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Home My WebLink About10-15-1996 i I 1 ~rwvrwwn I mw t 441 0 000wd fad (r,aJl~ owrl Irwk •f fwu ~lfuohN *0 Ampqo Do"% so 44 Gunl~wl ai s 0 4 1 4 0 ow 14 **0 154 oflh01~ow INS +rA ldN 6 f w, . N 0MNid C"" Too" 1~ Y.Y~iwr2wNw,~M M w, M w pf 0# mm~ ,yy '1N+^~ PWlfw+lMr,blNM by NNI w ~fNlf~d9 N V 1 hch ow rrI fawar M MM iNwNNnn n~rfA f od ON l~l 4 Ana MI wrw 4' J* 4 M "W . 40 "wr~ ~ ~r In F" .ar. ►s q0y 60 M NiProw 5009 (o 0 ho ro"f- MwMa~w Nom/ MMrk Mk MMMII . rf r~ 1 Wlm via rout" 14~i . ► f ` ' ` 4 of all w on400 AMMM tw~► N~ tit It clikt, WHO .......r.v.. ~.Y.MwY.. u wMY 4 Y1pYYIY1 .M.M.W~I.Y~W.M«..»+.,l.u«.Y .I O.iMtl.IMY.Y./.~ IMF... M'YI V WW.M..MM....,W1~- M^••••«• 4 •~.1w.«Iw.vwVM..MN,IM ..1..M11uM.I.M.II ` y 1 tN~fkfM 00 dwvw 3! M waa1M hl l ~ No N ! of 1h0 I►M~ wed ~N fI+~V Mo ow ow 1 r,."• ~,.r ,1 I.....,.,.,..,.~.~,..,,.. yMl~ w ' flY~ ~ Tvwy~I M11~ Y 4-' ,Y #P~1r~A11~ fit. 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(JM WIWNOW l091NOD) 'ONOO _..........y. id Aid -.77 ir' _ cZ 0t'6 r i r IN i i Ji '>r 1 Y~BlUS ard"d t i i !f f ~ I I tr 'f ~rwe rwwnarMwa ~+~w - ~r 2 1f I ± i II 1 fl i ~i 1 CITY" COUNCIL AGENDA PACKET ~s . October 15, 1996 V ~s l ,~7'r AGENDA Agenda No,_-----°~--- CITY or DF?NTON CITY COUNCIL October 15, 1996 Datr~- Closed Meeting of the City of Denton City Council on Tuesday, October 15, 1996 at 5:45 p.m. in'tho Civil Defense Room of City Hall, 215 E, McKinney, Denton, Texas, at which the following Items will be considered; NOTE: THE CITY COUNCIL RPSERVES THE RIGHT TO ADJOURN INTO CLOSED MEETING AT ANY TIME7. REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE, 5.45 p.m, 1. Closed Meeting; A. Legal Matters Under TEX, GOV'T CODE Sec. 551.071 1, Consider a settlement offer in GTE Southwest v City of Denton et al B. Real Estate Under TEX, OOV'T CODE Sec. 551,072 L Consider adoption of an ordinance approving an agreement between the City of Denton and Watmart to provide for the payment of cost of condemnation of a stormwater drainage easement, 2. Consider adoption of an ordinance authorizing payment of the $79,461.98 Judgment In City of a ton Y, John Karvountar C. Personnel/Board Appointments Under TEX, OOV'T CODE Sec. 551,074 Regular Meeting of the City of Denton City Council on Tuesday, October 15, 1996 at 7;00 p.m. In the Council Chambers of City Hall, 21.5 E. McKinney, Denton, Texas at which the following Items will be considered; i 1, Pledge of Allegiance A U.S Flag 13. Texas Plag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one and indivisible," 2. Consider approval of the minutes of August 9 and 13, 1996, 3. Citizen Reports A. Receive a citizen report from Fran Miller regarding "Make A Difference Day" B. Receive a citizen report from Todd Palermo regarding City owned parking meters adjacent to UNT at Avenue A and Hickory, C, Receive a citizen report from Ross Melton, Jr., regarding litigation against the i I W City of Denton City Council Agenda October is, 1996 Page 2 i i City and the Open Records Act, D, Receive a citizen report from Uessie Goodson regarding SPAN and the City of Denton, t E. Receive a citizen report from Teresa Haynie regarding safety on Spencer Road. i i F. Receive a citizen report from Leroy Barber regarding lano markings on Spencer Road, 0. Receive a citizen report from C,B, & Vernle Wilson regarding safety on Spencer Road, H, Receive a citizen report from Frances Cannon regarding safety on Spencer Road. 4, Public Hearings i Hold a public hearing on the status of the Community Development Programs, B, Hold a public hearing and consider an ordinance to rezone 1,0362 acres from the Multi-Family-1 (MF-I) zoning district to the Planned Development (PD) zoning district with approval of the detailed plan for a private dormitory. This tract is located on the south side of Prairie Street, Approximately 350 feet west of Avenue F, (Z-96-034) (The Planning and Zoning Commission recommends approval, 6- 0). C. Hold a public hearing and consider an adoption of an ordinance amending Section + 34-410 34-42, and 34.43 of the Code of Ordinances to provide a new procedure for development contracts eliminating the requirement of a payment bond and a performance bond; and to providu for a one year warranty on public Improvements from the date of final completion and for other conditions as stated herein, (The Planning and Zoning Commission recommends approval, 7-0), 5, Consent Agenda Each of these items Is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations, Approval of the Consent Agenda authorizes the City Manager or his designee to Implement each Item in accordance with the Staff recommendations, The City Council has received background Information and has had an opportunity to raise questions regarding these items prior to consideration, Listed below are bids and purehase orders to be approved for payment under the Ordinance section of the agenda, Detailed back-up information Is attached to the ordinances (Agenda Items 6,A- 6,C), This listing Is provided on the Consent Agenda to allow Council 11: Rt11` Y City of Denton City Counoil Agenda October 15, 1996 Page 3 i Members to discuss or withdraw an Item prior to approval of the Consent Agenda, A citizen may not speak or fill out a "request to speak" form on an item on the Consent Agenda unless the Item is removed from the Consent Agenda, The speaker shall be allowed to speak and the Item shitil then be considered before approval of the Consent Agenda. A. Bids and Purchase Orders; 11 Bid #1953 - Fiberglass Street Light Poles 2. RFSP #1927 - Billing and Collection of Ambulance Fees 3. P.O. #70304 - Davis Water & Vvaste industries i B. Contracts } 1. Denton County - Library Services 6, Consent Agenda Ordinance A. Consider adoption of an ordinance accepting competitive bids and awarding a contract for purchase of materials, equipment, supplies or services, (5,A,1. - Bid #19.55; 5,A,2, - RFSP #1927) i B. Consider adoption of an ordinance providing for the expenditure of funds for purchases of materials or equipment which are available from one source in accordance with the provisions of state law exempting such purchases from requirements of competitive bids, (5,A,3 - P.O. #70304) C, Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the County of Denton for the provision of library services, 7. Ordinances A. Consider adoption of an ordinance annexing a tract comprising 29,115 acres, located approximately 2,000 feet east of Oeesling Road and north of Blagg Road; and temporarily classifying the annexed property as "A", Agricultural District, (The Planting and Zoning Commission recommends approval 7-0,) A-73 B. Consider adoption of an ordinance annexing a tract comprising 96,78 acres, located north of Mingo Road and west of Cooper Creek Road; and temporarily classifying the annexed property as "A", Agricultural District, (The Planning and Zoning Commission recommends approval 7-0.) A-72 C. Consider adoption of an ordinance approving the guidelines for the Rental Rehabilitation Program and eligibility criteria; and authorizing expenditures In excess of $15,000 for projects meeting program guidelines and criteria. I'I k City of Denton City Council Agenda October 15, 1996 Page 4 D. Consider adoption of an ordinance approving guidelines for operation of the City of Denton Optional Reconstruction Program and eligibility oriteria; and authorizing expenditures In excess of $15,000 for projects meeting program guidelines and criteria. E. Consider adoption of an ordinance approving guidelines for operation of the City of Denton Homeowner Rehabilitation Program and eligibility criteria; and authorizing expenditures in excess of $15,000 for projects meeting program guidelines and eriterfa, F. Consider adoption of an ordinance authorizing assignment pay for Fire r Department employees In the classification of Captain who are also assigned to perform the duties of EMS Program Manager: G, Consider adoption of an ordinance amending Ordinance No. 96170 by reducing the interest being condemned from a "fee simple interest for drainage improvements" to a "drainage easement Interest" 8, Resolutions A, Consider approval of a resolution adopting an Investment policy for funds of the City of Denton, B, Consider approval of a resolution recommending that the Denton Main Street Program be entered into the Great American Main Street awards. C. Consider approval of a resolution consenting to the exercise of the power of eminent domain by the Upper Trinity Regional Water District necessary for the construction of the Regional Treated Water Transmission Supply Line for the City of Sanger In the City of Denton. 9, Miscellaneous matters from the City Manager. i K Consider nom{natlons/appointments to the City's Boards and Commissions. 11. Vision Update 12. Official Action on Closed Meeting Items; A. Legal Matters B. Real Estate C. Personnel D, Board Appointments 13. New Business I Ya City Of Denton City Council Agenda October 15, 1996 Page 5 This Item provides a section for Council Members to suggest Items for Future agovdas, 14, Possible Continuation of Closed Meeting A, Legal Matters Under TEX, GOVT CODE ,Sec, 551,071 I B. Real Estate Under TEX GOV'T CODE Sec, 551,072 J C. Personnel/Hoard Appointments Under TEX. GOV" I' CODE Sec, 551,074 t ( CI, RTIPICATE I I earthy that the above notice of meeting was posted on the bulletin board at the City Hall of the city of Denton, Tetras, on the day of 1996 at O'clock t i CITY SECRliTARY 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 SCH13DULBD MEETING, PLEASE CALL THH CITY f SECRHTARY'S OPP= AT 566.8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RBLAY 'I'X SO THAT A SIGN LANGUAGE INTERPRETER CAN BH SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE, s i ACCO0344 CITY OF AENTON CITY COUNCIL MINUTES AUGUST 91 1996 The council convened into a work session at 9100 a,m# tit the Radisson Hotel (Trustees Room), 2211 136-E North, PRESENTt Mayor Miller) Mayor Pro Ten Brock) council Members Beasley, Cott, and Young, ABSENTI Council Members Biles and Krueger 1, The Council received staff presentations of the propotsed 1996- 97 budget for the city of Denton, Mayor Miller stated that council would be receiving answas^s to any questions which they might have concerning the budget. Council would not be asking detailed questions nor receivin4) details regarding the budget at this point in time. City Manager Benavidos stated that this was a policy-oriented F budget with a foouh on issues for policy rather than opsoifios. This budget was a self-supporting budget for reoccurring costs, balanced on-going expenses with reoccurring revenues, addressed the need to pay for increases in the operating expenses associated with the hiring of 12 additional fire .fighters, the 1995-96 pay program and a bond rating upgrade. 1, General Fund Reserve Level Council had adopted a policy of having a 10W fund balance which was key in bond rating analysis, Due to the amount in the asneral Fund Reserve Level, there were opportunities for one time expenses for building needs, vehicles, a pay merit award, an incentive program, street buttons and miscellaneous one time needs such as a utility attorney, office furniture and equipment for that attorney, Council Member Biles arrived at the meeting. 2. Revenues A, Sales Tax cent to reduce property taxes - this formula was based on the last 12 months actual figures from the State Comptroller's office which did not allow for projections or forecasts on how the sales tax would rise or fall.. It was estimated that there would be a $4,300 decrease in sales tax which did not generate a property tax decrease based on the Statefs required formula. Council Member Cott stated that he could accept a pay merit award but did not accept how it was done. A memorandum had been sent out to all employees and it was now anticipated that this was a done deal. City Manager Benavides stated that a memorandum was given to employees as pay and benefits were important. The memorandum indicated that this was a proposal with an explanation that the Council would still be evaluating that proposal. 2 City of Denton City Council Minutes September 9,1996 Page 2 Mayor Miller stated that this Was done to better communicate with the employees regarding this situation, B. Sales Tax - one percent general purpose tax ^ the proposed budget projected a 4.5$ growth for 1996-97 over the current year estimate, Currently the City was experiencing a 3.26% growth over the prior year, C, Property Tax - the proposed property tax rate was $.5309/$100 valuation which represented a 1,85% reduction in the tax rate. The proposed rate represented the fourth consecutive year the rate had been set below the effective tax rate and the seventh straight year the rate had been set at or below the effective rate. D. Swimming Pool Fee - the current fee was established in 1984 at $1,00, The new Parks strategy was to review fees every j three years and recommend adjustmento as required to offset costs and market positions. The proposed $1,25 fee generated an additional $13,775 in additional revenues, 3. Pay Plan Adjustments Tom Klinok, Director for Human Resources, stated that this would be a 3% one time lump sum award effective October lot and paid on October 4th. This would be for Civil Service and non-Civil service employees and regular full-time and part-time employees, civil Service would oontinue to receive step increases, probationary employees, employees on disciplinary status or performance improvement plans would receive the award if they successfully completed the plans. The cost to the General fund was $690,000 with a total cost of $1,0701965. Another proposed program was the Incentive Plus Program which would provide monetary and non- monetary awards to employees in the amount of $25•$250, Department heads would develop the selection system with awards being given any time of the year, Awards could be given for innovative ideas or suggestionst for an employee's high level of professionalism for an action which saved health, life or property/ and unique and beyond usual customary activities. Approximately $81,000 was budgeted for this proposed program. 4. Benefits Adjustments A. Health Insurance - it was suggested to continue with Harris Methodist with a 4,1% rate reduction for HMO only selection effective January 11 1997 with a related reduction in premiums for retirees. B, Retirement (TMRS)- the City was currently at a 6% two to one match program with Denton being only one of two cities not at a 7$ two to one match in a metroplex survey. The cost of a 7% two city of Denton City Council minutes deptember 9,1.996 Page 3 to One match was $1761992 for on-going costs, There was no proposed change in the 1996-97 benefit, C, Work Force Diversity - it was recommended by the Employee's Work Force Diversity committee to have additional recruitment efforts and to sponsor the train-the-trainer program for thA National Coalition Building Institute and sponsor a diversity community luncheon, 50 Public Safety A. Police 1, State and Federal brants - the Cityy was applying for a five year State grant to hire a juvenile/domestio violence investigator and a one year Department of Justice grant of $106,800 to purchase mobile date computers with a City match of $9,682, 2. Projeoto bilingual /bicultural community - this as a coordinator. proposed would ibe rampnsibie for the initiation, facilitation, and promotion of availabla services to the Hispanic community, The position would be assigned to both the East and West community offices, recreation oo ters, and the central Police station, The position could also leverage future grants. The cost would be $48,000 to the budget for a social worker in the Family Services Unit of the Police Department, Council Member Young stated that he had a problem with this Having someone who only not speak English. spHeealso Spanish a would with the expense of this item. civilian duty officersnwereaproposedninrtherupcomingibudget. The Police Department maintained the management and control of approximately 18,000 pieces of property. Currently a full-time detective spent 70% of his time managing this property. It was proposed that a civilian property technician would replace that officer. The other two positions would be the addition of two civilian duty officers which was a continuation of a program started 4-5 years ago. This allowed police officers to raturn to the field where they should be and also allowed an increase in the diversification of the Police Department, 4. Miscellaneous proposed expenditures in this category would be office supplies associated with the new Public Safety Computer System and an additional $4,000 for an area coordinator for the COPS program, Cityy of Denton city council minutes September 911996 Page 4 S. Fire 1. Dispatchers - it was proposed to add three additional dispatchers to the proposed budget to help meet the minimum staffing requirements for quality control for emergency response, 2. EMS non-emergency transfer service - this program was the non-emergency transportation of patients between hospital to hospital, extended care facilities, a patient's home, health care facilities and specialty clinics. The program would add six full-time civilian transfer attendants at a oozt of $124,000 and would generate $214,000 in additional revenues. The net revenue would be used to fund reoccurring public safety packages. 3. Miscellaneous - truck diagnostic equipment for an in-house mechanic, breathing apparatus, fire rescue equipment, a fire internship position, and the reclassification of 3 drivers to battalion chiefs were recommended in the proposed budget. Council Member Young stated that the increase of pay for the drivers to battalion chiefs was too great an increase. There was a need for more minorities in the Fire Department. 60 Fire Reserve Fund - this fund was created to phase in the fiscal impact of opening new fire stations, As of October 1 the balance of the fund would be $84,000 and was included in the 1996- 97 proposed budget. The fund would be closed out at this point in time. 7. Other Agency Contributions - The Human Services Committee had recommended Community Development Block Grant contributions of $186,000 and the Human Services Committee recommended General Fund contributions of $1630868 with a total contribution to Human Services agenoies of $3490868, 8. Tax Exemption for persons over 65 - the goal of the Council in 1988 was to increase exemptions from $16,000 to $25,000 over the Yyears, The current exemption was $23,000 and the proposed budget lnoluded an increase of the exception of $1,000 to $24,000, 9. Vehicles - the 1996-97 proposed budget included $345,894 to purchase and replace 44 General Fund vehicles, There was a one- time expense of $171,442 with an on-going expense of $174,452, 10, Long Range Technology plan - the first phase of the Long Range Technology plan provided PC's for employees who needed them, but currently did not have one, It also replaced PC18 that were five years old or older, it ungraded current equipment (memory/ storage) and connected all PC's t( the local area network and mainframe and standardized software, Two new positions were proposed in the r.. ti i. kl , City of Denton City Council Minutes Septomber 901996 Page 5 i budget for a network manager and a computer system trainer. 11. City Hall in the Mall - 12.5 of the counter utility payments were made at the Mall, The current hours were 11100 a.m. - 8100 p, m, Monday through Friday. Proposed hours were 10100 a.m. - 9100 p,m. Monday through Sai-urday and 12100 noon - 6100 p,mo on Sunday, The office would be staffed with three part-time customer service representatives and one part-time nomputer operator, Council Member Beasley asked about transferring current employees to the City Hall in the Mall rather than hiring three new employees. I Harlan Jefferson, Director of Fiscal operations, stated that although the number of actual customers in City Hall was down, the deportment was moving from working with customers in person to working with the customers on the phone, 12. Main Street - it was proposed in the budget to use Lalor funds to pay for an Assistant Main Street Managerfs position at a cost of ~ $29,209, 13. Facilities - there was a backlog of building needs and $568,466 worth of one-time expenditures, The expenditures would include ADA compliance, safety hazards, replacing heating and air conditioning units, maintenance and repair, and renovations. 14. SPAN - it was anticipated that there would be a 43$ reduction of Federal funding thus necessitating a need to redesign the existing route system. The City would be asking SPAN to consider eliminating fixed routes and demand services during certain times of the day. The budget contained a proposed transfer of funds from a previous Federal grant to meet 1996-97 needs on a one-time only basis. 15. other Services A. Leqal - it was proposed to hire a Utility Attorney for in-house representation of sul.ts filed against the City, There had been an increase from 20W to 60$ in these types of suits, A large portion of the current suits and legal issues were related to utility matters. B. General Government - due to the growing demand for special projects/ increased size and frequency of agendas, a request was being made for a part-time Clerk III in the City Manager's Office, This position would report to the City Secretary, 16. Recreation Fund - proposed expenses in the 1996-97 budget included computer registration as a one-time expense, sound and recreation equipment for a one-time expense, gymnastic equipment r Aoendii City of Denton City Council Minutoo Adanda Item-_Ze September 9, 1996 halo Page 6 for a onetime expense, fitness equipment for a one-time expense, a pool feasibility study for a ona,f-Jme expense and a swim team expansion which would be an on-going expense. Mayor Miller stated that he had received a memorandum on April 19th from the Finance Department, which called for a it reduction in the ad valorem tax. That was not generated by the sales tax for property tax reduction because the calculations by the Comptrolleres office did not support that. The budget proposal still called for that reduction. Based on either decisions made last year or the dynamics of ongoing programs, $1.5 million was needed this year just to fund on-going programs, if that did not have to be done, a 7 cent reduction in ad valorem taxes might have been possible, 18. Other funds - internal service funds - This category included the warehouse, motor pool, Tourism & convention, Emily Fowler Library, police confiscation, and debt service. The warehouse category included a shed enclosure, a conference work room, a desktop color copier and a laminator. The motor pool had no changes from the current year, The Emily Fowler. Library fund included supplies and maintunanoe, This was the first time this was included in the budget document. Police confiscation fund included seizures of vehicles, property, and cash. 19. Designation of fund balance - in 1983 $518,000 of the General Fund bt?.gnce was designated for future needs. A comprehensive search did not reveal a specific purpose for this money. The Finance Department's option was to use for part of this money for streets with additional money for Council consideration. 17. Major issues - Utilities A. Electric - there was a $77,296,209 revenue projection with a projected $75,225,883 expenditure budget request. The KWSI sales projection was 3,2$ above the 1996 estimate, Major budget/program changes Included $1 million for a CTS/oomputer system upgrade and administrations $1 million for power supply options n production; $1.9 million increase in 1202/street rental transfers in administration) $2.2 million decrease in purchased power/fuel cost in production; the elimination the demand management division with the transfer of functions to administration; a now Service Center which was Included in the CIP for dispatch operations; and proforma included $2.6 million for TMPA debt retirement fund. New positions for Electric included a new utility service worker in metering, a new secretary in distribution, a new half-time safety specialist in administration, a new temporary/seasonal employee in dispatch operations, a new 1/4 office clerical position in communications. It was proposed to havo no change in the base rates and a proposed energy cost adjustment increase on October let from 1.90 cents to 2.00 cents city of Denton city council minutes September 9,1996 Page 7 with another change projected on aarntary let, The average ECA for a full year was projected to be 2,08 cents, In order to meet the charter requirement to not transfer more than a 6% return on asset, 3,6$ needed to be on revenues and 4% on street rental. The Pubic Utility Board indicated that as that was a 4$ street rental fee it should be listed on the utility bill, If that were done, the electric rate would have to be decreased by that amount. The total number would be the same, council Member Biles asked if that was a rate issue or a disclosure issue, Nelson indicated that its would be a disclosure issue. Tire Public Utilities Board felt that it should be noted on the utility billn. council Member Biles indicated that as it did not alter the amount of the utility bill, he was not in favor of ohaiiging the billing system. Consensus of the council to keep the billing system as it current was sent out to customers. B. Water - there was a $15,624,309 revenue projection and a $151021„382 expenditure budget associated with the Water Department, The $4,752 billion gallon sales projection would be close to 1996 estimate, Major budget/program changes included increased costs by $7400000 due to refinancing the Ray Roberts debt which would provide significant long term savings; $350,00 of the $456,000 reserve would be used for water tank painting; and a $331,500 decrease in AOX transfers (5.6% of rate revenue). New positions included a new Director of Water/Wastewater Field Services with Engineering and Drainage Department sharing 40% of the funding. There would be no rate changes in the Denton rates but the wholesale rate to the Upper Trinity Regional Water District would he increased by 1,568. 0. Wastewater - wastewater projected $11,032,551 in revenues with $10,3431596 projected in expenditures which was below 1996, Major budget/program changes included $1 million budgeted for electric debt repaymentl a $606,100 decrease in R07 transfer (5.6% of rate revenue); and a $108,800 increase in debt service for $2.750 bond sale in 1996. New positions included a new Director of water/Wastewater Field Services with Engineering and Drainage funding 40$ of the position; a new Administrative Assistant T in treatment] a transfer of a welder/fabricator from the Machine Shop and a now temporary Environmental Monitoring Technician in pretreatment which was grant funded. There would be no change in Denton rates but the wholesale rate to Corinth/UTRWD would be increased by 3.2%. l5 'r City of Denton City Council Minutes September 9,1996 Page 8 D. Solid Waste - $6,712,672 revenue was projected with a $7,100,938 expenditure budget request. Major budget/program changes included completion of the landfill expansion in 1997 for $3,2 millionl the operating portion of the budget would be essentially unchanged from 19961 the recycling program would be held to the 1996 funding lever a $462,800 inorease in debt service for a $5 million bond sale in 19961 $75,000 of $150,000 for container purchases to come from reserves in the commercial area. New positions included two new positions. A transfer would be made from the Machine shop (welder/fabricator, and maintenance mechanic), a new light equipment operator in recycling, and the elimination of a Maintenance Worker T position in Residential. There would be no change in residential rates with a 13$ increase in commercial rate revenue, a 160$ dumpster increase average), an 8.1% open top increase (average), and a 5.7$ eompae or increase (average). The proposal would continue to restructure rates to encourage larger containers with fewer pickups, The landfill rate would be increased from $7,00 to $8.20 per cubic yard, the landfill rate for outside the city customers would be increased from $16.00 to $16.75 per cubic yard. E. Fleet Services - there was a $21428,122 revenue projection with a $2,440,622 expenditure budget request. Major budget/program changes included a new fleet services garage budgeted in 19971 a $1 million loan from Electric reserves) the elimination of the machine shop division with functions being transferred to the Electric/Wastewater/Solid Waste Divisions. New positions included the transfer of 3 machine shop positions to the Wastewater and Solid waste divisions. Rate changes included increasing the garage rate from $40 to $42 which was 85% of competition rates and increasing gas/diesel revenue cost margin by 6 cents (estimated gas price of $1.05 per gallon) 20. Economic Development Corporation City Manager Benavides stated that the Economic Development Corporation (EDC) Board needed to submit a budget to the City Manager to be presented to the Council for consideration and approval. Staff had been assisting the EDC staff to develop a budget. The EDC was developing performance measures which indicated what the EDC would accomplish with the money asked for, originally the EDC had asked for a $365,000 transition budget. Some money given would be rollover money ($40,000), the EDC would continue to received $85,000 from the Utility Department and the General Fund would have to find $72,000 to reach the EDC's new budget amount of $97,000. Council Member Biles stated that, the privatn sector money was not included, Herb Prouty, City Attorney, replied correct, e, City of Denton City Council Minutes September 9,1996 Page 9 City Manager Benavides stated that the EDC indicated that they would be spending the money faster than first assumed so that the rollover amount might be less and additional funding would have to be found to make up the difference. The money would be used for supplies and services rendered to the EDC, Quite a bit of money was a transfer to the Chamber to do work for the EDC, That figure did not include time spent by himself, the City Attorney, the Executive Director for Finance, and other staff on the project. Council Member Bites stated that there was an absence of administrative transfers, City Manager Benavides replied correct, City Manager Benavides stated that the Chamber was receiving money for work from the EDC but City employees were not being reimbursed. Council Member Beasley asked if the EDC was just funding what the Chamber wag already doing. Council Member Biles stated that previously the city and the private sector were putting money into an economio development fund, Out of that account, salaries were pal.d for economic development and supplies, In the beginning of the formation of the corporation, it was indicated that it had to contract with the chamber and would have to oontinue until the sales tax election, Mayor Pro Tom Brock stated that in the past, those activities were funded half from public funds and half from private funds. The proposal was to fund all with public money. City Manager Benavides presented outstanding issues associated with the EDO - (1) Would the transitional budget be funded with General fund dollars?l (2) Would the entire year be funded?, (3) Would the funding only be supplied until the election?) (4) should the election fail, what would be the next :;top?; (6) If the Council decided to providing the funds, would one-time funding sources be used? Council Member Biles stated that what the EDC proposed would be entirely from public dollars - no matter where they came from either general fund or utilities. The private sector money would stay at the Chamber for some of their current projects which were not in the realm of the EDC. Council Member. Cott stated that if this was public money, then goals and objectives needed to be set; for them for the next six to twelve months. If those goals and objectives were not met, then discontinue the funding. City Manager Benavides stated that that was one of the requirements i City of Denton City Council Minutes September 9,1996 Page 10 of the ordinance. The EDC had to provide produotivity/performance measures tied to the dollars provided by the City. City Attorney Prouty stated that the usual process was to have a sales tax election and than form the EDC, City Manager Benavides stated that there might have to be an interim budget based on the passed sales tax. City Attorney Prouty stated that there might be the need for a contingent budget as part of promoting the election to make it successful, This would develop and communicate to voters what was going to be done with the money. Council Member Young stated that there was a need to start work on Selling the idea of the sales tax as people were having problems with the idea of the EDC buying land, it was felt that this was government competing with private enterprise, Council Member Beasley stated that as the process was done in reverse with the formation of the corporation before the approval of the additional sales tax and as the EDC had contracted with the Chamber to pay for services the Chamber previously provided, she felt it was best to ask the EDC to continue those traditional activities with the Chamber which were now in the EDO and funded with utilities money, After the sales tax election other activities could be started, Council Member Bites stated that the city and the EDO could riot spend money to promote the eeonomio development sales tax. There was a plan to use the private sector $40,000 by the Chamber to promote advertising for the sales tax election, Council Member Bites stated that right now the City was putting money in the EDC and the EDC was giving money to the Chamber of Commerce, He had made the observation to the Chamber of Commerce Board of Directors and the Executive Committee, that if Council did not provide the Chamber funding by moving Ken Burdick to the EDC immediately, the Chamber would financially fail at that point in time because they had signed leases for equipment and that was why he had pushed to have the EDC contract with the Chamber for a transitional period of time. His suggestion, at this point in time, was that the EDC was a City board. Therefore, the City had an obligation to fund the EDC through the entire City fiscal year which took funding to September 30, 1997. However, tie suggested that the Council adopt a resolution that stopped that obligation of the EDC contract with the Chamber effective March 31, 1997 which was the Chamber's fiscal year, if that was done in this budget with that resolution, it would provide the chamber time, from March 319t, to develop their own budget without the EDC funding, if the EDC wanted to have Ken Burdick as an employee doing economic f l} :tt! City of Denton city council minutes September 9,1996 Page 11 development, than the EDC, after April 1st, would have him working for responsibility for its boarddandhwouldsremove the b oP economic development Prom the Chamber, Mayor Miller asked for council response to Council Member Bileat proposal, Council Member Young stated that he was loot behind the proposal, Mayor Pro TOM Brook felt that the City~s formation of the EDC Was based on the idea that there would be a new source of funding. That was the only reason for the formation of the EDC, Sh that a mistake was made in appointing the Board before t e felt tax election, he sales i Council Member Biles asked if the economic development sales tax did not pass, was Mayor Pro Tom Brook recommending that the EDC be dissolved, Mayor Pro TOM Brock indicated that that was one of the issues which still remained. She was concerned about using c3erieral Fund dollars to increase the funding to the Chamber, Mayor Miller stated that Council Member Biles' suestis to set a deadline to continue to contract with the Chamberoandathen discontinue funding after that date, Mayor Pro TOM. Brook stated that over the last several months she had lost confidence in the EDC Board, She felt that Council Member Bites had a good point in that there needed to be a decision on the issue, City Manager Benavides stated that the City would meet the Chambrts commitment until March 31st, The City would treat it as any other board, support them with staff and incur the coat involved in economic development until the election. After that point in time, they would have their own money to hire their own staff, Mayor Pro Tom Brock felt that the City would have to give the Chamber considerable staff support until after the sales tax election. Council Member Biles felt that the Chamber had not been effective in delivering the product for which the City had been giving them money for over the years, it was time for a policy decision to be made and time to move forward. Mayor Pro Tam Brock stated that several years ago, the City entered into a contractual, relationship with the Chamber, The city was c City of Denton city Council Minutes September 9,1996 Page 12 going to share the cost of an economic development operation which would be based in the Chamber, At the same time, the City would have an economic development office in the city government, XP the Council followed Council Member Biles' suggestion, it would be saying that it felt the chamber had not done a good job and therefore would be ending that contractual relationship. There was another body in place which had a contract with the chamber, There was a charter for that body and Council Member Bites' suggestion was to give that body more direction. But the charter of that body was ohAnged drastically from the State direction. Every bit of council control, which was not absolutely required by State law, 'was removed. The EDC would not have to follow the Cityfs control except by the annual review of the program and budget. Mayor Miller stated that a positive view of the proposal was that since the EDC had been formed, which was set up at the request of the Chamber and others, a way to provide economic development was to make the board accountable and responsible as a City board. There would be an obligation to continue to contract with the chamber until March 31st, currently the EDC had been spending most of their time worrying about the funding issue of the sales tax election instead of getting on with economic development. As per an earlier discussion, the EDC would begin to funotion as an economic development corporation and that the responsibility for determining the sales tax election and associated factors would no longer be their responsibility. That would be the responsibil' I.ty of a task force established by the City Council, The Council appointed the members of the EDC and the law clearly stated that those members served at the will of the Council, if one or more of those members did not do what the Council needed to be done in terms of economic development, the Council needed to replace those members, Mayor Pro Tom Brock stated that this might be perceived that the City was blaming the chamber for economic conditions. Cou»oil Member Young felt that the council was not indicating that the system did not work for the past 10 years, it was indicating that things could work better, Mayor Pro Tom Brock stated that she had heard that the Chamber planned to house the EDC in conjunction with their building expansion. The Council was proposing to spend the public's money to support thin function, it would be divorced from the Chamber. How did that differ from the public perception that the city was setting up a government entity which would be funded 100% by the public and would be housed in the Chamber of commerce. it was a function which had been directed by the Chamber and half funded by the public, Council Member. Bites stated that if the EDC received $3-3.5 million k City of Denton city council Mlnui a September 911996 Page 13 a year, he doubted if they would want to be in the chamber building, Mayor Pro Tom Brook stated that the chamber felt that they would be there. n Member Cott stated that sales t tax much effort no or effort been ec the way how to get the a onomic development. council member Beasley felt that it was not possible to have three economic development operations, The previous city council decided to proceed with an economic development corporation which was now in place. The corporation had been formed arid had no funding, it was suppose to be funded with a sales tax election which had not yet been held, She felt that it should be separated from the Chamber and should be a city function. She had a problem with funding the EDC to the amount they were requesting when she was year. Until the e with the unsure of what e plware ans were asking for o the what would be money and what the sales tax passed or failed, they should be on a small budget and the city should not put a lot of money into it, Council Member Biles stated that the $197,000 was less than what was expanded last year to do the same thing. Mayor Pro Tom Brock asked where the money came from last year. Council Member riles replied from the city and the chamber, fore would severing Council with Member that was task favor March eandCouncil the Chamber that formed, Mayor Miller stated that the task force would be accountable to the City Council and not to the BDC. He felt that each Council Member would appoint two people to the task force plus the original 13 members. A chair would be selected from the task force. These would be appointments and not nominations, The charge for the task force would include evaluating 4A and 48, the amount of the sales tax and possible uses of the money, Council Member Young felt that the task force would be responsible for promoting the passage of the sales tax increase. Mayor Miller felt that there were two issues - economic development and funding. The EDC was a corporation set up by the City Council to carry out economic development, The job of the EDC was to promote the city and establish goals and objectives and criteria for what was necessary to succeed. At some level, still to be determined, that would be funded, The Council had directed the EDC 'a1 Cityy oP Denton City Council Minutes Septemher 9,1996 Page 14 to subcontraot the servi'ses with the Chamber of Commerce, The resolution indicated that this would and as of March 31st, it would be funded for the next year but the funding would be for the balance of the fiscal year, council Member Beasley asked if the charge for the task force would include deciding what amount of sales tax to ask for, what the money would be spent on and whether to form a 4A or 4B corporation, Mayor Miller replied correct. The task force would study the issue and would recommend what would be best for the community and then promote that issue, Council Member Bites was not sure that the task force should decide on whether to form a 4A or 4B because the Council had already formed a corporation on the premise of the recommendation that a 4A would be formed, Mayor Miller felt that the task force should have the option to study 4A or 48. Council Member Bites felt that the course had already boon set for 4A for economic development, Mayor Miller felt that the way to allow the task force to determine a recommendation which would most saleable to the citizens would be to give them more leeway, City Attorney Prouty staled that the City had formed a corporation under 4A of the Economic Development Act, It was set up before the sales tax election was held, A 4A and 4B could be hold in the same election, Mayor Pro Tam Brouk stated that the task force could possibly recommend a 4A and pruttisions for a 4B but could not have a 4B election in lieu of a 4A election, City Attorney Prouty stated that there was an economic development corporation formed under seotion 4A. If the task force recommended 4B it could recommend a sales tax election under 4B and then convert the 4A to 4B or dispense with the 4A and create a new 0 corporation after the sales tax election, C ouncil Member Biles felt that he could not go in that direction as the wouldCobeuncil had having which to make path a decision between 4A and 4B, Mayor Miller stated that he was concerned about the passage of the sales tax increase. He felt that opportunity to study the options of4At and 4B,~e By limiting the h City of Denton city council Minutes September 9,1996 Page 18 study to 4A, the probability of success of passing the tax would be limited, Betty MOKean, Executive Director for Economic Development and Municipal services, stated that 48's original intent was to be project specific. As the program had evolved, it could be an ongoing list in which the 4B sales tax revenue would not have to be retired, other projects could go on as there was an active board. A list of projects was needed but it could be an ongoing list, With 4A, strategic efforts would be listed on the ballot and with 4B specific projects would be listed. The 4B board could be overlapped w!,th what was in place currently, there could be two separate boe.1a or the Council could be the 4B corporation. Mayor Pro Tam Brook stated that Euless had passed a 4B corpotion with some projects which were economic development prcjeots,raThey also had an eighth of a cant which was allocated in general for economic development. Euless was able to sell the sales tax to its oitizens because one eight of a cent was for economic development and three eighths were for projects which the citizens could see would benefit the community. city Attorney Prouty stated that there was more flexibility under 413 than 4A. Under 4B, the projects were more likely to be tax exempt and the feeling when the EDO was formed, was to create projects which were taxable in order to increase the tax base. Under both types of corporations, economics development could be done and there were more specific municipal /public works type p rojects in 4B. One election could probably be held for both a 4A and with4a 4Alcorporationswastthatwthe board wdid One not want to for going na public hearing before each specific project was done, Council Member Young stated that the concept was started with a 4A project and he would continue to support a 4A corporation. Mayor Miller asked for the City Managerls comments on the Issue, City Manager Benavides wished that the EDC would allow the discussion on the 48. He was afraid that the EDC was looking all other options out and that the election would fail, I City Attorney Prouty stated that if the council went with a 4A and 4B there would be a need for two separate entities as the requirements for the boards were vary different. A corporation would prefer to have a 4B as the 413 would own the existing site as it then would be tax exempt. The 4B would then lease the site to the corporation, Mayor Miller asked if the Council was in agreement to have the staff prepare a work session discussion on the sales tax task force u 7 city of Denton city council MJ.nutes 80ptember 9,1996 Page 16 With the understanding that a resolution would be prepared to be considered on Septembez' 3rd to appoint the members, eta, The Council would then discuss the charge for the task force, Consensus of Council was to proceed with that discussion, Mayor Miller asked if Council was in agreement that as c.: March 31st, the City would no longer be suboontractin with the Chamber so that budget preparations could be made at this time. Council discussed the proposed budget of the EDC and the amount of funding which the City would provide. Dugose indicated that the City was already committed to $125,000 for funding, Mayor Miller asked how this would come back to council and how it would be communicated to the EDC and the Chamber, City Manager tenavides stated that the EDC would mast on August 21st and the Council oould consider this on August 27th, Consensus of the Counoil was to proceed with the proposal to discontinue services as of March 31st, With no further business, the meeting was adjourned, t JA K MILL R, MAYOR CITY OF DENTON, TEXAS JENNTF'ER WALTERs CITY SECRETARY CITY OF DENTON, TEXAS ACCO0329 CITY OF DENTON CITY COUNCIL MIMUTES AUGUST 13, 1996 The Council convened into a Closed Meeting on Tuesday, August 13, 1996 at St45 p.m, in the Civil Defense Room of City Hall. PRESENTS Mayor Millers Mayor Pro Tom Brook) Council Members Beasley, Biles, Krueger, and Young, ABSENTI Council Member Cott 1, The Council considered the following in Closed Meetings A, Legal Matters Under TEX. GOVT CODE Sea, 551.071 f 1. Considered and discussed settlement offer r aulting from mediation in GTE v City of Denton et_l, 2. Consulted with attorney on status of and litigation strategies in RPS/Web©r & Barnas v, City lawsuits, B. Real Estate Under TEX. GOVIT CODE Sea. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sea. 551,074 i Following the completion of the Closed Meeting, the council convened into a special called Session at the Center for the Visual Arts, corner, of Bell and Hickory. PRESENTi Mayor Millerp Mayor Pro Tom Brooks Council Memiuers Beasley, Biles, Krueger, and Young, ABSENT. Council Member Cott 10 Council cons~.derod a resolution of appreciation for Retiring Board and Commisc-•n members, h The following resolution was considered, RESOLUTION Of APPRECIATION FOR RETIRING BOARD AND COMMISSION MEMBERS i Krueger motioned, Biles seconded to approve the rEsolution. On roll vote, Beasley ltayerl, Brock "aye", Krueger "aye", Young Itaye", Biles "aye", and Mayor Miller "aye". Motion carried unanimously. 2. Council considered a resolution of appreciation for Retiring Mayor Bob Castleberry. The following resolution was oonsideredi RESOLUTION Of APPRECIATION FOR RETIRING MAYOR BOB CASTLEBERRY k~ v s. city of Denton city council Minutes August J.31 1996 Page 2 Young motioned, Biles seconded to approve the resolution, On roll vote, Beasley "aye", Brook "aye", Krueger "aye", Young "aye", Biles "aye", and Mayor Miller "ayes}, Motion carried unanimously, With no further business, the meeting was adjourned at 8130 p.m. ,TACK I LEWD MAYOR j CITY OF DENTON, TEXAS i r r ~7 ENNI VER-MALTERS CITY SECRETARY CITY OF DENTON, TEXAS i ACC00340 1 i I N A ~ Aponda Item~..!,~~ ~ ,Y. onto Date; October 13, 1996 CIT.)