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HomeMy WebLinkAbout11-16-1993 CITY COUNCIL AGENDA PACKET November 16, 1993 I I I I I I I I I g0endaHa_...~'..L AQendaits~_,.--- AGENDA ~b_11_11~3 CITY OF DENTON CITY COUNCIL November 16, 1993 Work Session of the City of Denton City Council on Tuesday, November 16, 1993 at 5:15 p.m. in the Civil Defense Room of city Nall, 215 E. McKinney, Denton, Texas at which the following items will be considered: NOTE: Any item listed on the Agenda for the Work Session may aloo be considered as part of the Agenda for the Regular Session. 5:15 p.m. 1. Executive Session: A. Legal Matters Under TEX. GOVT CODE See. 551.071 1. Consider action in Scott v~y, 2. Consider action in the matter of the application of Bolivar Water Supply Corporation for an amendment to CCN No. 11257; Docket Nos. 9824-C and 9447-C of the Public Utilities Commission. 3. Consider settlement in Roebuck_ v city of Den on. B. Real Estate Under TEX. GOVT CODE Sec. 351.072 C. Persorinel/Board Appointments - Sec. 551.074 - Under TEX. GOV,T CODE 1. Discussion regarding the hiring of a Second Assistant Municipal ,judge. 2. Receive a report and hold a discussion regarding ADA regt+irements for public transportation and give staff direction. 3. Receive a report and hold a discussion regarding an interim power supply study. Regular Meeting of the City of Denton City Council on Tuesday, November 16, 1993 at 7:00 p.m. in the Council Chambers of City Hall, 215 E. McKinney, Denton, Texas a• which the following items will be considered: 1. Pledge of Allegiance 2. Consider approval of the minutes of the JL•tnt Meeting of October 20, 1993 and the Special Call Session of October 26, 1993. City of Denton City Council Agenda Ag a-i daNp_ ~J✓ D Page November 16, 1993 Agindallem 3. Citizen Reports A. Receive a citizen report from Donald Cox regarding the COPS Program on the west side of Denton. B, Receive a citizen report from Bob Stalder regarding the insurance policy as it relates to smokers and non- smokers. 4, Public Hearings A. Hold a public hearing and consider an ordinance for historic landmark zoning for the Campus Theater, 200 West Hickory. H-93-002 (The Historic Landmark Commission and the Planning and Zoning commission recommend approval,) R. Hold a public hearing to receive input as to whether the Trinity Addition escrow should be called. C. Hold a public hearing to receive input ua to whether to the Cushman Addition oscrow should be called. s. Consent Agenda Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Ppproval of the Consent Agenda authorizes the City Manager or his deeignee to implement each item in accordance with the staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids and purchases orders to be approved for payment under the ordinance section of the agenda, Detailed back- up information is attached to the ordinances (Agenda items 6.A, 6.B, 6. C). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Ago.n4a. Upon the receipt of a "request to speak" form from a citizen regarding an item on the Consent Agenda, the item shall be removtj and be considered before approval of the Consent Agenda. A. Bids and Purchase orders: 1. Bid 01550 - Janitorial 2. Bid 01551 - Distribution Transformers 3. Bid $1561 - Tree Trimming 4. Bid 01557 - Jim Christal Road Paving and Drainage 5, P.O. 132204 - Corgan Assoniates I City of Denton City Council Agenda November 16, 199? Page 3 6. Ordinances A. Consider adoption of an ordinance accepting competitive bids and awarding a contract for purchase of materials, ces 6.jAi2.Rentgid 11551 8 6 A, 3. - Bids 01561) ,I. - Bid 015500 B. Consider adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. (6-A,4. - Bid /1557) C. Consider adoption of an ordinance authorizing the Purchasing Agent to execute a purchase order with Corgan Associates, for professional services relating to geotechnical and architectural analysis at the Martin Luther King, Jr. Recreation Center. (6-A.5. - P.O. /32204) D. Consider adoption of an ordinance amending Chapter 2 of the Code of Ordinance of the City of Denton relating to "Administration" by revising Article III entitled "Boards, Commissions and Committees" by amending Section 2-65 entitled "Term of Office" to provide for a waiting period for reappointment. E. Consider adoption of an ordinance approving the 1993 Lax rolls. 7. Resolutions A. Consider approval of a resolution authorizing the City Manager to execute an interlocal cooperation agreement with Denton County for shared roadway maintenance for City of Denton and Denton County Roadsj and repealing Resolution R93-058. B. Consider approval of a resolution expressing support of the Ad Hoc Citizens' sales Tax Advisory Committeefs recommendation to adopt an additional one half of one percent sales and use tax within the city to be used to reduce the property tax rate at an election to be held on January 15, 1994, and urging all citizens to vote in this election. 8. Consider nominations and/or appointments to the Keep Denton Beautiful Board, the Electrical Code Board and the Juvenile Diversion Task Force. City of Denton City Council Agenda A;erd3No 9.3-of .65 - November 16, 1993 AGvdi1,em Page 4 91 Miscellaneous matters from the City Manager. 10. Official Action on Executive Session Itemss A. Legal Matters B. Real Estate C. Personnel D. Board Appointments 11. New Business This item provides a section for Council Members to suggest items for future agendas. 12. Executive Sessions A. Legal Matters Under TEX. GOVT CODE Sao. 551.071 B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 NOTES THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 1991 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTES THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. ACC0016F - CITY= - COUNCI I ~~pOdOCCoC~~~ pro N t, ~v0'•~ AW44It CITY VOUNCIL REPORT D94 1116 3 TOs Mayor and Members of the City Council FROM, Lloyd V. Harrell, City Manager SUBJECTS Discussion of Americans with Disabilities Act Regulations and Related Transportation Issues DATE, November 16, 1993 RECOMMENDATION, Staff seeks direction to ensure Denton stays in compliance with Americans with Disabilities Act (ADA) regulations. The steps outlined in the Summary section are the staff recommendation, BACKGROUNDS Services Program for Aging Needs (SPAN) has been providing transportation for many years to the elderly and persona with disabilities. More recently, public transportation has been available to everyone in the :Ity of Denton through the trolley system. The ADA required public transit services to provide accessible paratransit service to persons with disabilities, as outlined in the law. SPAN and the City of Denton have exceeded ADA requirements In terms of who is served and the manner in which those persons are served. For example, many of the current riders of the HandlHop paratransit service would not be considered ADA-eligible under the law. The ADA does not prohibit transit providers from extending service beyond t;iose that are ADA-eligible. However, no ADA-eligible person may be denied service because of capacity constraints caused by serving non-ADA eligible persons. Therefore, It Is important to go through a certification process with all riders to determine their ADA-eligibility. Given the fiscal constraints, we need to re-evaluate our operations to ensure that all ADA-eligible persons are able to ride. Al Murdock, SPAN Executive Director, and the SPAN Board have been studying this issue, The ADA discusses who is eligible under the law which for transportation is focused on mobility impairments. The report from SPAN outlines who is eligible and the four tests used to determine this. SUMMARYs Based on the information presented by SPAN, there are several recommendations that we suggest. First, to continue the certification process where persons and their doctors answer questions that help determine their ADA eligibility. Secondly, to i .h ApendaNo ag ras/3 Age,MteM, liJS ~a Date/-14 work with the ADA Advisory Committee on a public education pro to inform people about ADA. Thirdly, to ensure that we first m t all federal requirements on serving the ADA-M _ Me-an~-tMe-serve as many non-ADA eligible persons as pR~~~fibl~ or e iven bud et constraints. Finally, to institute the same are e erly on demand response as persons with disabil1t1ea...and--at-4he same time allow elderly to ride the trolley system free. PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED; Elderly citizens, Persons with Disabilities, SPAN staff, transit riders FISCAL IMPACT; There should be no negative budget impacts. RESPECT LLY SUBMITTED, L oy V. Ha rel City Manager Prepared by; P. . Catherine E. Tuck Administrative Assistant I I u i SPA p~n" enda No el 4c, gal I-1R N1800 MALONE, DENTON, TEXA57`~IiT73_+_+J '1224 MEMORANDUM November 9, 1993 TOi Denton City Council and Staff FROH1 Al Murdock, SPAN SUBJECT= A Review of Denton Transportation in Light of Federal Requirements This is a good time to review a part of the Denton system and to use what we have learned from our first year of Section 9. We want to look at federal requirements. Changes Brought About by 6DA - When Congress passed the ADA (Americans with Disabilities Act) it established a civil right for public transportation and defined the persons who are covered. The definition covers disabling conditions, but also includes persons with certain severe weaknesses from illnesses and those with intermittent or temporary disabilities, such as when recovering from illness or injury. ADA places primary emphasis upon persons who cannot board a vehicle without help and persons who cannot get to the boarding site. One change for us is the relationship of the federal rules to HandiHop rides for persons aged 18-60 who have disabilities. ADA requires ue to determine whether people using HandiHop (and others) are eli,lible for paratransit. The complexity of our task led us to consult with City staff, ADA experts with Community Transportation Association, and Steve Pickett who chairs our ADA Advisory Group. He is Director of the Office of Disability Accomoodation at UNT and is a person with a disability. ADA requires paratransit service that is "complementary" to fixed route service, during the time we offer fixed route service, and "corridors" within 3/4 mile of fixed routes (we exceed both). Eligible people can request service in a lift-equipped vehicle for which they pay $1.50 per ride. klh4 in Eligible? (From AU Paratransit Handbook, USDOT) 1. 10...persons who use wheelchairs, walkers or braces and others whose disabilities prevent them from utilizing an inaccessible vehicle or facility." Greater Iewhviiie z United Way of United Way, Inc. Denton County, Inc, In 0 Ap i7d 'Emr-l~~_ . 2. "The other categories are made up of individuals who, because of the nature of their disabilities, cannot navigate even a transit system that is otherwise accessible. These categories are defined narrowly under the ADA." A. "...individuals who because of their disability can- not independently board, ride and/or disembark from an accessible vehicle.... operator assistance is expected A person traveling with a friend or attendant is still eligible for paratransit service even if they would be able to use the fixed route system with this other person's help." B. Persons 11...who have impairment-related conditions that prevent them from getting to or from a...01 stop. C. A pers,,n who is certified by another system or one who travels as a companion to an ADA eligible person. The ADA uses four "tests." They are Test One - "Does the individual's disability prevent getting to and from a station/stop...? ....This category is meant to be narrowly defined. A distinction is made in the regula- tions between those who have difficulty (or simply find it unpleasant) to travel to or from a...stop and those whose disability brev nts them from doing so. it does not include, for example, an elderly individual who finds it difficult to walk three blocks to a bus stop.... Included among the eligible ...are those who, because of blindness or visual impairment, or because of a developmental or cognitive disability, would be unable to find th.air way to a...stop." Test Two - "Can the individual board +ind utilize and disembark the vehicle at the station/atop?" Test Three - "Can the individual recognize the destination and disembark?" A person with developmental or cognitive disability might not be eligible for daily trips to work or some other places that he/she has been educated to recognize, but might be eligible for an unusual trip to a new place. Test Four - Are the paths of travel at transfer points accessible and navigable by the person? The new rules are different from those in HandiHop. An examples A woman who uses HandiHop is legally blind. Although she can see well enough to perform most daily tasks she cannot drive. She is not ADA eligible. -2- i f S ~Yt f r~ y The new rules create a potential conflict between the ifansporta- tion needs of persons with disabilities and older persons. (Please see the attarhed copy of "Senior Transit Services Could be Caught in Crunch, Study Says," from Cormm_ „ ty Trans_ ortgLUQn $4PQrtgY, September/October 19930 Vol.13, No.6, pp. 10-13.) I" Potential EMU= The &M Parstransit }(andhggk says, "Nothing in the ADA prevents or limits providing transportation services to others among the population with disabilities or more generally to the elderly or to others who are transportation disadvantaged," However, serving ADA eligible persons comes first. We cannot fail to serve an ADA eligible person just because we have directed resources to serving someone else. City of Denton and SPAN can continue to serve whom they choose, if they first provide the resources to serve ADA eligible people. At the moment we think that we have the capacity, when fully utilized, to serve both those who are eligible and those who are ineligible. As we monitor the system we will let you know if we see a developing problem. In order to fully utilize capacity we suggest the following steps o That we continue the eligibility process, as required. We will continue to serve Ineligible seniors as far as funds and capacity allow, our long record of service shows that we can be depended upon to do the best for everyone. In order to prevent misunderstandings we can work with Steve Pickett and the ADA Advisory Croup on a program to educate the public about ADA, including newspaper articles and a public meeting. o That we provide paratransit service to persons found to be "ADA Paratansit Eligible,ol as required, in the 3/4-mile "corridors" along the fixed routes, our presont estimate is that 801 of ADA Eligible persons live within those corridors. We might need to alter the "ADA Plan" to focus on the corri- dors. Because of growing demand we think that we must give priority to the eligible persons in the required corridors, but we would serve ADA eligible people beyond the corridors as space and funds permit. We estimate that the persons outside the corridors would use 2848 rides this year; those within the corridors would use 11,396 rides. The total rides for ADA Eligible persons we estimate to be 14,244. -3- f ti 4 0 That we continue to encourage riders to switch to fixed-route orrtrolleytservicejh60lWeoyeaesti- mate that we may be able to encourage 201 of persons rs and older, who have been receiving door-to-door service bu• who are nut RDA Eligiblo, to switch to the trolleys. That 201 would amount to 4170 rides this year. Use of the trolleys would give greater freedom because the rider would not have to request service. We have received the recommendation that persons 60 years of age and above be allowed to ride the fixed routes (trolleys) free. They now get a discount fare of 35$. This arrangement would enable non-eligible seniors to get rides to places other than senior centers without added costs and would reduce effects of the possible reduction of door- to-door service. We estimate that the impact on the budget would be as follows Loss of trolley revenues....,.*........*..*,.,,.4$3098 Added revenues from payments of $1.50 fares...., COn011° Q1l $13,805 We are required to assess eligibility for ADA trips. We can attempt to reduce misunderstandings with an educational campaign. * The service area specified in the ADA Plan should be reviewed, but we would serve everyone to the extent of capacity and funds. * Seniors who can use the trolleys should be encouraged to do so, and free rides should be considered. In the items considered in this memorandum, we think that with good fortune we can continue to serve everyone whom we have been serving. However, some persons may have to wait a bit longer for a ride as we develop more efficient door-to-door "routes" that will enable us to make better ute of our resources, Other parts of the program may require attention later but we pereeyplorefer to artet, of the The results fiscalthatequarter before may reveal additional changes that need to be discussed. If so, we will look forward to communicating with you again. -4- S$nior transit Services Couldebe_..~ Caught In Crunch, Study Says- ' A recently published American Association of Retired agencies in eai h of these case sites were intrnktred, Persons (AARP)stud,vfound that inmany communities, Study findingsinclu& transit operators could directly or indirectly displace or refuse servicc to asignificantnumbeiofolderAmericans 4 Most transit systems and aging services providers because they do not have the resources to pro, ide trans- have little operations experience on which to base an portation to both ADA-eligible and old. r riders ADA•impact assessment, This is due to many systems The study, The lo?gvc t of the Aurerwivis with R4jKhties not having to be accessible until 1997. Act (ADAI Regiifronerits on Older Arnrriiap,s: Wr1l Older Persons Lose Motility? set out tooddresstwuquestior : (l) # A majority of systems aumitted they could or would here the elderly going to lose to community paratransit displace older riders because thev do not have the services a> a -osult of the ADA? (2)lfow were the major resources to provide both ADA and aging transit. local aging organizations going to respond, The researchers analyzed 300 individual ADA imple- 0 Most communities do not offer alternative or contin- mentationp!ansandsele^ctedl8communitiesfor in-depth ued service, on a space-available basis, to current analysis and interv'iens. Mhtransit operators and aging riders who are not ADA-eligible. Factor other necessary trips into Agencies that depend on federal While the adv.tntages of producing the formula like grocery shopping money are now learning to stretch additionalser'icesthrough increosed trips to banks, post offices and other these limited dollar as far as pos- efficienciesandcooperationarecleaf, plates for sei cites, some difficulties over sew ial interaction,etc, i'<•k^ turf issues continue to and it 's easy to see r. pi-eproblens. why many elderly , htnwnycases,agen- tronsitproviderscan.t ties assume that coor- keep up with de- t mand, y dination neces<itates .e.~ P givin,gupcontroland;' The lack of ad- t or ownership of their equ,de federal ftlnd• equipment. This, how- ing,tcw,createsa.iur- y'9„t y .n: - ever, is not a manda- den for these agen• tort' aspect of coordi• vies. The unfortunate nation, providers that reality is that a large 1 ~ti•r, ~s, havespentyearsailti- number of federal i`s eating riders, Scratch- programsarecompet- ing and clawing to get Ing for a limited enoughfundingtosur- amount of funding. wive, aren't always All are worthy, but willing to cooperate. some get short- Another so-called changed, turf issue deals with While Congress ridership The aging has Sllbstantiapy in. ThcagfIig110ii'1Wk ii'ris MIONgthefir's t9ih'i,llServices tooOi'rtraP1.4p ltdfl0n network was among creased the authuriza• the first social services lion levels for DOT•suprorted mass Bible. Coordination is an effcctit e programs to develop transportation transportation programs, actli.il ap• onst~er. resources. l~hen the OAA allowed propriations levels have been sig. forthepurchaseofvorisfor nutrition nific-intlybelowthemark TheOAA, Coordinating to Stretch programs in 1969, small tronspotta- too, hasconsistentlybeen oppropri• Funding tion systems serving older persons ited at approximately ;11 percent of oordfnotion has been touted as began to develop it many area ogen. authorization levels for over the Ca tcav to increase sorvio, levels vies on aging (AAAs). As Section l9 decade. without additional federal funding. was enacted, the AAA's experience to Cc nmandv FarscortOncn R=oom Server re~ ac'are, ro9J I I i -ger+daNtl . ~ Agendalteir~-- Federal Aging Transportation FundirVP-rogr p Older Americans Act races earl liQd>~ thrQt~~*h 1hP r~cagram se- Title III nlors. Title ill is an AdmfnlstrationonAglugprogramof Agcrti;em formula grants to finance state and community Medicaid ra!; programs for older persons. It funds trips for older Medicaid is a state run medical assistance pro- persons to nutrition sites, medical centers, shopping gram for which transportation is a required service. centers and ether locations. Actual transit service In general. the Medicaid program will reimburse can be either provided directly or contracted out. states for medically-necessary transportation of Community Services Medicaid recipients, many of whom are elders. Block Grant (CSBG) Section 16 Capital Assistance for Nonprofit CSBG provides funds to states for nutrition, Agencies Transporting the Elderly and Per- for and employment-related services. Costs Agee with rvnsp Disabilities rtin for service to the elderly are eligible. Section 16 allocated funds to private-nonprotlt Social Services Block organizations to meet the transportation needs of Grant (SSBG) the elderly and people with disabilities. Funding Is SSBG funding is awarded on a formula basis to allocated to states on the basis of elderly and state human services agencies. Transportationser- disabled population. in running small transit systems creasing transportation resources. Its primary purpose is to bring made them logical initial grantees in This atmosphere of cooperation persons with disabilities into the rural areas, will stand many public and special- mainstream of life, In keeping with However, in some alleged cases, i ized transit agencies, ingood stead as other civil rights laws, the ADA rec• these rural public transit systems fa- they struggle to comply withthevari- : ognizes that it is not acceptable to vored older riders rather than the ous mandates of the Americans with provide separate but equal services general population's needs, A ten- Disabilities Act (ADA), to persons with disabilities. sion between the aging community The aging community was only as a provider of public transrorta- The ADAr A New Challenge marginally involved in the develop- tion services and public transit agen- nother issue challenging the mentof ADA legislation, though it is ties was born. Availability of transportation re- now attempting to address concerns Even with these initial barriers, sourcesforolderpe•.apleisthe passage raised by theact.Ingeneral, theposi- coordination of transportation re- of the Americans withDisibihtiuActof tiveaspects of the ADA, barring dis- sources is quickly becoming an ac- 19h}(ADA).TheADAis,firstandfore- ! crimisation against people with ceptable alternative method of in- most, a piece of civil rights tegislation dire.bilitiesorinfirmities, should also be beneficial toolder peerple. Nono- cless, there are conceswith the erhal displacement of elders CUSTOMIZE YOUR VEHICLES. tpcit from trawsportation services wh ich a Ncere they have used in the past, Lett erlnp Displacement occurs when 0 tegU , eiders who were recelying spe- Long ng r rialized transit services are no Permanent Adhesive longer offered servi :e d ue to A DA Eeey ro Apply y eligibility guidelines, The ADA's 0 guidelines are clear: age^ alone, is t7uenehiea welcome not consid Bred a d isabli ng cond i- Aea~f Materials Lion, Thus older individuals may Ave s e bedisplaced from transitsorvices to make rooei for people with • Wholesale Prices OrOe Reader Service Sad Number 101 eligible disabilities. 0 El 11 1110 148, =34 Cooofil p rinng effort-; on the pa rtrtofal I paitiesron help 0 stem displacement of older riders N ❑ N ID PRODUCTS • 4717A Adams Rd. ^ Chattvoogs, TN 37343 on public transit services. 12 eommunry r onspcrfo6on Aeeorfer Seoranrer, 0. tuber I "i M f AgeridaNo Nertdalte~~ Geographic Considerations vices for the older population. The patron pra`~yyyy'n n icy pr t here elders live, whether it degree to which the elderly, are de- or~W demur(fr I t W be a rural town, a suburban nied mobility is equivalent to thV1, ?M1~ - - - area or a city, is another issue affect- degree to which they are denied 1lia;rke tot re Srrrate's S a Corrr- ing senior transit services. cess to social and community ser= ' nW*twr4girrFf1-fhrrjk"rfseron fir c~f ,tiexcerp! sections n their "Developments According to the 1990 Census of vices. If homeand community has Population and Housing, 23 million services are to meet the growing so- in Aging: 1992'" Vofnrne I for Ihis ar• older Americans live in metropoli• cial and economic lung-term care title' tan areas, which include cities and needsofourolder population, trans- surrounding suburban areas. Eight million seniors (or roughly 26 Fervent of the elderly population) live in rural areas. Both areas provide unique chal- lenges to aging transit services. Difficulties in provid ing ad equate NO, RURA( p 1 transportation resources to rural el- ders stem. from a number of factors. PTV B~/C First, ruraIpopulationsareoftenscat• o tered across a large geographic area, OQ5 ti complicating the design of efficient and cost-effective transportationser-Q •0 vices. Second, the fares required to support such services are often too W high given the modest incomes of E10F most rural elders. Third, rising oper- LU atng Costs and dwindling federal L7 reimbursements make it difficult to Q recruit volunteers willing to provide Q 2 rides to the elderly. O O O The increase of the aging popula• tioninsuburban communitiescan be ~ip attributed to two overall factors: mi- 0 ~y gration from central cities and aging Oy `y in Place- the desire to remain in the Q homes and neighborhoods in which people have grown old, A 1958 study conducted by the U.& hbd D~~O Conference of Mayors and the Na- tional Association of Counties identi• fled three priority concerns of subur- ban elders: home and community baxii senics, housingand tramportatiom The first two depend on the third. DAVID L. ELLIS Unlike large cities, most suburbs AGENCY, INC. have not developed coordinated 47113 LOCUST LANE ma:s transit systems, partially be- SUITE 101 cause of costs and partially because HARRISBURG, PA i7f 09 of gee ;raphic disperwl. 4nices in (7117) $40.0620 suburban areas have not kept pace (7117) 540.0646 FAX Hith population growth. Without al- tematives,elders must refvon private taxi services, which are expensive. Mobility Is the Key PROVIDING INSURANCE AND RISK MANAGEMENT SERVICES ' n all, it is clear that transporta- THROUGH YOUR LOCAL INSURANCE BROKER tion is one of the most Important links to providing access to local set- CiraieReader5en ,CaraNumeer3t Sip'emaer; Ocrceer 799] Common ry r anaponohon RepoHe I] CITY TOUNCI t s s a O 4 v~ ~ OGC ~ i : F AQWaNo- ._p Apendaltem ~3 No lfi.~l ° ° z CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd V. Harrell, City Manager SUBJECTs RECEIVE A PRESENTATION FROM RESOURCE MANAGEMENT INTERNATIONAL REGARDING AN INTERIM REPORT FOR LONG-RANGE POWER SUPPLY STUDY. BACKGROUND/SUMMARYs The City of Denton has contracted with the firm of Resource Management International (RMI) to prepare a Long-Range Power Supply Study. As part of the Long-Range Power Supply Study, the consultant was contracted to prepare an interim report to summarize its finding in review of the City's gas fired generation facilities, power supply contracts, demand-side management program, and load forecast. The Interim Report will be used as a base for the preparation of the Power Supply study which will identify options available to serve the City's projected loads and perform economic analysis on the various options for conclusions and recommendations for the City's long-range power supply program. RMI presented this report to the Public Utility Board on November 3, 1993. After review of the Interim Report with the City Council, the consultant will begin preparation of the option identification and economic analysis portions of the Long-Range Power Supply incorporating specific comments and directions identified during discussion with the PUB. RECOMMENDATIONSt No recommendations at this time. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTEDs Public Utility Board, City Council, Citizens of Denton, Utility Staff. a PUB Agenda item Power Supply Study Page 2 FISCAL IMPACT] GGGGGG No fiscal impact with this report. Respect lly submitted, L1 yd V. Harrell City Manager Pared by R. E. Nelson, Executive Director of Utilities EXHIBIT It RMI Long Range Power Supply Study (under separate cover) I rw ~n~ rt? M Aov~,a No LONG RANGE POWER SUPPLY STUDY INTERIM REPORT Prepared for CITY OF DENTON, TEXAS Prepared by RmI RrgOLRCk Nl AS ACC MEN T f NTVRNAT10SAL, INC. Unpublislu-d Work 0 Oclober 1993 i Y RMI ,1 / RFSl1(RCk t~f A% \c11t h.. I S i F R\ A l l 11 A A 1 t C( , ~ ~ SJ ~ G7 October 28I1993 Mr. Jim Harder Director of Electric Utilities City of Denton 901A Texas Street Denton, TX 76201 Subject: Long-Range Power Supply Study Interim Report Dear Jim: Enclosed Is RMI's Interim Report (Report) prepared pursuant to Task 5 of our Consulting Services Contract with the City of Denton. This Report summarizes RMI's work in completing Tasks 1 through 6, which includes RMI's review of the City's load forecast, ,existing power pool and sales contracts, and existing as-fired generation facilities. In association with these reviews, an analysis of the technical feasiilit of a cogeneration facility at Texas Women' Y s University was completed. A draft copy of the Report was submitted and reviewed with City staff. This Report document incorporates comments and additional information received in association with the staff's review. In accordance with your request, we will participate in your November 3,1993 Utility Board meeting to present and discuss the findings summarized in the Report. As a result of completing Tasks 1 through 6, we are now in position to work with the City to complete the activity outlined in Tasks 7 through 10. This will involve Identifying power supply options and developing a power supply plan to serve the City's projected needs. We will contact you following the November 3, 1993 meeting to initiate this work. erely, Jo Allen Moore Enclosure 11310 CArn Ak OF TE1AI Hx,lnv~v Nl RriI, 5('rri 355 , Al511-4, Tx 767.11.1026 ,(5121745.511 S • FRr 1512) 345-6534 AlMANv „ti'1 Coll mm,<,OH (1X, 4%1" 11. Nugv,A/ r""11 w. OF 5l, (,wi ~i,CA MN lP,iu Bi ae, Ft. i sra':e ILI LONG RANGE POWER SUPPLY STUDY INTERIM REPORT Prepared for CITY OIL DENTON, TEXAS Prepared by RMI RR6ovacu MANAGEMENT 1 NTRRNATIONAL, INC. Unpublished Work O October 1993 i r a TABLB.A-tT+NTS LONG RANGE POWER SUPPLY STUDY INTERIM REPORT SECTION PAGE I INTRODUCTION 1-1 2 REVIEW OF LOAD FORECAST RESIDENTIAL 2-] COMMERCIAL. . 2-1 INDUSTRIAL . 2.3 GOVERNMENT . 24 PUBLIC STREET/HIGHWAY LIGHTS 24 DUSK-TO-DAWN LIGHTING 2-5 TEMPORARY SERVICES : 2.5 LOSSES . 2- 5 SYSTEM PEAK DEMAND . 2-6 GENERAL COMMENTS ON MODELING 2-6 APPROACH AND METHODS CONCLUSION 2-8 3 REVIEW OF DEMAND SIDE MANAGEMENT SUMMARY OF EXISTING DSM PROGRAMS 3.1 3-1 ~ 4 REVIEW OF POWER POOL do SALES CONTRACTS POWER SALES 41 POWER POOL AND NT CHANGE AGREEMENT , , , , , , , , , , , , , 42 TMPA POWER SUPPLY PLANNING 45 OFF SYSTEM SALES 4-7 DENTON PLANT OPERATION UNDER TMPP DISPATCH 48 4.9 5 REVIEW OF EXISTING GENERATING EXISTING GENE FACILITIES . . 5-1 RATING UNITS . . . . , 5.1 6 CLEAN AIR ACT ASSESSMENT SM MARY . 6.1 COST ESTIMATES TO COMPLY WITH CAA . . 6-11 6-12 7 FUTURE CAPACITY ADDITIONS , . , , , , , , , , SIMPLE CYCLE COMBUSTION TURBINE . . . . . . . . . . . 7.1 REPOWERING OF EXISTING UNITS, NEW COMBINED CYCLE . 4"' 7-3 WASTE TO ENERGY 7-6 7-6 8 NATURAL GAS SUPPLY NATURAL GAS SUPPLY . ' 81 NATURAL GAS PRICE FORECAST,..... . 8.1 8-2 9 TWU COGENERATION PLANT ANALYSIS . I • 1. W,ryn. .T^nE OF CONTENTS LONG RANGE POWER SUPPLY STUDY INTERIM REPORT TABLE PACE 3.1 DSM PROGRAM ESTIMATED MW SAVINGS - 1993.2003 3-4 41 PROJECTED TMPA POWER & ENERGY RATES 4-8 5-1 SPENCER STATION GENERATING UNIT STATISTICS 5-2 6-1 ALTERATIVE NOS PACT EMISSION LIMITS 6-3 6-2 PHASE II SO, ALLOWANCE ALLOCATION FOR DENTON 6-6 7-1 SELECTED CAS TURBINE-GENERATOR STATISTICS 7-2 7-2 IMPACT ON GENERATING UNIT PERFORMANCE BY REPOWERWG OPTION 74 7-3 DENTON GENERATING UNITS 1, 2 AND 3 REPOWERING OPTIONS 7.5 74 DENTON WTE PLANT ECONOMIC ANALYSIS FROM 1988 DENTON FEASIBILITY STUDY 7-7 I FIGURE PAGE 8.1 NATURAL GAS NEAR-TERM PRICE FORECASTS 84 8.2 AVERAGE WELLHEAD PRICES OF NATURAL GAS LONG-TERM FORECAST 8-5 ii Agenda No 93 0~~ Agvdaltem ~7 5 SECTION 1 "INTRODUCTION Resource Management International, Inc. (RMI) was retained to prepare a Long-Range Power Fupply Study. The work to prepare this study was broken into ten tasks as outlined below • Task 1 • Data Request and Review • Tesk 2 - Review Load Forecast • Task 3 - Review of Agency and Pool Considerations • Task 4 - Review Existing Generating Facilities • Task 5 - Prepare Interim Report • Task 6 - Analyze Technical Feasibility of TWU Cogeneration Facility • Task 7 - Identify Options • Task 8 - Economic Analysis • Task 9 - Prepare Report • Task 10 - Presentation of Results Preparation of this Interim Report summarizes activity In Tasks 1 through 4 and completes the requirements for Tasks 1 through 5. RMI staff have re0ewed a wide range of documents descr;bing existing power supply agreements, accounting and financial reports of past operations, operating reports on Denlon's power plants, and load information. Meetings with City staff have been held to discuss condition of existing facilities and to gain a better working knowledge of the information presented in the documents. RM1 also observed the operation of the Spencer Plant and met with the plant staff. The results of RMI's review are summarized in this Report. In association with the Investigation and reviews included in Tasks 1 through 4, RMl employed Lutz, Dally do Brain to complete a technical feasibility analysis of installing a cogeneration fadlity at the Texas Women's University (l'WU) campus. This cogeneration facility would provide for the electrk and steam requirements to the University and supply the surplus power to the Denton system. The results of the analysis are summarized in Section 9. Information developed from this review will form the basis for economic analysts of alternative power supply plans. RMl appreciates the assistance of numerous Denton staff In providing documents and participating in working meetings. It is anticipated that this interaction with staff will continue throughout preparation of this power supply planning . activity. t 1.1 yyyyyy~~'~ f' ~y P SECTION 2 REVIEW OV LOAD FO C T An important part of power supply planning is the development of the load forecast used to forecast system requirements. As part of RMI's review of the power supply plan, a review of the methods used by the City of Denton's staff to forecast system requirements was made. This review included- Identification of the data used in the models and the source3 for that data. ► Review of the assumptions made for modeling consumption for each rate class. ► Identification of assumptions made regarding power supply cost used in the lead forecasts. RMI reviewed the load forecast prepared by l7enton's staff, and submitted a list of questions to the staff. Based on the review of the forecast, the responses to the information request, and a visit to the offices of the utility and interviews with staff, the following observations were made. Subsequent discumlons w4th staff have led to the consideration of revved approaches to prepare components of the load forecast. Denton has recently joined the Cities of Bryan, Garland, and Greenville to participate in an American Pubtic Power Association (APPA) Deed Grant program to apply the technology of Neural Information Processing System (NIPS) to project load requirements. This Is a research project and will attempt to develop a new methodology for long•tcza forecasting. The (YIPS process emulates the information processing approaches used In living biological systems, allowing a machine system to learn complex tasks by example, with minimal external intervention The project will be performed at Texas A&M University and is currently under way, This project will test the forecasting methodology by applying it to the four cities' systems. RESIDENTIAL Approach Residential customers and residential kWh were modeled Independently. The annual number of customers was estimated based on the relationship of the historical number of residential customers to the population during the four years 1989 through 1942. i'rojections of population were provided by the City Planning Department. Residential kWh was estimated also on population during the four years 1988 through 1991. 2-1 i I REVIEW OF LOAD FORECAST Comments 't'here are several generally accepted methods to forecast consumption. One is to model energy consumption as a function of the number of customers and other independent (explanatory) variables. Another is to model the usage per customer as a function of explanatory variables and predict number of customers Independently. In this method, the total consumption is developed by multiplying the forecasted number of customers times the forecasted usage per customer. Both of these methods recognize that the number of customers is a primary determinant of energy usage. Denton's method, while using a similar relationship through population, would benefit by Involving the rumber of customers more directly In the forecast of energy. In other words, the number of customers should be forecasted, then the number of customers should be used in the forecast of consumption. The use of population to forecast number of customers is a reasonable approach. This model, however, should use a longer historic period so that the relationship between customer and population can be defined with a higher level of confidence. The current forecast uses four yeah. Since annual data h used, this is only foitr data points. A period of eight years should be considered a minimum, and a period of ten years is standard. Residential energy consumption modeled residential kWh usage as a function of population. The estimation of energy consumption could be improved by increasing the number of explanatory variables. Again, one key variable is number of customers, whether it Is handled within the equation or forecast separately. Some explanatory variables that often result In significant relationships are: ► Heating degree days ► Cooling degree days ► Per capita income ► Price of electricity Heating and cooling degree days are important explanatory variables for estimating residential consumption. Since these variables were not included in the forecast, the forecast is not normalized for abnormal weather. Additional variables which may be significant Include: ► Price of competitive fuels such as natural gas. ► Stock of specific appliances such as air conditioners. 2.2 4 REVIEW OF LOAD FORECAST Dummy variables to pick up exogeno* ecorlq~?ic Impacts syth u the major economic slump in 1985. Variables to represent DSM programs The energy forecast for the residential class was based on annual data for 1988 through 1991. As discussed earlier, four data points are insufficient to establish a statistical relationship. A period of five to ten years of monthly or uq arterlX data is generally used in forecasting consumption. In addition, the historic data should include observations up through 1992. COMMERCIAL Approach Commercial customers were forecast based on the relationship of annual number of customers to population from 1985 to 1991 Commercial consumption was also estimated based on population growth. Comments The same comments made for the Residential models are generally applicable to the Commercial models. Heating and cooling degree days are important variables also for the Commercial class since Giese customers often have significant usage for heating and air conditioning. However, the per capita income variable may be replaced with an employment variable or estimate of gross domestic product for the region. The model of total commercial consumption should also include a variable for population, however, correlation between the Independent variables should be checked. The forecast may also be improved by removing the historic consumption of any large customers in this class who have left the system or migrated to other classes and then making additions for new large customers, such as the Exposition Mills Mall and the PeterBilt Headquarters, after the forecast has been completed for remaining customers. Historic consumption should be examined carefully and significant increases or decreases Identified before modelling. The difference between the commercial and Industrial classes is one of size, not actu•tl commercial/industrial characteristics. Commercial and industrial customers often have different usage characteristics. Denton should look at separately Identifying commercial and industrial customers and txamening their load characteristics to determine if they should be modeled separately. 2.3 a S REVIEW OF LOAD FORECAST INDUSTRIAL r'G'"' iN1 93~D53 Approaches-3 Industrial customers (actually large commercial and industrial) were projected using an exponential trend based on the historic period 1985 through 1991. No specific adjustments were made for Texas Instruments' closing or for the addition of the water treatment and reclamation plants which were reclassified from Government to Industrial In October 1991. Th2 energy forecast was based on a 2.2 percent growth rate which was generally derived based on growth between 1985 and 1991. Comments This class consists of approximately thirty of the utility system's largest commercial and industrial customers. These customers account for approximately thirty percent of the total energy requirements for the year, Because of the different usage characteristics and the large size of the customers, the loads of these customers should be projected separately. Each customer should be contacted independently to discuss their long-range building and expansion plans, To the extent that the customers agreed to share this information, the utility an better plan for the expansion or contraction of major loads, other customers should be modeled by S.I.C. groupings, using eiplanatory variables appropriate for that type ors E dusiry. Again, the historic period should be longer to improve statistical GOVERNMENT Approach The number of customers for the Government class was estimated based on a logarithmic trend from 1988 through 1992 The consumption was based on a five percent growth rate which was an estimated rate of growth In usage based on historic data, comments Certain water treatment and water reclamation plants were reclassified in October 1991 from Government to Industrial class, Before estimating government consumption, the consumption for those customers should be removed from the historic data. The types of customers on this rate should be examined to identify appropriate explanatory variables for forecasting this class. To the extent that the main usage In this class Is for governmental buildings, explanatory variables such as heating and cooling degree days may be significant variables. Depending on the make-up between local, state, and federal government offices, a significant variable may also Include population. Again, the number of historic data points should be longer to Improve statistical relationships. 2-4 I REVIEW OF LOAD FORECAST PUBLIC STREET/HIGHWAY LIGHT:; 3 Approach /3 ~ G7 The energy forecast for this class was based upon the historic trend from 1989 through 1992 The forecast of number of customers was based upon the historic relationship of customers to kWh and was calculated from the forecast of kWh. Comments This class has a relatively small contribution to the system forecast. However, the forecast may be better defined by evaluating the relationship of number of street light customers to growth In population. If the number of lights is kni wn for these customers, this may be projected. As long as the replacement of Inefficient lighting has completed its cycle, then the relationship should be based primarily on growth in the service area. DUSK-TO-DAWN LIGHTING Approach Dusk-to-dawn lighting also represents a small portion of the total system forecast. The customer forecast was based on a simple linear trend for the historic period 1990 to 1992 The kWh were forecast based on a linear trend from 1985 through 1992. Comments Linear trend analysis on customers and kWh may be suftldent for this days of customers. City staff may want to review whether a relationship exists with population. The periods of time used to trend these variables should be long enough to identify such trends. TEMPORARY SERVICES Approach The number of customers taking temporary service was forecasted based on the tale of growth in kWh. The forecast In kWh in turn was forecasted at the same rate as the system growth rate before adding In temporary services. The assumed relationship is that temporary services wpi grow at the same rate as the system grows. Comments Since this Is a relatively small contributor to total system requirements, a simple linear trend or using an annual growth rate equal to the system growth rate is appropriate. 2-5 t a' REVIEW OF U)AD FORECAST LOSSES R i System losses were based upon historic average system'losses'."''' Total System Energy Requirements C After the forecasts of kWh were developed for the classes, they were aggregated and adjusted for losses to arrive at the total system energy requirements. SYSTEM PEAK DEMAND The peak demand forecast was developed based on a review of hlstorlcal growth In peak demand. The basis for the growth rate was not documented. The peak demand, therefore, has no direct relationship to the forecast of energy requirements. No explanatory variable for weather, economic conditions or other conditions were specifically used in the forecast of peak demand. A load factor was calculated and compared to historic load factors to determine whether the load factor falls within acceptable ranges, assuming anticipated improvements in load factor from increased implementation of Demand-Side Management (DSM) programs designed to clip system peaks. No specific adjustment for D6M was made to the peak demand forecast. Comments A method often used to forecast peak demand Is to use the forecast of system energy requirements and average annual load factor to develop the forecast of peak demand. The advantage of this method over using the peak demands themselves is that the energy forecast has been developed based on explanatory economic and demographic variables and is normalized for variations in weather. Therefore, the forecast of energy reflects what can be anticipated to occur based on normal circumstances. If a forecast for peak demand Is based on recent history of peak demands which have been under or overstated due to abnormal weather, then the forecast will be biased. It would be appropriate for Denton to look at histork load factors and develop a peak demand forecast based on the energy forecast. This peak demand forecast can then be adjusted based on anticipated DSM programs which are designed specifically to reduce system peak usage. It is Important, particularly for a system like Denton which is attempting to reduce its peak demand, that targets be set for peak demand reductions as the result of implementing DSM. The programs should be Identified with target demand reductions to that these can be incorporated into the peak demand forecast. it is helpful to provide the forecast results both with and without demand reductions for load management programs. 2-6 I . k REVIEW O OAD RECAST GENERAL COMMENTS ON MODELING APPROACH AND META_. ` As outlined in the above discussion, the present forecast does not incorporteous statistical analysis and is not based on econometric methods. The forecasting approval used in the past, relying on trending methods, was typical of past forecasting methodologies for small and medium size systems. As utilities grow, their requirement for a more sophisticated forecasted model grows to respond to the need to make significant economic decisions. Preparation of these more sophisticated forecasts requires additional cost and time. The following discussion Identifies a number of Important characteristics typically included in forecasting today. Denton can increase the efficiency and quality of its forecasting process, particularly in the forecast for the later years of the planning horizon, by including more expLmatory variables. These independent explanatory variables should be selected based upon the availability of data, the causal relationship between the independent variables and derendent variables (customers, kWh), and the significance of the statistics which assess the strength of that causal relationship. Each class which has weather sensitive usage characteristics should include weather related variables. Larger Commercial and Industrial customers should include variables with relevant economic and demographic variables. Common sources for this data include the US. Department of Commerce Bureau of Ecoc.omlc Analysis, the U. S. Department of Labor Statistics, the National Oceanic and Atmospheric Administration (N.O.A.A.), the University of Texas Bureau of Business Research, and the Texas Employment Commission. In addition, there are various forecasting services which project data by region, state, imd county. These forecasts can be used to drive the forecast of the explanatory variables. It is particularly important that the historic data used for modeling class usage be reliable and consistent. Any model is only as good as the data upon which it is based. Models must have accurate historic data as well as proper assumptions. , developing the models before the forecasts can yield significant results. The forecasts should be made for each rate class to the extent practical, since rate classes are generally designed to group customers with similar usage characteristics. In Denton's case, residential classes should be combined since there appears to be migration between these rates. Denton may want to review the basis for these rates (RI and R2) the next time electric rate design Is addressed. There appeared to be a particular scarcity of historic data. Denton shou" review its current data and develop a historic database for each rate class going back in history as far as possible. Until such time as complete data is available, classes will have to be aggregated for the purpose of the forecast. The historic data itself should be reviewed for accuracy. It is not unusual for historic book" data to contain adjustments and other anomalies which may not affect accounting, but do affect the ability to use the data in econometric forecasts. Each class' number of customers and kWh should be reviewed to identify observations 2.7 t a r i 1 !ti ~A[)FORECAST /G,e;~67 which are inconsistent with previous or following observations. Such "ou fers" should be investigated to determine the cause, and adjustments should be made when appropriate. Once the historic database, with a full set of explanatory variables, has been developed and corrected for outliers, the models can be established. Statistics should be examined to test the quality of the explanatory variables and the equation itself. The statistics for the individual equations used in this forecast were not available for review. Such statistics are important indicators of the ability of the model to explain the relationship between the independent and dependent variables. The staff should record those statistics for the equations which are selected and evaluate the statistics against generally accepted levels for accepting the validity of the parameters. It is particularly important to be aware of such statistics as the Durbin Watkins statistic which wilt indicate the degree of autocorrelation present in the equations. Autocorrelation refers to correlation in the error terms associated with the forecast. Non-correlated error leans are one of the basic assumptions of regression analysis. Autocorrelation can be caused by several factors, and can be adjusted for automatically using many of the modem forecasting packages. Without correcting for autocorrelation, the forecast will be biased. A forecast is dependent on the quality of the projecdon of Its independent variables. Variables such as heating/tooting degree days are carted forward and projected based upon normalized weather. The projections for economic and demographic variables can often be obtained from state forecasts produced by the major universities or from forecasting services. Since the economic and demographic variables will have a major effect on the projecdon, it is important to have a realistic and rigorous forecast. One of the more important independent variables used is the population variable which is used to project the number of customers. It is important that the forecast of population be established in such a rigorous manner as to be significant over the forecast horizon. CONCLUSION Past forecasts developed by Denton have primarily relied on trending. The only explanatory variable currently being used is a forecast of population supplied by the City Planning Department. The forecast should be improved by testing more Independent variables which are anticipated to have a causal relationship to the dependent vartaJe (kWh and customers). The use of expanded models with more rigorous evaluation of the statistics should result In an improved long range forecast. Since the purpose of a load forecast in a power supply plan is to be able to look out five to ten years for capacity expansion consideration, it is Important that the forecast be reasonable In that time horizon. Typically, utilities develop forecast projections of customers and consumption by individual rate classes based on expected values for the independent variables. Sensitivity analyses should be Included such that a high and low forecast are also developed so that at any point in time, the system planner can review the current trei 1 of variables and Identify with one of the three forecasts. Furthermore, the forecasts should be updated each year based on the most 2.8 r r A R MEW OP i.OAD "ECAST current forecast of the economic and dependent explanatory variables 'The aIcy of the models should also be tracked to determine how good a Job the forecast Is doing in predicting actual usage. Denton should also evaluate the purchase of a more complete forecasting software package. A forecasting package should include good data handling capabilities for maintaining and manipulating data files, including importing and exporting of data. It should also present a good menu of diagnostic statistics, graphing capabilities, and options to adjust data for autocorr elation. Of particular concern is the reported lack of historic data and inconsistencies in the data that is available to the staff to use in the forecast. Historic data for at least ten years should be developed and maintained in a forma that will support the econometric models used in the forecast. This will require a signVicant effort by Denton to establish If the data are available in hard copy form in archives, but once established will require little time to maintain. If the data are not available In any format, then procedures need to be established to maintain this data In the future. Once Denton establishes a more sophisticated forecasting system, it will be easier to prepare and update in subsequent forecasts. The establishment of a complete historic database and more complete forecasting procedures will allow the analyst to spend more time conducting sensitivity analysis and evahiating alternative scenarios. This will provide Denton's planners and polirinu,cers with better information upon which to make decisions about the future. Before any major commitments are made by Denton, RMI recommends the staffs forecast be expanded to use methods representative of those generally used If, the Industry to produce long-range forecasts. This will produce a long-run forecast and a range of potential loads consistent with current electric utility practices in developing long-term forecasts of demand and energy requirements. It is understood that Denton staff is Initiating activity to implement a forecasting program incorporating many of the Issues outlined in the previous discussion. For purposes of the subsequent Tasks required to prepare Denton's Lang-Range Power Supply Study, Denton has directed RMI to use Its current toad forecast and to evaluate the sensitivity of appropriate power supply plans to higher and lower projected loads. Should a revised forecast be completed prior to completion of the Study, Denton will be consulted to determine if additional analysis should be undertaken to Incorporate the results of the new forecast. 2.4 a a k SECTION 3 67 REVIEW OF DEMAND SIDE MANAGEMENT As part of the Long-Range Power Supply Study, RMI reviewed information from Denton regarding its Demand Side Management (DSM) programs. The purpose of RMI's review was to Identify possible new DSM programs for Denton's consideration. This review did not evaluate potential programs. Denton has been aggressively evaluating DSM as a means of reducing the cost of power in the future. In the past, purchased power from Texas Municipal Power Agency (fMPA) was based in part on a peak demand charge of $110 per W. To the extent the peak demand was reduced through DSM, Denton saved the difference between the $110 per kW and the cost of the DSM program used to achieve the reduction in demand. Denton recognizes the benefits and has w,ed a variety of public information approaches to promote its DSM programs. Ads in local newspapers, bill stuffers, Information placed in racks at the Denton City Hall and library have been involved In the mass communication to the system's customers. Direct mail to both customers and contractors/instaflers hay: promoted different programs with follow-up phone calls to provide additional Information. Also, explanations of DSM programs are promoted through special events such as Public Power Week. Denton Is currently preparing a DeinandSide Management Strategic Plan. The Strategic Plan has three main objectives; Review and evaluate exi3dng programs. Review and recommend new programs. Recommend softw.