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HomeMy WebLinkAbout01-23-1996 S S I 1 CITY COUNCIL AGENDA PACKET January 23, 1996 l i 4WAft O .n. AGENDA APMN CITY OF DENTON CITY COUNCIL ~ January 23, 1996 00- Closed Meeting of the City of Denton City Council on Tuesday, January 23, 1996 at 5:15 p.m. in the Civil Defense Room of City hall, 215 E. McKinney, Denton, Texas, at which the following items will be considered: NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO CLOSED MEETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. 1. Closed Meeting: V A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Consider and discuss defense of and the settlement of RPS Ventures. Inc., et al v City of Denton and Webber and Barnes v. City of Denton pending in the 362nd District Court under Suction 551.071 of the Open Meetings Act. B. Real Estate Under TEX. COVIT CODE Sec. 5j1.072 C. Personnel/Board Appoinkments Under TEX. GOVT CODE Sec. 551.074 Work Session of the Denton City Council on Tuesday, January 23, 1996 at 5:30 p.m. In the City Council Chambers of City Hall, 215 E. McKinney, Denton, Texas, at which the following items will be considered: 5:30 p.m. 1. Receive a report, hold a discussion, and provide direction regarding the Economic Development Transition Committee recommendations. 2. Consider and give staff direction on continuing the waiver policy for the Parks and Recreation programs. 3. Receive a report from the Parks and Recreation Department on the I.M.A.G.I.N.E. program and view video. 4. Receive a report and hold a discussion regarding the 1996-97 City Council budget priority questionnaire. Following the completion of the Work Session, the Council will convene into a Special Called Session at which the following item will be considered: 1. Consider approval of a resolution authorizing the City Manager to execute an agreement with the Department of Transportation, United States of America, for a grant under the Urban Mass Transportation Act of 1964, as amended. City of Denton City Council Agenda January 23, 1996 Awls 00o Page 2 2. Consider adoption of an ordinance permitting and regulating the construction, maintenance and use of a long distance telecommunications system by Worldcom Network Services, Inc. across, over and under certain highways and public rights-of- way of the City of Denton. 3. Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of materials, equipment, supplies or services. 4. Consider adoption of an ordinance awarding a contract for the purchase of materials, equipment, supplies or services by the State Purchasing General Service Commission. 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 , 1996 at o'clock (a.m.) (P.m.) CITY SECRETARY NOTE: 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. A00002E2 1 f r ~i RECOUNIENDAT1ON of the Economic Development Transition Committee to the Mayor and City Council of the City of Denton and the Denton Chamber of Commerce i Pursuant to the charge as defined in Ordinance No. 95-157 of the City of Denton, dated 15 August, 1995, the Economic Development Transition Committee makes the following recommendation concerning the sustained funding and operation of Denton's economic development programs. The Economic Development Transition Committee unanimously adopted this recommendation following meetings held during the month of November (and December) 1995. Recommendation It is the recommendation of the Economic Development Transition Committee that the City of Denton call and conduct an election on August 10. 1996, which is one of the uniform election dates. The purpose of the election would be to consider the adoption of a sales and use tax at the rate of one-half percent and would have the following baEct language: "The adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of .4 of ore percent," t Basis for Recommendation As Denton looks forward to the next century, it is critical that plans and programs be pursued within the overall context of economic changes that are now, occurring in the state as we!] as the nation. The economic future of Denton is tied directly to these developments and the changes underwav are dramatic enough that traditional approaches to economic development will not suffice. ZVety thinking, new initiatives and new commitments are recuired. I + i Agcnda I;o. -•x3-96_ To proceed with the effort to establish new economic strength and p~qc, i it Denton have sustained funding for economic development programming. The Economic Development Transition Committee's recommendation for a locally imposed sales tax dedicated to economic development was formulated after a review of a variety of studies, reports, visits and assessments of other Texas cities' economic development funding sources. The prime factors which formed the basis of our recommendation are: 1). The most significant change that has occurred, and one that has revolutionized the way economic development is funded and conducted, is the authority which allows certain Texas cities to approve a sales tax to fund economic development. This authority was approved by the Texas legislature in 1989 and has resulted in 249 Texas cities passing the local option election. Cities near Denton with the 4A Economic Development Sales Tax are listed in Appendix A. Also, listed in Appendix B are al] cities that currently collect over $I million annually, 2). Recommendation of the PHH Fantus Study, November 1994: "PHH Fantus Consulting recommends that Denton consider adopting the economic development sales tax and raising the local sales tax one-half cent, as allowed under law, and to earmark the revenue generate strictly for economic development activities 3). Recommendation of the Vision Denton Work Action Team: "We looked at several ways in which we could finance development But the one option we feel really offers the most flexibility and will allow us to be able to accomplish our goals is the half-cent sales tax." 4). Primarily the 4A sales tax revenues could be used by Denton to create and maintain jobs and job opportunities. Other Texas cities have used this revenue source for such activities as: job training and retraining; financial incentives to attract new operations and to expand local industries; marketing and promotion. and, providing infrastructure such as water/sewer lines and road access to industrial plants and business parks. 5). The sales tax revenues could also be used to expand and diversify the tar bare which translates into lower tax rates and improved services and amenities for all Denton ci•izens and businesses. For the above reasons, the Economic Development Transition Committee selected the dedicated sales tax as authorized in Section 4A, Article 5190.6, Revised Civil Statutes of Texas as the best source of sustained funding. Passage of the 4A sale tax at a rate of IA of one percent would raise an estimated $2.7 million annually which would be administered by a city chartered not-for-profit corporation and a council appointed board of rive individuals. ~ I 4 t t ~MOIA ~II~A~' ApanW No. We, the undersigred, comprising the Economic Development Tra sition Commit wQ4 to the charge referenced above, respectfully submit this recommen anon. tiv Harry G. III- , Chair Troy La rove Carl Anderson Bill Patterson -P, I. /P I L-- /J"- - - Bob Copley Ed Smith hard Hayes Date I 1 I 3 i s- I I T AWda ft Acivida lurk Points for Backup Consideration two- 9(a • Members of EDTC personally visited 7 communities known to have successful economic development organizations: • • Allen * Frisco * Harlingen *Terrell * Brownsville * Garland * McKinney • Well-known and very respected consultant presented insights on organization and funding data for many other economic development groups. • PHH Fantus and Vision reports were used as guides when consideration given to recommendations. • Denton competes with 250 other economic development sales tax organizations within the state alone. We also compete with communities that have well established, fully developed private sector industrial and business parks. Aggressive developers who are willing to invest money in infill areas of the metroplex make the competition even more difficult. • Due to this competition, li= and mone are critical to Denton in becoming a player in metroplex economic development circles. • The private sector and City Public Utilities Board have been carrying the load for a program that allows limited marketing and minimal financial assistance for new and taistir 3 business. We must now become more aggressive in both arenas. • The best way to do this is to call an election for passage of a half-cent 4A economic development sales tax in August 1996. - Sales tar will provide funds for assisting private sector development. - Allow for an aggressive marketing program. - August recommended because of the strength of the current economy and prospect activity. Much is currently happening and who knows how long things will continue as they are. - 4A is recommended after weighing the benefits of each type organization against the recommendations of Vision and the Fantus report. The City has a comprehensive CIP for the future. We feel the most important thing economic development can do for Denton is to increase capital investment and create jobs. The 4A organization assures that the monies collected are used for those purposes. J AgMdi N0. 4 ^ 76 pendo Item Appendix A _l NEARBY,CITIES THAT HAVE PASSED..... THE dA E6ONO~IIC DEVELOPMENT SALES TAX City °o of 5D Sates Tar Estimated 4A Revenue Alen h 869,581 Commerce 'h 225,000 Decatur 'h 361,347 Frisco 'h 413,591 Kaufman 'h 192,000 Lancaster 'A 968,077 Little Elm h 33,097 McKianey 'h 1,425,523 Melissa 'h 45,403 Mt. Pleasant 'r+ 637,356 Pans 759,035 Sherman '.4 1,865,291 Terrell h 795,880 Wylie 'o4 224.323 4 II s 170 apenf~ r:n a.lzf(o- _ Appendix B Survey Results:- September 1995 4A CITIES THAT COLLECT MORE THAN $1<.MILLION City % Collected Estimated Revenues 199495 Amarillo h $8,500,000 Abilene h 4,900,000 Brownsville 'h 31500,000 Harlingen 'h 3,000 000 Longview !i 2,600,000 McKinney 'h 1,500,000 Sugar Egad 1.4 1,165,890 Pharr h 11050,000 Marshall h 1,000 000 i 5 a 4 ° rz ,5F ) X n"' Yl = o} of f '4T d , t COMPARISON OR; S1T SE1bEQ P`~iCTQRS r e u s e 3 Fv `a} ,Vy Y f0 i V Rs L r: I N n~a F+l~ 9 L. t o N ~ s. ~•r.M:. ;t r+; ~A?><~,-wf.~• J!+ s Ki: "s rw *r r ' '~X r 3 ' y Y~f A ,a y" . i y' Es+ r: 1 t .~{rtr 1S f ~ r ~ <f Fq a ~ z'Af .R♦ Il;lv_~ IL~j ~ .`rR ~v ' ' f~~''e P z .cy w~'a f 361 Y ~ f ~ t~R ".M h R~ r 3d MI, i `~,J , ✓ `c ~ ~f. p Jkn M , ~ttf b F r Y < 'E f r*e 43 E a cra, 4y~~ ~xw f L 7 I 'a~ 'K3a!~. •OT $ ,.a~ ~~'.f~ 2n r,f 1994 Ranking Factor First Year Collected Percent Change 1 highway Accessibility 1986 7.1 2 Labor Costs 1986 -3.1 3 Energy Availability and Cost 1987 7.6 4 Availability of Skilled Labor 1986 7.1 5 State and Local Incentives 1986 9.7 6 Environmental Regulations 1989 9.7 7 Tax Exempticns 1986 10.0 8 Occupancy or Construction Costs 1990 -1.2 9 Telecom muiication Services 1988 18.6 ~n 10 Availability of Land 1986 -1.3 ; Source: Area Development, December 1994 , t i J I V A x„t b' { A .f<rct t Y"'wr,: *y s'~~ i'1 7~r 4 •u6~"}~3e4 'CS+'~'. `'{y~ , o 'den < N p y~ /~w aYe "!!X ~ 1. , v~o- .,~b.W.6: M' ~ M2}~.~~'f ~ R•;' Factor Percent Change I. Telecommunication servicesM 18.6 2. Recreational opportunities 18.0 I Availability of long-term financing 16.4 4. Worker/technical training programs 15.2 5. Waterway/ocean port accessibility 12,1 b. Accessibility to major airport 10.7 X11 Data first collected in 1988 Source: Area Development, December 1994 1 I DCIIING `SNxy~' YUS; ;a s gcx ..s A ' :.3~va Factor Percent Change 1. Colleges and universities in area -13,7 2. Nearness to major markets -5.3 3. Labor costs -3.1 4. Right-to-work statOl -2.0 5. Housing avai!ability - 1.9 6. Availability of land - 1,3 Data first collected in 1988 Source: Area Development, Dcccokcr 1994 pI'7.r I r TYPES OF INCENTIVES Capital Subsidies: O erating SuhsidieR Financing of land, building Training of employees Financing of equipment and machinery Recruiting, screening of employees Interest subsidies Tax credits Bond financing (taxable or non-taxable IRB's) Loan guarantees Infrastructure improvements Rebate relocation expenses Grants Reduction of permit fees Utility rate reductions Capital lax Tncentiv; Tax abatements on land and improvements Reran g_Tax Exem 'o Sales tax exemption Corporate income tax exemptions Accelerated depreciation Exemptions on inventories (Freeport) j Exemptions on raw materials Sales tax exemptions Enterprise Zone credits Sales tax exemptions on equipment W Accelerated depreciation Export exemptions t vv "ll, c ~'y A ~ J P ~j i!~J~• 9 ~YS bed>~'4a; 5~,~~k i >4rANVFncTURnvc oMc>1 LOCATIONS LOCATIONS Property Tax Abatements 87% 50% Work Force Training 83% 46% Below-market Bond Financing 40% 14% Reduces!-cost Land 403'0 14% rBelnw-market w-interest Loans 37% 18% Lease Rate 23 % 41 % ants 23% 9% e [and 20% 14% Reduced-cost Building 6% jE 27% , Free Building 335 _ Source: Conway Data Survey of Corporate Real Estate Executives, December 1992 • January 1993 I ! 1 f S F 11 CREATING A WIN-WIN `SITUATION WITH INCENTIVES INCENTIVE, S SHOULD BE: 1. Part of a Comprehensive Economic Development Strategy 2. Based on a business evaluation (due diligence) - that takes into consideration collateral value and ability to perform 3. Be supported by a cost/benefit analysis 4. Viewed as an investment 5. Designed to pay for themselves (if possible) 6. Negotiated 7. Minimize what the competition is doing 8. Part of a contract that prescribes the company's performance 9. Available to all firms that satisfy eligibility criteria ' 10. Targeted to firms in basic industries ti 11. Periodically monitored for performance/costs/benefits t ~ k.: t ff A ~ rw\'' L ~S 41 i•. , .A' Prix i ff <4 ..I ` a r 1 P~ 4 15, Y ~ 7 v e eta ` t ~ X41 ~3a ,7ytt 6 [ Tyr .fi ~ WWI; r ?4 X `aS,AA f., 6 ,e Y. to < ( w w , Ir V ~ n Y ~ 6 .t~,y T r` ~4'. "r'^'ff~#o tt~~a~yv PW iR"g t S v ,'5[+a # v ~ x H : \'S 'r~,w +t RN 4A' V G [ , \ tl ~'I tSi RS d~3,aV~. ° 'L 9 ~yafryr a. Z . Y` 9. ,3~ , k':f rap 3\, 'd k k x I T M" ia~+ ✓d.. >n ..u, .i J'f [ rsl .K3 ,.tw'a2 X.da?