` O IN 1 REPORT PORMAT TO; Mayor and Members of tho City Council FROM: Ted Bonavidos, Clty Manger SUBJECT; Hold a Public Hearing on (lie Stoats of Cornmunky Development Programs RI1CDZ=DAT10 N/A 1 SUlb1MARY~ Community Development staff will provide a brief presentation on Ilio status of communi(y development programs and projects. After (Ito presentation, the public will be invited to make comments regarding community development activities. Bolow is an outline of the presentatlon topics; 1. Community Development Block Grant Program A. Capital Improvement Projects 1. Parks and playgrounds 2. Streets, sidewalks and drainage 3. Nonprofit facilltles B. Housing Programs 1. Housing Rehabilitation 2 Homebuyer Assistance 3. Demolition C. Human Services Activities i j D. Economic Development Activities { H, HOME Program A. Denton Affordable Housing Corporation B. Rental Subsidy Program C. Optional Reconstruellon D. Affordable Housing Program III. Hunan Services • locally supported IV. Availability of Performance Reports DAQKOROUND; Denton's community development program year ended on July 31, 1996. Staff Is currently compiling statistics and other information needed to complete annual performance reports required by 1he U,S. Department of Housing and Urban Development. HUD reguintions and Denton's hi n Parlicl,pallotr Plarr require (hat public liearlugs be lield at each stage of the commmtilty development process, This public hearing will allow cftizens and city councl) Pngc I I t StJ IUD .11 141 1 members the opporwrilty to continent on the status of community development activities, Staff will respond and provide Informatlon to oitluns basest on their comments and questions. PROGRAMS, DEPARTMENTS OR QHQQPS APPL+CTLD: Interested Citizens Program Beneficiaries Neighborhood Organizatlons Lenders Realtors Contractors Service Agencies Parks and Recreation Department Engineering & Transportation Department Community Development FISCAL IMPACT: ~ NIA j Respectfully submitted I 'red 8enavides City Manager Prepared by: i i Barbara Ross Comnunhy Development Administrator , j Approved: l I Prank Robb ns, AiCP J Executive Director for P anning & Development Attachments: Balance sheers for 1994 & 1995 CDBG and HOME programs (4 sheets) Community Development Status Narrative Page 2 s 7• COMMUNITY DEVELOPMENT PROGRAM STATUS Each year, the City of Donton is required to comploto a performance report for both the Community Dovelopntent Blook Grant and the HOME Investment Partnership Programs, The reports detall expenditures and accomplishments for the City's program year, August I through July 31, During the program year Prom August 1995 to July 1996, a total of'$1,999,412 In flttnding nom the US. Department of Housing and Urban Devolopmew was spent, This amount Includes expenditures under both the CDBO and II0MI3 programs, A comprehenslvo discussion of expenditures and accomplishntonts will be included in the Oranteo Performance Report (CDBCJ) and the Annual Performance Report (HOME), Copies of the completed reports will bu avallable on or before October 28, 1996, Some of the major accomplishments during (lie 1995 program year include the following; Complotion of 14 rehabilitation projects, This is a 250 % increase over the number of nabs co mplr ,ted last year, Provision of assistance to 45 home buyers In the purchase of their flrst hone, This Is it 400 % Increase over the number of families assisted last year. Completion of 2 reconstruction projects, Two homes were construoted under iho new Affordable Housing Program. Thoy wore sold to eligible famllles Purchase and ronovatlon of two HUD homes under the Denton Affordable 1-loushng Corporation's Affordable I-lomeownorship Opportunity Program, l Assistance to 8 human service agencies providing a variety of needed services, ? Rental assistance to rive elderly tenants at Fairhaven Retirement Center, Assistance to various City-sponsored human service activities Including the MLK After School Action Site Program mud two summer playground programs, • Completion of the following capital improvement projects Boardwalk, Park Lane, Chambers Repave Cook and Ruth Street Repave Morse Street Sidewalks Phase II Neighborhood Playground Improvements - Denia, Owsley, Mack SPAN Vehicle Purchase (partial funding for purchase) Falrhaven Renovation Phase I Capital Improvement projects now in progress include the American Legion Renovation, Bell Avenue Sidewalks (completed during '96-'97 program year), the City County Day Nursery Drainage project, the Evers Park Resiroon>/Concession Facility, and Cite second phase of the Fairhaven Renovation. " 'Fite demolition program has cleared 14 properties removing vacant substandard structures in the City. Nip 3 r COMMUNITY DEVELOPMENT BLOCK ORATE, FUNDS 1994.95 GRANT BUDGET EXPSNDXTURSS l PgSZG /.CTZVTTX A QUt3S AS QF 7/31/94 _ .ANNCE I ~rn {~~{r~~r~rliL~rrri . . -~~~~rgir•~~l~rir~~e!fi'~!!'t!'d____.. CD ADMINISTRATION 1 224_,075 2221978 _ 1l 597 - _HOUSINd REHABILITATION -_.PROGRAM 58!563 58,563- HOMEBUYERS ASSISTANCE PROGRAM 88,785 77,659 11,126 MLK AFTER SCHOOL ACTION SITE 191000 9,433 91567 AIDS SERVICES OE DENTON, INC. 7,500 7,500 0 NORTH TX COMMUNITY CLINICS 350000 35,000 0 KING'S KIDS SUMMER PROGRAM 17,670 14,'03 2,967 - - - DEMOLITION PROGRAM 66,217 39,799 26,418 OWSLEY SUMMER PROGRAM 11,750 8,214 3,536 TJNITED WAY - OWSLEY PROdRAM9 16100.0 5,807 101193 HOPE, INC. 18,000 18,000 0 TWUCARPS HEALTH CLINIC 2_0_1_000 16,727 3,273 ASAS SCHOLARSHIP PROGRAM 81000 5,651 2,349 SPAN VEHICLE 14,140 13,180 960 STREET REPAVING PROJECT* ?.3,_583 22,435 1,148 MLK PARK IMPROVEMENTS 2,731 2,730 1 AMERICAN LEGION HALL RENOVATIONS 135,000 10,026 124,974 DENIA PARK IMPROVEMENTS 370050 ---31.00.0. FRED MOORE DAY CARE RENOVATIONS 200,000 200,000 0 FAIRHAVEN RETIREMENT HOME REHAB. 14,957 141957 0 AUA PROJECT 7,897 7,897 0 OWSLEY CENTER LAND ACQUISITION 26,000 25,294 706 CHAMBERS ST. DRAINAGE 110,629 106,275 4,354 CITY CO. DAY NURSERY DRAINAGE PROD, 22,297 17,850 4,447 MK&T DRAINAGE PROJECT 18 773 18, 772 1 I_TOTAL _1994_ _CD13Q GRANT 996_, 001 . 21.0-,_616_- * Repaved Streets; Boardwalk, Simmons, Parklane and Chambers Page 4 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS 1995.96 GRANT - - - NROG/ACTxV7 ~X- BUDORT - - ~~1 FN7 CD-ADMINISTRATION`- 299,000 1950375 53,625 HOUSING REHABILITATION PROGRAM 253,011 1801505 _ 72,506-. _HOMEBUYERS ASSISTANCE -PROGRAM 1251000 100 129,900 ALTERNATIVE AVENUES PROGRAM 51000 11992 3,008 AIDS SERVICES OF DENTON7, 500 3, 990 3, 510 - - - - MORTH TX COMMUNITY CLINICS 31,000 231250 7,7s0 KING'S KIDS SUMMER PROGRAM 15,750 0 15s_750 DEMOLITION PROGRAM 65,000 179 64,821 - - _ _OWSLEY SUMMER PROGRAM 11,750 0 11,750 EVERS PARK RESTROOM/CONCESSION 1000_189 81 100,108 DENTON COMMUNITY DEVELOPMENT CORP, 60f 500 0 _60500 COMMUNITY SIDEWALKS. 481000 0 48,000 - COOK & RUTH ST, REPAVING 191900 181-150_ 1,750_ CRAWFORD ST, REPAIRS 42,000 436 41,564 - - ----------SPECIAL OLYMPICS 1000_ 14 999 1 - - - - - - _CITY CO. DAY NURSERY KITCHEN - 301000 0 30,000 FAIRHAVEN RETIREMENT HOME RENOV, 12,000 4,274 71724 FRED MOORE-DAY CARE RENOV, 75,000 72,259 2,741 MLK_LIGHTING 1, 023 PHOENIX -PARK. IMPROVEMENTS 35,000 0 35,000 HOPE, INC, 25,000 15,625 9,375 MHMR_RESPITE -SERVICES-- - v - - 151000 50 _ 14,950 SPAN-FAIRHAVEN HOMEMAKER SERVICES 10,000 3,837 6,163 - - TWU CARES HEA CLINIC 20, 000 829 19, 17d TOTAL 1995 CDBG GRANT ?.1.273,_600 5361.951 . _736, 699_ page 6 7 HOME 12ARTNERSH2P INVESTMENT ORANT PUNDO 1994.95 GRANT auDaEr ~ ExrENDxTVR~e _ PAMIMACT"FTY AS-OF 7/31/ 6 _ BALI TC CD HOME ADMINIfiI'RATION 5OL000 37,001 121-999. HOMEOWNER REHABILITATION_PROORAM 195 290_ 195 289 HOMEBUYCRS ASSI8TANCE PROGRAM - 69,298 - _--69,289- - 9 _FAIRHAM RENTAL SUBSIDIES x.94 265 80 5U0 113,765 I.DENTON AF'F'ORDABLE ROUSING CORP, 75 000 75 00 TOTAL l"4_F10-! E GRANT U~JbS 58_,.BG3 457 079 1 126 774_ r Pegs 6 ti`s p. HO" PARTNCRSHXP XNV48TMSNT oRANT VUNDS 1998.96 GRANT BUACiRT EXPENDXTURmB PLO ~~tlTIy7TY _J 1___J1M0 _JA OP 7-1~~41__ ~+A~ - CD HOME ADMTNISTRATTON 411000 _ 572 40142 g - - - - - HOMEOWNERS REHABILITATION PROORAM 79 720 985 79,265 OPTIONAL RECONSTRUCTION PROGRAM 204 00 _1971655 FA RHAVEN RENTAL SUBSIDIES 121280 31909 8,376 DENTON AFFORDA LE HOUSI G CO P, 75 000 75 000 p TOTAL_195_HOME_ dRX~NT FUNDS 412, 500 _ Q6-1776 325 7N ,j I Page 7 AUundn No.,„,~,.~ DATE; October 16, 1996 Agonda Itorn CITY COUNCIL, REPORT FORMAT TO: Mayor and Members of the City Counoll FROM: Ted Benavldes, City Manager SUBJECT; Hold a public hearing and consider an ordinance to rezone 1.0362 acres from the Multl Famlly 1 (MF'•1) zoning district to the Planned Development zoning dlstrlot on property located on the south side of Pralrle Street, approximately 350 west of Avenue E wlth approval of the detalled plan for a private dormltory, RECOMMENDATLQN1, The Planning and Zoning Commission recommended approval of the rezoning request (6.0) at Its meeting on September 25, 1996. SUMMARY; See Planning and Zoning Commission Report BACKQROU D: See Planning and Zoning Commission Report, PROQRAMS, DEPARTMENTS OR QROUPS AFFECTED: Not applicable, EISCAL IMPACT: None, Respectfully submitted, Ted t3enavldes Prepared by City Manager Doi na K, Bate an Senior Planning Teohnlcian Approved by, c / ran F,, bbl s, AICP Director Planning and Development Attachment #1; Planning and Zoning Commission Report. Attachment #2; Draft P&Z Minutes from September 25, 1996, Attachment #3; Ordlnanco. ATTACHMIMT 1 PLANNING AND ZONING COMMISSION REPORT CASE #Z-96-034 Ootober 161 199e GENERAL INFORMATIO- Applloant; Tom Hanahan 8239 La Cosa Drive Dallas, Texas 76248 Owner; Mlral Corporation 2681 Clear Springs Court Richardson, Texas 75082 Action Requested; Rezoning from the Multi Famllyi (MF•1) zoning dlstrlot to the Planned Development (PD) zoning district with approval of the detalled plan for a private dormitory. Location and Slzw The subject property conslsts of a 1.0362 acre tract located on the southslde of Prairie Street, approximately 360 feet west of Avenue E Surrounding Land Use and Zoning: North; Apartment Complex/Single Family; MF•1 & General Retail South; University of North Texas; MF•1 ; East; Retell Sales; General Retail West: Apartment Complex; MF•1 Denton Development Plan (DDP); Moderate Intensity Area #117 (60% allocated) SPECIAL INFORMATIONL Publio Improvements assoolated with the plat will Include constructlon of approximately 300 feet of sidewalks, Installation of one fire hydrant, and right of way dedlcatlon on Pralrle Street. Various easement dedications will also be included. SACKGRO D: The subloot property Is In the Multi-F'amlly 1 (NIF•1) zoning district and has been since the adoption of the 1969 zoning map, NOTICE: Eighteen (18) property owners were notified of the request on prior to the Planning and Zoning Commission meeting, As of September 30, 1998, one reply form has been returned in favor and none have been returned In opposition. i 't! Case #2.86.034 Page 2 ANAL= This request Is for a seventy eight (78) unit private dormitory, An analysis of the Denton Development Plan, as it relates to this projeot, is as follows; Denton Development Plan Polloy Analysis Summary Moderate Intensity Area POLICY COMMENTS Development Rating vs, Polloy 9100damty Somewhat Conalatam y Inconelsloni Inconsistent To be eonsht•m with the plan, a 3 2871dpe80d on Inloneky allocation n development should not exceed is Intensity based on exlsllno tontng x NlooMed lmonaRy, 207,24 trips Intensity based on proposed use a 924 a Inca the projacl to !n°onslelon! with the all,,iated Imensky, tha following Memo o Nofudhor infrastructure is required, should be conaldorodi • The property Is undeveloped with no s Adoqutlo Imraotruutwa unusual topog(aphy, • Unusual Topography, o )'he proposed use is oompatlbto whh a. Unaccounted smrounding properties, x b. Unusable o The subject property is adjacent to a • Compatibility multi family unH, • Sepwai1on DNerokyl Lend use diversity shall be defined ae uses other than the dominam Thls pdvato dounkory allows for Ilvwng land uses in the wee such as faollNles for studenls of the UnNeroky { commarotal, retell, llgH Indu°lrlal and while enroll od, x offtoe DNaeky Bonus: An Imansky bonus for mixed use developmems that include NIA public or nm-plok communky type facilities or uses, Commoroiatlrolafl limited to 110 of the Not applicable, rite proposal does not lolot acreage of the comer, fnefud° °ommarotal/retWl use. Hlgt, Density Houeing • Traneklon between land uses, Adjaconl properties are opadmonl•lrelall, o Access to morlel sireei°, Easy access to aderlele exists, x o Concomralton of 750 unko, 9,287 unto In the Inloneky area, x • 112 mile separation. There are apartmenla to the oaol. x • She design. Detalied Plan Is under conolderolion. x x Case #Z•96-034 Page 3 INFORMATION REQUIRED ON DETAILED PLAN, INFORMATION m COMMENT NT Acroage • the aoraage in the plan as shown by a survey, cedHled by a registered The prePminary plel was surveyed by a regfalered engineer and englneor, was approved by the Planning and Toning Commission on soot-in" or 26, Joe. Land us" • parmltted usoo, spocill d in dclail as determined by proposed land use le for a prlvele multi family dormitory, the departmem, and the acreage for each use, OH•s8e Information - Adjacent or surrounding land uses, zoning. Provided on plan, stroela, drainage (aollktes and other existing or proposed oH•ahe tmprovomardd, as specified by the dspadmgN, oultiotent to dernmelrate W ralatlonship and oompatli of the district to Surrounding properties, uses and facllfllss, 'traffic and IfamPOrtatfon . The location and size of all streets, Provided on plan, AddHlonel parking will be provlded by the allays, parking fate and parking spaces, loading amps or other UnlvorsHy of North Texas, areas to be used lot vahloulaf Irafflo; the proposed auoess and connsatlon to exleling or proposed olreato adjacent to the district; and the IraHlo generated by the proposed used, Sulldings - The location, maximum height, and minimum aetbacks Provldod on plan for al buildings, and M nonresidential, the maxtmum total Poor eras. Hosklontlal development , The number, location, and dimensions Provldod on plan. d lots, the minlmum setbacks, the number of dwolling untie, and the number of unite par acre donaHy. Walor and drainage - The location of all creeks, ponds, lakes, Provided on plan, +,rodplalno or dMr water retention or major dralnags faclifiloe rind fmprovomsme, UtllHios • The location and route of all major sewer, water, or Provided on plan, electrical lines and fookllles necessary to serve the dlohml Trees and landscaping . The location Of all protected bass and a Provided on the landscape plan. landscaps plan as required by the ohy's landscape ordinance, Open Space • The approkinnale location and aka of groonbalt, No open space has boon proposed, open, common, Or recreatlon areas, the proposed use of ouch areas, and whether they are to be used for public or prtvate use, Safeening - The IOOatlOn, typo, and size of all fences, barme, or A six fool fence to proposed along with preservation of I,,$ Ioreoning features proposed between difforont land uses or existing leas, adjacent properties, signs • Location, type, and size of all signs regulated by the No sfgno are proposed, ody's sign ordinance. Sidewalks and bike paths, sfdowalke or olhoi Improved ways for A four fool wide sidewalk is proposed along Prelrte street as pedestrian or bloycle use, shown on the plan. RECOMMENDATION, The planning and zoning Commisslon recommends approval of this request. _ r x Casa #Z-96.434 Page 4 ALTER TIVE&: 1 Deny the request 2. Approve the request as submitted 3. Approve the request with other conditions, 4. Postpone conslderatlon, ATTACH M ENT; i 1. Loostlon Map 2, Detailed Plan R ' i I i i I IIIP ~m.^.T.+^'......7._n.~n+w ^'..~I}.wr.,n' "rt rn...~~...:. imr...r.IT~I~I.IT~1~1~^.+n.w. ~..,Pw.w~.rw~+w~.mr.'w,+rn rrw..R^..~n.'~ns.~r..'^"^m_Tn•~.F~/~.' .^.RR:mm~~wwnn.ww~.n+.na++a,+r..wn,~+nr..r+.mr ~..v.~....t........ „n..~.m.. r.__ _ I 1 ~wwr`"'M'w ww~rwr~rrw III mow 1 1 ~erwrrw~►rwrriwrw►, Ilu ~riIITA HI•~~'•kL~ _ W I Awl I n d! !i+ ~I.t3:.OPi:S:.`~Y.~CK.T.3:~ .fir'r ✓ ..rr ~F,,4AJ .r' ...7sI,.•6".. .wr.d':. r...;..rnh,~., f ~C~ Ip. ».......,,,..~•rM~;crc~«:rw...r,:.a.~~_ ..:.t....t....~-~ .fra.. »~sia .~~r.r:>p~.ca;~': i`, \ •Irvr'• .I. 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'Ir4YA1'tTOOPI A I Noa 1 1 P, INI~ ta~~ l-"Wr- AK FLe lV•I ~'1rJ~A rJJhJG~~~F 1 k i ~swim& 4 u~p tAw,lIwl" a>a, Il AW I4~jl!~A.4k ~1UH1('C 4 rr~ 1 MIS 4M~~ i 1:7 - r~ .-r- "Ty i I I oil Sim 41 ~r L4~JJyy'yy.'' rI '~11 1 1'" 1/ / Y `1 [ I 1 1 1 1 j 1 r, T ~STR"T YARD ( I 1~ 1 tl i "Will REWMIANOSOWIWIM fwl UIKA, ! v-. 111IMT YARD TREOS E I r Tl_ .Y.oIIt•.ni.Lr hM4t vnrn MY'r rl^vr.l ~ •l 111, 41-7 v. em,n I a n. . 1 ~'Y.Iq '.,RO't~ 11. '."v': K t:: en.11 (+Mivkro~u~ 11 1' Mac ~.~~ucrn ~a Mtr~' ~ Mrbnrrs•r..1,n^.eLw a~inr~:n t.mowa~n,.•r. ~.,rv~,~ rv~ r,. ^'~1Mnrv wl-viMn , r ,h JF "J~ k, r L~ I Ti I i W a. . t i I F i 1~ - I Vl• Ci w i ATTACHMENT I M/I M11 MN - _ z - - - a w -96-0341 0 911 9a1l~11~911 19!11 ~ ` 917 1021 9117 112 ® 20,0 Lw - 111 ~ - - boa-- 04 ® lomm 102e Satt 01 117. 4101 , _ 1a2, r a2oo - - ` 1491 102, ,021 2 4410 - - _ 2129 - PRAIRiE1 1 AJ ,021 Jul 1921 1141 1 - 1021 2 10 C 1001 000 s w u7 _ n > d r il. ' ATTACHMOT' 2 t 3 ~ l i \ r 71 f 3 ~ I. i 1 ~ f I '~h }~I~` 111\ ~It \ PP Al q 1 Y , f : p rrff i 'K ~ I~ ~ 1 i t k C's ~ ; 1 )t , s: T ATTACHMENT ' 2 September 25, 1996 Page 2 P&Z Minutes DRAFT Mr, Cochran; I move approval of the consent agenda Mr, Jones; Second, Ms, Sohertz; Any discussion? All In favor please raise your right hand, Opposed same sign, Approved, (6-0) M, Mold a publio hearing and consider the final replat of Lot 2, Btoek I, of good Samaritan Village, The subject property is located In Planned Development 21 (PD 21), consists of 14,597 acres, and Is located on the southeast corner of Hinkle Drlvo and Headlee Lane, Ms, Sohertz read the rules of procedure for the public hearing and opened the public hearing, Mr, Reeves: This Is a final replat of Lot 2, Block I of the Oood Samaritan Village; As you will recall It was on the agenda for our last meeting and because some Items had not been taken care of it was pushed back to this meeting, Everything is now In order and DRC recommends approval Ms, Schertz; Would the petitioner care to speak? Is there anyone to speak in favor of the petition? Is there anyone to speak In opposition to the petition? We will close the public hearing, Are there any final remarks? Mr, Jones; I move we approve the final replat of Lot 2, Block I of the Good Samaritan Village, Mr, Cochran, Second, I i Ms Sohertz Any discussion? All In favor please raise your right hand. Opposed same sign, Approved (6-0) i W. Santa Fe Square Addition. a, Hold a public hearing and consider a request to rezone 1,0362 acre tract from the Muld- Family-1 (MP-1) zoning district to the Planned Development (PD) zoning district and approval of the detailed plan for a private dormitory, The property Is located on the south side of Prairie Street, approximately three hundred fifty (350) feet west of Avenue E. (2,96.034) Ms, Sohertz opened the public hearing, Ms, Bateman; This tract Is a little over an acre. It Is currently divided Into six lots and will be replatted Into one lot, The request to rezone Is for a planned development for a private dormitory, The reason for requesting PD zoning Instead of a straight zoning Is based on the density. The planned development Is for a seventy-eight unit dormitory, The property Is in a moderate intensity area and Is fifty percent allocated, The property has been zoned 1't i 't) i 1 P&Z?Olnutes September 25, 1956 Se TORAFT Page 3 multi-fam{!y since 1969. We notified eighteen property owners and we have received one reply form In favor and none In opposition 1 have received a couple of phone calls about this case. In reviewing the Denton Development Plan we find that this proposal Is consistent with the plan policies. Mr, Powell; How many parking spaces per unit will there be? Ms, Ilatoman; The are going to be approximately forty-four parking spaces on their property, The University of North Texas is going to provide a declaration of off street parking to allow for parking on their property which backs up to this site, Mr, Powell; How many parking spaces per unit will there be once that Is done? Ms, Bateman, The applicant can answer that for you, Ms, 5chertz; Would the petitioner care to speak? Mr, Tom Hanaham My name Is Tom Hanahan and I am the architect for the project, I am here representing Mr. Miyama, who is the owner of the project, Also with me Is Mr, & Mrs, Yamaguchi, the owner's representatives who have a permanent residence in Dallas, Mr, Fuller from the University of North Texas Is also here. The project is a private dormitory project, Mr, Mlyamn has had a dream for many years to develop student housing in the United States, This will be his first project and a prototypical project, Hopefully additional units will be built here at the University of North Texas as their need Is further Identified Mr, Miyama has committed to work with them and build addttlonal units If property sites are found and the need Is there This will be housing for International students, both from abroad and studying here, and domestic students that have gone abroad to study and have come back and want to stay In the international environment, The Intention Is that Mr, Miyama would build this and manage It himself, We are working out agreements with the University for parking, the placement of students and things like that, This project will be for students only, It Is adjacent to the campus, The building will be a three story wood frame structure, It Is a high end, very high design kind of project, not your typical dormitory, All of the floors will be hard wood floor with stone In the hallways, Mr, Mlyama has found a way to build some very nice structures economically, We can offer these back to the students at a slightly higher cost than the regular dormitory fees would be, We have boon cooperating with the University and we arr. working very hard not to become a competitor of theirs, but to make sure that their dormitories stay full and therefore the overflow students would come Into the dormitories that we plan to build, There Is parking on site We have forty-four parking spaces on site and thirty-four spaces off site, which gives us seventyelght spaces. This is one space per unit and that it about what the parking ratio is for international students and students on campus, There has been a letter submitted by the University covering their agreement to provide those spaces either by permit or whatever vehicle the Commission would require, With a parking permit the students could park in the existing spaces which adjoin the Immediately t property o the south, There will be seventy-eight units and they will be small units with double occupancy It Is right at three hundred and elghtyfour square feet per unit, 11 is really more the density F P&Z Minutes DRAY Sept eptember 25, 1996 !l Page 4 of a hotel/inotel basc4 on the square foolago Site coverage is not nearly as great as the density would tend to Imply because the units are small, Our site coverage Is well within the allowable zoning constraints for multhfamlly, We do not exceed forty percent site coverage and we can conform to most of the multi-famlly requirements, In working with the Development Review Committee they advised us that a planned development is the better way to approach this, our Intention Is to start construction In November and to have it open for students next September, Mr, Cochran, I see that North Texas Is going to contract with you for the additional parking spaces, They mention that It will require parking permits, What concerns me Is that forty- four spaces are an the property, how Is parking going to be determined? Mr, Hanahan: We haven't worked that out in detail yet, it would have to be an equitable situation, obviously, so that everyone would have the same parking expense, We have been advised by staff that the agreement that we establish with the University will be tied to the certificate of occupancy, As long as this building Is used as a dormitory then that agreement will be In place, Mr, Cochran; Will these units have kitchens? Mr Hanahan, Yes they will have small kitchenettes. There will not be a dining hall attached, There Is a dlning hall a few hundred feet away at another dorm, Ms, Schortzt Do you know when the last time dormitories wore built? Also how did Mr Mlyama decide on Denton and the University'? I am very exclied about this. I looked at the plans and I think this will be a wonderful addition and I encourage there to be more, Mr, Hanaham Twenty years ago, Mr, Mlyama as a young man went across the United States on a bicycle. He fell In love with the people here and the United States His family has owned the same property In Japan for eighteen generations and he wanted to come and do some work In the United States, He was Impressed with Iho assistance that the United States gave the Japanese aftoe the war and he wanted to return that favor, When he came he happened to come to Texas and he now owns two multi-family projects in Texas, Some people brought him to this area and showed him the University, the land costs here make the project workable, there Is a need, and so he selected this area. He also buys bronze sculptures to put on each project so that It will have a signature piece Mr, Mlyama has started a corporation that will do these and It is called Miraya Corporation, which means future, Flo Is thinking very long term, Mr, Powell; Who owns the land? Mr, Hanahan, Mr, Mlyama does, He has already closed on the land. Ms, Schertz; Is there anyone to speak In favor of the petition? Is there anyone to speak in oppositlon? "A1Vrl~ i i. . i P&z Minutes , (~l v Scrptomber 25, 1996 l'~II Page 5 Mr. Bill Graham: My name Is Bill Graham and I own the Toxas Pickup Cafo, It Is at 2101 WPrairl o, I am not In opposition aftor we work out some things, I also represent Joe Schushler who It the gentleman that owns the property directly across from this project on the north side of Prairie, It boils down to one word for us and that Is parking, I heard that these are going to be double occupancy and you are assuming only half will have cars? I also heard moderate intensity and fifty percent allocated, what is that? Mr. Robbins: In our Denton Development Plan, which is the city's master plan, there Is a concept map that shows different intensity areas and for each one of those intensity areas, there are three, there are a set of policies assoclatM with It, This Is in the moderate Intensity area and our staff report evaluates this proposal based on the policies concerning moderate Intensity areas, This is a large moderate area. There are only three types of Intensity areas, Mr. Graham: There Is a particular problem that I am not sure the applicant Is aware of. The University of North Texas physical plant Is right across the street, Joe Schushler and I went out today and counted oars that were parked on this property, there were fourteen cars parked on the grass, nine parked In the street and eighteen cars In the parking lot at 2111 W. Prairie. Where are these cars going to park when this project Is built? We are looking at forty cars, These are cars that belong to people that work for the physical plant, 1 realize that this Is riot "applloant's problem. T am not opposed to the project, we just need some help with the parking 1 am not sure where those people are supposed to park. It Is my understanding that the University charges Its employees to park on campus, so to avoid that charge they are parking on this lot. Mr, Powell, You are saying that the University charges Its employees to park In the physical plant parking lot? Me, Fuller: That Is correct. Me, Graham: If we could make those people park where they should be parking In the first place then we wouldn't have a problem I have a very good business and I feed a lot of people at lunch, I even lease parking spaces from the University because T want to guarantee that when the business people come to eat they can get in and out fast, Ms. Schertz: Is there anyone else to speak In opposition? The petitioner now has five minutes to speak in rebuttal, Me, Chuck Fuller My name Is Chuck Fuller and I work for the University of North Texas as the Director of Business Services, Our function is to run the enterprise parts of the University. We are extremely pleased to see this project We have not been able to sen'v this particular target population with any real expediency for several years, The International students am not real comfortable In a residence hall setting, either from a dietary or a community standpoint. For many years we have wanted to have a facility to serve them and the Internationally oriented domestic students, This suits our purposes very well and It Is a very high quality facility, To the west of this property Is some under utillzed parking and that is where these people wlll park, We will probably ask that they be permitted to use that. v r'P&z Minutes September 25, 1996 JR A I Page 6 If necessarywo will go In and designate parking but at this time It is not necessary, For the employees that park In the dirt lot, It Is an economic thing, They can park there and walk across the street to gat to work and it doesn't cost them anything, The state does not fund our parking so we have to fund It with parking fees, What will happen is that some of the those employees will buy permits and park in the physical plant parking area when Choy can no longer park on that lot, Some of them may move a little farther down the street. We can not make our employees buy a permit and park on our premises. Me, Moreno; Is there adequate parking west of this site? Me, Fuller; Yes there are about two hundred and ten spaces in that lot They can buy the general commuting permit for thirty-five: dollars, The only parking concern that we have Is what Is going to happen during football games and events like that Everybody In that neighborhood is going to be Impacted. Me, Moreno; This private dormitory is catering to international students, do you know how many of them have a car? Mr, Pullon Our data Indicates that the true International student coming from a foreign country and taking courses, probably about thirty-flue percent of them actually have automobiles when they are here, Very lbw have automobiles relative to the American student Now we are also talking about putting some Internationally oriented American students In there so that ratio Is going to go up to about fifty percent, I think what they have targeted at fifty percent is quite accurate, plus or minus ten percent We have a large international population and not many of them have automobiles. It Is just not economically In their best Interests. They can't have jobs here except working for the University, Mr Moreno, How is the double occupancy going to be enforced? How are you going to keep more than two people from living in a unit? i Mr, Fidler; Just as we do with the residence hails we assign people to rooms. We do have some Issues occasionally where they have a friend come In, It is the resident manager who maintains control of that. Any resident has a right to have a visitor for two days and after that It becomes a management Issue. We are proposing that we have a resident director and a student life assistant director In that facility, Me, Coohratu Will the assignments be handled through the University or will they be advertised as tiny other apartment would? Mr, Fuller; What we are proposing right now is that we will assist the Miyama Interest in assigning the students, We have some Information and systems available to us that would be helpful In this respect. We will do that as a contract service for them, Me, Cochran; Will those thirty-four spaces be marked off specifically for this t'acllity? Me, Puller: Inklally what we are proposing Is that the thirty-four will be part and parcel of j i P&G Minutes ti il C- September 25, 1996~~~ Page 7 what is out'there, At this point in time the parking lot Is heavily under utilized. Mr, Hanahan; If every resident that has a car In the facility has a parking permit then the ratio will automatically adjust If the parking is done on a reserved space basis then we would have to work out additional parking. Mr. Powell, I would like to make note that I don't think that one space per double occupancy unit Is realistic, Imernatlonat students or otherwise, This wHl not affect the way that I vote, Mr, HAnahant If the vehicle wo use is the general parking permit for all residents then anybody that lives hero will have a parking space. Mr. Jones; So anybody that has a general parking permit can park there? Mr, Hanahan, Correct, What Mr, Puller Is saying Is that what Is there now is under utilized and there are vacaroles there now on a regular basis, We are still trying to refine the parking agreement, trying to find the most effective way to make sure that our students don't become a parking problem for the neighborhood and conform to the University requirements, Mr, Jones, I atn for this thing except that I am concerned about the parking, Once this project Is under way there will be fourteen people who will be moved to the street and I think the University needs to find a way to deal with this, I &1't think the students are the problem. Ms. Schertz The public hearing Is closed? Are there ar.y final remarks? Ms, Bateman: In the zoning ordinance the required parking for a dormitory is one space per unit. Before you tonight Is the zoning change and the preliminary plat, I plan to have the parking addressed when the final plat comes to you, Staff recommends approval. Mr, Robbins, One of the Interesting aspects, the parking declaration that our zoning o- rdinance requires basically says that the declaration that Is recorded at the County Deed Records o specific area of parking Is designated for this tract, It is a defined area. The certificate of occupancy could be revoked If the parking was not made exclusively available and there was a problem. Mr, Moreno; Is there another facility here In town that approximates this private dormitory? Mr, Cochran; University House and College Inn are simllar but I don't know what the parking Is. Mr. Jones: As you work with this in the final plat process I think the key to this thing Is how the University is going to handle their employees. i l1 ~ I II •t h'~t Il P&Z Minutes Ii hp f September 25, 1996' Page 8 Ms Bateman; When the final plat comes before you It will be a replat and we wlll have a publlo hearing, Mr Robbins; How this relates to the zoning Is that these folks can't do anything about the University's employees, We know that they are going to have to find somewhere else to park, Mr. Jones; I am saying that I am not going to look on this project at the final plat favorably If that problem Is not solved and I don't care how they solve It, Mr, Robbins; When you got the final plat only the standards of the Subdivision and Land Development Regulations will apply which do not Inolude parking. Mr. Jones; So are you saying that I need to vote against It tonight If I don't like what I have heard so far? Mr. Drake; You don't have the discretion to consider things which are not part of the Subdivision Regulations In considering whether a plat should be approved, Mr. Robbins; You can't condition this zoning case or the plat on somebody else's performance associated with parking for their place, The University needs to do something to got their employees to park on their property, the staff doesn't think that this a related issue for this easel Mr, Jones; What you are saying is that Instead of allowing for thirty-four spaces we need to allow for seventy-four spaces to Include these forty cars that are parking there now, Mr, Robbins; What you would have done in that case was to have a condition that required additional parking for the physical plant employees and that is not what we are looking at. We are only dealing with the required parking for this private dormitory, We can't make the University come up with more parking for their employees because we can't regulate them, Mr, Powell My understanding is that there Is plenty of room for the employees to park on the premises, it is a question of spending forty-seven dollars to buy a parking permit for the year, Mr Hanahan, That parking problem is Independent of our project, but once our project is up then It will become our problem and we will work with the University to solve It, The University has expressed a willingness to solve that problem and we are certainly going to make sure that It is solved by the time our project Is ready for occupancy Ms, Schortz; I think from all of the comments we have heard tonight, I Appreciate Mr. Graham taking time to come out and make us aware of these facts. I think we are all in agreement that this Is a wonderful project and we would like to see more of them, I think we also accomplished that we are sensitive about the parking, P&z Minutes September 250 1996 Page9 Mr- Powell: j Atything that Ilhaam prou that ve saidtonightlthat swasneg tive project nnot dmthis eant tollbe add to the tax negative about base, project. Mr, Cochran; I move we recommend approval for the change In zoning from Muitl-Pamily- 1 to Planned Development and detailed plan for 7.-96.034, Mr, Powell; Second, Ms, Schertz: Any discussion? All In favor please raise your right hand. Opposed same sign, Approved. (6.0) b. Hold a public hearing, and consider the preliminary repiat of Lots 5 thru 10, Block 15, of the Owsiey Park Addlllon Into Lot I, Block 1, of the Santa Pe Square Addition, The property Is located on the south sh:e of Prairie Street, approximately three hundred fifty (350) feet west of Avenue R. Ms, Schertz opened the publlc hearing, Ms, Bateman; This Is taking six lots and platting them Into one lot, Public Improvements associated with this plat include 300 feet of sidewalk along Prairie, Installallon of one fire hydrant, and right-or-way dedleaflon on Prairie Slr?et. The plat does conform to the minimum requlrements of the SuWlvlslon and Land Use Regulations, i Mr. Cochran; Are the trees that are on the plat existing trees? I Ms. Bateman, Yes they are existing trees. Ms, Schertz; Would the petitioner care to speak? Is there anyone to speak in favor of the petition? Is there anyone to speak In opposition? We will close the public hearing, Any final remarks? Ms, Bateman. Staff recommends approval Mr, Morenot I move we approve the preilminary replai of Lot I, Block 1 of the Santa Fe Square Addition Ms. danzert Second, Ms, Schertz; Any discusslon? All In Favor please raise your rlght hand, Opposed same sign, Approved, (6.0) V. Consider the proposed partial easement abandonment of Bell Place Addition, Lot 2R, Block A. F: Z-90-034 ATTACIIMENT 3 ORDINANCE NO, AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM THE MULTI-FAMILY 1 (MF-1) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO THE PLANNED DEVELOPMENT (PD) ZONING t)IS't'RICT CLASSIFICATION AND USE DESIGNATION FOR A 1,0362 ACRE TRACT LOOAT- ED ON THE SOUTH SIDE OF PRAIRIE STREET, THREE HUNDRED FIFTY (360) FEET FAST OF AVENUE E; APPROVING A DETAILED PLAN FOR THE DISTRICT; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Mr. Tom Hanahan, on behalf of Mirai Corporation, initiated a change In zoning for a 1,0362 acre tract of land from the Multl-Famlly 1 (MF-1) zoning dlstriot classification and use designation to the Planned Development (PD) zoning district classification and use designation; and WHEREAS, on September 26, 1996, the Planning and Zoning Commisslon recommended approval of the requested change In zoning; and WHEREAS, the City Council finds that the change In zoning will be In compll- ance with the Denton Development Plan; NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS, SECTION I, That the zoning dlstriot classification and use designation of the 1,0362 sores of land described in Exhibit A, attached hereto and Incorporated hereln by reference, Is changed from the Multi Famlly 1 (MF-1) zoning district olasslficallun and use designatlon to the Planned Development (PD) zoning district classification and use designation under the comprehenslve zoning ordinance of the City of Denton, Texas. SECTION 11, That Exhibit B, attached hereto and incorporated Into this ordinance by reference, Is approved as the Detailed Plan for thls planned develop- ment dlstriot, In accordance with Divlslon 2 of Article IV of Chapter 36 of the Code of Ordinances. SECTION III. That the City's official zoning map Is hereby amended to show the change In zoning district olasslflcatlon. SECTION IV, That any person violating any provlsion of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000,00. Each day that a provlsion of this ordinance Is vlolated shall constltute a separate and distinct offense. s ' I FCTION V, That this ordinance shalt become effootive fourteen (14) days from the date of Its passage, and the City Secretary is hereby directed to cause the oaptlon of this ordinance to be published twice In the Denton Record•Chronlcle, a dally newspaper published In the City of Denton, Texas, within ten (10) daya of the date of Its passage. PASSED AND APPROVED this the day of 1996. JACK MILLER, MAYOR ATTEST; JENNIFER WALTERS, CITY SECRETARY BY; APPROVED AS TO LEGAL FORM: HERSFRT L. PROUTY,-O" ATTORNEY / I a I ' I I EXHIBIT In situated BEING a In ho Eugenie Puchalshl Sutveyy,OAbstrac acre) )Nutrout mber of tCi y of Donlon, Denton County Texas, and being all of Lots 5, 6, 7, B, 0 and 10, Olock t a~ Owsiey Park Addition, an Addition to tho City of Donlon, Denton County, Texds, coccrdingg to the Plot thereof recorded In Volume 1, Page 6, of the Plot Reoords of Damon County, Texas, being more particularly desc0bed by metes and bounds us follows; S OINNINO at u 112 Inch Iran rod found for the common noetheosl corner of said Lot 4 and the northwest corner of Lot 5, of sold DlDak 15 of sold Cwsley Park Addi'llon and In the south right-of- woy 11ne of W. Prairie Street (a 50 foot ?Ighh-of-way); THENCE Coat, with the common north line of said Lots 5, 6, 7, 8, 9 and 10 and the south right-of-way line of sold W. "rairle S treet, a dlslonoe of 1700,45 lest (prorated called 300.00 feet) to a said l ol6t0 Inch ondIron lhe northweetr othe ornercommon of Ilrlof cornse ~5, of said dwpley Park Addition; ENC ree& 00 conds his southarlght-o 8woy line of soldeW. SPeolls St eetsan~ddwthrtthe dlstanes of f 4sold 9 87otea10 an the west f (called 154 00 ! met) to sold n 5%6 Inch aIron rod set for the common southeast corner of sold Lot 10 and the soulhwaat corner of sold Lot 11 and In a north line of North Was State Unlverslty, THENCE West, with the common south llne of sold Lois 10, 9, 8, 7, 6 and 6 and a north line of sold North Texas Stole University, a dlslonee of 301,89 feet (protaled - oaNed 300,00 foot) to a 12 Inch Iron rod found for the oommon southwest corner of said lot 5 and the southeast comer of sold Lot 4; THENCE North 00 dsgrdes 39 minulos 22 seconds Eadt, deporting the north line of sold North Texas State University and with the c dIgtonce of ommon west line of sold Lot 6 and the east line of said Lot 4, o SCOWNINC of the he east described tract containing the 45,08 square feet (110382 acre) of land, more or less, `r I II I~ I ' I t rite !+►Y1d N YJlA'1 A1K1111YMOd I I~r JAI • /Jr l W M .V I I r ti ~ I 1 \lV , •I 1 + PILM A b r tz~ t~ f~ I tll ~ t ~I:# i .tif I tl;r il t q QI t I• III 1~. ~ v1 1 4. Apondn Itt.m~ V;, li 1 1 I1 _ S ~t t 1y If t kkk 1 14 Ski i f f r Awdo No, r OITY COUNCIL REPORT. F'OFUfAT - DATEI October 81 1996 TOI Mayor and Members of the City Council FROMI Tod Banavides, City Manager sU13JE0TI Amendment to sections 34-41, 42 and 43 of the Code of Ordinances concerning development contracts RECOMMENDATIONI Planning and Zoning Oommission recommends adoption of the proposed ordinance S VEAOXOROUNDI Amendment to sections 34-41, 42 and 43 will extend the life of the required performance bond concerning publio improvements to one year after completion of the improvements and eliminate the requirements for a payment bond and maintenance bond. ppAlso limits the use of an escrow account in lieu of it ourfordinance ompatiblo withu statelaw00 ItMaeliminatess the requirement mfor maintenance and payment bonds thus reducing developer costs, These changes will also reduce paper work clarifying and simplifying escrow requirements, PROGRAMS, b PART NTS-L-OR GROUPS AFP' .nmEbt Engineering and Transportation Department Contractors Developers F'ISOAL IH&Q.1 Reduction in cost to contractors and developers due to lesser bonding requirements. RESPECTFULLY SUBMITTEDI e enev es City Manager Pre aced b I v a n senior civil Engineer Approvedl er arc Die c r of ngineering 6 Transportation AEE00967 w r. $I 1WPDOCAOM\CN74.2 ORDINANCE N0. AN ORDINANCE AMENDING SECTIONS 34-41, 34-42, AND 34-43 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON TO PROVIDE NEW CONTENTS AND A N YEAR EW PROCEDURE FOR DEVELOPMENT CONTRACTS AND TO PROVIDE FOR A ONE PLLETIOWARRANTY A'OR OTHERCCONDIT.IO~NS AS STATED HEREIN PROVXDING MA SAVINGS CLAUM AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Engineer has recommended that various changes be made to the standard development contract and the de- velopment procedure to expedite the process,,-including the sli- inination of the payment bond and the maintananas Londe and WHEREAS, the City Council has determined that these changes in procedure are in the public interest and are consistent with the competitive bidding laws and wishes to amend subohapter C, "De- velopment Participation in Contracts for, public Improvements" of the"Coda of Ordinances of the City of Dentonl NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINSi SCION I. That Section 34-41 "Contents of Development Con- tract" of the Code of Ordinances of the City of Denton is hereby amended to read as followst Sao, 34-41. Contents of Development Contract. The development contract shall be in a farm and contain provisions deemed necessary by the city engineer, as approved by the pity attorney, to ensure proper construction and completion of the im- provements, that payment is made therefor and compliance with the provisions of this chapter. The contract shall contain, but not be limited to, the following provisionsi (a) nescrlpt.ion and cost. A description of the improvements, their location and the contract price thereof or, if there is no contract amount yet determined, the estimated cost thereof certified by a registered engineer and ap- _,provad by the city engineer. The contract must establish the limit of participation by the city at a level not to exceed thirty percent (304) of the total contract price, in accordance with Tex. Loc. Gov't Code 5212.072. (b) Specifications. That the improvements will be construct- ed in accordance with the provisions of this chapter and the standards and specif icatione applicable to the cityos public works projects, (c) .Inspection and orders. That the contractor and subcon- tractors will cooperate with and abide by the orders of the city engineer, executive director of utilities, and city inspoctors in constructing the improvement. All the developer's books and records related to the project 2 . t3 I iv 1 1 i4 shall be available for inspection by the city. (d) xnsuranoe. That the owner or contractor will comply with the insurance requirements applicable to the cit oa public works project and provide certificates evidencing such insurance coverages to the city engineer, (e) Performance bond. That the owner or contractor shall provide a performance bond as required by Tex, Gov't Code Ann. $2253.021 (Vernon Supp, 1996, as amended) and 5212,073 Tex, Loa, Gov't Code ann, (Vernon Supp. 1996, as amended) and in conformance with the most current edition of the Standard Specifications for Public Works construc- tion adopted by the North Central Texas Council of Governments (NCTCOG), as amended by city, in the amount of one hundred (100) percent of the cost of constructing the public improvements. The bond shall be furnished on the form provided by the City of Denton which shall inolude a provision-insuring the repair and replacement of all defects in the improvements due to faulty materi- als and workmanship that appear within a period of one (1) year from the date of acceptance of the improvements by the City. The performance bond shall be issued by a surety company authorized to do business in the State of Texas and acceptable to the City of Denton, (f) Requirements of sureties. That the requirements for sureties to issue bonds and the standards for additional or subptitute bonds as set forth in NCTCOG standards referenced above are incorporated into this section for ail purposes and shall be controlling in all aspects unless in conflict with the terms set forth in this section. SECTION. It. That Section 34-42 nMiscellanecus Documentation Requirements" of the Code of ordinances of the City of Denton is hereby amended by amending subsection (a) thereof to read as follower Sec, 34-42. Miscellaneous Documentation Requirements. (a) Affidavit of contractor. The city engineer may require the owner or contractor or both to furnish a list of all contractors and subcontractors who performed labor on or persons supplying material for the improvements and shall require a written release of all claims from any such person prior to acceptance of the improvements. SECTION III. That Section 34-43 "Construction Inspection?, of the Code of Ordinances of the City of Denton is hereby amended by amending subsection (a) thereof to read as followai page 2 3 rf r Sao. 34.43, Construction Inspection, (a) Construction inspection and acceptance. The developer shall cause his engineer to design, stake, and help interpret the plans during construction of improvements and shall cause his contractor to construct the improve. ments in accordance with the chapter and engineering plans. The approved engineering plan shall be so marked on the face by the city engineer. The city en inner shall inspect any and all phases o£ the construction of improvements for subdivisions and shall make a final inspection at least thirty (30) days before the one year warranty period on the performance bond expires. The subdivider or his contractor should maintain daily con- tact with the city engineer during construction improve- ments, No sanitary sewer, water, or storm sewer pipe shall be covered without approval of the city engineer, No flexible base material, subgrade material, or stabili- xation shall be applied to the street subgrade without the approval of the city, No concrete may be asphaltic surface applied to the base withoutd the approval of the city The city engineer may at any time cause any construction, installation, maintenance, or location or improvements to cease when, in hts judgment, the requirements of this chapter or the standards and specifications as herainbefore provided have been violated and may require such reconstruction or other work as may be necessary to correct any such violation. UNION a~ That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent urisdiction, such holding shall not affect the .validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any such invalidity, 2=TION y. That all ordinances or parts of ordinances in force when the provisions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict only. The non-conflicting sections, sentences, paragraphs, and phrases shall remain in full force and effect, 5~CTXON VT That save and except as amended hereby, all the sections, sentences, and clauses of Chapter 34 cif the Code of ordinances of the City of Denton, Texas shall remain in full force and effect. ,CTTON V_r That this ordinance shall become effective immediately upon its passage and approval, Page 3 4 2• PASSED AND APPROVED this the day of 1996, AC x , MA Oli I ATTESTi JENNIFER WAITERS, CITY SECRETARY BY APPROVED AS TO Y,E= FORM i HERBERT L. PROUTY, CM ATTORNEY BY[ Page a 5 'tt MEMORANDUM DAM August 20, 1996 TOr planning & Zoning Commission FROMi David Salmon, p,B,, Senior Civil gnginee~ SUMYE;CTo Amendment to Chapter 34 of the Code of Ordinances concerning Development Contracts and Bonding Requirements Due to an Attorney Generals opinion and in a continuing effort to streamline the City's development process, staff is recommending several changes to the City's Development Contract process, Section 212,071 of the Texas Local Government Code requires the execution of a development contract whenever a contractor is proposing to construct public improvements that will be dedicated to the public, The parties involved are the contractor, the owner/developer and the City. In the case of a new subdivision, the plat may not be filed until the development contracts have been executed and bonds provided, tinder Texas Government Code 2253 subchapter C, the city must require a performance bond in an amount not less than 100 of the cost of construction of the public improvements. A payment bond may be required, but it is not a must. An affidavit of payment may be substituted for the payment bond; however does not provide the same level of protection as the payment bond. If the performance bond and contract are drawn properly, the surety on the performance bond must correct any defects in workmanship for a period of one year from final