•e to use Indevelopingan Integrated Resource Plan (IRP). The Strategic Plan to evaluate DSM in the context of an Integrated Resource Plan is an Important step towards ensuring the least cost mix of future supply options and DSM. The following discussion summarizes RMI's review of Denton's existing programs. Following the summary are comments for Denton's consideration regarding DSM programs. SUMMARY OF EXISTING DSM PROGRAMS Denton has implemented a nvmber of DSM programs targeted primarily to reduce peak demand. From RMI's review of the Information provided, Denton has Implemented the following DSM programs: 3.1 +r A i s REVi>`W OF DEMAND STM CEMENT Voluntary Load Reduction Program This program Is available to customers who agree to reduce their peak demand by a minimurn 100 kW upon request by the City. As of November 1992, this program had approximately 16 participants. The peak demand reduction for 1992 was 3.9 MW at a cost of approximately $33 per kW. This resulted in an estimated swings in purchased power cost of approximately 5.301,000. Since the program began in 1988, this program has produced net savings of approximately $2.1 million. The program provides a credit to participating customers of $24 per kW or $12 per kW based on the length of time interrupted. Summer Sense - Air Conditioning Cycling Program Denton cycles air conditioning on a voluntary cycling program. The air conditioners are cycled approximately 7Ye minutes per each 30 minute period. Approximately 2,757 air conditioners are being controlled by the City, resulting In a peak demand reduction of 1.62 MW at a cost of approximately $98 per W. Estimated annual savings from this program are $19,465. Customers on this program receive a credit on their bills during the summer peak months of June through September. The credits are based on the tonnage of the air conditioners being controlled. Rate Design Denton also .has Time-Of-Use Rates for residential and general service customers. These rates are voluntary, but a customer electing to be put on the Time-Of-Use Rate must stay on that rate for a minimum of 12 months. In addition t) Time-Of-Use Rates, the City also offers an Interruptible Primary Rate as well as a Thermal Sto-age Incentive Rate. The Interruptible Primary Rate provides reduced demand and energy charges for customers over 1,000 WA who agree to be Interrupted, The Thermal Storage Incendve rate provides incentive payments for demand shifted off peak througl. the installation and use of thermal storage. At preterit, there are no customers on these Met Appliance Rebate In addition to the above programs, Denton also offers rebates for the installation of high efficiency air conditioners and heat Pumrs, During Fiscal Year 1992, this program was responsible for improving efficiency In approximately 541 tons of air conditioning, resulting lo estimated savings of 308 kW. Denton rebated 531,858 to customers and $4,670 to dealers during FY 92. Assuming a ten year average life for these appliances, ibis program has a cost of approximately $12 per kW per year. 3.2 r REVIEW 0 bl /fir fiCNFMErrr Comments Denton has a number of DSM programs now in place. These programs are currently being reviewed as part of the Strategic Plan. In January 1943, the first of the reviews, for the Voluntary Load Reduction MR) Program, was issued by staff. This evaluation, while noting the success of the program, identified some areas for improvement. Of most concern I is the issue of "free-ridership", or customers receiving compensation for actions they would 1 take regardless of whether there was an Incentive. The staff's recommendations to improve the methods in which compensation is determined are appropriate and, if not already implemented, should be considered to Improve the cost/benefit of the program. The staffs Strategic Plan also calls for more focus on commercial and industrial customers. These customers can potentially yield much greater savings per customer than residential customers, resulting In less administrative cost per kW. DSM programs for these customers will emphasize thermal storage and high efficiency, variable speed motors. The Strategic Plan also recommends commercial and indL~trial customer energy audits to assist in identifying potential loads for load managr,nent. Staff is also researching energy efficient lighting progTarm• Lighting programs can be cost beneficial, however, they are more conservation-oriented than peak clipping measures. Denton will need to evaluate the cost/benefits of these programs as well as the rate impact as consumption per customer declines. This strategy is appropriate, and Denton should proceed to evaluate how best to expand DSM In these customer classes. Denton's Time-Of-Use, Interruptible Primary Service, and Thermal Storage Incentive Rates have no customers at Ihis time. These rates have been In effect since October 1992. The lack ^f "licipation may indicate that the rates are not properly structured and/or there needs I to be a plan to more aggressively market these services. DSM programs will not be successful unless properly marketed. This includes ongoing marketing to mintain interest In the programs once the programs are in place. Denton's Swims er Sense Program (Air Conditioning Cycling) is another program about to undergo review. The cost/benefit on this program hrs been marginal, and with the revised avoided cost sta.-dard, the program will probably not be justified as It now operates. This program will need to be reviewed carefully. One factor leading to the marginal status of this program may be the level of Incentives given. The credit for participation is $10.00 per month for up to five tons, and $2.00 per ton for larger units. The $200 per #on may be high, and the $10.00 for a two and a half (2,5) ton unit ($4.00 per ton) should be reviewed to determine if that level of compensation is necessary. This rate also has a provision that the credit cannot exceed fifty percent (50%) of the bill. This 1lmit could be lowered to twenty percent (20%) or some other appropriate level. These are a few examples of the review which should be undertaken. This program has been successful for some utilities, so 10 ' should be carefully evaluated before discontinuing. Adding water heating cycle switches may Improve the cost/benefit of the program by allowing more reductions per switch. 3-3 j x a tl~~~t~TxxrxCEMENT Denton has projected demand reductions associated with the DSM p~ rods, 'these estimates of megawatt savings are presented below. TABLE 3.1 DSM PROGRAM ESTIMATED MW SAVINGS 1993-200.3 1993 1994 1995 1996 1997 1998 1999 t201..000022W1 2002 2003 VLR 2.5 3.0 3.2 3.5 3.5 3.7 3.8 4.0 4.0 Cycling 1.5 1.5 1.5 1.4 1.3 1.2 1.1 1.0 1.0 TOU -0- 0.3 0.5 0.8 1.2 1.3 1.4 .1.5 1.5 1.5 Appliance 0.3 0.4 0.5 0.6 0.7 0.8 1.] 1.2 1.3 At this time the savings are rough estimates. As Denton gathers more information and obtains bets-- software to model the programs, the quality of the estimates will improve. Denton did not specifically include DSM savings into the load forecast. In the next planning cycle, DSM should be incorporated with the forecast process. RMI offers the following comments regarding the DSM programs. ► Denton should formalize a commercial /industrial energy audit program to identify specific customers with potential for peak demand reducHons. The program should be structured to evaluate these customers' usage characteristics and to work with these customers to reduce peak demand. ► A review of the methods used to calculate the cost/benefit of the Air Conditioning Cycling Program should be made. In addition, a program to check switches to determine if they have been disabled should be implemented. Also, the incentive proMed to participate in this program should be evaluated to determine if lower Incentives would significantly reduce participation. ► Denton should.investigate the addition of water heater cycling to the air conditioning cycling program. By controlling the water heater in addition to the air conditioner off of the same switch, the City can improve the demand reduction per point and improve the cost/benefit ratio. ► Denton should examine building codes and determine if there is an opportunity to improve building codes to eliminate the need to retrofit for inefficient appliances and insulation standards. 3-4 n ROIWA -bL~dlA,, bf9&i~iANAOMENT - f - t-- Denton should condue t an applia,xe saturation stu y tq'Etetermfne the present stock of appliances and to monitor growth in types of energy consuming appliances. This infonnation will be useful in developing DSM programs for the future by identifying trends in load growth at the source. Denton should evaluate expanding its metering program to a bas:c level of load research rased on statistical sampling. This will provide valuable infonnation to monitor load growth, plan DSM and also provide valuable information for conducting allocated cost of service studies to design rates based on cost considerations. Denton should review the level of credit provided on the Voluntary Load Reduction program. A wider menu of choices would increase participation. The level of credits should also be evaluated against current avoided costs for new supp!ies. Denton should complete its integrated Resource Plan and update annually to consider supply side and demand side options. An integrated review of these options will allow Denton to most efficiently serve its customers. Denton should continue its review of existing programs and fine tune its Strategic Plan for DSM and associated targeted savings for each year of Denton's planning horizon. It will be important to erablish, as early as possible, a database to track the costs and demand savings of each program. Thts is not only important for assessing the cost/benefit of such programs, but will also be an important -m,*a in future forecasts for generation planning. Denton should also carefully monitor the load forecast in its consideration of DSM. Currently, in the most pessimistic case including 20 percent reserve margin requirements and fu7m contract sales, new capacity will not be required until some time in 1998. The timing of new capacity requirements has two effects on DSM. First, it affects the avoided cost used for cost/benefit screening of programs. Second, it affects the types of programs which Denton should pursue. If new capacity is not needed for another 5 to 10 years, Denton should evaluate its DSM focus to determine if peak clipping strategies are really needed or if It may be better to fund load shifting and valley-filling DSM programs. For example, it may be more appropriate for Cenion to be marketing heat pumps and electric water heating than air conditioning cycling and interruptible rates. The bottom line will be to improve system load factor. Denton should improve its load forecast and then, based on the estimate of when additional capacity Is needed, develop a DSM Flan which fits the timing of system requirements growth and allows sufficient time to ramp up DSM programs required to reduce demand. To the extent the need for new capacity is suh1dently long into the future, then different DSM strategies other than demand reduction should be evaluated. 35 0 ~Jl / 6 .?7 SECTION 4 REVIEW OF POWERU POOL & SALES CONTRACTS This section provides a summary of the operational aspects of power supply contracts affecting Denton's power supply situation. Denton is one of five members of the Texas Municipal Power Pool (TMPP) and one of four members of the Texas Municipal Power Agency (TMPA). The TMPP was formed in 1963 with three municipal members (Bryan, Garland, and Greenville) and Brazos Electric Power Cooperative (Brazos). Denton joined TMPP in 1969. The TMPA was formed to provide the four municipal members of TMPP the opportunity to participate In generation projects that might not be economical and/or feasible for them to individually develop. This joint participation approach was applied with TMPA's acquisition of a 6.2% interest In the Comanche Peak nuclear plant. TMPA's ownership interest, initiai]y acquired in 1979, was purchased by Texas Utilities in 1988. While membership in TMPA affords the opportunity to diversity fuel mlx and allow participation in increments of generation units, it does not preclude any member from its own development of new projects or participating In projects with or purchasing power from non-TMPA members. For purposes of this report, the following contrasts have been reviewed and summarized in this section: 1. Power Pool and l~e Amore m nt dated as of February 1, 1982 by and between the City of Bryan, Texas; the City of Denton, Texas; the City of Garland, Texas; the City of Greenville, Texas; the Brazos Electric Power Cooperative; and the Texas Municipal Power Agency. 2. Power Saks Contract between Texas Municipal Power Agency and the City of Bryan, Texas; City of Denton, Texas; City of Garland, Texas; City of Greenville, Texas, dated as of September 1, 1976 with one executed, unnumbered and undated amendment of section three. We understand there is another amendment being considered, but we l i t Ye not reviewed it. In addition, RMI has reviewed TMPA's power supply plans as presented in its Official Statement dated May 20, 1993, for its Refunding Revenue Bonds, Series 1993. Aspects of TMPA's plans which may have an impact on Denton's long-Range ljower Supply Study as a result of the Power Sales Contract are summarized in this section. 4-1 a r k REVIEW Oil Pdki pool ZS ALES Corrrw~crs 3 _ .~~/sn7 POWER SALES CONTRACT The following is a summary of certain terms of the Power Sales Contract. Section 1 - Term of Contract (page 1) The initial term of the Power Sales Contract is for a period of thirty-five years, or until such time as all the debts of TM'A shall have been paid. As a result of TMPA's refinancing of bonds, the Refunding Revenue Bonds, Series 1493, maturities on these bonds have been extended as long as September 1, 2017. Denton's original 35-year TMPA bond commitment was scheduled to expire in 2011. Section 3 - Sale and Purchase of Power and Energy (per amendment) Each city including Denton, purchases and receives from TMPA all the power and energy it requires in excess of the following: (i) Generation from facilities owned by it on October 7, 1976, provided the rated capacity of such generation has not been increased more then ten percent over any two-year period (unless all parties to the Power Sales Contract waive this ]imitation). (ii) Generation from facilities incidental to the disposal of solid wastes, which Is constnxted after October 7,1976, and which is owned by one or more of the parties to the Power Sales Contract. (iii) Generation from additional facilities, provided that the rated capacity of any individual unit does not exceed 3 MW, the cotrobined rated capacities of all such facilities owned by one city do not exceed 5 MW, and the additional facilities are not fueled by lignite, coal, natural gas, ol(, nuclear fuel, or any purchased fuels. The payments to TMPA may not be reduced in the event a city elects to construct such facilities. Denton's hydroelectric facilities provide generatlon to Denton pursuant to this provision. Section 5 - Delivery of Power and Energy TMPA provides the transmission service to Denton's points of delivery in or near Its electric system. SeOlon 7 - Rates and Charges TMPA Establishes rates and charges which are : (1) non-discd minatory, and (2) fair and reasonable, and based upon the cost of providing the respective service, and (3) adequate (after taking into consideration other available funds). 42 gg F ti ~r~ J Pi . ' REVIEW OF POWER POOL~& SALES CONTRACrS The cities are charged for power and energy through a demand and energy charge determined from the TMPA annual budget. TMPA's bond resolution requires TMPA to establish rates annually that produce net revenues equal to at least 1.25 times debt service. The monthly demand charge is determined by adding all fixed charges including debt service and bond coverage requirement and dividing by the net TMPA capacity and by 12. Each city is allocated annually a portion of the net capacity based on its prior year contribution to system peak. Each city pays this monthly demand charge regardless of its actual individual system requirement. The annual energy charge rate is determined by dividing the variable portion of the TMPA annual budget by the estimated energy production for the year. The monthly energy charge billed to each city is determined by multiplying actual monthly energy consumption by the annual energy charge. Section 13 - Project Approval and Rights of Cities When a Project is Not Approved From time to time TMPA may propose various types of projects, including. 1. A Development Project which may include one or more of the following: (t) Repairs, replacements, or modifications to an existing generating facility owned in whole or in part by TMPA, and which are designed to increase or maintain an operating efficiency of the facility. (ii) Preliminary and developmental work to determine whether any work should be undertaken as a Project, or engineering, legal, and financial studies in connection with the planning, development or utili.,ation of power resources. (iii) Any purpose for which proceeds of Bonds may be expanded under TMPXs enabling act, except for a Project. TMPA may issue Bonds upon approval of the TMPA Board to provide funds for a Development Project, but the approval of Denton and the other cities is not required. 2. A "Project including one or more of the following (i) Any power generating facility (or interest therein) to be constructed or acquired by TMPA as well as fuel therefor and any transmission required to connect or interconnect such generating facility. (it) Any addition or improvement to a power generating facility which is then owned, in whole or in part, by TMPA. (iii) Any contract right to purchase or receive a power supply or transmission capacity (a) by the making of a prepayment of capital costs which are associated 4-3 f u owl REVIEW OF t'UWER OL,* COM'RACfS with the supply or capacity so purchased, (b) the execution of a take-o -pay contract having a duration of more then ten years, including any renewals thereof, or (c) the execution of a contract to purchase power and energy on an all-requirements basis. The term does not include any facility financed with proceeds of special contract obligations as permitted in the Bond Resolution. 3. 'System Developmentand Reliability Expenditures" which TMPA determines, under prudent utility practices, for. (i) Transmission and related facilities to increase the reliability. (u) The exploration for, development of or acquisition of a fuel supply In order to provide fuel for generating facilities which are not then owned or in the process of construction for or on behalf of TMPA. (iii) Repairs, replacements, or modifications to an existing generating facility which are designed to increase the rated capacity of such generating facility (owned in whole or in part by TMPA or under construction by it). No approval of the cities is required for the issuance of Bonds for a Development Project. Prior to the issuance of the initial series of Bonds'to finance a Project or to finance System Development and Reliability Expenditures, TMPA is required to submit a written notice to each city containing a general description of the Project proposed, the projected sources and uses of funds in connection therewith and a statement of TMPA's opinion that such proposed Project is necessary for TMPA to meet its commitments under the Power Safes Contract and is economically feasible. Each city is required thereafter to notify TMPA within sixty days of its approval or disapproval, and failure to ratify TMPA within such period Is deemed to constitute approval. If all of the cities indicate their approval, or are deemed to have approved, TMPA may issue 1~onds therefor without the necessity of any further approvals by the cities. Any city disapproving a proposed Project is required to elect one of two options. Failure to timely communicate to TMPA the election of an option is presumed to be an election of Option Two. The two options are described below: OPTION 1. If any disapproving city elects Option One, all cities shall thereafter be entitled to schedule and receive the same portion of the available power and energy from TMPA as their respective energy requirements, and each city is obligated to pay TMPA the same percentage of TMPA's costs. OPTION 2: if any disapproving city elects Option Two and no disapproving city elects Option One, the disapproving city shall take or pay for an amount (not a percentage) of power and energy equal to the amount of power and energy 44 .•;0 REVIEW OF P04VEtt t lE SLF COrJTRACfS Purchased by such city from TMPA during the corresponding mont i'of the twelve consecutive month period preceding the calendar month of thr effective date of the exercise of this Option Two, or such other amount as from time to time be agreed upon by such city, TMPA and the other cities at the rates and charges established under the Power Sales Contract. The amount due from each city after any city elects Option One and the amount due from any city which elects Option Two is payable Irrespective of whether any power and energy is delivered or made available for delivery. If one or more cities disapprove and elect Option Two, the cities which approved a proposed Project may notify TMPA of their desires to commence the project, and if TMPA determines that the proposed Project is still feasible, it may issue bonds therefor. If any disapproving city elects Option One, then no additional bonds may be issued for such proposed Project or any future proposed project. Section 14 - Debt Service Guarantees; Operating and Maintenance Expenses Each year, TMPA establishes the percent obligation for each city's share of payments for debt service, operating and maintenance expenses, and other obligations. Initially, Denton's percentage share was established as 20.34 percent; typically, this percentage share has varied between 20 and 23 percent. Currently, the percent share is 22 percent. POWER POOL AND INTERCHANGE AGREEMENT This Agreement was executed on February 1, 1982 to establish the Texas Municipal Power Pool among the utilities of the City of Bryan, Texas; the City of Denton, Texas; the City of Garland, Texas; the City of Greenville, Texas; the Brazos Electric Power Cooperative; and the Texas Municipal Power Agency. Section 3 - Objectives The objectives and benefits of the pool are: Mutual assistance in time of emergency Coordinated operation Sharing reserves Exchange of economy power and energy Economic dispatch Generation and transmission facility planning Joint participation 4-5 f REVILW,OFPOWER POMA NTTRACIS Section 7 - Pool Facilities a`~w67 Each party dedicates to the pool such facilities of their respective systems, as deemed appropriate by such party, that are mutually beneficial to coordinated pool operation. Denton has dedicated its Spencer Station along with transmission substations to the Pool. Denton, along with the other cities of TMPP, has dedicated the Gibbons Creek unit to the Pool. Section 8 - Pool System Operations Amendment No. 1 to the Power Pool and Interchange Agreement provides that it is the responsibility of each party to plan, finance, install and operate the facilities of its own system. Further, it is the responsibility of the Pool members to jointly plan to install and operate the facilities to meet the requirements of the Pool. If a Pool member does not have the required reserves, no other member of the Pool Is allowed to sell its capacity such that the Pool wi:l not have the required reserves. The Pool member that is defident has the right to purchase supplemental capacity and energy from other Pool members to meet its load plus required reserves, it the Pool is projected not to have the capacity to meet the load and reserve requirement, the Pool member or members which do not have suffident capacity have the responsibility to provide sufficient capacity to meet the Pool requirements. The reserve requirement is 15 percent of the peak demand, or as required by the operating guidelines of the Electric Reliability Council of Texas (ERC07). RMI understands ERCOT is considering increasing the reserve requirement to 20 percent RMI cannot anticipate the ultimate decision which ERCOT, its member utilities, or applicable regulatory bodies may make on this matter. In its Offidal Statement dated May 20, 1993, TMPA used a reserve requirement of 15 percent. RMI proposes to use a reserve requirement of 15 percent for purposes of the Long-Range Power Supply Study. Pool members agree to exchange emergency, economy, maintenance, supplemental, and firm power and energy. Section 14 - Term of Agreement The Power Pool and Interchange Agreement remains in force for an Initial term of ten years and thereafter until terminated upon ten-years' notice. To RMI's knowledge, no party has served notice to terminate its participation in the Pool, 4-6 " C REVIEW OF BOWER L COtiTRAC'S TMPA POWER SUPPLY PLANNING 2 9 /,/O' TMPA has conducted various studies of its future power supply Options. TMPA's current conclusions, as presented in its May 20, 1993 Official Statement for the Series 1943 Refunding Revenue Bonds, are: 1. A second 400-MW solid fuel unit at the Gibbons Creek site ("Gibbons Creek 2") is the best choice to meet base load needs with non-gas fired generation. 2. The appropriate commercial operation date for Gibbons Creek 2 is in the 2001-2004 time frame. I 3. Imtallation of simplelycle combustion turbines or combined-cycle units in increments of 70-200 MW is the best choke to meet load and reserve requirement prior to Gibbons Creek 2. 4. The combined cycle consisting of a combustion turbine, heai recovery boiler and steam carbine will produce short-term power costs that are 2.5% lower than simple cycle combustion turbines. 5. Commitment for Installation of Gibbons Creek 2 and either type of combustion turbines will be required not earlier than 1945 nor later than 1998. For planning purposes, TMPA assumes the installation of a 100-MW combustion turbine in 1994 and again In 2001. TMPA concludes that it Is taking the necessary actions to ensure that the appropriate future generation additions can be made in a timely manner and that suffident fnformation will be available when the rime comes for cities to make their commitments. The term "project" does not include any facility financed with the proceeds of Special Contract Obligations as perndtted under and defined in the bond resolution, which RMI has not reviewed. Based on TMPA's May 20, 1993 Official Statement for Its Series 1993 Refunding Revenue Bonds, RMI proposes to use the rates in Table 4-1 for power and energy purchased by Denton from TMFA. These rates do not include the impact of a second 400 MW solid fuel unit projected for commercial operation in the 2001-2004 time frame. 4-7 REVIEW OF "slit POOL & SALES CoNTRAm TABLE 4-1 PROJECTED TMPA POWER & ENERGY RATES Demand Charge Energy Charge Percent Increase Year (S per kW-month) per MWh) Over Prior Yea? 1993 28.13' 12.41' - 1994 29.07 12.82 3.33 1995 30.08 13.27 3.49 1996 31.67 13.97 5,28 1997 32.32 14.26 2.04 1448 33.34 14.71 3.17 1949 3511 15.52 5.49 2000 3637 16.05 3.42 2101 38.56 17.01 6.01 2002 43.46 17.85 4.92 2003 41.38 18.26 2.29 Current :ate. r From the projected operating results prepared by TMPA. These percentages apply to both the deaund and energy charges TMPA projected demand and energy charges are only available through M. The demand and energy charges after 2003 will be escalated at the anntml rate of 25 percent. Denton has reviewed TMPA's rate structure and methodology. RMi understands TMPA has also reviewed its rate making methodology. Since TMPA is obligated by the Bond Resolution to charge rates sufficient to provide adequate revenues and since a proposed amendment to the Power Sales Contract would fix Denton's obligations to provide for TMPA's fixed costs, the structure of TMPA's rates will not affect Denton's power supply planning for purposes of this study. OFF SYSTEM SALES In order to reduce the average cost of power to the TMPA cities, a program to sell power to other customers on a wholesale and long-term basis was developed. Currently, TMPA has sales contracts with four other cities as follows: 4-8 z x ".rEwatta~ 0~3 crs City Current Demand JIAI 61 Farmersville 5MW lJ Bowie 14MW College Station 100MW B,idgeport 9M W Contract expirations range from December 1995 for College Station to May 2002 (or later based on a rolling 5-year term) for Bridgeport. Additionally, TMPA has provided power and energy to Brazos. Brazos' capacity purchase totalled 133MW in 1992 and is projected to end when it places additional pealing generation into service scheduled for 1996. DENTON PLANT OPERATION UNDER TMPP DISPATCH The five (5) Spencer Steam Units are operated according to the TMPP procedures. Dispatching of TMPP generation is directed through the Brazos Dispatch Center in Waco, Texas. Denton receives an appropriate percent of lignite generation from TMPA for baseload generation less the contractual obligation for off-system sales to Farmersville, Bowie, Bridgeport, and College Station. Gas Units in TMPP are typically dispatched according to daily generation projections and loads based o.Pon incremental cost of generating units available in TMFP. Since Spencer Units 4 and s have lower heat rates than the other Spencer units, Units 4 and 5 provide Denton's primary contribution to TMPP's pool generation as those units are dispatched regulakiy. Operation is primarily cyclic, although Units 4 and 5 operated continuously through most of the Summer of 1993. Spencer Unit 3 is typically dispatched during peak seasons. Spencer Units 1 and 2 operate primarily at Denton's discretion to back up the Spencer 13.2 KV Substailon bus and for TMPP emergencies. Dispatching operations require unit availability within four (4) hours of a call. Unit loading is accomplished through Automatic Generation Control (ACCT for Units 4 and 5. Units 1, 2, and 3 are loaded manually as requested. TMPP accounts monthly for energy allocation and cost accounting through an administered software program called SAVALL SAVALL is operated under basic supposition of split savings between actual dispatched cases versus stand alone cases whereby each utility would be supplying its own generation. Various export and import costs are determined each hour for each TMPP member. Economy Gas and Lignite Pooh are effectively created, containing all economy gas and lignite energy to be sold by members having economy gas or lignite to sell. Members buying economy gas take energy from the Gas and Lignite Pool, and each pays an amount of money into the pool based on its savings. Members selling energy into the Car and Lignite Pools withdraw their export cost plus a share of all additional Pooi payments in proportion to the sum of the member to member savings each selling me nber effectively cre?tes. 4-9 -os,3 SECTION 5 REVIEW OF EXISTING GENERATING FACILITIES Nwon owns and operates three power plants. The Spencer Station is located in Denton and consists of five gas-fired steam units with two diesel units for emergency generation. Denton also has a 2 -.MW hydroelectric unit on Lewisville take and a 1-MW hydroelectric unit on lake Ray Roberts. RMI reviewed the gas-fired steam units at the Spencer Station, but excluded the hydroelectric units since there is no potential for significant changes at either of these facilities which could significantly impact the Long-Range Power Supply Study. RMI reviewed information provided by Denton's staff relating to the Spencer Station RMI also participated in a plant walk-through with D nton's Srtperintend etit of Electric Production on May 10, 1993. The purpose of this w,lk-through was to identify possible enhancements to Increase rapacity or L-nprove efficiency of the plant, to identify changes which may be necessary in the operation or additions of equipment to comply with the Clean Air Act Amendments of 1990, and to develop strategies for the construction of new generating units at the site. This effort was conducted as a part of a power supply planning process, and as such represents a general overview rather than a detailed engineering assessment. Its purpose is to identify alternatives for evaluation during subsequent phases of the Long-Range Power Supply Study. The following sections include a description of existing generating units, a discussion of the potential impacts of the Clean Air Act Amendments of 19%, a description of possible capacity additions at Denton's generating station, and information on natural gas prices and capital cost for generating station improvements. EXISTING GENERATING UNITS Description Denton's five existing generating units range in size from 11.5 MW to 61 MW net generating capacity and range in age from 20 to 38 years, with the larger units being the newer units. Table 1 summarizes key characteristics of each of these units. All turbine generators were supplied by General Electric (GE), and all boilers were supplied by Combustion Engineering, now a subsidiary of Asea Brown Boveri (ABB). RMI engineers walked through the plant with the Superintendent of Electric Production for an overview of the lay-out and appearance of this facility. This section summarizes observations made during the walk- through. 5-1 REVIEW OF EXISTI VC~FI~FR/r~ FACILITIES W, _ TABLE 5.1 SPENCER STATION GENERATING UNIT STATISTICS GENERATING UNIT DESCRIP'T'ION 1 2 3 4 5 Norms! Rating - Gas Fuel (MW) 115 I15 28.0 59.0 11.0 Normal Rating - k2 Oil Fuel (MW) 11.0 11.0 25.0 54.0 -354 Max Turbine Rating (MW) 122 12.7 22.0 61.2 ~ 655 Initial ConunercaI Operation 1955 1955 1960 1966 1973 Age (Years) 38 38 33 27 20 Last Turbine Overhaul lam '91 Nov. '91 Mar.'87 )an '93 Feb. 189 Dorm Steam Flow (1,000.bs/hr) 125 125 280 590 640 Operating Steam Pressure (psig) 675 675 875 1373 1435 Stea_t Temperature (Deg. F) GA &30 900 955 955 Full Load Feel input (MMBtu/hr) 147 152 324 710 686 TURBINVGENFRATOR Steam Pressure(pslg) 600 600 850 1250 1250 Steam Temperature (Deg. F) gu 825 900 950 950 Number of Extractions 4 4 4 4 4 PERFORMANCE TEST DATA Date o' Test 7/18/90 7/27/90 7/25/90 7 OW% 6/27/91 Full Load Net Heat Rate 12,826 13,208 12,465 12,1)29 11,239 (MMBty/kWh) Test Point Net Generation U.(W) 11.917 11.996 26757 59.99 60315 Maximum Net Generation (MW) 12541 11554 27.483 59.99 66.548 5.2 y'3 O r/3 REVIEW OF EXiS ING..~~}}_~_ 4 T C FNERATiNG FAC(LMEs Cenerally, Denton's five existing generating units are In good condition a cc oyrdig to the Superintendent of Electric Production. All turbine generators have been overhauled and inspected within the last five years, and no critical flaws were reported. The boilers for Units 4 and 5 are also reported to be In good condition. Unit 1 and 2 boilers have extensive fireside corrosion, the tubular air heaters are very deteriorated, and superheaters require replacement. It may not be economically practical to renovate the boilers for Units 1 and 2 due to their age and condition. All four cooling towers (a common tower serves units 1 and 2) require repairs to varying degrees. The Unit 1 and 2 cooling tower is deteriorated to such an extorat that Denton should Investigate replacement of the rtntcture above the basin before performing any major repairs to the existing structure. Controls and instrumentation are generally pneumatic-type controls. It will become increasingly difficult to locate repair parts for these systems. Denton's staff currently has to custom fabricate repair parts for the older control equipment. It will be necessary to replace controls and instrumentation with electronic equivalents or a Distributed Control System (DCS) if any of the units are upgraded. Partial asbestos abatement has been performed in this facility. All turbines and extraction piping have been abated as well as some of the high pressure feedwater heaters, power piping and boilers. Additional asbestos abatement will likely be required if modifications are made to the existing units. The balance of plant equipment (structures, pumps, fans, air compressors, piping, etc.) is reported to be generally in good condition and requires only normal preventative and corrective maintenance. The generating station also includes two I MW RID diesel units which are located north of the steam turbine building. These units primaidy provide an emergency beck-up power supply to the nearby water treatment plant and also provide some limited black start capability. They are skid mounted and should be relatively easy to relocate if required to make space for a gas turbine on the north side of the plant. There are three No. 2 oil tanks at the site. Total storage capacity is approximately 3 miWon gallons. This is sufficient to operate at an average generation output of 150 MW for approximately 10 days. This storage ca;acity is reasonable for a back-up fuel and additional storage capacity Is not necessarily required for additional generation. There is an old metal building which was erected as a construction shed when the existing generating units were being bui]i; however, it may have to be removed if expansion occurs on the south side of the plant. It is currently being used as a warehouse for plant use. 5-3 i i t ~S REVIEW OF EXISTINGC~Ff1 ~AT FACILITIES 67 Enhancements to Increase Capacity of Existing Units O RMI contacted CE to determine if there are any modifications which can be made to the existing turbine - generators to Increase their capacity while retaining the basic steam cycle currently in place. While there may be repairs or replacements of particular components to restore the units to orig aal design conditions, CE representatives do not generally consider it practical to make modifications which can result in significant capacity increases. The primary method to increase capacity of the existing units is through repowering by installation of some combination of gas turbines in combination with waste heat recovery boilers to replace the existing boilers. This option is discussed In more detail below. Enhancements to improve Efficiency of Existing Units The thermal efficiency of steam-electric generating units is primarily a function of the operating pressures and temperatures of the boiler and turbine. Higher temperatures and pressures will result In a higher thermal efficiency. While it may be possible to make slight improvements in the effidency of existing generating units, it is not generally practiW to make modifications which will result in major improvements in thermal effkdency. Increases to the operating temperature are limited because the metals used to construct the turbines, piping and boilers were based on the metallurgical technology avallable at the time of conshvction and likely cannot tolerate temperatures significantly higher than the original rated conditions. Operating pressures are limited by the thickness and strength of the metal used to fabricate these same components. There are a variety of operation and maintenance factors which can cause a generating unit's efficiency to deteriorate from design conditions. These include boiler operation, especially excess air, air heater fouling, air and hot gas leakage, feedwater heater and condenser cleanliness and leakage, feedwater level controls, and excessive operation of steam ettemperator, just to mention a few. Some of the methods used by utilities to reduce the impacts of these problems include the following: I. Periodic condenser cleaning 2. Condenser leak detection and repair 3. Minimize excess combustion air 4. Check and adjust rotary air heater seal clearances 5. Calibration of heater drasi controls 6. Installation of heater drain pumps 7. Feedwater heater cleaning 8. Conversion to sliding pressure operation 9. Operator training 10. Control system replacement 11. Restore turbine steam seal clearances 12 Restore cooling towers to maintain lower turbine backpressure 5-4 a REVIEW OF EXISTING W-SA4T ACILIIIES ~f1~-3667 This list represents an overview of operation and maintenance items which can Im t the thermal efficiency of a steam generating unit. Many of these items have been addressed previously by Denton staff; however, some may offer opportunities to improve performance of these generating units. RMI reviewed heat rate test reports previously performed for Denton by others. RMI observed that condenser and air heater performance data for Unit 5 appeared less than optimal. The heat rejection system and air heater/boiler performance should be investigated in more detail to identify possible heat rate and capacity Improvements. • I 55 SECTION 6 CLEAN AIR ACT ASSESSNENT 71 The federal Clearn .fir Act (CAA) Amendments of 1990 have significant impacts on electric utilities across the country. The provisions with the most likely impact on Denton are; ► Title I - Provisions for Attainment and Maintenance of National Ambient Air Quality Standards. ► Title N - Add Deposition Control. ► Title V - Permits. In addition to the above, Denton could be impacted by other provisions of the CAA, including Title III -Hazardous Air Pollutants and Title VII - Enforcement. Future regulatory actions will describe the extent these provisions may impact Denton. This preliminary assessment of CAA impacts on Denton relies on the basic plant configuration and histotical operating information provided by Denton, contacts with the Texas Air Control Board (TACK), and review of United States Environmental Protection Agency (EPA) regulations. This assessment also -considers the existing facility and future resource additions, including re-powering with a combined cycle gas turbine and the installation of a new refuse derived fuel (RDF) unit. CAA Title I -]Provisions for Attainment and Maintenance of National Ambient Air Quality Standards One of the major issues of concern for Denton under the CAA is the potential that more stringent control requirements for nitrogen oxides (NO,) may be imposed by the TACB and/or EPA pursuant to Title 1. Title I required the TACB and EPA to identity geographic areas of Texas that do not meet the National Ambient Air Quality Standards. The pollutant of concern in the Dallas-Fort Worth o7ea is ozone (ozone is a byproduct of chemical reactions involving volatile organic compounds and NO, stimulated by heat and sunlight). The current ozone air quality concentration In the Dallas-Fort Worth area is 0.141 parts per million versus the ozone National Ambient Air Quality Standards of 0.120 parts per million. As a result, the TACB and EPA designated Denton County as a moderate non-attainment area for ozone.' ' Page 56M, federal Register/vol. 56, No. 215/Wedre9day, November 6,1991 designates the Dsltu, For Worth Area (Collin County, Dalian County, Denton County, and Tarrant County) as a+oderate nonattalnment for ozone. 6-1 CLEAN AIR ACT ASSESSMENT ~J i The moderate ozone non-attainment designation for the Dallas-Fort Worth area requires the TACK to revise the air quality State Implementation Plan and include Reasonably Available Control Technology (RACI) for major existing sources located within the four-county area that emit volatile organic compounds and/or NO.. In addition, the non-attainment designation means major new sources and major modifications of existing sources of NO, emissions must meet the strict provisions of the federal New Source Review (NSR) program. The basic NSR requirements include the use of the Lowest Achievable Emission Rate (LAER) and a requirement for emission offsets. Major sources in moderate non-attainment areas are those capable of emissions in excess of 100 tons per year at a 100 percent capacity factor, unless a legally enforceable restriction is applied to the source. Reasonably Available Control Technology (RACT) The EPA, the State and Territorial Air Pollution Program Administrators (STAPPA), and the Association of Local Air Pollution Control Officials (ALAPCOP have all issued guidance documents to assist states In defining NO, RACT. The TACB is proposing NO, RACT for each ozone non-attainment area In Texas In sequence. The first regulations adopted by the TACB were for the Houston area and provide further guidance for what the TACB may do in the Dallas-Fort Worth area. Regulatioro for the Dallas-Fort Worth area are not expected to be proposed until later in 1993. Table 2 identifies the range of NO, emission limits that could be imposed on utility sources In the Dallas-Fort Worth area. While it is not possible to identify the NO, RACT limit for Denton, It is likely that the revised NO, regulations will be no less stringent than the current specifications in TACB Regulation 7. Page 5626, Feikral Regbter/Vot. 57, No. 228/Wednesday, November 2S, 1992, 'Nitrogen Oxides Supplement to the fever it preamble, s STAPPA/AIAPCO "Controlling Emissions of Nitrogen Oxides From Usting Utility Boom Under Title I of the Clean Air Ad: Options and Recommendations', April 27,199L 6-2 J r CLEAfJ~(lRGCT SS -:3FNT TABLE ALTERNATIVE NO,RACI' EMISSION LIMITS Type of EPA STAPPA/A1APCo TACB TACB Utility Unit Cuidellne Recomrundatlon Regulation 7 Regutallon 7 Tangential-}M (Curreno` (Houston-Beaumoaos Steam Boger 0.20 ibs/MMBtu 0120lbs/hIMBtu 025 1bs 0.26 lbs/MMBtu Burning CBS (3"ay average) (1-flour aver /MMBtu (24-hr average) ge) (2-hraversge) and 0.20 N/MMBtu wag-Fired 00-1 avers e) Steam Boiler 0301M/MMBtu 025 (bs/MM Btu OSO ibst 0.26 N/MMBtu B"~'8 Gas 00-day average) (1-hour avers e / AMBtu (2{-hr average) 8) (2-hr average) and 0201M/MMBtu Tangentw.Rred (30-0a aver ) Steam 800or 0.20 IN/MMBtu 020 ibs/MMBtu Equations BwT"g C81/0it (30-day average) (1-hour average) waB-tared Steam Boiler 0.30 IN/MM Btu 0,25 N/MMetu Equations BurningCIS100only(30.dayr,v~ge) p-houraverage) Apphea Ib grea s Ar to boBen kw than 1 t'un IM/hr steam apadty, BoBed exempt. OO,0W ibs/hr with a capacity factor of leas than 30 greater than 600,000 Percent are also r A utili an dtoon to comply with that limits on a system average basis. Units with a total annual t input of less than 2,200,000 MM Btu are exempt, ' Entiu10tta limits . (A(0.26) t B(0.30)1/(A*B) where A . percent heat Inputgas B . percent heat m ut o0 A further rompllcadon r"lates to the possibility that the requiren*nt for NON RACT may be waived by 6pA Iet photochem(cal grid modeling demoltstrates reductions it NO. emissions gill not improv ozone air quality in the DaIl.WFort Worth area, The photochemical ions modeling for this area will not be Completed until November 1"41. Although 1985, 1986, and 1987 average NO, estimated at emiselon rates for the Denton facility can be approximately 1.0 !bs/MMBtu from the TACB emission inventory, recent NO, emission test data are not available for the Denton units As a result, v assessment of the speciAc impacts of NO. RAC[ regulations cannot be performed at this time. To fully evaluate the potential Impact of NO, RACPlimitations, Denton must obtain accurate current NON emission data for each unit and monitor the TACB State Implementation plan development process. 6-3 I s CLEAN AIR ACT ASSESSMENT New Source Review Requirements (NSR) - The basic federal and TACB NSR requirements include the New Source Performance Standards (NSPS), Prevention of Significant Deterioration (PSD), and non-attainment provisions. The applicability of each of these requirements relates to the type of unit, size of the unit, and the potential emissions, An Independent assessment must be made regarding the applicability of the PSD and non-attainment provisions for each contaminant emitted. A proposed resource addition by Denton could be subject to PSD review for one contaminant (e.g., sulfur dioxide (SO2) from off combustion) and subject to the non- attainment provisions for another contaminant (e.g., NO, emissions regardless of the fuel type). The key constraints for siting a resource addition at Denton are the ozone non-attainment provisions for NO.. Because Denton is located in a moderate ozone non-attalnmtot area, the non-attahiment provisions include the use of LAER control technology and emission offsets on a 1.15 to 1.0 basis (Le., NO, emissions from existing sauces trust be reduced by at least 1.15 tons for each ton of NO, emitted from the proposed new facility). The TACB requires each applicant for a new source construction permit to perform a LAER study and submit the results with its application. The LAER study must Identify the most stringent emission limitation regulations and permit restrictions that have been imposed by the TACB and other permit jurisdictions across the country. The TACB has no recent NO. LAER experience. The TACB staff feel It is likely recent permit actions In California and New England will determine the LAER limit for the next application submitted to the TACK. Recent permil actions reported to the EPA BACT/ LAER Information System include NO, limitations of 9 parts per million for combustion turbines and 0.05 Ibs/MMBtu for steam units! NO, offsets will be more difficult to obtain after the NO, RAM' requirements are adopted by the TACB. The emission baseline for offsets is defined by the RACT regulations and the most recent operating hislory. Denton may have some internal offsets available from the reduced utliz aticn or shutdown of its existing boilers. It Is more Wcely, however, that Denton would have to obtain any required NO, offsets from external sources. Establishing offset relationships can be a long lead time item. Denton should initiate efforts to Identify and secure sufficient NO, offsets for any planned resource additions as early as possible. 4 Msmsion with Jim Crocker of the TACO on May 24,194;1. 64 CLEAN Apt_~g ASSMMFNT CAA Title IV -Acid Deposition Control DD Title IV of the CAA establishes a market based systf m of SO, emission allowances in two phases. Phase 1 of the Title IV program affects large SO, emitting facilities beginning in 1995. Phase 11 affects every other existing utility unit (fossil fu(l-tired combustion device) servicing a generator of greater than 25 MW and includes new , wits regardless of size. Denton has no affected units in Phase f. Boiler k4 and Boiler 05 both service generating units with a nameplate capacity of greater than 25 MW and are, therefore, affected units in Phase 11 of the Title IV program. Boilers #1, it2, and M3 each service generators with a nameplate capacity less than 25 MW ar d are exempt from the Title 1V program. In addition, any new unit will be subject to the Title IV requirements. The basic Title IV requirements for Denton Include: > The assignment of a Designated Representative to be responsible for all aspects of Title IV compliance. ► The installation, certification and operation of Continuous Emission Monitoring (CEM) systems for Boiler *4 and Boiler i5 by no later than January 1, 1995. > Submission of a permit application and compliance plan for Boiler N4 and Boiler its by no later than January 1, 1996. ► Operating within the SOr emission allowance management program beginning in 2000. ► Meeting the NO, emission limits imposed by Title IV by no later than January 1, 2000. ► Inchtsion of any new unit in the requirements of the Title IV program. Designated Representative Denton must formally identify its Designated Representative and Alternate Designated Representative before any Title W paperwork is submitted to EPA or the TACB (the first submission for Denton Is likely to be the CEM certification in 1994). The Designated Representative is liable for the content of all Title IV information submissions. This is an important responsibility that should beassigned to a person with authority for the operation and environmental compliance of the generating plant. 6-5 a CLEAN AIR ALT ASSESSM ENT SO, Emission Allowances 67 ` EPA published final Phase 11 SO1 emission allowaiKes (tons per year of SOr emissions) on March 23, 19931 Table 3 summarizes the Phase If allocation to Denton of 42 allowances during the ten-year period 2000 through 2009 and 39 allowances each year beginning in 2010 and thereafter. TABLE 6-2 PHASE II SOa ALLOWANCE ALLOCATION FOR DENTON Allowances for Years Allowances for Years Boller 2000.2009 2010 and Thereafter Mier N4 19 17 Boiler N5 23 22 mwwmwwl~ TOTAL 42 39 Under the Title IV program, annual SO, emissions from Boiler M4 and Boiler M5 must not exceed the total number of emission allowances held during any year. The exclusive use of natural gas In these units ensures that annual SOS emission will be far less than the allowance allocations summarized In Table 11.2. It the combustion of oil in toiler #4 and Boiler #5 increases, the SOr allowance allocation may be a constraint. Denton should prepare a long-range projection of SOi emissions versus available allowances in advance of the January 1, 1996, filing deadline for Phase 11 permit applications and cor.,.pGar.ce plans. The SO2 emission allowances allocated to Denton wCI be placed by EPA in a computerized unit allowance account for both Boiler 04 and Boiler N5. These allowances an be sold, traded, or "banked" for future use. An allowance can be used in the year It is issued or any subsequent year. Denton should develop an overall allowance management plan that considers the available allocation, projected operations of the existing units, and future resource additions. s PaSc 15631, Fedrra! Resdfer/Vol. 58, No. 54/Tuesday, March 23, 1993, 'Acid Rain Allowance Allocations and Reserves'. 6-6 .Gw~'.. CLEAN Atk ACT ASSESSMENT ~_b 7 Continuous Emissions Monitoring (CEM) EPA adopted the final "core" acid rain implementation regulations on January 11, 1993.1 Among nwmerous other items, these regulations specify detailed requirements for CEM system installation, operation, and data reporting. The basic CEM requirements for Phase 11 units include. ► Continuous monitoring of SO,, NO,, opacity, and carbon dioxide (CO2). ► Certification of monitors and continuous operation no later than January 1, 1995. ► Maintenance of data and regular (quarterly) reporting of data to EPA by the Designated Representative beginning in 1995. The EPA regulations provide for an alternate fuel quality procedure in lieu of CEM for SOr for gas-fired and oil-fired units. Utilities must obtain approval from the EPA for the use of the alternate procedure. If Dentor wishes to pursue this option, it should submit the request to EPA to obtain approval before proceeding with the SOr monitoring option. The EPA regulations exempt gas-fired units from the opacity monitoring requirement. Oil- fired units are not exempt, however. If Denton can commit to 100 percent use of natural gas in Boiler W and Boiler t15, it will qualify for this exemption. The EPA regulations provide the opportunity for utilities to declare a unit to be 100 percent gas-Ared and subsequently convert to dual fuel firing. The Title IV regulations requt.-e utilities to Wtall an opacity trtonitor(ng system by December 31 of the calendar year following the change in fuel mix Permit Application and Compliance Plan Title IV requires that Phase Il permit applications and compliance plans be submitted by January 1, 1996. These applications must be submitted by Denton to either the TACB or the EPA (the TACO will be the permitting authority provided It submits a qualifying program to EPA). The Phase 11 compliance plan and permit application are certifications that Denton will operate in conformance with all of the applicable Title W requirements. The Designated Representa H ve must sign the certification that accompanies these documents 1 Page 3M,Fe&WRg4ter/Vol.$8,No.6/Monday, January 11, 1993. "AcidRain Pro"m: Cenral Permits, Allowance System, Contirrsous Emissions Monitoring, Excess Emissions, And Administrative Appeals". 6-7 A &4 . Cr A55[SSMEAIT New Units Any new fossil fuel-fred unit constructed by Denton will be included in Phase 11 of the Title IV program. The requirements for new units are comparable to those applicable to existing units with one Important exception. The provisions of Title IV do not provide the owners/operators of new units with an S02 allowance allocation. If Denton installs new resources, it must operate within the allowance allocation provided for Boiler k4 and Boiler N5 or obtain additional allowances through one of the available market mechanisms. Thif could include bidding in EPA's annual allowance auction, purchase from a private market, or negotiations directly with another utility. Title V - Permits Title V of the CAA establishes a requirement that each state develop an acceptable operating permit program for certain categories of sources. Utility boilers will be included in this program. The TACB has the responsibility for developing the Title V permit program in Texas. The operating permit program developed by the TACO must: > Demonstrate adequate state legal authority and funding for the air pollution control agency. ► Require permits for all major sources and all Title N affected units. ► Include a standard permit format that includes emission itmits, monitoring requirements, and reporting requirements. + Be implemented in accordance with the following schedule. • November 15, 1943 - Deadline for the TACO to submit its Title V permit progrurn to EPA. • November 15, 1994 - Deadline for EPA to approve/disapprove the TACO plan. • November 15, 1993 - Deadline for existing sources to submit the initial Title V permit applications. • November 15, 1997 - Deadline for issuing initial Title V permits (1/3 of the permits must be issued in each year 1445. 1997). The TACO proposed Title V implementation regulations in May 1493. Hearings were scheduled for June, and the TACO expects final Tide V implementation regulations will be adopted in August 1943. The Title V program adopted by the TACO will require facilities 6-8 c CLEAN AI ACT ASSESSMENT that have Title IV affected units to submit a peftnit itp'I'llmtt slxrtronths of the effective date of the new regulations' ' 4 - The TACK has recently adopted new fee regulations for air permit applications as part of the overall Title V plografm The fee regulations establish emission fees of $5 per ton for 1993, $25 per ton far 1994, and $26 per ton for 1995.' The new Title V permit program will impact Denton in several other ways. New permit applications must be submitted by the Designated Representative in the format specified by the TACB. The Title V permit will contain specific performance requirements. Other CAA Issues The scope of this work effort does not accommodate a comprehensive review of the possible Impact of each aspect of the CAA on the Denton utility facilities. The provisions of Title 1, Title IV, and Title V summarized In this repo.' are the major impacts identified. Two additional CAA issues with the potential pact Denton are Title 111 • Hazardous Air Pollutants provisions and the special re -,,;ent for the EPA ttladopt revised NSPS for municipal solid waste combustion sources. Hazardous Air Pollutants Title III regulates emissions of 189 Wed hazardous air pollutants (HAPs). A facility wM be impacted by the regulations adopted by EPA if it emits in excess of 10 tons per year of any one of the 189 HAN or emits more than 2S tons per year of any combination of HAN. The regulations adopted by EPA will require sources of HAPs to reduce emissions by 90 percent through the application of Maximum Achievable Control Technology (MACT). Utility units that are impacted by Title IV (for Denton this includes Boller 04 and Boiler 05) are spectAcally exempted from these requirements. Utility units that are not affected by Title IV (for Denton this includes Boller 01, Boller 02, and Boiler 03) can be impacted by the new HAN regulations. In addition, non•boder sources (e.g., chemical storage tanks) can be Included In the HAN adopted by EPA. EPA is required to adopt the HAN regulations In groups during the remainder of the decade. Denton should continue to monitor this process and be prepared to respond to any regulations that Impact its operations. r Discussion wish sissy Boyle of the TACB on May 25, 1943. 