§ ~.r~i z..>~✓°a Y:'~.":: r E` 3 > <`P": ro E. F'undamenta! What To Do , 1. Success is dependent upon a comrrdtment to a long-range ❑ Develop a Strategic Economic Plan; formulate the road map [hat will guide vision, clear goals and objectives. Denton's economic development efforts. ❑ Develop an Economic Vision; determine what the desired economy of Denton should be 10 to 25 years from now. The Vision should be a consensus of the city's leadership and become shared within the community. ❑ Develop Realistic Goals and Objectives; appropriate and realistic goals encourage cooperation at team work. ❑ Target Industries and Businesses; focus your marketing efforts by selecting specific categories of business to attract and retain. 2. Responsibility, accountability and authority must be (3 Establish mission and role for all organizations Involved in economic explicit. development; this allows for the maximum utilizatioaof resources and focuses each organization on what it does best. 3. Orga• ions are most effective when concentrating on one ❑ Eliminate functions which are not thr.• core activity; determine what to keep, task, what to hand-off and what to abandon. 4. There .:ast be continuous and sustained involvement of the ❑ Meaningful programs of accomplishment attract leaders; The organisation top civic and business leaders. must address issues which: (1) impede your pr)gress and, (2) take advantage of your opportunities. 5. Economic development must be proactive rather than ❑ Adopt an aggressive posture; enable the organization to command the support reactive. and :evolvement of the community. t r r Y THE STRUCTURE OF LOCAL ECONOMIC DEVELOPMENT ORGANIZATIONS 1. Private Sector • Chambers of Commerce [501(c)(6) Tax Exempt Status} Industrial Committees Economic Development Committees • Industrial or Economic Development Foundations (Funds or Corporations) Not-for-Profit [501(c)(3) Tax Exempt Status: The business community underwrites programs to expand and attract business, not primarily for profit, but to protect and expand investment in the area. I Profit: Same as not-for-profit in concept, except have profit motive Louisville, KY - 1918 - began here Tyler, TX - 1944 - first one in Texas 2. Public Sector • Boards of City Development • 1987 - Constitutional Amendment - Economic Development becomes a public purpose r • The Development Corporation Act of 1979 4A - Sales Tax fcr Economic Development; not-for-profit corporation chartered by city; five-member board 4B - Arlington Stadium Bill; not-for-profit corporation chartered by city; seven-member board W • Section 380.001 - Local Government Code t t ) TYPICAL PROFILE OF LOCAL ECONOMIC DEVELOPMENT ORGANIZATIONS Private Sector Public Sector Funding Membership/Contributions Tax Revenues/CDBG Funds Governing Body Board elected by membership Board appointed Legal Form Non-Profit 501(c)(6) or 501(c)(3) Corporation Board /CommissionlCorpo ration Economic Development Functions Variety of functions Functions usually prescribed by law y I . Private sector confidence 1. Continuous funding It 2. Confidential negotiations 2. Access to government funds Operational Advantages 3. Less political 3. Access to incentives i 4. Program continuity 4. Broad support 5. Infrastructure improvements may be facilitated r ~ i r 4 r EST MA, ED° i T t •K R F Y i' REYRNCJ~S ➢ ~~N~~~Y ~2 M1k Ff. ~ Rate Revenue '/z % $29792,000 3/s % 220942000 % 123969000 698,000 S 'r r THE SALES TAX FOR ECONOMIC DEVELOPMENT: WHAT IT IS AND WHAT IT IS NOT 0 54 { L i F F Section 4A Amendment to, the Development Corporation Act of 1979 71st Legislature -1989 This amendment to the Development Corporation Act of 1979, allowed certain cities (known as 4A's) to hold local option elections to pass a sales tax to be used for economic development activities. Specifically, 4A allowed any city; (1) in a county of less than 500,000 population; (2) the new combined sales tax does not excee12%; and, (3) to hold a referendum that would allow a levy of up to 'b percent (now Vs, 1/, % or 'A percent) to fund a local industrial development authority (corporation) as long as the total local sales tax does not exceed 2 percent. If approved by the voters, the city would establish a not-fur-profit corporation and appoint a five-member board to administer the corporation and the sales tax revenues. The legislation allows the corporation: (1) to acquire buildings, land and equipment; (2) to pay the principal and interest on debt; (3) improve airports that are an integral pan of an industrial park; (4) make improvements to support waterborne commerce; and, (5) to use for other purposes that are in the best interest of the city. The original legislation stipulates that the corporation cannot: (1) spend more than 10 percent of the revenues for promotion purposes; (2) assume or pay principal or interest on debts that existed before corporation was formed; (3) the board cannot meet outside the city limits; or (4) cannot fund general purpose water and sewer projects. 1 $ The corporation may, however, provide water and sewer to benefit property acquired for a project having another purpose. A, Also, the Bill provides an escape clause by (1) either patting a sunset clause on the ballot or (2) allowing :0 percent or more of the registered I~ ,ti ! voters tq petition for an election to dissolve the corporation, or (3) the city council to call an election. 1{,`n C` 4 ~r ( ADVANTAGES OF, THE 4A SALES TAX FOR. ECONOMIC. DEVELOPMENT (1) Continuous funding for economic development programs. (2) Can access Texas Leverage Fund for up to $4 million loan. (3) Expenditures are controlled locally - program locally determined and implemented; red tape can virtually be eliminated. (4) Few legal restrictions on use of funds. (S) Can focus community commitments for economic development. (6) Funds can be used for retention and expansion of existing business. (7) Can be terminated at will of community. (8) Outsiders and non-property owners conrtibute part of the revenue. W I J) III z t DISADVANTAGES.OF THE 4A SALES TAX I+ OR ECONOMIC DEVELOPMENT (1) Increase in local sales tax. (2) Operations (negotiations) subject to Open Records and Meetings Laws. (3) Money may be more than needed for effective program. (4) Funds can be abused and not used properly. (5) Private sector funding and involvement may be reduced. i Advantage nr nis tue Traditional roles of organizations will be changed. F Section 4B Amendment to the Development Corporation. Act of 1979 (Arlington Stadium:Bill) 72nd Legislature -1991 This amendment to the Development Corporation Act of 1979, created a class of cities (known as 413's) and allowed these cities to hold a local option election to pass a sale tax for purposes as described below. The original legislation defines an eligible city as one that: (1) is eligible to adopt a sales tax under 4A and the new combined rate does not exceed 2%; (2) is in a county of 750,000 or more population; and (3) has a combined sales tax rate of not more than 7.25% and is not in a mass transit authority, to hold a referendum that would allow up to 1h percent. NOTE: Eligibility requirements have been changed by subsequent legislation. If approved by the voters, the city would establish a not-for-pr fit corporation and appoint a seven-member board to administer the corporation and the sales tax revenues. No more than four of the board members can be elected or appointed city officiLls and all must reside in the city limits. The legislation defines eligible projects as: land, buildings, equipment, facilities, and improvements found by the board to be required or suitable for use for professional and amateur purposes and events. It also includes: stadiums, ballparks, auditoriums, amphitheaters, concert hills, learning centers, parks and park facilities, open space improvements, municipal buildings, museums, exhibition facilities, and related store, restaurant, concession, and autom parking facilities, related area transportation facilities and other related improvements that enhance any of those items. The corporation may a1 pk for principal and interest on loans and bonds. l3 Other eligible uses include: recycling facilities, public safety facilities, street and roads, drainage and related improvements, demolition, general mur • pals owned improvements and other projects that contribute to the promotion or development of new or eapcnded business and to pay maintenanc operating costs with assisted projects, t The collection of the tax ceases when all bonds and other obligations of the corporation are retired. III ti 'MIMA'IZX COMPARISQI~j aF j „ , < g ' , 4A end Vo KLMIWING, 'R01GR.1AMS i ~01'C01I~ICYI3I0c a v7~r;~L k'i IX`. 3 ~'.Y f i, } 4A 46 Focus: The organization and funding of a sustained economic development Funding of various projects to include infrastruc- o,e needs and process business development activities (1) Cities in counties under 500,000 (1) Cities in counties over 750,000 Eligibility (2) Nava not reached local soles tax of more than 2% (2) Does not have a combined sales tax rate of 7.25% RcquiremcnW (3) Any city that meets 4A r:quirements Organization: Notdor-forCorporation Not-for-Profit Corporation - chord: Five-member board appointed and serves at council's pleasure (1) City Council appoints seven members for 2-year terms (2) Must live in city Funding: (4, 'f, '.'e, or 'h% sales tax 'A, s/s, or 'A% sales tar Programs: (1) Promotion limited In no more than 10% (1) Not specified (2) Cannot fund general water and sewer projects (2) Can fund general water and sewer projects (3) Can issue bands/debt (3) Can issue bonds/debt (4) Improve airpurts as an integral part of industrial park (4) Not specified (5) Make improvements to support water borne commerce (5) Not specified (6) Can use monies for administration and governance (6) Allow paying maintenance and opeIfor development purposes ) (7) Can contract with other orp wie. (ions (7) Not specified Termination: (1) Sunset provision on ballot When bonds or obligations are retired (2) Citizens petition to hold election (3) Council calls election I1 +fa en(,.pikJ t,y: "Me C.Cn,oiu„e (;wop I 4A & 4B CITIES BY COMPTROLLER'S REGION HICII PLAINS - HOR111WEST TEXAS 23 r METROPLEX UPPER EAST TEXAS WEST TEXAS 30- 147- 31 61- ~.S 10 25 SOUTHEAST UPPER RIO ORANGE TEXAS CENTRAL TEXAS 30 i - I SOUT1l1EXAS GULF COAST 1 ~ r t i CITIES HOLDING SALES TAX REFERENDUMS UNDER SECTIONS 4A AND 4B Page 1 Passed 4A (119) Abilene Cameron Edinburg Jasper McKinney Panhandle Silsbee Allen Canadian El Campo Kaufman Meadows Paris Snyder Amarillo Carthage FLlrftcld Kemah Melissa Pcnitas Sour Lake Athens Celina Ft. Stockton Kemp Memphis Perryton South Padre Island Baird Center Gilmer Kilgore Menard Pharr Stamford Bellmead Childress Gladcwalcr Kounlz Mercedes Progreso Sulphur Springs Belton Coleman Graham La Marque Mt. Pleasant Prosper Sweetwater Big Spring Commerce Hamlin Lamrsa Muleshoe Quansh Tatum Booker Copperas Cove Harlingen Lcvclland Munday Ranger Taylor Borger Crockett Haskell Lindalc N:.: Raymondville Terrell Brady Crowell Ilempslead Linden New Bo..on Red Oak Texas City Breckenridge Curey Henderson Little Elm Northlake Rio Grande City Tolar Bridgeport Dalhart Hereford Littlefield Olney Rotsn Vemon Brnwnfcld Decatur Hidalgo Longview Overton Rusk Wellington Brownsville Dc Karb Hillsboro Marble Falls Palatial Seguin Weslaco Brownwood Early Hitchcock Marshall Palmview Seven Points West Tawakoni Burnet Eastland Hooks Maud Pampa Shamrock Wills Point iFalyd dA (64) Aransas Pass Denison Greenville Kountte Mansfield New Braunfels Schertz Bowie Dumas Gun Barrel City Lamesa Marble Falls Newton Sinion Brady Eastland Haskell (3x) Lancaster McAllen (2x) Pampa Snyder Brenham Elgin Henderson League City (2x) McKinney Pars Sulphur Springs L g Clarksville Fairfield Henrietta Leonard Memphis Perryton The Colony Clear Lake Shores Ft. Stockton Hertford Levelland Midland Quanah Troup Cleburne Fricndswuod Holland Lockhart Mineola Rusk Tyler Conroe Galveston Jacksonville Lubbock Mo,vhans San Mgeln(2x) Victoria Corpus Chrisli Georgetown (2x) Kingsville Magnolia Nacogdoches Seguin Wichita Falls 1 DcSoto I L J f t CITIES HOLDING SALES TAX. REFERENDUMS . UNDER SECTIONS 4A' AND :4B . Page 2 Passed 4H (92) Arcola Clyde Friona Keller Montgomery Refugio Straws Arlington Conroe Gainesville Kerrville Mt. Vernon Richmond Teague Aspcrm nt Cotulla Galveston La Joys Navasota River Oaks Tomball Bastrop Cross Plains Grand Prairie Lake Jackson Nederland Roma Tye Bay City Dalworthington Gardens Grand Saline League City Ncedville Rosenberg Universal City Benbrook Duncanville Groom Liberty North Richland Hills Runaway Bay Van Rom Big Sandy Elgin Gruver Llano Oak Ridge North Sachse Venus Brenham Encinal Henrietta Lorene Olton San Benito Watagus Buffalo Euless Hill Country Village Los Fresnos Pantego San Jusn West Columbia Burleson Forest Hill Hurst Magnolia Pcsrland Santa Anna Westlake COCNIC Forney Jacksonville Mansfield Pittsburg Seagoville White Settlement Cisco Franklin Jefferson Merkel Port Isabel Sinlon Winfield Clarendon Frankston Junction Mission Portland Southlake Winnsboro Ovxn City iFa led SB (24) Allen Coppell Ennis Lancaster (2:) Lubbock Seagoville Bedford (2x) Crowley (2x) Fricndswood (2x) League City McAllen Watagua Cleburne Dallas Ilamikon Lewisville McGregor Wktitt ScnlcmCnl ~s Culleyvllle DeSuto Kingsville Lockhart Pasadena Wichita Falls t 3 J f.1 11 fJ 44 Passed 4A & 46 (I8) 7 Anson DeSolo Frisco La Feria Newton Sugar Land Atlanta Edcouch Hawley Lancaster Seabrook Sunnyvale 1 Cedar Hill Elsa Knox City New Braunfels Somerset Wylie Iu1 muiwt: 912W95 L EXAMPLES USES OF ECONOMIC (DEVELOPMENT; YUNDS. ALLEN ('h% 4A - annual revenue: $893,000) HARLINGEN ('fi% 4A - annual revenue: $2.9 million) • Financed 200-acre industrial park with $2.8 million Texas • Financed campus for Texas State Technical College Leverage Fund loan LONGVIEW % 4A - annual revenue: $2.6 million) AMARILLO ('A% 4A - annual revenue: $8 million) • Sold $7.5 million in bonds to finance 480-acre industrial park • Grants and