completion of the project. In that instance, a separate maintenance bond becomes redundant, Attached is a chart comparing current development contract requirements with the proposed requirements as well as a draft ordinance, a copy of the revised Development contract, Bond and Recrow documents, The reasons behind the changes are as follows; A9900797 t7 , glkt P & Z Amendment to Code of Ordinances page 2 of 3 1. The current performance bond is only held until the project is complete and is not required if building permits are not issued prior to completion of improvements, Dy extending the performance bond to one year after completion of the 1 construction, the maintenance bond may be eliminated, The 1 100& performance bond affords the citizens of Denton much more protection than the 10k maintenance bond, The contractor has one less bond to purchase, According to the Texas Government Code, cities must require performance bonds to guarantee construction in all cases, Our current practice of not requiring them under certain circumstances is inconsistent with state law, 2. Deducing the escrow agreement limit from $50,000 to $15,000 will eliminate concern with a possible conflict with the state's competitive bidding law. Realistically, any contractor or developer that can put over $15,000 in escrow shouldn't have a problem obtaining bonds. History has shown us that most of the oontractors or developers that have used the escrow option use it for projects of less than $50000. On only a few occasions has an escrow over $15,000 been used, 3. Payment bonds protect the citizens of Denton in the event that a contractor does not pay a material supplier or subcontractor, state [,aw does not require that cities receive a payment bond, In addition, the affidavit of payment certifies that the contractor has paid all applicable parties, Eliminating this bond saves the contractor money, As long as the City receives the affidavit of payment, the City can demonstrate that it made a reasonable effort to ensure that all parties were paid, This does not afford the citizens the same level of protection, but the City's legal staff feel the risk is slight, In summary, although the purpose and life of onc, bond is being extended, two other bonds are being completely eliminated which will save time and cost associated with processing development contracts, Requiring performance bonds in all cases and t;sducing the escrow limit to $15,000 will bring our process in compliance with state law, All changes combined will make the City of Denton's development contract process more consistent with other cities in Texas. AEE00797 1 7 i1 P & 2 Amendment to Code of ordinances page 2 Of 3 Docwpent Current Development COnUraot pro coed Required for all Same as current except developments that wording changes in repose public reference to m ovoment associated g bonds Performance Bond Worth loot of construction cost of Worth Loot of public improvements, construction cost of public improvements, Held until project is Held for 1 year after complete, completion of project, Ellorew agreement may be Escrow agreement may be substituted if cost of substituted if cost of improvements .ts less improvementg is less than $50,000, than $15,000. Not required if no Required for all building permits are issued before public projects, improvements are ---oo_ mpleta Payment Bond Worth 1004 of construction cost of Eliminated public improvements, Held untI'l project is complete and affidavit Of payment provided, Escrow agreement may be substituted if cost of improvements are lose than $25,000, Not required if no building permits are issued before public improvements are com late, Maintenance Bond Worth lot of construction cost of Eliminated public improvements, Held for one year after completion of project. Escrow agreement may be substituted if cost of improvements are less than $25,000. Required for all ro acts. Affidavit of Payment Required for all ro acts Required for all rojents AEE00797 d w i; 1 P&7 Minutes August 28, 1996 Page 8 Mr. Robbins: 'Yes for Council, by charter, That Is not state law, It Is our charter, Mr. Cochran; I move we recommend approval to the Clry Counell on proposed annexation of a 96178 acre tract located north of Mingo Road and west of Cooper Creek Road, A-72, Mr, Moreno. Second, Ms. Ruswllt Any discussion? All In favor please raise your right hand, Opposed same sign, Approved, (7-0) V11. Void a public hearing and consider making a recommendation to the City Council with regard to the proposed annexation of a 291115 acre tract located north of 131agg Road and east of Geesling Road. (A-73) Ms, Russell opened the publlo hearing, Mr, Persaud; This twenty-nlne acre tract has been platted into seven lots earlier this year and according to our Subdivlsiun Regulations any land that is platted i, to five of more lots must then have an annexation study done. We did that study and took it to Council and Council felt that we should proceed with annexation, We have had the first two public hearings with the City Council and I have met with the landowners, We are here for yon- ecommendation tonight. Ms. Russell; Is there anyone to speak In favor of the petition? Is there anyone to speak In opposition? We will close the public hearing, Mr, Cochran; I move we recommend approval of the proposed annexation to the city Council of 29, 115 acre tract located north of Blagg Road and east of Geesling Road, A-731 Mr, Jones; Second, Ms, Russell; Any dlsoA!',llon? Ali In favor please ralse your right hand, Opposed same sign. Approved, {7-0) 't M. Hold a public hearing and consider making a recommendation to the CI Council amending Section 34.41, 42, and 43 of the Code of Ordinanres concerning Deveregardi Contracts, lopment Ms, Russell opened iho public hearing, Mr, Salmon, As most of you are aware when someone comes In with a plat and there are public improvements associated with the plat, before that plat can be filed they are required to enter Into a development contract with the city, Sometimes that process Is somewhat confusing espechk. y If the contractor and developer have not done them before. Our process Is relatively consistent with other cities In the metroplex. Even so, sometimes it can be very untimely and sometimes the developers forget about the development contract until they come In to get a building permit, With that In mind and with a recent attorney general's opinion, we felt that It was necessary to make some changes to t, P&z Minutes August :ta, 1996 Page 9 our dovelopment contract process, We are trying to make it be Moro in line with state law and to also making It a little quicker, easier, and less expensive to do for the developer and contractor, 1 would lie to highlight the differences between our current process and what we are proposing, Development contracts are required for all developments that have public Improvements associated with them, The actual contract is going to have to be chan some of ged somewhat In forms of the wording as It refers to the different bonds that we require. We are also changing the bonding requirements, We currently have a practice of not requiring any bonds If a developer builds all of the public Improvements and has them accepted and completed prior to asking for any building g permits, Not very many people use that option, That Is probably the biggest thing addressed In the attorney general's opinion and his opinion Is that cities are supposed to require development bonds In all cases, so we can not offer that as an option for the developer, They simply have to supply us with a performance bond, whether or not they Intend to request building bond Is worth 100% of the construction costs of the public Improvemets rnCurren ly we hold that perfri mance bond for a period until he Improvements have been completed and accepted by the city, We tue proposing that we hold It for one year after the completion of the project. That Is one moJor change. We do allow a developer and/or contractor to put up an escrow account in place of a performance bond if the amount of public improvements Is less than fifty thousand dollars. On a recommendation from our legal staff we are proposing to reduce that amount to fifteen thousand dollars, so there still Is an escrow option, however It would only be used if the amount of Improvements was less than fifteen thousand dollars, We currently require a payment bond In addition to a performance bond which Is also worth 100% of the construction cost, Again we hold that until the end of the project, Developers can put up an escrow account also in 11eu of that bond, We currently don't require that If they are not going to request IdIng permits, don't have to require that bond, State law doesn't require It so we are proposing to eliminate the requirement to post that bond or escrow, We currently require a third bond called a maintenance bond which Is normally put up at the end of the project. It Is worth ten percent of the total construction costs and we hold It for one year after the project has been completed, The developer can put up an escrow account in place of the maintenance bond If they wish to do so as long as they fall under to twenty. five thousand dollar limit. We require that on all projeots that have public Improvements Involved, Because we are proposing to keep the performance bond for one ,year we are proposing to eliminate the maintenance bond, One thing that somewhat takes the place of the maintenance bond is an affidavit of payment which we currently require, We will still require an affidavit of payment at the end of the project Basically an affidavit of payment Is a form that we have where the contractor certifies that all of the materials suppliers and all of the subcontractors have been paid, If a contractor or developer doesn't pay his suppliers or subcontractors and the city accepts the project, there have been cases where those suppliers and subcontractors have sued the city for that payment, We feel that we have to have something for the city's protection and to citizens' protectlort, We have some reasonable assurance because th,, affidavit of payment at least shows that the city has made an effort to make sure that It was done, Staff Is recommending that these changes be made to our process. Mr, Cochran, Can you think of any examples of worse case scenarios where the suppliers and subcontractors were not paid? Mr, Salmon; 1 don't think that has happened in Denton In recent years. Typically that Is what a payment bond Is for. The city holds the payment bond until It knows that everyone has been paid. A payment bond provides morn protection than an affidavit of payment does, An affidavit of td P&z Minutes August 28, 1996 Page 10 payment doesn't really provide protection, It Just shows that the city has gone to the effort of trying to make sure that the developer has paid everyone and lie Is certifying that he has, So if a subcontractor or a supplier tries to come back at the city then we could at least show where the developer has certified that he has paid his people, i Mr, Drake: Part of the Issue that we are trying to deal with here Is to Include a warranty and an Indemnification In the language of the development contract itself to help mitigate that Impact, l Clearly It would be best to continue to require the maintenance and the payment bond, The Issue is that staff Is trying to stremallne the process and trying to minimize the burden and expense upon developers, I think that when the city attorney reviewed this he felt that provided we make a number of changes to the performance bond to bring It more in line with performance bond requirements, make a number of changes to the ordinance Itself and to the development contract to provide for these warranties, and to provide for a one year warranty porlod afterwards, that It would mitigate the Impact of eliminating some of these other bonds, Mr, Cochran, I think that the goal of streamlining the process Is a good one, I would hate to see us exposed In any way though. Ms, Russell; This has gone by legal? Mn Salmon: Yes, we met with Herb Prouty, We discussed the basic concepts and the legal department has prepared the draft ordinance that you have In your backup, They have also helped prepare the bond documents and the contract documents, Mr. Cochran; Where did this proposal come from? Did It come from citizens or staff? Mr. Salmon: It Is a combination of things, A lot of developers and contractors really don't like doing development contracts Staff has recognized that it can be a real palm to deal with and staff Initiated streamlining this, When our new city attorney came on board we sent some development contracts for review and our city attorney pointed out that we needed to have a performance bond on all of the projects, We pointed out that It is not required In all cases by our ordinance and he suggested that our ordinance does not comply with state law and that we needed to look at that. Mr. Drake, There were additionally certain circumstances under which there were some deficiencies legally with our performance bond and with our development contracts. • Mr, Cochran; How long has this policy been In effect? Mr. Salmon We have been using this form for the past fifteca years acid there have been some minor modifications within the last ten years, Mr. Cochran; How does it compare with surrounding cities? Mr, Salmon, By bringing It Into compllsnce with slate law It makes It more consistent with some of the metroplex cities, Some cities require payment bonds and some don't, It Is optional, the state doesn't require It like thoy do a performance bond, It just depends on the city and how cautious they 11 P&Z Minutes August 28, 1996 Page I I want to be, Not all cities r! quire payment bonds, Ms, Russell: Is there anyone to speak in favor? Is there anyone to speak In opposition? We will close the public hearing, Any final remarks? Mr, Salmon: What we are considering this evening is the proposed change In the ordinance which you have In your backup, There are some typos In those documents that we will work out with the legal department. We really just need to look at the ordinance In terms of recommending it to the City Council, Mr, Powell: I move that we recommend to City Council that they amend Sections 34.41, 42, and 43 of the Code of Ordinances concerning development contracts per staffs request Ms. Schertz: I'll second, Ms, Russell: Any discussion? All In favor please raise your right hand, Opposed same sign, Approved, (7.0) TX, Consider the street closure and right-of-way abandonment of Avenue E from Eagle Drive south to 1.358 access road Mr. Salmon: As most of you know the University of North Texas Is proposing to construct a new Music and Fine Art Bducatlon Building at the Intersection of Avenue E and 1.35 and Eagle Drive, In order for the building to be built the right-of-way for Avenue E that runs between 1-35 and Eagle Drive will have to be abandoned and the street actually removed, The University has requested that this be done, The right-of-way that Is being abandoned has been acquired over several years. In 1989 the city reconstructed Ave E to align the Intersection so that you could exit 1.35 and enter Ave, E. We are proposing to abandon all of the rlghaof-way Including any utility easements that are In that area, According to the Utility Department any utilities that are currently In that area are simply being used by the University and can simply be relocated or abandoned as the University needs them to be, No other property owner Is dependent on any utilities that are In these areas The University and the city are bath going to participate in the reconstruction of the streets In the area, The University Is going to dedicate any right-of-way that is needed in order to accomplish the reconstructlon of the streets In the area, Staff Is recommending that the right-of-way be abandoned with the condition that any existing utilities are either abandoned or relocated as needed by the University, Mr, Cochran: Are there any plans to spruce up their entrance from the 1.35 access road? Mr, Salmon: I believe that a portion of this road will be a divided road with a median and landscaped. Mr, Cochran: I move approval of the Ave E street closure and right-of-way abandonment frorrA Eagle Drive south to 1.35E access road. Ms. Glanzer: Second, I ~z d ...~,ti AponUn Nrn,.,,. _ Agonda IROPij 6~ f?ats. ORDINANCE: N0, AN ORDINANCE ACCEPTING COMPETITIVE BIOS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR TIME EXPENDITURE Or 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 roviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown In the "Bid Proposals" submitted therefore; and WHEREAS, the City Counnll tuts provided in the City Budget for the appropriation of fluids to be used for the purchase of the materials, equipment, supplie^ or sorvicos approved and accepted heroin; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; SM.TION_1 That the numbered Items in the following numbered bids for materials, equipment, supplies, or services, shown in die "Bid Proposals" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such Items; BID ITEM NUMBER -NQ- VENDOR AMOUNT 1927 ALL DIVERSIFIED HEALTH CARE/ DOCTORS REPORTINO SERVICE x54,250,00 1933 ALL CUMMINS UTILITY SUPPLY x16,21250 SECTIONAL 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. SECTIONIII. 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 ,,called sums contained in the Bid Proposal and related documents herein approved and accepted. 1 w 1 S1=1()hUy That by the acceptance and approval of the above numbered Items of the submitted bids, the City Council hereby authorizes the oxpendituro of Nnds therefor in the amount and In accordance with the approved blds or pursuant to a Written contract made pursuant thereto as authorized heroin, SECTION-V.I That this ordinance shall hecome effective Immediately upon Its passage and approval. PASSED AND APPROVED this day oF19961 j JACK MILLER, MAYOR r A17BST: JENNIFER WALTERS, CITY SECRETARY i BY. I APPROVED AS TO LEGAL FORM; HERBERT L. PROUTY, CITY A'1"PORNLY 'I BY; SUPPMORD - 2 1 DATE; OCTOBFR 15, 1996 CITY' COIJNCIL.REPDRI, TO: Mayor and Members of the City Council FROM; Ted Denavides, City Manager SUBJECT: RFS1' #1927 BILLING AND COLLECTION OF AMBULANCE FEES { l=MMENDATIO1Ni We recommend that Request for Sealed proposal #1927 be awarded to Diversified 11001111 Care/Dootors Reporting Service, SUMMARYt This proposal Is for the privatization or outsourcing of the billing and colleotlon of CMS fees, The proposal submitted by Diversified Medical Heaith/Dootors Reporting Service (DRS) Is intended to Improve collection rates and expedite the billing process, Dlvemifled Medical Health Is the group that will do the Initial billing at a rate of 10% of amount collected, Doctors Reporting Service will handle bad debt collections for those Indicated by the City at a rate of 25%. Additional details about the program were presented to Council at the September 24, 1996, work session, BACKGRO.UNDt Contracts for Diversified Medical Health and Doctors Roporting Services, Memorandum fi-om Jett] Rainey, Treasury Services Manager, PROC,EAMSo-DEPARTMENTS_-OR__GROUPS_APEEGTEDA Customer Service Division; Emergency Medical Services. PICAL-YMIACTr The estimated expenditure for these collection services is approximately $54,250,00 And has been Included in the 1996!97 budget, Respectflilly subndltcd: o~ Ted tieoavldes Approved: City Manager Name: Tom D, Shaw, C,P Title: Purchasing Agent 780,AtlGNDA 3 1'i J J.. d 1 r. r. i i { t DlveroNfed 10°b of collected revenue - $40,684 Net i HealthCare 26% of bad debt $6,733 Cost Doctors Rpt $47,417 Taxes 1204 of net collections _ ---"6 ,052 - Net Medical Addltlonal6% If collection Is above $433,770 COet Della System Reimburse difference if collection drops below $433,770 $82 062 Munlolpal 11% of net collectons $47,715 Net Services Cost Bureau $4'1716 W w 'i nda 8% of current collactlons $32,647 Net Nabors Plus costa of supplies $6,464 Cost Does n,)t collect bad debt balances $38,001 "Pikes 13.6°~ for 30 day collectlons $64,923 Net TWoportailon 26% of 31 !o 00 day collections cost Services, Inc 60% of bad debt $13,467 $68390 'National Flet tee, $10lacct for 180 days $31,87.0 Net Credits 21% of collactlons older than 180 days $6,666 Cost Mo, $37,476 *No prior experience 10/9 0198 6 AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DIVERSIFIED HEALTHCARE SERVICES, INC. TO PROVIDE BILLING SERVICES THIS AGREEMENT is made on the day of 19960 between the CITY OF DENTON, TEXAS (City) and DIVERSIFIED HEALTHCARE SERVICES, INC. (Biller), a corporation authorized to do business in the State of Texas, to provide for the billing of certain acoounts receivable of the City, The parties in consideration of the mutual covenants set forth hereinbelow, agree as follows3 1. Biller#s gerviaea, From time to time, the City will send accounts receivable to Biller for Emergency Medical Service ("EMS") services that are owed to but have not been collected by the City. Biller agrees to work diligently and to put forth its best efforts to timely and properly bill and perform follow-up on said accounts all monies due the City on the accounts receivable placed into the hands of Biller.. Biller shall familiarize itself, its agents, ser- vants, and employees with the Fair Debt Collection Practices Act and agrees to abide with all governing laws regarding debt billing and collections, 2, billerfe Retention of Aoaounts, The Biller shall retain Emergency Medical Service accounts for a period of six (6) months from the date received from the city. Biller shall promptly return the accounts to the City upon expiration of the period of time specified for retaining the account, unless an installment agree- ment to pay the account has been signed by the debtor within the time period Biller is authorized to retain the account, if Biller does have a signed installment agreement, the Biller may retain the account until expiration of the time period in which monies are to be paid under the installment agreement, but no installment agreement shall be made on a City account for a period of time in excess of twelve months without the City's prior written consent, 3. Biller's Compensation, As compensation for its services, Biller shall be entitled to receive a billing service fee of ten percent (lot) on all accounts collected by Biller on those accounts sent to Biller by the City. 4. Records and Audits. Biller shall maintain records in a manner that it can provide to the City, within twenty-four hours, the present status of and the billing/collection efforts expended ,)n all accounts receivable held by it for the City. The City reserves the right to audit all financial and work records of the Biller to assure the City that proper reporting and remittance is being made, The auditing may be by the City personnel or by inda,pendent accoun- tants, at the sole expense of the City. The audit must be per- t I S 7• ~H formed on Biller's premises and the Biller will provide at its expense, work areas and documentation to assist in the audit, The audit must be performed during normal business hours, 830 a.m, to 5130 p,m, Central time, Monday through Friday, and shall be requested at least three business days in advance. 5. Meetings to Determine Progress, Biller's representative shall meet with the City's representative from time to time, throughout the existence of this agreement, as reasonably requested by the City, to review Billeros activities and to discuss any problems and/or special requirements, 66 Colleotien by Attorney. Biller may recommend that an account be referred to an attorney for collection, In such case, the City may choose to have the account returned to the City with- out further compensation to Biller or the City may consent in writing to referral to an attorney selected by Biller. If the City consents to a referral to an attorney by Biller, the City shall advance filing fees and other court costs necessary to institute and prosecute a lawsuit, but the city shall not bo liable for the expenditure of any court coat or other fee in excess of $300,00 for any one account unless the City has given its prior consent, The City shall be paid sixty percent of the monies recovered by the attorney on each account referred by Biller. 7, Biller's Monthly Reports. Biller shall submit to the City between the 25th and 20th day of each month a written report on all assigned accounts showing the following informations A. Name of debtor and aeculsnt number B. Date debtor paid C. Where payment was made - (City's or Biller's office) D. Amount of commission charged on payment B. Accounts that are paid in full F. Accounts that are being released by Biller, with the reason(s) stated G. Total of money collected for the month H. Total monies collected to date T. A rendering of money due the City 8. Remittanoe of Funds. Biller will remit to the city be- tween the 15th and 20th day of each month the net collections re- ceived by Biller during the previous month, Biller may endorse any { deposit item requiring an endorsement as agent for the City, Biller's statement shall reflect the gross amount collected on behalf of the City and the net amount due Biller, The City shall notify Biller of payments made directly to the City within ton (10) business days of receipt and the City agrees to remit to Biller within thirty (30) days of receiving Biller's statement, any amount due Biller, 5 d r t, 91 eerformanoe auaranty by Biller for the 8leven !South Period Vrom November 1, 1996 through September 30, 1997. In consideration of the City engaging the billing services of Diversified Health care, Xnc,, Biller guarantees that it will collect City of Denton EMS accounts for the period from November 1, 1996 through September 30, 1997 at the same, or greater collection rate than collected by the previous collector contracted by the City, Collection Express services, Ina, (11CES14) for the period from November 1, 1995 through September 30, 1996, City and Biller stipulate that the collection rate for that period was 49$, The city will determine by audit conducted in October 1997, whether or not Biller has collected at the name or greater collection rate as referenced above, In the event that Biller's collection rate is less than the collection rate collected by CES for the period from October 1, 1995 through September 30, 1996 then Biller shall pay and return to the City within thirty days after the audit results are mailed to Biller, that sum of money equal to twenty-five (254) percent of the amounts Biller received as compensation from City under this agreement for the period from November 1, 1996 through September 30, 1997, 10, Term and Termination. This Agreement shall continue in effect from year to year, but either the City or Biller may terminate without cause at any time by giving the other party to the agreement sixty (6o) days written notice prior to the date of termination. If Biller terminates this Agreement, all accounts shall be immediately returned to the City and no compensation shall be paid to Biller past the termination date, if the City terminates this Agreement, Biller may continue to render its services on the accounts it has for thirty days after the termination date and shall be paid the compensation established by this Agreement, After the thirty day period, Biller shall return all accounts to the City without receiving further compensation, except Biller may retain accounts for which the debtor has signed an installmont agreement until the expiration of the time in which monies are to be paid under the agreement, Biller shall be bound by all the terms and conditions of this Agreement as to the accounts it is authorized to retain after termination. 11. Notices, Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and sent by certified mail to the parties as follows: City: Hathy DuBose Executive Director of Finance City of Denton 215 E. McKinney Denton, Texas 76201 6 l u Billera Diversified Healthcare Services, Ina, ATM 1P. indesnification. Biller agrees to indemnify and save harmless and defend the city at its own expense from any and every olaim, demand, suit, loss, damage, cost and expense which the City may suffer or incur by reason of any claim assorted against the City as a result of Billeris acts, omissions or conduct under this Agreement. 134 rndependent contractor. Biller is an independent contractor in perforwing the services under this Agreement. 14. Insuranoe, Biller shall obtain and shall keep in full force and effect during the term of this Agreement, a policy of public liability insurance in the amount of no less than $1,000,000, naming the City as an additional insured. Biller shall furnish a copy of said policy to the City. 16. Bond. Biller shall obtain and keep in full force and effect during the term of this Agreement and for ,a period of ninety days thereafter, a surety/fidelity bond from a company authorized to do business in the state of Texas, and in a form approved by the city Attorney, City of Denton, Texas, in the amount of $1000000.000 guaranteeing payment to the city of monies due the city under this Agreement, and indemnifying and holding the City harmless against and from any and all loss, costs, damages, larceny theft, embezzlement or fraudulent conversion of funds due the City. 16. hasignrent, This Agreement shall be binding upon, and will inure to the benefit of the successors and assigns of the City and Biller. 174 Venue, Any action brought by either party regardin this Agreement shall be brought in the court of competent Jurisdiction located in Denton County, Texas. 18. Effect of Amendment. No modification, renewal extension, or waiver of this Agreement shall be binding unless in writing, and signed by the City and Biller, 19. Entire Agreement, This Agreement contains the entire and only agreement between the City and Biller regarding the subject matter hereof. 20, Bffeotive Date, This Agreement shall be effective as of October 1, 1996. 7 VI Ni.) is SIGNED thin the day of DIVERSIFIED HEALTHCARE SERVICES, INC. (Biller) BYt _ ITS ATTESTi j DIVERSIFIED HEALTHCARE SERVICES, INC. I BY1 CITY OF DENTON, TEXAS (City) DYt TED BENAVIDES, CITY MANAGER ATTESTi JENNIFER WALTERS, CITY SECRETARY BY$ APPROVED AS TO LEGAL FORM1 HERBERT L. PROUTY, CITY ATTORNEY BY, I 8 r AGREEMENT BETWEEN THE CITY OF VENTON, TEXAS AND DOCTORS REPORTING SERVICE OF TEXAS, INC. TO PROVIDE COLLECTION SERVICES THIS AGREEMENT is made on the day of , 1996, between the CITY OF DENTON, TEXAS (City) and DOCTORS REPORTING SERVICE OF TEXAS, INC. (Collector), a corporation authorized to do business in the State of Texas, to provide for the collection of certain accounts receivable of the City. The parties in consideration of the mutual covenants set forth hereinbelow, agree as follows: 1. Collector's Services. From time to time, the City will send accounts receivable to Collector for Emergency Medical Service ("EMS") services that are owed to, but have not been collected by the City. Collector agrees to work diligently and to put forth its best efforts to collect all monies due the City on the accounts receivable placed into the hands of Collector. Collector shall familiarize itself, its agents, servants, and employees with the Fair Debt Collection Practices Act and agrees to abide with all governing laws regarding debt collections. 2. Collector's Retention of Accounts. The Collector shall retain Emergency Medical Service accounts for a period of twelve months from the date received from the City. Collector shall promptly return the accounts to the City upon expiration of the period of time specified for retaining the account, unless an installment agreement to pay the account: has been signed by the debtor within the time period Collector is authorized to retain the account. If Collector does have a signed installment agreement, the Collector may retain the account until ,expiration of the time period in which monies are to be paid under the installment agreement, but no installment agreement shall be made on a city account for a period of time in excess of twelve months without the City's prior written consent. Notwithstanding any other provision of this Agreement, the City may recall any account from Collector as deemed necessary, by telephone or letter. 3. Collector's Compensation. As compensation for its ser- vices, Collector shall retain Twenty-Five percent (25%) of the monies collected from each account sent to Collector by the City. 4. Records and Audits. Collector shall maintain records in a manner that it can provide to the City, within twenty-four hours, the present status of aiid the collection efforts expended on all accounts receivable held by it for the City. The City reserves the right to audit all financial and work records of the Collector to assure the City that proper reporting and remittance is being made. The auditing may be by the City personnel or by independent accoun- tants, at the sole expense of the City. The audit must be per- formed on Collector's premises and the Collector will provide at 9 r M q F ti its expense, work areas and documentation to assist in the audit. The audit must be performed during normal business hours, 8:30 a.m. re 5:30 p.m. Central time, Monday through Friday, and shall be quested at least three business days in advance. 5• Meetings To representative shall meet with the Cit ,progress. to time, throughout the existence of this agreement, as r fromtt ly requested by the city, to review Collectoras nto discuss any problems and/or special requireme s nts. activities and 6. Collection by Attorney, account be referred to an attorney Collector the City may recommend that an collection. y may choose to have the account returned to the City with L out further compensation to he such case, writing to referral to an Collector or the City City consents e a attorney selected b y may consent in shall advance to a referral to an attorne by Collector. If the statute and g fees and other court costs 1 ecessar the city for the expen prosecute a diture of any lawsuit, but the City shall not be lto in- iable for t 0 for any one accout court cost or other fee in excess of consent. The City shall n unless the City has given its covered by the attorne paid sixty percent of the monies re- y on each account referred by Collector. 7. Collector's Monthly Reports. Collector shall submit to the on all City between tdeaccth andconth day of each month a written report 9 the following information: a) Name of debtor and account number b) Date debtor paid c) ofWhere fice)par°ent was made (City's or Collectors d) Amount of commission charged on payment f) Accounts that are paid in full Accounts that are being released b the reason(s) stated by Collector, with 9) Total of money collected for the month h) Total monies collected to date a) A rendering of money due the city 8. Reaittanee of tunas. Collector will remit to the city between the 15th and 20th day ceived by collector durin t of each month the net collections re- dorse any deposit item requitrin revious month. Collector may en. City. Collectors g an endorsement as agent for the lected on behalf of statement sha11 reflect the the City shall notif y and the net amount due gross amount Collector, cThe col- within ten y Collector of payments made directly to the City busines mit to Collector within Chart of receipt and the City statement, any amount due y (30) days of receiv ng Collectors collector. 10 x { V 9. Term and Termination. This Agreement shall continue in effect from year to year, but either the City or Collector may terminate without cause at any time by giving the other party to the Agreement sixty (60) days written notice prior to the date of termination. If Collector terminates this Agreement, all accounts shall be immediately returned to the City and no compensation shall be paid to collector past the termination date. If the City terminates this Agreement, Collector may continue to render its services on the accounts it has for thirty days after the t this ermination date and shall be paid the compensation established by the return gallmaccountsftto the City wi bout receiving further com- Y y period, Collector shall pensation, except Collector may retain accounts for which the debtor has signed an installment agreement until the expiration of the time in which monies are to be paid under the agreement. Col- lector shall be bound by all the terms and conditions of this Agreement as to the accounts it is authorized to retain after termination. 10. Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and sent by certified mail to the parties as follows; City: Kathy DuBose Executive Director of Finance City of Denton 215 E. McKinney Denton, Texas 76201 Collector: Doctor's Reporting Service of Texas, Inc. ATTN: 11. Indeaaificaticn. Collector agrees to indemnify and save harmless and defend the City at its own expense from any and every claim, demand, suit, loss, damage, cost and expense which the City may suffer or incur by reason of any claim asserted against the city as a result of Collector's acts, omissions or conduct under this Agreement. 12. Independent Contractor. Collector is an independent contractor in performing the services under this Agreement. 13. Insurance. Collector shall obtain and shall keep in full force and effect during the term of this Agreement, a policy of public liability insurance in the amount of no less than $10000,000 naming the City as an additional insured. Collector shall furnish 11 q 3 r F i a copy of said policy to the City. 14. Bond. Collector shall obtain and keep in full force and effect during the term of this Agreement and for a period of ninety days thereafter, a surety/fidelity bond from a company authorized to do business in the State of Texas, and in a form approved by the City Attorney, City of Denton, Texas, in the amount of $100,000.00, guaranteeing payment to the City of monies due the City under this Agreement, and indemnifying and holding the City harmless against and from any and all Ices, costs, daaages, larceny, theft, embezzlement or fraudulent conversion of funds due the City. 15. Assignment. This Agreement shall be binding upon, and will inure to the benefit of the successors and assigns of the City and Collector. 16. Venue. Any action brought by either party regarding this Agreement shall be brought in the court of competent jurisdiction located in Denton County, Texas. 17. Amendment. No modification, renewal, extension, or waiver of this Agreement shall be binding unless in writing, and signed by the City and Collector. is. Entire Agreement. This Agreement contains the entire and only agreement between the City and Collector regarding the subject matter hereof. 19. affective Date. This Agreement shall be effective as of October 1, 1996. SIGNED this the day of , 1996. DOCTORS REPORTING SERVICE OF TEXAS, INC. (Collector) BY: ITS ATTEST: DOCTORS REPORTING SERVICE OF TEXAS, INC. BY: 12 f CITY OF DENTON, TEXAS , (City) BY: TED BENAVIDES, CITY MANAGER ATTEST: JENNIFER WAWERS, CITY SECRETARY BY., APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 4b+~ 1^ Mk"MINKWUMEA I 13 pS M f S' M E M 0 R A N D U M DATE: October 1, 1996 TO: Tom Shaw, Purchasing Agent FROM: Jerri Rainey, Treasury Services Ma SUBJECT: BID #1927 Coil" the Finance Division and the Fire Department recommend Diversified Hea thCare/Doctors Reporting Services (DHC) to outsource EMS billing and collections. In July, 1996, the City requested proposals for EMS billing and collection services. We received six (6) responses to that request. Three (3) of the vendors: Linda Nabors, Fikes Transporting Services, Inc. , and National Credits, did not meet the minimum qualifications required by the City. Municipal Services Bureau Diversified HealrhCare/Doctors Reporting Services, and Texas Medical Data Systems were interviewed and evaluations were made from their proposals. DHC has the lowest bid of the three (3) qualified vendors. Our goal is to increase revenue collections for EMS. DHC has the staff, resources, and experience to obtain this goal for the City of Denton. If you have any questions, please contact me at X8199. 0 a i - c J•` SD O'f wplemsbidco i 14 f DATE: OCTOBER 15, 1996 CI17LC0 M1 FPORT TO. Mayor and Members of the City Council FROM: Ted Benavides, City Manager SUBJECT: BID H 1953 - FIBERGLASS STREET LIGHT POLES RF.COMMIENDATION: We recommend this bid be awarded to the lowest bidder meeting specifications, Cummins Utility Supply, in the total bid award amount of $16,212.50. SUMMARY: This bid is for the purchase of 35' fiberglass poles and 8' mast arms. These items are for replacement of warehouse stock and will be installed as needed. The lower price offered by Oberlander and Associates is for a concrete pole. The poles offered by Priester and Power Supply do not provide the breakaway feature required by the City for roadway installation. BACKGROUNTIn Tabulation Sheet PROGRAMS- DEPART [ENTS OR GROUPS AFFECTED Warehouse Inventory and Electric Distribution. FISCAL IMPACT; These poles and arms will be funded from Warehouse Working Capital and re- charged to a particular project as needed. Respectfully submitted: Ted Benavides City Manager Approved: ,,N Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent 778.AGENDA 15• s ttiiF k IHI1 N 19u BID NAME FIBERGLASS STREETLIGHT DEALERS CUMMINS TECHLINE TEMPLE SUPOWER PPLY OBEFRANDER PREISTER SU PLY POLE OPEN DATE 9-24-% & ASSOC. I TY_ -__--DE6CRiPT10N VENDOR VENDOR VENDOR VENDOR VENDOR VENDOR_ VENDOR VENDOR FIBERGLASS STREELIGHT 1._ 25 EA ------POLES - J-- $973.00 _ 55600 _ $5"-% _ 5503.00 $377.00 522500 S46&00 90.00 2. 25 EA MAST ARM INC. --_--503.00 S37A0 $06.50 506.19 %5.00 560.00 571.50 MFT ---.--SHAKESPEARE.- SHERMAN- - SHERMAN SHERMAN-SHERMAN _LONESTAR _ WATLEY WATLEY - CONCRETE t r YES I NO NO YES NO - YES VFS-- YES ` NO NO i NO BW FERFERRED SALES 1 s b F M Agenda Nu.--- - Agenda Item A" DateAazv-z-LQy~ ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including: items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the perro,s ho'ding exclusive distribution rights to the materials; need not be submitted to competitiNe bid and WHEREAS, the City Coincil wishes to procure one or more of the items mentioned in tt:. above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION-1. That the following purchases of materials, equipment or supplies, as described in the "Purchase Orders" attached hereto, are hereby approved: PURCHASE ORDERIIUMBER VENDOR AMOUNT 70304 DAVIS WATER & WASTE INDUSTRIES S411610.00 SECTION II. That the acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTIOI JU, That the City Manager is hereby authorized to execute any contracts relating to the items specified in Section I and the expenditure of funds pursuant to said contracts is hereby authorized. i sFCTION IV. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the - day of 1996 JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS. CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: SOLESOURCE 2 r F DATE: OCTOBER 15, 1996 CITY-CO-UNCIL]IFPORT TO: Mayor and Members of the City Council FROM: Ted Benavides, City Manager SUBJECT: PURCHASE ORDER #70304; DAVIS WATER AND WASTE INDUSTRIES RECON13H DATIOH; We recommend purchase order #70304 be approved to Davis Water and Waste Industries in the arnount of 541,610,00 SUMMARY; Purchase Order #70304 is for the acquisition of approximately 20,805 gallons of Bioxide. Bioxide is a chemical additive designed for the removal of dissolved hydrogen sulfide and reduction of sewage BOD in sewers. It is a registered trademark of Davis Water and Waste Industries and only available from them. This product was chosen after several attempts to control the odor problems that the Hickory Creek wastewater line was creating in certain areas. Bioxide is a product protected by Patent #4,911,843 and is exempt from the bid process as outlined in Texas Local Govt. Code Chapter 252. The estimated quantity is an annual supply and will be released for shipment as needed. BACKGROUND.- Purchase Order #70304 to Davis Water and Waste Industries, Letter from Davis Water and Waste Industries dated August 28, 1996, Memo from Jim Coulter, Environmental Services Manager. PROGRAMS"DLeARTMElSTS_OR-GROUP&AFFECTEDt Environmental Services Ct;vision, Citizens affected by the Hickory Creek Sewerline. FISCAL. IMPACT: Funds for the purchase of Bioxide will come from 1996/97 budget expenditures, account 4625-082.0470-8502 Special Services. Respectfully submitted: Ted Benavides City Manager Approved: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent 779.AOEMA 3 r a k PURCIIASE ORDER NO: 70304 THIS IS A 11W.3 rvardwt nK"I MI)pow tos ell CONFIRMING ORDER XXX urvaicos, dolrvory slips, casos. (IF MARKEDI tins., box@$. packing slips and bills. DO NOT DUPLICATE Req No: Bid No: Date: 10-15-96 Page Na. Ol CITY PURCHASING DIVISION 19001 a TEXXANTONf T~X~SEXAS 765201-4354 8171383-7100 D/FW METRO 8171267-0042 FAX 817/382-4692 VENDOR DAVIS WATER 6 WASTE IND., INC. DELIVERY CONFIR"TION ONLY NAME/ ADDRESS P.O. BOX 101371 ADDRESS WASTEWATER PLANT ATLANTA, GA 30392 1100 DENZCINa TEXAS 76201 VENDOR NO. DAV56050 DELIVERY QUOTED 09 36 97 FDB DESTINATION BUYER TS TERMS JIM f 00 20,805 GA VENDOR CAT. # MFG MANE 2.00 41,610.00 CITY # 17513 i BIOXIDE TO TREAT ODOR AT STATE SCODOL KANBOLE AGE TOTALS 41,610.00 TOTALS 41,610.00 001 625 082 0470 8502 41,610.00 VFNOOR INSTRUCTIONS: 3. Terms - Net 30 ar i.,, t.e.t l Stand otipirw 1M9ICs with duplieMa copy. ; 4. Shipping instructions: F.0.8. Destination prepaid UIsis Ow.-so sp.ennU tl to Accounts Payable 5. No federal or state sales uA shall bo Included 116 E WAInner SL in prices billed. tact i vision penlon.,Tri,76201;4i94 UEQUISITIONER COPY s vM 'Serving the Woter Industry Since V o Shipping Address Mo ling Address! PROCESS div. 2850 Tollevast Road P. O. Box 29 Sarasota, FL 34243 Tolfevast.FL 34270.0020 941-355.2971 . FAX: 941.351.4756 August 28, 1996 Fax (817) 383-7507 Mr. Jim Coulter City of Denton 1100 Mayhill Road Denton, TX 76208 RE: SOLE SOURCE BIOXICES Dear Mr. Coulter: I Davis Water & Waste Industries, Inc., Process Division is the sole source provider of BIOXIDEV. The purchase of BIOXIDE® from Davis Water & Waste Industries, Inc. constitutes an implied license to practice the process of "Removal of Dissolved Hydrogen Sulfide and Reduction of Sewage BOD in Sewers and Other Waste Systems", as described in United States Patent #4,911,843. (See enclosed copy.) Should you have any questions or require additional information please feel free to contact me at 1- 800-345-3982. Sincerely, DAVIS WATER & WASTE INDUSTRIES, INC. Process Division 4 /~C~ntc. Lee Kainer Sales Representative A:TENTON.SS 5 i 5 F r, l Y October 1, 1996 I TO: Denise Harpool Senior Buyer FROM: Jim Coulter Environmental Services Manager This memo is to provide backup for our use of Bioxide for the control of hydrogen sulfide odors in the Wimbleton Neighborhood. A year long study was conducted to determine what product would reduce the levels of hydrogen sulfide in the Hickory Creek line. The use of Bioxide was selected after a trial during March of this year. The product proved to be extremely effective in the elimination of hydrogen sulfide gas. The use of Bioxide was selected for its effectiveness and it is a nonhazardous chemical. It takes approximately 57 gallons of Bioxide a day to treat the hydrogen sulfide odors. 