6-9 t v t i 1 CLEAN AIR ACT ASSESSMENT Municipal Solid Waste Combustion The 1990 CAA Amendments instructed EPA to propose revised NSPS ford sues 7 of municipal solid waste combustors. The Amendments exclude incinerators with 30 percent or less of the weight of the input fuel feed stream being comprised of municipal solid waste. A draft of the new EPA regulations was released to the Office of Budget and Management last fall. The proposal has been delayed to allow the new administration time for review and revision. It Is expected that the proposed regulations will be published later this year, The proposal will likely set maximum emission rates for particulates, SOr, NO„ hydrogen chloride (HCq, organics (dioxins and furans), and heavy metals (cadmium, lead, and mercury). Once adopted, the new NSP3 will be a ceiling on emissions from new municipal solid waste combustors. The NSPS are just one regulatory requirement, however. The Title I requirements for NO, In ozone non-attainment areas, PSD, and other NSR requirements are also applicab?e to any new municipal solid waste fuel combustion unit. These requirements can be more stringent than the NSPS and should be thoroughly evaluated by Denl,)n before proceeding with any resource addition that integrates a waste-to-energy alternative. Although unrelated to the CAA, residual ash management U another important environmental regulatory consideration that should Impact a decision to proceed with municipal solid waste combustion. The impact is confused by the uncertain legal status of residual ash under the definition of hazardous waste. The EPA issued a guideline memorandum In the fall of 1992 stating its position that residual ash from municipal solid waste combustion qualifies for the household waste exemption In the definition of hazardous waste. EPA's guideline would allow the residual ash to be disposed in a conventional municipal solid waste landfill regardless of its characteristics. Conflicting decisions by various Courts of Appeals have resulted in this question being raised, to the United States Supreme Court It is possible the final resolution of this question will subject residual ash to hazardous waste characterization testing with the management (disposal) of each waste stream determined by the characteristics it exhibits. Denton should consider this uncertainty as it refines its consideration of a waste-to-energy facility, In addition to the technical requirements, siting municipal waste combustors requires a major public relations effort. The general public concern for waste management practices is amplified with incinerator projects. An effective public education and Solid Waste ,md Power, May-June 199, "Welting for the Other Shoe to Drop: New Air Quality Rules for WTE". 6.10 CLFAN AIR ACT ASSE.CSMENT Public involvement combustion program is essential to the siting of an facility, any municipal waste - SUMMARY 0 The CAA impacts Denton's existing facilities in several significant wail d ition, the CAA requirements create important constraints that must be addressed to obtain a to construct any resource addition This assessment includes numerous pproval regarding p ossible impacts based on the info e conclusions anticipates Denton can (and will) continue operating itsxstiinggeneaetinwithi RMI environmental regulations. For purposes of the Long-Range Power Supply 8 thin ap applicable assume additional -a fired in an environmentally-a generating WAS can be sited in or around the City Of Denton cceptable manner, To facilitate Denton's environmental compliance, RMI recommends the following actions. Monitor the development of the ozone State Implementation Plan for the Dallas. Fort Worth area and influence the development of the NO, RACT regulations required by Title I. Develop a short list of alternative resource additions and Identify the applicable CAA requirements for each alternative. Assign a Designated Representative and Alternate Designated Representative with responsibility for all CAA fWngs. Obtain an exemption from the Title IV SOr CEM requirement Develop a long-range SOr allowance management plan that considers future resource additions and develop the permit appUcaHon and compliance plan required by Title IV, Monitor the development of the TACO Fermit system and take steps to prepare for the submission of the new Title V permit application. Monitor future regulatory and court decisions related to municipal solid waste combustion and identify changes that impact Denton's considerations. 6-11 CLEAN AIR ACT ASSESSMENT 0 COST ESTIMATES TO COMPLY WITH CAA Continuous Emissions Monitors Denton must install continuous emissions monitors (CEM's) on existing generating Units 4 and 5 by January 1, 1995, to comply with Title IV of the Clean Air Act Amendments of 1 M. Detailed requirements for the CEM's are specified in Title 40, Part 75 of the Code of Federal Regulations. RMI understands that Dento+i is working with the other members of the Texas Municipal Power Pool concerning CEM's. Thus, RMI will consider the cost of CEM's as a "sunk" cost, and it will not be Included in the Long-Range Power Supply Study. 1`10, Reduction Techniques The type of technology which will be required by the TACB for ozone non-attainment areas is uncertain. Generally, the LAER for gas turbines has recently been in the 9. 15 parts per million range for NO,; however, rates as low as 3 parts per million have been under consideration in New York. If the TACB establishes such a low NO, emissions rate for the Dallas-Ft. Worth ozone non-attainment area, a comb6-ation of dry low NO, burners and selective catalytic reduction may be required for any new source in Denton. The following discussion summarizes the technologies available for NO, control. Steam or Water Injection Injection of steam or water lnto the prhnary combustion zone can be used to reduce NO, formation by reducing the peak flame temperature. This method has become common practice for gas turbines. It offers the additional advantage of increasing power output of the gas turbines; however, oily slight Impurities in the water quality can result in damage to gas turbine blades. Generally, water injection is used for simple cycle gas turbines where a source of high quality steam is not available wlklle steam injection is typically used for combined cycle applications, A large demineralized water system is required In either case because the water is not recovered from the exhaust gas. These methods are not typically utilized with steam units. The cost estimates presented in this report for simple and combined cycle gas turbines Include an allowance for steam or water Injection to control NO, emissions. If the TACB requires additional NO, reduction because of the non-attainment zone which Denton is located In, low-NO, burners or selective catalytic reduction may be required. 6.12 CLEAN AIR ACT ASSESSMENT Dry Low-NO, Burners Gas turbine manufacturers have recently been developing drylow.NO?e loos burners For gas turbines which can reduce NO, emissions to the range of 10 - 25 parts per million. The technology is targeted to be available for commercial operation in 1995 by some manufacturers, but it is evolving and will not have been tested with extensive field operation. While details of the burner configuration vary between manufacturers, all involve a staged combustion to reduce the rate of burning and, therefore, the peak flame temperature. For gas turbines, it is effective only on gaseous fuels. if oil is used as a primary or back-up fuel, steam or water injection will still be required. This technology, possibly in combination with selective catalytic reduction (described below) maybe considered to be LAER technology by environmental regulators. Dry low-NO, burners may increase the cost of a gas turbine by $1 - $2 million. The cost estimates presented in this report for simple and combined cycle gas turbines do not include an allowance for dry low-NO, burners. Selective Catalytic Reduction Selective catalytic and non-catalytic reduction are methods used to reduce NO, emissions of combustion turbines and steam units by injection of ammonia in the hot gases a! some point beyond the combustion zone. A catalyst such as oxides of vanadium, titanium, or aluminum are used in areas where combustion gas temperatures are less than 1,600 degrees Fahrenheit. Selective Catalytic Reduction systems cost $80 - $100 per kW of installed capacity for gas turbines. Significant additional operation and maintenance cost are incuaed, including the supply of ammonia. Existing Steam Units - Spencer Units 4 and 5 There are two possible improvements which may be required for Units 4 and 5. The most effective method for these units is to replace the existing burners with dry low- NO, burners available from several manufacturers. Installation of dry low-NO, burners is expected !o cost approximately $50,000.70,000 per burner or $300,000• 420,000 per boiler (6 burners each). This includes an allowance for modifications of the windbox to accommAate the longer burners, but it does not include replacement or upgrade to the burner management system or boiler control system. If the burner management systems and/or boiler control systems are becoming unreliable or replacement parts can no longer be purchased, it would be desirable to replace these systems with modern systems bdsed on microprocessor distributed control systems available from a variety of manufacturers. 6-13 s CLEAN AIR ACT ASSESSMENT Additional NO, reductions may be achieved by modifying the furnace walls and combustion air system to provide for overtire air lnjection. These modifications require cutting out and replacing waters-tall tube sections and replacement of much of the combustion air ducts. Asbestos abatement of the boiler in the affected areas will also be required if not previously performed. The configuration of these two units is such that overtire air is not expected to be very effective and is, therefore, not likely to be considered an appropriate technology. frl4 t SECTION 7 FUTURE CAPACITY ADDITIONS The Long-Range Power Supply Study will evaluate economically various capacity additions to serve Denton's growing loads. One alternative will be continued purchases from TMPA of all Denton's power and energy requirements abovo Its presently-available generation. Other alternatives will involve the addition of new capacity. This section provides information which RMI proposes to use in its economic analyses of Denton's future power supply. A consideration in this planning process Is the remaining operational life of Denton's generating units. For purposes of the Long-Range Power Supply Study, RMI proposes to assume a generating unit is no longer available to supply Denton's load after 45 years of operation. SIMPLE CYCLE COMBUSTION TURBINE Combustion turbine generators (or gas turbines) were first used by the electric utility industry in the 1960s for use during a few peak load hours each year and as emergency back-up of other generating units when they experienced mechanical breakdowns. They were generally characterized by low capital cost, tepid construction, lower efficiency, high maintenance costs, and ability to be started up and placed on-Ilne rapidly. They are capable of burning natural gas and light oil only. During the 1980s, combustion turbine technology Improved to such an extent that they are now taking a major role in generating unit additions worldwide. The most notable changes are significant improvements in availability, fuel efficiency, and megawatt output. Simple cycle combustion turbines with generating capacity in excess of 200 MW are currently available from leading manufacturers of industrial turbines. Simple cycle fuel efficiencies as low as 8,600 Btu's per kilowatt-hour (Btu/kWh), or 40 percent efficient, are reported for some of the combustion turbines based on aircraft derived engines. This heat rate, or fuel efficiency, is significantly better that Denton's steam units which have full load heat rates ranging from 11,200 Btu/kWh to 13,200 Btu/kWh (30.5 percent - 25.9 percent efficient, respectively). Gas turbines can be located in a very small area, typically less than one half acre, and can be purchased and installed in less than two years after permitting has been completed. Since Denton's generating station is located in close proximity to residential areas, noise reduction packaging or enclosure in a building need to be considered. There are a large variety of gas turbines available for consideration. Generally, the larger units have a lower Installed cost per megawatt of capacity; so, it is desirable to avoid the smaller units for electric utility application. Denton's system load and existing generation 7.1 4 i F , FIffURE CAPA rTD~NS limit the upper reasonable size for consideration. RMI will focus on units ranging from 20 MW to 50 MW for the purpose of this study. Table 7.1 lists selected manufacturers models which are available in this size range. This list is not exhaustive, but it is intended to be representative of generally available equipment. TABLE 7-1 SELECTED GAS TURBINE-GENERATOR STATISTICS MANUFACTURER AND CAPACITY HEAT RATE EST>h1ATED COST' MODEL (A ■ Aircraft, I ■ Industrial) (Megawatts) r (Btu/kWh)' DOLLARS S&W mommoomm~ ASEA BROWN 80VERI (ABB) GT 35 (1) 16.9 11,829 11,600,000 686 GT 10B (I) 24.6 11A53 14,806,000 602 CT 8 (1) 482 11,974 22,S PW 487 manonommo~ Move GENERAL ELECTRIC PG5371PA M 263 13,293 12, W)M 471 PG6541B (1) 38.2 12,062 16, WXO 440 LM2500PE (A) (Stewart & 22.8 10,277 14, MAW 614 Stevenson) LM6000PA (A) 41.0 9,479 18,900AM 461 ROLLS ROYCE R5211 (A) 27.3 10,562 16,500,000 664 SOLAR T114000 MARS (1) 10.0 IIAM 7,700,000 770 UNITED TECHNOLOGIES 25.4 9,923 14,900A00 587 FT-8 (A) WESTINGHOUSE W231812 48.0 11,752 20,500,000 427 (I) + tso lud"s r 59 deg. F. air temperature at in level; Decreases vdth higher amblent air tenpaahvea and altitude, t Hat rates expressed N higher heaeng value (MM: JVV heal rates should be decreased appro+dmateiy 9.1 .Jo convert b higher hating value fret tale. a Estimated Installed Cnst.1992116 exduding Mandng costs. 7.2 f 61MBS CAP ADDRIONS '0 66 Gas turbines require a significantly higher natural gas supply pressure than is curt ly available at Denton's generating station. The existing gas supply contract provides for a minimum pressure of 75 pounds per square inch (psi). The actual gas supply pressure typically runs between 150 - 200 psi. Industrial gas turbines typically require supply pressures of 300 . 350 psi and aircraft derivative gas turbines require supply pressures in excess of 600 psi. The higher pressure requirements can be met by either installing natural gas compressors or by requesting the gas supply company to provide gas at a higher pressure. Installation of natural gas compressors is undesirable because they are expensive, consume a significant amount of electrical energy, and area high maintenance component. Section 8 of this report describes alternatives for upgrading the natural gas supply pressure to the generating station. REPOWERING OF EXISTING UNITS Repowering steam units can be accomplished by addition of a gas turbine generator and a waste heat recovery system in a combined cycle configuration to perform one of the following functions: ► Replace existing boiler and provide full 'steam requirements for the steam turbine C'Heat Recovery" method); ► Maintain existing boiler and replace one or more stages of feedwater heating with the gas turbine waste heat recovery system C'Feedwater Heating" method); or, ► Maintain existing boiler and supply heated exhaust gas from the gas turbine as combustion air for the boiler Miler Windbox" method). The Heat Recovery method Is most frequently selected for repowering of existing generating units. It results in the largest increase in capacity and improvement in fuel efficiency of any of the three options listed. Table 7.2e summarizes typical effects on capacity and heat rate for each of the listed repowering options: e "Eco wmk Stratelks for Rrpowering Steam Power Plants" by David 4 Chase, John lV Kovacik and Harry C, ."doll - Power-C n92 Conference Papers. 7.3 a b P 1 F1Jit!_ S~ CAFAC71DD11;ONS TABLE 7.2 IMPACT ON GENERATING UNIT PERFORMANCE BY REPOWERING OPTION 040%5% FBoUer kWindbbox For Denton's Urdu I and 2, the Heat Recovery option is likely the only economically feasible option because the existing boilers have deteriorated to such an extent that extensive repair would be necessary. These boilers are approximately 40 years old. Even if repairs are made, it is possible that a subsequent failure could render the boiler useless, and the investment in boiler rclxir and repowering would be lost. Therefore, the Feedwater Heating or boiler Windbox methods are not considered in this study. The Heat Recovery option for Unit 3 will require installation of a 50-MW gas turbine and, for Units 4 and 5, approximately 120 MW of gas turbine each. Since 120 MW significantly exceeds Denton's potential requtrementi for additional generating capacity, repowering Units 4 & 5 using a new gas turbine and heat recovery boiler is not considered in this study. RlN' requested GE, the manufacturer of Denton's existing turbine generators, to perform an assessment of options to repower Units 1, 2, or 3 using the Heat Recovery alternative. GE was given the objective to maximize efficiency improvements with only secondary emphasis placed on increasing generation capacity. They specifically evaluated repowering using the LM2500 and LM6000 aircraft derivative gas turbine generators only since these units have the highest effidenctes. GE evaluated 21 possible reconfigurations of the steam cycles of the existing units and identified the Collowing alternatives as the preferred combinations studied. With the exception of the last alternative, all of the alternatives tabulated in Table 7-3 are based on modifying the existing steam cycles by abandoning the existing feedwater heaters and repladr..; them with a low pressure section in the waste heat recovery boilers. Also shown as the third option on Table 7.3 Is a repowering configuration using, three IOMW Solar MARS gas turbines. This .onfiguration is being offered through a joint venture of Solar and Black & Veatch. These two companies have reconfigured the M APS package 74 L t FCriUREC P C _ ITIONS specifically for combined cycle operation In an effort to offer a competitive alternative 1 the G.E. aero-derlvative turbines. Black & Veatch performed an analysts of this option and provided the cost estimate. It should be noted that, generally speaking, aeroderivative gas turbines such as the LM-2500 and LM-600 are more efficient than their industrial counterpart including the Solar Mars unit, however, aeroderivative gas turbines have higher maintenance costs. All of the listed options include the cost of demineralization and natural gas compressors, however, Selective Catalytic R-:duction (SCR) is not included. SCRs may be required to achieve lower nitrogen oxide emLsslons due to the non-attainment status of Denton. TABLE 7-3 DENTON GENERATING UNITS 1, 2 AND 3 REPOWERING OPTIONS Flor Get Pull Load Combined Net MW Fatiarted incremental Turbine Heat Rabe Cycle MW Incrust Crol 6/kw Btu/kWh HHV (t14blion) I-LM6000 8,143 503 393 25.4 646 - 1-LM2500 8,462 294 176 17.7 1,006 I or 2 3-MARS 9,066 413 29S 29.0 1A33 3 1-LM6000 8,095 50.6 246 25.4 676 3 2-LM6000 8,145 100.6 _ 144 50.4 4,972 3 1-LM)'00 8,487 29.6 3,6 17.9 IA47 3 2-LM2500 8,387 598 338 35.4 833 3 3-LM2500 8,411 895 63S 52.9 773 3 4-LM2500 815% 1167 90.7 70.1 983 It should be noted that repowering existing steam units under some of the configurations listed above result in steam turbine output significantly less than t,laxirnum capacity. In these cases, additional capacity may be achieved by installing a larger waste heat recovery boiler with natural gas dud burners for supplemental firing. Operation in a supplemental firing mode will increase the average heat rate for the unit. As can be seen from the analysis, there are a large number of alternative repowering configurations available to Denton. The above analysis Is intended to be representative of the range of options available. Different ges turbine manufacturers may offer equipment 7-5 L 5 F rrME CAYACrr"r-O1' ONS with a better match to the capacity of Denton's existing steam units. Repowering using Industrial gas turbines will be less costly on a dollars/kW basis, but such repowering may have higher overall heat rates. RMl has not attempted to assess all possible repowering options available to Denton for this study. If the results of the study Indicate that one or more of the above listed altemati- ~s are economically beneficial to Denton, Denton should further investigate specific alternative manufacturers and equipment selections to improve the overall economics. An estimate of the remaining useful life of the existing steam turbines should also be developed to ensure the alternative is not exposed to significa,it economic risk due to failure of the steam turbine. NEW COMBINED CYCLE Denton could elect to install a completely new combined cycle unit rather than repowering an existing steam unit. The advantages of this approach include improved longevity of steam cycle components and improved performance by better matching the steam cycle to the gas turbine cn tput. The primary disadvantages are signif cot Increases in capital cost and space requirements. New combined cycle units can be constructed In 18-24 months at a cost of $600-800/kW of capacity, depending on a number of factors such as unit size and environmental controls which are required. Full load heat rates range from 7,500 - 8,M (HHV) Btu/kWh for new combined cycle units. WASTE TO ENERGY Denton conducted a comprehensive review of options to dispose of municipal solid waste (MSW) In 1988. A report titled "Solid Waste Alternatives for the City of Denton, Texas" dated February 1988 was prepared for the Department of Community Services, Solid Waste Division. The report includes a report prepared by Black & Veatch titled "Solid Waste Incineration and Steam Generation Facility Feasibility Study." The report indicated that the Edwards Lane Sanitary Landfill was expected to run out of capacity by January 1994. The study reviewed a variety of options for addressing the community's solid waste disposal needs including development of a Waste to Energy (WTE) resource recovery facility. In 1993, Denton retained HOR to review Its waste management program. The 1968 report Indicated that a mass bum WTE facility appeared to be financially feasiKe in combination with expansion of the Edwards Lane Landfill and observed that there may be significant capital cost savings by retrofitting existing equipment at the Denton 7.6 h t ',.,;a _ q3 "ate 6AIRE CAPACitY.ADpI1TONS 67 generating station. The report also noted that the outcome of air quality standards being proposed at that time for Denton County may affect all resource recovery options. The report indicates the amount of solid waste being disposed of Is approximately 3,600 tons per month at an average density of 1,000 pounds per cubic yard. The WTE size estimate was based on processing 104,500 tons per year, 80 percent availability, and 75 percent of commercial waste being processed. This resulted in a WTE facility capacity of 324 tons/day, with an upper size range of 400 tons/day. Capital cost for a mass burn facility was estimated at $40 million ($100,000 per ton) and annual operations and maintenance costs of $9W,000 per year. The cost of operation was offset by the value of electricity, priced at $%/MWh, and 67,786 MWh/year (7.7 MW average). The size of the turbine generator was specified as 12.5 MW, and the boiler was rated at 145,000 lbs/hour. Table 7.4 summarizes the economic analysis presented in the report: TABLE 7.4 DENTON WTE PLANT ECONOMIC ANALYSIS FROM 1988 DENTON FEASIBILITY STUDY ANNUAL VALUE DESCRIPTION (1988$18), ASSUMPTIONS Debt Service $3,588,427 $40 Million Investment, 75% ~ interest, 25 year flnandn Operating E nse 700,000 Maintenance Expense 200 0W CROSS ANNUAL COST $4,4,^9,447 I Revenues from Electric Sales (3,728,214) S5//MWh, 68 Million k Revenues from Tipping Pees (940,500) $9/Ton, 286 Tons/Day NET BENEFIT (COST) S 180,284 Black & Veatch Report The 1988 report included a study performed by Black & Veatch which evaluated WTE options Including repoweiing generating units at Denton's existing generating station Black & Veatch compared the economics of construction of a new landfill with the following repowering options: Mass burn, repower Unit 5 using bypass feedwater heaters 7.7 I r PLrrURE CAPACt1Y ADDMONS ► Mass burn with new steam turbine generator ► Mass bum repowering units 1 or 2 ► RDF repowering of Units 1 or 2 Black & Veatch discounted the feasibility of RDF when compared with mass burn options because RDF was generally considered an economically viable option only for facilities processing around 1,500 tons/day or more, significantly in excess of the 350.450 tons per day expected from Denton's solid waste stream. Black & Veatch focused on repowering Unit 5 with bypass feedwater heaters as bein the most economically feasible option. Thi g s option will require remain in operation with natural as firing. the existing Unit 5 boiler to Key assumptions were that the value of electricity produced would be $45/MWh (1991 $'s), and the unit would operate at a 75 percent annual capacity factor. The assumed value of electricity is critical to the economics of this alternative. The electric energy would have to be used virtually all hours of the year to achieve the 75 percent capacity factor. To the extent that the price of the electricity produced by tht RDF facility (whether or not based on cost) is more than the cost of alterrate energy sources, the unit may not be dispatched, thus decreasing the revenues from sale of electricity and increasing flow to the landfill. Solid Waste Technical Committee Subsequent to the publication of the report, Denton established a Solid Waste Technical Committee to examine solid waste issues further and assist in developing a plan for action. This committee produced a report titled "Assessment of Solid Waste Management Alternatives for the Denton Area" dated July 1992. The Committee focused on an option incorporating expansion of the existing landfill with a materials recovery fadllty and production of refuse derived fuel. This option compared favorably with the new landfill option in the analysis. Mass bum type WTE facilities were discounted as being difficult to acquire environmental permits primarily due to the heavy metal contents of the air emissions and ash. A key a.".sumption used in the analysis was that the recovered materials be sold at $25/ton. 't'hese materials were estimated to be approximately 60 percent of the incoming waste stream of 240 tons/day In 2005. A portion of this stream was to be "pelletized" and sold as a densifted Refuse Derived Fuel (dRDF) in a Waste to Energy application. This fuel report estimated the 7,500. 8,000 Btu's per pound (similar to lignite). This would translate to approximately $1.66/MMBtu which is competitive with other sources of solid fuels. 7-8 FUTURE CAPACITY AMMONS The Committee recommended that Denton proceed with expansion of its current landfill, establish a composting facility, and develop a materials recovery facility at the landfill. The City has initiated a process to purchase 150 acres of land adjacent to the Edwards Landfill for expansion. 9.q re-312 Refuse Derived Fuel a tl... Lll_-_._._3_ if a ME facility Is constructed, most of the solid waste stream would b;$iverted to this facility and would, therefore, significantly reduce revenues received by the landfill for disposal of solid waste. Since a significant portion of these revenues ara used to pay for debt service on bonds used to construct the facility, the landfill disposal fee in dollars per ton may have to be increased significantly or other sources of revenue established. If the community implements a recycling program, the character and volume of the solid waste available for P.DF will change. A large fraction of the energy producing potential comes from paper products and plastics. If an investment is made in a generating facility to utilize RDF, the character and quantity of the combustible waste stream must be determined. Combustion of any type of solid fuel (e.g., coal or RDF) will result In significant complications and additional costs for fuel handling, environmental controls and ash disposal. Typically, solid fuel facilities being constructed today are significantly larger than Denton's existing generating units to achieve economies of scale. Densified RDF is normally considered when an existing stoker type boiler can be retrofitted to accommodate this fuel. One of the primary advantages of dRDF over conventional RDF is that It can be transported and stored more easily. Storage requires some degree of protection from precipitation; however, the fuel can otherwise be handled similar to coal. Transportation cost may limit the economic value of the dRDF when compared with the alternative solid fuel being used in the facility. Combustion of cIRDF may result In higher flyash loadings on the existing precipitators or baghouses. High alkali dRDF material may result in plugging of the stokers with a glasslike coating, constraining air flow. These and a variety of other technical and economic issues must be considered for dRDF cofiring. Construction of a new stoker boiler specifically for burning of dRDF may not be as cost effective as construction of a conventional RDF boiler becau.ge additional capital and operating cost will be incurred In the densification equipment. Densification is generally economical only when there is significant distance between the separation equipment and the fuel combustion equipment or the dRDF is to be used In an existing stoker type boiler. An additional alternative firing for the RDF could involve a fluidized bed boiler. An entirely new RDF facility b estimated to cost approximately $5,000.55,500/kW of generating capacity, or $60 - $66 million for a 12 MW facility. Developing an RDF project 7.9 Y AgendaNo _--2~- Agendaltem ~3 n f PRE CAPACITY ADDITIONS 11 lG -9~ e'4 in conjunction with reFowering of Unit 1 or 2 may reduce this cost by about MAW, to a cost of around $56 million. Operating and maintenance expenses are estimated at $250- 300/kW-year fixed and SM/MWh variable. These costs will be offset by any tipping fees received from refuse disposal. An alternative use of the proposed RDF is to supplement the fuel supply for the Gibbons Creek plant. If the RDF is densified and can cost-effectively be transported to this facility, capital cost to modify the existing solid fuel furnace may be small when compared with the cost of developing a new, small solid fuel facility. The delivered cost of the RDF in S/MMBtu would have to be no more than the delivered cost of lignite to this facility if this option is to be economically feasible. In reviewing the cost of lignite, its fixed component may be reduced as the lignite mine adjusts to lower level of output. Evaluation of this option was beyond the scope of this assignment. 7.10 SECTION 8 NATURAL GAS SUPPLY This section present Information about Denton's natural gas supply and prices for future use by Denton. NATURAL GAS SUPPLY Denton currently has an Intrastate gas sale contract and gas transportation agreement with Lone Star Gas Company (Lone Star). Additionally, Denton has a gas sales contract for delivery to the pipeline and the Spencer plant with Enserch Corporation (Enserch), Lone Star's parent company. The initial term of all three agreements expire on December 31, 1993, and each has a provision for contract extensions. Since these are Intrastate contracts, RMl does not expect that they will be directly affected by the Federal Energy Regulatory Commission's Order 636. There is also a related transfer of gas agreement to allow gas supplies to be rerouted to other TMPP plants. The Lone Star gas sale contract establishes maximum permissible hourly quantity of 1,500/MMBtu, a dally maximum of 30,000/MMBtu, and an annual maximum of 1,250,000/MMBtu. The contract is interruptible, allowing Lone Star to curtail deliveries to the power plant If pipeline conditions are such that gas supplies to bone Star's other customers are jeopardized. It includes provisions for purchasing supplemental supplies from others and an allowance for increasing annual volume limitations by up to 50 percent. RMI contacted Lone Star to discuss options available to increase the supply quantities and pressures to Denton. Lone Star representatives indicated that the contract hourly, daily, and annual maximums can be Increased by 15.20 percent without any modifications to existing gas supply fadlities. The minimum gas supply pressure required by the existing contract Is 75 prig; however, actual supply pressure typically ranges from 125-175 pstg. They also indicated that there are various options available to Increase gas supply pressure to the power plant as described belt w: OPTION 1. Relocate Lone Star's pressure regulating station to be downstream from Denton's Spencer plant. The Spencer plant is the first customer served off the line, and all downstream customers require lower pressures. The maximum design pressure of the line Is 200 psi. This is estimated to cost s12sooo. i OPTION 2: Construct a new parallel 3,000 foot long tine from upstream of the exisfng pressure regulation station to the Spencer plant. This would result In a minimum pressure of 240 psi and cost approximately $170,000. 8.1 M a a I NATURAL GAS SUPPLY Gz-~ OPTION 3: Lone Stars main natural gas transmission line is local /pp n-&ately 2.6 miles from the generating station. Construction of a new high pressure gas tine from this location to the Denton generating station is estimated to cost $700,000 - $800,000. Higher pressures are not available from Lone Star in the Denton area. Even Option 3 would not likely provide sufficient pressure for a new Industrial type turbine-generator such as a GE Frame 5 or a Westinghouse W251. It is likely that unless other higher pressure suppliers are identified, Denton will be required to install natural gas compressors for any gas turbine installation. The cost and performance of extending Lone Stara transmission line should be carefully compared with the incremental life cycle cost of a natural gas compressor If an Industrial gas turbine is selected. NATURAL GAS PRICE FORECASTS Near-Term Since January, 1990, the City has purchased gas supplies and transportation services from Lone Star under two separate contracts. The gas supply contract calls for deliveries at the Spencer Plant under a best efforts delivery basis. Price is tied to a base price with an annual escalator, In addition, there is a monthly adjustment factor tied to Lone Stays weighted average cost of gas (WACOG). The transportation arrangement Is on an interruptible basis tied to a base transportation rate which escalates annually by one cent and also fluctuates based on the volume transported. Both contracts have "evergreen" clauses that become effective on the expiration date of December 31, 1993. The City has entered into two other gas supply contracts with Enserch. Both contracts have a three year term expiring December 31, 1993 and also have an "evergreen" clause which allows a month to month continuation. One of these contracts allows gas deliveries at various receipt points along the Lone Star system and the other requires deliveries to be made at the Spencer Plant delivery point. Price and volume are determined at the time of nominations. The City buys gas from several spot market sources, which include Mobil Natural Gas. Ensercly Tristar Gas, and Trinity Pipeline Gas. For the year 1992, the City purchaseed approximately 1.7 M at an average price of $2.14/MMBtu. Approximately one half of the gas purchases in 1992 were through the Enserch contracts with the remaining supplies provided from other spot purchases. Based on a review of the gas supply prices for 1992 from Enserch, and comparing those sales prices to the natural gas futures price listed in Natural Gas Weak for the same piriod, the City's annual average price is $0.09/MMStu higher than the futures' prices. Figure 8-1 tabulates the natural gas future prices for the next 18 months, starting In August 1993, using future pricing as of mid-July 1993. 8-2 i )c ~7YJitM.GAS SUPPLY A forecast of Denton pricing is presented using the past result of Denton's a being $.09/MMBtu higher than the future's pricing. Also, Lone Star was contacted and a forecast for its WACOG was received for the same 18 month period. Based on this forecasting methodology, Lone Stars WACOG continues to be forecast higher than the spot purchasing through Enserch and others. Long-Term The following summarize- projected natural gas prices based on review of forecasts. The four price forecasts/projections are from the following sources: ► January 1992, Wharton Econometric Forecasting Associates (WEFA) Energy Forecast ► March 1992, Gas Research Institute (GRI) Energy Forecast ► January 1992, American Gas Association (AGA) Gas Price Forecast ► An "average" forecast of financial Institutions as of October 1992. The quarterly survey is part of the Petroleum Pricing Review, published by Randall & Dewey, Inc. (Houston-based investment banking finn). The forecasts show a wide range of viewpoints on the future trends of natural gas prices. Figure 8.2 shows historical and projected Iower48 nahml gas wellhead prices. The WEFA, GRI, and AGA forecasts assume there will be significant price growth in real terms. WEFA and CRI believe this real growth will begin in this decade while the AGA sees It occurring after 2000. Their rationale for significant price growth centers on the following beliefs: ► Gas demand wid exceed deliverability (the gas "bubble" of supply exceeding demand will burst). ► Natural gas will be a premium/preferred fuel due to new environmental concerns and requirements (e.g., CAA). By the mid-1990s to 2000, environmental mandates will have severely impaired price-induced fuel switchability to residual oil. ► New gas fields, on average, will be too small to replace reserves In a timely manner. Unconventional gas resources (coal-bed methane, tight sands gas) are not sufficient to change overall deliverability decline. 8-3 i Im."po~ .:l Figure 8.1 Natural Gas Near-Term Price Forecasts $3.80 3.60 ; $3.40 $3.20 .u $3.00 x'$2.80 ` $2.61/ .,y n..,.. ..u n... t. $2.40 . ..lt..•y 'Jyy ww ~~.w A .uu. nun $2.20 $2.00 Aug 93 Oct Dec Feb . Apr Jun Aug Oct Dec Sep Nov Jan 94 Mar May Jul Sep Nov Jan 95 w Natural Gas Denton Projected Lone Star Gas Futures Prices WACOG r~ Figure 8.2 131 Average Wellhead Prices of Natural Gas Long-Term Forecast N 14 ti 12 y.... r~ 10 44 g 11.1 uuu u.. u. u.u ..uu u. ......uu u. un...u..... u..... u... 1~~t~.. .~~.uu. . 11 I, O ' Z 11 , u.u uu u.. ........uuu u.uul.l n. u..luuln .nln1.......1 =1 N1i. u~y 1...~ 4 000..... u.. u.u.. u1'' 1111'/ , I! M/.1 r..1/• ~ L uuu. n..uu .un • .u. u. u.. .........u loirKu-r,•~•-1-1r' • ,:y.1 wIM•ffi~ u.un. u..... 2 O nu..uu .1... n. r- G 1 1970 1975 1980 1985 1990 1995 2000 2005 2010 W Years o~ Historical Data WEFA GRI AGA Financial Institutions v t //.;G ffiAi6ik CAS SUPPLY The survey of financial institutions represents the opposite thinking; that is, gas prices will have little or no real price growth, at least over the coming decade. The basis of this viewpoint is the following: ► Most demand forecasts show there is a sustainable surplus of North American natural gas supplies for the foreseeable future and, therefore, an adequate natural gas resource base exists to minimize deliverability decline (Including tax-driven coal-bed methane and tight sands gas production). In addition, much gas production is a by-product of oil production and has a relatively low marginal production cost. ► Environmental legislation including the Clean Air Act will not have a significant impact on natural gas demand before the latter part of this decade. ► Gas-on-gas price competition will help keep prices down. New gas transportation project (e.g., Kern River Pipeline) and expansion projects (e.g., Pacific Gas Transmission) will make more domestic gas available. Canadian gas will also be increasingly available. ► Producers who also have an equity interest in gas processing facilities (and their significant profit margins) will maintain production despite low wellhead gas prices. ► Natural gas prices have been below those of fuel substitutes (fuel on) for so long that all Industries with fuel-switching capability are already using natural gas, thus minimizing Incremental gas demand. ► The natural gas futures market precludes voluntary curtailment to artificially reduce supply because the producer has a locked-in financial price independent of the actual commodity price. ► At a price of approximately $3.50/MMBtu, Liquified Natural Gas (LNG) becomes economically viable on a large scale and impo.ts would Increase dramatically, contributing to a dampened long-term gas price outlook. For purposes of Denton's Long-Range Power Supply Study, the general long-term outlook on U.S. natural gas wellhead prices will be assumed to rise at or slightly above general inflation (t to 2 percent above pro*led inflation). 8-b I I I 1 SECTION 9 TM COGENERATION PLANT ANALYSIS Lutz, Dally do Brain (LDB) was employed to prepare a technical feasibility a y is s of installing a cogeneration facility at the Texas Women's University ('1-WU) campus to provide for the power and steam needs of the University. The analysis considered the feasibility of a joint project providing the University with its electric and steam requirements and providing surplus power to the Denton system. LDB's work included the review of a previous cogeneration plant study completed in 1986 and updated to reflect current costs and equipment arrangements. The following tabulated findings from the LDB study. • LDB's revised analyses projected that TWU s investment In a cogeneration plant would not have been offset by reduced cost of power and steam based on actual costs of electricity and natural gas purchased. • The results of the revised analysis indicates that the cogeneration project planned to specifically address the needs of TWU Is not now economkally feasible based on today's cost projections. Further analysis would need to be performed to evahrate the feasibility of a cogeneration project on the TWU campus sized to provide Improved, overall economics and resulting in considerably larger power output into the Denton system A detailed summary of LDB's investigations was provided to Denton in copies of LDB's July 26, 1993 report titled Technical Feasibility Analysis of a Cogeneration Facility at Texas Women's University. 9 -1 I LM CITY C ©U N C 1 w ~~pa00CCD ~p~C~~ to 4 r a m O * r o ~ t ~ x,00« w. k j G c t AgandaNo _a Age0dalleffl CITY OF DENTON CITY COUNCIL MINUTES;e-1L- - -i OCTOBER 20, 1993 Ar IZ2717 The Council convened into a joint session with the Trustees of the Denton Independent School District on Tuesday, October 20, 1993 in the South Green Room of the First State Bank. PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, chew, Cott, Perry, and Miller. ABSENT: None 1. The Council held a discussion regarding various issues relative to the City of Denton and the Denton Independent School District, Mayor Castleberry indicated that Hickory Creek Road would be paved in the vicinity of McNair School. Lloyd Harrell, City Manager, stated that council had approved bond proceeds of $100,000 to be used with Hickory Creek Road paving. The road would be stabilized with a five inch base of asphalt which would make it more of an urban road rather than a rural road. The road would be widened to some degree. The School District and tae City would have to work together when the paving was to begin as the road would have to be closed for several weeks. The City needed feedback from the School District if it would prefer that the City wait until summer when school would not be in session to begin the work. Mayor Castleberry asked about the District's plans to construct a road from Ryan High School to Mayhill Road. Superintendent Thomas replied that the road was not in the current issuance of the recently approved bonds but would start as a transportation access. Mayor Castleberry commented on the cooperation between the District and the City regarding the Teasley Lane fire station driveway situation. Council Member Miller commented on the Juvenile Diversion Task Force indicating that Dalton Gregory had been appointed chairman. He also mentioned the Visioning Kick-off which would be held on Sunday. Charles Stafford, School Board President, indicated that the Visioning Project would need many participants and encouraged all to become involved. He related an event he had read about in which a local government, a local school district and the board of realtors jointly prepared a show case of that city. He felt this would be a good idea to do for Denton. He felt that the City and the District needed to work together when the time came for the District to build a new school and that perhaps some type of joint I k r City of Denton City Council Minutes ~rrf)^JO October 20, 1993 J+,? Page 2 lL- ! rte' .Za venture with a school located next to a park facility. HEM also suggested a joint venture with the Cit;~, District and County commissioners regarding similar projects such as mowing and purchasing items. Mayor Castleberry stated that the City had started televising its Council meetings and was looking forward to the time when the District began their televising. Trustee Mike Wilson mentioned the possible expansion of Fouts Field and how the City and District might be involved. Council Member Cott suggested looking into the possibility of a future school being located near a Center for Aging which was a new concept being proposed in that field. Superintendent Thomas indicated that a future project might be a formalized joint agreement for grounds facility usage with the city. Trustee Jean Schaake felt that the agreement could be for the facilities as well as the grounds for such areas as the computer labs, libraries, etc. Council Member Cott indicated that the issue of aging/retirement would be a good subject for the Visioning Project. Council Member Brock felt that it was important to have the District officials aware of the long term planning for the City. Mayor Pro Tem Smith mentioned the City's Open House which would be held October 28th and encouraged everyone to attend. With no further business, the meeting was adjourned at 1:10 p.m. Bob Cast eberry, Mayor City of Denton, Texas Jenn er Wa tern City Secretary City of Denton, Texas ACC00165 CITY OF DENTON CITY COUNCIL MINUTES October 26, 1993 ~Y'zo The Council convened into the Work Session on Tuesday, October 26, 1993 at 5:15 p.m, in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tea Smith; Council Members Chew, Cott, Perry, and Miller. ABSENT: Council Member Brock 1. The Council convened into the Executive Session to discuss the following: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Considered action in Williams et al v abrales, et al. B. Real Estate Under TEX. GOVOT CODE Sec. 551,072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 2. The Council received a report, held a discussion and gave staff direction regarding the City Employees' Health Insurance Program for the plan year beginning January 1, 1994. Tom Rlinck, Director for Human Resources, stated that purposes of his presentation would be to review the background/history of the planning session in June regarding health insurance, review the analysis of the health proposals received with the evaluation of each with respect to total plan costs, rate guarantee, the schedule of benefits, the network providers and service and administration issues. There would also be a staff recommendation. At the strategic planning session, it was a goal for the City to provide adequate and quality health care for employee and dependents at a cost which the employee and the City could afford. The renewal rate increase from Philadelphia Life Insurance Company (PALICO) was 8.724. PALICO had outlined several conditions under which it would renew its contract with the City and some of those were considered negative contingencies. Staff decided to re-bid the health plan to ensure the City had a back-up position in the event the negotiations with PALICO failed to guarantee a stable health insurance program during the 1994 plan year. Bids were received from Texas Municipal League with a rate of $223 for the employee cost, Blue Cross with a rate of $239 for employee cost, New York Life/Sinus with a rate of $261 for employee cost, Aetna with a cost of $151.38 for employee cost and Harris Methodist Plan with a cost of $188.50 for employer, cost. The PALICO renewal rate would be $218.80 for the employee cost. Evaluation of the bids included the total plan cost, rate guarantee, schedule of benefits, network providers, Harris service Methodist administration. were r compared for benefitss coverages, I City of Denton City council minutes October 26, 1993 Page 2 and costs (co-pays, deductibles, out-of-pocket maximums, etc.) Looking at the City costs for the three programs, Aetna would be at a lower cost for the organization at $1 million, PALICO would have $1.5 million in City costs, and Harris Methodist at $1.3 million. Palico, compared to Aetna on emplovee costs, was approximately $180,000 more because the rates for dependent coverage were loaded high in that plan. The Harris Methodist dependent rates were $145,000 less in the 9 remaining months for employ.3 costs. In looking at total plan costs considering what both the employee would pay and what the City would pay, PALICO was approximately $2.2 million, Aetna was $2.2 million and Harris Methodist was $1.9 million. From a cost perspective, the Aetna proposal would save the City $400,000 but the employees would be required to pay an additional $180,000 which was detrimental to them. With the current individual rates with PALICO, the employee paid $11.50, for spouse coverage they paid $1230 child coverage was $80 and family coverage was $150. In Aetna's Plan III compared to the PALICO proposal, the employee would pay a higher amount than under the PALICO rates as the rates were higher for family coverage. With the Plan One design, the employee would pay significantly more than with PALICO. On the Harris Methodist plan there would be a reduction over what the employees would be paying on the PALICO plan in all categories in the HMO only and on the indemnity plan there was a $10-15 additional cost over what they would be paying and lower family costs. In looking at total plan costs, the City could save with the Harris Methodist plan over what it was currently paying with PALICO by approximately $100000 and over what was proposed would save approximately $130,000. With the 14% which was left in the budget, there would be a $200,000 lower cost to the organization. PALICO's renewal rates were guaranteed for 12 months, the Aetna quoted rates were guaranteed for 12 months. However, with the Harris quote of 12 months they also agreed to a contract provision that the increase would not exceed 151 on the HMO plan through the year 1996. That would be a 9.9% maximum increase the next year and the following year would be no more than 15%. This would help control and budget costs over the next several years. Dave Palatiere, Coopers & Lybrand, presented a history of the negotiations involving the shared risk arrangement with the hospitals and doctors. When looking at the schedule of benefits, the PALICO proposal would have higher co-pays, deductibles, and out-of-pocket maximums. There was a $50 diagnostic co-pay, a $150 drug deductible, employee referrals, and one plan with no choices. This would be the first year that the employee would be required to go through a referral process in order to see a specialist which would be the employee's responsibility to get permission to do sc. An employee could not go to a specialist unless he was given ~I i e 3 City of Denton City council Minutes ..aS October 26, 1993 Page 3 ll /G' Q3 permission to do so by an outside agency. The Aetna plan had reasonable co-pays, deductibles and out-of-pocket maximum's plus an option to select from a high or low plan. Selected doctors would handle referrals to specialists, there was only one local pharmacy with no mail order service available and no mental health providers except in the network. With the Harris Methodist plan there were reasonable co-pays, deductibles and out-of-pocket maximums with an option to select from a high or low plan, the employee's selected doctor would handle referrals to specialists, a $10 co-pay for drugs with a mail order service available and an in-Denton representative to assist with questions and problems. The higher plan was a point of service plan which meant that the employees had the flexibility to use any doctor they wanted. Employees could use Denton Regional or any other hospital but would pay more if they used a non-network hospital. Mayor Castleberry asked about the additional costs associated with that option. Palatiere replied that there would be a $500 deductible and the co- insurance was a 70/30 payment up to $4,000. Mayor Castleberry indicated that city employees had used Denton Regional more than HCA. He asked how both hospitals could be made available to them under the Harris Methodist plan. Palatiere indicated that he had addressed that issue with Harris Methodist. They acknowledged the preference and utilization for Denton Regional in the employee population and were agreeable to working with Denton Regional to make an arrangement. At this point in time there was no written contract but would work toward a relationship with Denton Regional. Klinck indicated that some type of letter of understanding or a contract amendment provision would be signed in which Harris Methodist would agree to look at additional hospitals and providers. Council Member Miller expressed concern regarding entering into a three year contract with a letter agreeing to study the issue. Three years was a long tima. Klinck indicated that the City would not be locked into a second or third year contract. Council Member Miller stated that in a community of Denton's size, to lock in only one hospital for an employee group of this size and the fact that the group was the City responsible to the citizens of i r } Y. City of Denton city council Minutes October 26, 1993 Page 4 the community, was a difficult situation. Both hospitals had expanded in this community and to have an organization split this care put the City in a difficult position. Palatiere replied that Harris Methodist had expressed a commitment to work with Denton Regional but he could not tell the Council that there was a contract signed with Denton Regional Hospital. Council Member Perry felt that an issue to consider was that both hospitals had an opportunity and Denton Regional had an edge over HCA. The City was looking at a matter of reasonable costs for a health plan to City employees which they could afford. He felt there was a natural balance for preference and that the employees would insist on doctors which would keep negotiations moving. This was a matter of cost and reasonable care. Council Member Miller felt that an alternative was to offer the same opportunity to both hospitals. Harris Health Care had selected HCA but he felt that if Denton Regional was willing to provide the care at the same cost, it should be made available. Council Member Chew felt that Denton Regional might not go with same price structure. Mary Pat Blagg, Harris Methodist, stated that talks and negotiations were on going. Bob Hurst, Director of Sales for Harris Methodist, stated that Harris Methodist had established this program with HCA prior to the City proposal. Harris Methodist made partnership commitments with its providers and on an ongoing basis was looking to see what was needed to-stay ahead of the curve and to be the plan of choice in the community they served. Harris Methodist was looking for long term relationships with its providers. Harris Methodist would continue to assess on an on-going basis what was needed for its program. Mayor Pro Tem Smith stated that Harris Methodist would continue to try to work with Denton Regional and get it on line. Hurst replied that Harris Methodist was open to new providers and was riot shutting any doors at this time. Council Member Miller asked if other providers would be an addendum to the contract. Klinck stated that a letter of agreement or understanding or a contract amendment would be provided in writing which would f3 ~ I City of Denton City Council Minutes } j ?r October 26, 1993 Page 5 .Z4 indicate that Harris Methodist was being responsive to ~additional providers/hospitals. For any kind of managed care program there was a balance between the number of providers and the utilization issue. Palatiere stated that with the PALICO plan there were 40 primary care physicians, 60 specialists, both hospitals, 5 pharmacies including independents, referrals to specialists would be the employees responsibility through Cost Care. Managed health care had to be tied in with the cost structure. The more providers there were and/or the more hospitals, the higher the costs. Council Member Cott asked if it were more costly on a unit basis or on a total basis. Palatiere asked if he were referring to a unit per employee per year. Council Member Cott stated that the city now offered a certain menu of service and because it was expanded, was that menu now more costly or was it more costly because of core providers. Palatiere replied it appeared to be more on the provider issue. An HMO unit cost was a per member per month basis. The unit cost on an HMO basis was lower than a unit cost on a point of service basis which was the current plan because when a hospital or provider was used, all employees would be using that facility or doctor. There was a leverage to have lower per diems, better risk contracts and the physicians would take a lower fee schedule because they would have more volume. As the network providers were expanded, there was less leverage which would result in higher costs. Unit costs under a managed care program would be lower than an indemnity program. Council Member Miller state that last year there was no control on which provider to go to. Two providers for hospitals would be different than if there were five or ten. He felt there was a degree factor involved. Klinck replied that a factor to consider was the number of individuals servicing. Council Member Miller asked if another provider would have to be willing to agree to the same fee schedule. Klinck replied that there was a difference when there was an exclusive arrangement. The volume was diminished to any one hospital when there was more than one on the plan. s q i i z City of Denton City Council Minutes y October 26, 1993 Page 6 P /lv -93 Palatiere stated that the hospital would lose volume in the number of patients and would not get the same level of contract with HCA and match with Denton Regional. City Manager Harrell stated that if the City were on a self-insured program, it could make those negotiations, This was for a fully- insured health program. From a staff level, it was felt that there would be an issue because only one of two hospitals was included in what appeared to be t:e best bid. That was what was communicated to Harris. This might have to be worked out from a system standpoint. It was difficult to not look at the difference in the costs with PALICO to stay with both hospitals. It was not a responsible recommendation other than to give a strong recommendation to Harris to try and add Denton Regional. Council Member Perry asked if Council accepted this plan, would it automatically prevent employees from using Denton Regional. Council Member Miller stated that they would be able to use Denton Regional but would not have the same coverage. He questioned if the issued had been raised and was not satisfied that it had been done completely. Hurst stated that Harris Methodist was not an insurance company. It had started out as a hospital system and had now changed to a provider for financing, management and providing health care. They were in a partnership with the doctor groups and hospitals. Palatiere stated that Aetna had 21 primary care physicians, 70 specialists, both hospitals, only one pharmacy with no independents, and referrals to specialists through primary care physician, Council Member Perry stated that he liked the feature of the primary care physician as the source of referral to a specialist. He felt it added quality to the program. Palatiere stated that the Harris plan had 16 primary care physicians, 30 specialists, Denton MCA hospital, four pharmacies plus independents. There was a strong commitment to working out an arrangement with Denton Regional. In the area of administration and service, PALICO had some difficulties in claims payments, balance billing, over all responsiveness and service on the current contract, PALICO had no in-Denton representative. In discussions with the Aetna service, there were some concerns expressed with service and administration, concerns about their on-going commitment to the Denton community and had no in-Denton representative. G43_ City of Denton City Council Minutes October 26, 1993 Page 7 sJ Council Member Perry felt that it was difficult when the provider was away and not active in the community and committed to the community. No personal contact was difficult. Palatiere stated that the Harris references were very complimentary of service with follow-through and a willingness to service employees, dependents and providers. They had an in-Denton representative and were involved with the community. Klinck stated that the recommendation was to change to the Harris Methodist plan which was the lowest overall plan cost, lowest cost for dependents, a superior plan design, the doctors and other providers were stable and Denton established, would improve the ability to budget, control and manage long-term health costs, the plan was endorsed by the Employee Insurance Committee and Executive Committee, had an in-Denton representative, and very positive references. Council Member Perry asked if there were any plans to expand the mental health providers as there were only four currently on the plan. Slag g replied that this issue had been discussed and they were looking to add additional providers. Council Member Miller stated that he felt good about the proposal from a cost standpoint. He asked that Harris Methodist continue to study the possibility of including an additional hospital. Hurst stated that there were three more primary care physicians who would be added to the plan as soon as the contracts were returned, Council'Member chew felt that the rate with PALICO was original.y too low and that they had not looked at the census. The service with Aetna was very poor and felt that this was an excellent program. There was a need to try and get the additional hospital on the plan. The proposal would be a good savings to the City and to the employees. Mayor Pro Tem Smith agreed with Council Member Chew that this was a fine plan and that Harris Methodist should try to add the other hospital and more providers. Mayor Castleberry indicated that the consensus of the Council was to move ahead with the Harris Methodist plan including the letter of intent for additional providers and an additional hospital, r City of Denton City Council Minutes lee October 26, 1993 page 8 /4" Q3 2. The Council received a report, held a discussion and gave staff direction regarding the City0s Wellness Program for employees. Tom Klinck, Director of Human Resources, stated that Council authorized the implementation of a wellness program in 1993-94. It was felt that the most impact would be to have a health risk assessment and direct those activities so that over the long term it would be known where the City stood as an organization. The purpose of the Employee Wellness Program was to provide health awareness and education, participation in a wellness program, encourage non-tobacco use and funding for the program. The assessment would gather demographics as far as age, gender, history, eating habits, exercise, stress, etc., and provide health screening in the areas of resting blood pressure, blood chemistry, body fat, etc. From that assessment an individual would be given a confidential report on his current status and a recommendation on how to improve himself. The City would received a comprehensive report profile on the entire work force and recommendations on where to focus the wellness issues. The health awareness/ education program would include information on smoking cessation, nutrition, physical fitness, stress management and exercise. The health risk assessment would provide a better picture of the employee organization and the information would benefit both the employee and the City and might give the employees a chance to make changes for healthier lifestyles and potentially lower health claims. If an employee chose to participate in the program, they would be rewarded with an additional $10 per month contribution for the health insurance premium. If an employee did not participate, the contribution would be less and the employee would pay a higher premium. Council'Member Miller stated that medical plan was a $188 which the City would pay. What was really being done was to penalize people who did not participate in wellness. Council Member Cott stated that if the city were Involved with such ~ a program and had knowledge that there was a person outside of health who was not willing to be involved and if he were to die, what would be the Cityts liability. Mike Bucek, Assistant City Attorney, stated that such a scenario would be in perhaps a fire department and such a claim would be handled as a workers compensation claim. Council Member Cott suggested that the City should make sure it was legal to do this. 3 s~ city of Denton City Council Minutes October 26, 1993 Pdge 9 Mayor Castleberry asked if this were a voluntary am v l Klinck stated that the contribution that the City wouldmake would be tied to an employees risk to health claim costs. eucek stated that the normal approach would be if there were confidential statement regarding a health risk and accommodations s had to be made, the employee would need to notify the City and that would have to be worked through. Council Member Cott stated that because the City would be organizing, arranging, and managing the process there might be a problem. Council Member Perry stated that the City would pay $188 per employee and if that employee did not participate in the wellness program and used tobacco, it would pay $168. City Manager Harrell stated that the City did not have to pay $188 per employee. The recommendation through the wellness Committee was to set the base participation rate at $168. If an employee was willing to take the health assessment, the City would contribute another and if the eml were a the Cit contribute0another $10 which y would raise thenonsmoker $188. City' contributionuto Klinck stated that the 1993-94 budget had funded health risk assessment. It was projected that the assess 0 for the ment cost $25 per employee for a total Cost of $22,OOO. The educational would program would cost an additional $14,000. Additional funding of $19,000 was needed to cover the difference. It was estimated that approximately 200 tobacco users would pay some additional premium and that money would go back into the City budget. Consensus of the Council was to proceed with the program. 