interest free loans to 40 companies MOUNT VERNON ('/i % 4B - annual revenue: $77,000) BURGER ('i4% 4A - annual revenue: $580,000) • Funded legal fees and site preparation for Lowe's 880,000 • Bought building and funded operations of a Small Business square-foot distribution center Development Center and Incubator Program PARIS ('A% 4A - annual revenue: $625,000) BROWNSVILLE ('/4% 4A - annual revenue: $3.8 million) • Built 30,000 square foot building for company. Company • Provided grant to University of Texas at Brownsville for leases the building for five yeas with lease/purchase Engineering Facility agreement to buy. Goes on tax rolls at $500,000. EL CAMPO (f/% 4A - annual revenue: $235,000) PHARR ('f,% 4A - annual revenue: $975,000) • Built 20,000 square foot spec/shell building • Funding engineering for bridge to connect with Mexico • Rebate 2% interest for 5 years to firm ($4,332 a year) • Constructed building to house day-care center and Business Incubator FRISCO ('h% 4A - annual revenue: $870,000) • Financed 1.9 miles of service road to industrial park SUGAR LAND % 4A; % 4B - annual revenue: $2 mi i n) • Joint-ventured development of 100 acre industrial park with • Street construction to serve business park-$500,000 private developer • Provided 50% impact fees and 66% storm sewer co br • Provided $112 million for campus of Community College extension of service to Shoney's Inn • Matched County funds to build $2.3 million service road on • Infrastructure cost to Mall developer of $5 million w' I t Stale Highway 121 repaid from sales tax generated at mall until 2006 or total reached $5 million t- I C 5 i HOW TEXAS CITIES ARE USING JA SALES TAX REVENUES F FOR ECONOMIC DEVELOPMENT (Nor screemd as to legal or authorized expenditures) RUSINFSS RETENTION ANT) ATTRACTION I ANTYRUl1 DINE PIIRCIIAMLEASS Gpcratiom of Local Hospital UPGRADE Equipment for Local Hospital ,kdvertisiog p Promotion, Image, hlarketiog Materials Lad Purchase for Industrial Park ormtaw Valenti Park Industry Appreciation Program Coatrau with Chamber of Commerce of Industrial Building that Houses Incubator snllor Day Care Center Fud Military Affairs Committee Foundarlom for Marketing Serv Lsd for Coaectionel Facilities Target Marketing Infrastructure (thiligy Upgrade or PIa_cment )NFAASTRI[MTRE IIP(-,RAT)E AND MLzkuiog Studies Aeccu Upgrade or Place meat Travel and Related Expeases Land to Expand Airport PI.ACEMfENC Trade sbowa L.lusidal Park Dcvclopmenl Rail Spur for Industry Highway Signe73il1boo ds Existing Buildimg Expansion ad Upgrade Water tad $cwu Line Fxlc maioa to Wu it rial Park Di rut Mad Conatrucllom of Buddiag Drainage Project Newslcucra Lad Purcbue for Reule or Lease odor Control Psojut Video Brocburca Cuo11ructiom of speculative Buildiog Eagioceriag and Construction of Bridge 1-800 Number Sub-Counbouse COn3tructi0a Industrial Park Developments Briefing Cecter Pavilion Construction OTHER Markctims Trip wilb Utilities Compcay Rcoovatioa of Theater Renovation of Vacant Reu;l Store Admininrwioo and Operations INCFNTIVFSIStIIISIDIF.S FOR BUSINESS ConsuhimWEagineeu Direct Loans R { I CfF.IIITCATION Legal ad Accouotiog Espeoui Revulviag Loan Fud1 Job Training for Individuals Supplies Loan Guarantus Jab Training for Specific Compaay Insurance Interest Fogiveneu or Write-di" Texas State Technical College (Construction,'Operatiou) Con iageaay Fund and Reserves uodd Idebtdmeaa Purcha 2quipmmmt for Traiaiug Programs Laze of Office Sp.ce Incubator Program 1TPA Supplemental Funding purch ass office Buihlias Enterprise Zone Establishment Work Force Vevcdopmeal Development of Strategic Plan Capital Crania Provide Space for Traioiog Programs Coaxtructioa of office Space Redocntiua and yAuving Expenses Fund TecbnleaVVocatlonal Crater Fucniture and Equipmeot Undenrite Subsidy go Airline Upgrade Space for Training Programs Contras for Ado"strative Services Subsidy to State Fuh Hatchery Professiomd Dues and Meetiaga SubaWizcd Tax AbatemenWExemptions PROGRAMS AND A911VITIES Subwnptions Subridizd Lad PurcbsuJierse DeVelopmeor Ftmnee Program yTaxes Subsidized BuiWiog Pu .haaelI,ease Small Business Development Ceoter Statue to Killer Bee Sales lax Rebates Retention and Expaoiioa of Local Businesses loccosives for Prison or Conutioaal Fecidity llristaus Light Program Land Purcha" d and aven to Buainasa (Gnup Incubator Operations Gperatias Grants Golf Course project Egrip Deal Purchase Main strut Program Loan Guaraaues IQ State Programs Mlino ity(Womca's Business Enterprise Subordinate Loans to Finsocial lustitntious Fund Day Care Center Loan to Tdovision Repair Shop MLtchiog GranN to Goodwill Industries Texas Leverage Fund Mvelopmeas of Diu Bue Paid for Permits Svurce: Tetx Taws and City, September 1991, by The Corncnianc Group CITIES HOLDING CONCURRENT ELECTIONS TO REDUCE PROPERTY TAXES • Of the top 10 cities to pass the 4A economic development sales tax, 10 held concurrent elections. • Of the top 10 cities to fail the 4A economic development sales tax, 3 held concurrent elections. 1 ~ S r Y 4 PASSING A SALES TAX ELECTION r V E~ 8 i 5 777 UNIFORM: ELE4 CTIQN;,P8TrS r ' on WhWh `io holtl Y - j s - - t u , ~ ~x• x Leo b q SAES TAX-rOR ECONOMIC DEyEIO'A~E q 7~4`..~'s~y~*'~ RE IC LGl\L~I7 Y q ; y 7 M Y 1996 1997 1998 Third Saturday in January January 20 January 18 January 17 First Saturday in May May 4 May 3 May 2 Second Saturday in August August 10 August 9 August 8 First Tuesday after First Monday None Allowed November 4 None Allowed * No November elections are allowed in even numbered years. i I r HOW TO IMPROVE YOUR CHANCES':OF WR jNING AN ECONOMIC DEVELOPMENT SALES` TAX ELECTION Economic development sales lax electrons have a dffjerent character than other campaigns. In general, there is not a built In constituency to assure passage. 77terejore, a constituency must be developed. TEN ways to improve your chances for success; I. Organize, Organize and Organize 2. Keep it an issue campaign ...not a personality one. Do not appoint the board until after the election. 3. Keep it simple ...JOBS, JOBS, JOBS. 4. identify the opposition before the election is called. 5. Hold a concurrent election to reduce property taxes, 6. Inform the voters that a large percentage of (city)'s sales tax is paid but outsiders and non-property owners. 7. Explain to the voters the competitive climate for economic development... • 229 Texas cities have passed the sales tax; • Oklahoma and Arkansas cities now can use sales tax revenues; • Call attention to the nearby cities that have passed the election. I 8. Explain to the voters how much money will be raised by the sales tax and a CONCEPTIONAL PLAN on how it will be used. 9. Get a minimum of 25 percent of the voters to vote early. t 8 10. DON'T ASSUME THAT LOGIC IS ON YOUR SIDE AND YOUR VOTES WILL GET OUT AND VOTE. l~ • Lamesa lost the election, the fiat time, by one vote. r r • Bowie lost by three votes. • Haskell lost three election before passing one I L tf i' SUCCESS OF SECTION 4A ECONOMIC DEVELOPMENT SALES TAX REFERENDUMS HELD DURING SPECIFIED MONTHS MONTH ELECTION HELD PERCENT. PASSED (est.) Jamiary 68 May 70 August 50 November 78 TOTAL 67 Data compiled by: Ile Curnemmne Group f r to S r Nearby cities that have passed the economic development sales tax; g a 'v&s v ' sTjQCO~t~'I?„ StltllatCQ', ~ s °YAykgi ,~.f gg~~,`JddkTyi*Q~ City T * r n ~A i ctf~ Sa1CS Tax' Revenge Sall { 1 , 5•x s , s T1 . , PiI1tC a Allen 4A 593,000 Lancaster Both 2,904,?3; Benbrook 4B 402,053 Little Elm 4A 25,000 Commerce 4A 225,000 Mansfield 4B 560,000 Decatur 4A 288,000 McKinney 4A 1,300,000 Duncanville 4B 1,395,758 Melissa 4A 37,500 Euless 4B 1,125,000 Mt. Pleasant 4A 580,000 Forney 4B 82,000 Paris 4A 625,000 Frisco Both 870,000 Sachse 4B 42,0D0 Gainescale 4B A192,000 Sunnyvale Both 362,144 Ilurst 4B Terrell 4A 498,000 Kaufman 4A Wylie Both 230,000 u 1 J n ' 1 t . f I 1 cd3 ~ry`A T C ''vy T C F(\~`.:> >^}aM x> 1 dA~,'; ry 'Shv rk ve' ,'9 lliiM~♦,~1.' V~ m 'v CO rx: t N,~r ° r N z x half. «k,." 'v ~s > aw y 4`~'~ . rc 'a 'R"g, ' µ „ r W.a ~ti.e%rd. `SK. f <.;+b w K .fo^ .6r. etz !M>' City % State Sales Tax % Local Sales Tax 9'o Other Sales Tax % Total Sales Tax Dallas 0.0625 0.01 0.01 (Dallas MTA) 0.0825 Denison 0.0625 0.01 -0- 0.0725 Fort Worth 0.0625 0.0! 0.005 (Fw NIT A) 0.0825 0.005 (FW SfD) Gainesville 0.0625 0.01 0.005 0.0775 Lewisville 0.0625 0.01 -0- 0.0725 McKinney 0.0625 0.015 -0- 0.0775 Plano 0.0625 0.01 0.01 (Callas :,!TA) 0.0825 Richardson 0.0625 0.U'4 0.01 (Dallas MTA) 0.0825 Denton 0.0625 O.OlS -0- 0.0775 Source: TeTas Sales and Use Tax Rales puhlished by Texss Comptroller of Public Accounts I to t -7 U t wbf 'elf t~a SO ~►.I~~~~►~I a("~~t`b~. ~~~~yy Y~R~ a~~:Z R "M k 2 v a .'nA! i$ Y D a' t I ♦ W i ~ Y q4 y 3s°i~'.y P:za~a N t <iY+ 4, ~ ' ^X I" t 4 1~ ~~.A ~F~M Tr/n~ ~f. Y~; \ F t 4 1 bb 1'~ RA 66 * <; ay: c a 3 ~ ~ f".:'.' i &,.,R:?~q ~pa3,~ w ♦~~'k~~ w ~M1 ~A Mission Statement can have the following components: 1). Define the role of the organization (what it is; what it is not). 2). Establishes as clearly as possible the function(s) of the organization. 1). Answers the following: • Whom do we serve? • What do we believe? • What do we do? Some Examples: • The mission of the EDC is to develop plans, fund and implement programs that maximize the economic potential of (City). • Balance economic development through recmitment, retention, expansion and creation of businesses that export goods an services outside the area. • Enhance (City's) competitive advantage as a world-class manufacturing center. l • Expaml the economy providing positive opportunities for all citizens and neighborhoods, i In • To improve economic opportunities an. quality of life for all citi'rens of (City). a s i ' t Survey s, Resulf»5 Se temhir 199 r i. y , ` i % t J t oii av. f 1G'~.' ?j• , [ki "0 v : t x;( t ~Rr m s % xrl`~ v4 R'G E [ k 4°5w``~^C',~ "1,FNi"fd~9'bJaJ~.,.v'9`~ N 4N CITIES C4LlaEC'J'sMOR a UIONx ' " a. .4, 2 i . i:.; •`~9>"~,' , i.W .~`-w ~Ra+'. 'L sn , iS w ,y h ,l IL % Estimated Revenues staff City Collected 1994.1995 Physical Location of Office Full-time Part-time City Employees Amarillo 'h $8,500,000 6 0 None Office building Abilene 'h 4,900,000 5 2 All City Hall Brownsville 'h 3,500,000 9 3 3 ED Coancil Office Harlingen 'h 3,000,000 4-6 0 None With Chamber of Commerce Longview '.4 2,600,000 5 0 None With Chamber of Commerce McKinney !h 1,500,000 3 0 None Bank building Sugar Land 'k 1,165,890 0 t 1 City Hall Pharr 'h 1,050,000 2 0 I Leased office space Marshall 'h 1,000,000 0 2 All City flail i $ g ILL a i f BASIC COMMUNITY. MARKETING MATERIALS • Community Data Book (Demographics, economic data, employment, utilities, transportation, education, support servi.,es, quality of life) • Community Profile (Same categories as Data Book but in summary form) • Audio/Visual Presentation (optional) • Industrial Site Inventory (Location maps, boundaries and acreage, zoning, easements, transportation access, utilities, neighbors, restrictions, ownership, price) I • Building Inventory (Location, size, height, docks, parking, transportation access, utilities, ceiling heights, i floor loads, column spacing, neighbors, restrictions, ownership, price) u i i 1 t'. ~ Fes,"~.TnTj ~t!'('.r~'~ !"%9 .R' M~",1FC' `J KUr ^Y ~ } :JK k wry E t _ rJTCkFF ti 'l3>Y.5 yF.r ,ti Y,ye ~'K■*t~, t ~0 16iR ,YR A e ~M a✓ X~ x 4Yr S any' e ~ .:iS,b# 'E PF'..,P, ~^.+e X~r4(1KYDPrE$i 4J r S" ~ }r. 9 3.< e. ENrE rb. C. Service Per Cent Using Computerized Database 75 Video Tapes 61 Fax-on-Demand System 23 Bulletin Board Systems, Intemet Link, etc. 14 External Electronic Mail 13 Interactive Video System g CD-RONIS 5 Source: Conway Data Survey, January 1995 t ~j+ 1 I Agenda 190 l✓ ~D0 ADenda Rem. On _ How Cities Organize and Administer ales ax Revenues Dedicated to Economic Development (The first or a two-part series) By Bill R. Shelron and Nancy Raicliff the Cornerstone Group Fort Worth, T( Since 1989, voters in 229 Texts cities • Five are administered by full-time staff, • Six of the operations are physically have approved the option of Imposing a two by a combination of full- and part- located in the city hall, three in a sales and use tax to finance local economic time staff and one by part-time su ff. chamber of commerce ind four in development efforts. The authority to The average number of full-time staff is neither. enact this tax, which is called the five and part-time staff is three- Only three pay the city for 'economic development sales Lax' is found in either Section 4A or 4B of the • Six of the full-time staff are hired by administrative or support services. Development Corporation Act of 1979 theEeonom:cDevelopment Corporation (Vemon's Ann.Civ.St.art. 5190.6.). (EDC), one by the Chamber of Commerce and one uses city staff. Under S500,D00 Annually The legislation provk:es that cities which adopt the sales tax must establish a not- • Three report the top staff person's title There were 58 cities responding that for-profit eorpom6on and appoint either a is Executive Director and three use the received less than S500,000 annually. five- or seven-member citizen board to title of President/CEO. They reported: administer the tax. Because there are few legal requirements on how the local boards • Two of the operations are located in the • Twenty-two of these programs are operate, one of the most frequently asked city hall, two in chamber of commerce administered by a full-time staff and 21 questions is how do cities organize and quarters and four in space not in either by a part-time staff. Five contract with administer these revenues. the chamber or city hail. ineither a dustrial foundation. The average To answer this question, a questionnaire • Seven of the eight cilia reported that numberof full-time staff is 1.3 and part- was mailed to the 229 cities in September the city government receives sales tax time is t.75. 