6 c 1 Agenda No. Agenda Item: Date CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Ted Benavides, City Manager SUBJECT: INTERLOCAL COOPERATION AGREEMENT FOR LIBRARY SERVICES/FY 1996/97 DATE: October 15, 1996 RECOMMENDATION: An or&nance authorizing the Mayor to execute an agreement between the City of Denton and The County of Denton for the provisions of library services and providing an effective date. SUMMARY: This Interlocal Agreement between the City of Denton and the County of Denton will provide a full array of library services free of charge to all residents of Denton County. Our library will serve approximately 17,587 library users who live outside of the Denton city limits. These Denton County residents will directly benefit from this agreement and will have the same library privileges as do City residents. BACKGROUND: The Denton Public Library has served the County on a contractual basis since 1969. While the level of County funding has never allowed the City of Denton to fully recover the cost of providing library services to out-of-city library users, the City has nonetheless continued to provide services to the County within those limited resources. FISCAL AC P: For FY 1996197, the County Commissioners voted to adopt a Denton County library funding formula which allocated approximately $1.20 per capita for each of the fourteen (14) libraries in Denton County. (Please see the attached table.) d r, F .141.. Page 2 This funding formula is based on North Central Texas Council of Government's population figures. The total FY 1996/97 allocation of $115,644 includes a $10,000 matching grant. Respectfully submitted, /~,~C ~Lnsrt.l Ted Benavides City Manager Prepared by: Eva D. Poole Director of Library Services Appro I Betty cKean, Ex utive Director Municipal Services & Economic Development x s E DENTON COUNTY LIBRARY ADVISORY BOARD POPULATION FIGURES PER CAPITA: $ 1.20 MATCHING: $10,000 DENTON COUNTY POP: 335,850 POPULATION OF CITIES WITH LIBRARIES: 268,759 REMAINING POPULATION: 67,091 LIBRARY TOTAL. CITY COUNTY PER CAPITA MATCHING TOTAL P, POP. POP. A .LOCATION FUNDS AUBREY 2,780 2,225 555 S 3,336 S 10,000 $ 13,336 CARROLLTON 61,947 49,572 12,375 74,336 10,000 84,336 DENTON 88,037 70,450 17,587 105,644 10,000 IlS,644 FLOWER MND 42,237 33,800 8,437 50,684 10,000 60,684 FRISCO 1,581 1,265 316 1,897 10,000 11,897 JUSTIN 1,750 1,400 350 2,100 10,000 12,100 KRUM 2,187 1,750 437 2,624 10,000 12,624 LAKE CITIES 16,370 13,100 3,270 19,644 10,000 29,644 LEWISVILLE 17,854 57,500 14,354 86,225 10,000 %,225 PILOT POINT ?,561 2,850 711 4,273 10,000 14,273 PONDER 540 432 108 648 10,000 10,648 ROANOKE 8,704 6,965 1,739 10,445 10,000 20,445 SANGEk 5,186 4,150 1,036 6,223 10,000 16,223 THE COLONY 29.116 23,300 SAM 34,939 I0 000 ".919 TOTAL 335.850 268.75 67.091 S 403.019 S 140 000 S Sa 3 019 AUBREY POP: AUBREY 1,100 CROSSROADS 360 KRUGERVILLE 70- 2,225 ROANOKE POP. ROANOKE 1,900 TROPHY CLUB 4,750 MARSHALL CREEK 315 6,965 LAKE CITIES POP. CORINTH 5,300 HICKORY CRF,EK 2,000 LAKE DALLAS 4,450 SHADY SHORES 1.350 13.100 cntypop.96 Scptembcr 16, 1996 b m a A:ILIBRMY.M4 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE COUNTY OF DENTON FOR THE PROVISION OF LIBRARY SERVICES; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is authorized to execute an agree- ment between the City of Denton and the County of Denton for the provision of library services under the terms and conditions con- tained in the agreement attached hereto. SECTION II. That this ordinance shall become effective immed- lately upon its passage and approval. PASSED AND APPROVED this the day of , 1996. JACK MILLER, MAYOR ATTEST: i JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: r E . n~ STATE OF TEXAS, I COUNTY OF DENTON. Iss. I INTBRLOCAL• COOPVv11TION AORE8YZmr von rftn g1tRVrr~a THIS AGREEMENT is made and entered into by and between DSNTON COUNTY, a political subdivision of Texas, hereinafter referred to as "County," and the CITY OF DBNTON, a municipality of Denton County, Texas, hereinafter referred to as "Municipality." WHEREAS, County is a duly organized political subdivision of the State of Texas engaged in the administration of county government and related services for the benefit of the citizens of Denton County; and WHEREAS, Municipality is a duly organized municipality of Denton County, Texas engaged in the provision of library service and related services for the benefit of the citizens of Municipality; and WHEREAS, County has re Y quested and Municipality has agreed to provide library services for all residents of Denton County; and WHEREAS, County and Municipality mutually desire to be subject to the provisions of V.T.C.A., Government Code Chapter 791, the Interlocal Cooperation Act; and V.T.C.A., Local Government Code Chapter 323, County Libraries. NOW, THEREFORE, County and Municipality, for the mutual consideration hereinafter stated, agree and understand as follows: DENTON LIBRARY 19% 1 f I. The term of this agreement shall be for the period from October 1, 1996 through September 30, 1997. II. For the purposes and consideration herein stated and contemplated, Municipality shall provide library services for the residents of county without regard to race, religion, color, age, disability and/or national origin. Upon proper proof by individual(s) of residence in Denton County, Texas, such individual(s) shall be entitled to be issued, at no cost, a library card to be used in connection with said library services. Municipality shall develop and maintain through the Library one or more of the following programs of service: Educational and reading incentive programs and materials for youth. Functional literacy materials and/or tutoring programs for adults. Job training/career development programs and/or materials for all ages. outreach services to eliminate barriers to library services. Educational programs designed to enhance quality of life for adults. III. County designates the County Judge to act on behalf of County and serve as liaison officer for County with and between County and Municipality. The County Judge or his designated substitute shall insure the performance of all duties and obligations of County herein stated and shall devote sufficient time and DENTON LIBRARY 1996 2 yi V } f 1 attention to the execution of said duties on behalf of County in full compliance with the terms and conditions of this agreement, and shall provide immediate and direct supervision of County's employees, agents, contractors, sub-contractors, and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this agreement for the mutual benefit of County and Municipality. IV. Municipality shall designate Eva Poole to act on behalf of Municipality and to serve as liaison officer of Municipality with and between Municipality and County to insure the performance of all duties and obligations of Municipality as herein stated and shall devote sufficient time and attention to the execution of said duties on behalf of Municipality in full compliance with the terms and conditions of this agreement, and, shall provide management of Municipality's employees, agents, contractors, sub-contractors, and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this agreement for the mutual benefit of Municipality and County. Municipality shall provide to County a copy of the annual report submitted to the Texas State Library and shall respond to County's annual questionnaire as documentation of expenditures and provision of service. V. The Municipality shall be solely responsible for all techniques, sequences, procedures, and means and for the coordination of all work performed under the terms and conditions DENTON LIBRARY 1996 3 F of this agreement, shall insure, dedicate and devote the full time and attention of those employees necessary for the proper execution and completion of the duties and obligations of the Municipality stated in this agreement and give all attention necessary for such proper supervision and direction. VI. The Municipality agrees that its library department shall assume the functions of a county library and agrees to provide a librarian who holds or secures a county librarian's certificate from the Texas State Library and Archives Commission. Local Government Code, section 323.011(b). VII. County agrees to and accepts full responsibility for the acts, negligence and/or omissions of all County's employees, agents, sub-contractors, and/or contract laborers and for those of all other persons doing work under a contract or agreement with the County. VIII. The Municipality agrees and accepts full responsibility for the acts, negligence, and/or omissions of all the Municipality's employees, agents, sub-contracts, and/or contract laborers, and for those of all other persons doing work under a contract or agreement with said Municipality. IX. This agreement is not intended to extend the liability of the parties beyond that provided by law. Neither Municipality nor DEMON LIBRARY 1996 4 s County waives any immunity or defense that would otherwise be available to it against claims by third parties. X. Municipality understands and agrees that the Municipality, its employees, servants, agents and representatives shall at no time represent themselves to be employees, servants, agents and/or representatives of County. XI. County understands and agrees that County, its employees, servants, agents and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of Municipality. XII. The address of County is: County Judge, Denton County 110 West Hickory Denton, Texas 76201 Telephone: 817-565-8687 The address of Municipality is: City of Denton 215 East McKinney Denton, Texas 76201 Attention:Lloyd V. Harrell Telephone: 817-566-8200 XIII. For the full performance of the services above stated, County agrees to pay Municipality fees as described herein. County shall pay Municipality fees in the amount of $1.20 per capita totaling ONE HUNDRED FIVE THOUSAND SIX HUNDRED FORTY-FOUR DOLLARS ($105,699.00) based upon North Central Texas Council of DENTON LIBRARY 1996 5 r F II~ Governments population figures provided to Denton County by the Denton Cuuncy Library Advisory Board, payable in equal quarterly installments to Municipality commencing October 1, 1996. In addition, the County agrees to pay Municipality an amount not to exceed TEN THOUSAND DOLLARS ($10,000 in matching funds upon the following conditions. Municipality shall attempt to secure funding from sources other than Denton County. Upon receipt of additional funding, Municipality shall provide proof of the receipt of such funds to the Denton County Auditor on a quarterly basis. Denton County shall match Municipality's additional funding in an amount not to exceed $10,000.00. Payment by County to Municipality shall be made in accordance with the normal and customary processes and business procedures of County, and payment shall be satisfied from current revenues of the County. XIV. This agreement may be terminated at any time, by either party giving sixty (60) days' advance written notice to the other party. In the event of such termination by either party, Municipality shall be compensated pro rata for all services performed to termination date, together with reimbursable expenses then due and as authorized by this agreement. In the event of such termination, should Municipality be overcompensated on a pro rata basis for all services performed to termination date or be overcompensated for reimbursable expenses as authorized by this agreement, then County shall be reimbursed pro rata for all such overcompensation. Acceptance of such reimbursement shall not DENTON LIBRARY 1996 6 i f constitute a waiver of any claim that may otherwise arise out of this agreement. XV. This agreement represents the entire and integrated agreement between Municipality and County and supersedes all prior negotiations, representations and/or agreements, either written or oral. This agreement may be amended only by written instrument signed by both Municipality and County. XVI. The validity of this agreement and any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. Further, this agreement shall be performable and all compensation payable in Denton County, Texas. XVII. In the event that any portion of this agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. XVIII. The undersigned officers and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary orders or resolutions extending said authority have been duly passed and are now in full force and effect. DENTON LIBRARY 1496 7 s d Executed in duplicate originals in Denton County, Texas by the authorized representatives. COUNTY MUNICIPALITY BY COUNTY JUDGE Name: By: Title: Acting on behalf of and by the authority of the Commissioners Resolution # ATTEST: ATTEST: By Denton County Clerk By. City Secretary APPROVED AS TO FORM: APPROVED AS TO FORM: Assistant District Attorney City Attorney APPROVED AS TO CONTENT: Director, Library Services DENTON LIBRARY 1996 8 is IS 1 Agenda No,__.__,_ Agenda Item _ ye- Date-126-/-I DATE: October 15,1996 TO: Mayor and Members of City Council FROM: Ted Benavides, City Manager SUBJECT: Consider adoption of an ordinance annexing and establishing temporary agriculture "A" zoning district classification on a 29.115 acre tract located north of Blagg Road and east of Geesling Road. (A-73) RECOMMENDATION: Planning and Zoning Commission recommends approval. (7 - 0) SUMMARY: The annexation ordinance included in attachment #1 will annex and establish temporary agriculture "A" zoning district classification on a 29.115 acre tract located north of 131agg Road and approximately 2000 feet east of Geesling Road. The tract is shown on site map included in attachment Q. The land owner has been notified of the scheduled public hearings and the required public notices were published in the Denton Record Chronicle. The annexed area will be provided with city services in accordance with a service plan included in the annexation ordinance. BACKGROUND: City Council held a study session with regard to the proposed annexation on June 25, 1996 and directed staff to proceed. On July 2, 1996, City Council approved a schedule setting the dates and time for public hearings with regard to the proposed annexation. (See attachment #3) Two public hearings were held by the City Council on August 6, and August 20, 1996 and no one spoke in opposition to the proposed annexation. The Planning and Zoning Commission considered this item at its regular meeting on August 28, 1996 and voted 7 - 0 to recommend approval. City Council considered the ordinance (first reading) on September 10, 1996 and voted 7.0 for adoption. PROGRAMS, DFPARTIAIENTS OR GRUPS AFFECTED: All city service departments including Police, Fire and EMS, Engineering, Utilities, Solid Waste, Parks and Recreation, Library, Planning and Development, Animal Control and Environmental Health. FISCAL. IMPACT: 1 A fiscal impact analysis (See attachment 45) showed that the City will collect a total revenue of $49,565 over a 10 year period and expend an estimated $53,513 for municipal services over the same period, accounting for a net loss of $3,948. Respectfully sui;rgitted: Ted Benavides City Manager Prepared by: Harry N. ersaud, MRTPI, AICP Senior Planner Approved: 4~~ A4P r H. RobbinDirector, Planning and Development ATTACHMENT i (1) Annexation ordinance (2) Site map (3) Annexation schedule (4) P & Z Minutes (5) Fiscal Impact Analysis 2 n Y F ATTACHMENT 1 NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS ANNEXING A TRACT COMPRISING 29.115 ACRES, LOCATED APPROXIMATELY 2,000 FEET EAST OF GEESLING ROAD AND NORTH OF BLAGG ROAD; TEMPORARILY CLASSIFYING THE ANNEXED PROPERTY AS `A', AGRICULTURAL DISTRICT; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton wishes to extend its City limits line to include %hc 29.115 acre tract as described in exhibit `A'; and WHEREAS, public hearings were held in the Council Chambers on August 6, 1996, and August 20, 1996, (both days being on or after the 90th day but before the 20th day before the date of institution of the proceedings) to allow all interested persons to state their views and present evidence bearing upon this annexation; and WHEREAS, annexation proceedings were instituted for the prop- erty described herein by the introduction of this ordinance at a meeting of the City Council on September 10, 1996; and WHEREAS, this ordinance has been published in full one time in the official newspaper of the City of Denton after annexation pro- finalnactione instituted required and 39 by City days prior to Charter; NOW C THEREFORE, taking THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS. O-CSIDIt. That the tract of land described in exhibit `A', attached hereto and incorporated by reference, is annexed to the City of Denton, Texas. SEC'i-- I`I- That the service plan attached as exhibit `B' and incorporated by reference, which provides for the extension of municipal services to the annexed property, is approved as part of this ordinance. 2Zgjj OrdinancesOof the City That, Denton, pursuant Texas, the annexed the Code of temporarily classified as "A," agricultural district,puntiltper- manent zoning is established by the city council. E' I4FjL_. That the City's official zoning map is amended to jhow the temporary "A" agricultural district classification of the property annexed. SECT_`V; Should any part of this ordinance be held illegal for any reason, the holding shall not affect the remaining portion of this ordinance and the City Council hereby declares it to be its purpose to annex to the City of Denton all the real property dea- 3 cribed in Exhibit "A" regardless of whether any other part of the described property is hereby effectively annexed to the City. If any part of the real property annexed is already included within the city limits of the City of Denton or within the limits of any other city, town or village, or is not within the City of Denton's jurisdiction to annex, the same is hereby excluded from the terri- tory annexed as fully as if the excluded area were expressly des- cribed in this ordinance. SECTION VI That any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION VII. That this ordinance shall become effective four- teen (19) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record Chronicle, the official news- paper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 1996. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERB PPRROUTY, CITY ATTORNEY - 74 6 c r, EXHIBIT A ALL that certain lot, tract, or parcel of land lying and being situated in the COUNTY OF DENTON, STATE OF TEXAS in the Morreau Forrest Survey Abstract Number 417. BEGINNING at an iron rod found for comer in the most westerly west line of that certain tract of land conveyed by deed from Bass Land & Cattle Incorporated to Dieter Schwarz, recorded under Clerk's Number 94-110045817, Real Property Records, Denton County, Texas, said point being the southeast corner of that certain tract of land conveyed by deed from JBT Holding to John Powell Walker, recorded under Clerk's File Number 93-110034125, Real Property Records, Denton County, Texas; THENCE S 02° 46'04" W, 185.95 feet with said west line of said Schwarz tract to a fence corner for comer, THENCE S 580 52'24" E, 827.11 feet with a southwest line of said Schwarz tract to fence comer set for comer, THENCE S 30° 41134" W, 470.61 feet to a fence comer for comer in the existing north line of Blagg Road, a public roadway having a right-of-way of 40.0 feet; THENCE N 854 54'22" W, 515.03 feet with said north line of said Road to a fence comer for comer; THENCE N 854 42'04" W, 506.67 feet with said north line of said Road to an iron rod set for corner; THENCE N 864 04'30" W, 204.25 feet with said north line of said Road to an iron rod set for corner; THENCE N 8611729" W, 172.08 feet with said north line of said Road to an iron rod found for corner; THENCE N 03104'00" E, 980.18 feet to a fence corner for comer in the south line of that certain tract of land conveyed by deed from J.B,T. Holding, Inc. to John Powell Walker, recorded under Clerk's File Number 93.110034125, Real Property Records, Denton County, Texas, THENCE S 890 58' 54" E, 32.24 feet with said south line of said Walker tract to an iron rod set for corner; THENCE S 85156'00" E, 419.30 feet with said south line of said Walker tract to an iron rod set for corner; THENCE S 850 54'530 E, 433.79 feet with said south line of said Walker tract to the PLACE OF BEGMING and containing 29.115 acres of land of which 0.479 acres is hereby dedicated for public roadway. i S s 0 E EXHIBIT B SERVICE PLAN (A-73) CASE A-73 AREA: 29.115 acres LOCATION: North of III Road and East of Geeslin Road. A. k ervicec 1. Patrolling, response to calls, and other routine services will be provided on the effective date of the annexation, using existing personnel and equipment. 2. Upon ultimate development of the area, the some level of police services will be provided to this area as are furnished to comparable areas within the City. B. Fire nrotection and mer en ral Services (EMS) 1. Fire protection and emergency medical services by the present personnel and present equipment, within the limitations of available water and distances from existing fire stations, will be provided to this area on the effective date of the annexation. 2. Upon ultimate development of the area, the same level of fire and emergency ambulance services will be provided to this area as are furnished to comparable areas within the City. C. Water and wastewater services will be extended to the property In accordance to the City's master utility plan and Section 34-118 of the Denton Code of Ordinances. Developers shall pay the actual cost of all water and sewer main extensions, lift r. stations and other necessary facilities required to serve their development in accordance with the City's master utility plan and the Subdivision and Land Development Regulations. The City may participate in the cost to oversize water and sewer mains subject to fund availability and approval of the City Council. Where water or sewer main extensions, lift stations, force mains or other necessary facilities are installed by the developer, the developer shall be entitled to reimbursement of the cost of such facilities from pro-rata charges paid by persons connecting to or using such facilities to serve their property, according to the r F r. . Subdivision and Land Development Regulations. D. i ~V to Collection I. Solid waste collection will be provided to the property at the same level of service as available to cr..-iparable areas within the City, within 60 days of the effective date of annexation. 2. As development and construction commence within this property, and population density increases to the proper level, solid waste collection shall be provided to this property in accordance with then current policies of the City as to frequency, charges and so forth. E. Streets a_ nA 1. The City of Denton's existing policies with regard to street maintenance, applicable throughout the entire City, shall apply to this property beginning with the effective date of the annexation. 2. Routine maintenance of streets and roads will begin in the annexed area on the effective date of annexation using the standards and level of service as currently applied to comparable areas of the City. 3. Reconstruction and resurfacing of streets, installation of storm drainage facilities, construction of curb cuts and gutters, and other such major improvements, as the need therefore is determined by the City Council or Manager, will be accomplished under the established policies of the City. 4. Traffic signals, signage and other traffic control devices will be Installed as the need therefor is established by appropriate study and traffic standards. 5. Street and road lighting will be Installed in the substantially developed areas In accordance with the established policies of the City. F. Environmental Health and ode F Pm e talc 1. Enforcement of the City's environmental health ordinances and regulations including, but not limited to the grass and weed ordinance, garbage and trash ordinance, junked vehicle ordinance, sign ordinance, food handler ordinance, animal control ordinance, and the tree preservation ordinance shall be provided within this area on the effective date of the annexation. These ordinances and regulations will be enforced through the use of existing personnel. 2 { F wc• i 2. Building, plumbing, electrical, gas, and all other construction codes, as may be adopted by the City, svill be enforced within this area beginning with the effective date of the annexation. Existing personnel will be used to provide these services. 3. The City's zoning, subdivision and other ordinances shall be enforced in this area beginning on the effective date of the annexation. 4. All inspection services provided by the City of Denton, but not mentioned above, will be provided to this area beginning on the effective date of the annexation. Existing personnel will be used to provide these services. 5. Flood damage mitigation will be provided by existing codes and ordinances of the City, as of the effective date of the annexation. 6. As development and construction commence within this area, sufficient personnel will be provided to furnish this area with the same level of environmental health and code enforcement services as are furnished to comparable areas within the City. C. Planning and Development ervim The zoning jurisdiction of the Citywill extend to the annexed area on the effective date of annexation. The tract is to be temporarily zoned Agriculture (A) zoning district classification at the time of annexation. 1. Parks and Recreation Services Residents of the newly annexed area may use all recreation facilities, including parks and swimming pools throughout the City, on the effective date of the annexation. The some standards and policies now used within the City will be followed in the maintenance of parks, playgrounds and swimming pools. J. Electrical Distribution Electrical power will be made available to the site as required, at the same level of service currently being provided to comparable areas within the City. K. Miscellaneous Street names and signs will be installed, if required, approximately six (6) months after the effective date of annexation. 3 8 r w Residents of the newly annexed area may use all publicly owned facilities, buildings or services within the city on the effective date of the annexation. All publicly owned facilities, buildings or services will be maintained in accordance with established standards and policies now used in the City. L. Capital Improvements Pram( IPl The CIP of the City is prioritized by such policy guidelines as: 1. Demand for services as compared to other areas will be based on characteristics of topography, land utilization, population density, magnitude of problems as related to comparable areas, cstabllshed technical standards and professional studies. 2. The overall cost-effectiveness of providing a specific facility or service. The annexed area will be considered for CIP improvements in the upcoming CIP plan. This tract will be considered according to the same established criteria as all other areas of the City. 4 p i G r. ATTACHMENT 2 B.F.E. SYSTEMS ADDITION 6 kill C~ ~fT DRIVE E. ~.rmod <SITE Viso r: 1/ ~rf r ~ ~ i w ff{: LLAND- .00 F NE _ f . f - "L_N' J m t`i r f f RD LN .j I' I : I ROSS 41 .1 D R S ~ >1 1 . { rq Q ` t .I I 'til ^ ~ ~ 'n L. 'I ~a. r F l ATTACHMENT # 3 ANNEXATION SCHEDULE June 25, 1996 City Council receives a report and give direction to staff with regard to the proposed annexation. July 2, 1996 City Council considers approval of a schedule for public hearings. July 26, 1996 Notice published in Denton Record Chronicle for first public hearing. Service plan is prepared. August 6, 1996 City Council holds first public hearing. August 9, 1996 Notice published in Denton Record Chronicle for second public hearing. August 20, 1996 City Council holds second public hearing. August 28, 1996 Planning and Zoning Commission holds a public hearing and consider making a recommendation to the City Council with regard to the proposed annexation. &,ptember 10.1996 City Council institutes annexation. First Reading of Annexation ordinance. September 13, 1996 Publication of Annexation ordinance in Denton Record Chronicle. October 15,1996 Final action by City Council. Second reading and adoption of the Annexation ordinance. Meetings in bold require 6 out of 7 votes at City Council City Council special meeting underlined 5 s 0 E P&Z Minutes ATTACHMENT 4 ILJJ August 28, 1996 +Ie Page 8 VII. Hold a public hearing and consider making a recommendation to the Ci regard to the proposed annexation of a 29,115 acre tract located north of Bla east of Geesling Road. (A-73) ty Council with 8g Road and Ms. Russell opened the public hearing. Mr. Persaud: This twenty-nine acre tract has been platted into seven lots earlier this year and according to our Subdivision Regulations any land that is platted into five of more lots Y must then have an annexation study done. We did that study and took it to Council and Council felt that we should proceed with annexation. We have had the first two public hearings with the City Council and I have met with the landown recommendation tonight. ers. We are here for your Ms. Russell: Is there anyone to speak in favor of the petition? Is there anopposition? We will close the public hearing. gone to speak in Mr. Cochran: 1 move we recommend approval of the Proposed annexation to the City Council of 29.115 acre tract located north of Blagg Road and east of Geesl ng Road, 73. Mr. Jones: Second. Ms.. Russell: Any discussion? All in favor please raise your right hand. Opposed sign. Approved. (7-0) carne VM• Hold a public hearing regarding amending Sec on 34-41, 42, and 43 of the Code to the Development Contracts. Code of Ordinances s concerning Ms. Russell opened the public hearing. Mr. Salmon: When someone comes in and does a plat and there are public improvements associated with the plat then they are required to enter into a contract with the city. very timely and sometime the developers forget about the development contract until they come in to get a building It is and make it a little quicker rand easier for! hetdeve oper?s The differenceswbetw en law current process and what we are proposing. Development contracts are required for all our developments that have public improvements associated with them. Currently we have a practice of not requiring a bond if they have all of the improvements done and accepted by the city before applying for building Performance bond is worth 100% of the public improvements. We are proposing that we hold it for one year after the completion of the pro ~We can no longer offer that option. an escrow account in place of a J We do allow a developer to put up performance bond. We are proposing to reduce it to fifteen thousand dollars. We currently require a payment bond with is also 100% of the construction cost for the public improvements. We are proposing entirely. The other bond is a maintenance bond and it is worth 10% of construction cost of the public improvements. We are proposing to eliminate t one also since we are ~a c r ATTACHMENT 5 1• METHODOLOGY., The per resident costs of municipal services are computed based on a total City budget expenditutre figure of 33.1 million. The 33.1 million represents only that portion of total expenditures which are attributable to the provision of city services through the general funds. The per resident cost has been calculated using the total expenditures allocated to residential tax payers divided by the estimated 1996 population. In this analysis, Engineering and Transportation costs are excluded because the proposed annexation will not include Blagg Road and so maintenance and /or future repaving costs will not accrue to the City. Blagg Road has been recently repaved and it is currently being maintained by Denton County under an interlocal agreement. There are three (3) basic components in the analysis as follows: (a) Impacted general fund expenditures: E,tpenditures allocated to residential services (72.4% $ 33,076,562 Estimated total population of City (1996) ) $ 23,947,431 Municipal costs per resident 70,450 $ 339.92 Total expenditures Engineering and Transportation: Estimated total population of City (1996) $ 960,005 Per resident cost 7 $ 13.6 .b2 Adjusted municipal cost per resident excluding Engineering and Transportation $ 326.30 (b) Aaa ea d vat I Current assessed values of properties located on a 29.115 acre tract north of Blagg Road and east of Geesling Road, Two single family homes plus land value 2 Projected total assessed value when development is completed: $ 376, !,,051051,,3 342 Page 1 13 F (c) Developmegt Assumptions; (i) It is assumed that one single family home will be added to the site per year starting in 1997 and will be completed by year 2001. (ii) Following discussions with the DCCAD it is assumed that the assessed value of homes will be $135,000 per unit (iii) It is assumed that the maintenance cost for Blagg Road will be the responsibility of the County. (iv) It is assumed that the developerthome owner will provide water wells and septic tanks as required by the subdivision regulations and that they will be responsible for maintaining those systems until the city's water and waste water lines are extended to the site. 2. FISCAL. IMPACT CAL.CUL.ATION& The calculations shown on exhibit I attached, has been prepared for a ten (10) year period with the assumption that city property tax rate will remain constant over the period 1997 - 2006. The calculations show that the City will collect a total revenue of $49,565 over the 10 year period and expend an estimated $53,513 for municipal services over the same period, accounting for a net loss $3,948. Page 2 14 FISCAL IMPACT CALCULATIONS FOR 10 YEARS 1997--2006 EXHIBIT I REVENUE CALCULATIONS YEAR 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 TOTAL ASSESSED VALUES 511342 646342 781342 916342 1051342 1051342 11051342 1051342 1051342 1051342 CITY TAXES SEE NOTE 1) 1 2786 3496 4226 4956 5687 5687 5687 5687 $687 5687 48565 MUNICIPAL COSTS YEAR 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 TOTAL MUNICIPAL COSTS (2) 1 2610 3589 4568 5547 &200 6200 6200 6200 6200 6200 53513 NET LOSS 155 -93 -342 -591 -513 -513 -513 -513 -513 -513 -3948 Notes: (I)The current tax rate of .5409 Is assumed to be constant through the period 1997 -2006 (2) A per capita cost of $326.30 multiplied by estimated population as development is phased. Average household size Is 2.76 _ r F Agenda No. _ Agenda item Date DATE: October 15, 1996 TO: Mayor and Members of City Council FROM: Ted Benavides, City Manager SUBJECT: Consider adoption of an ordinance annexing and establishing temporary agriculture "A" zoning district classification on a 96.78 acre tract located north of Mingo Road and west of Cooper Creek Road. (A-72) RECOMMENDATION: Planning and Zoning Commission recommends approval. (7 - 0) SUMMARY: The annexation ordinance included in attachment #1 will annex and establish temporary agriculture "A" zoning district classification on a 96.78 acre tract located north of Mingo Road and west of Cooper Creek Road. The tract is shown on site map included in attachment #2. The tract is part of a 239 acre tract owned by EDS, part of which is located in the City limits. The proposed annexation will include the Cooper Creek United Methodist Church located on the north west comer of Cooper Creek and Mingo Roads. EDS will apply to the City for permanent zoning of their entire tract after annexation is completed. The land owners have been notified of the scheduled public hearings and the required public notices were published in the Denton Record Chronicle. Upon annexation city services will be extended to the annexed area in accordance with a service plan included in the annexation ordinance. BACKGROUND: City Council held a study session with regard to the proposed annexation on June 25, 1996 and directed staff to proceed. On July 2, 1996, City Council approved a schedule setting the dates and time for public hearings with regard to the proposed annexation. (See attachment 43) Two public hearings were held by the City Council on August 6, and August 20, 1996 and no one spoke in opposition to the proposed annexation. The Planning and Zoning Commission considered this item at its regular meeting on August 28, 1996 and voted 7 - 0 to recommend approval. City Council considered the ordinance (first reading) on September 10, 1996 and voted 7.0 for adoption. I 1 r F y r PROGRAMS, DEPARTMENTS OR GROUPS AFF T D All city service departments including Police, Fire and EMS, Engineering, Utilities, Solid Waste, Parks and Recreation, Library, Planning and Development, Animal Control and Environmental Health. FISCAL IMPACT: Annual maintenance cost for roads is estimated between $4,000 and $7,000. The entire property has a market value of approximately $958,375 and agriculture exemption appraised value of $22,158. City tax benefit given that the property is vacant is estimated at approximately $120.00 per year. It is expected however, that as this area develops in the future, the revenue benefit will exceed the costs. Respectfully submitted: Ted Benavides City Manager Prepared by: 0 • Harry N. ersaud, MRTPI, AICP Senior Planner A proved: Frank . RobbiAICP Director, Planning and Development ATTACHMENTS. (1) Annexation ordinance (2) Site map (3) Annexation schedule (4) P Z Minutes 2 1EF Y 4 E r ■77ocd,wpd ATTACHMENT 1 NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS ANNEXING A TRACT COMPRISING 96.78 ACRES, LOCATED NORTH OF MINGO ROAD AND WEST OF COOPER CREEK ROAD; TEMPORARILY CLASSIFYING THE ANNEXED PROPERTY AS 'A', AGRICULTURAL DISTRICT; PROVIDING FOR A PENALY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton wishes to extend its City limits line to include the 96.78 acre tract as described in exhibit 'A'; and WHEREAS, public hearings were held in the Council Chambers on August 6, 1996, and August 20, 1996, (both days being on or after the 40th day but before the 20th day before the date of institution of the proceedings) to allow all interested persons to state their views and present evidence bearing upon this annexation; and WHEREAS, annexation proceedings were instituted for the property described herein by the introduction of this ordinance at a meeting of the City Council on September 10, 1996; and WHEREAS, this ordinance has been published in full one time in the official newspaper of the City of Denton after annexation proceedings were instituted and 30 days prior to City Council taking final action, as required by City Charter; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I: That the tract of land described in exhibit 'A', attached hereto and incorporated by reference, is annexed to the City of Denton, Texas. SECTION II: That the service plan attached as exhibit 'B' and incorporated by reference, which provides for the extension of municipal services to the annexed property, is approved as part of this ordinance. SECTION III: That, pursuant to §35-15 (a) of the Code of Ordinances of the City of Denton, Texas, the annexed property is temporarily classified as "A," agricultural district, until permanent zoning is established by the city council. SECTION IV: That the city's official zoning map is amended to show the temporary "A" agricultural district classification of the property annexed. SECTION VL Should any part of this ordinance be held illegal for any reason, the holding shall not affect the remaining portion of this ordinance and the city council hereby declares it to be its purpose to annex to the City of Denton all the real property 3. a€ f F1 described in Exhibit "A" regardless of whether any other part of the described property is hereby effectively annexed to the city. If any part of the real property annexed is already included within the othecity limits of the City of Denton or within the limits of any r city, town or village, or is not within the City of Denton's jurisdiction to annex, the same is hereby excluded from the territory annexed as fully as if the excluded area were expressly described in this ordinance. SECTION VI. That any person violating any ordinance shall, upon conviction, be fined a sum otoexceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION VIr• That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 199b. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY " 7• S F "EXHIBIT A" ALL that certain lot, tract or parcel of land lying and being situated in the County of Denton, State of Texas, being part of the D. Culp Survey, Abstract Number 287 and part of the J. Early Survey, Abstract Number 1279 and part of the T. Living Survey, Abstract Number 729 and being a portion of that 256.974 acre tract of land described by deed to E.D.S. Engineering Corporation as recorded in Volume 922, Page 718 of the Deed Records of Denton County, Texas and being all of a 5 acre tract conveyed to Cooper Creek Methodist Church as recorded in Volume 93, Page 95 of the Deed Records of Denton County, Texas and being the prescribed Cooper Creek Road right-of-way 56 feet wide) effecting a certain 13.071 acre tract conveyed to Alan R. Thetford and wife by deed recorded in Volume 2892, Page 933 of the Real Property Records of Denton County, Texas and effecting a certain 12.00 acre tract conveyed to James A. Roden by deed recorded as 93-R0018804 in the Real Property Records of Denton County, Texas anJ effecting a certain 5.80 acre tract conveyed to Kevin M. Kenney and wife by deed recorded in Volume 1051, Page 868 of the Deed Records of Denton County, Texas and effecting a certain 2.5 acre tract reserved for graveyard, church and school house purposes by deed recorded in Volume 29, Page 229 of the Deed Records of Denton County, Texas and being more particularly described as follows: BEGINNING at a point in the present Denton city limits as established by Ordinance 82.6, said point also being most southerly southwest corner of a 125.25 acre tract annexed by the City of Denton as established by Ordinance 86-88, said point also being 600 feet radial from the center line of State Highway Loop 288; THENCE South 87° 26'24" East along the most southerly south tine of said Ordinance 86-88 annexation and continuing a distance of 2,174.61 feet to a point for corner, said point being an inner ell corner of the T. Living Survey, Abstract Number 729 and being the northwest corner of said J. Early Survey, Abstract Number 1279; THENCE South 86° 18' East crossing a north south road known as Cooper Creek Road a distance of 83.95 feet to a point for corner, said point lying on the most southerly north line of said Thetford tract and being approximately 28' radial from the centerline of Cooper Creek Road, said point also being the beginning of a curve to the left whose radius point bears South 74° 54' 17" East a distance of 900 feet, and whose central angle is 120 03' 12"; THENCE southwesterly along said curve an arc distance of 189.33 feet to a point for corner, said point being approximately 28 feet radial from the centerline of Cooper Creek Road; THENCE South 03° 02'3 1" West passing at 126.69 feet the south line of said Thetford tract and the north line of said Roden tract and continuing along the east 1-S7 S ti 4 right-of-way of Cooper Creek Road passing at 336.14 feet a south line of said Roden tract and the north line of said Kenney tract and continuing along the east right-of. %vay line of Cooper Creek Road passing at 751.59 feet the south line of said Kenney tract and the north line of said cemetery tract and continuing along the east right-of- way line of Cooper Creek Road passing at 997.16 the southwest fence corner of said cemetery tract and continuing a total distance of 1,019.67 feet to a point-for corner, said point lying on the north line of a 9.2154 acre tract annexed by the City of Denton as established by Ordinance 87-187, said point also lying on the north line of the M. Forrest Survey, Abstract Number 417; THENCE North 88° 54'44" West along said lines and Cooper Creek Road passing at 28.40 feet the a southeast corner of said E.D.S. Engineering Corporation and being the outer ell corner of the J. Early Survey, Abstract Number 1279 and continuing a total distance of 224.46 feet to a point for comer, said point being the northwest corner of said M. Forest Survey, Abstract Number 417; THENCE South 01° 05' 53" West along the existing Denton city limits line(Ord. 87- 187) and the east line of said M. Forrest Survey, Abstract Number 417 and a west line of said J. Early Survey, Abstract Number 1279 and along Cooper Creek Road a distance of 785.87 feet to a point for corner, said point lying on the north right-of- way line of the Texas and Pacific Railroad and also being the corner of a tract annexed by the City of Denton as established by Ordinance 65-43; THENCE South 69° 30' 11" West along the existing Denton city limits line(Ord. 65- 43) same being the north right-of-way line of the Texas and Pacific Railroad a distance of 1,691.41 feet to a point for comer, said point lyii,g 600 feet east of and perpendicular to the center line of State Highway Loop 288, said point also being the most southerly southeast corner of a tract annexed by the City of Denton as established by Ordinance 82.6; THENCE North 00° 33'53" East along the existing Denton city limits line (Ord. 82- 6) 600 feet east of and parallel to said center line of State Highway Loop 288 a distance of 896.14 feet (called 907.42 feet in Ord. 82-6) to a point for corner, said point being the beginning of a curve to the left whose radius point bears North 80° 26'07" West a distance of 4,419.72 feet and whose central angle is .'.3° 46 11"; THENCE northwesterly along said curve 600 feet northeast of and parallel to the center line of State Highway Loop 288 and along the existing Denton city limits (Ord. 82-6) an arc length of 1,833.56 feet to the POINT OF BEGINNING and containing 96.78 acres of land. annex2.wpd 6-25.96 I F 1SERVICE PLAN (A-72) CASE A-72 AREA: 96.78 acres LOCATION: North of Mingo Road and West of Cooper Creek Road. A. Police rvicea 1. Patrolling, response to calls, and other routine services will be provided on the effective date of the annexation, using existing personnel and equipment. 2. Upon ultimate development of the area, the same level of police services will be provided to this area as are furnished to comparable areas within the City. B. Fire protection an mergen~y die cervices (FEMS) 1. Fire protection and emergency medical services by the present personnel and present equipment, within the limitations of available water and distances from existing fire stations, will be provided to this area on the effective date of the annexation. 2. Upon ultimate development of the area, the same level of fire and emergency ambulance services will be provided to this area as are furnished to comparable areas within the City. I C. Water/ Wastewater Services Water and wastewater services will be extended to the property in accordance to the City's master utility plan and Section 34-118 of the Denton Code of Ordinances. Developers shall pay the actual cost of all water and sewer main extensions, lift stations and other necessary facilities required to serve their development in accordance with the City's master utility plan and the Subdivision and Land Development Regulations. The City may participate in the cost to oversize water and sewer mains subject to fund availability and approval of the City Council. Where water or sewer main extensions, lift stations, force mains or other necessary facilities are installed by the developer, the developer shall be entitled to reimbursement of the cost of such facilities from pro-rata charges paid by persons connecting to or using stich facilities to serve their property, according to the 7. i r ( Subdivision and Land Development Regulations. D. Solid Waste Collection 1. Solid waste collection will be provided to the property at the same level of senice as available to comparable areas within the City, within 60 days of the l effective date of annexation. r 2. As development and construction commence within this property, and h population density increases to the proper level, solid waste collection shall be provided to this property in accordance with then current policies of the City as to frequency, charges and so forth. E. Streets and Roads 1. The City of Denton's existing policies with regard to street maintenance, applicable throughout the entire City, shall apply to this property beginning with the effective date of the annexation. 2. Routine maintenar .e of streets and roads will begin in the annexed area on the effective date of annexation using the standards and level of service as currently applied to comparable areas of the City. 3. Reconstruction and resurfacing of streets, installation of storm drainage facilities, construction of curb cuts and gutters, and other such major improvements, as the need therefore is determined by the City Council or Manager, will be accomplished under the established policies of the City. 4. Traffic signals, signage and other traffic control devices will be installed as the need therefor is established by appropriate study and traffic standards, 5. Street and road lighting will be installed in the substantially developed areas in accordance with the established policies of the City. F. Environmental Health and Code Faforcement Seryict 1. Enforcement of the City's environmental health ordinances and regulations including, but not limited to the grass and weed ordinance, garbage and trash ordinance, junked vehicle ordinance, sign ordinance, food handler ordinance, animal control ordinance, and the tree preservation ordinance shall be provided within this e.rea on the effective date of the annexation. These ordinances and regulations will be enforced through the use of existing personnel. 2 JL G a F t 2. Building, plumbing, electrical, gas, and all other construction codes, as may be adopted by the City, will be enforced within this area beginning vgth the effective date of the annexation. Existing personnel will be used to proviJi~ best services. I The City's zoning, subdivision and other ordinances shall be enforced in this area beginning on the effective date of the annexation. 4. All inspection services provided by the City of Denton, but not mentioned above, will be provided to this area beginning on the effective date of the annexation. Existing personnel will be used to provide these services. 5. Flood damage mitigation will be provided by existing codes and ordinances of the City as of the effective date of the annexation. 6. As development and construction commence within this area, sufficient personnel will be provided to furnish this area with the same level of environmental health and code enforcement services as are furnished to comparable areas within the City, G PLttinQ and Development Senicec The zoning jurisdiction of the City will extend to the annexed area on the effective date of annexation. The tract is to be temporarily zoned Agri^ulture (A) znning district classification at the time of annexation. I. Parks and Recrea~~~ c Residents of the newly annexed area may use all recreation facilities, including parks and swimming pools throughout the City, on the effective date of the annexation. The some standards and policies now used within the Ci will followed in the maintenan tY be ce of parks, playgrounds and swimming pools. J•ctri_'calI}ictribution Electrical power will be made available to the site as required, at the same level of service currently being provided to comparable areas within the City. K. 1✓iiccellan ,,.,e Street names and signs will be installed, if required, approximately six (6) months after the effective db to of annexation. 3 9 T } F A Residents of the newly annexed area may use all publicly owned facilities, buildings or services within the city on the effective date of the annexation. All publicly owned facilities, buildings or services will be maintained in accordance with established standards and policies now, used in the City. L. Capital Imnrovementa Progra f Ip) The CIP of the City is prioritized by such policy guidelines as: 1. Demand for services as compared to other areas will be based on characteristics of topography, land utilization, population density, magnitude of problems as related to comparable areas, established technical: standards and professional studies. 2. The overall cost-effectiveness of providing a specific facility or service. The annexed area will be considered for CIP improvements in the upcoming CIP plan. This tract will be considered according to the some established criteria as all other areas of the Ci 4 /0. a ATTACHMENT 2 , N N EXATI O N A`72 0'- m- i ti t F w 5d r s t HORN CR ~8 'GE f!:~S,II *PAf~ w r as . : .a w;-d 91 = GP W CT < 9 8RANCH E. n r j e4ps SITE PROPOSED Ra r'ow j FOR ANNEXATION ,Q•~dct i t%. ~ q, ~ w o I j Nft 1`n]r. 5 ; ;Sr AAA . a?i 3 7~' +v ti ~ a f .f. t•. f♦r~~. PX 1paj Is -'am A, ov xos S ,ia 4wv 3~'l RZ6 •;~~~vL■4, .tjra, ri ey .J •r -1Y , GHT a do to. • D e a! ti , , va sp sop goo 900 s a Y! C ATTACHMENT # 3 ANNEXATION SCHEDLII.E June 25, 1996 City Council receives a report and give direction to staff with regard to the proposed annexation. July 2, 1996 City Council considers approval of a schedule for public hearings. July 26, 1996 Notice published in Denton Record Chronicle for first public hearing. Service plan is prepared. August 6, 1996 City Council holds first public hearing. August 9, 1996 Notice published in Denton Record Chronicle for second public hearing. August 20, 1996 City Council holds second public hearing. August 28, 1996 Planning and Zoning Commission holds a public hearing and consider making a recommendation to the City Council with regard to the proposed annexation. September 10, 1996 City Council institutes annexation, First Read inLy of Annexation ordinance, September 13, 1996 Publication of Annexation ordinance in Denton Record Chronicle. October 15, 1996 Final action by City Council. Second reading, and adoption of the Annexation ordinance. Meetings in bold require 6 out of 7 votes at City Council City Council special meeting underlined 5 i b 3''t.tl c f P&Z Minutes ATTACHMENT 4 DRAF-1 August 28, 1996 Page 7 Ms. Scherti: Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (7-0) VI. Hold a public hearing and consider making a recommendation to the City Council with regard to the proposed annexation of a 96.78 acre tract located north of Mingo Road and west of Cooper Creek Road. (A-72) Ms. Russell opened the public hearing. Mr. Persaud: Staff reported to Council with regard to the areas for annexation and the Council directed staff to proceed, that was on June 25th. We had a study session with the Council and they directed staff on the sites for annexation. On July 2nd the Council considered a schedule setting out the dates for the various public hearings. So far we have had two public hearings with the City Council and no one appeared to oppose the annexation. At those hearings EDS spoke in favor of their site. What staff is looking for tonight is a recommendation from P&Z so that we can take the annexation ordinances to City Council. EDS has petitioned the city to annex a portion of about ninety-six acres along Mingo Road. This portion is part of a larger tract consisting of two hundred and thirty-nine acres. EDS will be applying for zoning at a later date. Ms. Russell: Is there anyone to speak in favor of the petition? Is there anyone to speak in opposition? We will close the public hearing. Are there any final remarks? Ms. Schertz: Do all annexations require a six out of seven vote? Mr. Robbins: Yes for Council, by charter. That is not state law, it is our charter. Mr. Cochran: I move we recommend approval to the City Council on proposed annexation of a 96.78 acre tract located north of Mingo Road and west of Cooper Creek Road, A-72. Mr. Moreno: Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (7-0) /3. a F F Age, ' Agenda Item Dale.._& Z-3 ?,ta Date: October 17, 1996 Q-Y COUNCIL REPORT FORMAT 'I0: Mayor and Members of the City Council FROM: Ted Benavides, City Manger SUBJECT: Consider adoption of an ordinance approving the guidelines for operation of the City of Denton's Renal Rehabilitation Program and eligibility criteria, authorizing expenditures in excess of $15,000 for projects meeting the guidelines and criteria. RECOMMENDATION: Staff recommends approval. SUMMARY: Approval of this ordinance adopts the Rental Rehabilitation Program guidelines and authorizes contractor payments in excess of $15,000. The Rental Rehabilitation program guidelines make available a maximum of $8,000 in CDBG funds per rental unit. Owners must place in escrow a minimum of 50% of project costs. Both City of Denton and owner funds will be paid to the contractor by the City after completion, inspection and approval of the work. BACKGROUND: On August 6, 1996 City Council adopted the amended 19% Action Plan for housing and community development activities. The plan included the use of $55,136 for the City's Rental Rehabilitation Program. The program application was a result of citizen input during the public hearing process. Community Development staff developed a set of guidelines and an application form. PROGRAMS. DEPARTMENTS OR GROUPS AFF -CT .D: Tenants and owners of substandard rental units Local contractors Local lending institutions Commwnty Development staff FISCAL IMPACT: The program is funded from the 1996 CDBG allocation and rental rehab program income. Page l x ~i 1JpiI1 1 Respectfully submitted: Ted Benavides City Manager Prepared by: Barbara Ross Community Development Administrator Approved: Frank RobVctor P Executive r Planni ng & Development Attachments: Copy of ordinance Copy of Rental Rehab Program Guidelines Page 2 n F • r t:\Wd0Ce\0rd\rentreh.0rd ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE GUIDELINES FOR THE RENTAL REHABILITATION PROGRAM AND ELIGIBILITY CRITERIA; AUTHORIZING EXPENDITURES IN EXCESS OF $150000 ' FOR PROJECTS MEETING PROGRAM GUIDELINES AND CRITERIA; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the Citg of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing; and rehabilitatertenthe City of ant occupied housing nits by maki g needed g repairs through its Rental Rehabilitation Program, which is administered by the City of Denton Community Development Office and funded through a federal grant; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: ACTION t, That it approves the attached Rental Rehabilitation Program Guidelines and eligibility criteria and authorizes the City of Denton Community Development to administer this program. ,SECTION iI, That it authorizes the expenditure of funds in excess of $15,000 by the community Development Office for projects meeting program guidelines and criteria. SECTION iii. That this ordinance shall become effective Immediately upon its passage. PASSED AND APPROVED this the day of r_, 1996. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATT6RNEY BY: _ - l 3 F':° A l ' r CITY OF DENTON RENTAL REHABILITATION PROGRAM GUIDELINES Page 4 k TABLE OF CONTENTS Introduction Description of Program Procedures 1. Eligibility Requirements 11. Application Processing III. Contractor Selection, Monitoring and Debarment W. Payment to Contractor V. Financial Subsidy Mechanism VI. Deferred Payment Loan with a 10% Per Year Forgiveness VII. Appeals Procedure V111. Program Guidelines IX. Minimum Rehabilitation Standards Appendices Current Fair Market Rents Application Form Appendix I Target Neighborhoods Map (NOT INCLUDED) Appendix Il Appendix III Page 5 r sy Introduction The City of Denton Rental Housing Rehabili Alon Program is designed to assist low and moderate income families in securing safe, sanitary and decent housing. This program's objective is to rehabilitate renter occupied housing units by making needed repairs with the first priority as correcting code violations. The Rental Rehabilitation Program is administered by the City of Denton's Community Development Office and funded through a federal grant. The Community Development Office is located at 100 W. Oak Street, Suite 208. The following pages contain a detailed description of the program including policies and procedures. The purpose of these guidelines is to explain to potential clients and the citizens of Denton, the Rental Housing Rehabilitation Program and types of assistance available. For further information or clarification of the guidelines, contact the Community Development Office at 383-7728. Page 6 S r f i, DESCRIPTION OF PROGRAM PROCEDURES Page 7 s 11 a 1 f " a ! %L6zt31UTY R Q t1RRRENTS: To be eligible for rehabilitation assistance, the applicant must be a United States or a legal resident alien citizen of the . Also, the applicant's primary residence must be within the City of Denton. The applicant must be the owner of a rental unit within a targeted neighborhood and should hold fee simple title to the property. The income of applicants cannot be more than 150% of the median income for the Dallas metropolitan are. Below is a table that indicates the maximum income level based on family size. Household Size Maximum Owner Income 1 $ 50,700 2 $ 57,900 3 $ 65,250 4 $ 72,450 5 $ 78,300 The current tenants of the unit to be rehabilitated must be low or moderate income, Low/Moderate income Is defined as below 80% of the current Dallas area median income limits adjusted for family size. The following table shall be used to establish a tenant's eligibility based on gross family income and family size: Household Size Maximum Tenant Income 1 $ 27,050 2 $ 30,900 3 $ 34,800 4 $ 38,650 5 $ 41,750 6 $ 44,800 7 $ 47,900 8 Page 8 $51,000 t The tenant's statement of income shall be verified by contacting the tenant's employer and/or obtaining a copy of the tenant's latest income tax return. Annual income includes earnings (wages, pensions, etc.) spouses earnings, interest from stocks, bonds, income from real estate, public assistance, etc. Also included is any amount regularly contributed by any other adult member of the family. Applicants must also exhibit the ability to pay monthly property expenses including mortgage payments, taxes, insurance, utility bills, etc. All property taxes assessed by the various taxing agencies in Denton County must be paid In full. II. APPLICATION PROCESSING: Any property owners wishing to apply for Rental Rehabilitation assistance must complete the application and all other required forms included in the proposal packet. All information on the completed applications will be verified by the Community Development staff. If any information is found to have been intentionally falsified, the application will be rejected and the applicant will not be allowed to reapply. If the applicant is determined to be eligible for the program, a preliminary inspection will be made of the dwelling unit. The dwelling unit must meet certain standards to be considered eligible for rehabilitation. These standards are listed below: 1. The unit(s) must be located within the recognized Rental Rehabilitation Target Area (Appendix 3). 2. The unit(s) must not be situated in the Designated Flood Plain Area. 3. The unit(s) must be classified as a renter-occupied structure. 4. The unit(s) must be in an existing condition that would permit rehabilitation to bring the structure to meet current City of Denton building codes. 5. The unit(s) must be serviced by a City approved water supply, sanitary sewer and electrical system. 6. The unit must be two bedroom or larger. Preference will go to three bedroom and four bedroom units. Page 9 b .t w P_LQieCt Sefe tion Project selection will be based upon an analysis of the following factors: Location of unit. Number of bedrooms. Owner's ability to obtain private financing. Number and extent of major health and safety violations to be corrected. Tenant displacement (preference given to no displacement) Economic feasibility Amount of subsidy required Owner's Equity in property Potential impact on neighborhood Track record of landlord in low income tenant placement Management and maintenance capabilities Quality of rehabilitation plan Accessibility or adaptability of unit for handicapped tenants Commitment by landlord to and/or likelihood of low income tenant placement Hl. CONTACTOR SEIFDTION ARONIT~~ . T: Contractors participating in the Rental Rehabilitation Program will be selected by the eligible property owner. The property owner will be required to solicit at least two bids from contractors based on the preliminary work specifications completed by the CD inspector. The property owner shall also be responsible for supplying all bidders with a Community Development Contractor's Packet that includes the contractor information sheet, performance manual, general specifications for workmanship, all insurance and bonding requirements, a contractor's eligibility certification form and a copy of the preliminary work write-up. Bid proposals and all other required forms from the crntractors shall be submitted to Community Development Office for review. Acceptable bid proposals must fall within a ten percent (10%) margin of the cost estimate developed by the community development Inspector. THE CITY OF DENTON AND/OR THE PROPERTY OWNER RESERVE THE RIGHT TO REJECTANYAND ALL BIDS. Any contractor whose name appears on the most current HUD Debarred Contractor's List will not be eligible to participate In this program. Once the contractor has been selected and approved, a contract agreement must be signed. Before the contractor can start work, the property owner must issue a notice to proceed. Page 10 0 F The contractor's work will be monitored by the property owner, the Community Development staff and the City of Denton building code inspectors If the ` property owner considers any work done by the contractor to be unsatisfactory or incomplete, the property owner should advise the contractor of the discrepancy and ask that it be corrected. Acceotysa of Work 1. Final Inspection - In order for the contractor to close out a rehabilitation job, a final Inspection shall be made by the City of Denton building code inspector, the Community Development Inspector, and the property owner. If the final inspection results in no additional work or no specified corrections, the property owner shall sign the contractor's release form which states that all work has been completed to their (property owner's) satisfaction. The building code inspector shall sign a final inspection form to confirm the same. At this time, the contractor is required to submit to the property owner copies of all warranties and releases of liens from subcontractors and suppliers. The Community Development staff will not authorize payment to the contractor until these documents are properly completed and submitted to the property owner and copies provided to the Community Development Office, 2. Wananty of Work - As stated in the rehabilitation contract, the contractor shall guarantee the work performed for a period of at least one year from the date of final acceptance. The owner is responsible for periodic review of the work. Contractor Debarment A contractor will be declared ineligible to participate in projects funded by the City of Denton's Housing Rehabilitation Program for one or more of the following causes: 1. Failure to complete a project within the prescribed contract period. 2. Failure to complete warranty repairs within a reasonable time period. 3. Failure to use licensed plumbing and electrical subcontractors. 4. Failure to obtain proper insurance, i.e., both liability and worker's compensation. 5. Failure to complete work in accordance with program specifications and/or accepted standards of workmanship. Page I I t 0 1 F 6. Failure to pay all subcontractors working on the project appropriately and/or submit affidavits of payment signed by all subcontractors. 7. Failure to obtain proper permits for work to progress. Contractors will be notified of their proposed debarment and will be afforded the opportunity to comment or appeal the action. All appeals must be made in writing to the Community Development Office at least 15 days after the date of the notification letter. IV. PAYMENT TO CONTRACTOR: The contractor shall receive payment for all completed contracts within 15 working days after final inspection and approval of all work. Ten percent (10%) of the total contract amount will be withheld for 30 days. At the end of this time, the property owner must approve release of contingency funds. An "All Bills Paid" affidavit or release of lien from all subcontractors and suppliers must be submitted before payment. Rental rehabilitation partial payment minimum are as follows: projects over 50,000 at least 10% per draw, projects under 50,000 50% and final payment. V. FINANCIAL ASSISTANCE OPTIONS: Owners of rental units are provided with two assistance options: 1) Owners will be provided with up to 25% of the amount necessary to rehabilitate the property. Funds will be provided as a 10-year deferred loan. At the end of the 10-year period, if all program guidelines have been met, the loan will be forgiven. 2) Owners will be provided with up to 50% of the amount necessary to rehabilitate the property. The first 25% will be a deferred loan as described above. Any amount over 25% of the cost of the rehabilitation will be a loan with a 2% interest rate. There will be a 10-year loan term. Option 1 will provide no more than the following dollar amounts: three or four bedroom-$6,000; two bedroom-$5,000. Option 2 will allow owners to double that minimum though they must pay back anything over 25% of the total rehabilitation cost. Owners are required to sign a contract and a lien will be placed on the property for the 10-year period. Owners are required to maintain the property and affirmatively market the property to low and moderate Income households. ' All project funding contributed by the owner will be placed in an escrow account Page 12 with the City of Denton prior to contract execution. i t The owner must also comply with the terms of the note and mortgage that include the following; 11. No conversion to condominiums or any type of cooperative ownership for the 10 year duration of the lien. 2. No discrimination against tenants receiving Federal, State or local rental assistance for the 10 year duration of the lien. 3. The project must be maintained according to adopted City of Denton building codes In effect during the year inwhich the rehabilitation took place. 4. The owner must affirmatively market vacant units for the ten year duration of the lien. 5. The unit will be made available and leased to persons whose income is less than 80% of the area median income. If the owner violates any of these restrictions, the entire amount of the loan less 10% for each full year after completion of the rehabilitation of the units until the time of default, will be due and payable in full immediately after the owner is notified that the loan must be repaid. Vl. PROGRAM JlnFi INES: I . Property owner agrees to comply with all HUD requirements to not discriminate upon the basis of race, ethnicity, religion, gender, disability status or family status in the sale, lease, rental, or use of occupancy of the subject property. 2. Property owner agrees to not award any contract for rehabilitation work to be paid for in whole or in part with the proceeds of the grant, to any contractor who, at the time, is ineligible under the provisions of any applicable regulations Issued by the Secretary of Labor, United States Department of Labor, or the Department of Housing and Urban Development to receive an award of such contract. 3. The tenant will continue to occupy the premises during the rehabilitation. Any tenant required to move temporarily or permanently as a result of the rehabilitation', must be paid relocation/displacement costs as outlined in the City's Tenant Assistance Policy. Page 13 x .:t c r `Any displacement including tenants who move out Ps a result of their inability to pay increased rents, are considered displaced. Displacement costs are the responsibility of the property owner. 4. Property owner agrees that existing house utility services will be made available to the contractor without charge as follows; electricity, gas, water and telephone (local calls only). 5. Property owner agrees that the City shall be the agent for the owner and as such agent shall hold both the owner's private funds and all grant funds in escrow for the purpose of disbursement thereof to the contractor. 6. Property owner agrees that it Is his/her sole responsibility to see that the contractor completes the work specified In his contract to the owner's satisfaction and that the City of Denton has no responsibility for any defects, faulty work or incomplete work by the contractor. The owner further agrees that the City has no liability for warranty of any of the workmanship or materials furnished by the contractor under the contract. The owner further agrees that latent or hidden conditions in the property which were not included in the original inspection and work write-up of the City are not the responsibility of the contractor nor of the City, but remain the responsibility of the owner. 7. As part of the consideration for providing the funds to rehabilitate property as described herein, the property owner agrees to maintain and keep the property in good repair after the completion of the work to be performed by contractor, taking into consideration the ability of the owner to do so. The property owner also agrees to maintain the property up to City of Denton Building code standards that were in effect when the rehabilitation was completed. Owner agrees to do this during the term of the loan agreement and understands that if at anytime the property fails to meet these code standards, the loan amount will become due immediately. 8. The owner shall issue a written Notice to Proceed within thirty (30) days from the date of acceptance of the contractor's bid and proposal. If the Notice to Proceed is not received by the contractor within this 30-day period, the contractor has the option of withdrawing his/her bid and proposal. If the contractor chooses to do this a written notice must be delivered to the owner with a copy to the City. The contractor shall not begin the work to be performed until receipt of written Notice to Proceed from the owner after which the contractor shall begin the work within ten (10) calendar days of the date of said Notice and shall complete said work within sixty (60) days or as agreed to in the Rehabilitation contract. Page 14 r M1 F i 9. The contractor shall not assign the contract without written consent of the owner and the City and/or its agent. 10. The contractor shall not be responsible for any delays in the completion of work due to the following: A. Any acts of the government; including controls or restrictions upon or requisitioning of materials, equipment, tools or labor by reason of war, National Defense or any other national emergency. B. Any acts of the owner. C. Causes not reasonably foreseeable by the parties to this contract at the time of the execution of the contract which are beyond thp: control and without the fault or negligence of the contractor; including but not limited to acts of God or of the public enemy; acts of mother contractor in the performance of some other contract with the fw:-iPr, fires, floods, epidemics, quarantine restrictions, strikes, .reight embargoes and weather of unusual severity such as hurrr,;anes. tornadoes, etc. D. Any delay of the subcontractor occasioned by any of the causes specified in Subparagraphs (A) (8) and (C) above, provided that the contractor promptly (within 10 days) notifies the Owner in writing of the cause of the delay, If the facts show the delay to be properly excusable, the owner shall extend the contract time by a period commensurate with the period of excusable delay. 11. The contractor shall not be held responsible for preexisting violations of law including but not restricted to zoning or building code regulations at the property listed in the contract. Before beginning work, the contractor shall examine the work write-up for compliance with the applicable ordinance and codes for the new or replaced work and shall immediately report any discrepancy to the owner. Where the requirements of the work write-up fail to comply with such applicable ordinances or codes for the new or replaced work, the owner and the City will adjust the contract by change order to conform to such ordinances or code and make appropriate adjustment in the contract price unless waivers in writing covering the difference have been granted by the proper authority. 12. The contractor shall comply with all non-discrimination clauses included in the contract; non-compliance may result in termination of the contract. 13. Bids or proposals will be submitted at the bidder's risk and the City and/or the owner reserve the right to decline funding for projects not in compliance with the guidelines. Page 15 S 4 4 f Y, 14. Subcontractors shall be bound by the terms and conditions of the contract, insofar as it applies to their work. This shall not relieve the general contractor from the full responsibility to the owner for the completion of all work to be executed under this agreement and he shall not be released from this responsibility by any subcontractural agreement he may make with others, 15. When adjacent property is affected or endangered by any work done under this contract, it shall be the responsibility of the contractor to take whatever steps are necessary for the protection of the adjacent property and to notify the owner thereof of such hazards. 16. Repairs shall be made to all surfaces damaged by the contractor resulting from his/her work under this contract at no additional cost to the owner, Where "repair of existing work" is called for by the contract the feature shall be placed in "equal to new condition" either by patching or replacement. All damaged, loose or rotted parts shall be removed and replaced and the finished work shall match adjacent work in design and dimension. j 17. After the final inspection and acceptance by the owner of all work under the contract including cleanup, the contractor shall submit to the owner for approval a requisition for payment. When the required warranties and other required documents have been submitted and the release of liens have been executed by the contractor, the final payment will be made. The payment will include any amounts remaining due under the contract as adjusted in accordance with approved change orders. Payments will be made within 15 days of formal requisition for payment. Partial payments will be made at discretion of the owner with the consent of the City. 18. A Rehabilitation Loan may be made to cover the cost necessary to bring the dwelling into conformance with City of Denton Codes. The two categories of repairs listed below are to be included as priority items: A. B=W e__= Rgpairs: Code violations which create hazardous conditions in regard to safety or health will generally involve the basic heating, plumbing or electrical systems. 8. Secomrnended R n^ -a: Code corrections or preventive maintenance efforts which should be undertaken to avoid more costly future action. (1) Heating, plumbing and electrical improvements (2) Weatherization Page 16 -t r, (3) Exterior work such as roofing, siding, painting, step and porch repair and retaining wa1s (4) interior work such as renovation and repair of existing kitchen and bath facilities. 19. The Denton Central Appraisal District automatically reappraises any house where a building permit is issued. Participants in the Rehabilitation Program should be avrare that the appraised value of their property may increase which consequently may cause their yearly property taxes to increase. The policy shall be thoroughly explained to any person applying for rehabilitation assistance. 20. Change orders may be made to cover an item of work which cannot be determined until sometime during the course of the rehabilitation work. Change orders will be considered as follows: A. Change orders are used to add work necessary to correct incipient items that have been found to be defective after work is in progress but were not anticipated at the time the contract was executed. B. The change order amount is limited to a maximum of 10 percent (10%) of the total contract amount. If it Is necessary to request a change order to make required repairs and the contract is already at the maximum amount, a work item of less priority will be deleted from the bid proposal in order to compensate for the added amount. C. Change orders will be used when it is necessary to delete work from a contract for any reason. When items are deleted from the contract, they shall be at their previously bid amount. When items are deleted, but do not have specitic costs, in such cases the contract shall be reduced by negotiating the cost at prevailing rates. D. All change orders shall be executed by the property owner, contractor, and a Community Development official. E. Except for the purpose of affording protection against any emergency endangering life or property, the Contractor shall make no change in the work or rehabilitation, provide any extra or additional work or supply additional labor, services or materials beyond that actually required for the execution of the contract. F. All change order requests must be submitted by the contractor, signed by the homeownerand approved by Community Development. Page 17 a t No claim for an adjustment of the contract price by the contractor or homeowner will be valid unless this is done. G. The approval of a change order shall constitute authorization by the property owner and Community Development to change the loan amount equal to the cost of the work added or deleted, unless all available funds have been utilized. If this is the case, the owner must absorb the total cost or delete non-code items in order to pay for the work described in the change order. H. It may be necessary to change the time of completion due to the addition of certain work items or delays that are beyond the contractor's control. 21. If the work completed is not in accordance with the construction contract, Community Development shall advise the property owner of the non- compliance who then shall obtain appropriate action from the contractor. No payment shall be processed on a construction contract until a contractor has satisfactorily completed all necessary corrective action. 22. The owner shall be able to select the color and style of certain materials (i.e. carpet, floor covering, paneling, paint, etc.). 23.. The contractor warrants that all materials, fixtures, and equipment furnished by the contractor and its subcontractors shall be new, of good title and that the work will be done in a neat and workmanlike manner. Neither the final payment nor any provision in the contract nor partial or entire use or occupancy of the premises by the owner shall constitute an acceptance of work not done In accordance with the Contact or relieve the Contractor of liability in respect to any express warranties or responsibility for faulty materials or workmanship. The contractor shall promptly remedy any defect in the work and pay for any damage to other work resulting therefrom which may appear within a period of one year from the date of final acceptance of the work unless a longer period is specified. The owner will give notice of observed defects with reasonable promptness. 24. Mobile homes are not eligible for rehabilitation. 25. Interest of certain federal end other officials: A. No member or Delegate to the Congress of the United States and no Resident Commissioner and no federal employee shall be admitted to any share or part of this contract or to any benefit to arise from Page 18 same. 7 4 S r f' r B. No member of the governing body of the City and no other public official of or within the City or County who exercises any functions or ` responsibilities in connection with the administration of the Community Development Block Grant Program and no other employee of the Department of Planning and Community Development who exercises any such functions or responsibilities shall have any interest, direct or indirect, in rehabilitation proceeds which is incompatible or in conflict with the discharge or fulfillment of his functions and responsibilities in connection with the carrying out of the Housing Rehabilitation Program. The length of time this exclusion shall be in effect is one (1) year following the ending of term of office and shall be binding upon, but not limited to, all of the individuals and agencies herein described. 26. The property owner agrees that for a period of ten years after the project is completed t112 to convert the rehabilitated units to condominium ownership. If the owner does convert rehabilitated units to condominium ownership, the entire loan amount shall be due immediately. 27. The property owner agrees not to discriminate against prospective tenants on the basis of their receipt of or eligibility for, housing assistance under any Federal, State or local housing assistance program; on the basis that the tenants have a minor child who will be residing with them; or on the basis that they are a handicapped individuals. 28.. The property owner agrees to n:-:ntain the rehabilitated property up to adopted City of Denton Building Code Standards in effect the year in which the rehabilitation was completed. This will be applicable for a period of at least ten years after the project is completed. 29. The property owner agrees to comply with applicable lead-based paint regulations. 33. The property owner agrees to comply with the City of Denton's Tenant Assistance Policy, including execution of all tenant notifications outlined in the policy. Copies of all tenant correspondence must be submitted to the Community Development Office. VII. MINIMUM REHABILITATION STANDARDS: Roofs Roofs should not leak and have no evidence of rotted decking, fascia or soffit. Any roof with two or more layers of roofing must be stripped to the decking. If it Page 19 is determined a new roof is necessary the decking must be checked for broken or rotted decking and shall be repaired or replaced as needed, decking is required the material shall be one-half inch Plywood or one- waferboard to be used with H clips between sheets. All roofs that one-half ripped inch shall be replaced with new felt paper, the proper flashing and metal d ri with rolled roofing new with 240 pound shingles. Any roof with less than a 4/12 pitch shall be cove red , with at least 12 inches of tap, if installation of rolled roofings not sufficient to promote proper run off roof will be rebuilt. Slding and Trim All exterior siding and trim shall be free of holes, cracks or rotted material which might admit moisture into walls. New siding may be applied new siding and installation is comparable to the repair and painting costs of the existing siding. kifindows All windows and hardware shall operate -satisfactorily. windows shall be replaced. Window glazing shall be weather tight and windows shall be weather stripped so as not to allow entry of air and water around the glass, sashes or window casings. All windows shall have screens and working locks. Drainage The grade of concrete or dirt should drain at least rive feet awa walls. y from foundation Site improvements All replaced concrete surfaces are to be level with the widths to match the existing surfaces. All steps both concrete or wood that pose a threat to the occupants shall be repaired or, if necessary, replaced with treated material or concrete. Foundations and Piers Skirting shall be six (6) inches underground level. If it is necessary to install skirting, new 22 or 24 gauge skirting shall be used. Kitchens Kitchens shall have a specific area which contains a sink with hot and Page 20 running water, counter work space, and space for storage of cooking utensils. cold R , F Stairs All stairs shall provide for the safety of ascent and descent. All treads and risers should show no evidence of breakage or have evidence of excessive wear. All stairs shall be equipped with handrails. Utility Areas Gas or oil fired water heaters or furnaces shall not be located in the bathrooms or bedrooms. In addition to all plumbing and electrical codes, water heaters and furnaces shall be enclosed with a sealed door and adequate upper and lower combustion air. All washer and dryer hookups must meet City Code. Structural System The wood, masonry or steel components shall be in serviceable condition for the expected useful life of the rehabilitated building. Structural members which are in seriously deteriorated condition shall be replaced. Sagging and unlevel floors shall be raised and stabilized as level as possible without causing interior damage. Termite inspection and treatment shall be done if evidence of active infestations exist. A certified pest control company will carry out the treatment and present documents of proof. Electrical System All replacement of existing wiring and equipment shall be done in conformance with the National Electric Code and the City of Denton Code. Any potential source of electrical hazard or ignition of combustible material shall be corrected. GFCI outlets shall be used in bathrooms, kitchen, garage, and exterior receptacles. Additional outlets shall be added to eliminate extension cords and, at the request of the City Inspector, to meet City Codes. Plumbing The plumbing system shall operate free of fouling and clogging, and not have cross-connections which permit contamination of the water supply or back siphonage between fixtures. All sinks, lavatories, water closets, water heater, and other plumbing fixtures shall have accessible cutoff valves. All fixtures shall have P-traps, necessary vents Page 21 and be properly connected to a public or private sewage disposal system. All f sewer lines shall have accessible cleanouts. All water heaters shall be installed with double wall vent stack, a pop-off valve, and overflow to the exterior of the structure. Mechanical Equipment All gas fired heating units must be vented with double wall pipe and proper upper E and lower combustion air. The unit shall not be installed in a living area such as bedrooms or under stairways. Rigid gas pipe must be used to supply heating units with a maximum of three (3) feet of flexible pipe from the stop to the appliance. All duct work shall be properly sealed from the heat source to the register vent and from the return air supply to the heat source. A gas pipe pressure test is required. All leaks must be repaired. Insulation and Weatherization A R-30 insulation value in the attic shall be required. Exterior Doors All exterior doors shall be solid core. All locks shall be capable of tightly securing the door and shall be readily openable from the Inside without the use of ''Keys. All exterior doors shall be weather stripped so that there is no significant entry of air or water into the structure. Porches and Decks All porches and decks shall be safe and capable of supporting anticipated loads. All porches and decks in deteriorated condition and which serve no useful purpose or which are not economically repairable shall be removed. Porches and decks 30 inches above grade shall have guardrails and flights of stairs with four or more risers. They shall have a handrail on at least one side. Gutters and Downspouts Gutters and downspouts should exist where they are deemed necessary to promote proper drainage. Gutters will = normally be installed if they do not already exist. Downspouts that cannot be connected to drain tiles shall have splash backs with proper site grading. Page 22 b z r. Chimneys and Vents Furnace and water heater vents shall be double wall vent pipe. Existing unlined masonry chimneys having open mortar joints or cracks shall be removed or made safe by installation of a UL approved flue liner. Vent-a-hood stacks shall be vented through the roof. Interiors All floors, walls, and ceilings shall be maintained in good, clean, and sanitary condition. All peeling paint, cracked or loose plaster, and other defective surface conditions shall be eliminated. All doors shall be operational. Carpet and vinyl that is badly worn, torn or too dirty to be cleaned shall be replaced. This shall be determined by the C.D. Inspector. Existing carpet shall be cleaned by a commercial steam cleaner, if necessary. Bathrooms An operational water closet, tub or shower, and lavatory should be in the bathreoin. Hot water should flow to the lavatory and tub or shower. Cold water should be supplied to all fixtures. Either a window or an exhaust fan must be present to properly vent the bathroom. Cabinets Built-in kitchen cabinets shall be repaired up to 50 percent of the cost of new cabinets. Bathroom cabinets are not required. Page 23 it t , l 1 APPENDICES Page 24 F t U.S. DEPARTMENT OF HUD PAGE 235 STATE TEXAS 2-1-96 H 0 M E P R O G R A M R E N T S PROGRAM EFFICIENCY 1-BEOROOM 2-BEDROOM 3-BEDROOM 4-BEDROOM 5-BEDROOM 6-BEDROOM MSA Abilene, TX FAIR MARKET RENT 273 304 393 530 644 740 837 50% RENT LIMIT 302 324 388 450 501 553 605 65% RENT LIMIT 373 401 484 551 595 638 661 MSA Amarillo, TX FAIR MARKET RENT 263 332 413 577 680 782 8B3 50% RENT LIMIT 318• 341 410 473 527 581 637 65% RENT LIMIT 393 423 510 581 628 675 721 MSA : Austin-San Marcos, TX FAIR MARKET RENT 395 477 636 883 1043 1199 1355 50% RENT LIMIT 392 420 505 583 651 718 785 65% RENT LIMIT 491 527 634 724 788 851 916 MSA : Beaumont-Port Arthur, TX FAIR MARKET RENT 300 362 442 585 620 713 805 50% RENT LIMIT 326 349 420 485 541 596 6S2 65% RENT LIMIT 403 434 523 596 645 693 742 PMSA : Brasorla. TX FAIR MARKET RENT 419 467 584 814 958 1101 1245 50% RENT LIMIT 410 439 527 610 680 750 820 N 65% RENT LIMIT 513 551 664 758 826 893 961 Z MSA Brownsville-Harlingen-San Benito, TX ~ I FAIR MARKET RENT 315 397 496 621 774 890 1006 50% RENT LIMIT 252 270 325 375 418 461 505 A 65% RENT LIMIT 308 332 400 454 487 519 552 W MSA Sryan-Collage Station, TX W FAIR MARKET RENT 351 408 516 719 847 974 1101 C rA 50% RENT LIMIT 320 343 411 475 531 585 640 H 65% RENT LIMIT 396 426 513 584 632 679 727 I W MSA Corpus Christi, TX FAIR MARKET RENT 328 403 515 700 828 952 1076 50% RENT LIMIT 307 330 396 457 510 56.4 616 65% RENT LIMIT 380 408 493 561 606 649 SOS AREA : Dallas, TX FAIR MARKET RENT 397 456 586 Bit 959 1102 1246 50% RENT LIMIT 422 452 543 628 700 773 845 65% RENT LIMIT 530 568 684 782 8S2 923 993 MSA : E1 Paso, TX FAIR MARKET RENT 370 414 491 681 805 92S 1046 50% RENT LIMIT 252 270 325 375 418 461 505 v 65% RENT LIMIT 308 332 400 454 487 519 552 00 CS: k, 4 . 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Page 26 ff 4 F Agenda Agenda Item_ bate Date 6 DATE: Ocotber 15, 1996 CITY COUNCIL REPORT-FORMAT TO: Mayor and Members of the City Council FROM: Ted Benavides, City Manager BUBJ: Approval of an ordinance setting guidelines for operation of the City of Denton's Optional Reconstruction Program. Eligibility criteria as set forth in the program guidelines for the purpose of authorizing expenditures in excess of $15,000 for projects meeting guidelines and criteria. RECONNEMATIONi staff recommends approval of this ordinance. Approval of this ordinance adopts the Optional Reconstruc- tion Program guidelines and authorizes contractor payments in excess of $15,000. This program allows for demolishing structures not feasible for rehabilitation and reconstruct- ing a new structure within the maximum home subsidy limits set by HUD for the Denton area. City Council will not be required to approve individual projects or project expendi- tures. BACRaROTJ1zD: City of Denton ordinance 93-182, Item 10.30, Section B, states that any project or purchase that exceeds $15,000 must be approved by City Council to comply with State statutes. The maximum expenditure for a reconstruction project will exceed this $15,000 limit. The Community Development Optional Reconstruction Program Guidelines set forth eligibility criteria for expending Federal HOME Grant funds on a project where it has been determined that rehabilitation is infeasible. These guidelines adhere to the rules and regulations as set forth by the U. S. Department of Housing and Urban Development (HUD) regarding project cost limitations and eligible income ranges. Criteria for monitoring/approving applicants and project expenditures are defined in the program guidelines. Monitoring visits by HUD are made on an regular basis to ensure that Federal regulations are adhered to. Contracts are between the homeowner and the builder. Payments to the general contractor are made following a request by the contractor based on approval by the property owner, Community Development Inspector and the Community Development Administrator. Final payments on all projects Page 1 NONE ai y %i JK Y F } i l> Sl~. Report Format October 15, 1996 Page 2 are also contingent on approval by the City's plumbing and electrical inspectors. Community Development staff estimates 4 to'6 reconstruction projects will be completed during the 1996-97 budget year. These projects will exceed the $15,000 expenditure limit. For efficiency in administering these programs, it is recommended by the City's Community Development staff that the program guidelines and expenditure limits be approved by city council once annually rather than requesting approval of expenditures for each individual project. Approval of this ordinance is requested on an annual basis to be in compliance with State statutes. FROARANB, DEPARTMENTS OR GROUPS AFFECTEDt The Community Development staff will administer this program in compliance with Federal regulations. FIBCAL IMPACTi N\A Respectfully submitted: Ted Benavides City Manager Prepared by: Nancy Bger Cemmuni Development office Ap oved: Frank Robbins, AICP Director for Planning & Development Pape 2 T .r : f. 4 y ri 1 t:\Wdoce\ord\optrecon.o ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON OPTIONAL RECONSTRUCTION PROGRAM AND ELIGIBILITY CRITERIA; AUTHORIZING EXPEN- DITURES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GUIDE- LINES AND CRITERIA; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing; and WHEREAS, the City of Denton participates in a Housing Rehabili- tation Program administered by the City of Denton Community Devel- opment Office and funded through a federal grant from the Depart- ment of Housing and Urban Development; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That it approves the Optional Reconstruction Program Guidelines and Optional Reconstruction Program Eligibility Criteria which is attached to this ordinance as Exhibit "A" and authorizes the City of Denton Community Development Office to administer this program. SECTION IT. That it authorizes the expenditure of funds in excess of $15,000 by the Community Development office for projects meeting program guidelines and criteria. SECTION III. That this ordinance shall become effective immed- iately upon its passage. PASSED AND APPROVED this the day of , 1996. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3 ro t. ws~h F I i CITY OF DENTON OPTIONAL RECONSTRUCTION PROGRAM GUIDELINES - 1996/97 Page 4 I i4 9 L . TABLE OF CONTENTS 1. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 II. DESIGNATED AUTHORITY . . . . . . . . . . . . . . . . . . . . . . Page 1 III. IMPLEMENTATION PROCESS . . . . . . . . . . . . . . . . . . . . . Page 1 IV. ELIG?BILITY REQUIREMENTS . . . . . . . . . . . . . . . . . . . . Page 3 V. FEASIBILITY FOR RECONSTRUCTION . . . . . . . . . . . . . . . . . Page 4 VI. SELECTION OF RECIPIENTS FOR ASSISTANCE . . . . . . . . . . . . . Page 4 VII. ALLOWABLE EXPENSES AND CATEGORIES OF FINANCIAL ASSISTANCE . . . . Page 4 VIII. REHOUSING AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . Page 6 IX. FINAL INSPECTION - CERTIFICATE OF OCCUPANCY . . . . . . . . . . . Page 6 APPENDIX is PROGRAM INCOME RANGE TABLE . . . . . . . . . . . . . . Page 7 APPENDIX II: APPLICATION AND TEMPORARY RELOCATION QUESTIONNAIRE . . Page 8 APPENDIX III: REHOUSING AGREEMENT FOR AppllcantS . . . . . . . . . . Page 9 APPENDIX IV: TARGET REHABILITATION NEIGHBORHOODS MAP . . . . . . . Page 11 I Page 5 a F .r CITY OF DLNTON OPTIONAL RECONSTRUCTION PROORAN GUIDELINES ' Unless herein stated otherwise, the general operating procedures contained in the City of Denton's Community Development Homeowner Rehabilitation Program Guidelines will be followed. I. PURPOSE A. The City of Denton, Texas, will provide assistance necessary to accomplish the reconstruction of dwellings not feasible for rehabilita- tion. The Optional Reconstruction Program will provide funds to demolish existing dilapidated dwellings and reconstruct adequate, decent, safe and sanitary replacement dwellings. In addition, the City will also promote the elimination of slum and blight that exists in the City. B. Reconstruction payments and assistance will be carried out under the City of Denton's Community Development Program as an eligible expense from project funds. Assistance shall be subject to the availability of grant funds and U.S. Department of Housing and Urban Development (HUD) implementing regulations. Administrative procedures will be modified to meet any change in rules and regulations of HUD which may occur over time. II. D89IONATED AUTHORITY A. Administrative autnority for implementation of the program will rest with the City of Denton's Community Development Office. This office will serve as the approving office for Rehousing Agreements and for contractual and budget changes as needed for project completion. B. The Community Development Administrator will have the responsibility for final determination of the amount of reconstruction assistance to be made available to individual applicants in accordance with the implementing procedures. C. The Community Development Administrator will be responsible for approval of applicant eligibility for the program and final approval of selection of applicants to be assisted. This will be based upon relative need of applicants on the City's list of houses which have been determined infeasible for rehabilitation under the City's Homeowner Rehabilitation Program. III. INPLENENTATION PROCESS Steps in implementing the program will be as followst A. Community Development Office maintains list of applicants for Homeowner Rehabilitation program assistance where a determination has been made that the structure is not feasible to rehabilitate to minimum standards under the City's Homeowner Rehabilitation Program. Revised 09/02/96 Program Guidelines - Page 1 Page 6 r d . r' • 1 B. Applicant is notified that the rehabilitation of the structure has been determined to be infeasible. Eligibility requirements for the optional Reconstruction Program must be met for applicants to be placed on the optional Reconstruction Program waiting list. C. Staff evaluates applications for reconstruction assistance as specified in Section VI. Staff processes applications as possible under funding and staff limitations. D. Applicant is informed of available assistance. E. Applicant submits a Replacement Housing Assistance Request, acknowledg- ing receipt of information explaining the City's program, and request- ing reconstruction assistance to enable applicant to obtain suitable and adequate housing. F. Community Development Staff determine whether or not approval of applicant's Replacement Housing Assistance Request reasonably may be expected to result in the successful and feasible rehousing of the applicant. In cases where the applicant's general health or income level would preclude his or her adequate and responsible operation of a replacement dwelling; and/or cases in which the costs of the replacement dwelling would be substantially above the costs of typical cases; and to the extent that the probability of the City reaching its Community Development Program goals would be endangered due to cost overruns, the applicant's request may be denied. The applicant pill be notified in writing of the determination and, if the request is not approved, the reasons for denial. When the determination is approval of the applicant's request, a Notice of Approval will be sent informing the applicant that the City is authorized to enter into a Rehousing Agreement with the applicant for a specified Replacement Housing Payment determined appropriate by the city pursuant to its Reconstruc- tion Policy. Prior to any agreement being executed between the applicant and the City, the Community Development Office will comply with the public disclosure and notification/authorisation to and from HUD requirements according to 24CFR Part 70, Section 104(d), Recon- struction and One-for-One Replacement Housing Requirements. 0. A Rehousing Agreement is executed between the applicant and the City, under the terms of which the applicant agrees to move permanently and voluntarily from the dwelling on or before a specified date. H. Community Development Staff will provide counseling and assistance as needed to approved applicants in order to facilitate the applicant's rehousing, including referrals to builders, suppliers, etc. 1. The applicant and the Community Development office agree to the arrangement and method of the approved payments, the applicant will execute a contract with a builder for the selected replacement dwelling. The applicant will also contract for the demolition of the substandard dwelling and for lot and site clearance and preparation. J. When appropriate, the applicant voluntarily vacates the substandard dwelling. K. The replacement dwelling is constructed and appropriately inspected by the City to determine adequacy and compliance with City codes. L. City certifies that the replacement dwelling is decent, safe, and sanitary and ready for occupancy. City issues a final building inspection. Revised 08/02/96 Program Guidelines - Page 2 Page 7 . f a cr M. Applicant accepts replacement home. N. All remaining approved payments are made to applicant at a formal closing ceremony, and applicant acknowledges receipt of payment schedule. 0. Upon completion of all actions in regards to reconstruction, applicant acknowledges in writing that all payments, assistance, and conditions of the Rehousing Agreement have been received to the applicant's satisfaction. P. Applicant occupies replacement structure. IV. ELIOI8Q TY REOUIR-~1T8 Eligibility for reconstruction payments and assistance shall be estab- lished as followas A. Applicant ;must have applied for rehabilitation assistance under the City of De.1ton's Housing Rehabilitation Program. H. Applicant must have been rejected for rehabilitation assistance on the grounds that the applicant's occupied dwelling was not feasible to rehabilitate. C. Applicant must be an owner occupant of the dwelling for which rehabili- tation assistance is requested and reside within a Target Rehabilitation Neighborhood (see Appendix 4). The dwelling must be the applicant's principal residence for a minimum of 8 years prior to the submission of a completed application for assistance. D. Applicant must present proof of ownership by General or Special Wa:ran:y deed. City staff will vtrify proof of ownership with title searches as necessary on the property where the dilapidated structure exists and/or the site where the replacement housing will be built. In situations where the applicant does not have clear title, attempts to clear the title will be initiated with the assistance of the applicant. When meeting this guideline requirement is not feasible, applicant must present proof of ownership (General or Special Warranty Deed) showing fee simple title of 50% or more ownership in the applicant's name. (All other title holders will be requested to relinquish their title rights to the applicant.) Applicants with lase than 100 percent fee simple title must have a continuing right to occupy the premises. Applicant must provide documentation for all existing liens. All current lienholdera will be requested to subordi- nate their lien position to the City. E. Mortgage note balance cannot exceed 50 percent of the property's appraised value as set by the Denton Central Appraisal District. F. The City will relinquish first lien position only to a mortgage lender. In all other cases, lienholders will need to relinquish first lien position to the City. 0. Applicants shall provide complete and accurate information regarding their household composition, household income, and housing situation. Failure to disclose information which may affect eligibility require- ments shall also constitute fraud. Applicants shall be required to make full restitution to the City in the event Community Development services are provided to applicants who provided inaccurate or incomplete information in order to meet eligibility requirements. Revised 08/09/96 Program Guidelines - Page 3 Page 8 s G Y C a]1 Requests for further assistance will be denied unless restitution is made in full. H. Applicants must demonstrate that their income exceede their projected housing expenses. 