that included an interim
phase, with prices based on "surplus" capacity and a long-term phase with
options to future blocks of water treatment capacity, but with a guaranteed
opportunity to exercise future options. The UTRWD's counter contract
interim phase pricing for "surplus" capacity is based on tho concept used by
the airline Industry whorohn they sell discounted fares for "as available"
Boats, In the water or any other production based industry, facilitios are
built for some ultimate neods but during an interim period there is "surplus"
capacity that goes unused, The pricing that the UTRWD is agreeable to
paying for this capacity is, of course, lower than otu, own customers pay since
It would be Interim wator and not firm water Bervlco such we provide our own ~
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City Council Agenda Item
Page 2
At the present time the staff has some concerns about the long term phase of
the contracts, especially the obligations and the pricing concepts. These a
concerns relate to the guaranteed future options, requirements to build future
pant expansions when the UTRWD needs capacity, obligations to future
extensions of the contract term (probably 20 year extensions each time the
plant is expanded), longterm water transportation obligations, and the
prich.g which would not totally recover the B% return on investment that the °
water department pays to its "stockholder", the City's General Government.
Therefore, the staff would like to explore with the Council the concept of
separating the interim phase contract with the long term contract.
There is a separate contract for surplus raw water and Denton and the UTRWD
appear to be in agreement with most of the concepts and terms of that
agreement.
The interim phase contract would be for approximately five to six years and
Denton would guarantee the UTRWD up to four or five million gallons per day
of treatment capacity. The UTRWD would pay Denton $ .45/1000 gallons of
treatment capacity used. There would be a 50% take or pay clause. They
would also pay for transportation at a rate of $ .10 per 1000 gallons. They
would also pay the actual variable costs of chemicals, electrical pumping costs,
etc.
The raw water that would be treated for the UTRWD under this Interim water
treatment services contract would be bought from Denton under a separate
contract at a price of 80% of Dallas' raw water costs. The reason for the 80%
price figure is to assure that this raw water is sold as "temporary surplus"
water and thereby not risking losing any of Denton's water rights.
The UTRWD believes that the revenues to Denton will be in the $1,000,000 per
your range. This, of course, is not all not revenue since chemical, pumping
costs, etc, must be subtracted. Also this is not all new revenue since Denton
is already soiling approximately $700,000 of water to Corinth and hCMUA.
However, the Staff does believe the net revenues will be sufficient to result
in an approximately 4-5$ reduction in water rates below what would otherwise
be necessary.
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rN)onda No.
rlg8oda Item_ WJ 9
Dato
Since Denton and the UTRWD appear to be close to agreement on the raw water
contract and on the interim phase, (provided Denton agrees to the pricing),
by moving forward with those two agreements the UTRWD can proceed with its
plans to submit an application to the Texas Water Development Board for funds b
to build the necessary pipelines. The UTRWD is attempting to meet an April
time frame for making this application. The two parties can then continue to
work on the long-term water contract,
The Staff will outline the latest issues of the contract to the Council at the
work session on Tuesday February 25, 1992, Also attached is a letter from
Tom Taylor, the General Manager of the UTRWD, expressing the UTRWD's
position on the water contracts,
Rospectf lly,
LPG,
Lloyd V. Harrell, City anager
Prepared /Approved by;
A, Nelson -
Executive Director of Utilities
Exhibit i; Letter from Tom Taylor
A: Iccutrwd, 225 C
DISK JJ
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Agpnda No.
UPPER Aoonda roni_WWU,
ja;,- lol TRINITY NIB___
February 21, 1992 °
Mr Lloyd Harrell
City Manager,
City of Denton
215 E. McKinney
Denton, TX 76201
Dear Lloyd,
The purpose of this letter is to summarize and urge consideration
of a proposed mutually beneficial relationship between Denton and
the District for wholesale treated water service, We are heartened
by discussions between the City's Contract Committee and the
District's Contract. Committee, To keep the City Council up to date
we suggest you forward a copy of this letter to the City Council,
The District has executed contracts with nine cities and utilities
to provide treated surface water on a regional wholesale basis.
The District has entered into contracts with the City of Dallas and
the City of Commerce for a long term supply of raw water, The
Board of Directors is investigating various alternative strategies
for treating the water and supplying the necessary quantities on a
timely basis to each of the nine entities. The Board of D'.r.ectors
is sghedujed to_make_a_decision between the various alt erriative4in
Aril, _rAc__weuld like for the Board of Directors to have asoie_of
ts_.nptions,_ a_contraet_wit-__h,_the Cit•~of Denton,
The District's Contract Committee supports a proposed contract with
Denton for the following reasons;
1. Cood Results. it would be good for both Denton and the
District,
2. Lony Range.PlanninThe proposed contract recognizes
that long range planning for the future water supply
needs of Denton has, inherently, created some temporary
excess capacity, This temporary excess capacity is over
and above current needs, but will be needed as the city
grows.