1995. Tabulation of the 149 responses to funds for administrative or support the questionnaire indicates there are services. • Thirty-one us city staff for distinct differences in organization and administration, while 27 use staff other administration. The first distinction is than city staff. Ten reported that stiff obviously the difference between the cities $500,000 to $1 Million Annually is hired by the EDC and three by a that are authorized under Section 4A chamber of commerce it industrial versus those under Section 48. There are There were 15 responses in this category foundation. also differences dclending on the amount reporting the following: of revenue geucnted by the tax. • Fourteen of the top staff administrators • The operations of 10 of the 15 are are either city managers or assistants. The results of survey which follow are conducted by a firm-time staff and two Thirteen have the title of either reported by annual tax revenues from the use a combination of full- and part-time executive director or director. 4A authorization. Next month's article staff. The average number of full time will highlight the responses from the cities staff is two. • Thirty-nine of the operations arc housed that are operating under 43 of the in the city hall and I I with a chamber Development Corporation Act of 1979. • Six are staffed by city employees and of commerce. six are employed by the EDC. Three How Is the 4A Tax Administered? are with either the Chamber of • Ten of the cities are reimbursed for Commerce or Industrial Foundation. support or administrative services. 31 Million or More Annually • Seven of the top staff executives have Eight of the 4A cities that responded have the title of Executive Director and three annual incomes in excess of Sl million. are either Director of Economic Here arc the highlights of their operations: Development or Coordinator. s i i E.\YPDDCS\DRD\CXAMBEA.ED Agenda fJo, - Agenda hem__.~. DD:a_ _ ORDINANCE NO. S'/S7 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE FOR THE PURPOSE OF PROVIDING FOR A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is hereby authorized to execute Amendment No. 2 to an Agreement between the City of Denton and the Denton Chamber of Commerce for the purpose of providing for a program to promote economic development ("Agreement"), a true and correct copy of which is attached hereto and incorporated by reference herein. SECTION 11, That that certain resolution passed by the Chamber of Commerce on the 22nd day of June, 1995, a true and correct copy of which is attached to this ordinance and incorporat- ed by referenco herein, is hereby approved, subject to the terms and conditions of this ordinance and the attached Amendment No. 2 to the Agreement. SECTION Ill, That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _Z.:JKA day of ~ , 1995. 80 CASTLEBERRY, MA R ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. C APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: t 4 f I 02,. AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE THE STATE OF TEXAS § COUNTY OF DENTON 5 This Second Amendment to that :ertain agreement for a program to promote economic development entered into the 15th day of August, 1989 by and between the City of Denton, Texas, a Texas municipal corporation ("City") and the Denton Chamber of Commerce, a Texas non-profit corporation ("Chamber"), as amended. WHEREAS, on August 15, 1989, the City and the Chamber entered into an Agreement for an economic development program ("Agree- ment"), a copy of which is attached hereto as Exhibit "A"; and WHEREAS, on August 2, 1994, they City and the Chamber entered into that First Amendment to the Agreement, a copy of which is attached hereto as Exhibit "B"; and WHEREAS, the City and the chamber will mutually cooperate to create an Economic Development Transition Committee ("EDTC") for th,a purpose of researching and recommending the best structure for an Economic Development Corporation ("EDC") and to develop the charge to the EDC. ARTICLE I. I That the City and Chamber hereby amend Article 1 "Office of Economic Development" of the Agreement as amended, to read as follows: 1. QjjiQe of Economic De Iopm nt Created. During the term of this Agreement, she Chamber shall maintain an Office of Economic Development ("Office"). ARTICLE II. That the City and Chamber hereby amend Article 2 "Economic Development Committee Created" of the Agreement, as amended, to read as follows: 2. Economic Devel)ment Transition Committee ated. In order to promote a program for economic development, the parties y No, ".Cenf314n agree that an Economic DeveloPrent Transition Committee ("EDTC") will be established and seated no later than October 1, 1995, unless this date is extended by mutual agreement of the parties. The members of the EDTC, who shall represent the diverse interests of the community, shall be composed of seven persons, four of whom will be appointed by the City Council and three of whom will be appointed by the Board of Directors of the Chamber. No employee of the City or the Chamber and no elected official shall be appointed to the EDTC. The members of the EDTC shall select one of their members as chair and shall adopt their own rules of procedure. The EDTC will replace the current Economic Development Advisory Board ("Board") and assume all responsibilities, duties and author- ity previously assigned to the Board. In addition, the EDTC is charged with accomplishing the following tasks: a) Develop Economic Development Corporation ("EDC") mis- sion/operating principles. b) Study other economic development charters and make choices of positive aspects of each that would lend to success of EDC. c) Tour the most successful EDC's in country and document recommendation of best structure and outline results- oriented goals. i d) Determine long-range financing of economic development program and EDC operation. Assess potential success and funding opportunities under both Sections 4A as well as 4B of Article 5190.6 Vernons Tex. Civil Statutes to ensure all opportunities under the law are reviewed. if positive, develop strategy and campaign, and make recommendation to City Council to call election. e) Define roles with regard to financial responsibility and authority of economic development financial contributors (i.e., investors, City Council, Public Utility Board). f) Obtain counsel for promulgation of charter for EDC. Page 2 4 ROMn~ Ira - n g) Present justification for corporation charter at joint meeting of City Council and Chamber of Commerce. h) Present justification for long-range financing of EDC programs at joint meeting of City Council and Chamber of Commerce. i) Draft internal operating policies for final adoption by the EDC. j) Recommend detailed line item operations budget for first year activities related to establishment of EDC. k) Hire experts/consultants for expeditious and professional implementation of short term objectives, i.e., financial analyses, team building, and economic development consultants econometric models. 1) Develop economic development program operational perfor- mance indices. m) Continually work at strengthening coalition with inves- tors of economic development program. n) Develop and provide written bi-monthly status reports reporting on the progress of the above-mentioned tasks, and on expenditures to the date of the report. Provide the Chamber, Board, and the City Council with a written report, no later than January 31, 1996, unless that date is extended by mutual written agreement of the parties. That report must have the EDTC's recommendations and findings concerning the formation of an EDC, thAreby completing charges (b), (c), and (g) on page two of this agreement. o) If the EDTC concludes that the formation of the EDC is justified and in the best interest of the entire communi- ty, it shall provide the Chamber Board and City Council with a written final report, no later than March 31, 1996, unless that date is extended by mutual written agreement of the parties, with recommendations and findings reqarding the remainder of the charges. The Page 3 { Z A♦ I Agendi No, ^Aoen$2 Nem cv: final report will include, without limitation,4 dations for the proposed organizational structure, a proposed budget for the EDC, a final draft of the charter, and an analysis of the one-half cent sales tax as a funding option, as well as an analysis of other funding options. Ti a EDTC will also be responsible for the development of the charge ~o the formal EDC including, without limitation, the following: a) Conduct oral interviews with City Council members and Chamber Executive Board members for purposes of annual EDC effectiveness assessment. b) Determine appropriate physical location for EDC headquar- ters. c) Conduct recruitment and make selection of CEO. I d) Hire experts/consultants for expeditious and professional implementation of short term objectives, i.e., financial analyses, econometric models, land planning, development specialists, engineering, public relations, team build- ing, and e:onomic development consultants. e) Develop and implement five-year strategic plan. f) Set measurable first year goals and establish priorities for tasks. g) Prepare pay structure, organizational design, job descriptions, performance measures and incentives. h) Monitor performance results and conduct performance reviews of CEO. i) Develop annual operating business plan and maintain performance indices. Review quarterly and make adjust- ments. Page 4 L Awdg Na r7cn~~ M.•m_ oar: / j) Continually work at strengthening coalition with inves- tors of economic development program. k) Adopt internal operating policies. 1) Publish annual performance report. M) Analyze and publish cost/benefit of efforts. n} Develop periodic comparative analyses, i.e., land purchases, infrastructure expenditures, etc. o) Establish business retention and account management ac:.ivities. p) Develop and market industrial parks. q) Meet with major land owners /developers to determine desire, interest and plans for development. r) Obtain firm market prices on parcels of land available for industrial development. s) Send requests for proposals to national brokers for development of industrial parks. t) Purchase, if appropriate, land and develop specific buildings to meet goals. U) Establish linkages with higher education institutions and implement strategies to better leverage university research and educational assets. V) Interview corporate CEO's and invite input to process and survey as to need for customized training programs. w) Establish technical training center. X) Establish brand image and develop marketing campaign. y) Establish and strengthen strong ties and relationships with Dallas and Fort worth chambers and the North Texas Page 5 t AQw4 ko. Cab 49endi Item,~~ MIC,. - Commission. Z) Participate actively in metroplex MIDAS group. aa) Develop first-class marketing video. bb) Conduct high profile events (i.e, golf/tennis tourna- ments, symphony/theater events) for stockholders and development contacts and periodic special events/tours for metroplex and national brokers and relocation consultants, cc) Conduct at least one international marketing tour each year. ARTICLE IV. That the City and Chamber hereby amend Article 4 "Support Services and Funding" of the Agreement, as amended to read as follows: 4. Support Services and Fundincl The Chamber shall provide the office space, equipment and support staff necessary to the operations of the office. The City shall provide funding as approved in the City's budget which shall be adopted on or before the 20th day of September of each year. Of the amount appropriated for each year, the City shall pay the Chamber one-half on October 1st and the remaining half shall be paid on the following April 1st. Thereafter, the City shall provide annual funding in the amount appropriated for that purpose by the City Council. Any funds provided by Lhe City pursuant to this Agreement shall be retained in an acccunt separate from the Chamber's general operating fund, and shall only be used for the purposes provided for in this Agreement. The Office shall keep current and accurate records of all funds received and ,axpended, which shall be subject to inspection by the City at all reasonable times. The Chamber Economic Development Office shall provide monthly status reports to the City on the progress of the Page 6 i 4 M p Y y k Economic Development Program, which shall include a descrip- tion of expenditures of the Office made with funds appropriat- ed by the City. Annually, during the budget process, the Chamber shall submit a program budget request to the City Manager. The City shall then evaluate the progress of the Chamber Economic Development Program and, at that time, determine whether to continue appropriations to support the Office the following fiscal year. Special studies, research, travel expenditures and operational expenses, including City administrative expenses relating to support of the Economic Development Transition Committee, will be funded as a line item in the 1995/96 Chamber office of Economic Development budget. Until such time as the Economic Development Corporation is formally established and in operation, the Chamber will remain accountable and liable, through the direction of the President, for fiscal management, disbursement of funds, and supervision of Economic Development Chamber staff and fulfill- ment of the original program goals. ARTICLE V. That save and except as amended hereby, that all the terms and conditions, sections, sentences, paragraphs, and phrases of the Agreement, as amended, shall remain in full force and effect. IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized Mayor, and the Denton Chamber of Commerce has caused this Agreement to be executed by its duly authorized Chairman of its Board of Directors on this day of 1995. BOB CASTLESERi%f, MAYO Page 7 w i -9 60 C&4 Apmd~ No. I •~s~A~ ~:.Il 1` - 4 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: 1 LIL~tu AP VED TO LEGAL FORM: HERBERT L. PROUTY, CITY A ORNEY BY: DENTON CHAMBER OF COMMERCE BY : d~~& ~ ai~~ A Charles {V. Carpe er ATTEST : President BY: SECRE RY E:%VPDOMMCH N' WED) Page 8 V Recommendations of the Economic Development Transit Ataomm~i - to the Mayor and City Council of the City of Denton and e f ~+5 `lip RYa' PRONSIONS % rtomlG Developmentot'poMetla~r of Denton peratirig under u 4A - D.6416P pment (1:10rpor'stiorr Act of 1979 y Name of Corporation • Legal Name: Economic Development Corporation of Denton • Doing Business As (d.