4. The Council received a report, held a discussion and gave staff direction regarding amending the zoning ordinance. Due to a time constraint, this item was considered during the Regular Session. 5. The Council received a report, held a discussion and staff direction regarding code enforcement activities. gave Due to a time constraint, this item was considered during the Regular Session. City of Denton City Council Minutes October 260 1993 Page 10 The Council convened into a Special Call Session on Tuesday, October 26, 1993 at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry; Mayor Pro Ten Smith; Council Members Chew, Cott, Perry, and Miller. ABSENT: Council Member Brock 1. The Council considered approval of a resolution supporting the University of North Texas request for Division I football status. Mayor Pro Ten Smith left the meeting. Lloyd Harrell, City Manager, stated that Council had received a presentation at its last meeting from a University of North Texas representative asking Council to officially lend support for the Universityfs effort to move from IAA to IA level in its football program. Following presentation to the Council, staff was asked to draft a resolution formally offering that support. The following resolution was considered: NO. R93-066 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, EVIDENCING SUPPORT TO THE UNIVERSITY OF NORTH TEXAS IN ITS EFFORTS TO MOVE TO I-A COMPETITION] AND PROVIDING FOR AN EFFECTIVE DATE. Cott motioned, Miller seconded to approve the resolution. On roll vote, Cott, "aye", Miller "aye", Chew "aye", Perry 'taye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Pro Ten Smith returned to the meeting. 2. The Council received a report regarding a possible half cent sales tax to reduce the property tax. A. Dr. Weinstein B. Comments from Other Committee Members C. Discussion regarding Council procedures to consider the issue and gave staff direction. As Dr. Weinstein was not present, Items B and C were considered. B. Comments from Other Committee Members Alton Donsback stated that he began the process with a reservation k x City of Denton City council minutes 16Z' October 26, 1993 Page 11 about adding a half cent sales tax because he considered it to be a regressive tax. After listening to all of the presentations and hearing the effect that it had on other communities which had already adopted it, he felt that it would be very good for the City of Denton. He still had a reservation that the one group which would be hurt by adding to the sales tax and lowering the property tax would be the lowest income individuals. A question remained on how to protect them. The City already had a program for such individuals for their utilities, and it seemed that to lower the utility base would be a very easy way to make up the $20-30 which low income individuals would be paying extra in sales tax by adding the half cent sales tax. He felt that the proposal would be good for the City, that it would add to the tax base, and enable the city to do more for its citizens. But it must be kept from hurting the poorer segments of the City. He urged the Council to give a tax break by cutting the utility bills of the lower income groups. Council Member Chew stated that in reading the discussions of the Committee, he found the same statements had been made by Bill Luker. Donsback replied that it was also the basis of Dorothy Damico's vote against the proposal. Council Member Chew stated that this would be one way to make the proposal more equitable across the board for all citizens of Denton. City Manager Harrell stated that the city had a very low rate on the per kw usage basis for low users of the electric system called the Lifeline rate. The City of Austin might have a slightly better rate than Denton but beyond Austin, Denton's rate was the most favorably structured to give relief to those individuals who used a very small amount of electric utilities each month. The theory was that those individuals who could not afford the necessities would watch the amount of utilities used. Dr. Luker had suggested moving up the Lifeline qualification level to allow more individuals to take advantage of that low electric rate. It was felt that this was an idea worth exploring and the only reservation of the Committee dealt with low income individuals and the effect on those individuals. A. Dr. Weinstein Report City Manager Harrell stated that Council had requested that an expert opinion be used regarding this issue to analyze the economic impact of an additional sales tax. Dr. Weinstein was a well known expert on economics in Texas and the nation. a a J City of Denton City Council Minutes - October 26, 1993 Page 12 J Dr. Weinstein stated that one issue of the proposal dealt with regressivity - would the change between sales and property taxes make the overall revenue system more or less regressive. He felt that a sales tax was probably no more regressive than a property tax. Some economists felt that a sales tax was more regressive than a property tax. He felt that local conditions would determine if a tax were regressive or not. A property tax could be more or less regressive depending on local market conditions. In Denton, with a tight rental market, many renters and a low vacancy rate, it was easier to pass a property tax on to a renter. That was not to say that if property taxes were reduced that rents would fall. If the property tax were reduced, it would temper future rent increases due to more benefits to the landlord. He felt that rents would rise more slowly if there were some property tax relief. A second issue was who would pay for the sales tax increase. People buying goods and services which were taxable would be paying the increase. This would be a shift to nonresidents. Denton would export a fair amount of its sales tax because of a large regional mall, the outlet mall, and the fact that there were other people who came into the City of Denton from outside Denton to shop. There was also a large student population. Some of those students received financial support from outside the local community, and r-any of them resided in university housing and therefore paid no direct or indirect local property taxes. Part of the property tax was born by nonresidents and if the sales tax were increased by a half cent, a portion of that would also be born by nonresidents. It was assumed that 20% of the local retail sales were by nonresidents and the increased tax burden per Denton household would have been $45 in 1992. A third issue was how the proposal would affect retail sales. There was a concern that if the sales tax were higher here, it might encourage people to shop elsewhere. That could happen in Denton but it was predicted than it would be a very 'small differential. In the worst case scenario, Denton's retail sales might drop initially by 1/2 percent with a 1/2 percent tax rate increase. It was felt that this would be such a small increase that the 1/2 percent increase would not alter consumers behavior very much. In 1992, this would have reduced taxable sales in Denton by $1.9 million. A fourth issue dealt with the impact of property tax rates on economic development. There was no guarantee that a lower property tax would attract business but it also would not hurt. In terms of economic development a lower property tax would help Denton look better in the long run but would not necessarily attract new business. In terms of an image of a community having a ta>: rate in line with neighboring communities, it would be a plus. A final issue dealt with stability, predictability and elasticity. It was felt that over the long term the sales tax would provide better predictability than the property tax. The sales tax was fairly reliable. It did not always go up k y a T X City of Denton City Council Minutes October 26, 1993 Page 13 G but when compared to the property tax was more stab]a in rates. As a third party assessment he felt the proposal would be a good deal for the city and would vote in favor of such an issue. Council Member Cott stated that no matter what was deliberated by Council, students were welcome in Denton. He felt that sometimes the way the issue was deliberated, it appeared that the City was going out after the students to pay. He felt it was important to do whatever was necessary to not encourage exploration outside of Dei ton for purchases. Council Member Perry stated that a tax which resulted in an unequal distribution was a regressive tax. For example, an individual had a reduction in property tax but did not pay accordingly the increased :ales tax. Would it be possible in Denton under this plan to get a reduction in property tax and not pay into the sales tax. Weinstein replied that in the aggregate sense, this program was suppose to be revenue neutral. In some cases there would be an individual who would pay less in property tax but more in sales tax. In other cases there would be times where future increases in property taxes would be greater than the additional sales tax paid. It was not possible to predict who the losers and winners would be. It was known that higher income people had a higher degree to consume. To the extent that higher income people consume more than lower income people, the increase in the sales tax rate would be more equitable. In 50-60 years of research, it was concluded that it was very difficult to redistribute income, at the local level, through tax policy. Local government could not redistribute very much as it was dealing with relatively few dollars. Council 'Member Perry asked if there would be any group which would profit and any which would lose with this proposal. Weinstein replied that low income people, particularly renters would benefit because of the decline in rent hikes. Some businesses would benefit from the lower property tax burdens including the retailers who would collect more sales tax. Council Member Perry stated that the landlords would receive a 14% reduction in property tax and would be reaping a windfall with this proposal. Weinstein replied that to the extent that it would lower the pressure on landlords, it would have a beneficial effect on renters in terms of restraining future rent increases. i I r r City of Denton City Council Minutes October 26, 1993 Page 14 Mayor Castleberry stated that it would not reduce rents but it would help to not have rent increases for a long period of time. There had been much pressure on apartment owners because of the escalating taxes. Council Member Perry stated that the revenue from sales tax was more stable than property taxes over the long term. Weinstein replied that in the terms of stability and predictability, the sales tax base was more stable than property tax. The property tax would continue to be the major work norse of local finance. He did see the case for some property tax relief in terms of this proposal. City Manager Harrell stated that in this instance, although in a minor way, there were two different universes. Shifting from a property tax to a sales tax would enlarge the universe and more individuals would participate in making up that same amount. Weinstein stated that there would be more people locally and a greater contribution from outside the region. Council Member Miller stated that the reduction in property tax would be approximately 203. He also hoped that all through these discussions that no one would feel that the City had ill feelings against nontaxable entities or towards students. Weinstein replied that many of the low income people in Denton were students who lived in rental housing and who would benefit from a more constrained rental market. Council Member Miller asked if Weinstein saw any downside on this issue. Weinstein replied none at all. Council Member Chew asked if there had been any other statistics collected regarding the number of shoppers outside of Denton. Weinstein replied not beyond the studies which had been done elsewhere. Council Member Chew stated that basically an individual would be taking what was saved on the property tax and using it for the increased sales tax. Weinstein replied that that would be probably true for the community as a whole. k k City of Denton City Council Minutes October 26, 1993 Page 15 / 7P4 Council Member Chew asked if it would be prudent to work out equitable terms with regards to utility rates to help offset low income individuals. Weinstein replied that if the City were trying to provide some type of fiscal relief for low income individuals, there would be a greater impact by raising the Lifeline threshold than property and sales tax differences. Council Member Cott stated that it needed to be realized that this was a broad base of taxpayers which paid for the Lifeline program and they needed to be consilted in this matter. City Manager Harrell stated that there were two different stores which collected data by zip code. one store was Carter's in the outlet mall and the other was Service Merchandise in the Golden Triangle Mall. Carters reported 17% of its sales came from Denton with all of the remaining sales coming from outside of Denton. Mayor Castleberry stated that the majority of the money generated in the outlet mall was generated from those outside of Denton. Weinstein replied that over long term, the sales tax base might offer more potential revenue than the property tax base. Mayor Castleberry stated that at this time, McKinney and Frisco had passed the half cent increase. Decatur was in the process of passing the half cent and Lewisville was getting ready to appoint a task force regarding the issue. Gainsville was considering such an Increase. Mayor Castleberry stated that the consensus of the Council appeared to place the proposal on the Nov. 2 meeting. City Manager Harrell stated that two key decisions needed to be made within the next week or the following week. one was the need to obtain preclearance for the election. Staff would like to present Council with an analysis of election costs and get direction on how to proceed with a possible election. Calling the election could wait until the last meeting in Nov. in order to have the election on Jan. 15th. Consensus of the Council was to place the proposal on the next work session for discussion and on the regular meeting for a decision on whether to call the election. The Council returned to the Work Session items. 9 i yyv L 1 City of Denton City council minutes October 26, 1993 Page 16 4. The Council received a report, held a discussion and gave staff direction regarding amending the zoning ordinance. Frank Robbins, Executive Director for Planning, stated that the current zoning ordinance did not fulfill the mission of the City. The Planning and Zoning Commission and the Zoning ordinance Task Force felt a rewritten zoning ordinance could do a better job for the City. One of the most fundamental problems of the current ordinance was that there were nine nonresidential districts which were not being used. Those were not being used as the standards were too weak and would provide incompatible zoning next to existing standards. Some issues raised by council regarding the issue included: (1) The standards should enable some flexibility in order to take into account different situations and places. There should be some way for differing parties to discuss and reach a balanced solution. Comments for that issue were that conditioned zoning and the planned development enabled that flexibility. The mixed use district did not mandate set standards but was a guideline. (2) Buyers needed to be aware of what was allowed next door. (3) Piecemeal amending would enable more time for Council to evaluate the individual recommendations from the Task Force. (4) Deal with the simple parts first. (5) A needs analysis was needed for each recommendation. (6) Cost of new standards and regulations. (7) MXD allowed for too much staff discretion. Task Force recommendations included (1) Having a user friendly format - staff had developed a number of separate documents such as a quick reference chart, consolidated standards for each district and flow charts which achieved the goal of improving service delivery b making the rules easier to find, communicate and use. (2) Reorganize the Board of Adjustment with a new non-conforming amortization section in order for the article to be more understandable and consistent and to add provisions for amortizing nonconforming uses to be more consistent with court made law. (3) Design guidelines for all site plans for planned developments, specific use permits or conditioned zoning in order to promote quality development in the city, preserve natural resources and encourage environmental sensitivity, and would compile the Denton Development Plan policy and regulation now in place into one aasy to use document. (4) Update parking standards reasons which would allow for shared parking and fewer variance requests and off-site declarations and would be consistent with other metroplex cities. (5) Enable special districts for special places, such as for additional neighborhood presentation areas, for instance the TWU- Alice-Elm Street area, scenic entranceways, industrial parks or flood plain overlay districts which would initially incorporate the existing Historic District and the Municipal Airport Zoning regulations. (6) Heavy environmental impact district would be a new district which would replace the heavy industrial district and 3 i 7 K City of Denton City Council Minutes October 26, 1993 --5/--` Page 17 the out of date performance standards section. The district would be intended to accommodate heavy industrial uses and manufacturing activities which required special consideration and would incorporate additional regulations to ensure compliance with State and Federal requirements and consideration of future transportation needs. (7) Three new residential districts in addition to the current residential district which would be a single family estate, a single family 3.5 and manufactured housing district. (B) Antennae standards which would provide new regulations with regard to the location, height and construction standards for antennas, satellite dishes and support structures. (9) Mixed use district providing for bufferyards, a master plan policy as standards, policy sensitive site plan triggers, and wider notice for heavy im7act uses. The Planning and coning commission had strongly recommended to Council that the pro,:ess be continued. Council Member Cott asked that the issue of a motor home on an individual's lot be addressed. Council Member Perry asked if this proposal would replace the Denton Development Plan. Robbins replied no that it would be a tool to implement the Denton Development Plan and would be more consistent with the Denton Development Plan. Consensus of the Council was to proceed as recommended by the Planning and Zoning Commission. 5. The Council received a report, held a discussion and gave staff direction regarding code enforcement activities. Frank Robbins, Executive Director for Planning and Development, detailed what the Code Enforcement office did and how that was done and passible service improvement. The Code Enforcement Office performed such activities as high weed and grass issues, trash/garbage/debris code violations, signs, zoning, and view obstruction. Council Member Cott asked if there were a level of enforcement. Could the Council decide on what each category of enforcement would cost and give an awareness of cost for each category. Mayor Pro Tem Smith asked what was the number of individuals in the Code Enforcement Office. Robbins replied that there were three code enforcement officers with some clerical help. The City was divided into three areas and ~ 1 1 f City of Denton City Council Minutes October 26, 1993 Page 18 c~4~r~4 each officer was assigned to an area. once a violation was noted, the officer would try to make personal contact with the individual to work out an abatement of the violation. If that did not work, a letter describing the violation and when the abatement should take place was sent. If the problem was being worked on, the time frame could be extended. If there were no cooperation, the violation would be taken to Court. In regards to the mowing costs, the current contractor was a minority business enterprise. The unit and aggregate costs were significantly less with annual contracts. Single lot contracting was about 40% more expensive. There was competition on an annual basis and the quality and timeliness were more effectively assured with an annual contract. Annual contracts were less costly to administer than single lot contracting. Consensus of the Council was to continue with the current mowing operation using an annual contract basis. Robbins continued that them was a need for a shift in the organization of the Code Enforcement Office moving from a traditional kind of management toward self-directed work teams. The teams would have a set of objectives which would enhance the focus, orientation and individual commitment of the organization. It was hoped that this would provide for improve quality, productivity, and reduce operating costs. With no further business, the meeting was adjourned at 8:50 p.m. BOB CASTLEBERRY, MAYOR CITY OF DENTON, TEXAS JENNIFER. WALTERS CITY SECRETARY CITY OF DENTON, TEXAS ACC00167 =CITY ~ =COUNCI l . o 1 d y r C N S ,.~'JV l.~. is .3 D AaWa No. MEMORANDUM To: Tom Shaw - Purchasing.'Manager From: Tom Klinck, Director Of Human Resources Date: October 27, 1993 Subject: Employee Health Insurance Program - Bid 0 1523 Consent Agenda - November 16, 1993 Tom, this memo is to request your assistance in placing the bid for Employee Health Insurance on the November 16, 1993 City Council Consent Agenda. I've enclosed our City Council Report on this item from the October 26, 1993 work Study Session. As you'll note, the Harris Methodist Health Plan bid was determined to be the lowest bid meeting bid specifications based on total plan cost (City and employee costs). Additionally, there were a number of additional factors that were used to evaluate the bids that made the Harris bid the most responsible bid. The City Council concurred with the staff recommendation to place our employee health insurance coverage with Harris Methodist Health Insurance Company effective January 1, 1994. The City's cost for the remainder of the 1993/94 Budget year (January 1 - September 30, 1994) is estimated at $11367,379. The City's 1993/94 budget includes health insurance costs for the same period of approximately $1,569,149. Thus, there is estimated to be $201,770 less expenditures than budgeted. If you need additional information or a point clarified, please let me know. Thomas W. Klinck tsmem94a.tk 10/27/33 t DATE. October 26, 1993 CITY 99LL.REF'ORT FORMAT WORK SESSION TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: city Employee's Health Insurance Program - Effective January 1, 1994 RECOMMENDATION: It is the staff's recommendation that the City Council authorize staff to enter into a contract with Harris Methodist Health Plan (Harris Methodist Plan) to provide health insurance coverage for City of Denton employees and their dependents for the plan year January 1 to December 31, 1994. SUMMARY On September 24, 1993, the City received eight bids for a (silty-insured managed carr leaith insurance program. Six bids were on fully-insured basis, and t-o were on self-insured basis. The two self-Insured bids did not meet sp--1fications. Staff reviewed the six proposals that met our bid specificatio s for a fully-insured program. The following criteria were used to evaluate the bids: 1) total plan cost using monthly premiums quoted and projected enrollment (City cost and employee cost); 2) length of rate guarantee; 3) schedule of benefits and plan design features, such as co-payment, deductibles and out-of-pocket maximums; 4) Network providers (Doctors, hospitals, and other medical providers) S) ability to provide quality service for providers, employees and dependents, and administering contract provisions. Considering the combined relative Importance of these criteria, our analysis shows that the Harris Methodist Plan is the most advantageous to the City. Exhibit I-A and 1-8 displays the variance between the City cost, employee cost, and combined plan cost for the two lowest cost bidders (Harris Methodist Health Plan and Aetna/Southwest Health Plan) and is compared to the proposed renewal rates of Philadelphia American Life Insurance company (PALICO). As shown in Exhibit 1, by awarding a contract to Aetna/Southwest, the City could save approximately $398,000 over the current proposed PALICO renewal costs for the 9 months remaining in the 1993/94 budget. However, it is still felt that the Harris Methodist plan is the most advantageous plan overall because dependent (family) premiums are considerably less than Aetna's dependent (family) premium rates. c4 i 4 W 1. October 28, 1993 City Council Report on Employee Health Insurance Page 2 X Employees who cover dependents (and pay this cost) would pay considerably more out of pocket If the City placed its health insurance coverage with Aetna (see Exhibit III for premium rate comparisons). In addition, Harris Methodist has assured the City that it will guarantee that the HMO component rates will not increase more than a total of 15% over a 7 year period. There is no guarantee, beyond one year, against any rate increases for either Aetna or PALICO. Thus, with the Harris Methodist plan, the City would be in a position to better budget for and control long-term health insurance costs. The renewal rates quoted by our current vendor, Philadelphia American Life Insurance Company (PALICO), are higher than Harris Methodist Plan's rates. E,thibit II provides an analysis of the advantages and disadvantages of each of the three health insurance programs under consideration. Based on these issues, it is the staff's recommendation to place our health insurance coverage with Harris Methodist Health Plan. 'tre are proposing the Harris Methodist Plan's Options I and III to employees in 1994. This will provide employees an opportunity to choose during enrollment either: o a Health Maintenance Only (HMO) Only - Option I OR o an HMO py Indemnity Plan - Option III Exhibit III shows the monthly premium rates for the two Harris Methodist plans and the same t►o options with the Aetna plan compared with the proposed PALICO premiums. Our cost-analysis of the Harris Plan shows that the City would be approximately $2010110 under the 14% increase currently in the 1993/94' f health insurance budget (see Exhibit IV). This assumes that the City's contribution for all employees would be based on the `Employee Only' premium ($188.50) for the Harris Methodist HMO Only (Plan I). The Employee Insurance Committee (EIC) has reviewed the Harris Methodist Plan and unanimously agreed to recommend it to the Executive Committee and the City Council. Following the Executive Committee's approval of the EIC's recommendation, staff requests Council direction to: o develop a service agreement with Harris Methodist Health Plan to be brought to the Council to consider for approval in November, 1993; and o develop a transition and open enrollment plan to implement the Harris Plan, should the City Council give staff the final approval to place the employee health insurance program with Harris Methodist Health Plan, October 26, 1993 City Council Report on Employee Health Insurance Page 3 $ACKOROUMD: In June 1993, the City began negotiations With Philadelphia Life Insurance Company (PALICO), the current employee health insurance carrier. In a letter to the City, dated August 9, 1993, PALICO outlined the Conditions under which it would renew Its contract with the City of Denton (see Exhibit v). Although a risk-sharing arrangement was one of the conditions for PALICO's renewal with the City in 1994, there were other Intervening factors that had to be resolved to ensure that we had stable and guaranteed rates in 1994. There were several negative contingencies built into PAL100's renewal, Thus, staff decided to re-bid the health plan to ensure we had a back-up position in the event our negotiations with PALICO failed to guarantee a stable health insurance program during the 1994 plan year, Exhibit VI provides a comparison of the benefits, coverages, and costs (co- pays, deductibles, out-of-pocket maximums, etc.) of the Harris Methodist Plan, Aetna/Southwest Plan, and the proposed PALICO plan, This display shows that Harris Methodist Plan offers employees more benefits at lower Co- payments, deductibles and out-of-pocket maximums. An evaluation has also been completed on the network of physicians, hospitals, and other medical providers, Exhibit VII provides the listing of loco providers for the Harris Methodist Plan, Aetna/Southwest Plan, and PALICO. PALICO has a significantly larger network of providers. However, the concorn for the City employees was that the PALICO renewal required the employee to initiate and be responsible to any referral to a specialty doctor. Thus, the Employee Insurance Committee felt It would create an additional burden on employees and providers to effectively arrange proper and t(mely care, while the Harris Methodist network 1s not as extensive, it is a sound, stable, and Denton established group, we have further communicated to Harris Methodist our desire to have additional local providers (Including Denton Regional Medical Canter) in the network (see Exhibit VIII), while they have Indicated they cannot accomplish this before January 1, 1994, they will review the providers in the first quarter of 1994 and consider additional providers (see Exhibit V11), The final recormendation for Harris Methodist Health Plan was based on: 1) improved plan design and coverage 2) lower combined plan cost to both employees and the City, and a guaranteed 3) positiverreferences o of t both exceed employees a and increase overall, the Harris Methodist Plan was rated more advantageous to the employees and the City, The Harris Methodist Plan offers a better plan design and coverages. Compared with the PALICO's proposed 1994 premium rates, the Harris Methodist Plans (Options I and 111) offer premium rates for family coverage that are substantially lower than PALICO's rates, our evaluation of City employee's selection of deperdent coverage shows that when health premium for family coverage 1s high, family enrollment tends to decline, The Harris Methodist Plan's family premium would encourage those d z October 26, 1993 City Council Report on Employee Health Insurance Page 4 employees who could not afford family coverage under the current one-option plan with PALICO to enroll in family coverage through the Harris Methodist HMO Only. While on the surface the Aetna proposed plan offers considerable savings to the City over that budgeted, It has several negative features: 1) Higher dependent (family) premiums so that employees who cover dependents would bear an additional cost or not cover dependents at all; no second or subsequent rate increase guarantees 2) Limited access to pharmacies (Eckerd's only) 3) Limited provider network and concerns about the stability of the current network 4) No in-Denton representative to assist employees, dependents, and providers with problems and questions S) No mental health coverage expect through network providers; no mental health providers listed for Denton QMMM. DEPARTMENTS OR GROUPS AFFECTED: The employee Health Insurance Program covers all regular full-time and part- time employees In all City departments. FISC L IMPACT: If the Harris Methodist Plan is implemented on January 1, 1994, the City's cost for employee health insurance coverage would be reduced substantially from the proposed PALICO plan of 1220.32 per employee per month to the Harris Methodist Plan of $192.60 per employee per month. The estimated difference for the City over whet was budgeted In 1993/94 1s 52011120 (and $121,663 in General Fund). Respec lly submitted: L oyd V. Harrell City Manager k Scope of Specifications & Instructions Q4n*raet etioulation Any carrier chosen by the City of Denton will be requA eldcover all eligible employees of the City that are currently covered regardless of whether they -are actively at work or not. Additionally, the carrier must provide coverage equal to the coverage supplied existing employees, to both former employees and deceased employees and including but not limited for Texas families Bills required 97 and 404 passed during the 1993 legislative session. The City is subject to the provisions of the Consolidated OMNIBUS Budget Reconciliation Act of 1986 (COBRA). Proposals must conform to this law. Kdministra RA The successful bidder will be required to perform all necessary plans administrative and a to v comply in order to functions include, but are not limited to, the issuing of booklets, Certificates of Insurance, I.D. cards and master policies as well as providing for claims auditing and processing, computer- generated experience reporting at least quarterly, enrollment materials# forms, of such services conversion must forms. be included costs in associated the with the rates and reflected within the retention illustration. The City also desires ptsfrom ee necessary be available to conduct large group meetings if deemed meter+a for id eeleotion The award well as the followingt will evaluate the bids onlranot tes b as based The city 1. claims processing capabilities 2. Contractual requirement (i.e., billing etc.) 3. Ability or willingness to make a timely, accurate and inexpensive transition with current carrier. 4. Ability to service contracts. 5. Bidder's financial stability. 6. Ability to provide claims data in the forms necessary to track the performance of the plan. 7. Full text of insurance policy and insurance agreement you are bidding. T4sfee gad LOCat3nns for Filing ouotatioas Quotations shall be considered irrevocable for ninety (90) days, deCity of Denton waive reserves any informalities accept in any or all quotations quotation. Note. Bidder should provide an explanation for all items giving a transition information as reports, anincluding other plan samples of claims information. AAA01836 4 4 ~~zz i P~►clCo i .f nSduu l' C. ~l8•SO ,2Cl 150 30. od 9/,x.84 a93.8~ ,~7o,R0 945 IO 3~0, 00 0?96•~,/o aCi 30 5~a67 ~/.a.8o /Fa•7~ a~~.ao 701. ~3 3~a•oo /oo.G¢ /'/~?.so aoF,a~ d8~.~/ r5/A,?,efo i69.~/ F/F. 3`l ~95~ ~5 ~1oP, io ~/o a~ ice m fudsc 1 L ' ,r _ U CIU I HttULA I IU14 WILL I t ~latt~s- 4 Bid No._ I ? ►1 141 L IL (~tjd At~~tiPp (t~ u,~,f~ L~(e1 ac . 1~Y.r, ~9 Bid Title 1 o 1M .Tn) ~r;;Yrreht. oaf- l'1 C't LCOJ C~ Opened ITEM UUAN. t-+ OfSCHIPTION/ O1 rtT 4cA f,m coir7 -C- ..Q- ntff ~r 6~+„ err+l 'R Yr. \ .1~ NA 0- - - NA 6P5. Ar --r e r 1ev.ulrr»o.- -Q- /J - -D- - WA a tn1 ~D. snrn i if e y UUJ 11AUVL.M I IVIV JI ILLI B1523 \ r 3 JAI alt-XL Pn.an.d I Ali ~aaY )VV, n L~ f ~~Y'U r l'`. •~{i~ ~1~- ~r Q~ « 00 c. Opened q.[zq1q3 r. rA 1~.}ti.e.Ges~ ITEM IOUAN. DESCRIPTION „'IeFn a3.a~ g.'11 rHt/,/ S.5o 0 1 0 0. 3 s 3~~. B 3'10. as 311.1 ~,9 3 937_54 ~o~ Ln, 1 «d CluIA a~9. a 3rq.87 .o t3 r e v AmrL 3-r1.a9 0.4A 0.96, -215.49 33.E od 3.~3. ~ - uCW !M fht /R lP.1 ,Ai 1fi , r /I~• n ~r- ~ 30 RF a.39 503 60b at 99.0 1.7r aa.as X159, Pie-hmiit d 766• 419-61 4c 0 A (23237 &99.43 v 1q, 0/ 47,,73 q4. gr 99.go qq.qk At ~ a ,w F A Te.r,~n a off. a 8 6,t-f 8 50 .tro !O v !o„ 43;.a0 W.7/ 7, D 84.54 ~k 7. 19 I' lop, r < + ria 1 40,4Y 67,1. /,P OQ /f 537, 5+! 90, 02 C 2aN / rAn,r k.HS 3 0 3 .UD 9,~ P 00u) L^ a e .Ir.rec .A4, ~i..•' / M. h10S / NIA z :i v Sib C{IIx111'AL LAW' Lawrence ROB] NSON Appellant r V. 4.s State of CALIFORNIA 370 U.S, 660, 8 L,Ed.2d 758, 82 S.Ct. I4I7 Decided June 25, M2, C Mr. Justice STEWART delivered the cotic Division of the Los Angeles opinion of the court. Police Department, the witness gave his opinion that "these marks and the A Califomia statute makes it a crimi. discoloration were the result of the nal offense for a person to "be injection of hypodermic needles into addicted to the use of narcotics." This the tissue into the vein that was not appeal draws into question the consti• sterile He stated that the scabs were tutionality of that provision of the state severaldays old at the time of his exam. law, as construed by the California ination• and that the appellant was nei- courtsinthepresent case, therunder the influence of narcotics nor The appellant was convicted after a suffering withdrawal symptoms at the jury trial in the Municipal Court of Los time he saw him. This witness also tes• Angeles. Theevidence against him was tifed that the appellant had admitted given by Iwo Los Angeles police using narcotics in the past. officers. Officer Brow n testified that he The appellant testified in his own had had occasion to examine the behalf, Denying the alleged con- appellani'sarmsoneeveningonastreet versations with the police officers and ti R in Los Angeles some four months denying that he had ever used narcotics before the trial. The officer testified or been addicted to their use, He that m that time he had observed "scar explained the marks on his arm as tissue and discoloration on the inside" resulting from an allergic condition ` of the appellant's right arm, and "what contracted during his military service. appeared to be numerous needle marks His testimony was corroborated by two and a scab which was approximatefy witnesses, three inches below the crook of the The trialjudgeinstructed thejurythat elbow" on the appellant's left arm, fie the statute made it a misdemeanor for a officer also tescfied that the appellant person "either to use narcotics, or to be under questioning had admitted to the addicted to the use of narcotics ► • ' occasional use of narcotics, That portion of the statute cferring to `'4+ 1 for Officer Lindquist testified that he the 'use' of narcotics is based upon the a had examined the appellant the follow- 'act' of using. That portion of the stab ing morning in the Central Jail in Los ute referring to 'addicted to the use' of Angeles. The officer stated that at the narcotics is baud upon a condition or time he had observed discolorations status. They are not identical. • 1 • To 7•` s}. 14 and scabs on the appellant's arms, and be addicted to the use of narcotics is • . r he identified photographs which had said to be a status or condition and not 'y 44 been taken of the appellant's arms an act. It is a continuing offense and shortly after his arrest the night More, differs from most other offenses in the n •+f Based upon more than ten years of fact that [it]ischronic father than acute; fQ experience as a member of the Nar- that it continues after it is complete and s, s I PART li; CASES RELATING TO CHAPTER 2 Rr)olns(XvST4rt of f . C~tarax\I~ 501 subjects the offender to arrest at any scription and use of dangerous and time such Wore a he reforms. The existence habit-forming drugs • • fiche right to of such a chronic condition may be exercise this power is so manifc3i in 417 ascertained from a single examination, the inncrest of.nbe, public.aeallh and if the characteristic reactions of that welfare, that it is unnecessary to ente condition befoundprsenr" upon a'discussion of Y beyond saying The judge further instructed r I the jury that it is too firmly established to be appellant could be comictrd successfully called in question." 256 the Los Angeles under the a genera! verdict if the jut the witness gaffe U S. agreed tither sal > at 45, 41ion S.C,r at 426, be marks and the US" the was of the "site- Suc s" or had committed the 'act" h regulat it can be assumed, the result of the denounced by the statue. "All that the Stale might impose rininaldsanctions. :rmic needles into People must show is either that the for example, against the unauthorized vein that was not defendant did use a narcotic in Los hat the scabs were Angeles County, or that while in the h•: se, orrposssessionlof narcoticrs I e time of his exam- City of Los Angeles he was addicted to within its borders. In the interest of appellant was nei- the use of narcotics • • • , tceof narcotics nor Under these instructions the jury atws or in1 thetilnerestlof the general symptoms at the returned a verdicl finding the appellant health or welfare of its inhabitants. iswitness also its. "guilty of the offense charged." An a State might establish a program Ian[ had admitted appeal was taken to the Appellate of compulsory treatment for those past. Department of the Los Angeles County addicted to ar. Such a tified in his own Superior Court, "the highest court ofa of treatment mightcreq ire periods of he alleged con. Slate in which adecision could be had" involuntary confinement, And penal lolice officers and in this case. Although expressing some saht verused narcotics doubt as to the constitutionality of "the oncomplylwithees ablisshedfcom- ;o their use. He crime of being a narcotic addict," the pulsory treatment procedures, Or a s on his arm as reviewing court in an unreported o pin. dlergic condition ion affirmed the judgments of convic- ofanarmo8icsctraffic on broaderefronts c military service. tion, citing two of its own previous also-through public health eduea. -rroborated by two unreported decisions w hick had upheld tion. the constitutionality of the statute. We lioraler themeconomicf and tsocial -uctedthejury that noted probable jurisdictiun or this conditions under which those evils misdemeanor for a appeal, 368 U.S. 918, 82 S.Ci. 244. 7 narcotics, or to be L Ed 2d 133, because itsquarely (Iran be thought to flourish. which sahortState of narcotics • a • ents the issue whether the stautereas mightnmake in this area is undoubtedly statute referring to construed by the California courts in a wide one, and the wisdom of any s is based upon the this rase is repugnant to the Fourteenth portion of the slat- Amendment of the Constitution. p~rcum choice within the allowable cted to the use' of The broad power of a State to regu- that cpremise wefturnso thecCali o>ba ton a condition or late the narcotic drugs traffic within its law in issue here. identical. • • • To borders is not here in issue. More than ise of narcotics is 40 years ago, in Whipplr v. Martinson, statIt uld ute under whi shbtheS appellante%at condition and not this Court explicitly recognized the convicted as one which is operative nuing offense and validity of that power: "There can be onl tier offenses in the no question of the authority of the state narc ticsnwithin helSlate's ju sdic- rather than acute; in the exercise of its police power to tion, But the California courts have not it is comptete and regulate the administration, sale. Pre- so construed this law. Although there 1/ . 502 ~,~"rC3 rgrr++. _t '3 CKistititr Lsw was evidence in the present case that It a unt+kety that any Stale at lh, ~ the appellant had used narcotics in Los moment in history would attempt to Angeles, the jury was instructed that make it a criminal offense for a person they could convict him even if they to be mentally ill.gr.a.lem.,ot to be disbelieved that evidence. The afflicted with a venereal disease. A appellant could be convicted, they State might deierrmne that the general were told, if they found simply that the health and welfare require that the vic• appellant's "status" or "chronic con- tims of these ant other human afflic• dition" was that of being "addicted to tions be dealt with by compulsory the use of narcotics." And it is impos• treatment, insohing quaranrine, con- sible to know from the jury's verdict finement. or sequestration. But, in the that the defendant was not convicted light of contemporary human knowl- upon precisely such a finding. edge, a taw which made a criminal The instructions of the trial court, offense of such a disease would doubt. implicitly approved on appeal, less be universally thought to he an amounted to "a ruling on a question of infliction Of MCI and unusual punish- state law that is as binding on us as ment in violation of the Eighth and though the precise words had been Fourteenth Amendments. written" into the statute. Terminiello We cannot but consider the statute v. Chicago 337 U.S. 1. S, 69 S.O. 894, A95 before us as of the same categ++q. In . 93 L Ed. 1131. "We can this Court counsel for the State rvcog- only take the statute as the state courts nixed that narcotic addiction is an it. read it." /d., at 6. 69 S.Ct. at 896. ness. Indeed, it is apparently an MM.5 Indeed, in their brief in this Court which may be contracted innocently or counsel for the State have empha,ized involuntarily. We hold that a state law • that it is "the proof of addiction by which imprisons a person thus afflicted i circumstantial evidence e : • • by the as a criminal, even though he has never f ' . s tell-tale track of needl marks and touched any narcotic drug within the scabs over the veins of his arms, that State or been guilty of any irregular " remains the gist of the section." behavior there. Inflicts a cruel and This statute, therefore, is not one unusual punishment in violation of the which punishes a person for the use of Fourteenth Amendment. To be sure, narcotics, for their purchase, sale or imprisonment for 90 days is not, in the possession, or for antisocial or disor- abstract, a punishment which is either deny behavior resulting from their cruel or unusual. Butthequestion can- administration. It is no! a law which not be considered in the abstract. Even even purports to provide or require one day in prison would be a cruel and `uXy 4 r medical treatment, Rather, we deal unusual punishment for the "crime" of with astatute which makes the "status" having acommon cold, of narcotic addiction a criminal We are not unmindful that the vicious offense, for which the offender may be evils of the narcotics traffic have occa• s R prosecuted "at any time before he sioned the grave concern of gmerrunem reforms .'Cali forniahassaid that aper- There are, as wt have said, countless son can be continuously guilty of this fronts on which those esirs may he legit- offense, whetherornothehasever used imate ly attacked .We &a] in thi s cast only or possessed any narcotics within the with an individual provision of a par- State. and whether or not he has been ticularized local law as it has so far been guilty of any antisocial behavior there, interpreted by the California coups. ■ f Scope of Specifications & Instructions Request for detailed specifications, loss experiences, and questions should be directed to Ike obi, City of Denton at (817) 566-8340. All quotations must be submitted with two copies (in a sealed envelope, clearly marked "Insurance Quotations for the City of Denton, Texas") on or before September 24, 1993, at 2:00 p.m. to: Hr. Tom Shaw Purchasing Department Service Center 901 8 Texas Street Denton, Texas 76201 AAA01636 -5- I e•esed ULVtIUYMtNIS n Bilas Barred In Company I It" h Pi s U All diseases, including AIDS, must be treated alike under EEOC's new ruleg impart on some people, Also allowed are clauses that exclude from coverage pre-exirtul health conditions, limits on payy. merits for b166d Uihifu'siona Of pat rays, and exclusiori# 9~.elective air- gory or experiminta) drugs. The rules place the burden of proof on the employer and permit specific defenses, including: ►Proof that the company Is not engaged is the disability-based die paste treatment alleged ► Proof that the dispa-ate treat, ment Is justified by legitimate actu• axial data. ► Proof that coverage of certain ailments must be limited to prevent the health Insurance plan from be- coming financially insolvent and that The Equal Employment Opportu• review the matter. there is no nondiscriminatory way to pity Commission has Issued a Harlow views the guidelines es avoid insolvency. series of rules requiring companies significant. She believes they send a ►Fyoorthet coverage of certain to treat all diseases and ailments signal that claims of discrimination ailments would cause a 'drastic" alike under employee health irsur- will be taken seriously. She cau• increase in premium payments, co- once plane. Barred under the new tioned, though, that it remains to be payments or deductibles or cause a guidelines are hiring and firingbased seen how the rules will be eriforved. drastic drop in the level of benefits. on a person's potential impact on And, in the end it will be up to the 'rho changes must make the plan such plane. courts to decide bow the ADA will be unavailable or unattractive to a ri The rules appply virtually to all interpreted, she said. nifimtnumber ofworkers whowoufd employee health pleas, whether pro. 'this Is not final,'she added. 'A drop or be excluded from coverage. vided by commercial insurers or corn- lot of companies are facing difficult 1 Proof thct the treatment does parry-administered, and are a major questions about health can costs not provide any benefit. interpretationofthe IMAmericim and they often seek the easiest way Whether the new regulations with Disabilities Art, out, even If discriminatory. We will will prompt businesses to restrict or In its first application of the need some court decisions to ensure expand coverage is open to debate. rulesIssued June 8,theEEOCfiled a thatemployers don'teap coverage for Harlow thought many companies lawsuit In federal district court in AIDS or other illnesses that see would shy away from dramatic steps New York claiming a health plan run egionAve.' that could harm them in the employ. by a union violated the ADA by Mont market, rich as capping all excluding coverage for treatment of Th•ADA'sRoach hmIthaiseWalmentsatslowlevel, conditions related to AIDS. The rules are based on the ADA, Yet, she noted that companies no effect of the new rules is which ban employment discrimina• are grappling with higher health difficult to determine. While there tion on the basis of disability. Ac- Insurance premiums and trying to have been cases ofcompanies exclud• cording to the rules, the act prohibits find ways to cut costs. Ing coverage for AIDS and limiting health Insurance discrimination Kristin Pass managerofhuman coverage for some diseases end ail- whether it is direct, so when a resources policy for the U.S, Chem. men`s, b'.siness experts say they are companyderJes it benefit to a person ber of Commerce, said that `very not cmmmon. Also, the rules issued with cancer, or Indirect, as when a few" businesses currently restrict or by the EEOC control employers but company health plan bars coverage place caps on coverage for certain not insurance underwriters, whom for certain legitimate treatments. diseases. But she refused to predict critics blame for setting the standard The rules state that insurance whether companies would cut or on poL-:y exclusions. provisions which single out a partic• expand coverage in the future, not. The ACLU's National AIDS utar group, such as people sufrering Ing only that "benefits are not ex. Project does not have figures on how from cancer, AIDS, kidney disease or panding at this time." much Insurar,e discrimination ex- deafness, are not allowed. Bees did caution, however, that lots, said its associate director, Ruth Caps on payments are permit. the rules could place burdens on Harlow. However, she sold that it is ted but they must be "applied equally small bnelnesses. If you ppurchase s a "eerioue problem" that has been to all Insured employees {and) not plan and rely on the tnaurer to growing since lower courts upheld a discriminate on the basis of disabil- coincide with the ADA and they decision by a Houston company to ity." It is acceptable to provide fewer don't, you're liable," she said. "You ylsce a 55,000 cap on AIDS benefits, benefits for a broad category of ail. makewidgets, you have notime tube The case was appealed to the U.S. ments, such as eye care, even though insurance experts." Supreme Court, which declined to those restrictions may have a greater -yfenry J. Reshe 28 A8A )OURNM / SEPTEMBER 1 993 wa+urw it W RVVIC" i October 2E, 1993 City Council Report on Employee Health Insurance Page Prepared by: .V9 Thomas W. Klinck, Oirector of Human Resources Approved: Betty McKean, Exe utive Oirector municipal Servic and Economic Development .eroe!lf.er 1r~0~r~0: f0/7f/!~ - ny S CITY OF DEWON REQUEST FOR BID BID NO. 1523 Health Insurance Program Due: Sep ember 24, 1993 prepartdi 06/28/93 i e CITY OF DENTON Request for Bid for Group Medical TABLE OF CONTENTS P6~ Background and General Information . . . . . . . . . 1 Scope of specifications and Instructions 2 Plan Assumptions (Exhibit I) . . . . . . . . . . 6 Bid Submission Form (Exhibit II) , . . . . . . , 8 Current Schedule of Benefits (Exhibit III) . . . . . . , . 12 Plan Experience (Exhibit IV) . . . . . . . . . . . . . . . . 16 Carrier/Underwriter Profile (Exhibit V) . . . . , , . . . . . 