1. Applicants will agree to conform with Denton Code Enforcement requests prior to being determined eligible for replacement housing assistance. Applicants agree to maintain dwelling and exterior grounds in accor- dance with applicable city ordinances. J. Applicants will be encouraged based on individual needs to attend Community Development applicant education classes, with emphasis being placed on maintenance, budgeting, cost effective decorating, and responsibilities of home ownership when available. R. Must apply to a participating lender and be eligible for a loan to cover part of the cost of the reconstruction. V. FEASIBILITY FOR RECONSTRUCTION Feasibility for reconstruction is based on determining all related coats to complete a reconstruction project. Total project costs cannot exceed the maximum amount allowed as set by the current Section 221(d)(3) Lowest Home Per-Unit Subsidy Limits for the State of Texas as set by the Department of Housing and Urban Development (HUD). Project coats include, but are not limited to, the coat of demolition, site preparation, cost of replacement dwelling, title search fee, and/or City-funded interest buy- down for bank financed portion of the project. VI. SMACTION OF RECIPIENTS FOR ASSISTANCE A. initial recipients of this program will be taken from the list of applicants residing in structures determined to be infeasible to rehabilitate. Additional recipients will be added during subsequent operation of the City of Denton's Housing Rehabilitation Program. B. The number of recipients to receive assistance will be subject to availability of funds. C. Applicants will be placed on a waiting list for reconstruction assistance based on the time and date they originally applied to the Community Development office for rehabilitation assistance. VII. ALLOWABLE EZPENSES AND CATSOORIES OF FINANCIAL ASSISTANCE A. The primary form of assistance to be provided will be the use of Federal HOME grant funds to pay for the coat of the replacement dwelling and costs related to replacing a substandard unit. B. No reconstruction will net fewer bedrooms than the number of bedrooms a family has before reconstruction. Room addition(s) to relieve serious overcrowding may be eligible only with the approval of the Community Development Administrator. In general the City will follow the standards consistent with the applicable Housing Quality Standards described at 24CFR 882.209(b)(2) when consid-wring the number of bedrooms needed to avoid overcrowding: Revised 08/02/46 Program Guidelines - Page 4 Page 9 III SEEN yS Y . F F of Occupants in Household I of Bedrooms Minimum Maxi um 2 1 4 3 3 6 4 6 a C. The City of Denton has TOUR FINANCIAL ASSISTANCE CATEGORIES for those who qualify for the Optional Reconstruction Program. These categories are based on the Qualifying logo" Limits and Ranges for the City of Denton's Federally Assisted Programs (see appendix 1 to these guide- lines for current income limit ranges). A description of the financial assistance categories and their requirements are found in Section III of the Homeowner Rehabilitation Guidelines. D. Allowable expenses will include: 1. Cost of total demolition and clearance of the dilapidated structure, lot clearance, and preparation of job site for new replacement dwelling. 2. Coat to reconstruct safe, sanitary, decent replacement dwelling. 3. Other expenses the Community Development Office determines to be necessary to facilitate the reconstruction of the substandard property. E. Community Development staff will also provide assistance and counseling to applicants as needed, including the followings 1. Information on the program and rehousing options available. 2. Assistance in soliciting bids for replacement housing. 3. Assistance in contractual compliance between applicant and contractor. 4. Assistance in inspection of construction of replacement dwelling, if applicable. 5. Assistance to applicant in evaluation of future maintenance burdens of various housing options. F. If, after the loan payback begins, a household experiences a permanent, substantial lose of household income, a applicant can request a review to adjust their current level of assistance. However, in no instance will the payable loan portion be reduced below the minimum 10 percent payable loan level. rho lose of incose must be from an income-earning gpv_Iicantlsl whose income was used in determining the original loan assistance category. Loss of employment (voluntarily or involuntarily) is not considered a "permanent lose". For purposes of this program "permanent lose" is defined as: 1. death 2. mandatory retirement (must be 62 years of age or older) 3. permanent disability Revised 08/09/96 Program Guidelines - Page S Page 10 s v f To determine if a reduction in the loan is eligible, the household members will be asked to complete all income information and forms as required in section II - Application Processing. A determination will bra made after evaluating the household size and income using the program guideline income limits and financial assistance categories that are being used at the time the request for reduced loan payment is made. If the loss of income places the household in a lower payback category, the loan balance will be reduced (which will increase the deferred payment loan balance) according to current financial assis- tance category guidelines. When a loan reduction is granted, the applicant must sign an Extension of Note and Lien reflecting the new loan and deferred loan amounts. A waiver of these provisions can be requested if the applicant feels that their circumstances require special consideration. Section V. of Program Procedures explains how to request a waiver. VIII. MOUSING AGREEMENT Each applicant assisted through the program will sign a Rehousing Agreement with the City which outlines the responsibilities of each. The agreement establishes a date on which the applicant agrees to permanently vacate the present structure, agrees to demolition of the present dilapidated structure, agrees to occupy the replacement structure when structure is completed and ready to be inhabited, and agrees that temporary housing will terminate when structure is ready for occupancy as determined by the City of Denton. II. FINAL INSPECTION - CERTIFICATE Or OCCUPARCY The City of Denton will conduct a final inspection of all housing units made available through the program to determine that the replacement unit and all items identified in a punch list" have been corrected. This Certificate of Occupancy will serve as evidence to HUD of the City's determination that the dilapidated structure has been replaced by a decent, safe, and sanitary dwelling and that the family has been successfully relocated. r. Revised 08/02/96 Program guidelines - Page 6 Page 11 { E AppwAX I Fle*ad 001M QUALIFYING INCOME LIVIT AND RANGES FOR THE CITY OF DENTON'S FEDERALLY ASSISTED PROGRAMS INCOME RANGES AND LOAN DESCRIPTIONS 80% PAYABLE LOAN/ 40% PAYABLE LOAN 20% PAYABLE LOAN/ 10% PAYABLE LOAN 20y6 DEFERRED LOAN 60% DEFERRED LOAN 80% DEFERRED LOAN 9016 DEFERRED LOAN FAMILY Spy. AM • c30% AMI 130% AMI SIZE 80% AMI • c65% AMI 65% AMI - c50% AMI 1 $27,050 • $21,971 $21,970 - $16,901 $18,900 • $10,141 $10,140 OR BELOW $11,5800R BELOW 2 $30.900 • $25.091 $25,090 •579.301 119,300 •111,581 3 $34,800 • $28,726 $28,725 • $21,751 $21,750 • $13,051 $13,050 OR BELOW 4 $38,650 - $31,396 $31,395 • $24,151 $24,150 - $14,491 $14,490 OR BELOW 5 $41,750 - $33,931 $33,930 • $26,101 526,100 - $15,661 $15,860 OR BELOW 6 544,800.538,401 $38,400 • $28,001 $28,000 - $16,801 $16,800 OR BELOW 7 $47,900 - 538,938 $38,935 •529,951 529,950 - $17,971 $17,970 OR BELOW 8 $51,000 • $41,471 $41,470 - $31,901 $31,900 - $19,141 $19,140 OR BELOW IN THESE TWO?ART LOAN CATE00RIES THE: PAYABLE LOAN 1S BASED ON A PERCENT OF THE IOTA! COST TO REHABILITATE OR RECONSTRUCT WITH/ PAYMENTS AMORTIZED OVER 120 MONTHS (10 YEARS) AT A 3 PERCENT INTEREST RATE (APR). DEFERRED PAYMENT LOAN IS BASED ON A PERCENT OF THE TOTAL COST TO REHABILITATE OR RECONSTRUCT AND CARRIES A ZERO PERCENT INTEREST RATE. > 10 THEOEFERREDPAYMENTLOANCONTINUESUNTILTHEAPPL'CANTSATISFIESTHECONDITIONSLISTEDINTHEDEEDOFTRUSTANDPROMISSORYNOTE{EXECUTED A PRIOR TO PROJECT START DATE). THERE ARE NO MONTHLY PAYMENTS. DEFERRED PAYMENT LOANS ARE SECURED BY A LIEN ON THE PROPERTY, THE LIEN IS 1 Z FOR 120 MONTHS (10 YEARS). M X N Revised 08/02/96 Program Guidelines - Page 7 x i ~i 3 F ~p APPENDIX 2 OPTIONAL RECONSTRUCTION PROGRAM APPLICATION Your partidpatkn in the Optional Reeonst=tlon program Is voluntary, Reconstruction funds am Imited Thsrsfors, an Program does not cover oosts necessary for household b relocate during reconstruction of property Please oomplete tie fdlowing quallonnafro. This InbmbOon will help our staff In debrmining n you will be eligible for the Optional ReconaWotion Program. 1, I understand that 114 my responsibility to rorocate my household and that I am responsible for NI costs Involved to do so? Yes r No 2. 1 understand that u a result of reoonstruction, my appraised property value may Increase signilkanity from Oe amount of which It Is currently valued? Yes _ No 31 1 understand VW an Increase In my property value may cause my property taxes to increase by a significant amount I am tinanda y prepared to meet any Increase? Yes _ No 1 understand net 1 am obligated b carry hwreownses Insurance for the durabun of tte pan (14 years) that tie City a Donlon will have an my property, Yes No 6. 1 understand that my homeowner insurance pmmlum will most Ipray Increase as a result of tie reoonstnrction. I am aware that my Insurance policy must eover tie allot-reconstruction appraised value or my property, 1 om flrenclally propered lo meet INC Increase. Yes _ No 6. I understand that I mutt request Ihal my insurance company pat the Cry of Denton as a'CeMcate Hdder' on my poflW Yes No 7. 1 understand that The City*( Denton Is lrNted into amount of funds ttey can spend to reoonetnrct a property. t haw been briefed on these limits and understand that my esgibipty for the Optional Reoonstruction Program will be granted only If N Is determined that the total of all oosts involved to reoonstrud my property will be at or below the allowable program limit Yes No This APPLICATION was oompleted by on By slgning below, I am requesting that the City of Denton's Community Development Office aocept this as my application to be considered for the Optional ReoonstructIon Program. Applicant's Signature DATE Revised 08/02/96 Program Guidelines - Page 0 Page 13 S( M Y f T APPENDIX 3 CITY OF DENTON COMMUNITY DEVELOPMENT PROGRAM OPTIONAL RECONSTRUCTION PROGRAM REHOUSING AGREEMENT FOR APPLICANTS THIS AGREEMENT, made and entered into on FIELD(I 1), by and between the City of Denton, Texas, and FIELD(l) hereinafter referred to as Applicants. This agreement covers the structure occupied at the following legal address: FIELD(4) WHEREAS, The Applicant has heretofore requested and qualified for the Homeowner Rehabilitation Program with assistance from the City in order to obtain adequate, decent, safe, and sanitary housing under the City s Community Development Block Grant and HOME Program; and WHEREAS, the City has determined that rehabilitation of the Applicant's residence is not a feasible alternative; and WHEREAS, the City has determined that the Community Development Program will not provide the Applicant relocation payments and assistance necessary to accomplish the voluntary relocation of the Applicant from the substandard, unrehabable dwelling currently occupied into an adequate, safe, and sanitary replacement dwelling. NOW, THEREFORE, the City and the Applicant for and in consideration of the covenants and promises as hereinafter set forth, do agree as follows: 1. The Applicant agrees to vacate permanently the currently occupied substandard dwelling within 10 days notice by the City for the need to vacate. 2, The Applicant agrees and hereby authorizes the demolition and removal of the currently occupied dwelling and clearance by the City of the property. The Applicant further releases the City from any and all claims arising from this action. 3. The Applicant agrees to take possession and occupy the replacement dwelling when such dwelling is completed and the City determines it to be ready for occupancy. The Applicant further agrees to sign any required instruments to effect this item. Revised 08/01/96 Program Guidelines - Page 9 Page 14 L r' 4. The Applicant agrees, to provide and bear all financial costs necessary to relocate Applicant's household and furnishings without assistance from the City of Denton. 5. The maximum budget authority for the Optional Reconstruction Program is FIELD(6), which includes, but is not limited to, property title search fee, the cost to demolish the existing dilapidated structure and the cost to reconstruct an adequate, decent, safe, and sanitary replacement dwelling on the original site pot) of the dwelling vacated by the applicant. 6. Applicant agrees to the time limitations as set forth in the Optional Reconstruction Guidelines in which to be moved from the substandard property. FIELD(12) DATE FIELD(13) DATE CITY OF DENTON: BARBARA ROSS, COMMUNITY DEVELOPMENT ADMINISTRATOR NANCY BAKER, HOUSING REHABILITATION SPECIALIST Revised 08/02/96 Progra Ouidelines - Page 10 Pogo 15 f 6 i APPENDIX 4 Penton,-Texas Target Rehabilitation Neighborhoods Map Y'I Wiowf - a 777 TrD, 1- _aq~p 'u,~„„„ Ewa ~ J - r s T if Offik M-wk 4 ~a =l 1 fo.icr an. Page 16 c q Rpenda No.---_.. Agenda 'tem Oate DATE: October 15, 1996 CITY COUNCIL. REPORT FORMAT TO: Mayor and Members of the City Council FROM: Ted Benavides, City Manager SUBJ: Approval of an ordinance setting guidelines for operation of the city of Denton's Homeowner Rehabilitation Program. Eligibility criteria as set forth in the program guidelines for the purpose of authorizing expenditures in excess of $15,000 for projects meeting guidelines and criteria. REC01O[ MATIONs Staff recommends approval of this ordinance. Approval of this ordinance adopts the Homeowner Rehabilita- tion Program guidelines and authorizes contractor payments exceeding $15,000. This program allows for rehabilitation of a structure at a maximum cost of up to HUD's Federal subsidy limits for Denton. City Council will not be requsired to approve individual projects or project expendi- BACR4ROM: City of Denton ordinance 93-162, Item 10.30, Section B, states that any project or purchase that exceeds $15,000 must be approved by City Council to comply with state statutes. The maximum expenditure for a rehabilitation project will exceed this $15,000 limit. The Community Development Homeowner Rehabilitation Program Guidelines set forth eligibility criteria for expending Federal Grant funds to rehabilitate a project. These guidelines adhere to the rules and regulations as set forth by the U. S. Department of Housing and Urban Development (HUD) regarding project cost limitations and eligible income ranges. Criteria for monitoring and approving applicants and project expenditures are defined in this program's guidelines. Monitoring visits by HUD officials are made on a regular basis to ensure that Federal regulations are adhered to. Contracts are between the homeowner and the contractor. Payments to the general contractor are made following a request by the contractor based on approval by the property owner, Community Development Inspector and the Community Development Administrator. Final payments on all projects Page 1 b wT Report Format October 4, 1994 Page 2 are also contingent on approval by the City's plumbing and electrical inspectors. Co -unity Development staff estimates 12 to 15 rehabilita- tion projects will be completed during the 1996-97 budget year. Most projects will exceed $15,000. For efficiency in administering these programs, it is recommended by the City's Community Development staff that the program guidelines and expenditure limits be approved by City Council once annually rather than requesting approval of expenditures for each individual project. Approval of this ordinance is requested on an annual basis to be in compliance with State statutes. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: The Community Development staff will administer this program in compliance with Federal regulations. FISCAL IMPACT: N\A Respectfully submitted: Ted Benavides City Manager Prepared by: Nancy B r Communi Development Office Approved: f Fran Robb ns, AICP Director for Planning & Development Page 2 i i i t' F:+ f ti '1 Y r \Aoweorn.p ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOMEOWNER REHABILITATION PROGRAM AND ELIGIBILITY CRITERIA; AUTHORIZING EXPENDITURES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GUIDELINES AND CRITERIA; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing; and WHEREAS, the City of Denton participates in a Homeowner Rehabilitation Program administered by the City of Denton Community Development office and funded through a federal grant from the Department of Housing and Urban Development; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That it approves the Homeowner Rehabilitation Program Guidelines and Homeowner Rehabilitation Program Eligibility Criteria which is attached to this ordinance as Exhibit "A" and authorizes the City of Denton Community Development Office to administer this program. SECTION II. That it authorizes the expenditure of funds in excess of $15,000 by the Community Development office for projects meeting program guidelines and criteria. SECTION III. That this ordinance shall become effective immediately upon its passage. PASSED AND APPROVED this the day of , 1996. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL-FORM: HERBERT L. PROUTY, CITY ATTORNEY By. B s E, CITY OF DENTON HOMEOWNER REHABILITATION PROGRAM GUIDELINES 1996/97 Page 4 x 0 TABLE OF CONTENTS INTRODUCTION DESCRIPTION OF PROGRAM PROCEDURES I ELIGIBILITY REQUIREMENTS II APPLICATION PROCESSING III DESCRIPTION OF FINANCIAL ASSISTANCE CATEGORIES IV FEASIBILITY FOR REHABILITATION PROCESS V APPEALS PROVISIONS VI CONTRACTOR SELECTION AND MONITORING VII PAYMENTS TO CONTRACTOR VIII CONTRACTOR DEBARMENT APPENDICES APPENDIX 1 GENERAL TERMS AND CONDITIONS APPENDIX 2 - MINIMUM REHABILITATION STANDARDS APPENDIX 3 - CARRYING OUT ENERGY-SAVING REQUIREMENTS FOR SINGLE-FAMILY BUILDINGS APPENDIX 4 - SECTION 8 EXISTING HOUSING/PROGRAM APPENDIX 5 - QUALIFYING INCOME LIMITS AND RANGES FOR THE CITY OF DENTON'S FEDERALLY ASSISTED PROGRAMS APPENDIX 6 TARGET REHABILITATION NEIGHBORHOODS MAP Page 5 a d r.Lof Ff3 INTRODUCTION The City of Denton Homeowner Rehabilitation Program is designed to assist low and moderate income families in securing safe, sanitary and decent housing. This program's objective is to rehabilitate single-fain ily owner-occupied houses by making needed repairs with the first priority being to correct code violations. The Homeowner Rehabilitation Program is administered by the City of Denton's Community Development Office and is funded through a federal grant from the Department of Housing and Urban Development. The following pages contain a detailed description of the program including policies and procedures. The purpose of these guidelines is to explain to potential applicants and the citizens of Denton, the Homeowner Rehabilitation Program and it's levels of assistance available. For further Information or clarification of the guidelines, contact the Community Development Office. Community Development Office 100 West Oak Street, Suite PM Denton, Texas 76201 (817) 383-7726. Page 6 DESCRIPTION OF PROGRAM PROCEDURES i Page 7 r- DESCRIPTION OF PROGRAM PROCEDURES 1. ELIGIBILITY REQUIREMENTS- Ellgbility requirements must be met for both the applicant/household and for the structure. Eligibility for assistance is completed in two phases as described In Sedions and I.B. below. TA- A. APPLICANT/HOUSEHOLD ELIGIBILITY REQUIREMENTS ARE: 1. Must be a United States citizen or a legal resident alien. 2. Must have owned and occupied the single-family-dwelling unit for not less than five years. 3. Must hold a Fee Simple Tale to the property. a. H applicant Is purchasing their home by s "contract for deed" (or a Ilk* contract), where applicant does not gain possession of the property deed until all contract agreements have been met, applicant Is not eligible for rehabilitation assistance. The seller must provide the purchaser with a warranty deed on the property to satisfy the eligibility requirement of item I.A,3. above. b. If applicant(s) Inherited property, s/he must have the necessary legal documents drawn up and filed for record at the Denton County ClerKs Office which name applicant(s) as the sole deed holder. 4. Must meet program's income limits. a. Gross annual total household income Is 80 percent or !,slow the current matdrrwm Area Median Income (AMI) Limits. Current maximum Income limit by household size Is: NUMBER OF PEOPLE 80% of the AMI LIVING IN HOUSEHOLD (MAXIMUM INCOME LIMID 1 $27,050 2 $30,1100 3 $34,800 4 538,650 5 $41,750 6 $44,800 7 $47,900 8 or more $51,000 b. Must not have assets (total combined for all household members) in excess of $100,00). NOTE 1: The appraised value of the applicant's home Is excluded in total assets calculation. i NOTE 2: Annual Income and asset Income are calculated using the most current guidelines and rules as established In the Technical Guide for Determining Income. 5. Must be In good crodd standing with and exhibit the ability to pay creditors Including the f ving basic housing expenses: a. Home Mortgage Payment b. Loan payment (when applicant's property is collateral on loan) Program Procedures - Page 1 Page a r F c, Property Taxes (City, County, DISD) d. Homeowner's Insurance Policy premfums e. Utilities: electricaVwaterlsewagelsotld waste and gas 6. Must apply to a participating lender and be eligible for a loan to cover parl of the cost of the rehabilitation. 7. Mortgage note balance cannot exceed 75 percent of the property's appraised value as set by the Denton Central Appraisal Dfslrict (cannot exceed 50 percent of the property's appraised value to participate In the Optional Reconstruction Program), B. PROPERTY ELIGIBILITY REQUIREMENTS 1. Must be classified as a single-family -dwell Ing unit and be situated Ina Targeted Rehabilita- tion Neighborhood within the city limits of Denton (Rater to Target Rehabilitation Nelghbor- hoods Map - Appendix 6). 2. Must exhibit building code deficiencies that make the structure unsafe or unsanitary. 3. Must not have existing property code violations (such as high weeds, trash, debris, junk vehicles, etc). Any liens placed on properifes for correcting previous code violations must be paid In full by the time application processing occurs. 4. Must be serviced by a City-approved water supply, sanitary sewer and electrical system. 5. Must meet all of the City of Denton's Land Development Codes. 6. Must be feasible for rehabilitation as defined In Section IV of the Program Procedures. 7. Must be covered by an approved homeowner's Insurance policy. NOTE: H an appdcant's property Is not currently Insurable because of Its present condition, the applicant must obtain a homeowner's Insurance policy quote (from any reputable Insurance agency). The quote should be based on the after-rehabilhion structural status. Applicant should Inform agent that the structure will be rehabilitated to meet all current Building, Electrical, Plumbing and Fin-Safety codes. Applicant must provide this quote to the CommUnlty Dewloument OHke and Sign a NOTICE OF INTENT AND AGREEMENT TO OBTAIN A HOMEOWNER INSURANCE POLICY to sstitfy eligibility required in hem 1.B.7. 8. A property that has been previously rehabilitated with Federal or State grant funds Is subject to waitfno reriod and dollar limitations when being considered for additional rehabilitation. These limitations are: IF THE TOTAL COST THE WAITING THE MAXIMUM AMT OF OF PREVIOUS REHAB PERIOD MUST FUNDS ELIGIBLE FOR WAS IN THE RANGE OF BE AT LEAST ADDITIONAL REHAB $11,999 or below 7 years 80"h maximum allowed $12,000 - $16,999 8 years 70% maximum allowed $17,000 - $19,999 10 years 60% maximum allowed $20,000 or above 15 years 50% maximum allowed Program Procedures - Page 2 Page 9 r f t 1 Y 1 II. APPLICATION PROCESSING A. To be placed on the waiting list, applicants must meet the following guidelines: 1. Households total gross annual Income does not exceed current program Iroome limits. 2. Owner Is the occupant of a single-family dwelling unit for not foss than three years. 3. Property Is located In a Target Rehabilitation Neighborhood (Appendix 6). 4. Applicant must complete a Wahine List Aoolicatlon Form and attach a copy of property deed. (Wafting List Application Forms are available at the Community Development Office, 100 West Oak Street, Sulfa 208, Denton, Texas, 76201, (817) 383.7726.) B. A completed waiting list application form Is assigned the next available number on the waiting list In order by time and date the completed application is received by the Community Development Office. C. When applicant reaches the top of the waiting list, he/she will be notified to complete the application process. The Community Development Office will mail a letter of notice to apply for assistance. This notice will give a deadline date by which the applicant must schedule an appointment with the Community Development Office to complete the application process. Any applicant who does not contact the Community Development office by the deadline date will be removed from the waiting list. The letter of notice to apply for assistance requests applicant to provide the following hems: e Copy of Deed or Warranty Deed for the property to be rehabithated (applicant must be deed holder) e Namelmailing address of your mortgage company (if you have a mortgage payment) e Namatmailing address of your Homeowner Insurance policy with 'oek!' reoelot or canceled check e Current year's 'paid' property Tax receipts from DISD, Phy and County tax offices. e Most current Notice of Aooraised Value from the Denton Central Appraisal District e Current year's Income Tax Return with W2's for each household member who filed tax returns e Social Security number(s) for household members who receive Social Security benefits e Most current Income statement (if you receive Social Security benefits) e Paycheck stubs for last four weeks for each ermloygd household member e Employers name/address for each am loyed household member e Names and addresses of rotuement Income or any other Income sources (ALL INCOME SOURCES MUST BE DISCLOSED-RETIREMENT, RENTAL/HAP INCOME, AFDC, FOOD STAMPS, ETC.) e Divorce decree if you receive chi Woth er suppo rt from a divorce or h you were awarded deed to your property through a divorce e Names/addresses/aocouni numbers of all banks, credit unions, savings banks, IRA accounts, etc, for all household members who have any of these types of accounts e Bills for the last six months from Lone Star Gas and City lhilhies. (If you don't have last six months bills, Lone Star Gas OR City of Denton Ufil's will mail you a summary. Please make sure the summary has your current balance stated,) D. Applicant must provide all information requested in 11,0. above that applies to his/her household and oomplete all required verification forms In the application packet. All information will be verified by Community Development staff. if any Information is found to have been intentionally Program Procedures - Page 3 Page 10 r a F falsified, the application will be rejected and the applicant will not be allowed to reapply to thls program. E. Community Development staff will calculate the gross annual household income and determine the percent of Income spent for housing expenses. F. Community Development staff will notify applicant of the financial assistance category he/she Is eligible for under the program guidelines. Applicant will be notified that final eligibility for assistance Is determined upon completion of the feasibility for rehabilitation process. III. DESCRIPTION OF FINANCIAL ASSISTANCE CATEGORIES A. Applicant must apply to a participating lender for a ban. Applicant will be required to accept the maximum loan allowed them by the lender to oontnbute toward the rehabilitation of the property. Applicants denied a ban from a participating lender due to unacceptable credit history will be Ineligible for assistance through the City of Demon's Homeowner Rehabilitation Program. 1. The Community Development Office may assist applicant with buy-down of lender's Interest rate (down to, but not less than, 6 percent APR). 2. Interest rate buy-downs will be carried as a deferred loan by the City of Denton with a term equal to the deferred construction loan. B. The City of Denton will fund the remaining project cost (total project cost, less the amount loaned to applicant from lending Institution). This pad of the project cost has four financial assistance categories for those who quality for the Homeowner Rehabilitation Program. These categories are based on the Qualifying Income Limits and Ranges for the City of Denton's Federaliv Assisted Programs (see appendix $ to those guidelines for current income ',nit ranges). A description of the financial assistance categories and their requirements are: 1. 80 Percent Rehabilitation Loan / 20 Percent Deferred Pa mant Loan: Applicants whose gross annual household Income falls above 65 percent up to 80 percent of the area median family income limits will qualify for this two-part loan; a. a 3' Percent Interest ban with the loan aneunt being based on 80 percent of the total project cost amortized over 120 months. The lien will not be released on this part of the loan until all 120 payments are received In full by the City of Denton; and b. a deferred payment ban with the loan amount being based on 20 percent of the total project cost. A detalled description of the deferred payment loan is found below after section VII.C. 2. 40 Percent Rehabilitation Loan /_60 Percent Deferred Payment Loan: Applicants whose gross annual household income falls above 50 percent up to 65 percent of the area median family Income limits will quality for this two-part ban; a. a 3~ercerd Interest ban with the loan amount being based on 40 percent of the total project cost amortized over 120 months. The lien will not be r:leased on this part of the ban until all 120 payments are received in full by the City of Denton; and Program Procedures - Page 4 Page 11 F b. a deferred payment ban with the loan amount being based on 60 percent of the total project cost. A detailed description of the deferred payment loan is found below after sedan VII,C. 3. 20 Percent Rehabilitation Loan / 80 Percent Deferred Payment Loan Applicants whose gross annual household Income falls above 30 percent up to 50 percent of the area median family Income limits will quality for this two-part ban; a. a 3 percent Interest ban with the loan amount being based on 20 percent of the total project cost amortized over 120 months. The lien will not be released on this part of the loan until all 120 payments are received In full by the City of Denton; and b. a deferred oavmenl ben with the ban amount being based on 80 percent of the total project cost. A detailed description of the deferred payment loan Is found below after section VII.C. 4. 10 Percent Rehabilitation Loan / 90 Percent Deferred Payment Loan Applicants whose gross annual household income falls at or below 30 percent of the area median family Income limits will qualify for this two-part loan; a. a 3 percent Interest ban with the loan amount being based on 10 percent of the total project cost amortized over 120 months. The lien will not be released on this part of the ban until all 120 payments are received In full by the City of Denton; and b. a deferred payment ban with the loan amount being based on 90 percent of the total project cost. A detailed descript;on of the deferred payment ban is found below after section VII.C. 'DESCRIPTION OF A DEFERRED PAYMENT LOAN A deferred payment ban shall carry 0 percent Interest and continue until the applicant satisfies the conditions listed in the promissory rote executed prior to project start date. There are no monthly reyments. Deferred payment loans are secured by a lien on th-3 property. For each month the applicant lives on the property, a monthly payment amount established in a promissory note will be forgiven. 9 the property Is sold or transferred before the lien period expires, the applicant is credited for every month of residency. The credit Is subtracted from the total loan amount to determine the unforglven loan balance. The unforgiven valance Is owed and becomes due to the Community Development Program upon sale or rental of the property. Amounts received are used as program income. The City of Denton will be in the first lien position on all rehabilitated dwellings. However, in situations where first lien position Is not feasible, the City will accept a second lien position subject to the review and approval of the Community Development Administrator. The lien will not be released unless the following conditions are met: 1. The homeapplicant must reside in the unit for the full period of the lien. 2. The property must be maintained to meet City code requirements. 3. Mortgage payments must be met on a timely basis. 4. Homeapplicant must provide documentation of adequate homeowner's insurance, Including casualty and fire coverage, and the City must be listed on the Certificate of Insurance to be notified in case of policy cancellation, Program Procedures - Page 5 Page 12 D F } t NOTE: Contracts require the applicant to, upon completion of the rehabilita- tion, maintain and/or purchase, for the full length of time which the City of Denton will have a lien on property, an Insurance policy that: covers all improvements resulting from the rehabilitation for their full Insurable value; provides fire and extended coverage, including windstorm coverage; provides flood insurance at any tim a F -*party is In a flood hazard area. Applicant agross to comply at all times with the requir* rents of the 80 percent coinsurance clause; end keep any buildings occupied as required by the Insurance policy. 5. If within the period of the lien the applicant defaults on their deferred payment loan or the payable ban, the lien will be called due in full and fore-closure proceedings may be Initiated, The City will make every effort to work with the applicant to avoid foreclosure and will examina each situation on a case by case basis. E. Reoavment Policy for Financial Assistance: The applicant must agree to have a lien placed on their property until they have satisfied the requirements of the promissory note. The lien will remain until the loan has been paid in full. In the event of death of the loan recipient, the balance due according to the Promissory Note must be paid by whomever becomes the legal owner, if for any reason the loan recipient decides to sell or rent the property before the lien's terms are all met, the rate's balance will become due at the time of the sale or upon rental. F. Liens will remain in effect until the grantee has met all requirements as specified in the promissory note. In the event of the sale of the property, any unpaid balance of the ban and any unforgiven portion of the deferred payment ban will become due Immediately. If, in the event of the death of the grantee, a family member who meets the income eligibility requirements takes up residency In the property, the loan will continue as stated In the original promissory note. Q. M, after the loan payback begins, a household experiences a permanent, substantial loss of household Income, a applicant can request a review to adjust their current level of assistance. However, in no Instance will the payable loan portion be reduced below the minlmum 10 percent payable ban level. TM bu of income must be from an Income eamin4 applksrrtfsl whose income was used in dets rminina the oriolnal loan asslstancs cateoorv. Loss of employment (voluntarily or involunianly) is rat oonsidered a 'permanent loss'. For purposes of this program 'permanent loss' Is defined as: 1. death 2. mandatory retirement (must be 62 years of age or older) 3, permanent disability To determine if a reduction in the loan Is eligible, the household members will be asked to complete all income Information and forms as required in Section II - Application Processing. A determination will be made after evaluating the household size and income using the program guideline income limits and financial assistance categories that are being used at the time the request for reduced loan payment is made. If the loss of Income places the household in a lower payback category, the loan balance will be reduced (which will Increase the deferred payment loan balance) according to current financial assistance category guidelines. When a ban reduction Is granted, the applicant must sign an Extension of Note and Lien reflecting the new loan and deferred ban amounts. A waiver of these provisions can be requested if the applicant feels that their circumstances require special consideration. Section V. of Program Procedures explains how to request a waiver. Program Procedures - Page 6 Page 13 1 r IV. FEASIBILITY FOR REHABILITATION PROCESS A. A decision as to whether a structure is feasible for rehabilitation Is made after a complete assessment of the following factors, 1. Completion of a detailed inspection of the property by Community Development staff Is conducted. This Inspection includes completing a list of all deficiencies which must be corrected In order to bring the structure up to minimum program standards (compliance with HUD's Section 8 Minimum Housing Quality Standards (Appendix 21 and City of Denton codes. 2. Determine 0 the rehabilitation cost will be affected by: a property being located In a designated 100-year fioodplain, a need to abate possible presence of lead-based paint, possible historical resioration requirements or can rehab reduce nose levels N property Is in a high noise area. NOTE: The t'loodplaln Management regulations limit the total cost of all non-code repairs for any structure located In a designated 100-year fbodplain to not exceed 50 percent of a property's (stricture only) pre-rehabilitation appraised value as set by the Denton Central Appraisal District. 3. Determine d the framework and foundation of a structure are stable, or can be made stable through rehabilitation. 4. Lead-based paint hazard reduction techniques will be used when lead-based paint exceeds HUD's acceptable limits for lead content In existing paint. The limits for lead content exceed HUD's limits when lead content exceeds 1 mg per cW (one milligram per centimeter squared), or 5000 ppm (parts per million). The reduction techniques used by this program are described and found in the U. S. Department of Housing 3 Urban Development's publication, Guidelines For The Evaluation and Control Of Lead-Based Paint Hazards In oust , issued June, 1995. 5. Is a room addition(s) needed to relieve serious overcrowding? NOTE: Rehabilitation of a structure will never net fewer bedrooms than the number of bedrooms a famiiy has before rehabilitation. Room additions and Improvements to relieve serious overcrowding may be eligible and require the approval of the Community Development Administrator. The City will follow the standards consistent with the Housing Quality Standards when considering the number of bedrooms needed to avoid overcrowding. They are: jot Occupants in Household t of Bedrooms Minirnum Maximum 2 1 4 3 3 6 4 6 8 B. Using all information obtained in items III.A.1.5. above, a cost estimate and structural evaluation will be completed. The level of monetary assistance will be assessed. Moderate Rehabilitation will be any rehabilitation between $5,000 - $24,999 while Substantial Rehabilitation is $25,000 to below Program Maximum Limits, A project whh a cost estimate above Program Maximum Program Procedures - Page 7 Page 14 i R A A r Limits Is not eligible for rehabilitation assistance. Applicant may be referred to Optional Recon- struction Program. C. PROGRAM MAXIMUM LIMITS FOR REHABILITATION A rehabilitation that cannot meet all of the following limit tests Is considered cost prohibitive or not feasible for rehabilitation. 1. Rehabllitation will not exceed $40 Per square foot of total living space (using after rehabilitation square footage). 2. Rehabilitation will not exceed the current Maximum Home Subsidy Lfmhs for Denton as set by HUD. 3. The after rehabilitation appraised property value l~us all costs expended to complete the project (including the bank loan portion) will not exceed the current Single Family Mortgage Limit for Denton as established by HUD. D. PROGRAM MINIMUM LIMITS FOR REHABILITATION A structure needing less than $5000 of repairs Is not eligible for rehabilitation assistance. An appficent r,ho feels that he/she has been unjustly denied rehabilitation assistance under the Citys Homeowner Rehabilitation Program should follow the appeals procedure outlined in Section V. V. APPEALS PROVISIONS: A. Mast for Walver: The City of Denton's Homeowner Rehabilitation Program has been developed to adhere to a set of guidelines In order to assure proper administration and management of the Homeowner Reh*lltation Program. In the event that an applicant feels that hislher circumstances require special consideration, he/she can request, In writing, a waiver from the usual requirements. AN requests should specify the requlrement(s) to be considered for waiver and state the applicant's reason(s) or special circumstances why he/she believes a waiver should be approved. Requests will be reviewed by the Community Development Deve Administrator on a case by case basis. Applicant will be ratified in writing of the Community lopment office's final decision. B. Aaceals Procedure: Applicants who have been determined by the Community Development Administrator to be Ineligible for rehabilitation, may appeal this decision to the Director of Planning and Development Department. A written appeal must be submitted. The Director of the Planning and Development Department shall Issue a written response within fifteen days of receiving the request. VI. CONTAACTOA SELECTION AND MONITORING All housing rehabilitation reciplents are responsible for finding a contractor who will develop a proposal to make the necessary repairs to their home. Your contractor's proposal must be submitted to the Community Development office within 30 days from the date you receive the work order write-up prepared by the Community Development Housing Inspector. Contact any reputable and experienced contractor and request a bid for the required work. Program Procedures . Page 8 Page 15 R 6 F s IF YOU HAVE ANY TROUBLE FINDING A CONTRACTOR, contact any of the following places for assistance: e Your local Better Business Bureau. • Any friends or nelghbors who have had remodeling done to their properties. • Chamber of Commerce • Community Development Office Contractor's List When a contractor comes to look at your home you should: • Show hirrVher the mandatory work items that have been Identified by the Community Development Housing Inspector. e Advise him/her that the bid proposal must be returned to you or the Community Development office for submission to the rehabilitation program on or before the due date. DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR. Bring the contractor's bid proposal to the Community Development office at 100 West Oak Street, Suite 208, where you made your original application. The Community Development Housing Rehabilitation Inspector or Housing Rehabilitation Specialist will review the proposal to verify that: 1. The contractor Is licensed and has all City-required insurance coverages. 2. All required improvements have been Included in the bid. 3. The proposed work Is in oonformence with the program's General Specifications. 4. All proposed rehabilitation ousts are reasonable. 5. The oontractor you have chosen has rat been disqualified (debarred) by any local, state or federal government agency. The bid proposals that are submitted by the applicant will be reviewed by the Communiy Development Housing Rehabilitation inspector to determine if the total bid price is reasonable and under the maximum allowable amount. THE CITY OF DENTON AND THE Applicant RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS. If the bid proposal selected by the applicant is approved by the Community Development Administralor, then the Community Development staff shall proceed with the review of all other forms submitted by the contractor. Any contractor whose name appears on the mom current HUD or City of Denton Debarred Contractor's list will not be eligible to particlpate in this program. References will be checked and claims of substandard workmanship will be cause to declare a oontractor ineligible. The contractor must also submit all required proof of Insurance forms and bonds (H applicable). Failure to submit these will result in rejection of the bid proposal. Once the contractor has been selected and approved, a contract agreement must be signed. Before the contractor can start work, the applicant nwst issue a notice to proceed. The contractor's work will be monitored by the applicant, the Community Development staff and the City of Denton building code inspector. If the applicant considers any work done by the contractor to be unsatisfactory or incomplete, the applicant should advise the contractor of the discrepancy and ask that it be corroded. in the event a dispute exists between the applicant and the contractor with respect to the rehabilitation work the City shall tako appropriate action In accordance with the provisions of the construction contract to assure that the applicant Is satisfied before making any Program Procedures - Page 9 Page 16 t+ r payment to the contractor. In the event a dispute cannot be resolved, the Director of Planning and Development shall consider all pertinent fads and shall decide an appropiate course of action to resolve the dispute. Aoceotance of Work 1. Final Inspection - In order for the contractor to close cwt a rehabilitation job, a final Inspection shall be made by the City of Denton building code inspector, the Community Development staff, and the applicant. 0 the final inspection results in no additional work or no specified corrections, the applicant shall sign the contractor's release form which states that all work has been completed to their (applicant's) satisfaction. The building code inspector shall sign a final Inspection form to oonOrm the same. At this time, the contractor Is required to submit to the Community Development office oopias of all warranties and releases of liens from subcontractors and suppliers. Community Development will not authorize payment to the contractor until these documents are property completed and submitted. Community Development staff will make copies of warranties and other documentation. The applicant will receive original warranty and guarantee documents. The Community Development office will retain copies of these documents for the file. 2. Warranty of Work • As stated in the rehabilitation contract, the contractor shall guarantee the work performed for a period of at least one year from the date of final acceptance. The contractor will return In thirty (30) days and ask the applicant If any additional repairs are necessary. Any deficiencies or necessary repairs to specified work will be completed at this time. If no repairs are needed, the oontracor will request that the applicant release the contingency payment. VII. PAYMENT TO CONTRACTOR The oontractor shall receive payment, minus contingency amount, for all completed contracts whNn 15 working days after final inspection approval. The contingency amount equals 10 percent of the total contract amount and will be withheld for thirty (30) days. After thirty days, if no additional or warranty work remains, the contractor must request from applicant an approval to release v,ithheld contingency funds. A 45 percent interim payment will be made available to the contractor upon applicant and Inspector approval when 50 percent of the contract work has been completed. An 'All Bills Paid' affidavit and release of lien from all subcontractors and suppliers must be submitted by the contractor to the Community Development office before payment can be released to oontracor. All electrical, plumbing, mechanical, roofing permits and termite Inspection must also be submitted to the Community Development office prior to releasing contingency payment to the contractor. Vill. CONTRACTOR DEBARMENT A contractor will be declared Ineligible to participate In projects funded by the City of Denton's Homeowner Rehabilitation Program for one of more of the following causes: 1. Failure to complete a project within the prescribed contract period 2. Failure to oomplete warranty repairs within a reasonable time period. 3. Failure to use licensed plumbing and electrical subcontractors. Program Procedures - Page 10 Page 17 d D , 4. Failure loobtaln Cityreaulred insurance, Le., general contractors liability, automobile liabirdy and builder's risk (if applicable). 5. Failure to complete work in accordance with program specifications and/or accepted standards of workmanship. 6. Failure to pay all subcontractors working on the project appropriately and/or submit affidavits of payment signed by all subcontractors. 7. Failure to obtain proper permits for work in progress. 8. Failure to treat applicants with respell and courtesy. Contractors will be noted of their proposed debarment and will be afforded the opportunity to comment or appeal the action. All appeals must be made in writing to the Community Development Office at least 15 days after the date of the notification letter. Contractors debarred from the Homeowner Rehabilitation Program may no longer contact applicants receiving CDBO or HOME grant funds with the intent of providing a bid for a project. Program Procedures • Page 11 Page 18 i' s r APPENDICES APPENDIX 1 GENERAL TERMS AND CONDITIONS APPENDIX 2 - MINIMUM REHABILITATION STANDARDS APPENDIX 3 - CARRYING OUT ENERGY-SAVING REQUIREMENTS FOR SINGLE-FAMILY BUILDINGS APPENDIX 4 - SECTION 8 EXISTING HOUSING/PROGRAM APPENDIX 5 - QUALIFYING INCOME LIMITS AND RANGES FOR THF. CITY OF DENTON'S FEDERALLY ASSISTED PROGRAMS APPENDIX 6 - TARGET REHABILITATION NEIGHBORHOODS MAP Page 19 1 0 F GENERAL TERMS AND CONDITIONS APPENDIX t 1. Applicant agrees to comply with all HUD requirements with respect to Title VI of the Civil Rights Act of 1964, to not discriminate upon the basis of race, color, creed or national origin in the sale, lease, rental, or use of occupancy of the subject property. 