~.a.) Purpose The Corporation is organized exclusively for the purpose of b -nefltdng and accomplishing public purposes of the City of Denton, Texas, by promoting, z.)sisting and enhancing economic development activities for the City as provided by the Development Corporation Act of 1979, Texas Revised Civil Statutes Annotated Article 5190.6, as amended. Without limiting the foregoing, the Corporation shall develop and implement a competitive industrial (economic) development program for the Denton which will: 1. Expand the economy in order to provide the highest levels of job opportunities and quality of life for all citizens; 2. Improve the city and infrastructure to attract and support development and investment; I Retain and expand existing businesses; 4. Diversify and broaden the tax base; and, 5. Protect the local environment and resources. Registered Office and Ageqt • The registered office for the Corporation shall be maintained in the Denton, Denton County, Texas, • The street address of the initial registration office is: 215 E. McKinney. Denton, Texas • The name of the initial registration agent is: • The names and addresses of each incorporature are: • The board shall be authorized to establish additional offices in the city limits of Denton. 1 I c R !lo ApeMS I!rm Board Composition • Five voting members who serv.: at the pleasure of the c: y council. • Board members will be selected based on interest in the work of the Corporation, special expertise and civic service. Special expertise includes, but is not limited to business skills in finance, accounting, law, personal credibility, business accomplishments and interpersonal skills. • Board member must reside in the city limits of Denton. • No employee of the City or Chamber and no elected official may serve on the Board. Ex-officio Board Members • All members of the city council. • City council can appoint up to five ex-officio members who serve one-year terms. • The Board may recommend individuals for service as ex-officio members. • Ex-officio members shall be given notices of ail meetings, may participate in discussions at board meetings, but shall not be entitled to vote. Terms of Board Members • Terms can be set as long or short as desired. Recommend three years and staggered terms. Terms limited to two consecutive three-year terms. • Vacancies appointed by city council. I Board Attendance • Special consideration can be granted for absences for good cause. • City council advised and may remove any board member who is absent from three consecutive regular meetings. Ofters • The Board shall appoint a president, a secretary, and otb:r officers the Corporation as considered necessary. Meetings and Quorum • By law all meetings held within city limits. • Regular meetings determ;ned by Board resolution but should have a mir!- Lm of four a year. 2 t, Benda tic. ':edr lien t~ Meetings and Quorum (con'd) • Special meetings can be called by Board president or secretary or by three members of th-. Board or the mayor of tie city. • Annual meeting held the last quarter of the fiscal year - this meeting can held concurrently with meeting of the city council. • A quorum consists of three or more voting members. • A majority of the board members present at a meeting at which a quorum is present shall be sufficient to constitute the act of the Board. • A board member may not vote by proxy. Annual Audit, Budget and Program of Work * Corpo- ation pa) s for an annual audit at the end of each fiscal year which is submit M to the city council and manager. • Conduct an annual performance evaluation detailing the corporation's achievement of its prior goals and objectives. • Budget, performance evaluation and next )car's program of work submitted to city council for approval on a mutually agreed ;late. • Activity reports submitted in writing to city council u , mutually agreed schedule. Deposit and Investment of Corporate Funds • All monies of the corporation shall be deposited and/or invested in accordance with city policies. • The board shall designate the accounts and depositories to be created and the methods of withdrawal of funds. • The investment and reconciliat)on of corporate funds may be performed by the finance department of the city. Staff Support • May contract with the city to provide legal and finance services for the corporation upon terms, conditions or compensation as mutually agreeable. Contributions • The board may accept on behalf of the Corporation any contributions, grant or bequest to be used for the general purpose of or for any sp-xial purpose of the Corporation. 3 0 NMI VO ^:r,!I :m Memberships • With the approval of the city council, tt,e board may establish a membership classification, requirements and annual dues structure. All membership dues collected will be mai.,Wned in resid,.,ted accounts and will only be used with approval of the city council. Potential Confikt of Interest • The Corporation shall not borrow money from or otherwise transact business with a board member, officer or committee member without full disclosure of all relevant facts and without the approval of the board. General Powers • Develop policies and operating procedures that do not conflict with city policy. • Acquire or lease property (land or buildings) within the city limits (or the ETJ) or, with council approval, outside the city limits. • Plan, develop, improve and sell or lease land. • Build or rehabilitate buildings for sale or lease. • Sell or lease property by installment payments or otherwise. • Make secured or unsecured loans or loan guarantees. • May borrow funds and issue bonds with city council approval. • Develop and implement financial/incentive programs to attract and retain business. • Sue or be sued in the corporation's name. • Develop long-range goals and programs for the city and the corporation. • Appoint standing or ad hoc committees which may include individuals who are not members of the Board. • Employee personnel as may be needed to conduct the business of t!ie Corporation. • Contract for services necessary to conduct the business of the corporation. • Market and promote the city and its amenities consistent with the purposes and duties set out in the by-laws. • Provide funding for v. to develop infrastructure. • All other activities necessary to carry out the purpose of the Corporation. 4 r y i S F Open Meetings and Open Records ;anal Rem 0310 • All meetings and deliberations of the Board shall be called, co a and conducted in accordance with the Texas Open Meetings Act. • All records ihall be kept and administered in accordance to the Texas Opcn Records Act. 1FUcal Year • The fiscal year shall run concurrently with the 0scal year of the city (October 1 to September 30). Amendments to By4awe • Affirmative vote of three board members may alter, amend or repeal the by-laws. Said amendments shall be effective only upon approval of the city council. Indemnification and Insurance • The corporation shall indemnify board members and employee.3 • The corporation may purchase and maintain insurance on behalf of any board member or employee. • Copies of all Insurance and bond policies will be filed with the city secretary. Parliamentary Authority • Robert's Rules of Order, Newly Revised, or specific rules adopted by the city council or the Hoard. Dissolution of the Corporation • Upon dissolution, all the corporation's assets shall be distributed to the city. 5 _ r a Nda ` to NNW CITY of DENTON, TEXAS MUNICIPAL BUILDING 215 E. MCKINNEY DENTON, TEXAS 76201 (817) 566-8200 DFW METRO 434-2529 CITY COUNCIL REPORT FORMAT To: Mayor and Members of the City Council i From: Rick Svehla, Acting City Manager Date: January 17, 1996 Subject: 1995 I.M.A.G.I.N.E. (Improving My Abilities Guarantees Incredible New Experiences) Program RECOMMENDATION No action required. SUMMARY Receive a report from the Parks and Recreation Department on the award winning I.M.A.G.I.N.E. program and view a video. The report will include the goals, program features, 1 accomplishments, demographics, evaluation of the first year, future plans, and status of current year program. BACKGROUND Dr. Ruth Anderson of Denton bequeathed to the Denton Parks & Recreation Department the sum of $30,487, with the stipulation that it be used for programming for youth-at-risk. The decision was made to develop a program that provided a significant experience for a small group of teens over an extended period of time. The I.M.A.G.I.N.E. program's first year of operation was January-August 1995. I.M.A.G.I.N.F. which is an acronym for improving My Abilities Guarantees Incredible New Experiences, provided the opportunity for 12 at-risk teenagers, ages 14-17, to participate in a program designed to develop and improve their self-esteem, education, lzadership skills, social responsibility and decision-making abilities. Points were awarded for participation in all activities and school grades. All participants who earned 500 points went on a 4 day/3 night trip to Washington, D.C. in August. "Dedicated to Quality Senice" S 1 AWda I,*. l-~ E0-<e The initial bequest will fund the operation of the program for a second year. nor er to perpetuate I. M.A.G.I.N.E., fundraising, efforts and grant solicitation will cojitinue. Applications for the 1996 program were accepted in November and December, 1995. Interviews of potential candidates were held in December and January and the new group of i.M.A.G.LN.E. participants will begin meeting on January 25, 1996. PR AMS, DEP RTb NTS OR GROUPS AFFECTED1 Parks and Recreation Department FJSCAL IMPACT This program is funded by a $30,487 bequest from the Ruth Anderson estate. RESPECTFULLY SUBMITTED: Rick Svehla, Acting City Maaager Prepared by: Ed Hodney, Di recto Parks and Retreat on Department Approved: /A~ Betty McK Executive Director Municipal Services/Economic Development 1 The Dallas-Fort Worth Metro Area Parks and Recreation Directors Association IL takes pleasure in presenting the INNOVATION A WARD to n~anarl~s ~rQQ*en in recognition of the "'1/kA,Z r? , an innovative program that enhances the overall quality of the City's parks and recreation program Majew&?•~" 1995 CH AMMAN ,~,w DATE D/FW METRO ARM ?AM AND RECREAT M DRECrOILS AMOMTXW I Students earn trip to Washington, D. C. By Jsssloa DeLeon New Experiences, have met ev. Part of that comes from the surrwriter Participants ery week mince January to past activities they had to partici- Eighteen-yea r-old Henry Students who participated In ticipate in the project and hm pate in. Projects included cul- Cruz used to consider himself the IMAGINE program: accumulated points for sack tural activities, going to see ally and uncomfortable around 4WsM Clark, Henry Cruz, event they attended, Students plays such as "Grease" and vls- people. April Garrett, Veronica McBeth, who earned up to 600 points, iting Science Place in Dail", But now Mr. Cruz says he's Krystl Payne, Jason Reese, Kevin which included eight of the which broadened their experi ready to travel with seven oth. Sanford a,d Sara Were participants who went through ens. Fund-raisers, such as cat ers to Washington, D.C., for the entire program, earned the washes, helped them learn how the first time - and that takes ing the trip as their goal, the trip to Washington, D.C. r It. to work with others. IMAGINE more self-confidence than he students said IMAGINE has Thinking back to when the was funded by the Ruth Ander- aver thought he would have. helped them gain self-esteem son estate and, as a way to du- He credits that thane to and res Program began in Jaa~, Y pact toward others. Part and Recreation coordipa- plicate her generosity, the stu- IMAGINE, a program spon- "It really helped me work for Brenda Burton said 'It dents participated in sgnd by the Denton Parka and harder toward my goals," said awkward The kids didag wAs community service projects, Recreation Department de- Cruz, who has plans on beans- each other. such as Keep Denton Beauti• signed to help at-risk youth be- ing a lawyer. 