21 Census Data (Exhibit VI) 22 AAA01836 BACKGROUND AND GENERAL INFORMATION 11-1i O~6 The City of Denton is a city of 680000 population and was incorporated in 1866. Denton is located approximately 40 miles north of Dallas and Fort Worth. It sits at the apex of a triangle that encompasses the Dallas-Fort Worth metropolitan area. Although it benefits from the forward thrust and continuous expansion of the largest Consolidated Metropolitan Statistical Area in the state, Dentor. and its economy stand proudly independent. The City of Denton has a work force of approximately 850 employees. The City has had an effective safety and risk management program since 1470. The services the city provide consist of law enforcement, fire safety, paramedics/rescue, refuse collection, sanitary landfill, electric, water, sanitary sewer, storm sewer, animal control, parks/recreation, library and airport. In general, we are a full-service city; however, there is no city hospital or rest home. Two major universities University of North Texas and Texas Woman's University along with a fully accredited public school system, allow local citizens every educational advantage possible and a rich blond of cultures. The eastern and western branches of Interstate Highway 35 meet in Denton, making it conveniently accessible to everything in Dallas and Fort Worth. Denton offers worlds of opportunities to the prospective developer, business person or industrialist. Texas Instruments has a plant here and other industries are expanding. Any questions regarding the city's current health plan or this bid should be directed to Ike Obi at (817) 566-8340. Questions concerning the bid submittal should be directed to Tom Shaw at (817) 383-7100. AAA01836 -1- t 3 3 z a. SCOPE OF SPECIFICATIONS & INSTRUCTIONS /i- /4 The City will entertain proposals on fully insured man qed scare/ plan basis. The specifications contained herein will encompass Network Only and Non-Network Plans, since we are presently evaluating options to reduce our cost, we are seeking optional quotes on plans designed to achieve this. We, in essence, urge innovative approaches to health care coverage. The City of Denton is seeking an insurance policy/agreement to become effective January 11 1994, for a minimum of one (1) year. The policy shall provide, If not cancelled prior to December 31, 1994 in accordance with the terms of the policy/agreement, bid submission form, and/or request for bidders, for the renewal of this policy for two (2) successive twelve (12) month periods, thereafter subject to the renegotiation of the terms of this policy, it City Manager and insurance company agree, without the necessity of rebidding this insurance proposal as long as the cost of insurance during either the first or second twelve (12) month successive period does not increase more than 301 and the plan design benefits do not decrease more than 301. However, this proposal may be terminated if insurance company and city are unable to agree In writing to a mutually agreeable plan design and insurance cost no later than seventy-five (75) days prior to the end of the preceding period. The City is interested in a fully insured managed care proposal. The Instructions contained herein apply to all sections; otherwise, each section can stand alone, or be a part of a partial or total package. Although the City is interested in packaging these coverages, for a number of reasons, it is understood that all coverages contained within these specifications cannot necessarily be Incorporated into a single policy, either because of Texas law, or because some of the coverages do not lend themselves to that procedure. The City is ,allowing for the possibility that some agencies or underwriters would prefer not, or be unable, to quote all coverages in these specifications and will not place packaging over another alternative which is clearly beneficial to the City and the taxpayers. The City will also accept and encourage innovative and alternative methods of pricing and coverage of risks so long as they do not violate Texas law; however, exceptions must be noted and made in addition to the specifications, which should be adhered to for the purpose of proper comparison, and all such variations must be clearly detailed, Including advantages claimed to be gained thereby. Please review the entire scope of specifications, instructions, and the specification package carefully before submitting quotations. AAA01936 I I Scope of Specifications i Instructions ~J Conflicts Hetwean Ra +~et for Did and Bid z /G . l Should a conflict arise between the terms and provisign of this request for bid and the bid of the insurance company (which includes insurance policies, insurance agreement, etc.) the terms and provisions of this request for bid will prevail. Incontestability Provisions Are Inaflplioable City and Bidders agree that if a conflict arises relating to an interpretation or meaning of the terms and provisions of city's request for bid and the bid of the insurance company (which includes insurance policy and insurance agreement, etc.) such conflict will not be resolved through arbitration or be waived by the parties, but will be resolved by judicial review in the courts in Denton County, Texas. PUty.of Carrier In order for bids to be compared on an identical basis, it is necessary that all portions of the document, including requests for specific information about coverage, ratings, services, forms and general information regarding the carrier, be completed and adhered to. Carriers participating in this process must guarantee that these specifications will be used in their presentations to their underwriters without modification. For purposes of comparison, it is important that quotations be submitted on this bid form (sea Exhibit II). Any amendments or inn)vations must be submitted by addendum to this specific package and so noted, sample insurance policies and insurance agreements, including endorsements, must be submitted with all quotations. Commitments in writing from underwriters and re-insurers are also required as a part of the quotations. Any carrier which is unable or unwilling to meet the specifications shall so state (with a full explanation) and detail the coverages affected, whethor or not adversely, in a supplementary letter tb be attached to the submitted quotation, specifically noted and made a part thereof. underwriters' Oualifications All carriers must be licensed to do business in the Stato of Texas and maintain a BEST's Insurance Guide rating of at least A (excellent), Exhibit V must also be completed. Caveat Although every effort has been made to provide accurate and up-to-date information, companies supplying quotations should contact the C!.ty for any questions that you might have. AAA01836 -3- ~ ~CITY~ -CQUNCI Lt* ~~aG a m a O ti i Na - O ApanCal DATE= November 16, 1993 0 l~ CITY COUNCIL REPOT TOt Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manage- SUBJECTt Historic Landmark Designation for the Campus Theater RECOMMENDATION: At their September 13, 1993 meeting, the Historic Landmark commission voted unanimously (7-0) to recommend approval. At their October 13, 1993 meeting, the Planning and Zoning commission voted unanimously (5-0) to recommend approval. SUMMARY: The Greater Denton Arts Council is seeking Historic Landmark designation for the Campus Theater, located at 200 W. Hickory. GDAC purchased the property in 1990 with plans to renovate it as a live performance facility. BACKGROUNDS The Campus Theater, built in 1949, operated as an active movie theater until 1985. At the time of its construction it was the biggest, grandest and most technologically advanced theater of its kind. Virtually unchanged since its construction, the Campus exhibits classic modern architectural characteristics with grandiose ornamentation. Many Dentonites have fond memories of the Campus. Hollywood came to downtown Denton in the late sixties when the Campus was selected to host the premier of the movie "Bonnie and Clyde", filmed in the north Texas area, With Warren Beatty in attendance, the Campus was assured of its place in history. t PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED: Historic Landmark Commission FISCAL IMPACT: None Respec ul)ly sued: ,v W epared by _ ~(J. _ Llo d V. Harrell City Manager a Bilea, nager M i Street Program App ovedd: rank H, Robbi AICP Executive Dire for Planning and Development I ~I r, 1 a HISTORIC fANDFIW ZGNING PE(h1(OtJ` 7" FINAL APPLICATION CITY OF DNTON, TEXAS ~r SITE .1DLRESS: 200 west N:ckory, Centan LEGAL. DtSCRIPTION (LOT AND BLOCK OR METES AND 8WnS - ATTACH EXHIBIT "A" IF NECESSARY): r A0971A WM. NEILL, TRACT 81A, ALSO INCLUDES OT DENTON. BLK 13(PT), ACRES 0.2865, OLD DCAO TR#90 A0971A WM, NEILL 81A, ALS000002865 kee Exhibit A for more detail) PRESDNZ USE: Theatrical Stora;;Lehearsal p ZONING: Central Business District (Also complete Exh`>.'s? . ` ~~Y'y,' NAME OF TELEPHONE OWNER (S) ADDRESS NI MSBER. Greater Denton Arts Council 207 South Bell Avenue 817-382-2787 2151kl2 Page 2 3 . _3 S dy CONSTRUCTION/DESCRIPTION= (Also complete EKniblt 1) DATE BUILT: 1949 't 2) ARCHITECTURAL STYLE OR PERIOD: Art Oeco DISTINCTIVE ARCHITECTURAL FEATURES (DESIGN, DETAIL, MATERIALS OR CRAFTS- MANSHIP): MArouee 4) ARCHITECT: pattlgrew.Wnrlny rnmpAny SI?alliyc) 5) BUILDER: 6) EXTERIOR MATERIAL: Masonry 7) AOUFING: Built-up 6) DOORS: Aluminum and Glass 9) WINDOWS1 10) PORCHES: 11) OUTBUILDINGS: 12) LANDSCAPING AN0 FENCING: NATIONAL REGISTER? NATIONAL. LANDMARK? RECORDED 'OUTS LANDMARK? LOCAL SURVEYS OR RE " , ITION? 215104 a ; 7I4,. RFS011RCFS GUARANTY COMPANY 11 004105 IEGAL DESCRIPTION . CAMPUS THEATRE All that rennin ttAet or pArrel Of Innd lying And bring Attunted in the City mild Ootutty of Drntrn, State of TrVAA, and hying out of the WII1IAm Nrtll Surve,v, Abatrnrt No. 911, And bring more pnrtlculArly descrlbed as follows, hrglnnt++g At the Inteesretlnn of the North boundnry Linn of Hickory Street with the West bnundnty llnm of Cednr Strect, sAtd bealnntng corner being the Southeast corner of block No. 13, of the original Town of Denton and being the Southeast cotnrr of Lot No, 3 of said block No, 13; Thence West with the North boundnry Itne of Hickory Street, pnsaing at 42,0 feet the Southvast corner of Anid Block No. 13, and continuing a total distance of 70,3 feet to a corner; Thence North with the EAet face of A 13 Inch brick wall, said wall being the EASt wAll of A brick building now occupied by the Lone Star Cas Company, 160.0 feet to A corner; Thence EAst, rASSing At 36.0 feet the West boundary ltne of sold block No, 13 of the Origin,nl Trwo of Denton, contlrniing A total distnnce of 78,0 feet to a rorner In the Vent boundnry line of CtdAT Street and the EAet boundary line of ?lock 13; once Snuth vilh the Enst boundary line of Alock 17 And the West boundary tine of Cednr Street, 160,0 feet to the plnce of beginning. NOTE: The rompnnv is prohibited from insuring the area or quAntlty of the lAnd described herein. Any statement In the Above legAl description of the nreA or qunntity of lAnd is not a representation that such Area or quAntity is correct, but to mnde only for InfOtmAtI011A1 And/or identification purposes And dyes net ovetticle Item 2 of Schedule b hereof. -~~oo-0 d1o0 -.31190✓ Tons Cons. Theatres, Cosyus Box 773 ~ Denton, Tesas Taller B. YcCluekan, Est. 14/326 200 W. Hiekory Jf~ 79x160 Cor. Ceder 3 W. rlickory m V- ~C„~t. Wm- Neill Survey Abet. #971 dd 1 j SERVICE AND/(,kD "PIOV£ ENTr1S I Dirt Street Bricl Mpbdt V Side Walk ✓ \\'ner G_n p Gravel Street hfendam Contrtle CurbendGutur Flar,r4min rry~,' ZONING /~pQ x D..etlinx A A Apartment C D F Commerti,I C DE F Fro NI(F, B C 1) F. and DIIX B C E- LAND VALUATION 0 SIZE LOT UNIT lilt Al VAtI t to 4 , 1 -%3 Too rt+-rr7'g~ T3 BUILDING SN.1. tCH ¢r'tul~t 4.4.t--,.A RE SIbE NCI _ ; + T f ~~.E 1 I f + 1. esSl wENt 41001 trv[ IN*If R,oN 1, ~t,•„ I , 1 f 141to .'01' ~.a6 1 1_ _ _ I L} L. -I .41f .u nOC. 1 . 14J4 .1 r,4 t ra.f ♦ Ir l r. ~.rW [ I 641 1..i_. N 0,61 BVlt ,h5 l c t t4a.1 I4 ro, }7I It ~ 1. f1q.41o . y 1[1001/ 1 IPOOPI IHlt1 uwnw 14,e.r. ~u104ry 001HP1 n 41 ~ WY1a11 rat I I 3 lir. CS WALLS Ill+t ~aDb4 ttA4WIS 11. 1 Palo.., Tyt .a Co., ro.♦ I 61.1 ± I I f ` _ r ttrl I, Cann Pw VB.NG ~.r../ r..1 ' L. I.l_ - ~ i. _ I ~ eur 1 11 col rp6m 11 I.Owt114•.1 ~awr11 , I1- 1_._!. F-{~ IIto, 1011 rawlHnll ~c0owoolLJ. ~rrhD ~CaN,a, Pvf.lo [1011 fi..1 r or.[wPr.a aq . I L j 1I 1 4 ~ I wra rat orl. ro. c.i, j vucco FLOORS ~W.44 lccln, - { I` 1.1 H4r1 FMaI 11I ArINr, ,w yt1 10411 •141.10.12 two 1,4046 1041[1 1u[uN w ".l. sae, chl..,lru CONS TBVC T'Ch too, $I.i. .r,. r.[0111141 410211,1441 1 1 11ort .Howe., 11004 Prw.1c11 f v .0.NI IbC1 TAN 411 .14114 i.t r' 10, 1t Oq C4TION wr hll , ,H lrou 1 oe6 - , - ~ of 1,4,44 on t r u Pat 711G11~ 4,t_ II_ r 11 Ell /ur.!`~!!~ Z 4 ='rrryJ~~7:~b~~tt,~, 1'e• ✓C ! I 1 1 1 .74 691 A 4C 40 tj x w rl Y 4 0 f l, If 't SO w 11d t /1 d r ~ 1 rd_t_s.17St Id ?S Xyx s2 _ r I r _ ry Jy S '~f~vi -A o:T" n MaTroN__ Q - INAL 4LA91._.10last- _._-lies _1o11.t lgrq _ wl!_JBl_~ftOCL_.f90J__~J_!L_ SLAY ORS. 2duLL...-___IIU 0NA1 WA R R.L. _ \\C J 0 OYl1! 7~f00 _ to,w,w 14 L1~~ [-SOY ls if' /J11 Ll1i~~.T117i~ ~ t rlar.a.tHOr~ tJ}y It IA'.4 r,yY EXHIBIT "C+ CONSTRUCTION Instructions; List chronologically and with as much detail as possiole, dates the structure was built, builder, cost of improvements, and detailed descriptions of improvements. Include any significant remodeling with particular attention to exterior changes. Attach copies of all building permits, mechanic's liens and deeds of trust. CONTRACTOR'S OETAILEO DESCRIPTION TYPE Of DATE NAME LEGAL & NATURE Of WORK COST INSTRUM:NT+ 1941_ Yes.: 1a.~r} 1949 Theatre ripened 1954 Screen Widered for cinemascope Late 1950's _ Concession area rebuilt after fire 1973 Brick on west side treated to retard deterioration 1992 Roof repairs i 2191k/d R EXHIBIT "0" SURVEYS Instructions: as 1) attach subdivision map or Old Town Plat; 2) attach copy of old surveys you have and the on-the-ground survey 'when you purchased the property, or a current a1-the-ground survey locating all improvements, easements, access to public roads, public improvements, encroachments and protrusions, 2191k/T 9 Y. 4 ~r K FV7 el „i' - a t II .o ~ t t 7a t I s : 425_ ~ i a 14 5 It 1, --1_- 37 I r 7 r _ r 15 , eat I- re_. r r- i 403 I 1 S 1 S ~I r{ I u- I t a 4 i Is t .i I 2 71 14 13 r I 1 I It 10 I n a u' I ~ I• 181Ir'~..''~ ! II, 1061 -I- i_ + •n i2B ~1 t J N I 426 402 , as , I 10 , JJI e ~ 14 I II _r• eenaY I 11612 ' _I I 1/ I Ii r i a t t > t a 27 i~ it t t 1~1 S + 12 p I n 401 71ti t II _ iaro' I y u I 1. q 23 301 it t r to,.r, roams ! T 1 1 11 M J I rol - f! !I !0 b I 10 e J iL ! 13 .r l 4 I! I- ~ ~ ~ I IlIt(3 SI A Il1111i It i I 302 ! ` I I 1 t i j~{ ! M 325 Y• M It I 11 _!l al 0. A[ r: ol 11 IT, - NJ fe !1 !s !f 11 to It ~ 303 +~Oa~ I f ~ 23 E to Y 11 1 M ! 1 f • 7 I f' 1 y 4 I' 111 = 1 I 03 I 304 • 1 222 j sa u a 14 n r V32 11 14 n 1 1 n"'~_~Y~'t`"'~,` i!r .i,-•.v r•~`~Ti T~ 1''1- T'i=~ F_. ._........_-~_.a.~._._ h~ r.~--I~ E~+IStr ~fE~ 93 -0~3 ExTERIOR Pr+prOGRAPHS AWE" A 11 7i'V` Il f r r, r• 1 { f _ L__. tea. ~~{-,►so ~ ~~~i of 71 R f , INM s ~ L LL • ~ , ~f'i N I i EXHIBIT "F" zs '4W Criteria to be used in Historical Landmark Odslona lon~G - 9 The petitioner will oe responsible for furnishing data to the Planning and Development Department for suomittal to the Landmark Commission substantiating that the property meets at least one or more of the following 13 criterion for Historic Landmark designation: XX 1. Character, interest or value as part of the development, heritage or cultural characteristics of the City of Denton, State of Texas, or the United States. 2. Recognition as a recorded Texas historic landmark, a national landmark, or entered into the National Register of Historic Places. k x 3. Embodiment of distinguishing characteristics of an architectural type or specimen. o. Identification as the work of an architect or master builder whose individual work has influenced the development of the city. 5. Embodiment of elements of architectural design, detail, materials or craftsmanship which represent a significant architectural innovation, VV 6. Relationship to other distinctive buildings, sites or areas which are eligible for preservation eccording to a plan based on architectural, historic or cultural motif, 7. Portrayal of the envirorment of a group of people in an area of history characte.ized by a distinctive architectural style. 8. Archaeological value in that it has prcduced or can be expected to produce data affecting theories of historic or prehistoric interest. 9. Exemplification of the cultural, economic,, social, ethnic or historical heritage of the City, State or United States. xx 10. Location as the site of a significant historic event, 11. Identification with a person or persons who significantly contributed to the culture and development of the City, State or United States. XX 12. A ouilding or structure that because of its location has become of value to a neighborhood, comx,nity area, or the city, XX 13. Value as an aspect of community sentiment or public pride. 215WI0 i EXHIBIT "G" AgendallBmA' me PL&L_f4l. I/we, the undersigned, owner(s) of, or party(s) witn financial interest3 .t a6 all property herein described, do nereby file this, my/our petition, asking that the said property be designated as a historic landmark under the provisions of Ordinance M-30 of the Code of Ordinances of the City of Denton, Texas. I/We herewith tender the filing fee of sixty-five dollars (S65,p0). I/We authorize the City of Oenton to place a sign or signs on the above property for public notification of the proposed historic designation, Name Greater Denton Arts Council by Herbert No11 Address ZO7 South Bell Avenue _ City Denton State TX Phone 817 382-2787 Submitted this __ZSh day of 5eptember_ 1993 2151k/11 i a Historic Landmark Commission Minutes of September 13, 1993 D Page 3 of 4 Nis. Biles stated that staff recommends approval. Mr. Lowry stated that in considering the criteria for designation, he felt that criteria #1, 3, 6, 12, and 13 qualified the property for historic designation. 'Ile Commission agreed. Mr. Lowry moved to approve the preliminary application for 1004 W. Oak Street. It was seconded by Mr. Smart and carried (6.0). Ms. McCain abstained. V. Consider an application for Certificate of Appropriateness to demolish and reconstruct an addition to 305 Mounts Street. Ms. Abbott opened the public hearing. Ms. Biles reported that Brian and Vickie Morrison have made application to demolish and rebuild an existing addition to their home at 305 Mounts. The addition is not original and is in poor repair despite numerous attempts to repair leaks and other maintenance problems, The proposed design for the replacement is sensitive to the style and period of the structure and will, in fact, be a marked visual improvement to the existing addition. Mr. Morrison reported that he felt the addition had been added onto so many times that it may explain why it leaks so bad. Nis. Abbott asked the petitioner if the building would have the same footprint. Mr. Morrison stated yes. Nis. Abbott closed the public hearing. Ms. Biles reported that staff recommends approval. Ms. Byron moved to approve the Certificate of Appropriateness for 305 Mounts Street. It was seconded by Nis. Holcomb and unanimously approved (7-0). t Vl. Consider the final applicatic-in for landmark designation at 200 W. hickory, also known as the Campus 't'heater. Nis. Abbott opened the public hearing. Nis. Biles stated that there was not a written report on the item because she was on vacation. She reported that she has worked with the Greater Denton Arts Council on the designation and has also met with the Executive Committee, advising them of the processes and the ordinance, Historic Landmark Commission Minutes of September 13, 1993 Page 4 of 4 Nis. Biles introduced Herbert Iloll, Executive Director and Fred tterson, Chairman for the Greater Denton Arts Council. Nit. Holl slated that he will answer any questions the Commission may have. Nis. Abbott closed the public hearing. Mr. Lowry felt that criteria #3, 6, and 10 should be added for designation purposes. Nor. Lowry moved to approve the final application of 200 W. Hickory. It was l seconded by Mr. Smart and unanimously carried (7-0). f Preservation OfScers Keport. Vil. • Staff approved Certificate of Appropriateness for 305 Mounts Street. • Wceive a report regarding City Council woAsession discussing O'Neil Ford District Designation. • County Seat Saturday Tours. Ms. Biles reported that a copy of the staff approved Certificate of Appropriateness for 305 Mounts Street has been added to the packet for the Commission. Ms. Abbott stated that she would like to set up a subcommittee to create guidelines for the proposed O'Neil Ford District. She felt the City Council may be more positive if they are able to see exact guidelines that would be required of the district. Ms. Sites stated that County Seat Saturday, scheduled for October 2, 1993, will include a trolley for morning tours. Mike Cochran was able to arrange for the trolley. Ms. Abbott left the meeting. Vill. Future Agenda Items. Ms. Biles stated the following items will be on future agendas- 1) O'Neil Ford District 2) devised Preservation Plan 3) Discussion of seminar for people doing research on "H" property designations. It was moved by Ms. McCaln, seconded by Ms. Holcomb and unanimously carried (6.0) to adjourn the meeting at 6:40 p.m. rj y Planning and zoning Commission Minutes October 13, 1993 f% The regular meeting of the Planning and zoning Commission of the City of Denton was held Wednesday, October 13, 19930 in the Council Chambers of City Hall, 215 E. McKinney Street. PRESENT FROM P & Z: Chairman Engelbrecht, Mike Cochran, Katie Flemming, Barbara Russell, Dick Norton. ABSENT FROM P 6 Z: Dr. Mary Evelyn Huey and Richard Cooper. PRESENT FROM STAFF: Frank Robbins, Executive Director of Planning and Developmenti Owen Yost, Urban Plannert Jane Biles, Main street Coordinatorl Mike Bucek, Assistant City Attorneyt Gerald Cosgrove, Engineering Administrator for Water/Wastewater; Cindy Cranford, Secretary. Chairman Engelbrecht called the meeting to order at 5:10 p.m. I. Consider approval of the minutes of the regular meeting of September 22, 1993. Mr. Norton moved to approve the minutes as written. Ms. Flemming seconded, and the motion carried unanimously (5-0). II, Hold a public hearing and consider an historic landmark designation for the Campus Theater located at 200 W. Hickory. Public hearing was opened. STAFF REPORT: given by Jane Biles, Ms. Biles reported that the Greater Denton Arts Council vas seeking Historic landmark designation for the Campus Theater. They purchased the property in 1990 with plans to renovate it for a live performance facility. The theater was built in 1949 and operated as an active movie theater until 1985. At that time it was considered the biggest, grandest, and most technologically advanced theater of its kind. The building has been virtually unchanged since its construction. The Campus exhibits classic modern architectural characteristics with grandiose ornamentation. The design is typical for theaters built during that time. Ms. Biles also said there was a possible addition planned for a scene shop and storage area, to bo built at a later date. b i Planning and Zoning A"- Minutes' - - `fA October 13, 1993 //-/G' 93 Page 2 / 7A/o?Q G In favor: Herb Holl, Executive Director of The Greater Denton Arts Council. Mr. Holl said he was present to show his support for the project. He explained that the outside would remain as original as possible. The further inside the building the newer it would look. The facility will go from a capacity of 1200 to a 300 seat facility. Ms. Russell asked how the parking would be addressed. Mr. Holl said Bank one has agreed to make their parking lot available since it would be used after the bank closed. The parking around the square would only be a short walk from the theater. Ronnie Beasley of the Arts Council said she was in favor of the project and wanted to be present to show her support. In opposition: none The public hearing was closed. RECOMMENDATION: At the September 13, 1993 meeting, the Historic Landmark Commission voted unanimously (8-0) to recommend approval, Mr. Cochran made the motion to approve H-93-002. Ms. Russell seconded and the motion carried unanimously (5-0), III. Work Session A citizen report from the Vice President of DISD, Guy Jones. Mr, Jones spoke about the overcrowding in the area schools and the lack of funding. He spoke about the tax base and the need to encourage commercial development. He explained that the residential development did not generate enough taxes to make lip the difference in the cost of increased student population. The Commissioners encouraged him to take his information to other boards and a town meeting. They felt that the general public did not realize how bad things were getting with the overcrowding and lack of funds. IV.& V, Directors report t) S r Ji\wpdocs\ord\hietoric.o _5!A.. . ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DESIGNATING THE PROPERTY LOCATED AT 200 WEST HICKORY STREET AS A HISTORIC LANDMARK UNDER SECTION 35-2151 ARTICLE V OF CHAPTER 35 OF THE CODE OR ORDINANCES) PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF= AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Historic Landmark Commission and the Planning and zoning commission of the city of Denton have recommended that the property herein described be designated as a historic landmark in the City of Denton) NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: =11ON I. That the property located at 200 West Hickory Street, being more particularly described in Exhibit A attached hereto and incorporated herein by reference, is hereby designated as a historic landmark under Section 35-215, Article V of Chapter 35 of the Code of Ordinances of the City of Denton, Texas. ,fifg719N Ii. That said property herein described shall be indicated upon the zoning map of the City of Denton as a historic landmark by the letter "H", and the property herein described shall be subject to all the terms, provisions and requirements of Section 35-215, Article V of Chapter 35 of the Code of Ordinances of the City of Denton, Texas, and such designation shall be in addition to any other use designation established in the City's zoning ordinance applicable to such property. SECTION III. That any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION IV. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR Page 1 1r ~ Y ,i- iG-.93_q as ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: Page 2 III !!I RF.SOURCFS GUARANTY COHFANY ll•OOti705 IERA. DESCRIPTION - CAMPUS THEATRE Exhibit A All that Crrtnin ttnct or pArcel of land lying and being AlhIAted In the city aD o?d And feunty of Prntoit, StAte of Tema, and being out of the William Neill Stitrrv, Abstrnct No. 971, and bring more pnrticulArly described as follows; Frjlnning of the intersection of thn North bottndnry line of Hickory Street Witt) the West bnundnty line of Codnr Street, said beginning corner being the Southeast corner of Block No. 13, of the Original Town of Donton ■nd being the Southeast corner of Lot No. 3 of said Block No. 13; Thence West with the North boUndAty line of Hickory Street, passing at 42.0 Feet the Southwest corner of anid Block No. 13, and continuing a total distance of 78.3 feet to n corner; Thence North with the Fast face of A 13 inch brick wall, sAtd wall being the Evst wAll of A brick building now occupied by the Lone Star CAs Company, 160.0 feet to A corner; Thrace rnet• passing At 36,0 feet the West boundAry line of anid Block No. 13 of the or1glnAl Town of Penton, contlmting a total diatnnce of 78.0 feet to e rornrr In the Wr.at boundAry line of CedAr Street and the EAst boundary line of Block 13; Thence South vIth the Fnst boundAry line of Block 13 and the West boundary line of Codnr Street, 160.0 feet to the place of beginning. NOtF: The Company In prohibited from Insuring the ares or quantity of the IAnd desetlbod herein. Any statement in the Above legal description of the AtPA or quantity of land Is not a reprosentotion that such Area or quantity is cotr-et, bat la made only for lnfetmAtienAl And/or Identification purposes And does not oVrerlde Item 2 of Schedule B hereof. I C ITY_ -CQUNCI oacc r~' OF ~ p .y of O a I C ~endaNo apendait ~"l~ CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Trinity Escrow Agreement RECOMMENDATION: Exercise the agreement by using funds to cover road construction costs for the 300.15 feet of frontage on Hobson Lane. SUMMARY: City crews will reconstruct the road using a subgrade stabilizer and full depth asphalt as per City regulations. The cost of curb and gutter ($2,402.00) which is not proposed for this project would be refunded to Trinity United Methodist Church. R&MROUND: Escrow was set up to cover perimeter street paving in 1987. City has plans to rebuild road from the Hobson Lane Bridge to Teasley Lane and need this escrow to cover total cost of project. PROGB M$. DEPARTMENTS, OR 9LOUPS AFFECTED: Street Division Repaving Program, Engineering and Transportation Department, Utility Department, and the Trinity United Methodist church. FISCAL IMPACTt Use $91598.00 of escrow and refund $2,402.00 to Trinity Unite Methodist Church. Total cost of the project is estimated $57,600.00. ESP FUL I . L y V. Ha cell Ci y Manager Pr aced by: Clark) Je YX Y) Di for Engineering & Transportation Approved: Rick Svhela Deputy City Manager AEEOOOCA/2 MEMORANDUM DATES November 2, 1993 TO: Rick 5vehla, Deputy city Managez FROM; Jerry Clark, Director of Engineering & Transportation SUBJECT; Public Hearing - Trinity Escrow The escrow agreement for perimeter street paving of Hobson Lane as pact of the Trinity Addition, Lot 1, is ready for the public hearing. That consideration would involve the City of Denton exercising its option to call the escrow funds to participate in rebuilding of Hobson Lane. The Trinity escrow is for $12,000.00 of which $2,402.00 was to pay for curb and gutter. We recommend that we call the escrow account for $9,598.00 and refund $20402.00 to the Trinity United Methodist Church. This escrow should be utilized since the Trinity plat has been developed to date. We cleared all procedures and details through Legal. This escrow account should be used to fund rebuilding Hobson Lane as per the original agreement. Our recommendation is to utilize theme funds to participate in this paving project for Hobson Lane. We recommend that $2,402.00 be refunded to the Trinity United Methodist Church since no curb and gutter is involved. c.^ Jo y ar AE600260/28 I a 1233L THE S'rATE OF TEXAS 9 ESCROW AGREEMENT COUNTY OF DENTON 9 WHEREAS, TRINITY UNITED METHODIST CHURCH , hereafter referred to as "Owner", in anticipation of potential future improvements to the street known as Hobson Lane adjacent to property of Owner, within the City of Denton, Texasi and WHEREAS, Owner has, pursuant to the ordinances of the City of Denton, Texas, hereafter referred to as "City", posted the cash deposit referenced herein to insure the extent / of owner responsibility for same,. that any and all streets, water and se,aer lines, drainage facilities or other improvements which are related to any anticipated improvement to Hobson Lane as above referenced as "improvements", are constructed and completed in accordance with tue specifications, standards and ordinances of the City; and WHEREAS, Owner wishes to receive building permits for property adjacent to the above referenced Hobson Lane prior to the development and commencement of any contemplated future / c Improvements by the City; and WHEREAS, in order to receiva such building permits Owner projected or anticipated owner's share of may, where the/cost to complete the improvements is $50,000 or lass, in lieu of posting a performance bond, escrow cash money with a bank as escrow agent in an amount not less than the to the extent of Owner responsibility, the amount necessary to insure/completion of said Improvements; e NUN9 THEREFOREs OWNER, City and First State Bank of Denton, Denton, Texas 76201 , hereafter called "Escrow Agent", agree as follows: 1. Amount. Owner, as a condition to receiving building per- mits for property located at 633 Hobson Lane shall deposit the sum of Twelve Thousand and no/100 Dollars ($12,000.00 in cash money, with Escrow Agent, said sum being in an amount, as determined by the City, necessary to insure to the extent of Owner responsibility /completion of all Improvements which are contemplated with respect to Hobson Lane adjacent to property of Owner within the City of Denton, Texas. u w v - p 0 V A 2. Notice of Deposit, No building permits shall be issued by City for the property herein described until Escrow Agent notifies City, in writing, that cash money, in the amount 4 °o ' a d specified herein, has been deposited in an escrow account with Escrow Agent. 8 w 3. Release of Funds. Escrow Agent shall not release any or either the expiration of ten years from the date hereof / all of the escrowed funds until/the City Engikleer authorizes the Escrow Agent, in writing, to release such funds as provided for herein as follows: (a) the City Engineer shall authorize the release all the escrowed funds when allAImprovements are contemplated future PAG E 2 g completed and approved in accordance with City requirements, the determination of which shall be made by the city Engineer whose judgment shall be binding on all parties hereto. (b) The City Engineer, may, but is not required to, authorize, periodically, the release of specified sums of the escrowed funds to the Owner if, and as, the Improvements are completed and approved or accepted by the City in stages, so long as the remaining funds not released are sufficient to complete the construction of the remaining Improvements which have not been, but are requited, to be completed and accepted or approved by the City. 3. Notices. Any notice to be sent, or required to be sent or given under this agreement shall be sent to the address of the parties hereto, as follows: CITY: City Engineer 215 East McKinney Denton, Texas 76201 OWNER: TRINITY UNITED METHODIST CHURCH 633 Hobson Ln., Denton, Texas 76205 ESCROW AGENT; FIRST STATE BANK OF DENTON Box 100, Denton, Texas 76201 4. Fees. Owner agrees to pay any and all fees or costs charged by the Escrow Agent in connection with this.Agreement. 5. Nonliability of Escrow Agent, The Escrow Agent shall have no responsibility except for the safekeeping and delivery of the amounts deposited in the Escrow Account in accordance with this agreement. The Escrow Agent shall not be liable for any act done or omitted to be done under this agreement or in PAGE 3 k ti k connection 'with the amounts deposited in the Escrow Account except as a result of the Escrow Agent's.gross negligence or willful misconduct. If any question, dispute or disagreement arises aoong any one or more of the parties hereto and/or any ocher party with respect to the funds deposited in the Escrow Account, the proper interpretation of this agreement, the duties of the Escrow Agent hereundec or this agreement the rights of the parties to the Escrow Agent shall not be required to act and shall not be held liable for refusal to act until the question or dispute is settled, and the Escrow Agent has the absolute right at its discretion to do either or both of the following: (a) withhold and/or stop all further this agreement until the Escrow AgentfismSatisfied, by receipt of a writter, document in form and substance satisfactory to the Escrow -Agent and executed and binding upon all interested hereto (who may include the subscribers), parties question dispute, or that the resolved; ; or disagreement has been (b) file a suit in interpleader and obtain by final Judgment an norder bindingcalltmi tetet erescediin the matter, Parties 6. Successors and Al 31 n.as This agreement shall be binding upon the successors and assigns of the parties hereto. 7. Venue, The parties hereto agree that if any legal action is necessary in connection with this agreement, exclusive venue shall lie in Denton County, Texas, PAVE 4 i, r~. WETNtSS I1HEREOF, the said City, Owner, and Escrow Agent have signed this instrument this day of1 J2 / CITY OF DENTON DTRINITY UNITED METHODIST CHURCH BY: C,G,,f-_ BY: 1. ~ ESCROW AGENT FIRST STATE HANK OF DENTON 01 BY APPROVED AS TO LEGAL FORM: DEBRA ADA,KI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS S Y : PAGE S t Va + ! eo.o7 S '``SAP 5 ~ ~ ~ yyt r~ Nib 'tllSr'~~1t1 i n 2 t s LC!1 1 r ~ e w BLOCK i 4,634 ACRES $ z N ~ e w N TRINITY ADYN II ' 1{1I P©B ti- Y. ~ To.ot pip r rcr N eo'7o'PO'w 30019' r+iriC:"ir~aq ,~------~-HOBSON-LANE v i°°evAVEr[c°aNen° e0 R,o,w. PEOUIREO 6[[ POULII,LICP iURV[r v9~~]TCo6T19te50TP~R. i I~ EC ITY~ _COUNCI 1"4nr~~ ~~CCA4GGo~~~, e ~ e ~ ► ° N t ^C~. ~~pG CGCCC'~v x W4No. jjzayadw~ AQeMal - 21M CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council (j FROM: Lloyd V. Harrell, City Manager SUBJECT: Cushman Escrow Agreement RECOMMENDATION: Exercise the agreement by using funds to cover road construction costs for the 99 feet of frontage on spencer. SUMMARY: City crews will reconstruct the road using a subgrade stabilizer and full depth asphalt as per City regulations. The cost of curb and gutter ($800) which is not proposed for this project would be refunded to the Cushmans. BACKGROUND: Escrow was set up to cover perimeter street paving in 1983. City has plans to rebuild road from Woodrow to Loop 288 and need this escrow to cover total cost of project. PROGRAMS DEPARTMENTS OR GROUPS AFFECT Street Division Repaving Program, Engineering and Transportation Department, Utility Department, and the Cushmans FISCAL IMPACT; Use $3200 of escrow and refund $800 to Cushmans. Total cost of the project is estimated at $69,100. LLY STTED: Harrell *CityKanager Prepared by: J r C rk D re to o Engineering 6 Transportation Approved: Rick Svehla Deputy City Manager AEE002AD 49OrdaNo --299 -4f/ AV-ida Ilem A' e- 17 17 MEMORANDUM DATEt November 3, 1993 T0: Rick Svehla, Deputy City Manager FROMs Jerry Clark, Director of Engineering & Transportation SUBJECTt Public Hearing - Cushman Escrow The escrow agreement for perimeter street paving of Spencer Road as part of the Cushman Addition, Lot 1, is ready for the public hearing. That consideration would involve the City of Denton exercising its option to call the escrow funds to participate in rebuilding of this road. We have recently formed a cocoerative venture with Utilities to fund rebuilding Spencer Road from Woodrow Lane to Loop 288. The Cushman Addition lies on the east end of this project. The Cushman escrow is for $4,000 of which $800.00 was to pay for curb and gutter. We recommend that we call the escrow account for $3,200 and refund $800 to the Cushmane. This escrow sho-ild be utilized even though the Cushman plat has not been developed to date. we cleared all procedures and details through Legal. This escrow account sho agre ment signed by Mrsu.lCushmandino1984, Since that time, she has made several claims against the escrow ordinance (the incorrectness of the ordinance and its validity). This agreement allows for a nine year call period plus a one year period to hold a public hearing. This requirement has been consistent since the 1983 subdivision regulation modernization. The recent state law requirse that these type escrows be connected to CIP projects to be built in the next two years as per impact fee legislation. That in the current ordinance and has a very recent history only. Our rec ize these funds to proje t for Spen Spencer Road uWelrecommend that $800 particiate in since no curb and gutter is involved. to thei Cushman@ Jerr C ar i AEE00260__ w 3~7 ESCROW AGREEMENT INSTEAD OF PERFORMANCi BOND THE STATE OF.TEXAS i KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON.$ _ That Richard B. arro2yn S r'nchman i of the City of Denton , County of Denton and State of Texas, as PRINCIPAL, are held and firmly bound unto the City of Denton, in the penal sum of Forty-four hundred eighty and no/100 ($4,480.00 ) for the payment whereof, the said Principal and Surety bind themselves and their heirs, administrators, executors, successors and assigns, jointly and severally, toy these presents: WHEREAS", said Principal has filed with the City" of Denton a plat of a subdivision in the City of Denton or its extraterritorial jurisdiction; more particularly described as The Cushman Addition: Lot 1 subdivision, and, indorsed thereon., the agreement of Principal to install in the subdivision improvements and utilities, to-wit: Street paving, drainage and curb, on section of land 100 feet long nna 17 fopr wiAp required by law to be installed prior to issuance of-building per- rits in said subdivision; and PAGE ONE 8 WHEREAS, provision has been made by law and ordinan a whereby the Principal may, in lieu of the final completion of said improvements and utilities, file a Escrow Agreement acceptable to the City. of . Denton in favor of said City, which shall indemnify said City and secure to said City the actual construction of such improvements, and utilities-in a manner satisfactory to said City, in the event said Principal shall fail to install said improvements and utilities within 366 days from date hereof; and WHEREAS, developer has designated First State Bank of Denton, Texas as escFo~r agent hereunder; and WHEREAS, developer has entered into the following contracts for the development and installa::ion of the following improvements and utilities, to-wit: 100 feet long by 17 feet wide. street paving, drainage and curb NOW, THEREFORE, 'the City of Denton, ~eveloper and First State Bank of Denton hereby agrees as follows: 1. All parties agree that the said sum of S 6,480.00 will be held on account with First State Bank of Denton and that withdrawals will be nade only for the payment and completion of the above des^ribed utilities an.; improvements, and that First State Bank of Denton agrees to hold said suja for this purpose PAGE T'~+G v Agenda No Agendaltem Date until all said improvements are installed and approval and acceptance of said improvements are given by the City of Denton, Texas. 2. Any interest which may accrue on the escrow account may be retained by the Developer provided that all said improvements are completed, approved and accepted by the City. 3. Developer agrees to pay any and all escrow fees charged by First.State Bank of Denton for handling the said escrow account. 4. The City shall give written notice to Developer and First State Bank of Denton prior to taking exclusive control and possession of said escrow account as provided for by the attached escrow agreement. IN WITNESS WHEREOF,, the parties to this instrument have hereto set their hands, executed as to the original and two copies, on this the 6th day of January , 1984. CITY OF DENTON, TEXAS DEVELOPER U U, ESCROW AGENT First S ate Bank of De ton a C ~rl' O~MII~ I~YM Jerry Fa o, Vice President PAGE THREE 566 50'40"E 1000 1 F ~ m r „ r o, ~ N a ~ 0.5831 Acre e . LOT ONE PCPi9D~C01w4tF, 1,. 8[OCk owe e a W 0 10 iA - 2 N to?~~~!~ 23' BFif/ink 17nL7 14 87's8'4 }.O`. tai clmel~l~a r~9..w 99. 98-~~ y2' }i0000'^~''" SE,~r• spa u5 wx~ v. P.87 0 D _ SPENC`fR ~ - vviN. - W9 p! rl r~ May 28, 1993 City of Denton Mr. David Ayers Municipal Building 215 E. McKinney Denton, Texas 16201 RE: Escrow Agreement-Cushman Addition, Lot I Dear Mr. Ayers: Please consider this a written request for my money which is still in escrow with the City of Denton. As you know, I have been requesting that this money be released to me since 1989. And I firmly believe that it should already have been. Respectively yours, / Carolyn S. Cushman I 2536 La Paloma Denton, Texas 76201 CITY - COUNCI r s a • ~DQCCCCC~~~~ k y 4 1P~ { ApeaMO. aOeaCalt ORDINANCE NO. AN ORDINANCE ACCEPTING A COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated com- petitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the ma- terials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" attached hereto, are hereby accepted and approved as being the best responsible bids for such items: BID ITEM NUMBER NO. VENDOR AMOUNT 1550 ALL HRMBERS BUILDING MAINTENANCE $74,230.3, CORP. 1551 1,2,3 TECHLINE INC. 1551 4 TEMPLE INC. $58,225.00 1561 ALL NORTON TREE SERVICE EXHIBIT IBIT $ A00. 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 accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. .Q aQ9Rt'2 No. ' Agcadal,eo~ 2~ s 0 SECTION III. That should the City and perMis-"bmitt ng-ap- proved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, spec- ifications, standards, quantities and specified sums contained In the Bid Proposal and related documents herein approved and accepted. SECTION IV. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids or pursuant to a written contract rude pursuant thereto as authorized herein. SECTION V. That this ordinance shall become effective imme- diately upon its passage and approval. PASSED AND APPROVED this _ day of , 1993. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: I Bll) # - 1561 Venda No BID NAME TREE TRIMMING HORRTON .4 "'o&" Agendaltem~.A OPEN DATE NOVEMBER 2, 1993 SERVICE [kilo QUANTT DESCRIPTION VENDOR) EXHIBIT A 1AlPER FOOT OPEN EASEMENT £0.591 1B PER FOOT CLOSE EASEMENT $1.13; 1C PER FOOT COMBINES OPEN & CLOSED $0.85 1D:PER FOOT TRIM BELOW PHONE LINE .15 OPEN ID, PER FOOT TRIM BELOW PHONE LINE .15 CLOSED i 1EjlPER FOOT TRANSMISSION LINE ROW $1.20 CLEARANCE I i 14 , DATE: NOVEMBER 16, 1993 CITY COUNCIL REFOR'L;? x'10 TO: Mayor and Members of the City FROM: Lloyd V. Harrell, City Manager I ' T!/-/G 19~ SUBJECT: BID # 1550 --JANITORIAL SERVICES FOR RECREATION CENTERS RECOMMENDATION: Council approve award of Bid #1550 Janitorial Services for Recreation Centers to the low bidder meeting specifications, Members Building Maintenance Corp., in the amount of $74,230.32 per year. SUMMARY: This bid is for the price comparison of annual cleaning services for the recreation centers. These facilities are: Civic Center, Senior Center, Denis Recreation Center, North Lakes Recreation Center, Tennis Center and Martin Luther King Jr. Recreation Center. The bid also included window cleaning and carpet cleaning in addition to routine janitorial services. The vendor submitting the lower priced bid proposal, Brazos Contracting, did not supply the City of Denton with the required list of at least three references for contracts of comparable size to this bid. Brazos is currently cleaning for the City of Denton (City Hail, Police, Service Center and Equipment Services) but does not receive a positive recommendation for award of additlonal bid items. Currently Brazos Is In a 30 day notice of intent to terminate for unacceptable performance with regard to the Equipment Services Division and twice monthly payments have been held until such a time that the required cleaning be done according to bid specifications. The references, as stated in the bid specifications, were to be used during the bid evaluation. The six recreation centers total approximately 80,000 square feet and being public facilities are high visibility areas subject to the use and scrutiny of Denton's citizens and visitors. Positive feedback from vendor's references on comparable size contracts was an Integral component of the bid evaluation in an attempt to secure the lowest responsible bid for this project. Members Building Maintenance's references were all comparable sizes and gave them excellent recommendations. BACKGROUND: Tabulation Sheet, Memo from Mary Ragusa, Facilities Management. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Facilities Management, Citizens and Patrons of Denton Recreatior Centers. FISCAL IMPACT: Sufficient funding for this award is available in the '94 operating budget account #100-032-0002-8502 (Special Services). t COUNCIL REPORT L NOVEMBER 16, 1993 J- PAGE 2 OF 2 4Rese ully su tted: Harrell y ager Prepared By: Name: S lance Harden L2 6 Title: Buyer Approved: Name: Tom D. Shaw,C.P,M. Title: Purchasing Agent aganda.156 r . _ _ _ 1550 BID* BID NAME JANITORIAL SERVICES FOR PEDUS MEMBER'S BRAZOS BRITTON RECREATION CENTERS SERVICES BLDG CONTRACTING BUILDING PEN DATE OCTOBER 26, 1993 INC MAINT. MAINT _ CORP 1. 1/YR CIVIC CENTER y16.697.15 $17,966.00 $11,040.00 $20,665.96 1A lI/YR CLEANING HIGH WINDOWS $375.00 $59.04 $168.00 $125.00 1B 2/YR CLEANING LOWER WINDOWS $180.00 $22.14 $90.00 $100.00 1C 2/YR CLEANING CARPET $800.00 $29,52 $200.00 $325.00 2 1/YR SENIOR CENTER $14,566.42 $15,162.00 $13,336.00 $17,061.88 2A 21YR CLEANING WINDOWS $150.00 $44.28 $126.00 $76.00 213 21YR CLEANING CARPET $480.00 $44.28 $200.00 $75.00 3 1/YR OENIA RECREATION CENTER $12,867.36 $10,608.00 $9,968.00 $12,135.48 3A 2/YR CLEANING WINDOWS $120.00 $21.50 $170.00 $20.00 3B 2/YR CLEANING CARPET $360.00 $28.60 $175.00 $25.00 4 1/YR LAKES RECREATION CENTER $12,867.36 $10,608.00 $9,968.00 $12,135.48 4A 2/YR CLEANING WINDOWS $120.00 $21.60 $170.00 $20.00 B 2/YR CLEANING CARPET $200.00 $28.50 $175.00 $25.00 5 1/YR TENNIS COURT $6,136.96 $1,131.00 $968.00 $2,733.00 5A 2/YR CLEANING WINDOWS $180.00 $21.60 $60.00 $15.00 6 1/YR MARTIN LUTHER KINGJR., $20,310.35 $18,040.00 $8,616.00 $10,624.12 RECREATION CENTER SA 3/YR CLEANING WINDOWS $240.00 $22.14 $194.00 $150.00 68 3/YR CLEANING CARPET $350.00 $22.14 $200.00 T? p"0.00 BOND YES YES YES o b - - - - - - - - - - - - r BID NAME TREE TRIMMING WHITMIRE HORTON LINE TREE PEN DATE NOVEMBER 2, 1993 CLEARANCE SERVICE _ INC _ OLTANTITY _T-DES~RIPT~O - VE~1t5 _.__E 6 _ _ PTDC3Fi-- --V i-EI--RA iA ER FOOT OPEN EASEMENT $0.64 $0.59 1B ER FOOT CLOSE EASEMENT $1.28 $1.13 1C ER FOOT COMBINES OPEN & CLOSED $0.96 $0.85 1 D ER FOOT TRIM BELOW PHONE LINE .79 OPEN .15 OPEN 1 D ER FOOT TRIM BELOW PHONE LINE 1.43 CLOSED .15 CLOSED 1E ER FOOT TRANSMISSION LINE ROW $1.85 $1.20 CLEARANCE v; oa ci C C~ A { k 1 EXHIBIT I ITEM 3: LOSSICOST EVALUATION CF A 50 KVA 120240 PADMOUNTED TRANSFORMER QUANTITY TWENTY-FIVE MADE NL TL BID CALCULATED DELIVERY BIDDER BY LOSSEFI LOSSES[ COST COST DAYS CUMMINS C MALONEY I 1051 5271 S1,111 SSW 981 DELONEY ERMCO 115: 5291 $1.0871 55,9431 701 POUELINE 1 KULHMAN 1061 4991 51,2991 $6,518' 981 POLELINE 2 C MALONEY 1051 5271 31,1191 $5.9931 981 PRIESTER COOPER 91' 5691 $1,0321 $5.7801 35! SESCO SESCO 1601 7201 $1,801 $9,1941 1201 TECHLINE HOWARD 113 508 $ t 001 $5.569 112 TEMPLE GE 1041 573! 51,305! $67621 1331 VANTRAN VANTRAN 851 5251 $1,4051 $6,6501 631 WESCO ! ABB _ 1101 4891 $1,084 1 $5,780: 911 I LOW BID 555691 r it ITEM 4, LOSS/COST EVALUATION OF A 50 KVA 120/240 OH CONVENTIONAL TRANSFORMER QUANTITY TEN MADE NIL TL BID CALCULATED DELIVERY BIDDER BY LOSSESI LOSSESI COST COST DAYS CUMMINS C MALONEY! 1051 5831 $7891 $5,055 98 i y OELONEY ERMCO 1111 5041 $7881 $4,8331 701 POLELINE 1 1 KUHLMAN 1061 $241 $7991 $4,9071 _ 961 POLELINE 2 I C. MALONEY 1 1051 5831 $793' S5,0691 981 PRIESTER ICOOPER 951 3981 $1,0701 $5367; 771 SESCO I SESCO 1361 8451 58911 $6,3901 1201 TECHL~~_ HOWARD _ 116 SW $7081 $4.7781 112 TEMPLE GE 104, 580, $809! $5,1081 ` 1331 VANTRAN VANTRAN 851 5351 $1,0821 $5.M 1 631 WESCO A13B III SIB I $7231 $4,9741 631 LOW BID $4,778! A,ITRAN%T215SI1E1351 WI(] BID 1531 20-Oct-0.1 11 02 AM PAGE 2 f DATE: NOVEMBER 16, 1993 CITY COUNCIL REPORT TO: Mayor and Members of the City Council "L) FROM: Lloyd V. Harrell, City Manager SUBJECT: BID / 1581 - TREE TRIMMING RECOMMENDATION: We recommend this bid be awarded to the low bidder, Horton Tree Service, for tho unit prices listed below: Open Easement .59 Per Ft Closed Easement 1.13 Per Ft Combined Open & Closed .85 Per Ft *Additional to Trim Below Phonelines .15 Per Ft Transmission line R. of W. Clearance 1.20 Per Ft SUMMARY: This bid is for all materials and labor required in trimming trees from the electric distribution lines of the City of Denton. Approximately fifty thousand feet of line area, or up to eighty thousand dollars, will be cleared. The cost of trimming trees below phone lines (R) will be split with the Telephone Company if they choose to participate. Two proposals were received In response to four bid packets mailed to vendors. BACKGROUND. Tabulation Sheet, Memorandum from Ralph Klinke, dated 11-8-93. FISCAL IMPACT: Funds for this project are available from 99 budgeted account #8]0-103-1031-593X-8338 for overhead line maintenance. y ~ lly bU tt : Harrell City Manager Prepared By: Name: Denise Harp o Title: Senior Buyer proved: Name: Tom D. Shaw,C.P.M. Title: Purchasing Agent • ^ 1 Y. 5 CITY of DENTONMUNICIPAL UTILITIES/ 901 ATe ass1f~~R / Oenton,TX76201 M E M O R A N D U M TO: Tom Shaw, Purchasing Agent FROM: Ralph Klinke, superintendent, Electric Distribution DATE: November 8, 1993 SUBJECT: BID #1561 • TREE TRIMMING Electric 1 istribution recommends that the ~logw bgdforom Horton Tree tree rimming Service be accepted for tree trimming. for misceyllaneous electric lines in the City of Denton of approximately 50/mft. jqb ` 1 83050 cc: Jim Harder,nDirectoriof Electric utilitiesies E. Nelso, 3 . II~~ A i n •iJ ail ~1~-~/ CITY of DENTON, TEXAS MUNICIPAL BUILDING DENTON, TEXAS 76201 TELEPHONE (8171566.8200 MEMORANDUM T0: Melanie Harden, Buyer FROM: Mary Ragusa, Administrative Assistant DATE: October 29, 199? SUBJECT: Janitorial Services Bid 1550 We recommend the City award the janitorial services contract to members Building Maintenance. They have excellent references and contracts of comparable size to this bid. Attached is a purchase order for $74,230.32 written to Members Building Maintenance. The low bidder, Brazos Contracting, Inc., did not have 3 references of comparable size. If you have any questions please call me at 7201. e Mary ~usa, ministrative Assistant 1b19.FM II r DATE: NOW NBER 16, 1993 CITY COUNCIL. REPORT TO: Mayor and Members of the City Council Q,3'o-4!3 FROM: Lloyd V. Harrell, City Manager /(-/G - 9~ SUBJECT: BID 1 1551 - DISTRIBUTION TRANSFORMERS RECOMMENDATION: We recommend this bid be awarded to the low evaluated bidders, Techane Inc. in the total amount $58,225.00 for items 1, 2 & 3, and Temple Inc., in the total amount of $7,080.00, for item 4. SUMMARY: This bid is for the purchase of Po f u used nounted and conventual overhead new installations, distribution transformers. These will replacements, and back ups, through-out the City of Denton Electrical System. The evaluation of cost is based on the calculated cost, initial and operating. Transformers with lower bid unit cost, but higher load losses result in higher calculated costs. Nine bid proposals were received in response to nineteen bid packets mailed to vendors. BACKGROUND: Tabulation Sheet, Memorandum from Donald McLaughlin dated October 20, 1993. FISCAL IMPACT: Funds for this purchase are available from 94 budgeted account 4610-103-1031-3684-9222 for line transformers. Rasp .fully s 41tled ! d V. Harrell City Manager Prepared By: Name: Denise Harpool Title: Senior Buyer Approved: .'7 W~t~' Name: Tom D.Shaw,C.P.M. 'Title: Purchasing Agent ~q~nd~.p3 BID # 1551 BID NAME DISTRIBUTION CUMMINS WESCO PRIESTER SESCO TECHLINE TRANSFORMER PEN DATE OCTOBER 14, 1993 _ 'QUANTITY _ _ DE CHIPTION _ __VENDOR"' VENDOR VENDOR— VENDOR VENDOR_-_ 1. 8 EA 150 KVA 120/208V $4,006.00 $3,885.00 $3,296.00 $4,765.00 $3,538.00 2. 1 EA 300 KVA 120/208V $5,621.00 $5,278.00 $4,795.00 $6,011.00 $4,896.00 3. 25 EA 50 KVA 120/240V $1,111.00 $1,084.00 $1,032.00 $1,801.00 $1,001.00 4. 10 EA 50 KVA 120/240V $789.00 $723.00 $1,070.00 $691.00 $708.00 MANUFACTURER 1-2 ABB COOPER RTE HOWARD PAUWELLS 3-4 f MALONEY DELIVERY 10-14 WKS 9-13 WKS 5-18 WKS 60-120 DAY 14 -16 WKS TEMPLE VAN TRAN POLELINE POLELINE DELONEY ALT. 1Lc; UANTITY DESCRIPTION VENDOR VENDOR VENDOR VENDOR VOR 150 KVA 120/208V $4,918.00 $4,025.00 $3,989.00 1. 8 EA 2, 1 EA 300 KVA 120/208V $6,309.00 $5,785.00 $5,649.00 - - t N/ 87.00 3. 26 EA 60 KVA 120/240V $1,305.00 $1,405.00 $1,299.00 $1,119.00 1, 4. 10 EA 50 I(VA 120/240V $809.00 $1,082.00 $799.00 $793.00 l $ 88.00 1-2 C MANUFACTURER ELGENERAL ECTRIC VAN TRAM PAUWELLS MENTRAL 3-4 KUHLMAN -DELIVERY 12-113DAY 63 DAYS 10-14 WKS L 14 WKS___l_87_10 WKS I i ^ A 1CITY Of DENTON MUNICIPAL UTILITIES/;o.•„ ex~5trbevnenton,7X 76201 MEMORANDUM TO: Denise Harpcol, Senior Buyer FROM: Donald L. McLaughlin, Senior Engineer, Electric Engineering DATE: October 2U, 1993 SUBJECT: EVALUATION OF HID #1551 The Utility Staff recommends awarding the bid to low bidders as follows: 1. Techline for eight 150 KVA 120/208 volt transformers Manufacturer: Howard Cost: $3,538 Total Cost: $28,304 Transformers are for the following customers: a, Hank One 111 b. 111 E. University c. Bell Avenue I Conversion d. Applebee's Restaurant The remaining four transformers are to maintain stock. 2. Tar_hline for one 300 KVA 120/208 volt transformers Manufacturer: Howard Cost: $4,896 The transformer is to increase stock level from two to three. 3. Techline for twenty-five 50 KVA 120/240 volt UG padmount transformers Manufacturer: Howard Cost: $1,001 Total Cost: $25,025 Transformers are for the following developments: a. Hunter's Ridge 3 b. East Oak 3 c. Forrestridge II 10 d. Greenfield Woods 4 e. Southridge East 5 I Transformer Bid #1551 Page 2 ' / 4. Temple for ten 50 KVA 120/240 volt CH co ventional transformers Manufacturer: Howard Cost: $780 Total Cost: $7,080 Transformers are needed for the PCB removal program and stock. Cost of bid is $65,305. Attached is the spreadsheet used to evaluate the transformers. if you have any questions or comments please call me. DLM:tn 10203029 Attachment: Bid Evaluation Sheet cc: Jim Harder, Director of Electric Utilities Joe Cherri, Electric Engineering Administrator EXHIBIT I STEM 1. LOSS/COST EVALUATION OF A 150 J 120/208 PACYOUNTED TRANSJ QUANTITY EIGHT MADE NL TL Blp CALCULATED DELIVERY BIDDER BY LOSSES LOSSES COST COST DAYS CUMMINS PAUWELLS 296 1908 S4A06, S21_110' POLELINE PAUWELS 295 1908 84 PAiESTER COQPFR 329 1962 $3'989 $21,048, 84 SESCO SESCO 53.?361 519,0521 128, TECHLINE 4401 20401_ $4,765 $24,838. 120, _fkOWAAD 3471 1897 53N11 S1B98D 112 TEMPLE GE 2881 14501 54118, 522,691 VANTRAN VWTPR 3401 1760 1331 WESCO Add 307 1915 --'54,025;_ $20933 _ 53,885 520,7801 771 - LOW BID 518,9691 r _ t ITEM 2: LOSS/COST EVALUATION OF A 300 KVA 120!208 PADMOUNTED TRANSFORMEA QUANTITY C NE MADE NL TL BID CALCULATED 1 DELIVERY 1 BIDDER BY LOSSES/ LOSSES/ COST COST DAYS CUMMINS PAUWFLLS 4831 3064! POLELINE ?pUyVELS 13064 i 55.621; 531,1 95, 94~ PRIESTER COOPER 5421 34171` 55,6491 5312901 841 SESCO SESCO S4 795 ` 529,8281 126 f TECH LINE HOWARD 623 1 SB 011 ~ S33 2331 1201 TEMPLE GE 508 -50 8 S28 5531 1121 465 2592, _ _$6.309 $311331 133, VANTRA,N VANTAAN 515 3355' J SS 785 832638 ~ 1331 A80 S 512 3396 _ $51278' $31,243 77, LOW BID 526 S53 A.1TaANX"165t;f 1u1 WK3 BID 1651 20-OCI-o3 PAGE 1 11 oa AM I =CITY: COUNCI 00 *old 4 z a s 'tom 10 M 1 ! +fJ~O`~ tiTla a0 OGC ~ ~edeke. -3- 4peadalts Date ORDINANCE 110. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated com- petitive 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 receiv- ed and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or im- provements described in the bid invitation, bid proposals and plans and specifications thereini NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the following competitive bids for the con- struction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as be- ing the lowest responsible bids: BID NUMBER CONTRACTOR AEOUNT 1557 SLN40UNT CORP. $206,257.50 SECTION IT. That the acceptance and approval of tie above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, after notification of the award of the bid. SECTION 111. 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 Propos- als, and documents relating thereto specifying the terms, condi- As~~^.~13118m,~'~'sa tions, plans and specifications, standards, quantitie"sgld speci- fied sums contained therein. SECTION IV. That upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council here- by authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION V, That this ordinance shall become effective im- mediately upon its passage and approval. PASSED AND APPROVED this the _ day of ,1993. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY., APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: i DATE: NOVEMBER 169 1993 CITY COUNCIL REPORT TO: Mayor and Members of the City Council4n,11?10' FROM: Lloyd V. Harrell, City Manager SUBJECT: BID # 1557 -JIM CHRISTAL ROAD PAVING AND DRAINAG RECOMMENDATION: We recommend this bid be awarded to the low bidder, Sunmount Corp, in the total amount of $208,257.50. SUMMARY: This bid is for all labor and materials required in construction of this project which is shown on the attached map. Sunmount Corp. was the low bidder on both the concrete and asphalt alternates. Ben E. Keith Distributing who's property abuts this project will be reimbursing the City for the difference between the asphalt and concrete bids. Four bid proposals were received in response to sixty-nine notices to bid mailed to contractors. BACKGROUND, Tabulation Sheet, Memorandum from David Salmon dated 11.9-93. Letter to Mike Jones of Denton County Public Works dated 9-8-93, Map of project area, FISCAL IMPACT., Funds for this project will be reimbursed to the City by Denton County. Res&VV. y su itt d: qLl yd Harrell City Manager Prepared By: Name~- Title: Senior Buyer Approved: I a e. om D. Shaw,C.P.M. Title: Purchasing Agent aQanda. U! ' ea«.s BID NAME JIM CHRISTAL ROAD MW DBR JAGOE SUNMOUNT PAVING & DRAINAGE BUILDERS CONST PUBLIC CORP PEN DATE NOVEMBER 4, 1993 WANfifiT VENCioFi_.. __Vr:NOOII_ -VENtioN _VrrNt56Fi VIENDOa 1 ASPHALT BID NO BID $197,862.00 $220,144.68 $188,383.60 2 CONCRETE BID NO BID $220,104.00 $238,646.65 $200,257.60 3 DEDUCTIVE ALTERNATE NO BID $73,560.00 $106,195.00 $86,819.00 BID BOND YES YES YES ~b a C1 S~ Co. 0 y i 4 W A,- A -09-'~103: 51 42 1! D wry of DENTON$ TEXAS MUNICIPAL SUILD1NO / 215E MCKINNEY / DENTON, TEXAS 76201 MEMORANDUM DATES November 9, 1993 TO: Tom Shaw, Purchasing Agent FROM: David Salmon, Senior Civil Engineer SUBJECT: Jim Christal Road Paving Drainage Phase I Bids were opened for the above mentioned project on November 4, 1993. Sunmount Corporation was the low bidder on both the asphalt and concrete alternates. The concrete bid was $206,257.50. The unit prices appear to be reasonable and the total bid is about $26,000 lower than our engineers estimate. Sunmount Corporation has performed many paving projects for the City of Denton with excellent results. Also, Ben E. Keith Distributing whose property abuts this project will be reimbursing the difference between the asphalt and concrete bid. Considering the above factors, I recommend that Sunmounts concrete bid be accepted and this item be placed on the next possible City Council agenda. David Salmon AEE002DA 8171566.8200 D/FW METRO 434.2529 r-- P GM of ORMTOM, T/X" MUNICIPAL allILDINa / 216 a McKINNEY / DENTON, TEXAS 7620f septV-"-'2er s, 1993 RLks Jonesr P.S. Director of public Works 110 No dick0ry Denton, Tr. 76201 Dear Rikei wo appreciate your help in allowing the Jim christal project to be split into twd phases. This will greatly help the ben Keith Company use their now warehouse expansion to its capacity. That activity will help both our operations. The Jim Chrietal project has rows history of concept plaantnq that goes back to your two predecessors red Kihe starek. since the project Lnvolves creation of a new major railroad crossing with signal codtreli cross arcs, we had discusaW the mead to sake the crassLnq / lane from 236 to the railroad and then an immediate transition down to 2 lanes west of the railroad according to AAS3ITC design standards. Jim Chrietal s original IZJ► addsosees a two lane road which it will be for our 95% of its lengths The crossi.og signal systems mood to be put into operation for the ultimate lane road section to avoid very cobtly construction mad time delays Ln the future. ben e. Keith has put up tht money to upgrade the s' asphalt section to e" concrete freso135 to the railroad. The tour lam road will help the safe turning movements into their drive plus allow ate st for all sdvesentso we hops that eon Keith is one of many industries that will use this access to 13S in the future. Onion Camp will have its access and trucks routed to this locations please revise the Later local agreessdt to allow this type construction. The City of Denton realizes that the budget will dot be revisal upward with Denton County bond funds if additional costs result from thew 9Wesi90 featurees sincerely, nn r ar ~ p.l. t tdginestin9 0 Transportation A88002Ao 81 71666-49200 0/FW MErRO434.2629 ..y 0~ 06 2-8 x 5 t30x CU VE Rr AT 0.80 N R,QW. R. Q W. *1 SLOP ~ 4;15 P 34 OF CENTURY NOTE: 188 f.19, C EXISTING JIM PRECAST CONCRETE PER I CHRISTAL CROSSING R.D.W. ~RO,W. 8 RCP 8:f ~Lg~1DS SAFETY EN D EN 4 r ' m as 0 -CITY= MCOUNCI ~~aooo o m ~v r M r ~~La+r oO~ ~Q~LQC~ ~i..r Wr r she AQendalte S We - ORDINANCE NO. (~l. AN ORDINANCE AUTHORIZING THE PURCHASING AGENT TO EXECUTE A PURCHASE ORDER WITH CORGAN ASSOCIATES, FOR PROFESSIONAL SERVICES RELATING TO GEOTECHNICAL AND ARCHITECTURAL. ANALYSIS AT THE MARTIN LUTHER KING RECREATIONAL CENTER; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING THE EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Purchasing Agent Is authorized to execute a Purchase Order between the City of Denton and Corgan Associates, for professional services relating to the Geotechnicai and Architectural Analysis, under the terms and conditions contained In said agreement, which is attached hereto and made a part hereof. SECTION 11. That the City Council hereby authorized the expenditure of funds -M - the manner and amount as specified In the agreement. SECTION III. That this ordinance shall become effective Immediately upon Its passage and approval. PASSED AND APPROVED this the day of 1993. BOB ASTLFBERRYj MAYOR ATTEST: JENNIFER WALTRRS, CITY SECRET RY APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCII, CITY ATTORNEY BY: ou,ooc DATE: NOVEMBER 16, 1993 CITY COUNCIL R ?ti0,~ % -3 TO: Mayor and Members cf the City FROM: Lloyd V. Harrell, City Manager SUBJECT: PURCHASE ORDER /32204 - CORGAN ASSOCIATES ARCHITECTS RECOMMENDATION: We recommend this Purchase Order Number 32204 to Corgan Associates Architects be approved in the amount of $10,796.63. SUMMARY: This purchase order is for the architectural services for the moisture abatement project at MLK Recreation Center. The original agreement was for bringing $9,950.00 the plus reimbursable expenses, These reimbursable expenses totaled$896.63 purchase order total to $10,796.63. This project was started prior to the new $15,000.00 purchase limit being approved and therefore will require Council Approval under the old $10,000.00 limit. Architectural services are exempt from the bid process as a professional service, Chapter 252 Texas Local Govt. Code. BACKGROUND: Purchase Order 032204. PROGRAMS DEPARTMENTS OR GROUPS AFFECTED: Facilities Management, Parks and Recreat on and MLK Rec Center. FISCAL IMPACT: 1992-93 Budget Funds Account Number 0444-031-PARK-8905-9101. lly sub tted: ResK i arr ell City Manager Approved: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent PURCHASE ORDER NO: 32204 THIS 15 A This number must appear on an CONFIRMING ORDER cans. s, delivery saps, cases, (IF MARKEDI tins., boles, packing skips and bus DO NOT DUPLICATE Req No erd No io) Date 11-10-93 Page No PURCHASING DIVr50N f 901 B DEN SWEI / DEXLASEXAS 16201-431,4 tEXAS VENDOR 6 1 71383-7 100 DIFVV METRO 817/267-0042 FAK 817/382-4692 NAME/ CORGAN ASSOCIATES DELIVER! CONFIRMATION ONLY C38 ADDRESS 501 ELM STREET SUITE 500 ADDRESS FACILITY MGMT 321 E. MCKINNEY DALLAS, TEXAS 75202 DENTON, TEXAS 76201 VENOM NO.COR31000 DELIVER dUOTED FOB DESTINATION BUYER TS TERMS LINE T UNIT DESCRIPTION UNIT PRIDE AMOUNT 01 9950.00 EA VENDOR CAT. 1 N/A MFG NAME 1.00 9,950.00 RENOVATION OF MLR RECREATION CENTER 02 846.63 ea VENDOR CAT. i N/A MFG NAME 1.00 846.63 REIMBURSABLE EXPENSES r CV N d 01 444 031 PARK 8905 9101 10,796.63 10,796.63 VENDOR INSTRUCTIONS: - 3 Terms • Nei 30 1110 U Send original invoice with dapbule cape 4. Shipping mstruclions: E0.8 Destiualron prepaid ruo...,~.,,,,.. ,.n 2. Bill lo - Accounts Payable 5. No federal or state sates tae shall be included 215 E. McKlnney St in prices billed. urc acing Mslom - Oehion, 1K 16201-4299 I a n~ 3 AGREEMENT FOR ARCHITECTURAL SERVI~EB This Agreement made as of tha 12 day of _ .TAmtmgy , 1993 between the City of Denton, Texas, hereinafter referred to as "Owner", and Corgan Architects, hereinafter referred to as "Architect" for the following Project: Design and contract administration services for the repairs of the Martin Luther King, Jr. Recreation Center in accordance with Architect's recommenda- tions contained in its report to Owner entitled, "Martin Luther King, Jr. Recreation Center Investigation of Facility: Final Report presented to the Denton City Council on November 3, 1992. The Owner and Architect agree as set forth below. ARTICLE 1 ARCHITECT'S RESPONSIBILITIES 1.1 ARCHITECT'S SERVICES 1.1.1 The Architect's services consist of those services per- formed by the Architect, Architect's employees and Architect's con- sultants as enumerated in Articles 2 and 3 of this Agreement and any other services included in Article 11. 1.1.2 The Architect's services shall be performed as exped- itiously as is consistent with the highest degree of professional skill and care and the orderly progress of the Work. Upon request of the owner, the Architect shall submit for the owner's approval a schedule for the performance of the Architect's services which may be adjusted as the Project proceeds, and shall include allow- ances for periods of time required for the Owner's review and for approval of submissions by authorities having jurisdiction over the Project. Time limits established by this schedule and approved by the Owner shall not, except fog reasonable cause, be exceeded by the Architect or owner, and any adjustments to this schedule shall be mutually acceptable to both parties. 1.1.3 The services covered by this Agreement are subject to the time limitations contained in Subparagraph 10.4.1. ARTICLE 2 SCOPE OF ARCHITECT'S BASIC SERVICES 2.1 DEFINITION 2.1.1 The Architect's Basic Services consist of those describ- ed in Paragraphs 2.2 through 2.6 and any other services identified in Article 11 as part of Basic Services, and include without limi- tation normal structural, mechanical and electrical engineering services and any other engineering services necessary to produce a c i complete and accurate set of Construction Documents, as described by and required in Paragraph 2.4 . P 7 2.2 SCHEMATIC DESIGN PHASE 2.2.1 The Architect, in consultation/ wi h t e Owne ifk~il develop a written program for the Project to ascertain owner's needs and to establish the requirements for the Project. 2.2.2 The Architect shall provide a preliminary evaluation of the Owner's program, construction schedule and construction budget requirements, each in terms of the other, subject to the limita- tions set forth in Subparagraph 5.2.1, 2.2.3 The Architect shall review with the Owner alternative approaches to design and construction of the Project. 2.2.4 Based on the mutually agreed-upon program, schedule and construction budget requirements, the Architect shall prepare, for approval by the owner, Schematic Design Documents consisting of drawings and other documents illustrating the scale and relation- ship of Project components. The Schematic Design shall contemplate compliance with all applicable laws, statutes, ordinances, codes and regulations. 2.2.5 The Architect shall submit to the owner a preliminary detailed estimato of construction Cost based on current area, volume or other unit costs and which indicates the cost of r ch category of work involved in constructing the Project and estab- lishes an elapsed time factor for the period of time from the commencement to the completion of construction. 2.3 DESIGN DEVELOPMENT PHASE 2.3.1 Based on the approved Schematic Design Documents and any adjustments authorized by the Owner in the program, schedule or construction budget, the Architect shall prepare for approval by the Owner, Design Development Documents consisting of drawings and other documents to fix and describe the size and character of the Project as to architectural, structural, mechanical and electrical systems, materials and such other elements as may be appropriate, which shall comply with all applicable laws, statutes, ordinances, codes and regulations. Notwithstanding Owner's approval of the documents, Architect warrants that the Documents and specifications will be sufficient and adequate to fulfill the purposes of the Project. 2.3.2 The Architect shall advise the owner of any adjustments to the preliminary estimate of Construction cost in a further Detailed Statement as described in Paragraph 2.2.5. PAGE 2 2.4 CONSTRUCTION DOCUMENTS PHASE 2.4.1 Based on the approved Design Development Docents and any further adjustments in the scope or quality of the Project or in the construction budget authorized by the Owner, the Architect shall prepare, for approval by the Jwner, Construction Documents consisting of Drawings and Specifications setting forth in detail requirements for the construction of the Project, which shall comply with all applicable laws, statutes, ordinances, codes and regulations. 2.4.2 The Architect shall assist the owner in the preparation of the necessary bidding information, bidding forms, the Conditions of the contract, and the form of Agreement between the Owner and contractor. 2.4.3 The Architect shall advise the Owner of any adjustments to previous preliminary estimates of Construction Cost indicated by changes in requirements or general market conditions, 2.4.4 The Architect shall assist the Owner in connection with the Owner's responsibility for filing documents required for the approval of governmental authorities having jurisdiction over the Project. 2.5 BIDDING 2.5.1 The Architect, following the Owner's approval of the Construction Documents and of the latest preliminary detailed estimate of Construction Cost, shall assist the Owner in obtaining bids and assist in awarding and preparing contracts for construc- tion, 2.5.2 If the lowest bid for the construction of the Project exceeds the total construction cost of the Project as set forth in the approved Detailed Statement of Probable Construction Costs of the Project submittei by the Architect, then the Architect, at its sole cost and expense, will revise the Construction Documents as may be required by the City to reduce or modify the quantity or quality of the work so that the total construction cost of the Project will not exceed the total construction cost set forth in the approved Detailed Statement of Probable Construction Costs. 2.6 CONSTRUCTION PHASE - ADMINISTRATION OF THE CONSTRUCTION CONTRACT 2.6.1 The Architect's responsibility to provide Basic services for the Construction Phase under thi's Agreement commences with the award of the Contract for construction and terminates at the issu- ance to the Owner of the final Certificate for Payment, unless ex- tended under the terms of Subparagraph 9.3.2. PAGE 3 I s ~tlnri7 Nn Agenaa tem r.~ ~ lv ~ Date 11-14-- 2.6.2 The Architect shall provide detailed administration of a oZ the contract for construction as set forth below and in the edition of AIA document A201, General Conditions of the Contract for Con- struction, current as of the date of this Agreement, unless other- wise provided in this Agreement. - 2.6.3 Construction Phase duties,. responsibilities and limita- tions written Architect shall agreement nof the ownercand,Archi- extended authority without the or of tect. 2.6.4 The Architect shall be a representative of and shall advise and consult with the Owner (1) during construction, and (2) at the Owner's direction from time to time during the correction, or warranty period described in the Contract for Construction. The Architect behalf of the extent provided in this Agreement nlessotherwisewmodified to the by written instrument. 2.6.5 The Architect shall inspect the construction site at least one time a week, or at appropriate intervals to the stage of construction, to become familiar with the progress and quality of be in t Work in a manner completed t that ethenWork twh nocompletednwill performed accordance with the Contract Documents. Architect shall provide owner a written report subsequent to each on-site visit, On the basis of on-site observations as an architect, the Architect shall keep the owner informed of the progress and quality of the Work, and shall exercise the utmost care and diligence in discovering and promptly reporting to the Owner any defects or deficiencies in the work of Contractor or any subcontractors. The Architect represents that will he exercise of these services as is cars, ordinarily n provided diligence in the by professions under similar circumstances. Any defective designs or to the owner. be Owner's corrected t by nthe Architect at noh Architect will approval, acceptance, use of or payment for all or any part of the Architect's the Architect's hereunder obligations h or the eOwnere Owner's way alter rights here- under. 2.6.6 The Architect shall not have control over or charge of and shall not be responsible for construction means, methods, tech- niques, sequences or procedures, or for safety precautions and pro- grams in connection with the Work. The Architect shall not be responsible for the Contractor's schedules or failure to carry out the Work in accordance with the Contract Documents except insofar as such failure may result from Architect's negligent acts or omis- sions. The Architect shall not have control over or charge of acts or omissions o the Contractor, Subcontractors, or employees, or of any other persons performing portions their of thenWork. PAGE 4 e x f e gendaNo agenda tem__~_~ G 2.6.7 The Architect shall at all times have accessA9the work -99 wherever it is in preparation or progress. 2.6.8 Except as may otherwise be provided in the Contract Documents or when direct communications have been specially author- ized, the owner and Contractor shall communicate through the Archi- tect. Communications by and with the"Arctilteet's consultants shall be through the Architect. 2.6.9 Based on the Architect's observations at the site of the work and evaluations of the Contractor's Applications for Payment, the Architect shall review and certify the amounts due the Contrac- tor. 2.6.10 The Architect's certification for payment shall consti- tute a representation to the Owner, based on the Architect's obser- vations at the site as provided in subparagraph 2.6.5 and on the data comprising the Contractor's Application for Payment, that the Work has progressed to the point indicated and that the quality of the Work is in accordance with the Contract Documents, The fore- going representations are subject to minor deviations from the con- tract Documents correctable prior to completion and to specific qualifications expressed by the Architect. The issuance of a Certificate for Payment shall further constitute a representation that the Contractor is entitled to payment in the amount certified. However, the issuance of a Certificate for Payment shall not be a representation that the Architect has (1) reviewed construction means, methods, techniques, sequences or procedures, or (2) ascertained how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. 2.6.11 The Architect shall have the responsibility and author- ity to reject Work which does not conform to the Contract Docu- ments. Whenever the Architect considers it necessary or advisable for implementation of the intent of the Contract Documents, the Architect will have authority to require additional inspection or testing of the Work in accordance with the provisions of the Con- tract Documents, whether or not such Work is fabricated, installed or completed. However, neither this authority of the Architect nor a decision made in good faith either to exercise or not exercise such authority shall give rise to a duty or responsibility of the Architect to the Contractor, Subcontractors, material and equipment suppliers, their agents or employees or other persons performing portions of the Work. 2.6.12 The Architect shall review and approve or take other appropriate action upon Contractor's submittals such as Shop Draw- ings, Product Data and Samples for the purpose of (1) determining compliance with applicable laws, statutes, ordinances and codes; and (2) determining whether or not'the Work, when completed, will be in compliance with the requirements of the Contract Documents. The Architect shall act with such reasonable promptness to cause no delay in the Work or in the construction of the owner or of sepa- PAGE 5 AgWaNo Agend0 n,_&~ Lyle - /G - .9 rate contractors, while allowing sufficient time in the Architect's professional judgment to permit adequite -review.-Review of such v submittals is not conducted for, the ppr ose of determining the accuracy and completeness of other detail.; such as dimensions and quantities or for substantiating instructions for installation or performance of equipment or systems designed by the Contractor, all of which remain the responsibility of the Contractor to the extent recniired by the Contract Documents. The Architect's review shall no'_ constitute approval of safety precautions or, unless otherwise specifically stated by the Architect, of construction means, meth- ods, techniques, sequences or procedures. The Architect's approval of a specific item shall not indicate approval of an assembly of which the item is a component. When professional certification of performance characteristics of materials, systems or equipment is required by the Contract Documents, the Architect shall be entitled to rely upon such certification to establish that the materials, systems or equipment will meet the performance criteria required by the Contract Documents. 2.6.13 The Architect shall prepare Change Orders and Construc- tion Change Directives, with supporting documentation and data if deemed necessary by the Architect as provided in Subparagraphs 3.1.1 and 3.3,3, for the Owner's approval and execution in accor- dance with the Contract Documents, and may authorize minor changes in the Work not involving an adjustment in the Contract Sum or an extension of the Contract Time which are not inconsistent with the intent of the Contract Documents. 2.6.14 On behalf of the owner, the Architect shall conduct inspections to determine the dates of Substantial Completion and Final Completion, and shall issue Certificates of Substantial and Final Completion. The Architect will receive and review written guarantees and related documents required by the contract for Construction to be assembled by the Contractor and shall issue a final certificate for Payment upon compliance with the requirements of the Contract Documents. i 2.6.15 The Architect shall interpret and provide recommenda- tions on matters concerning performance of the Owner and Contractor under the requirements of the Contract Documents on written request of either the owner or Contractor. The Architect's response to such requests shall be made with reasonable promptness and within any time limits agreed upon. 2.6.16 Interpretations and decisions of the Architect shall be consistent with the intent of and reasonably inferable from the Contract Documents and shall be in writing or in the form of draw- ings. When making such interpretations and initial decisions, the Architect shall endeavor to secure faithful performance by both Owner and Contractor, and shall not be liable for results or interpretations or decisions so rendered in good faith in accor- PAGE 6 t ~gentla►tio ,_4 agentlai~em~.~ Nis /41 dance with all the provisions, of this Agreement and in the absence of negligence. tom...-.......-........-.. 2.6.17 The Architect shall render written decisions within a reasonable time on all claims, disputes-or other matters in ques- tion between the owner and Contractor relating to the execution or progress of the Work as provided in the Contract Documents. 2.6.18 The Architect (1) shall render services under the Agreement in accordance with the usual professional standards followed by architects in the Dallas-Fort Worth metroplex area; and (2) by acknowledging payment by the Owner of any fees due, shall not be released from any rights the owner may have under the Agreement or diminish any of the Architect's obligations thereun- der. The owner acknowledges that the existing condition of the MLK Center has humidity and drainage problems and agrees that Architect is responsible only for work performed under this Agreement and j liable for damages caused as a direct result of defective design work under this contract. 2.6.19 The Architect shall provide the Owner with one (1) set of reproducible prints showing all significant changes to the Con- struction Documents during the construction Phase and shall also provide the owner with one (1) set of reproducible as-built Drawings for the Owner's file. ARTICLE 3 ADDITIONAL SERVICES 3.1 GENERAL 3.1.1 The services described in this Article 3 are not includ- ed in Basic services unless so identified in Article 11, and they shall be paid for by the owner as provided in this Agreement, in addition to the compensation for Basic Services. The services described under Paragraphs 3.2 and 3.4 shall only be provided if authorized or confirmed in writing by the Owner. If services de- scribed under Contingent Additional Services in Paragraph 3.3 are required due to circumstances beyond the Architect's control, the Architect shall notify the owner prior to commencing such services. If the Owner deems that such services described under Paragraph 3.3 are not required, the Owner shall give prompt written notice to the Architect. If the Owner indicates in writing that all or part of such Contingent Additional Services are not required, the Architect shall have no obligation to provide those services, owner will be responsible for compensating the Architect for Contingent Addition- al Services only if they are not required due to the negligence or fault of Architect. PACE 7 T agenda No 9, -os~3 Apida femme,.~C4 Rate - 3.2 PROJECT REPRESENTATION BEYOND BASIC SERVICES 11°?A 3.2.1 If more extensive representation at the site than is described in Subparait&7p~!2.6.5-is--required, the Architect shall provide one or more Project„Representatives to assist in carrying out such additional on-site responsibilities. 3.2.2 Project Representatives shall be selected, employed and directed by the Architect, and the Architect shall be compensated therefor as agreed by the owner and Architect. The duties, respon- sibilities and limitations of authority of Project Representatives shall be as described in the edition of AIA Document B352 current as of the date of this Agreement, unless otherwise agreed. 3.3 CONTINGENT ADDITIONAL SERVICES 3.3.1 Making material revisions in Drawings, Specifications or other documents when such revisions are: 1. inconsistent with approvals or instructions previously given by the Owner, including revisions made necessary by adjustments in the Owner's program or Project bud- get; 2, required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such docu- ments; or 3. due to changes required as a result of the owner's failure to render decision in a timely manner. 3.3.2 Providing services required because of significant changes in the Project including, but not limited to, size, qual- ity, complexity, the owner's schedule, or the method of bidding and contracting for construction, except for services required under subparagraph 2.5.2. 3.3.3 Preparing Drawings, specifications and other documenta- tion and supporting data, and providing other services it Connec- tion with Change Orders and Construction Change Directiv. 3.3.4 Providing consultation concerning replacement of work damaged by fire or other cause during construction, and furnishing services required in connection with the replacement of such Work. 3.3.5 Providing services made necessary by the default of the Contractor, by major defects or deficiencies in the Work of the Contractor, or by failure of performance of either the Owner or Contractor under the Contract for Construction. I PAGE 8 i 1 Uganda No __93__ r o!13__ Ageida Date_ 3.3.6 Providing services in evaluating an extensive number of /O? claims submitted by the Contractor or others in connection with the Work. 3.3.7 Providing services in connection with a public hearing, arbitration proceeding or legal proceeding except where the Archi- tect is party thereto, 3.3.8 Preparing documents for alternate, separate or sequen- tial bids or providing services in connection with bidding or con- struction prior to the completion of the Construction Documents Phase. 3.4 OPTIONAL ADDITIONAL SERVICES 3.4.1 Providing financial feasibility or other special stud- ies. 3.4.7 Providing planning surveys, site evaluations or compara- tive studies of prospective sites. 3.4.3 Providing special surveys, environmental studies and sub- missions required for approvals of governmental authorities or others having jurisdiction over the Project, 3.4.4 Providing services relative to future facilities, sys- tems and equipment. 3.4.5 Providing services to investigate existing conditions or facilities or to make measured drawings thereof. 3.4.6 Providing services to verify the accuracy of drawings or other information furnished by the Owner, 3.4.7 Providing coordination of construction performed by sep- arate contractors or by the Owner's own forces and coordination of services required in connection with construction performed and equipment supplied by the owner. 3.4.8 Providing services in connection with the work of a con- struction manager or separate consultants retained by the owner. 34.9 Providing detailed quantity surveys or inventories of material, equipment and labor. 3.4.10 Providing analyses of owning and operating costs, 3.4,11 equipments or Making investigations, detailed nappraisals mofe existing facilities. PACE 9 i Agenda No .93.~Q -~3 Ageadaltem~~. Rate q.~ 3.4.12 Providing assistance in the utilization of equipme_n7t, , systems such as testing, adjusting and balancing, preparation of operation and maintenance manuals, trgJning personnel for operation and maintenance and consultation-during operation. 3.4.13 Providing interior design and similar services required for or in connection With the selection, procurement or installa- tion of furniture, furnishings and related equipment. 3.4.14 Providing services other than as provided in section 2.6.4, after issuance to the owner of the final Certificate for Payment and expiration of the Warranty period of the Contract for Construction. 3.4.15 Providing services of consultants for ether than archi- tectural, structural, mechanical and electrical engineering por- tions of the Project provided as a part of Basic services. 3.4.16 Providing any other services not otherwise included in this Agreement or not customarily furnished in accordance with gen- erally accepted architectural practice. 364.17 Preparing a sat of reproducible record drawings showing significant changes in the Work made during construction based on marked-up prints, drawings and other data furnished by the Contrac- tor to the Architect. (This is for drawings prepared in addition to those specified in Section 2.6.19.) ARTICLE 4 OWNER'S RESPONSIBILITIES 4.1 The Owr+er shall consult with the Architect regarding re- quirements for the Project, including (1) the Owner's objectives, (2) schedule and design constraints and criteria, including space requirements and relationships, flexibility, expendability, special equipment, systems and site requirements, as more specifically described in Paragraph 2.2.1. 4.2 The Owner shall establish and update an overall budget for the Project, including the Construction Cost, the owner's other costs and reasonable contingencies related to all of these costs. 4.3 If requested by the Architect, the Owner shall furnish evidence that financial arrangements have been made to fulfill the Owner's obligations under this Agreement. 4.4 The owner shall designate a representative authorized to act on the owner's behalf with respect to the Project. The Owner or such authorized representative shall. render decisions in a timo- ly manner pertaining to documents submitted by the Architect in PAGE 10 i 4gennNo. 4~3 Agenda item R_~- Jett _ G -93 order to avoid unreasonable delay in the orderly and sequential progress of the Architect's services. ^ 4.5 The Owner shall furnish surveys d®scribing physical char- acteristics, legal limitations and utility locations for the site of the Project, and a written legal description of the site. The surveys and legal information shall include, as applicable, grades and lines of streets, alleys, pavements and adjoining property and structures; adjacent drainage; rights-of-way, restrictions, ease- ments, encroachments, zoning, deed restrictions, boundaries and contours of the site; locations, dimensions and necessary data pertaining to existing buildings, other improvements and trees; and information concerning available utility services and lines, both public and private, above and below grade, including inverts and depths. All the information on the survey shall be referenced to a project benchmark. 4.6 The Owner shall furnish the services of geotechnical engineers when such services are requested by the Architect. Such services may include but are not limited to test borings, test pits, determinations of soil bearing values, percolation tests, evaluations of hazardous materials, ground corrosion and resistivi- ty tests, including necessary operations for anticipating sub-soil conditions, with reports and appropriate professional recommenda- tions. 4.6.1 The Owner shall furnish the services of other consul- tants when such services are reasonably required by the scope of the Project and are requested by the Architect and are not retained by the Architect as part of its Basic Services. 4.7 The owner shall furnish structural, mechanical, chemi- cal, air and water pollution tests, tests of hazardous materials, end other laboratory and environmental tests, inspections and reports required by law or the contract Documents. 4.8 The Owner shall furnish all legal, accounting and insur- ance counseling services as may be necessary at any time for the Project, including auditing services the Owner may require to verify the Contractor's Applications for Payment or to ascertain how or for what purposes the Contractor has used the money paid by or on behalf of the owner. 4.9 The services, information, surveys and reports required by Paragraphs 4.5 through 4.8 shall be furnished at the Owner's ex- pense, and the Architect shall be entitled to rely upon the accur- acy and completeness thereof in the absence of any negligence on the part of the Architect. " 4.10 The Owner shall give prompt written notice to the Archi- tect if the owner becomes aware of any fault or defect in the Pro- ject or nonconformance with the Contract Documents. PAGE 11 r 4 ~gendaNo. 93_~-•3 Agerdaltem tloC Date _ 11 9J 02 4.11 Architect shall propose language for certificates or cer- O tifications to be requested of the Architect or Architect's consul- tants and shall submit such to the Owner for review and approval at least fourteen (14) days prior to execution. 'The Owner agrees not to request certifications that would require knowledge or services beyond the scope of this Agreement. ARTICLE 5 CONSTRUCTION COST 5.1 DEFINITION 5.1.1 The Construction Cost shall be the total cost or esti- mated cost to the Owner of all elerents of the Project designed or specified by the Architect. 5.1.2 The Construction Cost shall includ& the cost at current market rates of labor and materials furnished by the owner and equipment designed, specified, selected or specially provided for by the Architect, plus a reasonable allowance for the Contractor's overhead and profit. In addition, a reasonable allowance for con- tingencies shall be included for market conditions at the time of bidding and for changes in the work during construction. 5.1.3 Construction Cost does not include the compensation of the Architect and Architect's consultants, the costs of the land, rights-of-way, financing or other costs which are the responsibili- ty of the owner as provided in Article 4. 5.2 RESPONSIBILITY FOR CONSTRUCTION COST 5.2.1 Evaluations of the owner's Project budget, preliminary estimates of Construction cost and detailed estimates of Construc- tion Cost prepared by the Architect represent the Architect's best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect nor the owner has control over the cost of labor, materials or equipment, over the Contractor's methods of determining bid prices, or over competitive bidding or market conditions. Accordingly, the Architect cannot and does not warrant or represent that bids will not vary from the Owner's Project budget or from any estimate of Construction cost or evaluation prepared or agreed to by the Architect. S.2.2 No fixed limit of Construction Cost shall be established as a condition of this Agreement by the furnishing, proposal or establishment of a Project budget, unless such fixed limit has been agreed upon in writing and signed by the parties thereto. If such a fixed limit has been established, the Architect shall be permit- ted to include contingencies for design, bidding and price escala- tion, to determine what materials, equipment, component systems and PAGE 12 r Agenda No. 3- 3 Agandaitem We / - types of construction are to be included in the Contract Document, to make reasonable adjustments in the scope of the Project and to include in the Contract Documents alternate bids to adjust the Construction Cost to the fixed limit. Fixed limits, if any, shall be increased in the amount of an increase in the Contract Sum occurring after execution of the Contract for Construction. 3.2.3 If the Bidding Phase has not commenced within 90 days after the Architect submits the Construction Documents to the Owner, any Project budget or fixed limit of Construction cost shall be adiusted to reflect changes in the general level of prices in the construction industry between the date of submission of the Construction Documents to the Owner and the date on which proposals are sought. ARTICLE 6 USE OF ARCHITECT'S DRAWINGS, SPECIFICATIONS AND OTHER DOCUMENTS 6.1 The Drawings, specifications and other documents prepared by the Architect for this Project are instruments of the Archi- tect's service for use solely with respect to this Project and, unless otherwise provided, the Architect shall be deemed the author of these documents and shall retain all common law, statutory and other reserved rights, including the copyright. The owner shall be permitted to retain copies, including reproducible copies, of the Architect's Drawings, Specifications and other documents for infor- mation and reference in connection with the Owner's use and occu- pancy of the Project. The Architect's Drawings, Specifications or other documents shall not be used by the Owner or others on other projects for additions to this Project or for completion of this Project by others, unless this Agreement is terminated because Architect is in default of this Agreement, at which time the documents become the property of the City of Denton. 6.2 Submission or distribution of documents to meet official regulatory requirements or for similar purposes in connection with the Project is not to be construed as publication in derogation of the Architect's reserved rights. ARTICLE 7 TERMINATION, SUSPENSION OR ABANDGNMENT 7.1 Architect may terminate this Agreement upon not less than thirty days written notice should the Owner fail substantially to perform in accordance with the terms of this Agreement through no fault of the Architect. Owner may terminate this Agreement or any phase thereof upon thirty (30) days prior written notice to the 1rchitect with the understanding that immediately upon receipt of such notice, all work and labor being performed under the Agreement PAGE 13 shall cease immediately. Before the end of the tti1Y`ty -(30))"d__ eriod, Architect shall invoice the Owner for all work it ~7 P performed prior to the receipt of such notice. No amount shall be due for lost or anticipated profits. All plans, field surveys, and other data related to the Project shall become property of the owner upon termination of the Agreement and shall be promptly delivered to the Owner in a reasonably organized form. Should Owner subsequently contract with a new architect for continuation of services on the Project, Architect shall cooperate in providing information. 7.2 If the Project is suspended by the Owner for more than 30 consecutive days, the Architect shall be compensated for services performed prior to notice of such suspension. When the Project is resumed, the Architect's compensation shall be equitably adjusted to provide for expenses incurred in the interruption and resumption of the Architect's services. 7.3 This Agreement may be terminated by the owner upon not less than seven days written notice to the Architect in the event that the Project is permanently abandoned. If the Project is abandoned by the owner for more than 90 consecutive days, the Architect or the Owner may terminate this Agreement by giving written notice. 7.4 Failure of the Owner to make payments to the Architect in accordance with this Agreement shall be considered substantial non- performance and cause for termination. 7.S If the Owner fails to make payment to Architect within thirty (30) days of receipt of a statement for services properly performed, the Architect may, upon seven days written notice to the Owner, suspend performance of services under this Agreement. Un- less Architect receives payment in full within seven (7) days of the date of the notice, the suspension shall take effect without further notice. In the event of a suspension of services under this section, the Architect shall have no liability to the Owner for delay or damage caused the Owner because of such suspension of services. 7.6 In the event of termination not the fault of the Archi- tect, the Architect shall be compensated for services properly performed prior to termination. ARTICLE 6 MISCELLANEOUS FROVISION8 8.1 This Agreement shall be governed by the laws of the State of Texas. PAGE 14 e F f i nQi~ `r-/ .2rZ 8.2 Terms in this Agreement shall-have t e same meaning as r/ Agreement. ontract for l~/yf those ructionD current as oaf tGeneral he date of Conditions Const 6.3 The Owner and Architect, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representatives of such other party with respect all covenants of this eAgreement. cnsentArchitect of shall assign this Agreement without the written the other. 8.4 This Agreement represents the entire and integrated agree- ment between the owner and Architect and supersedes all prior negotiations, representations or agreements, weither ritten writte t n or oral. This Agreement may be amended only by insument signed by both Owner and Architect. 8.5 Nothing contained in this Agreement shall create a con- tractual tpC cause ion in favor of a third party against either the owner or Architect. 8.6 Unless otherwise provided in this Agreement, the Architect and Architect's consultants shall have no responsibility for the discovery, presence, handling, removal or disposal of or exposure of persons to hazardous materials in any form at the Project site, including but not limited for aotherotoxicasbestos substances,lc provided, chlorinated biphenyl (PCB) however, Architect shall have the responsibility to and shall reort to th Owner the location of any architect ofe similar skill and expertise hazardous s have noticed. an 8.7 Upon receipt of prior written approval of owner, the Architect shall have the right to include representations of athe nd design of the Project, including photographs of the exteri interior, among the Architect's promotional and professional materials. The Architect's materials shall not include the owner's confidential or proprietary information if the Owner has previously advised the Architect in writing of the specific information con- sidered by the Owner to be confidential or proprietary. The owner mathe terials Architect for the Project. shall structiion vsign and in the promotional for ARTICLE 9 PAYHENTS TO THE ARCHITECT 9.1 DIRECT PERSONNEL EXPENSE 9.1.1 Direct Personnel Fxpense is defined as the direct sala- and the ries of the Architect's personnel engaged on the customary contributions portion of the cost of their mandatory PAGE 15 a f k D , and benefits related thereto, such as employment taxes and other/9 statutory employee benefits, insurance, sick leave, holidays, vacations, pensions and similar contributions and benefits. 9.2 REIMBURSABLE EXPENSES 9.2.1 Reimbursable Expenses are in addition to compensation for Basic and Additional Services and include expenses incurred by the Architect ani Architect's employees and consultants in the interest of the Project, as identified in the following Clauses. 9.2.1.1 Expense of transportation in connection with the Pro- ject; expenses in connection with authorized out-of-town travel; long-distance communications; and fees paid for securing approval of authorities having jurisdiction over the Project. 9.2.1.2 Expense of reproductions (except the reproduction of the sets of documents referenced in Subparagraph 2.6.19), postage and handling of Drawings, Specifications and other documents. 9.2.1.3 If authorized in advance by the Owner, expense of overtime work requiring higher than regular rates. 9.2.1.4 Exrense of renderings, models and mock-ups requested by the owner. 9.2.1.5 Expense of computer-aided design and drafting equipment time when used in connection with the Project. 9.3 PAYMENTS ON ACCOUNT OF BASIC SERVICES 9.3.1 Payments for Easic Services shall be made monthly and, where applicable, shall be in proportion to services performed within erah phase of service, on the basis set forth in Subpara- graph 10.2.2. 9.3.2 If and to the extent that the timt, initially established in Subparagraph 10.4.1 of this Agreement is exceeded or extended through no fault of the Architect, compensation for any services rendered during the additional period of time shall be computed in the manes set forth in Subparagraph 10.2.3. 9.3.3 when compensation is based on a percentage of Con- struction Cost and any portions of the Project are deleted or otherwise not constructed, compensation for those portions of the Project shall be payable to the extent services are performed on those portions, in accordance with the schedule set forth in Sub- paragraph 10.2.2 based on (1) the lowest bona fide bid or (2) if no such bid or proposal is received, the most recent preliminary estimate of Construction Cost or detailed estimate of Construction Cost for such portions of the Project. PAGE 16 a 9. 4 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES .LL.-J.G, -?J) s'o?a a,0 944.1 Payments on account of the Architect's Additional er- vices and for Reimbursable Expenses shall be made monthly upon presentation of the Architect's statement of services rendered or expenses incurred. 9.5 PAYMENTS WITHHELD 9.5.1 No deductions shall be made from the Architect's com- pensation on account of penalty, liquidated damages or other sums withheld from payments to contractors, or on account of the cost of changes in the Work other than those for which the Architect is responsible. 9.6 ARCHITECT'S ACCOUNTING RECORDS 9.6.1 Architect shall make available to owner or owner's authorized representative records of Reimbursable Expenses and expenses pertaining to Additional Services and services performed on the basis of a multiple of Direct Personnel Expense for inspec- tion and copying during regular business hours for three years rtter the date of the final Certificate of Payment, or until any l.Ligation related to the Project is final, whichever date is later. ARTICLE SO BASIS OF COMPENSATION The Owner shall compensate the Architect as follows: 10.1 BASIC COMPENSATION 10.i.1 FOR BASIC SERVICES, as described in Article 2, and any other services included in Article 11 as part of Basic Services, Basic Compensation shall be $9,950. 10.1.2 Progress payments for Basic Services in each phase shall total the following percentages of the total Basic Compen- sation payablet o Design Phase 104 o Construction Documents Phase 554 o Bidding Phase 104 o Construction Phase 254 o Total Basic Compensation 1004 These fees are based on preparing drawings for a projected construction budget of $118,050. PAGE 17 4 a 7 10.2 COMPENSATION FOR ADDITIONAL SERVICES a 2 10.2.1 FOR PROJECT REPRESENTATION BEYOND BASIC SERVICES, as described in Paragraph 3.2, compensation shall be computed as follows: on an hourly rate basis, based on Article 10,2.2. 10.2.2 FOR ADDITIONAL SERVICES OF THE ARCHITECT, as described in Articles 3 and 11, other than (1) Additional Project Representa- tion, as described in Paragraph 3.2, and (2) services included in Article 11 as part of Additional Services, but excluding services of consultants, compensation shall be computed as follows: Principals $ 95 per hour Associates 55 per hour Technical Staff 35 per hour Clerical Staff 35 per hour 10.2.3 FOR ADDITIONAL SERVICES OF CONSULTANTS, including additional structural, mechanical and electrical engineering ser- vices and those provided under Subparagraph 3.4.16 or identified in Article 11 as part of Additional Services, a multiple of 1.1 times the amounts billed to the Architect for such services. 10.3 REIMBURSABLE EXPENSES 10.3.1 FOR REIMBURSABLE EXPENSES, as described in Paragraph 3.2, and any other items included in Article 11 as Reimbursable Expenses, a multiple of 1.1 times the expenses incurred by the Architect, the Architect's employees and consultants in the interest of the Project. 10.4 ADDITIONAL PROVISIONS 10.4.1 IF THE BASIC SERVICES covered by this agreement have not been completed within 12 months of the date of execution hereof, through no fault of the Architect, extension of the Architect's services beyond that time shall be compensated as provided in Subparagraphs 9.3.3 and 10.2.2. 10.4.2 Payments are due and payable forty-five (45) days from the date of the Architect's invoice. Amounts for services properly performed which remain unpaid forty-five (45) days after the in- voice date shall bear interest at the rate of one (1%) percent per month. ARTICLE. 11 OTHER CONDITIONS OR SERVICES li.i Architeot shall maintain, at no expense to Owner, a pro- fessional liability (errors and omissions) insurance policy placed PAGE 18 ) oi- with a company rated at least B+/X by Best's .Key_ RA~~nq_G ides authorized to do business in Texas, in an amount not less than one a~a~ million dollars ($1,000,000). Such policy shall name the owner as additional insured and shall require the giving of written notice to Owner at least thirty days prior to cancellation, non-renewal or material modification of any policies, evidenced by return receipt of United States Certified Mail. Architect shall furnish owner with copies of said policies or certificates evidencing such coverage. 11.2 Architect agrees to indemnify, hold harmless, and defend the City, at Architect's cost, its officers, agents, and employees from and against any and all claims or suits for injuries, damages, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Architect of those ser- vices contemplated by this Agreement, based upon allegations of negligent acts or omissions of Architect, its officers, agents, employees, consultants and subcontractors. This Agreement entered into as of the day and year first written above, CITY OF DENTON, TEXAS, CORGAN ARCHITECTS OWNER ARCHITECT BYE BY: . PAGE 19 CITY- --COUNCI ti n s CGC y E:\WDOCS\ORD\TEEM.O ApeedaNo Ageo~aite Date - ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON RELATING TO "ADMINISTRATION" BY REVISING ARTICLE III ENTITLED BOARDS, COMMISSIONS AND COMMITTEES BY AMENDING SECTION 2- 65 ENTITLED "TERM OF OFFICE" TO PROVIDE FOR A WAITING PERIOD FOR REAPPOINTMENT; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Administration Chapter of the Code of Ordinances of the City of Denton is hereby amended by revising Article III thereof by amending Section 2-65 so that hereafter it shall be and read as follows: Boo. 2-65. Term of Office. No board or commission member shall be eligible for appointment to a Board or commission for more than three (3) consecutive terms on such board or commission. A board or commission member who has served three (3) consecutive terms shall not be eligible for reappointment to that same board or commission for a period of one year. SECTION LIB That this ordinance shall become effective immed- iately upon its passage and approval. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR ATTEST; JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORMS DEBRA A. DRAYOVITCH, CITY ATTORNEY BYI y .N E1\4PD0C5\0A0\1E1M.0 U ORDINANCE NO, a ~a AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON RELATING TO "ADMINISTRATION" BY REVISING ARTICLE III ENTITLED BOARDS, COMMISSIONS AND COMMITTEES BY AMENDING SECTION 2- 65 ENTITLED "TERM OF OFFICE" TO PROVIDE FOR A WAITING PERIOD FOR REAPPOINTMENT; AND PROVIDING FOR AN EFFECTIVE DATE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; SECTION 1. That the Administration Chapter of the Code of Ordinances of the City of Denton is hereby amended by revising Article III thereof by amending Section 2-65 so that hereafter it shall be and read as follows: Beo. 2-65. Teri of Office. No board or commission member shall be eligible for appointment to a Board or Commission for more than three (3) consecutive terms on such board or commission. A board or commission member who has served three (3) consecutive terms shall not be eligible for reappointment to any board or commission for a period of one year. SECTION II., That this ordinance shall become eifective immed- iatoly upon its passage and approval. Pif4ED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: A~A CITY -COUNCI ~p0000CC~ o a a O M y~~r~`~) P C AgendeNo.1~ Agendalte -S` DATE: Noveemb Y 16, 1993 J 0 CITY COUNCIL REPORT To: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: ORDINANCE APPROVING THE TAX ROLL FOR 1993 RECOMMENDATION: Staff recommends approving the 1993 tax roll. SUMMARY: The approval of the appraisal roll and the tax roll is an annual process required by the Texas Property Tax Board. These steps are required to make the tax roll legal. In August, the certified appraisal roll was approved. Since that time, we developed the tax roll by using the 1993 tax rate to calculate the amount of tax due for each account on the roll. For your review the tax roll was placed in the City Manager's Conference room on November 10, 1993. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: All the General Fund departments that are supported by property tax revenue will be affected by the approval of the attached ordinance. FISCAL IMPACT: The total tax levy on the 1993 roll is $130470,376.30. We anticipate collecting at least ninety-seven point five (97.54) percent of this amount. These funds will be j used to cover maintenance and operating expenses as well as our debt obligation. Resp.4e sub i ed. Pre ared y Lloy rell, City Ma ager Harla L. erson Director reasury Operations Approved, j J Y F. McGrane E butive Director of Finance AFF007SE t 1:%WPD0C$\0aDkrui.n0c ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE 1993 TAX ROLLS; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Council hereby approves the 1993 Tax Rolls of the City of Denton, Texas in the amount of $13,470,376.30 based on the Certified Appraisal Roll as approved by the Appraisal Reviev Board of the Denton Central Appraisal District. SECTION II. That this ordinance shall become effective immed- iately upon its passage and approval. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: ' C I T Y "COUNCI t. .11, IT TT occ z I 4QiRdlND. -6543 4 dalle CITY COUNCIL REPORT FORMAT Date TOi Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Interlocal Cooperation Agreement Revision RE CO HgM N ON Approve the resolution which adopts an interlocal agreement with Denton County for shared road maintenance. Denton County has approved. SUMMARY: The shared roads have been a major negat!ve issue to both entities (city and county) as maintenance responsibilities were negotiated ineffectively. Citizens requests for maintenance on these roads were ignored as the responsibilities were not clear and neglect has occurred. BACKGROUND: Most the roads effected were part of annexations by the City of Denton in the 1970's and 1980'9. Establishing a boundary down the road centerline was used for division of property. Maintenance procedures are ineffective when working on 1/2 of a country rural) type roadway or on a short section between sections of the other entities responsibility. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Street Maintenance, Denton County Public Works, Engineering and Transportation Department, Citizens that live and work on the perimeter of Denton. FISCA!, IMPACT: Difficult to cost out at this time. Savings in administration should quickly result. Maintenance costs will most likely rise as these roads are scheduled into programs instead of being avoided. "0 RESP LLY SU M E Lloy Harre 1 City Manager Prepared by: Ll!Q~C Jerr C ark Dire r of En neerinq & Transportation Approved. Rick Svhela Deputy City Manager AEEOOOCA/3 ~I CITY Of DENTON, TEXAS MUNICIPAL BULL DING / 215 E. McKINNEY / DENTON, TEXAS 76201 MEMORANDUM A~-reatio. 9 _ ;ego 5 # DATEt November B, 1993 T0: Rich Svehle, Deputy City Manager n ,gyp FROMs Jerry Clark, Director of Engineering & Transportation oC ~(/iT SUBJECTS Interlocal Cooperation Agreement Revioion We have worked with the County toward a cooperative effort to insure road systems have efficient maintenance responsibility divisions. Past annexations by the city utilized survey lines and deed descriptions which followed the center of existing road. These annexations created roads which are half within the city and half in the unincorporated county. Maintenance along these roads has been neglected due to each entity pushing the responsibility on the other. An agreement was previously approved by the City Council on October 5, 1993. Since that time the county questioned and had some concerns with the road footage. Jim christal Road was calculated from I.H. 35. They felt, since the portion of the road from I.H. 35 to Masch Branch (8000 ft.) was entirely within the city limits it should not be counted towards the city share of roads milage. It was determined the sections which are all city or county should be included with the assignment of roads (indicated by a solid line on map - exhibit "B" i.e. Robinson, Allred, John Paine, Egan roads, etc) to make maintenance divisions clean and efficient. The proposed Interlocal Cooperation Agreement gives each entity approximately the same amount of the shared roads. Michael A. Jones, P.E., Denton County, Director of Public Works and his staff has worked with us to develop this current version of the agreement. Mr. Jones made a positive recommendation to the County Commissioners and at their October 19, 1993 meeting approved the agreement. After the minor adjustments and addressing the above referenced segments that could have created future questions, the proposed agreement has taken the factors into account and both parties, City and County Maintenance Divisions, feel this agreement ie fair and equitable. We are making a positive recommendation for this revised agreement. Je ry Is Die or f E Sneering & Transportation AEE002DA 8171566.8200 D/FW METRO 434.2529 It WPWS MIESMADMA IN. I RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT WITH DENTON COUNTY FOR SHARED ROADWAY MAIN- TENANCE FOR CITY OF DENTON AND DENTON COUNTY ROADS; REPEALING RESOLUTION 93-058; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, there are a number of roads and streets along the perimeter of the boundaries of Denton County and the City of Denton; and WHEREAS, tl,.e County and City desire to establish maintenance responsibilities on certain perimeter roads and streets to more effectively and efficiently keep said roads in proper state or repair; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I That the City Manager is authorized to execute an Interlocal Cooperation Agreement on behalf of the City of Denton, Texas, with Denton County for shared roadway maintenance for city of Denton and Denton County roads, a copy of which is attached hereto and incorporated by reference herein. 5=ZLQN II. That Resolution No. 93-058 is hereby repealed and the city secretary is hereby directed to inscribe evidence of such repeal on the face of Resolution No. 93-058. SECTION III That this resolution shall become effective im- mediately upon its passage and approval. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITC , CITY ATTORNEY 1 y~ BY: THE STATE OF TEXAS Q ~JA f COUNTY OF DENTON • DENTON COUNTY, M EXAS INTERLOCAL COOPERATION AGREEMENT THIS AGREEMENT is made and entered into this _ day of 1993, by and between Denton County, a political subdivision of the State of Texas, hereinafter referred to as the "County", and the City of Denton a political subdivision/ entity located within Denton County, Texas, duly organized and authorized under the state of Texas, hereinafter referred to as the "City". WHEREAS, There are a number of roads and streets along the perimeter of the boundaries of Denton County and the City of Denton which are partially in unincorporated Denton County and partially in the incorporated limits of the city; and WHEREAS, There has been uncertainty in the past concerning maintenance responsibility for several of these perimeter roads; and WHEREAS, The County and city desire to eliminate, to the greatest extent possible, any confusion associated with maintenance responsibilities on said roads; and WHEREAS, The County and City desire to establish maintenance responsibilities on certain perimeter roads/streets to more effectively and efficiently keep sal.d roads in a proper state of repair. Agenda No AgenRaitem aLl"74 NOW THEREFORE, THIS AaREEXENT is hereby made andtente edlinto,--- ~ by County and City pursuant to V.T.C.A.-Coverriiaent.-Code, Chapter 791; V.T.C.S. Art 6702-1, Section 2.010; and V.T.C.S. Art 1105b, upon and for the mutual consideration stated herein: 1. For the purposes and consideration herein stated, the project is described as follows: SHARED ROADWAY MAINTENANCE FOR CITY OF DENTON AND DENTON COUNTY ROADS II. The County and City assume maintenance/reconstruction responsibilities for the roads described on the list attached hereto as EXHIBIT "A" and identified by map attached hereto as EXHIBIT "B". This Interlocal Cooperation Agreement will be automatically renewed annually, at the discretion of the Denton county Commissioners Court, unless terminated under the provisions provided under Articles III or V. III. The City agrees to notify the County Public Works Department in writing, of changes made by City to its boundaries as shown on the attached map. The parties agree that in the event that roads described in "Exhibit All and shown on the map identified as "Exhibit B" are annexed by the City, the responsibility of the -2- y r Agenda No _ 23 -A46 . County for maintenance/reconstruction shall cease. Apsndallem ~S ~ Failure on the part of the City of Denton to advise the Countly~ff within ten (10) days immediately following the change or changes to its boundaries shall result in the termination of this agreement. IV. This agreement is not intended to extend the liability of the parties beyond that provided by law. Neither the city nor the County waives any immunity or defense that would otherwise be available to it against claims by third parties. V. This agreement may be terminated at any time, by either party giving sixty (60) days advance written notice to other party. VI. The undersigned officer and/or agent of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto, and each party hereby certifies to the other than any necessary resolutions extending said authority have been duly passed are now in full force and effect. .3. Agenda No Agendaitem-,..L -yA Oete EXECUTED in two (2) originals at Denton, Denton County, Texas o the day and year first written above. COUNTY CITY Denton County City of Denton 110 West Hickory 215 E. McKinney - Denton, Texas 76201 Denton, Texas 76201 BY: BY: The Honorable Jeff Moseley County Judge Acting on behalf of, and by Acting on behalf of, and the authority of the by the authority of the commissioners court of City of Denton City Council Denton County, Texas ATTEST: ATTEST: BY: BY: APPROVED/ AS TO FOR1{: APPROVED AS TO FORM: BY: ~itG~~/lLr.~ /(~7/•CC/~~~ BY: Assistant District Attornt City Attorney Denton County City of Denton AP VED S T CON E Director of Pub o s, Denton County -4- a EXHIBIT "A" ROAD MAINTENANCE ? ~A CITY OF DENTON i DENTON COUNTY 6'6 October 1993 DENTON COUNTY WILL MAINTAIN, RoaD KNM FED R4 y~ t,~ Allred Bonnie Brag, west I.H. 36M 7,623 432 Barthold Y.H. 35, west City Limits Blagg Trinity Rd, 2 xeat Ha hill . Bonnie Brag U.S. 377, north y 3,885 Brush Creek city in (to scut) 8,800 U.S. 377, east city Limits Edwards tsayhill Rd, east city Limits 2,000 John Paine I.H. 35 M, mouth City Li its 5.160 Johnson Lane John Pairs Rd, past City Limits 6,043 Trinity U.B. 380, south City Limits 2.353 10.300 47,453 CITY OF DBNTCH WILL MAIN7AINi ROJ1D au® FAON 19 Lenqt Cooper Creek Mingo Rd, north fish Trap 724 Egan J, Christal Rd, north City Limite 3,700 Farris Silver Dome Ad, north City Limits Fish Trap City Limit, east City Limits 254 Trish Trap Cooper Creek Rd, vast Foster Enay Limits 675 Mayhill Rd, goat 20962 Hickory creek P.H. 21810 Vogt City Limits 433 Jim ^hrietal Masch Branch, west F.H. 156 120980 Mauch Branch U.B. 380, north City Limits 200 Hayhill U.B. 340, south Edwards Road 3424 Nall U.S. 3800 mouth Jim Chrigtal Ad 4,672 Pookrus/Paige Swisher Rd, east City Limits 750 Robinson F.M, 2181, east Corinth City Limits 4 175 Silver Dome Farris Ad, mast City Limits Swisher Pockrue Paige Rd, south City Limits 1 6964 T 55 Underwood om Co North/South portion adjacent to Airport Springelde Rd, north City Limits 2,70C 47,352 ABR0025F/40 agenda No. Ag en ~a I tem~S..._. 7A-- }ry~a,te FAilij3r fj- y?ztL'IN(S fY.-lZfCIII I-, l 9 SHARED ROADWAY MAINTENANCE FOR CITY OF DENTONIDENTON COUNTY ROADS August, 1993 DENTON COUNTY LINEAR FEET ALLREAD ROAD 3,610 BARTHOLD ROAD 2,300 BLAGG ROAD 1,385 BONNIE BRAE 6,545 BRUSH CREEK ROAD 1,625 COOPER CREEK 724 EDWARDS ROAD 50760 FARRIS ROAD 784 FISH TRAP ROAD 829 JOHN PAINS ROAD 2,353 JOHNSON LANE 3,648 POCKRUS PAIGE 750 SILVER DOME 964 SWISHER ROAD 1,65S TRINITY ROAD 6,800 UNDERWOOD ROAD 900 TOTAL% 40,632 CITY OF DENTON LINEAR FEET EGAN ROAD 1,400 FOSTER ROAD 2,962 HICKORY CREEK ROAD 433 JIM CHRISTAL 17,800 MASCH 2RANCH 200 MAYHILL ROAD 8,924 NAIL ROAD 2,227 ROBINSON 4,175 TOM COLE 2,700 TOTALt 40,821 P,-: 'o z c~~ o y3 EXHIBIT "B" EXHIBIT "B" IS THE MAP PROVIDED TO THE COMMISSIONERS COURT AT THE OCTOBER 12, 1993 MEETING I LU. rKINI ILL- 01fJOLU04J ULL LJ+JJ J•JO IVU.UV~ G.VL MENTON COUNTY COMMISSIONERS COURT Of_fnher 19 1993 1 1~luuuulh Day Yea1 . e~..-... //-//..9~._ _ Court Order Number: a howit mot: Cn,u+lr Jud`c Jttf 111asrlrr Ahscnl _ Prnt+d present Comtnisrfoner Pri No I Cmu,airclow rd No 2 Kb k Mbrm Jo041y Jocelu Alscnt Alismt rratnl ~ rreodd Commlatanor rot No l Coalnl:u:,,r,er Pct No A Scull Annoy Ilan 11111 AMtal ~ ALeeol ` THE ORUiilt: 12.9 APPROVAL OF INTSRLOCAL COOPERhTION AGRERMT WITH THE CITY OF DMMN FOR SKARED ROADWAY HAXIMBNANCE. M01101111111tic by Secullded by CII1III(r Judge 1e1f MI)SOry Ya Nu Ye Yes Cowoflcdoner rct No I Caombliwler rcl No Klrk Mims So,wly 1oeo1M No No Yto Vu ✓ Cow+mlt.+lmkr I'cl No 3 Cmumh.rLowr rd No a &*11 Angry 0400 11lu No No f.W'r)ON CA111t11?O • U by UWWR OF 1't1Y, CoMmISSIONF.hS Couicr AYrYSrf 11 moo 110414", Cole,fy Clefk y.. and F' .01 reelo Verk of Ike kloreki, rresLliu~ <Ilf~ctr . Car,nnlsuaacrf Ca4r1 of rl,, ~ i I1pIlM CYfI1l1 y, TRtot Irl V0 AS TO 1`0101i J' fr eel l - - =CITY COUNCI ~~p444000(~~ ` 4 • • 4 4.Ul I i AQW&No~3"0X-3 Apen0alte-- D ~ oate - 3 CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8307 Office of the City Manager TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager DATES November 91 1993 SUBJECT: Resolution Expressing Support of the Ad Hoc Citizens' Sales Tax Advisory Committee's Recommendation to Adopt an Additional One Half Cent Sales Tax to Reduce the Property Tax BACXGROUND: This resolution chronicles the study of the half cent sales tax to reduce tha property tax proposal. It also expresses the City Council's support of the Ad Hoc Citizens' Sales Tax Advisory Committee's recommendation to adopt an additional one half cent sales tax to reduce the property tax. At the City Council's direction, the resolution states the City Council's pledge to thoroughly study and consider potential reductions to the Rl elRCtric rate (Lifeline rate) or other programs designed to benefit low income citizens in Denton. The resolution also outlines two roles that the Council will ask the Citizen Committee to perform. The first role is to serve as the educational committee to thoroughly present this proposal to the public and inform citizens about the proposed half cent sales tax to reduce the property tax. The second role is to work with the Finance Department to ensure that the appropriate credit for sales tax revenues are made for the corresponding property tax reductions. If the voters approve the sales tax, this committee would be charged to report annually to the City Council regarding the amount the additional half cent sales tax has reduced the property tax as part of the budget process. "Dedicated to Quatiop Senice" i Upon passage of this resolution the Ad Hoc Citizens' Sales Tax Advisory Committee would reconvene and address the first role requested by the City Council to educate the voters on this issue. Please advise if I can provide additional information. RESPECTFULLY SUBMITTEDO 1 yd V. Harrell City Manager Prepared by: CDcA~ ~-4cJ t Catherine E. Tuck Administrative Assistant 93..E-- a ~ .s a E:\6TMSIRES\SAIE S.TAX jo RESOLUTION NO. 3 ~LJ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, EXPRESSING SUPPORT OF THE AD HOC CITIZENS' SALES TAX ADVISORY COM- MITTEEBS RECOMMENDATION TO ADOPT AN ADDITIONAL ONE HALF OF ONE PERCENT SALES AND USE TAX WITHIN THE CITY TO BE USED TO REDUCE THE PROPERTY TAX RATE AT AN ELECTION TO BE HELD ON JANUARY 15, 1994; URGING ALL CITIZENS TO VOTE IN THIS ELECTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after two sessions of lobbying the Texas State Legis- lature, the Denton City Council was instrumental in securing pas- sage of legislation which allowed Denton citizens to vote on an additional one half of one percent sales and use tax to be used to reduce the property tax; and WHEREAS, the City Council appointed an Ad Hoc Blue Ribbon Citizen committee of fifteen citizens to thoroughly study this issue over a three month period; and WHEREAS, the Blue Ribbon Citizen Committee gathered informa- tion from other cities and utilized an outside economist to determine the economic effects of the proposal; and WHEREAS, the Committee overwhelmingly recommended that the city Council take advantage of this opportunity to lower the property tax rate and urged the City Council to call an election for the voters to determine this issue; and WHEREAS, the Citizen Committee stressed the importance of an intensive educational process in the community to inform the voters about this issue; and WHEREAS, several committee members also asked that the council give special consideration to low income citizens through an examinAtion of the utility rates and by studying some form of utility relief to those citizens; and WHEREAS, the City Council formally called an election for Saturday, January 15, 1994, so that the electorate can vote on whether to adopt the additional sales tax to reduce the property tax; and WHEREAS, the adoption of this additional sales tax will result in significant property tax reductions for all property owners in Denton and shift a portion of the cost of city services to non- Denton residents; and WHEREAS, as noted University of North Texas economist Dr. Bernard Weinstein cited, sales tax revenue provides a more stable, long term revenue source in the face of decreasing property values since the sales tax base is expected to grow more rapidly than the property tax base; and WHEREAS, Dr. Weinstein also determined that such a small increase in sales tax will not cause a measurable reduction in Denton retail sales; and WHEREAS, the City Council is committed to economic development and adoption of this sales tax to reduce the property tax will be an excellent marketing tool; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council of the City of Denton hereby expresses its support of the Ad Hoc Citizens' Sales Tax Advisory Committee's recommendation fof passage of the additional one half cent of one percent sales and use tax to be used to reduce the property tax rate and urge each citizen to express his or her pre- ference by voting in the election to be held on January 15, 1994. cess,Sthel City IT., That as art of Council pledg s to tthor thoroughly study annual and budget potential reductions to the RI electric rate (Lifeline rate) or other programs designed to benefit low income citizens in Denton. SECTION III That the City Council hereby invites the Ad Hoc Citizens' Sales Tax Advisory Committee to serve in the following two roles regarding this issue: A. To serve as the educational committee to thoroughly p resent this proposal to the public and inform citizens about the and proposed half cent sales tax to reduce the property tax; B. If voters approve the additional sales tax to reduce the property tax, to work with the City's Finance Department to ensure that the appropriate credit for sales tax revenues are made for the corresponding property tax reductions. This Com- mittee shall report annually to the City Council regarding the amount the additional half cent sales tax has reduced the property tax as part of the budget process at a public meeting. SECTION IV. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, MAYOR PAGE 2 r -gBndaNo Agendaltem le~ Date ATTEST: JENNIFER WALTERSo CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: I PAGE 3 =CITY ==COUNCI ~~ooooc~0 . s e ♦ ~ ~ w 1 ~ 4yV~. a'r' °0aecacccc~ ~ +yen~laNa_.~~3 Agendail CITY of DENTON, TEXAS MUNICIPAL BUILDING l DENTON, TEXAS 76201 / TELEPHONE (817) %W09 Office of the City Secretary MEMORANDUM DATEt November 9, 1993 TO: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary SUBJECT: Board/Commission Appointments The following is a list of the vacancies for the City's Boards/Commissions: Electrical Code Board - Alternate position vacant - Council Member Chew's nomination. Keeb Denton Bea++*iful Board - This Board has two vacancies with the resignation of Don Haves and J. B. Smallwood. The Hayes vacancy is Councij member* Chew's nomination and the Smallwood vacancy is Council Member Perry's nomination. u enile_Diversion mask Force - There is a vacancy left for a local c group representative. If you need any further information, please let me know. On, e a ters S etary OF4 HANDOUT TO COUNCIL - 11-16-93 city of DENTON, TEXAS PURCHASING DIOSION / 001-6 TEXAS STREET l DENTON, TEXAS 76201 M E M O R A N D U M TOr Lloyd Harrell, City Manager FROM: Tom D. Shaw, Purchasing Agent 1 DATE: November 16, 1993 SUBJECT: JANITORIAL BID #1550 j Staff has prepared the following information to answer some questions we are aware of regarding the janitorial bid recommendation. 1, The Equipment Services area has not withdrawn the request to terminate services by Brazos Contracting. After being placed on notice, cleaning improved dramatically for one day only. Currently services are not being performed at a level of satisfaction sufficient to recommend continuation. 2. At tke time the Council Report was prepared, staff had recollection of payments being held only twice. Actually there have been payments held three times for non-compliance with bid specifications. (A) Sarvice Center Hold requested) 7-2-93 Payment authorized 7-21-93 (B) Police Department Hold requested 8-10-93 Payment authorized 8-24-93 (C) Equipment Services Hold requested 9-10-93 Payment authorized 9-24-93 3. The Purchasing Office received a fax listing another reference after we received the departmental recommendation from Facility Management. Purchasing has called this reference and received a positive reference= however, this does not increase their total number of satisfa;tory i•eferences to three as required in the bid. 6171566-8311 D/FW METP0 267.0042 X MEMO - JANITORIAL BID #1550 NOVEMBER 16, 1993 PAGE 2 OF 2 4. The grand totals of each vendor's bids were not shown on the tabulation sheet. They are as follows: Pedus $89,670.60 Member's $74,230.32 Brazos $57,878.00 Britton $77,410.92 5. Victor Equipment was listed as a reference, however, when contacted by the City, they named another cleaning company as their current contractor. If you need additional information or other questions come up please let me know. dd 437.DOC I k HANDOUT TO COUNCIL - 11-16-93 M E N 0 R A N D U M TO: All Department Employees FROM: Lt. Joanie Nousewright Sgt. Loyd Burns DATE: November 15, 1991 REF: Joint Meetings of the Wellness and Employee Insurance Committees As you may know, there was a joint meeting of the Wellness and Employee Insiirancd on Friday, November 12, 1993. Due to a lack of consensus on the issues the meeting was reconvened on Monday, November 15, 1993. At the meeting on Monday, the committees considered and voted on the following options. OPTION 1: Tom Klinck proposed that if an employee refused to participate in the health assessment, the City would contribute $178.50 to the employee's, insurance premium and the employee would pay the remaining $10,00 per month. If the employee participated in the health assessment, the City would contribute the entire $188.50. If the employee is a tobacco user, the City will contribute the entire $188.50, but will give the employee an additional $10,00 "insurance supplement" if they are not a tobacco user regardless of the length of time they have not used tob°^c:o. OPTION 2: The City would contribute the entire $188.50 for every employee. The City would then make a one-time payment to the employee when the employee participated in the health assessment. This payment was estimated at around $25.00, Employees would then be told at this year's open enrollment that insurance premium differential's could be attached to the 1995 insurance premiums. This would provide employees an opportunity to stop using tobacco and the committees time to come up with fair and effective incentives. This option also separates the wellness initiatives from your insurance premiums. Betty McKean took a vote regarding these options to determine which option would be presented to the Executive Staff tomorrow, The vote was 19 for Option 1 and 8 for option 20 with your representatives voting for Option 2. Therefore, she will take option 1 to the Executive Staff. %eyeeolensuiince Loyd Burns Em~p Committee Wellness committee s W'N Denton Police Department 221 N. ELM DENTON, TEXAS 7'6201 M E M 0 R A N O U M 701 ALL DEPARTMENT EMPLOYEES FROM: Lt. Joanie Housewright DATE: November 2, 1993 REF: Employee Health Insurance open enrollment for your health insurance is fast approaching and, as you may have heard, the City of Denton has chosen to contract with Harris Methodist Health Plan rather than renew their contract with Philadelphia American (PALICO). The purpose of this memo is to give you some information about how this decision was made and information about the new health plan so you can start thinking now about what coverage will be most beneficial to your individual situation. THE BID PROCESS There were eight or nine bids submitted regarding health coverage. Two or three were "self-inaured" plans and one was Sanus. Due to the problems with these plans in the recent past, these were not considered. After that process of elimination, Harris Methodist, Aetna, Blue Cross/Blue Shield, TKL Group Pool, and PALICo were left. orlginall•/, the bid package Aetna submitted listed no guarnateed premium rate. The committee was originally told that we could not consider the Aetna plan because it would not be responsible to choose a plan with no guarantee on the premium for at'least 12 months. Later, Legal told Human Resources that it didntt matter that Aetna left the "guaranteed rate" blank because we could legally make the assumption that their guarantee met the required bid specification of 12 months. So, the committee was not really given the opportunity to consider Aetna in the recommendation as the legality came to light just before Human Iesources was to present this information and a recommendation to the Executive (e 17) 5666161 METR0154,2520 I z' r s~ Staff and the City Council. According to Human Resources, they worked up the figures for Aetna and Harris Methodist was a better overall plan with projected premium savings of approximately $200,000.00 to the employees. The bottom line is that the committee was left to choose between going with Harris Methodist or renewing with PALICO. COMPARING THE PLAN: PALICO proposed an 8.721 increase in premiums for 1991. Additionally, they proposed implementing a "gate-keeper" for specialist referrals. InstAad of simply choosing a network specialist and going, you would be required to see your primary care physician for a referral. Once that physician decided that you needed to see a specialist, you would have to call a company, Cost-Care, to notify them of the referral. Cost-Care would then call the referring physician to find out the details of the referral and make sure that the procedure was not something that the primary care physician could do. The Harris Methodist plan is set up as an HMO, but you have the option of paying for the HMO (network) only or pa ling more for the ability to go outside the network of doctors, simlar to the Sanus plan we had, but hopefully with much better performance. The major concern that has been expressed is the lack of local physicians and the existence of only one local network hospital, Denton Community. Harris Methodist representatives have assured us that they will attempt to contract with Denton Regional Hospital and add more doctor` to the plan. I have posted a complete list of the local network physicians on the bulletin boards in the patrol and CID squad rooms, Under the Harris Methodist HMO (network), there is no annual deductible, no drug deductible, no pre-existing condition clause, no claim forms to file at any time, $15.00 co-pay to the primary care physician, and no life-time maximums. Harris Methodist also guarantees that the rate increase for premiums on the HMO side will not exceed a total of 151 over the next three years. Under the PALICO network side, individuals must most a $500.00 deductible and a $150.00 drug deductible, meet requirements of a pre-existing condition, file at least an initial claim form, pay $15.00 on doctorts visits plus up to $50.00 for diagnostic procedures, and face a $1,000,000.00 lifetime maximum. On tho non-network side, PALICO'S deductibl.: is twice as high as the Harris Methodist plan. Additionally, Harris has a local office here in Denton and the network includes hospitals and doctors not only in the D/FW metroplsx, but also Wise County. I have attached a copy of the complete plan comparison and premium rates. 8 TOBACCO U$n Begininq in January, the City of Denton will charge tobacco users an addtional $10.00 per month which will be deposited in the wellness fund to be used for Wellness programs, In order to avoid this charge, you will be required to submit a signed form stating that you are not a tobacco user and have not been a tobacco user for at least one year. HEALTH RISK APPRAISAL The City of Denton will be conducting health risk appraisals of its employees in 1994. You will be asked to participate in this appraisal and, if yyou don0t, it will cost you an additional $10.00 per month. The Ctty plans to use the data gathered to not only give you information and suggestions about your health and how to improve it, but also to gat a profile of the health of City employees and an idea of where the Wellness program sho+ild concentrate its efforts. I have also attached a copy detailing how these charges will affect your premiums for both the HMO side (Plan I) and the non-network side (Plan I1I). If you have any questions regarding any of this information, please contact me. J nis Ho satyr t ployes Insurance committee u HARRIS METHODIST HEALTH PROGRAM PLAN DESIGN 8 PREMIUMS RECOMMENOATI(IN ACTIVE EMPLOYEES OPMQN 61 PLAN I - HMO ONLY $15/$20 Doctor CO-pays; 80% Hospital Prescription Drugs - $10 Cc-pay QUOTE CITY AMOUNT* EMPLOYEE AMOUNT E-1:1cyee Only $tBE,EC f'd9.5 f Employee 6 Spouse 292.99 te8.50 tC4,48 Employee I Children 253,13 138.50 64,63 Employee b Family 318.45 186.50 129,95 OPTION U PLAN III - HMO d Indemnity HMG -$1:/$20 Doctor Co-pays; 80% Hospital Indemnity - $300 Deductible; $20 Doctor Co-pay; 70% Hospital Prescription Drugs - $10 Cc-pay QUOTE CITY AMOUNT+ EMPLOYEE AMOUNT Employee Only $217.80 $188,50 s 29.30 Employee 8 Spouse 337,59 186.50 149,09 Employee 6 Children 291,85 188.50 103,35 Employee a Family 369,0e 188.50 119,58 +Does NOT Include $4/month for Coopers A Lybrand contract City's Total Contribution with $4/month - s192.50 ###f#f#fRtfRi#ftf#flRftfflR##t#1#1!11!11#!11!1!!!!!!1!!!!!!1 PROPOSED 1/1/94 PALICO# RATE CITY AMOUNT+ EMPLOYEE AMOUNT Employee only $218.80 206,30 12.50 Employee a Spouse 340.08 206.30 133.78 Employee a Children 298.82 206.30 92.52 Employee A Family 425.10 206.30 216.60 !City's budgeted contribution with 8,72% increase $205.30 (Does NOT include $4/month for Coopers a Lybrand contract) City's Total Contribution with $4/month - $210.30 !f#!!lRRR11!!11#ttltlfftlf!!!t#lR1t#!RR!#1!R##!1Rlf#!!!11lt! CURRENT PALICOR RATE CITY AMOUNT+ EMPLOYEE AMJUNT Employee Only $201,25 IS9,75 ?1.50 Employee a Spouse 312,80 189,75 123.05 Employee a Children 270.21 189.75 80.50 Employee b Fam11y 340,00 189,75 2:4,25 tC•ty's budgeted contribution is 1169.15 (Dees NOT include $4/r!.;nth for Coopers 8 L,bra! ! ::ntra-t ) CIt>'s Total Ccntributicn o•-.h fi;mcrth 3~INSRA?,TM 1Q/'d/93 -20- a NEI,'~E3S s'~0 1+04•iBC USfP E4v;0+EE PLAN I C M 'S OIFIEFENCE 1931 1931 EN010'rEf PEP.MO, POWLN CONTPI, 1194 hAPPIS PATE'NO PERINO PER:MO 14 FATE 1'S 1111,50 1111.50 10,00 11:301 :'a.e+ I SOOuS! it 1291 91 1111111,50 101,11 1129,10 :•:16;11 I th+IC 1•+ 1211.11 1111.50 11.11 1111.141 I Feel', 95 INA 1111.10 124,95 1111.151 10! ,44Br1. iff+i R11n 1011. fivoriClo for Flnilr COVIfIll, Ina this is 1 'OTYI' for the !mplor11 N111th 1rNfi6;1 prolrs/, 9:0 't hON >k,~hEiS OP NOM•iBC USED ;POOP C; MOtrYE:,hfS3 1N0 MN•11C USEP PLAN I CM'S 199+ PLAN I CI'•'S T1lI EMPl01EE till 914 WOO VOCIEYENT PREMIUM GONiP.I, 1111 ENR0IENEN PREMIUM {011102, 1111 PATE'MU P£P;MO W/O RAtE1M0 P MO PEP YO P{ '•:+6;ei C•I1 115 1111,50 1111,56 1!0,00 E+Dloiel Onlt 115 lIEI,SO 11'.1,50 it0 0G •e1::eF I Sccusi 11 1292,11 1111,50 111,11 E0010141 1 Spouse 14 1212. . •616,ee I Chi': 111 1251.11 HicsO 11,11 rh l . >1 f111s0 121,11 •cl6,ee { Fh1I p ales I Cr110 111 3153,+! 111,50 11.1: tlf 1111.15 1111,50 $31,11 IrDICr11 1 F1111, M I119.45 111.15 101 -41- .R M.i 1. MARPIS RREfERpEP DLU) ;i'; U Oa 13 1191 PLAN FRINIUM 12,51 AM JANUARY I. 10 HUNIER lit 1114 1411 • PLAN !!I ' OPENIU1115 'IJ9 r' NELOESS hD hOM•TIC USER EMPLOIEE PLAN IN CITY'S DI(F(PEMCE 1191 1111 ENROYEE PER,NO. (NPOLL11(117 PREMIUM (011111. 1114 HARRIS RATE NO PERINO PER;NO '14 PAI( •:10.11 NO 311 1111,10 1111.50 121.30 111.10 „1 •a'om I S;casl 11 33131 1111,50 111.01 115.11 •:10111 1 Child 111 211.21 1111.10 110.14 111.11 ii,1411e I Full) 111 3111,00 114130 111.10 1131.301 101 Plrfis 0115 Is post favorloll for 111111 Caulrlll, Ind this is I 'plan for the ENp10111 A111Sh !'eirlnce voific ;A%p I li:N•NC.. IS OP NON-11C USED 3ROUP C1 h:N•NE..hESS ASO 1* IN USER PUN !II Clli'S PLAN Ili Cl',*! 1911 1114 EMPLOYEE 1991 1191 IMPLOM ENROLLMENT PPEMIUN CONTII, 1114 INROLLMEN PREMIUM CC'i1PL 1114 PAYE;NO OW1110 PERINO RATE/NO PEP; NO 111014,0 :I0 le 0^11 31S 1211.00 1111.60 131.50 El,lotp Onir 916 1211.:0 11111+' . ~p10 es I So u,s T9 33'.59 1111.10 1119,01 E1p10111 I Spouse 11 331.51 0$30 111.03 010,11 I Child t;l 211.24 1111.50 120.11 (110101111 Child 111 211.21 111!6150 130,11 tiD!tl I flM1'r 116 319.06 1111.50 119.50 Employee 111111114, 115 311.00 1111,50 111. Sc. IOS 101 11:....:14, -22- l T- R I' 10{1;1113 _ PAGE 1 CITY OF DENTON COMPARISON OF BENEFITS PALICO w. HARRIS METHODIST HARRIS METH213111 PILL -NETWO BENEFE Each Mrplvy« and dpwd A Enh WN4" may seek can Each ampoyaa tnd dapanpant Rich- 01-0at may ink are musl mk )t a Prknary Cra from a pp y*Wn of owk choler. mwt Matt any PCP Wed onto %m s ftsk4w d Ih& choker vtytldan (PCP) hm ria Hrrlt provldtr Ilft Mtthods! Flttlri Plan Nowak PROVIDER NETWORK Donlon HCA C fftMAy HWU O nloon n HCp1 C wn Moftd y w»qW HrAt HO Httplltl 13 PCPI, 20 Rpoolahts 40 PCPs, 604 sptola:slo AJbWWM. Wop ~ ~ , KrnrL and A Wws, Ed". Km&t wrmll ~ prm.in d LIFE TIME MAXIMUMS • moor mtdcal Nona Nana 31,000.000 11,000,000 • Mtr1W diwrdw None Nana 510,000 110,000 ANNUAL DEDUCTIBLE Irldlvldwl No dsdLv" SIM w calendar yew ~ Year. plus $110 11,000 par atlydr yar amly No 016AC 01s 51,000 par ealtrldr year 51,6/o par ad«tdar yw $3,000 ptr otltndar yw MAXIMUM OUT-OF-POCKET InpvlAwl $:,000 pr ad*War yw $4.00 par alrW i year $2,000 w colwwr yw 11,000 w adtrdtr yew hmly 14.000 par ealrdar yar $1,000 pr twrldar yw $6,000 pr ealrtd 1 yw 111,000 par al ndtr yew I PRE-EXISTING CONDITIONS No Ex WWA D*r"s a Vs~ recolved rat, 3112 Ye, 311 t wt1An Wx (1) mwsw woosdn/ m, pk~ se or dgwWo a afaowa d" Is CLAMS FORMS No C1WM forms 10 Alt Enployta mull %dalm tam for Employe mwl AN YAtlal dtlm lrnplo$M mW fat WOW twm rslmDurttrrwA form for ralmDurtanrN Innn (y rsYnEuttrnrA Ia1sre3 . PAGE 2 CITY OF DENTON COMPARISON OF BENEFITS PALICO vs. HARRIS METHODIST IS METHODIST ralco PRESCRIPTION DRUGS Participerlrg Pfwmeay: $10 Covered T0% after a $500 arvlual Partklpatirq Phawary: S SO Nol•Coverad co-payment for up b a 30 day d"Allble, deductible, $5 supply co-peynwl $15 as W drug co-payment for up to a 50 day luoy. Mall Order. $10 oo-pw wrt for Mail Order: S 150 deductible, $5 up to a 50 dry supply. gwwlc onr0 co-paynw+l, 31 S 00 ay kw up to a OUTPATIENT SERVICES • Ilt"kian oftlca visits for dapnosia, I15? PrNwy Cara Ptryebim W S20 Par MNI law a SSW atv+wl $15 par visl; plus up b $50 Cvrrvd 70% anew a $1,000 use and trcebeerd of tilrnss end visk deductibli for dwwstk proeedrfee. r deductible. WTI 52015pit"al per AWL • Adult hei aaaeaw wN, welt ch5d $151 Prkrwy ere Physician per Covered 50% after a SSW arrKw $15 per visit; plus up b SW Not•Cowrad we" wall wwm asrn nabons. visit. deductible. lot depnostic prooaduaes. $20 speclaMal per Nell. OBIOYN no rahrral rpulrarrwrt • Mahal heath $20 pat Waft UP 10 20 Ne111 Per 320 par Nsil.net a 3500 ervw,al $15 per visit Com 701liahe.• s 61,000 year for ~ lam aWa deductible. Up to 20 visits per 310,000 masimun, oovere" OL deduotkla. $10,000 lntarvwdm and aalnw+l year lor AM Ism aisle rr&O"Wn oom hbr4o tion etd W""". • O low ON utpatient suirm, sn"thasla and ft$Wan • $00 oo-payr ism SW wi ud data" physician • W per visit Covered 70% OW a $1,000 oftlrm, pImiry ft center or Facility . $1000o~paymeM PPIylklm • S00 oo•P+ymaw Facility • s15 Par vlan aNaiaf aa/uelbla tali • $100 oo prrwA hilmotel • Owerroetie services, laboratory lasts Covered 100% Coveted 10% show a $500 annual Up to $50 par visit Cdverad 70% aller a s1,000 and hays deduetible. ewawaal dwr cwo • 1. sm ttllom and l *11ons Covered 100% CovMVd 50% after a $500 ar" $15 par visit Nol.Coverad dedue". • Gniargency roan visits or Urp m Care CovHed 50% Carted 70% abet a tAW annual $?5 per vi sit vs per vm a.aretibla. • ArrWw" services, for medically Covered 50% Covered 70% after a $600 winual Covered 00% her a $500 crow st Cowed 10% after a $1,000 nwueety arnrpancy care dedrratl6la, aa,atibia amwl died "a' 101113183 PAGE 3 CITY OF DENTON COMPARISON Of BENEFITS PALICO w. HARRIS METHODIST HARRIS MET}! D1 T PALI 0_ INPATIENT SERVICES • $wnd-ptlvafa roan, kr*Ang an Covwad 110% Cowrad 70% dw a 11500 vrwal Covwad 100% AW a 3500 Covrad 70% d w a $300 pw sarvkaa and Nadal Wppllas. do*M*ia. wvwd daductlda. admisskn dad xaw plus a $1,000 annwl dsdnctibla, M PhymWw 1aa WWnp a ooftsis Covwad 110% Covww:70% SAW a 5500 vvww Cowed 100% ■I1w • $300 Covww "%AW a 111.000 Oft a ftw *a Is hosOWi:ad daduaRla. wwW daductlbW, wfw d da"aw, Vp l0 30 IV6 Wd days pw oalwWw Covwad 110% Cawrod 70% d w a $500 wnual Covwsd 100% sslw • 3500 Cowed 70% abr a 330 pw yaw lor manW he" sarvkss. d"Xibla, annul daducllbW. sdm daducllWa plus a $1.000 WftJw dad KW41a 46' co~ CJTY or DENTOIV, TEXAS MUNICIPAL BUILDING / 215 E. McKINNEY / DENTON, TEXAS 76201 Tor Members of the Planning, Building Inspection, Community Development, and Community Improvement Departments FROKS Jan* Bites, Employee insurance Committee Representative DATEI November 1, 1993 6UBJEOTI Insurance recommendation for 1994 The Employee Insurance Committee has recommended that the City of Denton contract with Harris Methodist Health Program for medical insurance coverage for 1994. The City Council has endorsed the staff recommendation to place our insurance with Harris Methodist, but at this point no contracts have been signed. Please review the following material for discussion at the all-staff meeting Nov. 8. If you have questions, I can be reached Tuesday, Nov. 2 at 8529 or 6521. Wednesday through Friday, Nov.3-5, please call Cindy Cranford 350. A Bites 8171566.8200 DIFW ME10O 424.2529 Insrt93x.wk1 28-Oct-93 HARRIS METHODIST HEALTH PROGRAM PREMIUM COMPARISON TO PROPOSED PAIICO PREMIUM ACTIVE EMPLOYEES OPTION 01i PLAN I HMO ONLY $16/$20 Doctor Co-pays= e0% Hospital: Presciption Drugs $10 Co-pay MONTHLY QUOTE CITY'S COST+ EE COST DIFFERENCE _ Employee Only $188,80 $188.50 $0.00---------(12.50) EEmployee + Spouse 292.98 188.50 $104.48 12,60) Employee + Child 253.13 188,60 84 83 ((27.8927.89) Employee + Family 318.46 188.60 129.95 ) (88.86) + City contribution for non-tobacco user and Health Risk Assessment Participant OPTION--- PLAN III - HMO A Indemnity HMO =16/$20 Doctor Co-pay; 8OJ6 Hospital Indemnity $500 Deduct.; $20 or. Co-pay; 70% Hoop.; Prescription Drugs $10 Co-pay MONTHLY CE QUOTE CITY'S COST+ EE COST ( OI1994) (1994) Employee Only $217.80 $198.50 ---18.80 Employee + Spouse 337,69 188.60 549.09 15.31 Employee + Child 291.85 188,50 103.35 10.83 Employee + Family 308.08 188.50 179,68 (39,22) + City contribution for non-tobacco user and Health Risk Assessment participant Y H1ns43s,wk1 26-Oct-$; HARRIS PREFERRED PLUS 0~PLAN :21 A41 JANUARY 499/T0f ECEMSERU31 v 1994 - HARRIS - PLAN Ili - PREMIUMS GROUP A: WELLNESS AND NON-TOBACCO USER PLAN III CITY'S 1994 1994 EMPLOYEE PREMIUM CONTRI, I V94 01 -RATE/MO----_PER/MO-- PER/MO V Employee only $217 60 $188.20----_-29.30 Employee 6 Spouse 337.69 $188.E4 $9401 Employee 1 Child i 294.66 $188.5 V Employee a Family 368.08 St88,50 - Ste'9 GROUP 8; NON-WELLNESS OR TOBACCO USER - PLAN III CITY'S 1994 1994 EMPLOYEE PREMIUM CONTRi. 1994 RATE/MO PER/MO PER/MO Employee Only 5217.80 $178.30 39.30- C~{e Employee 1 Spouse 337.59 $178,30 59 09 G Employee I Child 291,85 1178660 11 I Employee A Family 360.06 1176,60 89.66 - l1 ~gi . GROUP C: NON-WELLNESS AND TOBACCO USER PLAN III CITY'S 1994 1994 EMPLOYEE PREMIUM CONTRI. 1994 RATE/MO PER/MO PER/MO Employee Only $217.60 $168.60 $49,30 Employee & Spouse 337.59 $168,60 169.09 Y2 Employee I Child 291.06 $168.50 Employee A Family 300.06 $188.60 1 /7 MG NiU q e r„w~ CERTIFICATION FOR HEALTH RISK APPRAISAL a CITY'S HEALTH INSURANCE CONTRIBUTION I certify that I will participate in the City of Oenton's Health Risk Appraisal Program for the Plan Year. By participating in this confideri}ial appraisal, 1 am entitled to an additional $10.00 per month contribution by the City toward my health Insurance for the Plan Year, If I subsequently do not participate in the program, I understand that I will lose the additional $10.00 per month insurance contribution for the remainder of the Health Insurance Plan Year. I understand that I can re-established the additional $10,00 per month contribution by agreeing to participate In the Wellness Program in a subsequent year, Signature Oept/Div. Printed or Typed Name Social Security Number Date 94HRAPi,tk 9/30/93 i HA.AMS KMOOISI IttALTH MLAV. FNYSMCItiYS I!I DL%TON ILLICKEIL THOMAS O. MD FAMILY FMCIICS PRIMARY CARE FHYSICTAN Wo scnplun. 0100 Demon. TX 76301 Cy00. WILLIAM W.1>0 FAMILY PKAcnce PAJMARY CARE PHYSICIAN 303 ON Nont RI, 0101 Denton, , x 76001 EVANS, STA LV C, DO FAMILY PRACTICY PRMcAY CARJZ PHYSICIAN 3613 O1/ Nona 1044.1101 Ocatm TX 16101 HAGEN. DOUGLA31. MD FAMILY PAACTIC4 PAJWAV CARE PHYSICIAN 1509 sctlptvn, 0300 ants, TX 76301 McBRAYEA. HARVARD L, MD FAMILY PRAcncg PRIMARY CARE PHYSICIAN 2509 "run. 0100 Dcntoa, TX 76101 NORTH TEXAS WEOICAL-SURGIC4L M FAOLY PRACTICE 1504 scopfun. /200 De atop, TX 76201 SHELTON. JOHN S. MD FAMILY PRAC11C8 PRMUY CARE PHYSICLW 1509 "ptun. 0200 Denim 1% 16201 TAYLOR, EVO" M, MD FAMILY PRAcnca ►RIMJLY CARE PHNSICLW Do Sceplun. ID00 Dc et Oa. TX 76X01 MATT. M ND RAN N. MD D+r2ERYAJ. MEDICLINE PAIMARY CARE PHYSICIAN 1106 Dan" Of. /N1 Dc ntok TX 16200 NORAJS,lACKIE R., 4D WTEIL%4AL 4EDICLYZ PAD"RY CARE PHYSICIAW 615 Dan" Oc6,t, 0113 Dcaton, TX 16205 WAHLERT. CHARLES H, 4D WIVR.XAL MEOIcI:%1! PRIMARY CARE PHYSIc7A4 1509 smptun, 0300 Deatoti TX 76201 ECKEL. BRVCZ ALAN, MD PEDtAT1UC! FRLMAAY CVLE PHYSICIAN 1SL5 scllplvn. S06 30 Ocnim TX 16301 JA.VU; MARJLYN ROSE, MD PEDLITIUCL PRJ4AAY CVLE PHYSICIAN 3515 Scnpfun, 03M De6to,%TX 76301 WOEHE6 FRAIL T. MD PEDEAMCS PAIMMY CARE PHYSICIAN 1301 N. I•IS DENfON, TX 76M I I Pap L Of J. ScpicmtK# 14.1MS LE6R08fRTl.ND,y.. .•~G1'~~g1gOY 1501 Scnpen, 0301" aM«. TX "I MAN11V, 5VK0 D. ND GYNEOOL0GY/OBSTrMC3 (0 1501 Scnplwn k 1/GYM Da moo. TX 76m WASSER,4A,V, ALAN S, ND GIEODLOOY/0851tMCS (08/GYM NOS NOn1 1.35, S.,le A Dedtook, TX %M WILSON. NOS 1.35,18 RONALD THOMAS MO GY~7:[)0lOGY/O85375f11JCS (OQ/GYN) DEMOK Tx 7630O CAVOY, DEBRA LOV1S1; MD HEKkTOL.OGY/ONCOLOGY ISIS Sceplisn, 0103 Do sl*N TX 76301 ANDERSON, JOHN SL, MD OTHOPEDICS IS13 Scrptun, 0100 De atom, TX 76301 ANDERSON, WILLIAM )OSEPH, 10D ORTHOPEDICSI"ND ISIS SCRIM A4 0100 DLNTON, TX 76301 IILAIK SWOR 1, 140 ORTNOpE01CS 3515 Sc6plun 010 De61o6, TX 76)01 4eADA45, CPAR1.85 A., MD ORTHOPEDIC3 IS IS ScTrtrn. 0100 Lkua, TX 76301 FOATERJ;IELD. KNONDA k MD MMOLOGY 301.4. Bookokid end De elon, TX 76301 ADMIRL ROBERT C, 4D UROLOGY Do Scmpl.n. 0100 Ddetok TX 76301 THO4AS, THOMAS Y. MD VAOLOOV Dealo6 Repoeal 446;u1 Gelde 1.19, Uld 0)10 Oda m TX YX07 DL I%70V C04.wNT1Y HO5?rrAL. 207 x eoemd end Lk n look, TX 7630) Pap 5 of S. sepeae6ee K 1115 Deelo6 pA3s;&Is AVERS. LESUE A. MD GYNECOLOGY/OBSTEl RIC3 (OB/GYN) e7S W lbs Llwane. TX 13061 ROSE GARY 4 MO GYNECOLOGY/0115 7ET7UCS (OB/GY7) 675 W. Elm. 1100 Li WVAIW. T1 75067 BURGESS. MICHAEL C, MD OYt,ECOLOOY/OBS rMCS (0B/GYN) ♦75 W. Elm. 4100 L49:n+IM, TT( 75067 BAKER. BRUCE H. MD NEPHROLOGY 101 L So wwom h.7• LASU%lle. TX rAS? NEELY, WAWA F. MD OPHTHALMOLOGY 30 W. Ma III SL, 0107A Lsrl tk. TX 73QS7 ANDERSON. WILLIAM IOSEPH, MD ORTHOPEDICS/HAND 477 W. ]all Le.itAft, TX 75061 CORJ3ITT, OAN.4Y J ERH, 40 ORTHOPEDICS 4" W. Eta to%U%J* TX 7$067 GIESLER. BRADY GLEN 4D ORTHOPEDICS 477 W. EJm L W6-A . TX 73067 HEERWAGEK JAMES ROBERT, MD ORTHOPEDICS 4" W. Van Ls•i1HDc TX 75067 WILLIAMSON, AJCHA0 WALLAH 4D. ORTHOPEDICS 671 W. 00 1AW(P11fe. TX 75061 ALREO, ILElTH A.. 4D PATHOLOGY 5000. Wes141101. 1101 LAMMIk. TX 73057 BURGESS. IUCMALRD C. 4D PATHOLOGY 600 0. West M1i01, /101 Lswilmne, TX 7$051 POLATLM, PETER SAATH, 40 P4 R R 617 W. Do MMIle, TX 75061 VASAVADAL SISH6NDU M. MV PSYCHIATRY 341 W. M1;e St. I 140 Lcwilvtlle, TX 73067 LEWIMLLE M£40RUL HOS101TAL 300 W. M'1I& S+n1t tAmm%, TX 7$067 Fop 101% 3epleam6e134 IM Le.6K0e hrk(mw 4lYh. YS HARRIS METHODIST MENTAL HEALTH PROVIDERS Denton Child and Family Clinic Helena Shapp-Dossey,M.Ed/LPC 817.566-1919 829 Malone, Suite 1 Denton, TX 76201 Steve Barnes,M,£d/LPC 817.565-0919 900 1-ISE South Denton, TX 76205 John Detn4s,Ph.D 817-566-5110 1810 Teasley Lane, Suits A Denton, TX 76205 Wallace R, Townsend-Parchman,MD 817-1103-2054 207 N. Hickory, Suite 113 Denton, TX 76201 6 AivYn.Yi~ r HARRIS MMO01ST HEALTH PLAN' PNVS1CIA,NS IN IIVOGEIORT HUDOLESTOfr.w7LLIAN 4!4q FAMM ~RACTH~ lR RY URA PMYSIC%M 0% Iltl Suuf Indppm TX %PA y' y FAWLV'09AC11Q IRL RYURElHYS1CLIN RAY, DAV10 A% DO 101 Wowmv W664 W6! C!" _ TX VA6 WALXEk 1pNWE3tE1,110 i r11R11Lr ~RACTN e RY CARE PH'VSICL4N iV _W P# 2. y~~ A r •EMKA CT1CE lOI Moot MIH~ WS R• w Co►etAN:;.ioNW.0O ` ^ yu Z,I1jACSCIF;; RYCAJtBlHYlKWf 4 so Woodrow will" Way art /ndppo^ TX 76416 SCOwER3. SCOTT C. DO GENERAL SURGERY lei W. wiIf06 W4y amw /ridS~poK TX 76146 i ~I S1lttrrl4f H1MS r~ t VISION PLAN SAVINGS '~Glivtrrr~Nt AND EAST ✓ 20%-6o% Dtscouni on all eyewear purchases tnctud(n To make an appointment, Nvp ttnttn9. pragressiUe tenses g members simply call 1.800.949• tint ibifocals) EYE] for a Ilse of providers in your area, Many locations are r 201L•60% Discount on all top open evenings and weekends. quality name brand frames Members must present their InOlJust a limited selecitorU TDP/NVP membership LD. card c..3 ✓ 20%•60% Discounts on pre. rendered a~t11t or services are National script+on and non-prescription Vision sunglasses ✓ 20% Discount on top quality LOGIC AT TRP-sa FANTASTIC Program name brand contact tenses SAVINGS1 texcluding disposable contact lenses) peoffe Vlston Expiou NYP Professional eye care ✓ IO%-20%Discount oneye Pobciouic6R at substantial savings e.ramsatParticipating Of1" $14900 lu95 locations UV4VI7ontWaar 5900 1095 Setalch CoalkV. ✓ Free trrt. U.V. Ptolecfion eeoo 2800 Professional consultation on a'5p4 NFee frame styles. colors, and sizes told 257 00 s uz vo FYame adjustments An lneredNe Savings ✓ 30 day unconditional or SI?a, r0- egg guarantee 'Bored on act(& r@to iMKO JorWer 13. 1993 LOW MONTHLY COST SAVINGS ON SUNGLASSES TOO1 Member Only ...............$1.00 MO. Published Relop NYP Member and R°V'6onCkbrr051W 1 $159.00 $61.50 One Dependent $1,50 mo. p eh Do ets- Member and 13100 7205 Entire Nousehold.... $2.00 mo. MAn, ORDER PROGRAM 0 Replacement contact lenses and non-prescription sunglasses such as Ray.Ban and Serengeti can be purchased through the mall order service. By calling 1800.736.9587 for contact lenses (including disposable lenses) and 1.800.878.3901 for sunglasses from anywhere in the United States. members can lag save 30%.50% off normal retail prices, r< ~f hm Ce~r M~ .y L 2 1 R I 500 CRIMINAL LAW I Lawrence ROBINSON, Appellant, v, state of CALIFORNIA 370 U.S. 660, 8 L.Ed.2d 758, 82 S.Cl. 1317 Decided June 25,1%2. Mc Justice S7EWART delivered the colic Division of the Los Angeles opinion of the Court, Police Department, the witness gave his opinion tha: "these marks and the A California statute makes it a crimi• discoloration were the result of the nal offense for a person to "be injection of hypodermic needles into addicted to the use of narcotics." This the tissue into the vein that was not appeal draws into question the consti• sterile." He stated that the scabs were tutionality of that provision of the state several days old at the time of his exam. law, as construed by the California ination, and that the appellant was nei- courtsinthepresent case. therunder the inffluenceof narcotics nor The appellant was convicted after a suffering withdrawal symptoms at the jury trial in the Municipal Court of Los time he saw him, This witness also tes• Angeles. The evidence against him was rifled that the appellant had admitted given by two Los Angeles police using narcotics in the past. officers. Officer Brown testified that he The appellant testified in his own had had occasion to examine the behalf, denying the alleged con- appellant's arms one evening on a street sersaiions with the police officers and in Los Angeles some four months denying that he lad ever used narcotics before the trial. The officer testified or been addicted to their use. He that at that time he had observed "scar explained the marks on his arm as tissue and discoloration on the inside" resulting from an allergic condition of the appellant's right arm, and "what contracted during his military service, appeared to be numerous needle marks His testimony was corroborated by two and a scab which was approximately witnesses. three inches below the crook of the The tnaljudge instructed thejury that elbow" on the appellant's left arm. The the statute made it a misdemeanor for a officer also testified that the appellant person "either to use narcotics, or to be under questioning had admitted to the addicted to the use of narcotics • • occasional use ofnareaics. That ponion of the statute referring to Officer Lindquist testified that he the 'use' of narcotics is based upon the had examined the appellant the follow- 'act' of using. That portion of the stat• ing mcming in the Central Jail in Los ute referring to 'addicted to the use' of Angeles. The officer stated that at the narcotics is based upon a condition or time he had observed discolorations status. They are not identical. • • • To and scabs on the appellant's arms, and be addicted to the use of narcotics is he identified photographs which had said to be a status or condition and not been taken of the appellant's arms at act. It is a continuing offense and j ' ` shortly after his arrest the tight before. differs from most other offenses in the ti Based upon more than ten years of fact that (ill is chronic rather than acute; experience as a member of the Nar• that it continues after it is complete and r 'r'. a f PART M CASES RELATING TO CHAPTER 2 501 ROBINSON W. Sr^ra Of CAUIORNIA subjects the offender to arrest at any scription and use of dangerous and time before he reforms. The existence habit-forming drugs ' 4 The right to of such a chronic condition may be exercise this power is so manifest in ascertained from a single examination, the interest of the public health and 417 if the characteristic reactions of that welfare, that it is unnecessary to enter condition be found present." upon a discussion of it beyond saying The judge further instructed the jury that it is too firmly established to be that the appellant could be convicted successfully called in question," 256 the Los Angeles under a general verdict if the jury U.S. at 45.41 S.Ct. at 426. the witness gave agreed either that he was of the "sta• Such regulation, it can be assumed. Iese marks and the tus" or had committed the "act" could take a variety c` valid forms A the result of the denounced by the statute. "All that the State might impose criminal sanctions, :rmic needles into People must show is either that the for example, against the unauthorized vein that was not defendant did use a narcotic in Los manufacture, prescription, sale, pure hat the scabs v,cre Angeles County, or that while in the chase, or possession of narcotics It time., of his exam- City of Los Angeles he was addicted to within its borders. In the interest of appellant was net- the use of narcotics • • • „ discouraging the violation of such ice of narcotics nor Under these instructions the jury laws, or in the interest of the general I symptoms at the returned a verdict finding the appellant health or welfare of its inhabitants. iswitnessalsotes• "guilty of the offense charged." An a State might establish a program Rant had admitted appeal was taken to the Appellate of compulsory treatment for those past. Department of the Los Angeles County addicted to narcotics. Such a program difled in his own Superior Court, "the highest court of a of treatment might require periods of he alleged con- State in which a decision could be had" involuntary confinement. And penal 3olice officers, and in this case Although expressing some sanctions might be imposed for failure :verused narcotics doubt as to the constitutionality of "the to comply with established come to their use. He crime of being a narcotic addict," the pulsory treatment procedures. Or a Ns on his arm as reviewing court in an unreported opine State might choose to attack the evils illergic condition ion affirmed the judgment of convic• of narcotics traffic on broader fronts i military service. tion, titing two of its own previous also-through public health educa• ,rroborated by two unreponed decisions which had upheld Lion, for example, or by efforts to ame• the constitutionality of the statute. We liorate the economic and social ructedthejurythat noted probable jurisdiction of this conditions under which those evils misdemeanor foi a appeal, 368 U.S, 418, 82 S.CL 244, 7 might be thought to flourish. In short, narcotics, or lobe L Ed.2d 133, because it squarely pres. the range of valid choice which a State of narcotics • • 0, ents the issue whether the statute as might make in this area is undoubtedly statute referring to construed by the California courts in a wide one, and the wisdom of any s is based upon the this case is repugnant to the Fourteenth particular choice within the allowable portion of the state Amendmentof the Constitution. spec, im is not for us to decide. Upon cted t , he use, of The broad power of a State to regu• that premise we turn to the California pun a condition or late the narcotic drugs uaffc within its law in issue here identical. • 1 1 To borders is not here in isul, Store than It would be possible to construe the { Ise of narcotics is 40 years ago, in Whipplo . Martinson, statute under which the appellant was condition and not his Court explicitly ::cognized the convicted as one which is operative nuing offense and validity of that power "There can be only upon proof of the actual use of her offenses in the no question of the authority of the state narcotics within the State's jurisdic• rather than acute; in the exercise of its police power to tion. But the California courts have not it is complete and regulate the administration, sale, pre- so construed this law. Although there t 502 CRIMINAL LAW was evidence in the present cas; that fl is unlikely that any State at Ihis the appellant had used narcotics in Los moment in history would attempt to Angeles, the jury was instructed that make it a criminal offense for a person they could convict him even if they to be mentally III, or a leper, or to be disbelieved li~at evidence. The afflicted with a venereal disease, A appellant could be convicted, They State might determine that the general were told, if they found simply that the health and wr:fare require that the vic• appellant's "status" or "chronic con. rims of these and other human afnic• dition" was that of being "addicted to lions be dealt with by compulsory the use of narcotics." And it is impos- treatment, involving quarantine, con- sible to know from the jury's verdict finement, or sequestration. But, in the that the defendant was not convicted light of contemporary human knowl- upon precisely such a finding, edge, a law which r ade a criminal The instructions of the trial court, offense of such a disease would doubt. implicitly approved on appeal, less be universally thought to be an amounted to 'a ruling on a question of infliction of cruel and unusual punish- state law that is as binding on us as menl in violation of the Eighth and though the precise words had been Fourteenth Amendments. written" into the statute. Terminiello We cannot but consider the statute v- Chicago 337 U.S. I. 4, 69 S.Cl. before us as of the same category. In 894, 895, 93 L.Ed. 1131. "We can this Court counsel for the State recog- only take the statute as the state courts nized that narcotic addiction is an ill- read it." 1d.. at 6. 69 S.CI. at 896. ness. Indeed, it is apparently an 11ness Indeed. in their brief in this Court which miy be contracted innocently or counsel for the State have emphasized involuntanly. We held that a state law that it is "the proof of afdiciion by which imprisons a person thus afflicted circumstantial evidence ' • I by the as a criminal, even though he has never tell-tale track of needle marks and touched any narcotic drug within the scabs over the veins of his arms, that State or been guilty of any irregular remains the gist of the section." behavior there, innicts a cruel and This statute, therefore, is not one unusual punishment in violation of the which punishes a person for the use of Fourteenth Amendment. To be sure, narcotics, for their purchase, sale or imprisonment for 90 days is not, in the possession, or for antisocial or disor- abstract, a punishment which is either derly behavior resulting from their cruel or unusual. But the question can. administration. It is not a law which not be considered in the abstract. Even even purports to provide or require one day in prison would be a cruel and medical treatment. Rather, we deal unusual punishment for the "crime" of with a statute which makes the "status" having acommoncoid, of narcotic addiction a criminal We arc not unmindful that the viciois offense, for which the offender may be evils of the namcKics traffic have occa- prosecuted "at any time before he sionedthe grave concernof govcrrnrlenr reforms." California has saidthataper- Theis are, as wr have said, countless t' son can be continuously guilty of this fronts on which thine evils may be legit- offense,whetherornothehastverused imatelyatlxked.We dealin Wscase orily or possessed any narcotics within the with an individual provision of a par. State, and whether or not he has been ticularized local law as it has so far been guilty of any antisocial behavior there, interpreted by the California courts. c. am titvtllVFMtNJ Bias Barred in Company Health PlanAll diseases, including AIDS, must be treated aUke under EEOC's new rules-, Impact on come people. Also allowed are clauses that exclude from coverage pre•exiating health condition', limits on pay. ments for blood transfusions or X. rays, and exclusions on elective our. gory or experimeow drugs, The rules place the burden of proof on the ecoto;er and permit a 1 Proof that the company In not engaged In the dieability.-based &a- p~l►Proofthet gd the dioparate treat- ment is Justified by legitim.te actu• anal data. reertain ailments ust be oHoolfegd eto prevent the health insurance pplan from be- The Equal Employment Opportu- review the matter, romfngananciallyinsolventandthat city Commission has issued a there is nononducrlminatory way to series of rules requiring companies eigniflcnnt She believes they send a avoid I' Prof that. to treat all diseases and ailments signal that claims of discrimination ailments would avusega ordres~tie" alike under employee health Insur• will be taken seriously, She cau• Increase in premium psyments, co. once plans. Barred under the new tioned, though, that it remains to be ppa es or cause a guide lipnesarehiring andfiring based seen how the rules will be enforced, draaadcdrop In the levlel of benefits ' anch lane n 's potential impact on And, in the end it will be up to the The changto must make the plan courts to decide now the ADA will be unavailable or unattractive to a of . e rules apply virtually to all Interpreted, she Bald employyee health plane, whether pro. 'Me Is not final," she added. "A drop or be excluded °from coverage, videdbycommercial insur%roor om- lot of companies are facing dnffleWt pany-administered, and are a major questions about health care costs not pr11 ovidef any at b the does {interpretation of the 1990 Americans and they often seek the easiest wag with Disabilities Act. prompt the new regulatirict out, e If sinesses rest In its firet application of the need some ourt dec~isionss t en expand coveraVge Is open to debater j rules issued June 8, the EEOC filed a that employers don't cap overage for Harlow though! many companies lawsuit In federal district court in AIDS or other illnesses that are would Shy away from dramatic steps New York claiminga health an run expensive." by a !union violated the ADA by that could berm them s the employ excluding coverage for treatment of TheAOA's Ro~els ment market, such a tapping all conditions related to AIDS, The rules are based on the AD health care treatments at a low level, The effect of the new rules is which bare employment dfacrimfaa are Yet' she noted that om anise difficult to determine. While there tion on the basis of disabilittyy Ac. Insuraanceppremf a and trying to have been cases of companies excludg• cording to the rules, the act proh~lbita find ways to cut costs coverevgerfor some didi eases andt&I whet h er! it visa direct~aas mwhenio I human , a resources policy for the U.S. Cham. ments, busineas experts sayy they are company denies a benefit to a person bar of som Bye Commerce, said manager that 'very not common. Also, the rulea Issued with cancer, or Indirect, as when a few" buafneraes currently reutrict or but r,ottIn uran ecunderwritpere,ewhom formcert in health treatments, coverage diseases. Btl; She reflreed to predict piece cape on coverage for certain critics blame for setting the standard The rules state that insurance whether on,panfes would cut or on policy excluafona. provisions which single out a parie• expend coverage in the future, not-The LU's Natio Project d s not have figureelon how froamcancer °pmg omdnel disetfase ogr pa only the! time."te are not ex• much insurance discrimination ex• deafness, are not ellowedy Pending and his time, fists, said Its associate director, Ruth Ceps on payments are Bess did caution, however, that Harlow. However, she said that it Is ted but they must be "applied eequalily smell rules busineeaeo. ?If ycubpurdchass on ggarr"serious problem" that has been to all insured employees (and! not plan and rely on the insurer to ng sin courts the basis the decialon by ca (Houston omp nydto tY" It Is acceptable to pro tide fewelr don't,dyou re H le,"~e aid. "You place a $5,000 cap on AIDS benefits, benefits for a bread category of ail- make widgets, you have no time tobe The ease was appealed to the U.S. ments, such as eye care, even though insurance experts." Sui reme Court, which declined to those restrictions may have a greater 28 ABA MRNAt / SEPTEMPlit 1091 -Henry J. RerAe w~vroN v. w s~.oo" 6 4 § 143.109 MUNICIPAL OFFICERS fi EMPLOYEFS CIVIL SERVICE Title 5 Ch. 143 and control of the members of the technical, communications, and uniformed and detective classes, Prior Laws (e) Each provision of this chapter relating to eligibility lists, examinations, Acts 1947, slit Log appointments, and promotions applies to the appointment or promotion of A Acts s 1 199773 3, Slit 63rd Leg Lc. members of the technical, communications, and unformed and detective Acts 1979, 66th I L, classes within the members' respective class. Acts 1987, 70th Leg., ch. 149, 1 1, eff. Sept. 1, 1987. Salary to municipal,h Revisor's Noll (1) The revised law omits the source law reference to population because Municlpal Corporal Section 141101 provides that this subchapter applies only to a municipality CJ.S, Municipal Cr with a population of 1.5 million or more unless otherwise provided. (2) The revised law substitutes the term "department head" for the source For notes relating law term "chief' because Section 143.003 defines "department head" to mean notes of decisions un, the chief of the department, liblorical Note 143.111. Ten Prior Law" Acts 1983, 69th Leg., ch 95g, 121. Acts 1977, 65th Leg., ch. 63, It I, Vernon's Ann.CIYSL art. 1269m, 1 14A, (a) The depart r Acts 1983, 68th Leg„ p. 3007, ch. 317, 1 1. classification to I designated person library Refertnees person's own loni Municipal Corporations 8.184(5). CJS Municipal Corporations 1 513, (b) The tenipm person who has r 143.110. Salary construed as a pr (a) Except as provided by Section 143.111, ..II fire fighters or police officer Acts 1987, 70th Lq in the same classification are entitled to the same base salary. (b) In addition to the base salary, each fire fighter or police officer Is Sectior, S(a) entitled to each of the following types of pay, if applicable: application of ' (1) longevity pay; more, (2) seniority pay; (3) educational Incentive pay as authorized by Section 143,112; and Prior tiwt (4) assignment pay as authorized by Section 143,113. Acts 1947, 50th Lri Acts 1987, 70th Leg., ch. 149.; I, eff. Sept, 1, 1987. Acts 194973. 