3. Raw Pa er_,5upply_ The City has a large water supply in \
Fake Ray Roberts, much of which is not currently uss?d.
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P.0, Drawer 305 • I_owisville, Texts 75067 • 214-219-1228
UPPER TRINITY l of ional Wat'ev DiAY*Po
nganaa 1iam__06 9 _..b...
Mr. Lloyd Harrell
City Manager, City of Denton
February 21, 1992
Page 2
4. Treatment_Canvcitlr_ The District proposes to lease or
use any surplus water treatment capacity the City may be
able to make available for the next 6 years. The surplus ,
capacity could come from the city's treatment plant or
from standby wells. If an average of 3.0 mad of treated
water could be purchased temporarily, such a sale would
generate approximately $1,000,000 per year in new revenue r
for the Denton,
51 Excess Raw Water. The District proposes to purchase
approximately 5.0 million gallon of raw water per day
until Denton needs it. Such a temporary sale would
generate approximately $730,000 per year in new revenue
for Denton.
6. New Revenue. If the District could purchase surplus
treated water for 3 years and surplus raw water for 10
years thereafter, a reasonable estimate of net revenue
(over and above Denton's out of pocket costs) would he
$10,300,000. This would be new revenue without any
additional investment on Denton's part. New revenue of.
$10,300,000 could help hold down water rates to Denton
citizens, This estimate is based on modest surplus
capacities, actual revenues could be greater depending on
amount of excess capacity actually available.
7, Water For. SAnTgjr., The City of Sanger needs water on an
expedited basis, The District proposes to participate
wi;h the City of Denton in a water line along 111-35 to
s-~rva the City of Sanger. Such a line could help
generate economic development for Denton and, at the same
time, help a neighbor. Denton's participation should not
require any net expense to Denton.
81 Existi,ng_Wholesale_.__Customers. The City of Corinth and
the Lake Cities Municipal Utility Authority currently
receive treated water from Denton. The District
recognizes the need for a reasonable transition period to
protect Denton's investment. Also, Denton and the
District need to cooperate to assure long term supply to
Corinth and LCMUA through water Lines from Dent.on's
system.
UPPER TRINITY 1?egi nal, Water District
AQ@ndj No
t Mr. Lloyd Harrell hllQnaaltom,
City Manager, City of Denton tlrtc a ~5
February 21, 1992
Page 3 ~
9. Okj;ior_ Far Long_Term-Treat ed Water. The District would
also like to have the option of purchasing treated water o
on a long term basis from Denton for a portion of the
District's service area, This could generate additional
revenues for the city and would allow the City to build
a more cost effective plant at Lake Ray Roberts,
10, RLci rocal.Option,- Finally, the District extends to
Denton the same opportunity to purchase treated water on
a temporary basis out of future surplus treatment
capacity of the District, Such an opportunity could
allow the City to save over $1,000,000 per year (avoided
debt service on a new plant) by coordination of
construction schedules,
Above, I have highlighted the benefits to Denton, Of course, the
proposed contract would be to the District's benefit as well. If
we can purchase temporary surplus treated water from Denton, it
will help the District meet the needs of its customers (without
having to drill more wells) until the District's plant can be
completed,
Cooperation between governmental units is always in order, We
think that cooperation inherent in the prcposed relationship makes
a lot of sense for both of us, We_look forward to compl_ettp a
contract xn time.to_be_taken_into accounts hhe_Board o- Directors
when theme make their final_ decisions~about__the__r.egiona_1 tlater
gUPI~1_Y_uysten~ in A~sri1.
Respectfully submitted on behalf of the District Contract
Committee;
Jim Karlovich, President
Tom Rarpool, secretary
A. L. Utesch, Treasurer.
B
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Thomas E, Taylor, P,F
Executive Director:
TET
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HANDOUTS TO COUNCIL
AT MEETING OF 2-25-92
C
MEMORANDUM
TO: Jennifer Walters, City Secretary
FROM: Jackie Doyle, Building Official
DATE: February 24, 1992
SUBJECT: Bill Burley's Association with CBS Mechanical, Inc.
Today I talked with Mr, Bill Burley regarding his association with
CBS Mechanical, Inc. Mr. Burley said that his duties at CBS were
those of a consultant and that he was writing an operations manual
for the company. He said that "he served on the Plumbing and
Mechanical Board at the pleasure of the Council and that if they
wanted him to resign he would."
Jaakia j$ -
Building official
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HANDOUTS TO COUNCIL.