1W, to serve others. tween the ages of 14 and 17. Students In IMAGINE, "I've seen it lot of chsngw for Tbs students said the pro- By participating in projects which stands for Improving My the positive," she slid!. throughout the year and hav- Abilitias Guarantees Incredible 'They've grown as individuals.' See 11UP/3A TO From/tA you --ere doing something," he jects have helped tremendous- said. ly. The students will spend "It helped me improve my Thursday through Sunday in abilities," said 14-year-old Ve. the nation's capitol, where they ronica McRath. "It kept me out will visit George Washington of trouble and it helped me University, the Capitol and the make better grades.' monuments. Congressman Monisha Clark, 17, said, "It Dick Armey arranged a guided helped me build up my self- VIP tour of the White House esteem. It made me be more for the group. committed to my schoolwork' Ms. Burton pointed out that L' One of the self-esteem boost- the trip may not have been at- ers also served as a fund-rais- tainable in any other way for er. Each student had to sell some of the students - and "stock" in themselves to help helping them get to the na- 1 raise money for the program, tion a capitol brings its own ex- i and Kevin Sanford lb, sold citement. $80 worth of stock in himself. "l will get to see it terougb ~ Each person who bought stock their enthusiasm,' she sa-°d. received a certificate indicating they had invested in the stu- dents' efforts. Each stockholder is invited to a spaghetti dinner later this month. "it made you kind of proud s LAWda No { WY 41 DENTON, TEXAS MUNICIPAL BUILDING 215 E McKINNEY DENTON, TEXAS 76201 (817) 566.8200 * DFW METRO 434.2529 MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Jon Fortune, Chief Finance Offi ,er DATE: January 19, 1996 SUBJECT: 1996-97 CITY COUNCIL BUDGET PRIORITIES QUESTIONNAIRE Each year the City budget process begins with the completion of a Budget Priority Questionnaire by City Council. Because City Council direction is essential to guide the budget process, your help is needed to prepare the 1996-97 questionnaire. Please review the attached list of possible service areas to be included in the 1996-97 Budget Priority Questionna re, and be prepared to make any suggestions and additions or deletion an January 23, 1996 dtuing the discussion of the questionnaire. The Budget Priority Questionnaire will be distributed to City Council on January 26, 1996 and will be due back to the budget office by February 2, 1996. If I can provide you with additional information please let me know. Thant: You. JF:lb Attachment "Dedicated to Qua), Service" F PRIORITY QUESTIO VNAIRE SERVICE AREAS PUBLIC SAFETY TYPE SERVICES INTERNAL TYPE SERVICES POUCE PATROL LEGAL SERVICES CRIME INVESTIGATION INFO/DATA PROCESSING SERVICES DRUG ABUSFJENFORCEMENT PROGRAMS RISK MANAGEMENT COMMUNITY ORIENTED POUCING (COPS) INTERNAL GAUDIT EM SERVICES PARKINQ/TRAFFIC ENFORCEMENT PERSONNEL RECRUITMENT FIRE PREVENTION EMPLOYEE TRAWING/DEVELOPMENT EMERGENCY MEDICAL (AMBULMCE) FIRE SUPPRESS ON WORKFORCE DIVERSITY EMERGENCY PREPAREDNESS (MANAGEMENT) OTHER SERVICES/ISSUES ENVIRONMENTAL HEALTH (INSPECTIONS, ECT.) ANIMAL CONTRIBUTNCENTIVE9 FOR DEVELOPMENT CONTROL CURRENT HOTELIMOTEL TAX CONTRIBU'nCNJS MUNICIPAL COURT EMPLOYEEUTIUTY INCENTIVE RATES JUVENILE JUSTICE SYSTEM ECONOMICUTIUTY INCENTIVE LINES (TAX ABATEMENT, ETC.) PUBLIC WORKS TYPE SERVICES UTILITY TYPE SERVICES STREET MANTENANCE/REPAIR LANDFILL STREET CONSTRUCTION/REBUILDINO SOLID WASTE COLLECr10N STREET SWEEPING STOR" DRAINAGE IMPROVEMENTS TRAFFIC LI WA; TE*VATER TREATMENT PLANT AIRPORTO DEVE EVELOPMEN/ENGINEERING MENT WATER STORAGEJRESERVES UTTER PROGRAMS COMMUNITY DEVELOPMENT TYPE SERVICES ELECTRIC TRIC RE S EFFORTS PUBLIC TRANSPORTATION (SPAN, ETC.) TELECOMMUUNI NI CCAAT T NEIGHBORHOOD SERVICES (NICE, ETC.) IONS SYSTEM DOWNTOWN REDEVELOPMENT (MAIN ST, ETC.) LOW & MODERATE INCOME HC+JSING LONG RANGE COMPREHENSIVE PLANNING DEVELOPMENT REVIEW PROCESS CITY BEAUTIFICATION (PARKS, FAOUTIES, MO) ANS) CODE ENFORCEMENT DEM(YJTION OF SUBSTANDARD BLDG SIGN VIOLATIONS HIGH WEEDS/DF.BRIS VIOLAI IONS BUILDING INSPECTION PARKS AND LEISURFAJBRARY TYPE SERVICES NEW PARKSMARK EXPANSION (IN NEIGHBORHOOD, COMMUNITY) PARK MAINTENANCE (ATHLETIC FIELDS. MEDIANS, MOWING) NEW ATHLETIC FIELDS BICYCLEIHIKING TRAIL DEVELOPMENT GREENBELT SYSTEM PLAN NING/DEVLOPMENT RECREATION CENTER PROGRAMS SENIOR CITIZEN PROGRAMS YOUTH RECREATION PROGRAMS NEW ATHLETIC PROGRAMS CIVIC CENTER MAINTENANCE LIBRARY PROGRAMS (IN GENERAL) LIBRARY EXPANSION UBRARY YOUTH/CHILDREN'S PROGRAMS LIBRARY REFERENCE SERVICES UBRARYAUDIOMSUAL SERVICES c:u r rw n+aPna+an~noossrxnFt nT anv.wxi n CITY OF DENTON, TEXAS MUN10PAL BUILDING • DENTON, TEXAS 76201 • TELEPHONE (817) 566.8307 Office of the City Manager CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM, Rick Svehla, Acting City Manager DATE: January 19, 1995 SUBJECT: Resolution Authorizing the City Manager To Execute An Agreement With the Department of Transportation RECOMMENDATION: Staff recommends the adoption of this resolution. BACKGROUND: In April, 1995, Staff made application for an urban area formula grant to fund public transportation services in Denton. This assistance is authorized by the Secretary of Transportation and funded under the Urban Mass Transportation Act of 1964, as amended. The applicable legislation, section 9, is administered under the auspices of the Federal Transit Administration (FTA). On January 5, 1996, the FTA notified the City that our grant request in the amount of $422,552 had been approved. This funding j includes $40.90n for planning, $215,000 for operations, and $161,600 for capital. The capital funds will be used to purchase two lift equipped vehicles and replacement route signs. Also included is $5,152 in capital for the City's participation in the demonstration Ozone Alert program. Funding as approved is to be used during the FY 195-96, which runs from October 1, 1995 through September 30, 1996. PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED: Citizens of Denton who use public transportation. FISCAL IMPACT: Costs associated with the funding of public transportation services in the City of Denton will be funded in r-Nrt by the Section 9 Grant totaling $422,552. "Dedicated to Quality Service' Agnda No. ACenda t!fi _ Please advise if I can provide additional infor Q.....,.__ RESPECTFULLY SUBMITTED: R ck Sveh a Acting City Manager Prepared by: 4siph Portugal stant to the City anager i Attachments: 1. Notification of Award 2. Resolution r 4ocnda Pa. rcada lum om... UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION FEDERAL TRANSIT ADMINISTRATION GRANT AGREEMENT (Form FTA G-2, October 1, 1995) Upon execution by the Grantee narred below, the U.S. Department of Transportation, Federal Transit Administration (Federal Government or FTA) and the Grantee have entered into this Grant Agreement. This Grant Agreement covers the Project described below. In addition, the following documents are incorporated by reference and made part of this Grant Agreement: (1) "Federal Transit Administration Master Agreement," Form PTA MA(2), October 1, 1995; and (2) Any Award notification containing special conditions or requirements, if issued. THE FEDERAL GOVERNMENT MAY WITIIDRAW ITS OBLIGATION TO PROVIDE FINANCIAL ASSISTANCE IF THE GRANTEE DOES NOT EXECUTE THIS GRANT AGREEMENT WITHIN 90 DAYS AFTER AWARD. FTA HEREBY AWARDS A FEDERAL GRANT AS FOLLOWS: Project Number: TX-90-X343 rganig: CityofDenton Designated Reci i nt: City of Denton Citation of Statute(s) Authorizing ProjW: 49 USC § 5307 Estimated PF9ject Cos, t: $689,440 Maximum Federal Funds Anosved jlncluding All Amendments]: $422,552 Amount of This Federal Assistance Award: $422,552 MWmum Percentage(j)) of Federal Participation: 80°/. capital, 8VIe planning, 50% operating Date of Department of Labor Certification() of Transit Employee Protective Amp-Sements: Ori 'nga al Projet-t or Certification Date [Amendment Number) 0 5/23/95 1 2 3 r ~~enQ~ Mo. Vt. 1r Project Description: See Approved Project Budget Conditions of Award: None dAK 0 b N 3 OBLIGATION DATE FTA AUTHORIZED OFF EXECUTION OF GRANT AGREEMENT This Grant Agreement may be simultaneously executed in several counterparts, each of which shall be deemed to be an original having identical legal effect. After the FfA Authorized Official has signed this Grant Agreement, the Grantee should then execute this Grant Agreement. The Grantee, by executing this Grant Agreement, ratifies and adopts all statements, representations, warranties, covenants, and materials submitted by it; accepts the Federal Government's grant award; and agrees to all terms and conditions of this Grant Agreement. i Executed this dayof~ 19 ATTEST: By; TITLE AND ORGANIZATION TITLE AND ORGANIZATION f L R E . 't'~'P C{'CS\FE51'JFETN. yr'S Agenda K0. _ 1- 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE DEPARTMENT OF TRANSPORTATION, UNITED STATES OF AMERICA, FOR A GRANT UNDER THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Secretary of Transportation is authorized. to award grants for a mass transportation program of projects and budget; and WHEREAS, the contract for financial assistance will impose certain obligations upon the applicant, sucn as the City of Denton, including the provision by it of the local share of the project costs in the program; and WHEREAS, the U.S. Department of Transportation requires, in accordance with the provisions of Title VI of the Civil Rights Act of 1964, as amended, that the applicant give an assurance that it will comply with Title VI of the Civil Rights Act of 1964 and the Department of Transportation requirements thereunder; and WHEREAS, it is the goal of the applicant that minority business enterprises be utilized to the fullest extent possible in connection with the project, and that definite procedures shall be established and administered to ensure that minority businesses shall have maximum construction contracts, supplies, equipment, contracts, or consultant and other services; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That the City Manager is authorized to execute an ,reement on behalf of the City of Denton, Texas, with the U.S. Department of Transportation, .o aid in the financing of planning, capital and operating assistance projects pursuant to Section 9 of the Urban Mass Transportation ACL of 1964, as amended. SECTION II. That the City Manager is authorized to execute and file an assurance or any other document required by the U.S. Department of Transportation effectuating the purpose of Title VI of the Civil Rights Act of 1964. SECTION III. That the City Manager or his designee is authorized to furnish such additional information, assurances, or certifications as the U.S. Department of Transportation may require in connection with the program of projects and budget. SECTION IV. That the City Manager is authorized to set forth and execute affirmative minority business policies in connection with the program of projects and budget; procurement needs for transportation. S 7 SECTION V. That the City Manager is authorized to execute grant agreements on behalf of the City of Denton, Texas with the U.S. Department of Transportation for aid in the financing of ti:e planning, capital, and operating assistance program of projects and budget, and to expend the necessary funds as may be required by the condition of the grant. SECTION Ttat this res)lution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1996. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 A: woaLocoM.oao ;.panda I:o. AaWs Item 55 poL( ORDINANCE NO. AN ORDINANCE PERMITTING AND REGULATING THE CONSTRUCTION, MAINTE- NANCE AND USE OF A LONG DISTANCE TELECOMMUNICATIONS SYSTEM BY WORLDCOM NETWORK SERVICES, INC. ACROSS, OVER AND UNDER CERTAIN HIGHWAYS AND PUBLIC RIGHTS-OF-WAY OF THE CITY OF DENTON; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITii; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, WorldCom Network Services, Inc., a Delaware corporation, hereinafter "WorldCom" desires use of certain public rights-of-way within the City of Denton for the purposes set forth below pursuant to the provisions of the laws of the State of Texas, including, but not limited to, Article 1416 V.A.C.S.; and WHEREAS, the City Council has determined that it is appropri- ate to grant the following license to WorldCom; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION I That the City of Denton (hereinafter the "City") hereby grants to Worldcom and its successors and assigns, for the full term of twenty-five (25) years commencing January 1, 1996, a license to acquire, erect, construct, replace, reconstruct, maintain, use and operate in, Dver, under, along and across certain streets of the City (hereinafter the "public right-of-way") all necessary or desirable wires, cables, underground conduits, man- holes or other structures or appurtenances (hereby the "facility" or "facilities") in connection with a long distance telecommunications system or systems (not including cable televi- sion, local exchange telephone service, and intra-LATH services for video dial tons, video common carriage services or personal communications services) that provides long distance tele- communications service (hereinafter the "system"), subject to the provisions nshall this use pursuant to this ordinance shall be that aportwhich ion of the City street system extending for a length of approximately nine thousand eight hundred eighty-two (9,882) feet. The route is shown on Exhibit "A" attached hereto and incorporated herein for all purposes incident hereto. SECTION II. The work done by WorldCom in erecting, construct- ing, replacing, reconstructing, maintaining or repairing the system shall be subject to and governed by all laws, rules and regulations of the City and State of Texas that are applicable to insuring the work done does not inconvenience the public in the use of the pub- lic right-of-way, including but not limited to the following: J AWdj No. Apendl Item q(e A. Prior to const:"u Ctlc.. 1-7 911' ciQ:llfi:7: ~ ~ - system which Cutting O other such disruption of City right-of-e.ay er City prop- erty after the effective date of :his ordinance, WorldCom shall submit engineering plans t^ the City for review and approval, pursuant to the standards generally applicable to requests for the privilege to use the public right-cf- way, including the City's utility location and coordina- tion policy. Approval of such plans will not be unreascn- ably delayed, withheld cr denied by the City. B. All excavations and other construction in the streets shall be so carried out 3s to interfere as little as prac- ticable with the surface use of the streets and sidewalks and with the surface use of private prcperty, in accord- ance with any lawful and reasonable direction given by or under the authority of the gcverning body of the City under the police and regulatory powers of the City neces- sary to provide for public convenience. WorldCom shall promptly restore all public right-of-way excavated by WorldCom to substantially the same condition as before such excavation and to the reasonable satisfaction of the City. WorldCom shall comply with all other construction requirements of the City and its Directors of Transportation/Public Works and/or Utilities Departments with respect to hours of construction operations in peak- busy traffic hours, barricading requirements and/or any other reasonable construction rules which may be lawfully promulgated. C. Except in an emergency, WorldCom shall not ex.,avate any pavement in any public right-of-way or significant amounts of any unpaved public right-of-way without first securing the permission of the City, but such permission shall not he unreasonably delayed, withheld or denied if the pro- posed excavation is in accordance with the terms of this ordinance. The City shall be notified as soon as practi- cablF: regarding work performed under emergency conditions. D. The City shall have the power at any time to order and require WorldCom to remove or abate any facility that is dangerous to life or property, and in case WorldCom, after written notice, fails or refuses to comply within a reasonable period of time, the City shall have the power to remove or abate same at the expense of WorldCom, all without compensation or liability for damages to WorldCom. SECTION III. The City reserves the right, subject to further conditions described in this paragraph, to lay and permit to be laid sewer, gas, water and other pipelines or cables and conduits and to do and permit to be done any underground and overhead in- stallation or improvement that may be deemed necessary or proper by the governing body of the City of Denton in, across, along, over or under any public right-of-way occupied by WorldCom to change any curb or side-walk or the grade of any street, provided, the city PAGE 2 4 AOenQt Np'~ '1#fld3 Pen agrees to ut Lze 1 s tier - stem d fsr ❑c'Ificatic: ut:__ s Ana -:ztn:~ tna prior to cond!