3 Lcr Acts 199bird l Revisor's Note Ads 5970, 66th I (1) Section 8(a) of V,A.C,S. Arilcle 125Sm, codified at St,:lon 143,021, limits the application of Section 8 to municipalities with a population of 1.5 Base salary, scr 4 1J million or more. Temporary duffles it, (2) A provision In Section 8(b) of the source law, edified as Section see 1 143,039 143.111, states that a fire fighter or police officer may temporarily fill a position in it higher classification and, while doing so, receive the base salary of the higher position, The revised law odds the provision In Subsection (a) to I reflect this e,septiots to the general law that Is codified In this section. h ~eipal c a 156 U.S. Municippal l . i I I s r 0 ERS fr EMPLoyEES Title S CI SERVICE § 143.11 l ations, and uniformed Historical Note PrW ZAW0 Acts 1979,66h Leg„ p. 1857, ch. 753, 1 J. ty lists, examinations. Acts 1947, 50th Leg„ p. $50, ch. 325. Acts 1983, 681h Leg, p. 2247, ch. 420, 11, tent or promotion of Acts 1949, Slat Leg, p. 1114, ch. 572. Acts 1985, 69th Leg., ch. 126, 1 1. 'ormed and detective Acts 1973, 63rd Leg., p. 300, ch. 140, 1 I. Acts 1985. 691h Leg, ch, 958, 1 L Arts 1979, 66th Leg., p. 152, ch. 83. 1 I. Vernon's Ann.CN.St, art. 1269m, 16(b). Cross References Sdary In municipality with population of less than 113 million, see 1143.041. Library References population because Municipal Corporations 0-186(1), 199. I to a municipality CJ.S Municipal Corporations is $86, 612, provided, ad" for the source Notes of Decisions ent head" to mean For notes relating to salary, generally, see me' of decisions under 1 143041. ch. 958,1 21. 143.111. Temporary Duties In Higher Clusificatlon t. ars. 1269m, 114A. (a) The department head may designate a person from the next lower classification to temporarily fill a position In a higher classification. The designated person is entitled to the base salary of the higher position phis the person's own longevity pay during the time the person performs the duties. (b) The temporary performance of the duties of a higher position by a person who has not been promoted as prescribed by this chapter may not be construed as a promotion of the person. rs or police officers Ads 1917, 70th Leg„ ch. 149, 11, eff. Sept. 1, 1987, Clary, or police officer is Revlaoe'a Notes let Section 1(a) of V.A.C.S, Article 1269m, codified as Section 143,011, Ilm)ts the application of Section 8 to municipalities with a population of 1.5 trillion or more. Historical 143J 12; and Note lake 1AW1 Acts 1979, 661h Leg., p. 1857, ch. 753, 13. Aar 1941, sash Leg., p. 550, ch. 325. Acts 1983, 68th Leg,, p. 2247ch. 440, 12. Acts 1949, Slit Leg., p. 1114, ch, S72, Acts 1917, 69th Leg., ch. 126,', I. Acts 1973, 63rd Leg„ p. 300, ch. 140, 1 1, Acts 1965, 69th Leg., ch, 958, 1 L Acts 1979, 66th Leg., p. 152, ch. 83, 1 I. Vernon's Ann,Civ.St. art. 1269m, 18(b). Section 143,21, Cross References populstlon of 1.5 Raw salary, see 1 143,110, Temporary duties in higher ciassirlcatlon in municipality with populatlon of leis than 1,5 million, lifted as Section set 1 143.038. m rarity fill a v the bate salary Library References subsection (a) to in this secllon. Municipal Corporations 0-18602, 199, CTS. Municipal Corporations II $86, 612. 137 § 143.111 MUNICIPAL OFFICERS it EMPLOYEES CIVIL SERVICE Title ! Ch. 143 Notes of Decisions For notes re)aiing to temporary duties In higher classification, generally, we 8 143.038. Prior Law*. Acts 1947, 50th Icg . , Acts 1949, slat Leg. I § 143.112. Educational Incentive Pay Acts 1973, 63rd Leg, (a) In this section: (l) "Accredited college or university" means a college or university that Certification and educa Is: million, we 1 141 state )boa d accredited by education innationally h state In which the college or unlversi t located; and g y Is Municipal C i CJ.S. Municipal ipal Cot (B) approved or certified by; Comm ssion Stan dard and) Edthe Quallned courses I i chiing the ores curriculum or Itsequivalent In f ws enforcement; or _ (ii) the Texas Commission on Fire Protection Personnel Standards 1. Qualified courses and Education. Educational Incenttst by l'emon's Ann.Civ.St (2) "Core curriculum in law enforcement" means those courses In law now, this section). u a enforcement education approved by the Coordinating Board, Texas College tx bawd on completio, and University System, and the Texas Commission on Law Enforcement ment core curriculum Officer Standards and Education. college or univeraitq bu mediate or adwnced a (b) The governing body of a munlclpallty may authorize educational incen• Tessa Commission on th•e pay for: 1973, , N No ter odHds and E. . H-Sl9, (1) each fire fighter within each classification who has successfully com- pleted courses at an accredited college or university that are applicable § 143.113. Assi toward a degree In fire science; or (2) each police officer within each classification who has successfully (a) In this settle completed courses at an accredited college or university that are applicable en "Bilingual toward a degree in law enforcement-police science and Include the core ly who lati in the curriculum in law enforcement, trans trng or (c) The educational Incentive pay Is in addition to the regular pay received necessary, effect by a fire fighter or police officer. (2) "Emergent partment who pr Acts 1987, 70th Leg„ ch. 149, 1 1, eff. Sept, 1, 1987, lion for member Revlaor'e Note (3) "Field Iran is assigned to r (1) Section 8(a) of V.A.C,S, Article 1269m, codified as Section 143.021, training officer:, limits the application of Section 8 to municipalities with a population of 1.3 million or more. the e fire Je de apartro rn (2) The revised law substitutes the term "governing body" for the source law and stabilizes of term "clty council or legislative body" for the reason stated in Revisor's Note an emergency. (3) to Section 143.006. (b) The municll (3) For the purpose of consistency, the revised law substitutes "fire fighter" emergency ambul. for "firemen" and "police ofFicer" for "policemen," ' l58 ' rlals response tea 1 FRS de EMPLOYEES CIVIL SERVICE Title 1 CL 143 $ 143.113 Hlstarlcol Note Mor 1AWl Acts 1979, 66th Leg., p. 132, ch. 63, 1. Acts 1947, Mh Leg., p. 550, ch. 325. Acts 1979, 66th t.eg,, p. ISS7, ch 733, 3. Acts 1949, 51st Lee., p. 1114, ch. 572. Acts 193), 661h Legeg., vh. 2247, ch, 420, 2. lets 1973, 63rd Lee, p. 300, ch. 140, 1 L Y rnonsSAnnCiv~St. art. t269m,11 V0 Cross References ge or university that Certification and educational incentive pay in municipality with population of less than 1.3 million, see 1 14,044. rig agency and by the Ilege or university Is Nunkl al Corporations Misty References p rpontions tions 11 $86 CIS. Municipal Corporations 1 86, 612. d Officer Standards Nolte of Dselslons its equivalent in law Qualified coupes I !n order to be eligible for educational Incen. live pa Menlo it police officer must have com• ~!eted law enforcement courses comprising the 'ersOnnel Standards I. QualtBed tours" care curriculum" approved by the Coordinat• Educational Incentive payments, authorized ing Scard, Texas College and University Syys• by Vernon's Ann.Clv.St. art. 1269m (repealed; tam and the Texas Commission on tjw En• lose courses In law stow, this section), as amended in 1973, could forcemeat Officer Standards and Education. oard, Texas College be based on completion of basic law enforce. Id. i Law Enforcement atnt core curriculum courses at an accredited Training courses or programs which did not roilge or university but not solely upon Inter, meet the statutory requirements IVernon's axdiate or advanced certificates issued by the Ann.Civ.St. art. 1269m (repealed; now, this educational Incen• TOM Commission on law Ertforcemenl off,. section) I for "educational incentive pay" could it: Standards and Educatlon. Op.Atty.Gea. not serve as the basis for Incentive payments to 197), No. N-159. police officers. 1d, s successfully com• shat are applicable 143.113. Assignment Pay to has successfully (a) In this section: that are applicable (1) "Bilingual personnel" means a number of the fire or police depart. A Include the core merit who in the performance of the member's duties is capable of effective. ly translating orally a language other than English Into English, and wh.zn necessary, effectively translating the language into written English. :gular pay received (2) "Emergency ambulance attendant" means a member of the fire de• patiment who provides emergency medical care and emergency transporta• lion for members of the public, (3) "Field training officer" means a member of the fire department who Is assigned to and performs the duties and responsibilities of the field Sectlon 143,021, Irsining officers program, wpulation of LS (4) "Hazardous materials response team personnel" means a member of the f ,r the source law and stabilizes ore participates assigned the i stabilization u of hazardous materials in it Revisory Note an emergency, (b) The municipality's governing body may authorize assignment pay for its "fire fighter" emergency ambulance attendants, field training officers, and hazardous mate. rials response team personnel, The assignment pay is in an amount and Is l59 * $ 143,113 MUNICIPAL OFFICERS & EMPLOYEES CIVIL SERVICI ?qle ! C6 payable under conditions set by ordinance and Is in addition to the regular 143 pay received by members of the fire department. The head of thfire g 143.114. A• department is not eligible for the assignment pay authorized by this subset. tion. (a) Tn this set (c) The municipality's governing body may authorize assignment pay for (1)'Bomb bilingual personnel performing specialized furulons as interpreters or trans- who is assign lators In their respective departments. The, assignment pay is in an amount handling, is cl and is payable under conditions set by ordinance and Is in addition to the (2) lots ol' regular pay received by members of the fire or police department. If the who pilots a I ordinance applies equally to each persun who meets the criteria established h (3) "Special by the ordinance, the ordinance may provide for payment g or police officer who meets testing or other certification c i eria for an police the assignment, or the ordinance may set criteria that will determine the foreign languages In which a person must be fluent or other criteria for eligibility, (b) In o mural The ordinance may provide for different rates of pay according to a person's polity Is n capability and may allow more pay to those persons who are capable of net, bomb squat squat translating orally and Into written English. The heads of the fire and police assignment pay departments are not eligible for the assignment pay authorized by this ordinance and t subsection. police de t pay Acts 1987, 70th Leg., ch. 149, 1 1, eff. Sept, t, 1987, assignment pav Acts 1987, 70th I, Revlwr'a Note (1) The revised law omits the source law reference to population because Section 143,101 provides that this subchapter applies only to a municipality (1) bIn sloli ased I with a population of 1,5 million or more unless otherwise provided, being based federal cenui (1) The revised law substitutes the term "governing body" for the source law Construction term "city council or legislative body" for the reason stated In Re,,isor'i Note t mean popuk (3) to Section 143.006. (2) The rc% (3) The revised law substitutes the term "head" for the source law term term "city r„ "chler' because Section 143.003 defines "department head" to mean the chlef (3) to Secth i of the department. , (3) The rv, "chler' bccarr Historical Note I of the depai Prior Laws Acts 1985, 69th Leg„ ch. 386, it 1, 2. Acts :979, 66th Leg., p. 153, ch. 8), 1 2. Acts 1985, 69th Leg„ ch. 938, 11 1, 3, Acts 196), 68th Leg, pp, 1748, ch. 338, 1. Vernon's AnnClvSt. art, 1269m, } 8B, Prior Law Acts 1985, 69th Leg„ ch, 374.11 1, 2, eubds. (a); (W), (5), (6), (7); (d), Acts 1979, 6r Acts 198), 6A11 11 Cross Referent" I AsslQnment pay In municipality with population of less than 1.5 million, see 1 143.042. I Field training office assignment pay, generally, see 1 143.04). Assignment pay In Field training u111, Llbrasy Relerentea .Municipal Corporations 199. C.J.S. Municipal Corporations it 586, 612. Municipal Cm P, C1.S. Munlcipnl 1 60 r +;,I re 1~ .Y 1 ' Y I k &SI k410-28-93PCO3 - 6 I wmEMORANDUM To: Tom Shaw - Purchasing.Manager ~~0 Q From: Tom Klinck, Director Of Human Resources Date: October 27, 1993 Subject: Employee Health Insurance Program - Bid a 1523 Consent Agenda - November 16, 1993 Tom, this memo is to request your assistance in placing the bid for Employee Health Insurance on the November 15, 1993 City Council Consent Agenda. I've enclosed our City Council Aeport on this item from the October 26, 1993 Work Study Session, As you'll note, the Harris Methodist Health Plan bid was determined to be the lowest bid meeting bid specifications based on total plan cost (City and employee costsl. Additionally, there were a number of additional factors that were used to evaluate the bids that made the Harris bid the most responsible bid, The City Council concurred with the staff recommendation to place our employee health insurance coverage with Harris Methodist Health Insurance Company effective January 1, 1994. The City's cost for the remainder of the 1993/94 Budget year (January 1 - September 30, 1994) is estimated at $1,361,379. The City's 1993/94 budget includes health Insurance costs for the same period of approximately $1,569,149. Thus, there is estimated to be $2010770 less expenditures than budgeted, If you need additional Information or a point clarified, please let me know. Thomas W. Klinck tsmem94a.tk 10/27/93 t R #e i .e wnn~ DATE: October 26, 1993 UT COUCII,R RT FORMAT WORK SESSION TO: Mayor and Members of the City Council FROM: Lloyd Y. Harrell, City Manager SUBJECT: City Employee's Nealth Insurance Program - Effective January i, 1994 RECOMMENDATION: It is the staff's recommendation that the City Council authorize staff to enter into a contract with Harris Methodist Health Plan (Harris Methodist h Plan) to provide health insurance coverage for City of Denton employees and their dependents for the plan year January I to December 31, 1994, f SUWAIY: On September 24, 1993, the City received eight bids for a fully-insured managed care health insurance program. Six bids were on fully-insured basis, and two were on self-insured basis, The two Self-insured bids did not nest specifications, Staff reviewed the six Proposa l$ that met our bid specifications for a fully-insured program. The following criteria were used to evaluate the bids: 1) total plan cost using monthly premiums quoted and Projected U enrollment (City cost and employee cost); 2) length of rate guarantee; 3) schedula of benefits and plan design features, such as co-payment, deductibles and out-of-pocket maximums; 4) Network providers (Doctors, hospitals, and other medical providers) S) ability to provide quality service for providers, employees and dependents, and administering contract provisions. Considering the combined relative importance of these c aerie, our analysis shows that the Harris Methodist Plan is the most advantageous to the City, Exhibit I-A and 1.8 displays the variance between the City cost, employee cost, and combined plan cost for the two lowest cost bidders (Harris Methodist Health Plan and Aetna/Southwest Health Plan) and is compared to the proposed renewal rates of Philadelphia American Life Insurance Company (PALICO). As shown in Exhibit I, by awarding a contract to Aetna/Southwest, the City could save approximately 2398,000 over the current proposed PALICO renewal costs for the 9 months remaining in the 1993/94 budget. However, it is still felt that the Harris Methodist plan is the most advantageous plan overall because dependent (family) premiums are considerably toss than Aetna's dependent (family) premium rates. a 1 October 26, 1993 City Council Report on Employee Health Insurance Page 1 Employees who cover dependents (and pay this cost) would pay considerably more out of pocket If the City placed Its health Insurance coverage with aetna (see Exhibit III for premium rate comparisons), In Addition, Hams Methodist has assured the City that it will guarantee that thi HMO componant rates will not increase more than a total of 15% Over a I year period. There is no guarantee, beyond one year, against any rate Increases for either Aetna or PALICO. Thus, with the Harris Methodist Plan, the City would be In a position to better budget for and control long-term health insurance costs. The rerawa1 rates quoted by our current vendor, Philadelp►,ia J.merican Life Insurance Company (PALICO), are higher than Harris Methodist Plan's rates. EAhibit II provides an analysis of the advantages and dlsadyantagea of each of the three health Insurance orcgrams under consideration. Based on these issues, it is the staff's recommendation to place our health insurance coverage with Harris Methodist Health Plan. we are proposing the Harris Methodist Plan's Options I and III to employees in 1994. This will provide employees an opportunity to choose during enrollment either; o a Health Maintenance Only (HMO) Only - Option I QB o an HMO Q1y,1 Indemnity Plan - Option III Exhibit III shows the monthly premium rates for the two Harris Methodist plans and the sane two options with the Aetna plan compared with the proposed PALICO premiums, Our cost-analysts,of the Harris Plan shows that the City would be approximately 1201,110 under the 14% increase currently in the 1993/94 health Insurance budget (see Exhibit IV), This assumes that the City's contribution for all employees would be based on the 'Employee Omly''premivm (fied.50) for the Harris Methodist H40 Only (Plan I), The Employee Insurance Committee (EIC) has reviewed the Harris Methodist Plan and unanimously agreed to recommend it to the Executive Committee and the City Council, Following the Executive Committee's 'pproval of the EIC's reccmmendation, staff requests Council direction to: o develop A service agreement with Harris Methodist Health Plan to be brought to the Council to consider for approval in November, 199j; and o develop a transition and open enrollment plan to implement the Harris Plan, should the City Council give staff the final approval to place the employee health insurance program with Harris Methodist Health Plan. kk X ti c October 26, 1993 City Council Report on Employee Health Insurance Page 3 ~C1fGROl1MOt i In June 1993, the City began negotiations with Philadelphia Life Insurance Company (PALICO), the current employee health insurance carrier. In a letter to the City, dated August 9, 1993, PALICO 0,411ned the conditions under which it would renew Its contract with the City of Denton (sea Exhibit V). Although a risk-sharing arrangement was one of the conditions for PALICO's renewal with the City in 1994, there were other Intervening factors that had to be resolved to ensure that we had stable and guaranteed rates in 1994. There were several negative contingencies built into PALICO's renewal, This, staff decided to re-bid the health ;Ian to ensure we had a beck-up position In the event our negotiations with PALICO failed to guarantee a stable health insurance program during the 1994 plan year, Exhibit VI provides a comparison of the benefits, coverages, and costs (co- pays, deductibles, out-of-pocket maximums, etc.) of the Harris Methodist Plan, Aetna/Southwest Plan, and the proposed PALICO plan. This display shows that Harris Methodist Plan offers employees more benefits at lover co- payments, deductibles and Out-of-pocket maximums. An evaluation has also been completed on the network of physicians, hospitals, and other medical providers. Exhibit VII provides the listing of Iosal providers for the Harris Methodist Plan, Aetna/Southwest Plan, and PALICO. PALICO has a significantly larger network of providers. However, the concern for the City employees was that the PALICO renewal required the employee to initiate •M be responsible to any referral to a specialty doctor, Thus, the employee insurance Committee felt it would crests an additional burden on employees and providers to effectively arrange proper and timely care. While the Harris Methodist network Is not as extensive, it is a sound, stable, And Denton established group. We have further communicated to Harris Methodist our desire to have additional local providers (Including Denton Regional Medical Center) in the network (see Exhibit VIII), While they have indicated they cannot accomplish this before January 1, 1994, they will review tha providers in the first quarter of ilia and consider additional providers (see Exhibit V11). The final recommendation for Harris Methodist Health Plan was based on; 1) improved plan design and coverage 2) lower combined plan cost to both employees and the City, and a guaranteed 3 year not to exceed 15% rate increase 3) positive references of both employees and providers Overall, the Harris Methodist Plan was rated more advantageous to the employees and the City, The Harris Methodist Plan offers a better plan design and coverages. Compared with the PALICO'a proposed 1994 premium rates, the Harris Methodist Plans (Options 1 and Ili) offer premium rates for family coverage that are substantially lower than PALICO's rates. Our evaluation of City (,.ployee's selection of dependent coverage shows that when health prem1w for family coverage is high, I'mily enrollment tends to deelIn*. The Harris Methodist Plan's family premium would encourage those i October 21, 1993 City Council Report on Employee Health Insurance Page 1 employees who could not afford family coverage under the current one-option plan with PALICO to enroll in family coverage through the Harris Methodist HMO only. While On the surface the Aetna proposed plan offers considerable savings to the City over that budgeted, it has several negative features: 1) Higher dependent (family) premiums so that employees who cover dependents would bear an additional cost or not cover dependents at all; no second or subsequent rate increase guarantees 2) Limited access 0 pharmacies (Eckerd's only) 3) Limited provider network and concerns about the, stability of the current network 1) No in-Denton representative to assist employees, dependents, and providers with problems and questions 3) No mental health coverage expect through network providers; no h.ontal health providers listed for Denton LR4S~aM O£PARTM£MTS Ofl GRill1PS AFFECTED The employee Health Insurance Program covers all regular full-time and part- time employeet in all City departments, FISCAL IMPACT: If the Harris Methodist Plan 1s implemented on January I, 1991, the City's cost for employee health Insurance coverage would be reduced substantially from the proposed PALICO plan of 1220,32 Oar employee per month to the Harris Methodist Plan of 1192.50 per employee per month. The estimated difference for the City over what was budgeted in 1993/91 is 12019170 (and $121,603 In General Fund). lly submitted: Respec l 4 & L oyd V. Harrell City Manager I ~i October 26, 1993 City Council Report an Employed Health Insurance Page S Prepared by: Thomas M. Klinck, Director of Human Resources Approved: Betty H.Kean, Eae tivd Director municipal Servic and Economic Development ee~ltltl,t► IrIDII~d7 f0/!f/ N CITY OF DENTON REQUEST FOR BID BID NO. 1523 Health Insurance Program Due: September 24, 1993 L f ►ST G 46si IWS CA- i~r-'To2r q3v liv I r I v. e. i Ptoparedi 06/28/93 ICI ~I CITY OF DENfON Request for Bid for Group Medical TABLE O CONTENTS Paae Background and General Information . . . . . . . . . . . . . . 1 Scope of Specifications and Instructions . . . . . . . . . . . 2 Plan Njsumptions (Exhibit I) . . . . . . . . . . . . . . . . . 6 Bid Submission Form (Exhibit II) . . . . . . . . . . . . . 8 Current Schedule of Benefits (Exhibit III) . . . . . . . . . 12 Plan Experience (Exhibit IV) . . . . . . . . . . . . . . . . 16 Carrier/Underwriter Profile (Exhibit V) . . . . . . . . . . . 21 Census Data (Exhibit VI) . . . . . . . . . . . . . . . . . . 22 AAA01836 I u BACKGROUND AND GENERAL INFORINIATiON The City of Denton is a city of 68,000 population and was incorporated in 1866. Denton is located approximately 40 miles north of Dallas and Fort North. It sits at the apex of a triangle that encompasses the Dallas-Fort North metropolitan area. Although it benefits from the forward thrust and continuous expansion of the largest Consolidated Metropolitan Statistical Area in the state, Denton and its economy stand proudly independent. The City of Denton has a work force of approximately 850 employees. The city has had an effective safety and risk management program since 1570. The services the City provide consist of law enforcement, fire safety, patlmedics/rescue, refuse collection, sanitary landfill, electric, water, sanitary sewer, storm sewer, animal control, parks/recreation, library and airport. In general, we are a full-service city; however, there is no city hospital or rest home. Two major universities University of North Texas and Texas woman's University along with a fully accredited public school system, allow local citizens every educational advantage possible and a rich blend of cultures. The eastern and western branches of Interstate Highway 35 meet in Denton, making it conveniently accessible to everything in Dallas and Fort Worth. Denton offers worlds of opportunities to the prospective developer, business person or industrialist. Texas Instruments has a plant here and other industries are expanding. Any questions regarding the city's current health plan or this bid should be directed to Ike Obi 'at (817) 566-8340. Questions concerning the bid submittal should be directed to Tom Shaw at (817) 383-7100. MA01A36 -1- i } SCOPE OF SPECEFTCATIONS & INSTRUCTIONS The city will entertain proposals on fully insured managed care plan basis. The specifications contained herein will encompass Network Only and Non-Network Plans. since we are presently evaluating options to reduce our cost, we are seeking optional quotes on plans designed to achieve this. We, in essence, urge innovative approaches to health care coverage. The City of Denton is seeking an insurance olio agreement to become effective January 1, 1994, for a minimum of one (1) year. The policy shall provide, if not cancelled prior to December 31, 1994 in accordance with the terms of the policy/agreement, bid submission form, and/or request for bidders, for the renewal of this policy for two (2) successive twelve (12) month periods, thereafter subject to the renegotiation of the terms of this policy, if City Manager and insurance company agree, without the necessity of rebidding this insurance proposal as long as the cost of insurance during either the first or second twelve (12) month successive period does not increase more than 301 and the plan design benefits do not decrease more than Sot. However, this proposal may be terminated if insurance company and City are unable to agree in writing to a mutually agreeable plan design and insurance cost no later than seventy-five (75) days prior to the end of the preceding period. The City is interested in a fully insured managed care proposal. The instructions contained herein apply to all sections; otherwise, each section can stand alone, or be a part of a partial or total package. Although the city is interested in packaging these coverages, for a number of reasons, it is understood that all coverages contained within these specifications cannot necessarily be incorporated into a single policy, either because of Texas law, or because some of the coverages do not lend themselves to that procedure. The City i•i allowing for the possibility that some agencies or underwriters would prefer not, or be unable, to quote all coverages in these specifications and will not place packaging over another alternative which is clearly beneficial to the City and the taxpayers. The City will also accept and encourage innovative and alternative methods of pricing and coverage of risks so long as they do not violats Texas law; however, exceptions must be noted and made in addition to the specifications, which should be adhered to for the purpose of proper comparison, and all such variations must be clearly detailed, including advantages claimed to be gained thereby. Please review the entire scope of specifications, instructions, and the specification package carefully before submitting quotations. i vnFk~E A J10V C,t2t~et% A 10 '('f1te`l`. ! ~ 1LbT~ I e~ ~bu R ~k ~1 Lt r,~i'e'Nys ~o Ise ry~j Y~ ~~s tit . L ewer ti 3 b Scope of Specifications 6 Instructions Conflicts Between Request for Bid and Bid Should a conflict arise between the terms and provisions of this request for bid and the bid of the insurance company (which includes insurance policies, insurance agreement, etc.) the terms and provisions of this request for bid will prevail. rgcontestability Provisions Are InaoRlicable City and Bidders agree that if a conflict arises relating to an interpretation or meaning of the terms and provisions of city's request for bid and the bid of the insurance company (which includes insurance policy and insurance agreement, etc.) such conflict will not be resolved through arbitration or be waived by the parties, but will be resolved by judicial review in the courts in Denton County, Texas. Quay of Carrier In order for bids to be compared on an identical basis, it is necessary that all portions of the document, including requests for specific information about coverage, ratings, services, forms and general information regarding the carrier, be completed and adhered to. Carriers participating in this process must guarantee that these specifications will be used in their pressitations to their underwriters without modification. For purposes of comparison, it is important that quotations be submitted on this bid form (see Exhibit II). Any amendments or innovations must be submitted by addendum to this specific package and so noted. Sample insurance policies and insurance agreements, including endorsements, must be submitted with all quotations. Commitments in writing from underwriters and re-Insurers are also required as a part of the quotations. Any carrier which is unable or unwilling to meet the specifications shall so state (with a full explanation) and detail the coverages affected, whether or not adversely, in a supplementary latter to be attached to the submitted quotation, specifically noted and made a part thereof. yndarwriters' Qualifications All carriers must be licensed to do business in the State of Texas and maintain a BEST's Insurance Guide rating of at least A (excellent). Exhibit V must also be completed. Caveat Although every effort has been made to provide accurate and up-to-date information, companies supplying quotations should :ontact the City for any questions that you might have. AAH01616 -3- T scope of Specifications i Instructions Contract dticulation Any carrier chosen by the City of Denton will be required to cover all eligible employees of the City that are currently covered regardless of whether they are actively at work or not. Additionally, the carrier must provide coverage equal to the coverage supplied existing employees, to both former employees and deceased employees and their families as required by law, and including, but not limited to, Texas Senate Bills 97 and 404 passed during the 1993 legislative session. The City is subject to the provisions of the Consolidated OMNIBUS Budget Reconciliation Act of 1986 (COBRA). Proposals must conform to this law. Administration The successful bidder will be required to perform all necessary administrative functions in order to effectively manage the benefit plans and to comply with prevailing laws and regulations. These functions include, but are not limited to, the issuing of booklets, Certificates of Insurance, I.D. cards and master policies as well as providing for claims auditing and processing, computer- generated experience reporting at least quarterly, enrollment materials, claim forms, and conversion forms. All costs associated with the provision of such services must be included in the rates and reflected within the retention illustration. The City also desires representatives from the selected carrier to be available to conduct large group meetings if deemed necessary. criteria for Bin selection The award of the contract will not be based on cost alone. The city will evaluate the bids on rates as well as the following: 1. Claims processing capabilities 2. Contractual requirement (i.e., billing etc.) 3. Ability or willingness to make a timely, accurate and inexpensive transition with current carrier. - 4. Ability to service contracts. S. Bidder's financial stability. 6. Ability to provide claims data in the forms necessary to track the performance of the plan. 7. Full text of insurance policy and insurance agreement you are bidding. Times and Locations for Filing ouotations Quotations shall be considered irrevocable for ninety (90) days, and the City of Denton reserves the right to accept or reject any or all quotations and waive my informalities in any quotation. Note: Bidder should provide an explanation for all items giving as much information as possible, including a transition plan samples of claims reports, and other information. AAA01836 -4- I q+C>fi ~ Scope of Specifications i instructions Request for detailed specifications, loss experiences, and questions should be directed to Ike Obi, City of Denton at (817) 566-8310. All quotations must be submitted with two copies (in a sealed envelope, clearly marked "Insurance Quotations for the City of Denton, Texas") on or before September 21, 1993, at 2:00 p.m. to: Mr. Tom Shaw Purchasing Department Service Center 901 8 Texas Street Denton, Texas 76201 I i i AAA01816 _5_ M E M 0 R A N 0 U M TO: All Department Employees FROM: Lt. Joanie Housewriqht Sgt. Loyd Burns DATE: November 15, 1993 REF: Joint Meetings of the Wellness and Employee Insurance Committees As you may know, there was a joint meeting of the Wellness and Employee Insurance on Friday, November 12, 1993. Due to a lack of consensus on the issues, the meeting was reconvened on Monday, November 150 1993. At the meeting on Monday, the committees considered and voted on the following options. OPTION 1: Tom Klinck proposed that if an employee refused to participate in the health assessment, the city would contribute $178.50 to the employee's insurance premium and the employee would pay the remaining $10.00 per month. If the employee participated in the health assessment, the City would contribute the entire $188.50. If the employee is a tobacco user, the city will contribute the entire $188.50, but will give the employee -in additional $10.00 "insurance supplement" if they are not a tobacct.user regardless of the length of time they have not used tobacco. OPTION 2: The city would contribute the entire $188.50 for every employee. The City would then make a one-time payment to the employee when the employee participated in the health assessment. This payment was estimated at around $25.00. Employees would then be told at this year's open enrollment that insurance premium differential's could be attached to the 1995 insurance premiums. This would provide employees an opportunity to stop using tobacco and the committees time to come up with fair and effective incentives. This option also separates the wellness initiatives from your insurance premiums. Betty McKean took a vote regarding these options to determine which option would be presented to the Executive Staff tomorrow. The vote was 19 for Option 1 and 8 for option 2, with your representatives voting for Option 2. Therefore, she will take option 1 to the Executivo Staff. e ~~o e Loyd Burns Em~p yee Insurance Committee Wellness Committee DRAFT CITY OF DENTON CITY COUNCIL MINUTE October 26, 1993 The council convened into the Work Session on Tuesday, October 26, 1993 at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor rilo Tem Smith; Council Members Chew, Cott, Perry, and ABSENT: Council Member Brock 1. The Council convened into the Executive Session to discuss the following: A. Legal Matters Under TEX. GOVOT CODE Sec. 551.071 1. Considered action in Williams et al v. C:abrales. et al. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVIT CODE Sec. 551.074 2. The council received a report, held a discussion Insurance d gavstaff direction regarding the City Employees' Health Program for the plan year beginning January 1, 1994. Tom Klinck, Director for Human Resources, stated that purposes of his presentation would be to review the background/history of the planning session in June regarding health insurance, review the analysis of the health proposals received with the evaluation of each with respect to total plan costs, rate guarantee, the schedule of benefits, the network providers and service and administration issues. There would also be a staff recommendation. At the strategic planning session, it was a goal for the City to provide adequate and quality health care for employee and dependents at a cost which the employee and the City could afford. The renewal rate increase from Philadelphia Life Insurance s urdery which (PALICO) would had outlined several conditions PALICO renew its contract with the City and some of those were considered negative contingencies. Staff decided to re-bid the health plan to ensure the City had a back-up position in the event the negotiations with PALICO failed to guarantee a stable health insurance program during the 1994 plan year. Bids were received from Texas Municipal League with a rate of $223 for the employee cost, Blue Cross with a rate of $239 for employee cost, New York Life/Sanus with a rate of $261 for employee cost, Aetna with a cost of $151.38 for employee cost and Harris Methodist Plan with a cost of $188.50 for employee cost. The PALICO renewal rate would be gucost. aranteeEvaluation schedulef ofebebids nefits included network total $218.80 for the cost, rate employee providers, service and administration. The proposals of Aetna, PALICO and Harris Methodist were compared for benefits, coverages, 1 DRAFT City of Denton city council Minutes October 26, 1993 Page 2 and costs (co-pays, deductibles, out-of-pocket maximums, etc.) Looking at the City costs for the three programs, Aetna would be at a lower cost for the organization at $1 million, PALICO would have $1.5 million in City costs, and Harris Methodist at $1.3 million. Palico, compared to Aetna on employee costs, was approximately $180,000 more because the rates for dependent coverage were loaded high in that plan. The Harris Methodist dependent rates were $1450000 less in the 9 remaining months for employee costs. In looking at total plan costs considering what both the employee would pay and what the City would pay, PALICO was approximately $2.2 million, Aetna was $2.2 million and Harris Methodist was $1.9 million. From a cost perspective, the Aetna proposal would save the City $400,000 but the employees would be required to pay an additional $180,000 which was detrimental to them. With the current individual rates with PALICO, the employee paid $11.50, for spouse coverage they paid $123, child coverage was $80 and family coverage was $150. In Aetna's Plan III compared to the PALICO proposal, the employee would pay a higher amount than under the PALICO rates as the rates were higher for family coverage. With the Plan One design, the employee would pay significantly more than with PALICO. On the Harris Methodist plan there would be a reduction over what the employees would be paying on the PALICO plan in all categories in the HMO only and on the indemnity plan there was a $10-15 additional cost over what they would be paying and lower family costs. In looking at total plan costs, the City could save with the Harris Methodist plan over what it was currently paying with PALICO by approximately $10,000 and over what was proposed would save approximately $130,000. With the 14% which was left in the budget, there would be a $200,000 lower cost to the organization. PALICO's renewal rates were guaranteed for 12 months, the Aetna quoted rates were guaranteed for 12 months. However, with the Harris quote of 12 months they also agreed to a contract provision that the increase would not exceed 15% on the HMO plan through the year 1996. That would be a 9.9% maximum increase the next year and the following year would be no more than 15%. This would help control and budget costs over the next several years. Dave Palatiere, Coopers 6 Lybrand, presented a history of the negotiations involving the shared risk arrangement with the hospitals and doctors. When looking at the schedule of benefits, the PAL'1CO proposal would have higher co-pays, deductibles, and out-of-pocket maximums. There was a $50 diagnostic co-pay, a $150 drug deductible, employee referrals, and one plan with no choices. This would be the first year that the employee would be required to go through a referral process in order to see a specialist which would be the employee's responsibility to get permission to do so. An employee could not go to a specialist unless he was given DRAFT City of Denton City Council Minutes October 26, 1993 Page 3 permission to do so by an outside agency. The Aetna plan had reasonable co-pays, deductibles and out-of-pocket maximum's plus an option to select from a high or low plan. Selected doctors would handle referrals to specialists, there was only one local pharmacy with no mail order service available and no mental health providers except in the network. With the Harris Methodist plan there were reasonable co-pays, deductibles and out-of-pocket maximums with an option to select from a high or low plan, the employee's selected doctor would handle referrals to specialists, a $10 co-pay for drugs with a mail order service available and an in-Denton representative to assist with questions and problems. The higher plan was a point of service plan which meant that the employees had the flexibility to use any doctor they wanted. Employees could use Denton Regional or any other hospital but would pay more if they used a non-network hospital. Mayor Castleberry asked about the additional costs associated with that option. Palatiere replied that there would be a $500 deductil,le and the co- insurance was a 70/30 payment up.to $4,000. Mayor Castleberry indicated that City employees had used Denton Regional more than HCA. He asked how both hospitals could be made available to them under the Harris Methodist plan. Palatiere indicated that he had addressed that issue with Harris Methodist. They acknowledged the preference and utilization for Denton Regional in the employee population and were agreeetile to working with Denton Regional to make an arrangement. At this point in time there was no written contract but would work toward a relationship with Denton Regional. Klinck indicated that some type of letter of understanding or a contract amendment provision would be signed in which Harris Methodist would agree to look at additional hospitals and providers. Council member Miller expressed concern regarding entering into a three year contract with a letter agreeing to study the issue. Three years was a long time. Klinck indicated that the City would not be locked into a second or third year contract. Council Member Miller stated that in a community of Denton's size, to lock in only one hospital for an employee group of this size and the fact that the group was the City responsible to the citizens of R I a DRAFT City of Denton City Council Minutes October 26, 1993 Page 4 the community, was a difficult situation. Both hospitals had expanded in this community and to have an organization split this care put the City in a difficult position. Palatiere replied that Harris Methodist had expressed a commitment to work with Denton Regional but he could not tell the Council that there was a contract signed with Denton Regional Hospital. Council Member Perry felt that an issue to consider was that both hospitals had an opportunity and Denton Regional had an edge over HCA. The City was looking at a matter of reasonable costs for a health plan to City employees which they could afford. He felt there was a natural balance for preference and that the employees would insist on doctors which would keep negotiations moving. this was a matter of cost and reasonable care. Council Member Miller felt that an alternattve was to offer the came opportunity to both hospitals. Harts Health Care had selected HCA but he felt that if Dent Regional was willing to provide the care at the same cost, it should be made available. Council Member Chew felt that Denton Regional might not go with same price structure. Mary Pat Blagg, Harris Methodist, stated that talks and negotiations were on going. Bob Hurst, Director of Sales for Harris Methodist, stated that Harris Methodist had established this program with HCA prior to the city proposal. Harris Methodist made partnership commitments with its providers and on an ongoing basis was looking to see what was needed to stay ahead of the curve and to be the plan of choice in the community they served. Harris Methodist was looking for long term relationships with its providers. Harris Methodist would continue to assess on an on-going basis what was needed for its program. Mayor Pro Tem Smith stated that Harris Methodist would continue to try to work with Denton Regional and get it on line. Hurst replied that Harris Methodist was open to new providers and was not shutting any doors at this time. Council Member Miller asked if other providers would be an addendum to the contract. Xlinck stated that a letter of agreement or understanding or a contract amendment would be provided in writing which would s a DRAFT City of Denton City Council Minutes October 26, 1993 Page 5 indicate that Harris Methodist was being responsive to additional providers/hospitals. For any kind of managed care program there was a balance between the number of providers and the utilization issue. Palatiere stated that with the PALICO plan there were 40 primary care physicians, 60 specialists, both hospitals, 5 pharmacies including independents, referrals to specialists would be the employee's responsibility through Cost Care. Managed health care had to be tied in with the cost structure. The more providers there were and/or the more hospitals, the higher the costs. Council Member Cott asked if it were more costly on a unit basis or on a total basis. Palatiere asked if he were referring to a unit per employee per year. Council Member Cott stated that the City now offered a certain menu of service and because it was expanded, was that menu now more costly or was it more costly because of more providers. Palatiere replied it appeared to be more on the provider issue. An HMO unit cost was a per member per month basis. The unit cost on an HMO basis was lower than a unit cost on a point of service basis wi,ich was the current plan because when a hospital or provider was used, all employees would be using that facility or doctor. There was a leverage to have lower per diems, better risk contracts and the physicians would take a lower fee schedule because they would have more volume. As the network providers were expanded, there was less leverage which would result in higher costs. Unit costs under a managed care progritm would be lover than an indemnity program, Council Member Miller state that last year there was no control on which provider to go to. Two providers for hospitals would be different than if there were five or ten. He felt there was a degree factor involved. Klinck repiied that a factor to consider was the number of individuals servicing. Council Member Miller asked if another provider would have to be willing to agree to the same fee schedule. Klinck replied that there was a difference when there was an exclusive arrangement. The volume was diminished to ar.y one hospita. when there was more than one on the plan. s City of Denton City Council Minutes DRAFT October 26, 1993 Page 6 Palatiere stated that the hospital would lose volume in the number of patients and would not get the same level of contract with MCA and match with Denton Regional. City Manager Harrell stated that if the city were on a self-insured program, it could make those negotiations. This was for a fully- insured health program. From a staff level, it was felt that there would be an issue because only one of two hospitals was included in what appeared to be the best bid. That was what was communicated to Harris. This might have to be worked out from a system standpoint. It was difficult to not look at the dif,:-rence in the costs with PALICO to stay with both hospitals, was not a recresponsible to Har is recommendation try other add than Regionals strong Council Member Perry asked if Council accepted this plan, would it automatically prevent employees from using Denton Regional. Council Member Miller stated that they would be able to use Denton Regional but would not have the same coverage. He questioned if the issued had bren raised and was not satisfied that it had been done completely. Hurst stated that Harris Methodist was not an insurance company. It had started out as a hospital system and had now changed to a provider for financing, management and providing health care. They were in a partneLship with the doctor groups and hospitals, Palatiere stated that Aetna had 21 primary care physicians, 70 onl independents, and hre errals lto sp cialistone s throe h primary with re physicians. 9 primary care Council Member Perry stated that he liked the feature of the primary care physician as the source of referral to a specialist. He felt it added quality to the program. Palatiere stated that the Harris plan had 1.6 primary care physicians, 30 specialists, Denton HCA hospital, four pharmacies plus independents. There was a strong commitment to working out an a rrangement with Denton Regional. In the area of administration servi and ims balance billing,+over all responsiveness andsserviceaon theacurrent contract. PALICO had no in-Denton representative. In discussions w ith the Aetna service, there were some concerns expressed with service on-oing commitment ndtoadtheisDentonn,communityconcerns andabout hadtheir representative. DRAFT City of Denton City Council Minutes October 26, 1993 Page 7 Council Member Perry felt that it was difficult when the provider was away and not active in the community and committed to the community. No personal contact was difficult. Palatiere stated that the Harris references were very complimentary of service with follow-through and a willingness to service employees, dependents and providers. They had an in-Denton representative and were involved with the community. Klinck stated that the recommendation was to change to the Harris Methodist plan which was the lowest overall plan cost, lowest cost for dependents, a superior plan design, the doctors and other providers were stable and Denton established, would improve the ability to budget, control and manage long-term health costs, the plan was endorsed by the Employee insurance Committee and Executive Committee, had an in-Denton representative, and very positive references. Council Member Perry asked if there were any plans to expand the mental health providers as there were only four currently on the plan. Blagg replied that this issue had been discussed and they were looking to add additional providers. Council Member Miller stated that he felt good about the proposal from a cost standpoint. He asked that Harris Methodist continue to study the possibility of including an additional hospital. Hurst stated that there were three more primary care physicians who would be added to the plan as soon is the contracts were returned. Council Member Chew felt that the rate with PALICO was originally too low and that they had not looked at the census. The service with Aetna was very poor and felt that this was an excellent program. There was a need to try and get the additional hospital on the plan. The proposal would be a good savings to the City and to the employees. Mayor Pro Tem Smith agreed vith Council Member Chew that this was a fine plan and that Harris Methodist should try to add the other hospital and more providers. Mayor Castleberry indicated that the consensus of the Council was to move ahead with the Harris Methodist plan including the letter of intent for additional providers and an additional hospital. I I C DRAFT City of Denton City Council Minutes October 26, 1993 Page 8 2. The Council received a report, held a discussion and gave staff direc*ion regarding the City's Wellness Program for employees. Tom Klinck, Director of Human Resources, stated that council authorized the implementation of a wellness program in 1993-94. It was felt that the most impact would be to have a health risk assessment and direct those activities so that over the long term it would be known where the City stood as an organization. The purpose of the Employee Wellness Program was to provide health awareness and education, participation in a wellness program, encourage non-tobacco use and funding for the program. The assessment would gather demographics as far as age, gender, history, eating habits, exercise, stress, etc., and provide health screening in the areas of resting blood pressure, blood chemistry, body fat, etc. From that assessment an individual would be given a confidential report on his current status and a recommendation on how to improve himself. The City would received a comprehensive report profile on the entire work force and recommendations on where to focus the wellness issues. The health awareness/ education program would include information on smoking cessation, nutrition, physical fitness, stress management and exercise. The health risk assessment would provide a better picture of the employee organization and the information would benefit both the employee and the City and might give the employees a chance to make changes for healthier lifestyles and potentially lower health claims. If an employee chose to participate in the program, they would be rewarded with an additional $30 per month contribution for the health insurance premium. If an employee did not participate, the contribution would be less and the employee would pay a higher premium. Council Member Miller stated that medical plan was a $18d which the city would pay. What was really being done was to penalize people who did not participate in wellness. Council Member Cott stated that if the City were involved with such a program and had knowledge that there was a person outside of health who was not willing to be involved and if he were to die, what would be the City's liability. Mike Hucek, Assistant City Attorney, stated that such a scenario would be in perhaps a fire department and such a claim would be handled as a workers compensation claim. Council Member Cott suggested that the City should make sure it was legal to do this. I • t DRAFT City of Denton City Council Minutes October 26, 1993 Page 9 Mayor Castleberry asked if this were a voluntary program. Klinck stated that the contribution that the City would make would be tied to an employee's risk to health claim costs. Bucek stated that the normal approach would be if there were a confidential statement regarding a health risk and accommodations had to be made, the employee would need to notify the City and that would have to be worked through. I Council Member Cott stated that because the City would be organizing, arranging, and managing the process there might be a problem. Council Member Perry stated that the City would pay $188 per employee and if that employee did not participate in the wellness program and used tobacco, it would pay $168. City Manager Harrell stated that the City did not have to pay $188 per employee. The recommendation through the wellness Committee was to set the base participation rate at $168. If an employee was willing to take the health assessment, the city would contribute another $10 and if the employee were a nonsmoker, the City would contribute another $10 which would raise the City contribution to $188. Klinck stated that the 1993-94 budget had funded $19,000 for the health risk assessment. It was projected that the assessment would cost $25 per employee for a total cost of $22,000. The educational program would cost an additional $14,000. Additional funding of $17,000 was needed to cover the difference. It was estimated that approximately 200 tobacco users would pay some additional premium and that money would go back into the City budget. Consensus of the Council was to proceed with the program. 4. The Council received a report, held a discussion and gave staff direction regarding amending the zoning ordinance. Due to a time constraint, this item was considered during the Regular Session. 5. The ^ouncil received a report, held a discussion and gave staff direction regarding code enforcement activities. Due to a time constraint, this item was considered during the Regular Session. TO: All Police Department Employees FROM: Officer Stalder DATE: November 3, 1993 SUBJECT: Additional $10.00 Monthly Fees for Tobacco Users and Non-Wellness Program Participants. I'm scheduled to speak to the City Council on November 16, 1993, at 7:00 p.m., regarding the above subject. If you disagree with the City charging you an extra $10.00 a month because you are a tobacco user, put your name and I.D. number below and check the box that applies to this. Also, if you are opposed to the City charging you $10.00 extra each month if you do not participate in the Wellness Program, check the box that ,.-)plies. If you are a tobacco user, please Check that box. NA.4E AND OPPOSED TO THE OPPOSED TO THE TOBACCO I.D. NU'XBER $10.00 MO. TOBACCO FEE $10.00 XO. SOS- USER 4- -TQ "4^ c"J WELLNESS PROGR:l.4 FE ✓ 3 STAgLbF2 # `?I ✓ k/ S I e t1 4 V-Lcr V 1 V V Vol ✓ /ar , is t1`I L T r t it 11, I IL 0142-A V v D, 1 aV% ` Vol' "L 7t I~ y N ~ r i T0: All Police Department Employees FROM: Officer Stalder DATE: November 3, 1993 SUBJECT: Additional $10.00 Monthly Fees for Tobacco Users and Non-Wellness Program Participants. I'm scheduled to speak to the City Council on November 16, 1993, at 7:00 p.m., regarding the above subject. If you disagree with the City charging you an extra $10.00 a month tecause you are a tobacco user, put your name and I.D. number below and check the box that applies to this. Also, if you are opposed to the City charging you $10.00 extra each month if you do not participate in the Wellness Program, check the box that applies. If you are a tobacco user, please check that box. SA4E AND OPPOSED TO THE OPPOSED 10 THE TOBACCO I.D. NUMBER $10.00 MO. TOBACCO FEE $10.00 MO. NON'- USER WELLNESS PROORA4 FEE biv C14" J.- Y \AX Z' No "td ' ~ 90 Z. y ~ ~ ls0 ~ /1 /t G' i 46 l~~'r11~ ~ • ~ L1 r TO: All Police Department Employees FROM: Officer Stalder DATE: November 3, 1993 SUBJECT: Additional $10.00 Monthly Fees for Tobacco Users and Non-wellness Program Participants. I'm scheduled to speak to the City Council on November 16, 1993, at 7:00 p.m., regarding the above subject. If you disagree with the City charging you an extra $10.00 a month because you are a tobacco user, put your name and I.D. number below and check the box that applies to this. Also, it you are opposed to the City.charging you $10.00 extra each month if you do not participate in the wellness Program, check the box that applies. If you are a tobacco user, please check that box. SAME AND OPPOSED TO Ti{E OPPOSED TO THE TOBACCO I.D. NLXBER $10100 !!0. TOBACCO FEE $10.00 KO. SON- USER WELLNESS PROGRA4 FEE z t •~C ~ 1 l1J ✓ / us n N. l ion Y DENTON POLICE DEPARTMENT NCA' ON FCP FOLLC'4'. N. PEPC P OFFENSE ARF EST T L; i ✓ 1 4 K Z 4 a 4 .r 1 cEe~N.Ed'~Y':4 aCaCN T1~.14R 01C[4 OTnE4 OlfiCi• 1• Y'4 ii! a0C e TO: FROM: DATE: November 3, 1993 SUBJECT: Additional 110.00 Monthly Fees for Tobacco Users and Non-Wellness Program Participants. If you disagree with the City charging you an extra $10.00 a month because you are a tobacco user, put your name and I.D. number below and check the box that applies to this. Also, if you are opposed to the City charging you $10.00 extra each month if you do not participate in the Wellness Program, check the box that applies. It you are a tobacco user, please check tthat box. NAME AND OPPOSED TO THE OPPOSED TO THE TOBACCO L.D. S'CMBER 110.00 MO. TOBACCO FEE tIO.00 MO. NON- USFR .ELLNESS PROGRAM FEE T~ ✓ r K .1 A Ail F ✓ e/ 1. t•4' ` .yt.i - V ( ,.tom • , . L .62 r7 Vim, ✓ t Jo C_. - i J r= ~ 3 n 1 Z L e ~ ~ I rr-~ ~ I r• t L 2 t S~ n ~ 1. 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