2. Applicant agrees to not award any contract for rehabilhatton work to be paid for In whole or in part with the proceeds of the grant to any contractor who, at the time, is ineligible under the provisions of any applicable regulations Issued by the Secretary of Labor, United States Department of Labor, the Department of Housing and Urban Development, or the Community Development Office to receive an award of such contract. 3. Applicant agrees not to pay any bonus, commission or fee for the purpose of obtaining the Community Development staff's approval of the grant application or any other approval of concurrence required by the Homeowner Rehabilitation Program. 4. Applicant will continue to occupy the premises during the rehabilitation; but he will cooperate with the contractor In a reasonable manner. 5. Applicant agrees that existing house utility services will be made available to the contractor without charge as follows; electricity, gas, water and telephone (local calls only). 6. Applicant agrees that the City shall be the agent for the applicant and as such agent shall hold the funds made available to the applicant for the rehabilitation grant for the purpose of the disbursement thereof to the contractor. 7. Applicant agrees that it is his We responsibility to see that the contractor completes the worts specked in his contract to the applicant's satisfaction and that the City of Denton has no responsibility for any defects, faulty work or incomplete wodc by the contractor. The applicant further agrees that the City has no liability for warranty of any of the workmanship or materials furnished by the contractor under the contract. The applicant further agrees that latent or hidden conditions in the property which were not included In the original inspection and work write-up of the City are not the responsibility of the contractor nor of the City, but remain the responsbllity of i the applicant. S. As part of the consideration for providing the funds to rehabilitate property as described herein, the applicant agrees to maintain and keep the property in good repair after the completion of the work to be performed by contractor, taking Into consideration the ability of the applicant to do so. g. Applicant shall Issue a written Notice to Proceed within thirty (30) days from the date of acceptance of the contractors bid and proposal. If the Notice to Proceed Is not received by the contractor within this thirty (30) day period, the contractor has the option of withdrawing his bid and proposal. If the contractor chooses to do this a written notice must be delivered to the applicant with a copy to the City. The contractor shall not begin the work to be performed until receipt of written Notice to Proceed from the applicant after which the contractor shall begin the work within ten (10) calendar days of the date of said Notice and shall complete said work within sixty (60) days or the number of days stated in the Rehabilitation contract. 10. The contractor shall not assign the contract without written consent of the applicant and the City and/or its agent. 11. it Is agreed between the applicant and the contractor that damages due to delay are impossible to determine and that in the event the contractor does not complete the work required under the contract within the specified time, the contractor shall be liable for and shall pay to the City as APPENDIX 1 - General Terms and Conditions - Page 1 Page 20 b F liquidated damages the sum of 1 percent of the total contract amount or $55, whichever Is greatest, for each calendar day of delay from the date sVpulaled for completion In the Rehabilitation Contract until such work Is satisfactorily completed and accepted, 12. The contractor shall not be charged with liquidated damages for any delays in the completion of work due to the following: A. Any acts of the government; Including controls or restrictions upon or requisitioning of materials, equipment, tools or labor by reason of war, National Defense or any other national emergency. B. Any acts of the applicant, 0. Causes not reasonably foreseeable by the parties to this contract at the time of the execution of the contract which are beyond the control and without the fault or negligence of the contractor, including but not limited to acts of God or of the public enemy; ads of another contractor In the performance of some other contract with the applicant, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoesand weather of unusual severity such as hurricanes, tornadoes, etc. D. Any delay of the subcontractor occasioned by any of the causes specified in Subparagraphs (A) (B) and (C) above, provided that the contractor promptly (within 10 days) notifies the Applicant in writing of the cause of the delay. If the facts show the delay to be properly excusable, the applicant shall extend the contract time by a period commensurate with the period of excusable delay. 13. The contractor shall not be held responsible for preexisting violations of law including but not restricted to zoning or building code regulations at the property listed in the contract. Before beginning work, the contractor shall examine the work write-up for compliance with the applicable ordinance and codes for the new or replaced work and shall immediately report any discrepancy to the applicant. Where the requirements of the work write-up fail to comply with such applicable ordinances or codes for the new or replaced work, the applicant and the City will adjust the contract by change order to conform to such ordinances or code and make appropriate adjustment in the contract price unless waivers in writing covering the difference have been granted by the proper authority. 14. The contractor shall comply with all non-ftedminatlon clauses included In the contract; noncompliance will result In termination of the contract. 15. Bids or proposals wilt be submitted at the blddees risk and the Cityor the applicant reserve the righl to reject any or all bids or proposals. 16. Subcontractors shall be bound by the terms and conditions of the contract, Insofar as it applies to their work This shall not relieve the general contractor from the lull responsbilrly to the applicant for the completion of all work to be executed under this agreement and he shall not be released from this responsibility by any subcontractural agreement he may make with others. 17. When adjacent property Is affected -u endangered by any work done under this contract, it shall be the responsibility of the contractor to take whatever steps are necessary for the protection of the adjacent property and to notify the applicant thereof of such hazards. 18. Repairs shall be made to all surfaces damaged by the contractor resulting from his work under this contract at no additional cost to the applicant. Where 'repair of existing work' is called for by the contract, the feature shall be placed In 'equal to new condition' either by patching or replacement. APPENDIX 1 General Terms and Conditions - Page 2 Page 21 0 F Aft damaged, loose or rotted parts shall be removed and replaced and the finished work shall match adjacent work in design and dimension. 19. Alter the final Inspection and acceptance by the applicant of all work under the contract Including cleanup, the contractor shall submit to the applicant for approval his requisition for payment. When the required warranties and the release of liens have been executed by the contractor, the final payment minus a 10 percent contingency will be made which will Include any amounts remaining due under the contract as adjusted In accordance with approved change orders and subject to withholding of any amounts due the appilcant for 'liquidated damages' as may be necessary to protect the applicant against any claim arising from the contractor's operations under the contract. Payments will be made within 10 days of formal requisition for payment. Only one partial payment may be made when 50 percent of the work has been completed. 20. A Rehabilitation grant may be made only to cover the cost necessary to bring the dwelling into conformance with Section 8, Existing Housing Quality Standards. The two categories of repairs listed below are to be included as priority items: A. Reoulred Rna : Code violations which create hazardous conditions in regard to safety or health will generally Involve the basic heating, plumbing or electrical systems. B. Recommended Repairs: Code corrections or preventive maintenance efforts which should be undertaken to avoid more oostly future action. (1) Heating, alr conditioning, plumbing and electrical Improvements (2) Weatherization (3) Exterior work such as roofing, sidl*ng, painting, step and porch repair and retaining (4) interior work such as renovation and repair of existing kitchen and bath facilities. 21. "le homes are not eligible for rehabilitation assistance, 22. The Denton County Appraisal District automatically reappraises any house where a building permit is Issued. The applicant should be aware of this fact, M the home is reappraised, yearly property taxes may also increase. 23. Change orders may be made to cover an hem of work which cannot be determined until sometime during the course of the rehabilitation work The Community Development staff shall not consider a change order proposed by a bidder that Is not called for in the contract document prepared by the Community Development Office, Change orders wilt be considered as follows: A. Change orders are used to add work necessary to correct Incipient items that have been found to be defective after work is In progress but were not anticipated at the time the contract was executed. B. Change order requests will be limited to only those hems that must be corrected to meet Section 8 standards and/or city code requirements. No change orders for recommended or general property improvements will be approved. C. The change order amount is limited to a maximum of 10 percent of the iota[ contract amount. If R Is necessary to request a change order to make required repairs aril the contract is already at the program's maximum allowable expenditure amount, a work hem of less priority will be deleted from the bid proposal In order to compensate for the added amount. However, if there are no work items of less priority to delete from the bid proposal, APPENDIX 1 General Terms and Conditions - Page 3 Page 22 N F V the project's maximum amount must be approved by the Community Development Admin. Istralor. D. Change orders will be used whro -t is necessary to delete work from a contract for any reason. When items are deleted -,om the contract, they shall be at the:r previously bid amount. When hems are deleted, tut do not have specific costs, In such cases the contract shall be reduced by negotiating the cost at prevailing rates. E. All change orders shall be executed by the applicant, contractor, and a member of the Community Development staff prior to work being completed. F. Except for the purpose of affording protection against any emergency endangering fife or r property, the Contractor shall make no change in the work or rehabilitation, provide any extra or additional work or supply additional labor, services or materials beyond that actually required for the execution of the contract, G. AM change orde, requests must be submitted by the contractor, signed by the applicant and approved by the Community Development Administrator. No claim for an adjustment of the contract price by the contractor or applicant will be valid unless this Is done. H. The approval of a change order shall constitute authorization by the applicant and Community Development Administrator to change the grant amount equal to the cost of the work added or deleted. 1. It may be necessary to change the time of compl->tion due to the addition of certaln work hems or delays that are beyond the contractor's control. J. If the contractor feels that any of the limitations listed above will resuh In the incomplete rehabilitation of the structure as specified in the contract, he may appeal the limitation to the Executive Director of Planning and Community Devekpmeni. 24• If the work completed Is not In accordance with the construction contract, a member of the Community Development staff shall advise the applicant of the non-compiianoo who then shall obtain appropriate action from the contractor. No payment shall be prooessad on a construction contract until a contractor has satisfactorily completed all necessary corrective action. 25. The applicant shall be able to select the color and style of certain materials (i.e. carpet, floor covering, paneling, paint, etc.). No more than one selection of carpet and vinyl may ba made. No more than two Interior paint chokes and two exterior paint choices may be made (main color and trim). 26• The contract warrants that elf materials, fixtures, and equipment furnished by the amlractor and its subcontractors shall be new, of good We and that the work will be done In a neat and workmanlike manner. Neither the final payment nor any provision in the contract nor partial or entire use or occupancy of the premises by the applicant shall constitute an acceptarce of work not done In accordance with the Contract or relieve the Contractor of liability In respect to any express warranties or responsibility for faulty materials or workmanship. The contractor shall promptly remedy any defect in the work and pay for any damage to other work resulting therefrom which may N)pear whhln a period of one year from the date of final acceptance of the work unless a longer period Is specified. The applicant will give notice of observed defects with reasonable promptness. 27, Interest of certain federal and other officials: APPENDIX 1 General Terms and Conditions • Page 4 Page 23 r ti t A. No member or Delegate to the Congress of the United states and no Resident Commis. sloner and no federal employee shall be admitted to any share or pall of this contract or to any benefit to arise from same, B• No member of the governing body of the City and no other public off iclat of or within the City or County who a xerclses any functions or responsibilities In connection with the administra• tion of the Community Developmenl Programs and no other employee of the Department of Planning and Community Development who exercises any such functions or responsoli. ties shall have any Interest, dired or Indirect In rehabilitation proceeds which is Incompatible or in conflict with the discharge or fulfillment of his functions and responsibIlitles in connection with the carrying out of the Homeowner Rehabilitation Program The ient?th of time this exclusion shall be in Mod Is one year following the ending of term of ,,,dloe and shall be binding upon, tout not limited to, all of the individuals and agencies herein I APPENDIX 1 General Terms and Conditions • Page 5 Page 24 F MINIMUM REHABILITATION STANDARDS APPENDIX 2 Hoofs: Roofs should not leak and have no evidence of rotted decking, fascia or soffit. Any roof with two or more layers of roofing must be stripped to the decking. If h Is determined a new roof is necessary the decking must be checked for broken or rotted eeddrig and shall be repaired or replaced as needed. Where new decking Is required the material shall be one-half inch plywood or one-half [rich waferboard to be used with H clips between sheets. All roofs that all stripped shall be replaced with new 30 pound fell paper, the proper flashing and metal drip edge with 240 pound shingles. Any roof with less than a 4/12 pitch shall be covered with roiled roofing, with at least 12 Inches of lap, lf installation of rof ed roofing Is not sufficient to promote proper run off roof will be rebuilt. Siding end Trim: All exterior siding and trim shall be free of holes, cracks or rotted material which might admit moisture Into walls. New siding may be applied only If the cost of new siding and installation is comparable to the repair and painting costs of the existing siding. Windows: All windows and hardware shall operate satisfactorily. Cracked or broken windows shall be replaced. Window glazing shall be weather tight and windows shall be weather stripped so as not to allow entry of air and water around the glass, sashes or erindow casings. All windows shall have screens and working locks. Drainage: The grade of concrete or din rh6.'d drakn at feast five (5) feel away from foundation walls. Site Improvements: All replaced oonorete s..~aces are to be level with the widths to match the existing surfaces. All slaps both concrete or wood that pose a threat to the oompants shall be repaired or, lf necessary, replaced with treated material or concrete. Foun ti,'Alons and Piers: Skirting shall be six (6) Inches underground level. If it Is necessary to Install skirting, new 22 or 2.1 gauge skirting shall be used. Kitchens: ;\rlchens shall have a specific area which contains a slnk with hot and coil running water, counter work space, storage space for food and space for storage of cooking utensils. Stain: All stairs shall prc;~He for the safety of ascent and descent. All treads and risers should show no evidence of breakage or have evidence of excessive wear. All stairs shall be equipped with handrails. Utility Areas: Gas or oil fired v.,ater healers or furnaces shall not be located In the bathrooms or bedrooms. In addition to all plumbing and electrical codes, water heaters, air conditioners, end furnaces shall be enclosed with a sealed door and adequate upper and lower combustion air. Ail washer and dryer hookups must meet City Code. Structural System: The wood, masonry or steel components shall be In serviceable condition for the expected useful life of the rehabilitated building, Structural members which are In seriously deteriorated condition shall be replaced. Sagging, non-level floors will be ralsed b stabilized as level as possible without causing Interior damage. Termite Inspection Is required and treatment shall be done if evidence of active infestations exist, A certified pest control company will carry out the treatment end present documents of proof and warranty. 1 I APPENDIX 2 - Minimum Rehabilitation Standards - Page 1 Page 25 r ff E S Electrical National System: the Natio All replacement of existing wiring and equip-cent shall be done in conformance with Electric Code and the City of Denton Code. Any potential source of eledrical hazard or ignition of combustible material shall be corrected. GFI outlets shall be used in bathrooms, kitchen, garage, and exterior receptacles. Additional outlets shall be added to eliminate extension cords and, at the request of the city inspector, to rreet City Codes. Plumbing: The plumbing system shall operate free of fouling and clogging, and not have cross-conned ions which permit contamination of the water supply or back siphonage between fixtures. All sinks, lavatories, water closets, water heater, and other plumbing fixtures shall have accessible cutoff valves. AN fixtures shall have P-traps, necessary vents and be property connected to a public or prfvale sewage disposal system. Aft sewer lines shall have accessible cleanouts. All water heaters shall be Installed with double wall vent stack, a pop-off valve, and overflow to the exterior of the structure. Mechanical Equipment: All gas fired healing units must be vented with double wall pipe and proper upper and lower combustion air. Unit shall not be Installed in a living area such as bedrooms or under stairways. Rigid gas pipe must be used to supply healing units with a maximum of three (3) feet of flexible pipe from the stop to the appliance. AN dud work shall be properly sealed from the heat source to the register vent and from the return air supply to the heat source. HVAC duct Insulation must be R-4 or greater and pipe insulation must be R-2 or greater. Insulation and Wsatherizatlon: An R-30 Insulation value In the attic shall be required. Exterior Doors: All exterior doors strall be solid core. All locks shall be capable of tightly securing the door and shall be readily openable from the Inside without the use of keys. All exterior doors steal! be weather stripped so that there Is no signi icani entry of air or water into the structure. Porches and Decks: All porches and deck-j shall be safe and capable of supporting anticipated bads. All porches and decks in deterioraled condition and which serve no useful purpose or which are not economically repairable shall be removed. Porches and decks thirty (30) Inches above grade shall have guardrails and flights of stairs with four (4) or more risers. They shall have a handrail on at least one side. Gutters and Downspouts: Gutters and downspouts should exist where they are deemed necessary to promote proper drainage. Gutters will rat normally be Installed N they do not already exist. Downspouts that cannot be connected to draln tiles shall have splash backs with proper site grad(ng. Chimneys and Vents: Furnace and water heater vents shall be double wall vent pipe. Existing unlined masonry chimneys having open morfar )olnt3 or cracks shall be removed or made safe by Installation of a UL approved flue liner. Vent-a-hood stacks shall be vented through the roof. Interiors: All floors, walls, and ceilings shall be maintained In good, clean, and sanitary condition All peeling paint, cracked '-f loose plaster, other defective surface conditions shall be eliminated. All doors shall be operational. APPENDIX 2 - Minimum Rehabilitation Standards - Page 2 Page 26 e E u Carpet and vinyl that Is badly wom, torn or too dirty to be cleaned shall be replaced. This shall be deterrrdned by the C,D. Housing Inspector, Existing caipet shall be cleaned by a commercial steam cleaner, N necessary, Bathroom*: M operational water ciosel, tub or shower, and lavatory should be in the bathroom. Hot water shajid flow to the lavatory and tub or shower. Cold water should be supplied to all fixtures. Either a window or an exhaust fan must be present to property vent the bathroom. Cabinda: Built-in Idtchen cabinets shall be repaired up to 50 percent of the cost of new cabinets. Bathroom cabinets are not required. I I APPENDIX 2 Minimum Rehabilitation Standards - Page 3 Pegs 27 b f a t _ APPENDIX 3 i f CHAPTER Carrying Out Energy-Saving o Requirements for Single-Family Buildings t Hom :s consume about 20% of all the Office personnel, and other focus on f energy used in the U.S. Of this amount, ways of reducing heat loss and 1 about 50 to 60% is used for beat. coo trying energy in accordance with Another 12 to 15% beau water and those requirements. about S to 8% is used for air- conditioning. Lighting and appliances take hvm 12 to 20%. DEFINING A SINGLE-FAMMY BUILDING Sins so much of the energy goes for beat and hot water, that Is where most A single-fancily detached house is a uviags can be realized and that is why single dwelling unit that stands alone Weaffiesizimg, or retrofitting, a house is with four sides exposed. Single-family so important. Just bow touch energy a attached structures are dwellings such as particular house will use depends on duplexes (which are, in effect, two many factors, iociuding: single-family bouts that abare a 1. The climate where the house is common wall) and rowbouses or located townhouses (several single-family 2. The slit and design of the budding hales attached to each other). and its orientation to the sun 3. How well the building it currently to addition, there are large, usually insulated older, structures cotsiting of two to four 4. How effectively the existing caulking separate dwelling units that arc struc- and veuherstripping prevent air nually similar to the single-family iafilnstion detached house. 5. Whether the building is air- conditioned This chapter plus Primarily to single 6. The ocatpants' entrgy.eoosumption family buildings with either a wood- habits frame eoosL-ucrkes (in which wooden studs, joists, and beams make up the Chapter 2 provided an overview of the building's frame) or a masonry oomstruc• general and particular requirements for dm However, the ealc"ou tables for single-fancily buildings. This chapter will single-family buildings are applicable help rehabilitation specialists, simgr only to wood-frame ca~struction types family property owners, HUD Area Applying the Cost-Effeedve Energy Standards is RebablUtatloo Projects Page 28 C i I1 that have cavities in the walls where conditioning will be pushed outside by Caolkine { insulation may be placed. the flow of warmer air coming in. Caulking is a very simple way to greatly i reduce unwanted air Row. Filling cracks tf Movement of heat results from radio- and openings in outside walls with a ENERGY REVIEW Pion, conduction, or convection, or some caulking compound is an easy, economi. combination of these three, cal way to realize loge savings in energy To pinpoint the areas in a single-family coax. Homeowners can maximise their t building that can benefit from energy Radiation occurs when a source of heat, savings, of emu, by applying caulkini i conservetioe measures, an energy review such as the sun or a hot radiuer, surds themselves rather than paying someone is needed. Tho energy review is actually out beat wares. Heat radiation through else to do IL It is not a difficult job. part of the rehabilitation inspection. glass windows is welcomed in the winter, t While inspectiog the structural condition but in the simmer, it can Introduce When selecting caulk, rate that materi- of a building's roof and was. for unnecessary beat into a building. • ads of different quality are available. example, the Pam cooductiog the There are three basic types of caulk. oil. inspection would also make note of Conduction is the flow of heat through ornrn-bared caulk is the [east t insulation needs, the absence ofstorm one physical material to another or just expensive, but it Is also the least •indows, and so forth. Upon completion out low the air. Insulating materials help a fecdve. It is readily available and will of the combined rehah8itatiaa inspection- to reduce beat cooductkeo substantially. bond to most surfaces, but it tends to energy review, be or she would use the harden and crack after 2 to 4 years. t calculation tables shown in Chapter 2 to Convections occurs because warm air Is Some how-to guides advise against using determine the mat coattfreaive lighter than cold air and will move it. measures. upward. As cold air becomes warm, it r ises. More cold air moves in to replace Este: and botyl-bnsed caulks are a it, and REDUCING HEAT LASS An it too becomes warm mad rises. little more expensive, but they are much air currew pa that mom dumble than oil-based caulks. heated air around a space is a all They usually last from 6 to 20 years a- ' j As noted In Chapter 2, HUD Energy predictable direcdoo. For this reason, bold up well to building expansion Ju t Standards recognize that enaff-saving most beating devices are put in or close contraction caused by changes in improvements must be tailored to the to the floor. temperanue. type of building and the kind of rehabilitation being tarried out. In all Combiuadons we hiquently Involved Elastome is uukb, such as polyure- wes, however, the improve new must In the movement of hot air. Radiator thanes, sWoones, or polysulfidet, are the be cost-effective. radiate heat end warm an entire room awn Lhtrabfe and most expensive caulks. In most houses, the first due to convection. Radiators also They writ Last 20 yeas or more and are practical atop cooduct through their metal casing. In exceptdot.dly good at withstanding the toward sans, savings is blocking the the winter, beat radiated by the am aid type of expansion and cootr2odoo flow of air Into (infiltration) and out of conducted though glass windows can be caused by extreme temperature Ructua- (ex~tin)) hInvolves, e h ld erg. To minimize a welcome addidoeal scarce of warmth tions. Elastomeric caulks can also be among other for a home. used with filler material such as oakum. or caull* (w kaelne ing all caulking eettoe, sponge rubber, or windows and doors thin ere tightly Studies have shown that a subsuadad fiberglass, to close large cracks. windoducw tl~y shut amount of indoor beat is lost as it moves clearly cost-effective, heat beat loss less s in in it thin is away is s dough cracks and openings In the Most caulking compound comes in requirement for nay tweral htnlding, including electrical outlets and tubes. Directions on the tube tell how to under the nt o roh -Oval switches in outside walls. Major beat art the nozzle and apply the compound ment dei t ed in programs loner also result from coaveaioo as with a Caulking Puts. Caulking guns an un s iwax 1. worm air move up furosce dues &A iexpensive sad madrly available at stripping aft two repiatx chinwO.C,10, klmrg and wewh r- hardware stores sand building-supply Soma Farb About Air flaw f i Heat Ion from its sauce to a odder mein designed b~e bad Improve- houses. Iou area Hot air also rises. For these that causes high beating and cooling Apply c4un=4 to all feed joints, for reasons, when houses are bested In bills. example: winter, the hot air is always trying to get out and the odd air is r'ways trying to • Around windows and loon when come In. In rummer, of course, the frames meet siding opposite is true. Air cooled by air- 'This V a general requirement. Appkl* the Cat-Efteedn Eaerly Standards in Rehabilitations Projectr Page 29 .t ■ Ilerween windowsills Irtd siding Door sweeps, consisting of vinyl or felt- along the side of the rube and slip it over • Between plates and foundation backed metal strips, cai be applied to the pipe, sealing it with duct tape au the • Around all holes for pipes, ducts, or the bottom of doors to induce au joint. *',,Eric eorCuits through outside walls infiltration. • Around all holes through a wall Fiberglass pipe insulation often comes i separating heated and unheated • Many how-to guides are available that with a paper barrier backi,ig. This .spaces, such as attached garages, provide detailed, sup-by-step instruc- backing may not be suitable for use as a storerooms, or attics • lions for installing weatherstripping. vapor barrier. Be sure to read the a Between unheated porches and the Some of these guides are listed at the instructions. To apply fiberglass insula- J main body of the house cad of this chapter. tiom, make a slit down the length of the • Where the chimney or masonry meets side of the fiberglass and wrap it around f the siding th, pipe. Seal th• Joints with dun tape or 3 • Around the outside of water faucets INSULATING REPLACEMENT the paper backing. HVAC SYSTEMS. This list is not exhaustive. For more Unlike heating and cooling systems, in a i fnformadco, refer to the reference guides Because of conduction, as much Is 40% home hot-water pipes for domestic suggested at the end of this chapter. of heating and cooling energy can be lost systems Ire used only sporadically. A through uninsulated pipes and duets in rehabih'tation specialist should deter. cold Leas. For this reason, when mine whether it is feasible and cost- WEATHERSTRIPPING' reply:inghearing, ventilarfng,andoir- efectivetoinsulauthehot-water pipes. f conditioning rysterrs, HUD £nersy Weatberstripping, Ut caulking, reduces Standards require that oll pipes and unwanted air now. Caulking is applied to duce be insulated HIGH-EFFICIENCY feed joints; weathennipping is applied HVAC SYSTEMS' to the moving parts of doors and All supply and return pipes and ducts in windows. Weatherstripping comes in the new HVAC system should be A HVAC strips this system that is improperly Ps -sPriag metals, roiled vinyl, insulated to the following specifications adjusted or is poorly suited to a building felt a*", or foam rubber. These whenever they rata through uncondi- may waste an enormous amount of materials help to seal windows and tinned spaces: duct insulation must be energy. For brunt', I system that is doom tightly to prevent a r leaks. While R4 or greater, and pipe Imuladoo must "oversized" operates inefficiently. An most weatherstripping can be applied to be R-2 or greater. (Refer to the section oversized system is one that produces both doors nod windows, some types are on Insulatioo later in this chapter for an more heat or alr•taoditiot g than the designed to be used on either one or the explanation of R-values.) space it Is utvlciag requires. For other. 'sample, if a heating system nuns on a It is not difficult to insulate pipes and seam boiler, it would be inefficient to Thla-spring meta] weatherstrippt" duos. Duct insulation generally comes boil more water than Is needed to heat can be used on bosh doors and windows. in blankets 1 or 2 inches thick. A vapor the house. The oversized system burns Tbough it is somewhat difficult to InsuU, harder should be attached to the exterior fuel and heats up the room too quickly, it is the most durable (and tow side of insulation for air-conditioning and them sbuts of. Excess heat that expensive) type of weatherstripping. It Is duds. Seal the insulation joints lightly to ortLaartily would have been pushed into virtually Inviable when in place. stop condensation. Before you insulate, the room by a properly sited system now seal all duet seams tightly and tape any merely remains la the pipet because Rolled. or flexible, vinyl is durable and leaks. Various bow-to guides discuss the the system is turned of. often this easy to install. It is made with a metal application of pipe and duct insulation. excess beat is lost through the furnue backing for doors and without a bwJ ag (See references at the end of this Cut or simply cools down in the pipes. for windows. chapter.) Furthermore, the constant on-and-off action of the tystem wastes fuel. In Fall and toaa-eabber weatherMp• Pipe insulatioo is available either as ure- cocumt, a properly sized system that ping are loespeasive and easy to Install, thane foam or fiberglass. Urdhanejoant mawbea building seeds may run looser but they are ant very durable. They tend can be purchased as a foam tube 6 or 8 but will use leu fuel because it burns to shriak after a short period of time, feet long. To apply, simply make a slit fuel at a slower rut, Some type have a self-adhesive backing. That types should never be wMs is a general requirement only (r .This is a general require meat only if the used where friction oaten. the sysum is being replaced It is system is being replaced. It is desirable desirable at other times it the pipes at aU times if the present system is "This is a general requirement. are accessible. oversized Applying the Cost-EReetfn Energy Standards In Rehabilitation Projects )00J4 e . q . I , at 1 Page 30 For these reasons, the Energy Standards Although not required if the structural Most insulation packages list the require replacement HVAC systems to component is not affected, such improve- R-value of the contents in compliance have high-efficiency systems and burners ments era save a considerable amount of with Federal Trade Commission (FTC) that are trot oversized by more than energy and reduce fuel coats sigaifo- regulations. However, for insulation 15%, A competent installation contrac- candy. previously installed, the R-value can be ; for can determine which system is most estimated by first measuring in inches efficient for a residence. In most circumstances, if the energy the thickness of the insulation. This savings do not pay for the required im- figure is then multiplied by 3.0 for an The efficiency of a system is often provements over either the term of approximate R.value. affected by its see, relative to the the loan or the useful life of the improve. building needs, as well as by any meat (whichever is shorter), the im- There are several types of insulation- changes made to save fuel. Any energy- provement should not be made. (See batts and blankets, loose-till, and rigid conserving improvement-such as in- Ca y 2 for procedures to determine board' stalling iwuiadaa in ceilings and walls coat-e:. •ess.) or adding storm windows--can eaust a Batt and blanket Insulation, lice most beating system to become oversized. It is Iasuladona bome insulation, is made of mineral a good idea to recheck the system after An adequate level of insulation will fibers, either processed fiberglass or rock maldag modifications and correct any benefit a bouse or building in many wool. Bus and blankets are used to ovenfzing. Oa or figs system Pants can ways. Insulation slows down the rate of Insulate unfinished attie flown, un. wasetima be repaired or replaced at beat conduction, keeping heat in living finished attic ceilings, unfinished walls, minimal effort sad expense. For in- areas for longer time periods. As a and the underside of Goon. This type of aaa«, the amount of ((u1 consumed by result, less beat is used in winter and air iasul Won is best suited to a standard an oU Atmace may be reduced as much coodkioaers usually operate for shorter joist or rafter spacing of 16 or 24 inches. a 20% simply by repairing a faulty periods in summer without sacrificing Both bats and blankets ajo in widths burner nozzle or by hwalfing a smaller comfort. .of 13 and 23 iocha. They are a4aaalo- i one. Akbougb such modifications do not either with or without a rape. 4Anit regWm repiaament of the entire HVAC Adequate insulation may also affect the backing. Batts generally come in IJ } sty em, they are wally om-effective efficiency of heating and coobg sysums sections 4 a 9 feet long. Blankets come and should be consdered, ad permit "dowosiaist&" For instance, in long rolls that are cut to the desired more efbdent furnaces, famsce flues, air length for installation. conditioners, and duct systems may be ADDMONAL ENERGY ktWed. Smaller, more efficient units or [.Dose-Rll Insulation Is either poured in CONSERVATION MEASURESa downsized nozzles may be possible to or blown into Boon or wale. Poured-in we to Improve efficiency and savings, loose-fill is made from cellulosic fiber, no Energy Standards require such Additionally, insulation helps to soaod rock wool, fiberglass, granulated cork, thermal improvemeats as the fastaliuioo proof. Because it is usually fate resistant, vermiculite, slag„ and other fibers. It is of iasuladoo mad storm doors and insulation may serve as a deterreat to the used to Insulate unfnisbed attic floors. windows ony if it is cost-effective and spread of fire. BlowtAn loose-fill Is made from ceUu- fessible to do so. (Sec Chapter 2.) If the bale fiber, rock wool, or fiberglass. It is rehabilitation fltzt~ walthe e rM type of fimulatiea ad the best wed to Insulate umAnished &We floors, r ceilings, or Door coverings. the Level of case w another. The level ofeffeective- waist c&Wc an ~pouredtaf~ cares of Insulation may need to be upgraded Mit mesa of an iasttluioo material is stated as masoary, blocks. Loose-fig Lisulstion is Imvo&a replacing window sashes or its R-value. R-value is the degree to the best type to use for irregularly ai®lar ert4wive repairs, storm windows which a mater(a1 a able to resist beat spaced joists or rafters or in area where and dun may also need to be added flow. The higher the material's R-value, there me many obstructions. If an ~ Energy the Standards else greater Is fn ability to insulate. existing wan has soy (asulation, or it a 0* Building materials as well as insulatioa vapor barrier does not exist, or if Da to*&e that thus measures be taken in materials bare different R-values. These being made accessible, the Energy thut portion of the building being mMbw- must be considered in determining the Standards do not require blowing or toted. aonsideraboa should also be toad thermal resistance of a building. pouring additional insulation. given to adding Insulation In atop and imtslling storesdoors and windows when and wbeaever it is cost-effective. sTbis is required if ow eflec6ve and *The U.S. ConsumerProduct Sal. when rehabilitation involves that Commission has banned the use of 0Rardmd only if coat-effective. portion of the building to be insulated. formaldehyde foam Insulation. APplylag the Coat-Efeedve Eaerp Standards L Rekabdlitedom Projeets Page 31 a As loose-fal insulatioa. rrffuforle fiber dead airspace between themselves and A number of types of storm windows : has approximately 30% more insulating the primary door or window. available. value than rock wool for the same number of inches installed. It is Storm doors and windows may be Slagle-pace glass, plastic sheet, or chemically treated for fire and moisture installed in several ways. Make-it- rigid plastic storm windows are easily resisumt. Check ae bags, which should yourself doors and windows are assem- installed in the fall and removed in the be clearly labeled to show the material bled by the homeowner and then spring. meets federal specifications lot fire installed. Ready-made doors and win- resistance, down come atready assembled and are Triple-track glass or combination purchased in the most suitable sue. storm windows are used for double- Rigid board lasolatioe is made from Custom-made doors and windows are hung or sliding windows. These come fiberglass, polystyrene, and polyure- specially made to the exact measure- with screens and can be easily opened thane. It is usually 10 to 24 inches wide meets. Custom-made windows and and closed for ventilation. (Double-vac Wad 48 inches long and comes in a doors fit best and last looser t6Wa the urdts without screens are available at variety of thicknesses with a high other types, but they are more ex- lower cost.) If installed property, plasti insulating value. This type of insulation pensive. Regardless of the type installed, storm windows are as effective as glasr c is in basement walls, on the outside of storm doors and windows should fit well ones. stud walls as sheathing, or as perimeter anti be properly caulked and weather- insulWtion on ttu ccuy walls wad in stripped. cathedral ceilings. Polystyrene and MOISTURE PROBLEMS polyuresharu rigid board installed on the . If it is not possible to install storm doors i"a well turfac+e must be covered by and windows throughout the building. After tboroughiy insulating end wearhe %-inch gypsum wallboard for fie they should be installed on the sides izins a house, moisture proaleos could resirsoce and should be i"td ty a facing north and toward the prevailing occur because all the leaks through reputable contactor. winds, where they will be most cost- which moisture could escape have he :z effective. In existing houses, storm closed off. In the home, people generat States Doors and Windows' windows tend to be more cost-effective mokrure from bathing, cocking, and A rel abtiRtatim specialist will determine than double-pane windows for two body heat. There is always moisture in whether the application of storm doors reasons: They reduce air infiltration the air. The trick is to stop it from and windows is feasrible and cat- around the window sash, and they are coodtaing. Vapor barriers and venWa effecdve. Storm Windows arr usually a less expensive to install. tion are two simple answers to this good Idea. However, ti-f c layer of potential problem. window glass we not re+v.%,un ruied., Three layers are cat aaatve only Figure l FLOW OF MOISTURE IN A BUILDING when existing windows are double- glued or when the sub is c=ptete!y replaced. If the sash is replaced, - . OUTSIDE INSIDE insulating flames should be installed in very colt areas. Cold Air t Warm Air A storm door or thermal door is WARM VAPOR recommended if the primary dwr is BARRIER boilowcort or if it is more tbwe 25% {Sass. A storm door Is a Sims door that is _ installed outside of the ptimuy door. A f FLAW OF thermal door is a tight-sealing door made MOISTURE S f with insulating material and is installed MOI in place of th'e primary door. Storm doom and windows reduce heat Exterior Sorfaee COLD VAPOR loss and air iafiicratioa by creating a BARRIER Insulation *Ila is requited only if cost-effective and when rebabilitsdoo Involves that Pardee of the house. Applying the Cost-Efleetite Energy Standards to Rehabilitation Projects page 32 r i v Vapor Barriers Consult an energy auditor or rehabilita- saving Gnprovemtnts to a rehabilitated A vapor barrier is t specially treated lion specialist for the proper use of vapor dwelling. paper, thin plastic shoe!. or low- barriers in ceilings, permeance paint that prevents candenss. Examining a Single.]°amfly Home Con of water vapor Inside a house. The Ventilation The owner a a single-family term "vapor barrier," which is com- proper ventilation in attics is important Boston have applied f x At At home in modY used in ccustrucdon, is somewhat Section b312 to remove excess moisture from the Rehabilitation foal, Th have been een misleading. Vapor barriers do not house. U an attic has insulation but no told that they are eligible for a loan at completely bar the transmission of water vapor barrier, a good rule of thumb for 3% for 20 years. A rehabilitation vapor. They are actually vapor-resistant determining the minimum ventilation specialist has undertaken an energy membranes that should have a vapor area is to take the square footage of the review, and has obtained the following permeanee (the rate that mo(stu v can floor area of the acute and divide it by information. pass through materials) of not more than 130. Thus a 1,500-square-foot attic one pem the (see term kwary). For this sbouId have 10 square feet of clear, a Heating oil at 51.05 per gallon is used ream. used for apes retarder is unobstructed ventilation area (1,300 + to beat the house. ofto vapor barrier. 130 - 10 sq R). If the attic has both ■ Electric air-conditioning at $0.08 per insulation and a vapor barrier, ford the Kwh is used to cool the house. Moisture generated inside tries to move ventilation area by dividing the floor ■ Boston has a total of 3,634 beatin out of the building. (See Figure I.) area by 300 (for ex =pit, 1,300 + 300 degree days. g Vapor barriers arc important because they stop this moiuure in a warm area 3 sq. R) ' Boston has a total of 800 sooting where it will not condense. For this hours. Attic ventilation works belt with two or • The etnrteat ceiL'ng insulation has a ream, vapor barriers should be applied more vents to permit circulation of air. Y value of R-2. There Is no insulation or to the plasterboard or drywall of a wall possible, use a high and a low vest-for vapor barrier in the walls and no insu. or eetiliag next to existing Insulation and example, an esve or soffit vent at the lation In the floor over the basemer- on the warm side of insulated floor bottom of the mofline and a gable or sections over trawl spans. ridge vent in the upper part of the roof. The rehabilitation that the basement and pct erenoted oth additional Emulation is put in, be sure heated and the windows are all that a accord vapor barrier is not applied CASE STUDY single - betweea layers of haaulation. A second glued. No replacement of mechanical vapor barrier would trap Moisture The following case study is intended to Us thhiistmf recommended at this time. on and the calcuU- between layers of insulation and show how rehabilkation specialists tion tables shown in Chapter 2, the eveatually ruin iL Moisture tL.t is determine the but application of 'nark rehabilitation specialist develops the trapped within a bWWog wall could &W cause the Structural members to rot. following summary chart: SUMMARY CHART • Location: Boston, Massachusetts a Section 312 Rehabilitation Loan program (Finance terms, 20 years @ 3%) Banding FUEL TYPE Component Q S 051gal Q SG" Electri Rherm 0 $0.08 city Kwh Comes R-38 R-38 R-38 Floor R-ly R-19 R-19 wag R-13 R.13 R-I3 Glazing Double Qwbit Double Door Storm or Tbermai Storm or Thermal Storm or Thermal APpWng the Coat-Effeed►a Easm Standards Is RebabW adon Projects Page 33 , 8 r Planning the Rehabilitation heat loss, it is not as effective at reducing to the Bank or Up the Chimney? The proposed rehabilitation involves the air infiltration as storm windows. (Department of Housing too :Jrban removal of coverings for three exterior Therefore, storm windows should be Development. April 197., 72 pages). walls and moat of the ceiling. Removal applied to all windows. This guidebook provides simple, decade. of the floorboards over the unheated instructions for either contractor or do. basement will also be necessary. Door. The proposed vestibule pre- it-yourself installation of caulking, Replacement of the primary storm vents the need for a storm or thermal weatherstripping, storm doors and win. sashes is contemplated where exterior door at the front entrance. However, for doors, and insulation (attics, floors, and walls will be removed. A vestibule is side and back entrances, storm or walls). (Available from Supe-rinteadeni planned for the front 6uance, which thermal doors should be instilled. of Documents, U.S. Government Print• should help to conserve energy. ing Office, Washington, D.C., 20402, Building Eovel3pe. Caulking and Stock Number 023-M-W297-3. Price Apply* Energy-Saving Improvements weatherstripping should be applied 51.70.) Given the proposed rehabilitation and wherever it is noneustamt or inadequate. the recommended energy-saving im- Sinn the building is located in a cold Another excellent resource for free provements, the rehabilitation specialist climate, a durable elastomeric caulk publications on do-it-yourself weatheri- can make the following recommend- should be applied Spring bronze zatiom techniques is the Residential tions concerahil the application of weatherstripping is recommended for Energy Services Department (or a improversents. doors and windows since it is the most similar consumer-oriented office) main- durable type. rained by most local utility companies. Ceilings PUthough the ceiling does not have a vspx barrier between the rock lath and current insulation, if RECOMMENDED READING adequate ventilation is provided, a vapor barrier can be omitted. Since the Several weatherization guides am avad- recammemded insulation level is R-38 able to help make homes energy and the current insulation value Is R-2, efficient. The following three booklets Table 6 (page 12) indicates that as much are particularly usefu. insulation as passible should be added up to the R-38 level. Thus it is oast- Iosoladoe Manual- Homier/Apart- effective to add approximately 9 inches meats tad Edition (Prepared by of bast and blanket insulation up to the NAHB Foundations, Inc., Rockville, depth of the structural member. Maryland, September 1979. 