~ct r , ing any such activities. - In U--rm:tL Rg SUCK w I"}: done, the City shall not be liable t World•_-_- foz any risr,ages so caused, nor shall the City he liable to WOYIdCc,m fcr any da~a_-=s arising oat of the performance of said work by the city cr its 1-c.nsees, invitees, contractors or subcontractors; provided, however, nothing nerein shall relieve any other person or corporation fre^. liability for damage to the facil- ities of the system. If the City requir?s WorldCom to remove, alter, change, adapt or conform its facilities because of changes in the grade of a street or in the location cr manner of construct- ing a water pipe, sewer pipe or other .r-Aerground or aboveground structure owned by the City, WorldCom shall make the alterations or changes as soon as practicable when ordered in writing by the City, without claim for reimbursement or damages against the city. If these requirements impose a financial hardship upon. WorldCom, WOrldCom shall have the right to present alternative proposals for the City' s consideration. If the City requires WorldCom to remove, alter, change, adapt or conform its facilities installed hereunder to enable the City, to use, or to use with greater convenience, such public right-of-way, then City shall not be 1`.able for any reimbursement, loss and expense which will be caused by, or arise out of, such removal, alteration, change, adaptation or conformance of WorldCom's facilities. SECTION IV. In the event that the governing body of the City of Denton authorizes abutting landowners to occupy space under the surface of any public right-of-way after the adoption of this ordinance, such grant to abutting landowners shall be subject to the prior rights of WorldCom described in this ordnance. SECTION V. In the event that the governing body of the City of Denton closes or abandons any public right-of-way which contains the facilities of WorldCom installed hereunder, any conveyance of land contained in such closed or abandoned street, alley, highway or public place shall be subject to the rights of WorldCom described in this ordinance. In the event that any portion of the public right-of-way that includes facilities of the system become the subject of condemnation proceedings, it is agreed that WorldCom's property rights and interest in such public right-of-way shall be severed from the City's interest in such proceedings and any such condemnation awards shall be specifically allocated between WorldCom's interest and the City's interest. The City shall notify WorldCom within a reasonable time of any condemnation action (or threatened action) filed against the public right-of-way that affects any facility of the system, or any proposed sale in lieu of condemnation. SECTION VI. WorldCom shall indemnify and save and hold harm- less the City and all of its officers, agents and employees from all suits, actions or claims of any character, style and descrip- tion, brought for or on account of any injuries or damages, inclu- ding death, received or sustained by any person or any property PAGE 3 t f Aogn6 No. A?enda Item occasioned by, or arising out of _r in con,;_:c erection, construction, location, replacement, reconstruction, repair, maintenance cr operation of WorldCom's system; and WorldCem will be required to pay any judgment with costs which may be obta'r.ed a .W st the City arising out of such injury or damage; provided, "ver, that the City shall notify WorldCom of any pending act':,i or suit which may affect WorldCom under the terms of this agreement. SECTION V11. The governing body of the City of Denton and its City Manager shall have the right to be kept fully informed as to matters pertaining in any way to WorldCom's exercise of its rights under this ordinance, including the -erection, construction, location, replacement, reconstruction, maintenance, repair or operation of the facilities of the system i_i Denton. WorldCom shall provide to the City complete and acc%rat,~ "as-built" drawings describing the location of facilities of the system in Denton. The "as-built" drawings shall provide for separate and specific identification of those facilities of the system that are located in the public right-of-way. Any and all "as-built" drawings required by this ordinance shall be provided to the City. Worldcom shall fully cooperate making available its "as-built" drawings. SECTION VIII. Any notice or communication required in the administration of this ordinance shall be sent as follows: City Secretary Denton City Hall 215 E. McKinney Denton, TX 76201 with copy to: City Manager Denton City Hall 215 E. McKinney Denton, Texas 76201 Notice to WorldCom Network Services, Inc. will be to: WorldCom Network Services, Inc. 2600 Bank of Oklahoma Tower Attn: Right-of-Way Department Tulsa, OK 74172 PAGE 4 r r OenG IfO. ~?en?a lrem with copy to: 01ri~~ Estill, Hardwick, Gable, Golden & Nelson 320 South Boston Avenue, Suite 400 Tulsa, Oklahoma 74103-3708 or to such other address as may designate from time to time by written notice. SECTION IX. A. WorldCcm shall make an initial one time payment of $10,000 for the privilege granted hereunder, payable as set forth below. WorldCom shall make twenty-fi/e (25) annual payments beginning en or before January 1 of each of the next twenty-five (25) years at the rate of not less than $1.15 Per linear foot of City-owned right-of-way used per year (a distance of 9,882 feet as shown on Exhibit "A" attached to this ordinance), as determined from the "as- built" drawings to be. provided by World^_cm to the City in accordance with Section 1 of this ordinance. The above fees shall be adjusted on a percentage basis and proportionally to the percentage change in the Implicit Price Deflator for Gross National Product as determined by the Federal Reserve Bank of St. Louis, at one (1) year intervals during the course of this ordinance. WorldCom shall be notified of the adjustment forty-five (45) days prior to the date said fee is due under this ordinance. The base for the adjustment shall be the Implicit Price Deflator for Gross National Product as determined by the Federal Reserve bank of St. Louis reported for the first quarter of the calendar year in which the annual payment is due. This ordinance is intended to grant use of the public right-of-way only in connection with the uses )rescribed I hereunder. The fee payment shall be exclusive of and in addition to all general municipal taxes of whatever nature, including but not limited to ad valorem taxes for public improvements except as hereinafter provided. B. The initial one time fee of Ten Thousand dollars ($10,000.00) shall be paid to the City of Denton within thirty (30) days after the effective date of this ordinance. The twenty-five annual payments shall be made on or before January 1 of each year of the twenty-five year license beginning on January 1, 1996. The fee is payable to "City of Denton" and shall be directed or delivered to the- Executive Director of Finance. C. The fee established in Section 9A hereof shall not be affected by any relocation of WorldCom facilities required by the City pursuant to this ordinance. PAGE 5 t•. ti J 1"01 Y ;•rd~ 1';m Eta;: SECTION X_ The rights grante,7 by this crdir.ance inure to the benefit of WorldCom, and any parent, subsidiary, affiliated or successor entity now or hereafter ex.i-:ting. The rights shall not be assignable without the express written, consent of the governing body of the City of Denton, except WnridCom may assign its rights under this ordinance to a parent, subsidiary, affiliate or successor entity without such consent, so long as (i) such parent, subsidiary, affiliate or successor assumes substantially all of the obligations of WorldCom hereunder, and (ii) is bound to the same extent as WorldCom hereunder. Such consent shall not be capriciously or unreasonably withheld, delayed or conditioned. Any required consent is to be evidenced by an ordinance or resolution of the governing body of the city that fully recites the terms and conditions, if any, upon which consent is given. SECTION XI. WorldCom, without the consent of the City, shall not lease any of the public right-of-way it uses in connection with its system, to any nen-WorldCom company, provided that WorldCom shall have the right to lease or dedicate its system or any portion thereof, or otherwise make available facilities of the system to other companies in the ordinary conduct of its business as a long distance telecommunications company, so long as WorldCom retains responsibility for servicing and repairing the facilities of its system. Notwithstanding the foregoing, WorldCom will not lease any conduit space in the system to any nun-WorldCom company for the placement of any additional cable without the express written consent of the City wi•ich consent shall not be unreasonably withheld or delayed. SECTION XII. World bm has the option to renew this license for an additional twenty-five (25) year period upon 180 days written notice prior to termination of the original license. The renewal of this license is contingent upon WorldCom and city mutually agreeing to the amount of the annual payment during the option period. Such annual payment shall not exceed the charge that other licensees are remitting to City for similar right of way uses. SECTION XIII. The Director of Public Works or his duly authorized representative is the principal City official responsible for the administration of this ordinance, and Worldcom recognizes that questions regarding the interpretation or application of this ordinance shall be raised initially with thac designated official. SECTION XIV. This ordinance shall be cumulative of all provi- sions of ordinances and of the Code of the City of Denton, Texas, as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION XV. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared PAGE 6 s 2 unconstitutional by the vali3 judgr:ent or dccr 0"$f-~~ ofy competent jurisdiction, sack: s a y Of t:.°_ remaining phrases, :::auses, paragraphs and sections of this Ord:..^.ance, Since tl,e same 'h :ld 1' =en enacted by the city Council withcut the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION XVI. The City Secretary of the City of Denton is hereby directed to engross and enroll this ordinance as required by law. SECTION XVII. This ordinance shall take affect and be in full force and effect from and after its aassage, and it is so ordained. PASSEL) AND APPROVED this the day of 1995. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Accepted: WORLDCOM NETWORK SERVICES, 1NC. BY: Title ATTEST: CORPORATE SECRETARY BY: PAGE 7 s .oco~, t:o. G a~ene, nna tHto ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated competitive bids for the 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 servicE.; as shown in the "Bid Proposals" submitted therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the numbered items in the follm4ng numbered bids for materials equipment, supplies, or services, shown in the "Bid Proposals" attached hereto, ar: hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO VENDOR AMOUNT 1819 1,6 ALLEN SAMUELS DODGE $ 85,225.00 1819 5 ALLEN SAMUELS AUTOPLEX $127,932.00 1819 7 PRESTIGE FORD $ 15,199.00 1819 8 HUDIBERG CHEV. $ 25,086.00 SECTION 11, 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. SECTION III. That should the City and persons submitting approved 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, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. 1 1 SECTIOMLV. 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 made pursuant thereto as authorized herein. SECTION V. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of 1996. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY:.________ - S UPPL Y.ORD DATE JADN9i<~ Apend! ltem,, CITY COUNCIL REPORT R+ta., j~ ot3~ - % TO: Mayor and Members of the City Council FROM: Rick Svehla, Acting City Manager SUBJECT: BID # [819 -FLEET VEHICLES RECOMMENDATION; We recommend this bid be awarded to the lowest bidder meeting specifia.tion for each type vehicle as listed below: DESCRIPTION OTY VENDOR PRICE EXTENDED I . '/2 Ton P/U SWB 5 Allen Samuels Dodge $12,998 EA $ 64,990.00 5. 1 Ton Cab/Chassis 6 Allen Samuels Autc;;lex $21,322 EA $ 127,932.00 6. 1 Ton Van 15 Pass. 2 Alen Samuels Dodge $20,235 EA $ 40,470.00 7.3/4 Ton Cab/Chassis I Prestige Ford $15,199 EA $ 15,199.00 8. 1 Ton 4 Door Crew Cab I Hudiberg Chev. $25,086 EA 25,086. 