AT MEETING OF 2-25-92
MEMORANDUM
9
TO: Jennifer Walters, City Secretary
FROM; Jackie Doyle, Building Official
DATE: February 25, 1992
SUBJECT: Vacant Board Positions
Building Code Board has one regular member and one alternate
member vacancy. The regular member if possible should be an
engineer. Alternate member position has no specific requirements.
Electrical Code Board has one regular member vacancy which if
possible should be filled by a building contractor. Terry
schertz, o building contractor is currently an alternate member
who could fill this position. If this were done another alternate
would be needed.
Plumbing and Mechanical Code Board has one vacancy and possibly
two if sill Burley has to resign. If two positions are required
to be filled they should be filled by mechanical contractors if
possible.
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Dear
The Building, Electrical, Plumbing and Mechanical Code Boards of
the City of Denton are in need of qualified members to fill
vacancies as they come open. Eve feel that you may have
individuals within your organization who might be interested in
serving the community through their participation on these
boards.
Both the Building and Electrical Code Boards are five member
boards, each having two alternate members. The Plumbing and
Mechanical Code Board is a seven member board with no alternates.
These boards have the following responsibilities.
1. Make recommendations to the city Council concerning
adoption of the latest code editions or amendments to
existing ordinances;
2. Hear appeals from citizens or contractors concerning
interpretations of the Code by City inspectors;
3. Hear requests from variances from code requirements;
4. Building Code Board conducts public hearings concerning
substandard buildings and determines whether they
should be demolished or rehabilitated; and,
5. Electrical Code Board reviews and approves or
disapproves electrical exam applicants and
applications.
Attached is more detailed information about each board. Also
enclosed is a Board Appointment information form which should be
completed and returned to us. We would appreciate your
distributing this information to those who might be interested.
Please feel free to contact me if 1 can answer any questions
which you or your employees might have on this valuable community
service.
Sincerely,
Jackie Doyle
Chief Building officlal
dw
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CITY OF DENTDN
BOARD APPOINTMENT INFORMATION
NAME _Y
ADDRESS
PHONE NO,
CITY 5TA1'F Z'- Ip CEDE
a
NAME OF EMPLOYER
ADDRESS OF EMPLOYER PHONE NO,
. Y~
CITY STATE 2.rP CODE
OCCUPATION HAVE YOU PRIOR SERVICE ON A CITY BOARD?
IF YFS, PLEASE DESCRIBEi
NAME OF CITYi
WOULD YOU HAVE A CONFLICT OF INTEREST ON ANY BOARD?
IF YF.S, PLEASE DESCRIBEt
ON WHICH BOARD DO YOU WISH To SERVE?
STATEMENT OF APpLICANTt
DATE SIONATURE OF APPLICANT
~nRD MEMBER gTrEN ANCE 1'n~~
It is the Policy of the City of Denton City Council Ojai. Members of the various
City Boards and Commissions be removed from office for lack of attendance at the
various meetings of the Boards and Commission. Members may be removed on the
following basist
l Eeoular Meetin°s, Board Members may be removed from office for three
unexcused absences during the course of one year and/or lack of attendance
at 50% of the number of regular meetings in the year,
2. fAt9jA4 Called MeetiDs Board Members may be removed from office for
lack of attendance at 500 of the number of special Called Meeo.ings in one
year.
An unexcusod absence is defined as an absence for which no advanced notification
is given and/or as determined by the Chairman of the affected Doard or l
commission.
OFFICE USE O!lLYt i
TERM OF APPOINTMENTi
THIS APPLICATION MUST DE PRESENTED TO THE COUNCIL MEMBERS IN EXECUTIVE SESSION,
AND NO ACTION WrLL DE TAKEN UNTIL THE SECOND MEETINO FOLLOWING T119 PRESENTATION.
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ELECTRICAL CODS BOARD
1. The electrical code board consists of five (5) members, appointed by the
city council fo. a term of two (2) years, commencing July I of the year
appointed. A member may be removed for cause by the council after public
hearing.
2. To the extent that persons are available within this city, the board shall
consist of one (1) licensed master electrician, one (1)
contractor, one (1) building contractor, one (1) electrical engineer and one
(1) layman, who shall all reside within the city. The city council may
appoint two (2) alternate members of the electrical code board who shall
serve in the absence of one (1) or more of the regular members.
3. All cases to be heard by the electrical code board will always be heard by
a minimum number of four (4) members. The city council may appoini ex
officio members to the board, to have a voice in all matters before it, but
who shall have no vote. The chief building offl~,1al shall be an ex officio
member of the board.