148 pages). This detailed guidebook dlaeussess all Walls Since no interior vapor barrier aspects of insulation. A variety of and no Insulation daureatly exist, an installation techniques an coverall, effective vapor barrier and insulation moat of which assume some basic should be installed up to the level of R- knowledge of tbastructioe on the pan of 13. Loose-fill or batt and blanket the reader. (Available from NAHB, insulation could be used. Publication Order, I Sth and M Streets, N.W., Washington, D.C., 20003. Prim Floor (Over Unheated Space). The 510.00.) recommended insuladoo level of R•19 can be seldeved within the depth of the How to Save Mosey by lasalatlag joists. However, die to the presence of Your Home. (Federal Energy Ad- electrical wiring, piping, and bracing in ministration, National Mineral Wool the basement ceiling, the installadoo of Association, Inc., September 1974, 16 insulation might not be cost-effective. pages). This well-illustrated guide dis- Installatloo cad-cstimates should be cusses installation techniques for reviewed before a decision is made. we atberstripping and caulking as well as insulation. (Available from Office of Wladows, Since the primary sashes Weatberizadon, Department of Earn-, for windows on three walls arc going to Washington, D.C., 20461. Also avail be replaced, double- or triple-glazed able from National Mineral Wool windows could be added However, Association, Inc., Summit, NJ., 07901. wh0e double-glazing reduces coodutive Pries 300, discounts for large orders.) Applying the Cost-Effective Energy Standards is Rekabilladon Projects Page 34 a .f SECTIONS EXISTING HOUSlNGrPROGRAM APPENDIX 4 S-882.109 Houslno Oua' Standards - Housing used in this program shall meet the Performance Requirements set forth in this section. In addition, the housing shall meet the Acceptability Criteria set forth in this section except for such variations as are proposed by the PHA and approved by HUD. Local climatic or geological conditions or local code. are examples which may lustily such variations. (A) Sanitary Facilities . (1) Performance Requirement. The dwelling unit shall Include its own sanitary facilities which are In proper operating condtion, can be used In Privacy, and are adequate for personal cleanliness and the disposal of human waste. (2) Acceptability Criteria. A flush toilet In a separete, private room, a fixed basin with hot and cold running water, arxi a shower or tub with hot enl cold running water shall oa p-se. t in the dwelling unit, all In proper operating m, dtlon. These facilities shall ui,„ze an approved public or private disposal system. (E) Food Preparation and Refuse Disposal - (i) Performance Requirement. The dwalling unit shall contain suitable space and equipment to store, prepare, and serve foods In a sanitary manner. There shall be adequate facilities and services for the sanitary disPo•',al of food wastes and refuso, Inelvding facilitles `of temporary storage where necessary. (2) Aoceptabiiity Critoria, The unit shall contain the following equipment in proper operating condition; cooking stove or range and a refrigerator of appropriate size for the unit, supplied by either the applicant or the Family, c-4 a kitchen sink with hot and cold running water. The sink shall drain Into an approved public or private system. Adequate space for the storage, preparation and serving of food shall be provided. There shall be adequate facilities and services for the sanitary disposal of food wastes and refuse, Including facilities for temporary storage where necessary (e.g. garbage cars), (C) Space and Socurity - (1) Performance Requirement. The dwelling unit shall afford the family adequate space and security. (2) Acceptability Criteria, A living room, kitchen area, and bathroom shall be present; and the dwelling unh shall contain at least one steeping or lMngrsteeping room of appropriate size for each two persons. Exterior doors and windows accessible from outside the unit shall be lockable. (D) Thermal Environment - (t) Performance Requirement. The dwelling unit shall have and be capable of maintaining a thermal environment healthy for the human body. (2) Acceptability Criteria. The dwelling unitshall contain safe heating and/or cooling facilities which are In proper operating condition and can provide adequate heat and/or cooling to each room in the dwelling unit appropriate for the climate to assure a healthy living environment. Unvenled room heaters which bum gas, oil or kerosene ore unacceptable. (E) Illumination and Electricity - (1) Performance Requirement. Each room siral' have adequate natural or artificial illumination to permit normal indoor acCikies and to support the health and safety of occupants. Sufficient electrical sources shall be provided to permit use of essential electrical appliances while assuring safety from fire, (2) Acceptability Criteria. Living and sleeping rooms shall Include at least one window. A ceiling or wall type light fixture shall be present and working In the bathroom and kitchen area. At least two electric outlets one of which may be present and operable In the living area, kitchen area, and each bedroom area. (F) Structure and Materials - (1) Performance Requirement. The dwelling unit shall be structurally sound so as not to pose any threat to the heahh and safety of the occupants and so as to protect the occupants from the environment. (2) Page 35 z A s r. Accepiabilily Criteria. Ceilings, walls and floors shall not have any serious defects such as severe bulging or leaning, la ge holes, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or other serious damage. The roof structure shall be firm and the roof shall be weather tight. The exterior wall structure and exterior wall surface shall not have any serious defects such as serious leaning, buckling, sagging, cracks or holes, loose siding, or other serious damage, The oondhion and equipment of Interior and exterior stairways, halls, porches, walkways, etc., shall be such as not to present a danger of tripping or falling. elevators shall be maintained in safe and operating condition. In the case of a mobile home, the home shall be securely anchored by a tie-down ` device which distributes and transfers the bads Imposed anchors so as to resist wind overturning and liding the unit to appropriate (G) Interior Air Quality - (1) Performance Requirement. The dwelling unit shall be free of pollutants in the air at levels which threaten the health of the occupants. (2) Acceptabilh Criteria. The dwelling unit shall be free from dangerous levels of air pollution from carbon monoxide, sewer gas, fuel gas, dust, and other harmful air pollutants. Air circulation shalt be adequate throughout the unit. Bathroom areas shall have at least one openable window or other adequate exhaust ventilation. (H) Water Supply - (1) Performance Requirement. The water supply shall be free from contamination (2) Accoplability Criteria. Ths unit shall be served by an approved public or private sanitary water supply. (1) Lead Based Paint - (1) Performance Requirement. The dwelling unit shall be In oompllunce with HUD Lead Based Paint regulations, 24 CFR, Part 35, Issued pursuant to the Lead Based Paint Poisoning Prevention Ad, 42 U.S.C. 4801, and the applicant shall provide a certification that tit- dwelling Is In accordance with such HUD Regulations. (ii) M the property was oonstructed prior to 1850, the Family upon occupancy shall have been furnished the notice required by HUD Lead Based Paint regulations and procedures regarding the hazards of lead based paint poisoning the symptoms and treatment of lead poisoning and the precautions to be taken against lead poisoning. (2) Acceptability Criteria. Same as Performance Requirements. (J) Access - (1) Performance Requirement. The dwelling unit small be usable and capable of being maintained without unauthorized use of other private properties, and the building shall provide an alternate means of egress in case of fire. (2) Acceptability Criteria. The dwelling unit shall be usable and capable of being maintained without unauthorized use of other private properties, and the building shall provide an alternate means of egress In case of fire. (K) Site and Neighborhood • (1) Performance Requirement. The she and neighborhood shall be reasonably free from disturbing noises and reverberations and other hazards to the health, safety, and general welfare of the occupants. (2) Acceplabil- ity Criteria. The she and neighborhood shall not be sub)ed to serious adverse environmental conditions, natural or man-made, such as dangerous walks, steps, instability, flooding, poor drainage, septic tank backups, sewage hazards or mud slides; abnormal air pollution, smoke or dust; excessive noise, vibration or vehicular traffic; excessive accumulations of trash; vermin or rodent infestation; or fire hazards, (L) Sanitary Condition • (1) Performance Requirement. The unit and its equipment shall be In sanitary condition. (2) Acceptabiihy Criteria. The units and its equipment shall be free of vermin and rodent infestation. Page 36 f (W~ Congregate Housing. The foregoing standards shall apply except for paragraph (b) of this section, Food Preparation and Refuse Disposal. In addition the following standards shall apW. (1) The unit shall contain a refrigerator of appropriate size. (2) The central dining facility (and kitchen facility, H any) shall oontain suitable space and equipment to store, prepare and serve food In a sanitary manner, and there shell be adequate facilities and services for the sanitary disposal of food wastes and refuse, including facilities for temporary storage where necessary (e.g., garbage cans). Page 37 V w.t 15 F Appaptx S Amo0 08/01!98 QUALIFYING INCOME I.1*:l AND RANGES FOR THE CITY OF DENTON'S FEM-OALLY ASSISTED PROGRAMS INCOME RANGES AND LOAN DESCRIPTIONS SD% PAYABLE LOAW 40% PAYABLE LOAN/ 20% PAYABLE LOAN/ 10% PAYABLE LOAN/ 20% DEFERRED LOAN 60% DEFERRED LOAN 80% DEFERRED LOAN 90% DEFERRED LOAN FAMILY SIZE 80% AMI • <65% AMI 65% AMI - <50% AMI 50% AMI •40% AM1 00% AM 1 527,050 -821,971 $21,970. $16,901 $16,900 • $10,141 $10,140 OR BELOW 2 530,900. 525,091 $25,090 - $19,30[ $19,300 - 511,581 $11,580 OR BELOW 3 $34,800 - 528,726 $28,725 •521,751 $21,750 •513,051 $13,050 OR BELOW 4 $38,650 • $31,398 $31,395 • $24,151 $24,150 • $14,491 $1 A,490 OR BELOW 5 $41,750 •533,931 533,930. 526,101 $28,100 •515,661 $15,660 OR'3ELOW 8 $44,800 • 538,401 538,400 -528,001 $25,000 -516,801 5IMI) OR BELOW 7 $47,900. $38,936 $38,935 - $29,951 $29,950 .$17,971 $17,970 OR BELOW 8 $51,000. $41,471 $41,470 •531,901 $31,900 • $19,141 $19,140 OR BELOW IN THESE TWO-PART LOAN CATEIAORIES THE: PAYABLE LOAN IS BASED ON A PERCENT OF THE TOTAL COST TO REHABILITATE OR RECONSTRUCT WITH PAYMENTS AMORTIZED OVER. 120 MONTHS (10 YEARS) AT A 3 PERCENT INTEREST PLATE (APR). DEFERRED PAYMENT LOAN 1,4t BASED ON A PERCENT OF THE TOTAL COST TO REHABILITATE OR RECONSTRUCT AND CARRIES A ZERO PERCEN"i INTEREST RATE. THE DEFERRED PAYMENT LOAN CONTINUES UNTILTHE APPLICANT SATISFiES THE CONDITIONS LISTED IN THE DEED OF TRUST AND PROMISSORY NOTE (EXECUTED D ,0 PRIOR TO PROJECT START DATE). THERE ARE NO MONTHLY PAYMENTS. DEFERRED PAYMENT LOANS ARE SECURED BY A LIEN ON THE PROPERTY. THE LIEN IS v FOR 120 MONTHS (10 YEARS). m Z s Q gj X 0 s 6 :a F r' APPENDIX 6 Penton, Texas ~ Target Rehabilitation Neighborhoods Map Per, y -Rw Row \ f C.e. wan Tnq duel lAJ...; 'F 16W -7~4N. i 9-1" Oak Oak UP, F, t - jI i oe" - f OIA W _ Ow" _ f _ L ..R I I \ k Wk l jjr~ 4` Jr.__ ) pro F, v Oak Y t IbdYu a.Maur W~r M. V/ilo.~ood ~ - i ArpAr, AcM Pays 39 L Apendb Nn. Agenda item CITY COUNCIL REPORT FORMAT Date_ TO: Mayor Miller and Members of the City Council FROM: Ted Benavides, City Manager SUBJECT: REVISION OF ORDINANCE 96-031 AUTHORIZING ASSIGNMENT PAY RECOMMENDATION: It is our recommendation that City Council approve the revision to existing ordinance authorizing assignment pay. SUMMARY: Assignment pay is authorized for Fire Fighters serving in "specialized functions" according to Texas Local Government, Chapter 143.042: Assignment Pay. BACKGROUND: This ordinance has been in effect since 1992. Revisions are being made to compensate for the change in the individual assuming the assignment. The change occurred when the captain assuming this assignment was promoted October 1, 1996. EMS Program Managerts assignment pay will be decreasing to $530.36 per month. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: None FISCAL IMP4CT: There is no fiscal impact other than that programmed into our budget. RESPECTFULLY SUBMITTED: Ted Benav des City Manager Prepared by: syy _ James R. Thomason Deputy Fire Chief Ross Chadw ck Fire Chief Y E:\WPD00S\0RD\PA0G-MGR ORDINANCE NO. AN ORDINANCE AUTHORIZING ASSIGNMENT PAY FOR FIRE DEPARTMENT EMPLOYEES IN THE CLASSIFICATION OF CAPTAIN WHO ARE ALSO ASSIGNED TO PERFORM THE DUTIES OF EMS PROGRAM MANAGER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 143.042 of the Local Government Code authorizes a municipality to pay assignment pay which is in an amount and is payable unner conditions set by ordinance; and WHEREAS, the City Manager and Fire Chief having recommended that the Fire Department employees in the classification of captain who are as,~ gned to perform the duties of EMS Program Manager should receive assignment pay of Five Hundred Thirty Dollars and Thirty-six Cents ($530.36) per month; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Fire Department employees classified as Captain who are assigned to perform the duties of EMS Program Manager shall receive assignment pay of Five Hundred Thirty Dollars and Thirty-six Cents ($530.36) per month in addition to the regular monthly salary of Captain. SECTION 11. That this ordinance shall become effective immed- iately upon its passage and approval. PASSED AND APPROVED this the day of 1996 JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Y f Ef\%PDOCS\0RD\PR00-WA i OR: INANCE NO. 9~-°3 r AN ORDINANCE AUTHORIZING ASSIGNMENT PAY FOR FIRE DEPARTMENT EMPLOYEES IN THE CLASSIFICATION OF CAPTAIN WHO ARE ALSO ASSIGNED TO PERFORM THE DUTIES OF EMS PROGRAM MANAGER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 143.042 of the Local Government Code authorizes a municipality to pay assignment pay which is in an amount and is payable under conditions set by ordinance; and WHEREAS, the City Manager and Fire Chief having recommended that the Fire Department employees in the classification of Captain who are assigned to perform the duties of EMS Program Manager should receive assignment pay of Five Hundred Thirty-four Dollars ($534.00) per month; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Fire Department employees classified as Captain who are assigned to perform the duties of EMS Program Manager shall receive assignment pay of Five Hundred Thirty-four Dollars ($534.00) per month in addition to the regular monthly salary of captain. ECTION II. That this ordinance shall become effective immediately upon its passage and approval. 1996PASSED AND APPROVED this the T day of . BOB CASTLEBERRY, YO ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROU1'Y, CITY ATTORNEY BY., ~Iwl ,L. z F F L , E:\WPDOCS\ORD\SPENCER],ORD Agenda No,_, Agenda Item_1-0--~~ Date-J ""---742ve ORDINANCE NO. i AN ORDINANCE AMENDING ORDINANCE NO. 96-170 BY REDUCING THE INTEREST BEING CONDEMNED FRO14 A "FEE SIMPLE INTEREST FOR DRAINAGE IMPROVEMENTS" TO A "DRAINAGE EASEMENT INTEREST"; MAKING THIS i ORDINANCE CUMULATIVE AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I- That Ordinance No. 96-170, relating to the declaration that public necessity exists and the finding that public welfare and convenience requires the acquisition of an interest in .069 acres of land owned by Sherwood M. Spencer, et al., is hereby amended by reducing the interest being condemned in such ordinance from a "Fee Simple Interest for Drainage Improvements" to a "Drainage Easement Interest." S___ION _,L This ordinance shall be cumulative of Ordinance No. 96-170 and shall not repeal any of the provisions of said ordinance except in those instances where provisions of Ordinance No. 96-170 are in direct conflict with the provisions of this ordinance. =10-111j- That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1996. ~ JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY$ CITY ATTORNEY BY: e r b F ~pendn Nc. Agenda Item_ Date / REGULAR SESSION OCTOBER 15. 1996 CITY COUNCIL REPORT FORMAT TO. Mayor and Members of the City Council FROM: Ted Benavides, City Manager SUBJECT: REVISED INVESTMENT POLICY RECOMMENDATION: Staff recommends that the City Council approve the revisions made to the City's investment Policy (Attachment A). The proposed changes will continue the City's compliance with the Public Funds Investment Act resulting from H.B. 2459 and S.B. 1085 (the bills). &uMMABY: The revisions staff has made to the current investment policy will continue the City's compliance with the provisions of the bills adopted by the House and Senate Committees of the 74th Texas Legislature and recommendations of the Investment Committee. BACKGR2LFND: During the last Texas legislative session, the House and Senate committees adopted H.B. 2459 and S.B. 1085, amending the Public Funds Investment Act (the Act). This latest amendment to the Act is intended to provide municipalities with better protection against investments that could result in the loss of public funds due to unreasonable risky investment activities. To ensure that the City's investment procedures comply with the Public Funds Investment Act, a system of control has been established to regulate investing activities and assure compliance with internal policies and procedures. The controls include a monthly independent review by the internal auditor and an annual review by an external auditor. To further assure compliance with the amendments contained in the House and Senate bills, staff has recently performed an annual review of the policy and has identified needed changes. The changes identified include a change in the date which the City Council is to receive the annual report on the investment program and investment activity. Currently, the policy states that the report will be presented to council "Within sixty (60) days of the end of the Fiscal Year." Staff recommends this be changed to "Within (60) days of the end of the Calendar Year." Secondly, a modification in the wire transfer procedures is recommended. Current policy states that "Wire f i w F transfers in excess of $500,000 should not be executed without written confirmation from authorized city staff." Staff recommends this procedure include all wire transfers and is proposing to delete the "in excess of $500,000." Staff also recommends that proper exchange and verification of personal identification numbers be incorporated into the wire transfer procedures. Staff has presented these changes to the Investment Committee and the committee recommended approval. The proposed changes were presented to the City Council for review and the Council directed staff to present the policy for approval. The Legal Department also reviewed the policy and recommended a few minor modifications PROGRAMS- DEPARTMENTS OR GROUPS AEFECTED_ The City's investment policy governs the investment of City funds. Any department with investable funds will be affected by the recommended changes to the policy. FISCAL IMPACT: There is no fiscal cost associated with the approval of these revisions. RESPECTFULLY SUBMITTED: % Ted Benavides City Manager Prepared by: Harlan L Director of Fis rations Approved by: Kathy DuBose Executive Director of Finance Z S w c, A:\INVEST.POL i RESOLUTION NO. A RESOLUTION ADOPTING AN INVESTMENT POLICY FOR FUNDS FOR THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Director of Fiscal Operations for the City of Denton ("Director") has presented a proposed policy regarding the investment of City funds and the policy's purpose is to provide the guidelines by which the City of Denton will maintain the minimum amount of cash in its bank accounts to meet daily needs, and to provide protection for its principal while receiving the highest yield possible from investing all temporary excess cash and the City Council has previously adopted that policy; and WHEREAS, the City Council desires to adopt an amended Invest- ment Policy to comply with changes in the Public Funds Investment Act, as recommended by the Director, as an official policy regarding investment of funds of the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That the following policy, attached hereto and made a part hereof, is hereby adopted as an official policy of the City of Denton, Texas pursuant to the provisions of the Public Funds Investment Act, 74th Leg. R.S., ch. 402 1995 Tex. Sess. Law Serv. 2958 (Vernon) (Tex. Gov't Code Ann. ch. 2256): Investment Policy (Reference No. 408.04) SECTION II. That the foregoing policy is attached hereto and made a part hereof and shall be filed in the official records of the City of Denton with the City Secretary. SECTION III. The foregoing policy replaces the Investment Policy (Reference No. 408.04) which became effective September 12, 1995. SECTION IV. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1996. JACK MILLER, MAYOR N re, ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY G BY: z . PAGE 2 r 0 F ATTACHMENT A CITY OF DENTON PAGE_.OF 10 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE fSECTION: FINANCE POLICIES REFERENCE NUMBER: 408.04 T: INVESTMENTS INITIAL EFFECTIVE DATE: 02/17/87 INVESTMENT POLICY LAST REVISION DATE: 09/12/95 1. PURPOSE This policy shall provide the guidelines by which the City of Denton will maintain the minimum amount of cash in its bank accounts to meet daily needs, and to provide protection for its principow and liquidity while receiving the highest yield possible from investing all temporary excess crash. This policy is being adopted pursuant to the provisions of the Public Funds Investment Act of 1987, as amended, Tex. Gov't. Code Ann. ch. 2256. II. SCOPE A. This Investment Policy applies to the investment activities of the City of Denton, excluding the specific funds cited hereafter. B. This policy shall not govern funds which are managed under separate investment programs. Such funds currently include; Employees' Retirement Fund of the City of Denton; the Firemen's and Policemen's Pension Funds of the City of Denton; other funds established by the City for deferred employee compensation; revenue bond reserve funds; and certain private donations. The City shall and will maintain resronsibility for these funds to the extent required by: Federal and State Law; the City Charter; and donor stipulations. C. The following funds. as well as other funds that may be created from time to time, shall be administered in accordance with the provisions of this policy: Cash equivalent assets of the General Fund, Community Development Block Grant Fund, Recreation Fund, Crime Prevention Fund, Airport Grant Fund, Airport Master Plan Fund, Emily Flower Library Fund, Debt Service Fund, Street Improvement Fund, General Project Fund, Electric Fund, Electric Bond Fund, Water & Sewer Fund, Water Bond Fund, Sanitation Fund, Landfill Construction Fund, Working Capital Fund, Defensive Driving Fund, Self-Insurance Fund, Employee Health Fund, Economic Development Corporation Fund and any other fund of the City not specifically excluded in these policy guidelines. III. INVESTMENT STRATEGY A. The City maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios: AAA04818 3 S n PAGE _2 0F-1,t3 POLICY/ADIINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE; INVESTMENT POLICY REFERENCE NUMBER: 408.04 1. Investment strategies for operating funds and commingled pools containing operating fuAs have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure which will experience minimal volatility during economic cycles. This may be accomplished by purchasing high quality, short to medium-term securities which will compliment each other in a laddered or barbell maturity structure. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity date of each security. 2. Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date. 3. Investment strategies for debt service reserve fundF shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from securities with a low degree of volatility. Securities should be of high quality and, except as may be required by the bond ordinance specific to an individual issue, of short to intermediate-term maturities. Volatility shall be further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity and quality range, without paying a premium, if at all possible. Such securities will tend to hold their value during economic cycles. 4. Investment strategies for special projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for 0exi.Ality and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated proiect completion date. IV. OBJECTIVE A. The overall strategy of the City's investment objective shall be to ensure a)the understanding of suitability of investment to the financial requirements of the City, b) preservation and safety of principal, c) liquidity, d) marketability of the investment, if the need arises to liquidate the investment before maturity, e) diversification of the investment portfolio; and f) yield. AAA04818 S 4 . : t s, n PAGE 3 OF l0 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: INVESTMENT POLICY REFERENCE NUMBER: 404.04 In terms of day-to-day investment purposes, the core objectives of the City's investment policy shall be to first preserve the capital in the overall portfolio. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they be from securities defaults or erosion of market value. The second objective shall be liquidity and the final objective shall be the yield of the investment. B. To prevent the possibility of loss of resources, the City will attempt to identify and limit exposure to market price risk, default risk, or not invest in a manner which is contrary to applicable federal and state regulations. C. To enable the City to meet operating requirements that might be reasonably anticipated, the City's investment portfolio will remain sufficiently liquid. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. D. Management of the investment portfolio will strive to achieve a rate of return commensurate with the legal, safety and liquidity considerations. In any event, yield should exceed the average rate of return of secondarily-traded three (3) months U.S. Treasury Bills, or the average Federal Reserve Discount rate, whichever is higher. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Even though steps will be taken to obtain this goal, the City's staff shall constantly be cognizant of risk limitations pursuant to the provisions of the amended Public Funds Investment Act, Tex. Gov't. Code Ann. Sec. 2256.006(a) E. All participants in the investment process shall seek to act responsibly as stewards of public assets. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment programs, or which could impair their ability to make impartial investment decisions. Anyone involved in investing City funds shall file with the Executive Director of Finance and the Investment Committee a statement disclosing any personal business relationship and any material financial interest in financial institutions that handle City investments. Any investment officer who is related within the second degree by affinity or consanguinity as determined under the Tex. Gov't. Code Ann. ch. 573 to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship with the City Counci: and the Texas Ethics Commission. The Director of Fiscal Operations, shall avoid any transactions that might impair public confidenc° in the City's ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured losses due to market volatility are inevitable, and must bA considered within the context of the AAA048 t 8 S f t♦ k PAGE 4 OF 10 POLICY/ADDIINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 overall portfolio's investment return, provided that adequate diversification has been h implemented. V. INVESTMENT COMMITTEE There is hereby created an Investment Committee consisting of the City Manager, Executive Director of Finance, Director of Fiscal Operations, Mayor, and one member of the City Council. The Investment Committee shall meet at least quarterly to determine general strategies and to monitor results. Included in its deliberations will be such topics as: economic outlook, portfolio diversification, maturity structure, potential risk to the City's funds, authorized brokers and dealers, and the target rate of return on the investment portfolio. The committee shall establish its own rules of procedures. VI. RESPONSIBILITY AND STANDARD A. The management responsibility for the invr:-m,nt program is hereby delegated to the Executive Director of Finance, who shall estabi;r t written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to the it dividual(s) responsible for investment transactions. The primary individual who shall be involved in investment activities will be the Director of Fiscal Operations. Both the Executive Director of Finance and Director of Fiscal Operations are designated as investment officers. Accordingly, the investment officers shall attend at least one training session relating to their responsibility under the Act within 12 months after assuming duties. No persons may engage in investment transactions except as provided under the terms of this policy and the procedures established by the Exxutive Director of Finance. The Executive Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of control to regulate the activities of the Director of Fiscal Operations. The controls shall include a monthly process of independent review by the internal auditor, and an annual review by an external auditor. The reviews will provide into nal control by assuring compliance with policies and procedures. B. The Executive Director of Finance, Director of Fiscal Operations, Mayor, City Council, City Manager and other Finance employees shall be personally indemnified in the event of investment loss provided the Investment Policies and Guidelines are followed. C. The standard of prudence to be used by the investment officials shall be the "Prudent Investor Rule," as set forth in Tex. Gov't. Code Ann. Sec. 2256.006 and will be applied in the context of managing an overall portfolio: "Investments shall be made with judgement AAA04819 t: t, 1~ .1 i PAGE S OF_0 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: INVESTMENT POLICY 7 REFERENCE NUMBER: 408.04 and care under circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probably income to be derived." Investment officials meeting this standard shall be relieved of personal responsibilities for an individual security's credit risk or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. D. The Director of Fiscal Operations shall submit monthly an investment report, to the Investment Committee, that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed, describe the portfolio in terms of investment securities, maturities, risk characteristics and other features. The report shall explain total investment return to date and compare the return with budgetary expectations or projections. E. The Director of Fiscal Operations shall prepare and present to the City Council and City Manager a written report on the City's investment transactions for the preceding reporting period. The report shall be provided quarterly, and shall 1) describe in detail the investment position of the City as of the end of the reporting period, 2) contain a summary statement of each pooled fund covering a) beginning market value, (b) additions and changes to the market value during the reporting period; and c) state the ending market value of each invested asset at the beginning and end of the reporting period by type of asset and fund; 4) show the maturity date of each invested asset, 5) show the fund group for each individual investment; and 6) stale the compliance of the investment portfolio of the City as it relates to the investment strategy of the City and with relevant provisions of the Tex. Gov't. Code ch. 2256. Within sixty (60) days of the end of the Calendar Year, the Director of Fiscal Operations shall present a comprehensive annual report to the City Council on the investment program and investment activity. The annual report shall provide a separate quarterly comparison of returns and suggestions for improvements that might be made in the investment program. The City Council shall review and approve the investment policy and investment strategies at least annually. F. The guidelines of retaining records for seven years, as recommended in the Texas Store Library Mao'cipa/ Records Manual should be followed. The Director of Fiscal Operations shall oversee the filing and/or storing of investment records. AAA04818 7 F PAGE 6 OF, J POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) T1TLF: INVESTMENT POLICY REFERENCE NUMBER: 408.04 G. Wire transfer authorization forms shall be kept on file with banking institutions. The authorization form shall identify individuals authorized to make wire transfers and the institutions designated to receive the wire transfer. The Director of Fiscal Operations or other authorized representative of the City should complete a transfer notice and give it to the proper Finance Department personnel. The transfer confirmation received from the bank should be agreed with this notice and the appropriate journal entry made. Wire transfers shall not be executed without written confirmation from the authorized city staff person and the proper exchange and verification of personal identification numbers. N. In the event of the absence of the Director of Fiscal Operations, the authority to invest in maturities beyond six (6) months shall be regulated by the controls and procedures outlined by the Executive Director of Finance. VII. INVESTMENT A. Idle funds of the City of Denton may be invested in: 1. Obligations of the United States of America, its agencies and instrumentalities (maturing in less than five (5) years); 2. Direct obligations of the State of Texas and agencies thereof (maturing in less than two (2) years); 3. Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by or backed by the full faith and credit of the State of Texas or the United States of America or its agencies and instrumentalities (maturing in less than two (2) years); 4. Obligations of the States, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationaliy recognized investment rating firm, and having received a rating of not less than "AA" or its equivalent (maturing in less than two (2) years); 5. Certificates of Deposit issued by state and national banks or savings and loans associations, domiciled in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor., or the National Credit Share Insurance Fund or its successor secured by obligations described in 1 through 4 above, and that have a market value of not less than the principal amount of the certificates but excluding those AAA04818 Q r a f PAGE 7 OF-,0 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: INVESTMENT POLICY 7 REFERENCE NUMBER; 408.04 mortgage backed securities as described in the Tex. Gov't. Code Sec. 2256.009(e). (maturing in less than one (1) year); 6. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities pledged with a third party, selected and approved by the City through its Director of Fiscal Operations, other than an agency for the pledgor and deposited at the time the investment is made with the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. Each issuer of repurchase agreements must sign a copy of the City's Master Repurchase Agncement (termination date must be 30 days or less); 7. Joint pools of political subdivisions in the State of Texas which invest in instru follow practices allowed by current law. (Maximum average menu and dollar-weighted maturity must be 60 days or less). B. The City's authorized investment options are more restrictive than those allowed by State law, Furthermore, this policy specifically prohibits investment in the following investment securities. 1. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal, 2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. 3. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years. 4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. C. It is the policy of the City of Denton to diversify its investment diversification will protect interest income from the volatility of interestrra e'ssand the avoidance of undue concentration of assets in a specific maturity sector; therefore, portfolio maturities shall be staggered. Securities shall also be selected which provide for stability of income and reasonable liquidity. Diversification strategies shall be determined and revised periodically by the Investment Committee. In establishing specific diversification strategies, the two (2) following general policies and constraints shall apply: AAA04818 9 '1. F PAGE B OF_jO POLICY/ADAIINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TrrLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 1. Risk of market price volatility shall be controlled through maturity diversification such that aggregate price losses on instruments with maturities exceeding one (1) year shall not be greater than coupon interest and investment income received from the balance of the portfolio. 2. The Investment Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in U.S. Treasury Ser -cities, federal agencies instrumentalities, repurchase agreements, insured/col lateral izeLi certificates of deposit and other securities or obligations. The Investment Committee shall conduct a quarterly review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. Risk of principal loss in the portfolio as a whole shall be minimized by diversifying investment types according to the following limitations. Investment Tyne % of Portfolio • U.S. Treasury Notes/Bonds/Bills 100% • U.S. Agencies 50% State of Texas Obligations & Agencies 15% • Local Government Investment Pools 15% Local Government Obligations 10% • Repurchase Agreements 10% • Certificates of Deposit 10% D. Security swaps may be considered as an investment option for the City. A swap out of one instrument into another is acceptable to increase yield, realign for disbursement dates, extend or shorten maturity dates and improve market sector ;versification. Swaps may be initic;-A by brokers/dealers who are on the City's approved list. E. Investments will be solicited on a competitive basis with at !east three (3) institutions. The Investment Committee can approve exceptions on a case by case basis or on a general basis in the form of guidelines. These guidelines shall take into consideration the investment type maturity date, amount, and potential disruptiveness to the City's investment strategy. The investment will be made with the broker/dealer offering the best yield/quality to the City. AAA04918 la 0 `V PAGE -90F 10 POLICY/ADMINISTRATIVE PROCEDUREIADMINISTRATIVE DIRECTIVE (Continued) TrrLE: INVESTMENT POLICY REFERENCE. NUMBER: 41)8.04 VIII. SELECTION OF BANKS AND DEALERS A. City Council shall, by ordinance, "select and designate one or more banking institutions as the depository for the monies and funds of the City" in accordance with the requirement of Tex. Loc. Gov't. Code ch. 105. The bank shall be selected primarily on "solvency and stability" and secondly, on rate of interest available. B. The Director of Fiscal Operations shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. C. The bank shall be selected through a formalized bidding process in response to the City's request for proposal (RFP) outlining all services required. The Investment Committee shall have the discretion to determine the time span for rebidding the banking services contract; however, a two year period will be the maximum length of lime between rebidding. D. Banks and savings and loans associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Director of Fiscal Operations. E. The Investment Committee shall be responsible for selecting brokers and dealers of government securities. Their selection shall be among only primary government securities dealers that report directly to the New York Federal Reserve Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. The Investment Committee shall base its evaluation of security dealers and financial institutions upon: 1. Financial conditions, strength and capability to fulfill commitments; 2. Overall reputation with other dealers and investors; 3. Regulatory status of the dealer; 4. Background and expertise of the individual representatives. Approved brokers and dealers must complete Exhibit A and return it to the Director of Fiscal Operations. In the dealing with City funds, the Director of Fiscal Operations shall conduct business with securities dealers approved by the Investment Committee or with banks selected as outlined in Vlll, Section C. To guard against default possibilities AAA04819 l 1 M1 F PAGE 10 OF 10 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: INVESTMENT POLICY REFERENCE NUMBER: 408.04 under these conditions, and to assure diversification of bidders, business with any one issuer, or investment broker, should be limited to forty (40%) percent of the total portfolio at any point in time. In this way, bankruptcy, receivership or legal action would not immobilize the City's ability to meet payroll or other expenses. IX. PRINCIPAL PROTECTION AND SAFEKEEPING A. All bank and savings and loan associations deposits and investments of City funds shall be secured by pledged collate,.] with a market value equal to no less than 102 percent of the principal plus accrued interest less an amount insured by FDIC or FSLIC. Evidence of proper collateralization in the form of original safekeeping receipts held in institutions's trust department or at a third party institution not affiliated with the bank or bank holding company will be maintained in the office of the Director of Fiscal Operations all time. The Executive Director of Finance, Director of Fiscal Operations or other authorized City Representative will approve and release all pledged collateral. Collateral will be reviewed monthly to assure the market value of the securities pledged exceeds investments and/or the related bank balances. The Committee shall request additional collateral in the event they deem that their deposits and investments are not sufficiently protected by the pledged collateral. B. Safekeeping procedures shall be established by the Investment Committee which clearly define steps for gaining access to the collateral should the City determine that the City's funds are in jeopardy. Collateral safekeeping and cibstitution agreements will be apart of the procedure, C. Only securities allowed by the Public Funds Collateral Act shall be eligible to be pledged as collateral. However, U.S. Treasury Securities shall be the primary securities accepted as collateral. D. All transactions will Se accomplished with authorized security dealers and financial institutions on a delivery-versus-payment (DVP) basis. Securities will be held by the City's safekeeping agent, which shall be selected through a competitive process (RFP) or that agent's representative in New York City, or in it's account at the Federal Reserve Bank. AAA04818 r rYi v : j w Apende No.._...._ ' Agenda Item Dated DATE: October 15,1996 CITY COUNCIL REPORT TO: Mayor and Members or` the City Council FROM: Ted Benavides, City Manager SUBJECT: Great American Main Street Awards Resolution RECOMMENDATION: Staff recommends approval.. SUMMARY: The resolution states the Council's support for the community's revitalization activities. Such a resolution is a necessary part of our entry in the Great American Main Street Awards. BACKGROUND: City Council has approved this resolution for the past two years. We have to submit a new resolution for the 1996 Great American Main Street Awards. Denton was an Honorable Mention recipient in the inaugural 1.994 competition. PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED: Main Street FISCAL IMPACT: None J Prepared b : Respectfully submitted: Wje , Main Street Manager Ted Benavides, City Manager A roved: i C/ Frank H. obbins, Al Director, Planning and Development 0 h F OCT-03-1496 15:15 CITY OF DENTON PLPNNING P.02i03 •tuan arwaw.~aa RESOLUTION NO. A RESOLUTION RECOMMENDING THAT THE DENTON MAIN STREET PROGRAM BE ENTERED INTO THE GREAT AMERICAN MAIN STREET AWARDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the downtown area and the Square in Denton has been the focal point of the commercial and social growth and success of Denton for nearly a century and a half, and continues to hold a place of honor in our community; and WHEREAS, the citizens of Denton and the merchants of Downtown Denton have endeavored to preserve and promote the unique heritage of Denton, and many volunteers have unselfishly contributed untold hours of their time and effort to the economic revitalization and development of the Downtown Denton area and the Square; and WHEREAS, the citizens of Denton, the merchants of the downtown area and the Square, and the employees of the City of Denton Main Street have joined in a unique partnership in promoting these objectives for the downtown area and Square by forming and supporting the Denton Main Street Program and they believe that downtown revitalization efforts in Denton represent the spirit of our pioneer forefathers and the vigor of our present day entrepre- neurs] and WHEREAS, the success of the Denton Main Street Program in restoring economic vitality, preserving and restoring historic sites and the resulting commercial and social success in the Denton Downtown area and the Square is unsurpassed when compared to similar communities and should qualify this program for a Great American Main Street Award; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton fully supports the entry of the Denton Main Street Program in the Great American Main Street Awards competition. SECTION II. That this resoluticn shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of r 1996. JACK MILLER, MAYOR I E F OCT-03-19% 15:15 CITY OF DENTON PLANNING . P.03/03 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED Aa TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: TOTAL P.03 b F Agenda No.___ _ Agenda It-m Dara _9~ October 1£ 1996 } CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TED BENAVIDES, CITY MANAGER SUBJECT: CONSIDER APPROVAL OF A RESOLUTION CONSENTING TO THE EXERCISE OF THE POWER OF EMINENT DOMAIN BY THE UPPER TRINITY REGIONAL WATER DISTRICT (UTRWD) NECESSARY FOR EASEMENTS INSIDE DENTON CITY LIMI'T'S FOR A WATER SUPPLY LINE FROM DENTON TO SANGER ALONG IH-35. RECOMMENDATION The Staff recommends approval. SUMMARYIBACKGROUND: The UTRWD plans to extend a 16 inch line along the east side of IH-35 from Exposition Mills to Sanger to meet UTRWD's contractual obligation to furnish treated water to Sanger. Denton plans to participate with the UTRWD in this line up to Milam Road. In contracts with the UTRWD the City of Denton has agreed to transport water, for a fee, across Denton's water system for the UTRWD to serve Sanger. Approximately 27,000 feet of the total distance is in the city limits of Denton and per the legislation that created the UTRWD, they must obtain Council approval before they can exercise the power of eminent domain in acquiring right-of-way within a member city. This resolution grants the UTRWD this consent. The resolution excludes consent for the right-of-way which the City of Denton will be securing for this line, which will be approximately 17,000 to Milam Road. Addendums to existing contracts with the UTRWD regarding Denton's participation in the pipeline and delivery of water to the UTRWD for sale to Sanger will be brought to the Council at a later meeting. FISCAL IMPACT The UTRWD will pay for all easements they acquire. Denton will pay for easements Denten acquires, if payment is required. All easement costs will be a part of the pipeline costs and will become part of Denton's participation in the pipeline. Such participation is anticipated to be $1.6 million payable over 20 to 25 years. Respectfully Submitted: Prepared R1 by ! ~ ~p Ted Benavides, City Manager L , lltc~Y ...pro E R. E. 14clson, Executive Director Utilities a ..:.i a. ° RESOLUTION N0. _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY ODFENTON CONSENTING TO THE EXERCISE THE POWER OF REGIONAL WATER DISTRI EMINENT DOMAIN BY TK UPPER TRINITY CT NECESSARY FOR THE CONSTRUCTION OF THE REGIONAL TREATED WATER TRANSMISSION SUPPLY LINE FOR THE CITY OF SANGER M THE CITY OF DENTON; AND PROVIDING AN J EFFECTIVE DATE. I2 ,J~ Upper Trinity Regional Water District (the to H.B. W - ) was orated Ptusu~t ( passed by the 7l at LeBWature in ReFlk Session 1989; and WIiEREAS, the Act municipality in Denton authorizes the District to exercise the power of eminent domain in a county upon written resolution; andn tOCeipt of prior ooasent of the municipality as evidenced by a of Directors 1 of the Sp~e ~ of Denton is a member of the District and Is represented on the Board of Phase ICS, a FMS' on January x,19%, the Dlcd; is Board of Directors Moved the the City of Denton; to supply the City of Sanger, pursuant to an a t and een= with AREAS, the Project requires the Disrict to acquire 124 eaeateoto, rights-of-way, and P"O"y Improvements widdin the City of Denton's boundaries' and WHOM", the City of Denton 1 w4wpipeline; and plans to participate 'a& coat, cagcity, and benefits of the AREAS, the City of Denton will secure *10 pipeline In which the Q of its and rights-of-way for that portion of h' Denton I. participating; and WHEREAS, the City Council supports the Project and is egrocable to giving its consent to the DieErit:t to exercise the power of the eminent domain within required lands' eta, rights•ef--way, and other to o the City, If necessary, Of the Pro obtain the early isting onat ject ttanamissloa line to supply the Ct~~ ~y dank d on Exhi A off which Is bit consent attached hereto and made a part of this rraolution for an NOW, THERREFO to the District where Denton is securing the t ematts and dghtecasof way THE COUNCIL OF THE CITY OF DENTON HEMRBY RESOLVES: ULUMU hereby i~t a m sw In the preamble ate found to be true and correct and are Worpmgted body of resolution as if copies in their entirety. . AIL That the City Council does hereby give its consent to the Upper Trinity o~ k Regional Water District to exercise its power of eminent domain within the city limit to obuin the necessary land, easements, rights-of-way, and other property and improvements to carry out the rtfeM=d portion of the Regional Treated Water Project in accordance with the pipeline alignment rxommended by Alan Plununer Associates, Inc. And approved by the District Board of Directors on January 4, 1996, generally as indicated on Exhibit "A". SF&'1Z,Q= That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,19%. , JACK MILLER, MAYOR ATTEST: JENNIFER WALTTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: WMERT L. PROUTY, CITY ATTORNEY BY: C: IWPDOCMORMSANOER. WTR Page3 ' EXHIBIT V ALAN PI,U?,i-Mrki i " AS.SOCIATI-S. INC.! BANGER OEUVERY POINT C4 r o.M«M M~rM Mora„ r *OWN ■MT Wt ,I.VR PRO PlIA> MS PIPlt M1E Hi i To Knu , r ~ 1 0 to" SY T£m LI s C ECTIO POINT lop, TO FIGURE ES-1 RECOMMCNDE. ALIGNMENT Agenda No. Agenda Item Date C/TYOFDENTON,TEX48 MUNICIPAL BUILDING DENTON,TEXAS 76201 TELEPHONE 817-566-8W9 Office of the City Secretary MEMORANDUM DATE: October 4, 1996 TO: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary SUBJECT: Board/Commission Appointments The following is a list of current Board/Commission vacancies/nominations: Plumbing and Mechanical Code Board - Robert Courtney has resigned. Although this is a nomination of a mechanical engineer for Mayor Miller, the Code of Ordinances does indicate "to the extent that persons are available within this city". Building Code Board - Mary McCain has resigned. This is a nomination of an architect for Mayor Pro Tem Brock. Building Code Board - Steve Kniatt has resigned. This is a nomination for council Member Beasley. If you require any further information, please let me know. Je er W ers t Secr ary ACCOOOF4 "Dedicated to Quality S,~ vice" F y1 r„ AD C/TYOF DENTON, TEXAS CITYNALL WEST - (8 f 7) 566-6360 D AfETRO 434-2.52 2 f N. EL44 ••DENTON, TEX4S76209 1 Bui1c~ing Inspection MEMORANDUM TO: Jennifer Walters, City Secretary FROM: Jackie Doyle, Building Offir-:al DATE: September 27, 1996 SUBJECT: Building Code Board Vacancies The Building Code Board has had two members resign recently. These members were Mary McCain and Steve Kniatt. Ms. McCain was the "architect" member of the board and Mr. Kniatt was one of the boards two "additional members". There are few architects that we are aware of who live in Denton,a few who do are: Alan Nelson, 213: Savannah Trail, 566-0266; Gerald Stone, 1300 N. Locust St., 387-9881; Isabel Miller, 711 W. Sycamore, 387-1659. Concerning the "additional member", we could really use the expertise of someone having commercial building experience. Some possible prospects include: Bill McCarty, 3912 E. McKinney St., 566-1599; David Duffield, 1910 Virginia St., 566-1726; Don Richards, 521 N. Locust St., 383-3007. t Jackfe Doyl "1).~inrfc,l to Qua~ity Sarin" I