00 TOTAL AWARD $ 516,281.00 SUMMARY: This bid is for the purchase of 15 vehicles for the City of Denton Fleet. The units were approved for acquisition during the 1991'.96 budget process. Fourteen (14) units are motor pool replacements and one unit is a fleet addition. The old units will be reviewed by the Fleet Operations Division and reassigned to a lighter duty or sold at public auction. We also recommend that bid items 2, 3, 3A and 4 be purchased from the State of Texas General Services Commission. Utilization of the lower price offered by the State of Texas General Services Commission Cooperative Purchasing Program on items 2,33A and 4 yields a savings of $10,877.00, See State Purchasing General Services Commission Ordinance. As in past bids, we find that in some instances we are able to beat the State Contract Prices for specific items, However, due to specification requirements that is not always the case. It is our intent to present to all prospective bidders a fair and equal opportunity to do business with the City of Denton and to recommend award in full compliance with the law and in the best interest of the tax payer and rate payer. BACKGROUND: Tabulation Sheet PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Various departments utilizing the new eq:iipment, Fleet Operations and City of Denton Motor Pool. New unit assignments inducting General Services Commission Units Water Meter Shop I Electric Meter/Substation 6 Animal Control I Building Inspection 4 Parks-Recreation 2 Solid Waste I Street Maintenance 3 Water/Sewer Field Serv. 3 Drainage 2 WWT Plant f Electric Distribution 3 Park Maintenance 3 Facility Management I CITY COUNCIL REPORT Ealt7JANUARY 23, 1996 PAGE 2 OP 2 ) Iten S FISCAL IMPACT: Funds for the purchase of these vehicles will come from a combination of 1995/96 budget funds, Motor Pool replacement funds and Motor Pool Lease/Purchase funding, Respectfull submitted: % Rick 4 Svehla Acting City Manager Approved Name: Tom D .Shaw, C.P.M. True: Purchasing Agent 683.ACENOA t a F J ~BlDa9 1819 I OTHER BI N M Fleet Vehicles HUDISURG VILLAGE ALLEN BILL PRESTIGE MAXWELL STATE OF PAGE IOF2 CHEVROLET! FORD SAMUELS UTTER FORD DODGE TEXAS N December 6, 1995 N. LOOP FORD CONTRACT I DODGE I _ PRICES DESCRIPTION VENDOR VENDOR _ VENDOR VENDOR _ VENDOR VENDOR VENDOR t ' 1 7.0_ 0 S1J 39 0.00_ S T112 1l2 Ton Ton Plcku Pickup LWB SWB _ $ 511 35,284.00 89 514190.00! $13 819.00' i13~68.00$43,314.00.__ 113 306,00 $14,696.00_ $13,999.00 17 314 Ton Pickup LWB• A/C _ $16,773.00 $15900.00 }I _ $17,764.00 $16,602.00 $16,679.00 _ $14,683.00 A ~1S 314 Ton Pickup ExLCab;AC _ 318,634.00 $19,230.00 578 014.00' _116 088.00 518,199.00 7 - - - - - 314 FIeatsId9 Pickup 4x4 ! $19,286.00 NIB _ $20,747,00 $19,479.00 NIB - - 318,149.00 - ---1 Ton CablChassis 5._ _ 6 15,000 GVW, 84 CA Diesel_ $21,656,001 $23,490.00 NIB_ _ $22 406.0 0 522,769.00_ , $22,957.00, 6. 2 1 Ton 16 Passenger V_an $21,372 00 ~521,090~00 520,235 00: 520,895.00 521,057 00 6$20,0-0-6-8-41 --314 Ton Cab/Chassis 7. 1 60" V-8 GVW 8800 $17,230.00 i $16,242.00 + $17,555.0015,666,00; ice- $15,512,00 8. 1 1 Ton 4-Door Crew Cab $26,066.00 $26,990.00 NIB $25,792.00 N)B $25,094.00 I -t• T Delivery In Days,,, 90 35.110 60.90 160 60.90 90 90 l 'Falls to meet spec for cloth seats ! I t I I I I S Q fr 4 ~B 1819 B A Fleet Vehicles RED JIM CLASSIC METRO ALLEN PERMIAN PAGE 2OF2 MCCOMBS MCNATT CHEVROLET FORD SAMUELS AUTOS E December 6, 1995 PONTIAC DODGE AUTOPLEX GMC DESCRIPTION _ VENDOR _ VENDOR_ VENDOR VENDOR VENDOR, - VENDOR 112 Ton Pickup SW8 _ $14,302.00 $13,861.641 NIB $13,687.50 $13,848.00 ~ 112 7 on Pickup LW8 T116 719.00, $15,105.44 NIB $14,500.00_ $15,430.00 s13 761.00 314 on cup B; IC $117128700 $1738816; N18 I $17175_00: $16,850.00 3A. 1 314 Ton Pickup Ext. Cab; A/C $19,013 .00 NIB ~ NIB $18,761.00 $18,630.00 $17171.00 4. 3 314 Fleets ida E[c, 4x4 -,,_______$19,829.00 $19,851.62 NIB $20_,950_00 $19,590.00 _ ' 1 Ton CablChassis _ 5. 6 15,000 GVW, 84 CA Diesel $22 150.00 NIB $22 374.00 $23,995.00 $21,322.00 -7 --t 1 I , 6. 2 1 Ton 16 Passenger Van T $22,083.00 $22,337.36! $21,842.001 $22,995.00! - $21,750.00 314 Ton Cab/Chassis - 7_ _ 1 _ 60" V-8 GVW 8800 _ $17 165,00 $17,420_681 $16,586.00; _ $17,495.00 $16700.00 8_ _ 1 1 Ton 4-Door Crew Cab $25,483.001 NIB $2§,868.00 _ $27,995,00 $26L210.00 - - - 1. _ Delivery In Days 90.120 - 60.90 75.90 1 60.120 80-120 90 F 0'E: MAXWELL DODGE AND PERMIAN AUTOS ARE STATE OF TEXAS CONTRACT SUPPLIERS OF BID +TEMS 2, 3, 3A, AND 4. J ~ 11 i T 4 C A ~w ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES BID BY THE STATE PURCHASING GENERAL ` SERVICE COMMISSION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Resolution 92-019, the State Purchasing General Services Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the General Services Commission purchasing programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF 1 i1L CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such items: PURCHASE ORDER VENDOR AMOUNT 62519 PERMIAN AUTOS $ 86,076.00 62520 MAXWELL DODGE $156,528.00 SECTION 11. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the General Services Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the General Services Commission, and the purchase orders issued by the City. r c r` 1Aendn tJo, SECTIONIII. That should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the General Services Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the General Services Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION IV. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved purchase orders or pursuant to a written contract made pursuant thereto as authorized herein. SECTION V. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this _ day of , 1996. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: - - . APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: , it c ApMd~ Rol, A~.nQa Iten DATE, JAN AW 23; _ CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Rick Svehla, Acting City Manager SUBJECT: PURCHASE OF FLEET VEHICLES - GENERAL SERVICES COMMISSION RECOMMENDATION: We recommend the following list of vehicles be purchased from the State of Texas General Services Commission and the Purchase Order #62519 to Permian Autos and Purchase Order #62520 to Maxwell Dodge be approved. DESCRIPTION OTY VENDOR PRICE EXTENDED TON P/U LWB V8 5 PERMIAN AUTOS $13,761 $ 68,805.00 3/4 TON P/U LW8 7 MAXWELL DODGE $14,583 $102,081.00 3/4 TON P/U EXTENDED CAB I PERMIAN AUTOS $ 17,271 $ 17,271.00 3/4 TON P/U LWB 4X4 3 MAXWELL DODGE $18,149 $54,447. 00 16 $242,604.09 SUMMARY: This recommendation is for the purchase of 16 vehicles for the City of Denton Motor Pool Fleet. Twelve of these units are replacements and four are fleet additions. The old units will be reviewed by the Fleet Operations Division and reassigned to a lighter duty or sold a public auction. The tabulation sheet for Bid # 1819, copy attached, reflects the bid prices for these vehicles listed as items 2, 3, 3A and 4, The State of Texas General Services Commission prices yield a savings of $10,877.00 while offering the same specifications, and delivery service. These vehicles will be inspected and delivered to the City of Denton Fleet Se vice Center, The ordinance approving participation in the General Services Commission Cooperative Purchasing Program was approved by Council April 7, 1992, (Ordinance #R92-019) 'n compliance with Texas Local Government Code Subchapter D section 271.082 Purchasing Program, BACKGROUND: Bid # 1819 Tabulation Sheet with General Services Commission pricing and Ordinance #892- 019, Purchase Order #62519 to Permain Autos and Purchase Order #62520 for Maxwell Dodge, PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Various departments utilizing the new equipment, Fleet Operations and City of r.)enton Motor Pool. 4 CITY COUNCIL REPORT JANUARY 23, 1996 Manea ko. ~0~ PAGE 2 OF 2 roenC~ nyn FISCAL IMPACT: Fund; for the purchase of these vehicles will come from a combination of 1995196 budget funds, Motor Pool replacement funds and Motor Pool Lease/Purchase funding. Respectfully submrLted: Rick Svehla Acting City Manager Approved: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent 6BS.AGENDA I F 18-1 OTHER ID Fleet Vehicles HUDIBURG VILLAGE ALLEN BILL PRESTIGE MAXWELL STATE OF PAGE 1OF2 CHEVROLET, FORD SAMUELS UTTER FORD DODGE TEXAS E December 5, 1996 N. LOOP FORD CONTRACT DODGE PRICES ION _ VENDOR VENDOR _ _ VENDOR... VENDOR TVENDOR VENDOR _ „.VENDOR- _ DESCRIPTION . $13,390.001 512,998,00 513,768 00' $13314.00 5131346.00 t ~ J 112 Ton Picku SWB 813 897.00 $13, $145,00I $43,999.00 - 112 Ton Pic~V LWB $15,284~.00 i $14' . _ 314 Ton Pickup LWB; A1C _ 51fi,773.001 _ $15,900.00; 817176400 515,679.00 - $14,583.00 I - --1014 - '---515 602.00 99A0 314 Ton Pickup ExLCab'AC $18,634.00 $19_1239.00: $18 ,00 a $18,088,00 St8,1 _ 4. 3 314 Fleetside Pickup 4x4 5191286.OD NIB $20,747.00, _ .00 NIB $18'149.00 406--~-- - 1 Ton CablChassis 19 479.00 $$221769.00 $22,957.00 r-- T 8. 6 16,000 GVW, 84 CA Diesel $21,656.00 $23,490.00 N8 22 - i 521, X235.00' _ _ 84 2_ 1 Ton 15 Pass n er Van___ 5211372.00__90.00 520 _ _320,895.00_ 321,057 00 _'820,006 314 Ton CablChassis _517,555.00, 315,656.00 8(5,199,00 7. _,.60' V-8 GVW 8800 $17,230.00 ~ $15,242.00 $15,5(2.00 8_ _ 1 1 Ton 4-Door Crew Cab__ $?5,086.00: $26,990.09 NIB r _ $25,792.00, NIB $25,094.00 T Delivery In Days:~_- 90 _6_0.90__' 150 60 9080 90 _ *Falls to meet spec for cloth seats II I' ~ I I , I I r i i 1816 A Fleet Vehicles RED JIM CLASSIC METRO ALLEN PERMIAN PAGE20F2 COMBS MCNATT CHEVROLET' FORD SAMUELS AUTOS TE December 5, 1995 .1NTIAC DODGE AUTOPLEX _ GMC j DESCRIPTION VENDOR _ VENDOR VENDOR .VENDOR VENDOR_ VENDOR £ 112 Ton Plck~SWB 5141302.00 $113,8611.64' NIB a13L__ ~20 --112 Ton Pickup LW8 $15,719.00'i T = 58T.6Q- $13 848.Q0 L6,10 - r _ 3I4 Tan Pickup LWB; AI C 5_44 NIB $14,600.00 $15 430.09 $1.3,761.00 3 7 L-76- .00 $16,850.00 _ t' _ . --$1---7'28700 $ .7 _tl71366 .16 . NIB t- $171 3A. _ 1 314 Ton Pickup Ext. Cab; A/C $19,013.00 NIB ~ NIB $18,761.00 $18,630.00 $17,271.00_ 4. 3 314 Fleetside Picker 4x4 $191829 00 , $19,851.62,1. NIB $20,950.000_ _ $19,590.00 1 Ton Cab/Chassis _5__~_. 6 T16,000 GVW, 84 CA Diesel _$22,160A NIB $22,374.00' $23 995AQ $21,322.00 I 6. 2 1 Ton 16 Passenger Van $22,083.001 $22,337.36. $21,842.00__ $22,995,00 $21,760.00- 314 Ton Cab/Chassis 7. 1 60" V-8 GVW 8800 $17,155.00 $17,420.68 $16,586.00 $17,495.00 $16,700.00 8_ 1 7 Ton 4-Door Crew Cab $25,483.00 NIB $26,868.00 $27,995.00 , $26,210.00, Delivery in Days: 90-120 6D•90 75.90 60-120 _ 80-120 90 j I l 3 NOTE: MAXWELL DODGE AND PERMIAN AUTOS ~ ARE STATE OF TEXAS CONTRACT SUPPLIERS OF BID ~TEMS 2, 3, 3A, AND 4. I f. t PURCHASE ORDER NO: 62519 THIS IS A This nu. ber must appear oa all CONFIRMIRG ORDER invoices, delivery slips, cases, (IF MARKED) 'ctri b es, packing slips and bills. DO NOT DUPLICATE R Bid No: Date: Ol 16 96 Page No, Ol '5 -j ED F CITY OF DENTON TEXAS PURCHASING DIVISION / 901-B TEXAS STREET 7 DENTON, TEXAS 76201-4354 t 8171383-7100 D/FW METRO 817/267-0042 FAX 817/383-7302 VEN OR . C- c W E/~ PERMIAN AUTOS INC. DELIVERY CENTRAL RECEIVING 814 ADO ESJ X o 1115 S. GASTON ADDRESS EQUIPMENT SERVICES CRANE, TEXAS 79731 804 TEXAS ST. DENTON, TEXAS 76201 VENDOR NO. PER48535 DELIVERY QUOTED 04 15 96 FOB DESTINATION BUYER TS TERMS LINE QUANTITY LkdIT DESCRIPTION UNIT, PRICE AMOLNT 001 5 EA VENDOR CAT.# N / A MFG NAME $13,761.00 $ 68,805.00 CITY f 96890 PICKUP 1/2 TON LWB V8 002 1 EA VENDOR CAT.4 N / A MFG NAME $17,271.00 $ 17,271.00 CITY / 96890 PICKUP EXT. CAB 3/4 TON LWE V8 I PAGE AL: $86,076.00 GRAND TOT 11111: $86,076.00 01 720 025 0584 9104 86,076.00 /ENOOR INSTRIiCTIONS: 3 Terms - Net 30 lu,ie„ o men s. 'Perm edl I, Send original invoice with duplicate copy. 4. Snipping instructions F.O.B. Cestinetion prepaid W,I.,. ah.,.,. e.ri Oil: to - Accounts Payable 5. No federal or state sales taa shall be included 215 E. McKinney St, m prices billed, Purchasing ivision Denton, TX 76101-4299 PURCHASING S u PURCHASE ORDER NO: ,;2520 THIS IS A ber must appear on all CONFIRMING ORDER in oicOll delivery slips, cases, (IF MARKED) t cl is., b xes, packing slips and bills. DO NOT DUPLICATE I It Bid No: Date: 01 16 96 Page No. Ol ~M CITY OF DENTON TEXAS (`y+ PURCHASING DIVISION / 901-8 TEXAS STREET / DENTON, TEXAS 76201-4354 i p 817/383-7100 D/FW METRO 817/267-0042 FAX 817/383-7302 IVE 1' V Ei L ` MAXWELL DODGE DELIVERY CENTRAL RECEIVING ,314 4D R P.O. WYK 203305 ADDRESS FLEET SERVICES p'. AUSTIN, TX 78720 804 TEXAS ST DENTON, TEXAS 76201 VENDOR NO. MAX49550 DELIVERY QUOTED 04 15 96 FOB DESTINATION BUYER TS TERMS LINE TITY UNIT DESCRIPTION ' UNIT PRICE AMOUNT 001 7 EA VENDOR CAT. # N / A MFG NAME $14,538.00 $102,081.00 CITY # 96890 PICKUP 3/4 TON LWB V8 002 3 EA VENDOR CAT. # N / A MFG NAME $18,149.00 $ 54,447.00 CITY # 96890 PICKUP 3/4 TON LWB V8 4 X 4 i PAGE TOTAL $156,528.00 0 720 025 0584 9104 156,528.00 GRAND TOTAL $156,528.00 %ENDOR ENSTRJCTIONS 3. Terms - Net 30 w^'r ^.P. "yet L Send original invoice with duplicate copy 4. Snipping instructions: F.QB. Destination prepaid tD.-.n ..^.,..,r. r.ai Silt to - Atcounts Payable 5. No federal or state sales taR shell be included 215 E. McKinney St. in prices billed Purchasing Division . DeMOn. Tlf 75201-4293 PURCRASING . , . b 1 1 Agenda Ho. RESOLUTION N0. "r. A RESOLUTION AUTHORIZING PARTICIPATION IN PURCHASING PROGRAMS OF THE STATE PURCHASING AND GENERAL SERVICES COMMISSION; DESIGNATING A CITY REPRESENTATIVE TO SIGN AND DELIVER ALL NECESSARY DOCUMENTS IN CONNECTION THEREWITH; AND PROVIDING AND EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas, pur- suant to the authority granted by Sections 271.681-271.083, Local Government Code, V.T.C.A., as amended, desires to participate in described purchasing programs of the State Purchasing and General Services Commission, and WHEREAS, the City Council is in the opinion that participation in these programs will be highly beneficial to the taxpayers of the City of Denton through the anticipated saving to be realized; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That the City Council of the City of Denton, Texas does request that the State Purchasing and General Services Commission include its stated need on certain of the Commission's annual contracts. SECTION II. That Tom Shaw, Purchasing Agent, is authorized and directed to sign and deliver all necessary requests and other docu- ments in connection therewith for and on behalf of the City of Denton, Texas. SECTION III. That the city council acknowledges the City's obligation to pay participation fees established by the Commission. SECTION IV. That this resolution shall become effective imme- diately upon its passage and approval. PASSED AND APPROVED this the day of 1992. BOB CASTLBBERRY, MAYOR