PLUMBING AND MECHANICAL CODS BOARD
1. The plumbing and
appointed by the city council for a term of consists i(2) years, and removable for
cause by the council.
2. To the extent that persons are available within this city, the board shall
consist of two (2) licensed master plumbers, two 12) mechanical contractors,
two (2) mechanical engineers and one (1) layman, who shall sll reside within
the city.
3. No appointed member shall serve more than three (3) consecutive terms. The
city council may appoint ex officlo members to this board, to have a voice
In all matters before it, but who shall have no vote.
4. Regular meetings of the board shall be scheduled on a monthly basis, except
man bor by efore tthe
that meetings may be cancelled when there Is no gus by to come
he
board, Special meetings may be called at any y
secretary.
BUILDING CODS BOARD
1. The building code board consists of five (5) members appointed by the city
council for a term of two (2) years, commencing July I of the year
appointed. A member may be removed for cause by the council after public
hearing.
2. To the extent that persons are available within this city, the board shall
conslat of one (1) general contractor, one (1) architect, one (1) engineer
and two (2) additional membura, who shall all reside within the city. The
city council may appoint two (2) alternate members of the building code
board who shall serve in the eb.soncs of one (1) or more of the regular
members.
J. All cases to be heard
minimum number of four (4)tmembers, The city council may appoint ex officio
members to this board, to have a voice in all matters before it, but who
shall have no vote. The chief building official shall be an on officio
member of the board.
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Mr. Dale Lehar
Corporate personnel officer
Tetra--Pak i
3300 Airport Road
Denton, TX 76201
rig. Lehar
Ms. Ann pomykal
community Relati,'ns Manager.
Texas Ynstrumentr
3940 N. Elm
Denton, TX 76202
Ms. pomykal
Mr. Jim F . Tucker 11
Chief Lxeoutive Officer
Turbo Refrigerating Co.
p, O. Sox 39676202
Denton, TX
Mr. Tucker
Mr. Cliff Stephens
plant Manager
Andrew Corporation
2701 Mayhill Road
Denton, TX 76205
Mr. Stephens
Mr. Tom Sass
plant Manager
Peterbilt Motors CO-
P. 0. Box 550
Denton, TX 76202
Mr, Sass
Mr.. Michael Renzulli
chief Lxec}stive Officer
sally Beauty Supply Co.
p, 0, Box 490
Denton, TX 76202
Mr. Renzulli
Mr. Fred Pole
Vice president for Administrative Affairs
Tile University of North Texas
p, 0. Box 13737
Denton, TX 76203
Mr, Pole
Ms, Kathleen Gigl
Texas Woman's University
Box 22718 TWU Station
Denton, TX 76204
T'1u. Ci l.gl
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t 7uVt!H3
Mr. Fred Gossett
Gossett Construction
600 S. Elm
Denton, TX 76201
Mr. Gossett
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HANDOUTS TO COUNCIL
AT MEETING OF 2-25-92
POTENTIAL BOARD MEMBERS
1. Russell Bates - Architect-------------------------387-4881
2. Fred Gossett - Builder 566-2480
3. Craig Gossett - Builder--------------------------566-2480
4. Gerald Stone - Architect--------------------------387-4881
5. Allan Nelson - Architect--- ---------------566-0266
6. Jim Ri.rkpatrick - Architect----------------------387-8182
7. Gary Bell - Builder 382-2828
8. Dave Boston - Builder 387-7752
9. Barbara Russell - Realtor 566-2730
10. Robert bell - ,lumber-Master----------------------382-5360
11. Dan Coward - Plumber-Master---------------------•565-1010
12. Tommy Davis - Builder-----------------------------382-8921
13. Bobby Jones - Builder----------------------------382-3124
14. Bill McCarty - Builder 566-1599 Ise
15. Wayne Smith - Builder----------------------------566-3369
16. Mike Davis - Builder-----------------------------387-2592
17. Russell Madde- - Electrician Master--------°------383-3939
18. Kenneth Keese - Electrician Master---------------387-6050
19. Meyer Insulation 566-1707
20. John Adami - Builder/Realtor---------------------565-9902
21. Emory Groenig - Builder--------------------------382-9931
22. Frank Cunningham - Plumber/HVAC------------------ 382-0367
23. Michael Howard - Architect-----------------------387-0855
24. Tom Bunger - DI.SD/Master Electrician-------------387-8194
25. Temple Holt - TI/Master Electrician--------------387-6419
26. Lyle Whitworth - Master Electrician--------------387-7120
27. Drue Mosley - Master Plumber----------------------383-2422
28. Bob Jones - Builder-------------•-----------------382-3124
29. Dale Irwin - Developer---------------------------566-0033
30. John Allen - Builder 566-1899
A